Seeing Through to a Solution: Traceability and Transparency Tools and Technology Studies

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Deforestation, land grabbing, and human and labour rights violations have been associated with the production of natural rubber. In order to transform the global natural rubber supply chain into a fair, equitable and environmentally sound one, it is crucial that we work to reduce such social and environmental risks. This is by no means an easy feat with about 6 million smallholder farmers producing around 85% of the world’s natural rubber; the complexities of the supply chain make it difficult for buyers to ensure that sustainable practices are employed for rubber cultivation and processing. Recognizing the importance of enhancing traceability and transparency in the natural rubber supply chain to support the identification and mitigation of social and environmental risks, GPSNR established the Traceability and Transparency Working Group.

Over the past few months, the Working Group has commissioned two studies around traceability and transparency tools and technology. The reports were submitted by the consultants at the end of October 2020. The findings from each report are summarized below.

Spatial Data & Mapping Tools for Detecting Deforestation and Threats to HCVS Areas in Rubber Production Landscapes

Report developed by Zoological Society of London (ZSL)

This report reviews a variety of spatial mapping tools and approaches which may be employed by GPSNR and its members to address deforestation and degradation risk in rubber supply chains.

The key recommendations from this study are that GPSNR members should pool resources to collectively commission landscape-level HCV and HCS screening for key rubber-producing countries and these should be updated periodically. Spatial data maps from this process should be made publicly available to encourage cross-sectoral collaboration on tackling deforestation.

HCV/S datasets may then be integrated into satellite monitoring platforms and combined with near-real time monitoring of deforestation and forest degradation. This will allow accurate spatial analysis of the impacts of rubber production in key forested landscapes. GPSNR members may select different satellite monitoring tools or service providers, based on their own needs and budget. For upstream actors closer to the source, satellite monitoring may allow for preventative measures to be taken at the early stages of deforestation.

The full Executive Summary can be viewed here.

Review of Transparency & Traceability Tools and Solutions

Report prepared by e-Audit Hong-Kong Ltd

This report presents options on supply chain transparency and/ or product traceability solutions that GPSNR may consider as well as recommendations to select the most suitable transparency/traceability solutions for the GPSNR initiative.

A range of solutions currently implemented in commodity industries similar to the natural rubber industry were reviewed and evaluated, resulting in the identification of several key elements that will need to be considered to select the most suitable and cost-efficient solution.

The report also considers three potential infrastructure options (centralized, hybrid and decentralized) that should be considered as they have profound implications on the range of supply chain transparency and product/batch traceability solution(s) that GPSNR may consider to adopt.

This report concludes that the technology currently available makes it possible for all GPSNR key requirements to be integrated into one single solution. However, such a centralized solution may be costly and cumbersome to implement. At this stage of development of the GPSNR initiative it is recommended that GPSNR starts implementing a more flexible hybrid solution, with a centralized infrastructure/ data hub focused on reporting and monitoring of clearly defined performance KPIs, that can be connected through APIs to existing field level risk assessment, risk mapping and traceability solutions currently implemented by GPSNR members.

The full Executive Summary can be viewed here.

More To Explore

Members

Introducing GPSNR Topic Talks! Webinar Series (Members Version)

GPSNR Topic Talks! is a new webinar series organised by the GPSNR Secretariat and presented by GPSNR members. The webinars will take place over three Tuesdays in October and November, and will cover three main themes around sustainability and the global natural rubber supply chain.

The first Topic Talk, a presentation by Philippe Thaler from CIRAD on the implications of EU legislation on imported deforestation, took place just yesterday night. The webinar was well attended by GPSNR members from various membership categories. In his presentation, Philippe covered the current status of EU commitments towards avoiding imported deforestation and how France has started implementing its policy. He also elaborated on the demand from French institutions to CIRAD to assess compliance with this policy in natural rubber. He concluded with some examples of how GPSNR can demonstrate the platform’s positive impacts in this context. The Q&A session afterward allowed for a deeper dive into the topic, as well as opening up some interesting questions on the use of alternative tools apart from compliance and assurance that can also help stakeholders progress towards their zero deforestation goals.

The next Topic Talks will focus on the themes of smallholder solutions as well as assurance and smallholders. More details on the upcoming webinars are provided in the subsequent section of this article.


Smallholder Solutions: From Income Diversification to Landscape Approaches

3 November 2020 | 7PM (GMT+8)   

Click here to register

This webinar consists of two presentations:

“A landscape-level approach to inclusion and capacity building for rubber smallholders”

Presented by: Kirana Megatara, Proforest & SNV

This presentation is based on experience from the Kelola-Sendang project in South Sumatra, where SNV, with Proforest support, worked with rubber smallholders in the context of a large jurisdictional initiative. New links were built between these groups and a crumb rubber factory buyer in the Kirana group, helping to streamline the supply chain and open channels of communication on sustainability issues.

“Exploring Smallholder Solutions in the Rubber Sector – The Processing and Sale of Rubberwood to Support Smallholder Financing in Indonesia”

Presented by: WWF with Financial Access

HeveaConnect, Target Corporation, and World Wildlife Fund are engaged in finding solutions to enhance the production and trade of sustainable natural rubber. The three organizations came together in 2019 around the shared interest in understanding how the processing and sale of rubberwood might incentivize the adoption of sustainable practices by natural rubber smallholders and enhance their livelihoods. We enlisted the services of Financial Access to analyze the potential of rubberwood to serve as a mechanism to support smallholder financing in Indonesia. Although the scope of the analysis was limited to two provinces in Sumatra, the findings of this study could be used there and elsewhere in Indonesia to inform the development of sustainable natural rubber initiatives that include the processing and trade of rubberwood as one of several strategies to support equity in natural rubber supply chains.

Assurance and Smallholders: Learning from Existing Schemes

24 November | 7PM (GMT+8)

Click here to register

This webinar consists of two presentations:

“FSC Smallholder Certification Solutions”

Presented by: FSC

The presentation will cover FSC’s solutions for smallholders to become certified. First, an overview of the evaluation of certification solutions for smallholders will be given. FSC’s existing solutions will be covered, with a focus on the benefits for FSC Group Certification. Next, solutions in the pipeline will be covered, addressing the impact of pilot projects and highlighting success stories.

“PEFC, a system of choice for rubber smallholders”

Presented by: PEFC

Through a comprehensive explanation of PEFC, PEFC will elaborate further on their unique bottom-up approach in standard-setting and certification. Why and how this approach makes PEFC a system of choice for rubber smallholders and all companies involved in the natural rubber supply chain. They will also showcase current collaborative projects with their national members and companies to support smallholder producers. PEFC will explain how it will benefit GPSNR members and the work that GPSNR is engaged in.

GPSNR Working Groups Update: October 2023

Strategy and Objectives Working Group:

Drafts of the proposed KPIs and Due Diligence System for the platform have been finalised and are now pending further discussions following the expected approval of the Members Journey Model at the 2023 General Assembly. These discussions aim to achieve document finalisation and alignment.

As for the Risk Subgroup Traceability Pilot Field Trials, both consortiums, Agridence and Koltiva, have submitted their final reports and signed off on these projects. They will be presenting the results of the Traceability Pilot Field Trials in an upcoming webinar session open to the public.

Simultaneously, the Risk Subgroup have been gathering and analysing user feedback for the initial version of the Risk Tool.

In the event that the Assurance Model resolution (5b) receives approval, the Assurance Model Task Force is poised to collaborate with ASI in developing GPSNR’s comprehensive Assurance Model. This endeavour will encompass alignment with existing normative documents, member consultation, and pilot testing. Ongoing discussions are currently underway to establish an operational plan and timeline for this initiative.

Furthermore, the Risk Subgroup has embarked on preliminary discussions exploring a potential collaboration with the Basel Institution to investigate corruption risks within the supply chain.

Lastly, the Risk Subgroup is currently awaiting alignment on normative documents by ASI before proceeding with further development of the Risk Tool. This step ensures that the tool complies with the requirements of the Assurance Model.

Smallholders Representation and Capacity Building (SCB) Working Group:

The SCB WG has efficiently organised both national and international calls with smallholder members in preparation for GA2023. To enhance comprehension among smallholder members, the GA Booklet has undergone translation in accessible languages.

In addition, the Thailand Agroforestry subgroup has conducted the first two rounds of coaching sessions for 100 smallholders in Songkhla. Similarly, the Thailand Good Agroforestry Practices (GAP) subgroup has initiated its activities with a kick-off meeting.

On the technological front, the Digital Knowledge Sharing Platform (KSP) task force has convened multiple times to review the developed features, with plans to address bugs and enhance the platform’s functionality. The HCSA-HCVN Field Trial report has received official endorsement.

Looking ahead, the SCB WG will continue to oversee all projects within its purview. The Indonesia subgroup is scheduled to present quarterly reports for all three projects on October 27, 2023. Additionally, a webinar is slated for November 30, 2023, to present the findings of the HCSA-HCVN field trial.

Regarding the Thailand GAP project, GPSNR is in the process of finalising an official joint letter with RAOT. Members interested in joining the Thailand GAP project, specifically in Chiang Rai and Bueng Kan provinces, are encouraged to contact the secretariat for further details.

The KSP task force has plans, including pilot training for smallholders in Indonesia and Thailand, along with soliciting feedback on the Rubber Wiki app.

Lastly, the Income Diversification and Rubber Agroforestry task force is organising its first agroforestry workshop of 2023, set to take place in Cote d’Ivoire at the end of October 2023.

Policy Toolbox Working Group:

The Policy Toolbox Working Group (WG) collected input on the reporting process, utilising surveys and stakeholder-specific meetings as part of the Year 1 reporting review process. This feedback played a critical role in shaping the disclosure requirements for Year 2 reporting data and will also be a central consideration in the forthcoming discussions concerning revisions to the Reporting Requirements (RR) matrix.

The WG, under the guidance of selected consultant Petra Westerlaan, submitted a proposal aimed at making the RR matrix more quantitatively oriented. This proposal is partially based on a crosswalk with other reporting frameworks like CDP Forest, GRI, and ZSL-SPOTT. The shift toward quantification is intended to simplify data aggregation and streamline the assessment of annual progress.

Additionally, Agridence has proposed the development of a digital platform and dashboard for the RR, with a focus on enhancing the process of reporting data collection and aggregation. This proposal received approval from the Executive Committee, and Agridence is slated to commence work in late October 2023.

The disclosure requirements for Year 2 reporting have been approved by WG1 and the Executive Committee, and they will be included as a Resolution for vote at the 2023 General Assembly.

Looking ahead, WG1 is preparing to revise the RR matrix based on Petra’s proposal for a more quantitative framework and in alignment with the Assurance Model. Once approved by the WG, the revised matrix will undergo circulation to the broader membership for consultation with the aim is to secure approval for the revised reporting requirements at an extraordinary General Assembly in early 2024.

Following the approval of the revised reporting requirements, the Policy Toolbox WG will proceed with the development of disclosure requirements for Year 3 reporting.

Shared Responsibility Working Group:

The Governance Framework and In-Kind Contribution components have been integrated into the Assurance Model framework, slated for voting at the 2023 General Assembly. This integration serves as a robust foundation for further discussion, particularly due to its close alignment with the KPIs.

Furthermore, the Governance Framework and In-Kind Contribution Requirements for the Shared Investment Mechanism have reached finalisation and are set for a vote at an extraordinary General Assembly in 2024.

The WG is developing a protocol in collaboration with the SCB WG. This protocol will be used to filter and evaluate proposals based on the Equity definition and stakeholder criteria as defined by the Executive Committee (EC).

Additionally, the Secretariat is in the process of creating operational guidance for the implementation of the Shared Investment Mechanism. This guidance will subsequently be shared with the Working Group.

Lastly, there is currently an open co-chair seat, and we are inviting volunteers to step forward.

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