PT. MUTUAGUNG LESTARI ASSESSMENT REPORT

Roundtable on Sustainable Palm Oil Certification R S P O

[ ]Stage-1 [√] Stage-2 [ ] Surveillance [ ] Re-Certification

Name of Management : Krau Palm Oil Mill, Felda Global Ventures (M) sdn Bhd Organisation subsidiary of FELDA Plantation Name : FGVP Krau 02 Estate, FGVP Krau 04 Estate, FELDA Krau 01 Estate, FELDA Lembah Klau Estate and FELDA Estates Location : Raub, ,

Certificate Code : MUTU-RSPO/069 Date of Certificate Issue : 19 August 2015 Date of License Issue : 19 August 2015 Date of Certificate Expiry : 18 August 2020 Date of License Expiry : 18 August 2016

Assessment PT. Mutuagung Lestari Reviewed Approved Assessment Date Auditor by by Taufik Margani, ST-1 8 August 2014 Octo HPN Nainggolan Ganapathy Mohan Thavarajah (Lead Auditor), Tony Arifiarachman 2 -5 September Ramasamy ST-2 Y Wisnu Rahmanto, 2014 Oktovianus Rusmin, Ravi Menon

Assessment Approved by MUTUAGUNG LESTARI on:

ST-2 19 August 2015

PT Mutuagung Lestari • Raya Bogor Km 33,5 Number 19 • Cimanggis • Depok 16953 • Telephone (+62) (21) 8740202 • Fax (+62) (21) 87740745/6 • Email: [email protected] • www.mutucertification.com MUTU Certification Accredited by Accreditation Services International on March 12th, 2014 with registration number RSPO-ACC-007

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TABLE OF CONTENT FIGURE Figure 1. Location Map of KRAU Complex, FELDA 1 Figure 2. Operational Map of KRAU Complex, FELDA 2 Figure 3. Operational Map of KRAU PALM OIL MILL and FGVP KRAU 02 3 Figure 4. Operational Map of FGVP KRAU 04 4 Figure 5. Operational Map of FELDA KRAU 1 5 Figure 6. Operational Map of Felda Lembah Klau 6 Figure 7. Operational Map of Felda LURAH BILUT 7

Abbreviations Used 8

1.0 SCOPE of the CERTIFICATION ASSESSMENT 1.1 Assessment Standard Used 9 1.2 Organisation Information 9 1.3 Type of Assessment 9 1.4 Location of Mill and Plantations 10 1.5 Description of Area Statement 10 1.6 Planting Year and Cycles 10 1.7 Description of Mill and Supply Base 11 1.8 Estimate Tonnage of Certified Product 11 1.9 Other Certifications 12 1.10 Time-Bound Plan 13

2.0 ASSESSMENT PROCESS 2.1 Assessment Team 16 2.2 Assessment Methodology, Assessment Process and Locations of Assessment 16 2.3 Stakeholder Consultation and List of Stakeholders Contacted 18 2.4 Date of Next Surveillance Visit 18

3.0 ASSESSMENT FINDINGS 3.1 Summary of Assessment Report of the RSPO Certification 19 3.2 Summary of Assessment Report of Supply Chain Requirement 35 3.3 Conformity Checklist of Certificate and Logo Use 40 3.4 Summary of RSPO Partial Certification 41 3.5 Identification of Findings, Corrective Actions, Observations, Opportunity for Improvement and 43 Noteworthy Positive Components 3.6 Summary of Arising Issues from Public, Management and Auditor Responses 55 3.6 Summary of Arising Issues from Public, Management and Auditor Responses 56

4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY 4.1 Formal Signing of Assessment Findings 57

APPENDICES 1. List of Stakeholders Contacted in the RSPO Certification Process 58 2. Assessment Program 61

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Figure 1. Location Map of KRAU Complex, FELDA

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Figure 2. Operational Map of Krau Complex

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Figure 3. Location Map of KRAU PALM OIL MILL and FGVP KRAU 02

Location of Krau Palm Oil Mill

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Figure 4. Location Map of FGVP KRAU 04

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Figure 5. Location Map of FELDA KRAU 1

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Figure 6. Operational Map of Felda Lembah Klau

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Figure 7. Location Map of Felda LURAH BILUT

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Abbreviations Used

ASA : Annual Surveillance Assessment BOD : Biological oxygen demand BTS : Buah Tandan Sawit CHE : Cholinesterase CPK : Certified Palm Kernel CPO : Crude palm oil CSPO : Certified Sustainable Palm Oil CSR : Corporate Social Responsibility DOSH : Department of Occupational Safety and Health E : Emergency EIA : Environmental Impact Assessment EFB : Empty Fruit Bunch EHS : Environmnet Health and Safety FASSB : Felda Agricultural Services Sdn Bhd FELDA : Federal Land Development Authority FFA : Free Fatty Acid FFB : Fresh Fruit Bunch FGVP : Felda Global Ventures Plantation FPISB : Felda Palm Industry Sdn Bhd FPIC : Free Prior and Inform Concern FR : Frequency Rate FTP : Felda Techno Plant HCV : High Conservation Value IPM : Integrated Pest Management KCP : Kernel Crushing Plant LA : Land Application LC : Land Clearing LCC : Legume Cover Crop LSU : Leaf Sampling Unit ML : Manual Lestari (Sustainable Manual) MPOB : Malaysian Palm Oil Board MSDS : Material Safety Data Sheet OER : Oil Extraction Rate OHS : Occupational Health and Safety PMU : Plantation Management Unit POM : Palm Oil Mill POME : Palm Oil Mill Effluent PPE : Personal Protective Equipment QOSHE : Quality Occupational Safety Health and Environment RSPO : Roundtable on Sustainable Palm Oil SCCS : Supply Chain Certification Standard SIA : Social Impact Assessment SOP : Standar Operations Procedure SR : Severity Rate ST-1 : Stage-1 Assessment ST-2 : Stage-2 Assessment (Initial Assessment)

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1.0 SCOPE OF THE CERTIFICATION ASSESSMENT

1.1 Assessment Standard Used • Malaysia National Interpretation - RSPO - NIWG RSPO Principles and Criteria (P&C) for Sustainable Palm Oil Production (Including smallholder NI. Approved by the RSPO Executive Board November 2010. the baseline NI indicators and guidance are as in the approved NI dated 26 April 2008) • RSPO Supply Chain Certification Standard November 2011 for CPO Mill.

1.2 Organization Information 1.2.1 Organisation name listed in the certificate Felda Global Ventures – FELDA 1.2.2 Contact person Mr. Norazam Abdul Hameed 1.2.3 Organisation address and site address PSQM, Felda Global Ventures Plantations (M) Sdn Bhd Level 20, Balai Felda, Jalan Gurney Satu, , Malaysia 54000 1.2.4 Telephone (+603) 2600 5349 1.2.5 Fax (+603) 2698 7816 1.2.6 E-mail [email protected]

1.2.7 Web page address www.felda.net.my 1.2.8 Management Representative who completed the application for certification Mr. Anthonius Sani 1.2.9 Registered as RSPO member 1-0013-04-000-00, 17 October 2004

1.3 Type of Assessment 1.3.1 Scope of Assessment and Number of Management Unit 1 (one) Palm Oil Mill and 4 (four) Oil Palm Estates: Krau Palm Oil Mill supplied by FGVP Krau 02, FGVP 04, FELDA Krau 1, FELDA Lembah Klau, FELDA Lurat Bilut Estates 1.3.2 Type of certificate Single

1.4 Locations of Mill, Plantations and Area Statement 1.4.1 Location of Mill Coordinate Name of Mill Location Latitude Longitude Peti Surat No. 17, 28700 , N E Krau Palm Oil Mill Pahang 3 º 38’ 50” 101º 58’ 35”

1.4.2 Location of Supply Base Coordinate Name of Supply Base Location Latitude Latitude Ladang Felda Krau 02, 28800,Lurah FGVP Krau 02 N 03˚ 36’ 44” E 101° 57’ 20” Bilut, Bentong, Pahang Ladang Felda Krau 04, Peti Surat No 25, FGVP Krau 04 N 03˚ 36’ 40” E 101° 57’ 20” 28707 Bentong, Pahang Pejabat FELDA Krau Satu, 27600, Raub FELDA Krau 1 N 03˚ 45’ 12’’ E 101° 54’ 28’’ Pahang Pejabat Felda Lembah Klau,27630 FELDA Lembah Klau N 03˚ 41’ 13” E 102° 00’ 15” Raub, Pahang

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Pejabat Felda Lurah Bilut, 28800 FELDA Lurah Bilut N 03˚ 39’ 25” E 101° 53’ 42” Bentong, Pahang

1.5 Description of Area Statement 1.5.1 Tenure  State 6,579.86 Ha  Community 5,915.40 Ha

1.5.2 Area Statement  Total area 12,495.26 Ha  Mature area 7,261.00 Ha  Immature area 2,890.33 Ha  Land Clearing / Replanting 677.75 Ha  Mill 7.13 Ha  Emplashment/Housing Complex 75.00 Ha  Infrastructure 575.17 Ha  Nursery 90 Ha  Occupation - Ha  Conservation Area (Buffer zone) 569.75 Ha  Low land (Swamp) 277.63 Ha  Commentary (Wakaf) 5.9 Ha  Main road 52.5 Ha  Bushes 4.2 Ha  Air Strip 5.1 Ha  Reservoir 3.8 Ha  HCV - Ha

1.6 Planting Year and Cycles 1.6.1 Age profile of planting year Hectarage Planting Year FGVP Krau FGVP Krau FELDA FELDA FELDA Total 02 04 Krau1 Lembah Lurah Bilut (Ha) Klau 1984 760.66 760.66 1985 713.23 713.23 1990 876.01 876.01 1992 432.80 432.8 1997 323.98 469.02 793 1999 78.11 78.11 2000 1014.73 1,014.73 2001 970.9 970.9 2006 1,031.96 100.16 1,132.12 2007 256.48 256.48 2010 232.96 232.96 2012 194.41 194.41 2013 634.51 1,793.64 2,428.15 2014 267.77 267.77

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TOTAL 2,827.60 2,323.54 1,031.96 1,203.69 2,764.54 10,151.33

1.6.2 New Planting area after January 2010 0 Ha 1.6.3 Planting Cycle 2nd Cycle Years

1.7 Description of Supply Base 1.7.1 Description of Mill FFB CPO Palm Kernel Capacity Name of Mill Processed (tonnes/ hour) Out put Extraction Out put Extraction (tonnes/year) (tonnes) (%) (tonnes) (%) Kilang Sawit Krau 40 204,020 42,557.39 20.86 11,076.12 5.43 *Source Production Data on September 2013 to August 2014 1.7.2 Description of Certification Scope of Supply Base Total Area Planted Area FFB Yield Supplied to Mill Name of Estates (Ha) (Ha) (tonnes/year) (tonnes/ha/yr) FFB (tonnes/year) FGVP Krau 02 3,874.00 2,827.60 41,758.08 14.77 41,758.08 FGVP Krau 04 2,705.86 2,323.54 49,336.00 21.23 49,336 FELDA Krau 1 1,031.96 1,031.96 12,716.99 12.32 12,716.99 (179 Smallholders) FELDA Lembah Klau 2,118.90 1,203.69 8,869.80 7.37 8,869.80 (474 Smallholders) FELDA Lurah Bilut 2,764.54 2,764.54 Replanting ( 616 Smallholders) TOTAL 12,495.26 10,151.33 112,680.87 11.10 112,680.87 *Source Production Data on September 2013 to August 2014 1.7.3 other source (non certified) Supplied to Mill Name of sources Members Location FFB % (tonnes/year) Lim Chee Fun - Kg. , Raub, Pahang 3,273.11 1.60 Kop. Lembah Klau - Felda Lembah Klau 4,193.65 2.06 ONL Technique Sdn. B-37-2, Jalan Danau Lumayan, Off Jalan Tasik - 453.91 0.22 Bhd Permaisuri 1, 56000 Kuala Lumpur Sern Lee Enterprise No. 56 Jalan Besar, 28300 Triang, Pahang - 711.11 0.35 Sdn. Bhd Risda Plantation Sdn. No. 37 Peringkat 1, Jalan Tan Tiong, 26700 Raub, - 2,066.29 1.01 Bhd Pahang Ahmad Dahari bin Dong Daerah Raub, Pahang - 4.30 0.002 Kamarudzaman SN Enterprise No. 28 Taman Kolej, Jalan Kuala Lumpur, 28700 - 7.64 0.004 bentong, Pahang Mohd Raffi b. Mat Arif - No. 5, Kampung Lebu, Bentong, Pahang 368.66 0.18 TOTAL 11,078.67 5.426 *Source Production Data on September 2013 to August 2014 1.7.4 Product categories FFB, CPO, PK

1.8 Estimate Tonnage of Certified Product 1.8.1 Past Annual Claim Certified Product Certificate Claim Actual certified product

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(tonnes/year) (tonnes/year)  FFB Production N/A N/A  CPO Production N/A N/A  Palm Kernel (PK) Production N/A N/A *Will be verified during annual Surveillance 1 1.8.2 Estimate Claim Certified of FFB

Total Area Planted Area FFB Yield Name of Estates (Ha) (Ha) (tonnes/year) (tonnes/ha/year)

FGVP Krau 02 3,874.00 2,827.60 45,524 16.1 FGVP Krau 04 2,705.86 2,323.54 51,583 22.2 FELDA Krau 1 1,031.96 1,031.96 13,828 13.4 (179 Smallholders) FELDA Lembah Klau 2,118.90 1,203.69 9,991 8.3 (474 Smallholders) FELDA Lurah Bilut 2,764.54 2,764.54 13,823 5.0 ( 616 Smallholders) TOTAL 12,495.26 10,151.33 134,749 13.27

1.8.3 Estimate Claim Certified of Palm Product FFB Capacity CPO Palm Kernel Name of Mill Processed (tonnes/ hour) Out put Extraction Out put Extraction (tonnes/year) (tonnes) (%) (tonnes) (%) Kilang Sawit 40 134,749 28,297 21.0 7,411 5.5 Krau

1.9 Other Certifications ISO 9001:2008/ISO 14001: 2004 ISO 9001:2008 - (27 July 2012 – 28 July 2015/ AR 4077) ISO 14001: 2004 - (27 July 2012 – 28 July 2015/ ER 0334) OHSAS 18001:2007 (27 July 2012 – 28 July 2015/ SR 0211) HACCP - Others Good code of good agriculture practice for all palm estates and smallholdings by Malaysian Palm Oil Board (MPOB)

1.10 Time Bound Plan 1.10.1 Time Bound Plan for Other Management Units Time Bound Status Hectarage Plan (Actual/Target No Management Unit Address (Ha) * (Planned Certification Audit Year) Year) Kilang Sawit 6, W/Pos Felda 1 Kota Gelanggi 6 10,334 Q4, 2009 Certified: 2010 Kota Gelanggi.27000 , Pahang Kilang Sawit Lepar Utara 6, Peti Surat 12 & 2 Lepar Utara 6 11,538 Q4, 2009 Certified: 2010 2020 26400 Bandar Pusat Jengka Pahang Kilang Sawit Felda Jengka 21, Bandar Pusat 3 Jengka 21 14,319 Q3, 2011 Certified: 2013 Jengka, 26400 Pahang Kilang Sawit Jengka 3, 26400 Bandar Jengka. 4 Jengka 3 13,720 Q1, 2011 Certified: 2012 Pahang

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Kiilang Sawit Jengka 8, 26400, Bandar Tun 5 Jengka 8 13,895 Q1, 2011 Certified: 2012 Abdul Razak Jengka, Pahang Kilang Sawit Lepar Utara 04, Peti surat 55, 6 Lepar Utara 4 Pejabat Pos Bandar Pusat Jengka, 26400 9,415 Q3, 2011 Certified: 2012 Bandar Pusat Jengka, Pahang Pejabat Felda Jengka 18 (Seroja) palm Oil Mill, 7 Jengka 18 12,296 Q3, 2011 Certified: 2013 26400 Bandar Pusat Jengka, Jengka, Pahang Kilang Sawit Padang Piol, 27040 Jerantut, 8 Padang Piol 4,960 Q1, 2011 Certified: 2012 Pahang Kilang Sawit Adela, Po Box 73, Bandar 9 Adela 12,930.04 Q1, 2011 Certified: 2012 Penawar, 81930 Kilang Sawit Lok Heng, PO Box 55, 81907 Kota 10 Lok Heng 12,799 Q1, 2011 Certified: 2012 Tinggi, Johor Kilang Sawit Semenchu, Peti Surat 63, 81907 11 Semenchu 15,797 Q2, 2011 Certified: 2012 Kota Tinggi, Johor Kilang Sawit Waha, Karung Kunci S24, 81907 12 Wa Ha 9,597 Q1, 2013 Certified: 2012 Kota Tinggi, Johor Kilang Sawit Bukit Kepayang, 28300 Triang, 13 Bukit Kepayang 10,164.44 Q4, 2011 Certified: 2013 Pahang 14 Bukit Mendi Kilang Sawit Bukit Mendi, 28320 Triang, Pahang 7,838 Q4, 2011 Certified: 2012 15 Kemasul Kilang Sawit Kemasul, 28300 Triang, Pahang 10,150 Q4, 2011 Certified: 2012 16 Tementi Kilang Sawit Tementi, 38300 Triang, Pahang 11,696 Q4, 2011 Certified: 2013 17 Triang Kilang Sawit Triang, 28300 Triang, Pahang 10,142 Q4, 2011 Certified: 2012 Felda Region Complex, KM 5, Jalan 18 Segamat (GC) 11,192 Q1, 2011 Certified: 2012 Genuang, 89000 Segamat, Johor Kilang Sawit Belitong, Peti Surat 61, 86007 19 Belitong 7,110 Q4, 2012 Certified: 2014 Kluang, Johor Kilang Sawit Bukit Besar, W/P Bukit Besar, 20 Bukit Besar 4,716 Q4, 2012 Certified: 2014 81450 Kulai, Johor Kilang Sawit Kahang, Karung Berkunci No. 533, 21 Kahang 5,134 Q4, 2012 Certified: 2014 86007 Kluang, Johor Kilang Sawit Kulai, Felda Taib Andak, 81000, 22 Kulai 7,531 Q4, 2012 Certified: 2014 Kulai, Johor Kilang Sawit Nitar, Felda Nitar 2, 86700 23 Nitar 5,819 Q4, 2012 Certified: 2014 Kahang, Johor Felda Penggeli Palm Oil Mill, Peti Surat 28, 24 Penggeli 9,456 Q4, 2012 Certified: 2014 81440 Bandar Tenggara, Johor Pejabat Felda Lepar Hilir palm Oil Mill, 25 Lepar Hilir 14,575 Q4, 2012 Certified: 2014 Gambang, Pahang Kilang Kelapa Sawit Bukit Sagu, Peti surat 331, 26 Bukit Sagu 11,684 Q4, 2012 Certified: 2014 26130 , Pahang Kilang Sawit Felda Baiduri Ayu, Peti Surat 29, 27 Baiduri Ayu 7,450 Q4, 2013 Certified: 2014 Pos Cenderawasih, 91150 Lahad Datu, Kilang Sawit Felda Fajar Harapan, Peti Surat 28 Fajar Harapan 27, Pos Cenderawasih, 91150 Lahad Datu, 13,668 Q4, 2013 Certified: 2014 Sabah Kilang Sawit Kembara Sakti, Peti Surat 24, 29 Kembara Sakti 10,208 Q3, 2014 Certified: 2014 91150, Cenderawasih, Lahad Datu, Sabah Kilang Sawit Mercu Puspita, Peti Surat 29, 30 Mercu Puspita 12,734 Q3, 2014 Certified: 2014 91150, Cenderawasih, Lahad Datu, Sabah Kilang Sawit Nilam Permata, Peti Surat 23, 31 Nilam Permata 8,359 Q3, 2014 Certified: 2014 91150, Cenderawasih, Lahad Datu, Sabah 32 Hamparan Badai Kilang Sawit Hamparan Badai, Peti Surat 25, 17,212 Q3, 2014 Certified: 2014

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91150, Cenderawasih, Lahad Datu, Sabah Embara Budi Peti Surat No. 28, 91105 Lahad 33 Embara Budi 15,070 Q2, 2014 Certified: 2014 Datu, Sabah Lancang Kemudi, Felda Sahabat 45, Lahad 34 Lancang Kemudi 10,698 Q2, 2014 Certified: 2014 Datu, Sabah Kilang Sawit Kalabakan, Peti Surat No. 62007, 35 Kalabakan 7,352 Q2, 2014 Certified: 2014 91030 , Sabah Kilang Sawit Umas, WDT 43,91009, Tawau, 36 Umas 8,356 Q2, 2014 Certified: 2014 Sabah 37 Besout Kilang Sawit Besout, 35600 Sungkai, 12,201.80 Q3, 2014 Certified: 2014 Kilang Sawit Trolak, Pejabat POS Sungkai, 38 Trolak 6,899 Q3, 2014 Certified: 2014 35600 Sungkai, Perak Kilang Sawit Krau, Peti Surat 17, 28700 RSPO 39 Krau 14,619 Q3, 2014 Bentong, Pahang approval: 2014 Kilang Sawit Pancing, Peti Surat 257, 25730 40 Pancing 3,850 Q3, 2014 Certified: 2014 Kuantan, Pahang Kilang Sawit Neram, Pejabat Pos Mini Felda RSPO 41 Neram 15,262 Q3, 2014 Neram 1, 26160 Kuantan, Pahang approval: 2014 42 Mempaga Kilang Sawit Mempaga, 28600 Karak, Pahang 7,648 Q3, 2014 Certified: 2014 RSPO 43 Chalok Kilang Sawit Chalok, 21450 Setiu 8,730.67 Q4, 2014 approval: 2014 Kilang Sawit Sg. Tengi, Felda Gedangsa, 44010 44 Sg Tengi 7,320 Q3, 2014 Certified: 2014 Kuala Kubu Bahru, Kilang Sawit Serting, Bandar Baru Serting, RSPO 45 Serting 17,947.93 Q3, 2014 72109 Jempol, approval: 2014 Kilang Sawit Keratong 02, Peti Surat 28, 26900 46 Keratong 2 15,276 Q3, 2014 Certified: 2014 Bandar Tun Razak, Pahang Kilang Sawit Keratong 03, Peti Surat 21, 26900 47 Keratong 03 12,036.48 Q3, 2014 Certified: 2015 Bandar Tun Razak, Pahang Kilang Sawit Pasoh, 72300 Simpang Pertang, 48 Pasoh 8,197.34 Q3, 2014 Certified: 2015 Negeri Sembilan Kilang Sawit , Beg berkunci No. 3, 23309 RSPO 49 Kerteh 13,170.13 Q4, 2014 Ketengah Jaya, Terengganu approval: 2014 Kilang Sawit Selendang, Pejabat Pos Kuala RSPO 50 Selendang 13,944.20 Q3, 2014 Rompin, 26800 Rompin, Pahang approval: 2014 Kilang Sawit Selancar 2A, Peti Surat 98, 85007 RSPO 51 Selancar 2A 8,399.40 Q4, 2014 Segamat, Johor approval: 2014 Kilang Sawit Selancar 2B, Peti Surat 98, 85007 52 Selancar 2B 7,555 Q3, 2014 Certified: 2015 Segamat, Johor Kilang Sawit Jerangau Barat, Wakil POS Felda 53 Jerangau Barat 1,556 Q4, 2014 Certified: 2014 Jerangau, 21820 Ajil Terengganu, Terengganu Kilang Sawit Jerangau Baru, Wakil POS Felda 54 Jerangau Baru 10,805 Q4, 2014 Certified: 2014 Jerangau, 21820 Ajil Terengganu, Terengganu Kilang Sawit Palong Timur, Peti Surat 2, 73400 55 Palong Timur 26,331 2014/2015 Audited: 2015 , Negeri Sembilan Kilang Sawit Serting Hilir, 72120 Bandar Baru 56 Serting Hilir 24,689 2014/2015 Audited: 2015 Serting, Negeri Sembilan Kilang Sawit Maokil, Jalan Kilang, Rancangan Audited: 2015 57 Maokil 8,777 2014/2015 Felda Maokil, 85300 Labis, Johor Kilang Sawit Tenggaroh, 86810 Jemalung, Audited: 2015 58 Tenggaroh 16,812 2014/2015 Johor Kilang Sawit Tenggaroh Timur, Karung Berkunci Audited: 2015 59 Tenggaroh Timur 4,420 2014/2015 No. 534, 81907 Kota Tinggi, Johor

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Kilang Sawit Keratong 09, Peti Surat 32, 26900 Audited: 2015 60 Keratong 09 7,810 2014/2015 Bandar Tun Razak, Pahang Kilang Sawit Kechau A, Peti Surat 16, 27207 Audited: 2015 61 Kechau A 15,963 2014/2015 , Pahang Kilang Sawit Kechau B, Peti Surat 57, 27200 Audited: 2015 62 Kechau B 8,712 2014/2015 Kuala Lipis, Pahang Kilang Sawit Ciku, Peti Surat 29, 18300 Gua Audited: 2015 63 Ciku 10,796 2015/2016 Musang, Kilang Sawit Aring B, Peti Surat 46, 18300 Gua Audited: 2015 64 Aring B 6,920 2015/2016 Musang, Kelantan Kilang Sawit Kemahang, Peti Surat 35, 17507 65 Kemahang 7,775 2015/2016 Certified: 2015 Tanah Merah, Kelantan 66 Tersang Kilang Sawit Tersang, 27600 Raub, Pahang 10,044 2015/2016 Audited: 2015 67 Cini 2 Kilang Sawit Chini 2, 26690 Chini, Pahang 9,422 2015/2016 Audited: 2015 68 Cini 3 Kilang Sawit Chini 3, 26690 Chini, Pahang 7,730 2015/2016 Audited: 2015 Kilang Sawit Sampadi, Peti Surat 18, 94507 Audited: 2015 69 Sampadi 7,680 2016/2017 Lundu, Kilang Sawit Air Tawar, 81900 Kota Tinggi, Audited: 2015 70 Air Tawar 2016/2017 Johor Kilang Sawit Pontian Plantation, KM52 off Jalan Audited: 2015 71 Pontian Plantation Sandakan-Lahad Datu, PO Box 60525, 91114 14,978 2016/2017 Lahad Datu, Sabah 1.10.2 Progress of Associated Smallholders and Outgrowers for Certifiable Standard All the outgrowers which supplies to Krau palm oil mill are planned to be in RSPO certifiable standard within three years after the mill certified. The progress of the outgrowers will be verified during the next assessment.

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2.0 ASSESSMENT PROCESS

2.1 Assessment Team 2.1.1 Lead Assessor and Assessment Team ST-2 1. Mohan Thavarajah (Lead Auditor). He is an IRCA Lead Auditor and Lead Tutor for ISO 9001 as well as other integrated management systems (ISO 14001 and OHSAS 18001). He holds a Masters in Management of Technology from of Technology Malaysia (UTM) and a Bachelor of Engineering from National University of (NUS). He has more than 25 years’ experience in engineering, managerial, consultancy, training, and auditing in the industrial sector in Singapore, Malaysia, Indonesia, Thailand, Cambodia and other regional countries. Has successfully assisted corporations to establish, implement and maintain (Occupational Health Safety) OHSAS 18001 Management System, Environmental Management System (ISO14001), ISO22000 / HACCP Food Safety Management Systems and Quality Management System (ISO9001) by providing auditing, consultancy and training in the relevant areas for various manufacturing, engineering, plantation, service and government sectors. Currently he is the Intertek Regional Certification Manager. He was a CB Team member in the stakeholder consultation and development of the RSPO Cambodian Local Indicators. He was part of the RSPO Assessment team which audited several RSPO certified Plantation Management Units since 2011. In Initial Audit Stage 2, he conducted an assessment on Legalities Aspects, Land Use Legality & Environment Aspect and Supply Chain requirement. 2. Oktovianus Rusmin (Auditor). Indonesian Citizen. Bachelor’s Degree in Social & Political Sciences Department of Anthropology. Specialists in the field of Social and Cultural (Social Impact & Conflict Resolution) and HCV. Already participated in Forest Management Auditor Training (FSC Standard), ISO 14001 Environmental Management System Training, SVLK (wood legality) Auditor, Indonesian Sustainable Palm Oil (ISPO) and RSPO Lead Auditor Training. He was several times involved in the assessment of Sustainable Forest Management Certification (Standard LEI) and Gap Analysis Audit (FSC Standard). Had worked at the Center for study of Anthropology University of Indonesia and Social Advisor at Tropical Forest Trust (TFT) Indonesia. He was numerously involved in Social Impact Assessment and HCV Identification in Palm Oil Plantations and Natural Forest concessions and was approved as HCV assessor by RSPO for Social Discipline Specialist. Have been involved in several palm oil certifications as Auditor and Lead Auditor. In Initial Audit Stage 2, he conducted an assessment on Social aspect, worker welfare and complaint mechanism. 3. Yudwi Wisnu Rahmanto (Auditor). Indonesian Citizen Bachelor Degree of Forestry with Silviculture background. He worked at professional independent Certification Body as an Auditor for last 4 years and has involved in auditing activities with various certification schemes. Selected training which have been followed, such as RSPO Endorsed Lead Auditor Training Course, ISPO Auditor/Lead Auditor Course, Quality Management System (QMS) ISO 9001:2008 Auditor/Lead Auditor Course, GIS-Basic Mapping and Spatial Analysis, Timber Legality Assurance System (SVLK), Verification Organization Training C.A.F.E Practices (Starbucks) and others internal training programs. He has involved in auditing activities, such as Sustainable Forest Management by FSC FM/COC Scheme, Sustainable Palm Oil by RSPO and ISPO Scheme, Coffee And Farmer Equity (C.A.F.E Practices) Starbucks, Organic Standard (EU, NOP, JAS) for Coffee Farmers and Organic Exchange for Textile. During this audit, he assigned to verify of Conservation, Agriculture Practices and Supply Chain aspect. In Initial Audit Stage 2, he conducted an assessment on Best Agricultural Practices, Conservation, Environment and Supply Chain. 4. Ravi Menon. Graduate from Cambridge University GCE ‘O’ Level-passed in 1959, St..Anthony’s School, Teluk Intan and English College, Johore Bahru. Palm Oil Mill design & Commissioning. Training Engineers in mill design. Consultation work done for a number of mills in Malaysia (W. Malaysia, Sabah & Sarawak) and Indonesia (Sumatra, Pulau Belitong, Papua and Kalimantan) as visiting Engineer. In Initial Audit Stage 2, he conducted an assessment on Mill and Health Safety aspects, waste management and environmental aspect.

2.2 Assessment Methodology, Assessment Process and Locations of Assessment 2.2.1 Figure of person days to implement assessment ST-2 Number of auditor : 4 auditors Number of days for ST-2 at site : 4 days Number of working days for ST-2 at site : 16 Working days

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2.2.2 Detail process of assessment ST-2 The assessment was conducted by measuring the sufficiency of implementation with the consistency done by the Krau Mill - FELDA to the requirements of Malaysia National Interpretation - RSPO MY-NIWG RSPO Principles and Criteria (P&C) for Sustainable Palm Oil Production (Including smallholder NI. Approved by the RSPO Executive Board November 2010. the baseline NI indicators and guidance are as in the approved NI dated 26 April 2008) and Supply Chain Requirement for CPO Mill

The assessment was conducted in three methods: (1) document review, aiming to observe the sufficiency of types or substances from required documents; (2) interview, aiming to obtain more detailed information and cross check the information; and (3) field observation, aiming to observe directly the sufficiency of implementation on site. Some opportunities for improvement of the results ST-2 delivered by the MUTU auditor to the management unit and the results are the subject will be verified at the next assessment phase (ST-2). Improvement of findings from main assesment findings were observed by auditors at this ST-2 assessment. All information obtained was recorded in Check List of PT Mutuagung Lestari (MUTU) and part of ST-2.

The assessment program please find Appendix 2

2.2.3 Locations of Assessment

ST-2 Number of units in this certification activity is five estates, which supply the raw material (FFB) to one palm oil mill. In conducting the assessment, the team of auditors used the 0.8√y formula to determine the management units sampling to be focused on and also considered the issues raised by stakeholder. Based on this formula, the team of auditors determined that sampling locations are one palm oil mill (Krau POM) and two estates (FGVP Krau 04 estate and Lurah Bilut.estate).

1. Supply chain verification. Observation and interview with the operators regarding their job descriptions and responsibilities. Ensuring the operators’ awareness on the Supply Chain System applied in the work. 2. Processing Stage (from Loading Ramp to Dispatch): observation on the processing steps of the FFB to become Crude Palm Oil (CPO), the implementation of OHS, the mill’s emergency response facility, and First Aid facility. 3. Hazardous Waste Temporary Warehouse. Observation on the hazardous waste management that shall comply with the applicable regulations and interviews with the warehouse staff regarding the procedure of hazardous waste management, and the availability of the facilities to handle contamination and exposure. 4. Water Treatment Plan: observation on the pre-processed clean water supply. 5. Waste Water Pond/ Disposal: observation on how to handle the mill’s effluent and the WWTP’s condition which is well-maintained without any leakage and runoff. 6. Methane captures installation. 7. Workshop. Observation on the safety signboard is available. The first aid box is available but the content of the first aid kid box is not complete. 8. Chemical Store. Observation on the chemical storage and the way the kept all the chemicals. The ventilation and security is proper. 9. Worker interviews. There some workers that the auditor interviewed and some of them are awae about OSH, sexual rights, religious rights and racial. They are well aware on the pay and contract agreement between the employer and employee. 10. Harvesting activity. Observation and Interview with harvester regarding Best Agriculture Practices were applied. Visited location Division 01 PM00D Block 36 KRAU 04. 11. Spraying activity. Observation and Interview with spraying operator to ensuring of implementation on Best Application Practices (dosage, weeds target, agrochemical mixing) and OSH. Visited location: PM00D Block 37 KRAU 04; Lot 68877 / 1074 LURAH BILUT. 12. Manuring activity. Observation and interview on Best Application Practices were applied. Fertilizer were applied during field visit is Micro Fertilizer (Rock Phosphate). Location Block 34 PM00D KRAU 04. 13. Slope area Block 22 PM00B KRAU 04. Observation on implementation of conservation area management (terracing, legume cover crops, frond stacking, enrichment plantings with trees – Mahogany, etc.). 14. Conversion planting on Settler field (Lot 6802). Ensuring the implementation of zero burning on conversion replanting (from rubber to oil palm trees).

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15. Stakeholder Consultation. Interview with stakeholders: Internal (gender committee, workers, labor union) KRAU POM and External (Forest Agency, Local Community and Settler/ Peneroka).

2.3 Stakeholder Consultation and List of Stakeholders Contacted

2.3.1 Summary of stakeholder consultation process. Summary of stakeholder consultation process Consultation of stakeholders for Krau Mill – Felda Global Ventures, FELDA was held by: 1. Public Notification 30 days before the initial assessment (1 August 2014) and uploaded on RSPO website (www.rspo.org), company and certification body websites 2. Public consultation meeting with internal stakeholders by interviews Gender Committee and Worker Union on 2 September 2014. 3. Public consultation with local peoples (community surrounding) at Ladang Krau 04 on 3 September 2014. 4. Public consultation with local community (Smallholders) in Lurah Bilut and a few workers on 4 September 2014

Numbers of input from stakeholders were clarified by the management unitsNumbers of input from stakeholders were clarified by the management units. 2.3.2 List of stakeholder contacted Please find appendix 3

2.4 Determining Next Visiting

The next visit (Annual Surveillance Assessment-01) planned on period of June to August 2016.

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3.0. ASSESSMENT RESULT

3.1. Summary of Assessment Report of the RSPO Certification

MUTUAGUNG LESTARI has conducted an assessment of KRAU POM – Felda Global Ventures operation consisting of one (1) mill and five (5) oil palm estates: FGVP Krau 02, FGVP Krau 04, FELDA Krau 1, FELDA Lembah Klau, FELDA Lurah Bilut.

During the assessment, there were five (5) Nonconformities were assigned against Major Compliance Indicators ; seven (7) nonconformities were assigned against Minor Compliance Indicators; no nonconformance against supply chain requirement for CPO mill and six (6) opportunities for improvement were identified.

Further explanation of the non-conformities raised and corrective actions taken by the company are provided in section 3.5. The company has already prepared and implemented the corrective action(s) that had been reviewed and accepted by Auditors in form of documentation evidence(s) e.g. (document record/photographic/etc...). Those corrective actions taken that consist of five (5) Major non-conformities and seven (7) Minor non-conformities had been closed out shall be verified during next assessment.

MUTUAGUNG LESTARI found that KRAU POM – Felda Global Ventures complied with the requirements of RSPO Principles & Criteria and National Interpretation, RSPO Principles and Criteria (P&C) for Sustainable Palm Oil Production, Malaysia National Interpretation Working Group (MY- NIWG), April 2008 and RSPO Supply Chain Certification Standard for CPO Mill, 25 November 2011.

Therefore MUTUAGUNG LESTARI Recommends RSPO Certification of compliance is issued

Ref Std. VERIFICATION RESULT of MUTU-Certification

PRINCIPLE #1 COMMITMENT TO TRANSPARENCY 1.1 Plantation and Palm Oil Factory have to give adequate information for stakeholders in appropriate language and forms, to ensure the effective participation of stakeholders in decision-making. The company was record all of incoming letters by kept and filing on log in book (Buku Rekod Surat Terima Ladang). Several of these letter has been respons, for example the letter from Worker Agency of Raub, Number : JTKRB10/1.1 (1), dated July 23, 2012 regarding Bus Transportation for the Students. Based on information by estate staff that these incoming letter was response but there were not enough evidence if the response already taken and recorded in log out book (Buku Rekod Surat Keluar). There were not consistently between og in book (Buku Rekod Surat Terima Ladang) with log out book (Buku Rekod Surat Keluar). The next verification in Lurah Bilut estate has showed of incoming letter was kept and filing on log in book (Buku Rekod Surat Terima Ladang). For example, any letter from my Tourism TV dated Juli 31, 2014 has recorded in log in book (Buku Rekod Surat Terima Ladang). Based on estate staff clarification that these letter has respon by phone but he did not noted and put of record in log out book (Buku Rekod Surat Keluar). NCR. 2014.01 Major 1.1.1

11 May 2015 The management of KRAU POM has been sent the evidences of book of log in and log out book (Buku Rekod Permohonan & Buku Rekod Maklum Balas) and Instruction by Estate Manager in related to management of Records of requests and responses. Based on the corrective evidence, the non conformity is closed. Status: Comply 1.2 Management documents are publicly available, except where this is prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes. The company has have Standard Operational Procedure of Participative Communication and Negotiation (Document Number : ML- 1A/L2-PR3(0) valid since March 2012. These procedure aim to provide good communication system between the management unit

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ASSESSMENT REPORT with the internal and external stakeholder in related impact of plantation and mill activities to environment (e.q ; hazard risk and impact to social aspect). These procedure described too that the external stakeholder can acces the information from the management unit under mechanism and permit by the top management level or decision maker. Some of Information below is category can access by the external stakeholder:  Land Titles (From Pahang State Governments and records available at respective state Land Offices), Safety and Health Plan, Social Impact Assessment, HCV Identification & Biodiversity Management Plan, Complaint and Grievance SOP, Mechanism of Negotiation SOP, Continuous Improvement Plans, EIA Report, Plan of Pollution Mitigation, Plan of Continuous Improvement, etc Additional Management documents for Felda Pasoh POM and estates that are publicly available, are Code of Ethics, Integrity Policy and Human Right Policy. Status: Comply PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS 2.1 There is compliance with all applicable local, national and ratified international laws and regulations. Evidence of compliance with legal requirements: 1. MPOB License to operate the mill 2. Department of Environment (DoE) Pahang issued the certificate is allow the mill to operate. Vlidily of License 1 July 2014 to 30 July 2015 3. Permit to purchase, store and use 1,5000 Kg Sodium hydroxide was issued on Jan 2014 (valid until Dec 2014) 4. 2 units weighing bridges mounted on load load cells capacities. 5. Energy commission have given approval to the mill to generate a maximum of 1,800 KW using renewable energy and diesel oil. 6. License to use water for mill operation, issued by Pahang state government 7. Diesel Storage (Permit No: PPO.RB.35/13 (PA)/PP, issued on 2 March 2014 8. Energy commission was approve of competency of electrical chargeman. 9. Compliance with the requirements of the Factories and Machinery (Noise Exposure) (Regulations)1989 10. Company registration 974 143/4 FELDA GLOBAL VENTURES, mills listed under thus body on 6 Jan 2012. Status: Comply

2.2 The right to use the land can be demonstrated, and is not legitimately contested by local communities with demonstrable rights Krau POM has legal right on land ownership from land office and FELDA. Boundary markers were available by document and photos, No dispute and conflict recorded so far. All the three estates have a clear legal lease from the state government. Physical boundary markers were established and no land dispute was recorded. Evidence legal ownership of the land including the history of land tenure. The land was leased by Pahang State Government to FELDA for a period 99 years , The plantation had been paying the tax to the government every year. Status: Comply 2.3 Use of the land for oil palm does not diminish the legal rights, or customary rights, of other users, without their free, prior and informed consent. Legal purchase, compensation as the land belonged to the State of Pahang, and it was released to settlers for development. All land in the three estates are properly leased, surveyed and marked. No record of other users customer right have arised. Status: Comply

PRINCIPLE #3 Commitment to long-term economic and financial viability 3.1 There is an implemented management plan that aims to achieve long term economic and financial viability.

Commitment to long term Economic & Financial viability FELDA has a comprehensive management plan, managed by expert in the field of business management located at Felda Head Quarters. Very senior officers with vast experience carry out financial and economic viabilities of new projects. The input for most of the planning have to originate from the base level, e.q mills and estates or other operating units, if the operations are associated with plantation industry. Mills prepare yearly and two year budgets and they are very detailed. The documents are:  Annual Budget with a minimum two years of projection is in place till 2016

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 Forecast of yield/ha, CPO/Ha and oil extraction ratio and maintained and displaced prominantly  Replanting: 5 years projection are in place Status: Comply PRINCIPLE #4 Use of appropriate best practices by growers and millers 4.1 Operating procedures are appropriately documented and consistently implemented and monitored. Felda have “Manual Ladang Sawit Lestari / Sustainable Palm Oil Guidelines, June 2012” for the Estates, the Mill and other pertinent areas of operations such as stores and workshops available in .  Operation manual (Manual Operasi) ref: FPI/L3/15-01 latest update 30/06/2001.  Laboratory manual (Manual Operasi Makmal) ref: FPI/L3/14-01-01 latest update 25/02/2010  Safety procedure (Prosedur Kerja Selamat) ref: FPI-PK-001 latest update 14/07/2010  QOSHE procedure (Manual Prosedur QOSHE) ref: FPI/L2/QOSHE-1.0 latest update 15/11/2010  Documented SOP inspected well prepared  Monitoring done by SIRIM under ISO Certificate 90001 (yearly). Records kept in 25 files under each sectors.

The SOP implementation was consistently checked by mean of internal and external audit such as:  Internal audit report and QOSHE internal audit (Laporan Audit Dalaman & Laporan Audit Dalaman QOSHE) and External audit by SIRIM on QOSHE.

Krau palm oil mill also has also maintained records of Internal and External Suppliers. Record of External Suppliers is available and well recorded.

All the estates which taken as sample has the following SOP documented and available at the office (standard for all FELDA operation):  Estate operating manual (Manual Pengurusan Rancangan) last revision on July 2010  Manual on sustainable oil palm estate, latest edition II, 1 Jun 2012 section 1-5  Safety and health manual, latest revision 2009  Manual on FGVPM operation (same as Manual Ladang Lestari)  Manual on FFB Grading from MPOB  Salary standard (Buku Kadar Upah Pekerja) ref: Bil. 01/2012  Manual Perolehan (ref: SuratArahanBil 28/2014)

Checking on the implementation was appropriately done, as seen in the following documents: (1) Rekod Aktiviti Ladang (record of field activities) (2) Rekod Hasil (record of yield) (3) Rekod membaja & meracun (record of spraying and manuring)

During field observation in estate: FGV KRAU 04: 3rd September 2014. Block 36 PM00D (Harvesting activities), Block 34 PM00D (Fertilizing), Block 37 PM00E (Spraying activity). Based on interview with the workers known that all activities are well implemented and appropriate with the manual procedures for estates. FTPSB LURAH BILUT: Lot 6802. During field visit on 4th September 2014, in Smallholder’s area which managed by FTP, it was identified that this area is being converted from Rubber to Oil Palm. This area was planted in June 2014 and clearly applied of GAP. No evidence of burning within land preparation Status: Comply 4.2 Practices maintain soil fertility at, or where possible improve soil fertility to, a level that ensures optimal and sustained yield. Records of fertiliser inputs are maintained in the database set aside for this purpose and split into each estate, these details are readily available through the database system maintained by Felda Agricultural Services Sdn Bhd. Annual fertiliser inputs are then

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ASSESSMENT REPORT further recommended based on this data for future applications.

Felda Agricultural Services Sdn Bhd also carries out regular annual tissue and soil sampling. The results of the analysis of the samples are used to optimize fertilizer requirements. The Soil Sampling survey is completed as part of 3-5 years rolling plan that just recommended for the period 2011/2015 whereby 20% of all estate soil is sampled each year. Records are in place for all areas tested and included block number and estate name. Each block and each result is independently logged in a spread sheet for each block.

All palm by-products including fronds, EFB, compost, effluent and expeller are recycled. These are used as nutrients and are applied to improve organic matter and to substitute or supplement inorganic fertilizer. Fronds are also used to prevent erosion following pruning and after harvesting of FFB.

The last tissue sampling was carried out on 18 July 2014 record held on fertilizer recommendation for 2015 Leaf and Soil Nutrient level.

Status: Comply 4.3 Practices minimize and control erosion and degradation of soils. In all estates there is terracing in areas to reduce soil erosion. To prevent erosion, the pruned fronds placed in a position to reduce erosion in the form of frond boxing. Rainfall run off is minimised where necessary by construction of strategically placed drains. Inspection of field conditions confirmed that Felda has implemented appropriate practices for minimising soil erosion. These include stop bunds on terraces and maintenance of adequate groundcover vegetation. Inspection to the estate indicated good ground cover.

Figure 1 Terrace in sloping area Block 19 PM00B Krau4

Figure 2 Terrace in Slope area of Smallholder's land in Lurah Bilut

Inspection of field conditions confirmed that Felda has implemented practices for minimising soil erosion. These include stop bunds on terraces and maintenance of adequate groundcover vegetation. Inspection to the estate indicated good ground cover; cover crop is well established in some estates and this keeps erosion controlled effectively.

There are no peat soils in Felda areas were identified. According to survey carried out by FELDA Agricultural Services, Sdn Bhd, soil

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ASSESSMENT REPORT type of Krau4 and Lurah Bilut areas are local classification name: , Bt. Anam, , Bungor, Musang, Rasau and Alluvium. There is no fragile soil like sandy or acid sulphate soils, which required special treatment. Status: Comply 4.4 Practices maintain the quality and availability of surface and ground water. In the field assessed, of Bilut River, PM00D Block 36 FGV Krau 04, it was identified that riparian buffer zone as conservation area has clearly eroded by water flow. In addition, based on interview revealed that agrochemical usage (circle spraying) is permitted. However, there is still lack of evidence that riparian zones is maintained appropriately to protect of water course and avoid of soil erosion. Non compliance under NC No.2014.02

11 May 2015 The management of KRAU POM has been sent the evidences of sign board installed for buffer zone and memorandum from Estate Manager in relation protection for river buffer zone (to avoid of chemist application and illegal activities) and there was shown evidences of Water Management Plan (Pelan Pengurusan Air) till December 2014 Based on the corrective evidences, the non conformity is closed.

Also, they had not been demarcated and erected with appropriate signage. A map of the riparian buffer belts was made available to the assessment team.

Figure 3 Riparian zone of Sungai Bilut at Krau 4 There was no construction of bunds/weirs/dams seen across the main rivers or waterways in the estates visited. Likewise, all streams and drainage sighted were without any obstruction. All estates had been monitoring the rainfall data as well as their water consumption as required by RSPO criteria & indicator. Daily records of rainfall data for each scheme were made available for inspection. The data was used in the water management for each scheme. Rain water harvesting was not practiced at line sites, mill and estate complexes. Water management plan has not been effectively implemented. NCR. 2014.03

11 May 2015 There was shown evidences of Water Management Plan (Pelan Pengurusan Air) till December 2014. Based on the corrective evidences, the non conformity is closed. Status: Comply 4.5 Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate Integrated Pest Management (IPM) techniques. Felda are monitoring the toxicity of pesticides used and to date records are available for the last five years and are tabulated. There is an Integrated Pest Management Program (IPM) for specific pests as documented in FELDA Manual Operasi Ladang Sawit

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Lestari. There is a measurement of the amount of each pesticide used and type for each specific pest. At the present time there are no outbreaks of Leaf Eating Caterpillars. Beneficial plants have been established along the main access roads, including Turnera subulata and Antigonon leptopus. Rhinoceros beetle handle by beetle trap (1 trap for every 2 hectares), pheromone for rhinoceros beetle, and stack trap for rhinoceros beetle. Barn owl also implemented but the target to reduce chemicals by IPM implementation not yet set. A number of beneficial plant species are used in biological control of pests. Among the plant species are Turnera subulata, Cassia cobenensis and Antigonon leptopus. Naturally grown weeds were left to grow on exposed areas to serve as cover crops. FGV KRAU 04: Beneficial plant was planted along the road side and within the plantation (every 60 m), meanwhile FTPSB LURAH BILUT Beneficial plant was planted in Nursery, because smallholder’s areas are still immature crops Status: Comply 4.6 Agrochemicals are used in a way that does not endanger health or the environment. There is no prophylactic use of pesticides, except in specific situations identified in national Best Practice guidelines. Where agrochemicals are used that are categorized as World Health Organization Type 1A or 1B, or are listed by the Stockholm or Rotterdam Conventions, growers are actively seeking to identify alternatives, and this is documented. There is a formal justification for agro chemical use and this is documented within the IPM, which attempts to ensure that the most effective and least harmful chemicals are always first choice. The IPM provides guidance on the selection of the appropriate chemical for particular locations and field conditions. The quantity of chemical and treatment required is documented in Section 4 of the Manual Ladang Sawit Lestari No. Dok: MLSL (Ed.2). The basis of SOP for chemical was developing by CHRA report and rating by HIRAC, there is dosing or quantity calculation of every chemical use, and protective equipment needed. It stipulates the maximum dose possible for each application. There are also plans in place to gradually reduce the use of Agrochemicals. The usage data provide evidence to demonstrate that this is in fact happening. There are time frames and targets in place in the IPM whereby chemical use is to be reduced. Management unit of all estates having list of pesticides used, there are: GC Paraquat (Paraquat dichloride); Juru 20F (Methyl metsulfuron); Ecomax (Glyphosate isopropilamine); Garlon 250 (Triclophyr butoxy ethyl ester); Basta 15 (Glufosinate ammonium). Active ingredient of Paraquat dichloride is 13%, its refer to national regulation (Pesticides Act 1974, act 149). During interview with pesticides applicator in Block 37 PM00E (FGV Krau 04) and Lot 6802 (FTPSB Lurah Bilut), it was clearly inform that pesticides application is used for 4 hours daily. All sprayers team is male and migrant workers. Annual medical surveillance for pesticides operator (sprayers) in FGV KRAU4 has done on 18 April 2014, whereas the sprayers in FTPSB LURAH BILUT have not getting yet. NCR. 2014.04

8 Jan 2015 The management of Krau POM had been sent an evidence of annual medical surveillance for all pesticide operators (certificate of fitness by dr. Halim bin Ishaq – Sulaiman Clinic, Pahang Darul Makmur, dated 8 December 2014). Based on the corrective evidence, the non conformity/NCR. 2014.04 is closed.

Evidence of chemical residues in CPO testing, as requested and conducted by the buyers is not available NCR. 2014.05

8 Jan 2015 The management unit had sent evidence of letter of assignment for CPO testing officer but evidence of chemical residues chemical residues tested of CPO product is not yet available. Based on those an evidence the NCR. 2014.05 is still Open.

11 May 2015 There is an evidence of Letter from Management Representative of Krau POM to Nabbir Laboratory for analyze the sample of CPO from Krau POM. Based on the corrective evidence, the non conformity is closed with observation. Status: Comply 4.7 An occupational health and safety plan is documented, effectively communicated and implemented. Occupation Safety and Health plan in compliance with OSH Act 1994, Factory Machinery Act 1967, Poisons Act 1952 and Fire services Act 1988 was documented and implemented adequately. Among action items in the OSH Plan are medical surveillance, chemical health risk assessment, fire drill, and training on PPE, first aid training, chemical storage management and safe work

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ASSESSMENT REPORT procedures.

Felda Krau PMU mill and estates have established their accident reporting KPI and incident monitoring implementation according to DOSH (JKKP) requirements. Records of all accidents have been adequately maintained by the POM and Estates OSH PIC. Lost Time Accident (LTA) has been monitored and recorded and submitted to JKKP as per legal requirement. The LTA Rates for Mill and Estates for FY/2014 2013 is zero (0) to date.

Based on the field stakeholder survey, it was confirmed that there were no lost time accidents from FY2013/2014 to date. Field observations also verified that all staff, workers, contractors, smallholders were aware and complied with safety requirements and confirmed that there were no lost time accidents for FY2013 to FY2014 to date.

OSH policy was clearly displayed at Felda Krau POM and in estates offices. Workers had demonstrated awareness towards occupational safety and health policy and related requirements.

Regarding workers insurance, Local staff and workers are covered by SOCSO (Employee Social Security Act 1969) as per local labour laws. All foreign workers e.g: from Indonesia, Bangladesh and India are covered for accident insurance as required by local labour laws by private sector (AXA Insurance).

Hazard identification and risk assessment were carried out on all mill and estate operations -eg noise exposure , sterilizer and boiler operations at mill ; harvesting , FFB handling & grading , manuring , pesticide/ chemicals exposure , replanting at estates as well as fire hazards . Suitable mitigation actions including Safety Work Procedures, training & awareness have been taken to ensure residual risk is minimized. Procedures have been documented and actions have been implemented on the OHS issues concerned.

Awareness and training have been appropriately provided to mill and estate workers. OSH awareness and training program planned for the year 2014 was consistently implemented. Evidence of training on the safe working practices of workers involved in mill operations, pesticides spray, use of fire extinguisher awareness and understanding of MSDS/CSDS. First aid boxes were sighted at Felda Krau POM and estates. During the assessment the auditor have observed the training documentation Training for staff and records show that training included employees for mill. Training program include for Operator pressing, loading ramp, sterilizer and especially for operator which worked at high noise level station

Precautions attached to products are properly observed and applied to workers in mill and estates. Appropriate PPE (safety boots, helmets, rubber boots, cartridge masks, safety goggles, gloves) verified to be provided to employees of mill and estates. Felda Krau PMU had provided the appropriate PPE at the place of work to cover all potentially hazardous operations such as pesticide applications, land preparation and harvesting (estate) and boiler and sterilizer operations (mill).

The safety and health committee chairman and committee members are responsible for overall in charge of safety and health planning operation and coordination. Safety meetings have been adequately conducted in POM and Estates- once every 3 months. Adequate fire extinguisher, fire hydrants and hose reels found to be located at strategic locations operational and maintained in good condition.

Based on document verification in Lurah Bilut Estate that shown: a) OHS Plan was not adequately documented in Felda Bukit Lurah estate. b) OHS meetings were not conducted at stated frequency interval of three months.

The management of Krau POM had been sent an evidence of but OHS Minutes Meeting after April 2014 is not yet available. NCR. 2014.06

11 May 2015 a. The management of FTP Lurah Bilut was sent the evidence of OHS Plan (Januari till December). b. There were available evidences of OHS meeting at Felda Lurah Bilut on 6 June 2014 (attached Minutes of Meeting and Pictures of activities). Based on those corrective evidence, the non conformity is closed.

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Status: Comply 4.8 All staff, workers, smallholders and contractors are appropriately trained. Mill and estates person in charge mentioned that they has gone through some training however they can’t recall when was the training being held. Moreover, the documentation wise was not properly taking care of. There are no records of TNA (Training Need Analysis). 1) Training plans were there in all the audit locations but it have not been updated accordingly 2) Training records for all the planned training was not available 3) Training effectiveness evaluation was not available for all manage NCR. 2014.07

11 May 2015 The management unit has sent an evidences : 1. Training Schedule for employees and contractors (January till December 2014). 2. Attendant List of training for operators and other employees in 11 July 2014 and 24 November 2014. 3. Evaluation results of training for plantation employees, contractors and peasants (peneroka). 4. Assignment Letter by Krau Mill Manager for officer responsible for the training.

Based on those corrective evidence, the non conformity is Closed Status: Comply

PRINCIPLE #5 Environmental responsibility and conservation of natural resources and biodiversity

5.1 Aspects of plantation and mill management, including replanting, that have environmental impacts are identified, and plans to negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continuous improvement. Krau 4, Lurah Bilut Estates and Mill had conducted the environmental aspects and impacts risk assessment for all activities related to estate and mill operation as well as other facilities such as the workshop, chemical and waste stores, laboratory, effluent and water treatment plants. The aspect-impact assessment was reviewed annually and reported to Department of Environmental. Records of assessment “Laporan Aspek Impak Alam Sekitar Melalui Aktiviti Perladangan, Bahan Buangan dan Pencemaran (No. Doc: 1/2014, dated 9 July 2014)” are in place. Status: Comply 5.2 The status of rare, threatened or endangered species and high conservation value habitats, if any, that exist in the plantation or that could be affected by plantation or mill management, shall be identified and their conservation taken into account in management plans and operations. Sustainability Department from FELDA Agricultural Services Sdn Bhd had compiled information about the status of High Conservation Value (HCV) within and adjacent to their FELDA Krau Complex. The HCV Assessment Report, completed in 2013, had assessed HCV sites in each of the four land schemes visited, that is, FGVP Krau 02, FGVP Krau 04, FELDA Krau 1, FELDA Lembah Klau and FELDA Lurah Bilut with total assessed area is 14,619.48 Ha. The HCV assessment had identified protected, rare, threatened or endangered species based on wildlife national protection laws and not mention where the species found / seen. The Management Plan and Action Plan for 2014/2015 had been developed based on the assessment finding and consultation with related stakeholders. Specific sites had been identified in each of the estate for protection of their high conservation values. Sites with HCV 2 (Riparian zone of Sungai Bilut), HCV 4 (Sungai Bilut and Sungai Klau), HCV 5 and HCV 6 (Krau & Lurah Bilut) had been identified as Conservation area. List of species were identified according to National status Wildlife Conservation Act 2010) and IUCN as follows: FGVP Krau 04 Area Local Name - Aves Scientific name National status (Wildlife IUCN status Cons. Act 2010) PM90A, • Murai Kampung • Copsychus saularis • Protected J-1 • LC PM00B, • Gembala Kerbau • Acridotheses tristis • Tidak dilindungi • LC

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PM00E • Ruak-ruak • Amaurornis phoenicurus • Protected J-1 • LC • Gagak • Corvus splendens • Tidak dilindungi • LC • Terkukur • Streptopelia chinensis • Tidak dilindungi • LC • Merbok • Geopelia striata • Tidak dilindungi • LC • Ayam Hutan • Gallus gallus • Protected J-1 • LC Area Local Name – Scientific name National status (Wildlife IUCN status Cons. Act 2010) PM90A, • Landak raya • Hystric brachyura • Protected J-1 • LC PM00B, • Babi hutan • Sus sucrofa • Protected J-1 • LC PM00E • Tupai pokok • Tupaia gilis • Protected J-1 • LC • Tikus • Rattus tiomanicus • Tidak dilindungi • LC

Area Local Name – Reptiles Scientific name National status (Wildlife IUCN status Cons. Act 2010) PM90A, • Ular Sawa • Phython reticulatus • Protected J-1 • NE PM00B, • Biawak air • Varanus salvator • Protected J-1 • LC PM00E

Implementation of management plan was observed during field observation, such as signboard of “No hunting/fishing”, “No Encroachment”, “Buffer Zone Area” are installed. According to the stakeholders consultation also informed that smallholders “peneroka” or community or workers will be reported to the Department of Forestry and Wildlife Conservation (PERHILITAN) if they’ve seen of those species. Status: Comply 5.3 Waste is reduced, recycled, re-used and disposed of in an environmentally and socially responsible manner. Waste products had been identified and documented with plans to reduce and dispose them in an environmentally and socially responsible manner. Among the wastes which had been identified were general/domestic waste, scheduled waste, scrap metal, crop residue/biomass, fiber, shell, EFB and POME from the mill. Plans to avoid pollution were in place. It included diesel tank bunding, dedicated waste stores, concreted workshops, oil traps and controlled household waste disposal. Line site discharge was also included in the plans. Their general domestic wastes were collected and disposed by burying them at internal designated landfill areas. Proper signage had been erected at the landfill site. Wastes from the palm oil milling process had been disposed as follows: EFB and decanter cake were sent for mulching in the field, while crop residue/biomass i.e. fiber and shell were used as fuel in the boiler. Palm oil mill effluent (POME) was treated in the effluent treatment plant and finally discharged into the waterways. Other liquid spills had been identified and mitigated through the use of sand or oil trap.

During interviews with spraying team and relevant management representative, there still lack of evidence that agrochemical waste are disposed or kept in appropriate manner and well implemented. NCR. 2014.08 Status: Comply 5.4 Efficiency of energy use and use of renewable energy is maximized. The summary and data flow charts of renewable energy use per ton of crude palm oil or palm plant products and flowcharts are not yet available. NCR. 2014. 09

08 Jan 2015 The management unit had been sent evidence of shell & fibre record used and data flow charts of renewable energy use per ton of CPO or palm product in the mill. Based on that evidence, NCR. 2014. 09 is closed.

During the assessment team auditor observed the biogas plant was still in installation process. Electricity generation for mill operation

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ASSESSMENT REPORT produced from steam turbine / boiler where shell and fiber used as burning source [renewable energy]. The mill subscribes electricity from TNB for workers quarters [Tube Well], office, and water pump and biogas plant operation. As for mill operation it only uses at beginning of daily operation to starts the turbine engine Status: Comply 5.5 Use of fire for waste disposal and for preparing land for replanting is avoided except in specific situations, as identified in the ASEAN guidelines or other regional best practice. It was verified during the assessment through site visits, interviews and records that no open burning had been carried out in line with the policy on zero burning. The Scheme and Plantation Managers had carry out training and provide extension support to their participants to avoid open burning. It was evident that at the line site garbage collection contractors came to collect the household refuse. FELDA Lurah Bilut has replanting (conversion planting) from Rubber to Oil Palm. In the fields assessed there were adequate warning signs not permitting open burning. It was clear that LC using felled, chipped, windrowed or pulverized. No open burning was found.

Figure 4. Replanting area on Lot 6802 FELDA LURAH BILUT

Figure 5. Sign Board of ZERO BURNING at Smallholder’s land

Status: Comply

5.6 Plans to reduce pollution and emissions, including greenhouse gases, are developed, implemented and monitored. The main program planned by the Krau palm oil mill to reduce the pollution and gas emission was to build and operate the biogas plant and during the field observation the realization of the plan is still installment. The assessment of polluting activities also conducted by the management unit are:  Effluent BOD/COD/TDS/AN/O & G  Black smoke , on line monitored  Particulate emission (<0.159/NH3)  Sox <100 ppm

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 CO2 < 150 ppm  Effluent > 8 m/s  Smell DoE report

Reduce, reuse and recycle practice has been implemented in the estates where collection center for the recyclables is in place to be utilized for the 3R activity. No evidence found on the monitoring system conducted due to the unavailability of the discharge and emission Status: Comply PRINCIPLE #6 Responsible consideration of employees and of individuals and communities affected by growers and mills

6.1 Aspects of plantation and mill management, including replanting, that have social impacts are identified in a participatory way, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate the continuous improvement. The company has been done of Social Impact Assessment. There was estabilished report of Social Impact Assessment of Felda Golden Ventures – Krau POM. These report is described of positive and negative impact by plantation and mill operational, plan for monitoring and manage those impacts. The company will monitoring and manage that aspects below:  Access of community to facilities (road and recreational area)  Additional activities of community for welfare increasing (provide of market area and skill training)  Religion and cultural aspect (provide of mosque)  Access to education and health facility (provide of school and health facilities adjacent pantation area)  Transportation infrastructure, communication process and migrant influence (implies to income of local people)  Replanting program (positif and negative impacts) There were questioners as a tool that the company used for gathering information and available of attendant list dated July 17, 2014.

The company has showed of invitation letter and attendance list of Social Impact Assessment in Krau 04 Estate, Krau POM & Lurah Bilut Estate. There were available of several questioner as tools for gathering information but limited to internal stakeholder. The eveidence of participate by external stakeholder as representation of community member or smallholder peasant (peneroka) is not quite. NCR 2014.10 Observation 8 January 2015 Management unit have show the evidence by collecting data from management (sending out questionnaires SIA) mainly from external stakeholders. The non conformity is closed.

There were available of monitoring and management plan of Social Impact Assessment but data collected just limited to internal stakeholder. These indicated that plan for mitigation and monitoring was not represented of community or smallholder peasant interest as external stakeholder that implies by the negative or positive impact of plantation and mill activities. NCR 2014.11 8 Jan 2015 The management unit had sent evidence sample of questioner for gathered data from external stakeholder. The management unit had sent evidence of Plan for evaluation Mitigation SIA for Stakeholders. Based on the evidences givens by unit management. The non conformity is closed. Status: Comply 6.2 There are open and transparent methods for communication and consultation between growers and/or millers, local communities and other affected or interested parties. The company has have Procedures of Communication, involvement and bargaining (Communication, Participation and Communication), Document Number: FPI / L2 / QOHSE - 6.0. The purpose of these procedures is to provide a system of communication with internal and external parties associated with environment around, hazards and risks in the workplace. There are records of consultation and communication between management unit with stakeholders, for example:  Letters for Joint Information Program Regional Stakeholder Raub and Bentong Regional Implementation For RSPO ( Number : 2740 / 2-5-2-4 Pt.3, dated August 25, 2014 )  Material delivery of information about activities of RSPO stakeholders, dated August 29, 2014.  Minutes of the question and answer at the time of delivery of information about RSPO to stakeholders, dated August 29, 2014).  List of Participants Attending the delivery of information about RSPO to stakeholders, dated August 29, 2014). SPO – 4006e Page 29 Prepared by Mutuagung Lestari for KRAU POM – Felda Global Ventures (FELDA)

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In accordance with the procedure of Communication, involvement and collective bargaining (Communication, Participation and Communication), Document Number: FPI/L2/6.0 QOHSE-known that there are officers on duty to consult and make a report related of information received and follow-up. Officers who have been assigned, respectively are:  Krau 4 : Zulkifly Bin Osman, Assistant Field Manager, based on Decree Manager of Krau 4, dated March 1, 2013.  Krau POM : Azmi Bin David, Speaker Analysis Makmal Berau, based on Decree Manager of Krau POM Number 4062/KKRU/840/15.4 dated August 18, 2014.  Lurah Bilut: Wan Mohd Ali Bin Zamree, based on Decree Manager of Lurah Bilut, Number: (13) 3008 /2-1-23, dated January 6, 2014.

Felda Golden Ventures – Krau POM has have list of stakeholder surround, these document is kept in each plantation management units and at Krau POM. There is any staff in every management unit to establish of communication process with communities and the other stakeholder adjacent of plantation area. For examples:  At Krau 4 is Zulkifly Bin Osman, Assistant Field Manager, based on Decree Manager of Krau 4, dated March 1, 2013.  At Krau POM is Azmi Bin David, Speaker Analysis Makmal Berau, based on Decree Manager of Krau POM Number 4062/KKRU/840/15.4 dated August 18, 2014. At Lurah Bilut is Wan Mohd Ali Bin Zamree, based on Decree Manager of Lurah Bilut, Number: (13) 3008 /2-1-23, dated January 6, 2014.

Status: Comply 6.3 There is a mutually agreed and documented system for dealing with complaints and grievances, which is implemented and accepted by all parties. The company has have Book Complaint Record. Based on document verification showed that there are no complaints from the surrounding community. There are only a few complaints from employees about the conditions surrounding the housing. For examples complaints from employees on August 12 about waste around the living area. The management units have follow up by performing the removal of garbage and revised schedule of rubbish removal. Based on the results of external stakeholder consultations in Krau 04 Estate and Lurah Bilut Estate showed that there are no complaints from the public about plantation management and mill activities. Felda Golden Ventures Plantation already has Procedures of Complaint and Grumbling Handling (Number: ML - 1A / L2 - PR4). The procedure aim to resolve all complaints and grievances fairly and to maintain good relations between the company and other parties. The results of stakeholder consultation with communities adjacent of plantation area also showed that no complaints were caused by plantation and mill operations. In general, the stakeholders explained that existence of plantation and mill has opened employment opportunities, provision of facilities and improvement of economic aspects of surrounding community. Status: Comply

6.4 Any negotiations concerning compensation for loss of legal or customary rights are dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions. Felda Golden Ventures has have Procedure for Knowing Legislation and Indigenous Rights (Number: ML1A/L2/PR12. These procedures as a guide to resolve problems of land boundaries among company and local communities related to legal or customary rights. Based on interviews with staff of Krau 04, external stakeholders and information from community around the area managed by the FGV - Krau POM, there are not area was control by indigenous rights and there are not compensation processes. All of plantation area are managed by FGV has been set by the Malaysian Kingdom in early the company began to operates. The communities around the plantation area it was the third generation of people who also have acquired land by the Kingdom of Malaysian. These programs were begun in period 1949 - 1950. There are examples of land management rights of smallholder (Peneroka) in Lurah Bilut. Those documents consists of :  Record of land use rights (Ketuanpunyaan) on behalf of Hoi Lai Moon, Number. kp : 490412-10-5445  Land Maps (Proprietary Fixed ), widely 1011.71 Metres Land tax : RM 37.00/year and validity period of ownership, based on tax liability is 99 years (valid until March 11, 2048) Status: Comply 6.5 Pay and conditions for employees and for employees of contractors always meet at least legal or industry minimum standards and are sufficient to provide decent living wages.

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Felda Golden Ventures has provided wages in accordance with applicable regulations. Based on the Letter Number: (02) 010810 /HQ/ JAB.OP.14/ plantion / KUK, Dated : March 7, 2014 from the Executive Vice President (CEO ), Head of Plantation Cluster, Felda Global Ventures Plantation (M) Sdn, Bhd to all Plantation Manager, Felda Global Ventures Plantations (Malaysia ) Sdn Bhd in related levels of workers minimum wages Number 4/2014 FGVPMSB. Since April 1, 2014 was decree that all field workers have opportunities to receive income not under of RM 9000.per month. These policy is related with implementation of Section 4 (2) Deed (Akta 732 Perenggan 6 Perintah Gaji Minimum 2012) about Minimum Salary on 2012 . There are examples of wages slip Month June 2014 : Krau 04 Estate 1 Ahmad Rifai (Operation worker / maintenance of plants ): 23 work days, wage = RM 1.036.88 2 Ershad (Harvesters ) : 26 work days, wage = RM 1.283.47

Lurah Bilut 1 Riski (Operation worker / maintenance of plants ) : 24 work days, wage = RM 1.482.87 2 Kamaruddin ( Workers Harvesters / Harvest ) : 24 work days , wage = RM 1.016.94

There are 2 formats of labor agreements in Felda Global Ventures Sdn Plantations - Malaysia, namely : 1. Employment Agreement for local residents (Malaysia), in the employment agreement was described of minimum wage, time off or holidays as well as other rights and obligations for workers . 2. Work Agreement with Foreign Workers (for example with Indonesian Labor) : in the employment agreement described in Indonesian version about minimum wage, time off and holidays , workers right and their obligations. One of sample Letter Employment Contract Agreement Between Felda Global Ventures Plantations (Malaysia ) Sdn.Bhd ( 974143 - H) with worker from Indonesia on behalf of Angga, Passport Number : AS 70 138, dated 09/19/2013, agreement valid since September 24, 2013. These document signed by employer (Azrul Adely Bin Moh Termizi – Pengurus Jabatan Tenaga Kerja Felda Global Ventures Plantations (Malaysia) Sdn.Bhd dan Khairul Shahzli MD Saleh – Eksekutif Jabatan Tenaga Kerja Felda Global Ventures Plantations (Malaysia) Sdn.Bhd and the workers: Angga.

Based on field visit, interviews with the worker and document verification in Lurah Bilut was known that there are 10 foreign workers from Indonesia. For example is Riski ( Passport : USA 844 581 valid till 2018), began work on February 28, 2014 and Kamaruddin (Passport : AS888400 valid till 2018), began work on June 14, 2014. There are documents for foreign workers, among others :

The data base contains information about worker's name, date of start working and heir in Indonesia . Employment Contract Letter of Agreement Between Felda Technoplant Sdn. Bhd with the foreign Labor. Based on sampling of documents was known that contract is not signed by the parties, namely representatives of the management and the workers. NCR. 2014.12

11 May 2015 The management of Lurah Bilut Estate has been sent the evidences of contract for foreign worker (legal agreements or direct contracts with the foreign workers and Felda). Based on the evidences givens by unit management, the non conformity is Closed. Status: Comply 6.6 The employer respects the right of all personnel to form and join trade unions of their choice and to bargain collectively. Where the right to freedom of association and collective bargaining are restricted under law, the employer facilitates parallel means of independent and free association and bargaining for all such personnel. The FGV - Plantation has have company policy (Malay version - Police Rights and Freedom Voice of Unity). These document is contains explanation about freedom of association and argue for workers. Published and signed by President & CEO of Felda Global Ventures – Plantation. The Workers union have formed with the name of the Unitary Workers Felda Palm Industries Sdn.Bhd (Registration Number: 505, was registered at Ministry of Domestic Affair). Parent of this labor organization has been established since 1976. There has been also Unitary Workers Regulations Felda Palm Industries Sdn.Bhd was valid today for and be issued a new regulation if there are changes or additions of chapters and verses contained in these regulation. Based on the results of interviews with Labour Organization FGV-Krau POM was known that there are two types of meetings are routinely performed, namely :  Meeting every 3 years for succession of organization staff and discussions related matters wage system.  Regular meetings every 6 months between the organization's staff in related to organize of program.

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Status: Comply

6.7 Children are not employed or exploited. Work by children is acceptable on family farms, under adult supervision, and when not interfering with education program. Children are not exposed to hazardous working conditions. The FGV - Plantation has had a policy regarding the minimum age to work. Published and signed by President & CEO of Felda Global Ventures. In the policy explained that children under the age of 18 are not allowed to work in accordance with applicable regulations. Based on verification of Workers Database at Krau 04 and Lurah Bilut period August 2014 (based on age or date of birth) there are no workers under 18 years old. Status: Comply 6.8 Any form of discrimination based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation, or age, is prohibited. The FGV - Plantation has had a policy of equal opportunities for work, published and signed by President & CEO of Felda Global Ventures . In the policy explained that management will strive to ensure that all workers get the same opportunities without refer on nationality, citizenship, religion, physical condition, sex, age, membership organizations and political affiliation. Based on verification of workers data base at Krau POM, Krau 04 and Lurah Bilut, it was showed that also any foreign workers from a variety of places, among others: India, Bangladesh and Indonesia. Status: Comply 6.9 Policy to prevent sexual harassment and all other forms of violence against women and to protect their reproductive rights is developed and applied. The FGV - Plantation has had a policy for the prevention of abuse and violence against women and the protection of reproductive rights.These policy published and signed by the President & CEO of Felda Global Ventures. The Gender Committee has been formed in Krau POM and Krau 4, while in Lurah Bilut are in the process of forming. There are available minutes of meeting and attendant list of Gender Committee meeting in Krau POM and Krau 4. There is a specific complaint mechanism by women who had been fitted with following flow chart handling gender.These document as guidance to resolve the problem in relation to gender aspects. Status: Comply 6.10 Growers and mills deal fairly and transparently with smallholders and other local businesses. Pricing mechanism is determined by a meeting of the parties, among other: MPOB, growers and others. There are examples of pricing TBS issued by Jabatan Belian Buah Tandan Segar (BTS) in Semenjanjung of Malaysia, Sabah and Sarawak period 1 to 31 August 2014 and also the price of FFB for the period of September (date 1 and 2, the price at the time of the audit). Management unit of Krau POM was kept and filled of FFB pricing documents and also was posted on information board in the factory area. The company has been showed of Work Agreement between Felda Palm Industries Sdn.Bhd with the local contractor. For example Work Agreement Number 359584 - V with Bumi Harmony Engineering Supply, dated December 10, 2013 regarding on replacement of connecting shaft conveyor, total cost is RM 1.600,00. There is sample of payment record :  Proof of payment via Maybank on behalf of Bumi Harmony Engineering Supply, dated August 8, 2014, aged total employment is RM 1600.00  Invoice of Bumi Harmony Supply to Krau POM, dated July 22, 2014 Proof receipt of goods by Felda Palm Industries, dated July 21, 2014 Status: Comply

6.11 Growers and millers contribute to local sustainable development wherever appropriate. There is an example of company contributions to local development : Krau 4 & Krau POM  Some fund donations to school facilities (eq. donation for schools), January to July 2104.  Water Tax Payments to Royal of Pahang for April 2014, paid through Maybank ( RM 444.58 ), dated 05 May 2014.

Lurah Bilut  Some of donation fund for communities surround (eq. for Ied Adha)  Education aspect, for example is donation for Senior High School at Lurah Bilut, dated June 21, 2014 Supporting for several mutual activities Status: Comply

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PRINCIPLE #7 Responsible development of new plantings

7.1 A comprehensive and participatory independent social and environmental assessment is undertaken prior to establishing new plantings or operations, or expanding existing ones, and the results incorporated into planning, management and operations. There is no new development or expansion of plantation within the area of FELDA Krau complex, only replanting activities. The second cycle of replanting starts from year 2006. Status: Not Applicable 7.2 Soil surveys and topographic information are used for site planning in the establishment of new plantings, and the results are incorporated into plans and operations. There is no new development or expansion of plantation within the area of FELDA Krau complex, only replanting activities. The second cycle of replanting starts from year 2006.

Status: Not Applicable 7.3 New plantings since November 2005, have not replaced primary forest or any area required to maintain or enhance one or more High Conservation Values. There is no new development or expansion of plantation within the area of FELDA Krau complex, only replanting activities. The second cycle of replanting starts from year 2006. Status: Not Applicable 7.4 Extensive planting on steep terrain, and/or on marginal and fragile soils, is avoided. There is no new development or expansion of plantation within the area of FELDA Krau complex, only replanting activities. The second cycle of replanting starts from year 2006. Status: Not Applicable 7.5 No new plantings are established on local peoples’ land without their free, prior and informed consent, dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions. There is no new development or expansion of plantation within the area of FELDA Krau complex, only replanting activities. The second cycle of replanting starts from year 2006. Status: Not Applicable 7.6 Local people are compensated for any agreed land acquisitions and relinquishment of rights, subject to their free, prior and informed consent and negotiated agreements. There is no new development or expansion of plantation within the area of FELDA Krau complex, only replanting activities. The second cycle of replanting starts from year 2006. Status: Not Applicable 7.7 Use of fire in the preparation of new plantings is avoided other than in specific situations, as identified in the ASEAN guidelines or other regional best practice. There is no new development or expansion of plantation within the area of FELDA Krau complex, only replanting activities. The second cycle of replanting starts from year 2006. Status: Not Applicable

PRINCIPLE #8 Commitment to continuous improvement in key areas of activity

8.1 Growers and millers regularly monitor and review their activities and develop and implement action plans that allow demonstrable continuous improvement in key operations. Major 8.1.5 Social impacts The company has been done of Social Impact Assessment. There was available report of Social Impact Assessment of Felda Golden SPO – 4006e Page 33 Prepared by Mutuagung Lestari for KRAU POM – Felda Global Ventures (FELDA)

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Ventures in Krau POM and FGVP Krau. These report is described of positive and negative impact by plantation and mill operational, plan for monitoring and manage those impacts. The components that will be manage and monitor are:  Access of community to facilities (road and recreational area)  Additional activities of community for welfare increasing (provide of market area and skill training)  Religion and cultural aspect (provide of mosque)  Access to education and health facility (provide of school and health facilities adjacent plantation area)  Transportation infrastructure, communication process and migrant influence (implies to income of local people)  Replanting program (positif and negative impacts) Status: Comply

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3.2. Summary of Assessment Report of Supply Chain

Clause (Module E) CPO Mills - Mass Balance Requirements

1 Documented Procedures 1.1 The facility shall have written procedures and/or work instructions to ensure the implementation of all the elements specified in these requirements. This shall include at minimum the following: a) Complete and up to date procedures covering the implementation of all the elements in these requirements. b) The name of the person having overall responsibility for and authority over the implementation of these requirements and compliance with all applicable requirements. This person shall be able to demonstrate awareness of the facilities procedures for the implementation of this standard. Mill management unit have Standard Operating Procedure For Mill RSPO Supply Chain Certification System (No. Doc: FGVPM-RSPO SCCS, Version 1.0 dated 1 December 2012). FPISB Kilang Sawit SOP Perkilangan untuk pematuhan Sistem Persijilan RSPO SCCS. The document contains of: 1. Management Functions & Job Descriptions: Mill Manager, Assistant Mill Manager, Weighbridge Clerk, Laboratory Analyzer, Traceability. 2. Mass Balance, Supply Chain Verification, Claim: MB Reporting of Certified CPO/PK. 3. Supply Chain Verification – FFB Delivery Plantation to Mill. 4. Supply Chain Verification – CPO/PK Delivery Mill to Customer. 5. Claim 6. Record Keeping. 7. Training.

Status: Comply as required 1.2 The facility shall have documented procedures for receiving and processing certified and non-certified FFBs.

Mill management unit have Standard Operating Procedure For Mill RSPO Supply Chain Certification System (No. Doc: FGVPM-RSPO SCCS, Version 1.0 dated 1 December 2012). Under MB Reporting of Certified CPO/PK, the procedure stated: Weighbridge Clerk Receiving Material must be contain information of:  Delivery Notes should be informed name of supply base under scope RSPO certification, stamp of RSPO Mass Balance must be available on document.  Entering of information on Delivery Notes to the FELDA computerized systems.  Ensuring of all information on FFB Delivery must be categorized Certified and Non-Certified All data records of FFB received should be reported through Reporting Spreadsheet by FELDA reporting systems. Status: Comply as required 2 Purchasing and goods in 2.1 The facility shall verify and document the volumes of certified and non-certified FFBs received. Certification scope of KRAU POM is FGVP Krau 02, FGVP Krau 04, FELDA Krau 1, FELDA Lembah Klau and FELDA Lurah Bilut. These supply bases will be claimed as Certified sources (if KRAU POM have certified). Based on Receiving Data …, KRAU POM also received of FFB from outgrowers, which is as Non-Certified sources. Sample document for FFB Delivery Note (goods in) are: FFB from Own Estate: 1. Gate Pass No: 01136729 (Penerimaan BTS FELDA/FPSB/FTP/FASSB)

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No. Kendaraan: MG5449 K.P. Pemandu: PC4292948 Nama Pemandu: Jabar Syarikat: FPSB KRAU 02 Tarikh Masuk: 29 August 2014 Masa Masuk: 16:44:20 Nota Hantaran/Arahan Angkut: 2735728 Purata Berat (BJR): 33 kg/kg, Sampel 1: 100 tandan Kadar Perahan G (dibagi): 19.80 % (OER approximate after grading) Buah Muda: 4 tandan; Busuk: 5 tandan; Kosong: 2 tandan; Mengkal: 2 tandan; Kotor: 5% 2. Weighbridge Slip Penjual: 5339-011—70 Nama Penjual: Ladang Krau 2 Nota Hantaran: 2735728 No. Lori: MG5449 Gross: 18.72 MT; Tare: 8.80 MT; Reject: 0.30 MT; Nett: 9.62 MT FFB from Smallholders Estate: 1. Gate Pass No: 01136731 (Penerimaan BTS FELDA/FPSB/FTP/FASSB) No. Kendaraan: WVK6240 K.P. Pemandu: 950423145543 Nama Pemandu: Pian Syarikat: LEMBAH KLAU Tarikh Masuk: 29 August 2014 Masa Masuk: 16:52:38 Nota Hantaran/Arahan Angkut: 1314 Purata Berat: 21 kg/tandan; Sampel 2: 50 tandan Buah Muda: 1 tandan; Mengkal: 1 tandan; Kotor: 1%; Panjang: 3tandan 2. Weighbridge Slip No Pass: 01136731 No Akuan Terima: A00035088 Penjual: 9045-003-01 Nama Penjual: FELDA LEMBAH KLAU KP Peneroka: 670213065442 Nama Peneroka: Normaziana BT Deraman Nota Hantaran: 1314 No. Lori: WVK6240 KPG: 20.74 % (OER approximate after grading) Harga/Tan: 414.80 Jumlah Nilai: 555.83 Gross: 04.48 MT; Tare: 03.12 MT; Reject: 00.02 MT; Nett: 01.34 MT FFB from Outgrowers (BTS Luar) 1. Gate Pass No: 02026260 (Penerimaan BTS Luar) No. Kendaraan: SA6150P K.P. Pemandu: 830525065335

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Nama Pemandu: Mohd Shahrul Bin Hamdan Syarikat: LIM CHEE FUN Tarikh Masuk: 31 August 2014 Masa Masuk: 10:39:00 Nota Hantaran/Arahan Angkut: 4962 Buah Muda: - tandan; Mengkal: 9 tandan; Kotor: 1%; 2. No Siri: 4962 (LIM CHEE FUN) No Kod Kilang: 8103 3. Weighbridge Slip No Pass: 02026260 No Akuan Terima: A00035167 Penjual: 8103 SKB: 6014206 Nama Penjual: LIM CHEE FUN KP Peneroka: - Nama Peneroka: - No Lesen MPOB: 318722901000 Nota Hantaran: 4962 No. Lori: SA6150P Purata Berat (BJR): 25 kg/tandan; Sampel 3: all tandan KPG: 20.15 (OER approximate after grading) Harga/Tan: 390.91 Jumlah Nilai: 863.91 Gross: 04.18 MT; Tare: 01.97 MT; Reject: 00.00 MT; Nett: 02.21 MT Status: Comply as required 2.2 The facility shall inform the CB immediately if there is a projected overproduction. KRAU POM has not been certified, it will verify during Surveillance audit. Status: Not Applicable 3 Record keeping 3.1 The facility shall maintain accurate, complete, up-to-date and accessible records and reports covering all aspects of these requirements. All data records are kept in FELDA Computerizing System. KRAU POM have not certified, all these supply chain requirements will be implement after KRAU POM getting Certificate.

Status: Comply as required 3.2 Retention times for all records and reports shall be at least five (5) years. Under the Standard Operating Procedure For Mill RSPO Supply Chain Certification System (No. Doc: FGVPM-RSPO SCCS, Version 1.0 dated 1 December 2012), all documents related to RSPO SCCS Requirements are kept into filing system for 10 years. All data records are kept in FELDA Computerize System. KRAU POM have not certified, all these supply chain requirements will be implement after KRAU POM getting Certified. Status: Comply as required

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3.3 (a) The facility shall record and balance all receipts of RSPO certified FFB and deliveries of RSPO certified CPO, PKO and palm kernel meal on a three-monthly basis. (b) All volumes of palm oil and palm kernel oil that are delivered are deducted from the material accounting system according to conversion ratios stated by RSPO. (c) The facility can only deliver Mass Balance sales from a positive stock. However, a facility is allowed to sell short. All data records are kept in FELDA Computerizing System. KRAU POM have not certified, all these supply chain requirements will be implement after KRAU POM getting Certificate. However, KRAU POM has Standard Operating Procedure For Mill RSPO Supply Chain Certification System (No. Doc: FGVPM-RSPO SCCS, Version 1.0 dated 1 December 2012), whereas its requirements has been clearly mention in this document. Status: Comply as required 3.4 The following trade names should be used and specified in relevant documents, e.g. purchase and sales contracts, e.g. *product name*/MB or Mass Balance. The supply chain model used should be clearly indicated. KRAU POM have not been certified, this clause are not available for the mean time until this POM are certified. Anyhow, this management unit should be prepared for the document sampling to ensure this requirements (Modul-E: CPO Mills) will be implemented, after getting certificate. Alihantar BTS Bersijil dan BTS Tidak Bersijil (Basic Delivery of FFB Certified and Non-Certified) Documents of Certified FFB Delivery are:  Manual Procedure of Controlling on Delivery FFB In and Out.  Separation of FFB Certified and Non-Certified at Loading Ramp.  Delivery Note must be including: RSPO Certified FFB stamp, Name and Address of Mill, Type of Goods, Date, Quantity, Approval Stamp by Mill Manager.  Valid of RSPO Certificate. Mill Spreadsheet “Sustainability Verification Information Spreadsheet” for Certified Product. Status: Comply as required 3.5 In cases where a mill outsources activities to an independent palm kernel crush, the crush still falls under the responsibility of the mill and does not need to be separately certified. The mill has to ensure that the crush is covered through a signed and enforceable agreement. No Kernel Crushing Plant within KRAU POM Complex.

Status: Not Applicable 4 Sales and goods out 4.1 The facility shall ensure that all sales invoices issued for RSPO palm oil delivered include the following information: (a) The name and address of the buyer (b) The date on which the invoice was issued (c) A description of the product, including the applicable supply chain model (Segregated or Mass Balance) (d) The quantity of the product delivered (e) Reference to related transport documentation Sample of CPO delivery: a) To: 5200 – FELDA IFFCO SDN BHD, PORT , SELANGOR b) Date: 20 August 2014 c) Penghantaran CPO (CPO Delivery): Temperature (48º C); FFA (4.26 %); Dobi (2.67 %); Dirt (0.019 %); Nett (41.84 MT) – SC model is not settle yet because KRAU POM not certified yet. d) Quantity: 41.84 MT (nett)

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e) Reference doc: Contract No: 41513514; Bil. Hantaran: H00001594/2014; Arahan Angkut (DO): D04020014080992

Sample of Kernel delivery: a) To: 40CD – FKP – PANDAMARAN, KLANG, SELANGOR b) Date: 31 August 2014 c) Penghantaran Intisawit (Kernel Delivery): Moisture (5.04 %); Dirt (4.100 %); Nett (43.65 MT) – SC model is not settle yet because KRAU POM not certified yet. d) Quantity: 43.65 MT (nett) Reference doc: Contract No: F21506915; Bil. Hantaran: L00000403/2014; Arahan Angkut (DO): D04020314080704 Status: Comply as required 5 Training 5.1 The facility shell specifies and provides the training for all staff as required to implement the requirements of the Supply Chain Certification Systems. Supply Chain Training have been provided by FELDA PALM Industries Sdn. Bhd. through Training Workshop of SCCS, RSPO and ISCC on 25th June 2014. Personal to be involved on this training are: Krau POM Mill Administration (Mr. Muh. Zuki bin Abdul Kadir) and Laboratory Analyzer (Mr. Azmi bin Daud). Internal Training of RSPO Supply Chain by Krau POM was conducted on 7th July 2014 and participated by 5 persons. WB Clerk (Mr. Muhammad bin Said); Mill Supervisor (Mr. Mohd. Fairus bin Roslan); Laboratory Analyzer (Mr. Ahmad Ridzuan bin Selamat); Security Head (Mmohd. Rozydi bin Sobri); MQI (Mr. Sheikh Mohd. Jefri bin Kamarudin). Status: Comply as required 6 Claims 6.1 The facility shall only make claims regarding the use of or support of RSPO certified oil palm products that are in compliance with the RSPO Rules for Communications and Claims. Mill management unit have Standard Operating Procedure For Mill RSPO Supply Chain Certification System (No. Doc: FGVPM-RSPO SCCS, Version 1.0 dated 1 December 2012). Under Claim, the procedure stated: The Mill may only claim / sell a number of products (CPO / PK) from FFB certified processing, which is produced from the estate that is involved with the RSPO certification Mill, through the Mass Balance method. Status: Comply as required

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3.3. Conformity Checklist of Certificate and Logo Use.

1. Evidence of permission or approval certificate and logo from Certification Body which X or√ submitted by Client ST-2 Will be verified after the management unit certified

Status: Not applicable

2. Implementation of certificate and logo used by Client comply with size and type (shape) X or√ against Guideline of Logo Use ST-2 Will be verified after the management unit certified

Status: Not applicable 3. Implementation of Certificate and Logo is not used on product X or√

ST-2 Will be verified after the management unit certified

Status: Not applicable 4. Controlling of Certificate and Logo, including withdrawing inappropriate logo. X or√

ST-2 Will be verified after the management unit certified

Status: Not applicable

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3.4. Summary of RSPO Partial Certification.

Summary: At the beginning of 2014, Felda Global Ventures Plantations (FGVP), owns and manages 72 palm oil mills in Malaysia. The time bound plan below highlights both certified units and planning for certification of uncertified units. Effective end Q3, 2014, Felda will be closing one palm oil mill operations. The time bound plan below confirms the status of 71 mills and will be reviewed again during the 1st surveillance assessment.

As of this assessment, Felda has successfully certified 28 mills and have had another 26 mills undergo main assessments between Q2-Q4, 2014. The remaining 17 mills will be audited as per the time bound plan under 1.9 above. 2.1 There is compliance with all applicable local, national and ratified international laws and X or √ regulations. Felda has and follows the “GSA” Group Settlement Act, where all land under FELDA will abide by local and national land laws. I.e. Compliance with legal documents such as the “Land Rules Applicable to the States in Malaysia” and relevant acts.

The group has a common human resource policy which is also cascaded to all operating units. There are several handbooks and guides, shared with employees. Examples: “Syarat-syarat Perkhidmatan Petugas Bergaji Bulan Syarikat Kumpulan” which went into effect on 1st January 2007, explains to employees their benefits and company rules. The “Syarat-syarat Perkhidmatan Pekerja Operasi √ Ladang” was established in 1st May 2010. There is also the “Perjanjian Bersama Kesatuan Perkerja- perkerja Felda Plantations” and “Surat Perjanjian Kontrak Perkerjaan Perkerja Asing”, which are used to educate and inform employees of their rights and responsibilities.

Issues relating to employees is all operating units are monitored on a monthly basis and reported through the monthly Head of Department meetings. Monitoring is also done via e-mail and official communications with the respective departments. For example: PSQM monitors HR related matters with the help of the internal audit team and reviewed by the PSQM Head of Department. Status: Compliance

2.2 The right to use the land can be demonstrated, and is not legitimately contested by local X or √ communities with demonstrable rights. Legal ownership of land and its land use is available for all operating units and demonstrated through √ the respective land titles. For the FELDA settlers program, land titled is covered under the “GSA” Act. Status: Compliance

6.3 There is a mutually agreed and documented system for dealing with complaints and X or √ grievances, which is implemented and accepted by all parties. There is a standard complaints procedure that is communicated to all facilities and locations. The procedure, “Prosedur Menangani Aduan dan Rungutan”, No. Document: ML.1A/L2-PR4(0), is made √ available from the head office and cascaded to all operating units. Status: Compliance

6.4 Any negotiations concerning compensation for loss of legal or customary rights are dealt with through a documented system that enables indigenous peoples, local communities and X or √ other stakeholders to express their views through their own representative institutions. FELDA has a Social Officer based in each regional office throughout the nation, where existing scheme/settlers can share their views and concerns. On a monthly basis, the reports from the Social Officers are shared and reviewed through the monthly Head of Department meetings. Quarterly there √ is a “Mesyuarat Jawatan Kuasa Minyak Sawit Mampan” known as the Sustainability Steering Committee Meeting, where both FELDA and FGVP Head of Departments review on-going matters. The PSQM department will monitor any issues and reviewed with the Head of Department. Status: Compliance

7.3 New plantings since November 2005, have not replaced primary forest or any area required to X or √ maintain or enhance one or more High Conservation Values. FGVP Malaysia through its subsidiary in Indonesia, FGVP Kalimantan, has acquired land. The 2 √ locations are: SPO – 4006e Page 41 Prepared by Mutuagung Lestari for KRAU POM – Felda Global Ventures (FELDA)

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1) PT Citra Niaga Perkasa (PT CNP) – 24th February 2011 2) PT Temila Agro Abadi (PT TAA) – 9th July 2013

Both locations have undergone the RSPO New Planting Procedure (NPP): 1) PT Citra Niaga Perkasa (CNP) – 14th January 2013, approximately 14,000 Ha. 2) PT Temila Agro Abadi (TAA) – 30th July 2014, approximately 8,000 Ha.

No negative comments received during the NPP public notification.

In Malaysia, FELDA has land banks that were acquired since the 1950s and has steadily increased their land bank over the past 50 years. These land banks were initial cleared and prepared for crops such as rubber, timber, palm oil and cocoa. As the demand for palm oil increased in the 1990s and 2000s, most of these cleared areas have been converted to palm oil. Given that all these areas were cleared and either prepared or planted with another crop over the past 50 years, the NPP procedure will not apply.

For newly acquired land in Malaysia or any part of the world under FELDA, the NPP procedures will apply. Status: Compliance

7.5 No new plantings are established on local peoples’ land without their free, prior and informed consent, dealt with through a documented system that enables indigenous peoples, local X or √ communities and other stakeholders to express their views through their own representative institutions. For new land acquisitions, the RSPO NPP procedure is followed where the company will complete the required HCV and EIA assessments.

In October 2013, FELDA acquired a mature plantation in Kinabatangan, Sabah. The plantation, √ known as Pontian United Plantation Sdn Bhd, was established in 1977 year, totaling approximately 14,500Ha. Given that this is a matured plantation, the company has year marked the operations for RSPO certification 2017. Status: Compliance

7.6 Local people are compensated for any agreed land acquisitions and relinquishment of rights, X or √ subject to their free, prior and informed consent and negotiated agreements. Any new land acquisition will be done by mean of a participatory process with local villages and land √ owners. No complaints received during this audit process. Status: Compliance

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3.5 Identification of Findings, Corrective Action, Observations, Opportunity for Improvement and Noteworthy Positive Components.

3.5.1 Identification of Findings, Corrective Actions and Observations at ST2 Assessment

CAR Time Closing Ref Std Finding Area Grade Corrective Action Observation Status No Limits Date 2014.01 Major Records of requests and Krau Major Prior to The management unit Root cause: Closed 11 May 1.1.1 responses. POM, Certificat shall record and Applications received have not been 2015 Document observation and Krau 4 e Issued maintained all the recorded full by the person in charge interview with the estate staff & Lurah incoming and the known there were available log Bilut response letter Corrective action: in and log out book (Buku Rekod consistently. Records all received letter, responses letter Surat Terima & Buku Rekod and also record the respondent responses Surat Keluar). Based on verification is incoming letters Preventive action: kept and filing, there is not To select one responsible officer to monitor record evidence of the incoming all enquire and responses consistently letter response by the unit. For example letter from Pejabat Auditor conclusion: Tenaga Kerja Raub (Nomor: There are available letter from Manager of JTKRB10/1.1 (1), dated 23 July Krau POM but did not enough evidences 2012 regarding Bus of book of log in and log out book (Buku Transportation for the Students. Rekod Surat Terima & Buku Rekod Surat Keluar) in Krau POM, Krau 4 & Lurah Bilut

11 May 2015 The management of KRAU POM has been sent the evidences of log in and log out book (Buku Rekod Permohonan & Buku Rekod Maklum Balas) and Instruction by Estate Manager in related to management of Records of requests and responses.

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CAR Time Closing Ref Std Finding Area Grade Corrective Action Observation Status No Limits Date Based on the corrective evidence, the non conformity is closed. 2014.02 Major Protection of watercourses, PM00D Major Prior to Management unit shall Root cause: Closed 11 May 4.4.1 maintaining and restoring Block 36 Certificat provide evidence of Nothing was done for the buffer zone 2015 appropriate riparian buffer KRAU 04 e Issued watercourses protection zones or before replanting. along natural waterways Corrective action: During field observation at within estates is Management must provide appropriate riverside of Bilut River, PM00D appropriately. evidence to measures on Block 36 FGV Krau 04, it was riverbank protection on farms identified that riparian buffer zone as conservation area has Preventive action: clearly eroded by water flow. In 1) Estate management will ensure addition, based on interview adequate signage installed and all the staff, revealed that agrochemical employees, contractors and the settlers usage (circle spraying) is were briefed and understanding regarding permitted. However, there is still border demarcation and buffer zone area. lack of evidence that riparian 2) Estate management will maintain border zones is maintained signs and poles at least every two months appropriately to protect of water to keep in good condition. course and avoid of soil erosion. Auditor conclusion: The evidende of watercourses protection along natural waterways within estates is not yet available.

11 May 2015 1. The management of KRAU POM has been sent the evidences of sign board installed for buffer zone and memorandum from Estate Manager in relation protection for river buffer zone (to avoid of chemist application and

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CAR Time Closing Ref Std Finding Area Grade Corrective Action Observation Status No Limits Date illegal activities). 2. There was shown evidences of Water Management Plan (Pelan Pengurusan Air) till December 2014. Based on the corrective evidences, the non conformity is closed. 2014.03 Minor Evidence of water Mill and Minor Surveil- Must prepare a Root cause: Closed 8 Jan 2015 4.4.7 management plans. Estates lance1 management plan and Water management plan is properly Water management plan has not action plan for residential implemented. been effectively implemented areas / factories and Corrective action: farms. The management must prepare a management plan and action plan for the Evidence required: housing estates / factories and farms. 1) Need to provide: i) Management Plan Preventive action: which contains the Letters of appointment of officials following items: Item, responsible for monitoring water Impact, and Action. management.

ii) Need to provide water Auditor conclusion: management action plan The management of Krau POM had been containing the following sent an evidence of management plan and items: action plan for residential areas / factories Activity, Action Required, and estates. Based on the corrective evidence, the non conformity is closed. 2014.04 Major Annual medical surveillance Lurah Major Prior to Management unit shall Root cause: Closed 8 Jan 2015 4.6.5 for pesticide operators. Bilut Certificat provide evidence of Operator pesticides do not receive annual Based on interviews at one of e Issued annual medical medical supervision (Annual Medical Lurah Bilut settlers land and surveillance for all surveillance) document review, it was pesticide operators. identified that all pesticide Corrective action:

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CAR Time Closing Ref Std Finding Area Grade Corrective Action Observation Status No Limits Date operators (sprayers) have not Managers need to ensure pesticide getting annual medical operator receives an annual medical surveillance. supervision (Annual Medical surveillance)

Preventive action: OSH Officer appointed must ensure that all employees who perform work that is exposed to chemical hazards and should get an annual medical supervision.

Auditor conclusion: The management of Lurah Bilut estate had been sent an evidence of annual medical surveillance for all pesticide operators (certificate of fitness by dr. Halim bin Ishaq – Sulaiman Clinic, Pahang Darul Makmur, dated 8 December 2014). Based on the corrective evidence, the non conformity is closed. 2014.05 Minor Evidence of chemical residues Krau POM Minor Surveil- Palm Oil Mill unit shall be Root cause: Closed 11 May 4.6.9 in CPO testing lance1 provide an evidence of There is sufficient evidence of chemical with 2015 Inadequate evidence that chemical residues in residues in CPO has been tested. Observa chemical residues in CPO CPO testing, as tion product have been tested by requested and Corrective action: Krau POM. conducted by the buyers. Unit Factory management shall provide evidence of chemical residues in test CPO, Refinery maintenance as requested. unit let to provide evidence of the remains Preventive action: of a chemical in the test Manager or Assistant Manager of the CPO, as requested. factory should ensure chemical residue testing conducted on CPO and must

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CAR Time Closing Ref Std Finding Area Grade Corrective Action Observation Status No Limits Date appoint a person who is answerable to send samples for testing process and follow up the results of the test.

Auditor conclusion: The management unit had sent evidence of letter of assignment for CPO testing officer but evidence of chemical residues chemical residues tested of CPO product is not yet available.

11 May 2015 There is an evidence of Letter from Management Representative of Krau POM to Nabbir Laboratory for analyze the sample of CPO from Krau POM. Based on that corrective evidence, the non conformity is closed with observation. 2014.06 Major Evidence of documented Felda Major Prior to Proof Required: Root cause: Closed 11 May 4.7.1 Occupational Safety Health /FTP Certificat 1. Plan of occupational Occupational safety and health plan and 2015 (OSH) plan. Lurah e Issued safety and health. the meeting did not effectively implemented OSH Plan has not been Bilut 2. Minutes of the meeting OSH effectively implemented at of the OSH needs to run certain areas e.g: two or three months. Corrective action: 3. Letter of appointment The management must provide a) OHS Plan was not adequately of officials responsible for occupational health and safety plan and documented in Felda Lurah Bilut monitoring occupational ensure that meetings are conducted Estate. safety and health issues. periodically OSH two at three months.

b) OHS meetings were not Preventive action: conducted at stated frequency Letter of appointment of officials interval of three months. Latest responsible for monitoring occupational

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CAR Time Closing Ref Std Finding Area Grade Corrective Action Observation Status No Limits Date OHS meeting at Felda Lurah safety and health issues. Bilut was dated April 2014. Auditor conclusion: The management of Krau POM had been sent an evidence of but OHS Minutes Meeting after April 2014 is not yet available.

11 May 2015 a. The management of FTP Lurah Bilut was sent the evidence of OHS Plan (Januari till December 2014). b. There were available evidences of OHS meeting at Felda Lurah Bilut on 6 Juni 2014 (attached Minutes of Meeting and Pictures of activities). Based on those corrective evidence, the non conformity is Closed 2014.07 Major Training programmed Mill & Major Prior to Evidence required: Root cause: Closed 11 May 4.8.1 (appropriate to the scale of the Estates Certificat The management did not ensure that there 2015 organization). e Issued followed Training Plan accordingly. In 1) Training plans were there in all 1) Training Plan is addition, training records and assessing the audit locations but it have not updated accordingly the effectiveness of training exercises been updated accordingly 2) Training records for all designed for all No on-site audit. exercises designed. 2) Training records for all the 3) Evaluation of the Corrective action: planned training was not effectiveness of training. The management must ensure that there available 4) The appointment of followed Training Plan accordingly. In officers responsible for addition, training records and assessing 3) Training effectiveness the training. the effectiveness of training exercises evaluation was not available for designed for all No on-site audit. all management units sampled

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CAR Time Closing Ref Std Finding Area Grade Corrective Action Observation Status No Limits Date Preventive action: The management must issue a letter of appointment for officials responsible for training.)

Auditor conclusion: The management unit only sent an evidence of Training Plan but there is not yet an evidence of Training Records and Training effectiveness evaluation.

11 May 2015 The management unit has sent an evidences : 1. Training Schedule for employees and contractors (January till December 2014). 2. Attendant List of training for operators and other employees in 11 July 2014 and 24 November 2014. 3. Evaluation results of training for plantation employees, contractors and peasants (peneroka). 4. Assignment Letter by Krau Mill Manager for officer responsible for the training. Based on those corrective evidence, the non conformity is Closed 2014.08 Minor Implementation of disposal Lurah Minor Surveil- Management unit shall Root cause: Observa 5.3.2 waste (schedule waste) Bilut lance1 be implement of all Vice Estate management, lack of evidence tion During interviews with spraying identified wastes are that agrochemical waste disposed of or team and relevant management disposed or kept in stored in an appropriate manner and also

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CAR Time Closing Ref Std Finding Area Grade Corrective Action Observation Status No Limits Date representative, there still lack of appropriate manner to undertaken. evidence that agrochemical avoid of environmental waste are disposed or kept in pollution. Corrective action: appropriate manner and well The management must carry out recycling implemented. bins pesticides are used safely (all pesticide containers)

Preventive action: OSH Officer appointed must ensure that all toxic barrels that have been used rinsed 3X and recorded.

Auditor conclusion: The evidence that agrochemical waste are disposed or kept in appropriate manner and well implemented is not yet available.

11 May 2011 The Unit Management of Lurah Bilut was sent the evidence of management plan for disposal waste (schedule waste). Based on that corrective evidence, the non conformity is Observation. 2014.09 Minor Monitoring of renewable Mill Minor Surveil- What evidence is Root cause: Closed 8 Jan 5.4.1 energy use per tan of CPO or lance1 required: The factory did not formulate and 2015 palm product in the mill was The management unit summarize data on the use of renewable computed and summarized in has to show evidence energy for every ton of crude palm oil or a trend chart. and provide a summary palm plant products and flowcharts. The summary and data flow and data flow charts of charts of renewable energy use renewable energy use Corrective action: per ton of crude palm oil or palm per ton of crude palm oil The mill need formulate and summarize

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CAR Time Closing Ref Std Finding Area Grade Corrective Action Observation Status No Limits Date plant products and flowcharts are or palm plant products data on the use of renewable energy for not yet available and flowcharts. every tonnes of crude palm oil or palm plant products and flowcharts.

Preventive action: Monitoring by the factory management through monthly meetings factory and periodic review by Internal Audit RSPO Auditor conclusion.

Auditor conclusion: The management unit had been sent evidence of shell & fibre record used and data flow charts of renewable energy use per tan of CPO or palm product in the mill. 2014.10 Minor SIA Assessment has been Krau Minor Surveil- The management unit Root cause: Closed 8 Jan 2015 6.1.2 done with the participation of POM, lance1 shall gathered data from Unit does not collect data management affected parties Krau 4 & external or (sending out questionnaires SIA) mainly Management unit has been done Lurah representative from external stakeholders. of Social Impact Assessment by Bilut stakeholder. gathering data from Corrective action: stakeholders. Based on sampling Unit should collect data management of questioner has showed it data (sending out questionnaires SIA) mainly only gathered from internal from external stakeholders. stakeholder and lack of evidence about data from external Preventive action: stakeholder (e.q. community Monitoring by the management of farms member or smallholder and factories through monthly meetings peasants). farms and factories as well as periodic review by the Audit RSPO.

Auditor conclusion:

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CAR Time Closing Ref Std Finding Area Grade Corrective Action Observation Status No Limits Date The management unit had sent evidence sample of questioner for gathered data from external stakeholder. 2014.11 Minor A timetable with Krau Minor Surveil- The management unit Root cause: Closed 8 Jan 2015 6.1.3 responsibilities for mitigation POM, lance1 shall providing the action The management does not provide a and monitoring Krau 4 & plan for mitigating and blueprint for mitigation and monitoring all The report of Social Impact Lurah monitoring all impacts the effects (positive and negative) mainly Assessment (SIA) had been Bilut (both positive and external stakeholders. established for the estates (Krau negative) based on 4 & Lurah Bilut) including the participation of external Corrective action: Krau POM. These document stakeholder did not 1. Review Plan for evaluation Mitigation explain about evaluating and limited to internal SIA for Stakeholders within and outside providing the action plan for stakeholder. stakeholders and assign each mitigating and monitoring but it employee is responsible for the not adequate to that all impacts implementation of the plan mitigation (both positive and negative) are 2. Convene meetings revised actions identified based on participation taken by mitigation plan. of external stakeholder. Preventive action: Monitoring by the management of Estate fields through monthly meetings and periodic review by the Audit RSPO.)

Auditor conclusion: The management unit had sent evidence of Plan for evaluation Mitigation SIA for Stakeholders. Based on the evidences givens by unit management, the non conformity is Closed.

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CAR Time Closing Ref Std Finding Area Grade Corrective Action Observation Status No Limits Date 2014.12 Minor Labour laws, union Lurah Minor Surveil- The management unit Root cause: Closed 11 May 6.5.2 agreements or direct contracts Bilut lance1 shall provide the All Estate workers and contractor 2015 of employment detailing documentation of legal agreements held by the workers payments and conditions of agreements or direct themselves, and most of it had been lost employment are available in contracts with the foreign and damaged. the language understood by workers. the workers Corrective action: Make the description back to the Estate Field observation and interview workers and contractor employees who result has showed that any have their employment agreement before foreign worker in Lurah Bliut signing it and redistribute copies of the estate. Based on document contract to any person. verification, the estate cannot show the legal agreements or Preventive action: direct contracts with the foreign The Estate management and program will workers. For example the foreign save a copy of a contract worker who workers with passport AS enters begin this year so it is not damaged 844581 and AS 888400. and missing

Auditor conclusion: The evidence is not yet provided

11 May 2015 The management of Lurah Bilut Estate has been sent the evidences of contract for foreign worker (legal agreements or direct contracts with the foreign workers and Felda). Based on the evidences givens by unit management, the non conformity is Closed.

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3.5.2 Opportunity for Improvement

No Ref.Std Description

1 Minor Management unit has opportunity to improve that practices of erosion control on slope area before replanting are based on slope level map. 4.3.1 2 Minor Management unit has an option to classify of riparian area as fragile soil based on soil map to reduce a negative environmental impact. 4.3.5 3 Major Management unit has opportunity to encourage related agency within water sampling analysis into natural waterways both estates and mill are given in timely 4.4.3 manner. 4 SCCS Mill management unit has improved the training for key persons who involved in Supply Chain system directly. 5.1 5 Minor There were questioners as a tool that the company used for gathering information related to provide the social impact assessment. This information shall gather 6.1.2 from external stakeholder; e.q. community member or smallholder peasants did not limited to internal stakeholder. The questioners should be completed be more easily evaluating and providing the summary for action plan. 6 Minor The company (mill and estates) had contributed to local community (settlers) related to sustainable development for examples: providing the transportation for 6.11.1 student to school, the incentive fees for fatherless child, the incentive fees for celebrating day after the end of fasting month. For ensuring the contribution appropriate to the local communities, it should be the company identify of priority need for the effectively the company contributions.

3.5.3 Noteworthy Positive Components

No Ref.Std Description (Penjelasan)

1 - Management and staff commitment was evident 2 - Felda scheme was found to be successful in improving sustainable development for rural settlers

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3.6 Summary of Arising Issues from Public, Management and Auditor Response

Public Issues Management Responses Auditor Responses (Institution/ NGO/Community) Woman Associate (Gerakan Persatuan Wanita). Impact of Felda activities in palm oil plantation are: Positive comment and management The management unit is implementing  Donation from company to support workshop for woman activities (workshop for tailoring activities) will maintained it. regarding the gender issues  Communities income is more increase than before Refer to criterion 6.8  Access for education facilities is more easy than before  The company already build a new facilities (kindergarten school building, clinic, etc) Community members/Smallholders Positive comment and management The management unit is implementing The company program and activities in palm oil plantation is affect of positive impact to community will maintained good relationship with regarding the community issues surround, for example: local community and strive for more. Refer to criterion 6.10 and 6.11  Access for local communities to work.  Smallholder program was effect to increase of community income.  Donation from company to support of sport activities for the younger.  Free health facility services for communities in anniversary of National Health in every year.  There are not issues in relation of land occupation and negative impact of plantation and mill operation. Worker Union Positive comment and management The management unit is implementing  The company was prepare the facilities for the workers will maintained it. regarding the worker union issues  There is no dispute between company and the workers Refer to criterion 6.6  Annual meeting of the worker union in every year and the company supported for the venue. Gender Union Positive comment and management The management unit is implementing  The company was supported for the woman employee right , eg. Leave period in prenatal period will maintained it. regarding the gender issues  There is no complaining from woman employee in relation of woman right in their work activities. Refer to criterion 6.8 Local NGO and government Institutions Untill the last day of the assessment, The auditor team will verified all of the there was no information and issue issue raised in each assessment. raise from NGO and Government Institutions

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4.0 CERTIFIED ORGANISATION'S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Sign-off of Assessment Findings

Hereunder sign by management representative from inspected company to acknowledge a field assessment and agree for all content explained in this assessment report, included of non-compliance findings.

Signed on behalf of:

Felda Global Ventures - FELDA Mutuagung Lestari Management Representative Lead Auditor

TMohan

En. Norazam Abdul Hameed Mohan Thavarajah 13 May 2015 13 May 2015

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Appendix 1. List of Stakeholder Contacted in the RSPO Certification Process

Form of Response Institution/NGO/Co Date of No Address Phone/Email Commini mmunity Contact Yes No cation 1 Malaysian CropLife 11 (1st Floor), Jalan SS & Public Health 26/8, Taman Mayang Jaya, Email 28/8/2014 

Association (MCPA) Selangor Darul Ehsan 2 All Women’s Action 85, Jalan 21/1, Sea Park, Email 28/8/2014  Society (AWAM) 46300 3 Pertubuhan 63 Jalan SS3/53, Kelana Tindakan Wanita Jaya, 47300 Petaling Jaya Email 28/8/2014 

Islam PERTIWI 4 Women's Aid PO Box 493, Jalan , Organisation - 46760 Petaling Jaya Email 28/8/2014  Pertubuhan Pertolongan Wanita 5 Tenaganita Sdn Bhd 38, Jalan Gasing 46000 Petaling Jaya, Email 28/8/2014  Malaysia 6 Pesticide Action P.O. Box 1170, , Network Asia and 10850 Malaysia Email 28/8/2014  the Pacific (PAN AP) 7 BCSDM - Business Suite 803, MBE Pavilion Council for KL, Lot No. B1.03.00, Level Sustainable B1, Pavilion KL, 168, Jalan Email 28/8/2014  Development in Bukit Bintang, 55100 Kuala Malaysia Lumpur. 8 Sustainable B-2114 Tingkat Satu, Jalan Development Merpati 25300 Kuantan, Email 28/8/2014  Network Malaysia Pahang (SUSDEN) 9 Centre for 17 Jalan SS2/53, 47300 Environment, Petaling Jaya Technology and Email 28/8/2014  Development, Malaysia – CETDEM 10 Environmental 30-3, Jalan PJU 5/16, Management and Dataran Sunway, Kota Research Damansara, 47810 Email 28/8/2014  Association of Petaling Jaya, Selangor Malaysia (ENSEARCH) 11 Environmental No. 60, Jalan 21/35, 46300 Protection Society Petaling Jaya, Selangor, Email 28/8/2014  Malaysia (EPSM) Malaysia 12 Friends of the Earth, Sahabat Alam Malaysia Malaysia (Headquarters) Email 28/8/2014  No. 258 Jalan Air Itam 10460 Penang,

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Malaysia 13 Global Environment Global Environment Centre Centre 2nd Floor, Wisma Hing, 78, Jalan SS2/72 Email 28/8/2014  47300 Petaling Jaya, Selangor 14 Institute of Pejabat Sekretariat IRIM, Foresters, Malaysia Jabatan Perhutanan (IRIM) Semenanjung Malaysia, Email 28/8/2014 

Jalan Sultan Salahuddin, 50660 Kuala Lumpur 15 Malaysian No. 41, Lorong Environmental Burhanuddin Helmi NGOs – MENGO 11,Taman Tun Dr. Email 28/8/2014  Ismail,60000 Kuala Lumpur, Malaysia. 16 Treat Every No.72, Jalan SS4/10, Environment Special 47301, Petaling Jaya, Email 28/8/2014  Sdn Bhd. (TrEES) Selangor Darul Ehsan, Malaysia 17 Center for Orang P.O. Box 3052, Subang Asli Concerns Jaya, Malaysia Email 28/8/2014  COAC 18 JERIT - Jaringan 72b, Jalan Reko, Taman Sri Rakyat Tertindas - Langat Email 28/8/2014  Coalition of the Selangor, Malaysia Oppressed People 43000 19 JUST - International International Movement for Movement for a Just a Just World, JKR, 1258, World Jalan Telok Off Jalan Email 28/8/2014  Gasing, P.O. Box 288. Petaling Jaya, Selangor. 20 National Council of No. 17, Jalan 1/48A, Welfare & Social Bandar Baru Sentul, 51000 Development Kuala Lumpur Email 28/8/2014  Malaysia - NCWSDM 21 National Union of No 2, Jalan Templer, 46000 Plantation Workers Petaling Jaya, Selangor Email 28/8/2014  (NUPW) 22 SUARAM - Suara 433A, Jalan 5/46, Gasing Email 28/8/2014  Rakyat Malaysia Indah, 46000 Petaling Jaya 23 SUHAKAM - 11th Floor, Menara TH National Human Perdana, Jalan Sultan Rights Society - Ismail, 50250 Kuala Email 28/8/2014  Persatuan Lumpur. Kebangsaan Hak Asasi Manusia 24 United Nations Wisma UN, Block C Development Kompleks Pejabat Email 28/8/2014  Programme - UNDP Damansara, Jalan Dungun, Malaysia Damansara Heights, 50490

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Kuala Lumpur 25 UNION - AMESU No. 29-3, Jalan USJ 1/1A 47620 Email 28/8/2014  Selangor Darul Ehsan 26 Malaysian 3A06-3A07, Block A, Pusat Employers Dagangan Phileo Federation - MEF Damansara II, 15 Jalan Email 28/8/2014  16/11, Off Jalan Damansara, 46350 Petaling Jaya 27 Transparency 23 Jalan Pantai 9/7 International - 46000 Petaling Jaya, Email 28/8/2014  Malaysian Chapter Selangor, Malaysia. 28 Future in Our Hands No 10, Jalan T.S. Society Manikawasagam, 10 Email 28/8/2014 √ Taman Menara Maju, 41200 Klang Selangor 29 EcoKnights EcoKnights, 41, Lorong Burhanuddin Helmi 11, Email 28/8/2014  Taman Tun Dr. Ismail, 60000 Kuala Lumpur, 30 Amnesty D-2-33A, 8 Avenue Jalan International Sungai Jernih 8/1, Section Email 28/8/2014  Malaysia 8, 46050, Petaling Jaya, Selangor. 31 Malaysian National Wisma Medivet, 8, Jalan Animal Welfare Tun Razak, 50400 Kuala Email 28/8/2014  Foundation - Lumpur, Malaysia MNAWF 32 TRAFFIC - the Unit 3-2, 1st Floor, Jalan wildlife trade SS23/11, Taman SEA, Email 28/8/2014  monitoring network 47400 Petaling Jaya, Selangor, Malaysia. 33 Malaysian Nature JKR 641, Jalan Kelantan, Society (MNS) Bukit Persekutuan, 50480 Email 28/8/2014  Kuala Lumpur Kuala Lumpur 34 Proforest - South Suite #303 East Asia Regional MBE Desa Sri Hartamas Email 28/8/2014  Office No. 30G, Jalan 25/70 A 50480 Kuala Lumpur 35 Wetlands 3A31 Block A, Kelana International Centre Point, Jalan Email 28/8/2014  (Malaysia) SS7/19, 47301 Petaling Jaya 36 Wild Asia Sdn Bhd Upper Penthouse, Wisma RKT, No 2 Jalan Raja Email 28/8/2014  Abdullah, 50300 Kuala Lumpur 37 Gender Committee Ladang Krau 4 Interview 02/9/2014  & Worker Union 38 Local people at Focus Ladang Krau 4 03/9/2014  Ladang Krau 04 Group

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Discussio n 39 Local community (Smallholder) & Lurah Bilut Interview 04/9/2014  Workers

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Appendix 2. Assessment Program

DATE 2 – 5 SEPT 2014 AUDITOR PROGRAM PROCESSES / CLAUSES TO BE AUDITED MT WR OKT RM Tuesday, 2 September 2014 08.00 - 09.00 Opening Meeting √ √ √ √

09.00 - 13.00 Field observation to KRAU Palm Oil Mil WWTP, Mill Operational, Safety and Health, Supply Chain, Hazardous Waste Management 13.00 – 14.00 BREAK 14.00 – 17.00 Field observation to KRAU Palm Oil Mil √ √ √ √ WWTP, Mill Operational, Safety and Health, Supply Chain, Hazardous Waste Management Wednesday, 3 September 2014 08.00 - 10.00 Stakeholders consultation to Nearest village andd community leader, labour √ √ √ √ union, gender committee.

Stakeholders consultation to Related Government Institution (District Government and local NGO)

10.00 - 13.00 Field Observation to FGVP KRAU 04 Estate  Manuring, Spraying, Harvesting, Best Agricultural Practices  Worker Welfare (payments, complaint mechanism, etc.)  Legal operational boundary and Conservation Area  Worker facilities (housing, health clinic, clean water, etc)  Land Fire facilities, Storage, etc.  Hazardous Waste Material management 13.00 – 14.00 BREAK 14.00 – 17.00 Continue Field Observation to: √ √ √ √

Field Observation to FGVP KRAU 04 Estate  Manuring, Spraying, Harvesting, Best Agricultural Practices  Worker Welfare (payments, complaint mechanism, etc.)  Legal operational boundary and Conservation Area  Worker facilities (housing, health clinic, clean water, etc)  Land Fire facilities, Storage, etc. Hazardous Waste Material management Thursday, 4 September 2014 08.00 – 13.00 Field Observation to: √ √ √ √ FELDA LURAH BILUT Estate  Manuring, Spraying, Harvesting, Best Agricultural Practices  Worker Welfare (payments, complaint mechanism, etc.)  Legal operational boundary and Conservation Area  Worker facilities (housing, health clinic, clean water, etc)  Land Fire facilities, Storage, etc..  Hazardous Waste Material management 13.00 – 14.00 BREAK 14.00 – 17.00 Completion of checklist / Audit finding preparation √ √ √ √ Friday, 5 September 2014 08.00 – 12.30  Closing Meeting √ √ √ √

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