Smallholders Representation Working Group Update – December 2019

On December 18th 2019, the first rubber smallholder with 2.4 hectares of rubber farm from Thailand has submitted his application form to GPSNR after the characteristics of GPSNR smallholders have been finalized together with the approval of onboarding procedure by the EC.

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The Smallholders Representation Working Group has agreed to propose the new main characteristics for potential representatives of GPSNR smallholders as below:

Smallholder: individual natural rubber farmers with all following characteristics:

  • The primary source of income for the smallholder is the farm (not only Natural Rubber); 
  • The Natural Rubber production unit size is less than 50ha (although the farm may be larger);
  • Profits from the farm accrue primarily to the owner of the farm and their family.

The new definition combines the qualitative and quantitative aspects with the intention to offer a pragmatic and standardized definition. The working group members understand that average farm size differs from country to country, hence having a universal threshold in farm size might not guarantee that the farmer is a small grower in that particular country. However, a quantitative indicator should be in place in order to give an objective and clear understanding to all audiences. The threshold of 50 hectares is established as an interim quantitative indicator based on the discussion in the working group that more than 80% of natural rubber supply comes from the farm which is smaller than 50 hectares.

The Country Champion is collecting application form from the smallholders that have been nominated durinng GPSNR Smallholder Workshop.  While membership fee is waived to smallholder member, funding to participate the General Assembly in March 2020 in Singapore is limited to 20 seats. The Working Group will further look at the profile of the smallholders  to design the criteria for funding mechanism.

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Updates on the GPSNR Baseline Reporting Requirements Pilot Test

In early June 2020, GPSNR member companies were invited to participate in pilot testing a set of draft Baseline Reporting Requirements developed by the Policy Toolbox and Implementation Guidance Working Group. Along with the newly approved Policy Components, the Baseline Reporting Requirements will constitute a key requirement for GPSNR membership. 

“By having robust reporting requirements and a system to transparently report on progress, GPSNR member companies will be able to demonstrate leadership, monitor and further the effective implementation of their sustainability commitments, and ultimately drive positive impacts in the natural rubber value chain,” explained Amy Smith, Policy Toolbox Working Group Co-Chair.

The Working Group proposed pilot testing the Baseline Reporting Requirements with a group of volunteer member companies to better understand any constraints companies may have in obtaining and sharing certain information. The goal of the pilot was to refine and finalize the Baseline Reporting Requirements based on company feedback.

“In addition to pilot testing with member volunteers, we will also be assessing and evaluating the potential of existing certification schemes and reporting systems to adopt as part of GPSNR reporting requirements,” added Policy Toolbox Working Group Co-Chair, Pierre Bois d’Enghien. “This evaluation, together with the feedback we received from the pilot, will help us build a reporting system that is credible and useful for all stakeholders.” 

We are pleased to announce that a total of 11 GPSNR members volunteered for the pilot test. These members, who include Continental AG, Ford Motor Company, Halcyon Agri Corporation Limited, Hevea-Tec Indústria e Comércio LTDA, Industrias de Exportacion Universal, S.A., ITOCHU Corporation, Michelin, SIPH, Socfin SA, Sumitomo Rubber Industries Ltd, and The Yokohama Rubber Co., Ltd., represent all the membership categories to which the Baseline Reporting Requirements would apply. 

In mid-July, the reporting platform was opened to the pilot participants, who were given three weeks to submit the required data. Concurrently, the Secretariat conducted one-on-one interviews with the participants to gather feedback about their experience using the baseline reporting platform as well as their suggestions on ways to improve the process. 

“Our volunteer member companies were instrumental in helping to refine the Baseline Reporting Requirements and ensuring that the platform’s reporting mechanisms are relevant and meaningful for all our members,” said GPSNR Director Stefano Savi. “This improvement will help us achieve our shared objectives of ensuring a sustainable and equitable natural rubber supply chain.”

Following the approval of the policy requirements at the General Assembly in September, the Policy Toolbox Working Group will review the compiled company feedback from the pilot and the member consultation process conducted earlier this year, and will refine and finalize the Baseline Reporting Requirements for Executive Committee approval by the end of 2020. Once the Executive Committee has approved these requirements, ordinary company members will submit their baseline reporting data for 2020 to GPSNR in Q1 of 2021.

The Baseline Reporting Requirements will enable GPSNR to understand what its member companies currently know about their natural rubber supply chains, and what they are doing to move towards sustainable practices. Having a rigorous and transparent reporting process in place will strengthen the credibility of GPSNR and contribute to the development of a robust Assurance system for the platform.

Members

Presentation on the High Conservation Value Approach (Members Version)

In discussing the proposed member requirements and reporting requirements, the Policy Toolbox Working Group has touched frequently upon the topics of High Conservation Value (HCV), no deforestation, no conversion of non-forested ecosystem, and other issues around developments on post-disturbance vegetation/ land cover. 

To establish a common understanding about HCVs, the High Conservation Value Resource Network (HCVRN) Secretariat took the initiative to organize a video presentation to the Working Group members on the HCV Approach. The presentation touched on governance and historical aspects of the HCV Approach, and its implementation in forest and non-forest ecosystems in the landscape, concession and smallholder contexts.

Watch the presentation here.

Download the slide deck here.

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