GPSNR Working Groups Update: June 2022

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.

Strategy and Objectives Working Group

The assurance model taskforce, which sits under the umbrella of this working group, worked on establishing KPIs, GPSNR and Company targets, and tasking the KPIs to other working groups, categories and members. Its other subgroup on risk is currently working on a proposal for the definition of polygons in the EU Deforestation Regulation based on a request from GPSNR member ETRMA. Th subgroup also has two new co-chairs – Maggie Fitzherbert from ZSL and Ayako Itoh from Bridgestone.

Smallholder Representation Working Group

After completing its first round of pilot agroforestry workshops in Indonesia, the working group has its next round planned in Cambodia starting this month. Subsequently, they are preparing for country-based focus group discussions on the Smallholders Policy Equivalent and for the GPSNR-HCSA Smallholder Toolkit Field Trials. They are also working on processing smallholder applications from Liberia and Cambodia.

Policy Toolbox Working Group

The group is working on finalizing the TORs for the Year 1 Reporting Review to be conducted in the first quarter of next year. They are also assessing if any changes to reporting framework and its details (i.e. process, extensions, questions) are needed based on the Year 1 Reporting Review results.

Capacity Building Working Group

The group is currently evaluating proposals to appoint a software developer for the second phase of the GPSNR Knowledge Sharing Platform. They have kicked off the Disease Fighting Project with SNV-IRRI in Indonesia, after having recently completed the first milestone of the SNV-Proforest GAP coaching in the country. They continue to seek members’ funding for capacity building projects in Indonesia (second stream of disease fighting) and Cote d’Ivoire (training centres). To know more, you can find the project details here.

Shared Responsibility Working Group

The group is working on the deliverables discussed for each of its sub working groups during the in-person meetings, and will present findings to the membership on 15th November 2022.