Roundtable on Sustainable Palm Oil Public Summary Report Report no.: RA_ 82450214020 Certification assessment against the RSPO Principles & Criteria Malaysian National Interpretation 2014 & RSPO Supply Chain Certific ation Standard 2014 Sime Darby Plantation SOU 10 Bukit Puteri Sungai Koyan, 27650 Raub, Pahang Darul Makmur, Malaysia Date of assessment: 12 – 14 May 2016 Report prepared by: Carol Ng Siew Theng (RSPO Lead Auditor) Certification decision by: Abdul Qohar (Director of TUV Rheinland Indonesia) Certification Body: PT TUV Rheinland Indonesia Menara Karya, 10 th Floor Jl. H.R. Rasuna Said Block X-5 Kav.1-2 Jakarta 12950,Indonesia Tel: +62 21 57944579 Fax: +62 21 57944575 www.tuv.com/id TABLE OF CONTENTS 1.0 SCOPE OF CERTIFICATION ASSESSMENT ....................................................... 3 1.1 National Interpretation Used 3 1.2 Type of Assessment 3 1.3 Details of previous certificate 3 1.4 Location and Maps 3 1.5 Description of Supply Base 6 1.7 Other Achievements and Certifications Held 7 1.8 Area of Plantation (Total, Planted and Mature) 7 1.9 Organisational Information / Contact Person 8 1.10 Description of Company History, Socio-economy & Environment 8 1.11 Time Bound Plan for Other Management Units 9 1.12 Compliance to Rules for Partial Certification 10 1.13 Plan for certification of associated smallholders 11 1.14 Approximate Tonnages Certified 11 1.15 Approval for Certification 11 1.16 Date of Certificate Issued and Scope of Certificate 11 2.0 ASSESSMENT PROCESS ...................................................................................12 2.1 Certification Body 12 2.2 Qualifications of Lead Assessor and Assessment Team 12 2.3 Assessment Methodology 14 2.4 Stakeholder Consultation and Stakeholders Contacted 16 2.5 Date of Next Surveillance Visit 16 3.0 ASSESSMENT FINDINGS ....................................................................................16 3.1 Summary of Findings 16 3.2 Status of Previously Identified Non-conformities 52 3.3 Identified Non-conformances, Corrective Actions Taken and Auditors Conclusions 55 3.4 Noteworthy Positive Components 71 3.5 Issues Raised by Stakeholders and Findings Pertaining to Issues 71 3.6 Acknowledgements of Internal Responsibility and Formal Sign-Off by Client 77 APPENDICES .............................................................................................................78 Appendix 1: Details of Certificate 78 Appendix 2: Certification Audit Plan 79 Appendix 3: List of Abbreviations 85 Appendix 4: List of Stakeholders Interviewed and Contacted 87 Appendix 5: Observations and Opportunities for Improvement 89 RSPO Re-certification Assessment Report Sime Darby Plantation SOU 10: Bukit Puteri Raub, Pahang, Malaysia Page 3 of 90 1.0 SCOPE OF CERTIFICATION ASSESSMENT 1.1 National Interpretation Used The operations of the palm oil mill(s) and its supply base of FFB were assessed against the Malaysia National Interpretation (MY-NI) year 2014 of the RSPO Principles & Criteria and the RSPO Supply Chain Certification Standard 2014. The palm oil mill applies the Module E – CPO Mills: Mass Balance supply chain model. 1.2 Type of Assessment This re-certification assessment was carried out on 1 mill and 1 estate under Bukit Puteri Palm Oil Mill owned by Sime Darby Plantation Sdn. Bhd. The date of first certification of this unit was July 07, 2011. This unit was initially certified by Control Union Certification and subsequent annual surveillance audits from year 2012 to 2015 were conducted by TUV Rheinland Malaysia Sdn. Bhd. 1.3 Details of previous certificate The details of previous RSPO certification of Sime Darby Plantation Sdn Bhd, SOU 10 Bukit Puteri Palm Oil Mill are as per the table below Table 1: Previous RSPO Certification details of Bukit Puteri Palm Oil Mill RSPO Membership no.: 1-0008-04-000-00 RSPO Certificate no.: 824 502 14020 Date of first RSPO certificate & 07/07/2011 valid until 06/07/2016 valid ity: Date of certification audit: May 11 to 18, 2009 Date of previous surveillance au- 27-29 April 2015 dit: Date of previous RSPO certificate 18502206 001, same validity as current certificate, issued by & validity (if applicable): Control Union. Certificate was revised due to transfer of RPSO CB approval from TUV Rheinland Malaysia Sdn. Bhd. to PT TUV Rheinland Indonesia - accredited 6 June 2014 Previous CPO tonnages claimed: 10,309 tonnes Previous PK tonnages claimed: 2,133 tonnes Revised CPO tonnages claimed: 11,702 tonnes Revised PK tonnages claimed: 2,546 tonnes 1.4 Location and Maps Table 2: GPS locations for all estates and mills included in certification assessment Name of GPS locations Location mill / estate Latitude Longtitude Bukit Puteri Palm Mill Location: Kilang Kelapa Sawit Bukit Puteri, 04°12’09.7” 101°51’45.5” Oil Mill K/B 31, Sungai Koyan, 27650 Raub, Pahang Darul Makmur, Malaysia Bukit Puteri Estate Sungai Koyan, 27650 Raub, Pahang Darul Makmur, 04°12' 90” 101°51' 45” Malaysia QMF: RSPO-007a-13(Rev.0) RSPO Re-certification Assessment Report Sime Darby Plantation SOU 10: Bukit Puteri Raub, Pahang, Malaysia Page 4 of 90 Figure 1: General location of Bukit Puteri Palm Oil Mill in Pahang, Peninsular Ma- laysia QMF: RSPO-007a-13(Rev.0) RSPO Re-certification Assessment Report Sime Darby Plantation SOU 10: Bukit Puteri Raub, Pahang, Malaysia Page 5 of 90 Bukit Puteri Palm Oil Mill Figure 1: Bukti Puteri Estate Map QMF: RSPO-007a-13(Rev.0) RSPO Re-certification Assessment Report Sime Darby Plantation SOU 10: Bukit Puteri Raub, Pahang, Malaysia Page 6 of 90 1.5 Description of Supply Base Table 3: FFB Supply Information for Bukit Puteri Palm Oil Mill for FY2014/15 and FY2015/16 up until April 2016 FFB received in FFB received in FY FY2015/16 up until 2014/15 FFB Contributors April 2016 Tonnes % Tonnes % Company owned estates (within audit scope): Bukit Puteri estate 43,175.99 93.58 32,982.55 95.60 Diverted FFB from RSPO certified company owned estates (outside audit scope): Mentakab Estate 269.08 0.58 - - Sungai Mai estate 1,050.24 2.28 1,433.63 4.16 Sub-total 1,319.32 2.86 1,433.63 4.16 Non- certified / other sources*: Bumi Technopreneur Sdn. 479.03 1.04 85.84 0.25 Bhd. Golden Horse Plantations 208.28 0.45 - - Sdn Bhd Perniagaan Sinaran Mewah 954.09 2.07 - - Sub-total 1,641.40 3.56 85.84 0.25 TOTAL 46,136.71 100.00 34,502.02 100.00 * Last supply from non-certified source was received on July 2015 for 85.84 MT. Since then, the mill no longer receives crop from non-certified sources Table 4: Certified tonnages claimed, certified tonnages purchased or sold, total and projected CPO and PK production from SOU 10 Bukit Puteri Mill Amount (MT) FFB CPO PK Total Actual Production for FY2014/15* 46,136.71 9,855.39 2,192.19 Conversion Rate for FY2014/15* - OER: 21.38 KER: 4.75 Actual Certified Production for FY2014/15* 43,175.99 9,236.70 2,047.79 Projected output for FY 2015/16** 61,373.81 13,224.34 2,884.57 Projected conversion rate for FY2015/16** - OER: 21.55 KER: 4.70 Projected Certified Production for 54,174 11,702 2,546 FY2015/16 (Certified tonnages claimed)** Certified tonnages sold*** 2731.08 * From monthly crop report for June 2015 ** As per Mill MPLAN 2015/16 total cost report *** As per eTrace report of Bukit Puteri Mill, CPO sold as ‘Mass Balance’ (MB) in FY 2014/15 was 2250 tonnes and CPO sold as ‘Mass Balance’ (MB) in FY 2015/16 was 481.08 tonnes QMF: RSPO-007a-13(Rev.0) RSPO Re-certification Assessment Report Sime Darby Plantation SOU 10: Bukit Puteri Raub, Pahang, Malaysia Page 7 of 90 1.6 Dates of Plantings and Replanting Cycles The company follows a replanting cycle of 25 years. Information on the dates of plantings are as per the table below. Table 5: Year of plantings of company estate supplying to Bukit Puteri Mill Year of Plantings Age profile (years) Hectarage 2013 - 2016 0 – 3 803.07 2008 - 2012 4 – 8 702.71 2002 – 2007 9 -14 0 1998 - 2001 15 - 18 1180.10 1991 – 1997 19 - 25 243.44 < 1991 25 870.77 TOTAL 3800.09 Table 6: Planned oil palm replanting activities for SOU 10 Sime Darby Plantation Sdn.Bhd Year Total planned replanting area (ha) 2013/2014 350.18 2014/2015 252.04 2015/2016 0.00 2016/2017 388.83 2017/2018 481.94 2018/2019 378.72 2019/2020 380.24 2020/2021 275.87 2021/2022 388.71 1.7 Other Achievements and Certifications Held Table 7: Details of other certifications or awards held by SOU 10: Bukit Puteri Name of Certification Standard / Award Certification Body / Date mill / estate achieved Awarder Achieved Bukit Puteri Estate Award of Appreciation for participation as Pahang Department of Oc- 2014 mentor for Mentor-Mentee Program OSH cupational Safety & Health Master Plan 2010 – 2015 Year 2014 Bukit Puteri Estate Bronze Award for an Average 2014 OSH Malaysian Society for Oc- 2014 performance cupational Safety & Health 1.8 Area of Plantation (Total, Planted and Mature) Table 8: Oil Palm Planted Area Summary, FFB Production and Average yield/ha for Bukit Puteri Estate Oil Palm Mature Immature FFB Total area Average Estate Name Planted area (Production) (Non-production) Production* (ha) yield/ ha* (ha) area (ha) area (ha) (tonnes) Bukit Puteri 3,875.80 3,800.09 2997.02 803.07 43,175.99 15.61 TOTAL 3,875.80 3,800.09 2997.02 803.07 43,175.99 15.61 *Period for Financial Year 2015/2016 where mature production area was only 2709.95 ha QMF: RSPO-007a-13(Rev.0) RSPO Re-certification Assessment Report Sime Darby Plantation SOU 10: Bukit Puteri Raub, Pahang, Malaysia Page 8 of 90 Table 9: Land use data for Bukit Puteri Estate HCV/ Land used for other purposes (ha) Oil Palm Estate Total area Potential Swamp/ Planted Ar- Security Name (ha) HCV areas* Nursery Roads Buildings unplanta- ea (ha) trenches (ha) ble area Bukit Puteri 3,875.80 3,800.09 6.20 4.06 76.28 4.71 23.64 18.61 TOTAL 3,875.80 3,800.09 6.20 4.06 76.28 4.71 23.64 18.61 1.9 Organisational Information / Contact Person Contacts details of the company are as follows: Company Name: Sime Darby Plantation Sdn.