On Shin Yang Kuala Baram Forest Plantation Management Unit for Forest Management Certification

PUBLIC SUMMARY SURVEILLANCE 1 (FIRST CYCLE) ON SHIN YANG KUALA BARAM FOREST PLANTATION MANAGEMENT UNIT FOR FOREST MANAGEMENT CERTIFICATION

Certificate Number: FPMC 0001 Date of First Certification: 18 July 2014 Audit Date : 20-21 October 2014

Prepared by:

Food, Agriculture and Forestry Section SIRIM QAS International Sdn. Bhd. Block 4, SIRIM Complex 1, Persiaran Dato’ Menteri Section 2, P.O. Box 7035 40000 Shah Alam, Selangor MALAYSIA Tel : 60-3-5544 6400/5544 6448 Fax : 60-3 5544 6763 Website : www.sirim-qas.com.my

12 August 2015

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1 EXECUTIVE SUMMARY ...... 3 1.1 INTRODUCTION ...... 3 1.2 Name of FPMU...... 3 1.3 Contact Person and Address ...... 4 1.4 Scope of Certification ...... 4 1.5 Audited Standard ...... 4 1.6 General Background on the Shin Yang Plywood Kuala Baram FPMU...... 4 1.7 Date First Certified ...... 5 1.8 Location of the Certified FPMU ...... 5 1.9 Forest Plantation Management System ...... 5 1.10 Environmental and Socioeconomic Context ...... 6

2 AUDIT PROCESS ...... 7 2.1 Audit Dates ...... 7 2.2 Audit Team ...... 7 2.3 Stakeholder Consultations ...... 7 2.4 Audit Process ...... 8

3 SUMMARY OF AUDIT FINDINGS ...... 8

Attachment 1 Map of Shin Yang Plywood Kuala Baram FPMU ...... 18 Attachment 2 Comments by Stakeholders and Responses by Audit Team ...... 19 Attachment 3 NCRs and OFIs Raised During this Audit and Corrective Actions Taken (2014) ...... 20 Attachment 4 Verification on Corrective Actions Taken on NCRs and OFIs Raised During Previous Audit (2013) ...... 22

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1 EXECUTIVE SUMMARY

SIRIM QAS International Sdn. Bhd. (SIRIM QAS International) is the oldest and leading certification, inspection and testing body in Malaysia. SIRIM QAS International provides a comprehensive range of certification, inspection and testing services which are carried out in accordance with internationally recognised standards. Attestation of this fact is the accreditation of the various certification and testing services by leading national and international accreditation and recognition bodies such as the Department of Standards Malaysia (STANDARDS MALAYSIA), the United Kingdom Accreditation Services (UKAS), the International Automotive Task Force (IATF), and the Secretariat of the United Nations Framework Convention for Climate Change (UNFCC). SIRIM QAS International is a partner of IQNet, a network currently comprising of 36 leading certification bodies in Europe, North and South America, East Asia and Australia.

This audit was conducted on the Forest Plantation Management Unit (FPMU) at Shin Yang Kuala Baram FPMU of Shin Yang Plywood Sdn. Bhd. (hereafter abbreviated as Shin Yang), from 20-21 October 2014 to assess the overall forest plantation management system compliance against the Malaysian Criteria and Indicators for Forest Management Certification (Forest Plantations) [MC&I(Forest Plantations)] using the verifiers stipulated for Sarawak.

Two-member team comprising Dr. S. K. Yap (Lead Auditor) and Khairul Najwan Ahmad Jahari (Auditor).

Based on the findings of this audit, it was found that Shin Yang Plywood Kuala Baram FPMU continues to comply with the requirements of the MC&I (Forest Plantations). This audit had resulted in the issuance of 4 Minor NCRs and 2 OFIs. The audit team had also verified the corrective actions taken on 8 Minor NCRs and 12 OFIs which were raised during the previous audit and it was found to be implemented effectively, therefore the NCRs have been closed.

1.1 INTRODUCTION

1.2 Name of FPMU

Shin Yang Kuala Baram FPMU

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1.3 Contact Person and Address

Mr. Ling Ee Khai (Manager) Shin Yang Plywood Sdn Bhd Lot 463, Block 1 Kuala Baram Industrial Estate 98000 Miri, Sarawak MALAYSIA Tel: +60(85) 604 599 Fax: +60(85) 604 555 E-mail: [email protected]

1.4 Scope of Certification

Management of Forest Plantation Located in the Northern and Southern Blocks within the Kuala Baram Land District, Miri Division (1,007.1 ha)

1.5 Audited Standard

Malaysian Criteria and Indicators for Forest Plantation Management Certification [MC&I(Forest Plantation)], dated 2008.

1.6 General Background on the Shin Yang Kuala Baram FPMU

The Shin Yang Kuala Baram FPMU has an area of 1,007.1 ha occupying 7 blocks on the north and south of the Baram river. Each block varies in size from 10 ha to 488 ha. The planted area is only 807.0 ha after excluding areas for protection of biodiversity, riparian belts, natural residual forests and sand mining activities. Detail hectarage and license permitted are as follows:

Northern Block Area (ha) Exp date 1 Lot 2122, Block 0, Kuala Baram Land District, Miri Division 54.00 20-02-2102 2 Lot 2138, Block 0, Kuala Baram Land District, Miri Division 314.00 01-12-2103 3 Lot 2143, Block 0, Kuala Baram Land District, Miri Division 21.20 01-12-2103 Sub Total 389.20

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Southern Block Area (ha) Exp date 1 Lot 2124, Block 0, Kuala Baram Land District, Miri Division 10.00 20-02-2102 2 Lot 2126, Block 0, Kuala Baram Land District, Miri Division 488.00 20-02-2102 3 Lot 2127, Block 0, Kuala Baram Land District, Miri Division 51.50 20-02-2102 4 Lot 3229, Block 6, Kuala Baram Land District, Miri Division 68.40 20-02-2102 Sub Total 617.90

A map of the FPMU showing the significant features of the forest is attached in Attachment 1. The area was originally covered by Mixed Swamp Forest (MSF) which is the dominant forest type along the Baram River estuary. The area was extensively logged over several sessions in the past resulting in an intensively degraded area. Following frequent fires the area was reduced to grassland with few residual trees. The area was degazetted from forest reserve and leased to various companies for industrial development.

Type of Forest Plantation Area (ha) Planted area 807.0 ha Residual Natural Forests 39.0 ha Riparian buffer belt 8.7 ha Sand mining sites 9.6 ha Other purpose 142.8 ha Total 1,007.1 ha

The main species established were Acacia magnum, Paraserianthus falcataria, Khaya and Eucalyptus. The first block Lot 2124 with an area of 10 ha was planted in January 2010 while the last block part of Lot 2126 was established in June 2013.

1.7 Date First Certified

18 July 2014

1.8 Location of the Certified FPMU

The FPMU is located within latitude 4º 32’N to 4º 34’N and longitude 114º 2’E to 114º 5’E

1.9 Forest Plantation Management System The FPMU have the following objectives:-

Page 5 of 27 a. Optimum utilization of forest resources b. Efficient operation and regulation of harvest on a sustained yield basis c. Restoration of forest landscape including regeneration of the forest and productive use of idle land for sustainable community development

To achieve these objectives the FPMU had established mainly fast growing exotic species, i.e.: Acacia mangium, Falcataria moluccana, Eucalyptus spp., Khaya ivorensis and Gmelina arborea on the degraded areas in an attempt to restore their ecological functions. A number of indigenous species had also been planted on trial basis to assess their abilities in these poor conditions. These were Alstonia angustiloba, Artocarpus communis, Artocaupus heterophyllus, Casuarina equisetifolia, Canarium osontophyllum, Dyera costulata, Durio sp., Neolamarchia cadamba, Parartocarpus sp. and Shorea leprosula.

The FPMU had just completed the planting phase and silvicultural treatment consisting only of weeding along planting lines during the first year of establishment. The FPMU was targeting to harvesting after 6 years subjected to the demand from the mill and also the performance of the planted trees. The target of the FPMU will be to harvest and replant immediately for each block. It is still in the process of determining the optimum sustainable harvesting volume and this will be reviewed in the next surveillance. As the plantation area was small, planting was completed within 3 years period. Harvesting regimes would be developed later with analysis of data of PSP and consultation with other forestry agencies. All the materials produced will be targeted for the use of its own plywood mill in the area.

1.10 Environmental and Socioeconomic Context

An EIA report for the “Environmental Impact Assessment For the Shin Yang Kuala Baram Tree Plantation at Kuala Baram, Miri Division, Sarawak” was produced in July 2012 as required under the Natural Resources and Environment (Prescribed Activities) Order 1994. The potential impacts and strategies to mitigate the impacts were written in this document. The EIA was approved on 3 October 2012 by the Natural Resources and Environment Board (NREB) Reference No. (20) NREB/6-3/2G/18 with conditions to be implemented by the FPMU. It had specified quarterly environmental monitoring every year and reports to be submitted to NREB. Monitoring reports of the 2nd Quarter 2014 and 3rd Quarter 2014 were verified.

The report stated that owing to the severe degradation of the forest plantation area with repeated logging activities and fires, it would be unlikely that the original floral and fauna species are still present. It documented a few species of commercial trees within the residual forested sites. Totally protected small mammals, i.e.: Slow loris (Nycticelius concarg) and Giant squirrel (Recifus affinis) were recorded previously. The need to protect residual forested sites to reduce potential impacts on

Page 6 of 27 protected species of animals and the floral composition within the FMU were described in the EIA report.

The Forest Plantation Management Plan for had incorporated measures to mitigate environmental impacts in Chapter 7. Measures to mitigate environmental impacts caused by harvesting activities identified in the EIA study had been incorporated in the FPMP.

The relevant laws on the customary rights of indigenous peoples’ lands as stated in the verifiers were available. However indigenous people residing in the only long house in the area (the eleven-door Rumah Panjang Mekal) outside the perimeter of the FPMU did not own or make claims to any lands and territories within the Forest Plantation Management Unit (FPMU).

2 AUDIT PROCESS

2.1 Audit Dates

20-21 October 2014 (4 man-days)

2.2 Audit Team

Dr. S. K. Yap (Audit Team Leader) Khairul Najwan Ahmad Jahari (Auditor)

2.3 Stakeholder Consultations

A one-month stakeholder consultation was conducted beginning on 18 September 2014 to 18 October 2014 to solicit feedback from stakeholders on the compliance of the Shin Yang Kuala Baram FPMU to the requirements of the MC&I(Forest Plantations). The comments by the stakeholders and responses from the audit team are shown in Attachment 2.

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2.4 Audit Process

The audit was conducted primarily to evaluate the level of continued compliance of the FPMU’s current documentation and field practices in forest plantation management with the MC&I(Forest Plantations), using the verifiers stipulated for Sarawak.

For each Indicator, the auditors had conducted a documentation review, consultation with the relevant personnel of the FPMU or stakeholders or field audit or a combination of these methods. Depending on the compliance with the verifiers for a particular indicator, the auditors then decided on the degree of the overall compliance in the indicator and decided whether or not to issue a major or minor NCR or an OFI.

Consultations were held with the contractors and workers operating within the FPMU. Meeting was also conducted with the management representatives based at the FPMU.

3 SUMMARY OF AUDIT FINDINGS

Details of the assessment findings (evidences) has been fully recorded in the audit report. The summary of it, with corrective action verification details for previous and current NCR are as follows:

PRINCIPLE STRENGTHS WEAKNESSES Principle 1 The forest plantation managers has Nil improved their knowledge on the relevant federal and state laws, administrative requirements and regulatory framework, thus previous OFI 1/2013 has been closed.

More prominent sign boards including the ban on unauthorized activities e.g. hunting has been erected at more sites, not only at the main entrances but also in strategic areas of the FPMU hence previous OFI 2/2013 has been closed.

The policy statement committing the FMU to adhere to the P&C has been amended accordingly in the public summary. In addition, the policy

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statement has been displayed at prominent sites within the FPMU and distributed to all stakeholders, thus previous OFI 3/2013 has been closed Principle 2 Lease of State Land for Lot 3229 and Nil Provisional Leases for Lot 2127, Lot 2126, Lot 2124, Lot 2143, Lot 2136 and Lot 2122 were presented during the assessment.

Duration of the first lease started from 2003 to 2102 while the other lots were for 99 years beginning from 2003. Forest managers had expressed their willingness to support all legally mechanisms for resolving land claims.

There were no legal or customary tenure or use rights of local communities within the titled land. The forest managers had expressed their willingness to collaborate with holders of duly recognized legal or customary tenure or use rights within legal frameworks if these were raised.

As there were no disputes over tenure claims and use rights within the titled land no mechanisms were developed to resolve these disputes. Principle 3 The relevant laws on the customary rights of indigenous peoples’ lands as stated in the verifiers were available. However indigenous people residing in the only long house in the area (the eleven-door Rumah Panjang Mekal) outside the perimeter of the FMU did not own or make claims to any lands and territories within the Forest Plantation Management Unit (FPMU).

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There were no conflicts with indigenous people. However the FPMU had developed procedures to resolve conflicts in the event that they arise. There were SOP on conflict resolution CR/13 Conflict Resolution/Management dated April 2013 was presented. The SOP Processes Flow to Address Grievances/Conflicts was also made available. Principle 4 Recent meeting held with the staff and Minor NCR SYP1/2014 has been raised general workers found that they had as the procedures established to been briefed on the rights provided by address grievances raised by forest the ILO Convention 87. And based on plantation workers are not adequate. interview during current audit it is The SOP on resolving grievances of verified that general workers, were workers did not present an independent aware of the right to join worker union channel for grievances to be resolved freely, and have a clear understanding fairly. A suggestion box and directing on these rights, hence previous OFI complains to immediate superiors could 4/2013 has been closed. not provide a fair hearing. FPMU plan to amend Service Operation Procedure – A separate SIA on its own has been Chart of Handling Workers’ Grievances carried out to further enhance the Revision 2 dated 5 November 2014 after evaluation on the social impacts of the a meeting and discussion with top Shin Yang Kuala Baram FPMU management. Corrective action plan forestry operations, thus previous OFI accepted and verification of the 5/2013 has been closed. effectiveness will be conducted during next audit.

OFI 2/104 has been raised as the records and documentation of the training could be further improved with more details of trainers and trainees on forest plantation management. This subject to be verified during next audit Principle 5 The financial and human resources Nil provided to maintain, restore or enhance the productive capacity and

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ecological functions of the forest has been clearly reflected in the annual plan and the implementation found to be adequate, hence previous OFI 6/2013 has been closed Principle 6 There was no plan for converting the Nil residual forest area to plantations. Conversion of forest plantation area into non forest land use had not occurred within the FPMU except for 9.6 ha that were mined for sand.

During previous audit, Shin Yang Kuala Baram FPMU had initiated effort with the cooperation of the government agencies and the Sarawak Forestry Corporation (SFC) on the possibility to jointly conduct an assessment on HCVF sites within the FPMU. However, there were no documentations to show that meetings and consultations had been held with conservation organizations, research agencies and regulatory authorities. Thus Minor NCR 1/2013 has been raised during previous audit.

The FPMU had presented documents on the follow-up actions. The list of stakeholders has been revised to indicate a broader group so as to improve on conservation management in the FPMU. The corrective action plan has been reviewed and accepted by the audit team. Verification of the corrective action has been conducted during current audit and confirm the effectiveness of corrective action taken and therefore this NCR has been closed.

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Residual forest sites in Lot 2126 and Lot 2138 within the FPMU had not been demarcated in the plantation and not mapped for protection which due to Minor NCR 2/2013 raised previously. The tree tagging in the protected site has been set as first priority to identify any rare species. Demarcating on maps using GPS has provided the boundary marking of the area to be protected. The action plan was accepted and the actions taken and therefore previous Minor NCR 2/2013 has been closed

Posters showing protected endangered, rare and threatened (ERT) species were made available to forest workers and posted in prominent places in the nursery. As these forest workers would be working for a long time in the FPMU they would be more likely to encounter these ERT species thus the training in knowing them has been conducted to the workers and the Shin Yang Kuala Baram FPMU. Workers’ knowledge on these ERT has been improved after a training has been conducted by the relevant agencies, hence previous OFI 7/2013 has been closed

Existing residual forest ecosystem had been demarcated on ground and satellite imageries for protection. An area of 39 ha had been set aside for conservation. Another 6.8 ha had been demarcated as riparian buffer belt. Protection and management of

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these sites has been further improved with distinct signboards being placed at appropriate locations around the remaining residual forested areas. Monitoring and supervision has been enforced to prevent any damages during harvesting adequately, thus previous OFI 8/2013 has been closed.

The use of chemicals especially paraquat has been controlled and minimise as per policy. Briefing was conducted to provide sufficient awareness to workers and interview with workers confirm their understanding, hence previous OFI 9/2013 has been closed. Principle 7 The forest managers found to be Minor NCR SYP2/2014 has been raised improve in their knowledge on the as the objective on long term social and latest scientific information on forest economic well-being of workers and plantation management with local communities presented in the networking with other more revised Forest Plantation Management established plantations as per Plan October 2014 had not been interview during current audit, thus presented in the publicly available previous OFI 10/2013 has been summary in the web site of the FPMU in closed. www.shinyang.com.my. FPMU has plan to summarized and presented forest plantation management plan in the company public summary at the web site www.shinyang.com.my by November 2014. Corrective action plan accepted and verification of the effectiveness will be conducted during next audit. Principle 8 The public summary presented in the Nil web page of the Shin Yang Kuala Baram FPMU www.shinyang.com had not included the costs and efficiency of the forest management thus a minor NCR 3/2013 was raised during

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previous audit. The action plan presented by the Shin Yang Kuala Baram FPMU during current audit had indicated that a budget would be included in the public summary. The action was accepted and has been verified during this audit and therefore resulted Minor NCR 3/2013 has been closed. Principle 9 During previous audit, Minor NCR Minor NCR SYP3/2014 has been raised 4/2013 has been raised as a HCVF as the specific measures to protect, study had yet to be conducted which demarcate and manage HCVF sites resulted in missing HCVF monitoring. identified in the HCVF Report had not The Shin Yang Kuala Baram FPMU been made available in the public had written to SFC to confirm the date summary in the web page for implementing the HCVF study. www.shinyang.com. FPMU has plan to This study had been agreed in summarized and presented results of principle and would be implemented findings of HCVF in the company public when the dates were confirmed. summary in the web site Verification during current audit www.shinyang.com.my by November confirm the corrective action taken are 2014. However, inspection of the web effective and acceptable therefore this site had not indicated measures to Minor NCR has been closed. enhance and protect conservation area. This are subject to be verified during A list of relevant stakeholders to be next audit. consulted regarding HCVF was not provided to the audit team and hence OFI 1/2014 has been raised as the Minor NCR 5/2013 has been raised demarcation of the HCVF area on the during previous audit. The stakeholder ground as per HCV report need to be list found has been updated before improved through signage usage etc. current audit and consequently this Improvement are subject to be verified Minor NCR has been closed. during next audit. Principle 10 During previous audit, the objectives of Minor NCR SYP4/2014 has been raised the forest management as presented as analysis of the effectiveness of in the FPMP (Sept 2013 to Sep 2022) control fires incidences has not included were not clear on the conservation and the control measures. FPMU plan to restoration of natural forest and Minor prepared on 5 November 2014 A new NCR 6/2013 has been raised. A chart of Pelan Kecemasan Jika Berlaku separate document would be prepared Kebakaran di Hutan Revision 1 after as an attachment to the FPMP. A discussion with management. Access

Page 14 of 27 ground survey and tree marking which road network has been developed. are crucial in protecting these residual Ground drainage had been made trees has been conducted. The action broader and deeper. Action plan plans were accepted and current audit accepted. The effectiveness of the new verified and confirm the effectiveness measures will have to be assessed of corrective action taken and thus this during the next surveillance. Minor NCR has been closed.

The forest plantation establishment had not included protection, restoration and conservation of natural forests as per audited previously, hence Minor NCR 7/2013 was raised. The research on protection and restoration of the residual natural forest has been conducted by external parties and provide sufficient information and the implementation on the forest plantation area found to be sufficient during current audit and therefore this Minor NCR has been closed.

Another Minor NCR raised previously are Minor NCR 8/2013 when the analysis of the comparative advantages/benefits of choosing exotic species over native species in the establishment of the plantation had not been conducted. Current audit verified and confirm that merit and demerit charts has been developed and used for assessing the advantages/ benefits of planting the different exotic species. The comparison on the advantage/benefit of planting the different species found to be adequate and therefore this Minor NCR has been closed.

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Shin Yang Kuala Baram FPMU has developed connectivity between residual vegetation of original natural forest area and the riparian buffer belts to strengthen and improving wildlife corridors condition sufficiently, thus previous OFI 11/2013 has been closed.

The Environmental Protection Plan had described the need to protect the forest plantation from pests and diseases as well as fire. Specific guidelines and SOPs being written and include activities on preventing, monitoring and assessing invasive plant introductions, hence previous OFI 12/2013 has been closed accordingly.

Based on the findings of this audit, it was found that Shin Yang Plywood Sdn. Bhd. had continued to manage the Shin Yang Kuala Baram FPMU in compliance with the requirements of the MC&I (Forest Plantations). This audit had resulted in the issuance of 4 Minor NCRs and 2 OFIs. The details on the NCRs and OFIs raised are shown in Attachment 3.

The audit team had also verified the corrective actions taken by Shin Yang Plywood Sdn. Bhd. to address the 8 Minor NCRs and 12 OFIs which were raised during the previous audit whereas the corrective action verified and found to be implemented effectively and therefore was closed. The details on the verification on the corrective actions taken and the status of the NCRs raised during the previous audit are shown in Attachment 4.

Shin Yang Plywood Sdn. Bhd. had taken appropriate corrective actions to address the major NCRs raised which had been reviewed and accepted by the audit team. Therefore, this major NCR had been closed out. Shin Yang Plywood Sdn. Bhd. had also submitted its proposed corrective actions to address the minor NCRs and OFIs. The proposed corrective action plan had been reviewed and accepted by the audit team. However, these corrective actions shall be verified by the audit team during the next audit.

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The audit team had therefore recommended that the Certificate for Forest Plantation Management awarded to the Shin Yang Plywood Kuala Baram FPMU be maintained.

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Attachment 1 Map of Shin Yang Kuala Baram FPMU

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Attachment 2 Comments by Stakeholders and Responses by Audit Team

No Name, Organisation, Detail of Issue Raised Comments by Audit Team date received, Leader Address and Contact Numbers 1 Factory & Machinery Please verify the commitment of the The safety and health measures Inspector, Department forest plantation unit in Occupational for workers had been assessed. of Occupational Safety Safety & Health and their state of PPE provided were inspected to & Health Malaysia compliance with Occupational Safety be in good condition. & Health Act 1994 and Factory & Machinery Act 1974 2 Pegawai Kawalan The Project proponent need to put in New measures in trenching and Alam Sekitar, NREB place adequate fire prevention creating access roads to fire Miri measures as the estate in Kuala prone sites had been inspected. Baram has been severely affected New measures had been during a recent occurrence of peat developed with organizational fire from the neighboring land changes. The map in Environmental Monitoring Report should be updated 3 Manager, Management We do not have any comment due to Noted the comments & Compliance, SFC the fact that Shin Yang Kuala Baram FPMU is practicing good forest plantation management

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Attachment 3 NCRs and OFIs Raised During this Audit and Corrective Actions Taken (2014)

Indicator Specification Detail Non-conformances Corrective Action Taken Verification Major/Minor/OFI by Assessor Indicator Minor Procedures established to Amendment of Service Action plan 4.3.3 address grievances raised Operation Procedure – accepted and by forest plantation workers Chart of Handling Workers’ verification will NCR #: are not adequate. Grievances Revision 2 be done in SYP1/2014 dated 5 November 2014 next The SOP on resolving after a meeting and surveillance. grievances of workers did discussion with top not present an independent management. channel for grievances to be resolved fairly. A suggestion box and directing complains to immediate superiors could not provide a fair hearing. Indicator Minor The publicly available The forest plantation The public 7.4.1 summary had not included management plan would summary of all the objectives written in be summarized and the FPMP was NCR #: the revised Forest Plantation presented in the company available in the SYP2/2014 Management Plan public summary in the web web page of site www.shinyang.com.my the company. The objective on long term In November 2014. Action plan social and economic well- accepted. being of workers and local communities presented in the revised Forest Plantation Management Plan October 2014 had not been presented in the publicly available summary in the web site of the FPMU in www.shinyang.com.my. Indicator Minor Specific measures to ensure The results of findings of Inspection of 9.3.2 the maintenance of HCVF are summarized and the web site conservation attributes presented in the company had not NCR #: documented in the HCVF public summary in the web indicated SYP3/2014 report had not been site www.shinyang.com.my measures to included in the publicly In November 2014. enhance and available summary protect

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conservation Specific measures to area. protect, demarcate and manage HCVF sites identified in the HCVF Report had not been made available in the public summary in the web page www.shinyang.com Indicator Minor Guidelines to control fires A new chart of Pelan Action plan 10.7.1 incidences had been written Kecemasan Jika Berlaku accepted. The but analysis of the Kebakaran di Hutan effectiveness NCR #: effectiveness of these Revision 1 was prepared of the new SYP4/2014 control measures had not on 5 November 2014 after measures will been conducted. discussion with have to be management. Access road assessed network has been during the next developed. Ground surveillance. drainage had been made broader and deeper. Indicator OFI The HCVF area was To be verified 9.3.1 mapped in the HCVF during next Assessment report. The surveillance. OFI #: demarcation on the ground 1 need to be improved by signage.

Indicator OFI The training on forest To be verified 4.1.1 plantation workers has been during next conducted. The records and surveillance. OFI #: documentation of the 2 training could be improved with more details of trainers and trainees.

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Attachment 4 Verification on Corrective Actions Taken on NCRs and OFIs Raised During Previous Audit (2013)

Indicator Specification Detail Non-conformances Corrective Action Verification by Major/Minor/OFI Taken Assessor Indicator Minor The SY Kuala Baram FPMU Communication with The FMU had 6.2.3 had initiated effort with the Sarawak Forestry presented cooperation of the Corporation documents on the NCR #: government agencies and Updating of follow up action on 1/2013 the Sarawak Forestry stakeholders list the certification Corporation (SFC) on the Communication with audit. The list of possibility to jointly conduct other agencies stakeholders would an assessment on HCVF be revised to sites within the FPMU. indicate a broader However, there were no group so as to documentations to show that improve on meetings and consultations conservation had been held with management in the conservation organizations, FMU. research agencies and regulatory authorities. Indicator Minor Residual forest sites in Lot Conducted on ground The tree tagging of 6.3.1 2126 and Lot 2138 within marking of trees trees in the the FPMU had not been Identifying protected site would NCR #: demarcated in the plantation protected/endangered be the first action 2/2013 and not mapped for species within the required for protection. FPMU identifying any rare Mapping with GPS species. Demarcating on maps using GPS will provide the boundary marking of the area to be protected Indicator Minor The public summary To include the budget The action plan 8.5.1 presented in the web page and actual expenses presented by the of the SY Kuala Baram in the public summary FMU had indicated NCR #: FPMU www.shinyang.com 2014 budget to the budget would be 3/2013 had not included the costs include training, R&D included in the and efficiency of the forest and conservation public summary that management would be revised.

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This would complete the list as specified in the Indicator. Indicator Minor Although the EIA report had 9.1.1 stated that it was very Communicate and The FMU had unlikely that there would be confirm tentative date written to SFC to NCR #: HCV sites, the SY Kuala with SFC to conduct confirm the date for 4/2013 Baram FPMU had contacted HCVF assessment implementing the the Sarawak Forestry HCVF study. This Corporation to initiate a To assess the results study was agreed in study within the plantation and take appropriate principle and would area. A quotation was action be implemented provided by SFC on 5 with the dates August 2013 and the confirmed. approval to proceed was given by the management. However, a HCVF study had yet to be conducted. As a HCVF study had yet to be initiated, therefore HCVF monitoring had not been conducted. Indicator Minor A list of relevant 9.2.1 stakeholders to be consulted Updating of The stakeholder list regarding HCVF was not stakeholders list was updated as NCR #: provided to the audit team. Communication with indicated in 5/2013 other agencies NCR1/2013 Updating of stakeholders list Communication with other agencies Indicator Minor The objectives of the forest To include the The revision of the management as presented objectives for natural FPMP would not be 10.1.1 in the FPMP (Sept 2013 to forest conservation due as it was written Sep 2022) were not clear on and restoration in the just before the audit. NCR #: the conservation and FPMP 2013 to 2022 A separate 6/2013 restoration of natural forest. document could be prepared as an attachment. Indicator Minor The forest plantation Carried out ground The ground surveys establishment had not marking of the and tree marking

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10.2.1 included protection, residual forest areas will be crucial in restoration and conservation in the FPMU protecting these NCR #: of natural forests. To set residual residual trees. 7/2013 forests with GPS The development of To contact research a design for agencies and review protection and available research restoration of the reports on natural residual natural forests. forest would be Collect information on through research indigenous and exotic information. This species would only be available from research agencies as the FMU did not have such capability. Indicator OFI An analysis of the To make comparison The merit and comparative of these species demerit charts that 10.4.2 advantages/benefits of using merit and would be choosing exotic species demerit charts developpedd could NCR #: over native species in the To conduct analysis provide a platform 8/2013 establishment of the of these results for assessing the plantation had not been different exotic conducted. species planted Indicator OFI The forest plantation See details as per Verified corrective 1.1.2 managers will have to Section 3 of this action taken improve their knowledge on report (Summary of accordingly as per the relevant federal and Audit Findings) addressed in state laws, administrative Section 3 of this requirements and regulatory report (Summary of framework. Audit Findings) Indicator OFI In view of the many oil palm See details as per Verified corrective 1.5.2 plantations and industrial Section 3 of this action taken activities along the perimeter report (Summary of accordingly as per of the FPMU, more Audit Findings) addressed in prominent sign boards Section 3 of this including the ban on report (Summary of unauthorized activities e.g. Audit Findings) hunting need to be erected

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at more sites, not only at the main entrances but also in strategic areas of the FPMU Indicator OFI The policy statement See details as per Verified corrective 1.6.2 committing the FMU to Section 3 of this action taken adhere to the P&C is report (Summary of accordingly as per required to be posted in the Audit Findings) addressed in public summary. In addition, Section 3 of this the policy statement would report (Summary of have to be displayed at Audit Findings) prominent sites within the FPMU and distributed to all stakeholders. Indicator OFI From a meeting held with See details as per Verified corrective the staff and general Section 3 of this action taken 4.3.1/4.3.2 workers it was found that report (Summary of accordingly as per they had been briefed on the Audit Findings) addressed in rights provided by the ILO Section 3 of this Convention 87. However, it report (Summary of was observed that there Audit Findings) were a number of general workers, although they were aware of the right to unionise, they did not have a clear understanding on these rights. Indicator OFI Evaluation of social impact See details as per Verified corrective 4.4 had been incorporated into Section 3 of this action taken the EIA. However, if a report (Summary of accordingly as per separate SIA on its own is Audit Findings) addressed in being carried out, this would Section 3 of this further enhance the report (Summary of evaluation on the social Audit Findings) impacts of the SY Kuala Baram FPMU forestry operations. Indicator OFI The financial and human See details as per Verified corrective 5.1.2 resources provided to Section 3 of this action taken maintain, restore or enhance report (Summary of accordingly as per the productive capacity and Audit Findings) addressed in ecological functions of the Section 3 of this

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forest have to be clearly report (Summary of reflected in the annual plan. Audit Findings) Indicator OFI Posters showing protected See details as per Verified corrective 6.2.5 endangered, rare and Section 3 of this action taken threatened (ERT) species report (Summary of accordingly as per were made available to Audit Findings) addressed in forest workers and posted in Section 3 of this prominent places in the report (Summary of nursery. As these forest Audit Findings) workers would be working for a long time in the FPMU they would be more likely to encounter these ERT species thus the training in knowing them would be advantageous to the workers and the SY Kuala Baram FPMU. However, the workers’ knowledge on these ERT could be improved if training was conducted by the relevant agencies. Indicator OFI Existing residual forest See details as per Verified corrective 6.4.2 ecosystem had been Section 3 of this action taken demarcated on ground and report (Summary of accordingly as per satellite imageries for Audit Findings) addressed in protection. An area of 39 ha Section 3 of this had been set aside for report (Summary of conservation. Another 6.8 Audit Findings) ha had been demarcated as riparian buffer belt. Protection and management of these sites could be improved with distinct signboards being placed at appropriate locations around the remaining residual forested areas. Monitoring and supervision would have to be enforced to prevent

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any damages during harvesting. Indicator OFI The use of chemicals See details as per Verified corrective 6.6.1 especially paraquat could be Section 3 of this action taken further controlled report (Summary of accordingly as per Audit Findings) addressed in Section 3 of this report (Summary of Audit Findings) Indicator OFI The forest managers could See details as per Verified corrective 7.2.2 further improve their Section 3 of this action taken knowledge on the latest report (Summary of accordingly as per scientific information on Audit Findings) addressed in forest plantation Section 3 of this management with report (Summary of networking with other more Audit Findings) established plantations Indicator OFI Owing to the severe See details as per Verified corrective 10.2.2 degradation of the original Section 3 of this action taken natural forest area only a report (Summary of accordingly as per residual vegetation still Audit Findings) addressed in remained within and around Section 3 of this the FPMU. There was a report (Summary of need to develop connectivity Audit Findings) between these sites and the riparian buffer belts as wildlife corridors. Indicator OFI The Environmental See details as per Verified corrective 10.7.1 Protection Plan had Section 3 of this action taken described the need to report (Summary of accordingly as per protect the forest plantation Audit Findings) addressed in from pests and diseases as Section 3 of this well as fire. However, there report (Summary of were no specific guidelines Audit Findings) and SOPs being written. In addition procedures on preventing, monitoring and assessing invasive plant introductions could be included.

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