Category: News

On Friday 7 February, Singapore announced that it was stepping up its risk assessment level. Previously at ‘Yellow’ on the Disease Outbreak Response System Condition (DORSCON) scale, the country is now at ‘Orange’. This change triggered additional precautionary measures such as an advice to cancel or defer all non-essential large-scale events. More countries are also putting in place such measures, from enforced quarantine for certain travelers to outright travel restrictions.

The safety and comfort of all members remains our utmost priority. The Secretariat will continue to monitor the situation closely, with the intention to hold the General Assembly once it becomes more stable. The new date for the General Assembly will be in 2020, and will be communicated with due notice to all members. 

During this time, all Working Groups will continue to advance their work in establishing a policy toolbox, shaping capacity building initiatives, achieving transparency and traceability, and solidifying smallholder inclusivity in GPSNR. 

The GPSNR Executive Committee has agreed to extend the deadline for submission of General Assembly resolutions and Executive Committee nominations to Tuesday, 31 March 2020.

For the latest updates on the progress of our Working Groups, please refer to the News and Publications section of our website.

The Terms of Reference (ToR) for the Equity sub-Working Group are now finalized. The group is currently recruiting members to start work on developing a shared definition of equity and  assessing the current level of equity (or lack thereof) across the natural rubber supply chain, with the help of studies on Living Wage and Living Income, which will then inform recommendations on what can be done to promote equity along the supply chain. Members should ideally belong to the Strategy & Objectives Working Group. Any other GPSNR members who are keen to participate and possess relevant expertise may indicate, for consideration, their interest by sending an email to GPSNR Impact and Assurance Manager, Kobrat Sawasdivorn (kobrat@gpsnr.org) for consideration by the Chairs of the group, James Laimos and Martin Hollands.

Following a review of the proposals received, consultancy group James Griffiths & Associates Sàrl has been selected to commence the study on Human Rights and Labour Rights’ risk mapping in the global natural rubber value chain. The study aims to improve GPSNR’s understanding of the social risks across key natural rubber production and processing countries, to propose risk mitigation strategies for each region, and to identify relevant social sector stakeholder groups that can contribute through active membership in GPSNR. A survey has been designed for Strategy & Objectives Working Group members to set the scope of the study by defining geographic coverage, identifying current perceived social risks, and contributing key perspectives and reference materials.

‘Policy Toolbox’ Working Group

The drafters held a two-day physical meeting in Singapore over 13 and 14 February to finetune the policy components and baseline reporting requirements, with input from GPSNR members representing the processing and tire-making segments of the industry. The productive session saw open sharing from all participants, which provided insights into the processes and considerations of each sector and informed the discussion on the details of the policy components. The meeting participants also examined the assurance model and how it interfaces with policy development, as well as the support systems necessary to collect and share data securely. The meeting also saw the creation of a roadmap which lays out revised timelines and a work plan for the Working Group in its second year. Moving forward, these documents will be shared with the rest of the Policy Toolbox Working Group before being presented to the larger Strategy & Objectives Group.

‘Capacity Building’ Working Group

Members have started approaching the previously identified stakeholders in various rubber-producing countries to better understand the different challenges faced in promoting sustainability in natural rubber production, capacity building activities that have been conducted, and the degree of success (or lack thereof) of such activities, as well as how they can be improved upon. The Working Group has already received some responses from stakeholders in Brazil, Indonesia, Myanmar and Thailand. Aggregated data from these interviews will then be presented to the Executive Committee. The insights gleaned from these interviews will go towards the development of a capacity building action plan, which will undergo several rounds of consultation with members, smallholders, donors and potential local partners.

‘Traceability and Transparency’ Working Group

The Working Group has developed Request for Proposals for two pilots. One pilot for a project that employs satellite mapping tools and a second pilot for a comparison study of three traceability tools.

The project aims to enhance and improve current High Conservation Value (HCV) and High Carbon Stock (HCS) mapping in areas where rubber is predominantly produced. The focus will be on a combination of tools that use remote sensing, satellite imagery and machine learning to map areas of potential deforestation and other identified risks. The Working Group will liaise with the Policy Toolbox Working Group to ensure alignment with GPSNR’s member requirements, which are currently being developed.

The three traceability tools that the comparison study will focus on are: supply chain tracking, supply chain mapping and artificial intelligence (satellite and remote sensing). The study will assess each tool’s methodology for identifying origin and collecting information, with the aim to make a suitable recommendation based on the Working Group’s specified criteria.

These documents have now been translated into several languages to cater to the geographical diversity of the group. Ensuring that the smallholders have a good foundational understanding of GPSNR’s aims, structure and bodies of the Platform and the roles of those bodies, is key to inclusion and participation. 

A sub-Working Group has been specially established to focus on preparations for the General Assembly and related sessions. The sub-Working Group will have its first session in early March, and will discuss matters such as agenda, potential facilitators, translation services, as well as plans to hold two half-day orientation sessions with the smallholders prior to the General Assembly. 

Due to the ongoing coronavirus situation, the Working Group will revise its timeline for continuing its plans to organize smallholder workshops in additional countries like India and Malaysia. Up for consideration is a partnership with the Capacity Building Working Group on possible short-term projects that can be implemented in the meantime.

Using the Theory of Change model, the Working Group identified root causes that prevent the natural rubber supply chain from achieving the desired state. Once these root causes were agreed upon, effective strategies could be designed to mitigate them.

Considering that the natural rubber industry and the world around it is not static but changes with time, the Working Group has planned for the Theory of Change to be a living document that GPSNR members will continually update and maintain. This will ensure its relevance and role in realizing the vision of GPSNR.

In addition to the above, the Working Group is drafting the Terms of Reference (ToR) for the Equity sub-Working Group. The sub-Working Group’s focus will be on how we can ensure equity along the supply chain.

‘Policy Toolbox’ Working Group

Working Group members’ comments on the first draft of the top line policy components were consolidated and incorporated into an updated draft. For ease of understanding, it was agreed that the policy components and implementation components would be displayed in separate tables. This would allow members to more easily distinguish the policy commitments they should adopt, and the corresponding actions they should implement.

The Working Group aims to have the top line policy components finalized by the end of January for the Executive Committee’s approval.  

‘Capacity Building’ Working Group

The Working Group has designed the questionnaire on which it will base the interviews of stakeholders conducting capacity building activities in rubber-producing countries. Volunteers from the Working Group as well as the GPSNR Secretariat will contact the previously identified stakeholders and seek their input on past and existing capacity building initiatives, evaluating the success of the activities and exploring the role that GPSNR can play in ensuring that the initiatives fulfill their objectives.

‘Traceability and Transparency’ Working Group

Using the Theory of Change document as an anchor to their discussions, the Working Group was able to analyze how the lack of traceability and transparency in the natural rubber supply chain would constitute a threat to sustainability, and how to tackle the associating challenges. Next, the Working Group will start on the design of pilot studies for tools currently employed to assess supply chain risks and/or achieve supply chain traceability or transparency.

Of the 22 applicants, one is from Brazil, four from Côte d’Ivoire, two from Ghana, five are from Indonesia, four from Thailand and six are from Vietnam.

The 2nd General Assembly on 31 March 2020 will see the proposal of a new membership category, ‘Smallholder Producers’. Should the voting on this resolution pass, smallholders will officially find their voice in global efforts to ensure a socially, economically and environmentally sound natural rubber supply chain.

Thanks to sustained funding from Partnerships for Forests (P4F), we will be able to invite the geographically diverse group of smallholders to Singapore to attend their first General Assembly, with the view to onboard them and to have smallholder producers represented in the Executive Committee via the voting of nominated individuals.

As it is important for the smallholders to understand what is required of them at the General Assembly and as an Executive Committee member, the Working Group will be scheduling several sessions, both remote and on-site, to thoroughly brief the smallholders on GPSNR’s Statutes and Code of Conduct. The smallholders will also have the opportunity to get acquainted with one another in the two days prior to the General Assembly.

In preparation for this, the appointed Country Champions of the Working Group will be assisting the smallholders in travel logistics and other administrative matters. The Working Group is also looking into engaging professional translation services at the General Assembly to emphasize impartiality.

We can draw parallels to the coffee industry, which similarly comprises small plantation owners and more profitable downstream actors. In his recent sustainability report on the coffee industry, economist Jeffrey Sachs’ proposal for a global fund to fill the financial gaps for sustainability investments in coffee producing regions garnered vivid discussion.  

Currently, low and unpredictable rubber prices are a constraint to smallholders who produce the bulk of global rubber output. Transparency is critical in the purchasing process, and this kind of disruption typically comes hand in hand with embracing new strategies. 

Under the purview of the Strategy & Objectives Working Group, capacity building and extension services have been identified as potential measures to mitigate the root causes of the social and environmental impact from the natural rubber supply market. Implementing these at scale for the whole industry will require considerable financial investment.   

With the above considerations in mind, GPSNR is exploring new approaches to funding that would not be borne by a single segment of the industry, but in a manner incorporating the spirit of our shared responsibility. 

Enterprise Singapore organized an industry meeting on 14 January 2020, and invited GPSNR and Singapore Exchange to better understand the available options of an e-trading platform that could contribute to our funds. The meeting also discussed what could be the options, through GPSNR, to increase the uptake of the e-trading platform.

Tapping the vast potential of digitalization could present an exciting avenue of possibilities for GPSNR to better advance our vision of a fair, equitable and environmentally sound rubber value chain.      

The meeting was initiated by representatives from Enterprise Singapore, and panel speakers comprised representatives from GPSNR, Singapore Exchange and HeveaConnect. Participants included GPSNR members as well as other Natural Rubber buyers, producers, processors and traders .

The Smallholders Representation Working Group has agreed to propose the new main characteristics for potential representatives of GPSNR smallholders as below:

Smallholder: individual natural rubber farmers with all following characteristics:

• The primary source of income for the smallholder is the farm (not only Natural Rubber); 
• The Natural Rubber production unit size is less than 50ha (although the farm may be larger);
• Profits from the farm accrue primarily to the owner of the farm and their family.

The new definition combines the qualitative and quantitative aspects with the intention to offer a pragmatic and standardized definition. The working group members understand that average farm size differs from country to country, hence having a universal threshold in farm size might not guarantee that the farmer is a small grower in that particular country. However, a quantitative indicator should be in place in order to give an objective and clear understanding to all audiences. The threshold of 50 hectares is established as an interim quantitative indicator based on the discussion in the working group that more than 80% of natural rubber supply comes from the farm which is smaller than 50 hectares.

The Country Champion is collecting application form from the smallholders that have been nominated durinng GPSNR Smallholder Workshop.  While membership fee is waived to smallholder member, funding to participate the General Assembly in March 2020 in Singapore is limited to 20 seats. The Working Group will further look at the profile of the smallholders  to design the criteria for funding mechanism.

The final version of Desired State V1-0 and Theory of Change will be submitted to the Executive Committee in view of approval at the General Assembly on 31st March 2020.  The Strategy & Objectives Working group is also preparing a concept of Equity working sub-group. GPSNR calls for members who wish to support in preparing the concept note for the equity sub-group, to please state your interest to GPSNR secretariat. 

Strategy 1 ‘Policy Toolbox’ Working Group drafters proposed the first draft of the policy elements and KPIs to the working members, which have now been mapped out against GPSNR 12 principles and desired state.  In order to collect the comments in a written form, members are asked to provide their comments online by January 3rd 2020. After the working group members agree on the final version of policy components, it will be submitted to the Executive Committee for comments and approval.

Strategy 2 ‘Capacity Building’ Working Group has completed a validation of their strategy against the Theory of Change.  The Working Group realizes that the situation in each country varies, so the capacity building strategy needs to be customized in its approach.  A list of stakeholders conducting capacity building activities in rubber producing countries has been finalised. The next step will be to collect inputs from the identified stakeholders in order to design GPSNR capacity building strategies.  In order to have a standardized information, the interviews will be conducted by GPSNR members in January 2020, and the result of the interview will be consolidated by GPSNR secretariat.

Strategy 3 ‘Traceability and Transparency’ Working Group – Some of the tools that the members are using for natural rubber traceability and transparency were presented during the first calls.  The next step is to start looking at Theory of Change, what are the underlying cause of lack of transparency and traceability, and how increasing transparency will contribute to the desired state.

GPSNR members can see the discussion and the minutes of each working grouop on GPSNR discussion forum. Please contact nigel@gpsnr.org for your log-in credentials.

What does it take to revive the Natural Rubber economy? Could the Natural Rubber 2.0 be the ultimate game changer for the new NR economy? These were some of the difficult questions discussed at the 15th Global Rubber Conference.

Hosted in Hainan, China from 12-14 December, with a theme on ‘Natural Rubber 2.0: The Game Changer’, the conference represented a very exciting event and opportunity for networking and knowledge sharing for Natural Rubber professionals in Asia, and in the rubber industry globally.

GPSNR Director Stefano Savi participated in the conference as a speaker and panel discussion member, to share updates with the industry participants about the progress of the Platform and its working groups. “Sustainability should not be seen as a threat by producers, but an opportunity to place natural Rubber as a leader in the global commodities landscape, best placed to deliver on the UN SDGs and the 2030 agenda.” said Stefano during his remarks, adding that “GPSNR is here to support smallholders in this journey, and ensure that the cost of this sustainable shift will not be borne by farmers, but supported by the industry through the Global Platform.”

Amidst the current backdrop of the fourth industrial revolution, the conference was a good opportunity to discuss the convergence of artificial intelligence and data technology as new solutions to address innovation gaps and current low demand for NR across the globe. It is obvious that from drones to satellite images and sensor technology, the natural rubber industry is poised for a radical change. So, what role will sustainability play in this desired and required industry shift? Will the natural rubber industry take advantage of this opportunity to improve its practices, maximise its positive impact, and reposition itself as a leader in innova

About BCSD Singapore Ltd

Since its inception, GPSNR was in the need of a host and BCSD Singapore Ltd. was chosen because its mission is very much aligned with that of GPSNR. From October 2018, BCSD Singapore Ltd. acted as the legal entity under which GPSNR operations were conducted. This role was formalised with the approval of GPSNR’s Statutes in March 2019. The services provided to GPSRN were about all administrative aspects of the platform which include but not limited to invoicing, accounting, procurement, and HR services. 

About WBCSD Asia Pacific Ltd

WBCSD Asia Pacific Ltd. has been established as a non-profit legal entity in Singapore in January 2019. This entity is an affiliate of WBCSD and its purpose is to support more effectively global WBCSD Members and projects in the region. With a regional office in Singapore, WBCSD is in a better position to understand regional and national specificities, business priorities and practices, political and regulatory landscape and learn from cultural diversity and perspectives of local communities.

What will change ? 

• This transition will not result in any changes of the day to day activities of GPSNR. 
• The organizational and governance structure of the platform remains the same as decided in the last General Assembly.  
• Future incoming and recurring GPSNR membership would be invoiced through WBCSD Asia Pacific Ltd (instead of BCSD Singapore Ltd) as of 1st December, 2019.
• WBCSD Asia Pacific Ltd would act as the legal entity and host for the Global Platform for Sustainable Natural Rubber (GPSNR) as of 1st December, 2019 until the platform decides to change hosting or create its own legal entity.

If you have any questions on the transition, please contact GPSNR Director, Stefano Savi (stefano.savi@gpsnr.org).