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Fgv Holdings Berhad FGV HOLDINGS BERHAD RSPO Membership No: 1-0225-16-000-00 PLANTATION MANAGEMENT UNIT FGVPISB Kilang Sawit Selancar 2B Muadzam Shah, Pahang Darul Makmur, Malaysia INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W) Report No.: R9310/17-3 FGV Holdings Berhad Page 2 of 109 FGVPISB Kilang Sawit Selancar 2B: Surveillance Assessment ASA-02 SURVEILLANCE ASSESSMENT ASA-02 PUBLIC SUMMARY REPORT FGV HOLDINGS BERHAD RSPO Membership No: 1-0225-16-000-00 PLANTATION MANAGEMENT UNIT FGVPISB Kilang Sawit Selancar 2B Muadzam Shah, Pahang Darul Makmur, Malaysia Certificate No: RSPO 931088 Issued date: 31 Oct 2017 Expiry date: 30 Oct 2022 Assessment Type Assessment Dates Initial Certification (Main Assessment) 14–18 Aug 2017 Annual Surveillance Assessment (ASA-01) 09-12 Jul 2018 Annual Surveillance Assessment (ASA-02) 15-18 Jul 2019 Annual Surveillance Assessment (ASA-03) Annual Surveillance Assessment (ASA-04) Re-Certification Intertek Certification International Sdn Bhd D-28-3, Level 28, Menara Suezcap 1, No. 2, Jalan Kerinchi, Gerbang Kerinchi Lestari, 59200 Kuala Lumpur, Malaysia. Tel: +00 (603) 7931 0032 Fax: +00 (603) 7931 0419 Email: [email protected] Website: www.intertek.com INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W) Report No.: R9310/17-3 FGV Holdings Berhad Page 3 of 109 FGVPISB Kilang Sawit Selancar 2B: Surveillance Assessment ASA-02 TABLE OF CONTENTS Section Content Page No 1.0 SCOPE OF ASSESSMENT 4 1.1 Introduction 4 1.2 Location (address, GPS and map) mill, estates and hectarage 4 1.3 Description of supply base (fruit sources) 5 1.4 Year of plantings and cycle 5 1.5 Summary of Land Use – Conservation and HCV Areas 6 1.6 Other certifications held and Use of RSPO Trademarks 6 1.7 Organizational information/contact person 6 1.8 Tonnages Verified for Certification 7-8 1.9 Time Bound Plan and Multiple Management Units 9-14 1.10 Abbreviations Used 15 2.0 ASSESSMENT PROCESS 16 2.1 Assessment Methodology, Plan & Site Visits 16 2.2 Date of next scheduled visit 16 2.3 Qualifications of the Lead Assessor and Assessment Team 16 2.4 Certification Body 16 2.5 Process of Stakeholder consultation 17-18 3.0 ASSESSMENT FINDINGS 19 3.1 Summary of findings 19-71 3.2 Status of Identified Noncompliance and Corrective Actions, Observations and 72-92 Identified Positive Elements 3.3 Summary of Feedback Received from Stakeholders and Findings 92-95 4.0 ASSESSMENT CONCLUSION AND RECOMMENDATION 96 4.1 Acknowledgement of Internal Responsibility and Confirmation of Assessment 96 Findings 4.2 Intertek RSPO Certification Details for the PMU 97-98 APPENDICES Appendix A Qualifications of the Lead Assessor and Assessment Team 99 Appendix B Assessment Plan 100-102 Appendix C Maps of location – Mill and Estates 103-106 Appendix D Time Bound Plan on Multiple Manageent Units 107 Appendix E Summary of RSPO CP Case Tracking and Evlauation on Updates 108 INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W) Report No.: R9310/17-3 FGV Holdings Berhad Page 4 of 109 FGVPISB Kilang Sawit Selancar 2B: Surveillance Assessment ASA-02 1.0 SCOPE OF ASSESSMENT 1.1 Introduction This Surveillance Assessment ASA-02 was conducted on the Plantation Management Unit (PMU) at FGVPISB Kilang Sawit Selancar 2B of FGV Holdings Berhad (hereafter abbreviated as FGVHB), from 15-18 Jul 2019, to assess the organization’s operations of the mill and its supply bases for compliance against the RSPO Principles and Criteria (Apr 2013), Malaysian National Interpretation (MYNI 2014) and the RSPO Supply Chain Certification Standard (Jun 2017) for the Palm Oil Mill. Special Note: The Management unit is aware of the transition needed to implement the revised RSPO Principles and Criteria (14 Nov 2018) and is in process to upgrade its implementation before 13 Nov 2019 (MYNI 2019 – pending). The plantation management unit (PMU) or management unit is equivalent to a certification unit as defined in the RSPO Certification Systems Document. Each PMU consists of one mill [under FGV Palm Industries Sdn Bhd (FGVPISB)] and its supply base which is made up of estates owned and/or managed by FGV Plantations (M) Sdn Bhd (FGVPM). FGVPISB and FGVPM are wholly owned subsidiaries of FGVHB. 1.2 Location (address, GPS and map) of palm oil mill and estates The PMU consists of one (1) palm oil mill, namely Selancar 2B Mill and three (3) estates as indicated in Table 1 below, which includes the addresses and GPS locations of the mill and estates. The location maps are provided in Appendix C. There are no Felda Smallholders (settlers) in this PMU. The estates are all managed by FGVPM and the palm oil mill is operated by FGVPISB. Table 1: Address of Palm Oil Mill, Estates and GPS Location GPS Reference Name Address Latitude Longitude Selancar 2B POM Kilang Sawit Selancar 2B, Wakil Pos Selancar 2, 2°38'16.00"N 103° 0'1.00"E (Capacity:54 MT/hr) 26700 Muadzam Shah Pahang, Malaysia FGVPM Ladang Felda Selancar 06, Wakil Pos FGVPM Selancar 6 Perwira Jaya, 85070, Segamat, Johor Darul Takzim, 2°41'38.00"N 102°56'56.00"E estate Malaysia FGVPM Ladang Felda Selancar 08, Wakil Pos FGVPM Selancar 8 Perwira Jaya, 85070 Segamat, Johor Darul Takzim, 2°36'50.00"N 103° 0'18.00"E estate Malaysia FGVPM Ladang Felda Selancar 09, Wakil Pos FGVPM Selancar 9 Perwira Jaya, 85070 Segamat, Johor Darul Takzim, 2°37'10.00"N 103° 1'16.00"E estate Malaysia Note: The above PMU grouping is verified to be an established Oil Palm plantation whereby the estates were planted with Oil Palms. There has been no with new planting or expansion in the entire certified (titled) plantation land areas. Table 1-1: Registered Name of Palm Oil Mill and MPOB License Registered Company Designated Mill Name MPOB License No. MPOB License Validity Mill Name FGV Palm Industries Sdn Bhd Selancar 2B Palm Oil Mill 500204-704000 31/04/2018 – 31/03/2020 (359584-V) INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W) Report No.: R9310/17-3 FGV Holdings Berhad Page 5 of 109 FGVPISB Kilang Sawit Selancar 2B: Surveillance Assessment ASA-02 Table 1-2: Registered Name of Estates and MPOB License Registered Company Estate Division Name MPOB License No. MPOB License Validity Estate name FGV Plantations (M) Sdn Bhd FGVPM Selancar 6 estate 616559002000 01/07/2019 – 30/06/2020 (974143-H) FGV Plantations (M) Sdn Bhd FGVPM Selancar 8 estate 558963002000 01/03/2019 – 29/02/2020 (974143-H) FGV Plantations (M) Sdn Bhd FGVPM Selancar 9 estate 559044002000 01/03/2019 – 29/02/2020 (974143-H) 1.3 Description of supply base (fruit sources) The supply base i.e. FFB sources to the POM are from the abovementioned 3 estates of this PMU and FFB from Outside Crop Producers (OCP). The FFB from the PMU estates are certified FFB and FFB from OCP are considered as non-certified FFB. Details of the planted hectarage for the FFB supply for the PMU are as shown in Table 2 below. Table 2: Estate Area Summary Area Summary (ha) – Year 2018 Area Summary (ha) – Year 2019 Estate Certified (Titled) Certified (Titled) Planted Area Planted Area Area Area FGVPM Selancar 6 estate 3,549.64 3,230.27 3,549.64 3,274.42 FGVPM Selancar 8 estate 1,680.89 1,452.07 1,680.89 1,452.07 FGVPM Selancar 9 estate 2,948.61 2,694.50 2,948.61 2,694.50 Total: 8,179.14 7,376.84 8,179.14 7,420.99 Notes: 1. The estates sampled for this Assessment have been selected based on their potential risks on social, environmental and biodiversity issues such as their proximity to forest reserves, hill sides, riparian zones and any high conservation value areas. 2. The planted area in Selancar 6 estate has increased due to more accurate survey measurement done after replanting in year 2017. 1.4 Summary of plantings and cycle The 3 estates have been developed beginning from 1979 and are now in the 2nd cycle of planting. The age profile is as shown in Table 3. Table 3: Age Profile of Planted Oil Palm – Year 2019 Estate Name Year of Planting Cycle of Mature OP (ha) Immature OP (ha) Total (ha) Planting – Above 3 years – 3 years & below Planted FGVPM Selancar 2000, 2008, 2009, 2010, 2nd 2,913.03 361.39 3,274.42 6 estate 2011, 2013, 2014, 2017 FGVPM Selancar 2000, 2005, 2006, 2nd 1,452.07 0 1,452.07 8 estate 2010, 2013 FGVPM Selancar 2000, 2010, 2011, 2nd 2,694.50 0 2,694.50 9 estate 2012, 2013, 2014 Total 7,059.60 361.39 7,420.99 Notes: • There has been no New Planting in any of the estates at the certified areas. • There is replanting at Selancar 6 estate in year 2017 and more accurate survey measurement carried out thereafter on the replanted area, mature and immature areas. INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W) Report No.: R9310/17-3 FGV Holdings Berhad Page 6 of 109 FGVPISB Kilang Sawit Selancar 2B: Surveillance Assessment ASA-02 1.5 Summary of Land Use - Conservation and HCV Areas The summary of Land Use as identified in the PMU during this assessment is as shown in Table 4 below: Table 4: Statement of Land Use (including Conservation and HCV Areas) # Statement of Land Use (Ha) Year 2019 CB Verification Hectarage – Ha 1 Oil Palm - Planted Area (ha) 7,420.99 Verified on site - OP Mature (Production) 7,059.60 Verified on site - OP Immature (Non-Production) 361.39 Verified on site - OP Planted on Peat 0 Verified on site - Other crop such as Rubber, etc.
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