Continental Expands Commitment to Sustainable Natural Rubber Sourcing, Extends Successful Project in Indonesia
Continental Expands Commitment to Sustainable Natural Rubber Sourcing, Extends Successful Project in Indonesia

Continental Expands Commitment to Sustainable Natural Rubber Sourcing, Extends Successful Project in Indonesia

  • 17-Apr-2025 5:45 PM
  • Journalist: Robert Hume

Leading tire manufacturer Continental has announced the extension of its impactful project focused on enhancing sustainability in smallholder natural rubber cultivation in Indonesia. Partnering with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, Continental is building upon the success of its initiative in West Kalimantan, Borneo, and aims to involve an additional 1,000 smallholders by 2027.

Launched in 2018, the project has already positively impacted the lives of around 5,000 local smallholders by equipping them with the knowledge and skills to cultivate high-quality natural rubber adhering to stringent sustainability criteria. The extension is co-funded by Continental and the German Federal Ministry for Economic Cooperation and Development (BMZ).

The collaborative project in the Kapuas Hulu district, adjacent to a UNESCO biosphere reserve, directly addresses critical challenges faced by natural rubber farmers, namely a lack of sustainable farming knowledge and insufficient income. Through comprehensive training programs, Continental and GIZ empower farmers with sustainable cultivation methods and improved agricultural practices. This not only enhances the quality and yield of the rubber but also optimizes the supply chain, leading to a significant average income increase of 27% for participating smallholders since the project's inception.

Michael Radke, Head of Sustainability in Purchasing at Continental, emphasized the company's responsibility, stating, "As one of the largest tire manufacturers in the world, we have a particular responsibility in the natural rubber supply chain. That is why we are committed at all levels and are building capacity locally." He further highlighted the tangible benefits achieved, noting, "Over the past few years, together with GIZ, we have shown that we can make the natural rubber supply chain transparent and at the same time increase farmers’ incomes. Now we want to reach even more smallholders and create the framework conditions for the successes achieved to be sustained."

Beyond economic benefits, the initiative places a strong emphasis on environmental stewardship. The project actively promotes the maintenance and restoration of biodiversity within the region, contributing to the preservation of precious forests and peatlands in Indonesia. Furthermore, the introduction of a digital traceability system ensures end-to-end transparency throughout the natural rubber supply chain, from the rubber tree to its integration into Continental's production processes.

Continental's commitment extends beyond its own operations. The responsibly sourced natural rubber produced through this project is also made available to other manufacturers, and the initiative is open to additional participants. This collaborative approach aims to foster broader adoption of sustainable practices within the natural rubber industry, contributing to the protection of human rights, minimization of environmental impacts, and improvement of living conditions for local communities.

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