Report No.: R9315/18-1 Kuala Lumpur Kepong Berhad, Changkat Chermin Grouping Page 1 of 94 Re-certification (Transfer CB) Kuala Lumpur Kepong Berhad RSPO Membership No: 1-0014-04-000-00 PLANTATION MANAGEMENT UNIT Changkat Chermin Grouping Ayer Tawar, Perak, Malaysia INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W) Report No.: R9315/18-1 Kuala Lumpur Kepong Berhad, Changkat Chermin Grouping Page 2 of 94 Re-certification (Transfer CB) RE-CERTIFICATION ASSESSMENT PUBLIC SUMMARY REPORT KUALA LUMPUR KEPONG BERHAD RSPO Membership No: 1-0014-04-000-00 PLANTATION MANAGEMENT UNIT Changkat Chermin Grouping Ayer Tawar, Perak, Malaysia Certificate No: RSPO 931588 Issue Date (Re-Cert): 10 Sep 2018 Expiry date: 09 Sep 2023 Assessment Type Assessment Dates Re-Certification Assessment (Transfer CB) 21–25 May 2018 Annual Surveillance Assessment (ASA-01) Annual Surveillance Assessment (ASA-02) Annual Surveillance Assessment (ASA-03) Annual Surveillance Assessment (ASA-04) Intertek Certification International Sdn Bhd D-28-3, Level 28, Menara Suezcap 1, No. 2, Jalan Kerinchi, Gerbang Kerinchi Lestari, 59200 Kuala Lumpur, Malaysia. Tel: +00 (603) 7931 0032 Fax: +00 (603) 7931 0419 Email: [email protected] Website: www.intertek.com INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W) Report No.: R9315/18-1 Kuala Lumpur Kepong Berhad, Changkat Chermin Grouping Page 3 of 94 Re-certification (Transfer CB) TABLE OF CONTENTS Section Content Page No 1.0 SCOPE OF ASSESSMENT 4 1.1 Introduction 4 1.2 Location (address, GPS and map) mill, estates and hectarage 4 1.3 Description of supply base (fruit sources) 5 1.4 Year of plantings and cycle 5-8 1.5 Summary of Land Use – Conservation and HCV Areas 9 1.6 Other certifications held and Use of RSPO Trademarks 9 1.7 Organizational information/contact person 9 1.8 Tonnages Verified for Certification 10 1.9 Time Bound Plan and Multiple Management Units 11 1.10 Abbreviations Used 12 2.0 ASSESSMENT PROCESS 13 2.1 Assessment Methodology, Plan & Site Visits 13 2.2 Date of next scheduled visit 13 2.3 Qualifications of the Lead Assessor and Assessment Team 13 2.4 Certification Body 13 2.5 Process of Stakeholder consultation 14-15 3.0 ASSESSMENT FINDINGS 16 3.1 Summary of findings 16-52 3.2 Status of Identified Noncompliance and Corrective Actions, Observations 52-59 and Identified Positive Elements 3.3 Summary of Feedback Received from Stakeholders and Findings 59-61 4.0 ASSESSMENT CONCLUSION AND RECOMMENDATION 62 4.1 Acknowledgement of Internal Responsibility and Confirmation of Assessment 62 Findings 4.2 Intertek RSPO Certification Details for the PMU 63-64 APPENDICES Appendix A Qualifications of the Lead Assessor and Assessment Team 65 Appendix B Assessment Plan 66-68 Appendix C Maps of location – Mill and Estates 69-84 Appendix D Photographs at the PMU 85 Appendix E Time Bound Plan 86-94 INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W) Report No.: R9315/18-1 Kuala Lumpur Kepong Berhad, Changkat Chermin Grouping Page 4 of 94 Re-certification (Transfer CB) 1.0 SCOPE OF ASSESSMENT 1.1 Introduction This Re-certification Assessment was conducted on the Plantation Management Unit (PMU) Changkat Chermin Grouping of Kuala Lumpur Kepong Berhad (hereafter abbreviated as KLK), on 21-25 May 2018, to assess the organization’s operations of the mill and its supply bases for compliance against the RSPO Principles and Criteria (Apr 2013), Malaysian National Interpretation (MYNI 2014) and the RSPO Supply Chain Certification Standard (Jun 2017) for the Palm Oil Mill. The plantation management unit (PMU) or management unit is equivalent to a certification unit as defined in the RSPO Certification Systems Document. Each PMU consists of one mill and its supply bases which are made up of estates owned and/or managed by KLK. 1.2 Location (address, GPS and map) of palm oil mill and estates The Changkat Chermin Grouping consists of one (1) palm oil mill, namely Changkat Chermin Palm Oil Mill and eleven (11) estates as indicated in Table 1 below, which includes the addresses and GPS locations of the mill and estates. The location maps are provided in Appendix C. Table 1: Address of Palm Oil Mill, Estates and GPS Location GPS Reference No. Name of Mill / Estates Address Latitude Longitude Changkat Chermin Palm Oil Mill Batu 13½, 32400 Ayer Tawar, Perak, Malaysia N 4°16’29.7’’ E 100°47’5.9’’ (Capacity: 60 MT/hour) 1 Changkat Chermin Estate Batu 13½, 32400 Ayer Tawar, Perak, Malaysia N 4°18’16’’ E 100°47’48’’ 2 Lekir Estate Batu 12 Lekir, 32020 Sitiawan, Perak, Malaysia N 4°7’12’’ E 100°46’47’’ Bt 18, Kg Jering, 32400 Ayer Tawar, Perak, 3 Raja Hitam Estate N 4°21’2’’ E 100°46’25’’ Malaysia Jalan Seputeh – Batu Hampar, 32800 Parit, Perak, 4 Glenealy Estate N 4°27’31’’ E 100°55’50’’ Malaysia 5 Allagar Estate Ladang Allagar, 34800 Trong, Perak, Malaysia N 4°35’57’’ E 100°44’8’’ 6 Serapoh Estate Ladang Serapoh, 32800 Parit, Perak, Malaysia N 4°31’15’’ E 100°53’30’’ Ladang Kuala Kangsar, 33700 Padang Rengas, 7 Kuala Kangsar Estate N 4°46’0.32’’ E 100°51’0.16’’ Perak, Malaysia 8 Pinji Estate Ladang Pinji, 31500 Lahat, Perak, Malaysia N 4°30’12’’ E 101°5’19’’ Ladang Batu Dua, P.O. Box 1027, 30820 Ipoh, 9 Batu Dua Estate N 4°28’43.5’’ E 101°4’29.3’’ Perak, Malaysia Ladang Menglembu, P.O. Box 1027, 30820 Ipoh, 10 Menglembu Estate N 4°33’43.956’’ E 101°2’23.82’’ Perak, Malaysia Ladang Kampar, Peti Surat 20, 31907 Kampar, 11 Kampar Estate N 4°16’8.492’’ E 101°6’34.233’’ Perak, Malaysia INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W) Report No.: R9315/18-1 Kuala Lumpur Kepong Berhad, Changkat Chermin Grouping Page 5 of 94 Re-certification (Transfer CB) 1.3 Description of supply base (fruit sources) The supply base i.e. FFB sources to the POM at Changkat Chermin Grouping PMU are currently from the abovementioned estates of this PMU and other certified KLK Groupings estates. The FFB from the PMU estates and other certified KLK Groupings estates are certified FFB. There are no FFB from Outside Crop Producers (OCP), which are considered as non-certified FFB. Details of the planted hectarage for the FFB supply to the PMU are as shown in Table 2 below. Table 2: Estate Area Summary Area Summary (ha) Area Summary (ha) No. Estate (Year 2016) (Jan - Dec 2017) Certified Area Planted Area Certified Area Planted Area 1 Changkat Chermin Estate 2,530 2,488 2,530 2,488 2 Lekir Estate 3,311 3,266 3,311 3,266 3 Raja Hitam Estate 1,497 1,445 1,497 1,445 4 Glenealy Estate 1,059 798 1,059 828 5 Allagar Estate 805 776 773 746 6 Serapoh Estate 936 715 936 715 7 Kuala Kangsar Estate 1340 701 1340 701 8 Pinji Estate 790 630 790 667 9 Batu Dua Estate 158 134 158 150 10 Menglembu Estate 266 42 266 42 11 Kampar Estate 754 705 754 705 Total: 13,446 11,700 13,414 11,753 Note: This Assessment covered the overall land use for oil palm plantation areas, and the identified Conservation / unplantable areas including HCV (if any) marked out at the estates. 1.4 Summary of plantings and cycle The age profile of the planted oil palms is as shown in Table 3. Table 3: Age Profile of Planted Oil Palms (Year 2017) * Mature OP Total (ha) Year of Cycle of Immature OP (ha) Estate Name (ha) – Above 3 Planting Planting – 3 years & below years Changkat Chermin Estate 2001 2nd 48 - 48 2005 2nd 440 - 440 2006 2nd 460 - 460 2007 2nd 486 - 486 2009 2nd 276 - 276 2010 2nd 306 - 306 2011 2nd 263 - 263 2013 2nd 209 - 209 INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W) Report No.: R9315/18-1 Kuala Lumpur Kepong Berhad, Changkat Chermin Grouping Page 6 of 94 Re-certification (Transfer CB) Lekir Estate 1999 1st 57 - 57 2001 1st 328 - 328 2002 1st 878 - 878 2003 1st 173 - 173 2004 1st 206 - 206 2008 2nd 8 - 8 2009 2nd 290 - 290 2011 2nd 256 - 256 2012 2nd 201 - 201 2014 2nd 325 - 325 2016 2nd - 150 150 2017 2nd - 166 166 2018 2nd - 228 228 Raja Hitam Estate 2002 2nd 249 - 249 2003 2nd 192 - 192 2004 2nd 400 - 400 2006 2nd 250 - 250 2007 2nd 354 - 354 Glenealy Estate 1992 1st 20 - 20 1994 1st 44 - 44 1995 1st 21 - 21 1996 1st 10 - 10 1999 1st 39 - 39 2001 1st 97 - 97 2002 1st 96 - 96 2005 1st 34 - 34 2006 1st 46 - 46 2011 1st 19 - 19 2012 1st 40 - 40 2014 1st 35 - 35 2015 1st - 96 96 2016 1st - 108 108 2017 1st - 123 123 Allagar Estate 1997 2nd 19 - 19 1998 2nd 121 - 121 1999 2nd 49 - 49 2000 2nd 65 - 65 INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W) Report No.: R9315/18-1 Kuala Lumpur Kepong Berhad, Changkat Chermin Grouping Page 7 of 94 Re-certification (Transfer CB) 2001 2nd 26 - 26 2002 2nd 34 - 34 2003 2nd 46 - 46 2004 2nd 76 - 76 2005 2nd 44 - 44 2007 2nd 65 - 65 2008 2nd 69 - 69 2010 3rd 36 - 36 2012 3rd 60 - 60 2016 3rd - 36 36 Serapoh Estate 1996 1st 40 - 40 1997 1st 15 - 15 1998 1st 32 - 32 1999 1st 84 - 84 2000 1st 28 - 28 2001 1st 91 - 91 2002 1st 79 - 79 2003 1st 89 - 89 2004 1st 76 - 76 2007 1st 73 - 73 2008 1st 15 - 15 2009 1st 27 - 27 2011 1st 16 - 16 2014 1st - 50 50 Kuala Kangsar Estate 1997 2nd 43 - 43 1999 2nd 29 - 29 2000 2nd 53 - 53 2001 2nd 65 - 65 2002 2nd 104 - 104 2003 2nd 131 - 131 2004 2nd 87 - 87 2005 2nd 51 - 51 2006 2nd 39 - 39 2010 2nd 19 - 19 2013 2nd 37 - 37 2014 2nd 43 - 43 Pinji Estate 1993 1st 6 - 6 INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W) Report No.: R9315/18-1 Kuala Lumpur Kepong Berhad, Changkat Chermin Grouping Page 8 of 94 Re-certification (Transfer CB) 1996 1st 12 - 12 1998 1st 81 - 81 1999 1st 32 - 32 2000 2nd 79 - 79 2001 2nd 140 - 140 2006 2nd 40 - 40 2011 2nd 28 - 28 2012 2nd 4 - 4 2014 2nd 38 - 38 2015 2nd - 53 53 2016 2nd - 54 54 2017 2nd - 100 100 Batu Dua Estate 2000 1st 43 - 43 2003 1st 46 -