Sri Trang Group Sets Standard for Sustainable Integrated Rubber Supply Chain

Singapore, 28 November 2022 – The future of the environment depends on the collective efforts of corporates and consumers. This was the key message of Mr. Edathil Jayakrishnan, Chief Operating Officer, Sri Trang Rubber Plantation, at the Forest Stewardship Council (“FSC”) Asia Pacific Business Forum 2022, a keystone business event organised by the FSC to promote responsible forest management globally and uphold the highest standards in responsible forestry.

Themed “Connecting Forests with Markets”, the forum featured a series of dialogue sessions with industry experts who shared their insights on sustainable rubber sourcing and production and green forest value chains. As a panelist, Mr. Jayakrishnan presented his view on the long-term benefits of investing in a sustainable rubber supply chain. Responsible sourcing, he said, involves a strong focus on integrating economic, social and environmental sustainability throughout the entire supply chain and operating workflows from forests to consumers. And this is what the world’s major customers like Michelin, IKEA and others in Europe, the USA and Japan, are increasingly looking for in their suppliers. For companies that meet the international standard of sustainability, the returns can be attractive as customers are willing to pay a higher price for assurance of long-term supply.

Sri Trang Gloves (Thailand) Public Company Limited (“the Company”), received the FSC COC (Chain-of-Custody) Certification for its rubber gloves, latex concentration plant, latex collection point and rubber plantation in Hat Yai in 2019, which testifies to the company’s ability to balance economic, social and environmental sustainability from raw material management to manufacturing and packaging of the products for end-consumers. As one of the world’s first fully integrated glove manufacturers to be certified FSC for its entire supply chain for both its upstream and downstream processes, the Company hopes to revolutionise the medical rubber gloves industry by producing truly sustainable products that effectively protect both users and the environment.

Ms. Thanravee Thanonworaphong, Sustainability Manager of Sri Trang Group (“the Group”), who was also a dialogue panelist, explained the rationale behind its commitment to sustainability. Sri Trang Group’s sustainability effort, she said, is guided by its core “4 Green” strategy, namely, i) Green Business, which focuses on adopting environmentally friendly innovations to ensure sustainable business growth, ii) Production, which emphasises the operational and safety enhancement through efficient resource use, iii) Greenovative Experience, which focuses green innovation to cultivate a sustainable environment , and iv) Green Society, which initiates projects that seek to promote the well-being and betterment of society. Ms. Thanonworaphong believes that companies that execute the strategy successfully will be able to reduce their operational costs while commanding a higher price for their products, protecting biodiversity and preventing deforestation. This should translate to better top and bottom lines over the long haul.

The commitment to sustainability is thus not just in one area of operations. Apart from Sri Trang Gloves’ FSC COC certification, Sri Trang Group’s block rubber facility in Phitsanulok, Thailand, also received its certification for compliance with FSC standards this year. Along with this, more than 60%, or 4,422 hectares, of the Group’s plantations are FSC-certified for Forest Management, making Sri Trang Group the first rubber company in the world to be FSC certified for both upstream and downstream processes. Even as it continues its push towards 100% FSC certification for its plantations and operations, Sri Trang Group hopes that its efforts will inspire rubber plantation owners and other players in the rubber industry to recognise the importance of the FSC certification in increasing the value of their plantations and products, and thereby work towards raising the collective standard of sustainable production.