Natural rubber stakeholders align on GPSNR governance

Natural rubber stakeholders have aligned on a governance structure and priority actions for the Global Platform for Sustainable Natural Rubber (GPSNR), an independent platform to lead improvements in the socio-economic and environmental performance of the natural rubber value chain.

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A 22-23 January stakeholder workshop in Singapore saw Founding Members of the GPSNR and other stakeholders, align on a multi-stakeholder governance structure that includes a greater share of voting weight for civil society members. “This is a significant development,” said Stefano Savi, GPSNR Director “the model aligned on last week in Singapore comes out of a November 2018 workshop in Geneva – it’s a product of the dedication of all stakeholders to the shared goal of sustainable natural rubber – we’ve seen compromise from all parties, there’s a spirit of cooperation and inclusivity that shows there’s real commitment to make this work.”

The proposed governance structure will be put forward for adoption at the platform’s inaugural General Assembly (GA) planned for 21 March 2019, Singapore, scheduled in conjunction with the World Rubber Summit. Whilst multiple stakeholders have provided valuable input to the development of the platform thus far, governance roles and rights-to-vote are reserved for platform members only.

The platform includes the enrollment of smallholder members amongst its priorities. Despite the challenges associated with recruiting smallholder representatives, the more than 50 GPSNR stakeholders present at the workshop agreed that this critically important stakeholder group should be part of the GPSNR decision making structure. A dedicated working group will be established to coordinate actions to identify and secure adequate smallholder representation.

The workshop also confirmed the need for targeted member-recruitment to bolster the inclusion of rubber processors, NGOs specialized in social aspects relevant to rubber production, as well as non-tire manufacturing rubber makers.

“Agreement on platform governance is excellent progress and means the platform can better focus on the work ahead. We’re all aware of the critical challenges that remain, but there’s a feeling that, together, we can meet those challenges” said Savi, speaking at the close of the two-day workshop.

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Continuing the Conversation with GPSNR Topic Talks – The Sumatran Rubber Pilot

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.

The recording and slide deck from the webinar can be accessed with the links below:

  1. Link to Recording
  2. Link to Slide Deck

News

GPSNR’s new Policy Framework drives members commitment to sustainable rubber production and sourcing

Singapore, 23 September 2020: On Wednesday, members of the Global Platform for Sustainable Natural Rubber (GPSNR) convened the annual General Assembly, which saw the approval of a members’ sustainability policy framework and the creation of a new membership category for smallholder producers of natural rubber.

The newly approved policy framework will help GPSNR member companies, who account for almost 50% of global natural rubber volume, to establish or update strong supply chain sustainability commitments through their natural rubber purchasing policies, on all aspects of sustainability: economic, environmental, and social. Modeled around the Platform’s 12 Principles of Sustainable Natural Rubber, the new policy framework sets out eight overarching themes that include commitments to legal compliance, community livelihoods, healthy, functioning ecosystems (including no deforestation), and respecting all human rights.

“This is a tremendous milestone for the Platform and for the natural rubber industry. In just under two years, GPSNR members developed and approved concrete policy commitments for companies to integrate into their sustainable natural rubber policies. Today, and despite the challenges we all faced during this global pandemic, GPSNR members send a signal to the world about their commitment to achieving a fair, equitable and environmentally sound future” said GPSNR Director Stefano Savi.

Around 85% of the world’s natural rubber is produced by smallholders. In order to transform a sector that is primarily reliant on smallholder producers, GPSNR is embracing smallholder inclusivity and a concept of shared responsibility through the establishment of a Shared Responsibility Working Group, which will identify how the responsibilities and costs of implementation can be equitably distributed across all stakeholder categories, with the understanding that smallholders should not carry the burden of a higher cost to implement sustainability activities in complying with the policy or implementation guidance to be developed.

“Smallholders are a crucial link in the natural rubber value chain, and they have a key role to play in driving awareness on-the-ground and setting the global agenda for sustainable natural rubber” remarked Director Savi.

This year, GPSNR welcomed 28 smallholder members from seven rubber-producing countries. These smallholders now constitute a newly approved standalone category and play an equal role in decision-making within GPSNR alongside the other four categories: producers, processors, and traders; tire manufacturers and other natural rubber makers/buyers; car manufacturers, other downstream users and financial institutions; and civil society.

GPSNR’s virtual General Assembly drew more than 120 attendees, including members of the Platform, partners and invited guests. In addition to voting on resolutions, GPSNR members also elected representatives to the 2020-2021 Executive Committee, which comprises representatives from each of the membership categories. And for the first time, three newly elected smallholder producers with diverse geographical backgrounds will participate in Executive Committee discussions and decision-making.

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