Smallholders Representation Working Group Update – December 2019

Singapore, 21 March 2019: Today, natural rubber stakeholders convened for the inaugural General Assembly of the Global Platform for Sustainable Natural Rubber (GPSNR) – an independent platform that will lead improvements in the socio-economic and environmental performance of the natural rubber value chain.

Development of the GPSNR was initiated by the CEOs of the World Business Council for Sustainable Development (WBCSD) Tire Industry Project (TIP) in November 2017.

Members of the platform include tire manufacturers, rubber suppliers and processors, vehicle makers and NGOs. Representatives from each of these stakeholder groups have contributed to the development of the Singapore-based platform and the wide-reaching set of priorities that will define GPSNR strategy and objectives.

Following a ceremonial launch in October 2018 interest in the GPSNR has seen membership grow to 39 Founding Members including recruitment of the platform’s first civil society members. The GPSNR remains open to membership applications from all natural rubber stakeholders.

The General Assembly saw the approval of organizational Statutes and Code of Conduct, and the formation of an Executive Committee that has the mandate of overseeing the strategic and operational activities of the GPSNR. As required by the Statutes, the Executive Committee comprises representatives from each of the four GPSNR membership categories – 1. Rubber producers, processors and traders; 2. Car makers, Other downstream users of natural rubber, and financial institutions; 3. Tire makers and other natural rubber makers/buyers ; and, 4. Civil society organizations.

Reacting to the formation of the Executive Committee, GPSNR Director Stefano Savi, said “The appointment of the Executive Committee is a critical piece to a landmark achievement. It has taken considerable effort from all stakeholders to bring us to this point. We know that the real hard work lies ahead, but today from Singapore we send a clear message – the GPSNR is open for business.”

The platform is working to finalize its operational strategy, guided by the stakeholder-agreed GPSNR priorities of harmonizing standards to improve respect for human rights, preventing land-grabbing and deforestation, protecting biodiversity and water resources, improving yields, and increasing supply chain transparency and traceability.

Following proceedings from Geneva, Peter Bakker, WBCSD’s President and CEO said “We are enormously proud to see the GPSNR take this important step. The commitment of TIP members to achieve sustainable natural rubber has been a crucial driving force in taking the GPSNR from concept to reality. Today, our members are joined by a growing and increasingly well-balanced GPSNR membership of rubber value chain and civil society members – the actors are in place, and the foundations for transformative action along the natural rubber value chain have been laid. Now the real work can begin.”

For membership enquiries and more information on the GPSNR, please contact info@gpsnr.org

GPSNR Founding Members at the time of the platform’s inaugural General Assembly, March 2019, per GPSNR membership category, alphabetical order:

Producers, processors and traders:

Halcyon Agri Corporation, ITOCHU Corporation, Kirana Megatara, MARDEC, PRASIDHA, SIPEF, SIPH, Socfin Group, Southland Global, Thai Eastern

Car Makers, Other Downstream Users, and Financial Institutions:

BMW Group, Ford Motor Company, General Motors

Tire Makers and Other Natural Rubber Makers/Buyers:

Bridgestone Corporation, Continental AG, Cooper Tire & Rubber Company, The Goodyear Tire & Rubber Company, Hankook Tire Co., Ltd., Kumho Tire Company Inc., Michelin, Nokian Tyres, Pirelli & C. S.p.A., Sumitomo Rubber Industries, Ltd., Toyo Tire Corporation, The Yokohama Rubber Co., Ltd.

Civil Society organizations:

BirdLife International, Conservation International, HCV Resource Network, FSC, Mighty Earth, PEFC, Rainforest Alliance, RESOURCETRUST NETWORK, SNV, World Resources Institute, WWF

Affiliate Member Organizations:

Tanintharyi Region Rubber Planters and Producers Association (TRRPPA), ProForest, Control Union

For membership enquiries and more information on the GPSNR, please contact info@gpsnr.org

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.