A. Project Context
Sponsor
CEO, BFC
Manager
Community Relations Lead
Participating Organisations
Borneo Forest Carbon Sdn Bhd, Sarawak Forestry Corporation
Asset / Location
Jungle Green
Reason for Action
Establish permanent recognition and benefit-sharing arrangement with Penan and Kenyah communities holding NCR claims within concession
B. Baseline
Current Situation
NCR mapping partially complete; benefit-sharing agreement in draft; community trust historically low
Baseline Date
2024-11-01
Baseline Metrics
Percentage of NCR area mapped, number of signed agreements
Data Quality
measured
Counterfactual
Without a robust permanent control, project risks legal challenge and carbon credit integrity loss
C. Objectives
Intended Change
Fully signed, monitored and reported benefit-sharing agreement with independent grievance mechanism
Target
100% of identified NCR areas covered by signed agreement
Target Date
2026-03-31
Affected Stakeholders
Penan community, Kenyah community
Expected Benefits
Secures carbon credit integrity, strengthens community relations, reduces legal risk
D. Options
Alternatives Considered
Concession boundary exclusion of contested areas (rejected - reduces carbon project viability), full benefit-sharing agreement (selected)
Do-Nothing Case
Continued legal uncertainty and risk to carbon credit buyers
Reason Selected
Benefit-sharing preserves project viability while respecting indigenous rights
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 payments reduce net carbon revenue; assessed as essential for credit integrity and rights compliance
F. Safeguards
Rights & Stakeholder Impacts
Full FPIC and benefit-sharing per IFC PS7, UNGP and Verra CCB requirements
Environmental Impacts
Supports continued forest protection
Community Impacts
Directly improves community livelihoods and rights recognition
Mitigation Measures
Independent facilitator and legal counsel engaged
Grievance Requirements
New accessible grievance mechanism being rolled out under related project
G. Business Case
Capital Cost
RM 480,000
Operating Cost
RM 220,000
Savings
—
Revenue
RM 1,800,000
Avoided Cost
—
Funding Source
BFC carbon revenue and Group ESG fund
Risk Reduction
Removes carbon credit integrity and legal risk that could invalidate credits
Strategic Value
Establishes reusable NCR engagement methodology across Group forestry and plantation assets
H, I, J. Measurement, Evidence & Governance
See linked Metrics, Evidence, Stage Gates and Governance in the Project Workspace tab.
Go to Project Workspace