GPSNR Working Groups Update: October 2022

Desired state V1-0 and Theory of Change documents were circulated among Strategy & Objectives Working Group in November. Comments from the members were consolidated and will be responded to in the next version.  Theory of Change will be finalized and submitted to the Executive Committee in order to be approved at the General Assembly in March 2020.

Strategy 1 ‘Policy Toolbox’ Working Group primarily agreed on the scope of work. The desired state V1-0 serves as a baseline document which will be cross referenced with Accountability Framework initiative in order to come up with policy framework that will be applicable to GPSNR members.  The drafters volunteers will present the first draft of a policy framework to the working group members in December 2019.

Strategy 2 ‘Capacity Building’ Working Group members worked on defining priority geographical areas based on current production volume and emerging trend of natural rubber production.  The existing stakeholders and capacity building activities in those countries are being identified in order to design the plan for GPSNR on capacity building.

Strategy 3 ‘Traceability and Transparency’ Working Group members were requested to list down traceability tools that are currently in use and/or traceability tools that could be potentially used for natural rubber supply chain.  In December they will analyze the attributes of each tool to see the compatibility and applicability for transparency and risk assessment.

All the 3 working groups including Strategy & Objectives and Smallholders Representation Working Group members are given access to GPSNR discussion forum which aims to increase transparency and synergy among the working groups. You will be able to see the discussions and the documents of all the working groups but will be able to contribute only to the groups you signed up for.  Please contact nigel@gpsnr.org for your log-in credentials.

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.