Strategy and Objectives Working Group Update – March 2020

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In driving forward the progress on the Theory of Change (ToC) and Desired State, the Chairs of the Strategy and Objectives Working Group are expected to lead discussions with the other Working Group Chairs. These discussions will focus on mapping the areas of work currently undertaken by the respective groups to the relevant sections of the ToC. Pulling together the detailed thinking within each group will enable the Working Group to flesh out the elements of each strategy and the linkage between each individual component. To package the ToC in a more user-friendly format, the Secretariat has developed a visual representation of the ToC, which gives a broad overview of the concept while allowing for a deeper dive into the details. The Working Group has reviewed the first draft of this document, and will be working with the Secretariat to finetune it. 

Following the initial survey that had gone out, consultant James Griffiths has started interviewing stakeholders on social risks priorities and mitigation solutions as part of the study on Human Rights and Labour Rights’ risk mapping in the global natural rubber value chain. 

The Equity sub-Group had their inaugural meeting this week. The members of the group agreed on the need to work with urgency and consider the approach of having a different work plan, one which would enable a move towards recommendations on a rapid basis. The importance of engaging governments was also highlighted in the discussion. The sub-Group will be meeting again next week to continue the conversation on equity.  

‘Policy Toolbox’ Working Group

The policy components and baseline reporting requirements are being circulated for comments among the various membership categories. The Producers, Processors and Traders had a teleconference organized by Socfin and Southland Global, and will also be collecting comments via email. The Tire Makers are submitting their inputs through an online survey and emails. The OEM members have also discussed the documents in a call and have consolidated their comments. Civil Society Organization members are engaged in discussions on these elements as well. The Working Group anticipates that it will be able to submit the deliverables to the Executive Committee for approval in May.

‘Capacity Building’ Working Group

In recognition of the need to prioritize an inclusive and pragmatic approach towards capacity building, the Working Group has decided to establish several regional sub-Working Groups, each of which will be responsible for developing country-specific capacity building objectives. The Working Group is exploring getting smallholders involved in some of these regional sub-Working Groups, which would be the first instance of smallholder participation at the working group level, and would be informative in the ongoing discussions on ways to integrate smallholders into the activities of GPSNR. The terms of reference for the regional sub-Working Groups are in the process of being finalised. 

The Working Group hopes to achieve greater alignment with the Theory of Change (ToC) developed by the Strategy and Objectives Working Group, through the establishment of ToCs at the working group and sub-working group level. This would allow each working group to contribute to the design of GPSNR’s ToC, with the aim to achieve the Desired State. Working groups can delve into more precise levels of identifying capacity building objectives and developing implementation plans to address the gaps in various target groups within a specific country.

‘Traceability and Transparency’ Working Group

After consulting with the Policy Toolbox Working Group on areas of risk, the finalized terms of reference for the two pilot proposals are being circulated for final feedback within the Traceability and Transparency Working Group.

The pilot study on satellite mapping and machine learning aims to make use of historical and current data and new technology to determine the risk of potential deforestation, along with other social and environmental risks that are the result of deforestation.

The traceability and transparency tool comparison study will assess, among others, the ability of the tool to identify risk and/or contribute to a risk assessment in the social, environmental and legal categories. 

The proposals will be submitted to the Executive Committee for approval in April. Moving forward, the Traceability and Transparency and Policy Toolbox Working Groups will work closely together on understanding risks in the natural rubber supply chain..

More To Explore

Empowering Smallholder Farmers: The Path to Deforestation-Free Rubber Supply Chains to Meet the EUDR

On Wednesday, 19 April 2023, the European Union approved the upcoming Deforestation-Free Regulation (EUDR) to prevent companies from placing products linked to deforestation onto the EU market. As part of the wider vision of the EU Green Deal, it will demand companies who import rubber or rubber-based products (e.g., tires) to verify that their supply chain is deforestation-free. It’s a push towards an era of environmental accountability, yet it also sparks debates about the path forward for the rubber industry.

The EUDR requires companies to have traceability to the farm level, including geo-location data and proof of land legality. According to the regulation, every plot below 4 hectares requires at least a GPS point coordinate, while plots above 4 hectares must have a polygon.

Fulfilling these traceability requirements is no small feat. There is concern from the industry that smallholder farmers may be unintentionally excluded from global sustainable supply chains. Ensuring smallholder farmer inclusion requires a holistic sustainability approach.  There is no doubt that the rubber industry has begun moving towards sustainable rubber sourcing through combined industry efforts like the Global Platform for Sustainable Natural Rubber (GPSNR). However, the reality is that most imported rubber to the EU currently does not meet the regulatory requirements as the industry lacks traceability to the farm level. As 85% of the global natural rubber supply is supplied by approximately 6 million smallholder farmers, the implications of this regulation could be far-reaching and severe, particularly for these smallholder farmers.

However, there is a lot of hope.

Firstly, even though it might seem challenging, traceability to the farm level is doable – even for the rubber industry. This has been demonstrated in a GPSNR-funded farmer training and coaching project primarily focused on supporting smallholders to apply Good Agriculture Practices (GAP). Koltiva, the company I am working for and who was selected to be the implementing partner for this project, has mapped more than 4,000 farmers and their farms to help them to prepare for the EUDR in less than a year.

Secondly, we believe that traceability to the farm is scalable. In our work with clients in 51 countries, we were able to map almost 1 million smallholder farmers through our KoltiTrace platform. Platforms such as KoltiTrace allow companies to map and verify their supply chain, including transaction traceability from Seed to Tire and deforestation-free analysis.

Finally, EUDR could have a long-term positive impact on smallholder farmers. Currently, many rubber farmers do not have proper land titles. Due to the EUDR geolocation requirements, many smallholders will, for the first time, have access to a map of their own plantation, allowing them to legalize their land.

And it doesn’t stop there. Smallholders have largely been invisible in global supply chains. Traditional development programs have tried to engage them, but they have not reached the expected results. Many smallholders still have no access to knowledge, no access to capital,  and soon will also be excluded from the carbon economy.

I believe that it’s possible to bridge these gaps. Traceability to farm level and digitalizing the first mile of agricultural value chains can lay the foundation for holistic sustainability interventions. Enabled by technology and data, the sector can equip farmers with critical knowledge, improve their access to finance, actively support farmers to apply low-carbon practices and enable them to reap the benefits of the growing carbon economy.

While traceability cannot be achieved overnight, the rubber industry is in a unique position. At GPSNR, the major industry players are sitting at one table. Through combined efforts and data-sharing agreements of shared supplier data, the rubber industry can become a leading example of how to meet the EUDR.


About the Author:
Luca Fischer is Koltiva’s Program Manager, leading Koltiva’s boots-on-the-ground implementation projects in the rubber sector globally. He bridges the gap between the client, product, and field teams.

Luca has over five years of work experience in sustainable sourcing, smallholder livelihood, and climate-smart agriculture development. He graduated with an M.Sc. in Sustainable Resource Management from the Technical University of Munich, Germany.

About Koltiva (click here for more information)
Established in 2013, Koltiva is a leading agritech company for enterprises to make their global supply chains traceable, inclusive, and climate-smart. Backed by Koltiva’s human-centered technology with boots-on-the-ground professional service, Koltiva supports some of the largest multinational companies by digitizing and verifying global supply chains, focusing on enhancing traceability, inclusiveness, and sustainability. Koltiva combines triple-tech (AgriTech, FinTech, and ClimaTech) to improve producers’ outcomes and profitability while building more sustainable supply chains.

GPSNR Secretariat July 4, 2023

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