GPSNR Working Groups Update: June 2023

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Strategy and Objectives Working Group: 

The Traceability pilot field trials for the Risk Subgroup, led by consortiums Agridence and Koltiva, are now in full swing. Agridence provided a midpoint update during the June Hybrid meetings, highlighting their progress thus far.

Looking ahead, the Risk Subgroup is actively strategizing the next steps for ASI’s deliverable on the Risk Assessment Framework. This includes conducting internal piloting and aligning the tool with GPSNR commissioned studies to identify any potential gaps.

In an effort to standardize country levels within the tool, the Risk Subgroup will be issuing a Request for Proposal (RFP) to engage consultants who can contribute their expertise. Furthermore, the Risk Subgroup is in the preliminary stages of discussions with the Basel Institution, exploring a potential collaboration to address corruption risks in the supply chain. 

The Assurance Model Task force will convene to receive updates on the alignment of Key Performance Indicators (KPIs) and the due diligence system, ensuring that progress is being made and objectives are being met. In order to create an Assurance Manual under the Members Progress Model, an RFP will be crafted and sent to consultants. This step aims to gather the necessary input and expertise to develop a comprehensive manual.

 

Smallholders Representation and Capacity Building (SCB) Working Group: 

The Smallholders Policy-Equivalent (SPE) Taskforce has successfully presented the final recommendations to the SCB WG, marking a significant milestone in their work. They are actively working towards obtaining endorsement from the SCB WG for their final recommendations as outlined in the report.

The HCSA-HCVN Field Trials have reached an important stage, with the preliminary final report being submitted for review and assessment. The HCSA-HCVN will soon submit the final report, marking the completion of this endeavor.

In an effort to promote knowledge sharing, the digital Knowledge Sharing Platform (KSP) Taskforce organised a meeting on 24th May 2023 for SCB WG members. The objective was to facilitate a better understanding of the KSP, and the service provider has already begun developing new features for the platform.

The Indonesia National Subgroup has taken the initiative to prepare quarterly progress reports for the GAP Coaching and Disease Fighting projects, providing updates to the SCB WG.

Meanwhile, the Thailand National Subgroup is currently in the process of evaluating proposals received for the Thailand GAP Coaching project. The deadline for proposal submissions is 30th June 2023.

The Agroforestry-Income Diversification Taskforce is working to finalize the schedule of workshops planned for 2023-2024.

Lastly, the SCB WG will continue to oversee all ongoing projects.

 

Policy Toolbox Working Group: 

In order to enhance the reporting process, input has been collected from members through a survey and stakeholder-specific meetings as part of the Year 1 Reporting Review process. The feedback received will play a crucial role in informing revisions to the Reporting Matrix and disclosure requirements for Years 2 and 3, as outlined in the Transparent Reporting Roadmap (TRR). Furthermore, discussions are underway to reach an agreement on the TRR for Year 2 reporting, with the Working Group currently finalizing updates received from the OEMs. To reflect the proposed changes to the reporting matrix, the Reporting Guidance will be updated accordingly, providing clear and comprehensive guidelines for reporting.

The Working Group has carefully selected consultant Petra Westerlaan to propose a quantitative orientation for the reporting matrix. This includes conducting a crosswalk analysis with other established reporting frameworks such as CDP Forest, GRI, and ZSL-SPOTT. The integration of quantification will not only facilitate data aggregation but also simplify the evaluation of annual progress. The consultant’s proposed revisions to the reporting framework will be evaluated and decided upon, and recommendations will be made to improve the reporting process and timelines.

In parallel, the Compliance Panel Terms of Reference (TOR) and operational guidance are being finalized based on the Assurance Model, ensuring a robust framework for ensuring compliance and accountability.

 

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 endeavor.

By establishing effective governance, inclusive investment frameworks, and clear protocols, we are working towards a sustainable and equitable future for the natural rubber industry. Your participation and engagement are vital to our collective success.

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

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.

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Smallholders Representation Working Group Update – July 2019

Since its establishment a few months ago, the Smallholders Representation Working Group has been working consistently and collectively to accomplish its mission. The group has been actively involved in understanding, strategizing and testing the methods by which the platform can ensure adequate and relevant smallholder inclusion. 

In its work to date, the group has selected 11 Working Group members as “Country Champions” who have extensive regional knowledge regarding the rubber supply chain. These members have been in charge of conducting interviews of various smallholder associations and organizations in their assigned country or region. The Working Group also refers to these “Country Champions” as “GPSNR Ambassadors” because of the role they play in creating awareness about the platform. In the past few months, they have helped promote the platform internationally, specifically in Natural Rubber producing countries, by interacting with several organizations, companies and government authorities in different regions of the world. This in turn has helped create curiosity and interest regarding the platform with local stakeholders and in the international rubber community.  

To further this process, the Working Group is currently planning on organizing a series of workshops in various rubber producing regions of the world, including Indonesia, Thailand and Vietnam in Asia Pacific, Brazil in Latin America and Cote d’Ivoire, Ghana and Liberia in Africa. The objective of these workshops will be to understand the local needs and motivations of smallholders and onboard organizations representing  smallholders to join the platform. The Working Group agreed these workshops will be a chance to facilitate an open and constructive discussion between the participants, including smallholders, smallholder representatives and other rubber stakeholders. By organizing multiple workshops in different regions of the world, the Working Group is trying to ensure appropriate coverage of the vast and diverse global natural rubber supply chain.  

Through these workshops and the onboarding work done by the Country Champions, the group will be able to identify relevant smallholder representatives, in view of onboarding them as GPSNR members, to ensure smallholders representation in the GPSNR governance is achieved by the next General Assembly in March 2020.

It has been encouraging to see volunteer members of the Working Group actively participate and contribute to fulfill the tasks and responsibilities assigned to the team. Going forward, the Working Group Co-chair expects more involvement of the members as the group implements its developed action plan of organizing regular events like the regional workshops aimed at the betterment of Rubber Smallholders.

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Step 1: Commitment and Reporting