SGS RSPO
GP 7003A
Doc. Number:
(Principles & Criteria)
Doc. Version date:
Issue 3
Page:
1 of 80
RSPO Principles & criteria CERTIFICATION REPORT
Public Summary Information Project Number: Client:
MY03140 Sime Darby SOU 15 – Sua Betong Business Unit
RSPO membership #
1-0008-04-000-00
RSPO Registered Parent Company:
Sime Darby Plantation Sdn Bhd
Country:
Malaysia
Scope:
Receiving and processing of RSPO certified Fresh Fruit Bunches (FFB) from its supply base, production and sales of RSPO certified Crude Palm Oil (CPO) and Palm Kernel (PK) under Module D (CPO Mill: Identity Preserved) of RSPO Supply Chain and RSPO MY-NI standard.
Supply Chain Module:
Module D: CPO Mills: Identity Preserved
Mill Capacity
Single (60 MTH)
Certificate Number:
SGS-RSPO/PM-MY14/01364
SGS Accreditation Code
RSPO-ACC-010
Contacts Job Description:
Contact Person: 1. Head, Sustainability Unit 2. Sua Betong Mill Manager
Name:
Contact Person: 1. Madam Shylaja Devi Vasudevan Nair 2. Mr. Abdul Halim B. Shahor
Address: Street and number: Town/City State/Country Zip/Postal code Country
Head Office Main Tower, Level 3A, Plantation Tower No.2, Jalan PJU 1A/7, Ara Damansara 47301 Petaling Jaya, Selangor, Malaysia. . Mill Address Sua Betong Oil Mill KM22, Jalan Linggi 71050 Sirusa, Port Dickson, Negeri Sembilan, Malaysia.
Tel:
(603) 7848 4000
Cell Phone :
-
Fax: Web Site Address:
Number of Estate
Eight
Date of Issue:
18 Feb 2014
Date of Expiry:
17 Feb 2019
Date of accreditation:
24 May 2014
th th
Postal address: Same as per in the left box
(603) 7848 4172 http://www.simedarby.com
1.
[email protected] 2.
[email protected]
Email: Standard:
Malaysian National Interpretation 2014 RSPO Supply Chain Certification Standard dated 21 November 2014
Date of last report update
28 Jan 2016
SGS services are rendered in accordance with the applicable SGS General Conditions of Service accessible at http://www.sgs.com/en/Terms-and-Conditions.aspx SGS Malaysia (RSPO Program) Systems and Services Certification Division
Unit 10-1, 10th Floor, Bangunan Malaysian RE. No. 17, Lorong Dungun, Damansara Height 50490 Kuala Lumpur, MALAYSIA. Contact Programm Manager at t. +6 (03)5121 2320 www.sgs.my e
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End of Public Summary
BASIC EVALUATION INFORMATION MAIN EVALUATION Evaluation Dates:
26 - 30 November 2012
Team Leader/Team:
James Ong
Affiliate Project Manager:
Date:
External Peer Review
Date:
Report approved by:
Haye Semail
Date:
18 Feb 2014
Certification approved by:
Kenny Looi
Date:
18 Feb 2014
Database logged by:
Othman Shahziela
Date:
18 Feb 2014
SURVEILLANCE 1 Evaluation Dates:
11 – 13 November 2014
Team Leader/Team:
Abdullah Shazaley, Abdullah Din, Dayang Suhanie
Report reviewed & approved by:
Haye Semail
Date:
7 May 2015
Certification approved by:
Kenny Looi
Date:
8 May 2015
Database logged by:
Othman Shahziela
Date:
8 May 2015
Date:
8 Feb 2016
SURVEILLANCE 2 Evaluation Dates:
16-19 November 2015
Team Leader/Team:
Mohd Faisal bin Jaafar, Abdullah Shazaley, Abdullah Din
Report reviewed & approved by:
Hoo Boon Han
Certification approved by:
Date:
Database logged by:
Date:
SURVEILLANCE 3 Evaluation Dates: Team Leader/Team: Report reviewed & approved by:
Date:
Certification approved by:
Date:
Database logged by:
Date:
SURVEILLANCE 4 Evaluation Dates: Team Leader/Team: Report reviewed & approved by:
Date:
Certification approved by:
Date:
Database logged by:
Date:
SGS RSPO (Principles & Criteria)
Doc. Number:
GP 7003A
Doc. Version date:
Issue 3
Page:
3 of 80
TABLE OF CONTENTS BASIC EVALUATION INFORMATION.................................................................................................................... 2 SUMMARY ............................................................................................................................................................... 4 List of Abbreviation ................................................................................................................................................ 5 1.
Scope of certification assessment ......................................................................................................... 6 1.1
National Interpretation Used ..................................................................................................................... 6
1.2
Certification Scope .................................................................................................................................... 6
1.3
Location and Maps .................................................................................................................................... 6
1.4
Description of Supply Base and Mill Processing Capacity ........................................................................ 8
1.5
Date of Planting and Cycle ........................................................................................................................ 9
1.6
Other Certification Held ........................................................................................................................... 10
1.7
Organizational Information and Contact Person ..................................................................................... 10
1.8
Time-bound Plan for Other Management Units ....................................................................................... 10
1.9
Area of Plantation...................................................................................................................................... 9
1.10
2.
3.
4.
Date Certificate Issued and Scope of Certificate .................................. Error! Bookmark not defined.
Assessment Process .............................................................................................................................12 2.1
Certification Body .................................................................................................................................... 12
2.2
Assessment Methodology, Programme, Site Visits ................................................................................. 12
2.3
Qualification of Lead Assessor and Assessment Team .......................................................................... 14
2.4
Stakeholder Consultation and List of Stakeholders Contacted ............................................................... 14
Assessment Findings ............................................................................................................................15 3.1
Summary of Findings .............................................................................................................................. 15
3.2
Corrective Action Request ...................................................................................................................... 55
3.3
Noteworthy Positive & Negative Observation ............................................ Error! Bookmark not defined.
3.4
Status of Non-Conformities Previously Identified .................................................................................... 55
3.5
Issues Raised by Stakeholders and Findings ......................................................................................... 55
Acknowledgement of Organization Internal Responsibility ..............................................................56 4.1
Conclusion .............................................................................................................................................. 56
4.2
Date of Next Surveillance Visit ................................................................................................................ 56
4.3
Date of Closing Non-Conformities ........................................................................................................... 56
4.4
Acknowledgement of Internal Responsibility and Formal Sign-off Assessment Findings........................ 56
APPENDIX A: CORRECTIVE ACTION REQUEST & OBSERVATION ...............................................................57 APPENDIX B: NON-CONFORMITIES PREVIOUSLY IDENTIFIED .....................................................................66 APPENDIX C: TIMEBOUND PLAN .......................................................................................................................74 APPENDIX D: LIST OF STAKEHOLDERS CONTACTED ...................................................................................80
SGS services are rendered in accordance with the applicable SGS General Conditions of Service accessible at http://www.sgs.com/en/Terms-and-Conditions.aspx SGS Malaysia (RSPO Program) Systems and Services Certification Division
Unit 10-1, 10th Floor, Bangunan Malaysian RE. No. 17, Lorong Dungun, Damansara Height 50490 Kuala Lumpur, MALAYSIA. Contact Programm Manager at t. +6 (03)5121 2320 www.sgs.my e
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LIST OF TABLES Table 1: Mill GPS Location .................................................................................................................................. 6 Table 2: Budgeted Yield from Supply Base (Financial Year) ............................................................................. 8 Table 3: Planting Age Profiles for all Supply Base Estates ................................................................................ 9 Table 4: Area Statement of the Supplying Estates ............................................................................................. 9 Table 5: Assessment Program .......................................................................................................................... 13 Table 6: Auditors Profile..................................................................................................................................... 14
SUMMARY The merger of Sime Darby Berhad, Golden Hope Plantations Berhad and Kumpulan Guthrie Berhad which was completed on November 27, 2007, establishes Sime Darby Plantation Sdn Bhd. Sime Darby Plantation Sdn Bhd represents one of the five core Divisions of Sime Darby Group and is involved in the following:a. Oil palm cultivation b. Agribusiness & Food c. Research & Development
The Plantation Division spans across Peninsular Malaysia, Sabah and Sarawak in Malaysia and Kalimantan, Sumatera and Sulawesi in Indonesia representing a total of 524,626 hectares of planted oil palm. The operations involve the management of 208 estates and 65 mills. The Division’s downstream operations are represented in 15 countries namely: Malaysia, Singapore, Thailand, Vietnam, Japan, China, Germany, United Kingdom, Bangladesh, South Africa, United Arab Emirates, The Netherlands, Brazil, Canada and the United States of America. Alongside oil palm, plantation division is also involved in agri-business activities and cultivation of rubber. As an integrated oil palm company, Sime Darby Plantation’s business activities cover the whole spectrum of the value chain. Committed to sustainable development, the Company’s Upstream and Downstream activities adhere strictly to industry-proven Best Agricultural Practices. In keeping with the aspiration of making a sustainable future real for everyone, Sime Darby Plantation Sdn Bhd claims to makes a conscious and concerted effort towards conservation and protection of the environment, the rehabilitation of forests, protection of wildlife and promotion of the well-being of the communities in which it operates.
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LIST OF ABBREVIATION
Short Form CAR CHRA CPO DID DOE EFB EIA EMS EQA ERT ESA FFA FFB FR Ha HCV HDPE IPM ISO IUCN JCC JUPEM K kW M Mg Mm Mt MYNI N NGO OA OER OSH P P&C PK POME PPE PT SOP Sdn Bhd SEIA Sg SGS SOP SPC USECHH WHO yr
Meanings Corrective Action Request Chemical Health Risk Assessment Crude Palm Oil Department of Drainage and Irrigation, Malaysia Department of Environment, Malaysia Empty Fruit Bunch Environment Impact Assessment Environmental Management System Environmental Quality Act Endangered, Rare and Threatened species Environmentally Sensitive Area Free Fatty Acids Fresh Fruit Bunches Forest Reserve Hectare High Conservation Value High Density Polyethylene Integrated Pest Management International Organisation for Standardisation International Union for Conservation of Nature and Natural Resources Joint Consultative Committee Jabatan Ukur dan Pemetaan Malaysia (Department of Survey and Mapping Malaysia) Potassium Kilowatt Meter Magnesium Millimeter Metric ton Malaysia National Interpretation Nitrogen Non Governmental Organisation Orang Asli (Indigenous People) Oil Extraction Rate Occupational Safety & Health Phosphate Principles and Criteria Palm Kernel Palm Oil Mill Effluent Personal Protective Equipment Pejabat Tanah (Coding for Pahang Land Office) Standard Operating Procedures Sendirian Berhad (Private Limited) Social and Environment Impact Assessment Sungai Societe Generale de Surveillance Standard Operating Procedures Senior Plantation Controller Use and Standards of Exposure of Chemicals Hazardous to Health World Health Organisation Year
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SCOPE OF CERTIFICATION ASSESSMENT
1.1
National Interpretation Used The operations of the mill and their supply based of FFB were assessed against the Roundtable on Sustainable Palm Oil (RSPO), Malaysian National Interpretation Task Force (MYNI-TF), National Interpretation of RSPO Principles and Criteria for Sustainable Palm Oil Production Endorsed by RSPO Board of Governors on 6 March 2015.
1.2
Certification Scope The scope of certification includes the production of Sua Betong Palm Oil Mill and its supply base according to the standard of National Interpretation of RSPO Principles and Criteria for Sustainable Palm Oil Production Endorsed by RSPO Board of Governors on 6 March 2015 and RSPO Supply Chain Certification Standard dated 21 November 2014
1.3
Location and Maps SOU 15 Sua Betong is located in Port Dickson, Negeri Sembilan, Malaysia (Figure 1). More detailed information on the estates location and layouts is shown in Figures 2, 3 and 4. The GPS locations of the mills are shown in Table 1. Table 1: Mill and Supply Base GPS Location Mill/Supply Base Sua Betong Mill Ldg PD Lukut
Longitude
Latitude
E 101°53’43’
N 2°31’42’’
E101°50’16.5156”
N 2°30’59.3172”
o
o
Ldg Salak
E 101 53’ 38”
N 2 34’ 54”
Ldg Bradwall
E 101º54’55”
N 2º33’28”
Ldg Sengkang
E 101° 57’ 72”
N 2° 26’ 095”
Ldg Siliau
E 101 54’ 0’’
◦
N 2 32’ 06’’
◦
Ldg Sungei Bahru
E 102° 5’ 44”
N 2° 26’ 18”
Ldg Tampin Linggi
E 101˚59’19.7”
N 2˚30’52.3”
Ldg Sua Betong
E 101° 53"43"
N 2° 31' 42"
Figure 1: Estates and Mills Location Map
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Description of Supply Base and Mill Processing Capacity The FFB is sourced from 08 which are directly managed by Sime Darby Plantation Sdn Bhd under Strategic Operating Unit (SOU 15). The budgeted crop yields from each estate are listed in Table 2 below:
Table 2: Actual and Projected FFB from Supply Base Plantation area
Annual FFB Production Actual 2014/2015 (MT)
Annual FFB Production Projection 2015/2016 (MT)
Planted (ha)
Unplanted Area / Others (ha)
Total Land Title Area (ha)
Ldg PD Lukut
1,383.00
140.61
1,523.61
28,654.35
34,903.01
Ldg Salak
2,626.81
296.92
2,923.73
50,711.03
50,336.98
Ldg Bradwall
2,819.69
301.51
3,121.20
28,772.92
32,544.04
Ldg Sengkang
2,640.95
190.56
2,831.51
54,768.19
59,610
Ldg Siliau
1,704.08
145.37
1,849.45
37,239.61
40,870.87
Ldg Sungei Bahru
1,001.63
436.70
1,438.33
19.50
21.99
Ldg Tampin Linggi
1,870.25
236.46
2,106.71
38,018.87
42,659.56
Name of estate
Table 3: Actual and Projected Mill Processing Data Mill Production Figures (MT) (Audited Estate) Mill
Actual (2014/2015)
Projected (2015/2016)
CPOs
PKs
CPOs
PKs
POM
47,309.077
11,172.887
67,703.52
16,149.46
Total
OER: 20.63 %
KER: 4.87 %
OER: 21.80 %
KER: 5.20 %
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Area of Plantation The areas of supplying estates for this operating unit are listed in Table 4. Details of planted area (mature/immature), total land area, conservation, HCV and others are also listed Table 4: Area Statement of the Supplying Estates
Others*
Total Certified Area (ha)
0
140.61
1,523.61
0
39.12
257.80
2,923.73
1,217.11
21.66
1.13
20.69
43.48
2,446.47
194.48
0
49.97
140.59
2,831.51
Ldg Siliau
1,633.71
70.37
0
0
0
1,704.08
Ldg Sungei Bahru
1,001.63
-
-
-
-
1,001.63
Ldg Tampin Linggi
1,710.59
154.17
-
69.90
166.56
2,106.71
Ldg Sua Betong
2,497.86
238.11
100.31
2.66
31.81
2,870.75
Plantation area (ha)
Non-Cultivated (ha)
Estate Production
Immature
1289
94
0
Ldg Salak
1,996.98
629.83
Ldg Bradwall
1,427.37
Ldg Sengkang
Ldg PD Lukut
HCV
Conservation
Note: * Non-cultivated areas identified as building and access road
1.6
Date of Planting and Cycle SOU 15 Sua Betong has been established since 1960’s and currently in their second and third planting cycle. The palms ware considered matured after months 30 months of planting and productive until the age of 25 years (1 cycle). A replanting program for all estates involved are available and being projected for the next five (5) financial years. The production statuses (mature/immature) for all the estates are simplified in Table 4 below.
Table 5: Planting Age Profiles for all Supply Base Estates
Name of supplying estate
Planting Age (Ha) Immature
>4 - 14 years
>14 - 25 years
>25 years
94
615
674
0
629.83
1130.92
866.06
0
1217.11
1132.47
294.90
0
194.48
1761.73
684.74
0
70.37
1264.25
369.46
0
Ldg Sungei Bahru
-
1001.63
-
-
Ldg Tampin Linggi
154.17
464.94
1245.65
-
Ldg PD Lukut Ldg Salak Ldg Bradwall Ldg Sengkang Ldg Siliau
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2008.86
489
Nil
Other Certification Held SOU 15 Sua Betong does not hold any other certifications during the assessment conducted.
1.8
Organizational Information and Contact Person The company contact person details are as follows:
1.9
Name:
Shylaja Devi Vasudevan Nair
Designation:
Head, Sustainability Unit
Address:
Main Tower, Level 3A, Plantation Tower No.2, Jalan PJU 1A/7 Ara Damansara 47301 Petaling Jaya, Selangor Malaysia
Contact No.:
+603 78484379
Email address:
[email protected]
Time-bound Plan for Other Management Units Sime Darby Plantation Sdn Bhd is a member of RSPO and has been involved in the certification since 6 September 2004. The membership number with RSPO is 1-0008-04-00000. Sime Darby Plantation’s current upstream operations, which consist predominantly of oil palm cultivation, harvesting and milling are spread across more than 600,000 hectares of planted areas in Malaysia, Indonesia, Liberia, Papua New Guinea and Solomon Islands. Sime Darby Plantation’s land bank currently stands at 1 million hectares across these five countries.They have developed a time-bound plan (Appendix C) for the phased implementation of the RSPO P&C, commencing with mills and estates. Sime Darby Plantation Sdn Bhd will use the experience gained from achieving certification of the first few mills and estates to implement the RSPO P&C in parallel with the remainder of its operations. The SGS assessment team considers that Sime Darby Plantation Sdn Bhd is on the right track which is reasonable and challenging, given the widespread geographic locations of its properties, the resources required and the numbers of smallholders involved.
Time Bound Plan
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Findings and any action required
Compliance
Does the plan include all subsidiaries, estates and mills?
Yes
Yes
Is the time bound plan challenging?
There is no change of Time Bound Plan as compared to the Time Bound Plan recorded in the Surveillance 01 Audit 2014.
Yes
No
Yes
If there have been changes, what circumstances have occurred?
No changes
Yes
Have there been any stakeholder comments?
No complaints received
Yes
Have there been any newly acquired subsidiaries?
No
Yes
Have there been any isolated lapses in implementation of the plan?
No
Yes
Age of plantations. Location. POM development Infrastructure. Compliance with applicable law. Have there been any changes since the last audit? Are they justified?
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) Requirement
Findings and any action required
Compliance
Did the company conduct an internal audit? If so, has a positive assurance statement been produced?
Yes.
No replacement after dates defined in NIs Criterion 7.3:
No new development reported.
Yes
No new development reported st since 1 July 2010.
Yes
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.
Any new plantings since January 1st 2010 must comply
Yes
Audit conducted via the sustainability team and all input covering both negative (gaps) identified and positive remarks has been recorded and be made available to the audit team during the audit.
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with the RSPO New Plantings Procedure.
2.
Any Land conflicts are being resolved through a mutually agreed process, e.g. RSPO Grievance procedure or Dispute Settlement Facility, in accordance with RSPO criteria 6.4, 7.5 and 7.6.
No land conflict
Yes
Any Labor disputes are being resolved through a mutually agreed process, in accordance with RSPO criterion 6.3.
No labour dispute reported.
Yes
Did the company conduct an internal audit? If so, has a positive assurance statement been produced?
Yes.
Yes
Any Legal non- compliance is being resolved in accordance with the legal requirements, with reference to RSPO criteria 2.1 and 2.2.
No non-compliance reported.
Audit conducted via the sustainability team and all input covering both negative (gaps) identified and positive remarks has been recorded and be made available to the audit team during the audit. Yes
ASSESSMENT PROCESS
2.1
Certification Body SGS is the world’s leading inspection, verification, testing and certification company. SGS is recognized as the global benchmark for quality and integrity. With more than 80,000 employees, SGS operates a network of over 1,650 offices and laboratories around the world. The RSPO Programme is the SGS Group’s RSPO Certification Programme internationally accredited by the RSPO Executive Board to carry out oil palm plantation and supply chain certification/verification and accreditation for global RSPO certification.
2.2
Assessment Methodology, Programme, Site Visits The assessment was conducted in 16-19 November 2015 audit days and involving three (3) Estates of Sua Betong Business Unit and the Palm Oil Mill managed by Sime Darby Plantation Sdn Bhd. The audit covers documentation review, internal procedures, management system, field inspection as well as identification of any significant issues for both environment or social issues. A sample of stakeholders was consulted during the assessment to get their feedback on the management doing. The level of sampling to take place during a certification assessment shall include every mill and be based on a minimum sample of 0.8√y where y is the number of management sub-units. During the site assessment, the sample size of Sua Betong shall be determined by the formula (0.8√8) =2.83 round up = 3 (at least). The 3 estates sampled were PD Lukut, Salak and Sungei Bharu Estates. The assessment was conducted based on random samples and therefore nonconformities may exist which have not been identified. The methodology for objective evidence collection
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included physical site inspection, observation of tasks and processes, interview with workers, families and stakeholders, documentation review and monitoring data. The assessment program is included as shown in Table 6 below. Table 6: Assessment Program Date 16 Nov 2015
Time
Location
AM
PD-Lukut Estate
AM + PM
PD Lukut Estate
17 Nov 2015
AM + PM
Salak Estate
18 Nov 2015
AM + PM
Sungei Bharu Estate
Activities Opening Meeting Briefing by Sime Darby Briefing by SGS Malaysia Scheduling Audit at PD Lukut Estate Documentation Review; Interview with stakeholders; Workers Group interview – Harvesting & uprooting workers; Health Assistant; Caretaker in crèche. Field Visit; Harvesting, uprooting; Boundary Stone; Bufferzone and HCV. Line Site visit; Storage/Machineries Facilities; Chemical storage; Fertilizer storage; Pre-mixing area; PPE and washing area; and Scheduled waste store. Audit at Salak Estate Documentation Review; Interview with stakeholders; Workers union; Gender Committee; Workers Group interview – Harvesting & uprooting workers; and Field Visit; Harvesting, uprooting; Boundary Stone; Landfill; and Bufferzone and HCV. Line Site visit; Storage/Machineries Facilities; Chemical storage; Fertilizer storage; Pre-mixing area; PPE and washing area; Workshop; and Scheduled waste store. Audit at Sungei Bharu Estate Documentation Review; Interview with stakeholders; Workers union; Gender Committee; Workers Group interview – Harvesting & uprooting workers; and Field Visit; Harvesting, uprooting; Boundary Stone; Landfill; and Bufferzone and HCV. Line Site visit; Storage/Machineries Facilities; Chemical storage; Fertilizer storage;
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AM
Sua Betong POM
PM
Finalising Audit Findings
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Pre-mixing area; PPE and washing area; Workshop; and Scheduled waste store. Document review at the Mill Supply Chain Audit Visit to Sua Betong Palm Oil Mill Closing Meeting at Sua Betong POM Presentation of Audit Findings & Recommendation
Closing Meeting End of audit
2.3
Qualification of Lead Assessor and Assessment Team SGS Malaysia Sdn Bhd holds copies of educational qualifications, certificates and audit logs for each of the audit team members. SGS has evaluated the qualifications and experience of each audit team member and has registered the following designations for conducting RSPO Assessment. Summary of auditors’ educational background and experience are listed in Table 7 below. Table 7: Auditors Profile Evaluation Team
2.4
Notes
Team Leader – Legal & Social
Mohd Faisal Jaafar, is a degree holder in forestry from Universiti Putra Malaysia. Faisal has a 7 years experience in operating Malaysian Timber Certification Scheme with specialization in forest management certification and forest plantation management certification. As a qualified Forest Management Certification auditor, he involved mainly auditing environmental and social as well as safety and health. Has undergone the necessary RSPO Lead Auditor Training Course and ISO 14000 Lead Auditor course and has gathered substantial auditing experience pertaining to RSPO since 2012.
Auditor 1 – Environmental and Safety & Health
Abdullah Din is a forester by profession and a trained Lead Auditor with more than 5 years experience in forestry Chain of Custody (CoC) certification. He also has been involved in a number of Forest Management (FM) certification for the last 5 years. In addition , he is a Lead Auditor for RSPO ,trained by RSPO for auditing against RSPO P&C and involved in a number of plantation assessments and audit of palm oil mill
Auditor 2 – GAP and Supply Chain
Muhammad Shazaley bin Abdullah has been graduated from Universiti Malaysia Sabah in B. Sc. Hons Forestry Science. He has been working in oil palm plantation industries for some time after graduation. Having more than 3 years working experience in auditing oil palm plantation (RSPO, ISCC), he has involved in RSPO assessment since 2012 in Malaysia and Indonesia. He has successfully completed ISO 9001:2008 lead auditor course in 2013 and RSPO Lead Auditor Training in September 2013. He has been participating RSPO assessment as Observer, Audit Team Member and Lead auditor since 2012 with more than 15 days of audit and 3 audits at different organization.
Stakeholder Consultation and List of Stakeholders Contacted Stakeholder consultation took place in the form of meetings and interviews. Meetings with government agencies and NGOs were held in their respective premises within and near the estates and Sua Betong Palm Oil mill. In all the interviews and meetings the purpose of the audit was clarified at the outset followed by an evaluation of the relationship between the
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stakeholder and the company before discussions proceeded in accordance with relevant RSPO principles, criteria and indicators. See Appendix E for stakeholder’s details and comments.
3.
ASSESSMENT FINDINGS 3.1
Summary of Findings
3.1.1 Principles & Criteria As outlined, objective evidence was obtained separately for each of the RSPO Indicators and criterion for the mills and estates. The results for each indicator from each of the operational areas were evaluated to provide an assessment of conformity. A statement is provided for each of the RSPO indicators in order to support the findings of the assessment team. There is 04 Major Non-conformities and 03 Minor Non-conformities identified during this assessment. Details for each Non-conformities and observations are given in Appendix C. Major Non-conformities has been closed out within the period of 60 days after the assessment. Minor Non-compliances and Observations will be followed up during the next Annual Surveillance Audit which is scheduled to be conducted within the period of twelve months after the RSPO approval of Main Assessment. Principle 1: Commitment to Transparency Criterion 1.1: Growers and millers provide adequate information to relevant stakeholders on environmental, social and legal issues relevant to RSPO Criteria, in appropriate languages and forms to allow for effective participation in decision making. 1.1.1
There shall be evidence that growers and millers provide adequate information upon request for information on (environmental, social and/or legal) issues relevant to RSPO Criteria to relevant stakeholders for effective participation in decision making.
Findings
In compliance:
Objective evidence:
List of Stakeholders document is maintained at estates and mill visited.
Yes:
X
Minor
No:
Since last audit SOU 15 has not received any request for information on (environmental, social and/or legal) issues from stakeholders relevant to RSPO Criteria Procedure For External Communication (Appendix 5.5.3.2) of Standard Operation Manual (SOM) & Appendix 5 “Flow Chart and Procedure on Handling Social Issues” described the process of information sharing on estate’s quality, safety & health and environment, social and legal. 1.1.2
Records of requests for information and responses shall be maintained.
Major
Findings
In compliance:
Objective evidence:
Since last audit, there are no requests for information received from stakeholders. Communication with stakeholders are described in the following procedures:
Yes:
X
No:
1. Procedure for External Communication (Appendix 5.5.3.2) of Standard Operation Manual (SOM) – described the communication process on estate’s quality, safety & health information. 2. Procedure on Handling Social Issues” described the communication process on estate’s social and legal information. Criterion 1.2: Management documents are publicly available, except where this is prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes. 1.2.1
Major
Land titles / user rights (C 2.2)
Findings
In compliance:
Objective evidence:
Land titles of all estates and mill are available. These documents will be made available to all interested parties upon request.
Yes:
X
No:
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Occupational health and safety plans (Criterion 4.7);
Major
Findings
In compliance:
Objective evidence:
Occupational Safety & Health Policy updated January 2015 authorized by the Managing Director is posted in the estates and mill’s office which is publicly available. Estates and mill maintains safety & health documents that includes risk assessment ( Hazard Identification, Risk Assessment & Risk Control (HIRAC) , Emergency Preparedness and Response Plan and Procedure , training plans & training records. All safety & health documents and records maintain will be made publicly available to all interested parties upon request.
1.2.3
Yes:
X
No:
Plans and impact assessments relating to environmental and social impacts (Criteria 5.1, 6.1, 7.1 and 7.8);
Major
Findings
In compliance:
Objective evidence:
The following documents are available that document plans and impact assessment relating to environmental and social impacts: 1. Environmental Aspect and Impact Identification Form (SM/5.2/EAI) – plans assessment relating to environmental impacts
Yes:
X
No:
2. Social Impact Assessment (SIA) – plans and assessment relating to social impacts Both documents will be made available to all interested parties upon request. 1.2.4
HCV documentation summary (Criteria 5.2 and 7.3);
Findings
In compliance:
Objective evidence:
Refer to Major CAR 23 (Indicator 5.2.1)
1.2.5
Yes:
X
Major
No:
Pollution prevention and reduction plans (Criterion 5.6);
Major
Findings
In compliance:
Objective evidence:
The Pollution Prevention Plan FY2015/2016 document is available at estates and mill. This document will be made available to all interested parties upon request. The plan contains the following : a) Pollution site b) Specific pollution source c) Means of mitigation d) Baseline required e) Means of Monitoring and Action Plan
Yes:
X
No:
f) Action by staff responsible 1.2.6
Details of complaints and grievances (Criterion 6.3);
Major
Findings
In compliance:
Objective evidence:
Procedure on complaints and grievances is publicly available in the company’s website http://www.simedarbyplantation.com. The flow chart of complaints and grievances is available in Appendix 5: Flowchart and Procedure on Handling Social Issues in the Sustainability Plantation Management System dated 1 November 2008. Details of complaints and grievances are recorded in “Complaint/Grievances Book” kept by estates and mill. The book contain details of the following information: - Date of complaints - Name of complainant - Details of complaints/grievances - Actions taken - Person in-charge - Completion date The Flow Chart and records of complaints/grievances will be made available to all interested
Yes:
X
No:
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parties upon request.
1.2.7
Negotiation procedures (Criterion 6.4);
Major
Findings
In compliance:
Objective evidence:
Procedure is available as in Appendix 3 ‘Flowchart and Procedure on Handling Land Disputes in Sustainability Plantation Management System dated 1 November 2008. The document is kept at estates and mill’s office and will be made available to all interested parties upon request. The procedures are also publicly available at the company website as follow: http://www.simedarbyplantation.com/Negotiation_Procedures.aspx
1.2.8
Yes:
X
No:
Continual improvement plans (Criterion 8.1);
Findings
In compliance:
Objective evidence:
Documents established includes the followings: 1. Environmental Management Plan FY2015/2016 2. Energy Management Plan FY2015/2016 3. Social Impact Assessment Plan FY2015/2016 All the above documents will be made available to all interested parties upon request
1.2.9
Yes:
X
Major
No:
Public summary of certification assessment report;
Major
Findings
In compliance:
Objective evidence:
Public summary of last year certification report is available in the RSPO website. Full audit report is maintained by estates and mill and will be made available to all interested parties upon request.
1.2.10
Yes:
X
No:
Human Rights Policy (Criterion 6.13)
Major
Findings
In compliance:
Objective evidence:
“Social & Humanity Management Policy” authorized by the Managing Director dated January 2015 is posted at Estate and Mill office.
Yes:
X
No:
Criterion 1.3: Growers and millers commit to ethical conduct in all business operations and transactions. 1.3.1
There shall be a written policy committing to a code of ethical conduct and integrity in all operations and transactions, which shall be documented and communicated to all levels of the workforce and operations.
Minor
Findings
In compliance:
Objective evidence:
A written policy committing to code of ethical conduct and integrity in all operation and transactions by SOU 15 is clearly described in “Code of Business Conduct (COBC) established by Sime Darby st Berhad which was launched in 01 December 2011.
Yes:
X
No:
The principles of the COBC includes : - Maintains reputation for behaving fairly, honestly and ethically - Shows a collective commitment to uphold integrity throughout the Group COBC handbook is available in Malay language and available at estates and mill visited. Briefing of COBC is carried out by Human Resource department to all new employees. All employees are required to read and declare compliance with COBC. Principle 2: Compliance with Applicable Laws and Regulation Criterion 2.1: There is compliance with all applicable local, national and ratified international laws and regulations. 2.1.1
Evidence of compliance with relevant legal requirements shall be available.
Major
Findings
In compliance:
Objective evidence:
At the time of Surveillance Audit, the audit team observed that copies of legal documents are available with the compilation of a list of applicable laws and regulations at both mill and estate levels. At mill, list and copies of applicable laws and regulation are available in the List of License and Permits Folder. Examples of files/legal documents/licenses verified during the audit are as
Yes:
X*
No:
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follows: No.
Details
Validity
1.
Scheduled Control Permit (Permit Barang Kawalan Berjadual) for Diesel storage for PD Lukut Estate:- PPDNKK. NS(PD) 165/1999 SK (B) No. Permit: N014010
15 Jan 2015 to 14 Jan 2016
2.
MPOB licence 518323002000 for producing and transporting FFB for PD Lukut Estate covering an area of 1,383 ha
01 March 2015 to 29 Feb 2016
3.
Scheduled Control Permit (Permit Barang Kawalan Berjadual) for Diesel storage for PD Salak Estate:- PPDNKK. NS(PD) 20/07 SK (D) No. Permit: N014046
17 Apr 2015 to 16 Apr 2016
4.
MPOB licence 501998502000 for producing and transporting FFB for PD Lukut Estate covering an area of 2,626.81 ha
01 Apr 2015 to 31 Mar 2016
5.
Scheduled Control Permit (Permit Barang Kawalan Berjadual) for Diesel storage for PD Sungei Baru Estate:- PPDNKK. SK(M)372/84(D,P&BJ) No. Permit: M003474
26 Jan 2015 to 25 Jan 2016
6.
MPOB licence 520543002000 for producing and transporting FFB for PD Sungei Bahru Estate covering an area of 523.28 ha
01 May 2015 to 30 April 2016
7.
Lesen Menduduki atau Menggunakan Premis yang Ditetapkan from Jabatan Alam Sekitar as required under the Section 11 of the Environmental Quality Act, 1974
01 July 2015 – 30 June 2016
8.
Scheduled Control Permit (Permit Barang Kawalan Berjadual) for Diesel storage for Sua Betong POM:- NS(PD) 10/2012 P(D) No. Permit: N014237
30 October 2015 – 29 October 2016
9.
Certificate of compliance for Water Tube Boiler, Reg. No. NS PMD 938 issued by the Department of Occupational Safety and Health (DOSH) against the requirement of the Factories and Machinery (Notification, Certificate of Fitness and Inspections) Regulations, 1970 Regulation 10(2)
validity until 22 June 2016
10.
Certificate of compliance for Electric Chain Hoist, Reg. No. NS PMA 3497 issued by the Department of Occupational Safety and Health (DOSH) against the requirement of the Factories and Machinery (Notification, Certificate of Fitness and Inspections) Regulations, 1970 Regulation 10(2)
validity until 22 June 2016
11.
Certificate of compliance for Sterilizer, Reg. No. NS PMT 3067 issued by the Department of Occupational Safety and Health (DOSH) against the requirement of the Factories and Machinery (Notification, Certificate of Fitness and Inspections) Regulations, 1970 Regulation 10(2)
validity until 22 June 2016
12.
Certificate of compliance for Sterilizer, Reg. No. NS PMT 3068 issued by the Department of Occupational Safety and Health (DOSH) against the requirement of the Factories and Machinery (Notification, Certificate of Fitness and Inspections) Regulations, 1970 Regulation 10(2)
validity until 22 June 2016
13.
Certificate of compliance for Sterilizer, Reg. No. NS PMT 3069 issued by the Department of Occupational Safety and Health (DOSH) against the requirement of the Factories and Machinery (Notification, Certificate of Fitness and Inspections) Regulations, 1970 Regulation 10(2)
validity until 22 June 2016
14.
Certificate of compliance for Sterilizer, Reg. No. NS PMT 3070 issued by the Department of Occupational Safety and Health (DOSH) against the requirement of the Factories and Machinery (Notification, Certificate of Fitness and Inspections) Regulations, 1970 Regulation 10(2)
validity until 22 June 2016
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15.
Certificate of compliance for Sterilizer, Reg. No. NS PMT 3071 issued by the Department of Occupational Safety and Health (DOSH) against the requirement of the Factories and Machinery (Notification, Certificate of Fitness and Inspections) Regulations, 1970 Regulation 10(2)
validity until 22 June 2016
16.
Certificate of compliance for Sterilizer, Reg. No. NS PMT 3072 issued by the Department of Occupational Safety and Health (DOSH) against the requirement of the Factories and Machinery (Notification, Certificate of Fitness and Inspections) Regulations, 1970 Regulation 10(2)
validity until 22 June 2016
17.
Certificate of compliance for Steam Separator, Reg. No. NS PMT 3073 issued by the Department of Occupational Safety and Health (DOSH) against the requirement of the Factories and Machinery (Notification, Certificate of Fitness and Inspections) Regulations, 1970 Regulation 10(2)
validity until 22 June 2016
18.
Certificate of compliance for Back Pressure Receiver, Reg. No. NS PMT 3074 issued by the Department of Occupational Safety and Health (DOSH) against the requirement of the Factories and Machinery (Notification, Certificate of Fitness and Inspections) Regulations, 1970 Regulation 10(2)
validity until 22 June 2016
19.
Certificate of compliance for Water Softener, Reg. No. NS PMT 3075 issued by the Department of Occupational Safety and Health (DOSH) against the requirement of the Factories and Machinery (Notification, Certificate of Fitness and Inspections) Regulations, 1970 Regulation 10(2)
validity until 22 June 2016
20.
Certificate of compliance for Water Softener, Reg. No. NS PMT 3076 issued by the Department of Occupational Safety and Health (DOSH) against the requirement of the Factories and Machinery (Notification, Certificate of Fitness and Inspections) Regulations, 1970 Regulation 10(2)
validity until 22 June 2016
21.
Certificate of compliance for Deaerator Storage Tank, Reg. No. NS PMT 3077 issued by the Department of Occupational Safety and Health (DOSH) against the requirement of the Factories and Machinery (Notification, Certificate of Fitness and Inspections) Regulations, 1970 Regulation 10(2)
validity until 22 June 2016
22.
Certificate of compliance for 130 HL Deaerator Header, Reg. No. NS PMT 3078 issued by the Department of Occupational Safety and Health (DOSH) against the requirement of the Factories and Machinery (Notification, Certificate of Fitness and Inspections) Regulations, 1970 Regulation 10(2)
validity until 22 June 2016
23.
Certificate of compliance for Air Oil Separator Tank, Reg. No. NS PMT 3080 issued by the Department of Occupational Safety and Health (DOSH) against the requirement of the Factories and Machinery (Notification, Certificate of Fitness and Inspections) Regulations, 1970 Regulation 10(2)
validity until 22 June 2016
24.
Certificate of compliance for Filter Vessel, Reg. No. NS PMT 3081 issued by the Department of Occupational Safety and Health (DOSH) against the requirement of the Factories and Machinery (Notification, Certificate of Fitness and Inspections) Regulations, 1970 Regulation 10(2)
validity until 22 June 2016
25.
Certificate of compliance for Air Receiver, Reg. No. NS PMT 3215 issued by the Department of Occupational Safety and Health (DOSH) against the requirement of the Factories and Machinery (Notification, Certificate of Fitness and Inspections) Regulations, 1970 Regulation 10(2)
validity until 22 June 2016
26.
Certificate of compliance for Steam Separator, Reg. No. NS PMT 4718 issued by the Department of Occupational Safety and Health (DOSH) against the requirement of the Factories and Machinery (Notification, Certificate of Fitness and Inspections) Regulations, 1970 Regulation 10(2)
validity until 22 June 2016
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27.
Certificate of compliance for Air Receiver, Reg. No. PMT 136070 issued by the Department of Occupational Safety and Health (DOSH) against the requirement of the Factories and Machinery (Notification, Certificate of Fitness and Inspections) Regulations, 1970 Regulation 10(2)
validity until 22 June 2016
28.
MPOB licence 549681004000 for receiving, processing and 3 producing CPO Sua Betong POM with a capacity of 360,000m
01 June 2015 to 31 May 2016
29.
License to operates Palm Oil Mill issued by the Department of Environment as prescribed by the Environmental Quality (Prescribed Premises) (Crude Palm Oil) Regulations, 1977 (P.U.(A) 342/1977 and Environmental Quality (Clean Air) Regulations, 2014 (P.U.(A) 151/2014 :- license no. 002084 with a maximum capacity allowed 60mt/hr
01 July 2015 to 30 June 2016
All staffs or workers working in the boiler station are also qualified. The audit team notes that all of them has undergone an inspection and has been approved by the Department of Occupational Safety and Health (DOSH) to comply with Regulation No. 5(2) Factory and Machineries (Competency Approval-Examination) Regulations, 1970. Examples of approvals verified are as follows:
Vejian Periyasamy – Approval No. S28/2001 dated 19 November 2001; and
Alphonse Rayappan – Approval No. S31/2001 dated 20 November 2001. Besides the above, there is an Audiometric Testing Programme conducted to all workers stationed at high pitch area such as oil extraction station, kernel plant, press station, boiler plant, engine room and water treatment. Latest programme conducted in 23 June 2014 resulted in out of 59 workers inspected, 39 of them have been declared as exposed to high pitch area (as mentioned above) with a decibel above 85dB. Out of 39 workers, 9 of the workers have been declared as having hearing impairment where every year these workers are required to conduct the test to monitor their hearing status as per required within the Regulation 22(b) of the Factories and Machinery (Noise Exposure) Regulation, 1989. The auditor has sampled and interviewed several workers whom has undergone the test during the field visit and the result of the interview confirmed that they have undergone the test in 2014. In addition, the interview also confirmed all recommendations made by the occupational health doctor conducting the test where they are strictly required to wear hearing protection devices. Despite the above the audit team observed that the Certificate of Fitness issued by the Fire Department is not available during the audit. Moreover, the inspection record by the Fire Department for the purpose of issuing the Certificate of Fitness is also not available during the audit. (Major CAR 20) Closing of Major CAR: Following to the audit, the company has taken immediate action to provide the missing information via email dated 16 December 2015. The submitted information outlined explanation given by the company’s headquarters whereby as far as Port Dickson District is concerned, the Certificate of Fitness has no longer be issued, yet be replaced by the Certificate of Completion and Compliance (CCC), the new certificate introduced in compliance with the Street, Drainage and Building (Amendment) Act 2007. Based on the communication, the consultant has been appointment i.e. Perunding AME Sdn Bhd, however the budget for the assessment is still pending approval from the top management. The company envisaged that the budget will be approved during the subsequent financial year FY 2016/2017 where subsequently the consultant will conduct the inspection to issue the CCC. *Considering the action taken by the company and the written confirmation from the top management that the company has initiate the process for the application of the CCC, the audit team has agreed to close the Major CAR. However, a new Observation be issued to monitor and shall be verified during the next Surveillance Audit. Major CAR 20 closed and Observation 25 Issued 2.1.2
A documented system, which includes written information on legal requirements, shall be maintained.
Minor
Findings
In compliance:
Objective evidence:
Evidence of documented system, which includes written information on legal requirements. Sime Darby subscribes to free service for amendments updates from publishers. All relevant laws and regulations are compiled in the register of legal document – B-1-4 and are made available to the auditor during the audit.
2.1.3
Yes:
X
No:
A mechanism for ensuring compliance shall be implemented.
Minor
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Findings
In compliance:
Objective evidence:
Mechanism for ensuring that the laws are implemented is available. The mechanism to ensure compliance of law is found to be documented in Agricultural Reference Manual (ARM) which has been distributed to the SOU and is implemented throughout the Mill as well as the four estates. As reflected in the Standard Operating Manual, the management of estate and mill is required to ensure that all applicable legal requirements and other requirements to which the company is subscribe are taken into account that includes monitoring the changes of the subscribed laws and regulations. The same personnel are also responsible to ensure that the mechanism is implemented throughout the estate.
2.1.4
Yes:
X
No:
A system for tracking any changes in the law shall be implemented.
Minor
Findings
In compliance:
Objective evidence:
A system for tracking any changes in the law is available. Sime Darby has developed procedures for tracking any changes in laws. Document Standard Operating Manual 5.2 (5.2.4a) assigns responsibility for observing changes of law. As reflected in the document, the management of estate and mill is required to ensure that all applicable legal requirements and other requirements to which the company is subscribe are taken into account that includes monitoring the changes of the subscribed laws and regulations. The company also subscribes to service for updated law books from publishers, and receives information on relevant legal amendments from Malaysian Agricultural Plantation Association.
Yes:
X
No:
Criterion 2.2: The right to use the land is demonstrated, and is not legitimately contested by local people who can demonstrate that they have legal, customary or user rights. 2.2.1
Documents showing legal ownership or lease, history of land tenure (confirmation from community leaders based on history of customary land tenure, recognised Native Customary Right (NCR) land) and the actual legal use of the land shall be available.
Major
Findings
In compliance:
Objective evidence:
The land titles are available for the visited estates Based on the verification, the audit team observed that the one land title No. GRN 00060110 for PD-Lukut Estate still indicates the pre-condition for only allowed to plant Rubber, In view that the land has been planted with oil palm, there is a need for the estate to amend the land title correlate with the actual planting material planted on the land. Major CAR 21 Closing of Major CAR:
Yes:
X*
No:
The company has taken immediate action to initiate the process for transfer of condition from Rubber to Oil Palm. The process has been initiated on 25 November where the Land Management Department (LMD) has been assigned to execute the process which involves the meeting with the company’s Legal ad Secretarial Department and other government authorities such as Malaysian Company’s Commission, Land Office and State Government in particular the District Office. All in all, the above process will take more than 6 months and may last up to a year depending on the complexity of the process and application. *As the company has taken their steps to apply for the amendment into the land title, the auditor is in agreement to close the Major CAR. Nevertheless, an Observation 26 will be issued and shall be verified in the subsequent year in term of the company’s progress of the above process. Major CAR 21 closed and Observation 26 raised. 2.2.2
There is evidence that physical markers are located and visibly maintained along the legal boundaries particularly adjacent to state land, NCR land and reserves.
Minor
Findings
In compliance:
Objective evidence:
Visit to all visited estates evidence a boundary marking available along the boundary trenches. The marking is available every 100m along the boundary.
2.2.3
Yes:
X
No:
Where there are or have been disputes, additional proof of legal acquisition of title and evidence that fair compensation has been made to previous owners and occupants shall be available, and that these have been accepted with free, prior and informed consent (FPIC).
Minor
Findings
In compliance:
Objective evidence:
There is no dispute reported at the time of audit. SOU 15 estates is bordering with other either smallholders estates or surrounded with commercial and residential areas.
Yes:
X
No:
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2.2.4
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There shall be an absence of significant land conflict, unless requirements for acceptable conflict resolution processes (see Criteria 6.3 and 6.4) are implemented and accepted by the parties involved.
Major
Findings
In compliance:
Objective evidence:
There is no dispute reported at the time of audit. SOU 15 estates is bordering with other either smallholders estates or surrounded with commercial and residential areas.
2.2.5
Yes:
X
No:
For any conflict or dispute over the land, the extent of the disputed area shall be mapped out in a participatory way with involvement of affected parties (including neighbouring communities and relevant authorities where applicable).
Minor
Findings
In compliance:
Objective evidence:
There is no dispute reported at the time of audit. SOU 15 estates is bordering with other either smallholders estates or surrounded with commercial and residential areas.
2.2.6
Yes:
X
No:
To avoid escalation of conflict, there shall be no evidence that oil palm operations have instigated violence in maintaining peace and order in their current and planned operations.
Major
Findings
In compliance:
Objective evidence:
There is no dispute reported at the time of audit. SOU 15 estates is bordering with other either smallholders estates or surrounded with commercial and residential areas.
Yes:
X
No:
Criterion 2.3: Use of the land for oil palm does not diminish the legal, customary or users rights of other users without their free, prior and informed consent. 2.3.1
Maps of an appropriate scale showing the extent of recognized legal, customary or user rights (Criteria 2.2, 7.5 and 7.6) shall be developed through participatory mapping involving affected parties (including neighboring communities where applicable, and relevant authorities).
Major
Findings
In compliance:
Objective evidence:
There is no dispute reported at the time of audit. SOU 15 estates is bordering with other either smallholders estates or surrounded with commercial and residential areas.
2.3.2
Yes:
X
No:
Copies of negotiated agreements detailing the process of free, prior and informed consent (FPIC) (Criteria 2.2, 7.5 and 7.6) shall be available.
Minor
Findings
In compliance:
Objective evidence:
There is no dispute reported at the time of audit. SOU 15 estates is bordering with other either smallholders estates or surrounded with commercial and residential areas.
2.3.3
Yes:
X
No:
All relevant information shall be available in appropriate forms and languages, including assessments of impacts, proposed benefit sharing, and legal arrangements.
Minor
Findings
In compliance:
Objective evidence:
There is no dispute reported at the time of audit. SOU 15 estates is bordering with other either smallholders estates or surrounded with commercial and residential areas.
2.3.4
Yes:
X
No:
Evidence shall be available to show that communities are represented through institutions or representatives of their own choosing, including legal counsel.
Major
Findings
In compliance:
Objective evidence:
There is no dispute reported at the time of audit. SOU 15 estates is bordering with other either smallholders estates or surrounded with commercial and residential areas.
Yes:
X
No:
Principle 3: Commitment to Long-Term Economic and Financial Viability Criterion 3.1: A business or management plan (minimum three years) shall be documented that includes, where appropriate, a business case for scheme smallholders. 3.1.1
A business or management plan (minimum three years) shall be documented that includes, where appropriate, a business case for scheme smallholders.
Major
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Findings
In compliance:
Objective evidence:
Both estates have predicted five years annual expenses projection. Annual budget for FY2015/2016 to FY2020/2021 is evident in MPLAN_2015. The budget covers allocation for purposes of: a. Estate Administration b. Estate Labour Overhead c. Estate Road & Bridges d. Oil Palm Mature Upkeep e. Oil Palm Manuring f. Oil Palm Harvesting g. Oil Transport
3.1.2
Yes:
X
No:
Minor
An annual replanting programme projected for a minimum of five years (but longer where necessary to reflect the management of fragile soils, see Criterion 4.3), with yearly review, shall be available.
Findings
In compliance:
Objective evidence:
Annual replanting program projected for upcoming five years is available in Replanting Programme 2015/2016 to 2019/2020. For example; Name of Estate
Yes:
X
No:
2015/2016
2016/2017
2017/2018
2018/2019
2019/2020
Bradwall
124.82
131.57
-
-
93.98
Tampin Linggi
-
-
-
79.43
92.11
103.13
-
-
131.49
108.93
93.00
135.00
Sengkang PD Lukut Salak
147.22
150.20
-
173.60
149.35
Siliau
-
-
-
-
68.57
Sua Betong
-
108.77
112.78
75.30
-
Sungei Bharu
-
82.94
114.58
105.31
-
375.17
473.48
227.36
658.13
647.94
Total
Principle 4: Use of Appropriate Best Practices by Growers and Millers Criterion 4.1: Operating procedures are appropriately documented, consistently implemented and monitored. 4.1.1 Findings Objective evidence:
Standard Operating Procedures (SOPs) for estates and mills shall be documented. In compliance:
Yes:
X
Major
No:
a. The SOPs for plantation and mill has been documented in: - Sime Darby Agricultural Reference Manual - Oil Palm Planting (Updated on 11 Nov 2013) - Estate Quality Management System (Latest updates on 1st Nov 2008) - Mill Quality Management System Manual (Version 1: 2008) b. The SOP did cover key processes for both plantation and mill operations, such as:
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- Plantation: Seed Production Unit; Planting Density; Land Clearing and Preparation; Manuring; Weeding; Pest & Disease; Harvesting; Road Maintenance - Palm Oil Mill: Receiving FFB; Loading Ramp, Steriliser; Threshing Station; Boiler Station, Effluent Treatment Plant c. A copy of the SOP available is on site and documented in an appropriate language (English and Malay). In POM, the documented procedure is kept securely in the Managers Office. d. Site inspection conducted during the audit evidence that the SOPs are implemented and understood by workers. e. The SOPs is appropriate and adequately cover all estate and mill processes and activities. f. The SOP are kept in the estate offices and controlled by estate and assistant manager. 4.1.2 Findings Objective evidence:
A mechanism to check consistent implementation of procedures shall be in place. In compliance:
Yes:
X
Minor
No:
a. Master list of all SOPs are available in Sime Darby Agricultural Reference Manual applicable all estates. Master list for all mill operations is available in Mill Quality Management System master List. Daily inspection by POMs executive has been conducted to monitor the implementation of the SOP. b. The production unit keep and updated version for any changes or updates in the SOP. c. The following mechanism is available, for example: -
The SOP has been established in English and Malay language.
-
Internal control (e.g. field inspection) has been conducted by Plantation Advisor; Ibrahim Abdul Majid to monitor consistent implementation of SOPs as evident in Plantation Advisor Report: SOU15/01/2013-04 dated Jun 2014. Plantation Advisor is a competent personnel (by nature of working experience) to carry out the internal control activities. For consistent SOP implementation in palm oil mill, Mill Advisor has conducted inspection annually. Latest visit by MA (Mr. Shahar Abd Kadir) to Sua Betong POM has been th th conducted on 7 to 9 Jul 2015 as evident in Mill Visit Report (SOU15/SBM/01/15-16).
4.1.3
-
Field inspection audits are carried out regularly (annually) covering implementation of all the ARMs in the field. Regular inspection and monitoring are conducted by Field Staff, Assistant Estate Managers and Estate Managers.
-
Any comments, recommendation and corrective action request raised by Plantation Advisor for continuous improvement are evidence in Implementation of PA Recommendation Status: Oct 2015.
Records of monitoring and any actions taken shall be maintained and available, as appropriate.
Minor
Findings
In compliance:
Objective evidence:
Measurements or results of internal control and monitoring activities together with the records of corrective actions are evidence in Implementation of PA Recommendation Status: Oct 2015.
Yes:
X
No:
Daily inspection has been conducted by Field Staff and Assistant Manager to monitor correct usage of PPE and SOP implementation. Daily briefing and inspection has been conducted by the estate management during muster ground. 4.1.4 Findings Objective evidence:
The mill shall record the origins of all third-party sourced Fresh Fruit Bunches (FFB). In compliance:
Yes:
X
No:
a. The POM only received FFBs from its own supply base. The supplying estates are: 1.
PD-Lukut Estate
2.
Salak Estate
3.
Siliau Estate
4.
Bradwall Estate
5.
Sengkang Estate
Major
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6.
Sua Betong Estate
7.
Tampin-Linggi Estate
8.
Sungei Bahru Estate
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b. Daily and summary records of volume and origins of the FFB received are recorded in Monthly Crop Report. For example, as on Oct 2015, FFB received by the POM are: 1.
PD-Lukut Estate: 1,316.08MT
2.
Salak Estate: 0.00MT (Crop diverted to Labu POM)
3.
Siliau Estate: 3,295.46MT
4.
Bradwall Estate: 2,508.36MT
5.
Sengkang Estate: 2,074.70MT
6.
Sua Betong Estate: 4,341.63MT
7.
Tampin-Linggi Estate: 3,668.61MT
8.
Sungei Bahru Estate: 1,380.11MT
c. These records have been verified against the Weighbridge Ticket for incoming FFB. Criterion 4.2: Practices maintain soil fertility at, or where possible improve soil fertility to, a level that ensures optimal and sustained yield. 4.2.1
Findings Objective evidence:
There shall be evidence that good agriculture practices, as contained in Standard Operating Procedures (SOPs), are followed to manage soil fertility to a level that ensures optimal and sustained yield, where possible. In compliance:
Yes:
X
Minor
No:
a. SOPs for Good Agricultural Practices in managing soil fertility are available in Section 8: Manuring. b. Site inspection conducted during the audit (Field 2001D: PD Lukut) evidence that the SOPs have been implemented and monitored by mandore and field staff. Interviews conducted with the workers evidence that they have been trained with the SOP for manuring. Inspection conducted to Lubuk China division of Sg. Bahru estate found that all workers are implementing the spraying work as per stated in the SOP.
4.2.2 Findings Objective evidence:
Records of fertiliser inputs shall be maintained. In compliance:
Yes:
X
Minor
No:
a. Records of fertiliser inputs are maintained in Manuring S.B.S. Record and updated by respective Field Staff and verified by Estate Manager. For example, Field 2001D (PD Lukut) has completed the manuring program as per recommendation by Agronomist for the application of GML (2.25kg/palm) on16th Nov 2015. Sungei Bahru estate did monitor fertilizer application progress from the report available in Fertilizer Application Record. Latest application for Home Division of Sg. Bahru estate is on th 11 Oct 2015. b. It is evidence that the fertiliser application linked to the agronomic report in 2015/16 Fertilizer Recommendation Report from Mr. R. Kumaran (Principle Agronomist II). Fertilizer recommendation record for Sg. Bahru estate is evident in 2015/16 Fertilizer Recommendation – Oil Palm.
4.2.3 Findings Objective evidence:
There shall be evidence of periodic tissue and soil sampling to monitor changes in nutrient status. In compliance:
Yes:
X
Minor
No:
a. SOPs for tissue sampling procedure are evidence in Section 4: General Information for the Sustainable Plantation Management System. Soil sampling analysis will be conducted every 25 years to maintain soil nutrient status. b. Record of leaf analysis is available in Plant Analysis Test Report. Latest leaf analysis has th been conducted on 24 Nov 2014 as evident in Plant Analysis Test Report (P567/2014) for PD Lukut Estate. Leaf sampling analysis has been prepared in Summary of Leaf Nutritional Status of Palms for Sg. Bahru estate.
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c. Result of the foliar analysis has been incorporated for the manuring recommendation. 4.2.4
A nutrient recycling strategy shall be in place, and may include use of Empty Fruit Bunches (EFB), Palm Oil Mill Effluent (POME), and palm residues.
Minor
Findings
In compliance:
Objective evidence:
The production unit is applying EFB as a recycling strategy to reduce the usage of inorganic fertilizer as per recommendation from PA in Plantation Advisor Report: SOU15/01/2013-04 dated Jun 2014.
Yes:
X
No:
Areas applied with EFB have been recorded in EFB Mulching (Replanting) logbook. Criterion 4.3: Practices minimize and control erosion and degradation of soils. 4.3.1 Findings Objective evidence:
Maps of any fragile/marginal soils shall be available. In compliance:
Yes:
X
Major
No:
a. There is no fragile soils and problem soils (refer to 4.3.6) available in the audited estates. A soil map for PD-Lukut estate is evident in Soil & Manuring Block Map. Sungei Bahru estate also did not contain any fragile soils. The estate soil series are Malacca; Gajah Mati and Munchong. Soil maps for Sg. Bahru are available in Soil Series Map. b. The soil maps are geo-referenced and of appropriate scale (1:23,000).
4.3.2
A management strategy shall be in place for plantings on slopes between 9 and 25 degrees unless specified otherwise by the company’s SOP.
Minor
Guidance: Techniques that minimise soil erosion are well known and should be adopted, where appropriate. These should include practices such as ground cover management, biomass recycling, terracing, and natural regeneration or restoration instead of replanting. Findings
In compliance:
Objective evidence:
There is minimum steep area available in PD-Lukut estate as evidence in Slope, Contour & Manuring Block Map. The estate consists of 6˚ to 20˚ slopes (29.26%). Management plan for planting on slope is available in Section 4: Land Preparation of the ARM.
Yes:
X
No:
Sg. Bahru estate consists of areas of more than 25˚. The areas have been marked in Digital Slope & Contour Map. As for now, the estate has left the hilly areas as it is to let natural growth. 4.3.3
A road maintenance programme shall be in place.
Minor
Findings
In compliance:
Objective evidence:
Road maintenance programme for PD-Lukut estate is in place as evidence in Road and Bridges Maintenance Schedule for 2015/2016. For example, latest road maintenance programmes has been conducted in September 2015 for road grading. Evidence of payment made to contractors (Heok Ah Hod General Construction Sdn Bhd) is available.
Yes:
X
No:
In Sg. Bahru, road maintenance programme has been summarized in Road Grading (A&B Road) Programme for 2015/16. The programme is supported with budget and resources as evident in MPLAN_2015 (E267-PD LUKUT). The allocated budget for road and bridges maintenance is available for FY2015/2016. 4.3.4
Subsidence of peat soils shall be minimised and monitored. A documented water and ground cover management programme shall be in place.
Major
Findings
In compliance:
Objective evidence:
There is no peat soil available in the audited estates as evident in Soil & Manuring Block Map & Soil Series Map. Not applicable.
4.3.5
Yes:
X
No:
Drainability assessments where necessary will be conducted prior to replanting on peat to determine the long-term viability of the necessary drainage for oil palm growing.
Minor
Findings
In compliance:
Objective evidence:
There is no peat soil available in the audited estates as evident in Soil & Manuring Block Map &
Yes:
X
No:
GP 7003A
Page 27 of 80
Soil Series Map. Not applicable. 4.3.6
A management strategy shall be in place for other fragile and problem soils (e.g. podzols and acid sulphate soils).
Minor
Findings
In compliance:
Objective evidence:
There is no peat soil available in the audited estates as evident in Soil & Manuring Block Map & Soil Series Map. Not applicable.
Yes:
X
No:
Criterion 4.4: Practices maintain the quality and availability of surface and ground water. 4.4.1
An implemented water management plan shall be in place.
Minor
Specific Guidance: For 4.4.1: The water management plan will: Take account of the efficiency of use and renewability of sources; Ensure that the use and management of water by the operation does not result in adverse impacts on other users within the catchment area, including local communities and customary water users; Aim to ensure local communities, workers and their families have access to adequate, clean water for drinking, cooking, bathing and cleaning purposes; Avoid contamination of surface and ground water through run-off of soil, nutrients or chemicals, or as a result of inadequate disposal of waste including Palm Oil Mill Effluent (POME). Guidance: Growers and millers should address the effects of their use of water and the effects of their activities on local water resources. Findings Objective evidence:
In compliance:
Yes:
No:
X
a. Water management plan for the production unit is available and in place for mill and plantation. th
Water Management Plan for PD-Lukut estate is evident in Water Management Plan (dated 6 Jul 2015). In Sg. Bahru estate, the management plan is evident in Contingency Plan during Water Shortage for Financial Year 15/16. Records of water consumption in the estate are updated in Monthly Water Consumption by Division Monitoring.
However, the plan did not adequately include all information listed in the RSPO guidance. MINOR CAR 22. Sua Betong POM has established Water Management Plan FY2015/16. Record of action taken as stated in WMP is evident during the audit. b. The plan did include the following: - Identification of water sources: Items (SAINS, Rain Water) - Efficient use of water: Water usage monitoring at bulk meter. - Renewability of water source: Rainwater - Access of clean drinking water for clean water has been provided to all workers as main water supplies from SAINS (national grid). - Commitment to avoid surface and ground water contamination has been clearly mentioned in Section 3: Control of Erosion and river reserve guidance. c. The identified actions in the plan have been implemented in Sua Betong POM. Monitoring of BOD and water quality is evident. 4.4.2
Protection of water courses and wetlands, including maintaining and restoring appropriate riparian and other buffer zones (refer to national best practice and national guidelines) shall be demonstrated.
Major
Specific Guidance: For 4.4.2: Refer to the ‘RSPO Manual On Best Management Practices (BMP) for management and rehabilitation of natural vegetation associated with oil palm cultivation on peat’, July 2012. Findings Objective evidence:
In compliance:
Yes:
X
No:
a. There is no natural water sources/wetlands available in all estates visited. All water for domestic use is supplied from Syarikat Air Negeri Sembilan (SAINS) and Syarikat Air Melaka. b. The water courses are protected as evidence in Guidelines on River Reserve Management
GP 7003A
Page 28 of 80
th
(April 2014). The guideline has been distributed to all estates on 28 Apr 2014. Site inspection to Lubok China Division of Sg. Bahru Estate evidence that the buffer zones are well maintained. 4.4.3
Findings Objective evidence:
Appropriate treatment of mill effluent to required levels and regular monitoring of discharge quality, shall be in compliance with national regulations (Criteria 2.1 and 5.6). In compliance:
Yes:
X
Minor
No:
a. The mill effluent treatment process has been explained in Chapter 15.0: Effluent Treatment Plant of the Mill Quality Management System. b. Procedure for checking and monitoring water discharge quality (particularly BOD) is available in Table 4: Effluent Discharge Limits into Watercourses and Table 1: ETP Samples Points and Sample Size. Result of effluent quality monitoring (pH and Temperature) is recorded in Fail ETP. The record has been updated daily to monitor pH, VFA and TA levels. BOD level result is evident in Effluent Analysis Test Report. Latest report is available in Test Report No.: EP596/2015 dated nd 2 Nov 2015. c. The water discharge quality is in compliance with national regulations as stated in DOE st license (002084) dated 21 Jun 2011. The effluent discharge has been in compliance to the limit set in Jadual Pematuhan Lesen (Rujukan: ASNS (B) 31/152/000/023) as below: Land Irrigation:
4.4.4 Findings Objective evidence:
a.
BOD:
18 Jan 16
Date Closed>
21 Dec 2015
Non-Conformance:
Evidence of not compliance with relevant legal requirements Objective Evidence:
Sua Betong POM – Certificate of Fitness issued by the Fire Department has yet to be obtained. An inspection record by the Fire Department for the purpose of issuing the Certificate of Fitness is also not available. Closing of Major CAR: Following to the audit, the company has taken immediate action to provide the missing information via email dated 16 December 2015. The submitted information outlined explanation given by the company’s headquarters whereby as far as Port Dickson District is concerned, the Certificate of Fitness has no longer be issued, yet be replaced by the Certificate of Completion and Compliance (CCC), the new certificate introduced in compliance with the Street, Drainage and Building (Amendment) Act 2007. Based on the communication, the consultant has been appointment i.e. Perunding AME Sdn Bhd, however the budget for the assessment is still pending approval from the top management. The company envisaged that the budget will be approved during the subsequent financial year FY 2016/2017 where subsequently the consultant will conduct the inspection to issue the CCC. Considering the action taken by the company and the written confirmation from the top management that the company has initiate the process for the application of the CCC, the audit team has agreed to close the Major CAR. However, a new Observation be issued to monitor and be verified during the next Surveillance Audit. Close-out evidence:
M21
2.2.1
Date Recorded>
19 Nov 15
Due Date>
18 Jan 16
Date Closed>
21 Dec 2015
Non-Conformance:
Documents showing legal ownership or lease and the actual legal use of the land are not adequately available. Objective Evidence:
PD Lukut Estate – The audit team observed that one land title No. GRN 00060110 still indicates the pre-condition for only allowed to plant Rubber. In view that the land has been planted with oil palm, there is a need for the estate to amend the land title reflecting the actual planting material planted on the land. Closing of Major CAR: The company has taken immediate action to initiate the process for transfer of condition from Rubber to Oil Palm. The process has been initiated on 25 November where the Land Management Department (LMD) has been assigned to execute the process which involves the meeting with the company’s Legal ad Secretarial Department and other government authorities such as Malaysian Company’s Commission, Land Office and State Government in particular the District Office. All in all, the above process will take more than 6 months and may last up to a year depending on the complexity of the process and application. As the company has taken their steps to apply for the amendment into the land title, the auditor is in agreement to close the Major CAR. Nevertheless, an Observation 26 will be issued to be verified in the subsequent year in term of the company’s progress of the above process. Close-out evidence:
22
4.4.1
Date Recorded>
19 Nov 15
Due Date>
Next Surv
Non-Conformance:
An implemented water management plan is not in place. Objective Evidence:
Date Closed>
dd MM yyyy
GP 7003A
CAR #
Indicator
Page 58 of 80
CAR Detail
The current established Water Management Plan do not adequately include all information listed in RSPO Guidance. Close-out evidence:
M23
5.2.1
Date Recorded>
19 Nov 15
Due Date>
18 Jan 16
Date Closed>
21 Dec 2015
Non-Conformance:
High Conservation Value (HCV) assessment that includes both the planted area itself and relevant wider landscape-level considerations (such as wildlife corridors) is not available. Objective Evidence:
The HCV Assessment performed dated 2008 is not updated in accordance with the latest methodology available at global and national level. Closing of Major CAR: Following to the audit, the company has submitted a working plan for conducting and establishing a new HCV assessment. The audit team notes that the project is in progress and due to complete in Mid2016 (June-July 2016). The audit team also observed that a stakeholder consultation for the formulization of the HCV Assessment will be conducted from 04 to 08 January 2016. With the above progress, the audit team is of the view to close the Major CAR. However an Observation 27 is issued for the finalized HCV assessment report to be verified next year. Close-out evidence:
24
5.2.4
Date Recorded>
19 Nov 15
Due Date>
Next Surv
Date Closed>
dd MM yyyy
Non-Conformance:
Ongoing monitoring for the action plan is not available. Objective Evidence:
Ongoing monitoring report for current HCV Action Plan (Ref No: Action Plan HCV & Conservation Areas of Sume Darby Plantation Sdn Bhd) updated June 2015 is not clearly documented. Close-out evidence:
25
6.1.2
Date Recorded>
19 Nov 15
Due Date>
Next Surv
Date Closed>
dd MM yyyy
Non-Conformance:
The SIA has not been done with the participation of affected parties. Objective Evidence:
Sungei Baru & Salak Estate - the Stakeholder Meeting has not been participated by the Regulatory Government Agencies which responsible in enforcing rules and regulations pertaining to environmental, economic etc. Close-out evidence:
M26
6.13.1
Date Recorded>
19 Nov 15
Due Date>
18 Jan 16
Date Closed>
21 Dec 2015
Non-Conformance:
A policy to respect human rights is not communicated to all levels of the workforce and operations (see criteria 1.2 and 2.1) Objective Evidence:
Despite the Human Rights Policy i.e. Social and Humanity Rights Policy has been established, the auditing team found that the policy is not duly communicated to the workers. Close-out evidence:
GP 7003A
CAR #
Page 59 of 80
Indicator
CAR Detail
A briefing on human rights policy entitled Briefing on Social & Human Rights Policy has been conducted following to the audit on 01 December 2015 that is participated by all workers within the estates and mills. Evidences of the above briefing are forwarded to the audit team via email dated 16 December 2015.
OBSERVATIONS OBS # 01
Indicator 2.1.4
Observation Detail Date Recorded
30.11.2012
Date Closed
13.11.2014
Observation
A system for tracking any changes in the law Sua Betong follows the ‘Sime Darby Plantation – Mill Quality Management System’ on Procedure for Legal and other Requirements (Apendix 5.2.4). It states the TQEM-Plantation /Mill are responsible for the update. All Estates and Mill: the update responsibility has been transferred to Plantation Sustainability Quality Management.
A system for tracking any changes in the law. Sua Betong follows the ‘Sime Darby Plantation – Mill Quality Management System’ on Procedure for Legal and other Requirements (Apendix 5.2.4). It states the TQEMPlantation /Mill are responsible for the update. All Estates and Mill: the update responsibility has been transferred to Plantation Sustainability Quality Management (PSQM).
Follow-up evidence:
Any changes in the law are monitored by Sime Darby Plantation’s legal department and PSQM. Any updates or changes in the law are circulated to all operating unit and closely monitored by PSQM. 02
4.3.1
Date Recorded
30.11.2012
Date Closed
05.12.2012
Observation
Reference is made to the policy on slope protection and river buffer zone and the SOP on their documented evidence of practices minimizing soil erosion and degradation. It includes: a. Soil and water conservation b. Road construction c. Road Bridges and culverts Soil and contour maps are available to identify potential erosion area. However at Ldg Sg Bahru and Sengkang, no topography map was presented as evidence of availability. Follow-up evidence:
Topography map of Ladang Sungai Bharu has been submitted to the auditor.
GP 7003A
OBS # 03
Indicator 4.4.1
Page 60 of 80
Observation Detail Date Recorded
30.11.2012
Date Closed
13.11.2014
Observation
Streams within the Lubok China Division and PD Lukut Estate were maintained. Jungle plant species are also planted along the streams to establish the flora along the stream. However in Ladang Sg Baru, the stream along F2011C had some erosion and there were some slight spraying of woodies. Follow-up evidence:
Site inspection during Surveillance 01 audit evidence that all riparian within the operating unit are well maintained. 04
4.4.3
Date Recorded
30.11.2012
Date Closed
13.11.2014
Observation
As per the legal regulations, results of monitoring are submitted monthly to the Department of Environment (Jabatan Alam Sekitar). The mill also keeps a record of water quality for discharge which is allowed by Department of Environment. The records of monthly submission to the DOE, results of BOD analysis as well as daily reading of the quantity discharge is available in the DOE Return File. The water samples were also submitted to Sime Darby Laboratory for monitoring and the results signed by the lab Chemist were available. At the Sua Betong POM although the results were available, no comments were provided to explain the analysis. Follow-up evidence:
05
4.4.5
Date Recorded
30.11.2012
Date Closed
13.11.2014
Observation
In the Sua Betong POM, no monitoring records of water usage were presented although analysis is done. Follow-up evidence:
Monitoring of water usage at Sua Betong Palm Oil Mill is made available for auditors during Surveillance 01 audit as evident in Water Usage KKS Sua Betong FY2013/2014. 06
4.6.4
Date Recorded
30.11.2012
Date Closed
13.11.2014
Observation
Although it was found that Emergency Response Plan is available in the chemical store, however upon checking the displayed information, it was found that the relevant MSDS were lacking or incomplete for some of the chemicals. For example : a. PD Lukut Estate – MSDS for rodenticide Ebor Bait was lacking b. Tampin Linggi estate – MSDS for fungicide Antracol was lacking at the nursery store where it is stored. Follow-up evidence:
It is evidence that all chemical and fertilizer stores visited during Surveillance 01 audit are equipped with MSDS for all chemical stored. 07
4.8.1
Date Recorded
30.11.2012
Date Closed
13.11.2014
Observation
At the Lubuk Cina Division, we found that there was no training records for P&D sprayers and in Sengkang Estate, the Hospital Assistant do not have copies of the MSDS of the chemical used by the Estates and he has not undergone any training on chemical use awareness. Follow-up evidence:
GP 7003A
OBS #
Indicator
Page 61 of 80
Observation Detail Training program for the certification unit is available in OSH Training Plan FY 2014/2015. The training includes: a. Harvesting Induction Training b. Scheduled waste Management c. Fire Fighting Training dated 24 Jan. 2014 d. First Aid Training by Competency Management Training (M) Sdn Bhd on 16 October 2013 e. Chemical Handling Training dated 25 June 2014 f. Chemical Handling Training for Lab, WIP and Boiler dated 5 June 2014 g. HIRARC Training by QMO dated 10 Oct. 2013
08
5.2.2
Date Recorded
30.11.2012
Date Closed
13.11.2014
Observation
For the management plan for HCV habitats (including ERTs) and their conservation, the Biodiversity file was referred. The action plan – Biodiversity of Sime Darby Plantation for Sengkang Estate was available and was dated July 2012, however in Salak Estate the management plan available has not been updated since 2008-2009. Follow-up evidence:
The management plan for HCV habitat includes set aside nature conservation area, inspection and rehabilitation and habitat enhancement. The monitoring programs will be conducted annually and throughout the year, any sighting or identification on new ERT species will be recorded accordingly. 09
8.1.3
Date Recorded
30.11.2012
Date Closed
12.12.2014
Observation
There were no active recycling programmes. Follow-up evidence:
The operating unit has started recyclable waste segregation program as evident in the Corrective Action Plan for Nonconformities 2014 submitted to the auditor. 10
2.2.3
Date Recorded
17.12.2012
Date Closed
13.11.2014
Observation
Evidence that boundary stones are found within the estate and not along the perimeter adjacent to state land and other reserves are being located and visibly maintained. According to the evidence submitted it was reported that all boundary stones has been recognised – Evidence attached, however map was not submitted. So the evidence was incomplete to close the CAR. Follow-up evidence:
Evidence that boundary stones along the perimeter adjacent to state land and smallholders are being located and visibly maintained. The locations of boundary stones (sample) are evident on the ground and verified from the Boundary Map for each estate. 11
4.6.3
Date Recorded Observation
17.12.2012
Date Closed
12.12.2014
GP 7003A
OBS #
Indicator
Page 62 of 80
Observation Detail Pesticides empty containers not stored in accordance to the Occupational Safety and Health Act 1994 (Act 514) and Regulations and Orders and Pesticides Act 1974 (Act 149) and Regulations. a. Sg. Bahru: The identified re-used chemical containers were collected and recorded into the schedule waste record and kept in the schedule waste store. b. Sg Bahru Triple Rinsing Training_pg1 c. Sg Bahru Triple Rinsing Training_pg2 completed in 5th Dec 2012 d. Sengkang Estate - Refer to evidence attached: Triple Rinsing (Old training records were submitted ) From the evidence submitted , this CAR is considered closed however an observation is raised as the training record submitted was dated prior to the date of audit. As a result, an Observation is raised for the auditors to follow up during the next surveillance Follow-up evidence:
The same issues have been highlighted by auditors during Surveillance 01 audit and Major CAR 17 has been raised. The operating unit has submitted evidence to address the Major CAR by email on th 12 Dec 2014. 12
4.7.1
Date Recorded
17.12.2012
Date Closed
13.11.2014
Observation
Refer Major CAR 07 raised during Main Assessment audit. As the major shortcomings were shown to have been overcome, this Major Car is considered closed. However, since not all the accompanying minor issues were satisfactorily closed and no adequate documents were submitted as evidence, an Observation is raised for the auditors to check during the next surveillance. Follow-up evidence:
Site inspection and documents review conducted during Surveillance 01 audit evidence that all highlighted issues during Main Assessment under this requirement has been implemented. HIRARC has been updated and verified by Estate Manager and all first aid kit provided at worksite contains necessary accessories for first aid. 13
8.1.6
Date Recorded
17.12.2012
Date Closed
13.11.2014
Observation
In the documents, Corrective Action Plan for Nonconformities raised during ASA01 submitted, it is mentioned that supply chain has been briefed to all staff during staff meeting held on 14/12/2012. However this CAR (Minor CAR 15) refers to the whole P&C not only the Supply Chain, so albeit this CAR is closed, an Observation is raised. Follow-up evidence:
All interviewed personnel meets during Surveillance 01 audit has demonstrated their capabilities in the understanding and implementation of RSPO requirements at plantation level. Interview session has been conducted to gauge the knowledge of RSPO requirements by estate workers and staff during site inspection. 14
5.6.1
Date Recorded
17.12.2012
Date Closed
13.11.2014
Observation
However, the unsettled issues of CEMS under the purview of DOE regarding Stack monitoring emission still remains unresolved since the Mill was commissioned in 2011. The client submitted evidence of correspondences with the relevant parties within Sime Darby and the problem they have with the CEMS supplier as well as the problem of the data unable to continuously transmit due to communication line failures. In view of the progress and the effort made to rectify the problem, the CAR (Major CAR 11) is considered closed. However due to the unresolved issue, an Observation is raised for it to be verified again during the next assessment. Follow-up evidence:
Issues on the Stack Monitoring faced by the mill has been addressed and updated into the Environment Management Plan. The stack monitoring has been linked directly to Department of Environment as evident in Yokogawa Data Acquisition System installed at the mill.
GP 7003A
OBS # 15
Indicator 2.2.2 (Major)
Page 63 of 80
Observation Detail Date Recorded
13.11.2014
Date Closed
12.12.2014
Observation
There is evidence of land titles did not match with terms of the land title. In example: a. Land Title No. 134605 (Lot 1556; Total area 3.1768Ha) b. Land Title No. 1004 (Lot 53; Total area 0.2643Ha) Shows the term for planting of rubber (Tanah untuk tanaman jangka panjang getah). Follow-up evidence:
Sua Betong estate has highlighted the issue to change the term of the land titles to Sime Darby th Land Department on 20 Nov 2014. The issue will be handled by Sime Darby Property Department. 16
6.2.3 (Minor)
Date Recorded
13.11.2014
Date Closed
12.12.2014
Observation
Evidence that list of stakeholders at Bradwall Estate and Siliau Estate has not been update. - Siliau estate’s list did not include local community such as Kampung Saga Baru, Taman Baru Saga - Bradwall estate’s list did not include Kampung Sega Tengah and changes in Ketua Kampung Sega Ilir’s name and contact has not been update. Follow-up evidence:
List of stakeholder’s at all estate within the operating unit has been updated as evident in the updated List of Stakeholders SOU 15. The document has been submitted to auditor via email on th 12 Dec 2014. 17
4.6.2
Date Recorded
19 Nov 2015
Date Closed
Observation
There is insufficient evidence of a.i. Applied has been recorded for each product type/ha/metric tonne and made comparable with previous year. Follow-up evidence:
18
4.6.11
Date Recorded
19 Nov 2015
Date Closed
Observation
Salak Estate – it is observed that one worker i.e. Bajrang Lal (Sprayer) has not attended annual medical surveillance on 25 February 2015. His latest Medical Surveillance Record is only dated 28 February 2014. Follow-up evidence:
19
5.2.2
Date Recorded
19 Nov 2015
Date Closed
Observation
Since the current HCV Assessment performed dated 2008 is not updated, therefore the action plan document containing measures to mitigate and conserve the identified HCV and RTE is not sufficient to reflect the latest requirement of the standard. Follow-up evidence:
20
5.2.3
Date Recorded Observation
19 Nov 2015
Date Closed
GP 7003A
OBS #
Indicator
Page 64 of 80
Observation Detail As reflected earlier, since the current HCV Assessment performed dated 2008 is not updated, therefore the action plan document containing measures to mitigate and conserve the identified HCV and RTE is not sufficient to reflect the latest requirement of the standard. Follow-up evidence:
21
5.3.2
Date Recorded
19 Nov 2015
Date Closed
Observation
PD Lukut Estate & Salak Estate – Some empty chemical container found under storage was found not triple rinsed as required by the standard prior to disposal Follow-up evidence:
22
5.3.3
Date Recorded
19 Nov 2015
Date Closed
Observation
Waste Management Plan 2015/2016 indicates that recyclable waste will be collected by recycled waste subcontractor. However, in PD Lukut Estate – It was found that recyclable waste were found disposed at the landfill. Follow-up evidence:
23
5.4.1
Date Recorded
19 Nov 2015
Date Closed
Observation
Despite the above, the audit team notes that the efficiency on improving and optimize of energy could not be specified as no date or figures indicated within the plan. Follow-up evidence:
24
5.6.3
Date Recorded
19 Nov 2015
Date Closed
Observation
However, as for the GHG emission, since the facility is still in the planning phase, the monitoring system has yet to be established and implemented Follow-up evidence:
25
2.1.1
Date Recorded Observation
21 Dec 2015
Date Closed
GP 7003A
OBS #
Indicator
Page 65 of 80
Observation Detail This Observation is following to the Major CAR issued. The details is as follows: Following to the audit, the company has taken immediate action to provide the missing information via email dated 16 December 2015. The submitted information outlined explanation given by the company’s headquarters whereby as far as Port Dickson District is concerned, the Certificate of Fitness has no longer be issued, yet be replaced by the Certificate of Completion and Compliance (CCC), the new certificate introduced in compliance with the Street, Drainage and Building (Amendment) Act 2007. Based on the communication, the consultant has been appointment i.e. Perunding AME Sdn Bhd, however the budget for the assessment is still pending approval from the top management. The company envisaged that the budget will be approved during the subsequent financial year FY 2016/2017 where subsequently the consultant will conduct the inspection to issue the CCC. Considering the action taken by the company and the written confirmation from the top management that the company has initiate the process for the application of the CCC, the audit team has agreed to close the Major CAR. However, a new Observation be issued to monitor and be verified during the next Surveillance Audit. Follow-up evidence:
26
2.2.1
Date Recorded
21 Dec 2015
Date Closed
Observation
This Observation is following to the Major CAR issued. The details is as follows: The company has taken immediate action to initiate the process for transfer of condition from Rubber to Oil Palm. The process has been initiated on 25 November where the Land Management Department (LMD) has been assigned to execute the process which involves the meeting with the company’s Legal ad Secretarial Department and other government authorities such as Malaysian Company’s Commission, Land Office and State Government in particular the District Office. All in all, the above process will take more than 6 months and may last up to a year depending on the complexity of the process and application. As the company has taken their steps to apply for the amendment into the land title, the auditor is in agreement to close the Major CAR. Nevertheless, an Observation 26 will be issued to be verified in the subsequent year in term of the company’s progress of the above process. Follow-up evidence:
27
5.2.1
Date Recorded
21 Dec 2015
Date Closed
Observation
This Observation is following to the Major CAR issued. The details is as follows: Following to the audit, the company has submitted a working plan for conducting and establishing a new HCV assessment. The audit team notes that the project is in progress and due to complete in Mid-2016 (June-July 2016). The audit team also observed that a stakeholder consultation for the formulization of the HCV Assessment will be conducted from 04 to 08 January 2016. With the above progress, the audit team is of the view to close the Major CAR. However an Observation 27 is issued for the finalized HCV assessment report to be verified next year. Follow-up evidence:
GP 7003A
Page 66 of 80
APPENDIX B: NON-CONFORMITIES PREVIOUSLY IDENTIFIED CAR #
Indicator
01
2.2.3
CAR Detail Date Recorded>
30 Nov 12
Due Date>
Next surv
Date Closed>
17/12/12
Non-Conformance:
Evidence that boundary stones are found within the estate and not along the perimeter adjacent to state land and other reserves are being located and visibly maintained. Objective Evidence:
Boundary has been mapped by the PAU, TTAS, R&D Carey Island GPS Department 2008. Only some of the boundary stones remain in most of the estates and these are marked. For example in PD Lukut, the boundary marker found at the border in field 02B (adjacent to a housing project) was visited. N02◦ 30’ 46.1”, E 101◦ 50’ 38.4”. Sengkang: Documented evidence showed that the Boundary stone located within the estate compound. Close-out evidence:
According to the evidence submitted it was reported that all boundary stones has been recognised – Evidence attached, however map was not submitted. So the evidence was incomplete to close the CAR. An observation is raised for the auditors to verify during the next surveillance. Minor CAR 01 – Closed and Observation 10 Raised 02
4.1.2
Date Recorded>
30th Nov 12
Due Date>
Next surv
Date Closed>
05/12/12
Non-Conformance:
Records of monitoring and the actions taken are not maintained and kept for a minimum of 12 months. Objective Evidence:
Monitoring of triple rinsing procedure was not conducted in Sengkang estate. Close-out evidence:
Submitted evidence of training on triple rinsing and its monitoring based on the procedure provided by Sungai Baru Estate. 03
4.2.2
Date Recorded>
30th Nov 12
Due Date>
Next surv
Date Closed>
05/12/12
Non-Conformance:
Evidence of periodic tissue and soil sampling to monitor changes in nutrient status is unavailable. Objective Evidence:
Results of soil sampling are not available in the estate. Foliar analysis result was not found in the correct file during the audit. Leaf sampling was done in June 2012 and the results were available. It was found to be included in the 2012/13 agronomic & fertiliser recommendation dated 27th June 2012. In Sungei Bahru the foliar analysis result was found in the ‘Fertiliser Damage Claims’ file However in Sungai Bahru/Salak and Sengkang estate the soil sampling results was not able to be presented. Close-out evidence:
Refer to evidence attached: i. Sg Bahru Soil Analysis Result_pg1 ii. Sg Bahru Soil Analysis Result_pg2 Sengkang Soil Analysis being carried out. 04
4.4.7
Date Recorded>
30th Nov 12
Due Date>
Non-Conformance:
No evidence of water management plans. Objective Evidence:
Next surv
Date Closed>
13 Nov 2014
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CAR Detail
For evidence of water management plans the Water Management file was referred. It was found that in PD Lukut Estate and in Sengkang Estate, water usage records are lacking (eventually found in the ‘working account’ file). The plan is incomplete as it only include : Water reduction plan Water contingency plan Water management plan for immature Rainfall data Similarly as in 4.4.5, water usage was also not monitored at the mill. Close-out evidence:
Please refer to Minor CAR 16 as the finding during Main Assessment has not been addressed adequately during Surveillance 01 audit. 05
4.5.4
Date Recorded>
30th Nov 12
Due Date>
Next surv
Date Closed>
17/12/12
Non-Conformance:
Monitoring of pesticide usage units per hectare or per ton crop is not available. Objective Evidence:
Reference is made to the : Environmental Impact Assessment file Monitoring of total pesticide active ingredient usage per hectare and per tonne FFB Production is available. PD Lukut: Ref: Total Pesticide usage per MT files Monitoring done on a monthly basis. Includes both insecticide as well as herbicide Month
kg a.i /ha
kg a.i / FFB
Oct ‘12
0.75
0.29
Sept ‘12
0.88
0.33
Aug ‘12
0.63
0.26
Both tabulated and graphical presentation available. However in Sungai Bahru Estate, no monitoring of herbicide was presented during the audit. Close-out evidence:
Refer to evidence attached: i. Sg Bahru Herbicide Usage_pg1 ii. Sg Bahru Herbicide Usage_pg2 M06
4.6.3
Date Recorded>
30th Nov 12
Due Date>
30th Jan 2013
Date Closed>
17/12/12
Non-Conformance:
Pesticides empty containers not stored in accordance to the Occupational Safety and Health Act 1994 (Act 514) and Regulations and Orders and Pesticides Act 1974 (Act 149) and Regulations. Objective Evidence:
The chemical storage sites at Lubok China Division, PD Lukut estate are maintained in good condition with the proper ventilation, lighting, sound roofing and walls with lockable door. However the followings were some of the non-conformities found concerning the disposal of the empty containers: a. Sungai. Bahru Lubuk Cina Division : Reuse of empty chemical container as a fertiliser container b. PD Lukut Estate : Reuse of chemical container in found in Badang ( during Muster ), use as a loose fruit scraper and a dust pan ( Sengkang Div 1 surau ) c. Sungai. Bahru Lubuk Cina Division, Home Division & PD Lukut & Sengkang Div 1 Chemical containers were not properly rinsed using the triple rinse method as required as chemical residue was still evident. Close-out evidence:
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a.
Sg. Bahru: The identified re-used chemical containers were collected and recorded into the schedule waste record and kept in the schedule waste store. b. Sg Bahru Triple Rinsing Training_pg1 c. Sg Bahru Triple Rinsing Training_pg2 completed in 5th Dec 2012 d. Sengkang Estate - Refer to evidence attached:Triple Rinsing ( Old training records were submitted ) e. From the evidence submitted , this CAR is considered closed however an observation is raised as the training record submitted was dated prior to the date of audit. As a result, an Observation is raised for the auditors to follow up during the next surveillance Major CAR 06 – Closed and Observation 11 – Raised M07
4.7.1
Date Recorded>
30th Nov 12
Due Date>
30th Jan 2013
Date Closed>
17/12/12
Non-Conformance:
Incomplete evidence of documented Occupational Safety Health (OSH) plan which is in compliance with OSH Act 1994 and Factory and Machinery Act 1967 (Act 139) Objective Evidence:
The following are the non-conformities identified during the audit: a. It was sighted that the risk assessment for Sua Betong POM, Sungai Bahru Estate and Bradwall has not been updated to cater for accident that occurred during the validity of the HIRARC for FY 12/13. b. Although SOU 15 has a PPE matrix records to identify the PPE required for the various field operations, records of PPE issuance FY 12/13 is yet to be made at Sengkang Division 1, PPE gloves were issued to the harvester but not used as the worker complain of being too slippery. In PD Lukut, one of the manuring workers had only one glove during the operation. Similarly, in Bradwall estate, manuring worker was using damaged rubber gloves due to the delayed in the replacement of the PPE. c. In PD Lukut Estate, the responsible person- En Faris Abdtholuddin, Asst Manager, (Jan 2nd, 2012) was appointed as the Safety Officer. However there was no appointment of Safety and Health Officer at the Sua Betong POM. d. ERP was sighted in the chemical store in PD Lukut Estate while in Sengkang Div 1, the ERP was placed at the workshop. e. PD Lukut Estate - First aid kit was missing from the Manuring mandore. f. Checks on first aid kits showed that they did not contain the same medicines and emergency treatment accessories. g. POM: first aid kit lacking at Grading Station, No appointed safety and health officer. h. Tampin Linggi Estate: Harvester on motorbike carrying harvesting sickle without the protective sheath, Nursery mandore – not trained/ not familiar with the contents in the first aid kit. First aid kits contain pills which were not supposed to be in. Close-out evidence:
On 11/1/13, Sua Betong POM submitted evidence that a First Aid Kit has been provided at the Grading Station. The risk assessment was updated and submitted. It was done by Mr Yogeswaran.Kandasamy, QMO NS ZONE 2 PSQM who is also in charge of Safety and Health for Sua Betong Oil Mill. Sengkang Estate - First Aid kit has been placed in the van accordingly with labelling As the major shortcomings were shown to have been overcome, this Major Car is considered closed. However, since not all the accompanying minor issues were satisfactorily closed and no adequate documents were submitted as evidence, an Observation is raised for the auditors to check during the next surveillance. Major CAR 07 Closed and Observation 12 – Raised 08
5.1.2
Date Recorded>
30th Nov 12
Due Date>
Next surv
Date Closed>
11 Nov 2014
Non-Conformance:
Environmental improvement plan to mitigate the negative impacts and promote the positive ones, is not developed, implemented and monitored.
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CAR Detail Objective Evidence:
In SOU 15, a form known as ‘Quality/Safety/Environment management programme (for FY 2012/13) is used for the implementation of environmental improvement plan. It is used to monitor or track the implementation at 6 monthly intervals. e.g. in Sengkang Division 1 estate uses the form to identify the environmental improvement plan to mitigate the negative impacts and promote the positive ones of the problem issue of ‘to reduce oil spillage and avoid ground spillage Nevertheless in Salak Estate no updated on Environment Improvement plan (2008/9) (e.g. Biodiversity, waste management, water usage) was carried out. Similarly, although the Environmental Management Plan for Sua Betong Palm Oil Mill FY11/12 is available, the action plan has yet to be updated accordingly. In the mill the same environmental management plan was found in FY12/13. Since April 2011, same issue such as CEMS still unable to resolve. Close-out evidence:
All estates in the certification unit have updated the Environmental Improvement Plan FY14/15 as evident during Surveillance 01 audit. Sua Betong POM has installed CEMS as evident in Yokogawa Data Acquisition System. 09
5.3.2
Date Recorded>
30th Nov 12
Due Date>
Next surv
Date Closed>
11 Nov 2014
Non-Conformance:
Having identified wastes and pollutants, an operational plan has not been developed and implemented, to avoid or reduce pollution. Objective Evidence:
Although SOU 15 has procedures , the followings were found to be in non-conformity: a. In Sengkang Div 1 Estate and in Sungai Bahru Lubok Cina division, workers have indiscriminately disposed of their motorcycle 4T /2T containers and its black oil into the domestic waste bins. b. The recycled bins were not used as per the waste identified. ( the waste was not segregated ) c. In Bradwall Estate, empty paint containers were not placed in the Schedule Waste site which is supposed to be categorized and disposed under schedule waste. SW417 d. In Sengkang: a. No scheduled code for the empty pesticide container. b. Oil stain with the saw dust was found on the ground near the storage area ( improper spill kit usage, Oily chemical sump with dead beetles and chemical container covers, Domestic waste / Festival celebration waste improperly disposed ( at frond stack ), Records of disposal incomplete as it records only one disposal for 2012 e. In PD Lukut Estate, the Scheduled Waste storage lubricants do not have an oil trap as well as spill kit. f. At the POM, Scheduled Waste Drum was used as a stool at the Grading Station and thrown into the Scrap yard site. At the Storage area, spill kit was lacking. Soiled and Oily rags were thrown indiscriminately. Close-out evidence:
The certification unit has presented evidence of corrective action taken to address the findings during Surveillance 01 audit. a. Sengkang Estate has conducted Gotong Royong to collect all schedule waste on 16 Mar 2014. b. Sengkang Estate has allocated additional Recycle Bin to promote waste segregation among the workers. c. The certification unit has assigned Scheduled Waste code at all schedule waste store. d. All scheduled waste drum at Sua Betong palm oil mill have been collected and recorded in Schedule Waste Record. 10
5.5.3
Date Recorded>
30th Nov 12
Due Date>
Next surv
Non-Conformance:
Evidence of burning waste (including domestic waste). Objective Evidence:
Date Closed>
17/12/12
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Evidence of burning waste at the linesite. In Sengkang Estate, some burning of domestic waste was seen at line site. Close-out evidence:
In Sengkang Estate, the site for burning domestic wastes has been cleared and signboard prohibiting burning has been erected accordingly. Refer evidence. A briefing cum training session was held to warn and remind the workers against this prohibited practice. M11
5.6.1
Date Recorded>
30th Nov 12
Due Date>
30th Jan 2013
Date Closed>
17/12/12
Non-Conformance:
No documented plans to mitigate all polluting activities. Objective Evidence:
A documented plan to mitigate all polluting activities is available. Environment Management Programme to mitigate polluting activities for financial year 2012/2013 is in place and implemented. The SOU Betong has the waste management action plan for 2012/2013. The management plan focused on POME, air pollution and contamination of the natural water course. The preventive management on pollution has been updated annually (latest version FY12/13). However, the unsettled issues of CEMS under the purview of DOE regarding Stack monitoring emission still remains unresolved since the Mill was commissioned in 2011. Close-out evidence:
The client submitted evidence of correspondences with the relevant parties within Sime Darby and the problem they have with the CEMS supplier as well as the problem of the data unable to continuously transmit due to communication line failures. In view of the progress and the effort made to rectify the problem, the CAR is considered closed. However due to the unresolved issue, an Observation is raised for it to be verified again during the next assessment. Major CAR 11 – closed and Observation 14 – Raised 12
5.6.2
Date Recorded>
30th Nov 12
Due Date>
Next surv
Date Closed>
11 Nov 2014
Non-Conformance:
Plans are not reviewed annually. Objective Evidence:
In Sengkang estate, the pollution prevention plans were not reviewed annually as the last plan was conducted on 19th May 2009. Close-out evidence:
It is evident that Pollution Prevention Plan for the certification unit has been reviewed annually as evident in Pollution Prevention Plan FY2014/2015. 13
5.6.3
Date Recorded>
30th Nov 12
Due Date>
Next surv
Date Closed>
11 Nov 2014
Non-Conformance:
Monitor and reduce peat subsidence rate through water table management. Objective Evidence:
There is no plan on water table management for the small peat area (4 ha) in Sengkang estate. Close-out evidence:
2014 Agronomic & Fertilizer Recommendation Report – Oil Palm has identified that Field E2000F at Sengkang Estate (Div. 2) are not peat. The field is classified as Malacca, Durian and Bungor series. 14
6.3.2
Date Recorded>
30th Nov 12
Due Date>
Next Surv
Date Closed>
Non-Conformance:
The system did not resolve disputes in an effective, timely and appropriate manner.
11 Nov 2014
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CAR Detail Objective Evidence:
The established grievance procedures specify the estimated time that is required to be taken for each of the process to be addressed before proceed to the subsequent process. Grievance regarding the wages has been resolved in 2011 while the issues pertaining to encroachment of cattle into estates, the auditing team noted that the cattle encroachment issue has yet to be resolved pending negotiations with the cattle owners. All records covering the discussion, meeting and consultation held with the owners of the cattle is maintained. On 30/4/12 there was a letter by Bazin Husin of Kg Pinang Dalam who wrote in concerning a. Road & old palms leaning dangerously over the road b. Drainage and water that damage the villages fence Although the SOU 15 management reported that action has been taken, no documented evidence for its closure was seen and not recorded in the complaint book. Close-out evidence:
PD Lukut estate has provided evidence that all issues raised by stakeholders have been addressed in a timely manner. Action has been taken to address request from Mr. Bazin Husing by recorded in the complaint book in June 2014. A letter to confirm the action taken has been sent to Mr. Bazin Husin as a feedback from Sime Darby management. Surveillance 01 audit team evidence that all complaint recorded in the complaint book has been addressed by estate management in a timely manner. Record of the action taken is available at all individual estate. 15
8.1.6
Date Recorded>
30th Nov 12
Due Date>
Next surv
Date Closed>
17/12/12
Non-Conformance:
Inadequate mechanism to capture the performance and expenditure in social and environmental aspects. Objective Evidence:
Coordination between relevant divisions within Sime Darby Plantation Sdn Bhd are still lacking e.g need to update the estate and the mill concerning new issues such as the RSPO Supply Chain Standard, training and documentation assistance was lacking in the preparation of the unit for the audit. Newly transferred staffs need to be aware of the Unit’s RSPO commitments and its updated documentation. Close-out evidence:
In the documents , Corrective Action Plan for Nonconformities raised during ASA01, submitted, it is mentioned ‘ Supply chain has been briefed to all staff during staff meeting held on 14/12/2012’ . However this CAR refers to the whole P&C not only the Supply Chain, so albeit this CAR is closed, an Observation is raised. Minor CAR 15 – closed and Observation 13 – Raised 16
4.4.7 (Minor)
Date Recorded>
13.11.14
Due Date>
12.11.15
Date Closed>
12.12.14
Non-Conformance:
Water management plans for the certification unit did not contain relevant information as per RSPO P&C for Sustainable Palm Oil Production. Objective Evidence:
The document is insufficient to include: a. Taking account of the efficiency of use and renewability of sources. b. Ensuring that the use of water does not result in adverse impacts on other users. c. Avoiding contamination of surface and ground water through run-off of soil, nutrients or chemicals, or as a result of inadequate disposal of waste including POME. d. Appropriate treatment of mill effluent and regular monitoring of discharge quality, which should be in compliance with national regulations. Updated Water Management Plan submitted to address these findings, the submitted plan is sufficient to indicate the Action Plan and Management Plan as required by the standard.
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CAR Detail Close-out evidence:
Updated water management plan. M17
4.6.3 (Major)
Date Recorded>
Due Date>
13.11.14
12.02.15
Date Closed>
18.12.14
Non-Conformance:
Pesticides empty containers are not stored in accordance to the Occupational Safety and Health Act 1994 (Act 514) and Regulations and Orders and Pesticides Act 1974 (Act 149) and Regulations. Objective Evidence:
Empty containers were found not triple rinsed prior to storage (Sua Betong & Siliau) and evidence of empty containers kept at the line site (Bradwall Estate). Close-out evidence:
The certification unit has provided evidence of training has been conducted to relevant personnel (from all estates) for handling of empty chemical containers and waste management. Documented evidence th of the training conducted is evident in Training Attendance Record by Zone conducted on 7 Nov 2014. The training has been conducted by Mr. Mohd Azlirahizal (ESH Department). Practical training for workers handling chemical containers has been conducted at all estates in the certification unit as below (in example): th
a. Sua Betong estate: 13 Nov 2014 th
b. Siliau estate: 30 Nov 2014 th
All supportive documents and evidence have been submitted through email on 12 December 2014. 18
5.3.2 (Minor)
Date Recorded>
13.11.14
Due Date>
12.11.15
Date Closed>
12.12.14
Non-Conformance:
Identified wastes and pollutants were not properly handled to avoid or reduce pollution. Objective Evidence:
Waste management plan for the certification unit has been established (Waste Management Plan FY2014/2015). However, there is evidence of inconsistencies in the implementation of the management plan. In example: a. Visit to Sua Betong workshop evidence that no spill kit is available and oil spillage on the ground. b. Oil trap installed at diesel storage area is not functioning. c. Schedule waste (i.e.: used cloth, lubricant drum, paint container) found disposed in not in a proper manner (i.e.: workshop, temple). Close-out evidence:
The operating unit has submitted evidence to address this finding where all necessary action has been taken at the identified areas. The action taken and continuous improvement plan is evident in th Corrective Action Plan for Nonconformities 2014 submitted through email on 12 Dec 2014. M19
8.1.3 (Major)
Date Recorded>
13.11.14
Due Date>
12.02.15
Date Closed>
18.12.14
Non-Conformance:
Recycling programme has not actively implemented at all estates. Objective Evidence:
At Bradwall Estate, there is an evidences that delivery record of used paper & bottles (recyclable wastes) being collected by authorized collector. At other estate (i.e. Sua Betong Estate), the recyclable wastes were found disposed at the landfill. Visit to line site at Bradwall & Sua Betong found that recyclable wastes in the dustbin are mixed with other domestic wastes. Close-out evidence:
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CAR Detail
The certification unit has conducted Waste Management Training for all estates representative at Sua th Betong Training Centre on 7 Nov 2014. The training has been attended by 73 personnel as evident in Training Attendance Record. Sua Betong estate has decided to appoint external waste collector to dispose domestic waste sources from the estate. Contract with the collector is evident in LSB/AAQ/06/2014. Sua Betong estate has appointed Aslam Bin Abd Quddus as approved collector for recyclable item and domestic waste collection. Bradwall estate has start recyclable waste segregation program as required by the standard. The estate has appointed Biopride Sdn Bhd as the collector for recyclable waste collected within the estate.
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APPENDIX C: TIMEBOUND PLAN
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APPENDIX D: LIST OF STAKEHOLDERS CONTACTED
Stakeholder
Type of Stakeholder
Issues raised
Comments/Action Taken
Harvesters, sprayers, manurers, Mandores, staff, HA, Gender Committee etc.
Internal Stakeholders
There is no issue highlighted by the internal stakeholders. All accommodation and support provided by the estate management are in acceptable condition. Payment of salary has been made according to the agreement signed by the workers at the date of join. Legal documents (passport & working permit) are kept by the estate management to ensure the safeguard. Such documents are provided to the workers when they requested. There is a document signed by the workers to confirm that the workers are not forced to surrender their passport to the management. Interview with several workers found out that they did not fully aware on paid leave, insurance, travelling expenses, funeral expenses, annual attendance, medical leave and etc stated in the direct contract of employment.
Training or explanation on direct contract employment need to be done by the management
