SIME DARBY PLANTATION SDN BHD SOU 21 Gunung Mas Grouping
SIME DARBY PLANTATION SDN BHD
RSPO Membership No: 1-0008-04-000-00
PLANTATION MANAGEMENT UNIT SOU 21 Gunung Mas Grouping Kluang, Paloh & Yong Peng, Johor, Malaysia INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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SURVEILLANCE ASSESSMENT REPORT ON RSPO CERTIFICATION
PUBLIC SUMMARY REPORT
SIME DARBY PLANTATION SDN BHD
RSPO Membership No: 1-0008-04-000-00
PLANTATION MANAGEMENT UNIT SOU 21 Gunung Mas Grouping Kluang, Paloh & Yong Peng, Johor, Malaysia
Certificate No: RSPO 901888 Original Issue Date: 19 May 2010 New Issue date: 19 May 2016 Expiry date: 18 May 2020
Assessment Type Assessment Dates Re-Certification 20 - 24 Apr 2015 Annual Surveillance Assessment (ASA-01) 22 - 25 Feb 2016 Annual Surveillance Assessment (ASA-02) Annual Surveillance Assessment (ASA-03) Annual Surveillance Assessment (ASA-04)
Intertek Certification International Sdn Bhd (formerly known as Moody International Certification (Malaysia) Sdn Bhd) 6-L12-01, Level 12, Tower 2, Menara PGRM No. 6 & 8 Jalan Pudu Ulu, Cheras, 56100 Kuala Lumpur, Malaysia. Tel: +00 (603) 9283 9881 Fax: +00 (603) 9284 8187 Email: [email protected] Website: www.intertek.com INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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TABLE OF CONTENTS
Section Content Page No 1.0 SCOPE OF ASSESSMENT 4 1.1 Introduction 4 1.2 Location (address, GPS and map) mill, estates and hectarage 4 1.3 Description of supply base (fruit sources) 5 1.4 Year of plantings and cycle 5 1.5 Summary of Land Use – Conservation and HCV Areas 6 1.6 Other certifications held and Use of RSPO Trademarks 6 1.7 Organizational information/contact person 6 1.8 Tonnages Verified for Certification 7-8 1.9 Time Bound Plan 8 1.10 Abbreviations Used 9 2.0 ASSESSMENT PROCESS 10 2.1 Assessment Methodology, Plan & Site Visits 10 2.2 Date of next scheduled visit 10 2.3 Qualifications of the Lead Assessor and Assessment Team 10 2.4 Certification Body 10 2.5 Process of Stakeholder consultation 11-12 3.0 ASSESSMENT FINDINGS 13 3.1 Summary of findings 13-47 3.2 Status of Identified Noncompliance and Corrective Actions, Observations and 47-52 Identified Positive Elements 3.3 Summary of Feedback Received from Stakeholders and Findings 52-54 4.0 ASSESSMENT CONCLUSION AND RECOMMENDATION 55 4.1 Acknowledgement of Internal Responsibility and Confirmation of Assessment Findings 55
4.2 Intertek RSPO Certification Details for the PMU 56
APPENDICES Appendix A Qualifications of the Lead Assessor and Assessment Team 57 Appendix B Assessment Plan 58-59 Appendix C Maps of location – Mill, Estates, Conservation and HCV areas 60-64 Appendix D Photographs of Assessment findings at the PMU 65-66 Appendix E Time Bound Plan for Other Plantation Management Units 67-70 INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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1.0 SCOPE OF ASSESSMENT
1.1 Introduction This Assessment was conducted on the Plantation Management Unit (PMU) Gunung Mas Grouping of Sime Darby Plantation Sdn Bhd (hereafter abbreviated as SDPSB), from 22-25 Feb 2016 , to assess the organization’s operations of the mill and its supply bases for compliance against the RSPO Principles and Criteria (Apr 2013), Malaysian National Interpretation (MYNI 2014) and the RSPO Supply Chain Certification Standard (Nov 2014) for the Palm Oil Mill.
The plantation management unit (PMU) or management unit is equivalent to a certification unit as defined in the RSPO Certification Systems Document. Each PMU consists of one mill and its supply bases which are made up of estates owned and/or managed by SDPSB.
1.2 Location (address, GPS and map) of palm oil mill and estates Gunung Mas Grouping consists of 1 palm oil mill, namely Gunung Mas Palm Oil Mill and 4 estates as indicated in Table 1 below, which includes the addresses and GPS locations of the mill and estates. The location maps are provided in Appendix C.
Table 1: Address of Palm Oil Mill, Estates and GPS Location
GPS Reference Name Address Latitude Longitude Gunung Mas Palm Oil Mill KKS Gunung Mas, K/B No. 524, 2.344º N 103.138º E (POM capacity: 60 MT/hr) 86009 Kluang, Johor, West Malaysia. Ladang Gunung Mas, K/B No. 512, Gunung Mas Estate 2.248º N 103.149º E 86009 Kluang, Johor, West Malaysia. Ladang Kempas Klebang, K/B No 105, Kempas Klebang Estate 2.218º N 103.172º E 86009 Paloh, Johor, West Malaysia. Ladang Bukit Paloh, K/B No 107, Bukit Paloh Estate 2.140º N 103.175º E 86009 Paloh, Johor, West Malaysia. Ladang Yong Peng, 83700 Yong Peng, Yong Peng Estate 2.085º N 103.143º E Johor, West Malaysia. INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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1.3 Description of supply base (fruit sources)
The supply base, i.e. FFB sources to the POM at Gunung Mas Grouping PMU, are from the abovementioned 4 estates and other certified estates of SDPSB. Verification done on site during the Assessment confirmed that there were no outgrowers / independent suppliers / smallholders involved in the supply of FFB to the said PMU.
Details of the planted hectarage for the FFB supply to the PMU are as shown in Table 2 below.
Table 2: Estate Area Summary
Area Summary (ha) Area Summary (ha) – 2014 / 2015 – 2015 / 2016 Estate Certified Planted Certified Planted (Titled) Area Area (Titled) Area Area Gunung Mas Estate 3,472.70 2,981.88 3,472.70 2,981.88 Kempas Klebang Estate 2,473.50 2,205.83 2,473.50 2,263.43 Bukit Paloh Estate 3,082.83 2,828.66 3,082.83 2,750.34 Yong Peng Estate 3,381.23 3,127.59 3,381.23 3,154.59 Total: 12,410.26 11,143.96 12,410.26 11,150.24 Notes: 1. This Assessment covered the overall land use for oil palm plantation areas, and the identified Conservation areas including HCV areas marked out at the estates. 2. The estates sampled for this Assessment have been selected based on their potential risks on social, environmental and biodiversity issues such as their proximity to forest reserves, hill sides, riparian zones and high conservation value areas.
1.4 Summary of plantings and cycle The 4 estates been developed beginning from 1987 and the latest being from 2012 (re-planting) and are all currently in the 1 st and 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 2015 / 2016
Mature OP (ha) Immature OP (ha) Estate Name Year of Planting Cycle of Planting – Above 3 years – 3 years & below
2009 – 2012 2nd cycle Gunung Mas Estate st 2,606.39 375.49 1987 - 2008 1 cycle 2012 2nd cycle Kempas Klebang Estate 2,011.40 252.03 1991-2005 1st cycle 2009 – 2012 2nd cycle Bukit Paloh Estate 2,660.54 89.80 1987 - 2008 1st cycle Yong Peng Estate 1993-2008 2 nd cycle 2,969.36 185.23 Total 10,247.69 902.55
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1.5 Summary of Land Use - Conservation and HCV Areas The summary of Conservation and HCV Areas as identified in the PMU during this assessment is as shown in Table 4 below:
Table 4: Conservation and HCV Areas
# Statement of Land Use (Ha) 2015 / 2015 2015 / 2016 (Re-Certification (Annual Surveillance Assessment) Assessment ASA-01) Hectarage – Ha Hectarage – Ha 1 Planted Area (ha) – Oil Palm
• Mature 10,233.15 10,247.69
• Immature 910.81 902.55 2 Conservation Area (ha)
• comprising buffer zones along small streams, hilly 58.66 58.66 areas, swampy and unplantable areas 3 HCV Area (ha)
• comprising buffer zones near forest reserves, water 70.45 70.45 catchments, burial & religious sites
1.6 Other certifications held and Use of RSPO Trademarks Presently the POM holds valid OHSAS 18001 and 5 S certifications for the Palm Oil Mill. 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” during the assessment.
1.7 Organizational information / Contact Person
At Head Office: Madam Shyalaja Devi Vasudevan Head, Sustainability Unit Level 3A, Main Block Sime Darby Plantation Sdn Bhd Wisma Guthrie, 21, Jalan Gelenggang, Bukit Damansara, 50490 Kuala Lumpur, Malaysia DID: 03-78484379 Fax: 03-78484356 Email: [email protected]
Name: Amran bin Sa’ri Mill Manager Ladang Gunung Mas, K/B No. 512, 86009 Kluang, Johor, West Malaysia Tel: 07 9341207 Fax: 07 9342427 Email: [email protected]
1.8 Tonnages Verified for Certification INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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1.8.1 The breakdown of all the suppliers and their tonnages of FFB supplied to the POM at Gunung Mas Grouping based on the reporting period for FY 2014 / 2015 are as shown in Table 5 below:
Table 5: Tonnages Verified for Certification (Reporting period 01 Jul 2014 until 30 Jun 2015) FFB # Estate /Supplier Processed Main Receiving Mill Certified By (MT) 1. Gunung Mas Estate 57,373.64 Gunung Mas POM Intertek 2. Kempas Klebang Estate 53,664.99 Gunung Mas POM Intertek 3. Bukit Paloh Estate 67,404.85 Gunung Mas POM Intertek 4. Yong Peng Estate 60,699.05 Gunung Mas POM Intertek Sub-total from SOU 21 239,142.53 Gunung Mas PMU own estates 5. Simpang Kiri Estate 895.66 Chaah POM BSI (18 Nov 2011) 6. Lambak Estate 13.23 Bukit Benut POM CUC (05 Oct 2011) 7. Bukit Benut Estate 0 Bukit Benut POM CUC (05 Oct 2011)
8. Sg. Labis & Sg Labis Utara Estate 22,436.23 Chaah POM BSI (18 Nov 2011) 9. CEP Nyior Estate 17,878.73 Bukit Benut POM CUC (05 Oct 2011) 10. Chaah Estate 1,496.17 Chaah POM BSI (18 Nov 2011) Sub-total from other certified 42,720.02 SDPSB PMUs estates Grand total 281,862.55
1.8.2 Total annual tonnages of FFB supplied from the supply base to Gunung Mas Grouping POM during the previous period, current assessment and projected period are as shown in Table 6 below:
Table 6: FFB Processed by POM for 3-Years Reporting Period
FFB Processed in FFB Processed in FFB Processed for 2014 / 2015 2015 / 2016 2016 / 2017 Estate / Supplier Actual Actual + Projected 5 months - Projected (01 Jul 2014 - 30 Jun 2015) (01 Jul 2015 - 30 Jun 2016) (01 Jul 2016 - 30 Jun 2017) MT % MT % MT % SOU 21 Gunung 239,142.53 84.84 212,149.46 93.01 210,519.42 100.00 Mas grouping Other certified SDPSB PMUs 42,720.02 15.16 15,948.23 6.99 0 0 estates Total 281,862.55 100.00 228,097.69 100.00 210,519.42 100.00 SCCS Module for SG / IP (see Note) IP IP POM Note: Based upon the revised RSPO Supply Chain Certification Standard (Nov 2014), the SG Module for CPO Mill has been re-designated as IP Module as the POM meets all the requirements for the IP Module.
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1.8.3 The annual certified tonnages of CPO and PK production by the PMU from the supply base/suppliers as assessed and verified during the current assessment (based on 2014 / 2015 data) are detailed as shown in Table 7 below:
Table 7: Total Certified Tonnages of CPO and PK for 3-Years Reporting Period
2015 / 2016 2016 / 2017 POM 2014 / 2015 - Actual + Projected - Actual + Projected Total certified FFB 281,862.55 228,097.69 210,519.42 Processed (MT) Total certified CPO OER: OER: OER: 62,037.95 50,523.64 46,419.53 Production (MT) 22.01% 22.15% 22.05% Total certified PK KER: KER: KER: 15,136.02 13,092.81 11,578.57 Production (MT) 5.37% 5.74% 5.50%
Note: 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 ‘Identity Preserved – IP’ module in accordance with the RSPO Supply Chain Certification Standard (Nov 2014) requirements. Verified activities and checked items for the SCCS of the POM are reported in section.3.1.1. The POM meets all the requirements for the IP Module.
1.9 Time Bound Plan
SDPSB Group operates 34 and 25 palm oil mills in Malaysia and Indonesia respectively with 200 oil palm estates. The organization is a member of RSPO since 08 Sep 2004 and has been taking an active role in the RSPO certification.
SDPSB had reviewed their Time Bound Plan (TBP) from time to time and had submitted a positive assurance statement to assure its commitment to continued compliance with RSPO requirements for all its certified and non- certified units.
Reference source: 1) RSPO: Annual Communication of Progress (ACOP) – 2014 by SDPSB http://www.rspo.org/members/acop/search?name=Sime+Darby&member_type=Ordinary&member_categ ory2=opg&acopyear=20142 http://www.rspo.org/file/acop2014b/submissions/sime%20darby%20plantation%20sdn%20bhd- ACOP2014b.pdf
2) RSPO Complaints and Case Tracking http://www.rspo.org/members/status-of-complaints?keywords=sime+darby&country=&category= http://www.rspo.org/members/complaints/status-of-complaints/view/29 http://www.rspo.org/members/complaints/status-of-complaints/view/46
Based on Intertek’s review on the progress made to-date, SDPSB is considered to have maintained its commitment under the 4.2.4 Partial certification requirements to ensure that there were no significant land conflicts, no replacement of primary forest or any area containing HCVs since Nov 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 units.
SDPSB had also updated its declaration on the one (1) plantation unit in Indonesia which has social and land dispute issues and the progress of resolution is still ongoing. These have been reviewed and updated in the Time Bound Plan as submitted by SDPSB.
Details of the present status of the Time Bound Plan as submitted by SDPSB are in Appendix E.
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1.10 Abbreviations Used
CB Certification Body LTA Lost Time Accidents CHRA Chemical Health & Risk Assessment Intertek 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 Organization 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 PMU Plantation Management Unit 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 KER Kernel Extraction Rate SOP Standard Operating Procedures INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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2.0 ASSESSMENT PROCESS
2.1 Assessment Methodology, Plan and Site Visits
Since 04 Jan 2016, Intertek has initiated public communications and notifications and invited the relevant stakeholders before the assessment to provide feedback and comments on their concern (if any) on Gunung Mas Grouping regarding the environmental, biodiversity, community development and other relevant issues.
From 22-25 Feb 2016, the Assessment Team conducted the assessment in which 2 out of the 4 estates of Gunung Mas Grouping namely the Yong Peng Estate and Kempas Klebang Estate, as well as the palm oil mill were assessed for 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 using the process approach auditing technique covered the palm oil mill and estate operations, agricultural practices, pest management, pesticide and fertilizer application, occupational health and safety, social accountability, environment and other requirements. Stakeholders’ interviews were conducted during the assessment and feedback obtained as part of information and evidence gathering. (See section 2.5 Process of stakeholder consultation).
Gunung Mas Grouping POM was also assessed against the requirements of RSPO Supply Chain Certification Standard (Nov 2014) 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 the ‘Identity Preserved’ - IP Module requirements. These include documented procedure, purchasing and goods in, record keeping, sales and goods out, processing, monitoring and traceability of the CSPO and CSPK quantities, training for staff and claims.
The details of the Assessment Plan (actual on-site) are provided in Appendix B.
After completion of the on-site field assessment, Intertek also performed the evaluation of conformity against the RSPO Certification System requirements for CB. The assessment report, findings and associated documents were evaluated through an independent review by the Intertek Internal Technical Reviewer/Panel prior to the approval of this report and decision on continued certification by Intertek.
2.2 Date of next scheduled visit The next scheduled visit will be the next Annual Surveillance Assessment which will be carried out within a 12- month period of the certificate anniversary date.
2.3 Qualifications of the Lead Assessor and Assessment Team Competency details of the Lead Assessor and Assessment Team are given in Appendix A.
2.4 Certification Body Intertek Certification International Sdn Bhd [formerly known as Moody International Certification (Malaysia) Sdn Bhd] is part of the Intertek Group, which is a worldwide technical services organization dedicated to reducing clients' risks by providing technical inspection services, management system certification in quality, environmental, occupational safety & health and product certification, RSPO SCC, ISCC, Marine Sustainability Chain-of-Custody, MTCS and PEFC Chain-of Custody certification in applicable industry sectors including the agricultural and forestry sectors. Intertek operates globally providing clients with a wide-ranging technical inspection expertise and access to thousands of skilled specialists worldwide. Intertek Group’s certification business is ranked in the top 10 worldwide, and is available globally offering certification across a wide range of industries.
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2.5 Process of stakeholder consultation Stakeholder consultations began with notification of the upcoming assessment through the websites of RSPO, SDPSB and Intertek. E-mails were sent to applicable stakeholders including government agencies, NGOs and local communities. E-mails and telephone enquiries were made prior to the actual assessment and stakeholder’s response and feedback received were followed up accordingly.
During the assessment, stakeholders were interviewed and their feedbacks were recorded. Among the stakeholders consulted were workers, trade union leaders, women representatives; local community leaders, representatives of government departments / agencies, NGOs, suppliers and contractors.
Details on stakeholders’ feedback, PMU response and Intertek verification / comments are provided in section 3.3.
Among the list of key stakeholders consulted was the following:
Government Agencies (by emails) 1. Department of Lands And Mines (Kuala Lumpur) 2. Department of Environment (Kuala Lumpur) 3. Department of Forestry Peninsular Malaysia (Kuala Lumpur) 4. Department of Immigration (Kuala Lumpur) 5. Department of Irrigation & Drainage (Kuala Lumpur) 6. Department of Labour (Kuala Lumpur) 7. Department of Occupational Safety & Health (Kuala Lumpur) 8. Department of Orang Asli Affairs (Kuala Lumpur) 9. Department of Wildlife & National Parks (Kuala Lumpur) 10. Department of Environment Johor 11. Department of Forestry Johor 12. Department of Immigration Johor 13. Department of Irrigation & Drainage Johor 14. Department of Labour Johor 15. Department of Occupational Safety & Health Johor 16. Department of Wildlife & National Parks Johor 17. Land and Mines Office Johor 18. Pertubuhan Keselamatan Sosial (SOCSO) 19. Pejabat Buruh (Kluang)
Statutory Bodies (by emails) 20. Malaysian Palm Oil Board (MPOB) - HQ 21. Malaysian Palm Oil Board (MPOB) - Northern Region 22. Malaysian Palm Oil Board (MPOB) - Central Region 23. Malaysian Palm Oil Board (MPOB) - Southern Region 24. Malaysian Palm Oil Board (MPOB) - Eastern Region 25. Malaysian Palm Oil Board (MPOB) - Sarawak Region 26. Malaysian Palm Oil Board (MPOB) - Sabah Region 27. Malaysia Palm Oil Association Kuala Lumpur (MPOA) 28. National Union of Plantation Workers (NUPW) 29. Malayan Agricultural Producers Association (MAPA) – HQ 30. Malayan Agricultural Producers Association (MAPA) – Southern Region 31. UNION – AMESU
NGOs and others (by emails) 32. All Women’s Action Society (AWAM) 33. BCSDM - Business Council for Sustainable Development in Malaysia 34. Borneo Child Aid Society (Humana) 35. Borneo Resources Institute Malaysia (BRIMAS) 36. Borneo Rhino Alliance (BORA) 37. Center for Orang Asli Concerns COAC 38. Centre for Environment, Technology and Development, Malaysia – CETDEM 39. Consumers Association Of Penang – CAP 40. EcoKnights INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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41. ENO Asia Environment 42. Environmental Protection Society Malaysia (EPSM) 43. Friends of the Earth, Malaysia 44. Global Environment Centre 45. HUTAN - Kinabatangan Orang-utan Conservation Programme 46. JUST - International Movement for a Just World 47. Malaysian CropLife & Public Health Association (MCPA) 48. Malaysian Environmental NGOs – MENGO 49. Malaysian National Animal Welfare Foundation – MNAWF 50. Malaysian Plant Protection Society (MAPPS) 51. National Council of Welfare & Social Development Malaysia – NCWSDM 52. Partners of Community Organisations (PACOS) 53. Penang Institute previously known as Socio-Economic & Environmental Research Institute (SERI) 54. Pesticide Action Network Asia and the Pacific (PAN AP) 55. Proforest - South East Asia Regional Office 56. R.E.A.C.H. – Regional Environmental Awareness Cameron Highlands 57. Sabah Wetlands Conservation Society (SWCS) 58. SEPA – Sabah Environmental Protection Association 59. SUARAM – Suara Rakyat Malaysia 60. SUHAKAM – National Human rights Society – Persatuan Kebangsaan Hak Asasi Manusia 61. Tenaganita Sdn Bhd 62. TRAFFIC – the wildlife trade monitoring network 63. Transparency International – Malaysian Chapter 64. Treat Every Environment Special Sdn Bhd (TrEES) 65. United Nations Development Programme – UNDP Malaysia 66. Wetlands International (Malaysia) 67. Wild Asia Sdn Bhd 68. World Wide Fund (WWF) - HQ
Local community (On-site interviews) 69. Consultative Committee & Gender representatives 70. Workers & Workers representatives 71. Village Heads & representatives 72. Suppliers & Contractors representatives INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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3.0 ASSESSMENT FINDINGS
3.1 Summary of findings
Principle 1: Commitment to transparency Criterion 1.1 Growers and millers provide adequate information to relevant stakeholders on environmental, social and legal issues relevant to RSPO Criteria, in appropriate languages and forms to allow for effective participation in decision making. Indicators Findings and Objective Evidence Compliance 1.1.1 There shall be The PMU had established and implemented the following documented Complied evidence that growers procedures for providing adequate information on environmental, social and millers provide and legal issues relevant to RSPO Criteria to relevant stakeholders for adequate information effective participation in decision making: upon request for information on (1) Standard Operating Procedure (SOP) Appendix 5 “Handling Social (environmental, social Issues” and/or legal) issues (2) Standard Operation Manual (SOM) Appendix 5.5.3.2 “Procedure for relevant to RSPO Criteria External Communication” to relevant stakeholders for effective participation The mill and estate management have responded effectively and in decision making. constructively to queries/requests from their stakeholders. This was Minor Compliance evident from records of meetings and correspondences with stakeholders (such as local authorities, union committees and local community leaders) maintained for FY Jul 2015-Jun 2016.
Date of public notification of this assessment of the PMU was made on 04 Jan 2016.
1.1.2 Records of requests The PMU had established and maintained an updated list of internal Complied for information and stakeholders, external stakeholders, government departments/agencies, responses shall be consultants, contractors, suppliers, transporters, neighbouring estates, maintained. etc. Major Compliance The POM and estates have conducted their stakeholders’ consultations on 23/04/2015 and 19/02/2016 respectively and records of feedback, requests and responses have been suitably maintained. No negative remarks or complaints/grievances were found.
Criterion 1.2 Management documents are publicly available, except where this is prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes. Indicators Findings and Objective Evidence Compliance 1.2.1 Management SDPSB’s policies were effectively displayed on notice boards and at Complied documents that are made accessible locations at the mill and estates offices. Policies are available available to the public in English and Bahasa Malaysia. shall include, but are not necessarily limited to: Management documents that are available to the public includes: Major Compliance - land titles/user rights, - occupational health and safety plan, - assessments relating to environment and social impacts, - pollution prevention plans, - details of complaints & grievances, - negotiation procedures INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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- continuous improvement plans - Public summary of certification assessment report
These publicly available documents include key indicators of performance like waste management and disposal plans for the mill and estates. Also, Continual Improvement Action Plans include targets for waste reduction and pollution prevention.
• Land titles/user rights Land titles/user rights have been maintained adequately. No outstanding Complied (Criterion 2.2); issues have arisen since the previous audit. Copies of all land titles were available and have been maintained at the mill and respective estates. HQ kept the original copies.
• Occupational health and Policy and HIRAC documented for the mill and estates. The HIRAC was Complied safety plans (Criterion also reviewed for the mill and estates. 4.7); Environment, Safety and Health (ESH) Plan have been established and implemented for FY 2015/2016. The OSH Plan is part of the ESH Plan. The ESH Plan includes the establishment and implementation of CHRA, medical surveillance, Fire Drill training, First Aid training, Audiometric test, PPE training, etc. POM has conducted the Emergency Preparedness (ERP). Safety Committee meetings held quarterly for year 2015. Programmes for protecting workers’ health and safety were satisfactorily implemented. • Plans and impact Environmental Aspect and Impact Assessment conducted for the POM Complied assessments relating to and estates and significant aspects identified. environmental and social impacts Social Impact Assessment carried out for the POM and estates. Positive and negative impacts documented. (Criteria 5.1, 6.1, 7.1 and 7.8); Management plans for social and environmental impacts assessment have been established, implemented and monitored for FY 2015/2016.
• HCV documentation The HCV Identification and Assessment was originally conducted in Jan Complied (Criteria 5.2 and 7.3); 2009 and documented as the Biodiversity Baseline Assessment Report. The HCV Re-Assessment for SOU 21 had been conducted by the PSQM Department of SDPSB and Final Report (version II) dated Apr 2015. It was verified that the Management Action Plans for HCV and Conservation areas were being implemented and monitored at the respective estates.
• Pollution prevention and Pollution Prevention Plans established for FY 2015/2016 include Complied reduction plans (Criterion measures for pollution control (smoke emission, effluent discharge), 5.6); schedule wastes (used lubricants, empty pesticides containers, used batteries, tyres), clinical waste and organic/domestic wastes disposal, reuse and recycling (paper, glass, scrap iron), pesticides reduction (POME, EFB and compost).
• Details of complaints Details of complaints and grievances for FY 2015/2016 have been Complied and grievances (Criterion addressed in the stakeholders meetings. 6.3); Records of complaints/enquiries from internal and external stakeholders were maintained. Actions found to be appropriately implemented and recorded. As to date, the PMU did not receive any complaints from any external stakeholders. INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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Employees Consultative Council (ECC) representatives interviewed had confirmed that there were no serious issues.
• Negotiation procedures Negotiation SOP – App 3 of Sime Darby Plantation Quality Management Complied (Criterion 6.4); System Manual had been documented. Current document in the SDP MS Manual dated 01 Nov 2008.
• Continual improvement Continual Improvements Plans have been established for social, safety Complied plans (Criterion 8.1); & health, environmental impacts, pollution prevention in the mill and estate operations for FY 2015/2016.
• Public summary of Public summary of certification assessment reports and their status are Complied certification assessment made publicly available as per usual RSPO procedure. report; • Human Rights Policy The Human Rights Policy has been documented and communicated to Complied (Criterion 6.13). all levels of the workforce and operations. Copies of the policy found to be displayed at prominent locations in the POM and estates.
Criterion 1.3 Growers and millers commit to ethical conduct in all business operations and transactions. Indicators Findings and Objective Evidence Compliance 1.3.1 There shall be a The Policy of commitment to a Code of Ethical Conduct and Integrity has Complied written policy committing to a code of ethical been documented and signed by the President and Group CEO of conduct and integrity SDPSB and communicated to all levels of the workforce and operations. in all operations and Copies of the policy found to be displayed at prominent locations in the transactions, which shall POM and estates. be documented and There is a booklet containing details of the Code of Ethics for employees communicated to all of SDPSB Group of Companies. levels of the workforce and operations. Minor Compliance
Principle 2: Compliance with applicable laws and regulations Criterion 2.1 There is compliance with all applicable local, national and ratified international laws and regulations. Indicators Findings and Objective Evidence Compliance 2.1.1 Evidence of The PMU has a Legal Register containing the applicable local and Complied compliance with relevant international laws and regulations. Compliance to each law and legal requirements shall regulation is monitored by the PMU. be available. The relevant legislations identified and listed cover safety and health, Major Compliance environment, pollution management, chemical handling, usage & storage, schedule waste management, labour laws, Unions, EPF, SOCSO, Housing and Amenities. Based on the site observations, interviews and records checking at the field and mill, there was evidence of compliance with the relevant laws, regulations, local and international laws at the PMU. There were no cases of any violation or actions imposed by relevant authorities. Statutory returns to relevant authorities found to be in compliance. Licenses and permits were monitored for their expiry dates and found to be renewed. Examples verified were: License for Foreign Workers INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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Employment, Workers Wages Deduction Permit, License for Controlled Items – Diesel and Fertilizer, MPOB license, DOSH Certificate, DOE license, BOMBA Fire Certificate, Energy Commission License, Insurance for foreign workers in estates. Environmental Quality Act 1974 and Environmental Quality (Scheduled Wastes) Regulations 2005: Scheduled wastes such as hydraulic and used motor oils, rags, empty chemical and lubricants containers collected at six monthly intervals by DOE licensed contractor. Weight and Measures Act 1972, regulations 16, 28A, 45): Weighbridges were duly calibrated. Factory and Machinery Act 1967, Regulations 1970: Steam engineers (Grade 1 and 2), boilermen and electricians were noted to be with valid certificates from relevant authorities (DOSH and Energy Commission). The POM has maintained a boiler register that indicate the date of commission, cleaned, inspected, tested or repaired. Valid certificates of fitness for boilers, sterilizers, air receivers, thermal deaerator, steam separator, vacuum oil dryer, etc. issued by DOSH. Valid license for diesel generators issued by Energy Commission (“Suruhanjaya Tenaga”). Valid licenses for authorized gas tester (ACT), authorized entrant and standby by person for confined space activities in POM. Occupational Health and Safety Act 1994: Safety and health meetings conducted at quarterly intervals. Noise Monitoring Report is available.
2.1.2 The PMU has established and implemented a documented system for Complied A documented system, identifying, determining, reviewing and updating applicable legal and which includes written other requirements. It included the listing of laws and regulations that information on legal were being monitored for changes and reference. requirements, shall be maintained. Minor Compliance 2.1.3 Evaluation of legal requirements and the PMU compliance status to each Complied A mechanism for ensuring legal requirement is monitored continuously. Latest evaluation was compliance shall be conducted on 04/01/2016. implemented. No licenses or permits found to be invalid or expired during the audit. Minor Compliance
2.1.4 A system for The Sustainability Team from SDPSB supports the PMU to ensure all Complied tracking any changes in applicable laws including international and ratified conventions the law shall be applicable in Malaysia to their operations are listed in their Legal implemented. Register. The PMU also track the changes in legal requirements. Minor Compliance Criterion 2.2 The right to use the land is demonstrated, and is not legitimately contested by local people who can demonstrate that they have legal, customary or user rights. Indicators Findings and Objective Evidence Compliance 2.2.1 Documents showing Copies of the land titles of the respective estates were maintained and Complied legal ownership or lease, history of land tenure found to be in proper order. The original copies are maintained by the (confirmation from Corporate Head Office. community leaders based Land titles were verified including payment of land tax during the audit. on history of customary Land ownership or lease found to be in order. There is no change in the land tenure, recognised land ownership since the last assessment. Native Customary Right (NCR) land) and the The legal use of the land was confirmed for the cultivation of oil palms actual legal use of the and agricultural use. land shall be available. INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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Major Compliance
2.2.2 There is evidence Locations of several boundary stones and pole markers were visited and Complied that physical markers are located and visibly verified to be within the boundary parameters of the estates. maintained along the legal Demarcation was also evidenced by the dug up trenches and drains boundaries particularly which were adjacent to neighboring estates. adjacent to state land, NCR land and reserves. Minor Compliance
2.2.3 Where there are or There has been no dispute on the land rights in the PMU. Not have been disputes, As such, the process of fair compensation and FPIC is currently not applicable additional proof of legal applied. acquisition of title and evidence that fair compensation has been made to previous owners and occupants shall be available, and that these have been accepted with free, prior and informed consent (FPIC). Minor Compliance
2.2.4 There shall be an The estate lands at the PMU are legally owned or leased by SDPSB and Complied absence of significant no other users were identified in the land area. land conflict, unless The existing estates are not encumbered by any customary land rights requirements for and there is no land conflict. acceptable conflict resolution processes (see Criteria 6.3 and 6.4) are implemented and accepted by the parties involved. Major Compliance
2.2.5 For any conflict or The estate lands at the PMU are legally owned or leased by SDPSB and Not dispute over the land, the no other users were identified in the land area. applicable extent of the disputed The existing estates are not encumbered by any customary land rights area shall be mapped out and there is no land conflict. Therefore participatory mapping is not in a participatory way with involvement of affected required. parties (including neighbouring communities and relevant authorities where applicable). Minor Compliance 2.2.6 To avoid escalation The estate lands at the PMU are legally owned or leased by SDPSB and Complied of conflict, there shall be no other users were identified in the land area. no evidence that palm oil No conflict or dispute over the lands in the PMU. operations have instigated No incident of violence being instigated in their current and planned violence in maintaining operations. peace and order in their current and planned operations. Major Compliance
Criterion 2.3 Use of the land for oil palm does not diminish the legal, customary or user rights of other users without their free, prior and informed consent. INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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Indicators Findings and Objective Evidence Compliance 2.3.1 Maps of an The estate lands at the PMU are legally owned or leased by SDPSB and Complied appropriate scale showing no other users were identified in the land area. the extent of recognised The existing estates are not encumbered by any customary land rights legal, customary or user and there is no land conflict. Therefore participatory mapping is not rights (Criteria 2.2, 7.5 and 7.6) shall be required. developed through participatory mapping involving affected parties (including neighbouring communities where applicable, and relevant authorities). Major Compliance 2.3.2 Copies of negotiated The estate lands at the PMU are legally owned or leased by SDPSB and Complied agreements detailing the no other users were identified in the land area. process of free, prior and No conflict or dispute over the lands in the PMU. informed consent (FPIC) There is no infringement of any legal rights that require free, prior and (Criteria 2.2, 7.5 and 7.6) informed consent (FPIC). shall be available and shall include: a) Evidence that a plan has been developed through consultation and discussion with all affected groups in the communities, and that information has been provided to all affected groups, including information on the steps that shall be taken to involve them in decision making; b) Evidence that the company has respected communities’ decisions to give or withhold their consent to the operation at the time that this decision was taken; c) Evidence that the legal, economic, environmental and social implications for permitting operations on their land have been understood and accepted by affected communities, including the implications for the legal status of their land at the expiry of the company’s title, concession or lease on the land. Minor Compliance 2.3.3 All relevant The estate lands at the PMU are legally owned or leased by SDPSB and Not information shall be no other users were identified in the land area. applicable available in appropriate No conflict or dispute over the lands in the PMU. As such, this process forms and languages, is not available for verification. including assessments of impacts, proposed benefit sharing, and legal INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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arrangements. Minor Compliance 2.3.4 Evidence shall be The estate lands at the PMU are legally owned or leased by SDPSB and Not available to show that no other users were identified in the land area. applicable communities are No conflict or dispute over the lands in the PMU. As such, this process represented through is not available for verification. institutions or representatives of their own choosing, including legal counsel. Major Compliance
Principle 3: Commitment to long-term Economic & Financial Viability Criterion 3.1 There is an implemented management plan that aims to achieve long-term economic and financial viability. Indicators Findings and Objective Evidence Compliance 3.1.1 A business or Palm Oil Mill had documented Business / Management Plan for the Complied management plan current FY 2015/2016 and the next three (3) years with details of budget (minimum three years) and costs of operation that include the following: shall be documented that includes, where (1) Mill extraction rates = OER and KER trends; appropriate, a business (2) Cost of Production = Cost/MT CPO trends; case for scheme smallholders. (3) Forecast prices; Major Compliance (4) Financial indicators = Capital Expenditure, Cost of labour & services, cost of supplies and equipment, depreciation costs, salary costs, management costs, cost of materials, etc.
The estates have Business / Management Plan for the current FY 2014/2015 and the next four (4) years with details of budget and costs of operation that include the following: (1) Replanting program (planting materials DxP seedling); (2) Crop projection = FFB yield/ha trends; (3) Cost of Production = Cost/MT FFB trends; (4) Forecast prices; (5) Financial indicators = Capital Expenditure, Cost of labour, cost of facilities, cost of materials, etc. Crop and operation budget cover weeding, manuring, harvesting, collection and transporting, pruning, drains and roads. The budgets also include provisions for sustainability efforts and improvement programmes (environmental aspects on road maintenance, domestic waste collection, maintenance of buffer zones). Mill and Estate Managers monitor the operational performance against Key Performance Indications and targets (costs, FFB yields, quality, productivity, pesticides usage, fertilizers usage, etc). There is evidence of monitoring of costs against budget to achieve specified targets. Performances are discussed in the monthly meetings held at the PMU and issues and actions needed are recorded for follow up in the next monthly meeting. The records of these meetings were available and verified during the audit. Monthly, quarterly, half-yearly and yearly reports are submitted to the HQ. INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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Principle 4: Use of appropriate best practices by growers and millers Criteria 4.1 Operating procedures are appropriately documented, consistently implemented and monitored. Indicators Findings and Objective Evidence Compliance 4.1.1 Standard Operating POM has documented SOPs for the following : Complied Procedures (SOPs) for 1. Standard Operation Manual (SOM) for Palm Oil Mill dated 01/11/2008 estates and mills shall be issue 1 ver 1:2008. documented. 2. Mill Quality Management System (MQMS)/SOM/08 Major Compliance 3. Occupational Safety & Health (OSH) Manual dated 20/08/2008 Issue 1 ver1:2008 4. Laboratory Process Control Manual dated 01/11/2008 issue 1 ver 1:2008. 5. Guideline on Plantation Security Upstream dated 11/10/2007 issue 1. 6. SOP for Sustainability Supply Chain and Traceability SD/SDP/PSQM/001 dated 21/03/2015.
The estates have the following SOPs: 1. Sime Darby Agricultural Reference Manual Issue 1 Year 2011 Ver 3. The manual describes operational procedure of nursery practices, land preparation, planting practices, ground cover maintenance, roads, immature stage, harvesting, collection of bunches, manuring, pesticide application, pests & diseases control. 2. Guidelines on River Reserve Management dated Aug 2014.
Relevant Key Performance Indicators (KPIs) specified for quality, environment, safety and cost control. 4.1.2 A mechanism to There is a mechanism to check the implementation of the SOPs: Complied check consistent implementation of - Internal audit by Group Corporate Assurance Dept. (report dated procedures shall be in 23/09/2015), place. - Field inspection by Agronomist; Minor Compliance - Plantation Advisory Report dated 13-16/07/2015), - Audit by Plantation Sustainability Quality Management (PSQM) Team. Records had been kept by the staff concerned for each operation to monitor the procedure and progress of work and these records would be checked by the Assistant Manager and the Manager regularly. These records had been verified to indicate satisfactory implementation during the visit. 4.1.3 Records of Records of monitoring and actions taken had been maintained for more Complied monitoring and any actions taken shall be than 12 months at the mill and estates. Overall, these records verified to maintained and available, be satisfactory. as appropriate. Daily Muster chits were available at estates. Minor Compliance During field visits, daily spraying records were available. 4.1.4 The mill shall record The mill did not source any FFB from third-party. The entire crop was Complied the origins of all third- supplied by the estates within the PMU grouping and other certified party sourced Fresh Fruit SDPSB estates as verified from the records that indicate the source Bunches (FFB). origin of FFB. Major Compliance
Criteria 4.2 Practices maintain soil fertility at, or where possible improve soil fertility to, a level that ensures optimal and sustained yield. Indicators Findings and Objective Evidence Compliance INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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4.2.1 There shall be Annual fertilizer inputs had been monitored through fertilizer Complied evidence that good agriculture practices, as recommendations made by SDPSB Research Station. contained in Standard Recommendations had been viewed and verified. Operating Procedures GAP for minimization of soil erosion and maintenance of soil fertility is (SOPs), are followed to maintained via the frond stacking and fertilizer application as per the manage soil fertility to a recommendation provided by the Agronomist. level that ensures optimal and sustained yield, These had been verified through the records for fertilizer application and where possible. observation during field visit. Evidences provided were verified as Minor Compliance following good agricultural practices. Soil sampling and leaf sampling records provided guide for the fertilizer application and all recommendations had been properly followed at estate levels. Noted that proper herbicide spraying had also been done. 4.2.2 Records of fertiliser Records of fertilizer application in accordance with agronomist’s Complied inputs shall be recommendations had been verified to be available and maintained. maintained. Minor Compliance
4.2.3 There shall be Leaf sampling and analysis had been carried out annually and soil Complied evidence of periodic tissue and soil sampling sampling and analysis on a 5 year cycle to determine the nutrient levels. to monitor changes in Fertilizer recommendations by the Agronomist for identified estate blocks nutrient status. to sustain the long term soil fertility and nutrient efficiency. Minor Compliance Records of the sampling and analysis had been verified to be satisfactory. 4.2.4 A nutrient recycling There is no EFB mulching at Yong Peng Estate and Kempas Klebang Complied strategy shall be in place, Estate (EFB mulching only carried out at Bukit Paloh Estate). and may include use of No POME application. Empty Fruit Bunches (EFB), Palm Oil Mill Effluent (POME), and palm residues. Minor Compliance
Criteria 4.3 Practices minimise and control erosion and degradation of soils. Indicators Findings and Objective Evidence Compliance 4.3.1 Maps of any Based on the estate soil map and field visits, there was no Complied fragile/marginal soils shall be available. fragile/marginal soil in the Yong Peng Estate and Kempas Klebang Major Compliance Estate. More than 50% of the areas in Yong Peng Estate are of Malacca or Durian series. The soil series in Kempas Klebang Estate are Serdang (24%), Rengam (23%) and local alluvium (16.5%). 4.3.2 A management The PMU has a SOP (Best Management Practice) for erosion control Complied strategy shall be in place during replanting or any activities involving earth disturbances. Steps for plantings on slopes taken are soil stabilization, run-off control and sediment trapping to between 9 and 25 mitigate the disturbed earth entering water ways. degrees unless specified otherwise by the Most of the areas in the estates are flat. Planting terraces constructed in areas within the 12 o to 20 o slope (< 0.5% of the planted hectarage) and company’s SOP. o Minor Compliance leguminous cover crop was sighted. There is no area with > 25 slope. No soil erosion noted during field visit. 4.3.3 A road maintenance Estate roads are in satisfactory status. The road maintenance Complied programme shall be in place. programme FY 2015/2016 established at the estates verified to be Minor Compliance satisfactorily implemented. 4.3.4 Subsidence of peat The only estate in the PMU with peat soil is Bukit Paloh Estate (190 ha Not soils shall be minimised of peat soil) which is not under audit during this assessment. Applicable INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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and monitored. A documented water and ground cover management programme shall be in place. Major Compliance
4.3.5 Drainability The only estate in the PMU with peat soil is Bukit Paloh Estate (190 ha Not assessments where Applicable necessary will be of peat soil) which is not under audit during this assessment. conducted prior to replanting on peat to determine the long-term viability of the necessary drainage for oil palm growing. Minor Compliance
4.3.6 A management Based on the estate soil maps and visit to the estates, there were no Not strategy shall be in place Applicable for other fragile and other fragile and problematic soils noted. problem soils (e.g. podzols and acid sulphate soils). Minor Compliance
Criteria 4.4 Practices maintain the quality and availability of surface and ground water. Indicators Findings and Objective Evidence Compliance 4.4.1 An implemented Documented water management plan verified to be in place for the palm Complied water management plan shall be in place. oil mill and estates. Minor Compliance Water samples were taken at monthly interval at the final discharge point of the palm oil mill effluent pond and at upstream and downstream of waterways. Tests conducted for pH, BOD, COD, Total Solids, Suspended Solids, Oil & Grease, Ammonia Nitrogen and Total Nitrogen. Analysis results meet the DOE requirements. The water supply for domestic use to staff and workers’ housing is piped water from the water treatment plant operated by the water utility company, Syarikat Air Johor. It is a requirement for the water utility company to ensure that tests are carried out on parameters to meet the Ministry of Health Specification for Drinking Water Quality. Water supply for the mill goes through the Mill Water Treatment Plant. Verified that rainfall data was also monitored as part of the water management plan. 4.4.2 Protection of water Riparian buffer zone of 20 m had been sighted on both sides of river Complied courses and wetlands, tributaries/streams in the estates. including maintaining and restoring appropriate Appropriate signages were placed and workers are aware of the non- riparian and other buffer usage of chemicals within the buffer zones. zones (refer to national There was no construction of bunds/ weirs/dams across the main rivers best practice and national or waterways passing through the estates. guidelines) shall be demonstrated. Thus the corrective action taken on previous assessment Major Major Compliance NC# NR-01 verified to be effective. 4.4.3 Appropriate The water at the final discharge point of the palm oil mill effluent pond Complied treatment of mill effluent was analyzed at monthly intervals for pH, BOD, COD, Total Solids, to required levels and Suspended Solids, oil & grease, Ammoniacal Nitrogen and Total regular monitoring of Nitrogen. Analysis results meet the DOE requirements. discharge quality, shall be in compliance with BOD level had been in the range of 180 to 675 ppm with an average of national regulations 371 ppm for the period Jan – Dec 2015. (Criteria 2.1 and 5.6). Approved BOD level by DOE was 500 ppm maximum. Minor Compliance INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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4.4.4 Mill water use per Water usage in the mill from Jul 2015 till Feb 2016 ranged from 0.74 to Complied tonne of Fresh Fruit 1.00 m 3/tonne FFB with an average of 0.86 m 3/tonne FFB (industrial Bunches (FFB) (see norm is 1.2 to 1.5 m 3/tonne FFB). Criterion 5.6) shall be monitored. Minor Compliance
Criteria 4.5 Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate Integrated Pest Management techniques. Indicators Findings and Objective Evidence Compliance 4.5.1 Implementation of IPM Plan includes the planting of beneficial plants and control of damage Complied Integrated Pest Management (IPM) plans by rodents. shall be monitored. Beneficial plants such as Euphorbia Heterophylla, Turnera subulata, Major Compliance Cassia cobanensis, and Antigonon leptopus are grown in the estates. Estates have beneficial plants grown in accordance to recommendations and programme. Noted that Euphorbia Heterophylla is very effective for attracting predators for bagworms. Rat baiting carried out twice a year. Each campaign of 2 to 5 rounds at interval of 4 days with placement of one bait per tree. No other pests noted. 4.5.2 Training of those IPM training conducted by for all those involved in IPM implementation. Complied involved in IPM implementation shall be Training records for staff and workers were available and was verified on demonstrated. site to be satisfactory. Minor Compliance Criteria 4.6 Pesticides are used in ways that do not endanger health or the environment. Indicators Findings and Objective Evidence Compliance 4.6.1 Justification of all Written justification in Standard Operating Procedures of all Complied pesticides used shall be agrochemicals use had been reviewed and found acceptable. demonstrated. The use of Types of agrochemicals used for: selective products that are (1) spraying circles – glyphosate (Kenlon) specific to the target pest, weed or disease and (2) spraying woodies - Ally. which have minimal effect on non-target species shall be used where available. Major Compliance 4.6.2 Records of Records of pesticides use are available. However, the record did OBS # pesticides use (including not indicate clearly the area treated, amount of active ingredients OCL-01 active ingredients used applied per ha and number of applications. and their LD50, area An Observation was raised. treated, amount of active ingredients applied per ha and number of applications) shall be provided. Major Compliance
4.6.3 Any use of It had been the policy of the estates to minimize the use of pesticides in Complied pesticides shall be accordance with IPM plan. minimised as part of a plan, and in accordance The pesticide reduction program is monitored on usage per hectare with Integrated Pest basis. Overall, there has been a decline in pesticide usage per hectare Management (IPM) plans. on a year to year basis. There shall be no No prophylactic use of pesticides had been carried out at the estates for prophylactic use of the period concerned. pesticides, except in INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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specific situations identified in industry’s Best Practice. Major Compliance
4.6.4 Pesticides that are Use of paraquat has ceased since Dec 2008 for SDPSB Group Estates. Complied categorised as World First Aid kits found to be available during pesticide spraying and was Health Organisation Class viewed and checked during field visit. 1A or 1B, or that are listed Portable signboards noted to be displayed at areas of spraying activity. by the Stockholm or Rotterdam Conventions, and paraquat, are not used, except in specific situations identified in industry’s Best Practice. The use of such pesticides shall be minimised and eliminated as part of a plan, and shall only be used in exceptional circumstances. Pesticides selected for use are those officially registered under the Pesticides Act 1974 (Act 149) and the relevant provision (Section 53A); and in accordance with USECHH Regulations (2000). Minor Compliance
4.6.5 Pesticides shall only All pesticide operators ((all directly employed) have attended training on Complied be handled, used or the safe handling and application of pesticides in compliance with applied by persons who Regulation 22 of the Pesticides Act 1974. have completed the necessary training and Appropriate safety and application equipment (safety boots, safety shall always be applied in helmets, rubber boots, cartridge masks, safety goggles, gloves, overalls) accordance with the have been provided and used by the pesticides operators. product label. Appropriate All precautions attached to the pesticides (MSDS) have been observed, safety and application equipment shall be applied and understood by the workers. provided and used. Programme and training records verified to be satisfactory. All precautions attached The training include spraying technique, precautions and symptoms of to the products shall be symptoms of toxic reactions such as skin disorders, rashes, mouth and properly observed, throat pain, breathing difficulties or nail problems. applied, and understood by workers (see Criterion The PMU has adequate facilities for mixing of pesticides and cleaning up 4.7). after work. There are suitable storage areas for PPE. Major Compliance 4.6.6 Storage of all Storage of pesticides found to be kept under lock and key and its use in Complied pesticides shall be accordance with the Occupational Safety and Health Laws and according to recognised Regulation 9 of the Pesticides Act 1974. best practices. All Emergency shower and eye wash are available near the pesticides store pesticide containers shall be properly disposed of in case of accidents. and not used for other Material Safety Data Sheets (MSDS) are available in the store. The purposes (see Criterion MSDS are in English and Bahasa Malaysia (understood by the workers). 5.3). Pesticides shall be Used chemical containers were either reused as containers for spraying stored in accordance to solution. For disposal as scheduled waste, empty pesticide containers the Occupational Safety and Health Act 1994 (Act are triple rinsed and pierced at the bottom. 514) and Regulations and Orders, Pesticides Act 1974 (Act 149) and Regulations. Major Compliance INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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4.6.7 Application of Pesticides had been applied using the Best Management Practices that Complied pesticides shall be by minimize risk and impacts. The pesticide operators found to understand proven methods that the use of the right nozzle, spray drift, spray quality and run-off. minimise risk and Programme and training records verified to be satisfactory. impacts. Minor Compliance
4.6.8 Pesticides shall be It is the policy of the company not to carry out aerial application of Complied applied aerially only where there is pesticides. This policy has been followed by the PMU. documented justification. Communities shall be informed of impending aerial pesticide applications with all relevant information within reasonable time prior to application. Major Compliance
4.6.9 Evidence of The Annual Training Plan includes training on pesticides handling. All Complied continual training to new pesticides operators were trained before being assigned to work enhance knowledge and with pesticides. In addition, based upon training needs, the existing skills of employees and pesticide operators (including the contractor’s workers) attended associated smallholders on pesticide handling continual training to enhance their knowledge and skills on pesticides shall be demonstrated or handling. made available. (see Information and safety precautions on the pesticides displayed on the Criterion 4.8). notice board and next to the pesticides in the store. Minor Compliance
4.6.10 Proper disposal of Scheduled waste had been disposed of through licensed contractor Complied waste material, according to procedures that are approved by DOE. Records of scheduled waste verified to be in order. fully understood by workers and managers shall be demonstrated (see Criterion 5.3). Minor Compliance
4.6.11 Specific annual Annual medical surveillance for all pesticide operators had been Complied medical surveillance for pesticide operators, and implemented. Latest medical surveillance carried out for pesticide documented action to operators in Yong Peng Estate on 06 Jan & 02 Feb 2016 and in Kempas treat related health Klebang Estate on 02-09 Dec 2015 and 18 Dec 2015. conditions, shall be It was verified that the CHRA recommendations has been satisfactorily demonstrated. followed. Major Compliance Medical surveillance reports of individual sprayers were checked and no abnormalities reported by the Medical doctor. The medical reports showed that there was no case of low blood cholinesterase levels. Any worker with such health condition is unfit for work with pesticides. No such cases in the PMU as at the date of assessment. Pesticides operators were interviewed during field visits and feedback received that they do not have any symptoms of toxic reactions such as skin disorders, rashes, mouth and throat pain, breathing difficulties or nail problems. 4.6.12 No work with Verified from records, field inspections and interviews that no pregnant Complied pesticides shall be undertaken by pregnant or breast-feeding woman had been offered work as pesticide operator. or breast-feeding women. Major Compliance
Criteria 4.7 An occupational health and safety plan is documented, effectively communicated and implemented. INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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Indicators Findings and Objective Evidence Compliance The occupational health Occupational Safety and Health (OSH) Plan in compliance with OSH Act Complied and safety plan shall and Factory Machinery Act was documented and implemented. cover the following: OSH Policy found to be clearly displayed at POM and in the estates office. Adequate posters, regulations, newsletters were prominently 4.7.1 An occupational health and safety policy displayed on notice boards. Interviewed workers demonstrated shall be in place. An awareness towards occupational safety and health. occupational health and The HIRAC was reviewed for the mill and estates. safety plan covering all The Safety & Health Officer is in charge of safety and health planning, activities shall be operation & coordination. Mill/Assistant Mill Managers and Estate documented and implemented, and its Managers / Assistant Estate Managers are also directly involved. effectiveness monitored. Records on training had been verified on the Palm Oil Mill and the Major Compliance Estates. Analysis on the understanding of training by the workers on the PMU had been verified.
4.7.2 All operations where Risk assessment carried out on operations where health and safety is an Complied health and safety is an issue in order to determine the significant hazards. Significant hazards issue shall be risk determined and documented include noise exposure, assessed, and pesticides/chemicals exposure, accident, fire. Procedures and actions procedures and actions shall be documented and implemented to mitigate the hazards. implemented to address There was an assessment of noise levels in the POM and Consultant the identified issues. All Report is pending. There was an assessment of noise levels in the POM precautions attached to conducted by a consultant on 12/11/2009. The report identified the work products shall be properly areas with high noise levels, viz., boiler station, engine room and observed and applied to sterilization unit where noise level exceeded 85 db. the workers. Mill management have taken steps to reduce the noise levels by more Major Compliance frequent lubrication of machinery, reducing the exposure time to high noise and mandatory use of ear plugs and ear mufflers. Annual audiometric test conducted for all mill staff and workers. The latest audiogram was carried out on 23/07/2015 and 02/12/2015. The audiometric reports of two employees indicated as having hearing impairment and recommended to wear hearing protector. Baseline audiogram and occupational and medical history records of workers maintained. The employees exposed to high noise levels were interviewed. The workers are aware of the danger of hearing loss due to prolonged exposure to high noise. The workers knew about the complaints process and mechanism available. “Permit to work” system applied at the POM. Staff and workers have been trained and certified by NIOSH for gas entrant and stand-by involving work in confined space. Appropriate PPE (safety boots, safety helmets, rubber boots, cartridge masks, safety goggles, gloves, overalls, ear plugs, ear mufflers) verified to be provided to and being used by the workers. Associated training provided to address safety and health issues. Warning signs sighted at high noise areas and ear plugs and ear mufflers to be worn. There are also warning signs to use other PPE such as helmet and safety boots. An audit for determining compliance with the minimum standards had been conducted on all types of PPE used. Adequate fire extinguishers and hose reels found to be located at strategic locations, operational and maintained in good conditions. Location map of fire extinguishers is available. First Aid equipment was available at POM, estates and at worksites. Samples of First Aid box was checked and contents found to be complete and in usable order during field visit. Training for workers in INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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First Aid was carried out in the mill and estates and records maintained. The POM and estates have established their accident reporting KPI and incident monitoring implemented. Yearly reporting of JKKP8 regulations was submitted to JKKP on time, i.e. in Jan of each year. The Safety & Health Officer maintains records on the rate of accidents to workmen, trends in rate of accidents, fatalities and non-fatalities captured to prevent mishaps.
4.7.3 All workers involved Training programme for year FY 2015/2016 includes training for all Complied in the operation shall be adequately trained in safe categories of workers. working practices (see Mill: Workers exposed to machinery and high noise level and confined to Criterion 4.8). Adequate space. Fire drill exercises were conducted. and appropriate protective equipment shall be Estates: Training for harvesters, pesticide operators, manuring activities available to all workers at on safety measures were conducted on annual basis. Last carried out the place of work to cover was in Feb 2016. Records were viewed at the office during audits. all potentially hazardous operations, such as pesticide application, machine operations, and land preparation, harvesting and, if it is used, burning. Major Compliance
4.7.4 The responsible The responsible person (usually the Mandore or Headman) had been Complied person/persons shall be identified. identified. There shall be Records of regular meetings between the responsible person and records of regular workers to discuss about health and safety had been verified to be meetings between the responsible person/s and satisfactory. workers. Concerns of all parties about health, safety and welfare shall be discussed at these meetings, and any issues raised shall be recorded. Major Compliance
4.7.5 Accident and Accident and emergency procedures had been written in English and Complied emergency procedures Bahasa Malaysia and briefed to staff, workers, contractors and visitors. shall exist and instructions Workers trained in First Aid were present in the mill and field operations. shall be clearly First Aid Kits were available at worksites. Records on all accidents had understood by all workers. Accident procedures shall been verified to be maintained satisfactorily. be available in the Quarterly review on accident cases had been carried out during quarterly appropriate language of meeting of Environment, Safety, & Health (ESH) the workforce. Assigned operatives trained in First Aid should be present in both field and other operations, and first aid equipment shall be available at worksites. Records of all accidents shall be kept and periodically reviewed. Minor Compliance
4.7.6 All workers shall be Medical care had been provided to all the workers. Complied provided with medical care, and covered by Local workers are covered by SOCSO, whereas foreign workers are accident insurance. covered by Foreign Workers Compensation Scheme with RHB Minor Compliance INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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Insurance Berhad. 4.7.7 Occupational Records on Lost Time Accident (LTA) metrics had been verified to be Complied injuries shall be recorded using Lost Time Accident satisfactory. (LTA) metrics. Minor Compliance
Criteria 4.8 All staff, workers, smallholders and contract workers are appropriately trained. Indicators Findings and Objective Evidence Compliance 4.8.1 A formal training A formal training programme on all aspects of RSPO Principles and Complied programme shall be in place that covers all Criteria and the Supply Chain Certification System have been aspects of the RSPO established and implemented. Principles and Criteria, Training for various categories of operators, including all field and mill and that includes regular staff, with regards to their duties and training needs had been reviewed assessments of training and found acceptable. needs and documentation of the programme. Major Compliance
4.8.2 Records of training Records of training for each employee had been verified to be Complied for each employee shall be maintained. satisfactory in the Mill and Estates. Minor Compliance
Principle 5: Environmental responsibility and conservation of natural resources and biodiversity Criterion 5.1 Aspects of plantation and mill management, including replanting, that have environmental impacts are identified, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continual improvement. Indicators Findings and Objective Evidence Compliance 5.1.1 An environmental Environmental Aspect and Impact Assessment (EAIA) had been Complied impact assessment (EIA) conducted for the POM and estates and significant aspects identified. shall be documented. The EAIA for the mill and estates were reviewed in Jul 2015 for the Major Compliance financial year 2015/2016. The review process had included stakeholders’ consultation with regards to environmental aspects & impacts, pollution control, ERT, HCV and land usage issues. The environmental improvement plan and pollution prevention plan for the estates was reviewed on 02 Jul 2015. 5.1.2 Where the Management plans/action plans for mitigation of impacts, timeframe for Complied identification of impacts action and responsible persons were identified and had been requires changes in implemented and monitored for FY Jul 2015-Jun 2016. current practices, in order to mitigate negative The Mill and respective Estate Managers have been identified as effects, a timetable for persons responsible for their respective management plans. change shall be For the POM and estates, there were no identified impacts that require developed and changes in current practices since the establishment of the above implemented within a comprehensive documents. management plan. The management plan shall identify the responsible person/persons. Minor Compliance
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5.1.3 This plan shall The Management Plan/Action Plan incorporated the monitoring of the incorporate a monitoring effectiveness of the mitigation measures and were reviewed on an protocol, adaptive to annual basis. The Water Management Plan for the estates for financial operational changes, year 2015/2016 was reviewed on 08 Aug 2015 and the Environmental which shall be implemented to monitor Improvement Plan/Pollution Prevention Plan reviewed on 02 Jul 2015 the effectiveness of the respectively. mitigation measures. The The plans include mitigation measures for pollution prevention, disposal plan shall be reviewed as of schedule waste, domestic waste and clinical waste, waste recycling; a minimum every two storage and application of pesticides, planting of beneficial plants, years to reflect the results of monitoring and where maintenance of riparian buffer zones and conservation activities, there are operational training, awareness and briefings related to environmental awareness changes that may have activities. positive and negative environmental impacts. The paint marking on the trees for demarcation of the buffer zone Minor Compliance had faded and therefore making the extent of boundary unclear. OBS # In addition, old and worn out signages at various locations (e.g. SH-01 ponds and river buffer zones) need to be refurbished or replaced. An Observation was raised. Criterion 5.2 The status of rare, threatened or endangered species and other High Conservation Value habitats, if any, that exist in the plantation or that could be affected by plantation or mill management, shall be identified and operations managed to best ensure that they are maintained and/or enhanced. Indicators Findings and Objective Evidence Compliance 5.2.1 Information shall be The HCV Identification and Assessment was originally conducted in Jan Complied collated in a High 2009 and documented as the Biodiversity Baseline Assessment Report. Conservation Value The HCV Re-Assessment for SOU 21 had been conducted by the (HCV) assessment that PSQM Department of SDPSB and Final Report (version II) dated Mar includes both the planted area itself and relevant 2015. wider landscape-level It was verified that the Management Action Plans for HCV and considerations (such as Conservation areas were implemented and monitored at the respective wildlife corridors). estates. Major Compliance The report had covered the overall landscape of the PMU region, has considered the potential HCV areas which are bordering with any forest reserve and had incorporated feedbacks provided by villagers and various governmental agencies such as Department of Forestry and Wildlife Department. The PMU estates (Yong Peng and Kempas Klebang estate) are surrounded by other palm oil estates. The Kempas Klebang Estate has certain areas bordering the Labis Tengah Forest reserves. The HCV Re-Assessment reported a small HCV area inside Kempas Klebang Estate comprising of buffer zones near forest reserve, ponds, burial and religious sites. The areas bordering the forest reserves and stretches of riparian buffer zones along the Sungai Bekok and Sungai Merbuk that passes through the Gunung Mas Estate and Yong Peng Estate respectively have been identified as conservation/environmentally sensitive areas. 5.2.2 Where rare, Latest re-assessment of HCV conducted on Apr 2015 by SDPSB Complied threatened or endangered Sustainability Department indicated only HCV 4, 5 & 6 areas within the (RTE) species, or HCVs, PMU and no presence of RTE species. are present or are affected by plantation or Management Plan/Action Plan documented in all the estates with mill operations, specific actions to be taken by the Estate Manager/Assistant Manager appropriate measures that for the identified HCV areas. In addition, the assessment has also taken are expected to maintain into consideration, especially at Kempas Klebang estate, the presence and/or enhance them of water catchment areas and Labis Forest Reserve. shall be implemented The conservation/environmentally sensitive areas were inspected on site INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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through an action plan. and found to be maintained satisfactory. Major Compliance
5.2.3 There shall be a There is evidence to continuously prevent and discourage any illegal or Complied programme to regularly inappropriate hunting, fishing or collecting activities via the signages educate the workforce erected and regular patrols to monitor any prohibited activities. about the status of these RTE species, and The training programme to regularly educate the workforce and appropriate disciplinary community about the status of RTE species was established with measures shall be ongoing consultation with the Wildlife Department. The workforce and instigated in accordance local communities have been made aware to report the sighting of with company rules and various types of wildlife. Record of the training was also made available national law if any during the audit. individual working for the company is found to capture, harm, collect or kill these species. Minor Compliance 5.2.4 Where an action Management plans were established and monitoring outcomes were Complied plan has been created reviewed by the estate managers. Ongoing monitoring of the there shall be ongoing monitoring: management plan on the status of RTE species and HCV was noted. • The status of HCV and Regular monitoring of the forest boundary was also conducted by the RTE species that are auxiliary police and fed back to the management. affected by plantation or mill operations shall be documented and reported; • Outcomes of monitoring shall be fed back into the action plan. Minor Compliance
5.2.5 Where HCV set- It was verified that there has been no instance of HCV set-aside that Not asides with existing rights conflicts with the rights of local communities at this PMU. Thus Applicable of local communities have been identified, there shall negotiated agreement of such nature is not applicable. be evidence of a negotiated agreement that optimally safeguards both the HCVs and these rights. Minor Compliance
Criterion 5.3 Waste is reduced, recycled, re-used and disposed of in an environmentally and socially responsible manner. Indicators Findings and Objective Evidence Compliance 5.3.1 All waste products Waste products and sources of pollution have been identified and Complied and sources of pollution documented at the PMU: scheduled waste, clinical waste, domestic shall be identified and waste, recyclable wastes (metal, plastic, paper, glass) and mill wastes documented. (EFB, fibre, boiler ash, POME). Major Compliance Scheduled Waste identified included spent lubricant oil (SW 305), spent hydraulic oil (SW 306), used chemical containers/drums (SW 409) and used filters (SW 410). Clinical waste identified included cotton, glove, vial, ampoule, and syringe needle (SW 404). Visits made to POM and estates (Kempas Klebang and Yong Peng Estates) showed that all waste products and sources of pollution were INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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identified and documented. It was verified on-site that the records and related documentation has been satisfactorily maintained at the POM and estates.
5.3.2 All chemicals and The mill and estates have a proper and secured Scheduled Waste Store Complied their containers shall be for storing scheduled waste until time of disposal. Disposal of scheduled disposed of responsibly. waste by a DOE licensed waste disposal contractor, Petrojadi Sdn Bhd. Major Compliance The disposal of used chemicals and containers and waste were carried out according to the schedule on waste management as planned. Chemicals and empty containers were appropriately segregated and stored prior to disposal. Fertiliser bags are recycled. All scheduled wastes have been disposed by licensed contractors within 180 days as stated. Disposal of scheduled wastes verified to be in compliance with EQ (Scheduled Waste) Regulation 2005. The scheduled waste disposal was done with proper documentation submitted by the DOE licensed SW contractor, which is adequately filed and available at site.
5.3.3 A waste The mill and estates have documented and implemented waste Complied management and management and disposal plans to avoid or reduce pollution. These disposal plan to avoid or operational plans covered the waste products and sources of pollution reduce pollution shall be identified in the mill and estates. The plan was reviewed on Dec 2015 documented and implemented. for financial year 2015/2016. Minor Compliance Segregation of wastes, i.e. scheduled wastes and general wastes was verified. The mill and estates have a proper Scheduled Waste Store for storing scheduled waste until time of disposal by DOE authorized waste disposal contractor (Triochem Sdn Bhd). Proper storage areas were identified for the storage of the recyclable wastes at the mill and estates. Latest disposal was carried out on 17 Sep 2015. Clinical waste was disposed of by authorized contractor (Medivest Sdn Bhd). Recycling bins of three different colour codes for specific recyclable wastes were available in the mill and estates and were used for solid waste segregation and recycling. Recycling of crop residues / biomass and mill wastes (POME, EFB, fibre, boiler ash) had been implemented. The composting plant recycles wastes such as the POME and EFB from the mill. The composting plant is located adjacent to the mill and Asia Green Resources Sdn Bhd had been appointed by Sime Darby Plantation, HQ to operate the composting plant. The compost is used for land application at Gunung Mas Estate. Appropriate secondary containment for the diesel skid tanks, chemical and scheduled waste storage areas was verified to be maintained. Stack emissions and boiler ashes were monitored and controlled at the POM. It was verified on-site that the records and related documentation has been satisfactorily maintained at the mill and also at the respective estates. Solid waste management and disposal by means landfill was available at the estates. The designated landfill area at both Kempas Klebang and Yong Peng estates, used for household waste were verified to be at least more than 500 m away from any streams/water sources/residential area - thus minimizing the risk of contamination of water sources. Criterion 5.4 INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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Efficiency of fossil fuel use and the use of renewable energy is optimised. Indicators Findings and Objective Evidence Compliance 5.4.1 A plan for improving The mill production output records and the two boilers operational Complied efficiency of the use of records were monitored monthly and included monitoring of the fossil fuels and to renewable energy usage. optimise renewable Monthly records of energy consumption of non-renewable and energy shall be in place and monitored. renewable fuel per metric tonne of palm product were available. Minor Compliance For the period Jul to Dec 2015, monthly diesel usage at the mill averaged about 0.23 litres/MT CPO produced. Monthly renewable
energy (fibre and shell) usage ranged from 0.40 to 0.42 MT/MT CPO and noted to be an average of 0.41 MT fibre & shell/MT CPO. At the Kempas Klebang estate, diesel consumption was also monitored on a monthly basis and noted to be an average of 1.50 litres/MT ton FFB from period Jul to Dec 2015. At Yong Peng estate, diesel consumption averaged 3.16 litres/MT ton FFB for the period Jul to Dec 2015. Criterion 5.5 Use of fire for preparing land or replanting is avoided, except in specific situations as identified in the ASEAN guidelines or other regional best practice. Indicators Findings and Objective Evidence Compliance 5.5.1 There shall be no Zero open burning policy in accordance with SOP Section B2 Complied land preparation by “Felling/Land Clearing & Land Preparation” dated 01/11/2008.The PMU burning, other than in management is strictly complying with the Malaysian environmental law specific situations as –EQA and Regulations 1974. identified in the ‘Guidelines for the Field inspections made showed no physical evidence of open burning. Implementation of the ASEAN Policy on Zero Burning’ 2003 . Major Compliance
5.5.2 Where fire has been The PMU has adhered to the ‘zero burning ‘policy for replanting at the Complied used for preparing land estates. for replanting, there shall be evidence of prior Also, there was no evidence of any burning of domestic waste at the approval of the controlled housing line sites and at the landfills of the estates during on site field burning as specified in assessment. Landfills are located far away from the villages and water ‘Guidelines for the sources. Implementation of the ASEAN Policy on Zero Burning’ 2003 . Minor Compliance
Criterion 5.6 Plans to reduce pollution and emissions, including greenhouse gases, are developed, implemented and monitored. Indicators Findings and Objective Evidence Compliance 5.6.1 An assessment of The PMU had carried out an Environmental Aspect and Impact Complied all polluting activities shall Assessment (EAIA) and identified the potential polluting activities at the be conducted, including POM and estates. gaseous emissions; particulate/soot emissions The PMU had reviewed the environmental impact assessment on and effluent (see Criterion potential pollution to water, gaseous emissions to air and contamination 4.4). on land in Aug 2015 for financial year 2015/2016. Major Compliance POME is sent to the composting plant adjacent to the mill and processed together with EFB and fertiliser to produce the compost for land application at Gunung Mas Estate. INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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Mill gas emissions as monitored online by DOE using the Continuous Emissions Monitoring System (CEMS) verified to be within permissible limits of DOE. Average opacity and duration exceeding permissible limits found to comply with DOE regulation. No violations and/or compounds have been received from DOE as to date. Monitoring of noise levels at the mill has been carried out. Noise levels at the boiler station and the sterilization unit were identified to be above 85 dB. Ear mufflers have been issued and seen to be worn by workers at those locations. As documented in the HIRAC table, PPE use and audiometric examination used as control measures to prevent hearing loss of mill workers. 5.6.2 Significant pollutants Identification of significant pollutants and greenhouse gas (GHG) Complied and greenhouse gas emissions has been done. e.g. POME, diesel / fuel and fertilizer. Their (GHG) emissions shall be usage have been recorded and documented at the PMU. GHG identified, and plans to emissions have been monitored and compiled for year FY 2015/2016 by reduce or minimise them implemented. the SDPSB Sustainability Department from HQ. The PMU intends to review the plans to further reduce or minimize their GHG emissions. Major Compliance
5.6.3 A monitoring system Monitoring and reporting of the significant pollutants to water, gaseous Complied shall be in place, with emissions to air and contamination on land are in place. regular reporting on progress for these Assessment and reporting of GHG emission calculation is available at significant pollutants and the plantation level using UNFCC GHG Protocol. The PMU had emissions from estate and submitted the GHG emission report to RSPO Secretariat for review by mill operations, using the Emission Reduction Working Group (ERWG). The endorsement of appropriate tools. the GHG calculation is still pending from RSPO. Thus the corrective Minor Compliance action taken on previous assessment Minor NC# OCL-01 verified to be effective.
Tools and systems used include the DOE online CEMS monitoring for air emissions, water quality at discharge points as per DOE regulations and Scheduled Waste disposal were adhering to DOE requirements. It was verified that the POME is treated using aerobic, anaerobic ponds. Water is being used for both domestic and mill operation. Water samples were taken every month at the final discharge point of the palm oil mill effluent pond. Water samples also taken at quarterly intervals at upstream and downstream of waterways. The water samples were tested and test reports analyzed to ensure compliance to DOE requirements. Results verified to have met the permissible regulatory limits for pH, BOD, COD, Total Solids, Suspended Solids, Oil & Grease, Ammoniacal Nitrogen and Total Nitrogen. Over the period Jul 2015 to Dec 2015, the BOD levels ranged from 160 to 675 ppm. The DOE requirement is < 500 ppm. The discharged water is 100% used for land application into Gunung Mas Estate. Records and regular reporting to DOE, quarterly reporting, were noted to be maintained and verified on-site.
Principle 6: Responsible consideration of employees and of individuals and communities affected by growers and millers Criteria 6.1 Aspects of plantation and mill management that have social impacts, including replanting, are identified in a participatory way, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continual improvement. INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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Indicators Findings and Objective Evidence Compliance 6.1.1 A social impact Social Impact Assessment (SIA) was conducted at the PMU in Jul 2014. Complied assessment (SIA) including records of SIA has been documented and reviewed by the respective estate(s) meetings shall be audited (Yong Peng Estate and Kempas Klebang Estate) including documented. Gunung Mas Palm Oil Mill. The review mechanism had appropriately involved stakeholders such as the Social & Environment Projects Unit, Major Compliance PSQM Department, workers, gender committee, workers union, head of villages, government department, school, contractors, suppliers and etc. Meetings of minutes held periodically had discussed, reviewed and addressed social issues such as repairs and upgrade for playground and houses, road conditions, health and welfare, gender issues, social and religious activities, sports and recreational needs. The social impact plans for the PMU and their implementation with time- lines and responsible person-in-charge has adequately demonstrated their continuous efforts to mitigate negative impacts and promoting the positive impacts. 6.1.2 There shall be Stakeholders’ meetings were conducted by the POM and estates with evidence that the assessment has been minutes maintained (Yong Peng estate and Kempas Klebang estate conducted stakeholders’ consultation on 12/12/2015 and 19/02/2016 done with the participation of affected parties. respectively). The POM and estates have conducted the stakeholders’ Major Compliance consultation. However, the number of stakeholders present were OBS # very few although a significant number had been invited. Action MNM-01 should be taken to have a greater participation from affected parties. An Observation was raised. 6.1.3 Plans for avoidance Management Plan was prepared and available at the estate(s) audited Complied or mitigation of negative impacts and promotion of (Yong Peng Estate and Kempas Klebang Estate) and the Palm Oil Mill. the positive ones, and The management of estate and mill has monitored the impacts identified, monitoring of impacts developed in consultation with the affected parties such as upgrading of identified, shall be playground at the estates housing complex and road maintenance. developed in consultation with the affected parties, Sighted records of appointed teams headed by estate managers documented and assisted by assistant managers. The roles and responsibilities of these timetabled, including appointed officials were defined. responsibilities for implementation.
Major Compliance 6.1.4 The plans shall be The PMU has reviewed the SIA plans at least once a year to follow-up Complied reviewed as a minimum once every two years and and updating of current practices and implementation. The review updated as necessary, in included the participation of affected parties such as workers, those cases where the neighbouring smallholders and villages. review has concluded that changes should be made to current practices. There shall be evidence that the review includes the participation of affected parties.
Minor Compliance 6.1.5 Particular attention There is no smallholder scheme at the PMU. Not shall be paid to the impacts of smallholder Applicable schemes (where the plantation includes such a scheme).
Minor Compliance INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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Criteria 6.2 There are open and transparent methods for communication and consultation between growers and/or millers, local communities and other affected or interested parties. Indicators Findings and Objective Evidence Compliance 6.2.1 Consultation and Documented policies and procedures are available for internal and Complied communication procedures shall be external communication and consultation. documented. Estate managers are the nominated persons responsible for communication with the stakeholders. The organization has a list of Major Compliance stakeholders including local authorities, government departments, suppliers, contractors and their neighbours. Interviews with representatives of Gender Committee, workers’ association representatives, neighbouring village representative, internal workers revealed open and transparent communication and consultation. These interviews confirmed the effectiveness of PMU consultation and communication processes with the internal and external stakeholders. 6.2.2 A management Social officers for mill and each estates were appointed by the Complied official responsible for these issues shall be respective mill / estate managers, who had held meetings for the nominated. communication and consultation with the local communities and other affected or interested parties on any social issues arising. Minor Compliance Appointment records sighted show evidence the existence of a management official for these issues. Interviews with mill and estate managers verified the understanding of their roles and responsibilities (i.e. Mill Management was appointed En. Khairul Nahar B. Omar as the communication officer as per appointment letter dated 01 Jul 2014 and approved by the Mill Manager (Amran Sa’ri). Yong Peng Estate – Mr. Nur Hakimm Bin Sak’ari was appointed as communication officer with regards of social issues as per appointment letter dated 07 Jul 2015 approved by Plantation Manager (Syed Akhmal B. Syed Isa). Kempas Klebang – Mr. Khairul Anam B. Haji Jumri was appointed as the communication officer for social issues at Kempas Klebang estate as per appointment letter dated 01 Jul 2015 for year 2015/2016 and approved by estate Manager. 6.2.3 A list of Lists of site specific stakeholders are sighted for the PMU and noted to stakeholders, records of all communication, have included relevant affected parties. The stakeholders’ communications file has been maintained and communication records including confirmation of receipt and that efforts are and actions taken were available. made to ensure Noted that there are open and transparent methods for communication understanding by affected and consultation which has taken into consideration the local conditions parties, and records of including foreign workers and job opportunities for local people. Verified actions taken in response that consultations with various stakeholders had been held and recorded to input from stakeholders, shall be in the minutes of meeting that include actions taken in response to input maintained. from stakeholders. Stakeholders list should be reviewed and updated regularly to Minor Compliance include any new suppliers and contractors. OBS # Also, it was noted that stakeholders (e.g. villagers) have made MNM-02 certain requests and actions have been taken by POM and estates. However, there was a lack of proper documentation and records on such matters. An observation was raised. Criteria 6.3 There is a mutually agreed and documented system for dealing with complaints and grievances, which is implemented and accepted by all affected parties. Indicators Findings and Objective Evidence Compliance 6.3.1 The system, open to Flow chart and Procedure on Handling Disputes including any land Complied all affected parties, shall INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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resolve disputes in an related matters as noted in Appendix 3 dated 01/11/2008 & Appendix 5 effective, timely and dated 01/11/2008. appropriate manner, ensuring anonymity of No case of any dispute was raised in the Stakeholder Complaints and complainants and Grievance record book. whistleblowers, where This was confirmed through interviews conducted with various staff, requested. workers, neighbouring smallholders, school teachers, contractors, suppliers, local community representatives during the current Major Compliance assessment. The PMU has an established and documented system for dealing with complaints and grievances and it was well implemented. Whistle blower briefing was conducted on 30/01/2016 and attended by 21 personnel. 6.3.2 Documentation of Mechanism for resolution of dispute has been appropriately established Complied both the process by which a dispute was resolved and implemented. Records of meeting and any resolutions or outcomes and the outcome shall be are maintained through minutes or in the Complaints Log. available.
Major Compliance Criteria 6.4 Any negotiations concerning compensation for loss of legal, customary or user rights are dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions. Indicators Findings and Objective Evidence Compliance 6.4.1 A procedure for The documented procedure for identifying legal and customary rights Complied identifying legal, customary or user rights, and procedure for identifying people entitled to compensation have been and a procedure for maintained. Current latest version in SPMS Manual 01/11/2008. identifying people entitled Social Policy established by Sime Darby Plantation is available and to compensation, shall be maintained at website link: www.simedarbyplantation.com/sustainability in place. There were no borders which were adjacent to any villages or native Major Compliance land in the PMU. Therefore, no cases requiring any negotiation or compensation pertaining to these criteria. There have been no changes in this status as at the period of verification on site. 6.4.2 A procedure for There is a procedure for calculating and distributing compensation. To Not calculating and distributing fair date, there has been no dispute by any parties relating to legal, Applicable compensation (monetary customary or user rights at the PMU. or otherwise) shall be There have been no claims or disputes relating to legal and customary established and rights. As such, the application of the procedure for calculating and implemented, monitored distributing compensation has not been invoked . and evaluated in a participatory way, and corrective actions taken as a result of this evaluation. This procedure shall take into account: gender differences in the power to claim rights, ownership and access to land; differences of transmigrants and long- established communities; and differences in ethnic groups’ proof of legal versus communal ownership of land. INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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Minor Compliance 6.4.3 The process and The process is made available via website link: Not outcome of any negotiated agreements www.simedarbyplantation.com/sustainability Applicable and compensation claims So far, there has been no dispute by any parties relating to legal, shall be documented, with customary or user rights at the PMU. Therefore the process and evidence of the outcome of compensation could not be observed. participation of affected parties, and made publicly available.
Major Compliance Criteria 6.5 Pay and conditions for employees and for contract workers always meet at least legal or industry minimum standards and are sufficient to provide decent living wages. Indicators Findings and Objective Evidence Compliance 6.5.1 Documentation of Labour policy is documented and publicly available. Labour policy Complied pay and conditions shall be available. addresses foreign workers who mostly come from Indonesia, Bangladesh, India and Nepal. Employment conditions meet legal Major Compliance requirement. Employment agreements, stating all statutory fringe benefits and eligible incentives are available. Stated conditions in the employment agreement includes working hours, overtime, leave and medical benefits, maternity leave for women, insurance coverage, deductions, resignation notice period, company rules, etc., which are in compliance with applicable legal requirements. The payment slip was easy to understand. Foreign workers are legally employed directly by respective PMU and work permits were available and verified to be satisfactory. Pay and conditions are documented in letters of employment. MAPA Circular No. 9/2014 dated 21 Apr 2014 for period from 01 Jan 2014 for a continuous period of three (3) years has been used as basis for calculation for pay and benefits. Minimum wages for Peninsular Malaysia as stipulated by Minimum Wage Order 2012 were adhered to by the mill and estate management. Offer letter, employment agreements with applicable terms and conditions and accompanying appendices conditions are documented in Bahasa Malaysia and English languages. The PMU also provides free housing and piped water supply, free electricity, medical benefits and welfare amenities that in overall constitutes a decent living for the employees. The documented pay and conditions are verified to be satisfactorily implemented. Pay and conditions documented in the employment contract and found to be in accordance with the Employment Act 1955. 6.5.2 Labour laws, union Pay and conditions are provided as per the enforced current agreements agreements or direct contracts of employment negotiated by NUPW and AMESU who represent local as well as foreign workers. detailing payments and conditions of employment Documented employment contract verified for foreign workers had (e.g. working hours, covered all issue such as working hours, deductions, overtime, sickness, deductions, overtime, holiday entitlement, maternity leave, and reasons for dismissal, period of sickness, holiday notice made available in Bahasa Malaysia and English. entitlement, maternity leave, reasons for Voluntary salary deduction was verified such as Letter from NUPW dated dismissal, period of 17/02/2016, Ref Nr: NUPW/JSB/A-22/2016 for participation in the GELA notice, etc.) shall be Scheme which as per the MAPA/NUPW Field & Other General available in the languages Employees and Fringe Benefits Agreement 2015. understood by the workers or explained INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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carefully to them by a At Yong Peng Estate and Kempas Klebang Estate, the working management official. contracts in Bahasa Malaysia version have the signature of the foreign worker concerned. Major Compliance There are also working contracts in Bangladesh, Hindi and Major NC # Nepalese languages. However, there was no evidence to support MNM-01 that such contracts were fully understood as these contracts were not signed by the respective foreign workers. A Major NC was raised.
6.5.3 Growers and millers The estate management was noted to have complied with Workers’ Complied shall provide adequate housing, water supplies, Minimum Standard of Housing and Amenities Act 1990 (Act 446). medical, educational and Workers minimum standards for housing and amenities adhered for all welfare amenities to estate workers including migrant workers from Indonesia, Myanmar, national standards or Nepal, Bangladesh and India. above, in accordance with Workers’ Minimum The POM and estates line site/housing complex inspections were Standard of Housing and adequately done by the Health Assistant and recorded in the inspection Amenities Act 1990 (Act logbooks. 446) or above, where no Site visits to workers’ homes and interviews with their dependents such public facilities are revealed their general satisfaction with their housing conditions and available or accessible amenities. (not applicable to smallholders). Thus the corrective action taken on previous assessment Minor NC# MNM-01 verified to be effective. Minor Compliance Housing, electricity and water supply Workers are given a small patch of land to grow vegetables/fruit trees around their houses in order to reduce the cost of living. Most of the workers staying in the estate are provided with 24 hours electricity supply. Clean water supply comes from treated piped water supplied by the company owned by the state government. Schools The foreign workers’ does not have any children staying at the PMU. Local workers children were sent to the government school nearby the estates. Sundry shops The availability of sundry shops within the estates which helped the staff and workers (local & foreign workers) get their sundries nearby. From interviews with the workers and the shop owners in the PMU, it was found that most household sundries, including frozen foodstuffs, vegetables, etc. were available on sale. Crèche ( Rumah Asuhan Kanak-kanak) There is a crèche in every estate that provides free baby-sitting from 7.00am to 2.00pm for the local workers’ children. Free infant formula milk is also provided to those children who are not weaned yet. Medical clinics There is a clinic in every estate which is manned by an Estate Health Assistant (EHA). Visiting Medical Officer comes once a month to monitor the services provided and to review the referred cases. Basic medical treatment of minor ailment and first aids are provided. Sharp bins are available in all clinics and content of the bins are disposed through proper channel, i.e. collected by licensed collector. 6.5.4 Growers and millers Food for the workers is available for sale at sundry shops in each of the Complied shall make demonstrable efforts to monitor and PMU estates was verified to be adequate and affordable. where able, improve workers’ access to adequate, sufficient and affordable food. INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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Minor Compliance
Criteria 6.6 The employer respects the rights of all personnel to form and join trade unions of their choice and to bargain collectively. Where the right to freedom of association and collective bargaining are restricted under law, the employer facilitates parallel means of independent and free association and bargaining for all such personnel. Indicators Findings and Objective Evidence Compliance 6.6.1 A published File on the minutes of meetings with NUPW / worker union Complied statement in local languages recognising representatives have been maintained. Meetings held FY 2015/2016 at freedom of association the PMU has been verified. shall be available. The published statement which recognizes the employee’s freedom of association was found to be available and widely displayed in all notice Major Compliance boards of the PMU as per Section 8, Employment Act 1955 and Section 5 (1) Akta Perhubungan Perusahaan 1967. National Union of Plantation Workers (NUPW) is a platform through which the members negotiate collectively with the management of PMU. 6.6.2 Minutes of meetings Management policy on Sime Darby Plantation Group recognition on Complied with main trade unions or workers representatives freedom of association has been published and maintained since April shall be documented. 2011. The policy is available in English and also in Bahasa Malaysia for ease of understanding by the estate workers / staff and displayed Minor Compliance prominently in notice boards. Records of meetings were documented, kept and available. Criteria 6.7 Children are not employed or exploited. Indicators Findings and Objective Evidence Compliance 6.7.1 There shall be Documented policy on Sime Darby Corporate Child Protection Policy Complied documentary evidence that minimum age dated Jun 2013 is available with minimum age of 18 for employment was requirements are met. addressed. This policy is fully well understood and fully adhered to by all mill and estate managers at the PMU. Examination of employment Major Compliance records and interview with workers confirmed that this requirement is in compliance. This policy is displayed at strategic public places. The birth date in the Identification card and birth certificate of a new employee is used as the verification for age. The implementation was verified through checks on the list of workers. Interviews with workers in the estates and at the Mill confirmed implementation of the stated policy. Criteria 6.8 Any form of discrimination based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation, or age, is prohibited. Indicators Findings and Objective Evidence Compliance 6.8.1 A publicly available Social Policy stipulating equal opportunities policy has been documented Complied equal opportunities policy including identification of and publicly available via website link: relevant/affected groups www.simedarbyplantation.com/sustainability as well as prominently in the local environment displayed in notice boards at various office areas (inside and outside shall be documented. office). The policy stressed on non-discrimination based on race, caste, Major Compliance nationality, religion, gender, sexual orientation, disability/handicap, and union/political affiliations. However, positive discrimination for the benefit of certain society groups may be allowed after consultation. 6.8.2 Evidence shall be Non-discrimination policy has been issued dated Apr 2011. Complied provided that employees and groups including local Wage records inspected and rates confirmed as being non- communities, women, and discriminatory for male, female and both local as well as foreign workers. migrant workers have not Compliance to relevant regulatory requirements such as Employment INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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been discriminated Act 1955, Immigration Act 1959/63 and Workmen’s Compensation Act against. 1952 was observed when recruiting workers from Indonesia, Nepal, Bangladesh and India. The employment of foreign workers was Major Compliance implemented without affecting the opportunities for local communities. Local workers are covered under SOCSO scheme and the foreign workers are covered under Foreign Workers Compensation Scheme (FWCS). (At Kempas Klebang estate, copies of passport and work permit are available and monitored. FWCS is available for foreign workers (i.e. Policy No: FW148579, from RHB Insurance Berhad for the period from 02/07/2015 – 01/07/2016 for 39 foreign workers, Policy No: FW158248 valid from 05/08/2015-04/08/2016 for 52 foreign workers are available). Interviews with local workers’ dependents revealed their satisfaction with the PMU for job opportunities and they enjoy all common welfare amenities like free housing, water and electricity supplies, medical care, and transportation of school children. They are aware of the complaint (“aduan”) mechanism by which they can make any complain or request to the management. Interview with a women workers revealed that she is a gender representative and there has been no known cases of any sexual harassment or violence against women at the field or at the housing areas. 6.8.3 It shall be Depending on the nature of work positions, the PMU management takes Complied demonstrated that recruitment selection, into considerations the needs for related skills in recruitment selection, hiring and promotion hiring and promotion exercises. where relevant are based New employment verified such as Mohd Rani B. Abd Rahim as on skills, capabilities, Watchman (Security Guard) and salary was paid as per agreement qualities, and medical between MAPA and AMESU 2010 (Appointment letter dated fitness necessary for the 06/05/2015) was carried out in a non-discriminative manner. jobs available. New job vacancy advertised such as dated 29/01/2016 as the Minor Compliance Weighbridge Operator with minimum education required is SPM, Salary paid as per MAPA/AMESU 2014, closing date – 05/02/2016. Other vacancies advertised such as Crop Checker was verified. The necessary qualifications and conditions were clearly stated in the job advertisement. Terms and conditions of work were stated in the offer letter as well. Promotions to higher position at the estates and POM were based on evaluations which considered the skill, capabilities, qualities and medical fitness of the employees was also verified during assessment. Criteria 6.9 There is no harassment or abuse in the work place, and reproductive rights are protected. Indicators Findings and Objective Evidence Compliance 6.9.1 A policy to prevent Gender Policy dated April 2011 has been established and implemented. Complied sexual and all other forms of harassment and Gender Committees have been established at mill and estates. Periodic violence shall be meetings noted held during the FY2015/2016.The meeting agenda implemented and covered prevention of sexual harassment , violence against women, communicated to all protection of women reproductive rights, recreational and social levels of the workforce. activities, reflected communication on harassment issue, general understanding of sexual harassment in the workplace and the Major Compliance mechanism to report an alleged sexual harassment or violence. Manual on Implementation of the Gender Policy is available. Activities conducted and participated by Gender Committee such as Fire Prevention and Safety Training on 9-11 Jun 2015, Hari Raya Celebration on 07/08/2015, Briefing/Awareness on the sexual harassment conducted on 19/01/2016 and domestic violence briefing was conducted on 12/02/2016. INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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6.9.2 A policy to protect Grievance process flowchart dated Apr 2011 with a specific mechanism Complied the reproductive rights of all, especially of women, to deal with women concerns/grievances has been established. shall be implemented and Committee meeting minutes file and record books addressing any communicated to all grievances including women concerns is maintained. Noted that there levels of the workforce. has been no incidence recorded/reported on sexual harassment and violence against women. Major Compliance Local female staff is fully aware that they are entitled for two months paid maternity leave. There was no pregnant or breastfeeding women working as agrochemical handlers were verified during assessment based on the records and interviews of field workers and gender committee members. 6.9.3 A specific grievance Complaint and grievance procedures “Negotiation Procedure” are Complied mechanism which respects anonymity and available to manage grievances and complaints from internal and protects complainants external stakeholders. where requested shall be Onsite audits verified that the complaint and grievance procedure and established, implemented, whistle blowing procedure are displayed outside staff offices and at the and communicated to all public areas. levels of the workforce. Management confirmed that there has been no report of sexual Minor Compliance harassment in the PMU so far. Criteria 6.10 Growers and millers deal fairly and transparently with smallholders and other local businesses. Indicators Findings and Objective Evidence Compliance 6.10.1 Current and past Pricing mechanism for FFB following MPOB guidelines is documented Complied prices paid for Fresh Fruit Bunches (FFB) shall be and available at mill office. Current FFB price was displayed outside of publicly available. mill office. A file with the rates for transport contractors and other services is maintained. Minor Compliance 6.10.2 Evidence shall be FFB prices were made available via website link: Complied available that growers/millers have www.simedarbyplantation.com/sustainability explained FFB pricing, The POM has treated out-growers and other local business fairly. and pricing mechanisms Pricing mechanism for FFB is fair and transparent and FFB grading as for FFB and per MPOB approved / licensed graders and based MPOB specification. inputs/services shall be Current and past prices paid for FFB were publicly available and verified documented (where these through interviews. Mechanisms are available to the public upon are under the control of the mill or plantation). request. Major Compliance 6.10.3 Evidence shall be Evidenced in agreements made with MAPA, NUPW & AMESU. Complied available that all parties understand the Allowances are standardized such as for transport and other contractual agreements subsistence. they enter into, and that Stakeholder interviews conducted during this assessment with suppliers, contracts are fair, legal contractors, and relevant parties confirmed that understand the and transparent. contractual agreements (such as terms and payment) they enter into with the PMU. They also consider the business transactions as fair and Minor Compliance transparent. Replanting Contractor (Gunalabur (M) Sdn. Bhd.) Letter of Acceptance dated 02/09/2015 with contract period valid from 01/07/2015-30/06/2018. CVM Transport Sdn. Bhd for Transportation of FFB in Peninsular Malaysia for 2 years contract (01/06/2014 – 31/05/2017). Pandian A/L Marimuthu for Transportation of EFB at Yong Peng Estate for 1 year contract (01/05/2015 – 30/04/2016), Subramaniam A/L Muthusamy for Back Hoe Works (Mounding of Ganoderma Palms, Construction of Roadside, JCB, Bulldozer, Trenching and Pruning works for 1 year contract (01/05/2015 – 30/04/2016) was verified. 6.10.4 Agreed payments Through interviews made, there is no evidence to suggest of any unfair Complied shall be made in a timely INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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manner. business practices with the local businesses.
Minor Compliance Payroll for the POM and estates were available and verified. Interviews with employees and contractors confirmed that payments were received in a timely manner. Criteria 6.11 Growers and millers contribute to local sustainable development where appropriate. Indicators Findings and Objective Evidence Compliance 6.11.1 Contributions to File on social contributions and activities were maintained and noted Complied local development that are based on the results contributions issued for occasions such as festivities of local community, of consultation with local religious, social, educational and burial contributions for estate family communities shall be members. demonstrated. which include:
Minor Compliance - Road maintenance within the PMU areas - Organizing sports and recreational activities - Corporate Social Responsibility (CSR) activities - Up-keeping of religious sites such as temples and mosques. - Donation to the religious activities and programs 6.11.2 Where there are It was verified that there were no smallholder scheme programs at the Not scheme smallholders, PMU estates. there shall be evidence Applicable that efforts and/or resources have been allocated to improve smallholder productivity. Minor Compliance Criteria 6.12 No forms of forced or trafficked labour are used. Indicators Findings and Objective Evidence Compliance 6.12.1 There shall be Audit of employment records such as work permits in an estate office Complied evidence that no forms of forced or trafficked labour confirmed that all foreign workers were recruited through legal means are used. and according to the regulatory requirements. Interviews with foreign workers and local workers dependents in the Major Compliance housing are confirmed that there were no forced or trafficked labours. 6.12.2 Where applicable, There was no evidence of contract substitution and this was confirmed Complied it shall be demonstrated that no contract from interviews with workers and relevant stakeholders. substitution has occurred.
Minor Compliance 6.12.3 Where temporary The “Social Policy” dated Apr 2011 are established and the Complied or foreign workers are employed, a special implementations are verified to be satisfactory. Review on employment labour policy and contracts of foreign workers also confirmed that the policies, including procedures shall be minimum wages have also been duly implemented. established and implemented.
Major Compliance Criteria 6.13 Growers and millers respect human rights. Indicators Findings and Objective Evidence Compliance 6.13.1 A policy to respect Charter dated Apr 2013 was established to respect human rights has Complied human rights shall be documented and been documented and communicated to all levels of the workforce and communicated to all operations. levels of the workforce and operations (see INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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Criteria 1.2 and 2.1).
Major Compliance 6.13.2 As long as children See 6.5.3 Not of plantation workers of Applicable Sabah and Sarawak are not secured a right to go to government school, the plantation companies should engage in a process to secure the children of the plantation workers access to education as a moral obligation.
Minor Compliance
Principle 7: Responsible development of new plantings SOU 21 Gunung Mas grouping has a documented procedure for this development but has not carried any new plantings after Nov 2005. Therefore, the requirements of Principle 7 are not applicable during this assessment.
Principle 8: Commitment to continuous improvement in key areas of activity Criterion 8.1 Growers and millers regularly monitor and review their activities, and develop and implement action plans that allow demonstrable continual improvement in key operations. Indicators Findings and Objective Evidence Compliance 8.1.1 The action plan for The PMU had planned and progressively implemented the following Complied continual improvement continual improvement activities in the palm oil mill and estates: shall be implemented, based on a consideration • Increase in the planted area of beneficial plants especially to attract of the main social and bagworm predators so as to reduce the use of pesticides. environmental impacts • Additional barn owl boxes to meet the target of 1:10 ha coverage and and opportunities of the also ensure occupancy rate of 60%. grower/mill, and shall include a range of • Reduce waste by recycling hydraulic oil in purifier. Indicators covered by • these Principles and Reduce oil loss in press cake fiber from 0.60 to 0.55. Criteria. • Reduce oil loss in empty bunch press from 0.40 to 0.30.
• Reduce oil loss in final effluent from 0.60 to 0.50. As a minimum, these shall include, but are not • Replace leaking or damaged piping system in housing quarters for necessarily be limited to: workers. • Collection of rain water at line site, workshop and office for cleaning • Reduction in use of purpose. pesticides (Criterion 4.6); • Reduce water usage to conserve water supply during drought by • Environmental impacts (Criteria 4.3, 5.1 and 5.2); monthly monitoring of water usage. • Waste reduction • Continuous contribution to the local communities, school, government (Criterion 5.3); agencies and etc. • Pollution and • Continuous support on the workers social activities including sports greenhouse gas (GHG) activities, religious activities, “gotong royong” and maintenance of emissions (Criteria 5.6 facilities. and 7.8); INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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• Social impacts (Criterion • 7 units of local workers house upgraded at Yong Peng estate (2 units 6.1); houses Semi-D type with 2 bedrooms each into 1 single unit house • Encourage optimising with 4 bedrooms). the yield of the supply • base. Upgraded playgrounds as per stakeholders consultation feedbacks Major Compliance Evidence of results was available for the above continuous improvement action plans. Thus the corrective action taken on previous assessment Major NC# OCL-01 verified to be effective.
3.1.1 Supply Chain Certification Standards Findings - on CPO Mill
The Supply Chain module applied at Gunung Mas Grouping POM during this assessment is Module D – CPO Mills: Identity Preserved (IP).
Details of findings are as follows:
D.1 Definition Indicators Findings and Objective Evidence Compliance D.1.1 Complied A mill is deemed to be Identity The POM only processed FFB from its own supply base (see Preserved (IP) if the FFB used by the Section 1.3 ). It was verified that there was no sources of FFB mill are sourced from its own supply from any outgrowers or independent suppliers / smallholders. base certified to the RSPO Principles The CPO Mill is therefore deemed to be Identity Preserved and Criteria (RSPO P&C). (IP). Certification for CPO mills is necessary to verify the volumes and sources of certified FFB entering the mill, the implementation of any processing controls (for example, if physical separation is used), and volume sales of RSPO certified products. A mill may be taking delivery of FFB from uncertified growers, in addition to those from its own certified land base. If a mill processes certified and uncertified FFB without physically separating the material then only Module E is applicable.
D.2 Explanation Indicators Findings and Objective Evidence Compliance D.2.1 Complied The estimated tonnage of CPO and The estimated tonnage of CPO and PK products that could PK products that could potentially be potentially be produced by the POM is recorded in this produced by the certified mill must be Assessment Report. This figure represents the total volume of recorded by the certification body certified palm oil product (CPO and PK) that the certified mill is (CB) in the public summary of the allowed to deliver in a year. The actual tonnage produced has P&C certification report. been recorded in each annual surveillance report (see Section This figure represents the total 1.8.2 Table 6 and Section 1.8.3 Table 7 ). volume of certified palm oil product (CPO and PK) that the certified mill is allowed to deliver in a year. The actual tonnage produced shall then be recorded in each subsequent annual surveillance report. D.2.2 The POM meet all registration and reporting requirements for Complied INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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The mill must also meet all the appropriate supply chain through the RSPO Supply Chain registration and reporting managing organization (RSPO IT platform or book and claim). requirements for the appropriate supply chain through the RSPO supply chain managing organization (RSPO IT platform or book and claim).
D.3 Documented procedures D.3.1 Documented procedure for IP Module is: Doc. No. Complied The site shall have written SD/SDP/PSQM/001 Rev 0 (01/03/15) Standard Operation procedures and/or work instructions Procedure for Sustainable Supply Chain and Traceability. to ensure the implementation of all The procedure covered the implementation of all elements of the elements specified in these requirements. This shall include at IP Module. minimum the following: a) Complete and up to date The documented procedure and its implementation confirmed Complied procedures covering the to have complied with all the specified requirements of Identity implementation of all the elements in Preserved (IP) Module D that include controlling the FFB these requirements receipt, processing, sales, CPO and PK dispatch, and records keeping. b) The role of the person having Palm Oil Mill Manager, Mr Amran bin Sa’ri was interviewed. Complied overall responsibility for and authority His staff, Ahmad Akhmal (Assistant Manager) has been over the implementation of these appointed as the PIC for the overall responsibility and authority requirements and compliance with all for implementation and compliance with the documented applicable requirements. This person procedure. He and other relevant staff under his charge shall be able to demonstrate demonstrated competence, skill and knowledge of the RSPO awareness of the site’s procedures Supply Chain Certification Standard Module D requirements for the implementation of this standard. and its implementation. Interviews of the relevant staff confirmed their knowledge of the RSPO Supply Chain Certification requirements for the respective areas of operations. The Palm Oil Mill Organization Chart and job responsibilities of employees (Mill Manager, Assistant Manager, Engineers, Assistant Engineers, Technicians, Security Officer, Weighbridge Operator, Laboratory Chemist and clerks) have been suitably defined in the Sime Darby Quality Management System Manual. D.3.2 The POM only received and processed FFB mainly from the Complied The facility shall have documented PMU Gunung Mas estates and some FFB (of IP Module) from procedures for receiving and other certified SDPSB PMUs estates. processing certified and non-certified The PMU did not receive any non-certified FFB from other FFBs. sources or suppliers. All supplies of FFB were subjected to verification of FFB Consignment Note by weighbridge personnel and quality checks (Crop Quality Report - grading chit) by the mill personnel to determine the origin, quantity and quality of the FFB. The Weighbridge Ticket for FFB indicated the date, vehicle number, estate & field number, harvesting date, security seal number and weight. Monthly FFB and CPO/PK Report and YTD Report were verified to have complied with requirements of the IP Module whereby the Palm Oil Mill received and processed FFB from its own estates and other certified SDPSB PMUs estates. D.4 Purchasing and goods in Indicators Findings and Objective Evidence Compliance D.4.1 The POM had maintained record of tonnages and supply Complied The facility shall verify and document source of FFB from the respective estates at the weighbridge station, in the Consignment Note and Weighbridge Ticket. INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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the tonnages and sources of certified Noted that there are some FFB from other certified SDPSB and non-certified FFBs received. PMUs. These are supplied under special circumstances only, e.g. when the other certified mills undergo maintenance. There were no non-certified FFB received or processed by the POM. D.4.2 The documented Supply Chain SOP has specified that the Complied The facility shall inform the CB responsible POM personnel shall check production quantity immediately if there is a projected against the certified amount and notify RSPO, the CB and overproduction of certified tonnage. PSQM Department of any projected overproduction of certified tonnage. So far, there is no projected overproduction. D.5 Record keeping Indicators Findings and Objective Evidence Compliance D.5.1 The SOP stated a retention period of at 10 years for all Complied The site shall record and balance all records and reports. Pertinent records are properly filed, receipts of RSPO certified FFB and accessible and retrievable. The main records retained are deliveries of RSPO certified CPO and FFB Consignment Note, Weighbridge Tickets, Collection Note, PK on a three-monthly basis. Despatch of CPO, MPOB L3 form. Inspection of records at the POM confirmed these were accurate and complete.
The POM had maintained a monthly summary of all receipts of FFB, production tonnage and dispatch of CPO and PK. This inventory is balanced every 3 months. D.6 Processing Indicators Findings and Objective Evidence Compliance D.6.1 Confirmed from records that the POM only received and Complied The site shall assure and verify processed certified FFB from its own estates and estates in through documented procedures and other certified SDPSB PMUs. The processing facility has record keeping that the RSPO established and implemented a clear procedure and certified oil palm product is kept mechanism for the IP module. segregated from non-certified Review and on-site verification confirmed that the mechanism material including during transport was implemented and in compliance with the module and storage. requirements at the mill, including transport and storage. D.6.2 Documents and records provided documented evidence that Complied The objective is for 100 % the FFB receipt and processed, and CPO and PK produced segregated material to be reached. are traceable to 100% certified material. The PK is delivered to the Sime Darby palm kernel crushing plant at Carey Island or sold as non-certified PK. The POM does not produce PKO. The product type and supply chain module indicated as CSPO/IP and CSPK/IP on relevant documents.
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 Gunung Mas POM has been able to comply with the requirements of the RSPO SCCS under the ‘IP’ module and is thus eligible for ‘IP’ trading for its palm products for year FY 2015/2016.
3.1.3 Monitoring of CSPO and CSPK traded:
The POM relied on internal communication via email of the trading done by the HQ, Kuala Lumpur on the CSPO and CSPK. The POM received instruction from HQ to indicate the trade as CSPO on the weighbridge ticket according to each contract. So far, there is no CSPO sold under RSPO GreenPalm and ISCC. Also, there is no trade as CSPK. The volumes of CSPO traded as verified during assessment are as follows:
CSPO - Actual CSPK - Actual CSPO - Actual CSPK - Actual Jan – Dec 2014 Jan – Dec 2014 Jan – Dec 2015 Jan – Dec 2015 INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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(MT) (MT) (MT) (MT) RSPO 41,446 0 54,918 0
Book & Claim 0 0 0 0 (Green Palm) ISCC 0 0 0 0
Total Traded 41,446 0 54,918 0 Actual 45,867 12,482 55,773 15,094 Produced
Notes: • Based on records maintained at the POM, it was verified that the total tonnage of CSPO traded has not exceeded the annual certified quantity. • The PK delivered to the Sime Darby palm kernel crushing plant at Carey Island or sold as non-certified PK. The POM does not produce PKO. There is no outsourcing of the PK crush to an independent palm kernel crusher.
3.2 Status of Identified Noncompliance and Corrective Actions, Observations and Positive Elements. The status of the Noncompliances (NCR) and Observations (OBS) identified against the MYNI Compliance Indicators is as per the details below:
Assessment Type Yea r Noncompliance Observations (OBS) Follow up status (NCR) Re-Certification 2015 4 (2 Major, 2 Minor) 0 Actions taken on the NCRs and OBS verified to be effective during ASA-01 Annual Surveillance-01 2016 1 (1 Major, 0 Minor) 4 Next assessment (Annual Surveillance-02)
3.2.1 Year 2015: Re-certification Assessment (4 NCRs)
NCR MYNI Details of NCR Indicator Major 4.4.2 Date issued: 23/04/2015 NC# NR-01 Nonconformance: At the Gunung Mas Estate, there is no clear indication of the buffer zone boundary along Sungai Bekok that passes through the estate. Appropriate signages have to be placed at strategic points along the boundary.
Root Cause and Corrective Action: Root Cause: Faded marking on the palms and signage placed at unsuitable location. Corrective Action: To re-demarcate the palm at buffer zone and proper signage to be placed at strategic location.
Verification for Closure: Off-site verification carried out. Verified that the photos submitted indicated clear demarcation of the buffer zone and signages erected. NC status verified by auditor: Closed by OCL Date closed: 07/05/2015 Verification (for effectiveness): Verified during ASA-01 that the corrective action taken was implemented effectively. INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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NC status verified by auditor: OCL Date verified: 22/02/2016
NCR MYNI Details of NCR Indicator Major 8.1.1 Date issued: 23/04/2015 NC# OCL-01 Nonconformance: There are areas of continual improvement carried out by the POM and estates. However only the POM have records to indicate the results of achievement of these continual improvements. The Bukit Paloh Estate and Gunung Mas Estate are required to organize and document these continual improvements with clear indication of the results. Root Cause and Corrective Action: Root Cause: Inconsistency of Continual Improvement process carried out by Operating Units. Corrective Action: To standardize the template for Continual Improvement recording and note the improvement made to daily activities.
Verification for Closure: Off-site verification carried out. Verified that the documents and records submitted by the estates clearly indicate the continual improvement areas and its outcomes.
NC status verified by auditor: Closed by OCL Date closed: 07/05/2015 Verification (for effectiveness): Verified during ASA-01 that the corrective action taken was implemented effectively.
NC status verified by auditor: OCL Date verified: 22/02/2016
NCR MYNI Details of NCR Indicator Minor 5.6.3 Date issued: 23/04/2015 NC# OCL-01 Nonconformance: The PMU has not complied with the requirement for submission of their GHG emission report (using PalmGHG or an equivalent) to RSPO Secretariat for review by the ERWG during the implementation period. If using tools other than PalmGHG, the PMU is required to submit these tools and their calculations for endorsement by RSPO well before their assessment. Root Cause and Corrective Action: Root Cause: Lack of internal communication. Corrective Action: To submit the GHG emission report (using PalmGHG or an equivalent) to RSPO Secretariat for review. Verification for Closure: This Minor NC was raised after completion of the external peer review of the re-certification assessment and upon receiving the email from RSPO Secretariat on 08 May 2015 concerning the RSPO Announcement for CB on Criterion 5.6 Therefore, verification for closure at next assessment (ASA-01). NC status verified by auditor: OCL Date closed: 22/02/2016 Verification (for effectiveness): Verified during ASA-01 that the corrective action taken was implemented effectively. INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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NC status verified by auditor: OCL Date verified: 22/02/2016
NCR MYNI Details of NCR Indicator Minor 6.5.3 Date issued: 23/04/2015 NC# MNM-01 Nonconformance: The main drains behind the sundries shop at Bukit Paloh Estate and Gunung Mas Estate was found to be littered with rubbish and overgrown grass which were not properly managed. Line-site inspection record was not adequately maintained since Dec 2014 as required by the PMU procedure or the regulatory requirements as follow: “Workers’ Minimum Standards of Housing and Amenities Act 1990” requires weekly inspection of workers’ housing. It shall be the duty of the employer of a place of employment where workers and their dependents are provided with housing accommodation to ensure that : (a) the area surrounding the workers’ housing is kept clear of undergrowth and maintained in a clean and sanitary condition; (b) the perimeter drains around each dwelling or block of dwellings including all outlet drains are kept in a good state of repair and clear of refuse or undergrowth to permit free flow of water. Root Cause and Corrective Action: Root Cause: Lack of monitoring. Corrective Action: Housekeeping (grass cut) and dispose rubbish appropriately. Linesite inspection schedule/report to be carried out as per requirement. Verification for Closure: Off-site verification carried out. Verified that the photos submitted show the rubbish and overgrown grass to be cleared and line-site inspection records maintained up to date. NC status verified by auditor: Closed by OCL Date closed: 07/05/2015 Verification (for effectiveness): Verified during ASA-01 that the corrective action taken was implemented effectively. NC status verified by auditor: OCL Date verified: 22/02/2016
3.2.2 Year 2016 ASA-01: 1 NCR (1 Major)
NCR MYNI Details of NCR Indicator Major 6.5.2 Date issued: 25/02/2016 NC# Nonconformance: MNM-01 At Yong Peng Estate and Kempas Klebang Estate, the working contracts in Bahasa Malaysia version have the signature of the foreign worker concerned. There are also working contracts in Bangladesh, Hindi and Nepalese languages. However, there was no evidence to support that such contracts were fully understood as these contracts were not signed by the respective foreign workers.
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Root Cause and Corrective Action: Root Cause Analysis: • Working contract in other languages is meant for reference only as stated in Item 26.4 in the contract. In order to ensure such contracts were fully understood by the respective foreign workers, two briefing sessions were held upon their arrival at Sime Darby as follows; 1. During Induction Session conducted at the Workers Management Centre (WMC), Sua Betong by the WMC Executive. 2. During arrival at the Operating Units (OU)
• However during the audit, documents (evidences) to support both the program (e.g. syllabus for Induction Program, list of attendance, particulars of trainer and translator) are not adequately maintained at the OU.
Corrective Action: Action 1 • Supporting documents from WMC, Sua Betong being made available at the OUs
Action 2 • Both estates conducted briefing on the contract to the foreign workers assisted by appointed translator (colleagues from respective nationality). • OUs Assistant Manager (appointed PIC) to conduct the briefing upon arrival of foreign workers at the OUs.
Verification (Corrective Action): Off-site verification carried out. Verified that the two corrective actions taken are evidenced by the following:
• Supporting documents for the Induction Session conducted at Workers Management Centre (WMC ) as follows; 1. Summary of items covered during the Induction Session for foreign workers on 03/02/2016 that includes the working contract. 2. Attendance List for the Induction Session at the WMC.
• Photos and attendance lists of the contract briefings conducted as follows: 1. At Kempas Klebang Estate on 16 Mar 2016 by the Assistant Manager, Tuan Khairul Anam, attended by 16 foreign workers (from Bangladesh, Sri Lanka, Myanmar & India). 2. At Yong Peng Estate on 17 Mar 2016 by the Assistant Manager, Tuan Mohd Shaiful Ifsan attended by 7 foreign workers (from Bangladesh, India & Nepal).
The corrective actions satisfactorily addressed the non-conformance.
NC status verified by auditor: Closed by OCL Date closed: 23/03/2016 Verification (for effectiveness): At next ASA-02
3.2.3 Year 2015: Re-certification Assessment (0 Observations) Status MYNI Opened Closed Follow up Ref No: Location Details of Observation Indicator date date remarks (if any) Nil - - Nil - - -
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3.2.4 Year 2016 ASA-01: 4 Observations Status RSPO Opened Closed Remark, Ref No: P&C Location Details of Observation date date if any Indicator OBS: 4.6.2 Kempas Records of pesticides use are 25 Feb - Follow up OCL-01 Klebang available. However, the record did 2016 in next Estate not indicate clearly the area treated, assessment amount of active ingredients applied per ha and number of applications.
OBS: 5.1.3 Yong The paint marking on the trees for 25 Feb - Follow up SH-01 Peng demarcation of the buffer zone had 2016 in next Estate and faded and therefore making the assessment Kempas extent of boundary unclear. Klebang In addition, old and worn out Estate signages at various locations (e.g. ponds and river buffer zones) need to be refurbished or replaced.
OBS: 6.1.2 POM, The POM and estates have 25 Feb - Follow up MNM- Yong conducted the stakeholders’ 2016 in next 01 Peng consultation. However, the number assessment Estate and of stakeholders present were very Kempas few although a significant number Klebang had been invited. Action should be Estate taken to have a greater participation from affected parties.
OBS: 6.2.3 POM, Stakeholders list should be reviewed 25 Feb - Follow up MNM- Yong and updated regularly to include any 2016 in next 02 Peng new suppliers and contractors. assessment Estate and Also, it was noted that stakeholders Kempas (e.g villagers) have made certain Klebang requests and actions have been Estate taken by POM and estates. However, there was a lack of proper documentation and records on such matters.
3.2.5 Identified Positive Elements
1) The PMU has good implementation of the RSPO sustainable activities.
2) The PMU has made significant contributions to the local communities for infrastructure, social and religious activities.
3.3 Feedback Raised by Stakeholders and Findings
Prior to and during the Assessment, written and verbal feedback communicated from the stakeholders on the environmental and social performance of the PMU operations were sourced. All pertinent feedback issues were reviewed and followed up for verification and these had been accordingly incorporated into the report findings. See table below:
3.3.1 Feedback Raised by Stakeholders: Re-Certification Assessment (Year 2015) Communication done via email on 06 Mar 2015 (See list under para 2.5 ): INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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Stakeholders’ Feedback PMU Response CB verification / Follow up comments comments (if any) Government Agencies: No response needed Verified no response Nil No feedback received. needed
Non-Governmental No response needed Verified no response Nil Organizations: needed No feedback received.
Local Communities: Stakeholder interviews were made during assessment from 20 to 23 Apr 2015 at the PMU
A total of 20 stakeholders [ ie comprising Gender Committee members – 1 nos, Workers – 1, Contractors/suppliers – 7 nos, Independent smallholders – 2, Local community (School & Clinics) – 4 nos, Government agencies (Auxilliary Police, Firefighters) – 3 nos, NGO’s – 0 nos and Head of Village – 2 nos.] were interviewed during the on-site assessment. No response needed Verified no response Nil No issues or concerns raised. needed
Other Interested parties: No response needed Verified no response Nil No feedback received. needed
3.3.2 Feedback Raised by Stakeholders: Surveillance Assessment ASA-01 (Year 2016) Communication done via email on 04 Jan 2016 (See list under para 2.5 ):
Stakeholders’ Feedback PMU Response CB verification / Follow up comments comments (if any) Government Agencies: No feedback received. Ongoing consultations will Verified during on-site Nil be maintained. assessment that no No response needed. response needed.
Non-Governmental Organizations: No feedback received. Ongoing consultations will Verified during on-site Nil be maintained. assessment that no No response needed. response needed.
Local Communities - Stakeholders’ Consultation: At SOU 21 Gunung Mas PMU, a total of 34 stakeholders were present at the Stakeholders Consultation, comprising of Gender Committee members – 4, Workers (local and foreign INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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workers) – 20, Contractors/suppliers – 4 FFB Suppliers – 0, smallholders – 0, Local Community (School & Clinics) – 3, Government agencies (Auxilliary Police, Firefighters) – 2 and Head of Village – 1 nos. They were interviewed by the auditors without the presence of any of the PMU staff.
Concerns and suggestions raised include:
Only one concern raised, viz., The management will look To be followed up during the - Auxilliary Police (“Polis into the barrier gate system next Annual Surveillance Bantuan”) at Kempas Klebang and identify if there is any Assessment. estate expressed their concern improvement can be made on the barrier gate system to open/close the barrier which was heavy to pull the gate with the lighter weight. rope and caused injuries to the security personnel in early Feb 2016.
Local Communities - Interviews: Interviews of sampled staff and workers were also conducted by the auditors during field visits from 22 to 25 Feb 2016 at the PMU:
No issues raised by the No response needed. No response needed. Nil sampled staff and workers.
Other Interested parties: No response needed. No response needed. Nil No feedback received.
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4.2 INTERTEK- RSPO P&C Certificate details for SDPSB Gunung Mas Grouping
Certificate No: RSPO 901888 Original issue date: 19 May 2010 New issue date: 19 May 2016 Expiry date: 18 May 2020 Organization Sime Darby Plantation Sdn Bhd Address of Head Office: Wisma Guthrie, 21, Jalan Gelenggang, 50490, Bukit Damansara, Kuala Lumpur RSPO Membership No: 1-0008-04-000-00 Plantation Management Unit: SOU 21 Gunung Mas Grouping Address of POM: KKS Gunung Mas, K/B No. 524, 86009 Kluang, Johor, West Malaysia. Standards: RSPO Principles and Criteria (Apr 2013); Malaysian National Interpretation (Nov 2014); RSPO Supply Chain Certification Standard (Nov 2014) for the Palm Oil Mill. Certification scope: Production of Crude Palm Oil and Palm Kernels Supply Chain module for Identity Preserved (IP) CPO & PK:
Details of the Mill and Supply bases covered by this certificate and the tonnage approved are: GPS Reference Certified Name Address (Titled) Area Latitude Longitude (ha) Gunung Mas Palm Oil Mill KKS Gunung Mas, K/B No. 524, 2.344º N 103.138º E (POM capacity: 60 86009 Kluang, Johor, West Malaysia. MT/hr) Ladang Gunung Mas, K/B No. 512, Gunung Mas Estate 2.248º N 103.149º E 86009 Kluang, Johor, West Malaysia. 12,410 Kempas Klebang Ladang Kempas Klebang, K/B No 105, 2.218º N 103.172º E Estate 86009 Paloh, Johor, West Malaysia. Ladang Bukit Paloh, K/B No 107, Bukit Paloh Estate 2.140º N 103.175º E 86009 Paloh, Johor, West Malaysia. Ladang Yong Peng, 83700 Yong Peng, Yong Peng Estate 2.085º N 103.143º E Johor, West Malaysia.
The annual certified tonnages produced at the PMU are detailed as follows:
Gunung Mas POM Annual Tonnages (MT) Certified FFB 210,519 Certified CPO 46,419 Certified PK 11,579 Supply chain module Identity Preserved (IP)
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Appendix A:
Qualifications of Lead Assessor and Assessment Team
Dr. Ooi Cheng Lee (OCL) Lead Assessor / Technical Expert (Palm Oil Mill, Environment, OHSAS, Social, HCV, Land Use and Supply Chain) - PhD in Welding, Cranfield University, UK - M.Sc. (Engineering) in Metallurgy, University of Birmingham, UK - B.App.Sc (Hons), Science University of Malaysia - Diploma in Translation for Science and Technology, Malaysia Translation Society
Dr. Ooi Cheng Lee is an IRCA Lead Auditor and Lead Tutor for ISO 9001. He is also involved in auditing in other integrated management systems. He has successfully completed the RSPO Lead Assessor Course for Principles and Criteria (RSPO P&C) and the RSPO Supply Chain Certifications (RSPO SCC). He is currently involved in the management of all types of system and process/product certification in Intertek. He has more than 32 years work experience in product and process specifications, research & development, inspection and testing, quality assurance, engineering development, training, product certification, auditing and quality management system certification. He has conducted assessments of organizations in Malaysia, Singapore, Indonesia, Vietnam, Philippines, China, Myanmar, Cambodia and other regional countries. Assessments include those of rubber and oil palm plantations in Malaysia and Indonesia. His previous position as the General Manager of Lloyd’s Register Quality Assurance (LRQA) Malaysia include the management of all types of systems certification, including that of environmental (ISO 14001), safety & health (OHSAS 18001) and Clean Development Mechanisms (CDM). He is currently the General Manager in Intertek Certification International Sdn. Bhd. He is a member of the Internal Review Panel for RSPO Assessment reports since May 2011. He is part of the RSPO CB Assessment team which audited RSPO certified Plantation Management Units since 2012.
Mr. Sazali Hasni (SH) – Assessor / Technical Expert (Environment, Conservation and HCV area) - Bachelor of Science (Forestry)
Mr. Sazali Hasni has over 25 years work experience in the forestry sector. He is an IRCA Auditor for ISO 9001 and auditor for the PEFC Chain-of-Custody Certification. He has successfully completed training in the Intertek In House RSPO P&C, MYNI. He was a member in the stakeholder consultation and development of the Malaysian Criteria & Indicators (MC&I) for Forest management Certification. He has been involved in the auditing of Forest Management Certification for the Perak State Forestry Department and Pahang State Forestry Department. He has also been involved with a German based company in testing their criteria for carbon tracing in an oil palm plantation in 2011. He had also acted as the regional consultant to International Tropical Timber Organization (ITTO) for the Asia Pacific region in the Evaluation and Monitoring of Projects funded by the organization from 1994 to 1998. Projects funded are mainly forestry related such as reforestation, conservation, community forestry apart from other research based projects.
Mr. Mohd Nazib bin Marwan (MNM) – Assessor / Technical Expert (Occupational Health & Safety and Social) – Diploma in Mechanical Engineering
Mr Mohd Nazib Marwan has over 11 years work experience in occupational safety and health sector (since 2003). He has 5 years working experience as Factories and Machinery Inspector with Department of Occupational Safety & Health Malaysia (DOSH) and earlier he has been certified with Certificate for Safety and Health Officer from National Institute of Occupational Safety and Health (NIOSH). He has successfully completed the IRCA accredited Lead Auditor Course in ISO 9001:2008, OHSAS 18001: 2007 and the Intertek In -House training on RSPO P&C and MYNI Assessor courses. He is also an ISO 9001 Lead Auditor and OHSAS 18001 auditor with Intertek, Malaysia and has performed over 400 auditing days on quality, safety and health in various sectors including palm oil industries since 2012. He is a member of the RSPO CB Assessment team which audited several RSPO certified Plantation Management Units since 2014.
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Appendix B:
Assessment Plan (Actual)
Date Time Assessors and Assessment Activity Asssessment Team 22 Feb 16 8.00 am - Travel to Hotel Monday 11.00 am 11.00 am - Travel to SOU 21 Gunung Mas grouping Palm Oil Mill (POM) Office (Day 1) 12.00 pm 12.00 pm - Lunch Break 1.00 pm 1.00 pm - Opening Meeting and Briefing at POM Office 1.30 pm (to be attended by representatives from the Estates as well) 1.30 pm - Document Review and Assessment by all Assessors on respective 5.00 pm RSPO P&C:1 to 8 at POM OCL SH MNM Site assessment at Palm Oil Site assessment at Site assessment at Palm Mill Palm Oil Mill Oil Mill • P1 Transparency • P2 Laws & • P2 Laws & regulations • P2 Laws & regulations regulations • P6 Employees, • P3 Economic & Financial • P5 Environmental, Individuals & Viability Conservation & HCV Communities incl. • P4 Best Practices at Mill • P8 Continual Gender Issues • P8 Continual Improvement Improvement • P8 Continual • SCC for POM Improvement • Review of changes for compliance to revised RSPO P&C, MYNI and RSPO SCC • Verification of effectiveness of corrective actions for non-conformances • Review of Time Bound Plan • Verification for compliance with rules on partial certification 5.00 pm - Travel to Hotel & Break 6.00 pm 6.00 pm - Team Meeting and Discussion 7.00 pm
Date Time Assessors and Assessment Activity 23 Feb 16 8.30 am - OCL SH MNM Tuesday 12.30 pm Site assessment at Yong Site assessment at Site assessment at Yong Peng estate Yong Peng estate Peng estate (Day 2) • P1 Transparency • P2 Laws & • P2 Laws & regulations • P2 Laws & regulations regulations • P6 Employees, • P3 Economic & Financial • P5 Environmental, Individuals & Viability Conservation & HCV Communities incl. • P4 Best Practices at Estates • P8 Continual Gender Issues • P7 New Plantings Improvement • P8 Continual • P8 Continual Improvement Improvement 12.30 pm - Lunch Break 1.30 pm 1.30 pm - Continue site assessment at Yong Peng estate 5.00 pm 5.00 pm - Travel to Hotel & Break 6.00 pm 6.00 pm - Team Meeting and Discussion 7.00 pm
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Date Time Assessors and Assessment Activity 24 Feb 16 8.30 am - OCL SH MNM Wednesday 12.30 pm Site assessment at Kempas Site assessment at Site assessment at Klebang estate Kempas Klebang Kempas Klebang estate (Day 3) • P1 Transparency estate • P2 Laws & regulations • P2 Laws & regulations • P2 Laws & • P6 Employees, • P3 Economic & Financial regulations Individuals & Viability • P5 Environmental, Communities incl. • P4 Best Practices at Conservation & HCV Gender Issues Estates • P8 Continual • P8 Continual • P7 New Plantings Improvement Improvement • P8 Continual Improvement 12.30 pm - Lunch Break 1.30 pm 1.30 pm - Continue site assessment at Kempas Klebang estate 5.00 pm 5.00 pm - Travel to Hotel & Break 6.00 pm 6.00 pm - Team Meeting and Discussion 7.00 pm
Date Time Assessors and Assessment Activity 25 Feb 16 8.30 am - OCL SH MNM Thursday 10.30 am Site assessment at Palm Stakeholders’ Consultation on the following Oil Mill categories (see Notes 1 and 2 below): (Day 4) • P1 Transparency • Contractors • P2 Laws & regulations • Suppliers • P3 Economic & • Transporters Financial Viability • NGOs • P4 Best Practices at Mill • Government Department / Agencies • P8 Continual • Local Community Improvement • Settlers, in the case of independent and • SCC for POM organized smallholders. Notes 1. It is mandatory for the PMU to inform Intertek and provide the information (as a minimum the no. of stakeholders in each applicable category and contact number) on the stakeholders prior to the assessment. 2. This will facilitate the random and impartial selection of stakeholders (including independent and organized smallholders, where applicable) and to meet the sample size requirement. 10.30 am - Site assessment at POM or estates to follow up on any specific criteria/areas 12.30 pm 12.30 pm - Lunch Break 1.30 pm 1.30 pm - Preparation for Closing Meeting 3.00 pm 3.00 pm - Team Meeting and Discussions with PMU Management Representative 3.30 pm 3.30 pm - Closing Meeting & Briefing at Palm Oil Mill Office 5.00 pm INTER TEK CE RTIFICA TION IN TERNATI ONAL S DN BHD (188296-W)
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Appendix C -1:
Location M ap of SDPSB Gunung Ma s Grouping, J oho r, Malay sia
SOU 21 Gunung Mas INTER TEK CE RTIFICA TION IN TERNATI ONAL S DN BHD (188296-W)
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Appendix C -2:
Loc ation Map of SDPSB G unung Mas Estate INTER TEK CE RTIFICA TION IN TERNATI ONAL S DN BHD (188296-W)
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Appendix C-3:
Locati on Map of SDPSB Ke mpas Kleba ng Estate
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Appendix C-4:
Lo cation Map of SDPSB Bukit Paloh Estate
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Appendix C-5:
Lo cation Map of SDPSB Yong Peng Estate
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Appendix D:
Photographs of Assessment Findings at SDPSB Gunung Mas Grouping, Johor, Malaysia
Harvesting operation at Yong Peng Estate, SOU 21 Interviewing manuring workers at Yong Peng Estate Gunung Mas Grouping
Interviewing pesticide sprayers at Yong Peng Estate Yong Peng Estate – Rat baiting operation INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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Kempas Klebang Estate – Good growth of beneficial Kempas Klebang Estate – Landfill site plant, Euphobia Heterophylla for control of bagworms
Kempas Klebang Estate – Separate trailer for workers Kempas Klebang Estate – Harvesting operation INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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Appendix E:
Time Bound Plan as submitted by SDPSB
Table 1: Initial Timebound Plan and Summary of RSPO Certification Status as at Dec 2015 This document shall be read together with the Attachments (I & II)
Financial year (July –June) Targeted Achieved/Status Attachments Jun-08 5 SOUs Achievement of Timebound Plan Sime Darby Plantation has had all its SOUs (Malaysian & Indonesian) completing the RSPO Main Assessment by end Dec 2011 in 2008/2009 20 SOUs accordance to the initial timebound plan. As (from Malaysia and at Dec 2011, all Malaysian SOUs have been Indonesia) RSPO certified (with the exception of 2 new oil mills i.e. Pagoh and Sua Betong Oil Mills commissioned to replace the current oil mills after the initial timebound plan targets). Both For details please refer to 2009/2010 20 SOUs new mills/SOUs have undergone RSPO Attachments: (from Malaysia and Main Assessment and certified in early 2014. i) SDP - RSPO Certification Status for Indonesia) Malaysia Operations 98% of Sime Darby Plantation's upstream ii) SDP- RSPO Certification Status for operations is RSPO certified, one SOU - PT Indonesia Operations MAS pending certification in Indonesia due iii) RSPO SCCS status for Sime Darby 2010/2011 (End Dec 17 SOUs to some social disputes. Sime Darby Plantation (Downstream Operations) 2011) (from Malaysia and Plantation will proceed with the next steps of Indonesia) certification upon satisfactory resolution of the matter. Note: Time-bound plan to achieve 100% RSPO certification has shifted to 2015 . Revision of total number of SOUs The total number of mills have been revised from 59 w.e.f Aug 2013 due to strategic alignments/closure of mills.
Note: SOU - Strategic Operating Units (consisting of one oil mill and supplying estates)
Table 2: Details of RSPO Certification Status as at Dec 2015 This document shall be read together with the Attachments (I & II)
Status Malaysia Indonesia Total Remarks Malaysia RSPO Certified 34 24 58 * Effectively 34 SOUs. - Sg Samak and Jeleta Bumi, Yong Peng, Sepang, Mostyn and Segaliud Palm Oil Mills have been closed down.
Indonesia * Effectively 25 SOUs
Undergoing Indonesia Stage 1 or 0 1 1 * PT MAS has undergone RSPO Main assessment and is delayed due to Stage 2 some social disputes.
Total SOUs 34 25 59 Note: Revised number of SOUs for SDP is 59 beginning Aug 2013.
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Attachment I: SDPSB - RSPO Certification Status for Malaysia Operations
Date of End Date of Certificate Number Certification Certification 1 Sg. Dingin Karangan, 12 Aug '10 11 Aug '15 SPO 550179 Active Kedah 2 Chersonese Kuala 5 Oct '11 4 Oct '16 CU-RSPO-815148, Active Kurau, SPO 590800 Perak 3 Elphil Sg Siput, 18 Jun '11 17 Jun '16 SPO 550180 Active Perak 4 Flemington Teluk Intan 5 Oct '11 4 Oct '16 CU-RSPO-819144, Active SPO 590802 5 Seri Intan Teluk Intan 3 Mar '11 2 Mar '16 CU-RSPO-811218, Active RSPO 0016 5 Selaba Teluk Intan 3 Mar '11 2 Mar '16 CU-RSPO-819142, Active RSPO 0015 5a Sg Samak 3 Mar '11 Not Not Applicable Withdrew. Applicable Ceased operations. 6 Tennamaram Bestari 3 Mar '11 2 Mar '16 CU-RSPO-819143, Active Jaya, RSPO 0014 Selangor 7 Bkt Kerayong Kapar, 15 Apr '11 14 Apr '16 SPO 550181 Active Selangor 8 East Carey 19 May '10 18 May '15 SPO 543543 Active Island, Selangor 9 West Carey 19 May '10 18 May '15 SPO 543594 Active Island, Selangor 9a Sepang Sepang, 19 May '10 Not Not Applicable Withdrew. Selangor Applicable Ceased operations. 10 Bukit Puteri Raub, 7 Jul '11 6 Jul '16 CU-RSPO- Active Pahang 815147, 18502206001 11 Kerdau Termeloh, 7 Jul '11 6 Jul '16 CU-RSPO- Active Pahang 819155, 18502207001 12 Jabor Kuantan, 7 Jul '11 6 Jul '16 CU-RSPO- Active Pahang 819156, RSPO 928288 13 Labu Nilai, Negeri 30 Dec '11 29 Dec '16 CU-RSPO-819163, Active Sembilan SGS-RSPOPM- MY13/01284 14 Tanah Merah Port 19 May '10 18 May '15 SPO 541905 Active Dickson, Negeri Sembilan 15 Sua Betong Port 18 Feb '14 17 Feb '19 SGS-RSPO/PM- Active, New Sua Betong Oil Mill Dickson, MY14/01364 Application has been Negeri commissioned to Sembilan replace Rantau Oil Mill with Certificate No. CU-RSPO-819165, Certificate date:- 30 Dec 2011 16 Kok Foh Bahau, 7 Jul '11 6 Jul '16 CU-RSPO- Active Negeri 819157, RSPO Sembilan 928188 17 Kempas Jasin, 19 May '10 18 May '15 RSPO 005 Active Melaka 18 Diamond Jasin, 5 Oct '11 4 Oct '16 CU-RSPO-819146, Active Jubilee Melaka SPO 591224 19 Pagoh Muar, Johor 28 Jan’14 27 Jan’19 SPO 600305 Active, New Pagoh Oil Mill has Application been commissioned to INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
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replace Nordanal Oil Mill with Certificate no. SPO 549297, certification date 7 Jan 2011 19a Yong Peng Yong Peng, 20 Oct ‘10 19 Oct ’15 SPO 550182 Withdrawn, Johor Mill closed down 20 Chaah Chaah, 18 Nov ‘10 17 Nov ‘15 SPO 548299 Active Johor 21 Gunung Mas Kluang, 19 May ‘10 18 May ‘15 RSPO 901888 Active Johor 22 Bukit Benut Kluang, 5 Oct ‘11 4 Oct ’16 CU-RSPO Active Johor 819147, SPO 591229 23 Ulu Remis Layang, 12 Apr ‘11 11 Apr ‘16 SGS-RSPO/PM- Active Johor 00722 24 Hadapan Layang, 29 Mar ‘11 28 Mar ’16 SGS-RSPO/PM- Active Johor 00715 25 Segaliud Sandakan, 20 May ‘10 19 May ’15 SPO 547123 Withdrawn, Sabah Mill closed down 26 Sandakan Sandakan, 1 Oct ‘08 30 Sep ’18 SPO 537872 Active Bay Sabah 27 Melalap Tenom, 21 jan ‘11 20 Jan ’16 SPO 547124 Active Sabah 28 Binuang Kunak, 16 Jan ‘09 15 Jan ’14 RSPO 001 Active sabah 29 Giram Tenom, 16 Jan ‘09 15 Jan ’14 RSPO 002 Active Extension of eTrace Sabah granted by RSPO till mid Apr 2015 for SOU Binuang, Giram and Merotai to undergo the re-certification process. 30 Merotai Tawau, 16 Jan ‘09 15 Jan ’14 RSPO 004 Active Sabah 30a Jelata Bumi Kunak, 24 May ‘10 Not Not Applicable Withdrew, Sabah Applicable Ceased operations 30b Mostyn Kunak, 16 Jan ‘09 Not Not Applicable Withdrew, Sabah Applicable Ceased operations 31 Lavang Bintulu, 30 Dec ‘11 29 Dec ‘16 CU-RSPO 819166 Active Srawak 32 Rajawali Bintulu, 30 Dec ‘11 29 Dec ‘16 CU-RSPO Active Srawak 819167, RSPO 0020 33 Derawan Bintulu, 30 Dec ‘11 29 Dec ‘16 CU-RSPO Active Srawak 819169, RSPO 0019 34 Pekaka Bintulu, 30 Dec ‘11 29 Dec ‘16 CU-RSPO 815150 Active Srawak
INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)
Report No.: R2018/09-7 Sime Darby Plantation Sdn Bhd Page 69 of 69 SOU 21 Gunung Mas Grouping: 1 st Surveillance Assessment
Attachment II: SDPSB - RSPO Certification Status for Indonesia Operations
Date of End Date of Certificate Number Certification Certification 1 PT LAHAN TANI SAKTI ALUR DUMAI Bagan Sinembah/Tanh 16 Jan ‘12 16 Jan ‘17 MUTU-RSPO/011 Putih, Pujud, Rokan Hilir, Riau 2 PT SAJANG HEULANG ANGSANA Sebamban, Indonesia 6 Jul ‘11 6 Jul ‘16 MUTU-RSPO/006b MINI 3 PT SAJANG HEULANG MUSTIKA OIL Sebamban, Indonesia 3 Jul ‘13 3 Jul ‘18 MUTU-RSPO/027 MILL
4 PT LADANGRUMPUN ANGSANA Sebamban, Indonesia 6 Jul ‘11 6 Jul ‘16 MUTU-RSPO/006a SUBURUBADI 5 PT LANGGENG BEBUNGA Pamukan Utara, Tanah 16 Mar ‘12 16 Mar ‘17 MUTU-RSPO/014 MUARAMAKMUR Grogot, Kotabaru/Pasir, Kalimantan Selatan/ Kalimantan Timur 6 PT KRIDATAMA SUKAMANDA Seruyan Tengah, Sampit, 5 Jul ‘11 5 Jul ‘16 MUTU-RSPO/003 LANCAR Seruyan, Kalimantan NG Tengah 7 PT BAHARI GEMBIRA LADANG Kumpeh Ulu, Jambi, Muaro 9 Jul ‘12 9 Jul ‘17 MUTU-RSPO/019 RIA Jambi, Jambi PANJANG 8 MANGGALA Riau, Indonesia 25 Nov ‘10 25 Nov ‘15 MUTU-RSPO/002 PT TUNGGAL MITRA PLANTATIONS 9 PT PARIPURNA PONDOK Pamukan Selatan, Tanah 16 Mar ‘12 16 Mar ‘17 MUTU-RSPO/016 SWAKARSA Grogot, Kotabaru, LABU Kalimantan Selatan 10 PT BERSAMA GUNUNG ARU Sebamban, Indonesia 5 Jul ‘11 5 Jul ‘16 MUTU-RSPO/005 SEJAHTERA SAKTI 11 PT GUTHRIE RANTAU Muara Lakitan, Lubuk 16 Mar ‘12 16 Mar ‘17 MUTU-RSPO/017
PECCONINA PANJANG Linggau, Musi Rawas Sumatera Selatan 12 PT LAGUNA MANDIRI RANTAU Sungai Durian, Kotabaru, 30 Dec ‘11 30 Dec ‘16 MUTU-RSPO/009 Kalimantan Selatan 13 PT LAGUNA MANDIRI BETUNG OIL Sungai Durian, Kotabaru, 1 Apr ‘14 1 Apr ‘19 MUTU-RSPO/009 MILL Kalimantan Selatan 14 PT INDOTRUBA SEKUNYIR Kalimantan Tengah, 23 Nov ‘10 23 Nov ‘15 MUTU-RSPO/001 TENGAH Indonesia 15 PT SWADAYA ANDIKA SELABAK Sungai Durian, Kotabaru, 16 Mar ‘12 16 Mar ‘17 MUTU-RSPO/015 Kalimantan Selatan 16 PT BINA SAINS SG. PINANG Muara Lakitan, Lubuk 11 Sep ‘12 11 Sep ‘17 MUTU-RSPO/020 CEMERLANG Linggau, Musi Rawas, Sumatera Selatan 17 PT TEGUH SEMPURNA PEMANTANG Kuala Kuayan, Sampit, 5 Jul ‘11 5 Jul ‘16 MUTU-RSPO/004 Kotawaringin Timur, Kalimantan Tengah 18 PT BHUMIREKSA NUSA TELUK BAKAU Pelangiran, Sg. Guntung, 11 Oct ‘11 11 Oct ‘16 MUTU-RSPO/008 SEJATI Indragiri llir, Riau 19 PT BHUMIREKSA NUSA MANDAH OIL Pelangiran, Sg. Guntung, 1 Apr ‘14 1 Apr ‘19 MUTU-RSPO/008 SEJATI MILL Indragiri llir, Riau 20 20 PT ANEKA TELUK SIAK Tualang, Perawang, Siak, 11 Oct ‘11 11 Oct ‘16 MUTU-RSPO/007 INTIPERSADA Riau 21 21 PT TAMACO GRAHA UNGKAYA Witaponda, Kolonodale, 10 Jul ‘12 10 Jul ‘17 MUTU-RSPO/018 KRIDA Morowali, Sulawesi Tengah 22 PT SIME INDO AGRO BK AJONG Kalimantan Barat, 18 Aug ‘10 17 Aug ‘15 SPO 541399 Indonesia 23 PT PADANG PALMA BLANG SIMPO Karang Baru, Kuala 3 May ‘13 3 May ‘18 MUTU-RSPO/026 PERMAI/PT PERKASA Simpang, Aceh SUBUR SAKTI Tamiang,Nangroe Aceh Darussalam 24 PT SANDIKA LEMBIRU Desa Suka Karya Kec. 3 Jul ‘14 2 Jul ‘19 MUTU-RSPO/044 NATAPALMA / Marau Kab. Ketapang, PT BUDIDAYA AGRO Kalimantan Barat LESTARI 25 PT MITRAL AUSTRAL MAS Mill Desa Rahayu Kec. Parindu Undergone RSPO Main Assessment. SEJAHTERA Kab.Sanggau, Kalimantan Delayed due to some disputes. Barat End of report