Report No.: R9314/18-1 Kuala Lumpur Kepong Berhad, Tuan Mee Grouping Page 1 of 72 ReKuala-certification Lumpur (Transfer CB)Kepong Berhad RSPO Membership No: 1-0014-04-000-00 PLANTATION MANAGEMENT UNIT Tuan Mee Grouping Sungai Buloh, Selangor Darul Ehsan, Malaysia INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W) Report No.: R9314/18-1 Kuala Lumpur Kepong Berhad, Tuan Mee Grouping Page 2 of 72 Re-certification (Transfer CB) RE-CERTIFICATION ASSESSMENT PUBLIC SUMMARY REPORT KUALA LUMPUR KEPONG BERHAD RSPO Membership No: 1-0014-04-000-00 PLANTATION MANAGEMENT UNIT Tuan Mee Grouping Sungai Buloh, Selangor, Malaysia Certificate No: RSPO 931488 Issue Date (Re-Cert): 10 September 2018 Expiry date: 09 September 2023 Initial Certification Issued date: 10 September 2013 Assessment Type Assessment Dates Re-Certification Assessment (Transfer CB) 7, 10 –11 May 2018 Annual Surveillance Assessment (ASA-01) Annual Surveillance Assessment (ASA-02) Annual Surveillance Assessment (ASA-03) Annual Surveillance Assessment (ASA-04) Intertek Certification International Sdn Bhd D-28-3, Level 28, Menara Suezcap 1, No. 2, Jalan Kerinchi, Gerbang Kerinchi Lestari, 59200 Kuala Lumpur, Malaysia. Tel: +00 (603) 7931 0032 Fax: +00 (603) 7931 0419 Email: [email protected] Website: www.intertek.com INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W) Report No.: R9314/18-1 Kuala Lumpur Kepong Berhad, Tuan Mee Grouping Page 3 of 72 Re-certification (Transfer CB) TABLE OF CONTENTS Section Content Page No 1.0 SCOPE OF ASSESSMENT 4 1.1 Introduction 4 1.2 Location (address, GPS and map) mill, estates and hectarage 4 1.3 Description of supply base (fruit sources) 4 1.4 Year of plantings and cycle 5 1.5 Summary of Land Use – Conservation and HCV Areas 6 1.6 Other certifications held and Use of RSPO Trademarks 6 1.7 Organizational information/contact person 6 1.8 Tonnages Verified for Certification 7 1.9 Time Bound Plan and Multiple Management Units 8 1.10 Abbreviations Used 9 2.0 ASSESSMENT PROCESS 10 2.1 Assessment Methodology, Plan & Site Visits 10 2.2 Date of next scheduled visit 10 2.3 Qualifications of the Lead Assessor and Assessment Team 10 2.4 Certification Body 10 2.5 Process of Stakeholder consultation 11-12 3.0 ASSESSMENT FINDINGS 13 3.1 Summary of findings 13-48 3.2 Status of Identified Noncompliance and Corrective Actions, Observations 49-52 and Identified Positive Elements 3.3 Summary of Feedback Received from Stakeholders and Findings 53 4.0 ASSESSMENT CONCLUSION AND RECOMMENDATION 54 4.1 Acknowledgement of Internal Responsibility and Confirmation of Assessment 54 Findings 4.2 Intertek RSPO Certification Details for the PMU 55 APPENDICES Appendix A Qualifications of the Lead Assessor and Assessment Team 56 Appendix B Assessment Plan 57-58 Appendix C Maps of location – Mill and Estates 59-62 Appendix D Photographs of Assessment findings at the PMU 63 Appendix E Time Bound Plan for Other Plantation Management Units 64-72 INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W) Report No.: R9314/18-1 Kuala Lumpur Kepong Berhad, Tuan Mee Grouping Page 4 of 72 Re-certification (Transfer CB) 1.0 SCOPE OF ASSESSMENT 1.1 Introduction This Re-certification / Transfer Assessment was conducted on the Plantation Management Unit (PMU) Tuan Mee Grouping of Kuala Lumpur Kepong Berhad (hereafter abbreviated as KLK), on 7, 10–11 May 2018, to assess the organization’s operations of the mill and its supply bases for compliance against the RSPO Principles and Criteria (Apr 2013), Malaysian National Interpretation (MYNI 2014) and the RSPO Supply Chain Certification Standard (Jun 2017) for the Palm Oil Mill. The plantation management unit (PMU) or management unit is equivalent to a certification unit as defined in the RSPO Certification Systems Document. Each PMU consists of one mill and its supply bases which are made up of estates owned and/or managed by KLK. 1.2 Location (address, GPS and map) of palm oil mill and estates The Tuan Mee Grouping consists of one (1) palm oil mill, namely Tuan Mee Palm Oil Mill and one (1) estate only as indicated in Table 1 below, which includes the addresses and GPS locations of the mill and estate. The location maps are provided in Appendix C. Table 1: Address of Palm Oil Mill, Estate and GPS Location GPS Reference Name Address Latitude Longitude KLK Tuan Mee Batu 24, Jalan Kuala Selangor-Kepong, Palm Oil Mill N 3°15’54.2’’ E 101°27’49.5’’ 47000 Sg. Buloh, Selangor D.E., Malaysia (Capacity: 22 MT/hour) Batu 24, Jalan Kuala Selangor-Kepong, Tuan Mee Estate N 3°16’7.4’’ E 101°27’20.5’’ 47000 Sg. Buloh, Selangor D.E., Malaysia 1.3 Description of supply base (fruit sources) The supply base, i.e. FFB sources to the POM at Tuan Mee Grouping PMU are currently from the abovementioned estate of this PMU, other certified KLK Groupings estates and Outside Crop Producers (OCP). The FFB from the PMU estate and other certified KLK Groupings estates are certified FFB. The FFB from OCP are considered as non- certified FFB. Details of the planted hectarage for the FFB supply to the PMU are as shown in Table 2 below. Table 2: Estate Area Summary Area Summary (ha) Area Summary (ha) – Current Estate (Year 2016) (Jan to Dec 2017) Certified Area Planted Area Certified Area Planted Area Tuan Mee Estate 2,686 2,427 2,678 2,411 Total: 2,686 2,427 2,678 2,411 Note: This Assessment covered the overall land use for oil palm plantation areas, and the identified Conservation / unplantable areas including HCV (if any) marked out at the estate. INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W) Report No.: R9314/18-1 Kuala Lumpur Kepong Berhad, Tuan Mee Grouping Page 5 of 72 Re-certification (Transfer CB) 1.4 Summary of plantings and cycle The age profile of the planted oil palms is as shown in Table 3. Table 3: Age Profile of Planted Oil Palms (Year 2017) Year of Cycle of Mature OP (ha) Immature OP (ha) Total (ha) Estate Name Planting Planting – Above 3 years – 3 years & below Tuan Mee Estate 1990 1st 30 30 1992 1st 164 164 1993 1st 21 21 1994 1st 113 113 1995 1st 23 23 1997 1st 62 62 1998 1st 79 79 2000 1st 248 248 2001 1st 145 145 2002 1st 134 134 2003 1st 19 19 2004 1st 209 209 2005 1st 205 205 2006 1st 144 144 2007 1st 124 124 2008 1st 91 91 2010 1st 82 82 2011 1st 40 40 2012 1st 76 76 2016 2nd 106 106 2017 2nd 141 141 2018 2nd 155 155 Total: 2009 402 2411 INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W) Report No.: R9314/18-1 Kuala Lumpur Kepong Berhad, Tuan Mee Grouping Page 6 of 72 Re-certification (Transfer CB) 1.5 Summary of Land Use - Conservation and HCV Areas The summary of Conservation and HCV Areas as identified in the PMU during this assessment is as shown in Table 4 below: Table 4: Conservation and HCV Areas # Statement of Land Use (Ha) Year 2016 Year 2017 Hectarage – Ha Hectarage – Ha 1 Planted Area (ha) – Oil Palm 2,427 2,411 - Mature (Production) 2,180 2,009 - Immature (Non-Production) 247 402 2 Conservation Area (ha) - comprising buffer zones along small streams, hilly areas, 8.1 8.1 swampy and unplantable areas 3 HCV Area (ha) - comprising buffer zones near river riparian, forest 0 0 reserves, water catchments, burial & religious sites 1.6 Other certifications held and Use of RSPO Trademarks KLK-Tuan Mee Grouping is also certified to the International Sustainability and Carbon Certification (ISCC). The RSPO’s trademarks and logo are not being used by the PMU audited. Instructions for use were provided and acknowledged by the PMU through a signed Memorandum of commitment agreeing to adhere to the latest “RSPO Rules on Communications & Claims” during the assessment. 1.7 Organizational information / Contact Person At Head Office: Mr. Sin Chuan Eng Sustainability Head Kuala Lumpur Kepong Berhad Wisma Taiko, 1, Jalan S.P. Seenivasagam, 30000 Ipoh, Perak Darul Ridzuan, Malaysia Tel: +605-240 8000, 241 7844 Fax: +605-240 8114 Email: [email protected] At KLK Tuan Mee Grouping - PMU: Mr. How Yong Chian Palm Oil Mill Manager Kuala Lumpur Kepong Berhad Tel: +603-6038 3245 Fax: +603-6038 4786 Email: [email protected] INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W) Report No.: R9314/18-1 Kuala Lumpur Kepong Berhad, Tuan Mee Grouping Page 7 of 72 Re-certification (Transfer CB) 1.8 Tonnages Verified for Certification 1.8.1 The breakdown of all the suppliers and their tonnages of FFB supplied to the POM at Tuan Mee Grouping based on the reporting period for current assessment are as shown in Table 5 below: Table 5: Tonnages Verified for Certification (Jan to Dec 2017) FFB Processed Main Receiving RSPO P&C # Estate /Supplier (MT) Palm Oil Mill Certification By CB A PMU Estate: 1. Tuan Mee Estate 50,204.12 Tuan Mee Oil Mill Intertek B Other KLK Certified Estates: 1 Sg. Gapi 6,640.89 Tanjung Malim POM CuC 2 Changkat Asa 407.16 Tanjung Malim POM CuC 3 Kombok 1,185.14 Jeram Padang POM CuC 4 Pedas 351.46 Jeram Padang POM CuC 5 Kerling 94.02 Tanjung Malim POM CuC Sub-Total Other certified Estates: 8,678.67 Total Certified: 58,882.79 C External / Other Suppliers: 1 Shalimar (Euro Asia) 4,642.15 2 Berjunrtai (Euro Asia) 5,204.55 3 Sg. Rambai 19,108.53 4 Landtha 14,478.86 5 Poh Lim 709.84 Sub-total from OCP: Non-certified: 44,143.93 1.8.2 Total annual tonnages of FFB supplied from the supply base to Tuan Mee Grouping POM during the previous period, current assessment and projected period are as shown in Table 6 below: Table 6: Annual Tonnages of FFB FFB Processed in FFB Processed in FFB for Processing Estate / Supplier Year 2016 Year 2017 in Year 2018 - Actual - Actual - Projected MT % MT % MT % Tuan Mee Grouping 43,720.85 63.42