Q&A- GPSNR

Q&A- GPSNR

Sustainability is a vague idea. How do you define sustainability in the natural rubber sector?

I think sustainability is vague if you have not looked at it with a good set of eyes. If you see it as a concept, then it certainly is not vague. Many standards have been introduced in the last 30 years and organisations and stakeholders have worked around this concept. The sustainability concept is evolving and is very well defined in the areas we operate in nowadays.

GPSNR defines sustainability through a multi-stakeholder process where we bring in members of GPSNR together. Our organisation represents all parts of the supply chain, from smallholders to processors and traders to manufacturers and civil society. Today, we represent about 60 percent of the global natural rubber volume.

Our supply chain sustainability commitments include the environmental, social and economic aspects of sustainability. The definition of sustainability for our members is now very well defined through a document, which is approved and called the policy framework document. This is a set of eight overarching themes that include commitments to legal compliance, community livelihoods, healthy and functioning ecosystems (including no deforestation) and respecting all human rights. Our GPSNR members need to have policies aligned for the production and procurement of sustainable natural rubber.

The great news is that after the document was approved last year, the GPSNR members are now aligning and publishing policies to be in line with this framework. Of course, these are commitments that do not explicitly mean implementation. Now the next step for us would be reporting requirements for our members. The members will have to publish reports every year, and we are defining the requirements for these reports now. For them,           it will be to demonstrate how they are reaching this commitment. We are also working on implementation guidance that will help companies implement an assurance model. It aims to understand the different risks and identify the modes of assurance based on the level of risk. It ensures that the commitments are met and that any claim the company makes on sustainability is verified.

Would there be any mechanism to know how companies are implementing the policies?

For GPSNR, it is not about reinventing the wheel. We don't want to create another certification standard. We have certification systems out there. I think, especially in the rubber sector, we need something that goes a bit broader than the current specification for certification because we have 85 percent production coming from independent smallholders, owning 1-2 hectares of land each, which makes it quite challenging to scale up certification promptly. So we are building up an assurance model, which is going to be a risk basis. The basic idea behind this is that instead of having a standard where you have to tick all the boxes of the standard, we will look at your situation. We are going to have a map of risk globally. So, based on the level of risk, we ask our members to have different levels of assurance.

For example, if we are sourcing from a place where everything was developed years ago, your risk of deforestation might be low. We might not require you to do a full deforestation assessment. Or maybe your risk in the supply chain is very high in terms of labour with migrants; we will ask you to have a more in-depth and third party assessment for that.

And this way, we hope to be able to bring down the cost of assurance and make the process a bit linear so that we can focus on what matters.

GPSNR was established in 2019. Could you highlight the achievements of GPSNR so far?

We are quite a young organisation considering it is a multi-stakeholder organisation. We started with just 11 members.  , we soon had 16-17 members, including some processors and traders in automotive, but now we are reaching 130 members.

As mentioned earlier, today, our members represent well above 50 percent of the global rubber market volume. Even if you compare it to other similar organisations with long-standing in other commodities, we are far above what others have seen in terms of representation. One of the most significant achievements that I would mention is the policy framework and its commitments and the ability to align the members with it to make a difference in the natural rubber supply chain.

I feel very confident that through this change, we will be able to reach the smallholders and improve their situation, which is really at the heart of GPSNR.

How do you make sure that there will be traceability and transparency in case of violation of rights?

That's a fair point. One of the key things that we managed to ensure is that smallholders are included in decision making in GPSNR processes. So now we have 28 smallholders that represent 8  different countries at the moment. They're a part of GPSNR as members, but they don't pay any fees.

They have been selected the representatives  through workshops conducted by us. Several smallholders participated in the workshops, and I do think that we're trying our utmost to ensure that their participation is meaningful. They understand how to engage in the platform and how to make their voice heard within the platform.

We ensure that everything GPSNR is doing is co-designed with smallholders. I don't mean to say that we represent all the seven million smallholders out there, but we're making strides as much as possible.

In terms of the grievances, we have set up a grievance mechanism that is open and transparent. Any stakeholder now can file complaints through GPSNR, and an independent panel of experts would review this. We hope to ensure that there is at least a communication channel and ways to address discrepancies through that system.

I think traceability can be defined in very different ways. So, traceability, in my mind, is knowing from where a specific batch of rubber is coming and keeping it separate from others in the supply chain.There is some merit to that and some approaches to do a certification. We need to look at transparency to ensure that companies know where we are sourcing from. They have to take responsibility for their suppliers' operations as if it was their operations.

What are the steps undertaken by GPSNR to curb illegal activities of companies like land grabbing etc.?

I think the first and most crucial step is to identify what can and cannot be done, because, unfortunately, in developing countries, maybe at times, the legal requirements do not match with the social licence to operate requirements expected in the sustainable world. That's one aspect, and there's also the enforcement, and due diligence might not be as good as expected. So, I don't think that the policy framework of GPSNR does a very good job in identifying what those do's and don'ts are. As for GPSNR members, I do believe strongly that the policies that are now in place will set a good foundation to ensure that the buyers will trigger these requirements down the supply chain.

We have seen that due diligence can only stop deforestation and land grabbing and other such activities in the entire supply chain to some extent. What we need is incentives, and that's why one of the critical challenges that we're finding in GPSNR is to identify how we can bring up financial and non-financial  incentives to companies and smallholders to operate sustainably.

For example, we have a working group on shared responsibility looking at how the companies can act together to solve issues that cannot be solved by a single company on its own. I deeply believe that most of these issues are linked to livelihood. May be we need to ensure that they get the right amount of compensation for their rubber production so that they don't have to open up another hectare to meet their livelihoods requirements.

Would you be working with the government in different countries? How difficult is it to work with the government?

GPSNR does not have direct government involvement, but we do collaborate with them. We have an MoU with IRSG, the international rubber research organisation. So by working with them, we have set up a series of dialogues with governments where we brought up, in the past year, the work of GPSNR, seeking opportunities to collaborate.

We are in touch with the local government agencies to ensure that we have public and private partnerships. Governments are key stakeholders, and especially when we want to reach smallholders at a large scale, we cannot forget to ensure that the governments are involved in the work we do.

Nineteen leading companies have joined your organisation. How difficult do you find it to make standard solutions?

Well, that's the beauty of the multi-state process and co-design process. So, it took a while, but the policy framework was designed with the input of all members. Everyone had the chance to chip in and find a synergistic approach together with the civil society organisations.

I think it's also doable as the world is becoming more global. There are differences in how the companies operate, but the global expectations are quite clear to everyone and every company as all aim to become global leaders. And that has helped in aligning the expectations.

You have around 130 members at present. How do you want to expand?

Until now, the membership that we've seen coming in is mostly from within the tyre sector. We are having discussions and interest from potential members outside the tyre sector but still in the rubber sector. Our setup already allows for the inclusion of known tyre members, but we're not just a tyre-focused association; we are a natural rubber-focused association. So the door is open for these entities, which is the focus of our expansion.

What are the challenges?

Covid has not been easy, but in a multi-stakeholder organisation, we're trying to build trust among our members for them to work together. We are human, so we're social animals, and trust is created by having interactions. So building trust has been really challenging.

But I do hope that as we come out of this crisis, this becomes easier for us as we want to reinstate physical gatherings and get our members together, which will help us move faster than we are today.

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    Vredestein Becomes Official Sleeve Sponsor For AS Monaco Football Club

    Vredestein Becomes Official Sleeve Sponsor For AS Monaco Football Club

    Apollo Tyres Ltd has secured a one-season shirt-sleeve sponsorship agreement with AS Monaco, one of French football's most successful clubs, to increase awareness for its premium Vredestein brand.

    This partnership will leverage Ligue 1's ranking as the fifth most watched football league in the world to raise awareness of Vredestein's award-winning products among a large audience in France and abroad. On November 22, AS Monaco's home league game against Brest will have the new sleeve branding for the first time. The Vredestein brand will be heavily promoted at Stade Louis-II for the 2024–2025 season, including on player sleeves and LED screens around the field. Exclusive social media initiatives will further help make the brand prominent, reaching a large and interested audience.

    Yves Pouliquen, Vice President – Commercial, Europe, Apollo Tyres, said, “This partnership is an exciting opportunity to strengthen Vredestein’s presence in one of our key markets. AS Monaco’s rich history and commitment to excellence mirror our focus on performance and innovation. We look forward to building a successful relationship with the club and celebrating its achievements this season.”

    Thibaut Chatelard, Marketing and Revenue Director, AS Monaco, said: “We are delighted to welcome Apollo Tyres and its Vredestein brand to the family of AS Monaco partners. This collaboration makes sense in view of the values we share, such as the constant pursuit of performance and excellence. There’s no doubt that this new support will be precious for the rest of our season, which promises to be thrilling.”

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      Nexen Tire Launches N´Blue S Summer Tyre

      Nexen Tire Launches N´Blue S Summer Tyre

      Nexen Tire, a leading global tyre manufacturer, has launched the Nexen N´Blue S tyre, adding to its range of summer tyres and providing drivers with advanced safety, energy efficiency and superior driving stability in wet and dry conditions.

      Developed using highly dispersed silica and equipped with an optimised structural design, the Nexen N´Blue S tyre provides reduced road noise and improved driving stability. The tyre features an innovative tread compound, formulated with hydrophilic fillers and microstructure-controlled polymers, and provides lower rolling resistance and exceptional dry and wet grip. The tyre also excelled in test results by demonstrating an 11 percent improvement in wet braking distance compared to its predecessor.

      Apart from providing excellent performance, the Nexen  N´Blue S also scores high on the sustainability index. The tyre provides an eco-friendly solution for environmentally conscious drivers by minimising fuel consumption and CO2 emissions. The Nexen N´Blue S summer tyre is available in 58 sizes, which makes it compatible with different types of vehicles.

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        Kumho Tire Vietnam To Expand Investment Project In Binh Duong Province

        Kumho Tire Vietnam To Expand Investment Project In Binh Duong Province

        Kumho Tire Vietnam Co., Ltd. is all set to expand its investment project in Binh Duong province of Vietnam, with the phase 3 of expansion commencing in early 2025. This was discussed at a recent meeting between Vo Van Minh, Deputy Secretary of the Provincial Party Committee and Chairman of the Provincial People's Committee (PPC), and Kim Hyun Ho, General Director of Kumho Tire Vietnam Co., Ltd.

        The meeting was held on 13 November at the Administrative Centre of Binh Duong province, as per an official statement. Apart from the company’s investment till date and the planned investment for phase 3, the two also discussed about the challenges and obstacles regarding procedures and processes to have more land funds to expand the manufacturing plant, along with taking measures to tackle the obstacles. Kim Hyun Ho also conveyed to the PPC Chairman that Kumho Tire Vietnam Co., Ltd. belongs to South Korea's Kumho Tire Group and is currently ranked 10th in the car tyre manufacturing industry.

        The company had invested in a tyre manufacturing plant in My Phuoc 3 Industrial Park in 2007 with a total initial investment of USD 308 million, which was supplemented by another USD 300 million in 2021. This extended the factory scale to six hectares and increased the production capacity to 12.5 million tyres annually. With the expansion in early 2025, the company will raise its total investment to USD 908 million and increase the factory's production capacity to 17 million tyres annually. The expanded capacity is expected to be operational by early 2026.

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          Yokohama-ATG Expands Galaxy MFS 101 SDS Range With White, Non-Marking Forklift Tyres

          Yokohama-ATG Expands Galaxy MFS 101 SDS Range With White, Non-Marking Forklift Tyres

          Yokohama-ATG, a leading manufacturer of all-terrain and off-the-road tyres, has expanded its Galaxy MFS 101 SDS range of forklift tyres with the launch of white, non-marking tyres.

          The Galaxy MFS 101 SDS range consists of puncture-proof SDS tyres with extended wear limits designed for high-intensity working shifts and long durability. These are premium, solid rubber tyres developed for tough demands, a long service life and high driving comfort. The addition of white, non-marking tyres is specifically aimed at clean working environments.

          Marked by a 3-stage construction process, the forklift tyres feature reduced heat build-up, effective shock absorption and minimised vibrations. The pattern design guarantees a smooth ride and good steerability thanks to its continuous centre lug and circumferential grooves. Furthermore, the flat walls and wide flat profile offer excellent stability when using a forklift for vertical stacking. The tyres are also equipped with anti-slip steel beads for improved rim fitment

          In a case study on a CAT 2.5-tonne forklift that was used for handling heavy pallets on asphalt, the Galaxy MFS 101 SDS outshone the competitors with impressive performance. The tyre delivered an approximate 900 working hours before replacement against competitors’ 500 working hours.

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