GPSNR unveils first ever collective grievance mechanism in the natural rubber industry

Deforestation, land grabbing, and human and labour rights violations have been associated with the production of natural rubber. In order to transform the global natural rubber supply chain into a fair, equitable and environmentally sound one, it is crucial that we work to reduce such social and environmental risks. This is by no means an easy feat with about 6 million smallholder farmers producing around 85% of the world’s natural rubber; the complexities of the supply chain make it difficult for buyers to ensure that sustainable practices are employed for rubber cultivation and processing. Recognizing the importance of enhancing traceability and transparency in the natural rubber supply chain to support the identification and mitigation of social and environmental risks, GPSNR established the Traceability and Transparency Working Group.

Over the past few months, the Working Group has commissioned two studies around traceability and transparency tools and technology. The reports were submitted by the consultants at the end of October 2020. The findings from each report are summarized below.

Spatial Data & Mapping Tools for Detecting Deforestation and Threats to HCVS Areas in Rubber Production Landscapes

Report developed by Zoological Society of London (ZSL)

This report reviews a variety of spatial mapping tools and approaches which may be employed by GPSNR and its members to address deforestation and degradation risk in rubber supply chains.

The key recommendations from this study are that GPSNR members should pool resources to collectively commission landscape-level HCV and HCS screening for key rubber-producing countries and these should be updated periodically. Spatial data maps from this process should be made publicly available to encourage cross-sectoral collaboration on tackling deforestation.

HCV/S datasets may then be integrated into satellite monitoring platforms and combined with near-real time monitoring of deforestation and forest degradation. This will allow accurate spatial analysis of the impacts of rubber production in key forested landscapes. GPSNR members may select different satellite monitoring tools or service providers, based on their own needs and budget. For upstream actors closer to the source, satellite monitoring may allow for preventative measures to be taken at the early stages of deforestation.

The full Executive Summary can be viewed here.

Review of Transparency & Traceability Tools and Solutions

Report prepared by e-Audit Hong-Kong Ltd

This report presents options on supply chain transparency and/ or product traceability solutions that GPSNR may consider as well as recommendations to select the most suitable transparency/traceability solutions for the GPSNR initiative.

A range of solutions currently implemented in commodity industries similar to the natural rubber industry were reviewed and evaluated, resulting in the identification of several key elements that will need to be considered to select the most suitable and cost-efficient solution.

The report also considers three potential infrastructure options (centralized, hybrid and decentralized) that should be considered as they have profound implications on the range of supply chain transparency and product/batch traceability solution(s) that GPSNR may consider to adopt.

This report concludes that the technology currently available makes it possible for all GPSNR key requirements to be integrated into one single solution. However, such a centralized solution may be costly and cumbersome to implement. At this stage of development of the GPSNR initiative it is recommended that GPSNR starts implementing a more flexible hybrid solution, with a centralized infrastructure/ data hub focused on reporting and monitoring of clearly defined performance KPIs, that can be connected through APIs to existing field level risk assessment, risk mapping and traceability solutions currently implemented by GPSNR members.

The full Executive Summary can be viewed here.

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.