GPSNR Working Groups Update: April 2021 (Members Version)

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April 26, 2021

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Empowering Smallholder Farmers: The Path to Deforestation-Free Rubber Supply Chains to Meet the EUDR

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.

GPSNR Secretariat July 4, 2023

News

GPSNR Working Groups Update: May 2021

It’s been a busy few months for all the working groups! Here are some of their key updates.

Strategy and Objectives Working Group

In April 2021, the Strategy and Objectives working group completed a significant piece of work by finalising the Desired State Document. This month, the group has received ten key recommendations on equity from the Equity Sub-working group.

These include integrating equity-centric Principles, Practices and Priorities across GPSNR’s procedures and work programs and recommending member companies to do the same. You can find all the recommendations here.

These recommendations go beyond the work of the group itself and cover the role of equity in most GPSNR interventions.

Proforest with Liza Murphy have also submitted the second draft of the Environmental Risk Assessment of Natural Rubber Production and Production and Processing to the group.

Smallholder Representation Working Group

Since August 2020, the smallholder onboarding process has been integrating smallholders into GPSNR’s structures and functions. This month, the smallholder working group conducted a r satisfaction survey for the 28 smallholders within GPSNR to assess the successes and challenges of the smallholder onboarding process.

Of the 28 smallholders at GPSNR, 16 responded to the survey. While structural issues like the digital divide, access to technology and language barriers are causes for concern in smallholder engagement, the survey results were encouraging.

15 out of 16 smallholders responded positively on being asked if they better understood GPSNR’s aims after the onboarding process. They also offered plenty of constructive feedback to improve the onboarding experience for future members. These include improving communications and information sharing, clearer rules and organisational goals, and ways to enhance smallholder engagement on the platform. However, the information that remains unclear for a majority of the respondents centers around the rules of membership and goals of the smallholder representation working group. These will be addressed in the new onboarding programmes that the working group is developing.

The group has also reached out to Thai farmer associations to recruit new members from Thailand, and is also preparing for a workshop to recruit smallholders in Cambodia. At the same time, the group continues to seek responses from the smallholders who haven’t yet completed the survey.

Policy Toolbox Working Group

After receiving some strong proposals for the development of guidance for the Compliance Panel operations, the Policy Toolbox working group is now reviewing these and will have a finalist in the coming few weeks.

For context, GPSNR Statutes mandate the creation of an independent Compliance Panel to ensure that members conform with Statutes, Code of Conduct, decisions, standards and processes, and make recommendations to the GPSNR Executive Committee.

After an extensive selection process, the group has also chosen ZSL to work on the Reporting Requirements development as they have significant experience in similar projects. Simultaneously, they have completed the first round of focus group calls and surveys for the development of the implementation guidance.

Capacity Building Working Group

After presenting a funding mechanism of capacity building projects to the Executive Committee earlier this month, the Funding Taskforce in the Capacity Building working group has finalised the process and will be broadcasting it to all members in July 2021.

This funding mechanism is a temporary measure which will support GPSNR’s capacity building initiatives while the larger funding model is finalised.

At the same time, the Good Agricultural Practices (GAP) taskforce has finalised GPSNR’s GAP principles.

Traceability and Transparency Working Group

The group has put together a draft input on the Implementation Guidance from a traceability perspective this month.

After conducting discussions on traceability and data requirements for GPSNR, this is also developing data collection and reporting standards together with the Policy Toolbox working group.

Shared Responsibility Working Group

Having finalised the Implementation Framework for Shared Responsibility, the group has finalised a first round discussion of the problem statements for the natural rubber supply chain.

This has allowed the group to identify the causal pathways and root causes of the issues affecting shared responsibility investment, supply chain data transparency and reinforcing sustainable supply chains (key focus areas for the group). With this step completed, the group is now looking at proposing solutions for these issues that GPSNR can implement. This first draft of solutions will be soon shared with the different categories members for an initial informal consultation.

GPSNR Staff May 25, 2021