rspo audit report

RSPO Principles & Criteria Main Assessment Report

Report Number CU826923

RSPOPC-SUM-REPORT.F01 JULY2013 of 42

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

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RSPO PRINCIPLES & CRITERIA PUBLIC SUMMARY REPORT

MAIN ASSESSMENT

Malaysia

FELDA KULAI PALM OIL MILL 2014

Report prepared by: Simon Selvaraj (Lead Assessor)

Certification decision by: Hari Naveen Christopher (Certifier)

Certifying Office

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

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

Tel: +603-3377 1600 / 1700

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

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

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

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

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

obtained from CUC.

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

RSPO Approval Date 12/01/2006

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

mailto:[email protected]

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





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Table of Contents

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

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

1.7.1 Location of the Supply Base................................................................................................................................. 4 1.7.2 Statistics of the Supply Base and Estimated Tonnes of FFB produced per year ................................................. 4 1.7.3 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 ....................................................................................................................................................... 15

3.1 ABOUT THE CERTIFICATION BODY ......................................................................................................................................... 15 3.2 AUDIT TEAM ..................................................................................................................................................................... 15

3.2.1 Qualifications of the Lead Auditor ............................................................................................................................... 15 3.2.2 Qualifications of the Assessment Team....................................................................................................................... 16

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

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

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

Principle 1: Commitment to Transparency .......................................................................................................................... 20 Principle 2: Compliance with Applicable Laws and Regulations .......................................................................................... 21 Principle 3: Commitment to Long-Term Economic and Financial Viability .......................................................................... 22 Principle 4: Use of Appropriate Best Practices by Growers and Millers .............................................................................. 23 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 ..................................................................................................... 31 Principle 8: Commitment to Continuous Improvement in Key Areas of Activity .................................................................. 31

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 ........................................................................................................... 32 4.3.2 Non-Conformity Identified during the last ASA .......................................................................................................... 38 4.3.3 Observations Raised During this Audit ....................................................................................................................... 38

4.4 ISSUES THAT WERE RAISED DURING THE STAKEHOLDER CONSULTATION, IF ANY ............................................................................ 38

PART 5: RSPO SUPPLY CHAIN CERTIFICATION ....................................................................................................................... 39

5.1 POM INCLUDED IN THE SCOPE OF THE AUDIT......................................................................................................................... 39 5.2 CONFIRMATION OF THE COMPANY’S SUMMARY OF ANNUAL CERTIFIED VOLUME OF RSPO CERTIFIED PALM OIL AND PALM KERNEL

OVER A SPECIFIED PERIOD ............................................................................................................................................................... 39 5.3 SUMMARY REPORT INCLUDING A BRIEF DESCRIPTION OF THE SCOPE OF CERTIFICATION................................................................. 39 5.4 FINAL CERTIFICATION DECISION BY CONTROL UNION FOR THE RSPO SCCS AUDIT OF THE POM ...................................................... 39

PART 6: CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY ................................................. 40

6.1 DATE OF NEXT ASA ............................................................................................................................................................ 40 6.2 DATE FOR CLOSURE OF NON-CONFORMITIES .......................................................................................................................... 40 6.3 SIGNING BY THE CLIENT ....................................................................................................................................................... 40 6.4 SIGNING BY THE LEAD AUDITOR............................................................................................................................................ 40 6.5 SIGNING BY THE CERTIFIER ................................................................................................................................................... 40

PART 7: APPENDICIES............................................................................................................................................................ 41

APPENDIX 1: LOCATION MAP FOR THIS CERTIFICATION UNIT ................................................................................................................ 41





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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: C826923CU-RSPO.01.2014

Start Date Of Certificate: 14/04/2014

End Date Of Certificate: 14/04/2019

Date Of Original Certification: 14/04/2014

Scope: Certification of the Palm Oil Mill and Supply Bases

Type Of Certification: Single site

Duration Of Certificate: 5 Years from date of certification

1.3 Main Assessment Details

Dates Of This Audit: 03 – 07 December 2012

Audit Number: Main

1.4 Assessment Type

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

1.5 Location of the Palm Oil Mill

Name Palm Oil Mill

Mill Capacity

Location GPS Reference

(POM) MT/Hour Address Longitude Latitude

FELDA KULAI POM 30 Kilang Sawit Kulai, Felda Taib Andak, 81000, Kulai, Johor.

103 ͦ39’ 0.00”E 1 ͦ44’ 0.00”N

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

134,250 26,952 7,272 137,760 27,552 7,990 123,740 25,230 7,115

mailto:[email protected]

http://www.feldaglobal.com/





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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.

1.7 General Description of Supply Base

Kulai POM and supply bases owned by the Felda Global venture. The mill receiving 100 % of crops from the own estate, Detail of supply base 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 Taib

Andak Pejabat Felda Taib Andak, 81000 Kulaijaya, Johor.

103°46' 52" U 1° 29' 14" T 3,202 2,991

OPP 2 Felda

Bukit Batu Pejabat Felda Bukit Batu, 81020 Kulaijaya, Johor.

103°26' 21" U 1° 42' 12" T 1,425 931

OPP 3 Felda Ulu

Tebrau Pejabat Felda Ulu Tebrau, 81810 Ulu Tiram, Johor.

103°45' 25" U 1° 38' 13" T 2,784 2,648

OPP 4 FAS Taib Andak

Pentadbiran Benih, Stesen FASSB Bukit Besar, 81000 Kulaijaya, Johor

1° 29' 14" T 103°46' 52" U 120 119

TOTAL 7,531 6,691

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 & FTPSB Taib Andak 43,530 1990-2005 25 years

OPP 2 Felda & FTPSB Bukit Batu 58,960 1990-2005 25 years

OPP 3 Felda & FTPSB Ulu Tebrau 20,690 1990-2005 25 years

OPP 4 FAS Taib Andak 560 1990-2005 25 years

TOTAL 123,740

1.7.3 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

4 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 with

applicable law.

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

Yes

2.3.3 Have there been any changes since the last

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

Yes





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audit? Are they justified?

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

No changes identified Yes

2.3.5 Have there been any stakeholder comments?

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

Yes

2.3.6 Have there been any newly acquired subsidiaries?

Nil Yes

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

No lapses. Yes

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

Nil. Yes

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

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

Yes

2.4 Un-Certified Units or Holdings

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

Section Requirement Findings and any action required Compliance

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

Yes. Yes

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

Primary forest.

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

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

No replacement of primary forest and HCV. Yes

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

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

Yes

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

None noted. No stakeholder comments or complaints received.

Yes





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Settlement Facility, in accordance with RSPO criteria 6.4, 7.5 and 7.6.

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


Yes

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


Yes

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

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

4 Jengka 3 Malaysia

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

2010 Certified 13.12.2012 CUC

5 Jengka 8 Malaysia

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






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6 L. Utara 4 Malaysia

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


7 Jengka 18 Malaysia

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


8 Padang Piol Malaysia FTP Padang Piol FTP Sg. Retang


9 Segamat GC Malaysia 2010 Certified 13.06.12 Sirim. Suspended.

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

2011

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

11 Lok Heng Malaysia

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

2011

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

12 Semenchu Malaysia

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

2011 Certified 25.07.2012 SGS

13 Waha Malaysia

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

2011 Certified on 21.05.2012 Agrovet

14 B. Kepayang Malaysia

FP Terapai 3 FTP Kepayang FTP Mayam FTP Kumai

2011 Certified 7.01.2013 Sirim

15 Bukit Mendi Malaysia

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

2011 5.10.2012 Moody

16 Kemasul Malaysia FP Mengkarak 1 2011 Certified





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FP Mengkarak 2 FTP Kemasul

17 Tementi Malaysia

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

2011

Approve by RSPO Certificate not yet issue. By Sirim

18 Palong Timor Malaysia

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

2012 2013

19 Triang Malaysia

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

2012 Certified

20 Belitong Malaysia

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

2012 Audit 2012

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

2012 Audit in 2012

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

2012 Audit 2012

23 Kulai Malaysia

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

2012 Audit in 2012

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

2012 Audit 2012

25 Penggeli Malaysia

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

2012 Audit in 2012





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F Ulu Penggeli

26 Baiduri Ayu Malaysia

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

2013 2013

27 Embara Budi Malaysia

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

2013 2014

28 Kembara Sakti Malaysia

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

2013 2014

29 L. Kemudi Malaysia

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

2013 2014

30 Bukit Sagu Malaysia

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

2013 Audit 2012

31 Lepar Hilir Malaysia

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

2013 Audit 2012

32 Neram Malaysia

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

2013 2014

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

2013 2014

34 M. Puspita Malaysia

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

2014 2014

35 N. Permata Malaysia FP Sahabat 50 2014 2015





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FP Sahabat 51 FP Sahabat 52

36 Tersang Malaysia

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

2014 2017

37 Besout Malaysia

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

2014 2014

38 Sg Tengi Malaysia

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

2014 2014

39 Trolak Malaysia

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

2014 2014

40 Keratong 2 Malaysia

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

2014 2014


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

2014 2014


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

2014 2013

43 Selancar 2A Malaysia

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

2015 2015

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

2015 2015

45 Pasoh Malaysia FTP Pasoh 1 2015 2015





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

46 Serting Malaysia

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

2015 2015

47 Serting Hilir Malaysia

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

2015 2013

48 Krau Malaysia FP Krau 2 FP Krau 4

2015 2015

49 Mempaga Malaysia

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

2015 2015

50 Maokil Malaysia

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

2015 2013

51 Selendang Malaysia

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

2015 2016

52 Tenggaroh Malaysia FP Tenggaroh 9 FP Tenggaroh 11

2015 2013





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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

53 T. Timor Malaysia

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

2015 2013

54 Chalok Malaysia

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

2016 2016

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

2016 2016

56 J. Baru Malaysia

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

2016 2016

57 Kertih Malaysia

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

2016 2016

58 F. Harapan Malaysia

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

2013 2013

59 H. Badai Malaysia

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

2016 2015

60 J. Bistari Malaysia

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

2016 2016

61 Kalabakan Malaysia FP Kalabakan Tengah 1 FP Kalabakan Tengah 2

2016 2016





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FP Kalabakan Utara 1 FP Kalabakan Selatan 1

62 Umas Malaysia

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

2016 2016

63 Sampadi Malaysia

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

2017 2017

64 Aring A Malaysia

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

2017 2017

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

2017 2017

66 Ciku Malaysia

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

2017 2017

67 Kechau Malaysia

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

2017 2013

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

2017 2013

69 Kemahang Malaysia

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

2017 2017

70 Cini 2 Malaysia FTP Cini 1 FTP Cini 2

2017 2017

71 Cini 3 Malaysia

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

2017 2017





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F Chini Timur 3 F Chini Timur 1 FP CINI TIMUR 04

72 Air Tawar Malaysia TBD 2017 2017

73 PT Citra Niaga Perkasa

Indonesia TBD TBD Recently completed the NPP in 2013

2.5 Summary of the findings for Partial Certification

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

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

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 Completed ISO 9001:2008 lead auditor course in July





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auditors course; 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 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


Muhd. Jamalul Arif Undergraduate in plantation background. Involved in RSPO auditing since 2010 and





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use. experience in similar auditing field in GMP B2 and Global Gap.


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 &

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).









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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.





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.





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

3.3.2 Assessment agenda for this Audit

Date Location Auditors Main activities

03/12/2012 [Mon]

Penggeli POM Office

Simon

08.30 Opening meeting- Centralized Chaired by the audit team leader

Introduction by team leader

Presentation by respective managers

Presentation of POM source of FFB by respective managers

05/12/2012 (Wed)

Kulai POM

Simon Rizal

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

Workshops

Stores

POM application

Document review Field operations.

Worker interviews

Chemical stores

Workshops

Housing

Medical

Schools

Local communities

Environmental

06/12/2012 [Thur]

Felda Taib Andak

Rizal Mahas

Field operations

Worker interviews

Housing

Medical

Schools

Local communities

Environmental

Ulu Tebrau

Jamal Selva

Field operations.

Worker interviews

Chemical stores

Workshops

Housing

Medical

Schools

Local communities

Environmental

07/12/2012 [Fri]

Penggeli POM Office

All auditors

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

Welcome and introduction by the team leader

Presentation of findings by the audit team

Questions and answers & Final summary by team leader

End of assessment





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PART 4 ASSESSMENT FINDINGS

4.1 Lead Assessor’s Summary and Recommendation for Certification

The mill and supply bases were visited (as per the above Tables 1.5 and 1.7.1) and were assessed at field, office, facilities, stores and document reviews were carried out in accordance to the RSPO principles and criteria. This assessment was carried out together with 2 others facilities under FELDA. Common systems were identified and specific evidence was recorded for individual estate and mill. Interviews with Estate / Scheme Managers, Mill Manager, members of workers union and committee took place in both formal and informal environments and worker interviews were conducted at the supply base and the mill. The management is highly committed in maintaining the RSPO system by adopting to continuous improvement programs.

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

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

It is therefore the recommendation of the lead assessor that:

A certificate of compliance is maintained.

Signed: Name: Simon Selvaraj Date: 21 June 2013

4.2 Summary of the findings by Principles and Criteria

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

Identified Non-Conformities and noteworthy Positive and Negative Observations.

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

Principle 1: Commitment to Transparency

Criterion by Audit

Summary Requests made by stakeholder were well documented. Relevant documents are made publicly available.

MA 1.1 Records of all requests for information are maintained. Records of responses to those requested are maintained with action taken, dates and persons involved. The above records are maintained for a minimum period as defined by the company in the master list. Sighted records of meetings, requests for information and responses are maintained as per stakeholder consultation log book/requests and response log book. Each book also contains an example of how to handle and record a request.

MA 1.2 Publicly available documents are ranging from key indicators of performance such as waste management, schedule waste management plan on plantations and in mill. Applicable legal, social and environmental requirements. other Current and past FFB prices also made publicly available. The process and outcome of any compensation claims are documented and are also made publicly available. Commercially sensitive documents are not available as verified by the audit team.

Observed the Land Title for the mill “Surat perjanjian between Felda and Felda Agriculture Services” dated on 1996 was verified. OSH documents are available e.g: SOP kerja Selamat and Manual Keselamatan dan Kesihatan. Hazard identification and risk assessment covers all the related operation





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matter. All requests for documents through the estate or mill offices will have to go through the mill or estate managers. 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 seen not fully compliance to all applicable local, national and international laws as non-conformities were issued at respective criterion. Legal ownership of estate land and its land use is clearly demonstrated through the respective land titles. Sufficient records available at mill for demonstrating their land ownership. Boundaries have been clearly demarcated. There have been no land disputes or claims involving the mill and estates.

MA 2.1 All laws and regulations is maintain in “List of Laws and Regulations list” was revised on 5 Mac 2012. The person responsible for monitoring the compliance to applicable laws and regulations are the respective estate and mill managers.

Sighted some of the applicable laws and regulations:

OSHA and regulations 1994 (Act 514)

Factories and Machinery Act with regulations (Act 139)

Pesticides Act and Regulations (Act 149)

Poison Act and Regulations 1952 (Act 366)

Ministry of Trade.

Malaysia Oil palm Board (MPOB) Regulations

Road Transport Act 1987 (Act 333)

Employees Social Security Act and Regulations (Act 4)

Food Act and Regulations (Act 281)

Industrial Relations Act and Regulations (Act 177)

Trade Union Act and Regulations

Employees Provident Fund Act 1991

Human Rights Commission of Malaysian Act.

Wetlands and climate Change 1999

The UN Convention on Biological Diversity

Stockholm Convention On Persistent Organic Pollutants (2001)

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

International Labour Organisation Convention 98(1949)

Aboriginal Peoples Act 1954 (Act 134)

Arms Act 1960

Children and young person (employment) act 1966

Commercial vehicles(Licensing Board Act 1987)

Electricity Supply Act 1990

Employment Act 1955

Immigration Act 1959/63

Internal Security Act 1960

Irrigation Areas Act 1953

Land and Conservation Act 1960

National Forestry Act 1984

Environment Quality Act 1974

Estate Hospital Assistants (Registration) act 1965

Act 645 National Heritage Act 2005

Act 344 Police Act 1967

Anti-Corruption Act 1997

Act 246 Private employment Agencies Act 1981





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Act 76 Protection of Wild Life Act 1972

Act 208 Sewerage Services Act 1993

Act 133 Street, Drainage and Building Act 1974

Wages Councils Act 1974

Waters Act 1920

Workmen’s Compensation Act 1952.

Pesticides Act 1974

Destructions of Disease Bearing Insects Act

Employment Act 1955

Internal Security Act 1960

Employment Provident Fund Act

Drainage Works Act 1954.

Workers minimum Standards of Housing and Amenities Act 1990

All 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 by Admin Officer as to ensure that they are renewed well before the expiry dates to ensure no lapses in the compliance to Malaysian government laws and regulations. Sighted DOE visit log book, which last visited on July 2012 with necessary records updated.

JKKP conducted annual inspection on mill facilities that eventually linked to competence person to operate the mill. Kulai POM seen maintain with a checklist of competence person along with JKKP visit report. Complete set of laws and regulation is maintained in file no: P2/3/2012 that covers related laws and regulations.

A check list available to monitor the laws with input of date renewal, expired date and person in charge. 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.

MA 2.2 Land titles / country leases for all properties in accordance with the law of the land. Legal boundaries are identified and confirmed on site. The company has mechanism for the resolution of conflicts and where there have been disputes; there is proof of progress in an acceptable manner to all parties. Land acquisition has been with free prior and informed consent.

Land title for mill is depending on the agreement between Felda and Felda palm industry. Estate office only keeps the copy all land title of settlers including map. All settlers have own land title stated land only can be used for agriculture. Sample:

Settlers – Amil Siraj; 331110-01-5139; with lot 5746 for house and 27404 for his land of plantation.

Name smallholder: Roslan Sirat: No of land title: 1346 for area: 0.7873ha.

Boundary stone for mill is available and well maintained.

MA 2.3 The company maintains records of any negotiated agreements with traditional landowners and these agreements are supplemented with maps to the appropriate scale. There were no customary rights issues raised by the by internal and external stakeholders during the stakeholder meeting and during the visit to surrounding communities.

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

Criterion by Audit Summary

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





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

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

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

Criterion by Audit

Summary

The mills and estates have a complete set of SOPs which is being strictly adhered to and continuously monitored. Soil fertility is being maintained in the fields and erosion prevention is continuously carried out. IPM is being implemented in all the estates and the use of chemicals are in accordance with the regulations. There is a comprehensive OSH policy and is being implemented throughout the estate and mill. There are 1 minor and 2 major non-conformities [training, safety and chemical management] issued.

MA 4.1 Documented SOP No: FPI/L3/01-01 with its lists of activity which has each individual document respectively covering all its operations. Thus is further identified for critical control point within the document. FELDA Group has prepared 115 SOP’s for all the activities in the mill.

Example of SOP’s: i. FPI-PK-001 General Safety

ii. FPI-PK-004(A) Loading Ramp Operation iii. FPI-PK-012 Cake breaker conveyor operation. iv. FPI-PK-021 Boiler machine operation. v. FPI-PK-026(A) Laboratory Operation

vi. FPI-PK-027 Effluent pond operation vii. FPI-PK-028 Confine space Operation

viii. FPI-L3-7-04 Press station Operation ix. FPI-L3-10-08 Hot water tank operation x. FPI-L3-10-15 Bulk storage oil tank

xi. FPI-L3-12-25 Turbine operation xii. FPI-L3-12-30 Genset operation.

SOP covering what the purpose of SOP, job scope, person in charge, procedure with flow chart and date of revise. SOP will be revised if any changing of mill activity. Last SOP was revised on 23/07/2012. Estate has proper reference document title “Manual Operasi Ladang Sawit Lestari” covering all activities in estate. The manual divide by 3 section:

i. Plantation Development- Covering 20 operation activities in plantation. ii. Plantation Development (immature) - Covering 9 operation activities.

Sighted evidence for:

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

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

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

A “Manual Operasi Ladang Sawit Lestari” covering all activities in estate. The manual divide by 3 section “Plantation Development- Covering 20 operation activities in plantation”. Plantation Development (immature) - Covering 9 operation activities. Group SOP for estate operation dated 01-06-2012 and all





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operational SOP are kept at manager’s office and needs his approval for withdrawal for any operational purposes. All types of RSPO related records are retained for 7 years. Sighted record of monitoring e.g. fertilizer, road maintenance programme and EFB is kept since 2011.

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. 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.

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 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 stacking oil palm leaf, EFB application and terracing to minimizing soil erosion in the estate. Cover crop planted to reducing bare soil. There is sufficient documented plan available for minimizing soil erosion. The EIA effectively identified the soil erosion. Management seen practicing below policies:

No blanket spraying.

Terracing on slopes of 12 degrees and over.

L shaped frond management.

Establishment of Mucuna Bracteata.

Road maintenance and design to avoid steep gradients.

Cover crop planted to reducing bare soil, EFB application is carried out and stacking oil palm leaf. Field visit findings found bare terrace at the field shown that cover crop plan is well implemented. Road maintenance programmes is generated. Estate road is maintained under JKKK with deduction from settler’s payment by Techno plant office every month. Sighted “2011/12 road maintenance program” which effectively reviewed half yearly by head of sustainability team on grading, stoning, compacting, roadside drain maintenance, culvert installation, general maintenance and relation to the environmental impacts, such as quality of river water. This is being communicated to all estate’s management team during quarterly RSPO review.

Estate have prepared document as guidelines based on SOP 12.0 to be implemented in the field. Drainage system also is maintained in that area. Estate practiced to maintain the terrace in over 15 degree slopes and be





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covered by planting Mucuna Bracteata. Water drain is maintained to avoid from stuck. Pruned fronds is stacked along inter row to mitigate soil erosion and fertilizer run off. At the riparian zone, jungle tree is planted to maintain the soil. The implementation of SOP is recorded and maps for the high risk area are recognised.

MA 4.4 Buffer zone is maintained 1 m alongside Tampoi River marked with ”blue ring” on the tree. No chemical activities are allowed in the buffer zone. Sample of river water checked. There are 2 sampling points for Sg. Tampoi inlet and outlet. Water analysis conducted once a year by FASSB. Reference document kept by chemist and sighted Analysis No: Jun 2012, sample no: 36/2012: pH: 8.08, BOD: 165, COD: 477, Total Solids: 4698, Suspended Solids: 617, Oil & Grease: 4, Ammonia Cal Nitrogen: 86, Total Nitrogen: 115.

Rainfall record is monitored on daily basis and summarised in monthly report. 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.

MA 4.5 List of chemical used available. Estate only uses 3 type of pesticide in the field Metsulfuron Methyl, Glyphosate and Paraquat. All types are approved by MPOA (local government) to use. However. 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.

The pesticide reduction program incorporated in the IPM. During this assessment it is noted that there is no use of chemicals type 1A and 1B and the company has stopped using Paraquat since Jan 2011. There is evidence sighted during field visit, a written memo displayed in variable place to inform the effect of using Paraquat. Paraquat is used and sighted a plan established to reduce of using Paraquat. Target reducing of Paraquat is from 500 liter 2012 until 2017 is 80 liter.

A Minor NC was issued for “There are no proper records of monitoring effectiveness of using barn owl to control population of rat”.

MA 4.6 SOP for spraying activities is available in “Manual lading lestari”. 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).

Schedule waste is being collect by licence collector, Quality Alam. Sighted Inventory of schedule waste is available and maintained effectively in the office. During site visit, sighted the schedule waste store well managed with enclosed and used natural ventilation, lighting. The facility incorporated with spillage / oil sump to traps if there would be any spillage. Secondary containment builds with concrete with 4-6 inch hum to avoid accidental overflow during emergency.

Sighted the required PPE, first aid equipments, spillage kits, fire extinguishers, eye washing area, dressing room for female workers and emergency shower adequately made available. Signages both in English and Malay and emergency contact list observed at all visit areas. There are no pregnant workers who were handling pesticides in the estates. CHRA for the mill and estates will be carry out by 1st quarter 2013. The quantity of active ingredient of pesticides and herbicides used are recorded and kept for at least 5 years.





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Common medical check-up as urine test, blood test and physical test are carried out for all workers including management staff by the appointed panel clinic. All the medical reports from panel doctor will be review by the visiting doctor at both estate and mill before proceeding to respective managers and safety officer to acknowledge. The latest medical surveillance reports show no evidence of low blood cholinesterase levels amongst spraying workers. Sighted the evidence that workers who recommended for further check-up been treated well by the management.

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

PPE distribution record is available in-line with risk assessment. During field visit, sighted the PPE storage and cleaning area, first aid equipments, spillage kits, fire extinguishers, eye washing area, dressing room for female workers and emergency shower adequately made available. OHS committees at planned interval, minimum once in month perform spot audits both in mill and estates as to ensure the safety practices. This inspection includes on PPE availability, adequacy and its condition during working time.

Hazards are identified in the risk assessment that available at all operating units, mill and estates where the risk is calculated by risk factor number with likelihood definition (L) of potential risk with (S) severity of risk potential. All routine and non-routine activities in mill and estates have been analysed on what, where, level of risk, hazards, risk assessment, action plan and target to complete. HIRARC being review yearly particularly during safety meeting or if any changes in operation.

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

The monitoring of noise level was carried out by 3rd party. Reference document kept on document number: [FPI/L4/QOHSE-2.1, rev 0 dated on 29/01/12]. As at April 2012, 3rd party report resulted, the noise level at Boiler Station was 69.8 dBA and at Sterilization Station was 71.6 dBA. The Engineering and administrative controls to prevent hearing loss of mill workers exposed to noise are as follows :

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

Performing vibration monitoring on critical machine/ equipment

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

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

Audiogram and occupational and medical history records for every employee are available. Company also provides annual and monthly medical checkup.





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All workers are covered SOCSO insurance for local and Takaful Insurance for foreign workers. During field and mill visits, auditors conducted interviews with manures, sprayers, hospital attendance, sterilizer operators and engine room operators on occupational diseases to ensure their safety and health awareness. The interview session resulted with satisfactory output from interviewees.

A Major NC was issued for “FPI-PK-048 Contractor, Pembekal, Pemborong and Pelawat para C sub 6.4; procedures for Visitor safety precaution were not evident. No briefing on PPE, or supply of PPE provided before letting the visitor into the factory operation premises. Fire Extinguisher AD 793576 FA # 18 found in Loading Ramp, at inspection record Nov 2012 found to be at Kernel Plant. MSDS found is not in place of use. [Chemical Store]. Bomba Fire Certificate is not evidence”.

MA 4.8 As for the mill, training on safety conducted on each aspects of safety. Records sighted are various and sample taken is for firefighting training attended from various departments. The fire fighting squad headed by the safety officer and mill manager being the advisor. Sighted the OHS Emergency Evacuation team chart dated on Jun 2012. Training programes developed for each processing stages, such as sterilizer, threshing, pressing, clarification, empty bunch treatment, kernel, water treatment boiler, laboratory, decanter solid dry, workshop, despatch, biogas, warehouse. Ad hoc trainings such as OSH for contractor, legal, collective agreement done by the safety officer.

In estate basic OSH training Plan made available for emergency and fire drill. The program has planned date and realized date recorded. Sighted training records for sprayer & manures on “Safely Manner Using Chemicals” attended by 9 workers on 17/1/12. The respective field supervisor to ensure the trainings conducted in accordance to the plan schedule.

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

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. 3 major non-conformities were raised.

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. 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. The impacts from mill operations from reception of FFB in the mill right up till effluent treatment is also assessed in the similar way.





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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”.

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

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

A management plan been prepared and is being well monitor by the sustainability team. The plan identifies rare species and the monitoring report includes methodology, tools used, sampling technique and the analysis result and summary. This plan is associated with a mile stone chart on activities how the estate can preserve the species.

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. 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 wastes 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.

A Major NC was issued for “List available but there is no evidence provided by estate to demonstrate sources of pollution in order to control or reduce the waste”.

A Major NC was issued for “There is no operational plan in estate to reduce pollution even though there are identified wastes. No plan developed to mitigate leaking from tractor at tractor parking bay”.

MA 5.4 The mill and estate have recorded and monitoring their renewable and non-renewable fuel usage. Diesel usage is recorded by daily and being tabulated into monthly comparison table.

MA 5.5 No burning policy is implemented in all FELDA plantations. Field visit, interview with workers, stakeholders, SOP’s and manager interviews confirm that the previous crop is felled down, chipped, shredded and spread. No evidence of burning anywhere on any operating units. A complete mapping of baseline value established, where the monitoring focus on fibre [MT], FFB





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processed, CPO produced and the linkage to fuel consumption. Monitoring every month and the figures will be compiled at the end of every year.

MA 5.6 Mill emissions source is identified at each operating station and 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. Mill has Ringelmann smoke chart. Reference document kept on document number: [FPI/L4/QOHSE-2.1, rev 0 dated on 29/01/12].The effluent (POME) quantity is monitored on a daily and monthly basis and a summary is available and was sighted. Pollution from POME has been reduced with the commissioning of the biogas plant in the mill.

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

Criterion by Audit

Summary

The mill and estates have conducted the social impact assessment in a participative manner. 6 minor non-conformities and 3 major nonconformities were raised. The relevant policies are in place and are fully implemented across the board.

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. Non-restrictive format incorporating elements spelt out in this criterion were shown; it was done in participatory way. Positive and negative impact said Ex: Positive impact on recruitment / registration has source of assessment. Overall there is evidence a documented social impact assessment conducted successfully”.

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

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

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

If the matter cannot be resolved within 30 days, all the related document will be 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,





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education and medical facilities and government agencies are available and was sighted in the mill and estate offices.

A Major NC was issued for “Procedure FPI/L2/QOHSE-6.0 dated 15.11.10 on Consultation, Participation and Communication only describes procedures for Quality, Environment, and Safety & Health. The communication and consultation mechanisms are designed in collaboration with local communities and other affected or interested parties not evident. The communication took into account differential access to information of women as compared to men, village leaders as compared to day workers, new versus established community groups, and different ethnic groups is not evident. Consideration given to involving third parties, such as disinterested community groups, NGOs, or government is not evident”.

A Major NC was issued for “PIC personnel available; unofficially; and no evident that it is nominated”.

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 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.

MA 6.4 History and documents of the development 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.

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.

There is a clause in the contract of service stating that whatever is not mentioned in the contract of service will be covered by the Employment Act 1955 and the NUPW/MAPA agreement. Salary slips clearly shows the calculations of gross salary, all deductions and net salary of a worker. Workers interviewed confirmed that they are being paid more than the stipulated minimum wage and that they understand all the deductions being made.

MA 6.6 The company was conducted meeting with labur union once a year. The last meeting with labour union on Oct 2012, attended by representative from labour unions and discussed 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 issues for “No evident sighted for any documented minute of meetings with main trade unions or workers representatives for migrant worker; but there is meeting held within management and local staff dated 27.4.2012”.





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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.

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

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

MA 6.10 Pricing is followed by actual MPOB pricing system. A daily review and update does guarantee a clear and transparent procedure, complete records are available. 20.50 @ 1% @ MT internal FFB 18.60 for external FFB on 6.12.2012

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

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 Recycle programs are being monitor with the input of environmental management programme. Waste / used tyres being used for land/gardening beatification. 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 trenches for land irrigation. As for the expenditures contributed for environmental activities, are very much linked to disposal of household rubbish, disposal of schedule waste, effluent pond maintenance activities.





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

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

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

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

4.3.1 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: 4.7.1

A health and safety policy, which is implemented and monitored. [Evidence of documented Occupational Safety Health

(OSH) plan which is in compliance with OSH Act 1994 and Factory and Machinery Act 1967 (Act 139).].

Evidence of non-conformity:

“FPI-PK-048 Contractor, Pembekal, Pemborong and Pelawat para C sub 6.4” procedures for Visitor safety precaution were

not evident. No briefing on PPE, or supply of PPE provided before letting the visitor into the factory operation premises. Fire

Extinguisher AD 793576 FA # 18 found in Loading Ramp, at inspection record Nov 2012 found to be at Kernel Plant. MSDS

found is not in place of use. [Chemical Store]. Bomba Fire Certificate is not evidence.

Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. A training session was conducted for all suppliers and contractors on our approach towards visitor’s safety concern while at our premises. Fire extinguisher is place to the loading ramp originally at the kernel plant. Training has been conducted on the 2 February 2013 for the first aid training. MSDS is put at the chemical storage. Obtained a letter of the exemption from the fire department permit. Timeline for conformance: 60 Days

Review of corrective /improvement action: Corrective action will be verified during next assessment.

Assessors signature:

Date: 08/05/2013





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NC number: 02




Raised by: Simon


A training programme (appropriate to the scale of the organization) that includes regular assessment of training needs and documentation, including records of training for employees are kept.


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

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

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

Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. Training for RSPO has been conducted on the 2 February 2013 for the RSPO. Training plan has been established for 2013 is

sighted. Analysis of the effectiveness of the training has been conducted based on the training.

Timeline for conformance: 60 Days



Date: 08/05/2013


NC number: 03




Raised by: Simon


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.

Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. Stakeholder consultation has been conducted on the 26.02.2013.Minute of meting is sighted that discuss about the impact and aspect of the EIA.




Date: 08/05/2013





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NC number: 04




Raised by: Simon

Aspect of standard: Criterion: 5.3.1-

Documented identification of all waste products and sources of pollution.


List available but there is no evidence provided to demonstrate sources of pollution in order to control or reduce the waste.

Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. List of the waste dated January 2013 and records for the waste generation is made available from the October until

December 2013.




Date: 08/05/2013


NC number: 05




Raised by: Simon


Having identified wastes and pollutants, an operational plan should be developed and implemented, to avoid or reduce

pollution.


There is no operational plan to reduce pollution even though there are identified wastes. No plan developed to mitigate

leaking from tractor at tractor parking bay.

Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. Plan to reduce of the identified waste has been establish on the Pelan Pengurusan Pencemaran. Estate has established of the Bahan Buangan Sampingan effectively from 01/02/2012. Timeline for conformance: 60 Days



Date: 08/05/2013





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NC number: 06




Raised by: Simon


Documented consultation and communication procedures.


“Procedure FPI/L2/QOHSE-6.0 dated 15.11.10 on Consultation, Participation and Communication only describes procedures

for Quality, Environment, and Safety & Health. The communication and consultation mechanisms are designed in

collaboration with local communities and other affected or interested parties not evident. The communication took into

account differential access to information of women as compared to men, village leaders as compared to day workers, new

versus established community groups, and different ethnic groups is not evident. Consideration given to involving third

parties, such as disinterested community groups, NGOs, or government is not evident.

Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. Company has conducted meeting dated on 13 Mac 2013 to discuss about communication and consultation procedure which been amended accordingly. Also to ensure all the stakeholders understand about the procedure to rise of the complaint and grievances. Timeline for conformance: 60 Days



Date: 08/05/2013


NC number: 07




Raised by: Simon


A nominated plantation management official at the operating unit responsible for these issues.


PIC personnel available; unofficially; and no evident that it is nominated.

Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. Company has issued letter of appointed date on 13 Mac 2013.Clerk is person who are responsible for handling communication and complaints.




Date: 08/05/2013





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NC number: 08




Raised by: Simon

Aspect of standard: Criterion: 6.4.1 Establishment of a procedure for identifying legal and customary rights and a procedure for identifying people entitled to compensation.

Evidence of non-conformity: 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. 2 procedures were established to address the legal and customary rights. A mechanism been developed to identify any negotiation concerning compensation of legal and customary rights.




Date: 08/05/2013


NC number: 09



Major or Minor: Minor

Raised by: Simon

Aspect of standard: Criterion: 4.5.2 Extent monitoring IPM System

Evidence of non-conformity: There are no proper records of monitoring effectiveness of using barn owl to control population of rat.

Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. An evaluation and cencus report established and training been provided to all field Supervisor of the monitoring and recording methods.

Timeline for conformance: Before next surveillance

Review of corrective /improvement action:

Corrective action will be verified during next assessment.


Date: 05/12/12





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NC number: 10




Raised by: Simon

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

Evidence of non-conformity: Contract of work for migrant workers are not available. Unable to verify if workers understood contract. Terms & condition

not evident.

Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. With immediate effect, all foreign workers been briefed of content of aggrement.

Timeline for conformance: Before next surveillance


Corrective action will be verified during next assessment.


Date: 05/12/12


NC number: 11




Raised by: Simon

Aspect of standard: Criterion: 6.5.3 Growers and millers provide adequate housing, water supplies, medical, educational and welfare amenities in accordance with Workers’ Minimum Standard of Housing and Amenities Act 1990 (Act 446) or above, where no such public facilities are available or accessible.

Evidence of non-conformity: Sanitation-NG; toilet unacceptable condition, no door for privacy. Visual Assessment of all the dormitory workers employed

by Felda is not provided with reasonable standard of living / housing. Domestic waste Apart found spray pump, chemical

gallon at the dormitory. Contena is used as dormitory, 8 contena for total of 60 workers [present 40 worker; 5 @ contena.

Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. Timeline for conformance: Before next surveillance

Review of corrective /improvement action: Assessors signature: Date:





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NC number: 12




Raised by: Simon

Aspect of standard: Criterion: 6.6.1 Documented minute of meetings with main trade unions or workers representatives.

Evidence of non-conformity: No evident sighted for any documented minute of meetings with main trade unions or workers representatives for migrant worker; but there is meeting held within management and local staff dated 27.4.2012.

Auditors signature:

Date: 05/12/12

Proposed corrective action / improvement action by company. Timeline for conformance: Before next surveillance


Assessors signature: Date:

4.3.2 Non-Conformity Identified during the last ASA

This is main assessment

4.3.3 Observations Raised During this Audit

Non 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?

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





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

Subject raised Company response and proposed action to be taken

Audit team findings

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

PART 5: RSPO SUPPLY CHAIN CERTIFICATION

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

5.1 POM Included In The Scope Of The Audit

Name Palm Oil Mill

Mill Capacity

Location Supply Chain Model

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

KULAI POM 30 Kilang Sawit Kulai, Felda Taib Andak, 81000, 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 25,230 7,115 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 own plantation. FFB price is displayed at the weighbridge and OER and KER calculation is based from HQ in Kuala Lumpur. After CPO and PK (as products) extracted from FFB, CPO is going to storage tanks and PK is to kernel silo. Products will despatch by instruction from HO. Mill is still under preparation stage to received certified FFB and training for RSPO is under 2013 programme.

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

Recommendations made: Yes

Summary of non-compliances:

None Found

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





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PART 6: CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

6.1 Date of next ASA

The provisional date for the next ASA is: April 2014

6.2 Date for Closure of Non-Conformities

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

All major NCs to be closed by: 20 August 2013

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

6.3 Signing by the Client

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

Acceptance of liability in execution of the instructions given.

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

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

Acknowledged by:

Name: NORAZAM ABDUL HAMEED

Position: GENERAL MANAGER PSQM DEPARTMENT

Date: 17.10.2013 Signature

6.4 Signing by the Lead Auditor

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

Acknowledged by:

Name: Simon Selvaraj

Position: Lead Auditor

Date: 21 June 2013 Signature

6.5 Signing by the Certifier

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

Acknowledged by:

Name: Hari Naveen Christopher

Position: Certifier

Date: 30th December 2013 Signature





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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