Secretariat Update – November 2019

Strategy and Objectives Working Group

The working group includes both the Risk subgroup and the Assurance Model task force and is currently working on some exciting stuff!

The Risk subgroup has been busy, with consortiums Agridence and Koltiva having kick started their pilot field trials on the traceability tools. They are actively pursuing the next steps for the deliverable from ASI on the Risk Assessment Framework. This includes conducting internal piloting and cross-walking the tool with GPSNR commissioned studies to identify gaps. Lastly, second in an ongoing series, the Traceability Tools Webinar will be occurring on 26th April and you may register for it here. 

The Assurance Model taskforce will be meeting to discuss updates on KPI alignments, due diligence system and the members progress model. 

Smallholders Representation and Capacity Building (SCB) Working Group

The SCB Working Group has proposed a new structure with three co-chairs and this has been officially endorsed. The next Working Group meeting will take place on 27th April, where they plan to formally endorse the Terms of Reference. 

Updates on the Income Diversification and Rubber Agroforestry taskforce, the strategy for 2023-2024 has been endorsed, and the taskforce will continue their work on planning the schedule and sequence of workshops and finalising the contractual plan. 

On the Digital Knowledge Sharing Platform front, Koltiva will work together with the taskforce to start developing the app and its features. In upcoming news, the Thailand Good Agricultural Practices (GAP) subgroup will publish the tender soon. 

 Policy Toolbox Working Group

Input has been collected on the reporting process from members through the Year 1 Reporting Review Survey. As part of this review, stakeholder- specific meetings will be conducted to collect more feedback on the reporting process. Based on the Year 1 Reporting Review results, any changes will be assessed to the reporting framework and its details (i.e., Process, Extensions, Questions), and disclosure requirements will need to be agreed on for reporting Years 2 and 3 (Transporting Reporting Roadmap- TRR). Future actions will require the reporting guidance for Year 2 to be improved according to changes proposed to the reporting matrix.

An RFP for consultants has recently been published to look into proposing a quantitative orientation for the reporting matrix and do a crosswalk with other reporting frameworks (CDP Forest, GRI and ZSL-SPOTT). On news of the Assurance Model front, what follows would be to finalise Compliance Panel Terms of Reference and operational guidance based on the Assurance Model.  

Shared Responsibility Working Group

During the physical meeting in January- February, the Governance and Guiding Principles were presented, Manufacturers will provide a revised document of said principles by April. 

Next phases for the Working Group are pending the outcomes of discussions on shared investment principles, which are currently happening on the Manufacturers category level. The Working Group will revamp data sharing and value transfer discussions once the proposal from the Manufacturers is available.

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.