Updates on the GPSNR Baseline Reporting Requirements Pilot Test

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In early June 2020, GPSNR member companies were invited to participate in pilot testing a set of draft Baseline Reporting Requirements developed by the Policy Toolbox and Implementation Guidance Working Group. Along with the newly approved Policy Components, the Baseline Reporting Requirements will constitute a key requirement for GPSNR membership. 

“By having robust reporting requirements and a system to transparently report on progress, GPSNR member companies will be able to demonstrate leadership, monitor and further the effective implementation of their sustainability commitments, and ultimately drive positive impacts in the natural rubber value chain,” explained Amy Smith, Policy Toolbox Working Group Co-Chair.

The Working Group proposed pilot testing the Baseline Reporting Requirements with a group of volunteer member companies to better understand any constraints companies may have in obtaining and sharing certain information. The goal of the pilot was to refine and finalize the Baseline Reporting Requirements based on company feedback.

“In addition to pilot testing with member volunteers, we will also be assessing and evaluating the potential of existing certification schemes and reporting systems to adopt as part of GPSNR reporting requirements,” added Policy Toolbox Working Group Co-Chair, Pierre Bois d’Enghien. “This evaluation, together with the feedback we received from the pilot, will help us build a reporting system that is credible and useful for all stakeholders.” 

We are pleased to announce that a total of 11 GPSNR members volunteered for the pilot test. These members, who include Continental AG, Ford Motor Company, Halcyon Agri Corporation Limited, Hevea-Tec Indústria e Comércio LTDA, Industrias de Exportacion Universal, S.A., ITOCHU Corporation, Michelin, SIPH, Socfin SA, Sumitomo Rubber Industries Ltd, and The Yokohama Rubber Co., Ltd., represent all the membership categories to which the Baseline Reporting Requirements would apply. 

In mid-July, the reporting platform was opened to the pilot participants, who were given three weeks to submit the required data. Concurrently, the Secretariat conducted one-on-one interviews with the participants to gather feedback about their experience using the baseline reporting platform as well as their suggestions on ways to improve the process. 

“Our volunteer member companies were instrumental in helping to refine the Baseline Reporting Requirements and ensuring that the platform’s reporting mechanisms are relevant and meaningful for all our members,” said GPSNR Director Stefano Savi. “This improvement will help us achieve our shared objectives of ensuring a sustainable and equitable natural rubber supply chain.”

Following the approval of the policy requirements at the General Assembly in September, the Policy Toolbox Working Group will review the compiled company feedback from the pilot and the member consultation process conducted earlier this year, and will refine and finalize the Baseline Reporting Requirements for Executive Committee approval by the end of 2020. Once the Executive Committee has approved these requirements, ordinary company members will submit their baseline reporting data for 2020 to GPSNR in Q1 of 2021.

The Baseline Reporting Requirements will enable GPSNR to understand what its member companies currently know about their natural rubber supply chains, and what they are doing to move towards sustainable practices. Having a rigorous and transparent reporting process in place will strengthen the credibility of GPSNR and contribute to the development of a robust Assurance system for the platform.

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GPSNR Working Groups Update: March 2021


Strategy and Objectives Working Group

The S&O Working Group has received inputs to the platform Theory of Change from the Smallholders Representation, Capacity Building, and Traceability and Transparency Working Groups. A task team from the S&O Working Group will now work to synthesize these different contributions into a single document. This compiled Theory of Change template will then be developed into the platform Theory of Change through a workshop which will involve representatives from all the working groups.

The Equity Sub-Working Group completed a summary of the Living Income studies that the platform commissioned in 2021 and presented the summary through a webinar. The Equity Sub-Working Group will now work to develop recommendations on how GPSNR can address priority risks and boost equity in the value chain.

‘Policy Toolbox’ Working Group

The Policy Toolbox Working Group has selected a combined consultant team of Proforest and Are We There Yet to lead the development of the Implementation Guidance for GPSNR. The development is expected to be a consultative process that concludes with a set of draft guidance that will be ready by July 2021.

To facilitate consultation on the Implementation Guidance, the Working Group will set up category-specific focus groups that members are encouraged to join. The focus groups will meet twice to review the draft guidance and provide feedback and inputs to improve the document. Each focus group is only expected to meet twice and members are only required to spend a few hours before each meeting reviewing the draft documents. The focus groups will be set up in the following manner:

Focus Group 1
Growers
Traders of Raw Materials

Focus Group 2
Processors
Traders of Processed material

Focus Group 3
Tire makers and other manufacturers

Focus Group 4
End users (incl. car makers and other downstream stakeholders).

In line with the assessment of policy documents against the policy framework, the Secretariat has collated company policy documents that were submitted and will proceed to review the policy documents submitted for review. The Secretariat has received responses from all 29 ordinary member companies that were required to submit documents and will spend the next month assessing the submissions.

‘Capacity Building’ Working Group

The Capacity Building Working Group has created three separate task forces that will work on working group tasks. The first task force will focus on developing mechanisms to measure impacts of capacity building activities, the second task force will develop a strategy to attract and recognize GPSNR members’ funding of capacity building activities, and the final task force will develop systems to ensure that the national sub-groups tasked with implementing capacity building activities in each country remain aligned with the broader working group. In addition to the Good Agricultural Practices Task Force, the Working Group now has four Task Forces that will work to deliver on their tasks in the coming months.

‘Traceability and Transparency’ Working Group

The Traceability and Transparency Working Group will continue to meet in its sub-groups to develop recommendations on minimum benchmarks for traceability tools and data sharing in the platform. With the submission of the Working Group’s input to the Theory of Change, the Working Group is pleased to announce that its first sub-group has completed the assigned tasking and will no longer meet.

Smallholder Representation Working Group

The Smallholder Representation Working Group has now onboarded smallholders from Indonesia and Vietnam into the Working Group. The Working Group has also divided into two groups within the working group. The first sub-working group will work to develop a strategy to onboard smallholders from countries that are not represented in GPSNR yet. The second group will work to deepen engagement with smallholders who are already members of the platform and also develop strategies to improve representation among minority groups in countries that are already represented in GPSNR

News

Secretariat Update – January 2020

We can draw parallels to the coffee industry, which similarly comprises small plantation owners and more profitable downstream actors. In his recent sustainability report on the coffee industry, economist Jeffrey Sachs’ proposal for a global fund to fill the financial gaps for sustainability investments in coffee producing regions garnered vivid discussion.  

Currently, low and unpredictable rubber prices are a constraint to smallholders who produce the bulk of global rubber output. Transparency is critical in the purchasing process, and this kind of disruption typically comes hand in hand with embracing new strategies. 

Under the purview of the Strategy & Objectives Working Group, capacity building and extension services have been identified as potential measures to mitigate the root causes of the social and environmental impact from the natural rubber supply market. Implementing these at scale for the whole industry will require considerable financial investment.   

With the above considerations in mind, GPSNR is exploring new approaches to funding that would not be borne by a single segment of the industry, but in a manner incorporating the spirit of our shared responsibility. 

Enterprise Singapore organized an industry meeting on 14 January 2020, and invited GPSNR and Singapore Exchange to better understand the available options of an e-trading platform that could contribute to our funds. The meeting also discussed what could be the options, through GPSNR, to increase the uptake of the e-trading platform.

Tapping the vast potential of digitalization could present an exciting avenue of possibilities for GPSNR to better advance our vision of a fair, equitable and environmentally sound rubber value chain.      

The meeting was initiated by representatives from Enterprise Singapore, and panel speakers comprised representatives from GPSNR, Singapore Exchange and HeveaConnect. Participants included GPSNR members as well as other Natural Rubber buyers, producers, processors and traders .

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