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

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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.

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GPSNR Working Groups Update: October 2024

Assurance Model Task Force: The Executive Committee (EC) has reviewed the Assurance Model documents and approved them to be submitted to the General Assembly for a vote. The EC has also identified several topics that will require further discussion and finalisation next year. These include minimum requirements, the mechanism for third-party oversight of assessor accreditation, the format and content of assessment result disclosures, the process for assigning third-party assessors, claims, refinements to the classification system for major non-conformities, and a risk-based approach to assessment scheduling. These topics will be presented for a vote at the 2025 General Assembly. For further context, here is the link to the compilation of feedback on the Assurance Model documents received since June, along with responses and changes made based on these comments: https://rubberplatform.sharepoint.com/:b:/s/GPSNRMembers/EWLmS86xDkxMtce9wKEuLjwByB6hU_QXrROu_XJ9DuK0kA?e=ZYYike

Additionally, the EC has agreed that the first three years of assessments (2027-2029) will be conducted annually, with mandatory public disclosure of a category-level summary of the assessments, while company-level disclosure will be optional for those being assessed.

 

Smallholders Representation and Capacity Building (SCB) Working Group: 18 members from Ghana were approved this month, with an onboarding call held on 10 October 2024. Additionally, the EC Election Campaign call for smallholders took place on 29 October 2024.

Koltiva submitted the final report for the Indonesia GAP Coaching Project (Phase 2) and delivered a final presentation on 17 October 2024. The third phase of the Indonesia GAP Coaching Project is now underway and is currently in the preparation stage. For the Thailand GAP Coaching Project, Koltiva presented the first full-year project results on 22 October 2024. Meanwhile, RAFs completed training for 1,000 farmers ahead of schedule in the Thailand Agroforestry Project. Furthermore, a curated content list and promotional poster for Rubber Wiki have been created to engage smallholders through the Knowledge Sharing Platform.

Looking ahead, a Pre-GA Webinar for smallholders is scheduled for 18 November 2024, and 10 new Cambodian smallholders have applied for membership and are awaiting approval.

For Capacity Building Projects, SCB WG members are requested to review and provide feedback on the final report for the Indonesia GAP Coaching Project (Phase 2) by 28 October 2024. Koltiva will also submit agricultural calendars and training materials for the third phase of this project for SCB WG review by the same date. For the Thailand GAP Coaching Project, Koltiva is revising the full-year review report based on feedback from SCB WG members. Additionally, the Project Management Subgroup will hold its kick-off meeting on 23 October 2024.

 

Shared Responsibility Working Group: The Shared Investment Panel (SIP) has officially been established following approval from the GPSNR Executive Committee.

The Secretariat is continuing to support the implementation of the Shared Investment Mechanism, with the Project Management Subgroup currently reviewing the proposals received. The SIP will select its co-chairs and plans to hold its kick-off meeting early next month.

Regarding the Value Transfer mechanism, the Executive Committee will form a task force with one representative from each ordinary member category. This task force will work on the next steps to finalise a revised proposal, with the aim to present it at the in-person meeting in February 2025.

GPSNR Working Groups Update: October 2023

Strategy and Objectives Working Group:

Drafts of the proposed KPIs and Due Diligence System for the platform have been finalised and are now pending further discussions following the expected approval of the Members Journey Model at the 2023 General Assembly. These discussions aim to achieve document finalisation and alignment.

As for the Risk Subgroup Traceability Pilot Field Trials, both consortiums, Agridence and Koltiva, have submitted their final reports and signed off on these projects. They will be presenting the results of the Traceability Pilot Field Trials in an upcoming webinar session open to the public.

Simultaneously, the Risk Subgroup have been gathering and analysing user feedback for the initial version of the Risk Tool.

In the event that the Assurance Model resolution (5b) receives approval, the Assurance Model Task Force is poised to collaborate with ASI in developing GPSNR’s comprehensive Assurance Model. This endeavour will encompass alignment with existing normative documents, member consultation, and pilot testing. Ongoing discussions are currently underway to establish an operational plan and timeline for this initiative.

Furthermore, the Risk Subgroup has embarked on preliminary discussions exploring a potential collaboration with the Basel Institution to investigate corruption risks within the supply chain.

Lastly, the Risk Subgroup is currently awaiting alignment on normative documents by ASI before proceeding with further development of the Risk Tool. This step ensures that the tool complies with the requirements of the Assurance Model.

Smallholders Representation and Capacity Building (SCB) Working Group:

The SCB WG has efficiently organised both national and international calls with smallholder members in preparation for GA2023. To enhance comprehension among smallholder members, the GA Booklet has undergone translation in accessible languages.

In addition, the Thailand Agroforestry subgroup has conducted the first two rounds of coaching sessions for 100 smallholders in Songkhla. Similarly, the Thailand Good Agroforestry Practices (GAP) subgroup has initiated its activities with a kick-off meeting.

On the technological front, the Digital Knowledge Sharing Platform (KSP) task force has convened multiple times to review the developed features, with plans to address bugs and enhance the platform’s functionality. The HCSA-HCVN Field Trial report has received official endorsement.

Looking ahead, the SCB WG will continue to oversee all projects within its purview. The Indonesia subgroup is scheduled to present quarterly reports for all three projects on October 27, 2023. Additionally, a webinar is slated for November 30, 2023, to present the findings of the HCSA-HCVN field trial.

Regarding the Thailand GAP project, GPSNR is in the process of finalising an official joint letter with RAOT. Members interested in joining the Thailand GAP project, specifically in Chiang Rai and Bueng Kan provinces, are encouraged to contact the secretariat for further details.

The KSP task force has plans, including pilot training for smallholders in Indonesia and Thailand, along with soliciting feedback on the Rubber Wiki app.

Lastly, the Income Diversification and Rubber Agroforestry task force is organising its first agroforestry workshop of 2023, set to take place in Cote d’Ivoire at the end of October 2023.

Policy Toolbox Working Group:

The Policy Toolbox Working Group (WG) collected input on the reporting process, utilising surveys and stakeholder-specific meetings as part of the Year 1 reporting review process. This feedback played a critical role in shaping the disclosure requirements for Year 2 reporting data and will also be a central consideration in the forthcoming discussions concerning revisions to the Reporting Requirements (RR) matrix.

The WG, under the guidance of selected consultant Petra Westerlaan, submitted a proposal aimed at making the RR matrix more quantitatively oriented. This proposal is partially based on a crosswalk with other reporting frameworks like CDP Forest, GRI, and ZSL-SPOTT. The shift toward quantification is intended to simplify data aggregation and streamline the assessment of annual progress.

Additionally, Agridence has proposed the development of a digital platform and dashboard for the RR, with a focus on enhancing the process of reporting data collection and aggregation. This proposal received approval from the Executive Committee, and Agridence is slated to commence work in late October 2023.

The disclosure requirements for Year 2 reporting have been approved by WG1 and the Executive Committee, and they will be included as a Resolution for vote at the 2023 General Assembly.

Looking ahead, WG1 is preparing to revise the RR matrix based on Petra’s proposal for a more quantitative framework and in alignment with the Assurance Model. Once approved by the WG, the revised matrix will undergo circulation to the broader membership for consultation with the aim is to secure approval for the revised reporting requirements at an extraordinary General Assembly in early 2024.

Following the approval of the revised reporting requirements, the Policy Toolbox WG will proceed with the development of disclosure requirements for Year 3 reporting.

Shared Responsibility Working Group:

The Governance Framework and In-Kind Contribution components have been integrated into the Assurance Model framework, slated for voting at the 2023 General Assembly. This integration serves as a robust foundation for further discussion, particularly due to its close alignment with the KPIs.

Furthermore, the Governance Framework and In-Kind Contribution Requirements for the Shared Investment Mechanism have reached finalisation and are set for a vote at an extraordinary General Assembly in 2024.

The WG is developing a protocol in collaboration with the SCB WG. This protocol will be used to filter and evaluate proposals based on the Equity definition and stakeholder criteria as defined by the Executive Committee (EC).

Additionally, the Secretariat is in the process of creating operational guidance for the implementation of the Shared Investment Mechanism. This guidance will subsequently be shared with the Working Group.

Lastly, there is currently an open co-chair seat, and we are inviting volunteers to step forward.

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