Secretariat Update – January 2020

GPSNR recognizes the need to work towards economic sustainability within the natural rubber industry, ensuring that the earnings of millions of smallholders and farmworkers are enough for them to enjoy a decent standard of living. This is why ensuring equity along the value chain is one of our 12 principles critical to achieving a desired, sustainable state of the natural rubber industry. 

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We can draw parallels to the coffee industry, which similarly comprises small plantation owners and more profitable downstream actors. In his recent sustainability report on the coffee industry, economist Jeffrey Sachs’ proposal for a global fund to fill the financial gaps for sustainability investments in coffee producing regions garnered vivid discussion.  

Currently, low and unpredictable rubber prices are a constraint to smallholders who produce the bulk of global rubber output. Transparency is critical in the purchasing process, and this kind of disruption typically comes hand in hand with embracing new strategies. 

Under the purview of the Strategy & Objectives Working Group, capacity building and extension services have been identified as potential measures to mitigate the root causes of the social and environmental impact from the natural rubber supply market. Implementing these at scale for the whole industry will require considerable financial investment.   

With the above considerations in mind, GPSNR is exploring new approaches to funding that would not be borne by a single segment of the industry, but in a manner incorporating the spirit of our shared responsibility. 

Enterprise Singapore organized an industry meeting on 14 January 2020, and invited GPSNR and Singapore Exchange to better understand the available options of an e-trading platform that could contribute to our funds. The meeting also discussed what could be the options, through GPSNR, to increase the uptake of the e-trading platform.

Tapping the vast potential of digitalization could present an exciting avenue of possibilities for GPSNR to better advance our vision of a fair, equitable and environmentally sound rubber value chain.      

The meeting was initiated by representatives from Enterprise Singapore, and panel speakers comprised representatives from GPSNR, Singapore Exchange and HeveaConnect. Participants included GPSNR members as well as other Natural Rubber buyers, producers, processors and traders .

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Members

GPSNR Working Groups Update: January 2021 (Members Version)

Strategy and Objectives Working Group

In our December update, we reported that the Working Group would be conducting interviews with the shortlisted candidates who had responded to the Request for Proposal for a study on environmental impacts, and risks, in the natural rubber value chain. The Working Group has since completed their interviews and will soon be making a decision on who to award the contract to.

The refinement of GPSNR’s Theory of Change is also underway, with a planning call having taken place on Monday this week. The call involved nominated representatives  from across all GPSNR’s Working Groups, working to chart the plan for a collaborative effort to refine the Platform’s Theory of Change.

In other news, several Thai smallholders have been onboarded into the Working Group and, after an introductory call with the Co-Chairs,  are now participating in the Working Group calls.

As the Equity Sub-Group prepares to present the living income studies to GPSNR members, more details will be conveyed to members nearer the date. 

‘Policy Toolbox’ Working Group

Following the approval of the GPSNR Policy Framework, the Policy Toolbox Working Group will develop Implementation Guidance and future Reporting Requirements as they pertain to the specific policy components in the framework.  

In order to achieve this, a Request for Proposal (RFP) has been posted for a fixed term consultancy to facilitate the development of the Implementation Guidance and Reporting Requirements for each of the three stakeholder categories: natural rubber producers/processors and traders, tire makers and other natural rubber product manufacturers, and auto makers and other end users.  GPSNR members are invited to circulate the RFP to any relevant contacts who might be interested in submitting proposals for this work. The deadline for submission of proposals is 5 February 2021.

The Implementation Guidance and Reporting Requirements will vary depending on where a member company sits within the natural rubber supply chain. As such, GPSNR will invite the creation of category focus groups to enable broader participation of members from the three stakeholder categories (although focus groups can also include members from other stakeholder categories). The details on recruitment for these focus groups will be announced sometime next month.

Apart from facilitating the development of category-specific Implementation Guidance by reviewing guidance and requirements from other initiatives, the consultant will also facilitate discussion sessions with the focus groups to finalize the implementation guidance for each stakeholder category.

‘Capacity Building’ Working Group

In 2020, the Working Group proposed national capacity building strategies for four countries as a starting point. Following the Executive Committee’s endorsement of the strategies, the Working Group is embarking on the next step of putting these plans into action on-the-ground. The Working Group is looking for interested members to form National Sub-Groups mandated to oversee, guide and implement the strategies. The Working Group will conduct a webinar on 17 February to share the strategies with GPSNR members. Check out our article, ‘From Strategy to Implementation: Next Steps for Capacity Building’ for more on this story.

‘Traceability and Transparency’ Working Group

The two studies around traceability and transparency tools and technology commissioned in 2020 by the Working Group are ready to be shared with GPSNR members. Read our article, ‘Seeing Through to a Solution: Traceability and Transparency Tools and Technology Studies’ for more on this topic.

Smallholder Representation Working Group

The Working Group’s revised Terms of Reference (ToR) was approved by the Executive Committee during its monthly call in January. Under the revised ToR, the Smallholder Representation Working Group has identified two main objectives for its work moving forward: the first, to support the creation of an active smallholder community within GPSNR and the second, to extend the on-boarding of smallholders from rubber producing countries. The Working Group will be planning its activities for the year head, ensuring that they support and contribute towards achieving these new objectives. 

As a start, the Working Group will be looking to onboard smallholder members into the group, as well as facilitate the organization of the next Smallholder Category Call.

Members

Member Consultation on proposed GPSNR Policy Components and Baseline Reporting Requirements (Members Version)

Natural rubber faces a similar set of environmental, social and economic issues as other agricultural commodities such as palm oil, but the spotlight on sustainability has only been recently turned towards this key raw material, 70% of which goes into tire production. The launch of GPSNR marked a significant step towards developing sustainable standards for natural rubber, with member organizations making a commitment to 12 Sustainable Natural Rubber Principles

The Policy Toolbox Working Group was established to develop a guiding framework for GPSNR members to implement policies and practices that align with the 12 Principles. Two key documents, the Policy Components and Baseline Reporting Requirements, have emerged after a year of discussion and drafting. 

The Policy Components outline specific commitments that GPSNR company members should include in their sustainable natural rubber policies, while the Baseline Reporting Requirements indicate qualitative and quantitative sustainability data to be reported to the Secretariat for the first year of reporting. 

A members webinar was held on 16 June, where the Co-Chairs of the Policy Toolbox Working Group explained the purpose, process and next steps surrounding the two documents. 

Several members have volunteered to participate in an ongoing pilot testing of the Baseline Reporting Requirements. The goal of the pilot is to refine and finalize the Baseline Reporting Requirements based on company feedback.

The proposed Policy Components and Baseline Reporting Requirements are now open for member consultation until 3 July 2020.

All GPSNR members are invited to download the draft documents from the links below and submit your feedback by accessing this link.

Additionally, you may view the recording and slide deck of the 16 June webinar from the links below.

Download Policy Components 

Download Baseline Reporting Requirements

View 16 June webinar recording

View 16 June webinar slide deck

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