Seeing Through to a Solution: Traceability and Transparency Tools and Technology Studies

The GPSNR Topic Talks webinar series is organised by the GPSNR Secretariat and presented by GPSNR members. The webinars cover several themes around sustainability and the global natural rubber supply chain.

The Topic Talks series continued on the 17th of March with Dr. Michael Steuwe from WWF US and Gerald Tan from HeveaConnect presenting on the Sumatran Rubber Pilot.

The Sumatran Rubber Pilot (SRP) is a voluntary, self-financed collaboration of rubber supply chain players and technical experts interested to facilitate the production and trade of transparent and sustainable natural rubber. The participating processing mills, tire makers, civil society organisations, technology providers and financial institutions have three major objectives:

• Demonstrate how rubber’s downstream can work together to make its upstream more sustainable.
• Identify, test, evaluate, and report on what it takes to achieve, and how to pay for transparent sustainable natural rubber supply chains.
• Develop “Proof of Concept” approaches from and for GPSNR discussions on policy requirements and implementation, transparency and traceability, capacity building, and shared responsibility.

Within a few months of the project launch in July 2020, SRP’s four rubber processing factories, managed by the Halcyon Agri and ITOCHU groups, had traced up to 1 year of rubber supplies to the village and/or sub-district of origin based on self-declarations by their supplying dealers. These approximate origins of the rubber sources were filtered through WWF Indonesia’s new environmental risk assessment and management tool which identifies High Conservation Value Areas and High Carbon Stock Forest for the whole island of Sumatra. The results allow processors and their respective downstream supply chains to focus their sustainability work with farmers on priority areas.

The SRP partners are enhancing dealer self-declarations with digital apps such as CropIn and Hamurni to assess farms’ potential environmental, social, equity, labour and legal issues accurately and to address them.

As GPSNR adopts principles and criteria for what constitutes transparent and sustainable rubber, the risk assessment algorithms will be adapted to flag compliant rubber accordingly. This is increasingly important for rubber’s downstream as companies’ Environmental, Social, Governance (ESG) impacts are becoming key evaluation criteria for investors and financiers who will demand the disclosure of the relevant information. In a parallel development, new supply chain laws will require major companies like the world’s car and tire makers to be responsible for the environmental and social impacts of their supply chains. The collection and analysis of detailed data on upstream supply chains will have to become an essential part of doing business and SRP partners are working to respond appropriately to these changes.

While continuing to focus on increasing the resolution of tracing rubber to its origin and collecting the respective data, SRP will now begin finding ways to best address the social, equity, labour, and legal issues that may have come up in supply chain assessments. 

The SRP is a voluntary, open and flexible platform of like minded partners interested in testing a diversity of approaches to achieve supply chain transparency and sustainability, and welcomes interested rubber supply chain actors to reach out and discuss how they might join the collaboration. GPSNR members interested in participating in the SRP should reach out to the GPSNR Secretariat to get involved in the project.

Assurance Model Task Force: As we approach the General Assembly in 2024 where the Assurance Model will be put up for voting, the taskforce is meeting regularly to discuss comments and incorporate comments from the second public consultation which is currently ongoing. This consultation focusses on feedback on Assessment Checklist, Assurance Protocol and Remediation Protocol, and will be accepting comments till 27 September 2024.  You can access the documents here and provide feedback here. 

Smallholders Representation and Capacity Building (SCB) Working Group: To operationalise projects with the funds collected from the Shared Investment Mechanism, the working group is setting up a project management subgroup to help in reviewing and monitoring projects under the SIM. The TOR is available here, and interested members should email cheewei@gpsrn.org by 11 October 2024. 

Additionally, Smallholders from all GPSNR member countries have nominated representatives for two positions following internal discussions within their countries: the Shared Investment Panel and the Project Management Subgroup. The final international voting is anticipated to conclude by the end of September 2024.

Shared Responsibility Working Group: The nominations for voting seats for the Shared Investment Panel are now open. Five voting seats will be allocated to manufacturers, while four voting seats will be reserved for non-manufacturers. To ensure equitable representation, each eligible member category will nominate one member to take up a voting seat.  All GPSNR member categories are currenting discussing this internally and will choose a nominee by October 2024. Please reach out to your EC representative for more details if you are not already in the discussions. 

Please note that nominees should ideally not submit capacity-building proposals this year, as they would need to recuse themselves from voting. If a category is unable to reach an agreement on a nominee, all seats will be opened for self-nominations from any member, regardless of category. In this case, the Executive Committee will vote to decide the final allocation of seats, which may result in multiple seats being held by members of the same category.