Addressing the Impact of COVID-19 on Natural Rubber Smallholders

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Many are calling these “unprecedented times”, and undeniably so. The COVID-19 pandemic has brought the world many firsts – from the closing of international borders to country-wide lockdowns and quarantines, and extreme social distancing measures applied to everyday activities such as exercising and grocery shopping. In this sense, many of the impacts of COVID-19 have been unprecedented. 

‘Unprecedented’, however, does not necessarily translate into ‘unexpected’. This is especially true for a significant link of the natural rubber value chain: the millions of smallholders and farm workers that supply the world with around 85% of its natural rubber. These smallholders, seasonal workers and their families are some of the most vulnerable people within the natural rubber sector, living in poverty and without adequate access to social services. Poor diversification of farmers’ incomes means that farmers are solely dependent on tapping rubber trees to make a living. When a pandemic occurs and global demand for natural rubber falls, it comes as no surprise that smallholders are the hardest hit. 

The Equity sub-Working Group was formed to look into the issue of equity in the natural rubber value chain and to define what GPSNR’s role will be in promoting equity along the supply chain. It is chaired by Robert Meyer (Halcyon Agri) and co-chaired by Hendrike Braun-Issa (GIZ). The sub-Group has, in its first few calls, recognized the importance of addressing the impact that COVID-19 has on the supply chain, in particular the natural rubber smallholders. In view of this, discussions have been centered around producing a set of short-term recommendations to counter the impact of the COVID-19 crisis. These recommendations are particularly aimed at supporting small-scale natural rubber farmers and their families.

The International Rubber Study Group (IRSG), represented by Secretary-General Salvatore Pinizzotto, is also participating in the sub-Group discussions to provide advice in the area of cooperation with Governments. 

Along with the short-term recommendations, the sub-Group is also looking at long-term efforts to address the underlying systemic issues, and are carrying out a study to inform the Platform on the subjects of Living Wage and Living Income.

Improving the capacity and livelihoods of smallholders is just one of the strategies undertaken by GPSNR. It is equally important for the other players in the industry to advance GPSNR’s vision of a sustainable natural rubber value chain. The Policy Toolbox Working Group continues to finalize the proposed member policy requirements and reporting requirements, with consultation from all member categories. Meanwhile, the Traceability and Transparency Working Group is focused on acquiring a better understanding of tools to achieve greater traceability and transparency within supply chains. Both groups will be aligning on key issues such as supply chain risk assessment.

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Strategy and Objectives Working Group Update – March 2020

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..

News

Global Platform for Sustainable Natural Rubber holds inaugural General Assembly, appoints Executive Committee

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

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