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Natural rubber faces a similar set of environmental, social and economic issues as other agricultural commodities such as palm oil, but the spotlight on sustainability has only been recently turned towards this key raw material, 70% of which goes into tire production. The launch of GPSNR marked a significant step towards developing sustainable standards for natural rubber, with member organizations making a commitment to 12 Sustainable Natural Rubber Principles.
The Policy Toolbox Working Group was established to develop a guiding framework for GPSNR members to implement policies and practices that align with the 12 Principles. Two key documents, the Policy Components and Baseline Reporting Requirements, have emerged after a year of discussion and drafting.
The Policy Components outline specific commitments that GPSNR company members should include in their sustainable natural rubber policies, while the Baseline Reporting Requirements indicate qualitative and quantitative sustainability data to be reported to the Secretariat for the first year of reporting.
A members webinar was held on 16 June, where the Co-Chairs of the Policy Toolbox Working Group explained the purpose, process and next steps surrounding the two documents.
Several members have volunteered to participate in an ongoing pilot testing of the Baseline Reporting Requirements. The goal of the pilot is to refine and finalize the Baseline Reporting Requirements based on company feedback.
The proposed Policy Components and Baseline Reporting Requirements are now open for member consultation until 3 July 2020.
We can draw parallels to the coffee industry, which similarly comprises small plantation owners and more profitable downstream actors. In his recent sustainability report on the coffee industry, economist Jeffrey Sachs’ proposal for a global fund to fill the financial gaps for sustainability investments in coffee producing regions garnered vivid discussion.
Currently, low and unpredictable rubber prices are a constraint to smallholders who produce the bulk of global rubber output. Transparency is critical in the purchasing process, and this kind of disruption typically comes hand in hand with embracing new strategies.
Under the purview of the Strategy & Objectives Working Group, capacity building and extension services have been identified as potential measures to mitigate the root causes of the social and environmental impact from the natural rubber supply market. Implementing these at scale for the whole industry will require considerable financial investment.
With the above considerations in mind, GPSNR is exploring new approaches to funding that would not be borne by a single segment of the industry, but in a manner incorporating the spirit of our shared responsibility.
Enterprise Singapore organized an industry meeting on 14 January 2020, and invited GPSNR and Singapore Exchange to better understand the available options of an e-trading platform that could contribute to our funds. The meeting also discussed what could be the options, through GPSNR, to increase the uptake of the e-trading platform.
Tapping the vast potential of digitalization could present an exciting avenue of possibilities for GPSNR to better advance our vision of a fair, equitable and environmentally sound rubber value chain.
The meeting was initiated by representatives from Enterprise Singapore, and panel speakers comprised representatives from GPSNR, Singapore Exchange and HeveaConnect. Participants included GPSNR members as well as other Natural Rubber buyers, producers, processors and traders .
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Global Platform for Sustainable Natural Rubber
Members commit to this policy framework and report on these questions
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