SUSTAINABLE NATURAL RUBBER POLICY


•  Introduction
Shandong Haohua Tire Co., Ltd has been focusing on tire industry for more than 30 years. The company has advanced tire R&D, production and test in equipment, professional technology and management team. lt was widely recognized by the market in terms of products, markets and management, and won many certificates of honor such as one of the top 500 Chinese private enterprises in foreign trade, new high-tech enterprise, top three in Shandong export. With the continuous development of the enterprise, Haohua is bound to become an important member of the industry in the future market pattern.
Haohua Tire (hereinafter called the Company) has spent years trying to become a contributor to the world’s sustainable development and made many efforts to achieve this goal. As natural rubber severs as a primary material of tire products, the Company attaches great importance to the sustainable development of this natural resource. It is well aware of environmental and social issues arising in areas that produce and supply natural rubber, such as deforestation, ecosystem damage, and infringement on rights of local people.
For the purpose of addressing such issues and supporting the development of a sustainable society, the Company has drawn up the sustainable natural rubber policy. In line with this policy, it is committed to promoting collaboration with stakeholders and procuring natural rubber in a responsible manner.
Joining efforts with the Global Platform for Sustainable Natural Rubber (GPSNR) and stakeholders, the company pledge its resolve to build a sustainable supply chain for natural rubber.
It is our sincere hope that our clients would understand this policy and work to procure natural rubber in a responsible manner. We pursue sustainable development of natural rubber and we commit to the following:


•  Legal Compliance
Comply with international code of conduct, international treaties, and local and national laws, and rules on human rights, labour, land use and the environment through all business activities, and observe the spirit of compliance.
Observe local and national rules, and internal rules on prevention of corruption and pledge not to get involved directly or indirectly in any forms of corruption, bribery, and embezzlement.

 

•  Healthy, Functioning Ecosystems
Procure natural rubber produced in a way that does not contribute to deforestation or degrade High Conservation Values (HCVs), identify and manage areas subject to development and conservation based on the HCV evaluation and the High Carbon Stock Approach (HCSA).
Natural rubber from areas deforested or where HCVs have been degraded after the cutoff date of April 1, 2019 is considered to be non-conforming with our policy.
Cooperate with natural rubber suppliers to support the long term protection of natural forests and other ecosystems and their conservation values, and to support restoration activities of deforested and degraded rubber landscapes.
Not use open burning/fire in new or ongoing operations for land preparation, land management and waste management other than justified or documented cases due to reasons listed below.
1.   Fire break establishment
2.   Waste management for sanitary reasons in cases where public garbage collection is not available
3.   Phytosanitary and other emergencies
Protect wildlife and support activities aimed at protecting wildlife, including rare, threatened, endangered and critically endangered species, from poaching, over-hunting and habitat loss.
Protecting water quantity and quality, preventing water contamination from agricultural and industrial chemicals, and preventing erosion and sedimentation.
Protecting soil quality, preventing erosion, nutrient degradation, subsidence and contamination.
Prevent the development of peatland and refrain from procuring natural rubber from plantations located on peatland.


•  Human Rights
Respecting and protecting internationally recognized human rights (including upholding the UN Guiding Principles on Business and Human Rights (UNGP) by avoiding causing or contributing to adverse human rights impacts and preventing or mitigating any harm linked to company operations.  
Desk receiving complaints
email: info@haohuatire.com
Post: Shandong Haohua Tire Co., Ltd.
HOUZHEN INDUSTRY ZONE, SHOUGUANG, , Shandong, China
Establish a system enabling anonymous reporting of complaints related to supply chains and the system will be operated in accordance with the UNGP effectiveness criteria.
Recognize and protect the customary, traditional, and communal land tenure rights of indigenous peoples and local communities(IP/LC), carry out operations in accordance with the UN Declaration on the Rights of Indigenous Peoples (UNDRIP), and protect rights listed below.
1.  Ongoing land tenure and access rights
2.  Traditional rights of access for hunting and gathering of animals and plants for the purpose of subsistence and indigenous cultural and religious traditions, customs and ceremonies
Ensure that, prior to any activity that might affect rights of(IP/LC), territories and resources, their free, prior and informed consent (FPIC) is secured. (This includes when planning, establishing, restoring, or transforming corporate plantations or industrial sites, as well as associated infrastructure.)
The FPIC process is done in an appropriate manner while following credible and generally accepted methodologies, and associated GPSNR guidance.(IP/LC)have the right to give or withhold their consent to any activity that is subject to the FPIC process.
Where the company's operations impinge on rights of indigenous peoples and local communities, we commit to compensate or accommodate them through appropriate and mutually agreed measures. Such measures shall reflect the negotiated outcomes of the FPIC process.
Adopt measures to provide remedy through mutually agreed procedures in cases where the company previously took possession of, caused harm to the lands, territories or resources of indigenous people and local communities, or contribute to either of them or both without securing FPIC. Implementation is jointly monitored by the community and the GPSNR member and/or by a mutually agreed third party or parties.
For the FPIC approach, suppliers are required to observe one of the following approaches:
1.  UN-REDD (2012) Guidelines on Free, Prior and Informed Consent
2.  RSPO (2015) Free, Prior and Informed Consent for RSPO Members
3.  FAO (2015) Free, Prior and Informed Consent Manual
Establishing ongoing, effective, culturally appropriate channels of dialogue with indigenous people and local communities.
Uphold applicable labour rights and labour laws in the jurisdictions where the company is operating, the UNGP, and the intent of the ILOʼs eight core conventions.
This includes:
1.   Freedom of association and collective bargaining in accordance with national and international laws and ILO Conventions No.87 and No.98
2.   No forced labour
3.   No child labour
4.   Decent living wages
5.   No discrimination
6.   Legal working hours
7.   Safe and healthy workplaces
8.   No abusive practices
9.   Gender equity
Safeguards apply to all workers, including contract, temporary and migrant workers.


•  Community Livelihoods
•    Support decent living conditions of local communities (e.g., drinking water, adequate housing sanitation).
Support the right to food and food security of individuals, households and local communities.
Support the economic, social and cultural rights of local people, including through access to education and employment.


•  Increased Production Efficiency
Support training for natural rubber producers, including smallholders, to improve yield and quality.
Manage operations to minimize the amount of energy usage.
Manage operations to maximize natural resource efficiency.
Minimize and mitigate carbon emissions.


•  Effective Implementation of Sustainable Natural Rubber Policy
Disclose public timebound and geographic-specific targets and milestones and set their associated indicators for implementation.
Embed these indicators and milestones into the Company's operations and decision-making through an internal sustainability working group.
Maintain an active, regular stakeholder dialogue to provide relevant information, and to afford opportunities for feedback and suggestions related to fulfillment of the company's commitments.
Participate in and support multi-stakeholder planning to uphold the GPSNR principles in different districts and jurisdictional areas.


•  Supply Chains and Traceability
Conduct supply chain mapping, assess suppliers for social and environmental risks and take measures to mitigate risks.
Support traceability of natural rubber till an appropriate jurisdictional level to confirm or control the conformity of procured natural rubber with the GPSNR Policy Components.
Notify all natural rubber suppliers that material produced in accordance with the GPSNR Policy Components will be preferred, set a deadline so as to meet the policy requirements and ensure that supplier codes and contracts reflect the requirements.
Get involved in supply chains on a periodical base to support their conformity with company commitments through effective incentives, support mechanisms and procurement monitoring systems.
In the case of non-conformity by suppliers with the GPSNR Policy Components, grasp the situation promptly and work with such suppliers to develop timebound implementation plans aimed at remedying past or ongoing harms.


•  Management and Disclosure of Progress toward Sustainable Natural Rubber Procurement
Monitor the progress toward company commitments on a regular base to ascertain the performance.   
Collect information from local stakeholders and affected parties regarding non-conformity with commitments through the use of monitoring systems.
Publicly disclose progress and outcomes related to the implementation of policy-related commitments at least once a year.