Sime Darby Plantation Sdn Bhd RSPO Membership No: 1-0008-04-000-00 Plantation Management Unit SOU 16 Kok Foh Bahau (N

Sime Darby Plantation Sdn Bhd RSPO Membership No: 1-0008-04-000-00 Plantation Management Unit SOU 16 Kok Foh Bahau (N. Sembilan) and Gemas (Johor), Malaysia

Public Summary Report

Report No.: R9281/12-3 Sime Darby Plantation Sdn Bhd (SOU 16 Kok Foh: ASA-03)

ANNUAL SURVEILLANCE ASSESSMENT (ASA-03)

ON RSPO CERTIFICATION

PUBLIC SUMMARY REPORT

SIME DARBY PLANTATION SDN BHD

RSPO Membership No: 1-0008-04-000-00

PLANTATION MANAGEMENT UNIT SOU 16 Kok Foh Bahau (N. Sembilan) and Gemas (Johor), Malaysia

Certificate No: RSPO 928188 Issued date: 7 July 2012 Expiry date: 6 July 2016 (Note: Original Cert. No: C819157CU-RSPO-01.2011 was issued by Control Union Certification on 7 July 2011 and valid until 6 July 2016)

Assessment Type Assessment Dates Initial Certification 18-19 May 2009 (by Control Union Certification) (Main Assessment) Annual Surveillance Assessment (ASA-01) cum Transfer 18-22 June 2012 (by Intertek Certification International) Annual Surveillance Assessment (ASA-02) 10-14 June 2013 Annual Surveillance Assessment (ASA-03) 20-23 May 2014 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

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TABLE OF CONTENTS

Section Content Page No 1.0 SCOPE OF SURVEILLANCE ASSESSMENT 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 6 1.5 Summary of Land Use – Conservation and HCV Areas 7 1.6 Other certifications held and Use of RSPO Trademarks 7 1.7 Organizational information/contact person 7 1.8 Tonnages Verified for Certification 8-9 1.9 Time Bound Plan 9 1.10 Abbreviations Used 10 2.0 ASSESSMENT PROCESS 2.1 Assessment Methodology, Plan & Site Visits 11 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 12 3.0 ASSESSMENT FINDINGS 3.1 Summary of findings 13 3.2 Status of Identified Noncompliance and Corrective Actions, Observations and 13 Identified Positive Elements 3.3 Feedback Raised by Stakeholders and Findings 13 4.0 ASSESSMENT CONCLUSION AND RECOMMENDATION 4.1 Acknowledgement of Internal Responsibility and Confirmation of Assessment Findings 14

4.2 Intertek RSPO Certification details for SOU 16 Kok Foh 15-16

APPENDICES Appendix A Assessment Plan 17-18 Appendix B Maps of location – Mill, Estates, Conservation and HCV areas 19-28

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1.0 SCOPE OF ANNUAL SURVEILLANCE ASSESSMENT (ASA-03)

1.1 Introduction 1.1.1 This Public Summary Report is the abridged version of the Annual Surveillance Assessment (ASA-03) Report prepared for public notification, taking into consideration the protection of confidential and sensitive information of the client organization, which is consistent with the guiding principle specified by RSPO Certification System Standard. In the event, stakeholders, who require further details or clarification on any part of the content of the Public Summary Report, may contact RSPO Secretariat or Intertek Certification International. The full version of the assessment report has been submitted to RSPO Secretariat. 1.1.2 This Annual Surveillance Assessment (ASA-03) was conducted on the Strategic Operating Unit (SOU) 16 Kok Foh of Sime Darby Plantation Sdn. Bhd. (SDPSB), from 20 to 23 May 2014, to assess the organization’s operations of the mill and its supply bases, for continued compliance against the RSPO Principles and Criteria (Apr 2013), Malaysian National Interpretation (MY- NI, Nov 2010) and RSPO Supply Chain Certification Standard (Nov 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 is in-progress of updating necessary changes required.

Note: Sime Darby’s, Strategic Operating Unit (SOU) or management unit is equivalent to a certification unit as defined in the RSPO Certification Systems document. Each SOU consists of one palm oil mill and its supply base which is mainly made up of estates owned by SDPSB and may include some outside crop producers (OCP)

1.2 Location (address, GPS and map) of palm oil mill and estates SOU 16 consists of one (1) palm oil mill, namely Kok Foh Palm Oil Mill and eight (8) own supplying 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 B. Table 1: Address of Palm Oil Mill, Estates and GPS Location

GPS Reference Name Address Latitude Longitude Kok Foh POM Kok Foh Palm Oil Mill, 72109 Bahau, Negeri 2°47.08’ N 102°30.25’ E (Capacity: 40 MT/hour) Sembilan, Malaysia Kok Foh estate, 72109 Bahau, Negeri 1. Kok Foh estate 2°47.08’ N 102°30.25’ E Sembilan, Malaysia 2. Sg. Senarut estate Sg. Senarut estate, 85100 Batu Anam, 2°34.16’ N 102°45.20’ E Johor, Malaysia 3. Muar River estate Muar River estate, Locked Bag No.503, 2°34.26’ N 102°45.08’ E 85009 Segamat, Johor, Malaysia 4. Pertang estate Pertang estate, 72300 Simpang Pertang, 2°57.25’ N 102°18.12’ E Negeri Sembilan, Malaysia 5. Sg. Gemas estate Sg. Gemas estate, 73400 Gemas, Johor, 2°34.73’ N 102°38.86’ E Malaysia 6. Bukit Pilah estate Bkt Pilah estate, 73500 Rompin, Negeri 2°33.73’ N 102°55.91’ E Sembilan, Malaysia. 7. St. Helier estate St. Helier estate, 72100 Bahau, Negeri 2°33.72’ N 102°33.73’ E Sembilan, Malaysia 8. Sg. Sabaling estate Sg. Sabaling estate, 72100 Bahau, Negeri 2°50.56’ N 102°29.03’ E

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Sembilan, Malaysia.

1.3 Description of supply base (fruit sources) The main supply base i.e. FFB sources to the POM at SOU 16 Kok Foh PMU are from the abovementioned 8 estates which are owned by SDPSB. The POM also received FFB diverted from estates of other certified SOUs of SDPSB. SOU 16 Kok Foh also receive FFB from other independent suppliers/smallholders known as Outside Crop Producers (OCP). The supply of FFB from the OCP has been categorized as non-certified FFB. Note: Progress of the 3 year implementation plan towards compliance with the relevant RSPO standards for the OCP has been monitored by SDPSB. SDPSB confirmed that their OCP were not yet prepared for compliance.

Details of the planted hectarage for the FFB supply for SOU 16 are as shown in Table 2 below.

Table 2: Estate Area Summary - FY Jul 2013 / Jun 2014 Area Summary (ha) – FY Jul 2013 / Jun 2014 Estate Planted Area - Oil Palm Planted Area – Rubber Certified Area (ha) (ha) (ha) Kok Foh estate 2,307.85 2,166.00 0 (Assessed in ASA-01 & 03)

Sg. Senarut estate 1,988.77 557.69 1,213.68 (Assessed in ASA-02) Muar River estate 1,596.94 1,471.21 0 (Assessed in ASA-01 & 03) Pertang estate 1,070.52 749.14 234.18 (Assessed in ASA-02) Sg. Gemas estate 970.61 879.31 0 (Assessed in ASA-02) Bukit Pilah estate 3,667.31 795.03 2,762.96 (Assessed in ASA-01) St. Helier estate 1,992.65 955.95 956.15 (Assessed in ASA-02)

Sg. Sabaling estate 124.66 1,129.05 (Assessed in ASA-01 & 03) 1,321.35 Total: 14,916.00 7,698.99 6,296.02 Percentage: 100% 51.62% 42.21%

*Note: A GPS re-survey exercise was done last year, 2013 and the Estates have started using new GPS survey hectarages that have slight variance compared to previous year data.

Notes: 1. This surveillance assessment covered the overall land use for both oil palm and rubber plantation areas, and the identified Conservation areas including HCV areas marked out at the selected estates.

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2. The estates sampled for this surveillance 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. 3. Substantial portions of the certified areas at several estates such as at Bukit Pilah, St.Helier and Sg. Sabaling estates have been originally cultivated as rubber trees plantation areas since 1982 and remain as such with smaller areas cultivated with oil palms at later stages since 1988. Currently the oil palm plantation area is about 52% of the total certified area.

1.4 Summary of plantings and cycle The 8 estates had been developed beginning from 1982 and are all currently in the 2 nd cycle of planting for the Oil Palms. The age profile is as shown in Table 3.

Table 3: Age Profile of Planted Oil Palm (FY Jul 2013 / Jun 2014) Mature OP Immature OP Estate Name Year of Planting Cycle of Planting - Above 3 years - 3 years & below (ha) (ha) Kok Foh estate 1995-2002 2nd 2,166.00 - Sg. Senarut estate 2001-2006 2nd 557.69 - Muar River estate 2011-2014 2nd 1,186.52 284.69 Pertang estate 2013 2nd 681.84 67.30 Sg. Gemas estate 1996-2001 2nd 879.31 - Bukit Pilah estate 1989-2011 2nd 780.71 14.32 St. Helier estate 1984-2011 2nd 773.83 182.12 Sg. Sabaling estate 2004 2nd 124.66 -

Total 7,150.56 548.43 Note: There has been no New Planting in any of the 8 estates at the certified areas since Nov 2005.

1.5 Summary of Conservation and HCV Areas The summary of Conservation and HCV Areas as identified in SOU 16 Kok Foh during this ASA-03 Assessment in 2014 is as shown in Table 4 below:

Table 4: Conservation and HCV Areas

# Statement of Land Use (Ha) FY 2012/2013 FY 2013/2014 (ASA-02) (ASA-03) Hectarage (ha) Hectarage (ha) 1 Planted Area (ha) – Oil Palm - Mature 7,200.12 7,150.56 - Immature 583.61 548.43 2 Conservation Area (ha) - comprising buffer zones along small streams, hilly 114.20 114.50 areas, swampy and unplantable areas

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3 HCV Area (ha) - comprising buffer zones near forest reserves, water 22.75 39.04 catchments, burial & religious sites

*Note: A GPS re-survey exercise was done last year, 2013 and the Estates have started using new GPS survey hectarages that have slight variance compared to previous year data.

1.6 Other certifications held and Use of RSPO Trademarks SOU 16 Kok Foh had received 5S certification from the Malaysian Productivity Centre (MPC) in March 2012.

1.6.1 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

At Head Office: Name: Sabarinah Marzuky Designation: Head In-charge, RSPO & Certifications Unit, PSQM Department Full Address: PSQM Level 3A, Plantation Tower, No. 2, Jalan PJU 1A/7, Ara Damansara, 47301 Petaling Jaya, Selangor Tel: 03-7848 4388

At SOU 16 Kok Foh: Mr. Ghazali bin Said SOU 16 Kok Foh Palm Oil Mill Manager Sime Darby Plantation Sdn Bhd SOU 16 Kok Foh 72109 Bahau, Negeri Sembilan. Tel: 606 457 7833 Fax: 606 457 7018 Email: [email protected]

1.8 Tonnages Verified for Certification

The breakdown of all the suppliers and their tonnages of FFB supplied to the POM at SOU 16 Kok Foh based on the reporting period for FY July 2013- June 2014 are as follows:

# Estate /Supplier FFB Processed (MT) Main Receiving Mill Certified By A.1 Kok Foh Estate 56,899.65 Kok Foh POM Intertek A.2 Sg. Senarut Estate 14,558.17 Kok Foh POM Intertek A.3 Muar River Estate 26,152.22 Kok Foh POM Intertek A.4 Pertang Estate 16,920.64 Kok Foh POM Intertek A.5 Sg. Gemas Estate 24,770.81 Kok Foh POM Intertek A.6 Bukit Pilah Estate 12,713.05 Kok Foh POM Intertek A.7 St. Helier Estate 14,181.76 Kok Foh POM Intertek A.8 Sg. Sabaling Estate 3,483.80 Kok Foh POM Intertek SOU 16 ESTATES TOTAL 169,680.10

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Kempas POM SIRIM B.1 Kemuning (Diversion from SOU 17) 1,037.31 (SOU17) Sua Betong (SOU15) SGS B.2 Bradwall (Diversion from SOU 15) 174.92 POM Sua Betong (SOU15) SGS B.3 Sengkang (Diversion from SOU 15) 445.36 POM Sua Betong (SOU15) SGS B.4 Tampin Linggi (Diversion from SOU 15) 1,052.86 POM Other SDPSB SOU Estates Total 2,710.45 Sub-Total (SOU’s of SDPSB) 172,390.55 C.1 CHEONG WING CHAN 19,681.71 Subject to contractual agreements with

C.2 SERN LEE 12,774.92 various POMs Subject to contractual ENG HUAT LATEX (DIVERSION FROM C.3 1706.16 agreements with SOU 17) various POMs Subject to contractual SRI MAJU BAJA (DIVERSION FROM C.4 817.57 agreements with SOU 17) various POMs Sub-total Other Suppliers - (OCP) 34,980.36 Grand total 207,370.91

Total annual volumes / tonnages of FFB supplied from the supply base to SOU 16 POM during the previous assessment period, current surveillance assessment ASA-03 period and projected period are as follows:

FFB Processed in FFB Processed in Current FFB Processed for Previous Financial Year Financial Year Jul 2013 / Next Year Financial Year Estate / Supplier Jul 2012 / Jun 2013 Jun 2014 Jul 2014 / Jun 2015 - Projected MT % MT % MT % SOU 16 Estates 162,493.93 78.96 169,680.10 81.82 169,436.04 80.17 Other SDPSB Estates 14,211.52 6.91 2,710.45 1.31 18,920.20 8.95 Other Suppliers (OCP) 29,078.42 14.13 34,980.36 16.87 23,000 10.88 Total 205,783.87 100 207,370.91 100 211,356.24 100 * SCCS Model for POM MB MB MB

The certifiable tonnages of CPO and PK production by SOU 16 from the supply base/suppliers as assessed and verified during the current surveillance (based on 2013/14 data) and projected figures for 2014/15 are detailed as follows:

Previous Financial Year Current Financial Year Jul Next Year Financial Year Kok Foh POM Jul 2012 / Jun 2013 2013 / Jun 2014 Jul 2014 / Jun 2015 Actual - Actual + Projected (2 mths) - Projected Total FFB 176,705.45 172,390.55 188,356.24 Processed (MT)

Total CPO 39,352.30 OER: 38,132.79 OER: 41,193.51 OER:

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Production (MT) 22.27% 22.12% 21.87% Total PK 9,400.73 KER: 9,533.20 KER: 10,303.09 KER: Production (MT) 5.32% 5.53% 5.47%

* 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.

1.9 Time Bound Plan for Other Management Units

The Sime Darby Plantation Group has been a member of RSPO since 8 Sep 2004 and is committed to full compliance with the RSPO P&C and full certification in all aspects of its operations. Sime Darby Plantation Sdn Bhd (SDPSB) owns and operates 62 palm oil mills (Strategic Operating Unit – SOU) and 202 estates (as per update on 31 Mar 2012), throughout Malaysia and Indonesia which has completed its RSPO certification assessments in year 2011. For effective management and cost-efficiency, Sime Darby Plantation’s estates and mills operate within an organizational structure of strategic operation unit (SOU), zones and regions. (Source:http://www.simedarbyplantation.com/Sime_Darby_Plantation_in_Malaysia.aspx ).

Based on the due diligence conducted on SDPSB 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.

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1.10 Abbreviations Used

AMESU All Malayan Estate Staff Union MAPA Malaysian Agriculture Producers Association CHRA Chemical Health & Risk Assessment ICI Intertek Certification International Sdn Bhd CPO Crude Palm Oil MSDS Material Safety Data Sheets CSDS Chemical Safety Data Sheets MTCS Malaysia Timber Certification Scheme CSPO Certified Sustainable Palm Oil NCR Non-Conformance Report CSPK Certified Sustainable Palm Kernel NGO Non-Government Organisation CUC Control Union Certification NUPW National Union Plantation Workers EFB Empty Fruit Bunch OER Oil Extraction Rate EHS Environmental Health & Safety OHS Occupational Health & Safety EIA Environmental Impact Assessment PEFC Programme for the Endorsement of Forest Certification ETP Effluent Treatment Plant PK Palm Kernel FFB Fresh Fruit Bunch PKO Palm Kernel Oil GAP Good Agriculture Practice POM Palm Oil Mill HCV High Conservation Values POME Palm Oil Mill Effluent IPM Integrated Pest Management PPE Personal Protective Equipment ISCC International Sustainability & Carbon Certification SCCS Supply Chain Certification Standard IUCN International Union for Conservation of Nature SDPSB Sime Darby Plantation Sdn Bhd JCC Joint Consultative Committee SOCSO Social Security Insurance KER Kernel Extraction Rate SOP Standard Operating Procedures KKS Kilang Kelapa Sawit SOU Strategic Operating Unit LTA Lost Time Accidents TQEM Total Quality Environment Management

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2.0 ASSESSMENT PROCESS

2.1 Assessment Methodology, Plan and Site Visits

Since 9 Apr 2014, ICI 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 SOU 16 regarding the environmental, biodiversity, community development and other relevant issues.

From 20 to 23 May 2014, the Assessment team of ICI conducted the surveillance assessment in which 3 out of the 8 estates of SOU 16 Kok Foh grouping, namely Kok Foh estate, Muar River estate and Sg. Sabaling estate as well as the Kok Foh Palm Oil Mill were assessed for continued compliance against the RSPO requirements. 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.

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 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).

SOU 16 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 requirements. These include purchasing and goods in, record keeping, sales and goods out, monitoring and traceability of the CSPO and CSPK quantities, training for staff and claims.

After completion of the on-site field assessment, ICI also performed the evaluation of conformity against the RSPO Certification System requirements for CB. The surveillance assessment report, findings and associated documents were evaluated through an independent review and approval by the ICI Panel of Technical Reviewers prior to submission of the Public Summary Report to RSPO Secretariat.

The details of the Assessment Plan (actual on-site) are provided in Appendix A.

2.2 Date of next scheduled visit

The next scheduled visit will be the 4th Annual Surveillance Assessment (ASA-04) which will be carried out within a 12-month period of the due for annual surveillance during the certification cycle.

2.3 Qualifications of the Lead Assessor and Assessment Team

Details of the Lead Assessor and Assessment Team and summary of their competency and skill may be obtained from RSPO or Intertek Certification International.

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

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Report No.: R9281/12-3 Sime Darby Plantation Sdn Bhd (SOU 16 Kok Foh: ASA-03) 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, SDPSB and ICI. E-mails / facsimiles / letters of the same were sent to applicable stakeholders including government agencies, NGOs and local communities. Any stakeholder’s response and feedback received were followed up accordingly.

During the assessment, stakeholders who were able to be available, were interviewed and their feedbacks were recorded. Among the stakeholders who were approached were worker representatives, gender representatives; local community heads, government departments / agencies and NGOs representatives; external FFB, fertilizer suppliers and contractors.

Details on stakeholders’ feedback, PMU response and ICI 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 11. Department of Environment (Johor) 2. Department of Environment 12. Department of Forestry (Johor) 3. Department of Forestry Peninsular Malaysia 13. Department of Immigration (Johor) 4. Department of Immigration 14. Department of Irrigation & Drainage (Johor) 5. Department of Irrigation & Drainage 15. Department of Labour (Johor) 6. Department of Labour 16. Department of Occupational Safety & Health (Johor) 7. Department of Occupational Safety & Health 17. Department of Orang Asli Affairs (Johor) 8. Department of Orang Asli Affairs 18. Department of Wildlife & National Parks (Johor) 9. Department of Wildlife & National Parks 19. Land and Mines Office (Johor) 10. Royal Malaysia Police 20. Police Department (Johor)

Statutory Bodies (by emails) 21. Pertubuhan Keselamatan Sosial (SOCSO) (Johor) 25. Malaysian Palm Oil Board (MPOB) - Southern Region 22. Pejabat Buruh (Johor) 26. Malaysia Palm Oil Association (MPOA) 23. Malaysian Palm Oil Board (MPOB) 27. Malaysia Palm Oil Association (MPOA) (Johor) 24. Malaysian Palm Oil Board (MPOB) - Central Region

NGOs (by emails) 28. Malaysian CropLife & Public Health Association (MCPA) 46. Malaysian Nature Society Johor 29. Pesticide Action Network Asia and the Pacific 47. National Council of Welfare & Social Development Malaysia (PAN AP) - NCWSDM 30. All Women’s Action Society (AWAM) 48. National Union of Plantation Workers (NUPW) 31. BCSDM - Business Council for Sustainable Development in 49. Proforest - South East Asia Regional Office Malaysia 32. Center for Orang Asli Concerns COAC 50. SUARAM - Suara Rakyat Malaysia 33. Centre for Environment, Technology and Development, 51. SUHAKAM - National Human Rights Society - Persatuan Malaysia - CETDEM Kebangsaan Hak Asasi Manusia 34. EcoKnights 52. Sustainable Development Network Malaysia (SUSDEN) 35. Environmental Management and Research Association of 53. Sustainable Development Network Malaysia (SUSDEN) Malaysia (ENSEARCH) 36. Environmental Protection Society Malaysia (EPSM) 54.Tenaganita Sdn Bhd 37. Friends of the Earth, Malaysia 55. The Malaysian Forum of Environmental Journalist (MFEJ) 38. Future in Our Hands Society, Malaysia 56. TRAFFIC - the wildlife trade monitoring network 39. Global Environment Centre 57. Transparency International - Malaysian Chapter 40. Institute of Foresters, Malaysia (IRIM) 58. Treat Every Environment Special Sdn Bhd. (TrEES) 41. JERIT - Jaringan Rakyat Tertindas - Coalition of the 59. United Nations Development Programme - UNDP Malaysia Oppressed People 42. JUST - International Movement for a Just World 60. Wetlands International (Malaysia) 43. Malaysian Environmental NGOs - MENGO 61. Wild Asia Sdn Bhd 44. Malaysian National Animal Welfare Foundation - MNAWF 62. World Wide Fund for Nature (WWF) Malaysia 45. Malaysian Nature Society (MNS) Kuala Lumpur 63. UNION - AMESU 46. Malaysian Nature Society Johor 64. UNION - NUPW

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Local community (On-site interviews) 1. Worker representatives 3. Suppliers / Contractors 2. Gender representatives 4. Village Heads

3.0 ASSESSMENT FINDINGS

3.1 Summary of findings

The assessment confirmed that SOU 16 Kok Foh demonstrated compliance against Malaysian National Interpretation (MY- NI, Nov 2010) and RSPO Supply Chain Certification Standard (Nov 2011) for Palm Oil Mill and changes has been 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 is in-progress of updating necessary changes required.

3.1.1 Supply Chain Certification Standards Findings - on CPO Mill

The Supply Chain model applied at SOU 16 Kok Foh POM during this assessment is Mass Balance.

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 SOU 16 Kok Foh 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 2013/2014.

3.2 Status of Identified Noncompliance and Corrective Actions, Observations and Identified Positive Elements

All previous non-conformances and observation have been closed off. During this assessment, there was 3 Minor NCr and 3 Observations raised. The root cause and corrective action taken by the company were reviewed and these had been accordingly incorporated into the full detailed report.

Identified Positive Elements 1. The continued improvement observed through the achieved 5S Good Housekeeping Practices, Safety & Health and Kaizen implementation and maintenance activities throughout the PMU. 2. The continued improvement of housing for line –sites were commendable at the PMU.

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 SOU 16 Kok Foh operations in the course of assessment and consultations. During the Annual Surveillance Assessment (ASA-03), all pertinent feedback issues were reviewed and followed up for verification and these had been accordingly incorporated into the full detailed report.

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4.0 Assessment Conclusion and Recommendation

Based on the findings above, Sime Darby SOU 16 Kok Foh had been able to demonstrate its overall compliance with the current requirements of RSPO Principles and Criteria (Apr 2013), Malaysian National Interpretation (MY-NI 2010) and the RSPO Supply Chain Certification Standard (Nov 2011) for Palm Oil Mill.

Therefore, it is recommended that the certification of Sime Darby SOU 16 Kok Foh to be continued.

Full report signed off by:

Mohan Thavarajah Lead Assessor Intertek Certification International Sdn Bhd

4.1 Acknowledgement of Internal Responsibility and Confirmation of Assessment Findings

This is to acknowledge and confirm the assessment visits described in this report and the acceptance of the contents and findings in this assessment report.

Full report acknowledged and signed off by:

Mr. Ghazali bin Said SOU 16 Kok Foh Palm Oil Mill Manager

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4.2 Intertek RSPO Certificate details for SOU 16 Kok Foh Certificate No: RSPO 928188 (ICI Cert.) (Previous CB cert: C819157CU-RSPO-01.2011)

Issue date: 7 July 2012 (Original issue date: 7 July 2011)

Expiry date: 6 July 2016

Organization Sime Darby Plantation Sdn Bhd

Address of Head Office: PSQM Level 3A, Plantation Tower, No. 2, Jalan PJU 1A/7, Ara Damansara, 47301

Petaling Jaya, Selangor RSPO Membership No: 1-0008-04-000-00

Plantation Management Unit: SOU 16 Kok Foh

Address of Palm Oil Mill: Kok Foh Palm Oil Mill, 72109 Bahau, Negeri Sembilan, Malaysia

Standards: RSPO Principles and Criteria (Apr 2013) Malaysian National Interpretation (MY- NI, November 2010) and 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 Estates / Supply bases covered by this certificate and the tonnage approved are: GPS Reference Name Address Latitude Longitude Kok Foh POM Kok Foh Palm Oil Mill, 72109 Bahau, 2°47.08” N 102°30.25’ E (Capacity 40mt/hr) Negeri Sembilan, Malaysia Kok Foh Estate, 72109 Bahau, Kok Foh estate 2°47.08” N 102°30.25’ E Negeri Sembilan, Malaysia Sg. Senarut Estate, 85100 Batu Anam, Sg. Senarut estate 2°34.16’ N 102°45.20’ E Johor, Malaysia Muar River Estate, Locked Bag No.503, Muar River estate 2°34’26” N 102°45’08” E 85009 Segamat, Johor, Malaysia Pertang Estate, 72300 Simpang Pertang, Pertang estate 2°57’25” N 102°18.12’ E Negeri Sembilan, Malaysia Sg. Gemas Estate, 73400 Gemas, Johor, Sg. Gemas estate 2°34.73” N 102°38.86’ E Malaysia Bukit Pilah Estate, 73500 Rompin, Negeri Bukit Pilah estate 2°33.73” N 102°55.91’ E Sembilan, Malaysia St. Helier Estate, 72100 Bahau, Negeri St. Helier estate 2°33.72” N 102°33.73’ E Sembilan, Malaysia Sg. Sabaling Estate, 72100 Bahau, Negeri Sg. Sabaling estate 2°50.56” N 102°29.03’ E Sembilan, Malaysia

Intertek RSPO Report: June 2014 Page 15 of 28 Public Summary Report

Report No.: R9281/12-3 Sime Darby Plantation Sdn Bhd (SOU 16 Kok Foh: ASA-03)

The annual certifiable tonnages of CPO and PK production as assessed and verified during the current Annual Surveillance Assessment (ASA-03) are detailed as follows:

FY Jul 2013 / Jun 2014 FY Jul 2014 / Jun 2015 POM Actual + Projected (2 months) Projected Total FFB Processed (MT) 172,390.55 188,356.24 Total CPO Production (MT) 38,132.79 OER: 22.12% 41,193.51 OER: 21.87% Total PK Production (MT) 9,533.20 KER: 5.53% 10,303.09 KER: 5.47% SCCS Model for POM MB MB

Intertek RSPO Report: June 2014 Page 16 of 28 Public Summary Report

Report No.: R9281/12-3 Sime Darby Plantation Sdn Bhd (SOU 16 Kok Foh: ASA-03)

Appendix A:

Assessment Plan (Actual)

Date Time Assessors and Assessment Activity Asssessment Team 20/05/2014 9.00 – 1.00 pm Travel to SOU 16 Kok Foh, Bahau (N.Sembilan) and Gemas (Johor) 1.00 pm -2.00 pm Lunch Break Day 1 2.00 pm – 3.00 pm Opening Meeting and Briefing at SOU 16 Kok Foh– POM Office 3.00 pm – 6.00 pm Review of Documentation and Follow up Issues based the Previous Assessment • Review of changes for compliance to revised P&C 2013 • Review of Time Bound Plan • Verification for compliance with rules on partial certification 6.00 – 7.00 pm Break 7.00 –10.00 pm Team meeting and discussion

Date Time Assessors and Assessment Activity Assessment Team Mohd Nazib Marwan Mohan Thavarajah (MT) Chen Fai Kok (CFK) (MNM) 21/05/2014 9.00 am – Meeting & Briefing at SOU 16 Kok Foh grouping (Palm Oil Mill Office) Day 2 10.00 am 10.00 am – Site assessment at SOU Site assessment at Kok Site assessment at Kok 1.00 pm 16 Kok Foh grouping Palm Foh estate (RSPO P&C: Foh estate (RSPO P&C: Oil Mill (RSPO P&C: 1~8) 1~8) 1~8)

• P1 Transparency • P4 Best Practices at • P6 Employees, Individuals • P2 Laws & regulations Estates & Mill & Communities incl. • P3 Economic & Financial • P7 New Plantings Gender Issues Viability • P8 Continual Improvement • P8 Continual Improvement • P5 Environmental, Conservation & Mill including HCV • P8 Continual Improvement • SCC for POM 1.00 pm – Lunch 2.00 pm 2.00 pm -6.00 Site assessment at Muar Site assessment Muar Site assessment at Muar pm River estate (RSPO P&C: River estate (RSPO P&C: River estate (RSPO P&C: 1~8) 1~8) 1~8)

6.00 pm– Break 7.00 pm 7 – 10 pm Team meeting and discussion

Date Time Assessors and Assessment Activity Assessment Team

Intertek RSPO Report: June 2014 Page 17 of 28 Public Summary Report

Report No.: R9281/12-3 Sime Darby Plantation Sdn Bhd (SOU 16 Kok Foh: ASA-03)

Mohd Nazib Marwan Mohan Thavarajah (MT) Chen Fai Kok (CFK) (MNM) 22/05/2014 9.00 am – Site assessment at Sg. Site assessment at Sg. Site assessment at Sg. Day 3 1.00 pm Sabaling estate (RSPO Sabaling estate (RSPO Sabaling estate (RSPO P&C: 1~8) P&C: 1~8) P&C: 1~8)

• P1 Transparency • P4 Best Practices at • P6 Employees, • P2 Laws & regulations Estates & Mill Individuals & • P3 Economic & Financial • P7 New Plantings Communities incl. Gender Viability • P8 Continual Issues • P5 Environmental, Improvement • P8 Continual Conservation & Mill Improvement including HCV • P8 Continual Improvement

1.00 pm – Lunch 2.00 pm 2.00 pm -6.00 Stakeholder / Consultations: pm • Contractors • Suppliers • Transporters • NGOs • Government Department / Agencies • Local Community

# Mandatory for each category to be audited 6.00 pm– Break 7.00 pm 7 – 10 pm Team meeting and discussion

Date Time Assessors and Assessment Activity Assessment Team 23/05/2014 9.00 am – Preparation of Closing Meeting Day 4 10.00 am 10.00 am – Team Meeting and Discussions with SOU 16 Kok Foh grouping Management 11.00 am Representative 11.00 am – Closing Meeting & Briefing at Palm Oil Mill Office 12.00 pm 12.00 pm Travel back to Kuala Lumpur

Intertek RSPO Report: June 2014 Page 18 of 28 Public Summary Report

Report No.: R9281/12-3 Sime Darby Plantation Sdn Bhd (SOU 16 Kok Foh: ASA-03)

Appendix B-1:

Location Map of SOU 16 Kok Foh

Location Map of Sime Darby SOU 16 Kok Foh, Bahau (Negeri Sembilan) and Gemas (Johor), Malaysia. Scale 1: 100 km

SOU 16 Kok Foh

Intertek RSPO Report: June 2014 Page 19 of 28 Public Summary Report

Report No.: R9281/12-3 Sime Darby Plantation Sdn Bhd (SOU 16 Kok Foh: ASA-03)

Appendix B-2:

Location Map of Sime Darby SOU 16 Kok Foh, Bahau (Negeri Sembilan) and Gemas (Johor), Malaysia. Scale 1:10 km