Rubber, representation and reform – What smallholders bring to the sustainability conversation

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By Febrius Wibisana, GPSNR Executive Committee Member & Co-Chair, GPSNR Smallholder Inclusion Working Group

For those who do not know me yet, my name is Febrius Wibisana and I have been a rubber smallholder in Indonesia for over 25 years. At GPSNR, I represent the smallholder category at the Executive Committee level. I am also the co-chair of the Smallholders Representation working group.

In June 2022, I was invited by the Partnership for Forests or P4F to the P4F Forum with their partners and projects from across the world. They wanted me to speak about my experience at GPSNR on smallholder inclusion in the sustainability conversation in natural rubber. The experience gave me the opportunity to put some thought into our work over the last three years – the challenges, the successes and carving the path forward.

I am writing this to share some of those reflections with my fellow GPSNR members.

Reflection 1: It is impossible to have holistic sustainability solutions in natural rubber without smallholder participation

GPSNR Impacts & Assurance Associate Si Yuan and myself at the P4F Forum in London

We live in a world where 6 million smallholder farmers produce almost 90% of the world’s natural rubber. In such a world, any conversation on change in this supply chain has to include smallholders. 

In its second General Assembly in 2020, GPSNR members passed a resolution to include smallholders as a category within the membership. We started with 28 odd smallholders, including myself, engaging in conversations on sustainability, capacity building and the meaning of true inclusion and having the smallholder voice heard at various decision making levels. Today, I represent over 130 smallholders across 10 countries in the GPSNR Executive Committee. 

To bring smallholders into each conversation, we work closely with country level champions and local government entities for outreach and engagement. Interpretation facilities and key documents being translated to smallholder languages are some small but significant steps we take at GPSNR to further facilitate smallholder participation.

Reflection 2: Membership does not guarantee active participation

While many of our smallholder members are actively engaged in core decision making and at the working group level, many find it difficult to do so. The digital divide, language barriers and a skewed equation of structural power could be some key reasons for this. Some smallholders simply may not have the time for it. 

Yet, as we embark on transforming the entire supply chain, we need active smallholder voices to join and remain in the GPSNR fold. To this end, the smallholder representation working group has put forward a resolution with proposed changes in smallholder membership structure, where smallholders will have to participate in the General Assembly to take up ordinary membership. All others will be classified as affiliate members by default. You can take a look at the resolution here

Reflection 3: Making a supply chain sustainable requires thorough capacity building at all levels

There are more than 2 million smallholders in Indonesia. Yet, despite being the largest producer, it has the lowest productivity in the world. This is because of diseases and poor planting materials. Many other rubber producing nations face similar problems. 

If we are to make this supply chain sustainable, equitable and fair, and achieve the desired state that the GPSNR Theory of Change spells out, smallholders have to be equipped with the skills and resources. The capacity building working group has already kicked-off the first such projects in Indonesia with SNV-Proforest and Koltiva. GPSNR has also received funding pledges from Renault, Goodyear, Michelin and Pirelli for other projects, but scaling them requires more. Funding information is available here for any one in the natural rubber industry. 

Capacity building will also equip smallholders to participate further in GPSNR decision making and other processes. 

As we move forward, I am energised by the progress GPSNR has made so far on smallholder participation. In our attempt to move towards more active engagement, we need the support of all our members. Our ability to meet in person will further strengthen this support, and I look forward to working with all of you to transform the supply chain. 

More To Explore

Members

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

PRESS RELEASE: Natural Rubber players adopt policies committed to healthy ecosystems and human rights

Singapore, 24 September 2021: Apollo Tyres, Bridgestone, Continental Tires, Goodyear Tire and Rubber Company, Hankook Tire & Technology, Kumho Tires, Michelin, Nokian Tyres, Pirelli, Sumitomo Rubber Industries, the Toyo Tire Group and the Yokohama Rubber Co. Ltd. are the first companies to have adopted natural rubber policies that are fully aligned with the policy framework of the Global Platform for Sustainable Natural Rubber (GPSNR). 

As members of GPSNR, their policies include eight major components: commitment to legal compliance, healthy functioning ecosystems, respecting human rights, community livelihoods, increased production efficiency, supply chain assessment and traceability, monitoring & reporting and driving effective implementation of all these components. According to Sooil Lee, President and CEO of Hankook Tire & Technology, ‘’Together with our supply chain partners, these commitments will help improve the quality of life of the natural rubber cultivators, upgrade quality of natural rubber and minimize environmental impact.’’ 

For Michelin’s Natural Rubber Sustainability Manager Edouard De-Rostolan, ‘’the alignment of commitments among GPSNR members, particularly with regard to the risk-based approach and the continuous improvement model, is a key driver for the platform to fulfill its primary mission, which is to create impacts on the ground in order to enhance the sustainability of the industry as a whole.’’ Pirelli’s Natural Rubber Procurement and Sustainability Manager Ulrich Antoni shared the sentiment, ‘’It’s great to see that more and more GPSNR members have aligned their policies to the GPSNR Policy framework. With the coordinated and concerted effort of GPSNR and all members, the natural rubber industry is directing individual and joint actions towards our shared goals for a sustainable natural rubber future. Pirelli will continue to take a proactive role in the platform and cascade good practices throughout the supply chain, with the ultimate goal of having an impact at the farming level too.’’

The commitment from these tire makers and their active participation within GPSNR reflects on their intent towards implementation.  ‘’In cooperation with the GPSNR Secretariat and stakeholders, we will sincerely implement these policies through our business activities,’’ says Toyo Tires’ Mitch Tamaki. 

To make sure that companies have adequate support to implement these commitments, GPSNR is working on an implementation guidance document and baseline reporting requirements. These will help translate this commitment into implementation. 

‘’All GPSNR members are required to align with the policy framework, and it is heartening to see companies follow through with the process. We are expecting many others to follow suit in the next few weeks.’’ says GPSNR Platform Director Stefano Savi. ‘’The policies serve as a foundation for a structural transformation not just for one company or rubber plantation, but the industry as a whole.’’

The GPSNR policy framework and published policies of  Continental Tires, Hankook Tire & Technology, Michelin, Nokian Tyres, Pirelli, Sumitomo Rubber Industries, the Toyo Tire Group and Yokohama Rubber can be found here. The rest of the policies will be published shortly. 

-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 per cent 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

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