RSPO audit Report · RSPO Principles & Criteria Main Assessment Report Report Number CU826924...

RSPO Principles & Criteria Main Assessment Report

Report Number CU826924

RSPOPC-SUM-REPORT.F01 JULY2013 of 41

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

MAIN ASSESSMENT

Malaysia

FELDA PENGGELI PALM OIL MILL 2014

Report prepared by: Simon Selvaraj (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 ............................................................................................................... 3

1.1 COMPANY AND CONTACT DETAILS ...................................................................................................................................................... 3 1.2 RSPO MEMBERSHIP & CERTIFICATION DETAILS .................................................................................................................................... 3 1.3 MAIN ASSESSMENT DETAILS .............................................................................................................................................................. 3 1.4 ASSESSMENT TYPE ........................................................................................................................................................................... 3 1.5 LOCATION OF THE PALM OIL MILL ...................................................................................................................................................... 3 1.6 PALM OIL MILL OUTPUT AND APPROXIMATE TONNAGES CERTIFIED ........................................................................................................... 3 1.7 GENERAL DESCRIPTION OF SUPPLY BASE .............................................................................................................................................. 4

1.7.1 Location of the Supply Base ........................................................................................................................................... 4 1.7.2 Statistics of the Supply Base and Estimated Tonnes of FFB produced per year ............................................................ 4 1.7.3 Percentage of Planted Oil Palm by different Age Ranges .............................................................................................. 4 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 ........................................................................................................................................................ 5

2.1 MANAGEMENT STRUCTURE ............................................................................................................................................................... 5 2.2 NON-COMPLIANCE IDENTIFIED WITH 2.1 ABOVE ................................................................................................................................... 5 2.3 SUMMARY OF THE TIME BOUND PLAN................................................................................................................................................. 6 2.4 UN-CERTIFIED UNITS OR HOLDINGS .................................................................................................................................................... 6 FELDA TIME BOUND PLAN............................................................................................................................................................................ 7 MILLS AND PLANTATIONS PROJECTED FOR RSPO CERTIFICATION IN 2010 .............................................................................................................. 7 2.5 SUMMARY OF THE FINDINGS FOR PARTIAL CERTIFICATION ..................................................................................................................... 13 2.6 PARTIAL CERTIFICATION AUDIT AGENDA ............................................................................................................................................ 13

PART 3: AUDIT PROCESS ................................................................................................................................................................... 14

3.1 ABOUT THE CERTIFICATION BODY ..................................................................................................................................................... 14 3.2 AUDIT TEAM ................................................................................................................................................................................. 14

3.2.1 Qualifications of the Lead Auditor............................................................................................................................................14 3.2.2 Qualifications of the Assessment Team ...................................................................................................................................15

3.3 AUDIT METHODOLOGY ................................................................................................................................................................... 17 3.3.1 General Overview ..........................................................................................................................................................17 3.3.2 Assessment agenda for this Audit .................................................................................................................................17

PART 4 ASSESSMENT FINDINGS ........................................................................................................................................................ 19

4.1 LEAD ASSESSOR’S SUMMARY AND RECOMMENDATION FOR CERTIFICATION ............................................................................................. 19 4.2 SUMMARY OF THE FINDINGS BY PRINCIPLES AND CRITERIA .................................................................................................................... 19

Principle 1: Commitment to Transparency .......................................................................................................................................19 Principle 2: Compliance with Applicable Laws and Regulations .......................................................................................................20 Principle 3: Commitment to Long-Term Economic and Financial Viability .......................................................................................21 Principle 4: Use of Appropriate Best Practices by Growers and Millers ...........................................................................................22 Principle 5: Environmental Responsibility and Conservation of Natural Resources and Biodiversity ...............................................26 Principle 6: Responsible Consideration of Employees and of Individuals and Communities by Growers and Millers .......................27 Principle 7: Responsible Development of New Plantings ..................................................................................................................30 Principle 8: Commitment to Continuous Improvement in Key Areas of Activity ...............................................................................30

4.3 NON-CONFORMITY RAISED DURING THIS AUDIT AND ANY FROM THE PREVIOUS YEAR, IF APPLICABLE ........................................................... 30 4.3.1 Non-Conformities Identified during this Audit ........................................................................................................................31 4.3.2 Non-Conformity Identified during the last ASA .......................................................................................................................37 4.3.3 Observations Raised During this Audit ....................................................................................................................................37

4.4 ISSUES THAT WERE RAISED DURING THE STAKEHOLDER CONSULTATION, IF ANY ......................................................................................... 37

PART 5: RSPO SUPPLY CHAIN CERTIFICATION .................................................................................................................................... 38

5.1 POM INCLUDED IN THE SCOPE OF THE AUDIT ..................................................................................................................................... 38 5.2 CONFIRMATION OF THE COMPANY’S SUMMARY OF ANNUAL CERTIFIED VOLUME OF RSPO CERTIFIED PALM OIL AND PALM KERNEL OVER A

SPECIFIED PERIOD ....................................................................................................................................................................................... 38 5.3 SUMMARY REPORT INCLUDING A BRIEF DESCRIPTION OF THE SCOPE OF CERTIFICATION .............................................................................. 38 5.4 FINAL CERTIFICATION DECISION BY CONTROL UNION FOR THE RSPO SCCS AUDIT OF THE POM .................................................................... 38

PART 6: CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY .............................................................. 39

6.1 DATE OF NEXT ASA ........................................................................................................................................................................ 39 6.2 DATE FOR CLOSURE OF NON-CONFORMITIES ...................................................................................................................................... 39 6.3 SIGNING BY THE CLIENT ................................................................................................................................................................... 39 6.4 SIGNING BY THE LEAD AUDITOR........................................................................................................................................................ 39 6.5 SIGNING BY THE CERTIFIER ............................................................................................................................................................... 39 APPENDIX 1: LOCATION MAP FOR THIS CERTIFICATION UNIT ............................................................................................................................. 40





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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 Ventures Plantation(M) Sdn. Bhd.

Certificate Number: C826924CU-RSPO.01.2014

Start Date Of Certificate: 14/04/2014

End Date Of Certificate: 14/04/2019

Date Of Original Certification: 14/04/2014

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 Main Assessment Details

Dates Of This Audit: 03 – 07 December 2012

Audit Number: Main

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

FELDA PENGGELI POM

45 Felda Penggeli Palm Oil Mill, Peti Surat

28, 81440 Bandar Tenggara, Johor. 103°38’24.53 N 1°49’36.80 E

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 2013 (MT)

Projected 12 Months (MT) Forecast Certified in this Report

FFB CPO PK FFB CPO PK FFB CPO PK

152,045.76 30,713.24 8,362.52 153,757.59 31,151.29 9,071.70 154,600 31,322 8,890

Note: The 12 month projected output is the average over previous 12 month period and the actual production for the 12 months from the date of certification will be included in the second annual surveillance summary.

mailto:[email protected]

http://www.feldaglobal.com/





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1.7 General Description of Supply Base

Penggeli POM and supply bases are owned by the Felda Global venture. The mill receives 100 % of crops from their own estates, and details of supply base is as below.

1.7.1 Location of the Supply Base

OPP

Oil Palm Plantation

Location GPS reference Area Summary

(Ha)

Name Address Longitude Latitude Total Mature

OPP 1 Felda Inas Utara Pejabat Felda Inas Utara, 81000 Kulaijaya, Johor.

103°36' 45" U 1° 46' 26" T 1110.43 1082.13

OPP 2 FP Inas Selatan Pejabat Ladang Felda Inas Selatan, Wakil Pos Inas, 81000 Kulai, Johor.

103°36' 45" U 1° 46' 26" T 1150.07 705.68

OPP 3 Felda Sg. Sibol Pejabat Felda Sg. Sibol, 81000 Kulai, Johor.

103°38' 27" U 1° 50' 51" T 1665.68 1665.68

OPP 4 Felda Sg. Sayong

Pejabat Felda Sg. Sayong, 81000 Kulai, Johor.

103°40' 52" U 1° 46' 52" T 1628.31 1620.07

OPP 5 Felda Penggeli

Timur

Pejabat Felda Penggeli Timur, 81440, Bandar Tenggara, Johor.

103°46' 52" U 1° 29' 14" T 1885.68 1868.63

OPP 6 Felda Linggiu Pejabat Felda Linggiu, 81440 Bandar Tenggara, Johor.

103°43' 26" U 1° 49' 18" T 2018.77 2018.77

TOTAL 9458.94 8960.96

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)

OPP 1 Felda Inas Utara 20,110 2005 25 years

OPP 2 FP Inas Selatan 12,350 1988-2011 25 years

OPP 3 Felda Sg. Sibol 47,500 2001-2005 25 years

OPP 4 Felda Sg. Sayong 0.00 1995-2010 25 years

OPP 5 Felda Penggeli Timur 44,400 2008-2010 25 years

OPP 6 Felda Linggiu 30,240 2006 25 years

TOTAL 154,600

1.7.3 Percentage of Planted Oil Palm by different Age Ranges

CU CODE Planting years by 5 year ranges ( % )

1989-1993 1994-1998 1999-2003 2004-2008 2009-2011 Total (Ha)

OPP 1 0 0 0 1110.43

(100%) 0

1110.43(100%)

OPP 2 1043.31 (90.71%)

0 0 35.65 (3.09%)

71.11 (6.18%)

1150.07(100%)

OPP 3 0 0 1657.75

(99.52%) 7.93

(0.47%) 0

1665.68(100%)

OPP 4 0 1620.07(99.4

9%) 0 0 8.242(0.51%)

1628.31(100%)

OPP 5 0 0 0 0 1885.68(100

%) 1885.68 (100%)

OPP 6 8.08

(0.41%) 0 0 2010.69

(99.59%) 0

2018.77(100%)

Total 9458.94





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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

6 2 0 0

Explanation as to the selection of estates sampled

Two of the three 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)

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 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





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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?

All subsidiaries, estates and mill are included Yes

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

applicable law.

The plan was reviewed to fit to their initial goal and there are some new inclusions to be certified.

Yes

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

The time bound plan has been thoroughly reviewed by the company.

Yes

2.3.4 If there have been changes, what circumstances have occurred?

No changes identified Yes

2.3.5 Have there been any stakeholder comments?

No comments received regarding other units as of this audit period.

Yes

2.3.6 Have there been any newly acquired subsidiaries?

Nil Yes

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

No lapses. Yes

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

Nil. Yes

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

The company is now on target to have all their properties audited and / or certified by the end of 2015.

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

No replacement of primary forest and HCV. Yes





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Conservation Values (HCVs).

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

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 accordance with RSPO criteria 6.4, 7.5 and 7.6.

None noted. No stakeholder comments or complaints received.

Yes

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

FELDA Time Bound Plan.

Mills and Plantations projected for RSPO certification in 2010

Name of Mill

Name of plantation/projects

Planted area

Address Certified by Jan 2012

yes no expected to be

Padang Piol

FTP Padang Piol 2,870.60 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

Audited by CUC in March 2011. Audit report yet to be submitted to RSPO Secretariat.

FTP Jenderak Selatan 1,017.81 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

FTP Jenderak Utara 2,173.29 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

FTP Sg. Retang 2,120.90 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.





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F Jengka 1 2,215.10 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

Jengka 3

FTP Jengka 2 1,858.07 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

Audited by CUC in March 2011. Audit report yet to be submitted to RSPO Secretariat. FTP Jengka 3 1,787.21 Wisma FELDA, Jalan

Maktab, 54000 Kuala Lumpur.


FTP Ulu Jempol 2,336.36 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.




F Bukit Tajau 448.19 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

Jengka 21 FTP Jengka 21 1,653.80 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

Seroja


Audited by BSI in July 2011. Audit report submitted to RSPO Secretariat.








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FTP Sg. Nerek 979.16 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

F Jengka 20 1,870.00 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

F Kg. Awah 533.19 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.





Lepar Utara 4

F Lepar Utara 2 693.96 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

Audited by BSI in July 2011. Audit report yet to be submitted to RSPO Secretariat.

FAS Lepar Utara 10 103.9 7th Floor, Balai FELDA, Jln Gurney 1, 54000 Kuala Lumpur.



FP Lepar Utara 5 3,224.28 Tingkat 8, Balai FELDA, Jln Gurney 1, 54000 Kuala Lumpur.

FP Lepar Utara14 3,006.92 Tingkat 8, Balai FELDA, Jln Gurney 1, 54000 Kuala Lumpur.

Jengka 8

F Sg. Tekam 793.02 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

Audited by CUC in March 2011. Audit report yet to be





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submitted to RSPO Secretariat.






FTP Sg. Tekam Utara 1,880.18 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

F Jengka 24/25 2,217.25 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

FAS Jengka 24/25 870.54 Tingkat 7, Balai FELDA, Jln Gurney 1, 54000 Kuala Lumpur.

FAS PPPTR/UKA 1,679.79 Tingkat 7, Balai FELDA, Jln Gurney 1, 54000 Kuala Lumpur.

Semencu

F Pasak 1,015.11 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

Audited by SGS in June 2011. Audit report submitted to RSPO Secretariat.

F Semencu 2,484.67 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

F Air Tawar 1 2,537.84 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.






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Lok Heng

FTP Air Tawar 2 3,114.62 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

Audited by TUV Rhineland in June 2011. Audit report submitted to RSPO Secretariat.

FTP Papan Timur 2,257.07 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

FTP Aping Barat 1,880.37 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

F Lok Heng Barat 1,967.89 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

F Lok Heng Selatan 1766.71 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

F Lok Heng Timur 1,986.37 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

Adela FTP Sg. Mas, 2,940.73 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

Audited by TUV Rhineland in June 2011. Audit report submitted to RSPO Secretariat.

FTP Sening 2,211.03 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

FTP Adela 1,656.44 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

Wa Ha

FTP Aping Timur 2,640.06 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

Audited by Agrovet in Feb 2011. Audit report submitted to RSPO Secretariat.

FTP Bukit Wa Ha 1,454.81 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

FTP Simpang Wa Ha 2,239.57 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.







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FTP Bukit Easter 1,616.86 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

1.1.3.2 Mills and Plantations projected for RSPO certification in 2011

Kemasul

FP Mengkarak 1 2,678.19 Tingkat 8, Balai FELDA, Jln Gurney 1, 54000 Kuala Lumpur.

Audited by CUC in December 2011. Audit report submitted to RSPO Secretariat.

FP Mengkarak 2 2,328.27 Tingkat 8, Balai FELDA, Jln Gurney 1, 54000 Kuala Lumpur.

FTP Kemasul 1,959.29 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

Kepayang

FP Terapai 3 2,437.07 Tingkat 8, Balai FELDA, Jln Gurney 1, 54000 Kuala Lumpur.

Audited by SIRIM in December 2011. Audit report yet to be submitted to RSPO Secretariat. FTP Kepayang 1950.74 Wisma FELDA, Jalan


FTP Mayam 2,291.08 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

FTP Kumai 2,336.68 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

Tementi

FP Bera Selatan 1 3,138.07 Tingkat 8, Balai FELDA, Jln Gurney 1, 54000 Kuala Lumpur.

Audited by SIRIM in December 2011. Audit report yet to be submitted to RSPO Secretariat. FP Bera Selatan 4 2,911.15 Tingkat 8, Balai FELDA,

Jln Gurney 1, 54000 Kuala Lumpur.

FTP Purun 2,591.91 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

FTP Sebertak 1,797.92 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

FTP Rentam 2,041.06 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.





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FTP Tementi 1,807.57 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

Bukit Mendi

FTP Bukit Mendi 1932.63 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

Audited by Moody Intertek in December 2011. Audit report submitted to RSPO Secretariat. FTP Bukit Puchong 1,870.38 Wisma FELDA, Jalan


F Mengkuang 610.85 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

F Sg Kemahal 1838.7 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

FTP Chemomoi 2,583.12 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

Triang

FP Triang 2/4 3,424.59 Tingkat 8, Balai FELDA, Jln Gurney 1, 54000 Kuala Lumpur.

Audited by CUC in December 2011. Audit report submitted to RSPO Secretariat.

F Triang 1 934.12 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

F Triang 3 482.32 Wisma FELDA, Jalan Maktab, 54000 Kuala Lumpur.

FP Triang Selatan 1 3,101.70 Tingkat 8, Balai FELDA, Jln Gurney 1, 54000 Kuala Lumpur.

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.

FELDA has acquired 10,000 hectares of land in Limbang, Sarawak. The EIA and HCVF reports are being prepared by a local consultant company. The EIA report is in the final draft stage and the HCVF interim reported had been prepared as of July 2012. There are plans to develop 300 hectares of land each in Endau and Mersing into new planting. Work is in progress to conduct HCV and social impact assessments. Felda will adhere to the new planting procedure once the reports are finalized and decisions will be taken to proceed for further development.

2.6 Partial Certification Audit Agenda

Date Location Agenda

30/01/13 Balai Felda, Jalan Gurney 1, 54000, Kuala Lumpur.

Opening meeting 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: Simon Selvaraj

Team member 1: Mohd. Rizal bin Md. Kassim

Team member 2: Mahaswaran Maliyapan

Team member 3: Selvanathan Grapragasem

Team member 4: Jamalul Arif

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 agriculture with more than 5 years working experience in plantation.

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 5 years working experience in plantation. Involved in RSPO auditing since November 2010. Fully trained in similar agriculture certification programmes such as RSPO SCCS, Global Gap, ISCC and GMP.

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

Involved in RSPO assessment since November 2010. 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 July 2011. Successfully completed RSPO Lead Auditor Course.

Training in the practical application of RSPO certification systems.


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.


RSPO endorsed lead auditors course. Completed RSPO Lead Auditor training in April 2011

Signed code of conduct. Signed with CUC

General knowledge of:

RSPO P&C standards. Yes

CUC organizational structure. Yes

CUC quality systems. Yes

Lead auditor role. Yes

Report writing. Yes

Stakeholder consultation. Yes

Certification decision process. Yes

RSPO SCCS program manual. Yes

CUC filing systems. Yes

Correct use of RSPO trademarks. Yes





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History and objectives of RSPO. Yes

CV available. Yes

Completion of CUC RSPO lead auditor training. Completed and passed RSPO endorsed lead auditor training in April 2011.

3.2.2 Qualifications of the Assessment Team RSPO Requirement Team Member Name Qualifications

Fluent in main local languages and English.

Mohd. Rizal bin Md. Kassim Fluent in both English and Bahasa Malaysia

Muhd. Jamalul Arif Fluent in both English and Bahasa Malaysia

Mahaswaran Maliyapan Fluent in both English and Bahasa Malaysia

Selvanathan Grapragasem Fluent in both English and Bahasa Malaysia

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

Mohd. Rizal bin Md. Kassim More than 5 years working experience in forestry and manufacturing firm. Involved in FSC auditing since 2008. Fluent in local languages.

Muhd. Jamalul Arif Undergraduate in plantation background. Involved in RSPO auditing since 2010 and experience in similar auditing field in GMP B2 and Global Gap.

Mahaswaran Maliyapan Quality, environment and OHSAS Lead auditor. Working experience in various industries. Auditing since 2007.

Selvanathan Grapragasem SA 8000 advanced auditor, QMS, EMS & OHSAS Lead Auditor, Working experience in oil palm plantation.

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




Selvanathan Grapragasem SA 8000 advanced auditor, QMS, EMS & OHSAS Lead Auditor, Working experience in oil palm plantation.

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




Selvanathan Grapragasem SA 8000 advanced auditor, QMS, EMS &





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OHSAS Lead Auditor, Working experience in oil palm plantation.

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






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






Economic issues. Mohd. Rizal bin Md. Kassim More than 5 years working experience in forestry and manufacturing firm. Involved in FSC auditing since 2008. Fluent in local languages.









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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. The Palm Oil Mill audit verification included the following activities:

Mill and workshop inspections. Documentation review & worker interviews.

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

03/12/2012 [Mon]

Penggeli POM Office

Simon

08.30 Opening meeting Chaired by the audit team leader

Introduction by team leader

Presentation by respective managers

Presentation of POM source of FFB by respective managers

Penggeli POM

Simon/Jamal

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

Workshops





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Stores

POM application

Inas Selatan

Rizal Selva

Mahas

Field operations.

Worker interviews

Chemical stores

Workshops

Housing

Medical

Schools

Local communities

Environmental

04/12/2012 [Tue]

Penggeli Timur

Simon

Selva Jamal

Supply Chain Certification Assessment of the POM (RSPO SCCS) Field operations

Worker interviews

Housing

Medical

Schools

Local communities

Environmental

Felda Liggui

Rizal

Mahas

Field operations.

Worker interviews

Chemical stores

Workshops

Housing

Medical

Schools

Local communities

Environmental

07/12/2012 [Fri]

Penggeli POM Office

All auditors

Preparation for closing meeting Additional field visits and meetings with managers as necessary 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 were visited (as per the above Tables 1.5 and 1.7.1) and were assessed at field, office, facilities, stores and document reviews were carried out in accordance to the RSPO principles and criteria. This assessment was carried out together with 2 others facilities under FELDA. Common systems were identified and specific evidence was recorded for individual estate 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.

Up to the time of writing this report, there were neither feedbacks nor comments received from the other external stakeholders and community leaders nor from the public announcement in the RSPO website. However, there found several major NC’s in this assessment that company has took action by time frame given to closed it.

The management continually monitors 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: Simon Selvaraj Date: 21 June 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 contain findings by each principle and some example criteria. Please see table below.

Principle 1: Commitment to Transparency

Criterion by Audit Summary

Sighted requests made by stakeholders not well documented. Relevant documents are made publicly available. 1 major NC raised with regards to inadequate records for the requests and responses.

MA 1.1 Recent document master list dated on 02/01/12. Manager of each facility is the person responsible for any changes in the system. Stakeholder [internal/external] master list is publicly available. Verified record dated 13/04/12 - Bil 30-31754, to the local water authority [SAJ Holding Kota Tinggi]. Different files / folders are created [water/school/social/workers] as to identify the needs effectively. Sighted SOP for request and responses [RSPO 3.4] dated Mar 2012 effectively documented and communicated.

A Major NC was issued for “There are no proper records of requests and responses maintained since Oct 2011 as most of the requests received were treated verbally”.

MA 1.2 Land title indicates the land belonging to the state government [Johor].This land is legally approved for agriculture & research activities. Verified temporary hold titles for:

Land Title No: 361226, 5346, and 5343 with lease period 99 years.

Land title for Mr. Sehat bin Atan [4371] with paid tax of RM 60.00 dated on 23/02/2011 with lease period 99 years. The land fall under





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Mukim Hulu Sungai Johor. The lot number is 14419 with total land size of 4.06Ha.

OSH manual [RSPO 2012 -K4.7] as group level. Recent hazard identification was carried out on 09/12/2012. Sighted OSH regulation made one of the publicly available document.

Summary list of applicable law & regulations are in place along with risk assessment and it’s mitigation measures. FELDA group agriculture policies and documents sighted at all operating units. EIA and SIA are in place which the assessments done in participation with stakeholders.

EIA assessment weighted on 3R which associated with schedule waste management plan. Negotiation procedures [ML-1A/L2-PR3] are included in the complaint procedures. There are no indigenous people in the area and land use rights are established more than 30 years.

Principle 2: Compliance with Applicable Laws and Regulations

Criterion by Audit

Summary

The mill and estates have demonstrated partially compliance to applicable local, national and international laws as seen there were non-confomities issued in relation to this criterion. Legal ownership of estate land and its land use is clearly demonstrated through the respective land titles. However a major NC issued to mill for not demonstrating their land ownership. Boundaries have been clearly demarcated. There have been no land disputes or claims involving the mill and estates.

MA 2.1 All laws and regulations are maintained in “List of Laws and Regulations list” which has been revised on 5 Mac 2012. Mill Manager is responsible to monitor the compliance.

Sighted some of the applicable laws and regulations:

OSHA and regulations 1994 (Act 514)

Factories and Machinery Act with regulations (Act 139)

Pesticides Act and Regulations (Act 149)

Poison Act and Regulations 1952 (Act 366)

Ministry of Trade.

Malaysia Oil palm Board (MPOB) Regulations

Road Transport Act 1987 (Act 333)

Employees Social Security Act and Regulations (Act 4)

Food Act and Regulations (Act 281)

Industrial Relations Act and Regulations (Act 177)

Trade Union Act and Regulations

Employees Provident Fund Act 1991

Human Rights Commission of Malaysian Act.

Wetlands and climate Change 1999

The UN Convention on Biological Diversity

Stockholm Convention On Persistent Organic Pollutants (2001)

Rotterdam Convention on Prior and Informed Consent Procedure for certain hazardous chemicals.

International Labour Organisation Convention 98(1949)

Aboriginal Peoples Act 1954 (Act 134)

Arms Act 1960

Children and young person (employment) act 1966

Commercial vehicles(Licensing Board Act 1987)

Electricity Supply Act 1990

Employment Act 1955

Immigration Act 1959/63





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Internal Security Act 1960

Irrigation Areas Act 1953

Land and Conservation Act 1960

National Forestry Act 1984

Environment Quality Act 1974

Estate Hospital Assistants (Registration) act 1965

Act 645 National Heritage Act 2005

Act 344 Police Act 1967

Anti-Corruption Act 1997

Act 246 Private employment Agencies Act 1981

Act 76 Protection of Wild Life Act 1972

Act 208 Sewerage Services Act 1993

Act 133 Street, Drainage and Building Act 1974

Wages Councils Act 1974

Waters Act 1920

Workmen’s Compensation Act 1952.

Pesticides Act 1974

Destructions of Disease Bearing Insects Act

Employment Act 1955

Internal Security Act 1960

Employment Provident Fund Act

Drainage Works Act 1954.

Workers minimum Standards of Housing and Amenities Act 1990

Complete set of laws and regulations are maintained in file no: P2/3/2012. Mechanism to monitor the laws is viewed with renewal date, expiry date and person in charge. Under OSHA act, once in 3 months meetings will be held on medical surveillance, PPE, accident record, CHRA and fire extinguisher.

The administrative section effectively comply with the Immigration act as to monitor the presence of foreign workers, insurance, visa and passport. Company has a system to ensure that all laws and regulations by utilizing the “Laws checklist form” [FPI/L4/QOHSE-2.1]. All laws and regulations reviewed by HQ once a year and updates will be notify to all operating units through email.

A system to track changes in law and regulations is managed by the HQ. Procedure clearly decribes that, changes will be address through 4 steps, which involves the management till the mill/plantation as: Changes in laws and regulations Head office (FELDA & FELDA Holding) FELDA region office / Mill Manager Office Mill/plantations/settlers.

MA 2.2 All estates effectively documented the copies of land titles of settlers and a copy been provided to all settlers. Sighted in Felda Inas Utara, a total of 14 boundary poles were placed surrounding the estate. Estate also provides map to recognise the poles for easy tracking and maintenance.

A Major NC was issued, as the palm oil mill does not have a documented evidence of legal ownership or lease. Hence, there is no history of land tenure and the actual legal means by the mill to use the land.

MA 2.3 There were no customary rights issues sighted and raised by the by internal and external stakeholders during the stakeholder meeting and during the visit to surrounding communities.

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

Criterion by Audit Summary

The annual budget and 2 years projections for the mill and estate that details revenue and costs are available. Replanting programme for the estates for the next five years is also available.





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MA 3.1 Annual budget for projection until 2015 was maintained. Budget cost of production been summarized by total planting area, total tonnes per hectare, cost per hectare and cost per tonnes. Budget also covered others expenses such maintenances of workers housing and office, drainage system, main road, event and others. Next replanting estimated in 2018.

The management continually monitors the established KPI / objectives that significantly rule the achievement of company’s corporate policy on RSPO. The sustainability team members from each operating unit will perform audits on monthly basis which will be reported to Sustainability in HQ. Top management continuously establishes directions for the middle and upper management to execute in ways to sustain the RSPO.

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

Criterion by Audit

Summary

The mills and estates have a complete set of SOPs which is being strictly adhered to and continuously monitored. Soil fertility is being maintained in the fields and erosion prevention is continuously carried out. IPM is being implemented in all the estates and the use of chemicals are in accordance with the recommendation. There is a comprehensive OSH policy and is being implemented throughout the estate and mill. There are 1 minor and 3 major non-conformities [training, safety and chemical management] issued.

MA 4.1 The mill effectively documented its SOPs in place and these SOPs covers all mill operations from FFB reception right until mill effluent treatment and details the procedures of mill operation in an efficient and safe manner.

The implementation of these SOPs is done through maintenance and record keeping of forms and data for, FFB incoming records, boiler smoke density records, sterilizer temperature and time records, steam flow record, water usage records, chemical test records, process control and production report and CPO stock inventory, spare parts inventory records and so on. Observed some procedure on Quality Management System, safety, occupational safety and environment. The record as below:-

1. Quality planning, Hazard Identification risk assessment, determining controls and environmental aspects.

2. Legal and other requirements 3. Objectives, targets, programmes and continuous improvement. 4. Structure, Resources, Roles, responsibility, accountability and

authority. 5. Competence, awareness and training. 6. Communication, participation and consultation. 7. Control of documents. 8. Control of chemicals 9. Waste management 10. Operation of effluent treatment plant.

The estates have ‘Good Agricultural Practices’ which is their guide in ensuring efficient and optimal field operations. These SOPs cover all estate operations from nursery until delivery of FFB to the mill and includes among others land clearing, land conservation, distance of planting, field maintenance, pest control, fertilizer application and harvesting.

Sighted SOPs are being reviewed periodically or if there is a new technique of operation being introduced. Observed records and data are kept for a period of seven years. Sighted evidence for:

“Pengurusan Bekalan Baja” – MLSL [ED.2] – Sec.5 [1.0] – 1/06/2012.





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“Menyulam Anak Benih Sawit” – MLSL [ED.2] – Sec.3 [1.0] – 1/06/2012.

“Mengumpan Tikus di Ladang Sawit” – MLSL [ED.2] – Sec.4 [1.0] – 1/06/2012.

MA 4.2 Annual soil and leaf sampling carried out by Felda Agricultural Services Sdn Bhd. (FASSB) to analyse and determine the soil and palm nutrient level. The final fertilizer recommendation is made upon result and field visit by the Agronomist.The recommendations are well linked to estate weeding operation where the records clearly identify the applied fields and date of application. Sighted the records of EFB application which is carried out in accordance with the recommendations of the Felda Agricultural Services Sdn Bhd. (FASSB).

NPK Mg Granule is the only recommended fertilizer by FASSB. Records of fertilizer application includes of the amount used, total applied area, manpower and hectare per workers. In October 2012, sighted records of 4th round fertilizer application in Felda Sg. Sibol, whereby 156,700 kg applied for 125 palm trees [417.78 Ha] that equalling to 3 kg per trees.

MA 4.3 Settlers were provided training on environment and HCV by the scheme managers. These trainings covers on prevention of soil erosion by planting cover crops, correct spraying method / area and stacking of frond to avoid bare ground. Training records are well maintained by scheme managers. SOP for terracing no. MOSL – 12.0 is covering terracing activities and maintaining slopes area.

Estate maintains the terrace in over 15 degree slopes and be covered by planting Mucuna Bracteata. Drainage system is being maintained and pruned fronds is stacked along inter row to mitigate soil erosion and fertilizer run off. The implementation of SOPs are recorded and maps for the high risk area are recognised.

MA 4.4 Buffer zone is maintained 1 m alongside Tampoi River marked with ”blue ring” on the tree. No chemical activities are allowed in the buffer zone. Sample of river water checked. There are 2 sampling points for Sg. Tampoi inlet and outlet. Water analysis planned once a year by FASSB. Sighted latest report dated on 10 October 2012 CA/06/07/02/19(01). Report inlet included -pH 6.1 -BOD 20c 1mg/l -COD 5mg/l -Total suspended Solid 8mg/l -Ammonia Cal Nitrogen 0.36mg/l -Dissolved Oxygen 10.31mg/l

Outlet: -pH 6.1 -BOD 1mg/l -COD 5mg/l -Total suspended Solids 5mg/l -Ammonia Cal Nitrogen 0.72mg/l -Dissolved Oxygen 10.35mg/l

5 years of documented monitoring evidence of daily distributed rainfall [mm] with temperature and sunshine available. Water consumption record per ton FFB ratio has been maintained for every year to measure the performance of the mill.

No construction at river sides or waterways passing through the estate such as building, houses, roads or bridge was evidenced during field verification. Land irrigation improvements using better pipe system. Pollution prevention





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plans are made available. Mowing of extraction paths and ground cover crops are some of the actions to reduce erosion. Traps in watercourses installed as to collect any waste such as plastic bags.

MA 4.5 The locations where barn owl cages are built are also mapped in each field with information available for block no, month erected, box no, development stages of the owls(eggs,immature, mature), box condition, condition around the box. Based on census made rats attacking are still large and sighted relevant records to justify the effectiveness of monitoring.

Pesticide usage is monitored by calculating the total active ingredient used whose toxicity is expressed in LD50 (mg/Kg). The total a.i. used was computed from: Ha planted, tonnes FFB/Ha, pesticide used (L/Ha) with results finally shown in terms of a.i units monitored (Kg/LD 50/FFB) at monthly interval and to date. Estates use the Ebor baits for the rat, trunk injection (Monocrotophos) based on the outbreak and herbicides.

MA 4.6 The mill and estates maintain a chemical register detailing the chemicals use, its purpose and classification, packaging and labeling requirements as per the “Register of Chemicals Hazardous to Health stipulated in the USECHH 2000 regulations (regulation 5)”. All pesticides used are in accordance with the Pesticides Act 1974 (Act 149) and the relevant provision (Section 53A) and in accordance with USECHH Regulations (2000).

The estates still use 2 types of Class 1B chemicals namely Monocrotophos and Warfarin for trunk injection to counter bagworm attack and to counter rat attack respectively. These chemicals will only be used in the event that the threshold of infestation in a block exceeds 5%.

Both the chemical and pesticides stores were found to be in good condition with the appropriate spillage traps filled with charcoal and empty bunch. Signage of “Only authorized person allowed” clearly display at entrance. Sighted the required PPE for those handling chemicals, first aid equipments, spillage kits, fire extinguishers, eye washing area, dressing room for female workers and emergency shower adequately made available. Signages both in English and Malay and emergency contact list observed at all visit areas.. There are no pregnant workers who were handling pesticides in the estates.

CHRA for the mill and estates were conducted and all recommendations of the CHRA were adhered to. The quantity of active ingredient of pesticides and herbicides used are recorded and are kept for at least 5 years.

A Major NC was issued for “Existing pesticide store found with pesticide class 1b not separated with other classes which against the compliance of Occupational Safety and Health Act 1994 (Act 514) and USECHH regulation, to prevent unauthorized use.

A Major NC was issued for “Medical surveillance report is not available. No proof of medical surveillance is done for pesticides operator”.

A Minor NC was issued for “Estates are using pesticide contains active ingredients, Paraquat. However, no plan to reduce it”.

MA 4.7 OSH policy available in bilingual at all appropriate locations [notice board] that being reviewed annually. It dated on 01/02/2009 that approved by group Estate Manager. A log book [by section] available to ensure safe work environment in place. Verified monthly management meeting minutes that effectively reviewed the OHS needs. Safety organization chart indicates, each facilities have an own safety committee chairman.

A training programme is in place for year 2012-2013. To have an indication of the planned trainings as for monitoring purposes. Safety meeting planned





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once in 3 months, however daily briefings includes of the main issues that needed immediate attention by both management and employees. This is the platform for raising safety issues. Accident and emergency SOP and instructions available. These are included in the safety manual for the estate.

Records of accidents are maintained through the JKKP 6 and JKKP 8 forms as per the requirement of DOSH. These records are maintained in the offices and sent to DOSH on a quarterly and annual basis. LTI is calculated and tabulated in the JKKP 8 form and also in the minutes of OSH meeting.

In mill the risk assessment was carried out by process such as weighbridge, loading ramp, sterilizer area, hoisting crane & thrasher, engine room, press and digester area, water treatment, workshop, laboratory, boiler station and warehouse. All accidents are then investigated by a safety committee within 2 days. The number of loss time accidents recorded as to reduce or eliminate near miss or accidents. Estate is effectively practicing OHSAS 18001 for safety & health.

The monitoring of noise level was carried out by 3rd party. Reference document kept on document number: [FPI/L4/QOHSE-2.1]. The Engineering and administrative controls to prevent hearing loss of mill workers exposed to noise are as follows :

Performing periodic service on machine by external technician (supplier) and preventive maintenance

Performing vibration monitoring on critical machine/ equipment

Putting “No Entry for Unauthorized Personal” sign for certain area which is identified as high noise area

Providing adequate PPE (Ear Plug /Ear Muff) for employee or visitor

All local workers are covered with SOCSO and Takaful insurance and proof of payment and claims in the event of an accident was sighted in the mill and estate office. The foreign workers are covered with Foreign Workers Compensation Scheme (FWCS). The policy for the year 2013 was sighted and coverage was for all workers working in the mill and estates.

A Major NC was issued for “Found to have a small tractor was used without proper tyre which has worn out till the rim. Despite the condition, the tractor is still being used. PPE records are not consistent which have raised doubt whether the PPE has been issued or not. Last available was year 2011 July. First aid kit was not easy to access as the visibility very poor and some are kept locked”.

MA 4.8 Training plan established based on the risk assessment on social, safety and environment. Trainings conducted were recorded in the various trainings record books and it was complete with attendance records, training materials and photographs of the training. The fire fighting squad headed by the safety officer and mill manager being the advisor. Sighted the OHS Emergency Evacuation team chart dated on Jun 2012. Training programes developed for each processing stages, such as sterilizer, threshing, pressing, clarification, empty bunch treatment, kernel, water treatment boiler, laboratory, decanter solid dry, workshop, despatch, biogas, warehouse. Ad hoc trainings such as OSH for contractor, legal, collective agreement done by the safety officer.

A Major NC was issued for “There is no training needs analysis list, does not have any training matrix, no evaluation of training and effectiveness. So far no RSPO or SCCS training conducted. Staff selected for training was only based on head of department and regular workers are briefed during morning muster call. So far, only emergency training”.





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

Criterion by Audit

Summary

Environmental Impact Assessment has been carried out by the mill and estates. 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. 4 major non-conformities were raised at each indicators except for 5.4 & 5.5.

MA 5.1 Sighted assessment records for Identification of Environmental Aspect & Impact registered form FPI/L4/QOHSE-1.8] for FFB receiving & transporting, office, workshop, effluent pond etc. The format used that inclusive of criterion such as activities, types of operation, input, volume, output, impact and evaluation criteria. Based on the assessment conducted, a significant impact register list established with mitigation measures identified for those activities with scores greater than 18.

There is column indicates of the positive or negative impacts to the environment. However there is need for improvement in identifying the impact level as some of the negative impact should falls in positive column. Sighted the “Identification of Environmental Aspect & Impact” assessment for year 2012. Observed the rating system determine clearly whether it concerning the environmental context in detail.

Format used [F.J2 – IMSL2/L41.4 Pind 0] same as the other estates as it being practice within FGV group of companies. The impacts from estate operations, which covers land preparation and clearing (if any) right up till the delivery FFB to the mill is assessed through stakeholder consultation. The impacts from mill operations from reception of FFB in the mill right up till effluent treatment is also assessed in the similar way. In general the format is made specific enough the details on where, what, when, how, why and who.

A Major NC was issued for “There is no evidence that the stakeholders have been consulted and not all impact has been documented. The result is not rather unclear nor action taken to mitigate the impact identified”. No follow up plan to monitoring the negative impact in the EIA.

MA 5.2 SOP-11.0 [High Conservation Value / Conservation Area Management] established. HCV assessments done [based on Malaysia National Interpretation of the international HCV Toolkit] by the Felda Agriculture Services [FASSB], Syarifah Nur Afni in 2011. The HCV assessment has identified 2 HCV areas, namely the riparian zone of a river and community area with some fruit trees.

Sighted the report detailed on some protected species in sporadic occurrence, such as wild boars, monitor lizard, squirrels, monkeys and ayam hutan [jungle fowl]. Site visit to estate evidenced of sign boards are in place for buffer zone and “No Hunting or fishing. Signages are the best tool to create the awareness and serve as warning sign at all the appropriate areas within estate. Secondly patrolling at specific interval by the estate security personnel is evidenced.

A brief management plan established effectively since Nov 2012 and is in the primary stage. This plan is associated with a mile stone chart on activities how the estate can preserve the species. Signages seen as the best tool to create the awareness and serve as warning sign at all the appropriate areas within estate. Secondly patrolling at specific interval by the estate security personnel is evident.

A Major NC was issued for “Estate has identified Sg. Sibol river as HCV 4. However, there is no specific HCV assessment conducted to the identified HCV. No management plan for HCV 4 (Sibol River)”.





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MA 5.3 Waste products identified in the aspect and impact assessment [FPI/L4/QOHSE-1.7]. In mill the waste identified as schedule and non-schedule waste that contributed from offices, mill operations and engineering works. No recycle program for used oil as it being categorized as schedule waste. There is sufficient waste collecting bins mill wide that enable employees to dispose the waste according to the label [glass, paper, plastic].

Identification of waste in estates has been sighted along with 3R program and the types of waste identified are fertilizer bags, plastic, paper, glass, wood, used tires, HDPE and organic waste. Verified the Jadual 5[inventory of schedule waste] & 6 [consignment note] with proper records maintained. Sighted Jadual 5 & 6 for SW102, SW305, SW 306 and SW 410.

A Major NC was issued for “In some facility, list of waste is available but there is no evidence provided to demonstrate sources of pollution in order to control or reduce the waste. No plan developed to mitigate leaking from tractor at tractor parking bay”.

MA 5.4 The mill and estate have recorded and monitoring their renewable and non-renewable fuel usage. Diesel usage is recorded by daily and being tabulated into monthly comparison table. There are 6 machines using diesel namely, locomotive, pay loader, TCM, tractor, bobcat and Cummins. i.e: the mill has recorded 148,943 litre of diesel in Jan - Nov 2012 for processing 108,850 MT of FFB that equals to 1.37 litre/MT.

MA 5.5 Sighted a memo dated [138/840/4051/J3/31] dated on 11/10/2010 from Felda Palm Industries for the open burning policy enforcement. No opening burning evidence observed during site visit to mill and estates. Sighted a letter from Department of Environment Johor whom enforcing the policy of open burning as well to increase the patrolling interval during dry season.

Policy is explained to all the employees at all operating units. Staff and workers interview reveal that they are aware of the policy. Policy for replanting is well implemented including fencing, pre felling planning, shredding of palms, lining on steep terrain, land preparation with zero burning. Old palm will be felled, chipping and pulverizing.

MA 5.6 Source of emissions from mill is identified at each operating station. The type and quantity of pollutants generated such as fibre, shell, scrap iron, EFB, effluent, schedule waste, waste oil from diesel tank, and emission from generator set, boiler ash and dust from the soot blower are well documented. Stack emissions analysis are done twice a year as per the Environmental Quality Act 1974 requirements and records of this were sighted in the mill. The effluent (POME) quantity is monitored on a daily and monthly basis and a summary is available and was sighted.

A Major NC was issued for “Estate has no documented plan for mitigation of pollution and emission which are identified in aspect and impact even though not all are documented”.

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

Criterion by Audit

Summary

The mill and estates have conducted the social impact assessment in a participative manner. The relevant policies are in place and fully implemented across the board. Communication and consultation as well complaints and grievances procedure are well communicated and adhered to. There are no evidence of workers been discriminated against in any way and all are being paid their fair wages. The workers quarters at estate were up to living standards and the gender committee addresses issues specific to women’s needs. A major non-conformity was raised for employment contract.





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MA 6.1 The mill and estates have conducted their Social Impacts Assessment for 2013. The SIA details the impact of operations and new activities to the social well-being of the workers and the community and steps that need to be taken to reduce any negative impacts should there be any. The assessment was conducted through stakeholder meetings held by the mill and estates. Minutes of meeting of the stakeholder consultation as well as the attendance list was sighted in the estate and mill offices.

Any negative impacts from the assessment will be mitigated within a specified time-frame. The SIA is updated on an annual basis to take into account the changes and new activities that have taken place within that time-frame. Non-restrictive format incorporating elements spelt out in this criterion were shown; it was done in participatory way. The main issue that was raised during this assessment is the impact of the foreign workers to the local workers. Overall there is evidence a documented social impact assessment conducted successfully”.

MA 6.2 The mill and estates have a communication and consultation procedure in place and this was sighted in their respective offices. The procedure for communication and consultation is as follows:

Receipt of communication from the stakeholder by the nominated plantation management official.

Communication will be recorded and will be attended to and resolved within 30 days.

If the matter cannot be resolved within 30 days, all the related document will be sent to the company secretary for further action.

The matter will be forwarded to the Grievances Executive Committee who will decide on the action to be taken.

Action decided by the Executive Committee and outcome of the resolution will be documented and stakeholder is informed accordingly.

Should the outcome be not resolved to the mutual satisfaction of the stakeholder and the company, it will then be dealt with under the relevant provisions of the law.

The nominated management staff [estate and mill manager] is responsible for handling matter pertaining to communication and consultation with internal and external stakeholders. A complete list of stakeholders covering mill and estate employees, contractors and suppliers, education and medical facilities and government agencies are available and was sighted in the mill and estate offices.

MA 6.3 The mill and the estates have a complaints and grievances procedure that serves as the SOP for handling of complaints and grievances from both internal and external stakeholders. Documentation sighted for dispute and resolve stated in procedure ML-1A/L2-PR4 (0) dated Mac 2012. This procedure has been displayed in the offices and also on notice boards around the mill and estates.

A complaint and grievances logbook is kept in mill and estates that contains the details of the complaints made, the complainant or aggrieved party, the action taken to resolved the complaint or grievance and the date the action was taken. All complaints and grievances were promptly attended to and records of this were sighted in the mill and estate offices. Workers who were interviewed confirmed that they are aware of the complaints and grievances procedure and how to channel their grievances.

MA 6.4 No negotiations concerning compensation for loss of legal or customary rights is as per this assessment period [this land where the Mill stand s belong Government [given to the management.] ML-1A/L2-PR12 (0) Mac 2012 for a





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procedure for identifying legal and customary rights and a procedure for identifying people entitled to compensation.

No record registered as at audit date, proving any evidence that there was a 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.

MA 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. Sighted for,

Siti Munirah [ May 2012-RM 750]; Sabri [ Nov – RM 1314]

Deduction on KWSP, Perkeso, Yuran Felkop etc.

All workers were also provided with adequate housing that meets the requirements of the workers minimum standards of housing and amenities act 1990. Each unit of quarters will be occupied by a maximum of 2 workers per room; a 3 room quarters will house a maximum of 6 workers.

In general housing standards improved such as new staff quarters. Visual Assessment of all the housing facilities took place at each operation. On an estate level all settlers and on a mill level all workers are provided with comprehensive, solid housing- and social facilities; workers employed by Felda are provided with reasonable standard of housing (water supplied, medical- and welfare amenities available.

A Major NC was issues for “Sampled and interviewed employees in mill and estate; workers understood contract and payslip is evident. However, further auditing on the contractors responsibility for their worker who is working in Penggeli POM and Inas Selatan, either in Div. 1 or 2, reveal that the labour condition, payslip and labour requirements not evident; further site visit reveals that the contractors worker were working without proper drinking water for 2 days.

Workers contract were not evident at the time of audit, said that the contract is kept by Felda HQ; seen a request letter dated 24.2.2012 requesting for the contract but till today no action, thus the auditor unable to verify the contract`s term and condition. Sampled Jabber [Bangladesh -harvester], Pi`i [Indonesia].

MA 6.6 Mill and estate workers are free to bargain collectively either through the National Union of Plantation Workers (NUPW) or by forming groupings on their own to collectively bargain with the management of the mill or estates.The company has conducted meeting with labour union once a year. The last meeting with labour union was on Oct 2012, attended by labour unions representatives. The discussed issues are such as rubbish collection, discipline, discipline and performance, pay and bonus etc. The weekly assembly is noted as a ground for discussions on arising issues.

MA 6.7 Felda has a policy that prohibits under-aged children from working in the company. The mill and estates adhere to this policy. There are no children below ages of 17 working in the mill or estates and this was proven through the checking the list of employees as well as their bio-data and through field visits.

MA 6.8 Felda has an Equal Opportunity policy dated 1 January 2008 and signed by the Regional Director that is clearly displayed in the office and on the notice boards around the estates and mill. Both local and foreign workers enjoy the





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same scale of pay and provided with equal housing and work facilities. This was confirmed though interview with workers from both the mill and estates and also through verification of contracts of service and pay slips of workers. No evidence of discrimination based on race, skin colour, religion, gender, national origin, ancestry, disability, marital status, and sexual orientation was found in both the mill and estates.

MA 6.9 The Policy on Sexual Harassment, Violence and Reproductive Rights has been displayed at all estates and mill. This policy has also been communicated to all staff and workers and this was evident through the training records. Gender committees have been established in the mill and both the estates. A specific grievance mechanism for workers to voice their grievances with regards harassment of a sexual or violent nature has been established.

Under this mechanism, the aggrieved worker will lodge a complaint or grievance directly to the Chairperson of the Gender Committee and the chairperson will then bring this matter up with management of the estate or mill and this matter will be deliberated within closed doors in a meeting. Workers interviewed were aware of the policy against Sexual Harassment and Violence, the establishment of the gender committee at every operating unit and the specific grievance mechanism.

MA 6.10 The prices of FFB paid to the estates is in accordance with the prices set by the Malaysian Oil palm Board (MPOB) and the records of past and present prices of FFB, CPO and PK are kept by the Marketing Department of Felda and this information is provided to the mill adequetly.

MA 6.11 The mill and estates are committed and continiously contributes to local development. The Response and Requests logbook and letters of contributions detailing the type, purpose and amount of contributions were sighted in the mill and estate offices. From the record of CSR for 2011 - 2012, it was observed that some payments for cremation being made under the total budget allocated for amenities and welfare. A substantial amount being spent for local schools.

Principle 7: Responsible Development of New Plantings

Criterion by Audit

Summary No new plantings carried out as table 1.7.4 above denotes replanting.

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

Criterion by Audit

Summary

All the operating units are regularly monitoring and review their activities and develop and implement action plans that allow demonstrable continual improvement in key operations such as in minimizing use of certain pesticides, environmental impacts, maximizing recycling and minimizing waste or by-products generation, pollution prevention plans.

MA 8.1 Recycle programs are being monitored with the input of environmental management programme. Waste / used tyres are being used for land/gardening beautification. Old metals/scraps are being either sold or made use for any renovation works at the mill. EFB is seen collected by the estates for their fertilising programme. The mill’s waste water is treated using ponding system before discharging it into trenches for land irrigation. As for the expenditures contributed for environmental activities, are very much linked to disposal of household rubbish, disposal of schedule waste and effluent pond maintenance activities.

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.





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

4.3.1 Non-Conformities Identified during this Audit

NON CONFORMITY REPORT

NC number: 01

Client name: PSQM Department FGVPM

Date raised: 05/12/2012

Major or Minor: Major

Raised by: Simon

Aspect of standard: Criterion: 1.1.1

Records of requests and responses must be maintained.

Evidence of non-conformity:

There are no proper records of requests and responses maintained since Oct 2011 as most of the requests received were

treated verbally.

Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. Nominated staff has been reminded verbally and the logbook been verified for weakness.

Timeline for conformance: 60 Days

Review of corrective /improvement action: Log book of complain has been given to closed the non-conformity, minutes of meeting with the stakeholder date on

24.07.2013 is verified as the communication between stakeholder.

Assessors signature:

Date: 08/05/2013


NC number: 02




Raised by: Simon


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


The palm oil mill does not have a documented evidence of legal ownership or lease. Hence, there is no history of land

tenure and the actual legal means by the mill to use the land.

Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. A copy of the aggrement now onwards will also retained in mill.


Review of corrective /improvement action: Lease agreement between Felda and Felda palm industries date on 25 November 1996 is verified.


Date: 08/05/2013





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NC number: 03




Raised by: Simon


Pesticides shall be stored in accordance to the Occupational Safety and Health Act 1994 (Act 514) and Regulations and

Orders and Pesticides Act 1974 (Act 149) and Regulations.


Existing pesticide store found with pesticide class 1b not separated with other classes which against the compliance of

Occupational Safety and Health Act 1994 (Act 514) and USECHH regulation, to prevent unauthorized use.

Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. Due to space constrain it was overlooked and a new chemical store build as a corrective action.


Review of corrective /improvement action: Pictorial evidence of the new storage area is verified [60% completion] that be verified in next surveillance.


Date: 08/05/2013


NC number: 04




Raised by: Simon


Annual medical surveillance as per CHRA for plantation pesticide operators.


Medical surveillance report is not available. No proof of medical surveillance is done for pesticides operator.

Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. All workers have been send to the medical surveillances based on the letter 30.12.2012.


Review of corrective /improvement action: Record of the medical surveillance is verified as an evidence of all the workers is fit to works.


Date: 08/05/2013





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NC number: 05




Raised by: Simon

Aspect of standard: Criterion: 4.7.1- Evidence of documented Occupational Safety Health (OSH) plan which is in

compliance with OSH Act 1994 and FMM 1967 (Act 139). 4.7.1(b) All operations have been risk assessed and documented.

4.7.1 (i) First Aid equipment should be available at worksites.


Found to have a small tractor was used without proper tyre which has worn out till the rim. Despite the condition, the

tractor is still being used. PPE records are not consistent which have raised doubt whether the PPE has been issued or not.

Last available was year 2011 July. First aid kit was not easy to access as the visibility very poor and some are kept locked.

Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. A memo has been place at the first aid station, reminding the person in charge to always ensure first aid kit is available to all employees at the station. All the tyre is replace and keep in proper ways. PPE record updated.


Review of corrective /improvement action: The effectiveness of corrective actions will be verified during next assessment.


Date: 08/05/2013


NC number: 06




Raised by: Simon

Aspect of standard: Criterion: 4.8- A training programme (appropriate to the scale of the organization) that includes

regular assessment of training needs and documentation, including records of training for employees are kept.


There is no training needs analysis list, does not have any training matrix, no evaluation of training and effectiveness. So far

no RSPO or SCCS training conducted. Staff selected for training was only based on head of department and regular workers

are briefed during morning muster call. So far, only emergency training.

Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. Training calendar for 2012 and 2013 was established that consisted for RSPO, SCCs and agriculture practices. Training records since 2011 were retrieved and a post evaluation conducted.


Review of corrective /improvement action: The effectiveness of corrective actions will be verified during next assessment.


Date: 08/05/2013





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NC number: 07




Raised by: Simon

Aspect of standard: Criterion: 5.1.1 and 5.1.2

Documented aspects and impacts risk assessment that is periodically reviewed and updated. Environmental improvement

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


There is no evidence that the stakeholders have been consulted and not all impact has been documented. The result is not

rather unclear nor action taken to mitigate the impact identified. No follow up plan to monitoring the negative impact in

the EIA.

Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. Stakeholder meeting has been conducted on 25.02.2013 to discuss about the impact of the environmental. Monitoring

record based on the EIA has been establish.


Review of corrective /improvement action: CA is accepted, however the auditor needs to interview the stakeholder during next assessment as part of verification.


Date: 08/05/2013


NC number: 08




Raised by: Simon

Aspect of standard: Criterion: 5.2.1 Identification and assessment of HCV habitats and protected areas within landholdings; and attempt assessments of HCV habitats and protected areas surrounding landholdings.

Evidence of non-conformity: Estate has identified Sg. Sibol river as HCV 4. However, there is no specific HCV assessment conducted to the identified HCV. No management plan for HCV 4 (Sibol River). Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. An HCV assessment was conducted accordingly along with a management plan for Sibol River.


Review of corrective /improvement action: Corrective action is accepted.


Date: 08/05/2013





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NC number: 09




Raised by: Simon

Aspect of standard: Criterion: 5.3.1 Documented identification of all waste products and sources of pollution.

Evidence of non-conformity: In some facility, list of waste is available but there is no evidence provided to demonstrate sources of pollution in order to control or reduce the waste. No plan developed to mitigate leaking from tractor at tractor parking bay.

Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. A plan been incorporated in the “Pelan tindakan mengurangkan impak Alam Sekitar”.


Review of corrective /improvement action: Sighted, the list of the waste is identified and the source has been identified.


Date: 08/05/2013


NC number: 10




Raised by: Simon

Aspect of standard: Criterion: 5.6.1 Documented identification of all waste products and sources of pollution.

Evidence of non-conformity: Estate has no documented plan for mitigation of pollution and emission which are identified in aspect and impact even though not all are documented.

Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. Established the “Plan tindakan mengawal pencemaran”.


Review of corrective /improvement action: Documented plan to mitigate the pollution is sighted.


Date: 08/05/2013





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NC number: 11




Raised by: Simon

Aspect of standard: Criterion: 6.5.1 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. [Documentation of pay and conditions.

Evidence of non-conformity: Sampled and interviewed employees in mill and estate; workers understood contract and payslip is evident. However, further auditing on the contractors responsibility for their worker who is working in Penggeli POM and Inas Selatan, either in Div. 1 or 2, reveal that the labour condition, payslip and labour requirements not evident; further site visit reveals that the contractors worker were working without proper drinking water for 2 days.

Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. Contractor has been informed based on the letter dated 11 December 2012, to provide workers with clean water. A copy of the contract of the workers was given to the auditors and the contract conforms to the local law and regulations.


Review of corrective /improvement action: NC is closed.


Date: 08/05/2013


NC number: 12




Raised by: Simon

Aspect of standard: Criterion: 6.5.2 Labour laws, union agreements or direct contracts of employment detailing payments and conditions of employment (e.g. Working hours, deductions, overtime (maximum of 90 hrs per month), sickness, holiday entitlement, maternity leave, reasons for dismissal, period of notice, etc) are available in the language understood by the workers or explained carefully to them by a plantation management official in the operating unit.

Evidence of non-conformity: Workers contract were not evident at the time of audit, said that the contract is kept by Felda HQ; seen a request letter dated 24.2.2012 requesting for the contract but till today no action, thus the auditor unable to verify the contract`s term and condition. Sampled Jabber [Bangladesh -harvester], Pi`i [Indonesia].

Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. A copy of the contract of the workers was given to the auditors and the contract conforms to the local law and regulations.


Review of corrective /improvement action: Hereby the NC is closed.


Date: 08/05/2013





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NC number: 13



Major or Minor: Minor

Raised by: Simon

Aspect of standard: Criterion: 4.6.7 Documented evidence that use of pesticides categorized as WHO Type 1A or 1B, or listed by the Stockholm or Rotterdam Conventions, is reduced and/or eliminated. Adoption of suitable economic alternative to paraquat as suggested by the EB pending outcome of RSPO study on IWM.

Evidence of non-conformity: Estates are using pesticide contains active ingredients, Paraquat. However, no plan to reduce it.

Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. A monitoring record been established and communicated to all operating units.

Timeline for conformance: Before next surveillance

Review of corrective /improvement action: Will be verified during next surveliance audit


Date: 08/05/2013

4.3.2 Non-Conformity Identified during the last ASA

This is main assessment

4.3.3 Observations Raised During this Audit

Non-Noted

4.4 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?





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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

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)

PENGGELI POM 45 FELDA Penggeli Palm Oil Mill, Peti Surat 28, 81440 Bandar Tenggara, Johor.

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 31,322 8,890 Forecasted volumes between August 2013 to July 2014. See also 1.6 above.

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

Mill is certified to ISO 9001, EMS 14001 and OHSAS 18001 and has standard operating procedures (SOP) under Mill Quality Management System. Mill is operated with 45 MT/hr. The information is directly recorded in computer system and each delivery is individually recorded. A summary of daily incoming FFB shows the total quantity FFB received from own plantation. FFB price is displayed at the weighbridge and OER and KER calculation is based from HQ in Kuala Lumpur. After CPO and PK (as products) extracted from FFB, CPO is going to storage tanks and PK is to kernel silo. Products will despatch by instruction from HO. Mill is still under preparation stage to received certified FFB and training for RSPO is under 2013 programme.

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

Recommendations made: Yes

Summary of non-compliances:

None Found

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: April 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: 20 August 2013

All minor NCs to be closed by: Before next surveillance audit

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 DEPARTMENT

Date: 18.10.2013 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: Simon Selvaraj

Position: Lead Auditor

Date: 21 June 2013 Signature

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

Date: 30th December 2013 Signature





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Appendix 1: Location Map for this Certification Unit

From 1.9, the location map(s)





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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 · RSPO Principles & Criteria Main Assessment Report Report Number CU826924...

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