DUNLOP Accelerates Efforts Toward Sustainable Natural Rubber Procurement

The DUNLOP Group has, for the first time, systematically organized initiatives concerning the sustainable procurement of natural rubber. Centering on the previously announced group-wide “Sustainable Natural Rubber (SNR^*1) Subcommittee”, we will promote these initiatives and accelerate our activities.

■ Systematic categorization of initiatives for sustainable natural rubber procurement Natural rubber is a key raw material for the Dunlop Group. Its production is supported by many smallholder farmers, and thus challenges related to farmer productivity, income, and environmental and social issues directly impact the sustainable and stable procurement of natural rubber.

In accordance with the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD) ^*2, the Dunlop Group has identified and assessed the dependence and impact of our business activities on natural capital as well as the resulting risks and opportunities in accordance with the “LEAP Approach, ” and disclosed information accordingly.

Our newly established SNR Subcommittee systematically categorized natural rubber risk mitigation measures in accordance with the principles of the “Action Framework (AR3T)” proposed by the Science Based Targets Network (SBTN) ^*3, with the aim of linking identified risks and opportunities to our business activities.

The AR3T framework systematically categorizes the actions taken by businesses to address the impact of their business activities on nature from the perspectives of avoidance, reduction, restoration/regeneration, and transformation.

Through this approach, we will clarify the roles of initiatives, such as risk assessment, farmer support, and research and development, that we have previously pursued separately, as well as the measures we need to address going forward, to accelerate our efforts toward sustainable natural rubber procurement.

■ Expanding support to North Sumatra based on the outcomes of Phase 1 Indonesia is one of the world’s leading producers of natural rubber, and Sumatra Island is one of its major production areas.

During Phase 1 (2022–2025), we supported more than 1,000 smallholder farmers in the Jambi region of Sumatra. In the project areas, both productivity and profitability improved, with natural rubber yields increasing by up to approximately 19%.

The Farmer Support Project is an initiative designated under the “Reduction” objective of AR3T. In Phase 2, we will build upon the practical insights gained in Phase 1 to expand our support to the Rantau Prapat region in North Sumatra, which also faces similar risks within the supply chain. We aim to improve the productivity and profitability of farmers, thereby reducing risks in the natural rubber supply chain.

In the Jambi region, meanwhile, we will provide follow-up training to farmers who participated in Phase 1. By continuously providing technical guidance and agricultural supplies, we aim to ensure that the techniques are fully adopted to further increase yields.

Outline of Phase 2

Comment from Dwi Sutrisno, Sustainability Manager, PT. Hok Tong Indonesia “This Project is a valuable initiative that strengthens the knowledge, skills, and capabilities of smallholder farmers, while supporting higher productivity and more sustainable farming practices. As the implementing partner, PT. Hok Tong Indonesia is proud to contribute to this effort and to see the positive impact it brings to farmers and their communities.”

■ Future prospects The DUNLOP Group designates “biodiversity” as one of its material issues^*4 and aims to be “a group that understands its dependence on and impact on natural resources, such as natural rubber, and works to coexist with surrounding ecosystems.”

Moving forward, based on our “Sustainable Natural Rubber Policy”^*5, we will continue to promote initiatives centered on our group-wide SNR Subcommittee through discussions and collaborative efforts with stakeholders, including suppliers and producers. Additionally, we will seek to ensure the sustainable and stable procurement of natural rubber and strengthen the resilience of our supply chain, while working to address social issues such as environmental conservation in production regions and improving the living standards of producers.

Since 2026, we have unified all communication under the DUNLOP name. We aim to embody three core values across all of our products and services: “Confidence to Face Every Challenge,” “Experiences that Exceed Expectations,” and “Pushing Beyond Limits.” We will continue pursuing our goal of creating positive emotion through innovative experiences for people all over the world. DUNLOP’s brand statement, “TAKING YOU BEYOND,” reflects our commitment to continually expanding the possibilities for all those who embrace challenges and guiding them beyond their limits.

Source: DUNLOP