Public Summary Information - RSPO · PT Pejabat Tanah (Coding for Pahang Land Office) SOP Standard Operating Procedures Sdn Bhd Sendirian Berhad ... yr Year Annual Surveillance Report

SGS RSPO

(Principles & Criteria)

Doc. Number: GP 7003A

Doc. Version date: 01 January 2013

Page: 1 of 63

Public Summary Information

Project Nr: MY01910

Certificate Nr: SGS-RSPO/PM-00514

Validity Period:

27 April 2010 – 26 April 2015

Report Ref #: MY01910 Surveillance 03 Evaluation

Client: Carotino Sdn Bhd

RSPO membership #: 2-0029-06-000-00

Web Page: www.carotino.com

Address:

Head office:

Unit 30-08, Mail Box 238, Menara Landmark, No.12, Jalan Ngee Heng, 80000, Johor Bahru, Johor

Contact:

Mr Seow Chee Chiang

Estate Department/Sustainability Manager Tel: +607-223 1633 Email: [email protected]

Country: Malaysia

Plantation Unit being Evaluated

Carotino Sdn Bhd

Total Plantation Area 10,243 ha

Company Contact Person:

Mr Seow Chee Chiang

Estate Department/Sustainability Manager

Address:

Head office:

Unit 30-08, Mail Box 238, Menara Landmark, No.12, Jalan Ngee Heng, 80000, Johor Bahru, Johor

Tel: 07-2231633

Fax 07-2241546

Email: [email protected]

Evaluation dates:

Pre Assessment 2 – 5 Sept 2008

Main Evaluation 11 – 15 May 2009

Surveillance 1 14 – 16 March 2011

Surveillance 2 5 – 8 March 2012

Surveillance 3 7– 8 Jan 2013

http://www.carotino.com/

mailto:[email protected]


GP 7003A Page 2 of 63

TABLE OF CONTENTS

1. Scope of the surveillance ............................................................................................ 4

1.1 Certification unit background ................................................................................... 4

1.2 Location .................................................................................................................. 5

1.3 Production records .................................................................................................. 5

1.4 Certification details ................................................................................................ 10

1.5 Description of fruit supply base ............................................................................. 10

1.6 Associated smallholders and outgrowers progress towards compliance with

relevant standards ........................................................................................................... 11

1.7 Contact person ..................................................................................................... 11

2. Surveillance evaluation process ................................................................................ 11

2.1 Team members ..................................................................................................... 11

2.2 Surveillance 03 Evaluation schedule ..................................................................... 11

3. Surveillance findings ................................................................................................. 12

3.2 Summary of findings ............................................................................................. 56

3.3 Maintenance of certification .................................................................................. 56

3.4 Status of non-conformities .................................................................................... 58

3.5 Certified organisations acknowledgement of internal responsibility ....................... 58

APPENDIX A: CORRECTIVE ACTION REQUEST & OBSERVATION

APPENDIX B: NON-CONFORMITIES PREVIOUSLY IDENTIFIED

APPENDIX C: TIME BOUND PLAN


List of Abbreviation

Short Form Meanings

CAR Corrective Action Request

CHRA Chemical Health Risk Assessment

CPO Crude Palm Oil

DID Department of Drainage and Irrigation, Malaysia

DOE Department of Environment, Malaysia

EFB Empty Fruit Bunch

EIA Environment Impact Assessment

EMS Environmental Management System

EQA Environmental Quality Act

ERT Endangered, Rare and Threatened species

ESA Environmentally Sensitive Area

FFA Free Fatty Acids

FFB Fresh Fruit Bunches

FR Forest Reserve

Ha Hectare

HCV High Conservation Value

HDPE High Density Polyethylene

IPM Integrated Pest Management

ISO International Organisation for Standardisation

IUCN International Union for Conservation of Nature and Natural Resources

JCC Joint Consultative Committee

JUPEM Jabatan Ukur dan Pemetaan Malaysia (Department of Survey and Mapping

Malaysia)

K Potassium

kW Kilowatt

M Meter

Mg Magnesium

Mm Millimeter

Mt Metric ton

MYNI Malaysia National Interpretation

N Nitrogen

NGO Non Governmental Organisation

OA Orang Asli (Indigenous People)

OER Oil Extraction Rate

OSH Occupational Safety & Health

P Phosphate

P & C Principles and Criteria

PK Palm Kernel

POME Palm Oil Mill Effluent

PPE Personal Protective Equipment

PT Pejabat Tanah (Coding for Pahang Land Office)

SOP Standard Operating Procedures

Sdn Bhd Sendirian Berhad (Private Limited)

SEIA Social and Environment Impact Assessment

Sg Sungai


SGS Societe Generale de Surveillance

SOP Standard Operating Procedures

SPC Senior Plantation Controller

USECHH Use and Standards of Exposure of Chemicals Hazardous to Health

WHO World Health Organisation

yr Year

Annual Surveillance Report

1. SCOPE OF THE SURVEILLANCE

1.1 Certification unit background

The J.C. Chang Group is a Malaysian based and privately-owned business group with a portfolio of businesses in oil palm plantations, palm oil milling and refining, property and development, hotel, insurance, manufacturing and trading.

Oil palm plantations and CPO milling form the core business of the Group. They have one CPO mill and five oil palm plantations in Pahang, and three CPO mills and twelve oil palm estates in Sabah. Their total gross plantation area is about 40,000 hectares, with a total milling capacity of about 200 mt FFB per hour. In addition, a refining and manufacturing plant in Pasir Gudang produces various downstream palm products for exports.

Carotino Sdn Bhd is a member of the vertically integrated J.C. Chang Group of companies and is involved in downstream businesses that enhance the value of crude palm oil. They have commercialized a patented physical refining process for the production of natural carotenes and tocotrienols-rich oils and fats, marketed globally under the brand name Carotino.

The Carotino Palm Oil Mill and its supply base estates consist of 5 estates (i.e. Hwa Li Estate 1, Hwa Li Estate 2, Maran Estate, Asia Oil Palm Estate 1, and Pahang Oil Palm Estate 1) with the following legal ownership:

Hwa Li Estate 1 – under 13 different PTs which are lands under the ownership of Sharikat Keratong Sdn Bhd, a wholly owned company under JC Chang Group.

Hwa Li Estate 2 – a single title PT 2389 HSD 2850 owned by Carotino Sdn Bhd, which is under JC Chang Group.

Maran Estate – under 6 titles belonging to Richley Corporation Sdn Bhd, which is under JC Chang Group.

Asia Oil Palm Estate 1 – less than 6 land titles owned by Asia Oil Palm Sdn Bhd, a company under JC Chang Group.

Pahang Oil Palm Estate 1 – land belongs to Pahang Enterprise Sdn Bhd, a wholly owned company under JC Chang Group.

A main assessment of the Carotino Production unit was undertaken by SGS between 11 – 15 May

2009 to evaluate field practices and documentation of the unit against the Roundtable on Sustainable

Palm Oil (RSPO) Principles and Criteria (P&C) – Malaysia National Interpretation (MYNI). The

assessment resulted in the issuance of 8 Corrective Action Requests (CAR), all Minor CARs.

However, the RSPO certificate was not awarded until May 2010.

A surveillance visit was conducted from 14 - 16 March 2011 to verify actions taken to close out Major

gaps identified during the main field assessment. During this visit, 7 Minor CARs were closed and 1

Minor CAR remained outstanding. In addition, 2 new Minor CARs were also issued.


Since there are no Major CARs, the unit was recommended for certification. The report has been

reviewed by the RSPO Board which resulted in the issuance of a conditional certificate to Carotino on

27 April 2010. The validity of this certificate is over a period of 5 years and subject to annual

surveillance.

The second annual surveillance was conducted from 5 – 8 March 2012. During this visit 3 Minor

CARs and 1 Observation were closed. In addition 1 new CAR was raised with 4 new Observations.

The new CAR was closed when Carotino Sdn Bhd submitted the evidence before the report was

prepared.

The estimated annual CPO production of the Carotino Palm Oil Mill is 30,300 mt and the estimated

annual palm kernel production was at 7,700 mt. The first annual surveillance done March 2011

recorded that the Carotino Mill processed 28,648.62 mt of certified CPO from November 2009 to

December 2010.

During this second surveillance , Carotino Sdn Bhd reported form their records for the year 2011, the

mill processed 118,331 FFB from its own supply based estates and produced 23,994.69 MT certified

CPO and 6,483.11 palm kernel.

This is the report for the third surveillance conducted from 7th – 8

th January 2013.

1.2 Location

The Carotino Production Unit is divided into two separate location blocks. The first block consists of

the Asia Oil Palm Estate 1, Pahang Oil Palm Estate 1 and Maran estate located north of Sri Jaya

town. Other oil palm estates or natural areas such as forest reserves or stateland forests surround this

area. Mining companies nearby practice land clearing and mining operations.

The second block consists of the Hwa Li Estate 1 and Hwa Li Estate 2 that are located 100 km south

of the first block. Hwa Li Estate 2 is located at the tri-state boundary (i.e. Negeri Sembilan, Johor and

Pahang), while Hwa Li Estate 1 is further east and borders Hutan Simpan Lesong withing Rompin

District.

Map 1 illustrates the land-use pattern surrounding the Carotino Production Unit’s estates in southern Pahang in 2002. The five component estates in this assessment are in two groups. Asia Oil Palm Estate 1 (AOP 1), Pahang Oil Palm Estate 1 (POP 1) and Maran Estate (MRE) are in the north and Hwa Li Estate 1 (HL1) and Hwa Li Estate 2 (HL2) to the south. The landscape issue of interest for these plantations include various ‘high conservation values’ (HCV): biological diversity (HCV 1, 2 & 3), natural resource quality and availability (HCV4), as well as the use of land for economic benefits (HCV5). Cultural value (HCV6) needs to be viewed at a larger scale. The primary issues of concern include:

The large contiguous area of oil palm and its effect on ecological imbalance and crop pest

management (HCV2, 3 & 5);

‘biological corridors’ between the forest blocks adjacent to AOP, POP and ME (HCV1,2 & 3);

The isolated lowland forest to east (HCV2 & 3), and rubber areas (HCV5) usually associated with

small cultivators to the west of HL2; and

The Lesong Forest Reserve on 3 sides of HL1, which borders with Endau-Rompin National Parks

and is recognised as an area of high biodiversity (HCV1, 2, 3 & 4).

1.3 Production records

The total Fresh Fruit Bunch (FFB) production processed recorded for 2011-2012 for all five estates

was 101,543.48 MT. See Table 1 and Table 2 below for FFB production and processed for all

estates. Total Crude Palm Oil (CPO) and Palm Kernel (PK) production over the same period are

shown in Table 3. The monthly oil extraction rates (OER) fluctuation is presented in Figure 1 and the

mean OER and KER recorded for the same period (July 2011-June 2012) was 19.86% and 5.30%

respectively.


Due the long distance of HL 1 and HL2 from the Carotino Palm Oil Mill, occasionally the FFB from

these estates are diverted and processed in other neighbouring Oil Mills like Surburban Palm Oil Mill

and Kuantan Trading Palm Oil Mill.

SGS RSPO

(Principles & Criteria)

Doc. Number: GP 7003A

Doc. Version date: 01 January 2013

Page: 7 of 63

Map 1: Land use at the landscape level around the Carotino estates. (Source Dept. Agriculture.)

MAP OF CAROTINO


Table 1: Fresh Fruit Bunch Production (MT) from 2005-2012

Estate 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012

Hwa Li 1 32,632 31,549.03 49,629.06 50,961.74 47,745.79 49,773.54 46,577.22

Hwa Li 2 48,110 44,973 53,555 48,696 42,101 41,206 38,011

Asia Oil Palm 31,533 25,709 39,157 40,347 38,413 32,898 32617.67

Pahang Oil Palm 29689.58 29530.9 33013.63 32079.22 28053.79 24360.13 24026.51

Maran 29,103 29,877 26,843 27,282 21,151 16,183 14,685.89

Total 171,068 161,638.93 202,197.69 199,365.96 177,464.58 164,420.67 155,918.29

Table 2: Fresh Fruit Bunch Processed in Carotino POM from 2005-2012

Estate 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012

Hwa Li 1 26,510 32,632 31,551 49,629 50,962 47,746 8,889 5722.73

Hwa Li 2 46,022 48,110 44,973 53,555 48,696 42,101 36,001 24,490.68

Asia Oil Palm 27,640 31,533 25,709 39,157 40,347 38,413 32,898 32,699.27

Pahang Oil Palm

25,755 29,689 29,531 33,013 32,079 28,054 24,360 24,026.51

Maran 21,228 29,103 29,877 26,843 27,282 21,151 16,183 14,685.90

Total 147,355 171,067 161,641 202,197 199,366 177,465 118,331 101,625.09


Table 3: FFB Received from the Estate, Processed to CPO and PK for the period July 2012/June 2012

ESTATE FFB ( MT) CPO ( MT ) PK ( MT ) OER ( % ) PK ( % )

HWA LI 1 5,722.73 1,114.22 289.57 19.47 5.06

HWA LI 2 24,490.68 4,891.76 1,324.95 19.68 5.41

AOP 1 32,617.67 6,751.85 1,653.72 20.7 5.07

POP 1 24,026.51

4,944.358 1,261.132

20.58 5.07

MARAN 14,685.89 2,769.051 858.703 18.88 5.88

TOTAL 101,543.48 20,471.239 5,388.075

Table 4: % Oil Extraction Rates from July 2011 – June 2012

ESTATE OER % PK %

HWA LI 1 19.47 5.06

HWA LI 2 19.68 5.41

AOP 1 20.7 5.07

POP 1 20.58 5.07

MARAN ESTATE 18.88 5.88

MEAN AVERAGE 19.86 5.30


1.4 Certification details

The Carotino Production Unit has been assessed and certified as meeting the requirements of RSPO

Principles and Criteria (2007) for Sustainable Palm Oil Production as specified in the Malaysian

National Interpretation (MYNI) (2008). The validity of the certificate (SGS-RSPO/PM-00514) is from

27 April 2010 to 26 April 2015.

1.5 Description of fruit supply base

The Carotino Palm Oil Mill receives FFB from the following estates: Hwa Li Estate 1, Hwa Li Estate 2,

Maran Estate, AOP 1 and POP 1 estates. For the purposes of surveillance, the production details

from July 2005 to July 2012 are presented in Table 1 and Table 2 above.

Table 5: Age Profiles of Each Estate in 2011/12

Age category (year) AOPE 1

(ha)

POPE (ha) Maran

Estate(ha)

Hwa Li 1

(ha)

Hwa Li2

(ha)

Total

(ha)

Immature /Replant 137.50 302.94 777.43 142.85 0 1,360.72

>3 – 5 265.99 470.16 412.2 0 0 1,148.35

6 – 10 568.39 604.63 118.03 868.86 0 2,159.91

11 – 20 976.83 460.26 112.02 624.99 0 2,174.1

21 – 25 0 0 0 0 1,515.95 1,515.95

> 25 0 0 364.41 289.04 0 653.45

Total cultivated 1,948.71 1,837.99 1,784.09 1,925.74 1,515.95 9,012.48

Production Area 1,811.21 1,535.05 1,170.25 1,925.74 1,515.95 7,958.2

Conservation Area

(ha) 28.05 99.98 7.15 0 12.47 147.65

HCV Area (ha)*Indicate

if HCV area is part of the

conservation area NIL

24.98

(HCV area is a

part of

conservation

area)

0 0 10.08 35.06

Other than the above 164.06 202.78 349.58 236.11 120.71 1,073.24

Total certified area ( ha ) 2,140.82 2,140.75 2,140.82 2,161.85 1,659.21 10,243.45


1.6 Associated smallholders and outgrowers progress towards compliance with relevant

standards

There are no associated smallholders and outgrowers under this unit.

1.7 Contact person

Name Seow Chee Chiang

Designation Estate Department/Sustainability Manager

Unit 30-01, Mail Box 300 Menara Landmark, No 12, Jalan Ngee Heng 80000 Johor Bahru, Johor Malaysia

Contacts Tel: +607 2231633

Fax: +607 2241546 Email [email protected]

2. SURVEILLANCE EVALUATION PROCESS

2.1 Team members

Lead Auditor

James S H Ong is an agronomist by training. He has many years experience in the agriculture sector in Malaysia having worked as Assistant Plantation Manager in a number of estates in Malaysia. He is well versed with agro chemical and fertiliser applications. Has undergone ISO and RSPO Lead Auditor training and has been involved in a number of audits on oil palm plantations

Auditor Abdullah Din is a forester by profession and a trained Lead Auditor with 4 years experience in forestry Chain of Custody (CoC) certification. He also has been involved in a number of Forest Management (FM) certification for the last 4 years. In addition , he is a Lead Auditor for RSPO ,trained by RSPO for auditing against RSPO P&C and involved in a number of plantation assessments and audit of palm oil mill

Auditor Mohd Faisal Jaafar is a degree holder in forestry from Universiti Putra

Malaysia. Faisal has a 7 years experience in operating Malaysian Timber

Certification Scheme with specialization in forest management certification

and forest plantation management certification. Has undergone the

necessary ISO 9000 Lead Auditor course and has gathered substantial

auditing experience pertaining to forest certification.

2.2 Surveillance 03 Evaluation schedule

Date Itinerary Notes

07/01/2013 Travel KL- Sri Jaya

Opening meeting POM

Carotino POM

Briefing by POM-PMU & Corrective Actions Briefing on Surveillance Visit & Field Scheduling Field Operation – Spraying , Harvesting , Buffer zone area Discussion with responsible personnel For Mills : Supply Chain Modular D Estate Doc Review



AOP 1 & POP 1

Line site and Storage facilities Closing and presentation of Findings Travel down to Segamat

08/01/2013

Visit to:

Hwa Li 1

Field Operation

-HCV & Boundary markers

-Safety & PPE

Buffer zone Integrated pest management – Barn owl, Beneficial plants Harvesting area and worker interview Landfill & Road , Erosion Chemical storage, workshop, scheduled waste area, line site etc – Document Review – Social , Gender, Representatives Closing and presentation of Findings

3. SURVEILLANCE FINDINGS

The surveillance findings are presented as an addition to the original assessment findings. This is

intentionally done to provide background information for the closure or maintenance of CARs and

observations raised in the main assessment and the follow up surveillance visits. New observations

and CARs may also be raised at the indicator level and are presented in the same table. It should be

noted that similar to the main assessment, while the non conformances raised refer to the MYNI

indicators, findings made during surveillance visits are summarized and presented only at criterion

level.

For further clarity of the findings made and issues raised in this surveillance report, reference to the

summary main assessment report may be required.

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. Compliance

Major

S03 Findings:

Records of requests and responses was maintained

Objective evidence:

Ref : Stakeholder Request Book

AOPE 1: - Record of neighbouring stakeholders is maintained. List of stakeholders

are as below: 1) Ladang Felda Lepar Utara 5 & 10 2) Kedai Lim Huat 3) Sri Jaya Estate 4) Ladang Pasfa 5) Carotino Palm Oil Mill 6) Pahang Oil Palm Estate

- Request from stakeholder ( Felda Lepar Utara) to entering the estate to


search on their own buffaloes . Letter of request dated 04 Oct 2012 and 26 June 2011 are available. Response & Action taken has been recorded in the same letter.

POPE 1: - Request from stakeholders are maintained in Stakeholder Request Book. - For e.g. request the use of road by the stake holder ( Pengarah Khidmat

Beseri (M) Sdn Bhd – mining company) dated 16 Mar 2012 is available. Hwa Li :

- No request received from external stakeholders since last surveillance visit.

- Request from internal stakeholders ( workers) been recorded in “Stakeholder Request Book” – based on record, the request from internal stakeholders mainly foreign workers is related to application of long leave (more than 2 moths) to go back to their country .

A total of 25 requests received from internal stakeholders which all response/action has been taken.

The company is in compliance to this requirement: Y

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)

S03 Findings:

Management documents are publicly available

Objective evidence:

Management documents are publicly available on the webpage. There is a mechanism to ensure that documents are publicly available, as stipulated in the individual management plans.

o Land titles / user rights o Safety and health plan o Plans and impact assessments relating to environmental and social

impacts o Details of complaints and grievances o Negotiation procedures o Continuous improvement plan

In addition , it is also posted on noticeboards at the office of the estate as well a the security gate


1.2.2 Safety and health plan (C 4.7)

S03 Findings:

Objective evidence:

Please refer to 1.2.1


1.2.3 Plans and impact assessments relating to environmental and social impacts (C 5.1, 6.1, 7.1, 7.3) S03 Findings:

Objective evidence:




1.2.4 Pollution prevention plan (C 5.6)

S03 Findings:

Objective evidence:



1.2.5 Details of complaints and grievances (C 6.3)

S03 Findings:

Objective evidence:



1.2.6 Negotiation procedures (C 6.4)

S03 Findings:

Objective evidence:



1.2.7 Continuous improvement plan (C 8.1)

S03 Findings:

Objective evidence:



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.

Compliance

Major

S03 Findings:

Evidence of compliance with legal requirements available and made sure is up-to-date

Objective evidence:

MPOB Licence: 500356604000 ( 1/11/2012 – 31/10/2013) for 144,000 MT FFB

Carotino Sdn Bhd ( Registered No: 69046-T)


DOE : 000897 30/6/2013

DOE :

JKKP Licences and permit file :

‘Dandang Stim ‘3 Boiler Licence

2 Pressure filter

Deaerator Storage Tank

Vacuum Dryer

etc

Current valid licenses and permits are framed and displayed in the mill and estate offices and there is no evidence of non compliance to legal requirement.

AOPE 1

- Licenses and permits available - MPOB license no. 501433902000 with validity period from 01 Apr 2012 to

31 Mar 2013.

Hwa Li: - Licenses and permits are displayed at the office. - List of licenses & permits available. 1) MPOB license no. 501381202000 (validity date period from 01/04/2012 to

31 Mar 2013.


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

Compliance

Minor

S03 Findings:

A documented system, which includes written information on legal requirements is available.

Objective evidence:

A list and copies of legal documents and international treaties and agreements are available, with changes is tracked through www.lawnet.com.my. The person responsible for monitoring compliance to laws and regulations is formally identified in the guidelines.

AOPE 1: List of local laws & List of Related International Standards are maintained. List of local laws has been divided into 03 categories as below:

1) Published Malaysia Government Laws & Regulations Governing Oil Palm Industries

2) List of Books on Malaysia Government Laws & Regulations Governing Oil Palm Industries

3) List of Other Related Reference Books

Hwa Li : Same as above.


2.1.3 A mechanism for ensuring that they are implemented. Compliance

Minor

S03 Findings:

A mechanism for ensuring that they are implemented is available

Objective evidence:

As above

AOPE 1 & POPE 1 & Hwa Li: - “SOP on Mechanism to trace changes in legal requirements”


(E/005-03/2011) dated 26 Jul 2011 is maintained. AOPE 1

- Mr. Saravana (Senior Assistant Manager) has been appointed as personnel in charge to track changes in any amendments of all relevant laws dated 01 July 2012.

POPE 1: - Mr. Kiu Hieng Seng (Senior Assistant Manager) has been appointed on

01 July 2010. Hwa Li :

- Mr.Murugan Raman ( Assistant Manager) has been appointed on 01 July 2011.


2.1.4 A system for tracking any changes in the law. Compliance

Minor

S03 Findings:

A system for tracking any changes in the law is available

Objective evidence:

A list and copies of legal documents and international treaties and agreements are available, with changes is tracked through www.lawnet.com.my. The person responsible for monitoring compliance to laws and regulations is formally identified in the guidelines.

AOPE 1: - Changes on the laws has been checked through “NewsFlash” in the

website http://www.lawnet.com.my - Example of newsflash for the month of Aug 2012 has been forwarded to

person in-charge at the estate. A document P.U.(A) 214 “Akta Majlis Perundingan Gaji Negara 2011” “Perintah Gaji Minimum” issued from the web was found being updated into Register of Law maintained by the estate.

Hwa Li :

Same implemented as above.

HL1

The Asst manager Mr Murugan Raman on 1/7/11 was appointed to track changes in laws.


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. Compliance

Major

S03 Findings:

Evidence of legal ownership of the land including history of land tenure is available.

Objective evidence:

AOPE 1: Land titles are available

1) H.S. (D) 11073 PT 221 446.78ha 2/04/2071 2) H.S. (D) 11074 PT 222 878.18ha 2/04/2071 3) H.S. (D) 10807 PT 720 254.15ha 12/06/2073 4) H.S. (D) 10808 PT 721 120.60ha 12/06/2073 5) H.S. (D) 3851 PT937 20.23ha 28/06/2077 6) H.S. (D) 4147 420.88ha 18/06/2079

Total 2140.82ha

http://www.lawnet.com.my/


Hwa Li: H.S. (D) Lot no. ha 33 415 56.66 34 416 64.75 70 513 38.04 71 523 16.19 72 524 366.65 1450 51 252.12 1451 52 23.88 1452 53 314.04 1453 54 2.43 1454 55 296.23 1455 56 325.37 1456 317 280.85 1457 318 124.64

Total 2161.85


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].

Compliance

Major

S03 Findings:

Carotino Sdn Bhd show that they comply with the terms of the land title.

Objective evidence:

POPE 1 : Evidence of the estate comply with the term of land title as below: The term stated land use category is for Agriculture specifically for palm oil plantation with 99 years tenure until 12 June 2073 for License no. H.S.(D) : 10806 : Area = 733 acres Hwa Li:

Checked on H.S. (D) 33 (140 acre). The term stated land use category is for Agriculture specifically for palm oil plantation with 99 years tenure until 12 June 2077.


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

Compliance

Minor

S03 Findings:

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

Objective evidence:

POPE 1: - Survey of Boundary Stones Map – Updated on 22 Feb 2012 is available.

Hwa Li :

Visit to Compartment AA00 found that evidence of boundary stones exist at the boundary with Hutan Simpan Lesung.

The company is in compliance to this requirement: Y/N

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.

Compliance

Minor


S03 Findings:

Carotino Sdn Bhd has conflict resolution processes in place to resolves possible disputes.

Objective evidence:

All plantations were established in the 1960s and 1970s and they did not diminish the legal rights, or customary rights, of other users in the vicinity at the time of planting

Clear physical boundary demarcation with legal land title was observed during site visits


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.

Compliance

Major

S03 Findings:

Surveyed Estate maps available

Objective evidence:

There are no claims on legal or customary rights on the estate land or boundary disputes with neighbouring communities.


2.3.2 Map of appropriate scale showing extent of claims under dispute. Compliance

Major

S03 Findings:


Objective evidence:

As above . 2.3.1


2.3.3 Copies of negotiated agreements detailing process of consent. (C2.2, 7.5 and 7.6).

Compliance

Minor

S03 Findings:


Objective evidence:

As above . 2.3.1


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 2 years of projection. Compliance

Major

S03 Findings:

Annual budget with a minimum 2 years of projection available


Objective evidence:

Carotino Palm Oil Mill : Final Estimates of Expenditure for FY 2012/13

POPE 1:

A document “ Summary of Palm Oil Expenditure for Estimate Year 2013/2014 and 2014/2015

1) Upkeep & Cultivation 2) Collection

In summary the cost of FFB /ha is RM19.50 for year 2013/2014 and RM 21.95 for year 2014/2015

Hwa Li :

Annual budget for FY 2012/2013 and 2013/2014 available for a total area 2088.65 ha. The volumes of FFB projected for FY 2012/2013 is 48,078 MT ( 26.96MT/ha) and FY 2013/2014 is 49,159MT (27.57MT/ha)


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

Compliance

Minor

S03 Findings:

Annual replanting programme projected with yearly review available

Objective evidence:

POPE 1: No new replanting program. Replanting programme was completed in Year 2011 which was started in Year 1997. Total area replanted is 1837.99 ha. History record of replanting as of 30 June 2012 is available. Hwa Li:

Planting Programme: PM 78A ( 150 ha) plan to be replanted in year 2013. A records showed that PM 81A (156 ha) and PM 78A (150 ha) has been planted in Year 2010 and 2011 respectively.


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. Compliance

Major

S03 Findings:

Documented Standard Operating Procedures (SOP) for estates and mills available

Objective evidence:

SOPs for both estates and mill , guidelines and works instruction are maintained to guide implementation of best practices in the estates and the mill


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

Compliance

Minor


S03 Findings:

Records of monitoring and the actions taken are maintained

Objective evidence:

POP- email evidence of new SOP ‘guideline on Security main gate management’ was distributed on June 11, 2012

Records of monitoring available in

a) Estate Monthly Progress Report

b) Plantation Advisor Report

c) Internal Auditor Report


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. Compliance

Minor

S03 Findings:

Monitoring of fertilizer inputs through annual fertilizer recommendations available

Objective evidence:

Ref: Manuring Programme file .

a) Manuring Costing Book

b) Monthly progress report

c) Fertiliser Delivery Receipt Book

Fertiliser Programme –Pahang Oil Palm Estate. 1st half 2012/13 Financial

year

This is done 6 monthly by Mr Tan Ah Aia, Agronomist –cum-Consultant

An email received on 7/1/13 has been shown during the audit to indicate the second half recommendation of the FY will be out soon.


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

Compliance

Minor

S03 Findings:

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

Objective evidence:

Ref : Principle 4 file

Both soil and leaf sampling results are available.

The results for the latest foliar sampled in Oct 2012 was made available . the result came out on 7/11/12

The soil sample results is not out yet. The soil sampled in May 2012 results are docuemted in the file . Dated : 8/8/12


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

Compliance

Minor


S03 Findings:

Monitoring of the area on which EFB, POME and zero-burn replanting is applied is available.

Objective evidence:

EFB applied to the field . Ref: EFB Record.

Record shows that during Dec 2012: 957.63 MT was applied in POP1 in Field 01 Block A1.

POME application record is available at the Mill. POME is applied to fields close to the Mill ) in POP1 & AOP1 using using a sprinkler system covering about 100 ha.

Boiler Ash Record application was also available in POP1

EFB Distribution Map is also available


Criterion 4.3

Practices inimize and control erosion and degradation of soils.

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

Compliance

Minor

S03 Findings:

Documentation for minimizing soil erosion and degradation is available.

Objective evidence:

SOP : Guideline on Managing Steep areas planted with Oil Palm

SOP outlines measures on risk assessing existing steep areas, Operational risk, steps and measures to minimise environmental and operational risk and the long term plan for areas with slopes greater than 25 degrees.

Documented evidence of minimizing soil erosion through Terracing is also available

Documents on techniques use are filed eg planting of covercrop, roto-slashing, road maintenenace, off-shoot, water diverter and ‘smiling terraces

Maps of individual blocks that shows areas of flat and steep are also available

Tabulated table of Gradient and slope profile for POP1 is available


4.3.2 Avoid or minimize bare or exposed soil within estates. Compliance

Minor

S03 Findings:

Bare or exposed soil within estates are avoided

Objective evidence:

AOP1- soft grasses are maintain in the palm interows

Plam circles are normally sprayed to ease harvesting and loose fruit collection

In the immature area , ‘Savan’ Mat are placed around the palms to reduce herbicide spray and the minimise competition from weeds growing around the palms



4.3.3 Presence of road maintenance programme. Compliance

Minor

S03 Findings:

Road maintenance programme is documented

Objective evidence:

Ref: Principle 4 file under the ‘Road Maintenance’ section

Road Grading

Culverts – New/Replacement or Repair

Water diverter/Off-Shoots

Making New roads

A tabulated table was shown that indicate field number, maintenance programme as well as the month the work was done . e.g programme 12/13 in field 99A in August RM521.32 was spent on Road grading


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

Compliance

Minor

S03 Findings:

No peat onsite.

Objective evidence:

Based on soil map, no peat identified ,


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).

Compliance

Minor

S03 Findings:

Soils are identified. No fragile or problem soils.

Objective evidence:

POP1 soils series identified : Awang, Colluvium, Kawang, Penambang, Rengam, Tebok, Tok Yong


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.

Compliance

Major

S03 Findings:

Water courses and wetlands are maintained but with some isolated oversight

Objective evidence:

Estate is guided by the SOP : Doc No: C/001-02/2009 - Guidelines on Establishment of Riparian Buffer Zone

Estates plans Guatamala grass along the river to prevent soil erosion

Sign Boards ‘Zon Penampan’, PVC poles and ‘yellow-marked ‘ palms were also evidence on commitment to maintain the buffer zone.

Floodings were evidence during the the year end of 2012

Maps of main rivers and water ways available eg in AOP1 the main river is Sg Rami.

IN POP1, maps to identify wetlands/ swamps were available


Nevertheless in AOPE1 , there were some spraying done within the buffer zone.

( Observation 01 )


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

Compliance

Major

S03 Findings:

No evidence of construction of bunds/weirs/dams.

Objective evidence:

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


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).

Compliance

Major

S03 Findings:

Monitoring of outgoing water into natural waterways is available.

Objective evidence:

The estates are guided by : Guideline on River Water sampling procedures

In the Mill the following are monitored

Waste water or effluent is 100% for land Irrigation / Atas Tanah

Ref: BOD, COD and Effluent file

Records the BOD, and meter reading of the outgoing waste water

Eg 3rd

Dec 2012 BOD 7 mg/l ( Licence 500 mg/l ), Waste water discharge : 137m3

Amount sent to AOP . 5 hours. Ref: ETP Influent & Final discharge Meter Reading

The weekly analysis is recorded in the ‘ Effluent Testing Certificates : Felda

Submitted Quarterly to DOE


4.4.4 Monitoring rainfall data for proper water management. Compliance

Minor

S03 Findings:

Rainfall data is available.

Objective evidence:

Ref: Estate Rainfall Record Book

POP1 . Records kept since 2001

2010 : 2260mm, 2011 : 2479mm, 2012 : 1619mm


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

Compliance

Minor


S03 Findings:

Water usage monitored.

.

Objective evidence:

In the Mill records of water usage is recorded and monitored. Ref : RSPO Princ 4 : Water Usage

Month Dec 2012

FFB processed ( MT ) 12,045

Mill Processing ( m3) 14,695

Mill Housekeeping 1,302

Consumption water/ FFB 1.27

Water Domestic Use ( m3) 5,761

In the Estates, monitoring of usage is also conducted.

e.g. POPE1 : Monthly records of Domestic water usage is available since 2008. From the period Jan 2012 – Sept 2012 the average water consumption is 639 lits/ person /day.

Water analysis report is also available


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

Compliance

Minor

S03 Findings:

Water drainage into protected areas is avoided

Objective evidence:

Effluent water from the mill are for land irrigation and not drained into protected area.


4.4.7 Evidence of water management plans. Compliance

Minor

S03 Findings:

Evidence of water management plans available

Objective evidence:

Ref: Guidelines on Water Management Plan-West Malaysia

a) Riparian Buffer Zone

b) Demarcation of Wetland areas

c) Soil & Water conservation

d) No construction of bunds.weir across rivers

e) Monitoring of water into main river


Criterion 4.5

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


4.5.1 Documented IPM system. Compliance

Minor

S03 Findings:

IPM system documentation available,

Objective evidence:

Guidlines on IPM of Oil palm

a) Definition

b) Surveillance , Monitoirng & Census

c) Chemical control

d) Calibration pf pesticide application

e) Biological control

f) IPM of leaf eating caterpillar, rats, rhinocerous beetle

g) Operator safety and training


4.5.2 Monitoring extent of IPM implementation for major pests. Compliance

Minor

S03 Findings:

IPM implementation was monitored.

Objective evidence:

Ref: Prin 4

Recorded in the Pest Damage Census Form

Maps of planting of beneficial plants

Records of maintenance of beneficial plant – weeding

Maps of barn owl nest

Records of occupancy ( POPE1 )

a) Date census: 10/7/12

b) Total adult: 13

c) Chicks: 5

d) Eggs: 11


4.5.3 Recording areas where pesticides have been used. Compliance

Minor

S03 Findings:

Records are available.

Objective evidence:

HL1 :

Recorded in the Costing book

Eg on record on 5 Dec 2012, in field PR12A , material cost of rat bait Storm RM1,220, labour cost RM330.00 , total per ha RM10.87

Records for circle spray & selective spraying available tooin the respective files.

Maps where the pesticide used is available


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

Compliance

Minor


S03 Findings:

Monitoring if pesticide done.

Objective evidence:

HL1

File: Monitoring of pesticide usage units per ha & per ton of crop

Tabulated table

a) Period of monitoring

b) Field

c) Total FFB

d) Av OER

e) Total Oil Yield

f) Total Chemical Used, % a.i, Total a.i used/litre a.i used per MT FFB and Oil

For e.g. glyphosate litre a.i used per MT Oil for the period Oct-Dec 2012 : 0.00004 lit a.i used per MT Oil


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 categorised as World Health Organisation 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 agrochemicals use.

Compliance

Major

S03 Findings:

Written justification in Standard Operating Procedures (SOP) of all agrochemicals use available

Objective evidence:

File : Princ 4. Doc. Ref: B/008-10/2013 Justificaiton for pesticide usage under IPM management

Updated 01/01/2013

AOPE 1: The document “Justification for Weedicides Usage” (B/009-08/2012) dated 03 Aug 2012 is available.


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

Compliance

Major

S03 Findings:

Registered pesticides used.

Objective evidence:

Products are locally registered

AOPE 1 & Hwa Li :

Herbicides used according to local requirements – “Senarai Racun Makhluk Perosak” available in Department of Agriculture website.



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.

Compliance

Major

S03 Findings:

Storage of chemical is in accordance to the OSH Act 514.

Objective evidence:

HL1

MSDS

Chemicals segregated based on class type

Agrochemical mixing area + equipment like measuring container, funnel etc.

Emergency procedure

Spill Kit

Emergency shower

Warning sign

Ventilated and lighting

AOPE 1: Observed that all chemicals (herbicides) have been properly stored at the “Chemical Store” with CSDS available for each chemical. The chemical store was found complied with OSH requirements.


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.

Compliance

Major

S03 Findings:

All chemicals information is available onsite.

Objective evidence:

MSDS available in local understood languages like English and BM

AOPE 1: - CSDS – Chemical Safety Data Sheet translated to Malay language is

available at the Chemical Store and understood by the store keeper and mandoure that in-charge in chemical handling and mixing.

- E.g. “Data Keselamatan Kimia” for Ally 20DF.


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

Compliance

Major

S03 Findings:

Annual medical surveillance was made available during onsite audit.

Objective evidence:

POP1 : 17/1212

By Dr Yasniza Yahaya , Occumed Consultancy & Services Sdn Bhd

For sprayers, manurers,foremen and those who are involved with chemicals

HL 1 : No female sprayers



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

Compliance

Major

S03 Findings:

No work with pesticides for confirmed pregnant and breast-feeding women.

Objective evidence:

HL 1 : No female sprayers

At AOPE 1, Dec 2012 records ‘Ladies sprayer and Pregnancy Test’ from the Hospital Assistant show that 5 female sprayers were shown that they were interviewed and tested to confirm their status of pregnancy.


4.6.7 Documentary evidence that use of chemicals categorised as World Health Organisation 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.

Compliance

Minor

S03 Findings:

Records show no Type 1A or 1B chemicals are not used.

Objective evidence:

Type 1A or 1B chemicals are not used.

Paraquat eliminated from used.

Rodenticide Storm used when the damage threshold is reached.


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

Compliance

Major

S03 Findings:

No aerial spraying used.

Objective evidence:

No aerial spraying


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

Compliance

Minor

S03 Findings:

No CPO testing requested by buyer.

Objective evidence:

No request by buyers to analyse CPO for chemical residues


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

Compliance

Minor

S03 Findings:

Records of pesticide use (including active ingredients used, area treated, amount applied per ha and number of applications) are maintained

Objective evidence:


HL1 : File document show that records kept since 2007

In the latest ‘ Monitoring of weedicide usage units per tonne FFB and per tonne oil as per 4.5.4


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).

Compliance

Major

S03 Findings:

Documented of OSH plan is available.

Objective evidence:

A safety and health policy, is communicated and implemented. : Safety and Health Policy July 2012 ( revised 2011 )

b. All operations have been risk assessed and documented. : Ref : HIRARC . Documented in the Doc. Ref No: M/018-02/2011 Risk Assessment and Control ( Estates ) . latest : 14/4/2011 . Done yearly.

In the training file : Awareness and training programme which includes the following

i. to ensure all workers involved have been adequately trained in a safe working practices ( See also C 4.8) ii. all precautions attached to products should be properly observed and applied to the workers.

. The appropriate personal protective equipment (PPE) are used for each risk assessed operation. As in above , HIRARC, the document show also the PPE to be used for the operation eg for manuring the PPE to be issued are safety helmet,gloves,PVC apron, dust respirator,safety googles, long rubber boots

.

. The responsible person (s) identified. : Mr Murugan Raman ,Asst manager appointed 1/7/11 as the OSH Officer

. There are records of regular meetings between the responsible person(s) and workers where concerns of workers about health and safety are discussed. Ref: ;meeting of health and safety meeting file.OSH meeting conducted 4 times a year. 18/12/12, 26/9/12, 27/6/12,26/3/12

. Accident and emergency procedures exist and instructions are in languages clearly understood by all workers.

Available at the chemical store

Workers trained in First Aid are present in both field and mill operations. – Spraying and Harvesting mandores interviewed were found to have first aid kit

. First Aid equipment should be available at worksites. – found at the Chemical storage site, Workshop and Offices

HL 1

The annual report of occupational accident /dangerous occurance for the year 2012 was submitted to the ‘Jabatan Keselamatan & Kesihatan Pekerjaan / JKKP on 31 Dec 2012.

Form JKKP 8

The JKKP 6 was submitted whenever there is an accident . as of 2012, 2 accidents were reported and submitted 26/11/12 ( accident occurred 21/11/12 Syarifuddin Sanneni ) & 1/3/12 (accident occurred 28/02/12 Jumait – AP 435085)


However in HL 1, the worker at the genset room forgot to use the ear plug during operation .

Observation 02


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

Compliance

Major

S03 Findings:

Records were reviewed periodically.

Objective evidence:

HL 1

Records kept in the accident investigation filed

Records are quarterly reviewed :

Jan – Mar,

Apr- Jun,

Jul – Sept,

Oct – Dec 2012.

Accident categorised under: Death, complete disability, partial disability, and near miss.

AOPE 1: - Records of accident being kept. No accident reported since last year. Last

accident reported on 30 May 2011. Borang JKKP 8(1)/(IV) dated 07/01/2012. All accident reports have been reviewed.


4.7.3 Workers should be covered by accident insurance. Compliance

Major

S03 Findings:

Workers are covered by accident insurance.

Objective evidence:

HL 1

Foreign Workers compensation Scheme Policy No : J/11/WF00/026019/JHRR-05. London & pacific Insurance Co. Bhd

New workers: 17 Nepalese workers arrived on 2/1/13. They are were also insured under London & Pacific

Local staff : SOCSO & Personal Accident .

AOPE 1: - 18 local employees covered by SOCSO – Receipt of SOCSO payment (

dated 14 Dec 2012 for month of Nov 2012 is available - Foreign workers covered by “Foreign Worker Compensation Scheme” –

The Insurance “Schedule” (Policy no. J/12/WF00/029810/JHR-12) for a period of insurance from 01 Aug 2012 to 31 Jul 2012 dated 14 Aug 2012 is available.

- Total workers insured – 131 persons. POPE 1 :

- Local employees being covered by SOCSO. Receipt of SOCSO payment


(dated 11 Dec 2012 for month of Nov 2012 is available for all 27 local employees. Foreign workers covered by “Foreign Worker Compensation Scheme”. Policy no. J/12/WF00/029813/JHR-16 (policy period 01 July 2012 to 31 Mar 2013) for 125 persons.

Hwa Li: Total employees : 130 Indonesia : 102 Nepal : 15 Pakistan : 2 Local : 11


Criterion 4.8

All staff, workers, smallholders and contractors are appropriately trained.

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

Compliance

Major

S03 Findings:

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

Objective evidence:

AOPE 1: - Technical training

1. Induction Course for new employees (e.g. 06 and 08/12/2012) – Understanding the Bufferzone ( 15 personnel) and Safety Operating Procedure for harvesting ( 03 personnel)

- Safety Training 1. First Aid Training ( 16 June 2012) – 12 persons 2. Chemical Handling ( 25 Feb 2012) – Hospital Attendance conducted

by OSH Medical Officer. 3. First Aid Training ( 25 Jan 2012) – 13 personnel ( mandoures & staff)

Based on interviewed held with the store keeper, Ms. Shakira, found that she is competent in handling of chemical and fertilizer and has attended training on 31 Oct 2012 on topic “Awareness on RSPO”. POPE 1: Training Programme for Year 2012/2013 is available. For year 2013, the following training has been conducted :

1) Safe & Standard Operating Procedure (SSOP) – Weeding ( on 05 Jan 2013)

2) SSOP – Manuring ( on 05 Jan 2013) 3) SSOP- First Aid Kit ( on 01 Jan 2013) 4) Buffer Zone Awareness Training ( Weeders & Manurers) – 05 Jan

2013 Hwa Li: Training Programme for Year 2012 is available. E.g. of training conducted

1) SSOP training - Weeding and Manuring conducted on 09/02/2012 and 08/08/2012

attended by Weeders & Manurers


2) Buffer Zone Awareness conducted on 09/02/2012 attended by staff, weeders and manurers

3) Zero Burning Awareness conducted on 11/02/2012 attended by staff & workers


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.

Compliance

Major

S03 Findings:

Availability of documented aspects and impacts risk assessment that is periodically reviewed and updated.

Objective evidence:

There is no change of the Social and Environmental Impact Assessment (SEIA). The documented SEIA dated 14 January 2009 is available stating the key recommendations of the environmental aspects and impacts identified following the assessment. The SEIA is found to be periodically updated on an annual basis. The update in the form of environmental improvement plan for each of the recommendation stated in the SEIA is made available to the auditor. The improvement plan specifies the improvement plan for the recommendation identified, target date and remarks (implementation status) to the activities (improvement plan) highlighted.


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

Compliance

Minor

S03 Findings:

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

Objective evidence:

The SEIA is observed to be periodically updated at annual basis. The update includes the environmental improvement plan for each of the recommendation stated in the SEIA that is made available to the auditor. The improvement plan dated 09 October 2012 specifies the improvement plan for the recommendation identified, target date and remarks (implementation status) to the activities (improvement plan) highlighted. Among the improvement plan are:

1. Soil erosion and water management

Preservation of riparian reserve

Protection of steep area

Reduce of potential flood levels


Protection of water resources and quality

2. Protection of HCV

Protection of HCV sensitive areas

HCV management

3. Plantation Operation Management

Minimization of land disturbance area

Wastes management and recycling

Fire prevention and control

Pests and diseases management

Chemical application and raw mater pollution


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.

Compliance

Major

S03 Findings:

Identification and assessment of HCV habitats and protected areas within land holdings has been conducted.

Objective evidence:

A final ‘A conservation assessment of Carotino’s Peninsular Malaysian Estates – Conservation values and recommendations’ dated 22 January 2009 is made available.

The report identifies habitat areas of significance within the estates and makes recommendations for their conservation. This includes a timetable for implementation of riverine buffers and suggests support for the conservation of lowland forest and karst areas surrounding the estates. The report also includes estate level map identifying HCVs within each estate is available.

HCV improvement plans for each estate exist and actions that were taken by Carotino to manage and enhance the HCVs (e.g rehabilitation plantings within buffer zone, establishment of biological corridor etc) are documented


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

Compliance

Major

S03 Findings:

Evidence of management plan for HCV habitats and its conservation.

Objective evidence:

Based on the above-mentioned HCV assessment conducted, Carotino has established the management plan of the HCV habitat identified as well as its conservation. The management plan dated 16 November 2012 highlighted the values identified, the management plan and implementation status of plan. Values identified highlighted within the management plan are as follows:

Forest reserve adjacent to estates boundaries which are rich in natural species and habitats provide most of the biodiversities and major rivers within or adjacent to estates provide the floodplains, riverine forests and flood retention control to the estates;

Biological diversity within and around the estates. The group of estates


support at least 3 totally protected schedule 1 species, at least 5 protected (Game) Schedule 2 (I and II) species and at least 13 protected (other wild animals) schedule 2 species;

Rivers and streams flowing through the estate provide flood retention controls and water resources to the estates and also provide living ground for natural species and habitats;

Lake, ponds and wetlands provided natural resources and living ground for natural species and habitats;

Ecological requirements for the survival of some biodiversities;

Planting area with high risk of erosion.

In addition, the auditing team note that there is a general prohibition on hunting and fishing within the estate. Information signs are posted and the control practice is being effectively implemented.

Strengths include management of riverine buffers and recommendations for the restoration of vegetation along the riverbanks. This should improve the capacity of the soil in the buffer areas to attenuate agrochemicals in soil water before they can enter waterways as well as trap sediment in surface run-off. Restoration of vegetation should also help reinforce the banks against erosion from flood pulses.


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.

Compliance

Minor

S03 Findings:

Although there were evidence of a commitment to discourage any illegal or inappropriate hunting, fishing or collecting activities, and developing responsible measures to resolve human-wildlife conflicts, however there were some contradiction noticed.

Objective evidence:

The management of the individual estates has taken action to discourage any illegal or inappropriate hunting fishing or collecting activities. This is done through placing signages in appropriate locations and briefing workers.

However, during the visit to HL 1 , Sg Jekatih, there was a contradiction in the signboard placed at the Bridge.

One showed that it is allowed to fish and the other showed that fishing is disallowed.

Also there were some remnant of ‘cooking , burning or to ward off mosquitoes ‘ activity seen under the oil palm area close to the Sungai Jekatih buffer zone.

Observation 03


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. Compliance

Major

S03 Findings:

Availability of documented identification of all waste products and sources of pollution.

Objective evidence:

Carotino has prepared a ‘Wastes and Waste Products Identification and Disposal


Plan for Estates and Mills’ that identify waste generated from all identified activities within the management of the estates and mill, the location of source of wastes and prescribed methods for handling and disposal. The document F/007-01/2010 dated 03 September 2010 is made available to the auditor during the audit.


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

Compliance

Minor

S03 Findings:

Although there was an operational plan developed and implemented, to avoid or reduce pollution , there were some isolated cases of poor implementation

Objective evidence:

Operating procedures cover the management of wastes from agro-chemicals and their containers as well as material recovery is practiced through waste separation and recycling. These contribute towards the avoidance and reduction of pollution. Furthermore, the company also has established a “Guidelines on Waste Management” that describes the objectives and outline procedures for waste management on the estates. This includes wastes subject to regulated disposal as well as wastes from domestic, and other non-regulated sources. Among the omissions for waste products and sources, examples include: Green House Gases (GHG); disposal of buffalo carcases; building demolition and construction, etc.

Guidelines on Garbage Disposal also has been established specifying the method of garbage disposal, handling of waste materials, collection and disposal of waste material and records that need to be kept. The document F/006-01/2010 dated 19 July 2010 is made available to the auditing team during the Annual Surveillance Audit.

HL1

Chemical container : G Planter. Latest disposal on 17/7/12 of SW 409 items

Used Oi ( SW 305 ) l, Filter ( SW 410) : Hiap Huat chemicals Sdn Bhd . Latest on 31/12/12

However in the landfill in HL 1 , an empty box of the fungicide Ancom Thiram was found to be disposed in the landfill.

Observation 04


5.3.3 Evidence that crop residues / biomass are recycled (Cross ref. C4.2). Compliance

Minor

S03 Findings:

crop residues / biomass are recycled.

Objective evidence:

Refer to 4.2.3

EFB are transported and applied back to the estates within the Mill area.

Pruned fronds are stack along the inter-rows.



Criterion 5.4

Efficiency of energy use and use of renewable energy is maximized.

5.4.1 Monitoring of renewable energy use per tonne of CPO or palm product in the mill.

Compliance

Minor

S03 Findings:

Monitoring of renewable energy use per tonne of CPO or palm product in the mill available.

Objective evidence:

Ref : Mesocarp fiber file

Period Jan 2012 – Dec 2012

Mesocarp Fibre( MT ) 24054.83

FFB Processed ( MT ) 113,228.10

Mesocarp Fibre/ FFB x 100 21.24

Ref : Shell – Sale of Shell file ( 100 % of the shell is sold )


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

Compliance

Minor

S03 Findings:

Monitoring of direct fossil fuel use per tonne of CPO or kW per tonne palm product in the mill available

Objective evidence:

Ref : Direct Fossil Use & kW –Tonne CPO & PK records ( Jul 2010 – Nov 2012 )

The following are recorded :

a) Month Nov 2012

b) Total FFB, MT 11,537

c) Diesel , Litre 12,763

d) Total Turbine kWHr 227,000

Total Genset kWHr 45,360

Total turbine + Genset kW Hr 272,360

kWHr ( x10) 27,236

FFB Processing / MT FFB 20


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.

Compliance

Major

S03 Findings:

No open burning was found onsite.

Objective evidence:

The company advocates zero-burning policy during replanting


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

Compliance

Minor

S03 Findings:

Previous crop was found recycled onsite.

Objective evidence:

Previous crop is not removed from the field. It is felled, chipped and applied back onto the rows.


5.5.3 No evidence of burning waste (including domestic waste). Compliance

Minor

S03 Findings:

No evidence of burning was found onsite.

Objective evidence: No burning of waste


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 ref to C5.1). Compliance

Major

S03 Findings:

Documented plan is available.

Objective evidence:

Carotino has developed a ‘Guidelines on pollution mitigation plans for estates’ that act as a guidance for the developing, implementing and monitoring of appropriate plans for reducing pollution and emission in the estates. Key areas covered include: diesel storage, workshops, generators, tractors, used lubrication storage, chemical mixing, sewage leaks, siltation of drains, etc.

The revised Guidelines on Pollution Mitigation Plans for Estates –ver 3 (Doc ref F/009—03/2012) dated 26 July 2012 is available during the Annual Surveillance Audit. The document identifies pollution control measures against the following areas:

Diesel storage tank;

Diesel dispensing pump;

Vehicles repair and maintenance;

Parts washing area;

Workshop and washing ramp;

Generator set;

Diesel dispensing tank;

Generator house;

Stationary or moving vehicles;

POL, chemical and fertilizer;


Chemical pre-mix area;

Septic tank;

Rivers and field drains;

Narrow ravines on replanting areas;

Replanting fields;

Nursery;

EFB collection sites;

Landfill site;

Segregation and recycling;

GHG emission overall operation; and

Compost application field.

In addition, Guidelines on Garbage Disposal (F/006-01/2010) dated 19 July 2010 is also made available specifying the method of garbage disposal, handling of waste materials, collection and disposal of waste material and records that need to be kept.


5.6.2 Plans are reviewed annually. Compliance

Minor

S03 Findings:

The plans are reviewed annually.

Objective evidence:

The ‘Guidelines on pollution mitigation plans for estates’ is observed to be

periodically reviewed. The revised version of the document F/009—03/2012) dated 26 July 2012 is available during the audit.


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

Compliance

Minor

S03 Findings:

No peat.

Objective evidence:

No peat soil identified


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. Compliance

Major

S03 Findings:

Availability of a documented social impact assessment including records of meetings.

Objective evidence:

Documented Social and Environmental Impact Assessment (SEIA) dated 14


January 2009 is available stating a comprehensive documentation that includes impact identified following to the assessment, the mitigation measure and action to be taken to mitigate the impact as well as the maps and identification of communities of and stakeholders surrounding each estates. In addition, the assessment also includes maps identifying all the stakeholders. The impacts that has been highlighted are as follows:

Occupational safety;

Workers health;

Workers working condition;

Safety and health of women workers;

Workers wages;

Term of employment;

Workers living condition;

Labour contract; and

Other issues.


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

Compliance

Minor

S03 Findings:

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

Objective evidence:

All records of meetings, consultation takes place during the SEIA is incorporated in the assessment document. List of the stakeholders consulted are also available.


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

Compliance

Minor

S03 Findings:

Evidence of a timetable with responsibilities for mitigation and monitoring is reviewed and updated as necessary.

Objective evidence:

The revised Environmental and Social Improvement Plan dated 09 October 2012 specifies issues and strategies to be implemented on a yearly basis in relation to the social impact assessment. The action plan is found to be reviewed on a yearly basis. The Action Plan also specifies the responsible person to implement and the timeframe for the action plan to be conducted for each of the following identified aspects:

Provisions of employment opportunities to local communities;

Labour shortage;

Protection of workers safety and health;

Employees training; and

Provide better living and working condition.


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. Compliance

Major

S03 Findings:

Evidence of a documented consultation and communication procedures.

Objective evidence:

There is a Standard Operating Procedures (SOP) on Mechanisms for Communication and Consultation established for the purpose of conducting the consultation with employees and other stakeholders. The document E/004-02/2010 dated 05 October 2010 specifies the following identified mechanism for communication and consultation:

Joint Consultative Committee (JCC) be established covering the following items;

o Objectives of the committee;

o Membership of the JCC Meeting;

o Selection of Committee Representatives from Workers;

o Frequency of the Meeting i.e. once every three months;

o Agenda of the Meeting; and

o Action to be taken on matters discussed.

Complaints and Grievance Procedures:

o The document E/001-01/2008 dated 01 October 2008 has been established as a means to channel communication and consultation for the workers; other internal as well as external stakeholders to resolve any issues raised

Suggestion box:

o To be used as another means for communicating and consulting with workers as well as other external stakeholders;

o The Manager has been appointed as the designated person to open the box once every week to ensure the confidentiality of the correspondence. The correspondence also shall be filed separated from other correspondence.

Nominating the officer for handling the communication and consultation;

o Manager is the designated person as the main contact person responsible for any issues pertaining to communication and consultation.

In addition, the above document also specifies the mechanism for Gender Group Consultation covering the following elements:

Membership of the committee:

Selection of committee members and representatives from female workers;

o The company gives full liberty to the workers to elect their own representatives. All appointed committee members are found to have been officially appointed through evidence of appointment letter

Frequency of the meeting i.e. at least two times a year;

Agenda of the meeting; and

Action to be taken following matters discussed.


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

Compliance

Minor

S03 Findings:

A plantation management official at the operation unit is nominated to handle these issues


Objective evidence:

As stated in the above document, the Manager has been appointed as the designated person responsible for any issues pertaining to communication and consultation.


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

Compliance

Minor

S03 Findings:

List of stakeholders, records of all communication and records of actions taken in response to input from stakeholders are maintained.

Objective evidence:

List of stakeholders at estate and mill level as well as records of communication is available in the external communication record book. With regard to the list of stakeholders, Carotino maintained the stakeholders list that includes local banks, contractors, vendors, local community heads, local authority services, government agencies including the list for NGOs, neighbouring mills and estates etc.


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.

Compliance

Major

S03 Findings:

Evidence of documented process by which a dispute was resolved and the outcome.

Objective evidence:

There is a Standard Operating Procedures (SOP) on Mechanisms for Communication and Consultation established for the purpose of conducting the consultation with employees and other stakeholders. The document E/004-02/2010 dated 05 October 2010 specifies the following identified mechanism for communication and consultation:

Joint Consultative Committee (JCC) be established covering the following elements;

o Objectives of the committee;

o Membership of the JCC Meeting;

o Selection of Committee Representatives from Workers;

o Frequency of the Meeting i.e. once every three months;

o Agenda of the Meeting; and

o Action to be taken on matters discussed.

Complaints and Grievance Procedures:

o The document E/001-01/2008 dated 01 October 2008 has been established as a means to channel communication and consultation for the workers; other internal as well as external stakeholders to resolve any issues raised

In addition, the company also has established the SOP on Mechanism for Complaints and Grievances. The document E/001-02/2010 dated 15 September 2010 describes the following procedures:

Matters that could be considered as Grievances:

Matters that could not be considered as grievances:

Possible complainants of grievances:


Redress of grievances:

Freedom of retaliation:

General requirements:

Consolidation of grievance:

Initiating the grievance procedure for employees:

Closed meeting:

Time limit for grievances:

Records of grievances:

Corrective actions:

Administration

JCC Meeting is conducted on a periodically basis. Evidence of meeting conducted is available in the form of Minutes of Meeting. Based on records, since last Annual Surveillance Audit, Carotino has held the JCC meetings as follows:

Estates Date

Pahang 12 March 2012;

12 June 2012;

11 September 2012; and

19 December 2012.

Asia 13 April 2012;

19July 2012; and

10 October 2012

Hwa Li 26 March 2012;

27 June 2012;


18 December 2012


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

Compliance

Minor

S03 Findings:

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

Objective evidence:

The established grievance procedures specify the estimated time required to be taken for each of the process, to be addressed before proceed to the subsequent process. As stated in the documented procedures, all grievances need to be addressed within 10 working days.


6.3.3 The system is open to any affected parties. Compliance

Minor

S03 Findings:

The system is open to any affected parties.

Objective evidence:

Communication to the affected parties is evidenced. For instance, any internal social issues is communicated through either Gender Committee (for women issues) or during briefing during daily Muster Call or during the Safety and Health


Briefing. With regard to the external issues, the issues are communicated during the meeting with external stakeholders conducted between the estates/mill and the relevant stakeholders.


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.

Compliance

Major

S03 Findings:

Availability of established procedure for identifying legal and customary rights and a procedure for identifying people entitled to compensation.

Objective evidence:

A revised version of SOP for Identifying Legal and Customary Rights and Identifying People Entitled to Compensation (E/002-02/2012) dated 11 September 2012 is made available to the auditor during the audit.

The SOP included the following elements:

Procedure for Identifying Legal and Customary Rights:

Procedure for Calculating and Distributing Fair Compensation: and

Documentation on outcome of compensation.


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.

Compliance

Minor

S03 Findings:

A procedure for calculating and distributing fair compensation (monetary or otherwise) is established and implemented.

Objective evidence:

Section 3.0 of the above-mentioned SOP document specifies the procedures that need to be employed for calculating and distributing land claims covering the ownership, claim rights and access to land as well as period of settlement of local communities on the claimed areas.

In addition, the procedure also describes the means in resolving the grievance that covering the usage of arbitrator and legal means if the issues cannot be resolved by direct negotiations.


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

Compliance

Minor

S03 Findings:

There is no reported case of dispute with any parties which have resulted in payment of compensation ever occurred.

Objective evidence:

There is no reported case of dispute with any parties which have resulted in payment of compensation ever occurred. The individual estates recognised


management by customary users and provide material support for the maintenance and places of worship (Muslims, Chinese and Hindu) located within the estate’s land.


Criterion 6.5

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

6.5.1 Documentation of pay and conditions. Compliance

Major

S03 Findings:

Documented pay and conditions is available.

Objective evidence:

Guidelines on Terms and Conditions of Employment for Estate Workers are available. The guidelines (E/007-02/2011) dated 01 July 2011 include the following elements:

contract agreement,

wages and other employment benefits,

workers’ repatriation, and

workers’ passport.

In addition, the Employment Agreement and related conditions is available. Furthermore, the company also has established a terms of reference or signed contracts between employers and employees stipulating among others the following items:

workers reference no.;

name of the workers;

IC no.;

Date of birth;

Permanent address;

position of the workers,

working hours,

Position/occupation,

Date of commencing employment;

Rate of wages,

Overtime and other allowances,

holidays,

rest days,

annual leave,

fringe benefits, and

dismissal.

As for the foreign workers, personnel information is kept in appropriate file with details on the rate of payment and benefits. For foreign workers, employment contract kept contain details of the following information:


name of the worker;

passport no.;

date of birth;


nationality;

date of commencing employment

Position/occupation,

minimum basic wages,

shift allowance;

dismissal;

average overtime per month,

yearly medical check-up,

leave benefits; and

insurance.

Clear and transparent remuneration system is in place. Workers were issued with pay slips every time salary payment is made where wage and deduction made is clearly printed. In the estates, the wage rates of different categories of harvesting activities are available. The wage rates may differ slightly between estates depending on the terrains and difficulty of task. In practice, the payslips states the following:

name;


IC no. (local workers);

passport no. (foreign workers);

workers position;

bayaran cuti umum;

elaun kehadiran;

gaji harian;

kerja lebih masa;

faedah sementara;

vacation leave pay;

deduction i.e. advance request, KWSP and SOCSO (local workers);

Several payslips for harvester and sprayer workers are inspected. In general, harvester workers receive between RM 1,500 to RM 3,000 depending on how much tonnage of FFB harvester while sprayers and manurers receive between RM 1,200 to RM 2,500.


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.

Compliance

Minor

S03 Findings:

Evidence of labour laws, union agreements or direct contracts of employment detailing payments and conditions of employment that are available in the language understood by the workers or explained carefully to them by a plantation management official in the operating unit.

Objective evidence:

The employment documents are established and made available in both English and Malay language. With regard to the foreign workers, the documents are


articulated to them via the mediator which is their senior who is able to speak in Malay. The employment documents that are verified are as follows:

Employment Agreement;

Terms of reference;

Signed contracts between employers and employees;


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).

Compliance

Minor

S03 Findings:

Adequate housing, water supplies, medical, educational and welfare amenities provided to workers.

Objective evidence:

Workers have access to clean water, segregated sanitary and bathing facilities and electricity. All employees are given adequate housing, medical, educational and welfare amenities and waste disposal facilities in accordance with Workers’ Minimum Standard of Housing and Amenities Act. Disposal of domestic solid wastes at the linesite is conducted at least twice a week. In addition, the company also encouraged and promotes on the segregation and recycling of domestic wastes at the line sites and work places.


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.

Compliance

Major

S03 Findings:

Documented minutes of meetings with main trade unions or workers representatives are available.

Objective evidence:

Based on records, Carotino has conducted several JCC meetings as follows:

Estates Date

Pahang 12 March 2012;

12 June 2012;


19 December 2012.

Asia 13 April 2012;

19July 2012; and

10 October 2012

Hwa Li 26 March 2012;

27 June 2012;



18 December 2012


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

Compliance

Minor

S03 Findings:

A published statement in local languages recognizing freedom of association is available.

Objective evidence:

In all estates and mill, a published statement in local language recognising freedom of association was placed on the notice board of the management office. The statement reads “Pekerja-pekerja bebas untuk mengikut atau menyertai mana-mana agensi berdaftar di bawah undang-undang Malaysia. Kenyataan ini adalah sebagai tambahan kepada kontrak pekerja yang sedia ada. Daripada Pihak Pengurusan”.


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. Compliance

Major

S03 Findings:

Documented evidence that minimum age requirement is met is available.

Objective evidence:

No evidence of underage workers. The company maintained a complete list of workers with the qualification age information.

Carotino has a policy that does not employ persons under 16 years old. Verification within the employment and personal information of workers records evidenced that all workers employed within the mill and estates are above 16 years old hence confirming that there is no evidence of use of child labour within the company’s mill and estate operation.

Based on employment records, the youngest registered worker employed in the mill and estates are 21 years old (foreign worker) and 39 year old (local Malaysian worker).


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. Compliance

Major

S03 Findings:

A publicly available equal opportunities policy is available.

Objective evidence:

No cases of discrimination are reported.


Equal Opportunities Policy is documented and is translated into the Malay language (Polisi Kesamaan Peluang) and placed on the notice boards of the management offices. Observations indicated that the policy is put into practice


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

Compliance

Minor

S03 Findings:

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

Objective evidence:

There is no evidence which confirmed the discrimination against foreign workers. Based on records, the auditing team observed that equal opportunities are demonstrated through the following issues:

similar daily wages for foreign workers and local workers.

working hours where similar treatment is given between both the foreign and local workers.

On basic aminities whereby both foreign and local workers received similar facilities.

Well representation of JCC Meeting between both foreign and local workers

Well representation of Gender Committee meeting between foreign and local workers


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.

Compliance

Major

S03 Findings:

A policy on sexual harassment and violence and records of implementation is available.

Objective evidence:

Sexual Harassment Policy is in place and displayed. The policy was also written in the Malay language and displayed on the notice boards. No evidence or practices that contradict this policy were observed. Discussion with female staff shows that the company provide fair and just treatment to women.

In addition there is a gender committee and a nominated gender representative established at all estates and mill. Based on records, the meeting conducted since last Annual Surveillance Audit for visiting estates are as follows:

Estates Date

Pahang 21 May 2012; and

12 October 2012.

Asia 24 April 2012;

17 July 2012; and

05 October 2012

Hwa Li 19 June 2012; and

17 December 2012;



6.9.2 A specific grievance mechanism is established. Compliance

Major

S03 Findings:

A specific grievance mechanism is established.

Objective evidence:

A SOP on “Mechanism for the Prevention and Eradication of Sexual Harassment and Violence in the Work Place” is also in place. The SOP E/003-01/2008 dated 01 October 2008 includes the following mechanisms and procedures:

preventing sexual harassment in workplace,

rationale,

Definition of sexual harassment,

forms of sexual harassment,

strategies to prevent sexual harassment,

o Clear sexual harassment policy,

o monitoring the work place on a regular basis,

o To consider highly on all complaints,

guidelines for handling complaints on sexual harassment.


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. Compliance

Major

S03 Findings:

Carotino palm oil mill only processes FFB sourced from own plantation as such the company does not deal with smallholders and the company carries out all operations within the estates.

Objective evidence:

Not applicable.


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

Minor

S03 Findings:


Objective evidence:

Not applicable.


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

Compliance

Minor


S03 Findings:


Objective evidence:

Not applicable.


6.10.4 Agreed payments shall be made in a timely manner. Compliance

Minor

S03 Findings:


Objective evidence:

Not applicable.


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.

Compliance

Minor

S03 Findings:

Evidence of demonstrable contributions to local development that are based on the results of consultation with local communities.

Objective evidence:

The individual estates and the mill have a very basic form of corporate social responsibility (CSR), which usually involves stakeholders, especially the local communities and workers. In general, the following events and contributions has been rendered by the company:

religious celebrations;

Opportunities for employment for local communities;

family day,

estate school children education aid

blood donation;

medical check-up for malaria and filiarisis diseases; and

sports day.

All activities and contribution rendered are recorded for each of the financial year.


P7: 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.


P8: COMMITMENT TO CONTINOUS IMPROVEMENT IN KEY AREAS OF ACTIVITY

Criterion 8.1

Growers and millers regularly monitor and review their activities and develop and implement action plans that allow demonstrable continuous improvement in key operations.

8.1.1 Minimise use of certain pesticides (C4.6). Compliance

Major

S03 Findings:

Chemical is monitored individually eg herbicides.

Objective evidence:

POPE 1:

- Reduce Circle Spraying round

- Planting more cassia cabanensis to control bagworms through Goryphus bunor

- To install 49 units new barn owls at PM08/09A & PR 11 A to reduce the use of rat bait.

Hwa Li :

- Reduce Circle Spraying (2.25 rounds) and Selective Spraying ( 01 round) by using same concentration .

To extent predator host plant plantings to all matured area as a biological control for all leaf eating caterpillars.


8.1.2 Environmental impacts (C5.1). Compliance

Major

S03 Findings:

Objective evidence:

POPE 1:

- River Water Quality Analysis

- Planting more jungle trees on hill slope & riparian reserve

- To remarking buffer zone and put more signboards especially at the riparian area to educate the stakeholder.

Hwa Li:

Establishment of riparian buffer zone by continue planting of local trees ( Ara spp) for barren spot at Jekatih River

The group has also :

More recycle bins located

Planting of Guatemala grasses expanded on river banks


8.1.3 Maximizing recycling and minimizing waste or by-products generation. Compliance

Major

S03 Findings:

Objective evidence:

POPE 1:

- Disposed off the empty herbicide container through licensed collector.

- Apply EFB for mulching

Hwa Li:

Continue to improve waste segregation and recycling by provided awareness


training from time to time to ensure recycling program being implemented successfully.


8.1.4 Pollution prevention plans (C5.6). Compliance

Major

S03 Findings:

Objective evidence:

POPE 1:

- Maintenance of chemical trap, lubricant & diesel trap in good condition ( monthly maintenance)

- To construct one unit washing bay at the workshop to prevent any lubricant oil flow into the soil during vehicle washing.

Hwa Li :

No plan related to pollution prevention recorded

For the Mill

A CDM biogas project is planned to be commission in mar 2013 to capture the methane gas from the waste water

The gas will eventually be used in a gas engine to produce electirity for the domestic use.

500 kw / day is the estimated power to be generated from the project.


8.1.5 Social impacts (C6.1). Compliance

Major

S03 Findings:

Objective evidence:

POPE 1:

- Upgrading the Club House and shop

- Repainting programme of staff bungalow, canteen, Community Hall and 18 units of labourer quarters.

- School education aids

- Upkeep the labour lines ( quarters and facilities

Hwa Li:

- Revision of workers earning

- Install rain harvesting gutter and water tanks at 20 units labour quarters

- Repairs and upgrading labour quarter’s toilet

The Group has also :

Annual sport day for estate residents

Painting at workers quarters

Major repair on estate shop


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

Compliance

Minor


S03 Findings:

The mechanism to capture the performance and expenditure in social and environmental aspects are in the budget.

Objective evidence:

Hwa Li:

Implementing of New Accounting Software System for easy tracking of all expenditure in social and environmental aspects.

As for AOPE 1, they have allocated the following as their continuous improvement plan:

Staff Quarters Upkeep & Repairs 18,600.00

Labour Lines Painting & Repair 97,840.00

Estate Annual Kenduri 5,500.00

Sundry Buildings Repair & Upkeep 33,331.00

For the environment

5000 Gallon New Water Tank for Labour Quarters

40,000.00

18 Units 0f 400 gal Water Tank 7,920.00

57 New Barn Owl Boxes 8,000.00

Hosplant Planting 7,245.00

Bufferzone Upkeep 7,031.00

Rotoslashing 30,455.00

New Spray Pumps and Regular Maintenance of Spraying Pump

2,350.00


3.1.1 Supply Chain

For supply chain, the Carotino Palm Oil Mill has decided to use Module D in this

assessment. The findings and objective evidence find during the assessment are outlined

in the table below. The results for each indicator from each of the operational areas were

evaluated to provide an assessment of conformity. A statement is provided for each of the

RSPO indicators in order to support the findings of the assessment team.

Palm Oil Product Categories Approximate Annual Purchases ( July 2011 – Jun3 2012 )

Purchased FFB 101,543.48 MT / yr

Sale as RSPO Certified CPO Produced : 20,471.239 MT/yr

PK Produced : 5,388.075

Despatched : 6476.56 MT /yr

Module D: Segregation

Module D.1: Documented Procedures

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

D.1.1.1 Complete and up to date procedures covering the implementation of all the elements in these requirements


Findings In compliance: Yes: X No:

Objective evidence:

Procedures has been updated to cover the implementation of all the elements in these requirements

SOP for RSPO SCC : Standard Mass Balance Calculation-1st July 2012

D.1.1.2 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.


Objective evidence:

The Mill manager , R.Nadarajah 12/12/2011 has a Job Description that he is responsible for the CoC / traceability , safety health, social and environment documentation

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


Objective evidence:

The POM only received FFB from their supply base estates

Recorded in the ‘Receiving Slip ‘ & FFB Delivery Note

Example

a) Receviing slip FFB13000235W

b) Date: 6/1/2013

c) Weight : 6.48 MT

d) Product: FFB

e) Supplier: Asia Oil Palm Estate

FFB Delivery Note : 93353

Module D.2: Purchasing and Goods In

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


Objective evidence:

The facility receives only from the supply base estates and the figures are documented in the

a) Daily report

b) Final figure for the month

c) Quarterly sustainability Products ( Oct – Dec 2012 )

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


Objective evidence:

The facility has procedure to inform CB on overproduction.

This is found in the ‘Mechanism for handling Non-conforming FFB 4th Sept 2012‘ Doc No: MEC-

01/2012-CPOM

Module D.3: Record Keeping

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


Objective The facility maintain accurate , complete up to date and accessible records of all aspects of these


evidence: requirements.

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


Objective evidence:

Records and reports retention time is 5 years.

Criterion D.3.3: 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.


Objective evidence:

Monthly records available and three month summary is in the record.

Criterion D.3.4: The following trade names should be used and specified in relevant documents (e.g. purchase and sales contracts, *product name*/SG or Segregated). The supply chain model used should be clearly indicated.


Objective evidence:

The product name/SGS is available in the documents such as the invoices.

Module D.4: Sales and Good Out

Criterion D.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


Objective evidence:

The facility despatches the product to Carotino Refinery Sdn Bhd , Pasir Gudang for their sales. POM documentation will state that the product is despatched.

a. The name and address of the buyer: Carotino Sdn Bhd

b. The date on which the invoice was issued : Invoice not issued by the CPOM but by the HQ Accounts Dept. The CPOM only receives a contract for delivery of certain quantity . for example Nov 8 , 2012, they receive an email stating the quantity : 2,800 MT CPO ubder the contract No: CA/3169/11/12. This contract reference is stated in the CPOM Despatch slip . Example in the Ticket No: CPO13000006W dated 3/1/2013.

c. Also recorded in the Palm Oil Contract Card

d. Description of product: As per the Despatch slip above: CPO (CSPO/SG )

e. Transport documents include: Purchase weighing slip ( P011494) , MPOB Form L3 ( 4748729),, CPOM Palm Oil DO ( 22638 ), Trasporter DO 2711 ( Hup Shing Berjaya Enterprise) , Seal / Gate pass, & Shipping Announcement RSPO

Module D.5: Processing

Criterion D.5.1: The facility shall assure and verify through clear procedures and record keeping that the RSPO certified palm oil is kept segregated from non-certified material including during transport and storage and be able to demonstrate that is has taken all reasonable measures to ensure that contamination is avoided. The objective is for 100% segregated material to be reached. The systems should guarantee the minimum standard of 95% segregated physical material; up to 5% contamination is allowed.


Objective evidence:

The facility receives only SG material only.


Criterion D.5.2: The facility shall provide documented proof that the RSPO certified palm oil can be traced back to only certified segregated material.


Objective evidence:

The facility receives only SG material only.

Criterion D.5.3: In cases where a mill outsource activities to an independent palm kernel crush, the crush still falls under the responsibility of the mill and does not need to separately certified. The mill has to ensure that:

a) The crush operator conforms to these requirements for segregation

b) The crush is covered through a signed and enforceable agreement


Objective evidence:

No outsourcing except transport

CPOM sells the PK to Lee Oil and Sang Kee who are kernel crushing plant.

Module D.6: Training

Criterion D.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:

Supply chain training conducted on traceability

a) WB ( 29/11/12)

b) Pressing Station ( 27/11/12 )

c) Storage Tank ( 11/12/12 )

Training plan July 2012 – Jun 2013 is found in the Training master file

Module D.7: 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: No: X

Objective evidence:

No claims yet at the moment.

3.2 Summary of findings

In this surveillance 03, there were evidences presented, documented as well shown in the field the

Observation raised during the previous audit were closed.

During this audit, 0 CARs and 4 new Observations were raised at the close of the audit..

There being no Major CARs issued and in view that excellent progress has been made on closing out

of the Observations, it is recommended that this unit remain certified.

3.3 Maintenance of certification

During the surveillance evaluation, it is assessed if there is continuing compliance with the

requirements of the MYNI. Any areas of non-conformance are raised as one of two types of

Corrective Action Request (CAR):


Major CARs - which must be addressed and closed out urgently with an agreed short time frame

since the organisation is already a certified organisation. Failure to close out within the agreed time

frame can lead to suspension of the certificate.

Minor CARs - This must be addressed within an agreed time frame, and will normally be checked at

the next surveillance visit

The full record of CARs raised over the certification period is listed under section below. The table below provides a progressive summary of findings for each surveillance.

SURVEILLANCE 1

Issues that were hard to assess

The outstanding CAR relates to official designation of boundaries and boundary markers. Due to procedural regulations of local authorities, the survey process proceeds slowly with full cooperation from the company.

Number of CARs closed 7 Outstanding CARs were closed.

Nr of CARs remaining open 1 Outstanding CAR from previous evaluation was not closed.

New CARs raised 2 New Minor CARs were raised.

Certification Decision The management of the oil palm mill and estates of Carotino Sdn. Bhd. remains certified as:

The management system is capable of ensuring that all of the requirements of the applicable standard(s) are met over the whole certification unit covered by the scope of the evaluation; and

The certificate holder has demonstrated, subject to the specified corrective actions, that the described system of management is being implemented consistently over the whole certification unit covered by the scope of the certificate.

SURVEILLANCE 2


No issues that were hard to assess were found. . The surveillance 02 visit focused on reviewing the records and documents pertaining to the compliance to the P&C requirements of the RSPO. Field visits were done to confirm Carotino Sdn Bhd complying to the RSPO P&C.

Carotino Sdn Bhd was found to be committed and has acted on the CARs and Observations raised during the previous audit.

Number of CARs closed 3 Outstanding Minor CARs and 1 Observation were closed.

Nr of CARs remaining open 0 CARs remain open

New CARs raised 1 New Minor CAR and 4 new observation were raised.

Number of CARs closed The Minor CAR was immediately closed before the next surveillance

Certification Decision In view of the findings, we recommend the management of the oil palm mill and estates of Carotino Sdn Bhd remains certified as:



SURVEILLANCE 3


No hard issues were found. . The surveillance 03 visit focused on reviewing the records and documents pertaining to the compliance to the P&C requirements of the RSPO. Field visits were done to confirm Carotino Sdn Bhd complying to the RSPO P&C.

Carotino Sdn Bhd was found to be committed and has acted on the CARs and Observations raised during the previous audit.

Number of CARs closed 0 Outstanding Minor CARs and 4 Observation were closed.

Nr of CARs remaining open 0 CARs remain open


New CARs raised 0 New Minor CAR and 4 new Observation were raised.

Number of CARs closed No CARs raised

Certification Decision In view of the findings, we recommend the management of the oil palm mill and estates of Carotino Sdn Bhd remains certified as:



3.4 Status of non-conformities

No CARs were raised during the audit. Only 4 observations were issued

3.5 Certified organisations acknowledgement of internal responsibility

It is acknowledged that the assessments cited in this surveillance report have been carried out as

stipulated and we confirm the acceptance of the assessment report contents including

assessment findings.

End of Public Summary


APPENDIX A: CORRECTIVE ACTION REQUEST & OBSERVATION

No CARs during SA3

List of Observations

OBS # Indicator Observation Detail

01 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

Date Recorded>

7 Jan 2013 Date Closed>

Observation:

Water courses and wetlands are maintained but with some isolated oversight

Nevertheless in AOPE1, there were some spraying done within the buffer zone. Field A7

Follow-up evidence:

02 4.7.1 There were some evidence that Occupational Safety Health (OSH) plan which is in compliance with OSH Act 1994 and Factory and Machinery Act 1967(Act 139) was not followed through

Date Recorded>


Observation:

However in HL 1, the worker at the genset room forgot to use the ear plug during operation.

Observation 02 Raised

Follow-up evidence:

03 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

Date Recorded>


Observation:



The management of the individual estates has taken action to discourage any illegal or inappropriate hunting fishing or collecting activities. This is done through placing signages in appropriate locations and briefing workers.

However, during the visit to HL 1 , Sg Jekatih, there was a contradiction in the signboard placed at the Bridge.

One showed that it is allowed to fish and the other showed that fishing is disallowed.

Also there were some remnant of ‘cooking , burning or to ward off mosquitoes ‘ activity seen under the oil palm area close to the Sungai Jekatih buffer zone.

Observation 03 Raised

Follow-up evidence:

04 5.3.2 Although identified waste and pollutants, some practices are still practice that

increases risk of pollution

Date Recorded>


Observation:

Operating procedures cover the management of wastes from agro-chemicals and their containers as well as material recovery is practiced through waste separation and recycling. These contribute towards the avoidance and reduction of pollution. Furthermore, the company also has established a “Guidelines on Waste Management” that describes the objectives and outline procedures for waste management on the estates. This includes wastes subject to regulated disposal as well as wastes from domestic, and other non-regulated sources. Among the omissions for waste products and sources, examples include: Green House Gases (GHG); disposal of buffalo carcases; building demolition and construction, etc.

Guidelines on Garbage Disposal also has been established specifying the method of garbage disposal, handling of waste materials, collection and disposal of waste material and records that need to be kept. The document F/006-01/2010 dated 19 July 2010 is made available to the auditing team during the Annual Surveillance Audit.

HL1

Chemical container: G Planter. Latest disposal on 17/7/12 of SW 409 items

Used Oil (SW 305 ) l, Filter ( SW 410) : Hiap Huat chemicals Sdn Bhd . Latest on 31/12/12

However in the landfill in HL 1, an empty box of the fungicide Ancom Thiram was found to be disposed in the landfill.

Observation 04 – Raised

Follow-up evidence:


APPENDIX B: NON-CONFORMITIES PREVIOUSLY IDENTIFIED

List of Observations


04 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) lacking

Date Recorded>

6 March 2012 Date Closed> 7 Jan 2013

Observation:

Evidence of silted drains and clogged culvert.- HL2

Follow-up evidence:

GPS Map indicating location of cement culverts in the estate as a monitoring control

Bridges and culverts record kept for monitoring

Silted drains were de-silted according to programme

( Observation 04 - Closed)

05 4.7.1 Incomplete evidence of documented Occupational Safety Health (OSH) plan

which is in compliance with OSH Act 1994 and Factory and Machinery Act

1967(Act 139)

Date Recorded>

07 March 2012

Date Closed> 7 Jan 2013

Observation:

a) Leaking Ointment inside the first aid kit & causing contamination of the bandage and rusted the scissors - MRE

b) Another mandore used a shampoo container to fill the solution of the leaky ointment bottle.-MRE

c) Mosquitoes larvae was found breeding in stagnant water on a parked trailer – POPE

Follow-up evidence:

First Aid Kit-Regular check by HA to ensure first aid kit in proper condition

Equipments and medicines arranged properly and kept cleanly in the first aid kit

Briefing given to all the first aid kit holders to check the contain daily

Perforated at front edge of all the trailers to drain out water in a way to avoid stagnant water

(Observation 05 – Closed )

06 4.8.1 A training programme (appropriate to the scale of the organization) that includes regular assessment of training needs and documentation, including records of training for employees are kept- training on safety not observed by worker

Date Recorded>


Observation:



Empty chemical container found at one home for domestic use although memo has inform workers against the use.-AOP1

Evidence of spraying found in area where they were signage informing workers not to spray.- AOP1

Follow-up evidence:

More signage were fixed in strategic places to instill awareness among estate residents to not use chemical containers

Briefing given to workers to not re-use chemical containers

Briefing given to the estate shopkeeper to not use chemical container as a petrol container or for domestic use

Black container provided to field conductors and mandores to avoid use of chemical container as a petrol container

Frequent training provided to sprayers and manurers to instill awareness on buffer zone conservation

More signboards fixed at buffer zones to alert people in the estate as well as outsiders

Visible marking at buffer zone area for ease identification

( Observation 06 – Closed)

07 5.3.2 Although identified waste and pollutants, some practices are still practice that

increases risk of pollution

Date Recorded>


Observation:

Diesel leaking from parked tractor during driver’s break time – HL2

( Observation 07 – Raised )

Follow-up evidence:

Field staff checking the tractors before muster call to ensure no leakages

Training given to all the tractor drivers to report immediately to estate management if any leakages on tractor

Signboards fixed at vehicle parking site to remind drivers to report immediately to estate management if there is any leakages at vehicle.

Vehicle maintenance records monitored in the workshop to ensure all the vehicles have been serviced monthly

( Observation 07 – Closed )


APPENDIX C: TIMEBOUND PLAN