MSPO CERTIFICATION
EXECUTIVE / PUBLIC SUMMARY REPORT
Delta-Pelita Sebakong Sdn Bhd BR No: 50452006
Lot 24, Block 0, Jalan Dijih, Mukah Land District, 96400 Mukah, Sarawak
Sites: Delta-Pelita Sebakong Sdn. Bhd. Desacorp Sdn. Bhd Suajaya Mahir Crop Sdn. Bhd.
6th – 9th Jan 2020
Re-Certification
DQS Certification (M) Sdn Bhd (689316-X) Suite 43-4 Setia Avenue, Jalan Setia Prima S U13/S, Setia Alam Seksyen U13, 40170 Shah Alam, Selangor, Malaysia. Tel: +603-3342 3259 (Hunting Line) - Fax: +603-3358 3299
Table of Contents
I. Public Summary Report ...... 3 1. Detail of Certification Assessment ...... 3 2. Details of Estates ...... 3 2.1. Map ...... 5 3. Assessment Process ...... 7 4. Audit Plan ...... 7 5. Summary of Audit Results ...... 19 6. Audit findings ...... 20
II. Audit Report (Estate) ...... 21 1. Introduction ...... 21 1.1 Scope of Certification ...... 21 2. Audit Evaluation Process ...... 21 2.2. Stage 1 ...... 21 2.3. Re-Certification ...... 21 2.4. Stakeholder’s Consultation ...... 62 5. Audit Information...... 63 5.1. Contact Information ...... 63 5.2. Audit Data ...... 63 5.3. List of the site audited each year please refer to Appendix 1: Group Certification Member, MPOB License, Main business/processes at location ...... 64 5.4. Audit Result ...... 64 5.5. Next Step ...... 66 6. Overview of Non-Conformity ...... 67 6.1. Action Plan 1 ...... 67 7. Overview of OFI and concern ...... 67 7.1. Opportunity for Improvement ...... 67 7.2. Concern Area for Next Year Audit ...... 67 8. Attachment and Appendix...... 68 8.1. Attached Documents (Mandatory For DQS Auditor To Use Only):): ...... 68 8.2. Appendix 1: Group Certification Member, MPOB License, Main business/processes at location ..... 68 8.3. Appendix 2: Audit Cycle Plan ...... 69
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I. Public Summary Report
1. Detail of Certification Assessment Date(s) of Audit: 6th – 9th Jan 2020 Type of Audit: Re-Certification Scope of MSPO certification: Production of Sustainable Fresh Fruit bunches from 26,905.60 ha total oil palm planted area 28,619.14 ha total certified area MSPO Standard: Malaysian Sustainable Palm Oil (MSPO) in accordance to the MS 2530- 3:2013 (Part 3): General principles for oil palm plantations and organized smallholders.
2. Details of Estates Management Contact Person: Mr.Yang Wen Yeow
Contact No: 017-8626286
Email Address: [email protected]
MPOB License No, Scope of [504283902000] Company: Delta-Pelita Sebakong Sdn Bhd activity, Expiry date: Site: Lot 24 & 35, Mukah Land District, 96400, Mukah, Sarawak Activity 1: Menjual dan mengalih FFB# Expiry date: 31/10/2020 BR No: 50452006
(For Estate has more than 1 site, please refer to Appendix 1) Year operation start: Delta-Pelita: 1999; Desacorp: 2006; Suajaya Mahir: 1999
Soil Type: Delta-Pelita: 99.01% Organic Soil and 0.09% mineral soil from Sangau family Desacorp: 70% Mineral Soil and 30% Peat. Suajaya Mahir: Mineral and Peat
First year production harvest: Delta-Pelita: 2007 Desacorp: 2003 Suajaya Mahir: 2002
Total Certified Area (Titled area. 28,619.14 ha Area within unit which may include planted area, mill, housing roads, conservation etc (Ha): Total planted area (TOTAL 26,905.60 ha PLANTED AREA WITH OIL PALM - MATURE OR IMMATURE) (Ha):
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Estate - Estimated tonnages of Delta-Pelita Actual Crops vs Estimated Crops annual FFB Production: Oct 2017-Sept 2018: 124,867.42 mt @ 17.95 mt/ha vs 140,000.00 mt @ 20.13 mt/ha Oct 2018-Sept 2019: 125,116.31 mt @ 17.99 mt/ha vs 142,000.00 mt @ 20.41 mt/ha
Desacorp Actual Crops vs Estimated Crops Oct 2017-Sept 2018: 78,094.27 mt @ 19.17 mt/ha vs 76,311.00 mt @ 18.73mt/ha Oct 2018-Sept 2019: 87,999.55 mt @ 21.54 mt/ha vs 84,639.00 mt @ 20.72mt/ha
Suajaya Mahir Actual Crops vs Estimated Crops Oct 2017-Sept 2018: 88104.05 mt Oct 2018-Sept 2019: 67805.00 mt
Current valid certificate: ☒ Yes (Individual MSPO Certificate for Delta-pelita Sebakong, Desacorp and Suajaya Mahir ) ☐ No Delta-Pelita Sebakong Sdn Bhd
Date of Certification: 31/7/2019 Valid until: 30/7/2024 Desacorp Sdn Bhd
Date of Certification: 7/5/2019 Valid until: 6/5/2024 Suajaya Mahir Crop Sdn Bhd
Date of Certification: 25/2/2018 Valid until: 24/2/2023 Other sustainability ☐ Yes (if “yes”, please specify) certifications: ☒ No Date of Certification: nil Valid until: nil
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2.1. Map Map of Delta-pelita Sebakong Sdn Bhd
.
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Map of Desacorp Sdn Bhd
Map of Suajaya Mahir Sdn. Bhd.
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3. Assessment Process Total manday: 7.0 Mandays Lead Auditor: Johari Bin Mohd Nor Qualification: Tertiary Working Experience: Minimum 10 years Co-Auditor: Noorainie binti Awang Anak Qualification: Tertiary Working Experience: Minimum 10 years Lead Auditor: Mohd Shauki bin Mohd Ghazali Qualification: Tertiary Working Experience: Minimum 5 years Proposed dates of next audit: 4th January 2021 Annual Surveillance Audit 1 Information on certified entities to Delta-Pelita Sebakong Sdn Bhd, Desacorp Sdn Bhd, and Suajaya be audited in five years cycle: Mahir Crop Sdn Bhd are companies of WTK Group.
Note: Auditors listed are meeting with competency criteria according to clause 3 (Table 1) of Competency Requirement for Certification Body of Operating Oil Palm Management Certification Under the Malaysian Sustainable Palm Oil (MSPO) Certification Scheme (ACB – OPMC 1, Issue 1, 01 August 2017) and clause 7 of ISO/IEC 17021 Requirements for The Accreditation of Certification Bodies. 4. Audit Plan
Audit plan Version (date) 31/10/2019 Ref. no. 50452006
Company name Delta-Pelita Sebakong Sdn Bhd (50452006) (POM – Plantation Group Manager)
Address HQ Bangunan Hung Ann, No 1, Jalan Bujang Suntong, 96000 Sibu, Sarawak.
Address Site(s) Delta-Pelita Sebakong Sdn Bhd (50451111) Lot 24 & 35 Mukah Land District, 96400 Mukah
Desacorp Sdn. Bhd. (50451112) Lot 2 & 3, Block 169, Jln Matadeng / Selangau, Mukah Land District, 96400 Mukah, Sarawak.
Suajaya Mahir Crop Sdn. Bhd. (50451117) Lot 8, Block 3 Arip & Lot 12 Balingian, 96350 Balingian, Sarawak.
Standard(s) MS2530-3:2013
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Type of audit Re-Certification (RA) Audit team Lead Auditor: Johari bin Mohd Nor (JO) Lead Auditor: Mohd Shauki bin Ghazali (SKI) Lead Auditor in Training: Noorainie binti Awang Anak (NAA) Audit scope Oil Palm Plantations Audit language English, Bahasa Melayu Audit date 06 to 09/01/2020 Audit criteria — Requirements of the above-mentioned standard(s) — Relevant statutory, regulatory and contractual requirements for the management system — Process documentation of the management system developed by the client — DQS Audit and certification regulations
Recertification audit
1. Evaluation of the performance of the management system over the period of certification 2. Review of previous surveillance audit reports 3. Review effectiveness of measures arising from the previous audit (if applicable) 4. Evaluation of effectiveness of the management system in its entirety in the light of internal and external changes 5. Evaluation of demonstrated commitment to maintain the effectiveness and improvement of the management system 6. Evaluation of achievement of the organization's policy and objective 7. Customer specific requirements 8. Others:
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Time Subject; Reference Unit; department Participants Auditor(s) process Date / Day 1 (06th Jan 2020) – Estate: Delta-Pelita Sebakong Sdn Bhd BR :50451111 13.00-13.30 Opening Meeting Delta-Pelita Sebakong Mill/Estate JO & NAA Mill/ Estate, Desacorp management Estate & Suajaya representative
Mahir Estate 13.30 – Briefing from Delta-Pelita Sebakong Mill/Estate JO & 13.45 organization’s Mill/ Estate, Desacorp management NAA representative Estate & Suajaya representative Mahir Estate 13.45 - Audit process MS2530-3 Delta-Pelita Sebakong Estate JO 17.00 data Principle1 Estate & Suajaya management Mahir Estate representative MPOB Licenses
Geo-coordinate
Management Process
Top management
interview
Policies
Document reviews
Management Review
Internal audit
Continuous
improvement Used of Logo Review previous audit finding 13.45 – Transparency MS2530-3 Delta-Pelita Sebakong Estate NAA 17.00 Estate & Suajaya management Information and Principle2 Mahir Estate representative Documentation -Information from stakeholder -Internal communication -Stakeholder consultation, procedures Competent person End of The Day 1
13:00-17:00 (4hrs x 2 Auditors = 1.0 manday)
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Time Subject; process Reference Unit; Participants Auditor(s) department Date / Day 2 (07th Jan 2020) – Estate : Delta-Pelita Sebakong Sdn Bhd BR :50451111 08.00 - Social, Safety & MS2530-3 Delta-Pelita Estate JO 10.00 Health Principle 4 Sebakong Estate & management Suajaya Mahir representative SIA Estate OSH Plan
HIRARC Accident & emergency report
Complaint and grievances Safety meeting Contribution for sustainable Employment condition Training and Competency 08.30 – Compliance to Legal MS2530-3 Delta-Pelita Estate NAA 10.00 Requirements Principle 3 Sebakong Estate & management Suajaya Mahir representative Legal Register List, update Estate Compliance status Land Used Right Customary Right (if applicable) 10.00 - Site management MS2530-3 Estate Delta Pelita Estate JO & NAA 12.00 Field visit Sebakong only management representative 12.00- Lunch Break JO & 13.00 NAA
13.00 - Environment, Natural MS 2530-3 NAA 16.30 Resources, Principle 5 Delta-Pelita Estatel Biodiversity & Sebakong Estate & management Ecosystem Suajaya Mahir representative (Environmental Estate Management Plan) Environmental Objective Environmental Aspect & Impact Waste identification & management plan
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13.00 – Best Practices MS 2530-3 Delta-Pelita Estate JO 16.30 SOP, Economic and Principle 6 Sebakong Estate & management Suajaya Mahir representative Financial viability plan Estate Transparent & Fair pricing
- contracts
Contractor Management Subcontractor List MSPO Information Contract Agreement 16.30-17.00 Finding preparation MS 2530-3 Estate Suajaya LA:Hidhir JO & NAA and report audit Mahir Estate finding to LA Hidhir for Mahir Estate. End of The Day 2
8am-5pm (9hrs – 1hr Lunch Break)= 8.0hrs @ 1.0mdy x 2 auditors
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Time Subject; process Reference Unit; Participants Auditor(s) department Date / Day 3 (08th Jan 2020) – Mill: Delta-Pelita Sebakong Sdn Bhd BR :50451111
08.00 – Opening Meeting Delta-Pelita Mill JO&NAA 8.15 Sebakong Mill management representative 8.15-10.30 Audit process data MS2530-4 Delta-Pelita Mill JO MPOB Licenses Principle 1 Sebakong Mill management representative Geo-coordinate Management Process Top management interview Policies Document reviews Management Review Internal audit Continuous improvement Used of Logo Review previous audit finding
Social, Safety & Health MS2530-4 SIA Principle 4 OSH Plan HIRARC Accident & emergency report Complaint and grievances Safety meeting Contribution for sustainable Employment condition Training and Competency 08.15 – Transparency MS2530-4 Delta-Pelita Mill NAA 10.30 Information and Principle 2 Sebakong Mill management representative Documentation -Information from stakeholder
-Internal communication
-Stakeholder consultation,
procedures
Competent person
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Compliance to Legal MS2530-4 Requirements Principle 3 Legal Register List, update Compliance status Land Used Right Customary Right (if applicable) 10.30 - Site management MS2530-4 Delta-Pelita Mill JO & NAA 11.30 Field visit Sebakong Mill management representative 11.30 – Stakeholder Consultation for OFF-SITE Mill & Estate All JO & 12.30 all estate and Mill Stakeholder NAA
12.30- Lunch Break 13.30 13.30 - Environment, Natural MS 2530-4 NAA 16.30 Resources, Biodiversity & Principle 5 Delta-Pelita Mill Ecosystem Sebakong Mill management (Environmental representative
Management Plan) Environmental Objective Environmental Aspect & Impact Waste identification & management plan 13.30 - Best Practices MS 2530-4 Delta-Pelita Mill JO 16.30 SOP, Economic and Principle 6 Sebakong Mill management representative Financial viability plan Transparent & Fair pricing - contracts Contractor Management Subcontractor List MSPO Information Contract Agreement 16.30- Preparation for Closing MS2530-4 & JO & 17.00 Meeting MS2530-3 NAA
17.00- Closing Meeting for Mill & MS2530-4 & Delta-Pelita Mill & Estate JO & 18.00 Estate MS2530-3 Sebakong Mill & management NAA Estate representative End of The Day 3
8.00am-6.00pm (10hr -2 hr stakeholder consultation & Break)= 8hrs @ 1.0 mandays x 2auditor
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Time Subject; process Reference Unit; Participants Auditor(s) department Date / Day 4 (09th Jan 2020) – Estate : Desacorp Sdn Bhd BR :50451112 08.00 – 8.15 Opening meeting MS2530-3 Estate DesaCorp Estate JO & NAA management representative 08.15-08.30 Briefing from Estate DesaCorp Estate JO & organization’s management NAA representative representative 08.30-10.00 Audit process data MS2530-3 Estate DesaCorp Estate JO MPOB Licenses Principle 1 management representative Geo-coordinate Management Process Top management interview Policies Document reviews Management Review Internal audit Continuous improvement Used of Logo Review previous audit finding 08.30 – Transparency MS2530-3 Estate DesaCorp Estate NAA 10.00 Information and Principle 2 management representative Documentation -Information from stakeholder
-Internal
communication
-Stakeholder consultation, procedures Competent person
Compliance to Legal MS2530-3 Requirements Principle 3 Legal Register List, update Compliance status Land Used Right
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Customary Right (if applicable) 10.00 - Site management MS2530-3 Estate DesaCorp Estate JO & NAA 12.00 Field visit management representative 12.00- Lunch Break JO & 13.00 NAA
13:00-16:00 Social, Safety & MS2530-3 NAA Health Principle 4 Estate DesaCorp Estatel SIA management representative OSH Plan HIRARC Accident & emergency report Complaint and grievances Safety meeting Contribution for sustainable Employment condition Training and Competency 13.00 - Environment, Natural MS 2530-3 Estate DesaCorp Estate JO 16.00 Resources, Principle 5 management Biodiversity & representative
Ecosystem
(Environmental
Management Plan)
Environmental Objective Environmental Aspect & Impact Waste identification & management plan MS 2530-3
Principle 6 Best Practices
SOP, Economic and
Financial viability plan Transparent & Fair pricing - contracts Contractor Management Subcontractor List
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MSPO Information Contract Agreement 16:00-16:30 Preparation for Closing MS 2530-3 Estate DesaCorp Estate JO & NAA management representative 16:30-17:00 Closing Meeting JO & NAA
End of The Day 4
8am-5pm (9hrs – 1hr Lunch Break)
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Time Subject; process Reference Unit; Participants Auditor(s) department Date / Day 1 (07/01/2020) 08:00 Opening Meeting - - Top management / SKI,JO MR, Estate 08.45 Briefing from the organization’s - - All SKI,JO representative 09.00 Audit process data MS 2530-3 Suajaya Estate management SKI Mahir Estate representative Management commitment and Principle Responsibility 1,2,3
Policies Document reviews Management Review Internal audit JO Continuous improvement Transparency Traceability Legal Compliance Customary Right Land Title 09.30 Site Visit to field and Facilities MS2530-3 SKI, JO
12:30 Lunch Break
1:30 Environment, Natural Resources, MS 2530-3 SKI Biodiversity & Ecosystem Principle 5 Suajaya Estate management (Environmental Management . Mahir Estate representative Plan)
Environmental Objective
Environmental Aspect & Impact
Pollution assessment and action plan Energy Management JO Non-renewable energy estimation Waste identification & management plan Water management plan 5.00 End of Audit - Day 1
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Time Subject; process Reference Unit; Participants Auditor(s) department Date / Day 2 (08/01/2020) – Estate 8.00 Social, Safety & Health MS 2530 – 3 On-site Estate SKI SIA Principle 4 management OSH Plan representative HIRARC Accident & emergency report Complaint and grievances Safety meeting Contribution for sustainable Employment condition Training and Competency 9.00 Stakeholder Consultation Stakeholder (combined with Suajaya Mill) Representative 10.30 Best Practices MS 2530 - 3 Suajaya Mahir Estate SKI SOP, Economic and Financial Principle 6 Estate management viability plan representative 12.30 Lunch Break
1:30 Contractor Management MS 2530 - 3 Suajaya Mahir Estate SKI Subcontractor List Principle 6 Estate management representative MSPO Information Contract Agreement 4.30 Auditor preparation SKI
5.30 Soft Closing Meeting - All Estate All managem Suajaya Mahir ent Estate represent ative 6.00 End of Audit - -
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Date Agenda sent to Client:
☒ The audit schedule was maintained
☐ The audit schedule was altered as follows:
☒ The audit objectives have been met
☐ The following audit objectives could not be met:
5. Summary of Audit Results Audit summary and recommendation for certification. This report details the audit results including strengths, opportunities, and weaknesses. These results were presented to your management at the closing meeting of the audit. You can use these results to improve the effectiveness of your management system. We look forward to continuing our partnership towards sustainable business success
In reference to MS 2530-3:2013, the audit team recommends to DQS: ☒ Issuance of the certificate ☐ Issuance of the certificate as soon as implementation of corrective actions has been demonstrated ☐ Maintenance of the certificate ☐ Maintenance of the certificate as soon as implementation of corrective actions has been demonstrated ☐ Not applicable, due to extraordinary type of report
Please remember to notify DQS about any significant change to your management system at your earliest convenience. Together we will then coordinate appropriate measures to maintain your current certification.
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6. Audit findings Type of Findings Total number Responses from entities Major Nil Notified
Minor Nil Notified
OFI Nil Acknowledged Issues raised during Resolved stakeholder consultation
Official Sign-off of the assessment findings:
Lead Auditor Signature:
Name: Mohd Hidhir Bin Hamdan Date : 9/1/2020
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II. Audit Report (Estate)
1. Introduction The Assessments conducted under agreement with Delta-Pelita Sebakong Sdn Bhd at their production units to certify that audited sites comply with the requirements of Malaysian Sustainable Palm Oil (MSPO) in accordance to the MS 2530-3:2013 (Part 3): General principles for oil palm plantations and organized smallholders.
1.1 Scope of Certification This Audit Report details the evaluations of audit process and actual onsite audit activities of Auditors to collect evidences basing on the requirement of seven principles in according to Malaysian Sustainable Palm Oil (MSPO) in accordance to the MS 2530-3:2013 (Part 3): General principles for oil palm plantations and organized smallholders. Audit result determines compliance of audited sites in the overview of Non-Conformity and Opportunity for Improvement. The outcomes have been described from 939-D2-MSPO Guidance - Part 3 (estate) checklist of each sampled estates. Recommendation of Certificate releases in consideration of relevant issues raised by stakeholder groups to gauge level of compliance against the requirements of Malaysian Sustainable Palm Oil (MSPO). 2. Audit Evaluation Process 2.2. Stage 1 Stage 1 is not applicable. The site is currently certified with MSPO 2.3. Re-Certification This is a Re-Certification audit, being planned and executed according to MS2530-3 standard reference. Delta-Pelita Sebakong Sdn Bhd (Palm Oil Mil) is registered to function as group management for certification where, the management system has been regulated for central unit of plantation group This is Re-Certification audit after successful achievement of previous year surveillance audit conducted on 4th to 6th March 2019 and the organization has demonstrated their maintenance of commitment sustainability management system. This is Re-certification audit after changes of certification scope by the management from individual certification into group of certifications which is consist of five (5) estates and Delta Pelita Sebakong Sdn Bhd (POM) was appointed as a central office for this group certification. Refer to the achievement of previous stage 2 audit for each sample estates conducted in year 2018 and 2019, and organization has demonstrated their maintenance of commitment and responsibility on sustainable management system. Therefore, the summary report will describe audit criteria of the auditing process as documented in the audit schedule as well as the current management system documentation of the company.
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The audit criteria are the certification standards as documented in the audit schedule as well as the current management system documentation of the company. Assessment has been executed at the site area with below GPS no (refer to Appendix 2) Site(s) has been sampled and assessed as per inspection plan (refer to Appendix 1)
Notes: Sampling process is applied according to MSPO sampling guideline (939-F_-MSPO Man day Calculation) Delta-Pelita Sebakong Sdn. Bhd (Palm Oil Mill) is registered to function as group management where legal document, internal audit, final management review has been retrieved from this unit. It was however, the process of internal audit has been executed by Sustainability section based in headquarter at Sibu, Sarawak. The member of group certification is listed as per appendix 1 of this document. Company ownership has been demonstrated by official document released by the headquarter office. It would be sufficient enough to demonstrate the relationship between holding group company against operational unit. Recertification audit was conducted on 6th – 9th Jan 2020 with 7.0 total man-days was allocated according to MSPO Certification Procedure and due to the management decision to change certification scope from individual certification into Group Certification consist of 5 estates. In summary, we have evaluated your management system as follows: Re-Certification
Criterion / Indicator Evidence / Finding Result
4.1 Principle 1: Management commitment & responsibility
Criterion 4.1.1 – Malaysian Sustainable Palm Oil (MSPO) Policy
4.1.1.1 A policy for the Sighted the evidence of MSPO Policy was ☒ Confirm implementation of MSPO established and signed by the Director at shall be established. 1/8/2017 for all group sample estates. ☐Minor NC 1) Desacorp Sdn Bhd 2) Delta-Pelita Sebakong ☐Major NC 3) Suajaya Mahir Crop Sdn Bhd ☐OFI
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4.1.1.2 The policy shall also Management committed to continually ☒ Confirm emphasize commitment to improve its estate operation, system and continual practices that their mentioned it the policy. ☐Minor NC improvement. ☐Major NC
☐OFI
Criterion 4.1.2 – Internal audit
4.1.2.1 Internal audit shall be planned Internal audit was carried out by ☒ Confirm and conducted regularly to Sustainability Team from HQ and dated as determine the strong and weak below ☐Minor NC points and potential area for 1) Suajaya Mahir Crop – 16 to 17/10/2019 further improvement. 2) Desacorp Sdn Bhd – 27 to 28/11/2019 ☐Major NC 3) Delta-Pelita Sebakong -22 to 23/10/2019 ☐OFI
4.1.2.2 The internal audit procedures The internal audit procedure is available by ☒ Confirm and audit results shall be refer to Doc No DSC/MSPO/02-1g dated documented and evaluated, 10/4/2019 ☐Minor NC followed by the identification of strengths and root causes The corrective action already rectified by the ☐Major NC of nonconformities, in order to auditee to the LA. implement the necessary ☐OFI corrective action.
4.1.2.3 Report shall be made Report will be made available to the ☒ Confirm available to the management management for their review and with Non- for their review. Conformities need to be closed within in two ☐Minor NC weeks. ☐Major NC
☐OFI
Criterion 4.1.3: Management Review
4.1.3.1 The management shall The Management Review Meeting was carried ☒ Confirm periodically review the out by each of estate as per dated below: continuous suitability, 1) Suajaya Mahir Crop – 25/10/2019 ☐Minor NC adequacy and effectiveness 2) Desacorp Sdn Bhd – 02/12/2019 of the requirements for ☐Major NC effective implementation of 3) Delta-Pelita Sebakong – 23/11/2019 MSPO and decide on any ☐OFI changes, improvement and The improvements are been rectified into the modification. continual improvement plan.
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Criterion / Indicator Evidence / Finding Result
Criterion 4.1.4: Continual Improvement
4.1.4.1 The action plan for continual The continual improvement plans are available ☒ Confirm improvement shall be based that consist: on consideration of the main ☐Minor NC social and environmental 1) Social Improvement Plan impact and opportunities of 2) Environmental Improvement Plan ☐Major NC the company. 3) Pollution, water and Biodiversity management plan ☐OFI 4) Production and profit 5) New system for Technology
Refer to Continuous Improvement Procedure- DPS/MSPO-01-1 dated 18/3/2019. All the plans were monitored and implemented effectively.
4.1.4.2 The company shall establish Management has established a system to ☒ Confirm a system to improve improve practices in line with new information practices in line with new and techniques refer to doc No SJM/MSPO- ☐Minor NC information and techniques 01-1 Rev No: 01. or new industry standards Management has adopted Avenza Map ☐Major NC and technology, where Application for their new technology to improve applicable, that are available ☐OFI in measuring and surveying for estate and feasible for adoption. activities.
4.1.4.3 An action plan to provide the The improvement plan listed the action to be ☒ Confirm necessary resources done for year 2020 as referred to DPS/MSPO- including training, to 01-1a dated 27/12/2019 ☐Minor NC implement the new Example – Training for Avenza Map techniques or new industry 1) Suajaya Mahir Crop – 18/11/2019 ☐Major NC standard or technology 2) Desacorp Sdn Bhd – 17/4/2019 (where applicable) 3) Delta-Pelita Sebakong -17/4/2019 ☐OFI shall be established.
4.2 Principle 2: Transparency
Criterion 4.2.1 – Transparency of information and documents relevant to MSPO requirements
4.2.1.1 The management shall Management has conducted stakeholder ☒ Confirm communicate the information meeting for their stakeholders for each estate: requested by the relevant 1) Suajaya Mahir Crop – 23/08/2019 ☐Minor NC stakeholders in the 2) Desacorp Sdn Bhd – 13/9/2019 appropriate languages and 3) Delta-Pelita Sebakong -24/7/2019 ☐Major NC forms, except those limited by commercial confidentiality Management has briefing regarding MSPO ☐OFI or disclosure that could result Policy including communication and in negative environmental or consultation procedure. social outcomes.
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Procedure are available, refer to Doc No - Communication Procedure DPS/MSPO-06 dated 02/1/2019 and list of stakeholders.
Criterion / Indicator Evidence / Finding Result
4.2.1.2 Management documents The information on MSPO was available at the ☒ Confirm shall be publicly available, office notice board, workshop and housing except where this is quarters. ☐Minor NC prevented by commercial confidentiality or where Stakeholders also can visit to company ☐Major NC disclosure of information website at www.WTK.com.my. ☐OFI would result in negative environmental or social outcomes.
Criterion 4.2.2 – Transparent method of communication and consultation
4.2.2.1 Procedures shall be Communication Procedure is in place, the Doc. ☒ Confirm established for consultation No. DSC/MSPO-06-1, Rev No. 1, dated and communication with the 2/1/2019 with internal and external ☐Minor NC relevant stakeholders. communication procedure. Flowchart on information dissemination also sighted. ☐Major NC Sighted the list of stakeholders for each estate ☐OFI Where it was divided into: 1. Government 2. Long house and local community 3. Supplier 4. Bank 5. Services 6. Clinic 7. Insurance 8. Transport 9. Oil Mill 10. Estate 11. Hospital/Clinic 12. Machinery and Part 13. Bank 14. FFB Buyer 15. Schools 16. Neighbouring Estates
4.2.2.2 A management official should Sighted the appointment letter of the ☒ Confirm be nominated to be Communication Officer for all sample estates responsible for issues related was available during audit. ☐Minor NC to Indicator 1 at each Refer to the appointment letter for operating unit. communication Officer: ☐Major NC 1) Mr. Devenderan a/l Subramaniam -Delta Pelita Sebakong dated 1/12/2018 ☐OFI
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2) Mr. Kong Wei Chiong -Desacorp Sdn. Bhd dated 8/8/2017 and 3) Mr. Willy Anak Andam -Suajaya Mahir Crop dated 1/12/2019. All appointment letter was sighted signed by the Director.
4.2.2.3 List of stakeholders, records Stakeholder meeting was conducted with the ☒ Confirm of all consultation and government agencies and surrounding communication and records neighborhood estates: ☐Minor NC of action taken in response to 1)Suajaya Mahir Crop – 23/08/2019, Suajaya input from stakeholders Mahir Crop Meeting room. ☐Major NC should be properly 2)Desacorp Sdn Bhd –13/9/2019, Desacorp maintained Meeting Room. ☐OFI
3)Delta-Pelita Sebakong-24/7/2019 Rinwood Pelita (Mukah) Plantation Sdn Bhd Minute of meeting are available with the response from management to stakeholders’ input.
Criterion 4.2.3 – Traceability
4.2.3.1 The management shall Sighted the Traceability Procedure with Doc. No: ☒ Confirm establish, implement and DPS/MSPO-07-1. maintain a standard Refer to the respective procedure, seven (7) ☐Minor NC operating procedure to evidents activities under the Traceability Procedure comply with the are: ☐Major NC requirements for 1.Daily Production Report traceability of the 2.Traceability Inspection Form ☐OFI relevant product(s). 3. Letter of offer 4. Weighbridge Ticket 5. Sales Invoice 6. Delivery Notes 7. FFB Monthly statement
4.2.3.2 The management shall Management has conducted regular inspection once ☒ Confirm conduct regular a month by the traceability officer followed the inspections on traceability procedure Doc No-DPS/MSPO-07-1a. ☐Minor NC compliance with the During the site visit, no of bunches for individual established traceability harvester are sighted in FFB chit form. ☐Major NC system. ☐OFI
4.2.3.3 The management should Sighted the appointment letter for each estate in- ☒ Confirm identify and assign charge of traceability suitable employees to 1) Mdm. Dorrit Liging as the Traceability ☐Minor NC implement and maintain Officer for Delta-Pelita Sebakong, signed by the traceability system. the Senior General Manager (Mr. Anthony ☐Major NC Lee Ngie Yiung), dated 1/4/2018. ☐OFI 2) Mdm Ngui Sieng Fu as Traceability Officer for Desacorp Sdn. Bhd, signed by the, Director dated 8/8/2017.
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3) Traceability Officer, Mdm Kup Anak Malang dated 1st December 2019 for Suajaya Mahir Crop.
4.2.3.4 Records of sales, Weighbridge ticket FFB send to Mill are available. ☒ Confirm delivery or transportation Suajaya Mahir Crop Estate. of FFB shall be 1. Ticket No- 01613 ☐Minor NC maintained. 2. Vechicle No – AT08 3. GRN No – 13652 ☐Major NC 4. Weight- 5910 kg ☐OFI Weighbridge ticket FFB send to Mill from Delta-Pelita Sebakong Sdn Bhd also available:- 1. Ticket No- 01883 2. Vechicle No – SA3308 3. GRN No – 14213 4. Weight- 5643 kg
Meanwhile, refer to record on 23.12.19, FFB record for workers name, Mohd Zakir Gunawan and Johan, Block B07 to Mill (Delta-Pelita Palm Oil Mill) and inspected by the traceability officer.
Desacorp Sdn Bhd(sample) 1)Ticket No-00111 2) Vehicle No- AD761 3) Weight-28,860kg 4) GRN No -12870
All the FFB record are well maintained and monitored by system.
4.3 Principle 3: Compliance to legal requirements
Criterion 4.3.1 – Regulatory requirements
4.3.1.1 All operations are in List of License of estates: ☒ Confirm compliance with the applicable local, state, 1) Suajaya Mahir Crop Sdn Bhd ☐Minor NC 2) Desacorp Sdn Bhd national and ratified 3) Delta-Pelita Sebakong international laws and ☐Major NC regulations. As per Example: ☐OFI
1) MPOB License – 503838602000 valid until 31/01/2020 2) Permit Barang Kawalan Berjadual- Diesel valid until 20/11/2020 3) Trading License – valid until 21.11.2020 4) Form 49- Suajaya Mahir Crop Sdn Bhd Directors;
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5) Borang 9 – Perakuan Pemerbadanan Syarikat Sendirian. 6) EMR Report for Suajaya Mahir, Delta-Pelita Sebakong and Desacorp Sdn Bhd. 7) Air compressor license valid until 09/01/2021(Suajaya Mahir), 03/05/2020(Delta-Pelita Sebakong) All operations are compliance to the Regulatory requirement.
4.3.1.2 The management shall Sighted the legal requirement register (DPS/MSPO- ☒ Confirm list all laws applicable to 04) dated 2/1/2019 with legal register list their operations in a legal (DPS/MSPO-04-1a) ☐Minor NC requirement register. Under the list, they categorized the list according to: - Employee related ☐Major NC - Crop protection related - Environmental related ☐OFI - Standard quality and technical related - Land and Wildlife Protection related - Safety and Health related - Others (MPOB Licensing 2005), Food Act 1983 etc) Minimum Wages Order 2018 included
4.3.1.3 The legal requirements Legal Register was in order and updated. ☒ Confirm register shall be updated as and when there are ☐Minor NC any new amendments or any new regulations ☐Major NC coming into force. ☐OFI
4.3.1.4 The management should The assign persons for legal register (Compliance ☒ Confirm assign a person Officer): responsible to monitor 1) Mr. Devenderan A/L Subramaniam, on a ☐Minor NC compliance and to track appointment later dated 1/12/2018 and and update the changes signed by the Director, Dato’ Sri Patrick ☐Major NC in regulatory Wong. (Delta-Pelita Sebakong) ☐OFI requirements. 2) The assigned person for legal register i.e Compliance Officer Kong Wei Chiong is listed on an appointment letter dated 1/12/2018 and signed by the Director (Desacorp Sdn Bhd)
3) Mr Wong Sei Toh, Deputy Estate Manager was appointed as a Compliance Officer dated 1 August 2019. (Suajaya Mahir Crop) Criterion 4.3.2 – Land Use Rights
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4.3.2.1 The management shall 1) Sighted the provisional lease of state land, ☒ Confirm ensure that their oil palm which was signed by the Superintendent of cultivation activities do Lands and Surveys to Delta Pelita Sdn. Bhd ☐Minor NC not diminish the land use dated 16/5/2001 for Lot 24 and Lot 35 dated rights of other users. 28/4/2003. Also sighted the “Perakuan ☐Major NC Perbadanan Atas Pertukaran Nama Syarikat” from Pelita Sensasi Sdn Bhd to ☐OFI Delta Pelita Sebakong Sdn. Bhd. (from SSM)- (Delta Pelita-Sebakong)
2) Sighted the provisional lease of state land, which was signed by the Superintendent of Lands and Surveys, Mukah to Desacorp Sdn. Bhd dated 21/8/2007 for No. 2, Mukah Land District - (Desacorp Sdn Bhd)
3) Management developed oil palm cultivation under the LEASE OF STATE LAND (Sarawak) I) Under Balingian Land-Lot 12 5423 Ha II) ARIP LAND-Lot 22 1280 Ha III) Total Ha-6703 Ha- (Suajaya Mahir Crop)
4.3.2.2 The management shall ☒ Confirm provide documents ☐Minor NC showing legal ownership refer to above or lease, history of land tenure and the actual ☐Major NC use of the land. ☐OFI
4.3.2.3 Legal perimeter ☒ Confirm boundary markers should be clearly ☐Minor NC demarcated and visibly Boundary perimeter markers available. maintained on the ☐Major NC ground where ☐OFI practicable.
4.3.2.4 Where there are, or have ☒ Confirm been, disputes, documented proof of ☐Minor NC legal acquisition of land title and fair There was no significant evidence of dispute found ☐Major NC compensation that have at all three sample of estates. been or are being made ☐OFI to previous owners and occupants; shall be made available and that these should have been accepted with
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free prior informed consent (FPIC).
Criterion 4.3.3 – Customary rights
4.3.3.1 Where lands are There was no significant evidence of land were ☒ Confirm encumbered by encumbered by customary right. Demonstration on customary rights, the any rights are not applicable. ☐Minor NC company shall demonstrate that these ☐Major NC rights are understood ☐OFI and are not being threatened or reduced.
4.3.3.2 Maps of an appropriate ☒ Confirm scale showing extent of recognized ☐Minor NC Refer to 4.3.3.1, Not Applicable customary rights shall ☐Major NC be made available. ☐OFI
4.3.3.3 Negotiation and FPIC ☒ Confirm shall be recorded and copies of negotiated ☐Minor NC Refer to 4.3.3.1, Not Applicable agreements should be ☐Major NC made available. ☐OFI
4.4 Principle 4: Social responsibility, health, safety and employment condition
Criterion 4.4.1: Complaints and grievances
4.4.1.1 Social impacts should be Social Impact Assessment procedure for Delta- ☒ Confirm identified and plans are Pelita Sebakong Sdn.Bhd. was noted established implemented to mitigate by the management referring to doc no : ☐Minor NC the negative impacts and DPS/MSPO-09-1, rev no:00 with effective date on promote the positive 02/01/2019. ☐Major NC ones. ☐OFI
Sighted social improvement plan for Delta-Pelita Sebakong Sdn Bhd was conducted and documented. The evidence of positive and negative impact identification is available completed with action done and reviewed, action date and person to be responsible, also time frame.
Refer to SIA Doc no : DPS/MSPO-09-1b Rev 02, Date : 5/12/2019
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Sample Aspect have been discuss and documented:
Better living standard and condition
Positive impact: Benefits and conditions of living environment.
Negative impact: Lack of systematic monitoring and maintenance program for living environment.
Social Impact Assessment were sighted with the document number of DSC/MSPO-09-1 dated 15/8/2017 and the records on:
- Contribution to Social Responsibilities (DSC/MSPO-09-1a) - Social Improvement Plan (DSC/MSPO-09-1b)
Under their social improvement plan, Aspect and impact have been identified, and responsible also identified and also the timeframe to solve any issues; such as on the: - Living standards and conditions - Wages - Employment conditions - Health and safety at workplace - Training - Communication
Criterion / Indicator Evidence / Finding Result
Criterion 4.4.2: Complaints and grievances
4.4.2.1 A system for dealing with Sighted Complaint and Grievance Procedure was ☒ Confirm complaints and established and documented. Refer to Doc No: grievances shall be DPS/MSPO-08-1. Rev No: 00 with effective date: ☐Minor NC established and 02/01/2019 documented. ☐Major NC A suggestion form (DSC/MSPO-8-1a) and ☐OFI Monitoring Record (DSC/MSPO-8-1b) also available and the complaint and grievances were kept in a logbook that managed by the office. 4.4.2.2 The system shall be able Refer to the procedure, it was stated at Employees (i) ☒ Confirm to resolve disputes in an The complaint is advised to resolve the complaint or effective, timely and grievance informally and verbally as close to the ☐Minor NC appropriate manner that source as possible by discussing the issue with the is accepted by all parties. person involve. ☐Major NC Also sighted in the procedure stated at Non - employees ...the complaint can be made by ☐OFI completing the “suggestion form” and place it into “suggestion Box” which is placed in front of the estate office, within 5 days after the accurance of accident.
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Records: a)Suggestions form (DPS/MSPO-08-1a) b)Suggestion Forms Monitoring Records (DPS/MSPO-08-1b) c)Complaint Logbook.
The system was managed to overcome the dispute/complaints/grievances.
Sighted the example: A complaint by one of the worker 01862 reported on the 20/12/2019 that the genset was not working and the solution is by sending a mechanic to repair it and the problem rectified by 3/1/2020. The delay was because they are waiting for the spare parts.
4.4.2.3 A complaint form should Sighted complaint form available in fornt of estate ☒ Confirm be made available at the office together with suggestions Box. premises, where ☐Minor NC employees and affected It was noted that the management put their initiative stakeholders can make a to suggestion box monitoring checklist for every ☐Major NC complaint. month. Refer to Jadual Pemeriksaan Peti Cadangan tahun 2019 and 2020. Doc No: DPS/MSPO-08-1b ☐OFI Rev-00 effective date : 02/01/2019
Sighted the complaint forms available at the main entrance and canteen.
4.4.2.4 Employees and the The evidence of communicating the complaint or ☒ Confirm surrounding grievance or suggestions availability to the estate by communities should be surrounding communities was available referring to ☐Minor NC made aware that Minutes of Yearly MSPO Meeting for Year 2019, point complaints or No 4, prosedure Aduan dan Rungutan. ☐Major NC suggestions can be Most of the employees and the communities aware of ☐OFI made any time. the complaints or suggestion as referred to 4.4.1.1 and 4.4.2.2
4.4.2.5 Complaints and Sighted from Complaint log book established by the ☒ Confirm resolutions for the last 24 management, the latest complaint was recorded at months shall be 29/12/2019 and the first complaint recorded was at ☐Minor NC 19/11/2018 completed with Pengadu details, issue documented and made statement, action taken, status of closure, PIC, and ☐Major NC available to affected verification by the management. stakeholders upon Last verification noted as at 30/12/2019 ☐OFI request. A logbook to compile the complaints and grievances were sighted and all the previous complaints were recorded. The complaints and grievances seem to be resolved in a timely manner as referred to the logbook.
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Criterion 4.4.3: Commitment to contribute to local sustainable development
4.4.3.1 Growers should Verified that the management was established CSR ☒ Confirm contribute to local Summary as its like activities register completed with development in date of activities, location and remarks. ☐Minor NC consultation with the local communities. Sighted sample evidences. ☐Major NC
Adequate evidence completed with application letter, ☐OFI cash voucer, and photos.
It was noted that CSR activities cost has been allocated in yearly budget proved that the management commitment in contributing to surrounding community.
Sighted the contribution to local sustainable development (DSC/MSPO-09) whereby the list of CSR listed under DSC/MSPO-09-1a) with record from 2015-2019.
Criterion 4.4.4: Employees safety and health
Sighted Safety and Health Policy and plan was ☒ Confirm documented, effectively communicated and implemented. ☐Minor NC Adequate evidences sighted as below: 1.Safety, Health and Environmental Policy from ☐Major NC Delta-Pelita Sebakong Sdn Bhd. Signed by Director, ☐OFI Dato’ Sri Patrick Wong Haw Yeong, 10/06/2017. 2.Safety and Health Plan. Refer to Doc. No. DPS/MSPO-10-1 Rev. No. 00 with effective date An occupational safety 2/1/2019. and health policy and 3.Official Circulation Letter about MSPO plan shall be implementation from General Manager to 4.4.4.1 documented, effectively Director/Manager/Officer and all Contractor/ communicated and Suppliers/ Stakeholders which was emphasized implemented. about the implementation of MSPO Policy, Health, safety and environmental Policy. Policy communicated through morning muster briefing. (attendance list and training material are available). It was observed during site visit that all executives, staffs, and workers are aware about safety and health by wearing appropriate PPE and safety works effectively implemented.
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4.4.4.2 The occupational safety For sample estates: ☒ Confirm and health plan shall 1) Delta-Pelita Sebakong cover the following: 2) Desacorp Sdn Bhd ☐Minor NC a) A safety and health 3) Suajaya Mahir Crop policy, which is ☐Major NC communicated and a) Sighted Occupational Safety and Health are implemented. combined with environmental Policy dated 20 April ☐OFI b) The risks of all 2017 signed by Director.
operations shall be Policy communicated through morning muster assessed and briefing. (attendance list and training material are documented. available) c) An awareness and training programme b) Sighted Risk Assessment was conducted and which includes the following documented by HIRARC Team at 2/1/2019. Refer requirements for Doc No DPS/MSPO-10-6a employees exposed to pesticides: c) Training Programme 2019 available including i) all employees chemical exposure for Storekeeper, manure and involved shall be sprayer and all SDS are attached with the product in adequately trained the chemical store, fertilizer store and workshop. on safe working practices; and d) PPE was provided to the employee ii) all precautions attached to Sighted record of PPE issuance and during site visit, products shall be it was observed workers are wearing appropriate properly observed PPE with cover for Sickle and chisel and and applied. e) Sighted SOP for chemical handling were d) The management available. Refer to Doc. No. SHWP Manual Rev. 00 shall provide the effective date 15/8/2017. appropriate personal
protective f) Sighted Appointment letter as Person Incharge equipment (PPE) at the place of work to and responsible for workers safety and health are cover all potentially available. hazardous operations as -Delta-Pelita Sebakong -Mr. Jimmy Anak Empra was identified in the risk appointed as Safety and health Officer dated assessment and 1/12/18 control such as -Desacorp Sdn Bhd-Mr Shaw Siong Man-Divisional Hazard Manager was appointed as safety and health officer Identification, Risk dated 8/8/2017. Assessment and -Suajaya Mahir Crop- Management was appointed Risk Control Mr. Wesly Ak Januang as Safety and Health Officer (HIRARC). dated 2 January 2020. e) The management shall establish Standard Operating g) The evidence of two-way communication has Procedure for been conducted are available. handling of Example: chemicals to ensure -Quarterly OSHA Meeting bil 1/2019,2/2019,3/2019 proper and safe and 4/2019. handling and Sighted OSHA Meeting was carried out. storage in 1) 06/12/2019-OSHA Meeting 5
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accordance to 2) 14/09/2019-OSHA Meeting 4 Occupational Safety 3) 20/07/2019-OSHA Meeting 3 Health (Classification h) Accident and emergency procedures were sighted Packaging and (DSC/MSPO-10-3) dated 18/4/2018, where under Labeling) Regulation the procedure a flowchart on: 1997 and - handling accident, dangerous occurrence, Occupational Safety occupational poisoning and disease. Health (Use and - Emergency building evacuation Standard of - Fire/Explosion incident Exposure of - Unconsciousness etc Chemical Hazardous to i) First Aid Kits were available displayed at all Health) Regulation specific site (Housing quarter, workshop, creche, 2000. chemical store, fertilizers store, main office, and f) The management canteen and at field.) shall appoint responsible -Suajaya Mahir Crop-13 Trained First Aider person(s) for available -validity period 29/8/2017-28/8/2020 workers' safety and -Delta-Pelita Sebakong- 4 Trained first aider health. The Validity period-until 26/05/2020 appointed person(s) Desacorp Sdn Bhd-6 trained first aider of trust must have Validity period until 29/8/2020 knowledge and -All trained by Bulan Sabit Merah Malaysia access to latest Validity period 29/8/2017-28/8/2020- national regulations and collective j) Refer to Doc No. DPS/MSPO-10-3d, rev no. 00, agreements. date 02/01/2019. All accidents record is available. g) The management JKKP8 are submitted as per OSHA Act requirement. shall conduct regular two-way communication with their employees where issues affecting their business such as employee's health, safety and welfare are discussed openly. Records from such meetings are kept and the concerns of the employees and any remedial actions taken are recorded. h) Accident and emergency procedures shall exist and instructions shall be clearly understood by all employees. i) Employees trained in First Aid should be present at all field
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operations. A First Aid Kit equipped with approved contents should be available at each worksite. j) Records shall be kept of all accidents and be reviewed periodically at quarterly intervals. Criterion 4.4.5: Employment conditions
4.4.5.1 The management shall ☒ Confirm establish policy on good Social Practice Policy signed by Director dated 20 social practices regarding ☐Minor NC human rights in respect of April 2017. industrial harmony. The Policy effectively communicated during morning ☐Major NC policy shall be signed by muster to all employees. the top management and During interview with harvesters, sprayer an driver ☐OFI effectively communicated there are no issues. to the employees.
Criterion / Indicator Evidence / Finding Result
4.4.5.2 The policy on Social Practice that signed by the ☒ Confirm The management shall Director on the 1/8/2017, regarding not to engage in not engage in or support or support discriminatory practices and shall provide ☐Minor NC discriminatory practices equal opportunity and treatment regardless of race, and shall provide equal colour, sex, religion, political opinion, nationality, ☐Major NC opportunity and social origin or any other distinguishing treatment regardless of ☐OFI characteristics. race, colour, sex, No issues from workers from any discriminatory religion, political opinion, nationality, social origin practice in estate. or any other Sighted no discrimination races due to many races distinguishing from Indonesia are working in the estate (Jawa characteristics. Timur, Lombok) and local communities. Surau are provided for Muslim workers. 4.4.5.3 Management shall Permanent Staff: ☒ Confirm ensure that employees’ Stated the terms and conditions in appointment pay and conditions meet letter: ☐Minor NC legal or industry -Basic payment, Retirement age, Medical care and minimum standards and sick leave entitlement, EPF/SOCSO, working hours, ☐Major NC as per agreed Collective Public Holiday and annual leave. ☐OFI Agreements. The living Foreign Workers: wage should be 1.Employee No: 01435 sufficient to meet basic 2.Employee No: 01423 needs and provide some 3.Employee No: 01398 discretionary income All employee wages complied with minimum wages based on minimum act. wage.
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Amended agreement due to government announcement on minimum wages rate are available. Sample evidents: Employee No: 01423 old agreement signed at 8/8/2018. New agreement signed at 1/1/2019 for updated as per new minimum wages As referred to the “Perjanjian Pekerjaan Pekerja Bukan Pemastautin”, a contract for 01586 as sprayer were sighted, the minimum salary is complied with working hours from 7am - 4pm with lunch hour on 12pm-1pm and was signed by her on the 6/11/19 4.4.5.4 No contractor engaged for Delta Pelita and Suajaya ☒ Confirm Mahir Crop. ☐Minor NC Meanwhile, there was contractor hired by Desacorp Sdn Bhd for FFB transportation and agreement ☐Major NC dated 1/9/2019 Management should ☐OFI ensure employees of Refer to item no 1.4 in the contractor agreement, it contractors are paid was stated that “The contractor shall be deemed to be an independent contractor and as such it shall be based on legal or solely responsible for the strict observance and industry minimum compliance with all the provisions contained in or standards according to relating to Labour Ordinance, Workmen the employment contract Compensation Act, Emplyee’s Provident Funds, agreed between the Employee’s Social Security Act, and other contractor and his legislation, regulations by laws for the time employee. being.”
It was observed that the management have ensure employees of contractors are paid based on legal or industry minimum standards.
Sample of payment voucher from contractor to worker sighted available and evidence is adequate. 4.4.5.5 Refer to List of legalize workers; the management ☒ Confirm The management shall manage to record all data needed safely. establish records that Sighted on the “Perjanjian Pekerjaan Pekerja Bukan ☐Minor NC provide an accurate Pemastautin”, the: account of all employees -Fullname: 01586 ☐Major NC (including seasonal Gender: Female workers and Date of birth: 24/10/1989 ☐OFI Date of entry: AU199067 (passport) subcontracted workers Job description: Sprayer on the premises). The Wages: Workers' salaries rate were sampled and records should contain verified during the audit and found meeting the full names, gender, date minimum wages by law. of birth, date of entry, a job description, wage Period of employment: 3/12/2020 and the period of Same for Delta Pelita and Suajaya Mahir Crop employment. estates.
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4.4.5.6 All employees shall be Refer to 4.4.5.3. Fair Contract are available was ☒ Confirm provided with fair verified. contracts that have been Sighted on the “Perjanjian Pekerjaan Pekerja Bukan ☐Minor NC signed by both Pemastautin”, a contract for 01586 as sprayer was employee and employer. sighted. ☐Major NC A copy of employment ☐OFI contract is available for each and every employee indicated in the employment records.
4.4.5.7 Sample of check roll book was verified: ☒ Confirm Details in check roll are: 1.Total Day of Work ☐Minor NC 2.Job Distribution 3.Motorcycle allowance ☐Major NC 4.Overtime offered if it necessary ☐OFI A logbook for attendance has been provided with: - Name - Time in The management shall - Singnature establish a time - Time out recording system that - Signature makes working hours and overtime The Time table was available: transparent for both employees and - Monday to Friday employer. Morning muster: 5.30am-6.30am Morning 7.30am – 12pm Evening: 2pm – 4.30pm
- Saturday Morning muster: 5.30am-6.30am Morning 7.30am – 12pm
Working hours was displayed at the office's notice board and indicated in Contract agreement - 6am-3pm Rest-11am-12pm 4.4.5.8 The working hours and Refer to 4.4.5.7, the management was complied with ☒ Confirm breaks of each individual the clause. employee as indicated in ☐Minor NC the time records shall “Perjanjian Pekerjaan Pekerja Bukan Pemastautin”, comply with legal ☐Major NC a contract for 01586 as sprayer were sighted, the regulations and minimum salary is adequately followed the ☐OFI collective agreements. requirement by the law with working hours from 7am Overtime shall be - 4pm with lunch hour on 12pm-1pm mutually agreed and shall always be compensated at the rate applicable and shall
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meet the applicable legal requirement.
4.4.5.9 It was noted that the workers did not take overtime ☒ Confirm Wages and overtime and comfortable to collect piece rate work to obtain sufficient payment for every month. payment documented ☐Minor NC
on the pay slips shall be Sighted at Desacorp, the payslip for 01586 for month ☐Major NC in line with legal of December 2019 with OT payment made. regulations and ☐OFI collective agreements. All the employees at Suajaya Mahir Crop, Delta- Pelita Sebakong and Desacorp Sdn Bhd are paid following the minimum wages requirement. 4.4.5.10 It was noted from Delta-Pelita: ☒ Confirm Other forms of social 1. Family Day for Staff and management Team benefits should be 2. Labour’s Day Sport ☐Minor NC offered by the employer 3. Annual Sport day for WTK Group. to employees, their 4. Medical care available. ☐Major NC
families or the Desacorp: ☐OFI community such as Socso/ PERKESO/EPF and bonus were provided to incentives for good work local workers. performance, bonus payment, professional For Hari Raya event management contribute rice development, medical 10kg/workers and meat for Hari Raya Korban care and health 2kg/workers. provisions. Transportation also provided for students and also for employees/workers going to clinic etc. 4.4.5.11 In cases where on-site It was sighted during site visit, living quarters was ☒ Confirm living quarters are habitable in Delta-Pelita Sebakong, Suajaya Mahir provided, these quarters Crop and Desacorp Sdn Bhd. ☐Minor NC shall be habitable and have basic amenities Rain water harvesting is in practise and during ☐Major NC and facilities in drought season, water will be sent to the workers’ houses. ☐OFI compliance with the
Workers' Minimum
Standards Housing and Amenities Act 1990 (Act 446) or any other applicable
legislation.
4.4.5.12 The management shall Management has established Sexual Harassment ☒ Confirm establish a policy and and violence prevention Policy signed by Director provide guidelines to dated 20 April 2017. ☐Minor NC
prevent all forms of And no issues arise during interview with workers. ☐Major NC sexual harassment and
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violence at the ☐OFI workplace.
4.4.5.13 The management shall Refer to Social Practice Policy, management are ☒ Confirm respect the right of all allowed the workers to join trade union of their employees to form or choices. ☐Minor NC join trade union and allow workers own ☐Major NC representative(s) to ☐OFI facilitate collective bargaining in accordance with applicable laws and regulations. Employees shall be given the freedom to join a trade union relevant to the industry or to organize themselves for collective bargaining.
Employees shall have the right to organize and negotiate their work conditions. Employees exercising this right should not be discriminated against or suffer repercussions.
4.4.5.14 Children and young Management has stated in their policy refer to the ☒ Confirm persons shall not be Social Practice Policy, dated 1/8/2017, signed by employed or exploited. Director, stated that the “does not condone forced ☐Minor NC The minimum age shall labour or child labour”. comply with local, state ☐Major NC and national legislation. Management does not condone forced labour or ☐OFI Work by children and child labour. young persons is During site visit and interview, it was noted no acceptable on family children and young person are employed. farms, under adult supervision, and when not
interfering with their education. They shall not be exposed to hazardous working conditions.
Criterion 4.4.6: Training and competency
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4.4.6.1 All employees, Training program for year 2019 and 2020 for 3 ☒ Confirm contractors and relevant estates is available. smallholders are ☐Minor NC appropriately trained. A Refer to Doc. No : DPS/MSPO-12-1a Rev. No: 03 training programme Sighted training procedure in Desacorp as ☐Major NC (appropriate to the scale DSC/MSPO-13-1 dated 17/7/2018, providing of the organization) that ☐OFI training schedule, training method with an example includes regular of: assessment of training needs and -Types of training and their mode such as: documentation, a) Bulletin board and the mode posters, news including records of clipping and photographs training shall be kept. b) Formal training and the mode such as quality awareness, specific course c) On the job training and the mode is instruction/supervision
4.4.6.2 Training needs of Doc. No DPS/MSPO-12-1b Rev.00 Date02/1/2019 ☒ Confirm individual employees Refer to Training Matrix for year 2019 established shall be identified prior to and maintained by the management, the ☐Minor NC the planning and management comply the requirement. implementation of the ☐Major NC training programmes in Training needs of individual employees have been order to provide the identified. Refer to DSC/MSPO-12-1a ☐OFI specific skill and Refer to Training Matrix for year 2019 established competency required to and maintained by the management, the all employees based on management complied the requirement. their job description. 4.4.6.3 A continuous training Refer to continuous improvement plan under ☒ Confirm programme should be training and development. planned and ☐Minor NC implemented to ensure A training programme has been planned for the that all employees are year of 2019, the training is mainly on: ☐Major NC well trained in their job - harvesting - spraying ☐OFI function and - chemical handling responsibility, in - manuring accordance to the - Pest and disease management documented training - Weed management procedure. - Workshop and store - Drive - Genset - Water treatment plant - Security control - MSPO Awareness - OSHA Awareness - Environmental Awareness - Complaint and grievances - Sexual harassment and violence prevention programme - Avenza map - Emergency Response Plan - First Aid training
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4.5 Principle 5: Environment, natural resources, biodiversity and ecosystem services
Criterion 4.5.1: Environmental Management Plan
4.5.1.1 An environmental policy The Policy on Environment is together with Health ☒ Confirm and management plan in and Safety Policy, dated 10 June 2017 and signed compliance with the by the Director. ☐Minor NC relevant country and state environmental laws Also, sighted the Environment Management Plan ☐Major NC shall be developed, (EMP), Doc. DPS/MSPO-13-1, dated 2/1/2019 for effectively communicated ☐OFI and implemented. Delta pelita and EMP Doc. DSC/MSPO-13-1, and dated 2/1/2019 for Desacorp.
4.5.1.2 a) Management has established environmental ☒ Confirm The environmental Improvement plan that covering: management plan shall 1. Water quality and water availability ☐Minor NC cover the following: 2. Contamination Of soil and water ☐Major NC a) An environmental 3. Air pollution policy and objectives. ☐OFI b) The aspects and b) Aspect and impact analysis of all operation has
impacts analysis of all been identified in environmental Improvement plan. operations. Refer to Doc No SJM/MSPO-13-2a.
Criterion / Indicator Evidence / Finding Result
Environmental aspect and impact evaluation ☒ Confirm procedure for Delta-Pelita sighted at Doc. No. DPS/MSPO-13-2, dated 2/1/2019. And ☐Minor NC Environmental Improvement Plan at DSP/MSPO- 13-2a, dated 5/12/2019. ☐Major NC An environmental improvement plan to Environmental aspect and impact evaluation ☐OFI mitigate the negative procedure for Desacorp sighted at Doc. No. 4.5.1.3 impacts and to promote DSC/MSPO-13-2, dated 2/1/2019. And the positive ones, shall Environmental Improvement Plan at DSP/MSPO- be developed, 13-2a, dated 5/12/2019. effectively implemented and monitored. Environmental Improvement was established to mitigate negative impact and promote positive and was effectively implemented and monitored. During site visit, it was noted the implementation was effectively. Refer to Doc No SJM/MSPO-13-2a.
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Environmental Improvement plan were sighted, ☒ Confirm Doc. No. DSP/MSPO-13-2a for Delta-Pelita and, Doc. No. DSC/MSPO-13-2a for Desacorp and also ☐Minor NC A programme to Suajaya Mahir Crop with same dated 5/12/2019, promote the positive with plan/programme on: ☐Major NC 4.5.1.4 impacts should be - water quality and water availability included in the continual (conservation of water resources etc) ☐OFI improvement plan. - Contamination of soil and water - Chemical and Oil spillage - Eutrophication of aquatic environment - Air Pollution For Delta-Pelita Sebakong, ☒ Confirm Awareness training conducted at the site line regarding the “Taklimat Kebersihan Kawasan ☐Minor NC perumahan” on the 22/2/2019, 3pm – 4.30pm. Participants all from Block D11-D20. ☐Major NC
Apart of that, practices during morning muster on ☐OFI sharing of environment and other issues as well. An awareness and For example: training programme - “Kesedaran Alam Sekitar dan Penjimatan Air” by shall be established and En. Jimmy Empra implemented to ensure 8/11/2019 at work site to all DPS workers. that all employees understand the policy For Desacorp Sdn Bhd 4.5.1.5 and objectives of the Awareness conducted/briefed during morning environmental muster on the “Kesedaran Alam Sekitar” and other management and related issues is being practised by Desacrop Sdn improvement plans and Bhd. The evidence were sighted in the training file are working towards DSC/MSPO-12 achieving the objectives. For Suajaya Mahir Crop Awareness training was conducted to employee. Evidence: Latihan Kesedaran Alam Sekitar dan Penjimatan penggunaan Air dated 15/10/2019 Kesedaran Zon Penampan/Buffer Zone Awareness dated 24/10/2019
For Delta-Pelita Sebakong ☒ Confirm Minutes of meeting for environment was available, dated 3/12/2019 from 4 – 5pm, conducted at Bilik ☐Minor NC Management shall Mesyuarat Delta-Pelita Sebakong. Amongst the issue discussed were: ☐Major NC organize regular - Water treatment plant meetings with - Wildlife ☐OFI 4.5.1.6 employees where their - Upkeep of Store and workshop etc. Meeting concerns about adjourned at 5pm environmental quality are discussed. The minutes was prepared by Enja Ak Belayong , checked by En. Jerry Ak Berik and verified by En. Beding Ak Bantin
For Desacorp Sdn Bhd
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Minutes of meeting for environment was available, dated 27/12/2019 conducted at Bilik Mesyuarat Desacorp Sdn Bhd started at 4pm. Amongst the environment issues discussed were: - Cleanliness on the site line - Water source and pipe - Wildlife - Bufferzone - Upkeep of Store and workshop etc. Meeting adjourned at 5.07pm (OSHA meeting - 27/12/2019)
For Suajaya Mahir Crop Meeting was conducted for MSPO (environment, Natural Resources Biodiversity and Ecosystem) dated 8/11/2019 chairman by Mr Mohd Nor Firdaus. Minutes meeting available.
Criterion 4.5.2: Efficiency of energy use and use of renewable energy
For Delta-Pelita Sebakong ☒ Confirm Monthly records of fuel consumption are available with the baseline figure to ascertain the over or under ☐Minor NC use of diesel for the purpose of monitoring and planning (Refer Doc. DPS/MSPO-14). They have ☐Major NC records on: - Monitoring Record of Fuel Usage by Categories ☐OFI (DPS/MSPO-14-1a) Consumption of non- - Annual Budget Comparison of Non-Renewable renewable energy shall Energy (DPS/MSPO-14-1b) be optimized and closely - Fuel Baseline Value Estimation (DPS/MSPO-14-1c) monitored by establishing
baseline values and For Desacorp Sdn Bhd: trends shall be observed Monthly records of fuel consumption is available with within an appropriate the baseline figure to ascertain the over or under use 4.5.2.1 timeframe. There should of diesel for the purpose of monitoring and planning be a plan to assess the (Refer Doc. DSC/MSPO-14). They have records on: usage of non-renewable - Monitoring Record of Fuel Usage by Categories energy including (DSC/MSPO-14-1a) fossil fuel, electricity and - Annual Budget Comparison of Non-Renewable energy efficiency in the Energy (DSC/MSPO-14-1b) operations over the base - Fuel Baseline Value Estimation (DSC/MSPO-14-1c) period. For Suajaya Mahir Crop - Diesel consumption for year 2019 was recorded and monitored. -Remark put by the management due to high consumption from budget for Feb-June 2019 is due to replanting activities. Refer Doc No SJM/MSPO-14- 1b.
The oil palm premises Delta-Pelita Sebakong: ☒ Confirm 4.5.2.2 shall estimate the direct The estimate of non-renewable energy is sighted on usage of non-renewable DPS/MSPO-14-1b on: ☐Minor NC energy for their
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operations, including For example, average diesel usage for 2019 is ☐Major NC fossil fuel, and electricity 405,561 litres, whilist for gen-set is 12,398 litres to determine energy (Refer Doc. DPS/MSPO-14-1c). ☐OFI efficiency of their operations. This shall Desacorp: include fuel use by The estimate of non-renewable energy is sighted on DSC/MSPO-14-1b on: contractors, including all For example, average diesel usage for 2019 is transport and machinery 36765 litres (DSC/MSPO-14-1c)., whilist average for operations. gen-set is 13319 litres (Refer Doc. DSC/MSPO-14- 1c).
Suajaya Mahir: Estimation of usage for year 2019 are available including genset, machinery and transport fuel usage ☒ Confirm
☐Minor NC The use of renewable 4.5.2.3 energy should be applied No renewable energy used in estate ☐Major NC where possible. ☐OFI
Criterion 4.5.3: Waste management and disposal
4.5.3.1 All waste products and Management has identified and documented all ☒ Confirm sources of pollution shall waste as per followed. be identified and 1. Scheduled Waste ☐Minor NC documented. 2. Domestic Waste 3. Reuse Waste ☐Major NC 4. General Waste ☐OFI 5. Recycle Waste 6. Clinical Waste
Refer to Doc No Master List of Estate Waste. Sighted the estate waste management procedure, document number DSC/MSPO-15-1 dated 2/1/2019.
4.5.3.2 A waste management Delta Pelita: ☒ Confirm plan to avoid or reduce Referred to Estate Waste Management pollution shall be (DPS/MSPO-15-1), the measures to dispose the ☐Minor NC developed and related waste is documented and the record is implemented. The waste provided such as: ☐Major NC management plan - Pollution mitigation plan (DPS/MSPO-15-1a) should include - GHG Record (DPS/MSPO-15-1b) ☐OFI measures for: - Scheduled Waste Record (DPS/MSPO-15-1c) a) Identifying and - Domestic Waste Record (DPS/MSPO-15-1d) monitoring sources of waste and - Clinical Waste Record ((DPS/MSPO-15-1e) pollution. - Recyclable Items Record (DPS/MSPO-15-1f)
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b) Improving the - General Waste Record (DPS/MSPO-15-1g) efficiency of resource utilization Desacorp: and recycling of Referred to Estate Waste Management potential wastes as (DSC/MSPO-15-1), the measures to dispose the nutrients or related waste is documented and the record is converting them into provided such as: value-added by- - Pollution mitigation plan (DSC/MSPO-15-1a) products. - GHG Record (DSC/MSPO-15-1b) - Scheduled Waste Record (DSC/MSPO-15-1c) - Domestic Waste Record (DSC/MSPO-15-1d) - Clinical Waste Record ((DSC/MSPO-15-1e) - Recyclable Items Record (DSC/MSPO-15-1f) - General Waste Record (DSC/MSPO-15-1g)
Suajaya Mahir: Referred to Estate Waste Management (SJM/MSPO-15-1), the measures to dispose the related waste is documented and the record is provided such as: - Pollution mitigation plan (SJM/MSPO-15-1a) - GHG Record (SJM/MSPO-15-1b) - Scheduled Waste Record (SJM/MSPO-15-1c) - Domestic Waste Record (SJM/MSPO-15-1d) - Clinical Waste Record (SJM/MSPO-15-1e) - Recyclable Items Record (SJM/MSPO-15-1f) - General Waste Record (SJM/MSPO-15-1g) Criterion / Indicator Evidence / Finding Result
Delta-pelita: ☒ Confirm Under Estate Waste Management Procedure (DPS/MSPO-15-1) for example on scheduled waste ☐Minor NC management, domestic and general waste and recycling programme were sighted. ☐Major NC The management shall Briefing on recycle done during morning muster. establish Standard ☐OFI Operating Procedure Desacorp: for handling of used Under Estate Waste Management Procedure chemicals that are (DSC/MSPO-15-1) for example on scheduled waste classified under management, domestic and general waste and 4.5.3.3 Environment Quality recycling programme were sighted. Regulations (Scheduled Briefing on recycle done during morning muster. Waste) 2005, Environmental Quality Suajaya Mahir Crop Act, 1974 to ensure Sighted procedure for Waste Management procedure proper and safe for handling, storage and disposal of used chemical. handling, storage and Refer to Doc No SJM/MSPO-15-1 dated 15/08/2017. disposal. During the site visit, it was noted scheduled waste item were stored appropriately and disposed followed the act. Inventory record also available. 1) Consignment Note for Scheduled Waste Name of Waste – used Lubricating Oil Waste Code – SW305
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Waste Generator- Suajaya Mahir Crop Sdn Bhd License contractor – TLM Tiasa Hijau S/B Quantity – 21 Drum Dated disposed -18/9/2019
Delta Pelita; ☒ Confirm Empty pesticide Empty pesticides containers were punctured and containers shall be triple rinsed, but some of the used empty pesticides ☐Minor NC punctured and disposed containers were used to store water for spraying in an environmentally purposes with a proper labelling (marked with X). ☐Major NC and socially responsible way, such that there is Desacorp: ☐OFI no risk of contamination Normal procedure was followed such as empty pesticides containers were punctured and triple of water sources or to rinsed, but some of the used empty pesticides human health. The container were used to store water for spraying 4.5.3.4 disposal instructions on purposes with a proper labelling (marked with X). manufacturer’s labels should Suajaya Mahir:
be adhered to. Normal procedure was followed such as empty Reference should be pesticides containers were punctured and triple made to the national rinsed, but some of the used empty pesticides programme on container were used to store water for spraying recycling of used HDPE purposes with a proper labelling (marked with X). pesticide containers.
Delta-Pelita Sebakong ☒ Confirm Domestic waste normally sent to the dumpsite after segregate it, at an identified area within the estate ☐Minor NC (some item can be recycled). The filled dumpsite closed and a signage were sighted. The wastes from ☐Major NC workers’ quarters were collected 3 times a week. ☐OFI Desacorp: Domestic waste sends to the landfill that manage by Municipal Council for Dalat and Mukah. The waste Domestic waste should was collected 3 times a week. be disposed as such to Sighted the letter from Municipal council (Ref: minimize the risk of 4.5.3.5 MDDM/PH/22/JLD2) dated 11/1/2019 on “Khidmat contamination of the Pungutan sampah domestic di lading Desacorp Sdn. environment and Bhd” watercourses. Suajaya Mahir Crop
Domestic waste was disposed to landfill at Block 101. Management weight out the Domestic waste to monitor and minimize the risk of contamination to environment. Sample ticket; Vehicle No – AT14 Material -Domestic Waste Weight – 850kg Date: 15/12/2019
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Criterion 4.5.4: Reduction of pollution and emission
4.5.4.1 Delta-Pelita Sebakong ☒ Confirm Calculation of GHG emission done for the year 2019 (January to November) for pesticide, fertillizer, ☐Minor NC diesel, lubricating oil, petrol, electricity (using Palm Oil greenhouse gas calculator according to EU ☐Major NC Directive 2009/28/EC) is: CO2 emissions from oil palm cultivation amount to ☐OFI 47.05kg/CO2eq/Mt FFB
Desacorp Sdn Bhd Calculation of GHG emission done for the year 2019 An assessment of all (January to November) for pesticide, fertillizer, polluting activities shall diesel, lubricating oil, petrol, electricity (using Palm be conducted, including Oil greenhouse gas calculator according to EU greenhouse gas Directive 2009/28/EC) is: emissions, scheduled CO2 emissions from oil palm cultivation amount to wastes, solid wastes and 92.10kg/CO2eq/Mt FFB. With the size of FFB batch: effluent. 27000.00kg
Suajaya Mahir Crop Calculation of GHG emission done for the period Jan - Dec 2019 for pesticide, fertilizer, diesel, lubricating oil, petrol, electricity for 6005.79ha 1. FFB batch - 27680kg 2. GHG emission - 53.78Kg CO2eq/MT FFB 3. Lubricant - 5.09 kg/ha/yr 4. Pesticide - 1.76kg/ha/yr
4.5.4.2 Delta-Pelita Sebakong ☒ Confirm Pollution Mitigation Plan DPS/MSPO-15-1a on reduction of significant pollutants and emissions are ☐Minor NC available. The area of concern is: - Diesel storage area ☐Major NC - Workshop - Generator room ☐OFI - Store - Housing site An action plan to reduce - Planting areas, main and field drains, identified significant - waste (Landfill area) pollutants and emissions - GHG emissions shall be established and implemented. Desacorp: Pollution Mitigation Plan DSC/MSPO -15-1a on reduction of significant pollutants and emissions are available. The area of concern is: - Diesel storage area - Workshop - Generator room - Store - Housing site - Planting areas, main and field drains,
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- GHG emissions
For Suajaya Mahir, it is similar to Delta-Pelita Sebakong and Desacorp Sdn Bhd.
Criterion / Indicator Evidence / Finding Result
Criterion 4.5.5: Natural water resources
4.5.5.1 The management shall Delta-Pelita Sebakong: ☒ Confirm establish a water management Sighted the water management procedure, plan to maintain the quality and doc number DPS/MSPO-16-1, dated ☐Minor NC availability of natural water 2/1/2019. Under the procedure they resources (surface and ground highlighted: ☐Major NC water). The water management - water usage monitoring plan may include: - water wastage reduction ☐OFI Records for: a) Assessment of water usage and sources of supply. - Monitoring Record of water consumption (DPS/MSPO-16-1a) b) Monitoring of outgoing water - Water Management Plan (DPS/MSPO-16- which may have negative 1b) impacts into the natural waterways at a frequency a)Sighted the monitoring record of daily water that reflects the estate’s usage for 2019. For example, the usage in current activities. December was about 147 litre/person/day
c) Ways to optimize water and Under the water management plan the aspect nutrient usage to reduce wastage (e.g. having in and impact has been identified; such as on: place systems for re-use, - Water usage monitoring night application, - Water wastage reduction maintenance of equipment - Water quality monitoring (which conducted to reduce leakage, collection by Chemsain Konsultant Sdn Bhd and the of rainwater, etc.). latest report received on the 20/12/2019), looking at the parameter such as pH, colour, d) Protection of water courses turbidity, etc which all the result was within the and wetlands, including parameter limit maintaining and restoring
appropriate riparian buffer zones at or before planting or Desacorp: replanting, along all natural Sighted the water management procedure, doc number DSC/MSPO-16-1, dated waterways within the estate. 2/1/2019. Under the procedure they e) Where natural vegetation in highlighted: riparian areas has been - water usage monitoring removed, a plan with a - water wastage reduction timetable for restoration Records for: shall be established and - Monitoring Record of water consumption implemented. (DSC/MSPO-16-1a) - Water Management Plan (DSC/MSPO-16- f) Where bore well is being 1b) use for water supply, the level of the ground water
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table should be measured at a) Sighted the monitoring record of daily water least annually. usage for 2019. For example, the usage in December for 98 residents was about m3/person/day
Under the water management plan the aspect and impact has been identified; such as on: - Water usage monitoring - Water wastage reduction - Water quality monitoring (which conducted by Palmvest Flow Engineering Sdn Bhd and the latest report received on the 29/11/2019), looking at the parameter such as pH, colour, turbidity, etc which all the result was within the parameter limit
For Suajaya Mahir Crop Management has established Water management procedure by refer to Doc No SJM/MSPO-16-1 dated 15/8/2017 a) Sighted monitoring record of Daily Usage Year 2019. Workers using water from rain harvesting.
b) Environmental Monitoring report was conducted quarterly to check water quality at Sg anak, Sg Sarupai and field drain. c) Reuse of water from chemical mixing, Collection of rainwater for daily use at workers housing. Riparian buffer zone was maintained at Block 14 with proper signage.
4.5.5.2 ☒ Confirm No construction of bund sighted. ☐Minor NC No construction of bunds, weirs and dams across main rivers or ☐Major NC waterways passing through an estate. ☐OFI
4.5.5.3 Delta-Pelita Sebakong: ☒ Confirm Water harvesting practices Besides the normal rain water harvesting at should be implemented (e.g. the quarters and offices, DPS also practices to ☐Minor NC water from road-side drains collect water in the field, such as at the can be directed and stored in terraces, pits and drains. ☐Major NC conservation terraces and various natural receptacles). Desacorp: ☐OFI Besides the normal rainwater harvesting at the quarters and offices, DSC also practices
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to collect water in the field, such as at the terraces, pits and drains.
Suajaya Mahir Crop: Water harvesting is in-place at the labour quarter at Suajaya Mahir Estate.
Criterion 4.5.6: Status of rare, threatened, or endangered species and high biodiversity value area
4.5.6.1 Delta-Pelita Sebakong: ☒ Confirm Records on wildlife and biodiversity areas is very well presented. Mr. Lau Sang is appointed ☐Minor NC as person of in charge on wildlife issue under their Environmental Committee. ☐Major NC For example, sighted (in 2019) species such as monitor lizard, reticulated python, Python ☐OFI curtus, Cuora amboinenesis, Egret, Zebra dove, Centropus sinensis Information shall be collated that Sighted wildlife posters with the information includes both the planted area and Status of RTE species are placed at the itself and relevant wider office, labour line and AP post. The posters landscape-level considerations were published by Forest Department of (such as wildlife corridors). This Sarawak.
information should cover: Desacorp: a) Identification of high Records on wildlife and biodiversity areas is biodiversity value habitats, very well presented. such as rare and threatened For example, sighted (in May 2019) species ecosystems, that could be such as monitor lizard, reticulated python, significantly affected by the Egret, Zebra dove, grower(s) activities. Sighted wildlife posters with the information b) Conservation status (e.g. The and Status of RTE species are placed at the International Union on office. The posters were published by Forest Conservation of Nature and Department of Sarawak. Natural Resources (IUCN) Desacorp Sdn Bhd also prepared their status on legal protection, Biodiversity Management Plan (DSC/MSPO- 17-1b), whereby aspect, areas have been population status and habitat identified on: requirements of rare, - Forest adjacent to estate’s boundaries threatened, or endangered - Biological diversities in and around estates species), that could be - Rivers and streams flowing through the significantly affected by the estate grower(s) activities. Bufferzone Management Plan was sighted (DSC/MSPO-17)
For Suajaya Mahir Crop Management do record for wildlife especially Rare, threatened and endangered species.
Refer to Doc record pemantauan /pemeriksaan hidupan liar dalam ladang.
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Management has established Biodiversity Management plan to identify of high biodiversity value habitats.
4.5.6.2 Delta-Pelita Sebakong: ☒ Confirm a) Posters and wildlife monitoring were available. ☐Minor NC b) Signage on “No hunting/Fishing’ can be seen. ☐Major NC If rare, threatened or endangered species, or high One important observation during the site visit ☐OFI biodiversity value, are present, in the plantation was the feedback received appropriate measures for from one of the harvesters, he told the auditors management planning and that if he sighted any wildlife, he will try to operations should include: chase it before harvesting the fruit. He said most of the time he encountered wildlife a) Ensuring that any legal especially snakes (such as reticulated python) requirements relating to the curls at the palm oil frond or fruits. protection of the species are met. Desacorp: b) Discouraging any illegal or a) Posters and wildlife monitoring were inappropriate hunting, fishing available. or collecting activities and b) Signage on “No hunting/Fishing’ can be developing responsible seen at the gate and all bufferzone measures to resolve human- wildlife conflicts. Suajaya Mahir Crop a) Posters and wildlife monitoring were available. b) Management has put in signage of NO Hunting and No Fishing to ensure no illegal hunting or fishing. 4.5.6.3 Delta-Pelita Sebakong: ☒ Confirm The management has established the relevant plans to ensure that the activities is ☐Minor NC implemented. DPS has set a Environment Committee where by Mr. Lau Sing as been ☐Major NC appointed as a person in charge of wildlife. ☐OFI Desacorp: A management plan to comply The management has established the relevant with Indicator 1 shall be plans to ensure that the activities is established and effectively implemented. DSC has appointed their implemented, if required. Division Manager as their Environment Officer dated 3/9/2019 signed by Senior General Manager.
Suajaya Mahir Crop: Biodiversity Management plan has established to monitor and implemented the action plan. Refer to Doc No SJM/MSPO-17-1b.
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Criterion 4.5.7: Zero burning practices
Not Applicable ☒ Confirm
Use of fire for waste disposal ☐Minor NC and for preparing land for oil 4.5.7.1 palm cultivation or replanting ☐Major NC shall be avoided except in specific situations, as identified ☐OFI in regional best practice.
Not Applicable ☒ Confirm A special approval from the relevant authorities shall be ☐Minor NC sought in areas where the 4.5.7.2 previous crop is highly diseased ☐Major NC and where there is a significant risk of disease spread or ☐OFI continuation into the next crop.
Criterion / Indicator Evidence / Finding Result
☒ Confirm
Where controlled burning is ☐Minor NC allowed, it shall be carried out as prescribed by the Environmental 4.5.7.3 Not Aplicable ☐Major NC Quality (Declared Activities) (Open Burning) Order 2003 or ☐OFI other applicable laws.
☒ Confirm
Previous crops should be felled ☐Minor NC or mowed down, chipped and 4.5.7.4 shredded, windrowed or Not Applicable ☐Major NC pulverized or ploughed and mulched. ☐OFI
4.6 Principle 6: Best Practices
Criterion 4.6.1: Site Management
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Criterion / Indicator Evidence / Finding Result
4.6.1.1 It was referred to manual Safety and Health ☒ Confirm Work procedures in Oil Palm Plantation which was noted as applicable for all oil palm ☐Minor NC plantation under WTK Group. Effective date: 15/8/2017 ☐Major NC
☐OFI It was appropriately documented and Standard operating consistently implemented and monitored. procedures shall be Observed during site visit that the operation to appropriately documented eliminate vollunteer Oil Palm Seedlings and consistently implemented (VOPS) has been operated. Even, the and monitored. management already have VOPs Control program as continual improvement plan. There was no significant negative finding on best practices during side visit especially when refer to the action plan as well as the commitment and responsibility of the management were adhered during audit.
4.6.1.2 Where oil palm is grown Sighted during site visit at slope undulating ☒ Confirm within permitted levels on area, the management was maintaining sloping land, appropriate soil frond stacking to control erosion. In fact, ☐Minor NC conservation measures shall there are no steep hilly area in these 3 be implemented to prevent estates. ☐Major NC both soil erosion as well as ☐OFI siltation of drains and waterways. Measures shall be put in place to prevent
contamination of surface and groundwater through runoff of either soil, nutrients or
chemicals.
4.6.1.3 A visual identification or Sighted visual identification available and ☒ Confirm reference system shall be readable during site visit as below: established for each field. Delta-Pelita Sebakong: ☐Minor NC 1.Block : D02 2.Area: 24.89 Ha ☐Major NC 3. Year Planted : 2004 4. Planting Material : HRU ☐OFI
Desacorp: Phase (PH): 2 Block Number (BN): E09 Area: 29.54 Ha Year Planted:2009
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Planting Material: Felda/HRU
Suajaya Mahir Crop: Management using zinc plate with field no to identify block No. Example Block 34 and Block 14
Criterion 4.6.2: Economic and financial viability plan
4.6.2.1 A documented business or Annual Budget For Delta-Pelita Sebakong, ☒ Confirm management plan shall be Suajaya and Desacorp for year 2018/2019 established to demonstrate and 2019/2020 was available. ☐Minor NC attention to economic and financial viability through ☐Major NC long-term management planning. ☐OFI
4.6.2.2 Where applicable, an annual For Delta-Pelita Sebakong: ☒ Confirm replanting programme shall Replanting program was noted as not be established. Long term applicable yet in 5 years ahead due to ☐Minor NC replanting programme should commercial age still available in 6 years and be established and review above. Early planted was in 2004. ☐Major NC annually, where applicable every 3-5 years. And for Suajaya Replanting Programme ☐OFI Replanting programme from 2018-2025 1. 2018-193.55ha 2. 2019-371.53ha 3. 2020-973.24ha
4.6.2.3 The business or management Refer to the budget 2019/2020: ☒ Confirm plan may contain: a) Planting material recorded as HRU, and a) Attention to quality of Yangambi. ☐Minor NC planting materials and FFB. b) Site yield Potential: 20 MT for year 2020; b) Crop projection: site yield FFB Trends will be peak on July to November ☐Major NC potential, age profile, FFB was assumed. yield trends. c) Cost of production and d) price forecast are ☐OFI c) Cost of production: cost per included in the budget report. tonne of FFB. e) it was noted through budget that the d) Price forecast. financial indicator for Delta-Pelita is based on e) Financial indicators: cost return and investment due to inconsistence benefit, discounted cash and irregular price condition. flow, return on investment.
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4.6.2.4 The management plan shall The management plan was noted and ☒ Confirm be effectively implemented observed effectively implemented by and the achievement of the executing the monitoring checklist for every ☐Minor NC goals and objectives shall be work progress. Updating record progressively regularly monitored, and continuosly control is check roll book also ☐Major NC periodically reviewed and applicable. ☐OFI documented. The evidence of effectively implementing the monitoring systems as below: 1. updated checkroll 2. Month work progress 3. Work Inspection form 4. Pierce rate distribution input Chit 5. Pierce rate Distribution report -systems 6. Avenza Map Tracking App System
Criterion 4.6.3: Transparent and fair price dealing
4.6.3.1 Pricing mechanisms for the Refer to official circular letter of current rate of ☒ Confirm products and other services payment DELTA-PELITA SEBAKONG SDN shall be documented and BHD with date:.25/10/2019 , the evidence of ☐Minor NC effectively implemented. pricing mechanisms are available: 1. Harvesting ☐Major NC 2. Pruning ☐OFI 3. Weeding: - Circle & path - Selective - Lalang - Slashing - VOPs - Pricing mechanism also refer to MPOB price.
4.6.3.2 All contracts shall be fair, ☒ Confirm legal and transparent and agreed payments shall be ☐Minor NC made in timely manner. No contractor engaged. ☐Major NC
☐OFI
Criterion 4.6.4: Contractor
4.6.4.1 Where contractors are No contractor engaged. ☒ Confirm engaged, they shall understand the MSPO ☐Minor NC requirements and shall provide the required ☐Major NC documentation and information. ☐OFI
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4.6.4.2 The management shall No contractor engaged. ☒ Confirm provide evidence of agreed contracts with the contractor. ☐Minor NC
☐Major NC
☐OFI
4.6.4.3 The management shall ☒ Confirm accept MSPO approved auditors to verify DQS CFS Certification (M) Sdn Bhd has been ☐Minor NC assessments through a appointed as approved competence auditors physical inspection if providors. ☐Major NC required. ☐OFI
4.6.4.4 The management shall be ☒ Confirm responsible for the observance of the control ☐Minor NC points applicable to the tasks performed by the contractor, No contractor engaged. ☐Major NC by checking and signing the ☐OFI assessment of the contractor for each task and season contracted.
4.7 Principle 7: Development of new planting
Criterion 4.7.1: High biodiversity value
4.7.1.1 ☒ Confirm
Oil palm shall not be planted ☐Minor NC on land with high biodiversity value unless it is carried out in Not Applicable ☐Major NC compliance with the National and/or State Biodiversity ☐OFI Legislation.
4.7.1.2 No conversion of ☒ Confirm Environmentally Sensitive Areas (ESAs) to oil palm ☐Minor NC
as required under Peninsular ☐Major NC Malaysia’s National Physical Plan (NPP) and the Sabah Not Applicable ☐OFI Forest Management Unit
under the Sabah Forest Management License Agreement. For Sabah and Sarawak, new planting or replanting of an area 500ha or
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more requires an EIA. For areas below 500ha but above 100ha, a Proposal for Mitigation Measures (PMM) is required.
Criterion 4.7.2: Peat land
4.7.2.1 ☒ Confirm
New planting and replanting ☐Minor NC may be developed and implemented on peat land as Not Applicable ☐Major NC per MPOB guidelines on peat land development or industry ☐OFI best practice.
Criterion 4.7.3: Social and Environmental Impact Assessment (SEIA)
4.7.3.1 ☒ Confirm A comprehensive and participatory social and ☐Minor NC environmental impact Not Applicable assessment shall be ☐Major NC conducted prior to establishing new plantings or ☐OFI operations.
Criterion / Indicator Evidence / Finding Result
4.7.3.2 SEIAs shall include previous ☒ Confirm land use or history and involve independent ☐Minor NC consultation as per national Not Applicable and state regulations, via ☐Major NC participatory methodology ☐OFI which includes external stakeholders.
4.7.3.3 The results of the SEIA shall ☒ Confirm be incorporated into an appropriate management ☐Minor NC plan and operational Not Applicable procedures developed, ☐Major NC implemented, monitored and ☐OFI reviewed.
4.7.3.4 Where the development ☒ Confirm includes smallholder Not Applicable schemes of above 500ha in ☐Minor NC total or small estates, the
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impacts and implications of ☐Major NC how each scheme or small ☐OFI estate is to be managed should be documented and a plan to manage the impacts
developed, implemented, monitored and reviewed.
Criterion 4.7.4: Soil and topographic information
4.7.4.1 ☒ Confirm Information on soil types shall be adequate to establish the ☐Minor NC Not Applicable long-term suitability of the land for oil palm cultivation. ☐Major NC ☐OFI 4.7.4.2 Topographic information shall ☒ Confirm be adequate to guide the planning of planting ☐Minor NC Not Applicable programmes, drainage and ☐Major NC irrigation systems, roads and other infrastructure. ☐OFI
Criterion / Indicator Evidence / Finding Result
Criterion 4.7.5: Planting on steep terrain, marginal and fragile soils
4.7.5.1 ☒ Confirm Extensive planting on steep terrain, marginal and fragile ☐Minor NC soils shall be avoided unless Not Applicable ☐Major NC permitted by local, state and national laws. ☐OFI
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4.7.5.2 Where planting on fragile and ☒ Confirm marginal soils is proposed, plans shall ☐Minor NC
be developed and ☐Major NC implemented to protect them Not Applicable and to minimize adverse ☐OFI impacts (e.g. hydrological) or significantly increased risks (e.g. fire risk) in areas outside the plantation.
4.7.5.3 ☒ Confirm
Marginal and fragile soils, ☐Minor NC including excessive gradients Not Applicable and peat soils, shall be ☐Major NC identified prior to conversion. ☐OFI
Criterion 4.7.6: Customary land
4.7.6.1 No new plantings are ☒ Confirm established on recognised customary land without the ☐Minor NC owners’ free, prior and informed consent, dealt with ☐Major NC through a documented ☐OFI system that enables Not Applicable
indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions.
4.7.6.2 ☒ Confirm Where new plantings on recognised customary lands ☐Minor NC are acceptable, management Not Applicable ☐Major NC plans and operations should maintain sacred sites. ☐OFI
Criterion / Indicator Evidence / Finding Result
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4.7.6.3 Where recognized customary ☒ Confirm or legally owned lands have been taken-over, the ☐Minor NC documentary proof of the Not Applicable transfer of rights and of ☐Major NC payment or provision of agreed compensation shall ☐OFI be made available.
4.7.6.4 The owner of recognised ☒ Confirm customary land shall be compensated for any agreed ☐Minor NC land acquisitions and Not Applicable relinquishment of rights, ☐Major NC subject to their free prior ☐OFI informed consent and
negotiated agreement.
4.7.6.5 ☒ Confirm
Identification and assessment ☐Minor NC of legal and recognised Not Applicable customary rights shall be ☐Major NC documented. ☐OFI
4.7.6.6 A system for identifying ☒ Confirm people entitled to compensation and for ☐Minor NC calculating and distributing Not Applicable ☐Major NC fair compensation shall be established and ☐OFI implemented.
4.7.6.7 ☒ Confirm
The process and outcome of ☐Minor NC any compensation claims Not Applicable shall be documented and ☐Major NC made publicly available. ☐OFI
4.7.6.8 ☒ Confirm Communities that have lost access and rights to land for ☐Minor NC plantation expansion should Not Applicable be given opportunities to ☐Major NC benefit from the plantation development. ☐OFI
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Generally, WTK group of management have demonstrated fulfillment of MSPO requirements without any significant findings on Nonconformity and audit team are proposing MSPO Certification to the management.
2.4. Stakeholder’s Consultation Stakeholder consultation process carried out by taking a sample from the list of stakeholders established by Delta-Pelita Sebakong Sdn. Bhd./Desacorp Sdn. Bhd./Suajaya Mahir Crop Sdn.Bhd. It was noted that the objective of activity had met to capture the view, opinion and expectation of interested parties as a result of operation run by the organization. Details of the outcome from the sessions has been reported in 939-D4_MSPO Stakeholder Consultation document.
Stakeholder consultation was carried out successfully by direct interview and also conversation by phone call. It was a great experience of auditors having a good and healthy two way communication. In overall, all stakeholders gave a good feedback on Sustainability in Oil Palm Plantation management executed by the organisation. They also willing to give their cooperation to the management in order to ensure sustainability in oil palm management successful and accepted by European.
About stakeholder consultation carried out by the auditors during audit, It was offsite from audit mandays and Here, there are some specific comment gathered from attended stakeholders:
1. Mr. Dexter from JKKP - he was saying that they visited the mill and estate ‘secara berkala’ abd the companies mostly comply with their regulations. he is requested if the companies be able to assisted them by asking the nearby estates to register with JKKP. He also requested if the auditors can help looking at the environment and social part whilst they look at the health and safetry issues.- By Phonecall
2. Mr. Thomas, DOE
He stated that MSPO is good because it assisted them in implementing the DOE requirements on emission, effluent management etc. So far all the companies within WTK, is committing themselves with the requirement such as on emission, effluent discharge and they also have competent person such as in CepSwam etc. -by Phone call
3. Tuai Rumah Asin
Villagers and rumah panjang always get help from the estate especially in road maintenance and upgrading river widths. The estates also provide job for local citizen.
4. The contractor of Palm Oil Mill
Great cooperation between contractors mill and also all three estate in order to allocate EFB in field. Safety on the road is the most issues concerned by the stakeholders. Thus, the management always ready to help contractor if any problem occurred during any task mission.
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5. Audit Information 5.1. Contact Information Management Representative at site Name Florence Tiong Name: Mr.Yang Wen Yeow Name: Devenderan a/l Title: Sustainability Manager Title: Mill Controller DPSPOM Subramaniam Title: General Manager (Estate)
Tel: +6012-8881611 Tel: 017-8626286 Tel: 019-8853273 Email: [email protected] Email: [email protected] Email: [email protected]
Audit team
Name: Mohd Hidhir bin : Mohd Shauki bin Mohd : Johari bin Mohd Nor : Noorainie binti Awang Hamdan Ghazali Co-Auditor Anak : Audit Team Leader Co-Auditor Co-Auditor
Tel +603-3342 3259 Tel +603-3342 3259 Tel +603-3342 3259 Tel +603-3342 3259 Email Email Email Email [email protected] [email protected]. [email protected] norainie.awanganak@dq y my om.my s.com.my
Name: [Co-Auditor 4] Title Co-Auditor Tel +603-3342 3259 Email
Contact person at DQS Ili Arina Anuar
Tel +603-3342 3259 Email: [email protected]
5.2. Audit Data Audited sites and sampling basis
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Ref. No: 50452006 Shifts:
Main business/processes at location, please specify: Oil Palm Plantations - Individual certification Please refer to Appendix 1: Group Certification Member, MPOB License, Main business/processes at location Sampling site in case of group certification is applied? ☒ Yes ☐No
Complete below section if ‘Yes’
Sampling process is meeting with Malaysian Sustainable Palm ☒ Yes ☐ Oil (MSPO) Certification System Procedure? No
Site sample; S = r√n S = sample size
n = number of group members
r = Risk factor (Low, medium or high)
5.3. List of the site audited each year please refer to Appendix 1: Group Certification Member, MPOB License, Main business/processes at location
5.4. Audit Result Current scope of registration: Oil Palm Plantations - Individual certification Production of Sustainable Fresh Fruit bunches from 26,905.60 ha total oil palm planted area
28,619.14 ha total certified area
The top level of Management System manual and Current revision of manual: related management system documentation were reviewed and found to conform to all applicable ☒ Yes ☐ No standard requirements for documentation. Remarks: Refer to SOP each estate respectively. (DPS/MSPO, DCS/MSPO and SMC/MSPO) In case of surveillance audit ☐ Yes ☐ No Changes to the management system, its Remarks: documentation, processes, or structures have been implemented.
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In case of recertification audit ☒ Yes, management review records indicate The overall system performance for the past achievement of established objectives and certification cycle demonstrates the continued continuous improvement. effectiveness of the system. (two criteria for evaluation) ☐ Yes, trends of corrective action records indicate effectiveness and continuous improvement. ☐ No, see remarks and corrective action plan Remarks:
Internal audits and corrective action records show ☒ Yes ☐ No continued conformance of the management system to selected standards. Remarks:
In the past certification period, similar findings were ☐ Yes ☒ No identified repeatedly Remarks:
In the past certification period, the certification was ☐ Yes ☒ No placed under probation or suspension or special audits were performed to address deficiencies Remarks:
The management system is effective and fulfils the ☒ Yes requirements: ☐ Only partly – see corrective action plans ☐ No – see corrective action plans (if have major NC that can jeopardize the whole management system. eg: land issues) Number of findings: Major nonconformities: Nil Minor nonconformities: Nil On site verification of nonconformities needed via ☐ Yes ☒ No follow-up / special audits:
The agreed corrective actions of the previous ☒ Effectively implemented audits are ☐ Not effectively implemented Remarks: ☐ This appraisal is not applicable.
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The current registration certificate was ☒ Yes ☐ No reviewed and found to be accurate. Remarks: expiration date: Delta-Pelita Sebakong Sdn Bhd Date of Certification: 31/7/2019 Valid until: 30/7/2024 Desacorp Sdn Bhd Date of Certification: 7/5/2019 Valid until: 6/5/2024 Suajaya Mahir Crop Sdn Bhd Date of Certification: 25/2/2018 Valid until: 24/2/2023
The Registered Firm Mark ((DQS and MSPO ☒ Yes ☐ No logo) & Accreditation Body Marks are being used appropriately. Remarks:
Risk Assessment justification Current Risk justified; ☐ High ☐ Medium ☒ Low Lead auditor justification ☐ High ☐ Medium ☒ Low Remarks: Management commitment and responsibility for sustainability were observed maintained. No significant finding and No repeating on previous finding. Notes: Input of current risk can be obtained from previous audit report or Stage 1 audit report (in case of Stage 2 audit)
5.5. Next Step 3.5.1 Activity of the customer Corrective actions: ☒ Corrective actions not necessary ☐ Corrective actions will be implemented and reviewed for effectiveness as agreed by NA
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Opportunities for Improvement: Identified improvement potential will be evaluated internally and incorporated into the continual improvement process if deemed beneficial. Nonconformities, identified during an audit, shall be closed with evidence of effectiveness within defined time lines. Otherwise, certificates may be put on hold or be withdrawn.
3.5.2 Activity of DQS
Type of the next assessment: MS 2530-3:2013 ☒ ☐ Advancement / Surveillance Re-certification
Deadline of the next assessment: By 4 January 2021
Next assessment data: Planned date for next assessment: January 2021 (non-binding estimate of person (week or month, if appropriate) days) For 7 person-day(s) By 3 auditor(s)
Main emphasis will be on the As per MSPO audit checklist following subjects:
Customer requests: ☐ Information on ☐ Quotation for ☐ Telephone call from Customer Service Representative
Additional remarks:
6. Overview of Non-Conformity 6.1. Action Plan 1 No significant Finding of Non-conformity observed during audit. 7. Overview of OFI and concern 7.1. Opportunity for Improvement 7.1.1. No Significant of Opportunity For Improvement(OFI) 7.2. Concern Area for Next Year Audit Continuously maintain training on safety and health.
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8. Attachment and Appendix 8.1. Attached Documents (Mandatory For DQS Auditor To Use Only):):
☒ Updated Basic Data
☒ Auditor Independence
☒ Participant List(s) – opening and closing
☒ MSPO Template Certificate (initial / recertification / when deemed necessary)
(soft copy and signed)
☐ Action plan (if applicable)
☒ Stakeholder Consultation Report
☒ Audit plan
☐ latest List of smallholders by client
☒ Mutual auditor evaluation
☐ Others/ Further standard specific documents [if applicable]
8.2. Appendix 1: Group Certification Member, MPOB License, Main business/processes at location N Ref. Name of MPOB Address GPS Certifie Planted FFB Audit Year o unit License Coordinates d Area Area (ha) Production . No. No (ha) (MT) Y Y Y Y Y 2019 1 2 3 4 5
R A A A A A A A A A 1 2 3 4 20 21 22 23 24
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1 50451111 Delta- 504283902 Lot 24 & 35 112.164071, 7064.11 6956.09 125,175.51 ☒ ☐ ☐ ☐ ☐ Pelita 000 Mukah Land 2.667249 Sebakong District, 96400 Sdn Bhd Mukah 2 50451117 Suajaya Lot 8, Block 3 112.691944, 6703.00 6005.79 67,805.00 ☒ ☐ ☐ ☐ ☐ Mahir Arip & Lot 12 2.844203 Crop Sdn 503838602 Balingian Bhd 000 96350 Balingian, Sarawak 3 50451112 Desacorp 516203002 Lot 2&3, Block 112.324722, 5240.15 4459.15 89,788.05 ☒ ☐ ☐ ☐ ☐ Sdn Bhd 000 169, Jln 2.79864 Matadeng/Sela ngu, Mukah Land District, 96400 Mukah, Sarawak 4 50451113 Durafarm 504009702 KM 11, Off 111.478611, 5021.98 4894.67 54,563.22 ☐ ☐ ☐ ☐ ☐ Sdn Bhd 000 Jalan Tanjung 1.39744 Asam, 95700 Betong, Sarawak 5 50451572 Immense 528020002 Batu 36, Jalan 112.336388, 4589.90 4589.90 26,886.55 ☐ ☐ ☐ ☐ ☐ Fleet Sdn 000 Oya, Tamin 2.35447 Bhd Camp, 96000 Sibu, Sarawak.
8.3. Appendix 2: Audit Cycle Plan
/
MS2530-3:2013
on on
1st
4th 3rd
Organized Plantation- Group Certification 2nd
audit
audit Stage 2 Stage
1 Stage
Recertificati Recertificati
Surveillance Surveillance
Surveillance Surveillance
Ref. No. / AZ: 50452006 Date:
9 Jan Jan 9
Jan
- 2020 2021
6
Lead
auditor:
Organization: Delta-Pelita Sebakong Sdn Bhd
JO
(initials)
4.1 Management Commitment and
Responsibility Malaysian Sustainable Palm Oil (MSPO) √ 4.1.1 P Policy Internal Audit 4.1.2 P √
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/
MS2530-3:2013
on on
1st
4th 3rd
Organized Plantation- Group Certification 2nd
audit
audit Stage 2 Stage
1 Stage
Recertificati Recertificati
Surveillance Surveillance
Surveillance Surveillance Management Review 4.1.3 P √ Continual Improvement 4.1.4 P √ 4.2 Transparency Transparency of information and documents P √ 4.2.1 relevant to MSPO requirement Transparent method of communication and P √ 4.2.2 consultation Traceability 4.2.3 P √ 4.3 Compliance to Legal Requirement P Regulatory requirements 4.3.1 P √ Land use rights 4.3.2 P √ Customary rights 4.3.3 P √ 4.4 Social responsibility, health, safety and employment condition Social impact assessment (SIA) 4.4.1 P √ Complaints and grievances 4.4.2 P √ Commitment to contribute to local sustainable P √ 4.4.3 development Employees safety and health 4.4.4 P √ Employment conditions 4.4.5 P √ Training and competency 4.4.6 P √ 4.5 Environment, natural resources, biodiversity and ecosystem services Environmental management plan 4.5.1 P √ Efficiency of energy use and use of P √ 4.5.2 renewable energy Waste management and disposal 4.5.3 P √ Reduction of pollution and emission 4.5.4 P √ Natural water resources 4.5.5 P √ Status of rare, threatened or endangered P √ 4.5.6 species and high biodiversity value area. Zero burning practices 4.5.7 P √ 4.6 Best Practices Site management 4.6.1 P √ Economic and financial viability 4.6.2 P √ Transparent and fair price dealing 4.6.3 P √ Contractor 4.6.4 P √ 4.7 Development of new plantings High biodiversity Value 4.7.1 P Peat land 4.7.2 P Social and Environment Impact Assessment P 4.7.3 (SEIA) Soil and topographic information 4.7.4 P
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/
MS2530-3:2013
on on
1st
4th 3rd
Organized Plantation- Group Certification 2nd
audit
audit Stage 2 Stage
1 Stage
Recertificati Recertificati
Surveillance Surveillance
Surveillance Surveillance Planting on steep terrain, marginal and fragile P 4.7.5 soils Customary land 4.7.6 P
Use of DQS certificates, marks and P √ symbols Use of MSPO logo, marks and symbols P √ (extend this table as needed to fit in all relevant processes)
Legend: P = required, to be planned; O= optional, to be audited when changes occurred or planned or previous NC; ✓ or X = audited N = nonconformity identified The lead auditor expands this planning individually. Report prepared on Mohd Hidhir Bin Hamdan Date: 20 January 2020 Lead Auditor for MS 2530-3:2013
For Technical review:
18/3/2020 Date Certification Decision Making on behalf of DQS (Name and Signature)
For Peer review: Remark: Not applicable in case of surveillance or special audit
12 February 2020 REMI BIN RASIDI Date Document reviewing on behalf of DQS (Peer Reviewer 1)
11 February 2020 SYAHRIZAN BIN SYAHLAN Date Document reviewing on behalf of DQS (Peer Reviewer 2)
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Disclaimer: The contents of this report and all information received in association with the audit of the subject company will be maintained in the strictest confidence by the members of the audit team and by DQS, in accordance with prior agreements.
DQS maintains ownership of this report. The content of this report and all information received in relation to the audit and certification of the audited organization will be treated confidential and not disclosed to third parties. For exceptions e.g. disclosure to accreditation body refer to DQS Certification and Assessment Regulations.
This report is considered as final by the audit team, if you do not get any adverse information from DQS within 14 days after the last audit day.
The recommendation of the audit team is subject to review and approval by DQS technical certification experts, who take binding certification decision. An appeal process is defined in DQS Certification and Assessment Regulations. Should DQS obtain any information indicating nonconformity of the certified management system, DQS will notify the certified organization timely and initiate investigation and evaluation of such information.
Distribution MS 2530-3:2013 DQS Delta-Pelita Sebakong Sdn Bhd - Delta-Pelita Sebakong Sdn. Bhd./Desacorp Sdn. Bhd./Suajaya Mahir Crop Sdn.Bhd.
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