SIME DARBY PLANTATION SDN BHD - RSPO€¦ · estates owned by Sime Darby Plantation Sdn Bhd (SDPSB) 1.2 Location (address, GPS and map) of palm oil mill and estates SOU 21 Gunung

SIME DARBY PLANTATION SDN BHD RSPO Membership No: 1-0008-04-000-00

PLANTATION MANAGEMENT UNIT SOU 21 Gunung Mas Grouping Kluang, Paloh & Yong Peng, Johor, Malaysia

INTERTEK CERTIFICATION INTERNATIONAL SDN BHD (188296-W)

Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope

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Intertek RSPO Report: April 2014

ANNUAL SURVEILLANCE ASSESSMENT (ASA-04) CUM EXTENSION OF SCOPE ON RSPO CERTIFICATION

ASSESSMENT REPORT

SIME DARBY PLANTATION SDN BHD

RSPO Membership No: 1-0008-04-000-00

PLANTATION MANAGEMENT UNIT SOU 21 Gunung Mas Grouping

Kluang, Paloh & Yong Peng, Johor, Malaysia

Certificate No: RSPO 901888 Issued date: 19 May 2010 Expiry date: 18 May 2015 Assessment Type Assessment Dates Initial Certification (Main Assessment) 18 – 20 Feb 2009 Annual Surveillance Assessment (ASA-01) 16 – 18 Feb 2011 Annual Surveillance Assessment (ASA-02) 03 – 06 April 2012 Annual Surveillance Assessment (ASA-03) 18 – 22 Feb 2013 Annual Surveillance Assessment (ASA-04) cum Extension of Scope

11 – 14 March 2014

Re-Certification

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

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

Website: www.intertek.com



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TABLE OF CONTENTS

Section Content Page No

1.0 SCOPE OF ANNUAL SURVEILLANCE ASSESSMENT (ASA-04) CUM EXTENSION OF SCOPE

1.1 Introduction 4

1.2 Location (address, GPS and map) mill, estates and hectarage 4

1.3 Description of supply base (fruit sources) 5

1.4 Year of plantings and cycle 5

1.5 Summary of Land Use – Conservation and HCV Areas 6

1.6 Other certifications held and Use of RSPO Trademarks 6

1.7 Organizational information/contact person 6

1.8 Tonnages Verified for Certification 7-8

1.9 Time Bound Plan 8

1.10 Abbreviations Used 9

2.0 ASSESSMENT PROCESS

2.1 Assessment Methodology, Plan & Site Visits 10

2.2 Date of next scheduled visit 10

2.3 Qualifications of the Lead Assessor and Assessment Team 10

2.4 Certification Body 10-11

2.5 Process of Stakeholder consultation 11-12

3.0 ASSESSMENT FINDINGS

3.1 Summary of findings 13-43

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

43-45

3.3 Summary of Feedback Received from Stakeholders and Findings 46-47

4.0 ASSESSMENT CONCLUSION AND RECOMMENDATION

4.1 Acknowledgement of Internal Responsibility and Confirmation of Assessment Findings 47

4.2 Intertek RSPO Certification Details for SOU 21 Gunung Mas grouping 48-49

APPENDICES Appendix Page

Appendix A Qualifications of the Lead Assessor and Assessment Team 1

Appendix B Assessment Plan 2-3

Appendix C Maps of location – Mill, Estates, Conservation and HCV areas 4-8

Appendix D Photographs of Assessment findings at SOU 21 Gunung Mas Grouping 9

Appendix E Time Bound Plan for Other Plantation Management Units 10-11



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1.0 SCOPE OF ANNUAL SURVEILLANCE ASSESSMENT (ASA-04) CUM EXTENSION OF SCOPE

1.1 Introduction

This Annual Surveillance Assessment (ASA-04) cum Extension of Scope was conducted on the Plantation Management Unit (PMU) SOU 21 Gunung Mas grouping of Sime Darby Plantation Sdn Bhd (hereafter abbreviated as SDPSB), from 11 – 14 March 2014, to assess if the organization’s operations of the mill and its supply bases were in compliance against the RSPO Principles and Criteria (April 2013), Malaysian National Interpretation (November 2010) and the RSPO Supply Chain Certification Standard (November 2011) for Palm Oil Mill. This assessment also includes a review of the changes made by the PMU to comply with the requirements of the ratified new RSPO Principles and Criteria (effective 25 April 2013). It was found that the PMU is aware of the new RSPO Principles and Criteria and the transition period for compliance but has not yet make the necessary changes required. The Extension of Scope is for the purpose of adding the Yong Peng Estate as part of of this PMU. This estate was certified by BSI under the PMU SOU 19A of Sime Darby Plantation Sdn Bhd. The plantation management unit (PMU) or management unit is equivalent to a certification unit as defined in the RSPO Certification Systems Document. Each PMU consists of one mill and its supply bases which are made up of estates owned by Sime Darby Plantation Sdn Bhd (SDPSB) 1.2 Location (address, GPS and map) of palm oil mill and estates

SOU 21 Gunung Mas grouping consists of one (1) palm oil mill, namely SOU 21 Gunung Mas Palm Oil Mill and four (4) estates as indicated in Table 1 below, which includes the addresses and GPS locations of the mill and estates. The location maps are provided in Appendix C.

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

GPS Reference Name Address

Latitude Longitude

Gunung Mas Palm Oil Mill

(POM capacity: 60mt/hr) KKS Gunung Mas, K/B No. 524, 86009 Kluang, Johor, West Malaysia.

2.344º N 103.138º E

Gunung Mas Estate

(to be assessed in Re-certification Assessment)

Ladang Gunung Mas, K/B No. 512, 86009 Kluang, Johor, West Malaysia.

2.248º N 103.149º E

Kempas Klebang Estate (assessed in ASA-04)

Ladang Kempas Klebang, K/B No 105, 86009 Paloh, Johor, West Malaysia.

2.218º N 103.172º E

Bukit Paloh Estate

(to be assessed in Re-certification Assessment)

Ladang Bukit Paloh, K/B No 107, 86009 Paloh, Johor, West Malaysia.

2.140º N 103.175º E

Yong Peng Estate

(assessed in ASA-04)

Ladang Yong Peng, 83700 Yong Peng, Johor, West Malaysia.

2.085º N 103.143º E



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1.3 Description of supply base (fruit sources)

The supply base, i.e. FFB sources to the POM at SOU 21 Gunung Mas Grouping are from the abovementioned four estates and other certified estates of Sime Darby Plantation Sdn Bhd. POM further confirmed that for period FY2013-2014, the PMU has not taken any FFB crop from outgrowers / independent suppliers / smallholders.

Details of the planted hectarage for the FFB supply for SOU 21 Gunung Mas grouping are as shown in Table 2 below.

Table 2: Estate Area Summary – 2013 / 2014

Area Summary (ha) – 2013 / 2014 Estate

Certified Area Planted Area

Gunung Mas Palm Oil Mill

Gunung Mas Estate 3,472.70 2,981.88

Kempas Klebang Estate 2,473.50 2,205.83

Bukit Paloh Estate 3,082.83 2,828.66

Yong Peng Estate 3,381.23 3,127.59

Total: 12,410.26 11,143.96

Percentage: 100% 89.80%

Notes:

1. This Annual Surveillance Assessment (ASA-04) cum Extension of Scope covered the overall land use for oil palm plantation areas, and the identified Conservation areas including HCV areas marked out at the estates.

2. The estates sampled for this Annual Surveillance Assessment (ASA-04) cum Extension of Scope have been selected based on their potential risks on social, environmental and biodiversity issues such as their proximity to forest reserves, hill sides, riparian zones and high conservation value areas.

3. Yong Peng Estate is now included as part of this PMU. This estate was previously certified by BSI under SOU19A – 28 October 2010.

1.4 Summary of plantings and cycle

The 4 estates been developed beginning from 1987 and the latest being from 2012 (Re-planting) and are all currently in the 1st and 2nd cycle of planting for the Oil Palms. The age profile is as shown in Table 3.

Table 3: Age Profile of Planted Oil Palm 2013 / 2014

Estate Name Year of Planting Cycle of Planting Mature OP (ha) – Above 3 years

Immature OP (ha) – 3 years & below

Gunung Mas Estate 2009 – 2012

1987 - 2008 2nd cycle 1st cycle

2,677.14 304.74

Kempas Klebang Estate 2012

1991-2005

2nd cycle

1st cycle 2,130.91 74.92

Bukit Paloh Estate 2009 – 2012

1987 - 2008

2nd cycle

1st cycle 2,601.13

227.53

Yong Peng Estate 1993-2008 2nd cycle 2,823.97 303.62

Total 10,233.15 910.81

Note: There is no New Planting in any of the 4 estates of the certified areas since 1987.



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1.5 Summary of Conservation and HCV Areas

The summary of Conservation and HCV Areas as identified in SOU 21 Gunung Mas grouping during this Annual Surveillance Assessment (ASA-04) cum Extension of Scope in 2014 is as shown in Table 4 below:

Table 4: Conservation and HCV Areas

# Statement of Land Use (Ha) 2012 / 2013

(Annual Surveillance Assessment ASA-03)

Hectarage – Ha

2013 / 2014

(Annual Surveillance Assessment ASA-04)

Hectarage – Ha

1 Planted Area (ha) – Oil Palm

• Mature 7,373.51 10,233.15

• Immature 642.86 910.81

2 Conservation Area (ha)

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

58.66 58.66

3 HCV Area (ha)

• comprising buffer zones near forest reserves, water catchments, burial & religious sites

70.45 70.45

1.6 Other certifications held and Use of RSPO Trademarks

There are currently no other certifications held by SDPSB -SOU 21 Gunung Mas grouping PMU. The RSPO’s trademarks and logo are not being used by the PMU audited. Instructions for use were provided and acknowledged by the PMU through a signed Memorandum of commitment agreeing to adhere to the latest “RSPO Rules on Communications & Claims”. 1.7 Organizational information / Contact Person At Head Office: Ms Sabrinah binti Marzuky Vice President II – Certification and Compliance Unit Sime Darby Plantation Sdn Bhd Wisma Guthrie, 21, Jalan Gelenggang, Bukit Damansara, 50490 Kuala Lumpur, Malaysia Tel: 03-78484000 Fax: 03-78484356 Email: [email protected]

Name: Abdullah Bin Saminan Senior Manager Ladang Gunung Mas, K/B No. 512, 86009 Kluang, Johor, West Malaysia Tel: 07 9341207 Fax: 07 9342427 Email: [email protected]



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1.8 Tonnages Verified for Certification

The breakdown of all the suppliers and their tonnages of FFB supplied to the POM at SOU 21 Gunung Mas grouping based on the reporting period for 2013 / 2014 (July 2013-Feb 2014, actual and Mar 2014 – June 2014, projected) are as follows:

# Estate /Supplier FFB Processed

(MT) Main Receiving Mill Certified By

1. Gunung Mas Estate 61,897.26 Gunung Mas Palm

Oil Mill Intertek ( 19 May 2010)

2. Kempas Klebang Estate 52,217.31 Gunung Mas Palm


3. Bukit Paloh Estate 67,246.00 Gunung Mas Palm


4. Yong Peng Estate 61,853.05 Gunung Mas Palm

Oil Mill Previously by BSI under SOU19A – 28

October 2010

Sub-total PMU own estates

243,213.62

5. Simpang Kiri Estate 89.73 Chaah Palm Oil Mill BSI (18 November 2011)

6. Lambak Estate

2,558.40 Bukit Benut Palm

Oil Mill

CUC (05 October 2011)

7. Bukit Benut Estate

959.58 Bukit Benut Palm

Oil Mill

CUC (05 October 2011)

8. Sg. Gemas Estate

156.62 Kok Foh Palm Oil

Mill

Intertek (7 July 2012)

9. Senarut Estate

102.17 Kok Foh Palm Oil

Mill

Intertek( 7 July 2012)

10. Sg. Labis & Sg Labis Utara Estate

39,637.76 Chaah Palm Oil Mill

BSI (18 November 2011)

11. CEP Nyior Estate 29,306.96 Bukit Benut Palm

Oil Mill CUC (05 October 2011)

12. Muar River Estate 359.69 Kok Foh Palm Oil

Mill Intertek (7 July 2012)

13. Chaah Estate 516.32 Chaah Palm Oil Mill BSI (18 November 2011)

Sub-total other

certified Sime Darby estates

73,687.20

Grand total 316,900.82



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Total annual volumes / tonnages of FFB supplied from the supply base to SOU 21 Gunung Mas grouping POM during the previous period, current Annual Surveillance Assessment (ASA-04) cum Extension of Scope period and projected period are as follows:

Estate / Supplier FFB Processed in

2012 / 2013

FFB Processed in

2013 / 2014

- Actual + Projected

FFB Processed for

2014 / 2015

- Projected

MT % MT % MT %

SOU 21 Gunung Mas grouping

191,346.26 66.71 *243,213.62 76.75 *267,703.77 80.26

Other certified Sime Darby estates

95,507.84 33.29 73,687.20 23.25 65,834.88 19.74

Other Suppliers (OCP) 0.00 0.00 0.00 0.00 0.00 0.00

Total 286,854.10 100 316,900.82 100 333,538.65 100

SCCS Model for POM SG SG SG

*Note: This figures include Yong Peng which is now under the SOU 21 Gunung Mas grouping FFB Processed in 2013 / 2014- Actual + Projected and projected figures for 2014 / 2015

The annual certifiable tonnages of CPO and PK production by SOU 21 Gunung Mas grouping from the supply base/suppliers as assessed and verified during the current Annual Surveillance Assessment (ASA-04) cum Extension of Scope (based on 2013 / 2014 data) are detailed as follows:

POM 2012 / 2013 2013 / 2014


2014 / 2015

- Projected

Total FFB Processed (MT)

286,854.10 316,900.82 333,538.65

Total CPO Production (MT)

63,308.70 OER: 22.07%

71,302.68 OER:

22.50% 75,046.20

OER: 22.50%

Total PK Production (MT)

15,776.98 KER: 5.50%

17,429.55 KER:

5.50% 18,344.63

KER: 5.50%

Note: Currently, the POM has established and maintained procedures for the book keeping and monitoring requirements for the CPO at the mill and was verified to be adopting the ‘Segregation – SG’ model in accordance with the RSPO Supply Chain Certification Standard (SCCS) requirements. Verified activities and checked items for the SCCS of the POM are reported in section.3.1.1. 1.9 Time Bound Plan for Other Plantation Management Units

SDPSB Group operates 59 palm oil mills and 200 oil palm estates and schemes throughout Malaysia & Indonesia (as per updated on 21 March 2014). The organization is a member of RSPO since 8th September 2004 and has been taking an active role in the RSPO certification. Currently, a significant number of its Certification Units is undergoing the RSPO certifying process in accordance with its time bound plan and has completed RSPO certification for all SOU’s. Based on the due diligence conducted on Sime Darby Plantation Sdn Bhd there were no significant land conflicts, no replacement of primary forest or any area containing HCVs since November 2005, no labour disputes that are not being resolved through an agreed process, no evidence of non-compliance with law in any of the non-certified holdings. (Source: http://www.simedarbyplantation.com/Sime_Darby_Plantation_in_Malaysia.aspx). Details of the time bound plan as submitted by SDPSB are as per Appendix E.



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1.10 Abbreviations Used

CB Certification Body LTA Lost Time Accidents

CHRA Chemical Health & Risk Assessment Intertek Intertek Certification International Sdn Bhd

CPO Crude Palm Oil MSDS Material Safety Data Sheets

CSDS Chemical Safety Data Sheets MTCS Malaysia Timber Certification Scheme

CSPO Certified Sustainable Palm Oil NCR Non-Conformance Report

CSPK Certified Sustainable Palm Kernel NGO Non-Government Organization

EFB Empty Fruit Bunch OER Oil Extraction Rate

EHS Environmental Health & Safety OHS Occupational Health & Safety

EIA Environmental Impact Assessment PEFC Programme for the Endorsement of Forest Certification

ETP Effluent Treatment Plant PK Palm Kernel

FFB Fresh Fruit Bunch PMU Plantation Management Unit

GAP Good Agriculture Practice POM Palm Oil Mill

HCV High Conservation Values POME Palm Oil Mill Effluent

IPM Integrated Pest Management PPE Personal Protective Equipment

ISCC International Sustainability & Carbon Certification SCCS Supply Chain Certification Standard

IUCN International Union for Conservation of Nature SDPSB Sime Darby Plantation Sdn Bhd

KER Kernel Extraction Rate SOP Standard Operating Procedures



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2.0 ASSESSMENT PROCESS 2.1 Assessment Methodology, Plan and Site Visits Since 29 January 2014, Intertek has initiated public communications and notifications and invited the relevant stakeholders before the assessment to provide feedback and comments on their concern (if any) on SOU 21 Gunung Mas grouping regarding the environmental, biodiversity, community development and other relevant issues. From 11 – 14 March 2014, the Assessment team of Intertek conducted the Annual Surveillance Assessment (ASA-04) cum Extension of Scope in which 2 out of the 4 estates of SOU 21 Gunung Mas grouping namely Kempas Klebang estate and Yong Peng as well as the palm oil mill were assessed for compliance against the RSPO requirements. The number of estates sampled was based on a minimum sample of 0.8√y where y is the number of management sub-units and the selection was made based on their potential risks on social, environmental and biodiversity issues such as their proximity to forest reserves, hill sides, riparian zones and high conservation value areas. During the on-site assessment, relevant documents and records, including Standard Operating Procedures (SOP), management plans, hectarage development, FFB, CPO and PK production, oil palm age profile, operational controls and measures, operational data and records, training records, etc. were reviewed and verified for compliance. The Assessment team using the process approach auditing technique covered the palm oil mill and estate operations, agricultural practices, pest management, pesticide and fertilizer application, occupational health and safety, social accountability, environment and other requirements. Stakeholders’ interviews were conducted during the assessment and feedback obtained as part of information and evidence gathering. (See section 2.5 Process of stakeholder consultation). SOU 21 Gunung Mas grouping POM was also assessed against the requirements for the Segregation Module as specified in RSPO Supply Chain Certification Standard for CPO mill. This part of the assessment covered the verification of implementation of documented procedures and availability of records to demonstrate compliance against all the elements for Segregation requirements. These include documented procedure, purchasing and goods in, record keeping, sales and goods out, processing, monitoring and traceability of the CSPO and CSPK quantities, training for staff and claims. After completion of the on-site field assessment, Intertek also performed the evaluation of conformity against the RSPO Certification System requirements for CB. The assessment report, findings and associated documents were evaluated through an independent review by the Intertek Internal Evaluation Panel prior to submission of the Assessment Report to RSPO Secretariat for approval. The details of the Assessment Plan (actual on-site) are provided in Appendix B. 2.2 Date of next scheduled visit The next scheduled visit will be the Re-Certification Assessment which will be carried out within a 9 to 12-months period after RSPO acceptance of this report and before the expiry of the certificate. 2.3 Qualifications of the Lead Assessor and Assessment Team Competency details of the Lead Assessor and Assessment Team are given in Appendix A. 2.4 Certification Body Intertek Certification International Sdn Bhd [formerly known as Moody International Certification (Malaysia) Sdn Bhd] is part of the Intertek Group, which is a worldwide technical services organization dedicated to reducing clients' risks by providing technical inspection services, management system certification in quality, environmental,



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occupational safety & health and product certification, RSPO SCC, ISCC, Marine Sustainability Chain-of-Custody, MTCS and PEFC Chain-of Custody certification in applicable industry sectors including the agricultural and forestry sectors. Intertek operates globally providing clients with a wide-ranging technical inspection expertise and access to thousands of skilled specialists worldwide. Intertek Group’s certification business is ranked in the top 10 worldwide, and is available globally offering certification across a wide range of industries. 2.5 Process of stakeholder consultation

Stakeholder consultations began with notification of the upcoming assessment through the websites of RSPO, SDPSB and Intertek. E-mails, facsimiles and letters of the same were sent to applicable stakeholders including government agencies, NGOs and local communities. Telephone enquiries were made prior to the actual assessment and stakeholder’s response and feedback received were followed up accordingly.

During the assessment, stakeholders were interviewed and their feedbacks were recorded. Among the stakeholders consulted were workers, trade union leaders, women representatives; local community leaders, representatives of government departments / agencies and NGOs; external FFB suppliers, fertilizer suppliers and contractors. Details on stakeholders’ feedback, PMU response and Intertek verification / comments are provided in section 3.3. Among the list of key stakeholders consulted was the following: Government Agencies (by emails) 1. Department of Lands And Mines (Kuala Lumpur) 10. Department of Environment (Johor) 2. Department of Environment (Kuala Lumpur) 11. Department of Forestry (Johor) 3. Department of Forestry Peninsular Malaysia

(Kuala Lumpur) 12. Department of Immigration (Johor)

4. Department of Immigration (Kuala Lumpur) 13. Department of Irrigation & Drainage (Johor) 5. Department of Irrigation & Drainage (Kuala

Lumpur) 14. Department of Labour (Johor)

6. Department of Labour (Kuala Lumpur) 15. Department of Occupational Safety & Health (Johor) 7. Department of Occupational Safety & Health

(Kuala Lumpur) 16. Department of Wildlife & National Parks (Johor)

8. Department of Orang Asli Affairs (Kuala Lumpur) 17. Land and Mines Office (Johor) 9. Department of Wildlife & National Parks 18. Pertubuhan Keselamatan Sosial (SOCSO) (Johor) 19. Pejabat Buruh (Johor) Statutory Bodies (by emails)

20. Malaysian Palm Oil Board (MPOB) 25. Malaysian Palm Oil Board (MPOB) - Sarawak

Region 21. Malaysian Palm Oil Board (MPOB) - Northern

Region 26. Malaysian Palm Oil Board (MPOB) - Sabah Region

22. Malaysian Palm Oil Board (MPOB) - Central Region

27. Malaysia Palm Oil Association (MPOA)

23. Malaysian Palm Oil Board (MPOB) - Southern Region

28. Malaysia Palm Oil Association Kuala Lumpur (MPOA)

24. Malaysian Palm Oil Board (MPOB) - Eastern Region

29. Malaysia Palm Oil Association Sabah (MPOA)

NGOs (by emails) 30. All Women’s Action Society (AWAM) 60. Malaysian Nature Society Miri 31. BCSDM - Business Council for Sustainable

Development in Malaysia 61. Malaysian Nature Society Pahang

32. Borneo Child Aid Society (Humana) 62. Malaysian Nature Society Perak 33. Borneo Resources Institute Malaysia (BRIMAS) 63. Malaysian Nature Society Pulau Pinang 34. Borneo Rhino Alliance (BORA) 64. Malaysian Nature Society Sabah 35. Center for Orang Asli Concerns COAC 65. Malaysian Nature Society Terengganu 36. Centre for Environment, Technology and

Development, Malaysia - CETDEM 66. Malaysian Plant Protection Society (MAPPS)

37. Consumers Association Of Penang - CAP 67. Mountaineering and Outdoor Pursuits Association of



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Negeri Sembilan

38. EcoKnights 68. National Council of Welfare & Social Development

Malaysia - NCWSDM 39. Environmental Management and Research

Association of Malaysia (ENSEARCH) 69. Sabah Wetlands Conservation Society (SWCS)

40. Environmental Protection Society Malaysia (EPSM)

70. SEPA - Sabah Environmental Protection Association

41. Friends of the Earth, Malaysia 71. SUARAM - Suara Rakyat Malaysia

42. Future in Our Hands Society, Malaysia 72. SUHAKAM - National Human Rights Society -

Persatuan Kebangsaan Hak Asasi Manusia

43. Global Environment Centre 73. Sustainable Development Network Malaysia

(SUSDEN) 44. HUTAN - Kinabatangan Orang-utan Conservation

Programme 74. Tenaganita Sdn Bhd

45. Institute of Foresters, Malaysia (IRIM) 75. The Malaysian Forum of Environmental Journalist

(MFEJ)

46. JUST - International Movement for a Just World 76. TRAFFIC Southeast Asia - Wildlife trade &

trafficking monitoring programme 47. Malaysian Environmental NGOs - MENGO 77. Transparency International - Malaysian Chapter 48. Malaysian National Animal Welfare Foundation -

MNAWF 78. Treat Every Environment Special Sdn Bhd. (TrEES)

49. Malaysian Nature Society (MNS) Kuala Lumpur 79. United Nations Development Programme - UNDP

Malaysia 50. Malaysian Nature Society Johor 80. Water Watch Penang (WWP) 51. Malaysian Nature Society Kedah 81. Wetlands International (Malaysia) 52. Malaysian Nature Society Kelantan 82. Wild Asia Sdn Bhd 53. Malaysian Nature Society Kuching 83. World Wide Fund for Nature (WWF) Malaysia 54. Malaysian Nature Society Melaka/Negeri

Sembilan 84. World Wide Fund of Nature (WWF) Sabah

55. National Union of Plantation Workers (NUPW) 85. UNION – AMESU

56. Partners of Community Organisations (PACOS) 86. Malaysian CropLife & Public Health Association

(MCPA) 57. Penang Institute previously known as Socio-

Economic & Environmental Research Institute (SERI)

87. Pesticide Action Network Asia and the Pacific (PAN AP)

58. Proforest - South East Asia Regional Office 88. ENO Asia Environment 59. R.E.A.C.H. - Regional Environmental Awareness

Cameron Highlands

Local community (On-site interviews) Gender representatives Suppliers / Contractors Workers representatives Village Heads



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3.0 ASSESSMENT FINDINGS 3.1 Summary of findings

Principle 1: Commitment to transparency

Criterion 1.1

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

Indicators Findings and Objective Evidence Compliance

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

Major Compliance

Documented SOPs Appendix 5 –Handling Social Issues and SOP Appendix 5.5.3.2 Procedure for External Communication for providing feedback and handling queries, responses and requests have been maintained at SOU21. Records of meetings and correspondences with stakeholders have also been maintained for FY Jul 2013-Jun 2014. The mill and estate management have responded effectively and constructively to requests/queries from their stakeholders. This was apparent from records sighted which included minutes of meetings held with the local authorities, union committees and local community leaders. The latest stakeholder meeting was dated 17 Feb 2014 and records of requests and responses have been suitably maintained.

Complied

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

Major / Minor - TBF

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

Stakeholders meeting held on 17 Feb 2014 with records of stakeholders’ feedback. Stakeholders’ requests were attended to and no negative remarks or complaints/ grievances were found.

Complied

Criterion 1.2

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


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

Major Compliance

• Land titles/user rights (Criterion 2.2);

SDPSB’s policies were effectively displayed on notice boards and at accessible locations at the SOU21 Mill and Estates’ offices. The locations include the Mill and Estate offices, the Mill Plant areas as well as certain locations at the exterior of the Mill and Estate offices. Policies are available in English and Bahasa Malaysia. All the mandatory types of documents were available both in hard and soft copy. These have been maintained and adequately updated at the company’s website.

The following types of mandatory documents are available to the public as required:

Complied



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• land titles/user rights,

• occupational health and safety plan,

• plans and impact assessments relating to environment and social impacts,

• pollution prevention plans,

• details of complaints & grievances,

• negotiation procedures

• continuous improvement plan

Land titles/user rights have been maintained adequately. No outstanding issues have arisen since the previous audit.

• Occupational health and safety plans (Criterion 4.7);

Environment, Safety and Health (ESH) Plan have been established and implemented for

FY Jul 2013 - Jun 2014. See C 4.7

Complied

• Plans and impact assessments relating to environmental and social impacts

(Criteria 5.1, 6.1, 7.1 and 7.8);

Management plans for social and environmental impacts assessment have been established and implemented for FY Jul 2013-Jun 2014. These plans have been monitored and action plans have been maintained by the respective Mill /Estate Managers as well as the Social and Environment Officers at the respective Estates /Mills at SOU 21..

Complied

• HCV documentation (Criteria 5.2 and 7.3);

HCV Management Action Plans found to be reviewed and updated by SDPSB Sustainability Team in 2014.

Complied

• Pollution prevention and reduction plans (Criterion 5.6);

Management plans for Pollution prevention plans have been established for FY Jul 2013-Jun 2014.

Complied

• Details of complaints and grievances (Criterion 6.3);

Details of complaints and grievances for FY Jul 2013- Jun 2014 have been addressed in the stakeholders meetings.

Complied

• Negotiation procedures (Criterion 6.4);

Negotiation SOPs - App3 of Sime Darby Plantation Quality Management System Manual have been maintained. Current document in the Sime Darby Plantation QMS Manual is dated 01 Nov 2008.

Complied

• Continual improvement plans (Criterion 8.1);

Management Plans for continual improvement have been established for social, safety & health, environmental impacts, pollution prevention and mill/estate operations for FY Jul 2013-Jun 2014.

See 8.1.1 to 8.1.6.

Complied

• Public summary of certification assessment report;

Public summary of certification assessment report to be made publicly available as per usual RSPO procedure.

Complied

• Human Rights Policy (Criterion 6.13).

Human Rights Policy in process of being documented and communicated to all levels of the workforce and operations.

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



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Criterion 1.3

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


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

Major / Minor (TBF)

Policy of commitment to a Code of Ethical Conduct and Integrity in process of being documented and communicated to all levels of the workforce and operations.

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

Principle 2: Compliance with applicable laws and regulations

Criterion 2.1

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


2.1.1 Evidence of compliance with relevant legal requirements shall be available.

Major Compliance

Permits and licenses required for mill and estates in SOU 21 were available, displayed and renewed/updated at the respective mill and estate office(s). Examples of permits and licenses verified were the DOE prescribed premise license for the mill, scheduled waste disposal by licensed contractors, local government business license for the current year, payment of land tax for mill and estates.

Complied

2.1.2 A documented system, which includes written information on legal requirements, shall be maintained.

Minor Compliance

The documented system established had been maintained and implemented.

Complied

2.1.3 A mechanism for ensuring compliance shall be implemented.

Minor Compliance

Evaluation of compliance against legal requirements is conducted annually and the latest was conducted Dec. 2013 for the estates and mill in SOU 21.

Complied

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

Minor Compliance

Noted applicable local, national and ratified international laws were reviewed to ensure that they are current and updated in the legal register in Dec. 2013. The Sustainability Team from Sime Darby Plantation supports the SOU 21 management to ensure all applicable laws including international and ratified conventions applicable in Malaysia to their operations are listed in their legal register (LORR).

Complied

Criterion 2.2

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


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

Land titles were maintained and verified including payment of land tax during the audit (see also 2.1.1).

Complied



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Major Compliance

2.2.2 Legal boundaries shall be clearly demarcated and visibly maintained.

Major Compliance

Boundary stones and markers were visibly sighted at the Labis Forest Reserve and no disputes on the right to use the land

Complied

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

Major / Minor (TBF)

Verified no disputes recorded in SOU 21 since the last audit Complied

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

Major / Minor (TBF)

Verified no disputes recorded in SOU 21 Gunung Mas since the last audit

Complied

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

Major / Minor (TBF)


Complied

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

Major / Minor (TBF)


Complied

Criterion 2.3

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


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

Verified no legal, customary or user rights recorded in SOU 21 Gunung Mas since the last audit

Complied



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Major Compliance

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

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

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

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

Minor Compliance


Complied

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

Major / Minor (TBF)


Complied

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

Major / Minor (TBF)


Complied



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

Criterion 3.1

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


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

Major Compliance

Both the mill and the estates had management plan for 5 years, with details such as yield/ha., CPO production, OER, KER, and cost of production. Records had been verified to be satisfactory.

Complied

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

Minor Compliance

Annual replanting programme projected to 2017/18 had been verified:

Ha in 2013/14 14/15 15/16 16/17 17/18

Y Peng Et - - - 133.31 196.94

K Klebang Et - 84.56 - 117.36 203.18

Complied

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

Criterion 4.1

Operating procedures are appropriately documented, consistently implemented and monitored.


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

Major Compliance

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

Complied

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

Major / Minor (TBF)

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

The name of the material used has been recorded suitably in fertilizer application and insecticide spraying application records in Bukit Paloh Estate, Yong Peng Estate and Kempas Klebang estates. Thus, previous Minor NCR was effectively closed

Complied

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

Minor Compliance

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

Complied

4.1.4 The mill shall record the origins of all third-party sourced

The mill did not source any FFB from third-party. The entire crop was supplied by the estates within the PMU grouping and

Complied



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Fresh Fruit Bunches (FFB).

Major / Minor (TBF)

other certified Sime Darby estates as verified from the records that indicate the source of origin of FFB.

Criterion 4.2

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


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

Minor Compliance

Fertilizer inputs were based on Sime Darby Research Station’s recommendations.

Complied

4.2.2 Records of fertiliser inputs shall be maintained.

Minor Compliance

Records of fertilizer application had been verified to be in order.

Complied

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

Minor Compliance

Leaf sampling and analysis had been carried out annually.

Soil sampling and analysis had been carried out at 5 year cycle. Records of the sampling, analysis and monitoring had been verified to be satisfactory.

Complied

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

Minor Compliance

EFB had been utilized as mulch in the immature area. 2 rounds of application around the circle of young palms had been carried out during the immaturity period.

Any surplus would then be applied in the mature area.

POME had been utilized in compost preparation and land application.

In replanting area, the palm trunk had been shredded and stacked in the inter-row for recycling of nutrients back to the soil during the process of decomposition.

Complied

Criterion 4.3

Practices minimise and control erosion and degradation of soils.


4.3.1 Maps of any fragile soils shall be available.

Minor Compliance

Based on the soil map, there was no fragile soil on the estates visited. This was also verified during field visits.

Complied

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

Water Conservation Terraces (WCT) had been constructed on slope between 2° to 6°. However, more WCT should be constructed to enhance the water conservation in the field.

Observation



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Minor Compliance An observation had been issued.

Planting terraces had been constructed on slopes >6°, as per policy stated in SOP.

Fields were generally covered with cover crop and soft grasses.

4.3.3 A road maintenance programme shall be in place.

Minor Compliance

The estate roads found to be in satisfactory condition.

Road maintenance programme had been verified to be implemented on the estates.

Complied

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

Minor Compliance

There was no peat soil on Yong Peng Estate and Kempas Klebang Estate.

Complied

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

Minor Compliance

Not applicable at the PMU. N/A

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

Minor Compliance

Not applicable at the PMU. N/A

Criterion 4.4

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


4.4.1 An implemented water management plan shall be in place.

Major / Minor - TBF

Documented water management plan and relevant records had been verified to be in order.

Complied

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

Major Compliance

Buffer zone had been observed on both sides of stream in F 99 G on Yong Peng Estate.

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

Complied

4.4.3 Appropriate treatment of mill effluent to required levels and regular monitoring of discharge quality, especially Biochemical

In palm oil mill, water samples had been taken at monthly interval at the discharge point of effluent pond. BOD level had been in the range of 35 to 336 ppm. with an average of 184 ppm for land application from Jan to Dec, 2013.

Complied



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Oxygen Demand (BOD), shall be in compliance with national regulations (Criteria 2.1 and 5.6).

Major / Minor – TBF

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

Minor Compliance

Water usage in the mill from Jan to Dec ’13 ranged from 0.92 to 1.97 m3/tonne FFB with an average of 1.08 m3/tonne FFB which compared well with industrial norm.

Complied

For 4.4.2: Refer to the ‘RSPO Manual On Best Management Practices (BMP) for management and rehabilitation of natural vegetation associated with oil palm cultivation on peat’, July 2012.

Criterion 4.5

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


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

Minor Compliance

Records on planting of beneficial plants had been verified on the estates.

The Estates had achieved the target of planting 2 DM/ha. of beneficial plants, and they were planning to increase the amount to 3 DM/ha by June/July, 2014

There was an outbreak of bag worm attack in F 97D on Yong Peng Estate and it was brought under control by trunk injection of monocrotophos.

Complied

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

Minor Compliance

Training records for personnel on IPM implementation are satisfactory.

Complied

Criterion 4.6

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


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

Major Compliance

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

Basta with a.i. Glufosinate ammonium 13.5% had been used for circle spraying in immature palms due to its selective property.

Complied

4.6.2 Records of pesticides use (including active ingredients used and their LD50, area treated, amount of active ingredients applied per ha and number of

Records of pesticides and their active ingredients used, LD50, area treated, amount of a.i. applied per ha, and number of applications had been maintained and kept for a minimum of 5 years.

Complied



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applications) shall be provided.

Major Compliance

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

Major Compliance

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

Complied

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

Major Compliance

Paraquat had been eliminated since the end of December, 2008.

Alternatives such as Glyphosate Isopropylamine, Metsulfuron Methyl, and Triclopy Butoxyethyl Esther had been used with the elimination of Paraquat.

Complied

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

Major Compliance

All pesticide operators had been given training on the handling and application of the pesticides. Appropriate safety and application equipment had been provided and used by the operators.

All precautions attached to the products had been observed, applied, and understood by the workers.

Programme and training records had been verified to be in order.

Complied

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

Major Compliance

Pesticides had been stored in accordance to the local Occupational Safety and Health Laws and Regulations and local laws on Pesticides control.

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

Complied

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

Major Compliance

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

Complied

4.6.8 Pesticides shall be applied aerially only where there is documented justification. Communities shall be informed of

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

Complied



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impending aerial pesticide applications with all relevant information within reasonable time prior to application.

Major Compliance

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

Major Compliance

Periodic training on pesticide handling had been carried out. Information on the pesticides was being displayed next to the pesticides in the store and notice board.

Complied

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

Major Compliance

Scheduled waste had been disposed of through licensed contractor approved by DOE. Records of scheduled waste involved had been verified.

Complied

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

Major Compliance

Annual Medical surveillance had been carried out for workers handling pesticides:

Yong Peng Estate on 10-2-2014- 33 workers

Kempas Klebang Estate on 5-12-2013- 35 workers

Complied

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

Major Compliance

No pregnant or breast-feeding woman had been offered work as pesticide operator.

Complied

Criterion 4.7

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


The health and safety plan shall cover the following:

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

Major Compliance

Occupational Safety and Health (OSH) plan in compliance with OSH Act and Factory Machinery Act had been prepared and documented and implemented. A safety and health policy had been verified. Records on training and analysis on understanding of training by the workers had been verified.

Complied

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

All operations had been risk assessed, documented and implemented. All precautions attached to the products had been observed and applied to the workers through MSDS.

Complied



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the workers.

Major Compliance

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

Major Compliance

Awareness and training programme had been carried out. All workers involved had been trained in safe working practices. Appropriate PPE had been provided at the place of work to cover all potentially hazardous operations.

Complied

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

Major Compliance

The responsible person (usually the Mandore or Headman) had been identified. Records of regular meetings between the responsible person and workers to discuss about health and safety had been verified to be satisfactory.

Complied

4.7.5 Accident and emergency procedures shall exist and instructions shall be clearly understood by all workers. Accident procedures shall be available in the appropriate language of the workforce. Assigned operatives trained in First Aid should be present in both field and other operations, and first aid equipment shall be available at worksites. Records of all accidents shall be kept and periodically reviewed.

Major Compliance

Accident and emergency procedures had been written and briefed to staff, workers, contractors and visitors. Workers trained in First Aid were present in the mill and field operations.

First Aid Kits were available at worksites except as mentioned under 4.8.1.

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

Complied

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

Major Compliance

Medical care had been provided to all the workers.

Local workers are covered by SOCSO, whereas foreign workers are covered by Foreign Workers Compensation Scheme with RHB Insurance Berhad.

Complied

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

Major Compliance

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

Complied

Criterion 4.8

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



Page 25 of 49



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

Major Compliance

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

However, a group of newly employed oil palm frond pruning operators were not adequately trained. They were working without wearing safety helmets and the First aid Kits were not brought to the worksite although these had been provided by the estate management.

A Major Non-compliance had been issued.

Major Non-compliance

4.8.2 Records of training for each employee shall be maintained.

Major Compliance

Records of training for employee had been verified to be kept. Complied

Principle 5: Environmental responsibility and conservation of natural resources and biodiversity

Criterion 5.1

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


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

Major Compliance

The documented environmental aspects and impacts, risk assessments were reviewed in 05 Feb 2014. The review process had included stakeholders’ consultation with regards to environmental aspects, impacts, and pollution control, and ERT, HCV and land usage issues.

Complied

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

Major / Minor -TBF

Environmental improvement plan implemented and monitored every quarter taking into consideration the results of the environmental aspects and risk assessment conducted in 05 Feb 2014. Environment improvement plans include planting of beneficial plants, reviewing and improving maintenance of riparian buffer zones as well as continuous training, awareness and briefings related to environmental awareness activities.

Complied

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

An environmental improvement plan was implemented to monitor the effectiveness of the mitigation measures. This plan incorporated a monitoring protocol, which is adaptive to operational changes and is reviewed every year to reflect the results of monitoring operational changes that may have positive and negative environmental impacts. The latest review for FY 2013/2014 was done on 05 Feb 2014.

Complied



Page 26 of 49


Major / Minor -TBF

Criterion 5.2

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


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

Major Compliance

HCV(s) identification and assessment maintained as per Biodiversity Baseline Assessment Report. Previous Biodiversity Baseline Assessment was done in May 2009. Next Biodiversity Baseline Assessment is ongoing at time of this surveillance audit and expected to be completed by April 2014.

Complied

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

Major Compliance

Management plans for HCV habitats and their conservation were currently monitored, tracked and updated periodically within the estates / mill. However, latest review of HCV by SDPSB Sustainability Department indicates no RTE species or HCV within SOU 21.

Complied

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

Major Compliance

Evidence to continuously prevent and discourage illegal or hunting, fishing or collecting activities were maintained and implemented in SOU 21. Signages as well as routine patrolling activities were utilised for this purpose.

Complied

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

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

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

Major / Minor -TBF

Management plans were established and monitoring outcomes were reviewed by the estate managers. Ongoing monitoring of the management plan on the status of HCV and RTE species was noted.

Complied

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

Currently, there was no instance of HCV set-aside that conflicts with the rights of local communities. Therefore, the negotiated agreement of such nature is not applicable.

Complied



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these rights.

Major / Minor -TBF

Criterion 5.3

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


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

Major Compliance

Documented identification of all wastes were reflected in the Waste Management Plan for the current year (2013/2014). Dated 05/02/14- Yong Peng Estate (YPE) Dated 01/02/14 - Kempas Klebang Estate(KKE) Dated 01/07/13 - Gunong Mas Mill

Complied

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

Major / Minor -TBF

The Waste management plan for estates and mill were implemented. SOP for the handling of domestic waste, schedule waste and recycling were maintained and implemented. The desludging of the mill‘s effluent treatment ponds adhered to the schedule/plan as required in the license

Complied

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

Major / Minor -TBF

The composting plant which is located adjacent to the mill was commissioned and was fully operational in 2012. Asia Green Resources Sdn Bhd had been appointed by Sime Darby Plantation, HQ to operate the composting plant.

The composting plant recycles waste from the Gunung Mas POM such as the EFB and POME . The compost from the composting plant is used for land application at Gunung Mas Estate which is adjacent to the composting plant.

Complied

Criterion 5.4

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


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

Minor Compliance

The mill production output records and the two boilers operational records were monitored monthly till Feb 2014 and had included monitoring of the renewable energy usage .

The renewable energy usage from the POM’s data analysis indicates 95.74 kWh/mt CPO for the last period from July 2013 to Feb 2014.

Complied

Criterion 5.5

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


5.5.1 There shall be no land preparation by burning, other than in specific situations as identified in the ‘Guidelines for the

Zero open burning policy upheld in SOU 21as per SOP Section B2 - Felling/Land Clearing & Land Preparation dated 01/11/2008. SOU21 management are strictly

Complied



Page 28 of 49


Implementation of the ASEAN Policy on Zero Burning’ 2003, or comparable guidelines in other regions.

Major Compliance

complying to the Malaysian environmental law –EQA and Regulations 1974.

No physical evidence of open burning.

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

Minor Compliance

Previous crop were felled or mowed down, chipped/shredded. No evidence of open burning of previous crop carried out as per SOP mentioned above.

Complied

Criterion 5.6

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


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

Major Compliance

Aspect and impact assessment performed has been updated in Feb 2014.

POME that was discharged was controlled, monitored and results of effluent sampling were meeting DOE requirements. DOE was notified and results declared to DOE Kluang District periodically. Authorisation letter from DOE to discharge POME after processing by effluent ponds was verified during this audit.

The online Continuous Emission Monitoring System for the Gunung Mas POM has been established with DOE since 2013. No violations from DOE have been received for FY2013/2014 to date.

Complied

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

Major / Minor -TBF

Significant pollutants and greenhouse gas (GHG) emissions were identified, e.g. POME, diesel / fuel and fertilizer usage have been documented at the PMU. It is noted that the SDPSB Sustainability Department from HQ have already established plans for implementation and monitoring of GHG emissions.

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

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

Monitoring and reporting of the significant pollutants to water, gaseous emissions to air and contamination on land are available. Tools and systems used include the DOE online CEMS monitoring for air emissions, water quality at discharge points as per DOE regulations and Scheduled Waste disposal were adhering to DOE requirements. It

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



Page 29 of 49


Major / Minor -TBF was verified that the POME is treated using aerobic and anaerobic ponds. Effluent waste-water samples were regularly taken every six months and tested by the laboratory mill officer in charge and analyzed to ensure compliance to DOE requirements. Records are maintained and were verified on-site to have met the permissible regulatory limits.

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

Criterion 6.1

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


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

Major Compliance

A documented Social Impact Assessment Report dated Feb 2009 covering the SOU 21 Gunung Mas PMU areas with three estates and one POM had been established by the TQEM Department of SDPSB, which is independent from the SOU 21 Gunung Mas Operating Unit. Records of meeting with stakeholders indicated discussions held generally on matters pertaining to access roads and use rights within SOU21, working conditions, cultural/festival activities, health facilities and other community values. A time table of activities identified was sighted with time frame on implementation plans. Site inspection carried out confirmed the implementation was in progress.

The current social Management Plan was updated for FY 2013/2014. Records of the regular stakeholder meetings have been maintained for FY 2013/2014. Issues raised during the stakeholder consultations have been followed up in an effective, timely and appropriate manner by the mill and estate management. Issues included areas related to road maintenance, water supply, housing facilities of workers and general welfare (festivals, celebrations, social events and healthcare) at SOU21. Other issues identified were also responded by the estate management with appropriate time–scales, responsibilities, actions and regular monitoring.

Complied

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

Minor Compliance

Social Management Plans have been established with input from stakeholders meetings with participations from affected parties such as community members, village heads, mill/estates employees, contractors, suppliers, transporters among others.

Complied

6.1.3 Plans for avoidance or mitigation of negative impacts and promotion of the positive ones, and monitoring of impacts identified, shall be developed in consultation

Action plans denoting PIC and timelines have been established within the Social Management Plans for FY 2013/2014.

Local communities are allowed to use facilities available in

Complied



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with the affected parties, documented and timetabled, including responsibilities for implementation.

Major / Minor -TBF

the estate for their activities, e.g. wedding reception and VIP visit at the estate community hall, road access through the estate as a short-cut to nearby town, water supply (by request) for local communities during communal activities.

Sime Darby Plantation Group, as of their Corporate Social Responsibility (CSR) commitment, have an extensive CSR programme which include activities related to local employment, community development , cultural and religious activities, health and education, community infrastructure and sustainability projects. These activities have been widely reported in the local media, Sime Darby newsletters as well as their corporate website.

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

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

Major / Minor -TBF

Social Management Plan based on the stakeholders’ consultation as well as all inputs during the external and internal meetings conducted in 2013 were developed by each PMU in the grouping to address the issues raised.

Complied

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

Major / Minor -TBF

Verified no smallholder schemes in SOU 21 Gunung Mas since the last audit

Complied

Criterion 6.2

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


6.2.1 Consultation and communication procedures shall be documented.

Major Compliance

Documented consultation and communication procedures- titled “Handling Social Issues” SOP dated 01 Nov 2008 has been established for SOU 21 Gunung Mas PMU.

Complied

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

Minor Compliance

The responsibility to ensure effective implementation of the aforementioned SOP is with the respective Mill and Estate Managers assisted by nominated social officers. The Social Officer of the respective operating unit oversees the social/welfare portfolio of the mill/estates.

Complied

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

List of stakeholders have been updated and maintained for FY 2013/2014. Records of meetings were maintained, i.e. on matters related to road access, water supply, religious festivities, visits by government officials. These records were available in the Social Management Plan files at the respective units within SOU21. Mill / Estate activities and policies were displayed at notice boards in local languages as well as in English.

Complied



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Minor Compliance

Criterion 6.3

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


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

Major Compliance

A documented dispute resolution procedure is available in Mill and Estate Quality Management System Manual which is effective, timely, appropriate and open to any affected parties. Records are to be maintained since 2009 and retained for at least 3 years.

Complied

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

Minor

Documented SOP to resolve disputes- titled “Handling Social Issues” SOP dated 01 Nov 2008 has been established for SOU 21 Gunung Mas PMU. Stakeholder meetings are held regularly at SOU21. Complaints, disputes including on gender issues are dealt with by open and consensual agreements during the stakeholder meetings. Follow-up actions had timelines, responsibilities, details of actions and monitored by Mill and Estate Managers for satisfactory conclusion. Minutes of meetings are filed by Chief Clerk and reviewed by stakeholders including gender representatives as well as Mill and Estate Managers. The system for dealing with complaints and grievances of affected parties are open to NGOs, government agencies, community members, village heads, mill/estate employees, contractors, suppliers, transporters among others.

Complied

Criterion 6.4

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


6.4.1 A procedure for identifying legal, customary or user rights, and a procedure for identifying people entitled to compensation, shall be in place.

Major Compliance

Documented SOP to identify legal and customary rights as well as people entitled to compensation has been established- titled “Handling Land Disputes” SOP dated 01 Nov 2008 for SOU 21 Gunung Mas PMU. However to date, there have been no issues related to loss of legal customary rights with indigenous peoples, local communities and other stakeholders.

Complied

6.4.2 A procedure for calculating and distributing fair compensation (monetary or otherwise) shall be established and implemented, monitored and evaluated in a participatory way, and corrective actions taken as a result of this evaluation. This procedure shall take into account: gender differences in the power to claim rights, ownership and access to

A procedure for calculating and distributing fair compensation taking into account various factors such as gender differences, ownership and access to land, rights of long-established communities, differences in ethnic group’s proof of legal versus communal ownership of land have been established - titled “Handling Land Disputes” SOP dated 01 Nov 2008 for SOU 21 Gunung Mas PMU.

Complied



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land; differences of transmigrants and long-established communities; and differences in ethnic groups’ proof of legal versus communal ownership of land.

Minor Compliance

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

Minor Compliance

There have been no issues related to loss of legal customary rights with indigenous peoples, local communities and other stakeholders to date.

Complied

Criterion 6.5

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


6.5.1 Documentation of pay and conditions shall be available.

Major Compliance

Documentation of pay and benefits e.g. pay slips, appointment letters, leave, medical records, bank statements /records are maintained by the Chief Clerk at respective mill/estate offices and complies with Malaysian regulations.

Complied

6.5.2 Labour laws, union agreements or direct contracts of employment detailing payments and conditions of employment (e.g. working hours, deductions, overtime, sickness, holiday entitlement, maternity leave, reasons for dismissal, period of notice, etc.) shall be available in the languages understood by the workers or explained carefully to them by a management official.

Minor Compliance

Documents are available in languages understood by workers. Pay and conditions have been explained carefully to workers by the plantation management from the respective mills and estates. Basic daily pay was verified to be in accordance with the Minimum Wage Order 2012.

Complied

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

Minor Compliance

Adequate housing, water supply, electricity, medical, education and welfare amenities have been provided. During the interview with workers at the estates confirmed that other subsidies are also provided e.g. groceries, school bus fare, school fee, mobile phone credit top-up, cultural, religious practices of workers are adequately catered for including Muslim Surau and Hindu temples for the workers. Labour Policy complying to all RSPO requirements have been established by Sime Darby Corporate Management and distributed to all SOUs including SOU 21. Field visits and interviews have verified that foreign workers have been covered with workmen insurance as provided by law. In addition, there is no discrimination practiced against foreign workers. All migrant workers are legally employed.

All migrant workers have been provided with employment

Complied



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contracts understood by them, proper housing and living conditions, safe working environment and facilities for cultural/religious activities.

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

Minor Compliance

Access to food for the workers are considered adequately and sufficiently provided through sundry shops available in each estate and mill linesite. Children accommodated at the crèches are also provided with sufficient free infant formula.

Complied

Criterion 6.6

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


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

Major / Minor -TBF

NUPW representative from Yong Peng estate were interviewed and confirmed that workers are free to join any trade union of their choice. NUPW representatives from Sime Darby SOU21 meet up regularly at least once per year with national level NUPW representatives.

Complied

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

Major Compliance

There is a published statement of social policy in Bahasa Malaysia and English, recognizing the employee’s freedom of association as stipulated in the Industrial Relations Act, 1967, Malaysia. MAPA/AMESU collective agreement as well as NUPW collective an agreement was available in the mill/estate offices. The NUPW/AMESU worker representatives and Gender Committees interviewed confirmed that the work and pay conditions were satisfactory.

Complied

Criterion 6.7

Children are not employed or exploited.


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

Major Compliance

The Social Policy stipulates that no child labour is allowed. Implementation of this policy has been consistently maintained and field visits and inspection of payroll records confirmed no evidence of child labour.

Minimum working age is above 18 years old in SOU21 PMU.

Complied

Criterion 6.8

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


6.8.1 A publicly available equal opportunities policy including identification of relevant/affected groups in the local environment shall be documented.

Major Compliance

The Sime Darby Social Policy prohibits any discrimination based on race, caste, nationality, gender, disability, sexual orientation, union membership, political view, religion and age.

Complied



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

Minor Compliance

Stakeholder interviews and inspection of records confirmed that there were no negative issues of discrimination. Workers include men and women were found to be from diverse backgrounds-race religion and age. No discrimination was found for foreign workers e.g. in salary, workmen insurance, medical and housing facilities.

Affirmative action (positive discrimination) is done by providing opportunities to locals for employment and business opportunities.

Complied

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

Major / Minor -TBF

Applications for field worker positions most of the times will be accepted by the estate managements with very minimal requirements due to short of labour supply in the industry. Gn. Mas POM however will require certain special skills from the applicants as the nature of the jobs offered are more technical.

However, in promotions into higher positions all PMUs made their decisions based on skill, capabilities, qualities and medical fitness of the workers. It was evident during the audit where no discrimination based on nationality, race, gender, age, etc. found.

Complied

Criterion 6.9

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


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

Major Compliance

SOU21 PMU has a publicly available Gender Policy and Gender SOP. Series of briefings and training for women issues awareness and empowerment have been conducted since 2008 till present, involving workers, suppliers, subcontractors and managers of SOU21 mill and estates. Gender policy in English and Bahasa Malaysia is available in all mill and estates and displayed at public areas.

The SOU21 Gender Committee had conducted periodic meetings; activities have been planned for FY 2013/2014 such as sewing classes, cooking classes, computer training, social activities and counseling among others.

However, it was found that awareness building or briefing sessions were focusing more on the female workers, whilst male awareness building for male workers are lacking.

Observation

2 of 2

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

Major Compliance

Kempas Klebang estate [13 Mar. 2014]

− Women are given two months paid maternity leave as required by law.

6.9.3 A specific grievance mechanism which respects anonymity and protects

There is an established mechanism in the form of suggestion box, internal NUPW meeting and Communication Book to manage grievances from internal

Complied



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complainants where requested shall be established, implemented, and communicated to all levels of the workforce.

Major / Minor -TBF

and external stakeholders and as well as from the general public.

The procedure is explained in a flow chart and available in Bahasa Malaysia for easy understanding of the local people.

Sensitive grievances and complaints are treated as private and confidential thus protecting the anonymity of the complainants, for example the sexual harassment reports. The sexual harassment report books are kept under lock and key and accessible only to assigned personnel within the Gender Consultative Committee.

Criterion 6.10

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


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

Major Compliance

All FFB supplied at SOU21 from Jan 2012 onwards were from SDPSB estates. Pricing mechanism for FFB and other inputs/services have been documented. The inputs/services with local business were mainly for the supply of transport services, chemicals, fertilizers, equipment spare-parts, equipment maintenance services and manpower were also found to be equitable. The stakeholders interviewed provided positive comments/feedback on SOU21 management practices.

Complied

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

Major / Minor -TBF

The interviews conducted with estate field workers confirmed that the workers are aware of FFB pricing and the payment they are entitled for the types of work they are conducting.

Data related to inputs/services such as costing incurred by transportation, logistics, maintenance for road and vehicles, social and environmental costs were noted to have been documented in the respective 5-year budget plans of the Mill and estates.

Complied

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

Minor Compliance

All parties having contractual agreements with PMU had entered their contracts with adequate understanding of the terms and conditions set between both parties.

Evidence was obtained during the viewing of the contracts sampled which among others included the office staff, field workers of both genders; various contractors providing labour, transport and maintenance works at the grouping. On site stakeholder interviews and consultation carried out with the various parties further confirmed their understanding of the contracts entered. Based on the documented contracts sighted, review of meeting minutes with stakeholders as maintained in the respective files, there was no evidence to suggest of any unfair, illegal or non-transparent practices in the grouping

Complied



Page 36 of 49


dealings with the local community businesses.

6.10.4 Agreed payments shall be made in a timely manner.

Minor Compliance

Payment of wages to office staff as well as the field workers is made no later than third day of every month.

PMU by local business clearly stated that services rendered or purchases made will be paid within 60 days. This is a standard practice and the grouping received no complaints from any local business on delay of payments during the verification visit. The PMU audited also shows no pending payments to contractors or suppliers beyond the given period..

Complied

Criterion 6.11

Growers and millers contribute to local sustainable development where appropriate.


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

Minor Compliance

The commitment to contribute towards local communities is evident and verified

The POM is actively contributing to the communities within and outside the POM. E.g. distribution of “dagingkorban” during Eid and RM200.00 donation to the SMK Bekok PIBG in 2013.Local contractors are given opportunity to join in a tender process for the PMUs plans to build sufficient workers quarters.

The estate is actively contributing to the communities within and outside the POM. E.g. cleaning of S.K. Ldg. Yong Peng to prevent dengue outbreak.

Upgrading of all housing units from two rooms to three rooms in Kempas Klebang.

Complied

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

Major / Minor -TBF.

Verified no smallholder schemes in SOU 21 Gunung Mas since the last audit

Complied

Criterion 6.12

No forms of forced or trafficked labour are used.

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

Major / Minor -TBF

All foreign workers have valid passport. Thus no evident of forced or trafficked labour.

Complied

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

Major / Minor -TBF

No incidents have been found and this is confirmed that during interviews with external stakeholders this issue has not been raised.

Complied

6.12.3 Where temporary or migrant The Sime Darby Social Policy adopted and implemented Complied



Page 37 of 49


workers are employed, a special labour policy and procedures shall be established and implemented.

Major / Minor -TBF

by PMU cover all necessary aspects of migrant workers related issues.

Criterion 6.13

Growers and millers respect human rights.


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

Major / Minor -TBF

The Sime Darby Social Policy prohibits any discrimination based on race, caste, nationality, gender, disability, sexual orientation, union membership, political view, religion and age. Generally the policy covers human rights of the workers and staff in the PMU.

Complied

Principle 7: Responsible development of new plantings

SOU 21 Gunung Mas grouping has a documented procedure for this development but has not carried any new plantings after Nov 2005. Therefore, the requirements of Principle 7 are not applicable during this assessment.

Principle 8: Commitment to continuous improvement in key areas of activity

Criterion 8.1

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


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

Major / Minor -TBF

As a minimum, these shall include, but are not necessarily be limited to:

• Reduction in use of pesticides(Criterion 4.6);

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

• Waste reduction (Criterion 5.3);

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

EFB mulching done in mature and immature palms.

Increase in the planting of beneficial plants from 2 DM/ha to 3 DM/ha. To promote the breeding of more predators which will in turn reduce the attack by caterpillars and bag worm, thereby reducing the use of pesticides.

At Kempas Klebang Estate, Barn Owl boxes would be increased over 400 ha, along the boundaries next to the small-holdings, from 1 box:10 ha to 1 box:5 ha.

Environmental impacts and action plans were monitored, implemented and reviewed periodically.

Complied



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7.8);

• Social impacts (Criterion 6.1);

• Optimising the yield of the supply base.

The composting plant at SOU21 recycles waste from the Gunung Mas POM such as the EFB and POME thus reducing thir negative environmental impacts. The compost from the composting plant is used for land application at Gunung Mas Estate which is adjacent to the composting plant.

Environmental impacts improvement also include additional planting of beneficial plants for FY2013/2014, reviewing and improving maintenance of riparian buffer zones as well as continuous training , awareness and briefings related to environmental awareness activities

PMU Gunung Mas Grouping SOU21 has identified the waste reduction plans for mills and estates for FY July 2013 to Jun 2014. These include continued usage of composting plant, increasing capacity of composting and POME discharge used for land application.

PMU Gunung Mas Grouping SOU21 has identified the pollution prevention plans, implemented and monitored the plans in order to mitigate the negative impacts on an annual basis to demonstrate continuous improvement. Pollution prevention plans for mills and estates for FY July 2013 to Jun 2014 are:

a) Reduction of leakage from vehicles causing oil spillage

b) Improve maintenance of tractors and air filters to reduce air pollution from tractor smoke emission

c) Reduce leakage of pesticides during chemical mixing and washing process.

Significant pollutants and greenhouse gas (GHG) emissions were identified, e.g. POME, diesel / fuel and fertilizer usage have been documented at the PMU. It is noted that the SDPSB Sustainability Department from HQ have already established plans for implementation and monitoring of GHG emissions

PMU Gunung Mas Grouping SOU21 has identified the social impacts, implemented and monitored the plan to mitigate the negative impacts and promote the positive ones on an annual basis to demonstrate continuous improvement. Continual improvements planned and /or implemented FY2013/2014 include computers assistance for education , paint contribution to religious temple , creche improvement – painting , cabinets , furniture , baby-care equipment , improvement of flooring , gender committee organised educational visit for organic farming techniques and social activities for specific groups .

Continual improvement on social aspects planned by the



Page 39 of 49


PMU are as listed below:

− Upgrading of 2-bed rooms housing units to 3-bed rooms housing units for 40 house units in Kempas-Klebang estate. 5 units have been completed.

− Increase of NUPW and management meeting from once a year to 3 times a year at the Gn. Mas POM.

− Continuation of estate managements’ RM10 contribution out of RM20 monthly commitment to workers personal assurance scheme. This is in addition to SOCSO and FWCS contributions.

Level indicator had been provided at vertical clarifier for better skim oil control in the mill.

Provision of indicator for monitor cone guide at press passing digest.

Land application of POME in oil palm area.

New fertilizer store will be built on Kempas Klebang in 2013/14.

3.1.1 Supply Chain Certification Standards Findings - on CPO Mill The Supply Chain model applied at SOU 21 Gunung Mas grouping - POM during this Annual Surveillance Assessment (ASA-04) cum Extension of Scope is Segregation – CPO Mills: SG Details of findings are as follows:

D.1 Documented procedures


D.1.1 The facility shall have written procedures and/or work instructions to ensure the implementation of all the elements specified in these requirements. This shall include at minimum the following: a) Complete and up to date procedures covering the implementation of all the elements in these requirements

SCC Module D (SG):

Standard Operation Procedure Doc. No. : Appendix 15 Sime Darby Plantation Quality Management System Manual titled SOP for Traceability and RSPO Supply Chain Certification System dated March 2013 documented the implementation of a Segregation (SG) model Supply Chain Certification at the Palm Oil Mill, that included all the requirements for controlling the FFB receipt, processing, sales, CPO and PK dispatch, training and claims for Module D - Segregation for the Palm Oil Mill. Verified that all the elements of the supply chain requirements were implemented.

Complied

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

Audit interviews with the Palm Oil Mill Manager, Mr Shahrin Bin Sahuri and staff further confirmed that a) Mr Asma’i Fayyadh bin Abdul Samad (assistant

manager ) has been appointed as the PIC for the overall responsibility and authority over the implementation of the requirements of Module D.

b) he and other relevant staff under his charge

Complied



Page 40 of 49


implementation of this standard. demonstrated competence, skill and knowledge of the RSPO Supply Chain Certification Standard Module D requirements for the respective areas of operations.

The Palm Oil Mill Organization Chart and job responsibilities of employees (Mill Manager, Assistant Manager, Engineers, Assistant Engineers, Technicians, Security Officer, Weighbridge Operator, Laboratory Attendant, Chief Clerk, clerks) have been suitably defined in the Sime Darby Quality Management System Manual.

D.1.2

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

SCC Module D (SG):

• Standard Operation Procedure titled SOP for Traceability and RSPO Supply Chain Certification System has documented the implementation of a Segregation (SG) model Supply Chain Certification at the Palm Oil Mill, that included all the requirements for controlling the FFB receipt, processing, sales, CPO and PK dispatch, training and claims for Module D - Segregation for the Palm Oil Mill. Verified that all the elements of the supply chain requirements were implemented.

• Verified from receiving documents (FFB Despatch Chit and Weighbridge Ticket) and production records that the Palm Oil Mill receives all FFB supplied from certified sources i.e. their own 4 estates and certified FFB from other Sime Darby PMUs within the region. See details in section 1.8 of this report.

Confirmed that there was no supply of FFB from sources which were non-certified.

Complied

D.2 Purchasing and goods in


D.2.1 The facility shall verify and document the volumes of certified and non-certified FFBs received.

All supplies of FFB were subjected to verification of FFB Consignment Notes /FFB Despatch Weighbridge Ticket by weighbridge personnel and quality checks (Crop Quality Report (grading chit) by the mill personnel to determine the origin, quantity and quality of the FFB. The FFB Despatch Chit indicated the date, vehicle number, estate & field number, harvesting date, security seal number and weight.

Daily record on receipt of FFB detailed the supplying estates , time in/out, weighbridge ticket number, vehicle number, weight (gross, tare & nett) and actual average bunch weight. FFB Quality Report detailed the supply estate, nett weight, bunch quality, and date & time check and consignment note number.

Monthly FFB and CPO/PK Report and YTD (Year To Date) Report for the period July 2013 to present were audited / verified and found to have complied with requirements of the Segregated (SG) module whereby the Palm Oil Mill received and processed FFB from its own 4 estates and other crop from Sime Darby certified estates.

Complied



Page 41 of 49


D.2.2

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

The documented Standard Operation Procedure titled SOP for Traceability and RSPO Supply Chain Certification System dated March 2013 has specified an internal monitoring and reporting mechanism for notifying the CB of production variations that includes projected overproduction.

Complied

D.3 Record keeping


D.3.1 The facility shall maintain accurate, complete, up-to-date and accessible records and reports covering all aspects of these requirements.

SOP stipulates that records of transaction (goods in and goods out) and production records of FFB, CPO and PK are done daily. It was verified implemented and all records were summarised monthly covering all aspects of SCC requirements.

Complied

D.3.2 Retention times for all records and reports shall be at least five (5) years.

The SOP stated a retention period of at least 5 years for all records and reports. Pertinent records are properly filed, accessible and retrievable. The main records retained are Weighbridge Tickets, FFB Consignment Notes , FFB Received Notes , CPO Despatch Notes, MPOB L3 forms, CPO Despatch Authorisation Notes

Complied

D.3.3

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

A volume balance recording system was implemented to show the FFB deliveries, CPO and PK production and dispatch that were tabulated monthly.

Complied

D.3.4

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

Stamp prepared for indicating the SG Module of the Supply Chain model as ‘CSPO/SG’ on the relevant documents e.g FFB delivery documents, weighbridge tickets, delivery orders.

Complied

D.4 Sales and good out


D.4.1 The facility shall ensure that all sales invoices issued for RSPO certified products delivered include the following information: a) The name and address of the buyer; b) The date on which the invoice was issued; c) A description of the product, including the applicable supply chain model (Segregated) d) The quantity of the products delivered;

e) Reference to related transport documentation.

Sales contracts/invoices and dispatch of CPO and PK with the identification of contract number. Dispatched CPO and PK found to be accompanied by relevant documents such as weighbridge ticket, delivery order, gate pass, MPOB L3 Form that clearly state the following: a) to e). (See below) a) The name and address of the buyer; b) The date on which the invoice was issued; c) A description of the product, including the applicable supply chain model (Segregated) d) The quantity of the products delivered;

e) Reference to related transport documentation.

Complied

D.5 Processing




Page 42 of 49


D.5.1 The facility shall assure and verify through clear procedures and record keeping that the RSPO certified palm oil is kept segregated from non certified material including during transport and storage and be able to demonstrate that is has taken all reasonable measures to ensure that contamination is avoided. The objective is for 100 % segregated material to be reached. The systems should guarantee the minimum standard of 95 % segregated physical material9; up to 5 % contamination is allowed.

The processing facility has established and implemented a clear procedure and mechanism for the RSPO CSPO/SG module. Review and on-site verification confirmed that the mechanism was implemented and in compliance with the module requirements during receipt, transport and storage. No contamination to the segregated physical material was observed thus meeting the objective of 100% segregated material.

The following audit findings confirmed that the mill has demonstrated full compliance of D5.1 to D 5.3 including avoidance of contamination from uncertified materials.

Complied

D.5.2 The facility shall provide documented proof that the RSPO certified palm oil can be traced back to only certified segregated material.

Documents and records examined found to show evidence of traceability of the CPO and PK produced to the FFB supplied. SG module was verified from the production and operational controls and records for the July 2013 to Feb 2014 production and the requirements were found to be adhered.

Complied

D.5.3 In cases where a mill outsources activities to an independent palm kernel crush, the crush still falls under the responsibility of the mill and does not need to be separately certified. The mill has to ensure that: a) The crush operator conforms to these requirements for segregation

CPO produced was stored in Storage Tank nos.1 to 4, whilst the PK produced was stored in PK Bunker no.1 to 4.

There is no PK crushing in the Palm Oil Mill. All PK are sold and dispatched to external plants for crushing. PK delivered to Sime Darby Jomalina Sdn Bhd Kernel Crushing Plant located in Carey Island, Banting as well as PGEO and PVO located in Pasir Gudang, Johor. Currently CPO delivered to Sime Darby Jomalina Sdn Bhd located in Selangor and Palmaju Edible Oil, Mehowaleo Industries, and Keck Seng which are located in Johor.

Complied

b)The crush is covered through a signed and enforceable agreement

The sales are covered by a contract with specified quantity, and delivery quality requirements (% moisture, dirt etc).

Dispatch of CPO and PK to the external warehouse and buyer was carried out with relevant documents appropriately signed and traceable to the contracts.

Complied

D.6 Training


D.6.1 The facility shall provide the training for all staff as required to implement the requirements of the Supply Chain Certification Systems.

Training for mill personnel had been done by Sime Darby HQ personnel and records have been maintained at the mill office. Interviews conducted with mill personnel confirmed their awareness and knowledge of the Supply Chain Certification Systems and in particular, the SG module.

Complied

D.7 Claims


D.7.1 The facility shall only make claims regarding the use of or support of RSPO certified palm oil that are in compliance with the RSPO Rules

Based on the records verified at site in the mill, there have been no claims that can constitute a breach of the RSPO Rules for Communications and Claims as to date.

Complied.



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for Communication and Claims.

3.1.2 Status on Supply Chain on POM: Based on the documents and records presented during the on-site verifications made, it is concluded that the SDPSB POM has been able to comply with the requirements of the RSPO SCCS under the ‘SG’ module and is thus eligible for ‘SG’ trading for its palm products for year 2013 / 2014.

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

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

Assessment Type Year Noncompliance (NCR) Observations (OBS)

Main Assessment 2009 3 7

Annual Surveillance Assessment (ASA-01)

2011 0 8


2012 0 2


2013 1 0

Annual Surveillance Assessment (ASA-04) cum

Extension of Scope

2014 1 2

• Year 2013 – Annual Surveillance Assessment (ASA-03)

NCR # Indicator/ Category

Details of NCR ( in year 2013 )

Date issued: 22 Feb 2013

Date due: 21 Mar 2013 Date closed: 14 March 2014

Nonconformance: The name of the material used had been omitted on some of the pages in fertilizer application and insecticide spraying/application records in Bukit Paloh Estate.

Corrective Action (replied): (replied on 6 March 2013)

Each of the said pages have been corrected by filling in names of the materials used.

1 of 1

Minor

4.1.2

Verification:

The name of the material used has been recorded suitably in fertilizer application and insecticide spraying application records in Bukit Paloh Estate, Yong Peng Estate and Kempas Klebang estates.

• Year 2014 – Annual Surveillance Assessment (ASA-04) cum Extension of Scope

NCR # Indicator/ Category

Details of NCR ( in year 2014)

1 of 1

Major

4.8.1 Date issued: 14 March 2014

Date due: 13 April 2014 Date closed:

Further verification at next assessment (Re-certification)



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Nonconformance: In Yong Peng Estate, Field 96A, a group of new workers (on their 7th day of working) were pruning the excess fronds from the palms. They did not wear helmets and the first aid kit was not available on site. These items had been provided by the estate management. Although training was provided to these workers, the effectiveness evaluation of training provided to this group of workers was not done appropriately .

Also , in future , to ensure all contract workers receive adequate training prior to commencement of work, and their level of understanding towards the training is satisfied. Records of training shall be maintained adequately.

Corrective Action (replied):

The effectiveness evaluation of training provided to this group of workers has been done appropriately on 17/03/2014. Training evaluation records for Yong Peng estate were established and filed for reference.

Verification:

Corrective actions taken by the PMU considered to be adequate and acceptable.

Further verification at next assessment for effective closure.

3.2.1 Summary of Observations:

The 2 Observations (OBS) identified during this assessment are as per below.

Note: The progress made on the observations listed will be reviewed during the subsequent surveillance assessment on the action and implementations taken.

• Year 2013 – Annual Surveillance Assessment (ASA-03) - Nil

• Year 2014 – Annual Surveillance Assessment (ASA-04) cum Extension of Scope - 2

Status

Ref No: MYNI Indicator

Location Details of Observation Opened date

Closed date

Follow up remarks (if any)

Year 2014 – Annual Surveillance Assessment (ASA-04) cum Extension of Scope - 2

1 of 2 4.3.2 Kempas Klebang estate

Water Conservation Terraces (WCT) had been constructed on slope between 2° to 6°. However, additional WCT ‘s should be constructed to enhance the water conservation in the fields.

14 March 2014

2 of 2 6.9.1 In the mill and all estates, the awareness building activities on sexual harassment issues are focusing on female workers. Sime Darby Gender Policy and sexual harassment awareness building for male workers is limited to muster ground briefing which is insufficient and only on

14 March 2014



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case-by-case basis.

3.2.2 Identified Positive Elements

1. SOU 21 Gunung Mas POM has maintained a high standard of housekeeping and cleanliness by implementing an effective 5S quality environment system.

2. Good quality creches have been established and maintained in the SOU21 estates. 3. Latest line-site houses provided indiacte a higher quality aesthetic finishing for benefit of workers.

3.3 Feedback Raised by Stakeholders and Findings Intertek had obtained some written and verbal feedback from the stakeholders on the environmental and social performance of SOU 21 Gunung Mas grouping operations in the course of assessment and consultations. During the Annual Surveillance Assessment (ASA-04) cum Extension of Scope, all pertinent feedback issues were reviewed and followed up for verification and these had been accordingly incorporated into the report findings. See table below: Stakeholders’ Feedback PMU Response Intertek verification /

comment on further action (if any)

Further action from PMU (if any)

Government Agencies

Comunication done via email on 29 January 2014. See list under para 2.5. Received request from Forestry Department Peninsular Malaysia on 12 Feb 2014 to request Intertek to communicate to Forestry Department Johor. Intertek responded to them by clarifying that communication had also been simultaneously sent to Forestry Department Johor. No further enquiries raised.

No response needed.

Verified during on-site assessment that no response is needed.

Nil

Received comment from MPOB on 31Jan 2014 to inform Intertek that MPOB has not received any complaints regarding SOU21 and that all oil palm regulations have been complied with by SOU21 management.

No response needed.

Verified during on-site assessment that no response is needed.

Nil

Non-Governmental Organizations

Comunication done via email on 29 January 2014. See list

Ongoing consultations will be maintained.

Verified during on-site assessment that no

Nil



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under para 2.5. No feedback received.

No response needed. response is needed.

Local Communities

NUPW representatives requested monthly RM10 contribution from the PMU for personal assurance scheme subscribed from Great Eastern Insurance agency. Total monthly premium for the assurance scheme is RM20.

Request has been approved Only RM10 monthly deduction from workers pay slip for Great Eastern Insurance premium payment verified during the audit. Balance RM10 to make the total of RM20 is covered by the PMU.

Nil

School managements as well as teacher-parent groups requested for some donations from the PMU to conduct activities such as camping and sports day.

Request has been approved. Letters stating the amount donated addressed to nearby schools were verified during the audit.

Nil

Teachers from schools where the children from the estates are getting their education were invited to functions in the PMU when the school children performing for the public.

Invitations were accepted. Photos from the functions and invitation letters to the schools were verified during the audit.

Nil

Other Interested parties Comunication done via email on 29 January2014. See list under para 2.5.

No response needed. Verified during on-site assessment that no response is needed.

Nil



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4.0 ASSESSMENT CONCLUSION AND RECOMMENDATION Based on the findings above, Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping had been able to demonstrate its compliance with the RSPO Principles and Criteria (April 2013), Malaysian National Interpretation (MY-NI 2010) and the RSPO Supply Chain Certification Standard (November 2011) for Palm Oil Mill. Therefore, it is recommended that the certification of Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping be approved and continued.

Signed for and on behalf of Intertek Certification International Sdn Bhd

Mohan Thavarajah Mohan Thavarajah Lead Assessor Date: 16 April 2014 4.1 Acknowledgement of Internal Responsibility and Confirmation of Assessment Findings This is to acknowledge and confirm the assessment visits described in this report and the acceptance of the contents and findings in this assessment report. Signed for and on behalf of Sime Darby Plantation Sdn Bhd (SDPSB) Abdullah Bin Saminan Senior Manager Gunung Mas grouping Date: 16 April 2014



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4.2 Intertek RSPO Certificate details for SOU 21 Gunung Mas grouping

Certificate No: RSPO 901888

Issue date: 19 May 2010

Expiry date: 18 May 2015

Organization Sime Darby Plantation Sdn Bhd

Address of Head Office: Wisma Guthrie, 21, Jalan Gelenggang, 50490, Bukit Damansara, Kuala Lumpur

RSPO Membership No: 1-0008-04-000-00

Plantation Management Unit: SOU 21 Gunung Mas grouping

Address of POM: KKS Gunung Mas, K/B No. 524, 86009 Kluang, Johor, West Malaysia.

Standards:

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

Certification scope: Production of Crude Palm Oil and Palm Kernels

Supply Chain model for

CPO & PK:

Segregation

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

Total annual volumes / tonnages of FFB supplied from the supply base to SOU 21 Gunung Mas grouping POM during the previous period, current Annual Surveillance Assessment (ASA-04) cum Extension of Scope period and projected period are as follows:

Estate / Supplier FFB Processed in

2012 / 2013

FFB Processed in

2013 / 2014


FFB Processed for

2014 / 2015

- Projected

MT % MT % MT %

SOU 21 Gunung Mas grouping

191,346.26 66.71 *243,213.62 76.75 *267,703.77 80.26

Other certified Sime Darby estates

95,507.84 33.29 73,687.20 23.25 65,834.88 19.74

Other Suppliers (OCP) 0.00 0.00 0.00 0.00 0.00 0.00

Total 286,854.10 100 316,900.82 100 333,538.65 100

SCCS Model for POM SG SG SG

*Note: This figures include Yong Peng which is now under the SOU 21 Gunung Mas grouping FFB Processed in 2013 / 2014- Actual + Projected and projected figures for 2014 / 2015

The annual certifiable tonnages of CPO and PK production by SOU 21 Gunung Mas grouping from the supply base/suppliers as assessed and verified during the current Annual Surveillance Assessment (ASA-04) cum Extension of Scope (based on 2013 / 2014 data) are detailed as follows:

POM 2012 / 2013 2013 / 2014


2014 / 2015

- Projected

Total FFB 286,854.10 316,900.82 333,538.65



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Processed (MT)

Total CPO Production (MT)

63,308.70 OER: 22.07%

71,302.68 OER:

22.50% 75,046.20

OER: 22.50%

Total PK Production (MT)

15,776.98 KER: 5.50%

17,429.55 KER:

5.50% 18,344.63

KER: 5.50%