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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News

GPSNR Working Groups Update: March 2023

The strategy and objectives working group

Both the sub working groups under the umbrella of the Strategy and Objectives WG are occupied with some critical milestones. The Risk Subgroup has received the final draft for the risk assessment framework by ASI, and will be working on piloting the framework and the next steps. The Risk Subgroup would also be looking at guidance on traceability enhancement based on pilot field trials and other data from members, and they have started a series of traceability tools webinar sessions with tool providers and member companies and planning on the second session. The next webinar is on 26th April, and you can register for it here

On the other hand, the Assurance Model taskforce is streamlining the category specific KPIs along with the members journey/assurance model blueprint that was finalised during the latest hybrid meetings. You can find more context in the minutes here or reach out for questions on info@gpsnr.org.

The smallholder representation working group: 

Along with the work on the smallholder policy equivalent for which the WG has already sent out an all-member survey and initiating the HCSA-HCVN NR Smallholder Toolkit Field Trials, they are preparing for the decided merger with the capacity building working group. More details on how this will play out can be found here

The policy toolbox working group: 

The group is working on a tender to Crosswalk RR framework with CDP Forest and GRI Reporting, while aligning with the Assurance Model taskforce on the KPI on due diligence. 

The smallholders representation & capacity building working group: 

As a newly merged working group, they continue to perform the duties of the two old working groups, including overseeing the on-ground projects in Indonesia and Thailand. At the same time, they are focussing on finalising their new TOR and agroforestry/income diversification strategies. Members who wish to continue in the SCB WG and any National Subgroup or Task Force should write to the Secretariat, indicating their organisation, name, email and the national subgroup or taskforce they are interested in participating in.

The shared responsibility working group: 

As per the decisions taken on the next steps during the hybrid meetings in January-February, the group is working with the Tiremaker category on streamlining a proposal on shared investment while also completing the deliverables on the other pillars. They are also aligning with the Assurance Model taskforce on how the KPIs will integrate into the Shared Investment mechanism. They have completed 40% of the progress they committed to on all three pillars during the in-person meetings so far.

Members

Member Consultation on proposed GPSNR Policy Components and Baseline Reporting Requirements (Members Version)

Natural rubber faces a similar set of environmental, social and economic issues as other agricultural commodities such as palm oil, but the spotlight on sustainability has only been recently turned towards this key raw material, 70% of which goes into tire production. The launch of GPSNR marked a significant step towards developing sustainable standards for natural rubber, with member organizations making a commitment to 12 Sustainable Natural Rubber Principles

The Policy Toolbox Working Group was established to develop a guiding framework for GPSNR members to implement policies and practices that align with the 12 Principles. Two key documents, the Policy Components and Baseline Reporting Requirements, have emerged after a year of discussion and drafting. 

The Policy Components outline specific commitments that GPSNR company members should include in their sustainable natural rubber policies, while the Baseline Reporting Requirements indicate qualitative and quantitative sustainability data to be reported to the Secretariat for the first year of reporting. 

A members webinar was held on 16 June, where the Co-Chairs of the Policy Toolbox Working Group explained the purpose, process and next steps surrounding the two documents. 

Several members have volunteered to participate in an ongoing pilot testing of the Baseline Reporting Requirements. The goal of the pilot is to refine and finalize the Baseline Reporting Requirements based on company feedback.

The proposed Policy Components and Baseline Reporting Requirements are now open for member consultation until 3 July 2020.

All GPSNR members are invited to download the draft documents from the links below and submit your feedback by accessing this link.

Additionally, you may view the recording and slide deck of the 16 June webinar from the links below.

Download Policy Components 

Download Baseline Reporting Requirements

View 16 June webinar recording

View 16 June webinar slide deck

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