Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas Grouping Annual Surveillance Assessment (ASA-04) Cum Extension of Scope

SIME DARBY PLANTATION SDN BHD

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

PLANTATION MANAGEMENT UNIT SOU 21 Gunung Mas Grouping Kluang, Paloh & Yong Peng, Johor, Malaysia Public Summary Report

Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope

ANNUAL SURVEILLANCE ASSESSMENT (ASA-04) CUM EXTENSION OF SCOPE REPORT ON RSPO CERTIFICATION

PUBLIC SUMMARY REPORT

SIME DARBY PLANTATION SDN BHD

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

PLANTATION MANAGEMENT UNIT SOU 21 Gunung Mas Grouping Kluang, Paloh & Yong Peng, Johor, Malaysia

Certificate No: RSPO 901888 Issued date: 19 May 2010 Expiry date: 18 May 2015

Assessment Type Assessment Dates Initial Certification (Main Assessment) 18 – 20 Feb 2009 Annual Surveillance Assessment (ASA-01) 16 – 18 Feb 2011 Annual Surveillance Assessment (ASA-02) 03 – 06 April 2012 Annual Surveillance Assessment (ASA-03) 18 – 22 Feb 2013 Annual Surveillance Assessment (ASA-04) cum 11 – 14 March 2014 Extension of Scope Re-Certification

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

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Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope

TABLE OF CONTENTS

Section Content Page No 1.0 SCOPE OF ANNUAL SURVEILLANCE ASSESSMENT (ASA-04) CUM EXTENSION OF SCOPE 1.1 Introduction 4 1.2 Location (address, GPS and map) mill, estates and hectarage 4 1.3 Description of supply base (fruit sources) 4-5 1.4 Year of plantings and cycle 5 1.5 Summary of Land Use – Conservation and HCV Areas 6 1.6 Other certifications held and Use of RSPO Trademarks 6 1.7 Organizational information/contact person 6 1.8 Tonnages Verified for Certification 7-8 1.9 Time Bound Plan 8 1.10 Abbreviations Used 9 2.0 ASSESSMENT PROCESS 2.1 Assessment Methodology, Plan & Site Visits 10 2.2 Date of next scheduled visit 10 2.3 Qualifications of the Lead Assessor and Assessment Team 10 2.4 Certification Body 11 2.5 Process of Stakeholder consultation 11-12 3.0 ASSESSMENT FINDINGS 3.1 Summary of findings 12 3.2 Status of Identified Noncompliance and Corrective Actions, Observations and 13 Identified Positive Elements 3.3 Summary of Feedback Received from Stakeholders and Findings 13 4.0 ASSESSMENT CONCLUSION AND RECOMMENDATION 4.1 Acknowledgement of Internal Responsibility and Confirmation of Assessment Findings 13

4.2 Intertek RSPO Certification Details for SOU 21 Gunung Mas grouping 14

APPENDICES Appendix A Assessment Plan 15-18 Appendix B Maps of location – Mill, Estates, Conservation and HCV areas 19-23

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Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope

1.0 SCOPE OF OF ANNUAL SURVEILLANCE ASSESSMENT (ASA-04) CUM EXTENSION OF SCOPE

1.1 Introduction This Annual Surveillance Assessment (ASA-04) cum Extension of Scope was conducted on the Plantation Management Unit (PMU) SOU 21 Gunung Mas grouping of Sime Darby Plantation Sdn Bhd (hereafter abbreviated as SDPSB), from 11 – 14 March 2014 , to assess if the organization’s operations of the mill and its supply bases were in compliance against the RSPO Principles and Criteria (April 2013), Malaysian National Interpretation (November 2010) and the RSPO Supply Chain Certification Standard (November 2011) for Palm Oil Mill. This assessment also includes a review of the changes made by the PMU to comply with the requirements of the ratified new RSPO Principles and Criteria (effective 25 April 2013). It was found that the PMU is aware of the new RSPO Principles and Criteria and the transition period for compliance but has not yet make the necessary changes required. The Extension of Scope is for the purpose of adding the Yong Peng Estate as part of of this PMU. This estate was certified by BSI under the PMU SOU 19A of Sime Darby Plantation Sdn Bhd.

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

1.2 Location (address, GPS and map) of palm oil mill and estates SOU 21 Gunung Mas grouping consists of one (1) palm oil mill, namely SOU 21 Gunung Mas Palm Oil Mill and four (4) estates as indicated in Table 1 below, which includes the addresses and GPS locations of the mill and estates. The location maps are provided in Appendix B. Table 1: Address of Palm Oil Mill, Estates and GPS Location

GPS Reference Name Address Latitude Longitude

Gunung Mas Palm Oil Mill KKS Gunung Mas, K/B No. 524, 86009 2.344º N 103.138º E (POM capacity: 60mt/hr) Kluang, Johor, West Malaysia. Gunung Mas Estate Ladang Gunung Mas, K/B No. 512, 86009 2.248º N 103.149º E (to be assessed in Re- Kluang, Johor, West Malaysia. certification Assessment) Kempas Klebang Estate Ladang Kempas Klebang, K/B No 105, 2.218º N 103.172º E (assessed in ASA-04) 86009 Paloh, Johor, West Malaysia. Bukit Paloh Estate Ladang Bukit Paloh, K/B No 107, 86009 2.140º N 103.175º E (to be assessed in Re- Paloh, Johor, West Malaysia. certification Assessment)

Yong Peng Estate Ladang Yong Peng, 83700 Yong Peng, 2.085º N 103.143º E (assessed in ASA-04) Johor, West Malaysia.

1.3 Description of supply base (fruit sources)

The supply base, i.e. FFB sources to the POM at SOU 21 Gunung Mas Grouping are from the abovementioned four estates and other certified estates of Sime Darby Plantation Sdn Bhd. POM further confirmed that for period FY2013- 2014, the PMU has not taken any FFB crop from outgrowers / independent suppliers / smallholders.

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Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope

Details of the planted hectarage for the FFB supply for SOU 21 Gunung Mas grouping are as shown in Table 2 below

Table 2: Estate Area Summary – 2013 / 2014 Area Summary (ha) – 2013 / 2014 Estate Certified Area Planted Area Gunung Mas Palm Oil Mill Gunung Mas Estate 3,472.70 2,981.88 Kempas Klebang Estate 2,473.50 2,205.83 Bukit Paloh Estate 3,082.83 2,828.66 Yong Peng Estate 3,381.23 2,989.28 Total: 12,410.26 11,005.65 Percentage: 100% 88.68% Note: There is no New Planting in any of the 4 estates of the certified areas since 1987. Notes: 1. This Annual Surveillance Assessment (ASA-04) cum Extension of Scope covered the overall land use for oil palm plantation areas, and the identified Conservation areas including HCV areas marked out at the estates. 2. The estates sampled for this Annual Surveillance Assessment (ASA-04) cum Extension of Scope have been selected based on their potential risks on social, environmental and biodiversity issues such as their proximity to forest reserves, hill sides, riparian zones and high conservation value areas. 3. Yong Peng Estate is now included as part of this PMU. This estate was previously certified by BSI under SOU19A – 28 October 2010.

1.4 Summary of plantings and cycle The 4 estates been developed beginning from 1987 and the latest being from 2012 (Re-planting) and are all currently in the 1st and 2 nd cycle of planting for the Oil Palms. The age profile is as shown in Table 3.

Table 3: Age Profile of Planted Oil Palm 2013 / 2014 Mature OP (ha) Immature OP (ha) Estate Name Year of Planting Cycle of Planting – Above 3 years – 3 years & below

2009 – 2012 2nd cycle Gunung Mas Estate st 2,677.14 304.74 1987 - 2008 1 cycle 2012 2nd cycle Kempas Klebang Estate 2,130.91 74.92 1991-2005 1st cycle nd 2009 – 2012 2 cycle Bukit Paloh Estate 2,601.13 1987 - 2008 1st cycle 227.53 Yong Peng Estate 1993-2008 2nd cycle 2,823.97 165.31 Total 10,164.79 1,118.59 Note: There is no New Planting in any of the 4 estates of the certified areas since 1987.

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Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope

1.5 Summary of Conservation and HCV Areas The summary of Conservation and HCV Areas as identified in SOU 21 Gunung Mas grouping during this Annual Surveillance Assessment (ASA-04) cum Extension of Scope in 2014 is as shown in Table 4 below: Table 4: Conservation and HCV Areas

# Statement of Land Use (Ha) 2012 / 2013 2013 / 2014 (Annual Surveillance (Annual Surveillance Assessment ASA-03) Assessment ASA-04) Hectarage – Ha Hectarage – Ha 1 Planted Area (ha) – Oil Palm

• Mature 7,373.51 10,233.15 1. Immature 642.86 722.50 2 Conservation Area (ha)

• comprising buffer zones along small streams, 58.66 58.66 hilly areas, swampy and unplantable areas 3 HCV Area (ha) 4. comprising buffer zones near forest reserves, water catchments, burial & 70.45 70.45 religious sites

1.6 Other certifications held and Use of RSPO Trademarks There are currently no other certifications held by SDPSB -SOU 21 Gunung Mas grouping PMU. The RSPO’s trademarks and logo are not being used by the PMU audited. Instructions for use were provided and acknowledged by the PMU through a signed Memorandum of commitment agreeing to adhere to the latest “RSPO Rules on Communications & Claims”.

1.7 Organizational information / Contact Person

At Head Office: Ms Sabrinah binti Marzuky Vice President II – Certification and Compliance Unit Sime Darby Plantation Sdn Bhd Wisma Guthrie, 21, Jalan Gelenggang, Bukit Damansara, 50490 Kuala Lumpur, Malaysia Tel: 03-78484000 Fax: 03-78484356 Email: [email protected]

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1.8 Tonnages Verified for Certification

The breakdown of all the suppliers and their tonnages of FFB supplied to the POM at SOU 21 Gunung Mas grouping based on the reporting period for 2013 / 2014 are as follows:

FFB Processed # Estate /Supplier Main Receiving Mill Certified By (MT) Gunung Mas Palm 2. Gunung Mas Estate 40,993.97 Intertek ( 19 May 2010) Oil Mill Gunung Mas Palm 3. Kempas Klebang Estate 38,437.49 Intertek ( 19 May 2010) Oil Mill Gunung Mas Palm 4. Bukit Paloh Estate 44,858.16 Intertek ( 19 May 2010) Oil Mill Gunung Mas Palm Previously by BSI under SOU19A – 28 5. Yong Peng Estate 34,914.99 Oil Mill October 2010 Sub-total Group 159,204.61 6. Simpang Kiri Estate 59.82 Chaah Palm Oil Mill BSI (18 November 2011) Lambak Estate Bukit Benut Palm CUC (05 October 2011) 7. 1,705.60 Oil Mill Bukit Benut Estate Bukit Benut Palm CUC (05 October 2011) 8. 639.72 Oil Mill Sg. Gemas Estate Kok Foh Palm Oil Intertek (7 July 2012) 9. 104.41 Mill Senarut Estate Kok Foh Palm Oil Intertek( 7 July 2012) 10. 68.11 Mill Sg. Labis & Sg Labis 11. Chaah Palm Oil Mill Utara Estate 26,425.17 BSI (18 November 2011) Bukit Benut Palm CUC (05 October 2011) 12. CEP Nyior Estate 19,537.97 Oil Mill Kok Foh Palm Oil Intertek (7 July 2012) 13. Muar River Estate 239.79 Mill 14. Chaah Estate 344.21 Chaah Palm Oil Mill BSI (18 November 2011) Sub-total non-group 49, 124.80

Grand total 208,329.40

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Total annual volumes / tonnages of FFB supplied from the supply base to SOU 21 Gunung Mas grouping POM during the previous period, current Annual Surveillance Assessment (ASA-04) cum Extension of Scope period and projected period are as follows:

FFB Processed in FFB Processed for FFB Processed in Estate / Supplier 2013 / 2014 2014 / 2015 2012 / 2013 - Actual + Projected - Projected MT % MT % MT % SOU 21 Gunung Mas 191,346.26 66.71 159,204.61 23.58 205,000 75.69 grouping Other certified Sime 95,507.84 33.29 49, 124.80 76.42 65,834.88 24.31 Darby estates Other Suppliers (OCP) 0.00 0.00 0.00 0.00 0.00 0.00 Total 286,854.10 100 208,329.40 100 270,834.88 100 SCCS Model for POM SG SG SG

The annual certifiable tonnages of CPO and PK production by SOU 21 Gunung Mas grouping from the supply base/suppliers as assessed and verified during the current Annual Surveillance Assessment (ASA-04) cum Extension of Scope (based on 2013 / 2014 data) are detailed as follows:

2013 / 2014 2014 / 2015 POM 2012 / 2013 - Actual + Projected - Projected Total FFB 286,854.10 208,329.40 270,834.88 Processed (MT) Total CPO Production 63,308.70 OER: 46,874.12 OER: 60,937.85 OER: (MT) 22.07% 22.50% 22.50% 15,776.98 Total PK Production KER: 11,458.12 KER: 14,895.92 KER: (MT) 5.50% 5.50% 5.50%

Note: Currently, the POM has established and maintained procedures for the book keeping and monitoring requirements for the CPO at the mill and was verified to be adopting the ‘Segregation – SG’ model in accordance with the RSPO Supply Chain Certification Standard (SCCS) requirements.

1.9 Time Bound Plan for Other Management Units

SDPSB Group operates 59 palm oil mills and 200 oil palm estates and schemes throughout Malaysia & Indonesia (as per updated on 21 March 2014). The organization is a member of RSPO since 8 th September 2004 and has been taking an active role in the RSPO certification. Currently, a significant number of its Certification Units is undergoing the RSPO certifying process in accordance with its time bound plan and has completed RSPO certification for all SOU’s. Based on the due diligence conducted on Sime Darby Plantation Sdn Bhd there were no significant land conflicts, no replacement of primary forest or any area containing HCVs since November 2005, no labour disputes that are not being resolved through an agreed process, no evidence of non-compliance with law in any of the non- certified holdings. (Source: http://www.simedarbyplantation.com/Sime_Darby_Plantation_in_Malaysia.aspx ).

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Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope

1.10 Abbreviations Used

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

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Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope

2.0 ASSESSMENT PROCESS

2.1 Assessment Methodology, Plan and Site Visits

Since 29 January 2014, Intertek has initiated public communications and notifications and invited the relevant stakeholders before the assessment to provide feedback and comments on their concern (if any) on SOU 21 Gunung Mas grouping regarding the environmental, biodiversity, community development and other relevant issues.

From 11 – 14 March 2014, the Assessment team of Intertek conducted the Annual Surveillance Assessment (ASA- 04) cum Extension of Scope in which 2 out of the 4 estates of SOU 21 Gunung Mas grouping namely Kempas Klebang estate and Yong Peng as well as the palm oil mill were assessed for compliance against the RSPO requirements. The number of estates sampled was based on a minimum sample of 0.8 √y where y is the number of management sub-units and the selection was made based on their potential risks on social, environmental and biodiversity issues such as their proximity to forest reserves, hill sides, riparian zones and high conservation value areas.

During the on-site assessment, relevant documents and records, including Standard Operating Procedures (SOP), management plans, hectarage development, FFB, CPO and PK production, oil palm age profile, operational controls and measures, operational data and records, training records, etc. were reviewed and verified for compliance. The Assessment team using the process approach auditing technique covered the palm oil mill and estate operations, agricultural practices, pest management, pesticide and fertilizer application, occupational health and safety, social accountability, environment and other requirements. Stakeholders’ interviews were conducted during the assessment and feedback obtained as part of information and evidence gathering. (See section 2.5 Process of stakeholder consultation).

SOU 21 Gunung Mas grouping POM was also assessed against the requirements for the Segregation Module as specified in RSPO Supply Chain Certification Standard for CPO mill. This part of the assessment covered the verification of implementation of documented procedures and availability of records to demonstrate compliance against all the elements for Segregation requirements. These include documented procedure, purchasing and goods in, record keeping, sales and goods out, processing, monitoring and traceability of the CSPO and CSPK quantities, training for staff and claims.

After completion of the on-site field assessment, Intertek also performed the evaluation of conformity against the RSPO Certification System requirements for CB. The assessment report, findings and associated documents were evaluated through an independent review by the Intertek Internal Evaluation Panel prior to submission of the Assessment Report to RSPO Secretariat for approval.

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

2.2 Date of next scheduled visit

The next scheduled visit will be the Re-Certification Assessment which will be carried out within a 9 to 12-months period after RSPO acceptance of this report and before the expiry of the certificate.

2.3 Qualifications of the Lead Assessor and Assessment Team

Details of the Lead Assessor and Assessment Team and summary of their competency and skill may be obtained from RSPO or Intertek Certification International .

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Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope

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.

2.5 Process of stakeholder consultation

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

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

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

Among the list of key stakeholders consulted was the following:

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

Among the list of key stakeholders consulted was the following:

Government Agencies (by emails) 1. Department of Lands And Mines (Kuala Lumpur) 10. Department of Environment (Johor) 2. Department of Environment (Kuala Lumpur) 11. Department of Forestry (Johor) 3. Department of Forestry Peninsular Malaysia 12. Department of Immigration (Johor) (Kuala Lumpur) 4. Department of Immigration (Kuala Lumpur) 13. Department of Irrigation & Drainage (Johor) 5. Department of Irrigation & Drainage (Kuala 14. Department of Labour (Johor) Lumpur) 6. Department of Labour (Kuala Lumpur) 15. Department of Occupational Safety & Health (Johor) 7. Department of Occupational Safety & Health 16. Department of Wildlife & National Parks (Johor) (Kuala Lumpur) 8. Department of Orang Asli Affairs (Kuala Lumpur) 17. Land and Mines Office (Johor) 9. Department of Wildlife & National Parks 18. Pertubuhan Keselamatan Sosial (SOCSO) (Johor) 19. Pejabat Buruh (Johor)

Statutory Bodies (by emails) 20. Malaysian Palm Oil Board (MPOB) 25. Malaysian Palm Oil Board (MPOB) - Sarawak Region 21. Malaysian Palm Oil Board (MPOB) - Northern 26. Malaysian Palm Oil Board (MPOB) - Sabah Region Region 22. Malaysian Palm Oil Board (MPOB) - Central Region 27. Malaysia Palm Oil Association (MPOA) 23. Malaysian Palm Oil Board (MPOB) - Southern 28. Malaysia Palm Oil Association Kuala Lumpur Region (MPOA) 24. Malaysian Palm Oil Board (MPOB) - Eastern 29. Malaysia Palm Oil Association Sabah (MPOA) Region

NGOs (by emails)

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30. All Women’s Action Society (AWAM) 60. Malaysian Nature Society Miri 31. BCSDM - Business Council for Sustainable 61. Malaysian Nature Society Pahang Development in Malaysia 32. Borneo Child Aid Society (Humana) 62. Malaysian Nature Society Perak 33. Borneo Resources Institute Malaysia (BRIMAS) 63. Malaysian Nature Society Pulau Pinang 34. Borneo Rhino Alliance (BORA) 64. Malaysian Nature Society Sabah 35. Center for Orang Asli Concerns COAC 65. Malaysian Nature Society Terengganu 36. Centre for Environment, Technology and 66. Malaysian Plant Protection Society (MAPPS) Development, Malaysia - CETDEM 67. Mountaineering and Outdoor Pursuits Association of 37. Consumers Association Of Penang - CAP Negeri Sembilan 68. National Council of Welfare & Social Development 38. EcoKnights Malaysia - NCWSDM 39. Environmental Management and Research 69. Sabah Wetlands Conservation Society (SWCS) Association of Malaysia (ENSEARCH) 40. Environmental Protection Society Malaysia 70. SEPA - Sabah Environmental Protection Association (EPSM) 41. Friends of the Earth, Malaysia 71. SUARAM - Suara Rakyat Malaysia 72. SUHAKAM - National Human Rights Society - 42. Future in Our Hands Society, Malaysia Persatuan Kebangsaan Hak Asasi Manusia 73. Sustainable Development Network Malaysia 43. Global Environment Centre (SUSDEN) 44. HUTAN - Kinabatangan Orang-utan Conservation 74. Tenaganita Sdn Bhd Programme 75. The Malaysian Forum of Environmental Journalist 45. Institute of Foresters, Malaysia (IRIM) (MFEJ) 76. TRAFFIC Southeast Asia - Wildlife trade & 46. JUST - International Movement for a Just World trafficking monitoring programme 47. Malaysian Environmental NGOs - MENGO 77. Transparency International - Malaysian Chapter 48. Malaysian National Animal Welfare Foundation - 78. Treat Every Environment Special Sdn Bhd. (TrEES) MNAWF 79. United Nations Development Programme - UNDP 49. Malaysian Nature Society (MNS) Kuala Lumpur Malaysia 50. Malaysian Nature Society Johor 80. Water Watch Penang (WWP) 51. Malaysian Nature Society Kedah 81. Wetlands International (Malaysia) 52. Malaysian Nature Society Kelantan 82. Wild Asia Sdn Bhd 53. Malaysian Nature Society Kuching 83. World Wide Fund for Nature (WWF) Malaysia 54. Malaysian Nature Society Melaka/Negeri 84. World Wide Fund of Nature (WWF) Sabah Sembilan 55. National Union of Plantation Workers (NUPW) 85. UNION – AMESU 86. Malaysian CropLife & Public Health Association 56. Partners of Community Organisations (PACOS) (MCPA) 57. Penang Institute previously known as Socio- 87. Pesticide Action Network Asia and the Pacific (PAN Economic & Environmental Research Institute AP) (SERI) 58. Proforest - South East Asia Regional Office 88. ENO Asia Environment 59. R.E.A.C.H. - Regional Environmental Awareness

Cameron Highlands

Local community (On-site interviews) Gender representatives Suppliers / Contractors Workers representatives Village Heads

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3.0 ASSESSMENT FINDINGS

3.1 Summary of findings

The assessment confirmed that SOU 21 Gunung Mas grouping demonstrated compliance against the RSPO Principles and Criteria (April 2013), Malaysian National Interpretation (MY- NI, November 2010) and RSPO Supply Chain Certification Standard (November 2011) for POM.

3.1.1 Supply Chain Certification Standards Findings - on CPO Mill

The Supply Chain model applied at SOU 21 Gunung Mas grouping - POM during this Annual Surveillance Assessment (ASA-04) cum Extension of Scope is Segregation – CPO Mills: SG

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 SOU 21 Gunung Mas grouping POM has been able to comply with the requirements of the RSPO SCCS under the SG’ model and is thus eligible for SG’ trading for its palm products for year 2013/2014.

3.2 Status of Identified Noncompliance and Corrective Actions, Observations and Identified Positive Elements

All previous non-conformances and observation have been closed off. During this assessment, there was 1 Minor & 2 Observations . The root cause and corrective action taken by the company were reviewed and these had been accordingly incorporated into the full detailed report.

Identified Positive Elements 1. SOU 21 Gunung Mas POM has maintained a high standard of housekeeping and cleanliness by implementing an effective 5S quality environment system. 2. Good quality creches have been established and maintained in the SOU21 estates. 3. Latest line-site houses provided indiacte a higher quality aesthetic finishing for benefit of workers.

3.3 Feedback Raised by Stakeholders and Findings

Intertek had obtained some written and verbal feedback from the stakeholders on the environmental and social performance of SOU 21 Gunung Mas grouping operations in the course of assessment and consultations. During the , all pertinent feedback issues were reviewed and followed up for verification and these had been accordingly incorporated into the full detailed report.

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Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope

4.0 Assessment Conclusion and Recommendation

Based on the findings above, Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping had been able to demonstrate its compliance with the RSPO Principles and Criteria (April 2013), Malaysian National Interpretation (MY-NI 2010) and the RSPO Supply Chain Certification Standard (November 2011) for Palm Oil Mill.

Therefore, it is recommended that the certification of Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping be approved and continued.

Full report signed off by:

Mohan Thavarajah Lead Assessor Intertek Certification International Sdn Bhd

4.1 Acknowledgement of Internal Responsibility and Confirmation of Assessment Findings

This is to acknowledge and confirm the assessment visits described in this report and the acceptance of the contents and findings in this assessment report.

Full report acknowledged and signed off by:

Sabarinah binti Marzuky Vice President II – Certification and Compliance Unit

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4.2 Intertek RSPO Certificate details for SOU 21 Gunung Mas grouping

Certificate No: RSPO 901888 Issue date: 19 May 2010 Expiry date: 18 May 2015 Organization Sime Darby Plantation Sdn Bhd Address of Head Office: Wisma Guthrie, 21, Jalan Gelenggang, 50490, Bukit Damansara, Kuala Lumpur RSPO Membership No: 1-0008-04-000-00 Plantation Management Unit: SOU 21 Gunung Mas grouping Address of POM: KKS Gunung Mas, K/B No. 524, 86009 Kluang, Johor, West Malaysia. Standards: RSPO Principles and Criteria (April 2013); Malaysian National Interpretation (November 2010); RSPO Supply Chain Certification Standards (November 2011) for the Palm Oil Mill. Certification scope: Production of Crude Palm Oil and Palm Kernels Supply Chain model for CPO & PK:

Details of the Mill and Supply bases covered by this certificate and the tonnage approved are:

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Appendix A:

Assessment Plan (Actual)

Date Time Assessors and Assessment Activity Asssessment Team 11/03/2014 9.00 – 1.00 pm Travel to SOU 21 Gunung Mas, Johor 1.00 pm -2.00 pm Lunch Break Day 1 2.00 pm – 3.00 pm Opening Meeting and Briefing at SOU 21 Gunung Mas– POM Office 3.00 pm – 6.00 pm Review of Documentation and Follow up Issues based the Previous Assessment • Review of changes for compliance to revised P&C 2013 • Review of Time Bound Plan • Verification for compliance with rules on partial certification 6.00 – 7.00 pm Break 7.00 –10.00 pm Team meeting and discussion

Date Time Assessors and Assessment Activity Assessment Team Mohan Thavarajah (MT) Chen Fai Kok (CFK) Jumat bin Majid (JMD) 12/03/2014 9.00 am Day 2 – 10.00 Meeting & Briefing at SOU 21 Gunung Mas (Palm Oil Mill Office) am 10.00 Site assessment at SOU 21 Site assessment at Yong Site assessment at Yong am – Gunung Mas Palm Oil Mill Peng estate (RSPO P&C: 1~8) Peng estate (RSPO P&C: 1~8) 1.00 pm (RSPO P&C: 1~8) • P4 Best Practices at Estates • P6 Employees, Individuals • Review of Time Bound Plan & Mill & Communities incl. Gender • Verification for Compliance • P7 New Plantings Issues with Rules on Partial • P8 Continual Improvement • P8 Continual Improvement Certification • P1 Transparency • P2 Laws & regulations • P3 Economic & Financial Viability • P5 Environmental, Conservation & Mill including HCV • P8 Continual Improvement • SCC for POM 1.00 pm – 2.00 Lunch pm 2.00 pm Continue site assessment Continue site assessment at Continue site assessment at -6.00 at SOU 21 Gunung Mas Yong Peng estate Yong Peng estate pm Palm Oil Mill 6.00 pm– Break 7.00 pm 7 – 10 Team meeting and discussion pm

Intertek RSPO Report: April 2014 Page 17 of 23 Public Summary Report

Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope

Date Time Assessors and Assessment Activity Assessment Team 13/03/2014 9.00 am Mohan Thavarajah (MT) Chen Fai Kok (CFK) Jumat bin Majid (JMD) Day 3 – 1.00 Site assessment at Kempas Site assessment at Kempas Site assessment at Kempas pm Klebang estate Smallholders Klebang estate & Smallholders Klebang estate & Smallholders (RSPO P&C: 1~8) (RSPO P&C: 1~8) (RSPO P&C: 1~8)

• P1 Transparency • P4 Best Practices at Estates & • P6 Employees, Individuals & • P2 Laws & regulations Mill Communities incl. Gender • P3 Economic & Financial • P7 New Plantings Issues Viability • P8 Continual Improvement • P8 Continual Improvement • P5 Environmental, Conservation & Mill including HCV • P8 Continual Improvement 1.00 pm – 2.00 Lunch pm 2.00 pm Stakeholder / Consultations: -6.00 pm • Contractors • Suppliers • Transporters • NGOs • Government Department / Agencies • Local Community

# Mandatory for each category to be audited 6.00 pm– Break 7.00 pm 7 – 10 Team meeting and discussion pm

Date Time Assessors and Assessment Activity Assessment Team 14/03/2014 9.00 am – 11.00 am Preparation of Closing Meeting Day 4 11.00 am – 12.00 pm Team Meeting and Discussions with SOU 21 Gunung Mas Management Representative 12.00 pm – 1.00 pm Closing Meeting & Briefing at Palm Oil Mill Office 1.00 pm – 2.00 pm Lunch 2.00 pm onwards Travel back to Kuala Lumpur

Intertek RSPO Report: April 2014 Page 18 of 23 Public Summary Report

Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope

Appendix B-1:

Location Map of SOU 21 Gunung Mas grouping

SOU 21 Gunung Mas

Intertek RSPO Report: April 2014 Page 19 of 23 Public Summary Report

Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope

Appendix B-2:

Location Map of Sime Darby Gunung Mas estate, Johor, Malaysia

Intertek RSPO Report: April 2014 Page 20 of 23 Public Summary Report

Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope

Appendix B-3:

Location Map of Sime Darby Kempas Klebang estate, Johor, Malaysia

Intertek RSPO Report: April 2014 Page 21 of 23 Public Summary Report

Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope

Appendix B-4:

Location Map of Sime Darby Bukit Paloh estate, Johor, Malaysia

Intertek RSPO Report: April 2014 Page 22 of 23 Public Summary Report

Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope

Appendix B-5:

Location Map of Sime Darby Yong Peng estate, Johor, Malaysia

Intertek RSPO Report: April 2014 Page 23 of 23