SGS RSPO (Principles & Criteria)
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RSPO PRINCIPLES & CRITERIA CERTIFICATION REPORT Public Summary Information Certificate No.:
SGS-RSPO-PM/ MY14/01364
Validity Period:
18 Feb 2014 – 17 Feb 2019
MY03140
Project Number: Report Ref. No.:
MY03140-SOU 15 Sua Betong Re- Assessment 2012 Report
RSPO Membership No.:
1-0008-04-000-00.
Client Name:
Sime Darby Plantation Sdn Bhd
Website:
http://www.simedarby.com
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: Segregation) of RSPO Supply Chain and RSPO MY-NI standard.
Type of Certificate Holder:
INDIVIDUAL
Number of Mill:
1
Number of Sites:
1
Mill Capacity:
60 MT/Hr
Annual CPO Produced (MT): FY 11/12 (Table 3 )
54,939.59
Address:
Head Office Main Tower, Level 3, Plantation Tower No.2, Jalan PJU 1A/7 Ara Damansara 47301 Petaling Jaya, Selangor Malaysia Tel: (603) 7848 4000 Fax: (603) 7848 4172.
Street and number: Town/City State/Country Zip/Postal code Country
Contact Person: Puan Sabarinah Marzuky Head, RSPO & Certification Unit Tel: +603 78484388 E-mail:
[email protected]
Mill Address Sua Betong Oil Mill KM22, Jalan Linggi 71050 Sirusa Port Dickson Negeri Sembilan
Mill Contact Person: Wan Syaril Izan B. Wan Sobri , Pengurus Kanan
Malaysia.
Tel : (606) 6460118 / 019 6663756 Fax : (606) 6460119
[email protected] Country:
Malaysia
Plantation Unit Being Evaluated:
Supply Base Name & Address Sua Betong palm oil mill and its supply base plantations in SOU 15Sua Betong, Port Dickson, Negeri Sembilan.
Total Certified Area (Ha):
18,747.56
Total FFB Produced (MT):
313,956.17
FY 11/12( Table 5 )
End of Public Summary
SGS RSPO, SGS (Malaysia) Sdn. Bhd., No. 26, Jalan Anggerik Vanilla, 31/93, Kota Kemuning, 40460 Shah Alam, Malaysia CONTACT PERSON: ABDUL HAYE SEMAIL Tel: +6 (03)5121 2320 - Fax: +6 (03)5122 5927 WWW.SGS.COM
SGS RSPO (Principles & Criteria)
Doc. Number:
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Doc. Version date:
01 April 2013 2 of 80
Page:
BASIC EVALUATION INFORMATION MAIN EVALUATION th
th
Evaluation Dates:
26 – 30 November 2012
Team Leader/Team:
James Ong
Affiliate Project Manager:
Date: th
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
th th
SURVEILLANCE 1 Evaluation Dates: Team Leader/Team: Affiliate Project Manager:
Date:
Report reviewed & approved by:
Date:
Certification approved by:
Date:
Database logged by:
Date:
SURVEILLANCE 2 Evaluation Dates: Team Leader/Team: Affiliate Project Manager:
Date:
Report reviewed & approved by:
Date:
Certification approved by:
Date:
Database logged by:
Date:
SURVEILLANCE 3 Evaluation Dates: Team Leader/Team: Affiliate Project Manager:
Date:
Report reviewed & approved by:
Date:
Certification approved by:
Date:
Database logged by:
Date:
SURVEILLANCE 4 Evaluation Dates: Team Leader/Team: Affiliate Project Manager:
Date:
Report reviewed & approved by:
Date:
Certification approved by:
Date:
Database logged by:
Date:
SGS RSPO, SGS (Malaysia) Sdn. Bhd., No. 26, Jalan Anggerik Vanilla, 31/93, Kota Kemuning, 40460 Shah Alam, Malaysia CONTACT PERSON: ABDUL HAYE SEMAIL Tel: +6 (03)5121 2320 - Fax: +6 (03)5122 5927 WWW.SGS.COM
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TABLE OF CONTENTS SUMMARY ............................................................................................................................................................... 4 List of Abbreviation ................................................................................................................................................ 5 1.
scope of certification assessment ......................................................................................................... 6 1.1
National Interpretation Used ..................................................................................................................... 6
1.2
Certification Scope .................................................................................................................................... 7
1.3
Location and Maps .................................................................................................................................... 7
1.4
Description of Supply Base and Mill Processing Capacity ...................................................................... 14
1.5
Date of Planting and Cycle ..................................................................................................................... 14
1.6
Other Certification Held ........................................................................................................................... 16
1.7
Organizational Information and Contact Person ..................................................................................... 16
1.8
Time-bound Plan for Other Management Units ...................................................................................... 16
1.9
Area of Plantation ................................................................................................................................... 16
1.10
2.
3.
4.
Date Certificate Issued and Scope of Certificate ................................................................................ 17
Assessment Process ............................................................................................................................. 17 2.1
Certification Body .................................................................................................................................... 17
2.2
Assessment Methodology, Programme, Site Visits ................................................................................ 17
2.3
Qualification of Lead Assessor and Assessment Team.......................................................................... 19
2.4
Stakeholder Consultation and List of Stakeholders Contacted ............................................................... 19
Assessment Findings ............................................................................................................................ 20 3.1
Summary of Findings .............................................................................................................................. 20
3.2
Corrective Action Request ...................................................................................................................... 60
3.3
Noteworthy Positive & Negative Observation ......................................................................................... 61
3.4
Status of Non-Conformities Previously Identified .................................................................................... 61
3.5
Issues Raised by Stakeholders and Findings ......................................................................................... 61
Acknowledgement of Organization Internal Responsibility .............................................................. 61 4.1
Date of Next Surveillance Visit ................................................................................................................ 61
4.2
Date of Closing Non-Conformities .......................................................................................................... 61
4.3
Acknowledgement of Internal Responsibility and Formal Sign-off Assessment Findings ....................... 62
APPENDIX A: CORRECTIVE ACTION REQUEST & OBSERVATION ................................................................ 63 APPENDIX B: NON-CONFORMITIES PREVIOUSLY IDENTIFIED ..................................................................... 77 APPENDIX C: TIMEBOUND PLAN ....................................................................................................................... 78 APPENDIX D: LIST OF STAKEHOLDERS CONTACTED.................................................................................... 80
LIST OF TABLES Table 1: Mill and Supply GPS Location ............................................................................................................... 7 Table 2 : Production Area, HCV, Certified area, FFB Yield etc ......................................................................... 14 Table 3: Sua Betong Oil Mill Summary FY 2011/2012 ( July 2011-June 2012) ............................................... 14 Table 4 : Summary of Estate crop age profile and area in SOU 15, Sua Betong............................................. 15 Table 5: FFB Production for all Supply Base Estates for SOU 15 .................................................................... 15 Table 6 Area Statement of the Supplying Estates ............................................................................................ 16
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Table 7 : Assessment Programme .................................................................................................................... 18 Table 8 : Auditor's Profile ................................................................................................................................... 19 LIST OF FIGURES Figure 1: Location Map for the various Estates and Mills within Peninsular ...................................................... 8 Figure 2: Location Map of Estates and mill of SOU 15 ....................................................................................... 9 Figure 3 : Ladang Sungai Baru Estate & its Divisions ......................................................................................... 9 Figure 4 : Home Division .................................................................................................................................... 10 Figure 5 : Ayer Molek Division............................................................................................................................ 11 Figure 6 : Bukit Bachang Division ...................................................................................................................... 12 Figure 7 : Lubok Cina division ............................................................................................................................ 13
LIST OF APPENDICES Refer to above
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:
Oil palm cultivation
Agribusiness & Food
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 Div DOE EFB EIA EMS EQA ERT ESA FFA FFB FR Ha HCV HDPE IPM ISO IUCN JCC JUPEM K kW LE M Mg Mm Mt MYNI N NGO NLE OA OER OSH P P&C PK POM POME PPE PT SOP Sdn Bhd SEIA Sg SGS SOP SOU SPC USECHH WHO yr
Meanings Corrective Action Request Chemical Health Risk Assessment Crude Palm Oil Department of Drainage and Irrigation, Malaysia Division 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 Labu Estate Meter Magnesium Millimeter Metric ton Malaysia National Interpretation Nitrogen Non Governmental Organisation New Labu Estate Orang Asli (Indigenous People) Oil Extraction Rate Occupational Safety & Health Phosphate Principles and Criteria Palm Kernel Palm Oil Mill 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 or River Societe Generale de Surveillance Standard Operating Procedures Strategic Operating Unit 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
Background
Sime Darby Plantation Sdn Bhd consists of 62 Strategic Operating Unit (SOU) all over Malaysia and Indonesia. The plantation management unit to be audited is known as SOU 15 Business Unit and consists of the following: a) Sua Betong Palm Oil Mill, b) Siliau Estate c) Sua Betong Estate d) Sengkang Estate e) Sg Bahru Estate f) Tampin Linggi Estate g) Salak Estate h) Bradwall Estate i) PD Lukut Estate SOU 15 has been audited against the Roundtable on Sustainable Palm Oil (RSPO), Principles and Criteria (P&C) – Malaysia National Interpretation (MYNI). In June 2009, the certification body, Control Union audited and issued a certificate for both SOU 13 (Labu Palm Oil Mill ) and SOU 15 ( Rantau Palm Oil Mill ) . Sime Darby Plantation Sdn Bhd eventually built another new mill at Sua Betong to replace the Rantau Palm Oil Mill and due to the realignment of the supply base, decided to have the SOU 13 and SOU 15 to be re-audited separately. SGS( Malaysia ) Sdn Bhd was eventually appointed to be the certification body for the audit. Due to the merger of Sime Darby Berhad, Golden Hope Plantations Berhad and Kumpulan Guthrie Berhad, some of the supply base has been consolidated into estate divisions. Estate Sua Betong Estate
Divisions Sg Ujong Div
Field Hectarage (Based ON Map) 950.93
South 1 Div
991.69
South 2 Div
878.45
Main Div
919.51
Rantau Div
210.55
Linggi Div
574.02
SK I Div
722.75
SK II Div
696.85
Pasir Panjang Div
635.91
Home Div
412.47
Bukit Bachang Div
254.92
Lubuk China Div
564.50
Ayer Molek Div
145.37
Tampin Linggi Estate
-
2103.44
Salak Estate
-
2944.36
Main Div
1384.34
Linsum Div
861.05
Segga Div
605.48
Silaiu Estate
Sengkang
Sg Bahru Estate
Bradwall Estate
PD Lukut Estate
-
1,386
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The estates are located in the Malaysian state of Negeri Sembilan and the northern part of Melaka . The Sua Betong Oil Mill is located at about KM22, Jalan Linggi, 71050 Sirusa , Port Dickson , Negeri Sembilan Malaysia. The validity of the certificate is for a period of 5 years, subject to annual surveillance audit. This is an audit report for th th the Re-assessment which has been conducted from 26 – 30 November 2012. 1.2
National Interpretation Used The operations of the mill and their supply bases of FFB were assessed against the Roundtable on Sustainable Palm Oil (RSPO), Principles and Criteria (P&C) – Malaysia th National Interpretation (MY-NIWG dated 26 April 2008) and RSPO Supply Chain Certification Standard dated 25 November 2011.
1.3
Certification Scope The scope of certification includes the operation of Sua Betong Palm Oil Mill and its supply base as “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: Segregation) of RSPO Supply Chain and RSPO MYNI Standard”.
1.4
Location and Maps Sua Betong Oil Mill is located along the KM22, Jalan Linggi, 71050 Sirusa, Port Dickson , Negeri Sembilan , Malaysia (Figure 1). A sample of more detailed information on the estates location and layouts are shown in Figures 3 – 7. The sampled estate shown is Sungai Baru and its divisions. The GPS location of the mill is shown in Table 1.
Table 1: Mill and Supply Base GPS Location Mill/Supply Base
Longitude
Latitude
Sua Betong Oil Mill
N 2° 31’ 42”
E 101°53’ 43”
SILIAU ESTATE 71100 SILIAU, NS
N 2° 32’ 06”
SENGKANG ESTATE
N 2° 26’ 095”
SUNGAI BARU ESTATE
N 2° 26’ 18”
TAMPIN LINGGI ESTATE
N 2° 30 ‘56.71”
SALAK ESTATE
N 2° 34’54”
BRADWALL ESTATE
N 2° 35’ 090”
SUA BETONG ESTATE
N 2° 31' 42"
E 101° 54’ 0” E 101° 57’ 72” E 102° 5’ 44”
E 101° 59’ 47.11” E 101° 53’ 38” E 101° 55’ 66" E 101° 53"43"
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N 2° 30’ 59.06”
E 101° 50’ 17.47”
Figure 1: Location Map for the various Estates and Mills within Peninsular
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Figure 2: Location Map of Estates and mill of SOU 15
Figure 3 : Ladang Sungai Baru Estate & its Divisions
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Figure 4 : Home Division
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Figure 5 : Ayer Molek Division
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Figure 6 : Bukit Bachang Division
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Figure 7 : Lubok Cina division
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Description of Supply Base and Mill Processing Capacity The FFB is sourced from 8 estates which are directly managed by Sime Darby Plantation Sdn Bhd. The crop yields from each estate are listed in Table 5 below.
Table 2 : Production Area, HCV, Certified area, FFB Yield etc
Estates (Siliau , Sengkang, Sua Betong, Sungai Baru, PD Lukut, Tampin Linggi, Salak , Bradwall )
Production Area (ha)
13,356
Immature Area ( ha )
3,081.37
Conservation Area (ha
Included under conservation area
HCV Area (ha) ( HCV 4&6)
Approx 20
Others
2,290.19
Certified Area (ha)
18,747.56
Annual FFB Production (MT) 2011/12
313,956
Table 3: Sua Betong Oil Mill Summary FY 2011/2012 ( July 2011-June 2012) Financial Year (FY11/12)
1.6
Mill Production Figures (MT) (Audited Estate) FFB Received
FFB Processed
CPO Produced
PK Produced
Certified Crop
257,762.210
256,917.606
54,939.59
12,565.69
Outside crop
0
0
0
0
Total
257,762.210
256,917.606
54,939.59
12,565.69
OER: 21.31%
KER: 4.87%
Date of Planting and Cycle The age profiles for the estates are simplified in Table 3 below. Palms are considered mature after 4 years or 48 months. Palms are normally replanted when they reach the age of 25 years.
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A replanting program for all estates involved is available and being projected for the next five (5) financial years. Sime Darby Plantation SOU 15, Sua Betong comprises of eight directly managed estates as listed in Table 1 and a 60MT/Hour mill identified as Sua Betong Palm Oil Mill. The unit only received FFB input from SOU 15. The location map of the estates is presented in Map 1. The hectarage statement for individual estates is presented in Table 4.
Table 4 : Summary of Estate crop age profile and area in SOU 15, Sua Betong Age category (year)
Sengkang
Salak
Bradwall
TampinLinggi
Sg Bahru
PD Lukut
Siliau
Sua Betong
Immature /Replant
314
376.29
1,249.82
278
569.05
131
60.00
373
>4 - 8
338.50
111.73
262.60
-
352.08
-
250.00
842
9 - 14
672.50
548.99
564.62
2,398.06
80.50
278
750.02
1205
15 – 18
1,167
1,196.67
189.49
2,0231.75
-
883
622.40
43
19 – 25
190
199.46
77.80
804.84
-
-
-
275
> 25
12
207.94
67.75
-
-
94
58.29
43
Total cultivated
2,694
2,641.08
2,412.08
1874
1,001.63
1,386
1,740.71
2,781
*Total not cultivated
156.18
303.28
166.92
229.55
111.68
111.73
101.25
266.2
Rubber
-
-
438.79
-
330.86
-
-
-
Total certified area ( ha )
2,850.18
2,944.36
3,017.79
2,103.55
1,444.17
1,497.73
1,841.96
3,047.82
Table 5: FFB Production for all Supply Base Estates for SOU 15 Estate
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
Sengkang
67,406
65,858
61,090
56,831
51,992
Salak
56,767
72,503
60,904
51,268
56,007
Bradwall
27,904.72
29,088.90
28,236.06
31,623.39
32,482.18
Sg Bahru
2,785.51
4,926.04
6,608.39
7,723.10
8,160.87
PD-Lukut
32,183
36,721
33,208
31,679
33,363
Tampin Linggi
49,233
45,200
44,934
40,458
41,451
Siliau
38,968.03
35,308.94
36,838.38
33,698.80
37,980.47
Sua Betong
52,519.65
51,247.16
51,550.45
54,558.29
52,519.65
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Other Certification Held SOU 15 does not hold any other certifications
1.8
Organizational Information and Contact Person The company contact person details are as follows:
1.9
Name:
Puan Sabarinah Marzuky
Designation:
Head, RSPO & Certifications Unit
Address:
Main Tower, Level 3A, Plantation Tower No.2, Jalan PJU 1A/7 Ara Damansara 47301 Petaling Jaya, Selangor Malaysia
Contact No.:
+603 78484388
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 7 September 2004. The membership number with RSPO is 1-0008-04-00000. Sime Darby Plantation Sdn Bhd owns and operates 62 strategic operating units covering approximately 521,924 ha in Malaysia, Indonesia and Africa. They have developed a timebound 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.
1.10 Area of Plantation The areas of supplying estates for this operating unit are listed in Table 4 & 6. Details of production area (mature/immature) are also listed.
Table 6 Area Statement of the Supplying Estates Estates Area (Ha) Name of supplying estate
Sengkang
Immature 314.00
Mature Area 2,380
Rubber -
NonCultivated 156.18
Total (Ha) 2,850.18
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376.29
2,264.79
-
303.28
2944.36
Bradwall
884.03
1,432.23
438.79
262.74
3,017.79
Sungai Bahru
569.05
432.58
330.86
111.68
1,444.17
Tampin Linggi
278.00
1,596.00
-
229.55
2,103.55
PD – Lukut
131.00
1,255.00
-
111.73
1,497.73
Sua Betong
469.00
2,315.00
-
263.82
3,047.82
Siliau
60.00
1,680.71
-
101.25
1,841.96
3,081.37
13,356
Salak
769.65
1540.23
18,747.56
1.11 Date Certificate Issued and Scope of Certificate The certificate issue date is the date of RSPO approval of this assessment report. The certification scope is “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: Segregation) of RSPO Supply Chain and RSPO MY-NI Standard
2.
ASSESSMENT PROCESS
2.1
Certification Body Founded in 1878, the SGS Group is the world’s largest auditing, inspection, testing and verification organization. Truly global and benefiting from unique international network of more than 1180 offices, 321 laboratories and 50’000 full time staff, the SGS Group is able to provide its international clientele with a comprehensive range of services in more than 145 countries. SGS has no manufacturing, trading or financial interests which could compromise its independence. Its guarantee of independence, its reputation for professionalism, integrity and impartiality, as well as it remarkable international network, place the SGS Group in a unique position. 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 th
th
The assessment was conducted on 26 Nov 2012 – 30 Nov 2012 ( 5 audit days ) and involving 8 estates, and the Sua Betong Palm Oil Mill of the SOU 15 Business Unit of 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.
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The assessment was conducted based on random samples and therefore nonconformities may exist which have not been identified. The methodology for objective evidence collection 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 5 below.
Table 7 : Assessment Programme Date th
26 2012
th
27 2012
November
November
Location
Activities
Opening Meeting
Opening Meeting at Sua Betong Palm Oil Mill, Negeri Sembilan.
Visit to Sungai Bahru Estate
Visit to TampinLinggi Estate th
28 2012
November
Visit to PD-Lukut Estate
Visit to Bradwall Estate
Visit to Estate
November
Visit to Sengkang Estate
th
November
Closing meeting at Sua Betong Palm Oil Mill
30 2012
Storage facilities, Nursery, Sg. Takau bunds and flooded area and Linesite facilities. Audit at PD-Lukut estate (Muster ground, Storage Facilities, Boundary Stones, Document Review, Biodiversity area and Manuring) Audit at Bradwall estate (Manuring operation, HCV area, Storage facilities, Linesite, Documentation Review and interview with ground workers)
Salak
th
29 2012
Supply chain audit at KKS Sua Betong (Documentation review, Mills operation, Workshop and Storage, Water collection point and Interview Session with workers) Audit at Sg. Bahru Estate (Documentation review, Linesite visit, Workshop and Storage, Riparian/Buffer zone, Field operation, Replanting, Landfill and Interview Session with workers, HA, Gender committee, local communities
Visit for facilities (Linesite and storage facilities) Documentation review Audit at Sengkang Estate (Documentation review, Linesite visit, Workshop and Storage, Riparian/Buffer zone, HCV area, Field operation, Replanting, Landfill and Interview Session with workers, HA, cattle owner, kindergarten . Documentation review Preparation for closing meeting Closing meeting and findings presentation to the management.
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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 6 below.
Table 8 : Auditor's Profile Evaluation Team
2.4
Notes
Team Leader
James S H Ong, a Bachelor of Agriculture Science holder and agronomist in SGS (M) Sdn Bhd. He has many years working experience in agriculture sector in Malaysia and has been working in estates as well in the agrochemical and fertilizer industry. He is well versed with agrochemical and fertilizer applications. Has undergone ISO 14001 and RSPO Lead Auditor training and involved in a number of audits on oil palm plantations.
Auditor 1 – Plantation
Mohd Faisal Jaafar is an auditor of Roundtable on Sustainable Palm Oil (RSPO). He also has been involved in a number of Forest Management (FM) certification. 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 – Environment and Social
Hoo Boon Han is the SGS SEAP Program Coordinator, Bio Fuels Sustainability. He has successfully completed the RSPO Lead auditor training course for both P& C as well as the Supply Chain. He has conducted both P&C audits as well as Supply Chain audits.
Trainee Auditor
Muhammad Shazaley Abdullah, a graduate in Bachelor of Forestry Science, is a Trainee Auditor for Roundtable on Sustainable Palm Oil (RSPO). He is currently undergoing training session as an auditor in future to serve the industry well.
Stakeholder Consultation and List of Stakeholders Contacted As this was a re-assessment, a public announcement was submitted to RSPO for publication 4 weeks before the audit. Similarly a wide range of stakeholders were contacted 4 weeks before the planned evaluation to inform them of the evaluation and ask for their views on relevant palm oil sustainability issues. These included environmental interest groups, local government agencies and forestry authorities, social groups and workers’ unions etc. Stakeholder consultation took place in the form of informal meetings and interviews. During the audit , meetings with workers, mandores, Hospital Assistant, Kindergarten, Creche minders , small holder and local community were conducted in respective premises within and near the estates. 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 stakeholder and the company before discussions proceeded in accordance with relevant RSPO principles, criteria and indicators. See Appendix D for stakeholder’s details and comments.
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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 mill 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. If there are non-conformities, they will be identified under ‘Major’ or ‘Minor’ during this assessment. Some areas identified with potential areas for improvement are classified under ‘Observations’ in the P& C. If the non-conformities evidence submitted for the closing of ‘Major’ or ‘Minor’ is insufficient, an Observation may be raised. As for the RSPO Supply Chain for the Mill, all non-conformities raised are considered as ‘Major’. Details for each Non-conformity and observation are given in Appendix A. Major Non-conformities have to be 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: Oil palm growers and millers provide adequate information to other stakeholders on environmental, social and legal issues relevant to RSPO Criteria, in appropriate language & forms to allow for effective participation in decision making. 1.1.1
Records of requests and responses must be maintained. Yes:
x
Major
Findings
In compliance:
No:
Objective evidence:
The estates are maintaining records on request and responses to the related stakeholders, workers and community. Based on the records, the requests are mainly on social issues. At the estate level, records are kept and documented e.g. a) Communication logbook( internal ) b) Communication logbook( external ) c) Complaint Book In addition , PD Lukut has another book , Request for Repair house and Building – Due to the frequency of request. In Sengkang Division 1, records are kept in the Miscellaneous file. In response to one of the requests on road usage made on 10/1012 by a stakeholder, it was noted that prompt action was taken by the Management on the following day. Whatever responses made were recorded in the same file. No request has been made on environment 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
Land titles / user rights (C 2.2)
Findings
In compliance:
Yes:
Objective evidence:
SOU 15 has the following publicly available management policies ( April 2011 ) that are posted on the notice boards in the estate e.g. sighted at Ladang Sg Bahru and the mill office. a) Gender policy b) Social policy
X
No:
GP 7003A
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c) Food safety policy d) Occupational health & Safety policy e) Slope and river protection policy f) Environment & Biodiversity policy g) Quality policy h) Lean six sigma policy
On the website: http://www.simedarby.com, commitment to social issues, environment and land ownership are available. Copies of the land titles are kept in the main office e.g. in Sengkang Estate office rather than in the Division office
1.2.2
Safety and health plan (C 4.7)
Findings
In compliance:
Yes:
X
No:
Objective evidence:
The auditors observed evidence of safety and health plan as follows: 1. Objective , Management program & Action Plan 2. Safety and Health plan
1.2.3
Plans and impact assessment relating to environmental and social impacts (C 5.1, 6.1, 7.1, 7.3)
Findings
In compliance:
Yes:
X
No:
Objective evidence:
Available publicly on website Plans and impact assessment relating to environmental and social impacts are documented and are publicly available on the website, http://www.simedarby.com Evidence for the identification of environmental aspects and impacts at the mill and estates level are available that is prepared by the OSH coordinator and approved by the manager. There is a provision to review these aspects and impacts annually. There is evidence of Social Management Plan that is reviewed annually. The management plan describes the plan for mitigating the impacts as identified in the SIA as well as plan to monitor the impact such as safety and health in working environment.
1.2.4
Pollution Prevention Plan (C 5.6)
Findings
In compliance:
Yes:
X
No:
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 Pollution Prevention Plan is captured in the Environmental Improvement and Pollution Prevention Plan file. It identifies the source of the pollution and means to mitigate the identified pollution activities
1.2.5
Details of complaints and Grievances (C 6.3)
Findings
In compliance:
Yes:
X
No:
Objective evidence:
Procedure is available as in Appendix 5: Sustainability Plantation Management System, Flowchart and Procedure on Handling Social Issues dated 1 November 2008. The procedures are also publicly available at the company website as follows: - http://www.simedarbyplantation.com/Negotiation_Procedures.aspx
1.2.6
Negotiation procedures (C 6.4)
GP 7003A
Findings
In compliance:
Yes:
X
Objective evidence:
Available publicly on website
Page 22 of 80
No:
Procedure is available as in Appendix 5: Sustainability Plantation Management System, Flowchart and Procedure on Handling Social Issues dated 1 November 2008. The procedures are also publicly available at the company website as follows: - http://www.simedarbyplantation.com/Negotiation_Procedures.aspx
1.2.7
Continuous improvement plan (C 8.1)
Findings
In compliance:
Yes:
X
No:
Objective evidence:
The Sime Darby website http://www.simedarbyplantation.com shows the commitment of the Group towards social, sustainability and the care for the environment. Yearly, the estates and mill will prepare their following year’s budget after identifying areas of improvement and expenditure.
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 legal requirements Yes:
X
Major
Findings
In compliance:
No:
Objective evidence:
SOU 15 is operating in compliance with Malaysian legal requirements such as Quit rent payment, Operating Permit, Fire Extinguisher, Air Compressor, Diesel Permit and License etc. The mill operating licences and permits are posted on the premise notice board The followings are some of the licences obtained: References are made to the following files: Jabatan Alam Sekitar & File Badan Kawal Selia/Air At the Sua Betong Palm Oil Mill : MPOB Licence 549681004000( 1/6/2012 - 31/5/2013) for 360,000MT FFB DOE Licence : 002084 ( 1 July 2012 – 30 Jun 2013 ) for 60 MT per hour . Mode of discharge: Alur air ( Watercourse discharge application ) a) BOD 3 days, 30°C no. 2 ( for chart ) or an opacity
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. Minor CAR 01 – Raised
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 Observation 10 Raised CAR # 02
Indicator 4.1.2
CAR Detail Date Recorded>
th
30 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
Minor CAR 02 – Closed th Date 30 Nov 12 Recorded>
Due Date>
Next surv
Date Closed>
Non-Conformance: SGS RSPO, SGS (Malaysia) Sdn. Bhd., No. 26, Jalan Anggerik Vanilla, 31/93, Kota Kemuning, 40460 Shah Alam, Malaysia CONTACT PERSON: ABDUL HAYE SEMAIL Tel: +6 (03)5121 2320 - Fax: +6 (03)5122 5927 WWW.SGS.COM
05/12/12
GP 7003A
CAR #
Indicator
Page 64 of 80
CAR Detail 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 th included in the 2012/13 agronomic & fertiliser recommendation dated 27 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. Minor CAR 03
Close-out evidence: Refer to evidence attached: i. ii.
Sg Bahru Soil Analysis Result_pg1 Sg Bahru Soil Analysis Result_pg2
Sengkang Soil Analysis being carried out. Minor CAR 03 Closed 04
4.4.7
Date Recorded>
30th Nov 12
Due Date>
Next surv
Date Closed>
Non-Conformance: No evidence of water management plans.
Objective Evidence: 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. Minor CAR 04
Close-out evidence: Sengkang Estate has submitted the record for water usage which was already seen during the audit but was filed in the wrong file. Minor CAR 04 maintained 05
4.5.4
Date Recorded>
30th Nov 12
Due Date>
Next surv
Date Closed>
17/12/12
GP 7003A
CAR #
Indicator
Page 65 of 80
CAR Detail 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 acitive ingredient usage per hectare and per tonne FFB Production is available. PD Lukut : Ref: Total Pesticide usage per MT file 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. Minor CAR 05
Close-out evidence: Refer to evidence attached: i. ii.
Sg Bahru Herbicide Usage_pg1 Sg Bahru Herbicide Usage_pg2
Minor CAR 05 – Closed M06
4.6.3
Date Recorded>
th
30 Nov 12
Due Date>
th
30 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:
GP 7003A
CAR #
Indicator
Page 66 of 80
CAR Detail 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.
Major CAR 06
Close-out evidence: 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. Sg Bahru Triple Rinsing Training_pg1 th b) Sg Bahru Triple Rinsing Training_pg2 completed in 5 Dec 2012 c) 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 Major CAR 06 – Closed Observation 11 – Raised M07
4.7.1
Date Recorded>
th
30 Nov 12
Due Date>
th
30 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:
GP 7003A
CAR #
Indicator
Page 67 of 80
CAR Detail 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 nd Manager , ( Jan 2 , 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 kit contain pills which were not suppose to be in.
Major CAR 07 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 Observation 12 – Raised
GP 7003A
CAR # 08
Indicator 5.1.2
Page 68 of 80
CAR Detail Date Recorded>
th
30 Nov 12
Due Date>
Next surv
Date Closed>
Non-Conformance: Environmental improvement plan to mitigate the negative impacts and promote the positive ones, is not developed, implemented and monitored. 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. Minor CAR 08 Close-out evidence: POM to install 2 units of water flow meter. Unbudgeted CAPEX approved and Purchase Order already generated by HQ. Awaiting item delivery. The evidence submitted is insufficient for a closure of this Car.
09
5.3.2
Minor CAR 08 - Maintained th Date 30 Nov 12 Recorded>
Due Date>
Next surv
Date Closed>
Non-Conformance: Having identified wastes and pollutants, an operational plan has not been developed and implemented, to avoid or reduce pollution. Objective Evidence:
GP 7003A
CAR #
Page 69 of 80
Indicator
CAR Detail 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.
Minor CAR 09 Close-out evidence: On 11/1/13, Sua Betong POM submitted evidence a)
The identified SW drums were collected and recorded into schedule waste record and kept in the schedule waste store.
b)
Spill kit placed in the Laboratory temporarily while the pump house construction to be completed.
c)
The soiled and oiled rags collected and stored in the scheduled waste store.
Sungai Bahru - Already disposed all the motor oil 4T/2T-Refer to evidence attached Sengkang Estate - Proper distribution for recycle bin – Evidence attached - Drain has been clean up, all rubbish bins being placed at strategic areas No submission from the other sites, so the evidences are insufficient to close this CAR. Minor CAR 09 - Maintained 10
5.5.3
Date Recorded>
th
30 Nov 12
Due Date>
Next surv
Date Closed>
17/17/12
Non-Conformance: 5.5.3 Evidence of burning waste (including domestic waste) Objective Evidence: Evidence of burning waste at the linesite. In Sengkang Estate , some burning of domestic waste was seen at line site. Minor CAR 10
GP 7003A
CAR #
Page 70 of 80
Indicator
CAR Detail 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. Minor CAR 10 – closed
M11
5.6.1
Date Recorded>
th
30 Nov 12
Due Date>
th
30 Jan 2013
Date Closed>
17/17/12
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.
Major CAR 11 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 Observation 14 – Raised
12
5.6.2
Date Recorded>
th
30 Nov 12
Due Date>
Non-Conformance: Plans are not reviewed annually. Objective Evidence:
Next surv
Date Closed>
GP 7003A
CAR #
Indicator
Page 71 of 80
CAR Detail In Sengkang estate , the pollution prevention plans were not reviewed annually as the th last plan was conducted on 19 May 2009. Minor CAR 12 Close-out evidence: In the documents , Corrective Action Plan for Nonconformities raised during ASA01, submitted, it was mentioned that ‘Pollution prevention has been reviewed in Dec 2012’ however no information on the plans were submitted for review. Minor CAR 12 – Maintained
13
5.6.3
Date Recorded>
th
30 Nov 12
Due Date>
Next surv
Date Closed>
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. Minor CAR 13 Close-out evidence: 14
6.3.2
Date Recorded>
th
30 Nov 12
Due Date>
Next Surv
Date Closed>
Non-Conformance: The system did not resolve disputes in an effective, timely and appropriate manner. 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. Minor CAR 14 Close-out evidence:
GP 7003A
CAR # 15
Page 72 of 80
Indicator
CAR Detail
8.1.6
Date Recorded>
th
30 Nov 12
Due Date>
Next surv
Date Closed>
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 staff need to be aware of the Unit’s RSPO commitments and its updated documentation . Minor CAR 15 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 Observation 13 – Raised
b) For Supply Chain
CAR # NC 01
Indicator D.6.1
CAR Detail Date Recorded>
26/11/12
Due Date>
26/02/13
Date Closed>
3/01/13
Non-Conformance: Criterion D.6.1: The facility has not provide the training for all the staff as required to implement the requirements of the Supply Chain Certification System. Objective Evidence: Non Conformance 01 CAR: No training plan or training has been provided for the Supply Chain Certification Systems. Close-out evidence:
GP 7003A
CAR #
Page 73 of 80
Indicator
CAR Detail SCCS Training was conducted by PSQM for Sua Betong Palm Oil representative on 3 January 2013.
rd
Attendance sheet was submitted. NC 01 – closed
OBSERVATIONS OBS #
Indicator
01
2.1.4
Observation Detail Date Recorded>
28/11/12
Due Date>
Next Surv
Date Closed>
Non-Conformance: A system for tracking any changes in the law
Objective Evidence: 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 is responsible for the update. All Estates and Mill: the update responsibility has been transferred to Plantation Sustainability Quality Management. Observation 01
Close-out evidence: 02
4.3.1
Date Recorded>
27&29/11/ 12
Due Date>
Next Surv
Date Closed>
5/12/12
Non-Conformance: Indicator 4.3.1 ( Minor ) : Documented evidence of practices minimizing soil erosion and degradation (including maps).
Objective Evidence: 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. Observation 02 Close-out evidence:
GP 7003A
OBS #
Indicator
Page 74 of 80
Observation Detail Topography map submitted by Ladang Sungai Baru .
Obs 03
4.4.1
Observation 02 – Closed Date 27/10/12 Recorded>
Due Date>
Next Surv
Date Closed>
Non-Conformance: Indicator 4.4.1 ( Major ) : Protection of water courses and wetlands, including maintaining and restoring appropriate riparian buffer zones at or before replanting along all natural waterways within the estate.
Objective Evidence: 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. Observation 03 Close-out evidence: Obs 04
4.4.3
Date Recorded>
26/11/12
Due Date>
Next Surv
Date Closed>
Non-Conformance: Indicator 4.4.3 ( Major ) : Outgoing water into main natural waterways should be monitored at a frequency that reflects the estates and mills current activities which may have negative impacts (Cross reference to 5.1 and 8.1).
Objective Evidence: As per the legal regulations, results of monitoring are submitted monthly to the Deparment 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. Observation 04 Obs 05
4.4.5
Date Recorded>
26/11/12
Due Date>
Next Surv
Date Closed>
Non-Conformance: Indicator 4.4.5 (Minor ) : No Monitoring of water usage in mills (tonnage water use/tonne FFB processed).
GP 7003A
OBS #
Indicator
Page 75 of 80
Observation Detail Objective Evidence: In the Sua Betong POM, no monitoring records of water usage were presented although analysis is done.
Observation 06
OBS #
Indicator
Obs 06
4.6.4
Observation Detail Date Recorded>
2728/11/12
Due Date>
Next Surv
Date Closed>
Non-Conformance: Indicator 4.6.4 ( Major ) : All information regarding the chemicals and its usage, hazards, trade and generic names must be available in language understood by workers or explained carefully to them by a plantation management official at operating unit level.
Objective Evidence: 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. Observation 06
Close-out evidence: Obs 07
4.8.1
Date Recorded>
27/11/12
Due Date>
Next Surv
Date Closed>
Non-Conformance: Indicator 4.8.1 ( Major ) : A training programme (appropriate to the scale of the organization) that includes regular assessment of training needs and documentation, including records of training for employees are kept.
Objective Evidence: 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. Observation 07
Close-out evidence: Obs 08
5.2.2
Date Recorded>
27/11/12
Non-Conformance:
Due Date>
Next Surv
Date Closed>
GP 7003A
OBS #
Indicator
Page 76 of 80
Observation Detail Indicator 5.2.2 ( Minor ) : Management plan for HCV habitats (including ERTs) and their conservation.
Objective Evidence: 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. Observation 08 Close-out evidence:
Obs 09
8.1.3
Date Recorded>
30/11/12
Due Date>
Next Surv
Date Closed>
Non-Conformance: Indicator 8.1.3 ( Minor ) : Maximizing recycling and minimizing waste or by-products generation. Objective Evidence: There were no active recycling programmes. Observation 09
Close-out evidence:
GP 7003A
Page 77 of 80
APPENDIX B: NON-CONFORMITIES PREVIOUSLY IDENTIFIED
CAR # 01
Indicator 6.1.3
CAR Detail Date Recorded>
19/05/09
Due Date>
Next surv
Date Closed>
26/11/12 ReAssessment
Non-Conformance: There was no timetable with the responsibilities for mitigation and monitoring is reviewed and updated as necessary Objective Evidence: The social impact assessment do not include clear responsibilities for mitigation and monitoring and it is not clear and when they are reviewed and updated Close-out evidence: th th During the re-assessment of SOU 1 by SGS ( Malaysia) Sdn Bhd on 26 – 30 Nov 2012, the auditors found that there is an Action Plan for Social Assessment established specifying the issues and strategies to be implemented on a yearly basis in relation to the social impact assessment. The Action Plan also specifies the responsible person to implement and the timeframe for the action plan to be conducted. The action plan is found to be reviewed on a yearly basis. CAR 01 – Closed
Observation
Obs # 01
Indicator 5.2.1
Observation Detail Date Recorded>
19/05/09
Due Date>
Next surv
Date Closed>
Non-Conformance: The Unit lack the identification and assessment of HCV habitats and protected areas within land holdings and attempt assessments of HCV habitats and protected areas surrounding landholdings
Objective Evidence: There is still a general misunderstanding of the HCV concept with some riparian zone classified HCV 4 when it is quite clearly inappropriate to do so. Whilst there are biodiversity plans for all the estates which identify HCV and give a management plan, it is an observation at this time that local knowledge is poor. Training of local managers would be of benefit and the audit team will expect to see a more pro-active participation by the estate managers at the annual surveillance. Close-out evidence:
SGS RSPO (Principles & Criteria)
Doc. Number:
GP 7003A
Doc. Version date:
01 April 2013
Page:
APPENDIX C: TIMEBOUND PLAN
SGS RSPO, SGS (Malaysia) Sdn. Bhd., No. 26, Jalan Anggerik Vanilla, 31/93, Kota Kemuning, 40460 Shah Alam, Malaysia CONTACT PERSON: ABDUL HAYE SEMAIL Tel: +6 (03)5121 2320 - Fax: +6 (03)5122 5927 WWW.SGS.COM
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GP 7003A
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GP 7003A
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APPENDIX D: LIST OF STAKEHOLDERS CONTACTED
Letters concerning the re-assessment was sent to the list of stakeholders submitted by SOU 15 and the relevant stakeholders includes statutory bodies, indigenous peoples, local communities, workers’ organizations, smallholders, local and national NGO designed to ensure that all relevant issues concerning compliance with the RSPO Criteria are identified.
th
Within the period of the public announcement on 25 Oct 2012, no complaints or comments were received by the client or by SGS (Malaysia Sdn Bhd.
List of stakeholders interviewed during the assessment
Date
Issues
Location
Stakeholders
th
Visit to Sungai Bahru Estate
Interview with a) ground workers, b) HA, c) shopkeeper, d)gender committee & union representative e) local communities, Kg Lubok Cina
th
PD-Lukut Estate
Interview internal Mandores, workers
27 November 2012
28 November 2012
Stakeholders
–
Bradwall Estate th
29 November 2012
Sengkang Estate
Interview with a) HA, Mohd Rawe b) cattle owner (smallholder within the estate), Mdm Yip Thai c) kindergarten, d) Gender Committee e) and workers harvester Mohd Yusuf and Muhd San f) Mandore Leow Siew Nyoke ( 22 years with company )
a) Sprayers Prakash, Raskumar,Bimal kumal , Dinish Das,Milan Mular – pay on time, no complaints on housing, Mandore Rajendran b) Hospital Assistant – accidents recorded c) Gender committee - No issues d) Kg Lubok Cina – no land issues with Estate. Sometimes attend meetings Issues on pay date, work hours, worker representative, complaint procedure, housing were discussed. No major issues as the workers seemed satisfied with how the management treats them.
a) Hospital Assistant: No issue. Assist in the first Aid kit stock replacement and local communities minor injuries b) Cattle owner : No land disputes , allowed to use road, cattle grazing no issue c) Kindergarten : Check on cleanliness and educational provision d) Gender committee- Attends meetings. issues recorded in complaint book e) Workers – no complaints
