Natural rubber
Continental and GIZ are committed to sustainability in the supply chain
The technology company Continental and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) are working together in a development partnership to promote greater sustainability in the supply chain for natural rubber in Indonesia. The country is the world's second largest producer of natural rubber. The aim is to develop a catalog of criteria for sustainable production, to train farmers in sustainable cultivation methods in accordance with these criteria and to ensure the traceability of the rubber from the small farmers through to its use in production at Continental.
Better rubber quality, higher yields and optimization of the supply chain increase the income of rubber farmers. The partnership between Continental and GIZ is supported by the develoPPP.de program of the German Federal Ministry for Economic Cooperation and Development (BMZ).
Traceability serves sustainability
As rubber trees grow in rainforest areas, it must be ensured that cultivation does not lead to deforestation. In order to ensure and monitor sustainable rubber production, Continental and GIZ will introduce a traceability system and promote the traceable production of rubber in West Kalimantan over the next three years. A total of 400 farmers will be trained to grow high-quality rubber in compliance with clearly defined sustainability criteria. An electronic system is being developed to ensure complete traceability of the raw material along the entire supply chain.
"Our goal is to establish a traceable and sustainable supply chain and to set a good example through best practices in natural rubber production," says Nikolai Setzer, who is responsible for Corporate Purchasing and the Tire Division on the Executive Board of Continental AG. "The partnership with GIZ gives us access to the local stakeholders we rely on to achieve traceability and sustainability."
New guideline for a healthy supply chain
Continental is also attaching increasing importance to sustainability in purchasing beyond this development partnership. Despite already having clearly defined guidelines and enforcement mechanisms to prevent non-compliant behavior in the supply chain by suppliers, the Sustainability Management team in Continental's Central Purchasing is currently developing a sustainability guideline specifically for natural rubber, which will come into force at Continental in 2018. This policy reinforces the corporation's full commitment to a healthy and compliant supply chain and zero tolerance for deforestation, land grabbing and other practices that harm local communities and the overall ecosystem.
At the same time, Continental representatives in the World Business Council for Sustainable Development (WBCSD) are actively working on the introduction of an industry standard for sustainable natural rubber. The eleven leading tire manufacturers worldwide are participating in the WBCSD's "Tire Industry Project". am
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