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Roundtable on Sustainable Palm Oil Annual Surveillance Audit Report Report No.: ASA3 18502207

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Roundtable on Sustainable Palm Oil Annual Surveillance Audit Report Report No.: ASA3 18502207 Roundtable on Sustainable Palm Oil Annual Surveillance Audit Report Report no.: ASA3_18502207 Surveillance assessment against the RSPO Principles & Criteria NI Malaysia year 2010 Sime Darby Plantation Sdn. Bhd. SOU 11 Kerdau Palm Oil Mill Level 3A, Main Block, Plantation Tower, No 2, Jalan PJU 1A/7, Ara Damansara, 47301 Petaling Jaya, Selangor Darul Ehsan,Malaysia. Date of Assessment: 08 – 12 April 2014 Report prepared by: Fadli (RSPO Lead Auditor) Certification Body: PT TUV Rheinland Indonesia Menara Karya, 10th Floor Jl. H.R. Rasuna Said Block X-5 Kav.1-2 Jakarta 12950,Indonesia Tel: +62 21 57944579 Fax: +62 21 57944575 www.tuv.com/id TABLE OF CONTENTS 1.0 SCOPE OF ANNUAL SURVEILLANCE AUDIT .................................................... 3 1.1 National Interpretation Used 3 1.2 Type of Assessment 3 1.3 Certification Details 3 1.4 Location and Maps 4 1.5 Organisational Information / Contact Person 9 1.6 Description of Supply Base 10 1.7 Actual production volumes, tonnages and projected outputs. 10 1.8 Dates of Plantings and Replanting Cycles 11 1.9 Area of Plantation (Total, Planted and Mature) 11 1.10 Progress Against Time Bound Plan 13 1.11 Compliance to Rules for Partial Certification 14 1.12 Progress of associated smallholders or outgrowers towards RSPO compliance 15 1.13 Approximate Tonnages Certified 15 2.0 ASSESSMENT PROCESS .................................................................................. 16 2.1 Certification Body 16 2.2 Qualifications of Lead Assessor and Assessment Team 16 2.3 Assessment Methodology & Agenda 17 3.0 ASSESSMENT FINDINGS ................................................................................... 19 3.1 Summary of Findings 19 3.2 Status of Previously Identified Non-conformities 36 3.3 Identified Non-conformances, Corrective Actions Taken and Auditors Conclusions 42 3.4 Noteworthy Positive Components 48 3.5 Issues Raised by Stakeholders and Findings Pertaining to Issues 48 4.0 CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY ............................................................................................... 49 4.1 Date of Next Surveillance Visit 49 4.2 Acknowledgements of Internal Responsibility and Formal Sign-Off by Client 49 APPENDICES ............................................................................................................ 50 Appendix 1: List of Abbreviations 50 Appendix 2: List of Stakeholders Interviewed and Contacted 51 Appendix 3: Observations and Opportunities for Improvement 52 RSPO 3rd Annual Surveillance Audit Report - Sime Darby Plantation Sdn.Bhd– Kerdau Palm Oil Mill- Pahang- Page 3 of 52 1.0 SCOPE OF ANNUAL SURVEILLANCE AUDIT 1.1 National Interpretation Used The operations of the palm oil mill(s) and its supply base of FFB were assessed against the Malaysia National Intepretation year 2010 of the RSPO Principles & Criteria. 1.2 Type of Assessment This 3rd annual surveillance certification assessment was carried out on 1 mill and 5 estates under Kerdau Palm Oil Mill owned by Sime Darby Plantation Sdn. Bhd. The date of certification of this unit was May 11 to 18, 2009 . 1.3 Certification Details The details of RSPO certification of Sime Darby Plantation Sdn Bhd, SOU 11 Kerdau Palm Oil Mill are as per the table below Table 1: RSPO Certification details of Kerdau Palm Oil Mill RSPO Membership no.: 1-0008-04-000-00 RSPO Certificate no.: 824 502 14019 (Previously 18502207 001 and C819155CU-RSPO- 01.2011) Date of first RSPO certificate & validity: 07/07/2011 valid until 06/07/2016 Date of certification audit: May 11 to 18, 2009 Date of previous surveillance audit: May 14 to 18, 2013 Date of revised RSPO certificate & - validity (if applicable): CPO tonnages claimed: 48,075 MT PK tonnages claimed: 11,368 MT QMF: RSPO-007b-11 RSPO 3rd Annual Surveillance Audit Report - Sime Darby Plantation Sdn.Bhd– Kerdau Palm Oil Mill- Pahang- Page 4 of 52 1.4 Location and Maps Figure 1: Location of SOU Kerdau estates and mill in Pahang, Malaysia Kerdau POM & Estates QMF: RSPO-007b-11 RSPO 3rd Annual Surveillance Audit Report - Sime Darby Plantation Sdn.Bhd– Kerdau Palm Oil Mill- Pahang- Page 5 of 52 Figure 2: Kerdau Estate GPS Surveyed Map Kerdau POM QMF: RSPO-007b-11 RSPO 3rd Annual Surveillance Audit Report - Sime Darby Plantation Sdn.Bhd– Kerdau Palm Oil Mill- Pahang- Page 6 of 52 Figure 3: Sg. Mai Estate GPS Surveyed Map QMF: RSPO-007b-11 RSPO 3rd Annual Surveillance Audit Report - Sime Darby Plantation Sdn.Bhd– Kerdau Palm Oil Mill- Pahang- Page 7 of 52 Figure 4: Location map of Mentakab Pahang QMF: RSPO-007b-11 RSPO 3rd Annual Surveillance Audit Report - Sime Darby Plantation Sdn.Bhd– Kerdau Palm Oil Mill- Pahang- Page 8 of 52 Figure 5: Jentar Estate estate map Figure 7: Chenor Estate estate map QMF: RSPO-007b-11 RSPO 3rd Annual Surveillance Audit Report - Sime Darby Plantation Sdn.Bhd– Kerdau Palm Oil Mill- Pahang- Page 9 of 52 Table 2: GPS locations for all estates and mills included in annual surveillance assessment Name of mill / GPS locations Location estate Latitude Longtitude Kerdau Palm Oil Mill Kilang Kelapa Sawit Kerdau, 3º34’07” 102º18’28” Wakil Pos Kerdau, 28010 Temerloh Pahang Ladang Kerdau, Wakil Pos Kerdau 28010 3º34’07” 102º18’28” Kerdau Estate Temerloh, Pahang Ladang Jentar, Wakil Pos Kerdau, 28010 3º34’07” 102º18’28” Jentar Estate Temerloh , Pahang Ladang Mentakab/ Lanchang/ Edensor, c/o 3º28’67” 102º10’95” Mentakab Estate Lanchang Division, 28500 Lanchang, Pahang Darul Makmur. Sg Mai Estate Ladang Sungai Mai, 27000 Jerantut, Pahang 3º48’50” 102º21’40” Ladang Chenor (KT), Sungai Jerik, 26400 Bandar 3º34’07” 102º18’28” Chenor Estate* Pusat Jengka, Pahang Note * : During the 1st certification audit, Chenor estate was part of SOU 12 Jabour, since 2010 Sime Darby management decided to include Chenor estate in the SOU 11 Kerdau and all FFB from Chenor estate is now supplied to Kerdau Palm Oil Mill 1.5 Organisational Information / Contact Person SOU 11 Kerdau estates are owned and operated by Sime Darby Plantation Sdn. Bhd, among the largest player in oil palm industry in Malaysia. The company has 65 individual “Strategic Operating Units” units (SOU’s) and each SOU comprises a number of individual estates In Malaysia there are 39 SOU’s with 140 individual estates, extending to 229,470 ha. In Indonesia there are 26 SOU’s, (Known as companies) with 90 individual estates, extending to 295,156 ha. It is noted that 21 SOU’s (In Malaysia) have either been certified or are currently in the process of being certified. Sime Darby Plantation Sdn. Bhd is merger of Sime Darby Berhad, Golden Hope Plantations berhad and Kumpulan Guthrie Berhad which was done on November 2007. The company represents one of the five core Divisions of Sime Darby group and is involved in the following: Oil Palm cultivation, Agribusiness & Food, Research and Development. The Plantation division has location in several Malaysia locations such as peninsular Malaysia, Sabah and Serawak and Indonesia location such as Kalimatan, Sumatera and Sulawesi. Company has total 524,624 hectares of planted oil palm. All products from Sime Darby Plantation Sdn. Bhd is supplied to their division’s downstream operations which has location in 15 countries around the world. Its business activites include the following; Edible oil refining, production of oils and fats products, Oleochemical and Biodisel. Alongside oil palm, the division is also involved in agri business activities and cultivationof rubber. In keeping with the aspiration of making sustainable future real for everyone, Sime Darby Plantation Sdn.Bhd claims to make a conscious and concerted effort towarda conservation and protection of the environment, the rehabilitation of forests, protection of wildlife and promotion of the well being of the communities in which it operates. Contacts details of the company are as follows: Company Name: Sime Darby Plantation Sdn. Bhd. Kerdau Palm Oil Mill Address: Head Office : PSQM, Level 3A, Main Block, Plantation Tower, No. 2, Jalan PJU 1A/7, Ara Damansara, 47301 Petaling Jaya, Selangor Darul Ehsan, Malaysia. Mill Location: Kilang Kelapa Sawit Kerdau, Wakil Pos Kerdau, 28010 Temerloh Pahang Contact Person: Pn. Sabarinah Marzuky Telephone: 03-7848 4388 Email: [email protected] QMF: RSPO-007b-11 RSPO 3rd Annual Surveillance Audit Report - Sime Darby Plantation Sdn.Bhd– Kerdau Palm Oil Mill- Pahang- Page 10 of 52 1.6 Description of Supply Base The Kerdau palm oil mill sourced FFB from below mentioned group estate and smallholders under Sri Kerdau Sdn. Bhd., a FFB collector from smallholder. Table 3 : FFB Supply Information for Kerdau Palm Oil Mill for July 2012 to June 2013 and July 2013 to March 2014 FFB received FFB received FFB Contributors July 2012 to June 2013 July 2013 – March 2014 Tonnes % Tonnes % Company owned estates: Chenor estate 42,530.40 16.58 30,703.21 15.71 Jentar estate 28,281.80 11.03 20,081.90 10.27 Kerdau estate 49,471.15 19.29 40,622.34 20.78 Mentakab estate 61,835.32 24.11 45,288.72 23.17 Sungai Mai estate 64,323.62 25.08 50,949.07 26.06 Sub-total 246,442.29 96.08 187,645.24 96.00 Outgrower : Sri Kerdau Commodities 10,057.50 3.92 7,825.98 4.00 TOTAL 256,499.79 100.00 195,471.22 100.00 1.7 Actual production volumes, tonnages and projected outputs. Table 4: Certified tonnages claimed, certified tonnages purchased or sold, total and projected CPO and PK production from Kerdau Palm Oil Mill Amount (MT) Description CPO PK Certified tonnages claimed 48,075.00 11,368.00 Certified tonnages sold* - - Certified tonnages purchased** - - Actual
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