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.

January 27, 2021

More To Explore

Natural Rubber and the European Union Deforestation Regulation: Perspectives from a young sustainability advocate working on natural rubber

Earlier this year, I joined the Global Platform for Sustainable Natural Rubber (GPSNR) to work with smallholder farmers, civil societies, manufacturers, processors and end users on capacity building for those at the bottom of the natural rubber (NR) supply chain. The primary goal was to equip them with the necessary skills for sustainability reform, with the ultimate goal of cultivating better quality raw materials and fostering greater economic mobility. This journey provided me with valuable insights, enabling me to learn from industry professionals and gain an understanding of sustainability issues from diverse perspectives. In this short article, I would like to share some of my key takeaways from being exposed to GPSNR’s initiatives for a sustainable NR industry and interacting with those from other commodities on similar journeys.

To begin, the adoption of the European Union Deforestation Regulation (EUDR) is widely celebrated as a significant step in combating climate change and demonstrates the EU’s commitment to ensuring a sustainable supply chain. However, my interactions with smallholder members of GPSNR shed light on the concerns raised about the shifting of compliance costs to producers. One smallholder member I work with has often highlighted the challenge of balancing the cost of implementing sustainable practices against revenues. They expressed their desire for tangible benefits, such as receiving premium prices for their products, if they were expected to adopt sustainable farming methods. To truly ensure a sustainable supply chain, it is important for governments and industry players to support and assist the vulnerable groups along the supply chain in overcoming the financial barriers they face. This will help ensure that the burden of compliance costs is not disproportionately placed on their shoulders.

Attending the Partnerships for Forests (P4F) Forum 2023 in London. P4F’s invaluable support has played a pivotal role in empowering GPSNR’s smallholders and fostering sustainable engagement.

Additionally, while initiatives to combat deforestation remain crucial, we must not overlook the importance of addressing social issues and the potential economic consequences of such regulations. At the Amsterdam Declaration Partnerships in May 2023, I had the opportunity to hear a minister from a producing country emphasize the importance of consuming nations recognizing the economic and social consequences. Failing to consider economic and social consequences can have far-reaching effects such as increased poverty levels and inequality. Therefore, a holistic approach that balances all three pillars of sustainability is necessary to safeguard the well-being and livelihoods of those affected while protecting the environment.

Lastly, drawing from my experience during the National Initiatives Strategy meeting, an initiative to enhance social, environmental, and economic welfare on a global scale, it became clear that national initiatives have certain limitations when it comes to supporting multiple commodities simultaneously. Therefore, these initiatives need to prioritize specific commodities in order to ensure practicality and effectiveness. During the meeting, it was collectively acknowledged that national initiatives do not need to take the lead in every solution, but rather offer support to industry and government-led initiatives while fostering effective collaboration to avoid duplication in allocation of resources. This also highlights the significance of industry-led solutions, which can complement the work of national initiatives. Industry players’ proactive measures can help anticipate and mitigate potential risks in the supply chain more effectively, promote sustainable practices, and contribute to the overall goal of combating climate change and complying with EUDR.

As I reflect on my experience with GPSNR, it is evident that sustainability in the NR supply chain has been a longstanding commitment even prior to the introduction of the EUDR. Various initiatives have been taken to promote sustainable practices within the NR industry, including the approval of reporting requirements and the adoption of the GPSNR policy framework. These initiatives aim to encourage GPSNR members to align their practices with GPSNR Policy Framework and thus, establish strong sustainability commitments across the NR supply chain.

This year marks a significant transition for GPSNR as we move from commitment to implementation, focusing on four key fronts. Firstly, our efforts are dedicated to finalizing the GPSNR assurance model, an encompassing framework that establishes sustainability guidelines and standards for the entire supply chain. Additionally, GPSNR is also actively working on implementing the shared responsibility mechanism, wherein the manufacturers collaborate to share the costs of capacity building, fostering an equitable and sustainable NR industry.

Furthermore, GPSNR is expanding its capacity building initiatives in essential areas such as Good Agricultural Practices (GAP), agroforestry, and disease management. These efforts aim to empower local communities in key NR producing regions, particularly in Thailand and Indonesia. GPSNR also implemented a smallholders-inclusive strategy, whereby smallholders members can participate in the decision-making processes, become part of the Executive Committee of GPSNR, and have the voting rights at the General Assembly. This ensures that the voices and perspectives of smallholders are taken into account in the development and execution of sustainable natural rubber initiatives.

Lastly, GPSNR is actively striving to fine-tune decisions that support a smoother implementation of the EUDR, which include shared due diligence systems, joint deforestation analysis tools, and common traceability tools, all funded by manufacturers. These measures will enhance transparency and accountability within the NR supply chain.

Members of the Smallholder Representations and Capacity Building Working Group, which include smallholder members from Thailand and Indonesia, come together in Singapore, bringing their invaluable perspectives to GPSNR workshops in June 2023.

In conclusion, my journey with GPSNR as a passionate sustainability advocate has underscored the significance of collaboration in forging a sustainable NR industry. As we navigate the path forward, it is crucial to address the challenges ahead while maintaining a delicate equilibrium between environmental, social, and economic considerations. The initiatives undertaken by GPSNR, including capacity building, smallholder inclusion, and strategic decisions to support EUDR implementation, reflect a steadfast commitment to sustainability. Together, we can make a positive impact on the global NR supply chain and create a sustainable future.

GPSNR Secretariat June 28, 2023

News

GPSNR Working Groups Update: May 2021

It’s been a busy few months for all the working groups! Here are some of their key updates.

Strategy and Objectives Working Group

In April 2021, the Strategy and Objectives working group completed a significant piece of work by finalising the Desired State Document. This month, the group has received ten key recommendations on equity from the Equity Sub-working group.

These include integrating equity-centric Principles, Practices and Priorities across GPSNR’s procedures and work programs and recommending member companies to do the same. You can find all the recommendations here.

These recommendations go beyond the work of the group itself and cover the role of equity in most GPSNR interventions.

Proforest with Liza Murphy have also submitted the second draft of the Environmental Risk Assessment of Natural Rubber Production and Production and Processing to the group.

Smallholder Representation Working Group

Since August 2020, the smallholder onboarding process has been integrating smallholders into GPSNR’s structures and functions. This month, the smallholder working group conducted a r satisfaction survey for the 28 smallholders within GPSNR to assess the successes and challenges of the smallholder onboarding process.

Of the 28 smallholders at GPSNR, 16 responded to the survey. While structural issues like the digital divide, access to technology and language barriers are causes for concern in smallholder engagement, the survey results were encouraging.

15 out of 16 smallholders responded positively on being asked if they better understood GPSNR’s aims after the onboarding process. They also offered plenty of constructive feedback to improve the onboarding experience for future members. These include improving communications and information sharing, clearer rules and organisational goals, and ways to enhance smallholder engagement on the platform. However, the information that remains unclear for a majority of the respondents centers around the rules of membership and goals of the smallholder representation working group. These will be addressed in the new onboarding programmes that the working group is developing.

The group has also reached out to Thai farmer associations to recruit new members from Thailand, and is also preparing for a workshop to recruit smallholders in Cambodia. At the same time, the group continues to seek responses from the smallholders who haven’t yet completed the survey.

Policy Toolbox Working Group

After receiving some strong proposals for the development of guidance for the Compliance Panel operations, the Policy Toolbox working group is now reviewing these and will have a finalist in the coming few weeks.

For context, GPSNR Statutes mandate the creation of an independent Compliance Panel to ensure that members conform with Statutes, Code of Conduct, decisions, standards and processes, and make recommendations to the GPSNR Executive Committee.

After an extensive selection process, the group has also chosen ZSL to work on the Reporting Requirements development as they have significant experience in similar projects. Simultaneously, they have completed the first round of focus group calls and surveys for the development of the implementation guidance.

Capacity Building Working Group

After presenting a funding mechanism of capacity building projects to the Executive Committee earlier this month, the Funding Taskforce in the Capacity Building working group has finalised the process and will be broadcasting it to all members in July 2021.

This funding mechanism is a temporary measure which will support GPSNR’s capacity building initiatives while the larger funding model is finalised.

At the same time, the Good Agricultural Practices (GAP) taskforce has finalised GPSNR’s GAP principles.

Traceability and Transparency Working Group

The group has put together a draft input on the Implementation Guidance from a traceability perspective this month.

After conducting discussions on traceability and data requirements for GPSNR, this is also developing data collection and reporting standards together with the Policy Toolbox working group.

Shared Responsibility Working Group

Having finalised the Implementation Framework for Shared Responsibility, the group has finalised a first round discussion of the problem statements for the natural rubber supply chain.

This has allowed the group to identify the causal pathways and root causes of the issues affecting shared responsibility investment, supply chain data transparency and reinforcing sustainable supply chains (key focus areas for the group). With this step completed, the group is now looking at proposing solutions for these issues that GPSNR can implement. This first draft of solutions will be soon shared with the different categories members for an initial informal consultation.

GPSNR Staff May 25, 2021