Seeing Through to a Solution: Traceability and Transparency Tools and Technology Studies (Members Version)

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Stretching the conversation about sustainable natural rubber

By 2050, the number of cars in the world is expected to more than double as urban population growth and rising incomes lead to increased demand for mobility. This has led to louder calls for a more environmentally friendly, energy efficient transport sector.

But what’s been missing from the conversation on sustainable transport so far is a key material that cars and other vehicles literally run on: rubber.

Around 70 per cent of the world’s supply of natural rubber is used to manufacture the wheels that move cars and enable airplanes to take off and land. In the last two decades, the consumption of natural rubber, which is primarily produced in the world’s tropical regions, has been increasing at a steady rate of 5 per cent every year.

Ideal climate and soil conditions in Thailand, Malaysia, Indonesia and Vietnam have made Southeast Asia the epicentre of global rubber production. Ninety per cent of the 13.960 million tonnes of rubber tapped last year came from this part of the world. The last 10 years have also witnessed the expansion of industrial rubber practices in Cambodia and Laos, after land in China and Vietnam began to deteriorate as a result of large-scale rubber production.

On a recent trip to Bintan, an Indonesian island located an hour from Singapore’s shores, Eco-Business got a first-hand look at the reality of smallholder rubber farming in Asia and the challenges of charting a sustainable path for rubber.

Although natural rubber has not received as much attention as fellow tropical commodity palm oil, it creates a similar set of social and environmental problems, from contributing to rapid deforestation to a history of land grabs and human rights violations in the Mekong.

However, unlike palm oil, which is mainly produced in large estates owned by big, family-owned corporations, close to 85 per cent of global rubber is produced by smallholders in Asia, making traceability a major issue in the industry’s quest for sustainability.

“Natural rubber is a crucial element of tyre production, driving the importance of its sustainability,” William Dusseau, manager of technical relations at Cooper tyre and rubber company, told Eco-Business. “A coordinated, universal and standard industry approach is the way to drive solutions in establishing and promoting sustainable natural rubber practices.”

He added that the launch of the Global Platform on Sustainable Natural Rubber (GPSNR), which took place last Thursday at the World Rubber Summit in Singapore, was a significant step in developing and maintaining sustainable rubber standards.

Members of the new platform include major brand tyre companies such as Cooper, Michelin, Pirelli, and Bridgestone and global car manufacturers including BMW Group, Ford Motor Company and General Motors.

GPSNR also includes international non-profit and civil society organisations such as Mighty Earth, Birdlife International and World Wide Fund for Nature (WWF).

According to Jean Bakouma, head of the Forest Program at WWF-France, since the rubber value chain is primarily driven by buyers, tyre manufacturers hold the greatest leverage for improving both the socioeconomic and environmental performance of natural rubber production.

“A robust sustainability policy that is thoroughly implemented by tyre manufacturers must consider sustainable natural rubber as a natural and responsible way to protect forests with high conservation value and high carbon stock, as well as foster other environmental services,” he said.

GPSNR Working Groups Update: September 2023

Strategy and Objectives Working Group:
The Traceability Pilot Field Trials consortiums Agridence and Koltiva have presented the final reports, which have been distributed within the Risk Subgroup. 

The Risk Subgroup has extended an invitation to ASI to share the formula behind the Risk Assessment Framework. This ensures that the framework is malleable to fit the dynamics of the Natural Rubber Industry. 

Furthermore, the Risk Subgroup has solidified plans for an initial pilot trial in collaboration with ASI, focusing on the establishment of Indonesia’s national risk assessment.

The resolution for the Assurance Model has been finalised and is currently in circulation among the wider membership for voting. The Member’s Journey Model and Assurance Model Timeline are slated for voting at GA 2023. The following items have been included in the Resolution as a strong basis for future consultations and discussions following GA 2023: Shared Investment Mechanism, Assurance Model Framework, and KPIs.

The Risk Subgroup is awaiting proposals from the Basel Institute in addressing corruption within Rubber Supply Chains from the ASI Risk Tool, Reporting Requirements and doing a qualitative corruption data analysis. 

Furthermore, the Risk Subgroup anticipates developments in the Assurance Model in December 2023, before proceeding with the expansion of the Risk Tool and the pre-setting of national risk levels. This ensures that the Risk Tool is not developed in silo and is in alignment with the other components of the Assurance Model.

Lastly, the Risk Subgroup intends to conduct an analysis of the Risk Tool with the Policy Framework to further understand how granular should Risk Assessment reach. For example, is Risk Assessment sufficient on a theme level or would it be necessary to deep dive into the Policy Component level.  

Smallholders Representation and Capacity Building (SCB) Working Group:
The Thailand Agroforestry subgroup conducted a KPI workshop before the Agroforestry training in October 2023. The subgroup is gearing up to conduct the inaugural set of Agroforestry training sessions, benefiting 100 farmers in Songkhla in October 2023.

Additionally, a productive knowledge exchange session took place involving the Agroforestry-Income Diversification task force, Pak Febrius, and the Thailand Agroforestry Subgroups.

Meanwhile, the Thailand GAP subgroup successfully finalised a contractual agreement with Koltiva and will hold its kick-off meeting, marking the first meeting since the start of the project.

The HCSA-HCVN Field Trials task force presented its final report to the SCB WG for endorsement.

The Digital Knowledge Sharing Platform (KSP) task force has conducted two pre-pilot development meetings and the Rubber Wiki app was officially launched on the Google Play Store. The task force is planning a training session tailored for task force and secretariat members, focusing on the effective management of Rubber Wiki. Following the app’s official launch, the KSP contractor will organise group socialising events in Indonesia and Thailand, aimed at introducing the app and gathering valuable user feedback.

Lastly, the SCB WG is gearing up for both national and international calls with smallholder members, an essential part of the preparations leading up to GA2023.

Policy Toolbox Working Group:
During the Year 1 Reporting Review process, input on the reporting process was gathered from members through a survey and stakeholder-specific meetings. This feedback will be used to inform revisions to the Reporting Matrix and disclosure requirements for reporting Years 2 and 3, aligning with the Transparent Reporting Roadmap (TRR).

The WG selected consultant Petra Westerlaan to propose a quantitative orientation for the reporting matrix and conducting a crosswalk with other established reporting frameworks such as CDP Forest, GRI, and ZSL-SPOTT. This quantification approach is expected to facilitate data aggregation and will make evaluating annual progress easier.

The Resolution for the Disclosure Requirements for Reporting Requirements has been finalised and is will be presented to the membership for voting. 

Lastly, quantification from Petra Westerlaan has been completed and the Working Group will embark on further consultations with the Working Group to prepare the updated Reporting Requirements to be approved at an extraordinary GA.

Shared Responsibility Working Group: The Shared Investment Mechanism (SIM) Resolution has been subsumed under the Assurance Model Resolution for approval in the 2023 GA, as a strong basis for further consultation and discussion after the GA. This is due to the integral role of the KPIs, which has not been finalised, in the implementation of the SIM. 

Value and benefits per category to be defined.

The Secretariat is looking into the development of guidance for the operation of the SIM.

Additionally, there is a co-chair seat open, and we are calling for interested volunteers.

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