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SGS QUALIPALM Doc SGS QUALIPALM Doc. Number: (Associated Document) Doc. Version date: 5 May 2007 Page: 1 of 41 OILPALM PLANTATION MANAGEMENT VERIFICATION REPORT Report Nr: MY02410-Boustead Plantations Client: Boustead Rimba Nilai Sdn Bhd (346457-W) RSPO membership 1-0012-04-000-00 #: Web Page: www.Boustead.com.my Address: 28th Floor, Menara Boustead 69, Jalan Raja Chulan, 50200 Kuala Lumpur Malaysia Telephone: 603-2145-2121 Country: Malaysia Certification Unit Sg Jernih Business Unit Evaluated: Total Plantation 7,029 hectares Area Company Contact Mr P Kodiappan Person: En Mohammad Tarmizi Taufek 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 protected] Email: [email protected] Evaluation dates: Pre-assessment 26 –28 April 2010 Main Assessment 21 – 25 March 2011 Main assessment against RSPO Requirement Boustead Rimba Nilai Sendirian Berhad Page 2 of 41 TABLE OF CONTENTS LIST OF TABLES....................................................................................................................................................3 LIST OF MAPS........................................................................................................................................................3 LIST OF FIGURES..................................................................................................................................................3 LIST OF PHOTOS...................................................................................................................................................3 LIST OF ABBREVIATIONS ....................................................................................................................................4 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 ..............................................................................................................................................12 4. PREPARATION FOR THE EVALUATION.................................................................................................13 4.1 Schedule ........................................................................................................................................................... 13 4.2 Team ................................................................................................................................................................. 13 5. THE EVALUATION.....................................................................................................................................14 5.1 Stakeholders Notification & Consultation.......................................................................................................... 14 5.2 Field Assessment.............................................................................................................................................. 15 5.2.1 Opening meeting........................................................................................................................................... 15 5.2.2 Document review .......................................................................................................................................... 15 5.2.3 Field assessments ........................................................................................................................................ 15 5.2.4 Summing up and closing meeting................................................................................................................. 16 6. EVALUATION RESULTS...........................................................................................................................16 6.1 Findings related to the general MYNI 2008....................................................................................................... 17 PRINCIPLE 1: Commitment to transparency .............................................................................................................. 17 PRINCIPLE 2: Compliance with applicable laws and regulation .................................................................................... 18 PRINCIPLE 3: Commitment to long term economic and financial viability .................................................................... 20 PRINCIPLE 4: Use of appropriate best practices by growers and millers: ...................................................................... 21 PRINCIPLE 5: Environmental responsibility and conservation of natural resources and biodiversity ............................... 28 PRINCIPLE 6: Responsible consideration of employees and of individuals and communities affected by growers and mills 30 PRINCIPLE 7: Responsible development of new plantings ........................................................................................... 34 PRINCIPLE 8: Commitment to continuous improvement in key areas of activity ........................................................... 35 7. CHAIN OF CUSTODY ................................................................................................................................36 8. ISSUANCE OF NON-COMPLIANCE .........................................................................................................37 ------------------------------------------------------------------------------------------------------------------------------------------------------------------ SGS (Malaysia) Sdn. Bhd Unit 10-1 10 th 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) Main assessment against RSPO Requirement Boustead Rimba Nilai Sendirian Berhad Page 3 of 41 9. ASSESSMENT DECISION.........................................................................................................................37 10. ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY AND FORMAL SIGN-OFF OF ASSESSMENT FINDINGS....................................................................................................................................37 11. RECORD OF STAKEHOLDER COMMENTS AND INTERVIEWS............................................................38 12. RECORD OF CORRECTIVE ACTION REQUESTS (CARS) AND OBSERVATIONS ..............................38 LIST OF TABLES Table 1: FFB Input, CPO and PK output from Sg Jernih (Jan-Dec 2010) ...............................................................5 Table 2: List of estates and FFB production (Jan – Dec 2010) ...............................................................................5 Table 3: Land Statement and crop age profile of Sg. Jernih LTT-T and Beber Estate ...........................................9 Table 4: Boustead Group’s Timeline for RSPO certification of oil palm plantations..............................................13 Table 5: Audit Team Resume................................................................................................................................13 Table 6: List of Stakeholders contacted.................................................................................................................14 Table 7: Audit Field Visits ......................................................................................................................................15 Table 8: Level of Non-Compliance based on RSPO requirement .........................................................................16 Table 9: Land Tenureship......................................................................................................................................19 LIST OF MAPS Map 1: Sg. Jernih Estate........................................................................................................................................10 Map 2: Ladang Tabung Tentera ............................................................................................................................11 Map 3: Bebar Estate ..............................................................................................................................................12 LIST OF FIGURES ERROR! NO TABLE OF FIGURES ENTRIES FOUND.LIST OF PHOTOS Photo 1: Sg. Jernih Palm Oil Mill .............................................................................................................................8 Photo 2: The old palm trunk were felled, chipped and buried................................................................................22
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