Secretariat Update – January 2020

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

The Topic Talks series continued on the 17th of March with Dr. Michael Steuwe from WWF US and Gerald Tan from HeveaConnect presenting on the Sumatran Rubber Pilot.

The Sumatran Rubber Pilot (SRP) is a voluntary, self-financed collaboration of rubber supply chain players and technical experts interested to facilitate the production and trade of transparent and sustainable natural rubber. The participating processing mills, tire makers, civil society organisations, technology providers and financial institutions have three major objectives:

• Demonstrate how rubber’s downstream can work together to make its upstream more sustainable.
• Identify, test, evaluate, and report on what it takes to achieve, and how to pay for transparent sustainable natural rubber supply chains.
• Develop “Proof of Concept” approaches from and for GPSNR discussions on policy requirements and implementation, transparency and traceability, capacity building, and shared responsibility.

Within a few months of the project launch in July 2020, SRP’s four rubber processing factories, managed by the Halcyon Agri and ITOCHU groups, had traced up to 1 year of rubber supplies to the village and/or sub-district of origin based on self-declarations by their supplying dealers. These approximate origins of the rubber sources were filtered through WWF Indonesia’s new environmental risk assessment and management tool which identifies High Conservation Value Areas and High Carbon Stock Forest for the whole island of Sumatra. The results allow processors and their respective downstream supply chains to focus their sustainability work with farmers on priority areas.

The SRP partners are enhancing dealer self-declarations with digital apps such as CropIn and Hamurni to assess farms’ potential environmental, social, equity, labour and legal issues accurately and to address them.

As GPSNR adopts principles and criteria for what constitutes transparent and sustainable rubber, the risk assessment algorithms will be adapted to flag compliant rubber accordingly. This is increasingly important for rubber’s downstream as companies’ Environmental, Social, Governance (ESG) impacts are becoming key evaluation criteria for investors and financiers who will demand the disclosure of the relevant information. In a parallel development, new supply chain laws will require major companies like the world’s car and tire makers to be responsible for the environmental and social impacts of their supply chains. The collection and analysis of detailed data on upstream supply chains will have to become an essential part of doing business and SRP partners are working to respond appropriately to these changes.

While continuing to focus on increasing the resolution of tracing rubber to its origin and collecting the respective data, SRP will now begin finding ways to best address the social, equity, labour, and legal issues that may have come up in supply chain assessments. 

The SRP is a voluntary, open and flexible platform of like minded partners interested in testing a diversity of approaches to achieve supply chain transparency and sustainability, and welcomes interested rubber supply chain actors to reach out and discuss how they might join the collaboration. GPSNR members interested in participating in the SRP should reach out to the GPSNR Secretariat to get involved in the project.

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.