rspo surveillance audit report...1.5 other certifications held (iso etc) 1.6 organizational...

RSPO SURVEILLANCE AUDIT REPORT SIME DARBY – SOU 31 / KOMPLEX LAVANG, OCTOBER 2013

RSPO STANDARD (in current version)

agroVet GmbH -

Head Quarter:

Königsbrunnerstraße 8

A-2202 Enzersfeld

Austria

www.agrovet.at

RSPO Audit Report Sime Darby SOU 31/ Oct. 2013

2

Enzersfeld |18.11.2013, corr.

TABLE OF CONTENTS

1. Scope of the Certification Assessment 1.1 General Comments

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

1.3 Description of supply base (fruit sources)

1.4 Date of plantings and cycle

1.5 Other certifications held (ISO etc)

1.6 Organizational information / contact person

1.7 Tonnages certified

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

2.2 Date of next surveillance audit

2.3 Lead Assessor / assessment team

2.4 Certification Body

2.5 Outline of how stakeholder consultation was managed

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

3.2 Identified Non-Conformances and Noteworthy positive comments

3.3 Issues raised by stakeholders

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

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

5.2 Attachments to report: divers copies, records, checklists, pictures and documents

5.3 Abbreviations


3


1. Scope of the Certification Assessment

1.1 General Comments

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

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

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

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

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

palm oil (CPO) output annually.

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

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

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

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

http://www.simedarbyplantation.com/


4


1.1.2 RSPO Membership of Sime Darby Plantation

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

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

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


5


1.1.3 Corporate Information Sime Darby Plantations

1.1.3.1 Organisation Chart


6


1.1.3.2 Geographical Coverage

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


7


1.1.3.3 World wide activities

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

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

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

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

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

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

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

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

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

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

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

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

genome.

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

sustainable products and services in the plantation industry.


8


1.1.3.4 Sime Darby Plantation in Malaysia (Palm Oil Plantation)

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

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

Peninsular Malaysia.

Estate locations

Northern (Kedah, Perak, Selangor and Pahang) 44

Southern (Negeri Sembilan, Melaka and Johor) 50

East Malaysia 35

Total 129

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

company’s Fresh Fruit Bunch (FFB) harvests.


9


Mill locations

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

Southern (Negeri Sembilan, Melaka and Johor) 13

East Malaysia 10

Total 36

Prospects and Strategic Plan

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

10 percent of the total planted hectarage in Malaysia.

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

yielding clonal palms.

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

Strategic Operating Units (SOUs), zones and regions.


10


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

Zone MT/ha Zone MT/ha

Kedah/North Perak 21.35 Melaka/Johor North 23.38

Perak South 24.65 Johor Central 21.09

Pahang 21.77 Johor South 19.91

Selangor West 25.85 Sabah North 20.64

Selangor Central 24.52 Sabah Central/South 25.70

Negeri Sembilan 1 21.34 Sarawak Lavang 19.12

Negeri Sembilan 2 23.01 Sarawak Rajawali/Pekak 21.83


11


1.1.4 History of Operation (Komplex Lavang / SOU 31)

Lavang Estate (Zone) was a former Golden Hope Project which became Sime Darby after both companies merged.

The Lanvang Zone commenced in year 1996 and was officially opened on 20th Septemer 2000.

The total project however was completed by 2004.

1.1.5 Structure of Operation (Komplex Lavang)

Initially it was divided into 4 Estates:

1) Lavang 1) Lavang

2) Rasan 2) Rasan

3) Kelida 3) Kelida

4) Belian 4) Belian

5) Lavang Special

In 2008 the Lavang Estate was divided into Lavang and Lavang Special, which means from there on it was operated with 5

individual esates. So the new status is:


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

1.1.3.1 Sime Darby Plantation Malaysia

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

1.1.3.2 Komplex Lavang

Name

of Mill

Name of SOU Planted

area

Address Status Nov. 2012

Year of

Certification

Surveillance Audit

first

conducted

(year)

second

conducted

(year)

next

scheduled

(year)

Lavang

Mill

SOU 31 (Lavang) see

below

KM 72, Jalan Bintulu Miri,

97008 Bintulu, Sarawak

30.12.2011 2012 2013 2014


13


1.1.6 Standard Documents

The audit was carried out on base of:

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

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

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

approved NI dated 26th April 2008)

1.1.7 Audit Reports

a) Certification Audit Report 2010

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

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

b) First Surveillance Audit Report 2012

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


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1.2 Location

1.2.1 Map of SOU 31 – Komplex Lavang


15


1.2.2 Map of Estates


16


1.2.3 Geodata

Mill

GPS coordinate

Latitude Longitude

Kilang Sawit Lavang N3.26024 E113.67198

Estates

GPS coordinate

Latitude Longitude

Lavang Estate N3.26024 E113.67198

Rasan Estate N3.57145 E113.656

Belian Estate N3.527 E113.642

Kelida Estate N3.53875 E113.681

Lavang SE Estate N3.55467 E113.621


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1.2.4 Hectarage Statement (hectares Status November 2013, yields status of FY 2012/2013)

Estates Total (ha) Planted (ha) FFB Yield (ton)

Lavang Estate 1,824.39 1,787.81 30,019.63

Rasan Estate 3,418.83 3,266.73 67,636.95

Belian Estate 2,885.84 2,629.71 38,153.75

Kelida Estate 2,460.00 1,338.72 22,093.57

Lavang SE Estate 1,193.73 1,145.45 23,011.695

TOTAL 11,782.79 10,168.42 180,915.60


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1.3 Description of supply base (fruit sources)

1.3.1 Estates

1.3.1.1 Independent settlers, outgrowers and subcontractors

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

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

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

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

1.3.1.2 Subcontractors

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


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1.3.1.3 Operational structure of the estates (Status November 2013)

Structural Organization – Estates

Estate Number of

fields (according new

field structure)

No. of

Independent

Settlers,

Smallholders

or

Outgrowers

Involved Subcontractors (Transporting

companies, others)

Lavang Estate 18 1 10

Rasan Estate 39 1 8

Belian Estate 30 13 6

Kelida Estate 21 0 9

Lavang Estate

(Special) 15 0 0


20


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

Nr. Supplier to Kilang Sawit Lavang Deliveries FY 2012/2013

mt (Metric tons)

1 Subis Plantation Sdn. Bhd. 10, 291.66

2 - -

3 - -

TOTAL Amount 10, 291.66


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1.3.2 Mill

Location Kilang Sawit Lavang


97008 Bintulu,

Sarawak.

Malaysia

Management Mr. Muftahuddin Bin Fakeh

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


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1.4 Date of plantings and cycle – Status October 2013

Planting Cycles – Ladang Lavang

Phase / Field

(according former field

identification system)

Total size

(ha)

1st Planted Already Replanted Replanting

scheduled

Currently under

production

(ha)

Currently

unproductive

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

97A 65.05 1997 65.05 - - - - 65.05 -

97AA 102.62 1997 102.62 - - 2016 102.62 102.62 -

97AB 64.32 1997 64.32 - - 2016 64.32 64.32 -

97AC 91.84 1997 91.84 - - - - 91.84 -

97A1 51.02 1997 51.02 - - - - 51.02 -

97A1A 92.11 1997 92.11 - - - - 92.11 -

97A1B 116.21 1997 116.21 - - 2017 116.21 116.21 -

97A1C 93.16 1997 93.16 - - - - 93.16 -

97A1D 64.26 1997 64.26 - - - - 64.26 -

97B 109.35 1997 109.35 - - 2015 109.35 109.35 -

97BA 108.78 1997 108.78 - - 2015 108.78 108.78 -

97BB 81.69 1997 81.69 - - 2015 81.69 81.69 -

97BC 116.35 1997 116.35 - - - - 116.35 -

97BD 63.27 1997 63.27 - - - - 63.27 -

97B1 85.79 1997 85.79 - - - - 85.79 -

97B1A 115.89 1997 115.89 - - - - 115.89 -

97B1B 91.18 1997 91.18 - - - - 91.18 -

97B1C 63.23 1997 63.23 - - - - 63.23 -

98A 211 1997 211 2012 211 - - - 211

Total 1,787.12

1,787.12

211

582.97 1,576.12 211.00


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Planting Cycles – Ladang Rasan

Phase / Field



Total size

(ha)


scheduled

Currently under

production

(ha)

Currently

unproductive


97A1 81.06 1997 81.06 - - - - 81.06 -

97A1A 80.69 1997 80.69 - - 2019/2020 80.69 80.69 -

97A1B 95.68 1997 95.68 - - 2019/2020 95.68 95.68 -

97A1C 121.85 1997 121.85 - - - - 121.85 -

97A1D 100.74 1997 100.74 - - - - 100.74 -

97A1E 56.87 1997 56.87 - - - - 56.87 -

97A1F 86.34 1997 86.34 - - - - 86.34 -

97A2 94.46 1997 94.46 - - - - 94.46 -

97A2A 61.45 1997 61.45 - - - - 61.45 -

97A2B 77.46 1997 77.46 - - - - 77.46 -

97A2C 63.84 1997 63.84 - - - - 63.84 -

97A2D 80.78 1997 80.78 - - - - 80.78 -

97A3 69.15 1997 69.15 - - - - 69.15 -

97A3A 40.38 1997 40.38 - - - - 40.38 -

97A3B 46.75 1997 46.75 - - - - 46.75 -

97B1 102.01 1997 102.01 - - - - 102.01 -

97B1A 61.14 1997 61.14 - - - - 61.14 -

97B1B 113.18 1997 113.18 - - - - 113.18 -

97B2 126.76 1997 126.76 - - - - 126.76 -

97B2A 92.45 1997 92.45 - - - - 92.45 -

97B2B 50.60 1997 50.60 - - 2018/2019 50.60 50.60 -

97B2C 105.30 1997 105.30 - - 2018/2019 105.30 105.30 -

97B3 100.33 1997 100.33 - - 2020/2021 100.33 100.33 -


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97B3A 103.48 1997 103.48 - - 2020/2021 103.48 103.48 -

97B3B 79.82 1997 79.82 - - - - 79.82 -

98C1 77.40 1998 77.40 - - 2017/2018 77.40 77.40 -

98C1A 67.71 1998 67.71 - - 2017/2018 67.71 67.71 -

98C1B 55.31 1998 55.31 - - 2017/2018 55.31 55.31 -

98C1C 57.55 1998 57.55 - - 2017/2018 57.55 57.55 -

98C2 82.22 1998 82.22 - - - - 82.22 -

98C2A 84.40 1998 84.40 - - - - 84.40 -

98C2B 80.51 1998 80.51 - - - - 80.51 -

98C2C 86.63 1998 86.63 - - - - 86.63 -

98C2D 67.79 1998 67.79 - - - - 67.79 -

98C3 131.70 1998 131.70 - - - - 131.70 -

98C3A 122.37 1998 122.37 - - - - 122.37 -

98C4 115.86 1998 115.86 - - - - 115.86 -

04C 64.88 2004 64.88 - - - - 64.88 -

1998A 79.83 1998 79.83 - - - - 79.83 -

Total 3,266.73 3,266.73 - - - 794.05 3,266.73 -


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Planting Cycles – Ladang Belian

Phase / Field



Total size

(ha)


scheduled

Currently under

production

(ha)

Currently

unproductive


97B1 94.38 1997 94.38 - - 2014 94.38 94.38 -

97B1A 114.84 1997 114.84 - - 2015 81.00 114.84 -

97B1B 93.01 1997 93.01 - - 2015 93.01 93.01 -

97B1C 63.01 1997 63.01 - - 2015 63.01 63.01 -

97B1D 73.59 1997 73.59 - - - - 73.59 -

97C1 261.95 1997 261.95 2013 139.00 2014 123.01 123.01 139.00

97C1A 65.78 1997 65.78 2013 65.78 - - - 65.78

98A1 42.15 1998 42.15 - - - - 42.15 -

98A1A 103.54 1998 103.54 - - - - 103.54 -

98A1B 84.17 1998 84.17 - - - - 84.17 -

98A1C 98.92 1998 98.92 - - - - 98.92 -

98A1D 85.40 1998 85.40 - - - - 85.40 -

98B1 102.99 1998 102.99 - - - - 102.99 -

98B1A 91.24 1998 91.24 - - - - 91.24 -

98B1B 92.11 1998 92.11 - - - - 92.11 -

98B1C 64.23 1998 64.23 - - - - 64.23 -

98C3 82.36 1998 82.36 - - - - 82.36 -

98C3A 72.08 1998 72.08 - - - - 72.08 -

98C4 98.78 1998 98.78 - - - - 98.78 -

98C4A 118.05 1998 118.05 - - - - 118.05 -

98C5 118.02 1998 118.02 - - - - 118.02 -

98C5A 89.44 1998 89.44 - - - - 89.44

01C 46.87 2001 46.87 - - - - 46.87 -


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04C 48.96 2004 48.96 - - - - 48.96 -

2012A 103.67 2012 103.67 - - - - - 103.67

2012B 97.55 2012 97.55 - - - - - 97.55

2013A 98.30 2013 98.30 - - - - - 98.30

2013B 108.42 2013 108.42 - - - - - 108.42

Total 2,613.81 2,613.81 204.78 454.41 2,001.15 612.66


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Planting Cycles – Ladang Kelida

Phase / Field



Total size

(ha)


scheduled

Currently under

production

(ha)

Currently

unproductive


2009 82.66 1998 98.54 2009 82.66 - - 82.66 -

2010 174.55 1998 200 2010 174.55 - - 174.55 -

2011A 84.08 1998 100.39 2011 84.08 - - - 84.08

2011B 100.52 1998 114.70 2011 100.52 - - - 100.52

2012A 75.17 1998 90 2012 75.17 - - - 75.17

2012B 87.51 1998 94.31 2012 87.51 - - - 87.51

2013A 34.97 1998 74.6 2013 34.97 - - - 34.97

2013B 37.59 1998 81.2 2013 37.59 - - - 37.59

98A2 85.13 1998 130.38 - - 2016 85.13 85.13 -

98A2A 93.44 1998 100.45 - - 2015 93.44 93.44 -

98A2B 56.25 1998 81.14 - - 2015 56.25 56.25 -

98A2C 39.54 1998 86.27 - - 2014 39.54 39.54 -

98A2D 67.01 1998 120.81 - - 2014 67.01 67.01 -

98B2 81.32 1998 105.00 - - - - 81.32 -

98B2A 83.31 1998 100.00 - - - - 83.31 -

98C2 88.52 1998 115.38 - - - - 88.52 -

98C2A 93.34 1998 116.50 - - - - 93.34 -

98C2B 79.94 1998 105.67 - - 2018 79.94 79.94 -

98C3 112.19 1998 128.50 - - 2017 112.19 112.19 -

98C3A 86.92 1998 103.64 - - 2017 86.92 86.92 -

98C3B 114.60 1998 122.00 - - 2018 114.60 114.60 -

TOTAL 1758.56 2269.48 735.02 1338.72 419.84


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Planting Cycles – Ladang Lavang SE

Phase / Field



Total size

(ha)


scheduled

Currently under

production

(ha)

Currently

unproductive


98C4 67.56 1998 67.56 - - - - 67.56 -

98C3 66.90 1998 66.90 - - - - 66.90 -

98C2 74.30 1998 74.30 - - - - 74.30 -

98C1 61.00 1998 61.00 - - - - 61.00 -

98C 73.99 1998 73.99 - - - - 73.99 -

99C4 80.41 1999 80.41 - - - - 80.41 -

99C3 104.78 1999 104.78 - - - - 104.78 -

99C2 63.47 1999 63.47 - - - - 63.47 -

99C1 88.62 1999 88.62 - - - - 88.62 -

99C 82.38 1999 82.38 - - - - 82.38 -

01C4 99.27 2001 99.27 - - - - 99.27 -

01C3 80.75 2001 80.75 - - - - 80.75 -

01C2 73.14 2001 73.14 - - - - 73.14 -

01C1 70.84 2001 70.84 - - - - 70.84 -

01C 58.04 2001 58.04 - - - - 58.04 -

Total 1145.45 1145.45 1145.45


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1.5 Other certifications held

1.5.1 ISO

1.5.1.1 Mill

No ISO certifications held.

1.5.1.2 Estates

No ISO certifications held.

1.5.2 Others

1.5.2.1 Mill

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

1.5.2.2 Estates

No other certifications held.


30


1.6 Organizational information / Contact Person

1.6.1 Sime Darby – SOU 31 / Lavang

Clients Company

Sime Darby Plantation Sdn Bhd

Level 3a, Main Block,

Plantation Tower, No 2 Jalan P.J.U.1a/7,

47301 Ara Damansara,

Selangor, Darul Ehsan, Malaysia

Management

Representative

and/or

Contact Person

Mr. Mohd Saiful Bari Bin Munir

Audited Unit /

Location

SOU 31

Management

Representative

Muftahuddin Bin Fakeh

Contact Person Mr. Mohd Saiful Bari Bin Munir

Oil Mill(s) Kilang Sawit Lavang


97008 Bintulu

Sarawak

Malaysia

Supplying

estates

1) Lavang

2) Lavang se (special)

3) Rasan

4) Kelida

5) Belian

Outgrowers – non

Sime

Darby suppliers

See information above

Product

CPO, PK


31


1.6.2 Contact Details of staff relevant for RSPO certification

Contact Details SOU Lavang Mill

Manager

E-Mail

Location

Telefone

Office Mobil

Muftahuddin Bin Fakeh [email protected] Lavang Palm Oil Mill 086-326067 013-7270345

Contact Details SOU Lavang Estates

Entity / Estate

Manager

E-Mail Telefone

Office Mobil

Lavang Estate Fredly anak Jagah [email protected] 086-477302 019 8484719

Rasan Estate Azmi Bin Ismail [email protected] 086-477302 019-5598724

Belian Estate Khoirul Anwar bin

Shafii

[email protected] 086-477302 012 5029324

Kelida Estate Mark Philip Mc Guire [email protected] 086-477302 012 2754732

Lavang Estate

(Special)

Batu Malasamy a/l

Subrahmonion

[email protected] 086-477302 019-5768108


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1.7 Tonnages certified

MILL Annual Output (FY 2012/2013)

Mill Capacity

(mt/hour) Total ha

Sime Darby only (without outgrowers)

CPO

(mt) p.a.

PK

(mt) p.a.

Kilang Sawit Lavang 42,102.56 42,102.56 9,645.78 9,645.78


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2. Assessment Process

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

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

out by a different CB than the Surveillance Assessment.

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

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

Scope Date Audit Team: MPG: Matthias Grill,

CS: Cecep Saepulloh

CHH: Chan Han Hee

Program / Activities

Audit Part I

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


34



CS: Cecep Saepulloh

CHH: Chan Han Hee


RSPO P&C Surveillance Audit

Assessment Mill

Kilang Sawit

Lavang

07.10.2013 MPG, CS, CHH General audit opening at Kilang Sawit Lavang with audit team and representatives of

Komplex Lavang and Sime Darby; chosing random sample and splitting of audit team

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

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

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

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

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

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

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

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

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

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

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

MPG CB internal summary, discussion on findings

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

Assessment Estate

Belian

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

CHH, CS …for more information see next page


35



CS: Cecep Saepulloh

CHH: Chan Han Hee



Assessment Estate

Belian

07.10.2013 CHH, CS Specific audit opening at Ladang Belian with representatives of the estate and

representatives of Sime Darby

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

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

health & safety relevant documents concerning RSPO P&C implementation

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

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

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

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

facilities were visited and presented by auditees

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

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

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

occupational health & safety relevant documents and finalization of checklist

CHH, CS Preparation for audit closing and summary

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


36



CS: Cecep Saepulloh

CHH: Chan Han Hee



Assessment Estate

Kelida

08.10.2013 MPG, CS, CHH Specific audit opening at Ladang Kelida with representatives of Ladang Lavang and

representatives of Sime Darby;

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

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

health & safety relevant documents concerning RSPO P&C implementation

MPG, CS, CHH Site visit of Ladang Kelida’s operation; assessments of boundaries, waterways, puffer zones,

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

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

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

facilities were visited and presented by auditees

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

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

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

occupational health & safety relevant documents and finalization of checklist

MPG, CS, CHH Preparation for Audit closing and summary

MPG, CS, CHH Summary of Ladang Kelida Assessment and audit closing with auditees representatives

Komplex Lavang MPG, CS, CHH Summary of Komplex Kelida Assessment and audit closing with all auditees representatives


37


2.2 Date of next Surveillance Audit

2.2.1 Mill / unit and Supplying Estates

Date of next surveillance Audit will be approximately October 2014.


38


2.3 Lead Assessor / Assessment Team

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

Function Person Field of activity

and special

expertise

Qualification and experience

Lead Auditor Dr. Matthias Grill Lead Auditor,

Quality

Management

System, GAP, IPM,

pesticide and

fertilizer use; Fluent

in English language

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

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

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

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

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

veterinary Quality Assurance and founded the agroVet Certification Body (Managing

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

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

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

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

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

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

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

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

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

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

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

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

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

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

became Business Development Manager of agroVet, especially responsible for

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


39


Function Person Field of activity

and special

expertise

Qualification and experience

Co - Auditor Mr. Cecep

Saepulloh

Environmental ,

health and safety,

HCV- and social

Expert Fluent in

English and Bahasa

language

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

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

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

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

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

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

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

Co - Auditor Mr. Chan Han Hee

Plantation and

Malaysian

agriculture Expert;

Environmental and

Social Expert;

Fluent in English

and Bahasa

language

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

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

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

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

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

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

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

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

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

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

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

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


40


2.4 Certification Body

Certification Body (CB) Head Quarter:

agroVet GmbH

Königsbrunnerstraße 8

A-2202 Enzersfeld

Austria

www.agrovet.at

Contact person of

Certification Body

Dr. Matthias Grill

agroVet Certification

RSPO Scheme

Manager

Mag. Klaus Guger

2.5 Outlinie of how stakeholder consultation was managed

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

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

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

http://www.agrovet.at/


41


3. Assessment Findings

3.1 Summary of findings

Principle 1: Commitment to transparency

Criterion No Indicator Yes No n.a. Remarks

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

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

x

M: Stakeholder Meeting conducted 4th Sept. 2013 (only for the mill); community representatives invited however not present, rest of participants mainly contracted parties and partners and public authorities

x E1: Main Stakeholder Meeting done specifically for Belian on 18.07.2013 including relevant stakeholders; besides that monthly stakeholder meetings with relevant stakeholders, namely contractors and suppliers, local school PTA etc.); documented with specific minutes of meetings. No evidence of conflicts

x E2: Meeting explicitly done for Estate Kelida on 21.08.2013; contractors, suppliers, school representatives, staff and management involved


42


Criterion No Indicator Yes No n.a Remarks

Criterion 1.2: Management documents are publicly available, except where this is prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes.

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

1.2.1 Land titles/user rights (2.2) x

M: MPOB license 500340004000, exp. 31.08.2014

x

E1: 60 year lease of state land under one title issued by Superintendent of Lands and Surveys Bintulu Division Sarawak from 1995 to 2055. This is inclusive of Lavang, Lavang Special, Lavang Oil Mill, and Belian. Area for Belian Estate is 2885.84 ha

x E2: from 1995 to 2055 – given to Rasan Estate (including the land of Kelida), signed in 2001 by local authorities

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

x

E1: OSH Program for FY 2012/13 was shown

x E2: as detailed explained below in criterion 4.7


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

x

M: Annual review of SIA (01.08.2013) and EIA (05.08.2013)

x

E1: Biodiversity Assessment done in 2009 for SOU 31 includes for Belian Estate. Management plan also updated and documented

x E2: as detailed explained below also in related criteria below

1.2.4 Pollution prevention plans (5.6) x

M: PP Plan: 01.08.2013 for FY 2013/2104

x

E1: Stated in Environmental Improvement Plan & Pollution Prevention Plan for Belian Estate

x E2: PPP (Pollutin Prevention Plan) implemented – see details below


44





1.2.5 Detail of complaints & grievances (6.3) x

M: same procedures as in last audit – check of housing repair book plus internal and external complaint book (again no significant complaints)

x

E1: No complaints so far received from outsiders. Internal complaints from workers e.g. requesting repairs to house amenities are promptly attended to by estate

x E2: Complaint Procedure implemented as in QMS and SOP’s

1.2.6 Negotiation procedures (6.4) x

M: Part QMS / SPMS-Appendix 5 (handling social issues, etc.) – no changes

x E1: Stated in Standard Operating Procedures Manual - Subsection 5.5. ; part of Management Responsibilities

x E2: In place and part of above mentioned issue

1.2.7 Continuous improvement plan (8.1) x M: in place for entire scope, see also 8.1

x

E1: In place according to specific fields (e.g. environment, social, good practices, etc.) in line with company policies

x

E2: as in respective criteria detailed explained as below and part of Sime Darby’s ARM (Agricultural Reference Manual)


45


Principle 2: Compliance with applicable laws and regulations


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

2.1.1

Evidence of compliance with legal requirements. MAJOR compliance

x

M: LORR (Legal and other Requirements Register) for 2013/2014) from 15.08.2013

x E1: Legal and other Requirements Register (LORR) in place and reviewed annually (last done on 30/07/2013)

x E2: LORR implemented and annually reviewed (last by Mrs. Pitalin Ak Jarit – July 2013)

2.1.2

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

x

M: prepared by Suresh Ponnusamy / 15.08.2013

x E1:Mr. Abdul Reza, Assistant Manager, is assigned the role

x E2: as above – reviewed by Mrs. Pitalin

2.1.3

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

x

M: Information fully accessible ( MPOB plus others)

x E1: MPOB licenses for collection and sale of FFB, MDT license for diesel storage etc. are displayed

x E2: relevant documents and licenses fully displayed – visually assessed


46



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

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

x

M: as above, visually assessed and explained

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

x

E2: by SOP regarding tracking the changes as well as per HQ of Sime Darby and respective communication to all SOU’s

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

2.2.1

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

x M: As per displayed documents and MPOB license and previous documents proven

x

E1: Land title issued by Lands and Surveys Bintulu Division Sarawak. This is inclusive of Lavang, Lavang Special, Lavang Oil Mill, and Belian. Formerly logged over forest

x

E2: Land title as described above – Golden Hope started in 1996 with their operation at Lavang Zone

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

x M: n.a.

x E1: No state land or reserves are adjacent- surrounded by other estates or smallholders

x E2: contracts in copy available at Kelida – original owner was Golden Hope, documents also prove change of owner and name


47



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

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

x M: n.a.

x E1: No state land or reserves are adjacent- surrounded by other estates or smallholders, boundaries visualized

x E2: evidence by visual assessment on boarders for boundary markers to Rasan Estate, no disputes evident

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

x M: n.a.

x E1: No dispute has been made so far

x E2: no disputes evident

Criterion 2.3: Use of the land for oil palm does not diminish the legal rights, or customary rights, of other users, without their free, prior and informed consent.

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

x M: n.a.

x

Estate does not involve native customary rights (NCR) land

x E2: no disputes evident

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

x M: n.a.

x E1: As above in 2.3.1, therefore no claims

x E2: no disputes or claims evident

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

x M: n.a.

x

E1: Same as previous indicators above

x

E2: no disputes evident


48


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


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

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

x M: calculated till FY 2017/2018

x

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

x E2: Projection of budget goes up to 2018

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

x M: n.a.

x

E1: Annual replanting program from FY 2011/2012 to 2017/2018 was shown

x E2: Shown and complete for next years – including CSA (Conservation Sat Aside Prorgame)


49


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


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

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

x

M: SOP’s part of QMS / no changes nor revision since last year ((HQ, V1 2008)

x

E1: SOM (Standard Operating Manual) and specific SOP (Standard Operating Procedures) available; besides that also Agricultural Reference Manual and EQMS (Estate QMS)

x E2: SOP same as above: part of Sime Darby QMS / V1 2008 and other related documents such as mentioned above

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

x M: regular internal assessments done and recorded – documents kept for minimum 5 years - as in company policy

x

E1: e.g. visits made by Planting Advisors (6 months once) and Agronomists (once a year); reports complete and available

x E2: assessments and record traceable, company policy to keep them 5 years


50



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

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

x M: n.a.

x

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

x E2: 19th 2013, evaluation by internal SD (Sime Darby) experts

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

x M: n.a.

x E1: Examples of foliar and soil sampling were shown

x E2: Soil sampling – available (status 25th September 2008); leave sampling done annually

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

x M: n.a.

x

E1: No application of POME due to peat nature of land; EFB only applied to immature area (400 ha); zero burning is adhered to in replanting area as per company policy

x E2: visual assessment does prove that EFB is applied as well as zero burning policy is implemented


51



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

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

x M: n.a.

x

E1: Frond stacking, LC and vertiver grass planting, terracing, road side pit are practiced

x E2: Evaluation of GPS data regarding GPS data and also steep slopes (2012’ R&D of Sime Darby’s HQ) result led to allocate another 54.21ha to CSA in 2012 (“Conservation Set Aside” Area) = too steep to plant; in total now 292.76 ha allocated to Biodiversity and Jungle land (including slopes) also written down in “Sime Darby Agricultural Reference Manual / 4.8 – construction of terraces no plantings beyond 25 degrees

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

x M: n.a.

x

E1: No exposed soil within estate

x E2: visually assessment of randomly chosen (98/B2, 2010/A and several fields along roadside)


52



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

4.3.3 Presence of road maintenance programme MINOR compliance

x M: n.a.

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

x E2: available, also part of PA Report, targeted till 2014

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

x M: n.a.

x

E1: Water table is measured every month. Managed by drainage network and by blocking, visual assessment Recommendation: see 5.6.3

x E2: no peat soil

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

x M: n.a.

x

E1: No other fragile and problem soils in Belian Estate

x E2: No evidence of fragile soil – soil map does prove


53



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

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

x M: n.a.

x

E1: Estate has 2 small rivers: Sungai Sebekal and Sungai Pugang; another river, Sungei Lavang runs along one border - riparian zone of up to 30 meters. Sime Darby river protection policy (5m minimum) assessed and kept

x E2: well implemented buffer zones as far as visual assessment of riparian zones along Sungai Kelida show; also well defined in Estate Maps and Graphs (166,33 ha)

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

x M: n.a.

x E1: No bunding or dams built across both rivers

x E2: no evidence

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

x

M: no POME drained into rivers or waterways; composting project implemented where POME is used

x E1: Water quality is monitored every quarter; records for first half of 2013 shown

E2: monitoring in place, no negative impacts detected so far for Sungai Kelida


54



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

4.4.4 Monitoring rainfall data for proper water management. MINOR compliance

x M: n.a. (although data from estates would be available)

x

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

x E2: well implemented rainfall records on monthly base

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

x M: recorded and calculated till Sept. 2013, trended via visualized curve

x E1: n.a.

x E2: n.a.

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

x M: no evidence, visual assessment

E1: Water from drains goes into the three rivers, no protected area involved

x E2: water is drained only into existing little greeks- and riversystem but not into protected areas

4.4.7 Evidence of water management plans. MINOR compliance

x

M: annually revised / 01.08.2013 for 2013/2014

x

E1: Water reduction plan and water contingency plan for FY 2013/14 were shown

x E2: implemented and revised 01.07.2013 /

Mrs. Pitalin and Mr. Mac. Guire


55



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

4.5.1 Documented IPM system. MINOR compliance

x M: n.a.

x E1: To be found in Sime Darby’s SOP‘s

x E2: As in SOP Sect 15 of Agricultural Reference Manual

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

x M: n.a.

x

E1: Documented in SOP’s and Section 15 / Plant Protection in ARM (Agricultural Reference Manual)

x E2: Oryctes, Rat and Bagworm Census available

4.5.3 Recording areas where pesticides have been used. MINOR compliance

x M: n.a.

x E1: Recorded in “Spraying Costs Book”

x E2: Recorded in “Spraying Costs Book”

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

x M: n.a.

x

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

x E2: Available in document “Monitoring pesticide usage ha and per mt FFB production”


56



Criterion 4.6: Agrochemicals are used in a way that does not endanger health or environment. There is no prophylactic use of pesticides, except in specific situations identified in national Best Practice guidelines. Where agrochemicals are used that are categorized as World Health Organisation Type 1A or 1B, or are listed by the Stockholm or Rotterdam Conventions, growers are actively seeking to identify alternatives, and this is dcoumented.

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

x M: n.a.

x

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

x E2: Also in Sect. 15 of ARM…

4.6.2 Pesticides selected for use are those officially registered under the Pesticides Act 1974 (Act

149) and the relevant provision (Section 53A); and in accordance with USECHH regulations (2000). MAJOR compliance

x M: n.a.

x

E1: All pesticides purchases are centralized at HQ in Kuala Lumpur, hence tightly screened before purchase

x E2: all documented, recorded and purchased ones evident are registered / centralized approval by Sime Darby HQ

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

x M: n.a.

x

E1: PPP store is suitable, well lit and ventilated with appropriate warning signage; spillage kit is available and emergency shower and eye wash are nearby; used containers are pierced and disposed through licensed collector

x E2: PPP storage visually assessed and found complying Observation 1: Currently the water supply for the PPP and mixing place is not secured as under re-construction


57




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

x M: n.a.

x

E1: Workers are briefed and reminded at each time spraying is done; training is also carried by trained staff; foreign workers are Indonesians, hence can understand Malay, the local language confirms compliance

x E2: as per SOP, displayed information and per interview of responsible staff

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

x M: n.a.

x

E1: For pesticide applicators, medical checkup done monthly with medical surveillance one a year (with blood test), records available

x E2: annually done for application workers and staff handling PPP – records fully available

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

x M: n.a.

x E1: Confirmed pregnant and breast feeding women are not allowed to work with pesticides. Women workers are constantly reminded to inform their supervisor if they are pregnant

x E2: no evidence, mentioned in SOP’s and trainings


58




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

x M: n.a.

x

E1: Paraquat is not allowed anymore to be used in Sime Darby Estates as Company Policy

x E2: Paraquat use is banned in Sime Darby operations – no evidence found at the audit for any use / also generally mentioned in Sect. 16 of Sime Darby ARM

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

x M: n.a.

x E1: No aerial spraying is done

x E2: No aerial spraying

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

x M: n.a. – no testing required yet

x E1: n.a.

x E2: n.a.

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

x M: n.a.

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

x E2: example August 20th : Field 98/A2D, 4 workers, Glyphosate used, 12 ha applied, 0,6 l/ ha; records kept 5 years minimum


59



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

4.7.1

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

x

M: OSH implementation according current policy and plan a) OSH policy / generated HQ b) Hazard Identification, Risk Assessment and Risk Control (HIRAC) – 20.03. 2013 c) training records fully available d) fully available e) Mr. Mohd. Al Bukhari f) meeting records avaible g) clearly displayed g) signs clearly displayed, visual assessment h) First Aid training recorded i) visual assessment

x E1: a. Policy is in place. Displayed in master ground for public viewing b. Hazard Identification, Risk assessment and Risk control document is available c. Training programe for all levels of staff and workers for FY 2012/13 is available d. Staff (manager and assistant manager) showed competency on knowledge about pesticides. Use of PPE is compulsory for all involved PPE are provided to all employees. Confirmed through field inspection and interview with workers e. Manager approves all purchases of PPE with request coming in from supervisor through Assistant manager f. Meetings are held every 3 months between management and workers.


60



Minutes of 23 August 2013 meeting was shown. g. Safety briefings are given to all visitors. Emergency Response Plan is displayed in master ground, canteen, guard house together with names of contact person and contact numbers h.Four persons have been trained in first aid i. First aid kits are located in 7 locations

x E2: a) OSH policy / generated HQ b) Hazard Identification, Risk Assessment and Risk Control (HIRAC) – carried out from 10.06. to 17.09. 2013, carried out by Mrs. Pitalin c) training records fully available d) fully available – visually assessed in field e) Mr. Mark Philip Mc. Guire f) meeting records avaible g) signs clearly displayed, visual assessment h) First Aid training recorded for 2012, for 2013 still open to be conducted as scheduled in training plan i) visual assessment


61




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

x M: LTA rate – no accidents in 2013/2014

x

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

x E2: Monthly updated and recorded, e.g. 0 days in September, 2 days in August

4.7.3 Workers should be covered by accident insurance. MAJOR compliance

x

M: SOCSO (requires assurance system) also for foreign workers FWCF; number of local employees: 23 (excl. Management), foreign workers: 58 / October 2012

x

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

x

E2: SOCSO fully implemented as in other operations


62



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

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

x

M: as in training files recorded and also in specific training tables

x

E1: Training program and records are available for all levels of staff and workers

x

E2: Training plan assessed and compared with training records – no significant deviations


63


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


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

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

x

M: review within EI evaluation: done 05.08.2013

x

E1: Documented environmental aspect and impact risk assessment is available, this documents are reviewed and updated yearly basis. The last review was conducted for financial year 2013/2014 The list of document checked :

- Environnmental aspect and impact identification form FY 2013/2014

- Environmental impact evaluation form FY 2013/2014

x

E2: Risk assessment of environmental aspects and impacts for Kelida Estate has been done and documented; this document is updated and reviewed periodically (annually) - the new update document is FY 2013/2014 and signed by the Estate Manager


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

5.1.2

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

x

M: Pollution Prevention Plan / PPP: implemented as last year and reviewed 01.08.2013, Mr. Fahiroz Hamid Positive aspect is composting of EFB

x

E1: Environmental Improvement Plan / Pollution Prevention Plan for FY 2013/2014 was established; there are 3 environmental issues defined : (1) leakage of pesticides during chemical mixing and washing into outside land (2) contamination of water source (3) workshop (4) high useage of chemical either pesticides or herbicudes and (5) road erosion

x

E2: Environmental Improvement Plan and Pollution Prevention Plan for Kelida Estate also determined; FY 2013/2014 is focused on land and water contamination by construction of oil trap and washing bay, Construct bund at diesel tank at store and upgrade bund at chemical store (110%) - they were completed in May 2013


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Criterion 5.2: The status of rare, threatened or endangered species (ERTs) and high conservation value habitats, if any ,that exists in the plantation or that could be affected by plantation or mill management, shall be identified and their conservation taken into account in management plans and operations .

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

x M: no evidence at mill

x E1: Biodiversity baseline assessment report for SOU 31 including Belian Estate is available; tThe baseline assessment was done in June 2009. There are 20 ha as buffer zone (HCV 4) and steep area (> 25% slope) in Plahlawan division 87,36 ha & Perwira & Panglima Div. 50,33 ha (HCV 4). In the steep area, company policy is not to make any activities there, including harvesting

x E2: Biodiversity baseline assessment report for SOU 31 including Kelida Estate is availble; the baseline assessment was done in June 2009 - there are 50 ha as river buffer zone of Kelida river (HCV 4) and 24 ha steep area (HCV 4) and also 0,5 ha worship area (mosque) indicated


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Criterion 5.2: The status of rare, threatened or endangered species (ERTs) and high conservation value habitats, if any ,that exists in the plantation or that could be affected by plantation or mill management, shall be identified and their conservation taken into account in management plans and operations .

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

x M: as above

x E1: Management plan on biodiversity baseline assessment 2013 has been established

x E2: Management plan on biodeiversity baseline assessment 2013 has been established; several actions have been implemented at field such as installed signages “No fishing”, No hunting” or „buffer zone“ at the the identified HCV area

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

x

M: n.a.

x

E1: Based on bidodiversity assessment, there is no ERT species were identified in lavang estate; warning boards are put place around estate area- to do not hunting, fishing or collecting activities

x E2: Based on biodiversity baseline assessment - no indication ERT species in baseline assessment nor found during external RSPO assessment


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

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

x

M: PPP Pollution Prevention Plan for NY 2013/2014

x

E1: The waste products have been identified and documented in waste management action plan FY 2013/2014 ; sources of pollution have been identified and documented in Environnmental Aspect and Impact Identification form for FY 2013/2014

x E2: All waste product and sources of pollution have been identified and implemented in Waste Management Action Plan for FY 2013/2014 and also in environmental aspect and impact identifications


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

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

x

M: Waste Management Plan available and implemented

x

E1: The waste management action plan FY

2013/2014 is available including action

plan to handle any type of waste such as:

schedule waste, domestic waste, rubbish,

(landfill/collection SOP), clinical waste and

industrial waste are disposed to registered

purchaser

x E2: Shedule waste is collected in

appropiate store and send to authorized

collectoR; domestic waste and other

waste is collected and disposed as refered

to landfill and collection SOP

5.3.3 Evidence that crop residues/biomass are recycled MINOR compliance

x

M: According respective state policy, EFB are composted

x

E1: Using EFB for organic fertilization, branches are staking around the area of oil palm trees for organic fertilizer (recycling)

x

E2: Using EFB for mulching and composting


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

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

x

M: Fiber and shells only; Diesel is used to start engines and operation rest is used up exclusively

x

E1: Not applicable for Estates

x E2: Not applicable for Estates

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

x

M: again already under calculation for FY 2013/2014: currently it is 11,99l/mt

x


x



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Criterion 5.5: Use of fire for waste disposal and for preparing land for replanting is avoided except in specific situations, as identified in the ASEAN Guidance or other regional best practice.

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

x M: n.a.

x

E1: No evidence for open burning during audit; replanting activities as in ARM and SOM

x E2: Sime Darby generated and implemented a „Zero Burning Policy“ - field checks at replanting areas show that there is no evidence of open burning

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

x M: n.a.

x

E1: According to field checking, replanting activity were felled/mowed down, chipped/shredded, windrowed and mulched

x

E2: According to Sime Darby ARM (Agricultural Reference Manual) Section 4 about land preparation, previous crop are felled/mowed down and shredded and mulched; the evidence given during field check at land preparation area

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

x M: no evidence

x E1: No evidence of open burning during field check

x E2: No evidence within field checks for

land preparation for burning of any waste


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

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

x M: as in PPP – see above

x E1: Pollution prevention plan year 2013/2014 has been established

x E2: Pollution Prevention Plan (PPP) is available for Kelida estate; FY 2013/2014 focused on land and water contamination

5.6.2 Plans are reviewed annually. MINOR compliance

x

M: PPP is annually reviewed

x E1: Every year th document is updated and approved by estate manager

x

E2: Pollution Prevention Plan is updated every financial year hence reviewed annually

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

x M: n.a.

x E1: Water table management is implemented and well recorded; however there is a recommendation by the auditor also to define the kind of peat in the specific area and measure the peat depth (e.g. with subsidence poles) in order to avoid assumptions, having actual measurements and record the actual (also partly natural) subsidence rate

x E2: Not applicable for Kelida Estate since no peat land evident


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


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

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

x

M: SIA implemented and reviewed (as above)

x

E1: Baseline Social impact assessment (SIA) for SOU 31 including Belian Estate has been done in July 2009 and documented; the stakeholder meeting (recommended in first ASA) was conducted in 31 July 2013

x

E2: Social Impact Assessment has been done for Kelida Estate together with other Estate SOU 31 (Lavang), carried out on 17th June 2009 within Stakeholder Consultation in 31th July 2009; also separate stakeholder meeting in 2013 (as in first ASA pointed out)

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

x M: SIA (2009 for Lavang Zone) and annual Management Plan on Social Impacts

x E1: The attendance sheet is available for stakeholder meeting- 114 person attended this meeting

x E2: Based on the SIA document, some stakeholder participated in meeting (as in records), also some interviewed during assessment such as local community / villagers, workers, farmers, estate management, supplier/contractors


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

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

x M: as above mentioned in plan (also including parts of HIRAC)

x

E1: Management plan on social impact assessment provides mitigation measures with the person in charge and completion date - it is updated every year

x

E2: Action Plan of social assessment for Kelida estate is available, it covers issues and strategies to mitigate the impact and also shows responsible person and time frame of implementation; action plan is updated and reviewed annually

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

6.2.1 Documented consultation and communication procedures. MAJOR compliance

x

M: Monthly stakeholder meetings and a separate general one done on 4th September 2013 (mill only)

x

E1: Procedures are stated in the SPMS (Sustainable Plantation Management System) Appendix 5 - Flow Chart and procedure on handling social issues

x E2: Procedures for external communication are stated in SOM (Standard Operation Manual) Appendix 5.5.3.2, Version 1 and the SPMS (Sustainable Plantation Management System) Appendix 5 - Flow Chart and procedures on handling social issues such as e.g. Appendix 3 for handling land disputes


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

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

x M: Mr. Mohd. Bukhari

x E1: Mr. Erwan Musyit Bin Harith (Senior Assisstant) was appointed to be responsible

x E2: Mr. Mohd Ridzuan bin Abdul Rani was appointed to be responsible

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

x

M: fully available and presented

x

E1: List of stakeholders is available (contractors, vendors, local community,interested parties)

- Record of meeting with stakeholders

- Complaint book (internal & external) and response are recorded

x E2: List of stakeholders for Kelida Estate was presented; this list includes contractors/supplier, local community and intereseted parties - 31 names or parties identified


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

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

x

M: internal and external complaint book available no relevant complaints in last months / year

x

E1: Procedure for dispute is available. internal and external complaint book availble - no dispute so far

x E2: So far no open disputes in Kelida Estate

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

x M: as per demonstration

x E1: Land dispute procedure is provided (SPMS - Appendix 3 & 5)

x E2: Procedures and/or System for land dispute is covered in SPMS (Sustainable Plantation Management System) Appendix 5 - Flow Chart and procedures on handling social issues and Appendix 3 for handling land disputes – however no disputes evident

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

x M: internal- and external complaint procedures available – including external and internal issues

x E1: The system is open for any affected parties, so far no land disputes and no complaint

x E2: The system is open for any affected parties and open for negotiation, so far no land disputes and no complaint


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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 stakeholders to express their views through their own representative institutions.

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

x

M: n.a.

x

E1: Procedure in Plantation Sustainable Management System Appendix 3 & 5, Si far there has been no dispute, no NCR land in Belian estate

x

E2: It is covered in Procedures and System for land dispute in SPMS (Sustainable Plantation Management System) Appendix 5 - Flow Chart and Procedure on handling social issues and appendix 3 for handling land disputes - no NCR land in Kelida estate

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

x

M: n.a.

x

E1: Procedure in Plantation Sustainable Management System Appendix 3 & 5 in place and implemented - so far no evidence of any kind of relevant disputes

E2: Is covered in Procedure and System for land dispute is covered in SPMS, Appendix 5 - Flow Chart and Procedure on handling social issues and Appendix 3 for handling land disputes- no NCR in Kelida estate and no evidence of any kind of disputes


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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 stakeholders to express their views through their own representative institutions.

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

x

M: n.a.

x

E1: So far no claims or land disputes with community

x E2: So far neither claims nor disputes with local community

Criterion 6.5: Pay and conditions for employees and for employees of contractors always meet at least legal or industry minimum standards and are sufficient to provide decent living wages.

6.5.1 Documentation of pay and other conditions. MAJOR compliance

x

M: Improvement in beginning of January significantly improved (foreign and local workers ( 36% higher)

x

E1: The workers have individual contracts, signed by them and the Estate Manager; The payslip checking shown, Mrs. Malina as fertilizer worker, states the received amount of MYR 1.025,78 (above the standard of MYR 900)

x E2: The worker have individual contracts, signed by both parties (workers and company), payslips were shown: e.g. Mr. Budi Ibrahim as harvester worker received MYR 2.065,78 (above the standard MYR 900)


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Criterion 6.5: Pay and conditions for employees and for employees of contractors always meet at least legal or industry minimum standards and are sufficient to provide decent living wages.

6.5.2 Labor laws, union agreements or direct contracts of employment detailing payments and conditions of employment (e.g. working

hours, deductions, overtime, sickness, holiday entitlement, maternity leave, reasons for dismissal,

period of notice, etc) are available in the language under-stood by the workers or explained cadrefully to them by a plantation management official in the operating unit. MINOR compliance

x

M: same agreements as before between Sime Darby and workers, however no union in Sabah and Sarawak

x

E1: The contract/agreement detailing payment and condition of employment such as working hours etc. does prove compliance

x

E2: The contract of workers are available with the detailing payent and condition of employement such as basic salary, period of work, allowance, holiday, etc

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

x M: visually assessed and inspected – fully complying as new housing facilities are in use already

x

E1: Family housing standard : 3 rooms, toilett , kitchen room 1, water supply (free), electricity (free), medical (free), education (free), sport facility, etc.

x

E2: Good housing standard of family

houses with 3 rooms, toilett , kitchen

room 1, water supply (free) , electricity

(free), medical (free), education (free),

sport facility, etc.


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Criterion 6.6: The employer respects the right of all personnel to form and join trade unions of their choice and to bargain collectively. Where right to freedom of association and collective bargaining are restricted under law, the employer facilitates parallel means of independent and free association and bargaining for all such personnel.

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

x

M: Although no Union organized in Sarawak, minutes of meetings with responsible staff available

x

E1: No Union in Sarawak but there is a meeting between management and workers every 3 months; minutes are documented (matter included in OHS meeting), the last done in 23rd August 2013, attended by 20 participants

x

E2: No Union in Sarawak existent but there are meetings between management and workers every 3 months; minutes are documented (as part of OHS meeting); last one was held in 09th July 2013, attended by 22 participants

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

x

M: document presented, displayed in front of office; however no unions in Sarawak yet

x

E1: Freedom of association statement is displayed in musterground and office

x E2: Statement for freedom of association is displayed in musterground and office


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Criterion 6.7: Children are not employed or exploited. Work by children is acceptable on family farms under adult supervision, and when not interfering with education programmes. Children are not exposed to hazardous working condition.

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

x

M: Minimum age is 18 at Sime Darby operations, no evidence of violation

x

E1: The youngest empoloyee according to list of employee master is 18 years old (born in 29.04.1995); Malaysian law does not permit workers under 16 to be employed, Sime Darby Policy shows minimum age of 18

x

E2: The youngest aged worker evident in Kelida Estate is 19 years (minumum age policy at Sime Darby is 18 years)


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Criterion 6.8: Any form of discrimination based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation, or age, is prohibited.

6.8.1 A publicly available equal opportunities policy. MAJOR compliance

x M: policy available, displayed and implemented

x E1: Equal Opportunity Policy is dsiplayed in office and musterground

x E2: An Policy on Equal Opportunity is generated and displayed in office plus musterground

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

x M: no evidence for any kind of discrimination

x E1: According to interviews there is no evidence of discrimination of employees

x E2: Several interviews with workers (some of them Indonesian) show that there is no evidence found for discrimination off foreigners


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

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

x M: Gender Policy and Policy on sexual harassment available, displayed and implemented

x E1: A Policy on sexual harassment and violence is available & implemented

x E2: The Policy on sexual harassment and violence is displayed in the public area in the office and musterground; at the audit no case or evidence for sexual harrassment found

6.9.2 A specific grievance mechanism is established. MAJOR compliance

x M: Gender Committee installed and active, still headed by Mill Manager Mr. Muftahuddin

x E1: Grievance Mechanism implemented as in EQMS documents, e.g. Gender Committee with regular meetings

x E2: Mechanism for grievance are handled by Gender Commitee that is headed by Mrs. Pitalin AK Jarit


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

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

x M: n.a.

x E1: n.a.

x E2: n.a.

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

x M: sold under Sime Darby exclusively -currently FFB is: MYR 478,95 per mt

x E1: n.a.

x E2: n.a.

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

x M: n.a. – within Sime Darby’s operations agreed

x E1: n.a.

x E2: n.a.

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

x M: same as above

x E1: as above

x E2: as above


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

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

x M: to own workers: rice and cooking oil supplied to workers, school (Komplex Lavang), mosques, footballground, clinic, multipurpose hall, volleyball, RM 5 top up for telephone (pre paid); as there are no communities neighboring the contribution does concentrate on own workers and staff

x E1: Example: several internal activities and also external: e.g. support given to local school programme

x E2: Parts of the CRS program are e.g.:

- Blood donation - Religion day celebration - Bus school for workers children - Humana school (for foreigner

workers) - Rice and cooking oil allowance - Etc.


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Principle 7: Responsible Development of New Plantings


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

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

x M: n.a.

x E1: n.a.

x E2: n.a.

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

x M: n.a.

x E1: n.a.

x E2: n.a.

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

x M: n.a.

x E1: n.a.

x E2: n.a.


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Criterion 7.2: Soil surveys and topographic information are used for site planning in the establishment of new plantings, and the results are incorporated into plans and operations.

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

x M: n.a.

x E1: n.a.

x E2: n.a.

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

x M: n.a.

x E1: n.a.

x M: n.a.


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Criterion 7.3: New plantings since November 2005, have not replaced primary forest or any area required to maintain or enhance one or more High Conservation Values.

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

x M: n.a.

x E1: n.a.

x E2: n.a.

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

x M: n.a.

x E1: n.a.

x E2: n.a.

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

x M: n.a.

x E1: n.a.

x E2: n.a.

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

x M: n.a.

x E1: n.a.

x E2: n.a.


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

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

x M: n.a.

x E1: n.a.

x E2: n.a.

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

x M: n.a.

x E1: n.a.

x E2: n.a.

Criterion 7.5: No new plantings are established on local peoples’ land without their free, prior and informed consent, dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions.

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

x M: n.a.

x E1: n.a.

x E2: n.a.


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

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

x M: n.a.

x E1: n.a.

x E2: n.a.

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

x M: n.a.

x E1: n.a.

x E2: n.a.

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

x M: n.a.

x E1: n.a.

x E2: n.a.

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

x M: n.a.

x E1: n.a.

x E2: n.a.

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

x M: n.a.

x E1: n.a.

x E2: n.a.

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

x M: n.a.

x E1: n.a.

x E2: n.a.


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

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

x M: n.a.

x E1: n.a.

x E2: n.a.

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

x M: n.a.

x E1: n.a.

x E2: n.a.


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


Criterion 8.1: Growers and millers regularly monitor and review their activities and develop and implement action plans that allow demonstrable continuous improvement in key operations.

8.1.1

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

x M: n.a.

x E1: IPM Measures implemented such as e.g. use beneficial plants, barn owl, Sime Darby’s Policy on the ban of using Paraquat, etc.

x E2: Sime Darby Policy on the ban of Paraquat and compensation by enforced IPM and other measures

8.1.2 Environmental impacts (C 5.1). MAJOR compliance

x M: as mentioned before

x E1: Summarized it may be stated that they are implemented in compliance with RSPO – as in Indicators detailed above

x E2: Environmental Aspect and Impact Identification System in general is updated and reviewed every year, details as above

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

x M: as also mentioned above

x E1: Plans available and evident at inspections, examples are EFB and composting, cells for moisturizing nursery, mulching, etc.

x E2: Reducing waste by re-use and recycling program are part of several plans and found also widely implemented


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Criterion 8.1: Growers and millers regularly monitor and review their activities and develop and implement action plans that allow demonstrable continuous improvement in key operations.

8.1.4 Pollution prevention plans (C 5.3) MAJOR compliance

x M: available and implemented – see relevant indicators before

x E1: Prevention of Pollution is based on Plans (updated once a year), implementation assessed and found complying

x E2: Pollution Prevention Plans generated and updated every year

8.1.5 Social impacts 9C 6.1). MAJOR compliance

M: available and implemented – as above mentioned

x E1: As already pointed out in adhering criteria and indicators, full compliance found

x E2: Social Impact Assessment is available, the social program is updated and reviewed every year

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

x M: Housing project for improvement of housing situation still in progress (4 new done last year), small fitness program implemented: bicycles bought for workers, filtration of POME and several other minor activities

x E1: Several programs do prove contribution to social and environmental aspects are implemented, details see in relevant indicators above

x E2: By annual reviews of environmental- and soial plans every year and also by internal audit mechanism


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3.2 Identified Non-Conformances and Noteworthy positive comments

NC/O

Nr.

Criterion

Non Conformance [NC]

Observation [O], Comment [C]

Corrective Action Implementation

required until

1

(O)

4.3.4

5.6.3

Subsidence of peat soils

should be minimized

through an effective and

documented water

management

programme.

Observation:

E1: Water table management is

implemented and well recorded;

however there is a

Recommendation:

It is a recommendation by the

environmental auditor to also define

the kind of peat in the specific area

and measure the peat depth (e.g.

with subsidence poles) in order to

avoid assumptions, having actual

measurements and record the

actual (also partly natural)

subsidence rate

Recommendation

only

2

(O)

4.6.3

Pesticides shall be stored

in accordance to the

Occupational Safety and

Health Act 1994 ( Act 514)

and Regulations and

Orders and Pesticides Act

1974 (Act 149) and

Regulations.

Observation:

E2: PPP storage visually assessed

and found generally complying,

however at the time of the audit

the water supply for the PPP and

mixing place is not secured as

under re-construction

Recommendation:

Guarantee in future water supply

(e.g. with small containers) at all

high risk spots also while repairing

activities are in progress

Corrective

Activity already

confirmed to be

implemented

3

(C)

General Performance of audited

Unit

Comment

The audit did prove that all

Observations and NC’s from first

Surveillance Audit were complete

and professionally implemented

- -


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3.3 Issues raised by stakeholders

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

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

compliances were found.

As recommended in the 1st ASA Report, individual stakeholder meetings of Mill and Estates were conducted and documented.


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4. Certified organisation’s acknowledgedgement of internal responsibility

4.1 Formal sign-off of assessment findings

Addtional comments by Auditors

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

cooperation and for their hospitality throughout the entire audit!

2. As already communicated in the closing meeting, agroVet GmbH will terminate all P&C certification activities by the end of 2013. For

that reason we kindly ask the client to find another successing Certification Body / CB which will proceed with surveillance audits of this

certified unit. We of course will assist in the transition period if and where necessary!

Lead Auditor, Matthias Grill

Place, Name, Date and Signature

Enzersfeld, Version final, 18.11.2013

Matthias Grill

Original Version confirmed by Audit Team Kuala Lumpur, 18.11.2013 Cecep Saepulloh (electronically confirmed)

Chan Han Hee (electronically confirmed)


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5. Annexes

5.1 Report Confirmations

5.1.1a Report Confirmation - Client

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

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

und Signature

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

or

2. confirm this result by signature and make

additional comments to it (see table 9.2

below)

Place, Name, Date

und Signature

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

or

3. reject this report and will further more not

accept audit results

(Comments, complaints and justifications

may be added at table 5.1.1b below)

Place, Name, Date

und Signature

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


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

Nr. Comment Concerning Justification / Suggested action to be taken

1

2

3

4

5

6

7

8

9

10


98


5.1.2 Report Confirmation – Certification Department!

The Certification Officer has acknowledged this report and likes to:

1. confirm this result by signature:

Mag. Klaus Guger, Dwi Rahmad Muhtaman

Place, Name, Date

und Signature

Dwi Rahmad Muhtaman, Bogor:

or

2. disagree on audit report and is asking for

additional action to be taken: Ort, Name, Datum

und Unterschrift

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

Nr. Additional action Comment Responsibilities and time frame

1

2

and

3. finally to confirm the result after all relevant

and additional corrective actions have

been closed out (including Lead Auditors

re-confirmation) and signalizes compliance

for issuance of certificate

Ort, Name, Datum

und Unterschrift

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


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5.2 Divers Attachements, Supplementary Documents and others…

No. Kind of Attachement Issued by Concerning

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

data summarized in a power point presentation

A2 Checklists of Audit Auditor Team Checklist of each audited operation

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

all certified units - issued in 2013

A4 - - -

A5 - - -

A6 - - -

A7 - - -

A8 - - -

A9 - - -

A10 - - -


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5.3 Abbreviations

ASI Social Impact

CB Certification Body

CHRA Chemical Health Risk Assessment

CPO Crude Palm Oil

DID Department of Irrigation and Drainage

EFB Empty Fruit Bunches

FASSB Felda Agricultural Services Sdn Bhd

FM Felda Management

FTP Felda Techno Plant

FFB Fresh Fruit Bunches

GAP Good Agricultural Practice

HCV High Conservation Value

HQ Head Quarter

IPM Integrated Pest Management

LORR Legal and other Requirements Register

QMS Quality Management System

QM Quality Management

MPOB Malaysian Palm Oil Board


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mt metric tonn

NC Non Conformance

O Observation

PKO Palm Kernel Oil

PPP Plant Protection Product

p.a. per annum

SIA Social Impact Assessment

SOP Standard Operating Procedures

SOCSO Social Security Organization