RSPO CERTIFICATION ASSESSMENT PUBLIC · PDF fileJl. Let. Jend. TB Simatupang Kav. 88 ... Figure 9 Barn owl propagation for biological rat control ... finalized and approved by reviewer

PT. TÜV NORD Indonesia

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UPOIC AUDIT REPORT 090113 - finalized and approved by reviewer Page 1 of 62

RSPO CERTIFICATION ASSESSMENT

PUBLIC SUMMARY REPORT


System Certification Management

Has assessed

UNITED PALM OIL INDUSTRY PUBLIC COMPANY LIMITED

Krabinoi Mill and its Supply Bases

for Compliance to RSPO Principles and Criteria

for Sustainable Palm Oil Production

Date of assessment:

June 26 – 29, 2012

Report Number: P&C-1-127

Head Office

System Certification Management

Perkantoran Hijau Arkadia Tower F,

7th Fl Suite 706

Jl. Let. Jend. TB Simatupang Kav. 88

Jakarta 12520 – Indonesia

Tel : +6221 7883 7338

Fax : +6221 7883 7336

Laboratory Division

Jl. Jababeka XVII E Blok U No. 27B

Kawasan Industri Jababeka I Cikarang Bekasi 17530 – Indonesia

Tel : +6221 898 403 18 – 19

Fax : +6221 898 403 20

Branch Office

Intiland Tower 11th

Fl, Suite 1E

Jl. Panglima Sudirman 101-103

Surabaya 60271 - Indonesia

Tel : +6231 53 444 54

Fax : +6231 53 4 44 82

President Director:

Mr. Robert Napitupulu

Email: [email protected]

Website: www.tuv-nord.com or www.tuev-nord.de

mailto:[email protected]

http://www.tuv-nord.com/

http://www.tuev-nord.de/


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List of Contents

1 Scope of The Certification Assessment .............................................................................................................. 4

1.1 Type of Assessment (Mill, Estate and Mill, etc.) ..................................................................................... 4

1.2 Location, mill, and or hectare statement ................................................................................................ 4

1.3 Description of Mills and Its Supply Bases (Fruit Sources) ...................................................................... 5

1.3.1 Description of Mill(s) .................................................................................................................. 5

1.3.2 Description of Estate (Fruit Sources) ........................................................................................ 5

1.4 Date of Planting and Cycle .................................................................... Error! Bookmark not defined.

1.4.1 Year of planting for 7 estates during before 1981-2011 ........... Error! Bookmark not defined.

1.4.2 Five year replanting program for each estate from 2013 to 2017. .......................................... 14

1.5 Other Certifications Held (ISO, etc.) ..................................................................................................... 15

1.6 Organizational Information/Contact Person ......................................................................................... 16

1.7 Tonnages Certified ............................................................................................................................... 16

2 Assessment Process ......................................................................................................................................... 16

2.1 Assessment Methodology (Program, Site Visits) ................................................................................. 16

2.1.1 General Overview .................................................................................................................... 16

2.2 Date of Next Surveillance Visit ............................................................................................................. 18

2.3 Lead Assessor/Assessment Team ....................................................................................................... 19

2.3.1 Lead Assessor: Anita Masduki ................................................................................................ 19

2.3.2 Assessment Team Members ................................................................................................... 20

2.4 Certification Body ................................................................................................................................. 24

2.5 Outline of How Stakeholder Consultation Was Managed .................................................................... 25

2.5.1 Summary ................................................................................................................................. 25

2.5.2 List of Contacted Stakeholders ............................................................................................... 26

3 Assessment Findings ........................................................................................................................................ 28

3.1 Summary of the Findings by Criteria .................................................................................................... 28

3.2 Identified Non Conformances ............................................................................................................... 49

3.2.1 Detail of Non Conformity ......................................................................................................... 49

3.3 Issues Raised by Stakeholders ............................................................................................................ 57

4 Certified Organization’s Acknowledgement of Internal Responsibility .............................................................. 59

4.1 Formal Sign-off of Assessment Findings .............................................................................................. 59


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List of Figures

Figure 1-1 Location of Krabinoi mill and its supply bases ............................................................................................................ 6

Figure 1-2 Geographical Map of Krabinoi Estate ......................................................................................................................... 7

Figure 1-3 Geographical Map of Khaopanom Estate ................................................................................................................... 8

Figure 1-4 Geographical Map of Khaokhen Estate ...................................................................................................................... 9

Figure 1-5 Geographical Map of Kohnoi Estate ......................................................................................................................... 10

Figure 1-6 Geographical Map of Banmak Estate ....................................................................................................................... 11

Figure 1-7 Geographical Map of Khian Sa Estate ...................................................................................................................... 12

Figure 1-8 Geographical Map of Chaiburi Estate ....................................................................................................................... 13

Figure 2 Replanting implementation ........................................................................................................................................... 13

Figure 3 Fertilizer application by mechanical spreader in the estate .......................................................................................... 13

Figure 4 U-stacking of pruned fronds in the palm inter-rows ...................................................................................................... 13

Figure 5 Fragile soil map obtained from topography map of Royal Thai Survey Department .................................................... 13

Figure 6 Planting terraces constructed along contours for sloping areas ................................................................................... 13

Figure 7 The application of POME in the estate ......................................................................................................................... 13

Figure 8 Weir construction to dam up water ............................................................................................................................... 13

Figure 9 Barn owl propagation for biological rat control ............................................................................................................. 13

Figure 10 Personal safety equipment for worker who sprays agrochemical .............................................................................. 13

Figure 11 Health check up during 17-20 October 2011 .............................................................................................................. 13

List of Tables

Table 1-1 List of independent grower ........................................................................................................................................... 5

Table 1-2 Description of supply base (fruit sources) .................................................................................................................... 5

Table 2-1 Audit Schedule ........................................................................................................................................................... 17

Table 2-2 List of Stakeholder surrounding Krabinoi mill and its supply bases ............................................................................ 26

Table 3-1 Summary of Findings by Criteria ................................................................................................................................ 28

Table 3-2 Resume of Audit Results ............................................................................................................................................ 57


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1 Scope of the Certification Assessment

1.1 Type of Assessment (Mill, Estate and Mill, etc.)

The assessment was conducted to a palm oil mill and its supply bases owned by United Palm Oil Industry Public Company Limited

(hereinafter is called by UPOIC) which is located at 98 Moo .6 , Nuaklong-Khao Phanom Road, Huayoong, Nuaklong District, Krabi 81130 –

Thailand, using Thai National Interpretation (TH-NI) on Indicators and Guidance ver. June 7, 2011

1.2 Location of Mill and Estates

Name of Mill and Estate

Location

GPS (UTM)

Point I Point II Point III Point IV

N E N E N E N E

Krabinoi mill 98 Moo.6, Nuaklong-Khao Phanom

Road, Huayoong, Nuaklong District, Krabi 81130 Thailand

502469.14 901754.38 503018.01 901650.48 502601.16 901325.91 502990.22 901236.10

Krabinoi Estate 78 Moo 4, T. Krabi Noi, A.Muang, Krabi 01118

497834.57 903098.39 500926.79 902909.30 496604.39 899916.96 501000.71 900876.08

Khaopanom Estate

78 Moo 8 T. Khao Phanom, A. Khao Phanom, Krabi 01118

506302.70 911554.22 508476.72 911340.40 507690.07 908825.48 510220.39 908683.20

Khaokhen Estate 68 Moo 4, T. Kerewong, A. Plaipraya, Krabi 01168

477618.07 937437.65 478717.83 937398.86 477737.90 936264.81 478647.17 936820.80

Kohnoi Estate 75/5 Moo 2, T.Bangsawan, A. Prasaeng, Surat Thani 84210

498106.49 952872.40 499900.50 952178.28 497983.26 949973.80 499838.68 949973.08

Banmak Estate 157 Moo 6, T.Bangsawan, A. Prasaeng, Surat Thani 84210

491863.84 954529.02 492930.79 954473.35 491685.26 950279.36 492446.23 950369.87

Khian Sa Estate 153 Moo13, T.Bansadet, A. Khiansa, Surat Thani 84260

513762.40 971609.52 514833.08 970620.56 513561.95 963818.54 515203.74 964065.21

Chai Buri Estate 68 Moo 5, T.Chaiburi, A. Chaiburi Surat Thani 84260

499942.65 933420.59 502550.39 933030.56 500475.54 929166.95 502870.04 928847.89

See Error! Reference source not found. below.


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1.3 Description of Mill and Its Supply Bases (Fruit Sources)

1.3.1 Description of Mill

Name of Mill Annual Output (ton) Mill Capacity

(ton/hour) CPO PK

Krabinoi Mill 20,000 5,000 75

This data were based on budgeted production in 2012

1.3.2 Description of Supply Bases (Fruit Sources)

Fresh Fruit Bunch (FFB) for Krabinoi mill is supplied by seven (7) estates owned by UPOIC. Independent

growers are also supplying FFB but not included within this certification. There was no contract to bind the

listed independent growers (see Table 1-1) and UPOIC. The independent growers have the right to supply

their FFB to any mill depend on the gate price of each mill. In calendar year 2011, each estate with its

respective planted area had supplied FFB to Krabinoi mill as shown below:

Table 1-1 Description of supply base (fruit sources)

Above data were based on actual production in year 2011

Table 1-2 List of independent grower

Number of independent grower Location Total Area (ha)

6 Khao Phanom 54.48

8 Huayyoog 63.68

1 Na Khao 2.4

Total area owned by independent grower 120.56

Name of Estate Area (ha) FFB Production

(ton/year) Total Planted

Krabinoi Estate 1,212.64 1,145.67 19,000

Khaopanom Estate 837.08 830.59 14,000

Khaokhen Estate 491.56 458.16 9,500

Kohnoi Estate 601.19 592.24 7,000

Banmak Estate 595.36 573.18 8,500

Khian Sa Estate 1,381.07 1,354.79 26,000

Chai Buri Estate 2,125.4 2,061.04 45,000

Total 7,244.30 7,015.67 129,000


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Figure 1-1 Location of Krabinoi mill and its supply bases

Khian Sa Estate

Khaopanom Estate

Banmak Estate

Kohnoi Estate

Khaokhen Estate Chai Buri Estate

Krabinoi Mill

Krabinoi Estate


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Figure 1-2 Block Map of Krabinoi Estate


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Figure 1-3 Block Map of Khaopanom Estate


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Figure 1-4 Block Map of Khaokhen Estate


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Figure 1-5 Block Map of Kohnoi Estate


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Figure 1-6 Block Map of Banmak Estate


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Figure 1-7 Block Map of Khian Sa Estate


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Figure 1-8 Block Map of Chaiburi Estate


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1.3.3 Time-bound Plan

UPOIC does not have any mill and estates other than those being certified in this certification process, so there is no time bound plan for other units of mill and estates.

1.4 Date of Planting and Cycle

1.4.1 Year of planting for 7 estates from 1981 & before to 2011

Year of Planting

Planted Area (ha) Total Planted

Area (ha)

Krabinoi Estate

Khaopanom Estate

Khaokhen Estate

Kohnoi Estate

Banmak Estate

KhianSa Estate

Chai Buri Estate

1981 & before

248.93 248.93

1902 - - - 9.12 - - - 9.12

1983 2.35 - - 1.61 - - - 6.92

1905 - - - 5.18 - - - 5.18

1900 - - - - - 607.21 658.50 1117.79

1909 - - - - - 617.08 501.27 1201.07

1998 - - - - - 19.70 122.17 471.95

1991 - - - - - - 197.08 397.8

1991 - - - - - - 6.18 6.18

1999 - - - 2.71 - - 1.12 3.86

2001 67.67 11.11 - 187.82 65.90 - - 284.78

2002 5.92 52.25 51.62 - 180.51 - - 221.33

2004 122.39 11.65 71.15 - 11.09 - - 279.38

2005 187.38 12.11 83.30 69.70 71.15 - - 457.22

2006 3.51 111.71 178.78 258.09 - - - 536.84

2007 160.32 298.95 70.89 - 11.19 - - 570.85

2008 - 116.16 - 19.12 - - - 155.48

2010 596.13 121.32 - 70.15 - - - 795.8

2011 - - - 25.11 - - - 25.11

TOTAL 1,145.67 830.59 458.16 592.21 573.18 1,151.79 2,861.81 7,015.67

Remark: The areas planted before 1982 were planted on the valid land claim which have been bound by the land deed, land license and land permit issued by governmental sectors.


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1.4.2 Five year replanting program for Each Estate from 2013 to 2017

Year of Replanting

Planted Area (ha) Total area to

be replanted

(ha)

Krabinoi Estate

Khaopanom Estate

Khaokhen Estate

Kohnoi Estate

Banmak Estate KhianSa

Estate

Chai Buri Estate

2013 2.35 - - 19.03 - - - 21.38

2014 - - - - 248.93 - - 248.93

2015 - - - - - 336.96 264.65 601.61

2016 - - - - - 415.24 264.65 679.89

2017 - - - - - - 264.65 264.65

TOTAL 2.35 - - 19.03 248.93 752.2 793.95 1,816.46

1.5 Other Certifications Held (ISO, etc.)

Certification Name Certification

Num. Date of

Certification Valid until

ISO 9001:2008 certified by SGS for mill and seven estates under the scope of seed germination, seedling production, land preparation, upkeep & transportation of fresh fruit bunch and including the processing of oil palm products, crude palm oil, palm kernel, crude palm kernel oil, palm kernel cake and production and distribution of electricity 1 MW. by biogas

No. TH04/4584 Mar 09, 2010 Mar 08, 2013

ISO 14001:2004 certified by TUV SUD for mill and seven estates under the scope “seeding production, land preparation, planting, upkeep & maintenance. The harvesting of oil palm fresh fruit bunch, transportation of fresh fruit bunch and the processing of oil palm products including crude palm oil, palm kernel, crude palm kernel oil and palm kernel cake. Biogas power generation and distribution

No. TUV104 11 1487

Mar 19, 2010 Mar 18, 2013

OHSAS 18001:2007 certified by TUV SUD for mill and seven estates under the scope “seedling production, land preparation, planting, upkeep & maintenance. The harvesting of oil palm fresh fruit bunch, transportation of fresh fruit bunch and the processing of oil palm products including crude palm oil, palm kernel, crude palm kernel oil and palm kernel cake. Biogas power generation and distribution”.

No. TUV 116 11 1487

Mar 19, 2010 Mar 18, 2013

TIS 14001-2548 (ISO 14001:2004) certified by Management System Certification Institute (Thailand) or MASCI for mill only under the scope “manufacture of crude palm oil, crude palm kernel oil, palm kernel cake and the electricity generation by biogas for distribution”

No. EMS100002/ 318

Jan 15, 2010 Jan 15, 2013

TIS 14001-2548 (ISO 14001:2004) certified by Management System Certification Institute (Thailand) or MASCI under the scope “seed germination, seedling production, land preparation, planting, upkeep

No. EMS100003/ 319

Jan 15, 2010 Jan 15, 2013


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and harvesting of oil palm fresh fruit bunch and transportation to factory”

1.6 Organizational Information/Contact Person

Organizational Information

Principle Contact Person Mr. Sarut Colathan

Position Business Development Manager

Business Address

United Palm Oil Industry Public Company Limited (UPOIC)

98 Moo .6 , Nuaklong-Khao Phanom Road, Huayoong, Nuaklong District. 81130 Krabi, Thailand.

Group Name (If applicable) -

Office Telephone Number +66 75-666-075

Mobile Telephone Number -

Fax +66 75-666-072

E-mail address [email protected]

Web site www.upoic.co.th/

1.7 Tonnages Certified

Tonnages to be Certified

Name of Mill Krabinoi Mill (UPOIC)

Location 98 Moo .6 , Nuaklong-Khao Phanom Road, Huayoong, Nuaklong District. 81130 Krabi, Thailand.

CPO Production (ton) 20,000 ton

PK Production (ton) 5,000 ton

2 Assessment Process

2.1 Assessment Methodology (Program, Site Visits)

2.1.1 General Overview

The assessment was carried out by referring to TÜV NORD Indonesia Certification Procedure, PRSPO-

TNI-01 Rev. 0, dated 01.06.2008. This procedure described the assessment processes, which consist of

several stages, such as contract review and offer preparation, audit preparation, certification audit,

certificate issuance, and surveillance audit. Audit preparation included off site review of client document’s

such as RSPO manual, procedures, and working instructions. The certification consisted of two audit

stages. First stage was conducted back in February 8 and 9, 2012. During the first stage, on site review of

mailto:[email protected]

http://www.upoic.co.th/


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RSPO related documents and records were done for both Krabinoi mill and estate, while the rest of estate

will be visited in stage II. Based on findings and recommendation from the first stage, auditor team asked

client to prepare corrections and provide evidences, and upon confirmation of corrections made the auditor

issued notification for certification audit to RSPO Executive Board to be published at RSPO website. The

certification assessment of UPOIC and its three (3) out of seven (7) estates, which are Krabinoi, Khian Sa,

and Chai Buri was carried out from June 26-29, 2012. The assessment comprised four phases:

A desk audit (document check) of UPOIC and 7 estates with the help of a customised RSPO audit

checklist according to RSPO manual, procedures and palm oil mill and estate working instructions;

Review results of consultation with stakeholders prior to certification assessment. The detailed

method is given in 2.5 below

Background investigations (published disputes if any, public comments on preliminary

announcement, laws and regulations concerns related to land, environmental and social aspects),

map of land right and prohibited areas from relevant governments, and followed by interviews with

RSPO management, employees and other stakeholders (associated people, NGOs, land

regulators, social watchers, labour union).

Verification of proposed corrective actions on August 14, 2012 continued by review of the

assessment report by internal veto persons (directors of PT. TÜV NORD Indonesia)

The summary public report of certification assessment includes Corrective Action Requests, Corrective

Action Taken Plan, Verification of Corrective Action Taken, and Progress on implementation of Corrective

Action which will be checked during the Surveillance Audit Assessment Agenda

Table 2-1 Audit Schedule

Date Location P&C Main Activities

Day. 1

26.06.2012

Chaiburi

(AM,BP,KB)

Opening meeting.

Introduction by team leader.

Introduction of team members and assessment agenda.

Presentation by Group Manager (Estate and Mill).

1.1, 1.2 Request of info and respons

2.1, 2.2, 2.3, 3 Regulation compliance, land-use right, customary right, actual and budgeted production

4.1 – 4.8 SOP, Soil Control, Errosion Control,Water Mgt, IPM, Chemical Mgt

5.1-5.6 EIA, HCV, Burning Issues, Waste Mgt., Agrochem

Day. 1 Khian Sa 1.1, 1.2 Request of info and respons


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26.06.2012

(SC,PK)



5.1-5.6 EIA, HCV, Burning Issues, Waste Mgt., Agrochem.

6.1-6.11 SIA, Communication, Complaint, Customary,

Wages,Trade Union, Anti Child Labour/ Discrimination/Sexual Harrasment, Payment to Outgrower, CSR

Day. 2

27.06.2012

Public Consultation at Chaiburi Estate (SC,PK)

1.1, 1.2 , Request of info and respons

2.1, 2.2, 2.3 Regulation compliance, land-use right, customary right, actual



Day. 2

27.06.2012

Krabinoi Mill

(AM,BP,KB)

3, 3 Actual and budgeted production


5.1-5.6 EIA, Waste and Pollution Management, Energy Management

6.1 – 6.11 SIA, Communication, Complaint,


Day. 3

28.06.2012

Krabinoi Estate (AM,BP,KB,SC,PK)

1.1, 1.2 Request of info and respons



5.1-5.6 EIA, HCV, Burning Issues, Waste Mgt., Agro chemical.



Day 4

29.06.2012

Krabinoi Mill Office All Audit Reporting

Day 5

30.06.2012

Krabinoi Mill Office All Closing Meeting

Chaired by the assessment team leader.

Presentation of findings by the assessment team.

Questions and answers.

Final summary by team leader.

2.2 Date of Next Surveillance Visit

The surveillance audit will be scheduled on 2013. Surveillance audit is conducted once a year for a 5-

year period of validity certificate.


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2.3 Lead Assessor/Assessment Team

2.3.1 Lead Assessor: Anita Masduki (AM)

Qualification Compliance

Educational Background

A minimum of post high school (post secondary school) training in, and either agriculture/ forestry, environmental science or social science;

Chemical Engineer, Bandung Institute of Technology-Indonesia, passed 1987

Diploma of Biological Treatment Management, Name of University etc. Hiroshima University-Japan, 1991-1992

Diploma of Environmental Management, Institute of Environmental Management and Assessment, London- United Kingdom, 1999

Magister of Social Education, Ibnu Khaldun University, Bogor-Indonesia, 2007-200

Candidate Doctoral Program of Education Management, Ibnu Khaldun University,Bogor-Indonesia, 2010-present

Yes (Y)

Working Experience

At least 5 years experience in area of work relevant with the audit (e.g., oil palm management; agriculture, ecology; social science);

Environmental/ ecological , safety and health assessment

1992-1995: Assessment the environmental impact for several industries of pulp and paper, wood product, pharmacy, at Java, Sumatera, and Kalimantan

1996: Cleaner Production Division for GTZ-Germany and Environmental Impact Control Agency - Indonesia) and Swiss Contact; responsible for research and develop program to integrate cleaner production in the strategic planning of industrial development program, including identifying candidates for implementing cleaner production program in Indonesia. The project include of information dissemination, assist on pilot projects, develop guidance manual for cleaner production integration, develop cleaner production training workshops, deliver training for trainer, etc. This project based on social services provided by GTZ-Germany and Environmental Impact Control Agency of Indonesia as Awareness for Indonesian Cleaner Production Program.

1997- 1998: Global Climate Division of State Ministry of Environment, Jakarta and World Bank – Washington; responsible for preparing Investment Project Proposal for Ozone Depleting Substances Phaseout in Indonesia to be granted by Montreal Protocol Multilateral Fund through World Bank. This project focused on research in identifying industries as candidates for investment project. The project covered dissemination of information, assist on pilot projects, develop guidance manual for cleaner production integration, develop investment project proposal, delivered training, workshops for trainer, public training, etc.

1998-2011: Audit and consultancy experiences for more than 80 companies for ISO 9001, ISO 14001, OHSAS 18001, SA 8000, since 1996 up to 2011 in wide range of audit scope, such as estates, oil and gas, pulp and paper, electronic manufacturing, school and university, contractors, etc.

Y

RSPO Training:

Trained in practical application of the RSPO criteria, and RSPO Certification System;

Certified RSPO Lead Auditor Training by Wild Asia, May 2011, Kuala Lumpur, Malaysia

Workshop on Indonesia Sustainable Palm Oil, February 2012, Indonesia Palm Oil Community, Jakarta

Y

Completed ISO 9001/ 14001/18001 Lead Auditor course and audit experiences.

ISO 9001:2000 Advanced Lead Auditor Training Course, by SGS International Certification Services, 2002, Jakarta-Indonesia

Certified Auditor Training of Environmental Management System (ISO 14001:1996) EARA -RIET - REDECON Jakarta

Occupational Safety and Health Audit Scheme (OSHAS) 18001, SGS-Jakarta 2002

Y

Experience related to RSPO:

A supervised period of training in practical

Having more than 15 days of audit in more than palm oil companies (Feb 2011 – June 2012)

1. RSPO PNC Auditor for Main Audit of Mill and Estates London Sumatera Musi

Banyuasin, Palembang-Indonesia, Feb. 21-25, 2011 (5 days)

Y


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assessment against the RSPO criteria or similar sustainability standards, with a minimum of 15 days assessment experience at least 3 assessments at different organisations

2. RSPO PNC Auditor for Pre Audit-1 of Salim Ivomas Perkasa Mill and Estate, Riau-

Indonesia, April 25-28, 2011 (4 days)

3. RSPO Supply Chain Lead Auditor for Main Audit of Wilmar Group, 2 mills and 2

refineries, Sumatera and Kalimantan-Indonesia, May 23-25,June 13-17, 2011 (7 days)

4. RSPO PNC Auditor for Main Audit of Mill and Estates London Sumatera, Site North

Sumatera-Indonesia, June 20-28, 2011 (9 days)

5. RSPO PNC Auditor for Tapian Nadenggan-SMART Group, July 4-8, 2011 (5 days)

6. RSPO PNC Lead Auditor for Pre Audit of PT ANJA Agri Binanga Mill and Estates, Site

ANJA Binanga & Tungkal Ulu, North Sumatera -Indonesia, Juli 18-20, 2011 (3 days)

7. RSPO PNC Lead Audit for Main Audit of Inti Indosawit Plasma Estates, Site ANJA

Binanga and Tungkal Ulu-Indonesia, Sep 12-14, 2011 (3 days)

8. RSPO PNC Lead Auditor for Pre Audit -2 of Salim Ivomas Perkasa Mill and Estates,

Riau-Indonesia, September 26-30, 2011 (5 days)

9. RSPO PNC Lead Auditor for Main Audit of PT ANJA Binanga Mill and Estates, Site

ANJA Binanga & Tungkal Ulu, North Sumatera -Indonesia, October 11-14, 2011 (4

days)

10. RSPO Supply Chain Lead Auditor for Main Audit of Dr. Oetker Foods Industry,

Oerlinghosen-Germany, November 7-11, 2011 (5 days)

11. RSPO PNC Lead Auditor for Pre Audit of Austindo Nusantara Jaya Agri Mill and

Estates, Site Binanga, North Sumatera -Indonesia, November 28-December 2, 2011 (5

days)

12. RSPO PNC Lead Auditor for Main Audit of Salim Ivomas Perkasa Mill and Estates,

Riau-Indonesia, December 19-23, 2011 (5 days)

13. RSPO PNC Lead Auditor for Pre Audit of UPOIC Thailand, Feb 8-9, 2012 (2 days) and

June 2012 (6 days)

14. RSPO PNC Lead Auditor for Pre Audit of Perkebunan Nusantara !V Mill and Estates,

North Sumatera -Indonesia, Feb. 20- 24, and May 28-31, 2012 (10 days)

15. RSPO PNC Lead Auditor for Main Audit of Austindo Nusantara Jaya Agri Mill and

Estates, Site Binanga, North Sumatera -Indonesia, March 5-9, 2012 (5 days)

16. RSPO Supply Chain Lead Auditor for pre audit of Lam Soon Thailand, March 13-15,

2012 (5 days)

17. RSPO Supply Chain Lead Auditor for Main Audit of Lam Soon Thailand, April 29-May 5,

2012 (6days)

18. RSPO PNC Lead Auditor for Surveillance Audit of PT Aek Tarum Mill and Estates,

South Sumatera -Indonesia, May, 2012 (5 days)

19. Lead Auditor for RSPO New Planting Procedure of First Resources Group, PT Borneo

Persada Energy Jaya and Citra Agro Kencana, Indonesia, May, 2012 (4 days)

20. RSPO PNC Lead Auditor for Main Audit of UPOIC Thailand, May-June 2012 (6 days)

21. RSPO PNC Lead Auditor for Surveillance Audit of PT Sahabat Mewah Sejahtera Mill

and Estates, Belitung Island -Indonesia, July, 2012 (6 days)

22. Lead Auditor for RSPO New Planting Procedure of First Resources Group, PT Borneo

Surya Mining Jaya and Maha Katya Bersamaa, Indonesia, September, 2012 (4 days)

2.3.2 Assessment Team Members

1. Chaiyaporn Seekao (SC)

Qualification


- May, 2010-present, Ph.D candidate (Environmental Management) full Scholarship at The International Postgraduate Programs in Environmental Management (Hazardous Waste Management), Chulalongkorn University, THAILAND

- April, 2006, hold Master of Science (Sustainable Land Use and Natural Resource Management) degree from Kasetsart University, THAILAND.

- April, 2002, hold Bachelor of Science (Fisheries) degree from Kasetsart University, THAILAND

Working Experience

- October 2009 to present: work at TÜV NORD (Thailand) Ltd. and was responsible for several standards such as ISO9001:2008, GMP, HACCP,FAMI-QS, GLOBALG.A.P and RSPO

- Year 2008-2009: worked at Team Consulting Engineering and Management Co., Ltd.,


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consultancy company, and was responsible for conducting the Environmental Impact Assessment (EIA) study which includes HCV, biodiversity social and health impact assessment for many mega-projects which were engaged by both domestically and internationally recognized companies. The area of my expertise on EIA study emphasizes on fishery and agriculture topics, Conduct public hearing/consultations for obtaining the comments and feedback from all stakeholders. Provide the client with appropriate consultation and environmental mitigation plan, to minimize the environmental, social and health impacts to nearby communities, Service the client with integrated consultancy based on environmental management, Audit and monitor at project sites during the construction and commissioning period, to ensure that all construction and commission process/activities meet with EIA mitigation measures. The achievement on EIA report are as following for example:

Environmental Impact Assessment of Chana Power Plant Phase 2 Project engaged by the Electricity Generating Authority of Thailand

Environmental Impact Assessment of Chana Power Plant Phase 1 Project engaged by the Electricity Generating Authority of Thailand

IEIA/ISIA of Xepian Diversion Project engaged by Glow Energy Public Company Limited (project in Lao PDR)

EIA of 100 MW Coal Fired Power Plant, Cambodia engaged by the Cambodian Energy Company Limited

Nuclear Power Plant (Pre-Project Activities Study) engaged by the Electricity Generating Authority of Thailand

Revision of EIA for Samet Tai Power Plant Project engaged by the Siam Energy Company Limited

EIA of the Thai oil jetty No.7-8 engaged by the Thai Oil Public Company Limited

EIA of the West Coast Avenue (Thailand Riviera) Project engaged by the Department of Rural Road

EIA for the Four-Lane of Highway No. 12 (Phitsanulok - Lom Sak) Phase 2 Project engaged by the Department of Highway

Environmental Impact Assessment of Sam-Khok (Pathumthani) Power Plant Project engaged by the Ratchaburi Electricity Generating Holding Public Company Limited

EIA of BP2 Coal Mining engaged by the Banpu Publish Company Limited - Year 2006-2008: worked Virbac (Thailand) Co.,Ltd , responsible for Act as GMP and HACCP

coordinator (QMR) to coordinate with Department of Fisheries for GMP and HACCP certification, Create new products and improve quality of existing products in particular for shrimp, tilapia and pangasius to meet with customer requirement and regulation concerned, Visit and give the technical support/consultancy to suppliers, customers and fish/shrimp farmers in both domestically and internationally, for example.

- Year 2005-2006: worked at Food and Agriculture Organization of the United Nations (FAO) with responsible for Closely coordinate with governmental sector, international organization, national organization, embassy, university and NGOs where has involved in providing tsunami relief to establish the tsunami assistance database, Involve to study and establish the short and long term plans to assist the tsunami victims in Thailand especially recovery their household, occupation and livelihood and Conduct the public hearing/consultations for obtaining the comments and any feedback from all stakeholders.

- Year 2002-2005: worked at Department of Fisheries, Ministry of Agriculture and Cooperatives

RSPO Training RSPO Lead Auditor Course Organized by Stepwise Support Programme during April 12-16, 2010, Johor Bahru, Malaysia;

Other Training

Principles for Responsible Shrimp Farming according to Code of Conduct for Sustainable Shrimp Culture (CoC) and Good Aquaculture Practice (GAP) (Train for trainer) Organized by Department of Fisheries during July 3-7, 2002, Songkha Province, Thailand;

Aquaculture Certification Council Training Course Organized by SGS (Thailand) during July 21, 2006, Bangkok, Thailand;

Advance Statistical Process Control (SPC) 2nd Edition Organized by OMNEX Co., Ltd during October 3, 2009, Bangkok, Thailand; Measurement System Analysis Third Edition Organized by OMNEX Co., Ltd during October 22, 2009, Bangkok, Thailand;

GRASP Auditor Training Organized by GLOBALG.A.P during October 13, 2009, Kuala Lumpur, Malaysia; GLOBALG.A.P Train-the-Trainer Workshop for Aquaculture Pangasius, Tilapia (Ver 1.0 Apr 09), Shrimp (Ver 1.0-1 Apr 09) Organized by GLOBALG.A.P during October 12-13, 2009, Kuala Lumpur, Malaysia ;

Examination Certificate of GLOBALG.A.P TTS Aquaculture Workshop Organized by


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GLOBALG.A.P during October 12-13, 2009, Kuala Lumpur, Malaysia; ISO 9001:2008 Series Auditor/Lead Auditor Training Course (Course No: A17086 Certificated by IRCA) Organized by Robere & Association (Thailand) Ltd during October 26-30, 2009, Bangkok, Thailand;

Good Manufacturing Practice (GMP) and Hazard Analysis and Critical Control Point System (HACCP) for Food Industry (Rev. 4-2003) Organized by National Food Institute during February 22-26, 2010, Bangkok, Thailand ;

International Standards for Responsible Tilapia Aquaculture (ISRTA)-created by the Tilapia Aquaculture Dialogue (TAD) during October 14, 2010, Bangkok Thailand;

CB in-house trainer training – aquaculture Organized by GLOBALG.A.P secretariat during February 21-22, 2011, Cologne Germany;

FAMI-QS Auditor Training Session Organized by FAMI-QS secretariat during May 9-10, 2011, Mumbai, India; GLOBALG.A.P CB option 2 training for group certification-V4 Organized by GLOBALG.A.P secretariat during June 10, 2011, Beijing, China;

BAP auditor course training organized by the Global Aquaculture Alliance Best Aquaculture Practices standards during February 6-12, 2012, Bangkok, Thailand

Experience related to RSPO

Having experiences in assessment RSPO to date (as per June 2012, )

1. RSPO Supply Chain Auditor for pre audit of Lam Soon Thailand, March 13-15, 2012 (5 days)

2. RSPO Supply Chain Auditor for Main Audit of Lam Soon Thailand, April 29-May 5, 2012 (6days)

2. Karlina Bone (KB)

Qualification


- Bachelor of Science in Biology from School of Life Sciences and Technology, Institut Teknologi Bandung – Indonesia in 2005.

- Master of Science in Aquaculture from Ghent University, Belgium in 2008

Working Experience

- October 2010 – Present, she is working with PT. TUV NORD INDONESIA as Food Inspector/Marketing in Food Division, QMS Certification Personnel.

- January 2010 – July 2010, she worked as Food Safety and Hygiene Assistant Manager at PT. Carrefour Indonesia (Head Office) with responsible for arranging monthly audit schedule for stores, monitoring store’s audit by third party and checking the audit’s report, conducting hygiene training for store’s fresh division managers, sales managers, team leaders and associates, updating audit checklist in accordance with new governance policy and assisting in monitoring monthly lab analysis result for Carrefour’s private label products.

- October 2009 – January 2010, she worked at PT. Bureau Veritas Indonesia with responsible for monitoring hygiene implementation in fresh product preparation in store, checking product quality in store and reporting audit result

-

RSPO Training

- RSPO-endorsed RSPO Supply Chain Certification System Training Course; David Ogg & Partners. Jakarta. April 2012.

- Roundtable on Sustainable Palm Oil Lead Auditor Training Course. Stepwise Support Programme. Kuala Lumpur, Jakarta. September 19-23, 2011.

Other Training

- Quality Management Systems Auditor/Lead Auditor Training Course With LIVE AUDIT and Accelerated Learning Method IRCA (UK) Registered A17399Neville Clarke. Jakarta August 2011.. Food Safety Management System: ISO 22000:2005 Series Professional Auditor/Lead Auditor. Neville Clarke. Jakarta. May 2011.

- Communication Skill Training, IRCA Certified Training Course. CDC-ITB & PT. Unilever, Tbk. 2005.

Experience related to RSPO

Having experiences in assessment RSPO to date (as per June 2012, )

1. RSPO Supply Chain Auditor for Main Audit of Dr. Oetker Foods Industry, Oerlinghosen-Germany,

November 7-11, 2011 (5 days)

2. RSPO PNC Lead Auditor for Pre Audit of Perkebunan Nusantara VI Mill and Estates, Jambi -Indonesia,

November 20112012 (10 days)

3. RSPO PNC Lead Auditor for Pre Audit of UPOIC Thailand, Feb 8-9, 2012 (2 days)

4. RSPO PNC Auditor for Pre Audit of Perkebunan Nusantara !V Mill and Estates, North Sumatera -

Indonesia, Feb. 20- 24, and May 28-31, 2012 (10 days)

5. RSPO PNC Auditor for Surveillance Audit of PT Sahabat Mewah Sejahtera Mill and Estates, Belitung

Island -Indonesia, July, 2012 (6 days)

http://www.gaalliance.org/bap/

http://www.gaalliance.org/bap/


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3. Technical Expert : Associate Professor Dr. Benchamaporn Pimpa (BP)

Qualification


- Doctor of Philosophy (Food Chemistry and Biochemistry) degree from University Putra Malaysia, Malaysia.

Working Experience

- Lecturer in teaching the following subject: Fat and oil processing I, Fat and oil processing II; Quality control. - Member and secretary of the Oil Palm Research Unit of Prince of Songkla University, Suratthani Campus. - Completed research projects related to palm oil as following:

- Effect of synthetic antioxidants on the oxidative stability of refined bleached and deodorized palm olein during 2006-2007;

- Detection of Salmonella sp. In salted egg by PCR method compared to conventional culture method during 2007-2008;

- The study of crude palm oil content in oil palm fresh fruit bunch and effect of incubation time on quality and quantity of crude palm oil at Suratthani province during 2007-2009;

- Production of palm oil for consumption and biodiesel for oil palm farmer during 2009-2011. - Currently studying the research under the project name “The study of ripeness and oil content of oil

palm fresh fruit bunch and effect of steaming of oil palm fresh fruit bunch to crude palm oil content”. - As speaker following subject: Production of biodiesel from used vegetable oil, Junior oil palm farmer

promotion, Extraction of crude palm oil by using a small scale extraction machine, and Road map to sustainable oil palm production (Speaker).

-

4. Technical Expert : Pongrat Khamnungkit (PK)

Qualification


- Bachelor degree (Public health) major Environmental Health Science and Sanitation from Mahidol University since 1989.

Working Experience

- Sixteen years of experience in environmental impact assessment especially on sanitation, public health and social-economic study, quality system ISO9000, environment management system ISO14001, auditing, compliance audit, Thai labor standard audit and quality control and assurance of poultry processing plant.

- Work for TUV NORD (Thailand) for a decade and had responsible to audit against ISO9001, ISO14001, OHSAS18001, TIS18001 and Thai Labor Standard (TLS) 8001.

- Done EIA report more than 30 projects throughout Thailand with emphasize on the field of public health and social impact assessment.

RSPO REQUIREMENT ASSESSOR QUALIFICATIONS COMPLIANCE

Fluent in main local languages and English.

Seekao Chaiyaporn (SC)

Phomrat Khambungkit (PK)

Benchamaporn Pimpa (BP)

Fluent in Thai language and English Y

Field working experience in the palm oil sector, or a demonstrable equivalent.

BP She is also now member and secretary of the Oil Palm Research Unit of Prince of Songkla University, Suratthani Campus. She has completed research projects related to palm oil as following: Effect of synthetic antioxidants on the oxidative stability of refined bleached and deodorized palm olein during 2006-2007; the study of crude palm oil content in oil palm fresh fruit bunch and effect of incubation time on quality and quantity of crude palm oil at Suratthani province during 2007-2009; and

Y


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Production of palm oil for consumption and biodiesel for oil palm farmer during 2009-2011. Currently, she is studying the research under the project name “The study of ripeness and oil content of oil palm fresh fruit bunch and effect of steaming of oil palm fresh fruit bunch to crude palm oil content”. She used to be speaker following subject: Production of biodiesel from used vegetable oil, Junior oil palm farmer promotion, Extraction of crude palm oil by using a small scale extraction machine, and Road map to sustainable oil palm production (Speaker)

KB Having experience in RSPO P&C Certification audit as well as RSPO Supply chain audit as a trainee.

Good agricultural practices(GAP), integrated pest management (IPM), pesticide and fertilizer use.

CS Having experience in GLOBAL G.A.P since 2009.

Y

Health and Safety assessment on the farm and in processing facilities. (For example OHSAS 18001 or occupational. Health and safety assurance system).

PK Having experience in audit OHSAS 18001 Y

Workers welfare issues and social assessment experience. (For example with SA8000 or related social or ethical accountability codes).

PK Having experience for more than 23 years in SA 8000 as well as Thai Labor Standard (TLS) 8001

Y

Environmental and ecological assessmenting. (For example experience with organic agriculture, ISO 14001 or environmental management systems).

AM More than 15 years for preparing the environmental impact assessment and ISO 14001. Preparing ISO 14001 for estates, contractors, power plant, etc.

Y

CS Having experience in lots of Environmental Impact Assessment Project while working in one of environmental consultancy company in 2008

Y

PK Involved in more than 30 projects throughout Thailand in Environmental Impact Assessment emphasized on a public health field as well as Social Impact Assessment.

Y

Economic issues PK Having experience in public health and socio-economic study

Y

2.4 Certification Body

PT. TÜV NORD Indonesia is a subsidiary of the German TÜV NORD Group. Our company is a market

leader in Indonesia for inspection, testing and certification services. Through more than 800 clients, we


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offer not just a high added value service but also the trust and confidence embedded in our issued

certificates / reports. We satisfy not only our direct customers but also other stakeholders, like regulators

and interested society including NGOs, through our competent auditors, inspectors and analysts. In this

assessment, PT. TÜV NORD Indonesia has collaborated with TUV NORD Thailand.

Under its HQ in Germany, PT. TUV NORD Indonesia is a member of International Accreditation Forum

(IAF) and accredited by DAR–Germany, and locally accredited by the Indonesian Accreditation Committee

(KAN). Services provided by the Strategic Business Unit Systems Certifications are: Food Safety

Management System ISO 22000, GMP, HACCP, Information Security Management System ISO 27001,

Social Accountability SA 8000, Medical Device Directive MDD ISO 13485, Occupational Health and Safety

OHSAS 18001, Product Certification: GS-Marking, CE-Marking, SNI Marking, Inspection for ISPS Code,

Clean Development Mechanism (CDM) Validation & Verification, British Retail Consortium, BRC Issue 5.

2.5 Outline of How Stakeholder Consultation Was Managed

2.5.1 Summary

Stakeholder consultation began with notification of the upcoming assessment during June 26-29, 2012 by

posting in the RSPO’s website. Telephone contact numbers, emails, facsimiles or postal address were

made available in the RSPO’s website so that stakeholders can be aware before initiating the assessment.

However, UPOIC and its seven (7) estates have held regular meeting with stakeholders voluntarily without

being bound by RSPO requirement. Before executing the assessment, the audit team read through the

complete proceeding of all meetings to update and catch up the current situation and issues raised by the

stakeholders. The stakeholders were then invited to discuss critical issues in community development,

including the latest progress of plans for community development and the targets to be achieved. Some of

the items on the agenda for the stakeholders’ meeting were as follows:

The impact of both mill and estate on the Environment and Conservation.

The impact of both mill and estate on social and community development.

How to promote sustainable palm oil

Determine issues of community that will be affected either by direct or indirect impacts from the mill

and estates, as well as determine how to improve the solutions.

Agenda above covered on how to maintain the infrastructure of roads in-out estates, mechanism to give the

complaint and grievances, maintain environmental conditions, corporate social responsibility including how

to provide financial support, scholarships, welfare, sanitation and improve the quality of life for stakeholders


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who live around the estates. The discussion with stakeholders was well organized and freedom was given

to the stakeholders to reveal their perspectives, either negative or positive on the estates and mill. The

audit team then visited some stakeholders for interviewing to obtain both negative and positive information

in order to recheck with the minutes of meeting done between UPOIC and stakeholders. The minutes were

recorded in a proper manner for confirmation by UPOIC and 7 estates after which the results were

incorporated in the assessment finding.

2.5.2 List of Contacted Stakeholders

The details of local stakeholder list showed that there are no indigenous peoples, worker organization, local

NGO and national NGO in the vicinity of the mill and estates. The in-availability of either indigenous

peoples “morgan who lives in Mo Kho Surin Island only”, worker organization, local NGO and national NGO

have been confirmed again through a public consultation meeting held at Chaiburi estate office on June 27,

2012, and below is the list of stakeholders who attended the meeting (see Table 2-2 List of Stakeholders )

a. Table 2-2 List of Stakeholders around Krabinoi mill and its supply bases

No STATUTORY BODIES & LOCAL COMMUNITIES Name in Contact List

1.

BANG REAW SCHOOL MR. SOMCHIT YOIYANGTHONG 2. CHIEF EXECUTIVE OF KEERIWONG SUB-

DISTRICT ORGANIZATION MR. JIT THANYANITI 3. MEMBER OF KEERIWONG SUB-DISTRICT

ORGANIZATION MR. MADEE DUANGKERT 4. DIRECTOR OF KASETSART UNIVERSITY

(KRABI CAMPUS)

5. DIRECTOR OF KRABI AGRICULTURE AND TECHNOLOGY COLLEAGE

6.

CHAIBURI KAMNAN MR. AUDOM NOORIKYA

7. CHAIBURI POLICE STATION POLICE LIEUTENANT WANCHART THONGPETCH

8. KRABI PROVINCIAL FORESTRY OFFICE MR. SOY THONGMEE

9.

CHAIBURI HEALTH STATION MS. AURAIWAN CHANKAEW

10. VILLAGE HEADMAN MOO 1 KEERIWONG SUB-DISTRICT, PAIPHAYA DISTRIC, KRABI PROVINCE

MR. SUNAN PROMRAKSA

11. VILLAGE HEADMAN MOO 3 AOUYLUK SUB-DISTRICT, AOUYLUK DISTRIC, KRABI PROVINCE

MR. PAIBOON SAIDUM

12. REPRESENTATIVE OF VILLAGE SURROUNDING THE MILL

MR. JOB CHAIPONG


MR. KRIENGKRAI BOONPAN


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MR. MANIT LEASKRAI


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3 Assessment Findings

3.1 Summary of the Findings by Criteria

Objective evidences were obtained separately for each of the indicators for mills and estates in the

certification assessment. The information was comprehensively asked from 1 mill and 7 estates. The

results for each indicator from the different operational areas were aggregated to assess the overall

conformances of the company’s operations to each criterion. A statement is made for each indicator on the

finding. A detailed description of the Non-Conformities is given in Section 3.2.

Nonconformities were raised for five (5) Major and three (3) Minor Indicators, with some opportunities for

improvement. Where a nonconformity/observation is assigned, reference is made at the end of the text of

the indicator to which it refers.

UPOIC and estates have prepared a Corrective Action Plan with date for implementation has been

accepted by PT. TUV NORD Indonesia and TUV NORD (Thailand). The effectiveness of the corrective

action for minor conformities will be checked on the next surveillance but the major nonconformities have to

be closed within 60 days.

The following is a summary of the findings for compliance with the RSPO Principles & Criteria for Thailand

(TH-NI).

Table 3-1 Summary of Findings by Criteria

FINDINGS/COMMENTS COMPLIANCE

Criterion 1.1 (C.1.1)

Provide adequate information to other stakeholders on environmental social and legal issues relevant with RSPO Criteria, in appropriate languages and forms to allow for effective participation in decision-making

UPOIC has procedures which have been announced to the stakeholders during the public consultation meetings before the date of certification assessment in order to inform the stakeholders on their right to ask for the relevant documents, in line with the company’s transparency in its operations. Annual announcement plan FM-EMR-026 00/2009 dated 12/08/2009 has been established for informing the stakeholders regularly.

Currently, there are no any requests for information from the stakeholders (1.1.1). However, the form “Complaint and request form FM-EMR-010” to record the request by the stakeholders is ready when UPOIC and estates have to deal with the requests (1.1.2). In case that any stakeholder requests for information, at least the lists of information such as: summary of land title or land-use rights, health and safety plan, social and environmental impact assessment report, pollution prevention plan, details about complaints and grievances, procedures and process of negotiation, test report on quality of water supply (to ensure that the water meets the national standard) are available and kept in the same file. The record of request/response is designated to be kept for 5 years.

Yes


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Management documents are publicly available, except where these are prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes

According to the plan to communicate with the social communities and stakeholders for year 2012 i.e. to inform the progress of impacts, stakeholders were invited for meeting or allow to visit the estates. This is one of the ways to communicate with stakeholders with regards to documents that need to be made publicly available rather than preparing them and kept them in the estates and mill only. However, the estates have erected a signboard in front of the office building showing the relevant information that can be requested by the stakeholders. Moreover, lists of information; summary of land title or land-use rights, health and safety plan, social and environmental impact assessment report, pollution prevention plan, details about complaints and grievances, procedures and process of negotiation, test report on quality of water supply are kept in the same file. Details on how to deal with complaints and grievances, procedure and process of negotiation and continuous improvement plan especially plan to reduce chemical usage are kept in the file, ready to be shown to stakeholder when it is requested. Separated documents such as CSR report done by Department of Industrial Work of Thailand and certificates obtained from several Certification Body (CBs) and organization are posted on the board and ready for transparency purpose on request (1.2.1).

Yes


There is compliance with all applicable local, national and ratified international laws and regulations

UPOIC and estates have established work instruction PM-EMR-002 rev 06/2012 dated 01/03/2012 used for reviewing any updates related to laws and regulations in every 6 months. Environmental officer in the mill is responsible for updating the laws and regulations. If there is any update on law and regulation, its updates on the changes will be done via website: www.npc-se-co.th and send to the responsible person’s email automatically. List of relevant laws and regulations SD-SMR-006 Rev 8/2011 dated 9/15/2011 showing that both mill and estates have done the necessary updates according to the changes in laws and regulations are listed below.

7 laws for estates related to land right and environment regulation in Thailand from Department of Land Development and Ministry of Environmental and Natural Resource

9 laws from Department of Agriculture on the use of chemical

Waste disposal to be handled by authorized company registered with Department of Industry Work

Boiler inspector license for Mr. Kittisak Saelee obtained from Department of Industry Work on November 24, 2010.

License allowing UPOIC to use the boiler machine for its intended purpose issued by Department of Industry Work

Not only boiler inspector but also engineers and electricians have the necessary qualification approved by Department of Industry Work

The documentation system has included written information on the provisions of laws and regulations (2.1.2). The appointed person responsible from UPOIC is the environmental officer, Ms. Saowarot Arunsiriporn who will receive the update/change on laws and regulations on monthly basis. Then, the evaluation to assess which law is relevant to the mill and estate will be done by the Environmental office and subsequently approved by Mr. Sarut Cholathan, the management representative of mill and estates. Evaluation of relevant laws and regulations form FM-SMR-016 Rev 01/2010 dated 20/4/2010 is used to monitor the status of change on laws and regulations as well as checking the compliance with that changed laws and regulations (2.1.3). List of relevant laws and regulations that

Yes

http://www.npc-se-co.th/


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were kept in year 2011 and 2012 are available. The latest laws released since year 2012 and related to the mill and estate operations were taken up under two 2 issues. It has been done by Ms Saowarot Arunsiriporn and approved by Mr. Sarut Cholathan on 30/5/2012. These 2 issues were:

Announcement letter on labour and safety which was released on 2 May 2012

Announcement letter on environmental laws (only amendment not the huge change) released on 2 May 2012


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

UPOIC and estates have the full right to use the lands for oil palm cultivation because all square meter of land of UPOIC and estates have been alienated with the license or land permit from the governmental authorities concerned such as Department of Land, Agricultural Land Reform Office of Ministry of Agriculture and Cooperatives. However, the contract between UPOIC and Ministry of Agriculture and Cooperatives on the Khien Sa estate and Chaiburi estates will be expired on 8 July 2014 and at the beginning of year 2015, respectively. The plan of replanting for these two estates will depend on whether the validity of land contract for the 2 estates will be extended.

The boundaries of estates were inspected at several places and at every instance found to be demarcated by pillars. Even though all square meters of land can be showed by license and land permits, UPOIC and estates have established the mechanism on how to resolve the disputes/conflict (if any) which is already presented to the public consultation meeting. The procedure to deal with the dispute is PM-PSPO-002 Rev 00/2012 dated 05/01/2012. They have established the compensation mechanism to deal with any cases where the claimants are liable to be compensated by the company. Mr Sarut will be the responsible person to make the final decision. However, if any dispute is unable to be resolved by both parties, the matter will be referred to the court for final resolution.

Based on the results obtained from the public consultation meeting and interviewing stakeholders (3 community leaders and 6 villagers) from the public consultation meeting on 27 June 2012, it showed that there are no disputes so far. Therefore, there is no necessity to map estate boundaries in a participatory way as the company can prove legal ownership of all its estate lands. This issue was also raised and discussed in the public consultation on 27 June 2012 at Chaiburi estate and it was confirmed that there were no occurrence of any land conflicts.

Yes


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

As far as could be ascertained, there is no customary right of other users because all square meters of land of UPOIC and estates have been alienated with the license and/or land permit from the governmental concern such as Department of Land, Agricultural Land Reform Office of Ministry of Agriculture and Cooperatives.

Yes


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

The company is committed to economic and financial sustainability of the palm oil business. An annual plan is outlined in the five-year financial projections, the annual management plan, and annual budget plan for 2010 -2014. Annual budget plan includes production forecast, operating cost, production cost. For mill budget includes FFB received and processed, CPO and PKO production details, crop yield projections and income. Replanting program was available and projected for 5 years, 2013-2017, and reviewed on yearly basis.

Yes


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Figure 2 Replanting implementation

Source: UPOIC and estates, 2005


Operating Procedures are appropriately documented and consistently implemented and monitored

UPOIC and estates have established relevant procedures and work instruction based on good agriculture best practices for their mill and estates. Here below are some procedures and work instruction used in the mill and all estates.

Weed protection/elimination WI-EST-022 Rev 02/2009 date 25/11/2009

Management on abnormal palm oil tree WI-WST-029 Rev 01/2009

Fertilizer use WI-EST-024 Rev 02/2009 date 25/11/2011

IPM WI-EST-023 Rev 02/2009 25/11/2009

Replanting PM-EST-006 Rev00/07

Harveting FFB WI-EST-001 Rev2/2012

Management of disease and insects WI-EST-010 Rev 4/2012

Fertilizer use WI-EST-024 Rev 2/2012

Cutting the young palm tree WI-EST-013

New planting WI-EST-014 Rev 2/2012

Ground cover planting WI-EST-017 Rev 2/2012

Weed management by human power WI-EST-019 Rev 2/2012

Soil and leaf sample for analysis WI-EST-023 Rev2/2012

The use of EFB WI-EST-025 Rev2/2012

Monthly harvest program FM-EST-001 Rev 3/2012

Plan to reduce the use of chemical WI-EST-039 Rev00/2012

Daily work of chemical usage PM-EST-027 01/2008 dated 15/03/2008

In the assessment, not only the inspection of availability of procedures and work instructions but also inspections on the implementation according to their documented procedures are concerned.

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However, as UPOIC and estates have been certified for ISO 9001:2008, ISO14001, OHSAS 18001, TIS 14001-2548, most of the procedures and work instructions are incorporated in the RSPO management system too.

Updated procedures are developed at the UPOIC office and then distributed to the Section Head of each estate whenever there are changes made. The procedures and work instructions are consistently implemented. Records of operation activities based on the relevant procedures and work instructions are kept properly and could be traceable back for 2 years. The performance of each mill work station is monitored on a shift basis and recorded daily. A monthly report is produced by each estate for management meeting that will be held at UPOIC office to review the monthly implementation and any changes that may affect the implementation of each estate


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

Regarding the records of fertilizer application, all estates are provided with different fertilizers according to the purpose of use which comprise formula 21-0-0 ; 0-0-60; 18-46-0, Kieserite, and Borate. Fertilizer application is done daily but cover 2 times a year/crop as showed in Figure 3. Another source of records of fertilizer application can be seen from the stock card in order to cross check amount of fertilizer used in each crop in estate. For the results of soil or leaf nutrient analysis to monitor changes in nutrient status periodically, it will be done according to the work instruction of soil and leaf sample for analysis on nutrient WI-WST-023 rev 02/2012 dated 28/4/2012. However, for assessing the palm nutrient status, leaf sampling and analysis alone was carried out over the last 5 years. The analysis was carried out annually during October – December of every year by Applied Agricultural Resources Sdn. Bhd. (An associated company of Boustead Holdings and Kuala Lumpur Kepong Berhad) from Malaysia. The results of latest leaf analysis done on 29/12/2011 in Krabi Noi estate was ash = 10.67, N=2.52, P=0.152, K=0.65, Mg=0.31, Ca=0.71. However, no leaf analysis was done for Khien Sa estate because the Management was unsure whether the land ownership contract will be extended by the Ministry of Agriculture Cooperatives. The last leaf analysis for Khien Sa was done on 16/1/2010.

For practices to maintain and improve soil fertility, estates established the relevant work instructions as follows:

Improve soil fertility by growing leguminous crops as per WI-EST-017 rev 02/2012 dated 01/02/2012.

Mulch the ground with pruned fronds for immature palms : WI-EST-020 rev 02/2012 dated 28/04/2012

Inter-row U-stacking of pruned fronds to reduce soil erosion as addressed in WI- EST-002 rev02/2012 dated 23/04/2012 as showed in Figure 4.

As a practice to enhance soil fertility, mucuna, which is a tropical legume known as velvet bean or cowitch and by other common names, is grown to prevent erosion and enrichment of soil. Moreover, EFB and POME are also applied to improve soil fertility and reduce wastes from the mill. The main purpose of applying EFB in the estate is to recycle palm nutrients in the EFB back to the fields in the form of mulch which can also act as a medium to reduce soil temperature and return of organic matter to the soils. The application of EFB was done throughout the year. Based on the records of EFB application in the estates last year (2011), it revealed that average of EFB (ton/ha) applied at Krabinoi estate, Khaopanom estate, Khaokhen estate, Khonoi estate, Banmark estate, Khiansa estate and Chaiburi estate were 19.35, 18.73, 24.34, 39.45, 15.39, 14.06, 22.41 and 19.49 respectively. Meanwhile, the application of POME was done by making canals that are able to channel POME from wastewater treatment ponds to the estate. POME was normally applied in Krabinoi estate during hot season when there is lack of precipitation. Based on the monthly record of

Yes

http://en.wikipedia.org/wiki/Fabaceae

http://en.wikipedia.org/wiki/Common_name


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POME application last year (2011), almost 100 ha of planted areas (17 zones) in Krabinoi estate were applied with POME from the last wastewater treatment pond at average of 2,700 cubic meter/zone and at 4 ha/month. Nevertheless, BOD level in POME is not an important factor as the Government has not set any permissible limit for its land application to oil palm fields. To ensure that the application of POME will not affect the surrounding communities and water bodies, any possible leakage of POME into drains, rivers and other sensitive areas was monitored by the estate at regular intervals. Observations made during our audit indicated that there was no leakage of POME to any water courses. POME was only applied in Krabinoi estate because the distance between Krabinoi estate and mill is not a constraint as compare to application of EFB and POME for other estates.

Figure 3 Fertilizer application by mechanical spreader in the estate

Figure 4 : U-stacking of pruned fronds in the palm inter-rows


Practices to minimize and control erosion and degradation of soils

Estates have committed to control and minimize soil degradation by using topography map with contour lines to delineate sensitive areas of erosion. Based on the topography map from Royal Thai Survey Department, the highest elevation of land among all the 7 estates is found in Krabinoi estate with an elevation of 130 meter above mean sea level (MSL). In particular, areas with slopes of 20-25% in the topography map from Royal Thai Survey Department is considered as fragile soil areas as shown in Figure 5 since risk of soil erosion is higher and need to have a management plan according to the Good Agriculture Practice recommended by Department of Agriculture of Thailand. Accordingly, no cultivation should be carried out on lands with slope gradient of 25% or above. For soil erosion control as well as prevention and to trap runoff for water conservation purpose, work instructions on terracing for oil palm planting in WI-EST-015 Rev02/2012 dated 23/4/2012 which showed how terraces should be constructed along the contours when there is a need to grow palms on sloping areas. Besides that, work instruction WI- EST-016 Rev02/2012 dated 28/04/2012 showing how rain water is to be trapped and stored has also been established. Moreover, there are certain techniques to reduce soil erosion during land preparation for planting / replanting described in SOP such as planting a legume cover, e.g., Mucuna bracteata, terracing/platforms, frond stacking against the slope, digging silt trap pits and windrowing the old crop even though no sandy soil has been found in the fragile soil map. During the audit, it was observed that terraces and silt pits in the fields still remain in good condition even though they have been constructed for years.

Road maintenance (grading, compacting and cambering) is another method to minimize soil erosion and degradation. The estates have established their road maintenance plan according to the condition of road in each estate. Map of road in the estate is used to make the road maintenance plan and identify which road either main or sub-road need to be improved. For Chaiburi estate, the

Yes


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total distance of road needed to be repaired consists of main road with approximately 4.5 km of distance and sub-main road with approximately 30.0 km of distance. At the time of audit, the achievement of main road maintenance for Chaiburi estate was 100% versus plan. However, only 20% was completed for sub-main road maintenance as it was frequently interrupted by rains. Apart from Chaiburi estate, Krabinoi and Khiansa estates also have their plans for road maintenance. At the time of observation, the maintenance works for main roads of Krabinoi and Khian Sa estates had been completed in the last 3 months (March) and will continue do in winter season again (November-February). The achievement of road maintenance program for Krabinoi and Khian Sa estates vis-a-vis the road maintenance plan was about 40% and 50% respectively. The main feature of road maintenance practiced by all estates is to compress and roll the soil surface by using road roller vehicle until it is smooth and hardened in order to minimize and control erosion especially in the rainy season.

Figure 5 Fragile soil map obtained from topography map of Royal Thai Survey Department


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Figure 6 Planting terraces constructed along contours for sloping areas

As there are no peat according to a HCV assessment, management of peat is irrelevant for UPOIC.


Practices to maintain the quality and availability of surface and ground water

UPOIC has a policy which states that UPOIC will not use surface and ground water for palm oil cultivation purpose in order to maintain availability of surface and ground water. However, the use of ground water will only be allowed for worker consumption and only in the summer season. In addition, estate has implemented reuse/recycle of effluent according to the work instruction WI-EST-026 rev 02/2012 dated 28/04/2012 which recommends that POME from the last wastewater treatment pond to be applied through constructed canals that are able to channel the POME from the wastewater treatment ponds to the fields. The objectives of this implementation as addressed in the work instruction are to use it as a form of fertilizer input, to reduce the budget for its disposal, and to reduce the pollution risk of effluent to the environment. The use/application of POME in the estate is shown in Figure 7. Moreover, not only making a reservoir but also there is another technique which is making weir to store rain water for use in estate. Estates will construct weir according to WI-EST-036 rev 00/2012 dated 01/02/2012 in order to store the rainfall, reduce the speed of flow and store the rain water for use in the estate as shown in Figure 8. The use of rainfall stored by weir will not cause any adverse impacts because there are no communities located in downstream area who need to use water from this canal for either human consumption or irrigation for their agricultural crops. Besides these water conservation measures, the estates have established practices to ensure that their operation will not cause undue degradation or contamination on quality of water from available sources within the estates. In particular, a buffer zone of at least 15 meters on both sides of the canals in the estates has been delineated to ensure that they are free of agrochemical usage. Further to that, quality test of water samples taken from canals will be done annually to verify whether there are residual of agrochemical contaminants in the water. Groundwater will not be used for irrigation purpose to increase FFB production for all estates. However, ground water is still being used for worker consumption at Krabinoi estate only. For workers consumption, water tanks are provided to all workers to enable them to store the rain water trapped from the roof. The monitoring of water quality will be done by sampling to ensure that water stored from rainfall is safe to drink.

In Thailand, there are no regulations for controlling the use of water from either water bodies or groundwater for the mill.

Yes


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Figure 7 The application of POME in the estate

Figure 8 Weir construction to dam up water


Pests, diseases, weeds and invasively-introduced species are effectively managed using appropriate Integrated Pest Management (IPM) Techniques

Estates has formulated an Integrated Pest Management (IPM) Program as addressed in the procedure IPM PM-EST-008 rev 00/2012 dated 01/01/2012. Another IPM practice is barn owl management/propagation (biological control) in the estate according to WI-EST-034 00/2012 dated 01/02/2012 which has been established by the estates to control rats that feed on the oil palm fruits or planting of host plants such as coral vine (Antigonon leptopus Hook), sage rose (Turnera ulmifolia L.), goatweed (Ageratum conyzoides Linn.), painted spurge (Euphorbia heterophylla Linn.), etc. for predator insects (predators are beneficiary insects that prey on plant pests) as shown in Figure 9. The IPM approach is implemented by incorporating cultural, biological, mechanical or physical methods to minimize use of chemical. Number of barn owl and their habitat are monitored monthly. The results of monitoring indicated that the number of barn owl has increased since releasing 7 male

Yes


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and female adult owls in the last 2 years. IPM techniques based on natural food chain control by encouraging the proliferation of snakes to eat up the rats were noted to have been practiced in all the estates. The monitoring of the pesticide usage was done properly. The records of either pesticide or herbicide used were found to tally with the figures in the stock card of pesticide inventory. Type of pesticide used in the estates composes of glyphosate and paraquat. In order to know the toxicity unit, the estate has calculated the toxicity unit by using quantity of active ingredient of paraquat or LD50 per ton of unit area. The result of active ingredient toxicity unit (kg/ha) was calculated based on the total amount of paraquat used in 2011 over the total areas applied. Based on the record of herbicide used, it was found that paraquat used in 2011 was about 550 liters covering a total area of 6,064.56 rai or equal to 970.33 ha. Thus, the result of active ingredient used was 0.15 kg/ha, where % of paraquat dichloride ai in Gramoxone is 27.6 % W/V.

Barn owl nestbox

Figure 9 Barn owl propagation for biological rat control


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

Choice of chemical pesticides used in all estates has been decided by Mr. Sarut Cholathan. The guideline for justifiying the choice of chemicals used was documented in WI-EST-040 rev 00/2012 dated 01/03/2012. The reasons for using paraquat and glyphosate were to reduce man power requirement, to reduce the cost of application, and to control weeds effectively. All types of chemicals kept in the stores and used in the estates were registered under the Hazardous Substances Act B.E. 2535 (and its amendments) of Thailand. The list of chemical product and registration number registered with Department of Agriculture are as follows:

Roundup from Monsanto with its main ingredient of glyphosate: Registration number 111/2540

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Gramoxone contains paraquat dichloride: registration number 2845/2544

Goldline contains metsulfuron methyl: registration number 151/2547

The estates have plans to reduce the use of chemical pesticide especially paraquat as indicated in the WI-EST-039 rev 00/2012 dated 01/02/2012 through the use of bio-control methods or manual labor. The estates planned to gradually reduce the use of paraquat in stages over the next five years.

Procedures have been established for the use of approved agrochemicals with the recommended dosages and application methods. The recommended dosage of each agrochemical mentioned above are: 300-500 cc/60-80 liter of water, 300-500 cc/60-80 liter of water and 3-7.5 gram/16-18 liter of water for application of Roundup, Gramoxone and Goldline respectively. These agrochemicals are always kept in stores which are secured with locks. Key to the store is only held by designated person responsible for chemical inventory and storage. Easy to read and understand MSDS of each agrochemical is displayed in front of the shelf where it is placed/stacked in the store. All workers who deal with the agrochemicals have been trained on MSDS and know how to apply them properly. The workers normally have many years of experience on herbicide spraying in the estate. The latest training on agrochemical application and MSDS was done on 29 June 2010.

Personal safety equipment or PPEs which include mask, rubber glove, and rubber boot are provided to workers who are responsible for chemical spraying and they must wear them properly and accordingly as shown in Figure 10. From the list of workers who deal with chemical spraying, it was found that 7 of them are woman. However, through interviews, it was found that none of them was either pregnant or breast feeding.

Figure 10 Personal safety equipment for worker who sprays agrochemical

Facility to clean and wash the containers, equipment and also PPEs after spraying are duly provided by the estates as defined in the work instruction WI-EST-041 rev00/2012 dated 01/02/2012. However, worker in Krabinoi estate and Khiensa estate have washed equipments and PPE in their house. For this reason, it was raised as major non-conformity under indicator 4.6.4.

Annual health check up is carried out for all workers including those applying agrochemicals. The total number of workers who have health examination done by Bangkok Occupation Medical Center during 17-20 October 2011 was 586 workers (Figure 11). Normally, a worker who is found sick will be temporarily moved to a lighter job and given medical treatment until he recovers. The results of medical check-ups for chemical spraying workers have revealed that no one has any serious condition that may be caused by the chemicals they sprayed such as hepato-pancreas damage.


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Other medical examinations carried out include lung integrity by lung function test, chest X-ray, physical examination, complete blood count, FBS, cholesterol, triglyceride, BUN, creatinine, SGOT, SGPT, mercury in blood, audiometry and vision tests.

Figure 11 Health check up during 17-20 October 2011


An occupational health and safety plan is documented, effectively communicated and implemented.

Estates have a safety, health and environmental policy. The monitoring of occupational health and safety is done through the form FM-SMR-015 to record any accidents that happen. Only one hand-cut injury accident occurred in Chaiburi estate and there were no other serious accident cases last year. The accidental occurrence of each estate will be summarized annually to calculate the lost time accident (LTA) rate. The meeting on health and safety issue between management and worker representatives as well as workers of each estate is held at monthly interval. Even though there were no records of accident which affected the health of worker seriously, a proper recording system is in place and ready for use at any time which includes : how and when the accident occurred, who was injured, root cause of accident, and the mechanism to deal with accident cases. For chemicals which are assessed to be potential injury hazard, there is a SOP for safekeeping of the toxic chemicals and also for keeping records on their use. An area sprayed with a toxic chemical would have a signboard posted warning people of the danger and telling them to keep away. Workers were informed on the first aid kits available in the workplace, including location of the first aid kits. First aid kits are also provided in sufficient numbers against the number of workers, maintained and stocked properly. First aid kits provided by the estates contained disinfectant solution, cover for hand-cut injury, medicine, plaster, for example. The person responsible for first aid treatment in mill and each estate has been trained on first aid on May 2012 by in-house training according to procedure SD-HRA-002 rev 03/2009 dated 20/20/2009. However, there is still some staff who deal with first aid missed the training. It was found during the assessment that no trained staff has been reassigned as OHS team member in CBE after the previous trained person was transferred to another estate. No sufficient evidence of training record could be shown for the current assigned staff (Ms. Nongluck T.). Based on this reason, a minor non-conformity was raised against Indicator 4.7.9.

With collaboration between estates and mill, the risk assessment FM-EMR-004 rev 02/2009 dated15/09/2009 has been established. Based on the results of risk assessment, it was concluded that there are 9 and 21 operational activities of the estate and mill respectively that might pose a

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threat on health and safety to the workers. Therefore, appropriate protective equipments and gears for workers who have to work under these activities are considered and needed to be prepared according to their mitigation plan. Estates and mill have identified and established the list of required PPEs from (SD-SMR-008 dated 09.06.2012) which among others indicated that for the process of hooking a chain in sterilizer station, the workers should wear ear plugs. However, during the assessment in the mill, it was found that no ear plugs were used by the workers while working in the sterilizer station. Besides, workers were not wearing proper PPE i.e. the shoe having no shoelaces (waste water plant staff). For this reason, a minor non-conformity was raised. Moreover, during the assessment in the estate it was found that there were no work instruction to inspect the conditions of the mask before use. Masks with filter made on 09.16.2005 but without the old expired filter being changed have been found in the storage room which is easily accessible to the workers. Based on this result, a minor non-conformity was also raised under the Indicator 4.7.6.


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

Mill / estate managers have identified the training needs in each section / department to organize an annual training program. The program in 2011-2012 included firefighting, handling of hazardous wastes, integrated pest control and agrochemical spraying. Some contractors are included in safety training conducted by safety engineers. The training is regularly evaluated for its effectiveness to ensure that all staff and workers are sufficiently trained. Almost all workers have received or will receive training in first aid (scheduled partially). The contracted workers are also offered training in safety issues with proper records kept. All the training records were checked during the audit. For independent farmers, the estates are considering to start giving the training on agronomic practices.

During the mill visit, the problem of lubricant leakage on the surrounding grounds of the transferring area in the mill (sterilization and crane area) was observed to have been neglected by the person responsible of the station (Mr. Songsak). As Mr. Songsak ( water treatment plant staff) was not aware and not trained on how to handle oil contamination to soil and water as per work instruction number WI-EMR-006 rev 01/09 dated 30/10/2009, a Major non-conformity was raised against this issue under Indicator 4.8.1.

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Environment aspects of estate 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.

UPOIC and estates have appointed their staffs who hold either Bachelor or Master degree on environmental background to assess the environmental impact by using the approach on environmental management system (ISO14001). Their environmental impact assessment for all sites of both mill and estates can be seen in FM-EMR-002 for year 2012. Not only has the assessment been done by their qualified staff, this environmental impact assessment report was also submitted to the Krabi Provincial Environmental Office for review. There was no negative comments from the Krabi Provincial Environmental Office on this EIA report. The environmental impact assessment has covered all activities that might cause adverse impacts on the environment such as noise, air quality, water quality, land use and etc. The environmental risk assessment was also conducted to determine risk scale on 3 levels : low (normal), medium (abnormal) and high (critical). Score of possibility of adverse effects is used to rank the impacts. Based on this system of scoring, it was assessed that explosions caused by oil and fossil fuel will have the highest score of possibility of adverse effect and could result in huge damages on both social and environment aspects. To deal with this case, work instruction WI-EMR-010 is established according to the mitigation plan described in the environmental impact assessment. The impacts on environment from estate operations could arise from agrochhemical usage, effluent from households in the estate and leakage of oil and fossil fuel. Documented procedures to mitigate these impacts on environment are entailed in plan to use barn

Yes


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owl to reduce the use of chemical as indicated in IPM WI-EST-023 Rev 02/2009 25/11/2009, plan to reduce the effluent from houses in the estate through the construction of water ponds to rear fish as discussed on 31/01/2011, plan to reduce the impact from broken or leaking oil containers as per WI-EMR-010 rev 01/2009 dated 30/10/2009 have been drawn up.

Criterion 5.2

The status of rare, threatened or endangered species and High Conservation Value habitats, if any, that exist in the estate or that could be affected by estate or mill management, shall be identified and their conservation taken into account in management plans and operations.

Currently, HCV was self-assessed by the mill and estates. It has not been approved by any RSPO recommended assessors as listed in RSPO’s website. For this reason, it was raised as a Major non-conformity which covered all indicators of criterion 5.2, namely, 5.2.1, 5.2.2, 5.2.3, and 5.2.4. However, based on the results of this internal HCV assessment, it was deduced that there are no endangered species as listed according to the red list under IUCN, Office of Natural Resources and Environmental Policy and Planning (ONEP) of Thailand. Consultations on 27 June 2012 with stakeholders living around the estates confirmed that neither IUCN red list nor list of endangered species in ONEP were found in the estates.

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Criterion 5.3

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

All places and activities which are considered to generate wastes and pollutions have been identified and the various management or disposal measures to deal with them have been listed in FM-EMR-025 00/2009 30/10/2009 and updated on 10/10/2011. Also taken into account were the various mill and estate operations and production processes which contribute to pollutions. . However, it was not sufficient as the waste water and sludge produced from the washing of chemical spraying equipment has not been identified as one of the potential waste and pollution sources. For this reason, it was raised as a Major non conformity against the Indicator 5.3.1. Moreover, the waste management and treatment plan for the identified waste was insufficient because there was still no inflow and outflow waste water analysis for the water tank used to hold the waste water comes from the washing of spraying equipment. There was also no appropriate treatment plan to deal with the water used for washing/cleaning of the chemical residues in spraying pumps/equipment as only sand was used to physically filter the water at the bottom of the tank. No biological decomposition process was used and this may lead to contamination of ground water. For this reason, it was raised as a Minor non conformity against the Indicator 5.3.2.

Used agrochemical containers are collected and kept in permanent stores sheltered from rain and with sufficient containment system to prevent any leakage of residual agrochemical that may remain in the containers due to improper cleanup of the containers. Besides chemical containers, it was observed that other hazardous wastes such as expired lamps and used batteries were not properly managed. The poor management of these 2 waste items in the store could give rise to some negative impacts to the environment as they contain some toxic substances. Workers could be adversely affected in case of any accident during the handling of such wastes. It was raised as a Minor non conformity against the Indicator 5.3.2.

Useable wastes and empty chemical containers were sold to and disposed off by the government authorized company, namely, Black Oil Co. Ltd which holds the license from Department of Industry Work no. 5501-2901 issued on 21 April 2012. This implementation was done through the waste management plan, stated in procedure WI-EMR-017 rev01/2009 dated 30/10/2009. This procedure mention the segregation of waste according to t ype of waste. List of hazardous and solid waste disposed by this company consisted of empty container, lamp, battery, used oil and filters. For estates which are not located close to the mill, they will coordinate with Black Oil Co. Ltd directly for disposal of waste and hazardous material. The records of waste and hazardous material disposed by

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Black Oil Co.,Ltd are kept in the respective estates with copies sent to the mill. EFB and POME were used as organic fertilizer for the palms near the mill in Krabinoi estate. Analyses of POME for BOD, COD and pH are done regularly to ensure the parameters meet the standards.


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

UPOIC and estates have plans to strive for continuous efficiency improvement in the use of direct as well as renewable energy. Utilisation of palm oil mill effluent to produce biogas would not only cut disposal expense, it could also reduce environmental pollution and increase company profit. For instance, 2 MW of electricity generated from biogas captured from the mill effluent is not only for sale to the public through the Provincial Elecrity Authority’s grid (PEA) but also for use in the mill. Meanwhile, another 1.2 MW of electricity to be generated by using fibre and EFB as major sources of biomass fuels is under consideration by PEA. Even though UPOIC could generate the electricity from renewable sources, the purchasing of electricity from PEA is still required at times of certain emergency or when the power generation system in the mill breaks down. Based on the record of energy used for all sites which include both mill and estates in 2011, a total of 208,908 kWH of electricity was purchased from PEA while 145,082 liters of fossil fuel were used for transporting FFB to the mills, for school bus and road maintenance etc. Records indicated that there were no significant difference in the two forms of energy used between January-May 2011 and January-May 2012, that is, the electrical energy used was around 92,856 kWH and fossil fuel was about 74,646 liters for the two said periods. Demand for the use of fossil fuel may increase if it is needed to use as a back up energy for generator when main turbine at mill and electricity supplies from PEA is shut down.

The estates have optimized the harvesting schedule in order to minimize the use of fossil fuel (diesel) for transporting of FFB to the UPOIC (Krabinoi mill). Krabinoi mill also plans to maximize the use of steam turbine to generate electricity when the quantity of FFB to be processed has increased in order to reduce the demand for electricity purchasing from PEA.

Yes

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 guidelines or other regional best practice.

All estates have a zero burning policy. In replanting, excavators fitted with chipping buckets are used for felling and shredding the mature palms that are over 25 years old. This implementation has been practised for more than 40 years or since the establishment of UPOIC. The palm trunks that are shredded are left to decompose in-situ in the field to effect the return of organic matter and nutrients back to the soil to improve soil fertility. In order to confirm the implementation of zero burning policy, site visit and interviews with local stakeholders for the 2007 replanted areas in Krabinoi estate were carried out during the audit. It was confirmed by those interviewed that no burning was carried out during the said replanting. Inspection of the estates housing areas confirmed that fire is not being used for disposal of wastes. Domestic waste (excluding bottles, cans and dispostable packaging) from housing areas in the estates is disposed of in landfill sites provided by the estates. Wastes produced by routine mill’s office activities are collected in waste containers or recycling bins prior to collection by a waste collector from local municipal office.

Yes

Criterion 5.6

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


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Prevention of pollution is part of UPOIC and estates policy on health, safety and environment (HSE). The committee for HSE was appointed by the Managing Director. They hold monthly meeting to identify and discuss issues on health, safety and environment that are affected by pollutions. The identification of emission source is available in FM-EMR-025 00/2009 dated 30/10/2009. There were no any leakages of POME into water bodies from the wastewater treatment pond of the mill or from the fields of Krabinoi estate where POME was applied. Pollution in UPOIC comes mainly from boiler, generator and vehicles. To prevent pollution, especially noise from these machines, appropriate silencers have been purchased and installed to reduce the noise level. The monitoring of the emission parameters has been done according to the requirements of ISO14001 and also the requirements of “promoting the establishment of power generation, social responsibility and sustainable peace” project under the Department of Industry Work. The monitoring carried out at proper intervals is aimed to ensure that the inevitable pollution and/or emission released from the operation of UPOIC will not impact negatively on the overall health and safety of the neighboring communities and also the environment at large. Every 6 months, the Safety Technology Office will check and test the operation of boiler, sterilizer and back receiver to ensure that they are still able to operate safely. The emissions from these machines such as noise, waste air and water are being tested by United Analyst and Engineering Consultant Co.,Ltd, an independent accredited laboratory which has the ISO/IEC 17025:2005 certification. The results of monitoring for all emission sources i.e. total suspended particulate, sulphur dioxide, oxides of nitrogen as nitrogen dioxide, carbon monoxide which are parameters for air quality are done by United Analyst and Engineering Consultant Co.,Ltd as a part of requirement that must be submitted to the Department of Industry Work. The result of each parameter tested was compared against the standards i.e. Industrial Emission Standards, Notification of the Ministry of Industry, dated December 4th 2006; Opacity Standard, Notification of the Ministry of Industry, dated December 4th 2006 and Notification of the Ministry of Natural Resources and Environment, dated December 9th 2005. It was found that there were no emission parameters that exceeded the required standards set by the relevant authorities.

Therewas a major nonconformity (NC) on no best practice to avoid contamination of surface water by run-off from contaminated grounds tainted by lubricants and other oils. . Besides lubricant drops were found on the surrounding ground of transferring areas (sterilisiation and crane area), there were also lots of lubricant leaking from the water pump (maintenance process) into the waste water pond where the POME is used for land application. No bund wall was constructed to prevent lubricants from dropping into the waste water pond and there was no sand around the area to block out the oil as instructed in WI-EMR-006 rev 01/09 dated 30/10/2009.

It was observed that the workers did not know how to manage the leakage of lubricant drops and did not handle the scooped up lubricant properly.

NC8 of 8

Criterion 6.1

Aspects of estate 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.

Social impact assessment was conducted by qualified staffs who are involved in establishing the corporate social responsibility (CSR – DIW) through a participatory approach during the consultative meeting in each estate (the most recent consultative meeting was held at Chaiburi estate on June 27th, 2012) and using questionnaire to confirm with stakeholders whether they have been affected by the operation of UPOIC and estates. The overall results of social impact assessment from the questionnaire survey will be used to formulate the mitigation plan to reduce the negative impacts on stakeholders. However, based on the results of public consultation meeting held on 27 June 2012, there were no negative social impacts raised by the stakeholders. Manager of each estate is authorised by the top management to handle any matters and issues raised by stakeholders in order

Yes


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to ensure that constructive feedbacks from any stakeholders can be acted upon and resolved immediately. Inspection of documentation at sites visited (Khiansa estate, Krabinoi estate and Krabinoi mill) showed that social impact assessment report, compiled from integrating the results of public consultation meeting at each estate and questionnaire survey into a single integrated report, was available during the assessment. Based on this report, it was confirmed that both mill and estate operations did not cause negative social impacts to stakeholders and communities around the mill and estates.Review of the minutes of public consultation meeting at Khiansa estate and Krabinoi estate also confirmed that there were no any negative social impacts raised by stakeholders who participated in the public consultation meeting.

In addition, UPOIC has successfully won the outstanding CSR-DIW Continuous Awards 2011 awarded by the Department of Industry Work.

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

UPOIC and estates have an effective communication and consultation procedure PM-EMR-005 rev 04/2012 dated 01/03/2012 with local communities and affected persons or even any interested parties. The consultation procedure requires that public consultation meeting be held at least once a year. Consultation meeting with external stakeholders of the mill and estates has been carried out for year 2012 to meet the objectives and requirements of communication and consultation procedure PM-EMR-005 rev 04/2012 dated 01/03/2012. Manager of each estate is assigned by the top management via letter 04/2012 on 22 February 2012 to handle any stakeholder issue immediately if it is assessed to have potential negative impacts on the estate based on the complaints and requests raised by them. Mr. Sarut Cholathan, the top management at UPOIC, will control the responsibility for communication and consultation with stakeholders and to ensure that community programs are run effectively. The topics that will be discussed during the public consultation meeting consist of : policy of UPOIC and estate, result of external audit, procedures (Procedures related to how to give complaint and grievance, steps to deal with complaints and grievance, and how to request for reviewing documents relating to environmental, social and legal issues), commitment (commitment related to the operation of the business with the consideration of impacts that may affect the stakeholder, transparency and maintenance of good relationship with the communities as well as policy related to discrimination, respect for social groups such as the worker union, sexual harassment, and woman labor), emergency plan, laws and regulationis, accidental records, risk assessment, occupation, safety, mitigation plan and possible impacts. The stakeholders are always given the right to express their opinion freely on the topics opened for discussion. A list of stakeholders include local communities, statutories, local governments, head of communities, NGO (if any), contractor, women representatives are kept and maintained properly. The last record of list of stakeholder is done on 4 February 2012. The change of person on the list is monitored by the estate manager.

Yes

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.

UPOIC and estates have a complaints, grievance and dispute procedure integrated in its communication procedure. Based on the minutes of public consultation meeting at Chaiburi estate done on 4 February 2012, it was revealed that there were no evidence of disputes and complaints raised by stakeholders and neighboring communities. The documented dispute procedure states that in case a dispute is unable to be resolved by two parties, the matter will be referred to the court for a final solution. For external complaints and grievances, complaints box is available for external stakeholders to drop in their complaints and grievances. Currently, there are no complaints from either external stakeholders or their employees. To ensure that the stakeholders and employees

Yes


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have the right to give the complaints and grievances, the procedures have been communicated and disseminated to all stakeholders at mill and each estate. It was noted that the responses from stakeholders have been positive. During visits to stakeholders, the audit team confirmed that there were no complaints, grievances and disputes at the moment. Local communities and stakeholders obey and respect the company legal rights, reciprocated by the company’s respect for their traditional rights.

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 stake-holders to express their views through their own representative institutions.

In this certification assessment, the audit team studied the whole compensation mechanism, and found that it is satisfactory and thus far, no legal action has been taken against the company by any party. The compensation mechanism indicated in PM-PSRO-002 rev 01/2012 dated 29/06/2012 has been communicated to stakeholders through the public consultation meeting. Currently, all the cultivated lands under the company are owned by UPOIC and the estates since many decades ago. Based on the results of public consultation meeting for all estates and mill as well as interviewing with local communities, it was confirmed that there is no outstanding claim on any land.

Yes

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.

Minimum wage payment is the common term that the company needs to follow as it is mandated by tthe Department of Labor of Thailand. The minimum wage for Krabi province during the period of assessment is 257 Baht/day announced by Krabi provincial labor office on 5 March 2012. The salary, wage and conditions of work that conformed to the legislation of Department of Labor are described in the contracts signed between the company and all workers. The original contract of each employee is kept at the UPOIC office and copied contract is also given to employee. The terms and conditions specified in the contract are in line with all the legislations such as working days, working time, salary levels, regional minimum pay and employee insurance. The contract of Ms. Kanchana Marat, a chemical spraying worker was inspected during the assessment. It was signed between Mr. Sarut Chonlatham, the top management, and Ms. Kanchana Marat on 23 June 2006. It found that she received 2,495.80 Baht from working during 1-15 June 2012. The average daily wage was found to comply with the legislated minimum wage of 257 Baht/day as she worked only 8 days at an average of 2-3 working hours/day.

All employees even contractor have been provided with the suitable housing, water supplies, medical care and welfares by the company. Worker housing receive piped potable water which is tested regularly to ensure that it is safe for human consumption. Water tanks are also provided for the workers to trap and store rain water for drinking purpose. It is also tested regularly to ensure it is always safe for human consumption. All workers housing are also provided with free electricity for the first 50 units. If some workers used electricity more than the maximum limit, they have to pay for the extra units used as it would be unfair to workers who do not use high electricity consuming devices, especially air conditioner. Important statement of labor policy such as non discriminatory practices and forced labor are mentioned in the work agreement or contract so that employee/contractors can know their right and policy before working. Workers and contractors are entitled via the terms of their contract /agreement to have their reimbursement for medical expenses in case they cannot recovered from their sickness through normal medical treatment and have to be admitted to the hospital. Houses are provided for the contractors and their staff. Interviews with harvesting contractor team leaders(Mr. Suthee Polpakdee, and Mr. Khongsee Sankhote) revealed that the estates paid a harvesting rate of 550 Baht/ton of FFB. As it is piece-rated, the total wage payment receivable from the estate by the harvesting contractor team leader is based on the total tons of FFB harvested by

Yes


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his team x 550 Baht/ton. After deducting all costs involved and the income due to him, the balance of the payment is to be divided equally by the contractor team leader to all his harvesting team members. Inspection on available records in the estates showed that the team members actually earned more than the minimum daily wage of 256 Baht/day which is about 2 times the minimum daily wage.

As there is no school in the estates, all school going children are provided with free bus service by the estates. Playgrounds for children are also provided by the estate. Children who have good GPA results in study will be offered scholarships by UPOIC.

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.

Employees of UPOIC and all estates have the right to freedom of association to form or join labor union. This was made known to the employees through announcement letter HRA06/2555 on recognition of freedom of association signed by the Managing Director on 22 February 2012 that is displayed at the notice boards of the estates and mill. Workers in all sites did not form any labor union or join any labor association at the time of this assessment. Instead of labor union, workers in each estate will elect their own leader from among themselves. The elected worker will function like a village headman. While the leader will be responsible to raise issues of concern to the estate manager, nevertheless, all workers will still have the right to raise their concerns when necessary. Various topics of interest were discussed in the meeting between Management and representatives of worker, women representative and security officer held on 23 June 2012 at Chaiburi estate.

Yes

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 programs. Children are not exposed to hazardous working conditions.

A policy on child labor dated 22 February 2012 was signed by the Managing Director on behalf of the mill and all estates. No worker under 18 years of age is allowed even though the RSPO P&C for Thailand (TH-NI) indicated that employers can hire employees /workers of 15 years of age or less. Review on records of date of birth and date of commencement of work for all employees confirmed that no worker under 18 years old were employed by the company. Work site observations made by the auditors indicated that there were no children working in either the mill or estate.

Yes

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.

UPOIC and estates have a policy publicly published on 27 July 2012 regarding equal opportunity of employment with promotion mainly based on merit. This policy is also socialized in contract/agreement with either worker or contractor. The personnel department located in UPOIC is responsible to identify and recommend candidates for promotion. Job vacancies are posted on notice boards of UPOIC and estates when new recruitment is needed. It was observed that the details of job vacancies posted on the notice boards only stated the position required, basic qualification either education background or working experience. No words of discrimination with regards to gender, religion and nationality were evident on the job vacancy notice. Observations indicated there are more migrant workers from the northern and north-eastern regions work in estate compared to those

Yes


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from southern provinces where all the estates are located. Hence, there is no discrimination on migrant workers. Apart from that, it was also observed that some posts in the mill and estates such as Assistant Estate Manager, Environmental Officer and even sprayers are held by both male and female personnel. However, all estate managers are male.

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.

UPOIC and all estates have a policy on prevention of sexual harassment displayed at various locations in mill and estates. Policy on sexual harassment was signed by the Managing Director on 1 August 2009 and available in the notice board of each estate. The policy also contains rules for enforcements which are a part of CSR program. Rules for enforcement have been given through the training for workers according to Thailand’s labor standard to ensure their understanding. Records of the training done during 10, 11 and 31 August 2009 are kept and maintained. A gender committee chaired by Mrs. Yuppadee Opaspimoltham has been set up and announced through letter numbered 031/2554 dated December 28, 2011, signed by the managing director. This committee consists of 11 members. The rules of this committee will apply to any issues of concern to woman with reports directed to the top management of the company. Female employees are entitled to pregnant and childbirth leave of 3 months for each instance and also allowed to breastfeed for up to 6 months at least 30 minutes everyday. The procedures to deal with cases of violation to women have been made known to women employees in order to ensure that they understand the grievance mechanism. The result of interviews with women employees indicated that they understood the policy and knew the grievance mechanism for complaints such as report to any members of gender committee chaired by Mrs. Yuppadee Opaspimoltham.

Yes

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

UPOIC has made fair, legal and transparent agreements with its suppliers/subcontractors and independent farmers. Even though there are no purchase contracts to bind the smallholders they will be informed by the mill on the daily FFB price through phone. A list of FFB smallholders contained in FM-FFB-026 dated 26/06/2012 is kept and updated for the purpose of informing the daily FFB price. The smallholders are free to decide where to sell their FFB. The price of FFB is determined by the purchasing department located in UPOIC. It is done according to the procedure of FFB price calculation PM-FFB-001 Rev 08/2009 dated 15/09/2009. The daily price of FFB will be posted at the mill gate for 3 possible grades of FFB with OER at 13%, 15% and 17%. The rates of price discount for bad quality FFB are also made known to the smallholders. FFB which are unripe, empty or damaged will be imposed a price discount of 10% by the mill. However, in practice, it would not be done because FFB supplied by UPOIC’s own 7 estates is not sufficient. As such, irrespective of quality, all FFB from smallholders are duly accepted without price discounts by UPOIC mill. This goodwill gesture is practiced by the mill to prevent the smallholders from selling their crops to other mills. During the date of assessment 26-29 June 2012, it was observed that the FFB price posted at the mill gate was 5.55 Baht/kg FFB. Records of pricing mechanism for FFB in the last year were observed. It was available for the public review when needed. It was surprised to observe that the payment to smallholder comparing to the gate price throughout year 2011 was different. In fact, UPOIC has actually paid higher FFB price than price posted at mill gate as a strategy to attract more smallholders to sell their crops to UPOIC. Although there is no contract agreement with smallholders for FFB price payment, all smallholders who have been selling their crops to UPOIC for decades understood the mechanism of payment well. The outcome of interview with some smallholders confirmed that they understood and accepted the terms of payment for FFB by UPOIC.

Yes

Criterion 6.11

Grower and mills contribute to local sustainable development wherever appropriate.


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UPOIC has registered with the Department of Industrial Work to get the certificate of compliance to standard for corporate social responsibility (CSR – DIW) B. E. 2552 (2009), according to ISO 26000 standard (Social Responsibility). They have been audited by MASCI, the local certification body, and received the compliance certificate on September 22, 2009. Surveillance audit is not needed. The company only has to send annual report to MASCI. Then, MASCI will send it to the Department of Industrial Work for considering to issue the award. The latest CSR-DIW is done for year 2011 and UPOIC has received award from the Department of Industry Work. On September 3, 2010, UPOIC has set up a Corporate Social Responsibility Committee. The CSR committee is divided into several teams to handle different issues, such as consumer’s issues, good governance issues, etc., including local community’s issues. The dedicated team for local community’s issues which is temporarily chaired by Mr. Sarut Cholathan, the business development manager, replacing the factory manager who resigned by the end of January 2012. Assessment has been done for CSR activities in 2011. For example, UPOIC has donated plants to a local school for 84

th Thailand King’s birthday

celebration on September 23, 2011. Recent donation was done in January 26, 2012, where UPOIC gave 50,000 THB for park flooring renovation, which was requested by the district office on January 12, 2012 via letter number 73501/033.

Yes

Criterion7.0

No new planting planned on any estate included in the scope of this assessment.

Principle 7 is not applicable to this assessment.

Criterion 8.1

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

The company can clearly demonstrate improvement in quality, environmental safety and health management system. There was a mechanism through internal audit that enables the mill and estates to regularly monitor and review their activities, develop and implement action plans that allow demonstrable continuous improvement in various key operational areas. The internal audit was conducted on March 21-23, 2012 and audit record was maintained. Below are examples of improvement that had been made, with regards to:

a. Reduction in use of certain chemicals: The estates planned to gradually reduce the use of paraquat in the next five years as mentioned in Criterion 4.6 above.

b. Environmental and social impacts: measured and monitoring the environmental parameter and reported to the local environmental agency of Krabi Province.

c. Waste reduction: conducted the waste management practices by segregation of waste from its sources, as mentioned in Criterion 5.3 above

d. Pollution and emissions : measured and monitoring the pollution and emissions and reported to the local environmental agency of Krabi Province. So far, the process of preparing another future continuous improvement plans is still ongoing. Auditor will check this in the next annual surveillance audit.

Yes


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3.2 Identified Non Conformances

This section gives an over view of new or revised non-conformities raised during this assessment and of action taken to close out non-conformities arose during the previous assessments.

3.1.1 Detail of Non Conformity

Non Conformity Report – UPOIC-001

Pre-Audit Surveillance Audit No.____ Re-Audit ID No. :

Certification Audit Re-certification Audit Extension Audit Date : June 26-30, 2012

Company : UNITED PALM OIL INDUSTRY PUBLIC COMPANY LIMITED (UPOIC)

Mgt. Rep. : Mr. SARUT CHOLATHAN

Lead Auditor : ANITA MASDUKI S. Auditor(s) : CHAIYAPORN SEEKAO

Standard(s) : RSPO P&C TH-NI (June 07, 2011)

Date of issued : June 30, 2012 Discussed with : RSPO Team

Location : Krabi Noi Estate (KBNE) and Khiensa Estate (KHE)

RSPO – Indicator : 4.6.4

Appropriate personal safety equipment must be sufficiently provided and used.

Description of Finding/Objective Evident:

Methods to deal with spraying equpment after the use of chemical spraying showed in WI-EST-041 rev00/2012 dated 01/02/2012 stated that only designated area is allowed to wash equipment or PPE that are used for spraying chemical pesticides. However, workers in Krabi Noi estate and Khiensa estate have washed the equipment in their houses instead

Classification Major Minor

(Management Representative) (Lead Auditor) (Auditor(s))

Correction of nonconformity (by company): Date of correction :

Refreshment training agrochemical usage has been given to all workers who deal with

chemical spraying. Workers in Khiensa Estate and Krabi Noi have been retrained on

26/7/2012 and 10/8/2012, respectively

(Mng. Rep.)

Cause of nonconformity (by company):

Workers were not aware of the requirement to wash chemical spraying equipment after use at the designated area.

Corrective action planned (by company): Deadline for implementation :

Refreshment training needs to be given to workers dealing with chemical spraying. It was

expected to be given to workers at Khiensa Estate and Krabi Noi on 26/7/2012 and 10/8/2012

respectively.

(Mng. Rep.)


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Lead Auditor : ANITA MASDUKI S. Auditor : CHAIYAPORN SEEKAO



Location : Krabi Noi Estate (KBNE) and Khiensa Estate (KHE)


Provide appropriate protective equipment and gears. Such equipment and gears must be effective and ready to use


There are no monitoring system of conditionin applying PPE by each worker.:

Workers were not wearing proper PPE, ex. The shoes wore by a worker at the wastewater treatment plant have no shoelaces,

no ear plugs were used by workers while working in sterilizer station.

In PPE list identification form (SD-SMR-008 dated 09.06.12), it was indicated during the process of hooking a chain, the workers should wear ear plugs even though the result of the noise level monitored on 27.07.2011was 87.6 db (below the standard of 90db ).

No work instruction to inspect the conditions of the mask before use. Mask with filter that was made on 09.16.2005 was still being used without changing the old expired filter.




1. Workers that work in the mill and estate have been given the re-training for wearing PEE

properly on 3/8/2012 and 10/8/2012, respectively f . Monitoring of workers for wearing PPE

is done montly by using form FM-SMR-020 Rev 00/2012

2. Work instruction for managment of PPE properly PM-SMR-006 Rev 00/2012 was

established and released on 1/8/2012. The workers at mill and estates were informed of

these instructions during the training.

(Mng. Rep.)


1. Workers were not aware of the compulsory requirement to wear the PPE provided by the company because they felt inconvenient to

wear them while working.

2. There was no work instruction to monitor the condition of the mask before use.


1. Refreshment training will be given to workers after finishing the establishment of work

instruction.

2. Working instruction for management of PPE need to be established and defined the proper

interval time of use

(Mng. Rep.)


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Date of issued : June 30, 2012 Discussed with : OHS Team

Location : Chaiburi Estate (CBE)


Provide trained staff on first aid for both mill and plantation


No trained staff has been reassigned as OHS team in CBE after the previous trained person was rotated to work at another estate. No

sufficient evidence of training record could be shown for current assigned staff (Ms. Nongluck T.)




Refreshment training on OHS and first aid for Ms. Nongluck Tepkamnerd have been given by

Khoa Panom Hospital on 26/7/2012. Ms. Nongluck T. has been given the certificate from Khoa

Panom Hospital.

(Mng. Rep.)


New employee or promoted employee has not been given the required training especially first aid and OHS.


Refreshment training on OHS and first aid for Ms. Nongluck Tepkamnerd will be given by

Khoa Panom Hospital because they are specialist for first aid and health concerns.

(Mng. Rep.)


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Location : KRABI NOI Estate (KBNE)


Training program for each work duty - Growers and mills should provide trainings and prepare documents for all employees/workers and contractors so that they can review the materials later. These should enable them to fulfill their jobs and duties in accordance with the procedures, and in compliance with the requirements of the principles, criteria and guidance. Training curriculum should take into consideration the need of employees/workers. Contractors should be selected for their ability to fulfill jobs and responsibilities.


Mr. Songsak (wastewater treatment plant staff) was not aware how to handle oil contamination to soil and water as per required by

work instruction number WI-EMR-006 rev 01/09 dated 30/10/2009.




Refreshment training on pollution management has been given by the company on 6/8/2012

for both Mr. Songsak and also other workers. The material of training covers pollution control

addressed in work instruction WI-EMR-006 rev 01/09 dated 30/10/2009, and WI-CPO-014 for

withdraw the oil and lubricant from warehouse

(Mng. Rep.)


Worker was lackadaisical in handling the oil and lubricant drops even though he has seen the leakage or drop.


Refreshment training for not only Mr. Songsak but also for concerned workers will be provided

by the company.

(Mng. Rep.)

Lead Auditor or Auditor, Date Lead Auditor or Auditor, Date


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Location : KBNM and all estates

RSPO – Criterion : 5.2

5.2.1 (Major) Assessment and identification, if any, of high conservation values (HCVs) areas within the boundaries of plantation or mill

5.2.2. (Major) HCV habitats and Endangered, Rare, Threatened Species (ERTs) conservation management plan

5.2.3. (Minor) Compliance with relevant legal requirements on conservation of species and habitats

5.2.4. (Minor) Avoiding damage to and deterioration of HCV habitats


5.2.1. HCV assessment report has been done by the mill and estates but it has not been approved yet by an appointed RSPO

assessor.

5.2.2, 5.2.3., 5.2.4. as above.




HCV was assessed by WildAsia during July 30th- 31

st and August 1

st-3

rd , 2012. Based on the

results from HCV assessment, there were no HCVs in all estates and mill. There is not

necessary to establish the conservation management plan to avoid damage and to prevent the

deterioration of HCV habitats.

(Mng. Rep.)


The company expected to use Thai HCV assessor who got the approval by RSPO for their HCV assessment. However, there was no

Thai HCV assessor approved by RSPO EB before conducting the certification audit


The company planned to engage WildAsia to conduct the HCV assessment by first week of

July so that the company can receive the completed HCV assessment report from Wild Asia

prior the due date that major nonconformities need to be closed within 60 days.

(Mng. Rep.)


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Date of issued : June 30, 2012 Discussed with : OHS Team

Location : KRABI NOI MILL (KBNM)


Obtain the list of waste and pollution sources from main operational activities


The list of waste and pollution sources identified in FM-EMR-002 rev 01/2009 dated 15/09/2009 which was updated on 10/10/2911 was

not sufficient because the wastewater and sludge produced during the washing process of chemical spraying equipment have not been

identified yet as one of the potential waste and pollution sources.




EIA and list of sources of pollutants identified in FM-EMR-002 has been revised on 15/7/2012

by taking impacts from this activity into account. Working instruction WI-EMR-002 Rev

00/2012 effective date 15/7/2012 was established to deal with sources of pollution from that

activities.

(Mng. Rep.)


Some important activities especially wastewater and sludge produced during the washing process of chemical spraying equipment

were not taken into account to assess the impacts on environment and social


EIA and list of sources of pollutants will be reviewed by taking all activities into account.

Working instruction to deal with sources of pollution from those activities will be established

(Mng. Rep.)


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Date of issued : June 30, 2012 Discussed with : CSR Team

Location : Krabi Noi Mill (KBNM) and Khiensa Estate


Identification and monitoring of waste and pollution sources

Dispose surplus chemical containers appropriately and safely. The containers should be disposed or cleaned according to the instruction on the label or

in an environmentally and socially responsible way (e.g. return to the vendor or use a triple rinse cleaning method), such that there is no risk of

contamination of water resources or to human health.


No inflow and outflow of wastewater analysis for the water tank used to hold the waste water comes from a washing process of spraying equipment.

Hazardous wastes and chemical containers such as lamp and used battery are not maintained properly. There are also no dedicated room which is

closed and roofed for dealing with hazardous wastes .

The system for dealing with the water used to wash/clean the equipments after spraying with chemicals that are not easy degraded biologically is not

appropriate because it is only filtrated physically with sand in the bottom of tank which may affect to the ground water




1. New enclosed facility with good roof and screen has been constructed on 10.8.2012 for storing the

empty containers and other hazardous wastes

2. New system which is similar with septic tank for dealing with the water used to wash/clean the

equipments after spraying with chemicals was installed and replaced the filtrated physical with sand in

order to prevent any seepage into the ground. Then, the estate will pump water used for washing and

cleaning equipment from this tank to reuse in spraying in the estate

(Mng. Rep.)


1. Facility to deal with chemical containers, lamp and used battery is not properly provided with good roofs and not animal instrusion proof.

2. Physical filtration with sand to deal with the water used for cleaning spraying equipment could not prevent any contamination to the environment

properly. Rinse water after washing and cleaning of spraying containers is not reuse to spray the weed in the estate.


1. New facility with good roof, screen and close need to be constructed to deal with the empty

containers and other hazardous wastes

2. Physical filtration with sand needs to be changed to a proper system to provide water for

cleaning after-use spraying equipment.

(Mng. Rep.)


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Lead Auditor : ANITA MASDUKI S. Auditor(s) : CHAIYAPORN SEEKAO


Date of issued : June 30, 2012 Discussed with : Engineering Team and OHS Team

Location : Krabi Noi Mill (KBNM)

RSPO – Criterion : 5.6

Surface and ground water management plan - The water management plan may include:

Avoiding contamination of surface and ground water from run-off of soil, nutrients or chemicals, or as a result of inadequate control of waste disposal, including POME from the mill.


Lubricant dropswere found on the surrounding ground of transferring area (sterilization and crane area) as well as waste water

pumping area. At the waste water pumping area, lots of lubricant from the pump (maintenance process) dropped into the waste water

pond whose POME is to be used for land application. There are no containment system to prevent lubricants from leaking into the

waste water pond and there are no sand provided around the area to block out the lubricant as instructed in the working instruction no.

WI-EMR-006 rev 01/09 dated 30/10/2009.




Workers who deal with the lubricant or oil have been re-trained on 6/8/2012 in the subject of

pollution management and relevant work instructions i.e. WI-EMR-006 rev 01/09 dated

30/10/2009 to refresh their awareness in the management of sources of pollutants. The

problem areas were provided with sufficient containment system to prevent any leakage and

sand to trap all lubricant and oil to prevent any recurrence of contamination.

(Mng. Rep.)


It was observed that the workers did not know how to manage the leakage of lubricant drops and did not handle the scooped up lubricant properly.

Workers at the waste water pumping area did not know how to manage the leakage of lubricant drops on the ground and did not handle

the scooped up lubricant properly.. They were also not implemented according to the work instruction no. WI-EMR-006 Rev 01/09

dated 30/10/200 - to use sand to block the lubricant drop or leakage.


Refreshment training to workers who deal with the lubricant and oil planned to be done on

6/8/2012 by using the relevant working instructions. Designated area that used to store the

lubricant and oil from every activities and places will be expanded the capacity and area. It

expected to finish construction in October 2012

(Mng. Rep.)


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OPPORTUNITY FOR IMPROVEMENT (OFI):

P&C OFI

4.1 Document control and announcement of relevant policies should be practiced in the same way for all estates

4.2.1 Should take into consideration the shelf life of fertilizers imported from Philippines.

4.5.3 Equation to calculate toxicity unit for all estates should be developed by central office so that each estate can adopt for fulfillment easier

4.6.7 Khun Song Heawchaipoom, who was confirmed to suffer from hepatopancreas (B) in 2011 which was not detected in 2010 is still working as a chemical spraying worker. If the result of health checkup for year 2012 still remains the same, the estate needs to consider posting him to a new area of work.

4.6.8 Plan to reduce the chemical should consider the amount of chemical used in each estate.

4.7.4 KBN Mill : Unrelated items (other than medical tools and medicine) such as ointment found in the first aid kit box at production area.list of medicine and monitoring control for expiry date as well as the quantity should be established.

4.7.6 ALL: Monitoring form for used PPE condition

It should be ensured that all fire extingushers are subjected to regular and proper inspection and record.

Table 3-2 Resume of Audit Results

Indonesian National Interpretation of RSPO Principles and Criteria

P&C 1.1 1.2 2.1 2.2 2.3 3.1 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 5.1 5.2 5.3 5.4 5.5 5.6 6.1 6.2 6.3 6.4 6.5 6.7 6.8 6.9 6.10 6.11 7 8.1

Status

1 1 1 1 1 1 1 1 1 3 1 3 2 3 1 3 3 1 1 1 1 1 1 1 1 1 1 1 1 1 NA 1

#NC 0 0 0 0 0 0 0 0 0 1 0 2 2 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 - 0

NOTE: Audited:

“1” Conforming; “2” Minor Non-Conformity; “3” Major Non-Conformity; “NA” not applicable, “#NC” : Number of Non-Conformities found

AUDIT OUTCOME

During this audit, 5 Non-Conformities MAJOR

3 Non-Conformities MINOR

3.2 Issues Raised by Stakeholders

The audit team did not receive any major issues and comments for consideration from the public

consultation meeting on environmental impacts or social performance of the mill and estate operations.

Most of stakeholders agreed that UPOIC and estates have had a positive influence in the area. Interviews

with the stakeholders were used to obtain feedback whether positive or negative by using the following

question for example:


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Did UPOIC and estates provide information on the RSPO certification exercise including plans for

safety and health to the public and stakeholders?

Does UPOIC and estates hold regular meetings on community development?

Does UPOIC and estates respond well to complaints in respect of RSPO P&C implementation?

Is there a clear grievance and complaints procedure in the company?

Are there still any complaints on land acquired by estates for planting oil palm?

Is there any environment impact caused by the operations of either UPOIC or 7 estates?

Are there any conflicts not yet solved satisfactorily?

Is there a procedure for settlement of conflicts communicated to the local community?

Does UPOIC and estates meet with stakeholders regularly to discuss on issues on community

development?

Are the workers paid in accordance with government regulations?

Is there a system to disseminate information quickly in emergencies to the local communities

around the palm oil mills and supply bases?

Are there any flora and fauna found in estates or even nearby estates?

Have stakeholder ever asked for any information and data to ensure the transparency for the

estate and mill? If yes, what kind of document did you review?

Result of the public consultation with stakeholders are reported under the principle 6 above.


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4 Certified Organization’s Acknowledgement of Internal Responsibility

4.1 Formal Sign-off of Assessment Findings

I the undersigned, being the legal representative of the inspected company, agree with the contents of this

report and accept the liability in execution of the instructions given in the report.

Signed for and on behalf of

UNITED PALM OIL INDUSTRY PUBLIC COMPANY LIMITED

Jakarta - March 6, 2012

Head of Operations, Environment and Sustainability

(Mr. Sarut Colathan)

Signed for and on behalf of PT. TÜV NORD Indonesia – System Certification Management

Jakarta - March 6, 2012

Lead Auditor

(Anita Masduki)


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APPENDIX A List of Abbreviations

BOD Biological Oxygen Demand NC Non Conformity

OER Oil Extraction Rate

CPO Crude Palm Oil

CSR Corporate Social Responsibility OSHAS Occupational Safety and Health Assessment Scheme

EFB Empty Fruit Bunch P&C Principle and Criteria

EMS Environmental Management System

FFB Fresh Fruit Bunch PK Palm Kernel

GPS Global Positioning System PKB Perjanjian Kerja Bersama (Collective Agreement)

HCV High Conservation Value POME Palm Oil Mill Effluent

HCVF High Conservation Value Forest PPE Personal Protective Equipment

R&D Research and Development

IPM Integrated Pest Management

RSPO Roundtable on Sustainable Palm Oil

RSPO NI Roundtable on Sustainable Palm Oil National Interpretation

SA8000 Social Accountability 8000

MOU Memorandum of Understanding SIA Social Impact Assessment

SOP Standard Operating Procedure

MSDS Material Safety Data Sheet


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APPENDIX B Draft of Certificate

C E R T I F I C A T E In accordance with TÜV NORD Indonesia procedures, it is hereby certificate that given to

United Palm Oil Industry Public Company Limited (UPOIC)

Head Office:

98 Moo.6, Nuaklong-Khao Phanom Road, Huayoong, Nuaklong District. 81130 Krabi, Thailand

Krabinoi Mill and Supply Base

Mill Location

GPS Location

Longitude (N) Latitude (E)

Krabinoi mill

98 Moo.6, Nuaklong-Khao Phanom Road, Huayoong, Nuaklong District, Krabi 81130 Thailand

50o24’69.14” 90

o17’54.38”

Applies a Sustainable Palm Oil Management System in line with National Interpretation of RSPO Principles and Criteria for Sustainable Palm Oil Production of Republic of Thailand vers.2011

Production of Crude Palm Oil and Palm Kernel

CPO Tonnage Total Production 20,000 t

CPO Tonnage Claimed 20,000 t

Palm Kernel (PK) Tonnage Total Production 5,000 t

Palm Kernel (PK) Tonnage Claimed 5,000 t

Certificate Registration No: xxxxxxx

Audit Report No. xxxxx

Issued date of Certificate : xxxxxx Valid Certificate : xxxxx


Robert Napitupulu

President Director

This certification was carryout in accordance with the TÜV NORD Indonesia auditing and certification procedures and is subject to regular surveillance audits.


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An n e x t o C e r t i f i c a t e – R S P O ( Su p p l y Ba s e )

Certificate Registration No: xxxxx

Following Certification Scope of Mill Supply Base is

Estate Location FFB Production (ton/years)

GPS Locations

Latitude (N) Longitude (E)

Krabinoi Estate

98 Moo.6, Nuaklong-Khao Phanom

Road, Huayoong, Nuaklong District, Krabi 81130 Thailand

19,000 49o78’34.57” 90

o30’98.39”

Khaopanom Estate

78 Moo 4, T. Krabi Noi, A.Muang, Krabi 01118

14,000 50o63’02.70” 91

o15’54.22”

Khaokhen Estate

78 Moo 8 T. Khao Phanom, A. Khao Phanom, Krabi 01118

9,500 47o76’18.07” 93

o74’37.65”

Kohnoi Estate

68 Moo 4, T. Kerewong, A. Plaipraya, Krabi 01168

7,000 49o81’06.49” 95

o28’72.40”

Banmak Estate

75/5 Moo 2, T.Bangsawan, A. Prasaeng, Surat Thani 84210

8,500 49o18’63.84” 95

o45’29.02”

Khian Sa Estate

157 Moo 6, T.Bangsawan, A. Prasaeng, Surat Thani 84210

26,000 51o37’62.40” 97

o16’09.52”

Chai Buri Estate

153 Moo13, T.Bansadet, A. Khiansa, Surat Thani 84260

45,000 49o99’42.65” 93

o34’20.59”

Documents

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