Empowering Smallholder Farmers: The Path to Deforestation-Free Rubber Supply Chains to Meet the EUDR

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On Wednesday, 19 April 2023, the European Union approved the upcoming Deforestation-Free Regulation (EUDR) to prevent companies from placing products linked to deforestation onto the EU market. As part of the wider vision of the EU Green Deal, it will demand companies who import rubber or rubber-based products (e.g., tires) to verify that their supply chain is deforestation-free. It’s a push towards an era of environmental accountability, yet it also sparks debates about the path forward for the rubber industry.

The EUDR requires companies to have traceability to the farm level, including geo-location data and proof of land legality. According to the regulation, every plot below 4 hectares requires at least a GPS point coordinate, while plots above 4 hectares must have a polygon.

Fulfilling these traceability requirements is no small feat. There is concern from the industry that smallholder farmers may be unintentionally excluded from global sustainable supply chains. Ensuring smallholder farmer inclusion requires a holistic sustainability approach.  There is no doubt that the rubber industry has begun moving towards sustainable rubber sourcing through combined industry efforts like the Global Platform for Sustainable Natural Rubber (GPSNR). However, the reality is that most imported rubber to the EU currently does not meet the regulatory requirements as the industry lacks traceability to the farm level. As 85% of the global natural rubber supply is supplied by approximately 6 million smallholder farmers, the implications of this regulation could be far-reaching and severe, particularly for these smallholder farmers.

However, there is a lot of hope.

Firstly, even though it might seem challenging, traceability to the farm level is doable – even for the rubber industry. This has been demonstrated in a GPSNR-funded farmer training and coaching project primarily focused on supporting smallholders to apply Good Agriculture Practices (GAP). Koltiva, the company I am working for and who was selected to be the implementing partner for this project, has mapped more than 4,000 farmers and their farms to help them to prepare for the EUDR in less than a year.

Secondly, we believe that traceability to the farm is scalable. In our work with clients in 51 countries, we were able to map almost 1 million smallholder farmers through our KoltiTrace platform. Platforms such as KoltiTrace allow companies to map and verify their supply chain, including transaction traceability from Seed to Tire and deforestation-free analysis.

Finally, EUDR could have a long-term positive impact on smallholder farmers. Currently, many rubber farmers do not have proper land titles. Due to the EUDR geolocation requirements, many smallholders will, for the first time, have access to a map of their own plantation, allowing them to legalize their land.

And it doesn’t stop there. Smallholders have largely been invisible in global supply chains. Traditional development programs have tried to engage them, but they have not reached the expected results. Many smallholders still have no access to knowledge, no access to capital,  and soon will also be excluded from the carbon economy.

I believe that it’s possible to bridge these gaps. Traceability to farm level and digitalizing the first mile of agricultural value chains can lay the foundation for holistic sustainability interventions. Enabled by technology and data, the sector can equip farmers with critical knowledge, improve their access to finance, actively support farmers to apply low-carbon practices and enable them to reap the benefits of the growing carbon economy.

While traceability cannot be achieved overnight, the rubber industry is in a unique position. At GPSNR, the major industry players are sitting at one table. Through combined efforts and data-sharing agreements of shared supplier data, the rubber industry can become a leading example of how to meet the EUDR.


About the Author:
Luca Fischer is Koltiva’s Program Manager, leading Koltiva’s boots-on-the-ground implementation projects in the rubber sector globally. He bridges the gap between the client, product, and field teams.

Luca has over five years of work experience in sustainable sourcing, smallholder livelihood, and climate-smart agriculture development. He graduated with an M.Sc. in Sustainable Resource Management from the Technical University of Munich, Germany.

About Koltiva (click here for more information)
Established in 2013, Koltiva is a leading agritech company for enterprises to make their global supply chains traceable, inclusive, and climate-smart. Backed by Koltiva’s human-centered technology with boots-on-the-ground professional service, Koltiva supports some of the largest multinational companies by digitizing and verifying global supply chains, focusing on enhancing traceability, inclusiveness, and sustainability. Koltiva combines triple-tech (AgriTech, FinTech, and ClimaTech) to improve producers’ outcomes and profitability while building more sustainable supply chains.

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GPSNR unveils first ever collective grievance mechanism in the natural rubber industry

Singapore, 15 June 2021: The Global Platform for Sustainable Natural Rubber (GPSNR) has unveiled the natural rubber industry’s first ever grievance mechanism. The process provides a platform to address complaints against its members. It also creates a space for collaboration, improved relations and amicable and meaningful solutions amongst stakeholders in the natural rubber value chain. In situations where this is not possible, the Grievance Mechanism offers recourse and seeks to ensure remedy is provided to impacted parties.  

Members and non-members can now use this process to address existing concerns regarding a member’s violation of membership requirements or other guiding principles of the Platform. The mechanism seeks to provide transparency and predictability in the process and requires resolutions to be reached in a timely manner. It asserts particular emphasis on finding expedient and impartial resolution for high risk cases involving impact on communities or the environment, through the creation of a Complaints Panel. This panel will be made up of volunteer members, an external expert, and will judge whether and what kind of corrective actions need to be taken. 

The process is comprehensive and risk-based, and is designed with the aim  to bring parties to viable solutions and concrete remedy through a transparent process. ‘’The mechanism makes it possible for third parties to address issues with GPSNR members through an unbiased yet amicable process. The focus of the process will always be on finding solutions that work for everyone and provide both Complainants and Respondents with a transparent platform for resolution and accountability’’ said GPSNR Platform Director Stefano Savi.  

In slightly over two years, GPSNR has established itself as a platform working towards systemic change in the natural rubber supply chain. The existence of a strong redressal process like this grievance mechanism showcases its commitment to a culture of fairness and transparency.  

-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% 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 

News

GPSNR Working Groups Update: December 2022

Strategy and Objectives Working Group

The risk subgroup, which sits under the umbrella of this working group, is working on a series of Traceability tools webinars for GPSNR members to present on some tools available that would help members map their supply chain. The subgroup is also working on a pilot traceability study to investigate what it takes (costs, time, labour) for a company to map its supply shed. The subgroup is also working with a consortium to develop a risk assessment matrix.

The assurance model subgroup continues to work on the KPIs set during the last in-person meeting as they are to be finalised at the end of the year and presented during the next in-person and hybrid meetings in January 2023.

Smallholder Representation Working Group

After completing two rounds of pilot agroforestry workshops for smallholder members in Indonesia, and Cambodia, the working group is working on concluding how GPSNR should approach agroforestry capacity building in the long term through an agroforestry strategy. This work stream aims to integrate priorities of smallholders with developing long-term income diversification strategies through the Capacity Building Working Group.

They are also busy holding focus group discussions towards the smallholder policy equivalent, kickstarting HCSA-HCVN programme field trials for natural rubber smallholders, and on enhancing integration with the capacity building working group.

Policy Toolbox Working Group

The group is working on finalizing the TORs for the Year 1 Reporting Review to be conducted in the first quarter of next year. They are also assessing if any changes to the reporting framework and its details (i.e. process, extensions, questions) are needed based on the Year 1 Reporting Review results. They have already kicked off the crosswalk of the reporting requirements against other reporting frameworks to better improve the questions. The group would also be sending out a survey for members to provide feedback on their reporting (reporting process, reporting requirements questions, guidances, etc.). They would also be working on the Transparency Reporting Roadmap for years 2 and 3 of reporting that would be voted at the GA 2023.

Shared Responsibility Working Group

The group is currently evaluating proposals to appoint a software developer for the second phase of the GPSNR Knowledge Sharing Platform based on a reworked tender. In 2022, they have also kicked off the Disease Fighting Project with SNV-IRRI in Indonesia, after having recently completed the first milestones of the Koltiva and SNV-Proforest GAP coaching projects in the country. They continue to seek members’ funding for capacity building projects in Indonesia (second stream of disease fighting) and Cote d’Ivoire (training centres). To know more, you can find the project details here

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