Category: News

Public feedback is currently closed and under review 

The Global Platform for Sustainable Natural Rubber has prepared three guidance documents to support GPSNR members in their efforts to comply with the upcoming European Union Deforestation Regulation. 

The Platform is now conducting a 30-day public consultation on these documents. After the consultation, a multi-stakeholder task force within the Platform will review the comments, make the necessary changes, and send these documents for endorsement by the Executive Committee.

Any feedback on the documents should be added by 15th May 2024.

The final version will be publicly available once all the feedback has been incorporated. 

Add your feedback here before 15 May 2024

Smallholder farmers are key stakeholders in natural rubber supply chains accounting for 85% of global supply, and enabling the resilience and sustainability of the value chain. However, smallholder farmers are the most vulnerable to major changes in the economic and regulatory landscape. Their vulnerability is heightened by the fact that many smallholders lack formal land documentation. Fortunately, many rubber producing countries are progressively implementing land tenure formalization programmes for smallholders but they undoubtedly will take significant amounts of time to fully implement.

The Global Platform for Sustainable Natural Rubber (GPSNR) supports the intent and implementation of the EU Regulation on Deforestation-free products (EUDR), and considers it a bold and necessary step to addressing deforestation, human rights violations, and illegality in commodity production, including natural rubber. However, it is key that its implementation ensures the continued inclusion and support of smallholders in EU supply chains.

GPSNR includes more than 200 smallholder farmers from 12 countries in its membership and has heard their concerns regarding the potential unintended consequences of the law.

As reflected in its Policy Framework, GPSNR is committed to recognise and protect the customary, traditional and communal land tenure and use rights of Indigenous People and local communities (IPLC), including smallholder farmers who have such rights, even in cases where they are not formalised yet in the legal system of the country in which they reside.

In view of supporting the inclusion of smallholders in EU supply chains, while ensuring due diligence against illegality, the GPSNR requests the European Commission provide additional EUDR guidance to competent national authorities regarding how to effectively check that operators and traders have conducted sufficient due diligence to determine the legality of commodities falling within the scope of the Regulation considering the mosaic of native and customary land rights arrangements found on smallholder farms around the world. Examples of how this could be achieved might include: 

•  The creation of a shared information system amongst competent national authorities to assess the practical state of producing countries’ efforts to document and formalize recognition of customary land tenure arrangements for smallholder farmers;

   

• Work with producer country governments to identify prevalence of customary tenure.

   

• Providing practical guidance to EU competent authorities and regulated companies on:

   

  o How to robustly assess and map the customary land title claims in each country to ensure smallholders are not cut out of supply chains before formal land registries are created and protect the right to self-determination of IPLCs who do not wish to engage in land title formalisation even if it becomes available. 

  o In countries where formalization of land tenure is still under development, prioritize assessment of legality to establish that commodities placed on the market do not originate from land that has been occupied or acquired in violation of national land laws or customary tenure arrangements (i.e., through a “land grab”); through dispossession or abuse of the rights of vulnerable members of a population by elites; or which is located within prohibited areas such as national parks, wildlife reserves, or other protected areas, or from other restricted use areas.

  o Specifics on the types of documentation to collect to substantiate the rights (formal or customary) of smallholder farmers to use land parcels for the production of the relevant commodity. This could include documentation recognized by local authorities, or other evidence of locally recognized land tenure, and evidence that key regulatory bodies in producing countries have indicated general acceptance that smallholder farmers cultivating land under customary and/or communal land tenure arrangements may legally produce and sell rubber (this may be explicit – e.g., through a license – or implicit, e.g. through the provision of official extension support, credit schemes, or marketing assistance to registered smallholders);

We call the Commission and other EU and national institutions for a joint effort to enable smallholder farmer organizations to meet EUDR compliance; and proactively work with the producing countries to address potentially conflicting national laws, issues of inadequate law enforcement and corruption, and provide support to producing countries to tackle these issues and empower smallholders to maintain access to EU markets. GPSNR commits to support just transitions to secure forms of land tenure. We will collaborate with members to enhance capacity in land tenure and support programs facilitating smallholders’ access to formal land documentation where applicable.

Finally, we wish to clarify that the above proposals are in no way intended to avoid compliance by GPSNR operators and traders purchasing and selling natural rubber products covered under the scope of the Regulation. Rather, they are designed to support and enhance the position of the six million smallholders in global rubber supply chains to help realize the potential of the law, whilst themselves benefiting from it. These proposals are supported by GPSNR’s smallholder and civil society representatives, alongside industry members.

The GPSNR Executive Committee has sent this letter to the European Commission for further deliberation. 

Strategy and Objectives Working Group:

Drafts of the proposed KPIs and Due Diligence System for the platform have been finalised and are now pending further discussions following the expected approval of the Members Journey Model at the 2023 General Assembly. These discussions aim to achieve document finalisation and alignment.

As for the Risk Subgroup Traceability Pilot Field Trials, both consortiums, Agridence and Koltiva, have submitted their final reports and signed off on these projects. They will be presenting the results of the Traceability Pilot Field Trials in an upcoming webinar session open to the public.

Simultaneously, the Risk Subgroup have been gathering and analysing user feedback for the initial version of the Risk Tool.

In the event that the Assurance Model resolution (5b) receives approval, the Assurance Model Task Force is poised to collaborate with ASI in developing GPSNR’s comprehensive Assurance Model. This endeavour will encompass alignment with existing normative documents, member consultation, and pilot testing. Ongoing discussions are currently underway to establish an operational plan and timeline for this initiative.

Furthermore, the Risk Subgroup has embarked on preliminary discussions exploring a potential collaboration with the Basel Institution to investigate corruption risks within the supply chain.

Lastly, the Risk Subgroup is currently awaiting alignment on normative documents by ASI before proceeding with further development of the Risk Tool. This step ensures that the tool complies with the requirements of the Assurance Model.

Smallholders Representation and Capacity Building (SCB) Working Group:

The SCB WG has efficiently organised both national and international calls with smallholder members in preparation for GA2023. To enhance comprehension among smallholder members, the GA Booklet has undergone translation in accessible languages.

In addition, the Thailand Agroforestry subgroup has conducted the first two rounds of coaching sessions for 100 smallholders in Songkhla. Similarly, the Thailand Good Agroforestry Practices (GAP) subgroup has initiated its activities with a kick-off meeting.

On the technological front, the Digital Knowledge Sharing Platform (KSP) task force has convened multiple times to review the developed features, with plans to address bugs and enhance the platform’s functionality. The HCSA-HCVN Field Trial report has received official endorsement.

Looking ahead, the SCB WG will continue to oversee all projects within its purview. The Indonesia subgroup is scheduled to present quarterly reports for all three projects on October 27, 2023. Additionally, a webinar is slated for November 30, 2023, to present the findings of the HCSA-HCVN field trial.

Regarding the Thailand GAP project, GPSNR is in the process of finalising an official joint letter with RAOT. Members interested in joining the Thailand GAP project, specifically in Chiang Rai and Bueng Kan provinces, are encouraged to contact the secretariat for further details.

The KSP task force has plans, including pilot training for smallholders in Indonesia and Thailand, along with soliciting feedback on the Rubber Wiki app.

Lastly, the Income Diversification and Rubber Agroforestry task force is organising its first agroforestry workshop of 2023, set to take place in Cote d’Ivoire at the end of October 2023.

Policy Toolbox Working Group:

The Policy Toolbox Working Group (WG) collected input on the reporting process, utilising surveys and stakeholder-specific meetings as part of the Year 1 reporting review process. This feedback played a critical role in shaping the disclosure requirements for Year 2 reporting data and will also be a central consideration in the forthcoming discussions concerning revisions to the Reporting Requirements (RR) matrix.

The WG, under the guidance of selected consultant Petra Westerlaan, submitted a proposal aimed at making the RR matrix more quantitatively oriented. This proposal is partially based on a crosswalk with other reporting frameworks like CDP Forest, GRI, and ZSL-SPOTT. The shift toward quantification is intended to simplify data aggregation and streamline the assessment of annual progress.

Additionally, Agridence has proposed the development of a digital platform and dashboard for the RR, with a focus on enhancing the process of reporting data collection and aggregation. This proposal received approval from the Executive Committee, and Agridence is slated to commence work in late October 2023.

The disclosure requirements for Year 2 reporting have been approved by WG1 and the Executive Committee, and they will be included as a Resolution for vote at the 2023 General Assembly.

Looking ahead, WG1 is preparing to revise the RR matrix based on Petra’s proposal for a more quantitative framework and in alignment with the Assurance Model. Once approved by the WG, the revised matrix will undergo circulation to the broader membership for consultation with the aim is to secure approval for the revised reporting requirements at an extraordinary General Assembly in early 2024.

Following the approval of the revised reporting requirements, the Policy Toolbox WG will proceed with the development of disclosure requirements for Year 3 reporting.

Shared Responsibility Working Group:

The Governance Framework and In-Kind Contribution components have been integrated into the Assurance Model framework, slated for voting at the 2023 General Assembly. This integration serves as a robust foundation for further discussion, particularly due to its close alignment with the KPIs.

Furthermore, the Governance Framework and In-Kind Contribution Requirements for the Shared Investment Mechanism have reached finalisation and are set for a vote at an extraordinary General Assembly in 2024.

The WG is developing a protocol in collaboration with the SCB WG. This protocol will be used to filter and evaluate proposals based on the Equity definition and stakeholder criteria as defined by the Executive Committee (EC).

Additionally, the Secretariat is in the process of creating operational guidance for the implementation of the Shared Investment Mechanism. This guidance will subsequently be shared with the Working Group.

Lastly, there is currently an open co-chair seat, and we are inviting volunteers to step forward.

Strategy and Objectives Working Group:
The Traceability Pilot Field Trials consortiums Agridence and Koltiva have presented the final reports, which have been distributed within the Risk Subgroup. 

The Risk Subgroup has extended an invitation to ASI to share the formula behind the Risk Assessment Framework. This ensures that the framework is malleable to fit the dynamics of the Natural Rubber Industry. 

Furthermore, the Risk Subgroup has solidified plans for an initial pilot trial in collaboration with ASI, focusing on the establishment of Indonesia’s national risk assessment.

The resolution for the Assurance Model has been finalised and is currently in circulation among the wider membership for voting. The Member’s Journey Model and Assurance Model Timeline are slated for voting at GA 2023. The following items have been included in the Resolution as a strong basis for future consultations and discussions following GA 2023: Shared Investment Mechanism, Assurance Model Framework, and KPIs.

The Risk Subgroup is awaiting proposals from the Basel Institute in addressing corruption within Rubber Supply Chains from the ASI Risk Tool, Reporting Requirements and doing a qualitative corruption data analysis. 

Furthermore, the Risk Subgroup anticipates developments in the Assurance Model in December 2023, before proceeding with the expansion of the Risk Tool and the pre-setting of national risk levels. This ensures that the Risk Tool is not developed in silo and is in alignment with the other components of the Assurance Model.

Lastly, the Risk Subgroup intends to conduct an analysis of the Risk Tool with the Policy Framework to further understand how granular should Risk Assessment reach. For example, is Risk Assessment sufficient on a theme level or would it be necessary to deep dive into the Policy Component level.  

Smallholders Representation and Capacity Building (SCB) Working Group:
The Thailand Agroforestry subgroup conducted a KPI workshop before the Agroforestry training in October 2023. The subgroup is gearing up to conduct the inaugural set of Agroforestry training sessions, benefiting 100 farmers in Songkhla in October 2023.

Additionally, a productive knowledge exchange session took place involving the Agroforestry-Income Diversification task force, Pak Febrius, and the Thailand Agroforestry Subgroups.

Meanwhile, the Thailand GAP subgroup successfully finalised a contractual agreement with Koltiva and will hold its kick-off meeting, marking the first meeting since the start of the project.

The HCSA-HCVN Field Trials task force presented its final report to the SCB WG for endorsement.

The Digital Knowledge Sharing Platform (KSP) task force has conducted two pre-pilot development meetings and the Rubber Wiki app was officially launched on the Google Play Store. The task force is planning a training session tailored for task force and secretariat members, focusing on the effective management of Rubber Wiki. Following the app’s official launch, the KSP contractor will organise group socialising events in Indonesia and Thailand, aimed at introducing the app and gathering valuable user feedback.

Lastly, the SCB WG is gearing up for both national and international calls with smallholder members, an essential part of the preparations leading up to GA2023.

Policy Toolbox Working Group:
During the Year 1 Reporting Review process, input on the reporting process was gathered from members through a survey and stakeholder-specific meetings. This feedback will be used to inform revisions to the Reporting Matrix and disclosure requirements for reporting Years 2 and 3, aligning with the Transparent Reporting Roadmap (TRR).

The WG selected consultant Petra Westerlaan to propose a quantitative orientation for the reporting matrix and conducting a crosswalk with other established reporting frameworks such as CDP Forest, GRI, and ZSL-SPOTT. This quantification approach is expected to facilitate data aggregation and will make evaluating annual progress easier.

The Resolution for the Disclosure Requirements for Reporting Requirements has been finalised and is will be presented to the membership for voting. 

Lastly, quantification from Petra Westerlaan has been completed and the Working Group will embark on further consultations with the Working Group to prepare the updated Reporting Requirements to be approved at an extraordinary GA.

Shared Responsibility Working Group: The Shared Investment Mechanism (SIM) Resolution has been subsumed under the Assurance Model Resolution for approval in the 2023 GA, as a strong basis for further consultation and discussion after the GA. This is due to the integral role of the KPIs, which has not been finalised, in the implementation of the SIM. 

Value and benefits per category to be defined.

The Secretariat is looking into the development of guidance for the operation of the SIM.

Additionally, there is a co-chair seat open, and we are calling for interested volunteers.

Strategy and Objectives Working Group:

In recent developments within the Risk Subgroup, significant progress has been made. Consortiums Agridence and Koltiva have delivered their conclusive reports, which have been duly circulated among the members. The Risk Subgroup extended an invitation to ASI, requesting insights into the formulation of the Risk Assessment Framework. This move aims to ensure the adaptability of the framework to the many different risk tools that exist in the  Natural Rubber Industry. Collaborative efforts are also underway, as the Risk Subgroup and ASI work together on an inaugural pilot trial, focusing on setting Indonesia’s national risk parameters.

Meanwhile, significant strides have been taken in the realm of the Assurance Model Taskforce. Resolutions have been shared within the Strategy and Objectives Working Group, inviting constructive feedback. The completion of the Due Diligence System falls under the purview of ZSL, marking a substantial accomplishment.

The Risk Subgroup is engaging in early-stage discussions with the Basel Institution, exploring a potential collaboration concerning corruption risks within the supply chain.

Further negotiations between the Risk Subgroup and ASI encompass a range of key initiatives, including the preconfiguration of National Risk Levels, the refinement of the Risk Tool’s questionnaire, and harmonising National Risk levels with other established risk assessment tools used within the GPSNR community. ASI is entrusted with designing the GPSNR Assurance Model; and a draft Framework has been shared.

Smallholders Representation and Capacity Building (SCB) Working Group:

In recent updates, several advancements have occurred. The Indonesia National Subgroup has reported quarterly progress to the SCB WG for the GAP Coaching and Disease Fighting projects.

Meanwhile, in Thailand, the National Subgroup has completed proposal evaluations, leading to the selection of Koltiva for the Thailand GAP Coaching project.

A notable achievement is the official endorsement from the SCB WG for the final recommendations report of the Smallholders Policy-Equivalent (SPE).

Concurrently, the Agroforestry-Income Diversification taskforce has successfully finalised contractual arrangements and is actively overseeing projects in Indonesia.

Preparations are underway in the Thailand Agroforestry subgroup for upcoming training discussions scheduled for October 2023. Similarly, the Thailand GAP subgroup is taking steps to initiate its project.

On the technological front, the Digital Knowledge Sharing Platform (KSP) task force is making progress in developing features, anticipating the forthcoming piloting phase.

The HCSA-HCVN Field Trials task force is focused on refining the final report for subsequent submission to the SCB WG.

Looking ahead, the Agroforestry-Income Diversification Taskforce is gearing up for a series of agroforestry workshops planned for 2023-2024.

Cross-group collaboration is evident as the Thailand Agroforestry subgroup plans a knowledge exchange session with the Agroforestry-Income Diversification taskforce and Indonesian smallholder, Pak Febrius SW, with a focus on Rubber Agroforestry.

Lastly, the SCB WG is proactively organising calls with smallholders from diverse countries as part of their preparations for the upcoming October 2023 General Assembly.

Policy Toolbox Working Group:

A resolution along with its corresponding Annex was drafted, aiming for Year 2 Disclosure Requirements. These were slated for submission to the 5th General Assembly (GA).

Consultant Petra Westerlaan presented a proposal to the WG that outlined revisions to the GPSNR Reporting Framework. This proposal resulted from a comprehensive comparison with other reporting frameworks, including CDP Forest, GRI, and ZSL-SPOTT. The proposed revisions emphasised quantification, which would enhance data aggregation and simplify the assessment of annual progress.

Subsequent to the GA, the WG will scrutinise Petra’s proposed revisions and arrive at a consensus on changes to the Reporting Matrix.. Sufficient lead time is essential for companies to prepare their Year 3 data.

Once agreement is reached on revisions to the Reporting Matrix, the WG will proceed to define the disclosure requirements for Year 3 reporting. This sequential approach ensures a methodical and informed evolution of the GPSNR reporting process.

Shared Responsibility Working Group: 

During the face-to-face meeting, the Governance and guiding principles were introduced. Manufacturers are in the process of obtaining internal approval for the Governance Framework. They will subsequently furnish a final version for approval from the GPSNR Executive Committee (EC) and the General Assembly.

A draft resolution was shared with the Working Group (WG) and received approval for distribution to members for feedback.

Collaborating with the Capacity Building WG, the WG is developing a protocol to screen and assess proposals. This evaluation process will be based on the Equity definition and stakeholders as outlined by the EC.

One of the  co-chair seats in the Shared Responsibility WG is available, and a call for volunteers has been initiated.

Sri Trang Agro-Industry joins 23 other rubber producers, processors and traders at GPSNR to make the industry-wide transition to sustainable natural rubber 

We are pleased to welcome Sri Trang Agro-Industry as the newest member of GPSNR’s growing community.

The Global Platform for Sustainable Natural Rubber (GPSNR) proudly announces the addition of Sri Trang Agro-Industry Public Company Limited (STA) as its newest member in the Producers, Processors and Traders category. STA, a leading fully integrated natural rubber company established in 1987, brings with it a solid commitment to the industry’s transition towards the sustainable and equitable production of natural rubber at scale. With large-scale rubber plantations covering almost 7,000 hectares across 19 provinces of Thailand, STA plays a significant role in the global natural rubber market. The company’s membership in GPSNR underscores its dedication to fostering a more sustainable and responsible natural rubber industry.

“We are thrilled to welcome Sri Trang Agro-Industry Public Company Limited to GPSNR,” said Stefano Savi, Platform Director of GPSNR. “Given the company’s scale and outreach, we look forward to their insights and contributions to important industry-wide processes on sustainable and equitable production currently underway at GPSNR, like our assurance model and shared investment mechanism.”

Nattee Thiraputhbhokin, Chief Marketing Officer of STA, stated, “Joining GPSNR reflects our unwavering commitment to advancing sustainable practices in the natural rubber industry. In addition, to the ever-evolving world of rubber production, STA emerged as a trailblazer with its groundbreaking Sri Trang Ecosystem. This digitalized, transparent, and sustainable framework showcased STA’s unwavering commitment to advancing sustainability in the natural rubber industry. With traceability ingrained in every step, from rubber tree cultivation to the delivery of traceable products, the ecosystem sets a new standard for better accountability. Joined by other industry leaders under the Global Platform for Sustainable Natural Rubber (GPSNR), STA aims to forge a more sustainable and equitable future for all stakeholders, inspiring a transformation that resonated far beyond their business borders.”

STA joins over 290 GPSNR members composed of tire makers, natural rubber producers, processors, traders, civil society members, and end-users in driving positive change and shaping the future of the natural rubber sector.

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:
Abby Ng
Membership Outreach and Communications Associate 
Email: abigail@gpsnr.org

Strategy and Objectives Working Group:

The Key Performance Indicators (KPIs) were successfully agreed upon during the June Hybrid meetings, and are awaiting review and approval for the OEMs KPI. 

In pursuit of defining targets related to member’s water withdrawal within the KPIs, surveys have been sent out. The results from the water withdrawal surveys will be analyzed and integrated into the KPIs.

ASI has been selected to develop the Assurance Model for GPSNR and has commenced discussions. ASI’s assignment for the Assurance Model involves presenting a framework proposal before the 2023 General Assembly.

The completion of the first consultation for the Due Diligence System (DDS) was completed during the June Hybrid meetings. The second round of consultations for the Due Diligence System by ZSL has been initiated. A teleconsultation, scheduled for the end of July, will provide an opportunity to discuss the feedback obtained. 

The Risk Subgroup has been working on the Traceability Pilot Field Trials, and consortiums Agridence and Koltiva have provided their midpoint updates.

ASI has finalized the initial version of the Risk Assessment Framework. Feedback has been collected to further enhance its effectiveness. Risk subgroup has extended an invitation to ASI to disclose the underlying formula of the Risk Assessment Framework. The initial trial of pre-setting Indonesia’s Risk level using the ASI risk tool has been completed. The results will aid in evaluating the feasibility of setting risk levels for 20 countries, with members’ feedback actively being incorporated to enhance user-friendliness.

Discussions between the Basel Institute and the Risk subgroup have commenced, this collaboration aims to investigate corruption risks within the supply chain.

The submission of Agridence and Koltiva’s final reports for the Traceability Enhancement will happen at the end of July. Subsequently, work will commence on fleshing out the Enhancing Traceability Report.

Smallholders Representation and Capacity Building (SCB) Working Group:

The discussion on Agroforestry Workshops for 2023-2024 has been successfully finalised. The Agroforestry-Income Diversification Taskforce will complete the contractual signing and then proceed to kick-start the preparation for agroforestry workshops in 2023-2024.

The HCSA-HCVN Field Trials task force has reviewed and provided feedback on the final report submitted by Daemeter. Additionally, the HCSA-HCVN Field Trials task force will revise and prepare to submit their final report.

The Thailand Agroforestry project has presented a progress report covering March to May 2023. The team is actively preparing for upcoming training sessions with smallholders.

The Indonesia National Subgroup will present quarterly progress reports to the SCB WG for the GAP Coaching and Disease Fighting projects in early August. The Thailand National Subgroup is currently evaluating proposals for Thailand GAP Coaching.

The Smallholders Policy-Equivalent (SPE) Taskforce is aiming to obtain endorsement from the SCB WG for the final recommendations of their report in early August.

Policy Toolbox Working Group:

The Transparent Reporting Requirements (TRR) for Year 2 have been successfully agreed upon and are now pending review and approval for the OEM category.

Petra Westerlaan, the selected consultant for the Working Group (WG), proposed a quantitative orientation for the reporting matrix. This quantification approach will simplify data aggregation and streamline the evaluation of annual progress. The WG has received Petra’s proposed reporting matrix and is all set to initiate teleconsultations in the first week of August. These sessions will facilitate valuable discussions on the feedback received, ensuring achievement of the most effective reporting system.

In addition, Agridence has presented their proposal for a new reporting requirements platform. They will keep the Working Group informed about its testing, launch, and any subsequent updates.

Shared Responsibility Working Group: 

During the face-to-face meeting, the Governance and Guiding principles were presented, highlighting their importance in shaping the future direction of GPSNR. Manufacturers are now required to seek internal approval regarding the Governance Framework and subsequently provide a final version for approval to the GPSNR Executive Committee (EC) and General Assembly.

The SR WG is actively engaged in defining an inclusive shared investment framework, encompassing various forms of contribution such as in-kind support, financial contributions, and external funding. The outcomes of discussions at the Manufacturers category level will play a crucial role in shaping this framework.

Collaborating with the Secretariat and other WGs, the SR WG is committed to revamping discussions on data sharing and value transfer, recognizing their significance in achieving our objectives. These discussions will seek to optimize the sharing of data and the value derived from it.

To provide clarity and transparency, the WG aims to define the value and benefits associated with each category within GPSNR, ensuring that all stakeholders are aware of the advantages and opportunities available.

Furthermore, the WG, in collaboration with the Capacity Building WG, is working on developing a protocol to filter and evaluate proposals based on the Equity definition and the stakeholders identified by the EC. This process will ensure fair and comprehensive evaluation of proposals.

Lastly, an open co-chair position is available, and volunteers are welcomed to contribute their expertise and leadership to drive the WG forward. If you are interested in taking on this role, please step forward and join us in this important endeavour.

On Wednesday, 19 April 2023, the European Union approved the upcoming Deforestation-Free Regulation (EUDR) to prevent companies from placing products linked to deforestation onto the EU market. As part of the wider vision of the EU Green Deal, it will demand companies who import rubber or rubber-based products (e.g., tires) to verify that their supply chain is deforestation-free. It’s a push towards an era of environmental accountability, yet it also sparks debates about the path forward for the rubber industry.

The EUDR requires companies to have traceability to the farm level, including geo-location data and proof of land legality. According to the regulation, every plot below 4 hectares requires at least a GPS point coordinate, while plots above 4 hectares must have a polygon.

Fulfilling these traceability requirements is no small feat. There is concern from the industry that smallholder farmers may be unintentionally excluded from global sustainable supply chains. Ensuring smallholder farmer inclusion requires a holistic sustainability approach.  There is no doubt that the rubber industry has begun moving towards sustainable rubber sourcing through combined industry efforts like the Global Platform for Sustainable Natural Rubber (GPSNR). However, the reality is that most imported rubber to the EU currently does not meet the regulatory requirements as the industry lacks traceability to the farm level. As 85% of the global natural rubber supply is supplied by approximately 6 million smallholder farmers, the implications of this regulation could be far-reaching and severe, particularly for these smallholder farmers.

However, there is a lot of hope.

Firstly, even though it might seem challenging, traceability to the farm level is doable – even for the rubber industry. This has been demonstrated in a GPSNR-funded farmer training and coaching project primarily focused on supporting smallholders to apply Good Agriculture Practices (GAP). Koltiva, the company I am working for and who was selected to be the implementing partner for this project, has mapped more than 4,000 farmers and their farms to help them to prepare for the EUDR in less than a year.

Secondly, we believe that traceability to the farm is scalable. In our work with clients in 51 countries, we were able to map almost 1 million smallholder farmers through our KoltiTrace platform. Platforms such as KoltiTrace allow companies to map and verify their supply chain, including transaction traceability from Seed to Tire and deforestation-free analysis.

Finally, EUDR could have a long-term positive impact on smallholder farmers. Currently, many rubber farmers do not have proper land titles. Due to the EUDR geolocation requirements, many smallholders will, for the first time, have access to a map of their own plantation, allowing them to legalize their land.

And it doesn’t stop there. Smallholders have largely been invisible in global supply chains. Traditional development programs have tried to engage them, but they have not reached the expected results. Many smallholders still have no access to knowledge, no access to capital,  and soon will also be excluded from the carbon economy.

I believe that it’s possible to bridge these gaps. Traceability to farm level and digitalizing the first mile of agricultural value chains can lay the foundation for holistic sustainability interventions. Enabled by technology and data, the sector can equip farmers with critical knowledge, improve their access to finance, actively support farmers to apply low-carbon practices and enable them to reap the benefits of the growing carbon economy.

While traceability cannot be achieved overnight, the rubber industry is in a unique position. At GPSNR, the major industry players are sitting at one table. Through combined efforts and data-sharing agreements of shared supplier data, the rubber industry can become a leading example of how to meet the EUDR.

About the Author:
Luca Fischer is Koltiva’s Program Manager, leading Koltiva’s boots-on-the-ground implementation projects in the rubber sector globally. He bridges the gap between the client, product, and field teams.

Luca has over five years of work experience in sustainable sourcing, smallholder livelihood, and climate-smart agriculture development. He graduated with an M.Sc. in Sustainable Resource Management from the Technical University of Munich, Germany.

About Koltiva (click here for more information)
Established in 2013, Koltiva is a leading agritech company for enterprises to make their global supply chains traceable, inclusive, and climate-smart. Backed by Koltiva’s human-centered technology with boots-on-the-ground professional service, Koltiva supports some of the largest multinational companies by digitizing and verifying global supply chains, focusing on enhancing traceability, inclusiveness, and sustainability. Koltiva combines triple-tech (AgriTech, FinTech, and ClimaTech) to improve producers’ outcomes and profitability while building more sustainable supply chains.