Sri Trang Agro-Industry joins GPSNR

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.

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.