rspo audit report · opp 3 tungku estate lahad datu, sabah, malaysia e 117.699927 n 5.599875 3,404...
TRANSCRIPT
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RSPO Principles & Criteria Annual Surveillance Assessment Report
Report Number CU821295
RSPOPC-SUM-REPORT.F01 JULY2013 Page 1 of 38
Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia.
Tel: +603-3377 1600 / 1700
RSPO PRINCIPLES & CRITERIA PUBLIC SUMMARY REPORT
ANNUAL SURVEILLANCE ASSESSMENT 4
Malaysia
LUNGMANIS PALM OIL MILL Kuala Lumpur-Kepong Berhad
2014
Report prepared by: Mahaswaran Maliyappan (Lead Assessor)
Certification decision by: Nur Hadi (Certifier)
Certifying Office
Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa,
Off Jalan Sg Bertih, Teluk Gadong, 41100 Klang, Selangor, Malaysia [email protected]
Tel: +603-3377 1600 / 1700
Control Union Certifications Control Union Certifications is a member of the Control Union World Group - an international
inspection and certification body. CUC performs assessments and certification in many agricultural
based fields such as FSC, RSPO, and Organic production, Sustainable Textile Production, Organic
Exchange, GLOBALGAP, HACCP, BRC, GMP and GTP.
CUC is accredited by the Dutch Council of Accreditation (RVA) on the European quality standard EN 45011 for the inspection and certification of CUC Organic program (according to the EU regulation 2092/91) and GLOBALGAP program. When requested a copy of the accreditation certificate can be
obtained from CUC.
RSPO Membership Number 8-0025-06-000-00
RSPO Approval Date 12/01/2006
Affiliate Membership http://www.rspo.org/en/member/339
mailto:[email protected]://www.rspo.org/en/member/339
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Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia.
Tel: +603-3377 1600 / 1700
Table of Contents
PART 1: SCOPE OF THE CERTIFICATION ASSESSMENT AUDIT .............................................................. 4
1.1 COMPANY AND CONTACT DETAILS ...................................................................................................... 4 1.2 RSPO MEMBERSHIP & CERTIFICATION DETAILS .................................................................................... 4 1.3 ANNUAL SURVEILLANCE ASSESSMENT DETAILS ...................................................................................... 4 1.4 ASSESSMENT TYPE ............................................................................................................................ 4 1.5 LOCATION OF THE PALM OIL MILL ....................................................................................................... 4 1.6 PALM OIL MILL OUTPUT AND APPROXIMATE TONNAGES CERTIFIED ........................................................... 4 1.7 GENERAL DESCRIPTION OF SUPPLY BASE .............................................................................................. 5
1.7.1 Location of the Supply Base ............................................................................................... 5 1.7.2 Statistics of the Supply Base and Estimated Tonnes of FFB produced per year ............... 5 1.7.3 Conservation and HCV Area (Ha) ....................................................................................... 5 1.7.4 Percentage of Planted Oil Palm by different Age Ranges ................................................ 5 1.7.5 Calculation of the Number of Production Units (N) to Sample for the Mill ..................... 5
1.8 PROGRESS OF ASSOCIATED SMALLHOLDERS OR OUT-GROWERS, IF APPLICABLE TO THIS ASSESSMENT ............. 6 1.9 LOCATION MAP FOR THIS CERTIFICATION UNIT (SEE APPENDIX 1) ........................................................... 6
PART 2: PARTIAL CERTIFICATION ........................................................................................................ 6
2.1 MANAGEMENT STRUCTURE ............................................................................................................... 6 2.2 NON-COMPLIANCE IDENTIFIED WITH 2.1 ABOVE ................................................................................... 6 2.3 SUMMARY OF THE TIME BOUND PLAN ................................................... ERROR! BOOKMARK NOT DEFINED. 2.4 UN-CERTIFIED UNITS OR HOLDINGS ...................................................... ERROR! BOOKMARK NOT DEFINED. 2.5 SUMMARY OF THE FINDINGS FOR PARTIAL CERTIFICATION ..................................................................... 11 2.6 PARTIAL CERTIFICATION AUDIT AGENDA ............................................................................................ 11
PART 3: AUDIT PROCESS ................................................................................................................... 12
3.1 ABOUT THE CERTIFICATION BODY ..................................................................................................... 12 3.2 AUDIT TEAM ................................................................................................................................. 12
3.2.1 Qualifications of the Lead Auditor ......................................................................................... 12 3.2.2 Qualifications of the Assessment Team ................................................................................. 13
3.3 AUDIT METHODOLOGY.................................................................................................................... 15 3.3.1 General Overview ............................................................................................................ 15 3.3.2 Assessment agenda for this Audit ....................................... Error! Bookmark not defined.
PART 4 ASSESSMENT FINDINGS ........................................................................................................ 18
4.1 LEAD ASSESSOR’S SUMMARY AND RECOMMENDATION FOR CERTIFICATION ............................................. 18 4.2 SUMMARY OF THE FINDINGS BY PRINCIPLES AND CRITERIA .................................................................... 19
Principle 1: Commitment to Transparency ..................................................................................... 19 Principle 2: Compliance with Applicable Laws and Regulations .................................................... 19 Principle 3: Commitment to Long-Term Economic and Financial Viability ..................................... 20 Principle 4: Use of Appropriate Best Practices by Growers and Millers ......................................... 21 Principle 5: Environmental Responsibility and Conservation of Natural Resources and Biodiversity ........................................................................................................................................................ 25 Principle 6: Responsible Consideration of Employees and of Individuals and Communities by Growers and Millers ........................................................................................................................ 27 Principle 7: Responsible Development of New Plantings ................................................................ 30 Principle 8: Commitment to Continuous Improvement in Key Areas of Activity ............................. 30
4.3 SAMPLE CRITERIA APPLIED DURING ANNUAL SURVEILLANCES ONLY & NOT APPLICABLE FOR THE MAIN ASSESSMENT ............................................................................................... ERROR! BOOKMARK NOT DEFINED. 4.4 NON-CONFORMITY RAISED DURING THIS AUDIT AND ANY FROM THE PREVIOUS YEAR, IF APPLICABLE ......... 31
4.4.1 Non-Conformities Identified during this Audit ...................................................................... 31 Non-were raised during this audit. or................................................. Error! Bookmark not defined. 4.4.2 Non-Conformity Identified during the last ASA, not applicable for MA .. Error! Bookmark not defined.
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Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia.
Tel: +603-3377 1600 / 1700
Non-were raised during the last audit as this is the Main Assessment. or ...... Error! Bookmark not defined.
THE FOLLOWING NC’S WERE RAISED DURING THE LAST AUDIT AND THE STATUS WAS REVIEWED AS INDICATED BELOW. ................................................................................................................. ERROR! BOOKMARK NOT DEFINED.
4.4.2 Observations Raised During this Audit ...................................... Error! Bookmark not defined. 4.5 ISSUES THAT WERE RAISED DURING THE STAKEHOLDER CONSULTATION, IF ANY ......................................... 33
PART 5: RSPO SUPPLY CHAIN CERTIFICATION ................................................................................... 33
5.1 POM INCLUDED IN THE SCOPE OF THE AUDIT ..................................................................................... 33 5.2 CONFIRMATION OF THE COMPANY’S SUMMARY OF ANNUAL CERTIFIED VOLUME OF RSPO CERTIFIED PALM OIL AND PALM KERNEL OVER A SPECIFIED PERIOD ...................................................................................... 33 5.3 SUMMARY REPORT INCLUDING A BRIEF DESCRIPTION OF THE SCOPE OF CERTIFICATION ............................. 33 5.4 MONTHLY RECORDS OF CERTIFIED AND UNCERTIFIED FFB RECEIVED SINCE THE LAST AUDIT ........................ 34 5.5 MONTHLY RECORDS OF CERTIFIED CPO AND PK PRODUCED SINCE THE LAST AUDIT ................................... 34 5.6 RECORDS OF CERTIFIED CPO & PK SOLD UNDER GREENPLAM TO BUYERS SINCE THE LAST AUDIT, IF ANY ...... 35 5.7 RECORDS OF CERTIFIED CPO & PK SOLD UNDER UTZ ETRACE TO BUYERS SINCE THE LAST AUDIT, IF ANY ...... 35 5.8 NON-CONFORMITIES IDENTIFIED DURING THIS AUDIT ............................................................................ 35 5.9 DESCRIPTION OF THE ORGANIZATIONAL MANAGEMENT SYSTEMS ............................................................ 35 5.10 FINAL CERTIFICATION DECISION BY CONTROL UNION FOR THE RSPO SCCS AUDIT OF THE POM .............. 35
PART 6: CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY ........... 36
6.1 DATE OF NEXT ASA ........................................................................................................................ 36 6.2 DATE FOR CLOSURE OF NON-CONFORMITIES ...................................................................................... 36 6.3 SIGNING BY THE CLIENT ................................................................................................................... 33 6.4 SIGNING BY THE LEAD AUDITOR ........................................................................................................ 36 6.5 SIGNING BY THE CERTIFIER ............................................................................................................... 36
PART 7: APPENDICIES ........................................................................................................................ 35
APPENDIX 1: LOCATION MAP FOR THIS CERTIFICATION UNIT .......................................................................... 35 FOR MALAYSIA ONLY. APPENDIX 2: LIST OF ABBREVIATIONS ........................................................................................................... 36
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Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia.
Tel: +603-3377 1600 / 1700
PART 1: SCOPE OF THE CERTIFICATION ASSESSMENT AUDIT
1.1 Company and Contact Details
Company Name: Kuala Lumpur Kepong Sabah, Sdn. Bhd
Business Address: KLK (Sabah), Lahad Datu Region, P.O.BOX 60999, 91118 Lahad Datu, Sabah.
Contact Person: Mr. Sin Chuan Eng
Office Telephone: +6089-887240
E-Mail: [email protected]
Web Site: www.klk.com.my
Other Certifications Held: ISCC
1.2 RSPO Membership & Certification Details
RSPO Membership Number: 1-0014-04-000-00
Registered Client Name: Kuala Lumpur Kepong Berhad
Certificate Number: CU-RSPO-821295
Start Date Of Certificate: 6 July 2010
End Date Of Certificate: 5 July 2015
Date Of Original Certification: 6 July 2010
Scope: Certification of the Palm Oil Mill and Supply Bases
Type Of Certification: Single site
Duration Of Certificate: 5 Years from date of certification
1.3 Annual Surveillance Assessment Details
Dates Of This Audit: 5-9 May, 2014
Audit Number: ASA 4
1.4 Assessment Type
This is a RSPO Principles &Criteria Compliance assessment of the palm oil mill and its respective supply bases as listed in this report below.
1.5 Location of the Palm Oil Mill
Name Palm Oil Mill
Mill Capacity
Location GPS Reference
(POM) MT/Hour Address Longitude Latitude
Lungmanis POM 45 KM 29, Jalan Lahad Datu Tungku, Lahad Datu, Sabah
E 118°.58’82 N 5°.0839
1.6 Palm Oil Mill Output and Approximate Tonnages Certified
Figures below are from:
Only from certified supply bases (Y/N). YES
Combining certified with uncertified supply bases (Y/N). NO
If the Mill is receiving FFB from uncertified supply bases outside the audit scope, such uncertified sources is highlighted under the following sections as seen applicable:
a. PART 1, Section 1.7 – General Description of Supply Base, b. PART 2: Partial Certification, Section 2.4 – Uncertified Units or Holdings, c. PART 5: RSPO Supply Chain Certification of this report
Projected Production from the last 12 Months (MT)
Actual Production for this Audit Year 2013 (MT)
Projected 12 Months (MT) Forecast Certified in this Report
FFB CPO PK FFB CPO PK FFB CPO PK
213 330 31 661 12 373 161 491 35 159 8 853 213 706 48 084 12 395
mailto:[email protected]://www.klk.com.my/
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RSPO Principles & Criteria Annual Surveillance Assessment Report
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Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia.
Tel: +603-3377 1600 / 1700
1.7 General Description of Supply Base
Lungmanis mill receives it supply of FFB from its own estates which is Lungmanis, Bukit Tabin and Tungku estates. No changes introduced in the supply base since from previous assessment and this audit has carried out to ensure full compliance with RSPO requirement.
1.7.1 Location of the Supply Base
OPP
Oil Palm Plantation
Location GPS reference Area Summary (Ha)
Name Address Longitude Latitude Total Mature
OPP 1 Lungmanis Estate
Lahad Datu, Sabah, Malaysia
E 118.602767 N 5.073939 1,613 1,613
OPP 2 Bukit Tabin Estate
Lahad Datu, Sabah, Malaysia
E 118.614312 N 5.058862 2,864 2,864
OPP 3 Tungku Estate Lahad Datu, Sabah, Malaysia
E 117.699927 N 5.599875 3,404 3,404
TOTAL 7,881 7,881
1.7.2 Statistics of the Supply Base and Estimated Tonnes of FFB produced per year
OPP Oil Palm Plantation Estimated FFB/Year (MT)
Oct’13 to Sep’14 Planting Years Cycle (Years)
OPP 1 Lungmanis Estate 46,795 95 - 97 25 to 30
OPP 2 Bukit Tabin Estate 77,395 94 - 97 25 to 30
OPP 3 Tungku Estate 89,516 92 - 94 25 to 30
TOTAL 213’886
1.7.3 Conservation and HCV Area (Ha)
OPP Oil Palm Plantation Conservation Area (Ha) HCV Area (Ha) * HCV part of Conservation
OPP 1 Lungmanis Estate - - -
OPP 2 Bukit Tabin Estate - - -
OPP 3 Tungku Estate - - -
TOTAL - - -
* Indicate if HCV area is part of the Conservation Area. If the HCV area is part of the Conservation Area, then “YES” otherwise, “No”
1.7.4 Percentage of Planted Oil Palm by different Age Ranges
OPP Planting Years by 5 year Ranges
1986-1990 1991 -1995 1996 – 2000 2001 – 2005 After 2005
OPP 1 - 63.92 % 36.08 % - -
OPP 2 - 68.96 % 31.04 % - -
OPP 3 - 100.00 % - - -
1.7.5 Calculation of the Number of Production Units (N) to Sample for the Mill
N = 0.8√Y, where “Y” is the number of units, with the result always to be rounded “up” to the next whole integer. Where only a sample of the supply base is assessed, units not previously assessed, or assessed earlier in the certification program, are to be preferred over those more recently assessed
For the Mill, how many units make up the production base?
Owned estates (Y) N = 0.8√Y Smallholders (Z) N = 0.8√Z
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Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia.
Tel: +603-3377 1600 / 1700
3 2 0 0
Explanation as to the selection of estates sampled
Bukit Tabin Estate & Tungku Estate was assessed. [ Two of the three estates ]
1.8 Progress of associated Smallholders or Out-growers, if applicable to this assessment
Progress of associated Smallholders or Out-growers towards Compliance with relevant Standards - should be in accordance to the 3 year implementation plan, if applicable to this assessment
Not Applicable
1.9 Location Map for this Certification Unit (See Appendix 1)
PART 2: PARTIAL CERTIFICATION
The rules for partial certification allow organizations that have a majority holding in and / or management control of more than one autonomous company growing oil palm to certify individual management units and / or subsidiary companies subject to certain rules.
2.1 Management Structure
Section Criteria Yes/No If “Yes” If “No”
2.1.1 Is the certified operation (POM and supply base as detailed above) a stand-alone operation and there are no other plantations or mills owned by the same company?
No Section 2 is N/A
Go to 2.1.2
2.1.2 Is the certified operation part of a simple structure of operations owned by one company?
Yes Go to 2.1.5 Go to 2.1.3
2.1.3 Are there statements of the ultimate controlling shareholders and directors in the managing agency company/companies:
a. Explaining the legal relationship and the management arrangements with the subsidiary companies and / or with any operating groups?
- Go to 2.1.4
Go to 2.2.1
2.1.4 b. A statement of commitment to complying with the spirit of the RSPO for all companies and subsidiaries involved with the growing of oil palm and for the production of palm oil?
- Go to 2.4 Go to 2.2.2
2.1.5 Is there a time bound plan in place for all subsidiaries, estates and palm oil mills?
Yes Go to 2.3 2.2.3
2.1.6 Is the parent company or one of its majority owned and / or managed subsidiaries a member of RSPO.
Yes
2.2 Non-compliance Identified with 2.1 Above
Section Non-compliance findings NC raised Category
2.2.1 There is no explanation as to the company’s structure and therefore it Is not possible to conduct an effective audit against the rules for partial certification.
- Major
2.2.2 There is no statement of commitment to complying with the spirit of the RSPO for all companies within the company structure.
- Major
2.2.3 There is no time bound plan in place for the certification for all subsidiaries, estates and mills.
- Major
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Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia.
Tel: +603-3377 1600 / 1700
2.2.4 No applicable membership of the RSPO. - Major
2.3 Summary of the Time Bound Plan
Section Requirement Findings and any action required Compliance
2.3.1 Does the plan include all subsidiaries, estates and mills?
New inclusion of supply base and mill has been updated in below time bound plan.
Yes
2.3.2 Is the time bound plan challenging? Age of
plantations. Location. Mill
development. Infrastructure. Compliance
with applicable law.
Existing time bound plan has been included with new supply base and mill.
Yes
2.3.3 Have there been any changes since the last audit? Are they justified?
The time bound plan reviewed by CUC and changes such as new inclusion is updated and accepted.
Yes
2.3.4 If there have been changes, what circumstances have occurred?
New inclusion of mill and supply base. No changes on the targeted time line.
Yes
2.3.5 Have there been any stakeholder comments?
Recent stakeholder comment on acquired land in Papua New Guinea on the credibility on land obtained has been raised by OCEAN-Program Officer Collingwood Bay Community Representative, Mr. Adelbert Gangai has sent comments to KLK on a letter dated 5
th December 2013 and
kept RSPO & other parties in copy. Currently, KLK has leased a piece of a land to park all the machineries temporarily. As of 09 December 2013, this matter is being handled with RSPO and currently KLK is in progress to reply to RSPO. Wild Asia had been appointed since April 2013 to undertake SEIA assessment and subsequently 1
st meeting
at Wanigela district on 25th
Nov 2013 and community and representative attended was recorded. Pending official assessment report.
On PT Menteng Jaya Sawit Perdana IUP for 7,400Ha approval no: 525.26/153/II/EKBANG/2007 dated on 13 February 2007 and Izin Lokasi(IL) is renewed and documented no: 188.45/359/HUK-BPN/2013 dated: 1
st
August 2013 which includes an approval clause 1a that this IL will remain in force until land swap process is finalised.
Yes
2.3.6 Have there been any newly acquired subsidiaries?
No new acquisition other than Papua New Guinea. Yes
2.3.7 Have there been No lapses. Yes
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Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia.
Tel: +603-3377 1600 / 1700
any isolated lapses in the implementation of the plan?
2.3.8 Has there been any systematic failure to proceed with the implementation of the plan?
No. Yes
2.3.9 General statement as to progress made since the last audit?
The target to certify all the units within year 2015 remain same. Yes
2.4 Un-Certified Units or Holdings
NOTE: Companies may demonstrate compliance by clear evidence of a self-audit (i.e. an internal audit for all subsidiaries, estates and Palm Oil Mills)
Section Requirement Findings and any action required Compliance
2.4.1 Did the company conduct an internal audit? If so, has a positive assurance statement been produced?
The internal control points have included all the requirements to validate the compliance against uncertified units or holdings as per partial requirements and assurance statement has been generated by KLK has a list of subsidiaries inspected and dated 30
th Nov 2013.
Yes
2.4.2 No replacement after dates defined in NIs Criterion 7.3 of:
Primary forest.
Any area identified as containing High Conservation Values (HCVs).
Any area required to maintain or enhance HCVs in accordance with RSPO criterion 7.3.
The company has conducted HCV assessment by Jump Consulting in January – February 2012 for all subsidiaries where the assessment report confirms that there was no replacement of primary forest or containing HCV. The new mills and newly acquired land are still under consultant preliminary report.
Yes
2.4.3 Any new plantings since January 1
st
2010 must comply with the RSPO New Plantings Procedure.
PT Anugerah Surya Mandiri has undergone NPP and published in RSPO website on 1
st April 2013.
Yes
2.4.4 Any Land conflicts are being resolved through a mutually agreed process, e.g. RSPO Grievance
For PT Karya Makmur Abadi, a total land of 4,745.13Ha has been compensated. PT Adei Plantation land conflicts around 2,544Ha are still in progress of negotiation.
Yes
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Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia.
Tel: +603-3377 1600 / 1700
procedure or Dispute Settlement Facility, in accordance with RSPO criteria 6.4, 7.5 and 7.6.
2.4.5 Any Labor disputes are being resolved through a mutually agreed process, in accordance with RSPO criterion 6.3.
None noted. No stakeholder comments or complaints received Yes
2.4.6 Any Legal non-compliance is being resolved in accordance with the legal requirements, with reference to RSPO criteria 2.1 and 2.2.
None noted. No stakeholder comments or complaints received. Yes
TIME BOUNDP PLAN FORECAST FOR RSPO CERTIFICATION OF ALL PALM OIL MILLS & SUPPLY BASES
Palm Oil Mill Country Supply Bases (estates,
plantations, associations) Targeted RSPO
Certification Year Current Certification
Status as per this Audit
Batu Lintang Serdang, Kedah, Malaysia
Pelam Estate Batu Lintang Estate Subur Estate Buntar Estate
2013 Certified
Kekayaan Paloh, Johor, Malaysia
Landak Estate Kekayaan Estate Voules Estate Sg Penggeli Estate New Pogoh Estate Fraser Estate Paloh Estate Sg Bekok Estate Ban Heng Estate See Sun Estate
Oct 2011 Certified
Paloh Paloh, Johor, Malaysia
Supply base consisting of smallholders
2015 Pending
Jeram Padang Bahau, Negeri Sembilan, Malaysia
Ayer Hitam Estate Batang Jelai Estate Jeram Padang Estate Kombok Estate Ulu Pedas Estate Sg Pertanian Estate Sg Kawang Estate Renjok Estate Tuan Estate
Sept 2012 Certified
Tanjung Malim Tanjung Malim, Perak, Malaysia
Changkat Asa Estate Kerling Estate Sg Gapi Estate
2013 Certified
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Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia.
Tel: +603-3377 1600 / 1700
Tuan Mee Sungai Buloh, Selangor, Malaysia
Tuan Mee Estate 2013 Certified
Kuala Pertang Kuala Krai, Kelantan, Malaysia
Kerilla Estate Pasir Gajah Estate Sg Sokor Estate
By 2013 Pending
Mill 1 Tawau, Sabah, Malaysia
100% independent smallholders, not to be included in the scope of the certification
N/A N/A
Mill 2 Tawau, Sabah, Malaysia
Pang Burong Estate Sri Kunak Estate Tundong Estate Ringlet Estate
March 2009 Certified
Pinang Tawau, Sabah, Malaysia
Jatika Estate Sigalong Estate Pangeran Estate Pinang Estate
March 2009 Certified
Lungmanis Lahad Datu, Sabah, Malaysia
Tungku Estate Bukit Tabin Estate Lungmanis Estate
July 2010 Certified
Rimmer Lahad Datu, Sabah, Malaysia
Rimmer Estate Sg. Sibalukan
July 2010 Certified
Bornion Kinabatangan, Sabah, Malaysia
Bornion Estate Segar Usaha Estate
July 2010 Certified
Changkat Chermin
Manjung. Perak, Malaysia
Lekir Estate Changkat Chermin Estate Raja Hitam Estate Glenealy Estate Serapoh Estate Kuala Kangsar Estate Allagar Estate
2013 Certified
Berau 1 Berau, Kaltim, Indonesia
Kebun Malindomas Perkebunan, Kebun Hutan Hijau Mas, Kebun Jabontara Ekakarsa
By 2014 Pending
Steelindo Wahana Perkasa
Belitung, Indonesia
Kebun Steelindo Wahana Perkasa
By 2013 Audited on 30/9-04/10/2013. Pending.
Parit Sembada Belitung, Indonesia
Kebun Parit Sembada Kebun Alam Karya Sejahtera
By 2014 Pending
Mandau Riau, Sumatera, Indonesia
Kebun Mandau Oct 2012 Certified
Nilo 1 Riau, Sumatera, Indonesia
Kebun Nilo Timur By 2013 Approved by RSPO, pending certificate issuance.
NIlo 2 Riau, Sumatera, Indonesia
Kebun Nilo Barat By 2013 Approved by RSPO, pending certificate issuance.
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Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia.
Tel: +603-3377 1600 / 1700
Tapung Kanan Riau, Sumatera, Indonesia
Kebun Sekarbumi Alamlestari
By 2013 Certified.
Gohor Lama
Langkat, Sumatera Utara, Indonesia
Kebun Basilam Kebun Gohor Lama Kebun Tanjung Beringin (New inclusion)
By 2014 Pending
Padang Brahrang
Sumatera Utara, Indonesia
Kebun Padang Brahrang Kebun Bukit Lawang Kebun Tanjung Keliling Kebun Bekiun Kebun Maryke (New Inclusion)
By 2014 Pending
MAP March 2013
Kalimantan tengah, Indonesia
Kebun Karya Makmur Abadi Kebun MAP Kebun Menteng Jaya Sawit Perdana
By 2015 Pending
With reference to time bound plan, the following issues were reviewed openly with the Control Union audit team during the assessment and which may be in conflict with the rules for partial certification, if applicable
Name of Mill or Plantation *Area of concern (See examples below)
N/A N/A
Include any known concerns, media reports and major issues both present and from the past covering, for example:
Replacement of primary forest or any area containing HCV’s since November 2005.
Evidence of non-compliance with the law
Legal issues
Compensation payments
Social relations
Burning
Labor disputes
2.5 Summary of the findings for Partial Certification
The audit team assessed compliance with the above requirements during this audit. Failure to address any non-compliance identified may lead to certification suspension.
Overall findings are satisfactory and a minor non-compliance raised has been closed with an assurance statement. The 6 estates which have been excluded from time bound plan previously is included now with a target date. Out of the two mill in Kalimantan Timur, a new palm oil mill named Berau 2 POM is yet to commission. Stabat POM in Medan & KMA POM in Sampit has not commissioned and will be included in the time bound plan once ready. The company has also made decision to include Paloh Mill into certification by year 2015. Mill 1 which consists of 100% of independent smallholders will be shut down within 3 years from 2012. For final conclusion, please refer to table 3.1.
2.6 Partial Certification Audit Agenda
Date Location Agenda
7.5.2014 Lungmanis POM
Documentation review
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Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia.
Tel: +603-3377 1600 / 1700
PART 3: AUDIT PROCESS
3.1 About the Certification Body
Control Union Certifications is a member of the Control Union World Group – an international inspection and certification body. CUC performs Audits and certification in many agricultural based fields such as FSC, RSPO, and Organic production, Sustainable Textile Production, Organic Exchange, GLOBALGAP, HACCP, BRC, GMP and GTP. CUC is accredited by the Dutch Council of Accreditation (RVA) on the European quality standard EN 45011 for the inspection and certification of CUC Organic program (according to the EU regulation 2092/91) and EUREPGAP program. When requested a copy of the accreditation certificate can be obtained from CUC.
3.2 Audit Team
Lead auditor: Mahaswaran Maliyapan
Team member 1: Selvanathan Grapragasem
Team member 2: Muhd. Jamalul Arif
Team member 3: Asidatorn Iamsirisangthong
Team member 4: Andreas Budi Rahutomo
Team member 5: Jaruwat Boonrod
3.2.1 Qualifications of the Lead Auditor
Requirement Qualifications
A minimum of post high school (post-secondary school) training in either agriculture/forestry, environmental science or social sciences;
Post graduate qualification in agriculture with more than 5 years working experience in plantation.
At least 5 years professional experience in area of work relevant to the assessment (e.g., palm oil management; agriculture/forestry; ecology; social science);
More than 5 years working experience in plantation. Involved in RSPO auditing since November 2010. Fully trained in similar agriculture certification programs such as RSPO SCCS, Global Gap, ISCC and GMP.
Training in the practical application of the RSPO criteria, and RSPO certification systems;
Involved in RSPO assessment since November 2010. Member of CUC RSPO audit team. Involved in audits conducted in Malaysia and Indonesia.
Successfully completion of an ISO 9000:19011 lead auditors course;
Completed ISO 9001:2008 lead auditor course in July 2011. Successfully completed RSPO Lead Auditor Course
Training in the practical application of RSPO certification systems.
Post graduate qualification in agriculture with more than 5 years working experience in plantation.
A supervised period of training in practical auditing against the RSPO criteria or similar sustainability standards, with a minimum of 15 days audit experience and at least 3 audits at different organizations.
Involved in RSPO assessment since November 2010. Member of CUC RSPO audit team. Involved in audits conducted in Malaysia and Indonesia.
RSPO endorsed lead auditors course. Completed RSPO Lead Auditor training in 2011
Signed code of conduct. Signed with CUC
General knowledge of:
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Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia.
Tel: +603-3377 1600 / 1700
RSPO P&C standards. Sound knowledge of the P&Cs, Nis and Local Interpretations.
CUC organizational structure. Sound understanding and has prepared training documents for others.
CUC quality systems. Sound understanding and has prepared training documents for others.
Lead auditor role. ISO 9001. Prepared an ISO 19011 training course and conducts internal training on auditing techniques.
Report writing. Extensive experience in report writing.
Stakeholder consultation. The process and need for this is fully understood.
Certification decision process. Full understanding.
RSPO SCCS program manual. Full understanding.
CUC filing systems. Full understanding.
Correct use of RSPO trademarks. Full understanding.
History and objectives of RSPO. Full understanding.
CV available. Upon request.
Completion of CUC RSPO lead auditor training. Completed & Passed RSPO Lead Auditor training in 2011
3.2.2 Qualifications of the Assessment Team RSPO Requirement Team Member Name Qualifications
Fluent in main local languages and English.
Selvanathan Grapragasem Fluent in both English and Bahasa Malaysia
Muhd. Jamalul Arif Fluent in both English and Bahasa Malaysia
Asidatorn Iamsirisangthong Fluent in English. Has understanding of Bahasa Malaysia
Jaruwat Boonrod Fluent in English. Has understanding of Bahasa Malaysia
Andreas Budi Rahutomo Fluent in both English and Bahasa Malaysia
Field working experience in the palm oil sector, or a demonstrable equivalent.
Selvanathan Grapragasem SA 8000 advanced auditor, QMS, EMS & OHSAS Lead Auditor, Working experience in oil palm plantation.
Muhd. Jamalul Arif Involved in RSPO auditing since November 2010. Auditing experience in GMP and Globalgap.
Asidatorn Iamsirisangthong Global gap experience and agriculture background
Jaruwat Boonrod Working in Quality laboratory for produce minimal process vegetable and fresh fruit for control fruits shelf life.
Andreas Budi Rahutomo Forest Carbon Partnership Facility Project with the Ministry of Forestry Republic of Indonesia. Involved in RSPO auditing since 2014.
Good agricultural practices (GAP), integrated pest management (IPM), pesticide and fertilizer use.
Selvanathan Grapragasem SA 8000 advanced auditor, QMS, EMS & OHSAS Lead Auditor, Working experience in oil palm plantation.
Muhd. Jamalul Arif Involved in RSPO auditing since November 2010. Auditing experience in GMP and Globalgap.
Asidatorn Iamsirisangthong Global gap experience and agriculture background
Jaruwat Boonrod Performed audit observation of GMP+FSA, USDA-NOP and EU organic, Global-GAP
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Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia.
Tel: +603-3377 1600 / 1700
standard.
Andreas Budi Rahutomo Forest Carbon Partnership Facility Project with the Ministry of Forestry Republic of Indonesia. Involved in RSPO auditing since 2014.
Health and Safety auditing on the farm and in processing facilities. (For example OHSAS 18001 or occupational. Health and safety assurance system).
Selvanathan Grapragasem SA 8000 advanced auditor, QMS, EMS & OHSAS Lead Auditor, Working experience in oil palm plantation.
Muhd. Jamalul Arif Involved in RSPO auditing since November 2010. Auditing experience in GMP and Globalgap.
Asidatorn Iamsirisangthong Complete lead auditor ISO 14001
Jaruwat Boonrod Certified Lead Auditor for ISO 9001 and ISO 14001.
Andreas Budi Rahutomo Forest Carbon Partnership Facility Project with the Ministry of Forestry Republic of Indonesia. Involved in RSPO auditing since 2014.
Workers welfare issues and social auditing experience. (For example with SA8000 or related social or ethical accountability codes).
Selvanathan Grapragasem SA 8000 advanced auditor, QMS, EMS & OHSAS Lead Auditor, Working experience in oil palm plantation.
Muhd. Jamalul Arif Involved in RSPO auditing since November 2010. Auditing experience in GMP and Globalgap.
Asidatorn Iamsirisangthong Involved in group audit in organic farming since 2010. Global GAP in 2011 and RSPO in early 2012
Jaruwat Boonrod Nil
Andreas Budi Rahutomo Nil
Environmental and ecological auditing. (For example experience with organic agriculture, ISO 14001 or environmental management systems).
Selvanathan Grapragasem SA 8000 advanced auditor, QMS, EMS & OHSAS Lead Auditor, Working experience in oil palm plantation.
Muhd. Jamalul Arif Involved in RSPO auditing since November 2010. Auditing experience in GMP and Globalgap.
Asidatorn Iamsirisangthong Complete lead auditor 14001
Jaruwat Boonrod Certified Lead Auditor for ISO 9001 and ISO 14001.
Andreas Budi Rahutomo Bachelor of Forestry. Forest Carbon Partnership Facility Project with the Ministry of Forestry Republic of Indonesia. Involved in RSPO auditing since 2014.
Selvanathan SA 8000 advanced auditor, QMS, EMS & OHSAS Lead Auditor, Working experience in oil palm plantation.
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Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia.
Tel: +603-3377 1600 / 1700
3.3 Audit Methodology
3.3.1 General Overview
The Audit was carried out in conformity with the procedures as laid down in the CUC Procedure Manual and the RSPO Program Manual for the auditors and Certifier. During the Audit the qualified CUC auditors used the RSPO standard as endorsed for the country in which the audit took place and recorded their findings. Workers and local communities were interviewed and evidence sought to confirm ongoing compliance to include:
Chemical stores. Storage, MSDS leaflets, Herbicide mixing areas, PPE, Ventilation, Security.
Field inspections. Herbicide application programs. Harvesting sites and efficiency. Fertilizing operations. SOP’s. Soil maps. Land preparation. Ground cover. IPM. First aiders and boxes. Ground cover. Soil erosion. Field observations of all operations.
Worker interviews. OSH. Sexual, religious, racial harassment. Pay and contracts. Child labor. First aid. Awareness.
Re-planting sites. Zero burn.
HCV’s. Identification. Management plans. Environmental Impact Assessments. Implementation.
Riparian zones. Width. Current and future management. Non maintenance regimes.
Water management. Water courses. Water monitoring.
Road maintenance. Run off.
Social amenities. Social Impact Audits.
Local communities. Contributions made. Employment opportunities. Social impacts. Complaints procedures.
Workshops. Oil traps. Safe working environment. PPE. Diesel tanks. Environmental waste management.
Line sites. Interviews with householders. Inspection of water discharge points. Water improvement plans. Waste disposal.
Documentation review. The Palm Oil Mill audit verification included the following activities:
Mill and workshop inspections. Documentation review & worker interviews.
Mill. SOP’s. Safe working environment. Gen sets. Walk ways. Signs. EFB. POME treatment. Emissions. Mass balance. Diesel tanks. PPE. Fire extinguishers. First aiders and boxes. Fuel and water usage.
OSH. Training. Management structure. First aiders.
Full document review. Completion of the checklist. Review and documentation of evidence. All aspects of RSPO P&C’s applicable.
Worker interviews. OSH. Sexual, religious, racial harassment. Pay and contracts.
Compliance against the RSPO SCCS certification scheme. Verification: Verification of implementation was done through field observations, workshop and chemical store inspections, worker and community interviews and mill inspections as summarized above.
3.3.2 Assessment agenda for this Audit
Date Location Auditors Main activities
05/05/2014 [Mon]
Lahad Datu Regional
Office Mahas
08.30 Opening meeting Chaired by the audit team leader
Introduction by team leader
Presentation by respective managers
Presentation of Palm Oil Mill source of FFB by respective managers
Rimmer
Andreas Mill inspection
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Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia.
Tel: +603-3377 1600 / 1700
POM Mahas
Selva
Workshops
Stores
POM application
Document review Field operations
Worker interviews
Housing
Medical
Schools
Local communities
Environmental
Silabukan Estate
Jamal
Asidatorn Jaruwat
Field operations.
Worker interviews
Chemical stores
Workshops
Housing
Medical
Schools
Local communities
Environmental
06/05/2014 [Tue]
Lungmanis POM
Mahas
Andreas Mahas
Selva
Supply Chain Certification Assessment of the POM (RSPO SCCS) Mill inspection
Workshops
Stores
POM application
Document review Field operations
Worker interviews
Housing
Medical
Schools
Local communities
Environmental
Tungku Estate
Jamal
Asidatorn Jaruwat
Field operations.
Worker interviews
Chemical stores
Workshops
Housing
Medical
Schools
Local communities
Environmental
07/05/2014 [Wed]
Bornion POM
Mahas
Partial Certification Review with client representatives Mill inspection
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Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia.
Tel: +603-3377 1600 / 1700
Andreas
Mahas
Workshops
Stores
POM application
Document review Field operations
Worker interviews
Housing
Medical
Schools
Local communities
Environmental
Bornion Estate
Jamal Asidatorn
Field operations.
Worker interviews
Chemical stores
Workshops
Housing
Medical
Schools
Local communities
Environmental
Segar Usaha Estate
Selva Jaruwat
08/05/2014 [Thu]
Bukit Tabin Estate
Jamal Simon
Jaruwat Asidatorn
Field operations.
Worker interviews
Chemical stores
Workshops
Housing
Medical
Schools
Local communities
Environmental
Rimmer Estate
Mahas Selva
Andreas
09/05/2014 [Fri]
Lahad Datu Regional
Office
All auditors
Preparation for closing meeting Additional field visits and meetings with managers as necessary Closing meeting Chaired by the audit team leader
Welcome and introduction by the team leader
Presentation of findings by the audit team
Questions and answers
Final summary by team leader End of assessment
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Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia.
Tel: +603-3377 1600 / 1700
PART 4 ASSESSMENT FINDINGS
4.1 Lead Assessor’s Summary and Recommendation for Certification
The mill and supply bases visited (as per the above Tables 1.5 and 1.7.1) and were assessed at field, office, facilities, stores and a document review was carried out in accordance to the RSPO principles and criteria. The subscribed RSPO management system’s documentations seen with minor changes that due to internal external influenced factors that in relation to scope of certification. Specific evidence was recorded for estates and mill. Interviews with Estate Managers, Mill Manager, members of workers union and committee took place in both formal and informal environments and worker interviews were conducted at the supply base and the mill. The management is highly committed in maintaining the RSPO system by adopting to continuous improvement programs. There was no complaint or feedback received during the audit or during the field assessment when interviewing with the external stakeholders. Under partial certification rules, there is a time-bound plan established. For further clarification on Partial Certification, see PART 2 above. The management continually monitoring the established KPI / objectives that significantly rules the achievement of company’s corporate policy on RSPO. The mill is fully verified for RSPO SCCS system verification and it is found to be in full compliance. See PART 5 below.
It is therefore the recommendation of the lead assessor that:
A certificate of compliance is maintained. Signed:
Name: Mahaswaran Maliyappan Date: 09/05/2014
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Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia.
Tel: +603-3377 1600 / 1700
4.2 Summary of the findings by Principles and Criteria
Over the 5 year period of the life of the certificate, there will be 4 annual surveillance audits
Identified Non-Conformities and noteworthy Positive and Negative Observations.
The RSPO require that this report contain findings by each principle and some example criteria. Please see table below.
Principle 1: Commitment to Transparency
Criterion by Audit
Summary
Requests made by stakeholder were responded to and all these are well documented. Relevant documents are made publicly available. Adequate information in the requests and responses logbook and the other with regards to some confidential information being listed as publicly available.
ASA4 1.1 The mill and estates all have a Request and Responses logbook that records
all requests made and the corresponding action that was taken. Records are
maintained and it details the date of request, person who made the request
and what was the nature of the request. Record of action that has been taken
to fulfill the request and acknowledgement by the person who made the
request and an estate or mill executive is also recorded in the logbook.
Master SOP document issue no. 5 (01-02-2012), SOP no. 23 Stakeholder
Consultation clearly states what needs to be done to handle any form of
requests. All records are kept for at least 7 years.
ASA4 1.2 The following documents were made publicly available in the mill and estate offices:
Land titles / user rights
Safety and health plan
Plans and impact assessments relating to environmental and social impacts
Pollution prevention plans
Details of complaints and grievances
Negotiation procedures
Continuous improvement plan
All these documents were sighted in the mill and estate offices. All requests for documents through the estate or mill offices will have to go through the mill or estate managers. They will make the decision as to whether the information can be shared to or viewed by the person requesting the information or document. The RSPO Master List of Documents stipulates the documents that can be made publicly available and documents that should be kept confidential.
Principle 2: Compliance with Applicable Laws and Regulations
Criterion by Audit
Summary
The mill and estates have demonstrated compliance to all applicable local, national and international laws. Legal ownership of land and its land use is clearly demonstrated through the respective land titles. Boundaries have been clearly demarcated. There have been no land disputes or claims involving the mill and estates.
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Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia.
Tel: +603-3377 1600 / 1700
ASA4 2.1 The mill and estates have a register of all applicable laws and regulations and this includes among others:
OSHA and regulations 1994 (Act 514)
Factories and Machinery Act with regulations (Act 139)
Pesticides Act and Regulations (Act 149)
Poison Act and Regulations 1952 (Act 366)
Malaysia Palm Oil Board (MPOB) Regulations
Employees Provident Fund Act 1991
Employment Act 1955 All applicable permits and licenses for the mill and estates are clearly displayed in the respective offices. Records of expiry of these permits and licenses are kept in the office and monitored through Licenses Renewal Monitoring Record to ensure that they are renewed well before the expiry dates to ensure no lapses in the compliance to Malaysian government laws and regulations. The person responsible for monitoring the compliance to applicable laws and regulations are the respective estate and mill managers.
They are also responsible for the tracking of the changes in the laws and regulations. All operating units will also receive an official letter from the Personnel and Administration Department informing them regarding any changes or amendments in laws and regulations from time to time. Among the changes in the law is the implementation of the new minimum wage for plantations workers and it was determined through document review and interviews that these changes have been fully implemented in all estates and mills. An observation was issued: The specific system to track changes of the
regulation lacking, the management only list the regulations and checked
whether they are changes or not. There should be in the future a kind of
matrix to track changes if any.
ASA4 2.2 The mill and estates have demonstrated legal ownership of their land by having legal land titles to the land. All land titles demonstrate the right to use the land and clearly mentions the fact that the land is to be used for palm oil cultivation only. The land titles are kept in the estate office and were sighted during the audit. Evidence of annual payment of land tax to the state government is available in the form of receipts. The estate boundary is well demarcated with boundary stones surrounding the land. The boundary stone clearly states the GPS coordinate of that particular point. Maps clearly showing the estate boundary were also sighted in the estate office.
ASA4 2.3 There is no customary land in or surrounding all the estates. There are also no land disputes or claims involving these estates.
Principle 3: Commitment to Long-Term Economic and Financial Viability
Criterion by Audit Summary
The annual budget and 2 years projections for the mill and estate that details revenue and costs are available. Replanting programme for the estates for the next five years is also available.
ASA4 3.1 Annual financial plan 2013/2014 & Estimate POM is available.
OER Target:
2013/14 : 22.50 %
2014/15 : 22.50 %
2015/16 : 22.50 %
FFB Receiving Target:
2013/14 : 213,706 MT
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Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia.
Tel: +603-3377 1600 / 1700
2014/15 : 213,526 MT
2015/16 : 211,573 MT
Oil Production Target:
2013/14 : 48,083.85 MT
2014/15 : 48,043.35 MT
2015/16 : 47,603.93 MT
There are 2 supply bases [Tungku estate and Bukit Tabin estate]. Annual financial plan 2013/2014 & Estimate is available. In totaling of 2 estates:
Estate Bukit Tabin:
Hectarage (matured) 2864
Hectarage (immature) 0
FFB yield (mt/ha) 27.02
FFB crop (mt) 77,395
Production cost (RM/mt FFB) 215.52
Revenue (RM) 18,110,434
Replanting – NA
Estate Tungku:
Hectarage (matured) 3,404
Hectarage (immature) 0
FFB yield (mt/ha) 26.30
FFB crop (mt) 89,516
Production cost (RM/mt FFB) 212.54
Revenue (RM) 20,112,321
Replanting: 2014/2015:1992A, 83 Ha; 2016/2017:1992C, 151 Ha; 1992D, 147
Ha; 2017/2018: 1992 E, 131 Ha,1993D 111 Ha, 1993F, 96 Ha; 2018/2019:
1992B, 150 Ha, 1993C, 105 Ha, 1993E, 98 Ha, 2019/2020 : 1992 F, 102 ha,
1993A, 85 Ha, 1993B, 125 Ha
Principle 4: Use of Appropriate Best Practices by Growers and Millers
Criterion by Audit
Summary
The mills and estates have a complete set of SOPs which is being strictly adhered to and continuously monitored. Soil fertility is being maintained in the fields and erosion prevention is continuously carried out. IPM is being implemented in all the estates and the use of chemicals are in accordance with the regulations. There is a comprehensive OSH policy and is being implemented throughout the estate and mill. Improvement sighted in the identification and assessment with HIRARC. Trainings are being carried out as per the Annual Training Plan.
ASA4 4.1 The mill has all its SOPs in place and these SOP covers all mill operations from FFB reception right until mill effluent treatment. These SOPs details the procedures to run each mill operation in an efficient and safe manner. The implementation of these SOPs is done through maintenance and record keeping of forms and data for, FFB incoming records, boiler smoke density records, sterilizer temperature and time records, steam flow record, water usage records, chemical test records, process control and production report and CPO stock inventory, spare parts inventory records and so on.
The estates have the ‘Good Agricultural Practices’ which is their guide in
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Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia.
Tel: +603-3377 1600 / 1700
ensuring efficient and optimal field operations. These SOPs cover all estate operations from nursery until delivery of FFB to the mill and includes among others land clearing, land conservation, distance of planting, field maintenance, pest control, fertilizer application and harvesting. All SOPs are reviewed periodically or when there is a new technique of operation being introduced, records and data are kept for a period of seven years.
ASA4 4.2 Soil surveys and foliar sampling were carried out by Applied Agricultural
Resources (AAR) Sdn. Bhd. which is a subsidiary of Kuala Lumpur Kepong
Berhad on an annual basis. Records of these were sighted in the estate
offices. Through these surveys and analysis, the optimum fertilizer to be used
is recommended to cover the nutrient deficiencies that may exist for the
palms. Application of EFB is also recommended to reduce the usage of
inorganic fertilizers. Annual Fertilizer recommendation AA Resources: Oil
palm recommendation 2013/14, by Shea Chan Loong for recommendation of
fertilizer usage per field recommended
Checks on the records of fertilizer application indicate the fertilizer application is done based on the recommendation of AAR. Soil maps such as the general soil map, slope classes map and elevation map are also available and were sighted. These maps are used to provide general recommendations for soil and water management practices and to identify solutions to overcome soil limitations including regeneration of ground covers and soft grasses. Stacking of cut fronds by spreading in and L shape configuration or placing across the slopes in hilly terrain will minimize surface run-off. Total Nitrogen is satisfactory.
ASA4 4.3 Soil erosion is prevented through the following methods:
The planting of cover crops such as Mucuna bracteata and Pueraria javanica. The areas being planted with these cover crops are recorded in the monthly record books and marked on maps.
The presence of road maintenance programme. These road maintenance programme detail the type of road maintenance works to be carried out in each estate block and the cost involved in doing so. Budgets and actual expenditure for road maintenance works were sighted.
The application of EFB and frond stacking on slopes. This not only minimizes erosion but also enhances soil fertility.
Control of soil erosion is in accordance with the guidance stipulated in SOP 8 – Erosion Control. Soil maps and topography maps that clearly state the elevation and types of soil are also available in the estate offices.
No peat area identified in both the estates.
ASA4 4.4 The estates have maintained the riparian buffer zones along rivers in
accordance with the national and local regulations. There are 2 rivers, and 20
meters riparian zones have been established for Sungai Silabukan and Sungai
Matamba. Maps of buffer zone maintaining available including construction
of culvert on certain river area. Estate has implement policy for no spraying at
buffer zone area. There are no bunds, weirs nor dams that have been
constructed along waterways in the estates. Field visits to the estates
confirmed this fact.
SOP 6- Quality of ground and surface water dated 01-02-2012 and records on
the Effluent Running Hour and Flowmeter evident. Effluent produced from
the mill will be treated to reduce BOD and COD (tested by KDC Lab). The flow
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Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia.
Tel: +603-3377 1600 / 1700
meter log book is maintained by the Mill Laboratory. Effluent test report for
BoD, CoD and Suspended solid Water sampling points from 6 areas; Upstream
Sungai Silabukan: 1)95M, 2)96C, 3)96A, 4)96B and Downstream Sungai
Matamba: 5) 95J and Line site: 6)94A. Results from KDC laboratory for
Upstream & downstream points 1-5, report no. R14/3/228, 12/3/14 pH 6.2-
6.6, BOD 3-5, COD 20-29, SS 2-12, DO 90.7%-95.6%, Clean. Line site report no.
R14/3/229, 18-03-14, BOD 13 mg/l
.
Water sampling points from 4 areas [ water pump, bulking tank-treated
water, Line site wastewater & outlet drain] with Results from KDC laboratory
report no. R14/1/185, 29/1/14
No.1) pH 7, BOD 4, COD 49, SS 89, DO 83.2%, Clean
No. 2)E coli negative
No.3) BOD 21
No.4) BOD 18
Rainfall monitoring done on monthly basis. Documented water management
plan updated January 2014 under SOP 5. Each area of management (e.g. river
banks, domestic waste water) has specific water management plan. Verified
Department of Health visit report and has no comments were made.
Water for the mill’s operation also comes from near by river, i.e. Matamba
River. The records shows total volume of water used for FFB Process, Boiler,
Domestic (e.g. settlements), and the total usage. Records are kept from
2010/11 until 2013/14. All line site water is supplied from the Lungmanis mill.
The oil palm is basis on rainfall. Use of water from the water way, treated and
put into tank. Water test report available.
ASA4 4.5 IPM plan is documented as per the Good Agricultural Practices which includes beneficial planting and the use of biological control as opposed to chemical control of pests. Planning and realization of IPM programmes were monitored by mapping the beneficial plant to be planted with types of plant. The plans are monitored by daily completion of planting, expressed in meter of plants planted. Trainings are given to all staff on IPM.
GAP manual policy no. GAP/AGRIC/OP4: Pest & disease-Rat damage control in
oil palm dated 16-05-2005 referred. No barn owl box. This area seem not to
be suitable for owls to live naturally in this area Pesticide was recorded
included type of chemical, a.i, litre chemical, area applied by daily records.
Pest leaf eating pest Sitora, census dated 28/4/2014 found 3 out of 56 palm
representing 5% in field no. 94B verified. Rat is the critical pest. Rat bating in
field 93K/132ha, 93J/102ha, 93L/145ha. Material used Storm (a.i. 0.003%),
0.015 a.i.(g) per ha verified.
Herbicide [circle spraying] monitoring record, April 2014 in field 94a/181 ha.,
Glyphosate (a.i. 8.2) , Amine (a.i. 0.6), Ally (a.i. 0.2), with details of manday,
labour cost, hectarage treated, labour cost per ha, a.i. (lit), material cost and
total cost, with status.
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Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia.
Tel: +603-3377 1600 / 1700
ASA4 4.6 The mill and estates maintain a chemical register detailing the chemicals use, its purpose and classification as per the classification, packaging and labeling requirements as per the Register of Chemicals Hazardous to Health stipulated in the USECHH 2000 regulations (regulation 5). All pesticides used are in accordance with the Pesticides Act 1974 (Act 149) and the relevant provision (Section 53A) and in accordance with USECHH Regulations (2000). Parquet usage has been stopped since 2008. The estates still use class 2, 3 and 4 chemicals namely Monocrotophos and Warfarin for trunk injection to counter bagworm attack and to counter rat attack respectively. These chemicals will only be used in the event that the threshold of infestation in a block exceeds 5%.
These chemicals are stored separately in the chemical store. The chemical stores were found to be in good condition with the appropriate spillage traps filled with charcoal and empty bunch. First aid kits as well as shower and washing facilities are available. Annual Medical Surveillance for 2013 was done for all the sprayers, manuring gang, storekeepers and mill laboratory workers. Medical surveillance records were sighted in the mill and estate offices. There are no pregnant workers who were handling pesticides in the estates. CHRA for the mill and estates were conducted and all recommendations of the CHRA were adhered to. The quantity of active ingredient of pesticides and herbicides used are recorded and are kept for at least 5 years.
Annual agrochemicals recommendation from AAR (Applied Agricultural
Resources Sdn Bhd.) dated 2013/2014. SOP 2: Safe use of agrochemicals
dated 01-02-2012, justification of agrochemicals used and Register of
chemical hazardous to health available. Pesticides list according to WHO with
classification and other agrochemicals according to Approved list of pesticides
registered for use in this estate. Also letter from MPOA 29/1/2008 circular no.
4/2008.
ASA4 4.7 Latest HIRADC is available dated on 10.1.2014. OSH plan for year 2014
established with 2 programs. Register of 30 Chemical Hazardous for Health
available in DOSH given format. Annual machinery Inspection list attached
with quarterly OSH inspection records. Verified DOSH visit log book for 2013.
Licence renewal monitoring for machineries verified satisfactory. Contractors
were given prior safety information on site.
OSH policy has no changes since previous audit. G e Health and safety policy
dated 10.1.2005. General safety practices are satisfactory. The HIRADC
established based on process. Mitigation plans are associated in the HIRADC
and training records sighted. First aid kit check list available with monthly
monitoring records. The interval for OSH meeting is at minimum of once in 3
months. Latest meeting held on 03/04/2013. Minute’s agenda are in
accordance to DOSH requirements.
Since Jan 2013, there is neither incident nor accident recorded. The insurance
coverage is done as group coverage, based on number of employees and not
based on staff name or ID. There is “Workmen Compensation” headed letter
available indicating the entire KLK workers being insured [Bukit Tabin -
Insurance coverage for workers policy no. LWX/91076319/37/09/HHT,
coverage from 01/10/2013 to 30/09/2013, for200 workers ]
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Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia.
Tel: +603-3377 1600 / 1700
All local workers are covered with SOCSO insurance and proof of payment and claims in the event of an accident was sighted in the mill and estate office. The foreign workers are covered with Foreign Workers Compensation Scheme (FWCS) which is underwritten by AXA Insurance. The policy for the year 2013 was sighted and coverage was for all workers working in the mill and estates. An observation was issued: First aid items check list established and
monitoring, but cannot identify which box number has been monitored.
During site visit, some first aid box contains items less than the items listed on
the checklist
ASA4 4.8 2013 and 2014 training matrix are available. Training plan established based on the risk assessment conducted on 5/4/2014. Training plan for year 2013 was 100%, which mostly for OHS were completed and verified training records evidence for 2013 and 2014 which as below: • Chemical Handling • 1st Aid training • PPE usage training Verification of training records against with employee list of 2013.
Principle 5: Environmental Responsibility and Conservation of Natural Resources and Biodiversity
Criterion by Audit
Summary
Environmental Impact Assessment has been carried out by the mill and estates. A comprehensive identification of all waste has been recorded and disposal of scheduled waste has been carried out by an approved and registered collector. Monitoring and analysis of waste is carried out regularly. Landfills were filled with non-biodegradable wastes such as plastics and an observation was raised for this matter.
ASA4 5.1 The mill and estates have conducted their Environmental Impacts Assessment (EIA) for 2014. Has established SOP-10.0 dated on 01/10/2013 with rev 01. Sighted the latest EIA dated on 28/04/14, rev 01. EIA last reviewed by Mill Manager. The EIA is sighted for “Medium” rating level of risk ranging from 5 - 20. The EIA details the environmental impacts of operations and new activities as well as plans to mitigate any negative impacts should there be any. The impacts from estate operations, which covers land preparation and clearing (if any) right up till the delivery FFB to the mill is assessed through stakeholder consultation. The impacts from mill operations from reception of FFB in the mill right up till effluent treatment is also assessed in the similar way.
The assessment found separated into 2 categories. The 1st is identified as Environmental Impact Assessment & Pollution Prevention plan [Normal operation] and 2nd is on the as Environmental Impact Assessment & Pollution Prevention plan [Maintenance and Inspection].
Verified training records [based on SOP 10] that in line with training program. There are 3 Environmental Management Programes continued from last year. 1). Reduce BOD level in POME removing solids via belt press machine. 2). Reduce BOD level by having microbes through Bio wish trial. 3). Avoid accidental overflow at effluent pond.
Identification of Environmental Aspect & Impact [EIA] done on March 2013 by Mill assign staff. A common format used that inclusive of criterion such as legal, scale, severity, change, damage etc. The EIA is sighted for example the hazards description for example in relation to the pumping/recycling of effluent is clearly relates to oil, chemical or other sources of pollution. In general the format is made specific enough the details on where, what, when, how, why and who. There are 11 Environmental Management Programs
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Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia.
Tel: +603-3377 1600 / 1700
developed. Focus is more on recycling program that planned throughout 2013/14. The EIA’s give the impression that effects are addressed along with the root cause[s]. The mitigation measures well associated with training programmes and
sighted the effluent treatment plant station's activities that requires cleaning
and maintenance of belt press. Seen the Mill Assistance's visit report on the
above matter.
EIA document established, but action`s not completed. Fertilizer store impact
assessment on bunds has not yet established and fertilizers bags are stored
on ground. Verified from the EIA document, the status of constructing of
bunds shows ongoing and target in Jul 2014 for completion.
ASA4 5.2 The HCV assessment has identified 2 HCV areas, namely the riparian zone of a river and community area with some fruit trees. Site visit to estate evidenced of sign boards are in place for buffer zone and “No Hunting or fishing. A brief management plan established effectively since Nov 2012 and is in the primary stage. This plan is associated with a mile stone chart on activities how the estate can preserve the species. Signage’s are the best tool to create the awareness and serve as warning sign at all the appropriate areas within estate. Secondly patrolling at specific interval by the estate security personnel is evidenced. Management plan for HCV habitats (including ERT) and their conservation,
updated 12-04-2014. Location Tabin Wildlife reserve. There are 70 mammal
species and birds. The HCV area is at the boundary with the approximate
along Tabin wild life reserve area. No HCV inside the estate area.
ASA4 5.3 Waste and pollution mapping identifies domestic house hold wastes, agrochemical containers, used oil, battery, spoiled light, filter, clinical waste and so on. Office waste and factory waste is separated in glass, paper and plastic. Different waste bins are in place. All waste [general, laboratory and engineering] is identified, documented and waste is disposed of in the prescribed way.
Verified the Jadual 2[notification to DOE], 5[inventory of schedule waste] & 6 [consignment note] with proper records maintained. All crop residues are being recycled by estates. The estates collect all the residues for fertilizer purposes. The scheduled wastes handling and storage is handled in accordance to the Scheduled Wastes regulations 2005. There are sufficient wastes collecting bins mill wide that enable employees to dispose the waste according to the label [glass, paper, plastic].
A logbook is used to record all wastes generated. Shell and fibers are recycled in the mill. Domestic waste goes to landfill. EFB is being sent to the estates for mulching. Decanter solids and POME are also being applied in the field. The recycle programme term into 3R where used PPE, waste paper and plastics being incorporated into mitigation plan.
The "Identification of all waste products and operational plan to reduce
pollution" last reviewed on 28/04/14. Monthly domestic waste and sanitary
landfill checklist that adequately track the collection and pit details
ASA4 5.4 The mill is not connected to the Malaysian electricity system. All energy is generated by the company itself via a boiler and gensets. The company keeps track of all fossil fuel use for the gensets and its machines. The figures will be
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Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia.
Tel: +603-3377 1600 / 1700
compiled at the end of every year. Monitoring every month and the figures will be compiled at the end of every year. The renewable energy usage for the mill is in the form of fibre and shell usage. The non-renewable fuel used by both mill and estates are petrol and diesel. A complete mapping of baseline value established, where the monitoring focus on fibre [MT], FFB processed, CPO produced and the linkage to fuel consumption. Diesel usage for machineries sighted for 2014 at engine room, prime mover, water pump and others. Sighted the records of the renewable energy use per tonne of CPO in the mill.
Month KW/h generated KW/h/MT FFB
Oct'13 335050 21.35
Nov'13 371850 20.76
Dec'13 368550 20.91
Jan'14 306300 21.00
Feb'14 273250 21.83
ASA4 5.5 Kuala Lumpur Kepong Berhad has zero burning policy which explicitly prohibits open burning for land clearing or any other purpose whatsoever within plantation limits. There was no evidence that open burning takes place in the mill and estates, including in areas where replanting is taking place, and this was verified during the field visits.
ASA4 5.6 Mill emissions source is identified at each operating station and the type and quantity of pollutants generated such as fibre, shell, scrap iron, EFB, effluent, schedule waste, waste oil from diesel tank, and emission from generator set, boiler ash and dust from the soot blower are well documented. Stack emissions analysis are done twice a year as per the Environmental Quality Act 1974 requirements and records of this were sighted in the mill. The effluent (POME) quantity is monitored on a daily and monthly basis and a summary is available and was sighted.
Pollution from POME has been reduced with the commissioning of the biogas plant in the mill. Source of pollution been identified in the EIA which categorized as land, water and air with proper monitoring records available. 11 management programs established as to reduce the pollution level. Sighted monitoring records for stake emission EFB disposal and effluent discharge. Document for EIA & Pollution prevention plan, program for 2014 established
with description of major activities, Pollution/impact, frequency, impact
rating, level of risk, mitigating measures, target dates and person in charge.
Year 2014 continuous improvement plan that dated on 27/04/2014. This
master list consisting of environmental, social and safety improvements. As
for environmental, observed the solid removal machine to reduce the BOD,
construction of septic tank and schedule waste management. Constructing
playground facilities is among observed as social improvement and
monitoring of treated water on quarterly as OHS improvement activities
Principle 6: Responsible Consideration of Employees and of Individuals and Communities by Growers and Millers
Criterion by Audit
Summary
The mill and estates have conducted the social impact assessment in a participative manner. There was evidence that participatory methods were used to conduct the SIA. The relevant policies are in place and are fully implemented across the board. Communication and consultation as well complaints and grievances procedure are well communicated and adhered to. There are no evidence of workers been discriminated against in any way and
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Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia.
Tel: +603-3377 1600 / 1700
all are being paid their fair wages. The workers quarters at estate were up to living standards. The gender committee addresses issues specific to women’s needs. Workers right and welfare evidently taken care. There is transparency in contract documents and CSR is well conducted.
ASA4 6.1 The mill and estates have conducted their Social Impacts Assessment for 2013/14. The SIA details the impact of operations and new activities to the social well-being of the workers and the community and steps that need to be taken to reduce any negative impacts should there be any. The assessment was conducted through stakeholder meetings held by the mill and estates with all their stakeholders. Any negative impacts from the assessment will be mitigated within a specified time-frame. The SIA is updated on an annual basis to take into account the changes and new activities such as Newly built parking area and Pondok Makan dusty issue including the Water Catchment Pond Usage. Minimum wage impact that have taken place within that time-frame has a positive impact on the workers livelihood..
ASA4 6.2 The mill and estates have a communication and consultation procedure in place and this was sighted in their respective offices. The procedure for communication and consultation is as follows:
Receipt of communication from the stakeholder by the nominated plantation management official.
Communication will be recorded and will be attended to and resolved within 30 days.
If the matter cannot be resolved within 30 days, all the related document will be send to the company secretary for further action.
The matter will be forwarded to the Grievances Executive Committee who will decide on the action to be taken.
Action that has been decided by the Executive Committee will be carried out and outcome of the resolution will be documented and stakeholder will be informed accordingly.
Should the outcome be not resolved to the mutual satisfaction of the stakeholder and the company, it will then be dealt with under the relevant provisions of the law.
The nominated management official whom is responsible for handling matter pertaining to communication and consultation with stakeholders particularly external stakeholders are the estate and mill manager. A complete list of stakeholders covering mill and estate employees, contractors and suppliers, education and medical facilities and government agencies are available and was sighted in the mill and estate offices.
ASA4 6.3 The mill and the estates have a complaints and grievances procedure that serves as the SOP for handling of complaints and grievances from both internal and external stakeholders. This procedure has been displayed in the offices and also on notice boards around the mill and estates. A complaint and grievances logbook is kept in every mill and estate and it contains the details of the complaints made, the complainant or aggrieved party, the action taken to resolved the complaint or grievance and the date the action was taken. All complaints and grievances were promptly attended to and records of this were sighted in the mill and estate offices. Workers who were interviewed confirmed that they are aware of the complaints and grievances procedure and how to channel their grievances. Complaint and Grievances record in Stakeholder Logbook was maintained . All
complain were adhered and action was taken by responsible person and
acknowledged to the complainer back. No grievance registered as per this
audit period
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Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia.
Tel: +603-3377 1600 / 1700
ASA4 6.4 There is no customary land surrounding the estates and there are no land
disputes. No negotiations concerning compensation for loss of legal or
customary rights are as per this assessment period [ this land where the Mill
& Estate stand s belongs to KL-Kepong Sabah.
ASA4 6.5 All mill and estate workers are being paid wages in accordance with the Kadar Upah Pekerja Ladang (Wage Rates for Plantation Workers). Contract of service and salary slips for both local and foreign workers were checked and workers were paid the same amount of minimum wages which is currently RM800/month. All wage rates, benefits and working conditions are stipulated in the contract of service of the workers. There is a clause in the contract of service stating that whatever is not mentioned in the contract of service will be covered by the Sabah Labor Ordinance.
Salary slips clearly shows the calculations of gross salary, all deductions and net salary of a worker. Workers interviewed confirmed that they are being paid more than the stipulated minimum wage and that they understand all the deductions being made. During the visit to line-site, all workers were also provided with adequate housing. Each unit of quarters will be occupied by a maximum of 2 workers per room; a 3 room quarters will house a maximum of 6 workers.
All quarters are provided with electricity and treated water supply. Repairs to any damage in the quarters are done without any cost to the workers. Interview with workers have confirmed that they are indeed satisfied and comfortable with the quarters provided. Housekeeping, rubbish collector, mosque for the majority Muslim workers, kindergarten, crèche and basic maintenance. Medical facility is available.
ASA4 6.6 The mill and estates adhere to the Kuala Lumpur Kepong Berhad Policy on The Freedom of Collective Association of Employees that recognizes and allows the freedom of association and collective bargaining of its employees. This policy is displayed in the mill and estates and has been communicated to all workers and staff. Mill and estate workers are free to bargain collectively by forming groupings on their own to collectively bargain with the management of the mill or estates.
ASA4 6.7 Kuala Lumpur Kepong Berhad has a Child Employment Policy that prohibits under-aged children from working in the company. All mill and estate adhere to this policy. There are no children below ages of 16 wor