The Dunlop Group has, for the first time, systematically organised its initiatives for sustainable natural rubber procurement through its group-wide Sustainable Natural Rubber (SNR) subcommittee. The group aims to coordinate existing efforts and accelerate action to secure a stable and sustainable supply of natural rubber.
Since April 2026, the group has been implementing Phase 2 of its project to assist smallholder natural rubber farmers in Indonesia. The project began in 2022 under Sumitomo Rubber Singapore Pte Ltd, Dunlop’s natural rubber procurement subsidiary, in collaboration with PT Hok Tong, a natural rubber processing company owned by Halcyon Agri Corporation Ltd. Phase 1, which ran from 2022 to 2025, reached more than 1,000 smallholder farmers in Jambi, Sumatra, and improved productivity and profitability, with yields increasing by up to approximately 19%. Phase 2 will continue activities in Jambi and expand to Rantau Prapat in North Sumatra, where farmers face similar supply chain risks. The group aims to reach a cumulative total of approximately 1,740 farms, with targets increasing annually through April 2029. In Jambi, it will provide follow-up training, technical guidance and agricultural supplies to help farmers apply the techniques they have learned and further improve yields.
Natural rubber is a key raw material for the group, and smallholder farmers play a major role in its production. Challenges involving productivity, income, and environmental and social conditions therefore affect the group’s ability to procure the material sustainably and reliably. In line with the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD), Dunlophas assessed its business activities’ dependence and impact on natural capital, along with the resulting risks and opportunities, using the LEAP Approach, and disclosed the findings.
The SNR Subcommittee has organised the group’s natural rubber risk mitigation measures in line with the Action Framework (AR3T) developed by the Science Based Targets Network (SBTN). The framework categorises business actions into four areas: avoidance, reduction, restoration and regeneration, and transformation. This approach helps clarify the roles of existing initiatives, including risk assessment, farmer assistance and research and development, while identifying further measures needed to improve sustainable procurement. The farmer project falls under AR3T’s Reduction category.
Dwi Sutrisno, Sustainability Manager at PT Hok Tong Indonesia, said the project builds smallholder farmers’ knowledge, skills and capabilities while improving productivity and promoting more sustainable farming practices. He added that PT Hok Tong Indonesia was proud to participate in the project and see its positive effects on farmers and their communities.
Dunlop identifies biodiversity as a material issue and aims to become a group that understands its dependence on and impact on natural resources, including natural rubber, while coexisting with surrounding ecosystems. Under its SNR policy, the group will continue working through the SNR Subcommittee with suppliers, producers and other stakeholders to secure a sustainable and reliable supply, strengthen supply chain resilience, conserve the environment in production areas and improve producers’ living standards.