The automotive industry is on a mission to make itself more sustainable.
Automakers are crafting new forms of eco-friendly steel, for example, or creating e-fuels that produce no carbon dioxide and investing in new more abundant materials for batteries.
However, there is one rather large elephant in the room – rubber. Natural rubber is produced by tapping certain types of trees for latex which, typically, are found in the global South.
Synthetic rubber production is possible, as well, but even this is derived from petroleum, making it vulnerable to fluctuations in the price of crude oil and to global shortages.
Kiwk Fit, meanwhile, as one of the biggest service centre networks in the UK and Europe, is looking to make rubber production better for everyone as part of its PROJECT TREE initiative – from the farmers to drivers and to the planet.
Auto Futures has been talking to Mark Slade, Kwik Fit’s Managing Director to find out more about the project.
Seeing the Wood for the Trees
Kwik Fit’s Managing Director, Mark Slade
“Tyres may look simple, but they are made of a complex blend of materials and contain both natural and synthetic rubbers as they possess different properties and meet different demands of modern motoring,” explains Slade.
However, tyres have a complex journey from the trees to the roads.
“The production of tyres accounts for about 70% of global natural rubber consumption, and the vast majority of this rubber comes from smallholders in Southeast Asia, mainly in Thailand and Indonesia,” says Slade.
“Many drivers probably don’t make the connection between their tyres and the sustainability of natural rubber trees, but we hope that the project will help them do that.”
PROJECT TREE was launched at the beginning of the year with British drivers being able to purchase Pirelli tyres with a portion of the purchase price being used to support sustainable rubber production in Sumatra, Indonesia.
Kwik Fit, despite not manufacturing tyres itself, is no stranger to rubber production.
“The ultimate owner of Kwik Fit, ITOCHU, is deeply involved in the natural rubber business through its ownership of a rubber processing company in Indonesia,” explains Slade.
“To meet future demand ethically, the industry must ensure it is transparent and sustainable.”
According to Slade, Kwik Fit, under ITOCHU’s ownership, is well-placed to start delivering a better way to track rubber production.
“The goal of the project is to harness the involvement that ITOCHU has throughout the supply chain and connect all the stages of the process – right through to when the end-user gets their tyres fitted at Kwik Fit.
“The aim is to ultimately establish full traceability throughout the entire process to protect rainforest areas and also ensure farmers can operate sustainably and profitably in the long term.”
A Fairer System
“PROJECT TREE uses mass balance credit methodology to track and reward more sustainable production. Blockchain technology is used to identify the volume of raw latex collected and the location source of this rubber,” explains Slade.
Working with rubber farmers with smallholdings in Sumatra, Kwik Fit and the PROJECT TREE initiative makes sure that the tyre manufacturing pays a premium for the sustainable rubber which helps protect the price paid to the participating farmers.
“The tyre manufacturer is awarded a number of credits depending on the quantity of rubber bought under the scheme and applies these credits to the equivalent quantity of tyres it produces. These tyres are then supplied to us at Kwik Fit and can be selected by the motorist,” says Slade.
“A portion of the price of the tyre contributes to the cost of the project, with the exact amount varying depending on the specific tyre. This money funds the administration of the project, and elements such as training and tools, but the single largest expense is the incentives paid to the smallholders, over and above the market price for rubber.”
An Indonesian rubber farmer who has joined PROJECT TREE
That extra money will certainly be welcome among the various rubber-producing smallholders on the island of Sumatra. Getting accurate figures on the pay, demographics, working hours, conditions, and pay for rubber farmers anywhere is difficult. However, according to a 2020 report from the US Department for Labor, child labour was known to be used in Indonesian rubber production.
Another 2020 report from the US Agency for International Development found that as little as 30% of the overall rubber price goes to the producer, with much going to intermediaries and middlemen.
To be clear, there are other sustainability frameworks in operation. The Forest Stewardship Council, for example, emphasises traceability and labour rights with certification costs being absorbed by the supplier. The Fair Rubber Association, meanwhile, absorbs the cost of its certifications but only accepts suppliers if a buyer is available.
None of these schemes will, in isolation or otherwise, completely solve the problems currently affecting rubber production.
For Kwik Fit and PROJECT TREE, the company is taking steps to ensure that its suppliers are meeting expectations.
“We have long-established sourcing protocols and carry out rigorous assessments of our suppliers with regard to both product performance and overall corporate responsibility, including environmental and sustainability issues,” says Slade.
“It is important for us to encourage responsible and ethical operations right through our supply chain, particularly in areas which may not get the greatest attention from consumers.”
Conscious Consumers
“Kwik Fit is the UK’s largest tyre retailer,” says Slade, “with tyres being at the core of our overall purpose of providing customers with ‘peace of mind motoring.’ For many motorists, peace of mind is not just about performance and cost, they are also considering how they can reduce the overall impact of their driving.”
For British drivers, sustainability is becoming an increasingly central part of their calculations.
“The sustainability of the products they buy is therefore increasingly important and as a leader in the aftermarket we are trying to broaden the options available,” says Slade.
“We’ve been encouraged by the response to the initial stages of this scheme – car owners have been willing to pay the small premium for the Project TREE tyres and sales have exceeded our expectations.”
“At Kwik Fit we don’t make tyres or have links to specific manufacturers which means that Project Tree supported natural rubber is being used in tyres from different leading suppliers, with many more in discussion on the potential to include it in their own products. If natural rubber can be produced to meet growing demand in a sustainable way then it makes sense to continue using it.”
Similarly, Slade explains that Murfitt’s Industries, a Kwik Fit sister company, is working to reprocess and recycle all the used tyres taken off cars at its centres.
“The Murfitt’s team is continually looking at ways to recover as much material as possible from a used tyre and thus reduce the amount of virgin material going into tyre production,” says Slade.
Of course, Kwik Fit isn’t in the fight alone.
“Every driver can help in that regard by ensuring their tyres last as long as possible. This can be done through simple measures such as fitting the right tyre in the firsts place, keeping them at the right pressure, making sure they are wearing evenly and not driving aggressively. As with any product, prolonging its useful life is a crucial way of reducing environmental impact,” says Slade.
PROJECT TREE might not completely solve all the problems with natural rubber production but, by shining a light on the problem and paying farmers fairly, it will certainly help.
Keyword: The Elephant in the Room – Ensuring Fair, Sustainable Rubber Production with Kwik Fit’s PROJECT TREE