Drivers willing to pay premium for more sustainable tyre production, finds Kwik Fit
Kwik Fit is making more tyres available that support sustainable natural rubber production, helping to protect the rainforests of Indonesia.
Project Tree uses blockchain technology to support farmers and improve the traceability of natural rubber
It follows a successful pilot that saw many customers purchase a selection of Pirelli UK tyres helping to fund the Project Tree sustainability programme in Sumatra for a “small” cost premium.
The initial experience with the project has shown that car owners have chosen to support more sustainable production through their buying decisions and have been willing to pay a modest premium for these tyres.
The project has now been widened to include tyres from Hankook and Continental.
Under the scheme, a portion of the purchase price of each supported tyre is allocated to the farmers supported by the programme. In the four-month pilot phase, Kwik Fit saw sales of Pirelli Project Tree tyres exceed expectations, in spite of the premium.
With the addition of ranges from Hankook and Continental, Kwik Fit expects to sell over 150,000 Project Tree tyres this year.
The initiative aims to help meet the demand for natural rubber through sustainable and ethical methods. The supply of natural rubber used in tyres, among many other applications, relies on thousands of farmers who tap the rubber trees on their small holdings and sell the raw latex to collectors, dealers and processors.
Historically, increases in demand for natural rubber production have led to communities clearing land, in some cases illegally, in order to plant new rubber trees.
The project encourages sustainable practices, using a proprietary traceability system which uses blockchain technology to track and inspect the supply chain. This software is designed to help prevent rubber entering the system from inside the conservation area, while at the same time protecting the livelihoods of the smallholders dependent on rubber for their family’s income.
The project has been developed by Itochu, Kwik Fit’s ultimate parent company, through its rubber producing subsidiary, PT. Aneka Bumi Pratama (ABP).
Mark Slade, managing director of Kwik Fit, said: “An ever-growing proportion of consumers are interested in the provenance of the products they buy and by highlighting Project Tree in our centres and online, we can help raise awareness of the whole production process and the impact drivers can make with their choices.
“Our long-term ambition is for the vast majority, if not all, the tyres we sell to be supported by Project Tree or an equally robust equivalent scheme.”