Category: News

The signing of the MoU took place at IRSG’s Office in Singapore, on the 6 August 2019 by Mr Salvatore Pinizzotto, IRSG Secretary General and Mr Stefano Savi, GPSNR Director. The MoU will have the aim of consolidating, developing and detailing the cooperation between the two organisations. It will also contribute to the effectiveness to achieve the organisations’ common objectives in the field of sustainable production and consumption of natural rubber.

The cooperation will have a focus on Sustainability in the Natural Rubber Value Chain, particularly in relation to socio-economic and environmental aspects linked to the natural rubber sustainable production and consumption. Immediate opportunities for collaboration have been identified in the following areas: 

1. Definition of Natural Rubber Sustainability and identification of appropriate standards, building on the activity carried out from IRSG in the SNR-i project.
2. Natural Rubber Sustainability and socio-economic impacts on smallholders in producing countries.
3. Land tenure right and sustainable income of smallholders in producing countries.
4. Impact of climate change in rubber plantations and mitigation of risks.

The International Rubber Study Group (IRSG) was established in 1944 and is the only intergovernmental organization that brings the world’s rubber producing and consuming stakeholders together. The IRSG is the forum for the discussion of matters affecting the supply and demand for natural as well as synthetic rubber. IRSG is at the forefront in conducting activities and research on the sustainability of the natural rubber economy. IRSG has 36 member Governments and more than 700 industry members covering the whole natural rubber value chain.

The Global Platform for Sustainable Natural Rubber (GPSNR) is an international, multistakeholder, voluntary membership organization, with a mission to lead improvements in the socioeconomic 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. Currently the Platform has 51 Members including Producers, Processors & Traders, Tire makers and other rubber makers/buyers, Carmakers, other downstream users and Financial Institutions, and Civil society.

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.

Since its establishment a few months ago, the Smallholders Representation Working Group has been working consistently and collectively to accomplish its mission. The group has been actively involved in understanding, strategizing and testing the methods by which the platform can ensure adequate and relevant smallholder inclusion. 

In its work to date, the group has selected 11 Working Group members as “Country Champions” who have extensive regional knowledge regarding the rubber supply chain. These members have been in charge of conducting interviews of various smallholder associations and organizations in their assigned country or region. The Working Group also refers to these “Country Champions” as “GPSNR Ambassadors” because of the role they play in creating awareness about the platform. In the past few months, they have helped promote the platform internationally, specifically in Natural Rubber producing countries, by interacting with several organizations, companies and government authorities in different regions of the world. This in turn has helped create curiosity and interest regarding the platform with local stakeholders and in the international rubber community.  

To further this process, the Working Group is currently planning on organizing a series of workshops in various rubber producing regions of the world, including Indonesia, Thailand and Vietnam in Asia Pacific, Brazil in Latin America and Cote d’Ivoire, Ghana and Liberia in Africa. The objective of these workshops will be to understand the local needs and motivations of smallholders and onboard organizations representing  smallholders to join the platform. The Working Group agreed these workshops will be a chance to facilitate an open and constructive discussion between the participants, including smallholders, smallholder representatives and other rubber stakeholders. By organizing multiple workshops in different regions of the world, the Working Group is trying to ensure appropriate coverage of the vast and diverse global natural rubber supply chain.  

Through these workshops and the onboarding work done by the Country Champions, the group will be able to identify relevant smallholder representatives, in view of onboarding them as GPSNR members, to ensure smallholders representation in the GPSNR governance is achieved by the next General Assembly in March 2020.

It has been encouraging to see volunteer members of the Working Group actively participate and contribute to fulfill the tasks and responsibilities assigned to the team. Going forward, the Working Group Co-chair expects more involvement of the members as the group implements its developed action plan of organizing regular events like the regional workshops aimed at the betterment of Rubber Smallholders.

The first draft of the “desired state” document has been shared with the Executive Committee in their monthly meeting in June for further consultation. To avoid overlooking any important steps and details necessary for the development of strategies and objectives, a terms of reference was also created by the Working Group and approved by the Executive Committee, defining the scope, objectives, and outcomes which will be enabled by the process. 

The completion of the “Theory of Change Workshop” in March, where the group met in Singapore to collaborate on building out “What Good Looks Like” when it comes to sustainable natural rubber, contributed to the start of the work on the “Theory of Change” for natural rubber, a process aimed at identifying the root causes for the current state of the natural rubber industry as well as identify the Key Strategies that the Working Group believes the platform should start working on. 

Currently, the Working Group is in the process of finalizing the recommendations for launching these strategies, including  timelines for implementation in 2019/2020. The focus for the next 6 months will be on launching and pursuing three main strategies: 1) Sustainability Policy Tool Box and Best Practices; 2) Capacity Building for Smallholders and Rubber Plantations to support the incorporation of more sustainable practices; 3) Improving Transparency and Traceability within the Natural Rubber Supply Chain. 

We would like to thank the members who participated and encourage all others to actively  participate in the Working Group’s undertakings. In order to meet the high expectations set for GPSNR, we need members to attend the meetings frequently, participate consistently, and contribute in a timely manner.

This full-time educational program enrolls a talented pool of diverse students from across the globe and includes academic courses such as Geopolitics, Economics, Asian Cultures and International Business in Asia. For the course ‘Company Project’, which is aimed at giving the participants broad practical knowledge, students interact and work closely with corporate companies and organizations. For the 2019 course, students had the option of choosing from a list of 5 unique partner companies/organisations, which ranged from the likes of International Finance Corporation (IFC) and South East Asia based mobility service provider Grab, and which were involved in different types of sectors including NGOs, FinTech, Healthcare, Mobility. 30 Students who were interested in working with non-profit organizations in Asia were selected to work with GPSNR as their host organization.

As a partner organization for the program, GPSNR was given the responsibility of assigning a research project to the selected group of highly motivated students, who will work on the given topic for a duration of two and a half months. After discussions with the strategy and objective Working Group, ‘Equity in the Natural Rubber supply chain’ in Asia, with main focus on China, Thailand and Indonesia, was concluded to be the chosen main topic of research for the participants. The research will focus on better understanding the cost benefit analysis at different levels of the supply chain, including social and environmental externalities. Students will work on this research project, the findings of which will be submitted to the platform by 12 September 2019.  

Increasing engagement with research organizations and academic institutions such as ESSEC Business School in Singapore, to ensure a science based approach to sustainability in the rubber industry, will remain a key objective for the Platform.

By 2050, the number of cars in the world is expected to more than double as urban population growth and rising incomes lead to increased demand for mobility. This has led to louder calls for a more environmentally friendly, energy efficient transport sector.

But what’s been missing from the conversation on sustainable transport so far is a key material that cars and other vehicles literally run on: rubber.

Around 70 per cent of the world’s supply of natural rubber is used to manufacture the wheels that move cars and enable airplanes to take off and land. In the last two decades, the consumption of natural rubber, which is primarily produced in the world’s tropical regions, has been increasing at a steady rate of 5 per cent every year.

Ideal climate and soil conditions in Thailand, Malaysia, Indonesia and Vietnam have made Southeast Asia the epicentre of global rubber production. Ninety per cent of the 13.960 million tonnes of rubber tapped last year came from this part of the world. The last 10 years have also witnessed the expansion of industrial rubber practices in Cambodia and Laos, after land in China and Vietnam began to deteriorate as a result of large-scale rubber production.

On a recent trip to Bintan, an Indonesian island located an hour from Singapore’s shores, Eco-Business got a first-hand look at the reality of smallholder rubber farming in Asia and the challenges of charting a sustainable path for rubber.

Although natural rubber has not received as much attention as fellow tropical commodity palm oil, it creates a similar set of social and environmental problems, from contributing to rapid deforestation to a history of land grabs and human rights violations in the Mekong.

However, unlike palm oil, which is mainly produced in large estates owned by big, family-owned corporations, close to 85 per cent of global rubber is produced by smallholders in Asia, making traceability a major issue in the industry’s quest for sustainability.

“Natural rubber is a crucial element of tyre production, driving the importance of its sustainability,” William Dusseau, manager of technical relations at Cooper tyre and rubber company, told Eco-Business. “A coordinated, universal and standard industry approach is the way to drive solutions in establishing and promoting sustainable natural rubber practices.”

He added that the launch of the Global Platform on Sustainable Natural Rubber (GPSNR), which took place last Thursday at the World Rubber Summit in Singapore, was a significant step in developing and maintaining sustainable rubber standards.

Members of the new platform include major brand tyre companies such as Cooper, Michelin, Pirelli, and Bridgestone and global car manufacturers including BMW Group, Ford Motor Company and General Motors.

GPSNR also includes international non-profit and civil society organisations such as Mighty Earth, Birdlife International and World Wide Fund for Nature (WWF).

According to Jean Bakouma, head of the Forest Program at WWF-France, since the rubber value chain is primarily driven by buyers, tyre manufacturers hold the greatest leverage for improving both the socioeconomic and environmental performance of natural rubber production.

“A robust sustainability policy that is thoroughly implemented by tyre manufacturers must consider sustainable natural rubber as a natural and responsible way to protect forests with high conservation value and high carbon stock, as well as foster other environmental services,” he said.

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

A 22-23 January stakeholder workshop in Singapore saw Founding Members of the GPSNR and other stakeholders, align on a multi-stakeholder governance structure that includes a greater share of voting weight for civil society members. “This is a significant development,” said Stefano Savi, GPSNR Director “the model aligned on last week in Singapore comes out of a November 2018 workshop in Geneva – it’s a product of the dedication of all stakeholders to the shared goal of sustainable natural rubber – we’ve seen compromise from all parties, there’s a spirit of cooperation and inclusivity that shows there’s real commitment to make this work.”

The proposed governance structure will be put forward for adoption at the platform’s inaugural General Assembly (GA) planned for 21 March 2019, Singapore, scheduled in conjunction with the World Rubber Summit. Whilst multiple stakeholders have provided valuable input to the development of the platform thus far, governance roles and rights-to-vote are reserved for platform members only.

The platform includes the enrollment of smallholder members amongst its priorities. Despite the challenges associated with recruiting smallholder representatives, the more than 50 GPSNR stakeholders present at the workshop agreed that this critically important stakeholder group should be part of the GPSNR decision making structure. A dedicated working group will be established to coordinate actions to identify and secure adequate smallholder representation.

The workshop also confirmed the need for targeted member-recruitment to bolster the inclusion of rubber processors, NGOs specialized in social aspects relevant to rubber production, as well as non-tire manufacturing rubber makers.

“Agreement on platform governance is excellent progress and means the platform can better focus on the work ahead. We’re all aware of the critical challenges that remain, but there’s a feeling that, together, we can meet those challenges” said Savi, speaking at the close of the two-day workshop.

Stakeholders including tire manufacturers, other rubber users, suppliers and processors, vehicle makers and NGOs, contributed to the development of the Global Platform for Sustainable Natural Rubber (GPSNR). This included alignment on a wide-reaching set of priorities for the natural rubber supply chain. The GPSNR will work to harmonize standards to improve respect for human rights, prevent land-grabbing and deforestation, protect biodiversity and water resources, improve yields, and increase supply chain transparency and traceability.

Development of the platform was initiated by the CEOs of the World Business Council for Sustainable Development (WBCSD) Tire Industry Project (TIP) in November 2017 and has since been led by a Working Group of TIP member companies. TIP members continue to work to ensure the sustainable production and supply of natural rubber, and in joining the platform they commit to be able to demonstrate the integration of principles for sustainable natural rubber into their purchasing and/or operational activities. The GPSNR is open to applications for membership from other natural rubber stakeholders.

Speaking at the launch Peter Bakker, President and CEO of WBCSD said “The tire industry consumes around 70 percent of natural rubber and demand is growing. This throws into sharp relief the social, economic and environmental opportunities associated with this important commodity. The GPSNR will consider the people, communities and natural resources touched by natural rubber production and supply – they all stand to benefit from the creation and adoption of sustainable and responsible practices.”

The ceremonial launch included the signing of a GPSNR Member Statement by the 11 members of TIP, and Ford Motor Company, Halcyon Agri Corporation Limited, ITOCHU Corporation, Kirana Megatara, SIPEF, The Socfin Group, and Southland Global PTE Ltd.

Bakker praised the efforts of founding and prospective GPSNR members in bringing the platform to launch, adding “This spirit of collaboration will define the actions of the platform going forward – there is strength in diversity, and the various interests and expertise within the GPSNR can deliver a truly sustainable natural rubber supply chain.”

The WBCSD’s TIP spearheaded development of the GPSNR and will financially support the platform during start-up and its first two years of operation – a level of support necessary to ensure basic operations while a paying membership base is established. Despite industry backing the GPSNR will maintain its independence, underlined Anne-Cécile Remont, Director WBCSD TIP– “Once officially launched, the platform will be independently managed, with governance and decision making overseen by a representative group of stakeholders.”

Building upon past work, in developing the platform, a review of comparable supply chain sustainability initiatives, including natural rubber, revealed that meaningful change was best achieved through the mainstreaming of good practices and this was central to discussions around the GPSNR’s governance structure, explained Remont. “Successful mainstreaming requires actionable commitment from the entire supply chain. Best results are found where the various contributions of stakeholder groups are relative to their ownership of supply chain opportunities, their relevant expertise and their capacity to implement meaningful change,” she said.

To be headquartered in Singapore, a dedicated GPSNR secretariat will kick-off operations in March 2019 with an inaugural GPSNR General Assembly.

Sustainable natural rubber, a Tire Industry Project priority

This, of course, means looking after the people, communities and natural resources touched by natural rubber production and supply – which all stand to benefit from the creation and adoption of sustainable practices and businesses.

TIP leading change

The tire industry consumes around 70 percent of natural rubber in the world and demand for natural rubber is growing, which throws into sharp relief the various social, economic and environmental opportunities associated with the production of this important commodity.

Together with other stakeholders, TIP members are working to transform the natural rubber supply chain for the better in developing the Global Platform for Sustainable Natural Rubber (GPSNR) – an independent platform to lead improvements in the socio-economic and environmental performance of the natural rubber value chain.

An ambitious and wide-reaching set of priorities

Twelve months of stakeholder collaboration have resulted in development of an ambitious, wide-reaching, common set of priorities for the natural rubber supply chain. The GPSNR will work to harmonize standards to improve respect for human rights, prevent land-grabbing, protect biodiversity and water resources, improve yields, and increase supply chain transparency and traceability.

Mainstreaming for meaningful change

A review of comparable supply chain sustainability initiatives revealed that the mainstreaming of good practices is linked to the delivery of meaningful change at the global level. This is something that requires actionable commitment from the entire supply chain, and numerous different stakeholder groups have important roles to play. In the case of natural rubber, this includes tire manufacturers and other natural rubber-using industries (such as those producing rubber gloves, condoms and other engineered products), natural rubber suppliers and processors, representatives of individual smallholder producers, vehicle manufacturers, and non-governmental organizations.

Binding commitments

A chain is only as strong as its weakest link; it is in the interest of the entire supply chain to ensure sustainable standards are met and maintained. The GPSNR will have clear membership criteria and supply chain standards that members must commit to maintain effective involvement. Members of the GPSNR will undertake binding commitments, and the GPSNR will constructively address failures to honor those commitments and act decisively in the event of noncompliance with remedial measures.

Industry backed, collaboratively driven

TIP has spearheaded development of the GPSNR and will provide initial support for the platform during its first two years of start-up and operation. This necessary level of support ensures basic operations during the establishment of a paying membership base. From launch, the platform will be independently managed with governance and decision making overseen by a representative group of stakeholders.

TIP has employed a truly collaborative effort to ready the GPSNR for launch, and that spirit of collaboration will define the actions of the platform going forward. TIP is confident that the diverse interests, experiences, areas of expertise, and motivations represented within the GPSNR will combine to deliver a successful, sustainable natural rubber supply chain.

Join the platform

If you are a natural rubber stakeholder and would like to learn more about the GPSNR and membership opportunities, please contact stefano.savi@gpsnr.org