Continuing the Conversation with GPSNR Topic Talks – The Sumatran Rubber Pilot

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.

The recording and slide deck from the webinar can be accessed with the links below:

1. Link to Recording
2. Link to Slide Deck

The Policy Framework was approved and adopted via a membership vote at the 2nd GPSNR General Assembly on 23 September. As part of the resolution, companies were given 6 months to align their public policies to include all the components of GPSNR’s Policy Framework, with the possibility of two extensions if evidence of progress is shown. Based on this timeline, companies will have until 23 March 2021 to submit their public policies for evaluation by GPSNR’s Compliance Panel. Full instructions on how companies should submit their public policies and other public documents will be provided in early 2021. 

The Self Assessment Form is a tool designed to help companies evaluate and track the degree of alignment between their public policies and other public documents and GPSNR’s Policy Framework. Conducting a self-assessment using this form does not constitute GPSNR approval of a company’s policies, and companies should avoid making public claims about approval of the policies before final assessment by GPSNR. Compliance with this requirement can only be confirmed by the GPSNR Compliance Panel and this will only be possible after member companies submit to GPSNR their policies or other public documents that reflect conformance with GPSNR’s Policy Framework in March 2021.

A summary timeline of the company policy approval process is depicted below:

Compliance Panel

In early 2021, the Policy Toolbox and Implementation Guidance Working Group will share the terms of reference for the three members of the Compliance Panel. GPSNR members will then be invited to nominate individuals to serve on the Compliance Panel. An Extra-ordinary General Assembly will be called in February 2021 for GPSNR members to vote on the candidates and three candidates will be voted to form the Compliance Panel. The panel will then assess the policies submitted by GPSNR member companies and determine if they are in compliance with GPSNR’s Policy Framework. More details on this will be shared with members once they are available.

Click here to download the GPSNR Company Self Assessment Form