GPSNR Working Groups Update: March 2022

The COVID-19 pandemic is impacting the entire natural rubber supply chain. It has triggered car and tire manufacturing companies to operate with a reduced workforce, or temporarily halt production plants altogether. Strict lockdown measures have caused a drastic fall in the sales of consumer tires across Europe. Global demand for natural rubber has dropped, the effects of which will be felt by the 6 million natural rubber smallholders in Asia, Africa and Latin America.

Many smallholders live in poverty, depending on daily wages to feed their families. Their situations will only be exacerbated by the COVID-19 crisis. Already, the Association of Producers and Processing Plants of the State of São Paulo (APABOR) has estimated that for Brazil alone, the subsistence of around 100,000 natural rubber farmers and their direct relatives is at risk.

While COVID-19 exposes the vulnerabilities of smallholders, it also reveals the potential they have to be agents of change and drivers of transformation. The pandemic has reminded us of the connections between human health, resilient landscapes, economic stability and livelihoods; the post COVID-19 world is more likely to devote greater attention to tackling environmental, social and economic impacts of its many supply chains. Smallholders, who produce 85% of the world’s natural rubber supply, are thus key to advancing GPSNR’s vision of a fair, equitable and environmentally sound rubber value chain.

One of GPSNR’s major outcomes for this year has been welcoming our new smallholder members. As of today, a total of 27 smallholder members (with additions from Myanmar) have joined GPSNR. The inclusion of smallholders into the fabric of the Platform provides them the opportunity to drive the agenda for sustainable natural rubber and, in the long-term, realize the social, economic and environmental benefits that sustainability brings. 

We encourage GPSNR members to communicate this outcome through the communication channels of their respective organizations. To this end, we launched a quarterly Members’ Communication Toolkit which outlines the suggested key message and provides ready-to-use content for communicating the message. GPSNR Members may access the Members’ Communication Toolkit for Q2 2020 in the GPSNR Forum.  

More is being done to fully include these smallholders in the Working Groups and Executive Committee. The Smallholders Representation Working Group continues with its efforts in designing a programme for onboarding smallholders prior to the General Assembly. In the meantime, some of our new smallholder members are already actively involved in Working Group discussions. Additionally, having recognized the urgency to address the impacts of COVID-19 on smallholders, the Equity sub-Working Group is developing a position paper on the issue.

Strategy and Objectives Working Group: Hubert has completed his updates to the Assurance Model documents, which are now being consulted with the membership through the Assurance Model Task Force. Members should provide written feedback through the feedback form, and those who wish to be more actively involved in finalising these documents are encouraged to write to the Secretariat to join the Task Force. Additionally, a webinar will be conducted to share these updates and initiate further feedback from the membership. To register for the webinar, click here.

Smallholders Representation and Capacity Building (SCB) Working Group: The following projects have been endorsed by SCB WG members: the Indonesia GAP Coaching (Phase 1) by Koltiva, and the Income Diversification and Rubber Agroforestry Project by Dr. Eric (CIRAD) and Dr. Maria. Continued oversight of ongoing projects, including the Indonesia GAP Coaching Project (Phase 2), is being maintained. Koltiva has submitted a mid-term report, with SCB WG members requested to review and provide feedback by 26 August 2024.

Goodyear has expressed interest in extending the Indonesia GAP Coaching Project into Phase 3, with Koltiva’s proposal currently under review by the funder and the Secretariat planning to circulate it to SCB WG members for review once finalised. The Knowledge Sharing Platform is on track, with Koltiva scheduled to deliver the outcomes by 20 August 2024 and a presentation to the SCB WG on 22 August 2024. The Thailand Agroforestry Project is proceeding smoothly, with the contract for an additional project to develop a local marketing system being finalised with RAFS. Additionally, the resolution on the Shared Investment Mechanism (SIM) was approved during the EGA in July 2024, and the Secretariat is facilitating the creation of a Project Management Sub-group within the SCB WG, which will be responsible for reviewing and monitoring projects under the SIM. The Terms of Reference (TORs) for this sub-group have been drafted and are pending approval from the GPSNR Executive Committee.

Shared Responsibility Working Group: The Shared Investment Mechanism has been approved by the General Assembly following the July Extraordinary General Assembly vote. The Secretariat will work on establishing the Shared Investment Mechanism and operationalising all aspects of the Shared Investment Framework. Additionally, the Secretariat will continue to develop the value transfer initiative through discussions with members.