GPSNR Working Groups Update: September 2021

The first draft of the “desired state” document has been shared with the Executive Committee in their monthly meeting in June for further consultation. To avoid overlooking any important steps and details necessary for the development of strategies and objectives, a terms of reference was also created by the Working Group and approved by the Executive Committee, defining the scope, objectives, and outcomes which will be enabled by the process. 

The completion of the “Theory of Change Workshop” in March, where the group met in Singapore to collaborate on building out “What Good Looks Like” when it comes to sustainable natural rubber, contributed to the start of the work on the “Theory of Change” for natural rubber, a process aimed at identifying the root causes for the current state of the natural rubber industry as well as identify the Key Strategies that the Working Group believes the platform should start working on. 

Currently, the Working Group is in the process of finalizing the recommendations for launching these strategies, including  timelines for implementation in 2019/2020. The focus for the next 6 months will be on launching and pursuing three main strategies: 1) Sustainability Policy Tool Box and Best Practices; 2) Capacity Building for Smallholders and Rubber Plantations to support the incorporation of more sustainable practices; 3) Improving Transparency and Traceability within the Natural Rubber Supply Chain. 

We would like to thank the members who participated and encourage all others to actively  participate in the Working Group’s undertakings. In order to meet the high expectations set for GPSNR, we need members to attend the meetings frequently, participate consistently, and contribute in a timely manner.

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.