GPSNR Working Groups Update: December 2021

The Member Consultation period for the proposed GPSNR Policy Components and Baseline Reporting Requirements closed on 3 July 2020. All comments received as part of the consultation exercise were discussed by the Policy Toolbox Working Group over several rounds of calls. There has also been healthy dialogue between various membership categories and the Working Group on the alignment of the Policy Components. 

Meanwhile, pilot testing for the Baseline Reporting Requirements is in progress, with 10 GPSNR member volunteers participating in the exercise. The Secretariat will be interviewing each of the volunteers in the coming weeks to gather feedback on their experience in submitting the Baseline Reporting Requirements data. More updates will be shared in due course.

At this stage, finalized versions of the Policy Components and related documents have been submitted by the Policy Toolbox Working Group to the Executive Committee for review and further discussion at the Executive Committee level. The Policy Components will then be brought to the GPSNR General Assembly for voting.

The formulation of Policy Components is a critical piece in fulfilling GPSNR’s vision of a fair, equitable and environmentally sound natural rubber value chain. 

All GPSNR members, at the time of joining the Platform, committed to this very vision, as well as 12 principles of sustainable natural rubber as defined by GPSNR. The Policy Components were developed to provide more specificity to the 12 Sustainable Natural Rubber Principles. Within the proposed Policy Components are key commitment details to no deforestation/ conversion/ degradation, upholding human rights, supply chain transparency and monitoring and reporting. 

If approved, the Policy Components will act as a clear and guiding framework for GPSNR company members to establish or update supply chain commitments through their natural rubber purchasing policies. 

Adopting a policy allows a company to signal that the issues covered by the policy are important to the company, and that resources and capacities will be dedicated to addressing the issues in order to comply with the policy. Policies, while illuminating the goals that a company is working towards, also enables these commitments to be channelled upstream to suppliers and downstream to buyers, with the potential to transform the entire supply chain.

Following the Policy Toolbox Working Group’s observation that common questions and concerns were raised by GPSNR members during the Members Consultation period, the Working Group has developed a supplementary FAQ document to provide detailed responses to address these concerns, in a bid to provide greater clarity on the Policy Components. These will be circulated to the GPSNR membership in August, along with all other proposed resolutions.

The COVID-19 pandemic is impacting the entire natural rubber supply chain. It has triggered car and tire manufacturing companies to operate with a reduced workforce, or temporarily halt production plants altogether. Strict lockdown measures have caused a drastic fall in the sales of consumer tires across Europe. Global demand for natural rubber has dropped, the effects of which will be felt by the 6 million natural rubber smallholders in Asia, Africa and Latin America.

Many smallholders live in poverty, depending on daily wages to feed their families. Their situations will only be exacerbated by the COVID-19 crisis. Already, the Association of Producers and Processing Plants of the State of São Paulo (APABOR) has estimated that for Brazil alone, the subsistence of around 100,000 natural rubber farmers and their direct relatives is at risk.

While COVID-19 exposes the vulnerabilities of smallholders, it also reveals the potential they have to be agents of change and drivers of transformation. The pandemic has reminded us of the connections between human health, resilient landscapes, economic stability and livelihoods; the post COVID-19 world is more likely to devote greater attention to tackling environmental, social and economic impacts of its many supply chains. Smallholders, who produce 85% of the world’s natural rubber supply, are thus key to advancing GPSNR’s vision of a fair, equitable and environmentally sound rubber value chain.

One of GPSNR’s major outcomes for this year has been welcoming our new smallholder members. As of today, a total of 27 smallholder members (with additions from Myanmar) have joined GPSNR. The inclusion of smallholders into the fabric of the Platform provides them the opportunity to drive the agenda for sustainable natural rubber and, in the long-term, realize the social, economic and environmental benefits that sustainability brings. 

We encourage GPSNR members to communicate this outcome through the communication channels of their respective organizations. To this end, we launched a quarterly Members’ Communication Toolkit which outlines the suggested key message and provides ready-to-use content for communicating the message. GPSNR Members may access the Members’ Communication Toolkit for Q2 2020 in the GPSNR Forum.  

More is being done to fully include these smallholders in the Working Groups and Executive Committee. The Smallholders Representation Working Group continues with its efforts in designing a programme for onboarding smallholders prior to the General Assembly. In the meantime, some of our new smallholder members are already actively involved in Working Group discussions. Additionally, having recognized the urgency to address the impacts of COVID-19 on smallholders, the Equity sub-Working Group is developing a position paper on the issue.