Conti taps HeveaConnect for sustainable rubber purchasing

Hanover, Germany - Continental is to handle part of its natural rubber (NR) purchasing activity via the HeveaConnect platform, the Hanover-based group has announced.

The HeveaConnect digital trading platform is designed to ensure greater transparency and sustainability in the NR supply chain, noted the German group’s 16 Dec statement.

The move is part of Continental's drive to procure all materials from responsible sources, with particular focus on digitalisation, said Dr. Andrea Appel, head of purchasing at the group's Tires business area.

By 2050, Continental aims to use 100% sustainably produced materials in its tire products and achieve complete climate neutrality along its entire value chain.

As a founding member of the Global Platform for Sustainable Natural Rubber (GPSNR), the group is also actively promoting solutions for better traceability together with partners. 

"HeveaConnect shows how digital platforms enable solid analyses of complex supply chains as well as their targeted management," explained Appel. 

"Ecological, social and financial risks are made equally transparent for all market participants. Targeted additional offers provide attractive incentives for producers to act sustainably," she added.

HeveaConnect is set up to validate important aspects of a sustainable supply-chain and ensure compliance. As well as average selling prices, its dashboards display standardised information on quality, traceability and compliance with social and environmental standards. 

Continental also noted that the platform can display offers from rubber suppliers in real-time, compare and negotiate them, conclude short- or long-term supply contracts and document them electronically.

"Consulting services with special conditions that demonstrably adhere to certain minimum standards are made available to natural rubber producers via HeveaConnect," Continental added. 

For example, it stated, it is possible to integrate information on the platform that results from risk analyses carried out by Rubberway - a joint venture between Continental and Michelin.

That analyses entire supply chains in the NR sector according to a points system, and thus assesses sustainability risks for suppliers and their subcontractors.

"Through the engagement of Continental and other industry players on our trading platform, we are one step closer to creating data-backed physical indices," said Gerald Tan, CEO of HeveaConnect.

"With the help of the Singapore Exchange, we thus aim to complement the SICOM benchmark, the global price index for natural rubber, with an index with greater price granularity,” added Tan.