Strategy and Objectives Working Group Update – July 2019

Smallholders Representation and Capacity Building (SCB) Working Group:

The Project Management Subgroup has officially commenced its activities with a kick-off meeting and two preparatory sessions, setting the groundwork for project evaluations. The GPSNR Capacity Building website has been updated with data from projects up to Quarter 3 of 2024, providing members with the latest insights. This month, 10 Cambodian members were approved, with an onboarding call scheduled to welcome them, and the Smallholder pre-GA webinar took place on 18 November 2024 to support engagement ahead of the General Assembly.

The Secretariat continues to support registered smallholders in the lead-up to the General Assembly, with 9 Ivorian, 5 Thai, and 2 Indonesian smallholders currently awaiting membership approval. Ongoing capacity-building projects are being actively monitored and managed, including Phase 3 of the Indonesia GAP Project, where Koltiva is revising its training materials for smallholders based on valuable feedback received.

Shared Responsibility Working Group:

To further the work on the Shared Investment Mechanism, the Project Management subgroup has approved the Project Evaluation Criteria document and will start to evaluate projects to ensure conformance with GPSNR’s requirements for capacity building projects. The subgroup will continue to review project proposals and aims to have all proposals reviewed by mid-February.

On Value Transfer related tasks, the Executive Committee’s value transfer task force met for a first meeting to discuss the next steps, agreeing that the mechanism should reward smallholders who have already put sustainable practices in place. Value transfer task force is developing a series of simple indicators that can showcase improved smallholder performance, and ways that smallholders can support this with evidence. Further discussions will continue in December. 

In early June 2020, GPSNR member companies were invited to participate in pilot testing a set of draft Baseline Reporting Requirements developed by the Policy Toolbox and Implementation Guidance Working Group. Along with the newly approved Policy Components, the Baseline Reporting Requirements will constitute a key requirement for GPSNR membership. 

“By having robust reporting requirements and a system to transparently report on progress, GPSNR member companies will be able to demonstrate leadership, monitor and further the effective implementation of their sustainability commitments, and ultimately drive positive impacts in the natural rubber value chain,” explained Amy Smith, Policy Toolbox Working Group Co-Chair.

The Working Group proposed pilot testing the Baseline Reporting Requirements with a group of volunteer member companies to better understand any constraints companies may have in obtaining and sharing certain information. The goal of the pilot was to refine and finalize the Baseline Reporting Requirements based on company feedback.

“In addition to pilot testing with member volunteers, we will also be assessing and evaluating the potential of existing certification schemes and reporting systems to adopt as part of GPSNR reporting requirements,” added Policy Toolbox Working Group Co-Chair, Pierre Bois d’Enghien. “This evaluation, together with the feedback we received from the pilot, will help us build a reporting system that is credible and useful for all stakeholders.” 

We are pleased to announce that a total of 11 GPSNR members volunteered for the pilot test. These members, who include Continental AG, Ford Motor Company, Halcyon Agri Corporation Limited, Hevea-Tec Indústria e Comércio LTDA, Industrias de Exportacion Universal, S.A., ITOCHU Corporation, Michelin, SIPH, Socfin SA, Sumitomo Rubber Industries Ltd, and The Yokohama Rubber Co., Ltd., represent all the membership categories to which the Baseline Reporting Requirements would apply. 

In mid-July, the reporting platform was opened to the pilot participants, who were given three weeks to submit the required data. Concurrently, the Secretariat conducted one-on-one interviews with the participants to gather feedback about their experience using the baseline reporting platform as well as their suggestions on ways to improve the process. 

“Our volunteer member companies were instrumental in helping to refine the Baseline Reporting Requirements and ensuring that the platform’s reporting mechanisms are relevant and meaningful for all our members,” said GPSNR Director Stefano Savi. “This improvement will help us achieve our shared objectives of ensuring a sustainable and equitable natural rubber supply chain.”

Following the approval of the policy requirements at the General Assembly in September, the Policy Toolbox Working Group will review the compiled company feedback from the pilot and the member consultation process conducted earlier this year, and will refine and finalize the Baseline Reporting Requirements for Executive Committee approval by the end of 2020. Once the Executive Committee has approved these requirements, ordinary company members will submit their baseline reporting data for 2020 to GPSNR in Q1 of 2021.

The Baseline Reporting Requirements will enable GPSNR to understand what its member companies currently know about their natural rubber supply chains, and what they are doing to move towards sustainable practices. Having a rigorous and transparent reporting process in place will strengthen the credibility of GPSNR and contribute to the development of a robust Assurance system for the platform.