mspo certification summary report - TUV Nord

MSPO

CERTIFICATION SUMMARY

REPORT

SPOC Q27 SIBUTI 2 – (DAGANG, NIAH, BULAU, BEKENU & SIBUTI)

SURVEILLANCE AUDIT 03

Remote Audit Date: 16/06/2020

Onsite Audit Date: 07/09/2020 to 10/09/2020

TUV NORD (Malaysia) Sdn Bhd No. 9F-1A, 9th Floor, Tower 2 @ PFCC Jalan Puteri ½, Bandar Puteri Puchong

47100 Puchong, Selangor. Phone: +603 8600 4031/4032

Fax: +603 8600 4550

MSPO Certification Summary Report

Company Name: Malaysian Palm Oil Board

Certifying Unit: SPOC Q27 Sibuti 2

Client Number: 92-101

Audit Type: ASA 03

Mode of Audit: Remote and onsite

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Table of Contents

1. INTRODUCTION ............................................................................................ 4

1.1. Objective 4

1.2. Scope 4

1.3. Appointment & Qualification of Audit Team Members 4

2. METHODOLOGY ............................................................................................ 9

3. ORGANISATION INFORMATION ................................................................ 15

4. CERTIFICATION ASSESSMENT ................................................................. 20

4.1. Surveillance Audit 03 20

4.2. Stakeholders’ Consultation 21

4.3. Summary of Assessment 22

4.4. Status of Non-Conformities Previously Identified 31

4.5. Detail of Audit Findings in last audit 31

4.6. Detail of Audit Findings Identified During This Audit 33

5. CONCLUSION 35

6. RECOMMENDATION 36

7. LIST OF INTERVIEWEES 37

Annex / Enclosures 38

ABBREVIATIONS





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CHRA Chemical Health Risk Assessment

CPO Crude Palm Oil

CSR Corporate Social Responsibility

DOE Department of Environment

EFB Empty Fruit Bunch

EIA Environment Impact Assessment

FFB Fresh Fruit Bunch

GAP Good Agriculture Practices

GPS Global Positioning System

HBV High Biodiversity Value

IPM Integrated Pest Management

ISO International Standard Organisation

LKN Latihan Khidmat Nasihat

MPOB Malaysian Palm Oil Board

NC Non Conformity

OSH Occupational Safety and Health

P&C Principle and Criteria

PPE Personal Protective Equipment

RTE Rate, Threatened and Endangered

SA8000 Social Accountability 8000

SIA Social Impact Assessment

SOP Standard Operating Procedure

SPOC Sustainable Palm Oil Cluster

WHO World Health Organization





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1. INTRODUCTION

MPOB has commissioned TÜV NORD (Malaysia) Sdn Bhd to conduct surveillance audit for SPOC Q27 Sibuti 2 according to MS 2530-2:2013 Part 2, General Principles for Independent Smallholders.

1.1. Objective

The objective of this audit is to assess the MPOB Cawangan SPOC Q27 Sibuti 2 as group manager managing the independent smallholders by an independent certification body for compliance of the applied standard.

1.2. Scope

The assessment is based on the documentation established by MPOB Cawangan SPOC Q27 Sibuti 2 in managing the independent smallholders’ scheme.

The supporting documents are provided to the audit team as well as information received by means of interviews and background investigation.

The documents and information are reviewed against the requirements and criteria mentioned below. TÜV NORD has employed a risk-based approach in the verification, focusing on the identification of significant risks and reliability of the monitoring and reporting.

The assessment is carried out on the basis of the MS 2530-2:2013: Part 2: General principles for independent smallholders.

The following references are used as part of the assessment; the compliance of the requirements out of the guidelines applied was checked.

1. Kod Amalan Baik (GAP) Perkebun Kecil, Malaysia Palm Oil Board

2. Guidelines for Development of a Standard Operating Procedure for Oil Palm Cultivation on Peat.

3. Malaysian Sustainable Palm Oil Part 2: General Principles for Independent Smallholders Audit Guidance.

1.3. Appointment & Qualification of Audit Team Members

The audit team appointed consists of the team leader and 3 team members. The team contribute to the review of documents, assessment of the project activity and preparation of this report.

Qualification of the Lead Auditor in Training: Chan Shi Lie

Requirement Qualifications

Post-secondary education, college or university diploma / degree in one of the following

i) Agriculture;

ii) Science & Technology (e.g. Environmental Sciences, Life Sciences, Geological Sciences, Natural Sciences,);

iii) Engineering, Process Technology;

Graduate in Bachelor of Media Technology (Major in Broadcasting)





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Requirement Qualifications

iv) Energy Management, Quality Management;

v) Social Sciences and/or Anthropology;

vi) Business Management; or

vii) Other relevant related fields

At least five (5) years of work experience in the oil palm sector or related field in consultancy / auditing of similar industry or equivalent related to and as necessary for the certification process. (e.g., sustainability, palm oil management; agriculture, ecology; social science)

6 years working experience in oil palm plantations.

Successfully completed MS 2530 series of standards training

Successfully completed MS 2530:2013 series of standards training.

Conducted at least three (3) MSPO or equivalent sustainability certification audits as Lead Auditor-in-training with a minimum of fifteen (15) man-days under the supervision of a qualified Lead Auditor for MSPO or equivalent sustainability certification schemes within the last two (2) years.

Qualified as auditor for MSPO scheme.

A good knowledge in handling and evaluating sources of information and data. Able to communicate in Bahasa Malaysia, English and/ or any other local language.

Qualified as auditor for MSPO scheme

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

Able to communicate in Bahasa Malaysia, Mandarin and English.

Good Agricultural Practices (GAP), and Integrated Pest Management (IPM), pesticide and fertilizer use


Health and safety auditing on the farm and in processing facilities, for example ISO 45001 or Occupational, Health & Safety Assurance System

Successfully completed ISO 45001:2018 Lead Auditor course.

Worker welfare issues and social auditing experience, for example with SA8000 or related social or ethical accountability codes

Successfully completed SA 8000 Basic training

Environmental and ecological auditing, for example experience with organic agriculture, ISO 14001 or Environmental Management Systems (EMS) or High Conservation Value (HCV)

Successfully completed IMS ISO 9001, 14001 and 45001 LA course.





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Qualification of Team Members

Requirement Assessor Qualification Compliance

Post-secondary education, college or university diploma / degree in one of the following

i) Agriculture;

ii) Science & Technology (e.g. Environmental Sciences, Life Sciences, Geological Sciences, Natural Sciences,);

iii) Engineering, Process Technology;

iv) Energy Management, Quality Management;

v) Social Sciences and/or Anthropology;

vi) Business Management; or

vii) Other relevant related fields

Muhammad Khairul Anuar bin Azizul Hasan

Graduate in Applied Science (Major in Plantation Industry and management)

Yes

Ariff Bin Lokman Graduate in Applied Science (Major in Plantation and management)

Joseph Sim Siaw Seng Graduated in Diploma in Occupational Safety & Health

At least five (5) years of work experience in the oil palm sector or related field in consultancy / auditing of similar industry or equivalent related to and as necessary for the certification process. (e.g., sustainability, palm oil management; agriculture, ecology; social science)



Yes

Ariff Bin Lokman 7 years working experience in oil palm plantations.

Joseph Sim Siaw Seng 5 years of working experiences in oil palm plantations.

Successfully completed MS 2530 series of standards training


Successfully completed MS 2530:2013 series of standards training

Yes

Ariff Bin Lokman Successfully completed MS 2530:2013 series of standards training

Joseph Sim Siaw Seng Successfully completed MS 2530:2013 series of standards training

Conducted a minimum six (6) on-site audits for a total of at least 20 man-days of audit experience as an auditor-in-training under the direction and guidance of a qualified Lead Auditor for MSPO or equivalent sustainability certification schemes.


Qualified as auditor for MSPO scheme

Yes

Ariff Bin Lokman Qualified as auditor for MSPO scheme

Joseph Sim Siaw Seng Auditor in training





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A good knowledge in handling and evaluating sources of information and data. Able to communicate in Bahasa Malaysia, English and / or any other local language.

`Muhammad Khairul Anuar bin Azizul Hasan

Bahasa Malaysia and English.

Yes

Ariff Bin Lokman Bahasa Malaysia and English.

Joseph Sim Siaw Seng Bahasa Malaysia, Mandarin and English.

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


7 years working experience in oil palm plantation.

Yes


Joseph Sim Siaw Seng 5 years working experience in oil palm plantation.

Good Agricultural Practices (GAP), and Integrated Pest Management (IPM), pesticide and fertilizer use


7 years working experience in oil palm plantation.

Yes



Health and safety auditing on the farm and in processing facilities, for example ISO 45001 or Occupational, Health & Safety Assurance System


Successfully completed IMS ISO 9001, 14001 and 45001 LA course.

Yes

Ariff Bin Lokman Successfully completed IMS ISO 45001:2018 Lead Auditor course.


Worker welfare issues and social auditing experience, for example with SA8000 or related social or ethical accountability codes


Successfully completed SA8000 Basic training

Yes

Ariff Bin Lokman Successfully completed Basic SA8000 training.

Joseph Sim Siaw Seng Successfully completed Basic SA8000 training.





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Environmental and ecological auditing, for example experience with organic agriculture, ISO 14001 or Environmental Management Systems (EMS) or High Conservation Value (HCV)


Successfully completed IMS 9001, 14001 and 45001 LA course, Auditor for MSPO scheme.

Yes

Ariff Bin Lokman Successfully completed IMS ISO 14001:2015 Lead auditor course and auditor for MSPO scheme.

Joseph Sim Siaw Seng Successfully completed IMS 9001, 14001 and 45001 LA course, Auditor for MSPO scheme.





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2. METHODOLOGY

The audit approach remote and onsite audit consists of the following steps:

Appointment of team members and reviewer / certifier;

Contact client for relevant documentation according to the applicable MSPO standards;

Audit planning;

Background investigation, desk review of submitted documents;

Remote audit for document assessment and virtual communication with clients.

Remote audit reporting.

Resolution of non-conformance (NC) if any for remote audit

On-site assessment, inspections, interviews with operational personnel, stakeholders and its contractors; review of documentation;

On-site reporting

Resolution of non-conformance (NC) (if any)

Draft audit reporting

Technical review

Final audit reporting

Final approval, certification decision and issuance of certificate.

Surveillance Audit:

Surveillance audit conducted on 16/06/2020 for Remote audit and on 07/09/2020 – 10/09/2020 for Onsite covers the following activities but not limited to below:

Remote:

Desk documentation assessment;

Reviewed revised and updated documentation established;

Training records;

Reports established;

Stakeholders consultation via phone calls;

Assessment reporting;

Onsite:

Onsite visit, observations and inspections of farms management and activities;

Interview smallholders;

Reviewed revised and updated documentation established and implemented;





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FFB production records;

Training records;

Land titles and land application approvals;

Review and closed out of non-conformance raised during previous audit and observations raised during remote audit;

Assessment reporting;

On-site Assessment

The audit of the smallholders is conducted according to the MS 2530-2:2013 Part 2 for Independent Smallholders.

The methodology for collection of objective evidence included physical site inspections, observation of tasks and processes, interviews of smallholders, SPCO officers, review of documentation and data.

MSPO guidance documents are used to guide the collection of information. Any comments from external stakeholders were considered in the assessment.

For this onsite audit, the selected independent smallholders are based on the formula S = risk factor √n where S = sample size and n = number of group members which is in accordance to MSPO certification procedure.

The group of smallholders consists of 573 new members and 568 old members.

Based on the formula, the sample size S = 1.5√573 = 35.91 for new members and S=1.5√568 = 35.75 for old members. Therefore, the total of smallholders 36 and old members are 36 round up to next integral. Thus, a total of 72 smallholders selected for the onsite assessment and inspection listed in Table 2-1 below:

Table 2-1: List of Sampled Independent Smallholders

Name of independent smallholders GPS Coordinates

Beron AK Edward Kana N 3.955°, E 113.9174°

Bunsy AK Tegong N 3.930°, E 113.9217°

Daniel AK Jaun N 3.931°, E 113.9221°

Demit AK Bandang N 3.973°, E 113.9167°

Donakid Sullang AK Idai N 3.946°, E 113.9276°

Dunstan Damat AK Imong N 3.946°, E 113.9277°

Empili AK Chundi N 3.928°, E 113.9231°

Hammonds Muyau Adam N 3.946°, E 113.9297°





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Helen AK Nyala N 3.949°, E 113.9219°

Henson AK Sali N 3.949°, E 113.9229°

Joshua Lasu AK Chundi N 3.952°, E 113.9229°

Kandau AK Angkit N 3.947°, E 113.9273°/

N 3.946°, E 113.9278°

Kassin AK Luna N 3.949°, E 113.9222°

Lajong AK Naga N 3.947°, E 113.9269°

Lanchang AK Chundi N 3.925°, E 113.9500°

Sayan AK Edar N 3.930°, E 113.9222° /

N 3.954°, E 113.9081° /

N 3.947°, E 113.9091°

Nuing AK Biju N 3.921°, E 113.9504°

Ricky AK Sali N 3.929°, E 113.9245°

Sanggat AK Jarin N 3.928°, E 113.9229°/

N 3.922°, E 113.9205°/

N 3.922°, E 113.9212°

Siah AK Igai N 3.959°, E 113.9310°

Suai Ak Nyantek N 3.923°, E 113.9219°/

N 3.953°, E 113.9104°

Tera AK Chundi N 3.921°, E 113.9306°/

N 3.953°, E 113.9104°

Ussik AK Ngangik N 3.922°, E 113.9204°

Veally Walter AK Timbu N 3.945°, E 113.9281°/

N 3.974°, E 113.9119°

Emparan AK Biju N 3.951°, E 113.9019°

Victor Sultan AK Liman / Liman AK Magok N 3.948°, E 113.9233°/

N 3.964°, E 113.9322°/

N 3.963°, E 113.9035°/





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N 3.961°, E 113.9132°/

N 3.957°, E 113.9081°/

N 3.947°, E 113.9267°

Gema AK Ladon N 3.941°, E 113.9030°

Simba AK Chundi N 3.928°, E 113.9228°/

N 3.953°, E 113.9231°

Alah AK Magok N 3.945°, E 113.9278°

Adam AK Aieng N 3.945°, E 113.9301°

Subang AK Ngangik N 3.956°, E 113.9137°

Juddey Mitchelle AK Idai N 3.942°, E 113.9255°

Timut AK Britin N 3.957°, E 113.9196°/

N 3.958°, E 113.9187°

Daisy AK Chundi N 3.941°, E 113.9029°/

N 3.949°, E 113.9247°

Watson Melina AK. Timbu N 3.945°, E 113.9302°

Munang Ak Bunsu N 3.990°, E 113.9462°

Serang AK Agam N 4.017°, E 113.9473°

Sylvester Stallone AK Degom N 3.991°, E 113.9887°

Raymond Ramba AK Jupong N 3.974°, E 113.9284°

Luyoh AK Mujah N 3.952°, E 113.9085°

Kana @ Geoffrey Kana AK Sahi N 4.009°, E 113.9474°

Beney AK Radin N 3.978°, E 113.9476°

Bruda AK Mauong N 3.979°, E 113.9328°

Albert Aggu AK Sultan N 3.993°, E 113.9765°

Bayang @ Rosalind Bayan AK Seman N 3.991°, E 113.9869°





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Selemah AK Tugang N 3.990°, E 113.9788°

Ribah AK Bangeng N 3.986°, E 113.9429°

Reneald AK Sombang N 3.995°, E 113.9463°

Sedai AK Tingga N 4.003°, E 113.9469°

Racha AK Mauong N 3.974°, E 113.9295°

Philip AK Ba’ae N 4.007°, E 113.9471°

Nuli AK Ambau N 3.996°, E 113.9488°

Doreen AK Munau N 3.991°, E 113.9776°

Dumang AK Munau N 3.988°, E 113.9698°

Libin AK Sating N 3.992°, E 113.9763°

Tandin AK Ajon N 3.995°, E 113.9484°

Rawing AK Sadang N 3.994°, E 113.9476°

Tida AK Samuel N 3.994°, E 113.9492°

Groria AK Ujak N 4.020°, E 113.9480°

Rikai AK Umpoi N 3.991°, E 113.9806°

Tera AK Jilin N 3.997°, E 113.9447°

Lani AK Bangeng N 3.992°, E 113.9785°

Suring AK Jampong N 3.994°, E 113.9452°

Sadi AK Mancha N 3.991°, E 113.9730°

Radin AK Bundong N 3.996°, E 113.9462°

Jenny AK Migam N 3.976°, E 113.9507°

Endit AK Lepong N 3.996°, E 113.9490°





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Forance Nyanggau AK Ludan N 3.985°, E 113.9426°

Jelawai AK Panau N 3.991°, E 113.9766°

Mohamad Zuha Bin Che Hussin N 3.996°, E 113.9463°

Lambang AK Agam N 3.978°, E 113.9488°

Ngitu AK Gerang N 3.985°, E 113.9376°

Non-conformance:

On the basis of the desk review, evidences presented during the audits as well as from the onsite visits non-conformance (NC) Major, Minor and Opportunity for Improvements (OFI) may be raised during the audit.

Major non-conformance shall be addressed and responded with 60 days from closing date of audit. For minor non-conformances action plan to be submitted within 30 days from closing date of audit for review and acceptance. Implementation of Minor NC will be review and verify during the next audit.





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3. ORGANISATION INFORMATION

MPOB Cawangan SPOC Q27 Sibuti 2, is a branch of MPOB located at 1st Floor Survey, Lot 1828 (Sub lot 2), Lot 647, 1223, 1225, Blok 8, Sepupuk 98200 Niah, Sarawak (N 3.8629°, E 113.7151°) is managed by a Group Manager and supported by a team officers to manage the cluster providing technical support, estate management skills and training as well as develop the independent smallholders’ scheme around the Sibuti district.

The locations for the smallholders are in Sibuti, Sarawak as shown in the below maps.

Map number 1





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Map number 2

Map number 3





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Map number 4

Map number 5





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Map number 6

Map number 7





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Map number 8





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4. CERTIFICATION ASSESSMENT

4.1. Surveillance Audit 03

The objective of the audit is to assess the activities of MPOB Cawangan SPOC Q27 Sibuti 2 are in compliance with MS 2530-2: 2013 Part 2: General principles for independent smallholders’ requirements.

4.1.1. Surveillance Audit:

There are 1,141 smallholders for this surveillance audit 03.

There are 568 smallholders remain the same during surveillance audit.

During this surveillance audit, 573 new smallholders join the program.

The surveillance audit is conducted on 16/06/2020 for remote audit and 07/09/2020 to 10/09/2020 for onsite audit that include inspection of the smallholders farms, interviews, conduct stakeholders’ consultation and review of the findings raised in the last audit.

The audit team has applied the Malaysian Sustainable Palm Oil Part 2: General Principles for Independent Smallholders Audit Guidance to assess the establish documents against the Principles and Criteria of the standard.

The details of assessment of the indicators are at the summary of assessment in this report.

During the onsite the following were verified.

1. Compliance to legal requirements on the land title, land use rights and customary rights

2. Training and competence

3. Environmental management

4. Waste management and disposal

5. Best practice – farm management including fertilising, chemical spraying and harvesting.

During the remote audit there are no Major or Minor NC raised. 2 Opportunities for Improvement (OFI) are raised.

During the onsite audit there is no Major or Minor NC raised. 2 Opportunities for Improvement (OFI) are raised.

During this audit, the major non-compliance raised in the last audit and Opportunities for Improvement (OFIs) raised in remote audit, the audit team has review by means of inspection of smallholders’ farms, conduct interviews, review and verify documents that are established, corrected and implemented appropriately by the SPOC team. The corrective measures implemented could be verified as appropriate.

For details of the assessment, refer summary of assessment for each indicator in section 4.3 of this report.

The number of audit findings raised in this audit refer to Section 4.6 of this audit report.





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4.2. Stakeholders’ Consultation

TUV NORD (Malaysia) Sdn. Bhd., has published the public notification on 03/08/2020 as to accommodate stakeholder’s consultation meeting for MPOB Cawangan SPOC Q27 Sibuti 2 to provide comments. As at onsite audit date on 16/06/2020 there are no comments received.

Invitation letters are sent on 04/08/2020 to invite relevant stakeholders to communicate with audit team to gather information from the local communities via phone called and email in accordance to §7, 3.2 of the Certification Procedure requirements.

The topics of discussion are as below:

a. Introduction of objectives of MSPO standard certification for smallholders.

b. Development of smallholders farms in area;

c. Wildlife management area and impact to the smallholders;

d. Environmental issues on the impact of river contamination;

e. Type of wildlife around area;

f. Support from processing palm oil mills at area/

There are no issues raised during the stakeholders’ consultation that need to be addressed by the SPOC management office.

It can be concluded the relevant Principles and Criteria clauses of the applied standard are in compliance.

The List of Stakeholders who attended the meeting refer to table 7.1.

Item Subject discussed Remote audit team finding Comments or Feedback to SPOC

1 Any information from Group Manager for MSPO audit?

Stakeholders are aware regarding the MSPO awareness and able to demonstrate in term of social, environment and safety & health

No action required

2 Social issues Interview stakeholders are not local communities. Therefore, no input of this topic.

No action required

3 Understanding of Land Title – Native, Customary Land, Freehold, Leased, Land application (LA)

Interview stakeholders are not local communities. Therefore, no input of this topic.

No action required

4 Economy / Livelihood

Is there any impact on livelihood after the introduction of MSPO?


No action required

5 Does MSPO largely benefits the local communities?


No action required





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6 Any environment awareness provided by SPOC


No action required

7 Any wildlife awareness by SPOC


No action required

8 FFB quality There are no issues as regards to FFB quality since smallholders are aware on the ripeness standard by MPOB guideline.

Positive comments towards SPOC Q27 Sibuti 2

9 Are there any plantation or mill management practices that affect you?


No action required

10 Do you consider any management conflict with the MSPO principles and criteria?


No action required

11 Do you have any suggestions for SPOC management?


No action required

12 Any suggestions No suggestion No action required

4.3. Summary of Assessment

Principle and Criteria Assessment Summary

The assessment team conduct a thorough assessment of each principle and criteria. Over the 5 years’ period of the certificate cycle, there will be 4 annual surveillance audits all criterions will be assessed. Evidences are sought for conformity with the MSPO 2530-2. The summary of the assessment is as below, where the “Findings/Comments” column reflects the findings in accordance with each criteria and indicator or evidences and when non conformity is found. Summary of the non-conformity can be found below

Principle 1: Management Commitment & responsibility

Indicator Summary of Assessment Compliance

4.1.1.1 SPOC Q27 Sibuti 2 established MSPO Policy document number MSPO/SSCC/POLISI-01 (rev 1) dated 01/07/2019 signed by Group Manager and displayed at the noticeboard.

During onsite and review on smallholders file copy of application form is available.

Interview with smallholders informed they are aware on the MSPO policy.

Yes

4.1.2.1 SPOC Q27 Sibuti 2 adopted List of Social and Environmental Impact and action plan, document number MSPO/SSCC/l-04/ISP, revision 03, issue 03 dated 01/06/2020.

The table include topic on activity, social impact and improvement plan.

Yes





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Principle 1: Management Commitment & responsibility


4.1.2.2 SPOC Q27 Sibuti 2 provide latest Warta Sawit 2019 to smallholders through MSPO training and LKN visit.

Onsite interview with smallholders informed they obtained GAP, new information and Warta Sawit from Group Manager SPOC Q27 Sibuti 2 during the MSPO training and LKN visit on 30/01/2020 and 10/03/2020.

Onsite interview with smallholders informed Group Manager SPOC Q27 Sibuti 2 provide new information to smallholders with regards to Covid-19 prevention and precautions matters on 14/07/2020 and 16/07/2020.

Yes

Principle 2: Transparency


4.2.1.1 SPOC Q27 Sibuti 2 adopted Guidelines for Economic and Financial Power Plans “Garis Panduan Pelan Daya Ekonomi dan Kewangan, document number MSPO /SSCC/GP-01/PEK, revision 03, issue 03 dated 01/06/2020.

FFB selling records includes;

i. Date

ii. Amount

iii. Price per Mt

The guideline include flow chart describing the step approach for delivery of FFB to ramp operator / collection centre or mill with the type of documents.

i. FFB delivered to ramp/ collecting center / mill

ii. Sales receipt

iii. Weighbridge ticket

iv. To kept all the FFB sales and delivery. To be recorded in BRL

v. SPOC Group Manager will collect records and prepare FFB production summary

SPOC Q27 Sibuti 2 conducted MSPO internal audit dated 16/01/2020 by MPOB HQ Officer include old and new members.

The internal audit results with 4 non-conformities and 1 opportunity for improvements.

There are no findings raised on traceability during the internal audit.

Yes

4.2.1.2 SPOC Q27 Sibuti 2 established smallholders FFB records year 2019 and 2020.

Review sales records kept by SPOC Q27 Sibuti 2 Group Manager consist of summary of deliveries and sales invoice from mills or collecting centers to smallholders.

Yes





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Principle 2: Transparency


Onsite interview smallholders informed FFB sales and delivery records available and kept copy.

Principle 3: Compliance to legal requirements


4.3.1.1 SPOC Q27 Sibuti2 adopted Senarai Keperluan Undang – undang document no MSPO/SSCC/L-01/SKU, revision 04, Issue 03 with effective date 01/06/2020.

Example list stated :

i. Pesticides Act 1974 (Act 149)

ii. Children and Young Persons (Employment) Act 1966 (Act 350)

iii. Occupational Safety and Health Act 1994 (Act 514)

iv. Prevention and Control of infectious Diseases (Measures within Infected Local Areas) (No.7) Regulation 2020

Awareness training of laws and regulation conducted apart of Program Kursus Bengkel MSPO 2019 by Jabatan Tanah dan Survey and Jabatan Hutan dated 07/08/2019.

During site visit, review on smallholder’s personal files sighted copy of MPOB licence kept in file and database.

Interview with smallholders informed they are aware on the law and regulation such as no open burning and no hunting wild animals.

Yes

4.3.2.1 SPOC Q27 Sibuti 2 smallholders land titles are either freehold or NCR land.

Land use: Agricultural purposes

Yes

4.3.3.1 Smallholders individual files are reviewed, there are 2 types of land titles as follows:

i. Freehold

ii. NCR land

Freehold land titles issued by Superintendent of Lands & Surveys Sarawak, Miri Division.

The NCR land titles are acknowledged by “Tuai Rumah”

Yes

4.3.3.2 Smallholders individual files are reviewed, maps in the freehold land titles and NCR land titles are available.

Maps in freehold land titles consist of information such as scale of the map, new lot number and old lot number.

Maps in NCR land titles acknowledged by “Tuai Rumah” consist of information such as road name and location of the field.

Yes





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Principle 3: Compliance to legal requirements


Onsite visit observed drains and wooden pegs are install as boundary markers.

Principle 4: Social Responsibility, health, safety and employment conditions


4.4.1.1 SPOC Q27 Sibuti 2 adopted MPOB Complaint & Grievance guideline and flow chart, doc. no. MSPO/SPOC/SOP-01/AR, issues 03, revision 2 dated 01/06/2020.

The procedure include:

i. Complaint and grievance form, document no. MSPO/SPOC/F-01/AR

ii. Complaints and grievance action taken record

Complaint and grievance to be resolved within 14 days as describes in procedure.

SPOC Q27 Sibuti Group Manager is responsible person to handle and resolve incoming complaints.

Briefing on the SOP conducted by SPOC Q27 Sibuti 2 Group Manager on 07/08/2020, 10/03/2020, 30/01/2020 and 18/12/2019.

During onsite visit, review on the complaint record SPOC Q27 Sibuti 2 there are no complaints received from smallholders as of audit date.

Interviewed smallholders informed on awareness of grievance procedure.

Yes

4.4.1.2 SPOC Q27 Sibuti 2 adopted MPOB Complaint & Grievance guideline and flow chart, doc. no. MSPO/SPOC/SOP-01/AR, issues 03, revision 2 dated 01/06/2020.

The complaint and grievance has a table listing the activities to resolve any complaints.

The group manager is the responsible person to handle and resolve any complaints.

The flow chart in the SOP describes the normal complaint process is to be resolved within 14 days. If the complainant is not satisfied with the action taken the complaint will extend another 10 days for the response.

SOP described if complaint received not under the jurisdiction of group manager it will refer to relevant party or MPOB HQ to handle the matter.

Onsite interviewed with smallholders informed they aware on grievance procedure.

Yes

4.4.2.1 SPOC Q27 Sibuti 2 adopted MPOB Guidelines Occupational Safety and Health guideline, document no. MSPO/SPOC/GP-02/KKP issue: 3 dated 01/06/2020.

Scope of the guideline describes:

Yes





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Responsibilities of the GM and smallholders / workers.

Safety work practice for chemical spraying, harvesting and fertilizer application.

Smallholders are briefed during MSPO awareness programme conducted on 07/08/2020, 10/03/2020, 30/01/2020 and 18/12/2019.

SPOC Q27 Sibuti 27 established Training programme dated 15/06/2020 include planning on briefing for infectious disease.

Onsite interviewed with smallholders informed they are aware on safe work practices especially for chemical and fertilizer application activity.

Smallholders informed they will use personnel protective equipment such as rubber glove, apron, safety eyes shield, face mask and safety boot before application.

With regards to Covid-19 matter, smallholders informed that GM SPOC Q27 Sibuti 2 informed on awareness on health matters related to Covid-19.

SPOC Q27 Sibuti 2 Group Manager conduct briefing on 14/07/2020 and 16/07/2020.

4.4.3.1 SPOC Q27 Sibuti 2 adopted MPOB ”Syarat Mengupah Pekerja DI Kebun Sawit guideline document no: MSPO/SPOC/SMP-01, rev-01 for hiring of field workers by smallholders.

The document describe the requirements for hiring of workers.

SPOC Q27 Sibuti 2 adopted ”Terma Penggajian Pekerja”, guideline document no: MSPO/SPOC/TPP-01, rev-01 describes rate for specific field work paid to the workers: Example:

i. Oil Palm harvesting (RM/mt)

ii. Fertilizer application (RM/beg)

iii. Chemical spraying (RM/acre)

iv. Pruning (RM/trees)

Onsite interview with smallholders informed that no hiring of casual workers. All field operations will be operate by own family or “gotong royong” in long house.

Yes

4.4.3.2 SPOC Q27 Sibuti 2 adopted MPOB ’Syarat Mengupah Pekerja Di Kebun Sawit”, guideline document no: MSPO/SPOC/TPP-01, rev-01 describes to provide equal opportunity and treatment regardless of race, religion, colour, sex, political affiliation, nationality, social origin and shall not engage in or support discriminatory practices.


Site visit and interview with smallholders informed no discrimination occurs. Smallholders aware about the policy on discrimination.

Yes





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4.4.3.3 SPOC Q27 Sibuti 2 adopted MPOB ’Syarat Mengupah Pekerja Di Kebun Sawit”, guideline document no: MSPO/SPOC/TPP-01, rev-01 describe the payment method to the casual workers.

Onsite interviewed with smallholders informed that no hiring of casual workers. All field operations will be operate by own family or “gotong royong” in long house.

Yes

4.4.3.4 No living quarters observed during site visit to smallholders field. Yes

4.4.3.5 SPOC Q27 Sibuti 2 adopted MPOB ”Terma Penggajian Pekerja”, MPOB guideline document no: MSPO/SPOC/SMP-01, rev-01 for hiring of field workers by smallholders.

The guideline document describes the requirement for children and young person as follows:

i. Point no 2. Not at all allow / hire children under the age of 15 years.

ii. Point no 3. Does not at all allow/hire young people under the age of 15-18 to perform heavy work in the field.


There is no hiring of children as worker from the interview with smallholders and no child labour found during the field visit.

All field operations will be operate by own family or “gotong royong” in long house.

Yes

4.4.4.1 SPOC Q27 Sibuti 2 established Training plan year 2020 updated on 15/06/2020.

Training plan include briefing and training to be conduct for smallholders as follow:

i. MSPO briefing for new members

ii. LKN visit for old and new members

iii. Internal stakeholder meeting

LKN visits briefing on topics of environmental, good agricultural practices for smallholders, safety and health which include briefing for infectious diseases such as Covid 19.

SPOC Q27 Sibuti 2 Group Manager conduct briefing with regards to Covid-19 matter on 14/07/2020 and 16/07/2020.

Onsite interviewed with smallholders informed they obtain the knowledge of GAP during briefing conducted by Group Manager andLKN visit.

Yes





Audit Type: ASA 03


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Principle 5: Environment, natural resources, biodiversity and ecosystem services


4.5.1.1 SPOC Q27 Sibuti 2 establish List of Social and Environmental impact and action plan, document number MSPO/SSCC/l-04/ISP, revision 03, issue 03 dated 01/06/2020.

Example:

Activity: Chemical spraying and manuring

Environmental impact: Chemical application on buffer zone area and near water source may cause water pollution.

SPOC Q27 Sibuti 2 conducted training for smallholders on environmental impact on 10/03/2020.

Onsite interviewed with smallholders informed they aware on protection of environment especially protection on wildlife and buffer zone.

Yes

4.5.2.1 Onsite visit observed there are no renewable energy used by SPOC Q27 Sibuti 2 smallholders.

Yes

4.5.3.1 SPOC Q27 Sibuti 2 adopted MPOB guidelines for Managing Scheduled Waste, document no: MSPO/SSCC//SOP-03/BT, revision 01, issue 03 dated 01/06/2020.

The list consist of:

Waste generated from agricultural inputs: Fronds

Waste generated not from agricultural inputs: Empty chemical containers

Onsite interviewed with smallholders informed they are aware that empty chemical containers can be recycle and reused after triple rinsing.

Smallholders reused empty fertilizer bag for loose fruit collection.

Interview with smallholders informed that empty chemical container will be disposed to the designated landfill after triple rinse, punctured and labeled with ‘x’ if not reused for chemical spraying activity.

Yes

4.5.3.2 SPOC Q27 Sibuti 2 adopted MPOB guidelines for ‘Pengendalian dan Perlupusan Bahan Kimia’, doc no: MSPO /SSCC/SOP-03/BT, revision 01, issue 03 dated 01/06/2020.

SOP describes to monitor and ensure the waste management process and disposal of waste for responsible individuals can be implemented in an orderly, efficient and safe manner.

Onsite interviewed with smallholders informed they are aware that empty chemical containers need to rinse 3 times before disposed or reused.

There are no chemical containers sighted during field visits.

Yes

4.5.4.1 SPOC Q27 Sibuti 2 adopt MPOB guidelines ‘Garis Panduan Zon Penampan Sungai’, document number: MSPO/SSCC/GP-03/ZPS, issue 03 dated 01/06/2020.

The guidelines describes the responsibility of smallholders to take care of environmental at the buffer zone from polluting by a chemical.

Yes





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Principle 5: Environment, natural resources, biodiversity and ecosystem services


SPOC Q27 Sibuti 2 adopt MPOB guidelines ‘Garis Panduan Pelan Daya Ekonomi Dan Kewangan’, document number: MSPO/SSCC/GP-01/PEK, revision 03, issue 03 dated 01/06/2020.

Point 3 of guideline describes pruning arrangement of frond at the contour of the terrace and between rows at the flat area, to retain the water and soil conservation.

SPOC Q27 Sibuti 2 conducted training for smallholders on environmental impact on 10/03/2020.

During site visit no blanket spraying was detected.

Onsite interviewed with smallholders indicate they are aware and implemented correct spraying activities which not used of class I chemical for spraying.

4.5.4.2 SPOC Q27 Sibuti 2 smallholders practice rain harvesting for field operations using empty drums and pits.

Yes

4.5.5.1 SPOC Q27 Sibuti 2 has conducted training for smallholders dated 10/03/2020 by Jabatan Hutan on topics as below:

i. Legal requirement related to Widllife Protection Ordinance 1998.

ii. List of protected plants and wildlife in Sarawak.

iii. Environmental protection.

A poster of totally protected wildlife of Sarawak is displayed at MPOB SPOC Q27 Sibuti 2 office.

Example:

i. Pangolin

ii. Sun bear

iii. All owls

Site interview with smallholders informed they observe monkey and squirrels which crossed their field.

Yes

4.5.6.1 SPOC Q27 Sibuti 2 adopted MPOB Guidelines Garis panduan Amalan Pembakaran Sifar doc no: MSPO/SPOC/GP-04/APS, revision 01, issue 03 dated 01/06/2020.

The SOP describe:

To ensure smallholders aware of environmental impact by practicing zero burning.

SPOC Q27 Sibuti 2 conducted training for smallholders on environmental impact during MSPO awareness training dated 07/08/2020, 10/03/2020, 10/03/2020 and 30/01/2020.

Site visit at smallholders field observe no open burning occur in the field and smallholders are aware that open burning is restricted by the Sarawak state law.

Yes





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Principle 6: Best Practices


4.6.1.1 SPOC Q27 Sibuti 2 briefed on Good Agriculture Practice (GAP) to smallholders during MSPO programme on 07/08/2020, 10/03/2020, 30/01/2020 and 18/12/2019.

Onsite visit interviewed smallholders indicate they understand on GAP.

Smallholders informed, after pruning or harvesting, the frond will be arrange in one straight line. Fertilizer will be apply on the fronds instead around the palm tree where the roots of the palm tree are under the fronds.

Yes

4.6.1.2 During site visit observed SPOC Q27 Sibuti 2 establish visual identification for each smallholder with information of name, lot no. GPS coordinates lot size and year of planting.

Yes

4.6.2.1 SPOC Q27 Sibuti 2 adopted MPOB guideline, Garis Panduan Pelan Daya Ekonomi dan Kewangan, document number: MSPO/SPOC/GP-01/PEK, issue 3, no. revised. 03 dated 01/06/2020.

All other operations budget and cost are under control of MPOB HQ.

MPOB HQ has allocated budget combine with SPOC Q27 Sibuti 1 and 2 on training and field visit dated 21/08/2019.

Yes

4.6.3.1 SPOC Q27 Sibuti 2 monitors FFB pricing on monthly basis through input from selected mills/ ramps or dealers for fair price.

During site visit and interviewed with smallholders informed the FFB price is display at main entrance on the palm oil mill or collecting centre or through phone via WhatsApp group.

Yes

Principle 7: Development of new planting


4.7.1.1 SPOC Q27 Sibuti 2 smallholders database is review with 1st planting in 1989 and latest replanting in year 2019.

There are no new plantings for old members and new members.

Therefore, no data captured.

Yes


There are no new planting for old members and new members.

Therefore, no soil type available.

Yes


There are no new planting for old members and new members.

Therefore, no data for type of terrain available.

Yes





Audit Type: ASA 03


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4.4. Status of Non-Conformities Previously Identified

The stage 1 audit findings of this system have been reviewed, in particular to assure appropriate correction and corrective action HAS implemented to address identified audit findings. Details of the follow up action taken on stage 1 audit findings were recorded in the Stage 1 audit report.

X The last audit results of this system have been reviewed, in particular to assure appropriate correction and corrective action HAS implemented to address any nonconformity identified.

The last audit results of this system have been reviewed, in particular to assure appropriate correction and corrective action HAS NOT been implemented effectively. Non-conformity will be re-raised.

Not applicable. No non-conformity raised in previous audit.

Note 1: If a minor non-conformity raised in last audit, is not closed out, then this finding will be re-raised to a Major non-conformity.

Note 2: All minor NCs raise in last audit are required to capture in this report together with the closing of the non-compliance.

4.5. Detail of Audit Findings in last audit

AUDIT OUTCOME

During last Audit 2 MAJOR Non-Conformities

0 MINOR Non-Conformities

Non Conformity Number 1

Indicator # and Description:

4.3.2.1 Independent smallholders shall demonstrate rights to their landholdings and there is no evidence of major land disputes.

Location: SPOC Q27 Sibuti 2

Description of Finding / Objective Evidence:

During smallholders file review several of the smallholders do have map not signed or authorized by the Tuai Rumah.

Classification Major Minor

Raise by: Muhammad Khairul Anuar bin Azizul Hasan Date Raise: 11/04/2019

Deadline for implementation 11/06/2019

Root Cause Analysis (by company):

Because of limited time for preparing MSPO audit, group manager are overlook on this matter for several smallholder.

Correction (by company):

i. Group manager identify smallholder who does not provide the map and not signed/authorized by the Tuai Rumah for verification land owner maps/location. (attachment 1)

ii. Immediate action have taken by asking the tuai rumah/ketua kampung to verify the smallholder that have no authorization in their map. (Attachment 2 & 3)

Corrective / Preventive Action (by company)





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Group manager will give the complete MSPO example form which included on the map authorization to the “Ketua Kampung” or “Tuai Rumah” (Attachment 4 & 5), at the same time group manager will brief to the smallholder on MSPO requirement on land verification.

Review of Correction & Corrective / Preventive Action

Group manager has provided the evidence of land verification of affected smallholders by provides the maps and has completely authorized by the Tuai Rumah. Annex (2 & 3) are reviewed and considered sufficient to close the NC. Further verification will be conducted in the next surveillance audit.

Closed: Yes No Site verification : Yes No

Name of Auditor:


Date of Closure:

16/06/2020

Review of Implementation

During onsite verification, review on old and new smallholder’s individual file sighted NCR land titles with map verified by Tuai rumah.

It could be considered implemented appropriately.

Name of Lead Auditor in training:

Chan Shi Lie

Date of Review:

10/09/2020


Indicator # and Description:

4.4.3.3 Independent smallholders shall ensure that worker’s pay and conditions meet legal standards as per mutual agreements.

Location: SPOC Q27 Sibuti 2

Description of Finding / Objective Evidence:

Agreement ‘Terma Perjanjian Penggajian Pekerja’ had agreed and signed by both smallholder and permanent foreign workers. However, there is no evidence of monthly payment recorded in the BRL as stated in the document Syarat – syarat mengupah pekerja di kebun to indicate payment has been made.

Classification Major Minor

Raise by: Sheron Pui Ling Wui Date Raise: 11/04/2019

Deadline for implementation 11/06/2019

Root Cause Analysis (by company):

Group manager and smallholder are not aware payment shall be recorded accordingly.

Correction (by company):

i. Group manager will identify the smallholders who had a workers and will mark at database.

ii. Group manager will brief smallholders on requirements Syarat-Syarat Mengupah Pekerja di Kebun on Latihan Khidmat Nasihat.

Corrective / Preventive Action (by company)

i. Group manager will identify the smallholders who had a workers and will mark at database.

ii. Group manager will brief smallholders on requirements Syarat-Syarat Mengupah Pekerja di Kebun on Latihan Khidmat Nasihat.





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Review of Correction & Corrective / Preventive Action

Records of payments from smallholders to their workers has been made accordingly as per agreement sighted. The evidence provided in (attachment 7) is sufficient to close the NC. Further verification will be conducted in the next surveillance audit.

Closed: Yes No Site verification : Yes No

Name of Trainee Lead Auditor:


Date of Closure:

07/05/2019

Review of Implementation

During onsite verification, interview with smallholders informed they understand when hiring casual workers the payment rate could be agreed verbally prior to commence of work.

Smallholders informed they are not hiring casual workers for field activities. All field activities operate by own family basis or “gotong royong”.

It could be considered implemented appropriately.

Name of Trainee Lead Auditor:

Chan Shi Lie

Date of Review:

16/06/2020

4.6. Detail of Audit Findings Identified During This Audit

This section gives an overview of the non-conformities raised during this audit.

REMOTE AUDIT OUTCOME

During this remote audit,

0 MAJOR Non-Conformities


Nr. Indicator Description Location Opportunity for Improvement

1 4.1.2.1 The action plan for continual improvement shall be based on the consideration for the main social and environmental impact and opportunities of the independent smallholder’s group, such as SPOC. Independent smallholders shall be aware of the need to understand the importance of continuous improvement.

SPOC Q27 Sibuti 2

SPOC Q27 Sibuti 2 may consider improve CIP on Prevention and Control of Infectious Diseases (Measure within Infected Local Areas) (No.7) Regulation 2020.





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2 4.4.2.1 Independent smallholders need not have a formal health and safety plan but shall ensure that all work practices are safe.

SPOC Q27 Sibuti 2

SPOC Q27 Sibuti 2 may consider improve the health and safety awareness.

The OFIs are verified during onsite audit and implemented appropriately.

ON-SITE AUDIT OUTCOME

During this onsite audit,

0 MAJOR Non-Conformities



1 4.4.1.1. Independent smallholders shall be able to respond to complaints that are raised by their neighbours or other stakeholders.

SPOC Q27 Sibuti 2

SPOC Q27 Sibuti 2 may consider improve smallholders awareness on complaint and grievance procedure.

2 4.5.3.2 Independent smallholders shall ensure that waste from the smallholdings is disposed of appropriately. Smallholders shall adopt local and national legislation to dispose of hazardous chemicals and their containers.Independent smallholders shall ensure that waste from the smallholdings is disposed of appropriately. Smallholders shall adopt local and national legislation to dispose of hazardous chemicals and their containers.

SPOC Q27 Sibuti 2

SPOC Q27 Sibuti 2 may consider improve smallholders awareness on scheduled waste management.





Audit Type: ASA 03


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5. CONCLUSION

Malaysia Palm Oil Board has commissioned TÜV NORD (Malaysia) Sdn Bhd to carry out the certification for the Sustainable Palm Oil Cluster (SPOC) for SPOC Q27 Sibuti 2 consisting of 1,141 independent smallholders according to MS 2530-2:2013 Part 2, General Principles for Independent Smallholders.

There are no findings raised in this audit.

From the review of the standard operating procedures, relevant forms, work flow charts established and implemented; the subsequent background investigation and interviews conducted during this surveillance audit have provided TUV NORD (Malaysia) with sufficient evidence on the fulfilment of the applied standard Principles & Criteria.

In conclusion the certified organisation has been established, implement and continue to improve in managing the independent smallholders are in line with the Principles & Criteria of the applied standard MS 2530-2:2013 Part 2 Genenral Principles for Independent Smallholders.

As a result of this audit, the audit team confirms that:

Total certified number of independent smallholders: 1,141

Total certified acreage of smallholders: 7,495.45 Ha

Certified FFBs output January to December 2019: 59,888.39 Mt

Actual FFBs output January to July 2020: 74,043.49 Mt

Projected FFBs output August to December 2020: 62,000.00 Mt





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6. RECOMMENDATION

The audit team conducted a process-based audit focussing on significant aspects / risks and objectives required by the standard(s). The audit methods used are interviews, observations, sampling of activities, review of documentation and records.

Any audit is based on sampling within an organization’s management system and therefore is not guarantee of 100 % conformity with requirements.

The structure of the audit is in accordance with the audit plan included to this summary report as annex.

The audit team concludes that the organisation has established and maintained its management system in line with the requirements of the standard(s) and demonstrated the ability of the system to achieve requirements for production and management within the scope and the organisation’s policies and objectives.

Therefore, the audit team recommends that, based on the results of this audit and the system’s demonstrated state of development and maturity that this management system certification be

Recommended for Certification / Recertification

X Recommended for Continuity of Certification

Suspended of Certification

Puchong, 05/10/2020 Puchong, 05/10/2020

Chan Shi Lie

TUV NORD (Malaysia) Sdn Bhd

Audit Team Leader – In training

Cheong, Chun Yuen (Robert)

TUV NORD (Malaysia) Sdn Bhd

Certifier / Approver





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7. LIST OF INTERVIEWEES

Table 7-1: List of Interviewed Stakeholders

No. Organization

1 KPSM Sibuti Collections Centre

2 Empresa Sdn Bhd Palm Oil Mill





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Distribution / Confidentiality / Rights of ownership / Limitations / Responsibilities / Audit Objectives

This report is sent to the certification body or bodies, the members of the audit team and the audit representative of the organisation. All documents (such as this report) regarding the certification procedure are treated confidentially by the audit team and the certification body. This audit report remains the property of the certification body.

An audit is a procedure based on the principle of random sampling and cannot cover each detail of the management system. Therefore nonconformities of weaknesses may still exist which were not expressly mentioned by the auditors in the final meeting or in the audit report.

The responsibility for continuous effective operation of the management system always rests solely with the audited and certified organisation.

Salvo clause:

The audit report will be left to the organisation at the end of the audit - subject to approval by the certification body. The independent release process may cause modifications or additions. In these cases a modified revision will be sent to the audited organisation.

The objective (goal) of the audit is to establish compliance of the management system of the aforementioned organization with the requirements of the aforementioned standard in order to achieve or maintain certification through an independent and accredited certification body. Identification of possibilities to improve the management system can also be a component of the audit and is considered simply to be an enhancement; it does not constitute consultancy or advice with regard to the management system.

Annex / Enclosures

Annex / corresponding audit documentation

P&C Audit Report / Checklist(s)

Audit Plan

Additional annexes, number

mspo certification summary report - TUV Nord

Documents

Transcript of mspo certification summary report - TUV Nord