Subject category:
Ethics and Social Responsibility
Published in:
2024
Length: 24 pages
Data source: Field research
Topics:
Sustainability; Traceability; Strategy - decision making and problem solving; Sustainable sourcing; Business ethics; Sustainability trade-offs; Living wage; Compliance innovation; EU compliance; Deforestation; Sustainable natural rubber; Livelihood; EUDR; Leadership & accountability; Corporate sustainability and responsibility (CS&R)
Abstract
In May 2023, the European Parliament adopted the new EU regulation on deforestation-free products (EUDR), encompassing natural rubber as one of the key commodities. This regulation demands that Michelin - a global tire and rubber manufacturing company - trace the origins of its natural rubber to specific farms, providing geolocalization coordinates and proof of land legality from which the rubber was harvested. This is particularly challenging given that over 85% of the global natural rubber supply is supplied by approximately 6 million smallholder farmers. Many of these smallholders lack proper land titles, access to geolocalization coordinates, or the capacity and resources needed to meet EUDR rules. The EUDR would be enforced as of December 30, 2024, leaving Michelin with a short preparation and adaptation period. James Chang, the Project Lead at the Natural Rubber Sustainability department, stands at the center of this challenge. His recent encounters with an environmental expert, smallholder farmer, and Michelin's Human Rights and Environmental Governance Committee representative underscore the complexities of the EUDR requirements. Michelin's transition from commitment to compliance, balancing smallholder livelihoods and environmental impact, is the central theme of this case. The case raises vital questions about accountability, influence, and the future of sustainability.
Teaching and learning
This item is suitable for postgraduate and executive education courses.Time period
The events covered by this case took place in 2023.Geographical setting
Region:
Asia
Countries:
Indonesia; Singapore
Locations:
Singapore;Jambi (Central Sumatra)
Featured company
Michelin
Employees:
10000+
Turnover:
EUR 28.6bn
Type:
Public company
Industry:
Tire industry
Featured protagonist
- James Chang (male), Project Lead Natural Rubber Sustainability
About
Abstract
In May 2023, the European Parliament adopted the new EU regulation on deforestation-free products (EUDR), encompassing natural rubber as one of the key commodities. This regulation demands that Michelin - a global tire and rubber manufacturing company - trace the origins of its natural rubber to specific farms, providing geolocalization coordinates and proof of land legality from which the rubber was harvested. This is particularly challenging given that over 85% of the global natural rubber supply is supplied by approximately 6 million smallholder farmers. Many of these smallholders lack proper land titles, access to geolocalization coordinates, or the capacity and resources needed to meet EUDR rules. The EUDR would be enforced as of December 30, 2024, leaving Michelin with a short preparation and adaptation period. James Chang, the Project Lead at the Natural Rubber Sustainability department, stands at the center of this challenge. His recent encounters with an environmental expert, smallholder farmer, and Michelin's Human Rights and Environmental Governance Committee representative underscore the complexities of the EUDR requirements. Michelin's transition from commitment to compliance, balancing smallholder livelihoods and environmental impact, is the central theme of this case. The case raises vital questions about accountability, influence, and the future of sustainability.
Teaching and learning
This item is suitable for postgraduate and executive education courses.Settings
Time period
The events covered by this case took place in 2023.Geographical setting
Region:
Asia
Countries:
Indonesia; Singapore
Locations:
Singapore;Jambi (Central Sumatra)
Featured company
Michelin
Employees:
10000+
Turnover:
EUR 28.6bn
Type:
Public company
Industry:
Tire industry
Featured protagonist
- James Chang (male), Project Lead Natural Rubber Sustainability