GPSNR Working Groups Update: March 2021

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Strategy and Objectives Working Group

The S&O Working Group has received inputs to the platform Theory of Change from the Smallholders Representation, Capacity Building, and Traceability and Transparency Working Groups. A task team from the S&O Working Group will now work to synthesize these different contributions into a single document. This compiled Theory of Change template will then be developed into the platform Theory of Change through a workshop which will involve representatives from all the working groups.

The Equity Sub-Working Group completed a summary of the Living Income studies that the platform commissioned in 2021 and presented the summary through a webinar. The Equity Sub-Working Group will now work to develop recommendations on how GPSNR can address priority risks and boost equity in the value chain.

‘Policy Toolbox’ Working Group

The Policy Toolbox Working Group has selected a combined consultant team of Proforest and Are We There Yet to lead the development of the Implementation Guidance for GPSNR. The development is expected to be a consultative process that concludes with a set of draft guidance that will be ready by July 2021.

To facilitate consultation on the Implementation Guidance, the Working Group will set up category-specific focus groups that members are encouraged to join. The focus groups will meet twice to review the draft guidance and provide feedback and inputs to improve the document. Each focus group is only expected to meet twice and members are only required to spend a few hours before each meeting reviewing the draft documents. The focus groups will be set up in the following manner:

Focus Group 1
Growers
Traders of Raw Materials

Focus Group 2
Processors
Traders of Processed material

Focus Group 3
Tire makers and other manufacturers

Focus Group 4
End users (incl. car makers and other downstream stakeholders).

In line with the assessment of policy documents against the policy framework, the Secretariat has collated company policy documents that were submitted and will proceed to review the policy documents submitted for review. The Secretariat has received responses from all 29 ordinary member companies that were required to submit documents and will spend the next month assessing the submissions.

‘Capacity Building’ Working Group

The Capacity Building Working Group has created three separate task forces that will work on working group tasks. The first task force will focus on developing mechanisms to measure impacts of capacity building activities, the second task force will develop a strategy to attract and recognize GPSNR members’ funding of capacity building activities, and the final task force will develop systems to ensure that the national sub-groups tasked with implementing capacity building activities in each country remain aligned with the broader working group. In addition to the Good Agricultural Practices Task Force, the Working Group now has four Task Forces that will work to deliver on their tasks in the coming months.

‘Traceability and Transparency’ Working Group

The Traceability and Transparency Working Group will continue to meet in its sub-groups to develop recommendations on minimum benchmarks for traceability tools and data sharing in the platform. With the submission of the Working Group’s input to the Theory of Change, the Working Group is pleased to announce that its first sub-group has completed the assigned tasking and will no longer meet.

Smallholder Representation Working Group

The Smallholder Representation Working Group has now onboarded smallholders from Indonesia and Vietnam into the Working Group. The Working Group has also divided into two groups within the working group. The first sub-working group will work to develop a strategy to onboard smallholders from countries that are not represented in GPSNR yet. The second group will work to deepen engagement with smallholders who are already members of the platform and also develop strategies to improve representation among minority groups in countries that are already represented in GPSNR

More To Explore

Members

Seeing Through to a Solution: Traceability and Transparency Tools and Technology Studies (Members Version)

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.

GPSNR members can read the entire report 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.

GPSNR members can read the entire report here.

News

Updates on the GPSNR Baseline Reporting Requirements Pilot Test

In early June 2020, GPSNR member companies were invited to participate in pilot testing a set of draft Baseline Reporting Requirements developed by the Policy Toolbox and Implementation Guidance Working Group. Along with the newly approved Policy Components, the Baseline Reporting Requirements will constitute a key requirement for GPSNR membership. 

“By having robust reporting requirements and a system to transparently report on progress, GPSNR member companies will be able to demonstrate leadership, monitor and further the effective implementation of their sustainability commitments, and ultimately drive positive impacts in the natural rubber value chain,” explained Amy Smith, Policy Toolbox Working Group Co-Chair.

The Working Group proposed pilot testing the Baseline Reporting Requirements with a group of volunteer member companies to better understand any constraints companies may have in obtaining and sharing certain information. The goal of the pilot was to refine and finalize the Baseline Reporting Requirements based on company feedback.

“In addition to pilot testing with member volunteers, we will also be assessing and evaluating the potential of existing certification schemes and reporting systems to adopt as part of GPSNR reporting requirements,” added Policy Toolbox Working Group Co-Chair, Pierre Bois d’Enghien. “This evaluation, together with the feedback we received from the pilot, will help us build a reporting system that is credible and useful for all stakeholders.” 

We are pleased to announce that a total of 11 GPSNR members volunteered for the pilot test. These members, who include Continental AG, Ford Motor Company, Halcyon Agri Corporation Limited, Hevea-Tec Indústria e Comércio LTDA, Industrias de Exportacion Universal, S.A., ITOCHU Corporation, Michelin, SIPH, Socfin SA, Sumitomo Rubber Industries Ltd, and The Yokohama Rubber Co., Ltd., represent all the membership categories to which the Baseline Reporting Requirements would apply. 

In mid-July, the reporting platform was opened to the pilot participants, who were given three weeks to submit the required data. Concurrently, the Secretariat conducted one-on-one interviews with the participants to gather feedback about their experience using the baseline reporting platform as well as their suggestions on ways to improve the process. 

“Our volunteer member companies were instrumental in helping to refine the Baseline Reporting Requirements and ensuring that the platform’s reporting mechanisms are relevant and meaningful for all our members,” said GPSNR Director Stefano Savi. “This improvement will help us achieve our shared objectives of ensuring a sustainable and equitable natural rubber supply chain.”

Following the approval of the policy requirements at the General Assembly in September, the Policy Toolbox Working Group will review the compiled company feedback from the pilot and the member consultation process conducted earlier this year, and will refine and finalize the Baseline Reporting Requirements for Executive Committee approval by the end of 2020. Once the Executive Committee has approved these requirements, ordinary company members will submit their baseline reporting data for 2020 to GPSNR in Q1 of 2021.

The Baseline Reporting Requirements will enable GPSNR to understand what its member companies currently know about their natural rubber supply chains, and what they are doing to move towards sustainable practices. Having a rigorous and transparent reporting process in place will strengthen the credibility of GPSNR and contribute to the development of a robust Assurance system for the platform.

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