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Viet Nam Rubber Group (VRG)

Natural rubber assessment
  • Latest update: March 2021
  • Next scheduled: March 2022

Show media reports (7) Show ESG scores Show supply chain scores Modify score weighting
  • Substantiated concerns
    • In 2015, the FSC Board of Directors took the decision to disassociate from Vietnam Rubber Group after investigation upheld the the Company had engaged in deforestation, Destruction of HCVs Human/Traditional rights violations, Illegal logging/timber trade and Workers' rights violations. See further details and updates here.

Company assessment: Viet Nam Rubber Group (VRG) – March 2021

Assessment date:

Score by disclosure type:

Total: 38.5% 43.5 / 113
  • Organisation: 10.5 / 28 37.5%
  • Policy: 24.8 / 45 55%
  • Practice: 8.3 / 40 20.6%
  • Self-reported: 7.3 / 40 18.1%
  • External: 1 / 40 2.5%
  • Sustainability policy and leadership Sustainability policy and leadership
    6.5 / 9 72.2%
    • Organisation: 4.5 / 5 90%
    • Policy: 1 / 1 100%
    • Practice: 1 / 3 33.3%
    • Self-reported: 1 / 3 33.3%
    • External: 0 / 3 0%
    • Y
      1 / 1

      1. Sustainable natural rubber policy or commitment for all its operations?

      The company has a general policy on sustainable development that covers multiple dimensions of sustainability across the company's operations covering both social and environmental issues.

    • 2. Sustainable natural rubber policy or commitment applies to all suppliers excluding smallholders?

      This indicator is disabled as the company reports that it does not have any non-smallholder suppliers.

    • Y
      1 / 1

      3. High-level position of responsibility for sustainability?

      Steering committee for sustainable development.

    • Y
      1 / 1

      4. One or more members within the board of the company have responsibility for sustainability?

      Steering committee for sustainable development.

    • Y
      1 / 1

      5. Percentage or number of women in senior management team?

      7 (15%) - The company has published the number for all subsidiaries.

    • P
      0.5 / 1

      6. Percentage or number of women board members?

      0 (0%) - The company does not explicitly mention the number of women and men, number calculated from director profiles.

    • N
      0 / 1

      7. Member of multiple industry schemes or other external initiatives to reduce negative environmental or social outcomes associated with natural rubber production?

    • Y
      1 / 1

      8. Collaboration with stakeholders to reduce negative environmental or social outcomes associated with natural rubber production?

      The company cooperates with Oxfam and WWF on guidelines to sustainable natural rubber production and mitigating socio-economic impacts.

    • Y
      1 / 1

      9. Sustainability report published within last two years?

      The SR 2019 is integrated into the annual report.

    • N
      0 / 1

      10. Climate risks assessment available?

  • Landbank, maps and traceability Landbank, maps and traceability
    5 / 10 50%
    • Organisation: 4 / 9 44.4%
    • Policy: 1 / 1 100%
    • Practice: 0 / 0 0%
    • Self-reported: 0 / 0 0%
    • External: 0 / 0 0%
    • Y
      1 / 1

      11. Lists countries and operations?

      Laos, Cambodia, Vietnam (plantations, processing and trading).

    • Y
      1 / 1

      12. Total land area managed/controlled for natural rubber (ha)?

      405,051 - The company reports the total rubber area of the whole group in its annual report 2019.

    • Y
      0.5 / 1

      13. Total natural rubber planted area (ha)?

      390,390 - Information from 2018.

    • 14. Scheme smallholders/outgrowers planted area (ha)?

      This indicator is disabled as the company reports that it does not source from scheme/outgrower smallholder suppliers.

    • N
      0 / 1

      15. Unplanted area (areas designated for future planting) (ha)?

    • N
      0 / 1

      16. Conservation set-aside area, including HCV area (ha)?

    • N
      0 / 1

      17. Maps of estates/management units?

    • N
      0 / 1

      18. Management plans for natural rubber production are available for all estates/management units?

    • Y
      1 / 1

      19. Number of company owned natural rubber processing facilities?

      55 - The company has 55 rubber processing factories.

    • P
      0.5 / 1

      20. Names and coordinates of company owned natural rubber processing facilities?

      The company reports names and addresses of the company owned natural rubber processing facilties. However, all the addresses do not generate locations.

    • Y
      1 / 1

      21. Commitment to traceability of the whole supply chain?

      The company has a Standard Operating Procedure (SOP) to control and record the origin of natural rubber.

  • Certification standards/Sustainability initiatives Certification standards/Sustainability initiatives
    2 / 5 40%
    • Organisation: 0 / 1 0%
    • Policy: 1 / 1 100%
    • Practice: 1 / 3 33.3%
    • Self-reported: 0 / 3 0%
    • External: 1 / 3 33.3%
    • N
      0 / 1

      22. Member of the Global Platform for Sustainable Natural Rubber (GPSNR)?

    • N
      0 / 1

      23. Submitted self-declaration form for the Sustainable Natural Rubber Initiative (SNR-i)?

    • N
      0 / 1

      24. Percentage area (ha) FSC certified?

    • Y
      1 / 1

      25. Certified under voluntary sustainability certification scheme?

      [Externally verified] Three subsidiaries hold PEFC certificates and some of the company's operations are ISO 14001 certified.

    • Y
      1 / 1

      26. Commitment to become 100% certified under voluntary sustainability certification scheme?

      The company plans to re-associate with FSC and become 100% FSC certified by 2024.

  • Deforestation and biodiversity Deforestation and biodiversity
    4.5 / 12 37.5%
    • Organisation: 0 / 1 0%
    • Policy: 4.5 / 7 64.3%
    • Practice: 0 / 4 0%
    • Self-reported: 0 / 4 0%
    • External: 0 / 4 0%
    • Y
      1 / 1

      27. Commitment to zero deforestation or zero conversion of natural ecosystems?

      The company commits to not conduct significant conversion of forests to plantations or non-forest use and to not carry out Illegal logging or the trade in illegal wood or forest products as per the policy for association of FSC.

    • 28. Commitment to zero deforestation or zero conversion of natural ecosystems applies to all sourcing excluding smallholders?

      This indicator is disabled as the company reports that it does not have any non-smallholder suppliers.

    • P
      0.5 / 1

      29. Criteria for defining deforestation?

      The company reports that it will not destroy forest areas as per the Policy for Association of FSC, however, no cut-off date beyond which conversion will not be accepted is stated.

    • N
      0 / 1

      30. Evidence of monitoring deforestation?

    • N
      0 / 1

      31. Amount of illegal/non-complaint deforestation recorded in own operations?

    • N
      0 / 1

      32. Commitment to restoration of non-compliant deforestation/conversion?

      The company has a plan to restore 5,000 ha of forest, however, it is not clear if there is a commitment to restore non-complaint deforestation/conversion across all operations. Additionally, no cut-off date beyond which deforestation would not be accepted was stated.

    • N
      0 / 1

      33. Implementing a landscape or juridictional level approach?

    • Y
      1 / 1

      34. Commitment to biodiversity conservation?

      The company commits to contribute to the development and protection of forests, conservation of biodiversity, non-encroachment of forests and no harm to forests.

    • N
      0 / 1

      35. Identified species of conservation concern, referencing international or national system of species classification?

    • N
      0 / 1

      36. Examples of species and/or habitat conservation management?

    • N
      0 / 1

      37. Commitment to no hunting or only sustainable hunting of species?

    • Y
      1 / 1

      38. Commitment to protect areas from illegal activities?

      The company reports its commitment to not carry out Illegal logging or the trade in illegal wood of forest products as per the Policy for Association of FSC.

    • Y
      1 / 1

      39. Commitment not to use genetically modified organisms?

      The company commits to not introduce genetically modified organisms as per the policy for association of FSC.

  • HCV, HCS and impact assessments HCV, HCS and impact assessments
    2 / 7 28.6%
    • Organisation: 0 / 0 0%
    • Policy: 2 / 3 66.7%
    • Practice: 0 / 4 0%
    • Self-reported: 0 / 4 0%
    • External: 0 / 4 0%
    • Y
      1 / 1

      40. Commitment to conduct High Conservation Value (HCV) assessments?

      The company reports its commitment to not destroy High Conservation Values in forestry operations as per the policy for association of FSC.

    • N
      0 / 1

      41. High Conservation Value (HCV) assessments available?

    • N
      0 / 1

      42. High Conservation Value (HCV) management and monitoring plans available?

    • N
      0 / 1

      43. Commitment to the High Carbon Stock (HCS) approach?

    • N
      0 / 1

      44. High Carbon Stock (HCS) assessments available?

    • Y
      1 / 1

      45. Commitment to conduct social and environmental impact assessments (SEIAs)?

      The company conducts SEIAs.

    • N
      0 / 1

      46. Social and environmental impact assessment (SEIAs) undertaken, and associated management and monitoring plans?

  • Soils, fire and GHG emissions Soils, fire and GHG emissions
    4.75 / 15 31.7%
    • Organisation: 0 / 4 0%
    • Policy: 3 / 6 50%
    • Practice: 1.8 / 5 35%
    • Self-reported: 1.8 / 5 35%
    • External: 0 / 5 0%
    • P
      0.5 / 1

      47. Commitment to no planting on peat of any depth?

      The company has a policy to not grow on peatland but does not specify depth or reference a recognised definition of peatland.

    • N
      0 / 1

      48. Landbank or planted area on peat (ha)?

    • N
      0 / 1

      49. Implementation of commitment to no planting on peat of any depth?

    • P
      0.5 / 1

      50. Commitment to best management practices for soils and peat?

      The company commits to use best management practices for soils. It is unclear if the company has landbank on peat.

    • P
      0.5 / 1

      51. Evidence of best management practices for soils and peat?

      The company provides some examples of its member companies applying intercropping.

    • Y
      1 / 1

      52. Commitment to best/sustainable tapping practices?

      The company reports a commitment to best tapping practices.

    • P
      0.75 / 1

      53. Evidence of best/sustainable tapping practices?

      The company provides some examples, however, information is not externally verified.

    • Y
      1 / 1

      54. Commitment to zero burning?

      The company has a commitment to zero burning for new planting and replanting.

    • P
      0.5 / 1

      55. Evidence of fire monitoring and management?

      The company provides examples of fire management but not monitoring. Information is not externally verified.

    • N
      0 / 1

      56. Details/number of hotspots/fires in company estates/management units?

    • N
      0 / 1

      57. Time-bound commitment to reduce greenhouse gas (GHG) emissions intensity?

    • N
      0 / 1

      58. GHG emissions intensity?

    • N
      0 / 1

      59. GHG emissions from land use change?

    • N
      0 / 1

      60. Progress towards commitment to reduce GHG emissions intensity?

    • N
      0 / 1

      61. Methodology used to calculate GHG emissions?

  • Water, chemical and pest management Water, chemical and pest management
    5 / 17 29.4%
    • Organisation: 0.5 / 2 25%
    • Policy: 2 / 6 33.3%
    • Practice: 2.5 / 9 27.8%
    • Self-reported: 2.5 / 9 27.8%
    • External: 0 / 9 0%
    • N
      0 / 1

      62. Time-bound commitment to improve water use intensity?

    • P
      0.5 / 1

      63. Water use intensity?

      The company reports water use figures for processing of different grades of natural rubber. However, it is unclear if these figures cover all operations/activities.

    • N
      0 / 1

      64. Progress towards commitment on water use intensity?

    • N
      0 / 1

      65. Time-bound commitment to improve water quality (BOD and COD)?

    • N
      0 / 1

      66. Progress towards commitment on water quality (BOD and COD)?

    • P
      0.75 / 1

      67. Treatment of effluents from processing facilities?

      The company reports it treats waste from rubber planting projects and latex and rubber wood processing factories in compliance with the national standards or standard for the treatment of waste and substances polluting the air, water, and noise environment in the project areas.

    • P
      0.5 / 1

      68. Proportion of processing facilities with closed-loop water treatment system?

      The company provides an example of a closed-loop system but it is not clear if all operations operate using this same system. Information is not externally verified.

    • Y
      1 / 1

      69. Commitment to protect natural waterways through buffer zones?

      The company reports it does not plant rubber trees on land along two sides of rivers and streams according to regulations (50 - 100 meters or more away), to help maintain conditions for forests and natural vegetation maintenance and development.

    • N
      0 / 1

      70. Implementation of commitment to protect natural waterways through buffer zones?

    • P
      0.75 / 1

      71. Reducing odours from natural rubber processing facilities?

      The company gives one example of odour removal. Information is not externally verified.

    • Y
      1 / 1

      72. Commitment to minimise the use of chemicals, including pesticides and chemical fertilisers?

      The company commits to follow the UN REDD guidance on sustainable natural rubber production which includes minimising the use of fertilisers and pesticides.

    • N
      0 / 1

      73. Commitment to no use of World Health Organisation (WHO) Class 1A and 1B pesticides?

    • N
      0 / 1

      74. Commitment to no use of chemicals listed under the Stockholm Convention and Rotterdam Convention?

    • N
      0 / 1

      75. Chemical usage per ha or list of chemicals used?

    • N
      0 / 1

      76. Implementation of commitment to reduce chemical usage?

    • N
      0 / 1

      77. Integrated Pest Management (IPM) approach?

    • P
      0.5 / 1

      78. Waste management system in place to avoid negative impacts?

      The company mentions having a waste management system. However, it is unclear if the company is implementing this.

  • Community, land and labour rights Community, land and labour rights
    11.75 / 25 47%
    • Organisation: 1 / 5 20%
    • Policy: 8.8 / 14 62.5%
    • Practice: 2 / 6 33.3%
    • Self-reported: 2 / 6 33.3%
    • External: 0 / 6 0%
    • Y
      1 / 1

      79. Commitment to human rights?

      The company reports that it will not violate traditional and human rights in forestry operations as per the Policy for Association of FSC.

    • 80. Commitment to human rights applies to all sourcing excluding smallholders?

      This indicator is disabled as the company reports that it does not have any non-smallholder suppliers.

    • Y
      1 / 1

      81. Commitment to respect Indigenous and local communities' rights?

      The company commits to the FSC Policy for Association which contains this commitment.

    • Y
      1 / 1

      82. Commitment to respect legal and customary land tenure rights?

      The company reports its commitment to respect legal and traditional land tenure rights.

    • Y
      1 / 1

      83. Commitment to free, prior and informed consent (FPIC)?

      The company states it applies the Voluntary Guidelines on Mitigating Socio-Environmental Risks for Vietnamese outward investors in agriculture in the Mekong subregion which refer to FPIC.

    • 84. Commitment to free, prior and informed consent (FPIC) applies to all suppliers excluding smallholders?

      This indicator is disabled as the company reports that it does not have any non-smallholder suppliers.

    • N
      0 / 1

      85. Details on Free, prior and informed consent (FPIC) process available?

    • P
      0.5 / 1

      86. Examples of local stakeholder engagement to prevent conflicts?

      One example of stakeholder engagement could be found.

    • N
      0 / 1

      87. Details of process for addressing land conflicts available?

    • P
      0.75 / 1

      88. Supports the inclusion of women across natural rubber operations, including addressing barriers faced?

      The company has an established committee for the advancement of women and conducts training for women in rubber cultivation and processing. Information is not externally verified.

    • N
      0 / 1

      89. Commitment to mitigate impacts on food security?

    • P
      0.75 / 1

      90. Progress on commitment to mitigate impacts on food security?

      The company gives examples of intercropping models for smallholders to establish more secure incomes during rubber tree establishment and periods of rubber price volatility. This information is not externally verified.

    • Y
      1 / 1

      91. Commitment to provide essential community services and facilities?

      The company reports its commitment to facilitating the improvement of the livelihoods for employees and communities and contributing to the new rural construction and poverty reduction.

    • P
      0.75 / 1

      92. Progress on commitment to provide essential community services and facilities?

      The company provides examples of essential community services and facilities provided including medical centers, schools and roads.

    • Y
      1 / 1

      93. Commitment to provide business/work opportunities for local communities?

      The company reports its commitment to provide work opportunities for local communities.

    • Y
      1 / 1

      94. Commitment to Fundamental ILO Conventions or Free and Fair Labour Principles?

      The company commits to not violate any of the ILO Core Conventions as per the policy for association of FSC.

    • N
      0 / 1

      95. Commitment to eliminate gender related discrimination with regards to employment?

    • N
      0 / 1

      96. Progress on commitment to eliminate gender related discrimination with regards to employment?

    • N
      0 / 1

      97. Percentage or number of temporary employees?

    • Y
      1 / 1

      98. Percentage or number of women employees?

      34,404 (41%) - Figure from 2019.

    • N
      0 / 1

      99. Commitment to pay at least minimum wage?

    • N
      0 / 1

      100. Progress on commitment to pay at least minimum wage?

    • N
      0 / 1

      101. Reporting of salary by gender?

    • Y
      1 / 1

      102. Commitment to address occupational health and safety?

      The company reports compliance with the law on Occupational Safety and Health, the law on Environmental Protection, and public health standards in its sustainable forest development program (committed to FSC).

    • N
      0 / 1

      103. Provision of personal protective equipment and related training?

    • N
      0 / 1

      104. Time lost due to work-based injuries?

    • N
      0 / 1

      105. Number of fatalities as a result of work-based accidents?

  • Smallholders and suppliers Smallholders and suppliers
    1.5 / 7 21.4%
    • Organisation: 0.5 / 1 50%
    • Policy: 1 / 2 50%
    • Practice: 0 / 4 0%
    • Self-reported: 0 / 4 0%
    • External: 0 / 4 0%
    • Y
      1 / 1

      106. Commitment to support smallholders?

      The company commits to support smallholders.

    • P
      0.5 / 1

      107. Percentage of supply from smallholders?

      60,000 (19.5%) - The company states that it used 60,000 tons of rubber from smallholders out of 307,000 tons. However, information is over two years old.

    • 108. Programme to support scheme smallholders/outgrowers?

      This indicator is disabled as the company reports that it does not source from scheme/outgrower smallholder suppliers.

    • 109. Percentage of scheme smallholders/outgrowers involved in programme?

      This indicator is disabled as the company reports that it does not source from scheme/outgrower smallholder suppliers.

    • N
      0 / 1

      110. Programme to support independent smallholders?

    • N
      0 / 1

      111. Percentage of independent smallholders involved in programme?

    • N
      0 / 1

      112. Process used to engage smallholder suppliers on compliance with company's policy and/or legal requirements?

    • N
      0 / 1

      113. Number or percentage of smallholder suppliers engaged on compliance with company's policy and/or legal requirements?

    • 114. Process used to prioritise, assess and/or engage non-smallholder suppliers on compliance with company's policy and/or legal requirements?

      This indicator is disabled as the company reports that it does not have any non-smallholder suppliers.

    • 115. Number or percentage of non-smallholder suppliers assessed and/or engaged on compliance with company's policy and/or legal requirements?

      This indicator is disabled as the company reports that it does not have any non-smallholder suppliers.

    • 116. Suspension or exclusion criteria for suppliers?

      This indicator is disabled as the company reports that it does not have any non-smallholder suppliers.

    • N
      0 / 1

      117. Percentage of supply coming from agroforestry?

  • Governance and grievances Governance and grievances
    0.5 / 6 8.3%
    • Organisation: 0 / 0 0%
    • Policy: 0.5 / 4 12.5%
    • Practice: 0 / 2 0%
    • Self-reported: 0 / 2 0%
    • External: 0 / 2 0%
    • N
      0 / 1

      118. Commitment to ethical conduct and prohibition of corruption?

    • N
      0 / 1

      119. Progress on commitment to ethical conduct and prohibition of corruption?

    • N
      0 / 1

      120. Disclosure of the company's management approach to tax and payments to governments?

    • N
      0 / 1

      121. Whistleblowing procedure?

    • P
      0.5 / 1

      122. Own grievance or complaints system open to all stakeholders?

      The company has a grievance system but no details are given.

    • N
      0 / 1

      123. Details of complaints and grievances disclosed?

Media monitor: Viet Nam Rubber Group (VRG)

SPOTT monitors global media sources for coverage of assessed companies. The media monitor gathers reports about specific activities related to the assessment indicator categories. ZSL does not assess or score the validity of media coverage, but users can explore the media monitor to provide context on implementation, and infer risks associated with reported operations on the ground.

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