FELDA PLANTATIONS SDN BHD

21
FELDA PLANTATIONS SDN BHD RSPO Membership No: 1-0013-04-000-00 PLANTATION MANAGEMENT UNIT KKS Bukit Mendi Grouping Triang, Pahang, Malaysia

Transcript of FELDA PLANTATIONS SDN BHD

Page 1: FELDA PLANTATIONS SDN BHD

FELDA PLANTATIONS SDN BHD RSPO Membership No: 1-0013-04-000-00

PLANTATION MANAGEMENT UNIT KKS Bukit Mendi Grouping Triang, Pahang, Malaysia

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Public Summary Report

Report No.: R2529/11-4 Felda Plantations Sdn Bhd KKS Bukit Mendi Grouping: Annual Surveillance Assessment (ASA-02)

INTERTEK RSPO Report: September 2014 Page 2 of 21

ANNUAL SURVEILLANCE ASSESSMENT (ASA-02) REPORT ON RSPO CERTIFICATION

PUBLIC SUMMARY REPORT

FELDA PLANTATIONS SDN BHD

(358158-V)

RSPO Membership No: 1-0013-04-000-00

PLANTATION MANAGEMENT UNIT KKS Bukit Mendi Grouping

Triang, Pahang, Malaysia

Certificate No: RSPO 927988 Issued date: 5 October 2012 Expiry date: 4 October 2017 Assessment Type Assessment Dates Pre Assessment 17 - 19 October 2011 Initial Certification (Main Assessment) 05 - 06 December 2011 Annual Surveillance Assessment (ASA-01) 13 - 16 May 2013 Annual Surveillance Assessment (ASA-02) 21 - 24 July 2014 Annual Surveillance Assessment (ASA-03) Annual Surveillance Assessment (ASA-04) Re-Certification

Intertek Certification International Sdn Bhd (formerly known as Moody International Certification (Malaysia) Sdn Bhd) 6-L12-01, Level 12, Tower 2, Menara PGRM No. 6 & 8 Jalan Pudu Ulu, Cheras, 56100 Kuala Lumpur, Malaysia.

Tel: +00 (603) 9283 9881 Fax: +00 (603) 9284 8187 Email: [email protected] Website: www.intertek.com

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TABLE OF CONTENTS

1.0 SCOPE OF ANNUAL SURVEILLANCE ASSESSMENT

1.1 Introduction 4

1.2 Location (address, GPS and map) mill, estates and hectarage 4

1.3 Description of supply base (fruit sources) 4-5

1.4 Year of plantings and cycle 5

1.5 Summary of Land Use – Conservation and HCV Areas 5-6

1.6 Other certifications held and Use of RSPO Trademarks 6

1.7 Organizational information/contact person 6

1.8 Tonnages Verified for Certification 6-7

1.9 Time Bound Plan 7

1.10 Abbreviations Used 8

2.0 ASSESSMENT PROCESS

2.1 Assessment Methodology, Plan & Site Visits 9

2.2 Date of next scheduled visit 9

2.3 Qualifications of the Lead Assessor and Assessment Team 9

2.4 Certification Body 9-10

2.5 Process of Stakeholder consultation 10-11

3.0 ASSESSMENT FINDINGS

3.1 Summary of findings 11

3.2 Status of Identified Noncompliance and Corrective Actions, Observations and Identified Positive Elements

11

3.3 Feedback Raised by Stakeholders and Findings 11

4.0 ASSESSMENT CONCLUSION AND RECOMMENDATION

4.1 Acknowledgement of Internal Responsibility and Confirmation of Assessment Findings 12

4.2 Intertek RSPO Certification details for KKS Bukit Mendi grouping grouping 13-14

APPENDICES

Appendix A Assessment Plan 15-16

Appendix B Maps of location – Mill, Estates, Conservation and HCV areas 17-21

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1.0 SCOPE OF ANNUAL SURVEILLANCE ASSESSMENT

1.1 Introduction

1.1.1 This Public Summary Report is the abridged version of the Annual Surveillance Assessment (ASA-02) Report prepared for public notification, taking into consideration the protection of confidential and sensitive information of the client organization, which is consistent with the guiding principle specified by RSPO Certification System Standard. In the event, stakeholders, who require further details or clarification on any part of the content of the Public Summary Report, may contact RSPO Secretariat or Intertek Certification International. The full version of the assessment report has been submitted to RSPO Secretariat.

1.1.2 This Annual Surveillance Assessment (ASA-02) was conducted on the KKS Bukit Mendi grouping of Felda Plantations Sdn Bhd (hereafter abbreviated as FELDA), from 21 to 24 July 2014 to assess the organization’s operations of the mill and its supply bases, for continued compliance against the RSPO Principles and Criteria (April 2013), Malaysian National Interpretation (MY- NI, November 2010) and RSPO Supply Chain Certification Standard (November 2011) for POM. This assessment also includes a review of the changes made by the PMU to comply with the requirements of the ratified new RSPO Principles and Criteria (effective 25 April 2013). It was found that the PMU is aware of the new RSPO Principles and Criteria but yet make the necessary changes required. The plantation management unit (PMU) or management unit is equivalent to a certification unit as defined in the RSPO Certification Systems Document. Each PMU consists of one mill and its supply bases which are made up of estates owned by Felda Plantations Sdn Bhd 1.2 Location (address, GPS and map) of palm oil mill and estates

KKS Bukit Mendi Grouping consists of one (1) palm oil mill, namely Bukit Mendi Mill and four (4) estates as indicated in Table 1 below, which includes the addresses and GPS locations of the mill and estates. The location maps are provided in Appendix B.

The 4 estates are owned by organized smallholders (Scheme Smallholders) under the Felda Settlers’ Scheme. Bukit Mendi Estate, Bukit Puchong Estate, Mengkuang Estate and Sungai Kemahal Estate consisted of 455, 433, 99 and 428 settlers respectively. The total number of organized smallholders is 1,415. The smallholders are under the scheme management of Felda or Felda Teknoplant Sdn Bhd (FTPSB) as indicated in Table 1 below.

Table 1: Address of Palm Oil Mill, Estates and GPS Location

GPS Reference Name Address

Latitude Longitude

Bukit Mendi Mill – POM

(Capacity:30 MT/hour) Kilang Sawit Bukit Mendi, 28320 Triang, Pahang Darul Makmur, Malaysia

3° 12’20.89” N 102° 18’12.39” E

Bukit Mendi Estate

(Felda & FTPSB) Pejabat Felda Bukit Mendi, 28320 Triang, Pahang Darul Makmur, Malaysia

3° 12’20.89” N 102° 18’12.39” E

Bukit Puchong Estate

(Felda & FTPSB) Pejabat Felda Bukit Puchong, 28320 Triang, Pahang Darul Makmur, Malaysia

3° 13’39.41” N 102° 19’45.15” E

Mengkuang Estate

(Felda & FTPSB) Pejabat Felda Mengkuang, 28320 Triang, Pahang Darul Makmur, Malaysia

3° 11’59.67” N 102° 23’1.03” E

Sungai Kemahal Estate

(Felda) Pejabat Felda Sungai Kemahal, 28320 Triang, Pahang Darul Makmur, Malaysia

3° 12’20.89” N 102° 18’12.39” E

Note. Felda Teknoplant Sdn Bhd (FTPSB) is a subsidiary of Felda / FGVPM.

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INTERTEK RSPO Report: September 2014 Page 5 of 21

1.3 Description of supply base (fruit sources)

The supply base, i.e. FFB sources to the POM at KKS Bukit Mendi Grouping PMU are from the abovementioned 4 estates which are owned by organized smallholders under the FELDA Scheme.

There were other Outside Crop Producers (OCPs) which also supplied FFB to the POM. The FFB from the OCP are considered as non-certified FFB in the overall assessment on Bukit Mendi Grouping PMU.

Details of the planted hectarage for the FFB supply for KKS Bukit Mendi grouping are as shown in Table 2 below.

Table 2: Estate Area Summary

Area Summary (ha)

– 2013

Area Summary (ha)

– 2014 Estate

Certified Area Planted Area Certified Area Planted Area

Bukit Mendi Estate 2,587.29 1,893.33 2,587.29 1,893.33

Bukit Puchong Estate 2,511.25 1,870.38 2,511.25 1,870.38

Mengkuang Estate 636.09 610.84 636.09 610.84

Sungai Kemahal Estate 2,103.49 1,863.65 2,103.49 1,863.65

Total: 7,838.12 6,238.20 7,838.12 6,238.20

Notes:

1. This Annual Surveillance Assessment (ASA-02) covered the overall land use for oil palm plantation areas, and the identified Conservation areas including HCV areas (if any) marked out at the estates.

2. The estates sampled for this Assessment have been selected based on their potential risks on social, environmental and biodiversity issues such as their proximity to forest reserves, hill sides, riparian zones and high conservation value areas.

1.4 Summary of plantings and cycle

The 4 estates been developed beginning from 1985 onwards. Mengkuang Estate and Sungai Kemahal Estate started the 2nd cycle of planting in Dec 2011.

The year of plantings and age profiles for the respective estates is as per Table 3 below.

Table 3: Age Profile of Planted Oil Palm (FY Jul 2013 / Jun 2014)

Estate Name Year of Planting

Cycle of Planting Mature OP (ha) – Above 3 years

Immature OP (ha) – 3 years & below

Bukit Mendi Estate 1995 - 1998 1st cycle 1,893.33 0

Bukit Puchong Estate 1997-1999 1st cycle 1,870.38 0

Mengkuang Estate 1989-2004

2011 1st cycle 2nd cycle

56.45

-

-

554.39

Sungai Kemahal Estate 1995

2011 1st cycle 2nd cycle

1,452.30

-

-

411.35

Total 5,272.46 965.74

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1.5 Summary of Conservation and HCV Areas

The summary of Conservation and HCV Areas as identified in KKS Bukit Mendi Grouping during this Assessment in 2014 is as shown in Table 4 below:

Table 4: Conservation and HCV Areas

# Statement of Land Use (Ha) ASA-01 (2013)

Hectarage - Ha

ASA-02 (2014)

Hectarage - Ha

1 Planted Area (ha) – Oil Palm

- Mature 5,272.46 5,272.46

- Immature 965.74 965.74

2 Conservation Area (ha)

- comprising buffer zones along small streams, hilly areas, swampy and unplantable areas

1.0 1.0

3 HCV Area (ha)

- comprising buffer zones near forest reserves, water catchments, burial & religious sites

0 0

1.6 Other certifications held and Use of RSPO Trademarks

The POM, i.e. KKS Bukit Mendi (registered under Felda Palm Industries Sdn Bhd) was certified to ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 since 11 Apr 2005, 19 Dec 2003 and 27 May 2005 respectively.

The RSPO’s trademarks and logo are not being used by the PMU audited. Instructions for use were provided and acknowledged by the PMU through a signed Memorandum of commitment agreeing to adhere to the latest “RSPO Rules on Communications & Claims”. 1.7 Organizational information / Contact Person Name: Norazam Abdul Hameed Designation: General Manager, Sustainability and Quality Management (PSQM) Department Full Address: Plantation Sustainability and Quality Management (PSQM) Department, Felda Global Ventures Plantations (Malaysia) Sdn Bhd, Tingkat 8, Balai Felda, Jalan Gurney Satu, 54000 Kuala Lumpur, Malaysia. Tel: 03-26005348 ext 5348 or 03-26005349 ext 5349 Fax: 03-26987816 Email: [email protected] Name: Anthonius Sani Designation: Sustainability Manager, Plantation Sustainability and Quality Management (PSQM) Department Full Address: Plantation Sustainability and Quality Management (PSQM) Department, Felda Global Ventures Plantations Malaysia Sdn Bhd, 3rd Floor, Balai Felda, Jalan Gurney Satu, 54000 Kuala Lumpur, Malaysia. Tel: 03-26005348 ext 5348 or 03-26005349 ext 5349 Fax: 03-26987816 Email: [email protected] 1.8 Tonnages Verified for Certification

The breakdown of all the suppliers and their tonnages of FFB supplied to the POM at KKS Bukit Mendi Grouping based on the reporting period for Jan-May 2014 (actual) and projected for June-Dec 2014 are as follows:

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Table 5: FFB Tonnages

# Estate /Supplier FFB Processed (MT) Main Receiving Mill

PMU Estates:

1 Bukit Mendi Estate (Felda) 37,344.40 KKS Bukit Mendi

2 Bukit Puchong Estate (Felda) 40,548.38 KKS Bukit Mendi

3 Mengkuang Estate (Felda) 0 KKS Bukit Mendi

4 Sungai Kemahal Estate (Felda) 36,637.56 KKS Bukit Mendi

5 Bukit Mendi Estate (FTPSB) 8,474.67 KKS Bukit Mendi 6 Bukit Puchong Estate (FTPSB) 7,132.18 KKS Bukit Mendi Sub-total from PMU estates 130,137.19

7 Kim Ma Oil Palm 53,600.97 KKS Bukit Mendi 8 Taiichi 6,231.50 KKS Bukit Mendi

9 Ong Chong Lim Plt. Sdn Bhd 4,255.00 KKS Bukit Mendi 10 Ladang Keng Tek Lee Sdn Bhd 173.62 KKS Bukit Mendi 11 Risda Plantation Sdn Bhd 3,351.38 KKS Bukit Mendi

12 Ning Chee Keong 1,066.36 KKS Bukit Mendi 13 Pekebun-pekebun Kecil 2,197.48 KKS Bukit Mendi

14 Jawatankuasa Kemajuan &

Keselamatan Kampung 470.41 KKS Bukit Mendi

Sub-total from Outside Crop Producers 71,346.72 KKS Bukit Mendi

Grand total 201,483.91

The annual certifiable tonnages of CPO and PK production by KKS Bukit Mendi Grouping from the supply base as assessed and verified during the current Assessment and projected for next year are detailed as follows:

Table 6: Certifiable FFB Tonnages

POM 2013

- Actual

2014

- Actual &Projected

2015

-Projected

Total Certifiable FFB Processed (MT)

124,901.48 130,137.19 118,100.00

Total Certifiable CPO Production (MT)

25,604.80 26,678.12 24,210.50

Total Certifiable PK Production (MT)

6,819.62 7,287.68 6,849.80

SCCS Model for POM MB MB MB

Note: Currently, the POM has established and maintained procedures for the book keeping and monitoring requirements for the CPO at the mill and was verified to be adopting the ‘Mass Balance – MB’ model in accordance with the RSPO Supply Chain Certification Standard (SCCS) requirements.

1.9 Time Bound Plan for Other Management Units

FGVPM Group operates 70 palm oil mills and 416 oil palm estates and schemes throughout Malaysia. The organization is a member of RSPO since 2004 and has been taking an active role in the RSPO certification.

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Currently, a significant number of its Certification Units is undergoing the RSPO certifying process in accordance with its time bound plan to achieve RSPO certification for all its plantation certification units by 2017. Based on the due diligence conducted on FGVPM there were no significant land conflicts, no replacement of primary forest or any area containing HCVs since Nov 2005, no labour disputes that are not being resolved through an agreed process, no evidence of non-compliance with law in any of the non-certified holdings. 1.10 Abbreviations Used

CB Certification Body ISCC International Sustainability & Carbon Certification

CHRA Chemical Health & Risk Assessment IUCN International Union for Conservation of Nature

CPO Crude Palm Oil KER Kernel Extraction Rate

CSDS Chemical Safety Data Sheets LTA Lost Time Accidents

CSPO Certified Sustainable Palm Oil MSDS Material Safety Data Sheets

CSPK Certified Sustainable Palm Kernel MTCS Malaysia Timber Certification Scheme

EFB Empty Fruit Bunch NCR Non-Conformance Report

EHS Environmental Health & Safety NGO Non-Government Organization

EIA Environmental Impact Assessment OER Oil Extraction Rate

ETP Effluent Treatment Plant OHS Occupational Health & Safety

FASSB Felda Agricultural Service Sdn Bhd PEFC Programme for the Endorsement of Forest Certification

FELDA Federal Land Development Authority PK Palm Kernel

FFB Fresh Fruit Bunch PMU Plantation Management Unit

FGVPM Felda Global Ventures Plantations (Malaysia) Sdn Bhd

POM Palm Oil Mill

FTPSB Felda Technoplant Sdn Bhd POME Palm Oil Mill Effluent

GAP Good Agriculture Practice PPE Personal Protective Equipment

HCV High Conservation Values SCCS Supply Chain Certification Standard

Intertek Intertek Certification International Sdn Bhd SOP Standard Operating Procedure

IPM Integrated Pest Management

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2.0 ASSESSMENT PROCESS 2.1 Assessment Methodology, Plan and Site Visits

Intertek has initiated public communications and notifications and invited the relevant stakeholders before the assessment to provide feedback and comments on their concern (if any) on KKS Bukit Mendi Grouping regarding the environmental, biodiversity, community development and other relevant issues. From 21-24 Jul 2014, the Assessment team of Intertek conducted the Annual Surveillance Assessment ASA-02 in which 2 out of the 4 estates of KKS Bukit Mendi Grouping, namely Bukit Mendi Estate and Bukit Puchong Estate as well as the palm oil mill were assessed for compliance against the RSPO requirements. The number of estates sampled was based on a minimum sample of 0.8√y where y is the number of management sub-units and the selection was made based on their potential risks on social, environmental and biodiversity issues such as their proximity to forest reserves, hill sides, riparian zones and high conservation value areas. From the 2 estates selected, the number of Scheme Smallholders sampled was 30 of the total of 1415 smallholders. During the on-site assessment, relevant documents and records, including Standard Operating Procedures (SOP), management plans, hectarage development, FFB, CPO and PK production, oil palm age profile, operational controls and measures, operational data and records, training records, etc. were reviewed and verified for compliance. The Assessment team using the process approach auditing technique covered the palm oil mill and estate operations, agricultural practices, pest management, pesticide and fertilizer application, occupational health and safety, social accountability, environment and other requirements. Stakeholders’ interviews were conducted during the assessment and feedback obtained as part of information and evidence gathering. (See section 2.5 Process of stakeholder consultation). KKS Bukit Mendi Grouping POM was also assessed against the requirements for the Mass Balance Module as specified in RSPO Supply Chain Certification Standard for CPO mill. This part of the assessment covered the verification of implementation of documented procedures and availability of records to demonstrate compliance against all the elements for Mass Balance requirements. These include documented procedure, purchasing and goods in, record keeping, sales and goods out, processing, monitoring and traceability of the CSPO and CSPK quantities, training for staff and claims. After completion of the on-site field assessment, Intertek also performed the evaluation of conformity against the RSPO Certification System requirements for CB. The Surveillance Assessment report, findings and associated documents were evaluated through an independent review by the Intertek Internal Evaluation Panel prior to Certification Decision and approval. The details of the Assessment Plan (actual on-site) are provided in Appendix A. 2.2 Date of next scheduled visit

The next scheduled visit will be the Surveillance Assessment which will be carried out within a 12-month period based on the certificate anniversary date. 2.3 Qualifications of the Lead Assessor and Assessment Team

Details of the Lead Assessor and Assessment Team and summary of their competency and skill may be obtained from RSPO or Intertek Certification International. 2.4 Certification Body

Intertek Certification International Sdn Bhd [formerly known as Moody International Certification (Malaysia) Sdn Bhd] is part of the Intertek Group, which is a worldwide technical services organization dedicated to reducing clients' risks by providing technical inspection services, management system certification in quality, environmental, occupational safety & health and product certification, RSPO P&C, RSPO SCC, ISCC, Marine Sustainability Chain-of-Custody, MTCS and PEFC Chain-of Custody certification in applicable industry sectors including the agricultural and forestry sectors. Intertek operates globally providing clients with a wide-ranging technical inspection expertise and access to thousands of skilled specialists worldwide. Intertek Group’s certification business is ranked in the top 10 worldwide, and is available globally offering certification across a wide range of industries.

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2.5 Process of stakeholder consultation

Stakeholder consultations began with notification of the upcoming assessment through the websites of RSPO, PGVPM and Intertek. E-mails, facsimiles and letters of the same were sent to applicable stakeholders including government agencies, NGOs and local communities. Telephone enquiries were made prior to the actual assessment and stakeholder’s response and feedback received were followed up accordingly.

During the assessment, stakeholders were interviewed and their feedbacks were recorded. Among the stakeholders consulted were workers, trade union leaders, women representatives; local community leaders, representatives of government departments / agencies and NGOs; external FFB suppliers, fertilizer suppliers and contractors. Details on stakeholders’ feedback, PMU response and Intertek verification / comments are provided in section 3.3. Among the list of key stakeholders consulted was the following:

Government Agencies (by emails) 1. Department of Environment 11. Department of Forestry (Pahang) 2. Department of Forestry Peninsular Malaysia 12. Department of Immigration (Pahang) 3. Department of Immigration 13. Department of Irrigation & Drainage (Pahang) 4. Department of Irrigation & Drainage 14. Department of Labour (Pahang) 5. Department of Labour 15. Department of Occupational Safety & Health (Pahang) 6. Department of Lands And Mines 16. Department of Wildlife & National Parks (Pahang) 7. Department of Occupational Safety & Health 17. Land and Mines Office (Pahang) 8. Department of Orang Asli Affairs 18. Pejabat Buruh (Pahang) 9. Department of Wildlife & National Parks 19. Pertubuhan Keselamatan Sosial (SOCSO) 10. Department of Environment (Johor) Statutory Bodies (by emails) 20. Malaysian Palm Oil Board (MPOB) - Central Region 25. Malaysian Palm Oil Board (MPOB) - Southern Region 21. Malaysian Palm Oil Board (MPOB) - Eastern Region 26. Malaysia Palm Oil Association (MPOA) 22. Malaysian Palm Oil Board (MPOB) - Northern Region 27. Malaysia Palm Oil Association Kuala Lumpur (MPOA) 23. Malaysian Palm Oil Board (MPOB) - Sabah Region 28. Malaysia Palm Oil Association Sabah (MPOA) 24. Malaysian Palm Oil Board (MPOB) - Sarawak Region NGOs (by emails) 29. All Women’s Action Society (AWAM) 58. Malaysian Nature Society Sabah 30. BCSDM - Business Council for Sustainable

Development in Malaysia 59. Malaysian Nature Society Terengganu

31. Borneo Child Aid Society (Humana) 60. Malaysian Plant Protection Society (MAPPS)

32. Borneo Resources Institute Malaysia (BRIMAS) 61. Mountaineering and Outdoor Pursuits Association of Negeri

Sembilan

33. Borneo Rhino Alliance (BORA) 62. National Council of Welfare & Social Development Malaysia –

NCWSDM 34. Center for Orang Asli Concerns COAC 63. National Union of Plantation Workers (NUPW) 35. Centre for Environment, Technology and

Development, Malaysia - CETDEM 64. Partners of Community Organisations (PACOS)

36. Consumers Association Of Penang - CAP 65. Penang Institute previously known as Socio-Economic &

Environmental Research Institute (SERI) 37. EcoKnights 66. Pesticide Action Network Asia and the Pacific (PAN AP) 38. Environmental Management and Research

Association of Malaysia (ENSEARCH) 67. Proforest - South East Asia Regional Office

39. Environmental Protection Society Malaysia (EPSM) 68. R.E.A.C.H. - Regional Environmental Awareness Cameron

Highlands 40. Friends of the Earth, Malaysia 69. Sabah Wetlands Conservation Society (SWCS) 41. Future in Our Hands Society, Malaysia 70. SEPA - Sabah Environmental Protection Association 42. Global Environment Centre 71. SUARAM - Suara Rakyat Malaysia

43. Institute of Foresters, Malaysia (IRIM) 72. SUHAKAM - National Human Rights Society - Persatuan

Kebangsaan Hak Asasi Manusia 44. JUST - International Movement for a Just World 73. Sustainable Development Network Malaysia (SUSDEN) 45. Malaysian CropLife & Public Health Association

(MCPA) 74. Tenaganita Sdn Bhd

46. Malaysian Environmental NGOs - MENGO 75. The Malaysian Forum of Environmental Journalist (MFEJ) 47. Malaysian National Animal Welfare Foundation -

MNAWF 76. TRAFFIC - the wildlife trade monitoring network

48. Malaysian Nature Society (MNS) Kuala Lumpur 77. Transparency International - Malaysian Chapter 49. Malaysian Nature Society Johor 78. Treat Every Environment Special Sdn Bhd. (TrEES) 50. Malaysian Nature Society Kedah 79. UNION – AMESU 51. Malaysian Nature Society Kelantan 80. United Nations Development Programme - UNDP Malaysia

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52. Malaysian Nature Society Kuching 81. Water Watch Penang (WWP) 53. Malaysian Nature Society Melaka/Negeri Sembilan 82. Wetlands International (Malaysia) 54. Malaysian Nature Society Miri 83. Wild Asia Sdn Bhd 55. Malaysian Nature Society Pahang 84. World Wide Fund for Nature (WWF) Malaysia 56. Malaysian Nature Society Perak 85. World Wide Fund of Nature (WWF) Sabah 57. Malaysian Nature Society Pulau Pinang

Local community (On-site interviews) Gender representatives Suppliers / Contractors Workers representatives Village Heads / Representatives 3.0 ASSESSMENT FINDINGS

3.1 Summary of findings

The assessment confirmed that KKS Bukit Mendi grouping demonstrated compliance against the RSPO Principles and Criteria (April 2013), Malaysian National Interpretation (MY- NI, November 2010) and RSPO Supply Chain Certification Standard (November 2011) for POM. 3.1.1 Supply Chain Certification Standards Findings - on CPO Mill The Supply Chain model applied at KKS Bukit Mendi grouping POM during this assessment is Mass Balance. 3.1.2 Status on Supply Chain on POM:

Based on the documents and records presented during the on-site verifications made, it is concluded that the KKS Bukit Mendi grouping POM has been able to comply with the requirements of the RSPO SCCS under the ‘MB’ model and is thus eligible for ‘MB’ trading for its palm products for year 2014. 3.2 Status of Identified Noncompliance and Corrective Actions, Observations and Identified Positive Elements

All previous non-conformances and observation have been closed off. During this assessment, there was 3 Major, 6 Minor NCR, 6 Observations. The root cause and corrective action taken by the company were reviewed and these had been accordingly incorporated into the full detailed report.

Identified Positive Elements

1) There was an increase in awareness and welfare for gender related activities – e.g. the establishment of Persatuan Kemajuan Wanita building for social and welfare activities for women at the Bukit Mendi PMU and neighbouring communities. 2) There was generally an improved awareness and commitment towards implementation of 5S, social, environment and safety issues in the estates audited. 3) Overall social welfare of the Settlers community was well taken care such as donations and arrangements for burial. 3.3 Feedback Raised by Stakeholders and Findings

Intertek had obtained some written and verbal feedback from the stakeholders on the environmental and social performance of KKS Bukit Mendi grouping operations in the course of assessment and consultations. During the Annual Surveillance Assessment (ASA-02), all pertinent feedback issues were reviewed and followed up for verification and these had been accordingly incorporated into the full detailed report.

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4.0 Assessment Conclusion and Recommendation

Based on the findings above, Felda Plantations Sdn Bhd, KKS Bukit Mendi Grouping had been able to demonstrate its compliance with the RSPO Principles and Criteria (April 2013), Malaysian National Interpretation (MY-NI 2010) and the RSPO Supply Chain Certification Standard (November 2011) for Palm Oil Mill. Therefore, it is recommended that the certification of Felda Plantations Sdn Bhd / Felda Global Ventures Plantations (Malaysia) Sdn Bhd for KKS Bukit Mendi Grouping be approved and continued.

Full report signed off by:

Mr. Augustine Loh

Lead Assessor

Intertek Certification International Sdn Bhd

4.1 Acknowledgement of Internal Responsibility and Confirmation of Assessment Findings

This is to acknowledge and confirm the assessment visits described in this report and the acceptance of the contents and findings in this assessment report.

Full report acknowledged and signed off by:

Mr. Norazam Abdul Hameed

General Manager, Plantation Sustainability And Quality Management (PSQM) Department

Felda Plantations Sdn Bhd / Felda Global Ventures Plantations (Malaysia) Sdn Bhd

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4.2 Intertek RSPO Certificate details for KKS Bukit Mendi grouping

Certificate No: RSPO 927988

Issue date: 5 October 2012

Expiry date: 4 October 2017

Organization Felda Plantations Sdn Bhd

Address of Head Office:

8th Floor Balai Felda, Jalan Gurney Satu, 54000 Kuala Lumpur, Malaysia

RSPO Membership No:

1-0013-04-000-00

Plantation Management Unit:

KKS Bukit Mendi Grouping

Address of POM: Kilang Sawit Bukit Mendi,28320 Triang, Pahang Darul Makmur, Malaysia

Standards:

RSPO Principles and Criteria (April 2013); Malaysian National Interpretation (November 2010); RSPO Supply Chain Certification Standards (November 2011) for the Palm Oil Mill.

Certification scope: Production of Crude Palm Oil and Palm Kernels

Supply Chain model for

CPO & PK: Mass Balance (MB)

Details of the Mill and Supply bases covered by this certificate and the tonnage approved are:

GPS Reference Name Address

Latitude Longitude

Bukit Mendi Mill – POM

(Capacity:30 MT/hour)

Kilang Sawit Bukit Mendi, 28320 Triang, Pahang Darul Makmur, Malaysia

3° 12’20.89” N 102° 18’12.39” E

Bukit Mendi Estate

(Felda & FTPSB) Pejabat Felda Bukit Mendi,28320 Triang, Pahang Darul Makmur, Malaysia

3° 12’20.89” N 102° 18’12.39” E

Bukit Puchong Estate

(Felda & FTPSB)

Pejabat Felda Bukit Puchong,28320 Triang, Pahang Darul Makmur, Malaysia

3° 13’39.41” N 102° 19’45.15” E

Mengkuang Estate

(Felda & FTPSB) Pejabat Felda Mengkuang,28320 Triang, Pahang Darul Makmur, Malaysia

3° 11’59.67” N 102° 23’1.03” E

Sungai Kemahal Estate

(Felda)

Pejabat Felda Sungai Kemahal,28320 Triang, Pahang Darul Makmur, Malaysia

3° 12’20.89” N 102° 18’12.39” E

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INTERTEK RSPO Report: September 2014 Page 14 of 21

The annual certifiable tonnages of CPO and PK production by KKS Bukit Mendi Grouping from the supply base/suppliers as assessed and verified during the current assessment are detailed as follows:

POM FY 2013

- Actual

FY 2014

- Actual & Projected

FY 2015

- Projected

Total Certifiable FFB Processed (MT)

124,901.48 130,137.19 118,100.00

Total Certifiable CPO Production (MT)

25,604.80 26,678.12 24,210.50

Total Certifiable PK Production (MT)

6,819.62 7,287.68 6,849.80

SCC Model MB MB MB

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Appendix A:

Assessment Plan (Actual)

Date Time Asssessment Team / Auditors and Assessment Activity

9.00 am – 12.00 pm

Travel to KKS Bukit Mendi, Triang, Pahang

12.00 pm -1.00 pm

Lunch Break

1.00 pm – 1.30 pm

Opening Meeting and Briefing at KKS Bukit Mendi– POM Office

1.30 pm – 2.30 pm

Assessment Team: • Review of System/Documentation Changes and Follow up on Issues from Previous

Assessment by Assessment Team

• Review of changes for compliance to revised P&C 2013

• Review of Time Bound Plan

• Verification for compliance with rules on partial certification

Augustine Loh (AL) – Lead Auditor

Dr. Ooi Cheng Lee (OCL)

Chen Fai Kok (CFK)

Jumat bin Majid (JMD)

Site Assessment at Bukit Mendi Palm Oil Mill

2.30 pm – 5.30 pm

• P5 Environmental, Conservation & Mill including HCV

• P8 Continual Improvement

• P1 Transparency • P2 Laws &

regulations • P3 Economic &

Financial Viability

• SCC for POM

o P4 Best Practices at Estates & Mill

• P7 New Plantings

• P8 Continual Improvement

• P6 Employees, Individuals & Communities incl. Gender Issues

• P8 Continual Improvement

5.30 pm – 7.00 pm

Break

21/07/2014 Day 1

7.00 – 8.00 pm

Team meeting and discussion

Date

Time

Asssessment Team / Auditors and Assessment Activity

AL OCL CFK JMD

Site Assessment at Bukit Mendi Estate

9.00 am – 1.00 pm

• Financial Viability

• P5 Environmental, Conservation & Mill including HCV

• P8 Continual Improvement

• P1 Transparency • P2 Laws &

regulations • P3 Economic &

Financial Viability

• P4 Best Practices at Estates & Mill

• P7 New Plantings

• P8 Continual Improvement

• P6 Employees, Individuals & Communities incl. Gender Issues

• P8 Continual Improvement

1.00 pm – 2.00 pm

Lunch

Site Assessment at Bukit Mendi Palm Oil Mill and/or Bukit Mendi Estate

22/07/2014 Day 2

2.00 pm -5.00 pm

• P5 Environmental, Conservation & Mill including HCV

• P8 Continual Improvement

• P1 Transparency • P2 Laws &

regulations • P3 Economic &

Financial Viability

• SCC for POM

o P4 Best Practices at Estates & Mill

• P7 New Plantings

• P8 Continual Improvement

• P6 Employees, Individuals & Communities incl. Gender Issues

• P8 Continual Improvement

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5.30 pm– 7.00 pm

Break

7.00 pm – 8.00 pm

Team meeting and discussion

Date

Time

Asssessment Team / Auditors and Assessment Activity

AL OCL CFK JMD

Site Assessment at Bukit Puchong Estate

9.00 am – 1.00 pm

• Financial Viability

• P5 Environmental, Conservation & Mill including HCV

• P8 Continual Improvement

• P1 Transparency • P2 Laws &

regulations • P3 Economic &

Financial Viability

• P4 Best Practices at Estates & Mill

• P7 New Plantings

• P8 Continual Improvement

• P6 Employees, Individuals & Communities incl. Gender Issues

• P8 Continual Improvement

1.00 pm – 2.00 pm

Lunch

Continue Site Assessment at Bukit Puchong Estate 2.00 pm -3.30 pm

• P5 Environmental, Conservation & Mill including HCV

• P8 Continual Improvement

• P1 Transparency • P2 Laws &

regulations • P3 Economic &

Financial Viability

o P4 Best Practices at Estates & Mill

• P7 New Plantings

• P8 Continual Improvement

• P6 Employees, Individuals & Communities incl. Gender Issues

• P8 Continual Improvement

2.00 pm -5.30 pm

Stakeholders’ Consultation (Mandatory for each category to be consulted): • Contractors • Suppliers • Transporters • NGOs • Government Department / Agencies • Local Community

5.30 pm– 7.00 pm

Break

23/07/2014 Day 3

7.00 pm – 8.00 pm

Team meeting and discussion

Date

Time

Asssessment Team / Auditors and Assessment Activity

AL OCL CFK JMD 9.00 am - 10.00 am Preparation of Closing Meeting

10.00 am - 11.00 am

Team Meeting and Discussions with KKS Bukit Mendi Management Representative

11.00 am - 12.00 pm

Closing Meeting & Briefing at Palm Oil Mill Office

24/07/2014 Day 4

12.00 pm - 3.00 pm

Travel back to Kuala Lumpur

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Appendix B-1:

Location Map of KKS Bukit Mendi Grouping

KKS Bukit Mendi Grouping

KKS Bukit Mendi Grouping

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Appendix B-2: Location Maps of FELDA BUKIT MENDI GROUPING-PMU

Estate 1: FELDA Bukit Mendi Estate

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Appendix B-3: Location Maps of FELDA BUKIT MENDI GROUPING-PMU

Estate 2: FELDA Bukit Puchong

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Appendix B-4: Location Maps of FELDA BUKIT MENDI GROUPING-PMU

Estate 3: FELDA Mengkuang

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INTERTEK RSPO Report: September 2014 Page 21 of 21

Appendix B-5: Location Maps of FELDA BUKIT MENDI GROUPING-PMU

Estate 4: FELDA Sg Kemahal Estate