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21St December 2011 Felda Palm Industries Sdn

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21St December 2011 Felda Palm Industries Sdn CONFIDENTIAL 1 RSPO MAIN ASSESSMENT REPORT ASSESSMENT DATE: 19TH – 21ST DECEMBER 2011 FELDA PALM INDUSTRIES SDN.BHD. TEMENTI CERTIFICATION UNIT TRIANG, PAHANG DARUL MAKMUR, MALAYSIA SIRIM QAS INTERNATIONAL SDN. BHD. Building 4, SIRIM Complex, No. 1 ,Persiaran Dato‟ Menteri, Section 2, P.O. Box 7035, 40911 Shah Alam, Selangor, Malaysia. Tel: 603 5544 6448 Fax: 603 5544 6763 Website : www.sirim-qas.com.my SIRIM QAS INTERNATIONAL SDN. BHD. Building 4, SIRIM Complex, No. 1 ,Persiaran Dato‟ Menteri, Section 2, P.O. Box 7035, File Reference 40911 Shah Alam, Selangor, Malaysia. EF00730004 RSPO ASSESSMENT REPORT CLIENT: FELDA AGRICULTURAL SERVICES SDN BHD ADDRESS : TINGKAT 7, BALAI FELDA, JALAN GURNEY 1, 54000 KUALA LUMPUR, MALAYSIA DETAIL OF SITE PALM OIL MILL: FELDA PALM INDUSTRIES SDN BHD , TEMENTI PALM OIL MILL SUPPLY BASE : 1. FELDA TEMENTI 2. FELDA RENTAM 3. FELDA SEBERTAK 4. LADANG FELDA BERA SELATAN 1 5. LADANG FELDA BERA SELATAN 4 ADDRESS OF SITES : FELDA TEMENTI PALM OIL MILL COMPLEX CERTIFICATION UNIT KILANG SAWIT TEMENTI 38300 TRIANG, PAHANG DARUL MAKMUR, MALAYSIA ASSESSMENT DATE: STAGE 1 : 17TH – 18TH OCTOBER 2011 DURATION : 6 AUDITOR DAYS STAGE 2 : 19TH - 21ST DECEMBER 2011 DURATION : 10 AUDITOR DAYS STANDARD : ROUNDTABLE ON SUSTAINABLE PALM OIL (RSPO) INCLUDING SMALLHOLDER MALAYSIA NATIONAL INTERPRETATION WORKING GROUP (MY-NIWG) : NOV 2010 SCOPE OF CERTIFICATION ASSESSMENT: PRODUCTION OF CRUDE PALM OIL AND PALM KERNEL i TABLE OF CONTENT Heading Page no Abbreviation used 1.0 Introduction 1.1 Description of The Certification Unit 1 1.2 Description of FELDA and Its Settlers Scheme 1 1.3 Organization Structure in a Scheme 2 1.4 Workforce Composition 4 1.5 Time Bound Plan for Other Management Units 4 1.6 Location of Mill and Estate 6 1.7 Other Management System Certification Held & Contact Person 7 1.8 Approximate Tonnages Offered for Certification 8 2.0 Assessment Process 2.1 Assessment Methodology 8 2.2 Date of Next Surveillance Audit 8 2.3 Assessment Team 9 2.4 Stakeholder Consultation 11 3.0 Assessment Findings 13 4.0 Assessment Recommendation 62 5.0 Organizations Acknowledgement of Internal responsibility and Formal sign-off of assessment findings 63 List of Tables Table 1 Total and Composition of Workers in the Certification Unit 4 Table 2 Time Bound Plan for Certification Units 5 Table 3 Location of Mill and Estates 6 Table 4 Average Annual FFB Contribution by Each Estates 6 Table 5 Year of Establishment of Production from Estate and Area Planted with Oil Palm 7 Table 6 Approximate CPO & PK Tonnages Estates Claimed for Certification 8 List of Attachments Attachment 1a Location Map for FELDA Tementi Certification Unit and neighbouring context 64 Attachment 1b Location Map of Felda Tementi 65 Attachment 1c Location Map of Felda Rentam 66 Attachment 1d Location Map of Felda sebertak 67 Attachment 1e Location Map of Ladang Felda Bera Selatan 1 68 Attachment 1f Location Map of Ladang Felda Bera Selatan 4 69 Attachment 2 Assessment Programme 70 Attachment 3 List and Comment from Stakeholders 75 Attachment 4 Detail Of Non-Conformity And Corrective Actions Taken 78 ii Attachment 5a Soil Map for Ladang Felda Bera Selatan 04 79 Attachment 5b Soil Map for Felda Rentam 80 Attachment 5c Soil Map for Felda Tementi 81 Attachment 6 Opportunities for Improvement 82 Abbreviations: BOD Biochemical Oxygen Demand B.Sc. Bachelor of Science CHRA Chemical Health Risk Assessment CoC Consolidated Annual Charges COD Chemical Oxygen Demand CPO Crude Palm Oil CU Certification Unit DID Drainage and Irrigation Department, Malaysia DOE Department of Environment DOSH Department of Occupational Safety and Health EARA Environmental Auditors Registration Association EB Executive Board EFB Empty Fruit Bunch EMP Environmental Management Plan EPF Employees Provident Fund EQA Environmental Quality Act ERT Endangered, Rare and Threatened Species FIC FELDA Investment Cooperative FFB Fresh Fruit Bunch GAP Good Agricultural Practice GPS Global Positioning System GPW Gabungan Pembangunan Wanita (Women Development Association) GSA Group Settlement Act Ha Hectares HCV High Conservation Value HIRARC Hazard Identification, Risk Assessment and Risk Control IEMA Institute for Environmental Management and Assessment IPM Integrated Pest Management ISP Incorporated Society of Planters IRCA International Register of Certificated Auditors JCC Joint Consultative Committee JKKR Jawatankuasa Kemajuan Rancangan (Scheme Development Rancangan) M.E Master of Engineering MSDS Material Safety Data Sheet MNS Malaysian Nature Society MOA Memorandum of Alliance or Agreement MPOA Malaysian Palm Oil Association MPOB Malaysia Palm Oil Board MYNI Malaysia National Interpretation MYNI – WG Malaysia National Interpretation – Working Group NCR Non-Conformity Report iii NGO Non Governmental Organisation OER Oil Extraction Rate OFI Opportunity for Improvement OHD Occupational Health Doctor OSH Occupational Safety and Health OHSAS Occupational Health and Safety Assessment Series PERKESO Social Security Organization PDRM Polis Di-Raja Malaysia Ph.D. Doctor of Philosophy POM Palm Oil Mill POME Palm Oil Mill Effluent PPE Personal Protective Equipment RAMSAR Convention on Wetlands RSPO Roundtable on Sustainable Palm Oil SIA Social Impact Assessment SS Suspended Solid SOP Standard Operating Procedure USA United States of America USECHH Use and Standards of Exposure of Chemicals Hazardous to Health WTP Water Treatment Plant WWF World Wide Fund for Nature iv RSPO STAGE 2 ASSESSMENT REPORT 1.0 INTRODUCTION 1.1 Description of the Certification Unit The certification unit (CU) of FELDA Agricultural Services Sdn Bhd, Tementi Palm Oil Mill Complex (hereafter refer as Tementi Certification Unit (Tementi CU) is one of the seventy one complexes of FELDA schemes being assessed for certification against the RSPO Principles and Criteria for Sustainable Palm Oil Production, including smallholder, Malaysia National Interpretation Working Group (RSPO MYNIWG: November 2010). The Tementi CU is located within the state of Pahang. The assessed CU comprised of FELDA Palm Industries Sdn.Bhd., Tementi Palm Oil Mill, FELDA Tementi, FELDA Rentam, FELDA Sebertak, Ladang FELDA Bera Selatan 1 and Ladang FELDA Bera Selatan 4. Tementi Palm Oil mill commenced its operations in February 1979 with a processing capacity of 40 mt of FFB per hour. The total combined land area of the five estates is 13,432 hectares (ha). Although Tementi POM receive and process third party FFB this assessment did not include the third party FFB suppliers. The three smallholder schemes at this CU began as far back as 1978. They are FELDA Tementi, FELDA Rentam and FELDA Sebertak and are land owned by settlers in accordance with the Group Settlement Act (GSA) 1960 and throughout Malaysia they are being managed by the Federal Land Authority, in short FELDA, a government of Malaysia owned agency. In addition, at this CU there are two plantations like estate, that is, Ladang FELDA Bera Selatan 1 and Ladang FELDA Bera Selatan 4 that is managed by FELDA Plantation Sdn. Bhd (FPSB), a subsidiary of FELDA Holdings. FPSB is a service company formed to manage areas (that was not given to settlers) in a commercial manner belonging to FELDA Holdings. One Manager manages one smallholder‟s scheme. He is primarily tasked to oversee the socio- economic aspect and welfare of the settlers whereas on the field operational support he is assisted by FELDA Technoplant Sdn. Bhd (hereafter referred to as FTP). Unlike the smallholder schemes the estate is solely managed by a Plantation Manager of FPSB. FTP is a subsidiary of FELDA Holdings which is responsible for managing smallholder plantation areas from replanting to production of FFB as well as the maintenance of these planted areas. 1.2 Description of FELDA and its Settlers Scheme FELDA is a government agency established under the Land Development Ordinance on 1st July 1956. Its objectives are to provide land for the landless, to uplift socio-economic status of rural communities; and to encourage the development of a progressive, productive and disciplined settlers community. In the following year FELDA initiated the first land development by planting rubber trees at Lurah Bilut, Pahang. In 1958, five similar schemes were opened. Subsequently, via Group Settlement Act 1960 FELDA developed more areas. Currently, totalling 853,313 hectares (as of March 2012) of land have been opened for cultivation, infrastructure, settlers‟ settlement housing and public facilities for 112,635 settlers. From that, 811,140 hectares are agricultural area of which 722,946 hectares or 84.7 % are planted with oil palm plantation. The remaining Page 1 of 83 area is planted with rubber, sugar cane, timber, and fruit trees and plot for research and development. FELDA settlers‟ settlement area (village) accounts for 42,173 hectares or 4.9 % of land developed. The incorporation of FELDA allows it to provide integrated services with economies of scale related to the provision of economic opportunities for the settler‟s community to ensure stable income for the settlers. Managed as an estate style (2200 – 2500 ha.), a typical settlers‟ settlement includes between 400-600 settlers per scheme and each settler is given a house and a plot of land to farm. At Tementi CU each settler is assigned to a particular settlement, and is given 10 acres (4.0 ha.) of land to cultivate either rubber or oil palms. All settlers must reside at the settlement itself, and are allotted an additional 0.25 acres (0.10 ha.) in a planned village, where their home - already built by FELDA - is located. About 20 houses made up a block and each block chose its own representatives who voice their concerns to their Scheme Development Committee (JKKR) and FELDA Management. All basic infrastructures, such as piped water, electricity, schools, clinics, and places of worship are provided either by FELDA or through government agencies. The costs of acquiring, developing and allocating the land are borne by loans made to FELDA settlers. These loans are repaid in monthly installments deducted from the settlers' income over a 15-year period.
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