Continental extends its commitment to sustainability in the natural rubber supply chain. The tire manufacturer and the German Federal Ministry for Economic Cooperation and Development (BMZ) have agreed on a significant expansion of their successful project to ensure full traceability of the natural rubber supply chain in the Indonesian province of West Kalimantan in Borneo. The project will expand from the original group of 450 small farmers to 4,000 by 2024. The project objective remains the same. Small farmers in the natural rubber sector are trained to grow high-quality raw materials in compliance with sustainability criteria. By improving the quality of the raw material, the income of the farmers will be increased.
“Continental’s goal is to achieve 100% sustainable supply chains by 2050,” says Claus Petschick, head of sustainability of the tires business area. “The valuable experience we are gaining in this project allows us to progressively increase the transparency of our natural rubber supply chains. Education and digitalization are important contributors to making our supply chains more sustainable. Together with our partners, we are demonstrating in Borneo that this can succeed in the natural rubber sector. I am pleased that we are now significantly expanding this successful project.”
Indonesia is one of the world’s largest producers of natural rubber. The Kapuas Hulu district, where Continental collaborates with the BMZ, has two national parks that UNESCO designated as biosphere reserves.
SUSTAINABLE PRACTICES
Continental and the BMZ already implemented a digital traceability system for natural rubber in the project region back in 2018. With its help, Continental and BMZ can evaluate the supply chain in detail—from cultivation to Continental’s tire plants. The system can hold documentation for cultivation areas, raw rubber delivery quantities, and sales prices achieved for each transaction. For further processing and traceability, the project partners with natural rubber suppliers, Southland Global and Halcyon Agri Corporation.
Sustainable and responsible business practices have already been part of Continental’s corporate strategy for many years. The practices are also an important part of the “Vision 2030” strategy program for the Tires business area. The tire manufacturer aims to differentiate itself specifically with sustainable technologies and innovative solutions. The focus here is on the strategic topics of climate action, low-emission mobility, the circular economy and sustainable supply chains, and therefore all phases along the value chain. The company’s “Natural Rubber Sourcing Policy” defines clear responsibilities and commitments for Continental as well as all of its suppliers and service providers along the entire natural rubber value chain. The aim is to minimize environmental, human-rights and social risks.
Both the BMZ and Continental are members of the Global Platform for Sustainable Natural Rubber (GPSNR), founded in March 2019. Together with other members, they are working on the global improvement of sustainability in the natural rubber sector. Both Continental and BMZ aim for greater sustainability in the natural rubber sector, elaborated in their Indonesian projects.
Find out more, visit www.continental-tires.com.
