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Vietnam Rubber Group (VRG)

Natural rubber assessment
  • Latest update: December 2019
  • Next scheduled: November 2020

Show ESG scores Show supply chain scores

Company assessment: Vietnam Rubber Group (VRG) – November 2019

Assessment date:

Score by disclosure type:

Total: 42.7% 48.25 / 113
  • Organisation: 11 / 26 42.3%
  • Policy: 27 / 47 57.4%
  • Practice: 10.3 / 40 25.6%
  • Self-reported: 8.5 / 40 21.3%
  • External: 0 / 40 0%
  • Sustainability policy and leadership Sustainability policy and leadership
    5.5 / 10 55%
    • Organisation: 3.5 / 5 70%
    • Policy: 1 / 2 50%
    • 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?

    • N
      0 / 1
      Source

      2. Sustainability natural rubber policy or commitment applies to all sourcing excluding smallholders?

    • Y
      1 / 1

      3. High-level position of responsibility for sustainability?

      Steering Committee for Sustainable Development which includes both senior managers and Board of Director members

    • Y
      1 / 1

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

      Steering Committee for Sustainable Development which includes both senior managers and Board of Director members

    • P
      0.5 / 1

      5. Percentage or number of women board members?

      0 - The company does not explicitly report the number of women board members

    • N
      0 / 1
      Source

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

      0 - The company does not explicitly report the number of women in senior management and the information provided is undated

    • N
      0 / 1
      Source

      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?

      2,018

    • N
      0 / 1
      Source

      10. Climate risks assessment available?

  • Landbank, maps and traceability Landbank, maps and traceability
    5.5 / 10 55%
    • Organisation: 5.5 / 9 61.1%
    • Policy: 0 / 1 0%
    • Practice: 0 / 0 0%
    • Self-reported: 0 / 0 0%
    • External: 0 / 0 0%
    • Y
      1 / 1

      11. Lists countries and operations?

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

    • Y
      1 / 1

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

      407,977

    • Y
      1 / 1

      13. Total natural rubber planted area (ha)?

      390,890

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

      This indicator is disabled as the company has informed ZSL that it does not source from scheme smallholders/outgrowers

    • N
      0 / 1
      Source

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

    • N
      0 / 1
      Source

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

      The company has a plan to set aside and regenerate 20,000 ha of forests however it is unclear how much has already been established

    • P
      0.5 / 1

      17. Maps of estates/management units?

      Maps of concessions are available only for the company's Cambodian operations

    • Y
      1 / 1

      18. Number of company owned natural rubber processing facilities?

      49

    • Y
      1 / 1

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

      The company provides names and addresses of all of its members with processing facilities

    • N
      0 / 1

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

    • N
      0 / 1

      21. Commitment to traceability of the whole supply chain?

      The company only has a traceability commitment in relation to rubberwood but not for natural rubber. Additionally, some of the company's subsidiaries implemented traceability measures to processing facilities level

  • Deforestation and biodiversity Deforestation and biodiversity
    4 / 10 40%
    • Organisation: 0 / 1 0%
    • Policy: 4 / 5 80%
    • Practice: 0 / 4 0%
    • Self-reported: 0 / 4 0%
    • External: 0 / 4 0%
    • Y
      1 / 1

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

    • N
      0 / 1
      Source

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

    • N
      0 / 1

      24. Evidence of monitoring deforestation?

    • N
      0 / 1
      Source

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

    • N
      0 / 1
      Source

      26. Implementing a landscape or juridictional level approach?

    • Y
      1 / 1

      27. Commitment to biodiversity conservation?

    • N
      0 / 1
      Source

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

    • N
      0 / 1
      Source

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

    • Y
      1 / 1

      30. Commitment to protect areas from illegal activities?

    • Y
      1 / 1

      31. Commitment not to use genetically modified organisms?

      The company has a commitment to the FSC Policy for Association which includes GMOs

  • HCV, HCS and impact assessments HCV, HCS and impact assessments
    3 / 6 50%
    • Organisation: 0 / 0 0%
    • Policy: 2 / 3 66.7%
    • Practice: 1 / 3 33.3%
    • Self-reported: 0 / 3 0%
    • External: 0 / 3 0%
    • Y
      1 / 1

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

    • N
      0 / 1
      Source

      33. High Conservation Value (HCV) assessments available?

    • N
      0 / 1
      Source

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

    • N
      0 / 1
      Source

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

    • Y
      1 / 1

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

    • Y
      1 / 1

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

  • Soils, fire and GHG emissions Soils, fire and GHG emissions
    4.5 / 12 37.5%
    • Organisation: 0 / 3 0%
    • Policy: 2.5 / 5 50%
    • Practice: 2 / 4 50%
    • Self-reported: 1.3 / 4 31.3%
    • External: 0 / 4 0%
    • 38. Commitment to no planting on peat of any depth?

      This indicator is disabled as the company has informed ZSL that it doesn't have landbank on peat

    • 39. Landbank or planted area on peat (ha)?

      This indicator is disabled as the company has informed ZSL that it doesn't have landbank on peat

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

      This indicator is disabled as the company has informed ZSL that it doesn't have landbank on peat

    • P
      0.5 / 1

      41. 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

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

      The company provides some examples of its member companies applying intecropping

    • Y
      1 / 1

      43. Commitment to best/sustainable tapping practices?

    • P
      0.75 / 1

      44. Evidence of best/sustainable tapping practices?

    • Y
      1 / 1

      45. Commitment to zero burning?

    • P
      0.75 / 1

      46. Evidence of management and monitoring fires?

    • N
      0 / 1
      Source

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

    • N
      0 / 1

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

      The company only has a general commitment to reduce emissions

    • N
      0 / 1
      Source

      49. GHG emissions intensity?

    • N
      0 / 1
      Source

      50. Report GHG emissions from land use change?

    • N
      0 / 1
      Source

      51. Methodology used to calculate GHG emissions?

    • N
      0 / 1
      Source

      52. Progress towards commitment to reduce GHG emissions intensity?

  • Water, chemical and pest management Water, chemical and pest management
    4.75 / 17 27.9%
    • Organisation: 0 / 2 0%
    • Policy: 2.5 / 6 41.7%
    • Practice: 2.3 / 9 25%
    • Self-reported: 2.3 / 9 25%
    • External: 0 / 9 0%
    • N
      0 / 1
      Source

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

    • N
      0 / 1
      Source

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

    • P
      0.75 / 1

      55. Treatment of effluents from processing facilities?

    • P
      0.75 / 1

      56. Percentage of processing facilities with closed-loop water treatment system (100%)?

    • P
      0.5 / 1
      Source

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

      The company commits to follow the UN REDD guidance on sustainable natural rubber production which has targets however it is unclear what the timeline is and which targets are relevant for the company

    • N
      0 / 1
      Source

      58. Water use intensity?

    • N
      0 / 1
      Source

      59. Progress towards commitment on water use intensity?

    • Y
      1 / 1

      60. Commitment to protect natural waterways through buffer zones?

    • N
      0 / 1
      Source

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

    • P
      0.75 / 1

      62. Reducing odours from natural rubber processing facilities?

    • Y
      1 / 1

      63. 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
      Source

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

    • N
      0 / 1
      Source

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

    • N
      0 / 1
      Source

      66. Implementation of commitment to reduce chemical usage?

    • N
      0 / 1
      Source

      67. Integrated Pest Management (IPM) approach?

    • N
      0 / 1

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

    • N
      0 / 1
      Source

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

  • Community, land and labour rights Community, land and labour rights
    15 / 28 53.6%
    • Organisation: 1 / 4 25%
    • Policy: 12 / 17 70.6%
    • Practice: 2 / 7 28.6%
    • Self-reported: 2 / 7 28.6%
    • External: 0 / 7 0%
    • Y
      1 / 1

      70. Commitment to human rights?

    • N
      0 / 1
      Source

      71. Commitment to human rights applies to all sourcing excluding smallholders?

    • Y
      1 / 1

      72. Commitment to respect indigenous and local communities' rights?

    • Y
      1 / 1

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

    • Y
      1 / 1

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

    • N
      0 / 1
      Source

      75. FPIC commitment applies to all sourcing excluding smallholders?

    • N
      0 / 1
      Source

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

    • N
      0 / 1
      Source

      77. Examples of local stakeholder engagement to prevent conflicts?

    • N
      0 / 1
      Source

      78. Details of process for addressing land conflicts available?

    • Y
      1 / 1

      79. Commitment to support the inclusion of women across natural rubber operations, including addressing barriers faced?

    • N
      0 / 1
      Source

      80. Commitment to mitigate impacts on food security?

    • P
      0.75 / 1

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

    • Y
      1 / 1

      82. Commitment to provide essential community services and facilities?

    • P
      0.75 / 1

      83. 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

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

    • Y
      1 / 1

      85. Commitment to respect all workers' rights?

    • Y
      1 / 1

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

      The company has a commitment not to violate ILO Conventions

    • Y
      1 / 1

      87. Commitment to eliminate gender related discrimination with regards to employment and occupation?

    • 88. Percentage or number of temporary employees?

      This indicator is disabled as the company has informed ZSL that it does not have any temporary employees

    • Y
      1 / 1

      89. Percentage or number of women employees?

      33,234 (40.6%)

    • Y
      1 / 1

      90. Commitment to pay at least minimum wage?

    • P
      0.5 / 1

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

      The company only states that the average wage was higher than the minimum wage

    • N
      0 / 1

      92. Reporting of salary by gender?

    • Y
      1 / 1

      93. Commitment to address occupational health and safety?

    • N
      0 / 1
      Source

      94. Time lost due to work-based injuries?

    • N
      0 / 1
      Source

      95. Reduction of time lost due to work-based injuries?

    • N
      0 / 1
      Source

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

    • N
      0 / 1
      Source

      97. Zero fatalities as a result of work-based accidents?

    • N
      0 / 1
      Source

      98. Provision of personal protective equipment and related training?

  • Certification standards/Sustainability initiatives Certification standards/Sustainability initiatives
    1.5 / 5 30%
    • Organisation: 0 / 1 0%
    • Policy: 1 / 1 100%
    • Practice: 0.5 / 3 16.7%
    • Self-reported: 0.5 / 3 16.7%
    • External: 0 / 3 0%
    • N
      0 / 1
      Source

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

    • N
      0 / 1
      Source

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

    • Y
      1 / 1

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

      The company is currently disassociated from the FSC however it made a commitment to become 100% FSC certified by 2024 and the company is currently working on the Roadmap of reassociation

    • P
      0.5 / 1

      102. Certified under voluntary sustainability certification scheme?

      Some of the company's operations are ISO 14001 certified

    • N
      0 / 1
      Source

      103. Percentage area (ha) FSC certified?

      The company is currently disassociated from the FSC however it made a commitment to become 100% FSC certified by 2024 and the company is currently working on the Roadmap of reassociation

  • Smallholders and suppliers Smallholders and suppliers
    2.75 / 10 27.5%
    • Organisation: 1 / 1 100%
    • Policy: 1 / 4 25%
    • Practice: 0.8 / 5 15%
    • Self-reported: 0.8 / 5 15%
    • External: 0 / 5 0%
    • Y
      1 / 1

      104. Commitment to support smallholders?

    • 105. Programme to support scheme smallholders / outgrowers?

      This indicator is disabled as the company has informed ZSL that it does not source from scheme smallholders/outgrowers

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

      This indicator is disabled as the company has informed ZSL that it does not source from scheme smallholders/outgrowers

    • P
      0.75 / 1

      107. Programme to support independent smallholders?

      The company provides seeds, training in good agricultural practices and access to markets

    • N
      0 / 1
      Source

      108. Percentage of independent smallholders involved in programme?

    • Y
      1 / 1

      109. 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 and plans to increase the amount sourced from smallholders to 105,000 tons by 2020

    • N
      0 / 1

      110. Percentage of supply coming from agroforestry?

      The company has some agroforestry operations in its own operations however no information on the percentage of supply coming from these estates were found

    • N
      0 / 1
      Source

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

    • N
      0 / 1
      Source

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

    • N
      0 / 1
      Source

      113. Suspension or exclusion criteria for non-smallholder suppliers?

    • N
      0 / 1
      Source

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

    • N
      0 / 1
      Source

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

  • Governance and grievances Governance and grievances
    1.75 / 5 35%
    • Organisation: 0 / 0 0%
    • Policy: 1 / 3 33.3%
    • Practice: 0.8 / 2 37.5%
    • Self-reported: 0.8 / 2 37.5%
    • External: 0 / 2 0%
    • P
      0.5 / 1

      116. Commitment to ethical conduct and prohibition of corruption?

      The company only mentions anti-corruption

    • P
      0.75 / 1

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

    • N
      0 / 1
      Source

      118. Whistleblowing procedure?

    • P
      0.5 / 1

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

      The company states to have a grievance system however limited details are provided on the process and it is unclear if the system is accessible for external stakeholders

    • N
      0 / 1
      Source

      120. Details of complaints and grievances disclosed?

Media monitor: Vietnam Rubber Group (VRG)

SPOTT gathers reports and stories from global media sources, covering specific company activities related to the assessment indicator categories. ZSL does not assess the validity of these reports.

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Scoring criteria: Vietnam Rubber Group (VRG)

Scoring criteria guide how ZSL conducts SPOTT assessments and allocates scores to ensure a fair and consistent approach, setting the expectations for companies on how they should publish ESG data. The full natural rubber indicator framework contains 120 indicators across 10 categories.

SPOTT is a ZSL initiative.
Zoological Society of London (ZSL)