FELDA GLOBAL VENTURES PLANTATIONS (MALAYSIA) SDN BHD
RSPO Membership No: 1 0013 04 000 00
PLANTATION MANAGEMENT UNIT KKS Mercu Puspita Grouping Lahad Datu, Sabah, Malaysia
INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296 W)
Report No.: R9293/14 1 Felda Global Ventures Plantations (Malaysia) Sdn Bhd Page 2 of 69 KKS Mercu Puspita Grouping Main Assessment
MAIN ASSESSMENT REPORT ON RSPO CERTIFICATION
FELDA GLOBAL VENTURES PLANTATIONS (MALAYSIA) SDN BHD (358158-V)
RSPO Membership No: 1 0013 04 000 00
PLANTATION MANAGEMENT UNIT KKS Mercu Puspita Grouping Lahad Datu, Sabah, Malaysia
Certificate No: RSPO 929388 Issued date: 21 November 2014 Expiry date: 20 November 2019
Assessment Type Assessment Dates Pre Assessment Initial Certification (Main Assessment) 11–15 Aug 2014 Annual Surveillance Assessment (ASA 01) Annual Surveillance Assessment (ASA 02) Annual Surveillance Assessment (ASA 03) Annual Surveillance Assessment (ASA 04) 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 MAIN ASSESSMENT 4 1.1 Introduction 4 1.2 Location (address, GPS and map) of palm oil mill and estates 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 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 1.9 Time Bound Plan 8 1.10 Abbreviations Used 9 2.0 ASSESSMENT PROCESS 10 2.1 Assessment Methodology, Plan & Site Visits 10 2.2 Date of next scheduled visit 10 2.3 Qualifications of the Lead Assessor and Assessment Team 10 2.4 Certification Body 10 2.5 Process of Stakeholder consultation 11 12 3.0 ASSESSMENT FINDINGS 13 3.1 Summary of findings 13 43 3.2 Status of Identified Noncompliance and Corrective Actions, Observations and 44 Identified Positive Elements 3.3 Summary of Feedback Received from Stakeholders and Findings 53 4.0 ASSESSMENT CONCLUSION AND RECOMMENDATION 56 4.1 Acknowledgement of Internal Responsibility and Confirmation of Assessment Findings 56
4.2 Intertek RSPO Certification Details for KKS Mercu Puspita Grouping 57
APPENDICES Appendix A Qualifications of the Lead Assessor and Assessment Team 58 Appendix B Assessment Plan 59 Appendix C Maps of location – Mill, Estates, Conservation and HCV areas 60 66 Appendix D Photographs of Assessment findings at KKS Mercu Puspita Grouping 67 68 Appendix E Time Bound Plan for Other Plantation Management Units 69
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1.0 SCOPE OF MAIN ASSESSMENT
1.1 Introduction This Main Assessment was conducted on the Plantation Management Unit (PMU) KKS Mercu Puspita Grouping of Felda Global Ventures Plantations (Malaysia) Sdn Bhd (hereafter abbreviated as FGVPM), from 11 15 Aug 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 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/managed by Felda Global Ventures Plantations (Malaysia) Sdn Bhd.
1.2 Location (address, GPS and map) of palm oil mill and estates KKS Mercu Puspita Grouping consists of one (1) palm oil mill, namely Mercu Puspita Mill and four (4) estates as indicated in Table 1 below, which includes the addresses and GPS locations of the mill and estates. The location maps are provided in Appendix C. The 4 estates comprise of three FGVPM owned estates (viz., FGVPM Sahabat 07, FGVPM Sahabat 46 and FGVPM Sahabat 48) and one estate, FASSB Sahabat 06, managed by Felda Agricultural Services Sdn Bhd (FASSB). FASSB is a subsidiary company of FGVPM involved in R&D. There are no Felda Scheme Smallholders (settlers) in this PMU.
Table 1: Address of Palm Oil Mill, Estates and GPS Location GPS Reference Name Address Latitude Longitude Mercu Puspita Mill POM Kilang Sawit Mercu Puspita, Peti Surat 29, 91150 Cenderawasih, Lahad Datu, Sabah, 5°12’23’’N 119°0’47’’E (Capacity: 60 MT/hour) Malaysia FGVPM Sahabat 07 estate Ladang Sahabat 07, Peti Surat No. 77, 91150 Cenderawasih, Lahad Datu, Sabah, 5°9’8’’N 119°0’14’’E Malaysia FGVPM Sahabat 46 estate Ladang Sahabat 46, Peti Surat No. 46, 91550, Cenderawasih, Lahad Datu, Sabah, 5°9’6’’N 119°0’14’’E Malaysia FGVPM Sahabat 48 estate Ladang Sahabat 48, Peti Surat No. 48, 91550, Cenderawasih, Lahad Datu, Sabah, 5°9’6’’N 119°0’7’’E Malaysia FASSB Sahabat 06 estate Ladang Sahabat 06, Peti Surat No. 48, 91550, Cenderawasih, Lahad Datu, Sabah, 5°9’6’’N 119°0’14’’E Malaysia
1.3 Description of supply base (fruit sources)
The supply base i.e. FFB sources to the POM at KKS Mercu Puspita Grouping PMU are from the abovementioned 4 estates of this PMU, other PMUs of FGVPM and Outside Crop Producers.
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Details of the planted hectarage for the FFB supply for Mercu Puspita Grouping are as shown in Table 2 below.
Table 2: Estate Area Summary – as at Jul 2014
Area Summary (ha) as at Jul 2014 Estate Certified Area Planted Area – Oil Palm FGVPM Sahabat 07 estate 3,539.34 3,193.81 FGVPM Sahabat 46 estate 3,717.90 3,526.87 FGVPM Sahabat 48 estate 2,177.51 2,141.76 FASSB Sahabat 06 estate 1,647.89 1,563.29 Total: 11,082.64 10,425.73
Notes: 1. This Main Assessment covered the overall land use for oil palm plantation areas, and the identified Conservation areas including HCV areas (if any) marked out at the estates. 2. The estates sampled for this Main Assessment have been selected based on their potential risks on social, environmental and biodiversity issues such as their proximity to forest reserves, hill sides, riparian zones and high conservation value areas.
1.4 Summary of plantings and cycle The 4 estates been developed beginning from 1981 and the 2nd cycle of planting started from 2005. The age profile is as shown in Table 3.
Table 3: Age Profile of Planted Oil Palm as at Jul 2014 Estate Name Year of Planting Cycle of Mature OP (ha) Immature OP (ha) Planting – Above 3 years – 3 years & below 1985, 1986, 1987, 1990, 1993 1st 706.80 0 FGVPM Sahabat 07 2008, 2009, 2010, 2011, 2012, estate 2nd 1,073.68 1,413.33 2013, 2014 FGVPM Sahabat 46 1991 1st 3,526.87 0 estate FGVPM Sahabat 48 1992. 1993, 1996 1st 2,141.76 0 estate 2001, 2003, 2004, 2005, 1st 1,445.65 0 FASSB Sahabat 06 2006,2007, 2008, 2009 estate 2010 2nd 0 117.64 Total 8,894.76 1,530.97
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1.5 Summary of Conservation and HCV Areas The summary of Conservation and HCV Areas as identified in KKS Mercu Puspita Grouping during this Main Assessment in 2014 is as shown in Table 4 below:
Table 4: Conservation and HCV Areas
# Statement of Land Use (Ha) Jan – Dec 2013 (Main Assessment) Hectarage – Ha 1 Planted Area (ha) – Oil Palm Mature 8,894.76 Immature 1,530.97 2 Conservation Area (ha) comprising buffer zones along small streams, hilly areas, swampy and 203.81 unplantable areas 3 HCV Area (ha) comprising buffer zones near forest reserves, water catchments, burial & NIL religious sites
1.6 Other certifications held and Use of RSPO Trademarks The PMU is certified for ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007. 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
Name: Norazam Abdul Hameed Designation: General Manager, Sustainability and Quality Management (PSQM) Department Full Address: Plantation Sustainability and Quality Management (PSQM) Department, Felda Global Ventures Plantations (Malaysia) Sdn Bhd, Tingkat 8, Balai Felda, Jalan Gurney Satu, 54000 Kuala Lumpur Malaysia. Tel: 03 26005348 ext 5348 or 03 26005349 ext 5349 Fax: 03 26987816 Email: [email protected]
Name: Anthonius Sani Designation: Sustainability Manager, Plantation Sustainability and Quality Management (PSQM) Department Full Address: Plantation Sustainability and Quality Management (PSQM) Department, Felda Global Ventures Plantations Malaysia Sdn Bhd, 3rd Floor, Balai Felda, Jalan Gurney Satu, 54000 Kuala Lumpur, Malaysia. Tel: 03 26005348 ext 5348 or 03 26005349 ext 5349 Fax: 03 26987816 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 KKS Mercu Puspita Grouping based on the reporting period for Jan – Dec 2013 are as follows:
# Estate /Supplier FFB Processed (MT) Main Receiving Mill PMU Estates: 1. FGVPM Sahabat 07 estate 35,166.20 KKS Mercu Puspita 2. FGVPM Sahabat 46 estate 72,706.51 KKS Mercu Puspita 3. FGVPM Sahabat 48 estate 49,476.33 KKS Mercu Puspita 4. FASSB Sahabat 06 estate 26,892.25 KKS Mercu Puspita Sub-total from PMU estates 184,241.29 Other FGVPM PMU Estates: 5. FGVPM Sahabat 50 estate 4,164.98 6. Lancang Kemudi PMU and Baiduri Ayu PMU 3,158.71 Sub-total from other PMUs of FGVPM 7,323.69 Outside Crop Producers (OCP): 7. Syarikat Teck Huat Commodities Sdn Bhd 2,121.97 Grand total 193,686.95
Total annual volumes / tonnages of FFB supplied from the supply base to KKS Mercu Puspita Grouping POM during the previous period, current Main Assessment period and projected period are as follows:
FFB Processed in FFB Processed in FFB Processed for Estate / Supplier Jan – Dec 2013 Jan – Dec 2014 Jan – Dec 2015 - Actual - Actual + Projected - Projected MT % MT % MT % Certifiable FFB from Mercu 184,241.29 95.12 194,900 96.06 207,263 99.04 Puspita PMU Estates Non certifiable FFB from other FGVPM PMUs and 9,445.66 4.88 8,000 3.94 2,000 0.96 Outside Crop Producers Total 193,686.95 100 202,900 100 209,263 100 SCCS Model for POM MB MB MB
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The annual certifiable tonnages of CPO and PK production by KKS Mercu Puspita Grouping from the supply base / suppliers as assessed and verified during the current Main Assessment (based on Jan - Dec 2013 data) are detailed as follows:
Jan – Dec 2013 Jan – Dec 2014 Jan – Dec 2015 POM - Actual - Actual + Projected - Projected Total Certifiable FFB 184,241.29 194,900 207,263 Processed (MT)
Total Certifiable CPO OER: OER: OER: 40,736 43,463 46,427 Production (MT) 22.11 % 22.30 % 22.40 % Total Certifiable PK KER: KER: KER: 9,617 10,330 10,881 Production (MT) 5.22 % 5.30 % 5.25 %
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 ‘Mass Balance – MB’ model in accordance with the RSPO Supply Chain Certification Standard (SCCS) requirements. Verified activities and checked items for the SCCS of the POM are reported in section 3.1.1.
1.9 Time Bound Plan for Other Plantation Management Units
FGVPM Group operates 70 palm oil mills and 416 oil palm estates and schemes throughout Malaysia. The organization is a member of RSPO since 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 to achieve RSPO certification for all its plantation certification units by 2016.
Based on the due diligence conducted on FGVPM 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.
FGVPM Group had declared that there was no new planting and new acquisition of plantation lands and the progress of the said activities are ongoing. These have been reviewed and updated in the Time Bound Plan as submitted by FGVPM.
Details of the status of the Time Bound Plan as submitted by FGVPM are referred to in Appendix E (Part 2 of Assessment report).
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1.10 Abbreviations Used
BOMBA Fire Services Department ISCC International Sustainability & Carbon Certification CB Certification Body IUCN International Union for Conservation of Nature CHRA Chemical Health & Risk Assessment JAS Jabatan Alam Sekitar CPO Crude Palm Oil JKKP Jabatan Kesihatan dan Keselamatan Pekerja CSDS Chemical Safety Data Sheets KER Kernel Extraction Rate CSPO Certified Sustainable Palm Oil LTA Lost Time Accidents CSPK Certified Sustainable Palm Kernel MPOB Malaysia Palm Oil Board DOE Department of Environment MSDS Material Safety Data Sheets DOSH Department of Occupational Safety and Health MTCS Malaysia Timber Certification Scheme EFB Empty Fruit Bunch NCR Non Conformance Report EHS Environmental Health & Safety NGO Non Government Organization EIA Environmental Impact Assessment OER Oil Extraction Rate ETP Effluent Treatment Plant OHS Occupational Health & Safety Programme for the Endorsement of Forest Felda Agricultural Services Sdn Bhd PEFC FASSB Certification FELDA Federal Land Development Authority PK Palm Kernel Felda Global Ventures Plantations (Malaysia) PMU Plantation Management Unit FGVPM Sdn Bhd FFB Fresh Fruit Bunch POM Palm Oil Mill GAP Good Agriculture Practice POME Palm Oil Mill Effluent HCV High Conservation Values PPE Personal Protective Equipment Intertek Intertek Certification International Sdn Bhd SCCS Supply Chain Certification Standard IPM Integrated Pest Management SOP Standard Operating Procedures
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2.0 ASSESSMENT PROCESS
2.1 Assessment Methodology, Plan and Site Visits
Since 04 Jun 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 KKS Mercu Puspita Grouping regarding the environmental, biodiversity, community development and other relevant issues.
From 11 15 Aug 2014, the Assessment team of Intertek conducted the Main Assessment in which two estates (viz., FGVPM Sahabat 07 and FGVPM Sahabat 46 estate) of KKS Mercu Puspita Grouping 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).
KKS Mercu Puspita Grouping POM was also assessed against the requirements for the Mass Balance 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 Technical Reviewer/Panel which was subsequently validated by an External Peer Reviewer prior to the certification decision and approval of this report/certification by Intertek.
The details of the Assessment Plan (actual on site) are provided in Appendix B.
2.2 Date of next scheduled visit
The next scheduled visit will be the Surveillance Assessment which will be carried out within a 12 month period after the certification decision and approval of this report/certification.
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
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2.5 Process of stakeholder consultation
Stakeholder consultations began with notification of the upcoming assessment through the websites of RSPO, PGVPM and Intertek. E mails, facsimiles and letters of the same were sent to applicable stakeholders including government agencies, NGOs and local communities. Telephone enquiries were made prior to the actual assessment and stakeholder’s response and feedback received were followed up accordingly.
During the assessment, stakeholders were interviewed and their feedbacks were recorded. Among the stakeholders consulted were workers, trade union leaders, women representatives; local community leaders, representatives of government departments / agencies and NGOs; external FFB suppliers, fertilizer suppliers and contractors.
Details on stakeholders’ feedback, PMU response and Intertek verification / comments are provided in section 3.3.
Among the list of key stakeholders consulted was the following:
Government Agencies (by emails) 1. Department of Lands And Mines 10. Environment Protection Department Sabah 2. Department of Environment 11. Department of Forestry Sabah 3. Department of Forestry Peninsular Malaysia 12. Department of Immigration Sabah 4. Department of Immigration 13. Department of Irrigation & Drainage Sabah 5. Department of Irrigation & Drainage 14. Department of Labour Sabah 6. Department of Labour 15. Department of Occupational Safety & Health Sabah 7. Department of Occupational Safety & Health 16. Sabah Wildlife Department Sabah 8. Department of Orang Asli Affairs 17. Land and Mines Office Sabah 9. Department of Wildlife & National Parks
Statutory Bodies (by emails) 18. Malaysian Palm Oil Board (MPOB) 23. Malaysian Palm Oil Board (MPOB) Sarawak Region 19. Malaysian Palm Oil Board (MPOB) – Northern 24. Malaysian Palm Oil Board (MPOB) Sabah Region Region 20. Malaysian Palm Oil Board (MPOB) Central Region 25. Malaysia Palm Oil Association (MPOA) 21. Malaysian Palm Oil Board (MPOB) – Southern 26. Malaysia Palm Oil Association Sabah (MPOA) Region 22. Malaysian Palm Oil Board (MPOB) Eastern Region
NGOs (by emails) 27. All Women’s Action Society (AWAM) 56. Malaysian Nature Society Pulau Pinang 28. BCSDM Business Council for Sustainable 57. Malaysian Nature Society Sabah Development in Malaysia 29. Borneo Child Aid Society (Humana) 58. Malaysian Nature Society Terengganu 30. Borneo Resources Institute Malaysia (BRIMAS) 59. Malaysian Plant Protection Society (MAPPS) 60. Mountaineering and Outdoor Pursuits Association of Negeri 31. Borneo Rhino Alliance (BORA) Sembilan 61. National Council of Welfare & Social Development Malaysia 32. Center for Orang Asli Concerns COAC NCWSDM 33. Centre for Environment, Technology and 62. National Union of Plantation Workers (NUPW) Development, Malaysia CETDEM 34. Consumers Association Of Penang CAP 63. Partners of Community Organisations (PACOS) 64. Penang Institute previously known as Socio Economic & 35. EcoKnights Environmental Research Institute (SERI) 36. Environmental Management and Research 65. Pesticide Action Network Asia and the Pacific (PAN AP) Association of Malaysia (ENSEARCH) 37. Environmental Protection Society Malaysia (EPSM) 66. Proforest South East Asia Regional Office 67. R.E.A.C.H. Regional Environmental Awareness Cameron 38. Friends of the Earth, Malaysia Highlands 39. Future in Our Hands Society, Malaysia 68. Sabah Wetlands Conservation Society (SWCS) 40. Global Environment Centre 69. SEPA Sabah Environmental Protection Association 41. HUTAN Kinabatangan Orang utan Conservation 70. SUARAM Suara Rakyat Malaysia Programme 71. SUHAKAM National Human Rights Society Persatuan 42. Institute of Foresters, Malaysia (IRIM) Kebangsaan Hak Asasi Manusia 43. JUST International Movement for a Just World 72. Sustainable Development Network Malaysia (SUSDEN) 44. Malaysian CropLife & Public Health Association 73. Tenaganita Sdn Bhd (MCPA) 45. Malaysian Environmental NGOs MENGO 74. The Malaysian Forum of Environmental Journalist (MFEJ)
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46. Malaysian National Animal Welfare Foundation 75. TRAFFIC Southeast Asia Wildlife trade & trafficking MNAWF monitoring programme 47. Malaysian Nature Society (MNS) Kuala Lumpur 76. Transparency International Malaysian Chapter 48. Malaysian Nature Society Johor 77. Treat Every Environment Special Sdn Bhd. (TrEES) 49. Malaysian Nature Society Kedah 78. United Nations Development Programme UNDP Malaysia 50. Malaysian Nature Society Kelantan 79. UNION AMESU 51. Malaysian Nature Society Kuching 80. Water Watch Penang (WWP) 52. Malaysian Nature Society Melaka/Negeri Sembilan 81. Wetlands International (Malaysia) 53. Malaysian Nature Society Miri 82. Wild Asia Sdn Bhd 54. Malaysian Nature Society Pahang 83. World Wide Fund for Nature (WWF) Malaysia 55. Malaysian Nature Society Perak 84. World Wide Fund of Nature (WWF) Sabah
Local community (On site interviews) Gender representatives Suppliers / Contractors Workers representatives Village Heads
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3.0 ASSESSMENT FINDINGS
3.1 Summary of findings
Principle 1: Commitment to transparency Criterion 1.1 Growers and millers provide adequate information to relevant stakeholders on environmental, social and legal issues relevant to RSPO Criteria, in appropriate languages and forms to allow for effective participation in decision making. Indicators Findings and Objective Evidence Compliance 1.1.1 There shall be evidence that The PMU has established and implemented a Complied growers and millers provide adequate documented procedure ML 1A/L2 PR3 (0) dated Mar information on (environmental, social 2012 for providing adequate information on and/or legal) issues relevant to RSPO environmental, social and legal issues relevant to RSPO Criteria to relevant stakeholders for effective participation in decision Criteria to relevant stakeholders for effective participation making. in decision making. The procedure includes handling responses and requests Major Compliance from stakeholders. This was evident from records of visits, inspections and correspondence with stakeholders such as DOSH (JKKP), DOE (JAS) BOMBA, MPOB and Energy Commission (“Suruhanjaya Tenaga”). Date of public notification of the main assessment of the PMU was made on 04 Jun 2014. No request for information from stakeholders for this PMU. 1.1.2 Records of requests for The PMU maintained an updated list (ML 1A/L4 F31 (0)) information and responses shall be of internal stakeholders, external stakeholders, maintained. government departments/agencies, consultants, contractors, suppliers, transporters. Major / Minor - TBF A Stakeholders’ Consultation was carried out on 17/12/2013 at Felda Residence Sahabat. Stakeholders’ feedback (positive and negative) and management action plan recorded in the Stakeholders’ Booklet 2013.
Public notification was made to the stakeholders at least
one month prior to the consultation.
At the Palm Oil Mill, the survey questionnaire from stakeholder’ consultation were properly filed. However, there was no record of analysis or Minor NC# summary of the stakeholders’ feedback. OCL-01 A Minor Non-Conformance was raised. Criterion 1.2 Management documents are publicly available, except where this is prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes. Indicators Findings and Objective Evidence Compliance 1.2.1 Publicly available documents shall The organization’s policies declared that upon request, Complied include, but are not necessarily limited the following types of mandatory documents are available to: to the public:
• land titles/user rights, Major Compliance • occupational health and safety plan,
• Land titles/user rights (Criterion 2.2); • plans and impact assessments relating to environment and social impacts, • pollution prevention plans,
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• details of complaints & grievances, • negotiation procedures • continuous improvement plan • Public summary of certification assessment report. Copies of all land titles were available and have been maintained at the POM and Estates. HQ kept the original copies. • Occupational health and safety plans Occupational Safety and Health Plan 2014 documented Complied (Criterion 4.7); and implemented. Policy and HIRAC documented for both mill and estates. OSHA Plans include the establishment and implementation of CHRA, medical surveillance, training (BOMBA), Emergency Preparedness (ERP), Fire Drill, First Aid, PPE POM certified to OSHA 18001. CHRA conducted by an external consultant, OSHE Global Solutions with report dated 23/04/2012. Content of the report includes the following: • Fertilizers application, pesticides application and maintenance works. • CHRA Methodology • Collection of information • Evaluation of risks, hazard levels, exposure levels and control measures • Summary of recommendations • Plans and impact assessments Environmental Impact Assessment conducted by relating to environmental and social consultancy company, Aksenta and documented for the impacts whole of Sahabat Group. (Criteria 5.1, 6.1, 7.1 and 7.8); Approval of replanting for Gugusan Sahabat Plantation by Jabatan Perlindungan Alam Sekitar (DOE) Sabah was issued on 19/06/2102 for the proposed replanting at areas which include Felda Mercu Puspita Grouping (reference no: JPAS/PP/11/ 600 1/11/1/115 (31). Non- Environmental aspect and impact assessment conducted conformances for the POM and estates in the PMU on 28/11/2013 and (see NC in its action plan documented and implemented. C5.1.1 and Social Impact Assessment carried out on 17/12/2013. C6.1) Positive and negative impacts and action plan documented in the Stakeholders’ Booklet 2013. • HCV documentation (Criteria 5.2 and HCV Identification Survey conducted on the PMU estates Complied 7.3); by FASSB and report dated 27/12/2013. In addition, there was also an HCV Identification Survey conducted by consultancy company, Aksenta and documented for the whole of Sahabat Group. Interim Report dated 27/03/2014 stated that that is no significant HCV area in this PMU. • Pollution prevention and reduction Documented pollution prevention and reduction plans Complied plans (Criterion 5.6); include measures for pollution control, pesticides reduction, schedule wastes and domestic wastes disposal, reuse and recycling. • Details of complaints and grievances The PMU has established and implemented a Complied (Criterion 6.3); documented procedure ML 1A/L2 PR4 (0) dated Mar
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2012 for complaints and grievances. So far, the PMU did not receive any complaints from any external stakeholders. There is also a Complaints Box provided in the mill and estates. A Complaints and Grievances Form is for recording any complaints/grievances. A Complaint Book (“Buku Aduan”) is also maintained in the POM and estates. Entries in the Complaint Book were mainly requests for repair to employees’ quarters, facilities, road maintenance, etc. Actions taken also found to be recorded. • Negotiation procedures (Criterion 6.4); The PMU has established a documented negotiation Complied procedure ML 1A/L2 PR1 (0) dated Mar 2012. No case of land claims in the PMU. • Continual improvement plans The PMU has identified, documented and implemented Non- (Criterion 8.1); Continuous Improvement Plans over the period 2013 to conformances 2015 (ML 1A/L2 PR11 (0), dated Mar 2012). (see NC in C8.1.1) • Public summary of certification Public summary of certification assessment reports are Complied assessment report; available from the company upon request. • Human Rights Policy (Criterion 6.13). The Human Rights Policy has been documented and Complied signed by the President and CEO of Felda Global Ventures on 01/06/2014 and communicated to all levels of the workforce and operations. Copies of the policy found to be displayed at prominent locations in the POM and estates. Criterion 1.3 Growers and millers commit to ethical conduct in all business operations and transactions. Indicators Findings and Objective Evidence Compliance 1.3.1 There shall be a written policy The Policy of commitment to a Code of Ethical Conduct Complied committing to a code of ethical conduct and Integrity has been documented and signed by the and integrity in all operations and President and CEO of Felda Global Ventures on transactions, which shall be 01/06/2014 and communicated to all levels of the documented and communicated to all levels of the workforce and operations. workforce and operations. Copies of the policy found to be displayed at prominent locations in the POM and
estates. Major / Minor (TBF) There is a booklet containing details of Service Terms and Conditions and Code of Ethical Conduct and Integrity for Employees of Felda Group of Companies.
Principle 2: Compliance with applicable laws and regulations Criterion 2.1 There is compliance with all applicable local, national and ratified international laws and regulations. Indicators Findings and Objective Evidence Compliance 2.1.1 Evidence of compliance with A Legal Register covering the applicable local and Complied relevant legal requirements shall be international laws and regulations is available at the mill available. and estates. The Register includes a List of applicable Sabah Laws and Regulations. There is also a Compliance Major Compliance Checklist. The relevant legislations identified and listed were among others regarding safety and health, environmental management, pollution management,
Intertek RSPO Report: 11 15 Aug 2014
INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296 W)
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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 were evidences of compliance with the relevant laws, regulations, local and international laws at the POM and estates. There were no cases of any violation or actions imposed by relevant authorities. Statutory returns to relevant authorities found to be in compliance. Licenses and permits (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, etc.) were monitored for their expiry dates and found to be renewed and valid. Licenses, permits and certificates were displayed in the mill and estate offices. Steam engineers, boilermen and electricians were noted to be with valid certificates from relevant authorities (DOSH and Energy Commission). Valid certificates of fitness for boilers, sterilizers, air receivers, thermal deaerator, steam separator, vacuum oil dryer, etc. issued by DOSH for compliance with The Factories and Machinery Act 1967, Regulations 1970. Valid license for diesel generators issued by Energy Commission (“Suruhanjaya Tenaga”). The Mill is certified by SIRIM for its Quality, Environment and Safety & Health Management Systems. 2.1.2 A documented system, which The PMU has established and implemented a documented Complied includes written information on legal procedure ML 1A/L2 PR2 (0) dated Mar 2012 for requirements, shall be maintained. identifying, determining, reviewing and updating applicable legal and other requirements. Minor Compliance It included the listing of laws and regulations that were being monitored for changes and reference. 2.1.3 A mechanism for ensuring The procedure includes a monitoring mechanism of a compliance shall be implemented. regular check and evaluation for compliance against the applicable laws in the Legal Register.
Minor Compliance However, at Sahabat 07 Estate and Sahabat 46 Estate, Minor NC# there was no record of the completed checklist used OCL-02 for determining compliance. A Minor Non-Conformance was raised. 2.1.4 A system for tracking any changes Tracking of changes in the relevant laws are Complied in the law shall be implemented. communicated and received from HQ. Monitoring of changes to the applicable laws and regulations carried out Minor Compliance through periodical review in accordance with the documented procedure ML 1A/L2 PR2 (0) dated Mar 2012. Criterion 2.2 The right to use the land is demonstrated, and is not legitimately contested by local people who can demonstrate that they have legal, customary or user rights. Indicators Findings and Objective Evidence Compliance 2.2.1 Documents showing legal Copies of the land titles of the mill and estates were Complied ownership or lease, history of land maintained and found to be in proper order. tenure and the actual legal use of the Country Lease Title No. 115353314 Plan No. 11127827 50
Intertek RSPO Report: 11 15 Aug 2014
INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296 W)
Report No.: R9293/14 1 Felda Global Ventures Plantations (Malaysia) Sdn Bhd Page 17 of 69 KKS Mercu Puspita Grouping Main Assessment land shall be available. NH 31 for a total area of 78,400 ha for the whole Felda Sahabat Complex (see Appendix C 2 where the Mercu Major Compliance Puspita PMU is within the Sahabat Complex) with a lease period from 01/01/1981 to 31/12/2079 issued by the Sabah State Government to Felda for the cultivation of oil palm, cocoa, rubber, vegetables, fruit crops. Records are available to show that the land lease comply with legal requirements and does not infringe on any legal rights that require free, prior and informed consent (FPIC). The original copies are maintained by the Corporate Head office. The legal use of the land confirmed to be for cultivation of oil palm and agricultural use. 2.2.2 Legal boundaries shall be clearly It was verified that there has been no change to the stated demarcated and visibly maintained. land titles and designated use for cultivation of oil palms and agricultural use. Major Compliance Legal boundary markers were sighted and maintained along the perimeters of estate lands which were mapped with a 1 meter differential Global Positioning System (GPS). Locations of several boundary stones and pole markers were visited and verified to be within the boundary parameters of the estates. However, the maps provided by the PMU did not meet the “Transparency in Plantation Concession Boundaries” requirement as follows: • TITLE Major NC# • SCALE INDICATOR - Minimum scale 1:50,000 OCL-01 • ORIENTATION • CLEAR BORDER(s) – readable quality • LEGEND - Informative and readable legend • MAP LOCALITY (map is contextualized in a wider area with a smaller map) • PROJECTION is necessary to combine and overlay maps with minimum distortion. • GEO-REFERENCE (using map coordinates, such as latitude and longitude or Universal Transverse Mercator) is crucial because shows how any map relates to real world coordinates and allows for combining data from different sources. • SOURCE(s) of the map A Major Non-Conformance was raised. 2.2.3 Where there are or have been There has been no dispute on the land rights in the PMU. Complied disputes, additional proof of legal acquisition of title and evidence that fair As such, the process of fair compensation and FPIC is compensation has been made to currently not applied. previous owners and occupants shall be available, and that these have been accepted with free, prior and informed consent (FPIC).
Major / Minor (TBF) 2.2.4 There shall be an absence of There is a documented procedure ML 1A/L2 PR 1 (0) Complied significant land conflict, unless dated Mar 2012 for handling and response to land disputes requirements for acceptable conflict and customary rights as well as for calculation and resolution processes (see Criteria 6.3 distribution of compensation. and 6.4) are implemented and accepted by the parties involved.
Intertek RSPO Report: 11 15 Aug 2014
INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296 W)
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Major / Minor (TBF) 2.2.5 For any conflict or dispute over the No land disputes in the PMU. As such the process of Complied land, the extent of the disputed area participatory mapping is not applicable for verification of shall be mapped out in a participatory implementation. way with involvement of affected parties (including neighbouring communities where applicable).
Major / Minor (TBF) 2.2.6 To avoid escalation of conflict, No evidence that the palm oil operations have instigated Complied there shall be no evidence that palm oil violence in maintaining peace and order in their current and operations have instigated violence in planned operations. maintaining peace and order in their current and planned operations.
Major / Minor (TBF) Criterion 2.3 Use of the land for oil palm does not diminish the legal, customary or user rights of other users without their free, prior and informed consent. Indicators Findings and Objective Evidence Compliance 2.3.1 Maps of an appropriate scale The lands at the PMU are legally leased by Felda / PGVPM Complied showing the extent of recognised legal, from the Sabah State Government as evidenced by the customary or user rights (Criteria 2.2, land titles. 7.5 and 7.6) shall be developed through participatory mapping involving affected The lands are not encumbered by any customary lands or parties (including neighbouring user rights and therefore the process of participatory communities where applicable, and mapping is not required. relevant authorities). Major Compliance 2.3.2 Copies of negotiated agreements The lands were leased for 99 years by Felda / PGVPM Complied detailing the process of free, prior and from the Sabah State Government effective from Jan 1981 informed consent (FPIC) (Criteria 2.2, with the right to develop it for oil palm plantations or 7.5 and 7.6) shall be available and shall agriculture use. include: Records are available to show that the land lease comply with legal requirements and does not infringe on any legal a) Evidence that a plan has been developed through consultation and rights that require free, prior and informed consent (FPIC). 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
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2.3.3 All relevant information shall be No cases of land claims in this PMU. Not available in appropriate forms and As such this process is not applicable for verification. applicable languages, including assessments of impacts, proposed benefit sharing, and legal arrangements.
Major / Minor (TBF) 2.3.4 Evidence shall be available to This process is not applicable for verification. Not show that communities are represented applicable through institutions or representatives of their own choosing, including legal counsel. Major / Minor (TBF)
Principle 3: Commitment to long-term Economic & Financial Viability Criterion 3.1 There is an implemented management plan that aims to achieve long term economic and financial viability. Indicators Findings and Objective Evidence Compliance 3.1.1 A business or management plan Palm Oil Mill has documented a 5 years (2015 to 2019) Complied (minimum three years) shall be Management Plan with details of budget and costs of documented that includes, where operation that include the following: appropriate, a business case for scheme smallholders. (1) Mill extraction rates = OER and KER trends; (2) Cost of Production = Cost/MT CPO trends; Major Compliance (3) Forecast prices; (4) Financial indicators = Cost of labour, cost of facilities and equipment, cost of materials, etc.).
The estates have documented a 3 years (2014 to 2016) Management Plan with details of budget and costs of operation that include the following: (1) Replanting program planting materials are DxP seedling and cloned seedling; (2) Crop projection = FFB yield/ha trends; (3) Cost of Production = Cost/MT FFB trends; (4) Forecast prices; (5) Financial indicators = Cost of labour, cost of facilities, cost of materials, etc.). The budgets also include provisions for sustainability efforts and improvement programmes. Mill and Estate Managers monitor the operational performance against Key Performance Indications and targets (FFB yields, quality, productivity, pesticides usage, fertilizers usage, etc). There is evidence of monitoring of costs against budget. Performances are discussed in the monthly meetings held at the PMU and issues and actions needed are recorded for follow up in the next monthly meeting. The records of these meetings were available and verified during the audit. Monthly, quarterly, half yearly and yearly reports are submitted to the General Manager of Zone/Wilayah.
Intertek RSPO Report: 11 15 Aug 2014
INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296 W)
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3.1.2 An annual replanting programme Replanting Program for the period 2014 to 2018 Complied projected for a minimum of five years established for the estates in the PMU. (but longer where necessary to reflect the management of fragile soils, see Evidence of replanting program planned, reviewed and on Criterion 4.3), with yearly review, shall going implementation carried out. 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 Procedures POM has the following SOPs: Complied. (SOPs) for estates and mills shall be 1. Palm Oil Mill Operation Manual (08/04/2010 and documented. amendments) covering every station from the security gate for reception of FFB until the delivery of processed oil and Major Compliance POME management. 2. Laboratory Operation Manual (28/04/2011 and amendments). 3. Quality, Environmental and Occupational Health & Safety Manual and Procedures of Palm Oil Mill (24/02/210 and amendments). 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 (14/07/2010 and amendments). 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”. 5. Supply Chain Procedure Doc No. FGVPM RSPO SCCS Issue 1.0 Rev 2.0 (Effective 1 Dec 2012) SOP for Mill RSPO Supply Chain Certification System using the Mass Balance (MB) module.
The estates have the following SOPs: 1. Sustainable Oil Palm Estate Operation Manual issued by FELDA Agricultural Services Sdn Bhd (FASSB) on 01/06/2012. 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.
Intertek RSPO Report: 11 15 Aug 2014
INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296 W)
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4.1.2 A mechanism to check consistent The mechanism to check the implementation of SOPs was Complied. implementation of procedures shall be in place. available. Records had been kept by the staff concerned for each operation to monitor the procedure and progress of Minor Compliance work and these records would be checked by the Assistant Manager and the Manager regularly. These records had been verified to indicate satisfactory implementation during the visit. 4.1.3 Records of monitoring and any The records of monitoring and the actions taken had been Complied. actions taken shall be maintained and available, as appropriate. maintained for more than 12 months on the mill and estates concerned. These records had been verified to be Minor Compliance satisfactory. 4.1.4 The mill shall record the origins of The SOP for Supply Chain stated that the mill maintained Complied. all third party sourced Fresh Fruit Bunches (FFB). records on the origins of all third party sourced Fresh Fruit Bunches (FFB), and it had been verified to be satisfactory. 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 evidence that good GAP for minimization of soil erosion and maintenance of soil Complied. agriculture practices, as contained in Standard Operating Procedures fertility is maintained via the frond stacking and fertilizer (SOPs), are followed to manage soil application as per the recommendation provided from Felda fertility to a level that ensures optimal Agricultural Services Sdn. Bhd. and sustained yield, where possible. These had been verified through the records for fertiliser application and observation during field visit. Minor Compliance 4.2.2 Records of fertiliser inputs shall Records of fertilizer application had been verified to be in Complied. be maintained. order. Minor Compliance 4.2.3 There shall be evidence of Leaf and soil sampling and analysis had been carried out Complied. periodic tissue and soil sampling to monitor changes in nutrient status. annually to determine the nutrient levels for fertilizer recommendations that aimed to sustain the long term soil Minor Compliance fertility and nutrient efficiency. Records of the sampling and analysis had been verified to be satisfactory. 4.2.4 A nutrient recycling strategy shall EFB mulching had been carried out in mature area along be in place, and may include use of Empty Fruit Bunches (EFB), Palm Oil the inter row, and around the circle in the immature palms. Records had been verified to be satisfactory. Mill Effluent (POME), and palm residues after replanting. Land application of POME had been carried out on Sahabat
46 Estate over 218.43 ha. Minor Compliance However, on Sahabat 46 Estate, F 42, EFB application along the inter-rows of mature palm was up to 3 to 4 layers. This is contrary to the SOP which states that Minor NC # EFB should be spread in one layer along the inter-rows CFK-01 to prevent breeding of Rhinoceros beetle. A Minor Non-Compliance had been issued. Criteria 4.3 Practices minimise and control erosion and degradation of soils. Indicators Findings and Objective Evidence Compliance 4.3.1 Maps of any fragile/marginal soils Based on the soil maps and from field assessment, there Complied. shall be available. was no fragile/marginal soil on the estates. Major Compliance 4.3.2 A management strategy shall be On Sahabat 07 Estate, 2014 replant, there was no in place for plantings on slopes construction of planting terraces on land with slope between 9 and 25 degrees unless more than 6°. This is contrary to the SOP dated 1-6-2012 Minor NC # specified otherwise by the company’s
Intertek RSPO Report: 11 15 Aug 2014
INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296 W)
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SOP. which states that planting terraces must be constructed CFK-02
on land with slope of 6° to 25° during replanting. Minor Compliance A Minor Non-Compliance had been issued. There was no soil erosion noted during the visit. 4.3.3 A road maintenance programme Road maintenance programme had been verified on the Complied. shall be in place. estates. All the roads were in satisfactory condition.
Minor Compliance 4.3.4 Subsidence of peat soils shall be Based on the estate soil maps, there was no peat soil on the Complied. minimised and monitored. A documented water and ground cover estates as confirmed by auditor’s on site assessment management programme shall be in place.
Major Compliance 4.3.5 Drainability assessments where Based on the estate soil maps, there was no peat soil on the Complied. necessary will be conducted prior to replanting on peat to determine the estates as confirmed by auditor’s on site assessment. long term viability of the necessary drainage for oil palm growing.
Minor Compliance 4.3.6 A management strategy shall be Based on the estate soil maps and visit to the estates, there Complied. in place for other fragile and problem soils (e.g. podzols and acid sulphate were no other fragile and problematic soils in these estates. 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 water Documented water management plan and relevant records Complied. management plan shall be in place. had been verified to be in order for the palm oil mill, Sahabat Minor Compliance 07 and Sahabat 46 Estates. The plan includes steps such as soil stabilization, run off control and sediment trapping to mitigate the disturbed earth entering waterways 4.4.2 Protection of water courses and 1. On Sahabat 07 Estate, F 27 where the stream wetlands, including maintaining and was running across the field, there was no sign restoring appropriate riparian and other board indicating the buffer zone area, and no buffer zones (refer to national best marking of buffer zone boundaries. practice and national guidelines) shall be demonstrated. 2. On Sahabat 46 Estate, F 42 where the stream was running across the field, buffer zone
Major Compliance boundaries had been clearly demarcated. However, the width of buffer zone was insufficient at only 5 to 10 metres. Sabah state requirement as well as the SOP on buffer zone for stream <5 metres is 20 metres on either side of the stream. Major NC # CFK-01 These are contrary to the policy of the Company on river buffer zone dated 23-6-2011. A Major Non-Compliance had been issued.
There was no construction of bunds/ weirs/dams across the main rivers or waterways passing through the estates. 4.4.3 Appropriate treatment of mill In palm oil mill, water samples had been taken at monthly Complied. effluent to required levels and regular monitoring of discharge quality, shall be interval at the discharge point of effluent pond. BOD levels in compliance with national regulations had been in the range of 30 ppm in Jan 2013 to 80 ppm in (Criteria 2.1 and 5.6). Sep 2013 with an average of 50.5 ppm for the past 12
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months. The upper limit specified by D.O.E. Sabah is 100 Minor Compliance ppm. 4.4.4 Mill water use per tonne of Fresh Water usage in the mill averaged at 1.28 m3/tonne FFB. Complied. Fruit Bunches (FFB) (see Criterion 5.6) shall be monitored. The level of water usage was within the industrial norm.
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 Integrated Pest IPM Plan includes the planting of beneficial plants and Complied Management (IPM) plans shall be monitored. control of damage by rodents. Records on planting of beneficial plants had been verified Major Compliance on the estates to be in order. Pest infestation was minimal on the estates. Programme for planting of beneficial plants such as Turnera subulata, Cassia cobanensis, and Antigonon leptopus , and records on areas planted had been verified together with the respective maps to be satisfactory Two campaigns of rat baiting had been carried out to control the damage by rodents. 4.5.2 Training of those involved in IPM Training records for staff on IPM implementation were Complied. implementation shall be demonstrated. available and was verified on site to be satisfactory during Minor Compliance 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 pesticides used Manual Lestari 1A – Doc. No. ML 1A/L3 GP 1 (0) dated Mar Complied. shall be demonstrated. The use of selective products that are specific to 2012 Guidance Procedure for written justification in the use the target pest, weed or disease and of agrochemicals was reviewed and found acceptable. which have minimal effect on non The PMU has an Approved List of Pesticides registered target species shall be used where under the Pesticide Board of Malaysia. The types of available. chemicals used are as follows:
Major Compliance (1) Glyphosate isopropyl amine (41% a.i.) Ecomax (2) Metsulfuron methyl (20% a.i.) – Juru 20F (3) Paraquat dichloride (13% a.i.) Paraquat (4) Triclopyr butoxy ethyl ester (32.1% a.i.) Garlon (5) Glufosinate ammonium (13.5% a.i.) – Basta 15 4.6.2 Records of pesticides use On Sahabat 07 and Sahabat 46 Estates, the records of (including active ingredients used and pesticides use (including active ingredients used and their LD50, area treated, amount of their LD 50, amount of a.i. applied per ha and number of Major NC# active ingredients applied per ha and applications) had not been maintained. CFK-02 number of applications) shall be provided. A Major Non-Compliance had been issued.
Major Compliance 4.6.3 Any use of pesticides shall be It had been the policy of the estates to minimize the use of Complied. minimised as part of a plan, and in accordance with Integrated Pest pesticides in accordance with integrated pest management. Management (IPM) plans. There shall No prophylactic use of pesticides had been carried out at be no prophylactic use of pesticides, the estates for the period concerned. except in specific situations identified in industry’s Best Practice. Pesticide reduction programme is monitored on usage per hectare basis. So far, it has shown a slight decline. Major Compliance 4.6.4 Pesticides that are categorised as It is the policy of the group to reduce the use of Paraquat Complied. World Health Organisation Class 1A or
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1B, or that are listed by the Stockholm gradually and achieve zero usage by the end of 2015. or Rotterdam Conventions, and paraquat, are not used, except in The use of paraquat was verified for compliance to specific situations identified in Regulation 9 of the Pesticides Act 1974 as follows: industry’s Best Practice. The use of such pesticides shall be minimised and Paraquat found to be kept under lock and key. eliminated as part of a plan, and shall Form II for paraquat use found to be available and only be used in exceptional maintained with record of the hours worked. circumstances. Pesticides selected for First Aid Kit was issued to all Mandores and use are those officially registered under Supervisors as per requirements of the 4th the Pesticides Act 1974 (Act 149) and the relevant provision (Section 53A); Schedule of the Regulations. and in accordance with USECHH During field visit, portable signage boards noted to Regulations (2000). be displayed at areas of spraying activity as per requirements of Part II of the 5th Schedule of the Minor Compliance Regulations. A valid permit for hazardous waste storage was sighted. 4.6.5 Pesticides shall only be handled, All pesticide operators had been given training on the safe Complied. used or applied by persons who have handling and application of the pesticides in accordance completed the necessary training and with Regulation 22 (Use of standards of exposure to shall always be applied in accordance chemicals hazardous to health). with the product label. Appropriate safety and application equipment shall Appropriate safety and application equipment had been be provided and used. All precautions provided and used by the operators. attached to the products shall be All precautions attached to the products had been observed, properly observed, applied, and understood by workers (see Criterion applied, and understood by the workers. 4.7). Programme and training records had been verified to be satisfactory. Major Compliance The PMU has adequate facilities for mixing of pesticides and cleaning up after work. There are storage areas for PPE. 4.6.6 Storage of all pesticides shall be Storage of pesticides found to be in accordance with the Complied. according to recognised best practices. All pesticide containers shall be Occupational Safety and Health Laws and Regulations and properly disposed of and not used for local laws on pesticides control. other purposes (see Criterion 5.3). Used chemical containers were disposed by DOE Pesticides shall be stored in approved/registered hazardous waste contractor. accordance to the Occupational Safety and Material Safety Data Sheets (MSDS) are available in the Health Act 1994 (Act 514) and store. The MSDS are in English and Bahasa Malaysia Regulations and Orders, Pesticides Act (understood by the workers). 1974 (Act 149) and Regulations. First Aid Kit was issued to all Mandores and Supervisors as Major Compliance per requirements of the 4th Schedule of the Regulations. 4.6.7 Application of pesticides shall be Pesticides had been applied using the proven methods Complied. by proven methods that minimise risk (Best Management Practices) that minimize risk and and impacts. impacts. The pesticide operators found to understand the use of the right nozzle, spray drift, spray quality and run off. Minor Compliance 4.6.8 Pesticides shall be applied It’s not the policy of the company to carry out aerial Complied. aerially only where there is documented justification. Communities application of pesticides. This policy has been adhered. 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 continual training to Periodic training on pesticide handling had been carried out Complied. enhance knowledge and skills of for the pesticide operators. There are no contractor’s employees and associated workers used for pesticides spraying. smallholders on pesticide handling shall be demonstrated or made Information on the pesticides displayed on the notice board available. (see Criterion 4.8). and next to the pesticides in the store.
Minor Compliance
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4.6.10 Proper disposal of waste Empty pesticide containers had been used for mixing material, according to procedures that are fully understood by workers and chemical for spraying in the fields. Scheduled waste of palm oil mill had been disposed of through licensed managers shall be demonstrated (see Criterion 5.3). contractor (Petrojadi Sdn Bhd) approved by DOE. Records Minor Compliance of scheduled waste involved at the mill had been verified to be satisfactory.
On Sahabat 07 and Sahabat 46 Estates, vehicles had OBS # been serviced by outside workshops, but they were not CFK- 01 sure whether the disposal of the scheduled waste had been handled by a contractor approved by DOE Sabah. An observation had been issued. 4.6.11 Specific annual medical Annual medical surveillance for pesticide operators had surveillance for pesticide operators, and documented action to treat related been implemented as follows: health conditions, shall be Mercu Puspita POM had sent 7 workers for medical demonstrated. surveillance on 07 01 2014.
Sahabat 46 Estate had sent 17 of its workers for medical Major Compliance surveillance on 19 10 2013 For Sahabat 07 Estate, CHRA medical surveillance had been carried out on 26-12-2012 for 26 workers. The estate only made request to the doctor to carry out OBS # CHRA medical surveillance again for the workers on 07- CFK-02 07-2014, and to-date, it had yet to be carried out. An observation had been issued.
The medical surveillance reports were examined. The medical doctor stated in the report whether the individual worker have any medical disorders or symptoms of toxic reaction and thus not fit for work with pesticides. There were no such cases. 4.6.12 No work with pesticides shall be Verified from records, field inspections and interviews that Complied. undertaken by pregnant or breast feeding women. no pregnant or breast feeding woman had been offered work as pesticide operator. 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 and safety Occupational Safety and Health (OSH) Plan in compliance Complied plan shall cover the following: with OSH Act and Factory Machinery Act was documented 4.7.1 An occupational health and safety and implemented. policy shall be in place. An OSH Policy was clearly displayed at POM and in estates occupational health and safety plan office. Workers had demonstrated awareness towards covering all activities shall be occupational safety and health policy. documented and implemented, and its effectiveness monitored. Risk assessment had been carried out on all operations where health and safety is an issue (e.g. noise exposure, Major Compliance pesticides/chemicals exposure, accident, fire). There was a monitoring of noise levels in the POM. Procedures and actions documented and implemented on the issues concerned. Awareness and training programmes planned for year 2014 was consistently implemented. Evidence of training on safe working practices for workers involved in pesticides spray, use of fire extinguishers, awareness & understanding of MSDS/CSDS, First Aid boxes were sighted at both POM & estates. Precautions attached to products properly observed and
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applied to workers in all estates Appropriate PPE (safety boots, safety helmets, rubber boots, cartridge masks, safety goggles, gloves) verified to be provided. An audit for determining compliance with the minimum standards had been conducted on all types of PPE used. Ear mufflers and ear plugs were seen to be worn by workers exposed to high noise levels such as in the engine room, boiler station and sterilization unit of POM (> 85 db limit). Confirmed that annual audiometric test conducted for the listed mill workers. Records were maintained. The workers checked did not suffer significant hearing disabilities. Baseline audiogram and occupational and medical history records of workers maintained. Monitoring carried out by the Safety & Health Officer for any significant hearing loss. The employees exposed to high noise levels were interviewed. The workers are aware of the complaints process and mechanism available. Employees interviewed confirmed to be provided with training at least once a year by the qualified Safety & Health Officer and training records are available. Evaluation carried out on each training programme to determine its effectiveness. The training content was revised periodically. 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. Training for estate workers in First Aid was carried out in the Group estates and records maintained. First Aid equipment was available at POM, estates and at most worksites. Sample of First Aid box was checked and contents found to be complete and in usable order during field visit. The POM and estates have established their accident reporting KPI and incident monitoring implemented.
4.7.2 All operations where health and Risk assessment carried out on all operations where health Complied. safety is an issue shall be risk and safety is an issue and significant hazards determined assessed, and procedures and actions and documented. Actions implemented to mitigate the shall be documented and implemented hazards. to address the identified issues. All precautions attached to products shall All precautions attached to the products had been observed be properly observed and applied to and applied to the workers through MSDS. the workers.
Major Compliance 4.7.3 All workers involved in the Awareness and training programme had been carried out. operation shall be adequately trained in safe working practices (see Criterion All workers had been adequately trained in safe working 4.8). Adequate and appropriate practices. protective equipment shall be available Appropriate PPE had been provided to all workers at to all workers at the place of work to cover all potentially hazardous the place of work to cover all potentially hazardous Major NC # operations, such as pesticide operations except for Sahabat 46 Estate had yet to CFK-03 provide safety helmet to the FFB harvesters and application, machine operations, and land preparation, harvesting and, if it is loaders. used, burning. A Major Non-Compliance had been issued.
Major Compliance 4.7.4 The responsible person/persons The responsible person (usually the Mandore or Headman) Complied shall be identified. There shall be records of regular meetings between had been identified. the responsible person/s and workers. Concerns of all parties about health,
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Report No.: R9293/14 1 Felda Global Ventures Plantations (Malaysia) Sdn Bhd Page 27 of 69 KKS Mercu Puspita Grouping Main Assessment safety and welfare shall be discussed Records of regular meetings between the responsible at these meetings, and any issues person and workers to discuss about health and safety had raised shall be recorded. been verified to be satisfactory.
Major Compliance
4.7.5 Accident and emergency Accident and emergency procedures had been written and procedures shall exist and instructions shall be clearly understood by all briefed to staff, workers, contractors and visitors. workers. Accident procedures shall be Workers trained in First Aid were present in the mill and field available in the appropriate language of operations. the workforce. Assigned operatives First Aid Kits were available at most worksites, except trained in First Aid should be present in OBS # both field and other operations, and on Sahabat 07 Estate, First Aid Kits, though had been first aid equipment shall be available at provided to the Mandores, but they did not carry with CFK-03 worksites. Records of all accidents them to the sites of work, i.e. harvesting and pesticide shall be kept and periodically reviewed. spraying operations.
An observation had been issued. Minor Compliance
Records on all accidents had been verified to be maintained satisfactorily. Quarterly review on accident cases had been carried out during quarterly meeting of Environment, Safety, & Health (ESH) 4.7.6 All workers shall be provided with Medical care had been provided to all the workers. Complied. medical care, and covered by accident insurance. Local workers are covered by SOCSO, whereas foreign workers of the Group Estates are covered by Foreign Minor Compliance Workers Compensation Scheme with eTiQa Takaful Bhd. 4.7.7 Occupational injuries shall be Records on Lost Time Accident (LTA) metrics had been Complied recorded using Lost Time Accident (LTA) metrics. verified to be satisfactory.
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 programme shall A formal training programme on all aspects of RSPO Complied. be in place that covers all aspects of the RSPO Principles and Criteria, and Principles and Criteria has been established and that includes regular assessments of implemented. training needs and documentation of Training for various categories of operators, including all the programme. field and office staff, with regards to their duties and training needs had been reviewed and found acceptable. Major Compliance 4.8.2 Records of training for each Records of training for each employee were available in employee shall be maintained. POM. However, on Sahabat 07 and Sahabat 46 Estates, the record of training for each employee had yet to be Minor # Minor Compliance prepared. CFK-03 A Minor Non-Compliance had been issued.
Principle 5: Environmental responsibility and conservation of natural resources and biodiversity Criterion 5.1 Aspects of plantation and mill management, including replanting, that have environmental impacts are identified, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continual improvement. Indicators Findings and Objective Evidence Compliance 5.1.1 An environmental impact Environmental Impact Assessment conducted and
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Report No.: R9293/14 1 Felda Global Ventures Plantations (Malaysia) Sdn Bhd Page 28 of 69 KKS Mercu Puspita Grouping Main Assessment assessment (EIA) shall be documented. documented for the whole of Sahabat Group. Approval of replanting for Gugusan Sahabat Plantation by Major Compliance Jabatan Perlindungan Alam Sekitar (DOE) Sabah was issued on 19/06/2012 for the proposed replanting at areas which include Felda Mercu Puspita Grouping (reference no: JPAS/PP/11/ 600 1/11/1/115 (31).
Environmental aspect and impact assessment conducted for the POM and estates in the PMU on 28/11/2013 and its action plan documented and implemented. The assessment documents had included the identification of aspects from field activities that includes fertilizing, spraying, transportation of FFB, garbage disposal and road maintenance. The report includes action plans and recommendations in order to mitigate negative effects and promote positive ones such as sewage, landfills and conservation activities applicable to the PMU. Environmental aspect and impact assessment conducted by the Sahabat 07 Estate and Sahabat 46 Major NC# Estate on 28/11/2013 and its action plan documented OCL-02 and implemented. However, there was no adequate evidence of results on the action plan items. A Major Non-Conformance was raised. 5.1.2 Where the identification of There were no major changes to the identified impacts Complied impacts requires changes in current since the establishment of the documents above. practices, in order to mitigate negative effects, a timetable for change shall be developed and implemented within a comprehensive management plan. The management plan shall identify the responsible person/persons.
Major / Minor -TBF 5.1.3 This plan shall incorporate a Monitoring of the documented environmental Complied monitoring protocol, adaptive to improvement plans to be reviewed on an annual basis. operational changes, which shall be implemented to monitor the effectiveness of the mitigation measures. The plan shall be reviewed as a minimum every two years to reflect the results of monitoring and where there are operational changes that may have positive and negative environmental impacts. Major / Minor -TBF Criterion 5.2 The status of rare, threatened or endangered species and other High Conservation Value habitats, if any, that exist in the plantation or that could be affected by plantation or mill management, shall be identified and operations managed to best ensure that they are maintained and/or enhanced. Indicators Findings and Objective Evidence Compliance 5.2.1 Information shall be collated in a A HCV assessment on Mercu Puspita was conducted by Complied High Conservation Value (HCV) FASSB and report dated 27/12/2013. assessment that includes both the planted area itself and relevant wider In addition, a HCV assessment covering the whole Felda landscape level considerations (such Sahabat Complex in Lahad Datu was conducted by a as wildlife corridors). consultancy company, Aksenta (which is RSPO approved) and report dated 27/03/2014. The Aksenta Major Compliance HCV Assessment Report had detailed the guidelines and methodology used for the Mill and estates. The
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assessment has taken into consideration all aspect of environmentally sensitive areas such as ponds, streams and wildlife boundaries. There are no forest reserves neighboring the PMU. The PMU estates are surrounded by palm oil estates. Based on the assessment, there was no HCV area in the PMU. 5.2.2 Where rare, threatened or Regular patrols within the PMU were being carried out Complied endangered (RTE) species, or HCVs, and findings recorded by the respective estates to are present or are affected by monitor the conservation / buffer zone areas. plantation or mill operations, appropriate measures that are The occasional sighting of crocodiles was found to have expected to maintain and/or enhance been recorded. them shall be implemented through a Monitoring and control of any illegal hunting, fishing or management plan. collecting activities was also implemented.
Large signages that prohibit hunting, fishing and water Major Compliance polluting activities were verified on site and found to have been satisfactorily maintained. 5.2.3 There shall be a programme to The program to regularly educate the workforce and Complied regularly educate the workforce about community about the status of these RTE species are the status of these RTE species, and also established with ongoing consultation with the appropriate disciplinary measures shall relevant authorities at the PMU. be instigated in accordance with company rules and national law if any There is evidence of commitment to discourage any individual working for the company is illegal or inappropriate hunting, fishing or collecting found to capture, harm, collect or kill activities via the signages erected which prohibit such these species. activities. Major Compliance 5.2.4 Where a management plan has Management plans were established and monitoring Complied been created there shall be ongoing outcomes were reviewed by the Estate Managers. There monitoring: are no HCV area or reported RTE in the PMU, which has • The status of HCV and RTE species been verified during on site assessment to be that are affected by plantation or mill satisfactory. operations shall be documented and reported; Ongoing monitoring of the overall management plan on the status of any HCV and / or RTE species at the PMU • Outcomes of monitoring shall be fed back into the management plan. is collated and reviewed by the HQ Sustainability team. Major / Minor -TBF 5.2.5 Where HCV set asides with Verified that HCV set aside is not applicable for this PMU. Not applicable existing rights of local communities have been identified, there shall be evidence of a negotiated agreement that optimally safeguards both the HCVs and these rights. Major / Minor -TBF Criterion 5.3 Waste is reduced, recycled, re used and disposed of in an environmentally and socially responsible manner. Indicators Findings and Objective Evidence Compliance 5.3.1 All waste products and sources of All waste products and sources of pollution at the POM Complied pollution shall be identified and and estates were identified and documented. documented. Waste products include domestic waste, scheduled waste, clinical waste and recyclable wastes such as Major Compliance paper, metal, plastic and glass. Mill wastes and polluting materials identified were EFB, POME, boiler ashes. Scheduled waste identified included spent hydraulic oil (SW 305), spent lubricant oil (SW 306), used chemical containers/drums (SW 409), used filters (SW 410), clinical waste (SW 404) and used batteries (SW 102).
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5.3.2 All chemicals and their containers The mill and estates have a proper and secured Complied shall be disposed of responsibly. Scheduled Waste Store for storing scheduled waste until time of disposal. Disposal of scheduled waste by a DOE Major / Minor -TBF licensed waste disposal contractor, Petrojadi Sdn Bhd. The disposal of used chemicals and containers and waste were carried out according to the schedule on waste management as planned. 5.3.3 A waste management and The PMU has implemented a waste management and disposal plan to avoid or reduce disposal plan to avoid or reduce pollution. pollution shall be documented and implemented. The solid waste management and disposal plan using landfills was available at the mill and estates.
The designated landfill areas were verified to be at least Major / Minor -TBF more than 50 m away from any streams / water sources thus minimizing the risk of contamination of water sources. Appropriate secondary containment for the diesel skid tanks, chemical and scheduled waste storage areas was verified to be maintained.
Recycling of crop residues / biomass, i.e. EFB, PK shell and POME had been implemented. EFB shredded at the mill and delivered to the Sahabat Independent Power Producer for electricity generation. Some EFB applied in the field. Palm fiber and PK shell used as renewable fuel.
A biogas plant for renewal energy from POME is under construction at the POM and is expected to be operational by end 2014. Recycling bins of different colour codes for specific recycle waste were available in the POM and estates and were used for solid general waste segregation and
recycling.
However, it was found that the recycle bin for aluminium cans at the Palm Oil Mill and Sahabat 46 Obs # Estate contained plastic bottles and other materials. OCL-01 An observation was raised. 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 efficiency of Usage of fuel oil and diesel were monitored monthly. Complied the use of fossil fuels and to optimise At the POM, palm fiber and PK shells were used as renewable energy shall be in place and renewable fuels to fossil fuels on a 70:30 ratio basis. monitored. Monthly records of energy consumption of non renewable fossil fuels (fuel oil and diesel) and renewable fuel (palm Minor Compliance fiber and PK shell) and the production volume (metric tone) of FFB processed and CPO produced were monitored. The data showed the renewable fuels to fossil fuels ratio ranging from 66.4% to 73.3% for the period Jan to Jun 2014. At the estates, diesel consumption and the FFB harvested (metric ton FFB) was monitored on a monthly basis. 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
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5.5.1 There shall be no land The Group Policy of ‘Zero Open Burning’ is enforced Complied preparation by burning, other than in since July 2011. The estates in the PMU had adhered to specific situations as identified in the this policy for any replanting. Field inspections made ‘Guidelines for the Implementation of indicated no evidence of open burning. the ASEAN Policy on Zero Burning’ 2003, or comparable guidelines in other regions. Major Compliance 5.5.2 Where fire has been used for The PMU has adhered to the ‘zero burning ‘policy for Complied preparing land for replanting, there shall replanting at the estates. Replanted areas visited be evidence of prior approval of the showed no evidence of fire being used for land controlled burning as specified in preparation. ‘Guidelines for the Implementation of the ASEAN Policy on Zero Burning’ There was also no evidence of any burning of domestic 2003, or comparable guidelines in other waste at the housing line sites and at the sanitary landfills regions. of the estates during on site field assessment. Minor Compliance Criterion 5.6 Plans to reduce pollution and emissions, including greenhouse gases, are developed, implemented and monitored. Indicators Findings and Objective Evidence Compliance 5.6.1 An assessment of all polluting The PMU had carried out an environmental impact Complied activities shall be conducted, assessment and identified the potential polluting including gaseous emissions; activities at the POM and estates that include discharge particulate/soot emissions and to waterways, gaseous emissions to air and effluent (see Criterion 4.4). contamination on land.
Monitoring of POM boiler dust particulates and gas Major Compliance emissions is being done online using the Continuous Emissions Monitoring System (CEMS) and emissions were verified to be within the permissible limits of DOE. Boilers are equipped with smoke density monitors and recorder control equipment and safety latches to doors. The Ringlemann Smoke Observation Chart is maintained as a backup for the CEMS monitoring by DOE. In POME treatment, water discharge and land application of POME were monitored and found to adhere to DOE regulations. The quality of effluent discharge verified to be in compliance against the DOE specified requirements. 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 90dB. 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 and Significant pollutants and greenhouse gas (GHG) New requirement greenhouse gas (GHG) emissions emissions were identified as POME, fossil fuels (diesel, of RSPO P&C shall be identified, and plans to fuel) and fertilizer. Their usage have been recorded and (2013) Follow up reduce or minimise them documented at the PMU. will be done at implemented. Surveillance PMU has just compiled the data for GHG emissions. Assessment. Major / Minor -TBF Plans to reduce or minimise GHG emissions are yet to
be established and implemented.
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5.6.3 A monitoring system shall be in Monitoring and reporting of the significant pollutants to Complied place, with regular reporting on water, gaseous emissions to air and contamination on progress for these significant land are in place. pollutants and emissions from estate and mill operations, using Tools and systems used include the DOE online CEMS appropriate tools. monitoring for air emissions, water quality and Scheduled Waste disposal were adhering to DOE Major / Minor –TBF requirements. Water samples were regularly taken every three months at the discharge points, upstream and downstream of stream. Tests carried out at the Felda Analytical Laboratory (Sabah) of FASSB. Test reports were maintained and results verified to meet the permissible DOE regulatory limits for pH, BOD, suspended solids and ammonia content. The discharged water is totally used for land application into the estate. Scheduled waste found to be disposed in accordance with legal requirements.
Principle 6: Responsible consideration of employees and of individuals and communities affected by growers and millers Criteria 6.1 Aspects of plantation and mill management that have social impacts, including replanting, are identified in a participatory way, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continual improvement. Indicators Findings and Objective Evidence Compliance 6.1.1 A social impact assessment The Social Impact Assessment (SIA) carried out on 17 Complied (SIA) including records of meetings shall be documented. Dec 2013. Management Action Plan and Continuous Improvement Plan have been documented and Major Compliance implemented (hereafter to be referred collectively as the “social documents”) and were reviewed by the respective estate(s) audited (Sahabat 07 and Sahabat 46 estates) and the palm oil mill. A Stakeholders’ Consultation was carried out on 17 Dec 2013 at Felda Residence Sahabat with the use of standard survey form “Impak Sosial dan Mitigasi P6” for the Wilayah Sahabat (Mill and the estates). Survey forms were collected and kept as records. Stakeholders’ feedback (positive and negative impacts) and management action plan recorded in the Stakeholders’ Booklet 2013 6.1.2 There shall be evidence that the The participation of both internal and external Complied assessment has been done with the participation of affected parties. stakeholders (including local Governmental organizations) which was evident with the list of Major Compliance participants recorded. Minutes of meetings as appended to the SIA Report were maintained as records. List of stakeholders were verified and included government bodies, group associated stakeholders, neighboring estates, smallholders, management staff and workers (including representative of foreign workers (Indonesians), contractors/suppliers and health clinic staff. 6.1.3 Plans for avoidance or The social documents had plans for avoidance or mitigation of negative impacts and mitigation of negative impacts and promotion of the promotion of the positive ones, and positive ones such as the continued support for the monitoring of impacts identified, shall Cahaya Bapak which runs and manages the Yayasan be developed in consultation with the
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Report No.: R9293/14 1 Felda Global Ventures Plantations (Malaysia) Sdn Bhd Page 33 of 69 KKS Mercu Puspita Grouping Main Assessment affected parties, documented and Peduli schools for foreign workers’ children. timetabled, including responsibilities for implementation. The management of estate and mill has monitored the impacts identified, developed in consultation with the affected parties’ i.e. foreign workers. Major / Minor -TBF Sighted records of appointed teams headed by estate managers assisted by assistant managers. The roles and responsibilities of these appointed officials were defined. Social Impact Assessment was carried out for the Sahabat 07 and Sahabat 46 Estate and its plan was Minor NC # documented and implemented. However, there was no adequate evidence of results (“bukti MNM-01 pelaksanaan”) on the action plan items. A Minor Non-Conformance was raised. 6.1.4 The plans shall be reviewed as The PMU has planned to review the SIA plans every a minimum once every two years and updated as necessary, in those cases year for follow up and updating to current practices. The review is to include the participation of affected where the review has concluded that changes should be made to current parties. practices. There shall be evidence Social Impact Assessment for Sahabat 46 was that the review includes the carried out on 17/04/2012. New SIA could be carried participation of affected parties. out as soon as possible. SIA could be carried out Obs # once every two years. Minor Compliance MNM-01 An observation was raised.
6.1.5 Particular attention shall be paid Positive impacts such as increased work opportunities, Complied to the impacts of smallholder schemes (where the plantation increased income and improved living standards are includes such a scheme). identified.
Minor Compliance Criteria 6.2 There are open and transparent methods for communication and consultation between growers and/or millers, local communities and other affected or interested parties. Indicators Findings and Objective Evidence Compliance 6.2.1 Consultation and Documented policies and procedures are available for communication procedures shall be documented. internal and external communication and consultation. Estate managers are the nominated persons Major Compliance responsible for communication with the stakeholders.
The organization has a list of stakeholders including local authorities, government departments, suppliers and contractors. Interviews with representatives of Gender Committee, workers’ association representatives, internal workers, scheme settlers, workers’ dependents revealed open and transparent communication and consultation. These interviews confirmed the effectiveness of PMU consultation and communication processes with the internal and external stakeholders.
Stakeholder meeting for Wilayah Sahabat has been conducted. However, Internal and external stakeholder meeting could be carried out for each Obs # estate. MNM-02 An observation was raised 6.2.2 A management official Appointment records sighted show evidence on the Complied responsible for these issues shall be nominated. existence of a management official for these issues. Interviews with mill and estate managers verified the Minor Compliance understanding of their roles and responsibilities.
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6.2.3 A list of stakeholders, records of List of stakeholders are sighted in “SIA Stakeholders Complied all communication, including confirmation of receipt and that Consultation (Internal & External)” file. efforts are made to ensure Noted that there are open and transparent methods for understanding by affected parties, communication and consultation which has taken into and records of actions taken in consideration the local conditions including foreign response to input from stakeholders, workers and job opportunities for local people. Verified shall be maintained. that consultations with various stakeholders had been
Minor Compliance held and recorded in the minutes of meeting that include actions taken in response to input from stakeholders. Criteria 6.3 There is a mutually agreed and documented system for dealing with complaints and grievances, which is implemented and accepted by all affected parties. Indicators Findings and Objective Evidence Compliance 6.3.1 The system, open to all affected The PMU has an established and documented system Complied parties, shall resolve disputes in an effective, timely and appropriate for dealing with complaints and grievances and it was manner, ensuring anonymity of well implemented. complainants and whistleblowers, So far there were no cases reported in year 2013 to where requested. year 2014. Respect of anonymity and protection of complainants is provided through “Polisi Pemberian Major Compliance Maklumat (Whistle Blowing)” dated 1 Jul 2013 So far no complaints recorded in the ‘Complaints and Grievances Book’ in all estates. Interviews with staff and workers and their representatives revealed knowledge and understanding of the complaints, dispute and resolution mechanism. The mechanism provides for open and consensual agreements with relevant affected parties. 6.3.2 Documentation of both the Complaints and grievances are handled by respective Complied process by which a dispute was resolved and the outcome shall be Estate Managers. A record book and complaint form is available. used to forward a complaint or make a request for maintenance. Major Compliance Mechanisms are appropriately established and implemented. Records of meeting and any resolutions or outcomes are maintained through Minutes or in Complaints Log. Criteria 6.4 Any negotiations concerning compensation for loss of legal, customary or user rights are dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions. Indicators Findings and Objective Evidence Compliance 6.4.1 A procedure for identifying The PMU has a documented procedure for identifying Complied legal, customary or user rights, and a procedure for identifying people legal and customary rights and procedure for identifying entitled to compensation, shall be in people entitled to compensation have been maintained. place. There were no borders which were adjacent to any villages or native land in the PMU. Therefore, no cases Major Compliance requiring any negotiation or compensation pertaining to these criteria. There have been no changes in this status as at the period of verification on site. 6.4.2 A procedure for calculating and There is a procedure for calculating and distributing Complied distributing fair compensation (monetary or otherwise) shall be compensation. To date, there has been no dispute by established and implemented, any parties relating to legal, customary or user rights at monitored and evaluated in a the PMU. participatory way, and corrective actions taken as a result of this
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Report No.: R9293/14 1 Felda Global Ventures Plantations (Malaysia) Sdn Bhd Page 35 of 69 KKS Mercu Puspita Grouping Main Assessment 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 outcome of So far, there has been no dispute by any parties relating Complied any negotiated agreements and compensation claims shall be to legal, customary or user rights at the PMU. documented, with evidence of the Therefore the process and outcome of compensation participation of affected parties, and could not be observed. made publicly available.
Major Compliance Criteria 6.5 Pay and conditions for employees and for contract workers always meet at least legal or industry minimum standards and are sufficient to provide decent living wages. Indicators Findings and Objective Evidence Compliance 6.5.1 Documentation of pay and Labour Policy has been documented and publicly Complied conditions shall be available. available. It addresses foreign workers, who mostly Major Compliance come from Indonesia and Philippines. Employment conditions meet legal requirement. Employment agreements, stating all statutory fringe benefits and eligible incentives are available. Stated conditions in the employment agreement includes working hours, overtime, leave and medical benefits, maternity leave for women, insurance coverage, deductions, resignation notice period, company rules, etc., which are in compliance with applicable legal requirements. The payment slip was easy to understand. Foreign workers are legally employed directly by Estates and work permits were available and verified to be satisfactory. The PMU has implemented the Minimum Wage Order 2012 consistent with FELDA policy, for all its employees as per agreement between Felda Palm Industries and Kesatuan Pekerja Pekerja Felda Palm Industries Sdn. Bhd. Valid from 1 Jan 2013 until 31 Dec 2015. Offer letter, employment agreements with applicable terms and conditions and accompanying appendices conditions are documented in Bahasa Malaysia and have been explained to and understood by the employees. The PMU also provides free housing and piped water supply, free electricity, medical benefits, mosques and welfare amenities that in overall constitutes a decent living for the employees. The documented pay and conditions are verified to be satisfactorily implemented. Pay and conditions documented in the employment contract and found to be in accordance with the Sabah Labor Ordinance 2005 6.5.2 Labour laws, union agreements Documented employment contract verified for migrant Complied or direct contracts of employment detailing payments and conditions of workers had covered all issue such as working hours, employment (e.g. working hours, deductions, overtime, sickness, holiday entitlement,
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Report No.: R9293/14 1 Felda Global Ventures Plantations (Malaysia) Sdn Bhd Page 36 of 69 KKS Mercu Puspita Grouping Main Assessment deductions, overtime, sickness, maternity leave, and reasons for dismissal, period of holiday entitlement, maternity leave, notice made available in Bahasa Malaysia which is reasons for dismissal, period of understood by the workers (local and foreign workers) notice, etc.) shall be available in the languages understood by the workers or explained carefully to them by a management official.
Major Compliance 6.5.3 Growers and millers shall The estate management was noted to have complied Complied provide adequate housing, water supplies, medical, educational and with Workers’ Minimum Standard of Housing and welfare amenities to national Amenities Act 1990 (Act 446). standards or above, in accordance Site visits to workers’ homes and interviews with their with Workers’ Minimum Standard of dependents revealed their general satisfaction with their Housing and Amenities Act 1990 (Act housing conditions and amenities. 446) or above, where no such public facilities are available or accessible (not applicable to smallholders). Housing, electricity and water supply
Minor Compliance Workers are given a small patch of land to grow vegetables/fruit trees and keep poultry around their houses in order to reduce the cost of living. The workers staying in the estate are provided with free electricity supply from 4.00 am to 6.00 am and from 6.00 pm to 10.00 pm. Executives and above are supplied with 24 hour electricity supply. Clean water supply comes from treated pond water which is supplied to the workers quarters twice a week to fill the two water tanks located in each house. Weekly line site inspections are also carried out, i.e. first inspection covers the whole workers quarters and second inspection covers only the crèches. In all the estates, rubbish collection is scheduled at least twice a week.
Schools The local staff and workers’ children between 5 to 6 years old attend Tadika Kemas kindergartens which are provided free of charge. Onsite visit to a kindergarten showed cheerful children learning in a safe environment. The migrant workers’ children had received free education in Sekolah Yayasan Peduli schools in the PMU organized by Indonesian NGO’s named Cahaya Bapak.
Sundry shops The availability of sundry shops within the estates which helped the staff and workers 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. Crèche ( Rumah Asuhan Kanak kanak) There is no need for crèche at the estates as most of the younger children are being cared for by the extended family members.
Medical clinics There were few private clinics and government clinics
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located near to the Estates. Basic medical treatment of minor ailment and first aids such as toilet and suturing (T&S) of small laceration wounds are provided. 6.5.4 Growers and millers shall make Food for the workers provided through sundry shops in Complied demonstrable efforts to monitor and where able, improve workers’ access each of the PMU estates verified to be adequate and to adequate, sufficient and affordable affordable. food.
Minor Compliance Criteria 6.6 The employer respects the rights of all personnel to form and join trade unions of their choice and to bargain collectively. Where the right to freedom of association and collective bargaining are restricted under law, the employer facilitates parallel means of independent and free association and bargaining for all such personnel. Indicators Findings and Objective Evidence Compliance 6.6.1 A published statement in local The published statements of policy dated 1st July 2013 Complied languages recognising freedom of association shall be available. which recognizes the employee’s freedom of association, was found to be available and widely Major Compliance displayed in all notice boards of the PMU.
Kesatuan Pekerja Pekerja Felda Plantations. is a platform through which the members negotiate collectively with the management of FELDA. 6.6.2 Minutes of meetings with main The estate management had formed the JCC Complied trade unions or workers representatives shall be documented. “Jawatankuasa Penyelaras KKP Wilayah Sahabat” as a mechanism to cater to the collective bargaining and Minor Compliance needs of the workers. The JCC meetings are held every 3 months. Records of meetings were documented, kept and available. Criteria 6.7 Children are not employed or exploited. Indicators Findings and Objective Evidence Compliance 6.7.1 There shall be documentary The PMU has a policy of not employing child labor, i.e. Complied evidence that minimum age requirements are met. persons below 18 years old in accordance with Employment Act 265 as evidenced in “ Polisi Pekerja Major Compliance Kanak kanak” dated 1st July 2013. This policy is displayed at strategic public places.
The birth date in the Identification card and birth certificate of a new employee is used as the verification for age. The implementation was verified through checks on Senarai Maklumat Petugas Ladang.
Interviews with workers in the estates and at the Mill confirmed implementation of the stated policy.
Criteria 6.8 Any form of discrimination based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation, or age, is prohibited. Indicators Findings and Objective Evidence Compliance 6.8.1 A publicly available equal The PMU has a publicly displayed documented policy Complied opportunities policy including identification of relevant/affected on equal opportunities “Polisi Kesetaraan Peluang” groups in the local environment shall which is dated 1 Jul 2013. The policy stressed on non be documented. discrimination based on race, caste, nationality, religion, gender, sexual orientation, disability/handicap, and Major Compliance union/political affiliations. However, positive
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discrimination for the benefit of certain society groups may be allowed after consultation. 6.8.2 Evidence shall be provided that There is a documented policy on foreign workers “Polisi Complied employees and groups including local communities, women, and migrant Pengambilan Pekerja Asing” dated 1 Jul 2013. It is workers have not been discriminated publicly displayed along with other policies at strategic against. places. Compliance to relevant regulatory requirements such as Major Compliance Employment Act 1955, Sabah Labor Ordinance 2005, immigration Act 1959/63 and Workmen’s Compensation Act 1952 are observed when recruiting workers from Indonesia and Philippines. The employment of foreign workers was implemented without affecting the opportunities for local communities. Local workers are covered under SOCSO scheme and the migrant workers are covered under Foreign Workers Compensation scheme (FWCS). Interviews with migrant workers’ dependents 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, and transportation of school children. They are aware of the “aduan” mechanism by which they can make any complain or request to the management. Interview with a women migrant workers revealed that she is a gender representative and there has been no known cases of any sexual harassment or violence against women at the field or at the housing areas. 6.8.3 It shall be demonstrated that Depending on the nature of work positions, The PMU Complied recruitment selection, hiring and promotion where relevant are based management takes into considerations the needs for on skills, capabilities, qualities, and technical qualifications/experience and related skills in medical fitness necessary for the jobs recruitment selection, hiring and promotion exercises. available. It was verified that the promotions to higher position at the estates and POM were based on evaluations which Minor Compliance considered the skill, capabilities, qualities and medical
fitness of the employees. A verification of job advertisement dated 1 Mar 2013 and related records dated Sep 2013 evidenced that a recent employment of an administration assistant and was carried out in a non discriminative manner. The necessary qualifications and conditions were clearly stated in the job advertisement. Terms and conditions of work were spelled out in the offer letter as well. Criteria 6.9 There is no harassment or abuse in the work place, and reproductive rights are protected. Indicators Findings and Objective Evidence Compliance 6.9.1 A policy to prevent sexual and A documented policy to prevent sexual harassment and Complied all other forms of harassment and violence shall be implemented and violence “Polisi Gangguan Seksual dan Keganasan” is communicated to all levels of the available and publicly displayed. Interviews with staff workforce. and workers reflected communication on harassment issue, general understanding of sexual harassment in Major Compliance the workplace and the mechanism to report an alleged sexual harassment or violence. 6.9.2 A policy to protect the The PMU’s commitment to protect the reproductive reproductive rights of all, especially of women, shall be implemented and rights and rights to have a family of the workers especially women is evidently stated in the policy to communicated to all levels of the workforce. prevent sexual harassment and violence “Polisi
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Gangguan Seksual dan Keganasan” Major Compliance Local female staff is fully aware that they are entitled for two months paid maternity leave. Records evidenced that every women field worker who is handling agrochemicals is issued a reminder letter
informing them of their responsibility to communicate with the management as soon as pregnancy is confirmed or breastfeeding is planned. The reminder letter states that alternative job that does not require agrochemical handling will be offered.
The PMU confirmed that there is no pregnant or breastfeeding woman worker among all the women agrochemical handlers now. Appointment letter for gender committee members Obs # could be made available for Sahabat 07 and Sahabat MNM-03 46 estates. 6.9.3 A specific grievance Complaint and grievance procedures “Prosedur mechanism which respects anonymity and protects complainants Menangani Aduan dan Rungutan dan Polisi Pemberian Maklumat / whistle blowing” are available to manage where requested shall be established, implemented, and grievances and complaints from internal and external communicated to all levels of the stakeholders. workforce.
Minor Compliance Onsite audits verified that the complaint and grievance procedure and whistle blowing procedure are displayed outside staff offices, muster call stations and at the public areas.
Management confirmed that there has been no report of sexual harassment in the PMU so far.
There was no specific programs/mechanism being planned and no evidence of the implementation for
particular issues faced by women such as policy being communicated, training, awareness on the Minor NC # domestic violence and sexual harassment, etc. for MNM-02 Sahabat 07 Estate and Sahabat 46 Estate. A Minor Non-Conformance was raised. Criteria 6.10 Growers and millers deal fairly and transparently with smallholders and other local businesses. Indicators Findings and Objective Evidence Compliance 6.10.1 Current and past prices paid Onsite audit verified that the current and past prices Complied for Fresh Fruit Bunches (FFB) shall be publicly available. paid for FFB pricing were displayed at the Mill and Estate offices. Minor Compliance 6.10.2 Evidence shall be available FFB prices were made available via FELDA POM Complied that growers/millers have explained FFB pricing, and pricing mechanisms office’s external Notice Board and mill office records. for FFB and inputs/services shall be The POM has treated out growers and other local documented (where these are under business fairly. Pricing mechanism for FFB is fair and the control of the mill or plantation). transparent and was set based on 20 % OER and FFB grading as per MPOB approved / licensed graders and Major Compliance based MPOB specification. Current and past prices paid for FFB were publicly available and verified through interviews. Mechanisms are available to the public upon request.
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6.10.3 Evidence shall be available Stakeholder interviews conducted during this Complied that all parties understand the contractual agreements they enter assessment with suppliers, contractors, and relevant into, and that contracts are fair, legal parties including local and foreign workers confirmed and transparent. that understand the contractual agreements (such as terms and payment) they enter into with the PMU. They Minor Compliance also consider the business transactions as fair and transparent.
6.10.4 Agreed payments shall be Agreed payments are made promptly within the 7th day Complied made in a timely manner. of the following month. Through interviews made, there Minor Compliance is no evidence to suggest of any unfair business practices with the local businesses.
Criteria 6.11 Growers and millers contribute to local sustainable development where appropriate. Indicators Findings and Objective Evidence Compliance 6.11.1 Contributions to local The PMU’s contribution towards local communities had Complied development that are based on the results of consultation with local been evidenced in several social areas and verified communities shall be demonstrated. during on site visit as follows: • Provide free water and electricity supplies to all Minor Compliance kindergartens and schools in the estates • Provide maintenance of public buildings whenever requested. • Provided land for the building of government primary and secondary schools • A plan to build a badminton court as requested by the community. • Provided new housing units for employees 6.11.2 Where there are scheme It was verified that there were no smallholder scheme NA smallholders, there shall be evidence that efforts and/or resources have programs at the Mercu Puspita PMU estates. been allocated to improve smallholder productivity.
Minor Compliance
Criteria 6.12 No forms of forced or trafficked labour are used. Indicators Findings and Objective Evidence Compliance 6.12.1 There shall be evidence that Audit of employment records such as work permits in an Complied no forms of forced or trafficked labour are used. estate office confirmed that all 330 migrant workers were recruited through legal means and according to Major Compliance the regulatory requirements. Interviews with migrant workers and their dependents in the housing are confirmed that there were no forced or trafficked labors. 6.12.2 Where applicable, it shall be There was no evidence of contract substitution and this Complied demonstrated that no contract substitution has occurred. was confirmed from interviews with workers and relevant stakeholders. Minor Compliance 6.12.3 Where temporary or foreign The special policy on recruitment of foreign workers Complied workers are employed, a special labour policy and procedures shall be “Polisi Pengambilan Pekerja Asing” and equal established and implemented. opportunities “Polisi Kesetaraan Peluang” are established and the implementations are verified to be
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Major Compliance satisfactory. Review on employment contracts of foreign workers also confirmed that the policies, including minimum wages have also been duly implemented. Criteria 6.13 Growers and millers respect human rights. Indicators Findings and Objective Evidence Compliance 6.13.1 A policy to respect human The Human Rights Policy has not yet been documented New requirement of rights shall be documented and communicated to all levels of the and communicated to all levels of the workforce and RSPO P&C (2013) workforce and operations (see operations. Follow up action Criteria 1.2 and 2.1). at next surveillance assessment, Major Compliance 6.13.2 As long as children of See 6.5.3 (if applicable) Complied plantation workers of 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
KKS Mercu Puspita PMU has documented procedures for this development but to date has not carried any new plantings after Nov 2005. Therefore, the requirements of Principle 7 are not applicable during this assessment.
Principle 8: Commitment to continuous improvement in key areas of activity Criterion 8.1 Growers and millers regularly monitor and review their activities, and develop and implement action plans that allow demonstrable continual improvement in key operations. Indicators Findings and Objective Evidence Compliance 8.1.1 The action plan for continual The POM has identified and implemented the following improvement shall be implemented, Continual Improvement Action Plans for the period 2013 based on a consideration of the main to 2015 as required: social and environmental impacts and 1. Bio polishing Plant for reduction of BOD, opportunities of the grower/mill, and shall include a range of Indicators 2. Scheduled waste disposal, covered by these Principles and 3. Recycling and reduction of waste (recycle scrap iron, Criteria. palm fiber and shell as renewable fuel, shredded EFB to
power plant) Major / Minor -TBF 4. Control and prevention of pollution (CEMS for stack
emission, EFB press, incinerator), As a minimum, these shall include, but are not necessarily be limited to: 5. Contribution of cash and equipment to schools, 6. Religious seminars at villages, • Reduction in use of 7. Repair and repainting of workers’ houses/quarters pesticides(Criterion 4.6); and playgrounds,
8. Family sports day, • Environmental impacts (Criteria 4.3, 9. Free tuition to school children. 5.1 and 5.2); Evidence of results was available for the above
continuous improvement action plans. • Waste reduction (Criterion 5.3);
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• Pollution and greenhouse gas (GHG) The Sahabat 07 Estate and Sahabat 46 Estate have emissions (Criteria 5.6 and 7.8); identified and implemented the following Continual Improvement Action Plans for the period 2013 to 2015
• Social impacts (Criterion 6.1); as required:
1. Reduce the consumption of pesticides,
• Optimising the yield of the supply 2. Increase the acreage for cows and buffalo, base. 3. Increase the acreage for beneficial plants ( tumera subulata, cassia cobanensis, antigonon leptopus ), 4. Increase hectarage of fertilized subsoil areas, 5. Increase hectarge of smart weeding to reduce water consumption, 6. Increased recycling (scrap iron, paper, plastic), 7. Building badminton courts for employees. 8. Repair and repainting of workers’ houses/quarters. 9. Free tuition. 10. Reduce the delivery time of FFB to POM. Major NC# 11. Increase FFB quality and yield. OCL-03 However, there was no adequate evidence of results on the action plans items. A Major Non-Conformance was raised.
3.1.1 Supply Chain Certification Standards Findings - on CPO Mill
The Supply Chain model applied at KKS Mercu Puspita POM during this Main Assessment is Module E – CPO Mills: Mass Balance (MB).
Details of findings are as follows:
E.1 Documented procedures Indicators Findings and Objective Evidence Compliance E.1.1 A documented Supply Chain Procedure Doc No. FGVPM Complied The facility shall have written RSPO SCCS Issue 1.0 Rev 2.0 (Effective 1 Dec 2012) SOP for procedures and/or work instructions Mill RSPO Supply Chain Certification System has been to ensure the implementation of all established and implemented using the Mass Balance (MB) the elements specified in these module. requirements. This shall include at minimum the following: a) Complete and up to date The SOP addressed the following requirements: Complied procedures covering the • Purchase, delivery, receipt, storage and processing of FFB implementation of all the elements from own PMU estates and other FFB suppliers (Outside in these requirements Crop Producers), • Production and storage of CPO, production data and capacity, • Sales and dispatch of CPO, • Document control, • Record control with retention period of 10 years. Implementation complied with all the requirements. b) The name of the person having The Mill Manager, Encik Afzainizam bin Ja’afar has been Complied overall responsibility for and appointed as the person responsible and with authority to authority over the implementation of implement RSPO Supply Chain requirements at the POM. He these requirements and compliance is assisted by the Assistant Mill Manager, Encik Mohamad
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Report No.: R9293/14 1 Felda Global Ventures Plantations (Malaysia) Sdn Bhd Page 43 of 69 KKS Mercu Puspita Grouping Main Assessment with all applicable requirements. Zubir, who has the knowledge of the Supply Chain System. This person shall be able to Organization Chart and job descriptions have been demonstrate awareness of the documented. facilities procedures for the implementation of this standard. E.1.2 The SOP covers the receiving of certifiable FFB supply from the Complied The facility shall have documented PMU estates and non certifiable FFB from the other FGVPM procedures for receiving and PMUs and Outside Crop Producers. processing certified and non All supplies of FFB were subjected to verification of documents certified FFBs. (delivery note) that indicates the origin of the fruit source and quantity check by weighbridge personnel and FFB quality check by the laboratory personnel.
E.2 Purchasing and goods in Indicators Findings and Objective Evidence Compliance E.2.1 The weighbridge personnel verified the delivery note Complied The facility shall verify and concerning the supply source of FFB received and records this document the volumes of certified information and the as weighed tonnages in the weighbridge and non certified FFBs received. ticket. All relevant FFB data are entered into the PGVPM computer system and/or daily reporting spreadsheet. Daily data may be extracted from the computer system. Weekly and monthly reports are submitted to the Sabah Zone Office and Kuala Lumpur Head Office through the Mill Performance Report (MPR) system. Production Report for Jan – Dec 2013 is verified to be Mass Balance CPO. Satisfactory performance of deliveries of FFB made by transport contractors hired by the estates.
E.2.2 The POM has an internal monitoring and reporting mechanism Complied The facility shall inform the CB for informing the CB of significant production variations. So far, immediately if there is a projected there is no projected overproduction. overproduction. E.3 Record keeping Indicators Findings and Objective Evidence Compliance E.3.1 Records and reports necessary for all aspects of the Complied The facility shall maintain accurate, requirements were verified and confirmed to be available. complete, up to date and accessible The records and reports were updated daily/ regularly, properly records and reports covering all filed and readily retrievable. aspects of these requirements. E.3.2 The SOP specified that all records and reports shall be kept for Complied Retention times for all records and a minimum of 10 years. The archived records and reports are reports shall be at least five (5) retrievable. years. E.3.3 There are four CPO storage tanks, each with a 1800 MT Complied The facility shall record and balance capacity, at the POM designated for the storage of Mass all receipts of RSPO certified FFB Balance (MB) CPO. and deliveries of RSPO certified CPO, PKO and palm kernel meal on All receipts of certifiable FFB, FFB processed, CPO production, a three monthly basis. PK production and balance stocks were recorded by the Mill. Transaction documents and bookkeeping are available for CPO and PK. Monthly summary report of above information submitted to the Sabah Zone Office and Kuala Lumpur Head Office.
There is no Palm Kernel mill for production of PKO at the POM.
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PK sold and delivered to the Kernel Crushing Plant at Wilayah Sahabat.
The two weighbridges at the Mill are duly calibrated and calibration certificates found to be in order.
E.3.4 All deliveries of the MB sales of CPO are from positive stock. Complied The following trade names should POM has prepared an appropriate stamp for the identification of be used and specified in relevant RSPO certified CPO and PK. Documents to be stamped documents, e.g. purchase and sales “RSPO CPO or PK – Mass Balance” appropriately for CPO and contracts, e.g. *product name*/SG PK products. or Segregated. The supply chain model used should be clearly Traceability verified from sampled records (FFB Delivery Note, indicated. Weighbridge Ticket, FFB & Truck Daily Summary, Production Report, CPO Storage Report and CPO Delivery Note or Shipping Instruction) for the period Jan 2013 to Jul 2014.
E.3.5 There is no outsourced activity at this POM. Complied In cases where a mill outsources activities to an independent 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. E.4 Sales and good out Indicators Findings and Objective Evidence Compliance E.4.1 Items (a) to (e) were included in the company’s invoices, Complied The facility shall ensure that all delivery note and other relevant documents to all CPO buyers sales invoices issued for RSPO as stipulated in the SOP for RSPO/MB module. Deliveries of certified products delivered include CPO and PK made with Delivery Note or Shipping Instruction. the following information: Data entry into computer system or reporting spreadsheet. a) The name and address of the Delivery of CPO and PK checked to ensure that the authorized buyer; quantities are not exceeded. b) The date on which the invoice CPO and PK deliveries are made by contractor, Felda was issued; Transport Services. c) A description of the product, including the applicable supply chain model (Segregated); d) The quantity of the products delivered; e) Reference to related transport documentation. E.5 Training Indicators Findings and Objective Evidence Compliance E.5.1 Mill personnel have been trained in the Supply Chain The facility shall provide the training Certification System with Mass Balance (MB) Module and for all staff as required to implement RSPO Awareness on 01 04/10/2013 and training records are the requirements of the Supply available. Interview with selected mill personnel confirmed their Chain Certification Systems. awareness and knowledge of the supply chain. E.6 Claims Indicators Findings and Objective Evidence Compliance E.6.1 The SOP stated that the PMU will only make claims on certified Complied The facility shall only make claims CPO and PK from certified FFB using MB model according to regarding the use of or support of "RSPO Rules on Market Communications and Claims" and "RSPO Trademark usage and Guidelines".
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RSPO certified palm oil that are in So far, no claims made by the PMU. compliance with the RSPO Rules for Communication and Claims.
3.1.2 Status on Supply Chain on POM: Based on the documents and records presented during the on site verifications made, it is concluded that the FGV Plantations Mercu Puspita 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 2014/2015.
3.1.3 Status on Trading of Certified Palm Products by PMU: The PMU and POM has not commenced the trading of any of its certifiable palm products under the MB module.
3.2 Status of Identified Noncompliance and Corrective Actions, Observations and Positive Elements. The status of the Noncompliances (NCR) and Observations (OBS) identified against the MYNI Compliance Indicators is as per the details below: Assessment Type Year Noncompliance (NCR) Observations (OBS) Main Assessment 2014 13 (6 Major & 7 Minor) 8
3.2.1 Year 2014: Main Assessment (6 MAJOR NCRs)
NCR # MYNI Details of NCR Indicator MAJOR 2.2.2 Date issued: 15 Aug 2014 OCL-01 Nonconformance: Maps provided by the PMU did not meet the “Transparency in Plantation Concession Boundaries” requirement as follows: • TITLE • SCALE INDICATOR Minimum scale 1:50,000 • ORIENTATION • CLEAR BORDER(s) – readable quality • LEGEND Informative and readable legend • MAP LOCALITY (map is contextualized in a wider area with a smaller map) • PROJECTION is necessary to combine and overlay maps with minimum distortion. • GEO REFERENCE (using map coordinates, such as latitude and longitude or Universal Transverse Mercator) is crucial because shows how any map relates to real world coordinates and allows for combining data from different sources. • SOURCE(s) of the map
Root Cause and Corrective Action:
Suitable maps were not available at the PMU.
Maps meeting the specified requirements were obtained from the Land and Survey Department of FGV and FASSB.
Verification for closure: Maps submitted for all the estates in the PMU verified to be satisfactory.
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NC status verified by auditor: Closed by OCL Date closed: 08 Nov 2014 Verification (for effectiveness):
NCR # MYNI Details of NCR Indicator MAJOR 5.1.1 Date issued: 15 Aug 2014 OCL-02 Nonconformance: Environmental aspect and impact assessment conducted by the Sahabat 07 Estate and Sahabat 46 Estate on 28/11/2013 and its action plan documented and implemented. However, there was no adequate evidence of results (‘bukti pelaksanaan”) on the action plan items.
Root Cause and Corrective Action:
Did not prepare the evidence for each of the action plans that was taken.
Provide the records and evidence of implementation for each of the action plans for the environmental aspects and impacts that were implemented.
Verification for closure: Records and evidence of implementation submitted for the various action plans that include replanting terraces, cover crop, construction of drainage, buffer zones for conservation areas, planting of beneficial plants, new hostel for workers and clean water supply. Corrective actions are satisfactory.
NC status verified by auditor: Closed by OCL Date closed: 08 Nov 2014 Verification (for effectiveness):
NCR # MYNI Details of NCR Indicator MAJOR 8.1.1 Date issued: 15 Aug 2014 OCL-03 Nonconformance: The Sahabat 07 Estate and Sahabat 46 Estate have identified and implemented Continual Improvement Action Plans for the period 2013 to 2015 as required. However, there was no adequate evidence of results (‘bukti pelaksanaan”) on the action plans items.
Root Cause and Corrective Action:
Did not prepare the evidence for each of the action plans that was taken.
Provide the records and evidence of implementation for each of the Continual Improvement Action Plans that were implemented for year 2014. Verification for closure: Records and evidence of implementation submitted for the various Continual Improvement Action Plans that include reduction in the usage of paraquat, increased planting of beneficial plants, construction of badminton courts and social contributions to the local communities.
NC status verified by auditor: Closed by OCL Date closed: 08 Nov 2014
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Verification (for effectiveness):
NCR # MYNI Details of NCR Indicator MAJOR 4.4.2 Date issued: 15 Aug 2014 CFK-01 Nonconformance:
1. On Sahabat 07 Estate, F 27 where the stream was running across the field, there was no sign board indicating the buffer zone area, and no marking of buffer zone boundaries.
2. On Sahabat 46 Estate, F 42 where the stream was running across the field, buffer zone boundaries had been clearly demarcated. However, the width of buffer zone was insufficient at only 5 to 10 metres. Sabah state requirement as well as the SOP on buffer zone for stream < 5 metres is 20 metres on either side of the stream.
Root Cause and Corrective Action:
Did not make the sign boards for indicating the buffer zone area and improper marking of the buffer zones that did not comply with the requirements of the SOP.
Sign boards made and placed at the buffer zone areas. Change the marking of the buffer zone to be in accordance with the requirements of the SOP.
Verification for closure: Corrective actions taken with evidence of photos found to be satisfactory. .
NC status verified by auditor: Closed by OCL Date closed: 08 Nov 2014 Verification (for effectiveness):
NCR # MYNI Details of NCR Indicator MAJOR 4.6.2 Date issued: 15 Aug 2014 CFK-02 Nonconformance: On Sahabat 07 and Sahabat 46 Estates, the records of pesticides use (including active ingredients used and their LD 50, amount of a.i. applied per ha and number of applications) had not been maintained.
Root Cause and Corrective Action:
Records of pesticides use (that include the a.i. applied per ha) were not updated and made available for the audit.
The records of pesticides use were updated to include the a.i. applied per ha and other required details.
Verification for closure: The records of pesticides use submitted verified to contain the necessary details and therefore the corrective action is satisfactory.
NC status verified by auditor: Closed by OCL Date closed: 08 Nov 2014
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Verification (for effectiveness):
NCR # MYNI Details of NCR Indicator MAJOR 4.7.3 Date issued: 15 Aug 2014 CFK-03 Nonconformance: Sahabat 46 Estate had yet to provide safety helmet to the FFB harvesters and loaders.
Root Cause and Corrective Action:
The records of issuance of safety helmet and other PPE were not updated.
The workers concerned were provided with the necessary PPE and the records of issuance of PPE were updated.
Verification for closure: The records of issuance of safety helmet and other PPE and confirmation of receipt by the workers in Sahabat 46 and Sahabat 07 estates were submitted. Corrective action is satisfactory.
NC status verified by auditor: Closed by OCL Date closed: 08 Nov 2014 Verification (for effectiveness):
3.2.2 Year 2014: Main Assessment (7 Minor NCRs)
NCR # MYNI Details of NCR Indicator MINOR 1.1.2 Date issued: 15 Aug 2014 OCL-01 Nonconformance: At the Palm Oil Mill, the survey questionnaire from stakeholders’ consultation were properly filed. However, there was no record of analysis or summary of the stakeholders’ feedback.
Root Cause and Corrective Action:
Summary and report for the stakeholders’ consultation conducted were not prepared.
Summary and an analysis for the stakeholders’ consultation conducted will be prepared.
Verification for closure: The summary and analysis for the stakeholders’ consultation contained the positive and negative impacts and the management action plans. Corrective action is satisfactory.
NC status verified by auditor: Closed by OCL Date closed: 08 Nov 2014 Verification (for effectiveness):
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NCR # MYNI Details of NCR Indicator MINOR 2.1.3 Date issued: 15 Aug 2014 OCL-02 Nonconformance: The procedure includes a monitoring mechanism of a regular check and evaluation for compliance against the applicable laws in the Legal Register. However, at Sahabat 07 Estate and Sahabat 46 Estate, there was no record of the completed checklist used for determining compliance.
Root Cause and Corrective Action:
The person responsible failed to complete the Compliance Checklist for confirmation of compliance with the applicable laws.
Action taken to complete and update the Compliance Checklist at Sahabat 07 Estate and Sahabat 46 Estate. A letter of appointment of a person responsible for ensuring compliance with applicable laws shall be issued.
Verification for closure: Verification for closure of Minor NCR at next Surveillance Assessment.
NC status verified by auditor: Date closed: Verification (for effectiveness):
NCR # MYNI Details of NCR Indicator MINOR 4.2.4 Date issued: 15 Aug 2014 CFK-01 Nonconformance: On Sahabat 46 Estate, F 42, EFB application along the inter rows of mature palm was up to 3 to 4 layers. This is contrary to the SOP which states that EFB should be spread in 1 layer along the inter rows.
Root Cause and Corrective Action:
Insufficient supervision and monitoring during the application of EFB at the field.
The EFB applied at Block 42 was spread out into a single layer. For any future EFB application, the task must be verified to comply with the SOP. A photo of the area concerned was attached.
Verification for closure: The corrective action taken, evidenced by the photo, is satisfactory.
NC status verified by auditor: Closed by OCL Date closed: 08 Nov 2014 Verification (for effectiveness):
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NCR # MYNI Details of NCR Indicator Minor 4.3.2 Date issued: 15 Aug 2014 CFK-02 Nonconformance: On Sahabat 07 Estate, 2014 replant, there was no construction of planting terraces on land with slope more than 6°. This is contrary to the SOP dated 1 6 2012 which states that planting terraces must be constructed on land with slope of 6° to 25° during replanting.
Root Cause and Corrective Action:
At Sahabat 07 Estate, a mechanized lane was constructed instead of planting terrace as a pilot project.
A documented authorization such as a Works Order or Report that states the construction of a mechanized lane and no planting terrace to be constructed shall be issued by the General Manager / Head of Zone / PA.
Verification for closure: Verification for closure of Minor NCR at next Surveillance Assessment.
NC status verified by auditor: Date closed: Verification (for effectiveness):
NCR # MYNI Details of NCR Indicator Minor 4.8.2 Date issued: 15 Aug 2014 CFK-03 Nonconformance: On Sahabat 07 and Sahabat 46 Estates, the record of training for each employee had yet to be prepared.
Root Cause and Corrective Action:
Failure to maintain programme and records of training for employees.
Training programme for all employees of estates to be established. Records of training to be maintained for the training conducted for each work activity for employees.
Verification for closure: Verification for closure of Minor NCR at next Surveillance Assessment.
NC status verified by auditor: Date closed: Verification (for effectiveness):
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NCR # MYNI Details of NCR Indicator Minor 6.1.3 Date issued: 15 Aug 2014 MNM- Nonconformance: 01 Social Impact Assessment was carried out for the Sahabat 07 Estate and Sahabat 46 Estate and its action plan documented and implemented. However, there was no adequate evidence of results (‘bukti pelaksanaan”) on the action plan items.
Root Cause and Corrective Action:
Failure to maintain records of results of implementation of the SIA action plans.
Evidence and records of action plans implemented shall be maintained.
Verification for closure: Verification for closure of Minor NCR at next Surveillance Assessment.
NC status verified by auditor: Date closed: Verification (for effectiveness):
NCR # MYNI Details of NCR Indicator Minor 6.9.3 Date issued: 15 Aug 2014 MNM- Nonconformance: 02 There was no specific programs/mechanism being planned and no evidence of the implementation for particular issues faced by women such as policy being communicated, training, awareness on the domestic violence and sexual harassment, etc. for Sahabat 07 Estate and Sahabat 46 Estate.
Root Cause and Corrective Action:
The Women Gender Committee has not been established at the estates concerned.
1. Establishment of the Women Gender Committee at the estates concerned. 2. The Committee shall discuss the issues concerning women during the meetings and minutes of meeting shall be maintained. 3. Programme for women shall be carried out.
Verification for closure: Verification for closure of Minor NCR at next Surveillance Assessment.
NC status verified by auditor: Date closed: Verification (for effectiveness):
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3.2.3 Year 2014: Main Assessment (8 Observations)
Status RSPO Ref Opened Closed Remark, P&C Location Details of Observation No: date date if any Indicator
Obs # 5.3.3 Palm Oil Mill It was found that the recycle bin for OCL aluminium cans at the Palm Oil Mill and 15 Aug 01 Sahabat 46 Sahabat 46 Estate contained plastic 2014 Estate bottles and other materials.
Obs # 4.6.10 Sahabat 07 Estate vehicles had been serviced by CFK Estate outside workshops, but they were not 15 Aug 01 sure whether the disposal of the 2014 Sahabat 46 scheduled waste had been handled by a Estate contractor approved by DOE Sabah.
Obs # 4.6.11 Sahabat 07 CHRA medical surveillance had been CFK Estate carried out on 26 12 2012 for 26 15 Aug 02 workers. The estate only made request 2014 to the doctor to carry out CHRA medical surveillance again for the workers on 7 7 2014, and to date, it had yet to be carried out. Obs # 4.7.5 Sahabat 07 First Aid Kits, though had been provided CFK Estate to the Mandores, but they did not carry 15 Aug 03 with them to the sites of work, i.e. 2014 harvesting and pesticide spraying operations.
Obs # 6.1.4 Sahabat 46 Social Impact Assessment for Sahabat MNM Estate 46 was carried out on 17/04/2012. New 15 Aug 01 SIA could be carried out as soon as 2014 possible. SIA could be carried out once every two years.
Obs # 6.2.1 Sahabat 07 Stakeholder meeting for Wilayah MNM Estate Sahabat has been conducted. However, 15 Aug 02 Sahabat 46 Internal and external stakeholder 2014 Estate meeting could be carried out for each location.
Obs # 6.9.2 Sahabat 07 Appointment letter for gender committee 15 Aug MNM Estate members could be made available. 2014 03 Sahabat 46 Estate
3.2.4 Identified Positive Elements 1) The PMU has provided proper infrastructure such as roads, grocery stores and badminton courts.
2) The PMU has contributed towards the local economy and has made significant financial contributions to the local communities.
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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 KKS Mercu Puspita Grouping operations in the course of assessment and consultations. During the Main Assessment, all pertinent feedback issues were reviewed and followed up for verification and these had been accordingly incorporated into the report findings. See table below:
Stakeholders’ Feedback PMU Response Intertek verification / Further action comment on further from PMU (if any) action (if any) Government Agencies Comunication done via email on 04 Jun 2014. See list under para 2.5.
Feedback received from Sabah Response from FGVPM: Verified during on site PMU to update Forestry Department: assessment that there Intertek concerning 1. The planting or enrichment is no forest reserve at the PMUs that may 1. Suggestion that FGVPM planting of relevant riverbank / the boundaries of be affected by this rehabilitake the Sahabat river forest tree species along Mercu Puspita PMU. feedback and the reparian reserve by planting Sahabat river will be one of the progress of the certain tree species and also management plan of FGV Tree Also, verified that FGV Tree Planting control measures to prevent Planting Project. Through the Sahabat river does not Project. pollution to the river. project river buffer, steep pass through the Mercu slope, unplantable area, HCV Puspita PMU. 2. Suggestion that FGVPM or biodiversity area and forest marked clearly the estate corridors are areas involved in However, Intertek will boundary so that there is no the FGV Forest Tree Planting continue to take into encroachment into forest Project. The project will be consideration this reserve and to erect more initiated at one of FGV feedback when signages indicating prohibition complexes – Pontian conducting of entry into forest reserve and Plantation; enrichment planting assessments of other no hunting. Also, to remind along Kinabatangan river for PMUs of FGVPM in employees on the danger of wildlife corridor. Sabah. fire at the forest reserve boundary. 2. The demarcation of the buffer zone will be implemented according to the RSPO P&C.
Non-Governmental
Organizations Comunication done via email on 04 Jun 2014. See list under para 2.5. Feedback received from Malaysian Nature Society (a Response from FGVPM: Intertek has replied to On going stakeholder in environment / The information on certified MNS that prior to the engagement with biodiversity management) that PMU are publicly available at conduct of the Main MNS as part of the assessor, FGVPM and RSPO and CB websites. Assessment, only stakeholders’ RSPO to disclose fully the For the PMU undergoing certain information is consultation. information and place it in the assessment, the information on available. During the public domain so that that specific PMU will be in the assessment, Intertek Malaysian Nature Society Public Summary Report will verify the (MNS) can carry out its own published by the CB. operations of the PMU analysis and if need be conduct for compliance with the further verification on the In addition, Darrel Webber of RSPO P&C, MYNI, ground and finally make a RSPO replied to MNS as RSPO Supply Chain positive contribution to RSPO’s summarized below: Certification Standard.
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Report No.: R9293/14 1 Felda Global Ventures Plantations (Malaysia) Sdn Bhd Page 54 of 69 KKS Mercu Puspita Grouping Main Assessment on going assessment of the “Information may be scarce More information and specific PMUs. since the auditors would also findings relating to the be visiting it for the first time. specific PMU will be What the auditors are trying to contained in the Public do, at this point, is solicit Summary Report information from those who published by Intertek. might know the unit or area well enough. This will enable to the auditors to zoom in on issues or comments made once they are on the ground. Common issues may be flagged by stakeholder: 1. Many plantations in Sabah did not have EIAs. 2. Issue of plantations planting outside of their legal boundaries, especially along rivers and especially in Kinabatangan river areas. RSPO members are obliged to be transparent in providing information. Norazam of FGVPM will be able to furnish the information if it is specified by MNS.
Local Communities On site consultation and feedback sesssions were held during the assessment with various categories of stakeholders comprising of Contractors Suppliers, Transporter, Local community (School & Clinics), Government agencies, etc. and also employees/ workers were interviewed during the on site assessment.
Concerns and issues raised include: • Main road damaged and The PMU will examine the To be followed up require better maintenance. concerns and issues raised during the next Annual • Danger of crocodiles during and identify appropriate Surveillance flooding. actions. Assessment. • Need for improvement of stream and river water quality. • Problem of rubbish collection by the council in the Cenderawasih town area.
Positive comments include: • Contributions given to the local communities. • Employment opportunities for local people.
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• Health of employees being taken care.
Other Interested parties • Stakeholders generally Ongoing consultation, Verified during on site No further action confirmed that the PMU has meetings and relationship assessment that the needed. taken adequate positive building with interested parties PMU has management measures on environmental will be maintained. plan for the and social issues. imporvement of social and environmental needs of the local community.
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4.0 ASSESSMENT CONCLUSION AND RECOMMENDATION
Based on the findings above, Felda Global ventures Plantations (Malaysia) Sdn Bhd KKS Mercu Puspita Grouping had been able to demonstrate its compliance with the RSPO Principles and Criteria (Oct 2007), Malaysian National Interpretation (MY NI 2010) and the RSPO Supply Chain Certification Standard (Nov 2011) for Palm Oil Mill. The PMU is also aware of the new requirements of RSPO Pronciple and Criteria (Apr 2013) and actions needed for the subsequent assessment at the next sureveillance assessment.
Therefore, it is recommended that the certification of Felda Global ventures Plantations (Malaysia) Sdn Bhd KKS Mercu Puspita Grouping be approved.
Signed for and on behalf of Intertek Certification International Sdn Bhd
Dr. Ooi Cheng Lee Lead Assessor
Date: 08 Nov 2014
4.1 Acknowledgement of Internal Responsibility and Confirmation of Assessment Findings
This is to acknowledge and confirm the assessment visits described in this report and the acceptance of the contents and findings in this assessment report.
Signed for and on behalf of Felda Global Ventures Plantations (Malaysia) Sdn Bhd
Mr. Norazam Abdul Hameed General Manager, Plantation Sustainability And Quality Management (PSQM) Department
Date: 15 Nov 2014
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4.2 Intertek RSPO Certificate details for KKS Mercu Puspita Grouping Certificate No: RSPO 929388 Issue date: 21 November 2014 Expiry date: 20 November 2019 Organization Felda Global Ventures Plantations (Malaysia) Sdn Bhd Address of Head Office: Felda Global Ventures Plantation (Malaysia) Sdn Bhd, PSQM Department, SPO Unit, 8th Floor Balai Felda, Jalan Gurney Satu, 54000 Kuala Lumpur RSPO Membership No: 1 0013 04 000 00 Plantation Management Unit: KKS Mercu Puspita Grouping Address of POM: Kilang Sawit Mercu Puspita, Peti Surat No. 60996, 91019, Lahad Datu, Sabah, 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 Mass Balance CPO & PK:
Details of the Mill and Supply bases covered by this certificate and the tonnage approved are: GPS Reference Name Address Latitude Longitude Mercu Puspita Mill POM Kilang Sawit Mercu Puspita, Peti Surat 29, 91150 5°12’23’’N 119°0’47’’E (Capacity: 60 Cenderawasih, Lahad Datu, Sabah, Malaysia MT/hour) FGVPM Sahabat 07 Ladang Sahabat 07, Peti Surat No. 77, 91150 Cenderawasih, 5°9’8’’N 119°0’14’’E estate Lahad Datu, Sabah, Malaysia FGVPM Sahabat 46 Ladang Sahabat 46, Peti Surat No. 46, 91550, Cenderawasih, 5°9’6’’N 119°0’14’’E estate Lahad Datu, Sabah, Malaysia FGVPM Sahabat 48 Ladang Sahabat 48, Peti Surat No. 48, 91550, Cenderawasih, 5°9’6’’N 119°0’7’’E estate Lahad Datu, Sabah, Malaysia FASSB Sahabat 06 Ladang Sahabat 06, Peti Surat No. 48, 91550, Cenderawasih, 5°9’6’’N 119°0’14’’E estate Lahad Datu, Sabah, Malaysia
The annual certifiable tonnages of CPO and PK production by KKS Mercu Puspita Grouping from the supply base/suppliers as assessed and verified during the current Main Assessment (based on Jan - Dec 2013 data) are detailed as follows: Jan – Dec 2013 Jan – Dec 2014 Jan – Dec 2015 POM - Actual - Actual + Projected - Projected
Total Certifiable FFB Processed (MT) 184,241.29 194,900 207,263
OER: OER: OER: Total Certifiable CPO Production (MT) 40,736 43,463 46,427 22.11 % 22.30 % 22.40 % KER: KER: KER: Total Certifiable PK Production (MT) 9,617 10,330 10,881 5.22 % 5.30 % 5.25 %
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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 was part of the RSPO Assessment team which audited several RSPO certified Plantation Management Units since 2012.
Mr. Chen Fai Kok (CFK) – Assessor / Technical Expert (Good Agriculture Practice and Integrated Pest Management) – Diploma in Agriculture
Mr. Chen Fai Kok has over 30 years work experience in the plantation sector. He has held a Senior Management role in the estate field operations including GAP and IPM. He had also served as the Branch Chairman of the Incorporated Society of Planters (ISP) in several branches for over 20 years. He has successfully completed training in Estate Management and the Intertek In House RSPO P&C, MYNI and Cambodian LI Assessor courses. He is a member of the RSPO CB Assessment team which audited several RSPO certified Plantation Management Units in since 2009.
Mr. Mohd Nazib bin Marwan (MNM) – Assessor / Technical Expert (OSH, Social) – Diploma of Mechanical Engineering; Polytechnic of Sultan Salahuddin Abdul Aziz Shah
Mr. Mohd Nazib Marwan is a Third Party Assessment (TPA) Lead Auditor for ISO 9001:2008 and Auditor for OHSAS 18001:2007 in Intertek Malaysia. He has over 11 years of fieldwork and experience in auditing in various industry sectors. He has successfully completed the IRCA accredited Lead Auditor Course in ISO 9001:2008 and OHSAS 18001:2007, RSPO Principles and Criteria Lead Assessor Course and International Sustainable Carbon Certification (ISCC) Lead Auditor Course. He has also completed RSPO training on RSPO P&C (2013) and RSPO RED requirements. He was an Inspector for 5 years in the Department of Occupational Safety and Health Malaysia (DOSH) and had audited several Palm Oil Estates and inspected the Palm Oil Mill operations since 2004. He also had experience in the planting of oil palm (small holders) which belonged to his family located in Batu Pahat, Johor, Malaysia.
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Appendix B:
Assessment Plan (Actual)
Date Time Assessors and Assessment Activity Asssessment Team 11/08/2014 9.00 – 1.00 pm Travel to KKS Mercu Puspita, Lahad Datu, Sabah 1.00 pm 2.00 pm Lunch Break Day 1 2.00 pm – 3.00 pm Opening Meeting and Briefing at KKS Mercu Puspita– 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 Chen Fai Kok Mohd Nazib bin Marwan Dr. Ooi Cheng Lee (OCL) (CFK) (MNM) 12/08/2014 9.00 am – Meeting & Briefing at KKS Mercu Puspita (Palm Oil Mill Office) Day 2 10.00 am 10.00 am – Site assessment at KKS Site assessment at KKS Site assessment at KKS 1.00 pm Mercu Puspita Palm Oil Mill Mercu Puspita Palm Oil Mill Mercu Puspita Palm Oil Mill (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 • SCC for POM 1.00 pm – Lunch 2.00 pm 2.00 pm Continue site assessment Continue site assessment at Continue site assessment at 6.00 pm at KKS Mercu Puspita Palm FGVP Sahabat 46 estate FGVP Sahabat 46 estate Oil Mill 6.00 pm– Break 7.00 pm 7 – 10 pm Team meeting and discussion
Date Time Assessors and Assessment Activity Assessment Team 13/08/2014 9.00 am Chen Fai Kok Mohd Nazib bin Marwan Dr. Ooi Cheng Lee (OCL) Day 3 – 1.00 (CFK) (MNM) pm Site assessment at FGVP Site assessment at FGVP Site assessment at FGVP Sahabat 46 estate (RSPO Sahabat 46 estate (RSPO Sahabat 46 estate (RSPO P&C: 1~8) P&C: 1~8) 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
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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 14/08/2014 9.00 am – Chen Fai Kok Mohd Nazib bin Marwan Dr. Ooi Cheng Lee (OCL) Day 4 1.00 pm (CFK) (MNM) Site assessment at FGVP Site assessment at FGVP Site assessment at FGVP Sahabat 07 estate (RSPO Sahabat 07 estate (RSPO Sahabat 07 estate (RSPO P&C: 1~8) P&C: 1~8) P&C: 1~8)
• P1 Transparency • P4 Best Practices at • P6 Employees, Individuals & • P2 Laws & regulations Estates & 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 – Lunch 2.00 pm 2.00 pm Continue site assessment Continue site assessment Continue site assessment at 6.00 pm at FGVP Sahabat 07 estate at FGVP Sahabat 07 estate FGVP Sahabat 07 estate 6.00 pm– Break 7.00 pm 7 – 10 pm Team meeting and discussion
Date Time Assessors and Assessment Activity Assessment Team 15/08/2018 9.00 am – 11.00 am Preparation of Closing Meeting Day 5 11.00 am – 12.00 pm Team Meeting and Discussions with KKS Mercu Puspita 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
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Appendix C-1:
Location of Felda Gobal Ventures Plantations (Malaysia) Sdn Bhd (FGVPM) - KKS Mercu Puspita Grouping, Lahad Datu, Sabah, Malaysia
Felda Mercu Puspita
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Appendix C-2:
Location Map of FGVPM - KKS Mercu Puspita Grouping, Lahad Datu, Sabah, Malaysia (Estates: FGVPM Sahabat 07, FGVPM Sahabat 46, FGVPM Sahabat 48, and FASSB Sahabat 06)
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Appendix C-3-1: FGVPM Sahabat 07 Estate
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Appendix C-3-2: FGVPM Sahabat 46 Estate
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Appendix C-3-3: FGVPM Sahabat 48 Estate
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Appendix C-3-4: FASSB Sahabat 06 Estate
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Appendix D: Photographs of Assessment findings at FGVPM KKS Mercu Puspita Grouping
Sahabat 07 Est: F27 Buffer zone had not been marked. Sahabat 07 Est: F 27 Buffalo being used to collect FFB bunches from the inter row.
Sahabat 07 Est: F 27 Bags filled with soil to form weir in Sahabat 46 Est: F 42 Turnera subulata and the drain with the view of retaining water level in the Antigonon leptopus had been planted next to each drain. other.
Sahabat 46 Est: F 27 Buffer zone had been Sahabat 46 Est:: F 42 EFB had been applied in the demarcated, but only 5 to 10 metres wide. inter row with more than 1 layer.
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Indonesian workers quarters at Block 42, Sahabat 46 Surau at Sahabat 46 quarters (Block 42)
Cafetaria at Block 42, Sahabat 46 Newly completed Indonesian workers quarters (Asrama Permata in Sahabat 07)
Palm Oil Mill Effluent pond in KKS Mercu Puspita Participants for stakeholders’ interview session at Mercu Puspita PMU.
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Appendix E:
Time Bound Plan as submitted by FGVPM (updated in Aug 2014)
No Mill complexes to be audited in the respective year 2009 2010 2011 2012 2013 2014 2015 2016 1. K.Gelanggi Jengka Adela Belitong Palong Neram Krau 21 Timor 2. L. Utara 6 Jengka Lok Heng Bukit Serting Hilir Pancing Tersang 3 Besar 3. Jengka Semencu Kahang Maokil Besout Serting 8 4. L. Utara Waha Kulai Tenggaroh Trolak Pasoh 4 5. Jengka B. Nitar T.Timor Keratong 2 Cini 2 18 Kepayang 6. Padang Bukit Penggeli Kechau A Keratong 3 Cini 3 Piol Mendi 7. Kemasul Lepar Kechau B Sg. Kemahang Hilir Tengi 8. Tementi Bukit Fajar Keratong 9 Chalok Sagu Harapan 9. Triang Baiduri Mempaga Aring A Ayu 10. Embara. Aring B Budi 11. Lancang. Kertih Kemudi 12. Kalabakan Selendang
13. Umas Ciku
14. Kemudi. Sampadi Sakti 15. Mercu Puspita 16. Nilam Permata 17. Hamparan Badai 18. Jerangan Barat 19. Jerangan Baru 20. Selancar 2A 21. Selancar 2B New 2 6 9 9 9 21 14 Total 2 8 17 26 35 56 70
End
Intertek RSPO Report: 11 15 Aug 2014