SIME DARBY PLANTATION SDN BHD

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

PLANTATION MANAGEMENT UNIT SOU 12 Jabor Kemaman, Terengganu, Malaysia

INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)

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SURVEILLANCE ASSESSMENT REPORT ON RSPO CERTIFICATION

PUBLIC SUMMARY REPORT

SIME DARBY PLANTATION SDN BHD

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

PLANTATION MANAGEMENT UNIT SOU 12 Jabor Kemaman, Terengganu, Malaysia

Certificate No: RSPO 928288 Issued date: 7 Jul 2011 Expiry date: 6 Jul 2016

Assessment Type Assessment Dates Initial Certification 15 May 2009 (Main Assessment) Annual Surveillance Assessment (ASA-01) 25-28 Jun 2012 (cum Transfer) Annual Surveillance Assessment (ASA-02) 03-07 Jun 2013

Annual Surveillance Assessment (ASA-03) 20-22 May 2014

Annual Surveillance Assessment (ASA-04) 18-20 May 2015

Re-Certification

Intertek Certification International Sdn Bhd (formerly known as Moody International Certification (Malaysia) Sdn Bhd) 6-L12-01, Level 12, Tower 2, Menara PGRM No. 6 & 8 Jalan Pudu Ulu, Cheras, 56100 Kuala Lumpur, Malaysia. Tel: +00 (603) 9283 9881 Fax: +00 (603) 9284 8187 Email: [email protected] Website: www.intertek.com

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TABLE OF CONTENTS

Section Content Page No 1.0 SCOPE OF ASSESSMENT 4 1.1 Introduction 4 1.2 Location (address, GPS and map) mill, estates and hectarage 4 1.3 Description of supply base (fruit sources) 4 1.4 Year of plantings and cycle 5 1.5 Summary of Land Use – Conservation and HCV Areas 5 1.6 Other certifications held and Use of RSPO Trademarks 5 1.7 Organizational information/contact person 5 1.8 Tonnages Verified for Certification 6 1.9 Time Bound Plan 7 1.10 Abbreviations Used 8 2.0 ASSESSMENT PROCESS 9 2.1 Assessment Methodology, Plan & Site Visits 9 2.2 Date of next scheduled visit 9 2.3 Qualifications of the Lead Assessor and Assessment Team 9 2.4 Certification Body 9 2.5 Process of Stakeholder consultation 10-11 3.0 ASSESSMENT FINDINGS 12 3.1 Summary of findings 12-45 3.2 Status of Identified Noncompliance and Corrective Actions, Observations and 45-49 Identified Positive Elements 3.3 Summary of Feedback Received from Stakeholders and Findings 49-51 4.0 ASSESSMENT CONCLUSION AND RECOMMENDATION 52 4.1 Acknowledgement of Internal Responsibility and Confirmation of Assessment Findings 52

4.2 Intertek RSPO Certification Details for the PMU 53

APPENDICES Appendix A Qualifications of the Lead Assessor and Assessment Team 54 Appendix B Assessment Plan 55 Appendix C Maps of location – Mill, Estates, Conservation and HCV areas 56-59 Appendix D Photographs of Assessment findings at the PMU 60 Appendix E Time Bound Plan for Other Plantation Management Units 61-64

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1.0 SCOPE OF ASSESSMENT

1.1 Introduction This Surveillance Assessment was conducted on the Plantation Management Unit (PMU) Jabor of Sime Darby Plantation Sdn Bhd (hereafter abbreviated as SDPSB), from 18-20 May 2015, to assess the organization’s operations of the mill and its supply bases for compliance against the RSPO Principles and Criteria (Apr 2013), Malaysian National Interpretation (MYNI 2014) and the RSPO Supply Chain Certification Standard (Nov 2014) for the Palm Oil Mill.

The plantation management unit (PMU) or management unit is equivalent to a certification unit as defined in the RSPO Certification Systems Document. Each PMU consists of one mill and its supply bases which are made up of estates owned and/or managed by SDPSB.

1.2 Location (address, GPS and map) of palm oil mill and estates SOU 12 Jabor consists of one (1) palm oil mill, namely Jabor Palm Oil Mill and one (1) estate 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

Jabor Palm Oil Mill Mukim Hulu Jabor, Kemaman, Terengganu (POM capacity: 3°55.92” N 103°18.25’ E (Ladang Jabor, KB No. 7, 25990 Kuantan, Pahang) 25 MT/hr) Mukim Hulu Jabor, Kemaman, Terengganu Jabor Estate 3°55.92” N 103°18.25’ E (Ladang Jabor, KB No. 7, 25990 Kuantan, Pahang)

1.3 Description of supply base (fruit sources)

The supply base, i.e. FFB sources to the POM at Jabor PMU, are from the abovementioned single estate owned by SDPSB and other independent suppliers/smallholders known as Outside Crop Producers (OCP). The supply of FFB from the OCP has been categorized as non-certified FFB. . Note: Progress of the 3 year implementation plan towards compliance with the relevant RSPO standards for the OCP has been monitored by SDPSB. SDPSB confirmed that their OCP were not yet prepared for compliance.

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

Table 2: Estate Area Summary

Area Summary (ha) Area Summary (ha) – 2013 / 2014 – 2014 / 2015 Estate Certified Planted Certified Planted (Titled) Area Area (Titled) Area Area Jabor Estate 2,232.08 2,122.40 2,232.08 2,122.40 Total: 2,232.08 2,122.40 2,232.08 2,122.40 Note: The entire Jabor estate currently consists of 273 individual plots of land titles which was re-surveyed and updated in 2013. Some land areas were deducted due to the development of the expressway road by the State

Government across the Jabor estate plots.

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1.4 Summary of plantings and cycle The year of plantings and age profile for the estate are as shown in Table 3 below.

Table 3: Age Profile of Planted Oil Palm 2014 / 2015

Mature OP (ha) Immature OP (ha) Estate Name Year of Planting Cycle of Planting – Above 3 years – 3 years & below Jabor Estate 1994 - 2013 2nd 1,979.91 142.49 Total 1,979.91 142.49 Note: There has been no New Planting in the estate at the certified areas since Nov 2005.

1.5 Summary of Land Use - Conservation and HCV Areas The summary of Conservation and HCV Areas as identified in the PMU during this assessment is as shown in Table 4 below:

Table 4: Conservation and HCV Areas

# Statement of Land Use (Ha) 2013 / 2014 2014 / 2015 (ASA-03) (ASA-04) Hectarage – Ha Hectarage – Ha 1 Planted Area (ha) – Oil Palm

 Mature 1,838.13 1,979.91

 Immature 284.27 142.49 2 Conservation Area (ha)

 comprising buffer zones along small streams, hilly 16.26 16.26 areas, swampy and unplantable areas 3 HCV Area (ha)

 comprising buffer zones near forest reserves, water 4.79 4.79 catchments, burial & religious sites Note: It was verified during this surveillance assessment that there have been no significant changes in the conservation and HCV areas since the last assessment.

1.6 Other certifications held and Use of RSPO Trademarks There are currently no other certifications held by the 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” during the assessment.

1.7 Organizational information / Contact Person

At Head Office: Ms Sabarinah 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

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Email: [email protected]

Name: Mr. Sharir Abdullah Sadali Mill Manager Jabor Palm Oil Mill, KB No.7,25990 Kuantan, Pahang. Tel: 609 5519260 Fax: 609 5519286 Email: [email protected]

1.8 Tonnages Verified for Certification

1.8.1 The breakdown of all the suppliers and their tonnages of FFB supplied to the POM at Jabor based on the reporting period for 2014 / 2015 are as shown in Table 5 below:

Table 5: Tonnages Verified for Certification (Reporting period 01 Jul 2014 until 30 Jun 2015 - Actual 9 months + projected 3 months)

# Estate /Supplier FFB Processed (MT) Main Receiving Mill Certified by (Year) 1 Jabor Estate 38,075 Jabor Palm Oil Mill Intertek (2011) Sub-total (SOU of SDPSB) 38,075

Subject to contractual Not certified yet 2 Bumi Tech 473 agreements with various POMs Subject to contractual Not certified yet 3 Ladang Koperasi Polis 517 agreements with various POMs Subject to contractual Not certified yet 4 Mega Oil Palm 4,302 agreements with various POMs Subject to contractual Not certified yet 5 Sern Lee Enterprise 511 agreements with various POMs Subject to contractual Not certified yet 6 Yee Plantation 6,069 agreements with various POMs Subject to contractual Not certified yet 7 Eng Huat 38 agreements with various POMs

Sub-total Other Suppliers - Note: 11,910 (OCP) OCPs supply is uncertified FFB

Grand total 49,985

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1.8.2 Total annual tonnages of FFB supplied from the supply base to Jabor POM during the previous period, current assessment and projected period are as shown in Table 6 below:

Table 6: FFB Processed by POM for 3-Years Reporting Period

FFB Processed in FFB Processed for FFB Processed in Estate / 2014 / 2015 2015 / 2016 2013 / 2014 Supplier Actual + Projected 3 months - Projected (01 Jul 2013 – 30 Jun 2014) (01 Jul 2014 -30 Jun 2015) (01 Jul 2015 - 30 Jun 2016) MT % MT % MT % SOU 12 Jabor 40,137 66 38,075 76 42,813 58 Other Suppliers (OCP) - 20,258 34 11,910 24 31,000 42 Uncertified Total 60,395 100 49,985 100 73,813 100 SCCS Module MB MB MB for POM

1.8.3 The annual certified tonnages of CPO and PK production by the PMU from the supply base/suppliers as assessed and verified during the current assessment (based on 2014 / 2015 data) are detailed as shown in Table 7 below:

Table 7: Total Certified Tonnages of CPO and PK for 3-Years Reporting Period

2014 / 2015 2015 / 2016 POM 2013 / 2014 - Actual + Projected - Projected Total certified FFB 40,137 38,075 42,813 Processed (MT) Total certified CPO OER: OER: OER: 8,521 7,642 9,582 Production (MT) 21.23% 20.07% 22.38% Total certified PK KER: KER: KER: 2,368 2,170 2,534 Production (MT) 5.90 % 5.70% 5.92%

Note: The POM has established and maintained procedures for the book keeping and monitoring requirements for the CPO at the mill and was verified to be adopting the ‘Mass Balance – MB’ module in accordance with the RSPO Supply Chain Certification Standard (Nov 2014) requirements. Verified activities and checked items for the SCCS of the POM are reported in section.3.1.1. The POM meets all the requirements for the MB Module.

1.9 Time Bound Plan for Other Plantation Management Units

SDPSB Group operates 29 and 24 palm oil mills with 200 oil palm estates in Malaysia and Indonesia respectively (as at Mar 2015). The organization is a member of RSPO since 08 Sep 2004 and has been taking an active role in the RSPO certification. Currently, all its Certification Units have completed RSPO certification except for one SOU in Indonesia that is pending due to some social disputes. Based on the due diligence conducted on SDPSB there were no significant land conflicts, no replacement of primary forest or any area containing HCVs since Nov 2005, no labour disputes that are not being resolved through an agreed process, no evidence of non-compliance with law in any of the non-certified 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.

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1.10 Abbreviations Used

CB Certification Body LTA Lost Time Accidents CHRA Chemical Health & Risk Assessment Intertek Intertek Certification International Sdn Bhd CPO Crude Palm Oil MSDS Material Safety Data Sheets CSDS Chemical Safety Data Sheets MTCS Malaysia Timber Certification Scheme CSPO Certified Sustainable Palm Oil NCR Non-Conformance Report CSPK Certified Sustainable Palm Kernel NGO Non-Government Organization EFB Empty Fruit Bunch OER Oil Extraction Rate EHS Environmental Health & Safety OHS Occupational Health & Safety EIA Environmental Impact Assessment PEFC Programme for the Endorsement of Forest Certification ETP Effluent Treatment Plant PK Palm Kernel FFB Fresh Fruit Bunch PMU Plantation Management Unit GAP Good Agriculture Practice POM Palm Oil Mill HCV High Conservation Values POME Palm Oil Mill Effluent IPM Integrated Pest Management PPE Personal Protective Equipment ISCC International Sustainability & Carbon Certification SCCS Supply Chain Certification Standard IUCN International Union for Conservation of Nature SDPSB Sime Darby Plantation Sdn Bhd KER Kernel Extraction Rate SOP Standard Operating Procedures

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2.0 ASSESSMENT PROCESS

2.1 Assessment Methodology, Plan and Site Visits

Since 09 Apr 2015, 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 JaborGrouping regarding the environmental, biodiversity, community development and other relevant issues.

From 18-20 May 2015, the Assessment team conducted the Surveillance Assessment in which the single estate of SOU 12 Jabor and the palm oil mill were assessed for compliance against the RSPO requirements.

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).

Jabor POM was also assessed against the requirements of RSPO Supply Chain Certification Standard (Nov 2014) for CPO mill. This part of the assessment covered the verification of implementation of documented procedures and availability of records to demonstrate compliance against all the elements for the ‘Mass Balance’ - MB Module requirements. These include documented procedure, purchasing and goods in, record keeping, sales and goods out, processing, monitoring and traceability of the CSPO and CSPK quantities, training for staff and claims.

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

After completion of the on-site field assessment, Intertek also performed the evaluation of conformity against the RSPO Certification System requirements for CB. The assessment report, findings and associated documents were evaluated through an independent review by the Intertek Internal Technical Reviewer/Panel prior to the approval of this report and decision on continued certification by Intertek.

2.2 Date of next scheduled visit

The next scheduled visit will be the Re-Certification Assessment which will be carried out within 3 months before the expiry date 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, occupational safety & health and product certification, RSPO SCC, ISCC, Marine Sustainability Chain-of-Custody, MTCS and PEFC Chain-of Custody certification in applicable industry sectors including the agricultural and forestry sectors. Intertek operates globally providing clients with a wide-ranging technical inspection expertise and access to thousands of skilled specialists worldwide. Intertek Group’s certification business is ranked in the top 10 worldwide, and is available globally offering certification across a wide range of industries.

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2.5 Process of stakeholder consultation

Stakeholder consultations began with notification of the upcoming assessment through the websites of RSPO, SDPSB and Intertek. E-mails were sent to applicable stakeholders including government agencies, NGOs and local communities. E-mails and telephone enquiries were made prior to the actual assessment and stakeholder’s response and feedback received were followed up accordingly.

During the assessment, stakeholders were interviewed and their feedbacks were recorded. Among the stakeholders consulted were workers, trade union leaders, women representatives; local community leaders, representatives of government departments / agencies, NGOs, suppliers and contractors.

Details on stakeholders’ feedback, PMU response and Intertek verification / comments are provided in section 3.3.

Among the list of key stakeholders consulted was the following:

Government Agencies (by emails) 1. Department of Lands And Mines (Kuala Lumpur) 2. Department of Environment (Kuala Lumpur) 3. Department of Forestry Peninsular Malaysia (Kuala Lumpur) 4. Department of Immigration (Kuala Lumpur) 5. Department of Irrigation & Drainage (Kuala Lumpur) 6. Department of Labour (Kuala Lumpur) 7. Department of Occupational Safety & Health (Kuala Lumpur) 8. Department of Orang Asli Affairs (Kuala Lumpur) 9. Department of Wildlife & National Parks (Kuala Lumpur) 10. Department of Environment, Pahang 11. Department of Forestry, Pahang 12. Department of Immigration, Pahang 13. Department of Irrigation & Drainage, Pahang 14. Department of Labour, Pahang 15. Department of Occupational Safety & Health, Pahang 16. Department of Wildlife & National Parks, Pahang 17. Land and Mines Office, Pahang 18. Pertubuhan Keselamatan Sosial (SOCSO), Pahang

Statutory Bodies (by emails) 19. Malaysian Palm Oil Board (MPOB) 20. Malaysian Palm Oil Board (MPOB) - Northern Region 21. Malaysian Palm Oil Board (MPOB) - Central Region 22. Malaysian Palm Oil Board (MPOB) - Southern Region 23. Malaysian Palm Oil Board (MPOB) - Eastern Region 24. Malaysian Palm Oil Board (MPOB) - Sarawak Region 25. Malaysian Palm Oil Board (MPOB) - Sabah Region 26. Malaysia Palm Oil Association (MPOA) 27. Malaysia Palm Oil Association Kuala Lumpur (MPOA) 28. Malaysia Palm Oil Association Sabah (MPOA)

NGOs (by emails) 29. All Women’s Action Society (AWAM) 30. BCSDM - Business Council for Sustainable Development in Malaysia 31. Borneo Child Aid Society (Humana) 32. Borneo Resources Institute Malaysia (BRIMAS) 33. Borneo Rhino Alliance (BORA) 34. Center for Orang Asli Concerns COAC 35. Centre for Environment, Technology and Development, Malaysia - CETDEM 36. Consumers Association Of Penang - CAP 37. EcoKnights 38. ENO Asia Environment 39. Environmental Management and Research Association of Malaysia (ENSEARCH) 40. Environmental Protection Society Malaysia (EPSM)

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41. Friends of the Earth, Malaysia 42. Future in Our Hands Society, Malaysia 43. Global Environment Centre 44. HUTAN - Kinabatangan Orang-utan Conservation Programme 45. Institute of Foresters, Malaysia (IRIM) 46. JUST - International Movement for a Just World 47. Malaysian CropLife & Public Health Association (MCPA) 48. Malaysian Environmental NGOs - MENGO 49. Malaysian National Animal Welfare Foundation – MNAWF 50. Malaysian Nature Society Pahang 51. Malaysian Plant Protection Society (MAPPS) 52. Mountaineering and Outdoor Pursuits Association of Negeri Sembilan 53. National Council of Welfare & Social Development Malaysia - NCWSDM 54. National Union of Plantation Workers (NUPW) 55. Partners of Community Organisations (PACOS) 56. Penang Institute previously known as Socio-Economic & Environmental Research Institute (SERI) 57. Pesticide Action Network Asia and the Pacific (PAN AP) 58. Proforest - South East Asia Regional Office 59. R.E.A.C.H. - Regional Environmental Awareness Cameron Highlands 60. SUARAM - Suara Rakyat Malaysia 61. SUHAKAM - National Human Rights Society - Persatuan Kebangsaan Hak Asasi Manusia 62. Sustainable Development Network Malaysia (SUSDEN) 63. Tenaganita Sdn Bhd 64. The Malaysian Forum of Environmental Journalist (MFEJ) 65. TRAFFIC Southeast Asia - Wildlife trade & trafficking monitoring programme 66. Transparency International - Malaysian Chapter 67. Treat Every Environment Special Sdn Bhd. (TrEES) 68. UNION – AMESU 69. United Nations Development Programme - UNDP Malaysia 70. Water Watch Penang (WWP) 71. Wetlands International (Malaysia) 72. Wild Asia Sdn Bhd 73. World Wide Fund for Nature (WWF) Malaysia

Local community (On-site interviews) 74. Consultative Committee & Gender representatives 75. Workers & Workers representatives 76. Village Heads & representatives 77. Suppliers & Contractors representatives

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3.0 ASSESSMENT FINDINGS

3.1 Summary of findings

Principle 1: Commitment to transparency

Criterion 1.1 Growers and millers provide adequate information to relevant stakeholders on environmental, social and legal issues relevant to RSPO Criteria, in appropriate languages and forms to allow for effective participation in decision making. Indicators Findings and Objective Evidence Compliance 1.1.1 There shall be The PMU had established and implemented the following documented Complied evidence that growers procedures for providing adequate information on environmental, social and millers provide and legal issues relevant to RSPO Criteria to relevant stakeholders for adequate information effective participation in decision making: upon request for information on (1) Standard Operating Procedure (SOP) Appendix 5 “Handling Social (environmental, social Issues” and/or legal) issues (2) Standard Operation Manual (SOM) Appendix 5.5.3.2 “Procedure for relevant to RSPO Criteria External Communication” to relevant stakeholders for effective participation The mill and estate management have responded effectively and in decision making. constructively to queries/requests/from their stakeholders. This was Minor Compliance evident from records of meetings and correspondences with stakeholders (such as local authorities, union committees and local community leaders) maintained for FY Jul 2014-Jun 2015.

Date of public notification of this assessment of the PMU was made on 09 Apr 2015.

1.1.2 Records of requests The PMU had established and maintained an updated list of internal Complied for information and stakeholders, external stakeholders, government departments/agencies, responses shall be consultants, contractors, suppliers, transporters, neighbouring estates, maintained. etc. Major Compliance The mill and estates have conducted their stakeholder consultation on 09 Feb 2015 and records of feedback, requests and responses have been suitably maintained. No negative remarks or complaints/ grievances were found.

Criterion 1.2 Management documents are publicly available, except where this is prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes. Indicators Findings and Objective Evidence Compliance 1.2.1 Management SDPSB’s policies were effectively displayed on notice boards and at Complied documents that are accessible locations at the mill and estates offices. Policies are made available to the available in English and Bahasa Malaysia. public shall include, but are not necessarily Management documents that are available to the public includes: limited to: Major Compliance - land titles/user rights, - occupational health and safety plan, - assessments relating to environment and social impacts, - pollution prevention plans, - details of complaints & grievances, - negotiation procedures

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- continuous improvement plans - Public summary of certification assessment report

These publicly available documents include key indicators of performance like waste management and disposal plans for the mill and estates. Also, Continual Improvement Action Plans include targets for waste reduction and pollution prevention.

 Land titles/user Land titles/user rights have been maintained adequately. No outstanding Complied rights (Criterion issues have arisen since the previous audit. 2.2); Copies of all land titles were available and have been maintained at the mill and respective estates. HQ kept the original copies.

 Occupational health Policy and HIRAC documented for the mill and estate. The HIRAC was Complied and safety plans also reviewed for the mill and estates. (Criterion 4.7); Environment, Safety and Health (ESH) Plan have been established and implemented for FY Jul 2014 - Jun 2015. The OSH Plan is part of the ESH Plan. The ESH Plan includes the establishment and implementation of CHRA, medical surveillance, Fire Drill training, First Aid training, Audiometric test, PPE training, etc. POM has conducted the Emergency Preparedness (ERP). Safety Committee meetings held quarterly in year 2014. Programmes for protecting workers’ health and safety were satisfactorily implemented.  Plans and impact Environmental aspect and impact assessment conducted for the POM Complied assessments and estates and significant aspects identified. relating to Social Impact Assessment carried out. Positive and negative impacts environmental and documented. social impacts (Criteria 5.1, 6.1, Management plans for social and environmental impacts assessment 7.1 and 7.8); have been established, implemented and monitored for FY Jul 2014-Jun 2015.

 HCV documentation The HCV Identification and Assessment was originally conducted in Jan Complied summary (Criteria 2009 and documented as the Biodiversity Baseline Assessment Report. 5.2 and 7.3); It was verified that the Management Action Plans for HCV and Conservation areas were being implemented and monitored at the respective estates.

 Pollution prevention Pollution Prevention Plans established for FY Jul 2014 - Jun 2015 Complied and reduction plans include measures for pollution control (smoke emission, effluent (Criterion 5.6); discharge), schedule wastes (used lubricants, empty pesticides containers, used batteries, tyres), clinical waste and organic/domestic wastes disposal, reuse and recycling (paper, glass, scrap iron), pesticides reduction (POME, EFB and compost).

 Details of Details of complaints and grievances for FY Jul 2014 - Jun 2015 have Complied complaints and been addressed in the stakeholders meetings. grievances Complaints / queries and enquiries records for internal and external (Criterion 6.3); stakeholders were maintained. Actions found to be appropriately

implemented and recorded. Employees Consultative Council (ECC) representatives interviewed had confirmed that there were no serious issues.

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 Negotiation Negotiation SOP – App 3 of Sime Darby Plantation Quality Management Complied procedures System Manual had been documented. Current document in the SDP (Criterion 6.4); MS Manual dated 01 Nov 2008.

 Continual Continual Improvements Plans have been established for social, safety Complied improvement plans & health, environmental impacts, pollution prevention in the mill and (Criterion 8.1); estate operations for FY Jul 2014 -Jun 2015.

 Public summary of Public summary of certification assessment reports and their status are Complied certification made publicly available as per usual RSPO procedure. assessment report;

 Human Rights The Human Rights Policy has been documented and communicated to Complied Policy (Criterion all levels of the workforce and operations. Copies of the policy found to 6.13). be displayed at prominent locations in the POM and estate.

Criterion 1.3 Growers and millers commit to ethical conduct in all business operations and transactions. Indicators Findings and Objective Evidence Compliance 1.3.1 There shall be a The Policy of commitment to a Code of Ethical Conduct and Integrity has Complied written policy committing to a code of ethical been documented and signed by the President and Group CEO of conduct and integrity SDPSB and communicated to all levels of the workforce and operations. in all operations and Copies of the policy found to be displayed at prominent locations in the transactions, which shall POM and estates. be documented and There is a booklet containing details of the Code of Ethicsl for communicated to all employees of SDPSB Group of Companies. levels of the workforce and operations. Minor Compliance

Principle 2: Compliance with applicable laws and regulations Criterion 2.1 There is compliance with all applicable local, national and ratified international laws and regulations. Indicators Findings and Objective Evidence Compliance 2.1.1 Evidence of The PMU has a Legal Register containing the applicable local and Complied compliance with relevant international laws and regulations. Compliance to each law and legal requirements shall regulation is monitored by the PMU. be available. The relevant legislations identified and listed cover safety and health, Major Compliance environment, pollution management, chemical handling, usage & storage, schedule waste management, labour laws, Unions, EPF, SOCSO, Housing and Amenities. Based on the site observations, interviews and records checking at the field and mill, there was evidence of compliance with the relevant laws, regulations, local and international laws at the PMU. There were no cases of any violation or actions imposed by relevant authorities. Statutory returns to relevant authorities found to be in compliance. Quarterly Return Form as per 1st Schedule of the Environmental Quality (Prescribed Premises) (Crude Palm Oil

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Regulations 10(2), 1977) sighted. Licenses and permits were monitored for their expiry dates and found to be renewed. Examples verified were: License for Foreign Workers Employment, Workers Wages Deduction Permit, License for Controlled Items – Diesel and Fertilizer, MPOB license, DOSH Certificate, DOE license, BOMBA Fire Certificate, Energy Commission License, Insurance for foreign workers in estates. Environmental Quality Act 1974 and Environmental Quality (Scheduled Wastes) Regulations 2005: Scheduled wastes such as hydraulic and used motor oils, rags, empty chemical and lubricants containers collected at six monthly intervals by DOE licensed contractor. Weight and Measures Act 1972, regulations 16, 28A, 45): Weighbridges were duly calibrated. Factory and Machinery Act 1967, Regulations 1970: Steam engineers (Grade 1 and 2), boilermen and electricians were noted to be with valid certificates from relevant authorities (DOSH and Energy Commission). The POM has maintained a boiler register that indicate the date of commission, cleaned, inspected, tested or repaired. Valid certificates of fitness for boilers, sterilizers, air receivers, thermal deaerator, steam separator, vacuum oil dryer, etc. issued by DOSH. Valid license for diesel generators issued by Energy Commission (“Suruhanjaya Tenaga”). Valid licenses for authorized gas tester (ACT), authorized entrant and standby by person for confined space activities in POM. Occupational Health and Safety Act 1994: Safety and health meetings conducted at quarterly intervals. Noise Monitoring Report is available.

2.1.2 A documented The PMU has established and implemented a documented system for Complied system, which includes identifying, determining, reviewing and updating applicable legal and written information on other requirements. It included the listing of laws and regulations that legal requirements, shall were being monitored for changes and reference. be maintained. Minor Compliance 2.1.3 A mechanism for Evaluation of legal requirements and the PMU compliance status to each Complied ensuring compliance shall legal requirement is monitored continuously. Latest evaluation was be implemented. conducted on 03 Feb 2015. Minor Compliance No licenses or permits found to be invalid or expired during the audit.

2.1.4 A system for The Sustainability Team from SDPSB supports the PMU to ensure all Complied tracking any changes in applicable laws including international and ratified conventions the law shall be applicable in Malaysia to their operations are listed in their Legal implemented. Register. The PMU also track the changes in legal requirements. Minor Compliance Criterion 2.2 The right to use the land is demonstrated, and is not legitimately contested by local people who can demonstrate that they have legal, customary or user rights. Indicators Findings and Objective Evidence Compliance 2.2.1 Documents showing Copies of the land titles of the estate were maintained and found to be in Complied legal ownership or lease, history of land tenure proper order. The original copies are maintained by the Corporate Head (confirmation from Office. community leaders based Land titles were verified including payment of land tax (quit rent) during on history of customary the audit. Land ownership found to be in order. There is no change in land tenure, recognised the land ownership since the last assessment. Native Customary Right (NCR) land) and the The legal use of the land was confirmed to be without restriction. It is

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2.2.2 There is evidence Locations of several boundary stones and pole markers were visited and Complied that physical markers are located and visibly verified to be within the boundary parameters of the estate. maintained along the legal Demarcation was also evidenced by the dug up trenches and drains boundaries particularly which were adjacent to neighboring estates. adjacent to state land, NCR land and reserves. Minor Compliance

2.2.3 Where there are or There has been no dispute on the land rights in the PMU. Complied have been disputes, As such, the process of fair compensation and FPIC is currently not additional proof of legal applied. acquisition of title and evidence that fair compensation has been made to previous owners and occupants shall be available, and that these have been accepted with free, prior and informed consent (FPIC). Minor Compliance

2.2.4 There shall be an The estate lands at the PMU are legally owned by SDPSB with freehold Complied absence of significant titles and no restriction set on land use. There are no other users in the land conflict, unless land area. requirements for The existing estates are not encumbered by any customary land rights acceptable conflict resolution processes (see and there is no land conflict. Criteria 6.3 and 6.4) are implemented and accepted by the parties involved. Major Compliance

2.2.5 For any conflict or The estate lands at the PMU are legally owned by SDPSB with freehold Complied dispute over the land, the titles and no restriction set on land use. There are no other users in the extent of the disputed land area. area shall be mapped out The existing estates are not encumbered by any customary land rights in a participatory way with involvement of affected and there is no land conflict. Therefore participatory mapping is not parties (including required. neighbouring communities and relevant authorities where applicable). Minor Compliance

2.2.6 To avoid escalation The estate lands at the PMU are legally owned by SDPSB with freehold Complied of conflict, there shall be titles and no restriction set on land use. There are no other users in the no evidence that palm oil land area. operations have instigated No conflict or dispute over the lands in the PMU. violence in maintaining No incident of violence being instigated in their current and planned peace and order in their operations. current and planned operations. Major Compliance

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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 The estate lands at the PMU are legally owned by SDPSB with freehold Complied appropriate scale showing titles and no restriction set on land use. There are no other users in the the extent of recognised land area. legal, customary or user The existing estates are not encumbered by any customary land rights rights (Criteria 2.2, 7.5 and 7.6) shall be and there is no land conflict. Therefore participatory mapping is not developed through required. participatory mapping involving affected parties (including neighbouring communities where applicable, and relevant authorities). Major Compliance 2.3.2 Copies of negotiated The estate lands at the PMU are legally owned by SDPSB with freehold Complied agreements detailing the titles and no restriction set on land use. There are no other users in the process of free, prior and land area. informed consent (FPIC) No conflict or dispute over the lands in the PMU. (Criteria 2.2, 7.5 and 7.6) There is no infringement of any legal rights that require free, prior and shall be available and informed consent (FPIC). shall include: a) Evidence that a plan has been developed through consultation and discussion with all affected groups in the communities, and that information has been provided to all affected groups, including information on the steps that shall be taken to involve them in decision making; b) Evidence that the company has respected communities’ decisions to give or withhold their consent to the operation at the time that this decision was taken; c) Evidence that the legal, economic, environmental and social implications for permitting operations on their land have been understood and accepted by affected communities, including the implications for the legal status of their land at the expiry of the company’s title, concession or lease on the land. Minor Compliance 2.3.3 All relevant The estate lands at the PMU are legally owned by SDPSB with freehold Complied information shall be titles and no restriction set on land use. There are no other users in the available in appropriate land area. forms and languages, No conflict or dispute over the lands in the PMU. As such, this process

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Report No.: R9282/12-4 Sime Darby Plantation Sdn Bhd Page 18 of 66 SOU 12 Jabor: Surveillance Assessment ASA-04 including assessments of is not available for verification. impacts, proposed benefit sharing, and legal arrangements. Minor Compliance 2.3.4 Evidence shall be The estate lands at the PMU are legally owned by SDPSB with freehold Not applicable available to show that titles and no restriction set on land use. There are no other users in the communities are land area. represented through No conflict or dispute over the lands in the PMU. As such, this process institutions or is not available for verification. representatives of their own choosing, including legal counsel. Major Compliance

Principle 3: Commitment to long-term Economic & Financial Viability Criterion 3.1 There is an implemented management plan that aims to achieve long-term economic and financial viability.

Indicators Findings and Objective Evidence Compliance 3.1.1 A business or Palm Oil Mill had documented Business / Management Plan for the Complied management plan current FY 2014/2015 and the next four (4) years with details of budget (minimum three years) and costs of operation that include the following: shall be documented that includes, where (1) Mill extraction rates = OER and KER trends; appropriate, a business (2) Cost of Production = Cost/MT CPO trends; case for scheme smallholders. (3) Forecast prices; Major Compliance (4) Financial indicators = Capital Expenditure, Cost of labour & services, cost of supplies and equipment, depreciation costs, salary costs, management costs, cost of materials, etc.

The estates have Business / Management Plan for the current FY 2014/2015 and the next four (4) years with details of budget and costs of operation that include the following: (1) Replanting program (planting materials DxP seedling); (2) Crop projection = FFB yield/ha trends; (3) Cost of Production = Cost/MT FFB trends; (4) Forecast prices; (5) Financial indicators = Capital Expenditure, Cost of labour, cost of facilities, cost of materials, etc.. Crop and operation budget cover weeding, manuring, harvesting, collection and transporting, pruning, drains and roads. The budgets also include provisions for sustainability efforts and improvement programmes (environmental aspects on road maintenance, domestic waste collection, maintenance of buffer zones). Mill and Estate Managers monitor the operational performance against Key Performance Indications and targets (costs, FFB yields, quality, productivity, pesticides usage, fertilizers usage, etc). There is evidence of monitoring of costs against budget to achieve specified targets. Performances are discussed in the monthly meetings held at the PMU and issues and actions needed are recorded for follow up in the next monthly meeting. The records of these meetings were available and

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verified during the audit. Monthly, quarterly, half-yearly and yearly reports are submitted to the HQ. 3.1.2 An annual replanting Replanting programme projected for 5 years (FY 2013/2014 to FY Complied programme projected for 2018/2019) for Jabor estate in this PMU. Evidence of replanting a minimum of five years programme planned, reviewed & on-going implementation carried out. (but longer where necessary to reflect the management of fragile soils, see Criterion 4.3), with yearly review, shall be available. Minor Compliance

Principle 4: Use of appropriate best practices by growers and millers

Criteria 4.1 Operating procedures are appropriately documented, consistently implemented and monitored. Indicators Findings and Objective Evidence Compliance 4.1.1 Standard Operating POM has documented SOPs for the following : Complied Procedures (SOPs) for 1. Palm Oil Mill Operation from reception of FFB until the delivery of estates and mills shall be processed oil and POME management. documented. 2. Laboratory Operation Manual Major Compliance 3. Quality, Environmental and Occupational Health & Safety Manual and Procedures of Palm Oil Mill - The SOP for pollution prevention includes measuring and monitoring mill effluents and waste disposal / recycling. 4. Procedure for Safe Work and Management of Safety and Health for Workers - The SOP for safe working practices in the POM includes hazards identification, risk assessment and control measures. The hazards include noise, chemicals, heat, fire, fuel spillage, working at heights, working in enclosed space, hot work, lightning, electrocution, machinery, etc. Control measures include the use of PPE, fire drill training, first aid training, etc. and “permit to work system” for the mill. Records of ‘Permit to Work’ including gas entry and stand-by permits issued by NIOSH to the competent personnel at the POM was verified to be maintained and found to be in order. 5. SOP for Mill RSPO Supply Chain Certification System using the Identity Preserved (IP) module.

Jabor estate has the following SOPs: 1. Sustainable Oil Palm Estate Operation Manual - The manual describes operational procedure of nursery practices, land preparation, planting practices, ground cover maintenance, roads, immature stage, harvesting, collection of bunches, manuring, pesticide application, pests & diseases control. The SOP for pesticides specifies safe working practices and application of pesticides. It includes annual medical surveillance for pesticides operators. 2. SOP for riparian zone management with specified buffer zones.

Relevant Key Performance Indicators (KPIs) specified for quality, environment, safety and cost control. 4.1.2 A mechanism to There is a mechanism to check the implementation of the SOPs. Complied check consistent implementation of Records had been kept by the staff concerned for each operation to procedures shall be in monitor the procedure and progress of work and these records would be checked by the Assistant Manager and the Manager regularly. These place. Minor Compliance records had been verified to indicate satisfactory implementation during

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the visit. 4.1.3 Records of Records of monitoring and actions taken had been maintained for more Complied monitoring and any actions taken shall be than 12 months at the mill and estates. Overall, these records verified to maintained and available, be satisfactory. as appropriate. Daily Muster chits were available at estates. Minor Compliance During field visits at Jabor estate, daily spraying records show Glyphosate and Kenlon are used as weedicide spray.. 4.1.4 The mill shall record The mill sourced FFB from Outside Crop Producers (OCP) and records Complied the origins of all third- indicated the origin of FFB. These FFB are considered as non-certified party sourced Fresh Fruit FFB. Bunches (FFB). Major Compliance

Criteria 4.2 Practices maintain soil fertility at, or where possible improve soil fertility to, a level that ensures optimal and sustained yield. Indicators Findings and Objective Evidence Compliance 4.2.1 There shall be Annual fertilizer inputs had been monitored through fertilizer Complied evidence that good agriculture practices, as recommendations made by SDPSB Research Station. contained in Standard Recommendations had been viewed and verified. Operating Procedures GAP for minimization of soil erosion and maintenance of soil fertility is (SOPs), are followed to maintained via the frond stacking and fertilizer application as per the manage soil fertility to a recommendation provided by the Agronomist. level that ensures optimal and sustained yield, These had been verified through the records for fertilizer application and where possible. observation during field visit. Evidences provided were verified as Minor Compliance following good agricultural practices. Soil sampling and leaf sampling records provided guide for the fertilizer application and all recommendations had been properly followed at estate levels. Noted that proper herbicide spraying had also been done. 4.2.2 Records of fertiliser Records of fertilizer application had been verified to be in order. Complied inputs shall be maintained. Minor Compliance

4.2.3 There shall be Leaf sampling and analysis had been carried out annually and soil Complied evidence of periodic tissue and soil sampling sampling and analysis on a 5 year cycle to determine the nutrient levels. to monitor changes in Fertilizer recommendations by the Agronomist for identified estate blocks nutrient status. to sustain the long term soil fertility and nutrient efficiency. Minor Compliance Records of the sampling and analysis had been verified to be satisfactory. 4.2.4 A nutrient recycling POME and most of the EFB are recycled for the production of compost Complied strategy shall be in place, and may include use of as a supplementary fertilizer. The balance EFB is mulched in mature Empty Fruit Bunches fields of Jabor estate. There is no land application of POME. (EFB), Palm Oil Mill Effluent (POME), and palm residues. Minor Compliance Criteria 4.3 Practices minimise and control erosion and degradation of soils. Indicators Findings and Objective Evidence Compliance 4.3.1 Maps of any Based on the soil maps and field visit verification, there was no fragile Complied fragile/marginal soils shall soil or marginal soil existence on the estates. be available. Major Compliance 4.3.2 A management 1. Planting terraces constructed on land with slope within the specified Complied strategy shall be in place

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Report No.: R9282/12-4 Sime Darby Plantation Sdn Bhd Page 21 of 66 SOU 12 Jabor: Surveillance Assessment ASA-04 for plantings on slopes degree according to the company SOP. between 9 and 25 degrees unless specified 2. There was no soil erosion noted during visit. Fields were generally otherwise by the covered with crops and soft grasses. company’s SOP. 3. The PMU has a SOP (Best Management Practice) for erosion control Minor Compliance during replanting or any activities involving earth disturbances. Steps taken are soil stabilization, run-off control and sediment trapping to mitigate the disturbed earth entering water ways.

4.3.3 A road maintenance Estate roads were maintained in good and satisfactory condition. Road Complied programme shall be in place. maintenance programme verified to be established and implemented. Minor Compliance 4.3.4 Subsidence of peat It was confirmed during assessment on site that there is no peat soil on Not soils shall be minimised Applicable and monitored. A the estates. documented water and ground cover management programme shall be in place. Major Compliance

4.3.5 Drainability There was no peat soil on the estates as confirmed by auditor’s on-site Not assessments where Applicable necessary will be assessment conducted prior to replanting on peat to determine the long-term viability of the necessary drainage for oil palm growing. Minor Compliance

4.3.6 A management Based on the estate soil maps and visit to the estates, there were no Not strategy shall be in place Applicable for other fragile and other fragile and problematic soils noted. problem soils (e.g. podzols and acid sulphate soils). Minor Compliance

Criteria 4.4 Practices maintain the quality and availability of surface and ground water. Indicators Findings and Objective Evidence Compliance 4.4.1 An implemented 1. Documented water management plan verified to be in order both at Complied water management plan shall be in place. the mill and estates. The plan includes steps such as soil stabilization, Minor Compliance run off control and sediment trapping to mitigate the disturbed earth entering waterways. 2. Water samples were taken at monthly interval at the final discharge point at the mill effluent pond at upstream and downstream of waterways. Tests conducted for ph, BOD, COD total solid, suspended solids, oil and grease, ammonium, nitrogen and total nitrogen. Analysis results meet the Doe requirements. 3. Water supply for domestic consumption is from the mill water treatment plant. The mill ensures that tests are carried out on parameters to meet the Ministry of Health Specification for drinking water quality. 4. No construction of bunds/weirs, dams were noted during field visits. 5. Rainfall figures were recorded and verified to be in order. 4.4.2 Protection of water Riparian buffer zone of 20 m had been sighted on both sides of river with Complied courses and wetlands, appropriate signages. including maintaining and restoring appropriate

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4.4.3 Appropriate 1. The water at the final discharge point of the mill effluent pond was Complied treatment of mill effluent analysed at monthly intervals for pH, BOD, COD, total solids, suspended to required levels and solids,oil and grease. Ammonical nitrogen and Total Nitrogen analysis regular monitoring of results meet the DOE requirements. discharge quality, shall be in compliance with 2. BOD level had been in the range of 26 mg/l for the past 6 months national regulations (Oct 2014 to Mar 2015) and approved level by DOE is 100 mg/l. (Criteria 2.1 and 5.6). 3. Stack emission monitoring by CEMS is within 2.53% against the Minor Compliance Permissible Limit (PL) @ 40%. This was the latest report by CEMS (dated 17.5.2015).

4.4.4 Mill water use per Water usage in the mill from Jan to Apr 2015 ranged from 1.5 to 2.0 Complied tonne of Fresh Fruit m3/tonne FFB which is within the industrial norm of 1.5 m3/tonne FFB. Bunches (FFB) (see Criterion 5.6) shall be monitored. Minor Compliance

Criteria 4.5 Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate Integrated Pest Management techniques.

Indicators Findings and Objective Evidence Compliance 4.5.1 Implementation of 1. IPM Plan includes the planting of beneficial plants and control of Complied Integrated Pest Management (IPM) plans damage by rodents. shall be monitored. 2. Agronomist recommended 1 ha with one point planted (one point Major Compliance measuring 10 m length x 3 m x 3 m). Programme for planting of beneficial plants such as Turnera subulata, Cassia cobanensis, and Antigonon leptopus. 3. Beneficial plants are planted in field. New plantings will be done upon rainfall. Nursery is ready with beneficial plants. 4. Barn owl boxes were noticed in fields and occupancy rate record shows 82.89% with Tito alba. 4.5.2 Training of those IPM training conducted by for all those involved in IPM implementation, Complied involved in IPM implementation shall be including smallholders. Training records for staff and workers on IPM demonstrated. implementation were available and was verified on-site to be satisfactory Minor Compliance during field assessment. Criteria 4.6 Pesticides are used in ways that do not endanger health or the environment.

Indicators Findings and Objective Evidence Compliance 4.6.1 Justification of all 1. Written justification in Standard Operating Procedures of all Complied pesticides used shall be agrochemicals use had been reviewed and found acceptable. demonstrated. The use of 2. In mature fields, Glyphosate and Kenlon are used for circle spraying. selective products that are specific to the target pest, weed or disease and which have minimal effect on non-target species shall be used where available. Major Compliance

4.6.2 Records of Records of pesticides and their active ingredients used, LD50, area Complied

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Report No.: R9282/12-4 Sime Darby Plantation Sdn Bhd Page 23 of 66 SOU 12 Jabor: Surveillance Assessment ASA-04 pesticides use (including treated, amount of a.i. applied per ha, and number of applications had active ingredients used been maintained and kept for a minimum of 5 years. Verified that records and their LD50, area of monitoring were satisfactorily. treated, amount of active ingredients applied per ha and number of applications) shall be provided. Major Compliance

4.6.3 Any use of 1. It had been the policy of the estates to minimize the use of pesticides Complied pesticides shall be in accordance with IPM plan. minimised as part of a plan, and in accordance 2. The pesticide reduction program is monitored on usage per hectare with Integrated Pest basis. Overall, there has been a decline in pesticide usage per hectare Management (IPM) plans. on a year to year basis. There shall be no 3. No prophylactic use of pesticides had been carried out at the estates prophylactic use of for the period concerned. pesticides, except in specific situations identified in industry’s Best Practice. Major Compliance

4.6.4 Pesticides that are 1. Use of paraquat had ceased and in accordance with SDPSB’s Policy. categorised as World 2. First Aid Kits found to be available during pesticides spraying. Health Organisation Class 1A or 1B, or that are listed Circle spraying in Field 98B at Jabor estate was in progress at the Minor NC # by the Stockholm or Rotterdam Conventions, time of field audit. Sprayers were seen to be with the appropriate NR-01 and paraquat, are not PPE. However, there was no portable signage to warn that used, except in specific spraying activity is in progress in that area. situations identified in industry’s Best Practice. The use of such pesticides shall be minimised and eliminated as part of a plan, and shall only be used in exceptional circumstances. Pesticides selected for use are those officially registered under the Pesticides Act 1974 (Act 149) and the relevant provision (Section 53A); and in accordance with USECHH Regulations (2000). Minor Compliance

4.6.5 Pesticides shall only All pesticide operators (including the contractor’s workers) have attended Complied be handled, used or training on the safe handling and application of pesticides in compliance applied by persons who with Regulation 22 of the Pesticides Act 1974. have completed the necessary training and Appropriate safety and application equipment (safety boots, safety shall always be applied in helmets, rubber boots, cartridge masks, safety goggles, gloves, overalls) accordance with the have been provided and used by the pesticides operators. product label. Appropriate All precautions attached to the pesticides (MSDS) have been observed, safety and application equipment shall be applied and understood by the workers. provided and used. Programme and training records verified to be satisfactory. All precautions attached The training include spraying technique, precautions and symptoms of to the products shall be symptoms of toxic reactions such as skin disorders, rashes, mouth and properly observed, throat pain, breathing difficulties or nail problems. applied, and understood by workers (see Criterion The PMU has adequate facilities for mixing of pesticides and cleaning up 4.7). after work. There are suitable storage areas for PPE.

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Major Compliance 4.6.6 Storage of all Storage of pesticides found to be kept under lock and key and its use in Complied pesticides shall be accordance with the Occupational Safety and Health Laws and according to recognised Regulation 9 of the Pesticides Act 1974. best practices. All Emergency shower and eye wash are available near the pesticides store pesticide containers shall be properly disposed of in case of accidents. and not used for other Material Safety Data Sheets (MSDS) are available in the store. The purposes (see Criterion MSDS are in English and Bahasa Malaysia (understood by the workers). 5.3). Pesticides shall be Used chemical containers were either reused as containers for spraying stored in accordance to solution. For disposal as scheduled waste, empty pesticide containers the Occupational Safety and are triple rinsed and pierced at the bottom. Health Act 1994 (Act 514) and Regulations and Orders, Pesticides Act 1974 (Act 149) and Regulations. Major Compliance

4.6.7 Application of Pesticides had been applied using the Best Management Practices that Complied pesticides shall be by minimize risk and impacts. The pesticide operators found to understand proven methods that the use of the right nozzle, spray drift, spray quality and run-off. minimise risk and Programme and training records verified to be satisfactory. impacts. Minor Compliance

4.6.8 Pesticides shall be It is the policy of the company not to carry out aerial application of Complied applied aerially only where there is pesticides. This policy has been followed by the PMU. documented justification. Communities shall be informed of impending aerial pesticide applications with all relevant information within reasonable time prior to application. Major Compliance

4.6.9 Evidence of The Annual Training Plan includes training on pesticides handling. All Complied continual training to new pesticides operators were trained before being assigned to work enhance knowledge and with pesticides. In addition, based upon training needs, the existing skills of employees and pesticide operators (including the contractor’s workers) attended associated smallholders on pesticide handling continual training to enhance their knowledge and skills on pesticides shall be demonstrated or handling. made available. (see Information and safety precautions on the pesticides displayed on the Criterion 4.8). notice board and next to the pesticides in the store. Minor Compliance

4.6.10 Proper disposal of Scheduled waste had been disposed of through licensed contractor Complied waste material, according to procedures that are approved by DOE. Records of scheduled waste verified to be in order. fully understood by workers and managers shall be demonstrated (see Criterion 5.3). Minor Compliance 4.6.11 Specific annual 1. Annual medical surveillance for all pesticide operators had been Complied medical surveillance for pesticide operators, and implemented. Previous medical surveillance was carried out in 16 May documented action to 2014. The next surveillance is due on 22 May 2015. treat related health 2. It was verified that the CHRA recommendations has been conditions, shall be satisfactorily followed. demonstrated. Major Compliance 3. Medical surveillance reports of individual sprayers were checked and no abnormalities reported by the Medical doctor. The medical reports

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showed that there was no case of low blood cholinesterase levels. Any worker with such health condition is unfit for work with pesticides. No such cases in the PMU as at the date of assessment. 4. Pesticides operators were interviewed during field visits and feedback received that they do not have any symptoms of toxic reactions such as skin disorders, rashes, mouth and throat pain, breathing difficulties or nail problems. 5. Besides the annual medical surveillance, clinical records were also monitored. 4.6.12 No work with Verified from records, field inspections and interviews that no pregnant Complied pesticides shall be undertaken by pregnant or breast-feeding woman had been offered work as pesticide operator. or breast-feeding women. Major Compliance Criteria 4.7 An occupational health and safety plan is documented, effectively communicated and implemented.

Indicators Findings and Objective Evidence Compliance The occupational health Occupational Safety and Health (OSH) plan in compliance with OSH Act Complied and safety plan shall cover the following: and Factory Machinery Act was documented and implemented. OSH Policy found to be clearly displayed at POM and in the estates 4.7.1 An occupational office. Adequate posters, regulations, newsletters were prominently health and safety policy displayed on notice boards. Interviewed workers demonstrated shall be in place. An awareness towards occupational safety and health. occupational health and The Safety & Health Officer is in charge of safety and health planning, safety plan covering all activities shall be operation & coordination. Mill/Assistant Mill Managers and Estate documented and Managers / Assistant Estate Managers are also directly involved. implemented, and its Records on training had been verified on the Palm Oil Mill and the effectiveness monitored. Estates. Major Compliance Analysis on the understanding of training by the workers on the PMU had been verified.

4.7.2 All operations where 1. Risk assessment carried out on operations where health and safety is Complied health and safety is an issue shall be risk an issue in order to determine the significant hazards. Significant assessed, and hazards determined and documented include noise exposure, procedures and actions pesticides/chemicals exposure, accident, fire. Procedures and actions shall be documented and implemented to mitigate the hazards. implemented to address the identified issues. All 2. There was an assessment on noise level in POM on the 9 May 2015. precautions attached to The POM is awaiting for the consultant’s report. products shall be properly Mill management is continuing the reduction of noise level by more observed and applied to frequent lubrication of machinery, reducing the exposure of time to high the workers. noise and mandatory use of ear plugs and ear mufflers. Major Compliance 3. Annual audiometric test conducted for all mill staff and workers. There was no case of hearing impairment as seen in the audiometric reports. Baseline audiogram and occupational and medical history records of workers and maintained.

4. Workers at work exposed to high noise levels were interviewed during audit. They are aware of the danger of hearing loss due to prolonged exposure to high noise.

5. “Permit to work” system applied at the POM. Staff and workers have been trained and certified by NIOSH for gas entrant and stand-by involving work in confined space. 6. Appropriate PPE (safety boots, safety helmets, rubber boots, cartridge masks, safety goggles, gloves, overalls, ear plugs, ear mufflers) verified to be provided to and being used by the workers.

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Associated training provided to address safety and health issues.

7. Warning signs sighted at high noise areas and ear plugs and ear mufflers to be worn. There are also warning signs to use other PPE such as helmet and safety boots. An audit for determining compliance with the minimum standards had been conducted on all types of PPE used. 8. Adequate fire extinguishers and hose reels found to be located at strategic locations, operational and maintained in good conditions. Location map of fire extinguishers is available. 9. First Aid equipment was available at POM, estates and at worksites. Samples of First Aid box was checked and contents found to be complete and in usable order during field visit. Training for workers in First Aid was carried out in the mill and estates and records maintained. 10. The POM and estates have established their accident reporting KPI and incident monitoring implemented. Yearly reporting of JKKP8 regulations was submitted to JKKP on time, i.e. in January of each year. The Safety & Health Officer maintains records on the rate of accidents to workmen, trends in rate of accidents, fatalities and non-fatalities captured to prevent mishaps.

4.7.3 All workers involved Training programme planned for year 2015 includes training for all Complied in the operation shall be adequately trained in safe categories of workers. working practices (see Appropriate trainings on safe working practices are planned for: Criterion 4.8). Adequate - workers exposed to machinery and high noise levels, and appropriate protective equipment shall be - workers working in confined space, available to all workers at - harvesters the place of work to cover all potentially hazardous - pesticides operators operations, such as - manurers pesticide application, machine operations, and The training programme included the various types of training such as land preparation, fire fighting and fire drill, exposure to high noise levels and control harvesting and, if it is measures for protection of hearing and audiometric tests, understanding used, burning. MSDS/CSDS and first aid training. Major Compliance The above trainings were conducted for year 2014 and records were available. Evaluation carried out on each of the trainings to determine its effectiveness.

4.7.4 The responsible The responsible person (usually the Mandore or Headman) had been Complied person/persons shall be identified. identified. There shall be Records of regular meetings between the responsible person and records of regular workers to discuss about health and safety had been verified to be meetings between the responsible person/s and satisfactory. workers. Concerns of all parties about health, safety and welfare shall be discussed at these meetings, and any issues raised shall be recorded. Major Compliance

4.7.5 Accident and Accident and emergency procedures had been written in English and Complied emergency procedures shall exist and instructions Bahasa Malaysia and briefed to staff, workers, contractors and visitors. shall be clearly Workers trained in First Aid were present in the mill and field operations. understood by all workers. First Aid Kits were available at worksites. Records on all accidents had Accident procedures shall been verified to be maintained satisfactorily. be available in the appropriate language of Quarterly review on accident cases had been carried out during quarterly

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4.7.6 All workers shall be Proper medical care had been provided to all workers. Foreign workers Complied provided with medical care, and covered by at the PMU were covered by the Foreign Workers Compensation accident insurance. Scheme as required by the laws. The insurance is underwritten by RHB Minor Compliance Insurance Bhd for all workers in Jabor POM and Estate. 4.7.7 Occupational Records on Lost Time Accident (LTA) metrics had been verified to be Complied injuries shall be recorded using Lost Time Accident satisfactory. (LTA) metrics. Minor Compliance

Criteria 4.8 All staff, workers, smallholders and contract workers are appropriately trained.

Indicators Findings and Objective Evidence Compliance 4.8.1 A formal training A formal training programme on all aspects of RSPO Principles and Complied programme shall be in place that covers all Criteria has been established and implemented. aspects of the RSPO Training for various categories of operators, including all field and mill Principles and Criteria, staff, with regards to their duties and training needs had been reviewed and that includes regular and found acceptable. assessments of training needs and documentation of the programme. Major Compliance

4.8.2 Records of training Records of training for each employee had been verified to be Complied for each employee shall be maintained. satisfactory in the Mill and estate. Minor Compliance

Principle 5: Environmental responsibility and conservation of natural resources and biodiversity Criterion 5.1 Aspects of plantation and mill management, including replanting, that have environmental impacts are identified, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continual improvement. Indicators Findings and Objective Evidence Compliance 5.1.1 An environmental Environmental aspect and impact assessment (EAIA) had been Complied impact assessment (EIA) conducted for the POM and estates and significant aspects identified. shall be documented. The EAIA for the mill and estates were reviewed on 10 Apr 2014. The Major Compliance review process had included stakeholders’ consultation with regards to environmental aspects, impacts, and pollution control, and ERT, HCV and land usage issues.

5.1.2 Where the Management plans / action plans for mitigation of impacts, timeframe for Complied identification of impacts action and responsible persons were identified and had been

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Report No.: R9282/12-4 Sime Darby Plantation Sdn Bhd Page 28 of 66 SOU 12 Jabor: Surveillance Assessment ASA-04 requires changes in implemented and monitored for FY Jul 2014-Jun 2015. current practices, in order to mitigate negative The Mill and Estate Managers have been identified as persons effects, a timetable for responsible for their respective management plans. change shall be There were no major changes to the identified impacts since the developed and establishment of the above documents. implemented within a comprehensive management plan. The management plan shall identify the responsible person/persons. Minor Compliance

5.1.3 This plan shall The Management Plan / Action Plan incorporated the monitoring of the Complied incorporate a monitoring effectiveness of the mitigation measures and were reviewed on an protocol, adaptive to annual basis. operational changes, which shall be The plans include mitigation measures for pollution prevention, disposal implemented to monitor of schedule waste, domestic waste and clinical waste, waste recycling; the effectiveness of the storage and application of pesticides, planting of beneficial plants, mitigation measures. The maintenance of riparian buffer zones and conservation activities, plan shall be reviewed as training, awareness and briefings related to environmental awareness a minimum every two activities. years to reflect the results of monitoring and where there are operational changes that may have positive and negative environmental impacts. Minor Compliance

Criterion 5.2 The status of rare, threatened or endangered species and other High Conservation Value habitats, if any, that exist in the plantation or that could be affected by plantation or mill management, shall be identified and operations managed to best ensure that they are maintained and/or enhanced.

Indicators Findings and Objective Evidence Compliance 5.2.1 Information shall be The HCV Identification and Assessment was originally conducted in Apr Complied collated in a High 2009 and documented as the Biodiversity Baseline Assessment Report. Conservation Value The HCV Re-Assessment for SOU 12 will be conducted by the PSQM (HCV) assessment that Department of SDPSB before the re-certification assessment in 2016. includes both the planted area itself and relevant It was verified that the Management Action Plans for HCV and wider landscape-level Conservation areas were implemented and monitored at the estate. considerations (such as The HCV Identification and Assessment was conducted based on the wildlife corridors). “High Conservation Value Forest (HCVF) Toolkit for Malaysia: A national Major Compliance guide for identifying, managing and monitoring High Conservation Value Forest, WWF – Malaysia, 2009”, The report had covered the overall landscape of the PMU region, has considered the potential HCV areas which are bordering with any forest reserve and had incorporated feedbacks provided by villagers and various governmental agencies such as Department of Forestry, Wildlife Department and Department of Environment. The PMU estate is surrounded by other plantation estates with certain areas bordering the Galing Forest Reserve. Jabor Estate consisted of 20% low lying, 36% flat and 44% hilly areas. The HCV Assessment reported a small HCV area inside the PMU comprising of buffer zones near forest reserve, water catchment areas and religious sites.

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The areas bordering the forest reserve and stretches of riparian buffer zones along the tributaries of Jabor river that pass through the Jabor Estate have been identified as conservation/environmentally sensitive areas. 5.2.2 Where rare, Latest re-assessment of HCV by SDPSB Sustainability Department Complied threatened or endangered indicates only HCV 4 & 6 areas within the PMU and no presence of RTE (RTE) species, or HCVs, species. are present or are affected by plantation or Management Plan / Action Plan documented in all the estates with mill operations, specific actions to be taken by the Estate Manager / Assistant Manager appropriate measures that for the identified HCV areas. The plan includes the following: are expected to maintain (a) Monthly upkeep and inspection of the religious worship sites and/or enhance them shall be implemented (mosque and hindu temple). through an action plan. (b) Boundary with forest reserves separated by roads. Signages Major Compliance erected to prohibit hunting or collecting activities. (c) Maintenance and monitoring of conservation/buffer zones and ponds. Placement of appropriate signages to prohibit fishing, swimming and water polluting activities. (d) Regular patrols to monitor and record sightings of wildlife: e.g. monitor lizards, snakes, monkeys, egret and kingfisher. Noted that wildlife sighted are species which are not under the RTE list. (e) Water sampling analysis of stream/water catchment areas and final discharge of effluent pond. (f) No planting at steep slopes > 25oC. (g) Legume cover crop and IPM. The conservation/environmentally sensitive areas were inspected on site and found to be maintained satisfactory.

5.2.3 There shall be a There is evidence to continuously prevent and discourage any illegal or Complied programme to regularly inappropriate hunting, fishing or collecting activities via the signages educate the workforce erected and regular patrols to monitor any prohibited activities. about the status of these RTE species, and The training programme to regularly educate the workforce and appropriate disciplinary community about the status of RTE species was established with measures shall be ongoing consultation with the Wildlife Department. The workforce and instigated in accordance local communities have been made aware to report the sighting of with company rules and various types of wildlife. national law if any individual working for the company is found to capture, harm, collect or kill these species. Minor Compliance 5.2.4 Where an action Management plans were established and monitoring outcomes were Complied plan has been created reviewed by the estate managers. Ongoing monitoring of the there shall be ongoing monitoring: management plan on the status of RTE species and HCV was noted. • The status of HCV and NCR 1 of 2 (ASA-03) was reviewed and action taken verified to be RTE species that are effective. affected by plantation or mill operations shall be documented and reported; • Outcomes of monitoring shall be fed back into the action plan. Minor Compliance

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5.2.5 Where HCV set- It was verified that there has been no instance of HCV set-aside that Complied asides with existing rights conflicts with the rights of local communities at this PMU. Thus of local communities have been identified, there shall negotiated agreement of such nature is not applicable. be evidence of a negotiated agreement that optimally safeguards both the HCVs and these rights. Minor Compliance

Criterion 5.3 Waste is reduced, recycled, re-used and disposed of in an environmentally and socially responsible manner. Indicators Findings and Objective Evidence Compliance 5.3.1 All waste products Following waste products and sources of pollution have been identified Complied and sources of pollution and documented at the PMU: scheduled waste, clinical waste, domestic shall be identified and waste, recyclable wastes (metal, plastic, paper, glass) and mill wastes documented. (EFB, fibre, boiler ash, POME). Major Compliance Scheduled Waste identified included spent lubricant oil (SW 305), spent hydraulic oil (SW 306), used chemical containers/drums (SW 409), used filters (SW 410) and used batteries (SW 102). Clinical waste identified included cotton, glove, vial, ampoule, syringe needle (SW 404).

5.3.2 All chemicals and SOP Section VII “Handling of Schedule Waste” documented for meeting Complied their containers shall be the requirements of EQ (Scheduled Waste) Regulation 2005: disposed of responsibly. - The scheduled waste storage area had restricted access to authorized Major Compliance personnel only. Chemicals and empty containers were appropriately segregated and stored. Fertiliser bags are recycled. - All scheduled wastes have been disposed by a licensed contractor within 180 days as stated. - The scheduled waste disposal was done with proper documentation submitted by the DOE licensed SW contractor, which is adequately filed and available at site. E-consignment notes completed and retained. - MSDS/CSDS instructions were displayed and found to be followed.

5.3.3 A waste The mill and estates have documented and implemented waste Complied management and management and disposal plans to avoid or reduce pollution. These disposal plan to avoid or operational plans covered the waste products and sources of pollution reduce pollution shall be identified in the mill and estates. documented and implemented. Segregation of wastes, i.e. scheduled wastes and general wastes was Minor Compliance verified. The mill and estates have a proper Scheduled Waste Store for storing scheduled waste until time of disposal by DOE authorized waste disposal contractor. Proper storage areas were identified for the storage of the recyclable wastes at the mill and estates. Solid waste management and disposal by means of landfill. The designated landfill areas at the estates were verified to be at least 50 m away from any streams/water sources, to minimize the risk of contamination of water sources. Clinical waste disposed of by authorized contractor (Medivest Sdn Bhd). Recycling bins of three different colour codes for specific recyclable wastes were available in the mill and estates and were used for solid waste segregation and recycling. Sewage from the staff and workers housing goes to the septic tanks and disposed when necessary.

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Recycling of crop residues / biomass and mill wastes (POME, EFB, fibre, boiler ash) had been implemented. The composting plant recycles POME and EFB from the mill by mixing with fertilizer to produce compost that is used for land application in the estate. Appropriate secondary containment for the diesel skid tanks, chemical and scheduled waste storage areas was verified to be maintained. Stack emissions and boiler ashes were monitored and controlled at the PMU. It was verified on-site that the records and related documentation has been satisfactorily maintained at the mill and respective estates. NCR 2 of 2 (ASA-03) was reviewed and action taken verified to be effective. 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 three boilers operational Complied efficiency of the use of records were monitored monthly and included monitoring of the fossil fuels and to renewable energy usage. optimise renewable Monthly records of energy consumption of non-renewable and energy shall be in place and monitored. renewable fuel per metric tonne of palm product were available. Minor Compliance For the period Jul 2014 to Mar 2015, monthly diesel usage at the mill noted to be an average of 0.57 litres/MT FFB and 3.48 litres/MT CPO. Monthly renewable energy (fibre and shell) usage is an average of 0.42 MT fibre & shell/MT CPO. At the estate, diesel consumption was also monitored on a monthly basis and noted to be an average of 2.78 litres per metric tonne FFB. Criterion 5.5 Use of fire for preparing land or replanting is avoided, except in specific situations as identified in the ASEAN guidelines or other regional best practice.

Indicators Findings and Objective Evidence Compliance 5.5.1 There shall be no Zero open burning policy in accordance with SOP Section B2 Complied land preparation by “Felling/Land Clearing & Land Preparation” dated 01/11/2008. The PMU burning, other than in management is strictly complying with the Malaysian environmental law specific situations as – EQA and Regulations 1974. identified in the ‘Guidelines for the Field inspections made showed no physical evidence of open burning. Implementation of the ASEAN Policy on Zero Burning’ 2003. Major Compliance

5.5.2 Where fire has been The PMU has adhered to the ‘zero burning ‘policy for replanting at the Complied used for preparing land estates. Previous crop felled were appropriately chipped/shredded and for replanting, there shall disposed back to the soil according to the practices required. be evidence of prior approval of the controlled Also, there was no evidence of any burning of domestic waste at the burning as specified in housing line sites and at the landfills of the estates during on site field ‘Guidelines for the assessment. Landfills are located far away from the villages and water Implementation of the sources. ASEAN Policy on Zero Burning’ 2003. Minor Compliance

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Criterion 5.6 Plans to reduce pollution and emissions, including greenhouse gases, are developed, implemented and monitored.

Indicators Findings and Objective Evidence Compliance 5.6.1 An assessment of The PMU had carried out an environmental aspect and impact Complied all polluting activities shall assessment (EAIA) and identified the potential polluting activities at the be conducted, including POM and estates. gaseous emissions; particulate/soot emissions The PMU had reviewed the environmental impact assessment on and effluent (see Criterion potential pollution to water, gaseous emissions to air and contamination 4.4). on land on 10 Apr 2015. Major Compliance POME is sent to the composting plant adjacent to the mill and processed into compost by mixing with EFB and fertilizer. Mill gas emissions as monitored online by DOE using the Continuous Emissions Monitoring System (CEMS) verified to be within permissible limits of DOE. Average opacity and duration exceeding permissible limits found to comply with DOE regulation. No violations and/or compounds have been received from DOE as to date. Monitoring of noise levels at the mill has been carried out. Noise levels at the boiler station and the sterilization unit were identified to be above 85 dB. Ear mufflers have been issued and seen to be worn by workers at those locations. As documented in the HIRAC table, PPE use and audiometric examination used as control measures to prevent hearing loss of mill workers. 5.6.2 Significant pollutants Identification of significant pollutants and greenhouse gas (GHG) Complied and greenhouse gas emissions has been done. e.g. POME, diesel / fuel and fertilizer. Their (GHG) emissions shall be usage have been recorded and documented at the PMU. GHG identified, and plans to emissions have been monitored and compiled for year FY 2014/2015 by reduce or minimise them implemented. the SDPSB Sustainability Department from HQ. The PMU intends to review the plans to further reduce or minimize their GHG emissions Major Compliance

5.6.3 A monitoring system The Sustainability Department of SDPSB has communicated (via email) Complied shall be in place, with to RSPO concerning the requirement for submission of their GHG regular reporting on emission report (using PalmGHG or an equivalent) to RSPO Secretariat progress for these for review by the ERWG. significant pollutants and emissions from estate and Monitoring and reporting of the significant pollutants to water, gaseous mill operations, using emissions to air and contamination on land are in place. appropriate tools. Tools and systems used include the DOE online CEMS monitoring for Minor Compliance air emissions, water quality at discharge points as per DOE regulations and Scheduled Waste disposal were adhering to DOE requirements. It was verified that the POME is treated using aerobic and anaerobic ponds. Water samples were taken every month at the final discharge point of the palm oil mill effluent pond. Water samples also taken at half yearly intervals at upstream and downstream of waterways. The water samples were tested and test reports analyzed to ensure compliance to DOE requirements. Results verified to have met the permissible regulatory limits for pH, BOD, COD, Total Solids, Suspended Solids, Oil & Grease, Ammoniacal Nitrogen and Total Nitrogen. Over the period Jul 2014 to Mar 2015, the BOD levels ranged from 15 to 63 ppm. The DOE requirement is < 100 ppm.

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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 The Social Impact Assessment (SIA) dated 12 Mar 2009 and Social Complied assessment (SIA) Impact Management Action Plan dated 5 Oct. 2014 for FY 2014/2015, including records of were verified during the audit. Next social impact re-assessment meetings shall be activities is planned to be conducted in Nov 2015. documented. Major Compliance

6.1.2 There shall be Participation of affected parties was evident from a combined external Complied evidence that the stakeholders’ consultation held by the mill and estate on 9 Feb 2015. assessment has been Stakeholders involved include suppliers, school teachers, local done with the participation communities and contractors. For internal stakeholders’ consultation, of affected parties. the mill and estate conducted separate OSH, NUPW and Gender Major Compliance Committee meetings to obtain feedback. Judging from the issues raised and from interviews of stakeholders during the assessment, attendees of these meetings were seemed to be able to freely express their view during the identification of findings, impacts, mitigation plans.

6.1.3 Plans for avoidance Time bound plans for avoidance or mitigation of negative and promotion Complied or mitigation of negative of the positive impacts based on NUPW inputs were developed by both impacts and promotion of Jabor POM and Estate. The mitigation plan is ongoing and monitored the positive ones, and regularly at stated intervals. The plan includes issues to be monitored, monitoring of impacts identified, shall be proposed mitigation, responsible persons, and expected date of developed in consultation completion. with the affected parties, documented and timetabled, including responsibilities for implementation. Major Compliance 6.1.4 The plans shall be Both Jabor POM and Estate have documented social impact reviewed as a minimum assessments (SIA) and social action plan which were reviewed annually. once every two years and Implementation on the existing programs is ongoing and monitored as updated as necessary, in evidenced during assessment. those cases where the review has concluded that For the POM and Jabor Estate, action plans for social issues have changes should be made been reviewed, followed-up and monitored accordingly. However, Minor NC # to current practices. currently not all social issues arising from internal and external JMD-01 There shall be evidence stakeholders were included in the action plans. For example, that the review includes social issues arising from OSH meetings, external stakeholder the participation of consultation and gender committee meetings were not included. affected parties.

Minor Compliance 6.1.5 Particular attention Not applicable as there was no smallholder scheme in the PMU.. Not shall be paid to the Applicable impacts of smallholder schemes (where the plantation includes such a scheme). Minor Compliance

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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 Policies and procedures are available for internal and Complied communication external communication. procedures shall be Managers and their assistants are the nominated persons responsible documented. for communication with the stakeholders. The PMU has a list of Major Compliance stakeholders including local authorities, government departments, NGOs, service providers, suppliers and contractors. Interviews with representatives of Gender Committee, foreign workers, internal workers, etc. revealed open and transparent communication. These interviews confirmed the effectiveness of the PMU consultation and communication processes with the internal and external stakeholders. 6.2.2 A management Appointment records sighted show evidence the existence of a Complied official responsible for management official for these issues. Interviews with mill and estate these issues shall be managers verified the understanding of their roles and responsibilities. nominated. Assistant Mill Manager, Sohlan A/L Muthuvelu was nominated as Social Minor Compliance Liaison based on letter issued on 2 Jan 2015 signed by the Mill Manager, Shahrir Abdullah Sadali. The Jabor Assistant Estate Manager, Mohamad Helmi Malek was nominated as the Social Liaison based on letter issued 1 Sep. 2014 signed by the Estate Manager, Azri Lahman. 6.2.3 A list of List of stakeholders are sighted in “Communication” [QSHE08/5.5.3] file. Complied stakeholders, records of Latest list is for FY 2013/2014. all communication, including confirmation of Noted that there are open and transparent methods for communication receipt and that effort are and consultation which has taken into consideration the local conditions made to ensure including migrant workers and job opportunities for local people. Verified understanding by affected that consultations with various stakeholders had been held and recorded parties, and records of in the minutes of meeting that include actions taken in response to input actions taken in response from stakeholders. to input from stakeholders, shall be maintained. 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 The PMU has an established and documented system for dealing with Complied all affected parties, shall complaints and grievances and it was well implemented. A mutually resolve disputes in an agreed and documented system in the form of Grievances Book. effective, timely and appropriate manner, Procedures and flow chart has been prepared to deal with complaints, ensuring anonymity of dispute and resolution. Internal and External Log Books in both Jabor complainants and POM and Estate are still active in recording complaints/requests made whistleblowers, where by internal workers. requested. Interviews with staff and workers and their representatives revealed Major Compliance knowledge and understanding of the dispute and resolution mechanism. The mechanism provides for open and consensual agreements with relevant affected parties. 6.3.2 Documentation of Complaints and grievances are handled by respective Estate Assistant Complied

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Report No.: R9282/12-4 Sime Darby Plantation Sdn Bhd Page 35 of 66 SOU 12 Jabor: Surveillance Assessment ASA-04 both the process by which Managers or through OSH meetings which are conducted every 3 a dispute was resolved months. A record book is used to forward a complaint or make a and the outcome shall be request for maintenance. available. Mechanisms are appropriately established and implemented. Records Minor Compliance of meeting and any resolutions or outcomes are maintained through Minutes or in Complaints Log. 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 The PMU has a documented procedure for identifying legal and Complied identifying legal, customary rights and procedure for identifying people entitled to customary or user rights, compensation (Sime Darby Plantation, Sustainable Plantation and a procedure for Management System, Appendix 3, Flowchart and Procedure on identifying people entitled to compensation, shall be Handling Land Dispute, dated 1 Nov. 2008). in place. Sime Darby “Social Policy” dated Apr.2011 signed by Frank Anthony Major Compliance Dass stated clearly that the company will ensure any negotiations concerning compensation for loss of legal or customary rights are dealt with through the documented system. There are borders which adjacent to villages and smallholders in the PMU. However, there was no case requiring any negotiation or compensation pertaining to this criterion. There have been no changes in this status as at the period of verification on site. 6.4.2 A procedure for There is a procedure for calculating and distributing compensation. To Complied calculating and date, there has been no dispute by any parties relating to legal, distributing fair customary or user rights at the PMU. compensation (monetary or otherwise) shall be established and implemented, monitored and evaluated in a participatory way, and corrective actions taken as a result of this evaluation. This procedure shall take into account: gender differences in the power to claim rights, ownership and access to land; differences of transmigrants and long- established communities; and differences in ethnic groups’ proof of legal versus communal ownership of land. Minor Compliance 6.4.3 The process and So far, there has been no dispute by any parties relating to legal, Complied outcome of any customary or user rights at the PMU. Therefore the process and negotiated agreements outcome of compensation could not be observed. and compensation claims shall be documented, with evidence of the participation of affected parties, and made publicly available. Major Compliance

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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 In “Kontrak Pekerjaan Tenaga Kerja Asing – Semenanjung Malaysia Complied pay and conditions shall [April 2013]” all necessary employment terms and conditions including be available. job/assignment, minimum wage per day, overtime calculations, Major Compliance allowance, working hours, deductions, sick leave, holiday entitlement, reasons for dismissal, period of notice, etc. are stated A review of some field workers’ pay slips showed that the calculation of pay is clearly itemised, for example:  Normal day field work wage [Daily Rated or Piece Rated]  Normal working day overtime  Working rest day  Overtime for working rest day  Working public holiday  Overtime for working public holiday  Out-turn incentives [December pay slips only]  Conversion of annual leave into annual payment renewal [December pay slips only] Payments are made latest by the 7th of each month directly transferred into employee banking account.The payment slip was easy to understand. Foreign workers are legally employed directly by PMU and work permits were available and verified to be satisfactory. The PMU has implemented the Minimum Wage Order 2012 consistent with payment slips sighted during the audit. 6.5.2 Labour laws, union Documented employment contract verified for migrant workers had Complied agreements or direct covered all issue such as working hours, deductions, overtime, sickness, contracts of employment holiday entitlement, maternity leave, and reasons for dismissal, period of detailing payments and notice made available in Bahasa Malaysia which is understood by the conditions of employment (e.g. working hours, workers (local and foreign workers). deductions, overtime, Through the payment documents available it was evident that eligible sickness, holiday annual leaves in 2014 were paid in Dec 2014. Foreign workers at the entitlement, maternity PMU were also covered by the Foreign Workers Compensation Scheme leave, reasons for as required by the laws. The insurance is underwritten by RHB dismissal, period of notice, etc.) shall be Insurance Bhd for all workers in Jabor POM and Estate. 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 The estate management was noted to have complied with Workers’ shall provide adequate Minimum Standard of Housing and Amenities Act 1990 (Act 446). housing, water supplies, medical, educational and Site visits to workers’ homes and interviews with their dependents revealed their general satisfaction with their housing conditions and welfare amenities to national standards or amenities. above, where no such public facilities are available or accessible. Housing, electricity and water supply

Minor Compliance Workers are given a small patch of land to grow vegetables/fruit trees to reduce the cost of living. The workers staying in the estate are provided with free 24 hour electricity supply. Clean water supply comes from treated pond water which is supplied to the workers daily.

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At the workers’ quarters in Jabor Estate, it was found that the management had removed a majority of the fire extinguishers that have expired or non-functional. However, the number of functional Minor NC # extinguishers remaining is now not sufficient in relation to the JMS-02 number of housing units.

Schools No foreign workers’ children found in the PMU during the assessment. Primary and secondary government schools are available for local workers’ children in the vicinity of the PMU.

Sundry shops Currently there is one sundry shop and one eating place located within the estate for staff and workers to get their sundries nearby. From interviews with the workers in PMU, it was found that most household sundries, including frozen foodstuffs were available on sale. Fresh food, such as fish, chicken, vegetable and meat are brought in by fresh food suppliers into the estates in food trucks. The PMU is in the midst of building another sundry shop to prevent price monopoly by the existing shop.

Crèche ( Rumah Asuhan Kanak-kanak) There is a crèche in the linesite that provides free baby-sitting to local workers’ children. Free infant formula milk is also provided to those children who are not weaned yet. Visits to the crèche showed that it is in reasonably clean condition. The Medical Assistant informed that there were currently only five children aged below four years old at the crèche. The PMU current policy is not to allow older children to be registered.

Medical clinics There is a clinic in located in the linesite which is manned by a Medical Assistant [MA]. Visiting Medical Officer [VMO] comes once a week to monitor the services provided and to review the referred cases. Basic medical treatment of minor ailment and first aids such as toilet and suturing (T&S) of small laceration wounds are provided. Sharp bins are available in all clinics and content of the bins are disposed through proper channel, i.e. licensed collector. 6.5.4 Growers and millers Food for the workers provided through the sole sundry shop in the Complied shall make demonstrable linesite verified to be adequate and affordable. There is also one eating efforts to monitor and place located in the linesite. At the crèches, infant formula milk had improve workers’ access been provided for free. The PMU also allows access to the food trucks to adequate, sufficient and affordable food. supplying fresh food to the workers quarters. 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 The published statements of Social Policy” Apr. 2011 signed by Frank Complied statement in local languages recognising Anthony Dass stated clearly that the company shall respect the rights of freedom of association all personnel to form and join trade unions of their choice. This clearly shall be available. recognizes the employee’s freedom of association. It was found to be

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Major Compliance available and widely displayed in all notice boards of the PMU. NUPW is a platform through which the members negotiate collectively with the management of the PMU. 6.6.2 Minutes of meetings Workers’ associations are available in both Jabor POM and Estate. At Complied with main trade unions or the Jabor Estate the latest NUPW meeting with the estate management workers representatives was conducted on 8 Sep 2014 and the meeting minutes are filed shall be documented. properly. Issues such as lack of public transport for the workers to go Minor Compliance out to the town was discussed at the meeting. Criterion 6.7 Children are not employed or exploited. Indicators Findings and Objective Evidence Compliance 6.7.1 There shall be The PMU has a policy of not employing child labour as stated in the Complied documentary evidence “Social Policy” dated Apr 2011 signed by Frank Anthony Dass that the that minimum age company does not condone forced labour or child labour in accordance requirements are met. with Employment Act 265. This policy is displayed at strategic public Major Compliance places. The birth date in the Identification Card and birth certificate of a new employee is used as the verification for age. The implementation was verified through checks on workers file. Interviews with workers in the Jabor Estates and at the POM confirmed implementation of the stated policy. 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 The PMU has a publicly displayed documented policy on equal Complied equal opportunities policy opportunities as stated in the Social Policy dated Apr 2011 signed by including identification of Frank Anthony Dass stated clearly that all employees should be treated relevant/affected groups fairly in terms of recruitment, progression, terms and conditions, etc. in the local environment shall be documented. Major Compliance 6.8.2 Evidence shall be Compliance to relevant regulatory requirements such as Employment Complied provided that employees Act 1955, Immigration Act 1959/63 and Workmen’s Compensation Act and groups including local 1952 are observed when recruiting foreign workers. The employment of communities, women, and foreign workers was implemented without affecting the opportunities for migrant workers have not been discriminated local communities. against. Local workers are covered under SOCSO scheme and the migrant Major Compliance workers are covered under Foreign Workers Compensation scheme (FWCS). FWCS for both Jabor POM and Estate are issued by RHB Insurance Bhd. Interviews with workers revealed their satisfaction with the PMU for job opportunities and they enjoy all common welfare amenities like free housing, free water and electricity supplies, medical care. They are aware of the complaints mechanism by which they can make any complain or request to the management, especially during morning muster and OSH meetings. 6.8.3 It shall be Depending on the nature of work positions, The PMU management Complied demonstrated that takes into considerations the needs for technical recruitment selection, qualifications/experience and related skills in recruitment selection, hiring and promotion are hiring and promotion exercises. based on skills, capabilities, qualities, and It was verified that the promotions to higher position at the estates and medical fitness necessary POM were based on evaluations which considered the skill, capabilities, for the jobs available.

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Minor Compliance qualities and medical fitness of the employees.

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 A documented “Social Policy” dated Apr.2011 signed by Frank Anthony Complied sexual and all other forms Dass stated clearly that the company will develop and apply a policy to of harassment and prevent sexual harassment and other forms of violence against women. violence shall be The policy is publicly displayed. implemented and communicated to all Interviews with female staff and workers reflected communication on levels of the workforce. harassment issue, general understanding of sexual harassment in the Major Compliance workplace and the mechanism to report an alleged sexual harassment or violence. Both Jabor POM and Estate established separate Gende Committee and held separate meeting. Todate no sexual harassment reported. Latest Gender Committee meeting in Jabor Estate was on 4 May 2015. Some activities conducted by the committee was celebration of Mother’s Day, briefing and free PAP smear test as well as briefing to the male workers with regards to Sime Darby sexual harassment policy. 6.9.2 A policy to protect The PMU’s commitment to protect the reproductive rights and rights to Complied the reproductive rights of have a family of the workers especially women is evidently stated in the all, especially of women, “Social Policy” dated Apr.2011 signed by Frank Anthony Dass stated shall be implemented and clearly that the company will develop and apply a policy to prevent communicated to all levels of the workforce. sexual harassment and other forms of violence against women. Major Compliance Local female staff is fully aware that they are entitled for two months paid maternity leave. One record on pregnant female worker since last

audit, i.e. Che Siti Fatimah, maternity leave paid for 60 days for the period Dec 2014 till Feb 2015. 6.9.3 A specific grievance With regards to no harassment or abuse in the work place, and Complied mechanism which reproductive rights it is stated clearly in sexual harassment complaints respects anonymity and procedures of the PMU that details of the complainants will be treated as protects complainants private and confidential. where requested shall be established, implemented, Management confirmed that there has been no report of sexual and communicated to all harassment in the PMU so far. levels of the workforce. Minor Compliance 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 Onsite assessment verified that the current and past prices paid for FFB Complied prices paid for Fresh Fruit pricing were displayed at the Mill and Estate offices. Bunches (FFB) shall be publicly available. Minor Compliance 6.10.2 Evidence shall be FFB prices were made available via POM office’s external Notice Board Complied available that and mill office records. The POM has treated out-growers and other growers/millers have local business fairly. Pricing mechanism for FFB is fair and transparent explained FFB pricing, and was set based on FFB grading as per MPOB approved. The POM and pricing mechanisms for FFB and hired a licensed grader based MPOB specification. At the same time,

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Report No.: R9282/12-4 Sime Darby Plantation Sdn Bhd Page 40 of 66 SOU 12 Jabor: Surveillance Assessment ASA-04 inputs/services shall be the POM also has MPOB grader to supervise POM grader and approve documented (where these the grades given by the POM grader. Current and past prices paid for are under the control of FFB were publicly available and verified through interviews. the mill or plantation). Mechanisms are available to the public upon request. Major Compliance 6.10.3 Evidence shall be Stakeholder interviews conducted during this assessment with suppliers, Complied available that all parties contractors, and relevant parties including local and foreign workers understand the confirmed that understand the contractual agreements (such as terms contractual agreements and payment) they enter into with the PMU. they enter into, and that contracts are fair, legal and transparent. Minor Compliance 6.10.4 Agreed payments Agreed payments are made promptly within the 30 days of the following Complied shall be made in a timely month. Through interviews made, there is no evidence to suggest of any manner. unfair business practices with the local businesses. Minor Compliance Criterion 6.11 Growers and millers contribute to local sustainable development where appropriate. Indicators Findings and Objective Evidence Compliance 6.11.1 Contributions to The PMU’s contribution towards local communities had been evidenced Complied local development that in several social areas and verified during on site visit as follows: are based on the results of consultation with local  Briefing and free PAP smear test for female staff, workers’ spouses communities shall be and surrounding local communities. demonstrated.  Blood donation campaign 19 Oct. 2014 with 56 participants from Minor Compliance mill, estate and local communities  Receiving visitors for study tour from MPOB Pahang on 8 Jan 2015  Spring cleaning and maintenance activities for Jabor Estate Mosque on 3 Apr 2015.  Free helmet/hard head distribution day to all workers who are riding motorcycles to come to work.  Main river clearing activities on 10 Apr 2015.  Donation to Klinik Kesihatan Cheneh for “Konvensyen Kesihatan Warga Emas Bersama”. RM200 payment made on 11 Mar. 2015. 6.11.2 Where there are It was verified that there were no smallholder scheme programs at the Not scheme smallholders, PMU. Applicable there shall be evidence that efforts and/or resources have been allocated to improve smallholder productivity Minor Compliance

Criterion 6.12 No forms of forced or trafficked labour are used. 6.12.1 There shall be Audit of employment records such as work permits in an estate office Complied evidence that no forms of confirmed that all foreign workers were recruited through legal means forced or trafficked labour and according to the regulatory requirements. are used. The existing “Social Policy” dated Apr. 2011 signed by Frank Anthony Major Compliance Dass stated clearly that the company does not condone forced labour or child labour. Interviews with foreign workers and checking of their files are confirmed that there were no forced or trafficked labours.

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6.12.2 Where applicable, There was no evidence of contract substitution and this was confirmed Complied it shall be demonstrated from interviews with workers and relevant stakeholders. that no contract substitution has occurred. Minor Compliance

6.12.3 Where temporary Specific policy on foreign workers has been prepared through workers Complied or migrant workers are agreement signed by the foreign workers “Kontrak Pekerjaan Tenaga employed, a special Kerja Asing – Semenanjung Malaysia [April 2013]”. Implementations of labour policy and the agreement are verified to be satisfactory. The agreement is also procedures shall be established and approved by the Indonesian Consulate in Kuala Lumpur. implemented.  Major Compliance Criterion 6.13 Growers and millers respect human rights. Indicators Findings and Objective Evidence Compliance 6.13.1 A policy to respect Social Policy dated Apr 2011 and signed by Frank Anthony Dass to Complied human rights shall be respect human rights has been documented and communicated to all documented and levels of the workforce and operations. communicated to all levels of the workforce and operations (see Criteria 1.2 and 2.1). Major Compliance

6.13.2 As long as children Not applicable as there are no foreign workers’ children in the PMU. Not of plantation workers of Applicable Sabah and Sarawak are not secured a right to go to government school, the plantation companies should engage in a process to secure the children of the plantation workers access to education as a moral obligation. Minor Compliance

Principle 7: Responsible development of new plantings SOU 12 Jabor has a documented procedure for this development but has not carried any new plantings after Nov 2005. Therefore, the requirements of Principle 7 are not applicable during this assessment.

Principle 8: Commitment to continuous improvement in key areas of activity

Criterion 8.1 Growers and millers regularly monitor and review their activities, and develop and implement action plans that allow demonstrable continual improvement in key operations. Indicators Findings and Objective Evidence Compliance 8.1.1 The action plan for The PMU had planned and progressively implemented the continual Complied continual improvement improvement activities, both in palm oil mill and estates: shall be implemented, based on a consideration  Increase in the planting of beneficial plants to reduce the use of

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Report No.: R9282/12-4 Sime Darby Plantation Sdn Bhd Page 42 of 66 SOU 12 Jabor: Surveillance Assessment ASA-04 of the main social and pesticides. environmental impacts and opportunities of the  The composting plant recycles waste (POME and EFB) from the mill grower/mill, and shall to produce compost for land application at the estate. include a range of  Increase in the number of barn owl boxes. Indicators covered by these Principles and  Reduction in diesel usage from 8000 litres/month to 3,000 litres/month Criteria. with the operation of a new boiler.  Piped water supply for domestic use from Jabatan Air Terengganu. As a minimum, these shall include, but are not  Repair the roads to the village. necessarily be limited to:  Briefing and free PAP smear test for female staff, workers’ spouses and surrounding local communities. • Reduction in use of  Blood donation campaign 19 Oct 2014 with 56 participants from mill, pesticides (Criterion 4.6); estate and local communities. • Environmental impacts (Criteria 4.3, 5.1 and 5.2);  Receiving visitors for study tour from MPOB Pahang on 8 Jan 2015. • Waste reduction  Spring cleaning and maintenance activities for the mosque on 3 Apr (Criterion 5.3); 2015. • Pollution and  Free helmet/hard head distribution day to all workers who are riding greenhouse gas (GHG) motorcycles to come to work. emissions (Criteria 5.6 and 7.8);  Main river clearing activities on 10 Apr 2015. • Social impacts (Criterion 6.1); • Encourage optimising the yield of the supply base. Major Compliance

3.1.1 Supply Chain Certification Standards Findings - on CPO Mill

The Supply Chain module applied at Jabor POM during this assessment is Module E – CPO Mills: Mass Balance (MB).

Details of findings are as follows:

E.1 Definition Indicators Findings and Objective Evidence Compliance E.1.1 Complied Certification for CPO mills is The POM processed FFB from its own supply base and necessary to verify the volumes of Outside Crop Producers (see Section 1.3). The CPO Mill is certified and uncertified FFB entering therefore applying the Mass Balance (MB) module. the mill and volume sales of RSPO certified producers. A mill may be taking delivery of FFB from uncertified growers, in addition to those from its own certified land base. In that scenario, the mill can claim only the volume of oil palm products produced from processing of the certified FFB as MB.

E.2 Explanation Indicators Findings and Objective Evidence Compliance E.2.1 Complied The estimated tonnage of CPO and PK products that could

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The estimated tonnage of CPO and potentially be produced by the POM is recorded in this PK products that could potentially be Assessment Report. This figure represents the total volume of produced by the certified mill must be certified palm oil product (CPO and PK) that the certified mill is recorded by the CB in the public allowed to deliver in a year. The actual tonnage produced has summary of the P&C certification report. been recorded in each annual surveillance report (see Section This figure represents the total 1.8.2 Table 6 and Section 1.8.3 Table 7). volume of certified palm oil product (CPO and PK) that the certified mill is allowed to deliver in a year. The actual tonnage produced should then be recorded in each subsequent annual surveillance report.

E.2.2 The POM meet all registration and reporting requirements for Complied The mill must also meet all the appropriate supply chain through the RSPO Supply Chain registration and reporting managing organization (RSPO IT platform or book and claim). requirements for the appropriate supply chain through the RSPO supply chain managing organization (RSPO IT platform or book and claim).

E.3 Documented procedures E.3.1 Documented procedure for MB Module is: Doc. No. Complied The site shall have written SD/SDP/PSQM/001 Rev 0 (01/03/15) Standard Operation procedures and/or work instructions Procedure for Sustainable Supply Chain and Traceability. to ensure the implementation of all The procedure covered the implementation of all elements of the elements specified in these requirements. This shall include at MB Module. minimum the following: a) Complete and up to date The documented procedure and its implementation confirmed Complied procedures covering the to have complied with all the specified requirements of Mass implementation of all the elements in Balance (MB) Module E. these requirements b) The name of the person having Palm Oil Mill Manager, Mr Sharir Abdullah Sadali was Complied overall responsibility for and authority interviewed. over the implementation of these His staff, Mr Sohlan Muthuvelu (Assistant Mill Manager) has requirements and compliance with all been appointed as the PIC for the overall responsibility and applicable requirements. This person authority for implementation and compliance with the shall be able to demonstrate documented procedure. He and other relevant staff under his awareness of the site’s procedures for the implementation of this charge demonstrated competence, skill and knowledge of the standard. RSPO Supply Chain Certification Standard Module E requirements and its implementation.

Interviews of the relevant staff confirmed their knowledge of the RSPO Supply Chain Certification requirements for the respective areas of operations.

The Palm Oil Mill Organization Chart and job responsibilities of employees (Mill Manager, Assistant Managers, Engineers, Assistant Engineers, Technicians, Security Officer, Weighbridge Operator, Laboratory Chemist and clerks) have been suitably defined in the Sime Darby Quality Management System Manual.

E.3.2 For the period FY 2014/2015, the POM received and Complied The site shall have documented processed FFB from the PMU Jabor estate and FFB from procedures for receiving and Outside Crop Producers. processing certified and non-certified FFBs. All supplies of FFB were subjected to verification of FFB Consignment Note by weighbridge personnel and quality checks (Crop Quality Report - grading chit) by the mill

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personnel to determine the origin, quantity and quality of the FFB. The Weighbridge Ticket for FFB indicated the date, vehicle number, estate & field number, harvesting date, security seal number and weight.

Monthly FFB and CPO/PK Report and YTD Report for the period July 2014 to date were verified to have complied with requirements of the MB Module whereby the Palm Oil Mill received and processed FFB from its own estate and Outside Crop Producers.

E.4 Purchasing and goods in Indicators Findings and Objective Evidence Compliance E.4.1 The POM had maintained record of tonnages and supply Complied The facility shall verify and document source of FFB at the weighbridge station, in the Consignment the tonnages and sources of certified Note and Weighbridge Ticket. For FFB from its own estate, and non-certified FFBs received. other details include certificate no., GHG emission value, distance and country of origin.

Noted that there are FFB from Outside Crop Producers received and processed by the POM, which are considered as non-certified FFB using the Mass Balance Module.

E.4.2 The documented Supply Chain SOP has specified that the Complied The facility shall inform the CB responsible POM personnel shall check production quantity immediately if there is a projected against the certified amount and notify RSPO, the CB and overproduction of certified tonnage. PSQM Department of any projected overproduction of certified tonnage. So far, there is no projected overproduction. E.5 Record keeping Indicators Findings and Objective Evidence Compliance E.5.1 The SOP stated a retention period of at 10 years for all Complied a) The site shall record and balance records and reports. Pertinent records are properly filed, all receipts of RSPO certified FFB accessible and retrievable. The main records retained are and deliveries of RSPO certified CPO FFB Consignment Note, Weighbridge Tickets, Collection Note, and PK on a three-monthly basis. Despatch of CPO, MPOB L3 form. Inspection of records at b) All volumes of palm oil and palm the POM confirmed these were accurate and complete. kernel oil that are delivered are deducted from the material The POM had maintained a monthly summary of all receipts of accounting system according to FFB, production tonnage and dispatch of CPO and PK. This conversion ratios stated by RSPO. inventory is balanced every 3 months. c) The site can only deliver Mass Balance sales from a positive stock. Positive stock can include product ordered for delivery within three months. However, a site is allowed to sell short.(ie product can be sold before it is in stock). E.5.2 Not In cases where a mill outsources No outsourcing of activities. activities to an independent (not Applicable owned by the same organization) palm kernel crush, the crush still falls under the responsibility of the mill and does not need to be separately certified. The mill has to ensure that the crush is covered through a signed and enforceable agreement.

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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 Jabor POM has been able to comply with the requirements of the RSPO SCCS under the ‘MB’ module and is thus eligible for ‘MB’ trading for its palm products for year 2015/2016.

3.1.3 Monitoring of CSPO and CSPK traded:

The POM monitored the trading of the RSPO CSPO and CSPK via RSPO eTrace. Trade of GreenPalm is under a single SDPSB account. There is no trade under ISCC as the PMU is not certified for ISCC. The records maintained at the POM relied on internal communications of the trading done by the HQ and the CSPO delivered. The tonnages of CSPO traded as verified during assessment are as follows:

CSPO - Actual CSPK - Actual CSPO - Actual CSPK - Actual Jul 2013 / Jun 2014 Jul 2013 / Jun 2014 Jul 2014 till current Jul 2014 till current (MT) (MT) (MT) (MT) RSPO certified - - 10,447 2,849 Total Traded - - 7,944.84 0 Actual - - 8,018.40 1,960.31 Produced Notes:  Based on records maintained at the POM, it was verified that the total tonnage of CSPO traded has not exceeded the annual certified quantity.  All PK is delivered out as CSPK to the Sime Darby palm kernel crushing plant at Carey Island.

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 Observations (OBS) Follow up status (NCR)

Main Assessment 2009 5 Minor 1 Actions taken on the NCRs and OBS verified to be effective during ASA-01. Annual Surveillance-01 2012 5 (1 Major, 4 Minor) 6 Actions taken on the NCRs and OBS verified to be effective during ASA-02. Annual Surveillance-02 2013 2 Minor 0 Actions taken on the NCRs verified to be effective during ASA-03. Annual Surveillance-03 2014 2 Minor 6 Actions taken on the NCRs and OBS verified to be effective during ASA-04. Annual Surveillance-04 2015 3 Minor 0 Next assessment (Re-certification)

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Year 2014: Surveillance Assessment (ASA-03) (2 NCRs)

NCR # MYNI Details of NCR Indicator 1 of 2 5.2.4 Date issued: 22 May 2014 Minor Nonconformance: 1) Biodiversity Action Plan FY 2013/14 established and monitoring records showed availability of warning signage at the identified HCV but during audit no signage sighted at Boundary to reserve forest (Galing Forest Reserve) near field 09C. 2) Biodiversity Action Plan FY 2013/14 established and monitoring records showed availability of warning signage at the identified HCV but during audit no signage on “No Spraying, No Fishing, No Swimming” sighted at Buffer Zone (HCV 4) for Sg Jabor. Root Cause and Corrective Action: Root cause: Lack of follow up on the Biodiversity Action Plan. Corrective Action: To erect the appropriate signages.

Verification for closure: The appropriate signages have been erected accordingly. Corrective action taken by the PMU found to be adequate and acceptable. NC status verified by auditor: Closed by Date closed: 18 May 2015 OCL Verification (for effectiveness): Verified during Surveillance Assessment that the corrective action taken was implemented effectively.

NCR # MYNI Details of NCR Indicator 2 of 2 5.3.3 Date issued: 22 May 2014 Minor Nonconformance: Noted littering of plastic bottles in the small stream i.e. tributary of Sg Jabor at Field P10A. Root Cause and Corrective Action: Root cause: Lack of of awareness programs for internal and external stakeholders in prevention of pollution and littering on the streams. Corrective Action: To erect signages such as ‘No littering’ near the streams and conduct awareness programs for all relevant stakeholders.

Verification for closure: The appropriate signages have been erected accordingly. Awareness programs carried out and evidenced with records and photos. Corrective action taken by the PMU found to be adequate and acceptable. NC status verified by auditor: Closed by Date closed: 18 May 2015 OCL Verification (for effectiveness): Verified during Surveillance Assessment that the corrective action taken was implemented effectively.

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Year 2015: Surveillance Assessment ASA-04 (3 NCRs)

NCR MYNI Details of NCR Indicator Minor NC# 4.6.4 Date issued: 20 May 2015 NR-01 Nonconformance: Circle spraying in Field 98B at Jabor estate was in progress at the time of field audit. Sprayers were seen to be with the appropriate PPE. However, there was no portable signage to warn that spraying activity is in progress in that area.

Root Cause and Corrective Action: Root Cause: Lack of knowledge on the requirement of signage placement during spraying activities. Corrective Action: Training to be given to staff on the requirement and on what information to be available for the signage.

Verification for Closure: Off-site verification carried out. Verified that the Corrective Action Plan submitted on 26 May 2015 is acceptable.

NC status verified by auditor: Pending Date closed: Pending verification at next assessment Verification (for effectiveness): At next assessment

NCR MYNI Details of NCR Indicator Minor NC# 6.1.4 Date issued: 20 May 2015 JMD-01 Nonconformance: For the POM and Jabor Estate, action plans for social issues have been reviewed, followed-up and monitored accordingly. However, currently not all social issues arising from internal and external stakeholders were included in the action plans. For example, social issues arising from OSH meetings, external stakeholder consultation and gender committee meetings were not included.

Root Cause and Corrective Action: Root Cause: Social Representative was unaware that all social issues (even in other meetings) had to be documented into one social management plan. Corrective Action: The PSQM Social Executive will conduct training for the Social Representative at SOU 12 and the social management plan will be updated.

Verification for Closure: Off-site verification carried out. Verified that the Corrective Action Plan submitted on 26 May 2015 is acceptable.

NC status verified by auditor: Pending Date closed: Pending verification at next assessment Verification (for effectiveness): At next assessment

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NCR MYNI Details of NCR Indicator Minor NC# 6.5.3 Date issued: 20 May 2015 JMD-02 Nonconformance: At the workers’ quarters in Jabor Estate, it was found that the management had removed a majority of the fire extinguishers that have expired or non-functional. However, the number of functional extinguishers remaining is now not sufficient in relation to the number of housing units.

Root Cause and Corrective Action: Root Cause: Insufficient fire extinguishers due to: (a) Addition of new houses (8 houses) (b) Fire extinguishers sent for servicing (c) Lack of planning for service and back-up /contingency. Corrective Action: (a) Purchase new fire extinguishers for new houses. (b) Fire extinguishers location plan to be established. (c) P/O schedule with contingency.

Verification for Closure: Off-site verification carried out. Verified that the Corrective Action Plan submitted on 26 May 2015 is acceptable.

NC status verified by auditor: Pending Date closed: Pending verification at next assessment Verification (for effectiveness): At next assessment

Year 2014: Surveillance Assessment (ASA-03) (6 Observations) Status MYNI Opened Closed Follow up remarks Ref No: Location Details of Observation Indicator date date (if any)

SV-01 5.3.1 SOU 12 Scheduled waste 22 May 20 May Verified during inventory for Jabor Estate 2014 2015 surveillance should be in the assessment that action prescribed format as per taken. the documented procedure and they should use DOE’s online reporting system.

SV-02 5.6.2 SOU 12 Plans for the reduction or 22 May 20 May Verified during minimization of GHG 2014 2015 surveillance should be formulated: assessment that action New RSPO P&C (2013) taken. requirement. Will follow up next ASA.

JM-01 6.3.1 PMU – In the documented system 22 May 20 May Verified during Mill & for the handling of 2014 2015 surveillance Estate complaints and assessment that action

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grievances, there is a lack taken. of details in the process of how to ensure anonymity of complainants and whistleblowers.

JM-02 6.3.1 Jabor “Grievance and 22 May 20 May Verified during Estate Complaints Log Book” is 2014 2015 surveillance not effectively explained to assessment that action and used by the workers taken. or other stakeholders.

JM-03 6.9.1 PMU – The briefing sessions on 22 May 20 May Verified during Mill & sexual harassment 2014 2015 surveillance Estate matters have not assessment that action adequately covered all the taken. relevant parties’ i.e. male workers and contractors. Briefing sessions on sexual harassment issues were only involving women workers.

AL-01 - PMU The outside crop 22 May 20 May Verified during producers / associated 2014 2015 surveillance smallholders are still not assessment that action ready for assessment taken. under the required PMU Implementation plan. Ref: RSPO Certification Systems Annex 4 – Procedure for Annual Surveillance Assessment (A 4.2.2.2)

3.2.2 Identified Positive Elements

1) The PMU has good implementation of the RSPO sustainable activities.

2) The PMU has made significant contributions to the local communities for infrastructure, social and religious activities.

3.3 Summary of Feedback Received from Stakeholders and Findings

Prior to and during the Assessment, written and verbal feedback communicated from the stakeholders on the environmental and social performance of the PMU operations were sourced. All pertinent feedback issues were reviewed and followed up for verification and these had been accordingly incorporated into the report findings. See table below:

Year 2015: ASA-04 (2015) Communication done via email on 09 Apr 2015 (See list under para 2.5):

Stakeholders’ Feedback PMU Response CB verification / Follow up comments comments (if any) Government Agencies: No response needed Verified no response Nil No feedback received. needed

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Non-Governmental No response needed Verified no response Nil Organizations: needed No feedback received. Local Communities: Stakeholders interviews were PMU response required for the To be followed up in the made during assessment from following requests / suggestions next assessment 18 to 20 May 2015 at the PMU. raised during the Stakeholders’ consultation: A total of 9 stakeholders attended the Stakeholders’ 1. Allocate annual contribution to consultation during the the schools around the PMU assessment [ ie comprising without the necessity to submit Gender Committee members – letters every year. 0 nos, Workers – 2 nos, 2. Set aside a piece of land to Contractors/suppliers – 4 nos, recreate habitat for lost flora and Local community (School & fauna due to river diversion within Clinics) – 0 nos, Government the estate. agencies (Auxilliary Police, 3. Fund for workers dependence Firefighters) – 0 nos, NGO’s – who are diagnose with chronic 0 nos and Head of Village – 3 illnesses. nos.]. In addition, workers and committee representatives and members were also interviewed during the on-site assessment.

Other Interested parties: No response needed Verified no response Nil No feedback received. needed

Year 2014: ASA-03 (2014) Communication done via email on 10 Apr 2014 to various categories of stakeholders:

Stakeholders’ Feedback PMU Response CB verification / Follow up comments comments (if any) Government Agencies: Ongoing consultations will be No feedback received. maintained. Verified during on-site Nil No response needed. assessment that no response is needed.

Non-Governmental Ongoing consultations will be Verified during on-site Nil Organizations: maintained. assessment that no No feedback received. No response needed. response is needed.

Local Communities: PMU response required for the Followed up during ASA- At the stakeholders’ Stakeholders contacted and following feedback during the 04. consultationIn during consulted during the Stakeholders’ consultation: the ASA-04 assessment provided assessment, the feedback. PMU should give more attention representative from to the SK Lembah Jabor as its parent-teachers official sponsored school to association improve achievement and further confirmed that a promote the PMU CSR activities contribution has such as: been received from  Providing assistant in repairing the PMU in 2014 for underground water pump which the general is currently broken down. The improvement of the school children are now mainly school. depending on rain water

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collected in three water tanks.  Sponsoring under-privileged school children which the school management has identified with doctor testimonies that the main reasons for their lagging behind is mainly due to socio-economic conditions of their parents. Sponsoring annual awards to school children with high achievement either in academics or co-curricular activities. SK Lembah Jabor is rank top 10 by the Terengganu state and has been representing the state in national level competition for the past few years. Short of budget and sponsorship renders the involvement of the school in these competitions very limited. Other Interested parties: No response needed Verified no response Nil No feedback received. needed

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4.2 INTERTEK- RSPO P&C Certificate details for SDPSB Jabor (Re-Certification)

Certificate No: RSPO 928288 Original Issue date: 7 Jul 2011 New issue date (ASA-04): 7 Jul 2015 Expiry date: 6 Jul 2016 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 12 Jabor Address of POM: Mukim Hulu Jabor, Kemaman, Terengganu (Ladang Jabor, KB No. 7, 25990 Kuantan, Pahang) Standards: RSPO Principles and Criteria (Apr 2013); Malaysian National Interpretation (2014); RSPO Supply Chain Certification Standards (Nov 2014) for the Palm Oil Mill. Certification scope: Production of Crude Palm Oil and Palm Kernels Supply Chain module for Mass Balance (MB) CPO & PK:

Details of the Mill and Supply bases covered by this certificate and the tonnage approved are: GPS Reference Name Address Latitude Longitude

Jabor POM Mukim Hulu Jabor, Kemaman, Terengganu (Ladang Jabor, KB No. 7, 25990 Kuantan, 3°55.92” N 103°18.25’ E (Capacity: 25 MT/hr) Pahang) Mukim Hulu Jabor, Kemaman, Terengganu Jabor Estate (Ladang Jabor, KB No. 7, 25990 Kuantan, 3°55.92” N 103°18.25’ E Pahang)

Total annual certified tonnages of FFB processed, CPO and PK produced from the supply base to Jabor POM during the previous, current Assessment and next projected period are as follows:

2014 / 2015 2015 / 2016 POM 2013 / 2014 - Actual + Projected - Projected Total certified FFB 40,137 38,075 42,813 Processed (MT) Total certified CPO OER: OER: OER: 8,521 7,642 9,582 Production (MT) 21.23% 20.07% 22.38% Total certified PK KER: KER: KER: 2,368 2,170 2,534 Production (MT) 5.90 % 5.70% 5.92%

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Appendix A:

Qualifications of Lead Assessor and Assessment Team

Dr. Ooi Cheng Lee (OCL) Lead Assessor / Technical Expert (Palm Oil Mill, Environment, OHSAS, Social, HCV, Land Use and Supply Chain) - PhD in Welding, Cranfield University, UK - M.Sc. (Engineering) in Metallurgy, University of Birmingham, UK - B.App.Sc (Hons), Science University of Malaysia - Diploma in Translation for Science and Technology, Malaysia Translation Society

Dr. Ooi Cheng Lee is an IRCA Lead Auditor and Lead Tutor for ISO 9001. He is also involved in auditing in other integrated management systems. He has successfully completed the RSPO Lead Assessor Course for Principles and Criteria (RSPO P&C) and the RSPO Supply Chain Certifications (RSPO SCC). He is currently involved in the management of all types of system and process/product certification in Intertek. He has more than 32 years work experience in product and process specifications, research & development, inspection and testing, quality assurance, engineering development, training, product certification, auditing and quality management system certification. He has conducted assessments of organizations in Malaysia, Singapore, Indonesia, Vietnam, Philippines, China, Myanmar, Cambodia and other regional countries. Assessments include those of rubber and oil palm plantations in Malaysia and Indonesia. His previous position as the General Manager of Lloyd’s Register Quality Assurance (LRQA) Malaysia include the management of all types of systems certification, including that of environmental (ISO 14001), safety & health (OHSAS 18001) and Clean Development Mechanisms (CDM). He is currently the General Manager in Intertek Certification International Sdn. Bhd. He is a member of the Internal Review Panel for RSPO Assessment reports since May 2011. He is part of the RSPO CB Assessment team which audited RSPO certified Plantation Management Units since 2012.

Mr. N. Retnasabapathy (NR) – Assessor / Technical Expert (Good Agriculture Practice and Integrated Pest Management) – BSc in Agriculture

Mr. N. Retnasabapathy (NR) has over 25 years work experience in the plantation sector. He has held a Senior Management role in the estate field operations including GAP and IPM. He was a member of the Incorporated Society of Planters (ISP) and had implemented GAP, IPM and workers management system at various estates in Malaysia. He has successfully completed the IRCA accredited Lead Auditor course in ISO 9001:2008 and Intertek in House RSPO P&C MYNI Assessor course. He is a member of the RSPO CB Assessment team which audited several RSPO certified Plantation Management Units since 2009.

Mr. Jumat Majid (JM) – Assessor / Technical Expert (OHSAS, Social Responsibility and Workers Welfare) – BSc (Social Science) Mr Jumat Majid (JM) has over 13 years work experience in the agriculture sector. He has successfully completed the IRCA accredited Lead Auditor course in ISO 9001:2008 and RSPO P&C MY-NI Lead Assessor course. He has also successfully completed training programs in Organic Agriculture Development and had performed organic agriculture inspections and assessments for more than 6 years. He has been involved in NGO work in the areas of social impact assessments within the South East Asia region. He was part of the RSPO Assessment team which audited a RSPO certified Plantation Management Unit in 2010.

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Appendix B:

Certification Assessment Plan (Actual)

Date Time (Note 3) Assessors and Assessment Activity Asssessment Team 18/05/2015 8.00 am – 12.00 pm Travel to SOU 12 Jabor Palm Oil Mill (POM) Office 12.00 pm - 1.00 pm Lunch Break Day 1 1.00 pm – 1.30 pm Opening Meeting and Briefing at SOU 12 Jabor POM Office (to be attended by representatives from the Estates as well) 1.30 pm – 5.00 pm Document Review and Assessment by all Assessors on respective RSPO P&C:1 to 8 at POM OCL NR JMD Site assessment at Palm Oil Site assessment at Site assessment at Palm Oil Mill Palm Oil Mill Mill  P1 Transparency  P4 Best Practices at  P6 Employees, Individuals &  Supply Chain for POM (SCCS) Mill Communities incl. Gender  P5 Environmental,  P8 Continual Issues Conservation Improvement  P8 Continual Improvement  P8 Continual Improvement  Verification of effectiveness of corrective actions for non-conformances  Review of Time Bound Plan  Verification for compliance with rules on partial certification 5.00 pm – 6.00 pm Travel to Hotel & Break 6.00 pm – 7.00 pm Team Meeting and Discussion

Date Time Assessors and Assessment Activity 1905/2015 8.30 am – 12.30pm OCL NR JMD Day 2 Site assessment at Jabor estate Site assessment at Site assessment at Jabor  P1 Transparency Jabor estate estate  P2 Laws & regulations  P4 Best Practices at  P6 Employees,  P3 Economic & Financial Estates Individuals & Viability  P8 Continual Communities incl.  P5 Environmental, Conservation, Improvement Gender Issues including HCV  P8 Continual  P7 New Plantings Improvement  P8 Continual Improvement 12.30 pm – 1.30 pm Lunch Break 1.30 pm - 5.00 pm Continue site assessment at Jabor estate 5.00 pm – 6.00 pm Travel to Hotel & Break 6.00 pm – 7.00 pm Team Meeting and Discussion

Date Time Assessors and Assessment Activity 20/05/2015 8.30 am – 10.30pm Day 3 OCL NR JMD Site assessment Stakeholders’ Consultation on the following categories (see at SOU 12 Jabor Notes 1 and 2 below): Palm Oil Mill  Contractors  P2 Laws &  Suppliers regulations  Transporters  P3 Economic &  NGOs Financial Viability  Government Department / Agencies  P5  Local Community Environmental,  Settlers, in the case of independent and organized Conservation smallholders.  Supply Chain for Notes POM (SCCS) 1. It is mandatory for the PMU to inform Intertek and provide the P8 Continual information (as a minimum the no. of stakeholders in each applicable Improvement category and contact number) on the stakeholders prior to the

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assessment. 2. This will facilitate the random and impartial selection of stakeholders (including independent and organized smallholders, where applicable) and to meet the sample size requirement 10.30 am – 11.30 am Preparation for Closing Meeting 1130 am – 12.00 pm Team Meeting and Discussions with SOU 12 Jabor Management Representative 12.00 pm – 1.00 pm Closing Meeting & Briefing at Palm Oil Mill Office

Appendix C-1:

Location Map of Sime Darby SOU 12 Jabor, Kemaman, Terengganu, Malaysia

SOU 12 Jabor

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Appendix C-2:

Map of Sime Darby SOU 12 Jabor - Main Division

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Appendix C-3:

Map of Sime Darby SOU 12 Jabor - Sungai Pergam Division

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Appendix C-4:

Layout of Estates and HCV Areas near Estates

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Appendix D:

Photographs of Assessment Findings at SDPSB Jabor, Kemaman, Terengganu, Malaysia

Buffer zone area - oil palms marked with white Water catchment area at SOU 12 Jabor Estate paint and signage

High noise area – warning sign at engine room High noise area – warning sign and safety sign

Schedule waste store at SOU 12 Jabor POM Types of achedule waste inside store

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Appendix E:

Time Bound Plan as submitted by SDPSB (updated as at Mar 2015)

Table 1: Initial Timebound Plan and Summary of RSPO Certification Status as at Mar 2015 This document shall be read together with the Attachments (I & II)

Financial year (July –June) Targeted Achieved/Status Attachments Jun-08 5 SOUs Achievement of Timebound Plan Sime Darby Plantation has had all its SOUs (Malaysian & Indonesian) completing the RSPO Main Assessment by end Dec 2011 in 2008/2009 20 SOUs accordance to the initial timebound plan. As (from Malaysia and at Dec 2011, all Malaysian SOUs have been Indonesia) RSPO certified (with the exception of 2 new oil mills i.e. Pagoh and Sua Betong Oil Mills commissioned to replace the current oil mills after the initial timebound plan targets). Both For details please refer to 2009/2010 20 SOUs new mills/SOUs have undergone RSPO Attachments: (from Malaysia and Main Assessment and certified in early 2014. i) SDP - RSPO Certification Status for Indonesia) Malaysia Operations 98% of Sime Darby Plantation's upstream ii) SDP- RSPO Certification Status for operations is RSPO certified, one SOU - PT Indonesia Operations MAS pending certiifcation in Indonesia due iii) RSPO SCCS status for Sime Darby 2010/2011 (End Dec 17 SOUs to some social disputes. Sime Darby Plantation (Downstream Operations) 2011) (from Malaysia and Plantation will proceed with the next steps of Indonesia) certification upon satisfactory resolution of the matter. Note: Time-bound plan to achieve 100% RSPO certification has shifted to 2015 . Revision of total number of SOUs The total number of mills have been revised from 59 w.e.f Aug 2013 due to strategic alignments/closure of mills.

Note: SOU - Strategic Operating Units (consisting of one oil mill and supplying estates)

Table 2: Details of RSPO Certification Status as at Mar 2015 This document shall be read together with the Attachments (I & II)

Status Malaysia Indonesia Total Remarks Malaysia RSPO Certified 34 24 58 * Effectively 34 SOUs. - Sg Samak and Jeleta Bumi, Yong Peng, Sepang, Mostyn and Segaliud Palm Oil Mills have been closed down.

Indonesia * Effectively 25 SOUs

Undergoing Indonesia Stage 1 or 0 1 1 * PT MAS has undergone RSPO Main assessment and is delayed due to Stage 2 some social disputes.

Total SOUs 34 25 59 Note: Revised number of SOUs for SDP is 59 beginning Aug 2013.

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Attachment I: SDPSB - RSPO Certification Status for Malaysia Operations

Date of End Date of Certificate Number Certification Certification 1 Sg. Dingin Karangan, 12 Aug '10 11 Aug '15 SPO 550179 Active Kedah 2 Chersonese Kuala 5 Oct '11 4 Oct '16 CU-RSPO-815148, Active Kurau, SPO 590800 Perak 3 Elphil Sg Siput, 18 Jun '11 17 Jun '16 SPO 550180 Active Perak 4 Flemington Teluk Intan 5 Oct '11 4 Oct '16 CU-RSPO-819144, Active SPO 590802 5 Seri Intan Teluk Intan 3 Mar '11 2 Mar '16 CU-RSPO-811218, Active RSPO 0016 5 Selaba Teluk Intan 3 Mar '11 2 Mar '16 CU-RSPO-819142, Active RSPO 0015 5a Sg Samak 3 Mar '11 Not Not Applicable Withdrew. Applicable Ceased operations. 6 Tennamaram Bestari 3 Mar '11 2 Mar '16 CU-RSPO-819143, Active Jaya, RSPO 0014 Selangor 7 Bkt Kerayong Kapar, 15 Apr '11 14 Apr '16 SPO 550181 Active Selangor 8 East Carey 19 May '10 18 May '15 SPO 543543 Active Island, Selangor 9 West Carey 19 May '10 18 May '15 SPO 543594 Active Island, Selangor 9a Sepang Sepang, 19 May '10 Not Not Applicable Withdrew. Selangor Applicable Ceased operations. 10 Bukit Puteri Raub, 7 Jul '11 6 Jul '16 CU-RSPO- Active Pahang 815147, 18502206001 11 Kerdau Termeloh, 7 Jul '11 6 Jul '16 CU-RSPO- Active Pahang 819155, 18502207001 12 Jabor Kuantan, 7 Jul '11 6 Jul '16 CU-RSPO- Active Pahang 819156, RSPO 928288 13 Labu Nilai, Negeri 30 Dec '11 29 Dec '16 CU-RSPO-819163, Active Sembilan SGS-RSPOPM- MY13/01284 14 Tanah Merah Port 19 May '10 18 May '15 SPO 541905 Active Dickson, Negeri Sembilan 15 Sua Betong Port 18 Feb '14 17 Feb '19 SGS-RSPO/PM- Active, New Sua Betong Oil Mill Dickson, MY14/01364 Application has been comissioned Negeri to replace Rantau Oil Sembilan Mill with Certificate No. CU-RSPO- 819165, Certificate date:- 30 Dec 2011 16 Kok Foh Bahau, 7 Jul '11 6 Jul '16 CU-RSPO- Active Negeri 819157, RSPO Sembilan 928188 17 Kempas Jasin, 19 May '10 18 May '15 RSPO 005 Active Melaka 18 Diamond Jasin, 5 Oct '11 4 Oct '16 CU-RSPO-819146, Active

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Jubilee Melaka SPO 591224 19 Pagoh Muar, Johor 28 Jan’14 27 Jan’19 SPO 600305 Active, New Pahoh Oil Mill has Application been commissioned to rreplace Nordanal Oil Mill with Certificate no. SPO 549297, certification date 7 Jan 2011 19a Yong Peng Yong Peng, 20 Oct ‘10 19 Oct ’15 SPO 550182 Withdreww, Johor Mill closed down 20 Chaah Chaah, 18 Nov ‘10 17 Nov ‘15 SPO 548299 Active Johor 21 Jabor Kluang, 19 May ‘10 18 May ‘15 RSPO 901888 Active Johor 22 Bukit Benut Kluang, 5 Oct ‘11 4 Oct ’16 CU-RSPO Active Johor 819147, SPO 591229 23 Ulu Remis Layang 12 Apr ‘11 11 Apr ‘16 SGS-RSPO/PM- Active Layang, 00722 Johor 24 Hadapan Layang 29 Mar ‘11 28 Mar ’16 SGS-RSPO/PM- Active Layang, 00715 Johor 25 Segaliud Sandakan, 20 May ‘10 19 May ’15 SPO 547123 Withdreww, Sabah Mill closed down 26 Sandakan Sandakan, 1 Oct ‘08 30 Sep ’18 SPO 537872 Active Bay Sabah 27 Melalap Tenom, 21 jan ‘11 20 Jan ’16 SPO 547124 Active Sabah 28 Binuang Kunak, 16 Jan ‘09 15 Jan ’14 RSPO 001 Active sabah 29 Giram Tenom, 16 Jan ‘09 15 Jan ’14 RSPO 002 Active Extension of eTrace Sabah granted by RSPO till mid Apr 2015 for SOU Binuang, Giram and Merotai to undergo the re-certification process. 30 Merotai Tawau, 16 Jan ‘09 15 Jan ’14 RSPO 004 Active Sabah 30a Jelata Bumi Kunak, 24 May ‘10 Not Not Applicable Withdrew, Sabah Applicable Ceased operations 30b Mostyn Kunak, 16 Jan ‘09 Not Not Applicable Withdrew, Sabah Applicable Ceased operations 31 Lavang Bintulu, 30 Dec ‘11 29 Dec ‘16 CU-RSPO 819166 Active Srawak 32 Rajawali Bintulu, 30 Dec ‘11 29 Dec ‘16 CU-RSPO Active Srawak 819167, RSPO 0020 33 Derawan Bintulu, 30 Dec ‘11 29 Dec ‘16 CU-RSPO Active Srawak 819169, RSPO 0019 34 Pekaka Bintulu, 30 Dec ‘11 29 Dec ‘16 CU-RSPO 815150 Active Srawak

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Attachment II: SDPSB - RSPO Certification Status for Indonesia Operations

Date of End Date of Certificate Number Certification Certification 1 PT LAHAN TANI SAKTI ALUR DUMAI Bagan Sinembah/Tanh 16 Jan ‘12 16 Jan ‘17 MUTU-RSPO/011 Putih, Pujud, Rokan Hilir, Riau 2 PT SAJANG HEULANG ANGSANA Sebamban, Indonesia 6 Jul ‘11 6 Jul ‘16 MUTU-RSPO/006b MINI 3 PT SAJANG HEULANG MUSTIKA OIL Sebamban, Indonesia 3 Jul ‘13 3 Jul ‘18 MUTU-RSPO/027 MILL

4 PT LADANGRUMPUN ANGSANA Sebamban, Indonesia 6 Jul ‘11 6 Jul ‘16 MUTU-RSPO/006a SUBURUBADI 5 PT LANGGENG BEBUNGA Pamukan Utara, Tanah 16 Mar ‘12 16 Mar ‘17 MUTU-RSPO/014 MUARAMAKMUR Grogot, Kotabaru/Pasir, Kalimantan Selatan/ Kalimantan Timur 6 PT KRIDATAMA SUKAMANDA Seruyan Tengah, Sampit, 5 Jul ‘11 5 Jul ‘16 MUTU-RSPO/003 LANCAR Seruyan, Kalimantan NG Tengah 7 PT BAHARI GEMBIRA LADANG Kumpeh Ulu, Jambi, Muaro 9 Jul ‘12 9 Jul ‘17 MUTU-RSPO/019 RIA Jambi, Jambi PANJANG 8 MANGGALA Riau, Indonesia 25 Nov ‘10 25 Nov ‘15 MUTU-RSPO/002 PT TUNGGAL MITRA PLANTATIONS 9 PT PARIPURNA PONDOK Pamukan Selatan, Tanah 16 Mar ‘12 16 Mar ‘17 MUTU-RSPO/016 SWAKARSA Grogot, Kotabaru, LABU Kalimantan Selatan 10 PT BERSAMA GUNUNG ARU Sebamban, Indonesia 5 Jul ‘11 5 Jul ‘16 MUTU-RSPO/005 SEJAHTERA SAKTI 11 PT GUTHRIE RANTAU Muara Lakitan, Lubuk 16 Mar ‘12 16 Mar ‘17 MUTU-RSPO/017

PECCONINA PANJANG Linggau, Musi Rawas Sumatera Selatan 12 PT LAGUNA MANDIRI RANTAU Sungai Durian, Kotabaru, 30 Dec ‘11 30 Dec ‘16 MUTU-RSPO/009 Kalimantan Selatan 13 PT LAGUNA MANDIRI BETUNG OIL Sungai Durian, Kotabaru, 1 Apr ‘14 1 Apr ‘19 MUTU-RSPO/009 MILL Kalimantan Selatan 14 PT INDOTRUBA SEKUNYIR Kalimantan Tengah, 23 Nov ‘10 23 Nov ‘15 MUTU-RSPO/001 TENGAH Indonesia 15 PT SWADAYA ANDIKA SELABAK Sungai Durian, Kotabaru, 16 Mar ‘12 16 Mar ‘17 MUTU-RSPO/015 Kalimantan Selatan 16 PT BINA SAINS SG. PINANG Muara Lakitan, Lubuk 11 Sep ‘12 11 Sep ‘17 MUTU-RSPO/020 CEMERLANG Linggau, Musi Rawas, Sumatera Selatan 17 PT TEGUH SEMPURNA PEMANTANG Kuala Kuayan, Sampit, 5 Jul ‘11 5 Jul ‘16 MUTU-RSPO/004 Kotawaringin Timur, Kalimantan Tengah 18 PT BHUMIREKSA NUSA TELUK BAKAU Pelangiran, Sg. Guntung, 11 Oct ‘11 11 Oct ‘16 MUTU-RSPO/008 SEJATI Indragiri llir, Riau 19 PT BHUMIREKSA NUSA MANDAH OIL Pelangiran, Sg. Guntung, 1 Apr ‘14 1 Apr ‘19 MUTU-RSPO/008 SEJATI MILL Indragiri llir, Riau 20 20 PT ANEKA TELUK SIAK Tualang, Perawang, Siak, 11 Oct ‘11 11 Oct ‘16 MUTU-RSPO/007 INTIPERSADA Riau 21 21 PT TAMACO GRAHA UNGKAYA Witaponda, Kolonodale, 10 Jul ‘12 10 Jul ‘17 MUTU-RSPO/018 KRIDA Morowali, Sulawesi Tengah 22 PT SIME INDO AGRO BK AJONG Kalimantan Barat, 18 Aug ‘10 17 Aug ‘15 SPO 541399 Indonesia 23 PT PADANG PALMA BLANG SIMPO Karang Baru, Kuala 3 May ‘13 3 May ‘18 MUTU-RSPO/026 PERMAI/PT PERKASA Simpang, Aceh SUBUR SAKTI Tamiang,Nangroe Aceh Darussalam 24 PT SANDIKA LEMBIRU Desa Suka Karya Kec. 3 Jul ‘14 2 Jul ‘19 MUTU-RSPO/044 NATAPALMA / Marau Kab. Ketapang, PT BUDIDAYA AGRO Kalimantan Barat

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LESTARI 25 PT MITRAL AUSTRAL MAS Mill Desa Rahayu Kec. Parindu Undergone RSPO Main Assessment. SEJAHTERA Kab.Sanggau, Kalimantan Delayed due to some disputes. Barat