MSPO CERTIFICATION
INITIAL AUDIT
SUMMARY REPORT
IOI CORPORATION BERHAD
Dynamic Plantations Bhd
(Gomali POM)
Segamat, Johor, Malaysia
Certificate No: INTERTEK MSPO 004A Issued date: 02 Sept 2018 Expiry date: 01 Sept 2023
Audit Type Audit Dates Initial / Stage 2 28 May – 2 Jun 2018 Annual Surveillance - 01 Annual Surveillance - 02 Annual Surveillance - 03 Annual Surveillance - 04 Re-Certification
This report (including any enclosures and attachments) has been prepared for the exclusive use and benefit of the addressee(s) and solely for the purpose for which it was provided. Unless we provide prior written consent, no part of this report should be reproduced, distributed or communicated to any third party. We do not accept liability if this report is used for an alternative purpose from which it was intended, nor do we owe any duty of care to any third party in respect of this report.
Report No.: M 004A/18-1 IOI Corporation Berhad Gomali POM: Initial Audit / Stage 2
TABLE OF CONTENTS
Section Content Page No 1.0 SCOPE OF AUDIT 3 1.1 Introduction 3 1.2 Location (address, GPS and map) mill, estates and hectarage 3 1.3 Description of FFB supply base 3 1.4 Year of plantings and cycle 4 1.5 Summary of Land Use – Conservation and HCV Areas 5 1.6 Other certifications held and Use of MSPO Trademarks 6 1.7 Organizational information/contact person 6 1.8 Tonnages Verified for Certification 7-8 1.9 Abbreviations Used 9 2.0 AUDIT PROCESS 10 2.1 Audit Methodology, Plan & Site Visits 10 2.2 Date of next scheduled visit 10 2.3 Qualifications of the Lead Assessor and Audit Team 10 2.4 Certification Body 10 2.5 Process of Stakeholder Consultation 11-12 3.0 AUDIT FINDINGS 13 3.1 Summary of findings 13-29 3.2 Status of Identified Noncompliance and Corrective Actions, Observations and 29 Identified Positive Elements 4.0 AUDIT CONCLUSION AND RECOMMENDATION 30 4.1 Acknowledgement of Internal Responsibility and Confirmation of Audit Findings 30 4.2 Intertek MSPO Certification Details for the POM 31-32
APPENDICES Appendix A Qualifications of the Lead Assessor and Audit Team 33 Appendix B Audit Plan 34-36 Appendix C Map of POM location 37
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1.0 SCOPE OF AUDIT
1.1 Introduction This Initial Audit was conducted on the Gomali Palm Oil Mill and Estates of IOI Corporation Berhad (hereafter abbreviated as IOI), from 28 May – 2 Jun 2018, to assess the organization’s operations of the Palm Oil Mill and its FFB supplying plantations / estates are in compliance against the MSPO Standard for Palm Oil Mills (MSPO MS 2530-4: 2013).
The Gomali Palm Oil Mill is registered under Dynamic Plantations Bhd and the FFB supply base are made up of estates owned by IOI Corporation Berhad (IOI) and 1 associated outgrower estate.
1.2 Location (address, GPS and map) of Palm Oil Mill and estates Gomali Grouping consists of one (1) palm oil mill, namely Gomali Palm Oil Mill and eleven (11) estates as indicated in Table 1 below, which includes the addresses and GPS locations of the mill and estates. The location maps are provided in Appendix C. Table 1: Address of Palm Oil Mill, Estates and GPS Location GPS Reference Name Address Latitude Longitude
Gomali POM 5th Mile, Jalan Gemas Batu Anam, K.B. No. 2º36’37.68 ” N 102, 85100 Batu Anam, Segamat, Johor, 102º40’45.44” E (Capacity: 90 MT/hour) Malaysia 5th Mile Jalan Gemas Batu Anam, KB. No 102, 85100 Batu Anam, Segamat, Johor, 2º36’48.94” N 1. Gomali Estate Malaysia 102º39’21.12” E
Batu Anam, 85100 Segamat, Johor. 2º36’28.53” N 2. Paya Lang Estate 102º41’41.36” E Batu 5 Jalan Bahau Rompin 72100 Bahau 3. Bahau Estate 2º48’30.75” N Negeri Sembilan 102º26’44.47” E
Bertam Estate, 76100 Durian Tunggal, 4. Bertam Estate 2º17’55.6” N Melaka. 102º17’30.11” E
1 1/2 Miles, Jalan Mentakab, 28600 Karak, 5. Bukit Dinding Estate 3º22’39.8” N Pahang 102º05’31.36” E
Kuala Jelei Estate, 5km Jalan Tampin, 72109 6. Kuala Jelei Estate 2º46’21.56” N Bahau, Negeri Sembilan. 102º22’52.27” E
Tambang Estate, Batu Anam, Segamat, 7. Tambang Estate 2º38’26.33” N 85100 Johor. 102º42’53.17” E
2nd Mile Jalan Batang Melaka 73200 8. Regent Estate 2º30’29.81” N Gemencheh, Negeri Sembilan 102º24’8.23” E
Sagil Estate, 8 Milestone, Jalan Tangkak - 9. Sagil Estate 2º19’33.84” N Segamat, 84900 Tangkak, Johor. 102º38’6.56” E
5km from 15th Mile, Air Merbau Jalan Jasin 10. Jasin Lalang Estate 2º15’4.13” N Bemban, Jasin, Melaka 102º24’44.81” E
Kampung Kuala Gemas, Gemas, Negeri 11. Sembilan Tani Estate 2°38’15.97” N (associated outgrower) Sembilan 102°37’03.81” E
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Report No.: M 004A/18-1 IOI Corporation Berhad Gomali POM: Initial Audit / Stage 2
1.3 Description of FFB supply base
The supply base i.e. FFB sources to the POM at Gomali Grouping PMU are from the abovementioned 11 estates of which 10 are owned by IOI whilst the Sembilan Tani Estate is owned by an Associated Outgrower. Verification done on site during current assessment confirmed that there has been no change in the supply base of FFB to the said PMU since the previous year assessment. Details of the planted hectarage for the FFB supply to the PMU are as shown in Table 2 below.
Table 2: Estate Area Summary Area Summary (ha) – Previous Area Summary (ha) – Current Estate (Year 2017) (Year 2018) Certified Area Planted Area Certified Area Planted Area 2555.75 2177 2555.75 Gomali Estate 2171 2426.79 1971 2426.79 Paya Lang Estate 1971 2835.50 2639 2835.50 Bahau Estate 2639 Bertam Estate 448.80 413 448.80 411 1660.43 1442 1660.43 Bukit Dinding Estate 1442 679.26 634 679.26 Kuala Jelei Estate 634 Tambang Estate 2019.85 1881 2019.85 1881 2300.27 2139 2300.27 Regent Estate 2137 2547.02 2177 2538.60 Sagil Estate 2169 1569.67 1496 1569.67 Jasin Lalang Estate 1496
Sembilan Tani Estate 256.87 212 256.87 212 (associated outgrower) 17181 Total: 19300.21 19291.79 17163
Notes: 1. This Assessment covered the overall land use for oil palm plantation areas, and the identified Conservation areas including any HCV areas (if any) marked out at the estates. 2. The estates sampled for this Assessment have been selected based on their potential risks on social, environmental and biodiversity issues such as their proximity to forest reserves, hill sides, riparian zones and any high conservation value areas. 3. Changes in the Land titled / Certified areas and Planted areas are verified to be updated in current audit in 2018.
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1.4 Summary of plantings and cycle
The 11 estates been developed since 1990s and most are presently in the 2nd cycle of planting. The age profile is as shown in Table 3. Table 3: Age Profile of Planted Oil Palm (Current Year: 2018) Mature OP (ha) Immature OP Total (ha) – Year of Cycle of Estate Name – Above 3 (ha) – 3 years Planted Planting Planting years & below 0 2171 Gomali Estate 1994-2013 1st & 2nd 2171 0 1971 Paya Lang Estate 1998-2014 1st & 2nd 1971 452 2639 Bahau Estate 1990-2017 1st & 2nd 2187 Bertam Estate 0 411 2001-2002 1st 411 64 1442 Bukit Dinding Estate 1990-2017 1st & 2nd 1378 0 634 Kuala Jelei Estate 1997-2012 1st & 2nd 634 Tambang Estate 342 1881 1994-2017 1st & 2nd 1539 387 2137 Regent Estate 1993-2017 1st & 2nd 1750 127 2169 Sagil Estate 1993-2017 1st & 2nd 2042 144 1496 Jasin Lalang Estate 1991-2015 1st & 2nd 1352
Sembilan Tani Estate 0 212 1994-1998 1st 212 (Associated outgrower) Total 15,647 1,516 17,163
1.5 Summary of Land Use The summary of Land use as identified in the PMU during this assessment is as shown in Table 4 below:
Table 4: Statement of Land Use (including Conservation and HCV Areas)
# Statement of Land Use (Ha) Hectarage – Ha
(Current year: 2018)
1 Planted Area (ha) – Oil Palm Mature (Production) 15,647 Immature (Non-Production) 1516
2 Conservation Area (ha) Comprising unplantable areas such as steep & hilly areas and 2.18 swampy areas.
3 HCV Area (ha) Comprising buffer areas near river riparian, forest reserves, water 82.72 catchments, burial & religious sites.
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1.6 Other certifications held and Use of MSPO Trademarks Currently, the other certification held by IOI Gomali POM and Estates Grouping are the RSPO P&C Certification and also the ISCC certification which are valid.
The MSPO trademarks and logo are not used by the POM / Estates audited. Instructions for use were provided and acknowledged by the POM / Estates through a signed Memorandum of commitment agreeing to adhere to the latest “MSPO Rules on Use of Logos and Trademarks; provided prior to the Audit.
1.7 Organizational information / Contact Person
At Head Office: Dr. Raymond Alfred Sustainability Coordinator / Head IOI Corporation Berhad Level 28, IOI City Tower 2, Lebuh IRC, IOI Resort City, 62502, Putrajaya Tel: 603-89478888 Fax: 603-89478988 Email: [email protected]
At Gomali Grouping – Management Unit: Mr. Ravi Tony Manager Sustainability, Safety and Health (Peninsular) IOI Plantation Services Sdn Bhd Tel: 019-5587152 Fax: 03-8947 8988 Email: [email protected]
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1.8 Tonnages Verified for Certification
1.8.1 The breakdown of all the suppliers and their tonnages of FFB supplied to the POM at Gomali Grouping based on the reporting period for current assessment are as shown in Table 5 below:
Table 5: Tonnages Verified under Certification (2018) Actual (Jan - April 2018) + Projected (May - Dec 2018)
Main Processing Certification By # Estate /Supplier FFB Processed (MT) Palm Oil Mill CB Gomali Mill Intertek 1 Gomali Estate 55250.13 Gomali Mill Intertek 2 Paya Lang Estate 44246.81 Gomali Mill Intertek 3 Bahau Estate 54544.88 Gomali Mill Intertek 4 Bertam Estate 13853.06 Gomali Mill Intertek 5 Bukit Dinding Estate 36911.71 Gomali Mill Intertek 6 Kuala Jelei Estate 17481.23 Gomali Mill Intertek 7 Tambang Estate 48211.00 Gomali Mill Intertek 8 Regent Estate 53344.46 Gomali Mill Intertek 9 Sagil Estate 59187.83 Gomali Mill Intertek 10 Jasin Lalang Estate 36076.01
Sembilan Tani Estate 2543.86 Gomali Mill Intertek 11 (Associated outgrower) a) Sub-total by PMU 421,650.98 estates: External under Parent group
(certified): - - - -
b) Sub-Total other certified - - -
estates: External / Other supplies
(non-certified) - - - - c) Sub-total non- certified
estates:
Grand total: 421,650.98
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1.8.2 Total annual tonnages of FFB supplied to Gomali Grouping POM during the previous period, current assessment and projected period are as shown in Table 6 below:
Table 6: Annual Tonnages of FFB (3 year Monitoring)
FFB Processed in FFB Processed in FFB for processing in Estate / Supplier Year 2017 Year 2018 Year 2019 - Actual - Actual & Projected - Projected MT % MT % MT % Grouping estates: 366,852.45 97.76 421,650.98 100.0% 405,171 100.0% (certified) External Suppliers: 8,421.1 2.24 - - - - (certified) External Suppliers: ------(non-certified) Total 375.273.55 100.0% 421.650.98 100.0% 405,171 100.0% IP IP SCCS Model for POM IP
1.8.3 The annual certified tonnages of CPO and PK production by the PMU as assessed and verified during the current assessment are detailed as shown in Table 7 below:
Table 7: Annual Certified Tonnages – FFB, CPO & PK
Year 2017 Year 2018 Year 2019 POM - Actual - Actual & Projected - Projected 375,273.55 421,650.98 405,171 Total FFB Processed (MT)
78,688.9 OER: 90,655 OER: 89,134 OER: Total CPO Production (MT) 20.97% 21.50% 22.00% 18,688.56 KER: 21,083 KER: 22,284 KER: Total PK Production (MT) 4.98% 5.00% 5.50%
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1.9 Abbreviations Used
CB Certification Body KER Kernel Extraction Rate CHRA Chemical Health & Risk Audit LTA Lost Time Accidents CPO Crude Palm Oil MPOB Malaysian Palm Oil Board CSDS Chemical Safety Data Sheets MPOCC Malaysian Palm Oil Certification Council CSPO Certified Sustainable Palm Oil MSDS Material Safety Data Sheets CSPK Certified Sustainable Palm Kernel MSPO Malaysian Sustainable Palm Oil EFB Empty Fruit Bunch MTCS Malaysia Timber Certification Scheme EHS Environmental Health & Safety MU Management Unit EIA Environmental Impact Audit NCR Non-Conformance Report ETP Effluent Treatment Plant NGO Non-Government Organization FFB Fresh Fruit Bunch OER Oil Extraction Rate GAP Good Agriculture Practice OHS Occupational Health & Safety HCV High Conservation Values PEFC Programme for the Endorsement of Forest Certification Intertek Intertek Certification International Sdn Bhd PK Palm Kernel IOI IOI Corporation Berhad POM Palm Oil Mill IPM Integrated Pest Management POME Palm Oil Mill Effluent ISCC International Sustainability & Carbon Certification PPE Personal Protective Equipment IUCN International Union for Conservation of Nature SCCS Supply Chain Certification Standard JCC Joint Consultative Council SOP Standard Operating Procedure
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2.0 AUDITING PROCESS
2.1 Auditing Methodology, Plan and Site Visits
Since 25 Apr 2018, Intertek has initiated stakeholder communications and notifications via emails to the relevant stakeholders before the audit to provide feedback and comments on their concern (if any) on the Gomali Grouping regarding the environmental, biodiversity, community development and other relevant issues.
From 28 May - 2 Jun 2018, the Assessment team conducted the current assessment in which 4 out of the 11 estates of Gomali Grouping, namely Bahau, Bertam, Jasin Lalang and Tambang estates, as well as the Palm oil mill were assessed for compliance against the MSPO requirements.
The number of estates sampled was based on the sampling methodology with reference to the MSPO Certification Scheme i.e. minimum sample of x estates = (√y) x z, where y is the number of estates and z is the multiplier as defined by the risk assessment. The z multiplier value was determined as Low Risk (z = 1.0) for this POM and Estates grouping considering the geographical location and distance of the estates, complexity of the labour force, landscape setting and presence of HCV or peat, complexity of supply sheds, number of communities and known conflicts, legality etc. Additionally the estates selection was made based on their potential risks on environmental and biodiversity issues such as their proximity to forest reserves, hill sides, riparian zones and HCV areas.
Note: The risk level for the estates sampled has also considered the achievement of other sustainability certifications.
During the on-site audit, relevant documents and records, including Standard Operating Procedures (SOP), management plans, hectarage development, FFB, CPO and PK production, oil palm age profile, operational controls and measures, operational data and records, training records, etc. were reviewed and verified for compliance.
The Audit team covered the palm oil mill and estate operations, agricultural practices, pest management, pesticide and fertilizer application, occupational health and safety, social accountability, environment and other requirements. Stakeholders’ interviews were conducted during the audit and feedback obtained as part of information and evidence gathering. (See section 2.5 Process of stakeholder consultation).
The details of the Audit Plan (actual on-site) are provided in Appendix B.
Intertek has also performed the evaluation of conformity against the MSPO Certification System requirements for CBs. The audit report, findings and associated documents were evaluated through an independent review by the Intertek Internal Technical Review and the External Peer Reviews prior to the approval of this report and decision on certification by Intertek.
2.2 Date of next scheduled visit
The next scheduled visit will be the annual Surveillance Audit which will be carried out within a 12-month period of the certificate anniversary date.
2.3 Qualifications of the Lead Auditor and Audit Team
Competency details of the Lead Auditor and Audit Team are given in Appendix A.
2.4 Certification Body
Intertek Certification International Sdn Bhd is part of the Intertek Group, which is a worldwide technical services organisation dedicated to reducing clients' risks by providing technical inspection services, management system certification in quality, environmental, occupational safety & health and product certification, RSPO P&C, RSPO SCC, ISCC, Marine Sustainability Chain-of-Custody, MTCS and PEFC Chain-of Custody certification in applicable industry sectors including the agricultural and forestry sectors. Intertek operates globally providing clients with a wide-ranging technical inspection expertise and access to thousands of skilled specialists worldwide. Intertek Group’s certification business is ranked in the top 10 worldwide, and is available globally offering certification across a wide range of industries.
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2.5 Process of stakeholder consultation
Stakeholder consultations began with notification of the upcoming audit via e-mails sent to the relevant stakeholders including government agencies, NGOs and local communities. E-mails and telephone enquiries were made prior to the actual audit and stakeholder’s response and feedback received were followed up accordingly.
During the audit, stakeholders (who were available) were interviewed and their feedbacks were recorded and followed up during audit. Among the stakeholders consulted were workers, trade union leaders, women representatives; local community leaders, representatives of government departments / agencies and NGOs, suppliers and contractors.
Among the list of key stakeholders consulted was the following:
Government Agencies (by emails)
1. Department of Lands And Mines (Kuala Lumpur) 2. Department of Environment (Kuala Lumpur) 3. Department of Forestry Peninsular Malaysia (Kuala Lumpur) 4. Department of Immigration (Kuala Lumpur) 5. Department of Irrigation & Drainage (Kuala Lumpur) 6. Department of Labour (Kuala Lumpur) 7. Department of Occupational Safety & Health (Kuala Lumpur) 8. Department of Orang Asli Affairs (Kuala Lumpur) 9. Department of Wildlife & National Parks (Kuala Lumpur) 10. Department of Environment, Johor 11. Department of Forestry, Johor 12. Department of Immigration, Johor 13. Department of Irrigation & Drainage, Johor 14. Department of Labour, Johor 15. Department of Occupational Safety & Health, Johor 16. Department of Wildlife & National Parks, Johor 17. Land and Mines Office, Johor 18. Pertubuhan Keselamatan Sosial (SOCSO), Johor 19. Department of Immigration, Pahang 20. Department of Irrigation & Drainage, Pahang 21. Department of Labour, Pahang 22. Department of Occupational Safety & Health, Pahang 23. Department of Wildlife & National Parks, Pahang 24. Land and Mines Office, Pahang
Statutory Bodies (by emails)
25. Malaysian Palm Oil Board (MPOB) 26. Malaysian Palm Oil Board (MPOB) - Northern Region 27. Malaysian Palm Oil Board (MPOB) - Central Region 28. Malaysian Palm Oil Board (MPOB) - Southern Region 29. Malaysian Palm Oil Board (MPOB) - Eastern Region 30. Malaysian Palm Oil Board (MPOB) - Sarawak Region 31. Malaysian Palm Oil Board (MPOB) - Sabah Region 32. Malaysia Palm Oil Association (MPOA) 33. Malaysia Palm Oil Association Kuala Lumpur (MPOA) 34. Malaysia Palm Oil Association Sabah (MPOA) 35. Malaysian Union for Plantation Workers (NUPW) 36. All Malayan Estates Staff Union (AMESU)
NGOs (by emails)
37. All Women’s Action Society (AWAM) 38. BCSDM - Business Council for Sustainable Development in Malaysia 39. Borneo Child Aid Society (Humana)
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40. Borneo Resources Institute Malaysia (BRIMAS) 41. Borneo Rhino Alliance (BORA) 42. Center for Orang Asli Concerns COAC 43. Centre for Environment, Technology and Development, Malaysia - CETDEM 44. Eco Knights 45. ENO Asia Environment 46. Environmental Management and Research Association of Malaysia (ENSEARCH) 47. Environmental Protection Society Malaysia (EPSM) 48. Friends of the Earth, Malaysia 49. Future in Our Hands Society, Malaysia 50. Global Environment Centre 51. HUTAN - Kinabatangan Orang-utan Conservation Programme 52. Institute of Foresters, Malaysia (IRIM) 53. JUST - International Movement for a Just World 54. Malaysian CropLife & Public Health Association (MCPA) 55. Malaysian Environmental NGOs - MENGO 56. Malaysian National Animal Welfare Foundation – MNAWF 57. Malaysian Nature Society Johor 58. Malaysian Nature Society Pahang 59. Malaysian Plant Protection Society (MAPPS) 60. National Council of Welfare & Social Development Malaysia - NCWSDM 61. National Union of Plantation Workers (NUPW) 62. Partners of Community Organisations (PACOS) 63. Pesticide Action Network Asia and the Pacific (PAN AP) 64. Proforest - South East Asia Regional Office 65. R.E.A.C.H. - Regional Environmental Awareness Cameron Highlands 66. SUARAM - Suara Rakyat Malaysia 67. SUHAKAM - National Human Rights Society - Persatuan Kebangsaan Hak Asasi Manusia 68. Sustainable Development Network Malaysia (SUSDEN) 69. Tenaganita Sdn Bhd 70. The Malaysian Forum of Environmental Journalist (MFEJ) 71. TRAFFIC Southeast Asia - Wildlife trade & trafficking monitoring programme 72. Transparency International - Malaysian Chapter 73. Treat Every Environment Special Sdn Bhd. (TrEES) 74. United Nations Development Programme - UNDP Malaysia 75. Wetlands International (Malaysia) 76. Wild Asia Sdn Bhd 77. World Wide Fund for Nature (WWF) Malaysia
Local community (On-site interviews)
78. Consultative Committee & Gender representatives 79. Workers & Workers representatives 80. Village Heads & representatives 81. Suppliers & Contractors representatives
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3.0 AUDIT FINDINGS
3.1 Summary of findings
Certification Unit: Dynamic Plantations Sdn Bhd – (Gomali POM) Auditor/s: Augustine Loh (AL), Sazali Bin Hasni (SH) and Mohd Nazib Marwan (MNM) Audit Dates: 29 May – 2 Jun 2018
P1: Management Commitment & Responsibility
Clause Requirements Evidence Conformity 4.1.1 C1: MSPO Policy 4.1.1.1 Indicator 1: Policy for the IOI Corporation Berhad has documented the Group Complied implementation of MSPO shall Sustainable Palm Oil Policy (SPOP) dated 12 Jun 2017 be established. alongside a detailed Sustainability Implementation Plan (SIP). The company has documented its MSPO Policy to comply with all applicable legislation and codes of practice within the SIP.
4.1.1.2 Indicator 2: The policy shall The policy had also clearly stated the company’s Complied also emphasize on the commitment which included continual improvement in the commitment to continual overall aspects of plantation management and community improvement with the objective development. of improving the milling operation. 4.1.2 C2: Internal audit 4.1.2.1 Indicator 1: Internal audit shall There is a documented procedure for conducting Internal Complied be planned and conducted audit. Audit was planned on to be held on annual basis regularly to determine the which is conducted by the SPO Team. strong and weak points and potential area for further improvement. 4.1.2.2 Indicator 2: The internal audit A procedure for internal audit was established and Complied procedures and audit results documented, i.e. SOP 8 Issue 1 Rev 0 (17/02/2018). shall be documented and Internal audit on POM was conducted on 5 Mar 2018. evaluated, followed by the There were 12 non-conformances raised for the internal identification of strengths and audits on the POM. root causes of nonconformities, Audit results evaluated and corrective actions taken on the in order to implement the non-conformances. necessary corrective action. 4.1.2.3 Indicator 3: Reports shall be The audit report was documented and made available for Complied made available to the the Management reviews. management for their review. 4.1.3 C3: Management review 4.1.3.1 Indicator 1: The management Management review for POM was conducted on 12 Apr Complied shall periodically review the 2018 and minutes of meeting maintained. The status of the continuous suitability, adequacy implementation of MSPO was noted to be discussed. and effectiveness of the Appropriate improvement actions were recommended for requirements for effective the management system of the POM. implementation of MSPO and decide on any changes, improvement and modification. 4.1.4 C4: Continual improvement 4.1.4.1 Indicator 1: The action plan for Action plans for continual improvement have been Complied continual improvement shall be specified and documented for the POM. based on a consideration of the main social and environmental impact and opportunities for the company.
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4.1.4.2 Indicator 2: The company Meetings and consultations were conducted for the Complied should establish a system to introduction and implementation of any new information or improve practices in line with technology that is feasible and applicable to the company. new information and Plans for a Methane capture system is still being planned techniques; and for and is awaiting budget approval from the Corporate HQ. disseminating this information throughout the workforce.
P2: Transparency
Clause Requirements Evidence Conformity 4.2.1 C1: Transparency of information and documents relevant to MSPO requirements 4.2.1.1 Indicator 1: The management The management has adopted an open and transparent Complied shall communicate adequate method of communication and consultation when dealing information to other with relevant parties e.g. its workers, government agencies, stakeholders on environmental, contractors, neighbouring plantations by personal invitation social and legal issues relevant to attend the internal and external stakeholders’ to sustainable practices in the consultation meetings. relevant languages and forms. Languages used in written communications are in Bahasa Malaysia and English, coupled with verbal native dialects.
4.2.1.2 Indicator 2: Management Management documents such as Policies, Stakeholder Complied documents shall be publicly consultation processes, Financial Annual Reports are available, except where this is available upon request and at the IOI website: prevented by commercial http://www.ioigroup.com/Content/S/S_Policy confidentiality or where Any commercially confidential information will need special disclosure of information would request before being provided. result in negative environmental or social outcomes. 4.2.2 C2: Transparent method of communication and consultation 4.2.2.1 Indicator 1: Procedures shall be The management had established procedures and Complied established for consultation and mechanisms to conduct stakeholders consultations, handle communication with the complaints and grievances through stakeholders meetings, relevant stakeholders. Gender Consultative Committees (GCC), Employee Consultative Committees (ECC), Safety & Health Committees (SHC). 4.2.2.2 Indicator 2: The management The Mill Manager is overall responsible for any issues Complied shall nominate management raised by local communities and other affected or officials at the operating unit interested parties regarding mill operations. responsible for issues related to Social Liaison Officers are also nominated to coordinate Indicator 1 (4.2.2.1). activities of the stakeholders, GCCs, ECCs and SHCs. Appointments letters as issued to the respective Social Liaison Officers. 4.2.2.3 Indicator 3: A list of Latest stakeholders list sighted at Gomali POM was Complied stakeholders, records of all updated till May 2018 which included all contractors such consultation and as CPO transportation and Schedule waste contractors. communication and records of Records of consultation and communication included action taken in response to attendance lists, minutes of the meetings, photographs of input from stakeholders shall be the meetings and meeting notes. properly maintained. Minutes of meetings had noted deliberation of the issues raised and recommendations of actions to be taken and the follow-up. 4.2.3 C3: Traceability 4.2.3.1 Indicator 1: The management The IOI Group has established, implemented and Complied shall commit itself to implement maintained a procedure for traceability of FFB from the and maintain the requirements estates to the CPO and PK produced by the POM. for traceability and shall Documented SOP on Traceability: SOP/COC/3 Issue No. establish a standard operation 05 dated 01/01/2018. procedure for traceability. 4.2.3.2 Indicator 2: The management Compliance with the traceability system determined via Complied shall conduct regular regular inspections, checking of records and internal inspections on compliance with audits. the established traceability system.
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4.2.3.3 Indicator 3: The management The Palm Oil Mill and Estates Organization Charts and job Complied shall identify and assign responsibilities of employees (Mill Manager, Estate suitable employees to Managers, Assistant Manager, Engineers, Assistant implement and maintain the Engineers, Technicians, Security Officer, Weighbridge traceability system. Operator, Laboratory Chemist and clerks) have been suitably defined for the implementation and maintenance of the traceability procedure. Interviews of the relevant staff confirmed their knowledge of the traceability requirements for their respective areas of operations. 4.2.3.4 Indicator 4: Records of storage, All records of incoming FFB transported / received, CPO Complied sales, delivery or transportation and PK produced and delivered out, on a daily basis, were of crude palm oil and palm maintained and verified to be traceable via the Delivery kernel shall be maintained. Note, Lorry Ticket and Weighbridge Ticket which were maintained at the POM office. The POM monitors the stock volumes of CPO in the storage tanks and PK in the silo on a daily basis.
P3: Compliance to legal requirements
Clause Requirements Evidence Conformity
4.3.1 C1: Regulatory requirements
4.3.1.1 Indicator 1: All operations shall The Legal Requirements Register covering the applicable Complied be in compliance with local and international laws and regulations is available at applicable local, national and the POM. ratified international laws and The relevant legislations identified and listed were among regulations. others regarding safety and health, environmental management, pollution management, chemical handling, usage & storage, schedule waste management, labour laws, Unions, EPF, SOCSO, Housing and Amenities. Levy and other deductions have been taken with the consent of the workers in accordance with the regulations. FOMEMA (The Foreign Workers Medical Screening Expert) fees, for the health screening of foreign workers which was borne by the company and carried out as per the Ministry of Health guidelines. Licenses and permits (License for Trading, License for Employment of Foreign Workers, Workers Wages Deduction Permit, Domestic and Consumer Permit for Keeping Diesel, Petrol & Fertilizer, MPOB license, DOSH (Department of Occupational Safety and Health) Certificates, DOE (Department of Environment Permit, etc.) were renewed and evidenced to be valid. Environmental Quality Act 1974 and Environmental Quality (Scheduled Wastes) Regulations 2005: Scheduled wastes such as hydraulic and used motor oils, rags, empty chemical and lubricants containers collected at six monthly intervals by DOE licensed contractor. Weight and Measures Act 1972, regulations 16, 28A, 45): Weighbridges were duly calibrated. Factory and Machinery Act 1967, Regulations 1970: Steam engineers (Grade 1 and 2), boilermen and electricians were noted to be with valid certificates from relevant authorities (DOSH and Energy Commission). The POM has maintained a boiler register that indicate the date of commission, cleaned, inspected, tested or repaired. Valid certificates of fitness for boilers, sterilizers, air receivers, thermal deaerator, steam separator, vacuum oil dryer, etc. issued by DOSH.
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Valid license for diesel generators issued by Energy Commission (“Suruhanjaya Tenaga”). Valid licenses for authorized gas tester (ACT), authorized entrant and standby by person for confined space activities in POM. Occupational Health and Safety Act 1994 – safety and health meetings to be conducted at quarterly intervals. Noise Monitoring Report is available. Annual Audiometric testing of workers exposed to high noise levels were done. The audiometric reports of some employees indicated as having hearing impairment and were recommended to wear hearing protector. Verified that ear plugs and mufflers were issued and worn by the workers during site inspection. Baseline audiogram and occupational and medical history records of the workers were available and noted to be maintained. Legal documents of foreign workers (including work permits and passports) are renewed and valid. Insurance coverage is maintained and available for foreign workers (if any) in the POM. Land Assessment and statutory returns to relevant authorities found to be in compliance. Based on the site observations, interviews and records checked, there was evidence of compliance with the relevant laws, regulations, local and international laws at the POM. There were no cases of any violation or actions imposed by relevant authorities. 4.3.1.2 Indicator 2: The management The organization has listed all local and international laws Complied shall list all relevant laws applicable to their operations in a Legal Requirements related to their operations in a Register (LRR). legal requirements register.
4.3.1.3 Indicator 3: The legal The documented system for identifying, determining, Complied requirements register shall be reviewing and updating applicable legal and other updated as and when there are requirements has been satisfactorily implemented. any new amendments or any The Legal Requirements Register was verified to be new regulations coming into reviewed for the POM on 3 May 2018 for any relevant force. updates. All relevant updates noted to be communicated by the IOI HQ to all POMs within the IOI group. Listing of laws and regulations monitored with updated changes included the Employment Act 1955, regulations and circulars received from bodies such as DOE (Department of Environment) and DOSH (Department of Occupational Safety and Health), DID (Dept. of Irrigation and Drainage), Forestry Dept. and Wildlife Dept. which were noted to be satisfactorily adhered. 4.3.1.4 Indicator 4: The management Tracking of regulatory requirements and communication of Complied should assign a person changes is performed by the Senior General Manager at responsible to monitor the IOI Group HQ, Putrajaya, Federal Territory. compliance and to track and The mechanism of tracking the law changes as identified update the changes in from IOI Group HQ, would be distributed to all POMs and regulatory requirements. Estates via email. Monitoring of compliance is done by the Sustainability, Safety and Health (Peninsular) Manager and Sustainability Team, who are based on site. 4.3.2 C2: Land use rights 4.3.2.1 Indicator 1: The management Communities surrounding the POM are able to move freely Complied shall ensure that their oil palm without any issues or problems. milling activities do not diminish Verified during site inspection that no such limitations had the land use rights of other occurred. users.
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4.3.2.2 Indicator 2: The management The POM is located within Gomali Estate. Copies of the Complied shall provide documents land titles of all estates were maintained and noted to be showing legal ownership or legally owned by the IOI Group. The original copies are lease, history of land tenure maintained by the Corporate Head office in Putrajaya. and the actual legal use of the The POM has legal use of the land for oil palm milling land. activities. There were no recorded or known disputes over the ownership of the land. No changes to the land ownership or new land acquisition since the last audit. 4.3.2.3 Indicator 3: Legal perimeter Locations of several boundary stones and markers were Complied boundary markers should be visited and verified to be within the boundary perimeter of clearly demarcated and visibly the POM. maintained on the ground, where practicable. 4.3.2.4 Indicator 4: Where there are, or Verified that there were no borders at POM which were Complied have been disputes, adjacent to any villages or native land. documented proof of legal As such, the process of fair compensation and FPIC is acquisition of land title and fair currently not required to be applied. compensation that have been or are being made to previous owners and occupants; shall be made available and that these should have been accepted with free prior informed consent (FPIC). 4.3.3 C3: Customary rights 4.3.3.1 Indicator 1: Where lands are Not applicable as this is titled land which is not Not encumbered by customary encumbered by customary rights. applicable rights, the company shall demonstrate that these rights are understood and are not being threatened or reduced. 4.3.3.2 Indicator 2: Maps of an Appropriate landscape maps with latitude & longitudes Complied appropriate scale showing showing the legal boundary and neighbouring / surrounding extent of recognized customary areas of the POM were available and maintained. rights shall be made available. The lands at Gomali Grouping are legally owned or leased by IOI Group and it is verified that there were no other users or affected parties in the land areas. 4.3.3.3 Indicator 3: Negotiation and Not applicable as the titled lands are not encumbered by Not FPIC shall be recorded and customary rights. applicable copies of the relevant agreements should be made available.
P4: Social responsibility, health, safety and employment condition Clause Requirements Evidence Conformity 4.4.1 C1: Social impact Audit (SIA) 4.4.1.1 Indicator 1: Social impacts Social Impact Assessment report and Management Plans Complied should be identified and plans at the POM were documented by the Sustainability Team. should be implemented to The plans included monitoring of negative impacts and mitigate the negative impacts enhancement of positive ones. and promote the positive ones. Social impact assessment [SIA] review for the year 2018 for IOI Gomali Grouping was conducted together with relevant external and internal stakeholders in separate sessions. For example, external consultation session for Gomali POM was conducted on 25 May 2018. The external consultations were attended by external stakeholders including suppliers, contractors, neighbouring estates, transporters, government agencies, etc. Monitoring records were retained and made available as evidence that actions had been taken.
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4.4.2 C2: Complaints and grievances 4.4.2.1 Indicator 1: A system for The management had established the Prosedur Aduan and Complied dealing with complaints and Carta Alir Laporan Aduan on 21 Aug 2017. In addition, grievances shall be established since Feb 2014, IOI had developed “Dasar Pemberi and documented. Maklumat (Whistleblowing)” [www.ioigroup. com/Content/CI/PDF/Corp_WhistleblowingPolicy.pdf] which was approved by “Jawatankuasa Audit dan Pengurusan Risiko”. A Complaints / Grievance Register is maintained. Verified that issues registered are mainly on housing repairs, road conditions, water and electricity disruptions etc. The complaints are reviewed with appropriate actions taken and recorded.
4.4.2.2 Indicator 2: The system shall be The procedure and flowchart outlined the mechanism Complied able to resolves disputes in an whereby all complaints or grievances will be received and effective, timely and appropriate be acted upon by the Social Liaison Officers who will manner, which is accepted by investigate the matter and resolve with the affected parties. all parties. Complaints and grievances are investigated, addressed and resolved based on their severity. Minor complaints will normally be resolved within 2-3 working days, whilst major complaints and grievances will be resolved based on priority and budget availability. No complaints related to sexual harassment received so far, but the procedures stated such issues will be handled with the utmost privacy and confidentiality by the GCC. Verified that there no instances of any serious disputes.
4.4.2.3 Indicator 3: A complaint form All complaints and grievances received are documented Complied should be made available at the either in the form of log book as in the Grievance Book, premises, where employees meeting minutes for the ECC, GCC, Safety meetings and and affected stakeholders can annual stakeholder consultations or respond forms. make complaints. Decisions and action as responds to the complaints and grievances received also very well documented with sufficient supporting documents as proofs. Other than reports made to the gender representatives, all other complaints and grievances are accessible to public. However, it was noted that numbers of grievances recorded from workers in the grievance books are declining. This decline is mainly due to many different avenues for the workers to raise their concerns to the management, especially through frequent meetings between workers and the management.
4.4.2.4 Indicator 4: Employees and The Management informed the invited employees and Complied surrounding communities surrounding communities at the internal and external should be made aware of its stakeholders’ consultations regarding their existence and that complaints complaint/grievance procedure and feedback mechanism. or suggestions may be made at External consultation session for Gomali POM was any time. conducted May 2018. Participation of external stakeholders were verified from contractors, suppliers, government agencies, police, neighbouring estate, etc.
4.4.2.5 Indicator 5: Complaints and The Complaint and Grievance Books that recorded the Complied solutions within the past 24 nature of complaints and the resolutions had been months shall be documented maintained and available for the past 3 years. and be made available to affected stakeholders upon request. 4.4.3 C3: Commitment to contribute to local sustainable development
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4.4.3.1 Indicator 1: Palm oil millers Main contribution of the POM to the local development was Complied should contribute to local demonstrated in the provision of facilities and monetary development in consultation contributions, where feasible. The mill is also supplying with the local communities. free treated water and electricity to the nearby workers Where the mill is an integral housing area belong to both the POM and Gomali Estates. part of a plantation, such The POM is also at the same time providing a considerably contribution to local community big number of job opportunities to the communities development may be regarded surrounding the POM. as a joint effort by the mill and the plantation.
4.4.4 C4: Employees safety and health 4.4.4.1 Indicator 1: An occupational Occupational Safety and Health Policies and Plans were Complied safety and health policy and established and verified to be in accordance with the OSH plan which is in line with Act,1994 and FMA 1967 (Act 139). Occupational Safety and Health The Plans have been reviewed (annually), up-dated and Act 1994 and Factories and approved by the Mill Manager. Machinery Act 1967 (Act139) shall be documented, effectively communicated and implemented.
4.4.4.2 Indicator 2: The occupational Safety Policy and HIRARC documented for the POM. Complied safety and health plan shall cover the following: The HIRARC was reviewed on 5 Jan 2018. a) A safety and health policy, The OSH Programme 2018 include the following: which is communicated and Safety & Health Committee meetings were held quarterly. implemented. b) The risks of all operations Annual medical surveillance, shall be assessed and Accident Reporting & Investigation, documented. Workplace inspection, c) An awareness and training CHRA assessment, programme which includes the Air compressors annual inspection, following requirements for Warning signs, employees exposed to Chemical Register, chemicals used at the palm oil SOP for safe work, mill: PPE usage, i) all employees involved are MSDS/CSDS, adequately trained on safe JKKP 8 reporting of accidents annually, working practices; and Emergency Response Plan (ERP), ii) all precautions attached to Emergency drills, products should be properly Inspections (line site, fire extinguisher, first aid box, observed and applied. chemical store, ELCB, PPE checklist, Vehicle daily d) The management shall inspection, gen set maintenance, ramp inspection, bridge provide the appropriate and tanks inspection), personal protective equipment Monthly KPI Report on HSE performance, (PPE) at the place of work to Monthly Safety inspection & audit by Safety Officer, cover all potentially hazardous CHRA report issued in Apr 2014 is still valid and operations as identified in the recommendations were verified to have been adhered on- risk Audit and control such as site. Next CHRA assessment scheduled for year 2019. Hazard Identification, Risk Audit Surveillance programmes for protecting workers’ health and Risk Control (HIRARC). and safety were satisfactorily implemented. e) The management shall Accident and emergency procedures had been established establish Standard Operating and briefed to staff, workers, contractors and visitors. Procedure for handling of Workers trained in First Aid were present in the mill and chemicals to ensure proper and field operations. safe handling and storage in First Aid Kits were available at worksites. accordance to Occupational Records on all accidents had been verified to be Safety Health (Classification maintained satisfactorily. Packaging and Labeling) Quarterly review on accident cases had been carried out Regulation 1997 and during quarterly meeting of Environment, Safety, & Health Occupational Safety Health (ESH) committee. (Use and Standard of Exposure of Chemical Hazardous to Medical care had been provided to all the workers at the Health) Regulation 2000. Clinics noted to be nearby the POM office. P a g e 19 | 37
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f) The management shall Local workers are covered by SOCSO, whereas foreign appoint responsible person(s) workers are covered by Foreign Workers Compensation for workers' safety and health. Scheme with MSIG insurance noted to be valid. The appointed person(s) of Records on Lost Time Accident (LTA) metrics and trust shall have knowledge and occupational injuries were available and verified to be access to latest national satisfactorily maintained. regulations and collective agreements. g) The management shall conduct regular two-way communication with their employees where issues that affect their business such as those related to employees’ safety, health and welfare are discussed openly. Records from such meetings shall be kept and the concerns of the employees and any remedial actions taken shall be recorded. h) Accident and emergency procedures shall exist and instructions shall be clearly understood by all employees. i) Employees trained in First Aid shall be present at all mill operations. First Aid equipment should be available at each worksite. j) Records shall be kept of all accidents and be reviewed periodically at quarterly intervals. 4.4.5 C5: Employment conditions 4.4.5.1 Indicator 1: The management The management had established the “Group Sustainable Complied shall establish a policy on good Palm Oil Policy” - social practice regarding human http://www.ioigroup.com/Content/S/PDF/Sustainable%20P rights in respect of industrial alm%20Oil%20Policy.pdf harmony. The policy shall be in Mar 2018, signed by Group CEO, which covered the signed by the top management necessary aspects of human rights related issues. and communicated to the The employees are informed through briefing during employees. muster, at the GCC and ECC meetings. The policy is also displayed at notice boards in the office. 4.4.5.2 Indicator 2: The management The management had established the Equal Job Complied shall not engage in or support Opportunity Policy where the commitments included discriminatory practices and providing equal opportunities and treatment regardless of shall provide equal opportunity race, colour, sex, religion, political opinion, nationality, and treatment regardless of social origin or any other distinguishing characteristics. race, colour, sex, religion, political opinion, nationality, The Policy is available in local languages and English and social origin or any other displayed at the Mill’s notice boards. distinguishing characteristics. Employment records were checked and confirmed that this policy had been implemented and maintained. 4.4.5.3 Indicator 3: Management shall Documentation and conditions of pay for workers (including Complied ensure that employees’ pay and foreign workers) in the POM are available. Employment conditions meet legal or agreement with foreign workers, stated all statutory fringe industry minimum standards as benefits and eligible incentives, e.g. working hours, per Collective Agreements. The overtime, leave and medical benefits, maternity leave for living wage should be sufficient women, insurance coverage, deductions, resignation notice to meet basic needs and period, and company rules. Company procedures require provide some discretionary the employment contract to be explained by management income based on minimum to potential foreign workers before contracts are signed. wage.
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Pay slips are available for verification showed the workers were able to earn living wage that meet the Minimum Wage Order 2016. 4.4.5.4 Indicator 4: Management The management ensured that employees of contractors Complied should ensure employees of are paid based on Minimum Wage Order 2016 by contractors are paid based on monitoring salary payment and interviewing the legal or industry minimum contractor’s employees. At the POM, a small number of standards according to the workers found to have received less than stipulated employment contract agreed minimum wages and reasons provided by the management between the contractor and his were absenteeism, long holidays, five Sundays in a month, employee. etc. These reasons were verified as sufficiently accurate during the audit. However, evidence is clear that the workers, who reached the daily target and working the whole month without being absent, received at least the minimum wages. Noted that many workers received much higher than the minimum wages. 4.4.5.5 Indicator 5: The management The management maintained lists of employees that Complied shall establish records that recorded the full names, gender, date of birth, date of provide an accurate overview of entry, wage and period of employment. all employees (including A brief description of the work that the foreign workers will seasonal workers and be performing is written into the employment contract. subcontracted workers on the Full job descriptions are documented for senior positions, premises). The records should such as Managers, Social Liaison Officer, and Safety & contain full names, gender, Health Officer etc. date of birth, date of entry, a job description, wage and the period of employment. 4.4.5.6 Indicator 6: All employees shall All employees are provided with employment contracts in Complied be provided with fair contracts accordance with the regulations. The terms of employment that have been signed by both are clearly specified in the contracts, which included employee and employer. A position offered, period of employment, salary, overtime copy of employment contract rate, rest days every Sundays, rate of pay when working on shall be made available for rest days, days and hours of work, approved deductions, each and every employee termination of employment, holiday pay, rate of pay when indicated in the employment working on holidays, leave pay, sick leave, maternity leave, records. passage expenses, expatriations of remains and burial arrangement, insurance. The employment contract is signed by the Mill Manager or his Assistant and the employee. Interview with the employees confirmed that they received a copy of the employment contract.
4.4.5.7 Indicator 7: The management The management had installed a biometric time recording Complied shall establish a time recording machine that records the working hours and is linked to the system that makes working database containing the details of each employee. hours and overtime transparent for both the employees and Data recorded by the time recording machine are used for employers. calculating the working hours and overtime. 4.4.5.8 Indicator 8: The working hours The working hours of the employees and overtime rates Complied and breaks of the individual are specified in the employment contract i.e. 8 hours per worker indicated in the time day. The working hours, breaks and overtime rates are in records shall comply with legal accordance with the regulations. regulations and collective agreements. Overtime shall be mutually agreed upon and shall meet the legal requirement applicable. 4.4.5.9 Indicator 9: Wages and Pay slips clearly showed the basic pay or piece rate, Complied overtime payment documented number of days worked or total output, any allowable on the pay slips shall be in line deductions and net amount.
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with legal regulations and Any overtime, holiday pay, working on rest days or collective agreements. Sundays or Holidays, when applicable, are also shown on the pay slips. 4.4.5.10 Indicator 10: Other forms of The employees are offered incentives on output, provided Complied social benefits should be training, access to medical care and other benefits such as offered by the employer to free housing, free water supply and free electricity supply. employees, their families or Also offered free education facilities, free childcare, and community such as incentives medical services to foreign workers and dependents of for good work performance, local workers. bonus payment, support of professional development, medical care provisions and improvement of social surroundings 4.4.5.11 Indicator 11: In cases where The POM complied with The Workers’ Minimum Standard Complied on-site living quarters are of Housing and Amenities Act 1990 (Act 446) by providing provided, these quarters shall adequate housing, water supplies, medical, educational be habitable and have basic and public amenities to their local and foreign workers. amenities and facilities. Workers are provided with free living quarters constructed of permanent materials that have living rooms, bedrooms, kitchen and toilets. All the houses are supplied with treated water and electricity. The treated water for domestic use meets all the required parameters, including that of bacterium count (WHO Specification for Drinking Water Quality) (see also 4.5.5.1). The workers are provided with medical, educational and public amenities.
4.4.5.12 Indicator 12: The management The management had established the Policy On Complied shall establish a policy to Prevention And Eradication Of Sexual Harassment In The prevent all forms of sexual Workplace. The policy is displayed at the notice board of harassment and violence at the the office and the workers are briefed about the policy workplace. during muster and the annual IOI policies briefing to all workers. 4.4.5.13 Indicator 13: The management The published statements of policy which recognises Complied shall respect the right of all employee’s freedom of association, was noted to be employees to form and join available and widely displayed in Bahasa Malaysia. trade union and allow workers’ own representative(s) to The POM had formed JCC and ECC as mechanisms to facilitate collective bargain in cater for the collective bargaining needs of the workers. accordance with applicable Results of JCC meetings were minuted and available for laws and regulations. verification. JCC as an alternative to workers union is Employees shall be given scheduled to conduct their meeting quarterly. It was freedom to join trade unions verified that each meeting is properly documented and filed relevant to the industry or complete with photographic evidence. Participants in JCC organize themselves for meetings normally involved workers representatives from collective bargaining. different categories of workers such as general workers, Employees shall have the right drivers, laboratory, workshops, etc. JCC is one level to organize and negotiate their higher than ECC meetings, where in ECC meetings all work conditions. Employees foreign workers are invited to attend and give their inputs exercising this right should not on relevant concerns. be discriminated against or The meeting minutes are accessible to all members in the suffer repercussions. JCC and other workers as well. In each meeting, the meeting started with approval of previous meeting minutes and evaluate the status of issues raised. 4.4.5.14 Indicator 14: Children and There was no evidence of any child labour being used at Complied young persons shall not be the POM. employed or exploited. The minimum age shall comply with The Child Labour Policy adopted by the POM local, state and national managements had stated that the minimum age of workers legislation. is 19 years. Site inspection of the employment records in all estates confirmed that this has been complied.
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Inspection of the employment records including site visit to the POM confirmed that this requirement has been complied with. There was no evidence of any child labour being used at the POM. 4.4.6 C6: Training and competency 4.4.6.1 Indicator 1: All employees and Training programme planned for year 2018 includes Complied contractors shall be training for all categories of workers. appropriately trained. A training Appropriate trainings on safe working practices are programme shall include planned for: regular Audit of training needs - workers exposed to machinery and high noise levels, and documentation, including - workers working in confined space, records of training. The training programme included the various types of training such as firefighting and fire drill, exposure to high noise levels and control measures for protection of hearing and audiometric tests, understanding MSDS/CSDS and first aid training. The trainings were conducted for year 2017 till Apr 2018 and evaluation carried out on each of the trainings to determine its effectiveness. Appropriate PPE (such as safety helmets, shoes, ear plugs, goggles etc.) had been provided to Mill workers, FFB unloaders at the place of work to cover all potentially hazardous operations. Records of training for each employee, including new employees were maintained. 4.4.6.2 Indicator 2: Training needs of A formal training programme on all aspects of MSPO Complied individual employees shall be requirements have been established and implemented. identified prior to the planning Training for various categories of operators, including all and implementation of the field and office staff, with regards to their duties and training programmes in order to training needs had been reviewed and found acceptable. provide the specific skill and The training needs analysis discuss in Safety and Health competency required to all meetings under the agenda of Safety & Health Training. employees based on their job description. 4.4.6.3 Indicator 3: A continuous Training programme planned for year 2018 includes Complied training programme shall be training for all categories of workers. planned and implemented to Trainings were conducted based on categories of work ensure that all employees are stations. Sampled trainings and records include Grading well trained in their job function Station, Loading Ramp Station, Threshing Station, Boiler and responsibility in Station etc. accordance to the documented training procedure.
P5: Environment, natural resources, biodiversity and ecosystem services
Clause Requirements Evidence Conformity 4.5.1 C1: Environmental management plan 4.5.1.1 Indicator 1: An environmental A policy on environment was developed in accordance with Complied policy and management plan the relevant country and state laws. It is documented and which shall be in line with the communicated to all levels of the workforce through relevant country and state briefings and placement of the policy on notice boards. environmental laws shall be Briefing on the said policy and management plans was established, effectively conducted on 5 and 12 May 2018 to all staff and workers. communicated and implemented. 4.5.1.2 Indicator 2: The environmental The Environmental Management Plan was initially Complied management plan shall cover prepared in Feb 2015 and latest review on 5 May 2018. the following: It included the environmental policy and also the a) An environmental policy and objectives. objectives; The Environmental Aspects and Impacts Assessment (EIA) b) The aspects and impacts was conducted and documented. It was reviewed in May analysis of all operations. 2018. The scope of assessment had included the management of mill effluents, management of pests and disease palms(IPM), maintenance of roads, drainage
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system fertilizing, spraying, transportation of FFB, schedule waste and garbage disposal, accordingly to the local requirements. The EIA report had also included the action plans and recommendations to mitigate the negative effects and to promote the positive ones. The assessment had also included the relevant stakeholders to identify impacts and develop the mitigation measures such as relevant conservation activities. 4.5.1.3 Indicator 3: An environmental The EIA document had also included the development of Complied improvement plan to mitigate the Environmental Improvement Plan for the mitigation of the negative impacts and to negative impacts and promotion of positive impacts. promote the positive ones, shall The POME and EFB are delivered/recycled to the be developed, implemented plantation for fertiliser and moisture retention purposes. and monitored. The implementation and monitoring of the documented environmental improvement plan were reviewed annually and found to be satisfactorily implemented. 4.5.1.4 Indicator 4: A programme to A Continual Improvement Plan has been developed and Complied promote the positive impacts implemented for the promotion of positive impacts such as should be included in the using Geotubes to help filter effluents solids and the continual improvement plan. maintenance of the fencing for the water ponds supplying water to the mill. 4.5.1.5 Indicator 5: An awareness and Verified that the documented training programme had been Complied training programme shall be established. Briefing on the awareness and understanding established and implemented to of the objectives on Environmental management were ensure that all employees adequately conducted and conveyed to all levels of staff. understand the policy, objectives and management plans and are working towards achieving the objectives. 4.5.1.6 Indicator 6: Management shall Regular meetings and discussions or consultation with Complied organize regular meetings with relevant employees were conducted in relation to workers where concerns of environmental quality issues. Environmental Performance workers about the Monitoring Committee was also set up oversee the environmental quality are implementation of the programmes laid out. This committee discussed. met at a minimum of once every 3 months. The latest meeting was conducted on the 23 May 2018. Minutes of meetings was made available during the audit. In addition, on the job briefings were also conducted by the personnel to the relevant workers only.
4.5.2 C2: Efficiency of energy use and use of renewable energy 4.5.2.1 Indicator 1: Consumption of Usage of non-renewable energy is monitored monthly. Complied non-renewable energy shall be Record on the usage of diesel and electricity is available optimized and closely for review. monitored by establishing Monthly records on energy consumption for non-renewable baseline values and trends fuel (diesel) were maintained at the POM. shall be observed within an Data compiled (5 years) for comparison and monitored to appropriate timeframe. There optimize the use of non-renewable energy. should be a plan to assess the Records available were verified and showed satisfactory usage of non-renewable energy monitoring of the resources. including fossil fuel, electricity and energy efficiency in the operations over the base period. 4.5.2.2 Indicator 2: Palm oil millers Record on the usage of non-renewable energy for Complied shall estimate the direct usage machineries involved in the POM operation is available. of non-renewable energy for Monthly records on energy consumption for both their operations, including fossil renewable fuel (Palm fiber and PK shell) and non- fuel, and electricity to determine renewable fuel (diesel) were maintained at the POM. Data energy efficiency of their compiled (5 years) for comparison and monitored to operations. optimize the use of renewable energy. Data recorded had showed satisfactory monitoring of the energy consumption.
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4.5.2.3 Indicator 3: The use of The POM has been using part of the EFB, FFB mesocarp Complied renewable energy should be fibers and shells in the boiler operations for power applied where possible. generation and supply. This has helped to reduce the consumption of diesel. Quantity of fibre and shell usage in 2017 & 2018 was in the region of 100% fibre and 80% shell used as fuel.
4.5.3 C3: Waste management and disposal 4.5.3.1 Indicator 1: All waste products The documentation and identification of all the waste Complied and sources of pollution shall products such as scheduled waste, domestic waste, clinical be identified and documented. waste and recyclable waste such as metal, plastic, POM waste and polluting materials e g. EFB, POME, Stack emissions and boiler ashes were maintained and monitored at the POM. Scheduled Waste identified included spent hydraulic oil (SW 305), spent lubricant oil (SW 306), used chemical containers/drums (SW 409), used filters (SW 410), clinical waste (SW 404) and used batteries (SW 102).
4.5.3.2 Indicator 2: A waste The waste management and disposal plan were in place at Complied management plan shall be the POM. It has been documented and implemented as developed and implemented, to required and is being carried out responsibly and avoid or reduce pollution. The satisfactorily. waste management plan should Segregation of wastes, i.e. general wastes and scheduled include measures for: wastes was verified to be satisfactory practiced in the a) Identifying and monitoring POM. Proper storage areas were identified for the storage sources of waste and pollution. of the recyclable wastes at the POM. b) Improving the efficiency and Records on the usage and disposal were well recorded and recycling potential of mill by- documented at the POM. products by converting them Appropriate secondary containment for the diesel skid into value-added products. tanks, chemical and scheduled waste storage areas was verified to be properly maintained at the POM. Disposal of schedule waste was done by an appointed contractor that is licensed by the Department of Environment i.e. ENV Consultancy & Monitoring Services Latest SW disposal was on 23 Feb 2018 and records maintained. Recycling of crop residues / biomass i.e. EFB and POME had been implemented. Recycling bins of three different colour codes for specific recycle waste were available in the POM and were used for solid waste segregation and recycling. The solid waste management and disposal plan using landfills was also available . 4.5.3.3 Indicator 3: The palm oil mill Standard operating procedure for the handling of used Complied management shall establish chemicals classified as Scheduled Waste has been Standard Operating Procedure developed and adhered to accordingly. for handling of used chemicals At the POM, the disposal of used chemicals and containers that are classified under were done in accordance with their schedule on waste Environment Quality management as planned and according to the legal Regulations (Scheduled Waste) requirements. 2005, Environmental Quality Stores for scheduled waste were inspected. The POM has Act, 1974 to ensure proper and a proper Scheduled Waste Store for storing scheduled safe handling, storage and waste until time of disposal by DOE authorized waste disposal. Scheduled waste shall disposal contractor. Records of e-Consignments are in be disposed as per order. Latest SW disposal was on 24 Feb 2018 and Environmental Quality Act 1974 records maintained. (Scheduled Wastes) Regulations, 2005. 4.5.3.4 Indicator 3: Domestic waste Domestic waste at line site was disposed using the Complied should be disposed as such to designated landfill at the nearest estate, i.e. Gomali estate. minimise the risk of The management of the landfill is satisfactory. contamination of the environment and watercourse. P a g e 25 | 37
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4.5.4 C4: Reduction of pollution and emission including greenhouse gas 4.5.4.1 Indicator 1: An Audit of all Environmental internal audits were conducted by Complied polluting activities shall be Sustainability Team. The most recent MSPO internal audit conducted, including had indicated that there were evidence of proper greenhouse gas emissions, monitoring, e.g. solid waste - landfill management, water particulate and soot emissions, pollution - water sampling and testing, water treatment for scheduled wastes, solid wastes drinking purposes. and effluent. Level of Greenhouse gases (GHG) emissions are monitored on yearly basis through the GHG calculation methodology accepted for RSPO and ISCC GHG calculations and certifications which are achieved and valid. Internal audit reports and GHG emissions are satisfactorily done and monitored. 4.5.4.2 Indicator 2: An action plan to Environmental Impact Assessment (EIA) on potential Complied reduce identified significant pollution to water, gaseous emissions to air and pollutants and emissions shall contamination on land was reviewed in Mar 2018. be established and implemented. POM gas emissions also monitored online by DOE, using the Continuous Emissions Monitoring System (CEMS) and assisted by the Ringelmann chart. It was verified to be within the permissible limits of DOE. POME treatment, monitoring and land application were monitored, maintained and adhered to DOE regulations. Land application of POME was channelled to nearest estate. 4.5.4.3 Indicator 3: Palm oil mill effluent Significant pollutants and greenhouse gas (GHG) Complied (POME) shall be treated to emissions were identified, e.g. POME, diesel / fuel and ensure compliance with fertilizer usage have been documented at the POM. This standards as stipulated in the has been verified on-site. relevant Environmental Quality In addition, the POM has achieved the ISCC EU (Prescribed Premises) (Crude certification for sustainable biofuels production. Thus the Palm Oil) Regulations 1977. GHG emissions calculation is up to date and has been POME discharge limits and compiled for Jan-Dec 2017. GHG calculation report has method should be in also been submitted to RSPO on 10 Mar 2018. accordance with the respective Monitoring and reporting of the significant pollutants to state and national policies and water, gaseous emissions to air and contamination on land regulations. are available and adhered accordingly. Tools and systems used include the DOE online CEMS monitoring for air emissions, water quality at discharge points as per DID regulations and SW disposal were adhering to DOE requirements. The daily CEMS reporting summary chart indicated a maximum of 38.52% and an average of 9.12% opacity (DOE permissible limit is 40% max. opacity). It was verified that the POME is treated using aerobic and anaerobic ponds (total of 7 ponds, consisting of 6 effluent ponds and 1 bio polishing pond) Water samples at the final discharge point were taken at monthly intervals and tested by POM environment officer in charge and analysed to ensure compliance to DOE requirements. Records are maintained and verified on-site to have met the permissible regulatory limits (BOD < 20 ppm). Quarterly report on the environmental monitoring was also done and submitted to DOE, latest report was dated 12 Nov 2017.
4.5.5 C5: Natural water resources 4.5.5.1 Indicator 1: The management Water Management Plans for the POM was reviewed in Complied shall establish water Feb 2018. Action plans has been identified and management plans to maintain implemented accordingly. the quality and availability of
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natural water resources The water management plan had included the source of (surface and ground water). water and how it is being treated for POM use, their usage The water management plan monitored and recorded. The source of water was may include: obtained from Sungai Muar. Licensed to use and collect a) Audit of water usage and water from the river issued by SPAN vide license number: sources. SWUL/LPSA/72/2018, expiring in Dec 2018. b) Monitoring of outgoing water Water quality analysis of Sungai Muar is done at six which may have negative months interval. impacts into the natural waterways at a frequency that Water samples collected and analysis carried out at twice a reflects the mill’s current year for the treated water. The treated water for domestic activities. use meets all the required parameters, including that of c) Ways to optimise water and bacterium count (WHO Specification for Drinking Water nutrient usage and reduce Quality). wastage (e.g. having in place Water usage in the POM from Jan - Dec 2017 ranged from systems for re-use, night 0.99 to 1.43 m3/tonne FFB with an average of 1.33 application, maintenance of m3/tonne FFB which is within industrial norm of 2 m3/tonne equipment to reduce leakage, FFB for such POM capacity. collection of rainwater, etc.). 4.5.5.2 Indicator 2: Where open The POME at the final treatment pond was channelled for Complied discharge of POME into water land application at the nearest estate. No direct discharging course is practiced, mills should to any water course was practised. undertake to gradually phase it out in accordance to the applicable state or national regulations.
P6: Best practices
Clause Requirements Evidence Conformity 4.6.1 C1: Mill management 4.6.1.1 Indicator 1: Standard operating POM has documented SOPs for its operations. The Complied procedures shall be procedures included the following: appropriately documented and 1. Palm Oil Mill Operation from reception of FFB, consistently implemented and Operations for Laboratory, Biogas Plant, Polishing Plant, monitored. Water Treatment Plant, Boiler, Engine room, Workshops etc. for the processing until the delivery of processed oil and POME management. This was revised i.e. Doc No IOI/StOP/A on 01 July 2017 (Issue 02). 2. Quality, Environmental and Occupational Health & Safety Manual and Procedures of Palm Oil Mill - The SOP for pollution prevention includes measuring and monitoring mill effluents and waste disposal / recycling. 3. Procedure for Safe Work and Management of Safety and Health for Workers - The SOP for safe working practices in the POM includes hazards identification, risk Audit and control measures. The hazards include noise, chemicals, heat, fire, fuel spillage, working at heights, working in enclosed space, hot work, lightning, electrocution, machinery, etc. Control measures include the use of PPE, fire drill training, first aid training, etc. and “permit to work system” for the mill.
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Relevant Key Performance Indicators (KPIs) specified for quality, environment, safety and cost control. 4.6.1.2 Indicator 2: All palm oil mills The POM had adhered to their SOPs and best Complied shall implement best practices. management practices. Best Management Practices (BMP) implemented include Water Management, Monitoring of Emissions – Discharges & Pollution, Monitoring of Safety & Heath of Workers, and Water Ponds for Domestic & Recreational purposes.
4.6.2 C2: Economic and financial viability plan 4.6.2.1 Indicator 1: A documented The 5-year Business Management Plan (FY 2017/2018 to Complied business or management plan FY 2022/2023) for the POM was documented and shall be established to reviewed. demonstrate attention to economic and financial viability The Annual Budget for each year include the following: through long-term management (1) Staff and Labour requirements; planning. (2) Crop projection; FFB yield/ha trends;
(3) Mill extraction rates; OER trends; (4) Cost of Production; Cost/mt FFB trends; (5) Cost of Production; Cost/MT CPO trends; (6) Financial indicators covering cost of labour, supervision, maintenance, depreciation, etc.). (7) Budget for Environmental, Social, Safety & Health, Training and Promotions. The Mill and Estate Managers have monitored the operational performance against Key Performance Indications and targets (costs, FFB yields, quality, productivity, pesticides usage, fertilizers usage, etc.). Records of monitoring of costs against budget to achieve specified targets were verified to be available. Performances are discussed in the monthly meetings held at the MU and issues and actions needed are recorded for follow up in the next monthly meeting. The records of these meetings were available and verified during the audit. Monthly, quarterly, half-yearly and yearly reports are submitted to the IOI HQ at Putrajaya. 4.6.3 C3: Transparent and fair price dealing 4.6.3.1 Indicator 1: Pricing mechanisms All of the fresh fruit bunches (FFB) supplied to the mill are Complied for the products and other from IOI’s own estates or diverted FFB from other IOI services shall be documented certified Estates Grouping. The pricing for FFB is available and effectively implemented. at the POM office. 4.6.3.2 Indicator 2: All contracts shall Based on contracts agreed between contractors/service Complied be fair, legal and transparent providers and POM, it is evident that all parties understand and agreed payments shall be the contractual agreements they enter into, and that made in a timely manner. contracts are fair, legal and transparent. Interview with parties concerned confirmed that business practices with local businesses were conducted in a fair and transparent manner. It is further verified that payments to contractors and other service providers are paid within the period specified in the contract agreement. 4.6.4 C4: Contractor 4.6.4.1 Indicator 1: In case of the During external stakeholder’s consultations and during Complied engagement of contractors, training, the contractors are made to understand MSPO they shall be made to requirements. Information such as policies and procedures understand the MSPO are provided. requirements and shall provide Monitoring records on Road Tax, Driving license and the required documentation and Insurances is available. Checks done on sample basis information. verified that the licenses and insurance coverage were still valid.
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4.6.4.2 Indicator 2: The management Contract agreements are signed between the Mill Manager Complied shall provide evidence of or his Assistant and the contractor. The terms and agreed contracts with the conditions of the contract are explained to the contractor. contractor. A copy of the contract is given to the contractors. 4.6.4.3 Indicator 3: The management Acceptance was obtained from the IOI Management. Complied shall accept MSPO approved The acceptance was provided via signing by IOI auditors to verify the Audits Management on the Contract of Agreement for the MSPO through a physical inspection, if Audit and confirmation of the Audit Plan & Auditors, before required. the actual audit.
3.2 Status of Identified Noncompliance and Corrective Actions, Observations and Positive Elements. The status of the Noncompliances (NCR) and Observations (OBS) identified against the MSPO Compliance Indicators is as per the details below:
Audit Type Year Noncompliance (NCR) Observations (OBS) Follow up status Initial Audit / Stage 2 2018 0 0 Next assessment
3.2.1 Year 2018: 0 NC
3.2.2 Year 2018: 0 Observations
3.2.4 Identified Positive Elements
1) The company has continued to maintain and carried out CSR activities such as financial funding for education, social and religious activities. 2) The company has continued to maintain and implement the safety measures and pollution prevention programs and activities. 3) The company provide employment opportunities for the local community and other youths.
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4.2 INTERTEK – MSPO Certificate details for the Gomali POM
Certificate No: MSPO 004A
Original Issue / Start date: 10 Sept 2018 Expiry / End date: 09 Sept 2023 Organisation IOI Corporation Berhad Address of Head Office: Level 28, IOI City Tower 2, Lebuh IRC, IOI Resort City, 62502, Putrajaya, Malaysia Name of POM Dynamic Plantations Bhd (Gomali POM) Address of POM 5th Mile, Jalan Gemas Batu Anam, K.B. No. 102, 85100 Batu Anam, Segamat, Johor, Malaysia MPOB License No: 500117204000 Standards: MSPO MS 2530-4:2013 for the Palm Oil Mill. Certification scope: Production of Crude Palm Oil and Palm Kernel
Details of the Mill and Supply bases covered by this certificate and the tonnage approved are:
GPS Reference Mature OP/ Certified / Name Address Production Titled area- - ha ha Latitude Longitude 5th Mile, Jalan Gemas Batu Gomali POM Anam, K.B. No. 102, 85100 - - 2º36’37.68 ” N 102º40’45.44” E (Capacity: 90 MT/hour) Batu Anam, Segamat, Johor, Malaysia
5th Mile Jalan Gemas Batu 1. Gomali Estate Anam, KB. No 102, 85100 Batu 2º36’48.94” N 102º39’21.12” E 2171 2555.75 Anam, Segamat, Johor Malaysia
Batu Anam, 85100 Segamat, 2. Paya Lang Estate 2º36’28.53” N 102º41’41.36” E 1971 2426.79 Johor.
3. Bahau Estate Batu 5 Jalan Bahau Rompin 2º48’30.75” N 102º26’44.47” E 2187 72100 Bahau Negeri Sembilan 2835.50
4. Bertam Estate Bertam Estate, 76100 Durian 2º17’55.6” N 102º17’30.11” E 411 Tunggal, Melaka. 448.80 5. Bukit Dinding 1 1/2 Miles, Jalan Mentakab, Estate 3º22’39.8” N 102º05’31.36” E 1378 1660.43 28600 Karak, Pahang 6. Kuala Jelei Estate Kuala Jelei Estate, 5km Jalan Tampin, 72109 Bahau, Negeri 2º46’21.56” N 102º22’52.27” E 634 679.26 Sembilan. 7. Tambang Estate Tambang Estate, Batu Anam, 2º38’26.33” N 102º42’53.17” E 1539 Segamat, 85100 Johor. 2019.85 8. Regent Estate 2nd Mile Jalan Batang Melaka 73200 Gemencheh, Negeri 2º30’29.81” N 102º24’8.23” E 1750 2300.27 Sembilan 9. Sagil Estate Sagil Estate, 8 Milestone, Jalan Tangkak - Segamat, 84900 2º19’33.84” N 102º38’6.56” E 2042 2538.60 Tangkak, Johor. 10. Jasin Lalang Estate 5km From 15 Miles Air Merbau Jalan Jasin Bemban, 2º15’4.13” N 102º24’44.81” E 1352 1569.67 Jasin, Melaka 11. Sembilan Tani Kampung Kuala Gemas, Estate (associated 2°38’15.97” N 102°37’03.81” E 212 256.87 outgrower) Gemas, Negeri Sembilan
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The annual tonnages produced at the POM are detailed as follows:
Gomali POM Annual Tonnages (MT) FFB 405,171 CPO 89,134 PK 22,284
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APPENDIX A:
Qualifications of Lead Auditor and Audit Team
Mr. Augustine Loh (AL) – Lead Assessor / Technical Expert (Palm Oil Mill, Environment, Social, Conservation & HCV area, GAP, IPM, Land Use and Supply Chain) – Master in Business Administration, USA and Diploma in Maritime Studies, Singapore
Mr. Augustine Loh is an IRCA Third Party Assessment Lead Auditor and IRCA Lead Tutor for IRCA ISO 9001 and OHSAS 18001 Lead Auditor Courses as well as Tutor for RSPO Certification Programs and Integrated Management System in Intertek, Malaysia. He is a PORLA Licensed Surveyor / Inspector. He has over 25 years of fieldwork and experience in Palm based product survey, supply chain monitoring, inspection and testing. He has successfully completed the IRCA accredited Lead Auditor course in ISO 9001, ISO 14001, OHSAS 18001, ISO 22001, ISO 27001, RSPO Principles and Criteria Lead Assessor Course, RSPO Supply Chain Certification and the International Sustainable Carbon Certification (ISCC) Lead Auditor courses. He has also completed the RSPO training on RSPO P&C, RSPO Palm GHG tool, RSPO RED and RSPO NEXT requirements. He has conducted assessments of organizations in Malaysia, Singapore, Indonesia, Brunei, Thailand, Cambodia and Australia. He is currently the RSPO Regional Program Manager of Intertek Certification International, Malaysia and has performed over 800 auditing days on quality, environmental and safety & health assessments in various sectors including agriculture and oil palm plantations. He was the RSPO CB Assessment Team Leader / Member which audited several RSPO certified Plantation Management Units since 2009. He was the CB Team Leader in the stakeholder consultation and development of the RSPO Cambodian Local Indicators. He is a member of the CB Internal Review Panel for RSPO and MSPO Assessment reports. He is a Lead Auditor in the Malaysian Sustainable Palm Oil (MSPO) certification.
Mr. Sazali Hasni (SH) – Assessor / Technical Expert (Environment, Conservation and HCV area) - Bachelor of Science (Forestry)
Mr. Sazali Hasni (SH) has over 25 years work experience in the forestry sector. He is an IRCA Auditor for ISO 9001 and auditor for the PEFC Chain-of-Custody Certification. He has successfully completed training in the Intertek In House RSPO P&C, MYNI. He has also completed training in the RSPO P&C, MYNI Lead Assessor course He was a member in the stakeholder consultation and development of the Malaysian Criteria & Indicators (MC&I) for Forest management Certification. He has been involved in the auditing of Forest Management Certification for the Perak State Forestry Department and Pahang State Forestry Department. He has also been involved with a German based company in testing their criteria for carbon tracing in an oil palm plantation in 2011. He had also acted as the regional consultant to International Tropical Timber Organization (ITTO) for the Asia Pacific region in the Evaluation and Monitoring of Projects funded by the organization from 1994 to 1998. Projects funded are mainly forestry related such as reforestation, conservation, community forestry apart from other research based projects. He is an Auditor in the Malaysian Sustainable Palm Oil (MSPO) certification.
Mr. Mohd Nazib bin Marwan (MNM) – Assessor / Technical Expert (Occupational Health & Safety and Social) – Diploma in Mechanical Engineering
Mr Mohd Nazib Marwan has over 15 years work experience in occupational safety and health sector (since 2003). He has 5 years working experience as Factories and Machinery Inspector with Department of Occupational Safety & Health Malaysia (DOSH) and earlier he has been certified with Certificate for Safety and Health Officer from National Institute of Occupational Safety and Health (NIOSH). He has successfully completed the IRCA accredited Lead Auditor Course in ISO 9001:2008, OHSAS 18001: 2007. He is also an ISO 9001 Lead Auditor and OHSAS 18001 Lead auditor with Intertek, Malaysia and has performed over 400 auditing days on quality, safety and health in various sectors including palm oil industries since 2012. He has successfully completed training in the RSPO P&C, MYNI Lead Assessor course. He is a member of the RSPO Assessment team which audited several RSPO certified Plantation Management Units since 2014. He is an Auditor in the Malaysian Sustainable Palm Oil (MSPO) certification.
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Appendix B:
Audit Plan (Actual) – POM and Estates Grouping audited simultaneously Date Time Assessors and Assessment Activity Asssessment Team 28 May 8.00 am – Travel to Gomali Palm Oil Mill 2018 11.00 am Monday 11.00 am – Opening Meeting and Briefing at POM Office 11.30 am (attended by representatives from the Estates) (Day 1) 11.30 am – Document Review and Audit by Auditors on respective MSPO Principles :1 to 6 for POM 1.00 pm 1.00 pm – Lunch Break 2.00 pm 2.00 pm – AL SH MNM 5.00 pm Site Audit at Mill Site Audit at Mill Site Audit at Mill P1 Management P1 Management P1 Management Commitment Commitment Commitment P2 Transparency P3 Compliance to Legal P3 Compliance to Legal P3 Compliance to Legal requirements requirements requirements P5 Environment, natural P4 Social responsibility, P6 Best Practices resources, biodiversity and health, safety and ecosystem services employment condition
Verification of effectiveness of corrective actions for non-conformances (previous audit – if applicable) 5.00 pm – Travel to Hotel & Break 6.00 pm 6.00 pm – Team Meeting and Discussion 7.00 pm
Date Time Assessors and Assessment Activity 29 May 8.30 am – AL SH MNM 2018 12.30pm Site assessment at Bahau Site assessment at Bahau Site assessment at Bahau Tuesday estate estate estate P1 Management P1 Management P1 Management (Day 2) Commitment Commitment Commitment P2 Transparency P3 Compliance to Legal P3 Compliance to Legal P3 Compliance to Legal requirements requirements requirements P5 Environment, natural P4 Social responsibility, P6 Best Practices resources, biodiversity and health, safety and P7 New Planting ecosystem services employment condition
12.30 pm – Lunch Break 1.30 pm 1.30 pm - Continue site assessment at Bahau estate 5.30 pm 5.30 pm – Travel to Hotel & Break 6.30 pm 6.30 pm – Team Meeting and Discussion 7.30 pm
Date Time Assessors and Assessment Activity 30 May 8.30 am – AL SH MNM 2018 12.30pm Site assessment at Bertam Site assessment at Bertam Site assessment at Bertam Wednesday estate estate estate
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P1 Management P1 Management P1 Management (Day 3) Commitment Commitment Commitment P2 Transparency P3 Compliance to Legal P3 Compliance to Legal P3 Compliance to Legal requirements requirements requirements P5 Environment, natural P4 Social responsibility, P6 Best Practices resources, biodiversity and health, safety and P7 New Planting ecosystem services employment condition
12.30 pm – Lunch Break 1.30 pm 1.30 pm - Continue site assessment at Bertam estate 5.30 pm 5.30 pm – Travel to Hotel & Break 6.30 pm 6.30 pm – Team Meeting and Discussion 7.30 pm
Date Time Assessors and Assessment Activity 31 May 8.30 am – AL SH MNM 2018 12.30pm Site assessment at Jasin Site assessment at Jasin Site assessment at Jasin Thursday Lalang estate Lalang estate Lalang estate P1 Management P1 Management P1 Management (Day 4) Commitment Commitment Commitment P2 Transparency P3 Compliance to Legal P3 Compliance to Legal P3 Compliance to Legal requirements requirements requirements P5 Environment, natural P4 Social responsibility, P6 Best Practices resources, biodiversity and health, safety and P7 New Planting ecosystem services employment condition
12.30 pm – Lunch Break 1.30 pm 1.30 pm - Continue site assessment at Jasin Lalang estate 5.30 pm 5.30 pm – Travel to Hotel & Break 6.30 pm 6.30 pm – Team Meeting and Discussion 7.30 pm
Date Time Assessors and Assessment Activity 1 Jun 8.30 am – AL SH MNM 2018 12.30pm Site assessment at Site assessment at Site assessment at Friday Tambang estate Tambang estate Tambang estate P1 Management P1 Management P1 Management (Day 5) Commitment Commitment Commitment P2 Transparency P3 Compliance to Legal P3 Compliance to Legal P3 Compliance to Legal requirements requirements requirements P5 Environment, natural P4 Social responsibility, P6 Best Practices resources, biodiversity and health, safety and P7 New Planting ecosystem services employment condition 12.30 pm – Lunch Break 1.30 pm 1.30 pm - Continue site assessment at Tambang estate 5.30 pm 5.30 pm – Travel to Hotel & Break 6.30 pm 6.30 pm – Team Meeting and Discussion 7.30 pm
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Date Time Assessors and Assessment Activity 2 Jun 8.30 am – AL SH MNM 2018 11.00 am Site assessment at Palm Stakeholders’ Consultation on the following categories (see Saturday Oil Mill Notes 1 and 2 below – subject to availability): P1 Management Contractors (Day 6) commitment and Suppliers responsibility Transporters P2 Transparency NGOs P3 Compliance to legal Government Department / Agencies requirements Local Community Settlers, in the case of independent and organized smallholders. Notes It is mandatory for the PMU to inform Intertek and provide the information (as a minimum the no. of stakeholders in each applicable category and contact number) on the stakeholders prior to the audit. This will facilitate the random and impartial selection of stakeholders (including independent and organized smallholders, where applicable) and to meet the sample size requirement. 11.00 am – Preparation for Closing Meeting 12.00 pm 12.00 pm – Team Meeting and Discussions with POM Management Representative 12.30 pm 12.30 pm – Closing Meeting & Briefing at Palm Oil Mill Office 1.00 pm 1.00 pm Travel back to Kuala Lumpur onwards
Appendix: Audit Team Competency Matrix (Audit Areas) Lead Auditor (LA) / Auditor (A) / Technical Expert (TE) MSPO Areas AL SH MNM (A / TE) (A / TE) (A / TE ) P1 Management commitment and responsibility √ P2 Transparency √ P3 Compliance to legal requirements √ √ √ P4 Social responsibility, health, safety and employment condition √ P5 Environment, natural resources, biodiversity and ecosystem services √ P6 Best Practices √ P7 Development of new plantings (at Estates) √
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APPENDIX C:
Location Map of Gomali Palm Oil Mill, Segamat, Johor
IOI Gomali grouping
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