SIME DARBY PLANTATION SDN BHD
RSPO Membership No: 1 0008 04 000 00
PLANTATION MANAGEMENT UNIT SOU 21 Gunung Mas Grouping Kluang, Paloh & Yong Peng, Johor, Malaysia
INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296 W)
Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd Page 2 of 49 SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope
ANNUAL SURVEILLANCE ASSESSMENT (ASA-04) CUM EXTENSION OF SCOPE ON RSPO CERTIFICATION
ASSESSMENT REPORT
SIME DARBY PLANTATION SDN BHD
RSPO Membership No: 1 0008 04 000 00
PLANTATION MANAGEMENT UNIT SOU 21 Gunung Mas Grouping Kluang, Paloh & Yong Peng, Johor, Malaysia
Certificate No: RSPO 901888 Issued date: 19 May 2010 Expiry date: 18 May 2015
Assessment Type Assessment Dates Initial Certification (Main Assessment) 18 – 20 Feb 2009 Annual Surveillance Assessment (ASA 01) 16 – 18 Feb 2011 Annual Surveillance Assessment (ASA 02) 03 – 06 April 2012 Annual Surveillance Assessment (ASA 03) 18 – 22 Feb 2013 Annual Surveillance Assessment (ASA 04) 11 – 14 March 2014 cum Extension of Scope Re Certification
Intertek Certification International Sdn Bhd (formerly known as Moody International Certification (Malaysia) Sdn Bhd) 6 L12 01, Level 12, Tower 2, Menara PGRM No. 6 & 8 Jalan Pudu Ulu, Cheras, 56100 Kuala Lumpur, Malaysia. Tel: +00 (603) 9283 9881 Fax: +00 (603) 9284 8187 Email: [email protected] Website: www.intertek.com
Intertek RSPO Report: April 2014
INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296 W)
Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd Page 3 of 49 SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope
TABLE OF CONTENTS
Section Content Page No 1.0 SCOPE OF ANNUAL SURVEILLANCE ASSESSMENT (ASA-04) CUM
EXTENSION OF SCOPE 1.1 Introduction 4 1.2 Location (address, GPS and map) mill, estates and hectarage 4 1.3 Description of supply base (fruit sources) 5 1.4 Year of plantings and cycle 5 1.5 Summary of Land Use – Conservation and HCV Areas 6 1.6 Other certifications held and Use of RSPO Trademarks 6 1.7 Organizational information/contact person 6 1.8 Tonnages Verified for Certification 7 8 1.9 Time Bound Plan 8 1.10 Abbreviations Used 9 2.0 ASSESSMENT PROCESS 2.1 Assessment Methodology, Plan & Site Visits 10 2.2 Date of next scheduled visit 10 2.3 Qualifications of the Lead Assessor and Assessment Team 10 2.4 Certification Body 10 11 2.5 Process of Stakeholder consultation 11 12 3.0 ASSESSMENT FINDINGS 3.1 Summary of findings 13 43 3.2 Status of Identified Noncompliance and Corrective Actions, Observations and 43 45 Identified Positive Elements 3.3 Summary of Feedback Received from Stakeholders and Findings 46 47 4.0 ASSESSMENT CONCLUSION AND RECOMMENDATION 4.1 Acknowledgement of Internal Responsibility and Confirmation of Assessment Findings 47
4.2 Intertek RSPO Certification Details for SOU 21 Gunung Mas grouping 48 49
APPENDICES Appendix Page Appendix A Qualifications of the Lead Assessor and Assessment Team 1 Appendix B Assessment Plan 2 3 Appendix C Maps of location – Mill, Estates, Conservation and HCV areas 4 8 Appendix D Photographs of Assessment findings at SOU 21 Gunung Mas Grouping 9 Appendix E Time Bound Plan for Other Plantation Management Units 10 11
Intertek RSPO Report: April 2014
INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296 W)
Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd Page 4 of 49 SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope
1.0 SCOPE OF ANNUAL SURVEILLANCE ASSESSMENT (ASA-04) CUM EXTENSION OF SCOPE
1.1 Introduction This Annual Surveillance Assessment (ASA 04) cum Extension of Scope was conducted on the Plantation Management Unit (PMU) SOU 21 Gunung Mas grouping of Sime Darby Plantation Sdn Bhd (hereafter abbreviated as SDPSB), from 11 – 14 March 2014 , to assess if the organization’s operations of the mill and its supply bases were in compliance against the RSPO Principles and Criteria (April 2013), Malaysian National Interpretation (November 2010) and the RSPO Supply Chain Certification Standard (November 2011) for Palm Oil Mill. This assessment also includes a review of the changes made by the PMU to comply with the requirements of the ratified new RSPO Principles and Criteria (effective 25 April 2013). It was found that the PMU is aware of the new RSPO Principles and Criteria and the transition period for compliance but has not yet make the necessary changes required. The Extension of Scope is for the purpose of adding the Yong Peng Estate as part of of this PMU. This estate was certified by BSI under the PMU SOU 19A of Sime Darby Plantation Sdn Bhd.
The plantation management unit (PMU) or management unit is equivalent to a certification unit as defined in the RSPO Certification Systems Document. Each PMU consists of one mill and its supply bases which are made up of estates owned by Sime Darby Plantation Sdn Bhd (SDPSB)
1.2 Location (address, GPS and map) of palm oil mill and estates SOU 21 Gunung Mas grouping consists of one (1) palm oil mill, namely SOU 21 Gunung Mas Palm Oil Mill and four (4) estates as indicated in Table 1 below, which includes the addresses and GPS locations of the mill and estates. The location maps are provided in Appendix C.
Table 1: Address of Palm Oil Mill, Estates and GPS Location
GPS Reference Name Address Latitude Longitude
Gunung Mas Palm Oil Mill KKS Gunung Mas, K/B No. 524, 86009 2.344º N 103.138º E (POM capacity: 60mt/hr) Kluang, Johor, West Malaysia. Gunung Mas Estate Ladang Gunung Mas, K/B No. 512, 2.248º N 103.149º E (to be assessed in Re- 86009 Kluang, Johor, West Malaysia. certification Assessment) Kempas Klebang Estate Ladang Kempas Klebang, K/B No 105, 2.218º N 103.172º E (assessed in ASA-04) 86009 Paloh, Johor, West Malaysia. Bukit Paloh Estate Ladang Bukit Paloh, K/B No 107, 86009 2.140º N 103.175º E (to be assessed in Re- Paloh, Johor, West Malaysia. certification Assessment)
Yong Peng Estate Ladang Yong Peng, 83700 Yong Peng, 2.085º N 103.143º E (assessed in ASA-04) Johor, West Malaysia.
Intertek RSPO Report: April 2014
INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296 W)
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1.3 Description of supply base (fruit sources)
The supply base, i.e. FFB sources to the POM at SOU 21 Gunung Mas Grouping are from the abovementioned four estates and other certified estates of Sime Darby Plantation Sdn Bhd. POM further confirmed that for period FY2013 2014, the PMU has not taken any FFB crop from outgrowers / independent suppliers / smallholders.
Details of the planted hectarage for the FFB supply for SOU 21 Gunung Mas grouping are as shown in Table 2 below.
Table 2: Estate Area Summary – 2013 / 2014
Area Summary (ha) – 2013 / 2014 Estate Certified Area Planted Area Gunung Mas Palm Oil Mill Gunung Mas Estate 3,472.70 2,981.88 Kempas Klebang Estate 2,473.50 2,205.83 Bukit Paloh Estate 3,082.83 2,828.66 Yong Peng Estate 3,381.23 3,127.59 Total: 12,410.26 11,143.96 Percentage: 100% 89.80% Notes: 1. This Annual Surveillance Assessment (ASA 04) cum Extension of Scope covered the overall land use for oil palm plantation areas, and the identified Conservation areas including HCV areas marked out at the estates. 2. The estates sampled for this Annual Surveillance Assessment (ASA 04) cum Extension of Scope have been selected based on their potential risks on social, environmental and biodiversity issues such as their proximity to forest reserves, hill sides, riparian zones and high conservation value areas. 3. Yong Peng Estate is now included as part of this PMU. This estate was previously certified by BSI under SOU19A – 28 October 2010.
1.4 Summary of plantings and cycle The 4 estates been developed beginning from 1987 and the latest being from 2012 (Re planting) and are all currently in the 1st and 2 nd cycle of planting for the Oil Palms. The age profile is as shown in Table 3.
Table 3: Age Profile of Planted Oil Palm 2013 / 2014
Mature OP (ha) Immature OP (ha) Estate Name Year of Planting Cycle of Planting – Above 3 years – 3 years & below
2009 – 2012 2nd cycle Gunung Mas Estate st 2,677.14 304.74 1987 2008 1 cycle 2012 2nd cycle Kempas Klebang Estate 2,130.91 74.92 1991 2005 1st cycle nd 2009 – 2012 2 cycle Bukit Paloh Estate 2,601.13 1987 2008 1st cycle 227.53 Yong Peng Estate 1993 2008 2nd cycle 2,823.97 303.62 Total 10,233.15 910.81 Note: There is no New Planting in any of the 4 estates of the certified areas since 1987.
Intertek RSPO Report: April 2014
INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296 W)
Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd Page 6 of 49 SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope
1.5 Summary of Conservation and HCV Areas The summary of Conservation and HCV Areas as identified in SOU 21 Gunung Mas grouping during this Annual Surveillance Assessment (ASA 04) cum Extension of Scope in 2014 is as shown in Table 4 below:
Table 4: Conservation and HCV Areas
# Statement of Land Use (Ha) 2012 / 2013 2013 / 2014 (Annual Surveillance (Annual Surveillance Assessment ASA-03) Assessment ASA-04) Hectarage – Ha Hectarage – Ha 1 Planted Area (ha) – Oil Palm
• Mature 7,373.51 10,233.15
• Immature 642.86 910.81 2 Conservation Area (ha)
• comprising buffer zones along small streams, hilly 58.66 58.66 areas, swampy and unplantable areas 3 HCV Area (ha)
• comprising buffer zones near forest reserves, water 70.45 70.45 catchments, burial & religious sites
1.6 Other certifications held and Use of RSPO Trademarks There are currently no other certifications held by SDPSB SOU 21 Gunung Mas grouping PMU. The RSPO’s trademarks and logo are not being used by the PMU audited. Instructions for use were provided and acknowledged by the PMU through a signed Memorandum of commitment agreeing to adhere to the latest “RSPO Rules on Communications & Claims”.
1.7 Organizational information / Contact Person
At Head Office: Ms Sabrinah binti Marzuky Vice President II – Certification and Compliance Unit Sime Darby Plantation Sdn Bhd Wisma Guthrie, 21, Jalan Gelenggang, Bukit Damansara, 50490 Kuala Lumpur, Malaysia Tel: 03 78484000 Fax: 03 78484356 Email: [email protected] Name: Abdullah Bin Saminan Senior Manager Ladang Gunung Mas, K/B No. 512, 86009 Kluang, Johor, West Malaysia Tel: 07 9341207 Fax: 07 9342427 Email: [email protected]
Intertek RSPO Report: April 2014
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1.8 Tonnages Verified for Certification
The breakdown of all the suppliers and their tonnages of FFB supplied to the POM at SOU 21 Gunung Mas grouping based on the reporting period for 2013 / 2014 (July 2013 Feb 2014, actual and Mar 2014 – June 2014, projected) are as follows:
FFB Processed # Estate /Supplier Main Receiving Mill Certified By (MT) Gunung Mas Palm 1. Gunung Mas Estate 61,897.26 Intertek ( 19 May 2010) Oil Mill Gunung Mas Palm 2. Kempas Klebang Estate 52,217.31 Intertek ( 19 May 2010) Oil Mill Gunung Mas Palm 3. Bukit Paloh Estate 67,246.00 Intertek ( 19 May 2010) Oil Mill Gunung Mas Palm Previously by BSI under SOU19A – 28 4. Yong Peng Estate 61,853.05 Oil Mill October 2010 Sub-total PMU own 243,213.62 estates 5. Simpang Kiri Estate 89.73 Chaah Palm Oil Mill BSI (18 November 2011) Lambak Estate Bukit Benut Palm CUC (05 October 2011) 6. 2,558.40 Oil Mill Bukit Benut Estate Bukit Benut Palm CUC (05 October 2011) 7. 959.58 Oil Mill Sg. Gemas Estate Kok Foh Palm Oil Intertek (7 July 2012) 8. 156.62 Mill Senarut Estate Kok Foh Palm Oil Intertek( 7 July 2012) 9. 102.17 Mill Sg. Labis & Sg Labis 10. 39,637.76 Chaah Palm Oil Mill Utara Estate BSI (18 November 2011) Bukit Benut Palm CUC (05 October 2011) 11. CEP Nyior Estate 29,306.96 Oil Mill Kok Foh Palm Oil Intertek (7 July 2012) 12. Muar River Estate 359.69 Mill 13. Chaah Estate 516.32 Chaah Palm Oil Mill BSI (18 November 2011) Sub-total other certified Sime Darby 73,687.20 estates
Grand total 316,900.82
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Total annual volumes / tonnages of FFB supplied from the supply base to SOU 21 Gunung Mas grouping POM during the previous period, current Annual Surveillance Assessment (ASA 04) cum Extension of Scope period and projected period are as follows:
FFB Processed in FFB Processed for FFB Processed in Estate / Supplier 2013 / 2014 2014 / 2015 2012 / 2013 - Actual + Projected - Projected MT % MT % MT % SOU 21 Gunung Mas 191,346.26 66.71 *243,213.62 76.75 *267,703.77 80.26 grouping Other certified Sime 95,507.84 33.29 73,687.20 23.25 65,834.88 19.74 Darby estates Other Suppliers (OCP) 0.00 0.00 0.00 0.00 0.00 0.00 Total 286,854.10 100 316,900.82 100 333,538.65 100 SCCS Model for POM SG SG SG *Note: This figures include Yong Peng which is now under the SOU 21 Gunung Mas grouping FFB Processed in 2013 / 2014- Actual + Projected and projected figures for 2014 / 2015
The annual certifiable tonnages of CPO and PK production by SOU 21 Gunung Mas grouping from the supply base/suppliers as assessed and verified during the current Annual Surveillance Assessment (ASA 04) cum Extension of Scope (based on 2013 / 2014 data) are detailed as follows:
2013 / 2014 2014 / 2015 POM 2012 / 2013 - Actual + Projected - Projected Total FFB 286,854.10 316,900.82 333,538.65 Processed (MT) Total CPO 63,308.70 OER: OER: OER: 71,302.68 75,046.20 Production (MT) 22.07% 22.50% 22.50% Total PK 15,776.98 KER: KER: KER: 17,429.55 18,344.63 Production (MT) 5.50% 5.50% 5.50%
Note: Currently, the POM has established and maintained procedures for the book keeping and monitoring requirements for the CPO at the mill and was verified to be adopting the ‘Segregation – SG’ model in accordance with the RSPO Supply Chain Certification Standard (SCCS) requirements. Verified activities and checked items for the SCCS of the POM are reported in section.3.1.1.
1.9 Time Bound Plan for Other Plantation Management Units
SDPSB Group operates 59 palm oil mills and 200 oil palm estates and schemes throughout Malaysia & Indonesia (as per updated on 21 March 2014). The organization is a member of RSPO since 8 th September 2004 and has been taking an active role in the RSPO certification. Currently, a significant number of its Certification Units is undergoing the RSPO certifying process in accordance with its time bound plan and has completed RSPO certification for all SOU’s. Based on the due diligence conducted on Sime Darby Plantation Sdn Bhd there were no significant land conflicts, no replacement of primary forest or any area containing HCVs since November 2005, no labour disputes that are not being resolved through an agreed process, no evidence of non compliance with law in any of the non certified holdings. (Source: http://www.simedarbyplantation.com/Sime_Darby_Plantation_in_Malaysia.aspx ).
Details of the time bound plan as submitted by SDPSB are as per Appendix E.
Intertek RSPO Report: April 2014
INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296 W)
Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd Page 9 of 49 SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope
1.10 Abbreviations Used
CB Certification Body LTA Lost Time Accidents CHRA Chemical Health & Risk Assessment Intertek Intertek Certification International Sdn Bhd CPO Crude Palm Oil MSDS Material Safety Data Sheets CSDS Chemical Safety Data Sheets MTCS Malaysia Timber Certification Scheme CSPO Certified Sustainable Palm Oil NCR Non Conformance Report CSPK Certified Sustainable Palm Kernel NGO Non Government Organization EFB Empty Fruit Bunch OER Oil Extraction Rate EHS Environmental Health & Safety OHS Occupational Health & Safety EIA Environmental Impact Assessment PEFC Programme for the Endorsement of Forest Certification ETP Effluent Treatment Plant PK Palm Kernel FFB Fresh Fruit Bunch PMU Plantation Management Unit GAP Good Agriculture Practice POM Palm Oil Mill HCV High Conservation Values POME Palm Oil Mill Effluent IPM Integrated Pest Management PPE Personal Protective Equipment ISCC International Sustainability & Carbon Certification SCCS Supply Chain Certification Standard IUCN International Union for Conservation of Nature SDPSB Sime Darby Plantation Sdn Bhd KER Kernel Extraction Rate SOP Standard Operating Procedures
Intertek RSPO Report: April 2014
INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296 W)
Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd Page 10 of 49 SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope
2.0 ASSESSMENT PROCESS
2.1 Assessment Methodology, Plan and Site Visits
Since 29 January 2014, Intertek has initiated public communications and notifications and invited the relevant stakeholders before the assessment to provide feedback and comments on their concern (if any) on SOU 21 Gunung Mas grouping regarding the environmental, biodiversity, community development and other relevant issues.
From 11 – 14 March 2014, the Assessment team of Intertek conducted the Annual Surveillance Assessment (ASA 04) cum Extension of Scope in which 2 out of the 4 estates of SOU 21 Gunung Mas grouping namely Kempas Klebang estate and Yong Peng as well as the palm oil mill were assessed for compliance against the RSPO requirements. The number of estates sampled was based on a minimum sample of 0.8√y where y is the number of management sub units and the selection was made based on their potential risks on social, environmental and biodiversity issues such as their proximity to forest reserves, hill sides, riparian zones and high conservation value areas.
During the on site assessment, relevant documents and records, including Standard Operating Procedures (SOP), management plans, hectarage development, FFB, CPO and PK production, oil palm age profile, operational controls and measures, operational data and records, training records, etc. were reviewed and verified for compliance. The Assessment team using the process approach auditing technique covered the palm oil mill and estate operations, agricultural practices, pest management, pesticide and fertilizer application, occupational health and safety, social accountability, environment and other requirements. Stakeholders’ interviews were conducted during the assessment and feedback obtained as part of information and evidence gathering. (See section 2.5 Process of stakeholder consultation).
SOU 21 Gunung Mas grouping POM was also assessed against the requirements for the Segregation Module as specified in RSPO Supply Chain Certification Standard for CPO mill. This part of the assessment covered the verification of implementation of documented procedures and availability of records to demonstrate compliance against all the elements for Segregation requirements. These include documented procedure, purchasing and goods in, record keeping, sales and goods out, processing, monitoring and traceability of the CSPO and CSPK quantities, training for staff and claims.
After completion of the on site field assessment, Intertek also performed the evaluation of conformity against the RSPO Certification System requirements for CB. The assessment report, findings and associated documents were evaluated through an independent review by the Intertek Internal Evaluation Panel prior to submission of the Assessment Report to RSPO Secretariat for approval.
The details of the Assessment Plan (actual on site) are provided in Appendix B.
2.2 Date of next scheduled visit
The next scheduled visit will be the Re Certification Assessment which will be carried out within a 9 to 12 months period after RSPO acceptance of this report and before the expiry of the certificate.
2.3 Qualifications of the Lead Assessor and Assessment Team
Competency details of the Lead Assessor and Assessment Team are given in Appendix A.
2.4 Certification Body
Intertek Certification International Sdn Bhd [formerly known as Moody International Certification (Malaysia) Sdn Bhd] is part of the Intertek Group, which is a worldwide technical services organization dedicated to reducing clients' risks by providing technical inspection services, management system certification in quality, environmental,
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Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd Page 11 of 49 SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope occupational safety & health and product certification, RSPO SCC, ISCC, Marine Sustainability Chain of Custody, MTCS and PEFC Chain of Custody certification in applicable industry sectors including the agricultural and forestry sectors. Intertek operates globally providing clients with a wide ranging technical inspection expertise and access to thousands of skilled specialists worldwide. Intertek Group’s certification business is ranked in the top 10 worldwide, and is available globally offering certification across a wide range of industries.
2.5 Process of stakeholder consultation
Stakeholder consultations began with notification of the upcoming assessment through the websites of RSPO, SDPSB and Intertek. E mails, facsimiles and letters of the same were sent to applicable stakeholders including government agencies, NGOs and local communities. Telephone enquiries were made prior to the actual assessment and stakeholder’s response and feedback received were followed up accordingly.
During the assessment, stakeholders were interviewed and their feedbacks were recorded. Among the stakeholders consulted were workers, trade union leaders, women representatives; local community leaders, representatives of government departments / agencies and NGOs; external FFB suppliers, fertilizer suppliers and contractors.
Details on stakeholders’ feedback, PMU response and Intertek verification / comments are provided in section 3.3.
Among the list of key stakeholders consulted was the following:
Government Agencies (by emails) 1. Department of Lands And Mines (Kuala Lumpur) 10. Department of Environment (Johor) 2. Department of Environment (Kuala Lumpur) 11. Department of Forestry (Johor) 3. Department of Forestry Peninsular Malaysia 12. Department of Immigration (Johor) (Kuala Lumpur) 4. Department of Immigration (Kuala Lumpur) 13. Department of Irrigation & Drainage (Johor) 5. Department of Irrigation & Drainage (Kuala 14. Department of Labour (Johor) Lumpur) 6. Department of Labour (Kuala Lumpur) 15. Department of Occupational Safety & Health (Johor) 7. Department of Occupational Safety & Health 16. Department of Wildlife & National Parks (Johor) (Kuala Lumpur) 8. Department of Orang Asli Affairs (Kuala Lumpur) 17. Land and Mines Office (Johor) 9. Department of Wildlife & National Parks 18. Pertubuhan Keselamatan Sosial (SOCSO) (Johor) 19. Pejabat Buruh (Johor)
Statutory Bodies (by emails) 25. Malaysian Palm Oil Board (MPOB) Sarawak 20. Malaysian Palm Oil Board (MPOB) Region 21. Malaysian Palm Oil Board (MPOB) Northern 26. Malaysian Palm Oil Board (MPOB) Sabah Region Region 22. Malaysian Palm Oil Board (MPOB) Central 27. Malaysia Palm Oil Association (MPOA) Region 23. Malaysian Palm Oil Board (MPOB) Southern 28. Malaysia Palm Oil Association Kuala Lumpur Region (MPOA) 24. Malaysian Palm Oil Board (MPOB) Eastern 29. Malaysia Palm Oil Association Sabah (MPOA) Region
NGOs (by emails) 30. All Women’s Action Society (AWAM) 60. Malaysian Nature Society Miri 31. BCSDM Business Council for Sustainable 61. Malaysian Nature Society Pahang Development in Malaysia 32. Borneo Child Aid Society (Humana) 62. Malaysian Nature Society Perak 33. Borneo Resources Institute Malaysia (BRIMAS) 63. Malaysian Nature Society Pulau Pinang 34. Borneo Rhino Alliance (BORA) 64. Malaysian Nature Society Sabah 35. Center for Orang Asli Concerns COAC 65. Malaysian Nature Society Terengganu 36. Centre for Environment, Technology and 66. Malaysian Plant Protection Society (MAPPS) Development, Malaysia CETDEM 37. Consumers Association Of Penang CAP 67. Mountaineering and Outdoor Pursuits Association of
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Negeri Sembilan 68. National Council of Welfare & Social Development 38. EcoKnights Malaysia NCWSDM 39. Environmental Management and Research 69. Sabah Wetlands Conservation Society (SWCS) Association of Malaysia (ENSEARCH) 40. Environmental Protection Society Malaysia 70. SEPA Sabah Environmental Protection Association (EPSM) 41. Friends of the Earth, Malaysia 71. SUARAM Suara Rakyat Malaysia 72. SUHAKAM National Human Rights Society 42. Future in Our Hands Society, Malaysia Persatuan Kebangsaan Hak Asasi Manusia 73. Sustainable Development Network Malaysia 43. Global Environment Centre (SUSDEN) 44. HUTAN Kinabatangan Orang utan Conservation 74. Tenaganita Sdn Bhd Programme 75. The Malaysian Forum of Environmental Journalist 45. Institute of Foresters, Malaysia (IRIM) (MFEJ) 76. TRAFFIC Southeast Asia Wildlife trade & 46. JUST International Movement for a Just World trafficking monitoring programme 47. Malaysian Environmental NGOs MENGO 77. Transparency International Malaysian Chapter 48. Malaysian National Animal Welfare Foundation 78. Treat Every Environment Special Sdn Bhd. (TrEES) MNAWF 79. United Nations Development Programme UNDP 49. Malaysian Nature Society (MNS) Kuala Lumpur Malaysia 50. Malaysian Nature Society Johor 80. Water Watch Penang (WWP) 51. Malaysian Nature Society Kedah 81. Wetlands International (Malaysia) 52. Malaysian Nature Society Kelantan 82. Wild Asia Sdn Bhd 53. Malaysian Nature Society Kuching 83. World Wide Fund for Nature (WWF) Malaysia 54. Malaysian Nature Society Melaka/Negeri 84. World Wide Fund of Nature (WWF) Sabah Sembilan 55. National Union of Plantation Workers (NUPW) 85. UNION – AMESU 86. Malaysian CropLife & Public Health Association 56. Partners of Community Organisations (PACOS) (MCPA) 57. Penang Institute previously known as Socio 87. Pesticide Action Network Asia and the Pacific (PAN Economic & Environmental Research Institute AP) (SERI) 58. Proforest South East Asia Regional Office 88. ENO Asia Environment 59. R.E.A.C.H. Regional Environmental Awareness
Cameron Highlands
Local community (On site interviews) Gender representatives Suppliers / Contractors Workers representatives Village Heads
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3.0 ASSESSMENT FINDINGS
3.1 Summary of findings
Principle 1: Commitment to transparency
Criterion 1.1 Growers and millers provide adequate information to relevant stakeholders on environmental, social and legal issues relevant to RSPO Criteria, in appropriate languages and forms to allow for effective participation in decision making. Indicators Findings and Objective Evidence Compliance 1.1.1 There shall be evidence that Documented SOPs Appendix 5 –Handling Social Issues Complied growers and millers provide and SOP Appendix 5.5.3.2 Procedure for External adequate information on Communication for providing feedback and handling (environmental, social and/or legal) queries, responses and requests have been maintained at issues relevant to RSPO Criteria to relevant stakeholders for effective SOU21. Records of meetings and correspondences with participation in decision making. stakeholders have also been maintained for FY Jul 2013 Jun 2014. The mill and estate management have
responded effectively and constructively to Major Compliance requests/queries from their stakeholders. This was apparent from records sighted which included minutes of meetings held with the local authorities, union committees and local community leaders. The latest stakeholder meeting was dated 17 Feb 2014 and records of requests and responses have been suitably maintained. 1.1.2 Records of requests for The PMU maintained an updated list of internal Complied information and responses shall be stakeholders, external stakeholders, government maintained. departments/agencies, consultants, contractors, suppliers, transporters, etc. Major / Minor - TBF Stakeholders meeting held on 17 Feb 2014 with records of stakeholders’ feedback. Stakeholders’ requests were attended to and no negative remarks or complaints/ grievances were found. Criterion 1.2 Management documents are publicly available, except where this is prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes. Indicators Findings and Objective Evidence Compliance 1.2.1 Publicly available documents SDPSB’s policies were effectively displayed on notice Complied shall include, but are not boards and at accessible locations at the SOU21 Mill and necessarily limited to: Estates’ offices. The locations include the Mill and Estate offices, the Mill Plant areas as well as certain locations at Major Compliance the exterior of the Mill and Estate offices. Policies are available in English and Bahasa Malaysia.
• Land titles/user rights (Criterion All the mandatory types of documents were available both 2.2); in hard and soft copy. These have been maintained and adequately updated at the company’s website.
The following types of mandatory documents are available to the public as required:
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• land titles/user rights, • occupational health and safety plan, • plans and impact assessments relating to environment and social impacts, • pollution prevention plans, • details of complaints & grievances, • negotiation procedures • continuous improvement plan
Land titles/user rights have been maintained adequately. No outstanding issues have arisen since the previous audit. • Occupational health and safety Environment, Safety and Health (ESH) Plan have been Complied plans (Criterion 4.7); established and implemented for FY Jul 2013 Jun 2014. See C 4.7 • Plans and impact assessments Management plans for social and environmental impacts Complied relating to environmental and social assessment have been established and implemented for impacts FY Jul 2013 Jun 2014. These plans have been monitored (Criteria 5.1, 6.1, 7.1 and 7.8); and action plans have been maintained by the respective Mill /Estate Managers as well as the Social and Environment Officers at the respective Estates /Mills at SOU 21..
• HCV documentation (Criteria 5.2 HCV Management Action Plans found to be reviewed and Complied and 7.3); updated by SDPSB Sustainability Team in 2014. • Pollution prevention and reduction Management plans for Pollution prevention plans have Complied plans (Criterion 5.6); been established for FY Jul 2013 Jun 2014. • Details of complaints and Details of complaints and grievances for FY Jul 2013 Jun Complied grievances (Criterion 6.3); 2014 have been addressed in the stakeholders meetings.
• Negotiation procedures (Criterion Negotiation SOPs App3 of Sime Darby Plantation Quality Complied 6.4); Management System Manual have been maintained. Current document in the Sime Darby Plantation QMS Manual is dated 01 Nov 2008. • Continual improvement plans Management Plans for continual improvement have been Complied (Criterion 8.1); established for social, safety & health, environmental impacts, pollution prevention and mill/estate operations for FY Jul 2013 Jun 2014. See 8.1.1 to 8.1.6. • Public summary of certification Public summary of certification assessment report to be Complied assessment report; made publicly available as per usual RSPO procedure. • Human Rights Policy (Criterion Human Rights Policy in process of being documented and New requirement 6.13). communicated to all levels of the workforce and of RSPO P&C operations. (2013) Follow up action at next audit.
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Criterion 1.3 Growers and millers commit to ethical conduct in all business operations and transactions. Indicators Findings and Objective Evidence Compliance 1.3.1 There shall be a written policy Policy of commitment to a Code of Ethical Conduct and New requirement committing to a code of ethical Integrity in process of being documented and of RSPO P&C conduct and integrity in all communicated to all levels of the workforce and (2013) Follow up operations and transactions, which operations. action at next shall be documented and communicated to all levels of the ASA. workforce and operations.
Major / Minor (TBF)
Principle 2: Compliance with applicable laws and regulations Criterion 2.1 There is compliance with all applicable local, national and ratified international laws and regulations. Indicators Findings and Objective Evidence Compliance 2.1.1 Evidence of compliance with Permits and licenses required for mill and estates in SOU 21 Complied relevant legal requirements shall were available, displayed and renewed/updated at the respective be available. mill and estate office(s). Examples of permits and licenses verified were the DOE prescribed premise license for the mill, Major Compliance scheduled waste disposal by licensed contractors, local government business license for the current year, payment of land tax for mill and estates. 2.1.2 A documented system, which The documented system established had been maintained and Complied includes written information on implemented. legal requirements, shall be maintained.
Minor Compliance 2.1.3 A mechanism for ensuring Evaluation of compliance against legal requirements is Complied compliance shall be implemented. conducted annually and the latest was conducted Dec. 2013 for the estates and mill in SOU 21. Minor Compliance 2.1.4 A system for tracking any Noted applicable local, national and ratified international laws Complied changes in the law shall be were reviewed to ensure that they are current and updated in the implemented. legal register in Dec. 2013.
Minor Compliance The Sustainability Team from Sime Darby Plantation supports the SOU 21 management to ensure all applicable laws including international and ratified conventions applicable in Malaysia to their operations are listed in their legal register (LORR). Criterion 2.2 The right to use the land is demonstrated, and is not legitimately contested by local people who can demonstrate that they have legal, customary or user rights. Indicators Findings and Objective Evidence Compliance 2.2.1 Documents showing legal Land titles were maintained and verified including payment of Complied ownership or lease, history of land land tax during the audit (see also 2.1.1). tenure and the actual legal use of the land shall be available.
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Major Compliance 2.2.2 Legal boundaries shall be Boundary stones and markers were visibly sighted at the Labis Complied clearly demarcated and visibly Forest Reserve and no disputes on the right to use the land maintained.
Major Compliance 2.2.3 Where there are or have Verified no disputes recorded in SOU 21 since the last audit Complied been disputes, additional proof of legal acquisition of title and evidence that fair compensation has been made to previous owners and occupants shall be available, and that these have been accepted with free, prior and informed consent (FPIC).
Major / Minor (TBF) 2.2.4 There shall be an absence of Verified no disputes recorded in SOU 21 Gunung Mas since the Complied significant land conflict, unless last audit requirements for acceptable conflict resolution processes (see Criteria 6.3 and 6.4) are implemented and accepted by the parties involved.
Major / Minor (TBF) 2.2.5 For any conflict or dispute Verified no disputes recorded in SOU 21 Gunung Mas since the Complied over the land, the extent of the last audit disputed area shall be mapped out in a participatory way with involvement of affected parties (including neighbouring communities where applicable).
Major / Minor (TBF) 2.2.6 To avoid escalation of Verified no disputes recorded in SOU 21 Gunung Mas since the Complied conflict, there shall be no evidence last audit that palm oil operations have instigated violence in maintaining peace and order in their current and planned operations.
Major / Minor (TBF) Criterion 2.3 Use of the land for oil palm does not diminish the legal, customary or user rights of other users without their free, prior and informed consent. Indicators Findings and Objective Evidence Compliance 2.3.1 Maps of an appropriate scale Verified no legal, customary or user rights recorded in SOU 21 Complied showing the extent of recognised Gunung Mas since the last audit legal, customary or user rights (Criteria 2.2, 7.5 and 7.6) shall be developed through participatory mapping involving affected parties (including neighbouring communities where applicable, and relevant authorities).
Intertek RSPO Report: April 2014
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Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd Page 17 of 49 SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope
Major Compliance 2.3.2 Copies of negotiated Verified no legal, customary or user rights recorded in SOU 21 Complied agreements detailing the process Gunung Mas since the last audit of free, prior and informed consent (FPIC) (Criteria 2.2, 7.5 and 7.6) shall be available and shall include: a) Evidence that a plan has been developed through consultation and discussion with all affected groups in the communities, and that information has been provided to all affected groups, including information on the steps that shall be taken to involve them in decision making; b) Evidence that the company has respected communities’ decisions to give or withhold their consent to the operation at the time that this decision was taken; c) Evidence that the legal, economic, environmental and social implications for permitting operations on their land have been understood and accepted by affected communities, including the implications for the legal status of their land at the expiry of the company’s title, concession or lease on the land.
Minor Compliance 2.3.3 All relevant information shall Verified no legal, customary or user rights recorded in SOU 21 Complied be available in appropriate forms Gunung Mas since the last audit and languages, including assessments of impacts, proposed benefit sharing, and legal arrangements.
Major / Minor (TBF) 2.3.4 Evidence shall be available Verified no legal, customary or user rights recorded in SOU 21 Complied to show that communities are Gunung Mas since the last audit represented through institutions or representatives of their own choosing, including legal counsel.
Major / Minor (TBF)
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Principle 3: Commitment to long-term Economic & Financial Viability Criterion 3.1 There is an implemented management plan that aims to achieve long term economic and financial viability. Indicators Findings and Objective Evidence Compliance 3.1.1 A business or management Both the mill and the estates had management plan for 5 years, Complied plan (minimum three years) shall with details such as yield/ha., CPO production, OER, KER, and be documented that includes, cost of production. Records had been verified to be satisfactory. where appropriate, a business case for scheme smallholders.
Major Compliance 3.1.2 An annual replanting Annual replanting programme projected to 2017/18 had been Complied programme projected for a verified: minimum of five years (but longer where necessary to reflect the Ha in 2013/14 14/15 15/16 16/17 17/18 management of fragile soils, see Y Peng Et 133.31 196.94 Criterion 4.3), with yearly review, shall be available. K Klebang Et 84.56 117.36 203.18
Minor Compliance
Principle 4: Use of appropriate best practices by growers and millers Criterion 4.1 Operating procedures are appropriately documented, consistently implemented and monitored. Indicators Findings and Objective Evidence Compliance 4.1.1 Standard Operating The mill and the estates had a copy each of the Standard Complied Procedures (SOPs) for estates and Operating Procedures and these had been verified to be in mills shall be documented. order.
Major Compliance 4.1.2 A mechanism to check Records had been kept by the staff concerned for each Complied consistent implementation of operation to monitor the procedure and progress of work, and procedures shall be in place. these records would be checked by the Assistant Manager and the Manager regularly. These records had been verified to Major / Minor (TBF) indicate satisfactory implementation during the visit.
The name of the material used has been recorded suitably in fertilizer application and insecticide spraying application records in Bukit Paloh Estate, Yong Peng Estate and Kempas Klebang estates. Thus, previous Minor NCR was effectively closed 4.1.3 Records of monitoring and The records of monitoring and the actions taken had been Complied any actions taken shall be maintained for more than 12 months on the mill and estates maintained and available, as concerned. These records had been verified. appropriate.
Minor Compliance 4.1.4 The mill shall record the The mill did not source any FFB from third party. The entire Complied origins of all third party sourced crop was supplie d by the estates within the PMU grouping and
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Fresh Fruit Bunches (FFB). other certified Sime Darby estates as verified from the records that indicate the source of origin of FFB. Major / Minor (TBF) Criterion 4.2 Practices maintain soil fertility at, or where possible improve soil fertility to, a level that ensures optimal and sustained yield. Indicators Findings and Objective Evidence Compliance 4.2.1 There shall be evidence that Fertilizer inputs were based on Sime Darby Research Station’s Complied good agriculture practices, as recommendations. contained in Standard Operating Procedures (SOPs), are followed to manage soil fertility to a level that ensures optimal and sustained yield, where possible.
Minor Compliance 4.2.2 Records of fertiliser inputs Records of fertilizer application had been verified to be in Complied shall be maintained. order.
Minor Compliance 4.2.3 There shall be evidence of Leaf sampling and analysis had been carried out annually. Complied periodic tissue and soil sampling to monitor changes in nutrient status. Soil sampling and analysis had been carried out at 5 year cycle. Records of the sampling, analysis and monitoring had Minor Compliance been verified to be satisfactory. 4.2.4 A nutrient recycling strategy EFB had been utilized as mulch in the immature area. 2 rounds Complied shall be in place, and may include of application around the circle of young palms had been use of Empty Fruit Bunches (EFB), carried out during the immaturity period. Palm Oil Mill Effluent (POME), and palm residues after replanting. Any surplus would then be applied in the mature area. Minor Compliance POME had been utilized in compost preparation and land application.
In replanting area, the palm trunk had been shredded and stacked in the inter row for recycling of nutrients back to the soil during the process of decomposition. Criterion 4.3 Practices minimise and control erosion and degradation of soils. Indicators Findings and Objective Evidence Compliance 4.3.1 Maps of any fragile soils shall Based on the soil map, there was no fragile soil on the estates Complied be available. visited. This was also verified during field visits.
Minor Compliance 4.3.2 A management strategy shall Water Conservation Terraces (WCT) had been constructed Observation be in place for plantings on slopes on slope between 2° to 6°. However, more WCT should be above a certain limit (this needs to constructed to enhance the water conservation in the field. be soil and climate specific).
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Minor Compliance An observation had been issued.
Planting terraces had been constructed on slopes >6°, as per policy stated in SOP.
Fields were generally covered with cover crop and soft grasses. 4.3.3 A road maintenance The estate roads found to be in satisfactory condition. Complied programme shall be in place. Road maintenance programme had been verified to be Minor Compliance implemented on the estates. 4.3.4 Subsidence of peat soils There was no peat soil on Yong Peng Estate and Kempas Complied shall be minimised and monitored. Klebang Estate. A documented water and ground cover management programme shall be in place.
Minor Compliance 4.3.5 Drainability assessments Not applicable at the PMU. N/A shall be required prior to replanting on peat to determine the long term viability of the necessary drainage for oil palm growing.
Minor Compliance 4.3.6 A management strategy shall Not applicable at the PMU. N/A be in place for other fragile and problem soils (e.g. sandy, low organic matter, acid sulphate soils).
Minor Compliance Criterion 4.4 Practices maintain the quality and availability of surface and ground water. Indicators Findings and Objective Evidence Compliance 4.4.1 An implemented water Documented water management plan and relevant records had Complied management plan shall be in been verified to be in order. place.
Major / Minor - TBF 4.4.2 Protection of water courses Buffer zone had been observed on both sides of stream in F 99 Complied and wetlands, including G on Yong Peng Estate. maintaining and restoring appropriate riparian and other buffer zones (refer to national best There was no construction of bunds/ weirs/dams across the practice and national guidelines) main rivers or waterways passing through the estates. shall be demonstrated.
Major Compliance 4.4.3 Appropriate treatment of mill In palm oil mill, water samples had been taken at monthly Complied effluent to required levels and interval at the discharge point of effluent pond. BOD level had regular monitoring of discharge been in the range of 35 to 336 ppm. with an average of 184 quality, especially Biochemical ppm for land application from Jan to Dec, 2013.
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Oxygen Demand (BOD), shall be in compliance with national regulations (Criteria 2.1 and 5.6).
Major / Minor – TBF 4.4.4 Mill water use per tonne of Water usage in the mill from Jan to Dec ’13 ranged from 0.92 Complied Fresh Fruit Bunches (FFB) (see to 1.97 m3/tonne FFB with an average of 1.08 m3/tonne FFB Criterion 5.6) shall be monitored. which compared well with industrial norm.
Minor Compliance For 4.4.2: Refer to the ‘RSPO Manual On Best Management Practices (BMP) for management and rehabilitation of natural vegetation associated with oil palm cultivation on peat’ , July 2012. Criterion 4.5 Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate Integrated Pest Management techniques. Indicators Findings and Objective Evidence Compliance 4.5.1 Implementation of Integrated Records on planting of beneficial plants had been Complied Pest Management (IPM) plans verified on the estates. shall be monitored.
The Estates had achieved the target of planting 2 DM/ha. of Minor Compliance beneficial plants, and they were planning to increase the amount to 3 DM/ha by June/July, 2014
There was an outbreak of bag worm attack in F 97D on Yong Peng Estate and it was brought under control by trunk injection of monocrotophos. 4.5.2 Training of those involved in Training records for personnel on IPM implementation are Complied IPM implementation shall be satisfactory. demonstrated.
Minor Compliance Criterion 4.6 Pesticides are used in ways that do not endanger health or the environment Indicators Findings and Objective Evidence Compliance 4.6.1 Justification of all pesticides Written justification in Standard Operating Procedures of all Complied used shall be demonstrated. The agrochemicals use had been reviewed and found acceptable. use of selective products that are specific to the target pest, weed or disease and which have minimal Basta with a.i. Glufosinate ammonium 13.5% had been used effect on non target species shall for circle spraying in immature palms due to its selective be used where available. property.
Major Compliance 4.6.2 Records of pesticides use Records of pesticides and their active ingredients used, LD50, Complied (including active ingredients used area treated, amount of a.i. applied per ha, and number of and their LD50, area treated, applications had been maintained and kept for a minimum of 5 amount of active ingredients years. applied per ha and number of
Intertek RSPO Report: April 2014
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Major Compliance 4.6.3 Any use of pesticides shall It had been the policy of the estates to minimize the use of Complied be minimised as part of a plan, and pesticides in accordance with integrated pest management. No in accordance with Integrated Pest prophylactic use of pesticides had been carried out. Management (IPM) plans. There shall be no prophylactic use of pesticides, except in specific situations identified in national Best Practice guidelines.
Major Compliance 4.6.4 Pesticides that are Paraquat had been eliminated since the end of December, Complied categorised as World Health 2008. Organisation Class 1A or 1B, or that are listed by the Stockholm or Rotterdam Conventions, and Alternatives such as Glyphosate Isopropylamine, Metsulfuron paraquat, are not used, except in Methyl, and Triclopy Butoxyethyl Esther had been used with specific situations identified in the elimination of Paraquat. national Best Practice guidelines. The use of such pesticides shall be minimised and eliminated as part of a plan, and shall only be used in exceptional circumstances.
Major Compliance 4.6.5 Pesticides shall only be All pesticide operators had been given training on the handling Complied handled, used or applied by and application of the pesticides. Appropriate safety and persons who have completed the application equipment had been provided and used by the necessary training and shall operators. always be applied in accordance with the product label. Appropriate All precautions attached to the products had been observed, safety and application equipment applied, and understood by the workers. shall be provided and used. All precautions attached to the products shall be properly Programme and training records had been verified to be in observed, applied, and understood order. by workers (see Criterion 4.7).
Major Compliance 4.6.6 Storage of all pesticides shall Pesticides had been stored in accordance to the local Complied be according to recognised best Occupational Safety and Health Laws and Regulations and practices. All pesticide containers local laws on Pesticides control. shall be properly disposed of and not used for other purposes (see Criterion 5.3). Used chemical containers were disposed of by DOE approved / registered Hazardous waste contractor. Major Compliance 4.6.7 Application of pesticides shall Pesticides had been applied using the proven methods (BMP) Complied be by proven methods that that minimize risk and impacts. minimise risk and impacts.
Major Compliance 4.6.8 Pesticides shall be applied It is the policy of the company not to carry out any aerial Complied aerially only where there is application of pesticides. This policy has been adhered to. documented justification. Communities shall be informed of
Intertek RSPO Report: April 2014
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Major Compliance 4.6.9 Maintenance of employee Periodic training on pesticide handling had been carried out. Complied and associated smallholder Information on the pesticides was being displayed next to the knowledge and skills on pesticide pesticides in the store and notice board. handling shall be demonstrated; including provision of appropriate information materials (see Criterion 4.8).
Major Compliance 4.6.10 Proper disposal of waste Scheduled waste had been disposed of through licensed Complied material, according to procedures contractor approved by DOE. Records of scheduled waste that are fully understood by involved had been verified. workers and managers shall be demonstrated (see Criterion 5.3).
Major Compliance 4.6.11 Specific annual medical Annual Medical surveillance had been carried out for workers Complied surveillance for pesticide handling pesticides: operators, and documented action to treat related health conditions, Yong Peng Estate on 10 2 2014 33 workers shall be demonstrated. Kempas Klebang Estate on 5 12 2013 35 workers
Major Compliance 4.6.12 No work with pesticides No pregnant or breast feeding woman had been offered work Complied shall be undertaken by pregnant or as pesticide operator. breast feeding women.
Major Compliance Criterion 4.7 An occupational health and safety plan is documented, effectively communicated and implemented. Indicators Findings and Objective Evidence Compliance The health and safety plan shall Occupational Safety and Health (OSH) plan in compliance with Complied cover the following: OSH Act and Factory Machinery Act had been prepared and 4.7.1 A health and safety policy documented and implemented. shall be in place. A health and A safety and health policy had been verified. Records on safety plan covering all activities training and analysis on understanding of training by the shall be documented and workers had been verified. implemented, and its effectiveness monitored.
Major Compliance 4.7.2 All operations where health All operations had been risk assessed, documented and Complied and safety is an issue shall be risk implemented. assessed, and procedures and actions shall be documented and All precautions attached to the products had been observed implemented to address the and applied to the workers through MSDS. identified issues. All precautions attached to products shall be properly observed and applied to
Intertek RSPO Report: April 2014
INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296 W)
Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd Page 24 of 49 SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope the workers.
Major Compliance 4.7.3 All workers involved in the Awareness and training programme had been carried out. Complied operation shall be adequately trained in safe working practices All workers involved had been trained in safe working (see Criterion 4.8). Adequate and practices. appropriate protective equipment shall be available to all workers at Appropriate PPE had been provided at the place of work to the place of work to cover all cover all potentially hazardous operations. potentially hazardous operations, such as pesticide application, machine operations, and land preparation, harvesting and, if it is used, burning.
Major Compliance 4.7.4 The responsible The responsible person (usually the Mandore or Headman) Complied person/persons shall be identified. had been identified. There shall be records of regular meetings between the responsible Records of regular meetings between the responsible person person/s and workers. Concerns of and workers to discuss about health and safety had been all parties about health, safety and verified to be satisfactory. welfare shall be discussed at these meetings, and any issues raised shall be recorded.
Major Compliance 4.7.5 Accident and emergency Accident and emergency procedures had been written and Complied procedures shall exist and briefed to staff, workers, contractors and visitors. instructions shall be clearly understood by all workers. Workers trained in First Aid were present in the mill and field Accident procedures shall be operations. available in the appropriate language of the workforce. Assigned operatives trained in First First Aid Kits were available at worksites except as mentioned Aid should be present in both field under 4.8.1. and other operations, and first aid Records on all accidents had been verified. Quarterly review equipment shall be available at worksites. Records of all accidents on accident cases had been carried out during quarterly shall be kept and periodically meeting of Environment, Safety, & Health (ESH). reviewed.
Major Compliance 4.7.6 All workers shall be provided Medical care had been provided to all the workers. Complied with medical care and covered by accident insurance. Local workers are covered by SOCSO, whereas foreign workers are covered by Foreign Workers Compensation Scheme with RHB Insurance Berhad. Major Compliance
4.7.7 Occupational injuries shall be Records on Lost Time Accident (LTA) metrics had been Complied recorded using Lost Time Accident verified to be satisfactory. (LTA) metrics
Major Compliance Criterion 4.8 All staff, workers, smallholders and contract workers are appropriately trained.
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Indicators Findings and Objective Evidence Compliance 4.8.1 A formal training programme A formal training programme on all aspects of RSPO Principles shall be in place that covers all and Criteria has been established and implemented. aspects of the RSPO Principles and Criteria, and that includes However, a group of newly employed oil palm frond pruning operators were not adequately trained. They were regular assessments of training needs and documentation of the working without wearing safety helmets and the First aid programme. Kits were not brought to the worksite although these had been provided by the estate management. Major Compliance A Major Non-compliance had been issued. Major Non- compliance 4.8.2 Records of training for each Records of training for employee had been verified to be kept. Complied employee shall be maintained.
Major Compliance
Principle 5: Environmental responsibility and conservation of natural resources and biodiversity
Criterion 5.1 Aspects of plantation and mill management, including replanting, that have environmental impacts are identified, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continual improvement. Indicators Findings and Objective Evidence Compliance 5.1.1 An environmental impact The documented environmental aspects and impacts, risk Complied assessment (EIA) shall be assessments were reviewed in 05 Feb 2014. The review documented. process had included stakeholders’ consultation with regards to environmental aspects, impacts, and pollution Major Compliance control, and ERT, HCV and land usage issues. 5.1.2 Where the identification of Environmental improvement plan implemented and Complied impacts requires changes in monitored every quarter taking into consideration the current practices, in order to results of the environmental aspects and risk assessment mitigate negative effects, a conducted in 05 Feb 2014. Environment improvement timetable for change shall be developed and implemented within plans include planting of beneficial plants, reviewing and a comprehensive management improving maintenance of riparian buffer zones as well as plan. The management plan shall continuous training, awareness and briefings related to identify the responsible environmental awareness activities. person/persons.
Major / Minor -TBF 5.1.3 This plan shall incorporate a An environmental improvement plan was implemented to Complied monitoring protocol, adaptive to monitor the effectiveness of the mitigation measures. This operational changes, which shall plan incorporated a monitoring protocol, which is adaptive be implemented to monitor the to operational changes and is reviewed every year to effectiveness of the mitigation measures. The plan shall be reflect the results of monitoring operational changes that reviewed as a minimum every two may have positive and negative environmental impacts. years to reflect the results of The latest review for FY 2013/2014 was done on 05 Feb monitoring and where there are 2014. operational changes that may have positive and negative environmental impacts.
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Major / Minor -TBF Criterion 5.2 The status of rare, threatened or endangered species and other High Conservation Value habitats, if any, that exist in the plantation or that could be affected by plantation or mill management, shall be identified and operations managed to best ensure that they are maintained and/or enhanced. Indicators Findings and Objective Evidence Compliance 5.2.1 Information shall be collated HCV(s) identification and assessment maintained as per Complied in a High Conservation Value Biodiversity Baseline Assessment Report. Previous (HCV) assessment that includes Biodiversity Baseline Assessment was done in May 2009. both the planted area itself and Next Biodiversity Baseline Assessment is ongoing at time relevant wider landscape level considerations (such as wildlife of this surveillance audit and expected to be completed by corridors). April 2014.
Major Compliance 5.2.2 Where rare, threatened or Management plans for HCV habitats and their conservation Complied endangered (RTE) species, or were currently monitored, tracked and updated periodically HCVs, are present or are affected within the estates / mill. However, latest review of HCV by by plantation or mill operations, SDPSB Sustainability Department indicates no RTE appropriate measures that are expected to maintain and/or species or HCV within SOU 21. enhance them shall be implemented through a management plan.
Major Compliance 5.2.3 There shall be a programme Evidence to continuously prevent and discourage illegal or Complied to regularly educate the workforce hunting, fishing or collecting activities were maintained and about the status of these RTE implemented in SOU 21. Signages as well as routine species, and appropriate patrolling activities were utilised for this purpose. disciplinary measures shall be instigated in accordance with company rules and national law if any individual working for the company is found to capture, harm, collect or kill these species.
Major Compliance 5.2.4 Where a management plan Management plans were established and monitoring Complied has been created there shall be outcomes were reviewed by the estate managers. Ongoing ongoing monitoring: monitoring of the management plan on the status of HCV • The status of HCV and RTE and RTE species was noted. species that are affected by plantation or mill operations shall be documented and reported; • Outcomes of monitoring shall be fed back into the management plan.
Major / Minor -TBF 5.2.5 Where HCV set asides with Currently, there was no instance of HCV set aside that Complied existing rights of local communities conflicts with the rights of local communities. Therefore, have been identified, there shall be the negotiated agreement of such nature is not applicable. evidence of a negotiated agreement that optimally safeguards both the HCVs and
Intertek RSPO Report: April 2014
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Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd Page 27 of 49 SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope these rights.
Major / Minor -TBF Criterion 5.3 Waste is reduced, recycled, re used and disposed of in an environmentally and socially responsible manner. Indicators Findings and Objective Evidence Compliance 5.3.1 All waste products and Documented identification of all wastes were reflected in Complied sources of pollution shall be the Waste Management Plan for the current year identified and documented. (2013/2014). Dated 05/02/14 Yong Peng Estate (YPE) Major Compliance Dated 01/02/14 Kempas Klebang Estate(KKE) Dated 01/07/13 Gunong Mas Mill
5.3.2 All chemicals and their The Waste management plan for estates and mill were Complied containers shall be disposed of implemented. SOP for the handling of domestic waste, responsibly. schedule waste and recycling were maintained and implemented. The desludging of the mill‘s effluent Major / Minor -TBF treatment ponds adhered to the schedule/plan as required in the license
5.3.3 A waste management and The composting plant which is located adjacent to the mill Complied disposal plan to avoid or reduce was commissioned and was fully operational in 2012. Asia pollution shall be documented and Green Resources Sdn Bhd had been appointed by Sime implemented. Darby Plantation, HQ to operate the composting plant.
Major / Minor -TBF The composting plant recycles waste from the Gunung Mas POM such as the EFB and POME . The compost from the composting plant is used for land application at Gunung Mas Estate which is adjacent to the composting plant. Criterion 5.4 Efficiency of fossil fuel use and the use of renewable energy is optimised. Indicators Findings and Objective Evidence Compliance 5.4.1 A plan for improving The mill production output records and the two boilers Complied efficiency of the use of fossil fuels operational records were monitored monthly till Feb 2014 and to optimise renewable energy and had included monitoring of the renewable energy shall be in place and monitored. usage .
Minor Compliance The renewable energy usage from the POM’s data analysis indicates 95.74 kWh/mt CPO for the last period from July 2013 to Feb 2014. Criterion 5.5 Use of fire for preparing land or replanting is avoided, except in specific situations as identified in the ASEAN guidelines or other regional best practice. Indicators Findings and Objective Evidence Compliance 5.5.1 There shall be no land Zero open burning policy upheld in SOU 21as per SOP Complied preparation by burning, other than Section B2 Felling/Land Clearing & Land Preparation in specific situations as identified in dated 01/11/2008. SOU21 management are strictly the ‘Guidelines for the
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Implementation of the ASEAN complying to the Malaysian environmental law –EQA and Policy on Zero Burning’ 2003, or Regulations 1974. comparable guidelines in other regions. No physical evidence of open burning.
Major Compliance 5.5.2 Where fire has been used for Previous crop were felled or mowed down, Complied preparing land for replanting, there chipped/shredded. No evidence of open burning of shall be evidence of prior approval previous crop carried out as per SOP mentioned above. of the controlled burning as specified in ‘Guidelines for the Implementation of the ASEAN Policy on Zero Burning’ 2003, or comparable guidelines in other regions.
Minor Compliance Criterion 5.6 Plans to reduce pollution and emissions, including greenhouse gases, are developed, implemented and monitored. Indicators Findings and Objective Evidence Compliance 5.6.1 An assessment of all Aspect and impact assessment performed has been Complied polluting activities shall be updated in Feb 2014. conducted, including gaseous emissions; particulate/soot emissions and effluent (see POME that was discharged was controlled, monitored and Criterion 4.4). results of effluent sampling were meeting DOE requirements. DOE was notified and results declared to Major Compliance DOE Kluang District periodically. Authorisation letter from DOE to discharge POME after processing by effluent ponds was verified during this audit.
The online Continuous Emission Monitoring System for the Gunung Mas POM has been established with DOE since 2013. No violations from DOE have been received for FY2013/2014 to date.
5.6.2 Significant pollutants and Significant pollutants and greenhouse gas (GHG) New requirement greenhouse gas (GHG) emissions emissions were identified, e.g. POME, diesel / fuel and of RSPO P&C shall be identified, and plans to fertilizer usage have been documented at the PMU. It is (2013) Follow up reduce or minimise them noted that the SDPSB Sustainability Department from HQ action at next implemented. have already established plans for implementation and audit.
monitoring of GHG emissions. Major / Minor -TBF
5.6.3 A monitoring system shall be Monitoring and reporting of the significant pollutants to New requirement in place, with regular reporting on water, gaseous emissions to air and contamination on land of RSPO P&C progress for these significant are available. Tools and systems used include the DOE (2013) Follow up pollutants and emissions from online CEMS monitoring for air emissions, water quality at action at next estate and mill operations, using appropriate tools. discharge points as per DOE regulations and Scheduled audit. Waste disposal were adhering to DOE requirements. It
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was verified that the POME is treated using aerobic and Major / Minor -TBF anaerobic ponds. Effluent waste water samples were regularly taken every six months and tested by the laboratory mill officer in charge and analyzed to ensure compliance to DOE requirements. Records are maintained and were verified on site to have met the permissible regulatory limits.
Principle 6: Responsible consideration of employees, and of individuals and communities affected by growers and mills
Criterion 6.1 Aspects of plantation and mill management that have social impacts, including replanting, are identified in a participatory way, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continual improvement. Indicators Findings and Objective Evidence Compliance 6.1.1 A social impact assessment A documented Social Impact Assessment Report dated Complied (SIA) including records of meetings Feb 2009 covering the SOU 21 Gunung Mas PMU areas shall be documented. with three estates and one POM had been established by the TQEM Department of SDPSB, which is independent Major Compliance from the SOU 21 Gunung Mas Operating Unit.
Records of meeting with stakeholders indicated discussions held generally on matters pertaining to access roads and use rights within SOU21, working conditions, cultural/festival activities, health facilities and other community values. A time table of activities identified was sighted with time frame on implementation plans. Site inspection carried out confirmed the implementation was in progress.
The current social Management Plan was updated for FY 2013/2014. Records of the regular stakeholder meetings have been maintained for FY 2013/2014. Issues raised during the stakeholder consultations have been followed up in an effective, timely and appropriate manner by the mill and estate management. Issues included areas related to road maintenance, water supply, housing facilities of workers and general welfare (festivals, celebrations, social events and healthcare) at SOU21. Other issues identified were also responded by the estate management with appropriate time–scales, responsibilities, actions and regular monitoring. 6.1.2 There shall be evidence that Social Management Plans have been established with Complied the assessment has been done input from stakeholders meetings with participations from with the participation of affected affected parties such as community members, village parties. heads, mill/estates employees, contractors, suppliers, transporters among others. Minor Compliance 6.1.3 Plans for avoidance or Action plans denoting PIC and timelines have been Complied mitigation of negative impacts and established within the Social Management Plans for FY promotion of the positive ones, and 2013/2014. monitoring of impacts identified, shall be developed in consultation Local communities are allowed to use facilities available in
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Major / Minor -TBF Sime Darby Plantation Group, as of their Corporate Social Responsibility (CSR) commitment, have an extensive CSR programme which include activities related to local employment, community development , cultural and religious activities, health and education, community infrastructure and sustainability projects. These activities have been widely reported in the local media, Sime Darby newsletters as well as their corporate website. 6.1.4 The plans shall be reviewed Social Management Plan based on the stakeholders’ Complied as a minimum once every two consultation as well as all inputs during the external and years and updated as necessary, internal meetings conducted in 2013 were developed by in those cases where the review each PMU in the grouping to address the issues raised. has concluded that changes should be made to current practices.
There shall be evidence that the review includes the participation of affected parties.
Major / Minor -TBF 6.1.5 Particular attention shall be Verified no smallholder schemes in SOU 21 Gunung Mas Complied paid to the impacts of smallholder since the last audit schemes (where the plantation includes such a scheme).
Major / Minor -TBF 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. Indicators Findings and Objective Evidence Compliance 6.2.1 Consultation and Documented consultation and communication procedures Complied communication procedures shall titled “Handling Social Issues” SOP dated 01 Nov 2008 has be documented. been established for SOU 21 Gunung Mas PMU.
Major Compliance 6.2.2 A management official The responsibility to ensure effective implementation of the Complied responsible for these issues shall aforementioned SOP is with the respective Mill and Estate be nominated. Managers assisted by nominated social officers. The Social Officer of the respective operating unit oversees the Minor Compliance social/welfare portfolio of the mill/estates. 6.2.3 A list of stakeholders, records List of stakeholders have been updated and maintained for Complied of all communication, including FY 2013/2014. Records of meetings were maintained, i.e. confirmation of receipt and that on matters related to road access, water supply, religious effort are made to ensure festivities, visits by government officials. These records understanding by affected parties, were available in the Social Management Plan files at the and records of actions taken in respective units within SOU21. Mill / Estate activities and response to input from policies were displayed at notice boards in local languages stakeholders, shall be maintained. as well as in English.
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Minor Compliance Criterion 6.3 There is a mutually agreed and documented system for dealing with complaints and grievances, which is implemented and accepted by all affected parties. Indicators Findings and Objective Evidence Compliance 6.3.1 The system, open to all A documented dispute resolution procedure is available in Complied affected parties, shall resolve Mill and Estate Quality Management System Manual which disputes in an effective, timely and is effective, timely, appropriate and open to any affected appropriate manner, ensuring parties. anonymity of complainants and whistleblowers, where requested. Records are to be maintained since 2009 and retained for at least 3 years. Major Compliance 6.3.2 Documentation of both the Documented SOP to resolve disputes titled “Handling Complied process by which a dispute was Social Issues” SOP dated 01 Nov 2008 has been resolved and the outcome shall be established for SOU 21 Gunung Mas PMU. available. Minor Stakeholder meetings are held regularly at SOU21. Complaints, disputes including on gender issues are dealt with by open and consensual agreements during the stakeholder meetings. Follow up actions had timelines, responsibilities, details of actions and monitored by Mill and Estate Managers for satisfactory conclusion. Minutes of meetings are filed by Chief Clerk and reviewed by stakeholders including gender representatives as well as Mill and Estate Managers.
The system for dealing with complaints and grievances of affected parties are open to NGOs, government agencies, community members, village heads, mill/estate employees, contractors, suppliers, transporters among others. Criterion 6.4 Any negotiations concerning compensation for loss of legal, customary or user rights are dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions. Indicators Findings and Objective Evidence Compliance 6.4.1 A procedure for identifying Documented SOP to identify legal and customary rights as Complied legal, customary or user rights, and well as people entitled to compensation has been a procedure for identifying people established titled “Handling Land Disputes” SOP dated 01 entitled to compensation, shall be Nov 2008 for SOU 21 Gunung Mas PMU. However to in place. date, there have been no issues related to loss of legal customary rights with indigenous peoples, local Major Compliance communities and other stakeholders. 6.4.2 A procedure for calculating A procedure for calculating and distributing fair Complied and distributing fair compensation compensation taking into account various factors such as (monetary or otherwise) shall be gender differences, ownership and access to land, rights of established and implemented, long established communities, differences in ethnic group’s monitored and evaluated in a participatory way, and corrective proof of legal versus communal ownership of land have actions taken as a result of this been established titled “Handling Land Disputes” SOP evaluation. This procedure shall dated 01 Nov 2008 for SOU 21 Gunung Mas PMU. take into account: gender differences in the power to claim rights, ownership and access to
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Minor Compliance 6.4.3 The process and outcome of There have been no issues related to loss of legal Complied any negotiated agreements and customary rights with indigenous peoples, local compensation claims shall be communities and other stakeholders to date. documented, with evidence of the participation of affected parties, and made publicly available. Minor Compliance Criterion 6.5 Pay and conditions for employees and for contract workers always meet at least legal or industry minimum standards and are sufficient to provide decent living wages. Indicators Findings and Objective Evidence Compliance 6.5.1 Documentation of pay and Documentation of pay and benefits e.g. pay slips, Complied conditions shall be available. appointment letters, leave, medical records, bank statements /records are maintained by the Chief Clerk at respective mill/estate offices and complies with Malaysian Major Compliance regulations. 6.5.2 Labour laws, union Documents are available in languages understood by Complied agreements or direct contracts of workers. Pay and conditions have been explained carefully employment detailing payments to workers by the plantation management from the and conditions of employment (e.g. respective mills and estates. Basic daily pay was verified to working hours, deductions, be in accordance with the Minimum Wage Order 2012. overtime, sickness, holiday entitlement, maternity leave, reasons for dismissal, period of notice, etc.) shall be available in the languages understood by the workers or explained carefully to them by a management official.
Minor Compliance 6.5.3 Growers and millers shall Adequate housing, water supply, electricity, medical, Complied provide adequate housing, water education and welfare amenities have been provided. supplies, medical, educational and During the interview with workers at the estates confirmed welfare amenities to national that other subsidies are also provided e.g. groceries, standards or above, where no such school bus fare, school fee, mobile phone credit top up, public facilities are available or cultural, religious practices of workers are adequately accessible. catered for including Muslim Surau and Hindu temples for the workers. Minor Compliance Labour Policy complying to all RSPO requirements have been established by Sime Darby Corporate Management and distributed to all SOUs including SOU 21.
Field visits and interviews have verified that foreign workers have been covered with workmen insurance as provided by law. In addition, there is no discrimination practiced against foreign workers.
All migrant workers are legally employed. All migrant workers have been provided with employment
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contracts understood by them, proper housing and living conditions, safe working environment and facilities for cultural/religious activities. 6.5.4 Growers and millers shall Access to food for the workers are considered adequately Complied make demonstrable efforts to and sufficiently provided through sundry shops available in monitor and improve workers’ each estate and mill linesite. Children accommodated at access to adequate, sufficient and the crèches are also provided with sufficient free infant affordable food. formula.
Minor Compliance Criterion 6.6 The employer respects the rights of all personnel to form and join trade unions of their choice and to bargain collectively. Where the right to freedom of association and collective bargaining are restricted under law, the employer facilitates parallel means of independent and free association and bargaining for all such personnel. Indicators Findings and Objective Evidence Compliance 6.6.1 A published statement in NUPW representative from Yong Peng estate were Complied local languages recognising interviewed and confirmed that workers are free to join any freedom of association shall be trade union of their choice. NUPW representatives from available. Sime Darby SOU21 meet up regularly at least once per year with national level NUPW representatives. Major / Minor -TBF 6.6.2 Minutes of meetings with There is a published statement of social policy in Bahasa Complied main trade unions or workers Malaysia and English, recognizing the employee’s freedom representatives shall be of association as stipulated in the Industrial Relations Act, documented. 1967, Malaysia.
Major Compliance MAPA/AMESU collective agreement as well as NUPW collective an agreement was available in the mill/estate offices. The NUPW/AMESU worker representatives and Gender Committees interviewed confirmed that the work and pay conditions were satisfactory. Criterion 6.7 Children are not employed or exploited. Indicators Findings and Objective Evidence Compliance 6.7.1 There shall be documentary The Social Policy stipulates that no child labour is allowed. Complied evidence that minimum age Implementation of this policy has been consistently requirements are met. maintained and field visits and inspection of payroll records confirmed no evidence of child labour. Major Compliance Minimum working age is above 18 years old in SOU21 PMU. 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. Indicators Findings and Objective Evidence Compliance 6.8.1 A publicly available equal The Sime Darby Social Policy prohibits any discrimination Complied opportunities policy including based on race, caste, nationality, gender, disability, sexual identification of relevant/affected orientation, union membership, political view, religion and groups in the local environment age. shall be documented.
Major Compliance
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6.8.2 Evidence shall be provided Stakeholder interviews and inspection of records confirmed Complied that employees and groups that there were no negative issues of discrimination. including local communities, Workers include men and women were found to be from women, and migrant workers have diverse backgrounds race religion and age. No not been discriminated against. discrimination was found for foreign workers e.g. in salary, workmen insurance, medical and housing facilities. Minor Compliance Affirmative action (positive discrimination) is done by providing opportunities to locals for employment and business opportunities. 6.8.3 It shall be demonstrated that Applications for field worker positions most of the times will Complied recruitment selection, hiring and be accepted by the estate managements with very minimal promotion are based on skills, requirements due to short of labour supply in the industry. capabilities, qualities, and medical Gn. Mas POM however will require certain special skills fitness necessary for the jobs available. from the applicants as the nature of the jobs offered are more technical.
Major / Minor -TBF However, in promotions into higher positions all PMUs made their decisions based on skill, capabilities, qualities and medical fitness of the workers. It was evident during the audit where no discrimination based on nationality, race, gender, age, etc. found. Criterion 6.9 There is no harassment or abuse in the work place, and reproductive rights are protected. Indicators Findings and Objective Evidence Compliance 6.9.1 A policy to prevent sexual SOU21 PMU has a publicly available Gender Policy and and all other forms of harassment Gender SOP. Series of briefings and training for women and violence shall be implemented issues awareness and empowerment have been and communicated to all levels of conducted since 2008 till present, involving workers, the workforce. suppliers, subcontractors and managers of SOU21 mill and estates. Gender policy in English and Bahasa Malaysia is
Major Compliance available in all mill and estates and displayed at public areas.
The SOU21 Gender Committee had conducted periodic meetings; activities have been planned for FY 2013/2014 such as sewing classes, cooking classes, computer training, social activities and counseling among others.
However, it was found that awareness building or Observation briefing sessions were focusing more on the female 2 of 2 workers, whilst male awareness building for male workers are lacking. 6.9.2 A policy to protect the Kempas Klebang estate [13 Mar. 2014] reproductive rights of all, especially of women, shall be implemented − Women are given two months paid maternity leave as and communicated to all levels of required by law. the workforce.
Major Compliance 6.9.3 A specific grievance There is an established mechanism in the form of Complied mechanism which respects suggestion box, internal NUPW meeting and anonymity and protects Communication Book to manage grievances from internal
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Bahasa Malaysia for easy understanding of the local Major / Minor -TBF people.
Sensitive grievances and complaints are treated as private and confidential thus protecting the anonymity of the complainants, for example the sexual harassment reports. The sexual harassment report books are kept under lock and key and accessible only to assigned personnel within the Gender Consultative Committee. Criterion 6.10 Growers and millers deal fairly and transparently with smallholders and other local businesses. Indicators Findings and Objective Evidence Compliance 6.10.1 Current and past prices paid All FFB supplied at SOU21 from Jan 2012 onwards were Complied for Fresh Fruit Bunches (FFB) shall from SDPSB estates. Pricing mechanism for FFB and be publicly available. other inputs/services have been documented. The inputs/services with local business were mainly for the Major Compliance supply of transport services, chemicals, fertilizers, equipment spare parts, equipment maintenance services and manpower were also found to be equitable.
The stakeholders interviewed provided positive comments/feedback on SOU21 management practices. 6.10.2 Evidence shall be available The interviews conducted with estate field workers Complied that growers/millers have confirmed that the workers are aware of FFB pricing and explained FFB pricing, and pricing the payment they are entitled for the types of work they are mechanisms for FFB and conducting. inputs/services shall be documented (where these are under the control of the mill or Data related to inputs/services such as costing incurred by plantation). transportation, logistics, maintenance for road and vehicles, social and environmental costs were noted to Major / Minor -TBF have been documented in the respective 5 year budget plans of the Mill and estates.
6.10.3 Evidence shall be available All parties having contractual agreements with PMU had Complied that all parties understand the entered their contracts with adequate understanding of the contractual agreements they enter terms and conditions set between both parties. into, and that contracts are fair, legal and transparent. Evidence was obtained during the viewing of the contracts sampled which among others included the office staff, field Minor Compliance workers of both genders; various contractors providing labour, transport and maintenance works at the grouping.
On site stakeholder interviews and consultation carried out with the various parties further confirmed their understanding of the contracts entered.
Based on the documented contracts sighted, review of meeting minutes with stakeholders as maintained in the respective files, there was no evidence to suggest of any unfair, illegal or non transparent practices in the grouping
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dealings with the local community businesses. 6.10.4 Agreed payments shall be Payment of wages to office staff as well as the field Complied made in a timely manner. workers is made no later than third day of every month.
Minor Compliance PMU by local business clearly stated that services rendered or purchases made will be paid within 60 days. This is a standard practice and the grouping received no complaints from any local business on delay of payments during the verification visit. The PMU audited also shows no pending payments to contractors or suppliers beyond the given period.. Criterion 6.11 Growers and millers contribute to local sustainable development where appropriate. Indicators Findings and Objective Evidence Compliance 6.11.1 Contributions to local The commitment to contribute towards local communities is Complied development that are based on the evident and verified results of consultation with local communities shall be demonstrated. The POM is actively contributing to the communities within and outside the POM. E.g. distribution of “dagingkorban” Minor Compliance during Eid and RM200.00 donation to the SMK Bekok PIBG in 2013.Local contractors are given opportunity to join in a tender process for the PMUs plans to build sufficient workers quarters.
The estate is actively contributing to the communities within and outside the POM. E.g. cleaning of S.K. Ldg. Yong Peng to prevent dengue outbreak.
Upgrading of all housing units from two rooms to three rooms in Kempas Klebang. 6.11.2 Where there are scheme Verified no smallholder schemes in SOU 21 Gunung Mas Complied smallholders, there shall be since the last audit evidence that efforts and/or resources have been allocated to improve smallholder productivity
Major / Minor -TBF . Criterion 6.12 No forms of forced or trafficked labour are used. 6.12.1 There shall be evidence that All foreign workers have valid passport. Thus no evident of Complied no forms of forced or trafficked forced or trafficked labour. labour are used.
Major / Minor -TBF 6.12.2 Where applicable, it shall be No incidents have been found and this is confirmed that Complied demonstrated that no contract during interviews with external stakeholders this issue has substitution has occurred. not been raised.
Major / Minor -TBF 6.12.3 Where temporary or migrant The Sime Darby Social Policy adopted and implemented Complied
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Major / Minor -TBF Criterion 6.13 Growers and millers respect human rights. Indicators Findings and Objective Evidence Compliance 6.13.1 A policy to respect human The Sime Darby Social Policy prohibits any discrimination Complied rights shall be documented and based on race, caste, nationality, gender, disability, sexual communicated to all levels of the orientation, union membership, political view, religion and workforce and operations (see age. Generally the policy covers human rights of the Criteria 1.2 and 2.1). workers and staff in the PMU.
Major / Minor -TBF
Principle 7: Responsible development of new plantings SOU 21 Gunung Mas grouping has a documented procedure for this development but has not carried any new plantings after Nov 2005. Therefore, the requirements of Principle 7 are not applicable during this assessment.
Principle 8: Commitment to continuous improvement in key areas of activity
Criterion 8.1 Growers and millers regularly monitor and review their activities, and develop and implement action plans that allow demonstrable continual improvement in key operations. Indicators Findings and Objective Evidence Compliance 8.1.1 The action plan for continual improvement shall be implemented, based on a consideration of the main social and environmental impacts and opportunities of the grower/mill, and shall include a range of Indicators covered by these Principles and Criteria.
Major / Minor -TBF
As a minimum, these shall include, EFB mulching done in mature and immature palms. Complied but are not necessarily be limited Increase in the planting of beneficial plants from 2 DM/ha to: to 3 DM/ha. To promote the breeding of more predators which will in turn reduce the attack by caterpillars and bag • Reduction in use of worm, thereby reducing the use of pesticides. pesticides(Criterion 4.6);
At Kempas Klebang Estate, Barn Owl boxes would be • Environmental impacts (Criteria increased over 400 ha, along the boundaries next to the 4.3, 5.1 and 5.2); small holdings, from 1 box:10 ha to 1 box:5 ha.
• Waste reduction (Criterion 5.3); Environmental impacts and action plans were monitored,
implemented and reviewed periodically. • Pollution and greenhouse gas (GHG) emissions (Criteria 5.6 and
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7.8); The composting plant at SOU21 recycles waste from the • Social impacts (Criterion 6.1); Gunung Mas POM such as the EFB and POME thus reducing thir negative environmental impacts. The • Optimising the yield of the supply compost from the composting plant is used for land base. application at Gunung Mas Estate which is adjacent to the composting plant.
Environmental impacts improvement also include additional planting of beneficial plants for FY2013/2014, reviewing and improving maintenance of riparian buffer zones as well as continuous training , awareness and briefings related to environmental awareness activities
PMU Gunung Mas Grouping SOU21 has identified the waste reduction plans for mills and estates for FY July 2013 to Jun 2014. These include continued usage of composting plant, increasing capacity of composting and POME discharge used for land application.
PMU Gunung Mas Grouping SOU21 has identified the pollution prevention plans, implemented and monitored the plans in order to mitigate the negative impacts on an annual basis to demonstrate continuous improvement. Pollution prevention plans for mills and estates for FY July 2013 to Jun 2014 are: a) Reduction of leakage from vehicles causing oil spillage b) Improve maintenance of tractors and air filters to reduce air pollution from tractor smoke emission c) Reduce leakage of pesticides during chemical mixing and washing process.
Significant pollutants and greenhouse gas (GHG) emissions were identified, e.g. POME, diesel / fuel and fertilizer usage have been documented at the PMU. It is noted that the SDPSB Sustainability Department from HQ have already established plans for implementation and monitoring of GHG emissions
PMU Gunung Mas Grouping SOU21 has identified the social impacts, implemented and monitored the plan to mitigate the negative impacts and promote the positive ones on an annual basis to demonstrate continuous improvement. Continual improvements planned and /or implemented FY2013/2014 include computers assistance for education , paint contribution to religious temple , creche improvement – painting , cabinets , furniture , baby care equipment , improvement of flooring , gender committee organised educational visit for organic farming techniques and social activities for specific groups .
Continual improvement on social aspects planned by the
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PMU are as listed below: − Upgrading of 2 bed rooms housing units to 3 bed rooms housing units for 40 house units in Kempas Klebang estate. 5 units have been completed. − Increase of NUPW and management meeting from once a year to 3 times a year at the Gn. Mas POM. − Continuation of estate managements’ RM10 contribution out of RM20 monthly commitment to workers personal assurance scheme. This is in addition to SOCSO and FWCS contributions.
Level indicator had been provided at vertical clarifier for better skim oil control in the mill. Provision of indicator for monitor cone guide at press passing digest.
Land application of POME in oil palm area. New fertilizer store will be built on Kempas Klebang in 2013/14.
3.1.1 Supply Chain Certification Standards Findings - on CPO Mill
The Supply Chain model applied at SOU 21 Gunung Mas grouping - POM during this Annual Surveillance Assessment (ASA-04) cum Extension of Scope is Segregation – CPO Mills: SG
Details of findings are as follows:
D.1 Documented procedures Indicators Findings and Objective Evidence Compliance D.1.1 SCC Module D (SG): Complied The facility shall have written procedures and/or work Standard Operation Procedure Doc. No. : Appendix 15 instructions to ensure the Sime Darby Plantation Quality Management System implementation of all the elements Manual titled SOP for Traceability and RSPO Supply Chain specified in these requirements. Certification System dated March 2013 documented the This shall include at minimum the implementation of a Segregation (SG) model Supply Chain following: Certification at the Palm Oil Mill, that included all the a) Complete and up to date requirements for controlling the FFB receipt, processing, procedures covering the sales, CPO and PK dispatch, training and claims for implementation of all the elements Module D Segregation for the Palm Oil Mill. Verified that in these requirements all the elements of the supply chain requirements were implemented. b) The name of the person having Audit interviews with the Palm Oil Mill Manager, Mr Shahrin Complied overall responsibility for and Bin Sahuri and staff further confirmed that authority over the implementation a) Mr Asma’i Fayyadh bin Abdul Samad (assistant of these requirements and manager ) has been appointed as the PIC for the compliance with all applicable requirements. This person shall be overall responsibility and authority over the able to demonstrate awareness of implementation of the requirements of Module D. the facilities procedures for the b) he and other relevant staff under his charge
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INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296 W)
Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd Page 40 of 49 SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope implementation of this standard. demonstrated competence, skill and knowledge of the RSPO Supply Chain Certification Standard Module D requirements for the respective areas of operations.
The Palm Oil Mill Organization Chart and job responsibilities of employees (Mill Manager, Assistant Manager, Engineers, Assistant Engineers, Technicians, Security Officer, Weighbridge Operator, Laboratory Attendant, Chief Clerk, clerks) have been suitably defined in the Sime Darby Quality Management System Manual. D.1.2 SCC Module D (SG): Complied The facility shall have documented procedures for receiving and • Standard Operation Procedure titled SOP for processing certified and non Traceability and RSPO Supply Chain Certification certified FFBs. System has documented the implementation of a Segregation (SG) model Supply Chain Certification at the Palm Oil Mill, that included all the requirements for controlling the FFB receipt, processing, sales, CPO and PK dispatch, training and claims for Module D Segregation for the Palm Oil Mill. Verified that all the elements of the supply chain requirements were implemented. • Verified from receiving documents (FFB Despatch Chit and Weighbridge Ticket) and production records that the Palm Oil Mill receives all FFB supplied from certified sources i.e. their own 4 estates and certified FFB from other Sime Darby PMUs within the region. See details in section 1.8 of this report.
Confirmed that there was no supply of FFB from sources which were non certified. D.2 Purchasing and goods in Indicators Findings and Objective Evidence Compliance D.2.1 All supplies of FFB were subjected to verification of FFB Complied The facility shall verify and document the volumes of certified Consignment Notes /FFB Despatch Weighbridge Ticket by and non certified FFBs received. weighbridge personnel and quality checks (Crop Quality Report (grading chit) by the mill personnel to determine the origin, quantity and quality of the FFB. The FFB Despatch Chit indicated the date, vehicle number, estate & field number, harvesting date, security seal number and weight.
Daily record on receipt of FFB detailed the supplying estates , time in/out, weighbridge ticket number, vehicle number, weight (gross, tare & nett) and actual average bunch weight. FFB Quality Report detailed the supply estate, nett weight, bunch quality, and date & time check and consignment note number.
Monthly FFB and CPO/PK Report and YTD (Year To Date) Report for the period July 2013 to present were audited / verified and found to have complied with requirements of the Segregated (SG) module whereby the Palm Oil Mill received and processed FFB from its own 4 estates and other crop from Sime Darby certified estates.
Intertek RSPO Report: April 2014
INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296 W)
Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd Page 41 of 49 SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope
D.2.2 The documented Standard Operation Procedure titled SOP Complied The facility shall inform the CB for Traceability and RSPO Supply Chain Certification immediately if there is a projected System dated March 2013 has specified an internal overproduction. monitoring and reporting mechanism for notifying the CB of production variations that includes projected overproduction. D.3 Record keeping Indicators Findings and Objective Evidence Compliance D.3.1 SOP stipulates that records of transaction (goods in and Complied The facility shall maintain accurate, complete, up to date and goods out) and production records of FFB, CPO and PK accessible records and reports are done daily. It was verified implemented and all records covering all aspects of these were summarised monthly covering all aspects of SCC requirements. requirements. D.3.2 The SOP stated a retention period of at least 5 years for all Complied Retention times for all records and reports shall be at least five (5) records and reports. Pertinent records are properly filed, years. accessible and retrievable. The main records retained are Weighbridge Tickets, FFB Consignment Notes , FFB Received Notes , CPO Despatch Notes, MPOB L3 forms, CPO Despatch Authorisation Notes D.3.3 A volume balance recording system was implemented to Complied The facility shall record and show the FFB deliveries, CPO and PK production and balance all receipts of RSPO dispatch that were tabulated monthly. certified FFB and deliveries of RSPO certified CPO, PKO and palm kernel meal on a three monthly basis. D.3.4 Stamp prepared for indicating the SG Module of the Supply Complied The following trade names should Chain model as ‘CSPO/SG’ on the relevant documents e.g be used and specified in relevant FFB delivery documents, weighbridge tickets, delivery documents, e.g. purchase and orders. sales contracts, e.g. *product name*/SG or Segregated. The supply chain model used should be clearly indicated. D.4 Sales and good out Indicators Findings and Objective Evidence Compliance D.4.1 Sales contracts/invoices and dispatch of CPO and PK with Complied The facility shall ensure that all sales invoices issued for RSPO the identification of contract number. Dispatched CPO and certified products delivered include PK found to be accompanied by relevant documents such the following information: as weighbridge ticket, delivery order, gate pass, MPOB L3 a) The name and address of the Form that clearly state the following: a) to e). (See below) buyer; a) The name and address of the buyer; b) The date on which the invoice b) The date on which the invoice was issued; was issued; c) A description of the product, including the applicable supply c) A description of the product, chain model (Segregated) including the applicable supply d) The quantity of the products delivered; chain model (Segregated) d) The quantity of the products e) Reference to related transport documentation. delivered; e) Reference to related transport documentation. D.5 Processing Indicators Findings and Objective Evidence Compliance
Intertek RSPO Report: April 2014
INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296 W)
Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd Page 42 of 49 SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope
D.5.1 The processing facility has established and implemented a Complied The facility shall assure and verify through clear procedures and clear procedure and mechanism for the RSPO CSPO/SG record keeping that the RSPO module. Review and on site verification confirmed that the certified palm oil is kept mechanism was implemented and in compliance with the segregated from non certified module requirements during receipt, transport and storage. material including during transport No contamination to the segregated physical material was and storage and be able to observed thus meeting the objective of 100% segregated demonstrate that is has taken all material. reasonable measures to ensure that contamination is avoided. The objective is for 100 % segregated The following audit findings confirmed that the mill has material to be reached. The demonstrated full compliance of D5.1 to D 5.3 including systems should guarantee the avoidance of contamination from uncertified materials. minimum standard of 95 % segregated physical material9; up to 5 % contamination is allowed. D.5.2 Documents and records examined found to show evidence Complied The facility shall provide documented proof that the RSPO of traceability of the CPO and PK produced to the FFB certified palm oil can be traced supplied. SG module was verified from the production and back to only certified segregated operational controls and records for the July 2013 to Feb material. 2014 production and the requirements were found to be adhered. D.5.3 CPO produced was stored in Storage Tank nos.1 to 4, Complied In cases where a mill outsources activities to an independent palm whilst the PK produced was stored in PK Bunker no.1 to 4. kernel crush, the crush still falls under the responsibility of the mill There is no PK crushing in the Palm Oil Mill. All PK are and does not need to be separately certified. The mill has to sold and dispatched to external plants for crushing. PK ensure that: delivered to Sime Darby Jomalina Sdn Bhd Kernel a) The crush operator conforms to Crushing Plant located in Carey Island, Banting as well as these requirements for segregation PGEO and PVO located in Pasir Gudang, Johor. Currently CPO delivered to Sime Darby Jomalina Sdn Bhd located in Selangor and Palmaju Edible Oil, Mehowaleo Industries, and Keck Seng which are located in Johor. b)The crush is covered through a The sales are covered by a contract with specified quantity, Complied signed and enforceable agreement and delivery quality requirements (% moisture, dirt etc).
Dispatch of CPO and PK to the external warehouse and buyer was carried out with relevant documents appropriately signed and traceable to the contracts. D.6 Training Indicators Findings and Objective Evidence Compliance D.6.1 Training for mill personnel had been done by Sime Darby Complied The facility shall provide the training for all staff as required to HQ personnel and records have been maintained at the implement the requirements of the mill office. Interviews conducted with mill personnel Supply Chain Certification confirmed their awareness and knowledge of the Supply Systems. Chain Certification Systems and in particular, the SG module. D.7 Claims Indicators Findings and Objective Evidence Compliance D.7.1 Based on the records verified at site in the mill, there have Complied. The facility shall only make claims regarding the use of or support of been no claims that can constitute a breach of the RSPO RSPO certified palm oil that are in Rules for Communications and Claims as to date. compliance with the RSPO Rules
Intertek RSPO Report: April 2014
INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296 W)
Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd Page 43 of 49 SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope for Communication and Claims.
3.1.2 Status on Supply Chain on POM: Based on the documents and records presented during the on site verifications made, it is concluded that the SDPSB POM has been able to comply with the requirements of the RSPO SCCS under the ‘SG’ module and is thus eligible for ‘SG’ trading for its palm products for year 2013 / 2014.
3.2 Status of Identified Noncompliance and Corrective Actions, Observations and Positive Elements. The status of the Noncompliances (NCR) and Observations (OBS) identified against the MYNI Compliance Indicators is as per the details below: Assessment Type Year Noncompliance (NCR) Observations (OBS) Main Assessment 2009 3 7 Annual Surveillance 2011 0 8 Assessment (ASA 01) Annual Surveillance 2012 0 2 Assessment (ASA 02) Annual Surveillance 2013 1 0 Assessment (ASA 03) Annual Surveillance 2014 1 2 Assessment (ASA 04) cum Extension of Scope
• Year 2013 – Annual Surveillance Assessment (ASA-03) NCR # Indicator/ Details of NCR ( in year 2013 ) Category
1 of 1 4.1.2 Date issued: 22 Feb 2013 Date due: 21 Mar 2013 Date closed: 14 March 2014 Minor Nonconformance: The name of the material used had been omitted on some of the pages in fertilizer application and insecticide spraying/application records in Bukit Paloh Estate. Corrective Action (replied): (replied on 6 March 2013) Each of the said pages have been corrected by filling in names of the materials used. Verification: The name of the material used has been recorded suitably in fertilizer application and insecticide spraying application records in Bukit Paloh Estate, Yong Peng Estate and Kempas Klebang estates.
• Year 2014 – Annual Surveillance Assessment (ASA-04) cum Extension of Scope NCR # Indicator/ Details of NCR ( in year 2014) Category
1 of 1 4.8.1 Date issued: 14 March Date due: 13 April 2014 Date closed: 2014 Major Further verification at next assessment (Re certification)
Intertek RSPO Report: April 2014
INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296 W)
Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd Page 44 of 49 SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope
Nonconformance: In Yong Peng Estate, Field 96A, a group of new workers (on their 7th day of working) were pruning the excess fronds from the palms. They did not wear helmets and the first aid kit was not available on site. These items had been provided by the estate management. Although training was provided to these workers, the effectiveness evaluation of training provided to this group of workers was not done appropriately . Also , in future , to ensure all contract workers receive adequate training prior to commencement of work, and their level of understanding towards the training is satisfied. Records of training shall be maintained adequately.
Corrective Action (replied): The effectiveness evaluation of training provided to this group of workers has been done appropriately on 17/03/2014. Training evaluation records for Yong Peng estate were established and filed for reference. Verification: Corrective actions taken by the PMU considered to be adequate and acceptable. Further verification at next assessment for effective closure.
3.2.1 Summary of Observations: The 2 Observations (OBS) identified during this assessment are as per below. Note: The progress made on the observations listed will be reviewed during the subsequent surveillance assessment on the action and implementations taken.
• Year 2013 – Annual Surveillance Assessment (ASA-03) - Nil • Year 2014 – Annual Surveillance Assessment (ASA-04) cum Extension of Scope - 2 Status MYNI Opened Closed Follow up remarks Ref No: Location Details of Observation Indicator date date (if any)
Year 2014 – Annual Surveillance Assessment (ASA-04) cum Extension of Scope - 2 1 of 2 4.3.2 Kempas Water Conservation 14 March Klebang Terraces (WCT) had been 2014 estate constructed on slope between 2° to 6°. However, additional WCT ‘s should be constructed to enhance the water conservation in the fields. 2 of 2 6.9.1 In the mill and all estates, 14 March the awareness building 2014 activities on sexual harassment issues are focusing on female workers. Sime Darby Gender Policy and sexual harassment awareness building for male workers is limited to muster ground briefing which is insufficient and only on
Intertek RSPO Report: April 2014
INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296 W)
Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd Page 45 of 49 SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope
case by case basis.
3.2.2 Identified Positive Elements 1. SOU 21 Gunung Mas POM has maintained a high standard of housekeeping and cleanliness by implementing an effective 5S quality environment system. 2. Good quality creches have been established and maintained in the SOU21 estates. 3. Latest line site houses provided indiacte a higher quality aesthetic finishing for benefit of workers.
3.3 Feedback Raised by Stakeholders and Findings
Intertek had obtained some written and verbal feedback from the stakeholders on the environmental and social performance of SOU 21 Gunung Mas grouping operations in the course of assessment and consultations. During the Annual Surveillance Assessment (ASA 04) cum Extension of Scope, all pertinent feedback issues were reviewed and followed up for verification and these had been accordingly incorporated into the report findings. See table below:
Stakeholders’ Feedback PMU Response Intertek verification / Further action comment on further from PMU (if any) action (if any) Government Agencies Comunication done via email on 29 January 2014. See list under para 2.5.
Received request from Forestry Department Peninsular Malaysia on 12 Feb 2014 to No response needed. Verified during on site Nil request Intertek to assessment that no communicate to Forestry response is needed. Department Johor. Intertek responded to them by clarifying that communication had also been simultaneously sent to Forestry Department Johor. No further enquiries raised.
Received comment from No response needed. Verified during on site Nil MPOB on 31Jan 2014 to inform assessment that no Intertek that MPOB has not response is needed. received any complaints regarding SOU21 and that all oil palm regulations have been complied with by SOU21 management.
Non-Governmental
Organizations Comunication done via email Ongoing consultations will be Verified during on site Nil on 29 January 2014. See list maintained. assessment that no
Intertek RSPO Report: April 2014
INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296 W)
Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd Page 46 of 49 SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope under para 2.5. No response needed. response is needed.
No feedback received. Local Communities NUPW representatives Request has been approved Only RM10 monthly Nil requested monthly RM10 deduction from workers contribution from the PMU for pay slip for Great personal assurance scheme Eastern Insurance subscribed from Great Eastern premium payment Insurance agency. Total verified during the monthly premium for the audit. Balance RM10 to assurance scheme is RM20. make the total of RM20 is covered by the PMU. School managements as well Request has been approved. Letters stating the Nil as teacher parent groups amount donated requested for some donations addressed to nearby from the PMU to conduct schools were verified activities such as camping and during the audit. sports day. Teachers from schools where Invitations were accepted. Photos from the Nil the children from the estates functions and invitation are getting their education were letters to the schools invited to functions in the PMU were verified during the when the school children audit. performing for the public. Other Interested parties Comunication done via email No response needed. Verified during on site Nil on 29 January2014. See list assessment that no under para 2.5. response is needed.
Intertek RSPO Report: April 2014
INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296 W)
Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd Page 47 of 49 SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope
4.0 ASSESSMENT CONCLUSION AND RECOMMENDATION
Based on the findings above, Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping had been able to demonstrate its compliance with the RSPO Principles and Criteria (April 2013), Malaysian National Interpretation (MY NI 2010) and the RSPO Supply Chain Certification Standard (November 2011) for Palm Oil Mill.
Therefore, it is recommended that the certification of Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping be approved and continued.
Signed for and on behalf of Intertek Certification International Sdn Bhd
Mohan Thavarajah
Mohan Thavarajah Lead Assessor
Date: 16 April 2014
4.1 Acknowledgement of Internal Responsibility and Confirmation of Assessment Findings
This is to acknowledge and confirm the assessment visits described in this report and the acceptance of the contents and findings in this assessment report.
Signed for and on behalf of Sime Darby Plantation Sdn Bhd (SDPSB)
Abdullah Bin Saminan Senior Manager Gunung Mas grouping
Date: 16 April 2014
Intertek RSPO Report: April 2014
INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296 W)
Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd Page 48 of 49 SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope
4.2 Intertek RSPO Certificate details for SOU 21 Gunung Mas grouping
Certificate No: RSPO 901888 Issue date: 19 May 2010 Expiry date: 18 May 2015 Organization Sime Darby Plantation Sdn Bhd Address of Head Office: Wisma Guthrie, 21, Jalan Gelenggang, 50490, Bukit Damansara, Kuala Lumpur RSPO Membership No: 1 0008 04 000 00 Plantation Management Unit: SOU 21 Gunung Mas grouping Address of POM: KKS Gunung Mas, K/B No. 524, 86009 Kluang, Johor, West Malaysia. Standards: RSPO Principles and Criteria (April 2013); Malaysian National Interpretation (November 2010); RSPO Supply Chain Certification Standards (November 2011) for the Palm Oil Mill. Certification scope: Production of Crude Palm Oil and Palm Kernels Supply Chain model for Segregation CPO & PK:
Details of the Mill and Supply bases covered by this certificate and the tonnage approved are: Total annual volumes / tonnages of FFB supplied from the supply base to SOU 21 Gunung Mas grouping POM during the previous period, current Annual Surveillance Assessment (ASA 04) cum Extension of Scope period and projected period are as follows:
FFB Processed in FFB Processed for FFB Processed in Estate / Supplier 2013 / 2014 2014 / 2015 2012 / 2013 - Actual + Projected - Projected MT % MT % MT % SOU 21 Gunung Mas 191,346.26 66.71 *243,213.62 76.75 *267,703.77 80.26 grouping Other certified Sime 95,507.84 33.29 73,687.20 23.25 65,834.88 19.74 Darby estates Other Suppliers (OCP) 0.00 0.00 0.00 0.00 0.00 0.00 Total 286,854.10 100 316,900.82 100 333,538.65 100 SCCS Model for POM SG SG SG *Note: This figures include Yong Peng which is now under the SOU 21 Gunung Mas grouping FFB Processed in 2013 / 2014- Actual + Projected and projected figures for 2014 / 2015
The annual certifiable tonnages of CPO and PK production by SOU 21 Gunung Mas grouping from the supply base/suppliers as assessed and verified during the current Annual Surveillance Assessment (ASA 04) cum Extension of Scope (based on 2013 / 2014 data) are detailed as follows:
2013 / 2014 2014 / 2015 POM 2012 / 2013 - Actual + Projected - Projected
Total FFB 286,854.10 316,900.82 333,538.65
Intertek RSPO Report: April 2014
INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296 W)
Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd Page 49 of 49 SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope
Processed (MT) Total CPO 63,308.70 OER: OER: OER: 71,302.68 75,046.20 Production (MT) 22.07% 22.50% 22.50% Total PK 15,776.98 KER: KER: KER: 17,429.55 18,344.63 Production (MT) 5.50% 5.50% 5.50%
Intertek RSPO Report: April 2014