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

PLANTATION MANAGEMENT UNIT

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

Public Summary Report

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

ANNUAL SURVEILLANCE ASSESSMENT (ASA-04) CUM EXTENSION OF SCOPE ON RSPO CERTIFICATION PUBLIC SUMMARY REPORT SIME DARBY PLANTATION SDN BHD RSPO Membership No: 1-0008-04-000-00

PLANTATION MANAGEMENT UNIT

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

Certificate No: Issued date: Expiry date:

RSPO 901888 19 May 2010 18 May 2015

Assessment Type Initial Certification (Main Assessment) Annual Surveillance Assessment (ASA-01) Annual Surveillance Assessment (ASA-02) Annual Surveillance Assessment (ASA-03) Annual Surveillance Assessment (ASA-04) cum Extension of Scope Re-Certification

Assessment Dates 18 – 20 Feb 2009 16 – 18 Feb 2011 03 – 06 April 2012 18 – 22 Feb 2013 11 – 14 March 2014

Intertek Certification International Sdn Bhd (formerly known as Moody International Certification (Malaysia) Sdn Bhd) 6-L12-01, Level 12, Tower 2, Menara PGRM No. 6 & 8 Jalan Pudu Ulu, Cheras, 56100 Kuala Lumpur, Malaysia. Tel: +00 (603) 9283 9881 Fax: +00 (603) 9284 8187 Email: [email protected] Website: www.intertek.com

Intertek RSPO Report: April 2014

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Public Summary Report

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

Section

Content

Page No

1.0

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

1.1

Introduction

4

1.2

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

4

1.3

Description of supply base (fruit sources)

5

1.4

Year of plantings and cycle

5

1.5

Summary of Land Use – Conservation and HCV Areas

6

1.6

Other certifications held and Use of RSPO Trademarks

6

1.7

Organizational information/contact person

6

1.8

Tonnages Verified for Certification

1.9

Time Bound Plan

8

1.10

Abbreviations Used

9

2.0

ASSESSMENT PROCESS

2.1

Assessment Methodology, Plan & Site Visits

10

2.2

Date of next scheduled visit

10

2.3

Qualifications of the Lead Assessor and Assessment Team

10

2.4

Certification Body

10-11

2.5

Process of Stakeholder consultation

11-12

3.0

ASSESSMENT FINDINGS

3.1

Summary of findings

13-43

3.2

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

43-45

3.3

Feedback Raised by Stakeholders and Findings

46-47

4.0

ASSESSMENT CONCLUSION AND RECOMMENDATION

4.1

Acknowledgement of Internal Responsibility and Confirmation of Assessment Findings

4.2

Intertek RSPO Certification Details for SOU 21 Gunung Mas grouping

7-8

47 48-49

APPENDICES Appendix A

Assessment Plan

Appendix B

Maps of location – Mill, Estates, Conservation and HCV areas

Intertek RSPO Report: April 2014

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Public Summary Report

Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope 1.0

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

1.1 Introduction This Annual Surveillance Assessment (ASA-04) cum Extension of Scope was conducted on the Plantation Management Unit (PMU) SOU 21 Gunung Mas grouping of Sime Darby Plantation Sdn Bhd (hereafter abbreviated as SDPSB), from 11 – 14 March 2014, to assess if the organization’s operations of the mill and its supply bases were in compliance against the RSPO Principles and Criteria (April 2013), Malaysian National Interpretation (November 2010) and the RSPO Supply Chain Certification Standard (November 2011) for Palm Oil Mill. This assessment also includes a review of the changes made by the PMU to comply with the requirements of the ratified new RSPO Principles and Criteria (effective 25 April 2013). It was found that the PMU is aware of the new RSPO Principles and Criteria and the transition period for compliance but has not yet make the necessary changes required. The Extension of Scope is for the purpose of adding the Yong Peng Estate as part of of this PMU. This estate was certified by BSI under the PMU SOU 19A of Sime Darby Plantation Sdn Bhd. The plantation management unit (PMU) or management unit is equivalent to a certification unit as defined in the RSPO Certification Systems Document. Each PMU consists of one mill and its supply bases which are made up of estates owned by Sime Darby Plantation Sdn Bhd (SDPSB) 1.2 Location (address, GPS and map) of palm oil mill and estates SOU 21 Gunung Mas grouping consists of one (1) palm oil mill, namely SOU 21 Gunung Mas Palm Oil Mill and four (4) estates as indicated in Table 1 below, which includes the addresses and GPS locations of the mill and estates. The location maps are provided in Appendix B. Table 1: Address of Palm Oil Mill, Estates and GPS Location Name

Address

GPS Reference Latitude

Longitude

Gunung Mas Palm Oil Mill (POM capacity: 60mt/hr)

KKS Gunung Mas, K/B No. 524, 86009 Kluang, Johor, West Malaysia.

2.344º N

103.138º E

Gunung Mas Estate (to be assessed in Recertification Assessment)

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

2.248º N

103.149º E

Kempas Klebang Estate (assessed in ASA-04)

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

2.218º N

103.172º E

Bukit Paloh Estate (to be assessed in Recertification Assessment)

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

2.140º N

103.175º E

Yong Peng Estate (assessed in ASA-04)

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

2.085º N

103.143º E

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

Intertek RSPO Report: April 2014

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Public Summary Report

Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope Details of the planted hectarage for the FFB supply for SOU 21 Gunung Mas grouping are as shown in Table 2 below.

Table 2: Estate Area Summary – 2013 / 2014 Area Summary (ha) – 2013 / 2014

Estate

Certified Area

Planted Area

Gunung Mas Palm Oil Mill Gunung Mas Estate

3,472.70

2,981.88

Kempas Klebang Estate

2,473.50

2,205.83

Bukit Paloh Estate

3,082.83

2,828.66

Yong Peng Estate

3,381.23

3,127.59

Total:

12,410.26

11,143.96

Percentage:

100%

89.80%

Notes: 1.

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

2.

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

3.

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

1.4 Summary of plantings and cycle The 4 estates been developed beginning from 1987 and the latest being from 2012 (Re-planting) and are all currently nd in the 1st and 2 cycle of planting for the Oil Palms. The age profile is as shown in Table 3. Table 3: Age Profile of Planted Oil Palm 2013 / 2014 Estate Name

Year of Planting

Cycle of Planting

2009 – 2012 1987 - 2008

2 cycle st 1 cycle

2012 1991-2005

2 cycle st 1 cycle

Bukit Paloh Estate

2009 – 2012 1987 - 2008

2 cycle st 1 cycle

Yong Peng Estate

1993-2008

Gunung Mas Estate Kempas Klebang Estate

Mature OP (ha) – Above 3 years

Immature OP (ha) – 3 years & below

nd

2,677.14

304.74

2,130.91

74.92

nd

nd

2

nd

cycle Total

2,601.13

227.53

2,823.97

303.62

10,233.15

910.81

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

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

Intertek RSPO Report: April 2014

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Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope Table 4: Conservation and HCV Areas #

Statement of Land Use (Ha)

1

Planted Area (ha) – Oil Palm • Mature • Immature

2

areas, swampy and unplantable areas

7,373.51

10,233.15

642.86

910.81

58.66

58.66

70.45

70.45

HCV Area (ha) • comprising buffer zones near forest reserves, water

catchments, burial & religious sites 1.6

2013 / 2014 (Annual Surveillance Assessment ASA-04) Hectarage – Ha

Conservation Area (ha) • comprising buffer zones along small streams, hilly

3

2012 / 2013 (Annual Surveillance Assessment ASA-03) Hectarage – Ha

Other certifications held and Use of RSPO Trademarks

There are currently no other certifications held by SDPSB -SOU 21 Gunung Mas grouping PMU. The RSPO’s trademarks and logo are not being used by the PMU audited. Instructions for use were provided and acknowledged by the PMU through a signed Memorandum of commitment agreeing to adhere to the latest “RSPO Rules on Communications & Claims”. 1.7 Organizational information / Contact Person At Head Office: Ms Sabrinah binti Marzuky Vice President II – Certification and Compliance Unit Sime Darby Plantation Sdn Bhd Wisma Guthrie, 21, Jalan Gelenggang, Bukit Damansara, 50490 Kuala Lumpur, Malaysia Tel: 03-78484000 Fax: 03-78484356 Email: [email protected] Name: Abdullah Bin Saminan Senior Manager Ladang Gunung Mas, K/B No. 512, 86009 Kluang, Johor, West Malaysia Tel: 07 9341207 Fax: 07 9342427 Email: [email protected]

Intertek RSPO Report: April 2014

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Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope 1.8 Tonnages Verified for Certification The breakdown of all the suppliers and their tonnages of FFB supplied to the POM at SOU 21 Gunung Mas grouping based on the reporting period for 2013 / 2014 (July 2013-Feb 2014, actual and Mar 2014 – June 2014, projected) are as follows: FFB Processed (MT)

#

Estate /Supplier

1.

Gunung Mas Estate

61,897.26

2.

Kempas Klebang Estate

52,217.31

3.

Bukit Paloh Estate

67,246.00

4.

Yong Peng Estate

61,853.05

Sub-total PMU own estates 5. 6. 7. 8. 9. 10.

Simpang Kiri Estate Lambak Estate Bukit Benut Estate Sg. Gemas Estate Senarut Estate Sg. Labis & Sg Labis Utara Estate

Certified By

Gunung Mas Palm Oil Mill

Intertek ( 19 May 2010)

Gunung Mas Palm Oil Mill Gunung Mas Palm Oil Mill Gunung Mas Palm Oil Mill

Previously by BSI under SOU19A – 28 October 2010

Chaah Palm Oil Mill

BSI (18 November 2011)

2,558.40

Bukit Benut Palm Oil Mill

CUC (05 October 2011)

959.58

Bukit Benut Palm Oil Mill

CUC (05 October 2011)

156.62

Kok Foh Palm Oil Mill

Intertek (7 July 2012)

102.17

Kok Foh Palm Oil Mill

Intertek( 7 July 2012)

Chaah Palm Oil Mill

BSI (18 November 2011)

Bukit Benut Palm Oil Mill Kok Foh Palm Oil Mill

CUC (05 October 2011)

Chaah Palm Oil Mill

BSI (18 November 2011)

Intertek ( 19 May 2010) Intertek ( 19 May 2010)

243,213.62 89.73

39,637.76

11. CEP Nyior Estate

29,306.96

12. Muar River Estate

359.69

13. Chaah Estate

516.32

Sub-total other certified Sime Darby estates

73,687.20

Grand total

316,900.82

Intertek RSPO Report: April 2014

Main Receiving Mill

Intertek (7 July 2012)

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Public Summary Report

Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope Total annual volumes / tonnages of FFB supplied from the supply base to SOU 21 Gunung Mas grouping POM during the previous period, current Annual Surveillance Assessment (ASA-04) cum Extension of Scope period and projected period are as follows:

Estate / Supplier

FFB Processed in 2013 / 2014 - Actual + Projected

FFB Processed in 2012 / 2013

FFB Processed for 2014 / 2015 - Projected

MT

%

MT

%

MT

%

191,346.26

66.71

*243,213.62

76.75

*267,703.77

80.26

95,507.84

33.29

73,687.20

23.25

65,834.88

19.74

0.00

0.00

0.00

0.00

0.00

0.00

Total

286,854.10

100

316,900.82

100

333,538.65

100

SCCS Model for POM

SG

SOU 21 Gunung Mas grouping Other certified Sime Darby estates Other Suppliers (OCP)

SG

SG

*Note: This figures include Yong Peng which is now under the SOU 21 Gunung Mas grouping FFB Processed in 2013 / 2014- Actual + Projected and projected figures for 2014 / 2015 The annual certifiable tonnages of CPO and PK production by SOU 21 Gunung Mas grouping from the supply base/suppliers as assessed and verified during the current Annual Surveillance Assessment (ASA-04) cum Extension of Scope (based on 2013 / 2014 data) are detailed as follows: POM Total FFB Processed (MT)

2012 / 2013

2013 / 2014 - Actual + Projected

2014 / 2015 - Projected

286,854.10

316,900.82

333,538.65

Total CPO Production (MT)

63,308.70

OER: 22.07%

71,302.68

OER: 22.50%

75,046.20

OER: 22.50%

Total PK (MT)

15,776.98

KER: 5.50%

17,429.55

KER: 5.50%

18,344.63

KER: 5.50%

Production

Note: Currently, the POM has established and maintained procedures for the book keeping and monitoring requirements for the CPO at the mill and was verified to be adopting the ‘Segregation – SG’ model in accordance with the RSPO Supply Chain Certification Standard (SCCS) requirements.

1.9

Time Bound Plan for Other Management Units

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

Intertek RSPO Report: April 2014

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Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope 1.10

Abbreviations Used

CB

Certification Body

LTA

Lost Time Accidents

CHRA

Chemical Health & Risk Assessment

Intertek

Intertek Certification International Sdn Bhd

CPO

Crude Palm Oil

MSDS

Material Safety Data Sheets

CSDS

Chemical Safety Data Sheets

MTCS

Malaysia Timber Certification Scheme

CSPO

Certified Sustainable Palm Oil

NCR

Non-Conformance Report

CSPK

Certified Sustainable Palm Kernel

NGO

Non-Government Organization

EFB

Empty Fruit Bunch

OER

Oil Extraction Rate

EHS

Environmental Health & Safety

OHS

Occupational Health & Safety

EIA

Environmental Impact Assessment

PEFC

Programme for the Endorsement of Forest Certification

ETP

Effluent Treatment Plant

PK

Palm Kernel

FFB

Fresh Fruit Bunch

PMU

Plantation Management Unit

GAP

Good Agriculture Practice

POM

Palm Oil Mill

HCV

High Conservation Values

POME

Palm Oil Mill Effluent

IPM

Integrated Pest Management

PPE

Personal Protective Equipment

ISCC

International Sustainability & Carbon Certification

SCCS

Supply Chain Certification Standard

IUCN

International Union for Conservation of Nature

SDPSB

Sime Darby Plantation Sdn Bhd

KER

Kernel Extraction Rate

SOP

Standard Operating Procedures

Intertek RSPO Report: April 2014

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Public Summary Report

Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope 2.0

ASSESSMENT PROCESS

2.1

Assessment Methodology, Plan and Site Visits

Since 29 January 2014, Intertek has initiated public communications and notifications and invited the relevant stakeholders before the assessment to provide feedback and comments on their concern (if any) on SOU 21 Gunung Mas grouping regarding the environmental, biodiversity, community development and other relevant issues. From 11 – 14 March 2014, the Assessment team of Intertek conducted the Annual Surveillance Assessment (ASA04) cum Extension of Scope in which 2 out of the 4 estates of SOU 21 Gunung Mas grouping namely Kempas Klebang estate and Yong Peng as well as the palm oil mill were assessed for compliance against the RSPO requirements. The number of estates sampled was based on a minimum sample of 0.8√y where y is the number of management sub-units and the selection was made based on their potential risks on social, environmental and biodiversity issues such as their proximity to forest reserves, hill sides, riparian zones and high conservation value areas. During the on-site assessment, relevant documents and records, including Standard Operating Procedures (SOP), management plans, hectarage development, FFB, CPO and PK production, oil palm age profile, operational controls and measures, operational data and records, training records, etc. were reviewed and verified for compliance. The Assessment team using the process approach auditing technique covered the palm oil mill and estate operations, agricultural practices, pest management, pesticide and fertilizer application, occupational health and safety, social accountability, environment and other requirements. Stakeholders’ interviews were conducted during the assessment and feedback obtained as part of information and evidence gathering. (See section 2.5 Process of stakeholder consultation). SOU 21 Gunung Mas grouping POM was also assessed against the requirements for the Segregation Module as specified in RSPO Supply Chain Certification Standard for CPO mill. This part of the assessment covered the verification of implementation of documented procedures and availability of records to demonstrate compliance against all the elements for Segregation requirements. These include documented procedure, purchasing and goods in, record keeping, sales and goods out, processing, monitoring and traceability of the CSPO and CSPK quantities, training for staff and claims. After completion of the on-site field assessment, Intertek also performed the evaluation of conformity against the RSPO Certification System requirements for CB. The assessment report, findings and associated documents were evaluated through an independent review by the Intertek Internal Evaluation Panel prior to submission of the Assessment Report to RSPO Secretariat for approval. The details of the Assessment Plan (actual on-site) are provided in Appendix A. 2.2

Date of next scheduled visit

The next scheduled visit will be the Re-Certification Assessment which will be carried out within a 9 to 12-months period after RSPO acceptance of this report and before the expiry of the certificate. 2.3

Qualifications of the Lead Assessor and Assessment Team

Details of the Lead Assessor and Assessment Team and summary of their competency and skill may be obtained from RSPO or Intertek Certification International.

Intertek RSPO Report: April 2014

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Public Summary Report

Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope Intertek Certification International Sdn Bhd [formerly known as Moody International Certification (Malaysia) Sdn Bhd] is part of the Intertek Group, which is a worldwide technical services organization dedicated to reducing clients' risks by providing technical inspection services, management system certification in quality, environmental, occupational safety & health and product certification, RSPO SCC, ISCC, Marine Sustainability Chain-of-Custody, MTCS and PEFC Chain-of Custody certification in applicable industry sectors including the agricultural and forestry sectors. Intertek operates globally providing clients with a wide-ranging technical inspection expertise and access to thousands of skilled specialists worldwide. Intertek Group’s certification business is ranked in the top 10 worldwide, and is available globally offering certification across a wide range of industries. 2.4

Process of stakeholder consultation

Stakeholder consultations began with notification of the upcoming assessment through the websites of RSPO, SDPSB and Intertek. E-mails, facsimiles and letters of the same were sent to applicable stakeholders including government agencies, NGOs and local communities. Telephone enquiries were made prior to the actual assessment and stakeholder’s response and feedback received were followed up accordingly. During the assessment, stakeholders were interviewed and their feedbacks were recorded. Among the stakeholders consulted were workers, trade union leaders, women representatives; local community leaders, representatives of government departments / agencies and NGOs; external FFB suppliers, fertilizer suppliers and contractors. Details on stakeholders’ feedback, PMU response and Intertek verification / comments are provided in section 3.3. Among the list of key stakeholders consulted was the following: Government Agencies (by emails) 1. Department of Lands And Mines (Kuala Lumpur) 2. Department of Environment (Kuala Lumpur) 3. Department of Forestry Peninsular Malaysia (Kuala Lumpur) 4. Department of Immigration (Kuala Lumpur) 5. Department of Irrigation & Drainage (Kuala Lumpur) 6. Department of Labour (Kuala Lumpur) 7. Department of Occupational Safety & Health (Kuala Lumpur) 8. Department of Orang Asli Affairs (Kuala Lumpur) 9. Department of Wildlife & National Parks Statutory Bodies (by emails) 20. Malaysian Palm Oil Board (MPOB) 21. Malaysian Palm Oil Board (MPOB) - Northern Region 22. Malaysian Palm Oil Board (MPOB) - Central Region 23. Malaysian Palm Oil Board (MPOB) - Southern Region 24. Malaysian Palm Oil Board (MPOB) - Eastern Region NGOs (by emails) 30. All Women’s Action Society (AWAM) 31. BCSDM - Business Council for Sustainable Development in Malaysia 32. Borneo Child Aid Society (Humana) 33. Borneo Resources Institute Malaysia (BRIMAS) 34. Borneo Rhino Alliance (BORA) 35. Center for Orang Asli Concerns COAC

Intertek RSPO Report: April 2014

10. Department of Environment (Johor) 11. Department of Forestry (Johor) 12. Department of Immigration (Johor) 13. Department of Irrigation & Drainage (Johor) 14. Department of Labour (Johor) 15. Department of Occupational Safety & Health (Johor) 16. Department of Wildlife & National Parks (Johor) 17. Land and Mines Office (Johor) 18. Pertubuhan Keselamatan Sosial (SOCSO) (Johor) 19. Pejabat Buruh (Johor) 25. Malaysian Palm Oil Board (MPOB) - Sarawak Region 26. Malaysian Palm Oil Board (MPOB) - Sabah Region 27. Malaysia Palm Oil Association (MPOA) 28. Malaysia Palm Oil Association Kuala Lumpur (MPOA) 29. Malaysia Palm Oil Association Sabah (MPOA)

60. Malaysian Nature Society Miri 61. Malaysian Nature Society Pahang 62. 63. 64. 65.

Malaysian Nature Society Perak Malaysian Nature Society Pulau Pinang Malaysian Nature Society Sabah Malaysian Nature Society Terengganu

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Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope 36. Centre for Environment, Technology and Development, Malaysia - CETDEM 37. Consumers Association Of Penang - CAP 38. EcoKnights 39. Environmental Management and Research Association of Malaysia (ENSEARCH) 40. Environmental Protection Society Malaysia (EPSM) 41. Friends of the Earth, Malaysia 42. Future in Our Hands Society, Malaysia 43. Global Environment Centre 44. HUTAN - Kinabatangan Orang-utan Conservation Programme 45. Institute of Foresters, Malaysia (IRIM) 46. JUST - International Movement for a Just World 47. Malaysian Environmental NGOs - MENGO 48. Malaysian National Animal Welfare Foundation MNAWF 49. Malaysian Nature Society (MNS) Kuala Lumpur 50. 51. 52. 53. 54.

Malaysian Nature Society Johor Malaysian Nature Society Kedah Malaysian Nature Society Kelantan Malaysian Nature Society Kuching Malaysian Nature Society Melaka/Negeri Sembilan 55. National Union of Plantation Workers (NUPW) 56. Partners of Community Organisations (PACOS) 57. Penang Institute previously known as SocioEconomic & Environmental Research Institute (SERI) 58. Proforest - South East Asia Regional Office 59. R.E.A.C.H. - Regional Environmental Awareness Cameron Highlands Local community (On-site interviews) Gender representatives Workers representatives

Intertek RSPO Report: April 2014

66. Malaysian Plant Protection Society (MAPPS) 67. Mountaineering and Outdoor Pursuits Association of Negeri Sembilan 68. National Council of Welfare & Social Development Malaysia - NCWSDM 69. Sabah Wetlands Conservation Society (SWCS) 70. SEPA - Sabah Environmental Protection Association 71. SUARAM - Suara Rakyat Malaysia 72. SUHAKAM - National Human Rights Society Persatuan Kebangsaan Hak Asasi Manusia 73. Sustainable Development Network Malaysia (SUSDEN) 74. Tenaganita Sdn Bhd 75. The Malaysian Forum of Environmental Journalist (MFEJ) 76. TRAFFIC Southeast Asia - Wildlife trade & trafficking monitoring programme 77. Transparency International - Malaysian Chapter 78. Treat Every Environment Special Sdn Bhd. (TrEES) 79. United Nations Development Programme - UNDP Malaysia 80. Water Watch Penang (WWP) 81. Wetlands International (Malaysia) 82. Wild Asia Sdn Bhd 83. World Wide Fund for Nature (WWF) Malaysia 84. World Wide Fund of Nature (WWF) Sabah 85. UNION – AMESU 86. Malaysian CropLife & Public Health Association (MCPA) 87. Pesticide Action Network Asia and the Pacific (PAN AP) 88. ENO Asia Environment

Suppliers / Contractors Village Heads

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Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope 3.0

ASSESSMENT FINDINGS

3.1

Summary of findings

The assessment confirmed that SOU 21 Gunung Mas grouping demonstrated compliance against the RSPO Principles and Criteria (April 2013), Malaysian National Interpretation (MY- NI, November 2010) and RSPO Supply Chain Certification Standard (November 2011) for POM. 3.1.1 Supply Chain Certification Standards Findings - on CPO Mill The Supply Chain model applied at SOU 21 Gunung Mas grouping POM during this assessment is Segregation. 3.1.2 Status on Supply Chain on POM: Based on the documents and records presented during the on-site verifications made, it is concluded that the SOU 21 Gunung Mas grouping POM has been able to comply with the requirements of the RSPO SCCS under the ‘SG’ model and is thus eligible for ‘SG’ trading for its palm products for year 2013/2014. 3.2 Status of Identified Noncompliance and Corrective Actions, Observations and Identified Positive Elements All previous non-conformances and observation have been closed off. During this assessment, there was 1 Major NCR and 2 Observations. The root cause and corrective action taken by the company were reviewed and these had been accordingly incorporated into the full detailed report. Identified Positive Elements 1. 2. 3. 3.3

SOU 21 Gunung Mas POM has maintained a high standard of housekeeping and cleanliness by implementing an effective 5S quality environment system. Good quality creches have been established and maintained in the SOU21 estates. Latest line-site houses provided indiacte a higher quality aesthetic finishing for benefit of workers. Feedback Raised by Stakeholders and Findings

Intertek had obtained some written and verbal feedback from the stakeholders on the environmental and social performance of SOU 21 Gunung Mas grouping operations in the course of assessment and consultations. During the Annual Surveillance Assessment (ASA-04), all pertinent feedback issues were reviewed and followed up for verification and these had been accordingly incorporated into the full detailed report.

Intertek RSPO Report: April 2014

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Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope 4.0 Assessment Conclusion and Recommendation Based on the findings above, Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping had been able to demonstrate its compliance with the RSPO Principles and Criteria (April 2013), Malaysian National Interpretation (MY-NI 2010) and the RSPO Supply Chain Certification Standard (November 2011) for Palm Oil Mill. Therefore, it is recommended that the certification of Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping be approved and continued.

Full report signed off by:

Mohan Thavarajah Lead Assessor Intertek Certification International Sdn Bhd 4.1 Acknowledgement of Internal Responsibility and Confirmation of Assessment Findings This is to acknowledge and confirm the assessment visits described in this report and the acceptance of the contents and findings in this assessment report.

Full report acknowledged and signed off by:

Abdullah Bin Saminan Senior Manager Gunung Mas grouping

Intertek RSPO Report: April 2014

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Public Summary Report

Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope 4.2 Intertek RSPO Certificate details for SOU 21 Gunung Mas grouping Certificate No:

RSPO 901888

Issue date:

19 May 2010

Expiry date:

18 May 2015

Organization

Sime Darby Plantation Sdn Bhd

Address of Head Office:

Wisma Guthrie, 21, Jalan Gelenggang, 50490, Bukit Damansara, Kuala Lumpur

RSPO Membership No:

1-0008-04-000-00

Plantation Management Unit:

SOU 21 Gunung Mas grouping

Address of POM:

KKS Gunung Mas, K/B No. 524, 86009 Kluang, Johor, West Malaysia.

Standards:

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

Certification scope:

Production of Crude Palm Oil and Palm Kernels

Supply Chain model for CPO & PK:

Segregation

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

Estate / Supplier

FFB Processed in 2013 / 2014 - Actual + Projected

FFB Processed in 2012 / 2013

FFB Processed for 2014 / 2015 - Projected

MT

%

MT

%

MT

%

191,346.26

66.71

*243,213.62

76.75

*267,703.77

80.26

95,507.84

33.29

73,687.20

23.25

65,834.88

19.74

0.00

0.00

0.00

0.00

0.00

0.00

Total

286,854.10

100

316,900.82

100

333,538.65

100

SCCS Model for POM

SG

SOU 21 Gunung Mas grouping Other certified Sime Darby estates Other Suppliers (OCP)

SG

SG

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

Intertek RSPO Report: April 2014

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Public Summary Report

Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope The annual certifiable tonnages of CPO and PK production by SOU 21 Gunung Mas grouping from the supply base/suppliers as assessed and verified during the current Annual Surveillance Assessment (ASA-04) cum Extension of Scope (based on 2013 / 2014 data) are detailed as follows: POM Total FFB Processed (MT)

2012 / 2013

2013 / 2014 - Actual + Projected

2014 / 2015 - Projected

286,854.10

316,900.82

333,538.65

Total CPO Production (MT)

63,308.70

OER: 22.07%

71,302.68

OER: 22.50%

75,046.20

OER: 22.50%

Total PK (MT)

15,776.98

KER: 5.50%

17,429.55

KER: 5.50%

18,344.63

KER: 5.50%

Production

Intertek RSPO Report: April 2014

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Public Summary Report

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

Date

Time

11/03/2014

9.00 – 1.00 pm 1.00 pm -2.00 pm 2.00 pm – 3.00 pm 3.00 pm – 6.00 pm

Day 1

6.00 – 7.00 pm 7.00 –10.00 pm

Date

Time

12/03/2014 Day 2

9.00 am – 10.00 am 10.00 am – 1.00 pm

Assessors and Assessment Activity Asssessment Team Travel to SOU 21 Gunung Mas, Johor Lunch Break Opening Meeting and Briefing at SOU 21 Gunung Mas– POM Office Review of Documentation and Follow up Issues based the Previous Assessment • Review of changes for compliance to revised P&C 2013 • Review of Time Bound Plan • Verification for compliance with rules on partial certification Break Team meeting and discussion

Mohan Thavarajah (MT)

Jumat bin Majid (JMD)

Meeting & Briefing at SOU 21 Gunung Mas (Palm Oil Mill Office) Site assessment at SOU 21 Gunung Mas Palm Oil Mill (RSPO P&C: 1~8) • Review of Time Bound Plan • Verification for Compliance with Rules on Partial Certification • P1 Transparency • P2 Laws & regulations • P3 Economic & Financial Viability • P5 Environmental, Conservation & Mill including HCV • P8 Continual Improvement • SCC for POM

1.00 pm – 2.00 pm 2.00 pm -6.00 pm 6.00 pm– 7.00 pm 7 – 10 pm

Assessors and Assessment Activity Assessment Team Chen Fai Kok (CFK)

Site assessment at Yong Peng estate (RSPO P&C: 1~8)

Site assessment at Yong Peng estate (RSPO P&C: 1~8)

• P4 Best Practices at Estates & Mill • P7 New Plantings • P8 Continual Improvement

•

•

P6 Employees, Individuals & Communities incl. Gender Issues P8 Continual Improvement

Lunch Continue site assessment at SOU 21 Gunung Mas Palm Oil Mill

Intertek RSPO Report: April 2014

Continue site assessment at Yong Peng estate

Continue site assessment at Yong Peng estate

Break Team meeting and discussion

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Public Summary Report

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

Date

Time

13/03/2014 Day 3

9.00 am – 1.00 pm

Mohan Thavarajah (MT) Site assessment at Kempas Klebang estate Smallholders (RSPO P&C: 1~8) • P1 Transparency • P2 Laws & regulations • P3 Economic & Financial Viability • P5 Environmental, Conservation & Mill including HCV • P8 Continual Improvement

1.00 pm – 2.00 pm 2.00 pm -6.00 pm

Assessors and Assessment Activity Assessment Team Chen Fai Kok (CFK) Jumat bin Majid (JMD) Site assessment at Kempas Site assessment at Kempas Klebang estate & Smallholders Klebang estate & Smallholders (RSPO P&C: 1~8) (RSPO P&C: 1~8) • P4 Best Practices at Estates & Mill • P7 New Plantings • P8 Continual Improvement

•

•

P6 Employees, Individuals & Communities incl. Gender Issues P8 Continual Improvement

Lunch Stakeholder / Consultations: • Contractors • Suppliers • Transporters • NGOs • Government Department / Agencies • Local Community # Mandatory for each category to be audited

6.00 pm– 7.00 pm 7 – 10 pm

Date

Time

14/03/2014

9.00 am – 11.00 am 11.00 am – 12.00 pm

Day 4

12.00 pm – 1.00 pm 1.00 pm – 2.00 pm 2.00 pm onwards

Intertek RSPO Report: April 2014

Break Team meeting and discussion

Assessors and Assessment Activity Assessment Team

Preparation of Closing Meeting Team Meeting and Discussions with SOU 21 Gunung Mas Management Representative Closing Meeting & Briefing at Palm Oil Mill Office Lunch Travel back to Kuala Lumpur

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Public Summary Report

Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope Appendix B-1:

Location Map of Sime Darby SOU 21 Gunung Mas grouping, Johor, Malaysia

SOU 21 Gunung Mas

Intertek RSPO Report: April 2014

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Public Summary Report

Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope Appendix B-2: Location Map of Sime Darby Gunung Mas estate, Johor, Malaysia

Intertek RSPO Report: April 2014

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Public Summary Report

Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope Appendix B-3: Location Map of Sime Darby Kempas Klebang estate, Johor, Malaysia

Intertek RSPO Report: April 2014

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Public Summary Report

Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope Appendix B-4: Location Map of Sime Darby Bukit Paloh estate, Johor, Malaysia

Intertek RSPO Report: April 2014

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Public Summary Report

Report No.: R2018/09-5 Sime Darby Plantation Sdn Bhd SOU 21 Gunung Mas grouping Annual Surveillance Assessment (ASA-04) cum Extension of Scope Appendix B-5: Location Map of Sime Darby Yong Peng estate, Johor, Malaysia

Intertek RSPO Report: April 2014

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