CONFIDENTIAL
MSC/RSPO/DOC/06-02 Issue 1 Rev. 0
TABLE OF CONTENT Page no
1.0 Introduction 1.1 Description of The Certification Unit 5 1.2 Time Bound Plan for Other Management Units and Justification 5 1.3 Location of Mills and Estates 5 1.4 Description of The Supply Base 6 1.5 Other Management System Certification Held 8 1.6 Organizational Information / Contact Person 8 1.7 Approximate Tonnages Offered for Certification (CPO and PK) 9
2.0 Assessment Process 9 2.1 Assessment Methodology 9 2.2 Date of Next Surveillance Audit 10 2.3 Assessment Team 10 2.4 Stakeholder Consultation 13 3.0 Assessment Findings 15 4.0 Assessment Recommendation 49 5.0 Organization’s Acknowledgement of Internal Responsibility and Formal 49 Sign-off of Assessment Findings
List of Tables
Table 1 Workers composition in the Certification Units Table 2 Location of mills and estates Table 3a Actual 3 Years (2006 – 08) Average of FFB production – Terusan Certification Unit Table 3b Actual 3 Years (2006 – 08) Average of FFB production – Ribubonus Certification Unit Table 4 Areas of plantation Table 5a Percentage of planted area in Terusan 1 Estate by age and planting cycle Table 5b Percentage of planted area in Terusan 2 Estate by age and planting cycle Table 5c Percentage of planted area in Rumidi Estate by age and planting cycle Table 5d Percentage of planted area in Ribubonus Estate by age and planting cycle Table 6 Terusan & Ribubonus – Approximate CPO and PK tonnage claimed for certification List of Attachment
Attachment 1a Location map for Terusan and Ribubonus in Sabah, Malaysia Attachment 1b Location map for Terusan and Ribubonus in neighbouring context Attachment 2 Assessment programme Attachment 3 Detail of non-conformity and corrective actions taken
MSC/RSPO/DOC/06-02 2 Issue 1 Rev. 0 Attachment 4 Comments from stakeholder NOTE: Abbreviation used
3R Reduce, reuse and recycle AIM Asian Institute of Management APEC – EPU Asia Pacific Economic Cooperation – Economic Planning Unit BCT Borneo Conservation Trust BOD Biochemical Oxygen Demand BOMBA Fire and Rescue Department B.Sc. Bachelor of Science CHRA Chemical Health Risk Assessment COD Chemical Oxygen Demand CPO Crude Palm Oil CSDS Chemical Safety Data Sheet CSR Corporate Social Responsibility DOE Department of Environment DOSH Department of Occupational Safety and Health EFB Empty Fruit Bunch EHA Estate Hospital Assistant EIA Environmental Impact Assessment EPF Employees Provident Fund EQA Environmental Quality Act ERT Endangered, Rare and Threatened Species EARA Environmental Auditors Registration Association FFB Fresh Fruit Bunch FSC Forest Stewardship Council FR Forest reserve GAP Good Agricultural Practice HCV High Conservation Value HIRARC Hazard Identification, Risk Assessment and Risk Control IPM Integrated Pest Management ISO International Organization for Standardization IRCA International Register of Certificated Auditors IUFRO International Union of Forest Research Organization JOAS Jaringan Orang Asal SeMalaysia JCC Joint Consultative Committee KPI Key Performance Index M.E Master of Engineering MBA Master of Business Administration MDP Management Development Programme MIS Management Information Services MoU Memorandum of Understanding M.Phil Master of Philosophy MPOA Malaysian Palm Oil Association MPOB Malaysia Palm Oil Board MS GAP-OP Malaysian Standard Good Agricultural Practice – Oil Palm MTCC Malaysian Timber Certification Council MYNI Malaysia National Interpretation MYNI – WG Malaysia National Interpretation – Working Group NCR Non-conformity Report NGO Non Government Organisation NIOSH National Institute of Occupational Safety and Health OER Oil Extraction Rate OSH Occupational Safety and Health OHSAS Occupational Health and Safety Assessment Series OHSMS Occupational Health and Safety Management System PACOS Partners of Community Organizations
MSC/RSPO/DOC/06-02 3 Issue 1 Rev. 0 PERKESO Social Security Organization PAN AP Pesticide Action Network Asia Pacific PDRM Polis Di-Raja Malaysia Ph.D. Doctor of Philosophy PIC Person in-Charge PK Palm Kernel POME Palm Oil Mill Effluent PPE Personal Protective Equipment ppm Parts per million PUSPAKOM Pusat Pemeriksaan Kenderaan Berkomputer / Computerized Vehicle Test Centre RBPOM Ribubonus Palm Oil Mill RSPO Roundtable on Sustainable Palm Oil SECA Sabah Employers‟ Consultative Association SS Suspended Solid SHO Safety and Health Officer SIA Social Impact Assessment SOP Standard Operating Procedure SLDB Sabah Land Development Board TPOM Terusan Palm Oil Mill TOR Terms of Request USA United States of America WTP Water Treatment Plant WWF World Wide Fund for Nature
MSC/RSPO/DOC/06-02 4 Issue 1 Rev. 0
RSPO ASSESSMENT REPORT
1.0 Introduction
1.1 Description of The Certification Unit (Estate and Mill)
The certification units that had been assessed are Terusan and Ribubonus which are wholly- owned subsidiary company of PPB Oil Palms Berhad. Terusan consist of Terusan Palm Oil Mill, Terusan 1 Estate, Terusan 2 Estate and Rumidi Estate, while Ribubonus consists of Ribubonus Palm Oil Mill and Ribubonus Estate. Both units underwent the RSPO assessment by SIRIM QAS International Sdn. Bhd. simultaneously.
Terusan Palm Oil Mill (TPOM) commenced operations in 1995 with a processing capacity of 60 metric tonnes of fresh fruit bunches (FFB) per hour. Ribubonus Palm Oil Mill (RBPOM) commenced operations in 2008 with a processing capacity of 40 metric tonnes of fresh fruit bunches (FFB) per hour.
The total workforce and composition for Terusan and Ribubonus are described as follows:
Table 1: Workers composition in the Certification Units
Operating Units Local workers Foreign Workers Total Terusan POM 87 29 116 Ribubonus POM 54 16 70 Terusan 1 Estate 140 343 483 Terusan 2 Estate 58 265 323 Rumidi 45 159 204 Ribubonus Estate 67 445 512 Total 451 1257 1708
Generally, foreign workers consist about 74% of the total population. However, out of 186 workers in both of the mill, 75% of them are local. Both local and foreign workers were all directly recruited by the company and not on contract basis. Foreign workers were all legally recruited in accordance to the related laws.
1.2 Time Bound Plan for Other Management Units and Justification
PPB Oil Palms has a total of eight certification units (six units in Sabah and two units in Sarawak) with a total area of 77, 300 ha. However, not all areas are planted.
PPB Oil Palms Berhad has established a plan to certify all its units by the end of 2010. The time frame specified in the plan is realistic. In accordance to the plan, most of the units were assessed in 2008. 3 of the units were assessed and certified by Control Union, 2 units (Saremas 1 and Saremas 2) were assessed by SIRIM QAS International in November/December 2008, 2 units are to be assessed in 2009 and the last unit will be assessed in 2010.
MSC/RSPO/DOC/06-02 5 Issue 1 Rev. 0 1.3 Location of Mill and Estates
Both Terusan and Ribubonus are located in Sandakan District, Sabah, Malaysia. Terusan and Ribubonus can be accessed by using the Sandakan – Telupid Road from Sandakan. The distance for both units from Sandakan is about 130 km.
In the immediate vicinity of both Terusan and Ribubonus certification units are a few villages and other oil palm plantations. For Terusan Certification Unit at the Northern side are Kg. Rumidi, Kg. Tendu Batu and Kg. Nangoh. Whereas at the Western area are Kg. Perenchangan, Kg. Bakong-Bakong, Kg. Sualog, Kg. Panimbanan and Kg. Lidong. Kg. Toniting is located at the Southern side while Andamy Plantation is in the East. Bidu-Bidu forest reserve is an immediate adjacent of Rumidi Estate at the Southern side. It is also located at the West side of Terusan 1 & 2 Estate but separated by Andamy Plantation, smallholders‟ lands and government road.
For Ribubonus certification unit, it is surrounded by Ulu Tungud and Bukit Kuamas Forest Reserves from the Northern until the South Western side. Kg. Wonod and Twin Acre Plantation are located at the Southern side while Lipaso Forest reserve is located further east. The Labuk River passes through both certification units.
There are four living quarters (known as line site) within Terusan; one in Terusan 1, two in Terusan 2 Estate (one each for TPOM and Terusan Estate), and one in Rumidi Estate. Whereas in Ribubonus there are 3 living quarters, including one for mill labour.
The location of Terusan and Ribubonus is shown in Attachment 1a – 1b while its coordinates are detailed in Table 2.
Table 2: Location of mills and estates
Operating Unit Latitude Longitude
Terusan Palm Oil Mill 5° 49' 54.687" N 117° 20' 30.315" E Ribubonus Palm Oil Mill 5° 41' 19.977" N 117° 05' 34.150" E Terusan 1 Estate 5° 47' 23.104" N 117° 23'37.202" E Terusan 2 Estate 5° 49' 57.944" N 117°20'22.743" E Rumidi Estate 5° 55' 59.804" N 117° 18'43.466" E Ribubonus Estate 5° 41' 32.763" N 117° 05' 49.962" E *Coordinate readings were taken at the respective administration office.
1.4 Description of Supply Base
TPOM received FFB supply from Terusan 1 Estate, Terusan 2 Estate, Rumidi Estate, smallholders and smallgrowers. RBPOM received FFB from Ribubonus Estate, smallholders, small growers and private owned estates. The average annual FFB contribution from each estate for the past three years (2006 to 2008) is detailed in Table 3a and Table 3b.
MSC/RSPO/DOC/06-02 6 Issue 1 Rev. 0 Table 3a: Actual 3 Years (2006 – 08) Average of FFB production – Terusan Certification Unit
Estate FFB Production Tonnes Percentage % Terusan 1 Estate 73,942 29
Terusan 2 Estate 98,633 39
Rumidi Estate 30,800 12
Smallholders and Smallgrowers 22,747 9
Nearby Private Owned Estate 29,098 11
Total 255,217 100
Table 3b: Actual 3 Years (2006 – 08) Average of FFB production – Ribubonus Certification Unit
Estate FFB Production Tonnes Percentage (%) Ribubonus Estate 72,268.16 78
Smallholders/smallgrowers 1,606.74 2
Nearby Private Owned Estate 18,228.00 20
Total 92,102.90 100
The details of the year of establishment of the estates, and their respective total and planted areas, are given in Table 4, while Table 5a to 5d shows the percentage of planted area in each estate by age and planting cycle.
Table 4: Areas of plantation
Operating Unit Year of Total Area Planted Area establishment (ha) (ha) Terusan 1 Estate 1989,1991 – 93 2,869 2,544.1 Terusan 2 Estate 1990 – 1994 3,485.9 3,221.55 Rumidi Estate 1991 – 2002 1,297.7 1,111.87 Ribubonus Estate 2000 - 2002 3,262 2,887
Table 5a: Percentage of planted area in Terusan 1 Estate by age and planting cycle
Age of Planting cycle Planted area (ha) Percentage of planted area Palm (year) (1st Gen / 2nd Gen) (%) 20 1st Gen 244.6 9.6 18 1st Gen 709.6 27.9 17 1st Gen 1,007.6 39.6
MSC/RSPO/DOC/06-02 7 Issue 1 Rev. 0 16 1st Gen 582.3 22.9 Total 2,544.1 100
Table 5b: Percentage of planted area in Terusan 2 Estate by age and planting cycle
Age of Planting cycle Planted area (ha) Percentage of planted area Palm (year) (1st Gen / 2nd Gen) (%) 19 1st Gen 607.16 18.8 18 1st Gen 1,277.48 39.7 16 1st Gen 1,030.35 32.0 15 1st Gen 306.56 9.5 Total 3,221.55 100
Table 5c: Percentage of planted area in Rumidi Estate by age and planting cycle
Age of Planting cycle Planted area (ha) Percentage of planted area Palm (year) (1st Gen / 2nd Gen) (%) 18 1st Gen 376.19 33.8 15 1st Gen 652.97 58.7 9 1st Gen 53.5 4.8 7 1st Gen 29.21 2.7 Total 1,111.87 100
Table 5d: Percentage of planted area in Ribubonus Estate by age and planting cycle
Age of Planting cycle Planted area (ha) Percentage of planted area Palm (year) (1st Gen / 2nd Gen) (%) 9 1st Gen 227 7 8 1st Gen 1,592 55 7 1st Gen 1,028 36 2* 1st Gen 20 1 0* 1st Gen 20 1 Total 2,887 100 *Previously cleared in 2002 and was reserved for Ribubonus mill expansion.
1.5 Other Management System Certifications Held
Both the mills and all the estates do not hold any form of third-party certification on management systems. Nevertheless, they are all implementing an internal system which is based on the requirements of the ISO 14001: 2004 and the Occupational Health and Safety Act.
1.6 Organizational Information / Contact Person
PPB Oil Palms Berhad through its Headquarter in Sandakan is responsible for overseeing Terusan, Ribubonus and other management units in Sabah. The correspondence address and contact person are as detailed below:
MSC/RSPO/DOC/06-02 8 Issue 1 Rev. 0 PPB Oil Palms Berhad, Sabah Operations, Lot 1A, KM 15, Jalan Labuk, Locked Bag 34, 90009 Sandakan, Sabah, Malaysia.
Contact person: Mr. Tee Seng Heng General Manager Phone: +6089 671546 / +6089 670208 Fax: +6089 670260 e-mail: [email protected]
1.7 Approximate Tonnages Offered for Certification (CPO and PK)
The approximate tonnage of CPO and PK produced, as well as the tonnage claimed for certification, are as follows:
Table 6: Terusan & Ribubonus – Approximate CPO and PK tonnage claimed for certification
Certification Unit CPO Tonnage claimed for PK Tonnage claimed for certification: (MT) certification: (MT) Terusan Palm Oil Mill 42,729 10,032 Ribubonus Palm Oil Mill 20,566 3,292 *TPOM – derived from 3 yrs average (i.e. from Jan 06 to Dec 08) RBPOM – actual figure from Feb 08 to Jan 09
2.0 Assessment Process
2.1 Assessment Methodology (Program, Site Visits)
The assessment for certification was carried out in two stages, namely Stage 1 and Stage 2. The Stage 1 assessment was conducted to determine the adequacy of the established documentation in addressing the requirements of RSPO MYNI: 2008, as well as to identify the relevant stakeholders. The Stage 1 assessment was conducted from 25th to 27th June 2009. It covered TPOM, RBPOM, Terusan 1 Estate, Terusan 2 Estate, Rumidi Estate and Ribubonus Estate. The findings from the Stage 1 assessment were used for planning of the Stage 2 assessment.
The Stage 2 assessment was conducted from the 01st to 05th October 2009. Its main objective was to verify comformance to RSPO MYNI: 2008. Planning for the Stage 2 assessment was guided by the RSPO Certification Systems Document. However, the sampling formula of 0.8√y was not used for determination of estates to be assessed for certification. Both mills and all the estates (Terusan 1 Estate, Terusan 2 Estate, Rumidi Estate and Ribubonus Estate) were assessed. The decision not to use the sampling formula was because there were significant issues in each of the estates which were different. For instance, the HCV areas were located within Terusan 2 and Ribubonus Estate, while community related matters occurred at Rumidi.
The assessment was conducted by visiting the fields, mills, HCV habitats, labour lines, chemical and waste storage areas and other workplaces. Interviews with management, employees, contractors and other relevant stakeholders were also conducted. Apart from that,
MSC/RSPO/DOC/06-02 9 Issue 1 Rev. 0 records as well as other related documentation were also evaluated. Details of the Stage 2 assessment programme are in Attachment 2.
The assessment findings were highlighted and discussed on site. There were five non- conformities raised against Terusan and Ribubonus. Both Terusan and Ribubonus have taken the necessary actions in closing the non-conformities. Evidences of corrective actions taken were submitted to the assessment team in stages. Details of the non-conformities reports and the corrective actions taken are detailed in Attachment 3.
2.2 Date of Next Surveillance Visit
The first surveillance audit will be conducted around twelve months from the date of the certification decision.
2.3 Assessment Team
Assessment Team Role/area of RSPO Qualification requirement Member of MYNI-WG Over 880 days of auditing experience, having audited to the following standards / requirements: ISO 14001 (over 50 days for palm oil milling & oil palm plantation), RSPO (over 50 days) & MS GAP-OP (20 days) Involved in Environmental Impact Assessment Studies related to agriculture including oil Assessment Team palm plantation. 1. Sabarinah Leader/ Completed RSPO Lead Assessor Course - Marzuky 2008 environmental issues Successfully completed IRCA accredited Lead Assessor training for ISO 9001-2008 Successfully completed IRCA accredited Lead Assessor training for OHSAS 18001-2005 Successfully completed EARA approved Lead Assessor training for ISO 14001-1999 M.E Civil Engineering (Environment) B.Sc. (Hons) Urban and Regional Planning
61 days of auditing experience, having audited to the FSC and MTCC (Forest Certification) 5 days of auditing experience in RSPO MY-NI: 2008 Committee member of Sarawak Development Assessor / Institute on minority indigenous group 2. Khoo Khay Jin community issues Associate, Socio-Economic & Environmental Research Institute (SERI), Pulau Pinang, Malaysia. M. Phil., Anthropology B. Sc. Mathematics
Consultancies
MSC/RSPO/DOC/06-02 10 Issue 1 Rev. 0 APEC-EPU study on preparing human resources for the new economy Master plan for the development of new villages in Peninsular Malaysia Feasibility and development plan study on the establishment of new rural growth centre in Sarawak Social Impact assessment in Malaysia Area development plan for Sukau resettlement, Sarawak
Research Inequality, human security and ethnicity (an International research project coordinated by Oxford University) Sarawak development indicator (funded by University Malaysia Sabah) Minority indigenous groups, Sarawak (collaboration with Sarawak Development Institute)
Over 340 days of auditing experience, having audited to the following: ISO 14001, FSC Forest Management requirements & RSPO 15 days of auditing experience in RSPO MY- NI: 2008 Completed RSPO Lead Assessor Course - 2008 Successfully completed EARA approved lead Assessor course for ISO 14001- 2001 Ph. D. (Forest Biology) under the University of Aberdeen (Scotland) and University of Malaya Fellowship in Tropical Rain Forest Project. B.Sc. Hons. Second Class Upper (Botany)
Professional Organizations: 3. Dr. Yap Son Assessor / HCV Member of the IUFRO Working Party on Kheong habitats & ecology Seed Problems. Nominated as one of the candidates for the Co-Chairman of Working Party in 1986. Project Leader for Project 8 of the Reproductive Biology of Tropical Trees of the ASEAN-Australian Tree Improvement Programme. 1986. Given the role to develop research activities on reproductive biology within ASEAN countries with sponsorship from Australia. Elected member of the Committee on Forest Tree and Shrub Seeds of the International Seed Testing Association. 1989 to 1992. Vice Chairman of the Working Group on Seed Origin and Genetic Resources of the ASEAN Canada Forest Tree Seed Centre.
MSC/RSPO/DOC/06-02 11 Issue 1 Rev. 0 1990 to 1995. Responsible in coordinating research activities on genetic resources within the ASEAN countries. Project leader on Impact of Acid Precipitation on Forest working in conjunction with researchers from China, Indonesia, Japan and Thailand. Over 650 days of auditing experience in OHSAS 18001 and MS 1722 OHSMS related to civil & construction, food industries, oil palm plantation (14 audit days), palm oil milling (80 audit days), electrical & electronic assembly plant and chemical industries Attended training on oil palm plantation Assessor / activities and issues related to Environmental 4. Azhar Mustapha Occupational safety & Occupational, Health and Safety - 2008 and health issues Successfully completed IRCA accredited Lead Assessor training for ISO 9001 – 2006 Passed Occupational Health Safety Managemnt (OHSMS) Lead Assessor Course (IRCA) - 2005 Attended Safety and Health Officer Course by NIOSH – 2002 B.Sc. (Hons) Civil Engineering Member of MYNI-WG Thirty one years experience in plantation management, covering rubber and oil palm 4 days of auditing experience in RSPO MY- NI: 2008
Working Experience: Plantation Advisor to Farmers‟ Association, Perak Technical Advisor to Bio-Industry Solution Sdn. Bhd. Involved in feasibility study of palm oil development of 20,000ha in Pekan Baru, Technical specialist Riau Indonesia 5. Hj Abd Aziz Abu on Good Agricultural Bakar Practices (GAP) and Head of Special Project (M) Kumpulan workers issues Guthrie Bhd.- to conduct independent assessment on GAP and estates cost management President Director of Minamas Plantation, Kumpulan Guthrie, Indonesia. – 2005 Official retirement Director of Management Information Services (MIS) & Knowledge Management of Kumpulan Guthrie Bhd - covering Malaysia and Indonesia plantations. Plantation Advisor and Quality Assurance, Kumpulan Guthrie Bhd. Estate Manager, Kumpulan Guthrie Bhd.
MSC/RSPO/DOC/06-02 12 Issue 1 Rev. 0 Plantation Advisor, Sime Darby Plantation Sdn. Bhd. Management Development Programme (MDP), Asian Institute of Management (AIM), Philippine. Diploma in Agriculture, Universiti Pertanian Malaysia.
2.4 Stakeholder Consultation
Stakeholder consultation was initiated with the announcement in the RSPO web site and SIRIM QAS web site on 01st September 2009. Apart from that, letters were also sent to relevant stakeholders, including government agencies and NGOs, and these were followed-up with telephone calls. Whenever the need arosed, meetings were arranged at the premises of NGOs and the relevant authority.
All enquiries received prior to the Stage 2 assessment were responded to, and for any comments made, consideration was given in the planning for the Stage 2 assessment.
Among the stakeholders consulted during the Stage 2 assessment were employees, government agencies, non-governmental organizations, local communities, FFB suppliers, contractors and its employees and other interested parties.
Consultation with the employees, FFB suppliers and contractors involved random sampling from each group in each of the areas (e.g. mill operators, harvesters, general workers and sprayers from the different estates). Each session lasted between 1 hour to 1½ hours. The consultations included issues relevant to principles 4, 5 and 6. The consultations were conducted in the Terusan and Ribubonus certification units.
The consultations with local communities were carried out at their premises/grounds. The sessions were carried out at times convenient to the stakeholders. The intention was to solicit their views on the impact of certification unit Terusan and Ribubonus on their economic and socio-cultural life.
The Terusan and Ribubonus management representatives were not present in any of the consultation sessions except with the local community. As such, the stakeholders were able to present their views in a frank and open manner.
Details of the stakeholders consulted are listed below:
Government Agencies/Service Providers/Asociation 1. Department of Occupational Safety & Health (DOSH), Sabah, Malaysia. 2. Department of Environment (DOE), (Kota Kinabalu Branch and Sandakan Branch), Sabah, Malaysia. 3. Labour Department, Sandakan, Sabah, Malaysia. 4. Agriculture Department (DOA), Kota Kinabalu & Sandakan Branch 5. Veterinary Department (Sandakan, Beluran and Telupid Branch) 6. Environment Protection Department, Sandakan and Kota Kinabalu, Sabah, Malaysia. 7. Forestry Department, Sandakan, Beluran and Telupid, Sabah, Malaysia. 8. Sabah Wildlife Department, Sandakan, Sabah, Malaysia. 9. Malaysian Palm Oil Board (MPOB), (Kota Kinabalu and Sandakan Branch), Sabah, Malaysia.
MSC/RSPO/DOC/06-02 13 Issue 1 Rev. 0 10. Immigration Department (Sandakan Branch), Sabah, Malaysia. 11. District Office, Beluran, Sabah, Malaysia. 12. Employee Providence Fund, Sandakan Branch, Sabah, Malaysia. 13. Social Security Organizations (PERKESO), Sabah, Malaysia. 14. Sabah Land Development Board (SLDB), Kota Kinabalu, Sabah, Malaysia. 15. Klinik Kesihatan Telupid, Telupid, Sabah, Malaysia. 16. Police Department (PDRM), Beluran and Telupid Branch, Sabah, Malaysia. 17. Fire Fighting and Rescue Department, Sandakan, Sabah, Malaysia. 18. Seri Pembangunan Senior Citizens House, Sandakan Sabah, Malaysia. 19. Port and Harbour Department, Sandakan, Sabah, Malaysia. 20. Sabah Marine Department, Sandakan, Sabah, Malaysia. 21. Custom Department, Sandakan, Sabah, Malaysia. 22. Secondary School; (Sekolah Menengah Bintang Mas and Sekolah Menegah Telupid), Sabah, Malaysia. 23. Primary School; (Sekolah Kebangsaan Bintang Mas and Sekolah Kebangsaan Telupid), Sabah, Malaysia.
Non-Governmental Organizations 1. Borneo Child Aid Society, Lahad Datu, Sabah 2. Sahabat Alam Malaysia, Marudi, Sarawak. 3. World Wildlife Fund for Nature (WWF), Malaysia. 4. Pesticide Action Network (PAN) Asia and Pacific, Malaysia. 5. Tenaganita, Kuala Lumpur, Malaysia. 6. Borneo Conservation Trust (BCT), Kota Kinabalu, Sabah, Malaysia. 7. Sawit Watch, Bogor, Indonesia. 8. Wetland International, Selangor, Malaysia. 9. Partners of Community Organizations (PACOS Trust), Sabah, Malaysia. 10. Aidenvironment, South East Asia. 11. The Hospice Association of Sandakan, Sabah, Malaysia. 12. Sabah Cheshire Home (Sandakan and Kota Kinabalu), Sabah, Malaysia. 13. Sabah Society for the Blind, Sandakan, Sabah, Malaysia. 14. Malaysian Palm Oil Association (MPOA), Sandakan, Sabah, Malaysia. 15. East Malaysia Planters‟ Association, Sandakan, Sabah, Malaysia. 16. The Sabah Employees Consultative Association (SECA) 17. Incorporated Society of Planters (ISP), Sandakan, Sabah, Malaysia.
Local Communities
Terusan certification unit: 1. Kampung Lubuk Dungun 2. Kampung Peranchangan 3. Kampung Lidong 4. Kampung Nangoh 5. Kampung Gana Jati
Ribubonus certification unit: 1. Kampung Baba 2. Kampung Ensuan 3. Kampung Gambaron 4. Kampung Gading 5. Kampung Wonod 6. Kampung Telupid (Batu 4)
MSC/RSPO/DOC/06-02 14 Issue 1 Rev. 0 Other Interested Parties 1. Terusan/Ribubonus Palm Oil Mill - canteen operator 2. Terusan/Ribubonus Palm Oil Mill - Workers‟ representative 3. Terusan/Ribubonus Estate - Workers‟ representative 4. Terusan Palm Oil Mill - FFB suppliers 5. Terusan/Ribubonus - Provision shop operator 6. Terusan/Ribubonus - Chairman of Women and Children Committee 7. Terusan/Ribubonus - Labour line contractor
3.0 Assessment Findings
The findings for the assessment are reported based on RSPO MYNI indicator.
PRINCIPLE 1: COMMITMENT TO TRANSPARENCY
Criterion 1.1: Oil palm growers and millers provide adequate information to other stakeholders on environmental, social and legal issues relevant to RSPO Criteria, in appropriate languages and forms to allow for effective participation in decision making.
Indicator 1.1.1: Records of requests and responses must be maintained. Major compliance
Guidance : Growers and millers should respond constructively and promptly to requests for information from stakeholders
Audit findings
Through stakeholder meetings, the Estates have communicated to neighbouring local communities/indigenous peoples and their own employees their intention to seek RSPO certification. This has been received positively.
The assessment team has also verified the records of communication with the neighbouring communities and government agencies such as Forestry Department and Environment Protection Department. Generally, it was found that responses to requests were done in a timely manner.
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.
This concerns management documents relating to environmental, social and legal issues that are relevant to compliance with RSPO Criteria. Documents that must be publicly available include, but are not necessarily limited to:- 1.2.1 Land titles / user rights (C 2.2) 1.2.2 Safety and health plan (C4.7) 1.2.3 Plans and impact assessments relating to environmental and social impacts (C 5.1, 6.1, 7.1, 7.3) 1.2.4 Pollution prevention plans (C 5.6) 1.2.5 Details of complaints and grievances (C 6.3) 1.2.6 Negotiation procedures (C 6.4) 1.2.7 Continuous improvement plan (C 8.1)
Guidance: Examples of commercially confidential information include financial data such as costs and income, and details relating to customers and/or suppliers. Data that affects personal privacy should also be confidential.
Examples of information where disclosure could result in potential negative environmental or social outcomes include information on sites of rare species where disclosure could increase the risk of hunting or capture for trade, or sacred sites, which a community wishes to maintain as private.
MSC/RSPO/DOC/06-02 15 Issue 1 Rev. 0 Audit findings
Terusan and Ribubonus have notified the stakeholders via letter of the requirement of C1.2. The documents that are made available for public viewing at the estate and mill offices are copies of land titles, licenses issued by authorities, company‟s annual report, monthly production records, area statement of estate, map of estates in relation to major rivers and villages, company policies, Safety and Health Plan, Safe and Standard Operation Procedures, Agriculture and Mill Standard Operating Procedure, organization chart of estate and mill management, air emission and effluent discharge reports and other documents permitted under company‟s communications policy.
Among the stakeholders informed were the Beluran and Telupid District Office, the Forestry Department, Agriculture Department, Department of Environment, Department of Occupational Safety & Health and surrounding schools and villages. Reply slips were enclosed to ensure receipt of the letter. However, as of the date of the assessment, no request for this type of information received by the two certification units.
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
Indicator 2.1.1: Evidence of compliance with legal requirement Major compliance
Indicator 2.1.2: A documented system, which includes written information on legal requirements. Minor compliance
Indicator 2.1.3: A mechanism for ensuring that they are implemented. Minor compliance
Indicator 2.1.4: A system for tracking any changes in the law. Minor compliance
Audit findings
Terusan and Ribubonus have established a documented system for the purpose of ensuring legal compliance. This included a documented procedure and written information on legal requirements. The procedure addressed the mechanism to identify related legal requirements and the method to track changes and for monitoring compliance. Terusan and Ribubonus have documented this method in a procedure (PPB/RSPO 2.1.4/(0)/0308 – System for Tracking Changes RSPO) and the assessor confirmed that this method was adequate.
The identified legal requirements applicable to Terusan and Ribubonus operation were recorded in the Register of Legal and Other Applicable Requirement. Among the identified legal requirements are the Occupational Safety and Health Act 1994, Factories and Machinery Act 1967, Fire Services Act 1988, Poisons Act 1952, Pesticides Act 1974 and Labour Ordinance of (Sabah Cap. 67) 1950.
Terusan and Ribubonus demonstrated their commitment to legal compliance by showing the record of compliance evaluation to the applicable legal requirements. Evidences such as quarterly reporting to DOE and required licences were available to support the evaluation.
It was confirmed that Terusan and Ribubonus have fulfilled the requirement for competent persons in accordance to the Factories and Machinery (Person-In-Charge) Regulations 1970. It was noted that the all the mill engineers in both mills possessed competency certificates for Second Grade Steam Engineer. The Electrical Chargemen and Engine Drivers also possessed the necessary qualification on all the shifts as required by the regulations.
MSC/RSPO/DOC/06-02 16 Issue 1 Rev. 0 The DOSH inspection has been conducted on regular basis as per {Notification, Certificate of Fitness and Inspection} Regulations 1970). The inspection findings were reflected in the DOSH log book kept at the mills. Other evidence of compliance verified was related to the issuance and acceptance of Personal Protective Equipment (PPE).
However, stakeholder consultation with the Sandakan Fire and Rescue Department (BOMBA) revealed that TPOM had already sent their application for Fire Certificate but was pending approval as some of the requirements were yet to be fulfilled. Verification during the assessment showed that, Terusan Palm Oil Mill had rectified the matters highlighted and awaiting inspection from BOMBA.
In the same consultation, BOMBA had also informed that RBPOM had not submitted their application for Fire Certificate. This was confirmed during the assessment and hence, non-compliance was raised against section 28 & 29 of Fire Services Act 1988. (NCR AM2). Ribubonus Palm Oil Mill had taken the corrective action by submitting the application to Fire and Rescue Department, Sandakan on 10th October 2009. The department had received and responded to their application. During the assessment, the assessors had verified that the fire extinguishers were in workable condition through their monthly checking records and site observation. The accessibility of their exits and entrances were also sufficient and well maintained.
Apart from the above, there were areas of concern where improvements were needed related to employees audiometric tests and health surveillance. Terusan and Ribubonus needs to ensure all affected employees who worked at noisy areas and in laboratory undergo these tests. Apart from that, Terusan and Ribubonus also need to conduct its workplace inspection covering all areas within the estates and mills at least once in three months and maintain the records. Nevertheless, consultation with DOSH revealed that they have no issue with the two certification units.
Related to the above, the assessor has subsequently verified the compliance to Factories and Machinery (Noise Exposure) Regulations. Relevant records were sighted such as noise mapping report, training programme and training record were available and maintained. The audiometric test was conducted on 28 May 2009. The baseline audiogram and medical history record were available and kept in the office. The audiometric test was conducted in batches according to priority. Those who were exposed to excessive noise were tested accordingly. There were some employees who had undergone the test. Evidence was seen on Audiometric Test Report, dated 20/6/09 from an authorised panel clinic. There were 10 employees involved in the test who had hearing impairment. They were from various job locations such as boiler, kernel plant, oil room, engine driver and press operator. A copy of the report had also been sent to the DOSH. The assessors also confirmed that the audiometric test records were maintained as required by Regulation 30 of the regulations.
The hearing conservation programme is done via yearly audiometric test and through training. The training was conducted in-conjunction with PPE usage training. The training schedule for the year 2010 was also available. The assessor confirmed the availability of the training records.
In the context of the forestry/plantation sector, Terusan and Ribubonus are exemplary in being in compliance with paid public holidays, paid annual leave, sick leave and maternity leave. However, improvement needed relating to guaranteed work week requirement (cross refer to C 6.5.2).
The assessment team has also verified that Terusan & Ribubonus certification units have complied with the relevant forestry laws by having clear boundary demarcation with the forest reserves bordering their estates. It has also followed the specifications of the Sabah Water Resources Enactment, 1998 requirement on riparian boundary.
Consultation with Sabah Environment Protection Department revealed that Ribubonus has conducted EIA for their establishment.
Criterion 2.2: The right to use the land can be demonstrated, and is not legitimately contested by local communities with
MSC/RSPO/DOC/06-02 17 Issue 1 Rev. 0 demonstrable rights.
Indicator 2.2.1: Evidence of legal ownership of the land including history of land tenure. Major compliance
Indicator 2.2.2: Growers must show that they comply with the terms of the land title. [This indicator is to be read with Guidance 2] Major compliance
Indicator 2.2.3: Evidence that boundary stones along the perimeter adjacent to state land and other reserves are being located and visibly maintained. Minor compliance
Specific Guidance: Growers should attempt to comply with the above indicator within 15 months from date of announcement of first audit. Refer to State Land Office for examples of other reserves.
Indicator 2.2.4: Where there are, or have been, disputes, proof of resolution or progress towards resolution by conflict resolution processes acceptable to all parties are implemented. CF 2.3.3, 6.4.1 and 6.4.2. Minor compliance
Guidance: 1. For any conflict or dispute over the land, the extent of the disputed area should be mapped out in a participatory way. 2. Where there is a conflict to the condition of land use as per land title, growers must show evidence that necessary action has been taken to resolve the conflict with the relevant authorities. 3. Ensure a mechanism to solve the dispute (Refer to C 6.3 and C6.4) 4. Evidence must be demonstrated that the dispute has been resolved. 5. All operations shall cease on land planted beyond the legal boundary.
Audit findings
Terusan and Ribubonus Estates were established over a period of about 20 years upto the most recent, 9 years ago. In both instances, this was accomplished through acquisition of properties from previous owners who had obtained ownership through grants from the state of Sabah and, where applicable, converting the existing area to oil palm cultivation.
Terusan and Ribubonus have a 99 year lease on the land from the Sabah State government. They have the relevant evidence of legal ownership. Copies of land titles were available and it was also evident that they were complying with the terms of the land title.
However, there was a legacy dispute covering 57 hectares in Terusan Estate dating from the time of transfer of ownership from the Sabah Land Development Board (SLDB). The dispute was due to promises made by SLDB to the neighbouring community of Kampung Peranchangan, Kampung Nangoh and Kampung Gana Pati regarding their current settlement. The grant/title for this land is linked to the land sold to PPBOP (Terusan Estate) and no separate titles were issued.
Terusan Estate acknowledged the existence of the communities and never infringes the land. While preparing for the RSPO certification, Terusan Estate revisits their legal compliance and hence, this matter was acted upon.
Maps demarcating this area and documentation were available. At the time of audit, through a series of consultations as seen in the meeting minutes, the dispute had been amicably resolved, with the matter referred to the relevant authorities for excision and grant of title to the claimants from the local communities (letter to relevant authorities sighted). However, a recommendation from the in-house High Conservation Value Assessment (HCVA) that the referring maps be updated to indicate the new status was not followed through.
The assessment also uncovered a potential land dispute over Ribubonus Estate. The potential claimants are communities from Kampung Telupid Batu 4 and Kampung Gading. Although the potential claimants have registered a broad unspecified interest (Figure 1), they were still in the process of establishing their claim, which is gathering evidence on it and had not communicated it to Ribubonus
MSC/RSPO/DOC/06-02 18 Issue 1 Rev. 0 Estate.
For its part, Ribubonus Estate is open to considering the claim should it turn out to cover any part of the estate. A discussion with an advisor to the potential claimants also indicated that they too, were open to negotiations and discussions should the claim cover any part of the estate. The advisor is representative from JOAS and PACOS. As matters now stand, the claim is a broad but indeterminate statement of intent. Cross refer C2.3, C6.3 and C6.4.
During the assessment site visits, it was noted that there is no infringement of forest reserve in all the estates. A working relationship on the boundary marking has been established with the Sabah Forestry Department. This has resulted in clear boundary markings especially in Ribubonus Estate. Consultation with the Sabah Forestry Department revealed that they have no negative comments on the operations of Terusan and Ribubonus.
However, during the exercise of locating the boundary stone, Terusan and Ribubonus found out that there has been over planting in Terusan Estate bordering the riparian zone. Appropriate action in delineating these sites with red paint marking has been done and it was noted that no field upkeep activities are being conducted within these excluded sites. During the site inspection conducted in Ribubonus Estate, 3 sets of marker stones were examined at the boundary, while in Terusan Estate, the perimeter road was used to demarcate the boundary.
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Fig 1: Memorandum of Native Customary Rights Claim submitted to the State Government
Criterion 2.3: Use of the land for oil palm does not diminish the legal rights, or customary rights, of other users, without their free, prior and informed consent.
Indicator 2.3.1: Where lands are encumbered by customary rights, participatory mapping should be conducted to construct maps that show the extent of these rights. Major compliance
Indicator 2.3.2: Map of appropriate scale showing extent of claims under dispute. Major compliance
Indicator 2.3.3: Copies of negotiated agreements detailing process of consent (C2.2, 7.5 and 7.6). Minor compliance
Guidance: Where lands are encumbered by legal or customary rights, the grower must demonstrate that these rights are understood and are not being threatened or reduced. This criterion should be considered in conjunction with Criteria 6.4, 7.5 and 7.6.
Where customary rights areas are unclear these are best established through participatory mapping exercises involving affected and neighbouring communities.
This criterion allows for sales and negotiated agreements to compensate other users for lost benefits and/or relinquished rights. Negotiated agreements should be non-coercive and entered into voluntarily, carried out prior to new investments or operations and
MSC/RSPO/DOC/06-02 20 Issue 1 Rev. 0 based on an open sharing of all relevant information in appropriate forms and languages, including assessments of impacts, proposed benefit sharing and legal arrangements.
Communities must be permitted to seek legal counsel if they so choose. Communities must be represented through institutions or representatives of their own choosing, operating transparently and in open communication with other community members. Adequate time must be given for customary decision-making and iterative negotiations allowed for, where requested. Negotiated agreements should be binding on all parties and enforceable in the courts. Establishing certainty in land negotiations is of long-term benefit for all parties.
Audit findings
With regards to assessment finding C2.2, the Terusan dispute did not involve customary rights. Rather, it resulted from an understanding with the SLDB. The only instance of customary rights within Terusan Estate is a burial site which has been duly demarcated and mapped.
Whereas for the case of Ribubonus, it is still unclear of the customary rights claim on Ribubonus Estate.
PRINCIPLE 3: COMMITMENT TO LONG-TERM ECONOMIC AND FINANCIAL VIABILITY
Criterion 3.1: There is an implemented management plan that aims to achieve long-term economic and financial viability.
Indicator 3.1.1 : Annual budget with a minimum 2 years of projection Major compliance
Specific Guidance: Annual budget may include FFB yield/ha, OER, CPO yield/ha and cost of production that is not required to be publicly available.
Indicator 3.1.2: Annual replanting programme projected for a minimum of 5 years with yearly review. Minor compliance
Audit findings
Documented budget for Financial Year 2009 and 2010 for both certification units were available which generally covered the provision of allocation for operations, maintenance and social services such as upgrading of workers quarters and other amenities. At Ribubonus, the budget had also included construction of a new water treatment plant and workers quarters. Apart from that, the budget also had included information on FFB yield/ha, OER and production cost.
Discussion with top management revealed that the allocation for an additional pond at RBPOM for the purpose of ensuring legal compliance with regards to effluent discharge has been provide for.
However, as part of the continual improvement plans, enhancement was needed to ensure that there is a budget or allocation to cover the plan for the conservation area and management of riparian zone. It was noted that replanting programmes would only start in 2013. However, Ribubonus is developing 18 ha of oil palm plantation next to the mill. This area was previously felled during initial land development and originally meant for mill‟s expansion. As the need has not arisen, the management has decided to plant the area.
PRINCIPLE 4: USE OF APPROPRIATE BEST PRACTICES BY GROWERS AND MILLERS
Criterion 4.1: Operating procedures are appropriately documented and consistently implemented and monitored.
Indicator 4.1.1: Documented Standard Operating Procedures (SOP) for estates and mills Major compliance
MSC/RSPO/DOC/06-02 21 Issue 1 Rev. 0 Indicator 4.1.2: Records of monitoring and the actions taken are maintained and kept for a minimum of 12 months. Minor compliance
Audit findings
Documented procedures for the estates and mills‟ operation have been established in both certification units. The Agriculture Manual and Mill Operation Manual have been in existence since the 1990‟s. In 2007 both manuals were revised to address current practices. Apart from that, Safe and Standard Operating Procedures (SSOP) were also established in 2007. These are part of the Safety and Health Manual.
Among the operations included in their Agricultural Manual are oil palm nursery, oil palm replanting, field upkeep and FFB harvesting and evacuation. As for the mill, Standard Operating Procedures (SOPs) relating to palm oil processing, boiler operation, effluent treatment plant, products analysis method, workshop activity and chemical and waste handling procedure were established and implemented accordingly. However, a non-conformity was raised due to the absence of SSOP for working in confined space (e.g. boiler service and cleaning of CPO storage tank) (NCR AM 02).
As part of the means to communicate the information, the manual and procedures were distributed to all levels of Executives for their reference. Briefings had also been conducted to all relevant employees. SOPs were also posted at the muster ground notice board and other operational locations. Interviews with workers and staff revealed that the level of understanding towards the requirements of the manual and SOPs were satisfactory.
The assessment team verified at site and sighted relevant records on monitoring of the SOPs implementation. Among the records sighted were manuring and spraying programmes, agrochemicals usage, vehicle logbook, hazard and risk assessment report and chemical hazard assessment.
For the mill, operation records such as, oil and kernel losses, downtime, throughput, oil and kernel extraction rate, machine operation hours were available and maintained accordingly.
Apart from the above, it was noted that buffalo-assisted infield-collection (BAIC) was being practiced in Terusan Estate. However, the infrastructure for BAIC needed to be enhanced, especially in the low lying areas. A procedure for the infrastructure preparation would be of help in ensuring its consistency and mitigation to reduce rutting of the harvesting path in the fields. It was also noted that, Terusan Estate has monitored the condition of buffalos. However, the records on health profile of the buffalos were not well maintained. The last record sighted was a Veterinary Department‟s letter of intent to carry out a vaccination programme in 2008 and no programme was carried out in 2009. It was also noted that there was no programme on de-worming.
In Rumidi, there is an area for the “Buffalo-Breeding” programme, with the sex ratio of one bull to 49 female buffalos. This situation could be reviewed in terms of whether this is the normal practice in oil palm areas with this “Buffalo Breeding” programmes.
Another enhancement needed in view of buffalos grazing in the fields were the signages indicating the notification of “Rear Entry Interval” after spraying.
Criterion 4.2: Practices maintain soil fertility at, or where possible improve soil fertility to, a level that ensures optimal and sustained yield. MY-NIWG recommends that the indicators in criterion 4.2 and 4.3 are linked
Indicator 4.2.1: Monitoring of fertilizer inputs through annual fertilizer recommendations. Minor compliance
Indicator 4.2.2: Evidence of periodic tissue and soil sampling to monitor changes in nutrient status. Minor compliance
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Indicator 4.2.3: Monitor the area on which EFB, POME and zero-burn replanting is applied. Minor compliance
Audit findings
In order to ensure soil fertility, Terusan and Ribubonus have adopted many best practises. The main reference is the manuring recommendation made by own research centre called Eco-Management Unit through the leaf sampling which was carried out annually. Site assessment and records verification revealed that fertilizers application were made as per the recommendation.
Terusan and Ribubonus are also applying EFB in accordance with the recommendation from the leaf sampling result. The recommended rate of application is 80 ton/ha and placed in between the palms. During the on-site assessment, it was noted that the EFB was applied along the palm rows from the heaps of EFB which were placed by the roadside for quite some times. This practice of prolonged heaping of EFB should not be encouraged as it would be a good breeding place for beetles.
Fig 2: EFB Application along the rows Fig 3: Heap of EFB pending for application
Criterion 4.3: Practices minimise and control erosion and degradation of soils.
Indicator 4.3.1; Documented evidence of practices minimizing soil erosion and degradation (including maps). Minor compliance
Specific Guidance: Replanting on sloping land must be in compliance with MSGAP Part 2: OP (4.4.2.2)
For Sarawak, steep slopes are considered high risk erosion areas and cannot undergo replanting unless specified in the EIA report and approved by the Natural Resources and Environment Board (NREB).
For Sabah, slopes 25 degree and steeper are considered high risk erosion areas and cannot undergo replanting unless specified in the EIA report [Environment Protection (Prescribed Activities)(Environment Impact Assessment) Order 2005] and approved by the Environmental Protection Department (EPD).
Slope determination methodology (slope analysis) should be based on average slope using topographic maps or topographical surveys.
Indicator 4.3.2: Avoid or minimize bare or exposed soil within estates. Minor compliance
Specific Guidance: Appropriate conservation practices should be adopted.
Indicator 4.3.3: Presence of road maintenance programme. Minor compliance
Indicator 4.3.4 : Subsidence of peat soils should be minimised through an effective and documented water management programme Minor compliance
Specific Guidance: Maintaining water table at a mean of 60 cm (within a range of 50-75cm) below ground surface through a network of weirs, sandbags,
MSC/RSPO/DOC/06-02 23 Issue 1 Rev. 0 etc. in fields and watergates at the discharge points of main drains.
Indicator 4.3.5: Best management practices should be in place for other fragile and problem soils (e.g. sandy, low organic matter and acid sulphate soils). Minor compliance
Guidance: Techniques that minimise soil erosion are well-known and should be adopted, wherever appropriate. These may include practices such as: 1. Expediting establishment of ground cover upon completion of land preparation for new replant. 2. Maximizing palm biomass retention/ recycling. 3. Maintaining good non-competitive ground covers in mature areas. 4. Encouraging the establishment/regeneration of non-competitive vegetation to avoid bare ground. 5. Construction of conservation terraces for slopes >15o 6. Advocating proper frond heap stacking such as contour/L-shaped stacking. For straight line planting and stacking along the terrace edges for terrace planting. 7. Appropriate road design and regular maintenance. 8. Diversion of water runoff from the field roads into terraces or silt pits. 9. Construction of stop bunds to retain water within the terrace. 10. Maintaining and restoring riparian areas in order to minimize erosion of stream and river banks.
Audit findings
Site assessment as well as records verification showed that Ribubonus (Central Division) was implementing practices that minimized soil erosion on the 18 ha of new planting. Among the practices were maintaining natural vegetation i.e. soft grasses and Neprolepis biserrata, and cover crop such as Mucuna bracteata.
Fig 4: Mucuna planting Fig 5: EFB mulching around palm
Apart from the above, natural vegetation was observed at tall palm and hilly areas while cover crop was planted along the road side and in young palm area.
Biomass recycling such as mulching of EFB and frond stacking were also applied. Diversion of surface water runoff from the field roads into silt pits was implemented at certain areas.
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Fig 6: Roadside drain Fig 7: Silt pit to prevent surface run off
A detailed map on slopes of different gradients was presented during the inspection at Rumidi and Ribubonus. Areas above 25 degrees were demarcated.
Terusan and Ribubonus have also established a road maintenance programme and the road conditions were found to be generally satisfactory, except for some areas also in Rumidi Estate which were water-logged resulting in deep gullies. This could be enhanced through maintenance of side drains to channel water away from the road surface.
Criterion 4.4: Practices maintain the quality and availability of surface and ground water.
Indicator 4.4.1: Protection of water courses and wetlands, including maintaining and restoring appropriate riparian buffer zones at or before replanting along all natural waterways within the estate. Major compliance
Specific Guidance: Riparian buffer zones: Reference to be made to relevant national regulations or guidelines from state authorities e.g. Department of Irrigation and Drainage (DID), whichever is more stringent.
Indicator 4.4.2: No construction of bunds/weirs/dams across the main rivers or waterways passing through an estate. Major compliance
Indicator 4.4.3: Outgoing water into main natural waterways should be monitored at a frequency that reflects the estates and mills current activities which may have negative impacts (Cross reference to 5.1 and 8.1). Major compliance
Indicator 4.4.4 : Monitoring rainfall data for proper water management Minor compliance
Indicator 4.4.5: Monitoring of water usage in mills (tonnage water use/tonne FFB processed). Minor compliance
Specific Guidance : Data trended where possible over 3 years to look into resource utilization
Indicator 4.4.6: Water drainage into protected areas is avoided wherever possible. Appropriate mitigating measures will be implemented following consultation with relevant stakeholders. Minor compliance
Indicator 4.4.7: Evidence of water management plans. Minor compliance
Audit findings
Terusan and Ribubonus have SOPs on establishment and management of riparian zones which included the parameter required by the Sabah Water Resources Enactment, 1998 on the width of river
MSC/RSPO/DOC/06-02 25 Issue 1 Rev. 0 reserves. Riparian Reserve Maps were also prepared for each estate for easy reference.
Riparian belts along the major rivers and streams were demarcated with appropriate signages and markings on the trunk of the oil palm in the estates inspected. For other smaller streams, the demarcation process is ongoing.
It was noted that all human activities had also been excluded from these belts. Interviews with workers revealed that no field upkeep works were carried out within the riparian zone (marked and identified on the map).
It was also noted that during site assessment, no dams across main rivers or waterways were constructed in the estates. However, construction of bunds/weirs across the drainage canals to prevent inflow of brackish water from Sungai Sapi into Terusan estate was observed. There was a structured system of main, collection and fields drains. The control of water level was through weirs and gate valves. Water level was constantly maintained at 45 – 60 cm level below ground surface. The system was observed at Field 40 and 41 next to the River Bangau-Bangau. At time of the visit, desilting of in- fields drains was being carried out.
Fig 8: River Bangau-Bangau Fig 9: Control water Level with weir Fig 10: In-field drain
As part of their commitment to prevention of pollution, both Terusan and Ribubonus certification units had conducted a series of water sampling. Results of the sampling were available. Seven sampling points were established along the main rivers in Ribubonus. Whereas for Terusan, ten sampling points were established. Further improvements could be made by looking into the next course of action after reviewing the result.
For the mills, measurements on the effluent treatment plant (ETP) discharges were conducted on a monthly basis. Assessment on TPOM discharges records revealed that they were complying with their licensed condition with discharging effluent with 100ppm BOD and the current licence has stipulated that the discharges should be into land irrigation.
During site assessment at Terusan 2 Estate, overflow of POME from land irrigation activities was noted. This newly introduced activity has not fully established its monitoring and mitigating measures. Nonconformity was raised on this matter (NCR SM 2).
In responding to the nonconformity raised, TPOM has established SOP on land irrigation operation. Verification through photos (Fig. 11) showed that this activity is conducted in accordance to their procedure.
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Fig 11: Land irrigation trench in Terusan 2 (Block 16) which has been improved in accordance to their SOP
At RBPOM, assessment on the sampling results for the river showed that high COD and BOD was recorded at one of the sampling point (Point no. 2). This point received discharges from RBPOM. Apart from that, consultation with DOE revealed that the mill occasionally discharge treated wastewater that exceeded the limit specified by the authority. It was noted that during the assessment, Ribubonus Mill has taken action to rectify this situation by adding six new ponds to the current ETP system. This would help in extending the retention time and hence, enable to lower the BOD and COD level. Construction works were ongoing. However,it was noted that while the works were ongoing, the discharges still occurred . Nonconformity was raised on this matter (NCR SM 2).
As part of the corrective action, Ribubonus had expedited the completion of the ponds construction and had its pre-commision with DOE Officers presence on 11th November 2009. The filling up of the six new ponds would enable no discharge through the final discharge point until first quarter of 2010. On top of the above, aerators and mixers were also provided in the existing ponds with the aim of increasing the treatment efficiency.
Despite the above lapses, both certification units are committed to sustainable use of water. The mills and estates are monitoring the rainfall data as well as their water consumption as required by RSPO criteria & indicator.
Almost all houses are provided with dual sources of water supply- treated water from river and rain water harvesting. These were part of the water management plans. However, the documented water management plan only emphasised on the best practice of water usage.
Criterion 4.5: Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate Integrated Pest Management (IPM) techniques.
Indicator 4.5.1: Documented IPM system. Minor compliance
Indicator 4.5.2: Monitoring extent of IPM implementation for major pests. Minor compliance
Specific Guidance: Major pests include leaf eating caterpillars, rhinoceros beetle and rats.
Indicator 4.5.3: Recording areas where pesticides have been used. Minor compliance
MSC/RSPO/DOC/06-02 27 Issue 1 Rev. 0 Indicator 4.5.4: Monitoring of pesticide usage units per hectare or per ton crop e.g. total quantity of active ingredient (ai) used / tonne of oil. Minor compliance
Guidance: Growers should apply recognised IPM techniques, incorporating cultural, biological, mechanical or physical methods to minimise use of chemicals. Native species should be used in biological control wherever possible.
Audit findings
Guided by their documented Agricultural Manual and SSOP, Terusan and Ribubonus Estates are practicing IPM specifically for controlling leaf eating caterpillar by the planting of beneficial plants such as Antigonon leptopus, Cassia cobanensis and Tunera sp especially along the main roads. As there has been no record of any serious pest outbreak, no other IPM techniques that have been implemented. It was noted that rat bait stocks were kept in the locked chemical store for site specific damage control.
Records of pesticide usage including active ingredients, areas treated, amount applied per hectare and the number of applications were well maintained and updated by all the estates.
Criterion 4.6: Agrochemicals are used in a way that does not endanger health or the environment. There is no prophylactic use of pesticides, except in specific situations identified in national Best Practice guidelines. Where agrochemicals are used that are categorised as World Health Organisation Type 1A or 1B, or are listed by the Stockholm or Rotterdam Conventions, growers are actively seeking to identify alternatives, and this is documented.
Indicator 4.6.1: Written justification in Standard Operating Procedures (SOP) of all Agrochemicals use. Major compliance
Indicator 4.6.2: 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). Major compliance
Specific Guidance: Reference shall also be made to CHRA (Chemical Health Risk Assessment)
Indicator 4.6.3: Pesticides shall be stored in accordance to the Occupational Safety and Health Act 1994 (Act 514) and Regulations and Orders and Pesticides Act 1974 (Act 149) and Regulations. Major compliance
Specific guidance: Unless participating in established recycling programmes or with expressed permission from the authorities, triple rinsed containers shall be pierced to prevent misuse. Disposal or destruction of containers shall be in accordance with the Pesticide Act 1974 (Act 149) and Environmental Quality Act 1974 (Scheduled Wastes) Regulations 2005.
Indicator 4.6.4: All information regarding the chemicals and its usage, hazards, trade and generic names must be available in language understood by workers or explained carefully to them by a plantation management official at operating unit level. Major compliance
Indicator 4.6.5: Annual medical surveillance as per CHRA for plantation pesticide operators. Major compliance
Indicator 4.6.6: No work with pesticides for confirmed pregnant and breast-feeding women. Major compliance
Indicator 4.6.7: Documentary evidence that use of chemicals categorised as World Health Organization Type 1A or 1B, or listed by the Stockholm or Rotterdam Conventions and paraquat, is reduced and/or eliminated. Adoption of suitable economic alternative to paraquat as suggested by the EB pending outcome of the RSPO study on IWM. Minor compliance
Indicator 4.6.8: Documented justification of any aerial application of agrochemicals. No aerial spraying unless approved by relevant authorities. Major compliance
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Indicator 4.6.9: Evidence of chemical residues in CPO testing, as requested and conducted by the buyers. Minor compliance
Indicator 4.6.10: Records of pesticide use (including active ingredients used, area treated, amount applied per ha and number of applications) are maintained for either a minimum of 5 years or starting November 2007. Minor compliance
Audit findings
Only chemicals that are registered under the Pesticide Act 1974 were used in both certification units, which were mainly in the class III category. The main chemicals were herbicides such as Roundup, Starane, Amine, Garlon and Basta. Usage of Paraquat is not allowed in the estates. Other agrochemicals in the store were rat bait and insecticides. The storage of these chemicals was found to be in accordance with the related legal requirements. The store was locked and only authorised personnel are allowed to attend it. The appropriate PPE for handling these chemicals were also available at the point of use.
Terusan and Ribubonus have provided written justification for all the agrochemicals used in the Agriculture Manual and SOPs for the estates. These documentations include a chemical register list which indicates the purpose of chemical usage (intended target), hazards signage, trade and generic names.
Interview with the chemical storekeeper revealed that he understood the hazards involved and the required control measures. Records of the purchase, storage and use of agrochemicals were properly documented in the Estate Stock Record System. All empty chemical containers were rinsed with the recommended procedure (triple rinsing) to minimise the chemical hazard. If not required for other use in the field, they were pierced to prevent misuse. Disposal or destruction of empty chemical containers was found to be in accordance with legal requirements.
Terusan and Ribubonus have a programme for medical check-up for their personnel and workers whose job required frequent exposure to chemicals such as the storekeeper and sprayers. The medical check-up was conducted by the Estate Hospital Assistant (EHA). The surveillance reports showed that all the sprayers were healthy and suffered no detrimental effects as a result of their job. In addition to the above, all the sprayers had also undergone annual medical surveillance carried out by certified Occupational Health Doctor. The results so far showed that all of the workers were fit to work.
Terusan and Ribubonus had also adopted a policy on restricting pregnant women from working with pesticides. Interviews with the female sprayers confirmed that they were aware of this policy. This was confirmed by the EHA through the monthly physical medical check up.
Aerial application of agrochemicals is not a practice in PPBOP, and to date, there has been no request from buyers to test for chemical residue in the CPO.
Criterion 4.7: An occupational health and safety plan is documented, effectively communicated and implemented
Indicator 4.7.1: Evidence of documented Occupational Safety Health (OSH) plan which is in compliance with OSH Act 1994 and Factories and Machinery Act 1967(Act139). Major compliance
The safety and health (OSH) plan shall cover the following: a. A safety and health policy, which is communicated and implemented. b. All operations have been risk assessed and documented. c. An awareness and training programme which includes the following specifics for pesticides: i. To ensure all workers involved have been adequately trained in a safe working practices ( See also C4.8) ii. All precautions attached to products should be properly observed and applied to the workers. d. The appropriate personal protective equipment (PPE) are used for each risk assessed operation.
MSC/RSPO/DOC/06-02 29 Issue 1 Rev. 0 i. Companies to provide the appropriate PPE at the place of work to cover all potentially hazardous operations such as pesticide application, land preparation, harvesting and if used, burning. e. The responsible person(s) should be identified. f. There are records of regular meetings between the responsible person(s) and workers where concerns of workers about health and safety are discussed. g. Accident and emergency procedures should exist and instructions should be clearly understood by all workers. h. Workers trained in First Aid should be present in both field and mill operations. i. First Aid equipment should be available at worksites.
Indicator 4.7.2: Records should be kept of all accidents and periodically reviewed at quarterly intervals. Major compliance
Specific Guidance: Record of safety performance is monitored through Lost Time Accident (LTA) rate.
Indicator 4.7.3: Workers should be covered by accident insurance. Major compliance
Audit findings
Terusan and Ribubonus have adopted PPB‟s Occupational Safety and Health policy, plan and programme. The plan was documented, communicated and implemented at all levels of the organization. Hazard identification, risk assessment and risk control (HIRARC) records, as well as CHRA records were verified during the assessment.
The HIRARC carried out covered activities in the estates and mill. Among the activities identified were chemical mixing and spraying, harvesting and FFB evacuation in the estates. Although Terusan and Ribubonus do not use any highly toxic pesticides,but as a safety precaution, they still adopted the requirement under Regulation 9 of Pesticides (Highly Toxic Pesticides) Regulation 1996 on keeping all remaining solution under lock and key in the stores. For the mill, the identified activities were FFB sterilization, kernel and oil extraction and, clarification among others.
Based on the risk assessment, Terusan and Ribubonus have identified significant hazards and risks and determined appropriate risk control measures. Improvement is required where the HIRARC need to be reviewed from time to time. It was also noted that for certain activities such as working in confined space (boilers and CPO storage tanks), harvesting in hilly areas (where terraces are very narrow) and housing construction, the HIRARC were not adequately conducted.
Evidence of implementation of appropriate risk control measures was observed during the field and mill assessment. For example, machines which have moving parts were well guarded and employees that had been provided with appropriate PPE were seen to be using it.
There were a few other areas of concern where improvement is needed. It was observed, that the practice of transporting of FFB using lorries in Terusan Estate could be enhanced to prevent falling of FFB and hence ensure safety in carrying the job. In Rumidi, the practice of loading and unloading of FFB at field ramp could be enhanced to ensure the safety of operators in carrying the job. The ramp was of wooden structure and thus, required more safety features to be included. There was no specific policy for transport but SOP for vehicle maintenance is available to ensure all vehicles are in good working condition. All the company vehicles such as lorries, van and pick-ups were licensed. The update status is closely monitored by the administration department. In order to transport workers to the worksites, Terusan and Ribubonus have provided special vehicles which were fitted with safety features as shown in Figure 12.
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Fig 12: Special vehicle to transport workers to the worksites.
In order to ensure the drivers competency, all the drivers possess valid driving license. As for the drivers who ferried passengers, they have Public Service Vehicle (PSV), while those who carried goods, they have Goods Driver‟s License (GDL). Apart from that, all drivers were also trained to be competent drivers. The last training was conducted on 14/5/2009. The training covered the road safety aspects, driving skills and regular check-up on the condition of the vehicle. The assessors confirmed that training records were documented and filed appropriately. All tractors used for operation are fitted with anti-roll bars (Figure 13).
Fig 13: All tractors are fitted with anti-roll bars
For residents in the estates, awareness programs were through briefings, road blocks, signage (Figure 14) and campaign posters. It was also one of the OSH committee meeting agenda. During the assessment, it was observed that staff and workers were wearing helmets while riding motorcycle, which means safety requirements were effectively communicated. The speed limit imposed to the estate roads users was 40 km/hr. The assessors observed sufficient speed limit signage erected in the strategic places along the roads.
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Fig 14: Signage to remind all and sundry on safety precautions while on the roads.
Terusan and Ribubonus also have a mechanism to ensure all transportation contractors comply with the applicable legal requirement. In the contract agreement between the company and the contractors that was signed and shown to the assessor, one of the pre-condition was to require all contractors to comply with any relevant legal requirements. Among the acts were Occupational Safety and Health Act 1994, Factories and Machinery Act 1967 and Road Transport Act 1987. A yearly assessment was done to ensure the contractors abide with the condition stated inside the contract and agreement.
Fig 15: Wooden loading ramp in Rumidi Estate
PPEs that were commonly used were safety boots, helmets, goggles, ear plugs, rubber and cotton gloves, aprons and breathing masks. Those who handled chemicals were trained on the PPE usage. During the site assessment, it was observed that signage (to remind workers of wearing appropriate PPE) were placed at the appropriate places. As mentioned earlier, Terusan and Ribubonus do not use any highly toxic pesticides (Paraquat and its mixture, Monocrotophos, Calcium Cyanide or Methamidophos) which are listed in the 1st Schedule in the Pesticides Regulation. However, “WARNING” notices were still displayed in areas like pesticides store and field where pesticides have been applied, for safety concern (Figure 16).
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Fig 16: Warning signage in the field and chemical store.
Nevertheless, further improvement could be made for workers handling powdered fertilizers especially for those who handle rock phosphate. Face masks and goggles could be extended to them as given to other workers handling other types of powdered fertilizers.
During site assessment at Rumidi and Ribubonus (Eastern Division) Estates, it was noted that the manuring workers were not using apron as part of their PPE. Fertiliser applied was observed to be sticking on the body around the neck areas and could cause irritation and abrasion.
Fig 17: Skin exposed to fertilizer
Terusan and Ribubonus have provided facilities for various types of emergencies. At each mill, there was an „Emergency Room‟ equipped with basic facilities such as stretcher, First Aid kit, emergency eye wash and shower station were provided. The fire extinguishers and water hose reels were available at strategic locations such as at the production areas, workshops, stores and offices. Inspection of these extinguishers were conducted on a monthly basis and recorded accordingly. The assessor confirmed by checking some of the fire extinguishers expiry date, nozzles and pressure gauge, they were in good condition to be used. In addition, the emergency response team has been established. It is recommended that emergency drills be conducted periodically as to enhance the skill of the team.
MSC/RSPO/DOC/06-02 33 Issue 1 Rev. 0 In the estate, it was noted that clean water has been provided and transported to the field for the sprayers‟ use. Each mandore had also been provided with the First Aid box. There were 16 workers under each of the mandore. This coverage was adequate to comply with the minimum requirement by regulation. However, it was found that some first-aid boxes were not equipped with eye-drops to address any eye irritation. While first aid boxes were provided, there is a need to ensure that only the female competent employee is required to handle the first aid procedures on their colleagues.
Terusan and Ribubonus certification units have ensured that all workers are covered by accident insurance. For foreign workers, they are covered through a highly reputed insurance company, whereas for local workers covered under SOCSO.
Criteria 4.8: All staff, workers, smallholders and contractors are appropriately trained.
Indicator 4.8.1: A training programme (appropriate to the scale of the organization) that includes regular assessment of training needs and documentation, including records of training for employees are kept. Major compliance
Audit findings
Terusan and Ribubonus have established a generic process for the identification of training needs which focuses mainly on the job and on OSH-related issues. Among the training identified were machine safe operating procedure, First Aid training, understanding of CSDS, waste management, chemical mixing and mill and field operation.
However, linkages from training need identification to training programmes need to be enhanced. Nevertheless, trainings were conducted according to the programmes schedule and records are maintained at the estate and mill office. Another area of improvement that Terusan and Ribubonus need to look into is the effectiveness of the training conducted.
During the assessment, Terusan and Ribubonus were still in the process of conducting refresher training mainly focusing on environmental and safety issues to all of the employees. Apart from the above, pamphlets on the RSPO criteria were also distributed to all employees as part of the awareness programme.
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 continuous improvement. Indicator 5.1.1: Documented aspects and impacts risk assessment that is periodically reviewed and updated. Major compliance
Indicator 5.1.2 : Environmental improvement plan to mitigate the negative impacts and promote the positive ones, is developed, implemented and monitored. Minor compliance
Audit findings
Terusan and Ribubonus have conducted the environmental aspects and impacts risk assessment for activities relating to the estates and mill operation. Records of risk assessment relating to the oil clarification process, kernel separation process, boiler operation, effluent treatment plant and waste management at the mill were sighted. Both mills were monitoring their air emission quality through stack sampling test and daily dark smoke monitoring records. The assessor found that the result of this
MSC/RSPO/DOC/06-02 34 Issue 1 Rev. 0 monitoring have been communicated to the DOE appropriately. The records of assessment for the estates covered the water catchment area, spraying and manuring activities, the nursery and waste disposal. Periodic review was carried out to capture any changes in the activities or legal requirements.
Environmental improvement plans to mitigate the negative impacts had been developed and were being implemented. Among the improvement plans were improving the quality of effluent discharged from the mills, reduction of fuel consumption and increasing the 3Rs initiatives (cross refer to 5.3 and 5. 6).
Criterion 5.2 : The status of rare, threatened or endangered species (ERTs) and high conservation value habitats, if any, that exists in the plantation or that could be affected by plantation or mill management, shall be identified and their conservation taken into account in management plans and operations.
Indicator 5.2.1: Identification and assessment of HCV habitats and protected areas within landholdings; and attempt assessments of HCV habitats and protected areas surrounding landholdings. Major compliance
Indicator 5.2.2: Management plan for HCV habitats (including ERTs) and their conservation. Major compliance
Indicator 5.2.3: Evidence of a commitment to discourage any illegal or inappropriate hunting fishing or collecting activities, and developing responsible measures to resolve human-wildlife conflicts. Minor compliance
Audit findings
Reports on the survey of HCV sites within the estates were presented to the assessor. The report was produced in-house by trained personnel. It reported the absence of sensitive species within the plantations. The reports included action plan and management recommendations. Conservation sites were demarcated and mapped. However, the plan could be enhanced with the inclusion of short term, midterm and long term objectives together with a schedule of work to be conducted. Specific management procedures could be developed for implementation in the field.
Apart from the above, Terusan and Ribubonus have to initiate monitoring programme to maintain the HCV areas. The monitoring could be enhanced with training of the team members to include monitoring of biological activities and potential rehabilitation plans of degraded forest sites as well as animal movement. A more coordinated monitoring mechanism among all the estates for all the HCV sites will assist in data gathering and greater efficiency.
Sabah has clear laws and regulations on hunting, fishing and collecting activities under Wildlife Conservation Enactment 1997, applicable to all without exception, even to the indigenous peoples. At the same time, it should be noted that local communities or indigenous peoples do consider such activities to be part of their customary rights, even if they formally submit to the laws and regulations. The in-house HCVA noted that there was illegal hunting by local communities. Terusan and Ribubonus Estates have taken action to monitor and control these activities, especially by their employees
In relation to the above matter, signages informing banning of hunting within the plantation was not seen at the main entrances of each estate. Nevertheless, warning signs were observed along boundary of conservation areas. It was also noted that, all signages were in written language format. It could be enhanced with more pictorial presentation for local communities to understand the consequences of poaching. This signage could be improved to avoid confusion between the numbering of the HCV sites and that of the attributes for conservation.
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Fig 18: Signage to restrict intrusion and illegal activity
Among the HCV sites inspected are in Ribubonus Estate and Terusan 2 Estate. These sites including the burial ground used by the local community were mapped out and demarcated on ground.
The survey report also recommended a study be conducted in the wetland habitat in Block 48 Terusan Estate to determine its potential as a site to attract avian fauna. The management of the estate could then consider the appropriate management plan.
WWF Malaysia in its response to stakeholders‟ consultation reported the presence of Orang Utan in Bidu Bidu FR. This FR borders Rumidi Estate. Verification on site showed no sighting of the Orang Utan presence within Rumidi Estate. Consultation with Telupid Forest Department and Sandakan Wildlife Department revealed that they have no issue on Terusan certification unit with regard to Bidu- Bidu FR.
Criterion 5.3: Waste is reduced, recycled, re-used and disposed off in an environmentally and socially responsible manner.
Indicator 5.3.1: Documented identification of all waste products and sources of pollution. Major compliance
Indicator 5.3.2: Having identified wastes and pollutants, an operational plan should be developed and implemented, to avoid or reduce pollution. Minor compliance
Specific Guidance: Scheduled wastes to be disposed as per EQA 1974 (Scheduled Wastes) Regulations, 2005. Reference to be made to the national programme on recycling of used HDPE pesticide containers.
Municipal waste disposal as per local authority or district council in accordance to the Ministry of Health guidelines (i.e. specifications on landfills, licensed contractors, etc) or Workers’ Minimum Standards of Housing and Amenities Act 1990 (Act 446).
Indicator 5.3.3: Evidence that crop residues / biomass are recycled (Cross ref. C4.2). Minor compliance
Audit findings
Terusan and Ribubonus have established a waste management plan that covers waste identification, reduction and disposal. Among the identified wastes are general waste from the line site and offices. Most of these wastes are recyclable and Terusan and Ribubonus have put in place infrastructure to support reduce, reuse and recycle (3R) initiatives.
MSC/RSPO/DOC/06-02 36 Issue 1 Rev. 0 The segregated waste bins i.e. plastic, glass and general waste, were placed at several locations within the estate and mill compound. Site assessment at line site and waste disposal area, as well as interviews with workers confirmed the implementation of the recycling initiative.
Most of the collected recyclable wastes were plastic waste. These were sold to vendors from Sandakan town. The non-recyclable wastes were disposed by burying them at designated disposal areas. Other than household waste, plastic containers/bags from manuring and spraying activities were also collected and reused.
The photographs below show the active sites of designated disposal area visited by the assessors.
Fig 19: Disposal Pit Fig 20: Segregation of recyclable waste
Wastes from the palm oil milling process were disposed as follows: EFB and decanter cake were sent for mulching in the field, while crop residue/biomass i.e. fibre and shell were used as fuel in the boiler. Palm oil mill effluent (POME) was treated in the effluent treatment plant with final discharge into the land irrigation at Terusan oil mill. For Ribubonus, the effluent was used in the composting process or otherwise discharged into land irrigation system.
Other wastes generated from maintenance activities of equipment and machinery in the estates or mills were scrap metal and scheduled wastes such as glove contaminated with chemical and used lubricating oil. Assessment team has visited the scrap metal and scheduled waste storage area. However the scheduled wastes handling could be enhanced. It was noted that the labelling of wastes stored, documentation on storage and disposal was not in accordance to Environmental Quality (Scheduled Wastes) Regulations, 2005. Nonconformity was raised on this matter (NCR SM 1).
Nevertheless, the disposals of the scheduled wastes were done through a licensed contractor as required by the authority. For scrap metal, it is sold to a vendor for recycling.
Both Terusan and Ribubonus have rectified the nonconformity. Documented evidences including photos were provided to the assessors.
Generation of the identified wastes are recorded and monitored on a monthly basis.
Criterion 5.4: Efficiency of energy use and use of renewable energy is maximized.
Indicator 5.4.1: Monitoring of renewable energy use per tonne of CPO or palm product in the mill. Minor compliance
MSC/RSPO/DOC/06-02 37 Issue 1 Rev. 0 Indicator 5.4.2: Monitoring of direct fossil fuel use per tonne of CPO or kW per tonne palm product in the mill (or FFB where the grower has no mill). Minor compliance
Audit findings
Terusan and Ribubonus were committed to using renewable energy in the mills. Fibre and shell were used as boiler fuel to generate steam for the process, as well as electricity for the mill complex and line site.
The usage of this renewable energy has been monitored and records maintained. Terusan and Ribubonus were also monitoring fossil fuel usage as per tonne of CPO on a monthly basis.
Criterion 5.5: Use of fire for waste disposal and for preparing land for replanting is avoided except in specific situations, as identified in the ASEAN Guidance or other regional best practice.
Indicator 5.5.1: No evidence of open burning. Where controlled burning occurs, it is as prescribed by the Environmental Quality (Declared Activities) (Open Burning) Order 2003. Major compliance
Indicator 5.5.2: Previous crop should be felled/mowed down, chipped/shredded, windrowed or pulverized/ ploughed and mulched. Minor compliance
Specific Guidance: A special dispensation from the relevant authorities should be sought in areas where the previous crop or stand is highly diseased and there is a significant risk of disease spread or continuation into the next crop.
Indicator 5.5.3: No evidence of burning waste (including domestic waste). Minor compliance
Audit findings
It was verified during the assessment through site visits, interviews and records that no open burning had been carried out. Records for Ribubonus (Central Division) planting of 18 ha revealed that the shrubs were felled and left to decompose within the planting areas.
Fig 21: Shrubs left to decompose
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Criterion 5.6: Plans to reduce pollution and emissions, including greenhouse gases, are developed, implemented and monitored.
Indicator 5.6.1: Documented plans to mitigate all polluting activities (Cross ref to C5.1). Major compliance
Indicator 5.6.2: Plans are reviewed annually. Minor compliance
Specific Guidance: Pollutants and emissions are identified and plans to reduce them are developed in conformance to national regulations and guidance.
Audit findings
Terusan and Ribubonus have established plans to reduce pollution and emissions. Among the planned actions were the improvement of the quality of effluent discharge (cross refer to 4.4).
Another improvement plan was aimed at emission reduction as well as fuel and chemical consumption reduction. This was implemented by phasing out estate vehicles which have been identified as having high fuel consumption as well as maintenance cost.
Records of the plans and evidence of implementation were sighted. The action plans were also reviewed during regular operations meetings.
PRINCIPLE 6: RESPONSIBLE CONSIDERATION OF EMPLOYEES AND OF INDIVIDUALS AND COMMUNITIES AFFECTED BY GROWERS AND MILLS
Criterion 6.1 Aspects of plantation and mill management, including replanting, that have social impacts 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 continuous improvement.
Indicator 6.1.1 A documented social impact assessment including records of meetings. Major compliance
Specific Guidance: Non-restrictive format incorporating elements spelt out in this criterion and raised through stakeholder consultation including local expertise.
Indicator 6.1.2 Evidence that the assessment has been done with the participation of affected parties. Minor compliance
Specific Guidance: Participation in this context means that affected parties or their official representatives or freely chosen spokespersons are able to express their views during the identification of impacts, reviewing findings and plans for mitigation, and monitoring the success of implemented plans.
Indicator 6.1.3 A timetable with responsibilities for mitigation and monitoring is reviewed and updated as necessary. Minor compliance
Guidance: Identification of social impacts may be carried out by the grower in consultation with other affected parties, including women and migrant workers as appropriate to the situation. The involvement of independent experts should be sought where this is considered necessary to ensure that all impacts (both positive and negative) are identified.
Particular attention should be paid to the impacts of outgrower schemes (where the plantation includes such a scheme).
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Plantation and mill management may have social impacts on factors such as: 1. Access and use rights. 2. Economic livelihoods (e.g. paid employment) and working conditions. 3. Subsistence activities. 4. Cultural and religious values. 5. Health and education facilities. 6. Other community values, resulting from changes such as improved transport /communication or arrival of substantial migrant labour force.
Audit findings
At the time of estate establishment, Sabah did not have any requirement for Social Impact Assessment (SIA).As such no SIAs has been conducted . In preparation for RSPO certification, separate Social Impact Assessments was conducted for Terusan and Ribubonus Certification Units. The PIC was a person who had undergone a course conducted by the Institut Sosial Malaysia (ISM) of the Federal Ministry of Women, Family and Community Development. The reports were available with supporting documentation. It was conducted principally through visits to identified stakeholder communities, informal discussions and formal interviews. Minutes of stakeholder meetings were kept.
Separate HCV Assessment (HCVA) was also conducted for Terusan and Ribubonus. The reports were sent to an external reviewer namely PT Daemeter (a member of the HCV Network). As a consequence, there was better supporting documentation for the Terusan and Ribubonus HCVA. The HCVAs covered HCV attributes 5 and 6, relating to local communities and indigenous peoples. The supporting documentation showed consultations with the identified local communities and indigenous peoples, including joint site visits to identify areas said to have attributes 5 and/or 6.
There was apparently not much communication between the SIA and HCVA teams. This was evident from the different, albeit overlapping, list of stakeholders in the SIA and HCVA. There could be an advantage in such separate assessments, as they could serve as a check on one another. However, for such advantages to be realised, there was a need to have better communication between the different teams once the work has been done. In the present instance, the different, overlapping, list of stakeholders allowed the assessors to discover a potential land claim.
While this might be seen as a shortcoming on the part of the SIA and HCVA, it has to be said that the stakeholders from whom the assessors obtained the information about the potential land claim were also consulted by the HCVA team, but the matter was not raised to them, possibly because the potential claimants were not yet ready to make their claim as they were still in the process of gathering the necessary supporting evidence (cross refer to C2.2).
Apart from the above, another shortcoming in both the SIA and HCVA was the degree of participation by the identified stakeholders (affected and interested persons, especially with regard to external parties) and the identification of stakeholders. Some of the stakeholders, were a little puzzled as to their involvement.
Currently, the primary criteria of stakeholders are: i. Parties that sell FFB to the mills operated by PPBOP, and/or ii. Communities within approximately 3km radius of the plantations.
This was admittedly a difficult matter since there are numerous communities all around the plantations. The plantations themselves are bordered by other plantations. Hence, it was not clear which communities, qua communities, were affected by whose operations. For members of those communities who were working in the Terusan and Ribubonus, they were considered as stakeholders (employee), but it was not evident that the communities from which they came from should taken as stakeholders - as that can be stretched to a point at which stakeholder consultation would become a meaningless exercise.
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Nevertheless, adoption of an iterative process, further consultation with already identified and confirmed stakeholders and their views on neighbouring communities, and monitoring, should facilitate the development of a fairly comprehensive and meaningful list of stakeholders from amongst the local communities and indigenous peoples in the area.
It was noted that participatory assessment was a new practice to the management. However, they are slowly acquiring the necessary attitudes, approaches and skills for engaging stakeholders in a more fully participatory process.
It was also noted that the lack of coordination between the two assessments meant that issues raised in one report, e.g. alleged illegal hunting by local communities, was not raised or incorporated in the other. Other matters, e.g., to correct maps showing villages which, no longer existed on the ground, or to correct identification pertaining to land under dispute which had been resolved were not acted upon. All these suggested that SIA/HCVA have yet to be fully incorporated into management procedures. This was another area for improvement.
Another shortcoming of the SIA was a focus on negative impacts, rather than both positive and negative, with an eye to leverage positive impacts to the benefit of the local communities, while mitigating or eliminating negative impacts. Indeed, some of the communities in the vicinity of Ribubonus saw the entry of the plantation as a positive development, one that they would like to leverage to their greater benefit. This may not always have been so; however, in recent times, especially with the boom in the price of oil palm, many in the local communities/indigenous people have become interested in cultivating oil palm and look to leverage the presence of the estates.
With regards to negative impacts, assessor interviews with local community representatives did not raise any significant issues not already noted in the in-house SIA, other than the already mentioned potential land claim. In general, local community representatives were largely positive about the estates and, in particular, the new-found relationship being developed in the process towards RSPO certification. Specifically, in the case of Ribubonus, local community/indigenous people. representatives were largely positive about its presence with regards to ease of transportation via the estate road and ferry, facilitating not only access to town but also state-run health and school facilities, as well as the cultural change resulting from the presence of the estate, namely the transition to cash- crop cultivation and the virtual abandonment of subsistence rice cultivation, formerly a central component of identity.
Nevertheless, some of the baseline data is inconsistent and, in some instances, apparently inaccurate, although they had apparently been sourced from community representatives. Some of this, for example, population, could be due to community representatives have included all persons working and resident elsewhere as their member of the village, resulting in large mean household size. This needs to be improved, to provide an adequate basis for monitoring and evaluation. Indeed, while historical issues were important, the focus should be on monitoring and evaluation for early detection of emerging issues and for continuous improvement.
Despite these shortcomings, the assessments did uncover significant issues, with the notable absence of the potential land claim. However, recommendations need to be followed through with action, for example, a request for priority in employment opportunities was a request for an established, on-going chain of communications about vacancies in place of the previous informal, word-of-mouth, communications, usually through current employees from the surrounding area. This could be achieved by establishing a procedure for disseminating information about vacancies to the surrounding communities as part of the stakeholder consultation and communication process.
Consultations with local community representatives during the assessment indicated that the SIA and HCVA exercises were welcomed and the communities looked forward to such consultations and communications in the future. At the same time, many did not have a clear understanding of the RSPO
MSC/RSPO/DOC/06-02 41 Issue 1 Rev. 0 process, other than that it required consultation. Some were not sure why they were included in the process as they have not had much dealing with Terusan or Ribubonus and do not see how they are affected by their operations. Additionally, while they were aware there was a complaints procedure, they were unsure how it differed from the previous practice of simply approaching personnel from Terusan or Ribubonus; indeed, this might even be a preferred practice as the cultures of the local communities were, until fairly recently, primarily oral.
One positive outcome of the process of engaging stakeholders and the local communities is the participation of Ribubonus in a smallholder training and assistance scheme under the Malaysian Palm Oil Board (MPOB). For their part, members of local communities were also interested in developing a beneficial relationship with Ribubonus and Terusan, and hope to leverage some of the advantages available to large growers, but not to smallholders, e.g., lower prices through bulk purchasing, through this relationship.
Criterion 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.
Indicator 6.2.1 Documented consultation and communication procedures. Major compliance Indicator 6.2.2 A nominated plantation management official at the operating unit responsible for these issues. Minor compliance
Indicator 6.2.3 Maintenance of a list of stakeholders, records of all communication and records of actions taken in response to input from stakeholders. Minor compliance
Specific Guidance: Decisions that the growers or mills are planning to make should be made clear, so that local communities and other interested parties understand the purpose of the communication and/or consultation.
Communication and consultation mechanisms should be designed in collaboration with local communities and other affected or interested parties These should consider the use of existing local mechanisms and languages. Consideration should be given to the existence/ formation of a multi-stakeholder forum.
Communications should take into account differential access to information of women as compared to men, village leaders as compared to day workers, new versus established community groups, and different ethnic groups.
Consideration should be given to involving third parties, such as disinterested community groups, NGOs, or government (or a combination of these), to facilitate smallholder schemes and communities, and others as appropriate, in these communications.
Audit findings
There were documented consultation and communication procedures with designated PICs. These should be further written up as Standard Operating Procedures with a record of revisions, if any.
Records of minutes of meetings, communications, notices and lists of stakeholders are maintained. However, as noted in Criterion 6.1, there are some shortcomings with regards to the identification of stakeholders.
An opportunity for improvement could be the establishment of a consultative committee with an agreed Terms of Reference (TOR) and with active representation of stakeholders. As matters now stand, stakeholder meetings are usually at the discretion of management, while dissemination of information such as job vacancies still primarily rely upon informal channels of current employees to friends, relatives and communities.
MSC/RSPO/DOC/06-02 42 Issue 1 Rev. 0 Apart from the above, as the cultures of the surrounding local communities/indigenous people were, until recently, primarily oral, there is still a tendency for transmission of, e.g., complaints, requests, etc. to be conducted orally. These information (should it be communicated to any member of Terusan and Ribubonus), need to be officially documented in the complaint form in accordance to their procedure.
Criterion 6.3 There is a mutually agreed and documented system for dealing with complaints and grievances, which is implemented and accepted by all parties.
Indicator 6.3.1 Documentation of the process by which a dispute was resolved and the outcome. Major compliance
Specific Guidance: Records are to be kept for 3 years.
Indicator 6.3.2 The system resolves disputes in an effective, timely and appropriate manner. Minor compliance
Indicator 6.3.3 The system is open to any affected parties. Minor compliance
Guidance: Dispute resolution mechanisms should be established through open and consensual agreements with relevant affected parties.
Complaints may be dealt with by mechanisms such as Joint Consultative Committees (JCC) with gender representation. Grievances may be internal (employees) or external.
Audit findings
As part of the process towards RSPO certification, a system for dealing with complaints and grievances has been developed and validated in joint meetings with stakeholders. The system appeared to be effective and appropriate. For instance, there was a complaint regarding discharge of effluents from the Ribubonus mill which resulted in corrective action followed by complainant visits to verify the outcome. The same had also resulted in the resolution of a long-standing claim to land within the Terusan title area. Documentation on all these cases was available.
However, the procedure for external stakeholders, especially from local communities/indigenous people, has to be better established. It was still to be too much of a case-by-case basis.
A parallel system for complaints and grievances was also in place for employees, and there were workers representations on the relevant committees, in particular, the welfare committee. The procedure for internal stakeholders‟ complaint and grievances was well-established as judged from the documentation and in interviews with workers.
Criterion 6.4 Any negotiations concerning compensation for loss of legal or customary 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 6.4.1 Establishment of a procedure for identifying legal and customary rights and a procedure for identifying people entitled to compensation. Major compliance
Indicator 6.4.2 A procedure for calculating and distributing fair compensation (monetary or otherwise) is established and implemented. This takes
MSC/RSPO/DOC/06-02 43 Issue 1 Rev. 0 into account gender differences in the power to claim rights, ownership and access to land; and long-established communities; differences in ethnic groups’ proof of legal versus communal ownership of land. Minor compliance
Indicator 6.4.3 The process and outcome of any compensation claims is documented and made publicly available. Minor compliance
Specific Guidance: This criterion should be considered in conjunction with Criterion 2.3.
Audit findings
Sabah has a formal legal procedure for identification of native rights and entitlement, namely, gazetted areas. This procedure is used by Terusan and Ribubonus in guiding them for any decision making.
Terusan dispute, was neither a customary rights nor legal dispute, but one related to a promise made by the previous title holder, A proper documentations including a procedure to identify claimants and records were are available was an example of dispute resolved through consultation.
Other than the potential claim and the legacy claim mentioned above, the local communities/indigenous people consulted during the course of audit, stated that they had no customary or legal rights issues with the estates in question, despite some pressure from the assessors.
Criterion 6.5 Pay and conditions for employees and for employees of contractors always meet at least legal or industry minimum standards and are sufficient to provide decent living wages.
Indicator 6.5.1 Documentation of pay and conditions. Major compliance
Indicator 6.5.2 Labour laws, union agreements or direct contracts of employment detailing payments and conditions of employment (e.g. working hours, deductions, overtime, sickness, holiday entitlement, maternity leave, reasons for dismissal, period of notice, etc) are available in the language understood by the workers or explained carefully to them by a plantation management official in the operating unit. Minor compliance
Indicator 6.5.3 Growers and millers provide adequate housing, water supplies, medical, educational and welfare amenities in accordance with Workers’ Minimum Standard of Housing and Amenities Act 1990 (Act 446) or above, where no such public facilities are available or accessible (not applicable to smallholders). Minor compliance
Guidance: Where temporary or migrant workers are employed, a special labour policy should be established. This labour policy would state the non discriminatory practices; no contract substitution of original contract, post arrival orientation program to focus especially on language, safety, labour laws, cultural practices etc; decent living conditions to be provided. Migrant workers are legalised, and a separate employment agreement should be drawn up to meet immigration requirements for foreign workers, and international standards, if ratified.
Audit findings
As noted in Criterion 6.1, the estates paid at least the prevailing market wages, with all the employees that had been interviewed during the assessment saying that terms and conditions of work were good. The wages and conditions were documented, and every employee has a contract of service. The minimum wage rate stated was RM14 per day, although workers may be paid on a piece- or daily-rated basis. Examples of piece-rated basis works were spraying, fertilizer application, harvesting
MSC/RSPO/DOC/06-02 44 Issue 1 Rev. 0 and FFB evacuation.
Through the inspection of workers payslip, the assessor confirmed that the payment and deduction made complied with the Labour Ordinance. The deductions were only from tools and for local workers, EPF/SOCSO. There was no deduction from levy payment made for foreign workers.
Partial compliance was found with the guaranteed work week requirement (Sabah Labour Ordinance 1950, Section 10). Workers that turned out for muster but not able to carry out their duties due to bad weather condition were only paid half day wage.
As this matter is brought up to the management attention, immediate corrective action was taken to establish a procedure to address this matter. Non-conformity was raised as no evidence is available to show that the newly established procedure is implemented (NCR KKJ 01).
As part of the corrective action taken and while this report is being prepared, Terusan and Ribubonus have rectified the above condition. Evidence of full day wage paid to the workers was extended to the assessors for verification. Nevertheless, this implementation will be further verified during surveillance assessment in ensuring that the procedure is observed and the workers understand what is required of them and what are their rights on this matter are.
Other than the above, the management is in compliance with the labour laws and the relevant sections of the laws are made known to the workers. However, this can be enhanced to improve workers‟ awareness.
The assessment also noted that the average income per worker for both operating units were more than RM600/month. However, most of the household in Terusan and Ribubonus would consist of two workers (husband and wife). The average income per household for Terusan was found to be at RM1, 340 per month whereas for Ribubonus was RM1, 512 per month. Hence, this is above the rural Sabah poverty line indicator of RM1, 000 per household pr month.
It should be noted that with regards to Indicator 6.5.3 - the Workers‟ Minimum Standard of Housing and Amenities Act 1990 (Act 446) is not a law in Sabah. However, management is in the process of upgrading housing to conform to the Act. Nevertheless, workers interviewed expressed satisfaction with their current housing. Their “house pride” might be taken as supporting their statements – well- maintained potted plants neatly tiered in front of their homes; neat and decorated living rooms.
Water and electricity are supplied free; clinic facilities are also free, except for family planning medicine. There were two clinics for Terusan and Ribubonus certification unit, i.e. one for Terusan and one for Ribubonus. They were manned by qualified hospital assistants. Terusan and Ribubonus have demonstrated to the assessor the valid license to practice as dresser, which was issued by the state government. Although the hospital assistants were male, they were assisted by highly trained female assistants. These female assistants would accompany female patients being treated by the male assistants. The clinic nurses are responsible to monitor the movement of all medicines and recorded in the daily/monthly issue book. From this data, they can always ensure that medicine supply is always sufficient at all time. Terusan and Ribubonus also have their own special vehicles to transport sick employees and dependents from the housing areas or from the workplace. In the case of treatment is needed to be carried out by higher authority, employees would be sent to the Government Hospital. Transportation and treatment cost will be borned by the company. Other welfare amenities such as a hall, football field, children‟s playground, crèche, mosques and chapel were also provided.
Water supply to the line sites and the mills was tapped from the nearby stream/river and treated in water treatment plants. At the point of assessment, Rumidi‟s WTP was not in operation since it is in the midst of being repaired and upgraded by contractor.
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Fig 22: Water clarifier at Fig 23: New filter system in Fig 24: Water catchment pond in Rumidi Ribubonus Ribubonus However, improvement was clearly needed as there were certain areas in the line site which were not provided with piped (treated) water supply. Assessment of records showed that Terusan & Ribubonus were very much aware of this condition. Budget has been allocated to replace old housing and, all amenities would be upgraded accordingly. Currently, the number of houses were adequate to accommodate all their executives, staff and workers. In Terusan mill and estates, there were 87 units of H-type (4 doors with 2 rooms per door) houses. Whereas, in Ribubonus, there were only 4 units of H-type house. At the point of audit 7 more units were still under construction. The other houses were still the I-type (10 doors with 2 rooms per door) houses and Ribubonus were in the process of replacing them all with H-type in stages. These was being done in stages and was expected to be completed at the end of 2012. In Ribubonus (North Division) the community had to use common toilets outside the house and domestic water waste from each house is channelled into earth-drains.
Fig 25: Common toilet Fig 26: Domestic discharge in earth-drain
It was also observed that the crèche in Terusan and Ribubonus were over crowded with children and the number of crèche ayahs were not sufficient to meet the ratio as in authority‟s guidance. During the assessment, the supply of free milk to children in the nursery was not being practiced yet. It was because Terusan and Ribubonus need to have properly trained personnel to prepare and handle the milk, as milk being a highly nutritious food could easily spoiled or be contaminated. Terusan and Ribubonus are currently working towards the provision of free food supplement/milk in their entire child care centre as part of their CSR commitment. It was noted that record of infants was available and their attendance was recorded daily. The medical practitioner (Visiting Medical Officer) paid a visit once a month and any comment from him were properly recorded and verified by the management.
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Fig 28: Children spending time with each other Fig 27: Crowded crèche at Terusan Estate at Ribubonus Estate Crèche
Schools for foreign workers children were also provided. The basic infrastructures were provided by the estates and a small fee is charged to the workers. The schools, known as HUMANA are operated by Borneo Child Aid Society. These schools have been in operation for about a year. Consultation with Borneo Child Aid Society revealed that they had good cooperation from the estates.
The local workers‟ children, on the other hand, were sent to the government schools nearby the plantations and the mills. Terusan and Ribubonus provided free transportation for the school going children. The form of the transport was school bus (Figure 29). The assessors confirmed that the school buses have the safety features and were in good condition. On top of that, all of the buses for transporting children were registered and subject to six monthly inspection by PUSPAKOM. All the drivers whom were assigned to send the school children possessed valid driver‟s licence.
Fig 29: Local schoolchildren are sent to the school by bus provided by the company
Terusan and Ribubonus have initiated HUMANA as part of early education for children. The HUMANA was not only attended by the foreign children, but also by the local as well. Apart from that, contribution was made to the government school in term of monetary assistance upon request. This included supporting school educations programme, Independence Day celebration, Teachers‟ Day celebration, contribution to underprivileged school children and sport carnival to name a few. The assessor confirmed through verification of some correspondence between the school and the company that this monetary contribution were authentic.
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Criterion 6.6 The employer respects the right 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.
Indicator 6.6.1 Documented minutes of meetings with main trade unions or workers representatives. Major compliance
Indicator 6.6.2 A published statement in local languages recognizing freedom of association. Minor compliance
Guidance: The right of employees and contractors to form associations and bargain collectively with their employer should be respected. Documented company policy recognizing freedom of association.
Labour laws and union agreements or in their absence, direct contracts of employment detailing payments and other conditions are available in the languages understood by the workers or explained carefully to them by a plantation management official in the operating unit.
Audit findings
Terusan and Ribubonus respected the right of personnel to freedom of association. Notices on this matter were displayed on notice boards at every site.
Interviews with workers revealed that they were aware of this right. Eventhough there was no official union formed in Terusan and Ribubonus, there were documented minutes of meetings with workers representatives on workers issue. Among the records sighted were Workers‟ Welfare Committee and Occupational Safety and Health Committee minutes of meetings.
Criterion 6.7 Children are not employed or exploited. Work by children is acceptable on family farms, under adult supervision, and when not interfering with education programmes. Children are not exposed to hazardous working conditions.
Indicator 6.7.1 Documented evidence that minimum age requirement is met. Major compliance
Guidance: Growers and millers should clearly define the minimum working age, together with working hours. Only workers 16 years and older may be employed, with the stated exception of family farms. Smallholders should allow work by children only if permitted by national regulations.
The minimum age of workers should be not less than 16 years, or the minimum school leaving age, or the minimum age permitted under national regulations, where higher.
Audit findings
Terusan and Ribubonus have established a policy which prohibited the use of child labour. Its implementation was evident through verification of employment records which showed the minimum age requirement under Sabah Labour Ordinance section 72 (CAP 67) 1950 was being complied with.
Site assessment also confirmed that there were no children working in Terusan and Ribubonus. Interviews with workers also revealed that they were aware of the requirement. The register of employees includes the date of birth as for the age verification.
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Criterion 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.
Indicator 6.8.1 A publicly available equal opportunities policy. Major compliance
Indicator 6.8.2 Evidence that employees and groups including migrant workers have not been discriminated against. Minor compliance
Guidance: The grievance procedures detailed in 6.3 apply. Positive discrimination to provide employment and benefits to specific communities is acceptable as part of negotiated agreements
Audit findings
Driven by an equal opportunities policy, Terusan and Ribubonus were strongly committed in evading discrimination. Other than what might be expected from task requirements, e.g., harvesting work, and the industry culture, i.e., male dominated at managerial level; there is no evidence of discrimination, including at staff and executive levels. Local workers are predominantly in non-harvesting work, but interviews indicate that this was due to preference despite higher potential earnings.
In general, workers‟ satisfaction was high. This emerged from interviews with workers as well as the records on long tenure of employments.
Criterion 6.9 A policy to prevent sexual harassment and all other forms of violence against women and to protect their reproductive rights is developed and applied.
Indicator 6.9.1 A policy on sexual harassment and violence and records of implementation. Major compliance
Indicator 6.9.2 A specific grievance mechanism is established. Major compliance
Guidance: There should be a clear policy developed in consultation with employees, contractors and other relevant stakeholders, which should be publicly available. The policy is applicable within the boundaries of the plantation/mills or while on duty outside the premises. Progress in implementing the policy should be regularly monitored and the results of monitoring activities should be recorded.
A committee specifically to address concerns of women may be required to comply with the criterion. This committee will consider matters such as; training on women’s rights, counselling for women affected by violence and child care facilities to be provided by the growers and millers. The activities of the committee should be documented.
Audit findings
Terusan and Ribubonus have published a policy on prohibiting sexual harassment. This policy has been made available to the employees and to the public.
The grievance mechanism for handling sexual harassment issues was also available. A Women and Children committee has been established by Terusan and Ribubonus to handle sexual harassment and children-related issues. Interviews with the committee members revealed that they were aware of their roles and responsibilities.
Criterion 6.10
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Indicator 6.10.1 Pricing mechanisms for FFB and inputs/services shall be documented. Major compliance
Indicator 6.10.2 Current and past prices paid for FFB shall be publicly available. Minor compliance
Indicator 6.10.3 Evidence shall be available that all parties understand the contractual agreements they enter into, and that contracts are fair, legal and transparent. Minor compliance
Indicator 6.10.4 Agreed payments shall be made in a timely manner. Minor compliance
Guidance : Transactions with smallholders should consider issues such as the role of middlemen, transport and storage of FFB, quality and grading. The need to recycle the nutrients in FFB (under 4.2) should also be considered; where it is not practicable to recycle wastes to smallholders, compensation for the value of the nutrients exported might be made via the FFB price.
Smallholders must have access to the grievance procedure under criterion 6.3, if they consider that they are not receiving a fair price for FFB, whether or not middlemen are involved.
The need for a fair and transparent pricing mechanism is particularly important for out growers, who are contractually obliged to sell all FFB to a particular mill.
If mills require smallholders to change practices to meet the RSPO criteria, consideration must be given to the costs of such changes, and the possibility of advance payments for FFB could be considered.
Audit findings
TPOM received about 9 % of outside crop from smallholders and 11 % from nearby Estates namely Andamy and Arunamary Estate. Three of the smallholders and the two estates manager were interviewed during the assessment. Consultation with other smallholders was also done through discussion their village head/representative at their premises.
RBPOM received about 2% FFB from neighbouring smallholders and 20% from neighbouring private owned estate namely Twin Acres and Pelumas Estate. Consultation with smallholders was done through discussion with village head/representative.
The outcome of the consultation with the supplier (smallholders and estate) revealed that generally they are happy on their FFB trading with Terusan and Ribubonus. The trading has been ongoing for quite a long time. It ranges from three years to fifteen years at TPOM and since its commissioning at RBPOM.
Among the comments received were prices offered were slightly higher compared to other mills, and payments were promptly made. However, some the smallholders commented on the strictness with sub-standard fruit. Nevertheless, they are aware of the authority‟s requirement on the quality of product as well as other requirements in the agreements.
Cross checked with the documentation i.e. agreement showed that the pricing mechanisms for FFB were well documented at both TPOM and RBPOM.
Apart from the FFB supplier, interview with the canteen operators and provision shop operators at the estates and mills revealed that they have no issue with both Tersuan and Ribubonus.
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Criterion 6.11 Growers and millers contribute to local sustainable development wherever appropriate.
Indicator 6.11.1 Demonstrable contributions to local development that are based on the results of consultation with local communities. Minor compliance
Guidance:
Contributions to local development should be based on the results of consultation with local communities. See also Criterion 6.2. Such consultation should be based on the principles of transparency, openness and participation and should encourage communities to identify their own priorities and needs, including the different needs of men and women.
Where candidates for employment are of equal merit, preference should always be given to members of local communities in accordance to national policy. Positive discrimination should not be recognized as conflicting with Criterion 6.8.
Audit findings
Members of surrounding communities interviewed said that the estates have had a significant positive impact on incomes, a positive impact on infrastructure, some impact on wage employment opportunities (employment statistics indicate some preference to local communities at staff level and in line-work they preferred) and it has also been a source of some welfare assistance and to meet some basic needs, e.g., potable water during long droughts. They also said that it had changed cultures, habits and practices, and that it had changed the population composition. On the negative side, they said that it has had a negative impact on river water quality and on food resources, although given the extensive estate development in the area, it would be hard to pin this down to any particular estate. Overall, the local communities judged the estates as positive.
However, not much of this positive impact was a result of consultative action. Requests for assistance were on an ad hoc basis, with action at the discretion of management. To date, there are no formal consultative committee to establish needs and priorities, with action plans to achieve measurable outcomes, e.g., increasing the yield of smallholders in the surrounding local communities. An area for improvement is to establish a formal consultative committee or committees, since there are two estates separated by some distance.
Recently, management has engaged with the MPOB in a smallholder assistance scheme. This is welcomed by the local communities who know of it.
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 continuous improvement in key operations.
MY NIWG commits to demonstrate progressive improvement to the following but not limited to:
Indicator 8.1.1 Minimize use of certain pesticides (C4.6) Major compliance
Indicator 8.1.2 Environmental impacts (C5.1) Major compliance
Indicator 8.1.3 Maximizing recycling and minimizing waste or by-products generation. Major compliance
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Specific Guidance To work towards zero-waste (C5.3)
Indicator 8.1.4 Pollution prevention plans (5.6) Major compliance
Indicator 8.1.5 Social impacts (C6.1) Major compliance
Indicator 8.1.6 A mechanism to capture the performance and expenditure in social and environmental aspects. Minor compliance
Guidance Specific minimum performance thresholds for key indicators should be established. (See also Criterion 4.2, 4.3, 4.4, and 4.5). Growers should have a system to improve practices in line with new information and techniques and a mechanism for disseminating this information and throughout the workforce.
Audit findings
Generally, Terusan and Ribubonus have established a system to regularly monitor and review their key activities at the mill and estates, and then initiate action plans for continuous improvement.
Evidence sighted included the commitment to minimize the use of certain pesticides by implementing IPM. Other improvement plans include the commitment to zero waste by not only using by-products such as EFB & POME in the fields but also increasing the awareness of workers on 3R‟s initiatives (i.e. reduce, reuse, recycle).
A mechanism to capture the performance and expenditure is well established. It was not limited to social and environmental aspects only but it also extended to Occupational Safety & Health matters. Among the improvements made was the provision of a changing room for sprayers to ensure no contamination to their family and the changing of the system of carrying the spraying chemical in jerry can to tanker.
It was also observed old workers‟ quarters at Terusan and Ribubonus are gradually being demolished and replaced with new houses. Employees have also expressed their general satisfaction with the terms and conditions of work. However, an opportunity for further improvement was to establish a procedure for monitoring family incomes and where they fell below Sabah's poverty income line, to establish a corrective plan of action to see that no family earns, in combination with income in kind, was less than the poverty line.
HCV areas within the estates has been identified and management plan were also established. However, improvements needed in ensuring all recommended action were acted upon in short and long term time frames.
Local communities have judged the social impact of the estates to be, on balance, a positive one. Moreover, at the moment, no significant negative impacts need to be addressed. However, documented action plan with regards to local communities/indigenous people could be drafted out. Currently, actions are taken based on ad-hoc request by the communities.
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4.0 Assessment Recommendation
Based on the evidence gathered, it can be concluded that PPB Oil Palms Berhad, Terusan and Ribubonus Certification Unit have conformed to the requirements of the RSPO MYNI. All major nonconformities have been closed out through verification of corrective action records.
The audit team recommends PPB Oil Palms Berhad Terusan Certification Unit and Ribubonus Certification Unit for certification against RSPO MYNI.
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ASSESSMENT PROGRAMME Attachment 2
SIRIM QAS INTERNATIONAL SDN. BHD. Sustainability Certification Section
RSPO MAIN ASSESSMENT PLAN
1. Objectives The objectives of the assessment are as follows: (i) To determine PPB Oil Palms Berhad (PPBOPB) conformance against the RSPO Principles & Criteria Malaysian National Interpretation (MYNI). (ii) To make appropriate recommendations based on the assessment findings.
2. Date of assessment : 1st – 5th October 2009
3. Site of assessment : PPB Oil Palms Berhad Terusan Palm Oil Mill, Terusan 1 Estate, Terusan 2 Estate, Rumidi Estate, KM 20, Jalan Nangoh, Off Jalan Sandakan-Telupid, Sandakan, Sabah
Ribubonus Palm Oil Mill, Ribubonus Sdn. Bhd. KM 125, Jalan Sandakan-Telupid, Sandakan, Sabah.
4. Reference Standard a. RSPO P&C MYNI b. Company‟s audit criteria including Company‟s Manual/Procedures
5. Assessment Team a. Lead Assessor : Sabarinah Marzuky b. Assessor : Dr. Yap Son Kheong Khoo Khay Jin Hj. Abd. Aziz Abu Bakar Azhar Mustapha
If there is any objection to the proposed audit team, the organization is required to inform the Lead Auditor/RSPO Section Manager.
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6. Audit Method Site audits including observation of practices, interviews with interested parties (employees, nearby population, etc.), documentation evaluation and evaluation of records.
7. Confidentiality Requirements SIRIM QAS International shall not disclose any information concerning the company regarding all matters arising or coming to its attention with the conduct of the programme, which is of confidential in nature other than information, which is in the public domain.
In the event that there be any legal requirements for disclosing any information concerning the organization, SIRIM QAS International shall inform the organization of the information to be disclosed.
8. Working Language : English and Bahasa Malaysia
9. Reporting a) Language : English b) Format : Verbal and written c) Expected date of issue : Sixty days after the date of assessment d) Distribution list : client file
10. Facilities Required a. Room for discussion b. Relevant document and record c. Personnel protective equipment if required d. Photocopy facilities e. A guide for each group
11. Assessment Programme Details : As below
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Day one: 01 October 2009 (Thursday) Activities /areas to Sabarinah Abd. Aziz Azhar Khoo Khay Jin Yap Son Kheong Auditee be visited 8.00 – Opening Meeting, audit team introduction and briefing on audit objectives, scope, methodology, criteria and programmes by audit team Top mgmt & Committee 8.15 am leader Member 8.15 – Briefing on the organization background and implementation of RSPO (including action taken to address stage 1 assessment findings) Management 8.30 am Representative 8.30 – Site visit and Site visit and Site visit and Discussion with relevant Site visit and Guide/PIC 12.00 pm assessment at Terusan assessment at Terusan 2 assessment at Terusan management (CSR, assessment at Palm Oil Mill Estate: Palm Oil Mill community affairs) and environmental area of Utilities (ETP, gen- Good Agricultural Administration preliminary viewing of concern at Terusan 1 & set, boiler, WTP, Practice department documentation relating to 2 Estates and Rumidi etc.) Workers Issues Facilities at local community and Estate: o Waste management Line site workplace (rest area, indigenous peoples Area of more than 25 Interview with FFB EFB mulching etc) issues such as EIA, SIA Riparian zone supplies and other Plantation on Utilities (gen-set, and management plans. River system including supplies hilly/swampy area boiler, etc.) POME discharge Interviews with mill‟s witness activities at Production area Assessment on P1, P2- Forested area workers site (weeding/ Chemical store C2.1-2.1.1, P6 (6.1, 6.2, Plantation boundary spraying/other Workshop 6.3, 6.4) P8 Water bodies maintenance Source of water supply Visit and assessment at: activities/ harvesting) Over planted areas Terusan 1 & 2 HCV estates surrounding Other area identified community during the assessment Humana School Provision shop operator
12.00 – Break 2.00 pm 2.00 – Assessment on P1, P2 , Assessment on P2 Assessment on P1, Assessment on P1, P2 Guide/PIC 5.00 pm P4 (C4.4-4.4.3, 4.4.4, (C2.1, C2.2.- 2.2.1, P2(C2.1-2.1.4), (C2.1- 2.1.1, C2.2-2.2.3, 4.4.5, 4.4.7, C4.8), 2.2.2, 2.2.3), P3, P4 P4( C4.1 – 4.1.2, C4.7, P3, P4( C4.4-4.4.1, P5(C5.1, C5.3-5.3.1, (C4.1, 4.2, 4.3, 4.5, 4.6), C4.8) , P8 4.4.2, 4.4.6) P5 (C5.2, 5.3.2, C5.4, C5.6), P8 C5.5, P6 (6.5, 6.6, 6.7, C5.3-5.3.3, 5.4, 5.6), P8
6.8, 6.9, 6.10, 6.11), P8
08.00- Audit team discussion Document review Relevant PIC 10.00pm
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Day two: 02 October (Friday) Activities /areas to Sabarinah Abd. Aziz Azhar Khoo Khay Jin Yap Son Kheong Auditee be visited Site visit and assessment Site visit and assessment Site visit and assessment Continue assessment at Continue assessment at Guide/PIC 08.00- at Terusan 2 estate at Rumidi Estate: at Terusan 2 estate Rumidi Estate environmentally area of 11.00 pm Dumping site for Good Agricultural concern at Terusan 1 & estate & mill Practice Administration 2 Estates and Rumidi Assessment on P1, P2- Utilities (WTP , gen- Workers Issues department Estate C2.1-2.1.1, P6 (6.1, 6.2, set & etc) Facilities at Line site 6.3, 6.4) P8 Waste management fertilizer stores workplace (rest area, Assessment on P1, P2 Facilities at witness activities at etc) (C2.1- 2.1.1, C2.2-2.2.3, workplace (rest site (weeding/ Dispensary P3, P4( C4.4-4.4.1, area, etc) spraying/harvesting) Chemical store 4.4.2, 4.4.6) P5 (C5.2, Dispensary Workshop C5.3-5.3.3, 5.4, 5.6), P8 Chemical store Assessment on P2 Workshop (C2.1, C2.2.- 2.2.1, Assessment on P1, 2.2.2, 2.2.3), P3, P4 P2(C2.1-2.1.4), Assessment on P1, P2 , (C4.1, 4.2, 4.3, 4.5, 4.6), P4( C4.1 – 4.1.2, C4.7, P4 (C4.4-4.4.3, 4.4.4, C5.5, P6 (6.5, 6.6, 6.7, C4.8) , P8 4.4.5, 4.4.7, C4.8), 6.8, 6.9, 6.10, 6.11), P8
P5(C5.1, C5.3-5.3.1, 5.3.2, C5.4, C5.6), P8
Interview with Terusan 2 estate‟s employees
12.00 pm Travel to Ribubonus -02.00pm 02.00- Site visit and assessment Assessment at Site visit and assessment Discussion with relevant Site visit and assessment Guide/PIC 05.00pm at Ribubonus Palm Oil Ribubonus Estate on : at Ribubonus Palm Oil management (CSR, at environmentally area Mill Mill community affairs) and of concern at Ribubonus P2 (C2.1, C2.2.- 2.2.1, Utilities (ETP, gen- Administration preliminary viewing of Estates and mill: 2.2.2, 2.2.3), P3, P4 o set, boiler, WTP, department documentation relating to Area of more than 25 (C4.1, 4.2, 4.3, 4.5, 4.6), etc.) Facilities at local community and Riparian zone C5.5, P6 (6.5, 6.6, 6.7, Waste management workplace (rest area, indigenous peoples 6.8, 6.9, 6.10, 6.11), P8 River system including Interview with FFB etc) issues such as EIA, SIA POME discharge supplies and other Utilities (gen-set, assessment and Forested area supplies boiler, etc.) management plans. Plantation boundary Interviews with mill‟s Production area Water bodies workers Chemical store Visit and assessment at: Source of water supply Ribubonus estate & mill Workshop HCV surrounding community Assessment on P1, P2 , Other area identified (schedule according to P4 (C4.4-4.4.3, 4.4.4, during the assessment
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4.4.5, 4.4.7, C4.8), Assessment on P1, their convenience) P5(C5.1, C5.3-5.3.1, P2(C2.1-2.1.4), 5.3.2, C5.4, C5.6), P8 P4( C4.1 – 4.1.2, C4.7, C4.8) , P8
08.00- Audit team discussion Document review Relevant PIC 10.00pm
Day three: 03 October 2009 Activities/ areas to Sabarinah Abd. Aziz Azhar Khoo Khay Jin Yap Son Kheong Auditee be visited 08.00- Site visit and assessment Site visit and assessment Site visit and assessment Continue assessment at Continue assessment at 12.00 pm at Ribubonus estate at Ribubonus Estate: at Ribubonus estate Ribubonus Estate & mill, Ribubonus Estate & mill, Dumping site at Good Agricultural Administration surrounding community , at environmentally area estate & mill Practice department smallholders and of concern at Ribubonus Environmental issue Workers Issues Facilities at Humana school Estates and mill. Scheduled waste & Line site workplace (rest area, non-scheduled areas chemical /fertilizer etc) Assessment on P1, P2 Utilities (WTP , gen- stores Dispensary Assessment on P1, P2- (C2.1- 2.1.1, C2.2-2.2.3, set & etc) workshop Chemical store C2.1-2.1.1, P6 (6.1, 6.2, P3, P4( C4.4-4.4.1, 6.3, 6.4) P8 EFB mulching Workshop 4.4.2, 4.4.6) P5 (C5.2, C5.3-5.3.3, 5.4, 5.6), P8 Plantation on hilly
witness activities at site (weeding/ spraying/other maintenance activities/ harvesting) 12.00- Break 02.00 m 02.00- Assessment on P1, P2 , Continue assessment at Assessment on P1, Continue assessment Continue assessment Guide/PIC 04.00 pm P4 (C4.4-4.4.3, 4.4.4, Ribubonus Estate on : P2(C2.1-2.1.4), 4.4.5, 4.4.7, C4.8), P2 (C2.1, C2.2.- 2.2.1, P4( C4.1 – 4.1.2, C4.7, P5(C5.1, C5.3-5.3.1, 2.2.2, 2.2.3), P3, P4 C4.8) , P8 5.3.2, C5.4, C5.6), P8 (C4.1, 4.2, 4.3, 4.5, 4.6), C5.5, P6 (6.5, 6.6, 6.7, 6.8, 6.9, 6.10, 6.11), P8 04.00- Interview with Presentation on audit 05.00pm Ribubonus estate‟s findings employees 08.00- Audit team discussion 10.00 pm
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Day four: 04 October 2009
Activities/ areas to Sabarinah Abd. Aziz Azhar Khoo Khay Jin Auditee be visited 08.00- Verification on all outstanding issues 12.00 pm Documentation review Audit team discussion and preparation on audit findings
12.00- Break 02.00pm 02.00- Continue with the above assessment 04.30 pm
Day five: 05 October 2009
Activities/areas to be visited Sabarinah Abd. Aziz Azhar Khoo Khay Jin Auditee
08.00-09.00 Discussion on audit findings for Ribubonus and Terusan certification units Relevant PIC am 09.00-11.00pm Interim closing meeting for Ribubonus and Terusan certification units Top mgmt & Committee Member 11.00-02.00pm Travel to Sandakan & Break
02.00-03.00pm Meeting with Financial Controller at Sandakan Office and verification on plan for other management unit & smallholder Top management certification
03.00-03.30pm Closing meeting for Ribubonus and Terusan certification unit Top mgmt & Committee Member 03.00pm Travel to Sandakan & End of assessment
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DETAIL OF NON-CONFORMITY AND CORRECTIVE ACTIONS TAKEN Attachment 3
P & C Specification Detail Non-conformances Corrective Action Taken Verification by Assessor Indicator Major/Minor
Criterion Major Fire certificate was not obtained. Application letter to Fire Sighted the letter from Fire Fighting and 2.1 Fighting and Rescue Rescue Department, Sandakan, Sabah Indicator There is no documented evidence Department, Sandakan, Sabah informing that the department has 2.1.1 that application being made for has been submitted on 10th received the application. Fire Certificate at Ribubonus mill. October 2009 and replied by the department. Pending for site inspection.
Criterion Safe operating procedures for Safe operating procedure for The established safe operating 4.1 Major working in confine space was not confined space has been procedure is found sufficient to ensure Indicator documented. established on 10th October safe working condition in confine space. 4.1.1 2009. No documented evidence on safe operating procedures for persons working in confine space (e.g. boiler service, cleaning of CPO storage tank) at Ribubonus and Terusan mills.
Indicator Major Mechanism to ensure outgoing i- a) Interim measure i-a) Additional machines were installed 4.4.3 water quality complied with the To improve the existing accordingly. required limit was not clearly aeration system an additional seen. mechanical machine was added i.e two unit surface i) Records showed that BOD & aerators, two unit floating COD discharges from mixers and six floating paddle Ribubonus mill exceeded the wheels. allowed limit. ii- b) Long term measure i- Ii-b) Verification through photograph and Department of Environment DOE field citation report showed (DOE) has given an approval to that the precommissioning of new Ribubonus mill to construct an ponds was held on 12th November additional six retention ponds at 2009.
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effluent treatment plant (ETP). Precommissioning of the new pond was held on 12th November 2009 with the DOE Officer. By then there will be no discharge for four to five months.
ii) Overflow of POME at the land To establish the pollution SOP for land irrigation system was application trenches in prevention plan established on 7th November 2009 which Terusan Estate. a) POME intervals to various covers the interval of POME application irrigation zones are formulated. to various zones and the monitoring b) Isolating valves for POME requirements. c) Established SOP for land irrigation system. Evidence of monitoring record sighted and photos of applied POME in accordance to their procedure were provided.
Criterion Major Scheduled waste was not 5.3 consistently managed in Indicator accordance to EQA Scheduled 5.3.2 Waste Regulations 2005.
For both Units: 1. Scheduled waste containers 1. Scheduled waste has been 1. Photograph shows scheduled waste were not adequately labeled. labelled as per regulations have been labeled in accordance with requirement. regulations
2. Notification of scheduled 2. Notification of scheduled 2. Notification of scheduled waste waste to DOE has not waste generation has been generation has been submitted to DOE covered all wastes submitted to DOE. on 20th & 26th October 2009 and generated by the mills and accepted by DOE. estates operation.
3. Inventory (5th Schedule) 3. To update the Inventory 3. Inventory records have been updated. were not adequately records (5th Schedule). transcribed.
4. Consignment Note (copy 4. To obtain copy of the 4. Copies of the consignment notes (6th from the disposal/treatment consignment note (6th Schedule) from the waste recovery plant
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centre) (6th Schedule) and Schedule) from the treatment have been obtained and Waste Waste information Card (7th recovery plant and to Information Card (7th Scheduled) for Scheduled) was not established waste information scheduled waste disposed has been available for waste that has (7th Scheduled) for waste that established. been disposed. has been disposed.
Criterion Major In both Terusan and Ribubonus The SOP for guaranteed week SOP for guaranteed week (SOP No. 6.5 Estates, there is only partial was established on 1st October HR/003) was established and Indicator compliance with the requirement 2009 as an immediate inconsultation with Labour Department 6.5.1 on guaranteed work week. response to the non conformity Sandakan, Sabah on 12th January 2010. raised during the assessment. In the event of workers are Verification through records i.e. master unable to complete a full day‟s It is deemed that the SOP is chit, daily checkroll and daily workers work, i.e, work for more than 4 clear and full understood by the activities report confirmed that the SOP hours, but less than a full day, estate‟s person-in-charge and it was implemented. daily rated workers are paid a full will be practiced accordingly. day‟s wage. However, for piece- rated workers, a minimum wage of RM14 a day is not provided.
Interviews with managers and workers confirmed on this practice. However, discussion with higher management revealed that it is their policy to pay a day‟s wage provided that the worker shows up for assembly.
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COMMENTS FROM STAKEHOLDER Attachment 4
List of Stakeholders Comment highlighted Verification A : Government Agencies/Service Provider Department of Occupational Terusan and Ribubonus Verification on records confirmed that Safety & Health (DOSH), complied with Occupational Ribubonus and Terusan are in compliance with Kota Kinabalu, Sabah. Safety and Health Act (OSHA) OSHA. Department of Environment There are occasions that ETP Ribubonus is committed to reduce BOD level (DOE), Kota Kinabalu, Sabah. discharges exceeded the below 20ppm by establishing a number of regulatory limit. mitigation plans. Among the plans include construction of additional effluent ponds and additional machines such as surface aerators, floating mixers and floating paddle wheel.
Labour Department, No issue None Sandakan, Sabah. Department of Agriculture No feedback from DOA Invitation for comment was announce in the (DOA) Kota Kinabalu & RSPO and SIRIM QAS website. Apart from Sandakan Branch, Sabah. that, invitation letters were sent and these were followed-up with telephone calls. Veterinary Department No issue None (Sandakan, Beluran and Telupid Branch), Sabah. Environmnetal Protection No issue None Department (EPD) (Sandakan and Kota Kinabalu Branch), Sabah. Forestry Department, Forestry Department has no Verification on Ribubonus and Terusan (Sandakan, Beluran and issue with Ribubonus and operation showed that they are committed in Telupid Branch) Sabah Terusan as long as their activity ensuring relevant forestry laws complied with. comply to the following: - No intrusion of forest reserve - No pollution of river especially those passing through the forest reserve - No incident that can cause fire in the forest reserve
Sabah Wildlife Department, No issue None Sandakan, Sabah Malaysian Palm Oil Board No issue None (MPOB), Kota Kinabalu and Sandakan Branch, Sabah. Immigration Department, No issue. None Sandakan, Sabah District Office Beluran, Sabah No issue None Employee Provident Fund No issue None (EPF), Sandakan, Sabah Social Security Organization No issue None (PERKESO),Sabah
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Sabah Land Development There are good collaboration None. Board (SLDB), Kota Kinabalu, between SLDB and PPBOP Sabah. with respect to oil palm plantation training (theory and practical) to the SLDB estates trainee in end of 1980‟s till early 2000.
Telupid Clinic, Telupid and No issue. Positive remarks were The assessment has verified that the Beluran District Health Office observed related to management of PPBOP are committed to Sandakan, Sabah. management of workers line provide necessary facilities and healthy living sites, clinic, workers health and environment for their employees. children nursery.
Police Beluran and Telupid No issue None Branch, Sandakan, Sabah Fire Fighting and Rescue Ribubonus mill has yet to apply Assessment confirmed the followings: Department (BOMBA), the fire certificate. - Ribubonus mill has yet to apply the fire Sandakan Branch, Sabah certificate from Fire Fighting and Rescue BOMBA have received Department (BOMBA) and nonconformity was application from Terusan raised. The mill has taken necessary corrective however there are certain fire action refer to Attachment 3. fighting facilities found not satisfactory. - Terusan has taken necessary action to upgrade the fire fighting facilities and currently awaiting inspection from BOMBA.
Seri Pembangunan Senior PPBOP has contributed The assessment has verified the PPBOP social Citizens House, Sandakan, equipment related to contribution. Sabah. occupational therapy on 2007.
Port and Harbour No issue None Department, Sandakan, Sabah Sabah Marine Department, No issue None Sandakan, Sabah Custom Department, No issue None Sandakan Sabah Sekolah Menengah Bintang No issue None Mas and Sekolah Menengah Telupid, Sabah. Sekolah Kebangsaan Bintang No issue None Mas and Sekolah Kebangsaan Telupid, Sabah
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B : Non-Governmental Organizations Borneo Child Aid Society, The society has worked Interviews with the HUMANA school teachers Sabah together with PPBOP for the and visit to the facilities showed that Terusan past three years to provide and Ribubonus are committed to continue education for the children of providing the services. plantation workers, who otherwise do not have access to school. As a commitment, PPBOP have constructed new classroom buildings at Terusan and Ribubonus, where currently classes have started daily for free of charge. This learning centre is one of the best facilities for the plantation children in Sabah.
Sahabat Alam Malaysia, No issue None Marudi, Sarawak. World Wildlife Fund for Nature Buffer zone, mill effluent The assessment has verified the said issues (WWF), Malaysia. discharge and HCV issues to be and highlights the findings in the report. verified during the assessment
Pesticide Action Network Informing the recent audit by The assessment team is aware on the issue (PAN) Asia and Pacific, the World Bank‟s IFC of a and verified the matters with PPBOP. Malaysia. Wilmar Plantation in Indonesia.
Tenaganita, Kuala Lumpur, No issue None Malaysia. Borneo Conservation Trust No feedback from the BCT Invitation for comment was announce in the (BCT), Kota Kinabalu, Sabah, RSPO and SIRIM QAS website. Apart from Malaysia. that, letters were sent and these were followed- up with telephone calls.
Sawit Watch, Bogor, Wilmar group (Indonesia) is The assessment team is aware on the issue Indonesia. under the RSPO grievance and verified the matters with PPBOP. process.
Wetland International, No issue None Selangor, Malaysia Partners of Community Collaborate with JOAS in Consultation with representative of Organizations (PACOS providing advice to the JOAS/PACOS reveled that broad claim on land Trust), Sabah, Malaysia. indigenous communities has been registered which might affect regarding native customary Ribubonus and documentation relating to it rights and upgrade their quality was sighted. of lives. The representative also confirmed that the potential claimants are now gathering evidence to support their claim. Aidenvironment, South East No issue None Asia.
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The Hospice Association of No issue None Sandakan, Sabah, Malaysia. Sabah Cheshire Home PPBOP has actively The assessment has verified the PPBOP social (Sandakan and Kota participated in activity organized contribution. Kinabalu), Sabah, Malaysia. by the society such as resident adoption scheme, golf tournament and contributed in term of monetary.
Sabah Society for the Blind, No feedback from the Sabah Invitation for comment was announce in the Sandakan, Sabah, Malaysia. Society for the Blind. RSPO and SIRIM QAS website. Apart from that, letters were sent and these were followed- up with telephone calls.
Malaysian Palm Oil No issue None Association (MPOA), Sandakan, Sabah, Malaysia. East Malaysia Planters‟ No issue None Association, Sandakan, Sabah, Malaysia. The Sabah Employees No feedback from SECA Invitation for comment was announce in the Consultative Association RSPO and SIRIM QAS website. Apart from (SECA) that, invitation letters were sent and these were followed-up with telephone calls.
Incorporated Society of No issue None Planters (ISP), Sandakan, Sabah, Malaysia. C : Local Communities Terusan certification unit : Kampung Lubuk Dungun Commented on over planting Terusan is aware of the matter and has taken corrective action by demarcating the area and cease its operation on this land. Kampung Peranchangan Resolved, following discussions between Land dispute. This is a long- Terusan and the villagers. Application has been standing dispute, a carry-over Kampung Nangoh made for excision from Terusan and for title to from when the land was under be given to the villagers. This is waiting official the Sabah Land Development approval. There are documentation on this Kampung Gana Jati Board. matter.
Kampung Lidong No issue None Ribubonus certification unit : Kampung Baba The residents appreciate the None. ferry service provided. It is an essential link. They also appreciate the road link through Ribubonus Estate.
Kampung Ensuan No issue. None.
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Kampung Gambaron The representative of village Management has issued instructions to ferry head commented that the ferry workers to ensure that the ferry operation cables sometimes can be an would not obstruct the boats operation. obstruction to boats.
Kampung Gading The Chairperson of the JKKK Ribubonus is open for dialogue and expressed villagers hope for discussions relating to water supply. cooperation and assistance Ribubonus have conducted a series of water when they develop their land sampling and reports are available. abutting on Ribubonus. They hope that small streams won‟t be disturbed as villagers use them for water supply when they are at their farms huts.
Some villagers may be part of The issue will be verified in the next claimant on potential land assessment should there be any progress on dispute initiated by Kg Telupid the claim. Batu 4 (below).
Kampung Wonod The village representative None expressed appreciation on assistance from PPBOP for disabled person.
There is also comment Meeting minutes on this matter was sighted. regarding effluent discharges. Ribubonus has taken action by inviting few communities around them to participate in stakeholder consultation. Explanation on action taken by RPOM to mitigate the discharges issue was made.
Currently the issue has been rectified. Cross refer to nonconformity raised under C.4.4.3 in attachment 3. Kampung Telupid (Batu 4) There is a possible of land The assessment uncovered a potential dispute dispute affecting Ribubonus; over Ribubonus Estate. Although the potential one of the former headman is claimants have registered a broad unspecified now the resource person for the interest, they were still in the process of committee to establish claim. establishing their claim, which is gathering evidence on it and had not communicated it to Ribubonus Estate.
This was confirmed by their advisor, a representative from JOAS/PACOS.
Ribubonus management are open to dialogue and discussion if and when the claim impacts on Ribubonus.
The issue will be verified in the next assessment should there be any progress on the claim.
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D : Other interested parties Terusan/Ribubonus Palm Oil No issue None Mill - canteen operator Terusan/Ribubonus Palm Oil No issue None Mill - Workers‟ representative Terusan/Ribubonus Estate - No issue None Workers‟ representative Terusan Palm Oil Mill - FFB No issue None suppliers Ribubonus - Provision shop No issue None operator Terusan/Ribubonus - No issue None Chairman of Women and Children Committee Terusan/Ribubonus - Labour No issue None line contractor
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