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SGS RSPO Doc SGS RSPO Doc. Number: GP 7003A (Associated Document) Doc. Version date: 01 January 2013 Page: 1 of 61 OIL PALM PLANTATION MANAGEMENT VERIFICATION REPORT Report Nr: MY02410-Boustead Plantations Client: Boustead Rimba Nilai Sdn Bhd (346457-W) RSPO 1-0012-04-000-00 membership #: www.boustead.com.my Web Page: Address: 28th Floor, Menara Boustead 69, Jalan Raja Chulan, 50200 Kuala Lumpur Malaysia Telephone: 603-2145-2121 Country: Malaysia Certification Sg Jernih Business Unit Unit Evaluated: Total Plantation 7,029 hectares Area Company En Mohammad Tarmizi Taufek Contact Person: Head office: Mill: 11h Floor, Menara Boustead, Kilang Kelapa Sawit Sungai Jernih Address: 69 Jalan Raja Chulan, Wakil Pos Paloh Inai 50200 Kuala Lumpur, 26650 Pekan, Pahang Malaysia Malaysia Tel: 03-2145-2121 Fax 03-2141-1690 Email: [email protected] Evaluation dates: Pre-assessment 26 –28 April 2010 Main 21 – 25 March 2011 Assessment 1st Surveillance 07-10 August 2012 GP 7003A Page 2 of 61 TABLE OF CONTENTS LIST OF TABLES .................................................................................................................................................... 3 LIST OF MAPS ........................................................................................................................................................ 3 LIST OF FIGURES ..................................................................................... ERROR! BOOKMARK NOT DEFINED. LIST OF PHOTOS ...................................................................................... ERROR! BOOKMARK NOT DEFINED. LIST OF ABBREVIATIONS .................................................................................................................................... 3 1. SCOPE OF VERIFICATION ......................................................................................................................... 5 2. COMPANY BACKGROUND ........................................................................................................................ 6 2.1 Ownership & History............................................................................................................................................ 6 2.2 Boustead Group Palm Oil Mill and Plantation Subjected to Certification ............................................................ 7 2.2.1 Sg. Jernih Palm Oil Mill ................................................................................................................................... 7 2.2.2 Oil Palm Estates .............................................................................................................................................. 8 3. OTHER BUSINESS UNITS OWNED BY BOUSTEAD GROUP AND PLAN FOR CERTIFICATION UNDER RSPO P&C .............................................................................................................................................. 11 4. PREPARATION FOR THE EVALUATION ................................................................................................. 12 4.1 Schedule ........................................................................................................................................................... 12 4.2 Team ................................................................................................................................................................. 12 5. THE EVALUATION ..................................................................................................................................... 12 5.1 Stakeholders Notification & Consultation .......................................................................................................... 12 5.2 Field Assessment .............................................................................................................................................. 12 5.2.1 Opening meeting ........................................................................................................................................... 12 5.2.2 Document review .......................................................................................................................................... 12 5.2.3 Field assessments ........................................................................................................................................ 13 5.2.4 Summing up and closing meeting ................................................................................................................. 13 6. EVALUATION RESULTS ........................................................................................................................... 14 6.1 Findings related to the general MYNI 2008 ....................................................................................................... 14 PRINCIPLE 1: Commitment to transparency............................................................. Error! Bookmark not defined. PRINCIPLE 2: Compliance with applicable laws and regulation ............................... Error! Bookmark not defined. PRINCIPLE 3: Commitment to long term economic and financial viability ................ Error! Bookmark not defined. PRINCIPLE 4: Use of appropriate best practices by growers and millers: ................ Error! Bookmark not defined. PRINCIPLE 5: Environmental responsibility and conservation of natural resources and biodiversityError! Bookmark not defined. PRINCIPLE 6: Responsible consideration of employees and of individuals and communities affected by growers and mills Error! Bookmark not defined. PRINCIPLE 7: Responsible development of new plantings ...................................... Error! Bookmark not defined. PRINCIPLE 8: Commitment to continuous improvement in key areas of activity ...... Error! Bookmark not defined. 7. CHAIN OF CUSTODY ..................................................................... ERROR! BOOKMARK NOT DEFINED. 8. ISSUANCE OF NON-COMPLIANCE ......................................................................................................... 54 9. ASSESSMENT DECISION ......................................................................................................................... 54 ------------------------------------------------------------------------------------------------------------------------------------------------------------------ SGS (Malaysia) Sdn. Bhd Unit 10-1 10th Floor Bangunan Malaysian Re, No 17 Lorong Dungun Damansara Heights (Co. No. 10871-T) 50490 Kuala Lumpur Malaysia. t +6 (03) 2095 9200 f +6(03) 2093 8202 www.sgs.com Member of SGS Group (Société Générale de Surveillance) GP 7003A Page 3 of 61 10. ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY AND FORMAL SIGN-OFF OF ASSESSMENT FINDINGS .................................................................................................................................... 54 11. RECORD OF STAKEHOLDER COMMENTS AND INTERVIEWS . ERROR! BOOKMARK NOT DEFINED. 12. RECORD OF CORRECTIVE ACTION REQUESTS (CARS) AND OBSERVATIONS ....................ERROR! BOOKMARK NOT DEFINED. LIST OF TABLES Table 1: FFB Input, CPO and PK output from Sg Jernih (Jan 2011-Nov 2012) ...................................................... 5 Table 2: List of estates and FFB production (Jan 2012 – Nov 2012) ...................................................................... 5 Table 3: Land Statement and crop age profile of Sg. Jernih, LTT-T and Bebar Estate .......................................... 8 Table 4: Boustead Group’s Timeline for RSPO certification of oil palm plantations .............................................. 11 Table 5: Audit Team Resume ................................................................................................................................ 12 Table 6: List of Stakeholders contacted................................................................... Error! Bookmark not defined. Table 7: Audit Field Visits ...................................................................................................................................... 13 Table 8: Level of Non-Compliance based on RSPO requirement ......................................................................... 14 Table 9: Land Tenureship ........................................................................................ Error! Bookmark not defined. LIST OF MAPS Map 1: Sg. Jernih Estate.......................................................................................................................................... 9 Map 2: Ladang Tabung Tentera ............................................................................................................................ 10 Map 3: Bebar Estate .............................................................................................................................................. 10 LIST OF ABBREVIATIONS CAR Corrective Action Request CPO Crude Palm Oil EFB Empty Fruit Bunch EIA Environment Impact Assessment EMS Environmental Management System ERT Endangered, Rare and Threatened species FFB Fresh Fruit Bunches Ha Hectare HCV High Conservation Value IPM Integrated Pest Management ILO International Labour Organisation ISO International Organisation for Standardisation IUCN International Union for Conservation of Nature and Natural Resources K Potassium kW Kilowatt LI Local Indicator LTT-T Ladang Tabung Tentera Terengganu Oil Palm Estate M Meter Mg Magnesium Mm Millimetre Mt Metric ton ------------------------------------------------------------------------------------------------------------------------------------------------------------------
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