Continuing the Conversation with GPSNR Topic Talks – The Sumatran Rubber Pilot

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The GPSNR Topic Talks webinar series is organised by the GPSNR Secretariat and presented by GPSNR members. The webinars cover several themes around sustainability and the global natural rubber supply chain.

The Topic Talks series continued on the 17th of March with Dr. Michael Steuwe from WWF US and Gerald Tan from HeveaConnect presenting on the Sumatran Rubber Pilot.

The Sumatran Rubber Pilot (SRP) is a voluntary, self-financed collaboration of rubber supply chain players and technical experts interested to facilitate the production and trade of transparent and sustainable natural rubber. The participating processing mills, tire makers, civil society organisations, technology providers and financial institutions have three major objectives:

  • Demonstrate how rubber’s downstream can work together to make its upstream more sustainable.
  • Identify, test, evaluate, and report on what it takes to achieve, and how to pay for transparent sustainable natural rubber supply chains.
  • Develop “Proof of Concept” approaches from and for GPSNR discussions on policy requirements and implementation, transparency and traceability, capacity building, and shared responsibility.

Within a few months of the project launch in July 2020, SRP’s four rubber processing factories, managed by the Halcyon Agri and ITOCHU groups, had traced up to 1 year of rubber supplies to the village and/or sub-district of origin based on self-declarations by their supplying dealers. These approximate origins of the rubber sources were filtered through WWF Indonesia’s new environmental risk assessment and management tool which identifies High Conservation Value Areas and High Carbon Stock Forest for the whole island of Sumatra. The results allow processors and their respective downstream supply chains to focus their sustainability work with farmers on priority areas.

The SRP partners are enhancing dealer self-declarations with digital apps such as CropIn and Hamurni to assess farms’ potential environmental, social, equity, labour and legal issues accurately and to address them.

As GPSNR adopts principles and criteria for what constitutes transparent and sustainable rubber, the risk assessment algorithms will be adapted to flag compliant rubber accordingly. This is increasingly important for rubber’s downstream as companies’ Environmental, Social, Governance (ESG) impacts are becoming key evaluation criteria for investors and financiers who will demand the disclosure of the relevant information. In a parallel development, new supply chain laws will require major companies like the world’s car and tire makers to be responsible for the environmental and social impacts of their supply chains. The collection and analysis of detailed data on upstream supply chains will have to become an essential part of doing business and SRP partners are working to respond appropriately to these changes.

While continuing to focus on increasing the resolution of tracing rubber to its origin and collecting the respective data, SRP will now begin finding ways to best address the social, equity, labour, and legal issues that may have come up in supply chain assessments. 

The SRP is a voluntary, open and flexible platform of like minded partners interested in testing a diversity of approaches to achieve supply chain transparency and sustainability, and welcomes interested rubber supply chain actors to reach out and discuss how they might join the collaboration. GPSNR members interested in participating in the SRP should reach out to the GPSNR Secretariat to get involved in the project.

More To Explore

News

Stretching the conversation about sustainable natural rubber

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.

News

Secretariat Update – September 2019

This update was prepared by Assel Mussagaliyeva, Industry Relations and Academic Projects Manager, Essec Asia Pacific.

ESSEC Asia Pacific partnered with the Global Platform for Sustainable Natural Rubber for their first Global Manager in Asia (GMA) project. The GMA Project included diverse multinational companies and startups with strong Asian core: International Finance Corporation (IFC Fintech Group), Grab for Business, ACT Genomics, Creatella Ventures and GPSNR. Involving 148 ESSEC Master in Management students, the Project took place on 1 July – 11 September 2019, followed by the Final Jury.

The project results were in line with GPSNR priorities in the three Asian markets. The 6 student teams under the close guidance of Stefano Savi and Kobrat Sawasdivorn explored the challenges of the smallholder farmers affecting equity of the rubber supply chain in Thailand, China and Indonesia. The results of the student research will be presented to the GPSNR Working Groups.

Assel Mussagaliyeva, Industry Relations and Academic Projects Manager, said it was a good project both from a teaching perspective as well as practical experience for the students. Firstly, it was hands on experience challenging students to think ‘out of the box’ as it involved multiple layers: a variety of stakeholders, unfamiliar context, lack of industry knowledge and limited country data. Secondly, it was a great chance for the students to work on a big picture issue, especially in today’s world of climate change challenges. The project itself was well focused and narrow enough for the students to have an opportunity to make a tangible difference.

“ESSEC Asia Pacific is grateful to GPSNR for our collaboration on multiple levels,” said Mussagaliyeva. In March 2019, GPSNR participated at the ESSEC APAC Talent Day and offered internship for the Global BBA student Tanmay Daga. Following that, Stefano Savi participated in the first ESSEC APAC student-led TedX event as an invited speaker on sustainability. Soon after, the GMA Project scope was discussed.

“We look forward to working with GPSNR in the future,” said Mussagaliyeva. The mission of ESSEC Business School is to create and disseminate cutting-edge knowledge, to train and develop bold pioneers and influential leaders for both the business world and society. We encourage the students and programme participants to anticipate – and meet – the economic, managerial, social, environmental and ethical challenges of an increasingly uncertain world. These values align with GPSNR mission as sustainability is an integral part of responsible innovation. 

The Secretariat has also published the executive summary of minutes of each working group in the “News and Publications” section of the website. All members of the platform can login to the website to view the documents under the Members Only section. There are currently 2 working groups, the Strategy & Objectives working group chaired by James Laimos of Goodyear and the Smallholders Representation working group chaired by Ulrich Antoni of Pirelli. The executive summary of each working group will be updated on a bi-weekly basis. If you have any issues accessing the website, please send us an email at info@gpsnr.org.

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