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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Stretching the conversation about sustainable natural rubber

By 2050, the number of cars in the world is expected to more than double as urban population growth and rising incomes lead to increased demand for mobility. This has led to louder calls for a more environmentally friendly, energy efficient transport sector.

But what’s been missing from the conversation on sustainable transport so far is a key material that cars and other vehicles literally run on: rubber.

Around 70 per cent of the world’s supply of natural rubber is used to manufacture the wheels that move cars and enable airplanes to take off and land. In the last two decades, the consumption of natural rubber, which is primarily produced in the world’s tropical regions, has been increasing at a steady rate of 5 per cent every year.

Ideal climate and soil conditions in Thailand, Malaysia, Indonesia and Vietnam have made Southeast Asia the epicentre of global rubber production. Ninety per cent of the 13.960 million tonnes of rubber tapped last year came from this part of the world. The last 10 years have also witnessed the expansion of industrial rubber practices in Cambodia and Laos, after land in China and Vietnam began to deteriorate as a result of large-scale rubber production.

On a recent trip to Bintan, an Indonesian island located an hour from Singapore’s shores, Eco-Business got a first-hand look at the reality of smallholder rubber farming in Asia and the challenges of charting a sustainable path for rubber.

Although natural rubber has not received as much attention as fellow tropical commodity palm oil, it creates a similar set of social and environmental problems, from contributing to rapid deforestation to a history of land grabs and human rights violations in the Mekong.

However, unlike palm oil, which is mainly produced in large estates owned by big, family-owned corporations, close to 85 per cent of global rubber is produced by smallholders in Asia, making traceability a major issue in the industry’s quest for sustainability.

“Natural rubber is a crucial element of tyre production, driving the importance of its sustainability,” William Dusseau, manager of technical relations at Cooper tyre and rubber company, told Eco-Business. “A coordinated, universal and standard industry approach is the way to drive solutions in establishing and promoting sustainable natural rubber practices.”

He added that the launch of the Global Platform on Sustainable Natural Rubber (GPSNR), which took place last Thursday at the World Rubber Summit in Singapore, was a significant step in developing and maintaining sustainable rubber standards.

Members of the new platform include major brand tyre companies such as Cooper, Michelin, Pirelli, and Bridgestone and global car manufacturers including BMW Group, Ford Motor Company and General Motors.

GPSNR also includes international non-profit and civil society organisations such as Mighty Earth, Birdlife International and World Wide Fund for Nature (WWF).

According to Jean Bakouma, head of the Forest Program at WWF-France, since the rubber value chain is primarily driven by buyers, tyre manufacturers hold the greatest leverage for improving both the socioeconomic and environmental performance of natural rubber production.

“A robust sustainability policy that is thoroughly implemented by tyre manufacturers must consider sustainable natural rubber as a natural and responsible way to protect forests with high conservation value and high carbon stock, as well as foster other environmental services,” he said.

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Different Plans for Different Countries: Getting Capacity Building Right

What are the challenges that prevent the production of sustainable natural rubber in rubber-producing countries, and why do they exist?

What initiatives can be taken, and by whom, to effectively overcome these challenges?

How can GPSNR best support the natural rubber sector in becoming more sustainable?

In setting out to find the answers to these questions, the Capacity Building Working Group has established four regional sub-Working Groups to focus on developing country-specific capacity building goals and strategies for the following countries: Indonesia, Thailand, Côte d’Ivoire and Myanmar. 

Since the first week of April, the regional sub-Groups have been holding weekly calls to get their respective projects started. Their first order of business? Identify the main challenges preventing the adoption of sustainable natural rubber practices within their countries of focus. Already, some commonalities have been revealed: the lack of implementation of best agricultural practices and poor diversification of farmers’ income. While challenges may be similar across the countries, proposed initiatives may differ due to a variety of factors such as technology and infrastructure, culture, degree of (or lack of) government support. The role that GPSNR can play in supporting these strategies would also depend on the particular conditions within each country.  

The sub-Groups are currently working on prioritizing the identified challenges to capacity building, and will be linking expected outcomes to the components of the GPSNR Desired State.

Roland Baroan is the first GPSNR smallholder member to take part in a Working Group discussion. A rubber farmer with 37 hectares of land and current President of the Association of Natural Rubber Producers of Côte d’Ivoire (APROCANCI), Roland lends his local expertise and knowledge to the Côte d’Ivoire regional sub-Group. Smallholders from the other countries of focus will also be involved via a consultation process.

While we hope to see more smallholders participating in and contributing to the work of GPSNR, we must also ensure that the right support systems are in place for them to effectively connect and communicate with all members. To this end, the Smallholders Representation Working Group is finetuning a proposed programme to onboard our smallholder members. The Working Group is also discussing a suitable funding mechanism for future smallholder participation in GPSNR.

By laying the groundwork for smallholder inclusivity, we can support the natural rubber value chain in its efforts to become more sustainable, and thus more resilient to global catastrophes.

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