ASSESSMENT REPORT Roundtable on Sustainable ... - RSPO

PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

Roundtable on Sustainable Palm Oil Certification R S P O

[ ]Stage-1 [√] Stage-2 [ ] Surveillance [ ] Re-Certification

Name of Management Organisation

: Aring A POM, Felda Palm Industries Sdn Bhd subsidiary of FELDA GLOBAL

VENTURES HOLDINGS BERHAD

Plantation Name : Felda Global Ventures Plantations Malaysia Sdn Bhd: Aring 2 Estate, Aring 3 Estate, Aring 4 Estate, Aring 5 Estate, Aring 6 Estate, Aring 8 Estate, Aring 10 Estate, Aring 11 Estate and Aring 15 Estate

Location :

Mukim Relai, Jajahan Gua Musang, Kelantan, Malaysia

Certificate Code : MUTU-RSPO/103

Date of Certificate Issue : 28 November 2017 Date of License Issue : 28 November 2017

Date of Certificate Expiry : 27 November 2022 Date of License Expiry : 27 November 2018

Assessment Assessment

Date PT. Mutuagung Lestari

Auditor Reviewed

by Approved

by

ST-2 9 to 14 September 2017 Trismadi Nurbayuto (Lead Auditor), Sandra

Purba, Ardiansyah, Ebnu Holdoon S

Ganapathy

Ramasamy

Tony

Ariffiarachman

Assessment Approved by MUTUAGUNG LESTARI on:

ST-2 28 November 2017

PT Mutuagung Lestari • Raya Bogor Km 33,5 Number 19 • Cimanggis • Depok 16953• Indonesia

Telephone (+62) (21) 8740202 • Fax (+62) (21) 87740745/6•Email: [email protected] • www.mutucertification.com

MUTU Certification • Accredited by Accreditation Services International

on March 12th, 2014 with registration number ASI-ACC-055

http://www.rspo.org/members/5855/FELDA-GLOBAL-VENTURES-HOLDINGS-BERHAD

http://www.rspo.org/members/5855/FELDA-GLOBAL-VENTURES-HOLDINGS-BERHAD

http://www.mutucertification.com/

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.7 (August 2016)

Prepared by Mutuagung Lestari for Aring A POM – Felda Global Ventures Holdings Berhad

TABLE OF CONTENT

FIGURE ................................................................................................................................................................ 1

Figure 1. Location Map of Aring A Pom ................................................................................................................. 1

Figure 2. Operational Map of Aring ...................................................................................................................... 2

Glossary ................................................................................................................................................................ 3

1.0 SCOPE OF THE CERTIFICATION ASSESSMENT ............................................................................................. 4

1.1 Assessment Standard Used ................................................................................................................................. 4

1.2 Organisation Information ....................................................................................................................................... 4

1.3 Type of Assessment .............................................................................................................................................. 4

1.4 Locations of Mill and Plantation ............................................................................................................................ 4

1.5 Description of Area Statement .............................................................................................................................. 5

1.6 Planting Year and Cycles ...................................................................................................................................... 5

1.7 Description of Mill and Supply Base ..................................................................................................................... 6

1.8 Estimate Tonnage of Certified Product.................................................................. Error! Bookmark not defined.

1.9 Other Certifications ............................................................................................................................................... 8

1.10 Time Bound Plan .................................................................................................................................................. 8

2.0 ASSESSMENT PROCESS ................................................................................................................................. 14

2.1 Assessment Team ............................................................................................................................................... 14

2.2 Assessment Methodology, Assessment Process and Locations of Assessment ................................................ 14

2.3 Stakeholder Consultation and Stakeholders Contacted ...................................................................................... 17

2.4 Determining Next Assessment ............................................................................................................................ 18

3.0 ASSESSMENT FINDINGS ................................................................................................................................. 19

3.1 Summary of Assessment Report of the RSPO Certification ............................................................................... 19

3.2 Summary of Assessment Report of Supply Chain Requirements ....................................................................... 46

3.3 Conformity Checklist of Certificate and Logo Use ............................................................................................... 48

3.4 Summary of RSPO Partial Certification .............................................................................................................. 49

3.5 Identification of Findings, Corrective Action, Observations, OFI and Noteworthy Positive Components ............ 58

3.6 Summary of Arising Issues from Public and Auditor Verification ......................................................................... 66

4.0 CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITYError! Bookmark not defined.

4.1 Formal Sign-off of Assessment Findings ............................................................... Error! Bookmark not defined.

APPENDICES .................................................................................................................................................... 69

Appendix 1. List of Stakeholder Contacted in the RSPO Certification Process ................................................. 69

Appendix 2. Assessment Program ..................................................................................................................... 71


RSPO ASSESSMENT REPORT

SPO – 4006a.7 (August 2016) Page 1 Prepared by Mutuagung Lestari for Aring A POM – FPISB subsidiary of Felda Global Ventures Holdings Berhad

FIGURE

Figure 1. Location Map of Aring A POM




Figure 2. Operational Map of FGVP(M) Aring 2

































PT. MUTUAGUNG LESTARI



Glossary

BOD : Biological Oxygen Demand LD50 : Lethal Dosage 50

CB : Certification Body LCC : Legume Cover Crop

CEO : Chief Executive Operation LUCA : Land Use Change Analysis

CDD : Certification & Due Diligence MAPA : Malaysian Agriculture Planters Association

CPO : Crude Palm Oil MSDS : Material Safety Data Sheet

DOE : Department of Environment MPOA : Malaysia Palm Oil Association

DOSH : Department on Safety and Health MPOB : Malaysia Palm Oil Board

EAI : Environment Aspect Impact NGO : Non-Government Organization

EFB : Empty Fruit Bunches NUPW : National Union Plantation Workers

EIA : Environmental Impact Assessment OER : Oil Extraction Rate

EQA : Environment Quality Act OFI : Opportunity For Improvement

EMP : Environmental Management Plan OHS : Occupational Health and Safety

FASSB : Felda Agriculture Service Sdn. Bhd PIC : Person In Charge

FFB : Fresh Fruit Bunches PK : Palm Kernel

FGV : Felda Global Ventures POM : Palm Oil Mill

FGVHB : Felda Global Ventures Holdings Berhad PPE : Personel Protective Equipment

FGVP(M) : Felda Global Ventures Plantation Malaysia PPR : Pollutin Prevention Plan

FPISB : Felda Palm Industries Sdn Bhd RaCP : Remediation and Compensation Plan

GHG : Green House Gases RSPO : Roundtable on Sustainable Palm Oil

HCV : High Conservation Value SOCSO : Social Security Organization

HCVRN : High Conservation Value Resources Network SCCS : Supply Chain Certification System

HIRARC : Hazard Identification Risk Assessment and Risk Control

SIA : Social Impact Assessment

HRM : Human Resources Management SOP : Standard Operating Procedure

IPM : Integrated Pest Management SPAN : Suruhanjaya Perkhidmatan Air Negara

ISO : International Standard Organization SW : Schedule Waste

JKOA : Jabatan Kemajuan Orang Asli WTP : Water Treatment Plant

KER : Kernel Extraction Rate WWTP : Waste Water Treatment Plant

KMAM : Kawalan Mutu Air minum




1.0 SCOPE OF THE CERTIFICATION ASSESSMENT

1.1 Assessment Standard Used

Malaysia National Interpretation - RSPO MY-NIWG of Principles and Criteria (P & C) for Sustainable Palm Oil Production. Endorsed by RSPO Board of Governors 6 March 2015.

RSPO Supply Chain Certification Standard For organizations seeking or holding certification Adopted by the RSPO Board of Governors on 21 November 2014 (Module D for CPO Mill)

1.2 Organisation Information

1.2.1 Organisation name listed in the certificate

Felda Palm Industries Sdn Bhd subsidiary of FELDA GLOBAL VENTURES HOLDINGS BERHAD

1.2.2 Contact person Mr. Norazam Abdul Hameed

1.2.3 Organisation address and site address RSPO Registered Company: Felda Global Ventures (HQ) Level 45, Menara Felda, Platinum Park, No. 11, Persiaran KLCC, 50088 Kuala Lumpur, Malaysia.

1.2.4 Telephone (+ 603) – 26005349

1.2.5 Fax (+ 603) – 26987816

1.2.6 E-mail [email protected]

1.2.7 Web page address www.feldaglobal.com

1.2.8 Management Representative who completed the application for certification Mr. Anthonius Sani

1.2.9 Registered as RSPO member 1–0225–16–000–00, 27 December 2016

1.3 Type of Assessment

1.3.1 Scope of Assessment and Number of Management Unit

Palm Oil Mill and supply base: Aring A Palm Oil Mill, Aring 2 Estate, Aring 3 Estate,

Aring 4 Estate, Aring 5 Estate, Aring 6 Estate, Aring

8 Estate, Aring 10 Estate, Aring 11 Estate and Aring

15 Estate

1.3.2 Type of certificate Single

1.4 Locations of Mill and Plantation

1.4.1 Location of Mill

Name of Mill Location

Coordinate

Latitude Longitude

Aring A Peti Surat 30, 18300 Gua Musang, Kelantan

N 4° 56' 27"

E 102° 21' 51"

1.4.2 Location of Certification Scope of Supply Base

Name of Supply Base

Location Coordinate

Latitude Longitude

FGVPM Aring 2 P.O Box 52, 18300 Gua Musang, N 4º 53’ 51.0” E 102º 21’ 31”

mailto:[email protected]

http://www.felda.net.my/




Kelantan

FGVPM Aring 3

Peti Surat 43, 18300 Gua Musang, Kelantan

N 4º 53’ 49” E 102º 21’ 32”

FGVPM Aring 4

Peti Surat No.2, 18300 Gua Musang, Kelantan

N 4º 53’ 51” E 102º 19’ 10”

FGVPM Aring 5

P.O Box 02, 18300 Gua Musang, Kelantan

N 4º 48’ 30” E 102º 19’ 12”

FGVPM Aring 6


N 4º 57’ 9” E 102º 23’ 56”

FGVPM Aring 8


N 4º 58’ 26” E 102º 26’ 16”

FGVPM Aring 10


N 4º 55’ 54” E 102º 26’ 57”

FGVPM Aring 11

Peti Surat 24, 18300, Gua Musang,Kelantan.

N 4º 55’ 54” E 102º 26’ 54”

FGVPM Aring 15

Peti Surat 51, 18300 Gua Musang, Kelantan.

N 4º 57’ 21” E 102º 17’ 42”

1.5 Description of Area Statement

1.5.1 Tenure

Private / Holdings 19,912.16 Ha

Community - Ha

1.5.2 Area Statement

Total area 19,912.16 Ha

Mature area 12,460.05 Ha

Immature area 3,239.14 Ha

Mill and Emplasment 370.79 Ha

Trench/ swamp/ river 236.13 Ha

Infrastructure (Housing area, Offices, field,) 397.43 Ha

Nursery (Aring 2, 4, 5, 10) 60.29 Ha

Air strip (Aring 4) 15.52 Ha

Others area (highway, road) 3,063.81 Ha

Conservation Area (Areas include to planted area) 69.0 Ha

1.6 Planting Year and Cycles

1.6.1

Age profile of planting year

Planting

Year

Hectarage (Ha)

Aring 2

Aring 3

Aring 4

Aring 5

Aring 6

Aring 8

Aring 10

Aring 11

Aring 15

Total

1990 - - 326.47 410.77 243.52 575.09 1615.81 - - 3,171.66

1993 - - - - - 142.00 - - - 142.00

1996 - - - - - - - 200.91 - 200.91




1999 - - - 234.10 - - - - - 234.10

2000 174.81 247.46 - - 270.86 - - 314.08 - 1,007.21

2001 - - - - 208.94 - - - - 208.94

2004 - - - - - - - 287.18 - 287.18

2006 351.63 499.21 - - - - - - - 850.84

2007 298.86 - - - - - - - - 298.86

2008 122.85 - - - 159.88 203.97 - - 385.08 871.78

2009 - - - - 180.29 143.39 - - 248.00 571.68

2010 480.28 96.37 - - 220.76 - - - 270.07 1,067.48

2011 - 277.33 266.72 - - 179.09 - - - 723.14

2012 223.12 293.73 394.81 - 374.19 258.95 - - - 1,544.80

2013 - 233.00 385.83 180.02 230.79 260.84 - - - 1,290.48

2014 - - - 471.49 275.71 437.64 - - 1,184.84

2015 - - 517.46 - 180.29 - - - 697.75

2016 - - 50.74 288.01 - 338.75

2017 - 288.88 397.27 320.64 - 1,006.79

TOTAL 1651.55 1647.10 2180.17 1296.38 2345.23 2648.98 1615.81 1410.82 903.15 15,699.19

1.6.2 New Planting area after January 2010 - Ha

1.6.3 Planting Cycle 2nd Cycle

1.7 Description of Mill and Supply Base

1.7.1 Description of Mill

Name of Mill Capacity

(tonnes/ hour) FFBProcessed (tonnes/year)

CPO Palm Kernel

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Aring A 54 242,733.59 49,232.84 20.28 11,623.52 4.79

* Source: Production data from September 2016 – August 2017

1.7.2 Description of Certification Scope of Supply Base

Name of Estate Total Area

(Ha)

Planted Area (Ha)

FFB (tonnes/year)

Yield (tonnes/ ha/ year)

Supplied to Mill

FFB (tonnes/year)

%

Aring 2 2,073.16 1,651.55 22,142 13.41 22,142 100

Aring 3 2,004.66 1,647.10 18,348 11.14 18,348 100

Aring 4 2,756.19 2,180.17 7,863 3.60 7,863 100

Aring 5 1,568.13 1,296.38 9,058 6.99 9,058 100

Aring 6 3,282.43 2,345.23 21,472 9.15 21,472 100

Aring 8 3,677.60 2,648.98 21,828 8.24 21,828 100

Aring 10 1,856.82 1,615.81 27,565 17.06 27,565 100

Aring 11 1,510.37 1,410.82 6,086 4.31 6,086 100




Aring 15 1,182.80 903.15 2,886 3.19 2,886 100

TOTAL 19,912.16 15,699.19 137,248.00 8.74 137,248.00 100

* Source: Production data from September 2016 – August 2017

1.7.3 FFB description from other source

Name of sources/Organisation (RSPO certified / non-

certified)

Type of Organisation Number of

smallholders / Location

Production Area (Ha)

Supplied to Mill

FFB (tonnes/year)

Aring 1 Associate Smallholders 173 832.46 7287.37

Tai Ichi Enterprise Dealer Machang - 8293.54

Fauzi Lim Dealer

Tanah Merah

- 23072.33

Kukuh Cemerlang Dealer Aring 10 - 9890.11

Padang Mutiara Dealer Aring 15 - 11807.22

Sem Wah Dealer Aring 05 - 5235.39

First Nationwide Dealer Aring 03 - 8197.37

Kim Ma Oil Palm Dealer Aring 05 - 18406.46

Plantiful Gold Dealer

Gua Musang

- 4898.96

Gemalai Dealer Aring 05 - 455.67

PMBK Dealer Aring 08 - 756.36

Ritma Sakti Dealer

Aring 15 & Aring 01

- 498.35

STP Resources Dealer Aring 05 - 2072.08

Rakyat Harmoni Dealer Laloh - 1015.76

KPF Plantations Dealer Aring 06 - 462.97

JFL Holdings Dealer Paloh 04 - 2467.73

Tai Ichi Enterprise Dealer Aring 08 - 667.92

TOTAL 105,485.59

* Source: Production data from July 2016 – June 2017

1.7.4 Product categories FFB, CPO, PK

1.8 Tonnage of Product

1.8.1 Past Annual Claim Certified Product Previous Certificate Claim …. to ….

(tonnes/year)

Actual certified product …. to ….

(tonnes/year)

FFB Production - -

CPO Production - -

Palm Kernel (PK) Production - -

* it will be verified on next surveillance.

1.8.2 Product Selling

Tonnage of selling product Actual selling product period …. until ….

CSPO -




CSPK -

CPO under other scheme trading (e.g ISCC, RFS)

-

CPO under conventional trading (if any)

-

PK under other scheme -

PK under conventional trading (if any) -

* it will be verified on next surveillance.

1.8.2 Estimate of Certified FFB Claim

Name of Estates

Total Area (Ha)

Planted Area (Ha)

FFB (tonnes/ year)

Yield (tonnes/ha/year)

Aring 2 2,073.16 1,651.55 29,041.00 17.58

Aring 3 2,004.66 1,647.10 22,254.00 13.51

Aring 4 2,756.19 2,180.17 11,500.00 5.27

Aring 5 1,568.13 1,296.38 10,283.00 7.93

Aring 6 3,282.43 2,345.23 35,739.00 15.24

Aring 8 3,677.60 2,648.98 25,870.00 9.76

Aring 10 1,856.82 1,615,81 11,915.00 7.37

Aring 11 1,510.37 1,410.82 6,794.00 4.81

Aring 15 1,182.80 903.15 4,316.00 4.78

TOTAL 19,912.16 15,699.19 157,712.00 10.04

*Projected FFB production for 12 months

1.8.3 Estimate of Certified Palm Product Claim

Name of Mill Capacity (tonnes/

hour)

FFB Processed

(tonnes/year)

CPO Palm Kernel Supply Chain

Module Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Aring A 54 157,712 33,120 21.00 7,949 5.04 MB

*Projected CSPO and CSPK production for 12 months

1.9 Other Certifications

ISO 9001:2015 Aring A POM No cert : QMS 03093, Valid from 24/02/2017-11/08/2019

ISO 14001: 2004 Aring A POM No cert : EMS 00769, Valid from 24/02/2017-14/09/2018

OHSAS 18001:2007 Aring A POM No cert : OHS 00691, Valid from 24/02/2017-23/02/2020

ISCC -

Others -

1.10 Time Bound Plan

1.10.1 Time Bound Plan for Other Management Units

Management Unit Estate (Supply Base)

Time Bound

Location Status Mill Time




bound Plan

Selancar 2B 2017 FGVPM Selancar 6 FGVPM Selancar 8 FGVPM Selancar 9

2017 Malaysia Audited

Lepar Hilir 2017 FGVPM Lepar Hilir 5 FGVPM Lepar Hilir 6 FGVPM Lepar Hilir 8


Aring A 2017 FGVPM Aring 2 FGVPM Aring 3 FGVPM Aring 4 FGVPM Aring 5 FGVPM Aring 6 FGVPM Aring 8 FGVPM Aring 10 FGVPM Aring 11


Kechau B 2017 FGVPM Kechau 6 FGVPM Kechau 8 FGVPM Kechau 9 FGVPM Kechau 10


Bukit Sagu 2017 FGVPM Bukit Sagu 4 FGVPM Bukit Sagu 6 FGVPM Bukit Sagu 7 FGVPM Bukit Sagu 8


Keratong 09 2017 FGVPM Bera Selatan 5 FGVPM Bera Selatan 7 FGVPM Merchong FGVPM Keratong Timur FASSB Merchong


Lepar Utara 6 2017 FGVPM Lepar Utara 7 FGVPM Lepar Utara 8 FGVPM Lepar Utara 9 FGVPM Lepar Utara 11


Besout 2017 FGVPM Besout 6, FGVPM Besout 7

2017 Malaysia To be Audited by CB

20-21 December 2017 (ST-1)

Kemasul 2017 FGVPM Mengkarak 1 FGVPM Mengkarak 2


30 October – 3 November 2017

(ST-2)

Triang 2017 FGVPM Triang 2 FGVPM Triang Selatan 1 FGVPM Triang 4


4-9 December 2017 (ST-2)

Lepar Utara 4 2017 FGVPM Lepar Utara 4 FGVPM Lepar Utara 10 FGVPM Lepar Utara 14


Maokil 2017 FGVPM Maokil 6 FGVPM Maokil 7


23-27 October 2017 (ST-2)




Palong Timur 2017 FGVPM Palong Timur 4/5 FGVPM PALONG TIMUR 06

2017 Malaysia To be Audited by CB 20-24

November 2017 ST-2

Selendang 2017 FGVPM Selendang 3 FGVPM Selendang 4 FGVPM Selendang 5 FGVPM Berabong 1


9-13 October 2017 (ST-2)

Krau 2017 FGVPM Krau 2 FGVPM Krau 4

2017 Malaysia To be Audited by CB 13-16

November 2017 (ST-2)

Tenggaroh Timur

2017 FGVPM Tenggaroh 12 FGVPM Tenggaroh Timur 2


Chini 3 2018 FGVPM Terapai 1 FGVPM Chini Timur 4

2018 Malaysia

Nitar 2018 FGVPM Nitar Timur 2018 Malaysia

Jerangau Baru 2018 FGVPM Rantau Abang 1 FGVPM Rantau Abang 2 FGVPM Chador 1

2018 Malaysia

Serting Hilir 2018 FGVPM Tembangau 3 FGVPM Tembangau 5 FGVPM Tembangau 6 FGVPM Tembangau 7 FGVPM Tembangau 8 FGVPM Tembangau 9 FASSB Serting Hilir

2018 Malaysia

Serting 2018 FGVPM Palong 17 FGVPM Palong 18 FGVPM Palong 21

2018 Malaysia

Kota Gelanggi 2018 FASSB PPPTR FASSB Kota Gelanggi 5/6

2018 Malaysia

Kerteh 2018 FASSB Kerteh FASSB Semaring 01

2018 Malaysia

Neram 2018 FGVPM Cherul 03 2018 Malaysia

Keratong 3 2018 FGVPM Keratong 11 2018 Malaysia

Tenggaroh 2018 FGVPM Tenggaroh 9 FGVPM Tenggaroh 11 FGVPM Tenggaroh 13

2018 Malaysia

Chiku 2018 FGVPM Ciku 4 FGVPM Ciku 8

2018 Malaysia

Keratong 2 2018 FGVPM Bera Selatan 3 2018 Malaysia

Jengka 21 2018 FASSB Jengka 24/25 2018 Malaysia

Adela 2018 FGVPM Kledang 02 2018 Malaysia

Bukit Kepayang 2018 FGVPM Terapai 3 2018 Malaysia

Belitong 2018 FASSB Ulu Belitong FGVPM Bukit Tongkat B

2018 Malaysia

Kulai 2018 FASSB Bukit Besar/Taib Andak

2018 Malaysia




Penggeli 2018 FGVPM Inas Selatan 2018 Malaysia

Chalok 2018 FGVPM Setiu 1 2018 Malaysia

Tementi 2018 FGVPM Bera Selatan 1 FGVPM Bera Selatan 4

2018 Malaysia

Kalabakan 2019 FGVPM Kalabakan Utara 1 FGVPM Kalabakan Tengah 1 FGVPM Kalabakan Selatan

2019 Malaysia

Kembara Sakti 2019 FGVPM Sahabat 30 FGVPM Sahabat 35 FGVPM Sahabat 40 FGVPM Sahabat 41 FGVPM Sahabat 42 FGVPM Sahabat 43

2019 Malaysia

Nilam Permata 2019 FGVPM Sahabat 50 FGVPM Sahabat 51 FGVPM Sahabat 52 FGVPM Sahabat 53 FGVPM Sahabat 54

2019 Malaysia

Hamparan Badai

2019 FGVPM Sahabat 23 FGVPM Sahabat 24 FGVPM Sahabat 26 FGVPM Sahabat 28 FGVPM Sahabat 31 FGVPM Sahabat 33 FGVPM Sahabat 34 FASSB Tambisan

2019 Malaysia

Mercu Puspita 2019 FGVPM Sahabat 7 FGVPM Sahabat 46 FGVPM Sahabat 48 FASSB Sahabat 6

2019 Malaysia

Lancang Kemudi

2019 FGVPM Sahabat 10 FGVPM Sahabat 36 FGVPM Sahabat 38 FGVPM Sahabat 39 FGVPM Sahabat 44 FGVPM Sahabat 45

2019 Malaysia

Pontian United Plantation

2019 Pontian Fico Pontian Subok Pontian Orico Pontian Pendirosa Pontian Kuril Pontian Hilco Rawajaya Sdn Bhd Blossom Plantation Sdn Bhd

2019 Malaysia

2Embara Budi 2019 FGVPM Sahabat 11 FGVPM Sahabat 12 FGVPM Sahabat 17 FGVPM Sahabat 56

2019 Malaysia




FGVPM Sahabat 20 FGVPM Sahabat 21 FGVPM Sahabat 22 FGVPM Sahabat 25

Baiduri Ayu 2019 FGVPM Sahabat 9 FGVPM Sahabat 16 FGVPM Sahabat 55

2019 Malaysia

Umas 2019 FGVPM Umas 5 FGVPM Umas 6

2019 Malaysia

Sampadi 2019 FGVPM Sampadi 1 FGVPM Sampadi 3 FGVPM Sampadi 4 FGVPM Sampadi 5 FGVPM Sampadi 6

2019 Malaysia

Bukit Mendi 2019 Felda Settlers 2019 Malaysia

Jengka 8 2019 Felda Settlers 2019 Malaysia



Padang Piol 2019 Felda Settlers 2019 Malaysia

Sg. Tengi 2019 Felda Settlers 2019 Malaysia

Mempaga 2019 Felda Settlers 2019 Malaysia

Pasoh 2020 Felda Settlers 2020 Malaysia

Kemahang 2020 Felda Settlers 2020 Malaysia

Tersang 2020 Felda Settlers 2020 Malaysia

Selancar 2A 2020 Felda Settlers 2020 Malaysia

Chini 2 2020 Felda Settlers 2020 Malaysia

Trolak 2020 Felda Settlers 2020 Malaysia

Semenchu 2020 Felda Settlers 2020 Malaysia

Jerangau Barat 2020 Felda Settlers 2020 Malaysia

Panching 2020 Felda Settlers 2020 Malaysia

Bukit Besar 2020 Felda Settlers 2020 Malaysia

Kahang 2020 Felda Settlers 2020 Malaysia

Waha 2020 Felda Settlers 2020 Malaysia

Air Tawar 2020 Felda Settlers 2020 Malaysia

Lok Heng 2020 Felda Settlers 2020 Malaysia

FGV Asian Plantation

Milling Plantation

2021 Inco Setia Sdn Bhd Kronos Plantation Sdn Bhd Fortune Plantation Sdn Bhd BJ Corporatio Sdn Bhd

2021 Malaysia

FGV Yapid MAS (Golden Land)

2021 15 Estate : Sri Kehuma Yapidmas AE Tanah Emas Corporation

2021 Malaysia




Bhd Ladang Kluang Yapidmas D Sri Mosta 1 Sri Mosta 2 Sri Mosta 3 Cepat Ringgit A Cepat Ringgit B Cepat Ringgit D Karamuak Sg Milian Sg Imbak Kuamat Sg Imbak Kuamat

PT Citra Niaga Perkasa

2021 PT Citra Niaga Perkasa Estate

2021 Indonesia

PT Temilia Agro Abadi

2021 PT Temila Agro Abadi Estate

2021 Indonesia

FGV Estates without FGV Mill

2021 FGVPM Paloh Estate FGVPM Tawai 1 FGVPM Lawin Tengah

2021 Indonesia

Based on time bound plan on 2017, total mill that FGVP(M) have 70 mills and no one has had certified. in 2017 FGVP(M) plans to conduct RSPO certification process (Initial Assessment) at 16 mill for 2017. The progress of certification process will be observed on next assessment.

1.10.2 Progress of Associated Smallholders and Outgrowers for Certifiable Standard

Aring A POM receive FFB from scheme smallholder and independent outgrower. The process of RSPO certification for scheme smallholder will be observed on next assessment.




2.0 ASSESSMENT PROCESS

2.1 Assessment Team

ST-2 1. Trismadi Nurbayuto (Lead Auditor). Bachelor of Economics from the Department of Agribusiness, Faculty of Economics and Management, Bogor Agricultural University. Specialists for Environmental Social Impact Assessment (SEIA) and High Conservation Value (HCV). Has attended several training such as: HCV, Auditor for Indonesian Sustainable Palm Oil (ISPO) training, Auditor/Lead auditor Management System Certification (ISO 9001-2008), RSPO Lead Auditor training, and RSPO Next training. Previously worked in the private oil palm plantations, became HCV assessor who registered at the Roundtable on Sustainable Palm Oil (RSPO) until 2014. He has been involved in the SEIA and Identification of HCV in Plantation company. Fluent in bahasa and malay. At the time of audit, has verify aspect of Best Management Practices aspect and long-term plan.

2. Ardiansyah (Auditor). Indonesian citizen, Bachelor of Forest Resources Conservation, Department of Forestry. Had work experience in Environmental NGO for 6 month (2007) and consultant for making EIA Document and Kajian Lingkungan Hidup Strategis for 3 years (2009 – 2012). Had attend training such as RSPO Lead Auditor course, Lead Auditor ISPO, OHSAS (SIO 18001 – 2007), land cover crop mapping and Management System Certification (ISO 9001-2008), Environmental Management System Certification (ISO 14001-2004), Social Auditing and Conflict Resolution. Had many times following audit activities related to sustainable palm oil certification system which is ISPO as an auditor since 2012 for legal, environmental aspect, conservation and social. Fluent in bahasa and malay. At the time of audit, has verify aspect of Legality, Social, Conservation, Supply Chain and Land Dispute.

3. Sandra Purba (Auditor). Indonesian citizen. Graduated from Forestry Faculty Bachelor Degree, majored in Forest Product Technology. Have experience working in industrial forest company, mining and oil palm plantations company for 6 (six) years as EHS and Sustainability Assistant. Has been certified as General OHS Expert, attend and passed the several trainings of management system (OHS, environment and quality management), has been attend the training of waste management, GHG verificator and validator training, and conflict resolution and mapping training. Have been successfully passed the Indonesian Sustainable Palm Oil (ISPO) Lead Auditor training course, RSPO lead auditor training course and auditor of RSPO Next. Involve in many audit activities of similar scheme (ISPO) since April 2013 covering the Legal Aspect, Environmental aspect, Social Aspect, Health and Safety Aspect, conservation and Worker Welfare. At the time of audit, has verify aspect of OHS and Worker Walfare.

4. Ebnu Holdoon S. (Auditor). Malaysian Citizen. Graduated with Bachelor of Civil Engineering from University Tenaga Nasional in Malaysia. He has been completed the ISO 9001 : 2008 QMS Lead assessor course for RABQSA – QM 785 (Exemplar Global) certified. He has an experience regarding the safety, health and environmental standard for construction works as an engineer for 1 year. He is fluent in local language. He has gone for various RSPO audits. Fluent in Bahasa, Malay and English. At the time of audit, has verify aspect of Environment, Transparency and Social.

2.2 Assessment Methodology, Assessment Process and Locations of Assessment

2.2.1 Figure of person days to implement assessment

ST-2 Number of auditors : 4 auditor Number of days for ST-2 at site: 5 days Number of working days for ST-2 at site : 20 Working days

2.2.2 Assessment Process

ST-2 The assessment was conducted by measuring the sufficiency of implementation with the consistency done by the Aring

A POM to the requirements of Malaysia National Interpretation - RSPO MY-NIWG of Principles and Criteria (P & C) for

Sustainable Palm Oil Production endorsed by RSPO Board of Governors 6 March 2015 and Supply Chain Certification

Standard For organizations seeking or holding certification Adopted by the RSPO Board of Governors on 21 November

2014 (Module E for CPO Mill)




The assessment was conducted in three methods: (1) document review, aiming to observe the sufficiency of types or

substances from required documents; (2) interview, aiming to obtain more detailed information and cross check the

information; and (3) field observation, aiming to observe directly the sufficiency of implementation on site.

Some opportunities for improvement of the results ST-2 delivered by the MUTU auditor to the management unit and

the results are the subject will be verified at the next assessment phase (ASA-1).

The assessment program please find Appendix 2

2.2.3 Location of Assessment

ST-2 The number of management units of this activity consists of four estates that supply material FFB to the Aring A POM. In conducting the assessment, auditor team using formula 0.8 √y to determine the sample of and consider the issue of problems arising from the stakeholders as fundamentaly and critical. Based on this formula, the team of auditors determine the location of sample is 1 unit of mill and 3 estates (Aring 4 Estate, Aring 8 Estate and Aring 11 Estate). Aring A Mill 1. Security Post. Observation and interview with Security Guard (Polis Bantuan) towards FFB reception, product

delivery emergency situation handling, OHS and manpower aspects. 2. Weigh Bridge. Observation and interview with Weigh Beridge Operatortowards FFB reception, product delivery,

training/socialization, weigh device callibraton and OHS. 3. Loading Ramp. Observation regarding on OHS aspect and interview with workers regarding on employment

aspects. 4. Sterilizer, boiler and engine room. Observation and interview regarding to the implementation of OHS and

employment aspects. 5. Workshop. Observation and interview with mechanic and welder related personnel understanding over the

applicable SOP, infrastructure in mill, the implementation of occupational health and safety, medical examination, trainings from company and worker welfare.

6. Hoisting Crane. Observation and interview with operator related personnel understanding over the applicable SOP, infrastructure in mill, the implementation of occupational health and safety, medical examination, trainings from company and worker welfare.

7. Hazardous waste warehouse. Field observations related to the fulfillment of the attributes health and safety, recording, and the implementation of compliance requirements hazardous waste temporary warehouse.

8. Solid Waste. Observation of the management of Solid waste consist of EFB, fiber and shell from the production process of mill.

9. Mill Drainage. Observations mill effluent lines, sanitation mill and flow of leaching mill. 10. Sedimentation Trap Pond. Observation on rainfall flows system on the mill. 11. WWTP. Field observations related to Ban to entry to WWTP, run off, testing of effluent. Officers equipped with PPE

and Recording of effluent debit effluent. 12. Chemical material warehouse. Field observations related to the fulfillment of health safety as well as interviews

with a warehouse clerk of safety health. 13. WTP. Observations and interviews related to water management, recording of water use, health checks, PPE and

waste management. 14. Hydrant. Simulate the facility of emergency. Aring 4 Estate 15. PM13G, Block 16. Observation the implementation of water management plan in riparian area of Sungai Aring. 16. PM12F, Block 6. Observation the boundary marking with other party i.e Yayasan Islam Kelantan. 17. PM11E, Block 1. Auditor was observe fertilizing activity, and also interview with 2 Bangladeshi workers and 2

Indian workers related to minimum wages, work agreement, work permit, worker welfare and PPE’s providing by company.

18. PM11E, Block 1. Auditor was observing harvesting activity, and also interview with 8 Indonesian workers related to minimum wages, work agreement, work permit, worker welfare, PPE’s providing by company.

19. PR15J, Block 23. Auditor was observing chemical circle weeding activity, and also interview 2 Indonesian workers




related to minimum wages, work agreement, work permit, worker welfare, PPE’s providing by company and first aid kit.

20. PM11E, Block 1. Auditor was observing EFB application with dosage 35 MT/Ha. 21. PM12F, Block 7. Auditor was observing Barn Owl Boxes as biological control of rat attacks. 22. PR17. Observation the Pre-Nursery and Main Nursery with clone of seed from Felda Agriculture Services Sdn

BHD (FASSB). 23. PR17K, Block 20. Auditor was observing replanting area, there are no evidence of open burning. There are also

sighted terracing area by heavy equipment. 24. Block G08 Division 3 (barn owl nest observation). To check nest condition. 25. Housing of Spraying System. Field observations related storage of PPE and handling hazardous materials and

toxic waste. 26. Hazardous waste temporary warehouse. Field observations related to the fulfillment of the attributes health and

safety, recording, and the implementation of compliance requirements hazardous waste temporary warehouse. 27. Fertilizer Store. Observations relating to the implementation of hazardous material storage, OHS, training and

labor management. 28. Pesticide Store. Field observations related to the fulfillment of health safety as well as interviews with a warehouse

clerk of safety health. 29. Mixing area. Observation of chemical management, the MSDS are avaliable on place, interview with the personnel

in charge regarding to the procedure implementation and OHS aspect 30. Fire Fighting Equipment Storage. Simulation the function of fire extinguishers and team readiness. 31. Workshop. Observations and interviews with workers related to the management and implementation of health

safety, and social worker. 32. Body shower of spraying team and mixing area. Observation the conditions body shower room and PPE

handling. 33. Block G13 Div. 1. Observation the implementation of water management in water resource. 34. Linesite / housing Area. Observation the availability of infrastructure such as housing, water and electricity

facilities, fire extinguisher, education facilities, religious facilities, health facilities, domestic wastemanagement, childcare and sports facilities.

35. WTP. Observations and interviews related to water management, recording of water use, health checks, PPE and waste management.

36. Composting pit / landfill area.Observsation on domestic waste management. 37. Fuel tank. Observsation on OHS and emergency preparedness facility. Aring 8 Estate 38. PM00B, Block 31. Observation the implementation of management in riparian area of Sungai Antia. 39. PR13J, Block 15. Observation the implementation of management in riparian area of Anak Sungai Aring. 40. PR12H, Block 32. Observation the boundary marking with rubber plantation of community. 41. PM13J, Block 15 (Spraying). Auditor was observe chemical circle weeding activity, and also interview 2

Indonesian workers and three Bangladeshi workers related to minimum wages, work agreement, work permit, worker welfare, PPE’s providing by company and first aid kit.

42. PM08E, Block 4 (harvesting). Auditor was observe harvesting activity, and also interview with 1 Indonesian, 1 Bangladeshi and 1 Indian workers related to procedure, minimum wages, work agreement, work permit, worker welfare, PPE’s providing by company and first aid kit.

43. PR14K, Block 17. Auditor was observe Barn Owl Boxes as biological control of rat attacks. 44. Fertilizer Store. Observations relating to the implementation of hazardous material storage, OHS, training and



in charge regarding to the procedure implementation and OHS aspect 47. Engine Room. Observation related to generator system, engine capacity and possible occurrence of spills to

environment and hazardous waste management.




48. Linesite / housing Area. Observation the availability of infrastructure such as housing, water and electricity facilities, fire extinguisher, education facilities, religious facilities, health facilities, domestic wastemanagement, childcare and sports facilities.

49. PM00B, Block 31. Auditor was observe domestic waste managemen in landfill area. 50. Fuel tank. Observsation on OHS and emergency preparedness facility. 51. Hazardous waste store. Field observations related to the fulfillment of the attributes health and safety, recording,

and the implementation of compliance requirements hazardous waste temporary warehouse. 52. PPE store for spraying team. Field observations related to the fulfillment of health safety as well as interviews

with a warehouse clerk of safety health. Aring 11 Estate 53. Block 2. Observation the boundary marking with resident of indigeneous people. 54. Block 2. Observation the implementation of management in riparian area of Sungai Fayung. 55. PR16F, Block 10 (Spraying). Auditor was observe chemical circle weeding activity, and also interview 2

Indonesian workers and three Bangladeshi workers related to minimum wages, work agreement, work permit, worker welfare, PPE’s providing by company and first aid kit.

56. PM00C, Block 1 (harvesting). Auditor was observe harvesting activity, and also interview with 6 Indonesian and 2 Bangladeshi workers related to procedure, minimum wages, work agreement, work permit, worker welfare, PPE’s providing by company and first aid kit.

57. PR17J, Block 6. Auditor was observed replanting area, there are no evidence of open burning. There are also sighted terracing area by heavy equipment.

58. PM00C, Block 1. Auditor was observe Barn Owl Boxes as biological control of rat attacks. 59. Fertilizer Store. Observations relating to the implementation of hazardous material storage, OHS, training and



in charge regarding to the procedure implementation and OHS aspect 62. Engine Room. Observation related to generator system, engine capacity and possible occurrence of spills to

environment and hazardous waste management. 63. Block H8 Div. 4. Observation the implementation of water management in water resource 64. Linesite / housing Area. Observation the availability of infrastructure such as housing, water and electricity

facilities, fire extinguisher, education facilities, religious facilities, health facilities, domestic wastemanagement, childcare and sports facilities.

65. FN04B. Auditor was observe domestic waste managemen in landfill area and NPP Plan area. 66. Fuel tank. Observsation on OHS and emergency preparedness facility. Stakeholder Consultation 67. Surrounding communities. Interviews related to the issue of environmental pollution, land conflict issue, the

company's contribution to society and the impact of corporate activities.

2.3 Stakeholder Consultation and Stakeholders Contacted

2.3.1 Summary of stakeholder consultation process.

ST-2 Consultation of stakeholders for Aring A POM, FGVP(M) held by: 1. Public announcement at web www.mutucertification.com and www.rspo.org on 27 July 2017. 2. Public consultation by interview with locals of the nearby villages (Smallholder of Felda Aring 1 and local contractor)

on 11 September 2017. 3. Consultation meeting and interview with Internal Stakeholder (labour union and gender committee) on 11

September 2017. 4. Consultation with NGO (Malaysian Nature Society (MNS) Kuala Lumpur, UNION – AMESU, Centre for

Environment, Technology and Development Malaysia – CETDEM, National Council of Welfare & Social

http://www.mutucertification.com/

http://www.rspo.org/




Development Malaysia – NCWSDM) via email on 6 September 2017. Numbers of input from stakeholders were clarified by Aring A POM, FGVP(M).

2.3.2 Stakeholder contacted

Please find appendix 1

2.4 Determining Next Assessment

The next visit (ASA-1) will be determined at least 12 month after ARING A POM have obtained RSPO Certificate




3.0 ASSESSMENT FINDINGS

3.1 Summary of Assessment Report of the RSPO Certification

MUTUAGUNG LESTARI has conducted an assessment of Aring A POM – FGVP(M) operation consisting of one (1) mill and nine (9) oil palm estates.

During the assessment, there are three (3) Nonconformities assigned against Major Compliance Indicators; two (2)

Nonconformities assigned Minor Compliance Indicators and seven (7) opportunites for improvement were identified.

Further explanation of the non-conformances raised and corrective actions taken by the company are provided in section

3.5. The company has already prepared and implemented the corrective actions that had been reviewed and accepted by

Auditors in form of documentation evidences e.g. (document record/photographic) and field visit. Those corrective actions

taken that consist of three (3) Major Nonconformities had been closed out shall be verified during next assessment.

MUTUAGUNG LESTARI found that Aring A Mill, FGVP(M), complied with the requirements of Malaysian National

Interpretation (MYNI), March 2015 and RSPO Supply Chain Certification Standard November 2014 for CPO Mill.

Therefore MUTUAGUNG LESTARI Recommends RSPO Certification of compliance is Issued

Ref Std. VERIFICATION RESULT of MUTU-Certification

PRINCIPLE #1 COMMITMENT TO TRANSPARENCY

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

1.1.1 During the audit at Aring A Palm Oil Mill, the company had updated the latest stakeholder list dated 8th August 2017 and the stakeholder meeting has been done at Dewan Felda Chiku attended by management of Felda Global Ventures Plantations, workers representative , staff and related stakeholders including villagers of Felda Aring 1, Felda Chiku 5, teachers,groceries store and auxiliary police. The company had also verified the document and the stakeholder list , person in charge is Mr Atfan Nawi (Mill Manager ), Mr Nor Hairizan (Estate Aring 11) Mr Bakri (Estate Aring 4). For each from Aring 2,3,4,8,11,15 and 10, each estate will send their own list of internal and external stakeholder. Sighted also the list of stakeholder been updated by the Aring Complexes dated 7th September 2017. The stakeholders are aware regarding type information during the stakeholder meeting and has been briefed by FGVP(M) management and regarding the information that can be obytained from FGVP(M). Komunikasi, Penglibatan dan Rundingan – FGV/ML-1A/L2- Prl2,Sighted prosedur for internal and external communication. Time frame for External Communication – 2 weeks from date of receiving the information. One week for investigation. External communication has been made a chart through the safety policy, social aspect, and external complain forward to estate manager then estate will comment and investigate, grievance procedure and all external communication will be recorded. The information and procedure are made aware by the management through muster morning meeting and policy related to it has been displayed at muster morning meeting and workshop. FGVP(M) also had established a procedure of SOP related to grievance and response to stakeholder referring to FGVP(M) prosedur menangani Aduan dan Rungutan (effective date 1st June 2016) FGV/ML-1A/L2-Pr13 (pindaan 0). Arising matter will be discussed through following steps :

SOP of constructive response : in one week discussing the matter with the executive

After discussion management unit has to settled the problem as soon as possible

Internal : 7 working days started from date of reporting (second stage)




Head of department should settled the problem in 14 working days.

External communication response : 2 weeks from the date of reporting

1 week to settle the investigation (if any)

Media and external stakeholder announce through allowed form Human resource Unit. 1.1.2 There is a clear timeline available from the SOP and person in charge of handling the request which are 1) Record of response : Broken housing facilities form – log report of house repaired dated : 30/7/ 2017 : House no . I

4, sighted the signature of applicant/ complainer. 2) Clear time frame and response – sighted letter from Sekolah Menengah Kebangsaan Bandar Chiku – received letter

of ‘memohon sumbangan bagi melaksanakan program kecemerlangan ‘iChun’ dated 16 May 2016 –received and response by the Manager (Bakarudin Bin Ismail)

3) Estate aring 8 : request to Felda Aring 8 to use van and driver dated : 17/7/17 – form tabika kemas Al Asma – approved by Mr Mohamad Khairani (manager of Aring 8) dated 17/7/17

4) Sighted a documented evidence of complain regarding one of the workers,Mr Amin dated 28/8/2017 – sickness and has been reported to the office , bring immediately to the clinic for treatment.

5) Record dated 10/4/2017 – workers Name Mr. Hamdi in Asrama – toilet clogged, damage of keylock and lamp not function in– response, repair and change the broken facilities within one week.

Status: Comply

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

1.2.1 The management has made publicly available the related document listed by the standard. It include the Land title of the management unit (mill and supply bases), license of SPAN, generator set, OSH plan of the mill and estate, risk assessment, mitigation plan (HIRARC document), Environmental Management Plan (EMP) and Environmental Impact Assessment (EIA) aspect and impact of the plantations activity towards the environment, waste management plan of scheduled waste and domestic waste were made available at the estate and mill. Felda Global Ventures Plantations (FGVP(M) had also documented the Social Impact Assessment (SIA) at estate involving the aborigine and settlers (aring1) and mill accordingly, together with HCV document for Aring 10 and Aring 15 (prepared by Aksenta) for the wildlife and water catchment area, Pollution Prevention Plan (PPR), communication procedure to internal and external parties, and also include all the company policy ( e.g : human right policy, recycling policy, no open burning policy, ethical code and integrity policy, sexual harassment and right of reproduction policy, and protection environment that made available at all estate and management unit of UP as per field visit and document verification.

Status: Comply

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

1.3.1 The company FGVP(M) had set up the policy of code ethical conduct documented and communicated to all level of workforce and third party contractor. The company has input all the elements of prohibitions of all forms of corruption, bribery and fraudulent of funds into the code of conduct. Its include the elements such as : Code ethical conduct made available at the estate and Mill referring to ‘Polisi Kod Etika Kerja dan Integriti’ approved by Mr Emir Mavani Abdullah (Group Chief Executive) dated 1/6/2014:

Reject practices of corruption, and breaking trust

Rid of any conflict of interest




Implement business management with sincere , honest and fair

protect the confidentiality of information

Increase the level of professionalism The code of ethical conduct has been made in Bahasa and English language and been communicated to the workers in Bahasa due to workers understood the language. 3 workers had been interviewed during the field visit, foreman, assistant foreman and water treatment plant foreman. Two workers has been interview (Mr Rasip from Lombok ) and Mijani Rahman (Bangladeshi ) and has been asked regarding policy. The workers are aware regarding the policy and announcement by the management to the workers during morning roll call and muster morning. Sighted also the latest policy has been pasted on the muster ground and management office.

Status: Comply

PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

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

2.1.1 The management unit has shown the compliance of local, national, international laws and regulation, such as:

MPOB license

DOE license

Has electrical licensce for generator

Well water license

Approval for furnance

Machines inspection on 2017 by JKKP for 31 machines include for 2 boiler (Takuman N-600), but the result not publish yet. The management unit has also shown record of payment issued by the Kerajaan Malaysia (Resit No. 04108117000259) dated 21 August 2017

Work permit for foreign workers such as Indonesian Worker with Passport: B3671599 (issued 4 April 2016, valid until 4 April 2021); permit issued date : 27 Sept 2016, valid until 7 Sept 2017

There is 5 boilermen, 3 chargemen and 6 steam engineers in Aring A POM that has been in accordance with Factories and Machinery (Persons-incharge) Regulations, 1970.

The EQA (Precribed Premises) (Crude Palm Oil) Regulation 1977 that kept in mill office.

The compliance related to Factories and machineries Act has been made available at the mill and mention related to Noise monitoring will be from 30 – 130 db. Based on the result made by Nabbir Laboratry at Mill Aring A (registered contractor by DOE) the mill has not passed the threshold limit as per license requirement.

But the certification unit cannot showed the evidence of SPAN License in FGVP(M) ARING-8 estate and this is raised as NC No. 2017.01 with major category. Furthermore, Aring A Mill has conduct inspection for factories and machinery on May 2017 but the result is not publish yet until the main assessment. The result will observed on next assessment (OFI). During this assessment, sighted both mill and estate established “Overtime Request Form” and the implementation found satisfactory and no findings was noted while verifying on payslip and worksheet record. 2.1.2 & 2.1.3 There is a “Legal & Requirements Register” established by the CDD (Certification and Due Diligent) and sent to each estate and mill. CDD can show the evidence of email that sent to each management unit on 16 January 2017. The evaluation of compliance is conduct once a year by manager and asst manager of each management unit in accordance with procedure “Pematuhan Undang-Undang dan Keperluan Lainnya”. Based on the evaluation on June 2017, among the legal & other requirements evaluated were Factories & Machinery Act 1967, Classification, labelling & Safety data Sheet of Hazardous Chemicals Reg 2013, Pesticide – labelling Reg. 1984, OSH 1994 and EQA 1974. 2.1.4




FGVP(M) already has procedures for changes / update of legislation in “Prosedur Undang-Undang dan Keperluan Lainnya”. The source of regulation update is based on government act book, relevant industry associations, relevant government departments (such as Department of Environmental, Department of Safety and Health, Department of Labor), National Occupational Safety and Health Institute and MPOB. Each management has had PIC to update the relevant regulation.

2.1.1 2.1.1

Status: Nonconformity No. 2017.01 with major category Status: OFI

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

2.2.1 Management unit of Aring A POM and supply base is owned by Felda Palm Industries Sdn Bhd and is located at Mukim Relai, Jajahan Gua Musang, Kelantan, Malaysia. This mill was commissioned in 1990 with a processing capacity of 54 MT/hr. The management unit have a clear legal lease from the state government in form of land use right (Geran Hak Milik Sementara Tanah) for an area of 20,528.96 Ha. Based on document review and field visit known that certification unit has manage a area of 20,528.96 Ha consist of 15,699.16 Ha planted area; 370.79 Ha Mill & Emplasement, 236.13 Ha Swamp, 397.43 Ha Infrastructure, 60.29 Ha Nursery, 15.52 Ha Air strip, 3,063.81 Ha other area, 616.80 Ha NPP Plan (it was exclude from certification scope) and 69.00 Ha HCV area. 2.2.2 During field visit found the no original boundary stone visually, but management unit maintaining trenches and fence as part of boundary marker. The estate also implementing pole system [red & white] along the boundary parameters (see picture). The monitoring of boundary marker is conducted once a year.

2.2.3; 2.2.4; 2.2.5 & 2.2.6 Consultation results with stakeholders (smallholder and contractor) is known that there was no dispute / conflict of land between management unit and communities. Field visit and document review also shows that there was no dispute / land conflict in operation area of Aring A POM and supply base. FGVP(M) has had procedure for conflict solution which stated that the resolution involve the stakeholder.

Status: Comply

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

2.3.1; 2.3.2; 2.3.3 & 2.3.4




All land in Aring Complex are leased from state government. No record of other user customer right have arised. Records are available to show that the land leases comply with legal requirements. Records are available to show that the land leases comply with legal requirements. Form A: Register of Holdings with serial no 140201 & 140001 provided. There was sigthed also the Approval letter of “Permohonan Milik Tanah Kerajaan Bagi Tapak Perusahaan di Aring A, Mukim Relai, Daerah Chiku, Jajahan Gua Musang, Kelantan” from Pejabat Tanah dan Jajahan Gua Musang (Ref: MTGM 113/05(13) dated on 15 July 2010) was documented.

Status: Comply

PRINCIPLE #3 Commitment to long-term economic and financial viability

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

3.1.1. There was available the management plan to achieve long term economic financial viability. It was sighted that the management unit has provided the 3 years budgeting program for each estate and management unit. There was person in charge available for the estate and mills all the operation budget for the next 3 years was made available. However this long term business plan has been reviewed every year. Consideration to evaluate the financial indicator (revenue/cost ratio) on long term business plan. (OFI) 3.1.2. The management unit has replanting program on each estates, FGVP(M) Aring 4 Estate has replanting program year of 2017 with area 230.22 Ha in PM90C, Block 10 until Block12. Therefore FGVP(M) Aring 8 Estate has replanting program year of 2016 till 2018 with area: 438.86 Ha; 423.37 Ha and 445.49 Ha. While FGVP(M) Aring 11 Estate has replanting program from 2017 – 2022 with area 429.68 Ha year of 2017.

3.1.1 Status: Comply

PRINCIPLE #4 Use of appropriate best practices by growers and millers

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

4.1.1. FPISB has Procedure and Manual for operating the mill, for example Manual Operasi Kilang Sawit for each station in the process of palm oil production from weighbridge to storage, Manual for Laboratory (sample tacking, laboratory use tool, chemical material provision, calibration, determination, water analysis) and Occupational Safety and Health Procedure (general safety, loading ramp, press operation, etc.). The FGVP(M) procedure called Manual Ladang Sawit Lestari establish on 1 June 2012 start from Nursery, replanting, immature plant maintenance, mature plant maintenance and harvesting, upkeep (fertilizing and quality monitoring). Therefore all safety working practices on Mill and estates was available on ddocument of Prosedur Kerja Selamat (FPI-PK-001) dated 14/07/2010. This procedure has covering all safe working practice in the mill and also procedure of permit to work system and use of PPE’s. There are also SOP for measuring and monitoring mill effluent were include on Manual Operasi (Makmal) January 2001. SOP is available on audit site and written in a language that is easily understandable for workers. Based on interviews with workers in the estate and mill, it is known that the socialization of SOP has been carried out through the safety briefing or roll call which are done before begin the operational activities. The results of field visits at the Loading Ramp of Aring A POM showed that workers had found out about the criteria of ripe fruit, unripe fruit, empty fruit bunch, etc. Also according to interview with several workers in estates, they can explain about obligation and work instructions. 4.1.2 & 4.1.3 FGVP(M) has mechanism to ensure that all procedure in Mill and Estates has been implemented. There are Plantation Advisor (Task Force) and Agronomist visit every year. While Mill Advisor was conducted on the Mill. The latest Plantation Advisor visit dated 11 July 2017 in Aring 4 Estate, 4 April 2017 in Aring 8 Estate, and 3 August in Aring 11 Estate. While




the latest Mill Advisor visit ont 25-26 July 2017. All comment by Plantation Advisor and Mill Advisor has been follow up by each unit. For example: The broken one piece of overflow T-Pipe and the heavily clogged outlet drain for anaerobic pond no 4 should be promptly attended. This issues has been verified by auditor team and it has been complied by management unit. 4.1.4 The management unit has SOP FFB purchasing from internal and external sources/suppliers year of 2014. The Aring A POM have a record of origin sourced Fresh Fruit Bunches (FFB). These supplier consist of:

Internal FFB from FGVP(M) Aring 2, 3, 4, 5, 6, 8, 10, 11 and 15 Estates.

Felda Aring 1 Estate (Associated smallholders).

Independent FFB suppliers: there are 28 suppliers on August 2017.

Status: Comply

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

4.2.1&4.2.2. FGVP(M) has several Procedure No. LSL (D.2)-Sec. 5 (1.0) Management of fertilizer supply; Sec.5 (2.0) Quality Control of Fertilizer; Sec.5 (6.0) Fertilizer through the spreader; Sec.5 (7.0) Fertilizer through the subsoil; and Sec.5 (8.0) Monitoring the quality of Fertilization. Each of management unit has fertilizer using records, for example: Aring 4 Estate has apply 1,086.93 MT; Aring 8: 1,346.00 MT; and Aring 11: 519.25 MT in accordance to fertilizer recommendation by agronomist. Therefore based on field observation in Aring 4 Estate, PM11E, Block 1 that known all of workers can explain about job description and fertilizer dosage per plants. 4.2.3. The periodically tissue and soil sampling has conducted by Felda Agriculture Service Sdn. Bhd (FASSB). Last soil and leaf sampling conducted in Aring Complex at 17 – 20 January 2017 by the parameters of N, Ca, Mg, K, P and B. For example soil sampling analysis result in Aring 4 Estate, PR15J, Block 25 with PH: 4.00; N: 0.14%; P: 5.00 Ppm; K: 0.20%; Ca: 2.04%; Org.C: 1.91%; Cec: 8.44%. While leaf sampling analysis in Aring 8 Estate, PM003, Block 28 with N: 2.74%; P: 0.163%; K: 0.771%; CA: 0.732%; and Mg: 0.191%. 4.2.4. The Company has a strategy of recycling nutrients, such as the use of the fronds and EFB Mulching. The Aring 5 Estate have monitored the implementation of the EFB application which record in Rekod Tandan Kosong document describing the daily basis application, date of application, vehicle number, amount of EFB, the application of empty fruit bunches (EFB) was done with a standard 35 ton/ha. The example on August 2017 has applied to 406.14 MT in Aring 2 Estate and 380.67 MT in Aring 6 Estate. According to field observation to replanting area in PR17K, Block 20, Aring 4; and PR17K, Block 6, Aring 11. There are palm residues from chipping activity, there also zero burning on replanting activity. Therefore based on field observation in PM11E, Block 1, Aring 4 there are EFB application with dosage 35 MT/Ha. However the management unit be consider to increase the EFB application as nutrient recycling strategy. (OFI).

Picture 1. The EFB mulching in Aring 4, PM11E, Block 1




4.2.4 Status: OFI

4.3 Practices minimize and control erosion and degradation of soils.

4.3.1 & 4.3.4 The management unit has showed maps of slope and soil type (scale 1:50,000) in the operational area. Slope area was control with terracing contours, hooves (individual terrace) and planting the LCC plants. The type of soil’s in Aring 4 Estate is Musang, Musang shallow, Musang lateritic , Durian, Durian Lateritic, Kedah Malacca, tok Yong, Colluvium, Local Collovium. Aring 8 Estate is Beserah, Colluvium, Jempol, Katong, Local Alluvium, Rengam, Segamat and Tok Yong. While land type in Aring 11 is Musang series, Jempol, Katong, Beserah, Local Alluvium, and Bungor. 4.3.2. The management unit has implemented soil conservation practices to minimize soil erosion and soil degradation as shown by the following record: soil and the steep river bank protection policy, planting of cover crops (Mucuna); frond shape stacking practice, silt pit, EFB application in the replanting area. The management units also have blue print for replanting, for example: Blue Print Replanting in PM99E, Block 24-26 Aring 11 Estate; the strategies need to be done as: construction of a 14-foot wide terrace in most hilly areas an estimated 182,328 meters of core will be built. 4.3.3. The management units has road has standard operating procedures in the document of Field Manual on Sustainable Oil Palm Plantation chapter 10 concerning “Agricultural Road Establishment”. Periodic road maintenance are planned and incorporated in the budgeting plan of each estate, for example: patching, clean and preserve the trenches, gradding, repair collapsed roads, plaster, installation of box culvert, and other forth. For monitoring of the implementation, there is form for roadwork monitoring in each estate. During the field observation the collection and transport roads were well maintained. 4.3.4; 4.3.5 & 4.3.6 According to soil maps verification and field observation to several location in Aring 4, Aring 8 and Aring 11. There are no peat area in Aring Complex.

Status: Comply

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

4.4.1 The company had setup the water management plan at the estate and mill including the flowchart of water treatment plant. Sighted on the estate planning of water management plan for year 2017 for estate Aring 4 dated 4/1/2017, impact towards the water catchment area, action plan and mitigation plan and also the personnel incharge of the water management plan. The water test result from Kementerian Kesihatan Malaysia regarding water quality also has been taken which comprise :

Total coliform (115 MPN inlet ) MPN Outlet )

E coli (33.6MPN/100ml inlet - ) MPN Outlet

Turbidity (Kekeruhan)

Warna (TCU)

pH

Clorin Balance

Aluminium content

There is also documented procedure of water management during flash flood, the sources of problem, (clogged drainage, sewage treatment clogged, and during raining season). The Action plan of each problem has been taken into account such as clean the drainage, clean the culvert and build up the drainage. The responsible person of the water management plan will be the estate manager assisted by their assistant. The water treatment plant for Aring 8 test result as per details :

Total Coliform : 162 MPN / O MPN

E coli : 27.4 MPN / 0 MPN




Turbidity NTU : 36.3 MPN / 3.82 MPN

Warna : 0/0

PH : 7.19 / 7.61

Clorine Content : - / 258

Aluminium : 0.07 / 0.15 Sighted the report prepred by Mr Arif Ismail (Penolong Pegawai Kesihatan Persekitaran U 29) Unit Kawalan Mutu Air minum (KMAM) Pejabat Kesihatan Daerah Gua Musang , Kelantan. 4.4.2 During the audit the FGVP(M) Aring 4, 8, and 11, sighted the document of Buffer Zone SOP which comprise :

No planting in the area more than 25 degree slope for replanting and new planting

to plant the legume cover crops

To increase the planting of plant cover crop

to establish area of buffer zone as per Department of irrigation standard

1-5 m = 5m, 5-10 meter (10m) , 10-20 meter (20m), 20-40 meter (40m) >50m = 50meter Sighted circular of ‘Larangan Menjalankan Aktiviti meracun dan Membaja di sepanjang kawasan Buffer zone’ dated 16th February 2017 from the management unit of Aring 11 to all the staff and workers. During the field visit, the company had also painted the trees with white and blue color on the palm trees as per indication of no spraying, and fertilizing application at the area. There is also buffer zone signboard near the water courses and river. Sighted a map of Estate Felda Aring 11 and including all the river and wet land to identify the water courses and river at the estate :

Sg Pikas

Sg Rawa

Sg Akar

Sg Balo

Sg Hawa

Sg Payong

Sg Temboh

Sg Balai Besar 4.4.3 The mill had send a sample result on 17/7 /207 on the pond (Algae PKT 01) send to Felda Palm Industries Sdn Bhd (subsisdiary company of FGV Holdings Berhad – Makmal Analisa Bukit Goh , Kuantan and final discharge result of mill effluent dated 07/06/17:

PH – 9.22

BOD – 28

COD – 262

Total Solids – 1389

Suspended solids – 114

Oil and grease -114

Ammoniacal Nitrogen – 20

Total Nitrogen – 50 License for effluent discharge – to river channel : sighted license number [004596] from period of 1 July 2017 until 30 June 2018. The effluent limit as per condition from Department of Environmental as per :

Limit BOD 3 days 30 Degree = less than 100 mg/l

TSS , 400 mg/l

Oil and grease not more than 50 mg/l

Intensity Ammoniacal nitrogen , 150 mg/l




Intensity of Nitrogen content , 200 mg/l

PH , 5.0 and not more than 9.0

Temperature less than 45 degree. 4.4.4 The company also had developed a procedure of mill water usage produced as per documented value :

Record of water usage per month available : from month of January 2017 – June 2017

BTS process : 15910, 11520, 13570, 17620, 17800, and 19310

Water usage in m3 : 28002, 14 976, 17641, 22906, 23140, 25103,

Water usage per ton FFB : 1.76, 1.30, 1.30, 1.30, 1.30, 1.30, 1.30

The company had monitored the water usage per Ton FFB in the estate and had documented it in monthly basis.

Status: Comply

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

4.5.1. FGVP(M) has IPM plan as rat attacks monitoring, bromadiolon application monitoring, Barn Owl Boxes Monitoring, Beneficial Plants monitoring, leaf eating caterpillar monitoring, ganoderma monitoring and others. Records of monitoring was available on each estates, for example: percentage of rat attacks on August 2017 are Aring 4 Estate: 8%, Aring 8: 6.5% and Aring 11 Estate: 6.85 %. While barn owl boxes monitoring was conducted every month, the occupation of Tyto alba on each estates: Aring 4: 80%, Aring 8: 71%; and Aring 11: 36%. Based on interview with assistant manager, there are no leaf eating caterpillar attack during last year in Aring Complex. Therefore based on field observation known that barn owl boxes was available on each estate, for example: PM12F, Block 7 (Aring 4), PR14K, Block 17 (Aring 8), and PM00C, Block 1 (Aring 11). There also was observe several beneficial plant as: Turnera subulata and Antigonon leptosus along main roads and collection roads. 4.5.2. The management unit has IPM training plan and records. The IPM training was conducted on 11-12 January 2017 at Aring 4 Estate, Aring 8 Estate on 13 April 2017 and Aring 11 Estate on 14 April 2017. Minute of meeting and training module has verified by auditor team. According to interview with harvesters in each estate, during harvesting activity their also have responsible to monitor rat attacks and nettle caterpillar attacks. The information will be forwarded to the foreman or assistant manager.

Status: Comply

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

4.6.1. The chemical weeds control information such as dosage use, type of active ingredient use according to type of weeds contain in procedure of Manual Lestari 1A number ML-1A/L3-GP1 (0) about justification of chemical use. The company has shown evidence that the used pesticides have received permission from the government. Selection of pesticides is done by considering the type of weed found in the operational area. According to management explain, at this time is no use Paraquat to weeds control; and also based on field visit on chemical storage there is no longer the stock of Paraquat in Aring 4 Estate , Aring 8 Estate and Aring 11 Estate. 4.6.2. The management units has reocords of pesticide use in accordance to Malaysia Palm Oil Board approval. Pesticides has been documented by each estate that explains the name of the active ingredient, LD50, % active ingredients, the number of applications, the total active ingredients pesticides used / Hectare, application hectare and the amounts of pesticide / hectare. There are records examples of pesticide use, that is in August 2017 at the Aring 8 Estate are using Glyphosate with the number of application is 1,168 liter, the total active ingredient is 0.0019 liter/ha, Metsulfuron methyl with number




of application is 2,831.67 Kg, the total active ingredient is 0.21613Kg/ha and used triclopyr butoxy ethyl ester 0.0022 liter/ha and Glufosinate ammonium 0.00734 Liter/ha. 4.6.3. FGVP(M) has IPM plan as rat attacks monitoring, bromadiolon application monitoring, Barn Owl Boxes Moniotirng, Beneficial Plants monitoring, nettle caterpillar monitoring, ganoderma monitoring and others. Records of monitoring was available on each estates, for example: percentage of rat attacks on August 2017 are Aring 4 Estate: 8%, Aring 8: 6.5% and Aring 11 Estate: 6.85 %. While barn owl boxes monitoring was conducted every month, the occupation of Tyto alba on each estates: Aring 4: 80%, Aring 8: 71%; and Aring 11: 36%. The management unit also has Bormodiolon usage record in Aring 4 Estate PR15H, first round on March: 46 bag, second round on May: 68 bag, third round on August: 45 bag. The management unit also has program to reduction of pesticide use for three years later. The reduction program are 5 % per year. 4.6.4. All the pesticides use by the estates has been registered in Senarai Racun Berdaftar MPOA October 2007. Approved List of Pesticides Registered for Oil Palm (wef October 2007) “this is to inform that the latest list of pesticides for use in oil plam (food act 1983) is enclosed herewith, Members are advised to use ONLY pesticides which are approved by the Pesticedes Board as well as the Food Act”. There is also shown the Policy of Paraquat use on 1 June 2014 by FELDA and FGV document no.97/143-H which informed the reducing and stopped the application based on consideration of: The Paraquat only uses for the young palm (0-3 year) and prohibited for the old palm, the alternative of the replacing the paraquat pesticides have to implement. And then Circular Memorandum No. (27) 010810/Hq/JAB.OP.17/PLANTATIONS/AM, dated 8 May 2017 regarding Prohibition of Paraquat Diclorida usage. Based on document verification and field observation to Chemical Storage known there are no Paraquat stocks and usage from January – August 2017. 4.6.5; 4.6.6; 4.6.7; 4.6.9 The results of field visits and interviews with workers it is known that the employees have been given training in safe work practices. This was evidenced by the employee can demonstrate the correct way to work in accordance with the procedures, for example the sprayer using personal protective equipment in accordance with specified hazard identification. In addition, employees are also informed about the steps of secure work in each muster mornig before work. The recording of spray training and pesticide handling by producer has done in 12 December 2016 on Aring 4 Estate, Aring 8 Estate on 15 December 2016 and Aring 11 Estate on 14 July 2017. According to interview with spraying team in Aring 4, PR15J, Block 23; Aring 8, PM13J, Block 15 and Aring 11 PR16F, Block 10. They were understood about hazards and risk related chemical used. There also can demonstrate the pesticide handling from mixing area till spraying activity. The company was provided adequate PPE’s as helmet, safety glasses, respirator mask, rubber gloves and apron. The hazardous chemical handling procedure observed in Safety, Health and Environmental Manual section 19. According to field observations to chemical storage in Aring 4, Aring 8 Estate and Aring 11 Estate. Each of management unit has implement of SOP according to national regulations; such as: there are symbol and label on each chemical types. Emergencies eye wash on good conditions and also there are MSDS on each of chemical types. According to interview with spraying mandore in Aring 4, PR15J, Block 23; Aring 8, PM13J, Block 15 and Aring 11 PR16F, Block 10. The pesticide mixing was conducted in mixing area near of chemical store. It was observed too by other auditor, the each of estates management was provided adequate mixing areas. Therefore based on field observation to near of chemical store in Aring 4, Aring 8 and Aring 11, there were available facilities for cleaning up after work. And also there were available storage spaces for keeping PPE including overalls after use. Meanwhile there are Joint Consultative Committee between FGVP(M) and Felda. The Pesticide handling program for associated smallholders was handled by this committee. Based on field observation to near of chemical store in Aring 4, Aring 8 and Aring 11, there were available facilities for cleaning up after work. And also there were available storage spaces for keeping PPE including overalls after use. There are also balance of chemical kept under lock and key. While the management unit are not using highly toxic pesticides.

4.6.8 According to interview with assistant manager on Aring 4, 8 and 11. And also interview with stakeholders. There is no aerial spraying at FGVP(M) Aring complex




4.6.10 The company had developed SOP for disposal waste material and the training has been done. The SOP developed referred to the Document number ML- 1A / L2- PR4 effective on 1st June 2016 that refer to recycling method and waste disposal material including responsibility definition of waste disposal, procedure of mill and management of solid waste (domestic waste) as per Act 672 Solid Waste Management. Sighted the document of waste domestic management and waste material including the scope of work, responsibility of manager and assistant manager, certification and due diligence support, and procedure of waste management. Sighted also a procedure of ‘domestic waste ’ – flow chart : 1. The mill and estate insist to open an new landfill at mill and estate area) 2. The manager identified the area that suit to operate in the mill and estate 3. The project manager will appoint a contractor to carry out the rubbish from housing area 4. The project manager must ensure the landfill should be manage appropriately) 5. The waste that has been disposed of at the landfill area must be excavated and backfilled as per required Sighted the training period for the staff and contractor as per details :

Chemical handling : 16 September 2017

Surat Perintah Kerja stor management : 14/7/17

Surat Perintah Kerja for Spraying: 4 Mei 2017 During the observation at Aring 8 and 11, the management unit had not following their procedure of proper waste disposal including waste segregation and the policy of recycling material. The waste has not been segregated an the contaminated container (scheduled waste) has been mixed up with the domestic waste. This is note as Nonconformity No. 2017.02 with minor category. 4.6.11 On the document of “senarai nama medical surveillance 2017” has listed the pesticide operator in all estate sampling, namely Aring 4 estate 19 operators, Aring 8 30 operators (including foreman) and in Aring 11 as much as 24 operators. Medical surveillance conducted annuallly, for e.g. surveillance for 2017 preformed by clinic of Syed Badarudin Sdn Bhd on 11 March 2017 in Aring 4 and Occumend Consultancy and Services Sdn Bhd in Aring 8 on 19/11/2016. Based on medical check report the result showed there is no indication of chemical exposure in Aring 4 and Aring 8. Verified during the field visit, there were no complaints or indication of exposure to either intoxication or skin itches/irritation. Medical surveillance of pesticide operators in Aring 11 planned to be performed in 10 Oct 2017 by occumed consultancy. Based on the CHRA recommedation, no need to check cholinesterase due to the estates not use acephate pesticide. 4.6.12 Provided letter from EM concerning the prohibition of agrochemical management by female workers who are pregnant and lactating to all female employees in Aring 4, Aring 8 and Aring 11, for e.g. letter to female workers of Aring 4 on 24 July 2017, to as many as 11 female employees. Based on list and field observation known that there is no female workers who handling pesticides.

4.6.10 Status: Nonconformity No 2017.2 with minor category

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

4.7.1 Commitment and policy regarding to OHS are set out in the document of “Dasar Kualiti, Keselamatan Kesihatan Pekerjaan dan Alam Sekitar”, date of revision 1 February 2017, signed by Chief Executive Officer of Felda Palm Industries Sdn Bhd. In addition sighted HEALTH, SAFETY and ENVIRONMENT POLICY approved on 1 April 2016 by Group President CEO, both document are written in Bahasa. OHS plans and programs have been developed and its implementation has been regularly monitored by SHO HQ. Both OHS policy and plans have been coomunicated to employees through roll-call and displayed on notice boards in estates




and mill (offices, warehouses and housing). The company are considered to evaluate the monitoring of OSH plan implementation. #OFI 4.7.2 The hazard identification and risk assessment has been carried out in the all operational activities both of mill and estates, risk control and measures had been performed such as establihed the SOP, trainings, provide PPE and medical checks to employees who working at high risk. However, it has been observed during the field visit, that the entire established risk control plan has not been implemented and monitored to reduce risk. Based on field observations and interview with workers in Aring 4 (Spraying : PR15J, Block 23 and harvesting : PM11 block 1), Aring 8 (spraying : block 15 PM 13 J, harvest : PM08E Block 4) and Aring 11 (spraying : ER16F block 10 and harvest in block1 PM 00C) found that the workers not use a standard safety shoes (based on DOSH) provided by management. Nonconformity No 2017.3 with major category. 4.7.3 All employees has receive safe job training, and its records can be demonstrated, for e.g. training of workers who exposed to noise (including boiler and sterilizer operators) on 8 July 2017 and training of pesticide operators in Aring 11 on 7 Jan 2017. Based on random interviews held with workers, it was confirmed that they had attended the training and had been aware on the safety and health issues related to their tasks. In addition, safety induction is done every morning during roll-call activities, including checking the use of PPE by employees before work. The company has set the standard of PPE to be used in accordance with the provisions of DOSH, it can be shown the list of PPE by type of work, for example for pesticide operators have to use nitrile gloves, googles, aprons, long sleeves, trousers, helmets, and respirator. The determination of PPE has considered the MSDS and the precautions contained in the material packaging. The management unit has document of “jadual perancangan latihan RSPO dan keselamatan kesihatan tahunan – 2017”, trainings for workers who exposed to high risk such as noise and chemical has been included. Training of workers who exposed to noise (including boiler and sterilizer operators) on 8 July 2017 and training of pesticide operators in Aring 11 on 7 Jan 2017. Based on the field observation in estates and mill found that the PPE has been used by employees. 4.7.4 Determination of Occupational Health and Safety (OHS) officers sighted in all sampling units (Estate and Mill), ie in the document of “Jawatan Keselamatan dan Kesihatan Pekerja 2017”. The unit managers acts as the chairman assisted by the secretary. Regular meetings are held every 3 months, the last meeting in Aring POM on May 28, 2017, Aring 4 on July 19, 2017, Aring 8 on July 27, 2017 and Aring 11 on 5 Sept 2017. The meeting discussed on work accident report, on-site inspection work reports, trainings and other emerging OSH issues. 4.7.5 The SOP and procedures regarding to handling of accidents and emergencies including its reporting provided and sighted, namely: SOP “MENGHADAPI KECEMASAN”” No document FGV/ML-1 A/L2-Pr15, dated 1 June 2016 and procedure of “pengurusan KKP” document no.: FGVPM/L2/PP-11, the SOPs completed with the chart. The company has trained a competent officers for first aid, it can be shown training certificate for examples: - Aring POM : Idris Bin Ibrahim training of first aid and CPR, issued date 25 Oct 2016, valid until 30 Oct 2019 - Aring 4 : Certificate o/b of Mohammad Nor Akmal Bin Mansor No 900509-06-5389 valid for 2 years, on basic first aid,

CPR and AED training, issued on June 2016 - Aring 8 : 3 officers, ie certificate of Mohd Sarif Bin Yahaya No.: 871010-29-5281 valid for two years (Basic first aid,

CPR, AED Training) - Aring 11: Certificate of Mohd Syazwan Bin Saaidon (920415-08-5045) has completed basic first aid, CPR and AED

Training on June 2016, valid for 2 years It was observed that first aid box was provided to the field supervisors as well as made available at several strategic locations at the mill and estates. The company has set the standard of first aid box as much as 20 item, however based on field observation in Aring 4 (Spraying : PR15J, Block 23 and harvesting : PM11 block 1), Aring 8 (spraying : block 15 PM 13 J, harvest : PM08E Block 4) and Aring 11 (spraying : ER16F block 10 and harvest in block1 PM 00C) found that the first aid box brought by the foreman does not in accordance with the established standard. It has been raised as Nonconformity No 2017.4 with minor category




4.7.6, 4.7.7 Local workers are covered by SOCSO/insurance payment performed in monthly basis and foreign workers covered by Etiqa Takaful Insurance (Foreign Workers Compensation Scheme) valid for one year (extension done by the company before the expiry date). Work accidents have been monitored, the records can be shown monthly and yearly, lost time have been calculated using LTI metric. There were no accidents since Jan 2017 at Aring POM, Aring 4 and Aring 8. There was an fatality accident in Aring 11 on 15 Jul 2017 which cause LTI as much as 6000 hours. Evaluation and corrective action has been taken, as well as preventive action has been set as not to re-occur. Insurance and death benefit in accordance with the applicable provisions (RM1000) has been paid by the company dated 17 July 2017 (cash), can be shown receipt by family and heir. Return and medical affairs are borne by the company.

4.7.1 4.7.2 4.7.5

Status: OFI Status: Nonconformity No. 2017.03 with major category Status: Nonconformity No. 2017.04 with minor category

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

4.8.1, 4.8.2 The training program for both estates and mill provided fro year of 2017, it listed in the document “jadual perancangan latihan RSPO dan keselamatan kesihatan tahunan – 2017”, the training that had been conduted among others: SCCS training attended by 12 personnel dated on 10/7/2017

Training of FFB grading in Aring 8 on 15 Jan 2017

Training of safe working for store, 14 Juli 2017 in Aring 11

Training of first aid on 9 Jan 2017, 44 participant in Aring 4

Briefing of commitment to conserve the area by Mr Muhammad bin Abidin (Asistant Manager Aring 4) at roll call area at Aring 4 estate. The training that has been done comprising :

Explaining the importantly of care about environment to the daily livings

Agreement to all the workers taking care of the environment Training report prepared by Zuhazila binti Ismail (RSPO Clerk) and approved by Mr Bakarudin Ismail (manager of

Felda Aring 4), 104 workers that attend the training . The recording of spray training and pesticide handling by producer has done in 12 December 2016 on Aring 4

Estate, Aring 8 Estate on 15 December 2016 and Aring 11 Estate on 14 July 2017

It was observed that all training records had been properly filed. Based on interviews held with workers, it was revealed

that generally the level of their understanding on these subjects.

Status: Comply

PRINCIPLE #5 Environmental responsibility and conservation of natural resources and biodiversity

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

5.1.1 There is available Environment action plan made available at the estate and mill : Environment Aspect Impact (EAI) & for the mill dated 4th January 2016 comprising all the activities at the mill, Aring 8 Estate dated 4th January 2017 and Aring 4 Estate dated 24th May 2017. Based on the document verification, the company had provide the Environmental Aspect impact comprising the process evaluation aspect impact to the environment : 1. identification of estate activity to the environment 2. identification of impact to environment 3. Identification the situation that giving impact




4. Identification the stage of similarity towards and impact 5. Significant of impact (Based on Scoring) 6. Plan to reduce impact Based on the document verification, the company had developed the environmental impact based on the estate activities including :

Rat Baiting

Pre lining before replanting

Spraying anak kayu

Circle spraying

Rotor Shlasher usage (mechanized)

Replanting activities (chipping and felling) of the palm oil

Build and road maintenance

Control bag worms

Ploughing

Lining the nursery

Terracing setup

Building up the drainage

Build up the mechanization lane

Planting the legum cover crops

Building up the drainage boundaries

Building up and planting palm oil Sighted all the estate activities (33nos ) including the diesel stock, maintenance of diesel store has been identified and the aspect impact identification has been recorded . The condition of , control determination of impact has been recorded using matrix of,(AXB=C) and based on the parameter below. :

Risk identification : risk identification – level 1 (12 dan 16)

Level 2 : < 12

Index 4 (everyday ) index 3 (every week) Index 2 (every month) index 1 (every year) = Frequency of the operation The Environment action plan was covering the remaining natural vegetation by: re-establish buffer zone as per Department of Irrigation and Drainage Regulation. Reducing usage of chemical by using mechanical mowers in harvesting, and avoiding spraying in waterways, Legumous cover crop establishment along drain edges and Oil Palm Disease Management. The assessment has been done accordingly by engaging the related stakeholders. The score and review of the Risk Assessment depends on the feedback and meeting discussion with the management decision and stakeholders workers and Aring complexes. 5.1.2, 5.1.3 The environmental management plan is established, there is a responsible person has been assigned for the environmental management plan in Mill and both estate which is Mr Atfan Nawi (manager of Aring A Mill ) and Mr Bakarudin (Manager of Aring 4 estate) . Potential impacts and measures to mitigate negative impacts is covered in the environmental management plan for 2017. There is an evidence that the plan have been implemented with a complete timetable. The plan has incorporated all the monitoring protocol in the EMP. The plan is reviewed yearly the latest in May 2017 at Aring A Mill and estate and Aring 4, 8 and 11 estate. The result of monitoring will be changes on operational of the unit depending on the severity of the matrix timetable provided. There is evidence of form significant environmental aspect and impacts registrar form : refer FPI/ L4 / QOHSE – 1.8 pind 0 that has management plant related to the aspect and impacts for all the process related to the mill activity. Sighted all




the operation of the mill has been listed in environmental management plan. The responsible person for the mill is Mr Khairul Azmi Mohd Mawardzi (assistant engineer) and been approved by Mr Atfan Mat Nawi (mill manager). Sighted also the measures to mitigate negative impacts as per documented including the SOP and action plan by the related person ( e.g : Lab Assistant, foreman, store keeper ,operator and clerk). Environmental managemet plan was in place .Sighted the report of environmental aspect impact through estate activities , waste and pollution. Based on the report there is action plan sighted to reduce the environmental impact : Source pollution action plan sighted responsible person time frame timetable monitoring period FY 2016/2017.

Status: Comply

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

5.2.1 The Company had identified several important aspect of biodiversity in Aring 4 and Aring 8 Estate. Sighted a biodiversity report prepared by Certificate and Due Diligence Unit (CDD) of FGVP(M) and being circulated to both Estate dated 12th july 2017 and 2nd of July 2017 respectively. For Aring 11 situation, the company had produced a HCV full assessment report by Aksenta and dated 25th April 2017. The HCV assessment report for Aring 11 has been done by PT Gagas Dinamiga Aksenta (‘Aksenta’) to carry out HCV assessment in few location of FGVP(M) unit including : Location and area of FGVP(M) PPAs assessed in this HCV assessment (No Estate District State Area (ha)) Tembangau 06 Bera Pahang 465.2

i. Bukit Sagu 06 Kuantan Pahang 43.7 ii. Lepar Hilir 05 Pekan Pahang 77.8 iii. Setiu 01 Setiu Terengganu 128.3 iv. Aring 10 Gua Musang Kelantan 335.6 v. Aring 11 Gua Musang Kelantan 281.2 vi. Krau 02 Raub Pahang 105.8 vii. Krau 04 Raub & Bentong Pahang 114.2

Total hectarage = 1,549.7 ha The Full assessment report has been done by Aksenta and lead By Mr Iwan setiawan (Assessor registered with under HCV RN Fully Licensed Assessor (ALS15039IS). The assessment has been done on February to March 2017 for all the estate above. Sighted from the report total of area 319,2 allocated for HCV area for the whole estate. Based on th report the company had provided all the details including map, the access road to the estate and rare threatened endangered species identified within the estate. 5.2.2 Based on the biodiversity report verified, sighted on the report identification of fauna in the estate including wild boar, monkeys, and squirrels, and water lizard that come across into the estate.There is a plan developed by the estate biodiversity team for 2017- 2022 that include action plan of FGVP(M) towards developing nature and biodiversity around the estate. There is documented biodiversity report of FGVP(M) Aring 8 dated 2nd July 2017 that identified that there is no identification of protected animal at the area. The animal that pass across the river are elephant , tapir and bear. Sighted at the report the buffer zone, and Kelinsar River river that across the estate . There is a ‘Retak River’ that has been marked by buffer zone and electric fence that operate form 7pm to 7 am to control the elephant from entering the estate.Sighted also the description of hotspot area including the river antia, lebir , retak and kelinsar that has not been marked by buffer zone however the action plan has been developed to improve the area. The Company also had developed a procedure of HCV Assesment including : HCV assessment will be communicated to all stakeholders in appropriate form and in order to get a full feedback oral evaluation participatory mapping summary of assessment




5.2.3 The company had developed a training with related stakeholders especially the workers and surrounding people.Sighted a briefing of commitment to conserve the area by Mr Muhammad bin Abidin (Asistant Manager Aring 4) at roll call area at Aring 4 estate. There is a policy of protection and care of environment from PSQM (Now CDD Unit) department signed by Mr Emir Mavani Abdullah related to the commitment of company. The training that has been done comprising :

Explaining the importantly of care about environment to the daily livings

Agreement to all the workers taking care of the environment Report has been prepared by Zuhazila binti Ismail (RSPO Clerk) and approved by Mr Bakarudin Ismail (manager of Felda Aring 4) . Sighted 104 workers that attend the training together with other briefings during morning roll call . Based on the site observation at FGVP(M) Aring 4, 8 and 11, sighte the evidence of RTE being captured and interview with the workers and aboriginal people mentioned that, there are no RTE founded at the estate and nearby area. 5.2.4 The company had provide an SOP of identification of HCV and procedure “kawasan HCV dikenalpasti” melalui pihak berkepentingan dan dilindungi daripada activiti yg boleh membawa kemusnahan. No Dokumen : FGV /ML – 1A/ L2 PR-17 effective date 1st June 2016 and being circulated around the FGVPM estate. Based on the document sighted , the resposnsibility of HCV identification has been divided into several department including:

Responsibilty of personnel in charge;

Estate Supervisor (Mandore)

Manager and assistant manager of each estate

CDD Unite sustainability department of FGVPM

Definition of HCV Classes (HCV class I,2,3,4,5,6) The Company also had developed a procedure of HCV Assesment including : HCV assessment will be communicated to all stakeholders in appropriate form and in order to get a full feedback oral evaluation participatory mapping summary of assessment 5.2.5 The company had conducted the HCV assessment report approved by HCVRN and produced by Aksenta on April 2017. Sighted in the report a Bateq tribe in Kuala Koh Villlage with 44 nos of people in that area and 69 settlement of Bateq aboriginal in Aring 5 Village. All the aboriginal people has been manage by ‘Jabatan Kemajuan Orang Asli’ Malaysia (JAKOA). The categories of HCV has been classified as HCV 5 based on the Aksenta report. Identified Bateq Aborigin HCV has been classified and been listed in the stakeholder consultation in the list of Aring 10 and 11. Based on the stakeholder consultation from the stakeholder meeting, there is no complain and grievances sighted from the minutes meeting and all the request and question from the meeting has been answered by the management of FGVP(M).

Status: Comply

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

5.3.1 During the field and document verification at Aring A mill and Aring 4,8,11 estate, the company had a list of registry of waste produced and being updated every month entitle, type of waste products and method disposal. The registry list of waste including code of registry waste has been sighted at the mill including :

SW 102 - BATERY

SW 110 – E WASTE

SW 305 – engine Oil

SW 306 – Hydraulic Oil

SW 410 – Spent filter

SW 409 – paint container




Sighted also in the estate the registry of waste being listed down including the source of pollution and pollution occurred in the estate and the timeline has been developed into stages :

Jan- mac

April – Juned

July – September

Oktober – Disember Sighted on form : RSPO – P8 / C.5.3 / 5.3.1, the list registry of waste in the estate including :

PPE used

Chemical / pesticide

Paint container

Oil filter

lamp

Electronic devices damages

Battery

Fertilizer Bag

Tires

Soil Pollution

Pape /Plastic/ glass

Domestic waste Sighted during the audit, plan for rubbish collection at the FGVP(M) Aring 4, 8 and 11. Record collection has been done twice a week and the rubbish being dumped at the designated rubbish pit. The scheduled waste had been collected by licensed collector and pesticides container had ben tripled rinsed and punctured for recycling. 5.3.2 Based on the verification on field, the company had also kept the chemical inventory at the mill and used on site, the company had disposed of the Scheduled waste at the mill to Kualiti Alam Sdn Bhd (Registered company and licensed with Department of environmental Malaysia ) regarding collection of Scheduled waste SW 305 – Hydraulic Oil and SW 306 – Lubricant Oil and SW 409 – contaminated container dated 10th September 2017. In the cases of estate Aring 4, 8 and 11, the company had outsourced the Servicing of tractor and oil filter (lubricant and hydraulic oil) to outsources (MKZ enterprise) vendor of FGVP(M). Aring 8 estate has a licensed of storage diesel (18000 litres ) dated 27 April 2016 until 26 April 2017 has been applied for a new license on 11 April 2017. Sighted also the license of Petrol Ron 95 UNTIL 11/10/2017 – FILE NO kpdnkk / GMG/ UB/07/07/PK/100/16/PD – quantity 200 litres per week. However during the site visit sighted the evidence of empty chemical container at the housing area – not tripled rinsed and punctured at the area. The contaminated container of scheduled waste also being kept at the area and not in the scheduled waste store. During the observation at engine room (peringkat 00B) at Aring 8,sighted the oil and diesel (used) has been channeled into the drained and flowing to the land next to the engine room. During the observation at estate Aring 11 sighted the spent filter and lubricant oil at the old engine room nearby the estate office. The pesticides container that being used found next to the diesel store room however not been labelled according to DOE schedule waste regulation. This is raised as Nonconformity No. 05 with major category. 5.3.3 The company had developed a waste management plan at the estate and mill. Sighted the evidence of the plan to reduce Green House Gas for year 2017. There is also a documented identification of sources and type of waste at the estate, impact to the environment, action plan (estimated annual disposable income, recycling, annual recalculated annual quantity estimates, estimated annual quantities reduced) Waste identification has been separated in to 2 categories :

Scheduled waste




Unscheduled waste

Sighted a record of non scheduled waste as per documented : balance in store fpr empty fertilizer bag : 9699 Nos. bag being used to collect the loose fruits and shared with other FGVP(M) estates. Sources of waste and documentation has been identified

fertilizer bags has been recorded : 12,3524 nos dated 30th August 2017

pesticide container : records of return and utilised pesticides container

Sighted during the site visit there is reduce reuse recycle program implemented on site FGVP(M) Aring 11:

Fertilizer bags soil contamination in estate reused in loose fruits collection

Domestic waste disposal air and smell pollution organic waste and domestic waste disposed of methodology (As per SOP company)

5.3.2 5.3.3

Status: Nonconformity No. 2017.05 with major category Status: OFI

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

5.4.1 There is efficiency of fossil fuel usage has been recorded for both mill and estate. The plan has has been implemented at both mill and estate as details of Fossil Fuel Per ton FFB – For year Jan 17 – Jul 17:

Diesel/ FFB production (liter / Ton) – 0.40, 0.37, 0.29, 0.40, 0.05, 0.57, 0.03, 0.27

Total diesel usage per month : January – August 2017 , (litres) = 6300, 4304, 3970, 7003 , 832, 10970, 617, 7365

FFB produced : 15910, 11520, 13750, 17620, 17800, 22180, 26930. (tonnes) Electricity use per ton FFB:

Sighted from January 2017 – June 2017 : (KW/ ton FFB)

2.82,3.64, 2.51, 1.24, 2.20 0.88, 1.24 (downward trend) Sighted a diesel use per ton FFB from Nov 2016 – July 2017 = 7.29, 6.75, 5.6 , 4.88, 4.87, 3.95, 3.83 (ratio). The feasibility studies for biogas plan has not been done but the mill has a plan to utilize EFB by using the drier and feed into the boiler for burning process. Based on the downward trend of utilising electricity for the mill, the company has taken into account the energy efficiency using during FFB process.

Status: Comply

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

5.5.1 & 5.5.2 Prohibition open burning policy observed for FGV with endorsement from President, Mr Mohammed Emir Mavani dated 1/6/2014. Prohibition of open burning addressed in Manual Lestari – Replanting , Doc no. MLSL (Ed.2) – Sec 2. Land clearing using chipping method. Prohibition of open burning policy addressed into stakeholder booklet and briefed to stakeholder including smallholder during stakeholder meeting. No open burning activity found during site observation in PR17K, Block 20, Aring 4 and PR17J, Block 6, Aring 8.

Status: Comply

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




5.6.1 The company had set up the aspect impact assessment from the activity and and record the mitigation of the impact as for the mill casses :

Boiler : smoke emission less than ringleman chart no. 2

Smoke emission less than 15min per day

Dust emission from 0.4g/Nm3

Steam usage

Diesel usage for the vehicles

Black smoke emission when starting the engine

Emission of POME more than 100 ppm BOD

Engine operational – smoke emission

Diesel spillage at diesel tanks

Noise pollution at kernel

Vehicle smoke entering the weighbridge

Lubricant oil at Store

Smoke from prime mover Sighted the company had provide the basic information related to the estates per January 2016 until December 2016 for FGVP(M) Aring 4. Its include all the block and division in the estate :

PM90C

PR 17K

PM 11 E

PM 12 F

PM13 G

PR 15H

PR15J

FN04A List of fertilizer usage :

Rock Phosphate Egyptian

Rock Phosphate ‘cristmas island’

NPK MAG GRAN 12/12/17 + TE

NPK MAG GRANULAR

AGROBLEN

GRAN NK

BORAX

Kieserite

Mixture NK

Muriate of Potash MOP List of lorries utilizing the diesel :

Daihatsu Delta

Total of : 4411 – 5304 litres range from January – Ogos 2017

Total of lorries , usage : tractor usage , Mini Kubota , van, Toyota Hilux, Bas, 3 generator set, Water pump – (2 Nos)

There is documented list of fertilizer being used FY 2016 from January to December regarding type of fertilizer being used :

Rock Phosphate Egyptian ; 132,800

Kieserite : 116,400

Mag Granular : 191,900




Mixture NK : 56,550

NX Mixture : 559,100

NPK Mixtures : 784,400 Type of pesticide usage :

Basta 15 : 1650 litres

Ecomax 400 Litres

Garlon : 250 Litres

Paraquat 13% : 780 Litres

Roundup – raingard : 2200 Liters

Supresate 41 : 6420 Litres

Miracle : 29,250

Furadan 3G : 1050

Genee 15 : 1240

Butik : 1627.00

Juru GM : 200750

Juru 20 DF : 3000 ns The monitoring of noise level had been done by Nabbir Laboratory for FPISB Aring A and lab result by SB Calibration Laboratory Sdn Bhd, issued dated in 21st September 2010 . sighted also the competent person for factories and machineries act [ JKKP No. HIE 127/5/3-1 (NO112)].The calibration range is between 30 – 130 Db and the result is 94 – 114.0 db. Average. Sighted the reulat has been taken in few working areas such as: press [75.0 – 83.5db], nut plant cracker[83.6 – 89.5 db], boiler station [92.3-93.6 db] sterilization unit [91.1 – 94.2 db]. All of workers engaged in high noise areas undergone annually audiometrict test, result of latest audiometrict test all workers (boiler and sterilizer operators) on normal conditions. 5.6.2 Sighted a document of plan to reduce the ‘Green House Gas’ for year 2017 Ldang FGVP(M) Aring 4. Sighted the activities in the estate that contribute to green house gas e.g : diesel usage, pesticide usage, chemical fertilizer usage, domestic waste usage, organic waste domestic usage. There is also action plan been documented to reduce the pollution and activity that contribute to GHG emission as per flow chart :

Estate activity that release GHG Action plan to reduce the emission program to reduce GHG Emission person in charge Status of the action plan

Based on the field visit, sighted that there is a signboard of decibel sign located at the machineries. Sighted the workers also wearing PPE (safety ear plug and ear muff) during the field visit and based on the interview with the management and workers, the safety briefing regarding noise decibel had been briefed during morning roll call related to PPE usage, The management unit has been emphasized to the workers that working in the area. third party laboratory to FPISB – dated 8th June 2011 – report on monitoring of noise exposure. 5.6.3 GHG monitoring include the record of tonnage fertilizers, and diesel usage in the estate and mill . The reporting GHG has been made through PALM GHG toolkit as per evidence sighted. Sighted the evidence of the Palm GHG calculation has been submitted to Ms Devaladevi Sivaceyon (RSPO personnel GHG) as per email verification dated 23th August 2017 by Mr Abdul Rahman Awang , CDD Unit of FGVP(M). Summary of Net GHG Emissions :

Emissions per product tCO2e/tProduct Extraction % Production ton/year

CPO 1.3 OER 20.5 FFB Processed

49,496.37

PK 1.3 KER 5.00 CPO 11,751.86




Produced

Land Use ha

OP planted area 16,196.95

OP Planted on peat 0

Conservation (forested) 434.83

Conservation (non-forested) 0

Summary of Field Emissions and Sinks

Own Crop Group 3rd Party Total

tCO2e tCO2e/h

a tCO2e tCO2e/ha tCO2e tCO2e/ha tCO2e tCO2e/ha

Emissions

Land conversion

13,3154.74 8.22 - - - -

CO2 emissions from fertilizer

8907.59 0.55 - - - -

N2O emissions 7003.44 0.43 - - - -

Fuel consumption

828.06 0.05 - - - -

Peat Oxidation 0 0 - - - -

Sinks

Crop sequestration

-126,213.01

-7.79 - - - -

Conservation Sequestration

-3987.39 -0.25 - - - -

Total 19,693.43 1.22 - - -

Summary of Mill Emissions and Credits

tCO2e tCO2e/tFFB

Emissions

POME 29,879.94 0.2

Fuel comsumption 225.78 0

Grid Electricity Utilisation 469.76 0.01

Credits

Export of Grid Electricity 0.00 0.00

Sales of PKS -43189.3 -0.28

Sales of EFB 0.00 0.00

Total -12,703.82 -0.08

Palm oil Mill Effluent (POME) Treatment

Divert to compost 0.00 %

Divert to anaerobic digestion 100.00 %

POME Diverted to Anaerobic Digestion:

Divert to anaerobic pond 100.00 %

Divert to methane capture (flaring) 0.00 %

Divert to methane capture (electricity generation) 0.00 %

6.5.2 Status: OFI




PRINCIPLE #6 Responsible consideration of employees and of individuals and communities affected by growers and mills

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

6.1.1; 6.1.2 & 6.1.3 CDD conduct Social Impact Assessment for Aring Complex on 2016 by participation of stakeholder such as foreign workers, local workers, contractor, supplier, techer, community/indigenous people, felsco/security and government agecy. These report is described of positive and negative impact by plantation and mill operational, plan for monitoring and manage those impacts. The components that will be managed and monitored are:

Access of community to facilities (road and recreational area)

Additional activities of community for welfare increasing (provide of market area and skill training)

Religion and cultural aspect (provide of mosque)

Access to education and health facility (provide of school and health facilities adjacent pantation area)

Transportation infrastructure, communication process and migrant influence (implies to income of local people)

Replanting program (positif and negative impacts) Based on interview with workers and local community is known that all social issue has been covered by SIA assessment such as additional activities of community for welfare, transportation infrastructure, communication process and migrant influence. 6.1.4 There were questioners as atools that the company used for gathering information from stakeholder and available of attendant list in each estate. The management of FGVP(M) Aring has have of monitoring and management plan Social Impact Assessment 2016/2017 based on input from stakeholder (workers and community/smallholder member). The evaluation of social impact management plan conducted ones a year, the last evaluation was October 2016, on for 2017 will be held on October 2017. 6.1.5 The certification scope is not include the smallholder.

Status: Comply

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

6.2.1; 6.2.2 FGVP(M) has a Communication Procedure (ML-1A/L2-Pr12, 1 June 2016) which explain a system of communication with internal and external parties related to the environment around the area, hazards and risks in the workplace. In the policy also stated about the responsibilities of Manager and the responsibilities communicating with the head office and any other government bodies. The management also has appoint one person in charge of communication from each estates and mill office. The PIC for each unit was assistant manager 6.3.2 Management unit maintains and documented a list of stakeholders which consist of internal and external stakeholder. Based on the latest stakeholder list that update on 2017 there are 4 clinic, 3 hospital, 13 government agencies and 1 local contractor, etc. Management unit also conduct stakeholder meeting once a year. The stakeholder meeting has been done at Dewan Felda Chiku attended by management of Felda Global Ventures Plantations, workers representative, staff and related stakeholders including villagers of Felda Aring 1, Felda Chiku 5, teachers,groceries store and auxiliary police.




Status: Comply

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

6.3.1 & 6.3.2 The management unit of FGVP(M) Aring has have Procedures of Complaint and Grumbling Handling (Number: ML - 1A / L2 – Pr13, 1 June 2016). The procedure aim to resolve all complaints and grievances fairly and to maintain good relations between the company and other parties. The company was installed complain box in each estates and mill. Management unit also have records of complain in log book. The grievance from migrant workers may be submitted to the worker union. The worker union consist of representative from Malay worker, Bangladesh worker, Indonesia worker and India worker. Based on verification of Record Complaint Book it found no complaints from the surrounding community or external stakeholder. By the results of external stakeholder consultations around of plantation area has showed there is no complaints and dispute between the company and the other parties. But, for internal stakeholder there were complaint related to housing and each management unit has resolve the complaint.

Status: Comply

6.4 Any negotiations concerning compensation for loss of legal or customary rights are dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions.

6.4.1; 6.4.2 & 6.4.3 FGVP(M) has Procedure for Knowing Legislation and Land Conflict Resolution (Number: ML1A/L2/Pr10, 1 June 2016. These procedures as a guide to resolve problems of land boundaries among company and local communities related to legal or customary rights. Based on documents verification, information from staff of plantation and stakeholder consultation was known that there is no compensation processes in areas managed by the FGVP(M) in Aring Complex. All lands are managed today is a land that has been set by the Kingdom of Malaysian since early period of company operates.

Status: Comply

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

6.5.1 The type of employment in the company is local workers (permanent) and foreign workers (contractual), pay and condition are describes in each employment agreement and wage-define letter from HRM. Sighted the circular letter number no. FGVH/AOM.03 (32) date 1 August 2016 on the implementation of the minimum wage, that from 1 July 2016, the minimum wage will be implemented in accordance with the section of 23 of Akta Majlis Perundingan Gaji Negara, which defined based on region of Malaysian peninsula RM1000 (per month) and Sabah/Sarawak/Labuan RM920 (per month). Provided the provisions of harvester, harvesting kanganies and loaders in MAPA/NUPW collective agreement for workers and company, in the article 6 stated that the each cutter/carrier shall be paid for the satisfactory performance of the duties. Provided the rates for total weight of ripe bunches and loose fruit harvested as for March 2017 Can be shown the payslip of employees in sampled units based on random check, which inform income component (basic pay, overtime, insurance benefit, incentive) and deduction (SOCSO dues for local workers and loans). Both local and foreign workers has been paid in accordance with applicable regulation. 6.5.2 Employment payment and conditions explained in the document of collective agreement 1 Jan 2016 – 31 Dec 2018 namely “Perjanjian kerja bersama antara Felda Palm Industries Sdn Bhd dan kesatuan pekerja-pekerja Felda




Semenanjung”, which is written in Bahasa. These agreements cover terms of services, salary, allowances, monetary and medical benefits, confirmation of post, salary scale, transfer, retirement, working hours, overtime, traveling claims, subsidies (housing loan, electricity supply, water supply), leave entitlement, discipline and formation of a committee at the headquarters and regional levels. As for foreign workers, there are a signed agreement/contract for each employee for period of 3 years and renewed from year to year (not exceeding 10 years), covering the terms of : type of work and location, working hours, salary/wages, accomodation, transportation, health and medical examination, work equipment and appliances, passport and permit, employee insurance, employee’s leave, death of employee, keeping of employees passport (only for safety reason, employees may obtain the passport from the employer as a valid travel document if necessary), code of conducts, termination of contract, safety health guide. Based on random checks, for e.g.: - Nurdan (Indonesian – passport B3671599), signed on 8 Sept 2016, written in Bahasa - Rajak Hemanta (Indian), Passpor No. L4498966, contract renewed on 21 Dec 2016, written in language of origin

country, should be considered to write the employment contract of Indian and Bangladeshi in bilingual (english and origin country). OFI

6.5.3, 6.5.4 During the field visit to employee’s housing complex at FGVP(M) Aring 4, Aring 8 and Aring 11, it was observed the adequate housing (according to the applicable standard), water supplies (provided the water filter facility), electricity, place for worship and clinic has been provided by the company. The company provides a store (kedai runcit) on each estate that provides basic need at an affordable price, in addition there is transportation facility (bus/van) if employees want to shop for daily needs outside / nearby markets. There is no complaints regarding to the facility and payment that were captured during interviews with the employees.

Status: Comply

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

6.6.1, 6.6.2 An official statement in freedom of association namely “Polisi Hak Kebebasan Bersuara & Mengangotai Kesatuan”, signed by Mohammed Emir Mavani Abdullah, President & CEO FGV dated 01.06.2014. Based on interview with workers, for e.g. sorter in Aring POM, harvester and sprayer in estate known that their aware of their rights to join/not join a union. The policy has been communicated to the workers during the roll-call and displaying in the notice board in estates/mill office and housing. Can be shown the minute of meeting of Kesatuan Pekerja-pekerja Felda in all unit sampled, for e.g. on 15 May 2017 in Aring POM, 19 Juli 2017 in Ring 4 and on 23 Aug 2017 Aring 8.

Status: Comply

6.7 Children are not employed or exploited.

6.7.1 There is company policy on the prohibition of child labor does not justify individuals under the age of 18 taken to work in accordance with applicable law), stated in the document “polisi pekerjaan kanak-kanak”, signed by President & CEO FGV on 1 June 2014. Consistent between document verification (employee’ master list) and field observation, there is no found any workers who is under the age of 18 (the minimum working age under Malaysian Labour Laws Act A1238) being hired by the company.

Status: Comply




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

6.8.1 An equal opportunities policy in Bahasa Malayu stated in the document of “Polisi Kesetaraan Peluang” was publicly made available. Communication to workers are performed during the roll-call and displayed in the work-station, housing notice board and office’s information board. 6.8.2, 6.8.3 There is no found any discrimination to the employees based on gender, religion, race, country and ect, all workers (local or migrant) were covered by the same payments and conditions of employment. This was confirmed during random interviews held with the workers, also confirmed that there is no complaint and grievance raised in regard of discrimination.

Status: Comply

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

6.9.1, 6.9.2, 6.9.3 Sighted a published policy in Bahasa Melayu on sexual harrasment and violence as well as the policy for reproductive rights, those documents was signed by the President & CEO FGV on 1 June 2014. Estates and mill has been formed the gender committee to handle any complaint and grievance in associate with gender issues including but not limited to sexual harrasment and reproductive. Sighted the appointment letter of Ahli Jawatankuasa Wanita whose responsible for the tasks related to women’s matters. There is a specific grievance mechanism on the document of “mekanisme aduan gender” document no.: FGV/ML-1A/L2-Pr14, no issue 1, effective date 1 June 2016. Based on minute of meeting and interview with female workers (store keeper in Aring 8 and Aring 11) confirmed that there is no issues and report regarding to sexual harrasment, productivity rights and other issue.

Status: Comply

6.10 Growers and mills deal fairly and transparently with smallholders and other local businesses.

6.10.1 & 6.10.2 Pricing mechanism is determined by Malaysian Palm Oil Board (MPOB). The management of Palm Oil Mill can access the price standard for everyday by MPOB website. The standard of FFB price was put on Palm Oil Mill board announcement and it can access by all outsider supplier. There in an evidence of FFB pricing by MPOB dated on September 2017. 6.10.3 Management unit of mill and estates has been showed of Work Agreement between FGVP(M) with the local contractor, such as Work agreement No. C95140252017 on 27 July 2017 between Aring 4 Estate and local contractor (Nik Azhuar Ghazali) for transport FFB. Based on record of payment it is known that payment has been made in accordace of agreement. Mill also can show evidence of payment record for FFB purchasing from independent smallholder, such as:

Kim Ma Oil Plam: for FFB sent in period 12 – 18 August 2017, has been paid on 23 August 2017

Nasir Bin Ibrahim: for FFB sent in period 12 – 18 August 2017, has been paid on 23 August 2017

Status: Comply

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

6.11.1 There is contributions given by the management to the community lived around the Aring Complex. For instance, festive season contribution, schooling facilities, scholarship and medical assistance. Based on the documentation review, there is some contributions given by the management to the contributions of the local communities. For example, Aring 8 has




provided food for events in Sekolah Kebangsaan Aring on July 2017. There are also, mosque and badminton area for the community to use. FGVP(M) also give donation on workers birthday. 6.11.2 The certification scope is not include the smallholder.

Status: Comply

6.12 No forms of forced or trafficked labour are used.

6.12.1, 6.12.3 The company evidenced that no forms of forced or trafficked labour are used, sighted the procedure of recruitment (for local and foreign) on the document no.: FGVP(M) No. FGV/JTK/POL/001 (Manual pengurusan tenaga kerja ladang), which mentioned that foreign workers must have a work permit and a passport and must be registered as a work force in the country of origin. Based on document verification and field visit found that only Indonesian, Bangladeshi, Nepali and Indian are employed in sampled unit (Aring 4, Aring 8 and Aring 11). In this case, its not an a representation of other unit regarding to the migrant workers (based on country of the origin). Sighted the copy of passport and work permit, for e.g. : - Nurdan (Indonesian), passport: B3671599 (issued 4 April 2016, valid until 4 April 2021); permit issued date : 27 Sept

2016, valid until 7 Sept 2017, Ref No. KDN/16031/ELAVL4208103 - Jalal Uddin (Bangladeshi), passport: BC0407346 valid until 21 Oct 2019, permit no. PD71377290 valid until 29 Jan

2018 - Rajak Hemanta (Indian), passport: No. L4498966 valid until 7 Aug 2023, permit no. PD6803230 valid until 21 Dec

2017. Interview held to foreign workers randomly and confirmed that the employment condition and payment has been communicated prior to contract signed (in the origin country). The company considered to maintain the records and documentation of employees interview process in the origin country. OFI Passport are kept by the company in the respective estate for safety reason, sighted the document of "borang penyerahan passport", which stated that its may obtain at anytime if there is a needed. Its consistent with the interview result with workers in FGVP(M) Aring 4, Aring 8 and Aring 11. 6.12.2 There is no found any substitution contract, as in the work permit and contract are written for plantation workers and its in accordance with the result of interview with workers.

6.12.1 Status: Opportunity For Improvement

6.13 Growers and millers respect human rights

6.13.1 An official statement on the document of policy of human rights, issued dated 01 June 2014, mentioned that the company committed to support of human rights. The policy has been communicated to the workers during the roll-call and displaying in the notice board in estates/mill office and housing. During the 2017 have never been any violations of human rights in the Aring POM and its supply bases. 6.13.2 Not applicable, since the audit held in Semenanjung – Malaysia.

Status: Comply

PRINCIPLE #7 Responsible development of new plantings

There is no new planting since November 2005, first planting is 1987 and currently FGVP(M) Aring Complex has been entered the second cycle of planting. According to information from RSPO Compensation Executive (Dillon sarim) this




POM complex have been disclosed as zero non-compliant land clearance. However there are several abandoned area in Aring 10 & Aring 11 with area 616.80 Ha, HCV assessment was conducted on February 2017 by Aksenta, while the report is on review process at HCV RN, therefore this area was exclude from certification scope.

Status: Comply

PRINCIPLE #8 Commitment to continuous improvement in key areas of activity

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

8.1.1 Internal Audit for Plantation & Mill

The Company has procedures to monitor the operational activities in the estates and mills through the implementation of internal audit conducted according to SOP of Internal Audit. Implementation of internal audit conducted every semester by Mill Advisor and Plantation Advisor.

Environmental

Objectives and targets established at mill. Relevant management action plan observed on yearly basis. Sufficient programs in place and responsibility defined. Monitoring on management action plan performed and in good progress.

Waste management plan defined for overall estate’s activities. GHG emission reduction plan established. The management unit has continuous improvement program and records, such as:

- Paraquat usage reducing program. - Barn owl boxes added on each estates - Beneficial plant on each estates - Feromon trap on replanting area - Quarterly Wildlife monitoring. - Buffer zone monitoring every month. - Erosion reducing on slope area. - EFB using program (7000 MT) - Zero burning campaign. - Foreigner training program - Harvesting control for optimum production, etc

Status: Comply




3.2 Summary of Assessment Report of Supply Chain Requirements

Clause (Module E) CPO Mills - Mass Balance Requirements

E.1 Definition

E.1.1 Certification for CPO mills is necessary to verify the volumes of certified and uncertified FFB entering the mill and volume sales of RSPO certified producers. A mill may be taking delivery of FFB from uncertified growers, in addition to those from its own certified land base. In that scenario, the mill can claim only the volume of oil palm products produced from processing of the certified FFB as MB.

Aring A POM is plan to used RSPO supply chain of Mass Balance module because mill still received FFB from the outgrowers which has not been certified with RSPO.

Status: Comply

E.2 Explanation

E.2.1

The estimated tonnage of CPO and PK products that could potentially be produced by the certified mill must be recorded by the CB in the public summary of the P&C certification report. This figure represents the total volume of certified palm oil product (CPO and PK) that the certified mill is allowed to deliver in a year. The actual tonnage produced should then be recorded in each subsequent annual surveillance report.

Estimates of CPO and PK produced by Aring A POM obtained from the data of 12 months before the audit activities and have been described in this ST-2 report.

Status: Comply

E.2.2

The mill must also meet all registration and reporting requirements for the appropriate supply chain through the RSPO supply chain managing organization (RSPO IT platform or book and claim).

RSPO IT Platform member registration number: RSPO_ PO1000003045

Status: Comply

E.3 Documented procedures

E.3.1

The site shall have written procedures and/or work instructions to ensure the implementation of all the elements specified in these requirements. This shall include at minimum the following: a. Complete and up to date procedures covering the implementation of all the elements in these requirements; b. The name of the person having overall responsibility for and authority over the implementation of these

requirements and compliance with all applicable requirements. This person shall be able to demonstrate awareness of the site procedures for the implementation of this standard.

Aring A POM has had procedure for the implementation of supply chain in the SOP for Mill RSPO Supply Chain Certification System (FGVPM-RSPO SCCS, No. Isu 3; No Rev 1.0; 1 August 2016). SOP describes the procedure to guarantee the products produced by the mill can be traced to its source and certainly comes from certified sources. The procedure also explains the related officers and the responsibility in the implementation of the requirements i.e. mill manager. CDD and mill representative can demonstrate the documentation how to segregate RSPO product and non RSPO product if mill has been certified.

Status: Comply




E.3.2

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

Aring A POM has had SOP for Mill RSPO Supply Chain Certification System. SOP describes the procedure to guarantee the products produced by the mill can be traced to its source and certainly comes from certified sources. To find the source of FFB comes from the estate that has been certified with RSPO and then it’s stamped with “RSPO Certified FFB” on the FFB Consigment Note and weighbridge ticket. Based on description from CDD and mill representative, mill also use computerize system to record the source of FFB. The system will be input with certified source (estate name) and non certified source (independent supplier, outgrower and smallholder).

Status: Comply

E.4 Purchasing and goods in

E.4.1

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

Aring A POM not certified yet and this standard will be verified after mill has been certified.

Status: Comply

E.4.2

The site shall inform the CB immediately if there is a projected overproduction of certified tonnage.

Aring A POM not certified yet and this standard will be verified after mill has been certified. FGVP(M) has had SOP for Mill RSPO Supply Chain Certification System which describe that mill has daily report which infor FFB input, mill only can sell the certified product from positive stock and shown in mass balance record, mill need to report to CB immediately if there is overproduction from projected production.

Status: Comply

E.5 Record keeping

E.5.1 a. The site shall record and balance all receipts of RSPO certified FFB and deliveries of RSPO certified CPO

and PK on a three-monthly basis. b. All volumes of palm oil and palm kernel oil that are delivered are deducted from the material accounting

system according to conversion ratios stated by RSPO. c. The site can only deliver Mass Balance sales from a positive stock. Positive stock can include product

ordered for delivery within three months. However, a site is allowed to sell short.(ie product can be sold before it is in stock.)


Status: Comply

E.5.2 In cases where a mill outsources activities to an independent (not owned by the same organization) palm kernel crush, the crush still falls under the responsibility of the mill and does not need to be separately certified. The mill has to ensure that the crush is covered through a signed and enforceable agreement.


Status: Comply




3.3 Conformity Checklist of Certificate and Logo Use

1. Evidence of permission or approval certificate and logo from Certification Body which submitted by Client

X or√

ST-2 The company does not use RSPO logo.

√

2. Implementation of certificate and logo used by Client comply with size and type (shape) against Guideline of Logo Use

X or√


√

3. Implementation of Certificate and Logo is not used on product

X or√


√

4. Controlling of Certificate and Logo, including withdrawing inappropriate logo.

X or√


√




3.4 Summary of RSPO Partial Certification

Compliance of the uncertified management units of Felda Global Ventures Holdings Berhad against the rules for partial certification was determined through Self Assessment in accordance with RSPO Certification System clause 4.2.4. A summary of findings is as stated below Felda Global Ventures Holdings Berhad Time Bound Plan is explaining in table 1.10. Felda Global Ventures Holdings Berhad run seventy two (72) mills and Seventy Five (75) Complex in Malaysia and Indonesia and no one has achieved RSPO certified. Felda Global Ventures Holdings Berhad has informed the Time Bound Plan progress, MUTU has considered that Felda Global Ventures Holdings Berhad is comply with the RSPO requirement for Time Bound Plan. The Time Bound Plan was revised and declared by Felda Global Ventures Holdings Berhad on 31 March 2017. MUTU has verified partial certification for un-certified unit’s subsidiary of Felda Global Ventures Holdings Berhad based on their Time Bound Plan. There are seventy two (72) uncertified management unit of Felda Global Ventures Holdings Berhad. MUTU Auditor verified positive assurance against the company internal audit and supporting evidence as well as any information from others sources. MUTU Auditor has verified company partial certification and concludes that:

There is no significant land conflicts which have not been declared above

The company has follow RSPO requirement related to New Planting Procedure and Remediation and Compensation Procedure.

There is no labour disputes that are not being resolved through an agreed process All plantations established since 2005 have been done so in accordance with the applicable laws of the country and

that there is no evidence of non-compliance with law in any of the non-certified holdings which has not been declared above

2.1 Un-Certified Units or Holdings

Section Requirement Concerns to Discuss, if any

2.2.1 Did the company conduct an internal audit? If so,

has a positive assurance statement been

produced?

Company Group/Holding Statement:

Yes, there was an internal audit and has positive

assurance statement.

Auditor Verification:

Yes, at the current status only 16 complexes already

have internal audit in year 2016. Seen the internal audit

done by Certification & Due Diligence (CDD)

Department. The NC during the audit still in progress to

close. All certification bodies that will do the audit for

FGV need to verify those NC. Others complex will do

as per their time bound plan. Overall findings is positive

as per before.

2.2.2 No replacement after dates defined in NIs

Criterion 7.3 of:

Primary forest.

Any area identified as containing High

Conservation Values (HCVs).



As per this year audit, there has been no replacement

of primary forest area. However, there is one issue

reported by Chain Research Reaction regarding HCV

clearance in Kalimantan.




Any area required to maintain or enhance

HCVs in accordance with RSPO criterion

7.3.

FGV already brief this issue to RSPO secretariat. All

details summary as per below:

HCV clearance Kalimantan reported by Chain Research

Reaction

ISSUE ACTION PLAN

PROGRESS

DATE OF

COMPLETION

HCV clearance

at

PT CNP and

PT

TAA

Engaged

independent

consultant for

ground investigation

20 April - 4th

May 2016

Investigation finding

presentation to FGV

management

9th

May 2016

Brief presentation to

RSPO on the

investigation

findings

10 May 2016

Letter to stop all

operation in HCV

area

10 May 2016

1st Public statement

on HCV clearance

at PT CNP and PT

TAA on FGV

website

22nd

May

Discussion on

Conservation and

remediation plan

with RSPO technical

Director

23 May 2016

2nd Public

statement on HCV

clearance at PT

CNP and PT TAA

on FGV website

25 May 2016

Sent a letter to

RSPO on action plan

for PT CNP and PT

TAA

27th May

2016

3rd Public statement

on HCV clearance at

PT CNP and PT TAA

on FGV website

15 June 2016

Develop the

Conservation and

Remediation plan

and relevant SOP

1st July 2016




Appointment letter to

engage independent

external social

mediator to handle

negotiation with

affected

communities

1st July 2016

Conducted social

mediation and

engagement with

affected

communities

18 July to 30

July 2016

Consultation with

FGV legal

department on local

national regulation.

Found that the area

(PT CNP and PT

TAA) were outside

the Indonesia Peat

Moratorium no. X

(10)

30 July 2016

4th Public statement

on HCV clearance

at PT CNP and PT

TAA on FGV

website

12 August

2016

Sent the progress of

action taken to

RSPO using SRT V

19 August

2016

Sent out the

Conservation and

remediation plan to

PT CNP and PT TAA

for implementation

7 Oct 2016

Meeting with RSPO

Technical Director

and RSPO

Complaint

Coordinator on PT

CNP and PT TAA

issue

14 Oct 2016

Sent the progress of

action taken to

RSPO using SRT V

17 Oct 2016

5th

Public Statement

on HCV clearance

at PT CNP and PT

5 Nov 2016




TAA on FGV

website

Meeting with RSPO

secretariat on

Compensation

Panel feedback and

our complaints on

HCV updates in

WSJ complaint

update

25 Nov 2016

Received comment

and

recommendation

from RSPO

compensation Panel

on PT CNP

1 Dec 2016

Meeting with the

FGVKalimantan at

PT CNP office for

further engagement

with

ELC/Aidenvironment

and Aksenta

13 Dec 2016

Meeting on new

revised Indonesia

regulation PP57 and

PP 71 with Badan

Lingkungan Hidup

dan Kehutanan as

well as with Dinas

Perkebunan

Kalimantan Barat

14 Dec 2016

Meeting with

ELC/AIDH and

Aksenta on new

proposal to include

Aidenvironment

proposal for our

Landscape

conservation plan

14 Dec 2016

Meeting with

PERMADA

(Persatuan Madura

& Dayaks) on their

request to develop

the

HCV area

15 Dec 2016

Site visit to PT CNP

and PT TAA with

Kalimatan team

15 Dec 2016




Finalizing the next

action for

conservation

engagement with

ELC/AIDH and

Aidenvironment

16 Dec 2016

Kalimantan

operation to seek an

area with local

Bupati to replace the

cleared HCV area

In progress

REVIEW HCV

ASSESSMENT

6th

Public Statement on

HCV clearance at

PT CNP and PT TAA

on FGV website

10 Feb 2017

PERSADA meeting

with RSPO Jakarta

9th

Mar 2017

2.2.3 Any new plantings since January 1st 2010 must

comply with the RSPO New Plantings Procedure.


There is new planting after 1 Jan 2010.


NPP audit has been carried out for all FGVPM Estate

and is currently under review. Data as per below

ESTATE HECTARAGE

INVOLVES IN

NPP

Status

FGVPM Chegar

Perah 1

59.32 Still on going.

Waiting

consultant

(Aksenta) to

present the final

report for HCV,

SIA, LUCA &

HCS ssessment.

FGVPM Bukit

Sagu 8

61.54

FGVPM

Tembangau 5

86.58

FGVPM

Selendang 3

97.59

FGVPM Krau 2 170.78 Waiting

consultant

(Aksenta) to start

NPP

assessment in

February 2017.

FGVPM Krau 4 80.28

FGVPM Bukit

Sagu 6

72.87

FGVPM Lepar

Hilir 5

253.62

FGVPM

Tembangau 6

495.53

FGVPM Aring

10

518.52

FGVPM Setiu 01 130.72

Total 1,722.32

2.2.4 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.


There is issue on land conflict although it was captured

on Felda Membership, but FGV also indirectly involved

as part of the claim involve FGVPM Sahabat 55 The

issue still in progress. Data as per below:

Member : Lembaga Kemajuan Tanah Persekutuan

(FELDA) /Orang Dusun Desa Begahak

Date Filed : 16 February 2015

Complaint : Community of Desa Begahak

Complaint : The company has breached the

communties user rights to

the land in breach of Principle 2.2

Status : Box F – Action Plan

Synopsis

According to the Enquiry National Hak Tanah of

Malaysia conducted by SUHAKAM, the state

government had given 1260 acres of land to the Dusun

Begahak community in 1981. At the same time, the

same land was alienated to FELDA for development.

The complainant raised the issue that FELDA has no

right to develop their land and should return it to the

community because the land originally belonged to the

community. The complainant also stated that the

cemetery area is being developed by FELDA.

FELDA enclaved 916 acres of the said land and gave it

back to the community on the 25th of May 1982. The

community planted fruits and other crops on the land.

We have received some evidence from both sides. The

evidence needs to be scrutinised and investigated

further.

Remarks

2 July 2015 – It was agreed that the matter would be

referred to the FELDA/FGV Sustainable Steering

Committee on 7th July 2015.

22 June 2015 – FELDA had another meeting with

Robin Balud and the representatives of the community

and agreed to exchange documents on the land claim.




A site visit was also undertaken with the community

members.

4 June 2015 – FELDA met with Robin Balud again and

agreed to do a joint mapping of the land.

10 April 2015 – FELDA met the complainant, Robin

Balud, in Kota Kinabalu Sabah, to discuss the

complaint.

9 April 2015 – FELDA met the community (Desa

Begahak) members and discussed the issues from the

complaint and the land claim.

13 March 2015 – RSPO had a conference call

meeting with the head of the Dusun Begahak

community to understand the situation.

16 March 2015 – RSPO had a conference call meeting

with FELDA representatives to discuss the situation.

17 March 2015 – The complaint was raised to the

Complaint Panel for further discussion and action.

4 June 2015 – FELDA met the complainant Robin

Balud and discussed the main issues of the land claim

and compensation.

22 March 2016 – RSPO sent complaint notice to

FELDA.

1 April 2016 – State Land and Survey Department

begin its mapping exercise.

4 April 2016 – FELDA submits action plan to RSPO

dated 27 March 2016.

6 May 2016 – FELDA withdraws its RSPO Principle

and Criterias certificates.

26 July 2016 – Complainant send a formal letter to

FELDA to settle the customary land dispute.

19 August 2016 – Progress report submitted by Felda.




20 September 2016 – Felda met with the community to

discuss on how they will progress on the complaint,

once the joint mapping report is received from the

Sabah Land and Survey department

2.2.5 Any Labour disputes are being resolved through

a mutually agreed process, in accordance with

RSPO criterion 6.3.



There is 1 issue happen in FGVPM Palong Timur 04

(Now FGVPM Palong Timur 05) and the details is

elaborated below:

1. FGVPM PALONG TIMUR 04 (NOW FGVPM

PALONG TIMUR 05): Claims on 19.06.2012 with

value of summon RM61,968.60 and summon

status is Court Appeal

2.2.6 Any Legal non-compliance is being resolved in

accordance with the legal requirements, with

reference to RSPO criteria 2.1 and 2.2.



During partial audit, 1 issue with DOE in FPISB

Selancar 2A POM is sighted. Summon no : SJ 53-

4/2016 ; Date 14.04.2016 in Mahkamah Seksyen

Kuantan.

Fixed for Trial on 01.03.2017, 02.03.2017 and

03.03.2017.

Also 1 issue for minimum wages. Refer to 4.3.1

All process still in progress and CB will verify this issue

in next audit or during audit in this mill.







3.5 Identification of Findings, Corrective Action, Observations, OFI and Noteworthy Positive Components

3.5.1 Identification of Findings, Corrective Actions and Observations at ST-2

NCR No. : 2017.1 Issued by : Ardiansyah

Date Issued : 14 September 2017 Time Limit : 13 September 2018

NC Grade : Major Date of Closing : 3 November 2017

Standard Ref. &

Requirement

: 2.1.1.

Evidence of compliance with relevant legal requirements shall be available.

Non-Conformance Description & Evidence observed (filled by auditor): The certification unit cannot showed the evidence of SPAN License in FGVP(M) ARING-8 estate.

Root Cause Analysis (filled by organization audited):

SPAN License have expired and in the process of renewal of SPAN license, during the Audit, Management failed to provide

application records and feedback from SPAN regarding license renewal status

Correction (filled by organization audited):

Estate Management FGVPM Aring 8 will provide a record of application and feedback from the technical services of the cave

region and also feedback from SPAN on the status of application renewal of SPAN license

Corrective Action (filled by organization audited):

1. Application record and feedback from regional technical services 2. Records of feedback from SPAN on the status of application renewal of SPAN license

2. Copy of completed application form and submitted to SPAN 3. Jabatan Teknik FGVPM headquarters will be in charged regarding the SPAN License with the authority starting from 2018. 4. Procedure of 3 Month before renewal the license will be implemented. Procedure that applied on every project is a law

enforcement mechanism. (Refer attachment). PIC that will monitor expire date of license on every project is Assistant manager and supply Clerk that had been appointed.

Assessor Evaluation and Conclusion (filled by auditor):

Verification on 13 October 2017

The management unit was shown evidences:

1. SPAN License Registration form on behalf Mohd Khairani Bin MD Midah from FGVPM 08 Aring dated 18 September 2017

to Suruhanjaya Perkhidmatan Air Negara (SPAN).

2. Sighted SPAN License Application from Mr Azhari Bin Ahmad, manager of Aring 10 to General Manager Wilayah Gua

Musang for Application of SPAN License dated 29th August 2017

3. FGVPM Aring 4 had received the SPAN license approval dated 25th September 2017 to Aring 04 Estate and the evidence

of application been approved by Mr Wan Ahmad Zulkhairi (executive licensing and tariff SPAN)

4. Sighted a feedback from SPAN to FGVPM Aring 05 to complete the application that had been send to SPAN dated 12

September 2017.

Auditor conclusions:

According to root cause, correction and corrective action. This nonconformance was closed.

Verified by : Ebnu & Trismadi N




NCR No. : 2017.2 Issued by : Sandra Purba


NC Grade : Major Date of Closing : 10 October 2017

Standard Ref. &

Requirement

: 4.7.2

All operations where health and safety is an issue shall be risk assessed, and procedures and

actions shall be documented and implemented to address the identified issues. All precautions

attached to products shall be properly observed and applied to the workers.

Non-Conformance Description & Evidence observed (filled by auditor):: The company has not able to show the evidence of entire established control plan (risk control) been implemented to reduce risk. Based on field observations and interview with workers in Aring 4 (Spraying : PR15J, Block 23 and harvesting : PM11 block 1), Aring

8 (spraying : block 15 PM 13 J, harvest : PM08E Block 4) and Aring 11 (spraying : ER16F block 10 and harvest in block1 PM 00C) found that the workers not use a standard shoes provided by management.


Field visit at FGVPM farm Aring 4, Aring 8 and Aring 11 shows no monitoring in use of PPE by workers before work.


1) Estate Management FGVPM Aring 4, Aring 8 and Aring 11 will provide a record of the procedure for the provision of PPE to

workers

2) Preparing PPE monitoring records in accordance with safety format (OHSAS 18001: 2007)

3) Provide a record of shoe deliveries to employees


Estate Management should briefly and make PPE checking periodically and show the PPE procedures or methods in the

workers' dormitory to be understood by all employees.


Verification on 29 Sept 2017.

FGVPM has submited the evidence of correction, namely:

- Aring 4 Minute of socialization and training regarding to the use of PPE by workers in Ladang Aring 04 on 19 Sept 2017,

completed with attendance list; company procedure on safe working in the document of “prosedur kerja selamat” document

no.: FGVPM/L3/PK-25 wich describing : PIC on SOP implementation and task description of supervisor on PPE use

monitoring, also described regarding to the type of PPE use based on risk and hazard of its work. Has been submiited the

evidence of PPE hand over to the workers of Aring 04 on Aug and Sept 2017, for e.g. hand over of safety shoes to as much

as 10 workers on 31 Aug 2017.

Verification on 10 Oct 2017 - Aring 8 Schedule of PPE monitoring of Aring 8 for period of 2017 in all activities (harvesting, manuring and spraying),

informs : type of PPE, program and realization; evidence of PPE hand over to workers of Aring 8 on 2-3 Oct 2017 for as

much as 20 persons, PPE type : apron, mask, gloves, safety googles, vest, safety shoes and respirator; evidence of PPE

hand over to workers of Aring 8 on 11, 13, 14, 17, and 18 Sept 2017 for as much as 28 persons. Also submitted the record

of monitoring of the use of PPE on 19 Sept 2017 evidence of socialization of PPE use to workers on 21 Sept 2017 (103

participant)

- Aring 11 Minute of socialization and training to as much as 67 workers related to PPE use in Aring 11 on 18 Sept 2017;

monitoring report of PPE use by workers in harvesting, spraying and fertilizing activity on 18 Sept 2017 and 24 Sept 2017,

the report informs: number of workers, type of PPE, number of worker who is not use PPE; evidence of PPE hand over to




workers which recorded in “buku rekod PPE Ladang Aring 11”, the latest is hand over of safety shoes to harvester as much

as 10 persons.

The entire correction evidence has been submitted, implementation corrective action to all estates in the certification scope will be re-verified on ASA-1. The non-conformity stated closed with observation.

Verified by : Sandar Purba

NCR No. : 2017.3 Issued by : Ebnu H Shawal

Date Issued : 14 September 2017 Time Limit : ASA-2

NC Grade : Minor Date of Closing :

Standard Ref. &

Requirement

: 4.6.10

Proper disposal of waste material, according to procedures that are fully understood by workers

and managers shall be demonstrated

Non-Conformance Description & Evidence observed (filled by auditor): The waste material has not been properly disposed of according to the procedures.

During the observation at FGVPM Aring 4 and Aring 8 sighted the evidence of non proper disposal waste including domestic

waste and scheduled waste.


Estate Management of Aring 4 and Aring 8 are less aware of the solid waste isolation program (3R).


1. Letter of appointment officer responsible for the management of waste in farm area 2. 3R Training Record and solid waste segregation. 3. Signboard pictures ban throw empty poisons waste at landfills


1) Plantation Management will carry out management training on waste disposal methods. 2) Provides an empty vane store collection store 3) Implementing and recording monitoring within the garbage disposal site 4) Record Sales of empty poisons to registered contractors (Copy of Permit) 5) Recorded triple rinse 6) Provide periodic domestic waste disposal schedule


FGVPM Aring 4, 8,

Sighted an evidence related to the appointment of each representative for the estate to become the personnel in charge

related to the waste disposal. There is also a training of waste segregation and 3R (Reduce, Reuse, Recycle) – method for the

estate. The company also had install the signboard of no open burning at the area and no contaminated container at the

landfill area.




Based on the verification document, the auditor is satisfied with the evidence and the Non Conformance is closed.

Verified by : Ebnu H Shawal

NCR No. : 2017.4 Issued by : Sandra Purba

Date Issued : 14 Sept 2017 Time Limit : ASA-1

NC Grade : Minor Date of Closing :

Standard Ref. &

Requirement

: 4.7.5

Accident and emergency procedures shall exist and instructions shall be clearly understood by

all workers. Accident procedures shall be available in the appropriate language of the workforce.

Assigned operatives trained in First Aid should be present in both field and other operations, and

first aid equipment shall be available at worksites. Records of all accidents shall be kept and

periodically reviewed.

Non-Conformance Description & Evidence observed (filled by auditor):: The company has set the standard of first aid box as much as 20 item, however based on field observation in Aring 4 (Spraying : PR15J, Block 23 and harvesting : PM11 block 1), Aring 8 (spraying : block 15 PM 13 J, harvest : PM08E Block 4) and Aring 11 (spraying : ER16F block 10 and harvest in block1 PM 00C) found that the first aid box brought by the foreman does not in accordance with the established standard.


Estate Management has no clear procedure for preparing a first aid kit for the office and on the farm.


1) Estate Management will provide the latest and updated first aid kit inventory record

2) Provide an image of a first aid box inventory

3) Provide pictures of first aid boxes

Appointing Officer is responsible for updating the first aid kit.

Provide justification for the quantity of tools that need to be available for emergency first aid boxes and which are carried by

the mandate by Safety Health Officer


Plantation management shall appoint a responsible officer to update the emergency first-aid kit on a need basis and provide

emergency first aid kit management procedures.


Verification on 29 and 30 Sept 2017

The root cause analysis, correction taken and corrective action has been accepted.

FGVPM has submitted the updated list of first aid equipment (16 item) and SOP of first aid on documen “prosedur kerja selamat

peti pertolongan cemas” document no.: FGVPM/L3/PK-48 issued on 11 Sept 2017, describes on determination of the number

of first aid box, description of first aider task, monitoring of first aid equipment, and completed with the checklist of first aid

monitoring.

Verification on 10 Oct 2017




The FGVPM has submitted the evidence of corrective action, namely:

- Document of first aider appoinment in Ladang Aring 8 (on behalf of Mohd Nor Hakimi Bin Hassan on 4 Oct 2017)

- Document which listing the first aid kit for Aring 8 and Aring 11 accompanied with the photos of first aid box that has been

completed according to the list.

However, has not yet submitted the evidence of :

- the result of the identification of all first aid kit and evidence that all first aid box (number of first aid box) that has been

adjusted to the list for Aring 4, 8 and 11.

- The appoinment letter for the first aider in Aring 4 and Aring 11 (number and location)

- Evidence of socialization to the first aider associated to the new list for Aring 4, 8 and 11

- Schedule of first aid monitoring for Aring 4, 8 and 11

The evidence of correction need to be completed with justification regarding to the change of first aid list and evidence of its

implementation to all units in the certification scope.

The effectiveness of corrective action on minor NC will be verified in annual surveillance.

Verified by : Sandra P

NCR No. : 2017.5 Issued by : Ebnu H Shawal


NC Grade : Major Date of Closing : 3 November 2017

Standard Ref. &

Requirement

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

Non-Conformance Description & Evidence observed (filled by auditor): The Scheduled waste has not been disposed of responsibly :

During the field visit, sighted the evidence of contaminated containers (lubricant oil and pesticides container) at old

hostel / shop area at FGVPM Aring 4.

During the field visit, there is contaminated container at water treatment plant and landfill area at FGVPM Aring 8

During site observation at Engine room FGVPM Aring 8 (PM00B) sighted the evidence of diesel and lubricant oil

spillage at the area. It’s found the lubricant oil and diesel has been directly discharged to the land.

Sighted the evidence of spent oil filter and pesticides container not being classified and stored as scheduled waste at

FGVPM Aring 11.

Based on the audit observation, the personnel in charge could not show the evidence of scheduled waste has been properly disposed. This is contradict with the Malaysian Environmental Quality Act 1974, Scheduled wastes Regulations 2005 which are :

1. SW 409 disposed containers, bags or equipment contaminated with chemicals, pesticides, mineral oil and

2. SW 408 contaminated soil, debris or matter resulting from cleaning-up of a spill of chemical, mineral oil


Estates Management has no monitoring and less awareness in managing waste.


1. Letter of appointment officer responsible for the management of waste in Estate area




2. Records of waste management training provided by the Trained Officer from CESWAMP plant

3. record disposal of used poison vials to registered contractors

4. Photo store collection of used poison tanks.

5. Records of receipt of waste in the factory


1) Estate Management will implement management training on waste disposal methods.

2) Prepare empty containers store for empty containers 3) Perform and record monitoring within the old dormitory building / shop building 4) Record empty vat sales to registered contractors (Copy of Permit) 5) Record of triple rinse


FGVPM Aring 11

Sighted the evidence of letter for the Spent filter to be send to schedule waste collector (15 Nos) filters dated 21st

September 2017

Sighted the evidence receipt of plastic container (135 kgs ) and 3 steel drums disposed to the recycler (Ahmad Scraps

Metal in Gua Musang Kelantan)

Sighted the contaminated container had been stored in scheduled waste store in Aring 11

The management unit had appointed a person in charge of handling the scheduled waste : Mr Mazlan Bin Abd Aziz to

identified and process the scheduled waste according to the regulation

The company held a talk regarding the triple rinsed product and punctured for recycling purposes. Sighted the attendance

list from the estate and 7 workers had attended

FGVPM Aring 8

Sighted the evidence of signboard at the landfill area that prohibit disposal of contaminated chemical, electronic item, scrap

iron and tire

The company had build a sump for oil spillage to cater the waste material

Empty container had been sold to the recycling collector (send to Ahmad Scrap Metal)

Sighted an evidence of the appointment of person (Mr Khairul Ridzwan) in charge related to the management of waste in

the estate

FGVPM Aring 4

Sighted evidence of signboard related to No Open Burning at the landfill area and do not disposed the contaminated

container at landfill area.

Sighted an evidence of the training related to the scheduled waste by MR Muhammad bin Abidin at Ladang Aring 4 (Roll

call Site) dated 14th September 2017

Sighted a letter of evidence to mill manager to dispose of 2 spent filter as Scheduled waste item.

Sighted a letter appointed Puan Ruszilawati as the person in charge of the scheduled waste at the estate and managed

the waste

Additional evidence Aring Complexes

Sighted the root cause analysis for NCR 5.3.2 which are the Management of Aring 8 less monitored the area and less

awareness of waste management in FGVPM Aring 8

Sighted Evidence of training scheduled waste management at Aring 8 complexes dated 8th October 2017 at FGVPM Aring

6 by Safety and Health Officer. Genset Room only in Aring 8 and other units are using electricity from the government.




Sighted evidence of Aring 8 Generator set room for oil sump trap had been built and the spillage area of the Genset room

has been removed and filled with sand/gravel.

Sighted the evidence of scheduled waste store and empty container store (punctured and triple rinsed) at Aring 10, Aring

8,Aring 15, Aring 6, Aring 5 and Aring 2

The management unit had send an evidence of Landfill area that no chemical container sighted in the area for Aring 2,

Aring 3, Aring 4, Aring 5, Aring 6, Aring 8, Aring 10, Aring 11, and Aring 15.

Auditor conclusions:

According to root cause, correction and corrective action. This nonconformance was closed.

Verified by : Ebnu H Shawal & Trismadi N




3.5.3 Opportunity for Improvement

No Ref Std Descriptions

1 2.1.1 Follow up the proses of electrical license for water treatment.

2 3.1.1 Consideration to evaluate the financial indicator (revenue/cost ratio) on long term business plan.

3 4.2.4 Consideration to increase the EFB application as nutrient recycling strategy.

4 4.7.1 Evaluation of OSH policy and plan implementation

5 5.3.3 Waste segregation at the estate shall be implemented

6 6.5.2 Consideration for the company to write the employment contract of Indian and Bangladeshi in

bilingual (english and origin country)

7 6.12.1 Record and documentation of employees interview process in the origin country

3.5.4 Noteworthy Positive Components

No Descriptions

1 Good commitment from management to implement the sustainability in FGVP(M).

2 Well coordination between management unit and supporting staff.

3 The mill has been certified ISO 9001, ISO 14001 and ISO 18001.

4 Commitment from FGVP(M) to provide adequate facilities e.g. clinic, housing complex, clean water, electricity, and groceries.




3.6 Summary of Arising Issues from Public and Auditor Verification

Issue from Public Auditor Response

Auxilliary Police

The policeman thanks the Felda Management to support the

security around Felda Aring. The Sergeant Major had 104

staff for the whole Felda day and night shift. As per interview,

there is no major cases or crime reported in the estate. The

police will record the lorry or trucks that pass through the

estate. Minor cases likes loose fruit being stolen had been

solved appropriately according to the law. Overall , good

feedback from auxiliary police management and handful

cooperation from FGV management.

The company thanks the compliment from the police

representative. The company will continue to give full support

and cooperation towards the company security .

FGV Contractor

The respondent had thanked FGV for the opportunity given

regarding the contract of transporting FFB to the mill. The

contractor also had few contracts regarding machines,

tractor and backhoe operation. The payment from FGV also

appropriate and timely as the contract payment will be done

less than 3 months after the work completed. There is also

feedback form the contractor that FGV helps the local

contractor to work with them and raise up the economic

living of local people.

The company will give a full cooperation to the contractors in

FGV Aring and will adhere the company policy.

Workers representative

The workers represantive (Mandore) had been 5 years

working with FGV. Based on the feedback, he is happy with

the management and had no problem with the workers and

management staff. The company is really importance the

workers safety and had inform the workers everyday

regarding it. The representative also aware the latest

announcement regarding policy company from the

management and been informed by the assistant manager.

The company will continue to keep the welfare of the workers

and appreciate the effort of workers in the company

Gender Committee

The respondent thanks the management giving a full

support and cooperation for the women workers and staff at

the estate. They form a club name ‘Kelab Daya Bumi’ and

been actively involved in the activity within the estate

including cleaning up the area, sports day and meeting with

other gender committee at Gua Musang region. The

The company will continue to provide the contribution to the

women at the estate and followed the company policy of human

and gender equality.




Issue from Public Auditor Response

respondent had given a good feedback especially related to

the bus service and school bus for the kids provided

everyday. The cooperation between FGV management and

staff also been very good and supportive coinherent with

company policy.

shops owner

The shops owner just operated in the estate Aring 4 for 4

months. Overall is good and have a good cooperation with

managememnt. The shop’s owner bought the groceries form

nearby shop at Felda chiku (15km form Aring 4)

The company will continue to provide the local community

opportunity to have business inside the FGV Estate

There was no feed-back received from NGO. No issues raised







APPENDICES

No Institution/NGO/Community Address Phone/Email Form of

Communication Date of Contact

Response

Yes No

1 Auxilliary Police Kelantan - Interview 11 Sept

2017 √

2 FGV Contractor Kelantan - Interview 11 Sept

2017 √

3 Gender Committee Kelantan - Interview 11 Sept

2017 √

4 Shops owner Kelantan - Interview 11 Sept

2017 √

5 Worker Union Kelantan - Interview 10 Sept

2017 √

6 Malaysian Nature Society (MNS)

Kuala Lumpur Email 6 Sept 2017

√

7 UNION – AMESU Malaysia Email 6 Sept 2017

√

8 Centre for Environment, Technology and Development Malaysia – CETDEM

Malaysia Email

6 Sept 2017 √

9 National Council of Welfare & Social Development Malaysia – NCWSDM

Malaysia Email

6 Sept 2017 √

10

Aring A POM

2 felsco/auxiliary police

6 grading workers

1 dispatch operator

1 engine room operator

1 boiler operator

1 welder

1 WWTP operator

1 worker in WTP

4 workers in workshop

Kelantan - Interview 10 Sept

2017 √

11

Aring 4 Estate

8 harvesters

2 pesticide operators

4 manuring workers

1 supervisor in nursery

2 workers in WTP

4 workers in Housing Area

1 store clark

1 worker in workshop


2017 √

12

Aring 8 Estate

3 harvesters


1 engine room operator

1 WTP operator


2017 √

Appendix 1. List of Stakeholder Contacted in the RSPO Certification Process




1 Qorkshop foreman

1 store clark

3 workers in Housing complex

13

Aring 11 Estate

8 harvesters


1 store keeper

1 store clark

3 WTP operators 1 chemical storage


2017 √




DATE Saturday to Thursday, 9 – 14 September 2017

PLANNED TIME

PROCESSES / CLAUSES TO BE AUDITED AUDITOR

Sabtu/Saturday, 9 September 2017

09.55 – 13.00 13.00 - 17.00

JAKARTA KUALA LUMPUR (GA 820) KUALA LUMPUR ARING.A

TNB/ARD/SNP

ALL TEAM

Ahad / Sunday, 10 September 2017

08.00 - 08.30

08.30 - 13.00

Opening Meeting ARING Mill (Brief Introduction, Audit scope confirmation, Standards Use, Audit Objectives, Transparency and Confidentiality Clarification and Audit Agenda Explanation) Document Audit and Field visit to ARING PALM OIL MILL

Supply Chain verification (FFB Receiving, Weighbridge, FFB Sorting, Processing Activity, Despatch CPO);

Occupational Health & Safety Aspect (Inspection to Chemical Storage, Hazardous Waste Storage, Fire Control Simulation, POME Pond & Land Application of POME)

Interview & FGD with Worker’s Union, Gender Committee, Local Contractor, All Local Communities.

ALL TEAM

ARD

SNP

TNB/EHS

13.00 – 14.00 BREAK ALL TEAM

14.00 – 17.00 Document Review ARING MILL

Document Verification & Completion of Check List in Mill ALL TEAM

Isnin / Monday, 11 September 2017

08.00 - 13.00

Document Audit and Field Visit to FGVP ARING 4

Agronomy (Harvesting & Transportation, Manuring, Pesticides Application, Road Maintenance, Biological Control Monitoring, EFB Application, Peat Area (Water management, etc); Environmental, Occupational Health & Safety Aspect (PPE Used in Harvest, Manure & Pesticide Application) and Worker Welfare.

Legal Demarcation Aspect (Inspection of Legal Boundary Stones, Community Buffer Area/Enclave), Conservation Aspect (Inspection of HCV Identified Area, Riparian/Waterways Zone, Reservoir, Forest Area)

Worker’s Facilities Aspect (Housing, Daycare, Sports Facilities, Employees Meeting Hall, Sanitary Facilities) & (Inspection to Chemical Storage, Fertilizer Storage, Hazardous Waste Storage, Fire Control Facilities, Waste Management)

Interview&FGD with Worker’s Union, Gender Committee, Local Contractor, All Local Communities.

TNB

ARD

SNP

EHS

13.00 – 14.00 BREAK

14.00 – 17.00 Document Review FGVP ARING 4


Appendix 2. Assessment Program





PLANNED TIME


Selasa/Tuesday, 12 September 2017

08.00 - 13.00


Agronomy (Harvesting & Transportation, Manuring, Pesticides Application, Road Maintenance, Biological Control Monitoring, EFB Application, Peat Area (Water management, etc); Environmental, Occupational Health & Safety Aspect (PPE Used in Harvest, Manure & Pesticide Application) and Worker Welfare.




TNB

ARD

EHS/SNP

EHS/SNP




Rabu/Wednesday, 13 September 2017

08.00 - 13.00


Agronomy (Harvesting & Transportation, Manuring, Pesticides Application, Road Maintenance, Biological Control Monitoring, EFB Application, Peat Area (Water management, etc); Environmental, Occupational Health & Safety Aspect (PPE Used in Harvest, Manure & Pesticide Application) and Worker Welfare;




TNB

ARD

EHS/SNP

EHS/SNP




Khamis / Thursday, 14 September 2017





PLANNED TIME


08.00 - 10.00 11.00 – 15.00 19.00 -21.00

CLOSING MEETING ARING.A KUALA LUMPUR KUALA LUMPUR JAKARTA (GA 817)

ALL TEAM

ALL TEAM

TNB/ARD/SNP

ASSESSMENT REPORT Roundtable on Sustainable ... - RSPO

Documents