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Interview with PEFC

Ahead of this year's Sustainability in Tires 2024, we spoke with Benson Yu, Director at PEFC China Initiative, to get a sneak peek of what we can expect from his presentation on 'Role of forest certification for EUDR with PEFC ' Here's what he had to say…




Q1. Your topic will be “Role of Forest Certification for EUDR with PEFC”, can you give us a snapshot of what delegates will hear? And why it is important for others in the industry to hear this message?

As climate change impacts us globally, we must protect our forests from deforestation and support the people dependent on forestry related sectors such as natural rubber. With more than 25years of timber legality experience globally, more than 296million hectares certified in more than 80 countries; PEFC provides a standardized Due Diligence System (DDS) that aligns with EUDR requirements named EUDR DDS standard module.

In Southeast Asia, PEFC is deploying an on-going collaborative approach with rubber producing countries to integrate with local tech solutions and partner with ASEAN partners to support upstream smallholder communities attain certification for better market access.

Q2. In the sustainable context, how the new EU Deforestation-free Regulation will affect the tire industry and what PEFC can support?

EUDR has significant implications for the tire industry, as it targets products containing commodities linked to deforestation, including natural rubber which is considered as Non- Timber Forestry Products (NTFP).

This regulation will impact the industry in several ways:

Impact 1: Supply Chain Transparency and Due Diligence:
  • Increased traceability requirements: Manufacturers will need to track rubber sourcing throughout the supply chain and demonstrate that their rubber is not linked to deforestation.
  • Risk assessments: Companies will be required to assess the risk of deforestation in their supply chains and implement measures to mitigate those risks.
  • Documentation and audits: EUDR will require comprehensive documentation and potential audits to demonstrate compliance.
Impact 2. Sourcing Challenges:
  • Limited access to sustainable rubber: The tire industry may face challenges sourcing rubber from certified sustainable sources, especially if the demand for sustainable rubber outpaces the available supply.
  • Increased costs: Implementing due diligence measures and sourcing certified rubber can lead to increased production costs.
  • Potential supply disruptions: The requirement to demonstrate compliance with
EUDR could lead to disruptions in supply chains if some suppliers cannot meet the requirements.

How PEFC Can Respond and Provide Sustainable Solutions:
The Program for the Endorsement of Forest Certification (PEFC) provides a framework for sustainable forest management and offers a robust solution for the tire industry to meet EUDR requirements and contribute to sustainability development initiatives.
  1. Certification and Traceability:
  • Sustainable Forest Management: PEFC certification of rubber plantations ensures the sustainable management of forests and the protection of biodiversity, helping tire companies meet EUDR.
  • Chain of Custody: PEFC's Chain of Custody (CoC) system tracks certified rubber from the plantation to the final product, providing a clear and transparent chain of custody that meets EUDR's traceability demands.
2.Environmental Impact: 
  • Sustainable forest management: PEFC certification promotes responsible forest management practices, preventing deforestation and promoting the long-term health of forests.
  • Biodiversity conservation: PEFC standards ensure the protection of biodiversity and wildlife habitats in rubber plantations, contributing to global biodiversity conservation efforts.
3.Social Responsibility: 
  • Fair labor practices: PEFC certification encourages fair labor practices in rubberplantations, ensuring workers' rights and decent working conditions.
  • Community engagement: PEFC promotes community engagement and participation in forest management, fostering sustainable development in rural communities with Group Certification.
PEFC provides a robust framework for responsible sourcing of sustainable natural rubber by:
  • Reduced deforestation: Preventing deforestation and promoting sustainable land use practices through certified rubber plantations.
  • Climate change mitigation: By supporting sustainable forest management, PEFC  helps to maintain forest carbon sinks and contributes to climate change mitigation efforts.
  • Biodiversity conservation: PEFC-certified rubber plantations promote biodiversity conservation and help to maintain the ecological integrity of forest ecosystems.
  • Supporting the improved livelihoods of rubber smallholders.
PEFC certification offers a comprehensive solution for the tire industry to meet the challenges posed by EUDR while contributing to global sustainability goals. By adopting PEFC certification and implementing its Chain of Custody system, tire manufacturers can demonstrate compliance with EUDR requirements, source sustainable rubber, and contribute to positive ESG impacts.
 
Q3. What industry topics are getting the most attention in the tire industry currently? How are these factors influencing the future of the tire value chain?

Aside from geo-political tensions, the rise of AI and advance technologies, regulatory ESG reporting is one of the key industry topics which poses a lot of challenges for the market. These regulations such as EUDR, Corporate Sustainability Reporting Directive (CSRD) and others, adds more pressure and costs for reporting compliance both on a voluntary and mandatory basis.

Currently, the global market is saturated with overly centralized frameworks, schemes and systems that adopts exclusionary practices to manage risk. Instead of innovating and improving on existing systems which includes existing stakeholders to further build on their reporting infrastructure. Here are some key impact points related to the Tire industry:
  1. Supply Chain Sustainability: CSRD C EUDR requires companies to assess and report on the sustainability risks and impacts of their supply chains, including the sourcing of raw materials like natural rubber, which are crucial for the tire industry.
  2. Environmental Impact: Companies will need to report on their carbon footprint, resource use, and waste management practices, particularly those related to tire manufacturing and end-of-life tire management.
  3. Social Responsibility: Reporting on labor practices, human rights, and responsible sourcing will be critical for the tire industry, as they operate globally with complex supply chains.
While larger companies with more resources can cope with these mandates, SMEs and smallholders are at risk of becoming laggards and being at risk of non-compliant. The adverse impact could exclude smallholder rubber farmers from tire supply chains. These risk mitigation practices are indirectly influencing smallholder community forests to convert into other agriculture commodities further contributing to deforestation and land degradation.

PEFC however offers a more inclusive approach with ISO infrastructure that can reduce costs of certification verified by 3rd party auditors.

Q4. What are you most looking forward to at Sustainability in Tires 2024?

PEFC and our partners are interested in presenting our EUDR solutions with impact stories from Southeast Asia welcoming more partners and tire stakeholders to collaborate with us to deliver long lasting solutions that addresses sustainability in ESG principles. Find out more at Rubber.PEFC.org or email us at Rubber@pefc.org.