MSPO CERTIFICATION SUMMARY REPORT
KILANG KELAPA SAWIT BUKIT PASIR SDN BHD
STAGE 2 – CERTIFICATION AUDIT
Date: 01/11/2019
TUV NORD (Malaysia) Sdn Bhd No. 9F-1A, 9th Floor, Tower 2 @ PFCC Jalan Puteri ½, Bandar Puteri Puchong 47100 Puchong, Selangor. Phone: +603 8600 4031/4032 Fax: +603 8600 4550
MSPO Certification Summary Report Company Name: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Certifying Unit: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Client Number: 92-126
Audit Type: Stage 2 – Certification Audit
Table of Contents
1
1. INTRODUCTION ...... 4 1.1. Objective 4 1.2. Scope 4 1.3. Appointment and Qualification of team members 4
2. METHODOLOGY ...... 8
3. ORGANISATION INFORMATION ...... 10 3.1. Production volume 10 3.2. Maps of Company and Mill Location 11
4. CERTIFICATION ASSESSMENT ...... 13 4.1. Stage II 13 4.2. Stakeholders’ Consultation 13 4.3. Summary of Findings 15 4.4. Status of Non-Conformities Previously Identified 30 4.5. Detail of Audit Findings Identified During last Audit 30 4.6. Detail of Audit Findings Identified During This Audit 30 5. CONCLUSION 33 6. RECOMMENDATION 34 7. LIST OF INTERVIEWEES 35 Table 7-1: List of Interviewed Persons and Stakeholders 35 Annex / Enclosures 36
MSPO-F04c / Rev 8 (2019/06) 2 of 36 MSPO Certification Summary Report Company Name: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Certifying Unit: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Client Number: 92-126
Audit Type: Stage 2 – Certification Audit
Abbreviations
CHRA Chemical Health Risk Assessment CPO Crude Palm Oil CSR Corporate Social Responsibility DOE Department of Environment EFB Empty Fruit Bunch EIA Environment Impact Assessment FFB Fresh Fruit Bunch GMP Good Milling Practices GPS Global Positioning System ISO International Standard Organisation MPOB Malaysian Palm Oil Board MPOCC Malaysia Palm Oil Certification Council MSPO Malaysia Sustainable Palm Oil NC Non Conformity OSH Occupational Safety and Health P&C Principle and Criteria PK Palm Kernel POME Palm Oil Mill Effluent PPE Personal Protective Equipment RSPO Roundtable Sustainable Palm Oil RTE Rare, Threatened and Endangered Species SA8000 Social Accountability 8000 SDS Safety Data Sheet SIA Social Impact Assessment SOP Standard Operating Procedure WHO World Health Organization
MSPO-F04c / Rev 8 (2019/06) 3 of 36 MSPO Certification Summary Report Company Name: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Certifying Unit: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Client Number: 92-126
Audit Type: Stage 2 – Certification Audit
1. INTRODUCTION
Kilang Kelapa Sawit Bukit Pasir Sdn Bhd has commissioned TUV NORD (Malaysia) Sdn Bhd to conduct certification audit for its palm oil mill according to MS 2530-4:2013 Part 4 General Principles for Palm Oil Mills.
1.1. Objective The objective of this certification audit is to assess Palm Oil Mill by an independent certification body with the aim for compliance of the standards.
1.2. Scope The certification is based on the documentation established by the palm oil mill Kilang Kelapa Sawit Bukit Pasir Sdn Bhd. The supporting documents provided to the audit team as well as information received by means of interviews and background investigation. The documents and information are reviewed against the requirements and criteria based on MS 2530-4:2013 Part 4 General principles for palm oil mills. TUV NORD Malaysia has employed a risk-based approach in the audit, focusing on the identification of significant risks and reliability of the assessment and reporting. The following references are used as part of the assessment; the compliance of the requirements of the guidelines applied are checked. 1. Malaysian Sustainable Palm Oil Part 4: General Principles for Palm Oil Mill audit guidance; 2. Palm Oil Supply Chain Traceability Requirements
1.3. Appointment and Qualification of team members The audit team appointed consists of the team leader and 2 team members. The team contributes to the review of documents, assessment of the project activity and preparation of this report. Qualification of the Trainee Lead Auditor: Muhammad Khairul Anuar bin Azizul Hasan
Requirement Qualifications Post-secondary education, college or university Graduate in Applied Science (Major in Plantation diploma / degree in one of the following Industry and management) i) Agriculture; ii) Science & Technology (e.g. Environmental Sciences, Life Sciences, Geological Sciences, Natural Sciences,); iii) Engineering, Process Technology; iv) Energy Management, Quality Management; v) Social Sciences and/or Anthropology; vi) Business Management; or vii) Other relevant related fields
MSPO-F04c / Rev 8 (2019/06) 4 of 36 MSPO Certification Summary Report Company Name: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Certifying Unit: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Client Number: 92-126
Audit Type: Stage 2 – Certification Audit
Requirement Qualifications At least five (5) years of work experience in the 7 years working experience in oil palm plantations. oil palm sector or related field in consultancy / auditing of similar industry or equivalent related to and as necessary for the certification process. (e.g., sustainability, palm oil management; agriculture, ecology; social science) Successfully completed MS 2530 series of Successfully completed MS2530: 2013 LA Course. standards training Conducted at least three (3) MSPO or equivalent Qualified as auditor. Conducted more than 3 Lead sustainability certification audits as Lead Auditor- Auditor in training with more than 15 man days. . in-training with a minimum of fifteen (15) man- days under the supervision of a qualified Lead Auditor for MSPO or equivalent sustainability certification schemes within the last two (2) years. A good knowledge in handling and evaluating Able to communicate in Bahasa Malaysia and sources of information and data. Able to English. communicate in Bahasa Malaysia, English and / or any other local language. Field working experience in the palm oil sector, 7 years working experience in oil palm plantation. or demonstrable equivalent Health and safety auditing on the farm and in Successfully completed IMS ISO 9001, 14001 and processing facilities, for example ISO 45001 or 45001 LA course. Occupational, Health & Safety Assurance System Worker welfare issues and social auditing Successfully completed SA 8000 Basic training and experience, for example with SA8000 or related Auditor MSPO and Auditor in training for RSPO social or ethical accountability codes scheme. Environmental and ecological auditing, for Successfully completed IMS 9001, 14001 and example experience with organic agriculture, 45001 LA course, Auditor for MSPO and Auditor in ISO 14001 or Environmental Management training for RSPO scheme. Systems (EMS) or High Conservation Value (HCV) Good Milling Practices for example palm oil Successfully completed MSPO SCCS course. milling working experience or demonstrate equivalent. Qualification of Team Members
Requirement Assessor Qualification Compliance Post-secondary education, college or Cheong, Chun Yuen Graduate in Business Yes university diploma / degree in one of (Robert) Administration, Diploma the following in Marketing, Higher i) Agriculture; Certificate in Business ii) Science & Technology (e.g. and Industrial Administration. Environmental Sciences, Life
MSPO-F04c / Rev 8 (2019/06) 5 of 36 MSPO Certification Summary Report Company Name: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Certifying Unit: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Client Number: 92-126
Audit Type: Stage 2 – Certification Audit
Requirement Assessor Qualification Compliance Sciences, Geological Sciences, Ariff bin Lokman Graduate in Applied Natural Sciences,); Science (Major in iii) Engineering, Process Plantation Industry and Technology; Management ) iv) Energy Management, Quality Management; v) Social Sciences and/or Anthropology; vi) Business Management; or vii) Other relevant related fields At least five (5) years of work Cheong, Chun Yuen Senior Auditor for MSPO, Yes experience in the oil palm sector or (Robert) ISCC and RSPO related field in consultancy / auditing Ariff bin Lokman 7 years working of similar industry or equivalent related to and as necessary for the experience in oil palm certification process. (e.g., plantation. sustainability, palm oil management; agriculture, ecology; social science) Attended the MS 2530 series of Cheong, Chun Yuen Successfully completed Yes standards training (Robert) MS2530 series training. Ariff bin Lokman Successfully completed MS2530 series training. Conducted a minimum six (6) on-site Cheong, Chun Yuen Senior Auditor for MSPO, Yes audits for a total of at least 20 man- (Robert) ISCC and RSPO days of audit experience as an Ariff bin Lokman Qualified as auditor. auditor-in-training under the direction Conducted more than 6 and guidance of a qualified Lead on site audit with more Auditor for MSPO or equivalent than 20 man days. sustainability certification schemes. A good knowledge in handling and Cheong, Chun Yuen Bahasa Malaysia, Yes evaluating sources of information (Robert) Mandarin and English. and data. Able to communicate in Ariff bin Lokman Bahasa Malaysia and Bahasa Malaysia or any other local language. English. Field working experience in the palm Cheong, Chun Yuen Senior auditor for MSPO, oil sector, or demonstrable (Robert) ISCC and RSPO equivalent Ariff bin Lokman 7 years working experience in oil palm plantation. Health and safety auditing on the Cheong, Chun Yuen Successfully completed Yes farm and in processing facilities, for (Robert) ISO 45001 LA course example ISO 45001 or Occupational, Senior auditor for MSPO, Health & Safety Assurance System ISCC and RSPO Ariff bin Lokman Auditor for MSPO scheme, IMS ISO 9001, 14001, 45001.
MSPO-F04c / Rev 8 (2019/06) 6 of 36 MSPO Certification Summary Report Company Name: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Certifying Unit: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Client Number: 92-126
Audit Type: Stage 2 – Certification Audit
Requirement Assessor Qualification Compliance Worker welfare issues and social Cheong, Chun Yuen Successfully completed Yes auditing experience, for example (Robert) Basic SA 8000 & GRI 4 with SA8000 or related social or training. ethical accountability codes Senior auditor for ISCC / MSPO / RSPO Ariff bin Lokman Successfully completed SA 8000 Basic training, Auditor for MSPO and Auditor in training for RSPO scheme. Environmental and ecological Cheong, Chun Yuen Authorized ISCC/ MSPO Yes auditing, for example experience (Robert) / RSPO, Carbon Credits with organic agriculture, ISO 14001 sustainability & World or Environmental Management Bank Environmental, Systems (EMS) or High Health & Safety Conservation Value (HCV) assessment. Successfully completed ISO 14001:2015 Lead auditor course Ariff bin Lokman Successfully completed IMS ISO 9001, 14001, 45001 LA course, Auditor for MSPO and Auditor in training for RSPO scheme. Good Milling Practices for example Robert, Cheong Chun Senior auditor for MSPO, Yes palm oil milling working experience Yuen ISCC and RSPO or demonstrate equivalent. Ariff bin Lokman Successfully completed MSPO SCCS course.
MSPO-F04c / Rev 8 (2019/06) 7 of 36 MSPO Certification Summary Report Company Name: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Certifying Unit: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Client Number: 92-126
Audit Type: Stage 2 – Certification Audit
2. METHODOLOGY
The audit approach consists of the following steps: Contract review; Appointment of team members and technical reviewer; Contact client for relevant documentation according to the applicable MSPO standards; Audit planning; Background investigation, desk review of submitted documents; On-Site assessment, inspections, interviews with operational personnel, stakeholders and its contractors; review of documentation; On-site reporting Resolution of non-conformance (NC) (if any) Draft audit reporting Technical review Final audit reporting Peer review Address Peer Review Comments (if any) Final approval and issuance of certificate. The list of reviewed documents refer to chapter 7, Table 7-1 The certification audit is conducted in 2 stages in accordance to the certification procedure.
Type of audit: Certification Audit Certification Audit is conducted on 19/08/2019 covers the following activities but not limited to below: Onsite inspection, observations and inspections of mill facilities such as process, workshops, stores, wastewater treatment system, waste handling and disposal sites, workers and staff living quarters, receiving and delivery of products for compliance to relevant Principles & Criteria of the applied standard; Interview operation personnel for understanding for the work assigned; Reviewed revised and updated documentation established and implemented; Operating records; Training records; Reports established; Work plans established; Review and closed out of non-conformance raised during stage 1 audit; Assessment reporting;
MSPO-F04c / Rev 8 (2019/06) 8 of 36 MSPO Certification Summary Report Company Name: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Certifying Unit: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Client Number: 92-126
Audit Type: Stage 2 – Certification Audit
For list of personnel participated in the audits refer attendance sheet and Table 7-1.
On-site Assessment The audit of the mill is conducted according to the MS 2530-4: 2013 Part 4: General principles for palm oil mills. The methodology for collection of objective evidences include physical site inspections, observation of tasks and processes, interviews of stakeholders, communities, staff, workers and their families, review of documentation and data. Checklists and questionnaires are used to guide the collection of information. The comments made by external stakeholders are taken into account in the assessment.
Non-conformance: On the basis of the desk review, evidences presented during the audits as well as from the onsite visits non-conformance (NC) Major, Minor and Opportunity for Improvement (OFI) may be raised during the audit. Major non-conformance shall be addressed and responded with 60 days from closing date of audit. For minor non-conformances and action plan to be submitted within 30 days from closing date of audit for review and acceptance. Implementation of Minor NC will be reviewed and verified during the next audit.
MSPO-F04c / Rev 8 (2019/06) 9 of 36 MSPO Certification Summary Report Company Name: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Certifying Unit: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Client Number: 92-126
Audit Type: Stage 2 – Certification Audit
3. ORGANISATION INFORMATION Kilang Kelapa Sawit Bukit Pasir Sdn Bhd is located at Jalan Kim Chee, Bukit Pasir, Muar Johor. The mill began operation in 1981 with an operating capacity of 20 MT per hour. In 2014 it was upgraded to 50 MT per hour operating capacity. Name of Mill Location Coordinates
Kilang Kelapa Sawit Bukit Pasir, Muar, Johor N 2°5’6” E 102°41’53” Bukit Pasir
3.1. Production volume Actual volume Jan 2019 to Projected volumes Projected volume July 2019 Aug 2019 to Dec 2019 Jan 2020 to Dec 2020 FFB CPO PK FFB CPO PK FFB CPO PK
199,723.00 37,947.37 11,983.38 127,141.52 22,885.47 7,268.49 326,864.52 58,835.61 19,611.87
MSPO-F04c / Rev 8 (2019/06) 10 of 36 MSPO Certification Summary Report Company Name: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Certifying Unit: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Client Number: 92-126
Audit Type: Stage 2 – Certification Audit
3.2. Maps of Company and Mill Location Figure 1
MSPO-F04c / Rev 8 (2019/06) 11 of 36 MSPO Certification Summary Report Company Name: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Certifying Unit: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Client Number: 92-126
Audit Type: Stage 2 – Certification Audit
Figure 2
Figure 3
MSPO-F04c / Rev 8 (2019/06) 12 of 36 MSPO Certification Summary Report Company Name: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Certifying Unit: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Client Number: 92-126
Audit Type: Stage 2 – Certification Audit
4. CERTIFICATION ASSESSMENT
4.1. Stage II The objective of the certification audit is to assess the activities of the mill are in compliance with MS 2530-4: 2013 Part 4: General principles for palm oil mills.
4.1.1. Stage 1 Audit The objective of the stage 1 audit is to assess the readiness of the documentation establish and implemented in accordance to MS 2530-4: 2013 Part 4: General principles for palm oil mills. According to the Certification Scheme, an initial due-diligence audit for operators which are entering into the MSPO system, that do not have any certification or those having management system certification e.g. ISO, COP. These operators shall undergo both Stage I and II audit. Kilang Kelapa Sawit Bukit Pasir Sdn Bhd does not has ISO or another scheme certification, therefore has to undergo stage 1 and stage 2 audit. The audit team has applied the Malaysian Sustainable Palm Oil Part 4: General principles for oil palm mills audit guidance to assess the established documents against the Principles and Criteria of the standard. The Stage I audit is conducted on 12/06/2019 at Kilang Kelapa Sawit Bukit Pasir Sdn Bhd covering the following activities: Onsite interviews and inspections; Review of documentation for compliance to relevant P & C requirements for plantation and mill; Reporting of issues concern during Stage I audit;
4.1.2. Stage II:
The Stage II audit is conducted on 19/08/2019 covering Kilang Kelapa Sawit Bukit Pasir Sdn Bhd. During the Stage II audit, there are 1 minor Non – conformity and 10 Opportunity for Improvement (OFI) are raised. For details of the assessment, refer summary of assessment for each indicator in section 4.3 of this report. The number of audit findings raised in this audit refer to Section 4.5 of this audit report.
4.2. Stakeholders’ Consultation TUV NORD (Malaysia) Sdn. Bhd., has published the public notification on 16/07/2019 as to accommodate stakeholder’s consultation meeting for Kilang Kelapa Sawit Bukit Pasir Sdn Bhd to provide comments. As at audit date on 19/08/2019 there are no comments received.
MSPO-F04c / Rev 8 (2019/06) 13 of 36 MSPO Certification Summary Report Company Name: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Certifying Unit: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Client Number: 92-126
Audit Type: Stage 2 – Certification Audit
Invitation letters are sent on 16/07/2019 to invite relevant stakeholders to attend a local stakeholders’ consultation on 19/08/2019 to gather information from the local communities in accordance to §7, 3.2 of the Certification Procedure requirements. The topics of discussion are as below: 1. Introduction of MSPO certification. 2. Development of oil palm plantations. 3. Community service and support. 4. Wildlife management and wildlife corridor. 5. Type of wildlife sighted at plantations and wildlife corridor. 6. Local communities’ development. The following relevant Principles & Criteria of the applied standard are discussed during the stakeholders’ consultation: 1. Principle 2 Criteria 2 Indicator 1: Consultation and Communication with stakeholders: The stakeholders could confirm they have attended meetings with the company on MSPO certification. 2. Principle 4 Criteria 2 Indicator 3 & 4: A complaint form should be made available at the premises, where employees and affected stakeholders can make a complaint The stakeholders’ advice that they have been informed a logbook and form available at the office to lodge any complaints or suggestions. 3. Principle 4 Criteria 3 Indicator 1: Contribute to local development in consultation with the local communities. The local communities could confirm the company has provide assistance and support to communities. 4. Principle 6 Criteria 4 Indicator 1: Where contractors are engaged, they shall understand the MSPO requirements and shall provide the required documentation and information The contractors who provides maintenance and service could confirm they are briefing on MSPO requirements. There are issues raised during the stakeholder’s consultation on social, environmental and operations that need to be addressed by the certified unit.. The list of stakeholders who attended the meeting refer to Table 7-1. Item Subject discussed Audit team findings Company response and proposed action to be taken 1 Any information from the Stakeholders have confirmed on Positives comments Company on MSPO MSPO audit as per invitation letter towards KKSBP audit? received from TUV Nord (M) Sdn management Bhd. They have confirm with company before MSPO audit date.
MSPO-F04c / Rev 8 (2019/06) 14 of 36 MSPO Certification Summary Report Company Name: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Certifying Unit: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Client Number: 92-126
Audit Type: Stage 2 – Certification Audit
Item Subject discussed Audit team findings Company response and proposed action to be taken 2 Social issues There is social issue raised by the To arrange stakeholders stakeholders as regards to POME meeting as soon as discharge through waterways. possible 3 Economy / livelihood Stakeholders noticed that the mills Positives comments Is there any impact on has hired local peoples for working towards KKSBP livelihood after the within mill operation management introduction of MSPO? 4 Does MSPO largely Stakeholders have confirmed that Positives comments benefits the local MSPO implementation benefits the towards KKSBP community? community by providing management awareness on FFB quality. 5 Environmental Stakeholders aware of Positives comments understanding environmental issue that can towards KKSBP affected them management 6 Support to smallholders Stakeholders appreciated on Mill Positives comments tolerance on receiving of FFB from towards KKSBP the FFB dealers, which is fair in management grading method. 7 FFB quality Stakeholders aware of FFB quality Positives comments to be send to the mill. They have towards KKSBP confirm that the mill has follow the management MPOB requirements on FFB grading. 8 Are there any mill There is mill management To arrange stakeholders management practices practices that affect the meeting as soon as that affect you? stakeholders. possible 9 Do you consider the Stakeholders have confirmed the Positives comment management is in management has no conflict with towards KKSBP conflict with the MSPO the MSPO principles and criteria. management principles and criteria? 10 Do you have any To conduct stakeholders meeting To arrange stakeholders suggestions for in a wider scope of affected meeting as soon as management? stakeholders surrounding the mill. possible.
4.3. Summary of Findings
Principle and Criteria Assessment Summary The assessment team conducted a thorough assessment of each principle and criteria. Over the 5 years’ period of the certificate cycle, there will be 4 annual surveillance audits where all criterions will be assessed. Evidences are sought for conformity with the MSPO 2530-4. The summary of the assessment can be seen below, where the “Findings/Comments” column reflects the findings in accordance with each criteria and indicator or evidences and when non conformity is found. Summary of the non-conformity can be found below
MSPO-F04c / Rev 8 (2019/06) 15 of 36 MSPO Certification Summary Report Company Name: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Certifying Unit: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Client Number: 92-126
Audit Type: Stage 2 – Certification Audit
Principle 1: Management Commitment & responsibility Indicator Summary of Assessment Compliance 4.1.1.1 KKSBP has established MSPO policy dated 01/04/2019 signed by Company Yes Director and publicly available at security post and office notice board. The policy describes; KKSBP committed to provide adequate resources towards the sustainability of our palm oil business by implementing MSPO system and the continuous improvement on sustainable development. KKSBP has conducted MSPO Policy training for workers and staff on 03/06/2019 and 10/06/2019. 4.1.1.2 KKSBP has established MSPO policy dated 01/04/2019 sign by Company Yes Director. The policy states: KKSBP committed to provide adequate resources towards the sustainability of our palm oil business by implementing MSPO system and the continuous improvement on sustainable development. They are ensure all levels of workforce and relevant stakeholders are being communicated and understand the commitment towards MSPO Certification. 4.1.2.1 KKSBP has established SOP internal audit document number: SOP-MP1- Yes Management Procedure/1, revision 1/1, dated issued 15/11/2018. The procedure describe internal audit to be conducted once a year. The purpose is to assess and ensure the management system implemented is effective through periodic internal audit. The latest internal audit conducted on 08/05/2019. There are 4 NCs raised. 4.1.2.2 KKSBP has established SOP internal audit document number: SOP-MP1- Yes Management Procedure/1, revision 1/1, dated issued 15/11/2018. Internal audit is conducted on 08/05/2019. Internal audit result identify the strengths and weakness. The non-conformities raised are addressed with correction and preventive action. Example: Strengths: - KKSBP has already obtained ISO 14001:2015 and currently preparing for recertification in the month of May / June 2019. Weakness: - Scheduled wastes storage. - Mill sanitation upkeep and adoption of 5S concept - Training of all ground level workers for all types of works (PPE’s compliance, SWP & HIRARC adherence). - Mill laboratory compliance requirement and standard upkeep. 4.1.2.3 Management review was conducted on 09/05/2019. The management Yes review agenda include internal audit findings, trends and audit schedules.
MSPO-F04c / Rev 8 (2019/06) 16 of 36 MSPO Certification Summary Report Company Name: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Certifying Unit: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Client Number: 92-126
Audit Type: Stage 2 – Certification Audit
Principle 1: Management Commitment & responsibility Indicator Summary of Assessment Compliance 4.1.3.1 KKSBP has established SOP for management review, document number: Yes BPSOP-MP2-Management Procedure/2, revision 1/1, dated 01/04/2019. KKSBP has conducted management review meeting on 09/05/2019 after internal audit on 08/05/2019 Management review agenda as follows: - Minutes / actions of previous meeting - MSPO certification status - Manual, policy and procedures status - Results of internal audits-trends, audit schedules - Preventive and corrective actions status - Recommendations for improvements 4.1.4.1 KKSBP has established CIP for year 2019 with latest update on 29/05/2019. Yes The topic in the CIP are Social, environmental, safety and health and operations. Example: Objective: to ensure POME releasing BOD level are within DOE guidelines. Strategies: implementing proper pome management guideline. Activities: plan and execute the better way to optimize the benefits of POME. Resources & support: trainings and action plan. Person in charge: Management representative. Timeline: on going. Completion date: on going. Measure of success: monthly monitoring of BOD results. Result: no compounds or non-conformities from DOE. Remarks: methane gas capturing is in progress of planning. 4.1.4.2 KKSBP have used CIP as system to improve practices with new information Yes or technology. Sighted in the CIP; - Objectives/goal - Strategies - Activities - Resources and support - Person in charge - Timeline - Completion date
MSPO-F04c / Rev 8 (2019/06) 17 of 36 MSPO Certification Summary Report Company Name: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Certifying Unit: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Client Number: 92-126
Audit Type: Stage 2 – Certification Audit
Principle 1: Management Commitment & responsibility Indicator Summary of Assessment Compliance - Measure of success - Results - Scope Example of new system to be implement within the mill operations are; - Establishing compost plant - Installing of heat insulator for the pipes (CPO/PKO/Steam)
Principle 2: Transparency Indicator Summary of Assessment Compliance 4.2.1.1 KKSBP has established list of stakeholders updated on 12/08/2019. Yes The list consist of suppliers, contractors, service providers, NGOs, government agencies, local community. Stakeholders meeting conducted dated 10/04/2019. 4.2.1.2 KKSBP has established list of public and confidential available document Yes dated 10/04/2019 with latest updates on 24/05/2019 and available in. both languages Bahasa Malaysia and English The publicly document example: - Annual stakeholders meeting minutes - Company policies. - SOPs Confidential document example: - Monthly progress report. - Annual budget 4.2.2.1 KKSBP has established SOP communication, document number: YGSOP- Yes MP5-Management procedure/5, revision 1/1 dated 01/04/2019 for handling of internal and external communication and consultation with stakeholders with regards to MSPO requirements and mill operations. Stakeholders minutes of meeting dated 10/04/2019 includes briefing of this SOP. 4.2.2.2 KKSBP appoints the Assistant Mill Manager as the representative for the Yes consultation and communication dated 22/05/2019. 4.2.2.3 KKSBP has established list of stakeholders updated on 12/08/2019 that Yes include contractors, suppliers, local communities, government agencies and NGOs. KKSBP conducted stakeholder meeting on 10/04/2019. The SOP stated that the period to solve the input from stakeholders is within 2 weeks.
MSPO-F04c / Rev 8 (2019/06) 18 of 36 MSPO Certification Summary Report Company Name: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Certifying Unit: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Client Number: 92-126
Audit Type: Stage 2 – Certification Audit
Principle 2: Transparency Indicator Summary of Assessment Compliance As of audit date, input from local communities are in consideration by the management to resolve. 4.2.3.1 KKSBP has established SOP traceability document number SOP-MP 10- Yes Traceability/10, revision 1/1 dated issued 01/04/2019. SOP describes: 1. Assistant Mill manager as person in charge for oversee the traceability process. 2. Sequence of traceability from receiving of FFB until dispatch of CPO and PK. Source of incoming raw material, FFB can be trace to supplying estates through Supplier Intake Statement. All stages from receiving of FFB till despatching the CPO & PKO shall be documented accordingly. 4.2.3.2 The traceability has been audited during internal audit on 08/05/2019. Yes Results of internal audit on traceability indicate no issue raised. 4.2.3.3 KKSBP has appointed Assistant Mill Manager as a person in charge for Yes monitoring and implementing traceability requirement dated 01/04/2019. Position: Traceability and document controller. Duties and responsibilities. - Maintain and update whenever there is any changes of document. - To ensure the procedures are identified and traceable during various stages of production where appropriate. - Responsible for overall document control and distribution of documents to the user. 4.2.3.4 KKSBP has established records of storage, sales and delivery. Yes Delivered palm products are traceable to contracts and crosscheck with delivery notes, weighbridge tickets issued against weighbridge tickets from buyers. Weighbridge ticket from FFB supplier is review. - The ticket consist of MPOB license, ticket no, vehicle no, date, product, weight, graded OER. Weighbridge ticket for PK despatch is review; - The ticket date, ticket no, vehicle no, contract no, product and weight. All weighbridge tickets are documented and well maintained.
MSPO-F04c / Rev 8 (2019/06) 19 of 36 MSPO Certification Summary Report Company Name: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Certifying Unit: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Client Number: 92-126
Audit Type: Stage 2 – Certification Audit
Principle 3: Compliance to legal requirements Indicator Summary of Assessment Compliance 4.3.1.1 KKSBP established license & permit master list doc no: EF-06 rev no: 01 Yes date: 08/05/2019. Example: Fire Services Certificate valid until 20/07/2020 MPOB CPO License No: 500133404000 valid until 31/07/2020 4.3.1.2 KKSBP established list & summary of applicable laws & regulations, issue Yes no: 1, date: 01/04/2019 The establish list include the applicable clauses. Example: OSHA Act 1994 (Act 154) Factory and Machinery Act 1967 (Act 139) 4.3.1.3 KKSBP latest list of legal documents dated 01/04/2019. No update yet since Yes the list is established recently 4.3.1.4 The Assistant Mill Engineer is the assigned person to update any changes Yes as and when available. 4.3.2.1 KKSBP land titles are either Temporary Grant or Grant issued by the state Yes land department for industry usage. 4.3.2.2 KKSBP is the legal owner of the land. Land titles are issued by Johor State Yes Land Department. 4.3.2.3 KKSBP land titles include the map with the land titles number and size Yes 4.3.2.4 KKSBP land titles are issued by the Johor State Land Department Yes 4.3.3.1 KKSBP land titles are Hak Milik Sementara issued by Johor Land Authority. Yes Therefore no customary concerns. Type of land: Industry 4.3.3.2 KKSBP land titles are Hak Milik Sementara issued by Johor Land Authority. Yes Therefore no customary concerns. Type of land: Industry 4.3.3.3 KKSBP land titles are Hak Milik Sementara issued by Johor Land Authority. Yes Therefore no customary concerns. Type of land: Industry
Principle 4: Social Responsibility, health, safety and employment conditions Indicator Summary of Assessment Compliance 4.4.1.1 KKSBP established SIA dated 10/06/2019. Minor NC The assessment conducted on 25/05/2019 for internal stakeholders and on 03/06/2018 for external neighbours. SIA include the positive and negative impacts at the summary report.
MSPO-F04c / Rev 8 (2019/06) 20 of 36 MSPO Certification Summary Report Company Name: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Certifying Unit: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Client Number: 92-126
Audit Type: Stage 2 – Certification Audit
Principle 4: Social Responsibility, health, safety and employment conditions Indicator Summary of Assessment Compliance NC: 1. The monitoring plan is not established to promote the positive and mitigate the negative 2. The survey conducted is not comprehensive that the local villagers outside the mill is not included. 4.4.2.1 KKSBP has established Complaint and Grievance procedure, revision 1 Yes document no KKSBPSOP – MP4 dated 12/06/2019. The Procedure has describes; - Scope of complaint - Responsibilities - Procedure lodge of complaint Stated in the SOP: Human Resource executive shall responsible to handle the complaint and grievances. 4.4.2.2 The SOP has describe the timeline to take action is within 14 days from the Yes time received. 4.4.2.3 KKSBP has established complaint form and made available at the mill office. Yes 4.4.2.4 Daily briefing conducted on awareness regarding complaint and suggestion, Yes and process on assessing and filling complaints form. Interview with workers indicates they are aware on complaint and grievance procedure. Stakeholders been briefed on complaint during stakeholders meeting on 10/04/2019. 4.4.2.5 Complaint file is review. There is no complaint made for last 24 month. Yes 4.4.3.1 Workers list is review. Sighted local people are hired by KKSBP. Yes Site verification indicates that local people are hired for mill operation such as FFB grading, cleaner and boiler man. 4.4.4.1 KKSBP established occupational safety and health policy dated 01/04/2019 Yes sign by Director and display at the office notice board. Training OSHA policy conducted on 03/06/2019 and 10/06/2019. 4.4.4.2 a KKSBP established occupational safety and health policy dated 01/04 Yes 2019 sign by Director and display at the office notice board. Training OSHA policy conducted on 03/06/2019 and 10/06/2019. b KKSBP establish HIRARC dated 24/04/2019 for each process area. Example: Boiler and processing In the HIRARC table included a list of the activity, hazard, risk, risk control, risk rating, additional controls and PIC. c. i KKSBP provides training for relevant work areas. Example:
MSPO-F04c / Rev 8 (2019/06) 21 of 36 MSPO Certification Summary Report Company Name: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Certifying Unit: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Client Number: 92-126
Audit Type: Stage 2 – Certification Audit
Principle 4: Social Responsibility, health, safety and employment conditions Indicator Summary of Assessment Compliance Safety & HIRARC training for both shifts on 04/07/3029 and 09/07/2019 Boiler water, chemical handling & Mixing on 10/07/2019. Workers interview inform that training provided. c. ii SDS are kept at stores and laboratory. All products are in original packaging with proper labelling d KKSBP established HIRARC states PPE required for the activity. Workers are provided with type of PPE for type of activity: Example: Electrical Room: PPE: Safety gloves, safety shoes and rubber mat. Mill processing: Safety shoe, Safety helmet and Ear Plug e KKSBP establish SOP for Chemical Handling Doc. no SOP-MP12- Chemical Handling 7/12 issue 1 rev 1 dated 15/11/2018. The SOP describes the handling and storage CHRA conducted on 03/07/2018 to 20/07/2018 for chemicals and hydrocarbons used in the milling process. f The mill manager is the appointed person for safety and health
g KKSBP conducted OSH meeting with the latest meeting held on 10/04/2019 and the previous on 31/12/2018 participated by workers’ representatives and management team h KKSBP establish emergency respond plan with contact details signed by mill manager and display at the mill notice board. i KKSBP conducted CPR & First Aid training on 18/04/2018 attended by staff and workers of different work areas. First Aider contract details display at office and guard house notice boards j Records of accidents are kept and reported in OSH meetings and to JKKP if any happen. Sighted report to JKKP for a major death accident occurred in 2018. 4.4.5.1 KKSBP establish Social and Employment policy dated 01/04/2019 signed by Yes Director includes a statement human rights element. 4.4.5.2 KKSBP established Employment Policy dated 01/04/2019 signed by Director Yes include a statement shall not engage in or support discriminatory based on race, caste, national origin, religion, disability, gender, sexual orientation or political affiliation. The policy is made available at office notice board. Interview workers informed they are briefed on 03/06/2019 & 10/06/2019 4.4.5.3 KKSBP pay workers according to minimum wage 2018. Yes
MSPO-F04c / Rev 8 (2019/06) 22 of 36 MSPO Certification Summary Report Company Name: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Certifying Unit: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Client Number: 92-126
Audit Type: Stage 2 – Certification Audit
Principle 4: Social Responsibility, health, safety and employment conditions Indicator Summary of Assessment Compliance Example: July pay slip for water treatment plant operator comply Minimum Wage Order 2018. 4.4.5.4 KKSBP monitor contractor’s workers wage by obtaining copy of pay slip. Yes Example: Wage paid in June 2019 is above minimum wage order 2018. 4.4.5.5 KKSBP established list of workers for local and foreigners that include names, Yes gender, date of birth, date of entry, a job description, nationality and identification number 4.4.5.6 Employment agreement includes information of worker such as date of join, Yes IC or passport number jointly signed by worker and management with a copy provide to each worker. Interview workers confirmed they are paid according to the minimum wage 2018 of RM1,100 4.4.5.7 KKSBP used punch card system for recording working hours and overtime for Yes staff and workers. 4.4.5.8 KKSBP established working hours and displayed in office notice board. Yes Day shift: 7:00 am to 3:00pm Night Shift: 3:00pm to 11:00pm Break time: Day shift: 12:00pm to 1:00pm Night shift: 7:00pm to 8:00pm 4.4.5.9 Wages and overtime records for workers stated in pay slip is cross check with Yes payroll summary for correctness. 4.4.5.10 Workers are provided with free medical care, housing, allowance for station Yes workers according to NUPW guidelines, public holidays, medical leave, and annual leave. Interview workers informed they received the benefits as stated in the work contract. 4.4.5.11 Workers housing quarters are in accordance to minimum housing Act 446. Yes Each unit is for 4 persons, water supply from public source and electricity from the grid. Access to basic amenities such as food market, canteen, religious worship place and recreation are within the location of the mill 4.4.5.12 KKSBP established Sexual Harassment policy dated 01/04/2019 signed by Yes company director and display at office notice board. 4.4.5.13 KKSBP established social and employment policies dated 01/04/2019 signed Yes by Director includes a statement “The employer respect the right of all employees to form or join trade unions of their choice. KKSBP workers are free to join the National Union of Plantation Workers and Malaysia Agricultural Producers Association.
MSPO-F04c / Rev 8 (2019/06) 23 of 36 MSPO Certification Summary Report Company Name: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Certifying Unit: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Client Number: 92-126
Audit Type: Stage 2 – Certification Audit
Principle 4: Social Responsibility, health, safety and employment conditions Indicator Summary of Assessment Compliance 4.4.5.14 KKSBP Employment policy dated 01/04/2018 signed by Director include a Yes statement “No person under the age of 18 Years Old shall be employed”. Review list of workers and found no underage workers employed. Site observation, there are no workers below age of18 years. 4.4.6.1 KKSBP conducted training on: Yes SOP and HIRARC for Shift A & Shift B workers on 04/07/2019 Safety, HIRARC, MSPO requirements for contractor workers on 08/07/2019. 4.4.6.2 Training programme for 2019 establish based on workers job assigned. Yes 4.4.6.3 KKSBP establish training schedule for year 2019 dated 01/03/2019 with Yes program starting from April until December 2019. Example: Raw water, chemical handling & Mixing conducted on 10/07/2019 for water treatment operator.
Principle 5: Environment, natural resources, biodiversity and ecosystem services Indicator Summary of Assessment Compliance 4.5.1.1 KKSBP has been established Environmental policy dated 01/02/2019 Yes signed by Mill Manager. The policy describe Environmental compliance by ensuring operation complies with applicable environment regulation, legislations, customer requirement. Environmental Management Plan established dated 19/04/2019. Activity: Smoke emission by FFB lorry Impact: Air Pollution Management Control: advised outside transporter to have regular maintenance for vehicles. PIC: Assistant Manager Activity: CPO spillage / leakage from pipe Impact: Land Contamination Management Control: carry out regular maintenance / checking of pipe. PIC: Assistant Manager / supervisor Training on Environmental Policy to the workers conducted on 03/06/2019 and 10/06/2019. Environmental policy is displayed at the Mill notice board. 4.5.1.2 a KKSBP has been established Environmental Objectives dated 01/02/2018 signed by company director. Yes The Environmental Objectives describes: 1. 100% compliance to licensing requirements
MSPO-F04c / Rev 8 (2019/06) 24 of 36 MSPO Certification Summary Report Company Name: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Certifying Unit: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Client Number: 92-126
Audit Type: Stage 2 – Certification Audit
Principle 5: Environment, natural resources, biodiversity and ecosystem services Indicator Summary of Assessment Compliance 2. Not more than 600L SW 305 generation every 6 month. b KKSBP has been established EMP revision no 1, dated 27/03/2019. Aspect and impact analysis for all operations included in EMP. The EMP describes; Environmental aspect, risk, environmental impacts, rating and legal requirements. Environmental impacts and aspect cover weighbridge, loading ramp, sterilization, threshing, clarification station, depericarper, EFB station, CPO storage tank, PK bulking SILO, Boiler station, engine room, workshop, chemical store, lubricant store, scheduled waste store, diesel storage, laboratory, worker quarters, vehicle, water treatment plant and effluent treatment plant. 4.5.1.3 KKSBP has established Significant Environmental Aspect Operation Control Yes and Monitoring Register dated 27/03/2019. The Register describes; Environmental aspect, operation control / monitoring and measurement, monitoring frequency and monitoring records. Example: Negative impact: Spillage / leakage of CPO from tankers. Mitigation: Isolate and mop with dry pressed fibre Monitoring: Collect the dry pressed fibre after cleaning the spillage to burn in the boiler. Promoting to positives: Combust at the mill boiler 4.5.1.4 Programme to promote the positives impact is identified in the CIP 2019. Yes The CIP has includes the positive impacts. Example: Establishing Significant Pollutants Assessment Plan - Increasing the awareness on GHG and its effect to environment during environmental meeting 4.5.1.5 Training schedule for year 2019 is establish dated 01/03/2019. Yes Training on Environmental Policy and objectives conducted on 03/06/2019 and 10/06/2019. 4.5.1.6 KKSBP has conducted environmental meeting for workers and staffs dated Yes 19/04/2019. The frequency of the meeting conducted is once a year. The latest environmental training is conducted on 19/04/2019. The next environmental training will be held on 19/04/2020. 4.5.2.1 KKSBP established yearly diesel consumption per ton of FFB processed for Yes year 2016 to 2018 with trending is captured.
MSPO-F04c / Rev 8 (2019/06) 25 of 36 MSPO Certification Summary Report Company Name: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Certifying Unit: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Client Number: 92-126
Audit Type: Stage 2 – Certification Audit
Principle 5: Environment, natural resources, biodiversity and ecosystem services Indicator Summary of Assessment Compliance Baseline value for diesel consumption year 2019 compared against the baseline and found increased due to increase in FFB process Significant Environmental Aspect Operation Control and Monitoring Register dated 27/03/2019 is review. To increase the electricity usage from turbine to reduce the consumption of electricity from TNB supply. 4.5.2.2 KKSBP has established records for diesel consumption and compare the Yes actual diesel usage with the budget for year 2019 is higher due to high FFB processed. 4.5.2.3 There is no use of renewable energy sighted in the mill. Sighted in the CIP, Yes the installation of methane biogas plant is establish to capture methane gas for power generation. 4.5.3.1 KKSBP has established waste management plan dated 09/08/2019. Yes Waste identification and source of pollution has been addressed; Domestic waste – Labour quarters Scheduled waste – empty chemical container POME – Industrial Effluent Treatment Plant GHG – FFB processing Dust, Air, Noise – boiler operation The waste management plan has includes waste identification, source of pollution, management plan, monitoring and action plan, PIC and status. 4.5.3.2 a Waste management plan include the monitoring and action plan for wastes and pollutions. Waste: Scheduled waste Source: Chemical container Monitoring plan: To contact waste collector every 6 month or when waste generates exceeds 20mt, whichever comes first. Sighted consignment number 2019042513ESRO1 dated 25/04/2019 for scheduled wastes collection. Yes b Waste generated from milling operation is identified and documented in the waste management plan. Stated in the plan palm kernel shell, mesocarp fibre, EFB are recycled to add value. Example: Palm shell sold as fuel. Mesocarp fibre used as fuel for boiler operation. 4.5.3.3 KKSBP has established SOP for Chemical handlings. Yes
MSPO-F04c / Rev 8 (2019/06) 26 of 36 MSPO Certification Summary Report Company Name: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Certifying Unit: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Client Number: 92-126
Audit Type: Stage 2 – Certification Audit
Principle 5: Environment, natural resources, biodiversity and ecosystem services Indicator Summary of Assessment Compliance 1. SOP Chemical handlings, SOP-MP12 issue/revision 01/01 dated 15/11/2018. 2. SOP Scheduled waste, SOP number MP 15, issue/revision 01/01/ dated 15/11/2018 describes on reference scheduled waste to comply with EQA regulation 2005 amended 2007. List of scheduled waste established in the waste management plan include used engine oil, hydraulic oil, empty chemical containers, oil filter and drums. Monitoring plan describes to contact scheduled waste collector every 6 month or when waste generated exceeds 20mt, whichever comes first. 4.5.3.4 Treatment and disposal plan for domestic waste included in the waste Yes management plan. Domestic waste: used paper, plastic bottles, containers, Action plan: collection 2 times / week, disposed at designated landfill area. 4.5.4.1 KKSBP has established waste management plan dated 09/08/2019. The Yes plan has includes polluting activities such as scheduled wastes, processing wastes, domestic wastes, greenhouse gases emission, dust, air quality and noise. All the wastes identified in the waste management plan is including solid, liquid and gases. Disposal and treatment method for scheduled wastes is through E – Swiss collection (contractor). Sighted consignment number 2019042513ES2RO1 dated 25/04/2019. GHG emission is identified – from FFB processing, use of fuel (CO²) and emission from POME. 4.5.4.2 Waste management plan for POME, Palm shell, Mesocarp fibre, EFB fibre Yes and Boiler flue Gas is established. The plan has includes; Action plan: - POME is treated by Treatment plant - Palm shell, mesocarp fibre, EFB fibre generated is sold as fuel and for boiler fuel. - Boiler Flue Gas treated by equipped with CEMS for monitoring for mill and DOE, smoke density meter. Action plan to reduce the waste is sighted. Example: Capturing methane gas from POME for power generation 4.5.4.3 Effluent discharge sample sent to private lab for analysis monthly. The result Yes submitted to DOE. Sighted monthly water analysis dated 13/08/2019 for discharge, pond, upstream and downstream test that exceed the permissible limit KKSBP has obtain approval letter from DOE for final discharge to achieve the parameter stated in the Jadual Pematuhan until 31/12/2019
MSPO-F04c / Rev 8 (2019/06) 27 of 36 MSPO Certification Summary Report Company Name: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Certifying Unit: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Client Number: 92-126
Audit Type: Stage 2 – Certification Audit
Principle 5: Environment, natural resources, biodiversity and ecosystem services Indicator Summary of Assessment Compliance 4.5.5.1 a KKSBP established water management plan for mill operation. Yes The source of water is from the river, pond and rain water. Water for mill process is from river and pond. Water for housing and office is from Syarikat Air Johor. b KKSBP conducted water effluent test dated 07/08/2019. Yes The water effluent is discharge through the waterways. There are several negatives impact contributed on discharge of effluent through waterways. KKSBP has obtain letter from DOE for approval of final discharge of effluent. There is negative impact contributed on discharge of effluent to waterways that caused contamination affecting the marine life in the water. Mitigation plan established; - Monthly monitoring BOD for final discharge c KKSBP has established monthly monitoring record for mill water Yes usage. Sighted records for mill water usage year 2019. Records for month of August is reviewed. . Workers housing water supply from Syarikat Air Johor and monthly used amount is monitored 4.5.5.2 KKSBP currently discharge treated POME to waterways. Yes In the CIP, sighted a plan to construct a biogas by 2020 for power generation.
Principle 6: Best Practices Indicator Summary of Assessment Compliance 4.6.1.1 KKSBP has established SOP for good mill practices for palm oil mill Yes operation dated 01/04/2019. Example: 1. SOP Sterilizer station issue no. SOP02, revision number 0, dated 18/04/2019. 2. SOP Press station issue no. SOP05, revision 0, dated 18/04/2019. KKSBP conducted training to the workers. Example: 1. SOP Sterilizer process conducted on 20/05/2019. 2. PPE suitability and compliance conducted on 17/04/2019 4.6.1.2 KKSBP conduct monthly test of POME effluent prior to discharge to Yes waterways. The latest test results conducted on 13/08/2019 is reviewed.
MSPO-F04c / Rev 8 (2019/06) 28 of 36 MSPO Certification Summary Report Company Name: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Certifying Unit: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Client Number: 92-126
Audit Type: Stage 2 – Certification Audit
Principle 6: Best Practices Indicator Summary of Assessment Compliance Stack emission is monitored using the Continuous Emission Management System to comply DOE legal requirements.
4.6.2.1 KKSBP has established 2 years business plan for year 2019/2020 dated Yes 09/08/2019. The business plan includes: - FFB Processed and CPO production. - Profit and loss accounts. - FFB cost and processing expenditures. - Capital expenditure. - Depreciation. - OER, KER - Mill improvement capital expenditure. The budget includes: - CPO sale price/mt, - PK sale price/mt - FFB price/mt. 4.6.3.1 KKSBP has established documentation for product purchasing. Yes Quotation for supplier to buy FFB dated 17/06/2018 includes. Products. - Price per unit. - Total price. Further check on purchase order and invoice the payment made is according to information stated in the quotation. Payment made to the FFB supplier according to the terms and conditions stated in the agreement. 4.6.3.2 KKSBP has established agreement with FFB dealers duly agreed and Yes signed by both parties. Therefore, is fair and transparent. The agreement includes: - FFB price based on MPOB recommendation. - Acceptance by both parties. 4.6.4.1 KKSBP has established contract agreement with FFB supplier duly signed Yes and accepted by both parties. 4.6.4.2 The general work order agreement between KKSBP and contractor is Yes reviewed and duly agreed and signed by both parties.
MSPO-F04c / Rev 8 (2019/06) 29 of 36 MSPO Certification Summary Report Company Name: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Certifying Unit: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Client Number: 92-126
Audit Type: Stage 2 – Certification Audit
Principle 6: Best Practices Indicator Summary of Assessment Compliance 4.6.4.3 General work order agreement work order dated 17/06/2019 includes the Yes statement of MSPO audit requirements.
4.4. Status of Non-Conformities Previously Identified
The stage 1 audit findings of this system have been reviewed, in particular to assure X appropriate corrections and corrective actions have been implemented to address the identified audit findings. The last audit results of this system have been reviewed, in particular to assure appropriate corrections and corrective actions have implemented to address any nonconformity identified. The last audit results of this system have been reviewed, in particular to assure appropriate corrections and corrective actions have not been implemented effectively. The non- conformity will be re-raised. Not applicable. No non-conformity raised in previous audit. Note 1: If a minor non-conformity raised in last audit, is not closed out, then this finding will be re-raised to a Major non- conformity. Note 2: All minor NCs raise in last audit are required to capture in this report together with the closing of the non-compliance.
4.5. Detail of Audit Findings Identified During last Audit Stage 1 audit findings corrective actions are reviewed during the stage 2 certification audit process.
4.6. Detail of Audit Findings Identified During This Audit This section gives an overview of the non-conformities raised during this audit.
AUDIT OUTCOME During this audit, 0 MAJOR Non-Conformities 1 MINOR Non-Conformities
Non Conformity Number < > Indicator # and 4.4.1.1: Social impacts should be identified and plans should be implemented to mitigate Description the negative impacts and promote the positive ones. Location: Description of Finding / Objective Evidence: 1. The monitoring plan is not established to promote and mitigate the negative. 2. The survey is not comprehensive that the local villagers outside the mill is not included. Classification Major Minor Raise by: Cheong, Chun Yuen (Robert) Date Raise: 19/08/2019 Deadline for implementation Next surveillance audit Root Cause Analysis (by company):
MSPO-F04c / Rev 8 (2019/06) 30 of 36 MSPO Certification Summary Report Company Name: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Certifying Unit: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Client Number: 92-126
Audit Type: Stage 2 – Certification Audit
Non Conformity Number < > Top management investigated between oil mill representative and Kim Kee Village representatives found out that only miscommunication within oil mill management whom is oil mill manager and Kim Kee community. Correction (by company): Top management from HQ (Hok Huat Group Sdn Bhd) immediately held a meeting with KKSBP oil mill manager to verify and justify the complaint lodged from the Kim Kee community dated at 19/08/2019. Letter of understanding subjecting to Kim Kee community requirement or complaint had been notified with suggestion of the action plan with the consent of HQ Corrective / Preventive Action (by company)
Appointed authorized personnel from HQ 7 KKSBP as committee team to attend & follow up Kim Kee community feedback and also group chat together with the Kim Kee representatives. The committee shall have open discussion throughout the group chat and follow up or meeting with Kim Kee community if necessary. Review of Correction & Corrective / Preventive Action The proposed corrective action plan with documents submitted are sufficient to address the NC. The effective implementation shall be review in the next audit Closed: Yes No Site verification : Yes No Name of Auditor: Date of Closure: Cheong Chun Yuen, Robert 14/09/2019 Review of Implementation
Name of Lead Auditor / Auditor: Date of Review:
Nr. Indicator Location Opportunity for Improvement 1 4.1.2.1 Office The management could consider to improve in addressing the findings raised in the internal audit. 2 4.4.2.1 Office The SOP could be improve to includes the timeline when the complaint required the committee to resolve. 3 4.4.2.3 Office The management could improve the location for accessibility of the complaint form by workers and the public. 4 4.4.4.2 (b) Office The management could improve the HIRARC to include risk rating after additional controls and control timeline for completion. 5 4.4.4.2 Office The management could improve the signage at the (c:ii) chemicals and hydrocarbon stores. 6 4.4.4.2 (d) Office The management could improve on PPE for workers handling boiler ash and fibre
MSPO-F04c / Rev 8 (2019/06) 31 of 36 MSPO Certification Summary Report Company Name: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Certifying Unit: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Client Number: 92-126
Audit Type: Stage 2 – Certification Audit
Nr. Indicator Location Opportunity for Improvement 7 4.4.4.2 (i) Office The management could improve on the first aid kits at workshop, boiler room and laboratory. 8 4.4.4.2 (j) Office The management could improve on the records and reporting for any incidents. 9 4.4.5.7 Office The management could review the overtime for ramp operator and water treatment plant operator. 10 4.6.4.1 Office The management may consider to improve the contract contents related to MSPO requirements.
MSPO-F04c / Rev 8 (2019/06) 32 of 36 5. CONCLUSION
Kilang Kelapa Sawit Bukit Pasir Sdn Bhd has commissioned TUV NORD (Malaysia) Sdn Bhd to conduct certification audit for its mill according to MSPO 2530-4:2013 Part 4 General Principles for Palm Oil Mills. There is 1 Minor NC raise with action plan submitted and accepted. Minor NC raise in this audit will be verify in the next surveillance audit. From the review of the standard operating procedures, relevant forms, work flow charts established and implemented; the subsequent background investigation and interviews conducted during this surveillance audit have provided TUV NORD Malaysia with sufficient evidence on the fulfilment of the applied standard Principles & Criteria. In conclusion the certified unit has been established, implemented and continued to improve in managing the estates are in line with the Principles & Criteria of the applied standards of MS 2530-4:2013. Part 4. As a result of this audit, the audit team confirms that: Projected FFB January to December 2019 337,000 mt Projected CPO January to July 2019: 65,230 mt Projected PK January to July 2019: 21,439 mt
6. RECOMMENDATION
The audit team conducted a process-based audit focussing on significant aspects/risks and objectives required by the standard(s). The audit methods used were interviews, observations, sampling of activities and review of documentation and records. The structure of the audit was in accordance with the audit plan included in to this summary report. The audit team concludes that the organisation has established and maintained its management system in line with the requirements of the standard(s) and demonstrated the ability of the system to achieve requirements for products and/or services within the scope and the organisation’s policy and objectives. Therefore the audit team recommends that, based on the results of this audit and the system’s demonstrated state of development and maturity that this management system certification be
X Recommended for Certification Recommended for Continuity of Certification Recommended for Suspension of Certification
Puchong, 01/11/2019 Puchong, 01/11/2019
Muhammad Khairul Anuar bin Azizul Hasan Nur Amanina Zahir TUV NORD (Malaysia) Sdn Bhd TUV NORD (Malaysia) Sdn Bhd Audit Team Leader Certifier / Approver
7. LIST OF INTERVIEWEES
Table 7-1: List of Interviewed Persons and Stakeholders
No. Name Organisation / Function
1 Tee Eldred Yoe Unity Sdn Bhd
2 Tee Tai Kong Kwang Wee Sdn Bhd
3 Law Han Liong Ramxent Enterprise
4 Ze Say Khim Aik Yong Trading
5 Yow Hong Kiat Yows Enterprise
6 Ng Wee Kwang Guan Eng Enterprise
7 Tan Juah Hang Oceanic Chemicals and Treatments Sdn Bhd
8 Hock Seng Hock Seng Enterprise
9 Ng We Tian Meng Villager
10 Lim Meng Sang Villager
11 Koo Jin Wen Villager
12 Hong Tiong Aik Villager
13 Lai Kuay Chong Village Head, Kampung bukit Pasir
14 Larra SJKC Kim Kee
15 Nor Ahmad Zainal bin Safiq Balai Polis Bukit Pasir
16 Mohd Hairi bin Jupri Balai Polis Bukit Pasir
MSPO Certification Summary Report Company Name: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Certifying Unit: Kilang Kelapa Sawit Bukit Pasir Sdn Bhd
Client Number: 92-126
Audit Type: Stage 2 – Certification Audit
Distribution / Confidentiality / Rights of ownership / Limitations / Responsibilities / Audit Objectives
This report is sent to the certification body or bodies, the members of the audit team and the audit representative of the organisation. All documents (such as this report) regarding the certification procedure are treated confidentially by the audit team and the certification body. This audit report remains the property of the certification body. An audit is a procedure based on the principle of random sampling and cannot cover each detail of the management system. Therefore nonconformities of weaknesses may still exist which were not expressly mentioned by the auditors in the final meeting or in the audit report. The responsibility for continuous effective operation of the management system always rests solely with the audited and certified organisation. Salvo clause: The audit report will be left to the organisation at the end of the audit - subject to approval by the certification body. The independent release process may cause modifications or additions. In these cases a modified revision will be sent to the audited organisation. The objective (goal) of the audit is to establish compliance of the management system of the aforementioned organization with the requirements of the aforementioned standard in order to achieve or maintain certification through an independent and accredited certification body. Identification of possibilities to improve the management system can also be a component of the audit and is considered simply to be an enhancement; it does not constitute consultancy or advice with regard to the management system. Annex / Enclosures
Annex / P&C Audit Report / Checklist(s) corresponding audit documentation Audit Plan Additional annexes, number
MSPO-F04c / Rev 8 (2019/06) 36 of 36