RSPO audit Report · 2014. 11. 2. · PADANG PIOL OIL MILL Felda 2013 Report prepared by: Rizal...

RSPO Principles & Criteria Annual Surveillance Assessment Report

Report Number CU826790

RSPOPC-SUM-REPORT.F01 JAN2013 of 32

Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia.

Tel: +603-3377 1600 / 1700

RSPO PRINCIPLES & CRITERIA PUBLIC SUMMARY REPORT

ANNUAL SURVEILLANCE ASSESSMENT 1

Malaysia

PADANG PIOL OIL MILL Felda 2013

Report prepared by: Rizal Kassim (Lead Assessor)

Certification decision by: Hari Naveen Christopher (Certifier)

Certifying Office

Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa,

Off Jalan Sg Bertih, Teluk Gadong, 41100 Klang, Selangor, Malaysia [email protected]

Tel: +603-3377 1600 / 1700

Control Union Certifications Control Union Certifications is a member of the Control Union World Group - an international

inspection and certification body. CUC performs assessments and certification in many agricultural

based fields such as FSC, RSPO, and Organic production, Sustainable Textile Production, Organic

Exchange, GLOBALGAP, HACCP, BRC, GMP and GTP.

CUC is accredited by the Dutch Council of Accreditation (RVA) on the European quality standard EN 45011 for the inspection and certification of CUC Organic program (according to the EU regulation 2092/91) and GLOBALGAP program. When requested a copy of the accreditation certificate can be

obtained from CUC.

RSPO Membership Number 8-0025-06-000-00

RSPO Approval Date 12/01/2006

Affiliate Membership http://www.rspo.org/en/member/339

mailto:[email protected]

http://www.rspo.org/en/member/339





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Table of Contents

PART 1: SCOPE OF THE CERTIFICATION ASSESSMENT AUDIT .............................................................. 4

1.1 COMPANY AND CONTACT DETAILS ....................................................................................................................... 4 1.2 RSPO MEMBERSHIP & CERTIFICATION DETAILS ..................................................................................................... 4 1.3 ANNUAL SURVEILLANCE ASSESSMENT DETAILS ....................................................................................................... 4 1.4 ASSESSMENT TYPE ............................................................................................................................................ 4 1.5 LOCATION OF THE PALM OIL MILL ........................................................................................................................ 4 1.6 PALM OIL MILL OUTPUT AND APPROXIMATE TONNAGES CERTIFIED ............................................................................. 4 1.7 GENERAL DESCRIPTION OF SUPPLY BASE ............................................................................................................... 5

1.7.1 Location of the Supply Base................................................................................................................................. 5 1.7.2 Statistics of the Supply Base and Estimated Tonnes of FFB produced per year ................................................. 5 1.7.3 ....................................................................................................................................................................................... 5 Percentage of Planted Oil Palm by different Age Ranges ..................................................................................................... 5 1.7.4 Calculation of the Number of Production Units (N) to Sample for the Mill ........................................................ 5

1.8 PROGRESS OF ASSOCIATED SMALLHOLDERS OR OUT-GROWERS, IF APPLICABLE TO THIS ASSESSMENT .................................. 5 1.9 LOCATION MAP FOR THIS CERTIFICATION UNIT (SEE APPENDIX 1) .............................................................................. 5

PART 2: PARTIAL CERTIFICATION ........................................................................................................ 6

2.1 MANAGEMENT STRUCTURE................................................................................................................................. 6 2.2 NON-COMPLIANCE IDENTIFIED WITH 2.1 ABOVE ..................................................................................................... 6 2.3 SUMMARY OF THE TIME BOUND PLAN .................................................................................................................. 6 2.4 UN-CERTIFIED UNITS OR HOLDINGS...................................................................................................................... 7 2.5 SUMMARY OF THE FINDINGS FOR PARTIAL CERTIFICATION ....................................................................................... 16 2.6 PARTIAL CERTIFICATION AUDIT AGENDA.............................................................................................................. 16

PART 3: AUDIT PROCESS.................................................................................................................... 17

3.1 ABOUT THE CERTIFICATION BODY ....................................................................................................................... 17 3.2 AUDIT TEAM .................................................................................................................................................. 17

3.2.1 Qualifications of the Lead Auditor ............................................................................................................................... 17 3.2.2 Qualifications of the Assessment Team....................................................................................................................... 17

3.3 AUDIT METHODOLOGY .................................................................................................................................... 18 3.3.1 General Overview .............................................................................................................................................. 18 3.3.2 Assessment agenda for this Audit ............................................................................................................................. 19

PART 4 ASSESSMENT FINDINGS ........................................................................................................ 20

4.1 LEAD ASSESSOR’S SUMMARY AND RECOMMENDATION FOR CERTIFICATION ................................................................ 20 4.2 SUMMARY OF THE FINDINGS BY PRINCIPLES AND CRITERIA ...................................................................................... 20

Principle 1: Commitment to Transparency .......................................................................................................................... 20 Principle 2: Compliance with Applicable Laws and Regulations .......................................................................................... 21 Principle 3: Commitment to Long-Term Economic and Financial Viability .......................................................................... 21 Principle 4: Use of Appropriate Best Practices by Growers and Millers .............................................................................. 21 Principle 5: Environmental Responsibility and Conservation of Natural Resources and Biodiversity .................................. 22 Principle 6: Responsible Consideration of Employees and of Individuals and Communities by Growers and Millers .......... 23 Principle 7: Responsible Development of New Plantings ..................................................................................................... 24 Principle 8: Commitment to Continuous Improvement in Key Areas of Activity .................................................................. 24

4.3 NON-CONFORMITY RAISED DURING THIS AUDIT AND ANY FROM THE PREVIOUS YEAR, IF APPLICABLE ............................. 25 4.4.1 Non-Conformities Identified during this Audit ........................................................................................................... 25 4.4.2 Non-Conformity Identified during the last ASA, not applicable for MA ..................................................................... 25

THE FOLLOWING NC’S WERE RAISED DURING THE LAST AUDIT AND THE STATUS WAS REVIEWED AS INDICATED BELOW. ...................... 25 4.4.3 Observations Raised During this Audit ....................................................................................................................... 27

4.5 ISSUES THAT WERE RAISED DURING THE STAKEHOLDER CONSULTATION, IF ANY ............................................................ 27

PART 5: RSPO SUPPLY CHAIN CERTIFICATION ................................................................................... 28

5.1 POM INCLUDED IN THE SCOPE OF THE AUDIT ...................................................................................................... 28 5.2 CONFIRMATION OF THE COMPANY’S SUMMARY OF ANNUAL CERTIFIED VOLUME OF RSPO CERTIFIED PALM OIL AND PALM

KERNEL OVER A SPECIFIED PERIOD ................................................................................................................................ 28 5.3 SUMMARY REPORT INCLUDING A BRIEF DESCRIPTION OF THE SCOPE OF CERTIFICATION ................................................ 28 5.4 MONTHLY RECORDS OF CERTIFIED FFB, CPO AND PK RECEIVED SINCE THE LAST AUDIT ................................................ 28 5.5 RECORDS OF CERTIFIED CPO & PK SOLD UNDER GREEN PALM TO BUYERS SINCE THE LAST AUDIT, IF ANY ......................... 28 5.6 RECORDS OF CERTIFIED CPO & PK SOLD UNDER UTZ ETRACE TO BUYERS SINCE THE LAST AUDIT, IF ANY .......................... 28 5.7 NON-CONFORMITIES IDENTIFIED DURING THIS AUDIT .............................................................................................. 28





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5.8 DESCRIPTION OF THE ORGANIZATIONAL MANAGEMENT SYSTEMS............................................................................... 29 5.9 FINAL CERTIFICATION DECISION BY CONTROL UNION FOR THE RSPO SCCS AUDIT OF THE POM ...................................... 29

PART 6: CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY ........... 30

6.1 DATE OF NEXT ASA ......................................................................................................................................... 30 6.2 DATE FOR CLOSURE OF NON-CONFORMITIES ........................................................................................................ 30 6.3 SIGNING BY THE CLIENT .................................................................................................................................... 30 6.4 SIGNING BY THE LEAD AUDITOR ......................................................................................................................... 30 6.5 SIGNING BY THE CERTIFIER ................................................................................................................................ 30

PART 7: APPENDICIES ........................................................................................................................ 31

APPENDIX 1: LOCATION MAP FOR THIS CERTIFICATION UNIT ............................................................................................. 31





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PART 1: SCOPE OF THE CERTIFICATION ASSESSMENT AUDIT

1.1 Company and Contact Details

Company Name: Felda Global Ventures Plantation(M) Sdn. Bhd.

Business Address: PSQM Department FGVPM, Tingkat 7, Balai Felda, Jalan Gurney 1, 54000, Kuala Lumpur.

Contact Person: Mr. Norazam Abdul Hameed

Office Telephone: +603-2698 7772

E-Mail: [email protected]

Web Site: www.feldaglobal.com

Other Certifications Held: ISO, ISCC, etc

1.2 RSPO Membership & Certification Details

RSPO Membership Number: 1-0013-04-000-00

Registered Client Name: Felda Global Venture Berhad

Certificate Number: C826790CU-RSPO.01.2013

Start Date Of Certificate: 13 December 2012

End Date Of Certificate: 12 December 2017

Date Of Original Certification: 13 December 2012

Scope: Certification of the Palm Oil Mill and Supply Bases

Type Of Certification: Single site

Duration Of Certificate: 5 Years from date of certification

1.3 Annual Surveillance Assessment Details

Dates Of This Audit: 2ND Sept – 04TH Sept 2013

Audit Number: ASA1

1.4 Assessment Type

This is a RSPO Principles &Criteria Compliance assessment of the palm oil mill and its respective supply bases as listed in this report below.

1.5 Location of the Palm Oil Mill

Name Palm Oil Mill

Mill Capacity

Location GPS Reference

(POM) MT/Hour Address Longitude Latitude

Padang Piol Palm Oil Mill

40 Kilang Sawit Padang Piol, 27040 Jerantut, Pahang.Malaysia.

3o 55.304’ 102o 29.372’

1.6 Palm Oil Mill Output and Approximate Tonnages Certified

Figures below are from:

Only from certified supply bases (Y/N). YES

Combining certified with uncertified supply bases (Y/N). NO

If the Mill is receiving FFB from uncertified supply bases outside the audit scope, such uncertified sources is highlighted under the following sections as seen applicable:

a. PART 1, Section 1.7 – General Description of Supply Base, b. PART 2: Partial Certification, Section 2.4 – Uncertified Units or Holdings, c. PART 5: RSPO Supply Chain Certification of this report

Projected Production from the last 12 Months (MT)

Actual Production for this Audit Year YYYY/YYYY (MT)

Projected 12 Months (MT) Forecast Certified in this Report

FFB CPO PK FFB CPO PK FFB CPO PK

50,331 15,197.47 3,819.28 43,749 11,062.11 2,714.44 54,590 18,200 4,200

mailto:[email protected]

http://www.feldaglobal.com/





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1.7 General Description of Supply Base

All the supply bases are within the region of Jerantut, Pahang. This audit has carried out to ensure full compliance with RSPO requirement. Seen more awareness programs being tabulated for the supply bases in line with RSPO continual improvement.

1.7.1 Location of the Supply Base

OPP

Oil Palm Plantation

Location GPS reference Area Summary (Ha)

Name Address Longitude Latitude Total Mature

OPP1 FELDA Padang Piol

Pej. Felda Pdg Piol, 27010 Jerantut Pahang

30 45’ 38’’ N 1020 33’38’’ E 2,839.06 2,839.06

OPP2 FELDA Sungai Retang

Pej. Felda Sg. Retang, 27010 Jerantut Pahang

30 51’ 24’’ N 1020 29’ 33’’ E 2,120.90 2,120.90

TOTAL 4,959.96 4,959.96

1.7.2 Statistics of the Supply Base and Estimated Tonnes of FFB produced per year

OPP Oil Palm Plantation Estimated FFB/Year (MT) Planting Years Cycle (Years)

OPP1 FELDA Padang Piol 32’390 1968/1996 25

OPP2 FELDA Sungai Retang 22,200 1972/2003 25

TOTAL 54,590 -

1.7.3 Percentage of Planted Oil Palm by different Age Ranges

CU CODE Planting years by 5 year ranges ( % )

Before 1990 1991-1995 1996 - 2000 2001 - 2005 2006-2011 Total (Ha)

OPP1 - - 100% - - 100%

OPP2 - - - 100% - 100%

1.7.4 Calculation of the Number of Production Units (N) to Sample for the Mill

N = 0.8√Y, where “Y” is the number of units, with the result always to be rounded “up” to the next whole integer. Where only a sample of the supply base is assessed, units not previously assessed, or assessed earlier in the certification program, are to be preferred over those more recently assessed

For the Mill, how many units make up the production base?

Owned estates (Y) N = 0.8√Y Smallholders (Z) N = 0.8√Z

2 2 0 0

Explanation as to the selection of estates sampled

Three of the four estates were assessed.

1.8 Progress of associated Smallholders or Out-growers, if applicable to this assessment

Progress of associated Smallholders or Out-growers towards Compliance with relevant Standards - should be in accordance to the 3 year implementation plan, if applicable to this assessment

Not Applicable

1.9 Location Map for this Certification Unit (See Appendix 1)





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PART 2: PARTIAL CERTIFICATION

The rules for partial certification allow organizations that have a majority holding in and / or management control of more than one autonomous company growing oil palm to certify individual management units and / or subsidiary companies subject to certain rules.

2.1 Management Structure

Section Criteria Yes/No If “Yes” If “No”

2.1.1 Is the certified operation (POM and supply base as detailed above) a stand-alone operation and there are no other plantations or mills owned by the same company?

No Section 2

is N/A Go to 2.1.2

2.1.2 Is the certified operation part of a simple structure of operations owned by one company?

Yes Go to 2.1.5

Go to 2.1.3

2.1.3

Are there statements of the ultimate controlling shareholders and directors in the managing agency company/companies: a. Explaining the legal relationship and the management

arrangements with the subsidiary companies and / or with any operating groups?

- Go to 2.1.4

Go to 2.2.1

2.1.4 b. A statement of commitment to complying with the spirit of

the RSPO for all companies and subsidiaries involved with the growing of oil palm and for the production of palm oil?

- Go to 2.4 Go to 2.2.2

2.1.5 Is there a time bound plan in place for all subsidiaries, estates and palm oil mills?

Yes Go to 2.3 2.2.3

2.1.6 Is the parent company or one of its majority owned and / or managed subsidiaries a member of RSPO.

Yes

2.2 Non-compliance Identified with 2.1 Above

Section Non-compliance findings NC raised Category

2.2.1 There is no explanation as to the company’s structure and therefore it Is not possible to conduct an effective audit against the rules for partial certification.

- Major

2.2.2 There is no statement of commitment to complying with the spirit of the RSPO for all companies within the company structure.

- Major

2.2.3 There is no time bound plan in place for the certification for all subsidiaries, estates and mills.

- Major

2.2.4 No applicable membership of the RSPO. - Major

2.3 Summary of the Time Bound Plan

Section Requirement Findings and any action required Compliance

2.3.1 Does the plan include all subsidiaries, estates and mills?

Yes, the plan includes all subsidiaries, estates and mills. Yes

2.3.2 Is the time bound plan challenging? Age of plantations. Location. Mill development. Infrastructure. Compliance with

applicable law.

The company presented a table showing how the certification audits are planned to fit into the period ending and it is considered to be challenging plan (see time bound plan below)

Yes

2.3.3 Have there been any changes since the last audit? Are they justified?

Have some unit is already certified see as below time bound plan

Yes

2.3.4 If there have been changes, what

Have change in the time bound plan with already certified and in progress audit

Yes





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circumstances have occurred?

2.3.5 Have there been any stakeholder comments?

No comment receive Yes

2.3.6 Have there been any newly acquired subsidiaries?

Yes will adhere to new planting procedure once finalise Yes

2.3.7 Have there been any isolated lapses in the implementation of the plan?

No currently being a year advance Yes

2.3.8 Has there been any systematic failure to proceed with the implementation of the plan?

no Yes

2.3.9 General statement as to progress made since the last audit?

Felda is following the time bound plan accordingly.

Yes

2.4 Un-Certified Units or Holdings

NOTE: Companies may demonstrate compliance by clear evidence of a self-audit (i.e. an internal audit for all subsidiaries, estates and Palm Oil Mills)

Section Requirement Findings and any action required Compliance

2.4.1 Did the company conduct an internal audit? If so, has a positive assurance statement been produced?

Yes. Yes

2.4.2 No replacement after dates defined in NIs Criterion 7.3 of:

Primary forest.

Any area identified as containing High Conservation Values (HCVs).

Any area required to maintain or enhance HCVs in accordance with RSPO criterion 7.3.

No replacement of primary forest and HCV. Yes

2.4.3 Any new plantings since January 1st 2010 must comply with the RSPO New Plantings Procedure.

No new planting up to this period of assessment. However, as explained in partial findings at table 2.5, Felda will adhere to new planting procedure when necessary.

Yes

2.4.4 Any Land conflicts are being resolved through a mutually agreed process, e.g. RSPO Grievance procedure or Dispute Settlement Facility, in

None noted. No stakeholder comments or complaints received.

Yes





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accordance with RSPO criteria 6.4, 7.5 and 7.6.

2.4.5 Any Labor disputes are being resolved through a mutually agreed process, in accordance with RSPO criterion 6.3.


Yes

2.4.6 Any Legal non-compliance is being resolved in accordance with the legal requirements, with reference to RSPO criteria 2.1 and 2.2.


Yes

TIME BOUND PLAN FORECAST FOR RSPO CERTIFICATION OF ALL PALM OIL MILLS & SUPPLY BASES

s/n Palm Oil Mill Country Supply Bases (estates, plantations, associations)

Targeted RSPO Certification Year

Current Certification Status as per this Audit

1 Kota Gelanggi 1 Malaysia

Felda Kota Gelanggi 1 Felda Kota Gelanggi 2 Felda Kota Gelanggi 3 Felda Kota Gelanggi 4 Felda Kota Gelanggi 5/6

2010 Certified

2 L. Utara 6 Malaysia

Felda Lepar Utara 3 Felda Lepar Utara 7 Felda Lepar Utara 8 Felda Lepar Utara 9 Felda Lepar Utara 11

2010 Certified

3 Jengka 21 Malaysia

FTP Jengka 13 FTP Jenderak Selatan FTP Jenderak Utara F Jengka 1 FTP Sg. Tekam Utara F Jengka 24/25 FAS Jengka 24/25 FAS PPPTR/UKA

2010 Certified 14.01.2013 BSI

4 Jengka 3 Malaysia

FTP Jengka 2 FTP Jengka 3 FTP Jengka 5 FTP Ulu Jempol FTP Jengka 4 FTP Jengka 6 FTP Jengka 7 F Bukit Tajau

2010 Certified 13.12.2012 CUC

5 Jengka 8 Malaysia

F Sg. Tekam FTP Jengka 8 FTP Jengka 9 FTP Jengka 10 FTP Jengka 11 FTP Jengka 12






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6 L. Utara 4 Malaysia

F Lepar Utara 2 FAS Lepar Utara 10 F Lepar Utara 1 F Lepar Utara 4 FP Lepar Utara 5 FP Lepar Utara14


7 Jengka 18 Malaysia

FTP Jengka 18 FTP Jengka 19 FTP Jengka 21 FTP Jengka 22 FTP Jengka 23 FTP Sg. Nerek F Jengka 20 F Kg. Awah FTP Jengka 14 FTP Jengka 15 FTP Jengka 16 FTP Jengka 17


8 Padang Piol Malaysia FTP Padang Piol FTP Sg. Retang


9 Segamat GC Malaysia 2010 Certified 13.06.12 Sirim. Suspended.

10 Adela Malaysia FTP Sg. Mas, FTP Sening FTP Adela

2011

Certified under TUV Has been suspended. Has lifted up date on 15.July 2013

11 Lok Heng Malaysia

FTP Air Tawar 2 FTP Papan Timur FTP Aping Barat F Lok Heng Barat F Lok Heng Selatan F Lok Heng Timur

2011

Certified under TUV Has been suspended. Has lifted up date on 15.July 2013

12 Semenchu Malaysia

F Pasak F Semencu F Air Tawar 1 F Air Tawar 3 F Air Tawar 4 F Air Tawar 5

2011 Certified 25.07.2012 SGS

13 Waha Malaysia

F Aping Timur FTP Bukit Wa Ha FTP Simpang Wa Ha FTP Bukit Easter

2011 Certified on 21.05.2012 Agrovet

14 B. Kepayang Malaysia

FP Terapai 3 FTP Kepayang FTP Mayam FTP Kumai

2011 Certified 7.01.2013 Sirim

15 Bukit Mendi Malaysia

FTP Bukit Mendi FTP Bukit Puchong F Mengkuang F Sg Kemahal FTP Chemomoi

2011 5.10.2012 Moody

16 Kemasul Malaysia FP Mengkarak 1 FP Mengkarak 2

2011 Certified





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FTP Kemasul

17 Tementi Malaysia

FP Bera Selatan 1 FP Bera Selatan 4 FTP Purun FTP Sebertak FTP Rentam FTP Tementi

2011

Approve by RSPO Certificate not yet issue. By Sirim

18 Palong Timor Malaysia

FTP Palong Timur 1 FTP Palong Timur 2 FTP Palong Timur 3 FP PALONG TIMUR 04 FP PALONG TIMUR 05 FP PALONG TIMUR 06 FP PALONG 17 FP PALONG 18 FTP Palong 1 FTP Palong 2 FTP Palong 3 FTP Palong 4 FTP Palong 5 FTP Palong 6 FTP Pasir Besar

2012 2013

19 Triang Malaysia

FP Triang 2/4 F Triang 1 F Triang 3 FP Triang Selatan 1

2012 Certified

20 Belitong Malaysia

F Bukit Tongkat F Ulu Belitong F Bukit Permai F Layang-Layang F Air Hitam FAS Ulu Belitong

2012 Audit 2012

21 Bukit Besar Malaysia FTP Pasir Raja FTP Bukit Besar FTP Bukit Ramun

2012 Audit in 2012

22 Kahang Malaysia FTP Kahang Barat FTP Kahang Timur FTP Ulu Dengar

2012 Audit 2012

23 Kulai Malaysia

FTP Taib Andak FTP Bukit Batu FTP Ulu Tebrau FTP Sg. Tiram FAS Bkt Besar/Taib Andak

2012 Audit in 2012

24 Nitar Malaysia F Nitar 1 F Nitar 2 FP Nitar Timur

2012 Audit 2012

25 Penggeli Malaysia

FP Inas Selatan F Inas Utara FTP Sg. Sibol FTP Sg. Sayong FTP Penggeli Timur FTP Linggiu F Tunggal F Ulu Penggeli

2012 Audit in 2012





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26 Baiduri Ayu Malaysia

FP Sahabat 9 FP Sahabat 15 FP Sahabat 16 FP Sahabat 55 F Sahabat 1 F Sahabat 2

2013 2013

27 Embara Budi Malaysia

FP Sahabat 11 FP Sahabat 12 FP Sahabat 13 FP Sahabat 17 FP Sahabat 56 F Sahabat 3 F Sahabat 4 F Sahabat 5 F kledang

2013 2014

28 Kembara Sakti Malaysia

FP Sahabat 42 FP Sahabat 43 FP Sahabat 53 FP Sahabat 54

2013 2014

29 L. Kemudi Malaysia

FP Sahabat 10 FP Sahabat 39 FP Sahabat 44 FP Sahabat 38 FP Sahabat 45

2013 2014

30 Bukit Sagu Malaysia

FP Bukit Sagu 4 FP Bukit Sagu 6 FP Bukit Sagu 7 FP Bukit Sagu 8 F Bukit Sagu 2 F Bukit Sagu 1 F Bukit Sagu 3

2013 Audit 2012

31 Lepar Hilir Malaysia

F Lepar Hilir 1 F Lepar Hilir 2 F Lepar Hilir 3 F Lepar Hilir 4 FP Lepar Hilir 5 FP Lepar Hilir 6 FP Lepar Hilir 8

2013 Audit 2012

32 Neram Malaysia

FTP Seberang Tayor FTP Neram 1 FTP Neram 2 FP NERAM 03 FP CERUL 03 FTP Bukit Kuantan

2013 2014

33 Pancing Malaysia FTP Panching Utara FTP Panching Selatan FTP Panching Timur

2013 2014

34 M. Puspita Malaysia

FP Sahabat 7 FP Sahabat 46 FP Sahabat 48 FAS Sahabat 6,9,57 FAS Sahabat 17

2014 2014

35 N. Permata Malaysia FP Sahabat 50 FP Sahabat 51

2014 2015





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FP Sahabat 52

36 Tersang Malaysia

F Tersang 1 F Tersang 2 F Tersang 3 F Tersang 4 F Sg.Koyan 1 F Sg.Koyan 2 F Sg.Koyan 3

2014 2017

37 Besout Malaysia

FP Besout 6, FP Besout 7 FTP Besout 1 FTP Besout 2 FTP Besout 3 FTP Besout 4 FTP Besout 5

2014 2014

38 Sg Tengi Malaysia

FTP Gedangsa F Sg Tenggi FTP Soeharto FTP Sg. Tengi Selatan

2014 2014

39 Trolak Malaysia

FP Trolak FTP Trolak Selatan FTP Sg. Klah FTP Trolak Utara FTP Trolak Timur

2014 2014

40 Keratong 2 Malaysia

FP Bera Selatan 5 FTP Keratong 1 FTP Keratong 2 F Keratong 7 F Keratong 8 F Keratong 9 FP Keratong 11

2014 2014


FTP Keratong 3 FTP Keratong 4 FTP Keratong 5 FTP Keratong 6 FP Tembangau 6

2014 2014


F Keratong 10 FP Bera Selatan 7 FP Keratong Timur FP MERCHONG 01 FAS Merchong

2014 2013

43 Selancar 2A Malaysia

F Selancar 4 F Selancar 5 F Selancar 3 F Pemanis 2 F Medoi F Pemanis 1 FTP Redong FTP Selancar 1

2015 2015

44 Selancar 2B Malaysia FP Selancar 6 FP Selancar 8 FP Selancar 9

2015 2015

45 Pasoh Malaysia FTP Pasoh 1 FTP Pasoh 2

2015 2015





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FTP Pasoh 3 FTP Pasoh 4 FP Bera Selatan 3

46 Serting Malaysia

FP Tembangau 8 FP Serting 5 FP Serting Hilir 8 FP Serting Hilir 9 FP Palong 21 F raja alias 1 F raja alias 2 F raja alias 3 F raja alias 4 FAS Serting Hilir

2015 2015

47 Serting Hilir Malaysia

FAS Tembangau 9 FP Tembangau 3 FP Tembangau 5 FP Tembangau 7 FP Tembangau 9 F Sg Lui F Lui Timur FTP Lui Muda FTP Tembangau 1 FTP Tembangau 2 F Serting Hilir 1 F Serting Hilir 2 F Serting Hilir 3 F Serting Hilir 4 F Serting Hilir 5 F Serting Hilir 6 F Serting Hilir 7 F Selancar 2

2015 2013

48 Krau Malaysia FP Krau 2 FP Krau 4

2015 2015

49 Mempaga Malaysia

FTP Kg Sertik FTP Lakum FTP Bukit Damar FTP Mempaga 1 FTP Lurah Bilut FTP Mempaga 2

2015 2015

50 Maokil Malaysia

FP Maokil 6 FP Maokil 7 F Maokil 1 F Maokil 2 F Maokil 3 F Maokil 4 F Chemplak

2015 2013

51 Selendang Malaysia

FP Selendang 3 FP Selendang 4 F Selendang 2 FP Berabong ½ FTP Selendang 1

2015 2016

52 Tenggaroh Malaysia

FP Tenggaroh 9 FP Tenggaroh 11 FP Tenggaroh 13 F Tenggaroh 2

2015 2013





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F Tenggaroh 4 F Tenggaroh 5 F Tenggaroh 7 F Tenggaroh Timur 1 F Tenggaroh Selatan 1 F Tenggaroh 1 FAS T. TIMOR

53 T. Timor Malaysia

FP Tenggaroh Timur 2 FP Tenggaroh 12 F Tenggaroh 3 F Tenggaroh 6

2015 2013

54 Chalok Malaysia

FP Setiu 1 F Chalok F Chalok Barat F Tersat F Tenang Besut F Mengkawang FTP Belara FTP Selasih

2016 2016

55 J. Barat Malaysia FTP Jerangau Barat F Cerul 1 F Cerul 2

2016 2016

56 J. Baru Malaysia

FP Rantau Abang 1 FP Chador 1 FTP Jerangau FTP Bukit Bading

2016 2016

57 Kertih Malaysia

FP Semaring FTP Kerteh 1 FTP Kerteh 2 F Kerteh 3 F Kerteh 4 F Kerteh 5 FTP Kerteh 6 FAS Kerteh

2016 2016

58 F. Harapan Malaysia

FP Sahabat 20 FP Sahabat 21 FP Sahabat 25 FP Sahabat 22

2013 2013

59 H. Badai Malaysia

FP Sahabat 23 FP Sahabat 24 FP Sahabat 26 FP Sahabat 31 FP Sahabat 32 FAS Tambisan

2016 2015

60 J. Bistari Malaysia

FP Sahabat 27 FP Sahabat 28 FP Sahabat 33 FP Sahabat 34 FP Sahabat 36 FP Sahabat 37

2016 2016

61 Kalabakan Malaysia

FP Kalabakan Tengah 1 FP Kalabakan Tengah 2 FP Kalabakan Utara 1 FP Kalabakan Selatan 1

2016 2016





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62 Umas Malaysia

FP Umas 5 FP Umas 6 F Umas 1 F Umas 2 F Umas 3 F Umas 4

2016 2016

63 Sampadi Malaysia

FP Sampadi 1 FP Sampadi 3 FP Sampadi 4 FP Sampadi 5 FP Sampadi 6

2017 2017

64 Aring A Malaysia

FP Aring 2 FP Aring 3 FP Aring 4 FP Aring 5 FP Aring 6 FP Aring 15 F Aring 1

2017 2017

65 Aring B Malaysia FP Aring 8 FP Aring 10 FP Aring 11

2017 2017

66 Ciku Malaysia

FP Ciku 4 FP Ciku 8 F Ciku 5 F Ciku 6 F Ciku 1 F Ciku 2 F Ciku 3 F Perasu F Ciku 7

2017 2017

67 Kechau Malaysia

FP Kechau 2 FP Kechau 3 FP Kechau 6 FP Kechau 7 FP Telang 1 FP Chegar Perah 2 FAS Telang

2017 2013

68 Kechau B Malaysia FP Kechau 8 FP Kechau 10 FP Kechau 11

2017 2013

69 Kemahang Malaysia

FP Kemahang 4 FTP Kemahang 1 F Kemahang 3 FTP Kemahang 2

2017 2017

70 Cini 2 Malaysia FTP Cini 1 FTP Cini 2

2017 2017

71 Cini 3 Malaysia

FP Terapai 1 FTP Cini 3 FTP Cini 4 FTP Chini 5 FTP Chini Timur 2 F Chini Timur 3 F Chini Timur 1

2017 2017





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FP CINI TIMUR 04

72 Air Tawar Malaysia TBD 2017 2017

73 PT Citra Niaga Perkasa

Indonesia TBD TBD Recently completed the NPP in 2013

2.5 Summary of the findings for Partial Certification

The audit team assessed compliance with the above requirements during this audit. Failure to address any non-compliance identified may lead to certification suspension.

In term of the awareness and system implementation, the staff and stakeholders are generally well understood of the RSPO requirements. The management has allocated sufficient resources to manage the system and sighted the records RSPO competence personals. The conclusion is that the company is in compliance with the rules for partial certification.

2.6 Partial Certification Audit Agenda

Date Location Agenda

02/09/13 Padang Piol POM Documentation review





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PART 3: AUDIT PROCESS

3.1 About the Certification Body

Control Union Certifications is a member of the Control Union World Group – an international inspection and certification body. CUC performs Audits and certification in many agricultural based fields such as FSC, RSPO, and Organic production, Sustainable Textile Production, Organic Exchange, GLOBALGAP, HACCP, BRC, GMP and GTP. CUC is accredited by the Dutch Council of Accreditation (RVA) on the European quality standard EN 45011 for the inspection and certification of CUC Organic program (according to the EU regulation 2092/91) and EUREPGAP program. When requested a copy of the accreditation certificate can be obtained from CUC.

3.2 Audit Team

Lead auditor: Rizal Kassim

Team member 1: Asidatorn

Team member 2: Muhd Jamalul

3.2.1 Qualifications of the Lead Auditor

Requirement Qualifications

A minimum of post high school (post-secondary school) training in either agriculture/forestry, environmental science or social sciences;

Post graduate qualification in Forestry with 5 years working experience in manufacturing and forestry.

At least 5 years professional experience in area of work relevant to the assessment (e.g., palm oil management; agriculture/forestry; ecology; social science);

More than 5years working experience in plantation and forestry. Involved in RSPO auditing since July 2012. Fully trained in similar agriculture certification Programme such as RSPO SCCS, ISCC

Training in the practical application of the RSPO criteria, and RSPO certification systems;

Involved in RSPO assessment since July 2012. Member of CUC RSPO audit team. Involved in audits conducted in Malaysia and Indonesia.

Successfully completion of an ISO 9000:19011 lead auditors course;

Completed ISO 9001:2008 lead auditor course in January 2013

Training in the practical application of RSPO certification systems.

Member of CUC RSPO audit team since July 2012.Involved in audits conducted in Malaysia and Indonesia since July 2012 in more than10 different companies in Malaysia and Indonesia.

A supervised period of training in practical auditing against the RSPO criteria or similar sustainability standards, with a minimum of 15 days audit experience and at least 3 audits at different organizations.

Involved in audits conducted in Malaysia and Indonesia since July 2012 in more 10 different companies in Malaysia and Indonesia.

RSPO endorsed lead auditors course. Completed RSPO Lead Auditor training in 2013

Signed code of conduct. Signed with CUC

General knowledge of:

RSPO P&C standards. Sound knowledge of the P&Cs, Nis and Local Interpretations.

CUC organizational structure. Sound understanding and has prepared training documents for others.

CUC quality systems. Sound understanding and has prepared training documents for others.

Lead auditor role. ISO 9001. Prepared an ISO 19011 training course and conducts internal training on auditing techniques.

Report writing. Extensive experience in report writing.

Stakeholder consultation. The process and need for this is fully understood.

Certification decision process. Full understanding.

RSPO SCCS program manual. Full understanding.

CUC filing systems. Full understanding.

Correct use of RSPO trademarks. Full understanding.

History and objectives of RSPO. Full understanding.

CV available. Upon request.

Completion of CUC RSPO lead auditor training. Completed RSPO Lead Auditor training in 2013

3.2.2 Qualifications of the Assessment Team

RSPO Requirement Team Member Name Qualifications





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

Mohd Jamalul arif Post graduate in Agriculture

Asidartorn Bachelor in Agriculture Business and involve in RSPO audits Since 2012

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

Mohd Jamalul Involve in the RSPO audit since 2011

Asidartorn Involve in the RSPO audit since 2012

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

Asidartorn Involve in RSPO Audit since 2012

Mohd Jamalul Involve in RSPO Audit since 2011

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

Mohd Jamalul Involve in RSPO Audit since 2011

Asidartorn Involve in RSPO Audit since 2012

Economic issues.

Asidartorn Bachelor in the Agriculture Business

Muhd Jamalul Involve in RSPO Audit since 2011

3.3 Audit Methodology

3.3.1 General Overview

The Audit was carried out in conformity with the procedures as laid down in the CUC Procedure Manual and the RSPO Program Manual for the auditors and Certifier. During the Audit the qualified CUC auditors used the RSPO standard as endorsed for the country in which the audit took place and recorded their findings. Workers and local communities were interviewed and evidence sought to confirm ongoing compliance to include:

Chemical stores. Storage. MSDS leaflets. Herbicide mixing areas. PPE. Ventilation. Security.

Field inspections. Herbicide application programs. Harvesting sites and efficiency. Fertilizing operations. SOP’s. Soil maps. Land preparation. Ground cover. IPM. First aiders and boxes. Ground cover. Soil erosion. Field observations of all operations.

Worker interviews. OSH. Sexual, religious, racial harassment. Pay and contracts. Child labor. First aid. Awareness.

Re-planting sites. Zero burn.

HCV’s. Identification. Management plans. Environmental Impact Assessments. Implementation.

Riparian zones. Width. Current and future management. Non maintenance regimes.

Water management. Water courses. Water monitoring.

Road maintenance. Run off.

Social amenities. Social Impact Audits.

Local communities. Contributions made. Employment opportunities. Social impacts. Complaints procedures.

Workshops. Oil traps. Safe working environment. PPE. Diesel tanks. Environmental waste management.

Line sites. Interviews with householders. Inspection of water discharge points. Water improvement plans. Waste disposal.

Documentation review.

Palm Oil Mill audits include:

Mill and workshop inspections. Documentation. Worker interviews.

Mill. SOP’s. Safe working environment. Gen sets. Walk ways. Signs. EFB. POME treatment. Emissions. Mass





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balance. Diesel tanks. PPE. Fire extinguishers. First aiders and boxes. Fuel and water usage.

OSH. Training. Management structure. First aiders.

Full document review. Completion of the checklist. Review and documentation of evidence. All aspects of RSPO P&C’s applicable.

Worker interviews. OSH. Sexual, religious, racial harassment. Pay and contracts.

Compliance against the RSPO SCCS certification scheme.

Verification: Verification of implementation was done through field observations, workshop and chemical store inspections, worker and community interviews and mill inspections as summarized above.

3.3.2 Assessment agenda for this Audit

Date Location Auditors Main activities

02/09/2013 (Mon)

Padang Piol POM

Rizal 08.30 Opening meeting Chaired by the audit team leader

Introduction by team leader

Presentation by respective managers

Presentation of Palm Oil Mill source of FFB by respective managers

Rizal

Jamal Asidatorn

Supply Chain Certification Assessment of the POM (RSPO SCCS) Mill inspection

Workshops

Stores

POM application

Document review

03/09/2013 (Tues)

Sungai Retang Estate

Rizal

Jamal Asidatorn

Partial Certification Review with client representatives Field operations.

Worker interviews

Chemical stores

Workshops

Housing

Medical

Schools

Local communities

Environmental

04/09/2013 (Wed)

Padang Piol Estate

Jamal Asidatorn

Field operations.

Worker interviews

Chemical stores

Workshops

Housing

Medical

Schools

Local communities

Environmental

Padang Piol POM

Rizal Jamal

Asidatorn

15.00-17.00- Preparation for closing meeting Additional field visits and meetings with managers as necessary 17.00 -18.00pm- Closing meeting Chaired by the audit team leader

Welcome and introduction by the team leader

Presentation of findings by the audit team

Questions and answers

Final summary by team leader End of assessment





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PART 4 ASSESSMENT FINDINGS

4.1 Lead Assessor’s Summary and Recommendation for Certification

The mill and supply bases visited (as per the above Tables 1.5 and 1.7.1) and were assessed at field, office, facilities, stores and a document review was carried out in accordance to the RSPO principles and criteria. The subscribed RSPO management system’s documentations seen with minor changes that due to internal external influenced factors that in relation to scope of certification.

Specific evidence was recorded for estates and mill. Interviews with Estate / Scheme Managers, Mill Manager, members of workers union and committee took place in both formal and informal environments and worker interviews were conducted at the supply base and the mill. The management is highly committed in maintaining the RSPO system by adopting to continuous improvement programs.

There was no complaint or feedback received during the audit or during the field assessment when interviewing with the external stakeholders. Under partial certification rules, there is a time-bound plan for certification commencing 2010 onwards. For further clarification on Partial Certification, see PART 2 above.

The management continually monitoring the established KPI / objectives that significantly rules the achievement of company’s corporate policy on RSPO. The mill is fully verified for RSPO SCCS system verification and it is found to be in full compliance. See PART 5 below

It is therefore the recommendation of the lead assessor that:

A certificate of compliance is maintained. Signed:

Name: Rizal Kassim Date: 04th Sept 2013

4.2 Summary of the findings by Principles and Criteria

Over the 5 year period of the life of the certificate, there will be 4 annual surveillance audits

Identified Non-Conformities and noteworthy Positive and Negative Observations.

The RSPO require that this report contains findings by each principle and some example criteria. Please see table below.

Principle 1: Commitment to Transparency

Criterion Summary

Requests made by stakeholders were responded to and all these are well documented in both mill and estates.

ASA1 1.1 The company has a system in place and sighted a SOP for Communication, Participation & Consultation [FPI/L2/QOHSE-6.0] available that describes of receiving and responding to stakeholder requests. A log book “Buku Record Aduan” verified. Since from previous assessment, there wasn’t any request was made in written but there do some responded by the management for verbal request from employees. The stakeholder list available with schools and many other government agencies.

ASA1 1.2 Hazard identification [HIRADC] established and its related procedures are, [FPI/L2/QOHSE-1.0 HIRADC] [FPI/L2/QOHSE-2.0 Legal and Requirement], [FPI/L2/QOHSE-6.0 Communication, Participation and the Consultation].OHS training plan, committee organization chart and minutes documented. Risk assessment and mitigation measures are tabulated in the HIRADC. The pollution prevention plans are available for land, water and air pollution that linked to the aspect and impact assessment record as well to the list of legal & other requirements. There are no indigenous peoples in the area and land use rights are established. EIA and risk assessment include pollution and occupational hazard prevention plan which is publicly available on request.





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Principle 2: Compliance with Applicable Laws and Regulations

Criterion

Summary

The mill and estate have demonstrated compliance to all applicable local, national and international laws with the exception of the implementation of the USECHH 2000 Regulations and the Scheduled Wastes Regulations 2005. Boundaries have been clearly demarcated. There have been no land disputes or claims involving the mill and estate.

ASA1 2.1 Procedure established for legal and other requirements [FPI/L2/QOHSE-2.0] and the mill manager is the responsible person to co-ordinate with HQ for any changes in the requirements as well to update the internal members on the revisions. Records of expiry of permits and licenses are kept in the office and monitored to ensure no lapses in the compliance to Malaysian government laws and regulations. All legal indicators are in accordance to the documented procedure [FPI/L4/QOHSE-2.1]. Any changes in the law are advised to the mill or estate manager through memos from HQ. In any cases of changes in the relevant law, HQ will send circulated memos to estate manager.

ASA1 2.2 Verified quit rent for year 2013 payment. POM land title clearly designated for palm oil mill operation. No restrictions in the terms of the mill land titles noted as being abused. No disputes been recorded in POM. No land conflict due it is belonging to the smallholder. No land conflict. The land is leased from the government.

ASA1 2.3 No customary right due it is belongs to government. Sighted Procedure of Felda-Handle claim and dispute established; just in case.

Principle 3: Commitment to Long-Term Economic and Financial Viability

Criterion Summary

The annual budget and 5 years projections for the mill and estate that details revenue and costs are available. Replanting programme for the estate for the next five years is also available.

ASA1 3.1 Annual financial plan 2013/2014 is available for OER [%], Oil produced [%] and Prod. Cost FFB [RM/Mt FFB]. A matrix available for replanting and also sighted comparative oil palm monthly crop distribution for 3 financial years. Capital expenditure programe for replanting, immature and mature made available. Total 3 years [2011-2013] planned expenditure available for administration, transportation, road maintenance, fertilizer and others incurred for the replanting program and as at Jun 2013.

Principle 4: Use of Appropriate Best Practices by Growers and Millers

Criterion

Summary

Soil fertility is being maintained in the fields and erosion prevention is continuously carried out. IPM is being implemented in all the estate and the use of chemicals are in accordance with the regulations. OSH policy and is being implemented throughout the estate and mill.

ASA1 4.1 FELDA Group has prepared 115 SOP’s for all the activities in the mill. SOP’s will be revised if any changing of mill or estate activities. A “Manual Operasi Ladang Sawit Lestari” covering all activities in estate. The manual divide by 3 section “Plantation Development- Covering 20 operation activities in plantation”. Plantation Development (immature) - Covering 9 operation activities. Group SOP for estate operation dated 01-06-2012 and all operational SOP are kept at manager’s office and needs his approval for withdrawal for any operational purposes. All types of RSPO related records are retained for 7 years.

ASA1 4.2 Management established training programs including fertilizer application, sighted the training is programmes conducted in 2013. Recommendations and monitoring of fertilizer is done by FELDA Agricultural Services (FASSB) every year based on soil and leaf sampling. Records of fertilizer application in 2013 matched with the recommendations from FASSB. Soil and leaf sampling has carry out by FASSB. Agronomist will issue the report and recommendation to estate applied in fields. Estate take the own initiatives to apply EFB at the field have high humidity. Map shown the area applied available and record amount





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of EFB also were maintain by estate monthly.

ASA1 4.3 HCV related trainings includes on how to maintain soil erosion in the estate by planting cover crop, correct spraying area, stacking the frond to avoid bare ground. Record of training is well maintained. SOP for terracing no. MOSL – 12.0 is covering terracing activities and maintaining slopes area. Estate established operational documents as guidelines that based on SOP 12.0 to be implemented in the field. Drainage system also is maintained in that area. Up keeping of existing Mucuna is by not spraying herbicide and sighted from Jan 2013. Road maintenance programme is done based on survey and input from stakeholders for improvement.

ASA1 4.4 Buffer zone is maintains 20M from river up to estate. The area has be mark with red poles to avoid any chemicals activities is carried out inside. Estate strictly following to local authority guidelines to maintain the buffer zone. BOD analysis taken for POME final discharge and the mill is monitoring through weekly analysis. Water sampling being carried out weekly by mill laboratory and report of analysis are made available. Record of rainfall is maintained daily and summarized into monthly report for management review. POME final discharge to estate with proper management. Water management plan available in document (no. FPI/L4/QMS-1.0 pind. 1.0.

ASA1 4.5 Barn owl is provided and monitored by management. Rats attacking are still less based on census made. Monitoring of barn owl is done on every block. Observed a map indicating the barn owl boxes’ locations. Also observed the blanket rat bait application from Jan 2013. Pesticide was recorded included type of chemical, a.i, litre chemical, area applied by daily records. Sighted the monthly pesticide registered record since Jan – Aug 2013 with input of a.i for Ally 20DF, Basta 15, Paraquat, Garlon etc. Since 2011, there is up and down trend of Paraquat usage.

ASA1 4.6 Estate maintains the Standard operation procedure for justification of agrichemicals used. MSDS or CSDS is in place at suitable place the chemical is stored and in appropriate languages. There are 6 types of fertilizers and 3 types of pesticide recorded in the master list. During field visit, observed schedule waste, fertilizer and chemical stores were in good condition, complete with bund, good ventilation, locked, spillage kit, MSDS, labeled and first aid kit. Emergency shower and eye wash also in place in any emergency case. Sampled sprayers medical inspection report dated in 2012. There is evidence sighted during field visit, a written memo displayed in variable place to inform the effect of using Paraquat.

ASA1 4.7 OSH Plan and policy sighted, dated on July 2010; signed by Dato Dzulkifli; Pengarah Besar FELDA. Sighted Safe Operating Procedures with various dates for all the work station. Awareness is through morning briefing; and display of SOP at working area. Training records sighted for mill and estate staff. Sighted OSH Organization Chart dated in Feb 2013. First aid kit is available at workplace. Each kit have list of items and last date checking. Verified all kit is up to date.

ASA1 4.8 Training plan for year 2013 has been tabulated identifying category of workers, training title, frequencies of training with planning and realisation. Sample document sighted is FPI/L4/QOHSE-5.1. Training records sighted for various work categories and interview session with field workers has proven the training effectiveness.

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

Criterion

Summary

Environmental Impact Assessment has been carried out by the mill and estate. A comprehensive identification of all waste has been recorded and disposal of scheduled waste has been carried out by an approved and registered collector. Monitoring and analysis of waste is carried out regularly.





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ASA1 5.1 Environmental Aspect & Impact FPI/L4/QOHSE-1.7 dated on July 2012. The EIA sighted for FFB receiving, transporting FFB, and weighing FFB, push FFB trolley into steriliser and each other activities that described in the process flow. There are 4 Environmental Management Programmes developed. The concentration more given on legal compliances, such as BOD and stack emission monitoring and domestic waste management. Sighted effluent analysis results from Jan 2013 to July 2013. As for the estate, the EIA is sighted for maintenance works, harvesting, transportation and line site that may relates to oil, chemical or other sources of pollution. Observed evidence of mitigation measures done to minimize or control the risk to environment.

ASA1 5.2 The area is covered by the HCV assessment made by the estate as whole. In estate, the SOP-11.0 [High Conservation Value / Conservation Area Management] established. HCV assessments done by the Felda Agriculture Services [FAS], by Syarifah Nur Afni in 2011. A survey form, interview session and discussion among involved conducted and evidence sighted. HCV assessment records and its management plan well documented and seen the management plan for HCV well defined the HCV habitats and protected areas within landholdings. Signs and warnings regarding the presence of protected species were observed at various key areas during the audit.

ASA1 5.3 In mill, seen all waste [general, laboratory and engineering] is identified, documented and waste is disposed of in the prescribed way. Waste management programe for 2013 also seen well linked with source of pollution and the mitigation plan. Record of all schedule waste is reviewed. The schedule waste collection is centralised at Estate storage area. Documented records of receiving and disposing through authorised waste collector are available. Action plan to reduce waste incorporated in the program for 2013. No evidence of burning activities observed. Uses of EFB as fertilizer in the fields and scrap metal are sold to iron buyer.

ASA1 5.4 The mill is connected to the Malaysian electricity system as well energy is also generated by the company itself via a boiler and gensets. A complete mapping of baseline value established. As in estate, the management keep track of the diesel usage for the transportation involve for daily plantation management in a log book. Diesel usage for the transportation involve for daily plantation management in a log book.

ASA1 5.5 In mill, sighted a memo dated 03/07/13 [01]/4055/RSPO-2013 for the open burning policy enforcement. No open burning evidence observed during site visit to mill. In estate, policy is explained to all the employees at the operating units. Staff and Workers interview reveal that they are aware of the policy. No burning was noticed during assessment. Policy is explained to Staff and Workers during morning briefing. Emergency response procedure to handle land burning and a mock training conducted with the “Jabatan Pertahanan Awam” which is available.

ASA1 5.6 In mill, source of pollution been identified in the EIA which categorized as land, water and air with proper monitoring records available. Source of pollution been identified in the EIA. 2 management programmes established as to reduce the pollution level. Document for EIA & pollution prevention plan, program for 2013 established with description of major activities, hazards, frequency, impact rating, and level of risk, mitigating measures, target dates and person in charge.

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

Criterion

Summary

The mill and estate have conducted the social impact assessment. The relevant policies are in place and are fully implemented across the board. Communication and consultation as well complaints and grievances procedure are well communicated and adhered to.





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ASA1 6.1 A document for SIA Report [sample] is available. Last SIA fully conducted in 2010. For 2012; the survey form has been distributed to employee and settlers. A documented SIA Report is available. In 2012, a survey form that touched on issue such as local amenities, business support and social and religious was distributed to employees and settlers.

ASA1 6.2 The communication and consultation mechanisms designed in collaboration with local communities and other affected or interested parties relevant; related social communication and consultation is carried out. Records of all communication and records of actions taken in response to input from stakeholders maintained effectively.

ASA1 6.3 Documentation sighted for dispute and resolve stated in procedure ML-1A/L2-PR4 (0) dated Mac 2012. The scheme has “Visit Manager” activities. Sighted about 6 visits to settlers done since Jan 2013. Documentation sighted for dispute and resolve stated in procedure (20) Perhubungan Perusahaan. No complain registered for Year 2013.

ASA1 6.4 No negotiations concerning compensation for loss of legal or customary rights are as per this assessment period. No record show of loss of legal or customary rights which would have led to a necessary, consequent compensation or that any compensational claims would be open and/or evident.

ASA1 6.5 All pay is documented under check roll payslips. Workers are given payslip and acknowledge sign by them. Sighted agreement between Felda Palm Industries and Workers Union of Felda Palm Malaysia regarding sickness leave, holiday entitlement, maternity leave, reasons for dismissal, period of notice and maternity leave.

ASA1 6.6 The company conduct meeting with labur union once a year. The last meeting with labour union in April 2013, attended representatif from labour unions. Sighted minutes of meetings with main trade unions or workers representatives for migrant worker. Roll Call Muster is used for communication between employee & management.

ASA1 6.7 Children are not employed or exploited. Minimum age indicated at 17 years old in the organization Child policy. The recently appointed worker with birth on date 12.03.1992 whom started work on 22.3.2013.

ASA1 6.8 A policy of “Equal Opportunities” is established. No new promotion or demotion registered as per this audit period. Wage records show that wages are the same and interviews confirmed that there is no discrimination. Wage records show that wages are the same within all race and interviews confirmed that there is no discrimination on race, national etc.

ASA1 6.9 The company has policy regarding sexual harassment and violence & reproductive rights [ML-1A/L2-PO11(0) dated Mac 2012. Sighted the Gender Committee Chart and its supply base organization chart. A grievance mechanism evident through women’s association.

ASA1 6.10 Pricing is followed by actual MPOB pricing system. Online system from Felda HQ. A daily review and update does guarantee a clear and transparent procedure, complete records are available. Prices are displayed at the mills weighbridge - notice board for public information [FFB]. The contract between Mill and contractor/ supplier evident. As the Felda has no intervention with settlers, no direct contractor taken for any job.

ASA1 6.11 Sighted the budget for recreation activities since Nov 2012 to Aug 2013 amounted to RM 2680.00.

Principle 7: Responsible Development of New Plantings

Criterion Summary There were no new plantings carried out in any of the supply bases.

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

Criterion Summary

All the operating units are regularly monitoring and review their activities and develop and implement action plans that allow demonstrable continual





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improvement in key operations. Social impacts and mechanism to capture the performance and expenditure in social and environmental aspects.

ASA1 8.1 Management plan has been established to reduce chemical used.eg: introduction of Barn owl. Mill have objective to reduce the usage of diesel <0.55 litre/FFB. As for environmental concerns, maximizing recycling and minimize waste, EFB mulching, recycling of empty containers, scrap iron, used type, spent batteries, empty fertilizer bags, plastic bottle and plastic.

4.3 Non-conformity Raised During this Audit and Any from the Previous Year, if applicable

This section gives an over view of new or revised non-conformities raised during this audit and of action taken to close out non-conformities raised during the previous audits, if applicable

If a minor-non-conformity raised at the last audit, is not closed out, then this will be raised to Major status and the company given 60 days to close this out.

The NC number is comprised of 2 parts to include the year in which the NC was raised as well as a sequential number.

4.4.1 Non-Conformities Identified during this Audit

Nil

4.4.2 Non-Conformity Identified during the last ASA, not applicable for MA

The following NC’s were raised during the last audit and the status was reviewed as indicated below.

NON CONFORMITY REPORT

NC number: 01/2011

Client name: Felda

Date raised: 1 April 2011

Major or Minor: Minor

Raised by: A. Senniah

Aspect of standard: 5.3 Waste is reduced, recycled, re-used and disposed of in an environmentally and socially responsible manner.

Evidence of non-conformity: During the audit, the diesel bund was found to be cracked.

Assessors signature:

Date: 1 April 2011

Proposed corrective action / improvement action by company.

Timeline for conformance: Once resolved since this is a main assessment.

Review of corrective /improvement action: The company took a proactive action and immediately repaired the diesel bund. This NC is closed.

Assessors signature:

Date: 1 April 2011

NON CONFORMITY REPORT

NC number: 02/2011

Client name: Felda

Date raised: 1 April 2011

Major or Minor: Minor

Raised by: A. Senniah

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

Evidence of non-conformity: Records shows that there is no water analysis carried out for the PPPTR hostel. Assessors signature:

Date: 1 April 2011





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Proposed corrective action / improvement action by company.

Timeline for conformance: Next Surveillance

Review of corrective /improvement action: The company carried out water analysis and certificate was provided. With this, the NC is Closed. Assessors signature:

Date: 1 April 2011





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4.4.3 Observations Raised During this Audit

Nil

4.5 Issues that were raised during the Stakeholder Consultation, if any

Stakeholders were either informed by the client or by Control Union via the RSPO website.

For Main Assessments, a 30 day Stakeholder consultation announcement is published on the RSPO website

prior to the audit. The same announcement is circulated by the client prior to the audit

For subsequent Annual Assessments, it is based on stakeholders reading the approved public summary

reports available on the RSPO website, the client’s procedures in receiving on-going feedback or if feedback

was sent directly to Control Union prior to an audit or thorough RSPO complaints procedures.

During each assessment, the audit team will review the company’s implemented procedures in receiving

feedback and will execute field visits and interviews. Not limited to the following questions, any feedback

received is reviewed and summarized in this summary report for either Part 2 – Partial Certification or Part 4 –

Assessment Findings above or noted below, if applicable:

1. Do you have any remarks on the RSPO standard?

2. What is your relation with the applicant?

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

4. Do you consider any management is in conflict with the RSPO principles and criteria?

5. Do you have any suggestions for management?

6. Are you aware of any HCV in the plantations or in adjacent land?

7. Are you aware of any endangered or rare species?

8. Are there any adverse (or positive) effects on local communities?

9. Additional comments?

11. Do you have any comments about the assessment team and would you like to meet with them?

12. Do you have any comments for the client’s management of any other plantations?

Subject raised Company response and proposed action to be taken

Audit team findings

refer to PART 2 and PART 4 refer to PART 2 and PART 4 refer to PART 2 and PART 4





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PART 5: RSPO SUPPLY CHAIN CERTIFICATION

The palm mill mentioned in the scope of the audit was audited against the requirements of the following: RSPO Supply Chain Certification Systems. November 2011. RSPO Supply Chain Certification Standard. November 2011.

5.1 POM Included In The Scope Of The Audit

Name Palm Oil Mill

Mill Capacity

Location Supply Chain Model

(POM) MT/Hour Address (IP or SG or MB)

Padang Piol Palm Oil Mill

40 Kilang Sawit Padang Piol, 27040 Jerantut, Pahang.Malaysia.

MB

5.2 Confirmation Of The Company’s Summary Of Annual Certified Volume Of RSPO Certified Palm Oil And Palm Kernel Over A Specified Period

Product CPO (MT) PK (MT) Specified 12 month period

CU Code POM 1 11062.11 2714.44 Actual volumes from October 2012 – August 2013

5.3 Summary Report Including A Brief Description Of The Scope Of Certification

A full RSPO SCCS certification audit was used during this annual assessment and the findings support the certification based on supply chain model listed above.

5.4 Monthly Records of Certified FFB, CPO and PK Received Since the Last Audit

No MONTH-YEAR Certified Supply Bases (MT) Certified CPO (MT) Certified PK (MT)

1 10-2012 4229.18 982.15 271.14

2 11-2012 3700.63 1103.93 283.28

3 12-2012 4294.39 982.15 214.35

4 01-2013 4192.76 992.29 262.93

5 02-2013 3962.02 1001.27 251.47

6 03-2013 3693.39 992.52 239.29

7 04-2013 4110.37 1001.34 248.33

8 05-2013 3985.11 1072.99 218.27

9 06-2013 3937.91 952.48 204.29

10 07-2013 3818.83 1003.67 229.03

11 08-2013 3822.55 977.32 292.06

TOTAL 43747.14 11062.11 2714.44

5.5 Records of Certified CPO & PK Sold under Green Palm to Buyers since the Last Audit, if Any

No Buyers Name Green Palm Trading No Certified CPO (MT) Sold Certified PK (MT) Sold

No Trading

5.6 Records of Certified CPO & PK Sold under UTZ eTrace to Buyers since the Last Audit, if Any

No Buyers Name UTZ eTrace Trading No Certified CPO

(MT) Sold Certified PK (MT) Sold

No Trading

5.7 Non-Conformities Identified during this Audit

Timeline for compliance: 1. All non-conformances observed during an audit shall be classified as ‘major’ since all requirements for

Supply Chain certification have to be met before granting certification. 2. For Main Assessments, all non-conformances shall be addressed satisfactorily by the operation before

certification may be granted by the certification body. If non-conformances are not addressed within three (3) months of the audit, a full re-audit shall be required. The certification body shall assess the effectiveness





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of the corrective and/or preventive actions taken before closing out the non-conformances. 3. For Annual Surveillance Assessments, non-conformances raised after the certification are serious (i.e. must

be considered as a major) and the integrity of the RSPO Supply Chain Certification is at risk. A maximum of one month is to be given to the certified client to satisfactorily address the non-conformance. The certification body shall assess the effectiveness of the corrective and/or or preventive actions taken. Should the nonconformance not be addressed within the one month maximum timeframe, a suspension or withdrawal of the certificate and a full re-audit may be necessary.

4. If no non-conformances are observed at an audit or when the corrective action plan has satisfactorily addressed raised non-conformance(s), the client shall be recommended for (re-) certification.

Nil

5.8 Description of the Organizational Management Systems

Including organizations, management and operational systems to ensure compliance with the RSPO Supply Chain Certification Systems and Standards as detailed above

In term of the system implementation, staff and stakeholders are generally well understood of the RSPO requirements and the implementation seen objectively achieved. The management has allocated sufficient resources to manage the system and sighted RSPO competence personals.

5.9 Final Certification decision by Control Union for the RSPO SCCS Audit of the POM

Recommendations made: Yes

Summary of non-compliances:

Nil

Certification status of client: The POM included in the scope of this audit demonstrated full compliance with the RSPO SCCS. With effect from the certification date given in the RSPOPC certificate, this POM mentioned in the scope of this report is considered to be certified in accordance with the RSPO SCCS.





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PART 6: CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

6.1 Date of next ASA

The provisional date for the next ASA is: Sept 2014

6.2 Date for Closure of Non-Conformities

See sections above for details of NC’s, if any

All major NCs to be closed by: NA

All minor NCs to be closed by: NA

6.3 Signing by the Client

I the undersigned, being the most senior relevant management representative of the operation seeking or holding certification, agree with the contents and audit findings as presented in this document . I also confirm:

Acceptance of liability in execution of the instructions given.

That this company was made aware that the findings of the audit team are tentative; pending review and decision making by the duly designated representatives of Control Union Certifications.

That during the closing meeting all agenda items was covered by the Lead Auditor.

Acknowledged by:

Name: Norazam Abdul Hameed

Position: General Manager PSQM

Date: 03/11/2013 Signature

6.4 Signing by the Lead Auditor

I the undersigned, being the Lead Auditor, confirm that this report is an accurate record of the findings and of the closing meeting. I further confirm that the summary of the findings as presented in this report are a true representation of the actual findings of the audit team.

Acknowledged by:

Name: Rizal Kassim

Position: Lead Auditor


6.5 Signing by the Certifier

I the undersigned, being the Certifier, confirm that the information and conclusions included in this report have been prepared in good faith and that the certification decision has been based upon this information.

Acknowledged by:

Name: Hari Naveen Christopher

Position: Certifier






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PART 7: APPENDICIES

Appendix 1: Location Map for this Certification Unit

From 1.9, the location map(s)

Appendix A : Location Maps

Kilang Sawit Padang Piol





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Appendix 2: List of Abbreviations

BRC British Retail Consortium

BOD Biochemical oxygen demand

CHRA Chemical Health Risk Assessment

CoC Chain of Custody

COD Chemical oxygen demand

CPO Crude Palm Oil

CSR Corporate Social Responsibility

CU Control Union

CUC Control Union Certifications

DOE Department of Environment

DOSH Department of Safety and Health

EFB Empty Fruit Bunch

EIA Environment Impact Assessment

ERT Endangered Rare or Threatened species

EU European Union

FFB Fresh Fruit Bunch

FSC Forest Stewardship Council

FSC COC Forest Stewardship Council Chain of Custody

FSC FM Forest Stewardship Council Forest Management

GGL Green Gold Label

GMP Good Manufacturing Practice

GOTS Global Organic Textile Standard

GTP Good Trading Practice

GPS Global Positioning System

HACCP Hazard Analysis and Critical Control Point

HIRARC Hazard Identification, Risk Assessment and Risk Control

HCV High Conservation Value

HCVF High Conservation Value Forest

IPM Integrated Pest Management

JAS Japanese Agricultural Standard

LTI Lost Time Injury

MDC MDC Publishers Sdn Bhd ( Company Name)

MSDS Material Safety Data Sheet

NC Non Conformity

OE Organic Exchange

OSH Occupational Safety and Health

OSHAS Occupational Safety and Health Assessment Scheme

P&C Principle and Criteria

PEFC Programme for the Endorsement of Forest Certification

PK Palm Kernel

POME Palm Oil Mill Effluent

PPE Personal Protective Equipment

RSPO Roundtable on Sustainable Palm Oil

RSPO NI Roundtable on Sustainable Palm Oil National Interpretation

SA8000 Social Accountability 8000

Sdn Bhd Sendirian Berhad

SIA Social Impact Assessment

SOCSO Social Security Organization

SOP Standard Operating Procedure

USDA/NOP United States Department of Agriculture – National Organic Program

MT Metric Tones

WHO World Health Organization

RSPO audit Report · 2014. 11. 2. · PADANG PIOL OIL MILL Felda 2013 Report prepared by: Rizal...

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