Below is a comprehensive, industry-grade framework for Ethical Sourcing, Fair Labor, FPIC, and Traceability Systems specifically designed for Agarwood (Aquilaria) plantations, cooperatives, extraction facilities, and export operations.
This aligns with:
- RA 8371 (IPRA Law) for FPIC
- ILO Core Labor Standards
- CITES chain-of-custody rules
- EU Deforestation Regulation (EUDR)
- ISO 14064, 18788, and sustainable forestry standards
- Middle East buyer requirements for ethical sourcing
- Philippine DENR directives (Wildlife, EMB, Forestry)
🌱 1. ETHICAL SOURCING FRAMEWORK (Agarwood Value Chain)
Ethical sourcing ensures that all Aquilaria resources are:
✔ legally obtained
✔ environmentally sustainable
✔ socially responsible
✔ traceable from seed to export
1.1. Legal & Environmental Sourcing
A plantation or supplier must demonstrate:
- DENR plantation registration (CENRO/PENRO)
- ECC/CNC compliance
- Harvest permits & WLTP
- CITES source code: C (cultivated)
- Zero illegal wild-sourcing
Key Policy:
🔥 ABSOLUTELY no wild harvesting.
All materials must be plantation-grown.
1.2. Sustainable Agronomic Practices
Your operations should include:
- Agroforestry systems (mixed species, N-fixing trees)
- Soil conservation, contour planting
- Organic fertilization (COFI products)
- FSC-aligned pruning and thinning
- Zero-burning policy
- Biodiversity conservation buffer zones
1.3. Ethical Resin Induction
Resin induction must:
- Avoid destructive drilling
- Meet animal cruelty-free standards
- Follow COPI protocols for biotechnology-based induction (FusaTrinity™ allowed)
- Minimize tree mortality
1.4. Community & Farmer Equity Model
Include:
- Shared revenue programs (40/60 or 70/30 models)
- Transparent pricing
- No unfair buying practices
- Guaranteed buyback arrangements
- Farmer capacity-building programs (AGAC)
👷 2. FAIR LABOR PRACTICES
Aligned with:
- ILO Convention 29, 87, 98, 138, 182
- DOLE labor standards
- CSR and ESG frameworks
2.1. Labor Rights Guaranteed
✔ No child labor
Minimum age = 18 for field operations.
✔ No forced labor
Workers sign voluntary contracts.
✔ Freedom of association
Cooperative or union membership permitted.
✔ Fair compensation
At least minimum wage, PLUS:
- hazard pay for field operations
- overtime pay
- social protection (SSS, PhilHealth, Pag-IBIG)
✔ Decent working conditions
- PPE for cutting, drilling, inoculation
- Safe chemical handling
- First-aid kits and trained responders
- Drinking water and shaded rest areas
2.2. Gender Equality & Inclusion
- No discrimination in hiring
- Women allowed in nursery propagation, packing, extraction
- Equal pay for equal work
2.3. Ethical Recruitment
- No recruitment fees
- Clear contracts
- Transparent onboarding
🛖 3. FPIC (FREE, PRIOR & INFORMED CONSENT)
FPIC applies if the project area or sourcing area affects:
- Indigenous Peoples (IPs)
- ancestral domains (CADT/CALT)
- communities relying on NTFPs
Legal basis: RA 8371 (IPRA Law)
Oversight: NCIP
3.1. FPIC Process (NCIP-compliant)
Step 1 — Project Identification & Scoping
- Identify if land overlaps with CADT/CALT
- Submit intent letter to NCIP
Step 2 — Community Orientation
You must explain:
- Project nature
- Benefits & risks
- Environmental impacts
- Labor needs
- Revenue sharing
- Long-term commitments
Step 3 — Community Decision-Making
- Majority consensus required
- Must follow IP customary laws
Step 4 — Negotiation & MOA
FPIC MOA includes:
- Royalty %
- Employment opportunities
- Environmental safeguards
- Conflict resolution mechanisms
- Monitoring arrangements
Step 5 — Implementation & Monitoring
NCIP and community monitors your compliance.
🔗 4. TRACEABILITY SYSTEMS (End-to-End)
Traceability ensures proof of:
- legal origin
- sustainability
- ethical sourcing
- correct species identification
- batch-level tracking
4.1. Traceability Architecture
Your system should track:
- Seed provenance
- Nursery stage
- Plantation inventory
- Resin induction batches
- Harvest batches
- Extraction batches
- CITES documentation
- Export documentation
- Buyer-level tracking
4.2. Tools & Technologies
Choose any or combine:
✔ QR-coded tree tags
Used for:
- Individual Aquilaria tree records
- Age, inoculation date, harvest date
✔ Digital Farm Logbook
(Excel, Google Sheets, or farm app)
✔ Cloud-based Blockchain Traceability
Optional but impressive for investors:
- Immutable ledgers
- Tree-to-oil traceability
- Smart contract certification
✔ AI-based image validation
Tree monitoring via timestamped photos.
✔ GPS + GIS mapping
Shows exact planting site (mandatory for CITES audits).
4.3. Required Data per Tree
Each Aquilaria tree should have:
- Tree ID number
- Coordinates
- Planting date
- Parent stock lineage
- Inoculation history (fungal strain, date, worker name)
- Harvest date
- Yield (kg chips, oil volume)
4.4. Batch-Level Traceability for Oil
For every distilled or SC-CO₂ oil batch:
- Batch #
- Weight of raw material used
- Extraction log
- GC-MS/FTIR results
- Storage lot number
- CITES permit # associated
4.5. Chain-of-Custody for Export
You must document:
- Farm → transport → warehouse → extraction → packing → port
- Use WLTP (DENR) for each transport
- Attach CITES permit to final export batch
📜 5. Certifications & Compliance to Strengthen Market Access
Optional but recommended:
5.1. ESG Certification
Aligns your brand with global sustainable markets.
5.2. ISO Certifications
- ISO 14001 (environmental management)
- ISO 45001 (occupational health & safety)
- ISO 22095 (chain-of-custody)
5.3. Fair Trade Certification
If working with farmers or IP communities.
5.4. FSC (Forest Stewardship Council) – Non-timber Forest Product Addendum
For plantation-grown agarwood.
🧭 6. What I Can Prepare for You Next
I can prepare:
📌 Ethical Sourcing Policy (ready for publication)
📌 Fair Labor Standards Manual (for farm & extraction workers)
📌 FPIC Process Guide + Forms
📌 Agarwood Traceability SOP Manual
📌 Tree Tagging System (QR-code database template)
📌 Producer Certificates for export buyers (ethical sourcing proof)
📌 Compliance templates for CREDI, CAPI, CESI, COPI, AGAC, COFI
Just tell me which ones you want generated.