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.

Pirelli has announced the development of specific P Zero tyres for the new hybrid Porsche 911 GTS. This marks the latest collaboration between the tyre manufacturer and the German automaker, extending the availability of P Zero tyres across the entire 911 range.

The tyre maker states that it has engineered a unique version of the P Zero R as the primary fitment for the sports car. This tyre aims to balance performance with daily usability. A new compound provides grip across varied surfaces and weather, with an emphasis on wet conditions. The tread pattern reduces noise and low rolling resistance supports efficiency.

A dedicated P Zero Winter 2 tyre was also created for Porsche 911 owners seeking winter performance. This tyre features a directional tread pattern to improve wet and snow grip, while enhancing braking and handling on dry surfaces.

The tyre development process utilised Pirelli’s Virtual Development Center (VDC) in Breuberg, Germany. This facility employs virtual design and testing, leading to increased precision, a 30 percent reduction in development time and a 30 percent decrease in physical prototypes. The VDC facilitated the optimisation of tyre characteristics for the Porsche 911.

This joint effort represents the latest in a long-standing partnership between Pirelli and Porsche. Pirelli has achieved 338 homologations for all Porsche models, including SUVs, sedans and sports cars with internal combustion, hybrid and electric powertrains. Previous collaborations include the P Zero Trofeo RS for the 911 GT3 RS and the Pirelli Scorpion All Terrain Plus for the 911 Dakar. The P Zero R will be the main tyre for the Porsche 911 GTS.

Continental and Danish transport company DFDS are strongly committed to the development of sustainable logistics. With Europe's biggest fleet of heavy-duty electric trucks, the company uses Conti Eco Gen 5 tyres with optimised rolling resistance and high mileage, as well as the ContiConnect digital tyre management system for continuous monitoring. Both the companies have been collaborating effectively since the beginning of 2023.

With its well-balanced mix of high mileage and improved rolling resistance, the Conti Eco Gen 5 tyre series, which is a specialist for long-distance and regional transportation, powers DFDS' fleet of electric trucks. A quarter of the DFDS fleet is expected to be electrified by 2030. The ContiConnect digital tyre management system guarantees that DFDS monitors all of the fleet's tyres. Additionally, the fleet's range is extended by the digital tyre management system.

One of Denmark's oldest organisations, Det Forenede Dampskibs-Selskab (The United Steamship Company, DFDS) is made up of the business segments DFDS Ferry for maritime transportation, DFDS Logistics for road and rail transportation and DFDS Container Transport. The firm has a large fleet consisting of 70 maritime boats, 3,200 vehicles, and 15,200 trailers. The company has its own shore power infrastructure and charging stations in addition to a sizeable fleet of electric trucks.

Niklas Andersson, Executive Vice President and Head of Logistics, DFDS, said, “We are currently replacing our diesel trucks with electric trucks. We want to drive the transition to more sustainable road transportation and show that zero-emission transport is already a viable solution today. The expansion of our e-truck fleet helps to support more companies in decarbonising their supply chains and underlines our commitment to lead this development.”

Hinnerk Kaiser, Head of Product Development EMEA, Continental, said, “Sustainability and cost efficiency are attracting increasing interest on the market. The optimised rolling resistance and high mileage of Conti Eco tyres ensure that the energy efficiency of the truck increases and CO2 emissions are reduced.”

Carl-Johan Ejserholm, Fleet Manager, DFDS, said, “Thanks to the tyre sensors and the software, we have tyre inflation pressure, temperature and mileage permanently under control, avoid punctures and can carry out tyre changes according to plan. Efficient maintenance helps us to reduce operating costs. This is a benefit for us and a benefit for our customers, a benefit for everyone. By optimally managing journeys, we can minimise downtime for charging on route. More and more of our customers want us to drive battery-electric vehicles for them to further improve their environmental footprint. Digital tyre monitoring contributes to the efficient and more sustainable operation of our vehicles, which has a positive impact on our emission values.”

The German rubber industry has urged for an immediate implementation of the economic turnaround.

Addressing around 250 representatives of member companies of the employers' association of the German rubber industry (ADK) and the wdk at the ‘Day of the Rubber Industry’ event in Berlin, Michael Klein, President, wdk, said, “The economic turnaround manoeuvre must begin immediately. It is incomprehensible that the small key industries, which are so important for the German location, are not mentioned at all in the coalition agreement. The medium-sized companies are unsettled and urgently need planning security. This means an ambitious reduction of documentation and reporting obligations and the fastest possible relief in energy costs.”

According to the association, the regulatory procedures are particularly difficult for small and family-run businesses to comprehend. The German rubber industry is strong and resilient in decision-making, and it brings together major tyre manufacturers and producers of other rubber goods to form a formidable industry. However, it can only fully utilise its potential if the framework conditions are improved, which is the responsibility of the incoming federal government, stressed the wdk President.

Apollo Tyres has strengthened its renewable energy portfolio by acquiring an additional 3.43 percent stake in Green Infra Wind Power Projects Limited (GIWPPL), a wind power producer operating in Tamil Nadu.

In regulatory filings with the Bombay Stock Exchange and National Stock Exchange, the tyre manufacturer disclosed that its shareholding in GIWPPL will increase to 21.27 percent following the purchase of 60,000 equity shares at INR 10 per share, totalling INR 600,000.

The acquisition represents Apollo's growing commitment to green energy as part of its sustainability initiatives. Before this transaction, Apollo held a 17.84 percent stake in GIWPPL, comprising 312,000 equity shares.

GIWPPL, incorporated in July 2011, operates a 24-megawatt wind power project in Tamil Nadu and is a Sembcorp Green Infra Private Limited subsidiary. The company reported a turnover of INR 235.25 million for the fiscal year ended March 31, 2024, up from INR 208.81 million in the previous year.

This investment aligns with Apollo Tyres’ broader strategy to increase its renewable energy sourcing while potentially reducing its carbon footprint and energy costs across its manufacturing operations. Apollo Tyres stated the objective of the acquisition is for “procurement of wind power.”