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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Member Consultation on proposed GPSNR Policy Components and Baseline Reporting Requirements

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.

Natural Rubber Supply Chain comes together to build unique sustainability assurance benchmark

PRESS RELEASE

Natural Rubber Supply Chain comes together to build unique sustainability assurance benchmark 

Singapore, 20 June 2024: Members of the Global Platform for Sustainable Natural Rubber (GPSNR), who represent almost 60% of the value chain, have agreed on an industry wide assurance system in an Extraordinary General Assembly held yesterday. Through this agreement, the natural rubber industry now has a standardized stage-by-stage process through which companies can commit to, implement and verify strong sustainability standards and practices in their operations.

GPSNR members’ stage-by-stage progression towards verified sustainability assurance 

The Assurance system is currently being piloted by some volunteer manufacturers and processors until August 2024. Concurrently, three of its four mandatory elements have also been put up on a public consultation to seek comments and additional inputs that will help finetune the different aspects of the model. The feedback collected via the pilots and the public consultation will be integrated into the assurance model and put up for members’ review at the Annual General Assembly in October 2024. By 2025, all GPSNR members will be using this model in their operations. 

The model covers four mandatory elements – an Assurance Assessment checklist which will spell out the minimum requirements that members will have to meet on all aspects of the GPSNR policy framework, an Assurance Protocol which will provide guidelines to external assessors, a Remediation Protocol that includes actions and timelines to close the gaps identified by the assessors and a Members Journey or broad timeline to achieve these requirements.  Additionally, the model also includes supplementary tools that will support members in putting the assurance model into practice, like a due diligence framework and national risk assessments, amongst others.

‘’Having a system that can verify and cross check the implementation of our members’ commitments has always been our overarching goal at GPSNR. With the voting in of the Assurance Model structure, our members have demonstrated their intent to deliver on their sustainability promises. I am especially proud of the multistakeholder nature in which the assurance model has been agreed on, keeping in mind the practical position of each member category.’’ said Stefano Savi, GPSNR’s Platform Director.

GPSNR’s membership is meeting next week in Singapore to iron out the details of the minimum requirements spelt out in the Assurance Model checklist, the nature of the claims that can be made, the feedback from the pilots and the assurance protocol for third party assessors.

END

About GPSNR: 

GPSNR is an international membership driven platform set up to define sustainability for the natural rubber value chain. It brings together various stakeholders to a common ground based on fairness, equity and environmental sustainability. More on sustainablenaturalrubber.org

For more information, please contact:

Bani Bains

Communications Manager

Email: bani.bains@gpsnr.org

Ph: +65 97268165

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