RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
RSPO PRINCIPLES & CRITERIA PUBLIC SUMMARY REPORT ANNUAL SURVEILLANCE ASSESSMENT 2
Malaysia Kemasul Palm Oil Mill Felda 2014
Report prepared by: Simon Selvaraj (Lead Assessor) Certification decision by: Gerben Stegeman (Certifier) Certifying Office Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100 Klang, Selangor, Malaysia [email protected] Tel: +603-3377 1600 / 1700
Control Union Certifications Control Union Certifications is a member of the Control Union World Group - an international inspection and certification body. CUC performs assessments and certification in many agricultural based fields such as FSC, RSPO, and Organic production, Sustainable Textile Production, Organic Exchange, GLOBALGAP, HACCP, BRC, GMP and GTP.
CUC is accredited by the Dutch Council of Accreditation (RVA) on the European quality standard EN 45011 for the inspection and certification of CUC Organic program (according to the EU regulation 2092/91) and GLOBALGAP program. When requested a copy of the accreditation certificate can be obtained from CUC.
Control Union (Malaysia) Sdn Bhd is a registered affiliate member of RSPO and is a private limited company owned by the Control Union World Group based in Malaysia. Control Union (Malaysia) Sdn Bhd is authorized to conduct and issue certification on behalf of RSPO and Control Union Certifications. RSPO Membership Number 8-0025-06-000-00 RSPO Approval Date 12/01/2006 Affiliate Membership http://www.rspo.org/en/member/339
RSPOPC-SUM-REPORT.F01 JULY2013 Page 1 of 48 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700
RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
Table of Contents PART 1: SCOPE OF THE CERTIFICATION ASSESSMENT AUDIT ...... 4
1.1 COMPANY AND CONTACT DETAILS ...... 4 1.2 RSPO MEMBERSHIP & CERTIFICATION DETAILS ...... 4 1.3 ANNUAL SURVEILLANCE ASSESSMENT DETAILS ...... 4 1.4 ASSESSMENT TYPE ...... 4 1.5 LOCATION OF THE PALM OIL MILL ...... 4 1.6 PALM OIL MILL OUTPUT AND APPROXIMATE TONNAGES CERTIFIED ...... 4 1.7 GENERAL DESCRIPTION OF SUPPLY BASE ...... 5 1.7.1 Location of the Supply Base ...... 5 1.7.2 Statistics of the Supply Base and Estimated Tonnes of FFB produced per year ...... 5 1.7.3 Conservation and HCV Area (Ha) ...... 5 1.7.4 Percentage of Planted Oil Palm by different Age Ranges ...... 6 1.7.5 Calculation of the Number of Production Units (N) to Sample for the Mill ...... 6 1.8 PROGRESS OF ASSOCIATED SMALLHOLDERS OR OUT -GROWERS , IF APPLICABLE TO THIS ASSESSMENT ...... 6 1.9 LOCATION MAP FOR THIS CERTIFICATION UNIT (S EE APPENDIX 1) ...... 6 PART 2: PARTIAL CERTIFICATION ...... 6
2.1 MANAGEMENT STRUCTURE ...... 6 2.2 NON -COMPLIANCE IDENTIFIED WITH 2.1 ABOVE ...... 7 2.3 SUMMARY OF THE TIME BOUND PLAN ...... 7 2.4 UN-CERTIFIED UNITS OR HOLDINGS ...... 8 2.5 SUMMARY OF THE FINDINGS FOR PARTIAL CERTIFICATION ...... 17 2.6 PARTIAL CERTIFICATION AUDIT AGENDA ...... 17 PART 3: AUDIT PROCESS...... 17
3.1 ABOUT THE CERTIFICATION BODY ...... 17 3.2 AUDIT TEAM ...... 17 3.2.1 Qualifications of the Lead Auditor ...... 17 3.2.2 Qualifications of the Assessment Team ...... 18 3.3 AUDIT METHODOLOGY ...... 20 3.3.1 General Overview ...... 20 3.3.2 Assessment agenda for this Audit ...... 21 PART 4 ASSESSMENT FINDINGS ...... 22
4.1 LEAD ASSESSOR ’S SUMMARY AND RECOMMENDATION FOR CERTIFICATION ...... 22 4.2 SUMMARY OF THE FINDINGS BY PRINCIPLES AND CRITERIA ...... 22 Principle 1: Commitment to Transparency ...... 22 Principle 2: Compliance with Applicable Laws and Regulations ...... 23 Principle 3: Commitment to Long-Term Economic and Financial Viability ...... 24 Principle 4: Use of Appropriate Best Practices by Growers and Millers ...... 24 Principle 5: Environmental Responsibility and Conservation of Natural Resources and Biodiversity ...... 27 Principle 6: Responsible Consideration of Employees and of Individuals and Communities by Growers and Millers ...... 29 Principle 7: Responsible Development of New Plantings ...... 31 Principle 8: Commitment to Continuous Improvement in Key Areas of Activity ...... 31 4.3 NON -CONFORMITY RAISED DURING THIS AUDIT AND ANY FROM THE PREVIOUS YEAR , IF APPLICABLE ...... 32 4.3.1 Non-Conformities Identified during this Audit ...... 33 4.3.2 Non-Conformity Identified during the last ASA, not applicable for MA ...... 37 NO NC WERE RAISED DURING LAST ASA1 ...... 37 4.3.3 Observations Raised During this Audit ...... 37 5.1 ISSUES THAT WERE RAISED DURING THE STAKEHOLDER CONSULTATION , IF ANY ...... 37
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
PART 5: RSPO SUPPLY CHAIN CERTIFICATION ...... 38
5.1 POM INCLUDED IN THE SCOPE OF THE AUDIT ...... 38 5.2 CONFIRMATION OF THE COMPANY ’S SUMMARY OF ANNUAL CERTIFIED VOLUME OF RSPO CERTIFIED PALM OIL AND PALM KERNEL OVER A SPECIFIED PERIOD ...... 38 5.3 SUMMARY REPORT INCLUDING A BRIEF DESCRIPTION OF THE SCOPE OF CERTIFICATION ...... 38 5.4 MONTHLY RECORDS OF CERTIFIED AND UNCERTIFIED FFB RECEIVED SINCE THE LAST AUDIT ...... 38 5.5 MONTHLY RECORDS OF CERTIFIED CPO AND PK PRODUCED SINCE THE LAST AUDIT ...... 39 5.6 RECORDS OF CERTIFIED CPO & PK SOLD UNDER GREEN PLAM TO BUYERS SINCE THE LAST AUDIT , IF ANY ...... 39 5.7 RECORDS OF CERTIFIED CPO & PK SOLD UNDER UTZ ETRACE TO BUYERS SINCE THE LAST AUDIT , IF ANY .... 39 5.8 NON -CONFORMITIES IDENTIFIED DURING THIS AUDIT ...... 39 5.9 FINAL CERTIFICATION DECISION BY CONTROL UNION FOR THE RSPO SCCS AUDIT OF THE POM ...... 40 PART 6: CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY ...... 41
6.1 DATE OF NEXT ASA ...... 41 6.2 DATE FOR CLOSURE OF NON -CONFORMITIES ...... 41 6.3 SIGNING BY THE CLIENT ...... 41 6.4 SIGNING BY THE LEAD AUDITOR ...... 41 6.5 SIGNING BY THE CERTIFIER ...... 41 PART 7: APPENDICIES ...... 42
APPENDIX 1: LOCATION MAP FOR THIS CERTIFICATION UNIT ...... 42 APPENDIX 2: LIST OF ABBREVIATIONS ...... 48
RSPOPC-SUM-REPORT.F01 JULY2013 Page 3 of 48 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700
RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
PART 1: SCOPE OF THE CERTIFICATION ASSESSMENT AUDIT
1.1 Company and Contact Details Company Name: Felda Global Ventures Plantation(M) Sdn Bhd Business Address: PSQM Department FGVPM, Tingkat 7, Balai Felda, Jalan Gurney 1, 54000, Kuala Lumpur. Contact Person: Mr. Norazam Abdul Hameed Office Telephone: 03-26987772 E-Mail: [email protected] Web Site: www.feldaglobal.com Other Certifications Held: ISO 14001, ISO 18001 & ISO 9001:2008
1.2 RSPO Membership & Certification Details RSPO Membership Number: 1-0013-04-000-00 Registered Client Name: Felda Global Ventures Plantation(M) Sdn Bhd Certificate Number: CU-RSPO-818737 Start Date Of Certificate: 20/12/2012 End Date Of Certificate: 19/12/2017 Date Of Original Certification: 20/12/2012 Scope: Certification of the Palm Oil Mill and Supply Bases Type Of Certification: Single site Duration Of Certificate: 5 Years from date of certification
1.3 Annual Surveillance Assessment Details Dates Of This Audit: 07 – 08 July 2014 Audit Number: ASA 2
1.4 Assessment Type This is a RSPO Principles &Criteria Compliance assessment of the palm oil mill and its respective supply bases as listed in this report below.
1.5 Location of the Palm Oil Mill Name Mill Location GPS Reference Palm Oil Mill Capacity (POM) MT/Hour Address Longitude Latitude Kemasul Palm Oil KS Kemasul, 28300 Triang, Pahang. 40 3.179845N 102.349660E Mill Malaysia.
1.6 Palm Oil Mill Output and Approximate Tonnages Certified Figures below are from: • Only from certified supply bases (Y/N). No • Combining certified with uncertified supply bases (Y/N). Yes • If the Mill is receiving FFB from uncertified supply bases outside the audit scope, such uncertified sources is highlighted under the following sections as seen applicable: a. PART 1, Section 1.7 – General Description of Supply Base, b. PART 2: Partial Certification, Section 2.4 – Uncertified Units or Holdings, c. PART 5: RSPO Supply Chain Certification of this report Projected Production from the Actual Production for this Audit Year Projected 12 Months (MT) las t 12 Months (MT) 2013/2014 (MT) Forecast Certified in this Report FFB CPO PK FFB CPO PK FFB CPO PK 183,368 45,280 12,450 132,549.41 28,014.5 7,010.39 199,450 39,890 9,972
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
1.7 General Description of Supply Base All the supply bases are within the region of Triang, Pahang. This audit has carried out to ensure full compliance with RSPO requirement. FELDA owns and operates 71 oil mills for processing the crop from its oil palm smallholdings, estates and research stations totalling about 720,000ha, as well as FFB purchased from smallholders. Group scheme by FELDA is explained in section 3.3 below.
1.7.1 Location of the Supply Base Oil Palm Location GPS reference Area Summary (Ha) OPP Plantation Name Address Longitude Latitude Total Mature OPP 1 Ladang Felda Ladang Felda Mengkarak Mengkarak 1 01, D/A Felda 3.287151N 102.298803E 2,678.19 2,678.19 Chemomoi, 28310 Triang, Pahang OPP 2 Ladang Felda Ladang Felda Mengkarak Mengkarak 2 02, D/A Felda, 3.298545N 102.333550E 2,368.57 2,368.57 Chemomoi, 28310 Triang, Pahang OPP 3 Felda Pejabat Felda 2,536.39 2,536.39 Chemomoi Chemomoi, 28310, 3.243585N 102.242726E Triang, Pahang OPP 4 Felda Kemasul Pejabat Felda Kemasul 2,567.23 2,567.23 3.286698N 102.224048E 28320,Triang, Pahang TOTAL 10,150.38 10,150.38
1.7.2 Statistics of the S upply Base and Estima ted Tonnes of FFB produced per y ear OPP Oil Palm Plantation Estimated FFB/Year (MT) Planting Years Cycle (Years) OPP 1 Ladang Felda Mengkarak 1 69,880 1987/1996 25 OPP 2 Ladang Felda Mengkarak 2 58,500 1987/1991 25 OPP 3 Felda Chemomoi 42,350 1997/2011 25 OPP 4 Felda Kemasul 28,720 1987/1991 25 TOTAL 199,450 - -
1.7.3 Conservation and HCV Area (Ha) * HCV part of OPP Oil Palm Plantation Conservation Area (Ha) HCV Area (Ha) Conservation OPP 1 Ladang Felda Mengkarak 1 - - - OPP 2 Ladang Felda Mengkarak 2 - - - OPP 3 Felda Chemomoi - - - OPP 4 Felda Kemasul - - - TOTAL * Indicate if HCV area is part of the Conservation Area. If the HCV area is part of the Conservation Area, then “YES” otherwise, “No”
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
1.7.4 Percentage of Planted Oil Palm by different Age Ranges Planting Years by 5 year Ranges OPP Before 1990 1991 - 1995 1996 -2000 2001 -2005 2006 – 2010 2011 – 2015 Total 2,678.19 - - - - 2,678.19 OPP 1 - [100%] [100%] 2,321.19 47.38 - - - 2,368.57 OPP 2 - [98%] [2%] [100%] - 2,003.74 - 532.64* 2,536.39 OPP 3 - - [79%] [21%] [100%] 2,567.23 - - - - 2,567.23 OPP 4 - [100%] [100%] *Replanting
1.7.5 Calculation of the Number of Production Units (N) to Sample for the Mill N = 0.8 √Y, where “Y” is the number of units, with the result always to be rounded “up” to the next whole integer. Where only a sample of the supply base is assessed, units not previously assessed, or assessed earlier in the certification program, are to be preferred over those more recently assessed For the Mill, how many units make up the production base? Owned estates (Y) N = 0.8 √Y Smallholders (Z) N = 0.8 √Z 4 2 0 0 Explanation as to the selection of estates sampled As per above formula and random selection are made for compliance assessment.
1.8 Progress of associated Smallholders or Out-growers, if applicable to this assessment Progress of associated Smallholders or Out-growers towards Compliance with relevant Standards - should be in accordance to the 3 year implementation plan, if applicable to this assessment Associated smallholders or out-growers are managed and monitored against the RSPO Group Scheme standards and an agreement signed between the group managers to comply with the RSPO standards has been mutually agreed. An initiative is being taken to include the self-managed smallholder to be associated within the time frame given.
1.9 Location Map for this Certification Unit (See Appendix 1)
PART 2: PARTIAL CERTIFICATION The rules for partial certification allow organizations that have a majority holding in and / or management control of more than one autonomous company growing oil palm to certify individual management units and / or subsidiary companies subject to certain rules.
2.1 Management Structure Section Criteria Yes/No If “Yes” If “No” 2.1.1 Is the certified operation (POM and supply base as No Section 2 is Go to 2.1.2 detailed above) a stand-alone operation and there are N/A no other plantations or mills owned by the same company? 2.1.2 Is the certified operation part of a simple structure of Yes Go to 2.1.5 Go to 2.1.3 operations owned by one company? 2.1.3 Are there statements of the ultimate controlling Yes Go to 2.1.4 Go to 2.2.1 shareholders and directors in the managing agency company/companies: a. Explaining the legal relationship and the management arrangements with the subsidiary companies and / or with any operating groups? 2.1.4 b. A statement of commitment to complying with the Yes Go to 2.4 Go to 2.2.2
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
spirit of the RSPO for all companies and subsidiaries involved with the growing of oil palm and for the production of palm oil? 2.1.5 Is there a time bound plan in place for all subsidiaries, Yes Go to 2.3 2.2.3 estates and palm oil mills? 2.1.6 Is the parent company or one of its majority owned and / Yes or managed subsidiaries a member of RSPO.
2.2 Non-compliance Identified with 2.1 Above Section Non-compliance findings NC raised Category 2.2.1 There is no explanation as to the company’s structure and therefore it - Major Is not possible to conduct an effective audit against the rules for partial certification. 2.2.2 There is no statement of commitment to complying with the spirit of - Major the RSPO for all companies within the company structure. 2.2.3 There is no time bound plan in place for the certification for all - Major subsidiaries, estates and mills. 2.2.4 No applicable membership of the RSPO. - Major
2.3 Summary of the Time Bound Plan Section Requirement Findings and any action required Compliance 2.3.1 Does the plan Yes, the plan includes all subsidiaries, estates and mills. include all subsidiaries, estates and mills? 2.3.2 Is the time bound The company presented a table showing how the certification Yes plan challenging? audits are planned to fit into the period ending and it is Age of considered to be challenging plan (see time bound plan below) plantations. Location. Mill development. Infrastructure. Compliance with applicable law. 2.3.3 Have there been Have some unit is already certified see as below time bound Yes any changes since plan the last audit? Are they justified? 2.3.4 If there have been Have change in the time bound plan with already certified and Yes changes, what in progress audit circumstances have occurred? 2.3.5 Have there been No comment receive Yes any stakeholder comments? 2.3.6 Have there been Yes. Will adhere to new planting procedure once finalise Yes any newly acquired subsidiaries? 2.3.7 Have there been No currently being a year advance Yes any isolated lapses in the implementation of RSPOPC-SUM-REPORT.F01 JULY2013 Page 7 of 48 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700
RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
the plan? 2.3.8 Has there been any No systematic failure to proceed with the implementation of the plan? 2.3.9 General statement Felda is following the time bound plan accordingly. as to progress made since the last audit?
2.4 Un-Certified Units or Holdings NOTE: Companies may demonstrate compliance by clear evidence of a self-audit (i.e. an internal audit for all subsidiaries, estates and Palm Oil Mills) Section Requirement Findings and any action required Compliance 2.4.1 Did the company Yes. Yes conduct an internal audit? If so, has a positive assurance statement been produced? 2.4.2 No replacement No replacement of primary forest and HCV. Yes after dates defined in NIs Criterion 7.3 of: • Primary forest. • Any area identified as containing High Conservation Values (HCVs). • Any area required to maintain or enhance HCVs in accordance with RSPO criterion 7.3. 2.4.3 Any new plantings No new planting up to this period of assessment. However, as Yes since January 1 st explained in partial findings at table 2.5, Felda will adhere to 2010 must comply new planting procedure when necessary. with the RSPO New Plantings Procedure. 2.4.4 Any Land conflicts None noted. No stakeholder comments or complaints received. Yes are being resolved through a mutually agreed process, e.g. RSPO Grievance procedure or Dispute Settlement Facility, in accordance with RSPO criteria 6.4,
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
7.5 and 7.6. 2.4.5 Any Labor disputes None noted. No stakeholder comments or complaints received. Yes are being resolved through a mutually agreed process, in accordance with RSPO criterion 6.3. 2.4.6 Any Legal non- None noted. No stakeholder comments or complaints received. Yes compliance is being resolved in accordance with the legal requirements, with reference to RSPO criteria 2.1 and 2.2.
TIME BOUND PLAN FORECAST FOR RSPO CERTIFICATION OF ALL PALM OIL MILLS & SUPPLY BASES Targeted RSPO Current Certification Supply Bases (estates, s/n Palm Oil Mill Country Certification Status as per this plantations, associations) Year Audit Felda Kota Gelanggi 1 Felda Kota Gelanggi 2 1 Kota Gelanggi 1 Malaysia Felda Kota Gelanggi 3 2010 Certified Felda Kota Gelanggi 4 Felda Kota Gelanggi 5/6 Felda Lepar Utara 3 Felda Lepar Utara 7 2 L. Utara 6 Malaysia Felda Lepar Utara 8 2010 Certified Felda Lepar Utara 9 Felda Lepar Utara 11 FTP Jengka 13 FTP Jenderak Selatan FTP Jenderak Utara F Jengka 1 Certified 14.01.2013 3 Jengka 21 Malaysia 2010 FTP Sg. Tekam Utara BSI F Jengka 24/25 FTP Jengka 12 FAS PPPTR/UKA FTP Jengka 2 FTP Jengka 3 FTP Jengka 5 FTP Ulu Jempol Certified 13.12.2012 4 Jengka 3 Malaysia 2010 FTP Jengka 4 CUC FTP Jengka 6 FTP Jengka 7 F Bukit Tajau
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
F Sg. Tekam FTP Jengka 8 Certified 13.12.2012 5 Jengka 8 Malaysia FTP Jengka 9 2010 CUC FTP Jengka 10 FTP Jengka 11
F Lepar Utara 2 FAS Lepar Utara 10 F Lepar Utara 1 Certified 12.09.2012 6 L. Utara 4 Malaysia 2010 F Lepar Utara 4 BSI FP Lepar Utara 5 FP Lepar Utara14 FTP Jengka 18 FTP Jengka 19 FTP Jengka 21 FTP Jengka 22 FTP Jengka 23 FTP Sg. Nerek Certified 16.01.2013 7 Jengka 18 Malaysia 2010 F Jengka 20 BSI F Kg. Awah FTP Jengka 14 FTP Jengka 15 FTP Jengka 16 FTP Jengka 17 FTP Padang Piol Certified 13.12.2012 8 Padang Piol Malaysia 2010 FTP Sg. Retang CUC FTP Sg. Mas, FTP Sening Certified under TUV 9 Adela Malaysia FTP Adela 2011
FGV Kledang 02 F Tunggal FTP Sg Mas FTP Papan Timur FTP Aping Barat Certified under TUV 10 Lok Heng Malaysia 2011 F Lok Heng Barat F Lok Heng Selatan F Lok Heng Timur F Pasak F Semencu F Air Tawar 1 Certified 25.07.2012 11 Semenchu Malaysia F Air Tawar 3 2011 SGS F Air Tawar 4 F Air Tawar 5 F Air Tawar 2 F Aping Timur FTP Bukit Wa Ha Certified on 12 Waha Malaysia 2011 FTP Simpang Wa Ha 21.05.2012 Agrovet FTP Bukit Easter FP Terapai 3 FTP Kepayang Certified 7.01.2013 13 B. Kepayang Malaysia FTP Mayam 2011 Sirim FTP Kumai FTP Purun 14 Bukit Mendi Malaysia FTP Bukit Mendi 2011 5.10.2012 Moody RSPOPC-SUM-REPORT.F01 JULY2013 Page 10 of 48 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700
RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
FTP Bukit Puchong F Mengkuang F Sg Kemahal FP Mengkarak 1 FP Mengkarak 2 15 Kemasul Malaysia 2011 Certified FTP Kemasul F Chemomoi FP Bera Selatan 1 FP Bera Selatan 4 FTP Sebertak 16 Tementi Malaysia 2011 Certified FTP Rentam FTP Tementi
FTP Palong Timur 1 FTP Palong Timur 2 FTP Palong Timur 3 FP PALONG TIMUR 04 FP PALONG TIMUR 05 FP PALONG TIMUR 06 FP PALONG 17 17 Palong Timor Malaysia FP PALONG 18 2012 2015 FTP Palong 1 FTP Palong 2 FTP Palong 3 FTP Palong 4 FTP Palong 5 FTP Palong 6 FTP Pasir Besar FP Triang 2/4 F Triang 1 18 Triang Malaysia 2012 Certified F Triang 3 FP Triang Selatan 1 F Bukit Tongkat F Ulu Belitong F Bukit Permai 19 Belitong Malaysia F Layang-Layang 2012 Certified 13 Jun 2014 F Air Hitam F Ulu Penggeli FAS Ulu Belitong FTP Pasir Raja Certified on 20 Bukit Besar Malaysia FTP Bukit Besar 2012 28.03.2014 FTP Bukit Ramun FTP Kahang Barat 21 Kahang Malaysia FTP Kahang Timur 2012 Certified 13 Jun 2014 FTP Ulu Dengar FTP Taib Andak FTP Bukit Batu Certified on 22 Kulai Malaysia 2012 FTP Ulu Tebrau 14.04.2014 FAS Bkt Besar/Taib Andak
F Nitar 1 Certified on 13hb Jun 23 Nitar Malaysia F Nitar 2 2012 2014 FP Nitar Timur
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
FP Inas Selatan
F Inas Utara Certified on FTP Sg. Sibol 24 Penggeli Malaysia 2012 14.04.2014 FTP Sg. Sayong
FTP Penggeli Timur
FTP Linggiu
FP Sahabat 9/15 FP Sahabat 16 25 Baiduri Ayu Malaysia FP Sahabat 55 2013 Certified on 2014 F Sahabat 1 F Sahabat 2 FP Sahabat 11 FP Sahabat 12 FP Sahabat 13 FP Sahabat 17 26 Embara Budi Malaysia 2013 Certified on 2014 FP Sahabat 56 F Sahabat 3 F Sahabat 4 F Sahabat 5 FP Sahabat 42 FP Sahabat 43 27 Kembara Sakti Malaysia FP Sahabat 53 2013 Certified on 2014 FP Sahabat 54 FP Sahabat 35 FP Sahabat 10 FP Sahabat 39 28 L. Kemudi Malaysia FP Sahabat 44 2013 Certified on 2014 FP Sahabat 38 FP Sahabat 45 FP Bukit Sagu 4 FP Bukit Sagu 6 FP Bukit Sagu 7 29 Bukit Sagu Malaysia FP Bukit Sagu 8 2013 Certified on 2014 F Bukit Sagu 2 F Bukit Sagu 1 F Bukit Sagu 3 F Lepar Hilir 1 F Lepar Hilir 2 F Lepar Hilir 3 30 Lepar Hilir Malaysia F Lepar Hilir 4 2013 Certified on 2014 FP Lepar Hilir 5 FP Lepar Hilir 6 FP Lepar Hilir 8 FTP Seberang Tayor FTP Neram 1 FTP Neram 2 31 Neram Malaysia 2013 2015 FP NERAM 03 FP CERUL 03 FTP Bukit Kuantan FTP Panching Utara 32 Pancing Malaysia FTP Panching Selatan 2013 2015 FTP Panching Timur 33 M. Puspita Malaysia FP Sahabat 7 2014 Certified on 2014
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
FP Sahabat 46 FP Sahabat 48 FAS Sahabat 6,9,57 FAS Sahabat 17 FP Sahabat 50 34 N. Permata Malaysia FP Sahabat 51 2014 Certified on 2014 FP Sahabat 52 F Tersang 1 F Tersang 2 F Tersang 3 35 Tersang Malaysia F Tersang 4 2014 2017 F Sg.Koyan 1 F Sg.Koyan 2 F Sg.Koyan 3 FP Besout 6, FP Besout 7 FTP Besout 1 36 Besout Malaysia FTP Besout 2 2014 Certified on 2014 FTP Besout 3 FTP Besout 4 FTP Besout 5 FTP Gedangsa F Sg Tenggi 37 Sg Tengi Malaysia 2014 Certified on 2014 FTP Soeharto FTP Sg. Tengi Selatan FTP Trolak Selatan Pending FTP Sg. Klah 38 Trolak Malaysia Certification Certified on 2014 FTP Trolak Utara decision 2014 FTP Trolak Timur FP Bera Selatan 5 FTP Keratong 1 FTP Keratong 2 Pending 39 Keratong 2 Malaysia F Keratong 7 Certification 2015 F Keratong 8 decision 2014 F Keratong 9 FP Keratong 11 FTP Keratong 3 FTP Keratong 4 40 Keratong 3 Malaysia FTP Keratong 5 2014 Audited FTP Keratong 6 FP Tembangau 6 F Keratong 10 FP Bera Selatan 7 41 Keratong 09 Malaysia FP Keratong Timur 2014 Audited FP MERCHONG 01 FAS Merchong F Selancar 4 F Selancar 5 F Selancar 3 F Pemanis 2 42 Selancar 2A Malaysia 2015 Audited F Medoi F Pemanis 1 FTP Redong FTP Selancar 1
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
FP Selancar 6 43 Selancar 2B Malaysia FP Selancar 8 2015 Audited FP Selancar 9 FTP Pasoh 1 FTP Pasoh 2 44 Pasoh Malaysia FTP Pasoh 3 2015 Audited FTP Pasoh 4 FP Bera Selatan 3 FP Tembangau 8 FP Serting 5 FP Serting Hilir 8 FP Serting Hilir 9 FP Palong 21 45 Serting Malaysia 2015 Audited F raja alias 1 F raja alias 2 F raja alias 3 F raja alias 4 FAS Serting Hilir FAS Tembangau 9 FP Tembangau 3 FP Tembangau 5 FP Tembangau 6 FP Tembangau 7 FP Tembangau 8 FP Tembangau 9 F Sg Lui F Lui Timur 46 Serting Hilir Malaysia FTP Lui Muda 2015 2015 FTP Tembangau 1 FTP Tembangau 2 F Serting Hilir 2 F Serting Hilir 3 F Serting Hilir 4 F Serting Hilir 5 F Serting Hilir 6 F Serting Hilir 7 F Selancar 2 FP Krau 2 47 Krau Malaysia 2015 Audited FP Krau 4 FTP Kg Sertik FTP Lakum FTP Bukit Damar 48 Mempaga Malaysia 2015 Audited FTP Mempaga 1 FTP Lurah Bilut FTP Mempaga 2 FP Maokil 6 FP Maokil 7 F Maokil 1 49 Maokil Malaysia F Maokil 2 2015 Audited F Maokil 3 F Maokil 4 F Chemplak FP Selendang 3 50 Selendang Malaysia 2015 Audited FP Selendang 4
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
F Selendang 2 FP Berabong ½ FTP Selendang 1 FP Tenggaroh 9 FP Tenggaroh 11 FP Tenggaroh 13 F Tenggaroh 2 F Tenggaroh 4 51 Tenggaroh Malaysia F Tenggaroh 5 2015 Audited F Tenggaroh 7 F Tenggaroh Timur 1 F Tenggaroh Selatan 1 F Tenggaroh 1 FAS T. TIMOR FP Tenggaroh Timur 2 FP Tenggaroh 12 52 T. Timor Malaysia 2015 Audited F Tenggaroh 3 F Tenggaroh 6 FP Setiu 1 F Chalok F Chalok Barat F Tersat 53 Chalok Malaysia 2016 Audited F Tenang Besut F Mengkawang FTP Belara FTP Selasih FTP Jerangau Barat 54 J. Barat Malaysia F Cerul 1 2016 Audited F Cerul 2 FP Rantau Abang 1 FP Chador 1 55 J. Baru Malaysia 2016 Audited FTP Jerangau FTP Bukit Bading FP Semaring FTP Kerteh 1 FTP Kerteh 2 F Kerteh 3 56 Kertih Malaysia 2016 Audited F Kerteh 4 F Kerteh 5 FTP Kerteh 6 FAS Kerteh FP Sahabat 20 FP Sahabat 21 57 F. Harapan Malaysia 2013 Certified on 2013 FP Sahabat 25 FP Sahabat 22 FP Sahabat 23 FP Sahabat 24 FP Sahabat 26 FP Sahabat 31 58 H. Badai Malaysia FP Sahabat 32 2016 Certified on 2014 FP Sahabat 28 FP Sahabat 33 FP Sahabat 34 FAS Tambisan
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
FP Sahabat 27 FP Sahabat 28 Mill closed down. FP Sahabat 33 59 J. Bistari Malaysia 2016 Supply base goes to FP Sahabat 34 Hamparan Badai FP Sahabat 36 FP Sahabat 37 FP Kalabakan Tengah 60 Kalabakan Malaysia FP Kalabakan Utara 2016 Certified on 2014 FP Kalabakan Selatan FP Umas 5 FP Umas 6 61 Umas Malaysia F Umas 1 2016 Certified on 2014 F Umas 2/3 F Umas 4 FP Sampadi 1 FP Sampadi 3 62 Sampadi Malaysia FP Sampadi 4 2017 2017 FP Sampadi 5 FP Sampadi 6 FP Aring 2 FP Aring 3 FP Aring 4 FP Aring 5 63 Aring A Malaysia 2017 2017 FP Aring 6 FP Aring 8 FP Aring 10 F Aring 1 FP Aring 8 64 Aring B Malaysia FP Aring 10 2017 Mill closed down FP Aring 11 FP Ciku 4 FP Ciku 8 FP Ciku 5 F Ciku 6 65 Ciku Malaysia F Ciku 1 2017 2017 F Ciku 2 F Ciku 3 F Perasa F Ciku 7 FP Kechau 2 FP Kechau 3 FP Kechau 7 FP Telang 1 66 Kechau A Malaysia 2017 2015 FP Chegar Perah 2 FP Kechau 11 FAS Telang F Kechau 1 FP Kechau 6 67 Kechau B Malaysia FP Kechau 8 2017 2015 FP Kechau 10 FP Kemahang 4 FTP Kemahang 1 68 Kemahang Malaysia 2017 2017 F Kemahang 3 FTP Kemahang 2
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
FTP Cini 1 69 Cini 2 Malaysia 2017 2017 FTP Cini 2 FP Terapai 1 FTP Cini 3 FTP Cini 4 FTP Chini 5 70 Cini 3 Malaysia 2017 2017 FTP Chini Timur 2 F Chini Timur 3 F Chini Timur 1 FP CINI TIMUR 04 71 Air Tawar Malaysia TBD 2017 2017 Pontian 72 Malaysia TBD 2017 2017 Plantation PT Citra Niaga Recently completed 73 Indonesia TBD TBD Perkasa the NPP in 2013
2.5 Summary of the findings for Partial Certification The audit team assessed compliance with the above requirements during this audit. Failure to address any non- compliance identified may lead to certification suspension. In term of the awareness and system implementation, the staff and stakeholders are generally well understood of the RSPO requirements. The management has allocated sufficient resources to manage the system and sighted the records RSPO competence personals. The conclusion is that the company is in compliance with the rules for partial certification.
2.6 Partial Certification Audit Agenda Date Location Agenda 07/07/2014 Kemasul POM Documentation review
PART 3: AUDIT PROCESS
3.1 About the Certification Body Control Union Certifications is a member of the Control Union World Group – an international inspection and certification body. CUC performs Audits and certification in many agricultural based fields such as FSC, RSPO, and Organic production, Sustainable Textile Production, Organic Exchange, GLOBALGAP, HACCP, BRC, GMP and GTP.
CUC is accredited by the Dutch Council of Accreditation (RVA) on the European quality standard EN 45011 for the inspection and certification of CUC Organic program (according to the EU regulation 2092/91) and EUREPGAP program. When requested a copy of the accreditation certificate can be obtained from CUC.
3.2 Audit Team Lead auditor: Simon Selvaraj Team member 1: Muhd Jamalul Arif Team member 2: Selvanathan Grapragasem Team member 3: Muhammad Syafiq
3.2.1 Qualifications of the Lead Auditor Requirement Qualifications A minimum of post high school (post-secondary Post graduate qualification in agriculture with more than school) training in either agriculture/forestry, 5 years working experience in plantation. environmental science or social sciences; At least 5 years professional experience in area of More than 5 years working experience in plantation. work relevant to the assessment (e.g., palm oil Involved in RSPO auditing since November 2010. Fully
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
management; agriculture/forestry; ecology; social trained in similar agriculture certification programme such science); as RSPO SCCS, Global Gap, ISCC and GMP. Training in the practical application of the RSPO Involved in RSPO assessment since November 2010. criteria, and RSPO certification systems; Member of CUC RSPO audit team. Involved in audits conducted in Malaysia and Indonesia. Successfully completion of an ISO 9000:19011 lead Completed ISO 9001:2008 lead auditor course in July auditors course; 2011. Successfully completed RSPO Lead Auditor Course. Training in the practical application of RSPO Post graduate qualification in agriculture with more than certification systems. 5 years working experience in plantation.
A supervised period of training in practical auditing Post graduate qualification in agriculture with more than against the RSPO criteria or similar sustainability 5 years working experience in plantation. standards, with a minimum of 15 days audit experience and at least 3 audits at different organizations.
RSPO endorsed lead auditors course. Completed RSPO Lead Auditor training in 2011 Signed code of conduct. Signed with CUC General knowledge of: • RSPO P&C standards. Sound knowledge of the P&Cs, Nis and Local Interpretations. • CUC organizational structure. Sound understanding and has prepared training documents for others. • CUC quality systems. Sound understanding and has prepared training documents for others. • Lead auditor role. ISO 9001. Prepared an ISO 19011 training course and conducts internal training on auditing techniques. • Report writing. Extensive experience in report writing. • Stakeholder consultation. The process and need for this is fully understood. • Certification decision process. Full understanding. • RSPO SCCS program manual. Full understanding. • CUC filing systems. Full understanding. • Correct use of RSPO trademarks. Full understanding. • History and objectives of RSPO. Full understanding. • CV available. Upon request. Completion of CUC RSPO lead auditor training. Completed & Passed RSPO Lead Auditor training in 2011
3.2.2 Qualifications of the A ssessment Team RSPO Requirement Team Member Name Qualifications
Fluent in main local Muhd Jamalul Arif Fluent in both English and Bahasa Malaysia languages and English. Selvanathan Grapragasem Fluent in both English and Bahasa Malaysia Muhammad Syafiq Fluent in both English and Bahasa Malaysia
Field working Selvanathan Grapragasem SA 8000 advanced auditor, QMS, EMS & experience in the palm OHSAS Lead Auditor, Working experience in oil oil sector, or a palm plantation. demonstrable Muhammad Syafiq More than 5 years working experience in oil equivalent. palm plantation with different company.
Good agricultural Selvanathan Grapragasem SA 8000 advanced auditor, QMS, EMS & practices (GAP), OHSAS Lead Auditor, Working experience in oil integrated pest palm plantation. RSPOPC-SUM-REPORT.F01 JULY2013 Page 18 of 48 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700
RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
management (IPM), Muhd Jamalul Arif Global GAP and agriculture auditing experience. pesticide and fertilizer RSPO is the prime auditing scope in CUC since use. 2012. Muhammad Syafiq More than 5 years working experience in oil palm plantation with different company. Trained in plantation management includes GAP, OSH, pesticides, fertilizer and etc.
Health and Safety Selvanathan Grapragasem SA 8000 advanced auditor, QMS, EMS & auditing on the farm OHSAS Lead Auditor, Working experience in oil and in processing palm plantation. facilities. (For example Muhd Jamalul Arif Global GAP and agriculture auditing experience. OHSAS 18001 or RSPO is the prime auditing scope in CUC since occupational. Health 2012. and safety assurance Muhammad Syafiq More than 5 years working experience in oil system). palm plantation with different company. Trained in plantation management includes GAP, OSH, pesticides, fertilizer and etc.
Workers welfare issues Selvanathan Grapragasem SA 8000 advanced auditor, QMS, EMS & and social auditing OHSAS Lead Auditor, Working experience in oil experience. (For palm plantation. example with SA8000 or Muhd Jamalul Arif Global GAP and agriculture auditing experience. related social or ethical RSPO is the prime auditing scope in CUC since accountability codes). 2012. Muhammad Syafiq More than 5 years working experience in oil palm plantation with different company. Trained in plantation management includes GAP, OSH, pesticides, fertilizer and etc.
Environmental and Selvanathan Grapragasem SA 8000 advanced auditor, QMS, EMS & ecological auditing. (For OHSAS Lead Auditor, Working experience in oil example experience palm plantation. with organic agriculture, Muhd Jamalul Arif Global GAP and agriculture auditing experience. ISO 14001 or RSPO is the prime auditing scope in CUC since environmental 2012. management systems). Muhammad Syafiq More than 5 years working experience in oil palm plantation with different company. Trained in plantation management includes GAP, OSH, pesticides, fertilizer and etc.
Economic issues. Selvanathan Grapragasem SA 8000 advanced auditor, QMS, EMS & OHSAS Lead Auditor, Working experience in oil palm plantation.
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
3.3 Audit Methodology 3.3.1 General O verview The Audit was carried out in conformity with the procedures as laid down in the CUC Procedure Manual and the RSPO Program Manual for the auditors and Certifier. During the Audit the qualified CUC auditors used the RSPO standard as endorsed for the country in which the audit took place and recorded their findings.
Workers and local communities were interviewed and evidence sought to confirm ongoing compliance to include: • Chemical stores. Storage, MSDS leaflets, Herbicide mixing areas, PPE, Ventilation, Security. • Field inspections. Herbicide application programs. Harvesting sites and efficiency. Fertilizing operations. SOP’s. Soil maps. Land preparation. Ground cover. IPM. First aiders and boxes. Ground cover. Soil erosion. Field observations of all operations. • Worker interviews. OSH. Sexual, religious, racial harassment. Pay and contracts. Child labor. First aid. Awareness. • Re-planting sites. Zero burn. • HCV’s. Identification. Management plans. Environmental Impact Assessments. Implementation. • Riparian zones. Width. Current and future management. Non maintenance regimes. • Water management. Water courses. Water monitoring. • Road maintenance. Run off. • Social amenities. Social Impact Audits. • Local communities. Contributions made. Employment opportunities. Social impacts. Complaints procedures. • Workshops. Oil traps. Safe working environment. PPE. Diesel tanks. Environmental waste management. • Line sites. Interviews with householders. Inspection of water discharge points. Water improvement plans. Waste disposal. • Documentation review.
The Palm Oil Mill audit verification included the following activities: • Mill and workshop inspections. Documentation review & worker interviews. • Mill. SOP’s. Safe working environment. Gen sets. Walk ways. Signs. EFB. POME treatment. Emissions. Mass balance. Diesel tanks. PPE. Fire extinguishers. First aiders and boxes. Fuel and water usage. • OSH. Training. Management structure. First aiders. • Full document review. Completion of the checklist. Review and documentation of evidence. All aspects of RSPO P&C’s applicable. • Worker interviews. OSH. Sexual, religious, racial harassment. Pay and contracts. • Compliance against the RSPO SCCS certification scheme.
Verification: Verification of implementation was done through field observations, workshop and chemical store inspections, worker and community interviews and mill inspections as summarized above.
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
3.3.2 Assessment agenda for this Audit Date Location Auditors Main activities 08.30 Opening meeting Chaired by the audit team leader • Introduction by team leader Kemasul Simon • Presentation by respective managers POM • Presentation of Palm Oil Mill source of FFB by respective Managers • Review the status of previous non -conformities Simon Supply Chain Certification Assessment of the POM (RSPO SCCS)
Mill inspection 07/07/2014 Selva • Workshops [Mon] • Stores • POM application • Document review Kemasul
POM Shafiq Mill operations Jamal • Worker interviews • Housing • Medical • Schools • Local communities • Environmental Field operations. • Worker interviews • Chemical stores Simon • Workshops Mengkarak 1 Selva • Housing Estate Shafiq • Medical Jamal • Schools 08/07/2014 • Local communities [Tue] • Environmental Field operations. • Worker interviews Simon • Chemical stores Selva • Workshops Chemomoi Shafiq • Housing Estate Jamal • Medical • Schools • Local communities • Environmental
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
Auditor’s preparation for closing meeting. Additional field visits and meetings with managers if necessary. Closing meeting to be chaired by the audit team leader • Welcome and introduction by the team leader Kemasul All • Presentation of findings by the audit team POM auditors • Questions and answers • Final summary by team leader
End of assessment
PART 4 ASSESSMENT FINDINGS
4.1 Lead Assessor’s Summary and Recommendation for Certification The mill and supply bases visited (as per the above Tables 1.5 and 1.7.1) were assessed at field, office, facilities, stores and document verification was carried out in accordance to the RSPO principles and criteria. The applicable procedures, forms and records seen with minor changes that due to internal audit as well part of the continuous improvement plan. During the audit process, the auditors had extensive interviews session with Scheme Managers, Mill Manager, settlers and local communities that took place in both formal and informal environments and worker interviews were conducted at the supply base and the mill. The management is highly committed in maintaining the RSPO system by adopting to continuous improvement programs. There was no complaint or feedback received during the audit or during the field assessment. Under partial certification rules, there is a time-bound plan established. For further clarification on Partial Certification, see PART 2 above. The management continually monitoring the established KPI / objectives that significantly rules the achievement of company’s corporate policy on RSPO. The mill is fully verified for RSPO SCCS system verification and it is found to be in full compliance. See PART 5 below. It is therefore the recommendation of the lead assessor that:
• A certificate of compliance is award.
Signed:
Name: Simon Selvaraj Date: 08th July 2014
4.2 Summary of the findings by Principles and Criteria • Over the 5 year period of the life of the certificate, there will be 4 annual surveillance audits • Identified Non-Conformities and noteworthy Positive and Negative Observations. • The RSPO require that this report contain findings by each principle and some example criteria. Please see table below.
Principle 1: Commitment to Transparency Criterion by Requests made by stakeholders were responded to and all these are well Audit Summary documented in both mill and estates. There is a non-conformity issued for unavailability of policy on ethical conduct. ASA2 1.1 The Mill Manager is responsible in ensuring compliance to stakeholders. The company has a system in place and sighted a SOP for Communication, Participation & Consultation [FPI/L2/QOHSE-6.0] available that describes of receiving and responding to stakeholder requests. Sighted a log book being used as a master reference where the date and ref. number will leads to request letter/form. SOP also were mentioned need to provide adequate RSPOPC-SUM-REPORT.F01 JULY2013 Page 22 of 48 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700
RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
information to their stakeholders regarding: • Land titles • Safety & Health plan, EIA, SIA and pollution prevention plan • Details of complaints and grievances • Negotiation procedure • Prices paid for FFB There are policies that are being placed at the notice board in the POM office and mill area. It includes the sexual harassment and violence policy, right to freedom, environmental, child employment, quality, equal employment opportunities etc.
ASA2 1.2 A procedure [Communication, Participation & Consultation [FPI/L2/QOHSE- 6.0] briefing documents and records made publically available. Latest Hazard identification [HIRADC] established on 25/04/2014. OHS related procedures are, [FPI/L2/QOHSE-1.0 HIRADC] [FPI/L2/QOHSE-2.0 Legal and Requirement], [FPI/L2/QOHSE-6.0 Communication, Participation and the Consultation].OHS training plan, committee organization chart and minutes documented. Risk assessment and mitigation measures are tabulated in the HIRADC. Quality occupational health safety and environmental management manual is available with date revised on 15/10/2013. EIA in place which the assessment done in participation of stakeholders. The pollution prevention plan inclusive of effluent, sludge, shell and fibre. Plans are available for land, water and air pollution that linked to the aspect and impact assessment record as well to the list of legal & other requirements. EIA and risk assessment include pollution and occupational hazard prevention plan which is publicly available on request. A procedure available for Complaint & Grievances [FPI/L2/QOHSE-22.0]. The company has a complaint & grievance log in form of CAN [Corrective Action Notice]. Negotiation procedures available [ML-1A/L2-PR (0). There are no indigenous peoples in the area and land use rights are established. 8 OHS related trainings been plan for 2014 and records of evidence sighted. Risk assessment and mitigation measures are tabulated in the HIRADC. EIA and SIA concerning procedure [MR 6.1/2013-KSLU] established. Latest updated of EIA dated on 22/03/2014. Plans are available for land, water and air pollution that linked to the aspect and impact assessment record as well to the list of legal & other requirements. EIA and risk assessment include pollution and occupational hazard prevention plan which is publicly available on request. A procedure available for Complaint & Grievances [FPI/L2/QOHSE-22.0]. This being associated with request and respond process, whereby the “Buku Record Aduan” used to track complaint and grievances. Negotiation procedures available [ML-1A/L2- PR (0). ASA2 1.3 No policy for the company committing to a code of ethical conduct and integrity in all open transactions. Minor NC was raise on this indicator due the policy is under review from the top management of FELDA. Principle 2: Compliance with Applicable Laws and Regulations Criterion by The mill and estate have demonstrated compliance to all applicable local, Audit national and international laws with the exception of the implementation of the USECHH 2000 Regulations and the Scheduled Wastes Regulations 2005. Summary Legal ownership of land and its land use is clearly demonstrated through the respective land titles. Boundaries have been clearly demarcated. There have been no land disputes or claims involving the mill and estate.
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
ASA2 2.1 A documented procedure established for legal and other requirements [FPI/L2/QOHSE-2.0] dated on 29/01/13, rev 0. The Mill Manager is the responsible person to co-ordinate with HQ for any changes in the requirements as well to update the internal members on the revisions. Records of expiry of permits and licenses are kept in the office and monitored by Admin Officer to ensure that they are renewed well before the expiry dates to ensure no lapses in the compliance to Malaysian government laws and regulations. Sighted DOE visit log book, which last visited on May 2014 with necessary records updated. All legal indicators are in accordance to the documented procedure [FPI/L4/QOHSE-2.1, rev 0 dated on 29/01/13].
The applicable law books and references are kept in the mill’s conference room along with the RSPO documentations. There is consistence annual review method observed in the legal and other requirements master list as seen legal requirement’s indicators which expired in year 2014 well updated in the tracking master list. “Legal requirement register” listing all the laws applicable and copies of laws are made known to all concern thru safety meetings. Any changes in the law are advised to the mill manager through memos from HQ. Estate manager is monitoring for renewal license based on the guideline from Headquarters. In any cases of changes in the relevant law, HQ will send circulated memos to estate manager. Procedure established for legal and other requirements sighted at the document FPI/l2/QOHSE-17.0 dated 29/01/2013. The estate manager is the responsible person to co-ordinate with HQ for any changes in the requirements as well to update the internal members on the revisions. The applicable law books and references are kept in the estate`s conference room along with the RSPO documentations. ASA2 2.2 The land titles for both POM and plantation seen clearly documented and made publically available. No restrictions in the terms of the mill and estates land titles noted as being abused. No disputes been recorded so land conflict due it is belonging to the smallholder. The land is leased from the government. ASA2 2.3 No customary right. Sighted a procedure established as for Felda to manage any claim or dispute at any cost of time. Principle 3: Commitment to Long-Term Economic and Financial Viability Criterion by The annual budget and 5 years projections for the mill and estate that details Audit Summary revenue and costs are available. Replanting programme for the estate for the next five years is also available. ASA2 3.1 Capital expenditure programme for replanting available. A matrix replanting programme with development milestone established. The activities effectively documented in the “Felda Techno plant S/B – “Record Kemajuan Kerja Pembangunan Tanam Semula”. Total 5 years [2011-2015] planned expenditure for administration, transportation, road maintenance, fertilizer and others incurred for the maintaining existing tree and replanting program. Replanting calendar sighted for the period from 2019-2023. The oldest palm captured is 1998 planting. The 1st replanting programme will be in year 2018 (PM1998 A - 113.86 Ha). Principle 4: Use of Appropriate Best Practices by Growers and Millers Criterion by The mill and estate have a complete set of SOPs which is being strictly Summary Audit adhered to and continuously monitored. Soil fertility is being maintained in
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the fields and erosion prevention is continuously carried out. IPM is being implemented in all the estate and the use of chemicals are in accordance with the regulations. OSH policy and is being implemented throughout the estate and mill. There is a non-conformity issued for PPE usage. ASA2 4.1 Documented SOP No: FPI/L3/01-01 with its lists of activity which has each individual document no respectively covering all its operation. FELDA Group has prepared 115 SOP’s for all the activities in the mill. Example of SOP’s: i. FPI-PK-004(A) Loading Ramp Operation ii. FPI-PK-012 Cake breaker conveyor operation. iii. FPI-L3-7-04 Press station Operation iv. FPI-L3-10-08 Hot water tank operation v. FPI-L3-12-25 Turbine operation SOP covering what the purpose of SOP, job scope, person in charge, procedure with flow chart and date of revise. SOP will be revised if any changing of mill or estate activities. As for the plantation activities, sighted “Manual Operasi Ladang Sawit Lestari” covering all activities that applicable for estate. The manual divide by 3 section “Plantation Development- Covering 20 operation activities in plantation”. Plantation Development (immature) - Covering 9 operation activities. Group SOP for estate operation dated 01-06-2012 and all operational SOP are kept at manager’s office and needs his approval for withdrawal for any operational purposes. All types of RSPO related records are retained for 7 years. Sighted record of monitoring e.g. fertilizer, road maintenance programme is kept since 2012. ASA2 4.2 Recommendations and monitoring of fertilizer is done by FELDA Agricultural Services (FASSB) every year based on soil and leaf sampling. FASSB will be give recommendations by type of fertilizer, field phase, block, hectare, and palm/ha, manuring method, total fertilizer (kg/palm/year) and fertilizer to be applied (kg/palm) programme divide by 3 rounds (Jan/May/August). Records of fertilizer application matched with the recommendations from FASSB. Sighted the Agronomist Performance Report - Leaf and soil analysis report available for year 2014 - 2015 with ref: FRF20150035. Sighted of daily manuring records individual blocks with man-day, cost involve and number of bags as per recommended by agronomist in the report. Company has applied empty fruit bunch in the field as to replace potassium and also to moisture retention as supplement from inorganic fertilizer. Record of using the EFB application has been sample as follow: application of the EFB for Lot FELDA in April 2014. To date apply is 145 MT. ASA2 4.3 Sighted HCV related trainings includes on how to maintain soil erosion in the estate by planting cover crop, correct spraying area, stacking the frond to avoid bare ground. Record of training is well maintained. Last training on May 2014. SOP for terracing no. MOSL – 12.0 is covering terracing activities and maintaining slopes area. Estate established operational documents as guidelines that based on SOP 12.0 to be implemented in the field. Drainage system also is maintained in that area. Estate practiced to maintain the terrace in over 15 degree slopes and be covered by planting Mucuna Bracteata. Pruned fronds is stacked along inter row to mitigate soil erosion and fertilizer run off. The implementation of SOP is recorded and maps for the high risk area are recognised. Up keeping of existing Mucuna is by not spraying herbicide and sighted records for Jan 2014 – May 2014. Road maintenance programme is done based on survey and input from stakeholders for improvement. Last road
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
maintenance carried out from April 2014. The main activities include grading and compacting. ASA2 4.4 A letter from the HQ dated on 20/08/2010 [01/820205101/10/05/2010] enforcing of no chemical activities carried out by sprayers along riparian zone. Management periodically provide necessary trainings for workers as to enhance their awareness. Estate strictly following to local authority guidelines to maintain the buffer zone. BOD analysis taken for POME final discharge and the mill is monitoring through weekly analysis and summarizes into graph to highlight on the increase and decrease and linear expression shows that it is declining throughout the month. The graph shows at some day there is high BOD reading than the set limit and this is being tackle through action plan which includes target date, costing, actual completion date. Water sampling being carried out weekly by mill laboratory. Report of analysis is available on weekly basis as well. Analysis report issued by accredited laboratory, FELDA Agriculture Services (FASSB) Accredited no. MS ISO/IEC 17025 Testing SAMM no. 247. Government agency (DOE) will cross check the result to monitor the result 3 month once. Record of rainfall is maintained daily and summarized into monthly report for management review. Record of rainfall is effecting the fertilizer recommendations by FASSB. No protected area surrounding the estates. No drainage water into protected area. Water management plan include monitoring of water quality and usage by sampling and water analysis. Estate uses the water source from Jabatan Bekalan Air Pahang. ASA2 4.5 Barn owl is provided and monitored by management. Rats attacking are still less based on census made. Observed a map indicating the barn owl boxes locations. Sighted record for January – April 2014 for barn owl and rat monitoring. Pesticide was recorded included type of chemical, a.i, litre chemical, area applied by daily records. Sighted the monthly pesticide registered record since Jan – June 2014 with input of a.i for Ally 20DF, Basta 15 and etc. ASA2 4.6 SOP for chemical control (FPI-L2-QOHSE-8.0) and SOP for boiler operation (FPI-PK-021). SOPs are in appropriate language (Bahasa). Estate maintains the Standard operation procedure for justification of agrichemicals used. MSDS or CSDS is in place at suitable place the chemical is stored and in appropriate languages. Highly toxic agrochemicals (class 1a) will be replaced by less toxic ones (class II, III & IV) such as Monocrotophos are replaced with Cypermethrine (class III). Rat baits 2 nd generation (a.i Brodafacoum) as alternate for warfarin. Chemicals register is separated by herbicide, pesticide and fertilizer. There are 9 types of fertilizers and 5 types of pesticide recorded in the master list. CHRA was done as planned in Jan 2014. Mill has permit to store the chemicals and waste by DOE of Pahang state. During field visit, observed schedule waste, fertilizer and chemical stores were in good condition, complete with bund, good ventilation, locked, spillage kit, MSDS, labeled and first aid kit. Emergency shower and eye wash also in place in any emergency case. 12 sprayers been sent for medical inspection in Nov 2013 and sighted the report from the panel doctor, observed name list that cross checked with check-roll No women sprayers. No female workers for weeding sighted at field and record checking. There is evidence sighted during field visit, a written memo displayed in variable place to inform the effect of using Paraquat.
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
ASA2 4.7 OSH Plan and policy sighted, dated on July 2010; signed by Dato Dzulkifli; Pengarah Besar FELDA. Sighted Safe Operating Procedures with various dates for all the work station. Awareness is through morning briefing and display of SOP at working area [where appropriate]. Training records sighted for mill and estate staff. Training programme planned till Nov 2014 that includes of all safety aspect of workers. Some of the agenda in the safety meeting are fire drill, first aid, safety in confine space and chemical handling. Sighted estate’s OSH Organization Chart, Headed by Manager. Last meeting on OSH Committee done on March 2014 and Safety Audit was carried out on Dec 2013. First Aid equipment sighted with Mandore in field, Store area & office. First aid kit is available at workplace. Each kit have list of items and last date checking. Verified all kit is up to date. Emergency Procedure well maintained in FPI/L2/QOHSE-14.0. In mill, seen 4 first aid boxes were maintained in mill area. Record of first aid box checking available in monthly basis. During field visit, the audit team found that harvesters were not wearing appropriate PPE as per “Felda Manual Keselamatan” furthermore, no documented records or evidence that appropriate PPE was provided to harvesters. ASA2 4.8 Training plan for year 2014 has been tabulated identifying category of workers, training title, frequencies of training with planning and realisation in mill. Sample document sighted is FPI/L4/QOHSE-5.1. HIRADC being used as guide to plan the annual training program. Sighted the workers who works in high risk area being briefed on OHS on annual interval. Seen in Mengkarak Estate, the name list of workers whom are with various nationalities. The 1st phase training is “Induction training” upon their arrival from their origin country. Sighted training record for “Basic Awareness of OHS” dated on 17/05/14. Principle 5: Environmental Responsibility and Conservation of Natural Resources and Biodiversity Criterion by Environmental Impact Assessment has been carried out by the mill and Audit estate. A comprehensive identification of all waste has been recorded and Summary disposal of scheduled waste has been carried out by an approved and registered collector. Monitoring and analysis of waste is carried out regularly. There are 2 non-conformities issued. ASA2 5.1 In mill sighted the Identification of Environmental Aspect & Impact FPI/L4/QOHSE-1.7 dated on Jan 2012. Format used that inclusive of criterion such as activities, types of operation, input, volume, output, impact and evaluation criteria. The EIA sighted for FFB receiving, transporting FFB, and weighing FFB, push FFB trolley into steriliser and each other activities that described in the process flow. The format clearly indicated of the details on where, what, when, how, why and who. There are 2 Environmental Management programs developed, which for control on BOD and smoke emission level. Among the programs, the concentration more given on legal compliances, such as BOD and stack emission monitoring and domestic waste management. Sighted stake emission report of chimney. Required records demonstrated sufficiently during this audit. Sighted effluent analysis results from June 2013 to Dec 2013 with BOD level below permitted level of 100 Mg/Lt. In estates, the established EIA was not reviewed at planned interval [at least annually] and there are no evidence of the assessment involved with affected stakeholders.
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
ASA2 5.2 In the mill itself no rare, threatened and endangered species are present. The area is covered by the HCV assessment made by the estate as whole. In estate, the SOP-11.0 [High Conservation Value / Conservation Area Management] established. HCV assessments done by the Felda Agriculture Services [FAS], by Yahya Janal in 2011 based on Proforest HCV Tool kit provided. The assessment done with participation and consultation of stakeholders. A survey form, interview session and discussion among involved conducted and evidence sighted. Conclusion of assessment evidenced for no HCV areas found in FELDA Kemasul Complex. Signage for illegal hunting in estate boundaries well maintained. Signs and warnings regarding the presence of protected species were observed at various key areas during the audit. ASA2 5.3 In mill, seen all waste [general, laboratory and engineering] is identified, documented and waste is disposed of in the prescribed way. Waste management programme for 2014 also seen well linked with source of pollution and the mitigation plan. The programme divided into organic waste disposal, electrical & electronics waste, used PPE, wood, glass and plastic. Where else in estate, waste products identified and documented such as used oil, used oil filter, used battery etc. Record of all schedule waste was reviewed appropriately. The schedule waste collection is centralised at Estate storage area. A matrix indicating the entire waste and pollution source is identified and documented. Verified the Jadual 2[notification to DOE], 5[inventory of schedule waste] & 6 [consignment note] with proper records maintained. E-consignment note [Jadual 6] sighted for SW305 and SW 410. Schedule waste inventory [Jadual 5] verified for SW305, SW306, SW409 and SW102. Action plan to reduce waste program for 2014, following document identification of all waste products and operational plan to reduce pollution: spent lubricating oil, empty pesticide and chemical containers, line site wastewater-to construct a sump to reduce pollution impact into waterways. No evidence of burning activities observed as the implementation of Zero Burn policy noticed during field and facility visit. The recycle programme term into 3R where used PPE, waste paper and plastics being incorporated into mitigation plan. The estates collect EFB for fertilizer purposes. Uses of EFB as fertilizer in the fields and scrap metal are sold to iron buyer. Empty fertilizer bags for loose fruits collection. Recycle programme is well implemented. Estate provides the recycle bin in the estate and authorized collector will collect the recycle items. ASA2 5.4 The mill is connected to the Malaysian electricity system as well energy is also generated by the company itself via a boiler and gensets. A complete mapping of baseline value established, where the monitoring focus on fibre (MT), FFB processed, CPO produced and the linkage to fuel consumption. As in estate, the management keep track of the diesel usage for the transportation involve for daily plantation management in a log book. Diesel usage for the transportation involve for daily plantation management in a log book. Monitoring every month and the figures will be compiled at the end of every year. ASA2 5.5 In mill, sighted a memo dated 03/07/13 [01]/4055/RSPO-2013 for the open burning policy enforcement. No open burning evidence observed during site visit to mill. In estate, policy is explained to all the employees at the operating units. Staff and Workers interview reveal that they are aware of the policy. No burning was noticed during assessment. Policy is explained to Staff and
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
Workers during morning briefing. Policy for replanting developed, including fencing, pre felling planning, shredding of palms, lining on steep terrain, land preparation with zero burning. Old palm will be felled and chipped during replanting stage. Emergency response procedure to handle land burning and a mock training conducted with the “Jabatan Pertahanan Awam” which is available. ASA2 5.6 In mill, source of pollution been identified in the EIA which categorized as land, water and air with proper monitoring records available. Source of pollution been identified in the EIA. In estate, Identification of Environmental Aspect & Impact P5/C5.1/5.1.1. Management programmes established as to reduce the pollution level. Sighted monitoring records for stake emission EFB disposal and effluent discharge. Document for EIA & pollution prevention plan, program for 2014 established with description of major activities, hazards, frequency, impact rating, and level of risk, mitigating measures, target dates and person in charge. There is plan to reduce pollution and emissions but not including the greenhouse gas emission. Principle 6: Responsible Consideration of Employees and of Individuals and Communities by Growers and Millers Criterion by The mill and estate have conducted the social impact assessment. The Audit relevant policies are in place and are fully implemented across the board. Communication and consultation as well complaints and grievances Summary procedure are well communicated and adhered to. Sighted complaints and grievance that effectively recorded. There are no evidence of workers been discriminated against in any way and all are being paid their fair wages. There are 4 non-conformities were issued. ASA2 6.1 As for mill, a document for SIA Report is available. Last SIA fully conducted in 2013/2014. For 2014; the survey form has been distributed to employee and settlers. Describes the issue on: • Local amnesties • Support business • Social and Religious • Social amenities As for estates, a survey form that touched on issue such as local amenities, business support and social and religious was distributed to employees and settlers. Analysis of the survey was carried out and plans to mitigate the negative impacts and promote the positive ones are evident. A timetable of possible mitigation measure [negative] available and communicated. Action plan developed for the 2nd generation housing & football field revamp. Action plan indicated that the budget is approved and action in progress [Felda management]. ASA2 6.2 In the mill, list of stakeholder evident that last updated in Feb 2014 consisted of FFB and material Suppliers, Government Offices, Community Representative, etc. The communication and consultation mechanisms designed in collaboration with local communities and other affected or interested parties relevant; related social communication and consultation is carried out. In Mengkarak, records of all communication and actions taken in response to input from stakeholders maintained effectively. Records maintained for meetings with local community representatives and issues raised. The action taken in response to those issues seen effectively recorded. The company has identified and appointed a person who is the main point of contact and who
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
is responsible for communicating with local communities and stakeholders. Stakeholder list was found not complete and increasing of the stakeholder surround was not captured in the list. ASA2 6.3 To comply with SOP “Manual Lestari 1A’’ (ML-1A/L2-PR4 (0) dates on March 2012 each complaint will be taken action within 7 days and issue resolved in 14 days from the complaint date. System was found to be open for any affected parties by implementation of SIA form and stakeholders meeting by the management. The procedure including the flow chart how the disputes is refer to and to give responses in timely manner. The scheme has “Visit Manager” activities. Mill Manager handles grievance. 2 complaints registered for Year 2014. Last issue registered on 23/06/14 on the issue of “short” in weighbridge. However the weight is not above the limit and re-calibrated again on next day. No grievance registered as per this audit period. No grievance registered as per this audit period. ASA2 6.4 No negotiations concerning compensation for loss of legal or customary rights is as per this assessment period. ML-1A/L2-PR12 (0) dated Mac 2012 established for identifying legal and customary rights and identifying people entitled to compensation. History and documents of the development of Complex Kemasul do not show any evidence that there was a loss of legal or customary rights which would have led to a necessary, consequent compensation or that any compensational claims would be open and/or evident. ASA2 6.5 No foreigner in the mill employments. “Syarat-syarat perkhidmatan Felda” handbook sighted for the employment terms and conditions. Workers understood contract, terms & condition evident. Minimum pay of RM 900/= as per the government regulation for monthly paid worker sighted and verified. No daily paid employee. Workers understood contract. All pay is documented under check roll payslips. Workers are given payslip and acknowledge sign by them. Sighted agreement between Felda Palm Industries and Workers Union of Felda Palm Malaysia regarding sickness leave, holiday entitlement, maternity leave, reasons for dismissal, period of notice and maternity leave. Assessment of all the dormitory workers employed by Felda provided with reasonable standard of living / housing, sighted workers dormitory with good condition and well managed. Minimum pay of RM 900/= as per the government regulation for monthly paid worker sighted and verified. No daily paid employee. All workers have valid documentation including work contract mention position, working day, holiday, overtime, medical, period of contract etc. For local workers, work ethics code will give to them before working. Company give variable facilities to workers such as housing, medical, education and welfare amenities. Family member of workers admitted and company cover the cost. ASA2 6.6 The company conducts meeting with labour union once a year. The latest meeting with labour union [internal] on Mar 2014 sighted, 5 committee representatives attended. Discussed, of adding of water tank, road at housing area and street light. Workers right and workers welfare discussed. As for estates, the meeting within the workers and management was done effectively; the workers representative was elected and there is a communication evidence for workers’ rights and workers welfare. Minutes of meeting available and sighted no pending issue. Issues identified such as RSPOPC-SUM-REPORT.F01 JULY2013 Page 30 of 48 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700
RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
requested to help together when information is needed by government. Documented minute of meetings of the JKKK with the management is evident. ASA2 6.7 Children are not employed or exploited. Minimum age indicated at 18 years old in the organization Child policy approved by Mohamed Emir Navami President & CEO of FGV dated 1.6.2014. In the policy, it stated that no workers under 18 will be employed. But sighted employment of Mr. Irfan Mayadi (DOB 31/12/1994) who started working on 17/10/2012 at the age of 17 years 9 months 17 days. ASA2 6.8 A policy of “Equal Opportunities” is established. No new promotion or demotion registered as per this audit period. Wage records show that wages are the same and interviews confirmed that there is no discrimination. Wage records show that wages are the same within all race and interviews confirmed that there is no discrimination on race, national etc. No latest advertisement for work sighted. ASA2 6.9 The company has policy regarding sexual harassment and violence & reproductive rights [ML-1A/L2-PO11(0) dated March 2013. Sighted the Gender Committee Chart and its supply base organization chart. A grievance mechanism evident through women’s association. Meeting of the said committee dated March and April 2014 for monthly meeting and discussed on women activities. ASA2 6.10 Pricing is followed by actual MPOB pricing system. Online system from Felda HQ. A daily review and update does guarantee a clear and transparent procedure, complete records are available. 1% @ MT / for RM 22.50 for internal FFB & 21.10 for external FFB on 15/04/14. Prices are displayed at the mills weighbridge - notice board for public information [FFB]. The contract between Mill and contractor/ supplier evident. As the Felda has no intervention with settlers, no direct contractor taken for any job. Construction contractor dealt by District Office [Wilayah]. ASA2 6.11 Sighted the budget for recreation activities but no CSR activities recorded as per this audit period. ASA2 6.12 Interviewing the workers and stakeholders revealed that there is no forced or labor trafficking involved. Workers enter into employment voluntarily and freely. Employee’s contract reviewed and found there is no contract substitution has occurred. No sub-contract between workers and suppliers Policy and procedures not yet established for migrant workers. ASA2 6.13 Policy of human right is not available at all FELDA facilities yet. Progress to establish the policy is still under top management review. Principle 7: Responsible Development of New Plantings Criterion by There were no new plantings carried out in any of the supply bases. Summary Audit ASA 2 7.1 Neither new planting nor extension of existing one seen during this audit. Replanting program in planned for period of 2018 - 2021. There is a SOP established for new planting. The management claimed there is no oil palm extension in Malaysia. ASA 2 7.2 New planting not applicable however the agronomists have prepared the annual soil & leaf sampling and topographic information for current estates. Topographic information for the existing estate sighted along with latest GPS Survey. ASA 2 7.3 As this is a larger Felda Scheme area in Malaysia, therefore all the estates are eventually neighbors to the others. HCV 2 and 6 areas identified. As there is no new planting applicable, therefore formal HCV assessment not evidence. ASA 2 7.4 Agronomist annual report on "Oil Palm Manuring Recommendations 2014/15
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
sighted with estate's geographical condition. No peat land and due to no hilly and sloping areas, therefore terracing not applicable. The annual agronomist report will be used as guideline for existing estate mature palm management and for replanting. ASA 2 7.5 As there is no new planting applicable, therefore formal HCV, EIA and SIA assessment not evidence. ASA 2 7.6 Neither new planting nor extension of existing one documented and seen during this audit. Replanting program in place for period of 2018 - 2021. As there is no new planting applicable, therefore formal HCV, EIA and SIA assessment not evidence. No negotiations concerning compensation for loss of legal or customary rights are as per this assessment period. Based on the land title, it leases for 99 years, therefore no compensation issues involved. Since the RSPO certification date, there isn't any issues raised by stakeholders during stakeholder meetings. ASA 2 7.7 Felda has a zero burning Policy and SOP-09 that seen effectively documented and communicated among all the interested parties. The upcoming replanting schedule to be in 2018-2021. During field visit not observed any open burning in the operating units. Apart from the policy, Guidelines for the implementation of the ASEAN policy on zero burning used for reference. ASA 2 7.8 Neither new planting nor extension of existing one documented and seen during this audit. Principle 8: Commitment to Continuous Improvement in Key Areas of Activity Criterion by All the operating units are regularly monitoring and review their activities and Audit develop and implement action plans that allow demonstrable continual improvement in key operations such as in minimizing use of certain Summary pesticides, environmental impacts, maximizing recycling and minimizing waste or by-products generation, pollution prevention plans. Social impacts and mechanism to capture the performance and expenditure in social and environmental aspects. ASA2 8.1 Program to reduce chemical usage is sighted. Management plan has been established to reduce chemical used.eg: introduction of Barn owl. Mill have objective to reduce the usage of diesel usage. As for environmental concerns, maximizing recycling and minimize waste, EFB mulching, recycling of empty containers, scrap iron, used type, spent batteries, empty fertilizer bags, plastic bottle and plastic. There are also plan to maximize recycling such as: o Use used paper o EFB used as supplement organic o Shell and mesokarp fiber used as burning material. All these have proposed dateline, cost, actual start and end date, and remarks. In estates, action plans that allow demonstrable continuous improvement is available.
4.3 Non-conformity Raised During this Audit and Any from the Previous Year, if applicable This section gives an over view of new or revised non-conformities raised during this audit and of action taken to close out non-conformities raised during the previous audits, if applicable • If a minor-non-conformity raised at the last audit, is not closed out, then this will be raised to Major status and the company given 60 days to close this out. • The NC number is comprised of 2 parts to include the year in which the NC was raised as well as a sequential number.
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
4.3.1 Non-Conformities Identified during this Audit The following NC’s were raised for this audit. 3 Major – closed 7 Minor – time line until next ASA
NON CONFORMITY REPORT for NC identified during this ASA. NC number: 01/2014 Client name: Kemasul POM Complex Major or Minor: Major Raised by: Simon Aspect of standard: 2.1 There is compliance with all applicable local, national and ratified international laws and regulations. Evidence of non-conformity: Mengkarak 1 Estate diesel skid tank in inappropriate bunding (cracked) against the DOE regulations of guidelines for skid tank [ENVIRONMENTAL QUALITY ACT 1974 [ACT 127]. Auditors signature:
Date: 08th July 2014 Proposed corrective action / improvement action by company. Estate has fixed the diesel tank immediately and root cause is identified as no monitoring system to monitor all estate facilities. Thus, monitoring checklist was established includes person in charge. Timeline for conformance: 60 Days Review of corrective /improvement action: The addressed corrective action is satisfactory and will verify for the effectiveness in ASA 3. Assessors signature:
Date: 05 th Sept 2014
NON CONFORMITY REPORT for NC identified during this ASA. NC number: 02/2014 Client name: Kemasul POM Complex Major or Minor: Major Raised by: Simon Aspect of standard: 5.3.2 All chemicals and their containers shall be disposed of responsibly. Evidence of non-conformity: Found that the collector does not have DOE permit to collect disposal waste. For fertilizer beg they use service from S.Rajasingan a/l Sinnathamby. For Mengkarak 02, Ah Huan was responsible for empty chemical container where Mengkarak 01 have no evidence of empty chemical container disposal. Auditors signature:
Date: 08th July 2014 Proposed corrective action / improvement action by company. Estate has appointed license collector contractor by DOE to collect and handle all schedule waste generated by estate including chemical containers. Appointment letter no. (01) 14/471/1-2-7 between FELDA and Temerloh Jaya Industry Equipment Supply as evidence. Timeline for conformance: 60 Days Review of corrective /improvement action: The addressed corrective action is satisfactory. RSPOPC-SUM-REPORT.F01 JULY2013 Page 33 of 48 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700
RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
Assessors signature:
Date: 05 th Sept 2014 NON CONFORMITY REPORT for NC identified during this ASA. NC number: 03/2014 Client name: Kemasul POM Complex Major or Minor: Major Raised by: Simon Aspect of standard: 6.5.2 - Labour laws, union agreements or direct contracts of employment detailing payments and conditions of employment (e.g. working hours, deductions, overtime, sickness, holiday entitlement, maternity leave, reasons for dismissal, period of notice, etc.) shall be available in the languages understood by the workers or explained carefully to them by a management official. Evidence of non-conformity: No contract between foreign workers and estate management is available at the office. Indonesian workers have contract but it being kept in the HQ. Bangladesh workers have no contracts. Auditors signature:
Date: 08th July 2014 Proposed corrective action / improvement action by company. Estate has kept each of the copy of workers contract where previously kept at the HQ. Also one briefing for all foreign workers have been conducted to explain contain of the contract including term and conditions. Timeline for conformance: 60 Days Review of corrective /improvement action: The corrective action will be check in detail during next assessment. Assessors signature:
Date: 05 th Sept 2014
NON CONFORMITY REPORT for NC identified during this ASA. NC number: 04/2014 Client name: Kemasul POM Complex Major or Minor: Minor Raised by: Simon Aspect of standard: 1.3.1 – There shall be a written policy committing to a code of ethical conduct and integrity in all operations and transactions, which shall be documented and communicated to all levels of the workforce and operations. Evidence of non-conformity: No policy has been established. Minor NC was raise on this indicator due the policy is under review from the top management of FELDA. Auditors signature:
Date: 08th July 2014
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
NON CONFORMITY REPORT for NC identified during this ASA. NC number: 05/2014 Client name: Kemasul POM Complex Major or Minor: Minor Raised by: Simon Aspect of standard: 4.7.3 All workers involved in the operation shall be adequately trained in safe working practices (see Criterion 4.8). Adequate and appropriate protective equipment shall be available to all workers at the place of work to cover all potentially hazardous operations, such as pesticide application, machine operations, and land preparation, harvesting and, if it is used, burning. Evidence of non-conformity: No evidence that appropriate PPE was provided to Harvester. Field visit reveal harvester not wear appropriate PPE as per “Felda Manual Keselamatan” Auditors signature:
Date: 08th July 2014
NON CONFORMITY REPORT for NC identified during this ASA. NC number: 06/2014 Client name: Kemasul POM Complex Major or Minor: Minor Raised by: Simon Aspect of standard: 5.1.1 An environmental impact assessment (EIA) shall be documented. Evidence of non-conformity: No annual basis revision update of EIA done by stakeholder consultation meeting and there are no evidence of the assessment involve with affected stakeholders. Auditors signature:
Date: 08th July 2014
NON CONFORMITY REPORT for NC identified during this ASA. NC number: 07/2014 Client name: Kemasul POM Complex Major or Minor: Minor Raised by: Simon Aspect of standard: 5.6: Plans to reduce pollution and emissions, including greenhouse gases, are developed, implemented and monitored. Evidence of non-conformity: There is plan to reduce pollution and emissions but not including the greenhouse gas emission. Auditors signature:
Date: 08th July 2014
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
NON CONFORMITY REPORT. NC number: 08/2014 Client name: Kemasul POM Complex Major or Minor: Minor Raised by: Simon Aspect of standard: 6.2.3 A list of stakeholders, records of all communication, including confirmation of receipt and that efforts are made to ensure understanding by affected parties, and records of actions taken in response to input from stakeholders, shall be maintained. Evidence of non-conformity: No stakeholder list was maintained at the facility. Auditors signature:
Date: 08th July 2014
NON CONFORMITY REPORT. NC number: 09/2014 Client name: Kemasul POM Complex Major or Minor: Minor Raised by: Simon Aspect of standard: 6.12.3 Where temporary or migrant workers are employed, a special labour policy and procedures shall be established and implemented. For 6.12.3: The special labour policy should include: • Statement of the non-discriminatory practices; • No contract substitution; • Post-arrival orientation programme to focus especially on language, safety, labour laws, cultural practices etc.; • Decent living conditions to be provided. Evidence of non-conformity: Policy and procedures not yet established for migrant workers. Auditors signature:
Date: 10 th July 2014
NON CONFORMITY REPORT. NC number: 10/2014 Client name: Kemasul POM Complex Major or Minor: Minor Raised by: Simon Aspect of standard: 6.13.1 A policy to respect human rights shall be documented and communicated to all levels of the workforce and operations (see Criteria 1.2 and 2.1). Evidence of non-conformity: Policy of human right is not available at all FELDA facilities yet. Major was downgraded into Minor due progress to establish the policy still under top management review. Auditors signature:
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
Date: 08th July 2014
4. 3.2 Non -Conformity Identified during the last ASA , not applicable for MA No NC were raised during last ASA1
4.3.3 Observations Raised During this Audit
OBSERVATION Number: OBS 01/2014 Client name: Kemasul POM Complex Raised by: Simon Aspect of standard: 6.7.1 There shall be documentary evidence that minimum age requirements are met. Evidence of non-conformity: Policy of child employees being endorsed on March 2012. In the policy, it stated that no workers under 18 will be employed. But sighted employment of Mr. Irfan Mayadi (DOB 31/12/1994) who started working on 17/10/2012 at the age of 17 years 9 months 17 days. Auditors signature:
Date: 08th July 2014
5.1 Issues that were raised during the Stakeholder Consultation, if any Stakeholders were either informed by the client or by Control Union via the RSPO website. • For Main Assessments, a 30 day Stakeholder consultation announcement is published on the RSPO website prior to the audit. The same announcement is circulated by the client prior to the audit • For subsequent Annual Assessments, it is based on stakeholders reading the approved public summary reports available on the RSPO website, the client’s procedures in receiving on-going feedback or if feedback was sent directly to Control Union prior to an audit or thorough RSPO complaints procedures.
During each assessment, the audit team will review the company’s implemented procedures in receiving feedback and will execute field visits and interviews. Not limited to the following questions, any feedback received is reviewed and summarized in this summary report for either Part 2 – Partial Certification or Part 4 – Assessment Findings above or noted below, if applicable: 1. Do you have any remarks on the RSPO standard? 2. What is your relation with the applicant? 3. Are there any plantation or mill management practices that affect you? 4. Do you consider any management is in conflict with the RSPO principles and criteria? 5. Do you have any suggestions for management? 6. Are you aware of any HCV in the plantations or in adjacent land? 7. Are you aware of any endangered or rare species? 8. Are there any adverse (or positive) effects on local communities? 9. Additional comments? 11. Do you have any comments about the assessment team and would you like to meet with them? 12. Do you have any comments for the client’s management of any other plantations? Subject raised Company response and Audit team findings proposed action to be taken refer to PART 2 and PART 4 refer to PART 2 and PART 4 refer to PART 2 and PART 4
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
PART 5: RSPO SUPPLY CHAIN CERTIFICATION The palm mill mentioned in the scope of the audit was audited against the requirements of the following: RSPO Supply Chain Certification Systems. November 2011 RSPO Supply Chain Certif ication Standard. November 2011
5.1 POM Included In The Scope Of The Audit Name Mill Location Supply Chain Model Palm Oil Mill Capacity (POM) MT/Hour Address (IP or SG or MB) Kemasul Palm Oil KS Kemasul, 28300 Triang, Pahang. 40 MB Mill Malaysia.
5.2 Confirmation Of The Company’s Summary Of Annual Certified Volume Of RSPO Certified Palm Oil And Palm Kernel Over A Specified Period Product CPO (MT) PK (MT) Specified 12 month period CU Code 39,890 9,972 Forecasted volumes between July 2014 to June 2015. POM 1 See also 1.6 above
5.3 Summary Report Including A Brief Description Of The Scope Of Certification A full RSPO SCCS certification audit was used during this annual assessment and the findings support the certification based on supply chain model listed above.
5.4 Monthly Records of Certified and Uncertified FFB Received Since the Last Audit This is an Annual Surveillance Assessment, the figures used are since the last audit. No MONTH-YEAR Certified Supply Bases Uncertified Supply Bases Total (MT) (MT) (MT), if any 1 July 2013 14, 310.62 10,017.16 24, 327.78 2 August 2013 13, 430.33 10,398.81 23, 829.14 3 Sept 2013 16, 131.92 6,988.86 23, 120.78 4 Oct 2013 10, 831.08 2,175.0 13, 006.08 5 Nov 2013 14,519.57 2,430.37 16, 949.94 6 Dec 2013 12,108.52 2,076.58 14, 185.10 7 Jan 2014 10,934.05 1,824.13 12, 758.18 8 Feb 2014 8, 894.66 1,472.47 10, 367.13 9 March 2014 11,744.30 1,825.30 13, 569.60 10 April 2014 12,775.42 1,963.14 14, 738.56 11 May 2014 13,412.07 1,864.19 15, 276.26 12 June 2014 12,221.89 1,797.58 14, 019.47 TOTAL 87,715.82 44,833.59 132, 549.41
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
5.5 Monthly Records of Certified CPO and PK Produced Since the Last Audit If this is the 1 st Main Assessment, the figures used are from the last 12 months. If this is an Annual Surveillance Assessment, the figures used are since the last audit. No MONTH-YEAR Certified CPO (MT) Certified PK (MT) 1 July 2013 2,917.36 692.65 2 August 2013 2,739.82 593.89 3 Sept 2013 - - 4 Oct 2013 2,165.22 574.20 5 Nov 2013 3,097.56 799.69 6 Dec 2013 2,553.02 664.38 7 Jan 2014 2,295.62 597.19 8 Feb 2014 1,893.32 503.57 9 March 2014 2,404.58 615.17 10 April 2014 2,591.07 705.21 11 May 2014 2,790.60 690.41 12 June 2014 2,566.33 574.03 TOTAL 28,014.5 7,010.39
5.6 Records of Certified CPO & PK Sold under GreenPalm to Buyers since the Last Audit, if Any If this is the 1 st Main Assessment, the figures used are from the last 12 months. If this is an Annual Surveillance Assessment, the figures used are since the last audit. The transactions were sighted form the clients registered GreenPalm Account. Certified CPO Certified PK No Buyers Name GreenPalm Trading No (MT) Sold (MT) Sold 1 No sales under GreenPalm - - -
5.7 Records of Certified CPO & PK Sold under UTZ eTrace to Buyers since the Last Audit, if Any The transactions were sighted form the client’s registered UTZ eTrace Account. Certified CPO Certified PK No Buyers Name UTZ eTrace Trading No (MT) Sold (MT) Sold 1 FELDA IFFCO SENDIRIAN BERHAD TR-ab2e041a-2e25 355.24 - 2 TR-41d224a2-49fc 113.97 - 3 TR-89889578-a187 158.09 -
5.8 Non-Conformities Identified during this Audit Timeline for compliance: 1. All non-conformances observed during an audit shall be classified as ‘major’ since all requirements for Supply Chain certification have to be met before granting certification. 2. For Main Assessments, all non-conformances shall be addressed satisfactorily by the operation before certification may be granted by the certification body. If non-conformances are not addressed within three (3) months of the audit, a full re-audit shall be required. The certification body shall assess the effectiveness of the corrective and/or preventive actions taken before closing out the non- conformances. 3. For Annual Surveillance Assessments, non-conformances raised after the certification are serious (i.e. must be considered as a major) and the integrity of the RSPO Supply Chain Certification is at risk. A maximum of one month is to be given to the certified client to satisfactorily address the non- conformance. The certification body shall assess the effectiveness of the corrective and/or or preventive actions taken. Should the nonconformance not be addressed within the one-month maximum timeframe, a suspension or withdrawal of the certificate and a full re-audit may be necessary. 4. If no non-conformances are observed at an audit or when the corrective action plan has satisfactorily addressed raised non-conformance(s), the client shall be recommended for (re-) certification.
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
5.9 Final Certification decision by Control Union for the RSPO SCCS Audit of the POM Recommendations made: Yes Summary of non- None raised. compliances: Certification status of client: The POM included in the scope of this audit demonstrated full compliance with the RSPO SCCS.
With effect from the certification date given in the RSPOPC certificate, this POM mentioned in the scope of this report is considered to be certified in accordance with the RSPO SCCS.
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
PART 6: CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY
6.1 Date o f next ASA The provisional date for the next ASA is: April 2015
6.2 Date for Closure of Non-Conformities See sections above for details of NC’s, if any • All major NCs to be closed by: 09/09/2014 • All minor NCs to be closed by: Before next re-certification assessment
6.3 Signing by the Client I the undersigned, being the most senior relevant management representative of the operation seeking or holding certification, agree with the contents and audit findings as presented in this document .
I also confirm: • Acceptance of liability in execution of the instructions given. • That this company was made aware that the findings of the audit team are tentative; pending review and decision making by the duly designated representatives of Control Union Certifications. • That during the closing meeting all agenda items was covered by the Lead Auditor.
Acknowledged by: Name: Norazam Abdul Hameed Position: General Manager
Date: 15 th Sept 2014 Signature
6.4 Signing by the Lead Auditor I the undersigned, being the Lead Auditor, confirm that this report is an accurate record of the findings and of the closing meeting. I further confirm that the summary of the findings as presented in this report are a true representation of the actual findings of the audit team.
Acknowledged by: Name: Simon Selvaraj Subramaniam Position: Lead Auditor Date: 08 th Sept 2014 Signature
6.5 Signing by the Certifier I the undersigned, being the Certifier, confirm that the information and conclusions included in this report have been prepared in good faith and that the certification decision has been based upon this information.
Acknowledged by: Name: Gerben Stegeman Position: Certifier
Date: 10/02/2015 Signature
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
PART 7: APPENDICIES
Appendix 1: Location Map for this Certification Unit From 1.9, the location map(s)
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
RSPOPC-SUM-REPORT.F01 JULY2013 Page 43 of 48 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700
RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
RSPOPC-SUM-REPORT.F01 JULY2013 Page 46 of 48 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700
RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818737
Appendix 2: List of Abbreviations BRC British Retail Consortium CHRA Chemical Health Risk Assessment CoC Chain of Custody CPO Crude Palm Oil CSR Corporate Social Responsibility CU Control Union CUC Control Union Certifications DOE Department of Environment EFB Empty Fruit Bunch EIA Environment Impact Assessment ERT Endangered Rare or Threatened species EU European Union FFB Fresh Fruit Bunch FSC Forest Stewardship Council FSC COC Forest Stewardship Council Chain of Custody FSC FM Forest Stewardship Council Forest Management GGL Green Gold Label GMP Good Manufacturing Practice GOTS Global Organic Textile Standard GTP Good Trading Practice GPS Global Positioning System HACCP Hazard Analysis and Critical Control Point HCV High Conservation Value HCVF High Conservation Value Forest IPM Integrated Pest Management JAS Japanese Agricultural Standard MDC MDC Publishers Sdn Bhd ( Company Name) MSDS Material Safety Data Sheet NC Non Conformity OE Organic Exchange OSH Occupational Safety and Health OSHAS Occupational Safety and Health Assessment Scheme P&C Principle and Criteria PEFC Programme for the Endorsement of Forest Certification PK Palm Kernel POME Palm Oil Mill Effluent PPE Personal Protective Equipment RSPO Roundtable on Sustainable Palm Oil RSPO NI Roundtable on Sustainable Palm Oil National Interpretation SA8000 Social Accountability 8000 Sdn Bhd Sendirian Berhad SIA Social Impact Assessment SOCSO Social Security Organisation SOP Standard Operating Procedure USDA/NOP United States Department of Agriculture – National Organic Program MT Metric Tonnes WHO World Health Organization
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