GPSNR Policy Components: Demonstrating a Commitment to Sustainable Natural Rubber

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The Member Consultation period for the proposed GPSNR Policy Components and Baseline Reporting Requirements closed on 3 July 2020. All comments received as part of the consultation exercise were discussed by the Policy Toolbox Working Group over several rounds of calls. There has also been healthy dialogue between various membership categories and the Working Group on the alignment of the Policy Components. 

Meanwhile, pilot testing for the Baseline Reporting Requirements is in progress, with 10 GPSNR member volunteers participating in the exercise. The Secretariat will be interviewing each of the volunteers in the coming weeks to gather feedback on their experience in submitting the Baseline Reporting Requirements data. More updates will be shared in due course.

At this stage, finalized versions of the Policy Components and related documents have been submitted by the Policy Toolbox Working Group to the Executive Committee for review and further discussion at the Executive Committee level. The Policy Components will then be brought to the GPSNR General Assembly for voting.

The formulation of Policy Components is a critical piece in fulfilling GPSNR’s vision of a fair, equitable and environmentally sound natural rubber value chain. 

All GPSNR members, at the time of joining the Platform, committed to this very vision, as well as 12 principles of sustainable natural rubber as defined by GPSNR. The Policy Components were developed to provide more specificity to the 12 Sustainable Natural Rubber Principles. Within the proposed Policy Components are key commitment details to no deforestation/ conversion/ degradation, upholding human rights, supply chain transparency and monitoring and reporting. 

If approved, the Policy Components will act as a clear and guiding framework for GPSNR company members to establish or update supply chain commitments through their natural rubber purchasing policies. 

Adopting a policy allows a company to signal that the issues covered by the policy are important to the company, and that resources and capacities will be dedicated to addressing the issues in order to comply with the policy. Policies, while illuminating the goals that a company is working towards, also enables these commitments to be channelled upstream to suppliers and downstream to buyers, with the potential to transform the entire supply chain.

Following the Policy Toolbox Working Group’s observation that common questions and concerns were raised by GPSNR members during the Members Consultation period, the Working Group has developed a supplementary FAQ document to provide detailed responses to address these concerns, in a bid to provide greater clarity on the Policy Components. These will be circulated to the GPSNR membership in August, along with all other proposed resolutions.

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The Road Ahead for GPSNR’s Working Groups

Strategy and Objectives Working Group

Moving forward, a key focus of the Strategy and Objectives Working Group is to look at increasing Working Group alignment within the Platform. Considering the interconnected nature of the work and the plan for Working Group-level Theories of Change, there is merit in bringing the Co-Chairs of Working Groups together to explore how to create better alignment. To this end, the Working Group is considering activities for the end of the year to build unity and alignment across all Working Groups.

The Working Group is also developing a procedure to assess external programs that are brought forward for GPSNR’s support, either by member organizations or by Working Groups. This process will involve evaluating the measurable Key Performance Indicators (KPIs) for the project and to what degree the project links to GPSNR’s Theory of Change. 

Under the Equity sub-Group, the Living Income Gap studies for Indonesia and Thailand are now underway following the award of the proposals to the selected bidders.  

Smallholder Representation Working Group

Prior to the General Assembly (GA), the Smallholder Representation Working Group had organised three international calls to prepare smallholders for the GA. A fourth international call will be held sometime mid-October. 

In the lead-up to this final international call, a round of national calls are being held with the help of the various Country Champions. During these national calls, smallholder members will be able to gather their thoughts around the GA, approved resolutions and Executive Committee election results, as well as to think collectively about the issues they would like to cover as a category during the international call, and, moving forward, the details of the engagement mechanism they wish to implement within the category.

Post-GA, the Smallholder Representation Working Group will explore how best to integrate members of the newest category into the various Working Groups. The Working Group is also looking at its exit strategy, having achieved the goals set out for it in its Terms of Reference document.   

‘Policy Toolbox’ Working Group

Following the approval of the proposed policy framework, a multi-stakeholder Technical Working Group will be set up to draft the Implementation Guidance for member companies. 

Concurrently, the Working Group will also develop a policy equivalent and implementation guidance for smallholder producers, and civil society.   

The Shared Responsibility Working Group, whose creation was approved by the Executive Committee, will be established to identify how the responsibilities and costs of implementing sustainable natural rubber initiatives can be more equitably distributed across stakeholder categories. It will help to inform the development of the Implementation Guidance, while bearing in mind that whatever requirements are defined for smallholder members, those members should not carry the burden of a higher cost to implement sustainability activities and comply with the Policy or Implementation Guidance to be developed.

‘Capacity Building’ Working Group

At the end of July 2020, the Capacity Building Working Group had presented finalized capacity building strategies for four selected countries, to the Executive Committee.

For its next steps, the Working Group will be developing implementation guidelines and an evaluation framework. This will be crucial in ensuring that the various capacity building activities are put in place in a concise and effective manner leading to the outcomes framed in GPSNR’s Theory of Change. The Working Group will continue to discuss the feasibility and find consensus on an approach that relates to carbon compensation schemes around natural rubber. 

Finally, the Working Group will also refine its group structure to better address the changing roles and responsibilities it now faces.

‘Traceability and Transparency’ Working Group

The Working Group has awarded the GIS Database and Mapping Tools study to the Zoological Society of London (ZSL), and the Traceability and Transparency Tools Comparison study to e-Audit Hong-Kong Limited (e-Audit). 

The studies are ongoing, and the Working Group will then use those studies to develop next steps as well as recommendations to the Executive Committee.

The Working Group will also be continuing conversations on risk-based approach methods to evaluating field-level legal, social and environmental risks.

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Stakeholders launch Global Platform for Sustainable Natural Rubber

Stakeholders including tire manufacturers, other rubber users, suppliers and processors, vehicle makers and NGOs, contributed to the development of the Global Platform for Sustainable Natural Rubber (GPSNR). This included alignment on a wide-reaching set of priorities for the natural rubber supply chain. The GPSNR will work to harmonize standards to improve respect for human rights, prevent land-grabbing and deforestation, protect biodiversity and water resources, improve yields, and increase supply chain transparency and traceability.

Development of the platform was initiated by the CEOs of the World Business Council for Sustainable Development (WBCSD) Tire Industry Project (TIP) in November 2017 and has since been led by a Working Group of TIP member companies. TIP members continue to work to ensure the sustainable production and supply of natural rubber, and in joining the platform they commit to be able to demonstrate the integration of principles for sustainable natural rubber into their purchasing and/or operational activities. The GPSNR is open to applications for membership from other natural rubber stakeholders.

Speaking at the launch Peter Bakker, President and CEO of WBCSD said “The tire industry consumes around 70 percent of natural rubber and demand is growing. This throws into sharp relief the social, economic and environmental opportunities associated with this important commodity. The GPSNR will consider the people, communities and natural resources touched by natural rubber production and supply – they all stand to benefit from the creation and adoption of sustainable and responsible practices.”

The ceremonial launch included the signing of a GPSNR Member Statement by the 11 members of TIP, and Ford Motor Company, Halcyon Agri Corporation Limited, ITOCHU Corporation, Kirana Megatara, SIPEF, The Socfin Group, and Southland Global PTE Ltd.

Bakker praised the efforts of founding and prospective GPSNR members in bringing the platform to launch, adding “This spirit of collaboration will define the actions of the platform going forward – there is strength in diversity, and the various interests and expertise within the GPSNR can deliver a truly sustainable natural rubber supply chain.”

The WBCSD’s TIP spearheaded development of the GPSNR and will financially support the platform during start-up and its first two years of operation – a level of support necessary to ensure basic operations while a paying membership base is established. Despite industry backing the GPSNR will maintain its independence, underlined Anne-Cécile Remont, Director WBCSD TIP– “Once officially launched, the platform will be independently managed, with governance and decision making overseen by a representative group of stakeholders.”

Building upon past work, in developing the platform, a review of comparable supply chain sustainability initiatives, including natural rubber, revealed that meaningful change was best achieved through the mainstreaming of good practices and this was central to discussions around the GPSNR’s governance structure, explained Remont. “Successful mainstreaming requires actionable commitment from the entire supply chain. Best results are found where the various contributions of stakeholder groups are relative to their ownership of supply chain opportunities, their relevant expertise and their capacity to implement meaningful change,” she said.

To be headquartered in Singapore, a dedicated GPSNR secretariat will kick-off operations in March 2019 with an inaugural GPSNR General Assembly.

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