FELDA GLOBAL VENTURES PLANTATIONS (MALAYSIA) SDN BHD
RSPO Membership No: 1-0013-04-000-00
PLANTATION MANAGEMENT UNIT KKS MEMPAGA GROUPING KARAK, PAHANG DARUL MAKMUR, MALAYSIA
INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
Report No.: R9301/14-1 Felda Global Ventures Plantations (Malaysia) Sdn Bhd Page 2 of 71 KKS MEMPAGA GROUPING - MAIN ASSESMENT
MAIN ASSESSMENT REPORT ON RSPO CERTIFICATION
FELDA GLOBAL VENTURES PLANTATIONS (MALAYSIA) SDN BHD (358158-V)
RSPO Membership No: 1-0013-04-000-00
PLANTATION MANAGEMENT UNIT
KKS MEMPAGA GROUPING KARAK, PAHANG DARUL MAKMUR, MALAYSIA
Certificate No: RSPO 930188 Issued date: Pending Certification decision Expiry date: Pending Certification decision
Assessment Type Assessment Dates Initial Certification (Main Assessment) 29 September to 2 October 2014 On-Site Verification Audit (Main Assessment) 10 December 2014 Annual Surveillance Assessment (ASA-01) Annual Surveillance Assessment (ASA-02) Annual Surveillance Assessment (ASA-03) Annual Surveillance Assessment (ASA-04) Re-Certification
Intertek Certification International Sdn Bhd (formerly known as Moody International Certification (Malaysia) Sdn Bhd) 6-L12-01, Level 12, Tower 2, Menara PGRM No. 6 & 8 Jalan Pudu Ulu, Cheras, 56100 Kuala Lumpur, Malaysia. Tel: +00 (603) 9283 9881 Fax: +00 (603) 9284 8187 Email: [email protected] Website: www.intertek.com
Intertek RSPO Report: Main Assessment: 29 Sep – 2 Oct 2014_Final edited
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TABLE OF CONTENTS
Section Content Page No 1.0 SCOPE OF MAIN 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 1.5 Summary of Land Use – Conservation and HCV Areas 6 1.6 Other certifications held and Use of RSPO Trademarks 6 1.7 Organizational information/contact person 6 1.8 Tonnages Verified for Certification 7-8 1.9 Time Bound Plan 8 1.10 Abbreviations Used 9 2.0 ASSESSMENT PROCESS 10 2.1 Assessment Methodology, Plan & Site Visits 10 2.2 Date of next scheduled visit 11 2.3 Qualifications of the Lead Assessor and Assessment Team 11 2.4 Certification Body 11 2.5 Process of Stakeholder consultation 11-12 3.0 ASSESSMENT FINDINGS 13 3.1 Summary of findings 13-45 3.2 Status of Identified Noncompliance and Corrective Actions, Observations and 45-54 Identified Positive Elements 3.3 Summary of Feedback Received from Stakeholders and Findings 55-56 4.0 ASSESSMENT CONCLUSION AND RECOMMENDATION 57 4.1 Acknowledgement of Internal Responsibility and Confirmation of Assessment Findings 57
4.2 Intertek RSPO Certification Details for KKS MEMPAGA GROUPING 58-59
APPENDICES Appendix A Qualifications of the Lead Assessor and Assessment Team 60 Appendix B Assessment Plan 61-62 Appendix C Maps of location – Mill, Estates, Conservation and HCV areas 63-69 Appendix D Photographs of Assessment findings 70 Appendix E Time Bound Plan for Other Plantation Management Units 71
Intertek RSPO Report: Main Assessment: 29 Sep – 2 Oct 2014_Final edited
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1.0 SCOPE OF MAIN ASSESSMENT
1.1 Introduction This Main Assessment was conducted on the Plantation Management Unit (PMU) at KKS Mempaga Grouping of FELDA Plantations Sdn Bhd (hereafter abbreviated as FELDA), from 29 September – 2 October 2014, to assess if the organization’s operations of the mill and its supply bases were in compliance against the RSPO Principles and Criteria (April 2013), Malaysian National Interpretation (November 2010) and the RSPO Supply Chain Certification Standard (November 2011) for Palm Oil Mill. This assessment also includes a review of the changes made by the PMU to comply with the requirements of the ratified new RSPO Principles and Criteria (effective 25 April 2013). It was found that the PMU is aware of the new RSPO Principles and Criteria and the transition period for compliance but has not yet make all the necessary changes required.
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 FELDA.
1.2 Location (address, GPS and map) of palm oil mill and estates KKS Mempaga Grouping consists of one palm oil mill, namely KKS Mempaga Palm Oil Mill and 6 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. All the 6 estates under this PMU grouping are owned by organized smallholders (Scheme Smallholders) under the Felda Settlers’ Scheme. The total number of organized individual smallholders from the estates under this PMU is 2,136. The smallholders are under the scheme management of Felda or Felda Technoplant Sdn Bhd (FTPSB) as indicated in Table 1 below. In this PMU, the smallholders may be categorized as FELDA Smallholders or FTP Smallholders. The FELDA Smallholders are those smallholders who choose to manage their own planted area within the FELDA Settlers’ Scheme. The FTP Smallholders are those smallholders who applied for their planted area to be managed by Felda Technoplant Sdn. Bhd. (FTP). Sampling of the estates has covered both the FELDA and FTP Smallholders as indicated in Table 9 (section 2.1). Table 1: Address of Palm Oil Mill, Estates and GPS Location
GPS Reference Name Address Latitude Longitude KKS Mempaga (POM) Kilang Sawit Mempaga, 28600, Karak, 3°31'38.00"N 101°58'49.00"E (Capacity: 45MT/hr) Pahang Darul Makmur, Malaysia Felda Kampung Sertik, Wakil Pos Kg. 1. FELDA Kg Sertik Sertik, 28610 Karak, Pahang Darul 3°30'08.00"N 102°01'47.00"E estate Makmur, Malaysia 2. FELDA Lakum Felda Lakum, 28500 Lanchang, Pahang 3°31'54.00"N 102°04'39.00"E estate Darul Makmur, Malaysia 3. FELDA Bukit Damar Felda Bukit Damar, 28500 Lanchang, 3°30'15.00"N 102°06'51.00"E estate Pahang Darul Makmur, Malaysia 4. FELDA Mempaga 1 Felda Mempaga 1, 28600 Karak, Pahang 3°32'14.50"N 101°57'56.80"E estate Darul Makmur, Malaysia 5. FELDA Mempaga 2 Felda Mempaga 2, 28600 Karak, Pahang 3°32'48.00"N 101°57'14.00"E estate Darul Makmur, Malaysia 6. FELDA Mempaga 3 Felda Mempaga 3, 28600 Karak, Pahang 3°32'57.00"N 101°57'50.00"E estate Darul Makmur, Malaysia
Intertek RSPO Report: Main Assessment: 29 Sep – 2 Oct 2014_Final edited
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1.3 Description of supply base (fruit sources)
The supply base i.e. FFB sources to the POM at KKS Mempaga PMU are from the above mentioned 6 estates which are owned by organized smallholders (Scheme Smallholders) under the FELDA Settlers Scheme. There were external / Outside Crop Producers (OCPs) which also supplied FFB to the POM. The FFB from the OCPs are considered as non-certified FFB in the overall assessment of the PMU (see section 1.8, Table 5). Details of the planted hectarage are as shown in Table 2 below.
Table 2: Estate Area Summary
Area Summary (ha) – Current 2014 Estate Certified Area Planted Area FELDA Kg Sertik 1,527.08 1,309.29 FELDA Lakum 1,703.93 1,618.77 FELDA Bukit Damar 1,783.47 1,745.42 FELDA Mempaga 1 1,806.17 1,789.25 FELDA Mempaga 2 730.56 726.56 FELDA Mempaga 3 921.56 911.56 Total: 8,472.77 8,100.85
Notes: 1. This Main Assessment covered the overall land use for oil palm plantation areas, and the identified Conservation areas including HCV areas marked out at the estates. 2. The estates sampled for this Main Assessment have been selected based on their potential risks on social, environmental and biodiversity issues such as their proximity to forest reserves, hill sides, riparian zones and high conservation value areas.
1.4 Summary of plantings and cycle The 6 estates been developed since 1978 and are currently in the 2nd planting cycle since 2003. The latest replanting was completed in 2012 at Kg Sertik estate. The age profile is as shown in Table 3.
Table 3: Age Profile of Planted Oil Palm
Cycle of Mature OP (ha) Immature OP (ha) Estate Name Year of Planting Planting – Above 3 years – 3 years & below FELDA Kg Sertik 2011-2012 2nd cycle 842.51 466.78 FELDA Lakum 2003 2nd cycle 1,618.77 0 FELDA Bukit Damar 2003 2nd cycle 1,745.42 0 FELDA Mempaga 1 2003 2nd cycle 1,789.25 0 FELDA Mempaga 2 2006 2nd cycle 726.56 0 FELDA Mempaga 3 2010 2nd cycle 911.56 0 Total 7,634.07 466.78
Intertek RSPO Report: Main Assessment: 29 Sep – 2 Oct 2014_Final edited
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1.5 Summary of Conservation and HCV Areas The summary of Conservation and HCV Areas as identified in KKS Mempaga during this Main Assessment in 2014 is as shown in Table 4 below:
Table 4: Conservation and HCV Areas
# Statement of Land Use (Ha) Hectarage – Ha (2014) 1 Planted Area (ha) – Oil Palm - Mature 7,634.07 - Immature 466.78 2 Conservation Area (ha) - comprising buffer zones along small streams, hilly areas, 15.70 swampy and unplantable areas 3 HCV Area (ha) - comprising buffer zones near forest reserves, water 0 catchments, burial & religious sites
1.6 Other certifications held and Use of RSPO Trademarks There are currently other certifications held by KKS Mempaga POM such as ISO 9001:2008, ISO 14001:2004 & OHSAS 18001:2007 certifications which are valid.
The RSPO’s trademarks and logo are not being used by the PMU audited. Instructions for use were provided and acknowledged by the PMU through a signed Memorandum of commitment agreeing to adhere to the latest “RSPO Rules on Communications & Claims”.
1.7 Organizational information / Contact Person
Name: Norazam Abdul Hameed Designation: General Manager, Sustainability and Quality Management (PSQM) Department Full Address: Plantation Sustainability and Quality Management (PSQM) Department, Felda Global Ventures Plantations (Malaysia) Sdn Bhd (FGVPM), Menara Felda Platinum Park, Level 20, No 11, Persiaran KLCC, 50088 Kuala Lumpur, Malaysia. Tel: +603 2859 0000 Fax: +603 2859 0016 Email: [email protected]
Name: Anthonius Sani Designation: Sustainability Manager, Plantation Sustainability and Quality Management (PSQM) Department Full Address: Plantation Sustainability and Quality Management (PSQM) Department, Felda Global Ventures Plantations (Malaysia) Sdn Bhd (FGVPM), Menara Felda Platinum Park, Level 20, No 11, Persiaran KLCC, 50088 Kuala Lumpur, Malaysia. Tel: +603 2859 0000 Fax: +603 2859 0016 Email: [email protected]
Intertek RSPO Report: Main Assessment: 29 Sep – 2 Oct 2014_Final edited
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1.8 Tonnages Verified for Certification
1.8.1 The breakdown of all the suppliers and their tonnages of FFB supplied to the POM at KKS Mempaga Grouping based on the reporting period for 2014 (actual Jan to Sept + projected till Dec 2014) are as follows:
Table 5: FFB Received (2014: Actual + Projected)
Main Receiving # Estate /Supplier FFB Received (MT) Certified By Mill 1. FELDA Kg Sertik 3,946 KKS Mempaga Covered under this report 2. FELDA Lakum 38,626 KKS Mempaga Covered under this report 3. FELDA Bukit Damar 33,940 KKS Mempaga Covered under this report 4. FELDA Mempaga 1 41,668 KKS Mempaga Covered under this report 5. FELDA Mempaga 2 12,993 KKS Mempaga Covered under this report 6. FELDA Mempaga 3 5,582 KKS Mempaga Covered under this report Sub-total from PMU estates 136,755 (certifiable)
Other FELDA PMU 7 FGVPM Krau 4 estate 12,600 KKS Krau POM Uncertified Other external suppliers 8 External estates (4 nos) 16,500 Various Uncertified 9 Dealers (2 nos) 22,500 Various Uncertified 10 Other smallholders (16 nos) 9,970 Various Uncertified
Sub-total from other sources 61,570 (non-certified)
Grand total 198,325
1.8.2. Total annual volumes / tonnages of FFB supplied from the supply base to POM during the previous period, current assessment period and next projected period are as follows:
Table 6: Comparison of Processed Tonnages
FFB Processed in FFB Processed in FFB Processed for Estate / Supplier *2013 - Actual 2014- Actual + Projected 2015 - Projected MT % MT % MT % Certifiable FFB i.e. KKS 91,128 80 136,755 69 168,000 80 Mempaga Group Estates Non-certifiable FFB i.e. 22,782 20 61,570 31 42,000 20 Other external Suppliers Total 113,910 100 198,325 100 210,000 100 SCCS Model for POM MB MB MB
Intertek RSPO Report: Main Assessment: 29 Sep – 2 Oct 2014_Final edited
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*Note: In 2013, KKS Mempaga POM was closed for upgrading from February to July 2013 and there was no processing of FFB during that period.
1.8.3 The overall annual tonnages of CPO and PK production by the PMU from the supply base / suppliers as assessed during the current assessment period and the next projected period are as follows:
Table 7: Comparison of Overall Tonnages (Certifiable + Uncertified)
2013 2014 2015 POM - Actual - Actual + Projected - Projected Total FFB Processed (MT) – 113,910 198,325 210,000 Certifiable + uncertified
Total CPO Production (MT) OER: OER: OER: 24,320 43,433 46,200 – Certifiable + uncertified 21.35% 21.90 % 22.00 %
Total PK Production (MT) - KER: KER: KER: 6,151 11,503 12,180 Certifiable + uncertified 5.40% 5.80 % 5.80 % SCCS Model for POM MB MB MB
1.8.4 The annual certifiable tonnages of CPO and PK production as based upon the above data are derived and verified as follows:
Table 8: Comparison of Certifiable Tonnages Only
2013 2014 2015 POM - Actual - Actual + Projected - Projected Total Certifiable FFB 91,128 136,755 168,000 Processed (MT)
Total Certifiable CPO OER: OER: OER: 19,456 29,949 36,960 Production (MT) 21.35% 21.90% 22.00%
Total Certifiable PK KER: KER: KER: 4,921 7,932 9,744 Production (MT) 5.40% 5.80% 5.80% SCCS Model for POM MB MB MB
Note: Currently, the POM has established and maintained procedures for the book keeping and monitoring requirements for the CPO at the mill and was verified to be adopting the Mass Balance – MB model in accordance with the RSPO Supply Chain Certification Standard (SCCS) requirements. Verified activities and checked items for the SCCS of the POM are reported in section.3.1.1.
1.9 Time Bound Plan for Other Plantation Management Units
FGVPM/FELDA Group operates 70 palm oil mills and 416 oil palm estates and schemes throughout Malaysia. The organization is a member of RSPO since 2004 and has been taking an active role in the RSPO certification. Currently, a significant number of its Certification Units is undergoing the RSPO certifying process in accordance with its time bound plan to achieve RSPO certification for all its plantation certification units by 2016.
Based on the due diligence conducted on FGVPM there were no significant land conflicts, no replacement of primary forest or any area containing HCVs since November 2005, no labour disputes that are not being resolved through an agreed process, no evidence of non-compliance with law in any of the non-certified holdings.
Details of the Time Bound Plan as submitted by FGVPM are as per Appendix E.
Intertek RSPO Report: Main Assessment: 29 Sep – 2 Oct 2014_Final edited
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1.10 Abbreviations Used
BOMBA Fire Services Department ISCC International Sustainability & Carbon Certification CB Certification Body IUCN International Union for Conservation of Nature CHRA Chemical Health & Risk Assessment JAS Jabatan Alam Sekitar CPO Crude Palm Oil JKKP Jabatan Kesihatan dan Keselamatan Pekerja CSDS Chemical Safety Data Sheets KER Kernel Extraction Rate CSPO Certified Sustainable Palm Oil LTA Lost Time Accidents CSPK Certified Sustainable Palm Kernel MPOB Malaysia Palm Oil Board DOE Department of Environment MSDS Material Safety Data Sheets DOSH Department of Occupational Safety and Health MTCS Malaysia Timber Certification Scheme EFB Empty Fruit Bunch NCR Non-Conformance Report EHS Environmental Health & Safety NGO Non-Government Organization EIA Environmental Impact Assessment OER Oil Extraction Rate ETP Effluent Treatment Plant OHS Occupational Health & Safety FASSB Felda Agricultural Services Sdn Bhd PEFC Programme for the Endorsement of Forest Certification FELDA Federal Land Development Authority PK Palm Kernel Felda Global Ventures Plantations (Malaysia) PMU Plantation Management Unit FGVPM Sdn Bhd FFB Fresh Fruit Bunch POM Palm Oil Mill GAP Good Agriculture Practice POME Palm Oil Mill Effluent HCV High Conservation Values PPE Personal Protective Equipment Intertek Intertek Certification International Sdn Bhd SCCS Supply Chain Certification Standard IPM Integrated Pest Management SOP Standard Operating Procedures
Intertek RSPO Report: Main Assessment: 29 Sep – 2 Oct 2014_Final edited
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2.0 ASSESSMENT PROCESS
2.1 Assessment Methodology, Plan and Site Visits
Since 17th July 2014, Intertek has initiated public communications and notifications and invited the relevant stakeholders before the assessment to provide feedback and comments on their concern (if any) on KKS Mempaga Grouping regarding the environmental, biodiversity, community development and other relevant issues.
From 29th September to 2nd October 2014, the Assessment team of Intertek conducted the Main Assessment in which 3 estates out of the 6 estates of KKS Mempaga Grouping namely FELDA Kampung Sertik, FELDA Bukit Damar and FELDA Mempaga 1 as well as the palm oil mill were assessed for compliance against the RSPO requirements. On-site verification for the major non-compliances was performed on 10th December 2014.
The number of estates sampled was based on a minimum sample of 0.8√y where y is the number of management sub-units and the selection was made based on their potential risks on social, environmental and biodiversity issues such as their proximity to forest reserves, hill sides, riparian zones and high conservation value areas.
Since the PMU consists of FELDA Smallholders and FTP managed Smallholders, a second level of sampling of smallholders was carried out for assessment as shown in the Table 9 below in addition to the first level of sampling for the estates. The assessment carried out included a combination of field inspections and interviews of the sampled FELDA and FTP Smallholders.
Table 9: Sampling Plan of Estates and Smallholders
1st Level of FELDA Kg FELDA FELDA Bukit FELDA FELDA FELDA sampling of Sertik Lakum Damar Mempaga 1 Mempaga 2 Mempaga 3 estates Sample size √ - √ √ - - 2nd Level of No. of No. of No. of No. of No. of No. of No. of No. of No. of No. of No. of No. of sampling of FTPS FS FTPS FS FTPS FS FTPS FS FTPS FS FTPS FS estate smallholders 100 297 200 305 130 306 120 281 90 97 100 110 Sample size 8 14 - - 10 14 9 14 - - - -
Legend: FTPS = FTP Smallholders (managed by FTP) FS = FELDA Smallholders (smallholders managing their own plots within the FELDA Settlers’ Scheme) Note: Total no. of Smallholders in the PMU is 2,136.
During the on-site assessment, relevant documents and records, including Standard Operating Procedures (SOP), management plans, hectarage development, FFB, CPO and PK production, oil palm age profile, operational controls and measures, operational data and records, training records, etc. were reviewed and verified for compliance. The Assessment team using the process approach auditing technique covered the palm oil mill and estate operations, agricultural practices, pest management, pesticide and fertilizer application, occupational health and safety, social accountability, environment and other requirements. Stakeholders’ interviews were conducted during the assessment and feedback obtained as part of information and evidence gathering. (See section 2.5 Process of stakeholder consultation).
KKS Mempaga Grouping POM was also assessed against the requirements for the Mass Balance Module as specified in RSPO Supply Chain Certification Standard for CPO mill. This part of the assessment covered the verification of implementation of documented procedures and availability of records to demonstrate compliance against all the elements for Mass Balance - MB requirements. These include documented procedure, purchasing and goods in, record keeping, sales and goods out, processing, monitoring and traceability of the CSPO and CSPK quantities, training for staff and claims.
The details of the Assessment Plan (actual on-site) are provided in Appendix B.
After completion of the on-site field assessment, Intertek also performed the evaluation of conformity against the RSPO Certification System requirements for CB. The assessment report, findings and associated documents were evaluated through independent reviews by the Intertek Internal Technical Review Panel which was subsequently validated by an external Peer Review prior to the Certification decision and approval of this report/certification by Intertek.
Intertek RSPO Report: Main Assessment: 29 Sep – 2 Oct 2014_Final edited
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2.2 Date of next scheduled visit
The next scheduled visit will be the Surveillance Assessment which will be carried out within a 12-month period after the Certification decision and approval date of this report/certification.
2.3 Qualifications of the Lead Assessor and Assessment Team
Competency details of the Lead Assessor and Assessment Team are given in Appendix A.
2.4 Certification Body
Intertek Certification International Sdn Bhd [formerly known as Moody International Certification (Malaysia) Sdn Bhd] is part of the Intertek Group, which is a worldwide technical services organization dedicated to reducing clients' risks by providing technical inspection services, management system certification in quality, environmental, occupational safety & health and product certification, RSPO SCC, ISCC, Marine Sustainability Chain-of-Custody, MTCS and PEFC Chain-of Custody certification in applicable industry sectors including the agricultural and forestry sectors. Intertek operates globally providing clients with a wide-ranging technical inspection expertise and access to thousands of skilled specialists worldwide. Intertek Group’s certification business is ranked in the top 10 worldwide, and is available globally offering certification across a wide range of industries.
2.5 Process of stakeholder consultation
Stakeholder consultations began with notification of the upcoming assessment through the websites of RSPO, FELDA and Intertek. E-mails, facsimiles and letters of the same were sent to applicable stakeholders including government agencies, NGOs and local communities. Telephone enquiries were made prior to the actual assessment and stakeholder’s response and feedback received were followed up accordingly.
During the assessment, stakeholders were interviewed and their feedbacks were recorded. Among the stakeholders consulted were workers, trade union leaders, women representatives; local community leaders, representatives of government departments / agencies and NGOs; external FFB suppliers, fertilizer suppliers and contractors.
Details on stakeholders’ feedback, PMU response and Intertek verification / comments are provided in section 3.3.
Among the list of key stakeholders consulted was the following:
Government Agencies (by emails) 1.Department of Lands And Mines 10.Department of Environment, Pahang 2.Department of Environment 11.Department of Forestry, Pahang 3.Department of Forestry Peninsular Malaysia 12.Department of Immigration ,Pahang 4.Department of Immigration 13.Department of Irrigation & Drainage, Pahang 5.Department of Irrigation & Drainage 14.Department of Labour, Pahang 6.Department of Labour 15.Department of Occupational Safety & Health, Pahang 7.Department of Occupational Safety & Health 16.Department of Wildlife & National Parks, Pahang 8.Department of Orang Asli Affairs 17.Land and Mines Office, Pahang 9.Department of Wildlife & National Parks
Statutory Bodies (by emails) 18.Malaysian Palm Oil Board (MPOB) 24.Malaysian Palm Oil Board (MPOB) - Sabah Region 19.Malaysian Palm Oil Board (MPOB) - Northern Region 25.Malaysia Palm Oil Association (MPOA) 20.Malaysian Palm Oil Board (MPOB) - Central Region 26.Malaysia Palm Oil Association Kuala Lumpur (MPOA) 21.Malaysian Palm Oil Board (MPOB) - Southern Region 27.Malaysia Palm Oil Association Sabah (MPOA) 22.Malaysian Palm Oil Board (MPOB) - Eastern Region 23.Malaysian Palm Oil Board (MPOB) - Sarawak Region
NGOs (by emails) 28.All Women’s Action Society (AWAM) 50.Malaysian Plant Protection Society (MAPPS) 29.BCSDM - Business Council for Sustainable Development 51.Mountaineering and Outdoor Pursuits Association of Negeri in Malaysia Sembilan 52.National Council of Welfare & Social Development Malaysia 30.Borneo Child Aid Society (Humana) NCWSDM 31.Borneo Resources Institute Malaysia (BRIMAS) 54.National Union of Plantation Workers (NUPW)
Intertek RSPO Report: Main Assessment: 29 Sep – 2 Oct 2014_Final edited
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32.Borneo Rhino Alliance (BORA) 55.Partners of Community Organisations (PACOS) 56.Penang Institute previously known as Socio-Economic & 33.Center for Orang Asli Concerns COAC Environmental Research Institute (SERI) 34.Centre for Environment; Technology and Development; 57.Pesticide Action Network Asia and the Pacific (PAN AP) Malaysia - CETDEM 35.Consumers Association Of Penang - CAP 58.Proforest - South East Asia Regional Office 59.R.E.A.C.H. - Regional Environmental Awareness Cameron 36.EcoKnights Highlands 37.ENO Asia Environment 60.Sabah Wetlands Conservation Society (SWCS) 38.Environmental Management and Research Association of 61.SEPA - Sabah Environmental Protection Association 39.Malaysia (ENSEARCH) 40.Environmental Protection Society Malaysia (EPSM) 62.SUARAM - Suara Rakyat Malaysia 63.SUHAKAM - National Human Rights Society - Persatuan 41.Friends of the Earth; Malaysia Kebangsaan Hak Asasi Manusia 42.Future in Our Hands Society; Malaysia 64.Sustainable Development Network Malaysia (SUSDEN) 43.Global Environment Centre 65 Tenaganita Sdn Bhd 44.HUTAN - Kinabatangan Orang-utan Conservation 66 The Malaysian Forum of Environmental Journalist (MFEJ) Programme 45.Institute of Foresters; Malaysia (IRIM) 67 TRAFFIC - the wildlife trade monitoring network 68 TRAFFIC Southeast Asia - Wildlife trade & trafficking 46.JUST - International Movement for a Just World monitoring programme 47.Malaysian CropLife & Public Health Association (MCPA) 69 Transparency International - Malaysian Chapter 48.Malaysian Environmental NGOs - MENGO 70 Treat Every Environment Special Sdn Bhd. (TrEES) 49.Malaysian National Animal Welfare Foundation - MNAWF 71 UNION - AMESU 72 United Nations Development Programme - UNDP Malaysia 73 Water Watch Penang (WWP) 74 Wetlands International (Malaysia) 75 Wild Asia Sdn Bhd 76 World Wide Fund for Nature (WWF) Malaysia 77 World Wide Fund of Nature (WWF) Sabah
Local community (On-site interviews) Gender representatives Suppliers / Contractors Workers representatives Village Heads / Representatives
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3.0 ASSESSMENT FINDINGS
3.1 Summary of findings
Principle 1: Commitment to transparency
Criteria 1.1 Growers and millers provide adequate information to relevant stakeholders on environmental, social and legal issues relevant to RSPO Criteria, in appropriate languages and forms to allow for effective participation in decision making. Indicators Findings and Objective Evidence Compliance Documented procedure Manual LESTARI (ML-1A), Complied 1.1.1 There shall be evidence that dated March 2012 for providing information, handling growers and millers provide adequate information upon request for information responses & requests from stakeholders was established on (environmental, social and/or legal) and communicated at FELDA KKS Mempaga PMU and issues relevant to RSPO Criteria to records of requests and responses have been relevant stakeholders for effective adequately maintained. participation in decision making. The mill and estate management have responded constructively and promptly to requests for information Minor Compliance from all stakeholders. This was evident from records sighted among which were letters, minutes of meetings, attendance notes held together with local authorities (e.g. BOMBA, JKKP, DOE), security service provider, smallholders, employee consultative committees and local community leaders. Date of public notification of the main assessment of the PMU was made on 17 Jul 2014. As at the period of assessment, there were no additional requests for information from stakeholders for this PMU. The PMU maintained an updated list of internal Complied 1.1.2 Records of requests for information and responses shall be maintained. stakeholders, external stakeholders, government departments/agencies, consultants, contractors, Major Compliance suppliers, transporters, etc. Records of stakeholders’ inspection & visit sighted, including JKKP factory visit, DOE sampling of effluent, BOMBA inspection records. Stakeholders meeting held on June & August 2014 with records of stakeholders’ feedback. Requests were attended to, and no negative remarks or complaints/grievances were found. e.g. requests from various stakeholders for the period January till August 2014. The Record Log indicated the actions taken and date. Other implementation documents & records were sighted from FFB supplying estates, which included land titles, training materials, health & safety plan, complaint files, negotiation procedure. Criteria 1.2 Management documents are publicly available, except where this is prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes. Indicators Findings and Objective Evidence Compliance 1.2.1 Management documents that are In line with the organization’s policies, FELDA KKS made available to the public shall include, but are not necessarily limited Mempaga PMU had established & documented information of land titles, health and safety plan, plans to: • Land titles/user rights (Criterion 2.2); and impact assessments relating to details of complaints
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& grievances, negotiation procedures. Major Compliance Management documents that were not available to NCR: 1 of 18 - the public during the audit (29 September to 2nd Major October 2014) at the estates sampled (FELDA/FTP Kg Sertik estate, FELDA/FTP Bukit Damar estate & FELDA/FTP Mempaga 1 Estate) are as stated below: 1) Plans relating to environment and social impacts 2) Pollution prevention and reduction plans 3) Continual improvement plans
Thus, NCR was raised.
Copies of all the land titles were available and have been maintained.
Noted that “Syarat Nyata” in the land titles sighted at Kg,Sertik estate indicated “Tanaman Getah Sahaja”. OBS: TSV-1 This should be changed to reflect current status as oil palm plantation. Thus, Observation was raised.
• Occupational health and safety plans Detailed documented plan of OSH established for each Complied (Criterion 4.7); estates & mill, updated & reviewed since January 2014. Major Compliance Programmes for protecting workers’ health & safety measures established & implemented. • Plans and impact assessments relating Environmental aspect and impact assessment, and its Refer to NCR 1 to environmental and social impacts (Criteria 5.1, 6.1, 7.1 and 7.8); plan as well as social impact assessment have yet to be of 18. documented at the sampled estates. Major Compliance The SEIA established by Sustainability team (HQ) was reviewed and updated on 30th August 2014 with feedback from the Mill, Estate managers and RSPO implementation team. • HCV documentation summary (Criteria Based on the internal SEIA survey and evaluation, there Refer to NCR 4 5.2 and 7.3); was no HCV area at KKS Mempaga PMU. of 18. Major Compliance Management Action for Conservation areas need to be monitored and progressively implemented at the respective Estates. See also findings under C5.2. • Pollution prevention and reduction Pollution prevention & reduction plans were yet to be Refer to NCR 1 plans (Criterion 5.6); adequately documented in KKS Mempaga PMU as there of 18. Major Compliance were available at the POM only The plans includes measures for pollution control (incl. pesticides, schedule wastes, domestic wastes etc). However these plans were not available at the estates audited. Refer to NCR 1. See also findings under C5.6. • Details of complaints and grievances Documented in Manual Lestari, dated March 2012. Complied (Criterion 6.3); Complaints / queries and enquiries records for internal Major Compliance and external stakeholders were maintained. Actions taken found to be appropriately implemented and recorded. See also findings under C6.3. • Negotiation procedures (Criterion 6.4); Negotiation procedure was documented in Manual Complied
Major Compliance Lestari, updated & reviewed March 2012. There were no reported cases of land conflict at this PMU. • Continual improvement plans (Criterion The continual plans have yet to be adequately Refer to NCR 1 8.1); documented for internal reference and public availability. of 18.
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Major Compliance See also findings under C8.1. • Public summary of certification Public summary of certification assessment reports are Complied assessment report; available from the company upon request. Major Compliance • Human Rights Policy (Criterion 6.13). The Human Rights Policy dated 1st June 2014 has been Complied.
Major Compliance documented and communicated to all levels of the workforce and operations.
Criteria 1.3 Growers and millers commit to ethical conduct in all business operations and transactions. Indicators Findings and Objective Evidence Compliance 1.3.1 There shall be a written policy Policy of Commitment to a Code of Ethical Conduct and Complied. committing to a code of ethical conduct and integrity in all operations and Integrity has been documented and communicated to all transactions, which shall be documented levels of the workforce and operations. and communicated to all levels of the Integrity awareness training for selected employees was workforce and operations. conducted on 22nd September 2014.
Minor Compliance
Principle 2: Compliance with applicable laws and regulations Criteria 2.1 There is compliance with all applicable local, national and ratified international laws and regulations.
Indicators Findings and Objective Evidence Compliance 2.1.1 Evidence of compliance with The KKS Mempaga PMU has established a documented Complied relevant legal requirements shall be available. system explaining the mechanism for identifying, determining, reviewing and updating applicable legal and Major Compliance other requirements that the PMU has subscribed. Based on the site observations, interviews and records checking at the field and mill, there were evidences of compliance with the relevant laws, regulations, local and international laws at the POM and estates. There were no cases of any violation or actions imposed by relevant authorities. Palm oil mill possessed valid MPOB license which will expire on 31st March 2015. Licenses and permits (License for Trading, License for Employment of Foreign Workers, Workers Wages Deduction Permit, Domestic and Consumer Permit for Keeping Diesel, Petrol & Fertilizer, DOSH Certificates, DOE Permit, etc) were renewed and evidenced to be valid. Factory and Machinery Act 1967, Regulations 1970: Steam engineers (Grade 1 and 2), boilermen and electricians were noted to be with valid certificates from relevant authorities (DOSH and Energy Commission). Valid certificates of fitness for boilers, sterilizers, air receivers, thermal deaerator, steam separator, vacuum oil dryer, etc. issued by DOSH. Valid license for diesel generators issued by Energy Commission (“Suruhanjaya Tenaga”). Valid licenses for authorized gas tester (ACT), authorized entrant and standby by person for confined space activities in POM. Occupational Health and Safety Act 1994: Safety and health meetings conducted at quarterly intervals. Noise
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Monitoring Report is available. The POM has been certified by SIRIM for its Quality, Environment and Safety & Health Management Systems. FELDA and FTP have informed the smallholders concerning the relevant legal requirements and monitored their activities for continuing compliance with the relevant legal requirements. 2.1.2 A documented system, which The documented system for identifying, determining, Complied includes written information on legal requirements, shall be maintained. reviewing and updating applicable legal and other requirements that the PMU has subscribed to was Minor Compliance maintained. It included the listing of laws and regulations that were being monitored for changes had also made reference to the latest statutory requirement such as EQ (Clean Air) Regulation 2014. List of laws and circulars received from regulatory bodies such as from DOE (Department of Environment) and DOSH (Department of Occupational Safety and Health) including correspondences with them were verified to be maintained. There were no significant issues outstanding. DOSH inspection for the POM scheduled on 4th October 2014.
2.1.3 A mechanism for ensuring The mechanism for ensuring compliance were not NCR: 2 of 18 - compliance shall be implemented. effectively implemented at Minor 1) FELDA/FTP Kg Sertik estate, Minor Compliance 2) FELDA/FTP Bukit Damar estate & 3) FELDA/FTP Mempaga 1 Estate) The “Evidence” column was left blank and no evidence stated in the Evaluation of Compliance Checklist sighted at the locations sampled above. Thus NCR was raised. 2.1.4 A system for tracking any changes The listing of all the relevant laws applicable included the Complied in the law shall be implemented. international laws and conventions ratified by the Minor Compliance Malaysian government are documented in the Legal register. Tracking of changes in the relevant laws are communicated and received from the Sustainability Team, HQ. Monitoring of changes to the applicable laws and regulations carried out through periodical review in accordance with the documented procedure and last performed in 1st September 2014. This was evidenced in the review meetings minuted which was noted to be chaired by the Regional management, Sustainability Manager with Mill and Estate Managers in attendance. Operating licenses and permits were displayed, renewed and evidenced to be valid e.g. MPOB (Malaysian Palm Oil Board) license for Mill – valid till next year. Statutory returns were settled and receipts filed were sighted. Based on the site observations, interviews and records updated, the system used is appropriately tracking the operations at the PMU.
Criteria 2.2 The right to use the land is demonstrated, and is not legitimately contested by local people who can demonstrate that they have legal, customary or user rights. Indicators Findings and Objective Evidence Compliance
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2.2.1 Documents showing legal Copies of the land titles of all estates were maintained Complied. ownership or lease, history of land tenure (confirmation from community leaders and found to be in proper order. based on history of customary land The original copies are maintained by the corporate head tenure, recognised Native Customary office. The legal use of the land was confirmed for the Right (NCR) land) and the actual legal cultivation of oil palms and agricultural use. use of the land shall be available.
Major Compliance 2.2.2 There is evidence that physical Legal boundary markers were sighted and maintained Complied. markers are located and visibly maintained along the legal boundaries along the perimeters of estate lands which were mapped adjacent to state land, NCR land and with a meter differential Global Positioning System (GPS). reserves. Locations of several boundary stones and pole markers were visited. Verified that the pole markers were within Minor Compliance the boundary parameters of each estate. Demarcation was also evidenced by the dug up trenches and drains which were adjacent to neighboring independent smallholder/villager estates.
2.2.3 Where there are or have been Currently, there has been no dispute on the land rights in Complied disputes, additional proof of legal acquisition of title and evidence that fair KKS Mempaga PMU. compensation has been made to As such, the process of fair compensation and FPIC is previous owners and occupants shall be currently not applied. available, and that these have been accepted with free, prior and informed consent (FPIC).
Minor Compliance 2.2.4 There shall be an absence of Due diligence was exercised through the implementation Complied significant land conflict, unless requirements for acceptable conflict of documented procedure for handling & response to land resolution processes (see Criteria 6.3 disputes, customary rights in Manual Lestari, dated and 6.4) are implemented and accepted March 2012; documented procedure for handling by the parties involved. negotiation in Manual Lestari, dated March 2012; as well as documented procedure for calculation & distribution of Major Compliance compensation in Manual Lestari, dated March 2012. 2.2.5 For any conflict or dispute over the Currently, there is no conflict or dispute over the land. Complied land, the extent of the disputed area shall be mapped out in a participatory way with According to FELDA’s documentation and process, if involvement of affected parties (including there were incidences of land conflict, the disputed areas neighbouring communities and relevant will be mapped out in participatory way with involvement authorities where applicable). of affected parties. Internal investigation will be carried out, and appropriate follow up actions taken to resolve Minor Compliance land conflict issues. 2.2.6 To avoid escalation of conflict, No case of any conflict or dispute over the land. No Complied there shall be no evidence that oil palm operations have instigated violence in violence had been exercised in maintaining peace & maintaining peace and order in their order in their current & planned operations at the estates. current and planned operations.
Major Compliance Criteria 2.3 Use of the land for oil palm does not diminish the legal, customary or user rights of other users without their free, prior and informed consent.
Indicators Findings and Objective Evidence Compliance 2.3.1 Maps of an appropriate scale The lands at the PMU are legally owned by FELDA. Complied showing the extent of recognised legal, customary or user rights (Criteria 2.2, 7.5 There were cases in the earlier period in 1980’s of land and 7.6) shall be developed through disputes being reported among the smallholders located participatory mapping involving affected adjacent to each and other. parties (including neighbouring Participatory mapping involving affected parties identified communities where applicable, and and compensation or returning the land back to the
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Report No.: R9301/14-1 Felda Global Ventures Plantations (Malaysia) Sdn Bhd Page 18 of 71 KKS MEMPAGA GROUPING - MAIN ASSESMENT relevant authorities). claimants was done in an FPIC manner. The subsequent return of lands back to claimant/rightful user has also Major Compliance been validated by the State Land authorities and recorded. 2.3.2 Copies of negotiated agreements The lands were granted by State government of Pahang Complied detailing the process of free, prior and informed consent (FPIC) (Criteria 2.2, 7.5 in the 1970’s and 1980’s with the right to develop it as oil and 7.6) shall be available and shall palm plantations. include: Records are available to show such land acquisition comply with legal requirements and does not infringe on a)affected groups in the communities, any legal rights that require FPIC. and that information has been provided to all affected groups, including Evidence of negotiated agreements through consultation information on the steps that shall be and discussion with affected groups in the communities taken to involve them in decision making; were sighted for the earlier cases of smallholder land disputes noted during the 1970’s and 1980’s. b) Evidence that the company has respected communities’ decisions to give Presently, there are no further cases of land conflicts or withhold their consent to the operation reported. at the time that this decision was taken; c) Evidence that the legal, economic, environmental and social implications for permitting operations on their land have been understood and accepted by affected communities, including the implications for the legal status of their land at the expiry of the company’s title, concession or lease on the land.
Minor Compliance 2.3.3 All relevant information shall be Relevant info pertaining to the compensation & legal Complied available in appropriate forms and languages, including assessments of arrangements, including transfer of legal land titles were impacts, proposed benefit sharing, and found available at FELDA’s main/regional office at legal arrangements. Pahang.
Minor Compliance 2.3.4 Evidence shall be available to show No recent cases of land disputes were reported either by Complied that communities are represented through institutions or representatives of individuals or their family members. their own choosing, including legal counsel.
Major Compliance
Principle 3: Commitment to long-term economic and financial viability Criteria 3.1 There is an implemented management plan that aims to achieve long-term economic and financial viability.
Indicators Findings and Objective Evidence Compliance 3.1.1 A business or management plan A 3 year management plan documented, with details of Complied (minimum three years) shall be documented that includes, where budget & cost of operation, both for oil mill & estates appropriate, a business case for scheme Annual budget of Business Management Plan included smallholders. the following:
Major Compliance (i) Planting materials (DXP seedling and cloned seedling); (ii) Crop projection = FFB yield/ha trends; (iii) Mill extraction rates = OER trends; (iv) Cost of Production = Cost/MT FFB trends; (v) Cost of Production = Cost/MT CPO trends; (vi) Forecast prices;
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(vii) Financial indicators = Cost of labor, cost of supervision, cost of manufacture, depreciation) The budgets also include provisions for sustainability efforts and improvement programmes (environmental aspects on road maintenance, domestic waste collection, maintenance of buffer zones). The Mill and FELDA/FTP Managers have monitored the operational performance against Key Performance Indications and targets (costs, FFB yields, quality, productivity, pesticides usage, fertilizers usage, etc). Records of monitoring of costs against budget to achieve specified targets were verified to be available. Performances are discussed in the monthly meetings held at the PMU and issues and actions needed are recorded for follow up in the next monthly meeting. The records of these meetings were available and verified during the audit. Monthly, quarterly, half-yearly and yearly reports are submitted to the GM of Zone/Wilayah. 3.1.2 An annual replanting programme Replanting programme projected for each estate in this Complied projected for a minimum of five years (but longer where necessary to reflect PMU is available. Evidence of replanting programme planned, reviewed & on-going implementations were the management of fragile soils, see nd Criterion 4.3), with yearly review, shall be carried out. The 2 cycle replanting had completed in the available. estates since 2012.
Minor Compliance
Principle 4: Use of appropriate best practices by growers and millers
Criteria 4.1 Operating procedures are appropriately documented, consistently implemented and monitored. Indicators Findings and Objective Evidence Compliance 4.1.1 Standard Operating Procedures The mill and the estates had a copy each of the Standard Complied (SOPs) for estates and mills shall be documented. Operating Procedures and these had been verified to be in order. Major Compliance The list of SOPs available includes Safe working practices and application of pesticides, Riparian zone management, Safe working practices in the POM, Monitoring and measuring of mill effluents etc. Control measures for Safe working practices at the POM and estates included issuance of Permit to Work, use of PPE and related Training which is documented in the HIRARDC Analysis table. Records of implementation were verified. 4.1.2 A mechanism to check consistent The mechanism to check the implementation of SOPs Complied implementation of procedures shall be in place. was available. Records had been kept by the staff concerned for each operation to monitor the procedure Minor Compliance and progress of work, and these records would be checked by the Assistant Manager and the Manager regularly. These records had been verified to indicate satisfactory implementation during the visit. 4.1.3 Records of monitoring and any The records of monitoring and the actions taken had actions taken shall be maintained and available, as appropriate. been maintained for more than 60 months on the mill and estates concerned. These records had been verified to
Minor Compliance be satisfactory.
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However, on the 3 Estates audited, the name of the chemical and the quantity of it used daily had not NCR: 12 of 18 been recorded in the daily spraying record book. It - Minor would be difficult for the management to check on the total amount of the chemical used, and the name of the chemical used might not be remembered after some time. A minor non compliance had been issued.
4.1.4 The mill shall record the origins of The mill maintained record on the origins of all third-party Complied all third-party sourced Fresh Fruit Bunches (FFB). sourced Fresh Fruit Bunches (FFB), and it had been verified to be satisfactory. Major Compliance Criteria 4.2 Practices maintain soil fertility at, or where possible improve soil fertility to, a level that ensures optimal and sustained yield. Indicators Findings and Objective Evidence Compliance 4.2.1 There shall be evidence that good GAP for minimization of soil erosion and maintenance of Complied agriculture practices, as contained in Standard Operating Procedures (SOPs), soil fertility is maintained via the frond stacking and are followed to manage soil fertility to a fertilizer application as per the recommendation provided level that ensures optimal and sustained from Felda Agricultural Services Sdn Bhd. yield, where possible.
Minor Compliance 4.2.2 Records of fertiliser inputs shall be Records of fertilizer application had been verified to be in Complied maintained. order. Minor Compliance 4.2.3 There shall be evidence of periodic Leaf and soil sampling and analysis had been carried out tissue and soil sampling to monitor on the areas under the management of Felda Techno changes in nutrient status. Plant.
Minor Compliance The areas under Felda management (the individual NCR: 13 of 18 scheme smallholdings) had not been sampled - Minor annually for tissue and soil analysis as they would have to request if they wanted sampling to be carried out, or they just followed and used the fertilizers recommended for the Felda Techno Plant areas. A minor non compliance had been issued.
4.2.4 A nutrient recycling strategy shall About 10% of EFB had been shredded and used as be in place, and may include use of Empty Fruit Bunches (EFB), Palm Oil supplementary boiler fuel. Mill Effluent (POME), and palm residues EFB mulching had been carried out in mature area along after replanting. the inter-row, and around the circle in the immature
palms. Records had been verified to be satisfactory. Minor Compliance However, on Mempaga 1 Estate F 1 and F 17, and Kg. Sertik Estate F 1, EFB application along the inter- NCR: 14 of 18 rows of mature palm was up to 3 to 4 layers. This is - Minor contrary to the SOP which states that EFB should be spread in 1 layer along the inter-rows. Most of the EFB had been heaped there for 2 to 3 months before they were spread in the inter-rows. A minor non compliance had been issued. Treated POME, after passing through the Bioflow Polishing system at the POM is finally discharged into the Sg Belawi river as was permitted by DOE. Criteria 4.3 Practices minimise and control erosion and degradation of soils.
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Indicators Findings and Objective Evidence Compliance 4.3.1 Maps of any fragile/marginal soils Based on the soil maps, there was no fragile soil on the Complied shall be available. estates. Major Compliance Reports of tissue and soil sampling done were verified to be available. Changes in soil nutrient status monitored on an annual basis through foliar and soil sampling and analysis. The Agronomist determines the annual fertilizer recommendations and there is evidence of implementation. 4.3.2 A management strategy shall be in There were few terraces constructed on palms planted place for plantings on slopes between 9 and 25 degrees unless specified earlier on the estates. otherwise by the company’s SOP. In the recent plantings, terraces had been constructed on slope more than 6° as per the SOP. Minor Compliance However, on Kg. Sertik Estate Div. 1, the planting terraces did not have back incline and stop bunds NCR: 15 of 18 along the terraces. These were contrary to the SOP - Minor of Felda on terrace construction. A minor non compliance had been issued. There was no soil erosion noted during the field visit. 4.3.3 A road maintenance programme Estate roads were found to be in satisfactory condition. Complied shall be in place. Road maintenance programme had been found to be in Minor Compliance order. 4.3.4 Subsidence of peat soils shall be Based on the estate soil maps, there was no peat soil on Not applicable minimised and monitored. A documented water and ground cover management the estates as confirmed by auditor’s on-site programme shall be in place. assessment.
Major Compliance 4.3.5 Drainability assessments where Based on the estate soil maps, there was no peat soil on Not applicable necessary will be conducted prior to replanting on peat to determine the long- the estates as confirmed by auditor’s on-site term viability of the necessary drainage assessment. for oil palm growing.
Minor Compliance 4.3.6 A management strategy shall be in Based on the estate soil maps and visit to the estates, Complied place for other fragile and problem soils (e.g. podzols and acid sulphate soils). there were no other fragile and problematic soils on these estates. Minor Compliance Criteria 4.4 Practices maintain the quality and availability of surface and ground water. Indicators Findings and Objective Evidence Compliance 4.4.1 An implemented water Documented water management plan which included the Complied management plan shall be in place. rainfall monitoring and relevant records had been verified Minor Compliance to be in order. Water samples were taken on monthly intervals at the final discharge point of the palm oil mill effluent pond, and at upstream, midstream and downstream of waterways as per the requirements of the DOE. The water supply for domestic use to staff, smallholders and workers’ housing is solely piped water from the water treatment plant operated by the water utility company. It is a requirement for the water utility company to ensure that tests are carried out on parameters to meet the Ministry of Health Specification for Drinking Water Quality.
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4.4.2 Protection of water courses and There was no construction of bunds/ weirs/dams across wetlands, including maintaining and restoring appropriate riparian and other the main rivers or waterways passing through the estates. buffer zones (refer to national best practice and national guidelines) shall be However, the following non compliance had been demonstrated. observed during the audit:
Major Compliance 1) On Bukit Damar Estate F2, there was no marking of buffer zone and boundaries for the stream NCR: 16 of 18 running across the field. - Major 2) On Mempaga 1 Estate F 11, there was a sign board showing the buffer zone for Sg. Mempaga, but no demarcation of the boundaries. There was evidence of chemical spraying on shrubs growing next to the river. A major non compliance had been issued.
4.4.3 Appropriate treatment of mill In palm oil mill, water samples had been taken at Complied effluent to required levels and regular monitoring of discharge quality, shall be monthly interval at the discharge point of effluent pond. in compliance with national regulations BOD levels had been in the range of 26 ppm in January (Criteria 2.1 and 5.6). and 61 ppm in September with an average of 55.2 ppm for 2013. There was no POME discharge from April to Minor Compliance August, 2013 as the mill was undergoing renovation exercise from February to August, 2013. BOD levels over the period Jan to Aug 2014 are below the limit specified by DOE, which is < 100 ppm. 4.4.4 Mill water use per tonne of Fresh Water usage in the mill averaged at 1.13 m3/tonne FFB. Complied Fruit Bunches (FFB) (see Criterion 5.6) shall be monitored. The level of water usage was within the industrial norm.
Minor Compliance Criteria 4.5 Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate Integrated Pest Management techniques. Indicators Findings and Objective Evidence Compliance 4.5.1 Implementation of Integrated Pest The estates were beginning to establish beneficial plants Complied Management (IPM) plans shall be monitored. in the fields. Some seedlings of the plants had been sighted in the nursery. Major Compliance Records on planting of beneficial plants had been verified on the estates. There was no Rhinoceros beetle attack in the immature areas. Pest infestation was minimal on the estates. Barn owl census was recorded and it was planned to provide 1 barn owl box per 30 ha. There was a reduction in rodent attack based on the FFB grading data at the POM over the past 12 months. Programme for planting of beneficial plants such as Turnera subulata, Cassia cobanensis, and Antigonon leptopus had been verified together with the respective maps to be satisfactory. 4.5.2 Training of those involved in IPM Training records for personnel have included the Complied implementation shall be demonstrated. respective smallholders on IPM implementation were Minor Compliance available and was verified on-site to be satisfactory during field assessment. Criteria 4.6 Pesticides are used in ways that do not endanger health or the environment.
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Indicators Findings and Objective Evidence Compliance 4.6.1 Justification of all pesticides used Written justification in Standard Operating Procedures of Complied shall be demonstrated. The use of selective products that are specific to the all agrochemicals use had been reviewed and found target pest, weed or disease and which acceptable. have minimal effect on non-target The PMU has an Approved List of Pesticides registered species shall be used where available. under the Pesticide Board of Malaysia. The types of chemicals used are as follows: Major Compliance (1) Glyphosate isopropyl amine (41% a.i.) - Ecomax (2) Metsulfuron methyl (20% a.i.) – Juru 20F (3) Paraquat dichloride (13% a.i.) - Paraquat (4) Triclopyr butoxy ethyl ester (32.1% a.i.) - Garlon (5) Glufosinate ammonium (13.5% a.i.) – Basta 15
4.6.2 Records of pesticides use Records of pesticides and their active ingredients used, Complied (including active ingredients used and their LD50, area treated, amount of LD50, area treated, amount of a.i. applied per ha, and active ingredients applied per ha and number of applications had been maintained and kept for number of applications) shall be a minimum of 5 years. Verified that records of monitoring provided. were satisfactorily.
Major Compliance
4.6.3 Any use of pesticides shall be It had been the policy of the estates to minimize the use Complied minimised as part of a plan, and in accordance with Integrated Pest of pesticides in accordance with integrated pest Management (IPM) plans. There shall be management. No prophylactic use of pesticides had no prophylactic use of pesticides, except been carried out at the estates for the period concerned. in specific situations identified in The pesticide reduction program is monitored on usage industry’s Best Practice. per hectare basis. Overall, the monitoring record showed a slight decline in usage over the past 12 Major Compliance months. 4.6.4 Pesticides that are categorised as Felda Techno Plant planned to eliminate the use of Complied World Health Organisation Class 1A or 1B, or that are listed by the Stockholm or Paraquat by 2017 on the estates. Rotterdam Conventions, and paraquat, Scheme smallholders would reduce the use of Paraquat are not used, except in specific situations gradually. identified in industry’s Best Practice. The use of such pesticides shall be The requirements for use of Highly Toxic Pesticides minimised and eliminated as part of a (HTP) such as paraquat were checked and verified for plan, and shall only be used in compliance under the Pesticides Act 149 and USECHH exceptional circumstances. Pesticides 2000 regulations i.e. they are kept under lock and key; selected for use are those officially records of Form II for the paraquat used were available; registered under the Pesticides Act 1974 First Aid Kits was issued to all Mandores & Supervisors; (Act 149) and the relevant provision Portable Signage boards were available and noted to be (Section 53A); and in accordance with displayed at areas of spraying activity during field USECHH Regulations (2000). inspection and visit. Minor Compliance 4.6.5 Pesticides shall only be handled, All pesticide operators including the contractors’ workers Complied used or applied by persons who have completed the necessary training and and smallholders had been given training on the handling shall always be applied in accordance and application of the pesticides. Appropriate safety and with the product label. Appropriate safety application equipment had been provided and used by and application equipment shall be the pesticide operators. provided and used. All precautions The appropriate safety and application equipment (safety attached to the products shall be boots, safety helmets, rubber boots, cartridge masks, properly observed, applied, and understood by workers (see Criterion safety goggles, gloves, ear, and overalls) had been 4.7). provided and used by the pesticides operators. All precautions attached to the pesticides (MSDS) had Major Compliance been observed, applied and understood by the workers. Duration of work with paraquat recorded in Form II. The training programme and records had been verified to be satisfactory. The training include spraying technique,
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precautions and symptoms of symptoms of toxic reactions such as skin disorders, rashes, mouth and throat pain, breathing difficulties or nail problems. The PMU has adequate facilities for mixing of pesticides and cleaning up after work. There are suitable storage areas for PPE. All precautions attached to the products had been observed, applied, and understood by the workers. Programme and training records had been verified to be satisfactory. 4.6.6 Storage of all pesticides shall be Storage of pesticides found to be in accordance with the Complied according to recognised best practices. All pesticide containers shall be properly Occupational Safety and Health Laws and Regulations disposed of and not used for other and local laws on pesticides control. purposes (see Criterion 5.3). Pesticides Used containers had been reused for chemical spraying. shall be stored in accordance to the Excess containers were tripled rinsed and pieced with 3 Occupational Safety and to 4 holes at the bottom, then disposed of through D’ Health Act 1994 (Act 514) and Agor Felda Trading Sdn Bhd. Regulations and Orders, Pesticides Act 1974 (Act 149) and Regulations. Permit for the hazardous waste storage was available Major Compliance and maintained at Estate offices. Records verified.
4.6.7 Application of pesticides shall be Pesticides had been applied using the proven methods Complied by proven methods that minimise risk (Best Management Practices) that minimize risk and and impacts. impacts. The pesticide operators interviewed were found to understand the use of the right nozzle, spray drift, Minor Compliance spray quality and run-off.
4.6.8 Pesticides shall be applied aerially It’s not the policy of the company to carry out aerial Complied only where there is documented justification. Communities shall be application of pesticides. This policy has been adhered informed of impending aerial pesticide to. applications with all relevant information within reasonable time prior to application.
Major Compliance 4.6.9 Evidence of continual training to Periodic training on pesticide handling had been carried Complied enhance knowledge and skills of employees and associated smallholders out. Information on the pesticides had been displayed on on pesticide handling shall be the notice board and next to the pesticides in the store. demonstrated or made available. (see Continual training plans were available and were noted Criterion 4.8). to be progressively held for all the workers.
Minor Compliance 4.6.10 Proper disposal of waste material, At the POM, Scheduled waste had been sent through D’ See findings according to procedures that are fully understood by workers and managers Agor Felda Trading Sdn Bhd for disposal through in NCR 5 of 18 shall be demonstrated (see Criterion licensed contractor approved by DOE. (Indicator 5.3). However, this was not adequate done at the estates. 5.3.2) and Minor Compliance See findings in NCR 5 of 18 (Indicator 5.3.2) and NCR NCR 6 of 18 6 of 18 (Indicator 5.3.3). (Indicator 5.3.3). 4.6.11 Specific annual medical Annual medical surveillance for chemical operators had surveillance for pesticide operators, and documented action to treat related health been implemented as follows: conditions, shall be demonstrated. KKS Mempaga POM had sent 7 workers for medical surveillance on 4-4-2014 Major Compliance Medical surveillance reports of individual sprayers were available and details checked. The tests results had also indicated the blood cholinesterase levels. Comments of abnormalities are stated by the Medical doctor. Those found unsuitable for handling pesticides or
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other health reasons are recommended by the Medical doctor to be assigned for other work. Estate managers do reassign those found unfit for spraying work. Besides the annual medical surveillance, clinical records are checked as maintained by at the clinics available.
Interviews with the clinic nurses confirm that the workers
with medical disorders or symptoms are checked thoroughly to determine if they are still suitable for field work. Workers interviewed at field visit were healthy and fit for work. Bukit Damar Estate would send 7 of its workers for medical surveillance on 3-10-2014.
Mempaga 1 Estate would send 7 of its workers for medical surveillance in October, 2014. Kg Sertik Estate would send 3 of its workers for medical surveillance in October, 2014. All the estates audited had not carried out medical NCR: 17 of 18 surveillance for the operators handling chemicals in -Major 2014. A major non compliance had been issued.
4.6.12 No work with pesticides shall be Verified from records, field inspections and interviews Complied undertaken by pregnant or breast- feeding women. that no pregnant or breast-feeding woman had been offered work as pesticide operator. Major Compliance Criteria 4.7 An occupational health and safety plan is documented, effectively communicated and implemented. Indicators Findings and Objective Evidence Compliance The occupational health and safety plan Occupational Safety and Health (OSH) plan in Complied shall cover the following: compliance with OSH Act and Factory Machinery Act 4.7.1 An occupational health and safety was documented and implemented. policy shall be in place. An occupational OSH policy was clearly displayed at POM and in estates health and safety plan covering all office. Workers had demonstrated awareness towards activities shall be documented and occupational safety and health policy. implemented, and its effectiveness Risk assessment carried out on all operations where monitored. health and safety is an issue (e.g. noise exposure, Major Compliance pesticides/chemicals exposure, accident, fire). Yearly reporting of JKKP 8 regulations was submitted to JKKP on time i.e. in January, 2014. POM & its estates established their accident reporting KPI, and incident monitoring implemented. Procedures and actions documented and implemented on the issues concerned. Awareness and training programmes planned for year 2014 was consistently implemented. Evidence of training on safe working practices for workers involved in pesticides spray, use of fire extinguishers, awareness & understanding of MSDS/CSDS, First Aid boxes were sighted at both POM & estates. Precautions attached to products properly observed and applied to workers in all estates Appropriate PPE (safety boots, safety helmets, rubber boots, cartridge masks, safety goggles, gloves) verified to be provided. Ear protective device put on by worker working at engine room POM (>85 db limit). There were
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records maintained for the yearly audiometric test conducted for the listed mill workers. Companies had provided the appropriate PPE at the place of work to cover all potentially hazardous operations such as pesticides application, and harvesting. The Safety & Health officer was responsible for overall in change of safety and health planning, operation & coordination. Adequate fire extinguisher and hose reels found to be located at strategic locations, operational and maintained in good conditions. Training for estate workers in First Aid was carried out in 2013 and 2014 and records maintained. A total of 65 fire extinguishers were utilized at strategic areas. First Aid equipment was available at POM, estates and at worksite. Samples of First Aid boxes were checked and contents found to be complete and in usable order. 4.7.2 All operations where health and All operations had been risk assessed, documented and Complied safety is an issue shall be risk assessed, implemented. and procedures and actions shall be documented and implemented to Assessment of noise levels in the POM was conducted address the identified issues. All by DOSH in August 2014 which had identified the work precautions attached to products shall be areas with high noise levels i.e. boiler station, engine properly observed and applied to the room and sterilization units were above 85 dB. workers. Mill management have taken steps to reduce the noise levels by more frequent lubrication of machinery, Major Compliance reducing the exposure time to high noise and mandatory use of ear plugs and ear mufflers. Baseline audiogram and occupational and medical history records of workers were maintained. Monitoring carried out by the Regional Safety & Health Officer for any significant hearing loss. Annual audiometric tests/ reports conducted for all mill staff and workers were available and maintained. The workers checked did not suffer from significant hearing disabilities. The employees exposed to high noise levels were interviewed. The workers are aware of the danger of hearing loss due to prolonged exposure to high noise levels. The workers are also aware of the complaints process and mechanism available. “Permit to work” system was applied at the POM. Staff and workers have been trained and certified by NIOSH for gas entry and stand-by involving work in confined space. All precautions attached to the products had been observed and applied to the workers through MSDS. The mill/estate managers and Regional SHO are in charge to ensure precautions identified are properly observed. It was verified that the mill and estates have provided the appropriate PPE (safety boots, safety helmets, rubber boots, cartridge masks, safety goggles, gloves, ear plugs, ear mufflers) and the associated training to address safety and health issues. The POM and estates have established their accident reporting KPI and incident monitoring implemented.
4.7.3 All workers involved in the Awareness and training programme had been carried Compiled operation shall be adequately trained in out.
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Report No.: R9301/14-1 Felda Global Ventures Plantations (Malaysia) Sdn Bhd Page 27 of 71 KKS MEMPAGA GROUPING - MAIN ASSESMENT safe working practices (see Criterion All workers involved had been adequately trained in safe 4.8). Adequate and appropriate working practices. protective equipment shall be available Appropriate PPE had been provided to all workers at the to all workers at the place of work to place of work to cover all potentially hazardous cover all potentially hazardous operations, such as pesticide application, operations e.g. pesticide sprayers, manurers, harvesters machine operations, and land and workers exposed to high noise levels (≥85 dBA). preparation, harvesting and, if it is used, Warning signs reminding workers to use PPE (this burning. includes helmet, safety boots, ear plugs, ear mufflers, etc.) are displayed at appropriate work areas for the Major Compliance protection of safety and health of workers.
4.7.4 The responsible person/persons The responsible person (usually the Mandore or Complied shall be identified. There shall be records Headman) had been identified. of regular meetings between the responsible person/s and workers. Records of regular meetings between the responsible Concerns of all parties about health, safety and welfare shall be discussed at person and workers to discuss about health and safety these meetings, and any issues raised had been verified to be satisfactory. shall be recorded.
Major Compliance 4.7.5 Accident and emergency Accident and emergency procedures had been written procedures shall exist and instructions shall be clearly understood by all and briefed to staff, workers, contractors and visitors. Workers trained in First Aid were present in the mill and workers. Accident procedures shall be available in the appropriate language of field operations. the workforce. Assigned operatives Records on all accidents had been verified to be trained in First Aid should be present in maintained satisfactorily. both field and other operations, and first aid equipment shall be available at Quarterly review on accident cases had been carried out worksites. Records of all accidents shall during quarterly meeting of Environment, Safety, & be kept and periodically reviewed. Health (ESH)
At Kg. Sertik Estate, there were no First Aid Kits with Minor Compliance NCR: 18 of 18 the harvesting gang and the workers working at the - Minor oil palm nursery. A minor non compliance had been issued.
4.7.6 All workers shall be provided with Medical care had been provided to all the workers. Complied medical care, and covered by accident insurance. Local workers are covered by SOCSO, whereas foreign workers are covered by Foreign Workers Compensation Minor Compliance Scheme with the following insurance companies: Bukit Damar Estate: RHB Insurance Bhd. Mempaga Estate: AXA AFFIN General Insurance Bhd. Kg Sertik Estate: AXA AFFIN General Insurance Bhd. 4.7.7 Occupational injuries shall be Records on Lost Time Accident (LTA) metrics had been Complied recorded using Lost Time Accident (LTA) metrics. verified to be satisfactorily maintained.
Minor Compliance Criteria 4.8 All staff, workers, smallholders and contract workers are appropriately trained. Indicators Findings and Objective Evidence Compliance 4.8.1 A formal training programme shall A formal training programme on all aspects of RSPO Complied be in place that covers all aspects of the RSPO Principles and Criteria, and that Principles and Criteria has been established and includes regular assessments of training implemented. needs and documentation of the Training for various categories of operators, including all programme. field and office staff, with regards to their duties and training needs had been reviewed and found acceptable. Major Compliance 4.8.2 Records of training for each The palm oil mill had the records prepared. employee shall be maintained.
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The estates had yet to complete the records of OBS: CFK-1 Minor Compliance training for each employee. An observation had been issued.
Principle 5: Environmental responsibility and conservation of natural resources and biodiversity
Criteria 5.1 Aspects of plantation and mill management, including replanting, that have environmental impacts are identified, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continual improvement. Indicators Findings and Objective Evidence Compliance 5.1.1 An environmental impact Documented Environmental Aspect and Impact Complied assessment (EIA) shall be documented. Assessment, Plans were initially prepared for the Major Compliance respective estates by PSQM. Latest Environmental Aspect and Impact Assessment Plan dated 9th September 2014 was sighted at the POM Review and changes are the made by the PMU using the prescribed forms “Borang Pengenalan Aspek Alam Sekitar dan Impak- Identification of Environmental Aspects and Impact Assessment (IEA) Form” by the Mill and respective Estate managers between July and September 2014. The assessment documents had included the identification of aspects from field activities that includes fertilizing, spraying, transportation of FFB, garbage disposal and road maintenance. The report includes action plans and recommendations in order to mitigate negative effects and promote positive ones such as sewage, landfills and conservation activities applicable to the PMU.
5.1.2 Where the identification of impacts There were no major changes to the identified impacts requires changes in current practices, in order to mitigate negative effects, a since the establishment of the documents above in September 2014. timetable for change shall be developed and implemented within a The management plans were available at the POM but comprehensive action plan. The action had yet to be established in the estates in the prescribed plan shall identify the responsible formats and monitoring yet to be in place. person/persons. No (Environmental Management) Plan available NCR: 3 of 18 - Minor Compliance during audit to comply with 5.1.2 & 5.1.3 for the Minor estate sampled below: 1)FELDA/ FTP Kg Sertik estate, 2) FELDA/FTP Bukit Damar estate & 3) FELDA/FTP Mempaga 1 Estate) Need to have a plan to comprehensively cover the requirements stated above and based on the environmental impact assessment conducted for the respective estates. Thus, a NCR was issued. The responsible persons identified were the respective managers and their team for the implementation and monitoring of actions/activities stated in the management plan. 5.1.3 This plan shall incorporate a Implementation and monitoring for the documented Refer to NCR 3 monitoring protocol, adaptive to environmental plans were inadequate although planned
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Minor Compliance Criteria 5.2 The status of rare, threatened or endangered species and other High Conservation Value habitats, if any, that exist in the plantation or that could be affected by plantation or mill management, shall be identified and operations managed to best ensure that they are maintained and/or enhanced. Indicators Findings and Objective Evidence Compliance 5.2.1 Information shall be collated in a The ‘HCV Identification and Management Plan Areas’ Complied High Conservation Value (HCV) assessment that includes both the assessment report(s) for KKS Mempaga PMU estates have been collated by FELDA’s Sustainability team from planted area itself and relevant wider th landscape-level considerations (such as HQ and reviewed in 30 August 2014, and had wildlife corridors). incorporated feedbacks provided by the various governmental agencies such as Department of Forestry Major Compliance Pahang, Wildlife Department Pahang, Department of Environmental and Dept of Irrigation and Drainage. Verified that the HCV assessment Tool Kit was used as guidelines by the FELDA’s Sustainability team. Overall landscape of FELDA Mempaga estates has considered the potential HCV areas which are bordering with forest reserves e.g. Hutan Simpan Lakum & Klau. The Mempaga PMU estates are surrounded by palm oil estates either under FELDA or external parties. There are neighbouring forest reserves to the PMU. Based on the review, there was no HCV area within/at the Mempaga PMU. Note: In the absence of HCVs, conservation areas i.e. buffer zones along the stretches of river tributaries which pass through the Mempaga PMU estates were identified i.e. Sg Sertik river (at FELDA Kg Sertik estate), Sg.Jenalik river (FELDA Bukit Damar estate), Sg Senut river (FELDA Bukit Damar estate) and Sg Klau river (FELDA Mempaga 01).
5.2.2 Where rare, threatened or Regular patrols within the FELDA Mempaga PMU i.e. on Complied endangered (RTE) species, or HCVs, are present or are affected by plantation a weekly basis had been carried out and recorded by the or mill operations, appropriate measures respective Estate executives to monitor the Conservation that are expected to maintain and/or / buffer zone areas. enhance them shall be implemented The occasional sightings of various types of wildlife through an action plan. encountered were found to have been recorded.
Major Compliance Monitoring and control of any illegal hunting, fishing or collecting activities was also implemented. Large signages that prohibit hunting, fishing and water polluting activities were verified on-site and found to have been satisfactorily maintained. 5.2.3 There shall be a programme to There is evidence of commitment to discourage any Complied regularly educate the workforce about the status of these RTE species, and illegal or inappropriate hunting, fishing or collecting appropriate disciplinary measures shall activities via the signages erected which prohibit such be instituted in accordance with activities. company rules and national law if any The programme to regularly educate the plantation individual working for the company is
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5.2.4 Where an action plan has been Management plans were yet to be established so no created there shall be ongoing monitoring: monitoring outcomes were reviewed by the Estate managers. • The status of HCV and RTE species that are affected by plantation or mill There are no HCV or reported RTE at the Mempaga operations shall be documented and PMU, which has been verified during on-site assessment reported; to be satisfactory. • Outcomes of monitoring shall be fed back into the action plan. There was lack of evidence as follows: No (Action) Plan created/available during audit to Minor Compliance demonstrate ongoing monitoring on the status of RTE species and HCV(s) for the estate sampled NCR: 4 of 18 - below: Minor 1)FELDA/ FTP Kg Sertik estate, 2) FELDA/FTP Bukit Damar estate & 3) FELDA/FTP Mempaga 1 Estate) Need to demonstrate implementation of findings based on the HCV Identification, HCV Management Plan & Biodiversity dated 30th August 2014 conducted for Complex Mempaga. Thus NCR was issued. Overall, the above information from FELDA Mempaga estates will be collated and reviewed by the HQ Sustainability team for the PMUs in the region. 5.2.5 Where HCV set-asides with It is verified that there has been no instance of HCV set- Complied existing rights of local communities have been identified, there shall be evidence aside that conflicts with the rights of local communities at of a negotiated agreement that optimally FELDA Mempaga PMU. Thus negotiated agreement of safeguards both the HCVs and these such nature is not applicable. rights.
Minor Compliance Criteria 5.3 Waste is reduced, recycled, re-used and disposed of in an environmentally and socially responsible manner. Indicators Findings and Objective Evidence Compliance 5.3.1 All waste products and sources of There documentation and identification of all the waste Complied pollution shall be identified and documented. products such as scheduled waste, domestic waste and recyclable waste such as metal, plastic, mill waste and Major Compliance polluting materials e g. EFB, POME, Stack emissions and Boiler ashes were maintained and monitored at the PMU. Segregation of wastes i.e. general wastes and scheduled wastes was noted to be inadequate (see also NCR 5 of 18). Proper storage areas were identified for the storage of the recyclable wastes at the estates and mill. The mill had a proper Scheduled Waste Store for storing scheduled waste until time of disposal by DOE authorized waste disposal contractors e.g. Kualiti Alam. Scheduled Waste identified included spent hydraulic oil (SW 305), spent lubricant oil (SW 306) , used chemical
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containers/drums (SW 409), used filters (SW 410) and used batteries (SW 102). Appropriate secondary containment for the diesel skid tanks, chemical and scheduled waste storage areas was verified to be maintained.
5.3.2 All chemicals and their containers The scheduled waste identified above e.g. used shall be disposed of responsibly. batteries, spent hydraulic oil, spent lubricants/ residual chemicals, oily contaminated rags and contaminated Major Compliance chemical containers were disposed responsibly by the mill. Scheduled waste stores inspected at audited sites and disposal was done by scheduled waste disposal company authorized by Department of Environment for the mill.
However there was inadequacy noted in the estates as follows: Lack of evidence that all chemicals and their containers were disposed responsibly i.e. as NCR: 5 of 18 - scheduled waste for the estates sampled Major 1) FELDA/FTP Kg Sertik estate, 2) FELDA/FTP Bukit Damar estate & 3) FELDA/FTP Mempaga 1 estate No scheduled waste identified at the estates. Thus NCR was issued. 5.3.3 A waste management and disposal Waste management and disposal plans were available at plan to avoid or reduce pollution shall be documented and implemented. the POM and estates. The domestic waste is disposed by an appointed Minor Compliance contractor. Fertiliser bags are recycled and the empty
chemical (HDPE) drums are reused.
The solid waste management and disposal plan using landfills was available at the mill and estates. The designated landfill areas at Mempaga PMU estate were verified to be at least 500 m away from any streams / water sources -thus minimizing the risk of contamination of contamination of water sources.
Recycling of crop residues / biomass i.e. EFB and POME had been implemented. Management EFB application plans and progress reports were verified to be satisfactory. Recycling bins of three different colour codes for specific recycle waste were available in the POM and estates and were used for solid waste segregation and recycling. However, there was lack of evidence of proper waste management and disposal plan implemented to avoid or reduce pollution as follows: 1) FELDA/FTP Bukit Damar estate i.e. workers NCR: 6 of 18 - quarters area Minor 2) FELDA/FTP Mempaga 1 estate i.e. open dumping and noted waste littered from the main road to the open dump, near the workers quarters, strong odour etc & 3) KKS Mempaga POM noted canteen waste openly
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dumped at the boundary of mill The condition above is not consistent with the requirements 4.6 ML -1A/L3-GP6(0) Mac 2012 Thus a NCR was raised. Criteria 5.4 Efficiency of fossil fuel use and the use of renewable energy is optimised.
Indicators Findings and Objective Evidence Compliance 5.4.1 A plan for improving efficiency of The use of energy in palm oil mill and line site (supplied Complied the use of fossil fuels and to optimise renewable energy shall be in place and by TNB) was monitored monthly to compare the energy monitored. usage against the production of CPO. Electricity generation was through steam turbine and boiler where Minor Compliance Palm fiber and PK shells were used as renewable energy/fuel on a 70:30 ratio basis. Monthly records of energy consumption of non- renewable and renewable fuel per metric tonne of palm product at the POM were available. . At the estates, diesel consumption per metric ton FFB was also monitored on a monthly basis. At POM, average diesel usage for January to September 2014 is at 0.71litre/mt FFB processed. It is verified that energy usage are monitored and data compiled at the POM for comparison and control. Criteria 5.5 Use of fire for preparing land or replanting is avoided, except in specific situations as identified in the ASEAN guidelines or other regional best practice.
Indicators Findings and Objective Evidence Compliance 5.5.1 There shall be no land preparation The Mempaga PMU had observed the FELDA Group Complied by burning, other than in specific situations as identified in the ‘Guidelines policy of ‘Zero open burning’ for any replanting at the for the Implementation of the ASEAN estates. Policy on Zero Burning’ 2003, or No evidence of open burning was found during on-site comparable guidelines in other regions. inspection at estates.
Major Compliance 5.5.2 Where fire has been used for The PMU has adhered to the ‘zero burning ‘policy for Complied preparing land for replanting, there shall be evidence of prior approval of the replanting at the estates. controlled burning as specified in There was no evidence of any burning of domestic waste ‘Guidelines for the Implementation of the at the housing line sites and at the designated landfills of ASEAN Policy on Zero Burning’ 2003, or the estates during on site field assessment. comparable guidelines in other regions.
Minor Compliance
Criteria 5.6 Plans to reduce pollution and emissions, including greenhouse gases, are developed, implemented and monitored. Indicators Findings and Objective Evidence Compliance 5.6.1 An assessment of all polluting The Mempaga PMU had reviewed the environmental Complied activities shall be conducted, including gaseous emissions, particulate/soot impact assessment on potential pollution to water, emissions and effluent (see Criterion gaseous emissions to air and contamination on land in 4.4). 2014. The next review has been planned for in 2015. Mill gas emissions as monitored online by DOE, using Major Compliance the Continuous Emissions Monitoring System (CEMS) is maintained and verified to be within permissible limits of
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DOE. POME treatment, monitoring and land application is monitored, maintained and adhered to DOE regulations. 5.6.2 Significant pollutants and Significant pollutants and greenhouse gas (GHG) New greenhouse gas (GHG) emissions shall be identified, and plans to reduce or emissions were identified, e.g. POME, diesel / fuel and requirement of minimise them implemented. fertilizer usage have been documented at the PMU. This RSPO P&C has been verified to be satisfactory done on-site. (2013) - Follow Major Compliance up action at next ASA. The plans for the reduction or minimization of GHG is being formulated which will be directed from their OBS: TSV-2 HQ and made available in 2015. 5.6.3 A monitoring system shall be in Monitoring and reporting of the significant pollutants to Complied place, with regular reporting on progress for these significant pollutants and water, gaseous emissions to air and contamination on emissions from estate and mill land are available. operations, using appropriate tools. Tools and systems used include the DOE online CEMS monitoring for air emissions, water quality at discharge Minor Compliance points as per DID regulations and SW disposal were adhering to DOE requirements. It is verified that the POME is treated in using aerobic, anaerobic ponds and additionally through ‘Bio-flow’ and Clarifier tanks before the final discharging point. Water samples were taken on monthly basis and tested by mill environment officer in charge and analyzed to ensure compliance to DOE requirements at final discharge points. The discharged water is 100 % used for land application into the estates within the POM Mempaga PMU Grouping. Records are maintained and verified on-site to have met the permissible regulatory limits.
Principle 6: Responsible consideration of employees and of individuals and communities affected by growers and millers
Criteria 6.1 Aspects of plantation and mill management that have social impacts, including replanting, are identified in a participatory way, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continual improvement. Indicators Findings and Objective Evidence Compliance 6.1.1 A social impact assessment (SIA) The Social Impact Assessment (SIA) was reviewed for including records of meetings shall be documented. Mempaga Palm Oil Mill dated 15/09/2014, Management Plan and Continuous Improvement Plan was documented
Major Compliance and monitored. SIA was done with the use of standard survey form “Impak Sosial dan Mitigasi P6” for the Wilayah Mempaga and form “Borang Soal Selidik” for respective Mill and estate. Survey forms were collected and kept as records.
Social Impact Assessment (SIA) has not been NCR: 7 of 18 - prepared and documented for Bukit Damar estate and Major Mempaga 1 estate. Thus NCR was raised.
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6.1.2 There shall be evidence that the The participation of both internal and external assessment has been done with the participation of affected parties. stakeholders (including local from Governmental organizations) which was evident with the list of
Major Compliance participants recorded. Minutes of meetings as appended to the SIA Report were maintained as records. List of stakeholders were verified and included government bodies, a group associated stakeholders, neighboring estates and small holders, management staff and workers (incl. representative of migrant workers i.e. Indonesians), Contractors/suppliers and health clinic staff. Assessment to the internal and external stakeholders was not conducted for Mempaga 1 and numbers of NCR: 8 of 18 - sampling for the assessment conducted for Kg. Sertik Major was not adequate (i.e. did not include external stakeholders such as government agencies, suppliers, contractors and etc). Thus NCR was issued.
6.1.3 Plans for avoidance or mitigation There was no adequate plan documented to avoid NCR: 9 of 18 - of negative impacts and promotion of mitigation of negative impacts and promotion of the Major the positive ones, and monitoring of positive impact for KKS Mempaga (POM and Estates impacts identified, shall be developed audited) in consultation with the affected parties, documented and timetabled, Thus NCR was issued. including responsibilities for Records sighted were the appointed teams headed by implementation. estate managers and assisted by assistant managers. The roles and responsibilities of these appointed officials Major Compliance were defined. 6.1.4 The plans shall be reviewed as a The PMU has planned to review the SIA plans every year Complied minimum once every two years and updated as necessary, in those cases for follow-up and updating to current practices. The where the review has concluded that review is to include the participation of affected parties. changes should be made to current practices. There shall be evidence that the review includes the participation of affected parties.
Minor Compliance 6.1.5 Particular attention shall be paid Positive impacts such as increased work opportunities, Complied to the impacts of smallholder schemes (where the plantation includes such a increased income and improved living standards are scheme). identified.
Minor Compliance Criteria 6.2 There are open and transparent methods for communication and consultation between growers and/or millers, local communities and other affected or interested parties. Indicators Findings and Objective Evidence Compliance 6.2.1 Consultation and communication Documented policies “Polisi Komunikasi” dated 1st June Complied procedures shall be documented. 2014 and procedures “Prosedur Komunikasi, Penglibatan Major Compliance dan Rundingan” are available for internal and external communication and consultation. Estate managers are the nominated persons responsible for communication with the stakeholders. The organization has a list of stakeholders including local authorities, government departments, suppliers and contractors.
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Interviews with representatives of Gender Committee, workers’ association representatives, internal workers, workers’ dependents revealed open and transparent communication and consultation. These interviews confirmed the effectiveness of PMU consultation and communication processes with the internal and external stakeholders. 6.2.2 A management official Appointment records sighted show evidence the Complied responsible for these issues shall be nominated. existence of a management official for these issues. Interviews with mill and estate managers verified the Minor Compliance understanding of their roles and responsibilities. 6.2.3 A list of stakeholders, records of List of stakeholders are sighted in “SIA Stakeholders all communication, including confirmation of receipt and that efforts Consultation (Internal & External)” file. are made to ensure understanding by Noted that there are open and transparent methods for affected parties, and records of actions communication and consultation which has taken into taken in response to input from consideration the local conditions including migrant stakeholders, shall be maintained. workers and job opportunities for local people. Verified
that consultations with various stakeholders had been Minor Compliance held and recorded in the minutes of meeting that include
actions taken in response to input from stakeholders.
However, the List of stakeholders and records of communications for Mempaga 1, Bukit Damar and Kg NCR: 10 of 18 - Sertik estates were not maintained appropriately. Minor Thus NCR was issued.
Criteria 6.3 There is a mutually agreed and documented system for dealing with complaints and grievances, which is implemented and accepted by all affected parties. Indicators Findings and Objective Evidence Compliance 6.3.1 The system, open to all affected The PMU has an established and documented system for Complied parties, shall resolve disputes in an effective, timely and appropriate dealing with complaints and grievances and it was well manner, ensuring anonymity of implemented. complainants and whistleblowers, So far there was no cases reported in 2014 Respect of where requested. anonymity and protection of complainants is provided through “Polisi Pemberian Maklumat (Whistle Blowing)” Major Compliance st dated 1 June 2014 So far, the records shows the ‘Complaints and Grievances Book’ in all estates and palm oil mill are still active in recording complaints/requests made by employees, settlers and actions taken. Interviews with staff and workers and their representatives revealed knowledge and understanding of the complaints, dispute and resolution mechanism. The mechanism provides for open and consensual agreements with relevant affected parties. 6.3.2 Documentation of both the Complaints and grievances are handled by respective Complied process by which a dispute was resolved and the outcome shall be Estate Managers or through Jawatankuasa Kerja Minyak available. Sawit Mapan (JKKMSM)/ (JCC) which meets every 3 months. A record book and complaint form is used to Major Compliance forward a complaint or make a request for maintenance. Mechanisms are appropriately established and implemented. Records of meeting and any resolutions or outcomes are maintained through Minutes or in Complaints Log. Criteria 6.4 Any negotiations concerning compensation for loss of legal, customary or user rights are dealt with through a
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Report No.: R9301/14-1 Felda Global Ventures Plantations (Malaysia) Sdn Bhd Page 36 of 71 KKS MEMPAGA GROUPING - MAIN ASSESMENT documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions. Indicators Findings and Objective Evidence Compliance 6.4.1 A procedure for identifying legal, The PMU has a documented procedure for identifying Complied customary or user rights, and a procedure for identifying people legal and customary rights and procedure for identifying entitled to compensation, shall be in people entitled to compensation have been maintained. place. There were no borders which were adjacent to any villages or native land in the PMU. Therefore, no cases Major Compliance requiring any negotiation or compensation pertaining to these criteria. There have been no changes in this status as at the period of verification on site. 6.4.2 A procedure for calculating and There is a procedure for calculating and distributing Complied distributing fair compensation (monetary or otherwise) shall be compensation. Currently there has been no dispute by established and implemented, any parties relating to legal, customary or user rights at monitored and evaluated in a the PMU. participatory way, and corrective actions taken as a result of this evaluation. This procedure shall take into account: gender differences in the power to claim rights, ownership and access to land; differences of transmigrants and long-established communities; and differences in ethnic groups’ proof of legal versus communal ownership of land.
Minor Compliance 6.4.3 The process and outcome of any Currently, there has been no dispute by any parties Complied negotiated agreements and compensation claims shall be relating to legal, customary or user rights at the PMU. documented, with evidence of the Therefore the process and outcome of compensation participation of affected parties, and could not be observed. made publicly available.
Major Compliance
Criteria 6.5 Pay and conditions for employees and for contract workers always meet at least legal or industry minimum standards and are sufficient to provide decent living wages. Indicators Findings and Objective Evidence Compliance 6.5.1 Documentation of pay and Labour policy (Polisi Pengambilan Pekerja Asing dated 1st Complied conditions shall be available. June 2014) is documented and publicly available. Labour Major Compliance policy addresses migrant workers which come from Indonesia. Employment conditions meet legal requirement. Employment agreements, stating all statutory fringe benefits and eligible incentives are available. Stated conditions in the employment agreement includes working hours, overtime, leave and medical benefits, maternity leave for women, insurance coverage, deductions, resignation notice period, company rules, etc., which are in compliance with applicable legal requirements. The payment slip was easy to understand. Foreign workers are legally employed directly by Estates and work permits were available and verified to be satisfactory.
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The PMU has implemented the Minimum Wage Order 2012 consistent with FELDA policy, for all its employees as per agreement between Felda Palm Industries and Kesatuan Pekerja-Pekerja Felda Palm Industries Sdn. Bhd. (Semenanjung). Valid from 1st January 2013 until 31st December 2015 and Guidelines for Implementation of Minimum Wages Order 2013 (for plantation workers) Offer letter, employment agreements with applicable terms and conditions and accompanying appendices conditions are documented in Bahasa Malaysia and have been explained to and understood by the employees. The PMU also provides free housing and piped water supply, free electricity, medical benefits, mosques and welfare amenities that in overall constitutes a decent living for the employees. The documented pay and conditions are verified to be satisfactorily implemented. Pay and conditions documented in the employment contract and found to be in accordance with the 6.5.2 Labour laws, union agreements Documented employment contract (Kadar Upah Pekerja Complied or direct contracts of employment detailing payments and conditions of Ladang 2012, Bil 1/2012) verified for migrant workers had employment (e.g. working hours, covered all issue such as working hours, deductions, deductions, overtime, sickness, holiday overtime, sickness, holiday entitlement, maternity leave, entitlement, maternity leave, reasons and reasons for dismissal, period of notice made for dismissal, period of notice, etc.) available in Bahasa Malaysia which is understood by the shall be available in the languages workers (local and foreign workers) understood by the workers or explained carefully to them by a management official.
Major Compliance 6.5.3 Growers and millers shall provide The estate management was noted to have complied with adequate housing, water supplies, medical, educational and welfare Workers’ Minimum Standard of Housing and Amenities Act 1990 (Act 446). amenities to national standards or above, in accordance with Workers’ Site visits to workers’ homes and interviews with their
Minimum Standard of Housing and dependents revealed their general satisfaction with their Amenities Act 1990 (Act 446) or above, housing conditions and amenities. The type of housing where no such public facilities are provided were semi concrete and wooden and noted to available or accessible (not applicable to smallholders). meet the regulatory requirements. Housing, electricity and water supply Minor Compliance Workers are given a small patch of land to grow vegetables/fruit trees and keep poultry around their houses in order to reduce the cost of living. The workers staying in the estate are provided with subsidized electricity supply with 24 hour electricity supply. Drinking water is supplied by the POM which is analysed monthly and meets the Drinking water quality set by the Ministry of Health. Domestic water for cleaning comes from treated pond water which is supplied to the workers housing areas. Weekly line-site inspections are also carried out, i.e. At Kg. Sertik, weekly inspection was carried out at the
smallholders housing areas. In all the estates, rubbish collection is scheduled at least twice a week. A NCR was issued on the following: At the POM and estates housing areas, the compound NCR: 11 of 18 - was found to be littered with rubbish and not properly Minor managed. There was no record to evidence
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monitoring as required by the PMU procedure or the regulatory requirements as follow: “Workers’ Minimum Standards of Housing and Amenities Act 1990” requires weekly inspection of workers’ housing. It shall be the duty of the employer of a place of employment where workers and their dependents are provided with housing accommodation to ensure that : (a) the area surrounding the workers’ housing is kept clear of undergrowth and maintained in a clean and sanitary condition; (b) the perimeter drains around each dwelling or block of dwellings including all outlet drains are kept in a good state of repair and clear of refuse or undergrowth to permit free flow of water;
Schools The local staff and workers’ children between 5 to 6 years old attend Tadika Kemas kindergartens which are provided free of charge. Onsite visit to a kindergarten showed cheerful children learning in a safe environment. There were no foreign workers children at the PMU.
Sundry shops The availability of sundry shops within the estates which helped the staff and workers get their sundries nearby. From interviews with the workers in PMU it was found that most household sundries, including frozen foodstuffs were available on sale. Fresh food, such as fish, chicken, vegetable and meat are brought in by fresh food suppliers. Crèche ( Rumah Asuhan Kanak-kanak) There is no need for crèche at the estates as most of the younger children are being cared for by the extended family members. Medical clinics There was a government clinic located in the Estates. Basic medical treatment of minor ailment and first aids such as toilet and suturing (T&S) of small laceration wounds are provided. 6.5.4 Growers and millers shall make Food for the workers provided through sundry shops in Complied demonstrable efforts to monitor and where able, improve workers’ access each of the PMU estates was verified to be adequate and to adequate, sufficient and affordable affordable. food.
Minor Compliance Criteria 6.6 The employer respects the rights of all personnel to form and join trade unions of their choice and to bargain collectively. Where the right to freedom of association and collective bargaining are restricted under law, the employer facilitates parallel means of independent and free association and bargaining for all such personnel. Indicators Findings and Objective Evidence Compliance 6.6.1 A published statement in local The published statements of policy “Polisi Hak Complied languages recognising freedom of Kebebasan Bersuara & Menganggotai Kesatuan” dated association shall be available. st 1 June 2014 which recognizes the employee’s freedom Major Compliance of association, was found to be available and widely
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displayed in all notice boards of the PMU. Kesatuan Pekerja-Pekerja Felda Plantations. is a platform through which the members negotiate collectively with the management of FELDA. 6.6.2 Minutes of meetings with main The estate management had formed the JCC Complied trade unions or workers representatives shall be documented. “Jawatankuasa Kerja Minyak Sawit Mapan (JKKMSM)” as a mechanism to cater to the collective bargaining and Minor Compliance needs of the workers. The JCC meetings are held every 3 months. Records of meetings were documented, kept and available. Criteria 6.7 Children are not employed or exploited. Indicators Findings and Objective Evidence Compliance 6.7.1 There shall be documentary The PMU has a policy of not employing child labor i.e. Complied evidence that minimum age requirements are met. persons below 18 years old in accordance with Employment Act 265 as evidenced in “ Polisi Pekerja st Major Compliance Kanak-kanak” dated 1 June 2014. This policy is displayed at strategic public places. The birth date in the Identification card and birth certificate of a new employee is used as the verification for age. The implementation was verified through checks on “Senarai Maklumat Petugas Ladang”. Interviews with workers in the estates and at the Mill confirmed implementation of the stated policy. Criteria 6.8 Any form of discrimination based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation, or age, is prohibited. Indicators Findings and Objective Evidence Compliance 6.8.1 A publicly available equal The PMU has a publicly displayed documented policy on Complied opportunities policy including equal opportunities “Polisi Kesetaraan Peluang” which is identification of relevant/affected st groups in the local environment shall dated 1 June 2014. The policy stressed on non- be documented. discrimination based on race, caste, nationality, religion, gender, sexual orientation, disability/handicap, and Major Compliance union/political affiliations. However, positive discrimination for the benefit of certain society groups may be allowed after consultation. 6.8.2 Evidence shall be provided that There is a documented policy on foreign workers “Polisi Complied employees and groups including local st communities, women, and migrant Pengambilan Pekerja Asing” dated 1 June 2014. It is workers have not been discriminated publicly displayed along with other policies at strategic against. places. Compliance to relevant regulatory requirements such as Major Compliance Employment Act 1955, Immigration Act 1959/63 and Workmen’s Compensation Act 1952 are observed when recruiting workers from Indonesia and Nepal. The employment of foreign workers was implemented without affecting the opportunities for local communities. Local workers are covered under SOCSO scheme and the migrant workers are covered under Foreign Workers Compensation scheme (FWCS). Interviews with migrant workers’ dependents revealed their satisfaction with the PMU for job opportunities and they enjoy all common welfare amenities like free housing, free water and electricity supplies, medical care, and transportation of school children. They are aware of the “aduan” mechanism by which they can make any complain or request to the management. Interview with a
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women migrant workers revealed that she is a gender representative and there has been no known cases of any sexual harassment or violence against women at the field or at the housing areas. 6.8.3 It shall be demonstrated that Depending on the nature of work positions, The PMU Complied recruitment selection, hiring and promotion where relevant are based on management takes into considerations the needs for skills, capabilities, qualities, and technical qualifications/experience and related skills in medical fitness necessary for the jobs recruitment selection, hiring and promotion exercises. available. It was verified that the promotions to higher position at the estates and POM were based on evaluations which Minor Compliance considered the skill, capabilities, qualities and medical fitness of the employees. A verification of job advertisement dated September 2014 for Kerjaya di Sektor Ladang (KESIDANG) which is the briefing and interviews will be conducted on 08th Ocober 2014 The necessary qualifications and conditions were clearly stated in the job advertisement. Terms and conditions of work were spelled out in the offer letter as well. Criteria 6.9 There is no harassment or abuse in the work place, and reproductive rights are protected. Indicators Findings and Objective Evidence Compliance 6.9.1 A policy to prevent sexual and all A documented policy to prevent sexual harassment and Complied other forms of harassment and violence “Polisi Gangguan Seksual dan Keganasan” violence shall be implemented and st communicated to all levels of the dated 1 June 2014 is available and publicly displayed. workforce. Interviews with staff and workers reflected communication on harassment issue, general understanding of sexual Major Compliance harassment in the workplace and the mechanism to report an alleged sexual harassment or violence.
6.9.2 A policy to protect the The PMU’s commitment to protect the reproductive rights Complied reproductive rights of all, especially of women, shall be implemented and and rights to have a family of the workers especially communicated to all levels of the women is evidently stated in the policy to prevent sexual workforce. harassment and violence “Polisi Gangguan Seksual dan Keganasan” Major Compliance Local female staff is fully aware that they are entitled for two months paid maternity leave. Records evidenced that very women field worker who is handling agrochemicals is issued a reminder letter informing them of their responsibility to communicate with the management as soon as pregnancy is confirmed or breastfeeding is planned. The reminder letter states that alternative job that does not require agrochemical handling will be offered. The PMU confirmed that there is no pregnant or breastfeeding woman worker among all the women agrochemical handlers now. 6.9.3 A specific grievance mechanism Complaint and grievance procedures “Prosedur which respects anonymity and protects complainants where requested shall be Menangani Aduan dan Rungutan dan Polisi Pemberian Maklumat / whistle blowing” are available to manage established, implemented, and communicated to all levels of the grievances and complaints from internal and external workforce. stakeholders. Onsite audits verified that the complaint and grievance Minor Compliance procedure and whistle blowing procedure are displayed
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outside staff offices and at the public areas. Management confirmed that there has been no report of sexual harassment in the PMU so far. The briefing sessions on sexual harassment matters OBS: MNM-1 should cover all the relevant parties’ i.e. male workers and contractors. Briefing sessions on sexual harassment issues were only involving women workers. An observation was issued.
Criteria 6.10 Growers and millers deal fairly and transparently with smallholders and other local businesses. Indicators Findings and Objective Evidence Compliance 6.10.1 Current and past prices paid for Onsite audit verified that the current and past prices paid Complied Fresh Fruit Bunches (FFB) shall be publicly available. for FFB pricing were displayed at the Mill and Estate offices. Minor Compliance 6.10.2 Evidence shall be available that FFB prices were made available via FELDA POM office’s Complied growers/millers have explained FFB pricing, and pricing mechanisms for external Notice Board and mill office records. The POM FFB and inputs/services shall be has treated out-growers and other local business fairly. documented (where these are under Pricing mechanism for FFB is fair and transparent and the control of the mill or plantation). was set based on 1 % OER and FFB grading as per MPOB approved / licensed graders and based MPOB Major Compliance specification. Current and past prices paid for FFB were publicly available and verified through interviews. Mechanisms are available to the public upon request. 6.10.3 Evidence shall be available that Stakeholder interviews conducted during this assessment Complied all parties understand the contractual agreements they enter into, and that with suppliers, contractors, and relevant parties including contracts are fair, legal and local and foreign workers confirmed that understand the transparent. contractual agreements (such as terms and payment) they enter into with the PMU. They also consider the Minor Compliance business transactions as fair and transparent.
6.10.4 Agreed payments shall be made Agreed payments are made promptly 2 times a week. Complied in a timely manner. Through interviews made, there is no evidence to suggest Minor Compliance of any unfair business practices with the local businesses. Criteria 6.11 Growers and millers contribute to local sustainable development where appropriate. Indicators Findings and Objective Evidence Compliance 6.11.1 Contributions to local The PMU’s contribution towards local communities had Complied development that are based on the results of consultation with local been evidenced in several social areas and verified communities shall be demonstrated. during on site visit as follows: Provide free water and electricity supplies to all Minor Compliance kindergartens and schools in the estates Provide maintenance of public buildings whenever requested. Provided land for the building of government primary and secondary schools A plan to build a badminton court as requested by the community. Provided new housing units for employees 6.11.2 Where there are scheme It was verified that in Mempaga 1 Estates, there are 401 Complied smallholders, there shall be evidence that efforts and/or resources have been settlers, Bukit Damar Estate has 436 settlers and Kg. allocated to improve smallholder Sertik Estate has 397 settlers. All these plantations are
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Minor Compliance
Principle 7: Responsible development of new plantings KKS Mempaga PMU has documented procedures for this development but to date has not carried any new plantings after November 2005. Therefore, the requirements of Principle 7 are not applicable during this assessment.
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Principle 8: Commitment to continual improvement in key areas of activity
Criteria 8.1 Growers and millers regularly monitor and review their activities, and develop and implement action plans that allow demonstrable continual improvement in key operations. Indicators Findings and Objective Evidence Compliance 8.1.1 The action plan for continual KKS Mempaga PMU had planned & progressively Complied improvement shall be implemented, based on a consideration of the main implemented the continual improvement activities, both in oil mill & estates. social and environmental impacts and opportunities of the grower/mill, and shall Estate: Planned activities to reduce use of pesticides: include a range of Indicators covered by these Principles and Criteria. Reduce in use of paraquat (reduce gradually and stop by the end of 2017). As a minimum, these shall include, but Increase planting of beneficial plants (Turnera subulata, are not necessarily be limited to: Cassia cobanensis and Antigonon leptopus);
• Reduction in use of pesticides(Criterion 4.6); Estate: Planned activities for environment:
• Environmental impacts (Criteria 4.3, 5.1 Planting of beneficial plants. and 5.2);
• Waste reduction (Criterion 5.3); Estate: Planned activities for waste reduction: Reuse fertilizer bags; Return pesticide containers to • Pollution and greenhouse gas (GHG) suppliers; Sell off obsolete papers, steel emissions (Criteria 5.6 and 7.8);
• Social impacts (Criterion 6.1); Estate: Planned activities for preventing pollution: Segregation of disposal of waste (steel, glass, plastic & • Encourage optimising the yield of the supply base. organic)
Major Compliance Oil mill: Planned activities Reduce usage of diesel every month; Reduce BOD< 20 mg/l to final discharge; Maintain 0 incident of accident; Achieve >90% of hygiene inspection of inter-oil mill; Increase OER from 21.64%% to 22.32 %; Maintain KER around 5.33% to 5.76%; Ensure FFB >96%/month
Estate/oil mill: Planned activities for social: Repair/refurbish sport facilities & quarters; Free tuition class for school students Social To relocate the all the old housing quarters to newly build which is still on-going and to be fully completed by 3rd quarter of 2015. Felda have commenced ongoing research and development activities in order to achieve improved agricultural practices including superior strains of palm products.
3.1.1 Supply Chain Certification Standards Findings - on CPO Mill
The Supply Chain model applied at KKS MEMPAGA POM during this Main Assessment is Mass Balance– CPO Mills: MB
Details of findings are as follows:
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E.1 Documented procedures Indicators Findings and Objective Evidence Compliance E.1.1 A documented Supply Chain Procedure Doc No. Complied FGVPM-RSPO SCCS Issue 1.0 Rev 2.0 (Effective The facility shall have written procedures and/or ST work instructions to ensure the implementation of 1 Dec 2012) SOP for Mill RSPO Supply Chain all the elements specified in these requirements. Certification System has been established and This shall include at minimum the following: implemented for Module E: Mass Balance (MB) system. a) Complete and up to date procedures covering All the requirements for controlling the FFB receipt, Complied the implementation of all the elements in these processing, sale and CPO dispatch, training and requirements claims for mass balance (MB) Module for the Palm Oil Mill has been addressed in the SOP. Implementation complied with all the requirements. b) The name of the person having overall POM’s Mill Manager, Ahmad Rusuki Hamid and/or Complied responsibility for and authority over the Mr Nasir has been appointed as the person implementation of these requirements and responsible for the Supply Chain aspects of FFB compliance with all applicable requirements. This receipts, processing and shipping of CPO, PK and person shall be able to demonstrate awareness of palm products. Interview of the Mill Manager and the facilities procedures for the implementation of other relevant staff confirmed their knowledge of this standard. the RSPO Supply Chain Certification requirements for the respective areas of operations. Organization Chart and job descriptions documented.
E.1.2 The SOP covers the receiving of FFB supply from Complied The facility shall have documented procedures for the PMU estate and also from external crop receiving and processing certified and non- suppliers. All supplies of FFB were subjected to certified FFBs. verification of documents (delivery notes) and quality checks by weighbridge personnel. All Storage tanks at the POM are designated as Mass Balance (MB) CPO.
E.2 Purchasing and goods in Indicators Findings and Objective Evidence Compliance E.2.1 The Mill verifies and records tonnages and supply Complied The facility shall verify and document the volumes source of FFB received at the weighbridge in the of certified and non-certified FFBs received. delivery notes and weighbridge tickets and all FFB data are entered by the weighing clerk into the FELDA computer system or reporting spreadsheet every day. Daily and monthly reports are submitted to the Regional Office and Kuala Lumpur Head Office through the Mill Performance Report (MPR) system. Production Report for January – August 2014 is verified to be MB palm products.
Satisfactory performance of deliveries of FFB made by transport contractors, Felda Transport Services.
E.2.2 The POM has an internal monitoring and reporting Complied The facility shall inform the CB immediately if mechanism for advising the CB of production there is a projected overproduction. variations. So far, there is no projected overproduction.
E.3 Record keeping Indicators Findings and Objective Evidence Compliance
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E.3.1 Inspection of records at the Mill confirmed these Complied The facility shall maintain accurate, complete, up- were updated daily. to-date and accessible records and reports covering all aspects of these requirements. E.3.2 As per the SOP, the records are archived and to be Complied Retention times for all records and reports shall be stored for a minimum of five years. at least five (5) years.
E.3.3 Transaction documents and bookkeeping of CPO Complied The facility shall record and balance all receipts of and PK are done daily and monthly summary RSPO certified FFB and deliveries of RSPO report of FFB receipt, FFB processed, CPO certified CPO, PKO and palm kernel meal on a production, PK production and balance stocks three-monthly basis. submitted to the Regional Office and Kuala Lumpur Head Office.
The weighbridges at the Mill are duly calibrated and calibration certificates found to be in order.
There is no PKO and Palm Kernel mill at the said POM facility. PK sold and delivered to FELDA Kernel at Port Klang.
Deduction and conversion ratios for the volumes of CPO delivered from the Palm Oil Mill have been appropriately done and recorded.
All deliveries of the MB sales are from positive stock.
E.3.4 POM has prepared an appropriate stamp for the Complied The following trade names should be used and use of identification of RSPO certified CPO and specified in relevant documents, e.g. purchase PK. Documents to be stamped ‘RSPO – MB and sales contracts, e.g. *product name*/SG or appropriately for CPO and PK products. Segregated. The supply chain model used should be clearly indicated. Traceability was verified for the production reports for January – August 2014 which was verified from the related records (FFB Delivery Note, Weigh Ticket, FFB & Truck Daily Summary, Production Report, CPO Storage Report, and CPO Delivery Orders.
E.3.5 There is no such outsourcing activity done at this Complied In cases where a mill outsources activities to an POM. independent palm kernel crush, the crush still falls under the responsibility of the mill and does not need to be separately certified. The mill has to ensure that the crush is covered through a signed and enforceable agreement. E.4 Sales and good out Indicators Findings and Objective Evidence Compliance E.4.1 Items (a) to (e) are included in the company’s Complied The facility shall ensure that all sales invoices invoices, delivery note and other relevant issued for RSPO certified products delivered documents to all CPO buyers as stipulated in the include the following information: SOP for RSPO/MB module. a) The name and address of the buyer; b) The date on which the invoice was issued; Deliveries of CPO and PK made with Delivery c) A description of the product, including the Notes. Data entry into computer system or applicable supply chain model (Segregated); reporting spreadsheet. Delivery of CPO and PK
Intertek RSPO Report: Main Assessment: 29 Sep – 2 Oct 2014_Final edited
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Satisfactory performance of deliveries made by contractor, FELDA Transporters (FELDA Angkut S/B).
E.5 Training Indicators Findings and Objective Evidence Compliance E.5.1 The PMU has maintained records of training on the Complied The facility shall provide the training for all staff as Supply Chain Certification System for Mass required to implement the requirements of the Balance (MB) Module. Interview with mill Supply Chain Certification Systems. personnel confirmed their awareness of how the MB module is being implemented and maintained.
E.6 Claims Indicators Findings and Objective Evidence Compliance E.6.1 The PMU has not made any claims outside of the Complied The facility shall only make claims regarding the RSPO Rules for Communications and Claims. use of or support of RSPO certified palm oil that are in compliance with the RSPO Rules for Communication and Claims.
3.1.2 Status on Supply Chain on POM: Based on the documents and records presented during the on-site verifications made, it is concluded that the FELDA KKS Mempaga POM has been able to comply with the requirements of the RSPO SCCS under the ‘MB’ model and is thus eligible for ‘MB’ trading for its palm products for year 2015.
3.2 Status of Identified Noncompliance and Corrective Actions, Observations and Positive Elements. The status of the Noncompliances (NCR) and Observations (OBS) identified against the MYNI Compliance Indicators is as per the details below: Assessment Type Year Noncompliance (NCR) Observations (OBS)
Main Assessment 2014 18 (7 Major & 11 Minor) 4
Year 2014 – Main Assessment
NCR # MYNI Details of NCR Indicator 1 of 18 1.2.1 Date issued: 2 October 2014 -Major Nonconformance: Management documents that were not available to the public during the audit (29 September to 2nd October 2014) at the estates sampled (FELDA/FTP Kg Sertik estate, FELDA/FTP Bukit Damar estate & FELDA/FTP Mempaga 1 Estate) are as stated below: 1) Plans relating to environment and social impacts 2) Pollution prevention and reduction plans 3) Continual improvement plans
Root Cause and Corrective Action: The Estate Management had not given proper attention on the matter. The necessary management documents and plans will be prepared accordingly.
Intertek RSPO Report: Main Assessment: 29 Sep – 2 Oct 2014_Final edited
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Verification for closure: On site verification carried out. Verified that the appropriate documents and records were available to indicate implementation of the corrective actions. The corrective actions taken have satisfactorily addressed the non-conformance. NC status verified by auditor: AL / MNM Date: 10 Dec 2014 Verification (for effective closure): Next Surveillance
NCR # MYNI Details of NCR Indicator 2 of 18 2.1.3 Date issued: 2 October 2014 -Minor Nonconformance: The mechanism for ensuring compliance were not effectively implemented at 1) FELDA/FTP Kg Sertik estate, 2) FELDA/FTP Bukit Damar estate & 3) FELDA/FTP Mempaga 1 Estate) The “Evidence” column was left blank and no evidence stated in the Evaluation of Compliance Checklist sighted at the locations sampled above.
Root Cause and Corrective Action: Had not reviewed the legal compliance mechanism in the Compliance Evaluation Checklist and the relevant evidence that were required. The estate management will ensure that the Compliance Evaluation Checklist is verified by the Estate Manager, attached with the relevant evidence that are required and date them.
Verification for closure: On site verification carried out. Verified that the appropriate documents, records and photos were available to indicate implementation of the corrective actions. The corrective actions taken have satisfactorily addressed the non-conformance. NC status verified by auditor: AL / MNM Date: 10 Dec 2014 Verification (for effective closure): Next Surveillance
NCR # MYNI Details of NCR Indicator 3 of 18 5.1.2 Date issued: 2 October 2014 -Minor Nonconformance: No (Environmental Management) Plan available during audit to comply with 5.1.2 & 5.1.3 for the estate sampled below: 1)FELDA/ FTP Kg Sertik estate, 2) FELDA/FTP Bukit Damar estate & 3) FELDA/FTP Mempaga 1 Estate) Need to have a plan to comprehensively cover the requirements stated above and based on the environmental impact assessment conducted for the respective estates.
Intertek RSPO Report: Main Assessment: 29 Sep – 2 Oct 2014_Final edited
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Root Cause and Corrective Action: The management did not have a comprehensive plan based on the environment impact assessment that was conducted for each estates respectively to cover the requirements mentioned above.
The estate management will ensure that comprehensive plans are established to incorporate all the requirements stated above and are based on the environment impact assessment conducted for the respective estates.
Verification for closure: Corrective action plan and supporting evidences submitted i.e. records & photographs, found to satisfactorily address the nonconformance. NC status verified by auditor: AL / MNM Date: 10 Dec 2014 Verification (for effective closure): Next Surveillance
NCR # MYNI Details of NCR Indicator 4 of 18- 5.2.4 Date issued: 2 October 2014 Minor Nonconformance: No (Action) Plan created/available during audit to demonstrate ongoing monitoring on the status of RTE species and HCV(s) for the estate sampled below: 1)FELDA/ FTP Kg Sertik estate, 2) FELDA/FTP Bukit Damar estate & 3) FELDA/FTP Mempaga 1 Estate) Need to demonstrate implementation of findings based on the HCV Identification, HCV Management Plan & Biodiversity dated 30th August 2014 conducted for Complex Mempaga. Root Cause and Corrective Action: There were no action plan established to show continuous monitoring regarding the status of RTE species and HCV for each estates and no method of implementing the findings based on the HCV identifications for the estates. The estate management must ensure they have an action plan that that shows continuous monitoring on the status of RTE and HCV for each of the estates. In addition, the plan must ensure that the findings on the identified HCV are implemented. Verification for closure: Corrective action plan and supporting evidences submitted i.e. records & photographs, found to satisfactorily address the nonconformance. NC status verified by auditor: AL / MNM Date: 10 Dec 2014 Verification (for effective closure): Next Surveillance
NCR # MYNI Details of NCR Indicator 5 of 18 5.3.2 Date issued: 2 October 2014
Intertek RSPO Report: Main Assessment: 29 Sep – 2 Oct 2014_Final edited
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- Major Nonconformance: Lack of evidence that all chemicals and their containers were disposed responsibly i.e. as scheduled waste for the estates sampled 1) FELDA/ FTP Kg Sertik estate, 2) FELDA/FTP Bukit Damar estate & 3) FELDA/FTP Mempaga 1 estate No scheduled waste identified at the estates. Root Cause and Corrective Action: 1. Less attention paid by estate management on the need to monitor the areas that are managed by the settlers themselves. 2. Lack of enforcement by the estate management on the handling and storage of Poison and poison containers. The Agriculture Officer and SHO from the Regional Office will visit periodically and check the records, poison and poison containers management. Verification for closure: On site verification carried out. Verified that the appropriate documents and records were available to indicate implementation of the corrective actions. The corrective actions taken have satisfactorily addressed the non-conformance. NC status verified by auditor: AL / MNM Date: 10 Dec 2014 Verification (for effective closure): Next Surveillance
NCR # MYNI Details of NCR Indicator 6 of 18 5.3.3 Date issued: 2 October 2014 - Minor Nonconformance: Lack of evidence that waste management and disposal plan implemented to avoid or reduce pollution as follows: 1) FELDA/FTP Bukit Damar estate i.e. workers quarters area 2) FELDA/FTP Mempaga 1 estate i.e. open dumping and noted waste littered from the main road to the open dump, near the workers quarters, strong odour etc & 3) KKS Mempaga POM noted canteen waste openly dumped at the boundary of mill The condition above is not consistent with the requirements 4.6 ML -1A/L3-GP6(0) Mac 2012 Root Cause and Corrective Action: Lack of documented evidence that waste disposal and management was implemented to avoid or reduce pollution for the mill and estate(s) audited. The mill and estates will continuously ensure the monitoring of waste disposal and management properly. Verification for closure: Corrective action plan and supporting evidences submitted i.e. records & photographs, found to satisfactorily address the nonconformance. NC status verified by auditor: AL / MNM Date: 10 Dec 2014 Verification (for effective closure): Next Surveillance
NCR # MYNI Details of NCR Indicator 7 of 18- 6.1.1 Date issued: 2 October 2014
Intertek RSPO Report: Main Assessment: 29 Sep – 2 Oct 2014_Final edited
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Major Nonconformance: Social Impact Assessment (SIA) has not been prepared and documented for Bukit Damar estate and Mempaga 1 estate. Root Cause and Corrective Action: The management unit did not collect data (distribute the SIA survey forms) especially from interested parties nor analysed them. The estate management will monitor and check through the monthly meetings and RSPO internal audits. Verification for closure: On site verification carried out. Verified that the appropriate documents and records were available to indicate implementation of the corrective actions. The corrective actions taken have satisfactorily addressed the non-conformance. NC status verified by auditor: AL / MNM Date: 10 Dec 2014 Verification (for effective closure): Next Surveillance
NCR # MYNI Details of NCR Indicator 8 of18 - 6.1.2 Date issued: 2 October 2014 Major Nonconformance: Assessment to the internal and external stakeholders was not conducted for Mempaga 1 and numbers of sampling for the assessment conducted for Kg. Sertik was not adequate (i.e. did not include external stakeholders such as government agencies, suppliers, contractors and etc). Root Cause and Corrective Action: Assessment from internal and external interested parties not done for Mempaga 1 and inadequate sample for the assessment at Kg Sertik ( i.e. external interested parties such as government agencies, suppliers, contractor and others). 1) Conduct SIA assessment for internal and external stakeholders and designate an officer responsible for it. 2) The mill and estate management will monitor and check through the monthly meetings and RSPO internal audits. Verification for closure: On site verification carried out. Verified that the appropriate documents and records were available to indicate implementation of the corrective actions. The corrective actions taken have satisfactorily addressed the non-conformance. NC status verified by auditor: AL / MNM Date: 10 Dec 2014 Verification (for effective closure): Next Surveillance
NCR # MYNI Details of NCR Indicator 9 of 18 6.1.3 Date issued: 2 October 2014 -Major Nonconformance: There was no adequate plan been documented to avoid mitigation of negative impacts and promotion of the positive impact for KKS Mempaga (POM and Estates audited)
Intertek RSPO Report: Main Assessment: 29 Sep – 2 Oct 2014_Final edited
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Root Cause and Corrective Action: The management did not prepare an action plan to mitigate and monitor all impacts (positive and negative) especially external stakeholders 1. Review the Mitigation Plan for the external and internal stakeholders for the SIA and designate an officer responsible to implement the mitigation plans. 2. Conduct a meeting to review the actions taken based on the plans. Verification for closure: On site verification carried out. Verified that the appropriate documents and records were available to indicate implementation of the corrective actions. The corrective actions taken have satisfactorily addressed the non-conformance. NC status verified by auditor: AL / MNM Date: 10 Dec 2014 Verification (for effective closure): Next Surveillance
NCR # MYNI Details of NCR Indicator 10 of18 6.2.3 Date issued: 2 October 2014 - Minor Nonconformance: List of stakeholders and records of communications for Mempaga 1, Bukit Damar and Kg Sertik estates were not maintained appropriately. Root Cause and Corrective Action: The list of interested parties was not updated, the records incomplete and no designated officer in charge to monitor these. To ensure the list of interested parties are kept updated and to appoint an officer to be in charge to monitor any application and feedbacks received weekly. Verification for closure: Corrective action plan and supporting evidences submitted i.e. records & photographs, found to satisfactorily address the nonconformance. NC status verified by auditor: AL / MNM Date: 10 Dec 2014 Verification (for effective closure): Next Surveillance
NCR # MYNI Details of NCR Indicator 11 of 6.5.3 Date issued: 2 October 2014 18 - Minor Nonconformance: At the POM and estates housing areas, the compound was found to be littered with rubbish and not properly managed. There was no record to evidence proper monitoring as required by the PMU procedure or the regulatory requirements as follow: “Workers’ Minimum Standards of Housing and Amenities Act 1990” requires weekly inspection of workers’ housing. It shall be the duty of the employer of a place of employment where workers and their dependents are provided with housing accommodation to ensure that : (a) the area surrounding the workers’ housing is kept clear of undergrowth and maintained in a clean and sanitary condition; (b) the perimeter drains around each dwelling or block of dwellings including all outlet drains are kept in a good state of repair and clear of refuse or undergrowth to permit free flow of water;
Intertek RSPO Report: Main Assessment: 29 Sep – 2 Oct 2014_Final edited
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Root Cause and Corrective Action: No designated officer responsible to inspect housing and line site. Every scheme/estate will appoint an officer to be in charge for inspection of housing/hostels and line site. Verification for closure: Corrective action plan and supporting evidences submitted i.e. records & photographs, found to satisfactorily address the nonconformance. NC status verified by auditor: AL / MNM Date: 10 Dec 2014 Verification (for effective closure): Next Surveillance
NCR # MYNI Details of NCR Indicator 12 of18 4.1.3 Date issued: 2 October 2014 -Minor Nonconformance: On the 3 Estates audited, the name of the chemical and the quantity of it used daily had not been recorded in the daily spraying record book. It would be difficult for the management to check on the total amount of the chemical used and the name of the chemical might not be remembered after some time. Root Cause and Corrective Action: Lack of concern by the estate management on the need to record and monitor the chemical name and quantity of chemicals used. An officer will be appointed to be responsible for recording the chemical name and quantity of chemical consumed.
Verification for closure: Corrective action plan and supporting evidences submitted i.e. records & photographs, found to satisfactorily address the nonconformance. NC status verified by auditor: AL / MNM Date: 10 Dec 2014 Verification (for effective closure): Next Surveillance
NCR # MYNI Details of NCR Indicator 13 of 4.2.3 Date issued: 2 October 2014 18 - Minor Nonconformance: The areas under Felda management (the individual scheme smallholders) had not been sampled annually and they would have to request if they wanted sampling to be carried out, or they just followed and used the fertilizers recommended for the Felda Techno Plant areas. However, leaf and soil sampling and analysis had been carried out on the areas under the management of Felda Techno Plant. Root Cause and Corrective Action:
Individual scheme smallholders did not carry out leaf and soil sampling.
The estate managers should help in the application process for the individual scheme smallholders to conduct leaf and soil analysis/sampling.
Intertek RSPO Report: Main Assessment: 29 Sep – 2 Oct 2014_Final edited
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Verification for closure: Corrective action plan and supporting evidences submitted i.e. records & photographs, found to satisfactorily address the nonconformance. NC status verified by auditor: AL / MNM Date: 10 Dec 2014 Verification (for effective closure): Next Surveillance
NCR # MYNI Details of NCR Indicator 14 of 4.2.4 Date issued: 2 October 2014 18- Minor Nonconformance: On Mempaga 1, Estate F 1 and F 17, and Kg. Sertik F 1, EFB application along the inter-rows of mature palm was up to 3 to 4 layers. This is contrary to the SOP which states that EFB should be spread in 1 layer along the inter-rows. Most of the EFB had been heaped there for 2 to 3 months before they were spread in the inter-rows.
Root Cause and Corrective Action: EFB were arranged inter-rows of mature palm up to 3-4 layers which contradicted the SOP which states that EFB should be spread in 1 layer along the inter-rows. The estate management will ensure that all EFB arrangements that contradicted the SOP will be rearranged and spread in a layer along the inter-rows. Verification for closure: Corrective action plan and supporting evidences submitted i.e. records & photographs, found to satisfactorily address the nonconformance. NC status verified by auditor: AL / MNM Date: 10 Dec 2014 Verification (for effective closure): Next Surveillance
NCR # MYNI Details of NCR Indicator 15 of 4.3.2 Date issued: 2 October 2014 18- Minor Nonconformance: On Kg. Sertik Estate Div. 1, the planting terraces did not have back incline and stop bunds along the terraces. These were contrary to the SOP of Felda on terrace construction. Root Cause and Corrective Action: The planting terraces did not have back incline and stop bunds along the terraces. These were contrary to the SOP of Felda on terrace construction. The estate manager will ensure that planting terraces have back incline and stop bunds along the terraces. Verification for closure: Corrective action plan and supporting evidences submitted i.e. records & photographs, found to satisfactorily address the nonconformance. NC status verified by auditor: AL / MNM Date: 10 Dec 2014 Verification (for effective closure): Next Surveillance
NCR # MYNI Details of NCR Indicator
Intertek RSPO Report: Main Assessment: 29 Sep – 2 Oct 2014_Final edited
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16 of 4.4.2 Date issued: 2 October 2014 18- Major Nonconformance: 1) On Bukit Damar Estate F2, there was no marking of buffer zone and boundaries for the stream running across the field. 2) On Mempaga 1 Estate F 11, there was a sign board showing the buffer zone for Sg. Mempaga, but no demarcation of the boundaries. There was evidence of chemical spraying on shrubs growing next to the river. Root Cause and Corrective Action: No attempt noted to mark the buffer zones. The management must proof and ensure adequate measures are in place to protect the buffer zones along the streams.
Verification for closure: On site verification carried out. Verified that the appropriate documents and records were available to indicate implementation of the corrective actions. The corrective actions taken have satisfactorily addressed the non-conformance. NC status verified by auditor: AL / MNM Date: 10 Dec 2014 Verification (for effective closure): Next Surveillance
NCR # MYNI Details of NCR Indicator 17 of 4.6.11 Date issued: 2 October 2014 18- Major Nonconformance: All the estates audited had not carried out medical surveillance for the operators handling chemicals in 2014.
Root Cause and Corrective Action: Annual Medical Surveillance for the operators handling chemicals not done as scheduled. All managers must ensure that operators handling chemicals receive their annual medical surveillance as scheduled. Verification for closure: On site verification carried out. Verified that the appropriate documents and records were available to indicate implementation of the corrective actions. The corrective actions taken have satisfactorily addressed the non-conformance. NC status verified by auditor: AL / MNM Date: 10 Dec 2014 Verification (for effective closure): Next Surveillance
NCR # MYNI Details of NCR Indicator 18 of18 4.7.5 Date issued: 2 October 2014 -Minor Nonconformance: On Kg. Sertik Estate, there were no First Aid Kits with the harvesting gang and the workers working at the oil palm nursery.
Intertek RSPO Report: Main Assessment: 29 Sep – 2 Oct 2014_Final edited
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Root Cause and Corrective Action: The estate management did not provide First Aid Kits for the harvesting gang and the workers working at the oil palm nursery. Monthly checking and inspection will be conducted by FGVPM’s and FELDA’s OSH Officers and periodic monitoring by the estate manager. Verification for closure: Corrective action plan and supporting evidences submitted i.e. records & photographs, found to satisfactorily address the nonconformance. NC status verified by auditor: AL / MNM Date: 10 Dec 2014 Verification (for effective closure): Next Surveillance
3.2.1 Summary of Observations: The 4 Observations (OBS) identified during this assessment are as per below. Note: The progress made on the observations listed will be reviewed during the subsequent surveillance assessment on the action and implementations taken. Year 2014 – Main Assessment (4 Observations) Status Ref MYNI Opened Closed Follow up Location Details of Observation No: Indicator date date remarks (if any) OBS: 4.8.2 All the 3 The estates had yet to complete 2 Oct CFK-1 estates the records of training for each 2014 audited. employee. The palm oil mill had the records prepared.
OBS: 6.9.1 PMU – Mill The briefing sessions on sexual 2 Oct MNM-1 & Estates harassment matters could be 2014 covered all the relevant parties’ i.e. male workers and contractors. Briefing sessions on sexual harassment issues were only involving women workers.
OBS: 1.2.1 Felda Kg Noted that “Syarat Nyata” in the 2 Oct TSV-1 Sertik land titles sighted at Kg,Sertik 2014 estate estate indicated “Tanaman Getah Sahaja”. This should be changed to reflect current status as oil palm plantation.
OBS: 5.6.2 PMU – Mill Plans to reduce or minimise 2 Oct TSV-2 & Estates GHG emissions to be formulated 2014 and made available in 2015.
3.2.2 Identified Positive Elements 1. KKS Mempaga has been providing proper infrastructure such as road access to and social amenities such as grocery stores, Tadika KEMAS, government medical clinics, sports facilities and hall (Dewan) for social events such as weddings etc.
Intertek RSPO Report: Main Assessment: 29 Sep – 2 Oct 2014_Final edited
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2. The PMU reflecting the CSR of the FELDA Group do provide financial contributions during local festivals and religious functions to the local community when needed.
3.3 Feedback Raised by Stakeholders and Findings
Intertek had obtained some written and verbal feedback from the stakeholders on the environmental and social performance of KKS Mempaga operations in the course of assessment and consultations. During the Main Assessment, all pertinent feedback issues were reviewed and followed up for verification and these had been accordingly incorporated into the report findings. See table below:
Stakeholders’ Feedback PMU Response Intertek verification / Further action comment on further from PMU (if any) action (if any) Government Agencies Comunication done via email on 17th July 2014 . See list No response needed No response needed. Nil under para 2.5.
No feedback received. Non-Governmental
Organizations Comunication done via email on 17th July 2014. See list No response needed No response needed. Nil under para 2.5. No feedback received. Local Communities Comunication done via email on 17th July 2014. See list under para 2.5.
A total of 15 stakeholders [ ie comprising Local committee (GPW) – 3 nos, Contractors – 1 nos, Settlers/local community – 6 nos, FFB Supplier to Mill – Nil, Local community (School & Clinics) – inclusive, Government agencies (Auxilliary Police, Firefighters) – 1 nos and Employees / workers – 4] has been interviewed during the on-site assessment. Response received include: 1. Housing for the 2nd Verified during on-site Follow up during generation of Felda Stakeholders’ feedback and assessment that the ASA-01 settlers concerns has been addressed PMU has partly and ongoing improvement will addressed the issues 2. Better control of the cows be monitored accordingly. raised by the Follow up during farmed by the settlers to Stakeholders. ASA-01 avoid road accident See report details under P&C 4, 5, 6 & 8) 3. Main road condition could Follow up during be further improved ASA-01
Other Interested parties Comunication done via email on 17 July 2014. See list under No response needed No response needed. Nil para 2.5. No feedback received.
Intertek RSPO Report: Main Assessment: 29 Sep – 2 Oct 2014_Final edited
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4.2 Intertek RSPO Certificate details for KKS MEMPAGA Grouping
Certificate No: RSPO 930188 Issue date: Pending Certificate decision Expiry date: Pending Certificate decision Organization Felda Global Ventures Plantations (Malaysia) Sdn Bhd Address of Head Office: Felda Global Ventures Plantations (Malaysia) Sdn Bhd (FGVPM), Plantation Sustainability and Quality Management (PSQM) Department, Menara Felda Plantinum Park, Level 20 No 11 Persiaran KLCC, 50088 Kuala Lumpur, Malaysia. RSPO Membership No: 1-0013-04-000-00 Plantation Management Unit: KKS Mempaga Grouping Address of POM: Kilang Sawit Mempaga, 28600, Karak, Pahang Darul Makmur, Malaysia Standards: RSPO Principles and Criteria (April 2013); Malaysian National Interpretation (November 2010); RSPO Supply Chain Certification Standards (November 2011) for the Palm Oil Mill. Certification scope: Production of Crude Palm Oil and Palm Kernels Supply Chain model for Mass Balance (MB) CPO & PK:
Details of the Mill and Supply bases covered by this certificate and the tonnage approved are: GPS Reference Name Address Latitude Longitude Kilang Sawit Mempaga, 28600, KKS Mempaga (POM) Karak, Pahang Darul Makmur, 3°31'38.00"N 101°58'49.00"E (Capacity: 45 mt/hr) Malaysia Felda Kampung Sertik, Wakil Pos FELDA Kg Sertik estate Kg. Sertik, 28610 Karak, Pahang 3°30'08.00"N 102°01'47.00"E Darul Makmur, Malaysia Felda Lakum, 28500 Lanchang, FELDA Lakum estate 3°31'54.00"N 102°04'39.00"E Pahang Darul Makmur, Malaysia Felda Bukit Damar, 28500 FELDA Bukit Damar estate Lanchang, Pahang Darul Makmur, 3°30'15.00"N 102°06'51.00"E Malaysia Felda Mempaga 1, 28600 Karak, FELDA Mempaga 1 estate 3°32'14.50"N 101°57'56.80"E Pahang Darul Makmur, Malaysia Felda Mempaga 2, 28600 Karak, FELDA Mempaga 2 estate 3°32'48.00"N 101°57'14.00"E Pahang Darul Makmur, Malaysia Felda Mempaga 3, 28600 Karak, FELDA Mempaga 3 estate 3°32'57.00"N 101°57'50.00"E Pahang Darul Makmur, Malaysia
Intertek RSPO Report: Main Assessment: 29 Sep – 2 Oct 2014_Final edited
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The annual certifiable tonnages of CPO and PK production by KKS MEMPAGA Grouping from the supply base/suppliers as assessed and verified during the current Main Assessment are detailed as follows:
2013 2014 2015 POM - Actual - Actual + Projected - Projected Total Certifiable FFB 91,128 136,755 168,000 Processed (MT)
Total Certifiable CPO OER: OER: OER: 19,456 29,949 36,960 Production (MT) 21.35% 21.90% 22.00%
Total Certifiable PK KER: KER: KER: 4,921 7,932 9,744 Production (MT) 5.40% 5.80% 5.80% SCCS Model for POM MB MB MB
Intertek RSPO Report: Main Assessment: 29 Sep – 2 Oct 2014_Final edited
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Appendix A:
Qualifications of Lead Assessor and Assessment Team
Mr. Sivabalan Thavarajah (TS) – Lead Assessor / Technical Expert (Palm Oil Mill, Environment, Social, HCV area, Land Use and Supply Chain) – MSc (Quality Improvement & Productivity) and BSc (Environmental Science)
Mr. Sivabalan Thavarajah is a Third Party Assessment (TPA) Lead auditor with Intertek for ISO 9001, ISO 14001, OHSAS 18001, WRAP and RCOC. He has a total of more than 15 years experience including over 8 year’s fieldwork experience in various ecosystems including plantations. He has successfully completed the IRCA accredited LAC in ISO 9001:2008, ISO 14001:2004, OHSAS 18001:2007, Requirement for Chain-of-Custody Certification (RCOC) by MTCC/ PEFC, WRAP Accredited Monitor Training and RSPO P&C MY-NI Lead Assessor courses. He has performed over 700 auditing days in quality, environmental, safety & health, WRAP (accountability and social responsibility audit), product certification and RCOC assessments in various sectors including forestry authorities and forestry research centers. He is a member of the RSPO CB Assessment team which audited several RSPO certified Plantation Management Units since 2009.
Mr. Chen Fai Kok (CFK) – Assessor / Technical Expert (Good Agriculture Practice and Integrated Pest Management) – Diploma in Agriculture
Mr. Chen Fai Kok has over 30 years work experience in the plantation sector. He has held a Senior Management role in the estate field operations including GAP and IPM. He had also served as the Branch Chairman of the Incorporated Society of Planters (ISP) in several branches for over 20 years. He has successfully completed training in Estate Management and the Intertek In House RSPO P&C, MYNI and Cambodian LI Assessor courses. He is a member of the RSPO CB Assessment team which audited several RSPO certified Plantation Management Units in since 2009.
Mr. Mohd Nazib bin Marwan (MNM) – Assessor / Technical Expert (Occupational Health & Safety and Social) – Diploma in Mechanical Engineering
Mr Mohd Nazib Marwan has over 11 years work experience in occupational safety and health sector (since 2003). He has 5 years working experience as Factories and Machinery Inspector with Department of Occupational Safety & Health Malaysia (DOSH) and earlier he has been certified with Certificate for Safety and Health Officer from National Institute of Occupational Safety and Health (NIOSH). He has successfully completed the IRCA accredited Lead Auditor Course in ISO 9001:2008, OHSAS 18001: 2007 and the Intertek In -House training on RSPO P&C and MYNI Assessor courses. He is also an ISO 9001 Lead Auditor and OHSAS 18001 auditor with Intertek, Malaysia and has performed over 400 auditing days on quality, safety and health in various sectors including palm oil industries since 2012. He is a member of the RSPO CB Assessment team which audited several RSPO certified Plantation Management Units since 2014.
Intertek RSPO Report: Main Assessment: 29 Sep – 2 Oct 2014_Final edited
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Report No.: R9301/14-1 Felda Global Ventures Plantations (Malaysia) Sdn Bhd Page 61 of 71 KKS MEMPAGA GROUPING - MAIN ASSESMENT
Appendix B:
Assessment Plan (Actual)
Date Time Assessors and Assessment Activity Asssessment Team 29/09/2014 9.00 am – Travel to KKS Mempaga grouping Palm Oil Mill (POM) Office Day 1 12.00 pm 12.00 pm - Lunch Break 2.00 pm 2.00 pm – Opening Meeting and Briefing at KKS Mempaga grouping POM Office 2.30 pm (to be attended by representatives from the Estates as well) 2.30 pm – Document Review and Assessment by all Assessors on respective RSPO P&C:1 to 8 at POM 5.00 pm TS CFK MNM Site assessment at Palm Oil Mill Site assessment at Palm Site assessment at Palm Oil P1 Transparency Oil Mill Mill P2 Laws & regulations P4 Best Practices at Mill P6 Employees, Individuals P3 Economic & Financial Viability P7 New Plantings & Communities incl. P5 Environmental , Conservation P8 Continual Gender Issues P8 Continual Improvement Improvement P8 Continual Improvement SCC for POM Review of changes for compliance to revised P&C 2013 Review of Time Bound Plan Verification for compliance with rules on partial certification 5.00 pm – Travel to Hotel & Break 6.00 pm 6.00 pm – Team Meeting and Discussion 7.00 pm
Date Time Assessors and Assessment Activity 30/09/2014 8.30 am – TS CFK MNM Day 2 12.30pm Site assessment at FELDA/FTP Site assessment at Site assessment at Mempaga 1 estate FELDA/FTP Bukit Damar FELDA/FTP Bukit Damar P1 Transparency estate estate P2 Laws & regulations P4 Best Practices at P6 Employees, Individuals P3 Economic & Financial Viability Estates & Communities incl. P5 Environmental, Conservation, P7 New Plantings Gender Issues including HCV P8 Continual P8 Continual Improvement Improvement 12.30 pm – Lunch Break 1.30 pm 1.30 pm - Continue site assessment at Continue site Continue site assessment 5.00 pm FELDA/FTP Mempaga 1 estate assessment at at FELDA/FTP Bukit Damar FELDA/FTP Bukit Damar estate estate 5.00 pm – Travel to Hotel & Break 6.00 pm 6.00 pm – Team Meeting and Discussion 7.00 pm
Date Time Assessors and Assessment Activity 01/10/2014 8.30 am – TS CFK MNM Day 3 12.30pm Site assessment at FTP Kg. Site assessment at Site assessment at Sertik estate FELDA/FTP Mempaga 1 FELDA/FTP Mempaga 1 P1 Transparency estate estate P2 Laws & regulations P4 Best Practices at P6 Employees, Individuals P3 Economic & Financial Viability Estates & Communities incl. P5 Environmental, Conservation, P7 New Plantings Gender Issues including HCV P8 Continual P8 Continual Improvement Improvement 12.30 pm – Lunch Break 1.30 pm 1.30 pm - Site assessment at FELDA/FTP Continue site Continue site assessment 5.00 pm Bukit Damar estate assessment at at FELDA/FTP Mempaga 1 P1 Transparency FELDA/FTP Mempaga 1 estate
Intertek RSPO Report: Main Assessment: 29 Sep – 2 Oct 2014_Final edited
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Report No.: R9301/14-1 Felda Global Ventures Plantations (Malaysia) Sdn Bhd Page 62 of 71 KKS MEMPAGA GROUPING - MAIN ASSESMENT
P2 Laws & regulations estate P3 Economic & Financial Viability P5 Environmental, Conservation, including HCV 5.00 pm – Travel to Hotel & Break 6.00 pm 6.00 pm – Team Meeting and Discussion 7.00 pm
Date Time Assessors and Assessment Activity 02/10/2014 8.30 am – TS CFK MNM Day 4 10.00pm Site assessment at FELDA/FTP Site assessment at FTP Site assessment at FTP Kg. Bukit Damar estate Kg. Sertik estate Sertik estate P1 Transparency P4 Best Practices at P6 Employees, Individuals P2 Laws & regulations Estates & Communities incl. P3 Economic & Financial Viability P7 New Plantings Gender Issues P8 Continual Improvement P8 Continual P8 Continual Improvement Improvement 10.00 pm – Stakeholders’ Consultation on the following categories: 12.30 pm Contractors Suppliers Transporters NGOs Government Department / Agencies Local Community Settlers, in the case of independent and organized smallholders.
12.30 pm – Lunch Break 1.30 pm 1.30 pm – Site assessment at POM or Site assessment at POM or Site assessment at POM or 2.30 pm estates as required estates as required estates as required 2.30 pm – Preparation for Closing Meeting 3.30 pm 3.30 pm - Team Meeting and Discussions with KKS Mempaga grouping Management Representative 4.00 pm 4.00 pm – Closing Meeting & Briefing at Palm Oil Mill Office 5.00 pm
Intertek RSPO Report: Main Assessment: 29 Sep – 2 Oct 2014_Final edited
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Report No.: R9301/14-1 Felda Global Ventures Plantations (Malaysia) Sdn Bhd Page 63 of 71 KKS MEMPAGA GROUPING - MAIN ASSESMENT
Appendix C-1:
Location Map of FELDA KKS Mempaga Grouping
KKS Mempaga Grouping
Intertek RSPO Report: Main Assessment: 29 Sep – 2 Oct 2014_Final edited
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Appendix C 2-1: Felda Kg Sertik estate
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Appendix C 2-2: Felda Lakum estate
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Appendix C 2-3: Felda Bukit Damar estate
Intertek RSPO Report: Main Assessment: 29 Sep – 2 Oct 2014_Final edited
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Appendix C 2-4: Felda Mempaga 1 estate
Intertek RSPO Report: Main Assessment: 29 Sep – 2 Oct 2014_Final edited
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Appendix C 2-5: Felda Mempaga 2 estate
Intertek RSPO Report: Main Assessment: 29 Sep – 2 Oct 2014_Final edited
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Appendix C 2-6: Felda Mempaga 3 estate
Intertek RSPO Report: Main Assessment: 29 Sep – 2 Oct 2014_Final edited
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Appendix D: Photographs of Assessment findings at KKS Mempaga Grouping
Mempaga 1 Estate: F 1- Heaps of EFB in the inter- Mempaga 1 Estate: F 11- Un-demarcated Buffer zone rows for more than 3 months had yet to be spread. with evidence of spraying with herbicide.
Mempaga 1 Estate: F 11- Un-demarcated Buffer zone Kg Sertik Estate: F 1- Harvester with PPE in action. with a simple buffer zone sign board.
Kg. Sertik Estate: F 1- FFB carrier with PPE picking Mempaga 1: F 17- Barn Owl box with birds in it, and loose fruits from the base of the palm. remains of rat had been sighted at the base of the box.
Intertek RSPO Report: Main Assessment: 29 Sep – 2 Oct 2014_Final edited
INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
Report No.: R9301/14-1 Felda Global Ventures Plantations (Malaysia) Sdn Bhd Page 71 of 71 KKS MEMPAGA GROUPING - MAIN ASSESMENT
Appendix E:
Time Bound Plan as submitted by FGVPM (updated in August 2014)
No Mill complexes to be audited in the respective year 2009 2010 2011 2012 2013 2014 2015 2016 1. K.Gelanggi Jengka Adela Belitong Palong Neram Krau 21 Timor 2. L. Utara 6 Jengka Lok Heng Bukit Serting Hilir Pancing Tersang 3 Besar 3. Jengka Semencu Kahang Maokil Besout Serting 8 4. L. Utara Waha Kulai Tenggaroh Keratong 1 Pasoh 4 5. Jengka B. Nitar T.Timor Keratong 2 Cini 2 18 Kepayang 6. Padang Bukit Penggeli Kechau A Keratong 3 Cini 3 Piol Mendi 7. Kemasul Lepar Kechau B Sg. Kemahang Hilir Tengi 8. Tementi Bukit Fajar Keratong 9 Chalok Sagu Harapan 9. Triang Baiduri Mempaga Aring A Ayu 10. Embara. Aring B Budi 11. Lancang. Kertih Kemudi 12. Kalabakan Selendang
13. Umas Ciku
14. Kemudi. Sampadi Sakti 15. Mercu Puspita 16. Nilam Permata 17. Hamparan Badai 18. Jerangau Barat 19. Jerangau Baru 20. Selancar 2A 21. Selancar 2B New 2 6 9 9 9 21 14 Total 2 8 17 26 35 56 70
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Intertek RSPO Report: Main Assessment: 29 Sep – 2 Oct 2014_Final edited