The Start of Change in the Natural Rubber Supply Chain

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By James Chang Wen Jie, Michelin

In February 2022, the Global Platform for Sustainable Natural Rubber released its Theory of Change (ToC), a document which articulates how the platform aims to positively impact the supply chain and achieve its desired states.  As a representative of my company Michelin at the platform, I have been part of this intensive, fulfilling task for the last year.

While I had some previous experience with ToC frameworks for individual projects, this was the first time I was engaged in one at a multi stakeholder platform level. The major difference here, and one emblematic of the ‘GPSNR multi-stakeholder experience’, was that we needed to integrate as many perspectives and expertise as we could, from all of GPSNR’s working groups and member categories. After all, bringing this theory of change to life is a task that will eventually fall on every stakeholder represented in GPSNR. If we wanted a document that the platform could truly rally around, we needed a co-creation process built on inclusivity as well as accountability.

My fellow task team members Martin Hollands (BirdLife International) and James Laimos (Goodyear) can attest to the fact that the journey was hard work. Yet, over the two half-day platform workshops and numerous additional consultation sessions with working group chairs and interested members, the strength of the platform showed itself in the depth of insights provided during discussions, and in the rigor of the final document. I am confident we would not have arrived where we did without the unique mix of experiences and operating contexts that members had. As a representative of my organization, the exposure to a wide range of perspectives from all along the natural rubber value chain is also a valuable input to our own sustainability journey, alongside and in addition to GPSNR.


Image 1: A screenshot of me presenting how GPSNR’s Desired State will be aligned with our Theory of Change at a workshop in 2021

The most visible output of this work is this interactive web-document accessible on the GPSNR website. While it is an easy and simple introduction to our work, it is nonetheless a result of a rigorous and intensive process, which required the investment of many stakeholders (including many hours of hard deliberation by the task team!). This of course belies the question:

Does theory matter and was this time really worth it?

It’s a question the task team asked itself a number of times as well. However, my own journey in sustainability has taught me that while it is tempting to jump straight to action, issues on the ground are often more complex than they seem, and well-meaning actions can lead to unintended outcomes. We therefore not only need to know where we are going, but also need to map and understand the series of events or actions that will get us there. A theory of change exercise allows us to dig deep into the root causes of the current situation, leveraging on the experience and expertise we have across working groups and stakeholder categories to work on plans that tackle issues at their core.

Articulating the theory of change at this juncture in GPSNR’s journey also allows for a ‘stock take’ before the platform accelerates into implementation. The journey towards sustainability in the natural rubber supply chain is a complex one which requires a careful balance of environmental, social, and economic spheres. It also requires coordinating work on multiple action areas (i.e., the work of GPSNR’s many working groups) to make sure that our activities truly address identified root problems without any major gaps.

In fact, these conversations did end up identifying some gaps, and spurred us to explore solutions. For example, a member brought up the point that real impact across the world’s 6 million smallholders would mean that GPSNR would need some way to multiply its impact beyond farmers benefited through direct involvement in GPSNR or its capacity building programmes. Further conversation and the sharing of case studies from experiences in other commodities identified that a key intervention to tackle will be to empower networks of farmers that can promulgate good practices in, and beyond their communities.

As the world emerges from the aftermath of the pandemic and unprecedented supply chain disruptions, being clear on what we need to do to truly make an impact is more important than ever. I hope that interacting with GPSNR’s Theory of Change will give you a good idea of where we’re headed, and how we hope to get there!

More To Explore

News

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

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.

Members

Following the Conversation with GPSNR Topic Talks! (Members Version)

The GPSNR Topic Talks series is organised by the GPSNR Secretariat and presented by GPSNR members. The presentations cover several themes around sustainability and the global natural rubber supply chain.

The series kicked off on 27 October with a presentation by Philippe Thaler from CIRAD, on the implications of EU legislation on imported deforestation. View the webinar recording or download the slide deck from this webinar using the links provided. 

The second webinar’s theme was on smallholder solutions and featured two separate presentations. “A landscape-level approach to inclusion and capacity building for rubber smallholders” was presented by Rizki Permana from SNV, Widyantoko Sumarlin from Kirana Megatara, and Tony Hill from Proforest. Speaking from experience with the Kelola-Sendang project in South Sumatra, the presenters explained how SNV, with Proforest support, worked with rubber smallholder groups in the jurisdictional initiative, which helped to forge new links between the smallholders and a crumb rubber factory buyer in the Kirana group. 

Next, “Exploring Smallholder Solutions in the Rubber Sector – The Processing and Sale of Rubberwood to Support Smallholder Financing in Indonesia” was presented by Amy Smith from WWF, Gerald Tan from HeveaConnect, with Renée Corstens and Remco Geervliet from Financial Access. This presentation shared the findings of a study which analyzed the potential of rubberwood to serve as a mechanism to support smallholder financing in Indonesia. You can view the webinar recording or download the slide deck for this webinar using the links provided.

The next theme is Assurance and smallholders, and how we can learn from existing schemes. PEFC’s CEO Ben Gunneberg presented a webinar last night, elaborating on PEFC’s approach to standard-setting and certification. He also showcased PEFC’s current collaborative projects with their national members and companies to support smallholder producers, and how these will benefit GPSNR members and the work GPSNR is engaged in. You can view the webinar recording or download the slide deck for this webinar using the links provided.

Continuing with the same theme of Assurance and smallholders, FSC will be presenting on 8 December, an overview of smallholder certification solutions. Members may register for the webinar in the subsequent section of this article.

We are also pleased to announce an addition to the Topic Talks lineup: ‘REDD+, are carbon credits impacts overstated?’. This new presentation, jointly organized with GIZ and which will be held on 10 December, puts the spotlight on reducing emissions from deforestation and forest degradation (REDD+) with an introduction to the REDD+ methodology, followed by a discussion with the authors of a recently published study, “Overstated carbon emission reductions from voluntary REDD+ projects in the Brazilian Amazon”. Members may register for this Topic Talk in the subsequent section of this article.


Assurance and Smallholders: Learning from Existing Schemes Part 2

“FSC Smallholder Certification Solutions”

8 December | 7PM (GMT+8)

Click here to register

Presented by: FSC

The presentation will cover FSC’s solutions for smallholders to become certified. First, an overview of the evaluation of certification solutions for smallholders will be given. FSC’s existing solutions will be covered, with a focus on the benefits for FSC Group Certification. Next, solutions in the pipeline will be covered, addressing the impact of pilot projects and highlighting success stories.

REDD+, are carbon credits impacts overstated?  

10 December | 3PM (GMT+8)

Click here to register

Jointly Organized by: GIZ 

Presented by: GIZ and authors of the study

Using REDD+ projects to offset carbon emissions through avoided deforestation and the financial support of local communities is popular but also highly debated. Especially, voluntary REDD+ projects are regularly criticized as inefficient or even greenwashing. This presentation will provide an introduction to the REDD+ methodology. The authors of a recent critical study, “Overstated carbon emission reductions from voluntary REDD+ projects in the Brazilian Amazon” will then present their findings and suggestions as a basis for discussion.