Natural Rubber and the European Union Deforestation Regulation: Perspectives from a young sustainability advocate working on natural rubber

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Earlier this year, I joined the Global Platform for Sustainable Natural Rubber (GPSNR) to work with smallholder farmers, civil societies, manufacturers, processors and end users on capacity building for those at the bottom of the natural rubber (NR) supply chain. The primary goal was to equip them with the necessary skills for sustainability reform, with the ultimate goal of cultivating better quality raw materials and fostering greater economic mobility. This journey provided me with valuable insights, enabling me to learn from industry professionals and gain an understanding of sustainability issues from diverse perspectives. In this short article, I would like to share some of my key takeaways from being exposed to GPSNR’s initiatives for a sustainable NR industry and interacting with those from other commodities on similar journeys.

To begin, the adoption of the European Union Deforestation Regulation (EUDR) is widely celebrated as a significant step in combating climate change and demonstrates the EU’s commitment to ensuring a sustainable supply chain. However, my interactions with smallholder members of GPSNR shed light on the concerns raised about the shifting of compliance costs to producers. One smallholder member I work with has often highlighted the challenge of balancing the cost of implementing sustainable practices against revenues. They expressed their desire for tangible benefits, such as receiving premium prices for their products, if they were expected to adopt sustainable farming methods. To truly ensure a sustainable supply chain, it is important for governments and industry players to support and assist the vulnerable groups along the supply chain in overcoming the financial barriers they face. This will help ensure that the burden of compliance costs is not disproportionately placed on their shoulders.


Attending the Partnerships for Forests (P4F) Forum 2023 in London. P4F’s invaluable support has played a pivotal role in empowering GPSNR’s smallholders and fostering sustainable engagement.

Additionally, while initiatives to combat deforestation remain crucial, we must not overlook the importance of addressing social issues and the potential economic consequences of such regulations. At the Amsterdam Declaration Partnerships in May 2023, I had the opportunity to hear a minister from a producing country emphasize the importance of consuming nations recognizing the economic and social consequences. Failing to consider economic and social consequences can have far-reaching effects such as increased poverty levels and inequality. Therefore, a holistic approach that balances all three pillars of sustainability is necessary to safeguard the well-being and livelihoods of those affected while protecting the environment.

Lastly, drawing from my experience during the National Initiatives Strategy meeting, an initiative to enhance social, environmental, and economic welfare on a global scale, it became clear that national initiatives have certain limitations when it comes to supporting multiple commodities simultaneously. Therefore, these initiatives need to prioritize specific commodities in order to ensure practicality and effectiveness. During the meeting, it was collectively acknowledged that national initiatives do not need to take the lead in every solution, but rather offer support to industry and government-led initiatives while fostering effective collaboration to avoid duplication in allocation of resources. This also highlights the significance of industry-led solutions, which can complement the work of national initiatives. Industry players’ proactive measures can help anticipate and mitigate potential risks in the supply chain more effectively, promote sustainable practices, and contribute to the overall goal of combating climate change and complying with EUDR.

As I reflect on my experience with GPSNR, it is evident that sustainability in the NR supply chain has been a longstanding commitment even prior to the introduction of the EUDR. Various initiatives have been taken to promote sustainable practices within the NR industry, including the approval of reporting requirements and the adoption of the GPSNR policy framework. These initiatives aim to encourage GPSNR members to align their practices with GPSNR Policy Framework and thus, establish strong sustainability commitments across the NR supply chain.

This year marks a significant transition for GPSNR as we move from commitment to implementation, focusing on four key fronts. Firstly, our efforts are dedicated to finalizing the GPSNR assurance model, an encompassing framework that establishes sustainability guidelines and standards for the entire supply chain. Additionally, GPSNR is also actively working on implementing the shared responsibility mechanism, wherein the manufacturers collaborate to share the costs of capacity building, fostering an equitable and sustainable NR industry.

Furthermore, GPSNR is expanding its capacity building initiatives in essential areas such as Good Agricultural Practices (GAP), agroforestry, and disease management. These efforts aim to empower local communities in key NR producing regions, particularly in Thailand and Indonesia. GPSNR also implemented a smallholders-inclusive strategy, whereby smallholders members can participate in the decision-making processes, become part of the Executive Committee of GPSNR, and have the voting rights at the General Assembly. This ensures that the voices and perspectives of smallholders are taken into account in the development and execution of sustainable natural rubber initiatives.

Lastly, GPSNR is actively striving to fine-tune decisions that support a smoother implementation of the EUDR, which include shared due diligence systems, joint deforestation analysis tools, and common traceability tools, all funded by manufacturers. These measures will enhance transparency and accountability within the NR supply chain.

Members of the Smallholder Representations and Capacity Building Working Group, which include smallholder members from Thailand and Indonesia,  come together in Singapore, bringing their invaluable perspectives to GPSNR workshops in June 2023.

In conclusion, my journey with GPSNR as a passionate sustainability advocate has underscored the significance of collaboration in forging a sustainable NR industry. As we navigate the path forward, it is crucial to address the challenges ahead while maintaining a delicate equilibrium between environmental, social, and economic considerations. The initiatives undertaken by GPSNR, including capacity building, smallholder inclusion, and strategic decisions to support EUDR implementation, reflect a steadfast commitment to sustainability. Together, we can make a positive impact on the global NR supply chain and create a sustainable future.

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Members

Call for Volunteers: Implementation Guidance/Reporting Requirements Stakeholder Category Focus Groups (Members Version)

Through a process led by the Policy Toolbox and Implementation Guidance Working Group (WG1), the General Assembly approved a Policy Framework in September 2020. The Framework outlines specific commitments to sustainable natural rubber that GPSNR company members must include in their public policies or other relevant documents.

The next step is for GPSNR to develop the Implementation Guidance and Reporting Requirements as they pertain to the specific commitments laid out in the GPSNR Policy Framework.  WG1 is engaging consultant(s) to develop the Implementation Guidance and Reporting Requirements. As the Implementation Guidance and Reporting Requirements will vary depending on where a member company sits within the natural rubber supply chain, input will be needed to develop these documents for the following stakeholder categories:  natural rubber producers/processors and traders, tire makers and other natural rubber product manufacturers, and auto makers and other end users.

GPSNR is creating focus groups for each of the three stakeholder categories to enable broader participation of members from each stakeholder group.  Members from other stakeholder groups are also encouraged to join the focus groups to help ensure a balanced dialogue.

Focus groups will work closely with the consultant(s) to ensure that the Implementation Guidance and Reporting Requirements are relevant to the respective stakeholder categories. Once these documents are finalized, they will be voted on at the next General Assembly.

GPSNR is now looking for volunteers to join the stakeholder category focus groups that will be consulted during the development of GPSNR’s Implementation Guidance. There are no limits to how many category members can join the focus groups. Members are encouraged to join at least one focus group.

Focus groups members are expected to take part in two calls with the consultant between March – June 2021. Members are also expected to review the proposed documents before and after the call (this should not take more than a few hours of time).

The entire process is expected to conclude by June 2021.

If your organization is interested in joining a focus group, please sign up at the following link:

News

GPSNR Working Groups Update: April 2023

Strategy and Objectives Working Group

The working group includes both the Risk subgroup and the Assurance Model task force and is currently working on some exciting stuff!

The Risk subgroup has been busy, with consortiums Agridence and Koltiva having kick started their pilot field trials on the traceability tools. They are actively pursuing the next steps for the deliverable from ASI on the Risk Assessment Framework. This includes conducting internal piloting and cross-walking the tool with GPSNR commissioned studies to identify gaps. Lastly, second in an ongoing series, the Traceability Tools Webinar will be occurring on 26th April and you may register for it here

The Assurance Model taskforce will be meeting to discuss updates on KPI alignments, due diligence system and the members progress model. 

Smallholders Representation and Capacity Building (SCB) Working Group

The SCB Working Group has proposed a new structure with three co-chairs and this has been officially endorsed. The next Working Group meeting will take place on 27th April, where they plan to formally endorse the Terms of Reference. 

Updates on the Income Diversification and Rubber Agroforestry taskforce, the strategy for 2023-2024 has been endorsed, and the taskforce will continue their work on planning the schedule and sequence of workshops and finalising the contractual plan. 

On the Digital Knowledge Sharing Platform front, Koltiva will work together with the taskforce to start developing the app and its features. In upcoming news, the Thailand Good Agricultural Practices (GAP) subgroup will publish the tender soon. 

 Policy Toolbox Working Group

Input has been collected on the reporting process from members through the Year 1 Reporting Review Survey. As part of this review, stakeholder- specific meetings will be conducted to collect more feedback on the reporting process. Based on the Year 1 Reporting Review results, any changes will be assessed to the reporting framework and its details (i.e., Process, Extensions, Questions), and disclosure requirements will need to be agreed on for reporting Years 2 and 3 (Transporting Reporting Roadmap- TRR). Future actions will require the reporting guidance for Year 2 to be improved according to changes proposed to the reporting matrix.

An RFP for consultants has recently been published to look into proposing a quantitative orientation for the reporting matrix and do a crosswalk with other reporting frameworks (CDP Forest, GRI and ZSL-SPOTT). On news of the Assurance Model front, what follows would be to finalise Compliance Panel Terms of Reference and operational guidance based on the Assurance Model.  

Shared Responsibility Working Group

During the physical meeting in January- February, the Governance and Guiding Principles were presented, Manufacturers will provide a revised document of said principles by April. 

Next phases for the Working Group are pending the outcomes of discussions on shared investment principles, which are currently happening on the Manufacturers category level. The Working Group will revamp data sharing and value transfer discussions once the proposal from the Manufacturers is available.

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