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SQAS/MSC/FOR/32-09 Issue 1 Rev. 0 CONFIDENTIAL SIRIM QAS INTERNATIONAL SDN. BHD. Building 4, SIRIM Complex, No. 1 ,Persiaran Dato’ Menteri, Section 2, P.O. Box 7035, 40911 Shah Alam, Selangor, Malaysia. File Ref. : EF00730003 RSPO SURVEILLANCE AUDIT REPORT CLIENT : FELDA AGRICULTURAL SERVICES SDN. BHD., [ BUKIT KEPAYANG PALM OIL MILL ] FELDA Palm Industries Sdn.Bhd., Bukit Kepayang Palm Oil Mill, 28300 Triang, Pahang FELDA Plantation Terapai 3, 28300 Triang, Pahang FELDA Bukit Kepayang, Pejabat FELDA Bukit Kepayang, 28300 Triang, Pahang FELDA Mayam, Pejabat FELDA Mayam, 28200 Bera, Pahang FELDA Purun, Pejabat FELDA Purun, 28300 Triang, Pahang LOCATION (MAP AND GPS), MILL AND/OR HECTARAGE: (Location map Refer to Attachment 1 ) (In the case of multisite certification, list additional sites in attachments) : Mill / supply bases GPS Location Total area (ha) Latitude Longitude Bukit Kepayang Palm Oil Mill 03 2046.72” N 102 3550.55” E - FELDA Plantation Terapai 3 03 25’ 51.98” N 102 46’ 53.65” E 2,751.73 FELDA Bukit Kepayang 03 20’ 20.01” N 102 36’ 34.58” E 2,086.66 FELDA Mayam 03 21’ 55.10” N 102 37’ 38.39” E 2,318.45 FELDA Purun 03 22’ 22.62” N 102 38’ 0.03” E 3,007.60 *Coordinate readings were taken at the respective project administrative office AUDIT DATE : 25 th 27 th November 2013 DURATION : 9 auditor days STANDARD : Malaysian National Interpretation Working Group (MY-NIWG):November 2010 of the RSPO Principles and Criteria. RSPO Supply Chain Certification, November 2011. SCOPE OF REGISTRATION : Production of Crude Palm Oil and Palm Kernel RSPO SUPPLY CHAIN MODEL : Mass Balance The following attachments form part of this report: Non-conformity Report(s) List of additional site(s) Report by Audit Team Leader Acknowledgement by Client’s Representative Name : Ruzita Abd Gani Name : Norazam Bin Abdul Hameed Signature : Signature : Date : 23 December 2013 Date : 27 January 2014

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Page 1: CONFIDENTIAL - RSPO...FELDA Certification Unit – Bukit Kepayang Palm Oil Mill Complex FELDA Bukit Kepayang, Pejabat FELDA Bukit Kepayang, arising or coming to its attention with

SQAS/MSC/FOR/32-09 Issue 1 Rev. 0

CONFIDENTIAL

SIRIM QAS INTERNATIONAL SDN. BHD. Building 4, SIRIM Complex, No. 1 ,Persiaran Dato’ Menteri,

Section 2, P.O. Box 7035, 40911 Shah Alam, Selangor, Malaysia.

File Ref. : EF00730003

RSPO SURVEILLANCE AUDIT REPORT

CLIENT : FELDA AGRICULTURAL SERVICES SDN. BHD., [ BUKIT KEPAYANG PALM OIL MILL ] FELDA Palm Industries Sdn.Bhd., Bukit Kepayang Palm Oil Mill, 28300 Triang, Pahang FELDA Plantation Terapai 3, 28300 Triang, Pahang FELDA Bukit Kepayang, Pejabat FELDA Bukit Kepayang, 28300 Triang, Pahang FELDA Mayam, Pejabat FELDA Mayam, 28200 Bera, Pahang FELDA Purun, Pejabat FELDA Purun, 28300 Triang, Pahang LOCATION (MAP AND GPS), MILL AND/OR HECTARAGE: (Location map –Refer to Attachment 1 ) (In the case of multisite certification, list additional sites in attachments) :

Mill / supply bases GPS Location

Total area (ha) Latitude Longitude

Bukit Kepayang Palm Oil Mill

03 20’ 46.72” N 102 35’ 50.55” E -

FELDA Plantation Terapai 3

03 25’ 51.98” N 102 46’ 53.65” E 2,751.73

FELDA Bukit Kepayang

03 20’ 20.01” N 102 36’ 34.58” E 2,086.66

FELDA Mayam

03 21’ 55.10” N 102 37’ 38.39” E 2,318.45

FELDA Purun

03 22’ 22.62” N 102 38’ 0.03” E 3,007.60

*Coordinate readings were taken at the respective project administrative office

AUDIT DATE : 25th – 27th November 2013

DURATION : 9 auditor days

STANDARD : Malaysian National Interpretation Working Group (MY-NIWG):November 2010 of the RSPO Principles and Criteria. RSPO Supply Chain Certification, November 2011.

SCOPE OF REGISTRATION : Production of Crude Palm Oil and Palm Kernel RSPO SUPPLY CHAIN MODEL : Mass Balance

The following attachments form part of this report:

Non-conformity Report(s) √ List of additional site(s)

Report by Audit Team Leader Acknowledgement by Client’s Representative

Name : Ruzita Abd Gani Name : Norazam Bin Abdul Hameed

Signature : Signature :

Date : 23 December 2013 Date : 27 January 2014

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RSPO P & C SURVEILLANCE AUDIT REPORT

A. AUDIT FINDINGS

a) Changes to certified products in accordance to the production the previous year Findings from current audit: Data from Jan 2012 to Dec 2012

FFB Processed (tonne)

CPO Production (tonne)

PK Production (tonne)

222,430.00 46,107.98 12,164.21

Data from Jan 2013 toDec 2013

FFB Processed

(tonne)

CPO Production (tonne)

PK Production (tonne)

Actual : Jan 2013 to Oct 2013 170,200.00 36,593.00 9,616.00

Estimate : Nov 2013 to Dec 2013 38,100.00 7,948.54 2127.72

Total 208,200 44,541.54 11,743.72

b) Other changes (e.g. timebound plan, organizational structure, new contact person, addresses, etc).

i. Timebound plan

RSPO Time Bound Plan – Original Plan

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Latest FELDA RSPO Time Bound Plan – revised 1

There is no change on the commitment year to ensure all the FELDA certification unit to be certified with RSPO. For 2012, there are 8 Certification Unit was audited by the RSPO registered Certification Body and pending for RSPO approval. As todate 17 CU has been obtained RSPO certification and 8 CU has been audited and report submitted to RSPO.

ii. Contact person New contact person Name : Anthonius Sani Designation : Sustainability Manager Address : PSQM Department, Tingkat 3, Balai Felda, Jalan Gurney 01, 54000 KL Telephone : 03 - 26005354 Fax: 03 - 26987816 Email address : [email protected]

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c) All associated smallholders (including scheme smallholders) where their fruit supply is included , by the mill, are audited

Yes √ No

within 3 years from when their fruit was first included in the mill certification

If no, please state reasons: The smallholder not ready for certification

d) Any new acquisition which has replaced primary forests or HCV areas

Yes √ No

e) Status of previous non conformity(ies) √ Closed

Not closed*

* If not closed, will be upgraded to major non conformity

f) Environmental / Social Issue Bukit Kepayang CU has continued to conduct the environmental aspects and impacts risk assessment for

activities related to their operation. Among the activities assessed related to mill operation are chemical mixing, boiler operation, discharge of effluent discharge and smoke emission. While for estate operation, among the activity identified harvesting, chemical consumption, diesel consumption, management of empty chemical containers. The environmental plan has implemented accordingly and evidence of compliance were observed at site except minor lapses was found in the FELDA Bukit Kepayang on the management of empty chemical containers and environmental improvement plan was not evident.

Good waste management was implemented throughout Bukit Kepayang CU example 3R and designated domestic land fill. Minor nonconformity was raised, based on site visit at FELDA Bukit Kepayang’s worker hostel and behind chemical store was found traces of open burning activities. A documented SIA had been sighted. The assessment was conducted with the participation of affected stakeholder. The records of meeting held were made available. The improvement plan was carried out accordingly. Employee contracts of pay and conditions were documented however based on interview at FELDA Plantation Terapai 3 contract of employement for certain foreign workers i.e. Bangladesh, Indonesia & Nepal were not made available. Inaddition they are not aware on the detail of contract agreement and pay slip statement. Minor Nonconformity was raised. FELDA has a specific procedure in place for identifying legal and customary rights and for identifying people entitled to compensation. This procedure had been continued implemented in the form of consultation with Orang Asli leaders and villagers. As to date, there had been no claim for compesation made against the Bukit Kepayang CU by the surrounding Orang Asli.

g) Complaint received from stakeholder (if any) No compaint received from external stakeholder. Assessment on the records found that complaint received

from internal stakeholder i.e. workers mainly related to housing such as water pipe leaking, roofing leaking and to street lighting. The necessary action was taken accordingly. Random intervirw with the workers was confirm the established procedure entitle “Rungutan, keingkaran, siasatan insiden dan tindakan pembetulan” implemented accordingly.

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B. DETAILS OF NON-CONFORMITY REPORT :

Total no. of minor NCR(s) : 5 List : RA01, RA02, VS01, MRS01, MRS02

Total no. of major NCR(s) : 3 List : RA03, RA04, VS02

RSPO P & C SURVEILLANCE AUDIT REPORT

C. AUDIT FINDINGS

i. Certification details The name of the certified unit and its RSPO identification are as follows:

Parent company : FELDA Certification number : RSPO 0013 The date of certification: Date of the RSPO approval is 7 January 2013 Date of previous assessment : 27 – 29 December 2011

ii. Description of supply based on palm age profile Refer to Attachment 2

iii. Assessment team members Refer to Attachment 3

iv. Assessment program Refer to attachment 4

v. Details of audit Refer to attachment 5

vi Details of audit findings raised in surveillance audit Refer to attachment 6 vii. Date of next surveillance visit

The next surveillance assessment will be scheduled around December 2014

D. AUDIT CONCLUSION Based on the evidence gathered it can be concluded that KOMPLEKS KILANG BUKIT KEPAYANG CERTIFICATION UNIT continue to conform to the requirements of the RSPO MY-NIWG:2010 and RSPO Supply Chain Certification Standard 2011. All major nonconformities have been closed out through verification of corrective action records.

Therefore, the assessment team recommends KOMPLEKS KILANG BUKIT KEPAYANG CERTIFICATION UNIT to continue to be certified against RSPO MY-NIWG : 2010 and RSPO Supply Chain Certification Standard 2011.

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E. RECOMMENDATION

No NCR recorded. Recommended to continue certification.

Minor NCR(s) recorded. Recommended to continue certification conditional upon

acceptance of corrective action plans within 1 month of the date of this audit. Note: Minor NCRs raised in the audit which are not addressed in the subsequent audit shall be upgraded to major NCRs .

Major NCR(s) recorded. Proposed corrective action and evidence of implementation within 2 months of the date of this audit to be submitted to SIRIM QAS International Verification on major NCRs is required : On-site audit of the following areas is recommended within 2 months (if applicable) √ On-site audit not required. Records of implementation of corrective action to be submitted for verification.

Note: The major NCRs raised during surveillance audit shall be addressed within 60 days or certificate shall be suspended. Major NCRs which are not addressed within a further 60 days shall result in the certificate being withdrawn.

F. IT IS CONFIRMED THAT ALL CORRECTIVE ACTIONS TAKEN HAVE BEEN SATISFACTORILY VERIFIED. RECOMMENDED FOR CERTIFICATION.

Audit Team Leader : RUZITA ABD GANI

27 Jan. 2014

(Name) (Signature) (Date)

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Attachment 1a

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Attachment 1b

Location Map for Felda Bukit Kepayang Certification Unit in Pahang, Malaysia

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Attachment 1c

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Attachment 1d

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Attachment 1d

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Attachment 1e

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Attachment 2

Description of supply based on palm age profile

Name of Supply base Year of planting

Planting cycle Mature / Immature

Total area (ha)

Planted area (ha)

FELDA Plantation Terapai 3 1987 / 1991 1st generation Mature 2,751.73 2,437.07

FELDA Bukit Kepayang 1998 2nd generation Mature 2,086.66 1,950.74

FELDA Purun 2003 2nd generation Mature 3,007.60 2,591.91

FELDA Mayam 2001 / 2006 2nd generation Mature 2,318.45 2,291.08

Total 10,164.44 9,270.80

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Attachment 3

Assessment team

Assessment Team

Role/Area of RSPO Requirement

Qualification and Experience

Ruzita Abd Gani

Lead Assessor / Milling Operation, Occupational Health and Safety, Environment and related legal issues

Over 760 days of auditing experience, having audited ISO 14001, OHSAS 18001 & RSPO.

Five and half years experience in palm oil milling

Successfully Completed RSPO Lead Assessor Course - 2008

Successfully completed ISO 14001 EMS EARA approved Lead Assessor - 2002

Successfully completed IRCA accredited Lead Assessor training for ISO 9001:2004

Successfully completed OHSAS 18001 OHSMS IRCA accredited Lead Assessor Course – 2005

Registered Environmental Auditor with Department of Environment (DOE) - 2010

B.Sc. (Hons) Chemical Engineering

Valence Shem

Assessor / Good Agricultural Practices (GAP), environmental and related legal issues

Collected more than 150 Auditor days in auditing ISO 14001 and RSPO

Nine years experience in Oil Palm Plantation management

Successfully completed IEMA accredited Lead Assessor training for ISO 14001: 2004

B.Tech. (Hons) Industrial Technology

Successfully completed and passed the RSPO Lead Assessor Course – 2011.

Mohd Razman Salim

Assessor / workers & community issues, HCV, habitats & ecology and related legal

5 years experience in Forest related areas as a researcher with FRIM ( 2007 t0 2012)

Over 70 man-days of auditing experience, having audited on ISO 9001 QMS, ISO 14001 EMS, OHSAS 18001 OHSMS and RSPO.

Over 30 man-days in auditing MC&I as forest auditor

Attended Training on RSPO P & C and certification requirements - January 2013

Attended Auditor Training Course on Malaysian Criteria and Indicators for Natural Forest & Forest Plantation Certification (MC&I) organized by MTCC 2013.

Successfully completed ISO 9001 QMS Lead Auditor Course, 2013.

Successfully completed ISO 14001 EMS Lead Auditor Course, 2013.

Successfully completed OHSAS 18001 OHSMS Lead Auditor Course, 2013.

B.Sc. of Forestry (Forest Production)

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Attachment 4 Detail Assessment program

SIRIM QAS INTERNATIONAL SDN. BHD.

Food, Agriculture & Forestry Certification Section

RSPO SURVEILLANCE ASSESSMENT PLAN

1. Objectives The objectives of the assessment are as follows:

(i) To determine IOI Corporation Berhad, Bukit Leelau Certification Unit conformance against the RSPO Principles & Criteria Malaysian National Interpretation (MYNI) and RSPO Supply Chain Certification Standard

(ii) To verify the effective implementation of corrective actions arising from the findings of last assessment.

(iii) To make appropriate recommendations based on the assessment findings. 2. Date of assessment : 25 - 27 November 2013 3. Site of assessment : FELDA Palm Industries Sdn. Bhd. FELDA Certification Unit – Bukit Kepayang Palm Oil Mill Complex

Kilang Sawit Bukit Kepayang, 28300 Triang, Pahang Darul Makmur

FELDA Plantation Terapai 3, d/a FELDA Mayam, 28300 Triang,Pahang

FELDA Bukit Kepayang, Pejabat FELDA Bukit Kepayang, 28200 Bera, Pahang

FELDA Purun, Pejabat FELDA Purun, 28300 Triang, Pahang

FELDA Mayam, Pejabat FELDA Mayam, 28200 Bera, Pahang

4. Scope of certification : Bukit Kepayang Palm Oil Mill and its Supply Bases 5. Reference Standard : RSPO P&C MYNI RSPO Supply Chain Certification 2011

Company’s audit criteria including Company’s Manual/Procedures 6. Assessment Team

a. Lead Assessor : Ruzita Abd Gani b. Assessor : Valence Shem : Mohd Razman Salim c. Observer : Nil If there is any objection to the proposed audit team, the organization is required to inform the Lead Assessor/RSPO Section Manager.

7. Audit Method Site audits including observation of practices, interviews with interested parties (employees, nearby population, etc.), documentation evaluation and evaluation of records. 8. Confidentiality Requirements SIRIM QAS International shall not disclose any information concerning the company regarding all matters arising or coming to its attention with the conduct of the programme, which is of confidential in nature other than information, which is in the public domain. In the event that there be any legal requirements for disclosing any information concerning the organization, SIRIM QAS International shall inform the organization of the information to be disclosed. 8. Working Language : English and Bahasa Malaysia 9. Reporting a) Language : English

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b) Format : Verbal and written c) Expected date of issue : Thirty days after the date of assessment d) Distribution list : client file 10. Facilities Required Room for discussion Relevant document and record Personnel protective equipment if required Photocopy facilities A guide for each assessor 11. Assessment Programme Details : As shown below

Day 1: 25th November 2013 (Monday)

Time Activities / areas to be visited Auditee

9.00 a.m. Opening Meeting –FELDA Palm Industries Sdn Bhd Office, Bukit Kepayang Certification Unit. Audit team introduction and briefing on assessment objectives, scope, methodology, criteria and programmes by SIRIM QAS Audit Team Leader.

9.20 a.m.

Briefing on the organization background and implementation of RSPO at Bukit Kepayang Palm Oil Mill Complex Certification Unit (including actions taken to address Minor NCR raised during Stage 2 Audit) by FELDA Management Representative. Logistics discussion to the sites to be visited. Each assessor is to be provided with a FELDA transportation and Guide at each project site as each of the assessor will go separate ways. Note : MR – Management Representative

MR

Ruzita

Valence Razman

9.45 a.m. Ladang FELDA Bukit Kepayang Coverage of assessment: P1, P2,(C2.1), P3, P4 (C4.1, C4.7, C4.8), P8

Commitments to transparency

Laws and regulations

Commitment to long-term economic and financial viability

Safety & Health practice – witness activities at site

Hazard identification and Risk Management

Waste & Chemical management

Chemical/ fertilizer store, workshop

Interview with workers , safety committee and contractors

Facilities at workplace

Training and skill development programmes

Local sustainable development

Continuous improvement

Other area identified during the assessment

Ladang FELDA Purun Coverage of assessment: P2 (C2.2.2), P3, P4 (C4.1 -C4.6, C4.7 C4.8), P5 (C5.1),P7 (if any), P8

Laws and regulations

Commitment to long-term economic and financial viability

Good Agricultural Practice- witness activities at site (weeding/ spraying, etc)

EFB mulching, POME application

Nursery (if any)

Safety & Health practice – witness activities at site

Waste & Chemical management

Chemical store/fertilizer

Plantation on hilly/swampy area

IPM implementation, training and safe use of agro-chemicals.

Management and disposal of waste including pesticides containers

New planting

Continuous improvement

Ladang FELDA Purun Coverage of assessment: P2 (C2.1, I2.2.3), P4 (C4.1, C4.3, C4.4, C4.8), P5, C5.2, P6, P8

Laws and regulations

Inspection of protected sites with HCV attributes

Forested area

Plantation Boundary, adjacent and neighbouring land use

Riparian zone

River system and Water bodies

Source of water supply

Continuous improvement

Line site

Interview local communities and stakeholders

Recycling activities

Controlled/open burning

Pollution mitigating plans

Local sustainable development

Other area identified

Auditor Guide

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Other area identified during the assessment

during the assessment

1.00 p.m. LUNCH BREAK and SOLAT All

2.00 p.m. Continue assessment

Verification of previous audit findings

Guide(s) for each auditor

5.00 p.m. Assessment team discussion and verification on any outstanding issues. Note : Assessor to inform auditee on the required document / records.

All Auditors

5.30 p.m End of Day 1 assessment

Day 2: 24th November 2013 (Tuesday)

Time Activities / areas to be visited Auditee

Ruzita Valence Razman

8.30 a.m.

FELDA Plantation Terapai 3 Coverage of assessment: P1, P2,(C2.1), P3, P5, P4 (C4.1, C4.7, C4.8), P8

Follow up from Stage 1 assessment findings.

Commitments to transparency

Laws and regulations

Commitment to long-term economic and financial viability

Safety & Health practice – witness activities at site

Waste & Chemical management

Chemical/ fertilizer store, workshop

Interview with workers , safety committee and contractors

Facilities at workplace (water treatment plant, clinic & etc)

Continuous improvement

Other area identified during the assessment

Ladang FELDA Purun

Continue assessment

Other area identified during the assessment

FELDA Plantation Terapai 3 Coverage of assessment: P2 (C2.1, I2.2.3), P4 (C4.1, C4.3, C4.4, C4.8), P5, C5.2, P6, P8

Laws and regulations

Inspection of protected sites with HCV attributes

Forested area

Plantation Boundary, adjacent and neighbouring land use

Riparian zone

River system and Water bodies

Source of water supply

Continuous improvement

Line site

Interview local communities and stakeholders

Recycling activities

Controlled/open burning

Local sustainable development

Other area identified during the assessment

Guide(s) for each auditor

1.00 p.m. LUNCH BREAK and SOLAT All

2.00 p.m. Continue assessment Verification of previous audit findings

Guide(s) for each auditor

5.00 p.m. Assessment team discussion and verification on any outstanding issues. Note : Assessor to inform auditee on the required document / records.

All Auditors

5.30 p.m End of Day 2 assessment

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Day 3: 27th November 2013 (Wednesday)

Time Activities / areas to be visited Auditee

Ruzita Valence Razman

Kilang Sawit Bukit Kepayang

Laws and regulations

Commitment to long-term economic and financial viability

Facilities at workplace (water treatment plant, clinic & etc)

Aspects/impacts of plantation management

Waste management including disposal site

Line site

Recycling activities

Controlled/open burning

Pollution mitigating plans

Local sustainable development

Continuous improvement

Other area identified during the assessment

Kilang Sawit Bukit Kepayang RSPO Supply Chain implementation including the model used

General Chain of Custody System Requirements for the supply chain

Documented procedures

Purchasing and goods in

Outsourcing activity

Sales and goods out

Processing

Records keeping

Registration

Training

Claims

Other area identified during the assessment

Kilang Sawit Bukit Kepayang Coverage of assessment: P6 Discussion with relevant management (CSR, community affairs) and view documentation such as SIA, assessment and management plans.

Laws and regulations

Land titles user rights

Local communities and stakeholders

Interview with Union representatives

Workers Issues

Facilities at workplace (rest area, etc)

Line site

Facilities provided at line site (i.e. mosque, surau, community center, GPW, Tadika, provision shop & etc

Other area identified during the assessment

Guide(s) for each auditor

1.00 p.m. LUNCH BREAK and SHOLAT All

2.00 p.m.

Verification on outstanding issues from Day 1 & Day 2 Assessor to inform auditee on the required document / records Audit Team discussion and preparation of assessment findings.

All Auditors

3.00 p.m. Discussion and acceptance on assessment findings with Management Representative MR

4.00 pm Closing meeting at FELDA Palm Industries Sdn Bhd Office, Bukit Kepayang – presentation of FELDA Certification Unit – Bukit Kepayang Palm Oil Mill Complex assessment findings

All

5.00 pm End of assessment All

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Attachment 5 Detail of Audit

Principle 1: Commitment to Transparency

Criterion 1.1: Oil palm growers and millers provide adequate information to other stakeholders on environmental, social and legal issues relevant to RSPO Criteria, in appropriate language & forms to allow for effective participation in decision making.

1.1.1 Records of requests and responses must be maintained. Major

Findings In compliance: Yes: X No:

Objective evidence:

Bukit Kepayang CU continued to use the existing procedure for responding to request for information on issues relevant to the RSPO criteria. Adequate information had been provided to interested s

Criterion 1.2: Management documents are publicly available, except where this is prevented by commercial

confidentiality or where disclosure of information would result in negative environmental or social outcomes

1.2.1 Land titles / user rights (C 2.2)

Findings In compliance: Yes: X No:

Objective evidence:

The land title and relevant documents were made publicly available upon request at the FELDA Plantation Terapai 3 and Bukit Kepayang POM. While, all settlers (647 settlers) at the FELDA Purun have already obtained their land titles for the smallholdings involved since 2012.

1.2.2 Safety and health plan (C 4.7)

Findings In compliance: Yes: X No:

Objective evidence:

The safety and health plan is made publically available and as to date no body request the information from Bukit Kepayang CU.

1.2.3 Plans and impact assessment relating to environmental and social impacts

(C 5.1, 6.1, 7.1, 7.3)

Findings In compliance: Yes: X No:

Objective evidence:

Plans and impact assessment for HCV and social impact assessment (SIA) were documented by FELDA Purun, FELDA Plantation Terapai 3 & Bukit Kepayang POM. The reports was established in 2011 and revised every 5 years. The report compiled HCV for Felda Purun, Felda Plantation Terapai 3 and Bukit Kepayang POM. While the SIA report was based on estate, mill and plantation which established from collection data of questionnaires.

1.2.4 Pollution Prevention Plan (C 5.6)

Findings In compliance: Yes: X No:

Objective evidence:

The pollution prevention plan is made publically available the FELDA’s website and as to date no body request the information from Bukit Kepayang CU.

1.2.5 Details of complaints and Grievances (C 6.3)

Findings In compliance: Yes: X No:

Objective evidence:

Details of complaints and grievances was recorded in the grievances book, suggestion box, verbally and through stakeholders meeting between Bukit Kepayang CU with internal and external stakeholders.

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1.2.6 Negotiation procedures (C 6.4)

Findings In compliance: Yes: X No:

Objective evidence:

As found in the last assessment, there was documentation of the negotiation procedures. There was evidence that the system was open to all aggrieved parties – internal communities as well as neighbouring communities and the general public.

1.2.7 Continuous improvement plan (C 8.1)

Findings In compliance: Yes: X No:

Objective evidence:

Bukit Kepayang Cu has established the continuous improvement plan (Refer P8)

Principle 2: Compliance with Applicable Laws and Regulation

Criterion 2.1: There is compliance with all applicable local, national and ratified international laws and regulations.

2.1.1 Evidence of compliance with legal requirements Major

Findings In compliance: Yes: No: X

Objective evidence:

Bukit Kepayang CU had followed procedure for documenting, checking and assessment of legal compliance with applicable laws including international laws and conventions ratified by the Malaysian Government relevant to its operations. List of laws/regulations and their summaries related to RSPO were available. Generally, FBKCU were in compliance with all applicable local, national and ratified international laws and regulations, for example, all foreign workers have valid Visit Pass (Temporary Employment) issued by the Department of Immigration, Malaysia; machineries requiring Certificate of Fitness were up-to-date and Competent Persons were available at the mill, as demanded by the Factories and Machinery Act 1967. Verification on previous opportunities for Improvement raised during stage 2 audit, the applicable clauses and sub-clauses of the regulation was addressed in the legal register list.

With respect to the terms and conditions of employment, it was confirmed that the FBKCU was in compliance with the Employment Act 1955 related to the provisions of wages, paid public holidays, paid annual leave and sick leave.

Among the evidence of legal compliance were verified in the Bukit Kepayang CU:

- Bukit Kepayang palm Oil Mill and FELDA Plantation Terapai 3, MPOB license for purchasing FFB are found valid i.e 1 April 2013 to 31 March 2014 and 1 July 2013 to 30 Junr 2014 respectively

- DOE license for milling operate and mill effluent discharge i.e.1 July 2013 to 30 June 2014 for Bukit Kepayang Palm Oil MIll

- Energy commission license for electricity generation was valid

- Permits to keep diesel from Domestic Trade Ministry was valid

- Certificate of fitness for air compressor at FELDA Purun was maintained & found valid.

It was observed no changes to the mills’ machineries and activities therefore no new legal requirement was identified.

Operational performance monitoring activities such as noise emission, smoke and dust particulate from boiler operation and effluent discharges was carried out according. The SAMM accredited laboratory was appointed to conduct the effluent monitoring.

Bukit Kepayang palm Oil Mill has obtained DOE license i.e. license reference number 004381 where mill has complied most of the requirement except requirement to maintain log book to record flow rate of influent, date & time of effluent discharge, sludge quantity for effluent treatment plant operation. Major nonconformity was raised.

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2.1.2 A documented system, which includes written information on legal requirements Minor

Findings In compliance: Yes: X No:

Objective evidence:

Bukit Kepayang CU has continued to implement and maintain the established documented system for identifying, accessing, tracking and monitoring of compliance with the legal requirements that applicable to Bukit Kepayang CU’s operation.

AT FELDA Bukit Kepayang and FELDA Plantation Terapai 3, the applicable regulation was registered in the “Senarai undang-undang dan keperluan yang berkaitan dgn Penerola bagi pematuhan RSPO” and its was reviewed on 15 October 2013 and 9 October 2013 respectively. While, Legal register entitled “Senarai Undang2 dan keperluan bagi pematuhan peneroka” (FAS-RSPO L1/K2.1/2.1.2) is used to identify the applicable legal requirements at FELDA Purun.

2.1.3 A mechanism for ensuring that they are implemented Minor

Findings In compliance: Yes: X No:

Objective evidence:

A mechanism for ensuring that legal requirements are implemented were established and maintained. The evaluation of legal compliance was carried periodically. Record assessment was confirmed Bukit Kepayang Palm Oil Mill carried out it legal compliance checking annually.

2.1.4 A system for tracking any changes in the law Minor

Findings In compliance: Yes: X No:

Objective evidence:

Mechanism to track any changes in the law is spelt out in a procedure entitled “Mekanisma Pengesanan Perubahan Undang-undang”.

The person responsible to track & update changes was appointed. The appointment letter “Perlantikan Pegawai Pemantauan Pematuhan Undang-undang” date 7 November 2013 to Penolong Pengurus, Ladang FELDA Terapai 3 was observed.

Criterion 2.2: The right to use the land can be demonstrated, and is not legitimately contested by local communities with demonstrable rights.

2.2.1 Evidence of legal ownership of the land including history of land tenure Major

Findings In compliance: Yes: X No:

Objective evidence:

Assessment team has verified, there was land ownership documents for the smallholders, FELDA Purun. Land titles were available in documents such as Kanun Tanah Negara (Borang 5EK, 11BK & 11 AK). The settlers, plantation and mill complied with the terms of the land titles including conditions for agricultural cultivation as stated in Borang 5EK & B2. All land titles were a leased hold title for 99 years which rented from Soil Department of Bera, Pahang.

Below were 3 samples of land title belongs to settlers at FELDA Purun.

Owner Title No. Lot Hectares Status Date

registered Duration

Alias Bin Lambak (Techno-Plant)

4596 PT 5993 4.038 Agricultural 19 December 1996

99 years

Tumin Bin Setno (Self-managed)

4411 PT 5808 1.94 Agricultural 19 December 1996

99 years

Che Rahim (Self-managed)

4418 PT 5815 1.781 Agricultural 19 December 1996

99 years

There was no conflict reported on land claim between local communities, Orang Asli, settlers and FELDA staffs.

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Total land area of FELDA Purun was 2948.92 ha which shared with 647 settlers. While, FELDA Plantation Terapai 3 was 2552.42 ha with leased hold title for 99 years until 6 December 2100 and some of the land agreement will end on 17 February 2013. For Bukit Kepayang POM land area was 7.178 ha.

2.2.2 Growers must show that they comply with the terms of the land title. [This indicator is to be read with Guidance 2]

Major

Findings In compliance: Yes: X No:

Objective evidence:

All land title in FELDA Purun, FELDA Plantation Terapai 3 & Bukit Kepayang POM were used for agricultural purposes as stated in the land agreement - 'Borang 11 AK and B2'.

2.2.3 Evidence that boundary stones along the perimeter adjacent to state land and other reserves are being located and visibly maintained

Minor

Findings In compliance: Yes: No: X

Objective evidence:

Boundary stones in the FELDA Purun was located and visibly maintained along the perimeter adjacent to other neighbouring companies estate/plantation such as Kertau Plantation, Senandung Plantation, FELCRA Bohor and Purun Forest Reserved.

Figure 1. Boundary stone was maintained and visibly available between Purun Forest Reserved and FELDA

Purun.

Figure 2. Signboard of Purun Forest Reserved erected by Pahang Forestry Department.

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Figure 3. FELDA had erected awareness signboard 'Forests Boundary' to remind their staff not to cross the

border.

Site visit along the perimeter adjacent between Chini Forest Reserve and FELDA Plantation Terapai 3 - PM92A, it was no evidence that boundary stones was visibly maintained by the Ladang. A Minor Non conformity was raised.

Figure 4. No boundary stones between FELDA Plantation Terapai 3 and Chini Forest Reserved.

2.2.4 Where there are, or have been, disputes, proof of resolution or progress towards resolution by conflict resolution processes acceptable to all parties are implemented. (CF 2.3.3, 6.4.1 and 6.4.2)

Minor

Findings In compliance: Yes: X No:

Objective evidence:

As To-date, there was no conflict on land disputes issued by their stakeholders to FELDA Purun, FELDA Plantation Terapai 3 & Bukit Kepayang POM.

Criterion 2.3: Use of the land for oil palm does not diminish the legal rights, or customary rights, of other users, without their free, prior and informed consent.

2.3.1 Where lands are encumbered by customary rights, participatory mapping should be conducted to construct maps that show the extent of these rights.

Major

Findings In compliance: Yes: X No:

Objective evidence:

There is no dispute reported at the time of audit.

FELDA, local communities, Orang Asli and settlers did not diminish the legal rights or customary rights. The communities did not claim any customary land within the FELDA smallholdings. These Orang Asli lived and cultivated rubber, oil palm and fruit trees on Orang Asli reserved land.

2.3.2 Map of appropriate scale showing extent of claims under dispute Major

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Findings In compliance: Yes: X No:

Objective evidence:

As to-date, no issuance of land disputes/claims in the Bukit Kepayang Certification Unit.

2.3.3 Copies of negotiated agreements detailing process of consent (C 2.2, 7.5, 7.6) Minor

Findings In compliance: Yes: X No:

Objective evidence:

There is no dispute reported at the time of audit. However, the procedure for negotiation is made publicly available in the company website at:

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

Criterion 3.1: There is an implemented management plan that aims to achieve long-term economic and financial viability

3.1.1 Annual budget with a minimum of 2 years of projection Major

Findings In compliance: Yes: X No:

Objective evidence:

At FELDA Plantation Terapai 3, Rumusan Anggaran Belanjawan tahun 2014 (BEL/L/001 ) was established.

Sighted the mill budget has covered the provision of allocation for operation, maintenance, training, occupational safety and health and environmental upkeep.

Budget in FELDA Purun is available with projection until 2015 for Felda (settlers) and Technoplant. Budget covers the expenditure of field maintenance, harvesting and provision of facilities such as housing repair.

Verify previous opportunities for improvement raised during stage 2 audit, site inspection at the field and interview with the operators was confirmed that loose palm oil fruits have been collected regularly.

3.1.2 Annual replanting programme projected for a minimum 5 years with yearly review Minor

Findings In compliance: Yes: X No:

Objective evidence:

Annual replanting programme projected available for FELDA Plantation Terapai 3 :

2014 : zero

2015 : zero

2016 : 355.96 ha - PM92A (blok 1-4)

2017 : 445.09 ha – PM98B (Division 1 – blok 5-10 )

2018 : 516.05 ha – PM98B (Division 2 – blok 11-16)

2019 : 492 ha – PM89C (Division 1 – blok 17-22)

2020 : 333.40 ha – PM98C (Division 2 – blok 23 -26)

No necessity to develop replanting programme at FELDA Purun since palms are still young. The oldest phase is only 10 years old.

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

Criterion 4.1: Operating procedures are appropriately documented and consistently implemented and monitored.

4.1.1 Documented Standard Operating Procedures (SOP) for estates and mills Major

Findings In compliance: Yes: X No:

Objective Bukit Kepayang CU continued to use the established Standard Operating Procedure (SOP).

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evidence: SOPs are available entitled “Manual Ladang Sawit Lestari and Syor Teknikal FASSB”. The objectives are to have good agricultural practice, to carry out duty in safely manner either occupationally or environmentally, which covers the various levels of operation such as nursery, pre-mature palm, matured palm, fertilizer application and replanting.

Contents of the Manual are disseminated to the workers and settlers through morning roll call and trainings. The Manual is also kept at a location in the administration office where everyone can refer to. Apart from that, consultation with the settlers is also a part of communication process.

Since no change on the milling operation , Bukit Kepayang Palm Oil Mill still continue to follow the existing SOP. The SOP entitle “Quality Occupational Safety, Health and Environmental Manual and procedure”

Site inspection and interview with workers were confirmed, the SOP are implemented and they are understood on the requirement stated in the SOP.

4.1.2 Records of monitoring and the actions taken are maintained and kept for a minimum of 12 months

Minor

Findings In compliance: Yes: No: X

Objective evidence:

Records of implementation were well maintained which includes the harvesting intervals, progress reports on fertilizers application, weeding, road maintenance, issuance of PPE, etc. for the operation supervised by Technoplant. However, monitoring records on SOP implementation by the settlers (which are not under Technoplant) such as (but not limited to) type of PPE used, medical surveillance of chemical spraying operators and type of agrichemicals used were not available . Minor nonconformity was raised.

At the mill, monitoring records for air emission from boiler, quality of effluent discharges and generation of waste were maintained. Sighted the analysis result for effluent discharge from January 2013 till October 2013. There are certain occasion i.e month of March 2013 that Bio-oxygen Demand (BOD) exceeded the DOE limit at 209mg/l against 100mg/l. The mill has taken necessary action and as a result the following month the BOD reading below the DOE limit i.e. 77mg/l.

Criterion 4.2: Practices maintain soil fertility at, or where possible improve soil fertility to a level that ensures optimal and sustained yield.

4.2.1 Monitoring of fertilizer inputs through annual fertilizer recommendations Minor

Findings In compliance: Yes: X No:

Objective evidence:

Recommendation done by Lead Agronomist. Letter dated 22/2/2013 was referred [ref.: (14)HQKN 100/1/01-ii/13 (FTPSB)] to. The report consists of historical yield, soil type, leaf nutrient status, rainfall distribution etc. Average recommended quantity of fertilizers to be applied is 9.5 kg/palm/year, mainly with straight fertilizer (e.g. Ground Magnesium Limestone, RP) and mixture fertilizer (e.g. NK). Manuring schedule is available for 2013 and at the point of this visit, Felda Purun has completed 80% of the programme.

4.2.2 Evidence of periodic tissue and soil sampling to monitor changes in nutrient status Minor

Findings In compliance: Yes: X No:

Objective evidence:

Tissue and soil sampling report were incorporated in the agronomist fertilizer recommendation. Refer 4.2.1.

4.2.3 Monitor the area on which EFB, POME and zero-burn replanting is applied Minor

Findings In compliance: Yes: X No:

Objective evidence:

At FELDA Purun (Verify previous opportunities for improvement raised during stage 2 audit), recommended by agronomist to apply EFB at laterite area only. Records of monitoring were available in “Kemajuan Kerja Mengangkut & Menabur Tandan Kosong”. For 2013, only 8 Ha identified to be mulched, each in Block 4 & Block 5. Rate/Ha required by the “Syor Teknikal FASSB” is 40 mt/Ha. However, Felda Purun only managed to apply 6 mt/Ha in Block 4 and 2 mt/Ha in Block 5 due to the hilly parts of the field were not accessible and still in progress for EFB

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mulching. Apart from that, the mill is also need to burn the EFB to produce bunch ash, hence limited supply.

FELDA Bukit Kepayang and Felda Purun have no replanting activity and no trace of opened burning observed during the visit.

Verify previous opportunities for improvement raised during stage 2 audit, site inspection at the field and interview with the operators was

Criterion 4.3: Practices minimize and control erosion and degradation of soils.

4.3.1 Documented evidence of practices minimizing soil erosion and degradation (including maps)

Minor

Findings In compliance: Yes: X No:

Objective evidence:

A detailed map on slopes of different gradients is available. There is about 30% of Felda Purun has hilly terrain area.

Areas above 25 degrees were demarcated. Cover crops were planted to minimize soil erosion. The estates inspected were generally protected by natural vegetation without being exposed to soil erosion.

Site visit and interview with relevant person in-charge was confirm there are no issue of spraying bracken and conservation terraces not constructed.

4.3.2 Avoid or minimize bare or exposed soil within estates Minor

Findings In compliance: Yes: X No:

Objective evidence:

Generally, there was no bare or exposed soil was observed during the visit at FELDA Purun, FELDA Bukit Kepayang and FELDA Plantation Terapai 3

4.3.3 Presence of road maintenance programme Minor

Findings In compliance: Yes: X No:

Objective evidence:

At FELDA Purun, road maintenance programme has been incorporated with the contract award to a contractor. Latest programme is from 1/8/2012 to 30/11/2012. Activities of road maintenance include road widening, grading, compacting and resurfacing covering around 145 Ha. Based on visit, road condition is generally in acceptable condition.

4.3.4 Subsidence of peat soils should be minimized through an effective and documented water management programme

Minor

Findings In compliance: Yes: X No:

Objective evidence:

There was no peat soil area in the Bukit Kepayang CU and this was confirmed by all Pengurus Ladang involved. The assessment team has sighted the soil map of Felda Purun is covered by Bungor series (55%), Segamat series (25%) and Melaka series (20%).

4.3.5 Best management practices should be in place for other fragile and problem soils (e.g. sandy, low organic matter and acid sulphate soils)

Minor

Findings In compliance: Yes: X No:

Objective evidence:

For areas which have laterite soil, Felda Purun maintain soft vegetation, EFB mulching, water division and silt pit.

Criterion 4.4: Practices maintain the quality and availability of surface and ground water.

4.4.1 Protection of water courses and wetlands, including maintaining and restoring appropriate riparian buffer zones at or before replanting along all natural waterways within the estate.

Major

Findings In compliance: Yes: X No:

Objective evidence:

Site visit at FELDA Plantation Terapai 3, riparian belts along Mentanang river was observed were in compliance with the local regulations. They had been demarcated and erected with appropriate

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signages to create awareness among FELDA staff, workers and settlers such as 'Buffer zone', 'No chemical spraying allowed' and 'Fertilizing activities not allowed' along the buffer zone area.

Figure 5. Mentanang river in the FELDA Plantation Terapai 3.

Figure 6. Among the signage erected by FELDA Plantation Terapai 3.

Figure 7. Among the signage erected by FELDA Plantation Terapai 3

4.4.2 No construction of bunds/weirs/dams across the main rivers or waterways passing through an estate

Major

Findings In compliance: Yes: X No:

Objective evidence:

There was no construction of bunds/weirs/dams seen across the main rivers or waterways of Mentanang river in the FELDA Plantation Terapai 3. This criteria was not applicable to FELDA Purun and Bukit Kepayang POM since there was no river passing through them.

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4.4.3 Outgoing water into main natural waterways should be monitored at a frequency that reflects the estates and mills current activities which may have negative impacts (Cross reference to 5.1 and 8.1)

Major

Findings In compliance: Yes: X No:

Objective evidence:

Frequency 1/year.

Incoming (punca air masuk ke ladang) was carried out on 11 Nov 2013 by Felda analytical lab , Jengka. Out going water (punca

FELDA Plantation Terapai 3 has managed to take water sample in the Mentanang river in order to monitoring any negative impact to the river.

Figure 8. Sampling point for water analysis in the FELDA Plantation Terapai 3.

4.4.4 Monitoring rainfall data for proper water management Minor

Findings In compliance: Yes: X No:

Objective evidence:

Rainfall data was made available to the assessor from January to October 2013 for all ladang and mill. At Felda Purun , yearly average is 1800 mm over 70 rain-days. Water management plan is not necessary since there is no peat land or wetland.

Rain water harvesting was not practiced at the line sites, mill and estate complexes.

4.4.5 Monitoring of water usage in mills (tonnage water use/tonne FFB processed) Minor

Findings In compliance: Yes: X No:

Objective evidence:

The mill had been monitoring water consumption and been reporting monthly usage against the FFB processed. Current water usage at ………………………… tonnage water use/tonne FFB processed.

During the conduct of audit incoming water flow meter was faulty and quantity of water usage based on theoretical.

4.4.6 Water drainage into protected areas is avoided wherever possible. Appropriate mitigating measures will be implemented following consultation with relevant stakeholders.

Minor

Findings In compliance: Yes: X No:

Objective evidence:

Although the FELDA Purun is situated next to Purun Forest Reserve, water drainage going into the area is minimal. Moreover, elephant trenches which were built by Felda Purun can avoid water from the estate going into the forest.

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4.4.7 Evidence of water management plans Minor

Findings In compliance: Yes: No: X

Objective evidence:

Among the water management plan established by the mill is …………………………………… Rain water harvesting was not practiced at the line sites, mill and estate complexes.

Criterion 4.5: Pests, disease, weeds and invasive introduced species are effectively managed using appropriate Integrated Pest Management (IPM) techniques.

4.5.1 Documented IPM system Minor

Findings In compliance: Yes: X No:

Objective evidence:

Bukit Kepayang CU continued to implement the established IPM system entitled FGV’s Manual Operasi Ladang. In the manual, recommendation for having biological control to supress pest such barn owl and beneficial plant is available.

4.5.2 Monitoring extent of IPM implementation for major pests Minor

Findings In compliance: Yes: X No:

Objective evidence:

At FELDA Purun,major pest is rat. Method of control that has been carried out so far is by baiting only. Establishing of barn owl boxes is still in a planning stage.

For beneficial plants, a program was established. Technoplant has planned to plant 2,900 points of beneficial plant to cover 350 Ha in 2014.

4.5.3 Recording areas where pesticides have been used Minor

Findings In compliance: Yes: X No:

Objective evidence:

At FELDA Purun , so far, pesticide used was only rat bait. Locations of where the rat baits had been applied were recorded in the store issuance record.

4.5.4 Monitoring of pesticide usage units per hectare or per ton crop e.g. total quantity of active ingredients (a.i) used/tone of oil

Minor

Findings In compliance: Yes: X No:

Objective evidence:

At FELDA Purun, FELDA Bukit Kepayang and FELDA Plantation Terapai 3, Quantity of active ingredient of rat bait used per Ha is available. However, the trending against time has yet to be established since barn owl rearing is still in a planning stage.

Criterion 4.6: Agrochemicals are used in a way that does not endanger health or the environment. There is no prophylactic use of pesticides, except in specific situations identified in national Best Practice guidelines. Where agrochemicals are used that are categorized as World Health Organization Type 1A or 1B, or are listed by the Stockholm or Rotterdam Conventions, growers are actively seeking to identify alternatives, and this is documented.

4.6.1 Written justification in Standard Operating Procedures (SOP) of all agrochemical use

Major

Findings In compliance: Yes: X No:

Objective evidence:

Bukit Kepayang CU continued to maintain SOP for agrochemical use is written in the Manual (e.g. Merumput di Kawasan Matang) taking consideration on occupational safety, environmental

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awareness and dosage.

Safe operating procedure is also available and communicated to all workers and settlers thru roll call or meeting. Meeting minute (21/1/2013 - Mesyuarat ahli jawatankuasa tanam semula sendiri) verification confirmed SOP is explained to the settlers. But no verification from Felda to ensure SOP is implemented by them (refer NCR issued under Indicator 4.1.2)

4.6.2 Pesticides selected for use are those officially registered under the Pesticides Act 1974 (Act 149) and the relevant provision (Section 53); and in accordance with USECHH Regulations (2000)

Major

Findings In compliance: Yes: X No:

Objective evidence:

It was confirmed at all site visited that pesticide used for field operation registered under the Pesticide Act 1974. Among the pesticide used are Glyphosate (Glyphosate Isopropylamine), Basta (Glufosate Ammonium) and Garlon ( Triclopyr Butoxyl Esthyl Ester).

4.6.3 Pesticides shall be stored in accordance to the Occupational Safety and Health Act 1994 (Act 514) and Regulations and Orders and Pesticides Act 1974 (Act 149) and Regulations

Major

Findings In compliance: Yes: No: X

Objective evidence:

Site visit to chemical stores was observed pesticides has stored in accordance to the Occupational Safety and Health Act 1994 (Act 514) and Regulations and Orders and Pesticides Act 1974 (Act 149) and Regulations. Chemical Safety Data sheet (CSDS) available at the point of use. Record of the purchase, storage and use had been properly maintained.

It was observed all ladang maintain good housekeeping.

4.6.4 All information regarding the chemicals and its usage, hazards, trade and generic names must be available in language understood by workers or explained carefully to them by a plantation management official at operating unit level

Major

Findings In compliance: Yes: X No:

Objective evidence:

Bukit Kepayang CU continued to maintain Agriculture Manual where all information regarding the chemicals and its usage hazards, trade and generic names in Malay and/or English language. Briefing was carried out to foreign worker on the application of the chemicals. An interview with Bangladesh and Indonesia workers was confirmed they are understood on the chemical usage and hazards associated to the chemicals.

4.6.5 Annual medical surveillance as per CHRA for plantation pesticide operators Major

Findings In compliance: Yes: X No:

Objective evidence:

Annual medical surveillance was conducted for pesticide operator as well as workers who expose to hazardous chemical such as laboratory operator at the mill. Sighted the medical report all of them are reported fit to work. Example at FELDA Purun, latest medical surveillance for agrochemicals operator was on 25/11/2011 by OHD – JKKP KES 127/669/1(387) and all rated fit according to the surveillance report.

4.6.6 No work with pesticides for confirmed pregnant and breast feeding women Major

Findings In compliance: Yes: X No:

Objective evidence:

It was confirmed through interview with workers, attended record and site visit, no work with pesticides for confirmed pregnant and breast feeding women.

4.6.7 Documentary evidence that use of chemical categorized as World Health Minor

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Organization Type 1A or 1B, or listed by the Stockholm or Rotterdam Conventions and paraquat, is reduced and/or eliminated. Adoption of suitable economic alternative to paraquat as suggested by the EB pending outcome of the RSPO study on IWM

Findings In compliance: Yes: X No:

Objective evidence:

Bukit Kepayang CU, paraquat is still in used for Voluntary Oil Palm Seedlings (VOPS) eradication. Assessment on the chemical inventory record shows its use was controlled and selective. At FELDA Purun, there’s only 60 lt of paraquat kept in the store at the point of visit. It was a vast reduction from previous practice which paraquat was used widely on VOPS.

4.6.8 Documented justification of any aerial application of agrochemicals. No aerial spraying unless approved by relevant authorities

Major

Findings In compliance: Yes: X No:

Objective evidence:

No evidence aerial spraying conducted in Bukit Kepayang CU.

4.6.9 Evidence of chemical residues in CPO testing, as requested and conducted by the buyers

Minor

Findings In compliance: Yes: X No:

Objective evidence:

As todate, no buyer requested for testing of chemical residues in CPO.

4.6.10 Records of pesticides use (including active ingredients used, area treated, amount applied per hectare and number of applications) are maintained for either minimum of 5 years or starting November 2007

Minor

Findings In compliance: Yes: X No:

Objective evidence:

Bukit Kepayang CU has maintain records of pesticides used per Ha. Among the information included was amount of active ingredients used monthly and type of pesticides. Example Glyphosate (Glyphosate Isopropylamine 41% ai at 1.936 ai/ha), Basta (Glufosate Ammonium 13.5% ai at 0.03 ai/ha) and Garlon ( Triclopyr Butoxyl Esthyl Ester 32.1% ai at 240 ai/ha).

Criterion 4.7: An occupational health and safety plan is documented, effectively communicated and implemented

4.7.1 Evidence of documented Occupational Safety Health (OSH) plan which is in compliance with OSH Act 1994 and Factory and Machinery Act 1967 (Act 139)

Major

Findings In compliance: Yes: No: X

Objective evidence:

Bukit Kepayang CU continued to adopt the FELDA Group’s Occupational Safety and Health (OSH) policy ( Dasar Keselamatan Dan Kesihatan Pekerjaan) . The policy was displayed at the notice board of admin office. Interview with the workers was confirmed that they are aware on the policy requirements.

Verify previous opportunities for improvement raised during stage 2 audit. The mill and Ladang has identified hazard & risk associated to their operation. Risk assessment record entitle “Pengenalpastian hazard, penilaian risiko dan penentuan kawalan” (hazard identification, risk assessment and determining control (HIRADC)) was available and covered all the activities of Bukit Kepayang CU. Example risk assessment record (HIRADC – FPI-L4/QOHSE 1.4 Pind. 1) in the mill latest reviewed dated 15 March 2013. OSH objective target & management program at the mill was established such as zero accident in the mill and external accident, OSH program – kempen keselamatan jalanraya & vehicle inspection and replace rotten platform.

Verify previous opportunities for improvement raised during stage 2 audit. FFB lorry paases through public road to the Bukit Kepayang mill was observed with safety net and railing to prevent falling of FFB.

An awareness and training programme related to OSH was available and implemented at FELDA Terapai 3, FELDA Purun & Bukit Kepayang Palm Oil Mill. Among the training conducted related to first aid, chemical management and emergency preparedness & response.

FELDA Plantation Terapai 3, Training on “Pengenalan Pertolongan cemas & CPR’ was attended by Plantation staffs dated 19 & 20 Nov 2012 and 29 & 30 April 2010. Nevertheless trained staffs

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have been transferred to other FELDA scheme recently. New staff has been appointed and will attend the necessary course on first quarter 2014. Lapses were observed at FELDA Bukit Kepayang,where no evidence that awareness & training programme related to OSH was conducted for 2012 & 2013. Major nonconformity was raised.

Verify previous opportunities for improvement raised during stage 2 audit, site visit at FELDA Terapai 3 was observed all the containers have appropriate labeled as per SOP. Also observed bridges at block 24 & 25 with railing and warning sign erected to indicate bridge ahead. Interview with sprayer was confirmed that pre-mix agrochemicals chemicals were prepared in the store prior used in the field.

The requirement to use the PPE was displayed at many strategic locations at the Ladang FELDA and mill. Verification on the PPE issuance log book show, FELDA management are committed to ensure their workers are provided with appropriate PPE to cover all potentially hazardous operation such as pesticide application, harvesting, chemical mixing and milling operation. Interview with chemical sprayer were confirmed that they received appropriate PPE such as goggle, respirator, rubber boots and apron.

Bukit Kepayang CU continued to maintain OSH committee member. The OSH committee organization chart was displayed on the strategic location at the admin notice board.

Safety committee meeting was conducted at least quarterly at each FELDA scheme, plantation and mill. Among the agenda discussed on accident case, un safe condition & OSH awareness programme. Meeting minute was established and maintained.

Site inspection at FELDA Bukit Kepayang was observed first aid equipment are made available in the office however the content not in accordance with First Aid Guideline where expired and oral medication was placed in the first aid box. Major nonconformity was raised.

Firefighting equipment was well maintained by each FELDA Scheme, Plantation and mill. Record of inspection & service was available.

4.7.2 Records should be kept of all accidents and periodically reviewed at quarterly intervals

Major

Findings In compliance: Yes: X No:

Objective evidence:

Accident report were maintained. Accident cases were reported during the OSH meeting quarterly. Sighted the JKKP 6 – accident report was submitted to DOSH accordingly.

At the mill, no accident reported since 2012 till October 2013.

4.7.3 Workers should be covered by accident insurance Major

Findings In compliance: Yes: X No:

Objective evidence:

All workers are covered with insurance policy provided by RHB Insurance Berhad (Foreign Worker Compensation Scheme Certificate of Insurance). Policy covers for the period of one year and found valid.

Criterion 4.8: All staffs, workers, smallholders and contractors are appropriately trained.

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

Major

Findings In compliance: Yes: X No:

Objective evidence:

Bukit Kepayang CU has continued to trained their staff and workers. Among the training conducted such as

Cara Kerja Pemanduan Selamat at FELDA Plantation Terapai 3 on 12 June 2013 for fertilizer tractor driver, FFB evacuation driver and office driver

Training 22 May 2013 by JKKP Pahang on the compliance to OSHA such as PPE, accident, non compliance to OSHA, attended by 57 employees of FELDA Plantation

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Terapai 3

Cara Kerja Pembajaan at FELDA Plantation Terapai 3 on 10 May 2013 field workers

Cara Kerja Mengumpan racun tikus at FELDA Plantation Terapai 3 on 18 April 2013.

Coaching on the RSPO implementation at FELDA Mayam, FELDA Bukit Kepayang by PSQM, Plantation sustainability & Quality Management Department, HQ on 6 & 8 Nov 2013

Verification on previous opportunities for improvement raised during stage 2 audit where continuous briefing on RSPO awareness to the workers was conducted and importance of PPE especially used of respirators were reminded to the sprayer.

Principle 5: Environmental Responsibility and Conservation of Natural Resources and Biodiversity

Criterion 5.1: Aspects of plantation and mill management, including replanting, that have environmental impacts are identified and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continuous improvement.

5.1.1 Documented aspects and impacts risk assessment that is periodically reviewed and updated

Major

Findings In compliance: Yes: X No:

Objective evidence:

Bukit Kepayang CU had continued to conduct the environmental aspects and impacts risk assessment for activities related to their operation. Among the activities assessed related to mill operation are chemical mixing, boiler operation, discharge of effluent discharge and smoke emission. While for estate operation, Pengenal pastian aspek dan impek (RSPO – P5/C5.1/5.1.1) was available, maintained and reviewed on 12 Sept 2013. Among the activity identified harvesting, fertilizer, diesel consumption, management of empty chemical containers. The environmental aspects & impacts assessment methodology was established to determine significant environmental issues related to Bukit Kepayang CU operation. Among the significant environmental issues such as smoke emission from boiler, effluent discharge from effluent treatment plant and generation of empty chemical container from water treatment plant. Verification of opportunities for improvement raised during stage 2 audit, Assessment of environmental aspect & impact evaluation record was revealed that evaluation was carried out in accordance with SOP and an improvement plan to mitigate the significant aspects was identified and implemented accordingly.

5.1.2 Environmental improvement plan to mitigate the negative impacts and promote the positive ones, is developed, implemented and monitored

Minor

Findings In compliance: Yes: X No:

Objective evidence:

Ladang Bukit Kepayang , FELDA Purun and FELDA Plantation Terapai 3 have constructed the chemical store complete with bund at chemical mixing area to avoid chemical spillage into monsoon drain.

FELDA Plantation Terapai 3 has also constructed bunding complete with oil trap surrounding diesel skid tank area. Site observation no trace of diesel spill on the floor.

It was also observed practice at Bukit Kepayang CU that empty fertilizer bag was collected and kept in the store.

Criterion 5.2: The status of rare, threatened or endangered species (ERTs) and highly conservation value habitats, if any, that exist in the plantation or that could be affected by plantation or mill management, shall be identified and their conservation taken into account in management plans and operations.

5.2.1 Identification and assessment of HCV habitats and protected areas within land holdings and attempt assessments of HCV habitats and protected areas surrounding landholdings

Major

Findings In compliance: Yes: X No:

Objective evidence:

FELDA Purun had identified and assessed the HCV habitat and protected areas on 14/2/2011. The assessment report was produced. Only two areas had been identified as HCV which are (i) Purun Forest Reserved (HCV 1) and (ii) Muslim Graveyard (HCV 6).

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FELDA Plantation Terapai 3 had identified and assessed the HCV and protected areas as stated in their action plan which were (i) Papai & Chini Forests Reserved, (ii) Mentanang River and (iii) water catchment (drinking water). Manager had discussed with Forestry Department on any issues related with Papai and Chini Forests Reserved such as on the effect of logging on the quality of Mentanang river.

5.2.2 Management plan for HCV habitats (including ERTs) and their conservation Major

Findings In compliance: Yes: X No:

Objective evidence:

FELDA Purun has established their own action plan 2013 that stated their monitoring program for HCVs area which are (i) Purun Forest Reserves and (ii) Muslim Graveyard. The plan of monitoring program for forest reserved area such as Identified conflict area, erected awareness signages, feedback from stakeholders, daily patrolling & report any raised issues to authority department. While for Muslim graveyard, FELDA Purun agreed to funded some donors through FELDA Purun Mosque Commmittee in order to improved Muslim graveyard on 16 July 2012. And there was no ERT species that found in the estate.

Verification of opportunities for improvement raised during stage 2 audit, FELDA Plantation Terapai 3 has also established their action plan for 2012. The action plan has been used until current since there was no significant changes by management. The monitoring report was continued recorded by the staff. The action plan stated their HCV areas such as boundary of forests reserved, Mentanang river & water catchment. The list of action taken were as followed erected awareness signages, daily patrolling at the estate boundary with authority department (PERHILITAN / Forestry Department), water sampling analysis & stakeholders feedback.

5.2.3 Evidence of a commitment to discourage any illegal or inappropriate hunting, fishing or collecting activities and developing responsible measures to resolve human-wildlife conflicts

Minor

Findings In compliance: Yes: X No:

Objective evidence:

Signage was observed around the estate during onsite audit to prohibit illegal hunting and fishing. Interviewed to the workers at the line sites and they understand the company policies.

FELDA Purun & FELDA Plantation Terapai 3 has fixing awareness signages on Biodiversity such as 'No hunting and No entering', buffer zone and boundary of forest reserved, to create awareness for staff, peneroka and outsiders. The estate has co-operate with PERHILITAN. FELDA Purun also manage for daily patrolling of estate boundary.

Figure 9. No Fishing signage erected by FELDA Plantation Terapai 3 near to the Mentanang river.

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Figure 8. 'No hunting' signage was erected by FELDA Plantation Terapai 3.

Criterion 5.3: Waste is reduced, recycled, re-used and disposed of in an environmentally and socially responsible manner.

5.3.1 Documented identification of all waste products and sources of pollution Major

Findings In compliance: Yes: X No:

Objective evidence:

Bukit Kepayang CU has identified all waste and sources of pollution resulting from mill and estate operation. SOP ‘Mengenalpasti dan menguruskan bahan buangan / MR 5.3/2009/ isu 1” was established & maintained . Among the waste which had been identified were general/domestic waste, scheduled waste, scrap metal, crop residue/biomass, fibre, shell, EFB and POME from the mill.

Site visit was observed Bukit Kepayang CU has continued to practice 3R i.e. reduced, recycle, re-used on waste management and disposed them off in an environmentally and socially responsible manner.

Figure 11. FELDA Plantation Terapai 3 had allocated some spaces for burying organic waste.

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Figure 12. New domestic landfill for domestic waste.

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

Minor

Findings In compliance: Yes: X No:

Objective evidence:

Bukit Kepayang CU has continued to implement the operational plan to reduce pollution such as used fertilizer bag sent to recycle contractor, empty chemical container reused to fill up pre mixing chemical, oil trap was available at diesel skid tank and chemical trap was available at chemical mixing area.

For domestic waste generated from linesite was disposed in the landfill. FELDA Plantation Terapai 3 has maintained ‘ Jadual Kutipan sampah tahun 2013” and ‘ Rekod – Buka dan Tutup lubang sampah 2012 & 2013”. The active landfill was open on 11 Oct 2013 .

5.3.3 Evidence that crop residues/biomass are recycled (Cross reference C 4.2) Minor

Findings In compliance: Yes: X No:

Objective evidence:

Crop residue / biomass from mill i.e. fibre and shell, continued to be used as fuel in the boiler while EFB and POME were sent to estate for mulching and land application.

Criterion 5.4: Efficiency of energy use and use of renewable energy is maximized.

5.4.1 Monitoring of renewable energy use per ton of CPO or palm product in the mill Minor

Findings In compliance: Yes: X No:

Objective evidence:

Monitoring of renewable energy (renewable energy/ ton CPO Processed) is available. For 2012, the Bukit Kepayang Palm Oil Mill reported average usage of renewal energy was 20210 kwh per tonne CPO while 2013 (jan till Oct 2013) was 7869. kwh per tonne CPO.

5.4.2 Monitoring of direct fossil fuel use per ton of CPO or kW per ton palm product in the mill (of FFB where the growers has no mill)

Minor

Findings In compliance: Yes: X No:

Objective evidence:

FELDA Plantation Terapai 3 , Monitoring of direct fossil fuel i.e diesel use per ton FFB for 2012 and 2013

Month /2012 Diesel / FFB production

Month /2013 Diesel / FFB production

Jan 0.44 Jan 0.34

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Feb 0.5 Feb 0.5

Mar 0.36 Mar 0.44

April 0.43 April 0.44

May 0.39 May 0.4

Jun 0.53 Jun 0.5

July 0.5 July 0.25

Aug 0.57 Aug 0.38

Sept 0.46 Sept 0.35

Oct 0.34 Oct 0.48

Nov 0.33 Nov -

Dec 0.28 Dec -

Criterion 5.5: Use of fire for waste disposal and for preparing land for replanting is avoided except in specific situations, as identified in the ASEAN Guidance or other regional best practice.

5.5.1 No evidence of open burning. Where controlled burning occurs, it is as prescribed by the Environmental Quality (Declared Activities) (Open Burning) Order 2003

Major

Findings In compliance: Yes: X No:

Objective evidence:

Bukit Kepayang CU has continued to implement Policy “Larangan Pembakaran Terbuka” dated 12 July 2011 approved by Executive Director of FELDA Plantation Sdn.Bhd.. Site visit at the field was observed signage “Dilarang Membakar’ and no evidence of open burning.

5.5.2 Previous crop should be felled/mowed down, chipped/shredded, windrowed or pulverized/ploughed and mulched.

Minor

Findings In compliance: Yes: X No:

Objective evidence:

No replanting activities at Bukit Kepayang CU. Nevertheless SOP entitle ‘Manual pengurusan Lestari: GAP 1.7 - Menebang dan Mencincang sawit’ was established for future reference.

5.5.3 No evidence of burning waste (including domestic waste) Minor

Findings In compliance: Yes: No: X

Objective evidence:

Site visit at FELDA Bukit Kepayang, traces of open burning was observed at workers hostel (Felda Teknoplant) and behind chemical store. Minor nonconformity was raised.

Criterion 5.6: Plans to reduce pollution and emissions, including greenhouse gases are developed, implemented and monitored.

5.6.1 Documented plans to mitigate all polluting activities (Cross reference C 5.1) Major

Findings In compliance: Yes: X No:

Objective evidence:

The documented plans to mitigate all polluting activities associated with mill and estate operation were available and record showed it was reviewed periodically. Among the planned actions developed were contracted bunding surrounding diesel skid tank complete with oil trap, bunding at chemical mixing area complete with trap, designated storage for chemical and empty chemical containers and shower room for chemical sprayers. Another improvement plan was aimed at emission reduction and fuel consumption reduction. (cross refer to C5.1)

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5.6.2 Plans are reviewed annually Minor

Findings In compliance: Yes: X No:

Objective evidence:

The environmental plan was reviewed annually and record of reviewed were maintained.

5.6.3 Monitor and reduce peat subsidence rate through water table management (Within ranges specified in C 4.3)

Minor

Findings In compliance: Yes: X No:

Objective evidence:

There was no peat soil area in the Bukit Kepayang CU. Therefore indicator 5.6.3 is not applicable.

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

Criterion 6.1: Aspects of plantation and mill management, including replanting, that have social impacts are identified in a participatory way and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored to demonstrate continuous improvement.

6.1.1 A documented social impact assessment including records of meetings Major

Findings In compliance: Yes: X No:

Objective evidence:

A documented social impact assessment (SIA) had been sighted at FELDA Purun, FELDA Plantation Terapai 3 and Bukit Kepayang Palm Oil Mill. The assessment was conducted on 20th September 2011 for FELDA Purun, 2 February 2011 for FELDA Plantation Terapai 3 and 10 November 2013 (revised) for Bukit Kepayang Palm Oil Mill.

Verification of opportunities for improvement raised during stage 2 audit, the social impact survey has included the issue of smoke emission from boiler and generally no negative comment from nearby communities.

6.1.2 Evidence that the assessment has been done with the participation of affected parties

Minor

Findings In compliance: Yes: X No:

Objective evidence:

The SIA had been conducted based on a questionnaires form formulated by FELDA HQ.

Participation of affected parties such as Police, Fire brigade (BOMBA), Hospital, Department of aboriginal people (JHEOA), Village head, nearest private clinic, Primary school, Department of Occupational, Safety and Health (DOSH), Forestry Department, mill machine suppliers, Department of Environment (DOE), were evident. Meeting minutes and their attendant were maintained.

6.1.3 A timetable with the responsibilities for mitigation and monitoring is reviewed and updated as necessary

Minor

Findings In compliance: Yes: X No:

Objective evidence:

The managament and action plan for HCV and SIA were updated as necessary if needed by estates, palm oil mill and plantation managers/manager representatives. Long term monitoring on the action plan was carried out since 2011 until current by the visited auditee Any updated was depend on the management decision during management minute meeting, stakeholders feedback and grievances book.

Criterion 6.2: There are open and transparent methods for communication and consultation between growers and/or millers, local communities and other affected or interested parties.

6.2.1 Documented consultation and communication procedures Major

Findings In compliance: Yes: X No:

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Objective evidence:

Consultation and communication procedures, document no. FPI/L2/QOHSE-6.0 entitled Manual Prosedur Komunikasi, Penglibatan dan Rundingan ( Communication, Participation and

Consultation) for communicating with external communities and other stakeholders as well as internal communities were in place.

Implementation of the procedure was seen at FELDA Purun, FELDA Plantation Terapai 3 and Bukit Kepayang Palm Oil Mill.

Figure 9. Consultation between representatives of settlers and chairman of gender committee (GPW) with

assessors at the FELDA Purun.

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

Minor

Findings In compliance: Yes: X No:

Objective evidence:

A management official at the operating unit level had been nominated to be responsible on issues related to consultations and communication between growers and /or millers with local communities and affected or interested parties. They were Felda Purun's manager, Felda Plantation Terapai manager & Bukit Kepayang mill manager

6.2.3 Maintenance of a list of stakeholders, records of all communication and records of actions taken in response to input from stakeholders

Minor

Findings In compliance: Yes: X No:

Objective evidence:

List of stakeholders of FELDA Purun, FELDA Plantation Terapai 3 and Bukit Kepayang Palm Oil Mill were maintained. Among the identified stakeholders are Police, Fire brigade (BOMBA), Hospital, Department of aboriginal people (JHEOA), Village head, nearest private clinic, Primary school, Department of Occupational, Safety and Health (DOSH), Forestry Department, mill machine suppliers, Department of Environment (DOE) and etc.

Felda Purun has recorded communications and actions taken in the grievances book. Among the issue recorded in Buku Isu & Aduan about old fences at the muslim graveyard. On 5 March 2013, Management of Felda Purun and settlers agreed to collect donation from all settlers and FELDA Purun staffs to repair the fences. Felda Purun has also provide some fund to improve Muslim graveyard. On 16 April 2013, the Muslim graveyard fences were repaired.

Among the issues were recorded in the grievance book in FELDA Plantation Terapai 3 are housing repairs. Example: Bangladesh worker made a complaint on 30 October 2013 that filament bulb in his room at the H quarters burn out. The Plantation supervisor had conducted the inspection and the filament bulb has been replaced on 31 October 2013.

Mill has provided a complaint box in front of admin office. The recorded complaints more to housing repairs such as roofing leaking, replacement of lighting and etc action were taken accordingly.

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Criterion 6.3: There is a mutually agreed and documented system for dealing with complaints and grievances, which is implemented and accepted by all parties.

6.3.1 Documentation of the process by which a dispute was resolved and the outcome Major

Findings In compliance: Yes: X No:

Objective evidence:

As found in the last assessment, there was documentation of the process by which a dispute was recorded as well as action taken to overcome it. There was evidence that the system was open to all aggrieved parties – internal communities as well as neighbouring communities and the general public.

The documentation of the process was established by FELDA HQ for all estates, plantation and factory named 'Manual Lestari 1A - 3.4 Prosedur Komunikasi, Penglibatan dan Rundingan'. The complaint forms was available at mill, estate and plantation for any interested party to register their complaints. Or they can verbally complaint to anyone in the main office, manager or chairman of gender committee related to social issues. From the last assessment until this surveillance audit, there was no dispute cases reported to the Bukit Kepayang mill, Terapai 3 Plantation and Felda Purun except complaints related to housing repairs.

6.3.2 The system resolves disputes in an effective, timely and appropriate manner Minor

Findings In compliance: Yes: X No:

Objective evidence:

The system resolved complaints/grievances in an effective, timely and appropriate manner. If

the grievances cannot solved within 7-14 days and will be extended until the cases solved as written in the manual.

Complaints or grievances from contractors, staffs and workers are usually made through their mandores or assistant managers. If the complaints could not be resolved, then, these will be brought up to the attention of the manager for his decision. Complaints on housing repairs are usually entered into a Complaint Book to be acted by the felda's mill, estate and plantation administration. Example: Street lamp at the Felda Plantation Terapai 3 burn out on 5 November 2013. The Plantation supervisor had made a report to Tenaga Nasional Berhad (TNB) on 6 November 2013 to do inspection and replacement of the bulb.

6.3.3 The system is open to any affected parties Minor

Findings In compliance: Yes: X No:

Objective evidence:

There was evidence that the system was open to all aggrieved parties – internal stakeholder and external stakeholder

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Figure 10. Grievances book at the FELDA Plantation Terapai 3.

Figure 11. Hotline number was displayed at the FELDA Plantation Terapai 3 noticeboard

Criterion 6.4: Any negotiations concerning compensation for loss of legal or customary rights are dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions.

6.4.1 Establishment of a procedure for identifying legal and customary rights and a procedure for identifying people entitled to compensation

Major

Findings In compliance: Yes: X No:

Objective evidence:

There was specific procedure in place for identifying legal and customary rights and for identifying people entitled to compensation. It is continued to be in use.

'Penilaian Pengambilan Tanah' by Jabatan Penilaian and Perkhidmatan Harta , Kementerian Kewangan Malaysia was available and used as a guide for compensation to land use.

6.4.2 A procedure for calculating and distributing fair compensation (monetary or otherwise) is established and implemented. This takes into account gender differences in the power to claim rights, ownership and access to land; and long-established communities; differences in ethnic groups’ proof of legal versus communal ownership of land.

Minor

Findings In compliance: Yes: X No:

Objective evidence:

As of to-date, there had been no claim for compensation made against Bukit Kepayang Certification Unit by the Orang Asli, local communities and settlers.

6.4.3 The process and outcome of any compensation claims is documented and made publicly available

Minor

Findings In compliance: Yes: X No:

Objective evidence:

As of to-date, there had been no claim for compensation.

Criterion 6.5: Pay and conditions for employees of contractors always meet at least legal or industry minimum standards and are sufficient to provide decent living wages.

6.5.1 Documented of pay and conditions Major

Findings In compliance: Yes: X No:

Objective evidence:

Contracts of pay and conditions were documented and in compliance with the law. Pay and conditions and contracts were verified through interview and record verification at FELDA Purun, FELDA Plantation Terapai 3 and Bukit Kepayang Palm Oil Mill.

Sample of payslip statement of workers from Bangladesh, Nepal and Indonesian as well as local worker was verified by auditor.

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

Minor

Findings In compliance: Yes: No: X

Objective evidence:

An interview with local and foreign workers at the FELDA Plantation Terapai 3, contract of employment detailing payments and conditions of employment was not available for worker from Bangladesh, Indonesian and Nepal. A Minor Nonconformity was raised to FELDA Plantation

Terapai 3.

Figure 12. Sample of contract of employment book for foreign workers at the FELDA Plantation Terapai 3.

Staff at Bukit Kepayang Palm Oil Mill was provided with contract of employment, book of Regulation and Code of Ethics for FELDA employee (Syarat-syarat perkhidmatan petugas syarikat Kumpulan FELDA dan Kod Etika & Tatalaku petugas Syarikat kumpulan FELDA)

6.5.3 Growers and millers provide adequate housing, water supplies, medical, educational and welfare amenities in accordance with Workers’ Minimum Standard of Housing and Amenities Act 1990 (Act 446) or above, where no such public facilities are available or accessible (not applicable to smallholders)

Minor

Findings In compliance: Yes: X No:

Objective evidence:

Mill and all Ladang visited showed that FELDA had provided decent houses and other facilities meeting the Workers’ Minimum Standard of Housing and Amenities Act 1990 to their employees and contract workers. Among the facilities provided area soccer court, D'Mart shops, mosque, clinic, petrol station, primary and secondary school and quarters for workers and staffs.

Figure 13. Soccer court in the FELDA Purun.

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Figure 14. D'Mart shop located at FELDA Purun.

Figure 15. Workers quarters at the FELDA Plantation Terapai 3.

Figure 16. Mosque at the FELDA Plantation Terapai 3.

Staffs and workers at the Bukit Kepayang mill and Felda Plantation Terapai 3 were provided with basic facilities such as quarters, medical fund, electricity, shops, etc. Water supply was provided with free of charge to the staffs and workers houses. However, they need to pay bill of electricity to TNB. Allocation of medical fund were provided to staff and workers as listed below:

i) staff (married) = RM500/person/year

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ii) staff (single) = RM250/person/year

iii) General worker (TKA) = RM200/person/year

Criterion 6.6: The employer respects the right of all personnel to form and join trade unions of their choice and to bargain collectively. Where the right to freedom of association and collective bargaining are restricted under law, the employer facilitates parallel means of independent and free association and bargaining for all such personnel.

6.6.1 Documented minutes of meetings with main trade unions or workers representatives

Major

Findings In compliance: Yes: X No:

Objective evidence:

Bukit Kepayang Palm Oil Mill's staffs and workers have confirmed that they were aware of their right to join the union i.e.'Kesatuan Pekerja-pekerja Felda Palm Industries Sdn Bhd (Semenanjung)'.The union has met about 2 times in 2013. They had discussed and recorded the meeting minute between management and workers representatives.

While, there was no union at the FELDA Purun & FELDA Plantation Terapai 3. However, the staffs and workers knew that there could form/join trade/workers union.

Figure 17. Booklet of agreement between FELDA and Staff Union (Peninsular Malaysia).

6.6.2 A published statement in local languages recognizing freedom of association Minor

Findings In compliance: Yes: X No:

Objective evidence:

An official published statement entitled Polisi Kebebasan Menganggotai Khidmat Sukarela was

available and maintained. It was displayed on the admin office notice board

Interviews with FELDA staffs, they were encouraged by management to become members of Kesatuan Pekerja-pekerja FELDA (Staff Association).

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Figure 18. Policies including freedom of association in the noticeboard that placed in front of the FELDA Purun

office.

Criterion 6.7: Children are not employed or exploited. Work by children is acceptable on family farms, under adult supervision, and when not interfering with education programmes. Children are not exposed to hazardous working conditions.

6.7.1 Documented evidence that minimum age requirement is met Major

Findings In compliance: Yes: X No:

Objective evidence:

Bukit Kepayang CU has continued to comply with Policy statement entitled 'Polisi Pekerja-pekerja Kanak-kanak' prohibiting employment of children below 17 years old.

The assessment team has verified employment card and copies of passports at Bukit Kepayang Palm Oil Mill and FELDA Plantation Terapai 3 have confirmed that there were no records of persons under age of eighteen, the minimum working age under Malaysian Labor Laws (Am. Act A238).

Criterion 6.8: Any form of discrimination based on race, caste, national origin, religion, disability, gender, sexual orientation union membership, political affiliation or age is prohibited.

6.8.1 A publicly available equal opportunities policy Major

Findings In compliance: Yes: X No:

Objective evidence:

The policy of equal opportunities policy entitled 'Polisi Kesetaraan Peluang' was displayed at the ladang offices noticeboard. The policy stated clearly the equal rights to all employees irrespective of race, caste, nationality, religion, gender, union member and disability. It was also explained to foreign workers and found understood by them.

6.8.2 Evidence that employees and groups including migrant workers have not been discriminated against

Minor

Findings In compliance: Yes: X No:

Objective evidence:

An interview with Indonesian workers, mill female staff and local worker there was no evidence of discrimination. Workers were treated equally and they also satisfied with the job opportunities.

Criterion 6.9: A policy to prevent sexual harassment and all other forms of violence against women and to protect their reproductive rights is developed and applied.

6.9.1 A policy on sexual harassment and violence and records of implementation Major

Findings In compliance: Yes: X No:

Objective evidence:

Bukit Kepayang CU has maintained the Policy entitled 'Polisi gangguan seksual dan keganasan' . It is made available to employees in language they understand i.e. written in Malay language. A gender committee or Jawatankuasa Hal Bergerak Wanita was established whose responsibilities

among other was look into gender issues (especially matters related to sexual harassment). The committee has meet 4 times in 2013 dated 7 February 2013, 23 April 2013, 12 July 2013 & 18 October 2013.

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Figure 19. Gender Committee was established at the Bukit Kepayang POM.

6.9.2 A specific grievance mechanism is established Minor

Findings In compliance: Yes: X No:

Objective evidence:

A specific grievance mechanism to handle issued related to sexual harassment and violence had been established at the Bukit Kepayang CU. Head of village and gender committee whose responsible among others was to look into gender issues had been established. This was confirmed during consultations with female employees at the FELDA Purun, FELDA Plantation Terapai 3 & Bukit Kepayang POM. As to-date no recorded cases on sexual harassment and violence made by female workers and staffs.

Criterion 6.10: Growers and mills deal fairly and transparently with smallholders and other local businesses.

6.10.1 Pricing mechanisms for FFB and inputs/services shall be documented Major

Findings In compliance: Yes: X No:

Objective evidence:

Price mechanism for FFB was stated in the FELDA Manual Procedure - 'FPI/L2/19-01 - Pembelian BTS'. Generally, FELDA was referred the FFB prices at the MPOB website. (http://bepi.mpob.gov.my/index.php/statistics/price/daily.html)

6.10.2 Current and past prices paid for FFB shall be publicly available Minor

Findings In compliance: Yes: X No:

Objective evidence:

Prices paid for FFB was displayed in front of the entrance gate while previous price of FFB displayed at the weighbridge office of Kilang Sawit Bukit Kepayang.

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Figure 20. Price paid for FFB was displayed in front of Bukit Kepayang mill.

6.10.3 Evidence that all parties understand the contractual agreements they enter into and that contracts are fair, legal and transparent

Minor

Findings In compliance: Yes: X No:

Objective evidence:

An interviews with contractors i.e. cleaning FFB at the loading ramp and packing bunch of ash and canteen tenant of Bukit Kepayang POM, they were understand and agreed the term in the agreement. They have confirmed that the business with FELDA were fair and transparent. While for smallholders, they were happy on the FFB trading with the Bukit Kepayang POM.

6.10.4 Agreed payments shall be made in a timely manner Minor

Findings In compliance: Yes: X No:

Objective evidence:

All payments were made in a timely manner. Payment to contractors was made by cheque which was issued before every 10th of the month.

Criterion 6.11: Growers and millers contribute to local sustainable development wherever appropriate.

6.11.1 Demonstrable contributions to local development that are based on the results of consultation with local communities

Minor

Findings In compliance: Yes: X No:

Objective evidence:

FELDA Purun has contributed to local development based on their monthly meeting with gender committee (GPW), JKKK, BELIA and GENERASI KE-2) such as erected fence at the muslim graveyard, provide transport (bus/van) for settler's children going to school, assisted 2nd Generation of Felda on applying fund from Felda to build their first house. For FELDA Plantation Terapai 3, they have organised annual programs for their staffs and workers including foreign workers such as sports day, celebration of Labour Day 2013 and expedition program to Rinjani, Lombok, Indonesia. While, Bukit Kepayang mill gets all suggestion/complaints/grievances through their yearly meeting with Dayabudi Family Club and Meeting of Head Department (Mesyuarat Ketua Bahagian). Bukit Kepayang mill has offered vacant job for local communities, provide van for students of Tabika Kemas Felda Mayam for their visiting program to elephant sanctuary at Kuala Gandah, Lanchang.

Principle 7: Responsible Development of New Plantings

This whole Principle is not applicable to this assessment as there are no new plantings. The company is only involved in re-planting programme after felling of old palms and there is no plan for expansion.

Principle 8: Commitment to Continuous Improvement in Key Areas of Activity

Criterion 8.1: Growers and millers regularly monitor and review their activities and develop and implement

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action plans that allow demonstrable continuous improvement in key operations.

8.1.1 Minimize use of certain pesticides (C 4.6) Major

Findings In compliance: Yes: X No:

Objective evidence:

Commitment to minimize the use of certain pesticide by implementing IPM. Planting beneficial plant such as Tunera, Cassia and Antigonon were implemented accordingly. Chemical inventory record show low quantity of chemical purchase and consumption.

8.1.2 Environmental impacts (C 5.1) Major

Findings In compliance: Yes: X No:

Objective evidence:

The mill had installed Continuous Emission Monitoring System (CEMS) where the smoke emission result was transmitted to DOE Office. Chemical mixing area, chemical store, empty chemical store was constructed at designated area as to minimize pollution to environment.

8.1.3 Maximizing recycling and minimizing waste or by-products generation Major

Findings In compliance: Yes: X No:

Objective evidence:

Commitment to zero waste, use of by-products such as EFB and POME in the fields and also increasing the awareness of workers on 3R’s initiatives.

8.1.4 Pollution prevention plans (C 5.6) Major

Findings In compliance: Yes: X No:

Objective evidence:

Pollution prevention plan is available and been reviewed annually for the mill and estates. Inspection on site show that the pollution prevention plan have been carried out, such as the secondary containment at chemical mixing area, oil trap at diesel skid tank and workshop. To conduct periodically inspection surrounding Effluent treatment plant area to ensure no effluent pipe / drainage leaking into public drain.

8.1.5 Social impacts (C 6.1) Major

Findings In compliance: Yes: X No:

Objective evidence:

Bukit Kepayang CU has implemented continual improvement for social impacts such as revising the SIA every 5 years and annual meeting with Bukit Kepayang mill's gender committee (GPW), Head of village (JKKK) & Youth Committee (BELIA). Any complaints/grievances report from their internal (staffs & workers) and external stakeholders (contractors, villagers & orang asli) necessary action taken by management of mill, estate and plantation.

8.1.6 A mechanism to capture the performance and expenditure in social and environmental aspects

Minor

Findings In compliance: Yes: X No:

Objective evidence:

Bukit Kepayang CU has capture the expenditure in social and environmental aspects in the annual and five year budget.

Module E: CPO Mills : Mass Balance

Module E.1: Documented Procedures

Criterion E.1.1: The facility shall have written procedures and/or work instructions to ensure the implementation of all the elements specified in these requirements.

E.1.1.a Complete and up to date procedures covering the implementation of all the elements in these requirements

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Findings In compliance: Yes: X No:

Objective evidence:

Procedure of handling Mass Balance materials was made available at Kepayang Palm Oil Mill. This includes the method of calculating incoming and outgoing products.

D.1.1.b The name of the person having overall responsibility for and authority over the implementation of these requirements and compliance with all applicable requirements

Verifiers and guidance:

This person shall be able to demonstrate awareness of the facilities procedures for the implementation of this standard.

Findings In compliance: Yes: X No:

Objective evidence:

The Mill Manager is the appointed person to have overall responsibility and based on interview, he is able to demonstrate awareness to the facilities procedures for the implementation of the standard.

Criterion E.1.2: The facility shall have documented procedures for receiving and processing certified and non-certified FFBs.

Findings In compliance: Yes: X No:

Objective evidence:

Mechanism for receiving, processing FFB and dispatching CPO & PK is adequately addressed in the operating unit’s procedure.

Module E.2: Purchasing and Goods In

Criterion E.2.1: The facility shall verify and document the volumes of certified and non-certified FFBs received.

Findings In compliance: Yes: X No:

Objective evidence:

All incoming FFB (certified and non-certified) transported by trucks or tractors were accompanied by delivery notes which have the information of field number, number of bunches and drivers’ name. The mill would then record the weight of the FFB obtained from the weighing bridge reading. This information was updated in a record book and computer system on daily basis.

Criterion E.2.2: The facility shall inform the CB immediately if there is a projected overproduction.

Findings In compliance: Yes: X No:

Objective evidence:

The total of CPO and PK produced for the period under review did not exceed the projection.

Module E.3: Record Keeping

Criterion E.3.1: The facility shall maintain accurate, complete, up-to-date and accessible records and reports covering all aspects of these requirements.

Findings In compliance: Yes: No: X

Objective evidence:

Some of the records were not clear and accurate. A non-conformity report was raised against this issue. Details of non-conformity are stated in NCR # VS 02.

Criterion E.3.2: Retention times for all records and reports shall be at least five (5) years.

Findings In compliance: Yes: X No:

Objective evidence:

This requirement has been addressed in the company’s procedure.

Criterion E.3.3a: The facility shall record and balance all receipts of RSPO certified FFB and deliveries of RSPO certified CPO, PKO and palm kernel meal on a three-monthly basis.

Findings In compliance: Yes: X No:

Objective evidence:

Records were updated on daily basis through a format called “Laporan Daily Figures ISCC|RSPO (BTS, CPO, Kernel)”.

Criterion E.3.3b: All volumes of palm oil and palm kernel oil that are delivered are deducted from the material accounting system according to conversion ratios stated by RSPO.

Findings In compliance: Yes: X No:

Objective evidence:

Production volume of certified MB CPO and PK was calculated based on daily ratio of certified and non-certified FFB and the daily OER.

Criterion E.3.3c: The facility can only deliver mass balance sales from a positive stock. However, a facility is

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allowed to sell short

Findings In compliance: Yes: X No:

Objective evidence:

All sales of MB CPO & PK were from positive stock.

Criterion E.3.4: The following trade names should be used and specified in relevant documents, e.g. purchase and sales contracts e.g. *product name*/MB or Mass balance. The supply chain model used should be clearly indicated.

Findings In compliance: Yes: X No:

Objective evidence:

The model used (i.e. MB) is stated in the accompanying dispatch documents such as delivery note and weighbridge ticket.

Criterion E.3.5: In cases where a mill outsources activities to an independent palm kernel crush, the crush still falls under the responsibility of the mill and does not need to be separately certified. The mill has to ensure that the crush is covered through a signed and enforced agreement.

Findings In compliance: Yes: X No:

Objective evidence:

No outsource activity.

Module E.4: Sales and Good Out

Criterion E.4.1: The facility shall ensure that all sales invoices issued for RSPO certified products delivered include the following information:

a) The name and address of the buyer

b) The date on which the invoice was issued

c) A description of the product, including the applicable supply chain model (Segregated)

d) The quantity of the products delivered

e) Reference to related transport documentation

Findings In compliance: Yes: X No:

Objective evidence:

All the required information was available in the sales invoice.

Module E.5: Training

Criterion E.6.1: The facility shall provide the training for all the staff as required to implement the requirements of the Supply Chain Certification System.

Findings In compliance: Yes: X No:

Objective evidence:

Training of Supply Chain has been conducted to the mill personnel by its Sustainability Department from Felda Headquarter. Record of attendance was kept onsite.

Module E.6: Claims

Criterion D.7.1: The facility shall only make claims regarding the use of or support of RSPO certified palm oil that are in compliance with the RSPO Rules for Communication and Claims.

Findings In compliance: Yes: X No:

Objective evidence:

Bukit Kepayang CU did not use the RSPO Trademark for its certified product sold. Nonetheless, the person in-charge is aware about complying the RSPO Rules and Communication and Claims if they have the intention to make claim.

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Attachment 6

SURVEILLANCE ASSESSMENT 2013 DETAIL OF NON-CONFORMITY AND CORRECTIVE ACTIONS TAKEN

P & C Indicator

Specification Major/Minor

Detail Non-conformances Corrective Action Taken Verification by Assessor

RSPO P&C I 4.7.1

Major

Inadequate evidence of compliance against OSHA Act 1994 at Ladang Bukit Kepayang i- Inadequate evidence of workers training

programme was carried in 2012 & 2013 ii- Expired and oral medicine placed in the

First aid box at Felda Tekno plant admin office

iii-No evidence workplace inspection was carried out

i. Training programme for 2014 was established. Training was carried out as per programme.

ii. First aid box was purchased and placed at Felda Tekno plant admin office. The content of medicine as per First aid box guidelines

iii. Work place inspection was carried out accordingly.

Closed

Photograph and copy of document i.e.training record, purchase document & inspection record was submitted to auditor i.Training programme for 2014 was established. Relevant training was carried out. ii.First aid box was purchased and placed at Felda Tekno plant admin office. The content of medicine as per First aid box guidelines iii.Work place inspection was carried out by the officer incharge.

RSPO P&C I 2.1.1

Major Inadequate evidence of compliance with legal requirement at Bukit Kepayang mill : Syarat 16 of Jadual Pematuhan Kilang 004381 of Environmental Quality ((Prescribed Premise)(Crude Palm Oil)) Regulations 1978

1. The mill has purchased flowmeters to monitor flow rate of influent & effluent discharge.

2. To maintain log book to record a. Inffluent & effluent discharge b. Chemical usage (if any) c. Breakdown (if any) d. Maintenance activities

Closed

Copy of log book was submitted to auditor 1) The mill has purchased flowmeters to monitor flow rate of influent & effluent discharge. 2) Verified record related to

e. Inffluent & effluent discharge f. Chemical usage (if any) g. Breakdown (if any) h. Maintenance activities

RSPO SCC E 3.1

Major

Found inaccuracy of calculation in the record and balance document. There were a few calculations in the “Laporan Daily Figures ISCC|RSPO (BTS, CPO, Kernel” found to be inaccurate such as:

To ensure consistency, mill personnel/Executive to check quantity of CPO recorded in the delivery note and data recorded in the MPR system.

Closed

The mill Executive to check quantity of CPO recorded in the delivery note and data recorded in the MPR system.

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i) figure of RSPO certified CPO in the accounting system has a difference about 10 mt with the Delivery Note

ii) dispatch records of RSPO certified CPO on 1st to 8th November 2013 was not captured in the accounting system

iii) to-date amount recorded in the accounting system was not tally

iv) the source of material claimed for Book and Claim was not clear.

Copy of document were provided to the auditor

Copy of document were provided to the auditor

RSPO P&C I 5.1.2

Minor

1) Bukit Kepayang Certification unit has established an operational procedure to manage identified wastes in an environmentally and socially manner however said procedure was not adequately implemented. Site inspection at FELDA Bukit Kepayang was observed empty container were not properly stored and record.

2) Environmental improvement plan was not evident. FELDA Bukit Kepayang - Environmental improvement plan was not evident

1) To store and establish record of empty chemical container

2) To establish environmental improvement plan

Open Implementation will be verified in the next audit

RSPO P&C I 5.5.3

Minor Site inspection was observed traces of burning waste at Ladang Bukit Kepayang, workers’ hostel, behind chemical store

To install ‘No Open Burning’ signage at strategic area and conduct briefing to workers

Open Implementation will be verified in the next audit

RSPO P&C I 4.1.2

Minor

Some monitoring records on the implementation of Standard Operating Procedure (SOP) were not available. Monitoring records on SOP implementation by the settlers (which are not under Technoplant) such as (but not limited to) type of PPE used, medical surveillance of chemical spraying operators and type of agrichemicals used.

To conduct briefing to settler (which are not under Technoplant) on the estate operation based on the established SOP and maintain necessary records

Open Implementation will be verified in the next audit

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RSPO P&C I 2.2.3

Minor Boundary stones along perimeter adjacent to forest reserved was not being located and visibly maintained. Boundary stones between FELDA Plantation Terapai 3 (PM92A) and Chini Forest Reserved was not being located and visibly maintained

To submit application to Wilayah Office & HQ to relocate the boundary stone between FELDA Plantation Terapai 3 (PM92A) and Chini Forest Reserved

Open Implementation will be verified in the next audit

RSPO P&C I 6.5.2

Minor

Contracts of employment detailing payments and conditions of employment was not available for certain foreign workers i.e. Bangladesh, Indonesia & Nepal. Consultation with workers at FELDA Plantation Terapai 3 on contract of employment & payslip statement, it was found that they did not understand the detail of contract agreement and payments.

To keep copy of contracts of employment in the FELDA Plantation Terapai 3 admin office. To conduct briefing to workers on the conditions of employment and detailing payments

Open Implementation will be verified in the next audit

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STAGE 2 MAIN ASSESSMENT 2011 VERIFICATION OF NON-CONFORMITY AND CORRECTIVE ACTIONS TAKEN

P & C,

Indicators Classification Major / Minor

Detail Non conformance Corrective Action Taken Verification by Assessor

4.3.1 Minor It was observed that at Felda Terapai 3, Block 6, spraying of braken on slope had been carried out and there was evidence of landslides/soil erosion. At Felda Terapai 3, Block 23 and at Felda Purun blanket spraying on some blocks were also observed.

Frond arrangement had been corrected. Annual training program regarding harvesting and frond cutting had been conducted Side drain has been constructed. The issue of spraying of bracken on slopes and conservation of terraces not constructed had not been addressed.

Training planned for April 2012 and effectiveness of training had yet to be assessed during next audit. The issue of spraying bracken and conservation terraces to be followed up during nest audit. Status of NCR: Closed for those items in black font but open for item highlighted in red italic font. Verification during ASA 2013: Site visit and interview with relevant person in-charge was confirm there are no issue of spraying bracken and conservation terraces not constructed.

4.5.2 Minor The monitoring extent of IPM implementation for rat control using barn owl were not implemented.

Monitoring record of barn owl had been carried out and request for additional new barn owl nest had been made.

Evidences of correction taken were found acceptable. Status of NCR : Closed. Verification during ASA 2013: Verify the implementation IPM i.e new.barn owl boxes is in progress

4.7.1 i Major The FELDA Terapai 3 Field Supervisor could not show possession of a First Aid box on worksite.

First Aid kit issued to workers. Annual First Aid training on usage will be given to increase awareness and understanding among workers.

Training plan and relevant record submitted were found acceptable. To verify that the said training had been conducted. Status of NCR: Closed. Verification during ASA 2013:

Training on first aid was conducted on 19 & 20 Nov 2012

5.2.1 Major There was no consultation record with District Forest Officer (Chini

Have consulted with the relevant

District Forest Officer (Chini The record of consultation was sighted and implementation of the action plans will be verified

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Forest Reserve) and aborigine stakeholders at Kampung Orang Asli Bukit Rok bordering with Felda Bukit Kepayang

Forest Reserve) and aborigine stakeholders at Kampung Orang Asli Bukit Rok bordering with Felda Bukit Kepayang dated on 19 January 2012 and 11 January 2012 respectively.

in the next audit. Status of NCR: Closed Verification during ASA 2013:

Action plan was carried accordingly

5.2.2 Major It was found that there was no management plan developed for Bukit Batu and swamp areas at Felda Plantation Terapai 3, Orang Asli village at Kg Durian Kuning and Kg Ibam at Felda Mayam and Felda Bukit Kepayang.

Have consulted and discussed with respective schemes and project. Refer to management plan. 1. Bukit Batu and swamp areas (Paya

Terapai) for Felda Plantation Terapai 3 (see 13a, 13b, 13c )

2. Kg Durian Kuning for Felda Mayam (see 14a)

3. Kg Ibam for Felda Bkt. Kepayang (see 15a)

The reviewed management plan on 11 January 2012 has been submitted to the auditor. Therefore, the additional Management Plan for being inadequate has been addressed except for Bukit Batu that requires on-site verification to be done during the next annual surveillance audit. The record of implementation of the management plan will be verified in the next audit. Status of NCR: Closed Verification during ASA 2013:

Site verification was confirmed action taken is satisfactory.

5.3.1 Major The FELDA Terapai 3 waste generation was not in accordance to EQA (Scheduled Wastes) Regulations 2005.

Inventory record had been updated, scheduled waste labelled, triple rinse training conducted and annual training on handling waste will be given to workers.

Relevant records and photographic evidences submitted were found adequate.

Status of NCR: Closed Verification during ASA 2013:

Scheduled waste management as per EQ(Scheduled Wastes) Regulations 2005

5.3.2 Minor There is no evidence on implementation of empty pesticide container rinsing at Ladang

Training had been done and record of empty container had been updated.

Records submitted were found adequate. Status of NCR: Closed

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FELDA Mayam.

Verification during ASA 2013:

Interview and record assessment was confirmed triple rinsing was practiced.

6.5.3 Major Housing condition for the contractor’s four Indonesian workers living in a 2-year old wooden hut built just outside the mill processing area was found to be inadequate.

Legal house had been demolished and letter of order to demolish had been given to Contractor. Contractor had agreed to the letter.

Records submitted were found adequate. Status of NCR: Closed Verification during ASA 2013:

Site visit was confirmed house provided to the workers is in accordance with Minimum Standard of Housing and Amenities Act 1990.