rspo audit report · felda bukit besar pom 30 w/p bukit besar, 81450 kulai, johor 103° 4210.82”...

RSPO Principles & Criteria Main Assessment Report

Report Number CU826922

RSPOPC-SUM-REPORT.F01 JULY2013 of 43

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

Tel: +603-3377 1600 / 1700

RSPO PRINCIPLES & CRITERIA PUBLIC SUMMARY REPORT

MAIN ASSESSMENT

Malaysia

FELDA BUKIT BESAR PALM OIL MILL 2013

Report prepared by: Simon Selvaraj (Lead Assessor)

Certification decision by: Hari Naveen Christopher (Certifier)

Certifying Office

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

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

Tel: +603-3377 1600 / 1700

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

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

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

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

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

obtained from CUC.

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

RSPO Approval Date 12/01/2006

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

mailto:[email protected]

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





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Table of Contents

PART 1: SCOPE OF THE CERTIFICATION ASSESSMENT AUDIT ........................................................................................................................ 3

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

1.7.1 Location of the Supply Base ............................................................................................................................................ 4 1.7.2 Statistics of the Supply Base and Estimated Tonnes of FFB produced per year ............................................................... 4 1.7.3 Percentage of Planted Oil Palm by different Age Ranges ................................................................................................ 4 1.7.4 Calculation of the Number of Production Units (N) to Sample for the Mill ..................................................................... 4

1.8 PROGRESS OF ASSOCIATED SMALLHOLDERS OR OUT-GROWERS, IF APPLICABLE TO THIS ASSESSMENT ................................................................. 4 1.9 LOCATION MAP FOR THIS CERTIFICATION UNIT (SEE APPENDIX 1) .............................................................................................................. 4

PART 2: PARTIAL CERTIFICATION ................................................................................................................................................................... 5

2.1 MANAGEMENT STRUCTURE ................................................................................................................................................................ 5 2.2 NON-COMPLIANCE IDENTIFIED WITH 2.1 ABOVE .................................................................................................................................... 5 2.3 SUMMARY OF THE TIME BOUND PLAN .................................................................................................................................................. 5 2.4 UN-CERTIFIED UNITS OR HOLDINGS ..................................................................................................................................................... 6 2.5 SUMMARY OF THE FINDINGS FOR PARTIAL CERTIFICATION ....................................................................................................................... 15 2.6 PARTIAL CERTIFICATION AUDIT AGENDA ............................................................................................................................................. 15

PART 3: AUDIT PROCESS .............................................................................................................................................................................. 16

3.1 ABOUT THE CERTIFICATION BODY ...................................................................................................................................................... 16 3.2 AUDIT TEAM ................................................................................................................................................................................. 16

3.2.1 Qualifications of the Lead Auditor............................................................................................................................................16 3.2.2 Qualifications of the Assessment Team ...................................................................................................................................17

3.3 AUDIT METHODOLOGY .................................................................................................................................................................... 19 3.3.1 General Overview ..........................................................................................................................................................19 3.3.2 Assessment agenda for this Audit ..................................................................................................................................20

PART 4 ASSESSMENT FINDINGS ................................................................................................................................................................... 21

4.1 LEAD ASSESSOR’S SUMMARY AND RECOMMENDATION FOR CERTIFICATION ............................................................................................... 21 4.2 SUMMARY OF THE FINDINGS BY PRINCIPLES AND CRITERIA ...................................................................................................................... 21

Principle 1: Commitment to Transparency .......................................................................................................................................21 Principle 2: Compliance with Applicable Laws and Regulations .......................................................................................................22 Principle 3: Commitment to Long-Term Economic and Financial Viability .......................................................................................24 Principle 4: Use of Appropriate Best Practices by Growers and Millers ...........................................................................................24 Principle 5: Environmental Responsibility and Conservation of Natural Resources and Biodiversity ...............................................27 Principle 6: Responsible Consideration of Employees and of Individuals and Communities by Growers and Millers .......................29 Principle 7: Responsible Development of New Plantings ..................................................................................................................32 Principle 8: Commitment to Continuous Improvement in Key Areas of Activity ...............................................................................32

4.3 NON-CONFORMITY RAISED DURING THIS AUDIT AND ANY FROM THE PREVIOUS YEAR, IF APPLICABLE .............................................................. 32 4.3.1 Non-Conformities Identified during this Audit ........................................................................................................................33 4.3.2 Non-Conformity Identified during the last ASA .......................................................................................................................39 4.3.3 Observations Raised During this Audit ....................................................................................................................................39

4.4 ISSUES THAT WERE RAISED DURING THE STAKEHOLDER CONSULTATION, IF ANY............................................................................................ 39

PART 5: RSPO SUPPLY CHAIN CERTIFICATION ............................................................................................................................................. 40

5.1 POM INCLUDED IN THE SCOPE OF THE AUDIT ..................................................................................................................................... 40 5.2 CONFIRMATION OF THE COMPANY’S SUMMARY OF ANNUAL CERTIFIED VOLUME OF RSPO CERTIFIED PALM OIL AND PALM KERNEL OVER A

SPECIFIED PERIOD ....................................................................................................................................................................................... 40 5.3 SUMMARY REPORT INCLUDING A BRIEF DESCRIPTION OF THE SCOPE OF CERTIFICATION .............................................................................. 40 5.4 FINAL CERTIFICATION DECISION BY CONTROL UNION FOR THE RSPO SCCS AUDIT OF THE POM .................................................................... 40

PART 6: CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY ..................................................................... 41

6.1 DATE OF NEXT ASA ........................................................................................................................................................................ 41 6.2 DATE FOR CLOSURE OF NON-CONFORMITIES ....................................................................................................................................... 41 6.3 SIGNING BY THE CLIENT ................................................................................................................................................................... 41 6.4 SIGNING BY THE LEAD AUDITOR......................................................................................................................................................... 41 6.5 SIGNING BY THE CERTIFIER ............................................................................................................................................................... 41

PART 7: APPENDICIES ................................................................................................................................................................................... 42

APPENDIX 1: LOCATION MAP FOR THIS CERTIFICATION UNIT ............................................................................................................................... 42





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PART 1: SCOPE OF THE CERTIFICATION ASSESSMENT AUDIT

1.1 Company and Contact Details

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

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

Contact Person: Mr. Norazam Abdul Hameed

Office Telephone: +603-2698 7772

E-Mail: [email protected]

Web Site: www.feldaglobal.com

Other Certifications Held: ISO, ISCC, etc

1.2 RSPO Membership & Certification Details

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

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

Certificate Number: C826922CU-RSPO.01.2014

Start Date Of Certificate: 28/03/2014

End Date Of Certificate: 27/03/2019

Date Of Original Certification: 28/03/2014

Scope: Certification of the Palm Oil Mill and Supply Bases

Type Of Certification: Single site

Duration Of Certificate: 5 Years from date of certification

1.3 Main Assessment Details

Dates Of This Audit: 03 – 07 December 2012

Audit Number: Main

1.4 Assessment Type

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

1.5 Location of the Palm Oil Mill

Name Palm Oil Mill

Mill Capacity

Location GPS Reference

(POM) MT/Hour Address Longitude Latitude

FELDA BUKIT BESAR POM

30 W/P Bukit Besar, 81450 Kulai, Johor 103° 4210.82” 1° 46’04.19”

1.6 Palm Oil Mill Output and Approximate Tonnages Certified

Figures below are from:

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

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

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

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

Projected Production from the last 12 Months (MT)

Actual Production for this Audit Year 2013 (MT)

Projected 12 Months (MT) Forecast Certified in this Report

FFB CPO PK FFB CPO PK FFB CPO PK

124,500 26,286.59 6,941.83 142,200 29,648.70 8,034.30 102,200 22,228.50 5,876.50 Note: The 12 month projected output is the average over previous 12 month period and the actual production for the 12 months from the date

of certification will be included in the second annual surveillance summary.

mailto:[email protected]

http://www.feldaglobal.com/





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1.7 General Description of Supply Base

Bukit Besar POM and supply bases are owned by the Felda Global venture. The mill receives 70 % of crops from their own estate and 30 % from the outside supplier, and details of the supply base are as below.

1.7.1 Location of the Supply Base

OPP

Oil Palm Plantation

Location GPS reference Area Summary (Ha)

Name Address Longitude Latitude Total Mature

OPP 1 Felda Bukit Besar

Pejabat Felda Bukit Besar. 81450, Kulai, Johor.

103°42’10.82” 1° 46’04.19” 1,638.03 1,627.35

OPP 2 Felda Bukit Ramun

Pejabat Felda Bukit Ramun. 81450, Kulai, Johor

103°43’3025” 1° 45’00.45” 1,374.14 1,374.14

OPP 3 Felda Pasir Raja Pejabat Felda Pasiraja 81450, Kulai, Johor.

103° 41’ 13.49” 1° 45’43.31” 1,704.56 1,704.56

TOTAL 4,716.73 4,706.05

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

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

OPP 1 Felda Bukit Besar 37,100 1997-2010 25

OPP 2 Felda Bukit Ramun 27,900 1989-2002 25

OPP 3 Felda Pasir Raja 37,200 1991-1997 25

TOTAL 102,200

1.7.3 Percentage of Planted Oil Palm by different Age Ranges

OPP Planting Years by 5 year Ranges

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

OPP 1 0 [1571.7 Ha] 95.95%

0 [55.65 Ha] 3.39%

[10.68 Ha] 0.65%

[1638.03 Ha] 100%

OPP 2 [73.76 Ha] 5.36%

[1093.36 Ha] 79.56%

[207.02 Ha] 15.06%

0 0 [1374.14 Ha] 100%

OPP 3 [888.86 Ha]52.14%

[815.7 Ha]47.85%

0 0 0 [1704.56 Ha] 100%

Total 4716.73

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

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

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

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

3 2 0 0

Explanation as to the selection of estates sampled

Two of the three estates were assessed.

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

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

Not Applicable

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





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PART 2: PARTIAL CERTIFICATION

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

2.1 Management Structure

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

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

No Section 2 is N/A

Go to 2.1.2

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

Yes Go to 2.1.5 Go to 2.1.3

2.1.3 Are there statements of the ultimate controlling shareholders and directors in the managing agency company/companies:

a. Explaining the legal relationship and the management arrangements with the subsidiary companies and / or with any operating groups?

- Go to 2.1.4

Go to 2.2.1

2.1.4 b. A statement of commitment to complying with the spirit of the RSPO for all companies and subsidiaries involved with the growing of oil palm and for the production of palm oil?

- Go to 2.4 Go to 2.2.2

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

Yes Go to 2.3 2.2.3

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

Yes

2.2 Non-compliance Identified with 2.1 Above

Section Non-compliance findings NC raised Category

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

- Major

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

- Major

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

- Major

2.2.4 No applicable membership of the RSPO. - Major

2.3 Summary of the Time Bound Plan

Section Requirement Findings and any action required Compliance

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

All subsidiaries, estates and mill are included Yes

2.3.2 Is the time bound plan challenging? Age of

plantations. Location. Mill

development. Infrastructure. Compliance

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

Yes





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with applicable law.

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

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

Yes

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

No changes identified Yes

2.3.5 Have there been any stakeholder comments?

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

Yes

2.3.6 Have there been any newly acquired subsidiaries?

Nil Yes

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

No lapses. Yes

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

Nil. Yes

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

The company is now on target to have all their properties audited and / or certified in accordance to time bound plan as stated in this report.

Yes

2.4 Un-Certified Units or Holdings

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

Section Requirement Findings and any action required Compliance

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

Yes. Yes

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

Primary forest.

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

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

No replacement of primary forest and HCV. Yes





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

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

Yes

2.4.4 Any Land conflicts are being resolved through a mutually agreed process, e.g. RSPO Grievance procedure or Dispute Settlement Facility, in accordance with RSPO criteria 6.4, 7.5 and 7.6.

None noted. No stakeholder comments or complaints received.

Yes

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


Yes

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


Yes

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

No Palm Oil Mill Country Supply Bases (estates, plantations, associations)

Targeted RSPO

Certification Year

Current Certification Status as per this Audit

1 Kota Gelanggi 1 Malaysia

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

2010 Certified

2 L. Utara 6 Malaysia

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

2010 Certified

3 Jengka 21 Malaysia

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

2010 Certified 14.01.2013 BSI





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4 Jengka 3 Malaysia

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

2010 Certified 13.12.2012 CUC

5 Jengka 8 Malaysia

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


6 L. Utara 4 Malaysia

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


7 Jengka 18 Malaysia

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


8 Padang Piol Malaysia FTP Padang Piol FTP Sg. Retang


9 Segamat GC Malaysia 2010 Certified 13.06.12 Sirim. Suspended.

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

2011

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

11 Lok Heng Malaysia

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

2011

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

12 Semenchu Malaysia

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

2011 Certified 25.07.2012 SGS





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13 Waha Malaysia

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

2011 Certified on 21.05.2012 Agrovet

14 B. Kepayang Malaysia

FP Terapai 3 FTP Kepayang FTP Mayam FTP Kumai

2011 Certified 7.01.2013 Sirim

15 Bukit Mendi Malaysia

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

2011 5.10.2012 Moody

16 Kemasul Malaysia FP Mengkarak 1 FP Mengkarak 2 FTP Kemasul

2011 Certified

17 Tementi Malaysia

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

2011

Approve by RSPO Certificate not yet issue. By Sirim

18 Palong Timor Malaysia

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

2012 2013

19 Triang Malaysia

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

2012 Certified

20 Belitong Malaysia

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

2012 Audit 2012

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

2012 Audit in 2012

22 Kahang Malaysia

FTP Kahang Barat FTP Kahang Timur FTP Ulu Dengar

2012 Audit 2012





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23 Kulai Malaysia

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

2012 Audit in 2012

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

2012 Audit 2012

25 Penggeli Malaysia

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

2012 Audit in 2012

26 Baiduri Ayu Malaysia

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

2013 2013

27 Embara Budi Malaysia

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

2013 2014

28 Kembara Sakti Malaysia

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

2013 2014

29 L. Kemudi Malaysia

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

2013 2014

30 Bukit Sagu Malaysia

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

2013 Audit 2012

31 Lepar Hilir Malaysia

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

2013 Audit 2012





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32 Neram Malaysia

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

2013 2014

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

2013 2014

34 M. Puspita Malaysia

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

2014 2014

35 N. Permata Malaysia FP Sahabat 50 FP Sahabat 51 FP Sahabat 52

2014 2015

36 Tersang Malaysia

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

2014 2017

37 Besout Malaysia

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

2014 2014

38 Sg Tengi Malaysia

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

2014 2014

39 Trolak Malaysia

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

2014 2014

40 Keratong 2 Malaysia

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

2014 2014

41 Keratong 3 Malaysia

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

2014 2014

42 Keratong 09 Malaysia F Keratong 10 FP Bera Selatan 7

2014 2013





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FP Keratong Timur FP MERCHONG 01 FAS Merchong

43 Selancar 2A Malaysia

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

2015 2015

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

2015 2015

45 Pasoh Malaysia

FTP Pasoh 1 FTP Pasoh 2 FTP Pasoh 3 FTP Pasoh 4 FP Bera Selatan 3

2015 2015

46 Serting Malaysia

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

2015 2015

47 Serting Hilir Malaysia

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

2015 2013

48 Krau Malaysia FP Krau 2 FP Krau 4

2015 2015

49 Mempaga Malaysia

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

2015 2015





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FTP Mempaga 2

50 Maokil Malaysia

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

2015 2013

51 Selendang Malaysia

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

2015 2016

52 Tenggaroh Malaysia

FP Tenggaroh 9 FP Tenggaroh 11 FP Tenggaroh 13 F Tenggaroh 2 F Tenggaroh 4 F Tenggaroh 5 F Tenggaroh 7 F Tenggaroh Timur 1 F Tenggaroh Selatan 1 F Tenggaroh 1 FAS T. TIMOR

2015 2013

53 T. Timor Malaysia

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

2015 2013

54 Chalok Malaysia

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

2016 2016

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

2016 2016

56 J. Baru Malaysia

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

2016 2016

57 Kertih Malaysia

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

2016 2016

58 F. Harapan Malaysia FP Sahabat 20 FP Sahabat 21 FP Sahabat 25

2013 2013





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FP Sahabat 22

59 H. Badai Malaysia

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

2016 2015

60 J. Bistari Malaysia

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

2016 2016

61 Kalabakan Malaysia

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

2016 2016

62 Umas Malaysia

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

2016 2016

63 Sampadi Malaysia

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

2017 2017

64 Aring A Malaysia

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

2017 2017

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

2017 2017

66 Ciku Malaysia

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

2017 2017

67 Kechau Malaysia

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

2017 2013





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FAS Telang

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

2017 2013

69 Kemahang Malaysia

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

2017 2017

70 Cini 2 Malaysia FTP Cini 1 FTP Cini 2

2017 2017

71 Cini 3 Malaysia

FP Terapai 1 FTP Cini 3 FTP Cini 4 FTP Chini 5 FTP Chini Timur 2 F Chini Timur 3 F Chini Timur 1 FP CINI TIMUR 04

2017 2017

72 Air Tawar Malaysia TBD 2017 2017

73 PT Citra Niaga Perkasa

Indonesia TBD TBD Recently completed the NPP in 2013

2.5 Summary of the findings for Partial Certification

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

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

2.6 Partial Certification Audit Agenda

Date Location Agenda

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

Opening meeting Documentation review





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PART 3: AUDIT PROCESS

3.1 About the Certification Body

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

3.2 Audit Team

Lead auditor: Simon Selvaraj

Team member 1: Mohd. Rizal bin Md. Kassim

Team member 2: Mahaswaran Maliyapan

Team member 3: Selvanathan Grapragasem

Team member 4: Jamalul Arif

3.2.1 Qualifications of the Lead Auditor

Requirement Qualifications

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

Post graduate qualification in agriculture with more than 5 years working experience in plantation.

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

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

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

Involved in RSPO assessment since November 2010. Member of CUC RSPO audit team. Involved in audits conducted in Malaysia and Indonesia.

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

Completed ISO 9001:2008 lead auditor course in July 2011. Successfully completed RSPO Lead Auditor Course.

Training in the practical application of RSPO certification systems.


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


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

Signed code of conduct. Signed with CUC

General knowledge of:

RSPO P&C standards. Yes

CUC organizational structure. Yes

CUC quality systems. Yes

Lead auditor role. Yes

Report writing. Yes

Stakeholder consultation. Yes

Certification decision process. Yes

RSPO SCCS program manual. Yes

CUC filing systems. Yes

Correct use of RSPO trademarks. Yes





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History and objectives of RSPO. Yes CV available. Yes Completion of CUC RSPO lead auditor training. Completed and passed RSPO endorsed lead auditor

training in April 2011.

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

Fluent in main local languages and English.

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

Muhd. Jamalul Arif Fluent in both English and Bahasa Malaysia

Mahaswaran Maliyapan Fluent in both English and Bahasa Malaysia

Selvanathan Grapragasem Fluent in both English and Bahasa Malaysia

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

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

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

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

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

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




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

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




Selvanathan Grapragasem SA 8000 advanced auditor, QMS, EMS &





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OHSAS Lead Auditor, Working experience in oil palm plantation.

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






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






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









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3.3 Audit Methodology

3.3.1 General Overview

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

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

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

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

Re-planting sites. Zero burn.

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

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

Water management. Water courses. Water monitoring.

Road maintenance. Run off.

Social amenities. Social Impact Audits.

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

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

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

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

Mill and workshop inspections. Documentation review & worker interviews.

Mill. SOP’s. Safe working environment. Gen sets. Walk ways. Signs. EFB. POME treatment. Emissions. Mass balance. Diesel tanks. PPE. Fire extinguishers. First aiders and boxes. Fuel and water usage.

OSH. Training. Management structure. First aiders.

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

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

Compliance against the RSPO SCCS certification scheme. Verification: Verification of implementation was done through field observations, workshop and chemical store inspections, worker and community interviews and mill inspections as summarized above.





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3.3.2 Assessment agenda for this Audit

Date Location Auditors Main activities

05/12/2012 [Wed]

Pengelli POM Office

Simon

08.30 Opening meeting- Centralized Chaired by the audit team leader

Introduction by team leader

Presentation by respective managers

Presentation of Palm Oil Mill source of FFB by respective managers

Bukit Besar POM

Jamal/Mahas/Selva

Field operations.

Worker interviews

Chemical stores

Workshops

Housing

Medical

Schools

Local communities

Environmental

Simon Supply Chain Certification Assessment of the POM (RSPO SCCS)

06/12/2012 [Thur]

Felda Bukit Besar

Simon

Field operations

Worker interviews

Housing

Medical

Schools

Local communities

Environmental

07/12/2012 (Fri)

Felda Bukit Besar

Simon

Field operations

Worker interviews

Housing

Medical

Schools

Local communities

Environmental

Felda Pasir Raja

Rizal/Mahas/Selva/Jamal

Field operations

Worker interviews

Housing

Medical

Schools

Local communities

Environmental

Penggeli POM Office

All auditors

16.00 - Closing meeting-Centralized Chaired by the audit team leader

Welcome and introduction by the team leader

Presentation of findings by the audit team

Questions and answers

Final summary by team leader End of assessment





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PART 4 ASSESSMENT FINDINGS

4.1 Lead Assessor’s Summary and Recommendation for Certification

The mill and supply bases are as per the above table 1.5 and 1.7 and were assessed in the field, offices, facilities, stores and document reviews were carried out in accordance to the RSPO principles and criteria. This assessment was carried out together with 2 others facilities under FELDA. Common systems were identified and specific evidence was recorded for individual estate and mill. Interviews with Estate / Scheme Managers, Mill Manager, members of workers union and committee took place in both formal and informal environments and worker interviews were conducted at the supply base and the mill. The management is highly committed in maintaining the RSPO system by adopting to continuous improvement programs.

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

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

It is therefore the recommendation of the lead assessor that:

A certificate of compliance is maintained.

Signed: Name: Simon Selvaraj Date: 21 June 2013

4.2 Summary of the findings by Principles and Criteria

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

Identified Non-Conformities and noteworthy Positive and Negative Observations.

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

Principle 1: Commitment to Transparency

Criterion by Audit

Summary

Requests made by stakeholder were responded and well documented. Relevant documents are made publicly available. A major non-conformity was raised with regards to inadequate information in the requests and responses logbook.

MA 1.1 The mill and estates have a ‘Request and Responses’ logbook that records all requests made and the corresponding action that was taken. Records are maintained however action that taken to fulfill the request and acknowledgement by the person who made the request not effectively recorded in the logbook. ‘SOP 24 – Stakeholder Requests and Responses’ clearly states what needs to be done to handle any form of requests. All records are kept for at least seven years.

A Major NC was issued for “The current practice of the request and response mainly focus on day to day job related issues and the company fail to address, maintain constructively and promptly the requester’s information. Monitoring normally is the responsibility of the supervisor but how the measures undertaken to resolve complaints are not implemented and details of what sanctions can be imposed if there is further non-compliance with the agreed remediation not defined clearly”.





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MA 1.2 The following documents were made publicly available in the mill and estate offices:

Land titles / user rights

Safety and health plan

Plans and impact assessments relating to environmental and social impacts

Pollution prevention plans

Details of complaints and grievances / Negotiation procedures

Continuous improvement plan All these documents were sighted in the mill and estate offices. All requests for documents through the estate or mill offices will have to go through the mill or estate managers. They will make the decision as to whether the information can be shared to or viewed by the person requesting the information or document. The RSPO Master List of Documents stipulates the documents that can be made publicly available and documents that should be kept confidential.

Principle 2: Compliance with Applicable Laws and Regulations

Criterion by Audit

Summary

The mill and estates have demonstrated compliance to all applicable local, national and international laws. However a minor NC raised for expiry of diesel permit and a major NC for laboratory analysis of effluent test. Legal ownership of land and its land use is clearly demonstrated through the respective land titles. Boundaries have been clearly demarcated. There have been no land disputes or claims involving the mill and estates.

MA 2.1 The mill and estates have a register of all applicable laws and regulations and this includes among others:

OSHA and regulations 1994 (Act 514)

Factories and Machinery Act with regulations (Act 139)

Pesticides Act and Regulations (Act 149)

Poison Act and Regulations 1952 (Act 366)

Ministry of Trade.

Malaysia Palm Oil Board (MPOB) Regulations

Road Transport Act 1987 (Act 333)

Employees Social Security Act and Regulations (Act 4)

Food Act and Regulations (Act 281)

Industrial Relations Act and Regulations (Act 177)

Trade Union Act and Regulations

Employees Provident Fund Act 1991

Human Rights Commission of Malaysian Act.

Wetlands and climate Change 1999

The UN Convention on Biological Diversity

Stockholm Convention On Persistent Organic Pollutants (2001)

International Labour Organisation Convention 98(1949)

Aboriginal Peoples Act 1954 (Act 134)

Arms Act 1960

Children and young person (employment) act 1966

Commercial vehicles(Licensing Board Act 1987)

Electricity Supply Act 1990

Employment Act 1955

Immigration Act 1959/63

Internal Security Act 1960

Irrigation Areas Act 1953

Land and Conservation Act 1960

National Forestry Act 1984





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Environment Quality Act 1974

Estate Hospital Assistants (Registration) act 1965

Act 645 National Heritage Act 2005

Act 344 Police Act 1967

Anti-Corruption Act 1997

Act 133 Street, Drainage and Building Act 1974

Wages Councils Act 1974

Waters Act 1920

Workmen’s Compensation Act 1952.

Pesticides Act 1974

Destructions of Disease Bearing Insects Act

Employment Act 1955

Internal Security Act 1960

Employment Provident Fund Act

Drainage Works Act 1954.

Workers minimum Standards of Housing and Amenities Act 1990 Applicable permits and licenses for the mill and estates are clearly displayed in the respective offices. Records of expiry of these permits and licenses are kept in the office and monitored to ensure that they are renewed well before the expiry dates to ensure no lapses in the compliance to Malaysian government laws and regulations. The person responsible for monitoring the compliance to applicable laws and regulations are the respective estate and mill managers.

They are also responsible for the tracking of the changes in the laws and regulations. All operating units will also receive an official letter from the Personnel and Administration Department informing them regarding any changes or amendments in laws and regulations from time to time. Among the changes in the law is the implementation of the new minimum wage for plantations workers and it was determined through document review and interviews that these changes have been fully implemented in all estates and mills.

A Major NC was issued for “For effluent discharge, the test was conducted [in accordance to Environmental quality [Industrial effluent, regulation 2009] [ref # 50/12/02/620/PG/3.8 C] dated on 03/12/12 by in-house chemist from Penggeli Lab, however there is no evidence demonstrated that the result published was reviewed and remedy action taken for parameters that above the regulated requirement by D.O.E [COD and BOD]”.

A Minor NC was issued for “Diesel permit: Reference # PDNKKJ-JB/26/5A/11/251 [PD] [P1] that allocates for 16.380 litter annually. However the permit found expired and a letter been addressed to the authority dated on 01/12/12 which later that expired date. This interpreted that the management need enforcement in monitoring and identify an effective measure for the validity of legal documents at periodic time frame”.

MA 2.2 Estates keep the copies of all land title of settlers including respective maps. Sighted a legal ownership land title no: H.S. (M): 5566 named Felda Bukit Besar of total area 0.4958 Ha issued on 5 June 1969. Annual tax to be pay is RM249.00 per year. All settlers owned their land title, sighted :

Dated on 12 April 1988 plot no H.S.(M) 1369 under settlers named Yem B. Mahat (3167206)

Dated on 12 April 1988 plot no H.S.(M) 1372 under settlers named





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Alimah Binti Shawal (0698497)

Dated on 12 April 1988 plot no H.S.(M) 1368 under settlers named Ali B. Hassan(3443046)

A total of 12 boundary poles were placed surrounding the estate. The estate is adjoins with Penggeli Complex estate. Poles were marked and visible with numbers, sighted of poles -261/115, 261/178, 261/115, 130/286, 261/126, 152/892, 254/873, 129/833, 129/870, 129/654, 261/300. Estate also provided map to recognise the pole for easy tracking and maintenance.

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

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

Criterion by Audit Summary

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

MA 3.1 Annual budget for projection until 2015 was maintained. Budget cost of production been summarized by total planting area, total tonnes per hectare, cost per hectare and cost per tonnes. Budget also covered others expenses such maintenances of workers housing and office, drainage system, main road, event and others. Next replanting estimated on 2018. No replanting programme generate so far.

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

Criterion by Audit

Summary

The mills and estates have a complete set of SOPs which is being strictly adhered to and continuously monitored. Soil fertility is being maintained in the fields and erosion prevention is continuously carried out. IPM is being implemented in all the estates and the use of chemicals are in accordance with the regulations. There is a comprehensive OSH policy and is being implemented throughout the estate and mill. 3 minor non conformities were issued.

MA 4.1 The mill effectively documented its SOPs in place and these SOPs covers all mill operations from FFB reception right until mill effluent treatment and details the procedures of mill operation in an efficient and safe manner. The implementation of these SOPs is done through maintenance and record keeping of forms and data for, FFB incoming records, boiler smoke density records, sterilizer temperature and time records, steam flow record, water usage records, chemical test records, process control and production report and CPO stock inventory, spare parts inventory records and so on. Observed some procedure on Quality Management System, safety, occupational safety and environment. The record as below:-

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

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

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





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The estates have ‘Good Agricultural Practices’ which is their guide in ensuring efficient and optimal field operations. These SOPs cover all estate operations from nursery until delivery of FFB to the mill and includes among others land clearing, land conservation, distance of planting, field maintenance, pest control, fertilizer application and harvesting. Sighted SOPs are being reviewed periodically or if there is a new technique of operation being introduced. Observed records and data are kept for a period of seven years.

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

NPK Mg Granule is the only recommended fertilizer by FASSB. Records of fertilizer application includes of the amount used, total applied area, manpower and hectare per workers. The recent FASSB recommendation was in 2012. Record of EFB application is recorded by quantity and area involved. Estates effectively maintain the area maps of EFB application that initiated to control the erosion in the field.

MA 4.3 Practises of stacking oil palm leaf, EFB application and terracing to minimizing soil erosion in the estate were sighted during site filed visit. There are sufficient documented plans available for minimizing soil erosion. The EIA effectively identified the soil erosion. Management seen effectively practicing below policies:

No blanket spraying.

Terracing on slopes of 15 degrees and over.

L shaped frond management.

Establishment of Mucuna Bracteata.

Road maintenance and design to avoid steep gradients.

Estate does not apply pesticides at the risky area due to erosion. Cover crop planted to reducing bare soil, EFB application is carried out and stacking oil palm leaf.

A Minor NC was issued for “Estates don’t have a proper documented evidence included map of area and monitoring record for above activities”.

A Minor NC was issued for “No road maintenance programmes is generated. Estate road is maintained under JKKK with deduction from settlers payment by FELDA Techno plant office every month. No evidence of road maintenances is carried out”. A Minor NC was issued for “Slopes between roads have been sprayed with chemicals leaving exposed soils and erosion. Sg. Tampoi, even though there is buffer zones marked, that also sprayed along the buffer zones leaving it exposed for soil erosion”.

MA 4.4 Buffer zone is maintained 1 m alongside Tampoi River marked with ”blue ring” on the tree. No chemical activities are allowed in the buffer zone. Sample of river water tested. There are 2 sampling point for Tampoi River inlet and outlet. Water analysis conducted once a year by FASSB. Latest report sighted with dated on 10 October 2012 CA/06/07/02/19(01).

5 years of documented monitoring evidence of daily distributed rainfall [mm] with temperature and sunshine available. Water consumption record per ton





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FFB ratio has been maintained for every year to measure the performance of the mill.

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

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

MA 4.5 Rat been identified as a major pest. Estate maintained 20 units barn owl in the estate and census is done once in every 3 month. Sighted last census on 16/11/2012 found 18 units barn owl to be occupied. Record of areas pesticide used included number of block, total area and years planting available on daily basis. Monitoring usage of pesticide is available included chemical name, active ingredients, quantity of each chemical type, and grand total of pesticide, quantity of active ingredients per hectare and quantity per FFB. Sighted, Pesticide type a.i: Metsulfuron methyl (Ally) 135.27Kg used for 310.9 Ha equal to 0.435105 active ingredients per hectare.

MA 4.6 The mill and estates maintain a chemical register detailing the chemicals, its purpose and classification as per the classification, packaging and labeling requirements as per the Register of Chemicals Hazardous to Health stipulated in the USECHH 2000 regulations (regulation 5). There are 41 types of chemicals registered which mainly for the use of laboratory. All pesticides used are in accordance with the Pesticides Act 1974 (Act 149) and the relevant provision (Section 53A) and in accordance with USECHH Regulations (2000). Paraquat usage has been stopped since 2010.

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

These chemicals are stored separately in the chemical store. The chemical stores were found to be in good condition with the appropriate spillage traps filled with charcoal and empty bunch. First aid kits as well as shower and washing facilities are available. Annual Medical Surveillance for 2013 was done for all the sprayers, manuring gang, storekeepers and mill laboratory workers.

Medical surveillance records were sighted in the mill and estate offices. There are no pregnant workers who were handling pesticides in the estates. CHRA for the mill and estates were conducted and all recommendations of the CHRA were adhered to. The quantity of active ingredient of pesticides and herbicides used are recorded and are kept for at least 5 years.

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

A training programme in place for year 2012-2013. To have an indication of the planned trainings as for monitoring purposes. Sample: Training for fertilizing workers under OSH conducted on 17/04/2012 and 8 personnel attended. Record of PPE provided available for apron, shoes, mask, gloves, goggles and helmet on 01/04/2012.





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Safety meetings have been held 3 months once but daily briefing includes the main issues. This is the platform for raising safety issues. Accident and emergency SOP and instructions available. These are included in the safety manual for the estate.

All accidents are then investigated by a safety committee within 2 days. The number of days lost are recorded. Estate is effectively practicing OHSAS 18001 for safety & health. All workers are covered SOCSO insurance for local and Takaful Insurance for foreign workers. Sample: Baharuddin (AN523078) Indonesian worker insurance no: 201204230005.

MA 4.8 Training plan established based on the risk assessment on social, safety and environment. Training plan for year 2012 was 100% completed and verified training records evidence for 2012 and 2013 which as below:

Fire fighting training: 12/06/13.

Road Safety: 12/06/13

1st Aid & CPR training: 12/06/13.

CSDS training: 18/04/13.

Trainings conducted were recorded in the various trainings record books and it was complete with attendance records, training materials and photographs of the training. The mill and estates conducted trainings, among others, for:

The appropriate use of PPEs

First aid and fire drill

The implementation of SOPs for operations such as harvesting, pruning and manuring

Safe handling of chemicals and fuels

Hazard identification, risk assessment and control (HIRARC)

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

Criterion by Audit

Summary

Environmental Impact Assessment has been carried out by the mill and estates. A comprehensive identification of all waste has been recorded and disposal of scheduled waste has been carried out by an approved and registered collector. Monitoring and analysis of waste is carried out regularly. A major NC was found in regards to SIA.

MA 5.1 The mill and estates have conducted their Environmental Impacts Assessment (EIA) for 2013. The EIA details the environmental impacts of operations and new activities as well as plans to mitigate any negative impacts should there be any. EIA last reviewed by Mill Manager on June 2013. Format used that inclusive of criterion such as legal, scale, severity, change, damage etc.

The EIA is sighted for “Medium” rating for sterilisation process, depericarpering, boiler house, steam turbine, workshop and chemical storage room. In general the format is made specific enough the details on where, what, when, how, why and who.

The impacts from estate operations, which covers land preparation and clearing (if any) right up till the delivery FFB to the mill is assessed through stakeholder consultation. The impacts from mill operations from reception of FFB in the mill right up till effluent treatment is also assessed in the similar way.

There are 16 Environmental Management Programes developed. Among the programmes, the concentration is given to legal compliances, such as schedule waste disposals, stack emission monitoring and domestic waste management. Verified Dust Emission Monitoring report that compliance to MS 1596:2003 guidelines, dated 03/05/13 CK/MO407/231(v) – 1/13.





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

MA 5.2 The HCV assessment has identified 2 HCV areas, namely the riparian zone of a river and community area with some fruit trees. Site visit to estate evidenced of sign boards are in place for buffer zone and “No Hunting or fishing.

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

MA 5.3 Waste and pollution mapping identifies domestic house hold wastes, agrochemical containers, used oil, battery, spoiled light, filter, clinical waste and so on. The mill and estates have procedures on how to handle wastes and their storage. The scheduled wastes handling and storage is handled in accordance to the Scheduled Wastes regulations 2005.

There are sufficient wastes collecting bins mill wide that enable employees to dispose the waste according to the label [glass, paper, plastic].Verified the Jadual 2[notification to DOE], 5[inventory of schedule waste] & 6 [consignment note] with proper records maintained. “Notis Arahan” from DOE on schedule waste maintained dated 05/06/2013. E-consignment note [Jadual 6] sighted for SW305.

Schedule waste inventory [Jadual 5] verified for SW305, SW306, SW409 and SW102.A logbook is used to record all waste generated. Shell and fibers are recycled in the mill. Domestic waste goes to landfill. EFB is being sent to the estates for mulching. Decanter solids and POME are also being applied in the field. The recycle programme term into 3R where used PPE, waste paper and plastics being incorporated into mitigation plan.

MA 5.4 The mill is not connected to the Malaysian electricity system. All energy is generated by the company itself via a boiler and gensets. Fossil fuel used for the gensets and turbine. Total FFB produced [MT] from Oct 2011 – May 2012 was 85’871.70 and the consumption is 24.01 KWhr/t FFB. The renewable energy usage for the mill is in the form of fibre and shell usage. The non-renewable fuel used by both mill and estates are petrol and diesel.

A complete mapping of baseline value established, where the monitoring focus on fibre [MT], FFB processed, CPO produced and the linkage to fuel consumption. Monitoring every month and the figures will be compiled at the end of every year. i.e.: BB POM record 148,943 Litre diesel is used in January to November 2012 for processing 108,850 MT FFB equal to 1.37 litre/MT.

MA 5.5 Sighted a memo dated [138/840/4051/J3/31] dated on 11/10/2010 from Felda Palm Industries for the open burning policy enforcement. No opening burning evidence observed during site visit to mill and estates. Sighted a letter from Department of Environment Johor whom enforcing the policy of not having any open burning as well to increase the patrolling interval during dry season.

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





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

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

Criterion by Audit

Summary

The mill and estates have conducted the social impact assessment; however there was no evidence that participatory methods were used to conduct the SIA. The relevant policies are in place and are fully implemented across the board. Communication and consultation as well complaints and grievances procedure are well communicated and adhered to. There are no evidence of workers been discriminated against in any way and all are being paid their fair wages. The workers quarters at estate were up to living standards and the gender committee addresses issues specific to women’s needs. For this principle, there were 2 major and 4 minor non conformities issued.

MA 6.1 The mill and estates have conducted their Social Impacts Assessment for 2013. The SIA details the impact of operations and new activities to the social well-being of the workers and the community and steps that need to be taken to reduce any negative impacts should there be any. The assessment was conducted through stakeholder meetings held by the mill and estates with all their stakeholders.

Any negative impacts from the assessment will be mitigated within a specified time-frame. The SIA is updated on an annual basis to take into account the changes and new activities that have taken place within that time-frame.

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

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

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

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

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

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

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

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

MA 6.3 The mill and the estates have a complaints and grievances procedure that serves as the SOP for handling of complaints and grievances from both internal and external stakeholders. This procedure has been displayed in the





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offices and also on notice boards around the mill and estates. A complaint and grievances logbook is kept in every mill and estate and it contains the details of the complaints made, the complainant or aggrieved party, the action taken to resolved the complaint or grievance and the date the action was taken.

All complaints and grievances were promptly attended to and records of this were sighted in the mill and estate offices. Workers who were interviewed confirmed that they are aware of the complaints and grievances procedure and how to channel their grievances.

A Major NC was issued for “The documented complaints and grievances procedure was not available at the time of audit as it was found missing from the RSPO file [hard cover]. However the later presented procedure found not effectively describes the time line to solve if there would be any complaints or grievances. The procedure also seen not mentioning on complaints or grievances by third parties”.

MA 6.4 History and documents of the development of Bukit Besar Complex under Felda do not show any evidence that there was a loss of legal or customary rights which would have lead to a necessary, consequent compensation or that any compensational claims would be open and/or evident. No negotiations concerning compensation for loss of legal or customary rights are as per this assessment period.

A Major NC was issued for “A documented system that enables indigenous peoples, local communities and other stake holders to express their views through their own representative institutions is not available. No method identified for any negotiations concerning compensation for loss of legal or customary rights”.

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

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

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

MA 6.6 The company has conducted meeting with labour union once a year. The last meeting with labour union on 12.10..2012, attended by 5 representative of labour unions and discussed 4 issues, such as: rubbish collection, discipline, discipline and performance, pay and bonus etc. Weekly assembly noted as a ground for discussions on arising issues.

A Minor NC was issued for “The policy of freedom association statement mentioned clearly in policy of “the right of freeedom association of employees” Policy publicly displayed in office and at line-site. However, the key word of “the rights to collectively bargaining” is not evident”.





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MA 6.7 Felda has a Child Employment Policy that prohibits under-aged children from working in the company. All mill and estate adhere to this policy. There are no children below ages of 16 working in the mill or estates and this was proven through the checking the list of employees as well as their bio-data and through field visits.

A Minor NC was issued for “Children are not employed or exploited. However, the is the conflict of minimum age indicator, in FPI edition 2002 Syarat-syarat Perkhidmatan minimum age is 18, at the Bukit Besar POM is 17 and Malaysian Labour entitled for 16 years old”.

MA 6.8 Felda has an Equal Opportunity policy dated 1 January 2008 and signed by the regional Director that is clearly displayed in the office and on the notice boards around the estates and mill. Both local and foreign workers enjoy the same scale of pay and provided with equal housing and work facilities. This was confirmed though interview with workers from both the mill and estates and also through verification of contracts of service and pay slips of workers. No evidence of discrimination based on race, skin colour, religion, gender, national origin, ancestry, disability, marital status, and sexual orientation was found in both the mill and estates.

MA 6.9 The Company has policy regarding sexual harassment and violence & reproductive rights [ML-1A/L2-PO11 (0) dated March 2012 seen displayed at all estates and mill. This policy has also been communicated to all staff and workers and this was evident through the training records. Gender committees have been established in the mill and both the estates. A specific grievance mechanism for workers to voice their grievances with regards harassment of a sexual or violent nature has been established.

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

A Minor NC was issued for “A grievance mechanism procedure not evident. 4 women work in mill, but the management fails to incorporate a committee to specifically address concerns of women on matters such as; training on women’s rights, counselling for women affected by violence. Nor the activities of the committee should be documented”.

MA 6.10 Pricing is followed by actual MPOB pricing system as well from the on-line system from Felda HQ. A daily review and update does guarantee a clear and transparent procedure with relevant records made available during audit. Sighted the FFB price lists displayed at the mill’s weighbridge as well in the mill’s notice board for public information. Seen the price list dated on 06/12/12 tagged at RM 20.50 @ 1% @ MT for internal FFB and RM 18.60 for external FFB. As Felda has no intervention with settlers, therefore any contract agreements with contractors dealt by District Office [Wilayah].

MA 6.11 Activities at all assessed operations do prove that Felda Management does contribute to a local sustainable development. Ex: Tadika, Gifted Children, School.

A Minor NC was issued for “The records of CSR such as Donation for Festival Celebration [hamper] were conducted. However it is found that the contribution is not ddemonstrable contributions to local development that are based on the results of consultation with local communities”.





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Principle 7: Responsible Development of New Plantings

Criterion by Audit

Summary There were no new plantings carried out above table on planting age denotes re-planting.

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

Criterion by Audit

Summary

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

MA 8.1 As most chemicals used are for laboratory purposes and the volume is very much less, therefore there is no plan established for reduction in use of certain chemicals. As for environmental impacts, there are 9 activities plan the whole 2013 with monthly monitoring matrix documented. Waste reduction is tabulated along with environmental pollution minimization programme. Water management plan are documented. An average per month of 23’380 of water usage [MT], 12’078.71 [MT] FFB processes and 2.17 MT H20 / MT are recorded.

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

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

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

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

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





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4.3.1 Non-Conformities Identified during this Audit

NON CONFORMITY REPORT

NC number: 01

Client name: PSQM Department FGVPM-

Date raised: 05/12/2012

Major or Minor: Major

Raised by: Simon

Aspect of standard: Criterion: 1.1.1

Records of requests and responses must be maintained.

Evidence of non-conformity:

The current practice of the request and response mainly focus on day to day job related issues and the company fail to address, maintain constructively and promptly the requester’s information. Monitoring normally is the responsibility of the supervisor but how the measures undertaken to resolve complaints are not implemented and details of what sanctions can be imposed if there is further non-compliance with the agreed remediation not defined clearly. Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. A log book has been established, that inclusive of date, person who lodge the complaint, nature of complaint, responsible person at receiving compliant, action taken, date of complaint sorted and other remarks. All feedbacks, complaints and request through mailing, phone, email or fax will also recorded in the same log book.

Timeline for conformance: 60 Days

Review of corrective /improvement action: Corrective action accepted and will be verify during next assessment.

Assessors signature:

Date: 08/05/2013


NC number: 02




Raised by: Simon


Evidence of compliance with relevant legal Indicators.


For effluent discharge, the test was conducted [in accordance to Environmental quality [Industrial effluent, regulation 2009] [ref # 50/12/02/620/PG/3.8 C] dated on 03/12/12 by in-house chemist from Penggeli Lab, however there is no evidence demonstrated that the result published was reviewed and remedy action taken for parameters that above the regulated requirement by D.O.E [COD and BOD]. Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. The evidence of effluent result was reviewed and a mitigation measure to monitor the BOD & COD was established.




Date: 08/05/2013





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NC number: 03




Raised by: Simon

Aspect of standard: 5.1.1

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


There is no evidence that the stakeholders have been consulted and not all impact has been documented. The result is not rather unclear nor action taken to mitigate the impact identified. No follow up plan to monitoring the negative impact in the EIA. Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. Mill and estates has re-evaluated of their EIA and reviewed with linkage to final summary.




Date: 08/05/2013


NC number: 04

Client name: Felda Global Venture -



Raised by: Simon

Aspect of standard: 6.3.1 & 6.3.2 & 6.3.3

Documentation of the process by which a dispute was resolved and the outcome. The system resolves disputes in an

effective, timely and appropriate manner. The system is open to any affected parties


No procedure available or shown at the time of audit. The company not stated time to solve it and system was found to be open for only to workers only. Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. The procedure was missed placed during audit and it was filed into respective folder. Mill and estate has established a complaint box. Also meeting has been conducted on 09/01/2013 as to ensure stakeholders are clear on how to arise a complaint.




Date: 17/07/2013





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NC number: 05

Client name: Felda Global Venture Bhd -



Raised by: Simon

Aspect of standard: - 6.4.1

Establishment of a procedure for identifying legal and customary rights and a procedure for identifying people entitled to

compensation


A documented system that enables indigenous peoples, local communities and other stake holders to express their views through their own representative institutions is not available. No method identified for any negotiations concerning compensation for loss of legal or customary rights. Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. A procedure been established to handling if have any customary right sighted. Date on the Mac 2012.




Date: 22/07/2013


NC number: 06



Major or Minor: Minor

Raised by: Simon


Evidence of compliance with relevant legal Indicators.


Diesel permit: Reference # PDNKKJ-JB/26/5A/11/251 [PD] [P1] that allocates for 16.380 litters annually. However the permit found expired and a letter been addressed to the authority dated on 01/12/12 which later that expired date. This interpreted that the management need enforcement in monitoring and identify an effective measure for the validity of legal documents at periodic time frame. Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. With immediate effect, a circular will be release on annual basis on informing of all applicable permits / licenses expiry dates.

Timeline for conformance: Next surveillance audit

Review of corrective /improvement action: Corrective action accepted.


Date: 11/07/2013





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NC number: 07

Client name: Felda Global Venture Bhd-



Raised by: Simon


Documented evidence of practices minimizing soil erosion and degradation (including maps).

Evidence of non-conformity: -

Estates don’t have a proper documented evidence included map of area and monitoring record for above activities . Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. A field map with soil type and erosion monitoring record established.


Review of corrective /improvement action: Will verified again next surveillance audit.


Date: 16/07/2013


NC number: 08

Client name: Felda Global Venture Bhd -



Raised by: Simon


Presence of road maintenance programme.


No road maintenance programmes is generated. Estate road is maintained under JKKK with deduction from settler’s payment by FELDA Techno plant office every month. No evidence of road maintenances is carried out. Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. Road maintenance programmes for 2012 – 2013 been established with concerns from settlers.




Date: 21/05/2013





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NC number: 09




Raised by: Simon


Avoid or minimize bare or exposed soil within estates. Appropriate conservation practices should be adopted. Use of

herbicides. Consider with 4.3.1


A Minor NC was issued for “Slopes between roads have been sprayed with chemicals leaving exposed soils and erosion. Sg. Tampoi, even though there is buffer zones marked, that also sprayed along the buffer zones leaving it exposed for soil erosion. Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. Sufficient trainings, information and meetings held to enhance the importance of buffer zones.




Date: 04/07/2013


NC number: 10




Raised by: Simon


[The employer respects the right of all personnel to form and join trade unions of their choice and to bargain collectively.

Where the right to freedom of association and collective bargaining are restricted under law, the employer facilitates

parallel means of independent and free association and bargaining for all such personnel.] A published statement in local

languages recognizing freedom of association


The policy of freedom association statement mentioned clearly in policy of “the right of freeedom association of employees” Policy publicly displayed in office and at line-site. However, the key word of “the rights to collectively bargaining” is not evident. Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. The key word of “the rights to collectively bargaining” is added in the policy.

timeline for conformance: Next surveillance audit



Date: 11/05/2013





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NC number: 11




Raised by: Simon

Aspect of standard: - 6.7.1

Documentary evidence that minimum age Indicator is meeting.

Evidence of non-conformity: -

Children are not employed or exploited. However, the is the conflict of minimum age indicator, in FPI edition 2002 Syarat-syarat Perkhidmatan minimum age is 18, at the Bukit Besar POM is 17 and Malaysian Labour entitled for 16 years old” . Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. All the related documents been aligned to 17 years old.




Date: 08/05/2013


NC number: 12




Raised by: Simon


A specific grievance mechanism is established.


A Minor NC was issued for “A grievance mechanism procedure not evident. 4 women work in mill, but the management fails to incorporate a committee to specifically address concerns of women on matters such as; training on women’s rights, counselling for women affected by violence. Nor the activities of the committee should be documented”. Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. Mill has conducted a gender meeting and addressed issues as highlighted above. This meeting will be at planned interval.




Date: 12/07/2013





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NC number: 13




Raised by: Simon


Demonstrable contributions to local development that are based on the results of consultation with local communities.


A Minor NC was issued for “The records of CSR such as Donation for Festival Celebration [hamper] were conducted. However it is found that the contribution is not ddemonstrable contributions to local development that are based on the results of consultation with local communities”. Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. Mill has organized an official consultation programme as to justify the findings. Timeline for conformance: Next surveillance audit



Date: 05/08/2013

4.3.2 Non-Conformity Identified during the last ASA

This is main assessment

4.3.3 Observations Raised During this Audit

Not raised

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

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

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

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

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

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

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

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

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

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

Assessment Findings above or noted below, if applicable:

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

2. What is your relation with the applicant?

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

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

5. Do you have any suggestions for management?

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

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

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

9. Additional comments?





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

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

Subject raised Company response and proposed action to be taken

Audit team findings

No Comments Received - -

PART 5: RSPO SUPPLY CHAIN CERTIFICATION

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

5.1 POM Included In The Scope Of The Audit

Name Palm Oil Mill

Mill Capacity

Location Supply Chain Model

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

BUKIT BESAR POM 30 W/P Bukit Besar. 81450 Kulai Johor

MB

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

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

CU Code

POM 1 22,228.50 5,876.50 Forecasted volumes between August 2013 to July 2014. See also 1.6 above.

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

Mill is certified to ISO 9001, EMS 14001 and OHSAS 18001 and has standard operating procedures (SOP) under Mill Quality Management System. Mill is operated with 30 MT/hr. The information is directly recorded in computer system and each delivery is individually recorded. A summary of daily incoming FFB shows the total quantity FFB received from both from FELDA plantation and outsider crop. FFB price is displayed at the weighbridge and OER and KER calculation is based from HO in Kuala Lumpur. After CPO and PK (as products) extracted from FFB, CPO is going to 2 storage tank capacity 1800 MT each and PK is going to 4 kernel silo. Products will despatch by instruction from HO. Mill is still under preparation stage to received certified FFB and training for RSPO is under 2013 programme.

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

Recommendations made: Yes

Summary of non-compliances:

None Found

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





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PART 6: CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

6.1 Date of next ASA

The provisional date for the next ASA is: Between 9-12 months from RSPO approval of this main assessment report

6.2 Date for Closure of Non-Conformities

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

All major NCs to be closed by: 20 August 2013

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

6.3 Signing by the Client

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

Acceptance of liability in execution of the instructions given.

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

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

Acknowledged by:

Name: NORAZAM ABDUL HAMEED

Position: GENERAL MANAGER PSQM DEPARTMENT

Date: 18.10.2013 Signature

6.4 Signing by the Lead Auditor

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

Acknowledged by:

Name: Simon Selvaraj

Position: Lead Auditor

Date: 30 Sept 2013 Signature

6.5 Signing by the Certifier

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

Acknowledged by:

Name: Hari Naveen Christopher

Position: Certifier

Date: 30th December 2013 Signature





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PART 7: APPENDICIES

Appendix 1: Location Map for this Certification Unit

From 1.9, the location map(s)





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Appendix 2: List of Abbreviations

BRC British Retail Consortium

BOD Biochemical oxygen demand

CHRA Chemical Health Risk Assessment

CoC Chain of Custody

COD Chemical oxygen demand

CPO Crude Palm Oil

CSR Corporate Social Responsibility

CU Control Union

CUC Control Union Certifications

DOE Department of Environment

DOSH Department of Safety and Health

EFB Empty Fruit Bunch

EIA Environment Impact Assessment

ERT Endangered Rare or Threatened species

EU European Union

FFB Fresh Fruit Bunch

FSC Forest Stewardship Council

FSC COC Forest Stewardship Council Chain of Custody

FSC FM Forest Stewardship Council Forest Management

GGL Green Gold Label

GMP Good Manufacturing Practice

GOTS Global Organic Textile Standard

GTP Good Trading Practice

GPS Global Positioning System

HACCP Hazard Analysis and Critical Control Point

HIRARC Hazard Identification, Risk Assessment and Risk Control

HCV High Conservation Value

HCVF High Conservation Value Forest

IPM Integrated Pest Management

JAS Japanese Agricultural Standard

LTI Lost Time Injury

MDC MDC Publishers Sdn Bhd ( Company Name)

MSDS Material Safety Data Sheet

NC Non Conformity

OE Organic Exchange

OSH Occupational Safety and Health

OSHAS Occupational Safety and Health Assessment Scheme

P&C Principle and Criteria

PEFC Programme for the Endorsement of Forest Certification

PK Palm Kernel

POME Palm Oil Mill Effluent

PPE Personal Protective Equipment

RSPO Roundtable on Sustainable Palm Oil

RSPO NI Roundtable on Sustainable Palm Oil National Interpretation

SA8000 Social Accountability 8000

Sdn Bhd Sendirian Berhad

SIA Social Impact Assessment

SOCSO Social Security Organization

SOP Standard Operating Procedure

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

MT Metric Tones

WHO World Health Organization