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. 

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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

Members

GPSNR Working Groups Update: December 2020 (Members Version)

GPSNR Members Webinar: Recording and Slide Deck

GPSNR members who missed the Executive Committee and Working Groups Update webinar that was held on 2 December can view the recording of the webinar or download the slide deck for reference.

View webinar recording or download slide deck

Strategy and Objectives Working Group

The Working Group has received several bids in response to the Request for Proposal (RFP) for a study on environmental impacts, and risks, in the natural rubber value chain that was published in November. The Working Group has shortlisted three candidates and, as part of the evaluation process, will be conducting with these candidates in January 2021 before awarding the bid to the successful candidate. 

The Working Group is also starting on the Theory of Change document update, an exercise which will involve all other Working Groups. This will take place in January 2021. The Equity sub-Group is preparing summary documents for the living income studies and is planning to present the studies to GPSNR members in early 2021.

‘Policy Toolbox’ Working Group

The Working Group has finalized the Baseline Reporting Requirements and these will go to the Executive Committee for review. The Working Group is also developing a Request for Proposal for a consultant to work on the implementation guidance and reporting requirements.

‘Capacity Building’ Working Group

Since the last update, the Good Agricultural Practices (GAP) Task Force has had their first kickoff call and is beginning the work to identify and/or refine guiding principles for GAPs appropriate for the sustainable production of natural rubber.

The Working Group is also engaging the Executive Committee on their comments regarding the proposed capacity building strategies for four focus countries.

‘Traceability and Transparency’ Working Group

In early December, the Working Group onboarded smallholders from Indonesia and Côte d’Ivoire into the group, with the smallholders participating in their first meeting on 10 December. 

Aside from reviewing the Working Group’s Terms of Reference (ToR) and its objectives moving forward, the Working Group will also be starting to develop recommendations for members on traceability and transparency tools in early 2021.

Smallholder Representation Working Group

The revised ToR for the Working Group is undergoing a final review, following which it will be sent to the Executive Committee for approval. 

The Working Group has also formalised a document that defines the role and key tasks of a Country Champion. So far, Country Champions have been actively involved in organizing and arranging national calls, supporting smallholder engagement, and providing technical and linguistic assistance.   

As part of the Working Group’s revamp, it will be undergoing a membership refresh. Part of this will also involve smallholders being onboarded into the Working Group in 2021.  The Working Group is also looking into onboarding smallholders from Cambodia. Any GPSNR members who have operations in Cambodia or partners working in Cambodia who can help to identify potential smallholders for an onboarding workshop are welcome to reach out to the Working Group’s Co-Chairs, Ulrich Antoni and Julian Oram.

News

A First Look at GPSNR’s second Executive Committee

GPSNR’s Executive Committee comprises Ordinary Member representatives of each membership category, according to the newly approved allocation proposed in the resolution for a standalone category for natural rubber smallholder producers. Each membership category is allocated a total of three seats in the Executive Committee, with representatives chosen by elections within the category.

The Executive Committee serves as a center for overarching ideas of the Platform, and Executive Committee members bear the responsibility of raising awareness of emerging issues to their respective categories, initiating consultation sessions, and encouraging active participation in GPSNR’s Working Groups and activities.

The members of the second GPSNR Executive Committee, according to category, are as follows:

Producers, Processors & Traders

SIPH – represented by Marc Genot (Managing Director, Societe Africaine des  Plantations  d’Heveas SA)

Socfin – represented by Philippe De Groote (Head of Agronomy – Rubber)

Southland Global – represented by Tim Leong (Associate Director)

Tire Makers and Other Natural Rubber Product Makers

Bridgestone Corporation – represented by Andy Thompson (Global Director, Sustainability Strategy, Policy & Integration) 

Continental AG – represented by Claus Petschick (Head of Sustainability)

Michelin – represented by Segsarn Trai-Ukos (Managing Director, Société des Matières Premières Tropicales Pte Ltd)

Car Makers, Other Downstream Users, and Financial Institutions

BMW Group – represented by Vanessa Buchberger (Purchasing and Supplier Network, Sustainability, Innovation Management, Cooperations)

Civil Society

HCV Resource Network – represented by Arie Soetjiadi (SEA Representative)

Mighty Earth – represented by Margaret Kran-Annexstein (Campaign Director)

WWF – represented by Amy Smith (Deputy Director, Forest Sector Transformation)

Smallholder Producers

Baroan Roland – Côte d’Ivoire

Dang Quoc Thong – Vietnam 

Soontorn Rakrong – Thailand

The Executive Committee holds a monthly conference call to discuss proposals put forth by the Working Groups, and other issues pertinent to the Platform.

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