Responsible management of the natural rubber supply chain
As one of the world’s largest buyers of natural rubber, the Michelin Group is a key market player. We therefore have a special responsibility to support sustainable rubber production, which is at the core of our sustainable development strategy.
In 2015, Michelin and WWF decided to work together to push the rubber market to adopt more sustainable practices. This partnership has been reconducted in 2019 for 4 years. To learn more (report about the inital partnership, and objectives of the renewal), click here
1. Publication of our sustainable natural rubber policy in 2016, which identified the Group’s public commitments in 5 areas:
- Respecting people
- Protecting the environment
- Improving agricultural practices
- Careful use of natural resources
- Good governance
Our sustainable natural rubber policy is available here (by selecting “natural rubber” in categories)
2. Evaluation of CSR practices in our rubber supply chain in several different areas:
- Our direct suppliers:
Documentary audits performed by EcoVadis and on-site audits that integrate CSR issues such as environment, health and safety of workers. Each factory is audited every year or every 2 years, thus more than 140 factories per year are audited.
- The factories of our direct suppliers and their upstream supply chain:
Our upstream supply chain, via a mobile application called Rubberway®. This app will allow us to map out the CSR practices of various stakeholders in our supply chain (from rubber processing plants to intermediaries to plantations larger than 50 ha to small farmers). The mapping that is produced will highlight areas with social and environmental risks. The results will be shared with our suppliers and could serve as the basis of improvement plans. The Group plans to assess 80% of our volume of natural rubber by the end of 2021.
NATURAL RUBBER SUPPLY CHAIN CSR PRACTICES ASSESSMENT
3. Action in the field with pilot plantations:
In 2015, Michelin and the Indonesian company Barito Pacific created a joint venture to produce eco-friendly natural rubber at two sites in Indonesia: one in Sumatra, the other in Borneo. The objective is to create model rubber plantations, in both social and environmental terms.
Working with local communities, over an area of nearly 80,000 ha, we plan to replant rubber trees on about 34,000 ha and the rest of the surface, we plan to restore the forest and plant community crops.
The project also aims to protect primary forests and natural parks bordering the plantations, as well as elephants, tigers, orangutans, etc.
These plantations should eventually produce nearly 60,000 tons of natural rubber and create around 10,000 local jobs.
4. A global environmentally responsible platform for sustainable natural rubber:
On October 25, 2018, the launch of “The Global Platform for Sustainable Natural Rubber” or GPSNR was celebrated in Singapore. This independent platform aims to improve the environmental and socio-economic performance of the natural rubber industry. The TIP (Tire Industry Project), of which Michelin is one of the founding members, initiated this project. All the stakeholders in the natural rubber value chain were gathered for the occasion: suppliers, care manufacturers, NGOs, etc.
The main missions of the GPSNR are to:
- harmonize standards to improve respect for human rights,
- prevent land-grabbing,
- protect biodiversity and water resources,
- improve yields and
- increase supply chain transparency and traceability.
The first general meeting took place in March 2019, in Singapore.