PF824 MSPO Public Summary Report Revision 1 (Feb 2020) MALAYSIAN SUSTAINABLE PALM OIL - RECERTIFICATION ASSESSMENT Public Summary Report LEMBAGA MINYAK SAWIT MALAYSIA (MPOB) CAWANGAN BETONG Client company Address: MPOB Cawangan Betong 1st & 2nd Floor, Sublot (56) Lot 1992, Block 9, Batu Api Land District 95700 Bandar Baru Betong, Phase 3 Sarawak, Malaysia Certification Unit: MPOB Sustainable Palm Oil Cluster (SPOC Q10) Betong & Spaoh Location of Certification Unit: Betong, Sarawak, Malaysia Report prepared by: Muhamad Naqiuddin Mazeli (Lead Auditor) Report Number: 3091822 & 3277573 Assessment Conducted by: BSI Services Malaysia, (DSM Accreditation Number: MSPO 09112018 CB 12) Suite 29.01 Level 29 The Gardens North Tower, Mid Valley City Lingkaran Syed Putra, 59200 Kuala Lumpur Tel +60392129638 Fax +60392129639 www.bsigroup.com Page 1 of 47 PF824 MSPO Public Summary Report Revision 1 (Feb 2020) TABLE OF CONTENTS Page No Section 1: Executive Summary ........................................................................................ 3 1.1 Organizational Information and Contact Person ........................................................ 3 1.2 Certification Information ......................................................................................... 3 1.3 Location of Certification Unit ................................................................................... 3 1.4 Certified Area ........................................................................................................ 4 1.5 Plantings & Cycle ................................................................................................... 4 1.6 Certified Tonnage of FFB ........................................................................................ 4 1.7 Uncertified Tonnage of FFB ..................................................................................... 4 1.8 Certified Tonnage .................................................................................................. 5 1.9 Actual Sold Volume (CPO)....................................................................................... 5 1.10 Actual Sold Volume (PK) ......................................................................................... 5 Section 2: Assessment Process ........................................................................................ 6 2.1 BSI Assessment Team ................................................................................................ 7 2.2 Assessment Plan ........................................................................................................ 9 Section 3: Assessment Findings ..................................................................................... 11 3.1 Details of audit results ................................................................................................... 11 3.2 Details of Nonconformities and Opportunity for improvement ........................................... 11 3.3 Status of Nonconformities Previously Identified and OFI .................................................. 11 3.4 Summary of the Nonconformities and Status................................................................... 14 3.5 Issues Raised by Stakeholders ....................................................................................... 14 Section 4: Assessment Conclusion and Recommendation ................................................. 15 Appendix A: Summary of the findings by Principles and Criteria ........................................ 16 Appendix B: List of Stakeholders Contacted .................................................................... 29 Appendix C: Smallholder Member Details ........................................................................ 30 Appendix D: Location and Field Map………………………………………………………………………………45 Appendix E: List of Abbreviations ................................................................................... 47 Page 2 of 47 PF824 MSPO Public Summary Report Revision 1 (Feb 2020) Section 1: Executive Summary 1.1 Organizational Information and Contact Person Company Name Malaysian Palm Oil Board (MPOB) Cawangan Betong MPOB License No. Expiry Date Mill/Estate N/A N/A Address MPOB Cawangan Betong, 1st & 2nd Floor, Sublot (56), Lot 1992, Block 9, Batu Api Land District, 95700 Bandar Baru Betong, Phase 3, Sarawak, Malaysia Certification Unit Sustainable Palm Oil Cluster Betong & Spaoh (Q10) Contact Person Name Mike Tomson ak Victive Website - E-mail [email protected] Telephone 013 - 8176145/ 083 - 447001 Facsimile - 1.2 Certification Information Certificate Number MSPO 716837 Issue Date 28/10/2020 Expiry date 27/10/2025 Scope of Certification Production of Sustainable Oil Palm Fruits Standard MS 2530-Part 2:2013 - General Principles for Independent Smallholders Stage 1 Date 19-21/10/2014 (SPOC Saratok) Stage 2 / Initial Assessment Visit Date (IAV) 03/09/2015 (SPOC Saratok) Continuous Assessment Visit Date (CAV) 1 20-22/12/2016 (SPOC Saratok) Continuous Assessment Visit Date (CAV) 2 14-16/08/2017 (SPOC Saratok) Continuous Assessment Visit Date (CAV) 3 01-03/10/2018 (SPOC Saratok) Continuous Assessment Visit Date (CAV) 4 05-08/08/2019 Recertification Assessment Visit Date (RAV) Remote: 06-07/08/2020; Onsite: 01-04/09/2020 Other Certifications Certificate Standard(s) Certificate Issued by Expiry Date Number N/A 1.3 Location of Certification Unit Name of the Certification Unit Site Address GPS Reference of the site office (Palm Oil Mill/ Estate/ Smallholder/ Longitude Latitude Independent Smallholder) Page 3 of 47 PF824 MSPO Public Summary Report Revision 1 (Feb 2020) MPOB Sustainable Palm Oil Cluster MPOB Cawangan Betong, 1st & 2nd 111.535417 1.405361 (SPOC Q10) Betong & Spaoh Floor, Sublot (56), Lot 1992, Block 9, Batu Api Land District, 95700 Bandar Baru Betong, Phase 3, Sarawak, Malaysia 1.4 Certified Area Total Planted Infrastructure (Mature + HCV Total Area % of Estate & Other Immature) (ha) (ha) Planted (ha) (ha) MPOB Sustainable Palm Oil Cluster (SPOC Q10) Betong & 2,288.11 - - 2,288.11 100 Spaoh TOTAL 2,288.11 - - 2,288.11 1.5 Plantings & Cycle Age (Years) Estate Mature** Immature 0 - 3 4 - 10 11 - 20 21 - 25 26 - 30 N/A Total (ha) 1.6 Certified Tonnage of FFB Tonnage / year Estate Projected Actual production Projected production from last audit Jan - Dec 2019 or last for next 12 months 12 months (Jan - Dec 2020) MPOB Sustainable Palm Oil Cluster - - 27,457.32 MT (SPOC Q10) Betong/Spaoh Total - - 27,457.32 MT 1.7 Uncertified Tonnage of FFB Tonnage / year Estate Estimated Actual Forecast (N/A) (N/A) (N/A) N/A Page 4 of 47 PF824 MSPO Public Summary Report Revision 1 (Feb 2020) Total 1.8 Certified Tonnage Estimated Actual Forecast (N/A) (N/A) (N/A) Mill Capacity: FFB FFB FFB N/A N/A N/A N/A CPO (OER: %) CPO (OER: %) CPO (OER: %) SCC Model: N/A N/A N/A N/A PK (KER: %) PK (KER: %) PK (KER: %) N/A N/A N/A 1.9 Actual Sold Volume (CPO) Other Schemes Certified CPO (MT) MSPO Certified Conventional Total ISCC RSPO N/A 1.10 Actual Sold Volume (PK) Other Schemes Certified PK (MT) MSPO Certified Conventional Total ISCC RSPO N/A Page 5 of 47 PF824 MSPO Public Summary Report Revision 1 (Feb 2020) Section 2: Assessment Process BSI is a leading global provider of management systems assessment and certification, with more than 80,000 certified locations and clients in over 190 countries. BSI Standards is the UK’s National Standards Body. BSI provides independent, third-party certification of management systems. Assessment Methodology, Programme, Site Visits The onsite assessment was conducted on 01-04/09/2020 and remote audit on 06-07/08/2020. The audit programme is included as 2.2 Assessment Plan. The approach to the audit was to treat the SPOC Q10 Betong & Spaoh as a MSPO Certification Unit. A range of environmental and social factors were covered. This includes consideration of topography, palm age, proximity to areas with HBVs, declared conservation areas and local communities. The methodology for collection of objective evidence included physical site inspections, observation of tasks and processes, interviews of staff, workers and their families and external stakeholders, review of documentation and monitoring data. MS 2530-2:2013 were used to guide the collection of information to assess compliance. The comments made by external stakeholders were also taken into account in the assessment. The estates or smallholders sample were determined based on formula S = r√n where n is the number of estates while when applicable, the smallholders sample were determined following the MSPO Certification Requirement. The sampling of smallholders were based on the formula (r√n); where r is the risk factor (may defers 1, 1.5 and 2 depending on risk), where n is total number of group members. The risk factor we using is 1 because the risk is low and SPOC was manage by MPOB, there are total 35 smallholder been sampling during this audit The sampled smallholder listed in Appendix C. Prior to on-site assessment, a global stakeholder consultation has been conducted through notification dated on 27 July 2020 via website as following: https://www.bsigroup.com/globalassets/localfiles/en-my/mspo/Public%20Notification/2020/09-01-mspo-public- notification_recertification_spoc-q10-betong--spaoh_english.pdf Emails also sent to selected stakeholders among NGOs, local authorities and interested parties on 3/9/2020. No feedbacks or comments received from the global stakeholder consultation and email consultation except for on-site consultation as reported under section