rspo certification assessment public summary report€¦ · perkantoran hijau arkadia tower f, 7th...

PT. TÜV NORD Indonesia

Audit Report

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Univanich AUDIT REPORT CA-Lamthap mill and its supply base (28.4.2013) of 53

RSPO CERTIFICATION ASSESSMENT

PUBLIC SUMMARY REPORT


System Certification Management

Has assessed

UNIVANICH PALM OIL PUBLIC COMPANY LIMITED

Lamthap Mill and its Supply Bases

for Compliance to RSPO Principles and Criteria

for Sustainable Palm Oil Production

Date of assessment:

October 8 - 12, 2012

Report Number: P&C-J-126

Head Office

System Certification Management

Perkantoran Hijau Arkadia Tower F,

7th Fl Suite 706

Jl. Let. Jend. TB Simatupang Kav. 88

Jakarta 12520 – Indonesia

Tel : +6221 7883 7338

Fax : +6221 7883 7336

Laboratory Division

Jl. Jababeka XVII E Blok U No. 27B

Kawasan Industri Jababeka I Cikarang Bekasi 17530 – Indonesia

Tel : +6221 898 403 18 – 19

Fax : +6221 898 403 20

Branch Office

Intiland Tower 11th

Fl, Suite 1E

Jl. Panglima Sudirman 101-103

Surabaya 60271 - Indonesia

Tel : +6231 53 444 54

Fax : +6231 53 4 44 82

President Director:

Mr. Robert Napitupulu

Email: [email protected]

Website: www.tuv-nord.com or www.tuev-nord.de

mailto:[email protected]

http://www.tuv-nord.com/

http://www.tuev-nord.de/


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List of Contents

1 Scope of The Certification Assessment ........................................................................................................... 4

1.1 Type of Assessment (Mill, Estate and Mill, etc.) .................................................................................. 4

1.2 Location of mill and estates ................................................................................................................ 4

1.3 Description of Mills and Its Supply Bases (Fruit Sources) ................................................................... 7

1.3.1 Description of Mill(s) .............................................................................................................. 7

1.3.2 Description of Supply Bases (Fruit Sources) .......................................................................... 7

1.3.3 Time-bound plan…………………………………………………………………………………..8

1.4 Date of Planting and Cycle ................................................................................................................. 8

1.4.1 Year of planting for 3 estates during 1985-2011 ..................................................................... 8

1.4.2 Five year replanting program for each estate from 2013-2017. ............................................. 8

1.5 Other Certifications Held (ISO, etc.) ................................................................................................... 9

1.6 Organizational Information/Contact Person ........................................................................................ 9

1.7 Tonnages to be certified ..................................................................................................................... 9

2 Assessment Process ...................................................................................................................................... 9

2.1 Assessment Methodology (Program, Site Visits) ................................................................................ 9

2.1.1 General Overview .................................................................................................................. 9

2.2 Date of Next Surveillance Visit ......................................................................................................... 12

2.3 Lead Assessor/Assessment Team ................................................................................................... 12

2.3.1 Lead Assessor: Chaiyaporn Seekao .................................................................................... 12

2.3.2 Assessment Team Members ............................................................................................... 14

2.4 Certification Body ............................................................................................................................. 16

2.5 Outline of How Stakeholder Consultation Was Managed .................................................................. 17

2.5.1 Summary ............................................................................................................................. 17

2.5.2 List of Contacted Stakeholders ............................................................................................ 18

3 Assessment Findings .................................................................................................................................... 19

3.1 Summary of the Findings by Criteria ................................................................................................. 19

3.2 Identified Non Conformances ........................................................................................................... 40

3.2.1 Detail of Non Conformity ...................................................................................................... 40

3.2.2 Resume of Audit Results ..................................................................................................... 45

3.3 Issues Raised by Stakeholders ........................................................................................................ 45

4 Certified Organization’s Acknowledgement of Internal Responsibility ............................................................ 47

4.1 Formal Sign-off of Assessment Findings .......................................................................................... 47


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List of Figures

Figure 1-1 Location of Siam mill and its supply bases ............................................................................................... 5

Figure 1-2 Geographical Map of Lamthap Estate ...................................................................................................... 6

Figure 2 Replanting implementation………………………………………………………………………………………………………….. 23

Figure 3 Fertilizer application by using spraying machine in the estate …………..……………………………………… 24

Figure 4 Practices to maintain and restore soil fertility by putting FFB and U-stacking of pruned………………. 25

fronds in the palm inter-row

Figure 5 The reused of POME in the estate thought furrows and pumping station…………...………………………..26

Figure 6 Weir construction to store rainwater at Lamthap estate……………………………………………………………..…. 27

Figure 7 Barn owl propagation for biological rat control………..…………………………………………………….. 29

Figure 8 Personal safety equipment for worker who sprays agrochemical…………………………… …………… 30

List of Tables

Table 1-1 List of independent grower ........................................................................................................................ 7

Table 1-2 Description of supply base (fruit sources) ................................................................................................ 8

Table 2-1 Audit Schedule ......................................................................................................................................... 11

Table 2-2 List of Stakeholder surrounding TOPI mill and its supply bases ............................................................. 18

Table 3-1 Summary of Findings by Criteria ............................................................................................................. 20

Table 3-2 Resume of Audit Results ......................................................................................................................... 45

Table 3-3 RSPO Supply Chain Standard for Mill ..................................................................................................... 45

Table 3-4 Audit outcome .......................................................................................................................................... 45


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1 Scope of the Certification Assessment

1.1 Type of Assessment (Mill, Estate and Mill, etc.)

The assessment was conducted to a Lamthap mill and its supply bases owned by Univanich Public Company Limited which is located at

258 Aoluk – Laemsak Rd., Aoluk, Krabi 81110 – Thailand, using Thai National Interpretation (TH-NI) on Indicators and Guidance ver. June

7, 2011.

1.2 Location of Mill and Estates

Name of Mill and Estate

Location

GPS (UTM)

Point I Point II Point III Point IV

E N E N E N E N

Lamthap Mill 142 M.1 Tumbon Thungsaithong,

Lamthap District, Krabi 81112 536986 883653 535389 885281 535508 884449 535676 883069

Lamthap

Estate

Lamthap Est ; 142 M.1 Tumbon

Thungsaithong, Lamthap District, Krabi 536986 883653 535389 885281 535508 884449 535676 883069

Khlongtom Div: M.5 Tumbon

Khlongtom Nua, Khlongtom District,

Krabi

524601 883913 524073 885306 522785 883649 523108 883252

Cha uat Div : 173/2 M.6 Tumbon Tha

Pracha, Cha aut District,

Nakhonsrithammarat

603868 884672 605928 884178 607875 885345 606573 885873

See Error! Reference source not found. – 1-2 below.


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Figure 1-1 Overall location of mill and estate of Univanich including TOPI mill and its supply bases

Chean Vanich estate

TOPI estate

Siam Palm estate

Nanua Div

Wanee Div

Lamthap estate


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Figure 1-2 Block Map of Lamthap Estate


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1.3 Description of Mill and Its Supply Bases (Fruit Sources)

1.3.1 Description of Mill

Lamthap mill and its supply bases are subsidiary of Univanich. There were also 2 mills (TOPI mill and Siam

mill) and other estates under the ownership of Univanich. Each mill and its supply bases will be reported

separately. Table below is the description of TOPI mill based on actual production in year 2011.

Name of Mill Annual Output (ton)

1

Annual output from own estate (ton)

2 Mill Capacity

(ton/hour) CPO PKO CPO PKO

Lamthap mill 47,920 15,334 522 74 45

Remark: 1 To produce this amount of CPO and PK, the mill received FFB from both their own estates and

independent small growers.

2 Amount of CPO and PKO were calculated from FFB supplied by their own estates only (Lamthap

estaet)

1.3.2 Description of Supply Bases (Fruit Sources)

Fresh Fruit Bunch (FFB) for Lamthap mill is supplied by Lamthap estate which both is owned by Univanich.

Independent growers are also supplying FFB but not included within this certification. Currently, there was

no contract to bind the listed independent growers (see Table 1-1 List of independent grower

Number of independent grower

Location Total Area (ha)

305 Krabi Province 14,524

27 Nakorn Srithammarat Province 1,264

Total area owned by independent grower 15,788

Table 1-) and Univanich. Those independent growers have the right to supply their FFB to any mill depend

on the gate price of each mill. In calendar year 2011, each estate owned by Univanich with distinguish

planted areas could supply FFB to Lamthap mill as shown in Table 1-1 List of independent grower


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Table 1-.

Table 1-1 List of independent grower






Table 1-2 Description of supply base (fruit sources)

Remark: Above data were based on actual production in year of 2011

Name of Estate Area (ha) FFB Production

(ton/year) Total Planted

Lamthap estate

Lamthap Estate 145.3 86.3 2155

Khlongtom Division 161.7 143.5 742

Cha uat Divison 295.8 35.3 134

Total 602.8 265.1 3,031


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1.3.3 Time-bound Plan

The company will use the experience obtained in the main assessment to ensure that independent

grower listed in Table 1-1 will conform to the RSPO principle and criteria for scheme on smallholder in the

next 3 years. Progress of time-bound certification will be verified and reported in subsequent surveillance

visits.

1.4 Date of Planting and Cycle

1.4.1 Year of planting for estate supplied FFB to Lamthap mill during 1989 - present

Year 1989 1991 1999 2001 2003 2005 2007 2008 Total

Planted area in Lamthap estate (ha)

88.3 55.2 16.6 23.5 6.8 38 16.3 20.4 265.1

1.4.2 Five year replanting program for each estate from 2013 to 2017

There is no replanting program for Lamthap estate as age of palm is not ready for replanting.

1.5 Other Certifications Held (ISO, etc.)

Certification Name Certification

Num. Date of

Certification Valid until

ISO 9001:2008 certified by Bureau Veritas Certification for estates under the scope of oil palm seed production, tissue culture and nurseries

TH 002257 November 3

rd,

2004

November 2nd

,

2013

1.6 Organizational Information/Contact Person

Organizational Information

Principle Contact Person Dr. Palat Tittinutchanon

Position Plantations Director

Business Address 258 Aoluk-Laemsak Road, Aoluk, Krabi 81110 Thailand.

Group Name (If applicable) -

Office Telephone number +66 75-634-634

Mobile Telephone Number +66 81 968-5965

Fax +66 75-681-124

E-mail address [email protected]

Web site www.univanich.com


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1.7 Tonnages to be Certified

Tonnages to be Certified

Name of Mill Lamthap Mill

Location 142 M.1 Tumbon Thungsaithong, Lamthap District, Krabi 81112

CPO Production (ton) 522 ton

PKO Production (ton) 74 ton

2 Assessment Process

2.1 Assessment Methodology (Program, Site Visits)

2.1.1 General Overview

The assessment was carried out by referring to TÜV NORD Indonesia Certification Procedure, PRSPO-

TNI-01 Rev. 0, dated 01.06.2008. This procedure described the assessment processes, which consist of

several stages, such as contract review and offer preparation, audit preparation, certification audit,

certificate issuance, and surveillance audit. Audit preparation included off site review of client document’s

such as RSPO manual, procedures, and working instructions. The certification consisted of two audit

stages. First stage audit (pre-audit) was conducted back in April 6-7, 2012. During the first stage audit, on

site review of RSPO related documents and records were done for both mill (Siam mill) and estates (Chean

Vanich estate and Siam estate), while the rest of mill and estates will be visited in stage II. Based on

findings and recommendation from the first stage audit, auditor team asked client to prepare correction and

its evidences, and upon confirmation of correction made the auditor issued notification for certification audit

to RSPO Executive Board to be published at RSPO website. The certification assessment of Univanich’s

mill and its three (3) out of four (4) estates, which are Chean Vanich estate, Lamthap estate and TOPI

estate, was carried out from October 8-12, 2012. The assessment comprised four phases:

A desk audit (document check) of Univanich mill and 4 estates with the help of a customized RSPO

audit checklist according to RSPO manual, procedures and palm oil mill and estate working

instructions;

Review results of consultation with stakeholders prior to certification assessment. The detailed

method is given in 2.5 below

Background investigations (published disputes if any, public comments on preliminary

announcement, laws and regulations concerns related to land, environmental and social aspects),

map of land right and prohibited areas from relevant governments, and followed by interviews with


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RSPO management, employees and other stakeholders (associated people, NGOs, land

regulators, social watchers, labour union).

Verification of proposed corrective actions on December 6th, 2012 continued by review of the

assessment report by internal veto persons (directors of PT. TÜV NORD Indonesia)

The summary public report of certification assessment includes Corrective Action Requests, Corrective

Action Taken Plan, Verification of Corrective Action Taken, and Progress on implementation of Corrective

Action which will be checked during the Surveillance Audit Assessment Agenda

Table 2-1 Audit Schedule

Date Location P&C Main Activities

Day. 1

8.10.2012

Chean Vanich estate (team)

Opening meeting.

Introduction by team leader.

Introduction of team members and assessment agenda.

Presentation by Group Manager (Estate and Mill).

1.1, 1.2 Request of info and respons

2.1, 2.2, 2.3, 3 Regulation compliance, land-use right, customary right, actual and budgeted production

4.1 – 4.8 SOP, Soil Control, Errosion Control,Water Mgt, IPM, Chemical Mgt

5.1-5.6 EIA, HCV, Burning Issues, Waste Mgt., Agrochem

Day. 2

9.10.2012

TOPI estate (Team 1)


2.1, 2.2, 2.3, 3 Regulation compliance, land-use right, customary right, actual and budgeted production


5.1-5.6 EIA, HCV, Burning Issues, Waste Mgt., Agrochem.

6.1-6.11 SIA, Communication, Complaint, Customary,

Wages,Trade Union, Anti Child Labour/ Discrimination/Sexual Harrasment, Payment to Outgrower, CSR

Day. 2

9.10.2012

Public Consultation at TOPI mill and estate (Team)

1.1, 1.2 , Request of info and respons

2.1, 2.2, 2.3 Regulation compliance, land-use right, customary right, actual



Day. 2

9.10.2012

TOPI Mill

(Team 2)

3, 3 Actual and budgeted production


5.1-5.6 EIA, Waste and Pollution Management, Energy Management


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6.1 – 6.11 SIA, Communication, Complaint,


Day. 3

10.10.2012

Lamthap Estate &

Lamthap mill (Team)


2.1, 2.2, 2.3, 3

Regulation compliance, land-use right, customary right, actual and budgeted production

Actual and budgeted production


5.1-5.6 EIA, HCV, Burning Issues, Waste Mgt., Agro chemical.



Day 4

11.10.2012

Siam mill 3, 3

4.1 – 4.8

5.1-5.6

6.1 – 6.11

Actual and budgeted production

SOP, Soil Control, Errosion Control,Water Mgt, IPM, Chemical Mgt

EIA, Waste and Pollution Management, Energy Management

SIA, Communication, Complaint,


Day 5

12.10.2012

Siam Mill Office

Siam Mill Office

All

All

Audit reporting

Closing Meeting

Chaired by the assessment team leader.

Presentation of findings by the assessment team.

Questions and answers.

Final summary by team leader.

2.2 Date of Next Surveillance Visit

The surveillance audit will be scheduled on 2013. Surveillance audit is conducted once a year for a 5-

year period of validity certificate.

2.3 Lead Assessor/Assessment Team

2.3.1 Lead Assessor: Chaiyaporn Seekao

Qualification Compliance

Educational Background

A minimum of post high school (post secondary school) training in, and either agriculture/ forestry, environmental science or

May, 2010-present, Ph.D candidate (Environmental Management) full scholarship at The International Postgraduate Programs in Environmental Management (Hazardous Waste Management), Chulalongkorn University, THAILAND

April, 2006, hold Master of Science (Sustainable Land Use and Natural Resource Management) degree from Kasetsart University, THAILAND.

April, 2002, hold Bachelor of Science (Fisheries) degree from Kasetsart

Yes (Y)


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social science; University, THAILAND

Working Experience

At least 5 years experience in area of work relevant with the audit (e.g., oil palm management; agriculture, ecology; social science);

Environmental/ ecological , safety and health assessment

October 2009 to present: work at TÜV NORD (Thailand) Ltd. and has responsible for several standards such as ISO9001:2008, GMP, HACCP,FAMI-QS, GLOBALG.A.P and RSPO

Year 2008-2009: worked at Team Consulting Engineering and Management Co., Ltd., consultancy company, and had responsible for Conduct the Environmental Impact Assessment (EIA) study which includes HCV, biodiversity social and health impact assessment for many mega-projects which were engaged by recognized companies from both domestically and internationally, The area of my expertise of EIA’s study emphasizes on fishery and agriculture topics, Conduct the public hearing/consultations for obtaining the comments and any feedback from all stakeholders, Give the client with capable consultation and environmental mitigation plan, to minimize the environmental, social and health impacts to nearby communities, Service the client with integrated consultancy based on environmental management, Audit and monitor at project sites during the construction and commissioning period, to ensure that all construction and commission process/activities meet with EIA mitigation measures. The achievement on EIA report are as following for example:

Environmental Impact Assessment of Chana Power Plant Phase 2 Project engaged by the Electricity Generating Authority of Thailand

Environmental Impact Assessment of Chana Power Plant Phase 1 Project engaged by the Electricity Generating Authority of Thailand

IEIA/ISIA of Xepian Diversion Project engaged by Glow Energy Public Company Limited (project in Lao PDR)

EIA of 100 MW Coal Fired Power Plant, Cambodia engaged by the Cambodian Energy Company Limited

Nuclear Power Plant (Pre-Project Activities Study) engaged by the Electricity Generating Authority of Thailand

Revision of EIA for Samet Tai Power Plant Project engaged by the Siam Energy Company Limited

EIA of the Thai oil jetty No.7-8 engaged by the Thai Oil Public Company Limited

EIA of the West Coast Avenue (Thailand Riviera) Project engaged by the Department of Rural Road

EIA for the Four-Lane of Highway No. 12 (Phitsanulok - Lom Sak) Phase 2 Project engaged by the Department of Highway

Environmental Impact Assessment of Sam-Khok (Pathumthani) Power Plant Project engaged by the Ratchaburi Electricity Generating Holding Public Company Limited

EIA of BP2 Coal Mining engaged by the Banpu Publish Company Limited

Year 2006-2008: worked Virbac (Thailand) Co.,Ltd with responsible for Act as GMP and HACCP coordinator (QMR) to coordinate with Department of Fisheries for GMP and HACCP certification, Create new products and improve quality of existing products in particular for shrimp, tilapia and pangasius to meet with customer requirement and regulation concerned, Visit and give the technical support/consultancy to suppliers, customers and fish/shrimp farmers in both domestically and internationally, for example.

Year 2005-2006: worked at Food and Agriculture Organization of the United Nations (FAO) with responsible for Closely coordinate with governmental sector, international organization, national organization, embassy, university and NGOs where has involved in providing tsunami relief to establish the tsunami assistance database, Involve to study and establish the short and long term plans to assist the tsunami victims in Thailand especially recovery their household, occupation and livelihood and Conduct the public hearing/consultations for obtaining the comments and any feedback from all stakeholders.

Year 2002-2005: worked at Department of Fisheries, Ministry of Agriculture and Cooperatives

Y


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RSPO Training:

Trained in practical application of the RSPO criteria, and RSPO Certification System;

RSPO Lead Auditor Course Organized by Stepwise Support Programme during April 12-16, 2010, Johor Bahru, Malaysia

HCV and its application in RSPO Organized by WildAsia during August 28-29, 2012 at Krabi, Thailand

Y

Completed ISO 9001/ 14001/18001 Lead Auditor course and audit experiences.

ISO 9001:2008 Series Auditor/Lead Auditor Training Course (Course No: A17086 Certificated by IRCA) Organized by Robere & Association (Thailand) Ltd. October 26-30, 2009, Bangkok, Thailand

GLOBALG.A.P Train-the-Trainer Workshop for Aquaculture Pangasius, Tilapia (Ver 1.0 Apr 09), Shrimp (Ver 1.0-1 Apr 09) Organized by GLOBALG.A.P during October 12-13, 2009, Kuala Lumpur, Malaysia

GLOBALG.A.P CB in-house trainer training – aquaculture .Organized by GLOBALG.A.P secretariat during February 21-22, 2011, Cologne Germany

GLOBALG.A.P CB option 2 training for group certification-V4 Organized by GLOBALG.A.P secretariat during June 10, 2011, Beijing, China

Y

Experience related to RSPO:

A supervised period of training in practical assessment against the RSPO criteria or similar sustainability standards, with a minimum of 15 days assessment experience at least 3 assessments at different organisations

Having more than 15 days of audit in more than palm oil companies (March 2010 – November 2012)

1. RSPO P&C auditor for pre-audit of Univanich’s mills and estates, Krabi, Thailand that

organized by GIZ during March 15-17, 2010 (3 days)

2. RSPO P&C auditor for Main Audit of PT. PERKEBUNAN NUSANTARA IV

(PERSERO), Medan, Indonesia during October 25-29, 2010 (5 days)

3. RSPO supply chain auditor for main audit of Lam Soon (Thailand) for 2 refinery in Trang

and Samutprakarn, Thailand during March 13-17, 2012 (3 days)

4. RSPO supply chain auditor for stage 1 audit of Energy Absolute, Bangkok, Thailand on

March 29, 2012 (1 day)

5. RSPO P&C auditor for state 1 audit of Univanich’s mills and estate, Krabi, Thailand

during April 6-7, 2012 (2 days)

6. RSPO supply chain auditor for main audit of Lam Soon (Thailand) for 2 refinery in Trang

and Samutprakarn, Thailand during April 30-May 1-6, 2012 (5 days)

7. RSPO supply chain lead auditor for main audit of Energy Absolute, Bangkok, Thailand

during May 14-16, 2012 (3 days)

8. RSPO P&C auditor for Main Audit of United Palm Oil Industry Public Company Limited

(UPOIC), Krabi, Thailand during June 26-29, 2012. (5 days)

9. RSPO supply chain lead auditor for state 1 audit of T S Oil Industry Co.,Ltd, Bangkok,

Thailand on October 22, 2012 (1 day)

10. RSPO supply chain lead auditor for main audit of T S Oil Industry Co.,Ltd, Bangkok,

Thailand during November 9-10, 2012 (2 days)

Audit experience for other similar sustainability standards

1. GLOBALG.A.P lead auditor for Sureerath farm, Thailand during September 11-12, 2010

2. GLOBALG.A.P lead auditor for TSM hatchery, Phang-nga Thailand during December

21-22, 2010

3. GLOBALG.A.P lead auditor for TSM 11 farm, Ranong Thailand during March 3-5, 2011

4. GLOBALG.A.P lead auditor for Charoen Pokphand Foods Public Company Limited,

Songkhla, Thailand during January 30-31, 2012

5. GLOBALG.A.P lead auditor for TSM hatchery, Phang-nga, Thailand during March 10-

11, 2012

6. GLOBALG.A.P lead auditor for Swift Co.,Ltd, Nakornpathom, Thailand on May 8, 2012

7. GLOBALG.A.P lead auditor for Charoen Pokphand Retailing (CPRAM), Bangkok,

Thailand during Ma 9-10, 2012

8. GLOBALG.A.P lead auditor for TSM 11 farm, Ranong Thailand during May 22-23, 2012

9. GLOBALG.A.P lead auditor for Union Frozen Public Company Limited on May 25, 2012

10. GLOBALG.A.P lead auditor for Swift Co.,Ltd, Nakornpathom, Thailand on July 25-28,

2012

Y


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2.3.2 Assessment Team Members

1. Pongrat Khamnungkit

Qualification


Bachelor degree (Public health) major Environmental Health Science and Sanitation from Mahidol University since 1989

Working Experience

Sixteen years of experience in environmental impact assessment especially on sanitation, public health and social-economic study, quality system ISO9000, environment management system ISO14001, auditing, compliance audit, Thai labor standard audit and quality control and assurance of poultry processing plant.

Work for TUV NORD (Thailand) for a decade and had responsible to audit against ISO9001, ISO14001, OHSAS18001, TIS18001 and Thai Labor Standard (TLS) 8001.

Done EIA report more than 30 projects throughout Thailand with emphasize on the field of public health and social impact assessment.

Training background

- ISO/CD 26000 organized by TISI, May 21-22, 2009, Bangkok. - SA8000®:2008 Standard Revision Training Course organized by Social Accountability International (SAI),

March 13, 2009, Bangkok. - Hazard Control/Ergohomic included Psychological Health Hazard & Control by Siam Safety, 5.01.09,

Bangkok. - Risk Assessment training by Siam Safety, 31.10.08, Bangkok. - GMP and HACCP in food processing plant organized by Thai National Food Institute, April 24-28, 2006,

Bangkok. - Training course on “The Thai Labor Standard Auditor TLS 8001:2003” by Department of Labor Welfare

and Protection, September 6-7, 2004, Bangkok. - Training course on “Application to new regulation of food industry” by Thai National Food Institute, August

9, 2004. - Fire Drill and Fire Fighting In-house Training against Thai Labor Law, July 12, 2004. - The Occupational Health and Safety Management System Auditor Conversion Training Course (Course

no.IRCA:A16834), May 15-17, 2004 - Training course on “Food Risk Assessment in Food Industry” by Thai National Food Institute, March 18-

19, 2004. - International training course on “Principles of Pollution Prevention and Cleaner Production” developed by

USEPA, organized by the Environment Engineering Association of Thailand, February 27-28, 2003. - “ISO9000:2000 Transition Auditor Training Course” by Nigel Bauer&Associates under IRCA Ceritified,

November 18-19, 2000, Bangkok. - Training course on “The Environment Systems Auditor ISO 14000” by Quality Assurance Services Pty.

Ltd. (Australia), August 23-27 1999, Pattaya. - Training course on “Integrated Solid Wastes Management”, organized by the Environment Engineering

Association of Thailand, March 25-26 1999, Bangkok. - “Registered Lead Assessor Course ISO 9000” by JP Consultant Limited, UK, May 6-10 1997, Bangkok.

Experience related to RSPO

Having experiences in assessment RSPO to date (December 2012) - RSPO P&C for Main Audit of United Palm Oil Industry Public Company Limited (UPOIC), Krabi,

Thailand during June 26-29, 2012. (5 days)

2. Technical Expert : Associate Professor Dr. Benchamaporn Pimpa

Qualification


Doctor of Philosophy (Food Chemistry and Biochemistry) degree from University Putra Malaysia, Malaysia.

Working Experience

Lecturer in teaching the following subject: Fat and oil processing I, Fat and oil processing II; Quality control.

Member and secretary of the Oil Palm Research Unit of Prince of Songkla University, Suratthani Campus.

Completed research projects related to palm oil as following:

Effect of synthetic antioxidants on the oxidative stability of refined bleached and deodorized palm olein during 2006-2007;

Detection of Salmonella sp. In salted egg by PCR method compared to conventional culture method during 2007-2008;


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The study of crude palm oil content in oil palm fresh fruit bunch and effect of incubation time on quality and quantity of crude palm oil at Suratthani province during 2007-2009;

Production of palm oil for consumption and biodiesel for oil palm farmer during 2009-2011.

Currently studying the research under the project name “The study of ripeness and oil content of oil palm fresh fruit bunch and effect of steaming of oil palm fresh fruit bunch to crude palm oil content”.

As speaker following subject: Production of biodiesel from used vegetable oil, Junior oil palm farmer promotion, Extraction of crude palm oil by using a small scale extraction machine, and Road map to sustainable oil palm production (Speaker).

RSPO REQUIREMENT ASSESSOR QUALIFICATIONS COMPLIANCE

Fluent in main local languages and English.

Chaiyaporn Seekao (CS)

Phomrat Khambungkit (PK)

Benchamaporn Pimpa (BP)

Fluent in Thai language and English Y

Field working experience in the palm oil sector, or a demonstrable equivalent.

BP She is also now member and secretary of the Oil Palm Research Unit of Prince of Songkla University, Suratthani Campus. She has completed research projects related to palm oil as following: Effect of synthetic antioxidants on the oxidative stability of refined bleached and deodorized palm olein during 2006-2007; the study of crude palm oil content in oil palm fresh fruit bunch and effect of incubation time on quality and quantity of crude palm oil at Suratthani province during 2007-2009; and Production of palm oil for consumption and biodiesel for oil palm farmer during 2009-2011. Currently, she is studying the research under the project name “The study of ripeness and oil content of oil palm fresh fruit bunch and effect of steaming of oil palm fresh fruit bunch to crude palm oil content”. She used to be speaker following subject: Production of biodiesel from used vegetable oil, Junior oil palm farmer promotion, Extraction of crude palm oil by using a small scale extraction machine, and Road map to sustainable oil palm production (Speaker)

Y

CS Having experience in RSPO P&C Certification audit as well as RSPO Supply chain audit

Good agricultural practices(GAP), integrated pest management (IPM), pesticide and fertilizer use.

CS Having experience in GLOBAL G.A.P since 2009.

Y

Health and Safety assessment on the farm and in processing facilities. (For example OHSAS 18001 or occupational. Health and safety assurance system).

PK Having experience in audit OHSAS 18001 Y


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Workers welfare issues and social assessment experience. (For example with SA8000 or related social or ethical accountability codes).

PK Having experience for more than 23 years in SA 8000 as well as Thai Labor Standard (TLS) 8001

Y

Environmental and ecological assessmenting. (For example experience with organic agriculture, ISO 14001 or environmental management systems).

PK More than 15 years for preparing the environmental impact assessment and ISO 14001. Preparing ISO 14001 for estates, contractors, power plant, etc.

Y

CS Having experience in lots of Environmental Impact Assessment Project while working in one of environmental consultancy company in 2008

Y

PK Involved in more than 30 projects throughout Thailand in Environmental Impact Assessment emphasized on a public health field as well as Social Impact Assessment.

Y

Economic issues PK Having experience in public health and socio-economic study

Y

2.4 Certification Body

PT. TÜV NORD Indonesia is a subsidiary of the German TÜV NORD Group. Our company is a market

leader in Indonesia for inspection, testing and certification services. Through more than 800 clients, we

offer not just a high added value service but also the trust and confidence embedded in our issued

certificates / reports. We satisfy not only our direct customers but also other stakeholders, like regulators

and interested society including NGOs, through our competent auditors, inspectors and analysts. In this

assessment, PT. TÜV NORD Indonesia was collaborated with TUV NORD Thailand.

Under its HQ in Germany, PT. TUV NORD Indonesia is a member of International Accreditation Forum

(IAF) and accredited by DAR–Germany, and locally accredited by the Indonesian Accreditation Committee

(KAN). Services provided by the Strategic Business Unit Systems Certifications are: Food Safety

Management System ISO 22000, GMP, HACCP, Information Security Management System ISO 27001,

Social Accountability SA 8000, Medical Device Directive MDD ISO 13485, Occupational Health and Safety

OHSAS 18001, Product Certification: GS-Marking, CE-Marking, SNI Marking, Inspection for ISPS Code,

Clean Development Mechanism (CDM) Validation & Verification, British Retail Consortium, BRC Issue 5.

2.5 Outline of How Stakeholder Consultation Was Managed

2.5.1 Summary

Stakeholder consultation began with notification of the upcoming assessment during October 8-12, 2012 by

posting in the RSPO’s website. Telephone call, contact numbers, facsimiles or postal address were made


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available in the RSPO’s website so that stakeholder can be aware before initiating the assessment.

However, Siam mill and its two (2) estates which are corporate mill and estates of Univanich have held

regular meeting with stakeholders voluntarily without being bound by RSPO requirement. Before executing

the assessment, the audit team read though the complete proceeding of all meetings to update and catch

up the current situation and issues raised by the stakeholders. The stakeholders including local community

leaders and representative of governmental agencies concerned were then invited to discuss critical issues

in community development, to make any comments on several issues related to them with and without

consideration of RSPO requirements as well as brainstorming for community development together. Some

of the items agenda for the public consultation meeting were as follows:

Information about RSPO to the public and stakeholders

Univanich’s policy and implementation on environmental protection and biodiversity conservation

The impact of both mill and estate on the Environment and Conservation as well as its mitigation

plans

The impact of both mill and estate on social and community development.

How to promote sustainable palm oil

Determine issues of community that will be affected either by direct or indirect from the mill and

estates, as well as determine how to improve the solutions.

Agenda above was covered on how to maintain infrastructure of roads in-out estates as dust from FFB

transportation is the most concerned by the local communities, mechanism to give the complaint and

grievances, maintain environmental conditions, corporate social responsibility including how to provide

financial support, scholarships, welfare, sanitation and improve the quality of life of stakeholders who live

around the estates. From the latest public consultation meeting done at Lamthap mill on March 20th, 2012,

there were 8 community leaders surrounding the mill and estate attended this public consultation meeting.

The discussion with stakeholders done by Univanich was well organized and given the free for

stakeholders to reveal their perspective either negative or positive to the estates and mill. Results of this

public consultation meeting showed that there were no any concerns which associated with the presence

activity of mill and estate raised by the stakeholders.

2.5.2 List of Contacted Stakeholders

The details of local stakeholder list showed that there are no indigenous peoples, worker organization, local

NGO and national NGO in the vicinity of the mill and estates. The in-availability of either indigenous

peoples, worker organization, local NGO and national NGO have been confirmed again during the public


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consultation meeting which was held at Lamthap mill office on March 20th, 2012. Lists of participant are as

showed in Table 2-2

Table 2-2 List of Stakeholder around Lamthap mill and its supply bases

No. Statutory Bodies / local communities Contact Person

1 M.8 Village Chief, Thungsaithong, Lamthap Mr. Theerapong Noochaikaew

2 Smallholder, Thungsalthong Mr. Suthep Maneemai

3 M.1 Village Chief, Ban Sai Nai, ThungsaiThong, Lamthap Mr. Suphit Panchoo

4 SAO Member, Thungsai Thong, lamthap Mr. Kerm Khongsiri

5 Mill’s Contractor Mr. Wirat Long Hon

6 Villager Mr. Nukul Srichoo

7 Villager Mr. Thanit Rodyoo

8 Villager Miss Pennapha Nakkri

9 Smallholder Mrs. Salee Tawisuwan

10 Smallholder Mr. Prathop Chumpol

11 Villager Mr. Pratheep Kaoluan

12 Villager Mr. Daecho Pechruenthong

13 Employee Mr. Kittisak Saisara

14 Employee Mr. Nid Boonnakkaew

15 Employee Mr. Saroj Pueksawas

16 Employee Mr. Samart Sriroj

17 Villager Mr. Wimonthorn Kaoluan

18 Villager Mr. Sakchai Srichai

19 Smallholder Mr. Wichain Kaewjuer

20 Smallholder Mr. Saibop Panchoo


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3 Assessment Findings

3.1 Summary of the Findings by Criteria

Objective evidences were obtained separately for each of RSPO indicators for mills and estates in the

certification assessment. The information was comprehensively asked from Lamthap mill and Lamthap

estate which is their supply base. The results for each indicator from the different operational areas were

aggregated to assess the overall conformances of the company’s operations to each criterion. The

summary of the assessment can be seen in Error! Not a valid bookmark self-reference., where

“Findings/Comments” column reflects the findings in accordance with each criteria and indicator or

evidences that were found (the full and complete checklist contains some confidential information and is an

extensive document used for peer review and by the certification decision panel and certifier), and when

non conformity was found, a summary of the non-conformity will be included. A detailed description of the

Non-Conformities is given in Section 3.2.

Nonconformities for Siam mill and its supply base were raised for one (1) Major and two (2) Minor

Indicators, with some opportunities for improvement. Where a nonconformity/observation is assigned,

reference is made at the end of the text of the indicator to which it refers.

Lamthap mill and Lamthap estate of Univanich have prepared a Corrective Action Plan which date for

implementation has been accepted by PT. TUV NORD Indonesia and TUV NORD (Thailand). The

effectiveness of the corrective action for minor conformities will be checked on the next surveillance but the

major finding have to be closed within 60 days.

The following is a summary of the findings for compliance with the RSPO Principles & Criteria for Thailand

(TH-NI).

Table 3-1 Summary of Findings by Criteria

FINDINGS/COMMENTS COMPLIANCE

Criterion 1.1 (C.1.1)

Provide adequate information to other stakeholders on environmental social and legal issues relevant with RSPO Criteria, in appropriate languages and forms to allow for effective participation in decision-making

Transparency procedure P-AM-01 revision 0 dated 1.10.2011 which contains information on environmental social and legal issues have been established by the central office of Univanich. Lamthap mill was announced transparency procedure to the stakeholders during the public

Yes


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consultation meeting done on March 20th

, 2012 before the date of certification assessment in order to inform the right of stakeholders to ask the relevant information showing the transparency of company’s operations. Siam mill and estate maintain a system of request for information and responses. Not only stakeholder but also workers at mill and estates have the right to request any recorded information.

Result of review of correspondence found that currently there are no any requests for information from the stakeholders (1.1.1) proposed to Lamthap mill and Lamthap estate. In case that stakeholder requested the information, at least lists of information; summary of land title or land-use rights, health and safety plan, social and environmental impact assessment report, pollution prevention plan, details about complaints and grievances, procedures and process of negotiation, test report on water supply analysis to ensure that they are met with the national standard are available to response that request promptly. The record of request/response is designated to be kept for 5 years.


Management documents are publicly available, except where these are prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes

The records held at Lamthap mill and Lamthap estate showed that copies of the management documents such as summary of land title or land-use rights, health and safety plan, social and environmental impact assessment report, pollution prevention plan, details about complaints and grievances, procedures and process of negotiation and test report on water supply analysis required by RSPO were available and ready for transparency purpose on request at each location visited (1.2.1). Details of document are listed below.

Each location visited held a copy of the land deed.

The mill and estates have a health and safety plan that consists of policy signed by top management, annual training plan, quarterly meeting to identify and address health and safety issues.

The mill and estate have prepared the environmental impact assessment report which identified significant impact using ISO14001 approach. Mitigation plans to reduce the significant impact are also addressed. Social impact assessment done by consultation with stakeholders and action plans are prepared and addressed issues raised by stakeholders.

Pollution prevention plans have been developed by using report of environmental monitoring done by Environment Research and Technology Co.,Ltd as the baseline information.

The mill and estate maintain a system of receiving complaints. Records of written complaints and issues raised by stakeholders will also be maintained even though there are no complaints given by stakeholders.

Procedure and processes of negotiation associated with land acquisition were available. The final process of negotiation associated with land acquisition will be judged at the court as final solution.

Central office of Univanich has prepared a consolidated improvement plan for the mill and estates.

Yes


There is compliance with all applicable local, national and ratified international laws and regulations

Lamthap mill and Lamthap estate maintain a copy of all licenses on file. List of relevant laws and regulations that need to be realized by mills and estates was developed by central office at Siam mill on April 1

st, 2012 in order to ensure that all operations are in compliance with laws and regulations.

Sample of documents and records of Lamthap mills and Lamthap estate were examined for assessment of legal compliance. Inspection of a sample licenses showed that all licenses were current at the time of the assessment as for instance below (2.1.1).

Univanich holds land deeds and contracts for all land used for oil palm cultivation. Land

Yes


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deeds and contract were done according to the Land Development Act B.E. 2551 (2008), Land Renting for Agriculture Act B.E. 2524 (1981), Agricultural Land Reform Act (No. 2) B.E. 2532 (1989) and Ministry of Environmental and Natural Resources.

Estates used only chemicals that have been assessed and registered with Department of Agriculture. For instance, paraquat with registration number of 694/2547 (2004) and gloyphosate with registration number of 1528/2550 (2007) have been reviewed during the assessment.

Waste disposal done by authorized company namely Mahachai Aeksirioil who hold the license number 3-106-5/46 issued by Department of Industry Work

Boiler inspector license issued by Department of Industry Work was inspected.

Not only boiler inspector but also engineers and electricians have the necessary qualification approved by Department of Industry Work

License obtained from Department of Industry Work allowing Lamthap mill can use boiler machine for their purpose. Certificate of operation for such boiler inspected by approved engineer and approved by Department of Industry Work is also available.

Results of emission monitoring on September 2012 at Siam Mill that done by Environmental Research and Technology Co.,Ltd, who holds the license number Wor.-099 for environmental monitoring and analysis, revealed that neither Total Suspended Particulate (TSP), sulfur dioxide, nitrogen dioxide nor carbon monoxide level was exceeded than the notification of the Ministry of Industry B.E. 2549 (1996) setting for emission released from the factory. This report was also submitted to Krabi Provincial Industry Office for consideration as required by Act no. 30 of an Industry laws B.E. 2535 (1992).

Lamthap mill treats effluent in anaerobic ponds and applies of the treated effluent for oil palm cultivation. The treated effluent is tested monthly at an independent laboratory.

Inspection of payment records at Lamthap mill and Lamthap estate since January-September 2012 found that workers were paid in accordance with the notification of Ministry of Labour indicated the minimum wage for Krabi province at 257Baht/day on November 2

nd,

2011. The records of payment for sub-contracted worker were also reviewed and found that sub-contracted workers were paid in accordance with the respective award rates.

Central office at Univanich has established procedure for the provision of the laws and regulations revision 00 dated 1.4.2012 and work instruction SD/SMR-006 dated 17.02.2012 for reviewing any updates related to laws and regulations in every 3 months. HR manager at central office of Siam mill will be responsible for the update on laws and regulations (2.1.2). To obtain the relevant update laws and regulations, HR manager will coordinate with provincial governmental officer from relevant agencies. Then, the evaluation to demonstrate which law and regulation are related to the mill and estate operation will be done by HR manager at the central office of Univanich and will be approved by Dr. Palat Tittinutchanon, the plantations director. The evaluation of relevant laws and regulations is done in accordance with the mechanism established by Univanich on 1.4.2012. If there are any updates on laws and regulations related to the mill and estate based on the result of evaluation, its update of the laws and regulations will be sent to each mill and estate and they will be communicated again during the estate manager meeting at central office of Siam mill (2.1.3 and 2.1.4). Current list of laws and regulations against with the compliance reviewed since the beginning of year 2012 is available. The latest laws released since year 2012 and related to the facility was covered 2 topics as following:

Announcement letter on labour and safety which released on 2 May 2012

Announcement letter on environmental laws (only amendment not the huge change) released on 2 May 2012


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


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All areas of Lamthap mill and Lamthap estates are have been bound with the various licenses (i.e. Nor Sor 3, Nor Sor 2, Nor Sor 4, Nor Sor 3 Kor and Nor Sor 4 Jor which issued by Land Department and Agricultural Land Reform Office of Ministry of Agriculture and Cooperatives) (2.2.1). Land right of Lamthap mill and Lamthap estate have not bound with permit issued by Department of Royal Forestry and Cooperative Promotion Department like Chean Vanich estate and TOPI estate.

For the boundaries of estate were inspected at several places and at every instance found to be demarcated by pillars. Even though all areas of Lamthap estate where supplies FFB to Lamthap mill are on land licenses, Lamthap mill and Lamthap estate have established the mechanism on how to resolve the disputes/conflicts (if any) which is already presented during the public consultation meeting. Any disputes over the land rights will be judged by court for final resolution if proven evidence could not be accepted by parties concerned (2.2.2)

Based on the results obtained from the public consultation meeting organized on March 20th

, 2012 at Lamthap mill, it revealed that there are no any disputes or conflict over the land rights so far. All stakeholders especially community leader and officers from local government agencies were confirmed that the Univanich has the rights over the land and there were no occurrence of any land conflicts since Univanich started the business of palm oil in these area almost half a decade. Therefore, there is no necessary to map the boundary of disputed area in a participatory way (2.2.3).

Yes


Use of land for oil palm does not diminish the legal rights or customary rights of other users, without their free, prior and informed consent.

Ascertainment of the land rights of other users was done through inspection of the minutes of the public consultation meeting. It was confirmed that there is no customer rights of other users because all square meters of land of Lamthap mill and Lamthap estate, the supply base, are bound with the land licenses from relevant governmental concern such as Land Department, Agricultural Land Reform Office of Ministry of Agriculture and Cooperatives (2.3.1 and 2.3.2).

Yes


There is an implemented management plan that aims to achieve long term economic and financial viability

The Siam Mill based Central office of Univanich will be responsible for making a decision and approval of annual budget for 2011-2014. The annual budget plan for Lamthap mill includes production forecast of amount of CPO based on amount of FFB from different sources, OER trends operation costs i.e. use of electricity from both purchasing from EGAT and their owned biogas as well as amount of budget for purchase of FFB from independent small growers, and production cost. Lamthap mill operation performance according to the plan is monitored monthly and reported to the top management for further consideration on yearly basis. For the annual plan of estate includes forecast of FFB production per ha, budget for harvesting and collection of FFB, budget for transportation of FFB from estate to mill, budget for plantation maintenance (i.e. fertilizer application, weeding, pest and disease control, EFB application, and POME application), and expected volume of amount of rainfall, the estate performance to produce FFB/ha according to the plan is also evaluated monthly and yearly basis (3.1.1).

Long term plan program is subject to annual review basis by Dr Palat Tittinutchanon at the end of every year. Replanting program for Lamthap estate is however not be able to establish as age of palm is still immature. Replanting program; for example at Chean Vanich estate, was last reviewed in September 2011 (3.1.2). There are 2 methods of replanting program. The first method is clean clear planting as showed in Figure 2. Another method is the planting under the mutual tree at the

areas that mutual palm oil trees were cleared. Because of there is not necessary to chip and shred

Yes


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mutual palm trees from the whole area. Only specific row of mutual palm oil tree will be chipped and shredded. 2 methods of replanting program will be certainly applied for Lamthap estate.

Figure 2 Replanting implementation

Source: Siam Palm estates, 2009


Operating Procedures are appropriately documented and consistently implemented and monitored

Central office at Siam mill have established relevant procedures and work instructions for Lamthap mill and Lamthap estate based on document hierarchy structure for documents in compliance with ISO 9001 and include all tasks from replanting through to upkeep and harvesting. Here below are some procedures and work instructions used in the mill and estates (4.1.1 and 4.1.2).

Agrochemical storage operation “Document no. 4.9”

Maintenance of engines and vehicles for agriculture “Document no. 4.7”

Fertilizer application and soil improvement “Document no. 4.3”

Harvesting and transporting of FFB from estate to mill “Document no. 4.1”

Integrated Pest Management program “Document no. 4.6”

Irrigation in the plantation “Document no. 4.11”

Palm oil nersery management “Document no. 4.2”

Pruning technique and implementation “Document no. 4.4”

Replanting program and methods “Document no. 4.12”

Road maintenance “Document no. 4.8”

Training “Document no. 4.10”

Weed protection and elimination “Document 4.5”

Safe working practices for both Lamthap mill and estates

Application of pesticide. For riparian zone management is also addressed in this procedure with explanation that buffer zone of at least 15 meters on both sides of the canals in the estates has been delineated to ensure that they are free of agrochemical usage

In the assessment, not only the inspection of availability of procedures and work instructions but also verification of the implementation according to their documented procedures and work instruction was done. Based on the results of verification on the records, it was found that the implementations were done in compliance with the documented procedures and work instructions. For example, the mill operators recorded operating parameters hourly of boiler onto shift log sheets which are then reviewed by the supervisor. Another example of mill operation is related to training of mill operators. Training subjects to be given for all mill operators in year 2012 such as health and safety training,

Yes


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use of PPE, for example were done in according to the training plan for year 2012. Records of operation activities based on the relevant procedures and work instructions are kept properly and could be traceable back for 2 years (4.1.3). A monthly report is produced by each estate for management meeting that will be held at Siam mill as the central office to review the monthly implementation and any changes that may affect to the implementation of each estate and also documented procedures and work instructions.


Practices to maintain soil fertility at, or where possible improve soil fertility to, a level that ensures optimal and sustained yield

Regarding to the records of fertilizer application, all estates applies different fertilizers depend on the purpose of the use and expected benefits. There were 3 formulas compose of 0-0-27, 0-46-0 and 16-16-8 that found during the site visit and recorded in the fertilizer application log sheet. The estate recorded fertilizer application for each block and report the progress on implementation of the fertilizer application to the central office at Siam mill for review. Fertilizer application is done daily but cover 2 times a year/block. The implementation of fertilizer application could be divided into 2 methods; spraying by worker directly and use the fertilizer spraying machine which is shown in Figure 3. A record of fertilizer stock movement is also maintained and can be cross checked with

amount of fertilizer used in each block (4.2.1).

Figure 3 Fertilizer application by using spraying machine in the estate

The estates have monitored changes in nutrient status starting from the tenth year after planting and five-seven yearly intervals from blocks. Foliar samples of each estate were taken and analyzed by Applied Agricultural Research SDN. BHD at Malaysia. Latest foliar analysis for Lamthap estate was done on 13 April 2012 for 9 blocks. The results of latest foliar analysis done for Lamthap estate for block 162 (block 1) were composed of ash = 7.43, N = 2.6, P = 0.167, K = 1.2, Mg = 0.23 and B (ppm) = 11.8. The results for other 8 blocks were not significantly different with block 1 (4.2.2). The results of foliar analysis of each estate are monitored by Plantations Director, Dr. Palat Tittinutchanon, again. He will make a recommendation for fertilizer application on the basis of foliar samples analysis.

The estates have EFB and POME application program in place as described in the Fertilizer application and soil improvement “Document no. 4.3”. Not only EFB and POME which indicated as the program for soil improvement but also decanter cake can also be used. The implementation of EFB, POME and decanter cake could not only improve soil fertility but also reduce wastes from the mill. Cover the ground by putting the dried leaf for in-matured palm oil tree is also the one method to

Yes


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improve soil nutrient content and prevent the erosion as showed in Figure 4. Estates have

established the program for application of bio-compost by producing from EFB and mill effluent (POME). Approximately 60 ton/ha of EFB is applied on fields where are having poor fertilities such as sandy soil, lateritic soil with lowing FFB yield as well as in order to replace costly potassium fertilizers purpose. Palm oil mill effluent (POME) produced by Lamthap Mill and remains from using in biogas digester and treatment will be applied to irrigate the palm oil trees at Lamthap estate. Approximately 40-50% of treated POME is applied in furrows connecting between last wastewater treatment pond and the palm oil estate (Figure 5). However, there were no any leakages of POME into water bodies

from the wastewater treatment pond of the mill or from the fields of Krabinoi estate where POME was applied. The record of POME generated by TOPI mill during January – September 2012 was approximately 143,173 cubic meters. Approximately 141,357 cubic meters of treated POME from total amount of POME generated by Lamthap mill were applied into nursery and palm oil cultivation area of Lamthap estate. Monitoring BOD level from the last wastewater treatment pond before pumping for irrigation is done monthly at each mill. Latest BDO level monitoring result after treatment done on 15 September 2012 was 100 mg/L. However, there is no matter on BOD levels from POME applied in the estate. if POME is reused in oil palm cultivation, it is not required by Thailand government. Even though the BOD tested on 15 September 2012 was quite high when comparing to other estates, the Lamthap estate has set the plan to de-sludge in the treatment ponds by 2013 in order to decrease the number of BOD analysis after treatment (4.2.3).

(a)

(b)

Figure 4 Practices to maintain and restore soil fertility by application of EFB (a) and U-stacking of

pruned fronds in the palm inter-rows (b)


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(a) (b)

Figure 5 The reused of POME in the estate though furrows (a) and pumping station (b)


Practices to minimize and control erosion and degradation of soils

Soil conservation practices to minimize and control erosion are described in procedure no. P-SI01/2000. Estates have committed to control and minimize soil degradation by using topography map with contour lines from Royal Thai Survey Department to delineate sensitive areas of erosion. Inspection at the Lamthap estate found that there was no areas with slopes of 10-15% that need to be considered as fragile soil area like Chean Vanich estate. However, conservation soil practices were implemented. For example, pruned palm fronds are stacked as U-shape around of planted areas to prevent the erosion and degradation of soils. Legume cover crops (LCC) were also planted in replanting areas at Lamthap estate in order to establish groundcover, prevent soil erosion, increase soil fertility and control of other weeds (4.3.1 and 4.3.2).

The estates have an annual budget and annual plan for road maintenance. Locations of road where maintenance is needed to be carried out of Lamthap estate were defined well in road maintenance program. Rainy season is the main factor of interrupt reason which is used to consider for developing the annual plan of road maintenance program. Based on this consideration, road maintenance will emphasize to implement during the summer and winter season. There are many activities under road maintenance program to ensure that it can be prevented the erosion and soil degradation such as grading, compacting and cambering. Not only road maintenance but also for drainage pipe maintenance is included in this program. The implementation of either road or drainage pipe is carried out by the workers of the estates as rollers and excavators are available on site. From inspection at Lamthap estate found that road maintenance program for year 2012 that needed to be maintenance is set out approximately 20% from total length of roads in the estate. Only 15% from 20% was completed for road maintenance. Field inspection at Lamthap estate found that roads in a good state of repair and all areas were accessible. The main practice of road maintenance is that using rouge which compress soil surface by using road roller vehicle until it is smooth and strengthen (4.3.3).

Moreover, there are no peat soils at any estates of Univanich (4.3.4)

Yes


Practices to maintain the quality and availability of surface and ground water

Estates have a policy which states that natural surface water will not be used for irrigation of palm oil cultivation purpose. Groundwater is however allowed to use for worker who lives in the estate for

Yes


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consumption purpose only. Surface water management plan is described in the procedure P-PT-13 Revision 00 dated November 5

th, 2012. The water management plan includes constructing the

reservoir to store the rainwater for irrigation in the estate, avoiding contamination of surface from chemicals and POME, reusing POME in the estate and supporting the zero discharge of any effluents from either mill or estate into the environment. Field inspection of water management implementation according to the plan described in the procedure P-PT-13 was done to ensure that all plans were implemented. Results of inspection found that estates constructed the huge reservoir to store rainwater (Figure 6). Water stored in reservoir will be used for estate and nursery area.

Allocation the buffer zone at least 15 meters on both sides of very small canal in the estate and also reservoir with free of agrochemical use is also implemented well. Restricted use of chemical signs at buffer zone areas are installed to educate and make an awareness of sprayers. POME from the last wastewater treatment pond will be applied in Lamthap estate through furrows. Periodically inspection of any discharge and leakage of POME applied in the estates have been done to support the zero discharge policy. For the water consumption at mill, water from the river is pumped for processing. However, there are no regulations for controlling the use of water from either water bodies in Thailand. Record of public participation meeting at Lamthap mill on March 20

th, 2012 showed that

there were no any conflict from the water use between mill and villagers (4.4.1 and 4.4.3).

Figure 6 Weir construction to store rainwater at Lamthap estate

Lamthap mill have monitored the effluent water quality that discharged from the mill at the inflow (before treatment) and outflow (after treatment at wastewater treatment ponds) monthly. Not only BOD but also COD, pH, suspended solid, oil and grease (O&G) are planned to analyze from effluent monthly. The analysis of effluent is done by Saint Environment Co.,Ltd, external laboratory who holds license no. Wor-052. Latest result of effluent analysis on 15 September 2012 could be divided into 2 parts according to inflow and outflow. To monitor the effluent water quality at inflow, effluent was sampled from fat pit. Result of effluent analysis at inflow was 19,613 mg/L. While result of effluent at outflow sampled at last wastewater treatment pond (pond no. 9) before irrigating in the estate was 100 mg/L. To support the zero discharge policy, effluent will be reused in biogas and irrigated in the estate. Inspection of the effluent treatment ponds of Lamthap mill found that the pond embankments were well maintained and there were adequate freeboard to prevent overflow (4.4.2).

Lamthap mill measures water usage for processing per ton of FFB monthly. Latest water usage in September 2012 showed that water usage for processing per ton of FFB was 1.4 cubic meter/ton of FFB (4.4.4).


Pests, diseases, weeds and invasively-introduced species are effectively managed using appropriate


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Integrated Pest Management (IPM) Techniques

Estate has formulated an Integrated Pest Management (IPM program as address in the document procedure no. 4.11 to control major palm pest which is rat. The estates have installed barn owl box so that they can use as nest (Figure 7). Moreover, IPM program includes the establishment of beneficial host plants such as Casia cobanensis and Euhorbia heterphylla along the roadsides and estate. Estates especially Chean Vanich estate is in process of propagation and multiply of Casia cobanensis and Euhorbia heterphylla in nursery so that they will be ready for planting in coming rain season around April and May of 2013. To stop spreading and outbreak of leaf eating caterpillar, the estates cut damaged fronds where are heavily attached by bagworms or caterpillars. Then, estate has destroyed or burned them during initial step. The use of chemical to prevent the outbreak is not recommended because it may affect to beneficial insects (4.5.1).

Lamthap estate has implemented and on-going program to monitor the presence of pests in order to identify pest numbers and possible outbreak. Training has been given to worker on how to monitor leaf-eating pests and rat. If worker found rat in estate, they need to eliminate or catch them immediately. Rat baits are used to facilitate workers for catching them. IPM techniques based on natural control food chain control by encouraging proliferation of snake to eat up rats were noted as the current practice on all estates. Number of barn owl and boxes are monitored monthly. The result of monitoring number of barn owl at Lamthap estate found that number of barn owl has been increasing since releasing only 7 male and female adult barn owls in the last 2 year. To control the weed, legume cover crop is planted in the replanting area. Application of Bacillus thuringiensis (BT) is the one technique that uses to control outbreak of bagworm, Darna fuva, Darna sordid and Darna diducta (4.5.2).

Chemical treatment is carried out based on the estate manager’s recommendation. The monitoring of pesticide usage was done properly. The records of either pesticide or herbicide used were found consistency with the results found in the stock card of pesticide inventory. Main types of pesticide used in the estates were glyphosate and paraquat. The use of either glyphosate or paraquat was done according to the instruction given in the label by the supplier. Glyphosate and paraquat that used in the estate are already registered with the Department of Agriculture. In order to know the toxicity unit, the total active ingredients of glyphosate at 48% and paraquat at 27.6% applied per hectare per year have been calculated. The result of active ingredient toxicity unit (liter a.i. per ha.) was calculated based on the total amount of either glyphosate or paraquat used since January – September 2012. From this equation, it found that paraquat used in Lamthap estate was about 10 liters. Thus, the result of active ingredient toxicity unit (liter a.i. per ha) was only 0.04. Meanwhile, glyphosate used in Lamthap estate was about 700 liters. Therefore, the result of active ingredient toxicity unit (liter a.i. per ha) was 3.89 (4.5.3).

Yes


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Figure 7 Barn owl propagation for biological rat control


Agrochemicals are used in a way that does not endanger health or the environment. There is no prophylactic use of pesticides, except in specific situations identified in national Best Practice guidelines. Where agrochemicals are used that are categorized as World Health Organization Type 1A or 1B, or are listed by the Stockholm or Rotterdam Conventions, growers are actively seeking to identify alternatives, and this is documented.

The selection of chemical for weed control and the treatment is based on the inspection of field conditions before spraying. It is the responsible of estate manager to make a decision whether spraying with chemical is necessary. However, the justification of purchasing all chemical pesticide use in all estates for 2 times a year has been decided by Dr. Palat Tittinutchanon, Plantations Director. The reasons for using paraquat and glyphosate were to reduce man power requirement, to reduce the cost of application, and to control weeds effectively. Inspection at Lamthap estate confirmed that work instruction regarding to the dosage and application methods was given to all sprayer as they could show the record of ratio between chemical and water according to the recommended dosage. All sprayers who have been interview during the assessment could also explain the instruction of use according to the work instruction (4.6.1).

All types of chemical used in the estates were registered under the Hazardous Substances Act B.E. 2535 (and its amendments) of Thailand. For example, the license number of glyphosate and paraquat issued by Department of Agriculture are 1528/2550 and 694/2547, respectively. Inspection of Lamthap chemical store confirmed that there were no any unregistered chemical pesticides that have been used and stored on shelves (4.6.2). Inspection at store also showed that chemical pesticides are met requirement of security, spill containment, well ventilation, and labeling. Running water is provided to workers who have to handle with chemical pesticides. Chemical pesticides are always kept in store which is secured with lock. Key to the store is only held by designated person responsible for chemical inventory and storage. Notices and MSDS of each agrochemical are displayed in front of the shelf where it is placed/stacked in the store. There is procedure established for agrochemical use with a list of approval agrochemical and their dosage which depends on the purpose of use. The agrochemical use procedure described in document no.4.9 was used to train the workers who deal with the agrochemical. MSDS and how to apply chemical properly were the one topic that given the training by Kenso Act Care Co.,Ltd, who is their supplier, on April 10

th, 2012.

Information on the areas where pesticides are used is recorded in the estate daily on a block basis. This information could be cross check with the active ingredient and amount of use in daily basis

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(4.6.3, 4.6.5, 4.6.10 and 4.6.11).

Personal safety equipment or PPEs which include mask, rubber glove, and rubber boot are provided to workers who are responsible for chemical spraying. Workers are encouraged to wear PPEs properly before spraying as showed in Figure 8. From interview and inspect on the list of worker who

deal with chemical, it was found that majority of pesticide operators were male. Even though female sprayer were also found during the assessment but there were no female workers either pregnant or breast feeding operated with the pesticides during the assessment (4.6.4 and 4.6.6).

Figure 8 Personal safety equipment for worker who sprays agrochemical

Annual health check up is done for all workers including the worker who deals with agrochemical. Health check up cost for workers who work in estates has been supported by the estates. Their health have been examined by Lamthap District Hospital for year 2012. Any worker found sick from his job is immediately moved to a less hazardous job and given medical treatment until recovers. Even though the Lamthap mill and estate supported the health check up for their employee in 2012, but health of chemical spraying workers work at Lamthap estate have not been examined by Lamthap District Hospital during that time. Interview with the chemical sprayer, Mrs. Prayom, confirmed that she had never been examined by Lamthap District Hospital. For this reason, it was raised as minor non-conformity under indicator 4.6.7.

Company practice is to restrict the use of Paraquat to control of weeds in both immature palms and mature palms. Reduction of pesticide use is already planned in the continuous improvement (4.6.8). Estate has provided the cleaning and washing area for dealing with the containers and equipments used after spraying. Workers are not allowed to bring container and equipments used for spraying to clean at their houses. Inspection at the washing place showed that there was no risk of contamination to water resources because the washing place is provided with the suitable drainage system and septic tanks. The washing area is not located in nearby either water resources or worker house (4.6.9).


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

Univanich has a safety, health and environment policy which approved by Managing Director on 8 April 2012. The policy is displayed on notice boards throughout the operation sites. Occupational health and safety plan is also documented by each mill and estate separately. Occupational health

Yes


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and safety plan that established for year 2012 consists of the elements such as serious accident, lost time accident, non-lost time accident and KPI. The result of monitoring of occupational health and safety will be reported to either estate manager or mill manager in daily basis. From the record of Lamthap mill and estate since January 2012 till date of assessment, there was no any serious accident occurred during this period. The accident occurrence of each estate will be summarized annually to calculate the lost time accident (LTA) rate. The occupational health and safety committee that appointed by each mill and estate will be responsible to monitor the consequence of occupational health and safety implementation via the meeting on quarterly basis for estate and monthly basis for mill. Latest the third meeting of occupational health and safety committee for year 2012 at Lamthap estate was done on 2 September 2012 and showed that there were no any concerns on health and safety raised by worker representative. Inspection of workplaces at the mill and estate and observations of tasks showed that safe work practices were being implemented (4.7.1, 4.7.2 and 4.7.8).

Even though there were no records of accident which affected the health of workers and workers engaged through contract, a proper recording system is in place and ready for use at any time which includes: how and when the accident occurred, who was injured, root cause of accident, and the mechanism to deal with accident cases. Estate and mill have a documented annual training programme for safety. All new hires and existing workers undergo a safety induction programme that is supplemented with workplace specific training. At the estate, the safety awareness training programme is based on briefing at morning meeting conducted by estate manager. At the mill, training in safety topics in particular the use of PPE is carried out at the shift briefings. Safety training for each work station is a component of SOP training. First aid training is also given to all workers. The latest training on first aid at Lamthap estate was done on 31 May 2012. Workers were given information about the first aid kits available at the workplace, including location of the first aid kits. First aid kits are also provided in sufficient numbers comparing to the number of worker, maintained and stocked properly. First aid kits provided by the estates consist of disinfectant solution, hand cutting cover, medicine, plaster treatment, for example (4.7.3, 4.7.4 and 4.7.9).

Pesticide training is carried out in-house and includes an evaluation of the sprayer’s understanding. For chemicals which are assessed to be potential injury hazard, there is a SOP for safekeeping of the toxic chemicals and also for keeping records on their use. An area sprayed with a toxic chemical would have a signboard posted warning people of the danger and telling them to keep away. Risk assessment is established under the collaboration between estates and mill. Based on the result of risk assessment, it revealed that all activities of estate and mill have been taken into account to identify the risk that could occur and affect to worker’s health and safety. There are 3 levels of identified risk ranging from low risk (33-55 scores), medium risk (55-77 scores) and high risk (77-100 scores). At the mill; for example, identified risk consists of working with the boiler, working with high voltage of electricity, working with the absence of oxygen area, process of hooking a chain in sterilizer station and working with hazardous chemical. At the estate; for example, identified risk consist of working with agrochemical and working with sharp weapon especially in harvesting activity (4.7.5). Based on the identified risks, appropriate protective equipment and gears for workers who have to work under these activities are considered and needed to be prepared according to their migration plan. Estate and mill have established and identified the list of required PPEs which described in the risk assessment. For instance, mill worker who has to process of hooking a chain in sterilizer station need to wear ear plug. Estate workers who deal with the agrochemical, they have been provided with mask, eye protection, gloves, water proof apron, and rubber boots. Harvesters are supplied with a safety helmet and sickle cover. PPE is also available for harvesting contractors when they have been employed in particular of time (4.7.6).

Occupation health and safety are held quarterly at each of the estate and are held monthly at each mill. The management representative appointed by Managing Director of Univanich and worker representative of estate and mill are key players to have a meeting together. The topic of discussion includes a report from each functional area, accidents, incidents and any concerns on health and safety raised by the workers (4.7.7).


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All staff, workers, smallholders and contractors are appropriately trained.

Lamthap mill and Lamthap estate have an annual training program for calendar year 2012 which approved by Engineering Manager on 11 November 2011 (The annual training program is integrated for all mills and estates of Univanich). Training program is set out the schedule of training for each mill work station and estate tasks. The training program; for example, includes firefighting, boiler operation, air pollution monitoring, waste management, handling of hazardous wastes, integrated pest control and agrochemical spraying. New face employee will be given the training on company’s rules and regulation, health and safety concerns and relevant work instruction to their area of work. Harvesting contractors are also included in safety training conducted by the estate. Each mill and estate hold records of training carried out by both external and internal trainers as well as details information on the training topic and material used for the training. Records are also maintained of internal training for each work station for on-the-job instruction. For example, Lamthap estate carried out the training for chemical use on 9 September 2012 to sprayers. Training records for other topics were checked during the audit. For independent farmers, the estates are considering to start giving the training on agronomic practices (4.8.1 and 4.8.2)

Yes


Environment aspects of estate 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.

Univanich has appointed their staff who hold whether Bachelor and Master degree on environmental background to assess the environmental impact by using the approach an environmental management system (ISO14001). Permanent officer who works at the Krabi Provincial Environmental Office was also invited to join the assessment team as the consultant. The environmental impact assessment has covered all activities that might cause adverse impacts on the environment such as noise, air quality, water quality, land use and etc. The environmental risk assessment was also conducted to determine risk scale ranging from 3 levels; low (normal), medium (abnormal) and high (critical). Score of possibility of adverse effects is used to rank the impacts. Based on the system of scoring, if the result of scoring was higher than 54 scores, the mitigation plan need to be established. For example, either emission or explosive from boiler operation had a highest score of possibility of adverse effect and could result in huge damage on both social and environmental aspects. To deal with this case, Wet scrubber is also installed at every mills including Lamthap mill to remove pollutants from a furnace flue gas or from other gas streams. The impact on environment from operation of estates; for example, consists of using persistent chemical and erosion. Documented procedures to mitigate these impacts on environment have established as described in the criterion 4.1 (5.1.1 and 5.1.2).

Yes


The status of rare, threatened or endangered species and High Conservation Value habitats, if any, that exist in the estate or that could be affected by estate or mill management, shall be identified and their conservation taken into account in management plans and operations.

Currently, HCV assessment was done by the facility themselves. It has not been approved yet by RSPO appointed assessor as listed in RSPO’s website. From this reason, it was raised as Major non-conformity which covered all criterion of 5.2 whether indicator 5.2.1, 5.2.2, 5.2.3, and 5.2.4.

Based on the result of HCV assessment done by the facility; however, it revealed that there are no endangered species listed according to the red list under IUCN and Office of Natural Resources and

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Environmental Policy and Planning (ONEP) of Thailand. Either IUCN red list or list of endangered species in ONEP has been confirmed with the stakeholders who live surrounding the estates whether they are still found in the estate. Result of interview with the stakeholders during public consultation meeting on 20 March 2012 confirmed that neither IUCN red list nor list of endangered species in ONEP were found in the Lamthap estate.


Waste is reduced, recycled, re-used and disposed of in an environmentally and socially responsible manner

Waste products and all sources of pollution are identified and listed in the document no. FV104 revision 00 and updated in December 2011 (5.3.1). Lamthap mill and Lamthap estate have a waste management plan code FV 301 revision 00 listing each of the solid and liquid wastes generated by the mill and estate together with a statement of the method of treatment and reuse, recycle or disposal. For example, decanter cake, POME, POME cake and waste water generated by mill are listed as available waste for reuse in the estate. The plan includes maps showing the locations of the waste management facilities (mill and estate called “waste home”), effluent ponds and landfill. Waste home is also available at Lamthap mill like other mills. It is the permanent storage which provides sufficient containment system to deal with used liquid chemical in laboratory and obsolete lubricant/oil. Solid wastes can be collected at the waste home as well with separation zone away from the area to deal with liquid chemical. Lamthap mill and Lamthap estate maintain records of scheduled wastes collected by authorized company namely Mahachai Aeksirioil who hold the license number 3-106-5/46 issued by Department of Industry Work. For example, used lubricant was sold to Mahachai Aeksirioil weekly. For schedule waste (empty pesticide containers) were also kept in the permanent storage sheltered from rain and with the sufficient containment system to prevent any leakage of agrochemical that may remain in the containers due to improper cleanup after use to environment. Empty containers were disposed by the supplier periodically (5.3.2).

Fibre is used as fuel for each of the mill boiler and a small quantity that is surplus to requirement is shared to another mill where required those fibre. Inspection at the estate confirmed that EFB and fronds are recycled to the estates. 100% of EFB is reused in the Lamthap estate. POME is also used as organic fertilizer for palm oil blocks where are located nearby the wastewater treatment pond (5.3.3).

Yes


Efficiency of energy use and use of renewable energy is maximized.

Univanich and estates have a plan to strive for continuous efficiency improvement in the use of renewable energy. Renewable energy that generates from either biogas or turbine (palm fibre is used as fuel in boiler) is the most successful of Univanich. Records of electricity generated by biogas and turbine at Lamthap mill during January-October 2012 showed that approximately 3,570.45 MWhr was generated by turbine and about 1,003.93 MWhr was generated by biogas. Electricity generated by biogas is used to supply to crushing mill. The electricity generated by the steam turbine and biogas was increased from year 2011. However, purchasing electricity from PEA is still required. Only 572.3 MWhr that purchased from PEA has been recorded for use during January – October 2012. The use of oil (liter) or fossil fuel for any purposes recorded during June – September 2012 were 191, 212, 179 and 195 liter, respectively. The estates have optimized the harvesting schedule in order to minimize the use of diesel fuel for transporting FFB to the Lamthap mill. Based on the total amount of fossil fuel used (liter) during June - September 2012, it could generate one ton of FFB at rate of 0.83, 0.95, 1.51 and 1.38, respectively (5.4.1 and 5.4.2).

Yes

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 guidelines or other regional best practice.


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Inspection at Lamthap estate confirmed that there was no evidence of open burning in the estate. For replanting purpose, the excavators fitted with a chipping bucket are used for felling and shredding in the mature palm oil trees. The oil palm that are shredded in the field is thus realizing organic matter and nutrients back to the soil and improve soil fertility. To demonstrate the effectiveness of zero burning polity, the minutes of the public consultation meeting on March 20

th, 2012 addressed that

leader of local communities who participated this meeting confirmed that land burning during replanting at Lamthap is never carried out. For municipal waste generated by households and office, it will be disposed by landfill.

Yes

Criterion 5.6

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

Univanich has documented a pollution and emission control plan FV102 revision 00 dated 4 January 2012 that identifies the sources of emissions and methods for control. This documented plan will be shared and used to other mills. Environmental quality monitoring report done by Environmental Research and Technology Co.,Ltd is a good resource that has been taken into account to develop the pollution and emission control plan. Based on this plan, pollution in mill are mainly from boiler, generator and vehicles. Managing Director of Univanich has appointed the health, safety and environment (HSE) committee. They will have a meeting monthly basis in order to monitor not only on health and safety but also for environment concerned. For the example, emission from the flue gas or from other gas streams that need to be controlled and removed by wet scrubber is the outstanding from HSE committee. Work instruction for prevention of pollution from the boiler or streams was also established by HSE committee (5.6.1 and 5.6.2).

The monitoring of the emission parameters has been done according to the requirements of Department of Industry Work. The monitoring carried out at proper intervals is aimed to ensure that the inevitable pollution and/or emission released from the operation of mill will not impact negatively on the overall health and safety of the neighboring communities and also the environment at large. The Safety Technology Office will check and test the operation of boiler and sterilizer for example to ensure that they still be able to operate safely daily. The emission of these machines such as noise, air quality, and water quality are being tested and monitored by Environmental Research and Technology Co.,Ltd, an external independent laboratory in every 6 months. Results of environmental quality are used to determine the compliance with the national standards i.e. Industrial Emission Standards, Notification of the Ministry of Industry, dated December 4th 2006, Opacity Standard, Notification of the Ministry of Industry, dated December 4th, 2006 and Notification of the Ministry of Natural Resources and Environment, dated December 9th, 2005. It is needed to be ensure the compliance with the national standards because the environmental quality monitoring report done by Environmental Research and Technology Co.,Ltd has to be submitted to the Department of Industry Work (5.6.3).

For POME from Lamthap mill, it will be used for biogas digester and irrigated in the Lamthap estate. Effluent treats in anaerobic ponds and dispose of the treated effluent by land application. Latest monitoring of BOD in effluent was done on 15 September 2012 and found BOD level after treatment of 100 mg/L. Removal of sludge in the wastewater treatment ponds is planned to be implemented by 2013 to ensure that BOD level after treatment will not exceed than 20 mg/L (5.6.4).

Yes

Criterion 6.1

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

Social impact assessment was carried out by qualified staffs under the recommendation of the permanent officer of Krabi Provincial Social Development and Welfare Office. SIA was done through a participatory approach during the public consultation meeting in each mill and estate.

Yes


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Questionnaire is also used to evaluate participant’s opinion. Participants signed an attendance sheet to confirm their participation. Siam mill and estates retained copies of all attendance records and minute of the meeting.

Inspection of documentation at sites visited showed that SIA report and records are held for each meeting carried out for the SIA process including notes of the main point of discussion. Based on these reports, it confirmed that the stakeholders have not been affected by either mill or estate operation. However, stakeholders are free to give their concerns anytime. It is responsible of estate manager or mill manager who designated by Managing Director of Univanich to handle these concerns from the stakeholders in order to ensure that mitigation plan can be done immediately (if any) (6.1.1, 6.1.2 and 6.1.3).

Criterion 6.2

There are open and transparent methods for communication and consultation between growers and/or millers, local communities and other affected or interested parties

Communication and consultation management guidelines are developed and documented. This guideline is recently reviewed in May 2012 after the first stage audit (pre-audit) done during 6-7 April 2012. Based on the communication and consultation management guidelines, the public consultation meeting is planned to be done annually in order to ensure that the concerns of affected persons or interested parties will be presented and considered at the appropriate stage (if any). The program of public consultation meeting to be discussed composes of policy of mill and estate, procedures related to how to give complaint and grievance, steps to deal with complaints and grievance, how to request for reviewing documents relating to environmental, social and legal issues, transparency, policy related to discrimination, respect to the grouping as the worker union, sexual harassment, EIA, SIA, risk assessment, occupation, safety, mitigation plan and possible impacts (6.2.1).

Mill and estate manager are the persons responsible for communication with affected persons or interested parties. They have been appointed by Managing Director of Univanich on April 8

th, 2012

(6.2.2). A list of stakeholders include local communities, statutories, local governments, Islamic religious leader, head of communities, NGO (if any), contractor, women representatives are kept and maintained properly. The list of stakeholders includes contact details and address so that communication with those stakeholders can be done immediately. The change of person on the list will be monitored by the mill or estate manager. Result of the public consultation at Lamthap mill on March 20

th, 2012 found that there was good communication between estate and stakeholders (6.2.3).

Yes

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.

The complaints, grievance and dispute procedure is documented by the central office of Univanich in April 2012. Not only stakeholder but also workers, supplier and customer can give the complaints and grievance to mill and estate. When the complaints and grievance were raised, it is responsible of mill and estate manager to handle and resolve complaints. Based on the minute of public consultation meeting at Lamthap mill on 20 March 2012 revealed that there was no evidence of dispute and complaints raised by stakeholder, community leader, governmental officers, and local communities even though they have known the right to give the complaints and grievances (6.3.1). It was noted that only positive responses from stakeholder during an interview have been observed. For the receiving external complaints and grievances, complaints box is used to receive the complaints and grievances.

The documented complaint, grievance and dispute procedure also states that in case a dispute is unable to be resolved by two parties, the matter will be referred to the court for a final solution (6.3.2).

Yes


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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 stake-holders to express their views through their own representative institutions.

Univanich follows the Land Development Act B.E. 2551 (2008), which details the acquisition and type of land right have been addressed. As Univanich holds land deeds and contracts for all land used for oil palm cultivation; therefore, the customary right do not apply. Moreover, based on the results of public consultation meeting for all estates and mill as well as interviewing with local communities, it confirmed that there is no current claim on customary right over land (6.4.1 and 6.4.3).

Due to no customary right under the Land Development Act B.E. 2551 (2008), the compensation will be made according to the decision of the independent arbitrator or court of justice. Under the provisions of the Act, the outcomes of compensation determinations are needed to be publicly available (6.4.2).

Yes

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.

Minimum wage payment is the common term that the company needs to follow as it is compulsory required by Department of Labor of Thailand. The minimum wage for Krabi province during the period of assessment is 257 Baht/day nnounced by Krabi provincial labor office on 5 March 2012. The salary, wage and conditions of work that conformed to the legislation of Department of Labor are described in the contracts signed between the company and all workers. The contract of each employee is kept at the central office of Siam Palm mill and is also given to worker for copied one. The terms and conditions specified in the contract are in line with all the legislations such as working days, working time, salary levels, regional minimum pay and employee insurance. The contract and payment records of chemical spraying worker, Mrs. Prayom, was sampled. Inspection of payment record given to chemical spraying worker, Mrs. Prayom, was 12,000 Baht/month. The average daily wage given to this worker is complied with the legislated minimum wate of 257 Baht/day (6.5.1).

Result of inspection on the contract for harvesters found that their contract didn’t provide necessary information regarding to annual leave, cultural holiday, any deduction and other benefits according to the company’s rules which has been approved by Department of Labor. This was the consequence of the progress to transfer the estate’s contractors becoming the company’s workers. Therefore, it was raised as as Minor non-conformity under the indicator 6.5.2.

All employees even contractor have been provided with the suitable housing, water supplies, medical care and welfares by the company. 2 bedrooms with one separate bathroom are provided for each house so that worker can bring their family to live together. Estate clinics provide medical treatment for staff, workers and their family at no cost. Water and electricity are provided to each house. Water tanks are also provided for the workers to trap and store rain water for using in drought and when water supply is not being used. Residents are allowed to cultivate small kitchen gardens at their house. Playing fields and playgrounds are also provided for children and are located at the housing area. For school age children, the estate provides free school bus for transporting of all children to attend the school. The company also provides school uniforms, shoes, school bags and stationery to each child at the beginning of school year. Scholarship for child who has good GPA is also allocated by the estate (6.5.3).

NC 3 of 3

Criterion 6.6

The employer respects the right of all personnel to form and join trade unions of their choice and to bargain


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collectively. Where the right to freedom of association and collective bargaining are restricted under law, the employer facilitates parallel means of independent and free association and bargaining for all such personnel.

Univanich policy that signed by Managing Director on 8 April 2012 is to allow staff and workers to join a labor union. The policy is displayed at the notice boards of the estates and mill. Currently, workers in all sites didn’t either form the labor union or join the labor association during the period of assessment (6.6.1). Instead of labor union, workers in each estate will elect their own leader to be worker representative. Worker representative will be responsible to raise issues of concerns to the estate manager. Meanwhile, all workers still have the right to raise their concerns anytime. For the meeting between employee and representatives of worker at Lamthap estate, the last meeting was done on 2 September 2012. Management representatives, representatives of worker, women representative and security officer have joint that meeting and discussed in relevant topics. The main matters that discussed were included RSPO, health and safety concerns and welfares (6.6.2).

Yes

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 programs. Children are not exposed to hazardous working conditions.

Inspection of records at the Lamthap mill and Lamthap estate confirmed that no workers under 18 years of age were observed either at any work location or in the contract between company and worker. Interview with the HR manager also showed that checks of identify card of worker are carried out prior to hire. Child labor is the one of policy of Univanich displayed on the notice board of either mill or estates (6.7.1).

Yes

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.

Univanich anti-discrimination policy is signed by Managing Director on 8 April 2012 and displayed on the notice boards at the Lamthap mill and Lamthap estate. This policy is socialized in the contract with workers. Interview of staff and workers indicated that they have treated equally under of the equal opportunities policy. Not only existing workers but also incoming new face employees are treated equally. The template of job vacancies announcement was developed. It was observed that details of job vacancies to be posted in the notice boards indicates only position that is looking for, basic qualification either education background or working experience. Interview with staffs and migrant workers who moved from the north-eastern part of Thailand confirmed that there was no discrimination in relation to ethnicity, religion or gender. Inspection at worker house and records also showed that migrant worker and worker from local communities are live together at worker houses as well as rate of salary payment for migrant worker and local worker are the same (6.8.1 and 6.8.2).

Yes

Criterion 6.9

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

Univanich policy on prevention sexual harassment and other forms of violence against women is documented and displayed at the notice boards of the Lamthap mill and Lamthap. This policy was signed by Managing Director on 8 April 2012. Women representatives are elected among the female workers at the Siam mill and estates. They are also the member of HSE committee which the gender committee is a part of them. During the HSE committee meeting, women representative will be responsible to raise any concerns on sexual harassment and any violence against female workers to the management representatives (if any). The occurrence of sexual harassment and any violence

Yes


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was confirmed thought the minute of meeting and during the interview of female staff and workers. Results confirmed that no issues of concerns on harassment and violence to women were raised (6.9.1).

In case of any violation to women, the procedures to deal with the violation case have been trained to women employees in order to ensure that they understand the grievance mechanism. Based on the result of interview women employees, it confirmed that that they understood the policy and knew the grievance mechanism for complaints such as go to any members of gender committee or go to estate or mill manager who appointed by Managing Director as the management reprehensive to resolve any concerns of workers (6.9.2).

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

Univanich has made fair, legal and transparent agreement with their suppliers and independent growers. Even though there are no purchase contracts to bind with independent growers, they will be informed by the mill of daily FFB price. The price of FFB is determined by the purchasing department of Siam Palm mill according to the manual of FFB purchasing (OFP manual-pricing mechanism/calculation). Then, the results of daily FFB price will be shared to among mills. The daily price of FFB will be posted at the mill gate for 3 possible grades of FFB with OER at 13%, 15% and 17%. The FFB price posted at Lamthap mill gate on 10 October 2012 was 3.6 Baht/kg of FFB. Records of mill gate price last year were also observed and found that they are available to the public when needed (6.10.1 and 6.10.2). It was surprised to observe that the payment to independent growers comparing to the gate price throughout year 2012 was different. In fact, Univanich has paid higher than FFB price posted at mill gate as strategy to attract more to independent growers to sell their crop to mill. Interview of FFB supplier (independent grower) confirmed that payment are made in a timely manner and no issues of concern from independent growers were raised (6.10.3).

Yes

Criterion 6.11

Grower and mills contribute to local sustainable development wherever appropriate.

Univanich has operated the corporate social responsibility since the establishment of the company even though they have not been certified for CSR. Result of interview to community leader who lives in this community more than 60 years confirmed that Univanich has done many things for the local communities and governmental sectors such as local road construction/maintenance, allow local communities to use their roads for transporting and reduce the distance, young oil palm donation, recovery mangrove area, donation their land for villager, donations to local school, and other activities requested by local communities and governmental sectors, for example. In the last decade, Univanich has provided the training for smallholders and independent growers for sustainable palm oil cultivation without any charges. This education given to independent growers will be done annually.

Yes

Criterion7.0

No new planting planned on any estate included in the scope of this assessment.

Principle 7 is not applicable to this assessment.

Criterion 8.1

Growers and mills regularly monitor and review their activities and develop and implement action plans that allow demonstrable continuous improvement in key operations.

Estates use pesticides for control of palm pests only when necessary. Monitoring of the records either use of other material (EFB and POME) to replace chemical fertilizer, use grass cutter to replace herbicides, physical control of insect outbreak and IPM application in the last 3 years was

Yes


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done by estates and found that number of areas (ha) and amount of use of EFB and POME were increased year by year. Restrict the use of paraquat to control the weed has been developed as the action plans for the next 3 years (8.1.1).

The environmental improvements are based on issues identified during the implementation of EIA and risk assessment. An example is the installation of wet scrubber to reduce emission from flue gas and boiler. All environmental parameters need to be in compliance with the national standards as the environmental quality reports need to be submitted to Department of Industrial Work (8.1.2).

Lamthap mill and Lamthap estate have fully utilized wastes from processing either EFB, POME, decanter cake or frond stacking to recycle in the field. Mill and estate monitored the amount of waste recycling in the last 3 years and found that recycling of POME in the estate was increased every year. Waste collection site or worker called “waste home” has constructed to segregate the waste between recycling waste and waste that need to be disposed (8.1.3).

Lamthap mill and Lamthap estate focus on the control of pollution from point source especially emission from the mill. Wet scrubber installation is the one of example of measures to control the pollution (8.1.4).

Social improvement will not focus for the worker but also for the stakeholders. The reduction of accident occurred by either mill or estate as well as improvement of amenities and worker house are monitored in the last 3 years by the estate and mill. Communication with the stakeholder periodically is a good example to ensure that any concerns on social aspect will be resolved by management representative of mill and estate immediately (8.1.5 and 8.1.6).


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3.2 Identified Non Conformances

This section gives an over view of new or revised non-conformities raised during this assessment and of action taken to close out non-conformities rose during the previous assessments.

3.2.1 Detail of Non Conformity


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Non Conformity Report – Univanich-001

Pre-Audit Surveillance Audit No.____ Re-Audit ID No. :

Certification Audit Re-certification Audit Extension Audit Date : October 8-12, 2012

Company : Univanich Palm Oil Public Company Limited

Mgt. Rep. : Dr. Palat Tittinatchanon

Lead Auditor : CHAIYAPORN SEEKAO Auditor(s) :

Standard(s) : RSPO P&C TH-NI (June 07, 2012)

Date of issued : October 12, 2012 Discussed with : RSPO Team

Location : TOPI mill and all estates

RSPO – Criterion : 4.6.7

Annual health check-up for staff working with chemical pesticides –

Provide regular health check-up for staff working with chemical pesticides

Record the results of staff's health check

In case where workers are suspected of being affected by chemical pesticides, the worker has to be taken off the related chemical pesticides works until further investigation confirms that he/she is not affected or if affected, he/she has recovered after treatment.

Description of Finding/Objective Evident:

Chemical spraying workers who work with chemical pesticide at Lamthap estate have not been received heath check-up for years. Even though some of them were sick from heart disease and other sickness that may has to be moved for lighter job instead and waited for further investigation

Classification Major Minor

(Management Representative) (Lead Auditor) (Auditor(s))

Correction of nonconformity (by company): Date of correction :

Health examination done by Lamthap District Hospital for chemical spraying workers who had

never been checked was completely done on October 16th, 2012. Health examination for Mrs.

Prayom, who has been interviewed during the assessment, was also done at the same date.

The results of health examination for all chemical spraying workers revealed that no one of

chemical spraying workers has any serious condition that may be caused by the chemicals

(Mng. Rep.)

Cause of nonconformity (by company):

At the time of health examination by Lamthap District Hospital, the chemical spraying workers were not able to join with other colleague

for health examination as they have been assigned by the estate to do the job.

Corrective action planned (by company): Deadline for implementation :

Estate has coordinated with the Lamthap District Hospital to examine the health of chemical

spraying workers who were missed for health examination by November 2012.

(Mng. Rep.)


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Lead Auditor : CHAIYAPORN SEEKAO Auditor(s) :



Location : TOPI mill and all estates

RSPO – Criterion : 5.2

5.2.1 (Major) Assessment and identification, if any, of high conservation values (HCVs) areas within the boundaries of plantation or mill

5.2.2 (Major) HCV habitats and Endangered, Rare, Threatened Species (ERTs) conservation management plan

5.2.3 (Minor) Compliance with relevant legal requirements on conservation of species and habitats

5.2.4 (Minor) Avoiding damage to and deterioration of HCV habitats


5.2.1: Even though the HCV assessment report has been done by the facility, but it has not been approved yet by RSPO appointed

assessors.

5.2.2, 5.2.3, 5.2.4: Due to the non conformity for criteria 5.2.1 especially identification of HCVs areas, the relevant steps required for indicator 5.2.2, 5.2.3 and 5.2.4 are also needed to be approved by HCV approved assessor




HCV assessment is done by HCV approved assessors who works at Forest Industry

Organization, Ministry of Natural Resource and Environment of Thailand. Based on the results

from HCV assessment, HCV1.1, HCV1.2, HCV1.3, HCV4.2 and HCV5 were found at TOPI

estates. Total area of HCVs is 676.65 ha. Conservation management plans to avoid damage

and to prevent the deterioration of HCV habitats were established and suggested by Forest

Industry Organization

(Mng. Rep.)


The company expected to use Thai HCV assessor who got the approval by RSPO for their HCV assessment. However, there was not

Thai HCV assessor approved by RSPO EB before conducting the certification audit


The company will contact approved HCV assessor from Forest Industry Organization to

conduct the HCV assessment

(Mng. Rep.)


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Lead Auditor : CHAIYAPORN SEEKAO Auditor :



Location : All Estates

RSPO – Criterion : 6.5.2

Employment contract between employer and employees/workers in accordance with labour law or agreement with the trade union or

agreement by both parties, specifying details of payment and employment conditions e.g. working hours, deductions, overtime,

sickness, holiday entitlement, maternity leave, reasons for layoff, period of prior notice, etc. - Employment contract should provide

details of employment, taking into consideration the guideline from Labour Protection Act, B.E. 2541 (and its amendments) in

languages understood by the workers or explained carefully to them by a management staff.


Because estate’s contractors have just become the company’s workers; however, labour contract didn’t provide necessary information regarding (1) annual leave (2) cultural holiday (3) any deduction (4) other benefits




The company is in process to convert contract workers to be company employees. The

process is to be completed by first quarter of year 2013.

(Mng. Rep.)


Currently company employs casual contract workers to work in estates for casual harvesting and field

maintenance. During the period of assessment, the company is in process to convert contract workers to be company employees.


1. Casual contract worker will be converted to be company employee by the first quarter of

year 2013

2. The same company rules, regulation and terms and conditions will be used for all company

employees

(Mng. Rep.)


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OPPORTUNITY FOR IMPROVEMENT (OFI):

P&C OFI Location

4.1.1 Revision and date of approval when change on operating procedures for whether mill and estate should be adopted to facilitate in tracking changes and history of operation procedures

All mills and estates

4.5.3 Template of calculation of the toxicity unit should be developed and circulated toall estates for further records rather than developing by individual estate

All estates

4.6 Pallet should be used to store either fertilizer or chemical products kept in the storage in order to prevent the deterioration of products from moisture

Lamthap estate

4.6.2 Master formula of chemical pesticides used in nursery palm oil plot should be posted in visible area for staffs who deal and prepare chemical pesticide in order to easy to see

Lamthap estate

4.6.4 Next calibration date of instruments that need to be calibrated periodically such as biogas measurement meter should be indicated and posted clearly in that instrument

All mills

4.7.3 Template of on the job training (OJT) should be circulated and recorded for completion of training to new face employee rather than using the evaluation format for new face employee

All mills

4.7.5 New machines and facilities which can reduce any affects to occupational health and safety installed for mill operation should be taken into account for reviewing and amendment in the risk assessment. An obsolete practices which no longer in mills should be considered and removed (if any)

All mills

5.1

Representatives of each estate under the responsible of the company can be conducted EIA together using approach of ISO14001

Mitigation plan to reduce identified impacts on environment should be cleary definded how, who, where that need to be mitigated.

Action or implementation according to the mitigation plan should be recored and reviewed periodically rather than using the visual inspection

All mills and estates

5.3.1 Wastes that might be recycled should be listed and educated to relevant staffs in order to support with the waste separation program of facility

All mills

6.5 Even though the facility provided the huge water jar to store the rainfall for being used as drinking water, but the regularly test to ensure that it is always safe for human consumption should be done

All estates


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3.2.2 Resume of Audit Results

See Error! Reference source not found. below.

Table 3-2 Resume of Audit Results

Thailand National Interpretation of RSPO Principles and Criteria

P&C 1.1 1.2 2.1 2.2 2.3 3.1 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 5.1 5.2 5.3 5.4 5.5 5.6 6.1 6.2 6.3 6.4 6.5 6.7 6.8 6.9 6.10 6.11 7 8.1

Status

1 1 1 1 1 1 1 1 1 3 1 3 2 3 1 3 3 1 1 1 1 1 1 1 3 1 1 1 1 1 NA 1

#NC 0 0 0 0 0 0 0 0 0 0 0 2 0 0 0 3 0 0 0 0 0 0 0 0 2 0 0 0 0 0 - 0

Table 3-3 RSPO Supply Chain Standard for Mill

RSPO Supply Chain Certification Standard: Module E – Mass Balance kindly make a revision manually on the table if it is module D

SCC 1.1 a 1.1 b 1.2 2.1 2.2 3.1 3.2 3.3 a 3.3 b 3.3 c 3.4 4.1 5.1 6.1

Status

3 3 3 3 3 3 3 3 3 3 3 3 3 3

#NC 1 1 1 1 1 1 1 1 1 1 1 1 1 1

NOTE: Audited:

“1” Conforming; “2” Minor Non-Conformity; “3” Major Non-Conformity; “NA” not applicable, “#NC” : Number of Non-Conformities found

Table 3-4 Audit Outcome

AUDIT OUTCOME

P&C audit 1 Non-Conformities MAJOR

2 Non-Conformities MINOR

SCC audit

module E 0 Non-Conformities MAJOR

3.3 Issues Raised by Stakeholders

The audit team did not receive any major issues and comments for consideration from the public

consultation meeting on environmental impacts or social performance of the mill and estate operations.

Most of stakeholders agreed that mills and estates of Univanich have had a positive influence in the area.

Interviews with the stakeholder were used to obtain feedback whether positive or negative by using the

following question for example:

Did mills and estates provide information on the RSPO certification exercise including plans for

safety and health to the public and stakeholders?


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Does mills and estates hold regular meetings on community development?

Does mills and estates respond well to complaints in respect of RSPO P&C implementation?

Is there a clear grievance and complaints procedure in the company?

Are there still any complaints on land acquired by estates for planting oil palm?

Is there any environment impact caused by the operations of either mills or estates?

Are there any conflicts not yet solved satisfactorily?

Is there a procedure for settlement of conflicts communicated to the local community?

Does mills and estates meet with stakeholders regularly to discuss on issues on community

development?

Are the workers paid in accordance with government regulations?

Is there a system to disseminate information quickly in emergencies to the local communities

around the palm oil mills and supply bases?

Are there any flora and fauna found in estates or even nearby estates?

Have stakeholder ever asked for any information and data to ensure the transparency for the

estate and mill? If yes, what kind of document did you review?

Results of the public consultation with stakeholders are reported under the principle 6 above.


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4 Certified Organization’s Acknowledgement of Internal Responsibility

4.1 Formal Sign-off of Assessment Findings

I the undersigned, being the legal representative of the inspected company, agree with the contents of this

report and accept the liability in execution of the instructions given in the report.

Signed for and on behalf of

Univanich Palm Oil Public Company Limited

Jakarta – December 28, 2012

Head of Operations, Environment and Sustainability

(Dr. Palat Tittinatchanon)

Signed for and on behalf of PT. TÜV NORD Indonesia – System Certification Management

Jakarta - December 28, 2012

Lead Auditor

(Chaiyaporn Seekao)


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APPENDIX A List of Abbreviations

BOD Biological Oxygen Demand NC Non Conformity

OER Oil Extraction Rate

CPO Crude Palm Oil

CSR Corporate Social Responsibility OSHAS Occupational Safety and Health Assessment Scheme

EFB Empty Fruit Bunch P&C Principle and Criteria

EMS Environmental Management System

FFB Fresh Fruit Bunch PK Palm Kernel

GPS Global Positioning System PKB Perjanjian Kerja Bersama (Collective Agreement)

HCV High Conservation Value POME Palm Oil Mill Effluent

HCVF High Conservation Value Forest PPE Personal Protective Equipment

R&D Research and Development

IPM Integrated Pest Management

RSPO Roundtable on Sustainable Palm Oil

RSPO NI Roundtable on Sustainable Palm Oil National Interpretation

SA8000 Social Accountability 8000

MOU Memorandum of Understanding SIA Social Impact Assessment

SOP Standard Operating Procedure

MSDS Material Safety Data Sheet


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APPENDIX B Draft of Certificate


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APPENDIX C Mass Balance Supply Chain for Mills

STANDARD SOP/Policy/Others Records/Evidence

.1.1

E.1.Documented Procedure

a) Complete and up to date

procedures covering the

implementation of all the

elements in these

requirements.

√ There is a set of SOP developed to ensure the implementation of supply chain mechanism at mill, from receiving FFB, processing, storage, and dispatch CPO.

Master list SOP Mill and Plantation

b) The name of the person

having overall responsibility

for and authority over the

implementation of these

requirements and

compliance with all

applicable requirements. This

person shall be able to

demonstrate awareness of

the facilities procedures for

the implementation of this

standard.

√ RSPO coordinator is in charge and has the authority to monitor the implementation of supply chain procedure, including the recording of incoming and outgoing of sustainable and non-sustainable oil.

There is a letter of Appointment from President Director to RSPO coordinator and its job description as well.

Job Description for RSPO

Coordinator), and Job Description for

Mill Manager)

1.2 The facility shall have documented

procedures for receiving and

processing certified and non-

certified FFBs.

√ All recording of incoming and outgoing certified and non-certified FFB are documented in the Mill Daily Report. The weighbridge ticket for transporting FFBs to the mills has indicated status of FFBs to identify and differentiate between non-sustainable and sustainable FFBs.

Implementation of the mechanism shall be

checked and verified in the surveillance

audit

Sample of Daily and Monthly

Production Report

E.2 Purchasing and goods in

2.1 The facility shall verify and

document the volumes of certified

and non-certified FFBs received.

√ All documents and records of volumes of certified and non-certified FFBs received will be recorded in the Daily Production Report

RSPO procedure will be followed

up accordingly upon certification.

This will be checked during

surveillance audit

Sample of Daily Production Report

Sample of Monthly Production Report

2.2 The facility shall inform the CB

immediately if there is a projected

overproduction.

√ This is not applicable as the mill has not yet received RSPO certification. Sales of

CSPO have not applicable yet.

E.3 Record keeping


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3.1 The facility shall maintain

accurate, complete, up-to-date

and accessible records and

reports covering all aspects of

these requirements.

√ Upon certification, all records will be maintained accordingly.

There will be a daily, monthly and 3 monthly basis report to monitor the incoming and outgoing oil based on the mass balance requirements. There was procedure to maintain records

There was Master List of Record that figure

out all relevant RSPO records, including for

mass balance supply chain

3.2 Retention times for all records and

reports shall be at least five (5)

years.

√

3.3 a) The facility shall record and

balance all receipts of RSPO

certified FFB and deliveries

of RSPO certified CPO, PKO

and palm kernel meal on a

three-monthly basis.

√ a) There was mechanism on how

to calculate mass balance of FFB purchased as well as the CPO and PK to be dispatch through the table Daily Production Report. Standard operating procedure was in progress to be developed.

In the form Daily Production Report, and

Monthly Production Report, it has been

separate calculation between certified and

non certified FFB purchased

The record of implementation of the mass

balance calculation shall be checked and

verified in the next surveillance audit.

b) All volumes of palm oil and

palm kernel oil that are

delivered are deducted from

the material accounting

system according to

conversion ratios stated by

RSPO.

√ NA NA

c) The facility can only deliver

Mass Balance sales from a

positive stock. However, a

facility is allowed to sell

short.

√ This statement will be elaborated in

the procedure of mass balance

calculation

The evidence of this will be checked and


3.4 The following trade names should

be used and specified in relevant

documents, e.g. purchase

√ This statement will be elaborated in

the procedure of mass balance

calculation

The evidence of this will be checked and


E.4 Sales and good out

4.1 The facility shall ensure that all

sales invoices issued for RSPO

certified products delivered

include the following information:

a) The name and address of the

buyer; b) The date on which the

invoice was issued; c) A

description of the product,

including the applicable supply

chain model (Segregated) d) The

quantity of the products delivered;

e) Reference to related transport

documentation.

√ There was standard operating procedure. In this SOP, it was confirmed that all sales invoices issued for RSPO certified products to be dispatched include the information of:

- The name and address of the buyer;

- The date on which the invoice was issued

- Description of the product, including the applicable supply chain model (IP/SG/MB)

- The quantity of the products delivered

There were no records available since the

mass balance supply chain mechanism not

implemented yet. However, the SOP was

completed with format of invoice that

includes all requirements mentioned in the

procedure.


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- Reference to related transport documentation.

E.5 Training

5.1 The facility shall provide the

training for all staff as required to

implement the requirements of the

Supply Chain Certification

Systems.

√ There was training policy issued by

Univanich

There was training records on mass balance

calculation to related staffs., The training

program was available and the

implementation will be checked and verified

on surveillance audit

E.6 Claims

6.1 The facility shall only make claims

regarding the use of or support of

RSPO certified palm oil that are in

compliance with the RSPO Rules

for Communication and Claims.

√ The procedure will be followed up

accordingly upon certification. This

will be checked during surveillance

audit

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