A. Project Context
Sponsor
Managing Director, TWP
Manager
Community Relations Lead
Participating Organisations
Tradewinds Plantations Bhd
Asset / Location
Kuantan Oil Palm & Rice Estate
Reason for Action
Establish permanent, ongoing process for managing customary land claims and FPIC in line with IFC PS7 and UNGP
B. Baseline
Current Situation
Partial FPIC process completed for original estate boundary; overlap claims by Orang Asli Batin community unresolved
Baseline Date
2025-02-01
Baseline Metrics
Number of unresolved claims, grievance count
Data Quality
measured
Counterfactual
Without a permanent control, unresolved claims risk recurring disputes and legal exposure
C. Objectives
Intended Change
Fully documented FPIC process and benefit-sharing agreement operating on an ongoing basis
Target
Zero unresolved legacy claims; FPIC process certified annually
Target Date
2026-06-30
Affected Stakeholders
Orang Asli Batin community, estate workforce
Expected Benefits
Reduced legal and reputational risk, improved community relations, secure licence to operate
D. Options
Alternatives Considered
One-off settlement only (rejected - does not address ongoing risk), permanent FPIC control framework (selected)
Do-Nothing Case
Recurring disputes and potential land conflict escalation
Reason Selected
A permanent control is required because this is an ongoing obligation, not a one-time fix
E. Cross-Pillar Effects Review Reviewed
Could solving this problem create a different environmental, social or governance problem?
Potential Trade-offs / Unintended Consequences
Benefit-sharing costs affect estate profitability; assessed as necessary cost of maintaining licence to operate
F. Safeguards
Rights & Stakeholder Impacts
Full FPIC process per IFC PS7 and UNGP
Environmental Impacts
No material additional environmental impact
Community Impacts
Direct positive impact via benefit-sharing agreement
Mitigation Measures
Independent facilitator engaged for negotiations
Grievance Requirements
Dedicated grievance channel established for this community
G. Business Case
Capital Cost
RM 350,000
Operating Cost
RM 180,000
Savings
—
Revenue
—
Avoided Cost
—
Funding Source
TWP operating budget
Risk Reduction
Removes significant legal and licence-to-operate risk
Strategic Value
Establishes reusable FPIC methodology for other Group land-based assets
H, I, J. Measurement, Evidence & Governance
See linked Metrics, Evidence, Stage Gates and Governance in the Project Workspace tab.
Go to Project Workspace