felda global ventures plantations (malaysia) sdn bhd - Intertek

FELDA GLOBAL VENTURES PLANTATIONS (MALAYSIA) SDN BHD RSPO Membership No: 1-0013-04-000-00

PLANTATION MANAGEMENT UNIT KKS Hamparan Badai Grouping Lahad Datu, Sabah, Malaysia

INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)

Report No.: R9296/14-1 Felda Global Ventures Plantations (Malaysia) Sdn Bhd

KKS Hamparan Badai Grouping: Main Assessment

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Intertek RSPO Report: 11-15 Aug 2014 Main Assessment

MAIN ASSESSMENT REPORT ON RSPO CERTIFICATION

FELDA GLOBAL VENTURES PLANTATIONS (MALAYSIA) SDN BHD (358158-V)

RSPO Membership No: 1-0013-04-000-00

PLANTATION MANAGEMENT UNIT KKS Hamparan Badai Grouping

Lahad Datu, Sabah, Malaysia

Certificate No: RSPO 929688 Issued date: 4 December 2014 Expiry date: 3 December 2019 Assessment Type Assessment Dates Initial Certification (Main Assessment) 11-15 Aug 2014 Annual Surveillance Assessment (ASA-01) Annual Surveillance Assessment (ASA-02) Annual Surveillance Assessment (ASA-03) Annual Surveillance Assessment (ASA-04) Re-Certification

Intertek Certification International Sdn Bhd [formerly known as Moody International Certification (Malaysia) Sdn Bhd]

6-L12-01, Level 12, Tower 2, Menara PGRM No. 6 & 8 Jalan Pudu Ulu, Cheras, 56100 Kuala Lumpur, Malaysia. Tel: +00 (603) 9283 9881 Fax: +00 (603) 9284 8187 Email: [email protected]

Website: www.intertek.com




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TABLE OF CONTENTS

Section Content Page No

1.0 SCOPE OF ASSESSMENT

1.1 Introduction 4

1.2 Location (address, GPS and map) of palm oil mill and estates 4

1.3 Description of supply base (fruit sources) 5

1.4 Year of plantings and cycle 6

1.5 Summary of Land Use – Conservation and HCV Areas 6

1.6 Other certifications held and Use of RSPO Trademarks 6

1.7 Organizational information/contact person 7

1.8 Tonnages Verified for Certification 8

1.9 Time Bound Plan 9

1.10 Abbreviations Used 10

2.0 ASSESSMENT PROCESS

2.1 Assessment Methodology, Plan & Site Visits 11

2.2 Date of next scheduled visit 11

2.3 Qualifications of the Lead Assessor and Assessment Team 11

2.4 Certification Body 11

2.5 Process of Stakeholder consultation 12

3.0 ASSESSMENT FINDINGS

3.1 Summary of findings 14 – 43

3.2 Status of Identified Noncompliance and Corrective Actions, Observations and Identified Positive Elements

43 – 50

3.3 Summary of Feedback Received from Stakeholders and Findings 50 - 52

4.0 ASSESSMENT CONCLUSION AND RECOMMENDATION

4.1 Acknowledgement of Internal Responsibility and Confirmation of Assessment Findings 53

4.2 Intertek RSPO Certification Details for Plantation Management Unit 54 - 55

APPENDICES

Appendix A Qualifications of the Lead Assessor and Assessment Team 56

Appendix B Assessment Plan 57 - 58

Appendix C Maps of location – Mill, Estates, Conservation and HCV areas 59 - 64

Appendix D Photographs of Assessment findings at Plantation Manangement Unit 65 – 68

Appendix E Time Bound Plan for Other Plantation Management Units 69




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1.0 SCOPE OF MAIN ASSESSMENT

1.1 Introduction

This Main Assessment was conducted on the Plantation Management Unit (PMU) at KKS Hamparan Badai Grouping of Felda Global Ventures Plantations (Malaysia) Sdn Bhd (hereafter abbreviated as FGVPM), from 11-15 Aug 2014, to assess if the organization’s operations of the mill and its supply bases for compliance against the RSPO Principles and Criteria (April 2013), Malaysian National Interpretation (November 2010) and the RSPO Supply Chain Certification Standard (November 2011) for Palm Oil Mill. This assessment also includes a review of the changes made by the PMU to comply with the requirements of the ratified new RSPO Principles and Criteria (effective 25 April 2013). It was found that the PMU is aware of the new RSPO Principles and Criteria but yet make the necessary changes required. The plantation management unit (PMU) or management unit is equivalent to a certification unit as defined in the RSPO Certification Systems Document. Each PMU consists of one mill and its supply bases which are made up of estates owned and/or managed by FGVPM. 1.2 Location (address, GPS and map) of palm oil mill and estates

KKS Hamparan Badai Grouping consists of one palm oil mill, namely Hamparan Badai Palm Oil Mill and 7 estates as indicated in Table 1 below, which includes the addresses and GPS locations of the mill and estates. The location maps are provided in Appendix C.

During on-site visit, it was confirmed that estates Sahabat 24, Sahabat 26, Sahabat 31 & 32, and FASSB Tambisan has been actively supplying FFB to the Hamparan Badai Palm Oil Mill. The remaining 3 other estates i.e. Sahabat 28, Sahabat 33 and Sahabat 34, had recently been decided by the Top management to be part of the grouping, had commenced supplying FFB to the mentioned oil mill since August 2014.

Of the 7 estates, 6 estates i.e. FGVPM Sahabat 24, FGVPM Sahabat 26, FGVPM Sahabat 31 & 32, FGVPM Sahabat 28, FGVPM Sahabat 33 and FGVPM Sahabat 34 are managed by FGVPM and 1 estate i.e. Felda Tambisan is managed by FASSB.

Table 1: Address of Palm Oil Mill, Estates and GPS Location

GPS Reference Name Address

Latitude Longitude

Hamparan Badai POM (Capacity: 60 MT/hour)

Felda Palm Industries Sdn Bhd Kilang Sawit Hamparan Badai Peti Surat No. 25, 91150 Cenderawasih, Lahad Datu, Sabah, Malaysia

5°20'9.13"N 119°12'10.80"E

1. FGVPM Sahabat 24 estate

FGVP Ladang Sahabat 24, Peti Surat No. 31, Pos Cenderawasih, 91150 Lahad Datu, Sabah, Malaysia

5°16'49.37"N 119°12'57.60"E


FGVP Ladang Sahabat 26,Peti Surat No. 69, Pos Cenderawasih, 91150 Lahad Datu, Sabah, Malaysia

5°21'57.96"N 119°12'10.80"E

3. FGVPM Sahabat 31 & 32 estate


5°16'52.32"N 119°12'57.60"E

4. FASSB Tambisan estate

Stesen Penyelidikan Sahabat 59, Peti Surat No. 02, Pos Cenderawasih, 91150 Lahad Datu, Sabah, Malaysia

5°21'57.96"N 119°12'10.80"E


Pejabat Felda Sahabat 28, Peti Surat No. 96, Pos Cenderawasih, 91150 Lahad Datu, Sabah, Malaysia

5°21'58.21"N 119°12'7.20"E



5°21'57.96"N 119°12'10.80"E




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Pejabat Felda Sahabat 34, Peti Surat No. 34, Pos Cenderawasih,91150 Lahad Datu, Sabah, Malaysia

5°21'57.96"N 119°12'10.80"E

1.3 Description of supply base (fruit sources)

The supply of FFB to the POM at KKS Hamparan Badai Grouping PMU is from the following sources:-

(a) All the 7 estates currently under the PMU grouping as indicated under Table 2.

(b) Estates owned by independent small growers or Outside Crop Producers (OCP).

Note: There are no Felda Scheme Smallholders under this PMU grouping.

These supply bases have been considered in the overall assessment on Hamparan Badai Grouping -PMU and have been verified to be part of the Time Bound Plan committed by FGVPM for eventual certification.

Details of the planted hectarage for the FFB supply for KKS Hamparan Badai Grouping are as shown in Table 2 below.

Table 2: Estate Area Summary

Area Summary (ha) – 2013 Estate

Certified (Titled) Area Planted Area (Oil Palm)

1. FGVPM Sahabat 24 2,318.60 1,987.29

2. FGVPM Sahabat 26 3,769.10 3,492.26

3. FGVPM Sahabat 31 & 32 3,378.16 3,307.11

4. FASSB Tambisan 1,000.00 1,000.00

5. FGVPM Sahabat 28 2,784.35 2,596.47

6. FGVPM Sahabat 33 2,111.90 1,900.16

7. FGVPM Sahabat 34 1,711.20 1,711.20

Total: 17,073.31 15,994.49

Notes:

1. This Assessment covered the overall land use for oil palm plantation areas, and the identified Conservation areas including any HCV areas and other planted areas with Teak and Mahogany trees, as marked out at the respective estates.

2. The estates sampled for this Assessment have been selected based on their potential risks on social, environmental and biodiversity issues such as their proximity to forest reserves, hill sides, riparian zones and any high conservation value areas.




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1.4 Summary of plantings and cycle

The 7 estates had been developed beginning from 1984 and are currently in the 2nd cycle of planting for the oil palms. The age profile is as shown in Table 3.

Table 3: Age Profile of Planted Oil Palm (Year: 2013)

Estate Name Year of Planting Cycle of Planting - current

Mature OP (ha) – Above 3 years

Immature OP (ha) – 3 years & below

FGVPM Sahabat 24 1985 - 1986 2010 - 2013

2nd 1,359.47 627.82

FGVPM Sahabat 26 1988 - 1989 1st 3,492.26 0

FGVPM Sahabat 31 & 32 1985 - 1986 2011- 2013

2nd 2,965.09 342.02

FASSB Tambisan 2005 - 2006 2nd 1,000.00 0

FGVPM Sahabat 28 1985 - 1986 2011 - 2013

2nd 2,341.93 254.54

FGVPM Sahabat 33 1998- 2011 2nd 1,900.16 0

FGVPM Sahabat 34 1998- 2011 2nd 1,711.20 0

Total 14,770.11 1,224.38

1.5 Summary of Land Use - Conservation and HCV Areas

The summary of Conservation and HCV Areas as identified in KKS Hamparan Badai Grouping during this assessment is as shown in Table 4 below:

Table 4: Conservation and HCV Areas

# Statement of Land Use (Ha) 2013

Hectarage – Ha

1 Planted Area (ha) – Oil Palm

- Mature 14,770.11

- Immature 1,224.38

2 Conservation Area (ha)

- comprising buffer zones along small streams, hilly areas, swampy and unplantable areas

362.88

3 HCV Area (ha)

- comprising riparian / buffer zones near forest reserves, rivers, water catchments, burial & religious sites

0

1.6 Other certifications held and Use of RSPO Trademarks

Presently KKS Hamparan Badai Grouping held valid ISO 9001, ISO 14001 and OHSAS 18001 certifications for Palm Oil Mill. The RSPO’s trademarks and logo are not yet used by the PMU audited. Instructions for use were provided and acknowledged by the PMU through a signed Memorandum of commitment agreeing to adhere to the latest “RSPO Rules on Communications & Claims” during the assessment.




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1.7 Organizational information / Contact Person Name: Mr. Norazam Abdul Hameed Designation: Head of Department, Plantation Sustainability and Quality Management (PSQM) Department Full Address: Plantation Sustainability and Quality Management (PSQM) Department, Felda Global Ventures Plantations Malaysia Sdn Bhd, 3rd Floor, Balai Felda, Jalan Gurney Satu, 54000 Kuala Lumpur, Malaysia. Tel: +603-26005348 ext 5348 or +603-26005349 ext 5349 Fax: +603-26987816 Email: [email protected] Name: Mr. Anthonius Sani Designation: Sustainability Manager, Plantation Sustainability and Quality Management (PSQM) Department Full Address: Plantation Sustainability and Quality Management (PSQM) Department, Felda Global Ventures Plantations Malaysia Sdn Bhd, 3rd Floor, Balai Felda, Jalan Gurney Satu, 54000 Kuala Lumpur, Malaysia. Tel: +603-26005348 ext 5348 or +603-26005349 ext 5349 Fax: +603-26987816 Email: [email protected]




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1.8 Tonnages Verified for Certification

The breakdown of all the suppliers and their tonnages of FFB supplied to the POM at KKS Hamparan Badai Grouping based on the actual for Jan - Aug 2014 and projected for Sept - Dec 2014 are as follows:

Table 5: FFB Tonnages

# Estate /Supplier FFB Received

(MT) Main Receiving Mill

Certified By (Year)

PMU Estates:

1. FGVPM Sahabat 24 23,180 KKS Hamparan Badai Intertek (2014)

2. FGVPM Sahabat 26 50,277 KKS Hamparan Badai Intertek (2014)

3. FGVPM Sahabat 31 & 32 43,598 KKS Hamparan Badai Intertek (2014)

4. FASSB Tambisan 21,741 KKS Hamparan Badai Intertek (2014)

5. FGVPM Sahabat 28* 8,333 KKS Hamparan Badai Intertek (2014)



Sub-total from PMU estates 172,390

FELDA Settlers’ Scheme:

8. Nil 0

Sub-total from Settlers’ scheme 0

Other certified FELDA PMUs:

9. Nil 0

Sub-total from other certified estates 0

Total certifiable FFB 172,390

Other suppliers/external FFB

10. Outside crop producers (OCP) – dealers, outgrowers etc

23,000 Numerous estates

in the Felda Sahabat region

Not yet certified

Grand total 195,390

Note*: The 3 estates namely Sahabat 28, 33, 34 had started supplying FFB to the POM since August 2014 and are currently during the assessment, designated under the KKS Hamparan Badai Grouping.




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Total annual volumes / tonnages of FFB supplied from the supply base to the POM during the previous annual period, current Main Assessment period and projected period are as follows:

Table 6: FFB Processed (Certified & Non-certified) tonnages

Estate / Supplier FFB Processed in Jan – Dec 2013

- Actual

FFB Processed in Jan – Dec 2014

- Actual & Projected

FFB Processed for Jan – Dec 2015 - Projected

MT % MT % MT %

PMU Estates 178,120 91.20 172,390 87.50 171,500 87.50

FELDA Settlers’ Scheme 0 0 0 0 0 0

Other Certified FELDA PMU 0 0 0 0 0 0

Certifiable FFB 178,120 91.20 172,390 88.23 171,500 87.50

Non-certified FFB from OCP 17,190 8.80 23,000 11.77 24,500 12.50

Total 195,310 100.00 195,390 100.00 196,000 100.00

SCCS Model for POM MB MB MB

Total FFB Processed (MT) 195,310 195,390 196,000

Total CPO Production (MT) 40,097.14 OER:

20.53% 40,055

OER: 20.50%

40,180 OER:

20.50%

Total PK Production (MT) 9,667.85 KER: 4.95%

9,770 KER: 5.00%

9,800 KER: 5.00%

The annual certifiable tonnages of CPO and PK production by KKS Hamparan Badai Grouping from the supply base / suppliers as assessed and verified during this Main Assessment and projected for next year are detailed as follows:

Table 7: Certifiable Tonnages

POM Jan – Dec 2013

- Actual

Jan – Dec 2014


Jan – Dec 2015

- Projected

Total certifiable FFB Processed (MT)

178,120 172,390 171,500

Total certifiable CPO Production (MT)

36,568 35,322 35,158

Total certifiable PK Production (MT)

8,817 8,620 8,575

SCCS model for POM MB MB MB

Note: The POM has established and maintained procedures for the book keeping and monitoring requirements for the CPO at the mill. It is verified that POM has procedures for the ‘Mass Balance – MB” model in accordance with the RSPO Supply Chain Certification Standards (SCCS) requirements. Verified activities and checked items for the SCCS of the POM are reported in section 3.1.1. 1.9 Time Bound Plan for Other Plantation Management Units

FGVPM Group operates 70 palm oil mills and 416 oil palm estates and schemes throughout Malaysia. The organization is a member of RSPO since 2004 and has been taking an active role in the RSPO certification. Currently, a significant number of its Certification Units is undergoing the RSPO certifying process in accordance with its time bound plan to achieve RSPO certification for all its plantation certification units by 2016.




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Based on the due diligence conducted on FGVPM there were no significant land conflicts, no replacement of primary forest or any area containing HCVs since November 2005, no labour disputes that are not being resolved through an agreed process, no evidence of non-compliance with law in any of the non-certified holdings. Details of the status of the Time Bound Plan as submitted by FGVPM are referred to in Appendix E (Part 2 of Assessment report).

1.10 Abbreviations Used

CB Certification Body IUCN International Union for Conservation of Nature

CHRA Chemical Health & Risk Assessment KER Kernel Extraction Rate

CPO Crude Palm Oil LTA Lost Time Accidents

CSDS Chemical Safety Data Sheets MSDS Material Safety Data Sheets

CSPO Certified Sustainable Palm Oil MTCS Malaysia Timber Certification Scheme

CSPK Certified Sustainable Palm Kernel NCR Non-Conformance Report

EFB Empty Fruit Bunch NGO Non-Government Organization

EHS Environmental Health & Safety OER Oil Extraction Rate

EIA Environmental Impact Assessment OHS Occupational Health & Safety

ETP Effluent Treatment Plant PEFC Programme for the Endorsement of Forest Certification

FASSB Felda Agricultural Services Sdn Bhd PK Palm Kernel

FELDA Federal Land Development Authority PMU Plantation Management Unit

FGVPM Felda Global Ventures Plantations (Malaysia) Sdn Bhd

POM Palm Oil Mill

FFB Fresh Fruit Bunch POME Palm Oil Mill Effluent

GAP Good Agriculture Practice PPE Personal Protective Equipment

HCV High Conservation Values SCCS Supply Chain Certification Standard

Intertek Intertek Certification International Sdn Bhd SOP Standard Operating Procedures

IPM Integrated Pest Management

ISCC International Sustainability & Carbon Certification




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2.0 ASSESSMENT PROCESS

2.1 Assessment Methodology, Plan and Site Visits

Since 12 June 2014, Intertek has initiated public communications and notifications and invited the relevant stakeholders before the assessment to provide feedback and comments on their concern (if any) on KKS Hamparan Badai Grouping regarding the environmental, biodiversity, community development and other relevant issues.

From 11-15 Aug 2014, the Assessment team conducted the Main Assessment in which 3 out of the 7 estates of KKS Hamparan Badai Grouping, namely FGVPM Sahabat 26, FASSB Tambisan (59) and FGVPM Sahabat 34 estates including the palm oil mill were assessed for compliance against the RSPO requirements. The number of estates sampled was based on a minimum sample of 0.8√y where y is the number of management sub-units and the selection was made based on their potential risks on social, environmental and biodiversity issues such as their proximity to forest reserves, hill sides, riparian zones and high conservation value areas.

During the on-site assessment, relevant documents and records, including Standard Operating Procedures (SOP), management plans, hectarage development, FFB, CPO and PK production, oil palm age profile, operational controls and measures, operational data and records, training records etc were reviewed and verified for compliance. The Assessment team applied process approach auditing technique, covering palm oil mill and estate operations, agricultural practices, pest management, pesticide and fertilizer application, occupational health and safety, social accountability, environment and other requirements. Stakeholders’ interviews were conducted during the assessment and feedback obtained as part of information and evidence gathering (See section 2.5 Process of stakeholder consultation).

KKS Hamparan Badai Grouping POM was also assessed against the requirements of RSPO Supply Chain Certification Standard for CPO mill. This part of the assessment covered the verification of implementation of documented procedures and availability of records to demonstrate compliance against all the elements for the ‘Mass Balance’ - MB Module requirements. These include documented procedure, purchasing and goods in, record keeping, sales and goods out, processing, monitoring and traceability of the CSPO and CSPK quantities, training for staff and claims.

After completion of the on-site field assessment, Intertek also performed the evaluation of conformity against the RSPO Certification System requirements for CB. The assessment report, findings and associated documents were evaluated through independent reviews by the Intertek Internal Technical Review Panel which was subsequently validated by an external Peer Review prior to the Certification decision and approval of this report.

The details of the Assessment Plan (actual on-site) are provided in Appendix B.

2.2 Date of next scheduled visit

The next scheduled visit will be the Surveillance Assessment which will be carried out within a 12-month period after the Certification decision and approval date of this report. 2.3 Qualifications of the Lead Assessor and Assessment Team

Competency details of the Lead Assessor and Assessment Team are given in Appendix A. 2.4 Certification Body

Intertek Certification International Sdn Bhd [formerly known as Moody International Certification (Malaysia) Sdn Bhd] is part of the Intertek Group, which is a worldwide technical services organization dedicated to reducing clients' risks by providing technical inspection services, management system certification in quality, environmental, occupational safety & health and product certification, RSPO SCC, ISCC, Marine Sustainability Chain-of-Custody, MTCS and PEFC Chain-of Custody certification in applicable industry sectors including the agricultural and forestry sectors. Intertek operates globally providing clients with a wide-ranging technical inspection expertise and access to thousands of skilled specialists worldwide. Intertek Group’s certification business is ranked in the top 10 worldwide, and is available globally offering certification across a wide range of industries. 2.5 Process of stakeholder consultation

Stakeholder consultations began with notification of the upcoming assessment through the websites of RSPO, FGVPM and Intertek. E-mails were sent to applicable stakeholders including government agencies, NGOs and




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local communities. E-mails and telephone enquiries were made prior to the actual assessment and stakeholder’s response and feedback received were followed up accordingly. During the assessment, stakeholders were interviewed and their feedbacks were recorded. Among the stakeholders consulted were workers, trade union leaders, women representatives; local community leaders, representatives of government departments / agencies, NGOs, suppliers and contractors. Details on stakeholders’ feedback, PMU response and Intertek verification / comments are provided in section 3.3. Among the list of key stakeholders consulted was the following:

Government Agencies (by emails) 1. Department of Lands And Mines, WP 10. Environment Protection Department Sabah 2. Department of Environment, WP 11. Department of Forestry, Sabah 3. Department of Forestry Peninsular Malaysia 12. Department of Immigration, Sabah 4. Department of Immigration, WP 13. Department of Irrigation & Drainage, Sabah 5. Department of Irrigation & Drainage, WP 14. Department of Labour, Sabah 6. Department of Labour, WP 15. Department of Occupational Safety & Health, Sabah 7. Department of Occupational Safety & Health. WP 16. Sabah Wildlife Department 8. Department of Orang Asli Affairs, WP 17. Land and Mines Office, Sabah 9. Department of Wildlife & National Parks, WP Statutory Bodies (by emails) 18. Malaysian Palm Oil Board (MPOB) 23. Malaysian Palm Oil Board (MPOB) - Sarawak Region 19. Malaysian Palm Oil Board (MPOB) - Northern Region 24. Malaysian Palm Oil Board (MPOB) - Sabah Region 20. Malaysian Palm Oil Board (MPOB) - Central Region 25. Malaysia Palm Oil Association (MPOA) 21. Malaysian Palm Oil Board (MPOB) - Southern Region 26. Malaysia Palm Oil Association Kuala Lumpur (MPOA) 22. Malaysian Palm Oil Board (MPOB) - Eastern Region 27. Malaysia Palm Oil Association Sabah (MPOA) NGOs (by emails) 28. All Women’s Action Society (AWAM) 57. Malaysian Nature Society Terengganu 29. BCSDM - Business Council for Sustainable

Development in Malaysia 58. Malaysian Plant Protection Society (MAPPS)

30. Borneo Child Aid Society (Humana) 59. Mountaineering and Outdoor Pursuits Association of Negeri

Sembilan

31. Borneo Resources Institute Malaysia (BRIMAS) 60. National Council of Welfare & Social Development

Malaysia - NCWSDM 32. Borneo Rhino Alliance (BORA) 61. National Union of Plantation Workers (NUPW) 33. Center for Orang Asli Concerns COAC 62. Partners of Community Organisations (PACOS) 34. Centre for Environment, Technology and Development,

Malaysia - CETDEM 63. Penang Institute previously known as Socio-Economic &

Environmental Research Institute (SERI) 35. Consumers Association Of Penang - CAP 64. Proforest - South East Asia Regional Office

36. EcoKnights 65. R.E.A.C.H. - Regional Environmental Awareness Cameron

Highlands 37. Environmental Management and Research Association

of Malaysia (ENSEARCH) 66. Sabah Wetlands Conservation Society (SWCS)

38. Environmental Protection Society Malaysia (EPSM) 67. SEPA - Sabah Environmental Protection Association 39. Friends of the Earth, Malaysia 68. SUARAM - Suara Rakyat Malaysia

40. Future in Our Hands Society, Malaysia 69. SUHAKAM - National Human Rights Society - Persatuan

Kebangsaan Hak Asasi Manusia 41. Global Environment Centre 70. Sustainable Development Network Malaysia (SUSDEN) 42. Institute of Foresters, Malaysia (IRIM) 71. Tenaganita Sdn Bhd 43. JUST - International Movement for a Just World 72. The Malaysian Forum of Environmental Journalist (MFEJ) 44. Malaysian Environmental NGOs - MENGO 73. TRAFFIC - the wildlife trade monitoring network 45. Malaysian National Animal Welfare Foundation -

MNAWF 74. TRAFFIC Southeast Asia - Wildlife trade & trafficking

monitoring programme 46. Malaysian Nature Society (MNS) Kuala Lumpur 75. Transparency International - Malaysian Chapter 47. Malaysian Nature Society Johor 76. Treat Every Environment Special Sdn Bhd. (TrEES) 48. Malaysian Nature Society Kedah 77. United Nations Development Programme - UNDP Malaysia 49. Malaysian Nature Society Kelantan 78. Water Watch Penang (WWP) 50. Malaysian Nature Society Kuching 79. Wetlands International (Malaysia) 51. Malaysian Nature Society Melaka/Negeri Sembilan 80. Wild Asia Sdn Bhd 52. Malaysian Nature Society Miri 81. World Wide Fund for Nature (WWF) Malaysia 53. Malaysian Nature Society Pahang 82. World Wide Fund of Nature (WWF) Sabah 54. Malaysian Nature Society Perak 83. UNION - AMESU 55. Malaysian Nature Society Pulau Pinang 84. Malaysian CropLife & Public Health Association (MCPA) 56. Malaysian Nature Society Sabah 85. Pesticide Action Network Asia and the Pacific (PAN AP)




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Local community (On-site interviews) Supplier representatives Contractors representatives Workers & Workers representatives Government representatives Transport representative




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3.0 ASSESSMENT FINDINGS

3.1 Summary of findings

Principle 1: Commitment to transparency

Criterion 1.1

Growers and millers provide adequate information to relevant stakeholders on environmental, social and legal issues relevant to RSPO Criteria, in appropriate languages and forms to allow for effective participation in decision making.

Indicators Findings and Objective Evidence Compliance

1.1.1 There shall be evidence that growers and millers provide adequate information on (environmental, social and/or legal) issues relevant to RSPO Criteria to relevant stakeholders for effective participation in decision making.

Major Compliance

Documented procedure ML-1A/L2-PR3-0, Mar 2012 for providing information, handling responses and requests from stakeholders was established and communicated at FGVPM Hamparan Badai PMU. The mill and estate management have recorded and responded constructively and promptly to any requests for information from the interested stakeholders.

A stakeholders meeting was held on 17 December 2013 with stakeholders’ feedback recorded. The PMU gave prior notice of the stakeholders’ consultation.

It was evident from records sighted among which were letters, minutes of meetings, attendance notes held together with local authorities (e.g. DOSH, DOE and BOMBA), security services, schools, clinics, employee consultative committees and local community leaders.

Records of visits and inspections such as DOSH (JKKP) factory visits, DOE (JAS) sampling of effluent, BOMBA inspection records were verified on-site.

Date of public notification of this main assessment of PMU was made on 12 June 2014. There was no negative feedback received from stakeholders prior to on-site audit.

Complied

1.1.2 Records of requests for information and responses shall be maintained.

Major / Minor - TBF

The PMU maintained an updated list of internal stakeholders, external stakeholders which included the government departments/agencies, consultants, contractors, suppliers and transporters.

Request and responses were noted in the Record Log book maintained which indicated the actions taken and date from Jan to July 2014. These were verified to be adequately maintained.

Other implementation documents & records were sighted from FFB supplying estates, which included land titles, training materials, health & safety plan, environmental & social impacts assessment, pollution prevention plan, complaint files, negotiation procedure, continual improvement plans.

Complied

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.


1.2.1 Publicly available documents shall include, but are not necessarily limited to:

In line with the organization’s policies , Hamparan Badai PMU had established & documented information of land titles, health and safety plan, plans and impact assessments relating to environment and social impacts, pollution prevention plans, details of complaints &

Complied




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Major Compliance

• Land titles/user rights (Criterion 2.2);

grievances, negotiation procedures and continuous improvement plan that are required to be made available to the public & also for internal reference.

Copies of all the land titles were available and have been maintained.

• Occupational health and safety plans (Criterion 4.7);

Detailed documented plan of OSH established in PFI/L4/QOHSE-1.4 (1), updated & reviewed since Apr 2014. Programmes for protecting workers’ health & safety measures established & implemented.

Complied

• Plans and impact assessments relating to environmental and social impacts

(Criteria 5.1, 6.1, 7.1 and 7.8);

Environmental aspect and impact assessment, and its plan as well as social impact assessment were documented.

The SEIA established by Sustainability team (HQ) was reviewed in 17 December 2013 with feedback from the Mill, Estate managers and RSPO implementation team. See also related findings in C 5.1 and 6.1.

Complied

• HCV documentation (Criteria 5.2 and 7.3);

Based on the internal SEIA survey and evaluation, there was no HCV area at FGVPM Hamparan Badai PMU.

Management Action for Conservation areas need to be monitored and progressively implemented at the respective Estates. See also findings detailed under C5.2 and C7.3.

Complied

• Pollution prevention and reduction plans (Criterion 5.6);

Pollution prevention & reduction plans were documented in FGVPM, 1/2013. It includes measures for pollution control (incl. pesticides, schedule wastes, domestic wastes etc). See also findings detailed under C5.6.

Complied

• Details of complaints and grievances (Criterion 6.3);

Documented in ML-1A/L2-PR10 (0), dated Mar 2012. Complaints / queries and enquiries records for internal and external stakeholders were implemented but inadequately implemented and followed up.

Complied

• Negotiation procedures (Criterion 6.4);

Negotiation procedure was documented in ML-1A/L2-PR1 (0), updated & reviewed Mar 2012.

There were no reported cases of any land conflict so far, at the Hamparan Badai PMU.

Complied

• Continual improvement plans (Criterion 8.1);

Documented in ML-1A/L2-PR11 (0), dated Mar 2012.

Complied

• Public summary of certification assessment report;

Public summary of earlier certification assessment reports of FELDA certifications achieved were available in the website:

www.felda.net.my

The new integrated website under Felda Global Ventures for public summary of RSPO assessments is currently still being constructed.

Complied

• Human Rights Policy (Criterion 6.13).

The Human Rights Policy has not yet been documented and communicated to all levels of the workforce and operations.

OBS 1.

New requirement of RSPO P&C (2013) - Follow up will be done at Surveillance assessment.

Criterion 1.3




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Growers and millers commit to ethical conduct in all business operations and transactions.


1.3.1 There shall be a written policy committing to a code of ethical conduct and integrity in all operations and transactions, which shall be documented and communicated to all levels of the workforce and operations.

Major / Minor (TBF)

Policy of Commitment to a Code of Ethical Conduct and Integrity has not yet been documented and communicated to all levels of the workforce and operations.

OBS 2.

New requirement of RSPO P&C (2013) - Follow up will be done at Surveillance assessment.

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 relevant legal requirements shall be available.

Major Compliance

Felda Hamparan Badai-PMU has established a documented system explaining the mechanism for identifying, determining, reviewing and updating applicable legal and other requirements that the PMU has subscribed. Based on the site observations, interviews and records checking at the field and mill, there were evidences of compliance with the relevant laws, regulations, local and international laws at the POM and estates. There was no case of any violation or action imposed by relevant authorities.

Palm oil mill possessed valid MPOB license which has been recently renewed which will expire on 31 March 2015.

Licenses and permits (License for Trading, License for Employment of Foreign Workers, Workers Wages Deduction Permit, Domestic and Consumer Permit for Keeping Diesel, Petrol & Fertilizer, DOSH Certificates, DOE Permit, etc) were renewed and evidenced to be valid.

Competent steam engineers, boilermen and electricians confirmed with qualification certificates from relevant authorities (DOSH and Energy Commission).

Valid certificates of fitness for boilers, sterilizers, air receivers, thermal de-aerator, steam separator, vacuum oil dryer endorsed by DOSH for compliance with The Factories and Machinery Act 1967, Regulations 1970.

Valid license for diesel generators issued by Energy Commission (“Suruhanjaya Tenaga”).

Oil mill is currently certified by SIRIM to ISO 9001, ISO 14001, as well as OHSAS 18001 Management Systems.

Though there were 3 year ‘continual programme’ to reduce the volume use of paraquat at each estates, the target limit for 3 years was the same.

Complied

OBS 3.

2.1.2 A documented system, which includes The documented system Doc No. ML-IA/L4-API (0) for




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written information on legal requirements, shall be maintained.

Minor Compliance

identifying, determining, reviewing and updating applicable legal and other requirements has been maintained.

However, neither copy nor reference on these written info on legal requirements available for the following: Sabah Land Ordinance; EIA (Order 2005); Drainage & Irrigation Ordinance Sabah; Akta Surahanjaya Hak Asasi Manusia 1999; Road Transport Act; Street, Drainage & Building Act 1974 (Act 133).

Minor NC 1/14

2.1.3 A mechanism for ensuring compliance shall be implemented.

Minor Compliance

Monitoring mechanism was done through a 12-monthly evaluation checked against the items in the Legal Register.

Monitoring mechanism at palm oil mill for ensuring compliance to legal requirements carried out recently on 1 May 2014, covering areas of environmental issues, & another monitoring on 7 Jan 2013 for factory & machinery, & occupational safety & health only. The other issues of social & conservation had not been covered.

Minor NC 2/14

2.1.4 A system for tracking any changes in the law shall be implemented.

Minor Compliance

The system for tracking changes in the law established had been implemented and updates documented.

Complied

Criterion 2.2

The right to use the land is demonstrated, and is not legitimately contested by local people who can demonstrate that they have legal, customary or user rights.


2.2.1 Documents showing legal ownership or lease, history of land tenure and the actual legal use of the land shall be available.

Major Compliance

The lands in the Sahabat region are legally leased by Felda from the Sabah State Government since 1981 as evidenced by the copies of land tiles produced and verified on-site.

The original copies are maintained by the corporate head office at KL. The legal use of the land was confirmed for the cultivation of oil palms and agricultural use.

Copies of the land titles of all the PMU estates were maintained and found to be in proper order.

Complied

2.2.2 Legal boundaries shall be clearly demarcated and visibly maintained.

Major Compliance

It was verified that there has been no change to the stated land titles and designated use for cultivation of oil palms and agricultural use.

Legal boundary markers were sighted and maintained along the perimeters of estate lands which were mapped with a 1- meter differential Global Positioning System (GPS).

Locations of several boundary stones and pole markers were visited. Verified that the pole markers were within the boundary parameters of each estate. Demarcation was also evidenced by the dug up trenches and drains.

Complied




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2.2.3 Where there are or have been disputes, additional proof of legal acquisition of title and evidence that fair compensation has been made to previous owners and occupants shall be available, and that these have been accepted with free, prior and informed consent (FPIC).

Major / Minor (TBF)

There has been no dispute on the land rights within the Hamparan Badai PMU.

As such, the process of fair compensation and FPIC is currently not applied.

Complied

2.2.4 There shall be an absence of significant land conflict, unless requirements for acceptable conflict resolution processes (see Criteria 6.3 and 6.4) are implemented and accepted by the parties involved.

Major / Minor (TBF)

Due diligence was exercised through the implementation of documented procedure for handling and response to land disputes, customary rights in ML-1A/L2-PR12(0), Mar 2012; documented procedure for handling negotiation in ML-1A/L2-PR1(0), Mar 2012; as well as documented procedure for calculation & distribution of compensation in ML-1A/L2-PR13(0), Mar 2012.

There has been no dispute on the land rights within the Hamparan Badai PMU (see C2.2.3 above)

Complied

2.2.5 For any conflict or dispute over the land, the extent of the disputed area shall be mapped out in a participatory way with involvement of affected parties (including neighbouring communities where applicable).

Major / Minor (TBF)

As per the procedure and mechanism documented, whenever there were incidences of land conflict, the disputed areas would be mapped out in participatory way with involvement of affected parties. Internal investigation would be carried out, and appropriate follow up actions taken to resolve land conflict issues.

Complied

2.2.6 To avoid escalation of conflict, there shall be no evidence that palm oil operations have instigated violence in maintaining peace and order in their current and planned operations.

Major / Minor (TBF)

As per the procedure and mechanism documented, precautionary measures would be on those disputed area during the investigation period. Avoidance of violence would be exercised to maintain peace and order in their current and planned operations at the estates.

Complied

Criterion 2.3

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


2.3.1 Maps of an appropriate scale showing the extent of recognised legal, customary or user rights (Criteria 2.2, 7.5 and 7.6) shall be developed through participatory mapping involving affected parties (including neighbouring communities where applicable, and relevant authorities).

Major Compliance

The lands in the Sahabat region are legally leased by Felda from the Sabah State Government since 1981 as evidenced by the copies of land tiles and maps produced which were verified on-site.

Complied

2.3.2 Copies of negotiated agreements detailing the process of free, prior and informed consent (FPIC) (Criteria 2.2, 7.5 and 7.6) shall be available and shall include:

a) Evidence that a plan has been developed through consultation and discussion with all affected groups in the communities, and that information has been provided to all affected groups, including information on the steps that shall be taken to involve them in decision making;

b) Evidence that the company has respected communities’ decisions to give or withhold their consent to the operation at the time that this decision was taken;

c) Evidence that the legal, economic,

Records are available to show that the land lease comply with legal requirements and does not infringe on any legal rights that require free, prior and informed consent (FPIC).

Complied




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environmental and social implications for permitting operations on their land have been understood and accepted by affected communities, including the implications for the legal status of their land at the expiry of the company’s title, concession or lease on the land.

Minor Compliance

2.3.3 All relevant information shall be available in appropriate forms and languages, including assessments of impacts, proposed benefit sharing, and legal arrangements.

Major / Minor (TBF)

All the relevant and information and pertinent documents were also available in the local language i.e. Bahasa Malaysia which can be understood by the stakeholders.

Complied

2.3.4 Evidence shall be available to show that communities are represented through institutions or representatives of their own choosing, including legal counsel.

Major / Minor (TBF)

As there were no case of land dispute reported in the PMU, the evidence for this did not apply.

Complied

Principle 3: Commitment to long-term Economic & Financial Viability

Criterion 3.1

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


3.1.1 A business or management plan (minimum three years) shall be documented that includes, where appropriate, a business case for scheme smallholders.

Major Compliance

The 3-year management plan from 2014 -2017 had been documented, with details of budget & cost of operation, both for oil mill & estates.

Annual budget of Business Management Plan included the following: (i) Planting materials (DXP seedling and cloned seedling); (ii) Crop projection = FFB yield/ha trends; (iii) Mill extraction rates = OER trends; (iv) Cost of Production = Cost/MT FFB trends; (v) Cost of Production = Cost/MT CPO trends; (vi) Forecast prices; (vii) Financial indicators = Cost labor, supervision, production and machinery depreciation).

Oil mill and Estate Managers conducted monthly review of operational performance against Key Performance Indications and targets (FFB yields, quality, productivity, pesticides usage, fertilizers usage, etc). Evidence of monitoring of costs against budget verified.

Monthly, quarterly, half-yearly and yearly reports are submitted to the General Manager of Zone/Wilayah.

Complied

3.1.2 An annual replanting programme projected for a minimum of five years (but longer where necessary to reflect the management of fragile soils, see Criterion 4.3), with yearly review, shall be available.

Minor Compliance

The Annual replanting programme projected for the next 5 years for each estate in this PMU is available. Evidence of replanting programme planned, reviewed and on-going implementation being carried out was observed during the on-site assessment and field inspection.

Complied




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

Criterion 4.1

Operating procedures are appropriately documented, consistently implemented and monitored.


4.1.1 Standard Operating Procedures (SOPs) for estates and mills shall be documented.

Major Compliance

The mill and the estates had a copy each of the Standard Operating Procedures and these had been verified to be in order.

Documented procedures for oil mill verified: 1. Palm Oil Mill Operation Manual (08/04/2010) covering every station from the security gate for reception of FFB until the delivery of processed oil and POME management. 2. Laboratory Operation Manual (28/04/2011). 3. Quality, Environmental and Occupational Health & Safety Manual and Procedures of Palm Oil Mill (24/02/210). These procedures addressed measuring and monitoring mill effluents and waste disposal / recycling. 4. Procedure for Safe Work and Management of Safety and Health for Workers (14/07/2010). This procedure addresses hazards identification, risk assessment and control measures. Those work hazards like chemicals, heat, noise, fire, working at heights, working in enclosed space, hot work, fuel spillage, lightning and electrocution. Control measures with the use of PPE, fire drill training, first aid training and “permit to work system” specified. 5. Supply Chain Procedure (1 Dec 2012) SOP for Mill RSPO Supply Chain Certification System using the Mass Balance (MB) module.

Documented procedures for estates verified: 1. Sustainable Oil Palm Estate Operation Manual issued by FELDA Agricultural Services Sdn Bhd (FASSB) on 01/06/2012. This document addresses best nursery practices, land preparation, planting practices, ground cover maintenance, roads, immature stage, harvesting, collection of bunches, manuring, pesticide application, pests & diseases control. SOP for pesticides establishes safe working practices and application of pesticides. It includes annual medical surveillance for pesticides operators. 2. SOP for riparian zone management with specified buffer zones.

Complied

4.1.2 A mechanism to check consistent implementation of procedures shall be in place.

Major / Minor (TBF)

The mechanism to check the implementation of SOPs was available. Records had been kept by the staff concerned for each operation to monitor the procedure and progress of work, and these records would be checked by the Assistant Manager and the Manager regularly. These records had been verified to indicate satisfactory implementation during the visit.

Complied

4.1.3 Records of monitoring and any actions taken shall be maintained and available, as appropriate.

The records of monitoring and the actions taken had been maintained for more than 12 months on the mill and estates concerned. These records had

Complied




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Minor Compliance

been verified to be satisfactory.

4.1.4 The mill shall record the origins of all third-party sourced Fresh Fruit Bunches (FFB).

Major / Minor (TBF)

The mill maintained record on the origins of all third-party sourced Fresh Fruit Bunches (FFB), and it had been verified to be satisfactory.

Complied

Criterion 4.2

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


4.2.1 There shall be evidence that good agriculture practices, as contained in Standard Operating Procedures (SOPs), are followed to manage soil fertility to a level that ensures optimal and sustained yield, where possible.

Minor Compliance

GAP for minimization of soil erosion and maintenance of soil fertility is maintained via the frond stacking and fertilizer application as per the recommendation provided from FELDA Research Centre.

These had been verified through the records for fertilizer application and observation during field visit.

Complied

4.2.2 Records of fertiliser inputs shall be maintained.

Minor Compliance

Records of fertilizer application had been verified to have been applied in accordance to recommendations from the Group Agronomist report over the past 12 months.

Complied

4.2.3 There shall be evidence of periodic tissue and soil sampling to monitor changes in nutrient status.

Minor Compliance

Leaf and soil sampling and analysis had been carried out annually to determine the nutrient levels for fertilizer recommendations that aimed to sustain the long term soil fertility and nutrient efficiency. Records of the sampling and analysis had been verified to be satisfactory.

Complied

4.2.4 A nutrient recycling strategy shall be in place, and may include use of Empty Fruit Bunches (EFB), Palm Oil Mill Effluent (POME), and palm residues after replanting.

Minor Compliance

EFB mulching had been carried out in the mature area in Sahabat 26, Sahabat 34 and FASSB Tambisan estates. EFB had been also been partly used as fuel in the mill. Records had been verified to be satisfactory.

POME land irrigation had been carried out in solely for the Sahabat 26 estate i.e. nearest to the POM.

Complied

Criterion 4.3

Practices minimise and control erosion and degradation of soils.


4.3.1 Maps of any fragile soils shall be available.

Minor Compliance

There are no fragile soils indicated in the soil maps available and this was verified during on site visit at the sampled estates.

Complied

4.3.2 A management strategy shall be in place for plantings on slopes above a certain limit (this needs to be soil and climate specific).

Minor Compliance

Planting terraces had been constructed on land with slope 6° to 25°. Records and maps on terraces constructed had been verified on the estates.

There was no soil erosion noted during the visit.

Complied

4.3.3 A road maintenance programme shall be in place.

Minor Compliance

Estate roads were found to be in good and satisfactory condition. Road maintenance programme had been found to be in adhered.

Complied




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4.3.4 Subsidence of peat soils shall be minimised and monitored. A documented water and ground cover management programme shall be in place.

Minor Compliance

Based on the estate soil maps, there was no peat soil on the estates as confirmed by auditor’s on-site assessment.

Complied

4.3.5 Drainability assessments shall be required prior to replanting on peat to determine the long-term viability of the necessary drainage for oil palm growing.

Minor Compliance

Based on the estate soil maps, there was no peat soil on the estates as confirmed by auditor’s on-site assessment

Complied

4.3.6 A management strategy shall be in place for other fragile and problem soils (e.g. sandy, low organic matter, acid sulphate soils).

Minor Compliance

Based on the estate soil maps and visit to the estates, there were no other fragile and problematic soils on these estates.

Complied

Criterion 4.4

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


4.4.1 An implemented water management plan shall be in place.

Major / Minor - TBF

Documented water management plan and relevant records had been verified to be in available and was adequately implemented at the POM, Sahabat 26, Sahabat 34 and FASSB Tambisan estates.

Complied

4.4.2 Protection of water courses and wetlands, including maintaining and restoring appropriate riparian and other buffer zones (refer to national best practice and national guidelines) shall be demonstrated.

Major Compliance

There was no construction of bunds/ weirs/dams across the main rivers or waterways passing through the estates.

However the following was noted during on-site field inspection:

At Sahabat 26 estate (Field 22) there was absence of signage for the buffer zone and clear demarcation of the boundary at the sides of a river tributary bordering to the Kampong Long Patau land.

At Sahabat 34 estate (Field 24) there were signboards showing the buffer zone area (adjacent to tributary of Sungai Ganduman). However, the boundary for the buffer zone to be maintained had not been clearly demarcated at both sides of the tributary.

NCR 3 of 14 – Major

4.4.3 Appropriate treatment of mill effluent to required levels and regular monitoring of discharge quality, especially Biochemical Oxygen Demand (BOD), shall be in compliance with national regulations (Criteria 2.1 and 5.6).

Major / Minor - TBF

In palm oil mill, water samples had been taken at monthly interval at the discharge point of effluent pond. BOD levels had been in the range of 11 ppm to 26 ppm in 2014 with an average of 18 ppm over 2014 (6 month period).

The upper limit specified and regulated by D.O.E. was 100 ppm.

Complied

4.4.4 Mill water use per tonne of Fresh Fruit Bunches (FFB) (see Criterion 5.6) shall be monitored.

Minor Compliance

Water usage in the mill ranged from 0.92 m3 to 1.04 m3/tonne FFB in 2014 with an average of 0.96 m3/tonne FFB.

The level of water usage was within the industrial norm with respect to the mill size and capacity.

Complied

Criterion 4.5

Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate Integrated Pest Management techniques.





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4.5.1 Implementation of Integrated Pest Management (IPM) plans shall be monitored.

Minor Compliance

Records on planting of beneficial plants had been verified on the estates. Trapping of Rhinoceros beetle with pheromone in addition to spraying of Blocus with a.i. Beta-cyfluthrin 2.7% w/w, when necessary, had been carried out in the immature areas of the estates.

Pest infestation was minimal on the estates.

Programme for planting of beneficial plants such as Turnera subulata, Cassia cobanensis, and Antigonon leptopus, and records on areas planted had been verified together with the respective maps to be satisfactory.

Complied

4.5.2 Training of those involved in IPM implementation shall be demonstrated.

Minor Compliance

Training records for staff on IPM implementation were available and was verified on-site to be satisfactory during field assessment.

Complied

Criterion 4.6

Pesticides are used in ways that do not endanger health or the environment


4.6.1 Justification of all pesticides used shall be demonstrated. The use of selective products that are specific to the target pest, weed or disease and which have minimal effect on non-target species shall be used where available.

Major Compliance

Written justification in Standard Operating Procedures of all agrochemicals use had been reviewed and found acceptable.

Complied

4.6.2 Records of pesticides use (including active ingredients used and their LD50, area treated, amount of active ingredients applied per ha and number of applications) shall be provided.

Major Compliance

Records of pesticides and their active ingredients used, LD50, area treated, amount of a.i. applied per ha, and number of applications had been maintained and kept for a minimum of 5 years. Monitoring records at the Sahabat 26 and Tambisan estates sighted, with the aim to progressively reduce its dependence on pesticides to the planted areas.

However, at Sahabat 34 estate, records of pesticide usage i.e. amount applied per hectare and number of applications by the appointed contractor has not been maintained.


4.6.3 Any use of pesticides shall be minimised as part of a plan, and in accordance with Integrated Pest Management (IPM) plans. There shall be no prophylactic use of pesticides, except in specific situations identified in national Best Practice guidelines.

Major Compliance

It had been the policy of the estates to minimize the use of pesticides in accordance with integrated pest management. No prophylactic use of pesticides had been carried out at the estates for the period concerned.

Complied

4.6.4 Pesticides that are categorised as World Health Organisation Class 1A or 1B, or that are listed by the Stockholm or Rotterdam Conventions, and paraquat, are not used, except in specific situations identified in national Best Practice guidelines. The use of such pesticides shall be minimised and eliminated as part of a plan, and shall only be used in exceptional circumstances.

It is the policy of the group to reduce the use of Paraquat gradually and achieve zero usage eventually.

It was noted that the paraquat usage records at the sampled estates had been decreasing over the past 6 months till present.

Complied




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Major Compliance

4.6.5 Pesticides shall only be handled, used or applied by persons who have completed the necessary training and shall always be applied in accordance with the product label. Appropriate safety and application equipment shall be provided and used. All precautions attached to the products shall be properly observed, applied, and understood by workers (see Criterion 4.7).

Major Compliance

All pesticide operators had been given training on the handling and application of the pesticides, including the operational techniques on spraying equipments.

Appropriate safety and application equipment had been provided and used by the operators. First aid kits brought along to the field & verified.

All precautions attached to the products had been observed, applied, and understood by the workers. Records maintained whenever pesticides issued for use.

The PMU has adequate facilities for mixing of pesticides and cleaning up after work. Signage of precaution of wearing PPE displayed. There are designated storage areas for PPE.

Programme and training records had been verified to be satisfactory.

Complied

4.6.6 Storage of all pesticides shall be according to recognised best practices. All pesticide containers shall be properly disposed of and not used for other purposes (see Criterion 5.3).

Major Compliance

Storage of pesticides found to be in accordance with the Occupational Safety and Health Laws and Regulations and local laws on pesticides control.

Empty chemical containers had been used for mixing chemicals for spraying pesticides in the field.

Balance of remaining pesticides solution were kept in the identified containers, & stored within a secure, locked area.

Used chemical containers were disposed by DOE approved/registered hazardous waste contractor.

Complied

4.6.7 Application of pesticides shall be by proven methods that minimise risk and impacts.

Major Compliance

Pesticides had been applied using the proven methods (Best Management Practices) that minimize risk and impacts.

Complied

4.6.8 Pesticides shall be applied aerially only where there is documented justification. Communities shall be informed of impending aerial pesticide applications with all relevant information within reasonable time prior to application.

Major Compliance

It’s not the policy of the company to carry out aerial application of pesticides. This policy has been adhered.

Complied

4.6.9 Maintenance of employee and associated smallholder knowledge and skills on pesticide handling shall be demonstrated; including provision of appropriate information materials (see Criterion 4.8).

Major Compliance

Periodic training on pesticide handling had been carried out for the workers.

Information on the pesticides displayed on the notice board and next to the pesticides in the store.

Complied

4.6.10 Proper disposal of waste material, according to procedures that are fully understood by workers and managers shall be demonstrated (see Criterion 5.3).

Major Compliance

Empty pesticide containers had been used for mixing chemical for spraying in the fields. Scheduled waste of palm oil mill had been disposes of through licensed contractor approved by DOE. Records of scheduled waste involved at the mill had been verified to be satisfactory.

Complied




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4.6.11 Specific annual medical surveillance for pesticide operators, and documented action to treat related health conditions, shall be demonstrated.

Major Compliance

Annual medical surveillance for pesticide operators had been implemented as follows:

POM has sent 8 workers for medical surveillance on Feb 2014. FASSB Tambisan estate has sent 6 of its workers for medical surveillance on March 2014.

Based on the reports, it was verified that there were no significant health issues and the workers were still found fit for their designated work.

Several pesticide operators interviewed, & they did not have skin disorders or rashes, mouth and throat pain, breathing difficulties or nail problems. It was verified that there were no classical symptoms of toxic reactions due to work with pesticides.

However, annual medical surveillance had not been conducted for the contracted pesticide sprayers at Sahabat #26 & #34 estates.


4.6.12 No work with pesticides shall be undertaken by pregnant or breast-feeding women.

Major Compliance

Verified from records, field inspections and interviews that no pregnant or breast-feeding woman had been offered work as pesticide operator. This was also verified during the on-site field inspections.

Complied

Criterion 4.7

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


The health and safety plan shall cover the following:

4.7.1 A health and safety policy shall be in place. A health and safety plan covering all activities shall be documented and implemented, and its effectiveness monitored.

Major Compliance

Occupational Safety and Health (OSH) plan in compliance with OSH Act and Factory Machinery Act was documented and implemented.

OSH policy was clearly displayed at POM and in estates office. Workers and scheme smallholders had demonstrated awareness towards occupational safety and health policy.

The Safety & Health officer was responsible for overall in charge of safety and health training, planning, operation & coordination.

POM & its estates established their accident reporting KPI, and incident monitoring implemented.

Risk assessment carried out on all operations where health and safety is an issue (e.g. noise exposure, pesticides/ chemicals exposure, accident, fire).

Procedures and actions documented and implemented on the issues concerned.

Awareness and training programmes planned for year 2013/2014 was consistently implemented. Evidence of training on safe working practices for workers involved in pesticides spray, use of fire extinguishers, awareness & understanding of MSDS/CSDS.

Precautions attached to products properly observed and applied to workers in all estates.

Appropriate PPE (safety boots, safety helmets, rubber boots, cartridge masks, safety goggles, gloves) verified to be provided.

Ear mufflers and ear plugs were seen to be worn by




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workers exposed to high noise levels such as in the engine room of POM (> 85 db limit). Confirmed that annual audiometric test conducted for the listed mill workers with evidence of records. Workers were interviewed & found not suffering any significant hearing problem. Baseline audiogram and occupational and medical history records of workers maintained. Monitoring carried out by the Safety & Health Officer for any significant hearing loss.

Company had provided appropriate PPE at the place of work to cover all potentially hazardous operations such as pesticides application, and harvesting.

Adequate fire extinguishers found to be located at strategic locations, operational and maintained in good conditions.

At Sahabat 26 estate, 2 contractor workers under the FFB tractor drivers were not wearing of safety PPE not consistent. Safety kits not available or maintained. Understanding of training and handling of pesticides was not adequate. Training records of field workers has not been maintained.


4.7.2 All operations where health and safety is an issue shall be risk assessed, and procedures and actions shall be documented and implemented to address the identified issues. All precautions attached to products shall be properly observed and applied to the workers.

Major Compliance

All operations had been risk assessed, documented and implemented.

All precautions attached to the products had been observed and applied to the workers through MSDS.

Complied

4.7.3 All workers involved in the operation shall be adequately trained in safe working practices (see Criterion 4.8). Adequate and appropriate protective equipment shall be available to all workers at the place of work to cover all potentially hazardous operations, such as pesticide application, machine operations, and land preparation, harvesting and, if it is used, burning.

Major Compliance

Awareness and training programme had been carried out.

All workers involved had been adequately trained in safe working practices.

Appropriate PPE had been provided to all workers at the place of work to cover all potentially hazardous operations.

The implementation was verified to be maintained during the on-site field inspections, and found those PPE was well maintained & operational (non faulty).

Complied

4.7.4 The responsible person/persons shall be identified. There shall be records of regular meetings between the responsible person/s and workers. Concerns of all parties about health, safety and welfare shall be discussed at these meetings, and any issues raised shall be recorded.

Major Compliance

The responsible person (usually the Mandore or Headman) had been identified.

Records of regular meetings between the responsible person and workers to discuss about health and safety had been verified to be satisfactory.

Complied

4.7.5 Accident and emergency procedures shall exist and instructions shall be clearly understood by all workers. Accident procedures shall be available in the appropriate language of the workforce. Assigned operatives trained in First

Accident and emergency procedures had been written and briefed to staff, workers, contractors and visitors.

Workers trained in First Aid were present in the mill

Complied




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Aid should be present in both field and other operations, and first aid equipment shall be available at worksites. Records of all accidents shall be kept and periodically reviewed.

Major Compliance

and field operations.

First Aid Kits were available at worksites.

Records on all accidents had been verified to be maintained satisfactorily.

Quarterly review on accident cases had been carried out during quarterly meeting of Environment, Safety, & Health (ESH)

4.7.6 All workers shall be provided with medical care and covered by accident insurance.

Major Compliance

Medical care had been provided to all the workers.

Local workers are covered by SOCSO, whereas foreign workers of the Group Estates are covered by Foreign Workers Compensation Scheme with ETIQA Takaful Bhd. insurance company.

Complied

4.7.7 Occupational injuries shall be recorded using Lost Time Accident (LTA) metrics

Major Compliance

Records on Lost Time Accident (LTA) metrics had been verified to be satisfactory maintained.

Complied

Criterion 4.8

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


4.8.1 A formal training programme shall be in place that covers all aspects of the RSPO Principles and Criteria, and that includes regular assessments of training needs and documentation of the programme.

Major Compliance

A formal training programme on all aspects of RSPO Principles and Criteria has been established and implemented.

Training for various categories of mill operators and field workers with regards to their duties and training needs were documented and reviewed.

Complied

4.8.2 Records of training for each employee shall be maintained.

Major Compliance

Training records for workers at the POM was satisfactorily maintained. However, records of training and briefings provided to the field workers has not been adequately maintained at the estate offices of Sahabat 26 and Sahabat 34 estates.


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 continual improvement.


5.1.1 An environmental impact assessment (EIA) shall be documented.

Major Compliance

Environmental impact assessment were done and documented for the whole of Sahabat Group by the HQ. Approval by the Jabatan Perlindungan Alam Sekitar was issued on 19th June 2012 vide reference no: JPAS/PP/11/600-1/11/1/115.

In addition, Environmental Aspect and Impacts Assessment were also conducted. The assessment documents had included the identification of aspects from field activities that includes fertilizing, spraying, transportation of FFB, garbage disposal and also road maintenance. The report had also included the action plans and recommendations to mitigate the negative effects and to promote the

Complied




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positive ones such as construction of sewage and landfills, together with other conservation activities applicable to the PMU.

5.1.2 Where the identification of impacts requires changes in current practices, in order to mitigate negative effects, a timetable for change shall be developed and implemented within a comprehensive management plan. The management plan shall identify the responsible person/persons.

Major / Minor -TBF

There were no major changes to the identified impacts since the establishment of the documents above.

The Management plan for mitigation of environmental impacts, timeframe for action and responsible persons were not adequately followed up the Estate managers at the PMU. For instance at the Sahabat 26 estate, the buffer zone signage was placed for water pond for supply to the POM. However the extent of the boundary is not clearly demarcated. It is evidence that clear demarcation was also not done at the pond at Sahabat 34 estate.

Although there are 3 man-made ponds in Sahabat 59 for water supply to the PMU, these ponds were adequately managed and closely monitored for the research purposes. Soil cover vegetation was planted along the banks to mitigate erosion.

Minor NC 8/14

5.1.3 This plan shall incorporate a monitoring protocol, adaptive to operational changes, which shall be implemented to monitor the effectiveness of the mitigation measures. The plan shall be reviewed as a minimum every two years to reflect the results of monitoring and where there are operational changes that may have positive and negative environmental impacts.

Major / Minor -TBF

The monitoring of the documented environmental improvement plans is ongoing.

Provision for the review had considered the mitigation of negative impacts and promotion of positive ones such as the proper identification of buffer zone, clearing of overgrown natural vegetation and debris along the streams

Implementation and monitoring of the documented environmental improvement plans were reviewed on an annual basis. Environmental aspect & impact assessment (ref: FPI/L4/QOHSE-1.7 & FPI/L4/QOHSE-1.8, dated 1 May 2014) should include monitoring of domestic waste, & methane gas emitted from palm oil mill operation. Environmental aspect & impact assessment report filed at Sahabat S#59 (Tambisan) should include monitoring of diesel container, & potential spillage of diesel at gen-set areas (inside estate).

OBS 4.

Criterion 5.2

The status of rare, threatened or endangered species and other High Conservation Value habitats, if any, that exist in the plantation or that could be affected by plantation or mill management, shall be identified and operations managed to best ensure that they are maintained and/or enhanced.


5.2.1 Information shall be collated in a High Conservation Value (HCV) assessment that includes both the planted area itself and relevant wider landscape-level considerations (such as wildlife corridors).

Major Compliance

Information has been collated in a HCV assessment conducted by a consultancy company, Aksenta dated 23 march 2014. The exercise has taken into consideration all aspect of the environmentally sensitive areas such as ponds, streams, wildlife boundaries and were documented.

The Sahabat 26, 34 and Sahabat Tambisan (59)




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PMU estates visited are surrounded by palm oil estates. There are no neighbouring forest reserves to the PMU. Based on the review, there was no HCV area identified at these PMUs.

Note: In the absence of HCVs, conservation areas i.e. buffer zones around ponds and along the stretches of streams which pass through the Sahabat 26, Sahabat 34 and Sahabat 59 PMU estates were identified.

The Sahabat 59 estate has identified an area (Block 5C) which is considered not productive for the production of oil palm. Therefore a separate management regime should be implemented in order to preserve the area.

OBS 5.

5.2.2 Where rare, threatened or endangered (RTE) species, or HCVs, are present or are affected by plantation or mill operations, appropriate measures that are expected to maintain and/or enhance them shall be implemented through a management plan.

Major Compliance

Regular patrols within the POM and PMU were being carried out and findings recorded by the respective Estate executives to monitor the Conservation / buffer zone areas.

The occasional sightings of various types of wildlife encountered were found to have been recorded.

Monitoring and control of any illegal hunting, fishing or collecting activities was also implemented. Large signages that prohibit hunting, fishing and water polluting activities were verified on-site at all PMUs visited i.e. Sahabat 26, Sahabat 34, Sahabat 59 and found to have been satisfactorily maintained.

Complied

5.2.3 There shall be a programme to regularly educate the workforce about the status of these RTE species, and appropriate disciplinary measures shall be instigated in accordance with company rules and national law if any individual working for the company is found to capture, harm, collect or kill these species.

Major Compliance

The program to regularly educate the workforce and community about the status of these RTE species are also established with ongoing consultation with the relevant authorities at the Hamparan Budi group.

There is evidence of commitment to discourage any illegal or inappropriate hunting, fishing or collecting activities via the signage erected around the affected areas which prohibit such activities.

Complied

5.2.4 Where a management plan has been created there shall be ongoing monitoring:

• The status of HCV and RTE species that are affected by plantation or mill operations shall be documented and reported;

• Outcomes of monitoring shall be fed back into the management plan.

Major / Minor -TBF

Management plans were established and monitoring outcomes were reviewed by the Estate managers. There are no HCV or reported RTE at the Sahabat 26, 34 and 59 PMUs, Verification were made during on-site assessment and found to be satisfactory.

Ongoing monitoring of the overall management plan on the status of any HCV and / or RTE species at the overall Hamparan Badai plantation areas is collated and reviewed by the HQ Sustainability team for the PMUs in the region.

Complied

5.2.5 Where HCV set-asides with existing rights of local communities have been identified, there shall be evidence of a negotiated agreement that optimally safeguards both the HCVs and these rights.

Major / Minor -TBF

It is verified that there has been no instance of HCV set-aside that conflicts with the rights of local communities at the PMUs visited i.e. Sahabat 26, 34 and 59. Thus negotiated agreement of such nature is not applicable.

Complied

Criterion 5.3




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


5.3.1 All waste products and sources of pollution shall be identified and documented.

Major Compliance

Visits made to POM and PMU Sahabat 26, 34 and 59 showed that all waste products and sources of pollution were identified and documented.

The documentation and identification of all the waste products such as scheduled waste, domestic waste , clinical waste and recyclable waste such as metal, plastic, mill waste and polluting materials e g. EFB, POME, Stack emissions and Boiler ashes were maintained and monitored at the POM.

The mill and estates also have a proper Scheduled Waste Store for storing scheduled waste until time of disposal by DOE authorized waste disposal contractors e.g. Petrojadi Sdn Bhd.

Scheduled Waste identified included spent hydraulic oil (SW 305), spent lubricant oil (SW 306), used chemical containers/drums (SW 409), used filters (SW 410) , clinical waste (SW 404) and used batteries (SW 102).

Appropriate secondary containment for the diesel skid tanks, chemical and scheduled waste storage areas was verified to be maintained.

Segregation of wastes i.e. general wastes and scheduled wastes was verified to be satisfactory. Proper storage areas were identified for the storage of the recyclable wastes at the estates and mill.

Complied

5.3.2 All chemicals and their containers shall be disposed of responsibly.

Major / Minor -TBF

The disposal of used chemicals and containers were done accordingly to their schedule on waste management as planned.

Scheduled waste stores inspected at audited sites and disposal was done by scheduled waste disposal company authorized and licensed by Department of Environment.

However, while performing visit at Sahabat #34 estate, scheduled wastes (used battery, used engine oil) were left inside a locked store, & there was no plan for proper disposal.

Minor NC- 9/14

5.3.3 A waste management and disposal plan to avoid or reduce pollution shall be documented and implemented.

Major / Minor -TBF

The waste management and disposal plan were in place at both the POM and PMU. It has been documented and implemented as required and is being carried out responsibly.

Waste disposal was done by an appointed contractor that is licensed by the Department of Environment.

The solid waste management and disposal plan using landfills was available at the mill and estates.

The designated landfill area at Sahabat 59 were verified to be at least more than 500 m away from any streams / water sources /residential area -thus minimizing the risk of contamination of contamination of water sources.

Recycling of crop residues / biomass i.e. EFB and




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POME had been implemented. Management EFB application plans and progress reports were verified to be satisfactory.

Recycling bins of three different colour codes for specific recycle waste were available in the POM and estates and were used for solid waste segregation and recycling.

At the POM, it was discovered that the waste materials at the dumpsite/landfill was not segregated between the organic and inorganic waste such as mixing of metals, plastic and rubber waste together. No proper signage was erected. At the Sahabat 26 and 34 estates, there was no proper management planned for the disposal of the domestic waste.

Minor NC- 10/14

Criterion 5.4

Efficiency of fossil fuel use and the use of renewable energy is optimised.


5.4.1 A plan for improving efficiency of the use of fossil fuels and to optimise renewable energy shall be in place and monitored.

Minor Compliance

Monthly record on energy consumption for both renewable and non renewable sources were kept and documented. It is monitored to optimise use of renewable energy. Data is being compiled for comparison and control for future improvement.

Visit to Hamparan Badai mill is evident that they are compiling the data, document it for further action to improve on their efficiency of using the renewable and non renewable energy.

Apart from use of diesel for electricity, electricity were generated through steam turbine and boiler where Palm fiber and palm kernel shells were used as renewable energy/fuel.

The recording and monitoring on the usage of water from the existing pond for use in the mill can be further improved.

OBS 6.

Criterion 5.5

Use of fire for preparing land or replanting is avoided, except in specific situations as identified in the ASEAN guidelines or other regional best practice.


5.5.1 There shall be no land preparation by burning, other than in specific situations as identified in the ‘Guidelines for the Implementation of the ASEAN Policy on Zero Burning’ 2003, or comparable guidelines in other regions.

Major Compliance

The Group policy of ‘Zero open burning’ is enforced since July 2011. Both the POM (Hamparan Badai) and PMUs had observed the policy of ‘Zero open burning’ for any replanting, as well as at the estates.

However, there are no replanting activities at all the PMUs visited.

Complied

5.5.2 Where fire has been used for preparing land for replanting, there shall be evidence of prior approval of the controlled burning as specified in ‘Guidelines for the Implementation of the ASEAN Policy on Zero Burning’ 2003, or comparable guidelines in other regions.

The PMUs shall adhere to the ‘zero burning ‘policy for replanting at the estates.

Also, there was no evidence of any burning of domestic waste at the housing line sites and at the sanitary landfills of the estates during on site field assessment. Sanitary landfills were located at

Complied




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Minor Compliance Sahabat 59. The area is located far away from the village and water sources.

Criterion 5.6

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


5.6.1 An assessment of all polluting activities shall be conducted, including gaseous emissions; particulate/soot emissions and effluent (see Criterion 4.4).

Major Compliance

The POM and PMU had reviewed the environmental impact assessment on potential pollution to water, gaseous emissions to air and contamination on land.

Monitoring of mill gas emissions is being done online using the Continuous Emissions Monitoring System (CEMS). It is evident that the emission is within the permissible limits of DOE as verified during the on site visit to the POM.

Boilers are equipped with smoke density monitors and recorder control equipment and safety latches to doors.

Smoke Observation Chart is maintained as a backup for the CEMS monitoring by DOE.

POME treatment, monitoring and land application is monitored, maintained and adhered to DOE regulations.

Complied

5.6.2 Significant pollutants and greenhouse gas (GHG) emissions shall be identified, and plans to reduce or minimise them implemented.

Major / Minor -TBF

Identification of significant pollutants and greenhouse gas (GHG) emissions has been done. e.g. POME, diesel / fuel and fertilizer. Their usage have been recorded and documented at both the POM and PMU.

However the plans to further reduce or minimise GHG emissions are still yet to be established and implemented. Thus an observation is issued for further monitoring plans for reduction of GHG emissions at the PMU. This will be followed up during the next surveillance.

OBS 7.

New RSPO P&C (2013) requirement. To follow up during next Surveillance.

5.6.3 A monitoring system shall be in place, with regular reporting on progress for these significant pollutants and emissions from estate and mill operations, using appropriate tools.

Major / Minor -TBF

Monitoring and reporting of the significant pollutants to water, gaseous emissions to air and contamination on land are in place..

Tools and systems used include the DOE online CEMS monitoring for air emissions, water quality at discharge points as per DID regulations and SW disposal were adhering to DOE requirements

Water samples were regularly taken every six months and tested by mill environment officer in charge and analyzed to ensure compliance to DOE requirements at final discharge points The water samples were sent to Felda Analytical Laboratory for analysis.

Records are maintained and verified on-site to have met the permissible regulatory limits.

Complied




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Principle 6: Responsible consideration of employees, and of individuals and communities affected by growers and mills

Criterion 6.1

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


6.1.1 A social impact assessment (SIA) including records of meetings shall be documented.

Major Compliance

Information that was obtained from various stakeholders through consultation meetings and though feedback form. The stakeholders included contractors, villagers, workers, teachers, police, fire department personnel etc. The gathering of information was carried out over several days. Records such as attendance lists, Borang Soal Selidik Stakeholder and management action plans.

Complied

6.1.2 There shall be evidence that the assessment has been done with the participation of affected parties.

Minor Compliance

The information gathered from the stakeholders was analysed and management action plans were established. Participants included staff, suppliers, contractors. Lists of the participants at the assessments were maintained as records.

Complied

6.1.3 Plans for avoidance or mitigation of negative impacts and promotion of the positive ones, and monitoring of impacts identified, shall be developed in consultation with the affected parties, documented and timetabled, including responsibilities for implementation.

Major / Minor -TBF

The management action plans for avoidance or mitigation of negative impacts and promotion of the positive ones such as the continued monitoring of damaged roads and buildings, reducing the impact of external negative elements on the young were identified. These were implemented and monitored.

The social impact assessments that the management of Palm Oil Mill, Sahabat 26, Sahabat 34 and Sahabat 59 had conducted & identified areas where negative impacts are to be avoided or mitigated and positive ones are promoted. However, there was no evidence that these identified impacts had been monitored.

Minor NC-11/14

6.1.4 The plans shall be reviewed as a minimum once every two years and updated as necessary, in those cases where the review has concluded that changes should be made to current practices.

There shall be evidence that the review includes the participation of affected parties.

Major / Minor -TBF

The management had not reviewed the management plans as it considered the implementation was still in early stages.

Complied

6.1.5 Particular attention shall be paid to the impacts of smallholder schemes (where the plantation includes such a scheme).

Major / Minor -TBF

Positive impacts such as increased work opportunities, increased income and improved living standards are identified. However, there was no smallholder scheme managed at this PMU.

Complied

Criterion 6.2

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





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6.2.1 Consultation and communication procedures shall be documented.

Major Compliance

Documented policies and procedures are available for internal and external communication and consultation.

Complied

6.2.2 A management official responsible for these issues shall be nominated.

Minor Compliance

Organisation charts in all PMUs visited show that different responsible persons are nominated for different sectors of stakeholders. Interviews with a few of these responsible persons verified the understanding of their roles and responsibilities.

However, there was no evidence found in Sahabat 34 and 59 Estates that a management official responsible for social issues has been nominated.

Minor NC- 12/14

6.2.3 A list of stakeholders, records of all communication, including confirmation of receipt and that effort are made to ensure understanding by affected parties, and records of actions taken in response to input from stakeholders, shall be maintained.

Minor Compliance

List of stakeholders are sighted. The stakeholders lists included Government Departments and Agencies, statutory bodies, NGOs, contractors, suppliers, villagers, teachers.

Noted that there are open and transparent methods for communication and consultation which has taken into consideration the local conditions including migrant workers and job opportunities for local people. Verified that consultations with various stakeholders had been held and recorded in the minutes of meeting that include actions taken in response to input from stakeholders.

Complied

Criterion 6.3

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


6.3.1 The system, open to all affected parties, shall resolve disputes in an effective, timely and appropriate manner, ensuring anonymity of complainants and whistleblowers, where requested.

Major Compliance

The PMU has an established and documented system for dealing with complaints and grievances. Policies and procedures implemented included ‘Whistle Blowing Policy, Polisi Pemberian Maklumat and Prosedur Menangani Aduan Dan Rungutan’. The procedure concerned complaints, grievances and whistle blower.

The ‘Rekod Aduan Kakitangan Dan Penduduk Setempat and Buku Rekod Aduan’ were available for the staff and workers to register their grievances and complaints.

Complied

6.3.2 Documentation of both the process by which a dispute was resolved and the outcome shall be available.

Minor

Complaints and grievances are handled by respective Estate Managers. The record books used for registering complaint or making a request for maintenance showed that actions were taken until resolutions with the complainant.

Complied

Criterion 6.4

Any negotiations concerning compensation for loss of legal, customary or user 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 A procedure for identifying legal, customary or user rights, and a procedure for identifying people entitled

The PMU has a documented procedure for identifying legal and customary rights and procedure for identifying people entitled to compensation have been maintained as per

Complied




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to compensation, shall be in place.

Major Compliance

Group Reference Procedure is ML-1A/L2-PR12(0).

There was no record of any dispute over lands that were adjacent to villages or native land or other parties. It was verified there was no case requiring any negotiation or compensation pertaining to these criteria.

6.4.2 A procedure for calculating and distributing fair compensation (monetary or otherwise) shall be established and implemented, monitored and evaluated in a participatory way, and corrective actions taken as a result of this evaluation. This procedure shall take into account: gender differences in the power to claim rights, ownership and access to land; differences of transmigrants and long-established communities; and differences in ethnic groups’ proof of legal versus communal ownership of land.

Minor Compliance

There is a procedure for calculating and distributing compensation. To date, there has been no dispute by any parties relating to legal, customary or user rights at the PMU.

Complied

6.4.3 The process and outcome of any negotiated agreements and compensation claims shall be documented, with evidence of the participation of affected parties, and made publicly available.

Minor Compliance

At the time of audit, there were no borders which were directly adjacent to any villages or native land in the PMU. The PMU operations in Sabah are based on approval from state government through “Warta Kerajaan Negeri Sabah”, No. 148 and 223 in 1979. Therefore, no cases requiring any negotiation or compensation pertaining to these criteria.

Complied

Criterion 6.5

Pay and conditions for employees and for contract workers always meet at least legal or industry minimum standards and are sufficient to provide decent living wages.


6.5.1 Documentation of pay and conditions shall be available.

Major Compliance

Labour policy is documented and publicly available. Labour policy addresses migrant workers who come from Indonesia and the Phillipines. Employment conditions meet legal requirement.

Employment agreements, stating all statutory fringe benefits and eligible incentives are available as terms and conditions of employment, codes of ethics and proper behaviour.

Stated conditions in the employment agreement includes working hours, overtime, leave and medical benefits, maternity leave for women, insurance coverage, deductions, resignation notice period, company rules, etc., which are in compliance with applicable legal requirements.

The payment slip was easy to understand. Foreign workers are legally employed directly and work permits were available and verified to be satisfactory.

The PMU has implemented the Minimum Wage Order 2012 consistent with policy, for all its employees.

Offer letter, employment agreements with applicable terms and conditions and accompanying appendices conditions are documented in Bahasa Malaysia and have been explained to and understood by the employees and settlers.

The PMU also provides housing and piped water supply, electricity, medical benefits, mosques, and welfare

Complied




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amenities that in overall constitutes a decent living for the employees.

The documented pay and conditions are verified to be satisfactorily implemented. Pay and conditions documented in the employment contract.

6.5.2 Labour 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.) shall be available in the languages understood by the workers or explained carefully to them by a management official.

Minor Compliance

Documented employment contract verified for migrant workers had covered all issue such as working hours, deductions, overtime, sickness, holiday entitlement, maternity leave, and reasons for dismissal, period of notice made available in Bahasa Malaysia which is understood by the workers (local and foreign workers)

Complied

6.5.3 Growers and millers shall provide adequate housing, water supplies, medical, educational and welfare amenities to national standards or above, where no such public facilities are available or accessible.

Minor Compliance

The estate management was noted to have complied with Workers’ Minimum Standard of Housing and Amenities Act 1990 (Act 446).

Site visits to workers’ homes and interviews with their dependents revealed their general satisfaction with their housing conditions and amenities.

Housing, electricity and water supply

The employees staying in the estate are provided with 24-hour electricity supply.

Clean water supply comes from treated water which is supplied to the living quarters.

Schools

The workers’ children had received free education in the PMU.

Children of Indonesian workers attended school under Indonesian curriculum with three Indonesian teachers. One of the teachers since 2008 at PKBM AlFirdaus, Hamparan Badai, had expressed satisfaction with the facilities provided.

Sundry shops

The availability of sundry shops within the estates which helped the staff and workers get their sundries nearby. From interviews with the workers in PMU it was found that most household sundries, including frozen foodstuffs were available on sale. Fresh food, such as fish, chicken, vegetable and meat are brought in by fresh food suppliers into the estates in food trucks at regular interval.

Medical clinics

There are clinics operated by private practitioners. There is also rural health clinic within the estate.

Complied

6.5.4 Growers and millers shall make demonstrable efforts to monitor and improve workers’ access to adequate, sufficient and affordable food.

Minor Compliance

Sundry shops and other facilities are available in the vicinity of the PMUs, e.g. banks, petrol station, fresh market, night market, restaurants and other eating places, money transfer service. At the workers linesites located in the estates, food trucks brought in fresh food supply, e.g. meat, chicken, fish, vegetable, almost every day.

Complied




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Criterion 6.6

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


6.6.1 A published statement in local languages recognising freedom of association shall be available.

Major / Minor -TBF

The published statements of policy “ Polisi Kebebasan menganggotai Kesatuan/Khidmatan Sukarela with reference no. ML-1A/L2-P08(0) dated 28th June 2011 which recognized the employee’s freedom of association, was found to be available and widely displayed in all notice boards of the PMU.

Complied

6.6.2 Minutes of meetings with main trade unions or workers representatives shall be documented.

Major Compliance

The minutes of the meetings between the Kesatuan Pekerja-pekerja and the management were conducted had noted that matters relating to work environment, membership, medical benefits, disabled person needs etc. were deliberated.

Complied

Criterion 6.7

Children are not employed or exploited.


6.7.1 There shall be documentary evidence that minimum age requirements are met.

Major Compliance

The PMU has a policy of not employing child labor i.e. persons below 17 years old in accordance with Employment Act 265 as evidenced in “Polisi Pekerja Kanak-kanak” dated 20th January 2010. This policy is displayed at strategic public places.

The birth date in the Identification card was used as the verification for age. The implementation was verified through checks on ‘Senarai Maklumat Petugas Ladang’.

Complied

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 including identification of relevant/affected groups in the local environment shall be documented.

Major Compliance

The PMU has a publicly displayed documented policy on equal opportunities “Polisi Kesetaraan Peluang” which is dated 20th December 2010. The policy stressed on non-discrimination based on race, caste, nationality, religion, gender, sexual orientation, disability, and union/political affiliations. However, positive discrimination for the benefit of certain society groups may be allowed after consultation.

Complied

6.8.2 Evidence shall be provided that employees and groups including local communities, women, and migrant workers have not been discriminated against.

Minor Compliance

There is a documented policy on foreign workers “Polisi Pengambilan Pekerja Asing” dated 20th December 2010. It is publicly displayed along with other policies at strategic places.

Local workers are covered under SOCSO scheme and the migrant workers are covered under Foreign Workers Compensation scheme (FWCS).

Interviews with migrant workers’ dependents revealed their

Complied




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satisfaction with the PMU for job opportunities and they enjoy all common welfare amenities like rent-free housing, water and electricity supplies, medical care, and transportation of school children. They are aware of the “aduan” mechanism by which they can make any complain or request to the management.

6.8.3 It shall be demonstrated that recruitment selection, hiring and promotion are based on skills, capabilities, qualities, and medical fitness necessary for the jobs available.

Major / Minor -TBF

Depending on the nature of work positions, The PMU management takes into considerations the needs for technical qualifications/experience and related skills in recruitment selection, hiring and promotion exercises.

A verification of job advertisement and related records evidenced that a recent employment of a oil mill worker and was carried out in a non-discriminative manner. The necessary qualifications and conditions were clearly stated in the job advertisement.

Complied

Criterion 6.9

There is no harassment or abuse in the work place, and reproductive rights are protected.


6.9.1 A policy to prevent sexual and all other forms of harassment and violence shall be implemented and communicated to all levels of the workforce.

Major Compliance

A documented policy to prevent sexual harassment and violence is available and publicly displayed, i.e. “Polisi Gangguan Seksual Dan Keganasan”, dated 28 Jun. 2011 signed by Felda’s Managing Director (Pengarah Besar).

Records of awareness and implementation of following policy and procedure and communication of such policy or procedure were not adequately maintained e.g. for Sexual harassment; Lodging of complaints and Prohibition of handling chemicals for female workers and pregnant workers.

Major NC- 13/14

6.9.2 A policy to protect the reproductive rights of all, especially of women, shall be implemented and communicated to all levels of the workforce.

Major Compliance

The establishment of The PMU’s commitment to protect the reproductive rights and rights to have a family of the workers.

Local female staff is fully aware that they are entitled for two months paid maternity leave.

Notice was issued to inform that women field workers were prohibited from handling agrochemicals. It was verified that there was no pregnant or breastfeeding woman workers handling agrochemicals.

Complied

6.9.3 A specific grievance mechanism which respects anonymity and protects complainants where requested shall be established, implemented, and communicated to all levels of the workforce.

Major / Minor -TBF

Complaint and grievance procedures “Prosedur Menangani Aduan dan Rungutan” and “Polisi Pemberian Maklumat [whistleblowing]” are available to manage grievances and complaints from internal and external stakeholders.

Management of the PMUs confirmed that there has been no report of sexual harassment received until the date of the audit.

Complied

Criterion 6.10

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


6.10.1 Current and past prices paid for Fresh Fruit Bunches (FFB) shall be

Onsite audit verified that the current and past prices paid for FFB pricing were displayed at the Mill and Estate offices.

Complied




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publicly available.

Major Compliance

Price paid per delivery is also stated in each truck delivery slip issued by the mill as reference.

6.10.2 Evidence shall be available that growers/millers have explained FFB pricing, and pricing mechanisms for FFB and inputs/services shall be documented (where these are under the control of the mill or plantation).

Major / Minor -TBF

FFB prices were made available via POM office’s external Notice Board and mill office records. The POM has treated out-growers and other local business fairly.

Pricing mechanism for FFB is fair and transparent. Price of FFB was set based on MPOB approved online price at http://bepi.mpob.gov.my/index.php/statistics/price/daily.html. FFB was also graded by licensed graders based on MPOB specification. Training attended and results of the test taken by the licensed graders at the POM were verified.

Complied

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

Minor Compliance

Stakeholder interviews conducted during this assessment with suppliers, contractors, and relevant parties including local and foreign workers confirmed that understand the contractual agreements (such as terms and payment) they enter into with the PMUs. They also consider the business transactions as fair and transparent.

Complied

6.10.4 Agreed payments shall be made in a timely manner.

Minor Compliance

Agreed payments are made promptly within the 30 days of the following month. Through stakeholder consultation conducted, there is no evidence to suggest of any unfair business practices with the local businesses.

Complied

Criterion 6.11

Growers and millers contribute to local sustainable development where appropriate.


6.11.1 Contributions to local development that are based on the results of consultation with local communities shall be demonstrated.

Minor Compliance

The PMU’s contribution towards local communities had been evidenced in several social areas and verified during on site visit as follows:

• The PMU provided free water and electricity supplies workers linesite.

• The PMU provided land for the building of government kindergarten, primary, secondary and religious schools. This is also true for government managed health clinic and school for children with special requirements.

• Free transportation to local and foreign workers children to go to schools daily.

• Free Quran reciting lessons for local and foreign workers children at certain night in a week.

• Donations to schools in the vicinity of the PMU.

• Annual allowance for primary and secondary school children with parents working at the PMU.

Complied

6.11.2 Where there are scheme smallholders, there shall be evidence that efforts and/or resources have been allocated to improve smallholder productivity

Major / Minor -TBF.

It was verified that there were no smallholder scheme programs at this PMU grouping estates.

NA

Criterion 6.12

No forms of forced or trafficked labour are used.




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6.12.1 There shall be evidence that no forms of forced or trafficked labour are used.

Major / Minor -TBF

Audit of employment records such as work permits in an estate office confirmed that all migrant workers were recruited through legal means and according to the regulatory requirements.

Interviews with migrant workers and their dependents in the housing are confirmed that there were no forced or trafficked labors.

Complied

6.12.2 Where applicable, it shall be demonstrated that no contract substitution has occurred.

Major / Minor -TBF

There was no evidence of contract substitution and this was confirmed from interviews with workers and relevant stakeholders.

Complied

6.12.3 Where temporary or migrant workers are employed, a special labour policy and procedures shall be established and implemented.

Major / Minor -TBF

The special policy on recruitment of foreign workers, i.e. “Polisi Pengambilan Pekerja Asing”, and equal opportunities, i.e. “Polisi Kesetaraan Peluang”, are established and the implementations are verified to be satisfactory. Review on employment contracts of foreign workers also confirmed that the policies, including minimum wages have also been duly implemented.

Complied

Criterion 6.13

Growers and millers respect human rights.


6.13.1 A policy to respect human rights shall be documented and communicated to all levels of the workforce and operations (see Criteria 1.2 and 2.1).

Major / Minor -TBF


New requirement of RSPO P&C (2013) - Follow up action at next ASA.

Principle 7: Responsible development of new plantings

KKS Hamparan Badai PMU has documented procedures for this development but to date has not carried any new plantings after November 2005. Therefore, the requirements of Principle 7 are not applicable during this assessment.

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 continual improvement in key operations.


8.1.1 The action plan for continual improvement shall be implemented, based on a consideration of the main social and environmental impacts and opportunities of the grower/mill, and shall include a range of Indicators covered by these Principles and Criteria.

Major / Minor -TBF

As a minimum, these shall include, but are not

KKS Hamparan Badai Grouping had planned & progressively implemented the continual improvement activities, both in oil mill & estates.

Estate: Planned activities to reduce use of pesticides:

Increase planting of beneficial plants (Turnera subulata, Cassia cobanensis and Antigonon leptopus) along the roads.

Reduce in use of paraquat.

Estate: Planned activities for environment:

Complied




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necessarily be limited to:

• Reduction in use of pesticides(Criterion 4.6);

• Environmental impacts (Criteria 4.3, 5.1 and 5.2);

• Waste reduction (Criterion 5.3);

• Pollution and greenhouse gas (GHG) emissions (Criteria 5.6 and 7.8);

• Social impacts (Criterion 6.1);

• Optimising the yield of the supply base.

Fertilizer bags are to be recycled and empty pesticide containers to be returned to supplier. In addition, waste will also be segregated accordingly to the plastic and organic materials

Estate: Planned activities for waste reduction:

Action plans for continual improvement are also in place.

For the PMU, planning to reduce usage of pesticides by combining the operation with manual weeding of unwanted growth. Planting of more cover crops along steep slopes and streams. Fertilizer bags are to be recycled and empty pesticide containers to be returned to supplier. In addition, waste will also be segregated accordingly to the plastic and organic materials.

Reuse fertilizer bags; Return pesticide containers to suppliers; Sell off obsolete papers, steel

For the Palm oil mill,

Reduction in the usage of diesel for generator set to 6,100L every month; Reduce BOD<20mg/l to final discharge;

Reduce the use of hydraulic oil.

Estate: Planned activities for preventing pollution:

Widen width of river.

Oil mill: Planned activities

Maintain 0 incident of accident.

Increase OER & KER.

Reduce usage of diesel for generator set every month.

Reduce BOD of final discharge of effluent from oil mill.

Reduce the use of hydraulic oil.

Social

• The PMUs provide free water and electricity supplies workers linesite.

• The PMUs provide land for the building of government kindergarten, primary, secondary and religious schools. This is also true for government managed health clinic and school for children with special requirements.

• Free transportation to local and foreign workers children to go to schools daily.

• Free Quran reciting lessons for local and foreign workers children at certain night in a week.

• Donations to schools in the vicinity of the PMUs.

• Annual allowance for primary and secondary school children with parents working at the PMUs.




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3.1.1 Supply Chain Certification Standards Findings - on CPO Mill The Supply Chain model applied at KKS Hamparan Badai Grouping POM during this assessment is Module E – CPO Mills: Mass Balance (MB). Details of findings are as follows:

E.1 Documented procedures


E.1.1

The facility shall have written procedures and/or work instructions to ensure the implementation of all the elements specified in these requirements. This shall include at minimum the following:

A documented Supply Chain Procedure Doc No. FGVPM-RSPO SCCS Issue 1.0 Rev 2.0 (Effective: 1 Dec 2012) SOP for Mill RSPO Supply Chain Certification System has been established and implemented for Module E: Mass Balance (MB) system.

Complied

a) Complete and up to date procedures covering the implementation of all the elements in these requirements

All the requirements for controlling the FFB receipt, processing, sale and CPO dispatch, training and claims for Mass Balance (MB) Module for the Palm Oil Mill has been addressed in the SOP. Implementation complied with all the requirements.

Complied

b) The name of the person having overall responsibility for and authority over the implementation of these requirements and compliance with all applicable requirements. This person shall be able to demonstrate awareness of the facilities procedures for the implementation of this standard.

POM’s Mill Manager, Mr. Jabar has been appointed as the person responsible for the Supply Chain aspects of FFB receipts, processing and shipping of CPO, PK and palm products. Mill Manager and his assistance staffs demonstrated their knowledge of the RSPO Supply Chain Certification requirements for the respective areas of operations. Organization Chart and job descriptions documented.

Complied

E.1.2

The facility shall have documented procedures for receiving and processing certified and non-certified FFBs.

The SOP covers the receiving of FFB supply from the PMU estate and also from external crop suppliers. All supplies of FFB were subjected to verification of documents (delivery notes) and quality checks by weighbridge personnel. All 4 storage tanks (1,800t capacity each) at the POM are designated as Mass Balance (MB) CPO.

Complied

E.2 Purchasing and goods in


E.2.1

The facility shall verify and document the volumes of certified and non-certified FFBs received.

The Mill verifies and records tonnages and supply source of FFB received at the weighbridge in the delivery notes and weighbridge tickets and all FFB data are entered by the weighing clerk into the Felda computer system or reporting spreadsheet every day. Daily and monthly reports are submitted to the Sabah Zone Office and Kuala Lumpur Head Office through the Mill Performance Report (MPR) system. Production Report for July 2013 – July 2014 were sampled & verified to be Mass Balance palm products. Satisfactory performance of deliveries of FFB made by transport contractors, Felda Transport Services.

Complied

E.2.2

The facility shall inform the CB immediately if there is a projected overproduction.

The POM has an internal monitoring and reporting mechanism for advising the CB of production variations. There is no projected overproduction to date.

Complied




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E.3 Record keeping


E.3.1

The facility shall maintain accurate, complete, up-to-date and accessible records and reports covering all aspects of these requirements.

Inspection of records at the Mill confirmed these were updated daily.

Complied

E.3.2

Retention times for all records and reports shall be at least five (5) years.

As per the SOP, the records are archived and to be stored for a minimum of 10 years.

Complied

E.3.3

The facility shall record and balance all receipts of RSPO certified FFB and deliveries of RSPO certified CPO, PKO and palm kernel meal on a three-monthly basis.

Transaction documents and bookkeeping of CPO and PK are done daily and monthly summary report of FFB receipt, FFB processed, CPO production, PK production and balance stocks submitted to the Sabah Zone Office and Kuala Lumpur Head Office. The two weighbridges (60t, & 50t capacity) at the Mill are duly calibrated and calibration certificates found to be in order. There is no PKO and Palm Kernel mill at the said POM facility. PK sold and delivered to Kilang Isi Sawit Sahabat at Wilayah Sahabat.

Deduction and conversion ratios for the volumes of CPO delivered from the Palm Oil Mill have been appropriately done and recorded. All deliveries of the MB sales are from positive stock.

Complied

E.3.4

The following trade names should be used and specified in relevant documents, e.g. purchase and sales contracts, e.g. *product name*/SG or Segregated. The supply chain model used should be clearly indicated.

POM has arranged to purchase an appropriate stamp for the use of identification of RSPO certified CPO and PK. Documents to be stamped ‘RSPO – MASS BALANCE appropriately for CPO and PK products. Traceability was verified for the production reports for July 2013 – July 2014 which was verified from the related records (FFB Delivery Note, Weigh Ticket, FFB & Truck Daily Summary, Production Report, CPO Storage Report, and CPO Delivery Orders.

Complied

E.3.5

In cases where a mill outsources activities to an independent palm kernel crush, the crush still falls under the responsibility of the mill and does not need to be separately certified. The mill has to ensure that the crush is covered through a signed and enforceable agreement.

There is no such outsourcing activity done at this POM. Complied

E.4 Sales and good out


E.4.1

The facility shall ensure that all sales invoices issued for RSPO certified products delivered include the following

Items (a) to (e) are included in the company’s invoices, delivery note and other relevant documents to all CPO buyers as stipulated in the SOP for RSPO/MB module.

Complied




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information:

a) The name and address of the buyer;

b) The date on which the invoice was issued;

c) A description of the product, including the applicable supply chain model (Segregated);

d) The quantity of the products delivered;

e) Reference to related transport documentation.

Deliveries of CPO and PK made with Delivery Notes. Data entry into computer system or reporting spreadsheet. Delivery of CPO and PK checked to ensure that the authorized quantities are not exceeded,

Satisfactory performance of deliveries made by contractor, Felda Transport Services.

E.5 Training


E.5.1

The facility shall provide the training for all staff as required to implement the requirements of the Supply Chain Certification Systems.

Not all staff implementing requirements of SCC in palm oil mill were sufficiently trained (last SCC training conducted on 28 Nov 2013, where only 3 personnel attended).

Minor NC- 14/14

E.6 Claims


E.6.1

The facility shall only make claims regarding the use of or support of RSPO certified palm oil that are in compliance with the RSPO Rules for Communication and Claims.

The PMU has not made any claims outside of the RSPO Rules for Communications and Claims.

Complied

3.1.2 Status on Supply Chain on POM:

Based on the documents and records presented during the on-site verifications made, it is concluded that the Felda KKS Hamparan Badai POM has been able to comply with the requirements of the RSPO SCCS under the ‘MB’ module and is thus eligible for ‘MB’ trading for its palm products for year 2014/2015.

3.1.3 Status on Trading of Certified Palm Products by PMU:

The PMU and POM has not commenced any trading of its certifiable palm products under the ‘MB’ module.

3.2 Status of Identified Noncompliance and Corrective Actions, Observations and Positive Elements.

The status of the Noncompliances (NCR) and Observations (OBS) identified against the MYNI Compliance Indicators is as per the details below:

Assessment Type Year Noncompliance (NCR) Observations (OBS)

Main Assessment 2014 14 (5-Major & 9-Minor) 7

Year 2014: Main Assessment (14 NCRs)

NCR # MYNI Indicator

Details of NCR

1 of 14 - Minor

P&C 2013: 2.1.2

Date issued: 15 Aug 2014

Date closed: 12 Sept 2014

Date of verification: ASA-01




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Nonconformance:

Though the following legal requirements identified in document, ML-IA/L4-API(0), dated Mar 2012, neither copy nor reference on the written information on legal requirements was made available as follows: Sabah Land Ordinance; EIA (Order 2005); Drainage & Irrigation Ordinance Sabah; Akta Surahanjaya Hak Asasi Manusia 1999; Road Transport Act; Street, Drainage & Building Act 1974 (Act 133).

Root Cause and Corrective Action:

Lack of proper management of organizing applicable legal references & to be distributed to relevant parties (mill & estates). Each responsible manager will arrange to make purchase of applicable legal references books from local bookstores & maintain copies at respective stations (mill & estates).

Verification (for effective closure): During ASA-01


Details of NCR

Date issued: 15 Aug 2014 Date closed: 12 Sept 2014 Date of verification: ASA-01

Nonconformance:

Monitoring mechanism at palm oil mill for ensuring compliance to legal requirements carried out recently on 1 May 2014, covering areas of environmental issues, & another monitoring on 7 Jan 2013 for factory & machinery, & occupational safety & health only. The other issues of social & conservation had not been covered.


Lack of consistent update on the compliance monitoring. Mill manager & its team will update the applicable legal register & to conduct monitoring review for ensuring compliance to legal requirements.

2 of 14 - Minor

P&C 2013: 2.1.3



Details of NCR

Date issued: 15 Aug 2014 Date closed: 11 Oct 2014 Date of verification: ASA-01

Nonconformance:

At Sahabat 26 estate (Field 22) there was absence of signage for the buffer zone and clear demarcation of the boundary at the sides of a river tributary bordering to the Kampong Long Patau land. At Sahabat 34 estate (Field 24) there were signboards showing the buffer zone area (adjacent to tributary of Sungai Ganduman). However, the boundary for the buffer zone to be maintained had not been clearly demarcated at both sides of the tributary.

3 of 14 - Major

4.4.1/ P&C 2013: 4.4.2


Signage for buffer zone had neither be provided sufficiently nor maintained by relevant estates. Responsible estates personnel will identify the buffer zone, to establish & locate the clear signage for buffer zones mentioned.




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Closure of Major NC:

Verification carried out on-site by sustainability team and evidences submitted to CB auditor.

Buffer zones and signages were confirmed to have been erected and records of briefings done were available with photographs taken on site. Submission was verified by CB auditor and accepted for closure.

Verification (for effective closure):

Effective closure will be further conducted during ASA-01.


Details of NCR


Date closed: 11 Oct 2014


Nonconformance:

At Sahabat 34 estate, records of pesticide usage i.e. amount applied per hectare and number of applications by the appointed contractor has not been maintained.


Lack of periodic review on the monitoring records carried by contractor. Estate personnel will ensure consistent monitoring records of pesticide usage & review by estate manager.



Sample of monitoring of pesticide usage records sighted with details noted on amount applied per hectare & number of applications by appointed contractor. Submission was verified by CB auditor and accepted for closure.

4 of 14 - Major

4.6.10 / P&C 2013: 4. 6. 2




Details of NCR


Nonconformance:

Annual medical surveillance was not provided to contracted pesticide sprayers, as sighted from Sahabat estate #26 & #34.


Contractor did not carry out annual medical surveillance for their pesticide sprayers.

Estates to remind & ensure contracted pesticide sprayers have been sent for annual medical surveillance.

5 of 14 - Major

4.6.5 / P&C 2013: 4.6.11



Arrangement had been made by Sahabat estate #26 & #34 to have their contracted pesticide sprayers screened for annual medical surveillance. It had been carried out & records of medical surveillance noted. Submission was verified by CB auditor and accepted for closure.




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Details of NCR


Nonconformance:

At Sahabat 26 estate, 2 contractors workers under the FFB tractor drivers were not wearing of safety PPE. Safety kits not available or maintained. Understanding of training and handling of pesticides not adequate. Training records of field workers not maintained.


Those contract workers were not fully aware of the importance of practicing safe handling at work.

Estate management will issue reminder to the contract workers, and provide appropriate briefing/training to them pertaining safe handling & ensure safety kits are accompanied during site work.


Verification carried out on-site by sustainability team and evidences submitted to CB auditor. Contract workers were found wearing adequate safety PPE during site works. First aid kits accompanied & sufficient supplies provided in the first aid kits. Training session organized for the field workers handling pesticides and records maintained. Effectiveness of the training verified via interview session to confirm their understanding as well as their on-site handling performance. Submission was verified by CB auditor and accepted for closure.

6 of 14 - Major

P&C: 4.7.1




Details of NCR




Nonconformance:

Records of training and briefings provided to the field workers has not been adequately maintained at the estate offices of Sahabat 26 and Sahabat 34 estates.


Estate management did not conduct proper monitoring of keeping records of training & briefing provide to field workers. Estates management will plan & conduct proper training to the field workers, and to make records of training & briefing in details.

7 of 14 - Minor

P&C: 4.8.2



Details of NCR

8 of 14 - Minor

P&C: 5.1.2

Date issued: 15 Aug 2014 Date closed: 12 Sept 2014





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Nonconformance:

The Management plan for mitigation of environmental impacts, timeframe for action and responsible persons were not adequately followed up by the Estate managers at the PMU. For instance at the Sahabat 26 estate, the buffer zone signage was placed for water pond for supply to the POM. However the extent of the boundary is not clearly demarcated. It is evidence that clear demarcation was also not done at the pond at Sahabat 34 estate


Lack of review & action by the estate management. Estate manager at Sahabat 26 will update & periodically review the management plan for mitigation of environmental impacts & timeframe for action. Demarcation will be carried out at the pond at Sahabat 34 estate.



Details of NCR




Nonconformance:

While performing visit at Sahabat S#34, scheduled wastes (used battery, used engine oil) were left inside a locked store, & there was no plan for proper disposal.


Lack of awareness of the handling & disposal of scheduled wastes. Estate will collect & label each scheduled wastes, and stored it at secured area. They will then be transferred to the oil mill for central handling to dispose off by licensed waste contractor.

9 of 14 - Minor

P&C: 5.3.2



Details of NCR


Nonconformance:

At the POM, it was discovered that the waste materials at the dumpsite/landfill was not segregated between the organic and inorganic waste such as mixing of metals, plastic and rubber waste together. No proper signage was erected. At the Sahabat 26 and 34 estates, there was no proper management planned for the disposal of the domestic waste.


Lack of management plan to handle the segregation & disposal of waste materials. Oil mill to prepare signage to differentiate the dumping of organic and inorganic waste. Estate management will plan & implement domestic waste disposal, including identifying approved landfill area.

10 of 14 - Minor

P&C: 5.3.3





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Details of NCR


Nonconformance:

The social impact assessments that the management of Palm Oil Mill, Sahabat 26, Sahabat 34 and Sahabat 59 (Tambisan) had conducted & identified areas where negative impacts are to be avoided or mitigated and positive ones are promoted. However, there was no evidence that these identified impacts had been monitored.


Lack of consistent review & implementation of the SIA report. Oil mill and estates management will review, update & implement monitoring activities on those identified negative impacts. Respective managers will maintain appropriate evidence of records of every briefing, meeting, and negotiation conducted.

11 of 14 - Minor

P&C: 6.1.3



Details of NCR




Nonconformance:

There was no evidence found in Sahabat 34 and 59 Estates that a management official responsible for social issues has been nominated.


The appointment of management official responsible for social issue was not clearly defined in estate management document. Estate management will officially appoint a management official responsible for handling social issues, and document its responsibility & authority in the appointment letter.

12 of 14 - Minor

P&C: 6.2.2



Details of NCR


Nonconformance:

Records of awareness and implementation of following policy and procedure and communication of such policy or procedure were not adequately maintained e.g. for Sexual harassment; Lodging of complaints and Prohibition of handling chemicals for female workers and pregnant workers.

13 of 14 - Major

P&C: 6.9.1


Lack of awareness of its importance by the workers. Oil mill & estates management will conduct awareness session to all office staff & workers pertaining the policy & procedures of handling sexual harassment, lodging complaints, prohibition of handling chemicals for female & pregnant workers.




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Verification carried out on-site by sustainability team and evidences submitted to CB auditor. Gender (women) committee meeting organized at oil mill on 22 Aug 2014, where it discussed the implementation & creating awareness of all office staff & workers about the policy & procedures of handling sexual harassment, lodging complaints, prohibition of handling chemicals for female & pregnant workers. Minute of meeting recorded. Awareness of workers verified & understood their rights provided by the policy & procedures. Submission was verified by CB auditor and accepted for closure.



NCR # SCC (2011)

Details of NCR


Nonconformance:

Not all staff implementing requirements of SCC in palm oil mill were sufficiently trained (last SCC training conducted on 28 Nov 2013, where only 3 personnel attended).


Misunderstanding of its importance to include each and everyone involved in supply chain at oil mill. Sustainability team will conduct the training session for all relevant staff implementing requirements of SCC in oil mill. Record of training will be retained. Effectiveness of training will be verified by oil mill manager.

14 of 14 - Minor

Module E 5.1


Year 2014: Main Assessment (7 Observations)

Status

Ref No: RSPO MYNI Indicator

Location Details of Observation Opened date

Closed date

Remark, if any

OBS 1 P&C 2013, 1.2.1

PMU office & estates


15 Aug 2014

New RSPO P&C (2013) requirement. To follow up during ASA-01

OBS 2 P&C 2013, 1.3.1

PMU office & estates

Policy of Commitment to a Code of Ethical Conduct and Integrity has not yet been documented and communicated to all levels of the workforce and operations.

15 Aug 2014


OBS 3 2.1.1 PMU – Estate

Though there were 3 year ‘continual programme’ to reduce the volume use of paraquat at each estates, the target limit for 3 years was the same. There should be review for improvement needed.

15 Aug 2014

To follow up during ASA-01

OBS 4 5.1.3 PMU – Mill & Estate

Environmental aspect & impact assessment (ref: FPI/L4/QOHSE-1.7 & FPI/L4/QOHSE-1.8, dated 1 May 2014) should include monitoring of domestic waste, & methane gas emitted from palm oil mill operation. Environmental aspect & impact assessment report filed at Sahabat 59 estate (Tambisan) should include monitoring of diesel container, &

15 Aug 2014





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potential spillage of diesel at gen-set areas (inside estate).

OBS 5 5.2.1 Estate The Sahabat 59 estate has identified an area (Block 5C) which is considered not productive for the production of oil palm. Therefore a separate management regime should be implemented in order to preserve the area.

15 Aug 2014


OBS 6 5.4.1 PMU – Mill The recording and monitoring on the usage of water from the existing pond for use in the mill can be further improved.

15 Aug 2014


OBS 7 5.6.2 PMU – Mill & Estate

Plans for reduction or minimization of GHG have not been established yet.

15 Aug 2014


3.2.2 Identified Positive Elements

1) KKS Hamparan Badai PMU has provided proper infrastructure such as road access and basic social amenities such as grocery stores, clinics and schooling to the local communities at the Sahabat Grouping estates.

2) The PMU has made financial contributions during local festivities and assisted in the significant events such as marriages, burial and medical assistance when needed.

3.3 Feedback Raised by Stakeholders and Findings

Prior to and during the Assessment, written and verbal feedback communicated from the stakeholders on the environmental and social performance of KKS Hamparan Badai PMU operations were sourced. All pertinent feedback issues were reviewed and followed up for verification and these had been accordingly incorporated into the report findings. See table below: Stakeholders’ Feedback PMU Response Intertek verification /

comments Follow up (if any)

Government Agencies

Comunication done via email on 12 June 2014. See list under para 2.5. No feedback received.

There has been no feedback / enquiries received from any government Agencies concerning the operations of KKS Hamparan Badai PMU.

Verified during on-site assessment that there has been no issues from any Government Agencies concerning the PMU’s operations.

-

Non-Governmental Organizations

Comunication done via email on 12 June 2014. See list under para 2.5. No feedback received.

There has been no feedback / enquiries received from any NGOs concerning the operations of KKS Hamparan Badai PMU.

Verified during on-site assessment that there has been no issues from any NGOs concerning the PMU’s operations.

-

Local Communities At Hamparan Badai PMU, a total of 21 stakeholders present on third day of statekholder consultation, comprising of Village heads, Contractors, Transportor, Local community (School & Clinics), Government agencies (Auxilliary Police,

The programs for improvement of road building & maintenance and waste management will be monitored.

Verified during on-site assessment that the PMU has a mid and long term management plan for the imporvement of infrastructure, social and

To be followed up during Surveillance assessment (ASA-01)




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Firefighters). They were privately interviewed. Another subcontractor (providing workers for pesticides spray) who was absent, was contacted & interviewed via phone. Concerns and suggestions raised include: • PMU to consider equipping fire

extinguisher at Tabika Kemas (kindergarden).

• PMU to consier expedite payment to contractors.

• PMU to consider improving road condition.

• PMU to consider enforcing workers to wear helmet while riding motorcycles within estates & public roads.

More social events and meetings will be planned as part of ongoing consultations with local community and villagers.

environmental needs of the local community.

Other Interested parties Nil Nil Nil -




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4.0 ASSESSMENT CONCLUSION AND RECOMMENDATION

Based on the findings above, FELDA KKS Hamparan Badai Grouping had been able to demonstrate its compliance with the RSPO Principles and Criteria (April 2013), Malaysian National Interpretation (MY-NI November 2010) and the RSPO Supply Chain Certification Standard (November 2011) for Palm Oil Mill. Therefore, it is recommended that the certification of FELDA KKS Hamparan Badai Grouping be approved.

Signed for and on behalf of Intertek Certification International Sdn Bhd

Augustine Loh Supervising Lead Assessor

William Ng Trainee Lead Assessor

Date: 18 Nov 2014

Date: 18 Novt 2014

4.1 Acknowledgement of Internal Responsibility and Confirmation of Assessment Findings

This is to acknowledge and confirm the assessment visits described in this report and the acceptance of the contents and findings in this assessment report.

Signed for and on behalf of Felda Global Ventures Plantations (M) Sdn Bhd Mr. Norazam Abdul Hameed Head, Plantation Sustainability & Quality Management Date: 19 Nov 2014




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4.2 INTERTEK- RSPO P&C Certificate details for KKS Hamparan Badai Grouping

Certificate No: RSPO 929688

Issue date: 4 December 2014

Expiry date: 3 December 2019

Organization Felda Global Ventures Plantations (Malaysia) Sdn Bhd

Address of Head Office:

Felda Global Ventures Plantations (Malaysia) Sdn Bhd, PSQM Department, SPO Unit, 8th Floor Balai Felda, Jalan Gurney Satu, 54000 Kuala Lumpur

RSPO Membership No:

1-0013-04-000-00

Plantation Management Unit:

KKS Hamparan Badai Grouping

Address of POM: Kilang Sawit Felda Hamparan Badai, Peti Surat No. 25, 91150 Cenderawasih, Lahad Datu, Sabah

Standards:

RSPO Principles and Criteria (April 2013); Malaysian National Interpretation (November 2010); RSPO Supply Chain Certification Standards (November 2011) for the Palm Oil Mill.

Certification scope: Production of Crude Palm Oil and Palm Kernels

Supply Chain model for

CPO & PK:

Mass Balance (MB)

Details of the Mill and Supply bases covered by this certificate and the tonnage approved are as follows:

GPS Reference Name Address

Latitude Longitude

Hamparan Badai POM (Capacity: 60 MT/hour)

Felda Palm Industries Sdn Bhd Kilang Sawit Hamparan Badai Peti Surat No. 25, 91150 Cenderawasih, Lahad Datu, Sabah, Malaysia

5°20'9.13"N 119°12'10.80"E



5°16'49.37"N 119°12'57.60"E


FGVP Ladang Sahabat 26,Peti Surat No. 69, Pos Cenderawasih, 91150 Lahad Datu, Sabah, Malaysia

5°21'57.96"N 119°12'10.80"E

3. FGVPM Sahabat 31 & 32 estate


5°16'52.32"N 119°12'57.60"E

4. FASSB Tambisan estate

Stesen Penyelidikan Sahabat 59, Peti Surat No. 02, Pos Cenderawasih, 91150 Lahad Datu, Sabah, Malaysia

5°21'57.96"N 119°12'10.80"E



5°21'58.21"N 119°12'7.20"E



5°21'57.96"N 119°12'10.80"E


Pejabat Felda Sahabat 34, Peti Surat No. 34, Pos Cenderawasih,91150 Lahad Datu, Sabah, Malaysia

5°21'57.96"N 119°12'10.80"E




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The annual certifiable tonnages of CPO and PK production at the PMU from the supply base/suppliers as assessed and verified during the current Assessment and projected year are detailed as follows:

KKS Hamparan Badai Grouping Jan – Dec 2013

- Actual

Jan – Dec 2014


Jan – Dec 2015

- Projected

Total certifiable FFB Processed (MT) 178,120 172,390 171,500

Total certifiable CPO Production (MT) 36,568 35,322 35,158

Total certifiable PK Production (MT) 8,817 8,620 8,575

SCCS model for POM MB MB MB




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Appendix A:

Qualifications of Lead Assessor and Assessment Team Mr. William Ng Tuck Seong – Trainee Lead Assessor / Technical Expert

(Palm Oil Mill and Supply Chain) - Bachelor of Science (Biotechnology), Master in Business Administration

Mr. William is an IRCA Third Party Assessment (TPA) Lead Auditor and IRCA Lead Tutor for IRCA ISO 9001 and ISO 22000 Food Safety Management Systems (FSMS) Lead Auditor Courses in Intertek, Malaysia. He has over 10 years of fieldwork and experience in Agricultural and Food related auditing. He has successfully completed the IRCA accredited Lead Auditor course in ISO 9001:2008, ISO 22000, RSPO Principles and Criteria Lead Assessor Course and International Sustainable Carbon Certification (ISCC) Lead Auditor course. He has also completed the RSPO training on RSPO P&C (2013) and RSPO RED requirements. He is currently the Food Safety Manager of Intertek, Malaysia and has performed over 600 auditing days on quality, food safety and hygiene assessments in various sectors including oil palm plantations. He was the RSPO CB Assessment Team Member which audited several RSPO certified Plantation Management Units since in 2012. He is a member of the Internal Review Panel for RSPO Assessment reports since 2011. Mr. Augustine Loh – Supervising Lead Assessor / Technical Expert (Palm Oil Mill, Environment, Social, Conservation & HCV area, Land Use and Supply Chain) – Master in Business Administration, USA and Diploma in Maritime Studies, Singapore Mr. Augustine Loh is an IRCA Third Party Assessment (TPA) Lead Auditor and IRCA Lead Tutor for IRCA ISO 9001 and OHSAS 18001 Lead Auditor Courses as well as Tutor for RSPO Certification Programs and Integrated Management System in Intertek, Malaysia. He has over 25 years of fieldwork and experience in Palm based product survey, supply chain monitoring, inspection and testing. He has successfully completed the IRCA accredited Lead Auditor course in ISO 9001:2008, ISO 14001:2004, OHSAS 18001:2007, ISO 22000, RSPO Principles and Criteria Lead Assessor Course, RSPO Supply Chain Certification and International Sustainable Carbon Certification (ISCC) Lead Auditor course. He has also completed the RSPO training on RSPO P&C (2013), RSPO Palm GHG tool and RSPO RED requirements. He has conducted assessments of organizations in Malaysia, Singapore, Indonesia, Brunei, Thailand, Cambodia and Australia. He is currently the RSPO Program Manager in Intertek, Malaysia and has performed over 700 auditing days on quality, environmental and safety & health assessments in various sectors including oil palm plantations. He was the RSPO CB Assessment Team Leader / Member which audited several RSPO certified Plantation Management Units since in 2009. He was the CB Team Leader in the stakeholder consultation and development of the RSPO Cambodian Local Indicators. He is a member of the Internal Review Panel for RSPO Assessment reports since 2010. Mr. Sazali Hasni – Assessor / Technical Expert (Environment, Conservation and HCV area) - Bachelor of Science (Forestry)

Mr. Sazali Hasni has over 25 years work experience in the forestry sector. He is an IRCA Auditor for ISO 9001 and auditor for the PEFC Chain-of-Custody Certification. He has successfully completed training in the Intertek In House RSPO P&C, MYNI. He was a member in the stakeholder consultation and development of the Malaysian Criteria & Indicators (MC&I) for Forest management Certification. He has been involved in the auditing of Forest Management Certification for the Perak State Forestry Department and Pahang State Forestry Department. He has also been involved with a German based company in testing their criteria for carbon tracing in an oil palm plantation in 2011. He had also acted as the regional consultant to International Tropical Timber Organization (ITTO) for the Asia Pacific region in the Evaluation and Monitoring of Projects funded by the organization from 1994 to 1998. Projects funded are mainly forestry related such as reforestation, conservation, community forestry apart from other research based projects. He is a member of the RSPO CB Assessment team which audited several RSPO certified Plantation Management Units since 2014. Mr Chin Bit Kee – Assessor / Technical Expert (Good Agriculture Practice, Integrated Pest Management and Social) – Bachelor of Science (Food Technology) from University of Reading, United Kingdom Mr. Chin Bit Kee has more than 5 years working experience in the oil palm plantation, agriculture & social (worker welfare) related field. He has successfully participated in RSPO training conducted internally by Intertek on 17 April 2014 and completed a supervised period of training in practical auditing in agriculture industry and related field, with more than 15 days audit experience in at least 3 audits at different organizations. He has adequate knowledge on Palm Oil sector such as industry fundamentals sustainability , social and OHS issues (e.g. worker welfare issues and social matters such as employment terms , gender issues , worker welfare etc,) environmental matters (e.g. pollution control , conservation of resources). He is a member of the RSPO CB Assessment team which audited several RSPO certified Plantation Management Units since 2014.




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Appendix B:

Assessment Plan (Actual)

Assessors and Assessment Activity Date Time

Asssessment Team

9-1pm Travel to KKS Hamparan Badai, Lahad Datu, Sabah 1-2pm Lunch Break 2-3pm Opening Meeting and Briefing at KKS Hamparan Badai– POM Office

3-6pm Review of Documentation and Follow up Issues based the Previous Assessment • Review of changes for compliance to revised P&C 2013 • Review of Time Bound Plan • Verification for compliance with rules on partial certification

6-7pm Break

11/08/2014 Day 1

7-10pm Team meeting and discussion

Assessors and Assessment Activity

Assessment Team

Date Time

William Ng Tuck Seong (NTS)

Augustine Loh (AL) Sazali bin Hasni (SH) Chin Bit Kee (CBK)

9-10am Meeting & Briefing at KKS Hamparan Badai (Palm Oil Mill Office)

10-1pm Site assessment at KKS Hamparan Badai Palm Oil Mill (RSPO P&C: 1~8)

• P1 Transparency • P2 Laws &

regulations • P3 Economic &

Financial Viability • P4 Best Practices at

Estates & Mill • P7 New Plantings • P8 Continual

Improvement • SCC for POM

Site assessment at KKS Hamparan Badai Palm Oil Mill (RSPO P&C: 1~8)

• P1 Transparency • P2 Laws & regulations • P3 Economic &



Improvement • SCC for POM

Site assessment at FGVP Sahabat 26 estate (RSPO P&C: 1~8) • P5 Environmental,

Conservation & Mill including HCV

• P8 Continual Improvement

Site assessment at FGVP Sahabat 26 estate (RSPO P&C: 1~8) • P6 Employees,

Individuals & Communities incl. Gender Issues


1-2pm Lunch 2-6pm Continue site

assessment at KKS Hamparan Badai Palm Oil Mill

Continue site assessment at KKS Hamparan Badai Palm Oil Mill

Continue site assessment at FGVP Sahabat 26 estate

Continue site assessment at FGVP Sahabat 26 estate

6-7pm Break

12/08/2014 Day 2



Assessment Team


Augustine Loh (AL) Sazali bin Hasni (SH) Chin Bit Kee (CBK) 9-1pm

Site assessment at FGVP Sahabat 34 estate (RSPO P&C: 1~8)





Improvement

Site assessment at FGVP Sahabat 34 estate (RSPO P&C: 1~8)





Improvement

Site assessment at FGVP Sahabat 34 estate (RSPO P&C: 1~8) • P5 Environmental,



Site assessment FGVP Sahabat 34 estate (RSPO P&C: 1~8) • P6 Employees,



1-2pm Lunch

13/08/2014 Day 3

2-6pm Stakeholder / Consultations:




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• Contractors

• Suppliers

• Transporters

• NGOs

• Government Department / Agencies

• Local Community # Mandatory for each category to be audited

6-7pm Break 7-10pm Team meeting and discussion


Assessment Team


Augustine Loh (AL) Sazali bin Hasni (SH) Chin Bit Kee (CBK) 9-1pm

Site assessment at FASSB Tambisan estate (RSPO P&C: 1~8)



Financial Viability • P4 Best Practices

at Estates & Mill • P7 New Plantings • P8 Continual

Improvement

Site assessment at FASSB Tambisan estate (RSPO P&C: 1~8)





Improvement

Site assessment at FASSB Tambisan estate (RSPO P&C: 1~8) • P5 Environmental,



Site assessment at FASSB Tambisan estate (RSPO P&C: 1~8) (RSPO P&C: 1~8) • P6 Employees,



1-2pm Lunch 2-6pm Continue site

assessment at FASSB Tambisan estate

Continue site assessment at FASSB Tambisan estate



6-7pm Break

14/08/2014 Day 4



Assessment Team

9-11am Preparation of Closing Meeting 11-12pm

Team Meeting and Discussions with KKS Hamparan Badai Management Representative

12-1pm Closing Meeting & Briefing at Palm Oil Mill Office 1-2pm Lunch

15/08/2014 Day 5

2pm onwards

Travel back to Kuala Lumpur




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Appendix C-1:

Location of Felda KKS Hamparan Badai grouping, Lahad Datu, Sabah, Malaysia

Felda Hamparan Badai




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Appendix C-2:

Location Map of Felda KKS Hamparan Badai grouping, Lahad Datu, Sabah, Malaysia

(Felda Sahabat 24 estate, Felda Sahabat 26 estate, Felda Sahabat 31 & 32 estate, FASSB Tambisan estate, Felda Sahabat 28 estate, Felda Sahabat 33, and Felda Sahabat 34)




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Appendix C-3-1:

Felda Sahabat 24 estate

Appendix C-3-2:





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Appendix C-3-3:

Felda Sahabat 31/32 estate

Appendix C-3-4:

FASSB Tambisan estate




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Appendix C-3-5:


Appendix C-3-6:





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Appendix C-3-7:





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Appendix D:

Photographs of Assessment findings at Felda KKS Hamparan Badai grouping

Overview of Hamparan Badai POM

Safety signages and Recycling bins

Display of Safety campaigns at Notice boards

Inspection of Scheduled waste storage and disposal.

Secondary containment for the Diesel skid tanks

High noise zones at POM and PPE wearing signages




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Inspection of Chemical stores and mixing areas.

Field inspection for wearing of PPE by field workers

Pesticide spraying warning signages during spraying activities at the field.

Inspection of planting of Beneficial plants at the estates.

Inspection of Buffer zone maintenance and signages

Inspection of landfill site and signages.




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Conducting of stakeholder consultations

Scheduled wastes left in the room at Sahabat 34

Verification of Buffer zone signages at Sahabat 26

Verification of Buffer zone map (Sahabat 26)

Verification of Buffer zone signages at Sahabat 34

Verification of Buffer zone map (Sahabat 34)




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Verification of Pesticides records (Sahabat 26)

Verification of Medical surveillance records (Sahabat 26)

Verification of Medical surveillance carried out for Sahabat 26 workers




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Appendix E:

Time Bound Plan as submitted by FGVPM (updated in Sept 2014)

No Mill complexes to be audited in the respective year 2009 2010 2011 2012 2013 2014 2015 2016 1. K.Gelanggi Jengka

21 Adela Belitong Palong

Timor Neram Krau

2. L. Utara 6 Jengka 3

Lok Heng Bukit Besar

Serting Hilir Pancing Tersang

3. Jengka 8

Semencu Kahang Maokil Besout Serting

4. L. Utara 4

Waha Kulai Tenggaroh Trolak Pasoh

5. Jengka 18

B. Kepayang

Nitar T.Timor Keratong 2 Cini 2

6. Padang Piol

Bukit Mendi

Penggeli Kechau A Keratong 3 Cini 3

7. Kemasul

Lepar Hilir

Kechau B Sg. Tengi Kemahang

8. Tementi

Bukit Sagu

Fajar Harapan

Keratong 9 Chalok

9. Triang

Baiduri Ayu

Mempaga Aring A

10. Embara. Budi

Aring B

11. Lancang. Kemudi

Kertih

12. Kalabakan

Selendang

13. Umas

Ciku

14. Mercu Puspita

Sampadi

15. Hamparan Badai

16. Kemudi. Sakti

17. Nilam Permata

18. Selancar 2A

19. Selancar 2B

20. Jerangan Barat

21. Jerangan Baru

New 2 6 9 9 9 21 14 Total 2 8 17 26 35 56 70

---End---

felda global ventures plantations (malaysia) sdn bhd - Intertek

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