CONFIDENTIAL
i
RSPO MAIN ASSESSMENT REPORT ASSESSMENT DATE: 27TH – 29TH DECEMBER 2011
FELDA PALM INDUSTRIES SDN BHD KILANG SAWIT BUKIT KEPAYANG 28300 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‟ File Reference Menteri, Section 2, P.O. Box 7035, 40911 Shah Alam, Selangor, Malaysia. EF00730003
RSPO P& C MAIN ASSESSMENT REPORT
CLIENT: FELDA AGRICULTURAL SERVICES SDN BHD
ADDRESS : Tingkat 7, Balai FELDA, Jalan Gurney 1, 54000 Kuala Lumpur, Malaysia
PALM OIL MILL: FELDA PALM INDUSTRIES SDN BHD Bukit Kepayang Palm Oil Mill
SUPPLY BASE:
1. Felda Plantation Terapai 3, D/A Felda Mayam, 28300 Triang, Pahang 2. Felda Bukit Kepayang, Pejabat Felda Bukit Kepayang, 28200 Bera, Pahang 3. Felda Mayam, Pejabat Felda Mayam, 28200 Triang, Pahang 4. Felda Purun, Pejabat Felda Purun, 28300 Triang, Pahang
ADDRESS OF SITE:
FELDA, Bukit Kepayang Palm Oil Mill Complex Certification Unit Kilang Sawit Bukit Kepayang 28300 Triang, Pahang Darul Makmur, Malaysia
ASSESSMENT DATE:
STAGE 2 : 27TH - 29TH DECEMBER 2011 DURATION : 13 AUDITOR DAYS
STANDARD: ROUNDTABLE ON SUSTAINABLE PALM OIL (RSPO) INCLUDING SMALLHOLDER MALAYSIA NATIONAL INTERPRETATION WORKING GROUP (MY-NIWG) : NOV 2010
SCOPE OF CERTIFICATION ASSESSMENT: BUKIT KEPAYANG PALM OIL MILL AND ITS SUPPLY BASES
TABLE OF CONTENT Page no
1.0 INTRODUCTION 1 1.1 Description of the Certification Unit 1 1.2 Description of FELDA and its Settlers Scheme 1 1.3 Organisation structure in a scheme 2 1.3.1 Settler‟s Institution 4 1.3.2 Human Capital at FELDA Bukit Kepayang Palm Oil Mill Complex Certification 4 Unit (FBKCU) 1.3.3 Facilities provided in a scheme 5 1.4 Workforce composition 5 1.5 Time Bound Plan for Other Management Units 6 1.6 Location of Mill and Supply Base 6 1.7 Description of the Supply Base 7 1.8 Other Management System Certification Held 9 1.9 Organizational Information/Contact Person 9 1.10 Approximate FFB Tonnages Offered for Certification 9
2.0 ASSESSMENT PROCESS 10 2.1 Assessment Methodology (Program, Site Visits) 10 2.2 Date of Next Surveillance Visit 10 2.3 Assessment Team 11 2.4 Stakeholder Consultations 14
3.0 ASSESSMENT FINDINGS 14 4.0 COMMENTS FROM STAKEHOLDERS 80 5.0 ASSESSMENT RECOMMENDATION 80 6.0 CERTIFIED ORGANIZATION‟S ACKNOWLEDGEMENT OF INTERNAL 81 RESPONSIBILITY AND FORMAL SIGN-OFF OF ASSESSMENT FINDINGS
List of Tables
Table 1 Total and Composition of Workers in the Certification Unit 5 Table 2 Coordinate of Bukit Kepayang CU 6 Table 3 Average Annual FFB Contribution by Each Schemes 7 Table 4 Year of Establishment of Schemes and Area Planted with Oil Palm 8 Table 5a Felda Plantation Terapai 3 8 Table 5b Ladang Bukit Kepayang 8 Table 5c Ladang Purun 8 Table 5d Ladang Mayam 9 Table 6 Approximate FFB Tonnages Claim for certification 9
List of Attachments
Attachment 1a Felda Scheme in Peninsular Malaysia 82 Attachment 1b Location map for Felda Bukit Kepayang Certification Unit 83 Attachment 1c Ladang Felda Terapai 3 84 Attachment 1d Felda Purun 85 Attachment 1e Felda Mayam 86 Attachment 1f Ladang Felda Bukit Kepayang 87 Attachment 2 Assessment programme 88 Attachment 3 List and Comment from Stakeholders 98 Attachment 4 Non-Conformity Report 104 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 Committee) 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 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 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
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, Bukit Kepayang Palm Oil Mill Complex (FBKCU) was 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 FBKCU is located within the state of Pahang. The assessed CU comprised of the following palm oil mill and oil palm supply bases:
1. FELDA Palm Industries, Bukit Kepayang Palm Oil Mill 2. FELDA Plantation Terapai 3, d/a FELDA Mayam, 28300 Triang, Pahang 3. FELDA Bukit Kepayang, Pejabat FELDA Bukit Kepayang, 28200 Bera, Pahang 4. FELDA Mayam, Pejabat FELDA Mayam, 28200 Triang, Pahang 5. FELDA Purun, Pejabat FELDA Purun, 28300 Triang, Pahang
FELDA Bukit Kepayang POM commenced its operations in 1975 with a processing capacity of 45mt Fresh Fruit Bunches (FFB) per hour. Although Bukit Kepayang POM received and processed third party FFB this assessment did not include the third party FFB suppliers.
The smallholder schemes three at this CU began development in phases from 1967-1972. They are FELDA Bukit Kepayang, FELDA Purun and FELDA Mayam 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 is one plantation like estate, that is, FELDA Terapai 3 developed on 1987 and 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). .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. Unlike the smallholder schemes the estate is solely managed by a Plantation Manager of FPSB
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.
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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 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 (1700 – 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 FBKCU each settler is assigned to a particular settlement, and is given 10 acres (4.0 ha.) of land to cultivate oil palms. All settlers here and the FELDA Terapai 3 plantation started their plot by planting with oil palm trees as their first crop and continue to do so for replanting. .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.
Although settlers are supposed to focus on agricultural activities, they are encouraged by the government to participate in non-farm activities, such as entrepreneurship in SAWARI Program (food and craft industry) Agro-based industry, Business, Services and Related activities, etc, as side income.
1.3. Organisation structure in a scheme
In a settlers‟ scheme, as evident at FBKCU the management of the scheme is based on the structure as shown in Figure 1.
There are two committees in a scheme, one representing FELDA, referred to as Management Committee and the other representing the settlers, known as Settler Committee.
The Scheme Manager besides being responsible to coordinate and manage all aspects in a scheme in an estate like manner is also responsible to the Regional General Manager (RGM), FELDA Jaya Timur Mempaga, Karak, Pahang in ensuring that his scheme is secure with settlers, their dependant get adequate income, and ultimately FELDA fulfill their social, educational and economic obligations/needs.
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Figure 1: Organisation structure in a scheme
The RGM is tasked to oversee the diligent and prudent management of the operations of these schemes and estate in order to meet the Government objectives as described in Section 1.2 above. He is responsible to the Deputy Director General (Plantations and Farming), Headoffice, who in turn reports to the Managing Direct and subsequently upwards to the Board of Directors.
The settlers‟ obligation is to farm their land in accordance to Good Agricultural Practices determined by the Scheme Manager. The Manager together with his Field Supervisors will oversee that the settlers conform to these practices by making daily field visits. The duties of office staff are to monitor the implementation of all activities in a scheme and maintain certain records of implementation.
The binding contract between a settler and FELDA is an agreement tying both parties for a CoC (Consolidated Annual Charges).
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1.3.1 Settler’s Institution Leadership and involvement of settler‟s in scheme management is shown in Figure 2 and are implemented through:
Block Management Scheme Development Committee (Jawatankuasa Kemajuan dan Keselamatan Rancangan - JKKR) JKKR Coalition Settler's Consultancy Committee (Jawatankuasa Perunding Peneroka - JKPP) Women Association Movement (Gerakan Perkumpulan Wanita – GPW)
All of these Settler's Bodies play major roles toward Settler's Institution development.
National Level
Regional Level
Scheme Level
Block Level Block Level Block Level
Figure 2 : Settler Participation in Management
JKKR Coalition is the supreme council for settlers at the Regional level aimed to unite ideas, efforts and energy towards improving production, farm development and formation of settler's family well being. Settler's top involvement and participation in the management and administration of the scheme is through Settler‟s Consultancy Committee, (JKPP).
JKPP is a supreme council where committee members consisted of FELDA's top management and Heads of Male/Female Settlers as well as Youth leaders. JKPP becomes the relation and consultation body between Head of Settlers and FELDA's management. Other roles of JKPP are to study, check, consider and take resolutions of policies concerning settlers.
1.3.2 Human Capital at FELDA Bukit Kepayang Palm Oil Mill Complex Certification Unit (FBKCU)
Number of oil palm settlers at FBKCU are 1592. They comprised of three land schemes. A land scheme, as mentioned above, normally would involve between 400 – 600 smallholders and the scheme is divided into blocks. Each block typically consists of 20 settler families. They among themselves elect Block Leaders and each block is represented by 2 Block Leaders. The leaders co-ordinate activities within their group members.
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Collectively, the settlers through their committee can raise issues of concerns to the Management Committee who via the mandate vested in them would resolve the issues amicably. If it cannot be resolved at the Scheme Level, it can be escalated to the Regional and National Level as described above under Settler‟s Institution.
There are also local stakeholders in a scheme. Local stakeholders are organizations/groups involved with the settler community / management such as Gerakan Perkumpulan Wanita and Majlis Belia (Youth Council).
In the FELDA schemes assessed, besides the Scheme Manager there usually is between 8 -15 other staff comprising of Field Supervisors, office clerks and driver.
1.3.3 Facilities provided in a scheme
Through site visits, the assessors noted the presence of the following infrastructure in all schemes assessed. It included mosque, primary school, religious school, staff quarters, shops, cooperative garage and motor vehicle workshop, scheme/plantation administration office, fertilizer store and community hall.
1.4 Workforce composition
The total and composition of the workforce at the FBKCU assessed is as shown in Table 1.
Table 1: Total and Composition of Workers in the Certification Unit as of Dec 2011
Operating Unit Local Foreign Sub-Total Bukit Kepayang POM 77 - 77
FELDA Bukit Kepayang 9 30 39 FELDA Mayam 11 50 61
FELDA Purun 17 67 84 FELDA Plantations 12 184 196 Terapai 3 Grand Total 126 331 457
Foreign workers account for about 72.4% of the CU‟s total workforce. However, the percentage of local workers at the mill is 100%.
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1.5 Time Bound Plan for Other Management Units and Justification
FELDA manages the smallholder schemes, owns oil palm plantations and operates 70 palm oil mills throughout Malaysia. As a member of RSPO, FELDA is committed to full compliance with the RSPO's Principles and Criteria (P&C) in all its operations in Malaysia. As of to date, FELDA have attained RSPO certification in two mill complexes in Jengka, Pahang and have established a challenging time bound plan, as shown in Attachment 1, to certify all of its estates and mills by the year ending 2017. FELDA have been on schedule with the time bound plan for the certification of all the CUs. This FBKCU is the latest one to be assessed for certification.
1.6 Location of Mill and Supply Base
The FBKCU covers one palm oil mill and four oil palm schemes, all in the state of Pahang. The locations of the mill and schemes are shown in Table 2.
Table 2: Coordinates of Bukit Kepayang CU (Mill and Estates)
Post Code, District, Mill / Scheme *Latitude *Longitude State
FELDA Palm Industries, 28300 Triang, 3 20‟ 46.72” N 102 35‟ 50,55” E Bukit Kepayang Palm Oil Mill, Pahang
FELDA Plantation Terapai 3, 28300 Triang, 3 25‟ 51.98” N 102 46‟ 53.65” E c/o FELDA Mayam Pahang FELDA Bukit Kepayang, 28300 Triang, Pejabat FELDA Bukit 3 20‟ 20.01” N 102 36‟ 34.58” E Pahang Kepayang FELDA Purun, Pejabat 28300 Triang, 3 22‟ 22.62” N 102 38‟ 0.03” E FELDA Purun Pahang FELDA Mayam, 28200 Bera, Pahang 3 21‟ 55.10” N 102 37‟ 38.39” E Pejabat FELDA Mayam
* Coordinate readings were taken at the respective scheme administrative office
This CU is unique (a) as being bordered by two forest reserves ie Chini Forest Reserve and Papai Forest Reserve. With the exception of FELDA Terapai 3; all schemes are adjoining to each other. The FELDA Terapai 3, the most northerly among the land schemes is bordered to the east by FELDA Terapai 1 (not part of this Certification Unit), to the north by Papai Forest Reserve, to the west and south by Chini Forest Reserve. The Chini Forest Reserve then continues to run separating FELDA Terapai 3 to its north and FELDA Purun to its south. It carries on to run to the east of FELDA Purun and towards neighbouring FELDA Mayam, in its north and east direction. In the north-northeast tip of FELDA Mayam is a small village (Kg Durian Kuning) sandwiched between FELDA Mayam and the Chini Forest Reserve
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The western border of FELDA Purun is FELCRA Bohor Baru and to the south is FEDLA Bukit Kepayang. [FELCRA - Federal Land Consolidation and Rehabilitation Authority, established in 1966, is charged to develop the rural sector by helping its community to participate in national economic activities, thus improving their standard of living]. The Bukit Kepayang Palm Oil Mill is in FELDA Bukit Kepayang estate.
Adjoining FELDA Bukit Kepayang on its east is FELDA Mayam and in the southerly direction of these schemes are other FELDA land schemes (not part of this Certification Unit), that is, FELDA Tementi and FELDA Kumai respectively. Immediately bordering the west of FELDA Bukit Kepayang is a village, Kg. Bukit Rok .
The location map of the CU is shown as in Attachment 2.
1.7 Description of the Supply Base
All the four estates had been supplying FFBs to the Bukit Kepayang POM. Apart from these estates, there were five outside crop suppliers which had been regularly sending their FFB to the FELDA Bukit Kepayang POM. With the exception of RISDA Plantations Sdn Bhd, the rest are oil palm FFB traders. The average annual FFB contribution from each estate / scheme to the Bukit Kepayang POM for 2011 is summarised in Table 3.
There are no plans to expand the land holdings in Peninsular Malaysia and therefore Principle 7 is not applicable to this assessment.
Table 3: Average Annual (Jan 1st 2011 – 31st December 2011) FFB Contribution by Each Scheme to Bukit Kepayang Palm Oil Mill
FFB Production Land Scheme Tonnes Percentage FELDA Plantation Terapai 3, 44088.06 20.82
FELDA Bukit Kepayang 13,235.16 6.25
FELDA Purun, 45,131.63 21.32
FELDA Mayam 39,383.45 18.60
Outgrowers crop 69,894.37 33.01
Total 211.732.67 100.00
Average CPO production from Bukit Kepayang Palm Oil Mill for year 2010 and 2011 is 47302 tonnnes
Table 4 shows the details of the year of establishment of the estates, year switched to oil palm and their respective total land and area planted with oil palm, while Tables 5a to 5d show the percentage of planted area in each estate by year of planting and the planting cycle.
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Table 4: Year of Establishment of Estates and Area Planted with Oil Palm
Year of Year started/ Total Area Planted Area Operating Unit Establishment switched to (ha) (ha)
oil palm FELDA Plantation 1987 1987 2751.73 2314.55 Terapai 3 FELDA Bukit Kepayang 1967 1967 2086.66 2086.66 FELDA Purun 1971 1971 3007.60 2948.92 FELDA Mayam 1970 1970 2318.45 2318.45 Total 10164.449 9668.58
Table 5a: FELDA Plantation Terapai 3
Plot Year of Planting Cycle Planted Area (ha) Percentage of Planting Planted Area PM92A 1992 1st Generation 412.96 17.84
PM98B 1994 1st Generation 1076.19 46.50
PM98C 1994 1st Generation 825.4 35.66
Total 2751.73 100.00
Table 5b: Ladang Bukit Kepayang
Plot Year of Planting Cycle Planted Area (ha) Percentage of Planting Planted Area PKT1 1998 2nd Generation 1294.31 62.03
PKT2 1998 2nd Generation 792.35 37.97
Total 2086.66 100.00
Table 5c: Ladang Purun
Year of Planting Cycle Planted Area (ha) Percentage of Planting Planted Area Plot PKT1 2003 2nd Generation 2251.11 76.34
PKT2 2004 2nd Generation 697.81 23.66 Total 2948.92 100.00
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Table 5d: Ladang Mayam
Plot Year of Planting Cycle Planted Area (ha) Percentage of Planting Planted Area 01 2001 2nd Generation 1192.85 51.45
02 2003 2nd Generation 847.80 36.57
03 2007 2nd Generation 277.80 11.98 Total 2318.45 100.00
1.8 Other Management System Certification Held
All the four FELDA land schemes except for the FELDA Palm Industries Bukit Kepayang Palm Oil Mill, do not hold any form of third-party certification for any of the internationally recognized management systems. It was noted that Bukit Kepayang Palm Oil Mill is certified to ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 and has completed the annual surveillance audit. The certificates of these schemes will be expiring on 4 March 2015 respectively.
1.9 Organizational Information/Contact Person
Name :.K. Illangovan Designation : General manager Address : FELDA Agricultural Services Sdn Bhd Tingkat 7, Balai FELDA, Jalan Gurney 1, 54000 Kuala Lumpur, Malaysia. Telephone : +03-2698 7772 Fax : +03-2693 0018 e-mail : [email protected]
1.10 Approximate FFB Tonnages Offered for Certification
The approximate tonnage of CPO and PK produced per year, as well as the tonnage claimed for certification, are as shown in Table 6 as follows:
Table 6: Approximate CPO and PK tonnage Claimed for Certification in 2011
Tonnage Claimed for Certification (MT) Certification Unit CPO PK FELDA Bukit Kepayang Palm Oil Mill 34175 8485 Complex Certification Unit
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2.0 ASSESSMENT PROCESS
2.1 Assessment Methodology (Program, Site Visits)
The assessment for certification was carried out in conformity with the procedures as laid down in SIRIM QAS Procedure Manual. During the assessment qualified SIRIM QAS assessors used the RSPO:MYNI November 2010 standard and recorded their findings.
It was done in two stages, namely Stage 1 and Stage 2. The Stage 1 assessment was conducted to determine the adequacy of the established documentation in addressing the requirements of the certification standard, the RSPO MYNI November 2010. The Stage 1 assessment was conducted on 27th – 28th October 2011. There were seventeen (17) issues of concerns raised and FBKCU had taken the necessary actions to rectify the issues. The assessor team had verified all the issues during the Stage 2 assessment and they were acceptable.
The Stage 2 assessment was conducted from the 27th-29th December 2011. The main objective of the Stage 2 assessment was to verify the CU‟s conformance to the requirements of certification standard, the RSPO MYNI (including smallholder November 2010). The planning for the Stage 2 assessment was guided according to the RSPO Certification Systems Document. The Stage 2 assessment was not based on the sampling formula of 0.8√y to determine the number of schemes to be audited as it was noted that each supplying scheme selected has its own issues related to the requirements of the RSPO MYNI . Based on the findings from Stage 1, the assessment team decided that a total of four schemes will be assessed, namely one(1) from FELDA Plantations Sdn Bhd. and three (3) from FELDA smallholder schemes.
The assessment was conducted by visiting the fields, HCV habitats, aboriginal villages, settlers‟ houses, government clinics, workers quarters, shops, chemical and waste storage areas, landfill and other workplaces. Interviews were held with the CU‟s and the management of its FFB produce, employees, contractors and other relevant stakeholders. In addition, related records and other documentation were inspected.
Details of the actual assessment programme are given in Attachment 2.
2.2 Date of Next Surveillance Visit
The first surveillance audit will be conducted around twelve months from the date of issuance of the certificate.
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2.3 Assessment Team
Member of the Role/area of RSPO Qualifications Assessment Team requirements Collected over 370 days of auditing experience in OHSAS 18001 and MS 1722 OHSMS and RSPO (46 days for palm oil milling & 6 days for oil palm plantation). CIMAH Competent Person with Malaysian Department of Occupational Safety and Health (DOSH) since 1997. Occupational Safety and Health Trainer at INSTEP Petronas Lead Assessor / Successfully completed RSPO Lead Occupational Health Assessor Course – 2008. Mahzan Munap and Safety, Successfully completed Lead Assessor Environment & Course for OHSAS 18001-2000. related legal issues Successfully completed IRCA accredited Lead Assessor training for ISO 9001- 2006 Successfully completed RABQSA accredited Lead Assessor training for ISO 14001-2008 MBA, Ohio University. B.Sc. Petroleum Engineering, University of Missouri, USA.
Member of MYNI-WG. Thirty five years experience in plantation management covering rubber and oil palm. Attended a training on RSPO P & C and certification requirements in November 2009 10 days auditing experience in RSPO P&C Assessor / Good Hj. Abdul Aziz Bin Plantation Advisor to Farmers‟ Agricultural Practices Abu Bakar Association, Perak. (GAP) and workers
issues Technical Advisor to Bio-Industry Solution Sdn. Bhd. Involved in feasibility study of palm oil development of 20,000 ha in Pekan Baru, Riau Indonesia. Head of Special Project (M) Kumpulan Guthrie Bhd.- to conduct independent assessment on GAP and estates cost management. President Director of Minamas MSC/RSPO/DOC/06-02 Issue 1 Rev. 0 Page 11 of 110
Plantation, Kumpulan Guthrie, Indonesia. – 2005 Official retirement. Director of Management Information Services (MIS) & Knowledge Management of Kumpulan Guthrie Bhd covering Malaysia and Indonesia plantations. Plantation Advisor and Quality Assurance, Kumpulan Guthrie Bhd. Estate Manager, Kumpulan Guthrie Bhd. Plantation Advisor, Sime Darby Plantation Sdn. Bhd. Management Development Programme (MDP), Asian Institute of Management (AIM), Philippine. Diploma in Agriculture, Universiti Pertanian Malaysia.
8 days of auditing experience in RSPO. Over 50 days of auditing experience FSC and forest management certifications under the MTCS Successfully completed EARA approved Lead Assessor training for ISO 14001 in 2009 Attended a training on FSC P&C and MC&I for FMC in December 1999 Attended Auditor Training Course on MC&I for Forest Management Assessor / Social Certification, 2009 Dr. Lim Hin Fui issues and related Attended Auditor Training Course on legal issues MC&I for Forest Management Certification (MC&I Forest Plantation), 2009 Attended a training on RSPO P&C and certification requirements in November 2010 Head of Policy and Socio-Economic Branch, Forest Research Institute Malaysia Ph. D in social sciences, Universiti Malaya
7 years experience in Forest related areas as a researcher with FRIM since 2003 32 man-days in auditing MC&I(2002) as forest auditor
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Attended Auditor Training Course on Malaysian Criteria and Indicators for Forest Management Certification [MC&I(2002)] organized by MTCC, April 2009. Khairul Najwan Assessor / HCV Attended Auditor Training Course on Ahmad Jahari habitats & ecology Malaysian Criteria and Indicators for Forest Plantation Certification [MC&I(2002)] organized by MTCC 2010. Attended a training on RSPO P & C and certification requirements in January 2011 Successfully passed EMS 14001: 2004 Lead Auditor Course, March 2009. Successfully passed OHSAS 18001: 2007 Lead Auditor Course, Feb 2009. Successfully passed QMS 9001: 2008 Lead Auditor Course, Feb 2009. B.Sc. of Forestry (Forest Management) M Sc Environmental (GIS Remote Sensing, still pursuing)
Has more than 10 years auditing to ISO 14001 for various industries including oil palm plantation, palm oil mill and oleochemical, CDM validator/ verifier and had conducted project validation and verification in renewable energy in glove industry and effluent treatment for palm oil mill Successfully completed IEMA accredited Lead Assessor training for Assessor / ISO 14001: 2004 in 2003. Siew Shuh Ping Environmental Successfully completed Lead Assessor training for ISO 9001 in 2008 Attended RSPO & Oil Palm Plantation training in 2008 M. Sc Environmental Engineering from National University if Singapore, 2002. B.Eng (Hons) Chemical Engineering Malaysia University of Technology, 1991. Has working experience as Process Engineer, Asst. Furnace Manager and Asst. Production Manager,
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2.4 Stakeholder Consultations
SIRIM QAS International Sdn Bhd (SIRIM QAS International) initiated the stakeholder consultation by announcing the invitation in the RSPO and SIRIM QAS International‟s websites on 15th November 2011. In addition, SIRIM QAS International had also sent invitations through letters to the relevant stakeholders, including government agencies and Non-Governmental Organizations (NGOs) on 15th November 2011. This was followed-up by telephone calls. .
Whenever necessary, meetings with the relevant stakeholders were arranged during the on-site assessment. Please see Principle 6.
The consultation with the government agencies had involved meetings and discussions with the relevant departments mainly to solicit information as well as verification on the CU‟s compliance with the applicable laws and regulations related to its operations.
The consultations with the NGOs were held to seek their comments mainly on the CU‟s compliance with those criteria related to the social and environmental issues.
The method of consultation with the settlers, contractors and FELDA staff were through random sampling from each group in each of the FFB supplying unit and oil mill (e.g. mill operators, harvesters, general workers and sprayers) visited. The consultations which were conducted at the CU‟s office had included solicitation of comments on issues relevant to principles 4, 5 and 6 of the RPSO MYNI.
The consultations by assessors with the local communities were held at two different venues, that is at FELDA office and the other was by visiting the two aboriginal villages during the times that were convenient to them. The intention was (a) to solicit their views on the impact of the FBKCU‟s operations on their economics and socio-cultural lives and (b) to check whether the aborigines claim any customary land within the CU.
Outcome from the stakeholders being consulted is as in Attachment 3.
3.0 ASSESSMENT FINDINGS
The findings of the assessment were highlighted and discussed during the on-site assessment. There were nine (9) nonconformity reports (NCR) raised on the FBKCU against the requirements of the RSPO MYNI. The details of the NCR and the corrective actions taken are as in Attachment 4. Evidences of the actions taken by the CU had been submitted to the assessment team. In addition, the assessment team had made eight (8) opportunities for improvement, which the CU should improve upon in complying with the requirements of the RSPO MYNI (see Attachment 5).
The detailed findings of the assessment on the CU‟s compliance with the requirements of the RPSO MYNI are as follows:
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PRINCIPLE 1: COMMITMENT TO TRANSPARENCY
Criterion 1.1 Oil palm growers and millers provide adequate information to other stakeholders on environmental, social and legal issues relevant to RSPO Criteria, in appropriate languages and forms to allow for effective participation in decision making
Indicators: 1.1.1 Records of requests and responses must be maintained. Major compliance
Specific National Guidance for Scheme Smallholders Scheme Smallholders Scheme managers should assist in ensuring compliance by their organized smallholders in providing adequate information. Scheme managers must ensure that participant are given copies of:
-chemical use (4.6) -to-date records of debts and repayments, charges and fees (6.10) s are made available the following documents:
- Health and safety plan (4.7). - Plans and impact assessments relating to environmental and social impacts (5.1, 6.1, 7.1, 7.3). - Pollution prevention plans (5.6). - Details of complaints and grievances (6.3). - Negotiation procedures (6.4). - Procedure for calculating prices, and for grading, FFB (6.10) - Continuous improvement plan (8.1) confidential
Findings:
There was procedure available on communication as evidenced in FELDA Palm Industries Sdn Bhd (FPISB) No. document: FPI/L2/QOHSE-6.0 entitlted Manual Prosedur, Komunikasi, Penglibatan dan Rundingan (Communication, Participation and Consultation). It had involved internal and external consultation.
Additionally, FELDA has a website, www.feldaholdings.com for promotion of its products. The website contained brief information about the company‟s structure, its policy and management objectives, corporate profile, vision, mission and shared values, the business they were involved in, financial and corporate social responsibility information.
FELDA had dedicated substantial resources to ensuring that every aspect of its business emulates the eight principles as laid out under Principles and Criteria for Sustainable Palm Oil which was accepted as the most complete document defining sustainable palm oil production.
With respect to RSPO, FELDA had provided adequate information on issues relevant to interested stakeholders including publishing on its website inviting all stakeholders to take part to make a positive contribution to the RSPO certification decision. FELDA had asked all stakeholders to raise any issues, both positive and negative, in written form (by mail, fax or e- MSC/RSPO/DOC/06-02 Issue 1 Rev. 0 Page 15 of 110
mail) or by attending an open stakeholder meeting at the site. It also had written to all stakeholders informing them on the availability of documents for public review.
During the assessment, it was observed that FBKCU had compiled a list of local stakeholders that may be relevant to its operation. The letters to stakeholders and the records of request were examined in the scheme inspected. A briefing for and discussion with stakeholders was held on 22nd July 2011 at Community Hall, FELDA Triang 1 as evidenced by the signed list of attendance. From the above records, it was evident that the company had committed to be transparent in its dealings with internal and external stakeholders. Please see Attachment 1 for List and comments from stakeholders.
Assessment on the implementation of the procedure showed that records of communication are maintained. Among the records sighted were correspondences with the authorities and minutes of meeting. They included:
(a) Majlis Perjumpaan Bersama Yang Berkepentingan anjuran Jawatankuasa Kerja Minyak Sawit Mapan (JKKMSM) Kompleks Wilayah Mempaga, Dewan Orang Ramai FELDA, Triang dated 22nd July 2011.
(b) Minit Mesyuarat Ketua Bahagian involving main staffs such as Mill Manager, Foreman, Supervisor, Clerks and Chargeman.
A management official at the operating unit level had been assigned to be in charge on communication and consultation with stakeholders.
At the schemes assessed, it was evident that the Scheme Managers assisted in ensuring compliance by their scheme smallholders in that the settlers were provided with adequate information. The participants were given copies of contract between FELDA and them, up-to- date records of debts and repayments, charges and fees. Others included demonstration training on the safe use of agro-chemical, information on integrated pest management, health and safety plans, social and environmental impact / aspect assessments and plans, pollution prevention programs, procedure for complaints and grievances and procedure for calculating prices, and for grading, FFB
Criterion 1.2 Management documents are publicly available, except where this is prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes. This concerns management documents relating to environmental, social and legal issues that are relevant to compliance with RSPO Criteria. Documents that must be publicly available include, but are not necessarily limited to:-
1.2.1 Land titles / user rights (C 2.2) 1.2.2 Safety and health plan (C 4.7) 1.2.3 Plans and impact assessments relating to environmental and social impacts (C 5.1, 6.1, 7.1, 7.3) 1.2.4 Pollution prevention plans (C 5.6) 1.2.5 Details of complaints and grievances (C 6.3) 1.2.6 Negotiation procedures (C 6.4) 1.2.7 Continuous improvement plan (C 8.1)
Guidance: Examples of commercially confidential information include financial data such as costs and income, and details relating to customers and/or suppliers. Data that affects personal privacy should also be confidential.
Examples of information where disclosure could result in potential negative environmental or social outcomes include MSC/RSPO/DOC/06-02 Issue 1 Rev. 0 Page 16 of 110
information on sites of rare species where disclosure could increase the risk of hunting or capture for trade, or sacred sites, which a community wishes to maintain as private.
Specific National Guidance for Scheme Smallholders Scheme Smallholders Scheme managers should ensure that appropriate systems are in place for their organized smallholders to comply with the above. This may include providing information that covers.
-use rights; (certificate)
gement Plans
Findings:
The relevant management documents as required by this Criterion were made publicly available upon request. Each scheme had maintained record of requests made by stakeholders and this record was presented during the assessment. In addition, all the policies of the company had been clearly displayed on notice boards (see Photograph 1).
Photo 1: FELDA Policies and Information on Notice Board, at FELDA Terapai 3
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At all estates and mill, a dedicated RSPO Documentation area is made available. A Document Controller is assigned to be in-charge of the document, ensure its distribution is current and retrieve obsolete document
On-site assessment showed that all settlers (100%) who have fully settled their loans with FELDA, as spelt out in their Consolidated Annual Charges (CoC), have already obtained their land titles for the smallholdings involved.
The schemes visited had documented their (a) health and safety plan, (b) plans of social impact assessment, and (c) pollution plan, (d) procedure for calculating prices, and for grading and they are made available for settlers viewing including some being displayed at notice board. Also, Standard Operation Procedures (SOPs) were also available. Among those sighted included negotiation procedures, complaints and grievances, and information on HCV and actions taken to manage them including dissemination of information to settlers and the public at large.
PRINCIPLE 2: COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS
Criterion 2.1 There is compliance with all applicable local, national and ratified international laws and regulations
Indicators: 2.1.1 Evidence of compliance with legal requirements. Major compliance
2.1.2 A documented system, which includes written information on legal requirements. Minor compliance
2.1.3 A mechanism for ensuring that they are implemented. Minor compliance
2.1.4 A system for tracking any changes in the law. Minor compliance
Guidance: 1. Lists down all applicable laws including international laws and conventions ratified by the Malaysian government. 2. Identify the person(s) responsible to monitor this compliance. 3. Display applicable licenses and permits. 4. Unit responsible to monitor these will also be responsible to track and update changes.
Specific National Guidance for Scheme Smallholders Scheme Smallholders Scheme managers should ensure that their organized smallholders are aware of and comply with relevant legal requirements.
These would require provision of information regarding relevant legal requirements to the participants or their appointed representatives.
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Findings:
Each scheme of the FBKCU visited had followed procedure for documenting, checking and assessment of legal compliance with applicable laws including international laws and conventions ratified by the Malaysian Government relevant to its operations. List of laws/regulations and their summaries related to RSPO were available.
The identified laws applicable to their operations were recorded in a legal register and evaluated for compliance annually. Among the laws which had been identified and recorded in the register were Pesticides Act 1974 and Regulations, Environmental Quality Act and Regulations, 1974, Factories and Machinery Act and Regulations, 1967, Occupational Safety and Health Act 1994, Employment Act 1955, Immigrations Act 1959/1963, Workers‟ Minimum Standards of Housing and Amenities Act, 1990 and WHO Type 1A and 1B or Stockholm & Rotterdam Conventions. Copies of the Aboriginal Peoples Act 1954 were seen available at FELDA Mayam and FELDA Bukit Kepayang.
The Mill Manager and Scheme Managers interviewed showed understanding on the applicable legal requirements. Likewise, staff and smallholders interviewed showed their awareness, the need of them to comply with relevant legal requirements and the consequence for non- compliance.
Generally, FBKCU were in compliance with all applicable local, national and ratified international laws and regulations, for example, all foreign workers have valid Visit Pass (Temporary Employment) issued by the Department of Immigration, Malaysia; machineries requiring Certificate of Fitness were up-to-date and Competent Persons were available at the mill, as demanded by the Factories and Machinery Act 1967. However, an OFI 2.2 was raised against lapses by the estates/schemes for incomprehensive evaluation of compliance against applicable clauses and sub-clauses. .
With respect to the terms and conditions of employment, it was confirmed that the FBKCU was in compliance with the Employment Act 1955 related to the provisions of wages, paid public holidays, paid annual leave and sick leave.
Further, as required by this criterion, copies of the relevant licenses and permits were seen displayed appropriately in the offices of the schemes and mill. Inspection by the assessors found that they were still valid. Among the licenses and permits sighted displayed were those issued by the MPOB, permits to keep fertilizer and diesel oil (at FELDA Purun).
Scheme and Mill Manager had been identified to be responsible for communicating changes in laws and regulations at FELDA Mayam, Bukit Kepayang and Kilang Sawit Bukit Kepayang respectively whereas the unit responsible for tracking, monitoring and updating the changes of applicable laws and regulations was based at FELDA Headquarters, Kuala Lumpur. All changes will be passed down to the mill and plantations.
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Criterion 2.2
The right to use the land can be demonstrated, and is not legitimately contested by local communities with demonstrable rights.
Indicators: 2.2.1 Evidence of legal ownership of the land including history of land tenure. Major compliance
2.2.2 Growers must show that they comply with the terms of the land title. [This indicator is to be read with Guidance 2] Major compliance
2.2.3 Evidence that boundary stones along the perimeter adjacent to state land and other reserves are being located and visibly maintained. Minor compliance
Specific Guidance: Growers should attempt to comply with the above indicator within 15 months from date of announcement of first audit. Refer to State Land Office for examples of other reserves.
2.2.4 Where there are, or have been, disputes, proof of resolution or progress towards resolution by conflict resolution processes acceptable to all parties are implemented. Cross ref. to 2.3.3, 6.4.1 and 6.4.2. Minor compliance
Guidance: 1. For any conflict or dispute over the land, the extent of the disputed area should be mapped out in a participatory way. 2. Where there is a conflict to the condition of land use as per land title, growers must show evidence that necessary action has been taken to resolve the conflict with the relevant authorities. 3. Ensure a mechanism to solve the dispute (Refer to C 6.3 and C6.4) 4. Evidence must be demonstrated that the dispute has been resolved. 5. All operations shall cease on land planted beyond the legal boundary.
Findings:
The right to use the land can be demonstrated and not disputed as the land developed by FELDA was authorised under Section 4 of the Land (Group Settlement Area, in short GSA) Act 1960. Assessor sighted that there were clear land ownership documents for the smallholders. Land titles were available in documents such as Kanun Tanah Negara (Borang 5EK, 11BK, 11AK). More details of the land including ownership, transfer, land title, history of land tenure, etc, were available on the centralized FELDA SAP Software “Sistem Komputer Bersepadu” (SKB) under Modul Peneroka.
The settlers complied with the terms of the land titles including conditions for agricultural cultivation as stated in completed Form 5EK of Kanun Tanah Negara.
All (100%) settlers in the FBKCU had already obtained their land titles.
Besides the binding contract between the first generation Settlers and FELDA; FELDA also had developed a procedure entitled “Pewarisan” a binding ownership (transfer) contract between FELDA second generation Settler and FELDA, for example, in the case of inheritance claim by siblings of the deceased settler. The procedure used was based on Form F (Regulation 7/2) of Small Estates (Distribution) 1955 regarding Legal Division No. JKPTG/PK/06/11/0024. In this
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form, the District Land Administrator confirmed the land transfer after inventory had been made and notice of ownership transfer displayed for at least 6 months at the Bera Land District Office. Should there be a dispute on the division of land shareholding, all affected parties will be called for “Bicara Kuasa” (discussion/agreement) and they will agree among themselves on who should be their Land Administrator. The Land Administrator then distributed the net income generated by FFB sales in accordance to the established Islamic Laws and Principles “faraid”.
The spirit of the transfer of ownership contract centred around the change of name while the mechanics of management of the land continued remained the same as was in the binding contract with the original owner. The procedure and copy of the contract was sighted available at the scheme‟s office.
Evidence on the successful land transfer was documented in document Form F JKPTG/PK/06/11/0056/2011 where the land belonging to the deceased was managed by his spouse. The sharing of yield was collectively agreed and be shared among the siblings according to “faraid”. Another evidence of mutual land use was the agreement between the Orang Asli communities, namely (a) Perjanjian Persefahaman Menggunakan Jalan Pertanian Dalam Ladang Felda Mayam dated 11 October 2011 and (b) Perjanjian Persefahaman Menggunakan Jalan Pertanian Dalam Ladang Felda Bukit Kepayang dated 11 October 2011. In these agreements, Orang Asli community were allowed to continue using the existing estate roads to meet their daily needs. The community agreed not to hunt, stay, damage property and trees, pollute river and cultivate within the estate areas. This mechanism used to resolve “conflict” was confirmed during consultations with Orang Asli communities at Kg. Durian Kuning (attended by 7 adult males and 3 adult females), located outside Ladang Felda Mayam and Kg. Ibam/Rok (attended by 10 adult males and 8 females), and located outside Ladang Felda Bukit Kepayang.
There had been no conflict over the land occupied by the settlers and therefore there was no land claim from local communities, including Orang Asli, on the FELDA smallholdings assessed. More detail discussed under Criterion 2.3 of this RSPO P&C.
The audit team had noted and inspected the existence of boundary stones along the perimeter adjacent to forest reserves, for example, at boundary between FELDA Purun and Purun Forest Reserve. (See Photographs 2 and 3 below).
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Photo 2: One of the boundary stones in the background on the left bordering the Hutan Simpanan Purun next FELDA Purun
Photo 3: Same boundary stone looking from different angle showing the separation between Hutan Simpanan Purun and FELDA Purun is a plantation s road
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Criterion 2.3 Use of the land for oil palm does not diminish the legal rights, or customary rights, of other users, without their free, prior and informed consent.
Indicators: 2.3.1 Where lands are encumbered by customary rights, participatory mapping should be conducted to construct maps that show the extent of these rights. Major compliance
2.3.2 Map of appropriate scale showing extent of claims under dispute. Major compliance
2.3.3 Copies of negotiated agreements detailing process of consent (C2.2, 7.5 and 7.6). Minor compliance
Guidance: Where lands are encumbered by legal or customary rights, the grower must demonstrate that these rights are understood and are not being threatened or reduced. This criterion should be considered in conjunction with Criteria 6.4, 7.5 and 7.6.
Where customary rights areas are unclear these are best established through participatory mapping exercises involving affected and neighbouring communities.
This criterion allows for sales and negotiated agreements to compensate other users for lost benefits and/or relinquished rights. Negotiated agreements should be non-coercive and entered into voluntarily, carried out prior to new investments or operations and based on an open sharing of all relevant information in appropriate forms and languages, including assessments of impacts, proposed benefit sharing and legal arrangements.
Communities must be permitted to seek legal counsel if they so choose. Communities must be represented through institutions or representatives of their own choosing, operating transparently and in open communication with other community members.
Adequate time must be given for customary decision-making and iterative negotiations allowed for, where requested. Negotiated agreements should be binding on all parties and enforceable in the courts. Establishing certainty in land negotiations is of long-term benefit for all parties.
Specific National Guidance for Scheme Smallholders Scheme Smallholders 8 Scheme managers can show that lands acquired for participants do not diminish legal or customary rights. Where other customary lands have been taken-over, there is documentary proof of transfer of rights (eg sale) or payment of agreed compensation.
Findings:
As mentioned earlier, through Land (General Settlement Area) Act 1960, the schemes‟ smallholders and management had been given the legal right to all the land for cultivation through the title provided by the State Department of Lands and Surveys. The smallholdings were established long time ago (started in 1967) and they did not diminish the legal rights, or customary rights, of other users in the vicinity at the time of planting including those Orang Asli of Semelai community at Kg Ibam / Kg Bukit Rok located outside FELDA Bukit Kepayang and Orang Asli of Jakun community at Kg Durian Kuning located outside FELDA Mayam. The MSC/RSPO/DOC/06-02 Issue 1 Rev. 0 Page 23 of 110
communities did not claim any customary land within the FELDA smallholdings. These Orang Asli operated on Orang Asli reserved land. In general, they cultivated rubber, oil palm and fruit trees on their traditional land.
During the consultations with the Orang Asli community in the above settlements showed that their use of customary land was not threatened or reduced by FELDA areas.
It was noted that the Orang Asli communities had an agreement with FELDA on the use of access road as evidenced in
(a) Perjanjian Persefahaman Menggunakan Jalan Pertanian Dalam Ladang FELDA Mayam dated 11 October 2011.
(b) Perjanjian Persefahaman Menggunakan Jalan Pertanian Dalam Ladang FELDA Bukit Kepayang dated 11 October 2011.
These agreements and their freedom of rights to access to the FELDA roads were confirmed during consultations with Orang Asli communities at Kg. Durian Kuning (attended by 7 adult males and 3 adult females) and Kg. Ibam / Kg. Bukit Rok (attended by 10 adult males and 8 females).
Other information kept on the legal, customary rights and use of land at the assessed FELDA scheme, include:
Document on Inkuiri Nasional Berhubung Hak Tanah Adat Orang Asal is kept at Ladang FELDA Bukit Kepayang.; and
Map on the location of Orang Asli villages (outside FELDA areas) were available.
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Photo 4: Assessment consultation with Orang Asli in Kg Durian Kuning
Another consultation conducted by the auditors further proved the use of the surrounding land for oil palm by FELDA did not diminish the local communities‟ legal rights, or customary rights, including rights of other users. This was evident during consultation with an Orang Asli from Kg Tanah Merah (near to Ladang Terapai 3), the one and only owner of the land whose plot was inside FELDA Terapai 3. He confirmed that his 2.83 ha of orchard was protected and that he had the demonstrable rights to access and use it in a manner he so wish. To demarcate the boundary visibly, with his agreement FELDA had painted periphery trees red as markers, one of which as shown in the photograph 5 below.
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Photo 5: A tree surround the 2.83 ha of Orang Asli orchard was painted red to mark the boundary of the customary land.
PRINCIPLE 3: COMMITMENT TO LONG-TERM ECONOMIC AND FINANCIAL VIABILITY
Criterion 3.1 There is an implemented management plan that aims to achieve long-term economic and financial viability.
Indicators: 3.1.1 Annual budget with a minimum 2 years of projection Major compliance
Specific Guidance: Annual budget may include FFB yield/ha, OER, CPO yield/ha and cost of production that is not required to be publicly available.
3.1.2 Annual replanting programme projected for a minimum of 5 years with yearly review. Minor compliance
Guidance: Individual organization is to define its own management unit i.e. mill, estate or group as per definition on unit of certification explained in Item 4.2.3 and 4.2.4 in the RSPO Certification Systems document located at: http://www.rspo.org/RSPO_Certification_Systems.aspx
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Findings:
The budget for financial year 2012 was available at every estate and at Bukit Kepayang POM. It included capital and operating expenditures with attention given to crop projection, FFB yield trends, mill extraction rates, cost of production, cost per tonne of CPO trends financial indicators to monitor the performance of each operating unit. The cost of production was reviewed and compared against expenditure each year with projections in place for future years.
Others included the provision of allocation for Mill and Estate operations and maintenance covering upkeep of plant & machineries, housing, buildings & amenities, office equipment, land & infrastructure, agriculture equipment & vehicle. Budget for continuous improvement projects had been addressed, for example, training, occupational safety and health (changing of asbestos roofing to zinc for FELDA Purun office staff houses), environmental upkeep (reduced, reuse and recycle) and for welfare and social activities for settlers.
However, FELDA Terapai 3‟s commitment to long-term economic and financial viability could be improved to ensure maximum crop recovery (FFB yield/ha) and crop quality control as it was observed that loose oil palm fruits were not collected promptly and regularly in the field (Block 7). An OFI against criterion 3.1 had been raised.
All assessed schemes were harvesting crops from the second generation planting except for FELDA Plantation Terapai 3 which were harvesting crops from first generation. The oldest oil palm tree at FELDA TErapai 3 is 20 years old while the second generation planting the oldest palm is 14 years old (at FELDA Bukit Kepayang) and no replanting programme was expected to be carried out in the near future.
PRINCIPLE 4: USE OF APPROPRIATE BEST PRACTICES BY GROWERS AND MILLERS
Criterion 4.1 Operating procedures are appropriately documented and consistently implemented and monitored.
Indicators: 4.1.1 Documented Standard Operating Procedures (SOP) for estates and mills Major compliance
4.1.2 Records of monitoring and the actions taken are maintained and kept for a minimum of 12 months. Minor compliance
Specific National Guidance for Scheme Smallholders Scheme Smallholders Working practices should be consistent with documented procedures that are adopted. Such documents should be explained to the participants and made available for reference.
For smallholders, working practices will have to be consistent with documented procedures provided by customers or related government agencies and organizations.
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Findings
The company had generic Manual and SOP‟s, which were up to date and which covered all plantation and mill activities from seedling to the despatch of CPO and PK. They were sighted as shown in Photo 6 to 9 below. At the estates assessed, they (FELDA Plantations, FELDA Technoplant and FELDA Smallholder Scheme) used the generic FELDA Operations Manual for Sustainable Oil Palm Plantations and Safety, Health and Environmental Manual as reference for all operations managed by them while the FELDA Palm Industries Bukit Kepayang Palm Oil Mill used FELDA QOSHE (Quality Occupational Safety, Health and Environmental Manual) and SOP. The manual and procedures were available to all levels of Executives in the plantations and mill and the implementation of these documents were verified.
Photo 6 and 7: (L-R) FELDA Operations Manual for Sustainable Oil Palm Plantation and Safety, Health and Environmental Manual
Photo 8 and 9: (L-R) One example of FELDA Plantation SOP from Ladang Terapai 3. FELDA Palm Oil Mill QOSHE Manual
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Through random interviews held with the staff and workers, the outcome revealed that they generally understood the requirements of these documents and their level of understanding on the contents of the Manual and SOP was found acceptable. One of the many examples was in field interviews in which ripeness standard and chemicals usage had been properly understood by the field workers. The checking on crop quality was done by the Quality Supervisor.
However, for most parts there were proper records of monitoring and actions taken that were carried out for all best practices. At the mill, records of mill operations and maintenance (SOPs, checklist, equipment history) were maintained as per QOSHE Manual, specifically to the requirement of element Control of records to ensure the implementation and practicality.
Monthly progress monitoring for all activities were made available during the visit. For example, these reports had also been displayed on the office‟s notice boards.(see Photo 9) Records of monitoring for field related activities were also captured in the „Programme Sheets‟ such as for manuring and spraying programmes, Other records maintained include agrochemicals used, rat census/treatment, application for and issuance of personnel protective equipment (PPE) that were evident in the cost books, store requisition and issue sheets and related files.
Photo 10: Monthly report (October 2011) on FFB yield by Group and “Peringkat”
It was noted that the Scheme Management had explained to smallholders who worked or managed their own plot on the need for them to comply with established documented procedures and homogenous with other FPSB and FTP practice and the benefits to be gained in adopting the FELDA Technoplant Good Agricultural Practices . This document had been made available for the participants to refer.
Herbicides spraying, slashing, FFB harvesting and frond arrangements were the field activities performed by these smallholders whereas manuring were undertaken by FELDA Technoplant. Each Block Leader (see above at Section 1.3.2. Human Capital at FELDA) gathered information from members on agrochemicals used and those FFB harvested. The information was then reported, recorded and kept at their respective FELDA scheme office. MSC/RSPO/DOC/06-02 Issue 1 Rev. 0 Page 29 of 110
At the mill, records of monitoring include PPE issuance, Permit to Work issued, QOSHE Committee meeting, Chemical Health Risk Assessment (CHRA), Accident Investigation, Non- conformity, Corrective Action and Preventive Action, Health Surveillance, Audiometric test, DOSH Log book, Stack environmental air monitoring and others.
Generally, monitoring reports at estates and mill were well kept and maintained for a minimum of 12 months while others were as required by the law up to thirty years.
Criterion 4.2 Practices maintain soil fertility at, or where possible improve soil fertility to, a level that ensures optimal and sustained yield.
MY-NIWG recommends that the indicators in criterion 4.2 and 4.3 are linked
4.2.1 Monitoring Monitoring of fertilizer inputs through annual fertilizer recommendations. Minor compliance
4.2.2 Evidence of periodic tissue and soil sampling to monitor changes in nutrient status. Minor compliance
4.2.3 Monitor the area on which EFB, POME and zero-burn replanting is applied. Minor compliance
Guidance: Long-term fertility depends on maintaining the structure, organic matter content, nutrient status and microbiological health of the soil. Managers should ensure that best agricultural practice is followed. Nutrient efficiency must take account of the age of plantations and soil conditions.
Specific National Guidance for Scheme Smallholders Scheme Smallholders Scheme Managers are able to demonstrate that the participants have an understanding of the techniques required to maintain soil fertility and that they are being implemented.
Evidence of implementation can be in the form of:
1. Records of fertilizer application 2. Records of EFB or POME application (if practiced)
Findings:
The company had maintained the practice of soil fertility but had not made available soil map of each plantation to the assessment team. An annual agronomic foliar analysis undertaken by FELDA Agricultural Services Sdn Bhd (FASSB) had been conducted in all the estates and the results formed the basis to ascertain soil fertility and recommendation for the application of fertilizer. All fertilizer regimes were relatively well planned; implemented and recorded. The assessor had sighted records on the movement of fertilizer and confirmed that they had been kept current.
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Photo 11: Distribution of Empty Fruit Bunches as Fertilizers in the Field
Empty fruit bunches (EFBs) had been distributed and used as organic fertilizer for the oil palm trees at FELDA Purun. This was applied mainly on lateritic areas and along roadsides (3-5 rows from both sides of the road). See Photo 11. However, at FELDA Terapai 3, the programme for EFB application had just been approved and had yet to be applied in the field.
Although EFB was used for soil fertility improvement (at Purun, Block FELDA 1D) the application in a systematic manner as recommended by the Agronomist could be improved. An OFI had been given to this indicator 4.2.3.
Criterion 4.3 Practices minimise and control erosion and degradation of soils.
Indicators: 4.3.1 Documented evidence of practices minimizing soil erosion and degradation (including maps). Minor compliance
Specific Guidance: Replanting on sloping land must be in compliance with MSGAP Part 2: OP (4.4.2.2)
For Sarawak, steep slopes are considered high risk erosion areas and cannot undergo replanting unless specified in the EIA report and approved by the Natural Resources and Environment Board (NREB).
For Sabah, slopes 25 degree and steeper are considered high risk erosion areas and cannot undergo replanting unless specified in the EIA report [Environment Protection (Prescribed Activities)(Environment Impact Assessment) Order 2005] and approved by the Environmental Protection Department (EPD).
Slope determination methodology (slope analysis) should be based on average slope using topographic maps or topographical surveys.
4.3.2 Avoid or minimize bare or exposed soil within estates. Minor compliance
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Specific Guidance: Appropriate conservation practices should be adopted.
4.3.3 Presence of road maintenance programme. Minor compliance
4.3.4 Subsidence of peat soils should be minimised through an effective and documented water management programme. Minor compliance
Specific Guidance: Maintaining water table at a mean of 60 cm (within a range of 50-75cm) below ground surface through a network of weirs, sandbags, etc. in fields and watergates at the discharge points of main drains.
4.3.5 Best management practices should be in place for other fragile and problem soils (e.g. sandy, low organic matter and acid sulphate soils). Minor compliance
Guidance: Techniques that minimise soil erosion are well-known and should be adopted, wherever appropriate. These may include practices such as:
1. Expediting establishment of ground cover upon completion of land preparation for new replant. 2. Maximizing palm biomass retention/ recycling. 3. Maintaining good non-competitive ground covers in mature areas. 4. Encouraging the establishment/regeneration of non-competitive vegetation to avoid bare ground. 5. Construction of conservation terraces for slopes >15o 6. Advocating proper frond heap stacking such as contour/L-shaped stacking. for straight line planting and stacking along the terrace edges for terrace planting. 7. Appropriate road design and regular maintenance. 8. Diversion of water runoff from the field roads into terraces or silt pits. 9. Construction of stop bunds to retain water within the terrace. 10. Maintaining and restoring riparian areas in order to minimize erosion of stream and river banks.
Specific National Guidance for Scheme Smallholders Scheme Smallholders Scheme managers should be able to demonstrate that their participants have an understanding of the techniques adopted to manage their soils and that they are being implemented.
Findings:
During field visit it was observed that FBKCU had yet to improve practices to minimize and control erosion and degradation of soils. There were sparse documented evidence of practices minimizing soil erosion and degradation other than protection by natural vegetation.
Well-known techniques, such as (a) construction of conservation terraces for slopes >15o, that minimize soil erosion (b) avoidance or minimize bare or exposed soil within estates and (c) appropriate road design and regular maintenance, were not adopted.
Slope classification maps for the estates showing steep slopes above 25 degrees were not made available to the assessment team. It was observed that terraces had not been constructed in most sloping areas with regular bunds at an interval of 20 meters to retain water and act as erosion control measure.
The assessment team had inspected at FELDA Terapai 3, Block 6 and observed that spraying of bracken spp on slope was carried out and there was evidence of landslides/soil erosion (see Photo 12). At FELDA Teratai 3, Block 23 and at FELDA Purun blanket spraying in some blocks MSC/RSPO/DOC/06-02 Issue 1 Rev. 0 Page 32 of 110
had been seen (see Photo 13). A non-conformity report against this Indicator 4.3.1 was therefore raised. In other areas, circle weeding had been implemented while ground cover of soft vegetation growth had been a standard requirement with integration of livestock.
Photo 12: Excessive spraying on slope. Photo 13: Blanket spraying
Other evidences, at FELDA Purun, Block 18 the slope was more than 20° and found neither with planting terraces nor conservation terraces or planting platform (see Photo14) whereas at FELDA Terapai 3.not only were the palms planted on steep slope and without conservation terraces, they were hardly any soft vegetation and soil erosion could also be seen. See Photo15. Planting of „Vertiver‟ grass was not initiated to control erosion and land slide on steep slopes. Stacking of fronds in matured areas were not diagonally placed along the slope to prevent erosion.(see Photo 16) and silt pits/traps were not advocated.
>20
Photo 14: slope > 20° - no terracing Photo 15: Absent of planting terraces or conservation terrace at FELDA Terapai 3
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Photo 16 : Frond stacking along gradient of Photo 17: muddy roads roadside without slope drains
Further, at FELDA Terapai 3 and FELDA Bukit Kepayang it was observed that harvesting roads were below satisfactory condition and had not been satisfactorily constructed with roadside drains to address water runoff (see Photo 17). Rain water was observed stagnated on the roads despite our sighting on the presence of road maintenance programme (machine utilization programme) for each of the estate.
There was no peat soil area in the FBKCU and this was confirmed by the Schemes and Plantation Managers involved. Therefore, Indicators 4.3.4 are not applicable.
Criterion 4.4 Practices maintain the quality and availability of surface and ground water.
Indicators: 4.4.1 Protection of water courses and wetlands, including maintaining and restoring appropriate riparian buffer zones at or before replanting along all natural waterways within the estate. Major compliance
Specific Guidance: Riparian buffer zones: Reference to be made to relevant national regulations or guidelines from state authorities e.g. Department of Irrigation and Drainage (DID), whichever is more stringent.
4.4.2 No construction of bunds/weirs/dams across the main rivers or waterways passing through an estate. Major compliance
4.4.3 Outgoing water into main natural waterways should be monitored at a frequency that reflects the estates and mills current activities which may have negative impacts (Cross reference to C 5.1 and 8.1). Major compliance
4.4.4 Monitoring rainfall data for proper water management. Minor compliance
4.4.5 Monitoring of water usage in mills (tonnage water use/tonne FFB processed). Minor compliance
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Data trended where possible over 3 years to look into resource utilization
4.4.6 Water drainage into protected areas is avoided wherever possible. Appropriate mitigating measures will be implemented following consultation with relevant stakeholders. Minor compliance
4.4.7 Evidence of water management plans. Minor compliance
Specific National Guidance for Scheme Smallholders Scheme Smallholder Scheme Managers should provide appropriate training for their participants on the importance of maintaining the quality and availability of surface and ground water.
Findings:
In the field assessed, there were evidences of implementation on the practices to maintain the quality and availability of surface and ground waters. For example, riparian belts along the major rivers in all the estates were in compliance with the local regulations. They had been demarcated and erected with appropriate signage. A map of the riparian buffer belts was also made available to the assessment team.
There was no construction of bunds/weirs/dams seen across the main rivers or waterways in the estates visited. Likewise, all streams and drainage sighted were without any obstruction.
Water sampling had been conducted along the main rivers in all the estates, a result of the Environmental Management Plan developed following the Aspect-Impact assessment. For every scheme of the CU, the water quality index (WQI) for a sampled stream was monitored at the point of entrance (or inlet) to the scheme and at the point where the streams flow out (outlet) of the scheme. The samples were sent to FASSB for analysis except for FELDA Terapai 3 that also sent to Health Distarict office, Pekan. The results of the quality of the water samples were within the acceptable level quality index of class III category in accordance with the Interim National Water Quality Standard 2006 (INWQS) of the DOE except fpr FELDA Terapai 3 in which a Non-conformity Report had been given. Frequency for sampling and analysis varied among the estates and very much dependent on the quality of water - monthly to quarterly intervals. Map of the sampling points, was made available during the assessment. .
The Bukit Kepayang Palm Oil Mill had identified the source of outgoing water from the mill, which led into natural waterways. The sources identified were run-offs and discharges from the effluent treatment plant (ETP) and monsoon drain from the mill. Mill effluent were treated by anaerobic digestion in ponds and analyzed prior to discharge into watercourse to comply with EQA (Prescribed Premises) (Crude Palm Oil) Regulations 1977. Parameters such as pH, BOD, COD, total solids, suspended solid, oil and grease, ammoniacal nitrogen and total nitrogen were analysed, The monitoring of these discharges and the water quality of down streams was conducted weekly. Final discharge analysis was conducted by FELDA Laboratory at Bukit Goh, Pahang. Results of the analysis showed that Bukit Kepayang POM had met the requirements as stated in the DOE Permit “Kebenaran Bertulis”.
All estates had been monitoring the rainfall data as well as their water consumption as required by RSPO criteria & indicator. Daily records of rainfall data for each scheme were made available for inspection. The data was used in the water management for each scheme. Rain water harvesting was not practiced at line sites, mill and estate complexes.
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The mill had been monitoring water consumption and been reporting monthly usage against the FFB processed. Current water usage stood at 0.9 kl/mt FFB processed.
Scheme Managers had also provided appropriate training for their smallholders on the importance of maintaining the quality and availability of surface and ground water. A water management plan was being established with improvement being made to include all sources of water.
Criterion 4.5 Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate Integrated Pest Management (IPM) techniques.
Indicators: 4.5.1 Documented IPM system. Minor compliance
4.5.2 Monitoring extent of IPM implementation for major pests. Minor compliance
Specific Guidance: Major pests include leaf eating caterpillars, rhinoceros beetle and rats.
4.5.3 Recording areas where pesticides have been used. Minor compliance
4.5.4 Monitoring of pesticide usage units per hectare or per ton crop e.g. total quantity of active ingredient (a.i.) used/ tonne of oil. Minor compliance
Guidance: Growers should apply recognised IPM techniques, incorporating cultural, biological, mechanical or physical methods to minimise use of chemicals. Native species should be used in biological control wherever possible.
Specific National Guidance for Scheme Smallholders Scheme Managers Scheme Managers should provide training for their organized smallholders in IPM techniques and provide appropriate assistance on agrochemical application.
Findings:
The assessed FELDA estates had implemented the Integrated Pest Management (IPM) in conformance to their Agriculture Manual & Standard Operating Procedure For Oil Palm. Among the recognized techniques applied were establishing barn owl boxes (see Photo 18), rat baiting and growing beneficial plants along road sides and vacant areas. There was no prophylactic application of pesticides made in the schemes.
At FELDA Mayam, though barn owl was used to minimize the dependency on chemicals usage, the need to carry out regular census of population of chick development to determine the effectiveness of the IPM technique had yet to be implemented. (See Photo 19). A non- conformity report against Indicator 4.5.2 for failure of monitoring was issued.
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Photo 18 : A barn owl box Photo 19 : Unfilled census record sheet at FELDA Terapai as seen in the filed 3
In spite of the use of owl, it was noted that currently, rat baits had been used to address outbreak of rat attack on FFB. All things considered, the application of pesticides was only made when the incidences of attack had exceeded the accepted threshold level.
On the use of beneficial plant, although there was no bagworm or nettle caterpillar attacks, the estates had taken a proactive preventive stance by planting species like Antigonon leptopus, Cassia cobanensis and Tunera subulata. The incidences of pest attack were monitored to determine the success of the IPM.
Field staff and storekeepers had been keeping records on the location, quantity and type of pesticides that had been applied in their Cost Books. Also, the estates had been maintaining the records of agrochemicals being used based on per hectare and per metric ton of CPO units.
Also through records sighting, Scheme Managers had provided training for their smallholders and workers in IPM techniques and the appropriate agrochemical application. For example, there was rat baits campaign and agrochemicals handling and spraying demonstration training being carried out.
Criterion 4.6 Agrochemicals are used in a way that does not endanger health or the environment. There is no prophylactic use of pesticides, except in specific situations identified in national Best Practice guidelines. Where agrochemicals are used that are categorised as World Health Organisation Type 1A or 1B, or are listed by the Stockholm or Rotterdam Conventions, growers are actively seeking to identify alternatives, and this is documented.
Indicators: 4.6.1 Written justification in Standard Operating Procedures (SOP) of all agrochemicals use. Major compliance
4.6.2 Pesticides selected for use are those officially registered under the Pesticides Act 1974 (Act 149) and the relevant provision (Section 53A); and in accordance with USECHH Regulations (2000). Major compliance
Specific Guidance: Reference shall also be made to CHRA (Chemical Health Risk Assessment)
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4.6.3 Pesticides shall be stored in accordance to the Occupational Safety and Health Act 1994 (Act 514) and Regulations and Orders and Pesticides Act 1974 (Act 149) and Regulations. Major compliance
Specific guidance: Unless participating in established recycling programmes or with expressed permission from the authorities, triple rinsed containers shall be pierced to prevent misuse. Disposal or destruction of containers shall be in accordance with the Pesticide Act 1974 (Act 149) and Environmental Quality Act 1974 (Scheduled Wastes) Regulations 2005.
4.6.4 All information regarding the chemicals and its usage, hazards, trade and generic names must be available in language understood by workers or explained carefully to them by a plantation management official at operating unit level. Major compliance
4.6.5 Annual medical surveillance as per CHRA for plantation pesticide operators. Major compliance
4.6.6 No work with pesticides for confirmed pregnant and breast-feeding women. Major compliance
4.6.7 Documentary evidence that use of chemicals categorised as World Health Organisation Type 1A or 1B, or listed by the Stockholm or Rotterdam Conventions and paraquat, is reduced and/or eliminated. Adoption of suitable economic alternative to paraquat as suggested by the EB pending outcome of the RSPO study on IWM. Minor compliance
4.6.8 Documented justification of any aerial application of agrochemicals. No aerial spraying unless approved by relevant authorities. Major compliance
4.6.9 Evidence of chemical residues in CPO testing, as requested and conducted by the buyers. Minor compliance
4.6.10 Records of pesticide use (including active ingredients used, area treated, amount applied per ha and number of applications) are maintained for either a minimum of 5 years or starting November 2007. Minor compliance
Specific National Guidance for Scheme and Independent Smallholders Scheme Smallholders Scheme Managers should provide regular training to their organized smallholders on agrochemical use. The training should include but not necessary limited to
1. Type of chemicals allowed to be used and precautions attached to their use 2. Methods of application, safety usage and appropriate PPE to be used. 3. Storage of chemicals and safe disposal of the empty containers. 4. No chemical handling and spraying by pregnant woman 5. Chemicals should only be applied following the product label.
The scheme managers should maintain necessary records on agrochemicals provided to their participants and to monitor their use so as proper measures are adhered to minimize risk and impacts.
Under consideration for 4.6.7 Evidence of registered and permitted agrochemicals use as regulated by the Minister of Agriculture
Findings:
At FBKCU agrochemicals were used in a way that did not endanger the health of employees or the environment. There was no prophylactic use of the agrochemicals. All estates had MSC/RSPO/DOC/06-02 Issue 1 Rev. 0 Page 38 of 110
provided written justifications for all agrochemicals it was using as found in the Agriculture Manual and SOP. Safety and health precautions as recommended in the respective chemical Material Safety Data Sheet (MSDS) had been referred to.
All agrochemicals used were based on the „need-to-do basis‟ to enhance field operations. Pesticides selected for use and storage were in accordance with Pesticides Act 1974 (Act 149) and the relevant provision (Section 53A), Classification, Packaging and Labelling of Hazardous Chemical Regulation 1997 and USECHH Regulations 2000, of the Occupational Safety & Health Act 1994.
Records of the purchase, storage and use of agrochemicals had been properly documented in the Stock Statement Return. Records had been maintained more than 5 years.
A concrete chemical store, well ventilated and with locked door had been constructed at FELDA Purun (see Photo 20 & 21). Only authorized personnel (storekeeper) was allowed to enter the chemical store and issue out the chemicals. Respective chemical MSDS was made available and kept in the store. The storekeeper interviewed had shown understanding of the hazards involved and the required control measures.
Photo 20: New chemical store Photo 21: storage of chemical placed in black containment tray whose purpose is to contain leak
The Agricultural Manual had included all information regarding the chemicals and its storage, usage, hazards, trade and generic names in Malay and/or English language. As required by this criterion, where the available information were not in a language understood by the workers, Bangladeshi as in the case of FELDA Terapai 3, the plantation management had taken the effort to explain carefully those information contained in the manual to them.
Empty chemical containers were triple rinsed (except at FELDA Terapai 3, see NCR I5.3.1) and if not required for use in the field were pierced or punctured at their bottom to prevent misuse. The disposal or destruction of empty chemical containers was found to be in accordance with legal requirements - Environmental Quality (Scheduled Wastes) Regulations 2005.
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Besides FELDA workers, smallholders too had been trained in the safe handling of agrochemicals. The training included the type of chemicals allowed to be used, precautions attached to their use, dosage rate, mixing, methods of application, appropriate PPE required, storage of chemicals, triple rinsing of used container and safe disposal of the empty containers. The training was recorded.
The use of these agrochemicals had also made references to Chemical Health Risk Assessment (CHRA) USECHH Regulations (2000) of the OSHA 1994 Act. Personnel who handled and were exposed to these agrochemicals had been assessed of the risks created by the chemical to the health of the employee. At the estates assessed they had a schedule for medical surveillance of its pesticide operators (sprayers). The medical surveillance was conducted by the Pusat Kesihatan Desa.. The operators involved were all male workers. It was confirmed there were no women sprayers in the FELDA estates. The results of exposure monitoring were analyzed. The surveillance reports showed that all pesticide operators were healthy and suffered no detrimental effects as a result of their job because their exposure to the chemicals was below the Permissible Exposure Limit. This information on their health had been conveyed to them.
Except for Paraquat, no other Class I & II chemicals had been used. Its use was controlled and selective. In fact, FELDA had established a policy on the use of Paraquat which specifically state it to be used only in immature areas and if there was a requirement for use in mature areas (e.g. for rehabilitation or for use in wet months) then special request for approval had to be made to higher management.
It was observed that there was no aerial spraying being conducted in all the estates.and this was confirmed by the Scheme and Plantation Managers.
There was no request by buyers of chemical residues testing in CPO and thus, this indicator 4.6.9 is not applicable.
As had been noted in Criterion 4,5 above, it had been the practice at the scheme and plantation that insecticides and rodent baits be used only after a threshold (minimum damage) level had been exceeded and prophylactic use of such pesticides would not be permitted.
Records of pesticide use (including active ingredients used, area treated, amount applied per ha and number of applications) were monitored and maintained. The chemicals application rate used were as follows:
Glyphosate (Glyphosate Isopropylamine 41% ai at 1.936 ai /ha) Basta (Glufosate ammonium 13.5% ai at 0.03 ai / ha) Garlon (Triclopyr Butoxyl Ethyl Ester 32.1% ai at 240 ai / ha) Paraquat ai 13% Ally (Metsulfuron-methyl )
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Criterion 4.7 An occupational health and safety plan is documented, effectively communicated and implemented
Indicator 4.7.1 : Evidence of documented Occupational Safety Health (OSH) plan which is in compliance with OSH Act 1994 and Factory and Machinery Act 1967(Act139) Major compliance
The safety and health (OSH) plan shall cover the following:
a. A safety and health policy, which is communicated and implemented. b. All operations have been risk assessed and documented. c. An awareness and training programme which includes the following specifics for pesticides: i. To ensure all workers involved have been adequately trained in a safe working practices ( See also C4.8) ii. All precautions attached to products should be properly observed and applied to the workers. d. The appropriate personal protective equipment (PPE) are used for each risk assessed operation. i. Companies to provide the appropriate PPE at the place of work to cover all potentially hazardous operations such as pesticide application, land preparation, harvesting and if used, burning. e. The responsible person (s) should be identified. f. There are records of regular meetings between the responsible person(s) and workers where concerns of workers about health and safety are discussed. g. Accident and emergency procedures should exist and instructions should be clearly understood by all workers. h. Workers trained in First Aid should be present in both field and mill operations. i. First Aid equipment should be available at worksites.
Indicator 4.7.2 : Records should be kept of all accidents and periodically reviewed at quarterly intervals. Major compliance
Specific Guidance : Record of safety performance is monitored through Lost Time Accident (LTA) rate.
Indicator 4.7.3 : Workers should be covered by accident insurance. Major compliance
Specific National Guidance for Scheme Smallholders Scheme Smallholders Scheme and Group Managers should implement a health and safety plan for their organized smallholders that include agrochemical use and fire drills.
The management should keep records of all accident and review them periodically. If records are not easily available, the management has to show evidence of measures adopted to seek such records.
Findings:
The FBKCU had adopted the FELDA Group‟s Occupational Safety and Health (OSH) policy (Dasar Keselamatan dan Kesihatan Pekerjaan) (see Photo 22) and it were sighted displayed at their offices. Correspondingly, FELDA Plantations Sdn Bhd and FELDA Technoplant Sdn Bhd had published its subsidiary OSH policy (see Photo 23) and they too were seen displayed at their respective estate office. All these policies were in line with the Group OSH policy.
Translating the policy‟s statement into action, the FBKCU (Bukit Kepayang Palm Oil Mill and the estates) had documented, communicated and implemented across all levels of their organization their own OSH plan and programme, much in line with the Group OSH Policy commitment, which centred around prevention of accident and ill health at workplace, compliance to all applicable legal and other requirements and continuous OSH improvement. MSC/RSPO/DOC/06-02 Issue 1 Rev. 0 Page 41 of 110
Photo 22: FELDA Group Occupational Safety Photo 23: FELDA Plantations and Health Policy displayed at FELDA Terapai 3 Sdn Bhd Occupational Safety Worker’s Quarters and Health Policy
Most operations had been risk assessed and documented. Hazard identification, risk assessment and risk control (HIRARC) records, as well as CHRA records had also been verified and found to be in order. Relevant administrative procedures had been made available to control the risks identified. Among the activities that had been identified were chemical mixing and spraying, harvesting and FFB collection in the estates. As for the mill, the activities that had been identified were laboratory work and taking of samples, boiler operations, WTP operations, FFB sterilization through oil extraction and clarification, machine maintenance and working in confined space.
Photo 24: Pre-measured concentrate Photo 25: unlabelled water containers agrochemicals brought to field
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However, OFIs had been raised against this Indicator as follows:
1. HIRARC documentation at all estates could be further improved to cover all activities and be as thorough as the mill‟s HIRARC Register. 2. 3. The hazards of in-field mixing of pre-measured concentrated agrochemicals for dilution with water done by sprayers could be avoided by delivering pre-mix agrochemicals chemicals from the chemicals store. (Block 16 of Terapai 3). See Photo 24.
4. Although most containers had label but some were found without, e.g. water containers in the field. (Terapai 3). See Photo 25.
5. The hazards of using these bridges to be communicated as (a) one-side of the bridge at block 24 had a missing railing and (b) at block 24 and 25 the bridges‟ railings were not painted at all and no warning sign were erected to indicate bridge ahead. (Terapai 3). See Photos 26 and 27.
Photo 26: Bridge without railing on Photo 27: Bridge railing not painted and FELDA Terapai 3 in block 24 & 25 no signage indicator on approach road
Photo 28: Workers used hook & Photo 29: Vehicle transporting FFB to Mill not carry system (Ganchu method) fitted with security net and side-
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6. A wheel barrow system was highly encouraged in evacuating crop from flat land as opposed to the hook and carry system as this could lead to ergonomic issue – back ache. (Terapai 3). See Photo 28.
7. The incoming FFB lorry could be fitted with safety net and railing of sufficient height to prevent falling of FFB as it passed through public road. (Mill). See Photo 28.
6. Domestic waste bin to be provided at Workers Hostel (Terapai 3, Purun and Bukit Kepayang), for cleanliness.
7. The waste disposal site to be fenced up and sign erected, dated with date of opening and closure and a dump site management system to be considered, i.e., manner and choice of suitable site, weekly spraying of insecticide, etc. See Photo 30 and 31.
8. Bathrooms and wash area for clothing were made available near the chemical stores. Although two shower facilities and a locker room had been provided, it was deemed insufficient to cater for 15 workers especially when they return from work simultaneously to complete their bathing, wash work clothes, hang them and change to home clothings within 1 hour.
Photo 30: Garbage dumpsite Photo 31: Unfenced dumpsite and no sign erected not fenced up. informing date of opening and closure.
These awareness and training program specific to agrochemicals had been held. This related to safe chemical handling and spraying, use and maintenance of PPE, its MSDS and the need to observe requirements of CHRA.
The FBKCU made available appropriate and adequate PPE free of charge to its workers. The PPE that had been commonly given were safety boots, helmets, goggles, ear plugs, aprons, nitrile rubber and cotton gloves. Records of PPE issued to workers had been maintained and MSC/RSPO/DOC/06-02 Issue 1 Rev. 0 Page 44 of 110
sighted. Immediate Supervisor and OSH Committee members were responsible to monitor the implementation and compliance on the use of PPE. During the site assessment, it was observed that signages (to remind workers to wear appropriate PPE) had been posted at the appropriate places.
There were evidences of implementation of appropriate risk control measures, for example in the field, sprayers put on PPE (see Photo 32), posting of warning signs that showed ongoing herbicide spraying as well as at those field that was sprayed (date application started) recently with herbicide, (see Photo 33 and 34) and eye wash and shower room made available at chemical mixing area.
Photo 32: A Sprayer wearing appropriate PPE
Photo 33: Signboard warning the herbicide Photo 34: Signboard warning the herbicide spraying in progress at this plot had been applied at this plot
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Objective evidences seen at the mill include operators donning on appropriate PPE including ear plugs/muffs in high noise areas, display of noise map, posting of SOP at areas of hazardous operations such as boiler and sterilizer, fencing of machinery, use of Permit To Work and fire fighting facilities installed at strategic locations.
Persons-in-charge of health and safety were identified as evidenced in appointment letter of OSH Committee at the mill and at FELDA Technoplant Sdn Bhd for Bukit Kepayang and FELDA Mayam. Ultimate responsibility for safety, health and environment rested with Mill Manager or Estate Manager, the top most officer who had overall control and influence at site. Additionally, the Temerloh East Zone Safety and Health Officer lend support to ensure the FELDA Group commitment to Safety and Health were complied with.
Further, the assessment team sighted the Safety Committee minutes of meeting (MOM) that was held bimonthly at the mill and quarterly at the estates. It was chaired by their respective Mill or Estate Manager and discussed issues pertaining to workers‟ safety and health at workplace including accident cases, if any, and results of workplace inspections. Issues requiring immediate attention were further discussed at working level via Tool Box meetings.
Minutes had been kept of all meetings and had been distributed to OHS Committee members and attendees for follow-up as a result of the meeting stating the actions required, Person responsible and expected timeline for completion.
Accident cases had been monitored and reported to the FBKCU respective Mill or Scheme Manager, who in turn, report to FELDA Headquarters in Kuala Lumpur and state DSOH office as required by the NADOPOOD Regulation. Annual accident summary cases had been captured in JKKP 8 form and submitted to DOSH headquarters, Putrajaya. Each site Safety Performance had been displayed as LTA on the notice board of their office. Accident records had been kept and reviewed quarterly at the OSH Committee meeting. All workers were covered by Workman Compensation. The mill and schemes visited had their workers insured against accident; the local workers insured against SOCSO and the foreign workers via accident insurance, the one sighted through underwriter RHB Insurance Berhad, policy number FW024559 valid for the period 10 June 2011 till 9 June 2012.
Emergency procedure existed and their instructions to response were clearly understood by the employees of the sites assessed. Emergency evacuation and fire response drill had been conducted at the palm oil mil and scheme‟s office assessed. It was conducted in accordance to the procedure requirement of at least once a year, as sighted in the records of Ladang FELDA Mayam. Post mortem following the drill was carried out to identify strengths and weaknesses and to improve on the shortcomings in the following drill. Assembly point, emergency telephone contact numbers of essential FELDA personnel and Government Emergency Service Providers, emergency evacuation route and emergency response procedure were made available and published for everyone‟s information.
Although first aid boxes were seen available at several strategic locations at the mill and estate offices as required by this Indicator, a non-conformity report however, was given to this Indicator 4.7.1 as the Field Supervisor at FELDA Terapai 3 could not show possession of a First Aid box in the field. Those first aid boxes available were inspected and their contents were found adequate and the medicines supplied had not expired. Interviews with First Aiders were found to be conversant with the rendering first aid practices for minor injuries.
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Criteria 4.8 All staff, workers, smallholders and contractors are appropriately trained.
Indicator 4.8.1 : A training programme (appropriate to the scale of the organization) that includes regular assessment of training needs and documentation, including records of training for employees are kept. Major compliance
Guidance: Appropriate training should be given to all staff, workers and contractors by growers and millers to enable them to fulfill their jobs and responsibilities in accordance with documented procedures. All Estate Hospital Assistants (EHA) are trained on the chemicals used and related laws.
Specific National Guidance for Scheme Smallholders Scheme Smallholders The participants and registered workers on participants‟ plots are provided adequate training and skills and this is documented. The trainings can be achieved through extension activities of growers, FFB dealers or mills that purchase fruit from them, or through collaboration with relevant government agencies.
Findings:
The FBKCU management had trained their staff, workers and smallholders and records of training were kept. The records included information on the title of the training, name and signature of the attendees, name of the trainer, time and venue.
Training plans were in place and appropriate training had been given to enable them to fulfill their jobs and responsibilities in accordance to documented procedures. Among the training given as sighted were:
1. Kursus Keselamatan & Kesihatan bersama Perkeso & DOSH Negeri dated 16 November 2011 at LAdang FELDA Mayam.
2. Kursus Kalibrasi Penyelia Ladang, Zon Bera dated 16 June 2011.
3. Kursus RSPO & Pengendalian Racun dated 11 October 2011. Photos were available at FELDA Mayam
4. Penerangan bersama Jabatan Bomba, Polis & Kesihatan (RSPO)
5. Chemical Hazards, Harvesting Technique, Basic Firefighting, Fire & Evacuation Drill, Basic First Aid, Environmental Awareness and Recycling Program.
Occasionally, reminder training was also conducted during “roll-call” in the morning. Contractors had also been briefed on safety, environment and RSPO requirements upon commencement of work
The staff, smallholders and plantation workers such as the storekeepers, sprayers and fertilizer applicators interviewed had shown that they understood the hazards of the chemicals and the need to follow the safety procedures. The trade and generic names of the chemicals were made known to the workers through the MSDS training. The level of understanding on safety, health and environment varies between estates and was better at the mill. MSC/RSPO/DOC/06-02 Issue 1 Rev. 0 Page 47 of 110
Nevertheless, an OFI had been given as interviews and field observation noted the following weaknesses.
1. Although RSPO Awareness training had been attended by Estate and Mill Managers at Mempaga Region office but the cascading of training information to workers and settlers were inadequate as it was done via Roll call (training time with workers and settlers were too short compared to the 1 day training duration attended by Managers).
2. PPE training to be enhanced for sprayers as understanding of proper use of respirator and work boots were inadequate. (Ladang Terapai 3).
PRINCIPLE 5: ENVIRONMENTAL RESPONSIBILITY AND CONSERVATION OF NATURAL RESOURCES AND BIODIVERSITY
Criterion 5.1 Aspects of plantation and mill management, including replanting, that have environmental impacts are identified, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continuous improvement.
Indicators 5.1.1 Documented aspects and impacts risk assessment that is periodically reviewed and updated. Major compliance
5.1.2 Environmental improvement plan to mitigate the negative impacts and promote the positive ones, is developed, implemented and monitored. Minor compliance
Specific National Guidance for Scheme Smallholders Scheme Smallholders Scheme Managers should undertake and document aspects and impacts risk assessment, developed with the participation of the representatives of organized smallholders that sets out appropriate management planning and operational procedures for each impact identified. For significant impact time bound action plans and operational procedures should be drawn to mitigate the negative impacts. The impact assessment should cover:
Building and maintenance of roads to service smallholdings and provide access to mills Putting in drainage or irrigation systems. Replanting or expansion of smallholdings. Clearing of remaining natural vegetation and the need to avoid the use of fire (see 5.5)
Findings:
Bukit Kepayang Estates and Mill had conducted the environmental aspects and impacts risk assessment for all activities related to estate and mill operation as well as other facilities such as the workshop, chemical and waste stores, laboratory, effluent and water treatment plants. The aspect-impact assessment was reviewed annually. Assessment of the documented aspects and impacts records e.g. RSPO – P5/C.5.1/5.1.1 and RSPO 2011 (Kriteria 5.1/5.3/5.6) showed that it had been identified, evaluated and reviewed. However, some errors were found in the evaluation of the environment aspect, especially at estates side and thus an OFI 5.1.1 had been raised.
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Bukit Kepayang Estates and Mill had established an improvement plan to mitigate the significant aspects from the above risk assessment. Among the significant aspects were mill effluent discharge, boiler smoke emission, scheduled & domestic waste disposal.
Environmental improvement plans to mitigate the identified negative impacts had been implemented. Evidence of implementation in the estates included the construction of chemical store, marked buffer zones (see Photo 35), erection of no hunting and no open burning signs (see Photo 36); at the line site they involved installation of no open burning and littering sign, waste recycling activities; and at the mill they incorporated, bunding of diesel storage tank, emergency preparedness, segregation of recyclable wastes, effluent and boiler smoke improvement.
Photo 36: No open burning and no Photo 35:Riparian zone signage erected in hunting signage erected in the field – field – Ladang Purun Ladang Bukit Kepayang
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Criterion 5.2 The status of rare, threatened or endangered species (ERTs) and high conservation value habitats, if any, that exists in the plantation or that could be affected by plantation or mill management, shall be identified and their conservation taken into account in management plans and operations.
Indicator 5.2.1 Identification and assessment of HCV habitats and protected areas within landholdings; and attempt assessments of HCV habitats and protected areas surrounding landholdings. Major compliance
5.2.2 Management plan for HCV habitats (including ERTs) and their conservation. Major compliance
5.2.3 Evidence of a commitment to discourage any illegal or inappropriate hunting fishing or collecting activities, and developing responsible measures to resolve human-wildlife conflicts. Minor compliance
Specific Guidance: Identify ERTs and establish their conservation status based on national and state conservation schedules; and should provide evidence of attempts to do likewise for immediate adjacent areas.
In the event that the conservation status of a species has not been assessed locally, the IUCN list should be used to determine and report conservation status. Management plans to include areas for improvement.
Where appropriate, the above activities to be conducted involving relevant stakeholders
Specific National Guidance for Scheme Smallholders Scheme Smallholders Scheme Managers should compile information about the status of these aspects for their organized smallholders, as well as the associated mill and directly managed estate (if any). If ERTs or HCV habitats are present or potentially affected by the small holdings, appropriate measures should be employed to maintain or enhance them depending on the size of the scheme.
Findings:
The Sustainability Department from FELDA Agricultural Services Sdn Bhd had compiled information about the status of High Conservation Value (HCV) within and adjacent to their FELDA Bukit Kepayang CU schemes. The HCV Assessment Report, completed in August 2011, had assessed HCV sites in each of the four land schemes visited, that is, FELDA Bukit Kepayang, FELDA Purun, FELDA Mayam and FELDA Plantation Terapai 3. The HCV assessment had identified protected, rare, threatened or endangered species. The Management Plan and Action Plan had been developed based on the assessment finding and consultation with related stakeholders.
The Bukit Kepayang CU had inspected the sites and had engaged in consultation with applicable local government agencies (e.g. Wildlife Department, Forestry Department and JHEOA) to confirm the presence of potential HCVs. Action plan implemented was to continue communicate with relevant stakeholder to monitor any illegal activities within the areas including areas neighboring their properties.
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However, during the assessment, the auditor found no proper records of consultation made with Temerloh District Forest Office for FELDA Plantation Terapai 3. It was a concern as the FELDA Plantation Terapai 3 was adjacent to Chini Forest Reserve which has an active logging areas.. In addition, it was also noted that there was no proper records of consultation record with aborigine stakeholders at Kampung Orang Asli Bukit Rok bordering with FELDA Kepayang. Therefore, a non-conformity report against Indicator 5.2.1 had been raised.
Specific sites had been identified in each of the estate for protection of their high conservation values. Sites with HCV 4, HCV 5 and HCV 6 had been identified. External HCV sites classified as HCV 1 were recorded in FELDA Plantation Terapai 3, FELDA Purun, FELDA Mayam, and HCV 6 for FELDA Bukit Kepayang and FELDA Mayam. Maps demarcating these HCV sites had also been prepared. The audit team had inspected the sites. It was observed that no activity was permitted in these areas.
For HCV 1, the surrounding ecosystems had been protected in the estates. The FELDA Kepayang CU e.g. FELDA Purun, FELDA Mayam and FELDA Plantation Terapai 3 site were found located bordering Forest Reserve of Chini and Papai. The bordering areas had been inspected and found to be marked on maps and demarcated on ground.
The most common HCV were classified under HCV 4 for soil erosion control and water protection of the river including swamp areas within the FELDA Plantation Terapai 3. It was observed that all the steep areas including hilly stone had been left protected with no planting activities allowed.
Photo 37: The abandoned Orchard in the FELDA Plantation Terapai 3
Areas which provide local necessity had been included as HCV 5 such as a small abandoned orchard within FELDA Plantation Terapai 3. (see Photo 37). Generally, at least once a year the planter-owner (an Orang Asli) who lived outside the CU visited his land.
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For HCV 6, the surrounding areas had pockets of Orang Asli villages, such as Kg Bukit Rok, Kg Ibam and Kg Durian Kuning were identified bordering FELDA Bukit Kepayang and FELDA Mayam. The Bukit Kepayang CU had also identified the graveyard within its area as HCV 6.
No critically endangered species had been identified. In the FELDA HCV report, there was only threat from elephant that had been classified as endangered from Chini Forest Reserve while vulnerable species were documented to have their distribution range in the Bukit Kepayang CU.
During the assessment, it was found that the HCV Management and Action Plan had been prepared for each scheme after the identification of the HCV areas. The management plan had been accepted by the auditor for all related HCV areas. However, it was found that there was no management plan developed for Bukit Batu and swamp areas (Paya Terapai) at FELDA Plantation Terapai 3, Orang Asli village at Kg Durian Kuning and Kg Ibam at FELDA Mayam and FELDA Bukit Kepayang respectively. Hence, a non-conformity report against Indicator 5.2.2 had been raised.
Photos 38 and 39 : Signage indicating No Hunting and no open burning at FELDA FELDA Mayam (L) and FELDA Purun(R)
Based on the HCV assessment report, the Bukit Kepayang CU had taken proactive action by providing the monitoring form “Pelan Pengurusan (Pemantauan Hidupan Liar)” to all its estate Manager to monitor the HCVs area. However the monitoring form need to be improved and communicated effectively to each and every manager (see OFI 5.2.2). It was observed that signages had been erected at each scheme to ban hunting. The signages had been erected at every road entrance to warn that activities, such as hunting, fishing and burning were not allowed in these areas. See photo above.
Criterion 5.3
Waste is reduced, recycled, re-used and disposed off in an environmentally and socially responsible manner.
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Indicators 5.3.1 Documented identification of all waste products and sources of pollution. Major compliance
5.3.2 Having identified wastes and pollutants, an operational plan should be developed and implemented, to avoid or reduce pollution. Minor compliance
Specific Guidance : Scheduled wastes to be disposed as per EQA 1974 (Scheduled Wastes) Regulations, 2005. Reference to be made to the national programme on recycling of used HDPE pesticide containers.
Municipal waste disposal as per local authority or district council in accordance to the Ministry of Health guidelines (i.e. specifications on landfills, licensed contractors, etc) or Workers‟ Minimum Standards of Housing and Amenities Act 1990 (Act 446).
Indicator 5.3.3 Evidence that crop residues / biomass are recycled (Cross ref. C4.2). Minor compliance
Specific Guidance:
POME should be discharged in compliance with the Environmental Quality Act 1974 (Act 127) and Regulations.
For Sabah and Sarawak, POME should be discharged according to the respective state policies.
Specific National Guidance for Scheme Smallholders Scheme Smallholders Scheme managers should develop and implement an appropriate plan for the management and disposal of waste from smallholdings including the safe disposal of pesticide containers (e.g. National Programme on recycling of used HDPE pesticide containers). Scheme managers should encourage/ educate participants to use resources efficiently and apply reduce, reuse, recycle methods wherever feasible/possible.
Findings:
Waste products had been identified and documented with plans to reduce and dispose them in an environmentally and socially responsible manner except lapses at some operating units for scheduled wastes where two (2) non-conformity reports were raised. See below. Among the wastes which had been identified were general/domestic waste, scheduled waste, scrap metal, crop residue/biomass, fibre, shell, EFB and POME from the mill.
Plans to avoid pollution were in place. It included diesel tank bunding, dedicated waste stores, concreted workshops, oil traps and controlled household waste disposal. Linesite discharge was also included in the plans. Their general domestic wastes were collected and disposed by burying them at internal designated landfill areas. Proper signage had been erected at the landfill site.
Other than general wastes, plastic containers/bags from manuring and spraying activities were also collected, washed and reused. Chemical containers that could no longer be reused were disposed in accordance with legal requirement except at FELDA Terapai 3.
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Implementation of recycling program varied. The palm oil mill had started quite sometimes ago and was successful whereas the line sites had just embarked on it. Recycle bins, as in Photo 40 had been provided at workshop, worker‟s housing areas and offices for separation of solid waste - paper, glass and plastic. It was observed that recyclable wastes had been collected and stored at designated areas.
Wastes from the palm oil milling process had been disposed as follows: EFB and decanter cake were sent for mulching in the field, while crop residue/biomass i.e. fibre and shell were used as fuel in the boiler. Palm oil mill effluent (POME) was treated in the effluent treatment plant and finally discharged into the waterways. Other liquid spills had been identified and mitigated through the use of sand or oil trap.
Photo 40: 3R Bin at Line Site Photo 41: Scheduled Waste Store at Bukit Kepayang Palm Oil Mill
Waste generated from the maintenance activities of equipment and machinery at the mill were scrap metal and scheduled wastes such as spent lubricant oil, spent oil filter, clinical waste and empty chemical containers. The assessment team had visited the scrap metal and scheduled waste storage area. The scheduled waste store was well built, with appropriate containment, and controlled access. See Photo 41. The wastes had been segregated, labelled, stored, inventoried and disposed in full compliance to EQA (Scheduled Wastes) Regulations 2005 except for FELDA Terapai 3 where wastes generated were not inventoried and labelled. A non- conformity report against Indicator 5.3.1 was therefore issued.
It was observed that at FELDA Ladang Mayam the handling of the pesticide containers were not in conformance to company established procedure. A non-conformity report against Indicator 5.3.2 was issued as the implementation of empty pesticide container rinsing was not evident because there was no evidence that form “Rekod Bahan Kimia Pertanian Kegunaan Harian” had been used.
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At the smallholder‟s level, interviews showed that they had been reminded during the JKKR meeting of the need for proper disposal and recycle of waste including the safe disposal of pesticide containers. Their campaign to increase awareness for recycling was ongoing.
Criterion 5.4 Efficiency of energy use and use of renewable energy is maximized.
Indicators 5.4.1 Monitoring of renewable energy use per tonne of CPO or palm product in the mill. Major compliance
5.4.2 Monitoring of direct fossil fuel use per tonne of CPO or kW per tonne palm product in the mill (or FFB where the grower has no mill). Minor compliance
Guidance:
To establish baseline values and observe trends within appropriate time-frame. Growers and millers should assess the energy use including fuel and electricity, and energy efficiency of their operations. The feasibility of collecting and using biogas, biodiesel and biofuels should be studied if possible.
Specific Guidance :
Scheduled wastes to be disposed as per EQA 1974 (Scheduled Wastes) Regulations, 2005. Reference to be made to the national programme on recycling of used HDPE pesticide containers.
Municipal waste disposal as per local authority or district council in accordance to the Ministry of Health guidelines (i.e. specifications on landfills, licensed contractors, etc) or Workers‟ Minimum Standards of Housing and Amenities Act 1990 (Act 446).
Indicator
5.4.3 Evidence that crop residues / biomass are recycled (Cross ref. C4.2). Minor compliance
Guidance:
To establish baseline values and observe trends within appropriate time-frame. Growers and millers should assess the energy use including fuel and electricity, and energy efficiency of their operations. The feasibility of collecting and using biogas, biodiesel and biofuels should be studied if possible.
Specific National Guidance for Scheme and Independent Smallholders
Scheme Managers
Mill managers should be encouraged to develop appropriate action plan for improving the efficiency of energy use in their schemes and land holdings.
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Findings:
All energy used in the mill had been monitored and the mill had been committed to use renewable energy. As such, fibre and nutshell had been used as boiler fuel to generate steam for the mill operations.
The monitoring of fossil fuel usage as per tonne of CPO on a monthly basis had also been done in the estates. Currently diesel usage stood at 0.63l/mt FFB processed, mainly to run emergency generator.
Scheduled wastes had been discussed under Criterion 5.3 and they had been disposed as per EQA 1974 (Scheduled Wastes) Regulations, 2005.
FBKCU general domestic wastes were collected and disposed by burying them at internal designated landfill areas. Proper signage had been erected at the landfill site.
Criterion 5.5 Use of fire for waste disposal and for preparing land for replanting is avoided except in specific situations, as identified in the ASEAN Guidance or other regional best practice.
Indicators: 5.5.1 No evidence of open burning. Where controlled burning occurs, it is as prescribed by the Environmental Quality (Declared Activities) (Open Burning) Order 2003. Major compliance
5.5.2 Previous crop should be felled/mowed down, chipped/shredded, windrowed or pulverized/ ploughed and mulched. Minor compliance
Specific Guidance: A special dispensation from the relevant authorities should be sought in areas where the previous crop or stand is highly diseased and there is a significant risk of disease spread or continuation into the next crop.
5.5.3 No evidence of burning waste (including domestic waste). Minor compliance
Specific National Guidance for Scheme and Independent Smallholders Scheme Smallholders Scheme and Group Managers should carry out training and provide extension support to their participants to avoid using fire for land preparation or open burning is not used except in accordance with ASEAN guidelines or other regional best practice.
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Findings:
Photo 42: Signage indicating no open burning permitted and no hunting
It was verified during the assessment through site visits, interviews and records that no open burning had been carried out in line with the FBKCU‟s policy on zero burning. The Scheme and Plantation Managers had carry out training and provide extension support to their participants to avoid open burning. It was evident that at the line site garbage collection contractors came to collect the household refuse.
In the fields assessed there were adequate warning signs not permitting open burning and hunting, for example, as shown in Photo 42 above under Indicator 5.2.2
There was no replanting program being scheduled in the immediate future as most schemes had been established with fairly young to mature grown-up palms prior to this assessment.
Criterion 5.6 Plans to reduce pollution and emissions, including greenhouse gases, are developed, implemented and monitored.
Indicators: 5.6.1 Documented plans to mitigate all polluting activities (Cross ref to C 5.1). Major compliance
5.6.2 Plans are reviewed annually. Minor compliance
Specific Guidance: Pollutants and emissions are identified and plans to reduce them are developed in conformance to national regulations and guidance.
5.6.3 Monitor and reduce peat subsidence rate through water table management. (Within ranges specified in C 4.3). Minor compliance
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Specific National Guidance for Scheme and Independent Smallholders Scheme Managers Scheme Managers should include an assessment of all polluting activities by their participants and develop abatement plan.
Findings:
The mill and estates had identified the sources of pollution and emissions. Various and regular measurements of the emissions and pollutants had been taken and the data had been used to develop mitigating plans and strategies for improvement. The assessor had verified the plans and among the planned actions were the construction of oil traps, bunded diesel storage tank, reduced chemical consumption and POME being treated in a series of ponds and the final discharge regularly monitored for, amongst other things, BOD, COD levels. The action plans had also been reviewed during regular operations meetings. The action plans had been discussed at regular operations meeting and reviewed annually by the Mill Manager and Estate Manager.
There was no peat soil area in the FBKCU. Therefore, Indicator 5.6.3 is not applicable.
PRINCIPLE 6: RESPONSIBLE CONSIDERATION OF EMPLOYEES AND OF INDIVIDUALS AND COMMUNITIES AFFECTED BY GROWERS AND MILLS
Criterion 6.1 Aspects of plantation and mill management, including replanting, that have social impacts are identified in a participatory way, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continuous improvement.
Indicators: 6.1.1 A documented social impact assessment including records of meetings. Major compliance
Specific Guidance: Non-restrictive format incorporating elements spelt out in this criterion and raised through stakeholder consultation including local expertise.
6.1.2 Evidence that the assessment has been done with the participation of affected parties. Minor compliance
Specific Guidance: Participation in this context means that affected parties or their official representatives or freely chosen spokespersons are able to express their views during the identification of impacts, reviewing findings and plans for mitigation, and monitoring the success of implemented plans.
6.1.3 A timetable with responsibilities for mitigation and monitoring is reviewed and updated as necessary. Minor compliance
Guidance: Identification of social impacts may be carried out by the grower in consultation with other affected parties, including women and migrant workers as appropriate to the situation. The involvement of independent experts should be sought where this is considered necessary to ensure that all impacts (both positive and negative) are identified.
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Plantation and mill management may have social impacts on factors such as:
1. Access and use rights. 2. Economic livelihoods (e.g. paid employment) and working conditions. 3. Subsistence activities. 4. Cultural and religious values. 5. Health and education facilities. 6. Other community values, resulting from changes such as improved transport /communication or arrival of substantial migrant labour force.
Specific National Guidance for Scheme and Independent Smallholders Scheme Smallholders Management aspects that can result in social impact should be identified with the consultation of their participants or representatives. If it warrants, a documented SIA should be conducted with the participation of the affected parties. A time bound mitigation plan with responsibilities should be drawn and implemented (with review and update if necessary).
Findings:
A documented SIA including records of meeting were sighted. Two SIA reports for 2011 were prepared ie:
(a) Laporan SIA (RSPO) for Ladang FELDA Mayam, Ladang FELDA Bukit Kepayang, Ladang FELDA Purun and Ladang FELDA Terapai 03.
(b) Laporan Penilaian Impak Sosial Kompleks Bukit Kepayang, covering all plantations in (a).
The SIA had been conducted based on a questionnaires form formulated by FELDA HQ. They covered impacts of activities (subsistence, economic livelihood, and cultural/religious values), facilities (shop, health, education) and other community values (transport and communication, presence of foreign workers) on household members.
Lists of stakeholders involved in the SIA were available. The respondents were informed prior to the conduct of the survey as evidenced in Permohonan Membuat Survey di Rancangan FELDA Bukit Kepayang..
In Bukit Kepayang scheme, the SIA interviewed 60 respondents comprising 5% contractors, 37% male settlers, 25.4% female settlers, 6.8% traders, 3.4% estate staff (FELDA scheme and Techno Plant), 1.7% office staff, 5% Indonesian workers, 3.4% Bangladeshi workers and others 3.4%.
The SIA conducted in 2011 found one (1) positive impact and nine (9) negative impacts. The positive impact was good security condition in Bukit Kepayang and Mayam. The nine (9) negative impacts and their mitigation plans, assigned responsible parties, timeline, and monitoring of progress was available and reviewed. Appropriate actions had been taken with progress being monitored.
In addition to the above, it was noted during assessment that upon discussion with nearby Orang Asli residents in Kg Ibam/Bukit Rok showed there was a need to conduct a social impact
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survey on the impacts (smoke and dust particle) of Bukit Kepayang POM on the mill workers living in the mill quarters and the residents of nearby Orang Asli village. The Orang Asli indicated the smoke and dust from the Palm Oil Mill might affect local health in the long run. An OFI had been raised against this indicator 6.1.1
Various programmes had been implemented in the schemes involving the participation of all settlers. The emphasis was on education, health, spirituality and the strengthening of the family institution.
On education, emphasis was given to the implementation of the Family Literacy Centre (PLK) for children between three and five years old, FELDA Community Rehabilitation Centre (PDK), Regional Tuition Centre and the FELDA Tuition Scheme (STF) were carried out with the co- operation of the Ministry of Education of Malaysia. The New Generation Skills Programme continued to train youths in various skills at certificate and diploma levels.
At the same time, different types of loans and assistance were made available for the benefit of settlers. These facilities were helpful in improving educational achievement and quality of life of the FELDA community. As for the new generation, there was continued emphasis on human capital development through leadership activities, trainings, spiritual programs, sports and culture, and participation in voluntary bodies, organized by FELDA or jointly with government agencies. Through participation in the programs, success had been achieved in strengthening youths' personality and strength of character and in their avoidance of social delinquency.
Another unique features of FELDA‟s development model was that the settlers, the primary beneficiaries of its services, not only owned their agricultural holdings but collectively, they also owned the commercial enterprises of the group through their investments in the FELDA Investment Cooperative (FIC) or Koperasi Permodalan FELDA (KPF), which is the principal shareholder of FELDA Holdings Bhd, the investment holding company of the group.
The FIC was set up in 1980 with the primary purpose of encouraging the settlers to adopt a culture of savings and thrift and to provide an investment vehicle for their surplus income. More than 90% of the membership of the cooperative comprised of settlers. Since its establishment, the cooperative had shown remarkable growth with the members‟ capital having increased more than six times in the last 13 years, and, similarly, over the same period, its income, derived mainly from the profits of the FELDA Holdings group, expanded from RM36 million to RM254 million. In view of its robust performance, the FIC had consistently declared cash dividends to its members, ranging from 10% to 15% per annum. These were extremely high rates compared to the current average of 2.5% on bank deposits and dividend yields of less than 4% on Malaysian stocks. By maintaining sterling performance and rewarding its members with high yields, the FIC had been successful in supplementing the settlers‟ incomes and motivating them to continue to save for their future.
Criterion 6.2 There are open and transparent methods for communication and consultation between growers and/or millers, local communities and other affected or interested parties.
Indicators: 6.2.1 Documented consultation and communication procedures. Major compliance
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6.2.3 Maintenance of a list of stakeholders, records of all communication and records of actions taken in response to input from stakeholders. Minor compliance
Specific Guidance: Decisions that the growers or mills are planning to make should be made clear, so that local communities and other interested parties understand the purpose of the communication and/or consultation.
Communication and consultation mechanisms should be designed in collaboration with local communities and other affected or interested parties. These should consider the use of existing local mechanisms and languages. Consideration should be given to the existence/ formation of a multi-stakeholder forum.
Communications should take into account differential access to information of women as compared to men, village leaders as compared to day workers, new versus established community groups, and different ethnic groups. Consideration should be given to involving third parties, such as disinterested community groups, NGOs, or government (or a combination of these), to facilitate smallholder schemes and communities, and others as appropriate, in these communications.
Specific National Guidance for Scheme and Independent Smallholders Scheme Smallholders Scheme Managers should provide the necessary mechanism and designate an officer for consultation and communication with participants/representatives and other stakeholders and this should be documented
Findings:
There were documents on consultations and communication procedures produced by the estates and the oil mill, in the form of records of meetings and discussions involving the CU‟s management and community leaders and workers‟ representatives. Consultation was based on Procedure of communication as contained in FELDA Palm Industries Sdn Bhd (FPISB), document no.: FPI/L2/QOHSE-6.0 entitlted Manual Prosedur, Komunikasi, Penglibatan dan Rundingan (Communication, Participation and Consultation) involving internal and external consultation.
A management official with authority as a focal point of contact at each operating unit level had been nominated to be responsible on issues related to consultations and communication between growers and/or millers with local communities and affected or interested parties. They were the Mill Manager for Bukit Kepayang Oil Mill, the respective Scheme Manager at their respective estate and the FPSB Plantation Manager for FELDA Terapai 3.
An extensive list of stakeholders had been maintained with names and addresses by the mill and each estate. They consisted of suppliers, community institutions, local community heads (including the Orang Asli) and workers‟ representatives.
The meetings involved the CU‟s management and community leaders and workers‟ representative were held monthly. Settlers‟ involvement and participation were encouraged. Examples sighted were two meetings, the first involved GPW Committee Members, Block Leaders, Social Development Authority (SDA), a FELDA staff member and FELDA Mayam Scheme Manager and the second among the Replanting Committee Members involving GPW Representative, FTP Agricultural Unit Head, Supervisors, 12 Block Leaders and FELDA Mayam
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Scheme Manager. All issues raised were given due attention and actions had been taken and resolved.
There were documents, produced by the mill and schemes to show the existence of documented consultations and communication, for example, Minit Mesyuarat JK Wanita RSPO (Gender Committee) dated 20 September 2011 at Ladang FELDA Mayam.
Other forms of Management communication with, to or from staff and settlers, mill staff and interested parties include the following:
Assembly Suggestion boxes Internal circulars/memos Daily informal communication Notice board and posters Through Staff/workers representative Environmental and social campaigns Through written complaint form Management by walk-about
The language of communications had been Malay or English where appropriate. Consultation with Orang Asli were carried out via:
(a) Perjanjian Persefahaman Menggunakan Jalan Pertanian Dalam Ladang Felda Mayam dated 11 October 2011.
(b) Perjanjian Persefahaman Menggunakan Jalan Pertanian Dalam Ladang Felda Bukit Kepayang dated 11 October 2011.
Assessment visits to Orang Asli communities, i.e. Kg Durian Kuning (outside Ladang Felda Mayam) and Kg Ibam/Bukit Rok (outside Ladang Felda Bukit Kepayang) confirmed that informal consultations were held from time to time to discuss matters such as use of access roads. Similarly, there were also consultations with Forestry Department, Temerloh and PERHILITAN, headquarters, Putrajaya issues pertinent to their areas of jurisdiction. Consultation with the significant stakeholders were recorded and sighted during the assessment.
The stakeholder meeting and interviews confirmed that communications and relationships between the estates and stakeholders were good. Consultations were held with randomly selected workers of the estates (4 contractor‟s Indonesian workers and 4 female local workers at Bukit Kepayang POM) and the oil mill (2 workers) involved in the assessment as well as contractors and suppliers. In these consultations, issues related to Principle 6 and other related criteria were discussed).
Criterion 6.3 There is a mutually agreed and documented system for dealing with complaints and grievances, which is implemented and accepted by all parties.
Indicators: 6.3.1 Documentation of the process by which a dispute was resolved and the outcome. Major compliance
Specific Guidance: Records are to be kept for 3 years.
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Minor compliance
6.3.3 The system is open to any affected parties. Minor compliance
Guidance: Dispute resolution mechanisms should be established through open and consensual agreements with relevant affected parties.
Complaints may be dealt with by mechanisms such as Joint Consultative Committees (JCC) with gender representation. Grievances may be internal (employees) or external.
Specific National Guidance for Scheme and Independent Smallholders Scheme Smallholders Scheme and Group Managers should provide the necessary mechanism to deal with complaints and grievances by their participants and other stakeholders and the outcome is open to affected parties. The management should actively seek to resolve the complaint and grievances within a reasonable period.
Findings:
A manual entitled Manual RSPO Kumpulan FELDA: Rungutan, Keingkaran, Siasatan Insiden dan Tindakan Pembetulan was available and described procedure for handling complaints and grievances. The Managers used this manual. In doing so, it was seen that grievances and complaints had been resolved in an effective, timely and appropriate manner This was evident from the records being kept.
Complaint forms were available at palm oil mill and estate offices for any interested party to register their complaints. Suggestion boxes were also available at these offices. The aggrieved party could fill in the complaint form, deposit in the Suggestion Box or write a letter or submit the complaint verbally to anyone in the main office or to the responsible official on social issues or to the workers‟ representatives or gender representatives. The system was open to everyone, local public as well estate communities. There was no evidence indicating the system was limited to certain parties (e.g. workers) only.
Besides the above, the Scheme Managers also gathered information from various stakeholders on a regular basis through meetings and casual village rounds.
The complaints and dispute resolution procedures was demonstrably accepted by the accepted parties. This was evident as recorded and filed in record book entitled ”Isu Rancangan” as sighted at FELDA Bukit Kepayang and in “Buku Rekod Aduan” at FELDA Mayam scheme, a case each extracted as shown below:
a) FELDA Bukit Kepayang scheme. .
On 12 July 2011, a settler earlier requested a contractor to extend his house with a cost RM30,000 for the main building and RM10,000 for the kitchen extension. However, the contractor spent RM35,000 on the main building with RM5,000 remaining for the kitchen. Action was taken to contact the contractor. On 24 July 2011, scheme manager had a discussion with the contractor and the settler concerned. The outcome was the contractor agreed to contribute RM5,000 to ensure that the kitchen extension cost is
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RM10,000 as agreed earlier. By 15 August 2011, a senior supervisor confirmed that the contractor fulfilled his promise by building the extension kitchen with a cost of RM10,000.
b) FELDA Mayam scheme.
On 13 January 2011, a settler complained of cows owned by other settlers entered his farm. Two days after (15 January 2011), the scheme supervisor discussed with cow owners. It was decided that to set up “cattle trap” and repair the fences to keep away the cows. By 21 February 2011, a “cattle trap” was set up and the fences were repaired to keep away the cows, as planned. The outcome was by December, there was no more complaint on cows entering the settler‟s farm.
Criterion 6.4 Any negotiations concerning compensation for loss of legal or customary rights are dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions.
Indicators: 6.4.1 Establishment of a procedure for identifying legal and customary rights and a procedure for identifying people entitled to compensation. Major compliance
6.4.2 A procedure for calculating and distributing fair compensation (monetary or otherwise) is established and implemented. This takes into account gender differences in the power to claim rights, ownership and access to land; and long-established communities; differences in ethnic groups‟ proof of legal versus communal ownership of land. Minor compliance
6.4.3 The process and outcome of any compensation claims is documented and made publicly available. Minor compliance
Specific Guidance: This criterion should be considered in conjunction with Criterion 2.3.
Specific National Guidance for Scheme and Independent Smallholders Scheme Smallholders Scheme and Group Managers should be able to show that they have acquired and/or allocated land for their organized smallholdings in compliance with this criterion. If any land acquisition requires fair compensation, it should be dealt with documented system that includes respective parties involved and settlement details, if such provision is not available judicially.
Findings:
FELDA has a specific procedure in place for identifying legal and customary rights and for identifying people entitled to compensation. This procedure had been implemented in the form of consultation with Orang Asli leaders and villagers. Document on evaluation of land use entitled Penilaian Pengambilan Tanah by Jabatan Penilaian dan Perkhidmatan Harta, Kementerian Kewangan Malaysia, was available and used as a guide for compensation to land use.
As of to-date, there had been no claim for compensation made against the CU by the Orang Asli in Kg. Durian Kuning, Kg. Ibam/Bukit Rok and Kg. Tanah Merah.
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The procedure for calculating and distributing fair compensation would not be carried out at the estate/mill level. This would be done at the company level.
Criterion 6.5 Pay and conditions for employees and for employees of contractors always meet at least legal or industry minimum standards and are sufficient to provide decent living wages.
Indicators: 6.5.1 Documentation of pay and conditions. Major compliance
6.5.2 Labour laws, union agreements or direct contracts of employment detailing payments and conditions of employment (e.g. working hours, deductions, overtime, sickness, holiday entitlement, maternity leave, reasons for dismissal, period of notice, etc) are available in the language understood by the workers or explained carefully to them by a plantation management official in the operating unit. Minor compliance
6.5.3 Growers and millers provide adequate housing, water supplies, medical, educational and welfare amenities in accordance with Workers‟ Minimum Standard of Housing and Amenities Act 1990 (Act 446) or above, where no such public facilities are available or accessible (not applicable to smallholders). Minor compliance
Guidance: Where temporary or migrant workers are employed, a special labour policy should be established. This labour policy would state the non discriminatory practices; no contract substitution of original contract, post arrival orientation program to focus especially on language, safety, labour laws, cultural practices etc; decent living conditions to be provided. Migrant workers are legalised, and a separate employment agreement should be drawn up to meet immigration requirements for foreign workers, and international standards, if ratified.
Specific National Guidance for Scheme and Independent Smallholders Scheme Smallholders Where temporary or migrant workers are employed, a special labour policy should be established. This labour policy would state the non discriminatory practices; no contract substitution of original contract, post arrival orientation program to focus especially on language, safety, labour laws, cultural practices etc; decent living conditions to be provided. Migrant workers are legalised, and a separate employment agreement should be drawn up to meet immigration requirements for foreign workers, and international standards, if ratified.
The Managers should educate the participants on legal obligations in employing workers on their plot/land.
Findings:
Contracts of pay and conditions were documented and in compliance with the law. Pay and conditions and contracts were inspected in all offices visited and discussed during worker interviews. They were understood by all workers and generally they were satisfied with the salaries given which was above average.
There were two 3-years agreement (January 2010 till December 2012) between the mill/estate and the workers‟ unions, namely:
1. Perjanjian Bersama Di Antara FELDA Palm Industries Sdn Bhd dan Kesatuan Pekerja- pekerja FELDA Palm Industries Sdn Bhd (Semenanjung); and
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2. Perjanjian Bersama Kali Ke-Empat Di Antara FELDA Plantations Sdn Bhd dengan Kesatuan Pekerja-pekerja FELDA Plantations Sdn Bhd (Semenanjung)
signed between the Unions‟ representatives and the Company to adopt the pay and conditions for their staff. These agreements covered terms of service, salary, allowances and monetary benefits, medical benefits, confirmation of post, salary scale, transfer, retirement, working hours, overtime, sickness, traveling claims, subsidies (housing loan, electricity supply, water supply), leave entitlement, discipline and formation of a committee at Headquarters and Regional level.
In addition to above, for foreign workers their terms of employment were explained to them by FELDA Management.
The pay conditions were also specified in their letter of appointment and in pay slips. Files at FELDA Mayam showed that FELDA Technoplant Sdn Bhd had a document entitled “Kadar Upah Pekerja Ladang 2011”. Every month, FELDA Technoplant Sdn Bhd informed Scheme Manager on the wage rate for workers. Each owner was given a statement on the wage rate as evidenced in a document note dated 7 January 2011 issued by FELDA Technoplant Sdn Bhd. Document on the income statement (in Malay language) of a settler in Bukit Kepayang scheme for November 2011 showed the weight of FFB, monthly income and deductions.
In addressing indicator 6.5.3, mill and all schemes visited showed that FELDA had provided decent houses and other facilities meeting the Workers‟ Minimum Standard of Housing and Amenities Act 1990 to their employees and contract workers. In most cases they had exceeded national standards. The mill and estate office staff, Bangladeshi and Indonesian workers were housed in the quarters with free piped water and electricity supply.
However, it was found that the housing condition for the contractor‟s four Indonesian workers living in a 2-year old wooden hut built just outside the mill processing area was found to be inadequate. The wooden hut had no proper living room, kitchen, washroom and also not provided with electricity and water supply. A major Non-Conformity on 6.5.3 had been given to the mill
In addition, it was noted that FELDA Terapai 3 as the FELDA Water Treatment Plant had been providing water for estate and domestic use which was found not to be meeting the standard ”Kualiti Air Minum Kebangsaan” as reported by the Pekan Public Health District Department dated 22nd November 2011. Additionally, there was no record of water quality monitoring and in-house laboratory test done since the last three years. However, the corrective actions were in progress such as records of water monitoring, work schedule on water treatment plant , sample of water had been sent for FASSB Laboratory. .
Criterion 6.6 The employer respects the right of all personnel to form and join trade unions of their choice and to bargain collectively. Where the right to freedom of association and collective bargaining are restricted under law, the employer facilitates parallel means of independent and free association and bargaining for all such personnel.
Indicators: 6.6.1 Documented minutes of meetings with main trade unions or workers representatives. Major compliance 6.6.2 A published statement in local languages recognizing freedom of association. Minor compliance MSC/RSPO/DOC/06-02 Issue 1 Rev. 0 Page 66 of 110
Guidance: The right of employees and contractors to form associations and bargain collectively with their employer should be respected. Documented company policy recognizing freedom of association.
Labour laws and union agreements or in their absence, direct contracts of employment detailing payments and other conditions are available in the languages understood by the workers or explained carefully to them by a plantation management official in the operating unit.
Specific National Guidance for Scheme and Independent Smallholders Scheme Smallholders Scheme managers must respect the right of participants to form and represent themselves through their own representative associations and / or trades unions and accept them as parties to participatory processes, consultations, communications and negotiations in the management of the scheme.
Published statement recognizing freedom of association. Minutes of meetings with trade unions and worker representatives.
Procedure is displayed openly. Interviews with workers confirmed implementation. Internal C&G file. 27/07/2007. Meeting room estate II. 39 persons attend. 14 issues discussed and solutions proposed. The representatives usually set the agenda.
Findings:
FELDA in general has advocated the freedom and rights of the settlers, employees and contractors to form associations and to bargain collectively for the benefits of the settlers and employees. An official published statement entitled Polisi Kebebasan Menganggotai Khidmat Sukarela.in the Malay language as understood by the settlers and employees recognizing freedom of association was available and exhibited in public places.
For instance, at the mill and scheme level the respective Managers of FBKCU respect the right of participants to form and represent themselves through their own representative associations and / or trades unions and accept them as parties to participatory processes, consultations, communications and negotiations in the management of the scheme. Such associations for settlers include Koperasi Permodalan FELDA (for them and their family members to join and invest), Youth Association (Belia 4B), Persatuan GWP, for the female employee and many others, and for workers they include Kesatuan Pekerja-pekerja FELDA Palm Industries Sdn Bhd (Semenanjung); and Kesatuan Pekerja-pekerja FELDA Plantations Sdn Bhd (Semenanjung).
FELDA staffs were encouraged to become members of Kesatuan Pekerja-pekerja FELDA (Staff Association), Pahang Barat Daya branch..
There were documented minutes of meetings between the management with workers‟ representatives as evidenced below.
a) The Union (Kesatuan Pekerja-Pekerja FELDA Palm Industries Sdn Bhd.) had its meeting entitled Mesyuarat Jawatan Kuasa Kerja Agung Kali Ke-2 on 13 Sept 2011 in Kuala Terengganu. Its branch Cawangan Kilang Sawit Felda Bukit Kepayang’s representative attended the meeting.
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b) Meeting minutes of Kesatuan Pekerja-pekerja FELDA Cawangan Pahang Barat Daya dated 16 April 2011 was available. Separate assessment discussions with (a) Union‟s Chairman and Secretary and (b) 6 mill workers at Bukit Kepayang Branch showed that freedom of association had brought benefits to the members and the mill staff.
c) At the mill level, meeting minutes of Joint Consultative Council, JCC Bil (6)/2011 dated 19 August 2011 was sighted. This committee meeting involved JKKK Bukit Kepayang and JKKK Mayam.
On the other hand, foreign workers were subjected to Immigration Department‟s terms and conditions of employment which restrict them from having association. The management official of the operating unit had explained to them that their employment were in accordance with Malaysian laws, meeting the requirements of pay and conditions under Criterion 6.5 above.
Criterion 6.7 Children are not employed or exploited. Work by children is acceptable on family farms, under adult supervision, and when not interfering with education programmes. Children are not exposed to hazardous working conditions.
Indicator: 31 6.7.1 Documented evidence that minimum age requirement is met. Major compliance
Guidance: Growers and millers should clearly define the minimum working age, together with working hours. Only workers 16 years and older may be employed, with the stated exception of family farms. Smallholders should allow work by children only if permitted by national regulations.
The minimum age of workers should be not less than 16 years, or the minimum school leaving age, or the minimum age permitted under national regulations, where higher.
Specific National Guidance for Scheme and Independent Smallholders Scheme Smallholders Children should only be allowed work in schemes and individual land holdings if permitted by national regulations and not interfering with education programmes. Under such situation, children should only work under adult supervision.
Findings:
FELDA has a written statement Policy entitled Polisi Pekerja-Pekerja Kanak-Kanak prohibiting employment of children below 17 years old . The statements were seen displayed at public places of the FBKCU offices.
The policy was implemented as it as observed that there was no record of persons under the age of eighteen, the minimum working age under Malaysian Labor Laws (Am. Act A1238) hired by the CU. This was also confirmed by the workers interviewed and verified through employment card and copies of passports.
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Criterion 6.8 Any form of discrimination based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation, or age, is prohibited.
Indicators: 6.8.1 A publicly available equal opportunities policy. Major compliance
6.8.2 Evidence that employees and groups including migrant workers have not been discriminated against. Minor compliance
Guidance: The grievance procedures detailed in 6.3 apply. Positive discrimination to provide employment and benefits to specific communities is acceptable as part of negotiated agreements.
Specific National Guidance for Scheme and Independent Smallholders Scheme Smallholders Scheme managers must ensure that women, indigenous peoples and minorities participate in negotiating processes. Positive discrimination to provide employment and benefits to specific communities is acceptable as part of negotiated agreements. All stakeholders should participate in the negotiating processes.
Findings:
There were clear signs for conformance to the RSPO P&C's around the mill and estates as there was a publicly available equal opportunities policy entitled “Polisi Kesetaraan Peluang” in Malay language, established, written and signed by the FELDA Managing Director was sighted displayed at all offices visited. The policy stated clearly the equal rights to all employees irrespective of race, caste, nationality, religion, gender, union member, political affiliation and disability. It was also explained to foreign workers and found understood by them.
It was noted that there was no evidence of discrimination. All workers (local or migrant, male or female) has the same payments and conditions of employment associated with the jobs they were hired for. This was confirmed during assessment interview with four Indonesian contract workers. Workers were treated equally with regard to working opportunities and each worker received an average monthly income of about RM1,200. They were satisfied with the job opportunities..
Criterion 6.9 A policy to prevent sexual harassment and all other forms of violence against women and to protect their reproductive rights is developed and applied.
Indicator: 6.9.1 A policy on sexual harassment and violence and records of implementation. Major compliance
6.9.2 A specific grievance mechanism is established. Major compliance
Guidance: There should be a clear policy developed in consultation with employees, contractors and other relevant stakeholders, which should be publicly available. The policy is applicable within the boundaries of the plantation/mills or while on duty outside the premises. Progress in implementing the policy should be regularly monitored and the results of monitoring activities should be recorded. MSC/RSPO/DOC/06-02 Issue 1 Rev. 0 Page 69 of 110
A committee specifically to address concerns of women may be required to comply with the criterion. This committee will consider matters such as; training on women‟s rights, counselling for women affected by violence and child care facilities to be provided by the growers and millers. The activities of the committee should be documented.
Specific National Guidance for Scheme and Independent Smallholders
Scheme Smallholders For Scheme Managers, there should be a clear policy made publicly.
Findings:
There was a well displayed and clear policy on sexual harassment and violence entitled “Polisi Gangguan Seksual” Seksyen 22, kod etika dan tatalaku petugas. The policy in Bahasa Malaysia, in language they understood, was made available to all female employees. The sexual harassment and violence policy had been implemented.
A specific grievance mechanism to handle issues related to sexual harassment and violence had been established. The grievances were dealt with through formal channels such as JKKR, GPW and Belia (Youth Movement). A Gender Committee or Jawatankuasa Hal Bergerak Wanita whose responsibilities among others was to look into gender issues (especially matters related to sexual harassment) had been established at mill and each scheme being assessed. This was also confirmed by information gathered during consultations held with the female employees as well as members of the Gender Committee.
Assessment interviews with 4 female office staff at Bukit Kepayang POM, 5 settlers at Ladang FELDA Bukit Kepayang and 2 female staffs (one of them a committee member of Gender Committee) at Ladang FELDA Mayam confirmed that there was no case of sexual harassment and violence.
Criterion 6.10 Growers and mills deal fairly and transparently with smallholders and other local businesses.
Indicators: 6.10.1 Pricing mechanisms for FFB and inputs/services shall be documented. Major compliance
6.10.2 Current and past prices paid for FFB shall be publicly available. Minor compliance
6.10.3 Evidence that all parties understand the contractual agreements they enter into, and that contracts are fair, legal and transparent. Minor compliance
6.10.4 Agreed payments shall be made in a timely manner. Minor compliance
Guidance: Transactions with smallholders should consider issues such as the role of middlemen, transport and storage of FFB, quality and grading.
Smallholders must have access to the grievance procedure under Criterion 6.3, if they consider that they are not receiving a fair price for FFB, whether or not middlemen are involved.
The need for a fair and transparent pricing mechanism is particularly important for outgrowers, who are contractually
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obliged to sell all FFB to a particular mill. If mills require smallholders to change practices to meet the RSPO criteria, consideration must be given to the costs of such changes, and the possibility of advance payments for FFB could be considered.
Specific National Guidance for Scheme and Independent Smallholders Scheme Smallholders Scheme Managers are responsible for fair and transparent deal with participants and other local business. This will include:
uts/mechanisms are documented (where these are under the control of the mill or plantation).
fair, legal and transparent and all costs, fees and levies are explained and agreed in advance.
ely manner.
Findings:
FBKCU (estates and mill) dealt fairly and transparently with scheme smallholders and other local businesses. A business communication policy, Polisi Perhubungan Perusahawan and contracts with business community was available and placed in public places.
An interview held with a construction contractor (for FELDA schemes in the region) for the past 9 years confirmed that business dealings with FELDA Kompleks Bukit Kepayang have been fair and transparent. All payments were made in a timely manner
The pricing mechanism for FFB and other services provided to both the mill and the estates was documented. The purchase of FFB was conducted in a fair and transparent manner as evidenced from
(a) The statement on how FFB price was calculated was announced as evidenced during roll call dated 15 July 2011.
(b) The issuance of monthly details on net weight and price per tonne for smallholders by FELDA Palm Industries Sdn Bhd.
(c) Written acknowledgement on the receipt of FFB of each smallholder.
Current and past prices for FFB were publicly available. They were seen displayed on the notice boards of schemes such as FELDA Bukit Kepayang, Mayam and Purun.
Assessment interview confirmed that the smallholders were treated fairly and were happy on their FFB trading with the FELDA Bukit Kepayang POM. The prices offered by the mill had followed the MPOB‟s guidelines. Payments were prompt as told by those smallholders of FELDA Bukit Kepayang, Mayam and Purun interviewed.
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There was also a mutually agreed and documented system for dealing with complaints and grievances, both within the scheme as well as with the mill (cross reference to C6.3). The FBKCUs‟ Manager gathered information from the field from various stakeholders on a regular basis through meetings (as indicated in meeting minutes) and issues related to this criterion were addressed.
Those settlers who still owed FELDA, monthly deductions against the FFB sold, as spelt out in the Consolidated Annual Charges (CoC) were made to offset the monetary advances and their land development cost made by FELDA. The debt repayments scheme was fully transparent.
Criterion 6.11 Growers and millers contribute to local sustainable development wherever appropriate.
Indicator: 6.11.1 Demonstrable contributions to local development that are based on the results of consultation with local communities. Minor compliance
Guidance: Contributions to local development should be based on the results of consultation with local communities. See also Criterion 6.2. Such consultation should be based on the principles of transparency, openness and participation and should encourage communities to identify their own priorities and needs, including the different needs of men and women.
Where candidates for employment are of equal merit, preference should always be given to members of local communities in accordance to national policy. Positive discrimination should not be recognized as conflicting with Criterion 6.8.
Specific National Guidance for Scheme and Independent Smallholders Scheme Smallholders Scheme Managers are encouraged to contribute to local development based on consultation with local communities.
Findings:
The CU had initiated consultations with the local communities as well as neighboring external communities. This was evident from the records being kept on social impact assessments. Information obtained was used to work out a social management plan, which had helped contributed to local social development.
The below examples were extracted from SIA report entitled Laporan Penilaian Impak Sosial Kompleks Bukit Kepayang and how problems were subsequently mitigated.
Example 1: To mitigate the problems of cows damaging agricultural crops, the following steps were planned for 2011 in Bukit Kepayang scheme.
a) January-March: Warning to cow owners b) April-June: reminder to cow owners & reminder displayed at Felda office c) July-September : action taken on cow owners who ignored warning and reminder d) October-December: Advice given and awareness raising e) Actions taken in 2011:
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1. Eight sign boards put up in strategic locations (see Photo 43), 2. Two banners (Dilarang Binatang Ternakan Berkeliaran Dalam Kawasan Kampung) (see Photo 44), 3. Reminder letter sent, 4. During monthly roll call for all settlers, the settlers rearing cows were reminded to take care of their cows (laporan program roll-call dated 8 December 2011).
f) Overall impact (as at December 2011): Problem reduced.
Photo 43: One of the eight signboards prohibiting cows in the area
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Photo 44: Banner showing cows not allowed to be strayed in the village
Example 2: To mitigate the problem of FFB loss, the following steps were planned for 2011 in Mayam scheme.
a) January-March: scheme management and RELA to cooperate in monitoring theft. b) April-June: Awareness raising among the settlers and family members to cooperate with scheme management to mitigate this problem c) July-September : JKKR meeting to emphasize the importance of cooperation to reduce this problem d) October-December: Further awareness raising among TKA (Tenaga Kerja Asing) e) Actions taken: 1. Field gate closed after 5pm vs. no closing time before this, 2. Monitoring by all heads of blocks who were given special incentives, 3. Reminder during monthly JKKR meetings (meeting minutes of JK Tanam Semula Felda & FTPSB Mayam 8/2011 dated 23 August 2011). f) Impact: Loss of fruits reduced.
Also regular consultations with the local internal and external communities had assisted the FELDA Schemes in its efforts to contribute to local development such as providing more jobs and improved amenities.
An example was job openings that were made available to any qualified person regardless of his/her socio-cultural, political or gender background. This was evidenced in the announcement on vacancy for the post of Juruteknik Awam (contract) dated 30 November 2011 where the opportunity was open to all.
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Another example was the agreement with FELDA on the use of access road as evidenced in
(a) Perjanjian Persefahaman Menggunakan Jalan Pertanian Dalam Ladang FELDA Mayam dated 11 October 2011. (b) Perjanjian Persefahaman Menggunakan Jalan Pertanian Dalam Ladang FELDA Bukit Kepayang dated 11 October 2011.
PRINCIPLE 7: RESPONSIBLE DEVELOPMENT OF NEW PLANTINGS
Criterion 7.1 A comprehensive and participatory independent social and environmental impact assessment is undertaken prior to establishing new plantings or operations, or expanding existing ones, and the results incorporated into planning, management and operations.
Indicators: 7.1.1 An independent and participatory social and environmental impact assessment (SEIA) to be conducted and documented (Cross ref. to C 7.2, 7.3, 7.4, 7.5, 7.6). Major compliance
Specific Guidance: SEIAs to include previous land use / history and involve independent consultation as per national and state regulations, via participatory methodology which includes external stakeholders.
For Sabah, slopes 25 degrees and above are considered high risk erosion areas and cannot undergo replanting unless specified in the EIA report [Environment Impact Assessment (Order 2005)] and approved by the Environmental Protection Department (EPD).
For Sarawak, steep slopes are considered high risk erosion areas and cannot undergo replanting unless specified in the EIA report [Natural Resources and Environment (Prescribed Activities) Order 1994] and approved by the Natural Resources and Environment Board (NREB).
7.1.2 The results of the SEIA to be incorporated into an appropriate management plan and operational procedures developed, implemented, monitored and reviewed. Minor compliance Findings: 7.1.3 Where the development includes smallholder schemes of above 500ha in total, the impacts and implications of how it is managed should be documented and a plan to manage the impacts produced. The assessmentMinor compliance team has verified that Principle 7 is not applicable to FBKCU CU
Guidance: The terms of reference should be defined and impact assessment should be carried out by accredited independent experts, in order to ensure an objective process. Both should not be done by the same body. See also C 5.1 and C 6.1.
This indicator is not applicable to development of smallholder schemes below 500ha.
For Sabah, new planting or replanting of area 500ha or more requires EIA. For areas below 500ha but above 100ha, proposal for mitigation measures (PMM) is required. For Sarawak, only new planting of area 500ha and above requires EIA. Onus is on the company to report back to the DOE on the mitigation efforts being put in place arising out of the EIA.
Assessment of above and below ground carbon storage is important but beyond the scope of an EIA. Note: This aspect will be considered by an RSPO Greenhouse Gas Working Group.
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Findings:
The assessment team had verified that Principle 7 was not applicable to FBKCU.
Criterion 7.2 Soil surveys and topographic information are used for site planning in the establishment of new plantings, and the results are incorporated into plans and operations.
Indicators: 7.2.1 Soil suitability maps or soil surveys adequate to establish the long-term suitability of land for oil palm cultivation should be available. Major compliance
7.2.2 Topographic information adequate to guide the planning of drainage and irrigation systems, roads and other infrastructure should be available. Minor compliance
Guidance: These ivities may be linked to the SEIA (C7.1) but need not be done by independent experts.
Soil surveys should be adequate to establish the long-term suitability of land for oil palm cultivation. Soil suitability maps or soil surveys should be appropriate to the scale of operation and should include information on soil types, topography, soil depth, moisture availability, stoniness, fertility and long-term soil sustainability. Soils unsuitable for planting or those requiring special treatment should be identified.
This information should be used to plan planting programmes, etc. Measures should be planned to minimise erosion through appropriate use of heavy machinery, terracing on slopes, appropriate road construction, rapid establishment of cover, protection of riverbanks, etc.
Findings:
The assessment team had verified that Principle 7 was not applicable to FBKCU.
Criterion 7.3 New plantings since November 2005, have not replaced primary forest or any area required to maintain or enhance one or more High Conservation Values.
Indicators: 7.3.1 A HCV assessment, including stakeholder consultation, is conducted prior to any conversion. Major compliance
Guidance: HCV assessments to be documented and included as part of the SEIA (C7.1). Reference should be made to EIA to indicate the extent of the HCV areas as determined by relevant experts, with priority given to the locals.
This criterion applies to forests and other vegetation types. This applies irrespective of any changes in land ownership or farm management that have taken place after this date. High Conservation Values (HCVs) may be identified in restricted areas of a landholding, and in such cases new plantings can be planned to allow the HCVs to be maintained or enhanced.
Specific Guidance to the above indicator are listed below:
1. New plantings within Nov 05 and Nov 07 must be in compliance with existing regulatory requirements that relate to social and environmental impacts assessment i.e. SEIA (ref.C7.1) and also comply with the legalized land spatial planning.
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2. Where it can be proven that the land did not contain HCV after Nov 2005, the land can enter the RSPO certification programme.
3. Where the HCV status of the land is unknown and/or disputed, the land will be excluded from the RSPO certification programme, until an acceptable solution for HCV compensation has been developed.
4. Companies owning such land can enter other estates in the programme.
This arrangement is valid only for land development between Nov 05 and Nov 07 which was the RSPO P&C initial pilot implementation period.
7.3.2 No conversion of Environmentally Sensitive Areas (ESAs) to oil palm as per Peninsular Malaysia‟s National Physical Plan (NPP) and Sabah Forest Management Unit under the Sabah Forest Management License Agreement. Major compliance
Specific Guidance:
ESA rankings and management criteria as per the NPP are listed in Appendix 3.
7.3.3 No new plantings on floodplains (reference to be made to State DID). Major compliance
7.3.4 Dates of land preparation and commencement are recorded.
Findings:
The assessment team had verified that Principle 7 was not applicable to FBKCU.
Criterion 7.4 Extensive planting (to be determined by SEIA) on steep terrain, and/or on marginal and fragile soils, is avoided.
Indicators: 7.4.1 All new plantings should not be cultivated on land more than 300m above sea level and on land more than 25 degrees slope unless specified by local legislation (Ref: MSGAP Part 2: OP 4.4.1.3 & 4.4.1.4) Major compliance
7.4.2 Where planting on fragile and marginal soils is proposed, plans shall be developed and implemented to protect them without incurring adverse impacts (e.g. hydrological) or significantly increased risks (e.g. fire risk) in areas outside the plantation. Minor compliance
Guidance: This activity should be subjected to a comprehensive EIA as required by C 7.1. Marginal and fragile soils, including excessive gradients and peat soils, should be identified prior to conversion to plantation.
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Findings:
The assessment team had verified that Principle 7 was not applicable to FBKCU.
Criterion 7.5 No new plantings are established on local peoples‟ land without their free, prior and informed consent, dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions.
Indicator: 7.5.1 This activity should be integrated with SEIA required by C 7.1 Major compliance
Guidance: Where new plantings are considered to be acceptable, management plans and operations should maintain sacred sites. Agreements with local communities should be made without coercion or other undue influence (see guidance for C 2.3) Relevant stakeholders include those affected by or concerned with the new plantings. Refer also to C 2.2, 2.3, 6.2, 6.4 and 7.6 for indicators of compliance. Findings:
The assessment team had verified that Principle 7 was not applicable to FBKCU CU
Criterion 7.6 Local people are compensated for any agreed land acquisitions and relinquishment of rights, subject to their free, prior and informed consent and negotiated agreement.
Indicators: 7.6.1 Documented identification and assessment of legal and customary rights. Major compliance
Specific Guidance: Auditors to be aware of land acquisition in relation to native customary land. 7.6.2 Establishment of a system for identifying people entitled to compensation. Major compliance 7.6.3 This activity should be integrated with the SEIA required by C 7.1. Major compliance 7.6.4 Establishment of a system for calculating and distributing fair compensation (monetary or otherwise). Major compliance 7.6.5 The process and outcome of any compensation claims should be documented and made publicly available. Major compliance 7.6.6 Communities that have lost access and rights to land for plantation expansion are given opportunities to benefit from plantation development. Minor compliance
Guidance: Refer also to C 2.2, 2.3 and 6.4 and associated guidance. This requirement includes indigenous peoples.
Findings:
The assessment team had verified that Principle 7 was not applicable to FBKCU.
Criterion 7.7 Use of fire in the preparation of new plantings is avoided other than in specific cases as identified in the ASEAN Guidance or other regional best practice.
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Indicators: 7.7.1 No evidence of clearing by burning. This activity should be integrated with the SEIA required by C 7.1 Major compliance 7.7.2 Evidence of approval for controlled burning, as per Environmental Quality (Declared Activities) (Open Burning) Order 2003. Major compliance
Findings:
The assessment team had verified that Principle 7 was not applicable to FBKCU.
PRINCIPLE 8: COMMITMENT TO CONTINUOUS IMPROVEMENT IN KEY AREAS OF ACTIVITY
Criterion 8.1 Growers and millers regularly monitor and review their activities and develop and implement action plans that allow demonstrable continuous improvement in key operations.
MY NIWG commits to demonstrate progressive improvement to the following but not limited to:
8.1.1 Minimise use of certain pesticides (C4.6) Major compliance
8.1.2 Environmental impacts (C5.1) Major compliance
8.1.3 Maximizing recycling and minimizing waste or by-products generation. Major compliance
Specific Guidance: To work towards zero-waste (C5.3)
8.1.4 Pollution prevention plans (C5.6) Major compliance
8.1.5 Social impacts (C6.1) Major compliance
8.1.6 A mechanism to capture the performance and expenditure in social and environmental aspects. Minor compliance
Guidance: Specific minimum performance thresholds for key indicators should be established. (See also C 4.2, 4.3, 4.4, and 4.5).
Growers should have a system to improve practices in line with new information and techniques and a mechanism for disseminating this information throughout the workforce.
For smallholders, there should be systematic guidance and training for continuous improvement.
Specific National Guidance for Scheme and Independent Smallholders Scheme Smallholders Scheme Managers should develop an action plan for continual improvement in a participatory manner with their organized smallholder representatives, based on consideration of the main social and environmental impacts and opportunities for improvement.
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Findings: Generally, FBKCU had established a system to regularly monitor and review their key activities at the estates, and then initiate action plans for continuous improvement.
Evidences sighted include the commitment to minimize the use of certain pesticides by implementing IPM. Other improvement plans include efforts to assess the social impacts and actions have been taken to minimize adverse impacts as well as to increase the awareness of workers on 3R‟s initiatives (i.e. reduce, reuse, recycle) as part of their work and living culture.
4.0 Comments from Stakeholders
Stakeholder consultations were conducted as part of the Stage 2 assessment. The summary of the comments from stakeholders is given in Attachment 5.
5.0 Assessment Recommendation
Based on the evidence gathered during the on-site visits it can be concluded that FELDA Bukit Kepayang Certification Unit has conformed to the requirements of the RSPO Principles and Criteria for Sustainable Palm Oil Production, including smallholder, Malaysia National Interpretation Working Group (MYNIWG) November 2010.
Therefore, the assessment team recommends FELDA Bukit Kepayang Certification Unit to be certified against RSPO Principles and Criteria for Sustainable Palm Oil Production, including smallholder, Malaysia National Interpretation Working Group (MYNIWG) November 2010.
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Attachment 1a
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Location Map for FELDA Bukit Kepayang Certification Unit in Pahang, Malaysia Attachment 1b
1 2
3 4
1. FP Terapai 3 2. Felda/FTP Purun 3. Felda/FTP Mayam 4. Felda/FTP Bkt.Kepayang
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Attachment 1c
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Attachment 1d
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Attachment 1e
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Attachment 1f
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Attachment 2
SIRIM QAS INTERNATIONAL SDN. BHD.
RSPO STAGE 2 ASSESSMENT PLAN
1. Objectives The objectives of the assessment are as follows: (i) To evaluate FASSB Kompleks Kilang Bukit Kepayang conformance against the RSPO Principles & Criteria Malaysian National Interpretation (MYNI) (ii) To make appropriate recommendations based on the assessment findings
2. Date of assessment : 27th December 2011 to 29th December 2011
3. Site of assessment : FELDA Palm Industries Sdn Bhd Kilang Sawit Bukit Kepayang, 28300 Triang, Pahang Darul Makmur FELDA Certification Unit – Bukit Kepayang Palm Oil Mill Complex . FELDA Plantation Terapai 3, d/a FELDA Mayam, 28300 Triang,Pahang . FELDA Bukit Kepayang, Pejabat FELDA Bukit Kepayang, 28200 Bera, Pahang . FELDA Purun, Pejabat FELDA Purun, 28300 Triang, Pahang . FELDA Mayam, Pejabat FELDA Mayam, 28200 Bera, Pahang
4. Scope of certification : Bukit Kepayang Palm Oil Mill and its Supply Bases
5. Reference Standard : RSPO P&C MYNI:2008 Company‟s audit criteria including Company‟s Manual/Procedures
6. Assessment Team a. Lead Assessor : Hj Mahzan Munap (3 days) b. Assessor : Hj Abdul Aziz Abu Bakar (3 days) : Sew Shuh Ping (2nd and 3rd day only) Dr. Lim Hin Fui (2nd and 3rd day only) Khairul Najwan B Ahmad Jahari (3days) c. Observer : Che Roshaya Ab Rahman (3 days) : Mohamed Hidhir Zainal Abidin (3 days)
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If there is any objection to the proposed audit team, the organization is required to inform the Lead Assessor/RSPO Section Manager.
7. Audit Method Site audits including observation of practices, interviews with interested parties (employees, nearby population, etc.), documentation evaluation and evaluation of records.
8. Confidentiality Requirements SIRIM QAS International shall not disclose any information concerning the company regarding all matters arising or coming to its attention with the conduct of the programme, which is of confidential in nature other than information, which is in the public domain.
In the event that there be any legal requirements for disclosing any information concerning the organization, SIRIM QAS International shall inform the organization of the information to be disclosed.
8. Working Language : English and Bahasa Malaysia
9. Reporting a) Language : English b) Format : Verbal and written c) Expected date of issue : Thirty days after the date of assessment d) Distribution list : client file
10. Facilities Required Room for discussion Relevant document and record Personnel protective equipment if required Photocopy facilities A guide for each assessor
11. Assessment Programme Details : As shown below
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Day 1: 27th December 2011 (Tuesday)
Time Activities / areas to be visited Auditee 8.00 a.m. - Opening Meeting –FELDA Palm Industries Sdn Bhd Office, Bukit Kepayang. Audit team introduction and briefing on 8.30 a.m. assessment objectives, scope, methodology, criteria and programmes by SIRIM QAS Audit Team Leader.
8.30 a.m .– Briefing on the organization background and implementation of RSPO at Bukit Kepayang Palm Oil Mill Complex Certification Management 9.20 a.m. Unit (including actions taken to address Stage I assessment findings) by FELDA Management Representative. Representative
Logistics discussion to the sites to be visited. Each assessor is to be provided with a FELDA transportation and Guide at Management each project site as each of the assessor will go separate ways. Representative
Mahzan B Munap Abd Aziz Abu Bakar Khairul Najwan
9.20 a.m. - Travel to FELDA Plantations Terapai 3. Overview of current activities at FELDA Plantations Terapai 3. by Plantation Plantatione 10.00 a.m. Manager. Manager
10.00 a.m. Documentation and records review at FELDA Plantations Terapai 3 office by each assessor in his areas of expertise Guide(s) for – 1.00 p.m. (including verification on action taken to address Stage 1 assessment findings). each assessor
FELDA Plantations Terapai 3 FELDA Plantations Terapai 3 FELDA Plantations Terapai 3
Coverage of assessment: Coverage of assessment: Coverage of assessment: P1, P2,(C2.1), P3, P4 (C4.1, C4.7, P2 (C2.2.2), P3, P4 (C4.1 -C4.6, C4.8), P2 (C2.1, I2.2.3), P3, P4 (C4.1, C4.3, C4.8), P8 P5 (C5.1), ,P7 (C7.2, C7.4, C7.7), P8 C4.4, C4.8), C5.2, P7 (C7.2 -C7.4), P8 Guide(s) for each assessor Follow up from Stage 1 Follow up from Stage 1 Follow up from Stage 1 assessment findings. assessment findings. assessment findings. Commitments to Laws and regulations Laws and regulations transparency Commitment to long-term Replanting on sloping land Laws and regulations economic and financial viability must be in compliance with Commitment to long-term Good Agricultural Practice- witness MSGAP Part 2: OP (4.4.2.2) economic and financial viability activities at site (weeding/ spraying, Inspection of protected sites with Safety & Health practice – etc) HCV attributes witness activities at site EFB mulching, POME application Forested area
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Hazard identification and Risk Nursery (if any) Plantation Boundary, adjacent Management Chemical store/fertilizer and neighbouring land use Chemical management Plantation on hilly/swampy area Riparian zone Chemical/ fertilizer store, IPM implementation, training and safe River system and Water bodies workshop use of agro-chemicals. Source of water supply Interview with workers , Riparian zone New planting safety committee and contractors River system and Water bodies Continuous improvement Facilities at workplace (water Management and disposal of waste treatment plant, clinic & etc) including pesticides containers Training and skill New planting Other area identified during the development programmes Continuous improvement assessment Local sustainable
development
Continuous improvement Other area identified during the assessment Other area identified during the assessment
1.00 p.m. LUNCH BREAK and SHOLAT All 2.00p.m. - Continue assessment Guide(s) for Continue assessment Continue assessment 5.30 p.m. Continue assessment each assessor 5.30 p.m.- End of Assessment. Travel to Temerloh and check-in at hotel All 7.00 p.m. 8.00 p.m.– DINNER 9.00 p.m. 9.00 p.m. Assessment team discussion and verification on any outstanding issues. All Auditors 10.00 p.m. Note : Assessor to inform auditee on the required document / records.
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Day 2: 28th December 2011 (Wednesday)
Time Activities / areas to be visited Auditee Mahzan B Munap Sew Shuh Ping Abd Aziz Abu Bakar Khairul Najwan Dr. Lim Hin Fui 8.00 a.m. – Overview of current activities at Ladang FELDA Bukit Kepayang. Office by Plantation Manager for Hj Mahzan and Pn. Ruzita. Respective 9.00 a.m. Scheme Overview of current activities at Ladang FELDA Mayam Office by Plantation Manager for Hj Aziz, Dr. Lim and En. Najwan Manager
9.00 a.m. – Documentation and records review at Ladang FELDA Bukit Kepayang.and Ladang FELDA Mayam office by each assessor Guide(s) for 12.45 p.m. in his areas of expertise (including verification on action taken to address Stage 1 assessment findings). each assessor
Ladang FELDA Bukit Ladang FELDA Bukit Ladang FELDA Mayam Ladang FELDA Mayam Ladang FELDA Mayam Kepayang Kepayang Coverage of Coverage of Coverage of Coverage of Coverage of assessment: assessment: assessment: P1(C1.2), Guide(s) for assessment: assessment: P2 (C2.2.2), P3, P4 P2 (C2.1, I2.2.3), P3, P2(C2.1- C2.3), P3, P6 each assessor P1, P2,(C2.1), P3, P1(C1.2), P2 (C2.1), (C4.1 -C4.6, C4.8), P5 P4 (C4.1, C4.3, C4.4, (C6.1 – C6.11), P7 P4 (C4.1, C4.7, P3, P4 (C4.1, C4.8), (C5.1), ,P7 (C7.2, C4.8), C5.2, P7 (C7.2 - (C7.1, C7.4, C7.5, C4.8), P8 P5(C5.1,C5.3-C5.6), C7.4, C7.7), P8 C7.4), P8 C7.6), P8 P6(C6.11), P7(C7.1, Follow up C7.7), P8 Follow up from Follow up from Follow up from from Stage 1 Stage 1 assessment Stage 1 assessment Stage 1 assessment assessment Follow up from findings. findings. findings. findings. Stage 1 assessment Laws and Laws and Commitment findings. regulations regulations Discussion with s to transparency Laws and Commitment to Replanting on relevant management Laws and regulations long-term economic sloping land must (CSR, community regulations Commitment to and financial viability be in compliance affairs) and view Commitment long-term economic Good Agricultural with MSGAP Part documentation such as EIA, SIA, assessment to long-term and financial viability Practice- witness 2: OP (4.4.2.2) economic and Facilities at activities at site and management Inspection of financial viability workplace (water (weeding/ spraying, plans. protected sites with treatment plant, clinic etc) Laws and Safety & HCV attributes Health practice – & etc) EFB mulching, POME regulations Forested area witness activities at Aspects/impact application Land titles user Plantation site s of plantation Nursery (if any) rights Boundary, adjacent Hazard management Local Chemical and neighbouring identification and Waste communities and store/fertilizer land use Risk Management management stakeholders Plantation on Riparian zone
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Chemical including disposal hilly/swampy area River system Interview with management site IPM implementation, and Water bodies Union Chemical/ Line site training and safe use Source of representatives fertilizer store, Interview local of agro-chemicals. water supply Workers workshop communities and Riparian zone New planting Issues Interview stakeholders River system Continuous Facilities at with workers , Recycling and Water bodies improvement workplace (rest area, safety committee activities Management and etc) and contractors Controlled/ope disposal of waste Line site Facilities at n burning including pesticides Other area identified Facilities workplace (water Pollution containers during the assessment provided at line site treatment plant, mitigating plans New planting (i.e. mosque, surau, clinic & etc) Local Continuous community center, Training and sustainable improvement GPW, Tadika, skill development development provision shop & etc) programmes New planting New planting Other area identified Local Continuous Continuous during the assessment sustainable improvement improvement development Continuous Other area identified improvement Other area identified during the assessment during the assessment Other area identified
during the assessment 12.45 p.m. LUNCH BREAK and SHOLAT All 1.45- 2.15 Overview of current activities at Bukit Kepayang Palm Oil Mill Office by Mill Manager for Hj Mahzan and Pn. Ruzita. Mill Manager p.m and FELDA Overview of current activities at Ladang FELDA Bukit Kepayang Office by Plantation Manager for Hj Aziz, Dr. Lim and En. Bukit Kepayang Najwan. Scheme Manager 2.15pm - Documentation and records review at Bukit Kepayang Palm Oil Mill office and Ladang FELDA Bukit Kepayang. office by each Guide(s) for 5.30 pm assessor in his areas of expertise (including verification on action taken to address Stage 1 assessment findings). each assessor
Bukit Kepayang Bukit Kepayang Palm Ladang FELDA Bukit Ladang FELDA Bukit Ladang FELDA Bukit Guide(s) for Palm Oil Mill Oil Mill Kepayang Kepayang Kepayang each assessor
Follow up Coverage of Coverage of Coverage of Coverage of from Stage 1 assessment: assessment: assessment: assessment: P1(C1.2), assessment P1(C1.2), P2 (C2.1), P2 (C2.2.2), P3, P4 P2 (C2.1, I2.2.3), P3, P2(C2.1- C2.3), P3, P6
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findings. P3, P4 (C4.1, C4.8), (C4.1 -C4.6, C4.8), P5 P4 (C4.1, C4.3, C4.4, (C6.1 – C6.11), P7 Commitment P5(C5.1,C5.3-C5.6), (C5.1), ,P7 (C7.2, C4.8), C5.2, P7 (C7.2 - (C7.1, C7.4, C7.5, s to transparency P6(C6.11), P7(C7.1, C7.4, C7.7), P8 C7.4), P8 C7.6), P8 Laws and C7.7), P8 regulations Follow up from Follow up from Follow up from Commitment Follow up from Stage 1 assessment Stage 1 assessment Stage 1 assessment to long-term Stage 1 assessment findings. findings. findings. economic and findings. Laws and Laws and financial viability Laws and regulations regulations Discussion with Safety & regulations Commitment to Replanting on relevant management Health practice – Commitment to long-term economic sloping land must (CSR, community witness activities at long-term economic and financial viability be in compliance affairs) and view site and financial viability Good Agricultural with MSGAP Part documentation such as EIA, SIA, assessment Hazard Facilities at Practice- witness 2: OP (4.4.2.2) workplace (water activities at site and management identification and Inspection of treatment plant, clinic (weeding/ spraying, plans. Risk Management protected sites with & etc) etc) Laws and Chemical HCV attributes Aspects/impact EFB mulching, POME regulations management Forested area s of plantation application Land titles user Chemical/ Plantation management Nursery (if any) rights fertilizer store, Boundary, adjacent Waste Local workshop Chemical and neighbouring management communities and Interview store/fertilizer land use including disposal stakeholders with workers , Plantation on Riparian zone safety committee site hilly/swampy area Interview with River system and contractors Line site Union IPM implementation, and Water bodies Facilities at Recycling training and safe use representatives Source of workplace (water activities of agro-chemicals. Workers water supply treatment plant, Controlled/ope Riparian zone Issues New planting clinic & etc) n burning River system Facilities at Continuous Training and Pollution and Water bodies workplace (rest area, improvement skill development mitigating plans etc) Management and programmes Local Line site disposal of waste Local sustainable including pesticides Facilities sustainable development containers Other area identified provided at line site during the assessment development New planting New planting (i.e. mosque, surau,
Continuous Continuous Continuous community center, improvement improvement improvement GPW, Tadika, provision shop & etc) Other area identified New planting during the Other area identified Other area identified
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assessment during the assessment during the assessment Continuous improvement
Other area identified during the assessment 5.30 p.m. End of Assessment. Travel back to Hotel in Temerloh All 7.00 p.m. 8.00 p.m.– DINNER 9.00 p.m. 9.00 p.m. Assessment team discussion and verification on any outstanding issues. All Auditors 10.00 p.m. Note : Assessor to inform auditee on the required document / records.
Day 3: 29th December 2011 (Thursday)
Time Activities / areas to be visited Auditee Mahzan B Munap Sew Shuh Ping Hj Abdul Aziz Abu Bakar Khairul Najwan Dr. Lim Hin Fui 8.00 a.m. – Overview of current activities at Bukit Kepayang Palm Oil Mill Office by Mill Manager for Dr. Lim Mill 9.00 a.m. Manager Overview of current activities at Ladang FELDA Purun Office by Plantation Manager for Hj Mahzan, Hj. Aziz, and En. Najwan and FELDA Purun Scheme Manager
9.00 a.m. – Documentation and records review at Bukit Kepayang Palm Oil Mill office and Ladang FELDA Purun. office by each assessor Site 12.30 p.m. in his areas of expertise (including verification on action taken to address Stage 1 assessment findings). Manager Guide(s) for each assessor Ladang FELDA Ladang FELDA Ladang FELDA Purun Ladang FELDA Bukit Kepayang Palm Oil Guide(s) for Purun Purun Purun Mill each Coverage of assessment: assessor Follow up Coverage of P2 (C2.2.2), P3, P4 (C4.1 - Coverage of Coverage of assessment: from Stage 1 assessment: C4.6, C4.8), P5 (C5.1), ,P7 assessment: P1(C1.2), P2(C2.1- assessment P1(C1.2), P2 (C7.2, C7.4, C7.7), P8 P2 (C2.1, I2.2.3), P3, C2.3), P3, P6 (C6.1 – findings. (C2.1), P3, P4 P4 (C4.1, C4.3, C6.11), P7 (C7.1, C7.4, Commitmen (C4.1, C4.8), Follow up from C4.4, C4.8), C5.2, C7.5, C7.6), P8 ts to transparency P5(C5.1,C5.3- Stage 1 assessment P7 (C7.2 -C7.4), P8 Laws and C5.6), P6(C6.11), findings. Follow up from
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regulations P7(C7.1, C7.7), P8 Laws and Follow up Stage 1 assessment Commitmen regulations from Stage 1 findings. t to long-term Follow up Commitment to assessment economic and from Stage 1 long-term economic and findings. Discussion with relevant financial viability assessment financial viability Laws and management (CSR, Safety & findings. Good Agricultural regulations community affairs) and Health practice – Laws and Practice- witness activities Replanting view documentation such witness activities regulations at site (weeding/ spraying, on sloping land as EIA, SIA, assessment at site Commitmen etc) must be in and management plans. Hazard t to long-term EFB mulching, POME compliance with Laws and regulations identification and economic and application MSGAP Part 2: Risk Management financial viability Land titles user Nursery (if any) OP (4.4.2.2) Chemical Facilities at rights Chemical Inspection of management workplace (water Local store/fertilizer protected sites with Chemical/ treatment plant, communities and Plantation on HCV attributes fertilizer store, clinic & etc) stakeholders hilly/swampy area Forested workshop Aspects/im Interview with IPM implementation, area Interview pacts of plantation Union representatives training and safe use of Plantation with workers , management Workers Issues agro-chemicals. Boundary, adjacent safety committee Waste Facilities at Riparian zone and neighbouring and contractors , management workplace (rest area, River system and land use local communities including disposal etc) Water bodies Riparian and stakeholders site Line site Management and zone Facilities at Line site Facilities disposal of waste River system workplace (water Recycling provided at line site (i.e. including pesticides and Water bodies treatment plant, activities mosque, surau, containers Source of clinic & etc) Controlled/o community center, New planting water supply Training pen burning GPW, Tadika, provision Continuous New planting and skill Pollution improvement shop & etc) development mitigating plans Continuous New planting improvement programmes Local Continuous Other area identified during Waste sustainable improvement the assessment management development including disposal New Other area identified Other area identified site planting during the during the assessment Line site Continuous assessment Recycling improvement activities Controlled/o Other area
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pen burning identified during the Local assessment sustainable development Continuous improvement Other area identified during the assessment 12.30 p.m. All except Leave FELDA Purun for Bukit Kepayang Palm Oil Mill Dr. Lim and his guide 1.00 p.m. LUNCH BREAK and SHOLAT All 2.00 p.m. – Verification on outstanding issues for,FELDA Certification Unit – Bukit Kepayang Palm Oil Mill Complex All Auditors 4.00 p.m. Assessor to inform auditee on the required document / records Continue Audit Team discussion and preparation of assessment findings.
4.00 p.m. – Discussion and acceptance on assessment findings with Management Representative and visited site Plantation / Scheme Auditors, 4.30 p.m. Manager Mill and Plantation / Scheme Managers 4.30 pm – Closing meeting at FELDA Palm Industries Sdn Bhd Office, Bukit Kepayang – presentation of FELDA Certification Unit – Bukit All 5.00 pm Kepayang Palm Oil Mill Complex assessment findings
5.00 pm End of assessment All
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Attachment 3
LIST AND COMMENTS FROM STAKEHOLDER
List of Stakeholders Comment highlighted* Verification A : Government Agencies/Service Provider District and Land Office, District of Bera No issue None The Islamic Religious Department, District of Bera No issue None The Police Headquarters, District of Bera The Police requested details of Foreign FELDA had submitted the requested list Workers, that is, number at each to the Police Station Rancangan/Mill, Nationality, etc. The Public Works Department, District of Bera No issue None The Water Supply Department, District of Bera No issue None The Drainage and Irrigation Department, District of Bera No issue None The Fire and Rescue Station, District of Bera No issue None The Information Office, District of Bera No issue None The Education Office, District of Bera No issue None The Health Clinic, District of Bera No issue None The Office of Youth and Sports, District of Bera No issue None The Agricultural Office, District of Bera No issue None The Volunteer Corps (RELA) Office, District of Bera No issue None The Office of Aboriginal Affairs, District of Bera No issue None The Office of Social Welfare, District of Bera No issue None The Fisheries Office, District of Bera No issue None The Office of Veterinary Services, District of Bera No issue None The (Rubber Industry Smallholders Development Authority) No issue None RISDA Office, District of Bera The Federal Agricultural and Marketing Authority (FAMA) Office, No issue None District of Bera
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The Office of Wildlife and National Park, District of Bera Positive comments from Wildlife To verify during the Annual Surveillance Department: Assessment 1 if all the comments a) To report if any wilidlife highlighted by Wildlife Department had encroachment sighted; been actioned. b) To inform if any replanting being planned so that precautioanry measures to prepare on wildlife encroachment can be taken; c) To invite them to attend Awareness or Biodiversity Assessment Program if conducted; d) Would like to conduct the biodiversity inventory at the sensitive areas at the Kompleks Felda Wilayah Mempaga; e) Would like to invite Felda Kepayang to visit Wildlife Conseration Centre and Biodiversity Institute. The Meteorological Department Office, District of Temerloh/Bera No issue None The Forestry Department, District of Temerloh/Bera a) No issue or comments from Pahang a) Stakeholder consultation had been State Forest Department. No made with the Distrirct Forest Officer encroachment or illegal activities on 20th December 2011 to confirm from the Felda communities at the the communication to the Kepayang Forest Reserve. CU., but not on the usage of water as b) However, there was comment from source for use by FELDA Terapai 3 the Temerloh District on Plantation encroachment near the boundary b) The communication was in place and being planted with rubber trees by there are no major issues with smallholders in Chini and Purun Kepayang CU. Forest Reserve. Disucssion had c) To verify during the Annual been made to resolve the issues. Surveillance Assessment 1 if such c) They would like to be invited in discussion had been held and future discussions to improve their whether the Forestry Department communiction with the communities were invited. involved. d) Forestry Department was aware of d) No action required. logging activites at Papai Forest Reserve and buffer zone had been e) The Kepayang CU had been briefed
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maintained up to 100m to reduce on the compound and fine on the the logging impact on water quality. illegal activities. e) The Forestry Department monitors the boundary to control the encroachment and illegal activities in the forest reserve. The Office of National Anti-Drug Agency, District of Bera No issue None The Office of Municipal Council, District of Bera No issue None TNB Distribution Sdn Bhd, District of Bera No issue None FELCRA Berhad Kaw. Tembangau, Kemayan, Triang No issue None Special Affairs Department, Ministry of Information, No issue None Communication and Culture, (Bera Area), Temerloh Department of Occupational Safety & Health (DOSH), Pahang, No issue None Malaysia. Department of Environment (DOE), (Temerloh Branch), Pahang, No issue None Malaysia. Immigration Department, Temerloh, Pahang, Malaysia. No issue None B. United Nation The Management of RAMSAR Site, Bera No issue None
C. Internal Stakeholders Manager, FELDA Bukit Kepayang, Bera No issue None Manager FELDA Purun, Bera No issue None Manager, FELDA Kumai, Bera No issue None Manager FELDA Plantations Terapai 3, Bera No issue None Manager, FELDA Tementi, Bera No issue None Manager FELDA Sebertak, Bera No issue None Manager, FELDA Rentam, Bera No issue None Manager FELDA Mayam, Bera No issue None
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Manager, FELDA Triang 1, No issue None Manager FELDA Triang 3 No issue None Manager, FELDA Bukit Mendi No issue None Manager, FELDA Bukit Puchong No issue None Manager, FELDA Bukit Mengkuang No issue None Manager ,FELDA Sg. Kemahal No issue None Manager, FELDA Chemomoi No issue None Manager, FELDA Kemasul No issue None Head of Plantation, FELDA Technoplant Sdn Bhd, Mempaga No issue None Region Operations Manager, FELDA Technoplant Sdn Bhd, Mempaga No issue None Region Head, Plantation Unit, FELDA Technoplant Sdn Bhd Bhd Bkt No issue None Puchong / Bkt Mendi Head, Plantation Unit, FELDA Technoplant Sdn Bhd Bhd No issue None Kemasul / Chemomoi Head, Plantation Unit, FELDA Technoplant Sdn Bhd Bhd No issue None Tementi / Rentam Head, Plantation Unit, FELDA Technoplant Sdn Bhd Bhd Kumai No issue None Head, Plantation Unit, FELDA Technoplant Sdn Bhd Bhd Purun No issue None Operations Manager, East Zone 01, FELDA Office, Mempaga No issue None Region Operations Manager, East Zone 02, FELDA Office, Mempaga No issue None Region Manager FELDA Plantations Terapai 04, Bera No issue None Manager FELDA Plantations Triang 02, Bera No issue None Manager FELDA Plantations Triang 04, Bera No issue None Manager FELDA Plantations Bera Selatan 01, Bera No issue None Manager FELDA Plantations Bera Selatan 04, Bera No issue None
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Manager FELDA Plantations Mengkarak 01, Bera No issue None Manager FELDA Plantations Mengkarak 02, Bera No issue None Mill Manager, FELDA Palm Industries Sdn Bhd., Bukit Kepayang No issue None Palm Oil Mil Mill Manager, FELDA Palm Industries Sdn Bhd., Tementi Palm No issue None Oil Mill Mill Manager, FELDA Palm Industries Sdn Bhd., Triang Palm Oil No issue None Mill Mill Manager, FELDA Palm Industries Sdn Bhd., Bukit Mendi No issue None Palm Oil Mill Mill Manager, FELDA Palm Industries Sdn Bhd., Kemasul Palm No issue None Oil Mill Operations Manager, FELDA Palm Industries Sdn Bhd., No issue None Temerloh Region B : Non-Governmental Organizations World Wildlife Fund (WWF), Malaysia No issue None Malaysian Nature Society (MNS), Kuala Lumpur No issue None Sahabat Alam Malaysia No issue None C : Local Communities The Village Head (Penghulu), Mukim Bera I, Kg. Paya Pagar, No issue None Bera The Village Head (Penghulu), Mukim Bera II, Kg. Kuala Bera, No issue None Bera The Tok Batin (Chieftain), Kg. Sg. Taung, Triang No issue None The Tok Batin (Chieftain), Kg. Bukit Rok, Triang No issue None The Tok Batin (Chieftain), Kg. Bukit Gemuruh, Triang No issue None The Tok Batin (Chieftain), Kg. Chuat, Triang No issue None The Aborigines Representative, Kg Durian Kuning, Bera No issue None Klinik Rakyat, Bera No issue None
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D : Other interested parties FELDA Plantations Terapai 3 Estate – workers representatives No issue None FELDA Plantations Terapai 3 Estate – office staff representatives No issue None FELDA Plantations Terapai 3 Estate – chemical store operator No issue None FELDA Plantations Terapai 3 Estate – general workers No issue None FELDA Bukit Kepayang Estate – workers representatives No issue None FELDA Bukit Kepayang Estate – female representatives No issue None FELDA Bukit Kepayang Estate – chemical handler No issue None FELDA Mayam Estate – workers representatives No issue None FELDA Mayam Estate – sprayer No issue None FELDA Mayam Estate – FFB harvesters No issue None FELDA Bukit Kepayang POM – safety & health committee No issue None member FELDA Bukit Kepayang POM – production operator No issue None FELDA Bukit Kepayang POM – female representative No issue None FFB suppliers No issue None
* No issue mean that no response received to the letters sent. Upon following up, the stakeholder informed that they did not have any comment.
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Attachment 4
DETAIL OF NON CONFORMITY AND CORRECTIVE ACTIONS TAKEN
P & C, Classification Detail Non conformance Corrective Action Taken Verification by Assessor Indicators Major / Minor 4.3.1 Major It was observed that at Felda Frond arrangement had been Training planned for April 2012 and Terapai 3, Block 6 , spraying of corrected. Annual training effectiveness of training had yet to be bracken spp on slope had been program regarding harvesting assessed during next audit. The issue carried out and there was and frond cutting had been of spraying bracken and conservation evidence of landslides/soil erosion conducted Side drain has terraces to be followed up during nest . At Felda Terapai 3, Block 23 and been constructed. The issue audit. at Felda Purun blanket spraying of spraying of bracken on on some blocks were also slopes and conservation of Status of NCR: Closed for those observed. terraces not constructed items in black font but open for item had not been addressed. highlighted in red italic font.
4.5.2 Minor The monitoring extents of IPM Monitoring record of barn owl had Evidences of correction taken were implementation for rat control been carried out and request for found acceptable. using barn owl were not additional new barn owl nest had implemented. been made. Status of NCR : Closed.
4.7.1 i Major The FELDA Terapai 3 Field First Aid kit issued to workers. Training plan and relevant record Supervisor could not show Annual First Aid training on submitted were found acceptable. possession of a First Aid box on usage will be given to increase worksite. awareness and understanding To verify that the said training had among workers. been conducted.
Status of NCR: Closed.
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5.2.1 Major There was no consultation record Have consulted with the relevant The record of consultation was sighted with District Forest Officer (Chini District Forest Officer (Chini and verification of the action plans will Forest Reserve) and aborigine Forest Reserve) and aborigine be verified in the next audit stakeholders at Kampung Orang stakeholders at Kampung Orang Asli Bukit Rok bordering with Asli Bukit Rok bordering with Status of NCR: Closed Felda Kepayang Felda Kepayang dated on 19 January 2012 and 11 January 2012 respectively
5.2.2 Major It was found that there was no Have consulted and discussed The reviewed management plan on 11 management plan developed for with respective schemes and January 2012 has been submitted to Bukit Batu and swamp areas project. the auditor. Therefore, the additional (Paya Terapai) at FELDA Management Plan for being Plantation Terapai 3, Orang Asli Refer to the reviewed inadequate has been addressed village at Kg Durian Kuning and management plan dated 11 except for Bukit Batu that require on- Kg Ibam at Felda Mayam and January 2012. site verification to be done during the Felda Bukit Kepayang . next annual surveillance audit. The 1. Bukit Batu and swamp areas record of implementation of the (Paya Terapai) for Felda management plan will be verified in the Plantation Terapai 3 (see 2c ) next audit 2. Kg Durian Kuning for Felda Mayam (see 2b) 3. Kg Ibam for Felda Bkt. Status of NCR: Closed except to Kepayang (see 2a) verify in next audit for Bukit Batu.
5.3.1 Major The FELDA Terapai 3 waste Inventory record had been Relevant records and photographic generation was not in accordance updated, scheduled waste evidences submitted were found to EQA (Scheduled Wastes) labelled, triple rinse training adequate. Regulations 2005. conducted and annual training on handling waste will be given to To verify training on handling waste workers. during next audit.
Status of NCR: Closed
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5.3.2 Minor There is no evidence on Training had been done and Records submitted were found implementation of empty pesticide record of empty container had adequate. container rinsing at Ladang been updated. FELDA Mayam. Status of NCR: Closed
6.5.3 Major Housing condition for the Legal house had been Records submitted were found contractor‟s four Indonesian demolished and letter of order to adequate. workers living in a 2-year old demolish had been given to wooden hut built just outside the Contractor. Contractor had Status of NCR: Closed mill processing area was found to agreed to the letter. be inadequate.
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OPPORTUNITIES FOR IMPROVEMENT
Principle and Details Criteria
P2 Commitment with applicable laws and regulations C2.1 I2.1.1 There is compliance with all applicable local, national and ratified international laws and regulations Evidence of compliance with legal requirements
Though Evaluation of Compliance for Estate has been conducted the comprehensiveness of evaluation to include applicable clauses and sub-clauses was not demonstrated as done by the mill. (All except Mill)
P3 Commitment to long-term economic and financial viability C3.1 There is an implemented management plan that aims to achieve long-term economic and financial viability.
Loose palm oil fruits haves not been promptly and regularly collected yielding in loss of economic value and contributing to high FFA at mill (Bock 7, Terapai 3).
P4 Use of appropriate best practices by growers and millers C4.2 I4.2.3 Practices maintain soil fertility at, or where possible improve soil fertility to, a level that ensures optimal and sustained yield. Monitor the area on which EFB, POME and zero-burn replanting is applied.
Although EFB is utilized for soil fertility improvement but the application could be improved in a systematic manner as recommended by the agronomist. (Purun, Block Felda 1D)
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P4 Use of appropriate best practices by growers and millers C4.7 An occupational health and safety plan is documented, effectively communicated and implemented.
1. Eventhough the Hazard Identification, Risk Assessment and Risk Control has been carried out by the estates, it could be further improved to cover all activities involved. (all estates)
2. The hazards of unguarded bridge has yet to be assessed and documented as (a) one-side of the bridge at block 24 has a missing railing and (b) at block 24 and 25 the bridges‟ railings were not painted at all as well and no warning sign were erected to indicate bridge ahead. (Terapai 3)
3. The hazards of in the field mixing of pre-measured concentrated agrochemicals for dilution with water done by sprayers could be avoided by delivering pre-mix agrochemicals chemicals from the chemicals store. (Block 16 of Terapai 3).
4. Although most containers have labeled but some were found without, e.g. water containers in the field. (Terapai 3)
5. A wheel barrow system is highly encouraged in evacuating crop from flat land as opposed to the hook and carry system as this could be lead to ergonomic issue. (Terapai 3)
6. Domestic waste bin to be provided at Workers Hostel (Terapai 3, Purun and Bukit Kepayang)
7. The incoming FFB lorry could be fitted with safety net and railing of sufficient eight to prevent falling of FFB as it passes through public road. (Mill).
8. Although 2 shower faucets and a locker room have been provided but it is insufficient to cater for 15 workers when returning from work simultaneously to complete the bathing and washing of work clothes within 1 hour.
9. The waste disposal site to be fenced up and sign erected dated with date of opening and closure and a dump site management system to be considered, i.e manner and choose of suitable site, weekly spraying of insecticide, etc.
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P4 Use of appropriate best practices by growers and millers C4.8 I4.8.1 All staff workers, smallholders and contractors are appropriately trained. A training programme (appropriate to the scale of the organization) that includes regular assessment of training needs and documentation, including records of training for employees are kept.
3. Although RSPO Awareness have been attended by Estate and Mill Manager conducted by Mempaga Region office but the cascading of training information to workers and settlers is inadequate as it is done via Roll call (short time vs time spent by Managers).
4. PPE training to be enhanced for sprayers as usage of respirator and work boots were inadequate. (Terapai 3). -
P5 Environmental responsibility and conservation of natural resources and biodiversity C5.1 Aspect of plantation and mill management, including replanting, that have environmental impact are identified, and plans to mitigate the negative impacts promote the positive ones are made, implemented and monitored, to demonstrate continous improvement Documented aspects and impacts risk assessment that is periodically reviewed and updated.
The environment aspect identification and evaluation was done. However, it was found that: 1. error in the calculation of „skor‟ and „tahap‟
2. wrong assignment of significancy e.g. „ketara/ tidak ketara‟ against „tahap‟
P5 Environmental responsibility and conservation of natural resources and biodiversity C5.2 The status of rare, threatened or endangered species (ERTs) and high conservation value habitats, if any, that exists in the plantation or that could be affected by plantation or mill management, shall be identified and their conservation taken I5.2.2 into account in management plans and operations. Management plan for HCV habitats (including ERTs) and their conservation.
The management plan for HCV habitats and their conservation is available. However, the monitoring form needs to be improved and communicated effectively to the managers.
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P6 Responsible consideration of employees and of Individuals and communities by growers and millers C6.1 Aspects of plantation and mill management, including replanting, that have social impacts are identified in a participatory way, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to I6.1.1 demonstrate continuous improvement
A documented social assessment including records of meetings
Social impact assessments have been documented. However, there is a need to assess the impacts of smoke and dust caused by mill operations on the nearby residents, including Orang Asli communities.
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