Date: 07 October 2013cciglobe.com/files/SDKPOMS11_SAV.pdfCCI-QP-07-07A 1 Assessment Report Date: 12 Decemberto 2018 Company name Sime Darby Plantations Sdn. Bhd. Kerdau Palm Oil Mill

CCI-QP-07-07A

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Assessment

Report

Date: 12 December to 12 December

2018

Company name Sime Darby Plantations Sdn. Bhd.

Kerdau Palm Oil Mill – SOU 11

Address Wakil Pos Kerdau 28010 Temerloh

Report no MS18SM0040

Status of audit Surveillance If surveillance No.1

Date: 07 October

2013

[Disclaimer: The audit report has been generated to reflect the compliance of the company

toward the MSPO standard and every criterion’s have been in every effort taken to ensure

the accuracy of the assessment and reporting produced. As the assessment is been carried

out based on sampling, certain areas or processes may not be able to verified on its

compliances. ]

MSPO 253O:2013

Part 4

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Thank you for your trustful cooperation during our audit of your organization. This report has been prepared of

every effort to ensure the accuracy of the information recorded. The assessment is based on sampling on the

records, practice, documents and personnel, therefore the final results of the assessment is of representative

towards the system implementation of the organization. This report may generated to record as much of the

system implementation information but may still limited due to the sampling .This report details the assessment

results including strengths, opportunities, and weaknesses. These results were presented to your management at

the closing meeting of the audit. You can use these results to improve the effectiveness of your management

system. We look forward to continuing our partnership towards sustainable business success. This report has been

prepared in compliance to the ISO 17021:2011 requirements.

To ensure the next assessment will be carry out in compliance to the ISO 17021:2011, please remember to

immediately notify CARE Certification International about any significant change to your company at any point of

time. Together we will then coordinate appropriate measures to maintain your current certification. Such

circumstances include, for example, changes relating to the legal, commercial, organizational status or ownership,

organization and management (e.g. key managerial, decision making or technical staff), contact address and sites,

scope of operations under the certified management system, and major changes to the management system and

processes. Together we CARE and will then ensure the smoothness of the upcoming assessment. Thank you for

your persistence of support.

Signed for on behalf of CCI Signed for on behalf of client

Sign

Name :

IC :

Name Mohammad Hafizuddin Bin Rossley Company stamp

Date 12/12/2018

Email [email protected]

Fax no 038073 2688

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Section A General Information General

Audit objectives

To verify that the system initial implementation is in accordance

to requirements of the standard adopted.

To verify that the system implementation is continuously in

accordance to the requirements of the standards adopted.

To verify that the system implementation is continuously after

and in third years of implementation is in accordance to the

standards adopted.

Other, (please specify)

Integrate Assessment No

Issue of certificate Yes

Scope of Certification

Scope of certification in English The provision of Fresh Fruits Bunch (FFB) processing by palm oil

mill

Requirement not being applicable nil

Justification nil

Other language than above No

Changes from Previous registration No

Extension/changes of scope date NA

Contact Details

Management Representative En Amirul Akmal Daud

Alternate contacts En Hazrul bin Zulkefli

Management Representative contact no. +6012-5896199

E-mail address [email protected]

Fax Number +(603) 7848 4363

Fixed Line Number +(603)78484366

NO OF GROUP MEMBERS 1

Section B Previous Audit Result The result of the last audit system have been reviewed, in particular to ensure appropriate correction and

corrective action has been implemented to address any nonconformities identified. This review has concluded

that:

No nonconformities have been raised during last assessment.

Any nonconformities identified during last previous audit have been corrected and the corrective action continuous

to be effective.

The management system has not adequately addressed non conformity identified during previous audit

activities and the specific issue has been re-defined in the nonconformity section of this report.

Section C Conclusion

The audit team conducted a process based audit focusing on significant aspects/risk objectives required by

the standard(s). The audit methodology used is based on 3P which were People, Paper and Practice.

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The audit team concludes and express

CONGRATULATION and has

CONGRATULATION however some processes need to address non-compliance(s) but others has

SORRY and the organization has not established and maintained its management system in line with the

requirements of the standard and

demonstrated

not demonstrated

the ability of the system to systematically achieved agreed requirements within the scope of the

organizations.

Base on the record, there is/are NIL unresolved issue.

Therefore the audit team recommends that based on the results of this audit and the system's

demonstrated state of development and maturity, management system certification be:

Granted (initial certification or recertification)

Granted upon the acceptance of the noncompliance(s)

Continued (surveillance)

Continued (surveillance) upon the acceptance of the noncompliance(s)

Withheld

suspend until satisfactory corrective action(s) is completed

Others (please specify)

Note :

The assessment and recommendation for the initial or continue was based on random samples and therefore

nonconformities may exist which have not been identified. All the pages should be attached if the organization wishes to

copy and delivered to the interested party.

Section D (For Recertification only)

1 The company has demonstrated effective implementation and maintenance/improvement on its

management system

Yes No

2 The internal audit program has been fully implemented and demonstrates its effectiveness as a

tool for maintaining and improving the management system.

Yes No

3 The management review process demonstrates its capability to ensure the continuing suitability,

adequacy and effectiveness of the management system

Yes No

3 The management review process demonstrates its capability to ensure the continuing suitability,

adequacy and effectiveness of the management system

Yes No

4 Throughout the audit process, the management system demonstrates overall conformance with

the requirements of the audit standard

Yes No

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Section E Auditor and Auditees Names

CCI Assessors

Attendance during opening and closing meeting

Team leader Name Designation

Mohamad Hafizuddin As per Appendix 1

Team member

Ermadasila bin Mohammad

Johari Kasim

Trainee auditor

NA

Observer

Section F Audit Process Matrix

Next Audit Matrix (legend “ ” plan to cover & covered, “ ” for uncover)

Planned month & year 12/2018 12/2019 12/2020 12/2021 12/2022

Internal Audits

Stakeholder consultation / survey

Use of logo

Follow-up from previous audit finding

4.1 Management Commitment & Responsibility

4.1.1 MSPO Policy

4.1.2 Internal audit

4.1.3 Management Review

4.1.4 Continual Improvement

4.2 Transparency

4.2.1 Transparency of information and documents relevant

to MSPO requirements

4.2.2 Transparent method of communication and

consultation

4.2.3 Traceability

4.3 Compliance to legal requirements

4.3.1 Regulatory requirements

4.3.2 Land use rights

4.3.3 Customary land rights

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4.4 Social responsibility, health, safety and employment condition

4.4.1 Social impact assessment (SIA)

4.4.2 Complaints and grievances

4.4.3 Commitment to contribute to local sustainable

development

4.4.4 Employees safety and health

4.4.5 Employment conditions

4.4.6 Training and competency

4.5 Environment, natural resources, biodiversity and ecosystem services

4.5.1 Environmental management plan

4.5.2 Efficiency of energy use and use of renewable energy

4.5.3 Waste management and disposal

4.5.4 Reduction of pollution and emission including

green house gas

4.5.5 Natural water resources

4.6 Best Practices

4.6.1 Mill management

4.6.2 Economic and financial viability plan

4.6.3 Transparent and fair price dealing

4.6.4 Contractor

Assessment man days for the next assessment : 3 md. Recertification: 12/2021

Note: Recertification should be carry out minimum 2 months prior to the expiry of the certificate

Section G Audit Note Summary of Area Audited

BUSINESS AREAS DETAILS OF AUDITED SUMMARY

Auditor Date Time

HF 12/12/2018 9.30

Opening Meeting

a) introduction of the participants, including an outline of their roles;

b) confirmation of the scope of certification;

c) confirmation of the audit plan (including type and scope of audit, objectives and criteria), any

changes, and other relevant arrangements with the client, such as the date and time for the

closing meeting, interim meetings between the audit team and the client's management;

d) confirmation of formal communication channels between the audit team and the client;

e) confirmation that the resources and facilities needed by the audit team are available;

f) confirmation of matters relating to confidentiality;

g) confirmation of relevant work safety, emergency and security procedures for the audit team;

h) confirmation of the availability, roles and identities of any guides and observers;

i) the method of reporting, including any grading of audit findings;

j) information about the conditions under which the audit may be premature terminated;

k) confirmation that the audit team leader and audit team representing the certification body is

responsible for the audit and shall be in control of executing the audit plan including audit

activities and audit trails;

l) confirmation of the status of findings of the previous review or audit, if applicable;

m) methods and procedures to be used to conduct the audit based on sampling;

n) confirmation of the language to be used during the audit;

o) confirmation that, during the audit, the client will be kept informed of audit progress and any

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concerns;

p) opportunity for the client to ask questions.

Closing Meeting

a) informing the client that the audit evidence collected was based on a sample of the information;

thereby introducing an element of uncertainty

b) the method and timeframe of reporting, including any grading of audit findings;

c) the certification body's process for handling nonconformities including any consequences relating

to the status of the client's certification;

d) the timeframe for the client to present a plan for correction and corrective action for any

nonconformities identified during the audit;

e) the certification body's post audit activities;

f) information about the complaint handling and appeal processes.

g) Any diverging opinion that are not resolved.

h) opportunity for the client to ask questions.

Executive Summary

The audit was based on the MSPO2503:2013 Part 4 Standard, procedure and and applicable requirements. There is 3 Minor NC and 2 OFI been raise during the last year audit for 2nd stage assessment audit conducted on 28/10/2017 and found all the NC were closed accordingly and the evidence is adequate. The audit were done one whole day with total mandays for audit at Kerdau POM is four (3) mandays for this surveillance 1 audit. The audit was lead by Mr Mohamad Hafizuddin who are have almost 8 years in the sustainable certification and other management system certification such as RSPO, ISCC, ISO 14001, ISO9001 etc and also attended the MSPO Lead Assessor Course conducted by SIRIM. Co auditor is Mr Johari Kasim who are experienced in the RSPO and ISCC Certification and attended the MSPO Lead Assessor Course conducted by SIRIM.Co auditor is Mr Ermadasila Bin Mohamad who are experienced in the RSPO and ISCC Certification and attended the MSPO Lead Assessor Course conducted by SIRIM.

Stakeholder Consultation

For this period of review there is no stakeholder consultation been conducted due to surveillance audit.

Introduction

1. Location of the mill

NAME OF MILL LOCATION COORDINATE

Kerdau Palm Oil Mill Temerloh,Pahang 3.571494 , 102.2810388

2. Approximate tonnage certified per year

NAME OF MILL CPO PK

Kerdau Palm Oil Mill 27,622.61 7,119.50

3. Location of the supply base

NAME LOCATION

Dealers Nearby area / surrounding area of the mill.

Sri Kerdau Commodities Sdn. Bhd No.3 Jalan Besar Kerdau,28010 Temerloh,Pahang

Bakti Mas Bina Sdn. Bhd Lot 28234,Simpang Kerayong, KM2,Jalan Purun,28200

Bera,Pahang

SCL Commodities Sdn. Bhd Lot 413,Batu 58,Jalan Kuantan,27000 Jerantut,Pahang

Pro Island Enterprise Kampung Pulau Pasir Mandi, Jaln Bintang, Seberang

Temerloh,28000 Temerloh,Pahang.

Golden Horse Plantation Sdn. Bhd No.8888,JalanKemayan-Triang,28380Kemayan

Bera,Pahang

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Estate

Kerdau Estate Ladang Kerdau, Sime Darby Plantation Bhd

Wakil Pos Kerdau, 28010 Temerloh, Pahang

Jentar Estate Ladang Jentar, Sime Darby Plantation Bhd

Wakil Pos Kerdau, 28010 Temerloh, Pahang

Sg Mai Estate Sime Darby Plantation Bhd,Ladang Sg Mai 27000 Jerantut,

Pahang

Mentakab Estate Sime Darby Plantation Bhd,Mentakab Estate,Lanchang

Divison,28500 Lanchang Pahang

Chenor Estate Sime Darby Plantation Bhd,Ladang Chenor Divison,26400

Bandar Jengka, Pahang

4. Statistic of the supply base

NAME ESTIMATE TONNES

FFB/YEAR

Dealers

Sri Kerdau Commodities Sdn.

Bhd

13,206.02

Bakti Mas Bina Sdn. Bhd 19,784.68

SCL Commodities Sdn. Bhd 3,381..86

Pro Island Enterprise 1,814.99

Golden Horse Plantation

Sdn.Bhd

712.47

Estate

Kerdau Estate 30,327.06

Jentar Estate 12,179.00

Sg Mai Estate 26,442.27

Mentakab Estate 19,127.00

Chenor Estate 9,4462.21

Audit Checklist

P1: Management Commitment & Responsibility

Criterion 1 Malaysian Sustainable Palm Oil (MSPO) Policy

Indicator Requirement Findings

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4.1.1.1

A policy for the implementation of MSPO shall be established

KERDAU POM The management has established sustainable policy as sign by Sime Dary Managing Director on January 2015. As sighted 16 Policy towards Sustainability I. Safety & Health Management Policy II. Quality Management Policy III. Social & Humanity Management Policy IV. Corporate Policy Statement V. Polisi Keselamatan Makanan VI. Polisi Perlindungan Orang Utan VII. Polisi Perlindungan Kanak-Kanak VIII. Polisi Lean Six Sigma IX. Polisi Perlindungan Cerun & Sungai X. Environmental Managemenet Policy XI. Polisi Sosial XII. Polisi Alam Sekitar & Kepelbagaian Biologi XIII. Polisi Keselamatan & Kesihatan Pekerjaan XIV. Polisi Jantina XV. Polisi Karbon XVI. Polisi Kualiti Verified the policy had been display in office general board.Verified the policy had been brief to all employees, contractors and FFB suppliers during the MSPO Awareness Training dated 6/12/2018 4.1.1.2 The policy shall also emphasize commitment to continual improvement with the objective

of improving the milling operation.

KERDAU POM The management has established a Polisi Lean Six Sigma as policy to emphasize on the engagement and commitment to produce sustainable palm oil with the objective of improving the milling and estate operation for continual improvement to be implemented on the estate operation Continual Improvement Programs as sighted in Kaizen Charter. Criterion 2 Internal Audit


4.1.2.1

Internal audit shall be planned and conducted regularly to determine the strong and weak points and potential area for further improvement.

KERDAU POM Sighted the internal audit programmed in the “Program Internal Audit and Proposed Assessment Plan for SOU 11: Kerdau Plan Dated 7 Nov 2018. The internal audit was conducted on 7 Nov 2018 as sighted in internal audit plan. The assessment was conducted by Nadiah Mohamed Nazri and Amirul Akmal Daud. Seen the assessment covers requirements needed by the MSPO scheme and estate best practices which are result with 15 Major and 9 Minor nonconformances had been raised. Findings Internal Audit: 1. No COBC Training has been conducted 2. Record of SDPB Policy training has not been conducted 3. LRR is not adequately maintained 4. MRM for MSPO related issues, non-conformance raised during audit has not been conducted 5. Water Management Plan not available at the point 6. No record of chemical training conducted within 2 years as required in USECCH Regulation 2000. 4.1.2.2 The internal audit procedures and audit results shall be documented and evaluated,

followed by the identification of strengths and root causes of nonconformities, in order to implement the necessary corrective action

KERDAU POM The internal audit was conducted on 7 Nov 2018 as sighted in internal audit plan. The assessment was conducted by Nadiah Mohamed Nazri and Amirul Akmal Daud. Seen the assessment covers requirements needed by the MSPO scheme and estate best practices which are result with 15 Major and 9 Minor nonconformances had been raised. Findings Internal Audit: 1. No COBC Training has been conducted 2. Record of SDPB Policy training has not been conducted 3. LRR is not adequately maintained 4. MRM for MSPO related issues, non-conformance raised during audit has not been conducted 5. Water Management Plan not available at the point 6. No record of chemical training conducted within 2 years as required in USECCH Regulation 2000.

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4.1.2.3 Report shall be made available to the management for their review.

KERDAU POM The findings from internal audit were responded by the estate management during the “Management Review” of SOU 11: Kerdau RSPO & MSPO Internal audit on 26 November 2018. The audit findings, root cause and corrective action plan for internal audit findings has been discussed and reviewed during the meeting.

Criterion 3 Management Review


4.1.3.1 The management shall periodically review the continuous suitability, adequacy and effectiveness of the requirements for effective implementation of MSPO and decide on any changes, improvement and modification.

KERDAU POM Sighted the MRM dated on 26 Nov 2018 at estate’s office attended by 8 staff including estate manager. The management has conducted the staff and management meetings once per months. Last staff meetings were conducted on 26 Nov 2018 attended by 8 staff including POM Manager En Muhamad Shokkeri Bin Jab The minutes seen included of review Mill & Cost Performance, issue related to staff, and reviews on OSH matters

Criterion 4 Continual improvement


4.1.4.1 The action plan for continual improvement shall be based on consideration of the main social and environmental impact and opportunities for the company.

KERDAU POM Sighted 6 Project for Continual Improvement Programs as sighted in Kaizen Charter: 1. To minimize scrap iron at Kerdau Mill Dumping Yard Potential Benefits: RM57,600.00 2. TO reduce cost on renew/overhaul 6” Roller Chain at scrapper conveyor & Elevator Potential Benefits: RM42,7500.00 3. To eliminate Oil Purifier Maintenace cost at Kerdau Mill Potential Benefits: RM67.065 4. To reduce cst on concrete road construction ar Kerdau Estate/mill ( 20’W X 6’H X 110 Meter Pontential Benefits: RM73,965.00 5. To reduce oil loss in empty bunch from 0.45% to 0.30% to FFB by July 2018 Potential Benefits: RM927,175.00 6. To decrease and maintain BOD from >100ppm to <100ppm by July 2018 Potential Benefits: RM2000.00 4.1.4.2 The company shall establish a system to improve practices in line with new information

and techniques, and for disseminating this information throughout the workforce.

KERDAU POM -The SEMUA 2.0 as part of solution for data capture of Mandore and FFB recorder FFB count to send to mill as part utilizing digital technologies to digitize data at source and automate data flow. - The training of SEMUA 2.0 is being provided on-going basis by the Sime Darby HQ Support Team

P2: Transparency

Criterion 1 Transparency of information and documents relevant to MSPO requirements


4.2.1.1

The management shall communicate adequate information to other stakeholders on environmental, social and legal issues relevant to sustainable practices in the relevant languages and form.

KERDAU POM Communication the information with stakeholders and public through meeting with stakeholders. The lasts stakeholders meeting was conducted on 17 April 2018 which combined with Jentar Estate stakeholders meetings. The meeting were attend by 17 attendee including Doctor from Klinik Kerdau, Felcra Estate Manager, Police Chief Balai Polis Kerdau. The management has maintained a complaint and grievance log book that was established for tracking of external and internal complaint from stakeholders..



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4.2.1.2 Management documents shall be publicly available, except where this is prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes.

KERDAU POM Sighted in the “Sustainable Plantation Management System” manual date 01/11/2008, section “Documentation & Communication”- Clause 3.2, where appropriate information on sustainable activities will be made available to the general public/ stakeholders through yearly annual reports, circular, agreements, Sime Darby website and other publications. Specific request for information from interested parties shall be channeled to the PSQM, Communication Department and Legal Department of Sime Darbyy Criterion 2 Transparent method of communication and consultation


4.2.2.1 Procedures shall be established for consultation and communication with the relevant stakeholders

KERDAU POM There is a flow chart titled dated 1/11/2018 “ Sustainable Plantation Management System” – for Internal {Appendix 5.5.3.1} and external { Appendix 5.5.3.2} established for communicating and reporting of EMS, OHS and social issues with relevant stakeholders. Sighted complaint and grievances log book that been documented accordingly. - Communication the information with stakeholders and public through meeting with stakeholders. The lasts stakeholders meeting was conducted on 17 April 2018 which combined with Jentar Estate stakeholders meetings. The meeting were attend by 17 attendee including Doctor from Klinik Kerdau, Felcra Estate Manager, Police Chief Balai Polis Kerdau. Some issues had been raised during the meeting such as: I. Miscommunication between foreign workers and medical assistant at Klinik Kerdau II. Requested permission from mill management to conduct the tuberculosis for foreign workers III. Request an attention from mill management regarding mill lorries and tankers that used the estate road. 4.2.2.2 A management official shall nominated officials at the operating unit responsible for

issues related to indicator 1 (4.2.2.1)

.KERDAU POM - En Roziman Bin Ismail, POM Assistant Manager II has been nominated as officer to responsible to communication and consultation with the local communities and other interested parties. Sighted appointment letter date on 1 July 2018 4.2.2.3 List of stakeholders, records of all consultation and communication and records of action

taken in response to input from stakeholders should be properly maintained.

KERDAU POM The POM Management had maintained as per document list of stakeholders for FY 2018/19 consist of 9 contractors, 9 suppliers, 1 local communities (Felcra Plantation Berhad), 9 government agencies and others. The last meetings was on 17 April 2018, sighted the attendance record attached with the minutes of meeting. Criterion 3 Traceability


4.2.3.1 The management shall commit itself to implement and maintain the requirements for traceability and shall establish a standard operating procedure for traceability.

KERDAU POM The estate has implemented SOP for Tracebility Doc No: Appendix 15, dated May 2016 and SOP on Sustainable Supply Chain and Traceability SD/SDP/PSQM/001 dated 01/3/15 as to provide guideline to establish sustainable supply chain and traceability for FFB. Data capturing {bunch counting / grading} is done using conventional way of manual recording using bunch counter that link to “SEMUA 2.0’ System. This is a mobile solution for data capture of Mandore and FFB recorder FFB count, utilizing digital technologies to digitize data at source and automate data flow. 4.2.3.2 The management shall conduct regular inspections on compliance with the established

traceability system

KERDAU POM - The mill assistant management holds the responsibility on regular inspection, whereby the effectiveness of monitoring seen captured in the internal audit by PSQM. Aside there is also daily routine visit by the manager and annually visit by sustainability team members 4.2.3.3 The management should identify and assign suitable employees to implement and

maintain the traceability system


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KERDAU POM The management has appointed En Roziman Bin Ismail, POM Assistant Manager ii for Kerdau POM as officer to responsibility to maintain the traceability system. As sighted appoint letter date 1/07/2018. As per required performs to follows: I. Daily implementation of the MQMS II. Maintence of MQMS Manual and other documents (Review, Amendments and Update) III. Maintenance of the records, to ensure is controlled as per procedure IV. Calibaration of test equipments V. Overall in charge to ensure product dispatched by Estate meets customer requirements VI. Responsible for OSH, Environment and Quality Aspects VII. Records keeping for 10 years VIII. Monitor compliance and update change regulatory requirements. IX. Others related issues with regards to ISCC/RSPO/MSPO 4.2.3.4 Records of storage, sales, delivery or transportation of crude palm oil shall be maintained.

KERDAU POM -All data recorded as per SOP such as Date, Name of Supplier, Vehicle Number, Time In, Block, FFB Quality and Signature of Driver. The amount of FFB processed was crosschecked against the amount received. - The record of CPO Storage was recorded on the Daily Production Summary Report. As per date 3.12.2018 Total 6970.839Mt. - Record of Sales CPO had been record on Dispatched (Buyer’s and Group Mills) as per date 3.12.2018 Total: 4752.210 Mt - Record of FFB Received: i) Ticket No: 202161 Supplier: BAKTI MAS BINA SDN BHD D.O No: 251736 Date 30/11/2018 Net Weight: 37240kg ii) Ticket No: 202173 Suppler: GOLDEN HORSE PLANTATIONS SDN BHD D.O No: 51609 Date 30/11/2018 Net Weight: 27,970kg - Record of CPO Dispatch: Ticket No:014372 Customer: SDP NURI-Sime Darby Plantation Berhad Do No: 12783 Vehicele No: NDH 4959 Date: 17/11/2018 Nett Weight: 41190 Contract No: S/C-PSD/1811/CPO0674D - Record of PK Dispatch: Ticket No: 014433 Customer: Lee Oil Mills- Lee Oil Mills Sdn Bhd Po No: 60552 Vehicle No: CCN 9991 Date: 30/11/2018 Nett Weight: 41,900kg Contract No: S/PSD/1811/PK0884 P3: Compliance to legal requirements

Criterion 1 Regulatory requirements


4.3.1.1.

All operations are in compliance with the applicable local, state, national and ratified international laws and regulations

Kerdau POM Sighted, the management has establish legal requirement register in Standard operation manual (SOM) appendix 5.2.4 Procedure For legal And Other Requirements dated on 10 Dis 2018 is available. Verified during the audit, list pd licance and Permit related to the mill: 1) MPOB LIcense: Expired on 30/6/2018 Aktiiti berlesen -Menjual dan mengalih -Membeli dan Mengalih



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-Menyimpan -Mengilang 2)Perakuan bomba Expired on 07/11/2019 3)Akta Bekalan Elektrik 1990, Lesen Bagi Pepasangan Persendirian Expired on 7/1/2019 4)Lesen Penggunaan Sumber Air Expired on 31/12/2018 5)DOE License 4.3.1.2 The management shall list all laws applicable to their operations in a legal requirements

register

Kerdau POM -Documented procedure has been established and implemented; refer to Estate/Mill Quality Management System, Level 2: Standard Operating Manual, Appendix 5.2.4: Procedure for Legal and Other Requirements dated 10 December 2008. List of applicable legal and other requirements was made available during the assessment and compiled in the QSHE/04/5.2.4 folder. The legal register for KKS kerdau is available in Plantation quality management system(PQMS). The document was prepared by Mr Zul Hialmee Bin Siran and approved by the mill manager Mr Muhamad Shokkeri on 18 July 2018. As to date, Bukit Puteri POM had complied with all the applicable local, state, national and ratified international laws and regulations. 4.3.1.3 The legal requirements register shall be updated as and when there are any new

amendments or any new regulations coming into force.

Kerdau POM The LORR seen last reviewed and updated on 18 July 2018 by the Mr Zul Hilmee and approved POM Manager. There is SOP Manual [Appendix 5.2.4a] that guides the operating units on how to monitor the progress of applicable law and regulations. The Group Sustainability Team [PSQM] will update the estates if there are any changes in the legal requirements. Observation: 1)Since the POM is engage Auxiliary Police, the Police Act 1967 Seksyen 47-50 and Undang-Undang 2) Food Act 1983 has yet been listed on LOR to be monitor and reviewed by the management. 4.3.1.4 The management should assign a person responsible to monitor compliance and to track

and update the changes in regulatory requirements.

Kerdau POM -Sighted management appoint Mr Mohd Hafiz Lamaruddin, Manager KKS Kerdau date 10 July 2017 Function as follow: I. Calibration of test equipment. II. Daily implementation of the MOMS. III. Monitoring compliance and track update and changes in regulatory requirements. Criterion 2 Land used right


4.3.2.1

The management shall ensure that their oil palm milling activities do not diminish the land use rights of other users

Kerdau POM Land title indicates the lands belong to Sime Darby Plantation Sdn Bhd. Sighted a sample of land title: (Borang 11AK) H.S.(D)/H.S.(M) No: 5401 No lot: PT 575 Luas Lot: 4856.232 Ha As sighted area for POM is 7.02Ha. 4.3.2.2 The management shall provide documents showing legal ownership or lease, history of

land tenure and the actual use of the land.

Kerdau POM Land title indicates the lands belong to Austral Enterprises Berhad. Sighted a sample of land title: (Borang 11AK) H.S.(D)/H.S.(M) No: 5401 No lot: PT 575 Luas Lot: 4856.232 Ha As sighted the area for POM is 7.02Ha.



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4.3.2.3 Legal perimeter boundary markers should be clearly demarcated and visibly maintained on the ground where practicable.

Kerdau POM Sighted the mill boundary markers by the fencing surrounding the mill area

4.3.2.4 Where there are, or have been, disputes, documented proof of legal acquisition of land title and fair compensation that have been or are being made to previous owners and occupants; shall be made available and that these should have been accepted with free prior informed consent (FPIC).

As to date, no land disputes issue been recorded.

Criterion 3 Customary rights


4.3.3.1

Where lands are encumbered by customary rights, the company shall demonstrate that these rights are understood and are not being threatened or reduced.

No customary rights

4.3.3.2

Maps of an appropriate scale showing extent of recognized customary rights shall be made available

No customary rights

4.3.3.3 Negotiation and FPIC shall be recorded and copies of negotiated agreements should be made available.

No customary rights

P4: Social responsibility, health, safety and employment condition

Criterion 1 Social impact Assessment (SIA)


4.4.1.1

Social impacts should be identified and plans are implemented to mitigate the negative impacts and promote the positive ones

Social Impact Assessment has been conducted by the team lead by Social & Environment Projects Unit PSQM Department. Assessment date 11th-16 January 2016. There are sighted a few feedbacks from Local communities, sample below: a) Workers suggested Management to repair some of the nonfunctioning street lights, particularly at housing area road junctions and route from the Mill to the housing compound to avoid unwanted incidents. b) for workers stationed at boiler and sterilizer area, they proposed Management to purchase a more quality safety shoes as the one provided now could not withstand their work environment/condition. c) School bus for worker’s children : Parents requested management to provide transportation for their children to go to school. School representative voiced out the sane concerns as Mill children are unable to participate in some of school programs due to transportation issues Internal and External stakeholder meeting has been conducted accordingly latest by 27/11/2018. Sighted the Management Plan on Social Impact Assessment FY 2018, dated 27/11/2018. Seen the area






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of concern, action plan, person in-charge and date of completion.

Criterion 2 Complaints and grievances


4.4.2.1

A system for dealing with complaints and grievances shall be established and documented

Internal and external communication procedure was available. Sighted the complaint book at the office lobby. No complaint from stakeholders at this time of review. Sighted the Buku Laporan Kerosakan Rumah Pekerja Most of the issues are regarding with the pipe condition at the housing area.- all issues were handle properly.

4.4.2.2 The system shall be able to resolve disputes in an effective, timely and appropriate manner that is accepted by all parties.

Acknowledgement of the decision by both parties in complaints and grievances procedure. Sighted respond to the complaint were stated in the procedure will takes within 24 month

4.4.2.3 A complaint form should be made available at the premises, where employees and affected stakeholders can make a complaint.

Complaint book are sighted in the office lobby. KKS Kerdau Internal and External Complaint Logbook.

4.4.2.4 Employees and the surrounding communities should be made aware that complaints or suggestions can be made any time

All stakeholders were freely to write their complaint the mill management thru complaint book and submit the issues. The communities surrounding was aware with the complaint procedure and explanation was done during the stakeholder consultation and most of the mill workers are from the local communities

4.4.2.5 Complaints and resolutions for the last 24 months shall be documented and made available to affected stakeholders upon request.

Sighted the record of complaint were maintained since 2013 until today. As at year 2018 no complaint receive from the relevant stakeholder.

Criterion 3 Commitment to contribute to local sustainable development


4.4.3.1 Palm oil mill should contribute to local development in consultation with the local communities. Where the mills in an integral part of plantation, such contribution to local community development may be regarded as a joint effort by the mill and the plantation.

Sighted record of CSR activity for 2018 are available. Example; 1. Donation to Surrounding housing area for gotong-royong activites date on 15/10-19/11 2018. 2. Distibute black soil to Balai Polis Kerdau date on 8 Sept 2018.




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Criterion 4 Employees safety and health


4.4.4.1

An occupational safety and health policy and plan shall be documented, effectively communicated and implemented

Occupational Safety Policy sighted in document dated on January 2015. ESH Plan for FY2018/2019.That include in few area as example: 12 Area. 1. ESH Risk management which include following activities such as: I. Review of ESH M-Plan, Objective, Target, Program & Performance II. HIRADC Review III. Review of ESH related contracts 2. ESH Structure such as: I. Appoint of ESH Committee II. ESHC Meeting III. ESHC Meeting 3. Incident reporting such as: I. Internal Notification Report (INR Submission) II. JKKP 6/7 Submission III. JKKP 8 Submission 4. Health and Hygiene monitoring such as: I. Inspection by AMO at crèche and linesite II. Fogging at line site and Staff Compound III. Gotong Royong 5. Awareness & Competency Training such as I. Review of TNA and Competency Requirements II. Permit to Work Training III. Fire Drill and Fire Fighting Training IV. Competent First Aider Training V. First Aid Awareness Training- All workers and Linesite VI. Legal and Compliance Training VII. Chemical Safety Training VIII. HIRARC Training IX. Contractor Management Training 4.4.4.2 The occupational safety and health plan shall cover the following:

a) A safety and health policy, which is communicated and implemented

a) OSH Policy date on January 2015. •Communication on the Policy sighted in document Training plan and ESH Plan. •HIRARC has been conducted based working station example Laboratory: I. Conducting Analysis II. Collecting boiler water sample III. Collecting press cake sample IV. Collecting fiber cyclone airlock sample Water Treatment Plant: I. Inspection and maintenance of pump at catchment pond II. Cleaning of UF pre filter III. Walking to pump house Effluent Treatment Plant I. Disposal at EFB yard II. Handling spillage using hand III. Inspect pipeline leakage OSH Meeting has been conducted every 3 months, Last conducted in 26/09/2018. Verified the meeting agenda and list of attendance. b) The risks of all operations shall be assessed and documented

Verified the HIRARC for mill operation such as laboratory, loading ramp, sterilizer, threshing etc. The HIRARC was reviewed on 17/11/2018 for 4 areas which is; HIRARC has been conducted based working station example Laboratory: V. Conducting Analysis VI. Collecting boiler water sample VII. Collecting press cake sample VIII. Collecting fiber cyclone airlock sample Water Treatment Plant: IV. Inspection and maintenance of pump at catchment pond V. Cleaning of UF pre filter



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VI. Walking to pump house Effluent Treatment Plant IV. Disposal at EFB yard V. Handling spillage using hand VI. Inspect pipeline leakage

c) An awareness and training programme which includes the following requirements for employees exposed to pesticides: i) all employees involved shall be adequately trained on safe working practices; and ii) all precautions attached to products shall be properly observed and applied. Sighted the relevant awareness training had been included in the ESH program for year 2017/18. Sighted training for Chemical Handling/ Boiler Water/ Water Treatement Training had been conducted dated on 13/08/2018 – Chemical Handling conducted by chemical supplier named Tetrachem Enviro Sdn BHd. Seen the attendance list. ii. Sighted MSDS and Chemical handling procedure were in place at the Chemical store..

d) The management shall provide the appropriate personal protective equipment (PPE) at the place of work to cover all potentially hazardous operations as identified in the risk assessment and control such as Hazard Identification, Risk Assessment and Risk Control (HIRARC).

Record for PPE Distribution are available. All potential area has been identified according to the HIRARC such as I. Leather Hand Glove II. Cotton Hand Glove III. Ear Plug IV. Safety Helmet V. Mask

e) The management shall establish Standard Operating Procedure for handling of chemicals to ensure proper and safe handling and storage in accordance to Occupational Safety Health (Classification Packaging and Labeling) Regulation 1997 and Occupational Safety Health (Use and Standard of Exposure of Chemical Hazardous to Health) Regulation 2000.

Verified document on procedure Chemical Safety Management. Sighted during site visit at chemical store the pictorial work instruction for chemical handling and SDS were in place. However, spillage of chemical for water treatment was found during the site inspection at chemical storage and the door of chemical store was improperly lock which is could be dangerous to surrounding workers.

f) The management shall appoint responsible person(s) for workers' safety and health. The appointed person(s) of trust must have knowledge and access to latest national regulations and collective agreements. Verified the safety and health committee organization chart and noted the secretary of the OSH Committee for KKS Kerdau 2018/2019 will responsible for any safety issue for the company. Sighted the appointment letter for: OSH Secetary : En Roziman Bin Ismail date 26.09.2018 Employer Represantative: En Juwaini Bin Ghazali date 28.03.2018 g) The management shall conduct regular two-way communication with their employees where issues affecting their business such as employee's health, safety and welfare are discussed openly. Records from such meetings are kept and the concerns of the employees and any remedial actions taken are recorded.

Safety and health committee are available. That has been conducted quarterly basis as per OSHA 1994.Last conducted in 26/09/2018. Verified the meeting agenda and list of attendance.

h) Accident and emergency procedures shall exist and instructions shall be clearly understood by all employees.

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Emergency preparedness and response procedure are available.

i) Employees trained in First Aid should be present at all field operations. A First Aid Kit equipped with approved contents should be available at each worksite

Sighted the first aid training certificate conducted by Emergency Responder Academy Sdn Bhd on 22/2/2018. Total participant who attend the training is 4 (involves laboratory, electrical man, mandore etc). Seen the certificate of training for: I. Nur Adlina Binti Bahktiar. II. Muhammad Shahrin Bin Shaari III. Mohd Suhardi Bin Adnan (Laboratory) IV. Shaari Bin Salleh j) Records shall be kept of all accidents and be reviewed periodically at quarterly intervals.

There are no accident has been reported in 2017-2018.

Criterion 5 Employment conditions


4.4.5.1 The management shall establish policy on good social practices regarding human rights in respect of industrial harmony. The policy shall be signed by the top management and effectively communicated to the employees

Sighted management established Social Policy and gender Policy dated November 2015 and approved by MD. The policy content included below: a) comply with all labor law and regulation b) Implement fair and reasonable working contract and requirement c) To respect the employees’ rights to associate and join unions d) To provide reasonable wages that meet living requirement Communication of the policy sighted done by display at the notice board, briefing on policy to the stakeholder during the stakeholder meeting. 4.4.5.2 The management shall not engage in or support discriminatory practices and shall provide

equal opportunity and treatment regardless of race, colour, sex, religion, political opinion, nationality, social origin or any other distinguishing characteristics.

Refer to Social Policy and Gender Policy had mentioned no discrimination on race, gender, nationality, religion and political view. The company seek to maintain a workplace free from discrimination.

4.4.5.3 Management shall ensure that employees’ pay and conditions meet legal or industry minimum standards and as per agreed Collective Agreements. The living wage should be sufficient to meet basic needs and provide some discretionary income based on minimum wage.

KERDAU POM Verified the employee pay slip and found the calculation of the OT and basic salary was complying with the minimum standards. Samples below; I) Zaidin A/L Don No Employee: 0000052228 Gross Pay: RM1364.10 II) Mohamad Nong Zeri Bin Yusof No Employee: 0000023374

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Gross Pay: RM1170.86 III) Muhammad Ali No Employee: 0000145158 Gross Pay: RM1725.06 4.4.5.4 Management should ensure employees of contractors are paid based on legal or industry

minimum standards according to the employment contract agreed between the contractor and his employee

Verified the contract agreement and found sufficient and the payment salary of contractor employee were according minimum wages standard requirement. Samples of pay slips workers of contractors: I) Name: Sorib Oct 2018 Gross Pay: RM1211.00 Nov 2018: Gross Pay: RM2217.00

4.4.5.5 The management shall establish records that provide an accurate overview of the employees (including seasonal workers and subcontracted workers on the premises). The records should contain full names, gender, date of birth, date of entry, a job description, wage and the period of employment.

Verified the list of the employee data from Mill & Foreign Workers Particular were recorded in the system SAP and sighted the data contain name, gender, date of birth, date of entry, job description and wage rate.

4.4.5.6 All employees shall be provided with fair contracts that have been signed by both employee and employer. A copy of employment contract is available for each and every employee indicated in the employment records

KERDAU POM Samples of workers contracts as per below: Name: Amani Passport No: AT914219 Sighted Letter of Emplyoment Extension Year 2019 date of sign 2 June 2018. 4.4.5.7 The management shall establish a time recording system that makes working hours and

overtime transparent for both employees and employer.

Time records of employee is based on the Punch Card and the salary calculation by System SAP. Verified the salary calculation as per 4.4.5.3 and found accurate with the system calculation.

4.4.5.8 The working hours and breaks of each individual employee as indicated in the time records shall comply with legal regulations and collective agreements. Overtime shall be mutually agreed and shall always be compensated at the rate applicable and shall meet the applicable legal requirement

Verified the record of working hours were generated through punch card and be manually key by the clerk in to the SAP system. Verified records of payslip of employee , the payment of OT were as per employment act and collective agreement.

4.4.5.9 Wages and overtime payment documented on the pay slips shall be in line with legal regulations and collective agreements

Verified the pay slip and punch card working time records and found the calculation is sufficient as per legal regulation.

4.4.5.10 Other forms of social benefits should be offered by the employer to employees, their families or the community such as incentives for good work performance, bonus payment, professional development, medical care and health provisions

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Refer to employment contract as below: Section 5: Housing provided free by employer. Section 12: Employer will provide the healthcare facility and provide medical benefit to the employee Section 11: Foreign Workers Compensation Scheme Policy provided by the Employer Deceased in the event of any employee dies in the cause of his employment

4.4.5.11 In cases where on-site living quarters are provided, these quarters shall be habitable and have basic amenities and facilities.

Site visit at the workers' quarters and found all the basic amenities and facilities was provided sufficiently such as electricity and fresh water. Noted the employee quarters for mill and estate are located in same area. However the mill quarter managed by POM management itself.

4.4.5.12 The management shall establish a policy and provide guidelines to prevent all forms of sexual harassment and violence at the workplace

POM establish the gender Policy dated November 2018 and the guideline are as per Gender committee handbook first edition year 2014.

4.4.5.13 The management shall respect the right of all employees to form or join trade union and allow workers own representative(s) to facilitate collective bargaining in accordance with applicable laws and regulations. Employees shall be given the freedom to join a trade union relevant to the industry or to organize themselves for collective bargaining. Employees shall have the right to organize and negotiate their work conditions. Employees exercising this right should not be discriminated against or suffer repercussions.

Palm Oil Mill show the respect the right of employees to join the trade union as per Social Policy dated November 2018 and verified total employees who join trade union under NUPW (14 employee) and AMESU (13 employee). Sighted the records of latest minutes meeting of NUPW dated on 02/04/2018

4.4.5.14 Children and young persons shall not be employed or exploited. The minimum age shall comply with local, state and national legislation. Work by children and young persons is acceptable on family farms, under adult supervision, and when not interfering with their education. They shall not be exposed to hazardous working conditions.

Verified the in the employee recorded in the SAP system NIL under age workers work in the premise.

Criterion 6 Training and competency


4.5.6.1 All employees, contractors and relevant smallholders are appropriately trained. A training programme (appropriate to the scale of the organization) that includes regular assessment of training needs and documentation, including records of training shall be kept.

KERDAU POM Verified the Training Matrix for all employee for year 2018 and listed Training requirement for mill as per sample below: a) OSH Act & regulations awareness b) SOP for all mill sections c) RSPO supply chain certification standard training date 6/12/2018 d) New workers Training date on 7/12/2018 e) MSPO Awareness to Contractors date on 6/12/2018 4.5.6.2 Training needs of individual employees shall be identified prior to the planning and

implementation of the training programmes in order to provide the specific skill and competency required to all employees based on their job description.


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KERDAU POM The POM has established a TNA for all workers based on their works instruction as sighted on KKS Kerdau Training Need Analysis and Training Matrix 2018/2019. Verified the Training Record and attendance list as below: a) SOP Training (reception, oil room, press, kernel plant) dated 03/10/2018 conducted mill supervisor. b) Induction Training for new workers (COBC, Whistle Blowing training, Decanter Training & SDPB Policies) dated 06/12/2018 conducted by Q&C Engineer. c) MSPO Awareness training dated 06/12/2018 d) SOP for all mill sections e) RSPO supply chain certification standard training date 6/12/2018 . 4.4.6.3 A continuous training programme should be planned and implemented to ensure that all

employees are well trained in their job function and responsibility, in accordance to the documented training procedure.

KERDAU POM Verified the KKS Kerdau Training Need Analysis & Training Matrix for Year 2018&2019 and listed 27 planned training such as Act & Regulation, SOP Training, MSPO Awareness, RSPO SCCS Training and etc.

P5 Environment, natural resources, biodiversity and ecosystem services

Criterion 1 Environmental management plan


4.5.1.1 An environmental policy and management plan in compliance with the relevant country and state environmental laws shall be developed, effectively communicated and implemented.

Sighted management establish Environmental Policy dated January 2015 and approved by managing director Datuk Franky Anthony Das. As sighted the environmental plan for Kerdau POM finanial year 2018/2019 is available. the plan includes the waste management, water management etc.

4.5.1.2

The environmental management plan shall cover the following: a) An environmental policy and objectives. b) The aspects and impacts analysis of all operations

Kerdau POM The environmental policies is available. The objectives of the policy include: 1) Environmental management policy: - Complying with the statutory, legal and other regulatory requirement. - Establishing, maintaining and continually improving sustainability plantation management. 2) Environment and biodiversity policy - Complying with all statury and regulatory requirement is matters concerning the environmental and biodiversity. - eliminating any potential advers effects on the environmental and biodiverity. POM KKS Kerdau has establish the Environmental Impact Assessment and identified the aspect & impact of mill operation to the environment. Sample of the impact as below: a) Station: Laboratory Activity: Operation laboratory Env. Aspect: Waste disposal Impact: Create land contamination and community impact, Reduce impact of business impact. b) Station: Effluent Treatment Plant Activity: Treatment of effluent. Env. Aspect: Release to air Impact: Create global warning, air pollution, unpleasant working environment impact. c) Station: Clarification Activity: Maintenance of sludge pit pumps and pipes Env. Aspect: spillage



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Impact: Create impact Land contamination and unpleasant working environment.

4.5.1.3 An environmental improvement plan to mitigate the negative impacts and to promote the positive ones, shall be developed, effectively implemented and monitored.

POM establish the Continual Improvement in Environment Management & Improvement Plan stated in waste management plan, environmental, safety and health, identification & management od waste water is available. The plan was approved by the mill manager. sample of the program as per below: i. Air emission management ii. scheduled waste management The progress of monitoring status of implemetation were still in progress. Pollutions preventive management plan FY 2018/19were cover pollution source contribute area as per sample below : i. workshop ii. linesite iii. genset iv. transport etc 4.5.1.4 A programme to promote the positive impacts should be included in the continual

improvement plan

As per 4.5.1.3

4.5.1.5 An awareness and training programme shall be established and implemented to ensure that all employees understand the policy and objectives of the environmental management and improvement plans and are working towards achieving the objectives.

Refer to the Training Record and sighted sufficient training related to environment and sample as below: 1) Chemical Handling/ Boiler water and water tratment training dated on 15 Aug 2018. The training was attend by 14 staffs and workers. 2) Schaduled waste training dated on 6th Dis 2018. The training was conducted by Mr Roziman Ismail and attended by 36 staffs and workers.

4.5.1.6 Management shall organize regular meetings with employees where their concerns about environmental quality are discussed

Observed POM Kerdau has conducted few meeting related environmental meeting as per required by DOE for GSR (Guide-Self Regulation). Meeting such as: 1. Environmental Performance Monitoring Committee (EPMC) meeting - the latest meeting was held on 26 Sept 2018. 2. The EPMC Organization chart for FY 2018/19 is available and chaired by Tuan Mohamad Shokkeri, Mill manager. Criterion 2 Efficiency of energy use and use of renewable energy


4.5.2.1 Consumption of non-renewable energy shall be optimized and closely monitored by establishing baseline values and trends shall be observed within an appropriate timeframe. There should be a plan to assess the usage of non-renewable energy including fossil fuel, electricity and energy efficiency in the operations over the base period.


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Kerdau POM monitored the Diesel usage by record in Summary of Diesel Usage use per ton of FFB for year 2018 (July till Oct 18, ) sighted the usage of diesel were high on September due to high crop. Sighted for TNB usage (government electricity) were highly used when the crop processing is low and verified usage were high on month of August 2018 due low crop.

4.5.2.2 Palm oil millers shall estimate the direct usage of non-renewable energy for their operations, including fossil fuel, and electricity to determine energy efficiency of their operations.

The estimation yearly has been budgeted in Budget Procession Expenditure for Mill electricity stated as budget vs actual.

4.5.2.3 The use of renewable energy should be applied where possible

Sighted the renewable energy were fibre and shel kernel used in the turbine. The more of process crop will effected in high usage of turbine. Sighted record of monitoring of turbine use per ton FFB shown in the month of October the mill had processed highed crop due to peak crop season from the estate.

Criterion 3 Waste management and disposal Indicator Requirement Findings 4.5.3.1 All waste products and sources of pollution shall be identified and documented.

POM listed all the SW generated as per List Of Waste Produced By POM and listed the SW such as SW 305, SW 306, SW 409, SW 410 and domestic waste such as rubbish, Industrial waste such as POME, EFB, scrap metal. The SW been registered online into the eswiss.doe.gov.my.

4.5.3.2 A waste management plan to avoid or reduce pollution shall be developed and implemented. The waste management plan should include measures for: a) Identifying and monitoring sources of waste and pollution. b) Improving the efficiency of resource utilization and recycling of potential wastes as nutrients or converting them into value-added by-products.

POM establish the Waste Management Plan for FY 2017/2018, the detail of waste management plan such type of waste, S.W. code, item description, location, action to be taken, PIC. Sample taken as below; a) Spent lubricant Oil and hydraulic oil POM establish the Waste Management Plan for FY 2017/2018, the detail of waste management plan such type of waste, S.W. code, item description, location, action to be taken, PIC. The plan was approved by the mill manager. Sample taken as below; a) Spent lubricant Oil and hydraulic oil location: scheduled waste store Action to be taken - collect & record amount of relevant scheduled waste, empty containers are stored and used for storage of waste oil, etc. b) Rubbish Location: linesite, office, workshop, store, shop. Action to be taken: Collect recyclable materials (paper, glass, plastic) c) Sewage Location: Mill/Linesite Action to be taken: Provide adequate washrooms / toilet at mill and linesite and arrange for sewage disposal by local authority when necessary. 4.5.3.3 The management shall establish Standard Operating Procedure for handling of used

chemicals that are classified under Environment Quality Regulations (Scheduled Waste) 2005, Environmental Quality Act, 1974 to ensure proper and safe handling, storage and disposal.


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POM establish the SOP Scheduled waste handling and been located at schedule wate store.

4.5.3.4 Domestic waste should be disposed as such to minimize the risk of contamination of the environment and watercourses.

The domestic waste record is available. The domestic waste was conducted by Enek Bin Luman as contractor.

Criterion 4 Reduction of pollution and emission


4.5..4.1 An assessment of all polluting activities shall be conducted, including greenhouse gas emissions, scheduled wastes, solid wastes and effluent

Sighted the GHG assessment result shown the summary emmision for POM Kerdau ; tC02e/t Product - CPO - 1.28 - PK - 1.28 - PKO - 0 - PKE - 0 Mill emission contibute for SOU Bukit Puteri is 18.71%

4.5.4.2 An action plan to reduce identified significant pollutants and emissions shall be established and implemented

As per 4.5.3.2

4.5.4.3 Palm oil mill effluent (POME) shall be treated to ensure compliance with standards as stipulated in the relevant Environmental Quality (Prescribed Premises) (Crude Palm Oil) Regulations 1977. POME discharge limits and method should be in accordance with the respective state and national policies and regulations.

Verified through Jadual Pematuhan DOE the parameter level of POME discharges were according to specification of DOE. Based on the DOE inspection on 17/8/2018, the flow meter was not working properly. However, the flow meter has been repared by the mill management.

Criterion 5 Natural water resources


4.5.7.1 The management shall establish a water management plan to maintain the quality and availability of natural water resources (surface and ground water). The water management plan may include:

The Water management Plan has been established. The water source came from river from nearby estate. This water is used for mill and boiler. Sighted the records of Water Treatment Usage for the year 2018. The last record shown for the October usage is 23529m3. a) Assessment of water usage and sources of supply.

The water usage for Plam Oil Mill FY 2018/2019 is available. The record is based on monthly basis. As recorded: July 2018 - 25111.00 m3 Aug 2018 - 18221 m3 Sept 2018 - 23648 m3 Oct 2018 - 32299 m3 Nov 2018 - 23259 m3



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b) Monitoring of outgoing water which may have negative impacts into the natural waterways at a frequency that reflects the estate’s current activities

POM do the assessment of the polluting by done the final discharge water quality analysis and analyzed by Sime Darby Research Sdn Bhd and the result as below: a) Final Discharge Effluent dated 10/10/2018 - BOD : 16mg/L

c) Ways to optimize water and nutrient usage to reduce wastage (e.g. having in place systems for re-use, night application, maintenance of equipment to reduce leakage, collection of rainwater, etc.).

Sighted the record of monthly monitoring of water usage for mill operation and at workers quarters. refer to clause 4.5.7.1 According to the audittee every workers quarters were provide treated water from the water cachment.

4.5.5.2 Where open discharge of POME into water course is practiced, mills should undertake to gradually phase it out in accordance to the applicable state or national regulations.

Verified the evidence as per mention in clause 4.5.7.1 (b)

P6: Best Practices

Criterion 1 Mill management


4.6.1.1 Standard operating procedures shall be appropriately documented and consistently implemented and monitored.

POM establish the MQMS for mill operation SOP as a guideline for milling operation.ver 0 established on year 2008 dated on 1/11/2008

4.6.1.2 All palm oil mills shall implement best practices.

Verified the work stations at POM and sample as below: 1) Boiler Station a) Establish the Work Instruction: Continious Steriliser dated 1/11/2008. b) Verified the Check Boiler Multicyclone Checklist and found sufficient with updated the check sheet for every day for Pressure Drop, Check Stack, Fan Amp etc. c) Verified the CeMS for month of Nov 2018. d) verified the daily production report which stated as at todate OER achievement 20.66%. Criterion 2 Economic and financial viability plan


4.6.2.1 A documented business or management plan shall be established to demonstrate attention to economic and financial viability through long-term management planning.

Verified the Bukit Puteri Palm Oil Mill year 2018 budget(five years Budget) as below: a) Budget Processing Expenditure For Year 2018 consist of budget for fruit reception, threshing station, nut & kernel plant, boiler house etc. b) Budget Capital Expenditure (CAPEX) consist budget for kernel bunker, effluent project, fuel conveyor etc. Sighted as at todate the mill production actual vs budget can be monitore through the SAP system. Below are the detail:




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i. Production - actual 20,395.011 mt vs 27622.61 mt ( deficit 26%) ii. OER - actual todate year 20.66 vs budget 21.06

Criterion 3 Transparent and fair price dealing


6.6.3.1 Pricing mechanisms for the products and other services shall be documented and effectively implemented.

The pricing mechanisms will be based on the MPOB Monthly Prices and the prices will be announce by issue the MEMO by monthly basis. Noted the prices will follow MOPB rate.. Verified the price for month of November as per memo is RM18.27 (Harga 1% Kadar Perahan Minyak).

6.6.3.2 All contracts shall be fair, legal and transparent and agreed payments shall be made in a timely manner

Noted the agreement between the contractors and mill were stated in the contract form and detail such as job description, price, compliace to legal etc. Sample evidence taken : i.Contract form - doc no : 4300446010 dated on 28/11/2018 , contractor name : SS Naveen Engineering Job description : Labour for repair maintenance work. Criterion 4 Contractor

Indicator 1 Requirement Findings

4.6.4.1 In case of the engagement of contractors, they shall be made to understand the MSPO

As to date, the briefing regarding the MSPO was done during the Stakeholder Meeting dated 1/10/2018 and among the contractors .

4.6.4.2 The management shall provide evidence of agreed contracts with the contractor.

Verified the contract form for any job awarded to the contractor , sighted had a signature of agreement by the contractors.

4.6.4.3 The management shall accept MSPO approved auditors to verify assessments through a physical inspection if required

Not applicable

Observation for Improvement Details

4.4.4.2 (B) - Observed during site visit Oxy acetelyne cylinder were place without chain or proper holder. Advice management to review HIRARCH on handling Oxy acetelyne due to it may be risk exposure if the proper holder were not been used. 4.3.1.3


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- Obs – Since the mill were engage with the auxiliary police the police Act 1967 need to be listed in the legal register. - Obs – Notice there is canteen inside the mill compound however the Food Safety Act 1983 were not in the legal register.

During the assessment nil nonconformities were identified.

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APPENDIX 1 ATTENDANCE LIST

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Estates Maps

Documents

Date: 07 October 2013cciglobe.com/files/SDKPOMS11_SAV.pdfCCI-QP-07-07A 1 Assessment Report Date: 12 Decemberto 2018 Company name Sime Darby Plantations Sdn. Bhd. Kerdau Palm Oil Mill