GPSNR Working Groups Update: May 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.

In the August newsletter we have informed you that we will organize smallholders workshop in 5 different countries with the primary objectives of:

1. Understanding the local needs and motivations of the smallholder farmers;
2. Understanding and recommending solutions to the barriers for smallholders and their representative organizations to join and actively participate in the GPSNR;
3. Observing and explaining the interaction and chemistry between farmers and representative organizations.

Now we are proud to tell you that we are ready to launch the first smallholders workshop in Jambi, Indonesia on October 7th – 9th. 20 smallholders and smallholder representative organizations that have been nominated by several local partners on the ground such as SNV, WWF Indonesia, Kirana Megatara, etc. will meet up in Jambi with various categories of GPSNR working group members to further explore the future of sustainable natural rubber production.  The participants from GPSNR side is limited to 6 persons to ensure the discussions are organically contributed by smallholders.

The 3 days workshop will start with self introduction, understanding each other, understanding the current and future trends of rubber market.  It will spread out to what the platform is and how the platform can work for and with smallholders to create a win-win solution.

Four more workshops to be organized this year after Indonesia will be held in Thailand, Vietnam, Cote d’Ivoire and Brazil.  After the 5 workshops are finished, we will recommend the smallholder representations to the Executive Committee during the General Assembly in March 2020.

Stay tuned for the dates and venues of the upcoming workshops. For more information please contact kobrat@gpsnr.org.