RSPO CERTIFICATION ASSESSMENT PUBLIC SUMMARY … · Jl. Jababeka XVII E Blok U No. 27B Kawasan Industri Jababeka I Cikarang Bekasi 17530 – Indonesia Tel : +6221 898 403 18 – 19

PT. TÜV NORD Indonesia

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Univanich Siam mill - TUV Nord (final).docx Page 1 of 58

RSPO CERTIFICATION ASSESSMENT

PUBLIC SUMMARY REPORT

PT. TÜV NORD Indonesia System Certification Management

Has assessed

UNIVANICH PALM OIL PUBLIC COMPANY LIMITED

Siam Mill and its Supply Bases

for Compliance to RSPO Principles and Criteria

for Sustainable Palm Oil Production

Date of assessment: October 8 - 12, 2012

Report Number: P&C-J-124

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 of mill and estates ...................................................................................................................... 4 1.3 Description of Mills and Its Supply Bases (Fruit Sources) ....................................................................... 8

1.3.1 Description of Mill(s) .................................................................................................................... 8 1.3.2 Description of Supply Bases (Fruit Sources) .............................................................................. 8

1.3.3 Time-bound plan………………………………………………………………………………….. 9

1.4 Date of Planting and Cycle ..................................................................................................................... 10 1.4.1 Year of planting for 2 estates during 1985-2011 ...................................................................... 10 1.4.2 Five year replanting program for each estate from 2013-2017. ................................................. 6

1.5 Other Certifications Held (ISO, etc.) ....................................................................................................... 11 1.6 Organizational Information/Contact Person ........................................................................................... 11 1.7 Tonnages to be certified ......................................................................................................................... 12

2 Assessment Process ............................................................................................................................................ 12 2.1 Assessment Methodology (Program, Site Visits) ................................................................................... 12

2.1.1 General Overview ...................................................................................................................... 12 2.2 Date of Next Surveillance Visit ............................................................................................................... 14 2.3 Lead Assessor/Assessment Team ......................................................................................................... 14

2.3.1 Lead Assessor: Chaiyaporn Seekao ......................................................................................... 14 2.3.2 Assessment Team Members ..................................................................................................... 17

2.4 Certification Body .................................................................................................................................... 19 2.5 Outline of How Stakeholder Consultation Was Managed ...................................................................... 19

2.5.1 Summary .................................................................................................................................... 19 2.5.2 List of Contacted Stakeholders ................................................................................................. 20

3 Assessment Findings ........................................................................................................................................... 21 3.1 Summary of the Findings by Criteria ...................................................................................................... 23 3.2 Identified Non Conformances ................................................................................................................. 46

3.2.1 Detail of Non Conformity............................................................................................................ 46 3.2.2 Resume of Audit Results ........................................................................................................... 50

3.3 Issues Raised by Stakeholders .............................................................................................................. 50 4 Certified Organization’s Acknowledgement of Internal Responsibility ............................................................... 52

4.1 Formal Sign-off of Assessment Findings................................................................................................ 52


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List of Figures Figure 1-1 Location of Siam mill and its supply bases .......................................................................................... 5

Figure 1-2 Geographical Map of Chean Vanich Estate ......................................................................................... 6

Figure 1-3 Geographical Map of Siam Palm Estate .............................................................................................. 7

Figure 2 Replanting implementation………………………………………………………………………………………………………….. 28

Figure 3 Fertilizer application by using spraying machine in the estate …………..………………………………… 29

Figure 4 Practices to maintain and restore soil fertility by FFB mulching (a) ……………………..………………. 30

and pruned fronds stacking (b)

Figure 5 The recying of POME nutrients through furrows (a) and pumping station (b) …………......……………....31

Figure 6 Legume cover crop planted in replanting areas……………………………………………………………....32

Figure 7 Weir construction to store rainwater at Chean Vanich estate……………………………………………….33

Figure 8 Barn owl propagation for biological rat control………..……………………………………………………...34

Figure 9 Personal safety equipment for worker who sprays agrochemical…………………………… ……………35

Figure 10 Endangered species listed in IUCN red list and ONEP………………..………………………………….. 38

List of Tables Table 1-1 List of independent grower ................................................................................................................... 9

Table 1-2 Description of supply base (fruit sources) ............................................................................................. 9

Table 2-1 Audit Schedule....................................................................................................................................13

Table 2-2 List of Stakeholder surrounding TOPI mill and its supply bases ...........................................................21

Table 3-1 Summary of Findings by Criteria .........................................................................................................24

Table 3-2 Resume of Audit Results .....................................................................................................................50

Table 3-3 RSPO Supply Chain Standard for Mill .................................................................................................50

Table 3-4 Audit outcome .....................................................................................................................................50


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1 Scope of the Certification Assessment

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

The assessment was conducted for Siam mill and its supply bases owned by Univanich Public Company Limited which is located at 258

Aoluk – Laemsak Rd., Aoluk, Krabi 81110 – Thailand, using Thai National Interpretation (TH-NI) on Indicators and Guidance ver. June 7,

2011.

1.2 Location of Mill and Estates

The supply bases for Siam mill are mainly Siam Palm estate and independent growers. FFB from Chean Vanich estate is only diverted and supplied to Siam mill whenever it has the capacity to spare.

Name of Mill and Estate Location

GPS (UTM)

Point I Point II Point III Point IV

E N E N E N E N

Siam Mill 258 Aoluk-Laemsak Rd, Aoluk District, Krabi 81110 470215 927008 470043 926823 470367 926785 470393 926939

Chean Vanich Estate

159 M.8 Tumbon Plaipraya, Plaipraya District, Krabi 81160 492241 948532 487003 942322 486508 930478 490344 939481

Siam Palm Estate

Siam Palm: 105 M.1 Tumbon Ban Khlang, Aoluk District, Krabi 81110 477692 927279 480156 926716 477196 923876 475735 926009

Nanua Division: 49 M.4 Tumbon Kao Yai, Aoluk District, Krabi 81110 473062 944324 471914 941463 469323 938049 470370 942179

Wanee Division:2 M.3Tumbon Keereewong, Plaipraya District, Krabi 81160 479379 936992 479213 936394 478725 935832 477852 936204

See Figure 1-1 – 1-3 below.


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Figure 1-1 Overall location of mills and estates of Univanich including TOPI mill and its supply bases

Chean Vanich estate

TOPI estate

Siam Palm estate

Nanua Div

Wanee Div

Lamthap estate


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Figure 1-2 Block Map of Chean Vanich Estate


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Figure 1-3 Block Map of Siam Palm Estate


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

1.3.1 Description of Mill

Siam mill and its supply base estates are subsidiary of Univanich. There are also 2 mills (TOPI mill and

Lamthap mill) and other estates under the ownership of Univanich. Each mill and its supply bases will be

reported separately. Table below is the description of Siam mill based on actual production in year 2011.

Name of Mill Annual Output (ton)1 Annual output from own

estate (ton)2 Mill Capacity (ton/hour)

CPO PK CPO PK

Siam Mill 38,971 12,053 506 132 30

Remark: 1 Computed from FFB received from both their own estates and independent small growers.

2 Calculated from FFB supplied by their own estates only (Siam Palm estate and Chean Vanich

estate)

3 FFB generated by Chean Vanich estate and Siam Palm estate are supplied to Siam mill as well

as TOPI mill.

1.3.2 Description of Supply Bases (Fruit Sources)

The supply base consists of FFB from 2 company owned estates (Siam Palm estate and Chean Vanich

estate) and independent outgrowers. Even though the independent outgrowers are the main FFB provider

for Siam mill, but they are not included within the scope of initial certification. Currently, there were no

contracts used to bind the independent outgrowers who are listed in Table 1-1. Based on the production

record of Siam mill during 2011, it revealed that the outgrowers supplied 221,940 mt or 97% of the total

quantity FFB processed at the Siam mill. Meanwhile, only 6,699 mt or 3% of total quantity FFB were

supplied by company owned estates (Siam Palm estate and Chean Vanich estate) as showed in Table 1-2.

From this reason, Univanich has started a discussion with the outgrowers on further RSPO implementation

and certification.


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Table 1-1 List of independent grower

Number of independent grower

Location Total Area (ha)

252 Krabi Province 8,384

115 Phang Nga Province 3,822

4 Phuket Province 124

Total area owned by independent grower 12,330

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

Remark: 1. Above data were based on actual production in year of 2011

2. Supply bases for Siam mill are mainly Siam Palm estate and independent growers. FFB

from Chean Vanich estate is only diverted and supplied to Siam mill whenever it has the

capacity to spare.

1.3.3 Time-bound Plan

The company will use the experience obtained in the main assessment to ensure that independent

grower listed in Table 1-1 will conform to the RSPO principle and criteria for scheme on smallholder in the

next 3 years. Progress of time-bound certification will be verified and reported in subsequent surveillance

visits.

Name of Estate Area (ha) FFB Production

(ton/year) Total Planted

Siam Palm estate 1,403 1,368.2 2,407

Chean Vanich estate 2,459.3 2,459.3 4,292

Total 3,862 3,827.5 6,699

Independent growers from

- Krabi 8,384 8,384 150,927

- Phang Nga 3,822 3,822 68,796

- Phuket 124 124 2,232

Total 12,330 12,330 221,940


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1.4 Date of Planting and Cycle

1.4.1 Year of planting for 2 estates supplied FFB to Siam mill

Year of Planting

Planted area (ha) in each estate Total Planted Area (ha)

Chean Vanich estate Siam Palm estate

1985 558.4 - 558.4

1986 432.8 - 432.8

1987 107.1 - 107.1

1988 193.4 - 193.4

1989 - - 0

1992 - - 0

1993 - - 0

1994 - - 0

1995 - - 0

1996 - - 0

1997 - - 0

1998 - 10.4 10.4

1999 4.3 - 4.3

2000 5.2 254.3 259.5

2001 - - 0

2002 70.3 200.4 270.7

2003 - 134.5 134.5

2004 68.3 105.2 173.5

2005 80.0 74.3 154.3

2006 191.3 - 191.3

2007 178.5 83.8 262.3

2008 224.2 - 224.2

2009 122.4 108.6 231

2010 58.7 99.7 158.4

2011 50.4 170.6 221

2012 114.0 126.4 240.4

TOTAL 2,459.3 1,368.2 3,827.5


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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)

Chean Vanich Estate Siam Palm Estate

2013 238.1 - 238.1

2014 - - -

2015 273.2 - 273.2

2016 231.9 - 231.9

2017 240.0 - 240.0

TOTAL 983.2 0 983.2

1.5 Other Certifications Held (ISO, etc.)

Certification Name Certification Num.

Date of Certification

Valid until

ISO 9001:2008 certified by Bureau Veritas Certification for estates under the scope of oil palm seed production, tissue culture and nurseries

TH 002257 November 3rd, 2004

November 2nd, 2013

1.6 Organizational Information/Contact Person Organizational Information

Principle Contact Person Dr. Palat Tittinutchanon

Position Plantations Director

Business Address 258 Aoluk-Laemsak Road, Aoluk, Krabi 81110 Thailand.

Group Name (If applicable) -

Office Telephone number +66 75-634-634

Mobile Telephone Number +66 81 968-5965

Fax +66 75-681-124

E-mail address [email protected]

Web site www.univanich.com


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1.7 Tonnages to be Certified Tonnages to be Certified

Name of Mill Siam Mill

Location 258 Aoluk-Laemsak Rd, Aoluk District, Krabi 81110

CPO Production (ton) 506 ton

PK Production (ton) 132 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 audit (pre-audit) was conducted back in April 6-7, 2012. During the first stage audit, on

site review of RSPO related documents and records were done for both mill (Siam mill) and estates (Chean

Vanich estate and Siam estate), while the rest of mill and estates will be visited in stage II. Based on

findings and recommendation from the first stage audit, auditor team asked client to prepare correction and

its evidences, and upon confirmation of correction made the auditor issued notification for certification audit

to RSPO Executive Board to be published at RSPO website. The certification assessment of Univanich’s

mill and its three (3) out of four (4) estates, which are Chean Vanich estate, Lamthap estate and TOPI

estate, was carried out from October 8-12, 2012. The assessment comprised four phases:

• A desk audit (document check) of Univanich mill and 4 estates with the help of a customized 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),


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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 December 6th, 2012 was conducted through

reviewing 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

8.10.2012

Chean Vanich estate (team)

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. 2

9.10.2012

TOPI estate (Team 1)


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


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

9.10.2012

Public Consultation at TOPI mill and estate (Team)

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

9.10.2012

TOPI Mill

(Team 2)

3, 3 Actual and budgeted production


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


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6.1 – 6.11 SIA, Communication, Complaint,


Day. 3

10.10.2012

Lamthap Estate &

Lamthap mill (Team)


2.1, 2.2, 2.3, 3

Regulation compliance, land-use right, customary right, actual and budgeted production Actual and budgeted production


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



Day 4

11.10.2012

Siam mill

3, 3

4.1 – 4.8

5.1-5.6

6.1 – 6.11

Actual and budgeted production

SOP, Soil Control, Errosion Control,Water Mgt, IPM, Chemical Mgt

EIA, Waste and Pollution Management, Energy Management

SIA, Communication, Complaint,


Day 5

12.10.2012

Siam Mill Office

Siam Mill Office

All

All

Audit reporting

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.

2.3 Lead Assessor/Assessment Team

2.3.1 Lead Assessor: Chaiyaporn Seekao

Qualification Compliance

Educational Background

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

• 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

Yes (Y)


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social science; University, THAILAND

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

• October 2009 to present: work at TÜV NORD (Thailand) Ltd. and has 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., consultancy company, and had responsible for Conduct the Environmental Impact Assessment (EIA) study which includes HCV, biodiversity social and health impact assessment for many mega-projects which were engaged by recognized companies from both domestically and internationally, The area of my expertise of EIA’s study emphasizes on fishery and agriculture topics, Conduct the public hearing/consultations for obtaining the comments and any feedback from all stakeholders, Give the client with capable 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 with 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

Y


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RSPO Training:

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

RSPO Lead Auditor Course Organized by Stepwise Support Programme during April 12-16, 2010, Johor Bahru, Malaysia HCV and its application in RSPO Organized by WildAsia during August 28-29, 2012 at Krabi, Thailand

Y

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

ISO 9001:2008 Series Auditor/Lead Auditor Training Course (Course No: A17086 Certificated by IRCA) Organized by Robere & Association (Thailand) Ltd. October 26-30, 2009, Bangkok, Thailand

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

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

GLOBALG.A.P CB option 2 training for group certification-V4 Organized by GLOBALG.A.P secretariat during June 10, 2011, Beijing, China

Y

Experience related to RSPO:

A supervised period of training in practical assessment against the RSPO criteria or similar sustainability standards, with a minimum of 15 days assessment experience at least 3 assessments at different organisations

Having more than 15 days of audit in more than palm oil companies (March 2010 – November 2012) 1. RSPO P&C auditor for pre-audit of Univanich’s mills and estates, Krabi, Thailand that

organized by GIZ during March 15-17, 2010 (3 days) 2. RSPO P&C auditor for Main Audit of PT. PERKEBUNAN NUSANTARA IV

(PERSERO), Medan, Indonesia during October 25-29, 2010 (5 days) 3. RSPO supply chain auditor for main audit of Lam Soon (Thailand) for 2 refinery in Trang

and Samutprakarn, Thailand during March 13-17, 2012 (3 days) 4. RSPO supply chain auditor for stage 1 audit of Energy Absolute, Bangkok, Thailand on

March 29, 2012 (1 day) 5. RSPO P&C auditor for stage 1 audit of Univanich’s mills and estate, Krabi, Thailand

during April 6-7, 2012 (2 days) 6. RSPO supply chain auditor for main audit of Lam Soon (Thailand) for 2 refinery in Trang

and Samutprakarn, Thailand during April 30-May 1-6, 2012 (5 days) 7. RSPO supply chain lead auditor for main audit of Energy Absolute, Bangkok, Thailand

during May 14-16, 2012 (3 days) 8. RSPO P&C auditor for Main Audit of United Palm Oil Industry Public Company Limited

(UPOIC), Krabi, Thailand during June 26-29, 2012. (5 days) 9. RSPO supply chain lead auditor for state 1 audit of T S Oil Industry Co.,Ltd, Bangkok,

Thailand on October 22, 2012 (1 day) 10. RSPO supply chain lead auditor for main audit of T S Oil Industry Co.,Ltd, Bangkok,

Thailand during November 9-10, 2012 (2 days)

Audit experience for other similar sustainability standards 1. GLOBALG.A.P lead auditor for Sureerath farm, Thailand during September 11-12, 2010 2. GLOBALG.A.P lead auditor for TSM hatchery, Phang-nga Thailand during December

21-22, 2010 3. GLOBALG.A.P lead auditor for TSM 11 farm, Ranong Thailand during March 3-5, 2011 4. GLOBALG.A.P lead auditor for Charoen Pokphand Foods Public Company Limited,

Songkhla, Thailand during January 30-31, 2012 5. GLOBALG.A.P lead auditor for TSM hatchery, Phang-nga, Thailand during March 10-

11, 2012 6. GLOBALG.A.P lead auditor for Swift Co.,Ltd, Nakornpathom, Thailand on May 8, 2012 7. GLOBALG.A.P lead auditor for Charoen Pokphand Retailing (CPRAM), Bangkok,

Thailand during Ma 9-10, 2012 8. GLOBALG.A.P lead auditor for TSM 11 farm, Ranong Thailand during May 22-23, 2012 9. GLOBALG.A.P lead auditor for Union Frozen Public Company Limited on May 25, 2012 10. GLOBALG.A.P lead auditor for Swift Co.,Ltd, Nakornpathom, Thailand on July 25-28,

2012

Y


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2.3.2 Assessment Team Members 1. Pongrat Khamnungkit

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.

Training background

- ISO/CD 26000 organized by TISI, May 21-22, 2009, Bangkok. - SA8000®:2008 Standard Revision Training Course organized by Social Accountability International (SAI),

March 13, 2009, Bangkok. - Hazard Control/Ergohomic included Psychological Health Hazard & Control by Siam Safety, 5.01.09,

Bangkok. - Risk Assessment training by Siam Safety, 31.10.08, Bangkok. - GMP and HACCP in food processing plant organized by Thai National Food Institute, April 24-28, 2006,

Bangkok. - Training course on “The Thai Labor Standard Auditor TLS 8001:2003” by Department of Labor Welfare

and Protection, September 6-7, 2004, Bangkok. - Training course on “Application to new regulation of food industry” by Thai National Food Institute, August

9, 2004. - Fire Drill and Fire Fighting In-house Training against Thai Labor Law, July 12, 2004. - The Occupational Health and Safety Management System Auditor Conversion Training Course (Course

no.IRCA:A16834), May 15-17, 2004 - Training course on “Food Risk Assessment in Food Industry” by Thai National Food Institute, March 18-

19, 2004. - International training course on “Principles of Pollution Prevention and Cleaner Production” developed by

USEPA, organized by the Environment Engineering Association of Thailand, February 27-28, 2003. - “ISO9000:2000 Transition Auditor Training Course” by Nigel Bauer&Associates under IRCA Ceritified,

November 18-19, 2000, Bangkok. - Training course on “The Environment Systems Auditor ISO 14000” by Quality Assurance Services Pty.

Ltd. (Australia), August 23-27 1999, Pattaya. - Training course on “Integrated Solid Wastes Management”, organized by the Environment Engineering

Association of Thailand, March 25-26 1999, Bangkok. - “Registered Lead Assessor Course ISO 9000” by JP Consultant Limited, UK, May 6-10 1997, Bangkok.

Experience related to RSPO

Having experiences in assessment RSPO to date (December 2012) - RSPO P&C for Main Audit of United Palm Oil Industry Public Company Limited (UPOIC), Krabi,

Thailand during June 26-29, 2012. (5 days)

2. Technical Expert : Associate Professor Dr. Benchamaporn Pimpa

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.


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• 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).

•

RSPO REQUIREMENT ASSESSOR QUALIFICATIONS COMPLIANCE

Fluent in main local languages and English.

Chaiyaporn Seekao (CS)

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 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)

Y

CS Having experience in RSPO P&C Certification audit as well as RSPO Supply chain audit

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

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

Y


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social or ethical accountability codes).

(TLS) 8001

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

PK 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

offer not just a high value added 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 October 8-12, 2012 by

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

available in the RSPO’s website so that stakeholder can be aware before initiating assessment. However,

Siam mill and its two (2) estates which are corporate mill and estates of Univanich have held regular


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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

with the current situation and issues raised by the stakeholders. The stakeholders including local

community leaders and representative of governmental agencies concerned were then invited to discuss

critical issues in community development, to make any comments on several issues related to them with

and without consideration of RSPO requirements as well as brainstorming for community development

together. Some of the items in the agenda for the public consultation meeting were as follows:

• Information about RSPO to the public and stakeholders

• Univanich’s policy and implementation on environmental protection and biodiversity conservation

• The impact of both mill and estate on the Environment and Conservation as well as its mitigation

plans

• 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 activities from the

mill and estate, as well as to determine how to improve the solutions.

Agenda above also included discussions on how to maintain the main approach road to the estates as dust

caused by FFB transportation is an issue of main concern to the local communities, mechanism to raise

complaints and grievances, maintain environmental conditions, corporate social responsibility including

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

stakeholders who live around the estates. From the latest public consultation meeting held at Siam mill on

March 15th, 2012, there were 21 community leaders from around the mill and estate attended this public

consultation meeting. The discussion with stakeholders conducted by Univanich was well organized and

freedom was given to the stakeholders to voice their views and perspectives, either negative or positive to

the estates and mill. Results of this public consultation meeting unveiled that there were no issues of major

concern associated with the present activities of the mill and estates.

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 estate. The in-availability of either indigenous peoples,

worker organization, local NGO or national NGO have been confirmed again during the public consultation

meeting which was held at Siam mill office on March 15th, 2012. Lists of participant are as shown in Table

2-2


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Table 2-2 List of Stakeholders around Siam mill and its supply bases

No. Statutory Bodies / local communities Contact Person

1 Aoluk Distric Chief Mr. Prasit Phoochatwanichkul

2 Aoluk Tai subdistrict Chief Mr. Suriya Chumjai

3 Head of Talad Tai Community, Aoluk Mr. Sukhum Keethong

4 Head of Tharn Bok Community, Aoluk Mr. Peerapol Keethong

5 Director of Aoluk School Mr. Yin Prombutra

6 Tanbok Community Leader Mr. Peerapol Kheethong

7 Talad Tai Community Leader Mr. Wichein Kheethong

8 Ban-Klang subdistrict Chief Mr. Suchart Bannop

9 Aoluk Nuey Subdistrict Chief Mr. Khumron Seangdum

10 Moo 4 Tambon Banklang Village Leader Mr. Khamalae Kamaetep

11 Khaoyai Subdistrict Adminstration Leader Mr. Suthep Khonkham

12 Khaoyai Subdistrict Adminstration Member Mr. Kueykool Pattanasing

13 Khaoyai Subdistrict Adminstration Member Mr. Suchart Tippayangkul

14 Khaoyai Subdistrict Community Leader Mr. Montee Kaosa-art

15 Moo. 4 Tabmon Nanuey Village Leader Mr. Supakij Paklao

16 Moo. 4 Tabmon Nanuey Village Assistant Leader Mr. Boonmee Paklao

17 Moo. 4 Tabmon Nanuey Village Assistant Leader Mr. Somchoke Pankul

18 Moo. 4 Tambon Nanuay Village Leader Mr. Taweesak Boonyathein

19 Nanuay Subdistrict Adminstration Office Member Mr. Narongwut Wanich

20 Moo. 5 Tambon Nanuay Village Leader Mr. Suwij Promrattana

21 Moo. 5 Tambon Nanuay Village Assistant Leader Mr. Sompong Sahakij

22 Small grower Mrs. Ladda Eiamsiri

23 Small grower Mr. Sithisak Petkom

24 Small grower Mr. Jaroon Tunpun

25 Small grower Mr. Chirawut Petchluan

26 Small grower Mr. Sophon Khammee


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27 Small grower Mr. Raewat Thamsuy

28 Small grower Mr. Aphicah Thongrak

29 Small grower Mrs. Jirawan Choomduang

30 Small grower Mrs. Kietiya Patphong

31 Small grower Mrs. Amporn Thitiputtakul

32 Small grower Mr. Chokchai Khonsai

33 Small grower Mrs. Kimnai Thanomnuan

34 Small grower Mr. Somporn Mukkaew

35 Small grower Mr. Somprasong Mukkaew

36 Small grower Mrs. Prakong Sakulsuan

37 Supplier Mr. Somporn Prombut

38 Outsource Mr. Suthat Kaewsawang

39 Outsource Mr. Prasert Sittichean

40 Outsource Mr. Ardoon Kaosa-art

41 Outsource Mr. Boonchauy Boonchan

42 Krabi Integrated Community Development Center Mr. Wasan Monkhung

43 Kraibi Provincial Industry Work Office Mrs. Narumol Sawatdee

44 Praipaya Public Health Office Mr. Amnuay Huayluak

45 Villager Mrs. Narumon Sawasdee

46 Villager Mr. Boonchoo Eamkarn

47 Villager Mr. Nawanachapol Sornkaew

48 Villager Mr. Wirat Daengbanjong

49 Villager Mr. Saroj Suanraksa

50 Villager Mr. Sakpan Khammee

51 Villager Mr. Weerawat Srisattha

52 Villager Mr. Kosin Pawittachart

53 Villager Mr. Nattawut Payungphan

54 Villager Mr. Pramote Damkham


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55 Villager Mr. Pradit Muenthip

56 Villager Mr. Thanomsak Chaitasna

57 Villager Mr. Sakorn Tiddaeng

58 Villager Mr. Somnuek Kessarin

59 Villager Mr. Suphit OngMueng

60 Villager Mr. Soonthorn Saengwan

61 GIZ Mr. Thitinai Pongpiriyakit

62 GIZ Mr. Anongnit Jaikling

63 Siam Palm Estate Mr. Praiwan Todum

64 Siam Palm Estate Mr. Sunej Meechai

65 Siam Palm Estate Mr. Sontorn Tadej

66 Seed Selling Department Mr. Sawaj Boonnakkaew

67 Siam mill/Production Mr. Sayan Kongkaew

68 Siam mill/Production Mr. Prasong Wongmuang

69 Safety Health and Environmental Office Mr. Kriegnsak Booranaprapan

70 Siam mill/electricity head Mr. Saroj Sauangraksa

71 Siam mill/maintenance Mr. Wimol Aenchuan

72 Siam mill/engineer Mr. Jakkapan Chana

73 Siam mill/biogas chief Ms. Laongsri Hemanon

74 Mill employee Mrs. Somjai Keisarin

75 Mill employee Mr. Sakorn Tiddang

76 Mill employee Mr. Artid Choonnapun

3 Assessment Findings

3.1 Summary of the Findings by Criteria

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

certification assessment. The information was comprehensively asked from Siam mill and Chean Vanich

estate which is their supply base. The results for each indicator from the different operational areas were


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aggregated to assess the overall conformances of the company’s operations to each criterion. The

summary of the assessment can be seen in Table 3-1, where “Findings/Comments” column reflects the

findings in accordance with each criteria and indicator or evidences that were found (the full and complete

checklist contains some confidential information and is an extensive document used for peer review and by

the certification decision panel and certifier), and when non conformity was found, a summary of the non-

conformity will be included. A detailed description of the Non-Conformities is given in Section 3.2.

Nonconformities for Siam mill and its supply base were raised for one (1) Major and one (1) 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.

Siam mill and estates of Univanich 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 to 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

Transparency procedure P-AM-01 revision 0 dated 1.10.2011 which contains information on environmental, social and legal issues have been established by the central office of Univanich. Siam mill has announced transparency procedure to the stakeholders during the public consultation meeting done on March 15th, 2012 before the date of certification assessment in order to inform the right of stakeholders to ask for the relevant information showing the transparency of company’s operations. Siam mill and estate maintain a system of request for information and responses. Not only stakeholder but also workers at mill and estates have the right to request any recorded information.

The correspondences in the stakeholder request file were reviewed and it was found that Siam mill and estate have yet to receive any requests for information from the stakeholders (1.1.1). Only request for a salary or wage increase was raised by workers from Chean Vanich estate on May 10th, 2012 has been recorded in the request form F-AM-01 dated 1-10-2011. Chean Vanich estate has replied the request on salary increase on May 23rd, 2012 (1.1.2). A list of information/document, namely : 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 water supply analysis are made readily available for prompt response to stakeholders’ request for information at anytime. The record of request/response is designated to be kept for 5 years.

Yes


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Criterion 1.2 (C.1.2) 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

The records held at Siam mill and Chean Vanich estate showed that copies of the management documents 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 and test report on water supply analysis required by RSPO were available and ready for transparency purpose on request at each location visited (1.2.1). Details of document are listed below.

• Each location visited held a copy of the land deed. • The mill and estates have a health and safety plan that consists of policy signed by top

management, annual training plan, quarterly meeting to identify and address health and safety issues.

• The mill and estate have prepared the environmental impact assessment report which identified significant impacts using ISO14001 approach. Mitigation plans to reduce the significant impacts are also addressed. Social impact assessment done by consultation with stakeholders and action plans are prepared to address issues raised by stakeholders.

• Pollution prevention plans have been developed by using report of environmental monitoring done by Environment Research and Technology Co.,Ltd as the baseline information.

• The mill and estate maintain a system of receiving complaints. Records of written complaints and issues raised by stakeholders will also be maintained even though there are no complaints given by stakeholders.

• Procedure and processes of negotiation associated with land acquisition were available. The final process of negotiation associated with land acquisition will be judged at the court for final solution.

• Central office of Univanich has prepared a consolidated improvement plan for the mill and estates.

Yes

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

Siam mill and estates maintain a copy of all licenses on file. List of relevant laws and regulations that need to be obeyed and followed by mills and estates was developed on April 1st, 2012 in order to ensure that all operations are in compliance with laws and regulations. Sample of documents and records of Siam mill and estates were examined for assessment of legal compliance. Inspection of a sample licenses showed that all licenses were current at the time of the assessment as for instance below (2.1.1).

• Univanich holds land deeds and contracts for all land used for oil palm cultivation. Land deeds and contract were done according to the Land Development Act B.E. 2551 (2008), Land Renting for Agriculture Act B.E. 2524 (1981), Agricultural Land Reform Act (No. 2) B.E. 2532 (1989) and Ministry of Environmental and Natural Resources.

• Estates used only chemicals that have been assessed and registered with Department of Agriculture. For instance, paraquat with registration number of 694/2547 (2004) and glyphosate with registration number of 1528/2550 (2007) have been reviewed during the assessment.

• Waste disposal done by authorized company namely Mahachai Aeksirioil which holds the license number 3-106-5/46 issued by Department of Industry Work

• Boiler inspector license issued by Department of Industry Work was inspected. • Not only boiler inspector but also engineers and electricians have the necessary

qualification approved by Department of Industry Work • Boiler operating license issued by the Department of Industry Work.

Yes


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• Results of emission monitoring on September 2012 at Siam Mill carried out by Environmental Research and Technology Co.,Ltd, which holds the license number Wor.-099 for environmental monitoring and analysis, revealed that the levels of Total Suspended Particulate (TSP), sulfur dioxide, nitrogen dioxide and carbon monoxide emitted by the mill did not exceed the notification of the Ministry of Industry B.E. 2549 (1996) emission standards. This report was also submitted to Krabi Provincial Industry Office as required by Act no. 30 of the Industry laws B.E. 2535 (1992).

• Siam mill treats effluent in anaerobic ponds and applies the treated effluent to the oil palm fields. The treated effluent is tested monthly at an independent laboratory.

• Inspection of payment records at Siam mill and estates for January-September 2012 indicated that workers were paid in accordance with the notification of Ministry of Labour’s minimum wage for Krabi province at 257Baht/day on November 2nd, 2011. The records of payment for sub-contracted workers were also reviewed and found that sub-contracted workers were paid in accordance with the respective awarded rates.

Central office at Univanich has established procedure for the provision of the laws and regulations revision 00 dated 1.4.2012 and work instruction SD/SMR-006 dated 17.02.2012 for reviewing any updates related to laws and regulations in every 3 months. HR manager will be responsible for the update on laws and regulations (2.1.2). To obtain the relevant update laws and regulations, HR manager will coordinate with provincial governmental officer from relevant agencies. Then, the evaluation to demonstrate which law and regulation are related to the mill and estate operation will be done by HR manager at the central office of Univanich and will be approved by Dr. Palat Tittinutchanon, the plantations director. The evaluation of relevant laws and regulations is done in accordance with the mechanism established by Univanich on 1.4.2012. If there are any updates on laws and regulations related to the mill and estate based on the result of evaluation, its update of the laws and regulations will be sent to each mill and estate and they will be communicated again during the estate manager meeting at central office of Siam mill (2.1.3 and 2.1.4). The available list of laws and regulations for compliance which is current were reviewed since the beginning of year 2012. The latest relevant laws released in year 2012 were covered under 2 topics as follows:

• Announcement letter on labour and safety which was released on 2 May 2012. • Announcement letter on environmental laws (only minor amendment not major change)

which was released on 2 May 2012 Criterion 2.2 (C.2.2) The right to use the land can be demonstrated and is not legitimately contested by local communities with demonstrable rights

All areas of Siam mill and estates are bound by the various licenses (i.e. Nor Sor 3, Nor Sor 2, Nor Sor 4, Nor Sor 3 Kor and Nor Sor 4 Jor which were issued by the Land Department and Agricultural Land Reform Office of Ministry of Agriculture and Cooperatives) and land permits issued by the Department of Royal Forestry and Cooperative Promotion Department (2.2.1). Land permits are issued for Chean Vanich estate. However, the land permits issued to Chean Vanich estate is going to expire on 22 April 2013. Univanich as the land permit holder is trying its best to cooperate with the Department of Royal Forestry to extend the validity of the land permit. The current status of extension of land permit validity is that the Department of Royal Forestry has received the official letter no. Kor Sor 0013.3/12333 dated 21 September 2012 from the Krabi Governor requesting the cooperation of the Department of Royal Forestry to speed up the extension application process in order to prevent people immigrated from other provinces from occupying this area. As Univanich has the confidence to extend the validity of land permit with the Department of Royal Forestry; thus, the replanting program for Chean Vanich estate has been programmed.

The boundaries of estates were inspected at several places and at every instance found to be demarcated by pillars. Even though all square meter of Siam mill and its supply base are bound with the land licenses and permits, Siam mill and estates have established the mechanism on how to

Yes


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FINDINGS/COMMENTS COMPLIANCE resolve any disputes/conflicts (if any) which is already presented during the public consultation meeting. Any outstanding disputes over the land rights will be settled through court process for the final resolution if evidence of ownership could not be accepted by parties concerned (2.2.2)

The results of public consultation meeting held on March 15th, 2012 at Siam mill revealed that, thus far, there were no instances of land right dispute or conflict. All stakeholders especially community leaders and officers from local government agencies confirmed that Univanich has the rights over the land and there were no occurrence of any land conflicts since Univanich started the palm oil business in these areas almost half a decade ago. Therefore, the necessity to map the boundary of disputed area in a participatory way does not arise (2.2.3).

Criterion 2.3 (C.2.3) 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.

Ascertainment of the land rights of other users was done through the inspection of minutes of public consultation meeting. It was confirmed that there is no customary rights of other users because all square meters of land of Siam mill and supply base estates are bound by the land licenses and land permits from the relevant government authorities such as Land Department, Agricultural Land Reform Office of Ministry of Agriculture and Cooperatives, Department of Royal Forestry and Cooperative Promotion Department (2.3.1 and 2.3.2).

Yes

Criterion 3.1 (C.3.1) There is an implemented management plan that aims to achieve long term economic and financial viability

The Siam Mill based Central office of Univanich will be responsible for making the decision and approval of annual budget for 2011-2014 submitted by Siam mill and estates (Chean Vanich estate and Siam Palm estate). The annual budget plan for Siam mill includes production forecast of amount of CPO based on amount of FFB from different sources, operation costs i.e. use of electricity from both purchasing from EGAT and their own biogas as well as amount of budget for purchase of FFB from independent small growers, and production cost. For the annual plan of estate especially at Chean Vanich estate includes forecast of FFB production, budget for harvesting and collection of FFB, budget for transportation of FFB from estate to mill, budget for plantation maintenance (i.e. fertilizer application, weeding, pest and disease control, EFB application, and POME application), and expected volume of amount of rainfall (3.1.1).

The estates have prepared annual replanting programs that are at various stages of implementation for the next 5 years. For instance, Chean Vanich estate replanting program is scheduled to commence in 2013 and is documented in the annual replanting program. The program is subjected to annual review by Dr Palat Tittinutchanon at the end of every year. Replanting program for Chean Vanich estate was last reviewed in September 2011 (3.1.2). There are 2 methods of replanting. The first method is clean clear planting as shown in Figure 2. Another method is semi under-planting where only alternate rows of mature palms are felled and chipped.

Yes


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Figure 2 Replanting implementation

Source: Siam Palm estates, 2009

Criterion 4.1 (C.4.1) Operating Procedures are appropriately documented and consistently implemented and monitored

Siam Mill and estates have established relevant procedures and work instructions based on document hierarchy structure for documents in compliance with ISO 9001 and include all tasks from replanting through to upkeep and harvesting. Here below are some procedures and work instructions used in the mill and estates (4.1.1 and 4.1.2).

• Agrochemical storage operation “Document no. 4.9” • Maintenance of engines and vehicles for agriculture “Document no. 4.7” • Fertilizer application and soil improvement “Document no. 4.3” • Harvesting and transporting of FFB from estate to mill “Document no. 4.1” • Integrated Pest Management program “Document no. 4.6” • Irrigation in the plantation “Document no. 4.11” • Oil palm nursery management “Document no. 4.2” • Pruning technique and implementation “Document no. 4.4” • Replanting program and methods “Document no. 4.12” • Road maintenance “Document no. 4.8” • Training “Document no. 4.10” • Weed protection and elimination “Document 4.5” • Purchasing FFB from small growers • Determination of FFB specification • Receiving and recording certified and non certified RSPO FFB • Dispatch of products i.e. CPO • Weighting the truck before and after loading • Boiler operation and inspection • Biogas operation and inspection • Monitoring environmental qualities • Waste disposal • Use of PPE

In the assessment, not only the inspection of availability of procedures and work instructions but also verification of the implementation according to their documented procedures and work instruction was done. Based on the results of verification on the records, it was found that the implementations

Yes


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FINDINGS/COMMENTS COMPLIANCE were done in compliance with the documented procedures and work instructions. For example, the mill operators recorded operating parameters hourly of boiler onto shift log sheets which are then reviewed by the supervisor. Another example of mill operation is related to training of mill operators. Training subjects to be given for all mill operators in year 2012 such as health and safety training, use of PPE, for example were done in according to the training plan for year 2012. Records of operation activities based on the relevant procedures and work instructions are properly kept and are traceable back for 2 years (4.1.3). For example of estate operation, agrochemical and fertilizer application and their dosages were done in compliance with the documented procedures. The records showing the dosage of either agrochemicals or fertilizer were also reviewed by estate’s supervisor. A monthly report is produced by each estate for management meeting that will be held at the central office in Siam Mill to review the monthly implementation and any changes that may affect the implementation of each estate and also documented procedures and work instructions.

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

Regarding fertilizer application, different fertilizers are applied by different estates depending on the results of soil and foliar analysis and the expected benefits. There were 3 formulae used, comprising 0-0-27, 0-46-0 and 16-16-8 that were seen during site visits and recorded in the fertilizer application log sheets. The estate recorded fertilizer application for each block and report the progress on implementation of the fertilizer application to the central office at Siam mill for review. Fertilizer application is done daily but cover 2 times a year/block. The fertilizers were applied with 2 application methods, that is, manual broadcasting by workers or by mechanical spreader mounted on tractor as shown in Figure 3. A record of fertilizer stock movement is also maintained and can be cross checked with amount of fertilizer used in each block (4.2.1).

Figure 3 Fertilizer application by using mechanical spreader mounted on tractor

The estates have monitored changes in nutrient status starting from the tenth year after planting and five-seven yearly intervals from blocks. Foliar samples of each estate were taken and analyzed by Applied Agricultural Research SDN. BHD at Malaysia. Latest foliar analysis for Chean Vanich estate, was done on 13 April 2012. The results of latest foliar analysis done for Chean Vanich estate were : ash = 9.08, N = 2.86, P = 0.166, K = 0.93, Mg = 0.25 and B (ppm) = 12.7 (4.2.2). The results of foliar analysis of each estate are monitored by the Plantations Director, Dr. Palat Tittinutchanon. He will recommend the appropriate fertilizers for application based on the results of foliar sample analysis.

Yes


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The estates have EFB and POME application programs in place as described in the Fertilizer application and soil improvement “Document no. 4.3”. Not only EFB and POME were applied for soil improvement, decanter cake was also used for the same purpose. Not only that EFB, POME and decanter cake can help to improve soil fertility, their field applications could also help to remove wastes from the mill. Mulching the ground of alternate palm rows with pruned fronds is also one of the methods to improve soil nutrient content and prevent surface soil erosion as shown in Figure 4. Estates have also applied bio-compost produced from EFB and mill effluent (POME). For EFB, approximately 60 ton/ha is applied to fields with poor fertility and low FFB yield such as sandy or lateritic soils, apart form replacing costly potassium fertilizers. Inspection of Chean Vanich estate where replanting is being carried out confirmed that the felled palms are chipped to enable the release of nutrients from the old palm trunks to the replanted immature palms. Meanwhile, palm oil mill effluent (POME) and the residual wastes from the biogas digester of Siam Mill are used to irrigate the palms at Siam Palm estate. Approximately 40-50% of treated POME is applied in furrows connecting between last waste water treatment pond and the estate (Figure 5). The record of POME generated by Siam mill during January – September 2012 was approximately 99,442 cubic meters. Of which, about 36,003 cubic meters were field applied to Siam estate. Monitoring BOD level from the last wastewater treatment pond before pumping for irrigation is done monthly at the mill. Latest result of BOD level was 16 mg/L recorded in September 2012. Nevertheless, the level of BOD in POME is not important in Thailand’s context as it is not required by the environmental authority if POME is recycled as a form of nutrient inputs in oil palm plantations. POME application could not be implemented for Chean Vanich estate as it is constrained by its considerable distance from the Siam Mill. (4.2.3).

(a)

(b)

Figure 4 Practices to maintain and restore soil fertility by EFB mulching (a) and pruned frond stacking (b)


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(a)

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Figure 5 The recycling of POME nutrients through furrows (a) and pumping station (b)

Criterion 4.3 (C.4.3) Practices to minimize and control erosion and degradation of soils

Soil conservation practices to minimize and control erosion are described in procedure no. P-SI01/2000. Estates have committed to control and minimize soil degradation by using topography map with contour lines from Royal Thai Survey Department to delineate areas prone to erosion. In Chean Vanich estate, it was observed that soil conservation practices were implemented in fragile soil areas with slope gradient of 10-15%. For example, terraces were constructed with a back inclined slope with stop bunds spaced at certain regular intervals for water conservation. Pruned palm fronds are stacked along the contour on sloping areas to prevent erosion and degradation of soils. During the assessment, it was found that terraces and silt pits still remained in good condition even though they have been constructed along the contours for years. Legume cover crops (LCC) were also planted in replanting areas at Chean Vanich estate as shown in Figure 6 in order to establish groundcover, prevent soil erosion, increase soil fertility and control of other weeds. The estates have maps showing areas where fragile soils are considered to exist based on slopes with gradient ranging between 10-15%. The map showing areas with terraces is also available and it corresponds to the map of fragile soil (4.3.1 and 4.3.2).

The estates have an annual budget and annual plan for road maintenance. Locations of road where maintenance is needed were well defined in the road maintenance program. Rain is a main factor of consideration for developing the annual plan of road maintenance program. Based on this consideration, work on road maintenance is usually scheduled during the low rainfall seasons of summer and winter. The road maintenance program entails soil erosion prevention as well as road surface improvement operations such as grading, compacting and cambering. Apart from that, drainage pipe maintenance is included in this program. The implementation of either road or drainage pipe is carried out by the workers of the estates as rollers and excavators are available on site. Inspection at Chean Vanich estate indicated that the total road distance to be maintained for year 2012 was approximately 20% of total length of roads in the estate. The total distance of roads that need to be repaired in Siam Palm estate is about the same for Chean Vanich estate. At the time of the visit, the progress of road maintenance achieved for Chean Vanich was about 15% of what was programed. Similar progress was also realized for Siam Palm estate. Nevertheless, field inspections indicated that roads in Chean Vanich estate were in a good state of repair and all areas were easily accessible. The main practice of road maintenance is to compress and roll the soil surface with road roller vehicle until it is smooth and strengthened (4.3.3).

Yes


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By and large, there are no peat soils in any estates of Univanich (4.3.4)

Figure 6 Legume cover crop planted in replanting areas

Criterion 4.4 (C.4.4) Practices to maintain the quality and availability of surface and ground water

Estates have a policy which states that natural surface water will not be used for irrigation of oil palm cultivation purpose. Groundwater is however allowed to be used for workers who live in the estate for consumption purpose only. Surface water management plan is described in the procedure P-PT-13 Revision 00 dated November 5th, 2011. The water management plan includes constructing the weir to store the rainwater for irrigation in the estate, avoiding contamination of ground surface from chemicals and POME, recycling nutrients in POME and supporting zero discharge policy of any effluents from either mill or estate into the environment. Field inspection of water management implementation was noted to be in accordance with the plan described in the procedure P-PT-13. Huge weir was constructed in all estates to dam up rainwater (Figure 7). Water stored in this dam will be pumped for furrow irrigation in the estate mainly during summer and winter seasons. Buffer zones of at least 15 meters wide were marked on both sides of the canal in the estate as areas to be free of agrochemical usage and it was observed to be well implemented. Information signage on restricted use of chemicals at the buffer zone areas were installed for public awareness and to specially inform and educate the chemical spraying workers. POME from the last wastewater treatment pond is applied in Siam Palm estate through furrows. Periodical inspections of any discharge and leakage of POME applied in the estates have been done to support the zero discharge policy (4.4.1 and 4.4.3).

Yes


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Figure 7 Weir constructed to dam up rainwater at Chean Vanich estate

Siam mill has monitored the effluent water quality discharged from the mill at the inflow (before treatment) and outflow (after treatment at wastewater treatment ponds) points monthly. The effluent samples are analyzed for their BOD as well as COD, pH, suspended solid, oil and grease (O&G). The analysis of effluent is done by Saint Environment Co.,Ltd, external laboratory which holds license no. Wor-052. Latest result of effluent analysis in September 2012 could be divided into 2 parts according to inflow and outflow. The inflow sample taken from the fat pit gave a BOD reading of 38,063 mg/L. Effluent from outflow point sampled at the last wastewater treatment pond (pond M9) before channeled off for irrigation gave a BOD reading of 16 mg/L. To support the zero discharge policy, effluent will be harnessed for biogas generation and for irrigating palms in the estate. Inspection of the effluent treatment ponds of Siam mill found that the pond embankments were well maintained and there were adequate freeboard to prevent overflow (4.4.2).

Siam Mill measures water usage for processing per ton of FFB monthly. Monthly records of water usage per ton of FFB in 2010, 2011 and 2012 are available. Latest monthly records of water volume (cubic meter) pumped from river for February – September 2012 were 14,519, 23,967, 21,087, 21,485, 16,712, 18,147, 28,245 and 27,459. When translated into water usage for processing per ton of FFB (cubic meter/ton of FFB), they were : 1.46, 1.23, 1.07, 1.50, 1.19, 1.29, 1.27 and 1.17 respectively. Thus far, Thailand has no regulations to govern the use of water for estates, either from water bodies or groundwater. However, based on the public consultation meeting at Siam mill revealed that there was no any issue of water usage by neighboring communities or farmers who live downstream (4.4.4).

Criterion 4.5 (C.4.5) Pests, diseases, weeds and invasively-introduced species are effectively managed using appropriate Integrated Pest Management (IPM) Techniques

Estate has formulated an Integrated Pest Management (IPM program as addressed in the document procedure no. 4.11) to control the major pest, namely the rat. The estates have installed barn owl nest boxes (Figure 8). Furthermore, it includes the establishment of beneficial host plants such as Cassia cobanensis and Euphorbia heterophylla along the roadsides. Estates especially Chean Vanich estate is in the process of propagating and multiplying these two predator host plants in the nursery so that they will be ready for planting in coming rainy season around April and May of 2013. To prevent the spread and outbreak of leaf eating insects, sanitation was practiced by removing and disposing off damaged fronds which were heavily attacked by bagworms or caterpillars during the initial stage of attack. The use of chemical to prevent the outbreak is not recommended because it

Yes


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FINDINGS/COMMENTS COMPLIANCE may adversely affect the existence of beneficial insects (4.5.1).

Monitoring programs have been implemented to detect and identify the presence of pest types, pest numbers and possible outbreaks. Training has been given to workers on how to monitor leaf-eating pests and rat. If rat is found in the estate, the workers need to eliminate or catch them immediately. Rat baits are used when necessary. 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. Number of barn owl and boxes are monitored monthly. The result of monitoring number of barn owl at Chean Vanich estate found that number of barn owl has been increasing since releasing only 2 male and female adult barn owls in the last 2 years. Chean Vanich estate has so far put up 80 nest boxes to increase the owl population. Map of barn owl boxes was also available showing the location of 80 nest boxes. Latest monthly monitoring of barn owl census was carried on August 2012 and found about half the nest boxes were occupied. To control the weed, legume cover crop is planted in the replanting area. Application of Bacillus thuringiensis (BT) was used to control outbreaks of nettle caterpillars such as Darna fuva, Darna sordid and Darna diducta (4.5.2).

Chemical treatment is carried out based on the estate manager’s recommendation. The monitoring of pesticide usage was done properly. The records of either pesticide or herbicide used were found to be in consistence with the figures shown in the stock cards of pesticide inventory. Main types of herbicide used in the estates were glyphosate and paraquat. The use of either glyphosate or paraquat was done according to the instruction given in the label by the supplier. Glyphosate and paraquat used in the estate are already registered with the Department of Agriculture. In order to know the toxicity unit, the total active ingredients of glyphosate at 48% and paraquat at 27.6% applied per hectare per year have been calculated. The result of active ingredient toxicity unit (liter a.i. per ha.) was computed for a 9-month period for Chean Vanich estate (2,459.3ha) from January to September 2012. For that period, the total volume of paraquat used was about 1,430 liters. Thus, the resulting toxicity unit for paraquat was 0.16 liter a.i. per ha. Meanwhile, with total volume of 2,660 liters of glyphosate used for the same period, the result of liter a.i. per ha for glyphosate was 0.52 (4.5.3).

Figure 8 Barn owl propagation for biological rat control Criterion 4.6 (C.4.6) Agrochemicals are used in a way that does not endanger health or the environment. There is no prophylactic use of pesticides, except in specific situations identified in national Best Practice guidelines. Where


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FINDINGS/COMMENTS COMPLIANCE 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.

The selection of chemical for weed control and the treatment is based on the inspection of field conditions before spraying. It is the responsibility of estate manager to make a decision whether spraying with chemical is necessary. However, the justification of purchasing all chemical pesticide use in all estates for 2 times a year has been decided by Dr. Palat Tittinutchanon, the Plantations Director. The reasons for using paraquat and glyphosate were to reduce man power requirement, to reduce the cost of application, and to control weeds effectively. Inspection at Chean Vanich estate confirmed that work instruction showing the quantity of chemical to be mixed per 20-liter container was displayed at the chemical mixing area. All chemical spraying workers who have been interviewed during the assessment understood and could explain the dosage of chemical and water as well as instruction of use (4.6.1).

All types of chemical used in the estates were registered under the Hazardous Substances Act B.E. 2535 (and its amendments) of Thailand. For example, the license numbers for glyphosate and paraquat issued by Department of Agriculture are 1528/2550 and 694/2547, respectively. Inspection of Chean Vanich chemical store confirmed that there were no any unregistered chemical pesticides that have been used and stored on shelves (4.6.2). Inspection at store also showed that storage of chemical pesticides have met the requirements of security, spill containment, ventilation and labeling. Running water is provided for workers who have to handle chemical pesticides. Chemical pesticides are always kept in store which is secured with lock. 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. There is procedure established for agrochemical use with a list of approved agrochemical and their dosage which depends on the purpose of use. The agrochemical use procedure described in document no.4.9 was used to train the workers who deal with agrochemicals. MSDS and how to apply chemical properly were one of the topics of training provided by Kenso Act Care Co.,Ltd, which is their supplier, on April 10th, 2012. Information on the areas where pesticides are used is recorded daily on a block basis. This information could be cross checked with the active ingredient and amount of agrochemicals used on daily basis (4.6.3, 4.6.5, 4.6.10 and 4.6.11).

Personal safety equipment or PPEs which include mask, eye goggle, chemical protection coat rubber glove, and rubber boot are provided to workers who are responsible for chemical spraying. Workers are required to wear PPEs properly before spraying as shown in Figure 9. From interviews and inspection on the list of workers who deal with chemical, it was found that majority of pesticide operators were male. There were no pregnant or breast feeding females working as pesticide spraying operators during the assessment at Chean Vanich estate (4.6.4 and 4.6.6).

Figure 9 Personal safety equipment for worker who sprays agrochemical

Yes


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Annual health check up is done for all workers including those dealing with agrochemicals with the cost absorbed by the estates. The workers have their health examined by the Plaipraya District Hospital on 11 May 2012. Any worker found sick from his job is immediately moved to a less hazardous job and given medical treatment until 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 hepatopancreas damage. 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 (4.6.7).

Company practice is to restrict the use of Paraquat for weed control in both immature and mature areas. Reduction of pesticide use is already planned in the continuous improvement plan(4.6.8). Estates have provided cleaning and washing area for dealing with used chemical containers and equipments after spraying. Workers are not allowed to bring chemical protection coat and/or water proof apron, containers and equipments used for spraying to clean at their houses. Inspection at the washing place showed that there was no risk of contamination to water resources because the washing place is provided with the suitable drainage system and septic tanks. The washing area is not located nearby to either water resources or workers’ houses (4.6.9).

Criterion 4.7 (C.4.7) An occupational health and safety plan is documented, effectively communicated and implemented.

Univanich has a safety, health and environment policy which was approved by the Managing Director on 8 April 2012. The policy is displayed on notice boards throughout the operation sites. Occupational health and safety plan is also documented by each mill and estate separately. The occupational health and safety plan that was established for year 2012 contained elements such as serious accident, lost time accident, non-lost time accident and KPI. The result of monitoring of occupational health and safety will be reported to either estate manager or mill manager on daily basis. The record of Chean Vanich estate showed that there was no any serious accident from January 2012 till the date of this assessment. There were only minor hand cut injuries. The accident occurrence of each estate will be summarized annually to calculate the lost time accident (LTA) rate. The occupational health and safety committee that is appointed by each mill and estate will be responsible to monitor the results of occupational health and safety implementation via the meeting on quarterly basis for estate and monthly basis for mill. Latest meeting of occupational health and safety committee at Chean Vanich estate was done on 2 September 2012. Inspection of workplaces at the mill and estate and observations of tasks showed that safe work practices were being implemented (4.7.1, 4.7.2 and 4.7.8).

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. Estates and mill have a documented annual training programme for safety. All new hires and existing workers undergo a safety induction programme that is supplemented with workplace specific training. At the estate, the safety awareness training programme is based on briefing at morning meeting conducted by estate managers. At the mill, training in safety topics in particular the use of PPE is carried out at the shift briefings. Safety training for each work station is a component of SOP training. First aid training is also given to all workers. The latest training on first aid at Chean Vanich estate was done on 4 May 2012. Workers were given information about the first aid kits available at the workplace, including location of the first aid kits. First aid kits are also provided in sufficient numbers comparing to the number of worker, maintained and stocked properly. First aid kits provided by the estates consist of disinfectant solution, hand cutting cover, medicine, plaster treatment, for

Yes


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FINDINGS/COMMENTS COMPLIANCE example (4.7.3, 4.7.4 and 4.7.9).

Pesticide training is carried out in-house and includes an evaluation of the chemical spraying workers’ understanding. 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. Risk assessment is established under the collaboration between estates and mill. Based on the result of risk assessment, it revealed that all activities of estate and mill have been taken into account to identify the risk that could occur and affect to worker’s health and safety. There are 3 levels of identified risk ranging from low risk (33-55 scores), medium risk (55-77 scores) and high risk (77-100 scores). At the mill; for example, identified risk consists of working with the boiler, working with high voltage of electricity, working in area with absence of oxygen, process of hooking a chain in sterilizer station and working with hazardous chemical. At the estate; for example, identified risk consist of working with agrochemical and working with sharp tools especially in harvesting activity (4.7.5). Based on the identified risks, appropriate protective equipment 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 established and identified the list of required PPEs described in the risk assessment. For instance, mill worker who has to work on hooking a chain in sterilizer station needs to wear ear plugs. Estate workers who deal with agrochemicals need to be provided with mask, eye protection goggles, hand gloves, water proof apron, and rubber boots. Harvesters are supplied with a safety helmet and sickle cover. PPE is also available for harvesting contractors when they have been employed at the harvest time (4.7.6).

Occupation health and safety meetings are held quarterly at each estate and are held monthly at each mill. The management representatives appointed by the Managing Director of Univanich and worker representatives of estates and mills are the key personnel in such meetings. The topic of discussion includes a report from each functional area, accidents, incidents and any concerns on health and safety raised by the workers. For instance, the latest meeting among representatives at Chean Vanich estate was done on 2 September 2012 and there were no any concerns of health and safety being raised by the workers (4.7.7).

Criterion 4.8 (C.4.8) All staff, workers, smallholders and contractors are appropriately trained.

Siam mill and estates have an annual training program for calendar year 2012 which was approved by the Engineering Manager on 11 November 2011 (The annual training program is integrated for all mills and estates of Univanich). Training program sets out the schedule of training for each mill work station and estate task. The training program; for example, includes firefighting, boiler operation, air pollution monitoring, waste management, handling of hazardous wastes, integrated pest control and agrochemical spraying. New employees will be given the training on company’s rules and regulations, health and safety concerns and relevant work instructions for their area of work. Harvesting contractors are also included in safety training conducted by the estate. Each mill and estate hold records of training carried out by both external and internal trainers as well as detailed information on the training topic and material used for the training. Records are also maintained of internal training for each work station and on-the-job instruction. For example, Chean Vanich estate carried out training on chemical usage on 10 April 2012 for chemical spraying workers. Training records for other topics such as fertilizer application, harvesting and IPM were checked during the audit. For independent farmers, the estates are considering to start giving the training on agronomic practices (4.8.1 and 4.8.2)

Yes

Criterion 5.1 (C.5.1) 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,


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FINDINGS/COMMENTS COMPLIANCE implemented and monitored, to demonstrate continuous improvement.

Univanich has appointed their staff who hold either Bachelor or Master degree on environmental background to assess the environmental impact by using the approach on environmental management system (ISO14001). Permanent officer who works at the Krabi Provincial Environmental Office was also invited to join the assessment team as the consultant. 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 ranging from 3 levels; low (normal), medium (abnormal) and high (critical). Score of possibility of adverse effects is used to rank the impacts. Based on the system of scoring, if the result of scoring was higher than 54 scores, a mitigation plan need to be established. For example, either emission or explosive from boiler operation had a highest score of possibility of adverse effect and could result in huge damage on both social and environmental aspects. To deal with this case, Wet scrubber was installed at Siam mill to remove pollutants from the furnace flue gas or from other gas streams last year. The impacts on environment from operation of estates could arise from agrochhemical usage, soil erosion, effluent from households in the estate and leakage of oil and fossil fuel. Documented procedures to mitigate these impacts on environment have established as described in the criterion 4.1 (5.1.1 and 5.1.2).

Yes

Criterion 5.2 (C.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 assessment was done by the facility themselves. It has not been approved yet by RSPO approved assessor as listed in RSPO’s website. From this reason, it was raised as Major non-conformity which covered all criterion of 5.2 whether indicator 5.2.1, 5.2.2, 5.2.3, and 5.2.4. Based on the result of HCV assessment done by the facility; however, it revealed that there are no endangered species listed according to the red list under IUCN and Office of Natural Resources and Environmental Policy and Planning (ONEP) of Thailand. Results of interview with the stakeholders during public consultation meeting on 9 October 2012 confirmed that neither IUCN red list nor list of endangered species in ONEP as shown in Figure 10 were found in the estates.

Figure 10 Endangered species listed in IUCN red list and ONEP

NC 1 of 2

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

Waste products and all sources of pollution are identified and listed in the document no. FV104 revision 00 and updated in December 2011 (5.3.1). Siam mill and estates have a waste management

Yes


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FINDINGS/COMMENTS COMPLIANCE plan code FV 301 revision 00 listing each of the solid and liquid wastes generated by the mill and estate together with a statement of the method of treatment and reuse, recycle or disposal. For example, decanter cake, POME, POME sludge cake and waste water generated by mill are listed as available waste for recycle in the estate. The plan includes maps showing the locations of the waste management facilities (mill and estate called waste home), effluent ponds and landfill. Waste home is also available at Siam mill. It is the permanent storage which provides sufficient containment system to deal with used liquid chemical in laboratory and obsolete lubricant/oil. Solid wastes can be collected at the waste home as well as with separation zone away from the area to deal with liquid chemical. Siam mill and estates maintain records of scheduled wastes collected by authorized company namely Mahachai Aeksirioil which holds the license number 3-106-5/46 issued by the Department of Industry Work. For example, used lubricant was sold to Mahachai Aeksirioil weekly. Scheduled waste such as empty pesticide containers were also kept in the permanent store sheltered from rain and with sufficient containment system to prevent any leakage of agrochemical to the environment that may remain in the containers due to improper cleanup after use. Empty containers have been triple-rinsed by water and kept at the sheltered area prior final disposal through the licensed collector periodically (5.3.2).

Mesocarp fibre is used as fuel for the mill boiler and a small quantity that is surplus to requirement is distributed to other mills of the company which required the extra fibre. Inspection at the estates confirmed that EFB and fronds are recycled to the estates. 100% of the EFB is applied to either Chean Vanich or Siam Palm estate. POME is also used as organic fertilizer for the block which is located near the wastewater treatment pond of Siam mill. Due to limitation of treated POME volume and long distance between Siam mill and Chean Vanich estate, POME is not applied in Chean Vanich estate. The estates maintain records of the areas where compost has been applied as a replacement of chemical fertilizer (5.3.3).

Criterion 5.4 (C.5.4) Efficiency of energy use and use of renewable energy is maximized.

Univanich and estates have a plan to strive for continuous efficiency improvement in the use of renewable energy. Univanich has successfully harnessed the renewable energy generated from either biogas or turbine (palm fibre is used as fuel in boiler) for its overall energy requirement. Records of electricity generated at Siam mill during the January-October 2012 period showed that approximately 2,432.87 MWhr was generated by turbine and about 527.31 MWhr by biogas. Electricity generated by biogas was mainly used at the mill. Although the quantum of electricity generated by steam turbine and biogas has increased compared to year 2011, there was still a need to purchase some 288.13 MWhr of electricity from PEA for the January – October 2012 period. The total amount of petroleum diesel or fossil fuel used for various purposes during the same period was 17,994 liters. The estates have optimized the harvesting schedule in order to minimize the use of diesel fuel for transporting FFB to the mills. Harvested FFB will be supplied to the nearest mill as the first priority. For example, FFB from Siam Palm estate will be supplied to the Siam mill in order to minimize the use of fossil fuel for transporting. Based on the total amount of electricity and fossil fuel used during January – October 2012, it worked out to one ton of CPO required about 30.44 Baht of electricity cost while the expense for fossil fuel cost was around 6.81 Baht per ton of FFB. (5.4.1 and 5.4.2)

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.

Inspection at estates confirmed that there was no evidence of open burning in the estates. For replanting purpose, excavators fitted with chipping bucket are used for felling and shredding the old mature palms due for replanting. The decomposed residues of the shredded palm will return organic matter and nutrients back to the soil to improve soil fertility. To demonstrate the effectiveness of zero burning policy, interviews with local stakeholders confirmed that land burning during replanting was

Yes


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FINDINGS/COMMENTS COMPLIANCE never carried out by the estates. This was further supported by field observations made on immature areas that were replanted in Siam Palm estate in the last 2 years. Inspection of the estates housing areas and immature areas to demonstrate whether fire is used for waste disposal or replanting was carried out and confirmed that fire has never been used according to results of interview with stakeholders. Municipal waste generated by households and office are disposed off by landfill. Inspection at the landfill was also carried out to confirm that location of landfill is away from river and houses.

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

Univanich has documented a pollution and emission control plan FV102 revision 00 dated 4 January 2012 that identifies the sources of emissions and methods for control. This documented plan will be shared and used by all group mills. Environmental quality monitoring report done by Environmental Research and Technology Co.,Ltd was a good source of reference for Univanich to develop the pollution and emission control plan. As stated in the plan, pollution in the mill mainly comes from the boiler, generator and vehicles. The Managing Director of Univanich has established a health, safety and environment (HSE) committee to look into the overall pollution and emission issues. The committee will hold monthly meeting to discuss and monitor not only health and safety matters but also issues of environment concern. For example, emissions from flue gas or from other gas streams that need to be controlled and removed by wet scrubber has become an outstanding task to be settled by the HSE committee. Work instruction for prevention of pollution from the boiler or gas streams has just been established by the HSE committee (5.6.1 and 5.6.2).

The monitoring of the emission parameters has been done according to the requirements of 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 mill will not impact negatively on the overall health and safety of the neighboring communities and also the environment at large. The Safety Technology Office will check and test the operation of boiler and sterilizer for example to ensure that they are still able to operate safely daily. The emission of these machines such as noise, air quality, and water quality are being tested and monitored by Environmental Research and Technology Co.,Ltd, an external independent laboratory in every 6 months. Results of environmental quality are used to determine the compliance with the national 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. There is a need to ensure compliance with the national standards because the environmental quality monitoring report done by Environmental Research and Technology Co.,Ltd has to be submitted to the Department of Industry Work for scrutiny(5.6.3).

For POME from Siam mill, part of it will be used for biogas generation in the biogas digester and the remainder for land application in the Siam Palm estate after being treated in the anaerobic ponds. The 5 parameters analyzed for in-flow and outflow POME samples are BOD, COD, pH, suspended solid, oil and grease (O&G). The samples are taken and tested monthly by external laboratory. Latest analysis of POME sample was done in September 2012 with the results for BOD, COD, pH, suspended solid, oil and grease (O&G) at 16 mg/L, 493 mg/L, 8.7, 140 mg/L and <0.2 mg/L, respectively (5.6.4).

Yes

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.


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Social impact assessment was carried out by qualified staffs under the recommendation of the permanent officer of Krabi Provincial Social Development and Welfare Office. SIA was done through a participatory approach during the public consultation meeting in each mill and estate. Questionnaire is also used to evaluate participant’s opinion. Participants signed an attendance sheet to confirm their participation. Siam mill and estates retained copies of all attendance records and minute of the meeting.

Inspection of documentation at sites visited showed that SIA report and records are held for each meeting carried out for the SIA process including notes of the main point of discussion. Based on these reports, it was confirmed that the stakeholders have not been affected by either mill or estate operations. Stakeholders were free to voice their concerns anytime. It is the responsibility of estate manager or mill manager who were designated by the Managing Director of Univanich to handle these concerns from the stakeholders in order to ensure that mitigation actions can be carried out immediately (if any) (6.1.1, 6.1.2 and 6.1.3). Even though some concerns were not caused by estate’s operation such as dust caused by FFB transportation on public roads, the estate took the responsibility to donate and repair the public roads to minimize the effect of dust on local communities.

Yes

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

Communication and consultation management guidelines are developed and documented. This guideline is recently reviewed in May 2012 after the first stage audit (pre-audit) done during 6-7 April 2012. Based on the communication and consultation management guidelines, the public consultation meeting is planned to be done annually in order to ensure that the concerns of affected persons or interested parties will be presented and considered at the appropriate stage (if any). The program of public consultation meeting to be discussed composes of policy of mill and estate, procedures related to how to give complaint and grievance, steps to deal with complaints and grievance, how to request for reviewing documents relating to environmental, social and legal issues, transparency, policy related to discrimination, respect to social groupings such as worker union, sexual harassment, EIA, SIA, risk assessment, occupation, safety, mitigation plan and possible impacts (6.2.1).

Mill and estate managers are the persons responsible for communication with affected persons or interested parties. They have been formally authorized by the Managing Director of Univanich on April 8th, 2012 (6.2.2). A list of stakeholders include local communities, statutories, local governments, Islamic religious leader, head of communities, NGO (if any), contractor, women representatives are kept and maintained properly. The list of stakeholders includes contact details and address so that communication with them can be done immediately if the need arises. The mill or estate managers are responsible for monitoring any changes on the stakeholder list. Result of the public consultation at Siam mill on March 15th, 2012 found that there was good communication between estate and stakeholders (6.2.3).

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.

The complaints, grievance and dispute procedure is documented by the central office of Univanich in April 2012. Not only stakeholder but also workers, supplier and customer can give the complaints and grievance to mill and estate. Whenever a complaint or grievance is raised by any stakeholder, it is the responsibility of mill and estate managers to handle and resolve the complaint. The minute of

Yes


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FINDINGS/COMMENTS COMPLIANCE public consultation meeting at Siam mill on 15 March 2012 revealed that there was no evidence of disputes or complaints from the community leaders, governmental officers, local communities or other stakeholders even though they were well informed of their rights to air any complaints and grievances, if any (6.3.1). It was noted that only positive responses were voiced by stakeholders to highlight what Univanich has done for them such as donations of lands to villagers, contributing donations to local school, making fence for school, as well as other activities requested by local communities and governmental departments as observed from the minutes of public consultation meeting. Complaint boxes are provided at the mill and estate offices to facilitate both internal and external stakeholders to forward their written complaints or grievances to the Management.

The documented complaint, grievance and dispute procedure also 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 (6.3.2).

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.

Univanich follows the Land Development Act B.E. 2551 (2008), which details the types of land rights and addresses the land acquisition processes. As Univanich holds and owns the proper legal land deeds and contracts for all its land used for oil palm cultivation, therefore, the issue of customary rights does not arise. Moreover, 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 current claim on customary rights over lands planted with oil palm by Univanich (6.4.1 and 6.4.3).

With respect to customary rights under the Land Development Act B.E. 2551 (2008), compensation will be made according to the decision of the independent arbitrator or court of justice if there is any. Under the provisions of the Act, the outcomes of compensation determinations are needed to be made publicly available (6.4.2).

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 a compulsory requirement by the Department of Labor of Thailand. The minimum wage for Krabi province during the period of assessment was 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 central office of Siam Palm mill and a copy is also given to worker. 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 and payment records of 3 harvesters were sampled and audited. According to the records of payment for the 3 harvesters, namely : Mr. Sornchai Tipkorat, Mr. Satit Nontawong and Mr. Somkid Chainakarin, they were paid 19,238 Baht/month, 24,000 Baht/month and 13,711 Baht/month, respectively. These showed that the average daily wage earned by the harvesters complied with and far exceeded the legislated minimum wage of 257 Baht/day (6.5.1).

Nonetheless, it was found that the contract for harvesters did not specify the necessary terms and conditions of employment with regards to annual leave, cultural holiday, any deduction and other benefits according to the company’s rules which have been approved by the Department of Labor. This was an interim consequence resulting from the conversion of estate contractors to company’s workers. Therefore, it was raised as as Minor non-conformity under the indicator 6.5.2.

NC 2 of 2


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All employees even contractor have been provided with suitable housing, water supplies, medical care and welfares by the company. 2 bedrooms with one separate bathroom are provided for each house so that workers can bring their families to live with them together. Estate clinics provide free medical treatment for staff, workers and their family members. Water and electricity are provided to each house for free of charge. Water tanks are provided for the workers to trap and store rain water for use during drought season or when water supply is interrupted. Residents are allowed to cultivate vegetables in small kitchen gardens around their houses. Playing fields and playgrounds are also provided for children within the housing area. Free school bus service is provided by estates to transport all school going children to and fro schools. The company also provides school uniforms, shoes, school bags and stationery to each child at the beginning of school year. Scholarship for child who has good GPA is also allocated by the estate (6.5.3).

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.

Univanich policy’s on the right to freedom of association which was signed by the Managing Director on 8 April 2012 allows staff and workers to join labor unions. The policy is displayed at the notice boards of the estates and mill. At the time of assessment, workers in all sites did not form their own labor union or join other labor associations (6.6.1). Instead of labor union, workers in each estate will elect their own leader to be their representative. Worker representative will be responsible to raise issues of concerns to the estate manager when necessary and required. Meanwhile, all workers still have the rights to raise their concerns anytime. A meeting between the Management and representatives of worker, women representatives and security officers was held at Chean Vanich estate on 29 September 2012 to discuss various topics of interest. Among others, the main matters that were discussed included RSPO, health and safety concerns and welfares (6.6.2).

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.

Inspection of records at the Siam mill and estates confirmed that no workers under 18 years of age were listed in the contract documents between company and workers. Also, no such under age workers were seen working in the fields during the course of field inspections. Interview with the HR manager also showed that checks on identify card of worker are carried out prior to hiring. The policy on child labor is also one of the policies of Univanich being displayed on the notice boards of either mill or estates (6.7.1).

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.

Univanich anti-discrimination policy is signed by the Managing Director on 8 April 2012 and displayed on the notice boards at the Siam mill and estates. This policy is socialized in the work contract with workers. Interview of staff and workers indicated that they were treated equally under of the equal opportunities policy. Not only existing workers but also incoming new employees are treated equally. The template for job vacancies announcement which is usually posted on notice boards was found to contain only details of job vacancies, basic qualifications required either in the forms of education background or working experience. Interview with staffs and migrant workers who moved from the

Yes


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FINDINGS/COMMENTS COMPLIANCE north-eastern part of Thailand confirmed that there was no discrimination in relation to ethnicity, religion or gender. Inspection at housing sites showed that migrant and local workers live and co-exist well at the worker quarters. Payment records viewed showed that the rate of salary payment for migrant and local workers are the same (6.8.1 and 6.8.2).

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.

Univanich policy on prevention of sexual harassment and other forms of violence against women is documented and displayed at the notice boards of the Siam mill and estates. This policy was signed by the Managing Director on 8 April 2012. Women representatives for gender committee are elected from the female workers at the Siam mill and estates. By virtue of being gender committee members, the women representatives automatically become members of the HSE committee. During the HSE committee meeting, women representatives will be responsible for raising any incidents on sexual harassment and any violence against female workers to the management representatives, if any. Nonetheless, the minutes of gender and HSE committee meetings indicated that thus far there were no cases of sexual harassment or other forms of violence against woment in the mill and estates. This was further confirmed through interviews with female staff and workers (6.9.1).

The procedures to deal with violation against women have been socialized to women employees in order to ensure that they understand the available grievance mechanism. Based on the result of interview with women employees, it was confirmed that they understood the policy and knew the grievance mechanism for complaints such as to approach any members of the gender committee or seek the help of estate or mill managers who were appointed by the Managing Director as the management representative to resolve any concerns of workers (6.9.2).

Yes

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

Univanich has made fair, legal and transparent agreement with their suppliers and independent growers. Even though there are no purchase contracts to bind the independent growers, they will be informed by the mill of daily FFB price. The price of FFB is determined by the purchasing department of Siam Palm mill according to the manual of FFB purchasing (OFP manual-pricing mechanism/calculation). The determined daily FFB price will be announced to all the group mills. 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 FFB price posted at Siam mill gate on 11 October 2012 was 3.6 Baht/kg of FFB. Records of mill gate price last year were also observed and found that they were available to the public when needed (6.10.1 and 6.10.2). It was surprised to observe that the actual payment to independent growers was different but higher than the posted gate price throughout year 2012. This was done as a strategy to attract more independent growers to sell their crops to Univanich mills. Interviews with FFB suppliers (independent growers) confirmed that payment are made by the mills in a timely manner and so far the independent growers did not have any issues of concerns on FFB pricing and payment (6.10.3).

Yes

Criterion 6.11 Grower and mills contribute to local sustainable development wherever appropriate.

Univanich has adopted the corporate social responsibility since the establishment of the company even though they have not been certified for CSR. A community leader who lives in the neighborhood of Univanich properties for more than 60 years has confirmed that Univanich has done many things for the local communities and governmental sectors such as carrying out local road construction/maintenance, allowing local communities to use the estate roads to shorten their

Yes


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FINDINGS/COMMENTS COMPLIANCE travelling distance, donating oil palm seedlings, rehabilitation of damaged mangrove areas, donating their lands to villagers, contributing donations to local schools, as well as other activities requested by local communities and governmental sectors, for example. In the last decade, Univanich has provided extension services and training for smallholders and independent growers on sustainable oil palm cultivation without any charges. This transfer of know-how to independent growers is done annually.

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.

As a measure to demonstrate continuous improvement in key operations, estates will only use pesticides for pest control when necessary. IPM approach will be intensified and implemented to check any insect pest outbreaks and rat attacks. Grass cutters/mowers will be attempted as a physical weed control measure to reduce the use of herbicides, especially paraquat over the next 3 years (8.1.1)

The environmental improvements are based on issues identified during the implementation of EIA and risk assessment. An example is the installation of wet scrubber to control pollution from point source and to reduce emission from flue gas and boiler (8.1.4). All environmental parameters need to be in compliance with the national standards as the environmental quality reports need to be submitted to the Department of Industrial Work for scrutiny (8.1.2).

The estates have fully utilized processing wastes from the mill, that is, EFB, POME and decanter cake together with pruned fronds from the estates to recycle nutrients to the fields. Mill and estates have monitored the amount of waste recycling in the last 3 years and found that recycling of POME in the estate has increased every year. Thus, applying EFB and POME to substitute for chemical fertilizers will continue as a major nutrient recycling operation and also as a measure to reduce expenses on fertilizers. Waste collection sites which worker called “waste homes” have been constructed to segregate out the domestic garbages into recycleable wastes and wastes that need to be disposed off to the landfills (8.1.3).

Social improvement will be emphasized for the workers and also the external stakeholders. Accident cases in mill or estates will be more closely monitored to minimize future occurrence. Improvement works on various amenities and worker houses had been stepped up in the last 3 years and this will be further pursued by the estates and mill. Communications with stakeholders will be held more regularly to ensure that any issues of concern on social aspects will be mitigated and resolved by management representatives of mill and estate immediately (8.1.5 and 8.1.6).

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 raised during the previous assessments.

3.2.1 Detail of Non Conformity


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Non Conformity Report – Univanich-001

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

Certification Audit Re-certification Audit Extension Audit Date : October 8-12, 2012

Company : Univanich Palm Oil Public Company Limited

Mgt. Rep. : Dr. Palat Tittinatchanon

Lead Auditor : CHAIYAPORN SEEKAO Auditor(s) :

Standard(s) : RSPO P&C TH-NI (June 07, 2012)

Date of issued : October 12, 2012 Discussed with : RSPO Team

Location : Siam mill 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

Description of Finding/Objective Evident:

5.2.1: Even though the HCV assessment report has been done by the facility, it has not been approved yet by RSPO appointed assessors. 5.2.2, 5.2.3, 5.2.4: Due to the non conformity for criteria 5.2.1 especially identification of HCVs areas, the relevant steps required for indicator 5.2.2, 5.2.3 and 5.2.4 also needed to be evaluated by approved HCV assessor

Classification Major Minor

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

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

HCV assessment was done by approved HCV assessors who work at Forest Industry Organization, Ministry of Natural Resource and Environment of Thailand. Based on the results of HCV assessment, HCV1.1, HCV1.3, HCV3, HCV4.2 and HCV5 were found at Siam Palm estate. Total area of HCVs is 676.65 ha. Conservation management plans to avoid damage and to prevent the deterioration of HCV habitats were established and suggested by Forest Industry Organization

(Mng. Rep.?))

Cause of nonconformity (by company):

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 being approved by RSPO EB before conducting the certification audit

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

The company will contact approved HCV assessor from Forest Industry Organization to conduct the HCV assessment

(Mng. Rep.)


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Non Conformity Report – Univanich-002

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

Certification Audit Re-certification Audit Extension Audit Date : October 8-12, 2012

Company : Univanich Palm Oil Public Company Limited

Mgt. Rep. : Dr. Palat Tittinatchanon

Lead Auditor : CHAIYAPORN SEEKAO Auditor :

Standard(s) : RSPO P&C TH-NI (June 07, 2012)

Date of issued : October 12, 2012 Discussed with : RSPO Team

Location : All Estates

RSPO – Criterion : 6.5.2

Employment contract between employer and employees/workers in accordance with labour law or agreement with the trade union or agreement by both parties, specifying details of payment and employment conditions e.g. working hours, deductions, overtime, sickness, holiday entitlement, maternity leave, reasons for layoff, period of prior notice, etc. - Employment contract should provide details of employment, taking into consideration the guideline from Labour Protection Act, B.E. 2541 (and its amendments) in languages understood by the workers or explained carefully to them by a management staff.

Description of Finding/Objective Evident: Because estate’s contractors have just become the company’s workers; however, labour contract didn’t provide necessary information regarding (1) annual leave (2) cultural holiday (3) any deduction (4) other benefits

Classification Major Minor

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

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

The company is in the process to convert contract workers to be company employees. The process is to be completed by first quarter of year 2013.

(Mng. Rep.)

Cause of nonconformity (by company): Currently company employs casual contract workers to work in estates for casual harvesting and field

maintenance. During the period of assessment, the company is in the process to convert contract workers to be company employees.

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

1. Casual contract worker will be converted to be company employee by the first quarter of year 2013

2. The same company rules, regulation and terms and conditions will be used for all company employees

(Mng. Rep.)


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OPPORTUNITY FOR IMPROVEMENT (OFI):

P&C OFI Location

4.1.1 Updated reference number and new date of approval should be made for any mill or estate operating procedures that have been newly revised so as to facilitate in tracking changes and history of operation procedures

All mills and estates

4.5.3 Template for calculation of toxicity unit for agrochemicals should be developed and circulated to all estates as a common computation reference rather than letting individual estate to develop its own calculation formula

All estates

4.6.4 Next calibration date of instruments that need to be calibrated periodically such as biogas measurement meter should be indicated and posted clearly in that instrument

All mills

4.7.3 Template for on-the-job-training (OJT) should be circulated for recording the completion of training for new employees rather than using the evaluation format for new employee

All mills

4.7.5

New machines and facilities which can reduce any adverse affects on occupational health and safety aspects should be installed for mill operation. An appropriate review and amendment on risk assessment should be ensued following the new installations. Any obsolete practices which are no longer in use in the mill should be considered for removal (if any)

All mills

5.1

• Working together by representative of each estate for assessment of environmental impact (EIA) using approach of ISO14001 can be done.

• Mitigation plan to reduce identified impacts on environment should be cleary definded on how, who, where that need to be mitigated.

• Action or implementation according to the mitigation plan should be recored and reviewed periodically rather than using the visual inspection

All mills and estates

5.3.1 Wastes that might be recycled should be listed and made known to the relevant staff in order to encourage them to give the necessary support and cooperation for the waste segregation program

All mills

6.5 Even though water tanks are provided by estates to store rainfall for use as drinking water, samples of the water should be tested regularly to ensure that it is always safe for human consumption

All estates

6.9 The mechanism or method of communication for policy to prevent sexual harassment and all other forms of violence against women should be establised to ensure that all women staff are well informed on the policy

Siam mill


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3.2.2 Resume of Audit Results

See Table 3-2 below.

Table 3-2 Resume of Audit Results

Thailand 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 3 1 1 1 1 1 NA 1

#NC 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3 0 0 0 0 0 0 0 0 2 0 0 0 0 0 - 0

Table 3-3 RSPO Supply Chain Standard for Mill

RSPO Supply Chain Certification Standard: Module E – Mass Balance kindly make a revision manually on the table if it is module D

SCC 1.1 a 1.1 b 1.2 2.1 2.2 3.1 3.2 3.3 a 3.3 b 3.3 c 3.4 4.1 5.1 6.1

Status 3 3 3 3 3 3 3 3 3 3 3 3 3 3

#NC 1 1 1 1 1 1 1 1 1 1 1 1 1 1 NOTE: Audited: “1” Conforming; “2” Minor Non-Conformity; “3” Major Non-Conformity; “NA” not

applicable, “#NC” : Number of Non-Conformities found

Table 3-4 Audit Outcome

AUDIT OUTCOME

P&C audit 1 Non-Conformities MAJOR

1 Non-Conformities MINOR

SCC audit module E

0 Non-Conformities MAJOR

3.3 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 mills and estates of Univanich have had a positive influence in the area.

Interviews with the stakeholder were used to obtain feedback whether positive or negative by using the

following question for example:

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

safety and health to the public and stakeholders?


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• Do mills and estates hold regular meetings on community development?

• Do mills 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 mills or estates?

• Are there any conflicts not yet solved satisfactorily?

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

• Do mills 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?

Results 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

Univanich Palm Oil Public Company Limited

Jakarta - December 28, 2012

Head of Operations, Environment and Sustainability

(Dr. Palat Tittinatchanon)

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

Jakarta - December 28, 2012

Lead Auditor

(Chaiyaporn Seekao)


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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


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APPENDIX C Mass Balance Supply Chain for Mills

STANDARD SOP/Policy/Others Records/Evidence

.1.1

E.1.Documented Procedure

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

√ There is a set of SOP developed to ensure the implementation of supply chain mechanism at mill, from receiving FFB, processing, storage, and dispatch CPO.

Master list SOP Mill and Plantation

b) The name of the person having overall responsibility for and authority over the implementation of these requirements and compliance with all applicable requirements. This person shall be able to demonstrate awareness of the facilities procedures for the implementation of this standard.

√ RSPO coordinator is in charge and has the authority to monitor the implementation of supply chain procedure, including the recording of incoming and outgoing of sustainable and non-sustainable oil.

There is a letter of Appointment from President Director to RSPO coordinator and its job description as well.

Job Description for RSPO Coordinator), and Job Description for Mill Manager)

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

√ All recording of incoming and outgoing certified and non-certified FFB are documented in the Mill Daily Report. The weighbridge ticket for transporting FFBs to the mills has indicated status of FFBs to identify and differentiate between non-sustainable and sustainable FFBs.

Implementation of the mechanism shall be checked and verified in the surveillance audit

Sample of Daily and Monthly Production Report

E.2 Purchasing and goods in

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

√ All documents and records of volumes of certified and non-certified FFBs received will be recorded in the Daily Production Report

RSPO procedure will be followed up accordingly upon certification. This will be checked during surveillance audit

Sample of Daily Production Report

Sample of Monthly Production Report

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

√ This is not applicable as the mill has not yet received RSPO certification. Sales of CSPO have not applicable yet.

E.3 Record keeping


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

√ Upon certification, all records will be maintained accordingly.

There will be a daily, monthly and 3 monthly basis report to monitor the incoming and outgoing oil based on the mass balance requirements. There was procedure to maintain records

There was Master List of Record that figure out all relevant RSPO records, including for mass balance supply chain

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

√

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

√ a) There was mechanism on how

to calculate mass balance of FFB purchased as well as the CPO and PK to be dispatch through the table Daily Production Report. Standard operating procedure was in progress to be developed.

In the form Daily Production Report, and Monthly Production Report, it has been separate calculation between certified and non certified FFB purchased

The record of implementation of the mass balance calculation shall be checked and verified in the next surveillance audit.

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

√ NA NA

c) The facility can only deliver Mass Balance sales from a positive stock. However, a facility is allowed to sell short.

√ This statement will be elaborated in the procedure of mass balance calculation

The evidence of this will be checked and verified in the next surveillance audit.

3.4 The following trade names should be used and specified in relevant documents, e.g. purchase

√ This statement will be elaborated in the procedure of mass balance calculation

The evidence of this will be checked and verified in the next surveillance audit.

E.4 Sales and good out

4.1 The facility shall ensure that all sales invoices issued for RSPO certified products delivered include the following information: a) The name and address of the buyer; b) The date on which the invoice was issued; c) A description of the product, including the applicable supply chain model (Segregated) d) The quantity of the products delivered; e) Reference to related transport documentation.

√ There was standard operating procedure. In this SOP, it was confirmed that all sales invoices issued for RSPO certified products to be dispatched include the information of:

- The name and address of the buyer;

- The date on which the invoice was issued

- Description of the product, including the applicable supply chain model (IP/SG/MB)

- The quantity of the products delivered

There were no records available since the mass balance supply chain mechanism not implemented yet. However, the SOP was completed with format of invoice that includes all requirements mentioned in the procedure.


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- Reference to related transport documentation.

E.5 Training

5.1 The facility shall provide the training for all staff as required to implement the requirements of the Supply Chain Certification Systems.

√ There was training policy issued by Univanich

There was training records on mass balance calculation to related staffs. The training program was available and the implementation will be checked and verified on surveillance audit

E.6 Claims

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

√ The procedure will be followed up accordingly upon certification. This will be checked during surveillance audit

Not available yet

Documents

RSPO CERTIFICATION ASSESSMENT PUBLIC SUMMARY … · Jl. Jababeka XVII E Blok U No. 27B Kawasan Industri Jababeka I Cikarang Bekasi 17530 – Indonesia Tel : +6221 898 403 18 – 19