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

GPSNR Working Groups Update: September 2023

Strategy and Objectives Working Group:
The Traceability Pilot Field Trials consortiums Agridence and Koltiva have presented the final reports, which have been distributed within the Risk Subgroup. 

The Risk Subgroup has extended an invitation to ASI to share the formula behind the Risk Assessment Framework. This ensures that the framework is malleable to fit the dynamics of the Natural Rubber Industry. 

Furthermore, the Risk Subgroup has solidified plans for an initial pilot trial in collaboration with ASI, focusing on the establishment of Indonesia’s national risk assessment.

The resolution for the Assurance Model has been finalised and is currently in circulation among the wider membership for voting. The Member’s Journey Model and Assurance Model Timeline are slated for voting at GA 2023. The following items have been included in the Resolution as a strong basis for future consultations and discussions following GA 2023: Shared Investment Mechanism, Assurance Model Framework, and KPIs.

The Risk Subgroup is awaiting proposals from the Basel Institute in addressing corruption within Rubber Supply Chains from the ASI Risk Tool, Reporting Requirements and doing a qualitative corruption data analysis. 

Furthermore, the Risk Subgroup anticipates developments in the Assurance Model in December 2023, before proceeding with the expansion of the Risk Tool and the pre-setting of national risk levels. This ensures that the Risk Tool is not developed in silo and is in alignment with the other components of the Assurance Model.

Lastly, the Risk Subgroup intends to conduct an analysis of the Risk Tool with the Policy Framework to further understand how granular should Risk Assessment reach. For example, is Risk Assessment sufficient on a theme level or would it be necessary to deep dive into the Policy Component level.  

Smallholders Representation and Capacity Building (SCB) Working Group:
The Thailand Agroforestry subgroup conducted a KPI workshop before the Agroforestry training in October 2023. The subgroup is gearing up to conduct the inaugural set of Agroforestry training sessions, benefiting 100 farmers in Songkhla in October 2023.

Additionally, a productive knowledge exchange session took place involving the Agroforestry-Income Diversification task force, Pak Febrius, and the Thailand Agroforestry Subgroups.

Meanwhile, the Thailand GAP subgroup successfully finalised a contractual agreement with Koltiva and will hold its kick-off meeting, marking the first meeting since the start of the project.

The HCSA-HCVN Field Trials task force presented its final report to the SCB WG for endorsement.

The Digital Knowledge Sharing Platform (KSP) task force has conducted two pre-pilot development meetings and the Rubber Wiki app was officially launched on the Google Play Store. The task force is planning a training session tailored for task force and secretariat members, focusing on the effective management of Rubber Wiki. Following the app’s official launch, the KSP contractor will organise group socialising events in Indonesia and Thailand, aimed at introducing the app and gathering valuable user feedback.

Lastly, the SCB WG is gearing up for both national and international calls with smallholder members, an essential part of the preparations leading up to GA2023.

Policy Toolbox Working Group:
During the Year 1 Reporting Review process, input on the reporting process was gathered from members through a survey and stakeholder-specific meetings. This feedback will be used to inform revisions to the Reporting Matrix and disclosure requirements for reporting Years 2 and 3, aligning with the Transparent Reporting Roadmap (TRR).

The WG selected consultant Petra Westerlaan to propose a quantitative orientation for the reporting matrix and conducting a crosswalk with other established reporting frameworks such as CDP Forest, GRI, and ZSL-SPOTT. This quantification approach is expected to facilitate data aggregation and will make evaluating annual progress easier.

The Resolution for the Disclosure Requirements for Reporting Requirements has been finalised and is will be presented to the membership for voting. 

Lastly, quantification from Petra Westerlaan has been completed and the Working Group will embark on further consultations with the Working Group to prepare the updated Reporting Requirements to be approved at an extraordinary GA.

Shared Responsibility Working Group: The Shared Investment Mechanism (SIM) Resolution has been subsumed under the Assurance Model Resolution for approval in the 2023 GA, as a strong basis for further consultation and discussion after the GA. This is due to the integral role of the KPIs, which has not been finalised, in the implementation of the SIM. 

Value and benefits per category to be defined.

The Secretariat is looking into the development of guidance for the operation of the SIM.

Additionally, there is a co-chair seat open, and we are calling for interested volunteers.

Members

GPSNR Working Groups Update: March 2021 (Members Version)


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 webinar recording and slides can be found here. The reports are also available here on the member’s portal. 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

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