PUBLIC SUMMARY REPORT

ANNUAL SURVEILLANCE ASSESSMENT (ASA3)

SIME DARBY PLANTATION Sdn Bhd Management Unit SOU20 Batu Pahat, Johor, Malaysia

Report Author

Charlie Ross – Prepared July 2013

BSi Group Singapore Pte Ltd (Co. Reg. 1995 02096-N) BSi Services Malaysia Sdn Bhd (Co.Reg. 804473 A) 1 Robinson Road B-08-01, Level 8, Block B, PJ8 #15-01 AIA Tower No. 23, Jalan Barat , Seksyen 8 SINGAPORE 048542 46050 Petaling Jaya Tel +65 6270 0777 SELANGOR MALAYSIA Fax +65 6270 2777 Tel +03 79607801 (Hunting Line) Aryo Gustomo: [email protected] Fax +03 79605801 www.bsigroup.sg [email protected]

ii TABLE of CONTENTS Page No

SUMMARY ...... 1 ABBREVIATIONS USED ...... 1

1.0 SCOPE OF SURVEILLANCE ASSESSMENT ...... 1–6 1.1 Identity of Certification Unit ...... 1 1.2 Production Volume ...... 1 1.3 Certification Details ...... 1 1.4 Description of Supply Base ...... 1 1.5 Progress against Time Bound Plan ...... 6 1.6 Progress of Associated Smallholders/Outgrowers towards RSPO Compliance ...... 6 1.7 Organisational Information/Contact Person ...... 6

2.0 ASSESSMENT PROCESS...... 7 2.1 Assessment Team Members ...... 7 2.2 Assessment Programme ...... 7 2.3 Stakeholder Consultation ...... 7

3.0 ASSESSMENT FINDINGS ...... 7–16 3.1 Summary of Findings ...... 7 3.2 Identified Nonconformities and Noteworthy Positive and Negative Observations (ASA3) ...... 14 3.3 Status of Nonconformities (Major and Minor) Identified during Previous Assessments...... 15 3.4 Issues Raised by Stakeholders ...... 16

4.0 CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY ...... 16 4.1 Date of next Surveillance Visit...... 16 4.2 Date of Closing Nonconformities (Major and Minor)...... 17 4.3 Sign-off of Surveillance Assessment Findings ...... 17

LIST of TABLES 1 Mill GPS Location ...... 1 2 Production Tonnages...... 1 3 FFB Tonnages Processed ...... 1 4a Age Profile of SOU20 Palms ...... 6 4b SOU20 Estates and Areas Planted ...... 6 5 Status of Nonconformities ...... 17

LIST of FIGURES 1 SOU20 Location Map ...... 2 2 Chaah Estate Layout ...... 3 3 North Labis Estate Layout ...... 4 4 Sungai Simpang Kiri Estate Layout ...... 5 5 BOD (mg/L) of Treated Mill Effluent ...... 8 6 Average Annual FFB Yield (t/ha/yr) ...... 9 7 Average Annual OER (%) ...... 9 8 Annual Mill Water Usage (t/t FFB) ...... 10 9 Mill Energy Usage (kWh/t CPO) ...... 12

LIST of APPENDICES A Supply Chain Assessment B Sime Darby Time Bound Plan C ASA3 Programme D List of Stakeholders Contacted E Evidence for Closing Nonconformity CR07

Public Summary Report – RSPO Annual Surveillance Assessment (ASA3) Page 1

SUMMARY Table 2. The PK extraction rate increased significantly during the year due to improvements in the palm kernel mill, such BSi Group Singapore Pte Ltd (BSi) has conducted the Annual as reduced losses in the fibre cyclone and improved Surveillance Assessment (ASA3) of Sime Darby Plantation efficiency of the nut-cracking equipment. Sdn Bhd Strategic Operating Unit SOU20 (SOU20) comprising

Chaah Mill, supply base, support services and infrastructure. BSi concludes that SOU20 operations comply with the Table 2: Production Tonnages requirements of RSPO Principles & Criteria: 2007 ; MY-NI Indicators and Guidance : 2010; and RSPO Supply Chain Chaah Palm Oil Mill CPO PK Certification Standard : November 2011, Module D – CPO Mills : Segregation Estimate at Certification 22,378 7,362 BSi recommends the continuation of the approval of SOU20 as a producer of RSPO Certified Sustainable Palm Oil. ASA1 Actual 18/11/11 – 17/11/12 27,996 6,598

ASA2 Actual 01/07/11 – 30/06/12 22,942 5,186 ABBREVIATIONS ASA3 Actual 01/04/12 – 31/03/13 22,754 7,047 AMESU All Malayan Estates Staff Union BOD Biological Oxygen Demand Projected 01/04/13 – 31/03/14 25,124 7,222 CDA Controlled Droplet Application CHRA Chemical Health Risk Assessment CPO Crude Palm Oil DOE Department of Environment DOSH Department of Occupational Safety & Health 1.3 Certification Details EFB Empty Fruit Bunch FFB Fresh Fruit Bunch Sime Darby RSPO Membership No: 035-04(O) HCV High Conservation Value BSi RSPO Certificate No: SPO 548299 HIRAC Hazard Identification Risk Assessment Control Initial Certification Assessment: 26, 27 & 29 June 2009 MAPA Malayan Agricultural Producers Association Date of Certification: 18 November 2010 MPOB Malaysian Palm Oil Board MY-NI Malaysian National Interpretation NUPW National Union of Plantation Workers OSHAS Occupational Safety & Health Assurance System 1.4 Description of Supply Base OSH Occupational Safety & Health PK Palm Kernel The Chaah Mill supply base is FFB from the three company POME Palm Oil Mill Effluent owned Estates, Chaah, North Labis and Sungai Simpang Kiri. PPE Personal Protective Equipment The FFB production from Company owned Estates for the R&D Research and Development Initial Certificate and actual production for the 12 months SIA Social Impact Assessment previous to ASA3 are listed in Table 3, together with the SOP Standard Operating Procedure projection for the next year. The crop from North Labis Estate will be supplied to another Sime Darby Mill in 2013/2014 and Chaah Mill is projected to process only the 1.0 SCOPE OF SURVEILLANCE ASSESSMENT crop from Chaah and Sungai Simpang Kiri Estates. 1.1 Identity of Certification Unit Table 3: FFB Tonnages Processed The SOU20 Chaah Mill and Estates are located at Batu Pahat, Johor (Figure 1). Additional maps showing details of Chaah, Actual Projected At Initial North Labis and Sungai Simpang Kiri Estates are also Source 01/04/12 – 01/04/13 – Certification included (Figures 2, 3 and 4). The GPS location of the Mill is 31/03/13 31/03/14 shown in Table 1. SOU20 Estates Chaah 63,938 68,090 79,062 Table 1: Mill GPS Location North Labis 37,101 5,841 0 Sungai Simpang – 31,595 35,138 MILL LONGITUDE LATITUDE Kiri Chaah Sub total 101,039 105,527 114,200 102°59’ 47∙6772” 2°10’ 40∙8468” (30t/hr capacity) Adjacent Sime Darby Estates Welch - 386 0 Pengkalan Bukit - 657 0 Sub total - 1,043 0 1.2 Production Volume TOTAL 101,039 106,569 114,200 The annual production tonnages for CPO and PK for the period from the start of the Certificate (18/11/2010), for the 12 months previous to ASA3 (01 April 2012 – 31 March 2013) and projected for the next twelve months are listed in

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Figure 1: SOU20 Location Map

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Figure 2: Chaah Estate Layout

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Figure 3: North Labis Estate Layout

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Figure 4: Sungai Simpang Kiri Estate Layout

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The SOU20 Estates were developed in 1974 (Chaah) and Standard : November 2011, Palm Oil Mills - Module D: 1911 (North Labis). Oil palms were first planted in the 1960s Segregation Mechanism – Refer to Appendix A for details. at North Labis and are in their third cycle and at Chaah palms are in their second cycle. The age profile of the palms is shown in Table 4a. North Labis Estate is being replanted and 1.5 Progress against Time Bound Plan 20% of the palms are less than 5 years old and have not yet reached peak production. At Sungai Simpang Kiri Estate Sime Darby Time Bound Plan (updated March 2013) is almost half of the palms have just reached maturity. included as Appendix B. Sime Darby has achieved RSPO Certification of all 36 of the Strategic Operating Units (SOU) Table 4a: Age Profile of SOU20 Palms in Malaysia, and 19 of the 25 in Indonesia. Sime Darby has completed the Initial Certification Assessments for the % PLANTED ESTATE AGE (years) remaining 6 SOUs in Indonesia and the assessment reports AREA are pending review by the RSPO. Upon certification of the 21 – 30 0·2 remaining 6 SOUs, Sime Darby will have achieved the Time 11 – 20 69·7 Bound Plan. Effective from July 2012, Sime Darby has closed Chaah 4 – 10 30·1 Jeleta Bumi and Mostyn Mills and converted Sepang Mill to third party operation, which reduces the number of SOUs in 0 – 3 0 Malaysia to 36. 21 – 30 10 11 – 20 62 BSi has continued involvement with RSPO Surveillance North Labis assessments of 13 of the Sime Darby SOUs during the 4 – 10 14 2012/13 period. During this time, Sime Darby has kept BSi 0 – 3 14 informed of issues and claims made against them. The 21 – 30 0 issues raised previously by Serikat Petani Kelapa Sawit (SPKS) Sungai Simpang 11 – 20 28·6 in Sanggau District Indonesia in relation to plasma Kiri 4 – 10 48·1 smallholders’ claims against PTMAS were followed up 0 – 3 23·3 between 07 and 09 August 2012. Information indicated the status quo has been maintained and PTMAS has continued to address the issues applicable to its operations. The areas planted are shown in Table 4b. At the time of preparation of this Report, BSi is not aware of: (1) any unresolved significant land disputes that are Table 4b: SOU20 Estates and Areas Planted not in a process of resolution; (2) any replacement of primary forest or loss of HCVs; Mature Immature Estate TOTAL (3) any labour disputes that are not being resolved (ha) (ha) through an agreed process; Chaah 2,685 0 2,685 (4) any evidence of noncompliance with any law at any of the landholdings. North Labis 2,883 473 3,356 Sungai BSi considers that Sime Darby meets the RSPO requirements 1,517 461 1,978 Simpang Kiri for Partial Certification. OVERALL 7,085 934 8,019 TOTAL 1.6 Progress of Associated Smallholders/ Outgrowers towards RSPO Compliance Supply Chain Chaah Palm Oil Mill does not process any crop from Inspection of records confirmed SOU20 has processed only Smallholders or Outgrowers. FFB from RSPO Certified Sime Darby Estates over the previous 12 months (01 April 2012-31 March 2013). Sime Darby uses the segregation mechanism for the supply chain 1.7 Organisational Information / Contact Person for Chaah Mill. All deliveries of FFB to the Mill are issued with a weighbridge docket that records the details of the Sime Darby Plantation Sdn Bhd supplier, truck registration number, driver’s name and the Management Unit SOU20 tonnage. Sime Darby Commodities Trading Marketing Batu Pahat Johor MALAYSIA Department, located at Head Office, manages all of the purchases of crop and sales of product. The system is Contact Person: Mr Azhanizan Bin R Deni computerised and when the Mill inputs the code for a Buyer, Senior Assistant In-charge the RSPO Supply Chain information is generated Chaah Palm Oil Mill automatically for the despatch note and the sales invoice. Phone: +60 07-934 2454 During the previous 12 months there was no sale of either Fax: +60 07-934 1455 Certified Sustainable Palm Oil (CSPO) or Certified Sustainable Email: [email protected] Palm Kernel (CSPK) from Chaah Mill. Inspection of documents confirmed that SOU20 maintains all of the applicable documentation required for verification of implementation of the RSPO Supply Chain Certification

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2.0 ASSESSMENT PROCESS 3.0 ASSESSMENT FINDINGS 2.1 Assessment Team Members 3.1 Summary of Findings

Charlie Ross – Lead Assessor RSPO The Nonconformity CR07 assigned during ASA2 was B.App.Sc. M.Sc (Env.Studies) upgraded to a Major Nonconformity. Observation 07 Lead Auditor EMS RABQSA Cert No14370 identified during ASA2 was upgraded to a Nonconformity Topics assessed: Legal, Environment, Agricultural Practices, (CR08). Six (6) Observations/Opportunities for improvement Social, Sustainability, Supply Chain were identified. SOU20 prepared a Corrective Action Plan for addressing the identified Nonconformities, which BSi Iman Nawireja – Assessor RSPO reviewed and accepted. Refer Section 3.2 Page 14 for B.Ag.Sc. M.Sc. (Comm) details of Nonconformities and Corrective Actions. Topics assessed: Legal, Environment, Agricultural Practices, Social, Sustainability Review of the Nonconformities assigned during previous Assessments (CR01 – CR05) found the corrective actions Robyn Ross – Social Assessor RSPO were being effectively and consistently implemented and Topics assessed: Legal, Social, Women and Families, the nonconformities remain closed. The Nonconformities Sustainability that were assigned to Minor Compliance Indicators 5.2.3 Junecel Maloloy – Facilitator (Women and Families) (CR06) and 6.1.3 (CR07) and the eight (8) Observations/ Opportunities for Improvement identified during ASA2 were followed up to check the effectiveness of corrective actions. 2.2 Assessment Programme Refer Section 3.3 Page 15 for details.

The ASA3 was carried out 02–03 May 2013. The Assessment BSi recommends continuation of Certification for SOU20 as a Programme is included as Appendix C. producer of RSPO Certified Sustainable Palm Oil.

The Programme included assessments of Chaah Palm Oil Mill, Chaah and Sungai Simpang Kiri Estates against all of the PRINCIPLE 1: Commitment to Transparency RSPO P&C and applicable RPSO indicators, and RSPO Supply SOU20 has maintained the filing system for documentation Chain Certification Standard : November 2011 and the and has kept policies and other information available on Supply Chain requirements for Segregation. The Estates request. Requests for information, for example, from the were selected for assessment on the basis of alternate years. MPOB have been responded to and records were available The Nonconformities that were assigned during previous for inspection during the site visit. assessments (CR01 – CR07) and the Observations that were identified during ASA2 were followed up to check the Criterion 1.1: Oil palm growers and millers provide effectiveness of corrective actions – refer Section 3.3 Page adequate information to other stakeholders on 15. environmental, social and legal issues relevant to RSPO Criteria, in appropriate languages & forms to allow for The methodology for collection of objective evidence effective participation in decision making. included physical site inspections, observation of tasks and processes, interview of staff, workers and their families and The Mill and Estates maintain a filing system for requests for external stakeholders, review of documentation and information received from Government and other monitoring data. Checklists and questionnaires were used stakeholders. Review of the files showed that the requests to guide the collection of information. for information are mainly from MPOB, such as a “Survey of OER, POME & Biogas in Palm Oil Mills 2013” received 25 This report is structured to provide a summary for each April 2013 and replied by the Mill on 29 April 2013. Principle, together with details for selected indicators. The assessment was based on random samples and therefore Criterion 1.2: Management documents are publicly nonconformities may exist that have not been identified. available, except where this is prevented by commercial confidentiality or where disclosure of information would Mr Aryo Gustomo, BSi RSPO Scheme Manager, has reviewed result in negative environmental or social outcomes. this report for conformance with BSi Procedures and the RSPO Certification System requirements. The Mill and Estates have maintained up to date copies of all of the documents listed under Criterion 1.2 and these are publicly available upon request, in accordance with Sime 2.3 Stakeholder Consultation Darby policy.

Internal and external stakeholders were consulted to obtain PRINCIPLE 2: Compliance with Applicable Laws and their views on SOU20 environmental and social performance Regulations and any issues of concern that they may have. External stakeholders were interviewed at their premises where Compliance with legal requirements was confirmed by practical or they were invited to the Mill or the Estate. review of records and examination of reports on internal Internal stakeholders were interviewed in groups in the audits of the SOU20 Mill and Estates, such as Environmental, workplace or at their housing. Company officers were not Factories and Machinery and Labour Laws. Inspection of present at any of the meetings. A list of stakeholders records and documents confirmed all of the SOU20 licences contacted is included at Appendix D. were current. The BOD of treated mill effluent and the smoke density of gaseous emissions from the mill boiler

Prepared by BSi Group Singapore Pte Ltd for Sime Darby Plantation Sdn Bhd (SOU20) Public Summary Report – RSPO Annual Surveillance Assessment (ASA3) Page 8 were consistently within the licence limits, as confirmed by Observation 01– The Labour Department approval of the laboratory tests and those done independently by extension to the number of overtime hours worked at Chaah consultants. Checks of a sample of pay records and Mill each month will expire on 30.11.2013. It is important to interviews of staff and workers showed compliance with ensure sufficient time to complete the renewal process – Labour Laws. The Estates are on Government leased land refer Section 3.2 Page 15. and there were no disputes over land ownership. The Mill collected samples of raw water from the reservoir

and of treated drinking water from the housing and the Criterion 2.1: There is compliance with all applicable local, report by Nalco Analytical Resources (Report No 643892) national and ratified international laws and regulations. confirmed the results for physico-chemical quality were in compliance with the Malaysian Drinking Water Quality Legal compliance was assessed by examining a sample of Standard. The Mill treated water supply was sampled for records, documents and reports and inspection of facilities pesticides on 04 January 2013 and for microbiological testing and processes. This confirmed the findings of Sime Darby on 12 April 2013 with the results (Test Report No ML internal audits, for example the Mill Advisor during his visit 093/13) confirming compliance with the Malaysian Drinking 17-19 January 2013. Examples of documents are listed Water Quality Standard. The Department of Health, Batu below. Pahat sampled the Estate water supplies on 17 January 2013 Laboratory analyses of monthly samples of treated Mill and the laboratory results confirmed compliance with the effluent confirmed the BOD content meets licence physico-chemical and microbiological requirements of the requirements for land application for the previous twelve Malaysian Drinking Water Quality Standard. months (Figure 5). The Mill and Estates hold a legal register that lists the legislation and Permit requirements and conditions for 2000 OSHAS, Environment and Labour. In addition, the Mill and Estates hold copies of the applicable legislation. 1500 The most recent DOSH visit to the Mill was on 25 March 1000 2013 to inspect the recently installed replacement steriliser. The Officer noted several items requiring improvement, such 500 as the Back Pressure Receiver for the boiler. The Mill has an action plan to address the issues raised. A DOE Officer 0 visited the mill on 15 January 2013 to collect a sample of

treated effluent and did not identify any significant issues

Ot

Jul

Jun

Sep Feb

Dec

Aug

Nov Mar

May requiring corrective action. The DOE Licence No 002153 is Jan-13 Apr-12 current to 30 June 2013 and includes desludging of an

effluent pond. Figure 5: BOD (mg/L) of Treated Mill Effluent April 2012 – March 2013 Criterion 2.2: The right to use the land can be demonstrated and is not legitimately contested by local The maximum BOD during the previous year was 1,435 mg/L communities with demonstrable rights. recorded in July 2013, when desilting of a pond was being The Estates are on Government Leased land and the SOU20 carried out and is significantly less than the limit for land operations are consistent with the terms of the land titles, application of 5,000 mg/L. Mill boiler emissions were tested which is for oil palm. six-monthly by PAC Testing & Consulting Sdn Bhd, with the most recent visit 26 February 2013 (Report PAC-AE-130218) Inspection of a sample of boundary stones at Sungai and the level of dust particulate was within compliance with Simpang Kiri and Chaah Estates confirmed that these have Regulation 25 of the Malaysian Environmental Quality (Clean been marked clearly with a red and white post and were Air) Regulations, 1978. The Mill is linked to the DOE via the being maintained. continuous emissions monitoring system. Review of data Inspection of records and interview of local kampung indicated compliance with the smoke emission limits. The representatives indicated that there are no current or recent smoke density meter was calibrated by ST Tech Engineering land disputes. Sdn Bhd on 11 December 2012. The Mill and Estates hold copies of licences for plant and Criterion 2.3: Use of the land for oil palm does not equipment that had been renewed and were current at the diminish the legal rights, or customary rights, of other users time of the assessment visit, for example, Boiler Number 1 without their free, prior and informed consent. Certificate expiry 25 December 2013. Copies of licences for All of the Estates operations are on Government Leased drivers, boiler attendants and engineers are held on land. The Estates do not restrict access by smallholders or personnel files. the public to the land, except for the transport of FFB. The Mill has an approval letter from Labour Department SOU20 allows smallholders to graze their cattle within the oil dated 22 November 2010 for extension of overtime hours palms of the Estates near their smallholdings, although this current to 30 November 2013. Inspection of a sample of Mill practice is discouraged because the cattle cause damage to and Estates pay records confirmed overtime hours were creek banks. within the approved limit. Pay records also confirmed pay and conditions complied with employment terms and conditions current at the time of the Assessment visit.

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PRINCIPLE 3: Commitment to Long Term Economic and PRINCIPLE 4: Use of Appropriate Best Practices by Growers Financial Viability and Millers SOU20 has continued to improve the palm yields through The Mill and Estates have implemented the Sime Darby the rehabilitation programme at Sungai Simpang Kiri and Policies and SOPs for best practices. The Mill Advisor and implementation of better field practices at Chaah Estate. the Estate Advisor programmed visits provide review and The Mill has achieved a slightly increased OER of 21·49% assessment of compliance with the company policies and over the 2012/13 year by means of improved FFB quality practices and make recommendations for improvement of and better operational control in processing. production and environmental performance.

Overall, field practices appeared consistently implemented Criterion 3.1: There is an implemented management plan and FFB yields have continued to increase slightly at the that aims to achieve long-term economic and financial three estates. The improved yields are the result of viability. emphasis on adhering to SOPs and the management plan for The Estates and Mill have Annual Operational and Capex the mill and estates. These include the rehabilitation of Budgets that are projected for the next four years – 2012/13 palms at Sungai Simpang Kiri and maintenance of the though to 2015/16. The budgets include performance required level of field conditions. The company has objectives and targets related to production, efficiency and continued to carry out training and enforcement of health quality. and safety standards in order to reduce further the risk of injury to workers. The major flooding at Sungai Simpang Kiri Estate in 2007 resulted in extensive damage and the loss of many palms. The rehabilitation program carried following the flooding is Criterion 4.1: Operating procedures are appropriately now resulting in improved average annual FFB yield (Figure documented and consistently implemented and monitored. 6), which reached almost 20 tonnes per hectare in 2012/13. The Mill has maintained and holds a copy of SOPs issued 1 Chaah and North Labis Estates continued to achieve slightly November 2008 covering all work stations. In addition, the improved FFB yields over the previous year. Mill has prepared Work Instructions in Bahasa Malaysia, which are displayed at each work station.

Chaah North Labis Simpang Kiri The Estates holds copies of the Sime Darby SOPs issued 2008 and have translated selected SOPs, such as harvesting and 30 field upkeep, into Bahasa Malaysia. 25 The Mill Advisor visits approximately quarterly, with the most recent visit 17-19 January 2013. The Mill Advisor 20 raised an issue for the need to sell the large amount of scrap steel that had accumulated. The Estate Plantation Advisor’s 15 most recent visit to SOU20 Estates was in December 2012. 10 The Estate Managers have responded to issues raised in the Advisor’s reports. 2006 2007 2008 2009 2010 2011 2012

Figure 6: Average Annual FFB Yield (t/ha/yr) Criterion 4.2: Practices maintain soil fertility at, or where possible improve soil fertility to, a level that ensures optimal and sustained yield. The Mill OER (Figure 7) shows a sharp rise in efficiency in Sime Darby Agronomy Section of R&D Department carried 2008/09 when Sime Darby took over the management of out annual inspection of the palms and leaf sampling at the SOU20 and changed the FFB ripeness standard and provided SOU20 Estates in February 2012 to monitor nutrient status high emphasis on FFB quality, timely evacuation of the crop and to recommend the annual fertiliser program for and loose fruit collection. The mill achieved an OER of 2012/13. 21·49% over the 2012/13 year, which was a slight improvement over the previous year. Criterion 4.3: Practices minimise and control erosion and degradation of soils. 23 Erosion control practices are documented in the Sime Darby 22 Agricultural Reference Manual. At Chaah Estate, all of the 21 land is flat except for 4% of the area, which is hilly. North Labis Estate has terracing on approximately 30% of the area. 20 Inspection confirmed erosion control practices were 19 implemented, including U-shaped stacking of pruned fronds, 18 silt pits and terracing of slopes. Groundcover vegetation generally has improved significantly at the Estates following the cessation of using CDA spray equipment and using knapsack sprayers for palm circles.

Figure 7: Average Annual OER (%)

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Criterion 4.4: Practices maintain the quality and Stockholm or Rotterdam Conventions, growers are actively availability of surface and groundwater seeking to identify alternatives and this is documented. Inspection of buffer zones confirmed these were correctly The quantity of pesticide and treatment required is demarcated and vegetation groundcover generally was documented in Section 16·5 of the Sime Darby Agricultural good. Observation 02 – At Chaah Estate, the sample of Reference Manual. The Estates have continued to display at palms inspected along Sungai Sayong showed consistent the pesticide mixing area the quantity of pesticide to be protection of the buffer zone, but a small stream near the measured for each spray application. Club, showed evidence of some palm circles sprayed within Observation 04 – At Chaah Estate, the accuracy of the buffer zone boundary – refer Section 3.2 Page 15. measuring pesticide concentrate could be improved by using The Mill collects water samples quarterly upstream and laboratory grade plastic measuring cylinders to eliminate downstream of the Mill. The most recent laboratory results parallax error – refer Section 3.2 Page 15. available were for the January 2013 sampling (Report No IE Inspection of the Pesticides Stores and records confirmed 18/2013), which indicated no significant difference in water the only pesticides used are registered by the Pesticides quality parameters between upstream and downstream Board. The Estates have current permits for the use of sites. Chaah and Simpang Kiri Estates share a water Mathamidophos for control of bagworm, for example Chaah sampling program and the most recent samples were Estate Permit# JH/METHA(GL)/13/50 dated 25 March 2013. collected 24 April 2013. Inspection of the Pesticide Stores confirmed the storage The Mill average annual water usage (Figure 8) was reduced meets regulatory requirements, for example, security, significantly to 1·27 t/t FFB in 2012/13 by ceasing the ventilation, signage, lighting, spill containment, separation practice of using water for daily cleaning of floors. Instead and labeling of chemicals. Observation 05 – Two instances of sing water to wash the floors, they are swept using were found of pesticide not being stored in accordance with brooms during the week and the use of water is restricted to the applicable regulations: At Chaah Estate there was an the shut-down for maintenance at the weekends. unlabelled 20 litre container stated contain a mixture of Observation 03 – The Mill Water Treatment Plant Operator diesel and malathion; at Simpang Kiri Estate two containers had not reported a badly leaking gland seal on Transfer of pesticide were in the “General Store” – refer Section 3.2 Pump #1, which indicates lack of his awareness of the need Page 15. to prevent water wastage – refer Section 3.2 Page 15. Inspections confirmed the labelling of all chemicals and

Work Instructions is in Bahasa Malaysia. Work Instructions are displayed at the pesticide storage and use areas. 1.7 1.6 The sprayers undergo monthly medical checks at the Estates 1.5 clinic, for example the most recent at Chaah Estate was 1.4 during April 2013 for 12 operators. CHRA annual medical 1.3 surveillance is carried out by a DOSH registered doctor, for 1.2 example, for 9 Simpang Kiri pesticide operators on 1.1 21/02/2013 at Pathlab – Kluang, Johor and 23 Chaah 1 pesticide operators on 22 April 2013 at Klinik Medic & Surgeri, Segamat. Inspection of records confirmed all operators were fit to work with pesticides.

Criterion 4.7: An occupational health and safety plan is Figure 8: Annual Mill Water Usage (t/t FFB) documented, effectively communicated and implemented. The Health and Safety Policy that was reviewed and re- issued by Top Management April 2011 was displayed in Mill Criterion 4.5: Pests, diseases, weeds and invasive and Estates Offices. introduced species are effectively managed using appropriate Integrated Pest Management (IPM) The HIRAC that was previously prepared in 2008 was techniques. reviewed for the Mill work-stations Section tasks but did not identify any changes to the risks. The Estates also have SOU20 has continued expanding the plantings of beneficial reviewed the HIRAC, for example Chaah on 18 January 2013, plants along roadsides with Turnera subulata, Cassia although there was no change to the risk assessment. cobanensis and Antigonon leptopus well established. The Estates also have installed Barn Owl boxes and the twice- The Mill Safety Training Programme is documented to show yearly census at Chaah Estate, for example, showed 24% the schedule of training topics, such as fire fighting, fire drill occupancy. This low occupancy rate is due to the close and first aid. The Estates have a programme for scheduling proximity to the Ma’okil Forest Reserve. of training awareness topics each month for the 2012/13 year. Records were available showing the status of the Criterion 4.6: Agrochemicals are used in a way that does program. not endanger health or the environment. There is no The Mill maintains records of Safety Training, for example 5 prophylactic use of pesticides, except in specific situations Mill staff attended Fire Drill Training on 19 March 2012 at identified in national Best Practice guidelines. Where Sungai Simpang Kiri. Records of Mill training and interview agrochemicals are used that are categorised as World of workers indicated understanding of safety. The Estates Health Organisation Type 1A or 1B, or are listed by the holds records of training including the topic, attendees and

Prepared by BSi Group Singapore Pte Ltd for Sime Darby Plantation Sdn Bhd (SOU20) Public Summary Report – RSPO Annual Surveillance Assessment (ASA3) Page 11 signatures, for example, training for 10 workers on Trunk PRINCIPLE 5: Environmental Responsibility and Injection for control of Bagworm, conducted on 29 August Conservation of Natural Resources and 2012 at Chaah, including demonstration of correct wearing Biodiversity of PPE and safe chemical handling. SOU20 has revised the environmental aspects and impacts Inspection of herbicide spraying confirmed sprayers were register with the main improvements targeting the working safely and in accordance with product precautions. reduction of water usage and non-renewable energy consumption. The company has continued to maintain The Mill standard PPE issue is safety shoes, helmet and employees’ awareness of HCVs and the need for the hearing protection, with station specific issue of gloves, dust protection of native fauna. mask, eye protection and high visibility vest. Records are Waste management generally was well implemented with maintained of PPE issued to individuals including signature consistent recycling of palm by-products to the field, of recipient. The Estates issue to sprayers an apron, eye although improved control of fibre and ash storage adjacent protection, respirator, gloves and rubber boots to the mill boiler needs improvement. The small sanitary Inspection of operational areas at the Mill and spraying and landfill at each Estate was appropriately managed and harvesting tasks in the field confirmed appropriate PPE was scheduled wastes were stored securely and sold to a supplied and being worn correctly. licensed recycler. The Mill Supervisor is designated OSH coordinator. The The zero burning policy appeared consistently implemented Estates Field Supervisor is OSH Coordinator. and no evidence was found of fire being used for waste disposal. Records confirmed the Mill and Estates hold quarterly OSH meetings, for example, the Mill recently held an OSH Criterion 5.1: Aspects of plantation and mill management, meeting on 04 April 2013 with 16 attendees. Topics of including replanting, that have environmental impacts are discussion included safety inspection and issues related to identified, and plans to mitigate the negative impacts and various work stations. The Estates hold safety meetings promote the positive ones are made, implemented and quarterly with the most recent for Chaah held on 17 April monitored, to demonstrate continuous improvement. 2013, attended by 24 persons including staff, workers and contractor representatives. Information from Safety The Mill and Estates have reviewed the Environmental Committee Meetings is communicated to workers at muster Aspects and Impacts Register in August 2012. Following the briefings. installation and operation of the new boiler, the Mill has focused on reducing raw water used in the mill and over the The Mill and the Estates’ Emergency Response Plans past year has achieved significant reduction. (2012/13) were reviewed 05 July 2011 and are based on the originals prepared in 2008 and include all of the required Criterion 5.2: The status of rare, threatened or endangered elements. Chaah Estate revised the Emergency Response species and high conservation value habitats, if any, that Plan in August 2012 and engaged the local Fire Department exist in the plantation or that could be affected by to carry out emergency training and fire fighting on 29 plantation or mill management, shall be identified and September 2012. their conservation taken into account in management plans and operations. First Aid Training is carried out by the Hospital Assistants, for example on 4 April 2013 for 19 Chaah Estate staff and Field inspections confirmed riparian buffer strips were workers. Observation 06 – There was no record of First aid clearly demarcated and the vegetation was being training being carried out for the Mill employees since 2009 – maintained, especially along the riparian corridor linking the refer Section 3.2 Page 15. Ma’okil Forest reserve that forms a border with Chaah Estates and the Simpang Kiri River. Inspection confirmed First Aid Kits were located at work stations, the supervisor’s office and the maintenance Signs have been maintained at the entrance to the Estates workshop in the Mill and were appropriately stocked. The warning of protection of HCVs and prohibiting hunting, the Estates have distributed First Aid Kits to Mandores and taking of fauna and gathering of vegetation. Supervisors. Malaysian staff and workers are covered by SOCSO Criterion 5.3: Waste is reduced, recycled, re-used and Insurance. Mill foreign workers are covered by RHB disposed of in an environmentally and socially responsible Insurance Berhad under a Master Policy current to 30 June manner. 2013. The Mill and Estates have continued to apply the Waste Criterion 4.8: All staff, workers, smallholders and Management Plan principles, which detail the action to be contractors are appropriately trained. taken in relation to each type of waste generated. Inspection of the mill indicated the majority of the solid The Mill and Estates have informal briefings for staff and wastes were well controlled, but improvement was needed workers on training topics during muster, which is for temporary storage of fibre and boiler ash. A scheduled supplemented with on-the-job instruction. The Mill and waste store is appropriately designed for secure storage of Estates Annual Training Plans have been revised for the spent lubricating oil, lead acid batteries and used chemical coming year 2012/13 that lists the schedule of training. containers. Review of records found that the stocktake was Records of all Mill and Estates training are maintained on file kept up to date. for individuals including topic and signature of attendees. CR08 – A nonconformity was assigned because follow-up of Observation 07 identified during ASA2 found no action had

Prepared by BSi Group Singapore Pte Ltd for Sime Darby Plantation Sdn Bhd (SOU20) Public Summary Report – RSPO Annual Surveillance Assessment (ASA3) Page 12 been taken to prevent ash and fibre from entering the drain. situation, as identified in the ASEAN guidelines or other The Observation was upgraded to a Nonconformity against regional best practice. this Minor Compliance Indicator – refer Section 3.2 Page 14 SOU20 has adopted the Sime Darby Policy on zero burning. for details. Inspections of replanted areas and workplaces at the Mill The Mill has continued to engage Kualiti Alam (DOE Licence and Estates and housing areas did not find any evidence of Nos: 000211 – 000215) for collection and disposal of fire being used for waste disposal. scheduled wastes. The Mill and Estates maintain records of scheduled waste consignments, for example, scheduled Criterion 5.6: Plans to reduce pollution and emissions, waste was collected by Kualiti Alam on 27 April 2013, including greenhouse gases, are developed, implemented Manifest Serial numbers 0043164-0043170, vehicle and monitored. registration #JEN5169 refers. The Estates have continued to Inspection of records confirmed the Mill has continued to use G-Planter for collection of used pesticide containers and operate with boiler smoke emissions within the Malaysian a collection was made from Chaah Estate on 03 May 2013, environmental quality limits. The estates have optimized Lorry Number JLW 1008. the harvesting and transport of FFB to the Mill, which is an Medical wastes from the Clinics are disposed in appropriate important factor in minimizing greenhouse gas emissions. manner, for example, Chaah Clinic has a verbal agreement The mill has targeted the reduction of water usage, which in with IOI to transfer Chaah clinic wastes to IOI for disposal to turn will reduce the quantity of wastewater requiring Pantai Medivest. An appropriate chain of custody was treatment and disposal. available for the most recent transfer to IOI on 22 March The Estates Pollution Prevention Plan continues to focus on 2013 and was “signed over” by Sime Darby and “signed in” control of point sources of pollution to ensure the control by IOI together with their company stamp. systems are maintained. Prevention of soil erosion and The Mill and Estates maintain records of monthly scheduled discharge of sediment in rainfall runoff also is a priority and waste stocktakes and copies are held of the manifests for significant improvement in groundcover was achieved since collection of scheduled wastes. Materials that are not the ASA2 site visit. suitable for recycling or re-use are disposed in a small, purpose-built landfill at each Estate. PRINCIPLE 6: Responsible Consideration of Employees and Inspection confirmed the landfills were appropriately of Individuals and Communities by Growers located and well maintained, consistent with municipal and Millers landfill requirements, with a cover of soil placed on recently SOU20 has maintained the system of open communications disposed waste. with its employees and the local community representatives. The Mill keeps records of the quantities of crop residues However, information from stakeholder consultation had transferred to the Estates (EFB, Boiler Ash and POME) and not been used to update the social action plan. The applied to the palms. company has continued to operate the Joint Consultative Committee for meetings with worker representatives. The The Estates maintain a programme for EFB application and system for addressing complaints and grievances appeared records on a map the areas receiving material. POME is to be effective and requests for housing repairs continued to recycled to the field at Chaah Estate using a system of dominate the register. furrows for land application. The company’ pay and conditions for staff and workers were Criterion 5.4: Efficiency of energy use and use of renewable consistent with Labour Laws. Interviews of staff and energy is maximised. workers did not identify any incident relating to discrimination or minimum age of workers. The company The mill continued to report renewable and non-renewable has a good relationship with contractors and the local energy usage to Head Office on a monthly basis (Figure 9). community. The use of non-renewable energy remained elevated due to the low utilisation of the mill. Criterion 6.1: Aspects of plantation and mill management, including replanting, that have social impacts are identified Renewable Non-Renewable in a participatory way, and plans to mitigate the negative impacts and promote the positive ones are made, 20.00 implemented and monitored, to demonstrate continuous 15.00 improvement. 10.00 5.00 The SOU20 operations have remained unchanged since the 0.00 Initial Certification and the SIA document continues to provide an appropriate representation of the socio- economic setting. The Social action Plan had been prepared in January 2013, but had not used information from the stakeholder consultation process. CR07 – Due to insufficient corrective action being Figure 9: Mill Energy Use (kWh/t CPO) implemented for the Social Action Plan, the Nonconformity assigned to Minor Compliance Indicator 6.1.3 during ASA2 Criterion 5.5: Use of fire for waste disposal and for was raised to a Major Nonconformity – refer Section 3.2 preparing land for replanting is avoided except in specific Page 14 for details.

Prepared by BSi Group Singapore Pte Ltd for Sime Darby Plantation Sdn Bhd (SOU20) Public Summary Report – RSPO Annual Surveillance Assessment (ASA3) Page 13

Criterion 6.2: There are open and transparent methods for The minimum working age is 18 under the Labour communication and consultation between growers and/or Ordinance. Inspections and checks during the ASA3 did not millers, local communities and other affected or interested find any under-age worker or children at workplaces in the parties. Mill and the Estates.

Interviews of stakeholders indicated they had open Criterion 6.8: Any form of discrimination based on race, communications with the Mill and Estates. Records were caste, national origin, religion, disability, gender, sexual maintained of communications via letters and e-mails. orientation, union membership, political affiliation, or age,

is prohibited. Criterion 6.3: There is a mutually agreed and documented system for dealing with complaints and grievances, which is The Social Policy that was reviewed and re-issued by Top implemented and accepted by all parties. Management in April 2011 includes a statement on anti- discrimination and is displayed at Mill and Estates Offices SOU20 has maintained the system for recording complaints and on notice boards at muster areas. Interviews of Staff and grievances. There was no complaint raised by internal and Workers and inspection of a sample of pay records or external stakeholders. The complaints in the register during ASA3 did not find any evidence of discrimination. related to requests for repairs to the housing and these were being addressed in a timely manner. Criterion 6.9: A Policy to prevent sexual harassment and all

other forms of violence against women and to protect their Criterion 6.4: Any negotiations concerning compensation reproductive rights is developed and applied. for loss of legal or customary rights are dealt with through a documented system that enables indigenous peoples, A Policy on the Prevention of Sexual Harassment is local communities and other stakeholders to express their documented in the Social Policy reviewed and was re-issued views through their own representative institutions. by Top Management April 20011. The policy is displayed prominently at the mill and estates on notice-boards. All of the land is freehold title held by Sime Darby and there Interview of female staff and workers during ASA3 has not been any claim made in relation to land. confirmed Gender Committees continue to operate and

there are no outstanding issues. Criterion 6.5: Pay and conditions for employees and for employees of contractors always meet at least legal or Criterion 6.10: Growers and mills deal fairly and industry minimum standards and are sufficient to provide transparently with smallholders and other local businesses. decent living wages. SOU20 does not purchase crop from smallholders or any Pay and conditions are documented in MAPA/AMESU outside suppliers. Agreement and MAPA/NUPW Field and Other General Employees and Fringe Benefits Agreement. Interview of Two of the contractors interviewed had worked with SOU20 workers (local and foreign) confirmed their understanding of for more than 10 years. They confirmed they understood pay and conditions of employment. the contracts terms and conditions of employment and they did not have any issues. The company pays invoices in a Children travel by private bus to local schools (primary timely manner. Taman Desa Temu Jodoh approximately 7 km) and

(secondary Chaah approximately 18 km) and the company Criterion 6.11: Growers and millers contribute to local subsidises 50% of transport costs. Staff, Workers and their sustainable development wherever appropriate. families receive free medical treatment at the company clinics. Sime Darby provides a Crèche free for staff and SOU20 makes donations to local schools and supports places worker children. Electricity is from the Government supply of worship for religious ceremonies, which is appropriate for and provided to all houses. Water is provided and treated the socio-economic setting. by the company and supplied to all houses. PRINCIPLE 7: Responsible Development of New Plantings Criterion 6.6: The employer respects the right of all personnel to form and join trade unions of their choice and SOU20 has not carried out any new oil palm developments to bargain collectively. Where the right to freedom of and there are no plans for expansion of plantings. Principle 7 association and collective bargaining are restricted under is not applicable to this Assessment. law, the employer facilitates parallel means of independent and free association and bargaining for all such personnel. PRINCIPLE 8: Commitment to Continuous Improvement in Key Areas of Activity SOU20 recognises the rights of workers to be members of a union. The Mill has a Joint Consultative Committee where SOU20 has continued to make progress with improving the workers representatives are members. Minutes of meetings efficiency of production which is important for overall are available and include the attendance list and topics sustainability. The Mill achieved OER of 21.49%has discussed. There was no meeting held with NUPW officials remained above 21% and FFB yields have improved at Chaah during the past year. and Sungai Simpang Kiri Estates.

Environmental and social issues are being addressed Criterion 6.7: Children are not employed or exploited. appropriately and internal audits provide feedback on Work by children is acceptable on family farms, under adult performance against company policies and standards. The supervision, and when not interfering with education company has maintained open dialogue with internal and programmes. Children are not exposed to hazardous external stakeholders and there are no unresolved issues working conditions. with local communities.

Prepared by BSi Group Singapore Pte Ltd for Sime Darby Plantation Sdn Bhd (SOU20) Public Summary Report – RSPO Annual Surveillance Assessment (ASA3) Page 14

Criterion 8.1: Growers and millers regularly monitor and Action plan – The Estate will inform the JKKK when job review their activities and develop and implement action vacancies arise. This will be through monthly JKKK meetings plans that allow demonstrable continuous improvement in where an agenda on job vacancies will be added. key operations. A meeting with Internal Stakeholders was also held on 2nd SOU20 has continued to expand the Integrated Pest May 2013 with issues raised as follows: Management such as beneficial plants. However it was Workers complained that housing repairs are not carried out necessary to use Class 1A chemicals for treatment of an promptly. outbreak of bagworm, the first time this has been necessary Action plan – To inform foreman and his helper to repair the for several years. houses as soon as possible once the office receives a request from the worker The Environmental Improvement Plans continue to focus on the reduction of water usage at the Mill, and significant Workers made the suggestion to have some sports activities improvement was achieved in 2012/13. Soil conservation every weekend. continues to be a priority at the Estates for protection of Action plan – Management will arrange some sporting water quality. The new large steam turbine at the Mill is activities for workers. helping reduce the consumption of non-renewable fuel. Chaah & North Labis Estates Significant improvement in air quality has been achieved following the commissioning of the new mill boiler. Meeting with internal stakeholders will be held between cattle owners, contractor and estate residents to solve the The Social Action Plan continues to focus on improvements issues raised by estate residents regarding cattle roaming for resident workers and their families. Houses are being the Chaah’s linesite (the cattle owner will be required to upgraded and linesite roads have been sealed. reduce the number of cattle in the estate to zero by end of 2013). Action Plan – All issues raised are to be captured in the Social 3.2 Identified Nonconformities and Noteworthy Positive Management Plan. and Negative Observations (ASA3) The following evidence was provided by SOU20: The Nonconformity CR07 assigned during ASA2 was upgraded to a Major Nonconformity. Observation 07 1. Minutes of Meetings with Stakeholders – Appendix E identified during ASA2 was upgraded to a Nonconformity (Document 1) (CR08). Six (6) Observations/Opportunities for improvement 2. Attendance Lists of Meetings with stakeholders – were identified. SOU20 has prepared a Corrective Action Appendix E (Document 2) Plan for addressing the identified Nonconformities, which BSi has reviewed and accepted. 3. Revised Social Action Plans – Appendix E (Document 3)

The BSi Assessors considered the corrective actions and the CR07 assigned during ASA2: Minor Compliance Indicator objective evidence provided were satisfactory and 6.1.3 – A timetable with responsibilities for mitigation and appropriate. monitoring is reviewed and updated as necessary The Nonconformity was closed 05/07/2013 Due to insufficient corrective action being implemented for the Social Action Plan, the Nonconformity assigned to this CR08: Minor Compliance Indicator 5.3.2 Having identified Minor Compliance Indicator during ASA2 was raised to a wastes and pollutants, an operational plan should be Major Nonconformity. developed and implemented, to avoid or reduce pollution. Meetings should be held with both Internal and External A nonconformity was assigned because follow-up of Stakeholders (local communities) to identify any issues of Observation 07 identified during ASA2 found no action had concern and an Action Plan then be prepared in consultation been taken to prevent ash and fibre from entering the drain. with the affected stakeholders to address the issues raised. The Observation was upgraded to a Nonconformity against Chaah and Sungai Simpang Kiri Estates had met with this Minor Compliance Indicator. “external” stakeholders but neither had met with “internal” Corrective Actions: stakeholders. As a consequence, issues raised previously by The leakages at the boiler body that resulted in ash coming “internal” stakeholders, such as cattle roaming the linesite at out have been patched by the maintenance team. Chaah Estate, had not been addressed. North Labis Estate has not met with “internal” or “external” stakeholders and Action Plan – Damaged drain covers shall be repaired and the Action Plan has not been updated since March 2012. replaced to prevent debris from entering drain. Monitoring of the boiler ash area to be conducted by the Foreman Corrective Actions: weekly. Sungai Simpang Kiri Estate BSi Assessors considered the corrective actions satisfactory nd and appropriate and progress toward resolution of the issue Meeting with External Stakeholders was held on 2 may will be followed up during the next Annual Surveillance 2013 – Issues raised as below: Assessment (ASA4). Local people in Kg Sungai Sepakat advised they are not made aware of any job vacancies at the Estate

Prepared by BSi Group Singapore Pte Ltd for Sime Darby Plantation Sdn Bhd (SOU20) Public Summary Report – RSPO Annual Surveillance Assessment (ASA3) Page 15

Observations/Opportunities for Improvement (ASA3) A nonconformity was assigned because Inspection of Chaah Estate housing found several cages of spotted dove, which 01 (2.1.1) Chaah Mill Labour Department approval of were likely to have been captured in the Estate. extension to the number of overtime hours worked each ASA3 Findings: All housing areas visited during ASA3 found month will expire on 30.11.2013. It is important to no evidence of caged “spotted dove”. ensure sufficient time to complete the renewal process. The Nonconformity was closed 03 May 2013 02 (4.4.1) At Chaah Estate, the sample of palms inspected along Sungai Sayong showed consistent protection of CR07: Minor Compliance Indicator 6.1.3 – A timetable with the buffer zone, but a small stream near the Club, there responsibilities for mitigation and monitoring is reviewed was evidence of some palm circles sprayed within the and updated as necessary. buffer zone boundary. A Nonconformity was assigned because the Social Action

Plans had not been reviewed or updated at either the Mill or 03 (4.4.5) The Mill Water Treatment Plant Operator had not the two Estates visited. Meetings had been held with some reported a badly leaking gland seal on Transfer Pump #1, stakeholders, but not specifically for the purpose of receiving which indicates lack of his awareness of the need to input on social issues and these were not documented. prevent water wastage. ASA3 Findings: Upgraded to a Major Nonconformity – refer 04 (4.6.1) At Chaah Estate, the accuracy of measuring Section 3.2 Page 14 for details. pesticide concentrate could be improved by using laboratory grade plastic measuring cylinders to eliminate parallax error. Observations/Opportunities for Improvement

05 (4.6.3) Two instances were found of pesticide not being 01 (4.3.2) Inspection of field conditions and spraying at stored in accordance with the applicable regulations: At North Labis Block 2000A indicated the incorrect Chaah Estate there was an unlabelled 20 litre container technique was being used when operating CDA sprayers, stated contain a mixture of diesel and malathion; at which may negatively affect groundcover. Simpang Kiri Estate two containers of pesticide were in ASA3 Findings: Inspection showed groundcover had the “General Store”. generally improved. Spraying had been ceased at previously identified areas of bare soil to allow the groundcover 06 (4.7.1) There was no record of First aid training being vegetation to become re-established. carried out for the Mill employees since 2009. 02 (4.7.1) North Labis workshop oxy-acetylene safety goggles were damaged and unsuitable for use. When Noteworthy Positive Components this was pointed out by the assessor, a replacement set was purchased immediately from the local hardware  Mill OER has increased to 21·49%. store. ASA3 Findings: The correct PPE for eye protection was  Mill water usage was reduced significantly. available at each of the workshops inspected, including North Labis.  FFB yields have increased at Chaah and Sungai Simpang Kiri Estates. 03 (4.7.1) The following minor safety improvements were noted for the Mill:  SOU20 has maintained open communication with local The Emergency Response Plan had not been updated to stakeholders. include recent (June 2012) management changes and revised list of Emergency Contacts; The oxy-acetylene pressure regulators were not fitted 3.3 Status of Nonconformities (Major and Minor) with “flash-back arrestors”. Identified during Previous Assessments ASA3 Findings: The Emergency Response Plan had been updated with the current members of the Team and contact details. The Mill had not yet purchased “flash-back The Nonconformities that were identified and “closed” arrestors” for installation on oxy-acetylene welding during previous assessments (CR01 – CR05) were followed equipment. up to check and confirm the implementation of corrective actions had been maintained and all Nonconformities 04 (5.3.2) At Chaah Clinic a quotation has been accepted remain closed. for Pantai Medivest (18/07/2011) to collect Clinic wastes, but no collection has occurred to date. Used “sharps” continue to be stored in appropriate Nonconformities Identified ASA2 and Closed ASA3 containers. The Estate has arranged with the Visiting Medical Officer to collect and transfer the clinic wastes CR06: Minor Compliance Indicator 5.2.3 – Evidence of a to his registered Clinic for disposal to a registered commitment to discourage any illegal or inappropriate Scheduled Waste Facility. hunting fishing or collecting activities, and developing ASA3 Findings: SOU20 now has a verbal agreement with IOI responsible measures to resolve human wildlife conflicts. to transfer all clinic wastes to IOI for disposal to Pantai Medivest. An appropriate chain of custody was available for

Prepared by BSi Group Singapore Pte Ltd for Sime Darby Plantation Sdn Bhd (SOU20) Public Summary Report – RSPO Annual Surveillance Assessment (ASA3) Page 16 the most recent transfer to IOI on 22 March 2013 and was Company Response: Transport will be shared between the “signed over” by Sime Darby and “signed in” by IOI with their Mill and Chaah Estate. company stamp.

Workers asked why “long term” workers are not offered any 05 (5.3.2) At North Labis Estate, the landfill was incentives – they are paid at the same daily rate as “new appropriately located at a disused quarry, but could be recruits”. They also asked why previously “operators” improved by installing an earthen bund to prevent received more than other workers but with the new system rainfall runoff from entering the trench. minimum wage RM900 this no longer is so. The workers ASA3 Findings: Inspection confirmed an earth bund was in indicated they had raised these issues with management but place to prevent rainfall runoff from entering the landfill had not received any explanation. trench. Company Response: It will be explained to workers that the 06 (5.3.2) Chaah housing area was very neat and tidy but company uses the NUPW guidelines for preparing salaries rubbish has been discarded in a small area in the adjacent palms by the roadside. When this was pointed out the Estate cleared the area immediately. Residents stated that the issues with cattle roaming the ASA3 Findings: No evidence of discarded litter was observed linesite had not been resolved and was still a problem as the at any of the housing areas visited. cattle trampled/ate their vegetable and flower gardens. It was observed by the auditors that the adjacent Mill linesite 07 (5.3.2) The small drain adjacent to Boiler #3 had is fenced. evidence of ash entering the drain with rainfall runoff. Company Response: Meetings have been held between the Protection of water quality could be improved by Estate and the cattle owners to resolve this issue and the preventing runoff from entering the drain and/or cattle owners have committed to reducing the number of installing a sediment trap on the drain. cattle in the Estate to zero by the end of 2013. ASA3 Findings: No action had been taken to prevent ash and fibre from entering the drain. The Observation was upgraded to a Nonconformity (CR08) against this Minor The Chaah Estate Hospital Assistant stated that it would be Compliance Indicator – refer Section 3.2 Page 14 for details. beneficial for the Clinic to have an oxygen tank. Company Response: The Estate will request a budget 08 (5.3.2) At North Labis Estate workshop the drain in front allocation 2013/14 budget for purchase of an oxygen tank. of the workshop has inadequate capacity for collection of runoff and transfer to the pollution control device. ASA3 Findings: Inspection showed work was in progress to Sungai Simpang Kiri Estate foreign workers stated if they enlarge the drain capacity to cater for rainfall runoff. wish to return home prior to the end of their 3 year contract they have to pay a deposit to the company as insurance they will return. This issue was also raised during conversation 3.4 Issues Raised by Stakeholders with NUPW. The issues raised by stakeholders during ASA2 were followed Company Response: This is a new Sime Darby requirement up and found to have been actioned appropriately by the notified in a recent internal “Circular”. The SOU will carry company. out awareness to foreign workers giving explanation. The BSi Audit Team considered the SOU20 responses to the Issues Identified during ASA3 issues raised to be appropriate. The issues will be followed The majority of stakeholders had positive comments about up during ASA4 to check on progress and satisfactory SOU20. For the situations where stakeholders raised issues, resolution. the company’s response is stated below.

Foreign workers at the Mill and Sungai Simpang Kiri Estate 4.0 CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF indicated housing repairs may not be carried out in a timely INTERNAL RESPONSIBILITY manner. Repairs are registered on a “form” but workers stated that the time taken to carry out repairs is lengthy 4.1 Date of Next Surveillance Visit with some workers completing several “forms” for the same repair. Inspection of the Mill Register shows “In Progress” The next Surveillance Assessment (ASA4) will be scheduled and “Done” but there is no information of when the repair within twelve months of RSPO approval of continuation of was completed and what was done. This is also highlighted Certification. in the Mill Social Action Plan. Company response: The system that is working effectively at Chaah Estate will be implemented at all locations.

Workers pay is credited to a bank account and some foreign workers are finding it difficult to travel to the bank as they have no transport. Sungai Simpang Kiri and Chaah Estates provide transport for workers for this purpose.

Prepared by BSi Group Singapore Pte Ltd for Sime Darby Plantation Sdn Bhd (SOU20) Public Summary Report – RSPO Annual Surveillance Assessment (ASA3) Page 17

4.2 Date of Closing Nonconformities (Major and Minor)

Table 5: Status of Nonconformities

CAR CLASS ISSUED STATUS

CR01 Closed Major 29/06/2009 2.1.1 06/07/2010 CR02 Closed Major 29/06/2009 4.4.1 06/07/2010

CR03 Closed Major 29/06/2009 5.2.2 06/07/2010

CR04 Closed Minor 29/06/2009 4.3.2 19/12/2011 CR05 Closed Major 12/07/2012 5.2.2 10/09/2012 CR06 Closed Minor 12/07/2012 5.2.3 03/05/2013

CR07 Minor 12/07/2012 Closed 6.1.3 Major 03/05/2013 05/07/2013 CR08 Minor 03/05/2013 “Open” 5.3.2

4.3 Sign-off of Surveillance Assessment Findings

Please sign below to acknowledge receipt of the assessment visit described in this report and confirm the acceptance of the assessment report contents including assessment findings.

Signed for on behalf of Signed for on behalf of Sime Darby Plantation Sdn Bhd (SOU20) BSi Group Singapore Pte Ltd

...... Mr Azhanizan Bin R Deni Mr Charlie Ross Senior Assistant in Charge BSI Lead Auditor Chaah Palm Oil Mill

Date: 18 July 2013 Date: 18 July 2013

Prepared by BSi Group Singapore Pte Ltd for Sime Darby Plantation Sdn Bhd (SOU20)

Appendix “A”

Supply Chain Assessment

Public Summary Report – RSPO Annual Surveillance Assessment (ASA3) SUPPLY CHAIN

APPENDIX A – SUPPLY CHAIN ASSESSMENT REPORT – SOU20 – SEGREGATION

CHAAH OIL MILL

Certified Mill Production – 01 April 2012 – 31 March 2013

MILL CAPACITY CSPO CSPK Chaah 30 t/hr 22,754 7,047

Physical Sales of Certified Mill Products (UTZ) – 01 April 2012 – 31 March 2013

CSPO CSPK 0 0

Sales of Sime Darby Certified Mill Products (GreenPalm Certificates) – 01 April 2012 – 31 March 2013

CSPO CSPK 834,365* 106,672*

* Greenpalm Certificates are the total overall for the 58 Sime Darby Mills. Certificates are not allocated to individual Mills Sime Darby Commodities Trading and Marketing Department sold GreenPalm Certificates on behalf of all the company mills, but these were not recorded against the individual mills. The monthly sales of CSPO and CSPK are summarised in the tables below. The total numbers of GreenPalm Certificates sold for CSPO and CSPK did not exceed the total production of CSPO and CSPK.

Sales of CSPO (GreenPalm Certificates) Sales of CSPK (GreenPlam Certificates) 01 April 2012 – 31 March 2013 01 April 2012 – 31 March 2013 TONNES/ Month BUYER (CPO) Month BUYER (PK) Tonnes CERTIFICATES Apr-12 GreenPalm Certificates 197,319 Apr-12 GreenPalm Certificates 20,000 May GreenPalm Certificates 35,088 May GreenPalm Certificates 1,700 Jun GreenPalm Certificates 218,694 Jun GreenPalm Certificates 34,085

Jul GreenPalm Certificates 32,065 Jul GreenPalm Certificates 25 Aug GreenPalm Certificates 11,263 Aug GreenPalm Certificates 0 Sep GreenPalm Certificates 134,406 Sep GreenPalm Certificates 15,077 Oct GreenPalm Certificates 14,537 Oct GreenPalm Certificates 595 Nov GreenPalm Certificates 52,165 Nov GreenPalm Certificates 18,715 Dec GreenPalm Certificates 59,525 Dec GreenPalm Certificates 8,633 Jan-13 GreenPalm Certificates 22,660 Jan-13 GreenPalm Certificates 3,228

Feb GreenPalm Certificates 6,068 Feb GreenPalm Certificates 888 Mar GreenPalm Certificates 50,575 Mar GreenPalm Certificates 3,726

TOTAL 834,365* TOTAL 106,672*

* Greenpalm Certificates are the total overall for the 58 Sime Darby Mills. Certificates are not allocated to individual Mills

Prepared by BSi Group Singapore Pte Ltd for Sime Darby Plantation Sdn Bhd (SOU20) Public Summary Report – RSPO Annual Surveillance Assessment (ASA3) SUPPLY CHAIN

Certified FFB Received Monthly - 01 April 2012 – 31 March 2013

Sungai Pengkalan Chaah North Labis Welch Total Month Simpang Kiri Bukit Estate Estate Estate FFB/Month Estate Estate Apr-12 4,037·86 0 2,729·00 0 0 6,766·86 May 4,523·63 0 2,899·10 0 0 7,422·73 Jun 4,307·86 0 2,706·16 0 0 7,014·02 Jul 6,436·12 0 3,405·58 0 0 9,841·7 Aug 7,378·43 0 3,565·00 0 0 10,943·43 Sep 8,586·83 0 3,884·84 448·67 0 12,920·34 Oct 7,856·21 254·44 3,316·87 208·47 385·70 12,021·69 Nov 7,131·68 1,411·36 2,872·41 0 0 11,415·45 Dec 7,172·77 2,419·21 1,859·35 0 0 11,451·33 Jan-13 4,466·73 915·92 1,920·18 0 0 7,302·83 Feb 4,010·68 694·92 1,418·67 0 0 6,124·27 Mar 2,181·61 145·16 1,018·07 0 0 3,344·84 TOTAL 68,090·41 5,841·01 31,595·23 657·14 385·70 106,569·49

Certified Company Details Sime Darby Plantation Sdn Bhd Contact Person: Mr Azhanizan Bin R Deni Management Unit SOU20 Senior Assistant in Charge Batu Pahat Johor Chaah Palm Oil Mill Muar Johor Darul Takzim Phone: +60 07-934 2454 MALAYSIA Fax: +60 07-934 1455 Email: [email protected] RSPO Membership No: 035-04(O)

Prepared by BSi Group Singapore Pte Ltd for Sime Darby Plantation Sdn Bhd (SOU20) Public Summary Report – RSPO Annual Surveillance Assessment (ASA3) SUPPLY CHAIN

RSPO Supply Chain Certification System for Sime Darby Plantation (SDP)

Certification Body Details BSi Group Singapore Pte Ltd Contact Person: Mr Aryo Gustomo (Co. Reg. 1995 02096-N) BSi RSPO Scheme Manager 1 Robinson Road Phone: +65 6270 0777 #15-01 AIA Tower Fax: +65 6270 2777 SINGAPORE 048542 Email: [email protected]

Prepared by BSi Group Singapore Pte Ltd for Sime Darby Plantation Sdn Bhd (SOU20) Public Summary Report – RSPO Annual Surveillance Assessment (ASA3) SUPPLY CHAIN

Summary The scope of this supply chain assessment is the Chaah Mill that is owned and operated by Sime Darby and uses the segregation mechanism. The assessment included site visits to Chaah Oil Mill and Chaah and Sungai Simpang Kiri Estates, review of records and interviews of staff. SOU20 had nil sales of Certified CPO and PK for the period 01 April 2012 – 31 March 2013. The assessor concluded SOU20 has implemented an appropriate management system for controlling the purchase of certified FFB, processing of same and sales. SOU20 maintains adequate records for confirming compliance with the RSPO supply Chain requirements and staff were able to demonstrate an appropriate knowledge of the requirements applicable to the Mill for Segregation mechanism.

Conclusion The SOU20 management system and records meet the requirements of the RSPO supply chain requirements, November 2011 for the Segregation Mechanism. Sime Darby Commodities Trading Marketing Department manages all sales of CPO and PK on behalf of the Sime Darby Mills. The system is computerised and when the Mill inputs the code for a Buyer, the RSPO Supply Chain information is generated automatically for the despatch note and the sales invoice. Inspection of documents confirmed that SOU20 maintains all applicable documentation required for verification of implementation of the RSPO Supply Chain Certification Standard : November 2011, for Palm Oil Mills - Module D: Segregation Mechanism.

Certificate Details Background to the Report

(a) Report authors Assessor Mr Charlie Ross, BSi RSPO Lead Auditor CB Management Representative Mr Aryo Gustomo, BSi RSPO Scheme Manager

(b) Previous assessments ASA2

(c) On-Site Visits Visit Itinerary Thursday 2 May 2013 – Chaah Mill – Opening Meeting held at Mill Meeting Room; Weighbridge Station; examined weighbridge records; daily records of FFB deliveries, CPO and PK production; CPO Bulk Tank and PK Silo records; shipments of CPO and PK. Closing Meeting Friday 3 May. People consulted: Azhanizan Bin R Deni (Mill Senior Assistant in Charge); Ahmad Ridha (Assistant Engineer); Weighbridge Operator.

Scope The scope of the assessment is the Chaah Palm Oil Mill and the supply base of Sime Darby owned Chaah and Sungai Simpang Kiri Estates. The Supply Chain mechanism used is Segregation. The SOU20 operations were assessed against the RSPO Supply Chain Standard : November 2011 requirements for Oil Mills and Module D – CPO Mills: Segregation.

Description of Operation’s Management System SOU20 uses the segregation mechanism for the supply chain. All consignments of FFB despatched from the Estate to the Mill are accompanied by a Consignment Note with a unique consecutive number and includes details of: Field Number Harvested; block Number; No of Bunches; Date Harvested; Estimated Tonnage; Vehicle Registration Number; Driver’s Name and Bin Number. All deliveries of FFB received at the Mill are issued with a Weighbridge Docket that records the Name of the Estate, Truck Registration No, Driver’s Name and the Tonnage. The weighbridge system is computerised and delivery records are used as the basis for payment for FFB deliveries. A sample of weighbridge dockets was checked at the Mill against the summaries of FFB deliveries from Chaah Estate. This confirmed the details of the source and quantity of FFB were recorded accurately and could be verified by tracking. The source of the FFB can be traced back to the Estate and the oil palm block from which it was harvested. The Mill sends a Daily Production Report to Sime Darby Head Office that records the quantity of FFB received from the Estate; the tonnage of FFB processed; the tonnages of CPO and PK produced; shipment tonnages; and the quantities of materials held in storage. The Mill and Estates also report the above quantities monthly to Sime Darby Head Office in the Monthly Production Report. Checks of records confirmed there were no sales of RSPO Certified CPO and PK produced by Chaah Mill during the preceding 12 months (01 April 2012 – 31 March 2013). Inspection of documents confirmed that SOU20 maintains the documentation required for supply chain verification (RSPO Supply Chain Standard : November 2011 requirements for Oil Mills and Module D – CPO Mills: Segregation).

Certified Volume Purchased and Claimed The following certified FFB material was received from SOU20 Estates and adjacent Certified Sime Darby Estates during the 01 April 2012 – 31 March 2013 year and processed at Chaah Mill: 106,569·49 t/FFB

Prepared by BSi Group Singapore Pte Ltd for Sime Darby Plantation Sdn Bhd (SOU20) Public Summary Report – RSPO Annual Surveillance Assessment (ASA3) SUPPLY CHAIN Main Report Details 1. Documented procedures 1.1 The facility shall have written procedures and/or work instructions to ensure the implementation of all the elements specified in these requirements. This shall include at minimum the following: a) Complete and up to date procedures covering the implementation of all the elements in these requirements. Complies – Procedures are current and include all elements of the Supply Chain for controlling the receipt, sale and dispatch of palm products. For example, SPMS: 2012 Draft/ Appendix 15 - Standard Operating Procedure for Traceability and RSPO Supply Chain Certification System. b) The name of the person having overall responsibility for and authority over the implementation of these requirements and compliance with all applicable requirements. This person shall be able to demonstrate awareness of the facilities procedures for the implementation of this standard. Complies – The Mill Manager has responsibility for the Supply Chain aspects of FFB receipts, processing and shipping of palm products. Interview confirmed his knowledge of the RSPO Supply Chain requirements for the respective areas of the mill operations. 1.2 The facility shall have documented procedures for receiving and processing certified and non-certified FFBs. Complies – the Mills Weighbridge SOP covers the receiving of FFB and recording details of the Supplier and Transporter. All deliveries of FFB are subject to verification of documentation and quality checks. For example, MQMS/V1:2008/Level 3/Standard Operating Procedure/Station No. 1/Reception Station/1.3.1:Weighbridge MQMS/V1:2008/Level 3/Standard Operating Procedure/Section V:Introduction/Crop Quality Standards. 2. Purchasing and goods in 2.1 The facility shall verify and document the volumes of certified and non-certified FFBs received. Complies – the Mill records tonnages received at the weighbridge and these are reported daily to Head Office on the Production Report. 2.2 The facility shall inform the CB immediately if there is a projected overproduction. Complies – the company has a mechanism for advising the CB of production variations, which are monitored internally. 3 Record keeping 3.1 The facility shall maintain accurate, complete, up-to-date and accessible records and reports covering all aspects of these requirements. Complies – Inspection of records at the Mill confirmed these were updated daily. 3.2 Retention times for all records and reports shall be at least five (5) years. Complies – Records are archived and stored for > 5 years. 3.3 The facility shall record and balance all receipts of RSPO certified FFB and deliveries of RSPO certified CPO, PKO and palm kernel meal on a three-monthly basis. Complies – these are updated monthly and reported to Head Office on the Monthly Production Report. 3.4 The following trade names should be used and specified in relevant documents, e.g. purchase and sales contracts, e.g. *product name*/SG or Segregated. The supply chain model used should be clearly indicated. Complies – The company uses the prefix SG on the Product Code. 4. Sales and good out 4.1 The facility shall ensure that all sales invoices issued for RSPO certified products delivered include the following information: a) The name and address of the buyer; b) The date on which the invoice was issued; c) A description of the product, including the applicable supply chain model (Segregated or Mass Balance) d) The quantity of the products delivered; e) Reference to related transport documentation. Complies – although SOU20 had NIL sales of certified palm products, all of these items (a-e) are included in the company’s standard sales invoicing.

5 Processing 5.1 The facility shall assure and verify through clear procedures and record keeping that the RSPO certified palm oil is kept segregated from non-certified material including during transport and storage and be able to demonstrate that is has taken all reasonable measures to ensure that contamination is avoided. The objective is for 100 % segregated material to be reached. The systems should guarantee the minimum standard of 95 % segregated physical material, up to 5 % contamination, is allowed. Complies – Chaah Oil Mill received only crop from RSPO Certified Sime Darby Estates in 2012/13 (100% Certified material). 5.2 The facility shall provide documented proof that the RSPO certified palm oil can be traced back to only certified segregated material. Complies – the Weighbridge records the Estate Name, Division, Field Number, Harvest Road and Harvest Date from the Estate Delivery Docket, together with the Vehicle Registration Number, Driver Name & Driver License Number. Checks of a sample of records confirmed only certified segregated crop has been processed by the Mill since January 2012. 5.3 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 operator conforms to these requirements for segregation Complies – Chaah Mill does not out-source crushing to an independent palm kernel crush.  The crush is covered through a signed and enforceable agreement NA 6 Training 6.1 The facility shall provide the training for all staff as required to implement the requirements of the Supply Chain Certification Systems. Complies – The company maintains records of training. Interviews of Mill Staff confirmed general knowledge of the Supply Chain requirements. 7 Claims 7.1 The facility shall only make claims regarding the use of, or support of RSPO certified oil palm products that are in compliance with the RSPO Rules for Communications and Claims. Complies – To the best of the Assessor’s knowledge, the company has not made claims outside of the RSPO rules for Communications and Claims.

Prepared by BSi Group Singapore Pte Ltd for Sime Darby Plantation Sdn Bhd (SOU20)

Appendix “B”

Sime Darby Time Bound Plan

Public Summary Report – RSPO Annual Surveillance Assessment (ASA3) TIME BOUND PLAN

Prepared by BSi Group Singapore Pte Ltd for Sime Darby Plantation Sdn Bhd (SOU20) Public Summary Report – RSPO Annual Surveillance Assessment (ASA3) TIME BOUND PLAN

Prepared by BSi Group Singapore Pte Ltd for Sime Darby Plantation Sdn Bhd (SOU20) Public Summary Report – RSPO Annual Surveillance Assessment (ASA3) TIME BOUND PLAN

Prepared by BSi Group Singapore Pte Ltd for Sime Darby Plantation Sdn Bhd (SOU20) Public Summary Report – RSPO Annual Surveillance Assessment (ASA3) TIME BOUND PLAN

Prepared by BSi Group Singapore Pte Ltd for Sime Darby Plantation Sdn Bhd (SOU20) Public Summary Report – RSPO Annual Surveillance Assessment (ASA3) TIME BOUND PLAN

Prepared by BSi Group Singapore Pte Ltd for Sime Darby Plantation Sdn Bhd (SOU20) Public Summary Report – RSPO Annual Surveillance Assessment (ASA3) TIME BOUND PLAN

Prepared by BSi Group Singapore Pte Ltd for Sime Darby Plantation Sdn Bhd (SOU20) Public Summary Report – RSPO Annual Surveillance Assessment (ASA3) TIME BOUND PLAN

Prepared by BSi Group Singapore Pte Ltd for Sime Darby Plantation Sdn Bhd (SOU20)

Appendix “C”

ASA3 Programme

Public Summary Report – RSPO Annual Surveillance Assessment (ASA3) ASSESSMENT PROGRAMME

ASA3 PROGRAMME – 02–03 MAY 2013

TEAM: CR: Charlie Ross; RR: Robyn Ross; IN: Iman Nawireja; JM: Junecel Maloloy

DATE TIME ACTIVITY CR IN RR JM

AM Opening Meeting √ √ √ √ Thursday Document Review including Supply Chain √ 2 May Interview Male Mill Workers √ √ Interviews (Contractors/Suppliers) √ √ Review Pay Documentation √ √ TEAM 1 Interview Female Staff/Workers √ √ CHAAH PALM PM Inspect Mill, Effluent Ponds, Land Application, Stores, Workshop, √ OIL MILL Compost Site and Landfill Closing Briefing √ √ √ AM Inspect Estate, including Buffer Zones √ Inspect Stores, Workshop, Landfill √ Interview Fieldworkers √ Interview Staff/Workers √ TEAM 2 Interviews (Contractors/Suppliers) √ SUNGAI PM Interviews with Local Community Representatives √ SIMPANG KIRI Visit Clinic Interview Staff √ √ ESTATE Inspect Housing Interview Residents √ √ Document Review √ Closing Briefing √ AM Opening Briefing √ √ √ Visit North Labis Estate to follow-up ASA2 findings √ Inspect Estate, including Buffer Zones √ Friday Inspect Stores, Workshop, Landfill √ 3 May Interview Male/Female Fieldworkers √ √ Interview Staff/Workers √ √ Review Pay Documentation √ √ Contact Government Departments, NUPW, AMESU, NGOs, etc √ CHAAH PM Interviews (Contractors/Suppliers) √ ESTATE Document Review √ Visit Clinic Interview Staff (Mill/Estate) √ √ Inspect Housing Interview Residents (Mill/Estate) √ √ Prepare Visit Report and Closing Presentation √ Closing Meeting √ √ √ √

Prepared by BSi Group Singapore Pte Ltd for Sime Darby Plantation Sdn Bhd (SOU20)

Appendix “D”

List of Stakeholders Contacted

Public Summary Report – RSPO Annual Surveillance Assessment (ASA3) STAKEHOLDERS CONTACTED

LIST OF STAKEHOLDERS CONTACTED

Staff and Workers Staff and Workers 4 Female Mill Staff/Workers 4 Female Staff/Workers Chaah Estate 7 Male Mill Staff/Workers 5 Female Chaah Estate Sprayers 15 Residents Chaah Mill/Estate Housing 5 Foreign Male Chaah Estate Sprayers Hospital Assistant Chaah Mill/Estate Clinic Medical Assistant North Labis Estate Clinic 2 Chaah Estate Crèche workers 11 Residents Sungai Simpang Kiri Estate Housing 9 Foreign Harvesters Sungai Simpang Kiri Estate

Contractors & Suppliers Local Communities Foreign Labour Supplier Kampung Hj Khamisan Head Mill Engineering Contractor Estate Equipment Supplier

Government Departments NGOs and Others Department of Labour AMESU, Subang Jaya Department of Occupational, Safety and Health NUPW, Kluang

Prepared by BSi Group Singapore Pte Ltd for Sime Darby Plantation Sdn Bhd (SOU20)

Appendix “E”

Evidence for Closing Nonconformity CR07

Due to insufficient corrective action being implemented the Nonconformity assigned to Minor Compliance Indicator 6.1.3 during ASA2 was raised to a Major Nonconformity

Appendix E (Document 1) Minutes of Meetings with Stakeholders

MINUTES OF MEETING CHAAH ESTATE

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Minutes of Meeting Sg Simpang Kiri Estate

Appendix E (Document 2) Attendance List of Meeting with stakeholders

Appendix E (Document 3) Revised Social Action Plans

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Plantation North Labis Estate FY 2012/2013

MANAGEMENT REVIEW ON SOCIAL IMPACT ASSESSMENT

Areas of Concerns/Key Action Plan Status PIC Completion Remarks Findings Date External Small Holder Small holder surrounding the Estate to give As per FY 12/13 estate has given En. Muhamad Done Refer to estate having problem temporary permit temporary permit to the small Adam approval letter accessing estate road to take to the small holder holder (Kim Giap Trading) on 20 from head out their rubber tree timber to access estate Mac 2013. quarters during land clearing road.

Internal Small Holder To conduct Meeting with the all cattle Estate Done Details can be 2) Cattle Encroachment at meeting with the owner has been conduct on 26 Management refer to the workers quarters all cattle owner April 2013 minutes of meeting The estate plan to 3) Estate workers at the main change the water Headquarters already approve Estate Refer to the division always having problem supply from own the budget to install new water management August 2013 Pemborong with water supply source to Syarikat supply for FY 2012/2013. Jaya letter Air Johor supply to Installation now in final stage. ensure consistent Expected to get SAJ water water supply supply by August 2013