RSPO SURVEILLANCE AUDIT REPORT · RSPO SURVEILLANCE AUDIT REPORT ... 2.1 Assessment methodology...

RSPO SURVEILLANCE AUDIT REPORT SIME DARBY – SOU 34 / KOMPLEX PEKAKA, OCTOBER 2013

RSPO STANDARD (in current version)

agroVet GmbH

Head Quarter:

Königsbrunnerstraße 8

A-2202 Enzersfeld

Austria

www.agrovet.at

RSPO Audit Report Sime Darby SOU 34, Version Dec. 2013

2

Enzersfeld |02.12.2013

TABLE OF CONTENTS

1. Scope of the Certification Assessment 1.1 General Comments

1.2 Location (map and GPS), mill and/or hectarage statement

1.3 Description of supply base (fruit sources)

1.4 Date of plantings and cycle

1.5 Other certifications held (ISO etc)

1.6 Organizational information / contact person

1.7 Tonnages certified

2. Assessment Process 2.1 Assessment methodology (program, site visits, etc.)

2.2 Date of next surveillance audit

2.3 Lead Assessor / assessment team

2.4 Certification Body

2.5 Outline of how stakeholder consultation was managed

3. Assessment Findings 3.1 Summary of findings (template required) – available within 60 days

3.2 Identified Non-Conformances and Noteworthy positive comments

3.3 Issues raised by stakeholders

4. Certified organization’s acknowledgement of internal responsibility 4.1 Formal sign-off of assessment findings

5. Annexes 5.1 Report Confirmations (certification department and client)

5.2 Divers copies, records, checklists, pictures and documents

5.3 Abbreviations


3


1. Scope of the Certification Assessment

1.1 General Comments

1.1.1 Structure of Sime Darby Plantation (information source: http://www.simedarbyplantation.com )

Sime Darby Plantation is the plantation and agri-business arm of the Sime Darby Group, representing one of the five core Divisions of the Group.

The Division is involved in oil palm cultivation and downstream activities, agribusiness and food, as well as Research & Development (R&D).

The merger of Sime Darby Berhad, Golden Hope Plantations Berhad and Kumpulan Guthrie Berhad (completed on 27 November 2007)

establishes Sime Darby Plantation as one of the world’s largest palm oil producer, producing about 2.4 million tonnes or 6% of the world’s crude

palm oil (CPO) output annually.

The Division spans across the Peninsular, Sabah and Sarawak in Malaysia, Kalimantan, Sumatera and Sulawesi in Indonesia with landbank

totaling 878,797 hectares, of which 522,489 hectares have been planted with oil palm. The operations involve the management of 201 estates

and 58 Strategic Operating Units (SOUs)* in both countries.

*An SOU refers to a mill and the one to four estates surrounding it.

http://www.simedarbyplantation.com/


4


1.1.2 RSPO Membership of Sime Darby Plantation

RSPO Membership and Commitment of Sime Darby is formally proven by public announcement and availability of information on RSPO websit,

see the following link (Status February 2013): http://www.rspo.org/en/member/29

http://www.rspo.org/en/member/29


5


1.1.3 Corporate Information Sime Darby Plantations

1.1.3.1 Organisation Chart


6


1.1.3.2 Geographical Coverage

http://www.simedarbyplantation.com/images/articles/map_corp_info_big.jpg


7


1.1.3.3 World wide activities

Sime Darby Plantation has also been granted by the Government of Liberia with a 63-year concession to develop 220,000 hectares of

land into oil palm and rubber plantations. Spread across 4 counties, namely Grand Cape Mount, Bomi, Bong, and Gbarpolu.

As an integrated plantation company, Sime Darby Plantation is involved in the full spectrum of the palm oil value chain. The Division’s

downstream operations is represented in 14 countries namely Malaysia, Singapore, Indonesia, Thailand, Vietnam, Japan, China, Hong

Kong, Germany, United Kingdom, South Africa, The Netherlands, Canada and the United States of America. It is involved in the

manufacturing and distribution of oils and fats products, oleochemicals and palm oil-based biodiesel. Alongside oil palm, the Division is

also involved in agri-business activities and the cultivation of rubber.

Sime Darby Plantation is committed to becoming the world’s premier producer of sustainable palm oil. The Company’s upstream

activities adhere strictly to industry-proven best practices. In keeping with the aspiration of making sustainable futures real for everyone,

the Division makes a conscious and concerted effort towards the conservation and protection of the environment, the rehabilitation of

forests, the protection of wildlife and the promotion of the well-being of communities within and around its operations.

The Company also invests heavily in R&D and is the first in the world to successfully sequence, assemble and annotate the oil palm

genome.

Sime Darby Plantation welcomes partnerships with like-minded organisations to pursue innovative approaches towards developing

sustainable products and services in the plantation industry.


8


1.1.3.4 Sime Darby Plantation in Malaysia (Palm Oil Plantation)

Sime Darby Plantation Sdn Bhd’s operations in Malaysia is represented by 129 oil palm estates spanning over 314,294 hectares of planted

area in Peninsular Malaysia, Sarawak and Sabah and 7,862 hectares of rubber plantation in Negeri Sembilan, Melaka and Johor in

Peninsular Malaysia.

Estate locations

Northern (Kedah, Perak, Selangor and Pahang) 44

Southern (Negeri Sembilan, Melaka and Johor) 50

East Malaysia 35

Total 129

A total of 36 SOUs (Strategic Operating Units) and 3 bulking installations throughout Malaysia are engaged in the processing of the

company’s Fresh Fruit Bunch (FFB) harvests.


9


Mill locations

Northern (Kedah, Perak, Selangor, Pahang and Terengganu) 13

Southern (Negeri Sembilan, Melaka and Johor) 13

East Malaysia 10

Total 36

Prospects and Strategic Plan

Sime Darby Plantation’s improved performance within the next three years is bolstered by its profile of young palm trees, which represent

10 percent of the total planted hectarage in Malaysia.

On-going initiatives to derive high yield will continue with estates and mills adopting Best Agricultural Practices, and the planting of high-

yielding clonal palms.

For effective management and cost-efficiency, Sime Darby Plantation’s estates and mills operate within an organisational structure of

Strategic Operating Units (SOUs), zones and regions.


10


FFB Yield Breakdown by one for FY 11/12 (Malaysia)

Zone MT/ha Zone MT/ha

Kedah/North Perak 21.35 Melaka/Johor North 23.38

Perak South 24.65 Johor Central 21.09

Pahang 21.77 Johor South 19.91

Selangor West 25.85 Sabah North 20.64

Selangor Central 24.52 Sabah Central/South 25.70

Negeri Sembilan 1 21.34 Sarawak Lavang 19.12

Negeri Sembilan 2 23.01 Sarawak Rajawali/Pekak 21.83


11


1.1.4 History of Operation (Komplex Pekaka / SOU 31)

Developed by Austral Enterprises Berhad (AEB) subsidiary of Island & Peninsular with the first planting done in 1989 at Pekaka Estate

Pekaka was named after a bird “Kingfisher” and the first Manager was En. Haji Abdullah bin Bongsu Hanifah.

Ruai Estate was established together with Pekaka in 1989 and originally Ruai was known as Pekaka II which was under one

Management of Pekaka Estate. W.e.f from June 1992 Ruai has been separated as own entity.

Later the planting was expanded Eastward of Ruai which subsequently establish Dulang Estate with the first planting in 1991.

Paroh was establish with the first planting in 1993 and ended with 1995.

The complex was completed with the last planting of Chartquest Estate in 1997 with the joint venture of Rumah Mamat holding 16%

equity other than Wangsa Mujur Sdn. Bhd. and Sarako Sdn. Bhd.

AEB was acquired by Golden Hope in February 2004 which subsequently merged with Sime Darby in November 2007.

The Complex has 6 operating units consist of 5 estates and 1 Oil Mill.

It was officially known as Pekaka Complex. It never known as Suai Complex however due to the location near Suai, it was verbally

called among the people as “Suai Complex”.

1.1.5 Structure of Operation (Komplex Pekaka)

Komplex Pekaka is divided into 5 Estates:

1) Pekaka Estate

2) Ruai Estate

3) Dulang Estate

4) Chartquest

5) Paroh Estate


12


1.1.6 Sime Darby Plantation Malaysia Time Bound Plan for achieving certification (according 4.2.4 of RSPO Certification Systems)

1.1.3.1 Sime Darby Plantation Malaysia

Sime Darby’s actual Time Bound Plan is to be found as an attachment to the current report (See Attachments, 5.2)

1.1.3.2 Komplex Pekaka

Name of

Mill

Name of SOU Planted

area

Address Status Nov. 2012

Year of

Certification

Surveillance Audit

first

conducted

(year)

second

conducted

(year)

next

scheduled

(year)

Pekaka Mill SOU 34 (Pekaka) see

below

P.O Box 1641, 97010 Bintulu,

Sarawak, Malaysia

30.12.2011 2012 2013 2014


13


1.1.6 Standard Documents

The audit was carried out on base of:

1) RSPO Certification System (Final document approved by RSPO Executive Board / 26th June 2007)

2) National Interpretation of RSPO Principles and Criteria for Sustainable Palm Oil Production / Malaysia

(My-NIWG; including smallholder NI approved by RSPO Executive Board November 2010; the baseline NI indicators and guidance are as in

approved NI dated 26th April 2008)

1.1.7 Audit Reports

a) Certification Audit Report 2010

The original Certification Audit Report by Control Union (“Public Summary. RSPO. Sime Darby 2010. Malaysia; Report Number:

815150RSPOCURPT-2009-06-DO”) – comments to Certification Audit Report may be found in First Surveillance Audit Report.

b) First Surveillance Audit Report 2012

The first Surveillance Audit Report was generated by agroVet GmbH on 02.02.2013, details to be found in that respective Report.


14


1.2 Location

1.2.1 Map of SOU 34 – Komplex Pekaka


15


1.2.2 Map of Estates


16


1.2.3 Geodata

Mill

GPS coordinate

Latitude Longitude

Pekaka Oil Mill N 3.18505 E 113.04156

Estates

GPS coordinate

Latitude Longitude

Pekaka Estate N3.60095 E113.645

Ruai Estate N3.60706 E113.683

Dulang Estate N3.58998 E113.72

Chartquest Estate N3.62357 E113.633

Paroh Estate N3.55806 E113.707


17


1.2.4 Hectarage Statement (hectares Status FY 2012/2013)

Estates & Independent Settlers Total (ha) Planted (ha) FFB Yield (ton)

Pekaka Estate 2,626.14 1,906.09 40,981.28

Ruai Estate 2,521.00 1,984.77 37,982.40

Dulang Estate 2,480.00 2,288.96 44,327.07

Chartquest Estate 1,449.00 1,362.66 27,102.61

Paroh Estate 2,627.90 2,388.55 3,235.31

Total 11,704.04 9,931.03 153,628.7


18


1.3 Description of supply base (fruit sources)

1.3.1 Estates

1.3.1.1 Independent settlers and outgrowers

Independend settlers and outgrowers are also part of the supply base.

a) Independet settlers have not been included in the scope of audits and certification yet, however there will be a 3 years period

from time of certification to fully implement RSPO P&C into their operations.

b) One external outgrower is involved however not coming under the scope of RSPO certification yet.

1.3.1.2 Subcontractors

Subcontractors are mainly transporting- or maintanance companies, number to be found below.


19


1.3.1.3 Operational structure of the estates (Status November 2013)

Structural Organization – Estates

Estate

Number of

fields (according new field

structure)

Number of

Independent

Settlers,

Smallholders

Involved Subcontractors (Transporting

companies, others)

Pekaka Estate 31 2 1

Paroh 26 2 3

Dulang 28 1 3

Ruai 30 1 5

Chartquest 14 3 3


20


1.3.1.4 External supply / Outgrowers (Status October 2013, not included in one of the estates)

No. Supplier to Kilang Sawit Pekaka Deliveries FY 2012/2013

(Metric tons)

1 PEKAKA ESTATE 40,981.280

2 RUAI ESTATE 37,982.400

3 DULANG ESTATE 44,327.020

4 PAROH ESTATE 38,235.310

5 CHARTQUEST ESTATE 27,102.610

6 RAJAWALI ESTATE 157.340

7 DAMAI ESTATE 163.660

8 SAMUDERA ESTATE 155.410

9 BAYU ESTATE 86.450

10 SEMARAK ESTATE 40.760

11 RASAN ESTATE 1,160.050

12 SAHUA ESTATE 10.420

13 TAKAU ESTATE 119.610

14 KELIDA ESTATE 42.760

15 BELIAN ESTATE 85.930

16 LAVANG ESTATE 19.650

TOTAL Amount 190,670.66


21


1.3.2 Mill

Location / Adress Kilang Sawit Pekaka

Mill PO Box 1641

97008 Bintulu,

Sarawak.

Malaysia

Management Wan Mahahdi Bin Wan Yaacob

POME Treatment: There is no methane capture in the operation.


22


1.4 Date of plantings and cycle – Status November 2012

Planting Cycles – Estate I (Pekaka Estate)

Phase / Field

(according former field

identification system)

Total size

(ha)

1st Planted Already Replanted Replanting

scheduled Currently under

production

(ha)

Currently

unproductive

(ha) (date) (ha) (date) (ha) (date) (ha)

90PD 87.66 1990 87.66 - - 2014 87.66 87.66 -

90PE 77.07 1990 77.07 - - 2016 77.07 77.07 -

90PF 90.64 1990 90.64 - - 2016 90.64 90.64 -

90PG 89.12 1990 89.12 - - 2014 89.12 89.12 -

91PA 49.85 1991 49.85 - - 2015 49.85 49.85 -

91PB 105.43 1991 105.43 - - 2015 105.43 105.43 -

91PC 91.45 1991 91.45 - - 2015 91.45 91.45 -

91PD 75.43 1991 75.43 - - 2017 75.43 75.43 -

91PE 94.58 1991 94.58 - - 2017 94.58 94.58 -

90PI 85.99 1990 85.99 - - 2014 85.99 85.99 -

90PJ 93.52 1990 93.52 - - 2016 93.52 93.52 -

91PF 57.97 1991 57.97 - - 2018 57.97 57.97 -

91PG 89.29 1991 89.29 - - 2018 89.29 89.29 -

91PH 111.12 1991 111.12 - - 2019 111.12 111.12 -

91PI 90.12 1991 90.12 - - 2019 90.12 90.12 -

91PJ 66.69 1991 66.69 - - 2019 66.69 66.69 -

91PK 77.76 1991 77.76 - - 2020 77.76 77.76 -

91PL 77.22 1991 77.22 - - 2020 77.22 77.22 -


23


Planting Cycles – Estate I (Pekaka Estate)

Phase / Field



Total size

(ha)



production

(ha)

Currently

unproductive


91PM 75.99 1991 75.99 - - 2020 75.99 75.99 -

92PA 91.88 1992 91.88 - - 2018 91.88 91.88 -

92PB 86.84 1992 86.84 - - 2021 86.84 86.84 -

93PA 58.86 1993 58.86 - - 2021 58.86 58.86 -

89PA 89.13 1989 89.13 2011 89.13 - - - 89.13

89PB 77.45 1989 77.45 2011 77.45 - - - 77.45

89PE 78.80 1989 78.80 2011 78.80 - - - 78.80

90PH 79.23 1990 79.23 2013 79.23 - - - 79.23

89PC 78.62 1989 78.62 2013 78.62 - - - 78.62

89PD 77.46 1989 77.46 2011 77.46 - - - 77.46

90PA 91.00 1990 91.00 2012 91.00 - - - 91.00

90PB 60.26 1990 60.26 2012 60.26 - - - 60.26

90PC 81.61 1990 81.61 2013 81.61 - - - 81.61

Total 2538.04 - 2,538.04 - 713.56 - - 1,824.48 713.56


24


Planting Cycles – Estate II (Ruai Estate)

Phase / Field



Total size

(ha)



production

(ha)

Currently

unproductive


89RA 57.97 1989 57.97 - - 2015 57.97 57.97 -

89RB 69.28 1989 69.28 - - 2015 69.28 69.28 -

2013A 89.00 1991 89.00 4 / 2013 89.00 - - -

2013B 75.60 1991 75.60 5 / 2013 75.60 - - -

91RC 73.20 1991 73.20 - - 2014 73.20 73.20 -

91RD 97.15 1991 97.15 - - 2014 97.15 97.15 -

2012A 74.90 1992 74.90 5 / 2012 74.90 - - -

2012B 88.10 1992 88.10 6 / 2012 88.10 - - -

92RC 66.60 1992 66.60 - - 2016 66.60 66.60 -

92RD 73.35 1992 73.35 - - 2016 73.35 73.35 -

92RE 65.96 1992 65.96 - - - - 65.96 -

92RF 75.97 1992 75.97 - - - - 75.97 -

92RG 89.75 1992 89.75 - - 2017 89.75 89.75 -

92RH 83.04 1992 83.04 - - 2017 83.04 83.04 -

92RI 86.63 1992 86.63 - - 2018 86.63 86.63 -

92RJ 92.54 1992 92.54 - - 2018 92.54 92.54 -

92RK 75.67 1992 75.67 - - - - 75.67 -

92RL 76.65 1992 76.65 - - - - 76.65 -

92RM 86.98 1992 86.98 - - - - 86.98 -

92RN 62.64 1992 62.64 - - - - 62.64 -


25


Planting Cycles – Estate II (Ruai Estate)

Phase / Field



Total size

(ha)



production

(ha)

Currently

unproductive


92RO 92.87 1992 92.87 - - - - 92.87 -

92RP 104.34 1992 104.34 - - - - 104.34 -

92RQ 62.45 1992 62.45 - - - - 62.45 -

93RA 66.10 1993 66.10 - - 2018 - 66.10 -

93RB 72.44 1993 72.44 - - 2018 - 72.44 -

93RC 68.69 1993 68.69 - - - - 68.69 -

93RD 86.40 1993 86.40 - - - - 86.40 -

93RE 78.92 1993 78.92 - - - - 78.92 -

93RF 79.22 1993 79.22 - - - - 79.22 -

93RG 39.96 1993 39.96 - - - - 39.96 -

Total 2,312.37 - 2,312.37 - 327.60 - - 2,312.37 -


26


Planting Cycles – Estate III (Dulang Estate)

Phase / Field



Total size

(ha)



production

(ha)

Currently

unproductive


2012B 35.00 1993 35.00 2012 35.00 - - - -

2012A 97.00 1991 97.00 2012 97.00 - - - -

2013A 99.00 1991 99.00 2013 99.00 - - - -

91DC 82.00 1991 82.00 - - Jan 14 - - 82.00

91DD 71.12 1991 71.12 - - Jan 15 - - 71.12

91DE 108.00 1991 108.00 - - Jan 14 - - 108.00

92DA 80.00 1992 80.00 - - Jan 17 - - -

92DB 75.94 1992 75.94 - - - - 75.94 -

92DC 84.00 1992 84.00 - - Jan 15 - 84.00

93DI 103.00 1993 103.00 - - - - 103.00 -

93DB 91.15 1993 91.15 - - - - 91.15 -

93DC 63.75 1993 63.75 - - - - 63.75 -

92DD 114.00 1992 114.00 - - Jan 17 - 114.00 -

93DD 80.00 1993 80.00 - - - - 80.00 -

93DE 94.00 1993 94.00 - - - - 94.00 -

93DF 88.00 1993 88.00 - - - - 88.00 -

93DG 101.00 1993 101.00 - - - - 101.00 -

92DE 27.00 1994 27.00 - - - - 27.00 -

94DA 104.00 1994 104.00 - - - - 104.00 -


27


Planting Cycles – Estate III (Dulang Estate)

Phase / Field



Total size

(ha)



production

(ha)

Currently

unproductive


94DB 109.00 1994 109.00 - - Jan 18 - 109.00 -

95DA 83.00 1995 83.00 - - - - 83.00 -

95DB 79.00 1995 79.00 - - - - 79.00 -

94DC 80.00 1994 80.00 - - - - 80.00 -

93DH 57.00 1993 57.00 - - - - 57.00 -

95DC 88.00 1995 88.00 - - - - 88.00 -

94DD 70.00 1994 70.00 - - - - 70.00 -

94DE 101.00 1994 101.00 - - - - 101.00 -

94DF 23.00 1994 23.00 - - Jan 18 - 23.00 -

Total 2,057.96 28 2,057.96 - 231 - - 1,481.84 345.12


28


Planting Cycles – Estate IV (Chartquest Estate)

Phase / Field



Total size

(ha)



production

(ha)

Currently

unproductive


FIELD 97CA 114.17 1997 114.17 - - 2017 114.17 114.17 -

FIELD 97CB 88.53 1997 88.53 - - 2017 88.53 88.53 -

FIELD 97CC 83.05 1997 83.05 - - - - 83.05 -

FIELD 97CD 73.75 1997 73.75 - - - - 73.75 -

FIELD 97CE 99.75 1997 99.75 - - - - 99.75 -

FIELD 97CF 105.43 1997 105.43 - - - - 105.43 -

FIELD 97CG 74.71 1997 74.71 - - 2016 74.71 74.71 -

FIELD 97CH 103.55 1997 103.55 - - 103.55 -

FIELD 97CI 114.89 1997 114.89 - - 2016 114.89 114.89 -

FIELD 97CJ 89.23 1997 89.23 - - 89.23 -

FIELD 97CK 93.85 1997 93.85 - - 2017 93.85 93.85 -

FIELD 97CL 103.25 1997 103.25 - - - - 103.25 -

FIELD 97CM 102.69 1997 102.69 - - 2016 102.69 102.69 -

FIELD 97CN 115.81 1997 115.81 - - - - 115.81 -

Total 1,362.66 - 1,362.66 - - - 588.84 1,362.66 -


29


Planting Cycles – Estate V (Paroh Estate)

Phase / Field



Total size

(ha)



production

(ha)

Currently

unproductive


93PA 82.33 1993 82.33 - - - - 82.33 -

93PB 75.84 1993 75.84 - - - - 75.84 -

94PA 69.72 1993 69.72 - - - - 69.72 -

94PB 88.25 1994 88.25 - - - - 88.25 -

94PC 109.03 1994 109.03 - - - - 109.03 -

94PD 65.57 1994 65.57 - - - - 65.57 -

94PE 78.47 1994 78.47 - - - - 78.47 -

94PF 83.53 1994 83.53 - - - - 83.53 -

94PG 108.34 1994 108.34 - - - - 108.34 -

94PH 114.51 1994 114.51 - - - - 114.51 -

94PI 70.20 1994 70.20 - - - - 70.20 -

94PK 79.97 1994 79.97 - - - - 79.97 -

94PL 93.35 1994 93.35 - - - - 93.35 -

94PM 111.14 1994 111.14 - - - - 111.14 -

94PN 118.92 1994 118.92 - - - - 118.92 -

94PO 88.38 1994 88.38 - - - - 88.38 -

94PQ 104.05 1994 104.05 - - - - 104.05 -

94PR 106.25 1994 106.25 - - - - 106.25 -

94PS 111.66 1994 111.66 - - - - 111.66 -


30


Planting Cycles – Estate V (Paroh Estate)

Phase / Field



Total size

(ha)



production

(ha)

Currently

unproductive


94PT 75.67 1994 75.67 - - - - 75.67 -

94PU 115.71 1994 115.71 - - - - 115.71 -

95PA 78.69 1995 78.69 - - - - 78.69 -

95PB 88.65 1995 88.65 - - - - 88.65 -

95PC 76.94 1995 76.94 - - - - 76.94 -

95PD 86.85 1995 86.85 01/10/2013 86.85 - - - 86.85

94PJ 106.53 1994 106.53 01/10/2013 106.53 - - - 106.53

Total 2,388.55 2,388.55 - 193.38 - - 2,388.55 193.38


31


1.5 Other certifications held

1.5.1 ISO

1.5.1.1 Mill

No ISO certifications held.

1.5.1.2 Estates

No ISO certifications held.

1.5.2 Others

1.5.2.1 Mill

ISCC DE (First Gathering Point and Conversion), expires in 2014

1.5.2.2 Estates

No other certifications held.


32


1.6 Organizational information / Contact Person

1.6.1 Sime Darby – SOU 34 / Pekaka

Clients Company

Sime Darby Plantation Sdn Bhd

Level 3a, Main Block,

Plantation Tower, No 2 Jalan

P.J.U.1a/7, 47301 Ara Damansara,

Selangor, Darul Ehsan, Malaysia

Management

Representative

And/or

Contact Person

Mr. Mohd Saiful Bari Bin Munir

Audited Unit /

Location

SOU 34

Management

Representative

Mill: Mr. Muftahuddin Bin Fakeh

E1/ Belian: Mr. Khoirul Anwar bin

Shafii

E2 / Kelida : Mr. Mark Philip Mc.

Guire

Contact Person Mr. Mohd Saiful Bari Bin Munir

(Sime Darby HQ)

Oil Mill(s) Kilang Sawit Pekaka

97008 Bintulu

Sarawak

Malaysia

Supplying

estates

1) Pekaka Estate

2) Ruai Estate

3) Dulang Estate

4) Chartquest Estate

5) Paroh Estate

Outgrowers – non

Sime

Darby suppliers

See information above

Product

CPO, PK


33


1.6.2 Contact Details of staff relevant for RSPO certification

Contact Details SOU Pekaka Mill

Manager

E-Mail

Location

Telefone

Office Mobil

Wan Mahadi Bin Wan

Yaacob

wan.mahadi.wan.

[email protected]

Pekaka Mill 086-325726 019 987113

Contact Details SOU Pekaka Estates

Entity / Estate

Manager

E-Mail Telefone

Office Mobil

Pekaka Estate Munireternam A/L

Muniandy

[email protected] 086-477305 016-3071445

Ruai Estate Khairul Effendy bin

Hassan

[email protected] 086-326167 011-12021773

Dulang Estate Vincent Baginda

Anak Ambi

[email protected] 086-325359 019-8852591

Chartquest Estate Hamilee Bin Abd

Hamid

[email protected] 085-734012 013-3535736

Paroh Estate Unting Ak Randi [email protected] 086-326160 013-7641965


34


1.7 Tonnages certified

MILL Annual Output (FY 2012/2013)

Mill Capacity

(mt/hour) Total ha

Sime Darby only (without outgrowers)

CPO

(mt) p.a.

PK

(mt) p.a.

Kilang Sawit Pekaka 38,909.97 38,909.97 9,595.75 60


35


2. Assessment Process

2.1 Assessment Methodology (Program, Site, Visits, etc.)

The entire RSPO Surveillance Assessment was carried out in October 2013. As already mentioned above the certification Assessment was

carried out by a different CB than the Surveillance Assessment.

The sample size of supplying bases was chosen from 5 estates. Derived from the fact that the Management of all 5 estates is centralized, 2

estates have been chosen to be fully assessed (= square root x 0,8 1,78).

Scope Date Audit Team: MPG: Matthias Grill,

CS: Cecep Saepulloh

CHH: Chan Han Hee

Program / Activities

Audit Part I

Auditor Meeting 06.10.2013 MPG, CS, CHH Final auditors preparation and coordination, Kuala Lumpur and Bintulu


36



CS: Cecep Saepulloh

CHH: Chan Han Hee


RSPO P&C Surveillance Audit

Assessment Mill

Kilang Sawit

Pekaka

09.10.2013 MPG, CS, CHH Full audit opening at Kilang Sawit Pekaka with audit team and representatives of Komplex

Pekaka and Sime Darby; chosing random sample and splitting of audit team

MPG Review of structure, documents, Quality Management System, RSPO related documents and

operational requirements of the mill; office of Mill / Kilang Sawit Pekaka

MPG Review of specific environmental-, specific social- and specific occupational health & safety

relevant documents concerning RSPO P&C implementation; office of Kilang Sawit Pekaka

MPG Site visit of Mills operation, Introduction and Explanation by Auditee, Interviews of

Management and technical responsible staff; visual assessment of entire production line,

technical equipement, workshops, utilities and waste management; further interviews of staff

and workers specifically on social, occupational health & safety as well as environmental

issues including visual assessment of entire operation and the referring status of

implementation of these specific P&C at Kilang Sawit Pekaka;

MPG Document- and Record Assessment according RSPO P&C Checklist

MPG Auditor internal summary, discussion on findings

MPG Summary of Kilang Sawit Pekaka’s assessment and audit closing with auditees representatives

Assessment Estate

Ladang Paroh

CHH, CS Assessment of Ladang Paroh then carried out parallel to Mill assessment

CHH, CS …for more information see next page


37



CS: Cecep Saepulloh

CHH: Chan Han Hee



Assessment Estate

Paroh

09.10.2013 CHH, CS Specific audit opening at Ladang Paroh with representatives of Ladang Ruai and

representatives of Sime Darby;

CHH, CS Review of structure, documents, Quality Management System, RSPO related documents and

operational requirements of the estate; review of environmental-, social- and occupational

health & safety relevant documents concerning RSPO P&C implementation;

CHH, CS Site visit of Ladang Paroh’s operation, assessments of boundaries, waterways, puffer zones,

PPP spraying, manuring and harvesting); further on visual assessment of workshops, PPP-,

fertilizer and fuel storage, farm machinery shed, waste managegment, farm vicinity and

workers quarters; additionally the relevant infrastructure of Komplex Ruai including social

facilities were visited and presented by auditees

CHH, CS Interviews of workers and staff within above mentioned site visit

CHH, CS Continuing on review of documents, Quality Management System, RSPO related documents

and operational requirements of the estate, review of environmental-, social- and

occupational health & safety relevant documents and finalization of checklist

CHH, CS Preparation for audit closing and summary

CHH, CS Summary of Ladang Paroh’s Assessment and audit closing with auditees representatives


38



CS: Cecep Saepulloh

CHH: Chan Han Hee



Assessment Estate

Dulang

10.10.2013 MPG, CS, CHH Specific audit opening at Ladang Dulang with representatives of Ladang Dulang and

representatives of Sime Darby

MPG, CS, CHH Review of structure, documents, Quality Management System, RSPO related documents and

operational requirements of the estate; review of environmental-, social- and occupational

health & safety relevant documents concerning RSPO P&C implementation;

MPG, CS, CHH Site visit of Ladang Dulang’s operation of boundaries, waterways, puffer zones, PPP spraying,

manuring and harvesting); further on visual assessment of workshops, PPP-, fertilizer and fuel

storage, farm machinery shed, waste managegment, farm vicinity and workers quarters;

additionally the relevant infrastructure of Komplex Pekaka including social facilities were

visited and presented by auditees

MPG, CS, CHH Interviews of workers and staff within above mentioned site visit

MPG, CS, CHH Continuing on review of documents, Quality Management System, RSPO related documents

and operational requirements of the estate, review of environmental-, social- and

occupational health & safety relevant documents and finalization of checklist;

MPG, CS, CHH Preparation for Audit closing and summary

MPG, CS, CHH Summary of Ladang Dulang’s Assessment and audit closing with auditees representatives

Komplex Pekaka 10.10.2013 MPG, CS, CHH Summary of Komplex Pekaka Assessment and audit closing with all auditees representatives


39


2.2 Date of next Surveillance Audit

2.2.1 Mill / unit and Supplying Estates

Date of next surveillance Audit will be approcximately October 2014.


40


2.3 Lead Assessor / Assessment Team

The Assessment Team was consisting of 3 persons, details may be found below.

Function Person Field of activity

and special

expertise

Qualification and experience

Lead Auditor Dr. Matthias Grill Lead Auditor,

Quality

Management

System, GAP, IPM,

pesticide and

fertilizer use; Fluent

in English language

Matthias Grill graduated at the College for Agriculture and Forestry in Raumberg (1976 –

1981) and became Agricultural Engineer after several years’ practical work in the

agricultural business in Austria and USA. Additionally studies were finalized with a Master in

Veterinary Science in 1993. In the following years Mr. Grill was active in the agricultural

and veterinary related sectors. 1998 he finally did focus mainly on agricultural plus

veterinary Quality Assurance and founded the agroVet Certification Body (Managing

Director from 1998 to 2010). In the same year Mr. Grill also took over the family farm of his

parents and still runs this operation in Austria since. After several Trainings and long time of

experience he became Lead Auditor according EN/ISO 17024, GLOBALGAP train the

trainer (fruits and vegetables), GLOBALGAP Scheme Manager and also Auditor and

Scheme Manger for several national and international Quality Assurance Schemes in the

agricultural- and food business. From 2004 Matthias Grill gathered active Audit

experience in several countries around the world (South America, Africa, China, Europe,

South East Europe, Turkey, USA, South East Asia, etc.) as external Auditor, as inhouse

Witness Auditor and by conducting audits in Oil Palm (Malaysia). Since 2008 Mr. Grill is

actively involved in RSPO implementation in agroVet, became 2010 agroVet’s RSPO Lead

Auditor and also RSPO Scheme Manager. Parallel to it he was approved as an ISCC

Auditor and Scheme Manager. Besides his auditing activities Mr. Grill is conducting

regularly in house trainings within the Certification Body as well as external trainings and

presentations on an international level in different kind of scopes. In 2010 Matthias Grill

became Business Development Manager of agroVet, especially responsible for

implementation of new Standards, specialized in the entire field of Sustainability.


41


Function Person Field of activity

and special

expertise

Qualification and experience

Co - Auditor Mr. Cecep

Saepulloh

Environmental ,

health and safety,

HCV- and social

Expert Fluent in

English and Bahasa

language

Cecep Saepulloh hold a bachelor from Faculty of Forestry in Bogor Agriculture University

(IPB) in 1995, he worked for forestry sector (logging company and integrated wood

industry) for 5 years during 1996 - 2001 and worked for Certification body TUV Rheinland

Indonesia for 11 years during January 2001 – May 2012. Cecep is qualified as ISO 9001 and

ISO 14001 lead auditor, Forest certification and chain of custody auditor for FSC,PEFC and

LEI standard and lead auditor for timber legality verification as well. He is also qualified as

RSPO, ISPO and ISCC auditor and getting approval from RSPO as HCV team leader.

Co - Auditor Mr. Chan Han Hee

Plantation and

Malaysian

agriculture Expert;

Environmental and

Social Expert;

Fluent in English

and Bahasa

language

He graduated with Bachelor of Agricultural Science (Honours) from University of Malaya in

1973 and Master of Science from University of Philippines @ Los Banos in 1978. Since

graduation in 1973 until retirement from government service in 2005, he worked in the

Department of Agriculture Malaysia (33 years). Amongst the posts held included as Director

of Pesticide Control and Director of Rice, Industrial Crops and Floriculture. From 2006 to 2009, he

was Senior Vice President in MAFC, a Government Linked company involved in the food

supply chain. Since 1993 until now, he has been actively involved in agricultural

standards development and is the current Chairman of the National Agricultural Industrial

Standards Committee. He was a member of the core team that established SALM, the

Malaysian Certification Scheme for GAP. He is also a trained auditor in ISO 9000;

GlobalGAP, ISCC and RSPO. Since 2009, he has been actively involved in GlobalGAP,

ISCC and RSPO audits in Malaysia, both as lead auditor and co-auditor.


42


2.4 Certification Body

Certification Body (CB) Head Quarter:

agroVet GmbH

Königsbrunnerstraße 8

A-2202 Enzersfeld

Austria

www.agrovet.at

Contact person of

Certification Body

Dr. Matthias Grill

RSPO Scheme

Manager

Mag. Klaus Guger

2.5 Outlinie of how stakeholder consultation was managed

Refering to the Certification Audit it obviously was conducted 31st July 2009 not only for Komplex Lavang but also for neighbouring SOU’s at the

same time and place. Within the Certification Report no major non compliances were found.

Individual Stakeholder Meetings were performed in all estates and in mill as recommended in first ASA Report.

http://www.agrovet.at/


43


3. Assessment Findings

3.1 Summary of findings

Principle 1: Commitment to transparency

Criterion No Indicator Yes No n.a. Remarks

Criterion 1.1: Oil Palm growers provide adequate information to other stakeholders on environmental, legal and social issues relevant to RSPO criteria, in appropriate languages & forms to allow for effective participation in decision making.

1.1.1 Records of requests and responses must be maintained. MAJOR compliance

(x)

M: Pekaka Mill is closely operative coordinated with Estates Dulang Observation: The actual joint stakeholder meeting (as pointed out in the ASA 2012) had to be scheduled for October 2013 (second half) due to organizational reasons

x

E1: Stakeholder meetings are basically regularly held and documented; the recommended Stakeholder Meeting (as in ASA 2012) with local community (nearby longhouse) was held 19.08.2013, the other one with contractors and workers on 23.09.2013

(x)

E2: Observation: Although there has been some Dulang specific internal stakeholder meeting the joint one is scheduled as mentioned above in later October 2013


44


Criterion No Indicator Yes No n.a Remarks

Criterion 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.

Management documents relating to environmental, social and legal issues relevant to compliance to RSPO criteria. Documents that must be publicly available but not limited to:

1.2.1 Land titles/user rights (2.2) x M: Derived from valid MPOB license and register: annual validity checked: expires 31.07.2014 (No: 500140704000)

x E1: Estate Paroh is part of the land under title (Lot 33. Mukim Sawai), issued by Miri Land Office for lease until 17.12.2045 to be used only for agricultural purposes

x E2: Dulang land title: approval lot 41 (consisting of Estates Paroh, Dulang, Pekaka, Ruai) – 10.333ha, until 17.12.2045 (Ref. Doc. No 296/Doss No 90/85 of Jabatan Tanah&Survey / Miri

1.2.2 Health and safety plan (4.7) x M: Generated for FY 2013/2014

x E1: OSH Programme for FY 2013/14 was shown

x E2: Updated for for FY 2013/2014 – as detailed below and in OSH Manual as part of PQMS (Plantation QMS)

1.2.3 Plans and impact assessment relating to environmental and social impacts (5.1, 6.1, 7.1, 7.3)

x M: SIA: generated and updated / 01.07.2103, EIA: also generated and updated 01.07.2013 see details below

x E1: Initial SIA done in June 2009 for SOU 34; Action Plan Social Assessment for Paroh Estate for FY 2013/2014 is available

x E2: SIA 2009, Plan FY 2013/2014 in place; EIA 2009, Plan FY 2013/2014 in place (more info below)

1.2.4 Pollution prevention plans (5.6) x M: Implemented for FY 2013/2014

x E1: Pollution Prevention Plan for FY presented 2013/14 is available

x E2: Generated and updated – see details below

1.2.5

Detail of complaints & grievances (6.3)

x M: Part of MQMS (Mill QMS) 8.5.1

x E1: No complains so far received from outsiders. Internal requests basically for house repairs promptly attended by management

x E2: Part of SOM (Standard Operating Manual (App.5.5) and SPMS (Sustainable Plantation Management System, App. 5) of Estate


45



Criterion 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.

Management documents relating to environmental, social and legal issues relevant to compliance to RSPO criteria. Documents that must be publicly available but not limited to:

1.2.6 Negotiation procedures (6.4)

x M: Part of MQMS (Mill QMS) 8.5.1

x E1: No complains so far received from outsiders. Internal requests basically for house repairs promptly attended by management

x E2: Part of SOM (Standard Operating Manual (App.5.5) and SPMS (Sustainable Plantation Management System, App. 5) of Estate

1.2.7 Continuous improvement plan (8.1) x M: Part of MQMS (Mill QMS) 8.5.1

x E1: Stated in SOM (Standard Operating Manual) Subsection 5.5, Management Responsibility

x E2: Also in EQMS (Estate Quality Management System) – and SOM 5.5, 8.5.1


46


Principle 2: Compliance with applicable laws and regulations

Criterion

Yes No n.a Remarks

Criterion 2.1: There is compliance with all applicable local, national and ratified international laws and regulations.

2.1.1 Evidence of compliance with legal requirements. MAJOR compliance

x M: LORR Register in place and updated / signed

x E1: LORR is available and reviewed annually (last done on 09/07/2013)

x E2: LORR Register in place, reviewed and updated 10.09.2013

2.1.2 A documented system, which includes written information on legal requirements. MINOR compliance

x M: LORR annually revised and checked: for FY 2013/2014 done by former Mill Manager Mr. Mohd. Asid 05.07.2013

x E1: Mr. Omar Kamaluddin, Assistant Manager is responsible

x E2: Annual review done and recorded

2.1.3 A mechanism to for ensuring that they are implemented. MINOR compliance

x M: By current management, annual review and also assessment while audit in mill; licenses and permits fully displayed and avaiable

x E1: MPOB License for sale and transfer of FFB and Permit for storage of diesel are displayed

x E2: By assessment of documents and field visit

2.1.4 A system for tracking any changes in the law. MINOR compliance

x M: Annual review internally in mill and additional update and info from Sime Darby HQ

x E1: Legal department from HQ does the review and track changes

x E2: Via internal mechanism (Dulang) and also by HQ information provided and internal inspections


47



Criterion

Yes No n.a Remarks

Criterion 2.2: The right to use the land can be demonstrated and is not legitimately contested by local communities with demonstrable rights.

2.2.1 Evidence of legal ownership of the land including history of land tenure. MAJOR compliance

x M: Land title related to Dulang Estate see info below; operation started in 1996

x E1: 60 year lease land title issued by Miri Land Office. Formerly logged-over forest land

x E2: As above: Dulang land title approved Lot 41 (consiting of Estates Paroh, Dulang, Pekaka, Ruai) – 10.333ha, until 17.12.2045 (Ref. Doc. No 296/Doss No 90/85 of Jabatan Tanah&Survey / Miri till 2045, history presented at opening

2.2.2 Growers must show that they comply with the terms of the land title. MAJOR compliance

x M: As above, MPOB license valid till 31.07.2014

x E1 : Land title stipulates only for agricultural purposes

x E2: Visually assessed by documents and also field visit

2.2.3

.1

Evidence of boundary stones along the perimeter adjacent to state land and other reserves are being located and visibly maintained. MINOR compliance

x M: n.a.

x E1: No adjacent state land or other reserve, surrounded by other Estates, outer boundaries visibly maintained

x E2: Boundaries were started to be registered via GPS – evidence of GPS mapping evident. Land use related issues: some claims were raised when land title was applied, under dispute and finally compensated by local authorities as document shows (1985, by local authorities), hence no land under dispute anymore


48


Criterion

Yes No n.a Remarks

Criterion 2.2: The right to use the land can be demonstrated and is not legitimately contested by local communities with demonstrable rights.

2.2.3

.2

Where there are, or have been, disputes, proof of resolution or progress towards resolution by conflict resolution processes acceptable to all parties are implemented. Cross ref. to 2.3.3, 6.4.1 and 6.4.2. Minor compliance

x M: No disputes evident

x E1: No dispute has been made so far

x E2: No conflicts evident


49




Criterion 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.

2.1.1

Where lands are encumbered by customary rights, participatory mapping should be conducted to construct maps that show the extent of these rights. MAJOR compliance

x M: No evidence

x E1: No native customary rights (NCR) land are involved in estate land

x E2: No conflicts

2.3.2 Map of appropriate scale showing extent of claims under dispute. MAJOR compliance

x M: No evidence, hence n.a.

x E1: Not applicable as above


2.3.3. Copies of negotiated agreements detailing process of content. MINOR compliance

x M: No evidence, hence n.a.

x E1: Not applicable as above



50


Principle 3: Commitment to long-term economic and financial viability


Criterion 3.1: There is an implemented management plan to achieve long-term economic and financial viability.

3.1.1 Annual budget with a minimum 2 years of projection. MAJOR compliance

x M: Budgeting fully done till 2018

x E1: Projections from FY 2013/2014 to 2017/2018 are available for crop (FFB mt/ha; CPO mt/ha, costs of production, including transportation)

x E2: Budget plan for FY 2013/2014 in place, projection until 2018 generated

3.1.2 Annual replanting programme projected for a minimum of 5 years with yearly review. Minor compliance

x M: n.a.

x E1: Annual Replanting Program from FY 2013/14 to 2017/2018 was shown

x E2: Replanting Plan for FY 2013/2014 (8 fields indicated for next 5 years


51


Principle 4: Use of appropriate best practices by growers and millers

Criterion Yes No n.a Remarks

Criterion 4.1: Operating procedures are appropriately documented and consistently implemented and monitored.

4.1.1 Documented Standard Operating Procedures (SOP) for estates and mills MAJOR compliance

x M: SOP’s part of MQMS – complete and organized available

x E1: SOM (Standard Operating Manual), ARF; (Agricultural Reference Manual), SOP (Standard Operating Procedure) for operations are fully available

x E2: SOP and SOM are part of EQMS (Estate QMS), also ARF available for relevant processes

4.1.2 Records of monitoring and the actions taken are maintained and kept for a minimum of 12 months. MINOR compliance

x M: In MQMS and SOP’s for mill – 5 years document keeping time frame

x E1: Visits made by Planting Advisors and Agronomists (last done on 17/12013 and 20/5/13 respectively); reports are available. Sime Darby policy is to keep records for 5 years

x E2: Internal evaluations by Sime Darby done regularly, records available and kept min. 5 years


52


Criterion Indicator Yes No n.a Remarks

Criterion 4.2: Practices maintain soil fertility at, or where possible improve soil fertility to, a level that ensures optimal and sustained yield. MY-NIWG recommends that the indicators in criterion 4.2 and 4.3 are linked

4.2.1 Monitoring of fertilizer inputs through annual fertilizer recommendations. MINOR compliance

x M: Not relevant at mill

x E1: : Fertilizer recommendations made by Agronomist/R&D based on soil and foliar sampling; monitored through Agronomist and PA visits

x E2: E.g. Fertilizer recommendation report (HQ- 8th July 2013)

4.2.2 Evidence of periodic tissue and soil sampling to monitor changes in nutrient status. MINOR compliance


x x E1: Foliar and soil samplings done on annually base

x E2: Report from June 2008

4.2.3 Monitor the area on which EFB, POME and zero-burn replanting is applied. MINOR compliance


x E1: No application of POME and EFB, only compost is applied; in replanting area, Zero burning is followed as company policy

x E2: Zero burning policy implemented, visually assessed at the audit – no evidence found; EFB application areas (replanted fields) and compost application areas (mature fields) inspected


53



Criterion 4.3: Practices minimize and control erosion and degradation of soils.

4.3.1 Documented evidence of practices minimizing soil erosion and degradation (including maps). MINOR compliance


x E1: Frond stacking, Neprolepsis planting, terracing, road side pit are practiced; LCC is being planted in new replanting fields; Land > 25° slope are left untouched and are not replanted, becoming CSA (Conservation Set Aside areas)

x E2: Soil mapping demonstrated at opening (also part of presentation forwarded to CB), best practice compliance inspected at field visit (compost application, front stacking, cover crops, etc. in place, field maintenance, etc.)

4.3.2 Avoid or minimize bare and exposed soil within estates. MINOR compliance

x M: not relevant at mill

x E1: No bare or exposed soil in estate

x E2: GAP implementation checked at field visit, compliance found in place, no bare or exposed grounds

4.3.3 Presence of road maintenance programme MINOR compliance


x E1: 3 months roadside pruning program, resurfacing, grading and compacting of road surface as required (usually in a 2 months period)

x E2: “Road Patching and Grading Programme for 2013/2014


54


Criterion

Yes No n.a Remarks

Criterion 4.3: Practices minimize and control erosion and degradation of soils.

4.3.4 Subsidence of peat soils should be minimized through an effective and documented water management programme. MINOR compliance


x E1: No peat in Estate

x E1: Visual evidence that Water Table Management is implemented, measured and recorded every month (drainage network and blocking evident) Recommendation: see 5.6.3

4.3.5 Best management practices should be in place for other fragile and problem soils (e.g. sandy, low organic matter and acid sulphate soils). MINOR compliance


x E1: No other fragile and problem soils in Estate Paroh

x E2: No other fragile soils evident


55



Criterion 4.4: Practices maintain the quality and availability of surface and ground water.

4.4.1 Protection of water courses and wetlands, including maintaining and restoring appropriate riparian buffer zones at or before replanting along all natural waterways within the estate. MAJOR compliance


x E1: Two rivers, Sungei Suai and Sungei Paroh flows through estate; well kept riparian buffer zones observed; Sime Darby policy on river protection visibly implemented

x E2: Buffer Zones indicated in plans, visual assessment of audit team at part of Sungai Paroh (boarder to Paroh Estate) does prove compliance

4.4.2 No construction of bunds/weirs/dams across the main rivers or waterways passing through an estate. MAJOR compliance


x E1: No evidence of bund/weir/dam construction across the two rivers

x E2: as above – no evidence at riverbank assessment

4.4.3 Outgoing water into main natural waterways should be monitored at a frequency that reflects the estates and mills current activities which may have negative impacts (cross ref to 5.1 and 8.1). MAJOR compliance

x M: Activities monitored in Update of SIA/EIA 2013/2014 - no changes since last year: 13 clearing and biological cleaning ponds before the water is discharged in the Sungai Belenga; DoE (Dep. of Environmental) permission for 2013/2014 exist (licence 000676), expires 30.07.2014

x E1: Water quality is monitored every quarter; records for first half of 2013 shown; water sampling point at block 24/25 was visited

x E2: Water management plan and analyses of last September 2013 do prove compliance


56



Criterion 4.4: Practices maintain the quality and availability of surface and ground water.

4.4.4 Monitoring rainfall data for proper water management. MINOR compliance

x M: Rainfall records available – monitored within daily production records

x E1: Rainfall data is collected by estate itself; rainfall record for January to December 2012 was shown

x E2: Rainfall data also in presentation shown as checked in records (last one calendar year 2012 was 3.912 mm )

4.4.5 Monitoring of water usage in mills (tonnagewater use/tonne FFB processed). MINOR compliance

x M: Available for past years, clearly recorded and indicated monthly in record sheets – currently (last August: 1.33)

x E1: Not relevant at Estate level

x E2: Not relevant at Estate level

4.4.6 Water drainage into protected areas is avoided wherever possible. Appropriate mitigation measures will be implemented following consultation with relevant stakeholders. MINOR compliance

x M: No evidence of protected areas nearby

x E1: Water from drains goes into the two rivers, no protected

area involved

x E2: Not relevant at this operation, natural drainages are going

mainly into Sungai Paroh

4.4.7 Evidence of water management plans. MINOR compliance

x M: Contingency Plan and Action Plan for FY 2013/2014 (issued 01.07.2013, Mr. Wan Mahadi)

x E1: Water Reduction Plan and Water Contingency Plan for FY 2013/14 were shown

x E2: Plans and records of water management and monitoring are available


57



Criterion 4.5: Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate Integrated Pest Management (IPM) techniques.

4.5.1 Documented IPM system. MINOR compliance


x E1: Documented in Section 15 / Plant Protection in ARM (Agricultural Reference Manual)

x E2: Documented in ARM (Agricultural Reference Manual), Section 15

4.5.2 Monitoring extent of IPM implementation for major pests. MINOR compliance


x E1: Census for Rhino beetle, rat damage, bagworm and leaf eating caterpillars are done

x E2: Monitoring recorded and accessible, rat baiting census, rhinozerus beetle and caterpillars

4.5.3 Recording areas where pesticides have been used. MINOR compliance


x E1: Recorded in “Paroh Estate Spraying Costs Book”

x E2: In Cost Book Circle & Selective Spraying

4.5.4 Monitoring of pesticide usage per hectare or per ton e.g. total quantity of active ingredient (a.i) used/tonne of oil. MINOR compliance


x E1: Available in document “Paroh Estate Monitoring pesticide usage per hectare and per ton FFB production”

x E2: Clearly indicated, example FY 2013/2014 Sept: herbicide 0,05 kg a.i. / ha


58



Criterion 4.6: Agrochemicals are used in a way that does not endanger health or 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 Organisation Type 1A or 1B, or are listed by the Stockholm or Rotterdam Conventions, growers are actively seeking to identify alternatives, and this is documented.

4.6.1 Written justification in Standard Operating Procedures (SOP) of all chemicals in use. MAJOR compliance

x M: Pest Management done by internal contractor for Pest Control (Sime Darby Pest Management Services)

x E1: Stated in Section 15 of ARM (Agricultural Reference Manual - Table 1, 2, 3)

x E2: In EQMS, ARM and SOP’s covered

4.6.2

Pesticides selected for use are those officially registered under the Pesticides Act 1974 (Act 149) and the relevant provision (Section 53A); and in accordance with USECHH regulations (2000). MAJOR compliance


x E1: All pesticides purchases are centralized at HQ in Kuala Lumpur, hence tightly screened before purchase, check of records and visual assessment of PPP store

x E2: Visually checked in PPP store and record books and randomly compared with register; all pesticides used are approved by Sime Darby HQ

4.6.3 Pesticides shall be stored in accordance to the Occupational Safety and Health Act 1994 ( Act 514) and Regulations and Orders and Pesticides Act 1974 (Act 149) and Regulations. MAJOR compliance


x E1: PPP store is suitable, well lit and ventilated with appropriate warning signage; spillage kit is available and emergency shower and eye wash are functional and nearby

x E2: Observation 1: Eyewash facility not close to storage

Observation 2: no First Aid Kit at PPP storage


59




4.6.4

All information regarding the chemicals and its usage, hazards, trade and generic names must be available in language understood by workers or explained carefully to them by a plantation management official at operating unit/level. MAJOR compliance


x E1: Warning signage and MSDS information are well displayed; when interviewed, staff and workers acknowledged they are given training on PPP handling and usage; Malay, the local language, is understood by the foreign Indonesian workers

x E2: All datasheets, information fully available, relevant SOP and/or Signs available in respective languages English and Malay

4.6.5 Annual medical surveillance as per CHRA for plantation pesticide. MAJOR compliance


x E1: Annual medical surveillance is done for spray workers, apart from monthly medical check-up by medical assistant

x E2: More than 20 workers received medical checks since Jan. 2013; also complete file available for checks in 2012

4.6.6 No work with pesticides for confirmed pregnant and breast-feeding women. MAJOR compliance


x E1: Confirmed pregnant and breast feeding women are not allowed to work with pesticides; female workers are constantly reminded to inform their supervisor if they are pregnant; when interviewed, women sprayers acknowledge that they are aware

x E2: Written evidence, confirmed in SOP’s and while field visit (interview)


60




4.6.7 Documentary evidence that use of chemicals categorized as World Health Organization Type 1A or 1B or listed by the Stockholm or Rotterdam Conventionss and paraquat, is reduced and /or eliminated. Adoption of suitable economic alternative to paraquat as suggested by the EB pending outcome of the study on IWM. MINOR compliance


x E1: No evidence that Class 1a and 1b chemicals are used; Paraquat is disallowed to be used as company policy by Sime Darby

x E2: Communication issued by SD HQ regarding banned use of Paraquat and part of ARF / Section 16 in general and visual assessement of records and pesticides in PPP

4.6.8 Documented justification of any aerial application of agrochemicals. No aerial spraying unless approved by relevant authorizes. MAJOR compliance


x E1: No application for aerial application has been made

x E2: No aerial application

4.6.9 Evidence of chemical residues in CPO testing, as requested and conducted by the buyers. MINOR compliance

x M: No residue testing requested by clients (R&D Monitoring Program by Sime Darby)

E1: Not relevant at Estates level

x E2: Not relevant at Estates level

4.6.10

Records of pesticide use (including active ingredients used, area treated, amount applied per ha and number of applications) are maintained for either a minimum of 5 years or starting 2007. MINOR compliance


x E1: Records are kept in “Stock Issue Receipt & Transfer” document; all records are kept for at least 5 years, following company policy

X

E2: Information fully available – crosscheck of records


61



Criterion 4.7: An occupational health and safety plan is documented, effectively communicated and implemented.

4.7.1 Evidence of documented Occupational Safety Health (OSH) plan which is in compliance with OSH Act 1994 and Factory and Machinery Act 1967 (Act 139). MAJOR compliance

x M: OSH Plan available and implemented as below…: a) from April 2011, clearly displayed b) HIRARC for FY 2013/2014 – no changes c) fully implemented and recorded d) visually assessed at operations assessment e) (Chairman) Mill Manager Mr. Wan Mahadi Wan Yacoob f) Several meetings recorded, last September 2013 g) visually assessment clearly displayed h) Training records available (4persons), first aid boxes in place Observation: 1) First Aid Kits missing in Water Treatment Plant 2) Eye Wash facility at Chemical store does not work


62



4.7.1

Evidence of documented Occupational Safety Health (OSH) plan which is in compliance with OSH Act 1994 and Factory and Machinery Act 1967 (Act 139). MAJOR compliance

x

E1: a. Policy is in place. Displayed in master ground for public viewing b. Hazard Identification, Risk assessment and Risk control document is available c. Training programe for all levels of staff and workers for FY 2013/14 is available d. Use of PPE is compulsory for all involved PPE are provided to all employees. Confirmed through field inspection and interview with workers e. Manager approves all purchases of PPE with request coming in from supervisor through Assistant manager f. Meetings are held every 3 months between management and workers. Minutes of 4 Sep 2013 OSH Committee meeting was shown. g. Safety briefings are given to all visitors. Emergency Response Plan is displayed in master ground, canteen, guard house together with names of contact person and contact numbers h.Four persons have been trained in first aid i. First aid kits are located in 3 locations


63



4.7.1 Evidence of documented Occupational Safety Health (OSH) plan which is in compliance with OSH Act 1994 and Factory and Machinery Act 1967 (Act 139). MAJOR compliance

x

E2: a) from April 2011, clearly displayed b) HIRARC for FY 2013/2014 – no changes, singed Mill Manager Jan. 2013 c) fully implemented and recorded d) visually assessed at operations assessment e) (Chairman) Assistant Manager Mr. En Asmawi Hangsor f) Meetings recorded, last July 2013 g) visually assessment clearly displayed h) Training records available (14persons trained) Observation: 1) First Aid Kits missing at PPP storage 2) Eye Wash facility at Chemical store too far away from General store’s water source


64




4.7.2 Records should be of all accidents and periodically reviewed at quarterly intervals. MAJOR compliance

x M: Well recorded, 0 Accidents in FY 2012/2013 so far

x E1: Records PSQM-ESH Monthly updates are available and monitored by Manager- also sent to HQ

x E2: “Accident, Incident&NCR (non conformance rate)2013: 1 recorded for 4 days lost time

4.7.3 Workers should be covered by accident insurance. MAJOR compliance

x M: Covered by SOCSO, random check of contracts

x E1: Both local and foreign workers are covered by insurance schemes

x E2: SOCSO / insurance part of contract with workers

Criterion 4.8: All staff, workers, smallholders and contractors are appropriately trained.

4.8.1 A training programme (appropriate to the scale of the organization) that includes regular assessment of training needs and documentation, including records of training for employees are kept. MAJOR compliance

x M: Program implemented and assessed

x E1: Training program and records are available for both staff and workers

x E2: Training plan and training records checked – plan and records are consistent


65


Principle 5: Environmental Responsibility and Conservation of Natural Resources and Biodiversity


Criterion 5.1: Aspects of plantation and mill management, including replanting, that have environmental impacts are identified, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continuous improvement.

5.1.1 Documented aspects and impacts risk assessment that is periodically reviewed and updated. MAJOR compliance

x M: HIRARC done FY 2012/2013 in a comprehensive way, brief declaration for FY 2013/2014 by management does state, that the recent one done in 2012 is still valid because no actual changes in entire operation (signed Mr. Wan Mahadi, 05.07.2013)

x E1: Environmental Aspect & Impact risk assessment has been done and documented; it is periodically updated and reviewed (annually) - last version of document for FY 2013/2014 is avaiable

x E2: Environmental Aspect and Impact risk assesment has done and documented; annualy updated with FY 2013/2014

5.1.2 Environmental improvement plan to mitigate the negative impacts and promote the positive ones, is developed, implemented and monitored. Minor compliance

x M: Environmental Improvement Plan done on base of annual “Environmental Impact Evaluation” and related to QMS respective part for continuing improvement

x E1: Environmental Improvement Plan & Pollution Preventive Plan is available; implementation has shown specific tasks such as construct containment at chemical mixing, re-construct oil trap, etc

x E2: Environmental Improvement Plan, Pollution Prevention Plan available, some program and activities were listed to mitigate the negative impacts, progress of program is monitored

5.1.2 Environmental improvement plan to mitigate the negative impacts and promote the positive ones, is developed, implemented and monitored. MINOR compliance

x M: As above

x E1: As above

x E2: As above


66



Criterion 5.2: The status of rare, threatened or endangered species (ERTs) and high conservation value habitats, if any ,that exists 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 .

5.2.1 Identification and assessment of HCV habitats and protected areas within landholdings; and attempt assessments of HCV habitats and protected areas surrounding landholdings. MAJOR compliance


x E1: Biodiversity Baseline Assessment for Paroh Estate was conducted in June 2009 together with other Estates in SOU 34 Pekaka; there are 30 ha river buffer zone (HCV 4), 2,5 ha Water catchement pond (HCV 4), 39,5 ha biodiversity area /steep area (HCV 4)

x E2: Biodiversity Baseline Assessment for Dulang Estate also has been done in June 2009 with other Estates of SOU 34; Clear indication of 25 ha of river buffer zone as HCV 4, 1 acre of water catchment pond as HCV 4, 0,5 worship area (mosque) as HCV 6.

5.2.2 Management plan for HCV habitats (including ERTS) and their conservation. MAJOR compliance


x E1: Biodiversity Action Plan FY 2013/2014 is available; implementation evidence is recorded

x E2: Biodiversity Action Plan FY 2013/2014 is also available for Dulang Estate; no ERT species are found in Dulang estate

5.2.3 Evidence of a commitment to discourage any illegal or inappropriate hunting fishing or collecting activities, and developing responsible measures to resolve human-wildlife conflicts. MINOR compliance


x E1: Biodiversity Action Plan for FY 2013/2014 - implementation evidence is recorded

x E2: Implemented according to Biodiversity Baseline Assessment and Action Plan, during the visit, No ERT species were sighted


67



Criterion 5.3: Waste is reduced, recycled and re-used and disposed off in an environmentally and socially responsible manner.

5.3.1 Documented identification of all waste products and sources of pollution. MAJOR compliance

x M: PPP for FY 2013/2014 in place, also a Waste Management Plan again for 2013/2014

x E1: Waste products and sources of pollution in Paroh Estate have been identified such as schedule waste, domestic waste and industrial waste (waste products)

x E2: Identification of waste products and sources of pollution was done and is documented; the identified wastes are including schedule waste, domestic waste, and industrial waste

5.3.2 Having identified waste and pollutants, an operational plan should be developed and implemented, to avoid or reduce pollution. MINOR compliance

(x) M: Plan available and implemented so far Observation: in the area of metal scrap also other metal oil barrels (empty but not cleaned) are around in that particular place separate these oil barrels and other scheduled waste from metal scrap

x E1: Pollution Prevention Plan for Paroh Estate FY 2013/2014 is available, documents are updated periodically; schedule waste is collected in schedule waste store and disposed to authorized collector (wasteway Sdn Bhd) -tThe amounts are recorded by store keeper

x E2: Waste Management Action Plan and Pollution Prevention Plan for FY 2013/2014 at Dulang Estate is available; schedule waste is disposed to licensed collector (wasteway SDN. BHD) such as used oil, empty chemical container, etc.

5.3.3 Evidence that crop residues/biomass are recycled MINOR compliance

x M: EFB composting program

x E1: EFB application for composting, frond staking around palm tree as organic fertlizer

x E2: Composted EFB used for fertilization, frond staking around palm tree, EFB application for mulching


68



Criterion 5.4: Efficiency of energy use and use of renewable is maximized.

5.4.1 Monitoring of renewable energy use per tonne of CPO or palm product in the mill. MINOR compliance

x M: Fibers and shells taken for burning and heating the steam-oven (Diesel only used for starting boilers and production-process)

x E1: Not applicable for the Estate


5.4.2 Monitoring of direct fossil fuel use per tonne of CPO or kW per tonne nof palm product in the mill (or FFB where the grower has no mill). MINOR compliance

x M: Well maintained records- usage at the moment (Sept.2013) is 3,1 l/t FFB




69



Criterion 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 Guidance or other regional best practice.

5.5.1 No evidence of open burning. Where controlled burning occurs, it is as prescribed by the Environmental Quality (Declared Activities (Open Burning) Order 2003. MAJOR compliance


x E1: Field check showed that there is no evidence for open burning at replanting activities; Sime Darby’s Policy is not allowed for open burning

x E2: During field visit, no evidence for open burning in the replanting area found - according to Sime Darby’s zero burning policy

5.5.2 Previous crop should be felled/mowed down, chipped/shredded, windrowed or pulverized/ploughed and mulched. MINOR compliance


x E1: So far there is no report and evidence of disease for the crop hence it is felled/mowed down and shredded

x E2: No findings of highly diseased crop within the Estate; currently all replanting activities were done by fellling, chipping and shredding

5.5.3 No evidence of burning waste (including domestic waste). MINOR compliance

x M: no evidence, visual assessment

x E1: By Sime Darby’s Policy for zero burning and no evidence of waste burning

x E2: No evidence for burning waste durin field checking


70



Criterion 5.6: Plans to reduce pollution and emissions, including greenhouse gases, are developed, implemented and monitored.

5.6.1 Documented plans to mitigate all polluting activities (cross ref C 5.1). MAJOR compliance

x M: Pollution Prevention Plan generated and implemented widely – however an Observation occurred at the metal waste area – still some schedule waste stored there (e.g. empty oil barrels)

x E1: Waste Management Action Plan and Pollution Prevention Plan for Paroh Estate FY 2013/2014 are available

x E2: Pollution Prevention Plan and Management Action Plan for FY 2013/2014 generated

5.6.2 Plans are reviewed annually. MINOR compliance

x M: Annual plan available, reviewed 01.07.2013

x E1: Pollutants and emissions were identified in the enviromental aspect and impact identification document; Waste Management Action Plan and Pollution Prevention Plan for Paroh Estate and FY 2013/2014 are available, documents updated annually

x E2: Waste Management Action Plan and Pollution Prevention Plan is updated and reviewed each year

5.6.3 Monitor and reduce peat subsidence rate through water table management (within range specified in C 4.3). MINOR compliance


x E1: No peat land in Paroh Estate

x E2: Water Table Monitoring and Water Management is well conducted and recorded periodically as shown in visual assessment Observation: records for peat subsidence rate monitoring itself is not implemented


71


Principle 6: Responsible Consideration of Employees and of Individuals and Communities by Growers and Millers


Criterion 6.1: aspects of plantation and mill management, including replanting, that have social impacts are identified in a participatory way, plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continuous improvement.

6.1.1 A documented social impact assessment including records of meetings. MAJOR compliance

x M: SIA done 2009, last updated 01.07.2013

x E1: Social Impact Assessment (SIA) with basic stakeholder consultation in 2009; additional ones have been done in August and September 2013 and were fully documented

x E2: SIA done in July 2009, stakeholder meeting is scheduled for late October as pointed out above (see 1.1)

6.1.2 Evidence that the assessment has been done with the participation of affected parties. MINOR compliance

x M: Observation: Actual Assessment done in 2009 with stakeholder meeting, however an additional stakeholder meeting is planned and scheduled already for last week October in order to follow the recommendation of first ASA carried out in 2012 – see also 1.1

E1: As mentioned in 6.1.1

x E2: Observation: Same as in Mill – see also 1.1

6.1.3 A timetable with responsibilities for mitigation is reviewed and updated as necessary. MINOR compliance

x M: As far as current internal evaluation (01.07.2013) shows, there is a (partly very general) timeframe mentioned in the document – however upcoming stakeholder meeting shall prove feasibility

x

E1: Management plan related to SIA for FY 2013/2014 is available, includes time frames and responsible persons

x E2: The action plan of the SIA is available for FY 2013/2014 with the time table and responsible person for implementing it


72



Criterion 6.2: There are open and transparent methods for communication and consultation between growers an d/or millers, local communities and other affected or interested parties.

6.2.1 Documented consultation and communication procedures. MAJOR compliance

x M: In MQMS (Mill QMS) - 8.5.1

x E1: Procedures for external communication are stated in Standard Operation Manual - Appendix 5.5.3.2 Version 1

x E2: Procedure for external (and internal) communication is available - included in Standard Operating Manual App. 5.5.3.2, Version 1

6.2.2 A nominated plantation management official at the operating unit responsible for these issues. MINOR compliance

x M: Mill Manager Mr. Wan Mahadi

x E1: Mr. MohdKhairil Bin Ramli was appointed to be responsible for social issues

x E2: Appointed person for social concerns is Mr. Muhammad Suffian Bin Ainudin

6.2.3 Maintenance of a list of stakeholders, records of communication and records of actions taken in response to input from stakeholders. MINOR compliance

x M: List is in place and containing internal and external contacts (– upcoming stakeholder meeting still pending as previously mentioned- see 1.1)

x E1: List of stakeholders of Paroh Estate is presented. The list include contractors/supplier, local community/indegenous people (Iban), intereseted parties; 2 stakeholder meetings in August and September well documented

x E2: The list of stakeholders is availble – does include contacts of

local community, suppliers, contractors and other interested

parties; however the stakeholder meeting is still pending –

scheduled for October 2013


73



Criterion 6.3: There is a mutually agreed and documented system for dealing with complaints and grievances, which is implemented and accepted by all parties.

6.3.1 Documentation of the processes by which a dispute was resolved and the outcome . MAJOR compliance

x M: As in Procedures and as documented in complaint book, visually assessed for 2012/2013

x E1: Procedure for disputes is available; internal and external complaint book also availble, so far no disputes obvious

x E2: Procedure for disputes is stated in SPMS (Sustainable Plantation Management System) Appendix 5 - Flow Chart and procedures on handling social issues incl. Appendix 3 for handling land disputes; so far no dispute in Dulang Estate with local community or workers evident

6.3.2 The system resolves disputes in an effective, timely and appropriate manner. MINOR compliance

x M: Explained and clarified in interview on recorded issues in complaint book, internal complaints raised and documented only, all could be solved appropriately as per interview)

x E1: No indications that some disputes in the complaint records were not followed up accordingly, no issues pending

x E2: So far no relevant and current disputes in Dulang Estate evident, records show a well implemented system to resolve them

6.3.3 The system is open to any affected parties. MINOR compliance

x M: Open to anyone (internally and externally)

x E1: System is open for negotiation, at the moment no complaint from affected parties

x E2: So far no disputes in Dulang Estate, negotiation is basically welcome when indicated and open to any affected parties


74



Criterion 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.

6.4.1 Establishment of a procedure for identifying legal and customary rights and a procedure for identifying people entitled to compensation. MAJOR compliance

x M: Not applicable at Mill

x E1: It is covered in Procedure and System for land dispute in SPMS (Sustainable Plantation Management System) Appendix 5- Flow Chart and procedure on handling social issues, Appendix 3 for handling land disputes, no NCR land inside Paroh Estate

x E2: SPMS does cover with specific Appendices (related to social issues and for handling of land disputes); no NCR on land-conflicts evident inside Dulang Estate

6.4.2 A procedure for calculating and distributing fair compensation (monetary or otherwise) is established and implemented. This takes into account gender differences in the power to claim rights, ownership and access to land; and long-established communities; differences in ethnic groups’ proof of legal versus communal ownership of land.

MINOR compliance


x E1: Procedure part of SPMS (Plantation Sustainable Management System), again Appendix 3 & 5, no evidence of any kind disputes with local community

x E2: According SPMS as previously mentioned, no disputes recorded or evident

6.4.3 The processes and outcome of any compensation claims is documented and made publicly available. MINOR compliance


x E1: As stated above

x E2: Same as above


75



Criterion 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.

6.5.1 Documentation of pay and other conditions. MAJOR compliance

x M: At the moment 81 workers (32 Indonesian- rest is local -without management consisting of 28 staff; equal conditions as in contracts and payslips

x E1: The workers have individual contract and are signed by both (the workers and estate manager); the payment and other condition meet at least legal or industry minimum standards and are sufficient to provide decent living wages; example: Mr. Antonius as harvester received MYR 1,297.22(above the standard : MYR 900)

x E2: The contracts/agreements for all worker are available; a specific payslip is provided, e.g. for Mr. Iwan (harvester from indonesia), he received MYR 1.483 in September 2013 (above Sarawak industrial wage standard MYR 900)

6.5.2 Labor laws, union agreements or direct contracts of employment detailing payments and conditions of employment (e.g. working hours, deductions, overtime, sickness, holiday entitlement, maternity leave, reasons for dismissal, period of notice, etc) are available in the language under-stood by the workers or explained carefully to them by a plantation management official in the operating unit. MINOR compliance

x M: According Labor Ordinance Sarawak (although no Unions registered), working contracts checked; 8hours 6 days a week – Sunday off

x E1: The contract/agreement detailing payment and condition of

employment such as working hours, salary, leave, holiday, etc) is

available for all workers and found complying although no Union

in Sarawak

x E2: To be found in the contract documents of workers containing the condition of employment such as salary, allowances, working hours, hoildays, maternity leave for female worker, overtime, sickness, etc.


76



Criterion 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.

6.5.3 Growers and millers provide adequate housing, water supplies, medical, educational and welfare amenities in accordance Workers’ Minimum Standard of Housing and Amenities Act 1990 9act 446) or above, where no such public facilities are available or accessible (not applicable to smallholders) . MINOR compliance

x M: Housing facilities jointly built for Dulan’s and Mill’s workers ; inspection within audit of Dulan Estate

x E1: Sime Darby policy has a good family/worker housing standard: 3 rooms, toilett and kitchen room, free water supply, free electricity, free medical service, free education for children, sport facility, etc.

x E2: Based interview with workers and visual assessment, housing, water, electricity, medical, eductaion for children and welfare amenities are sufficient and well provided by Sime Darby


77



Criterion 6.6: The employer respects the right of all personnel to form and join trade unions of their choice and to bargain collectively. Where 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.

6.6.1

Documented minutes of meeting with main trade unions or workers representative. MAJOR compliance

x M: Minutes of weekly Friday Muster Meeting available (workers representative is Mr. En, Wahab bin Aris)

x E1: Although there is no Union in Sarawak, there is are meetings between management and workers every 3 months; minutes are documented (part of OHS meetings); last meeting was held on 04th September 2013, attended by 17 participants

x E2: Relevant issues also discussed in OHS meetings to accomodate workers and management communication; held every three months - the latest one was conducted on 04th October 2013 - workers representaive is Mr. Ahmad Fauzi Rejo

6.6.2 A published statement in local languages recognizing freedom of association. MINOR compliance

x M: Freedom of association clearly displayed , however no Unions existent in Sarawak

x E1: Social policy is available that includes statement in local languange recognizing freedom of association / no Union organized here

x E2: Sime Darby Social Policy with statement for recognizing freedom of association is a available and also displayed in public area (muster ground and office), however as previously already explained there is no Union in Sarawak


78



Criterion 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 programmes. Children are not exposed to hazardous working condition .

6.7.1 Documented evidence that the minimum age requirement is met. MAJOR compliance

x M: 18 is minimum age for Sime Darby workers, no evidence of younger workers in documents or at operations assessment

x E1: Youngest worker found in Paroh Estate according to master list of employee is 19 years old; (Goverment standard 16 years of age, Sime Darby Policy is minimum 18 years of age

x E2: Checking the master list of employees it was found that the youngest worker is 18 years old (born 12/05/1995), meets with goverment standard (16 years) and with Sime Darby Policy (18 years)


79



Criterion 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.

6.8.1 A publicly available equal opportunities policy. MAJOR compliance

x M: Gender Policy available and displayed in front of office and musterground

x E1: Social policy is available that covers statement of equal opportunities and is displayed in public area (office and musterground)

x E2: Equal Opportunities Policy and Social Policy is a publicly available - displayed in office area and muster ground

6.8.2 Evidence that employees and groups including migrant workers have not been discriminated against. MINOR compliance

x M: No discrimination evident neither in documents, contracts or at assessment, moreover part of internal policies – as also displayed

x E1: No evidence of discrimintation including for migrant workers (based on interview with the workers)

x E2: Based on inteview with the worker, so far no evidence for discrimination also not for migrant workers


80



Criterion 6.9: A policy to prevent sexual harassment an all other forms of violence against women and to protect their reproductive rights is developed and applied .

6.9.1 A policy on sexual harassment and violence and records of implementation. MAJOR compliance

x M: Sime Darby Policy is implemented (as per interview and records), displayed in front of office and musterground, hence also publicly available

x E1: Gender policy is available and displayed in public area including policy for sexual harassment

x E2: As part of company policy for gender issue in Gender Policy statement, no sexual harrassment; so far no report for sexual harrassment case from female worker

6.9.2 A specific grievance mechanism is established. MAJOR compliance

x M: Complaint procedures and complaint book available and accessible

x E1: Grievance mechanism according to gender policy and Gender manual are established; Gender commitee is headed by Mrs. Teda Anak Sandai

x E2: Grievance mechanism is stated in Gender manual; the Gender commitee is availabble and headed by Ms. Kimberly Simpo A/P Loreta, so far no grievance evident


81



Criterion 6.10: Growers and millers deal fairly and transparently with smallholders and other local businesses .

6.10.1 Pricing mechanisms for FFB and inputs/services shall be documented. MAJOR compliance

x M: Internal mechanism within Sime Darby’s arrangements

x E1: No FF bought from small holders, current prices of FFB not relevant because internally delivered to mill

x E2: Not relevant for Estate of Sime Darby (no external supply from other parties)

6.10.2 Current and past prices paid for FFB shall be publicly available. MINOR compliance

x M: As above - at the moment, information on current price for CPO by MPOB available (487,62 on OER of 21%)

x E1: Not applicable (no external FFB supply)

x E2: Not relevant for Estate (no external FFB supply)

6.10.3 Evidence that all parties understand the contractual agreements they enter into, and that the contracts are fair, legal and transparent. MINOR compliance

x M: Contractual agreements clear because exclusively between Sime Darby operations only



6.10.4 Agreed payments shall be made in a timely manner. MINOR compliance

x M: as above




82



Criterion 6.11: Growers and millers contribute to local sustainable development wherever appropriate.

6.11.1 Demonstrate contributions to local development that are based on the results of consultation with local communities. MINOR compliance

x M: so far mainly internal activities for workers (5kg oil & 5 kg rice), monthly provided on pre-paid base for RM 5 per month, and several internal beneficial and activities and incentives (e.g. family day, divers celebrations and festivals, etc.); also donation to a longhouse development project near to Pekaka Mill

x E1: Contribution to local development via CSR program such as : - Bus school for workers children - Humana school (for foreigner workers) - Rice and cooking oil allowance - Blood donation - Religion day celebration

x E2: Contribution to local development via CSR program such as : - Humana school (for foreigner workers) - Rice and cooking oil allowance - Provide Van for school transportation - Blood donation - Religion day celebration


83


Principle 7: Responsible Development of New Plantings


Criterion 7.1: A comprehensive and participatory independent social and environmental impact assessment is undertaken prior to establishing new plantings or operations, or expanding existing ones, and the results incorporated into planning, management and operations.

7.1.1 An independent and participatory social and environmental impact assessment (SEIA) to be conducted and documented ( Cross ref to 7.2, 7.3, 7.4, 7.5, 7.6. MAJOR compliance


x E1: Not applicable at audited Estate


7.1.2 The results of the SEIA to be incorporated into an appropriate management plan and operational procedures developed, implemented, monitored and reviewed. MINOR compliance




7.1.3 Where the development includes smallholder schemes of above 500ha in total, the impacts and implications of how it is managed should be documented and a plan to manage the impacts produced . MINOR compliance





84


Criterion

Yes No n.a Remarks

Criterion 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.

7.2.1 Soil suitability maps or soil surveys adequate to establish the long-term suitability of land for oil palm cultivation should be made available. MAJOR compliance




7.2.2 Topographic information adequate to guide the planning of drainage and irrigation systems, roads and other infrastructure should be available. MINOR compliance





85


Criterion

Yes No n.a Remarks

Criterion 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.

7.3.1 An HCV assessment, including stakeholder consultation, is conducted prior to any conversion. MAJOR compliance




7.3.2 No conversion of Environmentally Sensitive Areas (ESAs) to oil palm as per Peninsular Malaysia National Physical Plan (NPP) and Sabah Forest management Unit under the Sabah Forest Management License Agreement. MAJOR compliance




7.3.3 No new plantings on floodplains (reference made to State DID). MAJOR compliance




7.3.4 Dates of land preparation and commencement are recorded. MINOR compliance





86



Criterion 7.4: Extensive planting (to be determined by SEIA) on steep terrain, and /or marginal and fragile soils, is avoided.

7.4.1 All new plantings should not be cultivated on land more than 300m above sea and on land more than 25 degrees slope unless specified by local legislation (Ref: MSGAP Part 2: OP 4.4.1.3 & 4.4.1.4). MAJOR compliance




7.4.2 Where planting on fragile and marginal soils is proposed, plans shall be developed and implemented to protect them without incurring adverse impacts (e.g. hydrological) or significantly increased risks (e.g. fire risk) in areas outside the plantation. MINOR compliance





87



Criterion 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.

7.5.1 This activity should be integrated with SEIA required by C 7.1. MAJOR compliance





88



Criterion 7.6: Local people are compensated for any agreed land acquisitions and relinquishments of rights, subject to their free, prior and informed consent and negotiated agreement.

7.6.1 Documented identification and assessment of legal and customary rights. MAJOR compliance




7.6.2 Establishment of a system for indentifying people entitled to compensation. MAJOR compliance




7.6.3 This activity should be integrated with SEIA required by C 7.1 MAJOR compliance




7.6.4 Establishment of a system for calculating an distributing fair compensation (monetary or otherwise). MAJOR compliance




7.6.5 The process and outcome of any compensation claims should be documented and made publicly available. MAJOR compliance




7.6.6 Communities that have lost access and rights to land for plantation expansion are given opportunities to benefit from plantation development. MINOR compliance





89



Criterion 7.7: Use of fire in the preparation of new plantings is avoided other than in specific cases as identified in the ASEAN Guidance or other regional best practice .

7.7.1 No evidence of clearing by burning. This activity should be integrated with the SEIA required by C 7.1. MAJOR compliance




7.7.2 Evidence of approval for controlled burning as per Environmental Quality (Declared Activities0 (Open Burning) Order 2003. MAJOR compliance





90


Principle 8: Commitment to Continuous Improvement in Key Areas of Activity


Criterion 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.

8.1.1 Minimise use of certain pesticides (C 4.6). MAJOR compliance

x M: Not applicable at mill

x E1: Generally implementation of IPM practice, specifically e.g. by use of beneficial plants, barn owls, ban of Paraquqat, etc.

x E2: Well implemented IPM meausres throughout the operation as stated above in Principle 4

8.1.2 Environmental impacts (C 5.1). MAJOR compliance

x M: As far as pointed out in EIA and update for FY 2013/2014

x E1: Environmental aspects and impacts identified, updated and reviewed every year

x E2: AS stated above, the environmental aspect and impact are identificatied, reviewed and updated annually

8.1.3 Maximizing recycling and minimizing waste or by-products generation. MAJOR compliance

x M: As far as practical situation does allow (e.g. composting and power/heat generation)

x E1: Reducing waste by re-use and establishment of recycling programs - implementation visible at audit

x E2: Implementation of respective and generated programs assessed and found complying (as stated above)


91



Criterion 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.

8.1.4 Pollution prevention plans (C 5.3) MAJOR compliance

x M: Available and updated

x E1: Pollution Prevention Plan is established (as above mentioned already), updated every year

x E2: Annual update of Pollution Prevention Plan, implementation checked at asssessment of operation – as documented in respective criteria above

8.1.5 Social impacts 9C 6.1). MAJOR compliance

x M: Social Impact Assessment available, updated and implemented

x E1: Social impact assessment is available, the social program is updated and reviewed every year

x E2: Annual review and update of the social program was assessed (based on the social impact assessment) and found complying

8.1.6 A mechanism to capture the performance and expenditure in social and environmental aspects. MINOR compliance

x M: as pointed out in previous chapter: internal and external activities do prove compliance

x E1: Performance and expenditure annually reviewed by internal assessments of the Estate itself and also by Sime Darby HQ

x E2: Review of environmental and social plan recorded every year, internal audit mechanism on Estate level and on HQ level


92


3.2 Identified Non-Conformances and Noteworthy positive comments

NC/O

Nr.

Criterion

Non Conformance [NC]

Observation [O], Comment [C]

Corrective Action Implementation

required until

1

(O)

1.1.1

&

6.1.2

Oil Palm growers provide

adequate information to

other stakeholders on

environmental, legal and

social issues relevant to

RSPO criteria, in

appropriate languages &

forms to allow for

effective participation in

decision making.

Observation:

Pekaka Mill and Estate Dulang: The mill is closely operative

coordinated with Estates Dulang

The actual joint stakeholder meeting

(as pointed out in the ASA 2012) had

to be scheduled for October 2013

(second half) due to organizational

reasons

Recommendation:

Finalize Stakeholder Meetings as

scheduled

Max. 3rd

Surveillance Audit

2

(O)

4.3.4

&

5.6.3

Subsidence of peat soils

should be minimized

through an effective and

documented water

management

programme.

Observation:

Estate Paroh: Water table

management is implemented and

well recorded; however there is a

Recommendation:

It is a recommendation by the

environmental auditor to also

define the kind of peat in the

specific area and measure the

peat depth (e.g. with subsidence

poles) in order to avoid

assumptions, having actual

measurements and record the

actual (also partly natural)

subsidence rate

Recommendation

only


93


NC/O

Nr.

Criterion




required until

3

(O)

4.6.3 Pesticides shall be stored

in accordance to the

Occupational Safety and

Health Act 1994 ( Act

514) and Regulations and

Orders and Pesticides Act

1974 (Act 149) and

Regulations.

MAJOR compliance

Observations:

Estate Dulang:

Observation 1: Eyewash facility not

close to storage

Observation 2: no First Aid Kit at

PPP storage

Recommendation:

Install these facilities in mentioned

locations

3rd Surveillance

Audit

4

(O)

4.7.1 Evidence of documented

Occupational Safety

Health (OSH) plan which

is in compliance with OSH

Act 1994 and Factory

and Machinery Act 1967

(Act 139).

MAJOR compliance

Observations:

Mill: 1) First Aid Kits missing in Water

Treatment Plant

2) Eye Wash facility at Chemical store

does not work

Estate Dulang: 1) First Aid Kits missing at PPP storage

2) Eye Wash facility at Chemical store

too far away from General store’s

water source

Recommendation:

Install & repair these facilities in

mentioned locations

3rd Surveillance

Audit

5

(O)

5.3.2 Having identified waste

and pollutants, an

operational plan should

be developed and

implemented, to avoid or

reduce pollution.

MINOR compliance

Observation:

In designated area of metal scrap

also other metal oil barrels (empty

but not cleaned) are around in

that particular place

Recommendation:

Separate and dispose these oil

barrels and other scheduled waste

accordingly

3rd Surveillance

Audit


94


NC/O

Nr.

Criterion




required until

6

(C)

General Performance of audited

Unit

Comment

The audit did prove that all

Observations and NC’s from first

Surveillance Audit were complete

and professionally implemented

- -

3.3 Issues raised by stakeholders

As mentioned in 2.5 (Outlinie of how stakeholder consultation was managed) already a general Stakeholder Consultation was conducted 31st

July 2009, however not only for Komplex Lavang but also for neighbouring SOU’s at the same time and place. Within the report no major non

compliances were found.


95


4. Certified organisation’s acknowledgedgement of internal responsibility

4.1 Formal sign-off of assessment findings

Addtional comments by Auditors

1. The entire Audit Team likes to thank Sime Darby Management, all staff and workers of Komplex Pekaka for a very constructive

cooperation and for their hospitality throughout the entire audit!

2. -

Lead Auditor, Matthias Grill

Place, Name, Date and Signature

Enzersfeld, Version final, 12.12.2012

Matthias Grill

Original Version confirmed by Audit Team Kuala Lumpur, 12.12.2013 Cecep Saepulloh (electronically confirmed)

Chan Han Hee(electronically confirmed)


96


5. Annexes

5.1 Report Confirmations

5.1.1a Report Confirmation - Client

The representative person of the audited entity has acknowledged this report and likes to:

1. confirm this result by signature: Place, Name, Date

und Signature

…………………………, ……………….., ……………………………………..

or

2. confirm this result by signature and make

additional comments to it (see table 9.2

below)

Place, Name, Date

und Signature

…………………………, ……………….., ……………………………………..

or

3. reject this report and will further more not

accept audit results

(Comments, complaints and justifications

may be added at table 5.1.1b below)

Place, Name, Date

und Signature

…………………………, ……………….., ……………………………………..


97


5.1.1b Supplementary Comments, suggestions (or) complaints by audited entity or any other invicted party

Nr. Comment Concerning Justification / Suggested action to be taken

1

2

3

4

5

6

7

8

9

10


98


5.1.2 Report Confirmation – Certification Department

The Certification Officer has acknowledged this report and likes to:

1. confirm this result by signature:

Mag. Klaus Guger, Dwi Rahmad Muhtaman

Place, Name, Date

und Signature

or

2. disagree on audit report and is asking for

additional action to be taken: Ort, Name, Datum

und Unterschrift

…………………………, ……………….., ……………………………………..

Nr. Additional action Comment Responsibilities and time frame

1

2

and

3. finally to confirm the result after all relevant

and additional corrective actions have

been closed out (including Lead Auditors

re-confirmation) and signalizes compliance

for issuance of certificate

Ort, Name, Datum

und Unterschrift

…………………………, ……………….., ……………………………………..


99


5.2 Divers Attachements, Supplementary Documents and others…

No. Kind of Attachement Issued by Concerning

A1 Presentation of Komplex Pekaka Sime Darby / Komplex Pekaka Presentation on history, structure and operational

data summarized in a power point presentation

A2 Checklists of Audit Auditor Team Checklist of each audited operation

A3 Time Bound Plan Sime Darby Actual Time Bound Plan of Sime Darby covering

all certified units - issued in 2013

A4 - - -

A5 - - -

A6 - - -

A7 - - -

A8 - - -

A9 - - -

A10 - - -


100


5.3 Abbreviations

ASI Accreditation Body

CB Certification Body

CHRA Chemical Health Risk Assessment

CPO Crude Palm Oil

DID Department of Irrigation and Drainage

EFB Empty Fruit Bunches

FASSB Felda Agricultural Services Sdn Bhd

FM Felda Management

FTP Felda Techno Plant

FFB Fresh Fruit Bunches

GAP Good Agricultural Practice

HCV High Conservation Value

HQ Head Quarter

IPM Integrated Pest Management

LORR Legal and other Requirements Register

QMS Quality Management System

QM Quality Management

MPOB Malaysian Palm Oil Board


101


mt metric tonn

NC Non Conformance

O Observation

PKO Palm Kernel Oil

PPP Plant Protection Product

p.a. per annum

SIA Social Impact Assessment

SOP Standard Operating Procedures

SOCSO Social Security Organization

RSPO SURVEILLANCE AUDIT REPORT · RSPO SURVEILLANCE AUDIT REPORT ... 2.1 Assessment methodology...

Documents

Transcript of RSPO SURVEILLANCE AUDIT REPORT · RSPO SURVEILLANCE AUDIT REPORT ... 2.1 Assessment methodology...