Seeing Through to a Solution: Traceability and Transparency Tools and Technology Studies

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Deforestation, land grabbing, and human and labour rights violations have been associated with the production of natural rubber. In order to transform the global natural rubber supply chain into a fair, equitable and environmentally sound one, it is crucial that we work to reduce such social and environmental risks. This is by no means an easy feat with about 6 million smallholder farmers producing around 85% of the world’s natural rubber; the complexities of the supply chain make it difficult for buyers to ensure that sustainable practices are employed for rubber cultivation and processing. Recognizing the importance of enhancing traceability and transparency in the natural rubber supply chain to support the identification and mitigation of social and environmental risks, GPSNR established the Traceability and Transparency Working Group.

Over the past few months, the Working Group has commissioned two studies around traceability and transparency tools and technology. The reports were submitted by the consultants at the end of October 2020. The findings from each report are summarized below.

Spatial Data & Mapping Tools for Detecting Deforestation and Threats to HCVS Areas in Rubber Production Landscapes

Report developed by Zoological Society of London (ZSL)

This report reviews a variety of spatial mapping tools and approaches which may be employed by GPSNR and its members to address deforestation and degradation risk in rubber supply chains.

The key recommendations from this study are that GPSNR members should pool resources to collectively commission landscape-level HCV and HCS screening for key rubber-producing countries and these should be updated periodically. Spatial data maps from this process should be made publicly available to encourage cross-sectoral collaboration on tackling deforestation.

HCV/S datasets may then be integrated into satellite monitoring platforms and combined with near-real time monitoring of deforestation and forest degradation. This will allow accurate spatial analysis of the impacts of rubber production in key forested landscapes. GPSNR members may select different satellite monitoring tools or service providers, based on their own needs and budget. For upstream actors closer to the source, satellite monitoring may allow for preventative measures to be taken at the early stages of deforestation.

The full Executive Summary can be viewed here.

Review of Transparency & Traceability Tools and Solutions

Report prepared by e-Audit Hong-Kong Ltd

This report presents options on supply chain transparency and/ or product traceability solutions that GPSNR may consider as well as recommendations to select the most suitable transparency/traceability solutions for the GPSNR initiative.

A range of solutions currently implemented in commodity industries similar to the natural rubber industry were reviewed and evaluated, resulting in the identification of several key elements that will need to be considered to select the most suitable and cost-efficient solution.

The report also considers three potential infrastructure options (centralized, hybrid and decentralized) that should be considered as they have profound implications on the range of supply chain transparency and product/batch traceability solution(s) that GPSNR may consider to adopt.

This report concludes that the technology currently available makes it possible for all GPSNR key requirements to be integrated into one single solution. However, such a centralized solution may be costly and cumbersome to implement. At this stage of development of the GPSNR initiative it is recommended that GPSNR starts implementing a more flexible hybrid solution, with a centralized infrastructure/ data hub focused on reporting and monitoring of clearly defined performance KPIs, that can be connected through APIs to existing field level risk assessment, risk mapping and traceability solutions currently implemented by GPSNR members.

The full Executive Summary can be viewed here.

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Strategy and Objectives Working Group Update – March 2020

In driving forward the progress on the Theory of Change (ToC) and Desired State, the Chairs of the Strategy and Objectives Working Group are expected to lead discussions with the other Working Group Chairs. These discussions will focus on mapping the areas of work currently undertaken by the respective groups to the relevant sections of the ToC. Pulling together the detailed thinking within each group will enable the Working Group to flesh out the elements of each strategy and the linkage between each individual component. To package the ToC in a more user-friendly format, the Secretariat has developed a visual representation of the ToC, which gives a broad overview of the concept while allowing for a deeper dive into the details. The Working Group has reviewed the first draft of this document, and will be working with the Secretariat to finetune it. 

Following the initial survey that had gone out, consultant James Griffiths has started interviewing stakeholders on social risks priorities and mitigation solutions as part of the study on Human Rights and Labour Rights’ risk mapping in the global natural rubber value chain

The Equity sub-Group had their inaugural meeting this week. The members of the group agreed on the need to work with urgency and consider the approach of having a different work plan, one which would enable a move towards recommendations on a rapid basis. The importance of engaging governments was also highlighted in the discussion. The sub-Group will be meeting again next week to continue the conversation on equity.  

‘Policy Toolbox’ Working Group

The policy components and baseline reporting requirements are being circulated for comments among the various membership categories. The Producers, Processors and Traders had a teleconference organized by Socfin and Southland Global, and will also be collecting comments via email. The Tire Makers are submitting their inputs through an online survey and emails. The OEM members have also discussed the documents in a call and have consolidated their comments. Civil Society Organization members are engaged in discussions on these elements as well. The Working Group anticipates that it will be able to submit the deliverables to the Executive Committee for approval in May.

‘Capacity Building’ Working Group

In recognition of the need to prioritize an inclusive and pragmatic approach towards capacity building, the Working Group has decided to establish several regional sub-Working Groups, each of which will be responsible for developing country-specific capacity building objectives. The Working Group is exploring getting smallholders involved in some of these regional sub-Working Groups, which would be the first instance of smallholder participation at the working group level, and would be informative in the ongoing discussions on ways to integrate smallholders into the activities of GPSNR. The terms of reference for the regional sub-Working Groups are in the process of being finalised. 

The Working Group hopes to achieve greater alignment with the Theory of Change (ToC) developed by the Strategy and Objectives Working Group, through the establishment of ToCs at the working group and sub-working group level. This would allow each working group to contribute to the design of GPSNR’s ToC, with the aim to achieve the Desired State. Working groups can delve into more precise levels of identifying capacity building objectives and developing implementation plans to address the gaps in various target groups within a specific country.

‘Traceability and Transparency’ Working Group

After consulting with the Policy Toolbox Working Group on areas of risk, the finalized terms of reference for the two pilot proposals are being circulated for final feedback within the Traceability and Transparency Working Group.

The pilot study on satellite mapping and machine learning aims to make use of historical and current data and new technology to determine the risk of potential deforestation, along with other social and environmental risks that are the result of deforestation.

The traceability and transparency tool comparison study will assess, among others, the ability of the tool to identify risk and/or contribute to a risk assessment in the social, environmental and legal categories. 

The proposals will be submitted to the Executive Committee for approval in April. Moving forward, the Traceability and Transparency and Policy Toolbox Working Groups will work closely together on understanding risks in the natural rubber supply chain..

News

GPSNR Working Groups Update: November 2023

Strategy and Objectives Working Group: Following the approval of the Assurance Model resolution (5b), the Assurance Model Task Force is working with ASI in developing the Assurance Model including aligning with current normative documents, engaging members for consultation, and pilot testing.

In parallel, the Risk Subgroup hosted a webinar focused on traceability and shared findings from their traceability pilot projects. 

The Risk subgroup has decided to temporarily pause its activities until December, allowing time for ASI to complete the Assurance Model alignment. ASI has commenced its task of aligning key GPSNR documents. These documents aim to lay a solid foundation for the complete Assurance Model. Upon the completion of this alignment process, the fully drafted Assurance Model will be presented to the members for consideration and approval.

Smallholders Representation and Capacity Building (SCB) Working Group: The Indonesian subgroup presented their quarterly reports for two GAP Coaching projects and one Disease Fighting project on October 27, 2023. In addition, GPSNR secured a joint collaboration letter with RAOT and invited all member companies to participate in the Thailand GAP coaching project in Bueng Kan and Chiang Rai provinces. The Thailand agroforestry project also received additional funding for further sub-projects.

The Digital Knowledge Sharing Platform (KSP) task force conducted a pilot user acceptance test and initiated socialisation sessions and training for smallholder farmers in Indonesia. They also announced a Request for Proposal (RFP) for KSP’s third phase, focusing on content development, with submissions due by November 24, 2023.

Rubber agroforestry workshops were held in Côte d’Ivoire from October 25-27, 2023, and information on capacity-building projects open for funding was shared with all members. The SCB WG will continue to oversee all ongoing projects, with efforts to plan logistics for smallholder representatives attending events in Thailand and France. The Thailand agroforestry subgroup is working on a supplemental agreement for additional projects.

Members interested in the Thailand GAP project in Chiang Rai and Bueng Kan are encouraged to contact cheewei@gpsnr.org for more information. The KSP task force plans to continue socialisation sessions and training in Indonesia and Thailand, aiming for the final user acceptance test by the end of November 2023. By the end of November, the task force will begin evaluating proposals for KSP’s third phase.

The Income Diversification and Rubber Agroforestry task force is preparing for its second Indonesian agroforestry workshop of 2023, scheduled for November 22-24. Additionally, a webinar is planned for November 30, 2023, to present findings from the HCSA-HCVN field trial.

Policy Toolbox Working Group: On November 22nd, WG1 met to discuss the  quantification of the RR, data aggregation methodologies, and updates relating to the RR in the context of the Assurance Model. During the meeting, operational timelines and survey to gather information were set up.

Currently, Agridence is developing the digital platform, and the Secretariat plans to provide updates on the RR to ensure the platform is operational before the 2024 reporting cycle.

WG1 is also working on revising the Code of Conduct to include non-conformance measures for failing to update the Reporting Requirements, in line with the non-conformance measures approved by the Executive Committee in 2022.

Lastly, following the approval of the revised reporting requirements, the WG will proceed to develop the disclosure requirements for the Year 3 reporting cycle.

Shared Responsibility Working Group: The Assurance Model will be meeting with ASI to provide feedback on the proposed Assurance Model under development. Additionally, the Working Group has an open co-chair seat and is calling for volunteers to fill this position.

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