Stretching the conversation about sustainable natural rubber

In the last 30 years, Asia has doubled the area of land dedicated to rubber plantations, where environmental abuses run rampant in its complex supply chain. Now, the biggest stakeholders in rubber are setting new standards with the launch of the Global Platform for Sustainable Natural Rubber.

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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.

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PRESS RELEASE: Natural Rubber players adopt policies committed to healthy ecosystems and human rights

Singapore, 24 September 2021: Apollo Tyres, Bridgestone, Continental Tires, Goodyear Tire and Rubber Company, Hankook Tire & Technology, Kumho Tires, Michelin, Nokian Tyres, Pirelli, Sumitomo Rubber Industries, the Toyo Tire Group and the Yokohama Rubber Co. Ltd. are the first companies to have adopted natural rubber policies that are fully aligned with the policy framework of the Global Platform for Sustainable Natural Rubber (GPSNR). 

As members of GPSNR, their policies include eight major components: commitment to legal compliance, healthy functioning ecosystems, respecting human rights, community livelihoods, increased production efficiency, supply chain assessment and traceability, monitoring & reporting and driving effective implementation of all these components. According to Sooil Lee, President and CEO of Hankook Tire & Technology, ‘’Together with our supply chain partners, these commitments will help improve the quality of life of the natural rubber cultivators, upgrade quality of natural rubber and minimize environmental impact.’’ 

For Michelin’s Natural Rubber Sustainability Manager Edouard De-Rostolan, ‘’the alignment of commitments among GPSNR members, particularly with regard to the risk-based approach and the continuous improvement model, is a key driver for the platform to fulfill its primary mission, which is to create impacts on the ground in order to enhance the sustainability of the industry as a whole.’’ Pirelli’s Natural Rubber Procurement and Sustainability Manager Ulrich Antoni shared the sentiment, ‘’It’s great to see that more and more GPSNR members have aligned their policies to the GPSNR Policy framework. With the coordinated and concerted effort of GPSNR and all members, the natural rubber industry is directing individual and joint actions towards our shared goals for a sustainable natural rubber future. Pirelli will continue to take a proactive role in the platform and cascade good practices throughout the supply chain, with the ultimate goal of having an impact at the farming level too.’’

The commitment from these tire makers and their active participation within GPSNR reflects on their intent towards implementation.  ‘’In cooperation with the GPSNR Secretariat and stakeholders, we will sincerely implement these policies through our business activities,’’ says Toyo Tires’ Mitch Tamaki. 

To make sure that companies have adequate support to implement these commitments, GPSNR is working on an implementation guidance document and baseline reporting requirements. These will help translate this commitment into implementation. 

‘’All GPSNR members are required to align with the policy framework, and it is heartening to see companies follow through with the process. We are expecting many others to follow suit in the next few weeks.’’ says GPSNR Platform Director Stefano Savi. ‘’The policies serve as a foundation for a structural transformation not just for one company or rubber plantation, but the industry as a whole.’’

The GPSNR policy framework and published policies of  Continental Tires, Hankook Tire & Technology, Michelin, Nokian Tyres, Pirelli, Sumitomo Rubber Industries, the Toyo Tire Group and Yokohama Rubber can be found here. The rest of the policies will be published shortly. 

-Ends-

About GPSNR:  

GPSNR is an international membership driven platform set up to define sustainability for the natural rubber value chain. It brings together various stakeholders to a common ground based on fairness, equity and environmental sustainability. GPSNR member companies account for almost 50 per cent of the global natural rubber volume.  

More on sustainablenaturalrubber.org 

For more information, please contact: 

Bani Bains 

Communications Manager 

Email: bani.bains@gpsnr.org 

Ph: +65 97268165

News

Secretariat Update – July 2019

This full-time educational program enrolls a talented pool of diverse students from across the globe and includes academic courses such as Geopolitics, Economics, Asian Cultures and International Business in Asia. For the course ‘Company Project’, which is aimed at giving the participants broad practical knowledge, students interact and work closely with corporate companies and organizations. For the 2019 course, students had the option of choosing from a list of 5 unique partner companies/organisations, which ranged from the likes of International Finance Corporation (IFC) and South East Asia based mobility service provider Grab, and which were involved in different types of sectors including NGOs, FinTech, Healthcare, Mobility. 30 Students who were interested in working with non-profit organizations in Asia were selected to work with GPSNR as their host organization.

As a partner organization for the program, GPSNR was given the responsibility of assigning a research project to the selected group of highly motivated students, who will work on the given topic for a duration of two and a half months. After discussions with the strategy and objective Working Group, ‘Equity in the Natural Rubber supply chain’ in Asia, with main focus on China, Thailand and Indonesia, was concluded to be the chosen main topic of research for the participants. The research will focus on better understanding the cost benefit analysis at different levels of the supply chain, including social and environmental externalities. Students will work on this research project, the findings of which will be submitted to the platform by 12 September 2019.  

Increasing engagement with research organizations and academic institutions such as ESSEC Business School in Singapore, to ensure a science based approach to sustainability in the rubber industry, will remain a key objective for the Platform.

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Step 1: Commitment and Reporting