GPSNR Working Groups Update: September 2022

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.

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.

Singapore, 24 September 2021: Apollo Tyres, Bridgestone, Continental Tires, Goodyear Tire and Rubber Company, Hankook Tire & Technology, Kumho Tires, Michelin, Nokian Tyres, Pirelli, Sumitomo Rubber Industries, the Toyo Tire Group and the Yokohama Rubber Co. Ltd. are the first companies to have adopted natural rubber policies that are fully aligned with the policy framework of the Global Platform for Sustainable Natural Rubber (GPSNR). 

As members of GPSNR, their policies include eight major components: commitment to legal compliance, healthy functioning ecosystems, respecting human rights, community livelihoods, increased production efficiency, supply chain assessment and traceability, monitoring & reporting and driving effective implementation of all these components. According to Sooil Lee, President and CEO of Hankook Tire & Technology, ‘’Together with our supply chain partners, these commitments will help improve the quality of life of the natural rubber cultivators, upgrade quality of natural rubber and minimize environmental impact.’’ 

For Michelin’s Natural Rubber Sustainability Manager Edouard De-Rostolan, ‘’the alignment of commitments among GPSNR members, particularly with regard to the risk-based approach and the continuous improvement model, is a key driver for the platform to fulfill its primary mission, which is to create impacts on the ground in order to enhance the sustainability of the industry as a whole.’’ Pirelli’s Natural Rubber Procurement and Sustainability Manager Ulrich Antoni shared the sentiment, ‘’It’s great to see that more and more GPSNR members have aligned their policies to the GPSNR Policy framework. With the coordinated and concerted effort of GPSNR and all members, the natural rubber industry is directing individual and joint actions towards our shared goals for a sustainable natural rubber future. Pirelli will continue to take a proactive role in the platform and cascade good practices throughout the supply chain, with the ultimate goal of having an impact at the farming level too.’’

The commitment from these tire makers and their active participation within GPSNR reflects on their intent towards implementation.  ‘’In cooperation with the GPSNR Secretariat and stakeholders, we will sincerely implement these policies through our business activities,’’ says Toyo Tires’ Mitch Tamaki. 

To make sure that companies have adequate support to implement these commitments, GPSNR is working on an implementation guidance document and baseline reporting requirements. These will help translate this commitment into implementation. 

‘’All GPSNR members are required to align with the policy framework, and it is heartening to see companies follow through with the process. We are expecting many others to follow suit in the next few weeks.’’ says GPSNR Platform Director Stefano Savi. ‘’The policies serve as a foundation for a structural transformation not just for one company or rubber plantation, but the industry as a whole.’’

The GPSNR policy framework and published policies of  Continental Tires, Hankook Tire & Technology, Michelin, Nokian Tyres, Pirelli, Sumitomo Rubber Industries, the Toyo Tire Group and Yokohama Rubber can be found here. The rest of the policies will be published shortly. 

-Ends-

About GPSNR:  

GPSNR is an international membership driven platform set up to define sustainability for the natural rubber value chain. It brings together various stakeholders to a common ground based on fairness, equity and environmental sustainability. GPSNR member companies account for almost 50 per cent of the global natural rubber volume.  

More on sustainablenaturalrubber.org 

For more information, please contact: 

Bani Bains 

Communications Manager 

Email: bani.bains@gpsnr.org 

Ph: +65 97268165