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. 

Share This Post

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 .

More To Explore

News

Implementation Guidance/Reporting Requirements Stakeholder Category Focus Groups

Through a process led by the Policy Toolbox and Implementation Guidance Working Group (WG1), the General Assembly approved a Policy Framework in September 2020. The Framework outlines specific commitments to sustainable natural rubber that GPSNR company members must include in their public policies or other relevant documents.

The next step is for GPSNR to develop the Implementation Guidance and Reporting Requirements as they pertain to the specific commitments laid out in the GPSNR Policy Framework.  WG1 is engaging consultant(s) to develop the Implementation Guidance and Reporting Requirements. As the Implementation Guidance and Reporting Requirements will vary depending on where a member company sits within the natural rubber supply chain, input will be needed to develop these documents for the following stakeholder categories:  natural rubber producers/processors and traders, tire makers and other natural rubber product manufacturers, and auto makers and other end users.

GPSNR is creating focus groups for each of the three stakeholder categories to enable broader participation of members from each stakeholder group.  Members from other stakeholder groups are also encouraged to join the focus groups to help ensure a balanced dialogue.

Focus groups will work closely with the consultant(s) to ensure that the Implementation Guidance and Reporting Requirements are relevant to the respective stakeholder categories. Once these documents are finalized, they will be voted on at the next General Assembly.

GPSNR is now looking for volunteers to join the stakeholder category focus groups that will be consulted during the development of GPSNR’s Implementation Guidance. There are no limits to how many category members can join the focus groups. Members are encouraged to join at least one focus group.

The entire process is expected to conclude by June 2021.

News

Embracing our Shared Responsibility: GPSNR’s newest Working Group

Before the second General Assembly on 23 September 2020, the GPSNR Executive Committee had approved the creation of a Shared Responsibility Working Group that would be tasked to define the principles of shared responsibility for GPSNR.

The term ‘shared responsibility’ is relatively new to the sustainability scene, and as such, there is currently no commonly accepted definition for it. In general, shared responsibility is a value-driven concept which recognizes that supply chains are structurally imbalanced in terms of value and benefit, risk, burden of compliance, climate change impacts, power of negotiation, and access to information and resources. A shared responsibility approach strives for value, benefits, risks and improvement investments to be equitably distributed across all actors within the supply chain.​

In order to establish the foundational work that would enable the creation of the Shared Responsibility Working Group, the Executive Committee formed a Task Force comprising several of its members. Over a series of weekly calls, the Task Force has developed a Terms of Reference (ToR) and a set of Guiding Principles to inform the work of the new Shared Responsibility Working Group.

It is envisioned that the Shared Responsibility Working Group will draw from the Guiding Principles for Shared Responsibility (currently being developed by the Executive Committee’s Shared Responsibility Task Force), as well as the GPSNR Equity Definition and the studies launched by the Equity Working Group, to develop an implementation framework for the platform with respect to shared responsibility.

Scroll to Top