MSPO CERTIFICATION SUMMARY REPORT Sustainable Palm Oil Cluster (SPOC) J30 Project No: 50451306 MPOB Cawangan Rengit, Pusat Pertanian Bersepadu, Sungai Dulang Rengit, 83100 Batu Pahat, Johor Date: 14/01/2019 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 CONTENT Table of Contents 1. Executive Summary ____________________________________________________ 3 2. Introduction ___________________________________________________________ 5 2.1 Objective _________________________________________________________________ 5 2.2 Scope ___________________________________________________________________ 5 2.3 Certification Team __________________________________________________________ 5 3. Methodology __________________________________________________________ 6 3.1 Stage 1 __________________________________________________________________ 6 3.2 Surveillance Audit __________________________________________________________ 6 4. Organization Information _________________________________________________ 7 4.1 Company Information _______________________________________________________ 7 4.2 Production Information: Estate ________________________________________________ 7 5 Certification Assessment _________________________________________________ 8 5.1 Stage 1 Audit ______________________________________________________________ 8 5.2 Surveillance Audit __________________________________________________________ 8 5.3 Stakeholder’s Consultation ___________________________________________________ 9 6 Non-conformity Raised _________________________________________________ 10 7 Conclusion / Recommendation ____________________________________________ 11 7.1 Opportunity For Improvement ________________________________________________ 11 7.2 Concern Area for Next Year Audit _____________________________________________ 11 7.3 Certification Recommendation _______________________________________________ 11 8 References ____________________________________________________________ 13 8.1 Contact Information ___________________________________________________________ 13 Management Representative at site _______________________________________________ 13 Audit team ___________________________________________________________________ 13 Contact person at DQS _________________________________________________________ 13 8.2 Audit Information _____________________________________________________________ 13 8.3 Audit Data __________________________________________________________________ 14 8.4 Next Step __________________________________________________________________ 18 Page 1 of 25 AUDIT REPORT SPOC SG KELUANG J30 AA1 All aspects of the audit are considered confidential TABLE OF CONTENT Activity of the customer _________________________________________________________ 18 Activity of DQS _______________________________________________________________ 18 8.6 Attached Documents __________________________________________________________ 19 8.7 Appendix 1: Group Certification Member __________________________________________ 20 8.8 Appendix 2: Audit Report Manager _______________________________________________ 24 Page 2 of 25 AUDIT REPORT SPOC SG KELUANG J30 AA1 All aspects of the audit are considered confidential 1. Executive Summary Date(s) of Audit: 7 Jan 2019 to 9 Jan 2019 Company Name: Sustainable Palm Oil Cluster (SPOC) J30 Certification No: 50451306 Operational Unit: SPOC J30 Contact No: 07-424 3100 / 0191980479 Certified Site Address: MPOB Cawangan Rengit, Pusat Pertanian Bersepadu, Sungai Dulang Rengit, 83100 Batu Pahat, Johor MSPO Standard: MS 2530-2:2013 GENERAL PRINCIPLES FOR INDEPENDENT SMALLHOLDERS Lead Auditor: Mohd Shauki Bin Mohd Ghazali Auditors(s): 1. Johari Mohd Nor (Lead Auditor in Training) 2. Mohd Hidhir Hamdan (Observer) Sustainable Palm Oil Cluster (SPOC) J30 is the registered entity managing SPOC J30 based in MPOB Cawangan Rengit, Pusat Pertanian Bersepadu, Sungai Dulang Rengit, 83100 Batu Pahat, Johor. SPOC J30 had responsible to assist and advice the group of smallholders to manage their land planted with palm oil effectively. SPOC J30 has selected a qualified number of smallholders to participate in these scheme They require MS2530-2 certification to align with the headquarter office commitment to attain the recognized Malaysia sustainability standard for palm oil, Malaysian Sustainable Palm Oil (MSPO). Management systems that implemented, generally met intend of MS2350-2 requirement, but need further improvement as per our action plans addressed in section 6 and 7 of this document Audit Results Non-conformities raised: Major: 0 Minor: 1 Opportunity for Improvement(s): 1 1 Indicator 4.6.1.1 Principle: P6 Best practices Minor Non-conformity ACTION PLAN 1 (AP 1) Clause : 4.6.1.1 Group managers & relevant government agencies should encourage all independent smallholders’ to implement best Page 3 of 25 AUDIT REPORT SPOC SG KELUANG J30 AA1 All aspects of the audit are considered confidential (Rev 01) practices such as the MPOB Codes of Practice, Malaysian Standards and the Kod Amalan Baik (GAP) Pekebun Kecil. Refer to Kriteria Penilaian GAP dimestikan/boleh ditambahbaik stated: Bil 8-keliling pokok sawit bebas daripada rumpai/anak kayu(3meter radius) During audit visit at Field Md Hafizan bin Md Asren, En. Mohd Hafizuddin Bin Md Asren, and Pn. Azizah Binti Abu it was found that pineapple planting encroached into palm circle.. Stakeholders’ Consultation ☐ Yes ☒ No raised any issues regards to the management. Remarks: - Conclusion Certification Recommendation: 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 MSPO Standard, MS 2530-2:2013 GENERAL PRINCIPLES FOR INDEPENDENT SMALLHOLDERS 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. Page 4 of 25 AUDIT REPORT SPOC SG KELUANG J30 AA1 All aspects of the audit are considered confidential (Rev 01) 2. Introduction This report was prepared by DQS Certification (M) Sdn. Bhd. in conjunction to the intent of Sustainable Palm Oil Cluster (SPOC) J30 and its group members to be certified by Malaysian Sustainable Palm Oil in accordance to the MS 2530-2:2013, Malaysian Sustainable Palm Oil (MSPO) Part 2: General principles for independent smallholders (MS2530-2:2013) 2.1 Objective The objectives of Surveillance Audit are as follows; i. Evaluate the implementation, including effectiveness of the management system ii. Information and evidence about conformity to all MSPO requirements iii. Performance monitoring, measuring, reporting iv. Performance as regards legal compliance and stakeholder’s expectation v. Operational control of the client's processes and respect to sustainability elements vi. Internal auditing, management review and continual improvement vii. Links between the normative requirements, policy, performance objectives and targets viii. Competence of personnel ix. Evaluate the implementation, including effectiveness of the management system x. Information and evidence about conformity to all MSPO requirements 2.2 Scope The report deploys the input captured from the DQS MSPO checklist from audit conducted on 7th January. 2019 to 9th January. 2019. Analysis has been justified prior recommendation of maintenance of certification can be made. It has been referred to MS 2530-2:2013, Malaysian Sustainable Palm Oil (MSPO) Part 2: General principles for independent smallholders or MS2350-2:2013 to evaluate the effectiveness of system implementation in fulfillment of sustainability aspects in their operations. For the purposes of this assignment, the focus will be on the compliance of clients towards MSPO principles and criteria (P&C), applicable statutory and regulatory requirement and established procedures/SOPs. The outcomes have been described from 939-D1-MSPO Guidance - Part 2 (smallholder) Checklist of audited sample of independent smallholders. Finally, it may convince to audit team to make justification of SPOC J30 management system is effective and fulfills the requirements according to certification scope defined in section 4.1 of this summary report. 2.3 Certification Team Auditor name Role Mohd Shauki Bin Mohd Ghazali Audit Team Leader Johari Bin Mohd Nor Co-Auditor Mohd Hidhir Bin Hamdan Observer (Auditor In-training) Note: Auditors listed are meeting with competency criteria according to clause 7 of Requirements For The Accreditation Of Certification Bodies Operating Oil Palm Management Certification Under the Malaysian Sustainable Palm Oil (MSPO) Certification Scheme Page 5 of 25 AUDIT REPORT SPOC SG KELUANG J30 AA1 All aspects of the audit are considered confidential (Rev 01) 3. Methodology 3.1 Stage 1 Stage 1 has been carried out to meet with the requirement of MSPO certification procedure. The result shows that the organization has demonstrated their readiness to go for certification 3.2 Surveillance Audit