Porsche has announced that it will be partnering with Michelin and investing $1.1 million to improve rubber farming sustainability in Sumatra, Indonesia. The project will run into 2024.
Michelin began the “Committed Actions for Smallholders Capacity Development” or CASCADE project back in 2020 and now Porsche is joining the effort to improve sustainability. As a global leader in rubber consumption, Michelin has been pushing for more sustainable rubber production since at least 2015.
Since that time, they’ve developed a more in-depth understanding of how the supply chain flows and they’re working to stabilize it. At the same time, those efforts can serve to make production more sustainable and efficient for the rubber farmers themselves.
Now, Porsche is joining forces with Michelin to further those efforts. “For Porsche, responsibility begins a long way from the factory gates. We take a holistic approach to sustainability. Our supply chain and the extraction of raw materials are important factors here,” Barbara Frenkel, Member of the Executive Board for Procurement at Porsche AG stated.
“We take responsibility for our impact on the rubber extraction regions in Indonesia. We want to improve people’s lives through projects conducted in the region. Smallholders form the heart of a sustainable supply chain for natural rubber. That’s why we are supporting them to achieve a decent standard of living while adhering to good environmental and social practices,” Frenkel added.
Michelin and Porsche actually designed and implemented multiple tools to get a better understanding of the supply chain including direct conversations with the smallholder farmers and even a mobile app. Now, the farmers at the very start of production will benefit.
The efforts these companies are putting in will ultimately result in at least 1,000 smallholders being trained at a local level to improve efficiency while also prioritizing sustainability. If the investment pays off everybody wins.
The smallholders will be capable of producing more while also reducing their environmental impact. Michelin and Porsche will see a steadier supply chain that isn’t subject to the same volatility that they experienced in the past.