MSPO CERTIFICATION
EXECUTIVE / PUBLIC SUMMARY REPORT
SOP Pelita Batu Lintang Plantation Sdn Bhd
50452041
Ulu Undop NCR Land Development Area, Sri Aman Division, 95000 Sri Aman, Sarawak
3rd – 5th March 2020
Stage 2 Audit
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 Contents
I. Public Summary Report ...... 3 1. Detail of Certification Assessment ...... 3 2. Details of Estates ...... 3 2.1. Map ...... 4 3. Assessment Process ...... 4 4. Audit Plan ...... 5 5. Summary of Audit Results ...... 9 6. Audit findings ...... 9
II. Audit Report (Estate) ...... 10 1. Introduction ...... 10 1.1 Scope of Certification ...... 10 2. Audit Evaluation Process ...... 10 2.2. Stage 1 ...... 10 2.3. Stage 2 Audit ...... 10 2.4. Stakeholder’s Consultation ...... 40 3. Audit Information...... 41 3.1. Contact Information ...... 41 3.2. Audit Data ...... 41 3.3 List of the site audited each year please refer to Appendix 1: Group Certification Member, MPOB License, Main business/processes at location ...... 42 3.4. Audit Result ...... 42 3.5. Next Step ...... 44 4. Overview of Non-Conformity ...... 45 4.1. Action Plan 1 ...... 45 4.2. Action Plan 2 ...... 45 4.3. Action Plan 3 ...... 45 5. Overview of OFI and concern ...... 45 5.1. Opportunity for Improvement ...... 45 5.2. Concern Area for Next Year Audit ...... 46 6. Attachment and Appendix ...... 46 6.1. Attached Documents (Mandatory For DQS Auditor To Use Only):): ...... 46 6.2. Appendix 1: Group Certification Member, MPOB License, Main business/processes at location ...... 47 6.3. Appendix 2: Audit Cycle Plan ...... 48
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I. Public Summary Report
1. Detail of Certification Assessment Date(s) of Audit: 3rd – 5th March 2020 Type of Audit: Stage 2 Audit Scope of MSPO certification: Production of Sustainable Fresh Fruit bunches from 14,823 ha total oil palm planted area 2,334.30 ha total certified area MSPO Standard: Malaysian Sustainable Palm Oil (MSPO) in accordance to the MS 2530-3:2013 (Part 3): General principles for oil palm plantations and organized smallholders.
2. Details of Estates Management Contact Person: Lim Hung Hui
Contact No: 019 – 8264811 (HP) 013 – 8883629 (Office) Email Address: [email protected]
MPOB License No, Scope of activity, Expiry date: Scope of activity : Menjual dan Mengalih FFB Expiry date :01/01/2020 – 31/12/2020 License no :525452002000
(For Estate has more than 1 site, please refer to Appendix 1)
Year operation start: 2006 Soil Type: Mineral First year production harvest: 2006 Total Certified Area 14,823.00 Ha (Titled area. Area within unit which may include planted area, mill, housing roads, conservation etc (Ha): Total Planted Area 2,334.30 Ha (TOTAL PLANTED AREA WITH OIL PALM - MATURE OR IMMATURE) (Ha): Estate - Estimated tonnages of annual FFB 19.46mt/ha Production: Current valid certificate: ☐ Yes ☐ No Date of Certification: - Valid until: -
Not applicable, currently is Stage 2 audit Other sustainability certifications: ☐ Yes (if “yes”, please specify) ☐ No Date of Certification: - Valid until: -
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2.1. Map
SOP Batu Lintang Estate 1°02'17.2"N 111°38'29.4"E
3. Assessment Process Total manday: 2.5 mandays Lead Auditor: Mohd Hidhir b Hamdan Qualification: Tertiary Working Experience: Minimum 10 years Co-Auditor: - Qualification: N/A Working Experience: N/A Co-Auditor: [Co-Auditor 2] Qualification: Choose an item. Working Experience: N/A Co-Auditor: [Co-Auditor 3] Qualification: Choose an item. Working Experience: N/A Observer (Auditor-in-training): [Co-Auditor 4] Qualification: N/A Working Experience: N/A Proposed dates of next audit: March 2021 Annual Surveillance Audit 1
Information on certified entities to Legal requirements, be audited in five years cycle: Environmental, Safety & Health
Note: Auditors listed are meeting with competency criteria according to clause 3 (Table 1) of Competency Requirement for Certification Body of Operating Oil Palm Management Certification Under the Malaysian
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Sustainable Palm Oil (MSPO) Certification Scheme (ACB – OPMC 1, Issue 1, 01 August 2017) and clause 7 of ISO/IEC 17021 Requirements for The Accreditation of Certification Bodies. 4. Audit Plan Audit plan
Version : 18/02/2020 Ref. No. 50452041 Company name SOP Pelita Batu Lintang Plantation Sdn Bhd Site(s) Ulu Undop NCR Land Development Area, Sri Aman Division, 95000 Sri Aman, Sarawak
Standard(s) MS 2530-3:2013 Type of audit Initial Assessment (Stage 2) Audit team Lead Auditor: Mohd Hidhir Hamdan (HID) Audit scope Oil Palm Plantation Audit language English, Bahasa Melayu Audit date 3rd – 5th March 2020 Audit criteria Manual (name and number): TBA; Version date: TBA; Number Action Plan from the previous audit: NA
Audit objective(s)
Stage 2 Audit - Evaluate the implementation, including effectiveness, of the management system - Information and evidence about conformity to all requirements - Performance monitoring, measuring, reporting - Reviewing against key performance objectives and targets - Performance as regards legal compliance - Operational control of the client's processes - Internal auditing and management review - Management responsibility for policies - Links between the normative requirements, policy, performance objectives and targets - Competence of personnel - Customer specific requirements - Others:
Audit agenda Date / 18 February 2020
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Time Subject; process Reference Unit; Participants Auditor(s) department Date : 3rd March 2020 (Day 1) 08:00 Opening Meeting - - Top management / HID Management Representative 08:30 Review against relevant documents MSPO 2530: HID - MSPO Policy Principle 1 Estate Management - Internal Audit & Representative Management Review
10:00 - Site Visit MSPO 2530:3 Principle 1 - 7 Estate Management HID Representative 12:00 - Lunch Break
13:00 Review against relevant documents HID - Transparency: MSPO 2530:3 Estate Management Communication & Principle 2 & Representative Consultation Principle 3 - Traceability system - Regulatory requirements - Land used right - Customary rights 15:00 Review against relevant documents - Social impact MSPO 2530:3 assessment (SIA) Estate HID Principle 4 Management - Complaints and Representative grievances - Commitment to contribute to local sustainable development 17:00 - End of Day 1
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Time Subject; process Reference Unit; Participants Auditor(s) department Date : 4th March 2020 (Day 2) 08:00 Review against relevant documents HID - Employees safety and MSPO 2530:3 Management health Estate Principle 4 Representative - Employment
- Training and competency
12:00 - Lunch Break
13:00 Review against relevant documents MSPO 2530:3 HID - Environmental Estate Management Management Plan Principle 5 Representative (EMP) - Efficiency of energy use and use of renewable energy - Waste management and Disposal 15:00 Review against relevant documents
- Reduction of pollution MSPO 2530: Estate Management and emission HID Principle 5 Representative - Natural water resources - Status of rare, threatened, or endangered species and high biodiversity value area. - Zero burning practices 17:00 End of Day 2
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Time Subject; process Reference Unit; Participants Auditor(s) department Date : 5th March 2020 (Day 3) 08:00 Review against relevant documents - Site management MSPO 2530:3 HID - Economic and financial viability Principle 6 Estate Management plan Representative - Transparent and fair price dealing - Contractor
- Preparation for Closing Meeting 10:00 Estate Auditor HID
11:00 - Closing Meeting Estate Management HID Representative 12:00 End of Audit
Date Agenda sent to Client: 18/02/2020
☒ The audit schedule was maintained
☐ The audit schedule was altered as follows:
☒ The audit objectives have been met
☐ The following audit objectives could not be met:
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5. Summary of Audit Results Audit summary and recommendation for certification. 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 MS 2530-3:2013, 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
Please remember to notify DQS about any significant change to your management system at your earliest convenience. Together we will then coordinate appropriate measures to maintain your current certification. 6. Audit findings Type of Findings Total number Responses from entities Major Nil N/A
Minor 3 Official signed-off
OFI 4 Acknowledged Issues raised during Nil Notified stakeholder consultation Official Sign-off of the assessment findings:
Lead Auditor Signature:
Name: MOHD HIDHIR HAMDAN Date: 5 March 2020
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II. Audit Report (Estate)
1. Introduction The Assessments conducted under agreement with SOP Pelita Batu Lintang Plantation Sdn Bhd at their production units to certify that audited sites comply with the requirements of Malaysian Sustainable Palm Oil (MSPO) in accordance to the MS 2530-3:2013 (Part 3): General principles for oil palm plantations and organized smallholders.
1.1 Scope of Certification This Audit Report details the evaluations of audit process and actual onsite audit activities of Auditors to collect evidences basing on the requirement of seven principles in according to Malaysian Sustainable Palm Oil (MSPO) in accordance to the MS 2530-3:2013 (Part 3): General principles for oil palm plantations and organized smallholders. Audit result determines compliance of audited sites in the overview of Non-Conformity and Opportunity for Improvement. The outcomes have been described from 939-D2-MSPO Guidance - Part 3 (estate) checklist of each sampled estates. Recommendation of Certificate releases in consideration of relevant issues raised by stakeholder groups to gauge level of compliance against the requirements of Malaysian Sustainable Palm Oil (MSPO). 2. Audit Evaluation Process 2.2. 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
2.3. Stage 2 Audit This is an Stage 2 Audit being planned and executed according to MS2530-3 standard reference. SOP Pelita Batu Lintang Plantation Sdn Bhd is registered to function as an individual site operation where, the management system has been regulated within one unit operation
This is Stage 2 Audit after successful achievement of Stage 1 audit result conducted on 23th January 2020 and organization has demonstrated their readiness to go for certification. Therefore, the summary report will describe audit criteria the auditing process as documented in the audit schedule as well as the current management system documentation of the company The audit criteria are the certification standards as documented in the audit schedule as well as the current management system documentation of the company. Assessment has been executed at the site area with below GPS no (refer to Appendix 2)
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Site(s) has been sampled and assessed as per inspection plan (refer to Appendix 1)
Notes: Sampling process was not applied due to site was registered for individual certification Stage 2 audit was conducted on 3 – 5 March 2020 with total 2.5 man-days were allocated according to MSPO Certification Procedure. In summary, we have evaluated your management system as follows: Stage 2 Audit
Criterion / Indicator Evidence / Finding Result
4.1 Principle 1: Management commitment & responsibility
Criterion 4.1.1 – Malaysian Sustainable Palm Oil (MSPO) Policy
4.1.1.1 A policy for the implementation SOPB as a group has established “Oil ☒ Confirm of MSPO shall be established. Palms Sustainability Policy and Related ☐Minor NC Environmental Management Policies” ☐Major NC updated version on 13/03/2019. ☐OFI
4.1.1.2 The policy shall also SOPB is committed to adopt the MSPO ☒ Confirm emphasize commitment to as the primary sustainability standard ☐Minor NC continual improvement. together with following principles; 1) The general sustainability principles ☐Major NC 2) Environmental Management ☐OFI 3) marketplace and Supply Chain 4) Workplace and Human Rights 5) Local Community Development and Social Impact 6) Reporting
Criterion 4.1.2 – Internal audit
4.1.2.1 Internal audit shall be planned Internal Audit was conducted on 3rd Jan ☒ Confirm and conducted regularly to 2020 by Sustainability Team. Pre – Audit ☐Minor NC determine the strong and weak also has been conducted prior to Internal ☐Major NC points and potential area for Audit on 29th – 30th Oct 2019. ☐OFI further improvement. Results of findings; 1. Non Conformance – 1 2. Opportunity for Improvement – 17 3. Reminder – 173 Total – 191 findings.
-Non conformance has been answered by the management
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- Verification will be done by Sustainability Team on 23rd Mar 2020
4.1.2.2 The internal audit procedures Internal Audit procedures has been ☒ Confirm and audit results shall be established Doc No SOPB/SUSTAIN- ☐Minor NC documented and evaluated, M21. ☐Major NC followed by the identification of Latest updated on 05/07/2019. strengths and root causes of ☐OFI nonconformities, in order to implement the necessary corrective action.
4.1.2.3 Report shall be made available Report is available. ☒ Confirm to the management for their ☐Minor NC review. ☐Major NC ☐OFI
Criterion 4.1.3: Management Review
4.1.3.1 The management shall SOP Pelita Batu Lintang Sdn Bhd has ☒Confirm periodically review the conducted Management Review ☐Minor NC continuous suitability, Meeting on 21/01/2020, chaired by ☐Major NC adequacy and effectiveness Estate Manager. ☐OFI of the requirements for effective implementation of MSPO and decide on any changes, improvement and modification.
Criterion / Indicator Evidence / Finding Result
Criterion 4.1.4: Continual Improvement
4.1.4.1 The action plan for continual Continuous Improvement Plan has ☒ Confirm improvement shall be based been established for Year 2020. It was ☐Minor NC on consideration of the main apparently including; ☐Major NC social and environmental 1. Social ☐OFI impact and opportunities of 2. Human Resource the company. 3. Environmental
The progress of CIP is being reviewed each quarter.
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4.1.4.2 The company shall establish Continual Improvement Procedure has ☒ Confirm a system to improve practices been established Doc No ☐Minor NC in line with new information SOPB/SUSTAIN – M11. and techniques or new ☐Major NC industry standards and ☐OFI technology, where applicable, that are available and feasible for adoption.
4.1.4.3 An action plan to provide the Refer to the Continual Improvement ☒ Confirm necessary resources Procedure, the relevant ☐Minor NC including training, to department/operation unit has to implement the new conduct trial or test and demonstration ☐Major NC techniques or new industry from the source of supplier. If the new ☐OFI standard or technology techniques or technologies is feasible (where applicable) for adoption the relevant department to shall be established. conduct training, demonstration and application.
4.2 Principle 2: Transparency
Criterion 4.2.1 – Transparency of information and documents relevant to MSPO requirements
4.2.1.1 The management shall 1. Area Development Committee (ADC) ☒ Confirm communicate the information Meeting was conducted on ☐Minor NC requested by the relevant 11/02/2029 to discuss on the stakeholders in the operation development with the land ☐Major NC appropriate languages and owners. ADC comprises of land ☐OFI forms, except those limited by owners, Land Custody and commercial confidentiality or Development Authority (LCDA) and disclosure that could result in management representative. negative environmental or Outcome of the meeting will be social outcomes. forwarded to the Kementerian Pembangunan Luar Bandar dan Pembangunan Tanah. 2. DOSH Logbook – Audit Keselamatan dan Kesihatan Pekerjaan Sektor Pertanian dated 14/02/2019. 5 “Notis Perbaikan” had been issued by DOSH and being closed effectively by the management through notice cancellation on 25/11/2019.
Criterion / Indicator Evidence / Finding Result
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4.2.1.2 Management documents The documents are made available for ☒ Confirm shall be publicly available, both estates. ☐Minor NC except where this is ☐Major NC prevented by commercial ☐OFI confidentiality or where
disclosure of information would result in negative environmental or social outcomes.
Criterion 4.2.2 – Transparent method of communication and consultation
4.2.2.1 Procedures shall be Communication and Consultation ☒ Confirm established for consultation Procedures (External Stakeholders) ☐Minor NC and communication with the Doc No SOPB/SUSTAIN-M16 is ☐Major NC relevant stakeholders. available. ☐OFI 4.2.2.2 A management official should Estate Manager was appointed as ☒ Confirm be nominated to be Management Representative for ☐Minor NC responsible for issues related Sustainability Related Matters (External to Indicator 1 at each Stakeholders) ☐Major NC operating unit. ☐OFI Mr Jackson Entingang was appointed as The Social and Risk Management Team, handling social and internal grievance issues. 4.2.2.3 List of stakeholders, records List of stakeholders Year 2020 is ☒ Confirm of all consultation and available, comprises of Local Authority, ☐Minor NC communication and records List of Suppliers, List of Contractors or of action taken in response to Consultants, Surrounding Communities ☐Major NC input from stakeholders and Others. Record of consultation; ☐OFI should be properly maintained 1. Area Development Committee (ADC) Meeting was conducted on 11/02/2029 to discuss on the operation development with the land owners. ADC comprises of land owners, LCDA and management representative. Outcome of the meeting will be forwarded to the Kementerian Pembangunan Luar Bandar dan Pembangunan Tanah. 2. DOSH Logbook – Audit Keselamatan dan Kesihatan Pekerjaan Sektor Pertanian dated 14/02/2019. 5 “Notis Perbaikan” had been issued by DOSH and being closed effectively by the management through notice cancellation on 25/11/2019. 3. Private consultation with Enforcement NREB officer, substantiated that management has rendered good commitment in addressing each issue highlight by the NREB,
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Criterion 4.2.3 – Traceability
4.2.3.1 The management shall Product Identification and Traceability ☒ Confirm establish, implement and Doc No SOPB/SUSTAIN-M26 is ☐Minor NC maintain a standard operating available to identify and track any ☐Major NC procedure to comply with the changes of the FFB production ☐OFI requirements for traceability process. of the relevant product(s). 4.2.3.2 The management shall Management has conducted regular ☒ Confirm conduct regular inspections inspection on established Traceability ☐Minor NC on compliance with the system as stipulated in the procedure. established traceability ☐Major NC system. ☐OFI 4.2.3.3 The management should FS Michael Mengga and WC Suria Lah ☒ Confirm identify and assign suitable have been appointed as the Traceability ☐Minor NC employees to implement and Team. maintain the traceability ☐Major NC system. ☐OFI 4.2.3.4 Records of sales, delivery or Sample taken on the records ☒ Confirm transportation of FFB shall be ☐Minor NC maintained. 28/02/2020; ☐Major NC i. Muster Chit ☐OFI ii. Harvesting Summary iii. Harvesting Ticket iv. Daily Vehicle/Machinery Log/Driver/Crew LogSheet v. Weighbridge Advice Ticket Estate vi. FFB Despatch Note vii. Weighbridge Ticket (Mill) Records are maintained. 4.3 Principle 3: Compliance to legal requirements
Criterion 4.3.1 – Regulatory requirements
4.3.1.1 All operations are in 1) MPOB License : ☒ Confirm compliance with the Menjual dan Mengalih FFB ☐Minor NC applicable local, state, 01/01/2020 – 31/12/2020 national and ratified 14843.90 Hektar ☐Major NC international laws and 525452002000 ☐OFI regulations. 2) Perakuan Penentuan Timbang dan Sukat dated 12/07/2019
3)Permit Barang Kawalan Berjadual – 2 Diesel Tanks each 19,000L Capacity.Valid until 24th June 2020
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4) The Business, Professions and Trading License Ordinance Valid until 02/10/2020
4.3.1.2 The management shall list all Legal Register (Estate) is available and ☒ Confirm laws applicable to their found records of all applicable law ☐Minor NC operations in a legal applicable to the operation. requirement register. ☐Major NC ☐OFI 4.3.1.3 The legal requirements Legal Register is regularly updated by ☒ Confirm register shall be updated as HQ officer cascade down to the ☐Minor NC and when there are any new estates. amendments or any new ☐Major NC regulations coming into force. ☐OFI 4.3.1.4 The management should FS Jembu Rantai and ES Stanna ☒ Confirm assign a person responsible Janny have been appointed as the ☐Minor NC to monitor compliance and to Legal Compliance Team. track and update the changes ☐Major NC in regulatory requirements. ☐OFI Criterion 4.3.2 – Land Use Rights
4.3.2.1 The management shall The management has sufficient ☒ Confirm ensure that their oil palm documents to demonstrate their ☐Minor NC cultivation activities do not landholdings. diminish the land use rights of 1. “Joint Venture Agreement” was ☐Major NC other users. made on 16th September 2008 between ☐OFI Pelita Holdings Sdn Bhd and Sarawak Oil Palms Berhad. 2. Map of SOP Pelita Batu Lintang Sdn Bhd, Native Lot with the scale of 1:22000 is available. 3. Memorandum of Consent (MOC) is available; official document signed by the land owner agreeing the NCR land to be developed by the agent of Lembaga Pembangunan dan Lindungan Tanah (“PELITA/LCDA”)/Lembaga Kemajuan Tanah Sarawak (LKTS/SLDB) 4.3.2.2 The management shall An agreement “Joint Venture ☒ Confirm th provide documents showing Agreement” was made on 16 ☐Minor NC legal ownership or lease, September 2008 between Pelita history of land tenure and the Holdings Sdn Bhd and Sarawak Oil ☐Major NC actual use of the land. Palms Berhad. ☐OFI
The State Government and the natives (“the NCR Owners”) who are in occupation of and having the Native Customary Rights (NCR) over of all those parcels of land known as Ulu Undop NCR Land Development Area, Sri Aman District, Sri Aman Division Sarawak.
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Area containing an area of 14,500 hectares , more or less – the said land to be developed into an oil palm plantation together with such other ancillary facilities and services.
Estimated plantable area 8000 hectares of oil palm plantation.
Area Statement as at January 2020;
Mature Area : 2317.58 Ha Immature Area : 16.72 Ha Total Planted Area : 2334.30 Ha Total Development Area : 2335.12 Ha Total Non Crop Area : 5664.88 Ha Grand Total : 8000 Ha
Map of SOP Pelita Batu Lintang Sdn Bhd, Native Lot with the scale of 1:22000 is available.
Memorandum of Consent (MOC) is available; official document signed by the land owner agreeing the NCR land to be developed by the agent of Lembaga Pembangunan dan Lindungan Tanah (“PELITA/LCDA”)/Lembaga Kemajuan Tanah Sarawak (LKTS/SLDB) . Sample taken; Name : 63xxxx – 13 – xx10 Village : RH Bandi Area : 0.71 Ha Lot No : x39
Sighted “Surat Pengesahan Peserta Projek SOP Pelita Batu Lintang Plantation Sdn Bhd, Ulu Undop, Sri Aman. Information provided;
- Name - IC - Surveyed Ha - Lot No - Land Coordinate - Surveyed area (NCR Landowner Lot)
The individual map is confirmed by Jurukur Prima and signed by Ketua Pegawai Eksekutif Pelita Holdings Sdn Bhd.
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4.3.2.3 Legal perimeter boundary Management in progress of ☒ Confirm markers should be clearly demarcating the boundary with the ☐Minor NC demarcated and visibly internal surveyor. maintained on the ground ☐Major NC where practicable. Site inspection saw the pegging was ☒OFI done to delineate the boundary with other NCR land.
OFI Efforts have been taken by the management to conduct internal land survey, which it is to ensure the job is progressively undertaken to delineate the estate boundary from others’ NCR land.
4.3.2.4 Where there are, or have Not applicable. ☒ Confirm been, disputes, documented ☐Minor NC proof of legal acquisition of land title and fair ☐Major NC compensation that have been ☐OFI or are being made to previous owners and occupants; shall be made available and that these should have been accepted with free prior informed consent (FPIC).
Criterion 4.3.3 – Customary rights
4.3.3.1 Where lands are encumbered Not applicable ☒ Confirm by customary rights, the ☐Minor NC company shall demonstrate that these rights are ☐Major NC understood and are not being ☐OFI threatened or reduced.
4.3.3.2 Maps of an appropriate scale Not applicable ☒ Confirm showing extent of recognized ☐Minor NC customary rights shall be made available. ☐Major NC ☐OFI 4.3.3.3 Negotiation and FPIC shall Not applicable ☒ Confirm be recorded and copies of ☐Minor NC negotiated agreements should be made available. ☐Major NC ☐OFI
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4.4 Principle 4: Social responsibility, health, safety and employment condition
Criterion 4.4.1: Complaints and grievances
4.4.1.1 Social impacts should be Social Impact Assessment and ☒ Confirm identified and plans are Management Plan is available, stating ☐Minor NC implemented to mitigate the the aspect of; negative impacts and promote 1. Housing and accommodation ☐Major NC the positive ones. 2. Population and demographics ☐OFI 3. Utilities, facilities and Amenities 4. Employment and Skills The plans are identifying the issues and corrective/mitigation of negative impact and enhancement of positive impact.
Criterion / Indicator Evidence / Finding Result
Criterion 4.4.2: Complaints and grievances
4.4.2.1 A system for dealing with Complaint and Grievance Procedure ☒ Confirm complaints and grievances (Internal Stakeholders) Doc No ☐Minor NC shall be established and SOPB/SUSTAIN- M15 is available. documented. ☐Major NC ☐OFI
4.4.2.2 The system shall be able to Sample taken; ☒ Confirm resolve disputes in an Date : 11/02/2020 ☐Minor NC Issues : Internal issues effective, timely and ☐Major NC appropriate manner that is Action : Meeting at office with the person ☐OFI accepted by all parties. involved dated 14/02/2020 Status : Closed – thumbprint by the complainer.
4.4.2.3 A complaint form should be Suggestion boxes are placed at office ☒ Confirm made available at the forefront and security post. ☐Minor NC premises, where employees and affected stakeholders ☐Major NC can make a complaint. ☐OFI
4.4.2.4 Employees and the Suggestion boxes are placed at office ☒ Confirm surrounding communities forefront and security post. ☐Minor NC should be made aware that complaints or suggestions ☐Major NC can be made any time. ☐OFI
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4.4.2.5 Complaints and resolutions Complaint Logbook is kept to track all ☒ Confirm for the last 24 months shall be records. ☐Minor NC documented and made available to affected ☐Major NC stakeholders upon request. ☐OFI
Criterion 4.4.3: Commitment to contribute to local sustainable development
4.4.3.1 Growers should contribute to 1. Derma set sofa untuk Balai Polis Batu ☒ Confirm local development in Lintang – 07/01/2020 ☐Minor NC consultation with the local communities. 2. Memohon Pinjaman JCB from SK ☐Major NC Paku, Sri Aman ☐OFI 3. Disaster Relief Support for Residents of Rh Guntong, Batu Lintang RM 5,700.00 Criterion 4.4.4: Employees safety and health
Safety and Health Policy Doc No ☒ Confirm An occupational safety and SOPB/SUSTAIN – M05 signed by health policy and plan shall be ☐Minor NC 4.4.4.1 documented, effectively Group Chief Executive Officer dated ☐Major NC 29th May 2017. communicated and ☐OFI implemented.
4.4.4.2 The occupational safety and ☐ Confirm health plan shall cover the a) Safety and Health Policy has ☒Minor NC following: th ☐Major NC a) A safety and health policy, been communicated on 6 which is communicated and January 2020 attended by 24 ☒OFI implemented. employees. b) The risks of all operations i. Company Policies Briefing, shall be assessed and Sustainability Awareness documented. c) An awareness and training Briefing & Buffer Zone programme which includes Awareness Briefing. the following requirements b) HIRARC is available. for employees exposed to pesticides: c) PPE record is available – eg i) all employees involved i. Penyembur Racun shall be adequately (Rubber boot, Apron, trained on safe working practices; and Facemask, Chemical ii) all precautions attached Handglove, Eyeshade to products shall be Google, Safety Vest) properly observed and applied. ii. Harvesters (Chisel/Sickle d) The management shall Cover, Safety Helmet) provide the appropriate iii. Workshop (Cotton personal protective equipment (PPE) at the Handglove, Respirator place of work to cover all d) SOP for Chemical Handling potentially hazardous i. Safe Operating Procedure operations as identified in the risk assessment and - Meracun (Sprayer)
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control such as Hazard - Melarut/Mencampurkan Identification, Risk Racun Assessment and Risk Control (HIRARC). - Meracun menggunakan e) The management shall Erreppi establish Standard Operating Procedure for - Membaja handling of chemicals to e) CHRA was ensure proper and safe provided, produced Oct handling and storage in accordance to 2015. Occupational Safety PCEM was conducted, latest Health (Classification report on 29th Oct 2019 for Packaging and Labeling) Regulation 1997 and workers in contact with Occupational Safety PNOC (Inhalable Particulate) Health (Use and Standard of Exposure of Chemical for manuring workers and Hazardous to Health) Welding Fume (Iron Oxide Regulation 2000. Dust & Fume) for workshop. f) The management shall appoint responsible The results shown Toxic person(s) for workers' substances at these safety and health. The workplace below the Action appointed person(s) of trust must have Level (AL) and Permissiable knowledge and access to Exposure Limit (PEL) latest national regulations and collective respectively. agreements. Both results shown the g) The management shall exposure did not exceed conduct regular two-way communication with their Permissible Exposure Limit. employees where issues f) Kenawang AK Atong has been affecting their business appointed as Secretary of such as employee's health, safety and welfare HSE Committee. are discussed openly. f) OSH Meeting was conducted; Records from such i) 20th February 2020 meetings are kept and the ii) 30th October 2019 concerns of the g) Emergency Preparedness and employees and any Response for Estate Revision remedial actions taken No 1, July 2014 are recorded. a) Accident/Incident and h) Accident and emergency procedures shall exist and Near Miss Flow Chart instructions shall be b) Fire (Office or Living clearly understood by all Quarters) employees. c) Fire (Field) i) Employees trained in First d) Serious Bodily Injury Aid should be present at all field operations. A First e) Evacuation Aid Kit equipped with f) Spillage approved contents should g) Spillage (Field/Block) be available at each h) Splash worksite.
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j) Records shall be kept of all i) Flood accidents and be j) Landslide reviewed periodically at Fire drill was conducted on quarterly intervals. 13/11/2019 involving 17 workers. h) Competent first aider; i. Jackson Entingang Anak Lindang organised by Bulan Sabit Merah Malaysia. Valid date from 29th Jan 2020 – 30th Jan 2020 i) First aid kit was found placed at eg; - Workshop - Harvesting station - Spraying station - Pusat Asuhan Paku - Genset - Chemical Store j) JKKP 8 was sent to DOSH on 21/01/2020
NC It was observed that hydraulic drums were placed haphazardly without proper storage which may contribute to environmental issues.
OFI HIRARC has been made available in the estate as it is appropriate that the Recommendation/ control measures to address the identified risk is to be specifically mentioned instead of general control measures.
Criterion 4.4.5: Employment conditions
4.4.5.1 The management shall Social and Community Policy is ☒ Confirm nd establish policy on good social available, signed on 2 May 2014. ☐Minor NC practices regarding human ☐Major NC rights in respect of industrial ☐OFI harmony. The policy shall be signed by the top management and effectively
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communicated to the employees.
Criterion / Indicator Evidence / Finding Result
4.4.5.2 The management shall not In Social and Community Policy has ☒ Confirm engage in or support been developed signed by Paul Wong ☐Minor NC discriminatory practices and Hee Kwong, Group Chief Executive ☐Major NC shall provide equal Officer, stated a clause 6. Equality of ☐OFI opportunity and treatment Opportunity. regardless of race, colour, sex, religion, political opinion, nationality, social origin or any other distinguishing characteristics. 4.4.5.3 ☒ Confirm Sample taken Salary Dec 2019; ☐Minor NC 1) Nasution bin Samola (C157708) - Harvester ☐Major NC Management shall ensure - Basic Salary RM 2069.12 ☐OFI that employees’ pay and - Deduction – Power RM5.00 conditions meet legal or - Nett Salary RM 2064.10 industry minimum standards
and as per agreed Collective 2) Nursiah Sapali (B2_22_27079) Agreements. The living - Sprayer wage should be sufficient to - Basic Salary RM 1152.23 meet basic needs and - Deduction – Tax RM 2.00 provide some discretionary - Power RM 5.00 income based on minimum - Nett Salary RM 1145.25 wage. - Permit Potongan Gaji di Bawah Seksyen 114 Ordinan Buruh (Sarawak Bab 76) is available. Deduction in power usage is permitted. 4.4.5.4 ☒ Confirm Management should ensure Sighted List of Contractor Workers ☐Minor NC employees of contractors are paid based on legal or Company : Tradimaju Sdn Bhd ☐Major NC industry minimum standards ☐OFI according to the employment Estate has listed salary for drivers for contract agreed between the Feb 2020 which is above minimum contractor and his employee. wages.
4.4.5.5 The management shall Refer to Return of Person Employed, ☒ Confirm establish records that Particulars for the Month of January ☐Minor NC provide an accurate account 2020. of all employees (including ☐Major NC seasonal workers and - Name ☐OFI subcontracted workers on - IC the premises). The records -Sex
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should contain full names, -DOB gender, date of birth, date of -Race/Nationality entry, a job description, -Date Commenced Work wage and the period of -Date resigned employment. -Occupation
4.4.5.6 Appointment Letter observed; ☒ Confirm ☐Minor NC All employees shall be i) Emp No 27079 – Contract signed on provided with fair contracts 14/05/2011 ☐Major NC that have been signed by ☐OFI both employee and ii) Emp No 50376 – Contract signed on employer. A copy of 13/09/2017 employment contract is available for each and every iii) Emp No 57708 – Contract signed employee indicated in the on29/09/2019 employment records.
4.4.5.7 Record for time recording is available. ☒ Confirm Sample taken; ☐Minor NC
December 2019. ☐Major NC ☐OFI Sighted in checkroll book EMP No The management shall 27079; establish a time recording 1- Absent 1 day system that makes working 2- Working days 23 days hours and overtime 3- Paid Holiday 2 days transparent for both 4- Daily Rate 18 days employees and employer. 5- Piece Rate – 5 days
The input was transferred to the system produced Detailed Piece/Contract Worker’s Earning and Detailed Daily Worker + O/T earnings + Allowance 4.4.5.8 The working hours and Working hours is indicated in the ☒ Confirm breaks of each individual working agreement. ☐Minor NC employee as indicated in the - 8 hours per day time records shall comply ☐Major NC - 1 day off a week. ☐OFI with legal regulations and collective agreements. Overtime shall be mutually agreed and shall always be compensated at the rate applicable and shall meet the applicable legal requirement. 4.4.5.9 ☒ Confirm Wages and overtime Sample taken Salary Dec 2019; ☐Minor NC payment documented on 1) Emp No 57708 the pay slips shall be in line - Harvester ☐Major NC with legal regulations and - Basic Salary RM 2069.12 ☐OFI collective agreements. - Deduction – Power RM5.00 - Nett Salary RM 2064.10
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2) Emp No 27079 - Sprayer - Basic Salary RM 1152.23 - Deduction – Tax RM 2.00 - Power RM 5.00 - Nett Salary RM 1145.25 - Permit Potongan Gaji di Bawah Seksyen 114 Ordinan Buruh (Sarawak Bab 76) is available. Deduction in power usage is permitted.
Payment was based on piece rated basis. 4.4.5.10 - Housing ☒ Confirm - Electrical ☐Minor NC Other forms of social - Water ☐Major NC benefits should be offered by - Medical ☐OFI the employer to employees, their families or the community such as incentives for good work Estate has planned to connect water performance, bonus source from government source payment, professional provider for better domestic water development, medical care consumption by the employee. Sighted and health provisions. “Borang Permohonan Bekalan Air” has been extended to Jabatan Bekalan Air Luar Bandar on 24/12/2019. 4.4.5.11 In cases where on-site living Housing is provided to the employees ☒ Confirm quarters are provided, these with the basic amenities. ☐Minor NC quarters shall be habitable and have basic amenities ☐Major NC and facilities in compliance ☐OFI with the Workers' Minimum Standards Housing and Amenities Act 1990 (Act 446) or any other applicable legislation. 4.4.5.12 The management shall Social and Community Policy – Item 7. ☒ Confirm establish a policy and Harassment and Disciplinary Practices. ☐Minor NC provide guidelines to prevent all forms of sexual ☐Major NC harassment and violence at ☐OFI the workplace. 4.4.5.13 The management shall ☒ Confirm respect the right of all ☐Minor NC employees to form or join In Social Policy, a statement was given; ☐Major NC trade union and allow Respect the human rights of its workers own employees, where equal opportunity is ☐OFI representative(s) to facilitate given to all employees in their career collective bargaining in advancement and development accordance with applicable without discrimination based on race, laws and regulations. religion, gender and age will be Employees shall be given
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the freedom to join a trade tolerated, child and forced labour is union relevant to the industry prohibited and freedom of association or to organize themselves for is allowed; collective bargaining. Employees shall have the right to organize and negotiate their work conditions. Employees exercising this right should not be discriminated against or suffer repercussions. 4.4.5.14 Children and young persons Social and Community Policy – Item 5. ☒ Confirm shall not be employed or Employee Consultation and ☐Minor NC exploited. The minimum age Communication has stated “To respect shall comply with local, state the rights of all personnel to form and ☐Major NC and national legislation. join trade unions of their choice and to ☐OFI Work by children and young bargain collectively” persons is acceptable on family farms, under adult supervision, and when not interfering with their education. They shall not be exposed to hazardous working conditions.
Criterion 4.4.6: Training and competency
4.4.6.1 All employees, contractors OSH Training/ Briefing Annual Plan for ☒ Confirm and relevant smallholders are Year 2020 is available. ☐Minor NC appropriately trained. A ☐Major NC training programme (appropriate to the scale of ☐OFI the organization) that includes regular assessment of training needs and documentation, including records of training shall be kept. 4.4.6.2 Training needs of individual Training Needs is available ☒ Confirm employees shall be identified ☐Minor NC prior to the planning and ☐Major NC implementation of the OFI training programmes in order Training Need has been designed to ☒OFI to provide the specific skill identify required training available to the and competency required to employee, hence it could better the all employees based on their technical training that is relevant to the job description. particular employees’ roles and responsibility is also being identified to enhance his/her job competency.
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4.4.6.3 A continuous training Training conducted; ☒ Confirm programme should be 1. Scheduled Waste Handling – Used ☐Minor NC planned and implemented to Oil Handling – 29th February 2020 ☐Major NC ensure that all employees 2. Company Policies Briefing, are well trained in their job Sustainability Awareness Briefing & ☐OFI function and responsibility, in Buffer Zone Training accordance to the 3. Prosedur Meracun dengan Selamat & documented training Cara Penggunaan Alat Perlindungan procedure. dengan Betul – 15/02/2020 4. Prosedur Menebas dengan Selamat – 15/02/2020 5. Prosedur Menombak, Menyabit dan memunggah Buah Kelapa Sawit dengan Selamat. – 15/02/2020 6. Keselamatan Pemandu/Loader Training – 22/01/2019
Regular evaluation is available. 4.5 Principle 5: Environment, natural resources, biodiversity and ecosystem services
Criterion 4.5.1: Environmental Management Plan
4.5.1.1 An environmental policy and Environmental Sustainability Policy is ☒ Confirm management plan in available signed on March 2014. ☐Minor NC compliance with the relevant country and state ☐Major NC environmental laws shall be ☐OFI developed, effectively communicated and implemented. 4.5.1.2 a) Company Policies Briefing, ☒ Confirm Sustainability Awareness Briefing & ☐Minor NC Buffer Zone Training was conducted to the employee. ☐Major NC ☐OFI The environmental management plan shall cover b) Aspect and impact analysis is the following: available “ Environmental Risk Assessment Batu Lintang Estate” , a) An environmental policy covering area example ; and objectives. - Harvesting b) The aspects and impacts - Pest & Disease analysis of all operations. - Workshop - Road Maintenance -Living Quarter, Office & Landfill -Diesel - Scheduled Waste Handling
Criterion / Indicator Evidence / Finding Result
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An environmental Refer to Continuous Improvement ☒ Confirm improvement plan to Plan (Year 2020) under ☐Minor NC mitigate the negative Environmental. impacts and to promote the ☐Major NC 4.5.1.3 positive ones, shall be ☐OFI developed, effectively implemented and monitored. Example of programme to promote ☒ Confirm positive impacts; ☐Minor NC i) Carry out in house recycling A programme to promote programme, awareness campaign. ☐Major NC the positive impacts should 4.5.1.4 ☐OFI be included in the continual ii) Establishment of Bufferzone based improvement plan. on the Company’s Riparian Bufferzone and Slopes Policy – To paint red along bufferzone 1. Company Policies Briefing, ☒ Confirm An awareness and training Sustainability Awareness Briefing & programme shall be ☐Minor NC Buffer Zone Training established and 2. Prosedur Meracun dengan Selamat ☐Major NC implemented to ensure that & Cara Penggunaan Alat ☐OFI all employees understand Perlindungan dengan Betul – 4.5.1.5 the policy and objectives of 15/02/2020 the environmental 4. Scheduled Waste Handling – Used management and Oil Handling – 29th February 2020 improvement plans and are 5. Bilasan 3 kali – 28/02/2020 working towards achieving
the objectives.
☒ Confirm ☐Minor NC
Management shall organize Mesyuarat kebajikan & Alam Sekitar ☐Major NC regular meetings with was conducted on 05/12/2019. ☐OFI employees where their 4.5.1.6 concerns about
environmental quality are
discussed.
Criterion 4.5.2: Efficiency of energy use and use of renewable energy
Consumption of non- Diesel usage 2018 and 2019; ☒ Confirm renewable energy shall be ☐Minor NC optimized and closely 2018 : 408,388L monitored by establishing 2019 : 327,156L ☐Major NC baseline values and trends ☐OFI shall be observed within an Refer to Energy Optimization 4.5.2.1 appropriate timeframe. Procedure Doc SOPB/SUSTAIN – There should be a plan to M27 has identified the main source of assess the usage of non- diesel consumption derived from renewable energy including electricity generation (Diesel fuel fossil fuel, electricity and generator) and Field vehicles and energy efficiency in the machineries.
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operations over the base period. A management plan has been established to mitigate possible issues ☒ Confirm Actual Diesel Usage 2019 : 327,156L The oil palm premises shall ☐Minor NC
estimate the direct usage of Budget Diesel Usage 2019 : ☐Major NC non-renewable energy for 603,309.50L ☐OFI their operations, including
fossil fuel, and electricity to Actual usage was lower than budget 4.5.2.2 determine energy efficiency due to transfer out of 5 vehicles from of their operations. This shall estates to other locations, and 5 include fuel use by tractors were not in used for average contractors, including all 6 months due to breakdown and transport and machinery repair. operations.
☒ Confirm The use of renewable energy ☐Minor NC 4.5.2.3 should be applied where No usage ☐Major NC possible. ☐OFI
Criterion 4.5.3: Waste management and disposal
4.5.3.1 All waste products and Refer to Waste Management Plan ☒ Confirm sources of pollution shall be (WMP). Sources identified; ☐Minor NC identified and documented. ☐Major NC 1) Residential Waste – Domestic ☐OFI Waste, General/ residue waste/green/yard waste and E – waste
2) Scheduled Waste 4.5.3.2 A waste management plan Refer to Waste Management Plan ☒ Confirm to avoid or reduce pollution (WMP) covers; ☐Minor NC shall be developed and ☐Major NC implemented. The waste a) 1- Waste generated ☐OFI management plan should 2- Type of Pollution/Effects include measures for: 3- Disposal/Mitigation Method a) Identifying and monitoring
sources of waste and b) EFB is being used as organic pollution. b) Improving the efficiency of fertiliser into the selected field. resource utilization and EFB has been applied at total area recycling of potential of 79.14 ha out of planned area wastes as nutrients or 91.67ha. converting them into value-added by- products.
Criterion / Indicator Evidence / Finding Result
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Refer to Waste Management ☐ Confirm Procedure Doc No SOPB/SUSTAIN- ☒Minor NC M19 . Latest revision was on ☐Major NC 26/03/2019. ☐OFI
The management shall
establish Standard Operating
Procedure for handling of used NC chemicals that are classified
under Environment Quality 4.5.3.3 During visit to the landfill it was found Regulations (Scheduled that engine oil and chemical container Waste) 2005, Environmental were found dumped into the landfill Quality Act, 1974 to ensure which it is contrary with the scheduled proper and safe handling, waste handling. storage and disposal.
It was found that oil spillage contaminated the ground at tractor parking area without proper measure to contain the oil dispensed from the parking tractor. Empty pesticide container were used ☒ Confirm Empty pesticide containers for chemical premix . ☐Minor NC shall be punctured and disposed in an A letter from DOE to Agricultural ☐Major NC environmentally and socially Department dated 26th March 2013 ☒OFI responsible way, such that stated that empty containers that have there is no risk of gone through triple rinsing is not contamination of water treated as scheduled waste. 4.5.3.4 sources or to human health. The disposal instructions on OFI manufacturer’s labels should It could be better the management to be adhered to. Reference carry out inventory record for chemical should be made to the national empty container to trace the programme on recycling of container’s inventory and ensuring it is used HDPE pesticide disposed environmentally manner. containers.
A landfill inside the estate compound ☐ Confirm is prepared for waste dumping ☒Minor NC
☐Major NC Domestic waste should be NC ☐OFI disposed as such to minimize It was observed at workshop 4.5.3.5 the risk of contamination of the compound (tractors parking environment and area),domestic waste watercourses. were littered without proper handling which it is contrary to Waste Management Procedure – 3.1 Residential Waste. Criterion 4.5.4: Reduction of pollution and emission
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4.5.4.1 Refer to 5.0 Source of Waste and ☒ Confirm Disposal or Mitigation under Waste ☐Minor NC Management Plan, highlighting ☐Major NC source of pollution such as from; ☐OFI - Office - Living quarters An assessment of all - Security post polluting activities shall be conducted, including - Harvesting greenhouse gas emissions, - Field upkeep/maintenance scheduled wastes, solid - General store wastes and effluent. -Chemical store - Scheduled Waste Store - Lubricant Store
GHG Emission Record Oct 2018 – Sept 2019 - 142.54 kg CO2eq/mt of FFB 4.5.4.2 An action plan to reduce Disposal/Mitigation Method has been ☒ Confirm identified significant provided under section 5.0 Source of ☐Minor NC pollutants and emissions Waste and Disposal or Mitigation ☐Major NC shall be established and under Waste Management Plan ☐OFI implemented.
Criterion / Indicator Evidence / Finding Result
Criterion 4.5.5: Natural water resources
4.5.5.1 The management shall ☒ Confirm establish a water a) Water Management Procedure has ☐Minor NC management plan to been established, assessing the area ☐Major NC maintain the quality and concern such as water sources, water ☐OFI availability of natural water treatment plant and water level control resources (surface and in the field. ground water). The water
management plan may include: b) Viewed : Environmental Monitoring Report for the SOP Pelita Batu a) Assessment of water Lintang Estate at Batang Undup Area, usage and sources of Sri Aman Division. Results shown that supply. water qualities of the waterways in the b) Monitoring of outgoing estate was generally found to be water which may have moderately good, with all the negative impacts into the parameters monitored within the natural waterways at a Classes I to IIB standards of the frequency that reflects the NWQSM. estate’s current activities. c) Ways to optimize water c) WMP has identified waste of and nutrient usage to optimizing water usage by using reduce wastage (e.g. Rainwater harvesting, routine check having in place systems up and maintenance of piping system. for re-use, night Sighted on the site the recycling of application, maintenance
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of equipment to reduce water residue from chemical mixing to leakage, collection of reduce wastage. rainwater, etc.). d) Protection of water d) Buffer zone has been identified and courses and wetlands, being painted with the red paint to including maintaining and delineate the allowed spraying area. restoring appropriate riparian buffer zones at or e) Buffer zone is maintained. before planting or replanting, along all natural f) Not applicable waterways within the estate.
e) Where natural vegetation Sighted records of : in riparian areas has been
removed, a plan with a timetable for restoration 1- Oil trap sump/ sump pit shall be established and maintenance record implemented. 2- Buffer zone map f) Where bore well is being use for water supply, the
level of the ground water
table should be measured at least annually.
4.5.5.2 ☒ Confirm No construction of bunds, ☐Minor NC No evidence that waterways being weirs and dams across main ☐Major NC rivers or waterways passing obstructed during site inspection. through an estate. ☐OFI
4.5.5.3 Water harvesting practices Water harvesting has been ☒ Confirm should be implemented (e.g. implemented at workers quarters, ☐Minor NC office and chemical stores. water from road-side drains ☐Major NC can be directed and stored in conservation terraces and ☐OFI various natural receptacles).
Criterion 4.5.6: Status of rare, threatened, or endangered species and high biodiversity value area
4.5.6.1 a) Management in process of ☒ Confirm Information shall be collated that includes both the planted conducting Land Use Change ☐Minor NC Assessment (LUCA) and High area itself and relevant wider ☐Major NC Conservation Value (HCV) landscape-level ☐OFI considerations (such as Assessment, as the management is
wildlife corridors). This pursuing for RSPO. It will be information should cover: conducted by a RSPO recognised a) Identification of high consultant. The assessment will biodiversity value habitats, commence from April 2020 until such as rare and threatened August 2020. (refer to Workplan for ecosystems, that could be HCV and LUCA Assessment – 1st Feb significantly affected by the – 31st August 2020) grower(s) activities.
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b) Conservation status (e.g. The International Union on Conservation of Nature and Natural Resources (IUCN) status on legal protection, population status and habitat requirements of rare, threatened, or endangered species), that could be significantly affected by the grower(s) activities. 4.5.6.2 If rare, threatened or List of Protected Animals is available ☒ Confirm endangered species, or high ☐Minor NC biodiversity value, are present, Example of animals ; appropriate measures for ☐Major NC management planning and 1 – Sempidan ☐OFI operations should include: 2 – Sengaya a) Ensuring that any legal 3 – Murai Batu requirements relating to the 4 – Kerabak protection of the species are 5 – Wild Cat met. 6 – Eagle b) Discouraging any illegal or inappropriate hunting, fishing or collecting activities and developing responsible measures to resolve human- wildlife conflicts. 4.5.6.3 ☒ Confirm A management plan to comply Signboard “No Hunting ‘ has been ☐Minor NC with Indicator 1 shall be erected. established and effectively ☐Major NC implemented, if required. Poster has been displayed at labour ☐OFI quarters and notice board. Criterion 4.5.7: Zero burning practices
Use of fire for waste disposal ☒ Confirm and for preparing land for oil ☐Minor NC palm cultivation or replanting No replanting is being progressed 4.5.7.1 shall be avoided except in ☐Major NC specific situations, as ☐OFI identified in regional best practice. A special approval from the ☒ Confirm relevant authorities shall be ☐Minor NC sought in areas where the previous crop is highly Not applicable ☐Major NC 4.5.7.2 diseased and where there is a ☐OFI significant risk of disease spread or continuation into the next crop.
Criterion / Indicator Evidence / Finding Result
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Where controlled burning is ☒ Confirm allowed, it shall be carried out ☐Minor NC as prescribed by the 4.5.7.3 Environmental Quality Not applicable ☐Major NC (Declared Activities) (Open ☐OFI Burning) Order 2003 or other applicable laws. ☒ Previous crops should be Confirm felled or mowed down, ☐Minor NC 4.5.7.4 chipped and shredded, Not applicable ☐Major NC windrowed or pulverized or ☐OFI ploughed and mulched.
4.6 Principle 6: Best Practices
Criterion 4.6.1: Site Management
Criterion / Indicator Evidence / Finding Result
4.6.1.1 Agriculture Manual and Agriculture ☒ Standard operating Confirm th procedures shall be Circular , dated 16 November 2017. ☐Minor NC appropriately documented ☐Major NC and consistently implemented ☐OFI and monitored.
4.6.1.2 Where oil palm is grown ☒ Confirm within permitted levels on ☐Minor NC sloping land, appropriate soil ☐Major NC conservation measures shall 1) No blanket spraying permitted ☐OFI be implemented to prevent both soil erosion as well as 2) Road silt pit siltation of drains and
waterways. Measures shall be put in place to prevent contamination of surface and groundwater through runoff of either soil, nutrients or chemicals.
4.6.1.3 A visual identification or Blocking number is available for both ☒ Confirm reference system shall be estates. ☐Minor NC established for each field. ☐Major NC ☐OFI
Criterion 4.6.2: Economic and financial viability plan
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4.6.2.1 A documented business or SOP Pelita Batu Lintang Plantation ☒ Confirm management plan shall be Sdn Bhd Budget 2020 is available. ☐Minor NC established to demonstrate ☐Major NC attention to economic and ☐OFI financial viability through long-term management planning.
4.6.2.2 Where applicable, an annual ☒ Confirm replanting programme shall ☐Minor NC be established. Long term replanting programme should ☐Major NC be established and review No replanting ahead ☐OFI annually, where applicable every 3-5 years.
4.6.2.3 The business or management a) Planting material – DxP ☒ Confirm plan may contain: ☐Minor NC a) Attention to quality of b) FFB Year 2020 – 45,448mt @ planting materials and FFB. ☐Major NC 19.61mt/ha b) Crop projection: site yield ☐OFI
potential, age profile, FFB c) Budget Cost Year 2020 per mt – yield trends. RM 335/mt c) Cost of production: cost per
tonne of FFB. d) Statement of Comprehensive d) Price forecast. Income and Statement of Cashflow, e) Financial indicators: cost refer to Budget Book Year 2020 benefit, discounted cash
flow, return on investment.
4.6.2.4 The management plan shall Refer to Progress of Work Report for ☒ Confirm be effectively implemented the Month of January 2020. ☐Minor NC and the achievement of the goals and objectives shall be - Average Earning Report ☐Major NC regularly monitored, - Field Upkeep & Maintenance ☐OFI periodically reviewed Report and documented.
Criterion 4.6.3: Transparent and fair price dealing
4.6.3.1 Pricing mechanisms for the Refer to Agreement between SOPB ☒ Confirm products and other services Batu Lintang Plantation Sdn Bhd and ☐Minor NC shall be documented and Felcra Venture Sri Aman Sdn Bhd. ☐Major NC effectively implemented. Date of agreement : 25th June 2018 ☐OFI Duration : 16th July 2018 – July 2020
Third Schedule – Felcra Venture Sri Aman Sdn Bhd (Sri Aman Palm Oil Mill)
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Price Formula (Referred to in Clause 3 of the Agreement) for the FFB Delivered and Accepted at the Mill.
4.6.3.2 All contracts shall be fair, Agreement between SOPB Batu ☒ Confirm legal and transparent and Lintang Plantation Sdn Bhd and ☐Minor NC agreed payments shall be Felcra Venture Sri Aman Sdn Bhd. ☐Major NC made in timely manner. Date of agreement : 25th June 2018 ☐OFI Duration : 16th July 2018 – July 2020
Criterion 4.6.4: Contractor
4.6.4.1 Where contractors are Agreement between SOPB Batu ☒ Confirm engaged, they shall Lintang Plantation Sdn Bhd and ☐Minor NC understand the MSPO Felcra Venture Sri Aman Sdn Bhd. ☐Major NC requirements and shall Date of agreement : 25th June 2018 ☐OFI provide the required Duration : 16th July 2018 – July 2020 documentation and information. In agreement, Company’s Policies, Guidelines and Procedures and Et Cetera has stated the requirement of abiding MSPO requirements. 4.6.4.2 The management shall i) Agreement between SOPB Batu ☒ Confirm provide evidence of agreed Lintang Plantation Sdn Bhd and ☐Minor NC contracts with the contractor. Felcra Venture Sri Aman Sdn Bhd. ☐Major NC Date of agreement : 25th June 2018 ☐OFI Duration : 16th July 2018 – July 2020
ii) Carriage Agreement between SOP Pelita Batu Lintang Plantation Sdn Bhd and Tradimaju Sdn Bhd
Duration : 16th July 2018 – 15th July 2018
4.6.4.3 The management shall ☒ Confirm Appointing DQS CFS Certification (M) accept MSPO approved Sdn Bhd as external auditor. ☐Minor NC auditors to verify
assessments through a ☐Major NC
physical inspection if ☐OFI
required. 4.6.4.4 The management shall be Weighbridge LogBook has recorded ☒ Confirm responsible for the daily FFB weighbridge transaction. ☐Minor NC observance of the control Details include points applicable to the tasks ☐Major NC performed by the contractor, - Date ☐OFI by checking and signing the - SOP Ticket assessment of the contractor - Vehicle No for each task and season - SOP Weight contracted. - Mill Ticket
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- Mill Weight - Variance - Remarks.
4.7 Principle 7: Development of new planting
Criterion 4.7.1: High biodiversity value
4.7.1.1 Oil palm shall not be planted ☐ Confirm on land with high biodiversity ☐Minor NC value unless it is carried out in Not Applicable compliance with the National ☐Major NC and/or State Biodiversity ☐OFI Legislation. 4.7.1.2 No conversion of ☐ Confirm Environmentally Sensitive ☐Minor NC Areas (ESAs) to oil palm as required under Peninsular ☐Major NC Malaysia’s National Physical ☐OFI Plan (NPP) and the Sabah Forest Management Unit under the Sabah Forest Management License Not Applicable Agreement. For Sabah and Sarawak, new planting or replanting of an area 500ha or more requires an EIA. For areas below 500ha but above 100ha, a Proposal for Mitigation Measures (PMM) is required. Criterion 4.7.2: Peat land
4.7.2.1 New planting and replanting ☐ Confirm may be developed and ☐Minor NC implemented on peat land as Not Applicable per MPOB guidelines on peat ☐Major NC land development or industry ☐OFI best practice. Criterion 4.7.3: Social and Environmental Impact Assessment (SEIA)
4.7.3.1 A comprehensive and ☐ Confirm participatory social and ☐Minor NC environmental impact ☐Major NC assessment shall be Not Applicable conducted prior to ☐OFI establishing new plantings or operations.
Criterion / Indicator Evidence / Finding Result
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4.7.3.2 SEIAs shall include previous ☐ Confirm land use or history and ☐Minor NC involve independent consultation as per national ☐Major NC Not Applicable and state regulations, via ☐OFI participatory methodology which includes external stakeholders. 4.7.3.3 The results of the SEIA shall ☐ Confirm be incorporated into an ☐Minor NC appropriate management plan and operational Not Applicable ☐Major NC procedures developed, ☐OFI implemented, monitored and reviewed. 4.7.3.4 Where the development ☐ Confirm includes smallholder ☐Minor NC schemes of above 500ha in total or small estates, the ☐Major NC impacts and implications of ☐OFI how each scheme or small Not Applicable estate is to be managed should be documented and a plan to manage the impacts developed, implemented, monitored and reviewed. Criterion 4.7.4: Soil and topographic information
4.7.4.1 Information on soil types shall ☐ Confirm be adequate to establish the ☐Minor NC Not Applicable long-term suitability of the ☐Major NC land for oil palm cultivation. ☐OFI 4.7.4.2 Topographic information shall ☐ Confirm be adequate to guide the ☐Minor NC planning of planting Not Applicable programmes, drainage and ☐Major NC irrigation systems, roads and ☐OFI other infrastructure.
Criterion / Indicator Evidence / Finding Result
Criterion 4.7.5: Planting on steep terrain, marginal and fragile soils
4.7.5.1 Extensive planting on steep ☐ Confirm terrain, marginal and fragile ☐Minor NC soils shall be avoided unless Not Applicable ☐Major NC permitted by local, state and ☐OFI national laws.
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4.7.5.2 Where planting on fragile and ☐ Confirm marginal soils is proposed, ☐Minor NC plans shall be developed and ☐Major NC implemented to protect them ☐OFI Not Applicable and to minimize adverse impacts (e.g. hydrological) or significantly increased risks (e.g. fire risk) in areas outside the plantation. 4.7.5.3 ☐ Confirm Marginal and fragile soils, ☐Minor NC including excessive gradients Not Applicable and peat soils, shall be ☐Major NC identified prior to conversion. ☐OFI
Criterion 4.7.6: Customary land
4.7.6.1 No new plantings are ☐ Confirm established on recognised ☐Minor NC customary land without the owners’ free, prior and ☐Major NC informed consent, dealt with ☐OFI through a documented Not Applicable system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions. 4.7.6.2 Where new plantings on ☐ Confirm recognised customary lands ☐Minor NC are acceptable, management Not Applicable ☐Major NC plans and operations should ☐OFI maintain sacred sites.
Criterion / Indicator Evidence / Finding Result
4.7.6.3 Where recognized customary ☐ Confirm or legally owned lands have ☐Minor NC been taken-over, the documentary proof of the ☐Major NC Not Applicable transfer of rights and of ☐OFI payment or provision of agreed compensation shall be made available. 4.7.6.4 The owner of recognised ☐ Confirm customary land shall be Not Applicable ☐Minor NC compensated for any agreed
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land acquisitions and ☐Major NC relinquishment of rights, ☐OFI subject to their free prior
informed consent and negotiated agreement. 4.7.6.5 ☐ Confirm Identification and assessment ☐Minor NC of legal and recognised Not Applicable customary rights shall be ☐Major NC documented. ☐OFI
4.7.6.6 A system for identifying ☐ Confirm people entitled to ☐Minor NC compensation and for calculating and distributing Not Applicable ☐Major NC fair compensation shall be ☐OFI established and implemented. 4.7.6.7 ☐ Confirm The process and outcome of ☐Minor NC any compensation claims Not Applicable shall be documented and ☐Major NC made publicly available. ☐OFI
4.7.6.8 Communities that have lost ☐ Confirm access and rights to land for ☐Minor NC plantation expansion should Not Applicable be given opportunities to ☐Major NC benefit from the plantation ☐OFI development.
As a conclusion, management of SOP Pelita Batu Lintang Plantation Sdn Bhd to render relentless effort in order to ensure the MSPO system is being sustained and implemented across the operations. 2.4. Stakeholder’s Consultation Stakeholder consultation process carried out by taking a sample from the list of stakeholders established by SOP Pelita Batu Lintang Plantation Sdn Bhd .It was noted that the objective of activity had met to capture the view, opinion and expectation of interested parties as a result of operation run by the organization. Details of the outcome from the sessions has been reported in 939-D4_MSPO Stakeholder Consultation document.
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3. Audit Information 3.1. Contact Information Management Representative at site Name : Lim Hung Hui Name: - Name: - Title: Estate Manager Title: - Title:-
Tel: 019 – 8264811 (HP) Tel: - Tel: Email: Email: - Email: [email protected]
Audit team
Name: Mohd Hidhir Name: - Name: - Name: - Hamdan Title - Title : - Title Title : Audit Team
Leader
Tel +603-3342 3259 Tel +603-3342 3259 Email Email [email protected] [email protected]
Contact person at DQS Tee Pei Chin
Tel +603-3342 3259 Email: [email protected]
3.2. Audit Data Audited sites and sampling basis
- Ref. No: - Shifts: -
Main business/processes at location, please specify: Oil Palm Plantations – Group certification Please refer to Appendix 1: Group Certification Member, MPOB License, Main business/processes at location Sampling site in case of group certification is applied? ☐ Yes ☒No
Complete below section if ‘Yes’
Sampling process is meeting with Malaysian Sustainable Palm ☐ Yes ☐ No Oil (MSPO) Certification System Procedure?
Site sample; S = r√n
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S = sample size n = number of group members r = Risk factor (Low, medium or high)
3.3. List of the site audited each year please refer to Appendix 1: Group Certification Member, MPOB License, Main business/processes at location
3.4. Audit Result Current scope of registration Oil Palm Plantations –Individual certification Production of Sustainable Fresh Fruit bunches from 14.823.00 ha total oil palm planted area
2,334.30 ha total certified area
The top level of Management System manual Current revision of manual: and related management system documentation were reviewed and found to ☒ Yes ☐ No conform to all applicable standard requirements Remarks: for documentation.
In case of surveillance audit ☐ Yes ☐ No Changes to the management system, its Remarks: Stage 2 Audit documentation, processes, or structures have been implemented.
In case of recertification audit ☐ Yes, management review records The overall system performance for the past indicate achievement of established certification cycle demonstrates the continued objectives and continuous effectiveness of the system. improvement. (two criteria for evaluation) ☐ Yes, trends of corrective action records indicate effectiveness and continuous improvement. ☐ No, see remarks and corrective action plan Remarks: Stage 2 Audit
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Internal audits and corrective action records ☒ Yes ☐ No show continued conformance of the management system to selected standards. Remarks:
In the past certification period, similar findings ☐ Yes ☐ No were identified repeatedly Remarks: Not applicable
In the past certification period, the certification ☐ Yes ☐ No was placed under probation or suspension or special audits were performed to address Remarks: Not applicable deficiencies
The management system is effective and fulfils ☐ Yes the requirements: ☒ Only partly – see corrective action plans ☐ No – see corrective action plans Number of findings: Major nonconformities: - Minor nonconformities: 3 On site verification of nonconformities needed ☐ Yes ☒ No via follow-up / special audits:
The agreed corrective actions of the previous ☐ Effectively implemented audits are ☐ Not effectively implemented Remarks: ☒ This appraisal is not applicable.
The current registration certificate was ☐ Yes ☐ No reviewed and found to be accurate. Remarks: Not applicable , currently is Stage expiration date: not applicable 2 audit
The Registered Firm Mark ((DQS and MSPO ☒ Yes ☐ No logo) & Accreditation Body Marks are being used appropriately. Remarks: No usage of logo
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Risk Assessment justification Current Risk justified; ☐ High ☒ Medium ☐ Low Lead auditor justification ☐ High ☒ Medium ☐ Low Remarks: - Notes:
3.5. Next Step 3.5.1 Activity of the customer Corrective actions: ☐ Corrective actions not necessary ☒ Corrective actions will be implemented and reviewed for effectiveness as agreed by 4-Apr-20
Opportunities for Improvement: Identified improvement potential will be evaluated internally and incorporated into the continual improvement process if deemed beneficial. Nonconformities, identified during an audit, shall be closed with evidence of effectiveness within defined time lines. Otherwise, certificates may be put on hold or be withdrawn.
3.5.2 Activity of DQS
Type of the next assessment: MS 2530-3:2013 ☒ ☐ Advancement / Surveillance Re-certification
Deadline of the next assessment: By March 2021
Next assessment data: Planned date for next assessment: March 2021 (non-binding estimate of person (week or month, if appropriate) days) For 2 person-day(s) By 1 auditor(s)
Main emphasis will be on the As per MSPO audit checklist following subjects:
Customer requests: ☐ Information on ☐ Quotation for ☐ Telephone call from Customer Service Representative
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Additional remarks:
4. Overview of Non-Conformity 4.1. Action Plan 1 Refer to MSPO Clause 4.5.3.3 - The management shall establish Standard Operating Procedure for handling of used chemicals that are classified under Environment Quality Regulations (Scheduled Waste) 2005, Environmental Quality Act, 1974 to ensure proper and safe handling, storage and disposal.
i) During visit to the landfill it was found that engine oil and chemical container were found dumped into the landfill which it is contrary with the scheduled waste handling. ii) It was found that oil spillage contaminated the ground at tractor parking without proper measure to contain the oil dispense from the parking tractor.
4.2. Action Plan 2 Refer to MSPO Clause 4.4.4.2e - The management shall establish Standard Operating Procedure for handling of chemicals to ensure proper and safe Handling and storage in accordance to Occupational Safety Health (Classification Packaging and Labeling) Regulation 1997 and Occupational Safety Health (Use and Standard of Exposure of Chemical Hazardous to Health) Regulation 2000.
It was observed that hydraulic drums were placed haphazardly without proper storage which may contribute to environmental issues.
4.3. Action Plan 3 Refer to MSPO Clause 4.5.3.5 - Domestic waste should be disposed as such to minimize the risk of contamination of the environment and watercourses.
It was observed at workshop compound (tractors parking area), domestic waste were littered without proper management which it is contrary to Waste Management Procedure – 3.1 Residential Waste.
5. Overview of OFI and concern 5.1. Opportunity for Improvement 5.1.1. OFI 1 Efforts have been taken by the management to conduct internal land survey, which it is to ensure the job is progressively undertaken to delineate the estate boundary from others’ NCR land.
5.1.2. OFI 2
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HIRARC has been made available in the estate as it is appropriate that the recommendation/ control measures to address the identified risk is to be specifically mentioned instead of general control measures.
5.1.3. OFI 3 Training Need has been designed to identify required training available to the employee, hence it could better the technical training that is relevant to the particular employees’ roles and responsibility is also being identified to enhance his/her job competency.
5.1.4. OFI 4 It could be better the management to carry out inventory record for chemical empty container to trace the container’s inventory and ensuring it is disposed environmentally manner.
5.2. Concern Area for Next Year Audit Environmental, Legal requirements, Safety and Health
6. Attachment and Appendix 6.1. Attached Documents (Mandatory For DQS Auditor To Use Only):):
☒ Updated Basic Data
☒ Auditor Independence
☒ Participant List(s) – opening and closing
☒ MSPO Template Certificate (initial / recertification / when deemed necessary)
(soft copy and signed)
☒ Action plan (if applicable)
☒ Stakeholder Consultation Report
☒ Audit plan
☐ latest List of smallholders by client
☐ Mutual auditor evaluation
☐ Others / Further standard specific documents [if applicable]
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6.2. Appendix 1: Group Certification Member, MPOB License, Main business/processes at location N Ref. Name of MPOB Address GPS Certifie Planted FFB Production Audit Year o No. unit Licens Coordinates d Area Area (MT) . e No (ha) (ha) Y Y Y Y Y 1 2 3 4 5 ☐ ☐ ☐ ☐ ☐
Not Applicable
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6.3. Appendix 2: Audit Cycle Plan
/
MS2530-3:2013
1st
4th 3rd
Organized Plantation- Individual 2nd
Surveillance Surveillance Surveillance Surveillance Surveillance
Certification 1 audit Stage
Stage 2 2 audit Stage Recertification
Recertification
21
Ref. No. / AZ: 50452041 Date:
5 Mar 5 Mar
2020 20
-
March March 3
Lead auditor:
Organization: SOP Pelita Batu Lintang Plantation Sdn
(initials) Bhd HID
4.1 Management Commitment and
Responsibility Malaysian Sustainable Palm Oil (MSPO) Policy 4.1.1 X P Internal Audit 4.1.2 X P Management Review 4.1.3 X P Continual Improvement 4.1.4 X P 4.2 Transparency Transparency of information and documents relevant to X 4.2.1 P MSPO requirement Transparent method of communication and consultation 4.2.2 X P Traceability 4.2.3 X P 4.3 Compliance to Legal Requirement Regulatory requirements 4.3.1 X P Land use rights 4.3.2 X P Customary rights 4.3.3 X P 4.4 Social responsibility, health, safety and
employment condition Social impact assessment (SIA) 4.4.1 X P Complaints and grievances 4.4.2 X P Commitment to contribute to local sustainable X 4.4.3 P development Employees safety and health 4.4.4 N P Employment conditions 4.4.5 X P Training and competency 4.4.6 X P 4.5 Environment, natural resources,
biodiversity and ecosystem services Environmental management plan 4.5.1 X P Efficiency of energy use and use of renewable energy 4.5.2 X P Waste management and disposal 4.5.3 N P Reduction of pollution and emission 4.5.4 X P Natural water resources 4.5.5 X P Status of rare, threatened or endangered species and X P 4.5.6 high biodiversity value area. Zero burning practices 4.5.7 X P
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/
MS2530-3:2013
1st
4th 3rd
Organized Plantation- Individual 2nd
Surveillance Surveillance Surveillance Surveillance Surveillance
Certification 1 audit Stage
Stage 2 2 audit Stage Recertification Recertification 4.6 Best Practices Site management 4.6.1 X P Economic and financial viability 4.6.2 X P Transparent and fair price dealing 4.6.3 X P Contractor 4.6.4 X P 4.7 Development of new plantings High biodiversity Value 4.7.1 Peat land 4.7.2 Social and Environment Impact Assessment (SEIA) 4.7.3 Soil and topographic information 4.7.4 Planting on steep terrain, marginal and fragile soils 4.7.5 Customary land 4.7.6
Use of DQS certificates, marks and symbols X P Use of MSPO logo, marks and symbols X P (extend this table as needed to fit in all relevant processes)
Legend: P = required, to be planned; O= optional, to be audited when changes occurred or planned or previous NC; ✓ or X = audited N = nonconformity identified The lead auditor expands this planning individually. Report prepared on Mohd Hidhir bin Hamdan Date: 6 March 2020 Lead Auditor for MS 2530-3:2013
For Technical review:
31 March 2020 Date Certification Decision Making on behalf of DQS (Name and Signature)
For Peer review: Remark: Not applicable in case of surveillance or special audit
REMI BIN RASIDI 7 March 2020 Date Document reviewing on behalf of DQS (Peer Reviewer 1)
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10 March 2020 Mokmin Bahari Date Document reviewing on behalf of DQS (Peer Reviewer 2)
Disclaimer: The contents of this report and all information received in association with the audit of the subject company will be maintained in the strictest confidence by the members of the audit team and by DQS, in accordance with prior agreements.
DQS maintains ownership of this report. The content of this report and all information received in relation to the audit and certification of the audited organization will be treated confidential and not disclosed to third parties. For exceptions e.g. disclosure to accreditation body refer to DQS Certification and Assessment Regulations.
This report is considered as final by the audit team, if you do not get any adverse information from DQS within 14 days after the last audit day.
The recommendation of the audit team is subject to review and approval by DQS technical certification experts, who take binding certification decision. An appeal process is defined in DQS Certification and Assessment Regulations. Should DQS obtain any information indicating nonconformity of the certified management system, DQS will notify the certified organization timely and initiate investigation and evaluation of such information.
Distribution
MS 2530-3:2013 DQS SOP Pelita Batu Lintang Plantation Sdn Bhd
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