MSPO INITIAL CERTIFICATION SUMMARY REPORTunder the Standards MSPO MS2530-3:2013 for Oil Palm...

INITIAL CERTIFICATION AUDIT REPORT

REF: BQAS/SPSB/007/08/19

SARE PLANTATION SDN BHD

MSPO MS 2530-3:2013

August, 2019

1

STANDARD:

MS2530-3:2013 (Part 3)

General Principles for Oil Palm Plantations and Organized

Smallholders

TYPE OF

CERTIFICATION:

Individual Certification

ORGANIZATION:

SARE PLANTATION SDN BHD [783210-M]

Main Office Address:

No 45, 1st Floor, Jalan Masjid Lama, 96100, Sarikei, Sarawak

Phone/Fax No:

Tel: 084 655 088

Fax: 084 655088

Plantation Site Address:

NCR, Ulu Sg Sentebu, Sentubu 3km, Jalan Sare, 96100,

Sarikei Sarawak.

PROJECT NO:

BQAS/SPSB/007/08/19

August, 2019

CERTIFICATION BODY:

BQAS Certification (M) Sdn Bhd (11179994-x)

Sublot 6, 2nd Floor, Block A, Kings’ Center, Simpang Tiga,

93350, Kuching, Sarawak.

Tel:

Mobile:

Email:

Website:

+6 082 572 043

+6 017 814 1112

[email protected]

www.bqas.com.my

Documented by:

Wilfred S Landong

Lead Auditor

Certified by:

Maxwell S Landong

25 08 2019

Certificate issued on:

01 09 2019

Validity: 01 09 2019 to 31 08 2019

Disclaimer:

This Report (inclusive of enclosures & attachments) had been prepared for the exclusive use and benefits of the addressee(s) and

solely for the purpose for which it was intended. Unless BQAS provide prior written consent, no part of this report should be

reproduced, distributed or communicated to any third party. BQAS would not accept liability if this report is used for an alternative

purpose from which it was intended, nor would we owe any duty of care to any third party in respect of this Report.

MSPO INITIAL CERTIFICATION SUMMARY REPORT

http://www.bqas.com.my/




MSPO MS 2530-3:2013

August, 2019

Page 2 of 56 BQAS Certification (M) Sdn Bhd All aspects of the Audit are Confidential July 2019

TABLE OF CONTENTS

NO DESCRIPTION PAGES

EXECUTIVE SUMMARY 3

1. INTRODUCTION 4

1.1 Information: Certification Assessment 4

1.2 Information: Certified Entity 4

2. THE AUDIT TEAM 5-6

3. AUDIT METHODOLOGY 6-7

4. AUDIT PLAN 7-8

5. AUDIT PROCESS 9

6. STAGE 1 AUDIT

6.0 Stage 1 Audit Report 10-19

6.1 Summary of Findings/Action Taken/Closure 19

7. STAGE 2 AUDIT – MAIN ASSESSMENT

7.1 Basic Information 20

7.2 Stage 2: Main Assessment Report 21-43

7.3 Summary of Findings 44-46

7.4 Lead Auditor Remarks 46

7.5 Corrective Action Reports [CAR] / Closures 47-54

8. AUDIT CONCLUSION & RECOMMENDATION 55

9. ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY &

CONFIRMATION OF AUDIT FINDINGS

55

10. CERTIFICATION RECOMMENDATIONS [CERTIFIER] 55

11. DATE OF 1ST YEAR SURVEILLANCE AUDIT

ATTACHMENTS:

SARE PLANTATION MAPS 56




MSPO MS 2530-3:2013

August, 2019


EXECUTIVE SUMMARY

This is an Initial Certification Audit & scope is Individual Certification of Sare Plantation Sdn Bhd [SPSB]

under the Standards MSPO MS2530-3:2013 for Oil Palm Plantations & Organized Smallholders

Sare Plantation Sdn Bhd [SPSB] main office is located at No 45, 1st Floor, Jalan Masjid Lama, 96100, Sarikei,

Sarawak.

The Plantation site is located at Geo-coordinates N2°04’26.0” E111°27’47.3”; along Jalan Paoh-Sari; with

address @ NCR, Ulu Sg Sentebu, Sentubu 3km, Jalan Sare, 96100, Sarikei Sarawak; approximately 15

kilometers from Sarikei Town.

Established in 2007, the Plantation spanned a total certified area of 402.35 hectares of lowland with

undulating terrain. SPSB employed a total headcount of 38 fulltime employees [staff & general workers].

Plantation lands are owned by a local native landowner; occupation & use of land by SPSB is vide

documented legal Land Development [Rental] Agreement with tenure of 50 years effective from 27

January 2008.

The assessment method used follows principles of 3P (Paper, Practice & People).

This certification assessment is a sampling process where management systems effectiveness & efficiency

are confirmed via an Audit Trail that the Auditor established to make an accurate conclusion.

Information & data were systematically gathered & documented from interviews [with a cross section

random sample of stakeholders], observations of process and activities, field audits & review of

documentations and records.

Assessments were done at both the Main Office in Sarikei and the Plantation/Site Office during both

Stage 1 & Stage 2 Audits.

Stage 1 Audit was conducted on 17 to 18 April 2019 & Stage 2 on 10 to 12 June 2019 respectively. 2

Auditors were assigned to do the Assessments; clocking a total of 10 Mandays to complete the Audits.

There were 8 Findings in Stage 1 Audit classified as AWF (acceptable with findings noted); in areas of

management system readiness, policy/policies documentation, legal register, procedures

documentation, management plan, boundary mapping & soil and topographic information.

The corrective action report (CAR) raised for these findings were closed out on 28 05 2019.

In Stage 2 Audit 8 OFI (opportunity for improvements) were recorded; in areas of Management

Commitment & Responsibility, Transparency of information & documents relevant to MSPO requirements,

Social Impact Assessment, Complaints & Grievances, Employees Safety & Health & Training &

Competency. The corrective action report (CAR) for these findings were closed out on 25 07 2019.

In both Audit Stages, dialogues and interviews were conducted with stakeholders [workers, local

communities, landowner, other land users] to gauge understanding of MSPO principles, applications &

its importance and relevance to sustainable growth and production of palm oil products.

Also assessed were their opinion & working relationship with SPSB Management and this was found to be

positive. Local communities were also allowed access and use of roads within the plantation

Plantation workers [mainly foreign] are remunerated well above minimum wage; and living conditions in

the Estate meet minimum requirements of health & safety regulations.

Available amenities in both estates include treated water, domestic waste collection & disposal,

electricity and telecommunication services.

The Audit team has conducted a rigorous assessment of SPSB and it is evidenced that it has complied &

conformed to MSPO2530-3:2013 Certification standards, conditions & requirements.

Conclusively, the Lead Auditor therefore, recommended that upon conclusion and closure of [OFI] of

Stage 2 Audit Sare Plantation Sdn Bhd be certified under MSPO Standards MS2530-3:2013.




MSPO MS 2530-3:2013

August, 2019


1. INTRODUCTION

Sare Plantation Sdn Bhd [established in 2007] is a company based in Sarikei, Sarawak; and located

approximately 15 kilometers from Sarikei Town. With yield of up to 32MT per hectare, SPSB had won

numerous Awards and recognition in the [500 hectares & below category] from MPOB consecutively

from 2013 to 2017.

This report presents the assessments, findings & recommendations on certification evaluation of SPSB

which is seeking certification under MSPO MS2530-3:2013.

This is an Initial Certification Audit to assess the entity’s preparedness, compliance & conformance to

MSPO Standards MS2530-3:2013 (Part 3: Requirements for Oil Palm Plantations & Organized

Smallholders)

1.1. INFORMATION: CERTIFICATION ASSESSMENT

Type of Assessment: Initial Certification Audit

Scope of MSPO Certification: Palm Oil Plantation Certified Area: 402.35HC

MSPO Standard: MS2530-3:2013

1.2. INFORMATION: CERTIFIED ENTITY

Company Name: Sare Plantation Sdn Bhd Registration No 783210-M

Address: No 45, 1st Floor, Jalan Masjid Lama, 96100 Sarikei, Sarawak.

Site Name: Sare Plantation Sdn Bhd (located 15 km from Sarikei Town)

Address: Ulu Sungai Sentebu, Sentebu 3 km, Jalan Sare, 96100, Sarikei, Sarawak

Management Contact details:

Name Job Title Mobile Telephone Email

Wong Hua Ting Managing Director 013 814 0319 084 655 088 [email protected]

Su Si Chieng Executive 016 851 0098 084 655 088 [email protected]

No of Employees Local 12 Foreign 26 Total 38

MPOB License No: 5390 1100 2000 Expiry Date: 30 04 2020

Scope of Activity: Menjual & Mengalih FFB#

Date of Establishment 02 08 2007 Geo-Coordinates N2°04’26.0” E111°27’47.3”

Certified Area: 402.35 HA Planted Area 382.38HA Conserved Area 19.97 HA

FFB Production (actual) 2018 12,319.68 MT FFB Production (estimate) 2019 11,425.40 MT

Sources of FFB Own estate Main FFB purchaser Manis Oil Sdn Bhd

No of Planting Blocks 39 blocks No of Palm trees 49,373 trees

Palm Species Golden Hope 500, Felda Yam Gambae Age Range of Palm

Trees

6 to 12 years

Land Status: Ownership ☐ Own Land ☒ Rented ☐ Joint Venture

Other Sustainability Certification: Nil

2. THE AUDIT TEAM

mailto:[email protected]





MSPO MS 2530-3:2013

August, 2019


Audit Stage Name: Role

Stage 1 Wilfred S Landong Lead Auditor

Duke Ladin Auditor in Training

Stage 2 Wilfred S Landong Lead Auditor


A. Wilfred S Landong Lead Auditor

Qualifications:

Advanced Dip in Business & Management, UK

Degree in Marketing, UK

Masters in Marketing, UK

Successfully completed MSPO Lead Auditor Course (Pioneer Group) 0n 30th January, 2015

Working Career & Experience:

Year ended Employer Highest Job

1980 Cigarette Importers & Distributor Area Executive

1990 Sebor Sarawak Sdn Bhd Divisional Manager

1997 Gillette (M) Sdn Bhd Country Manager

1999 Zuelling (M) Sdn Bhd Sales & Marketing Director

2002 TimeDotCom. Bhd Vice President

2012 Sarawak Forestry Corporation Sdn Bhd General Manager

Present BQAS Certification (M) Sdn Bhd Managing Director

Relevant MSPO Related Credentials:

Sarawak Forestry Corporation SB

Pioneer GM of Sarawak Forestry Corporation SB (SFC), a wholly owned Company of Sarawak

Government; responsible for formulating and implementing the Company’s organization

structure, policies, regulations, procedures etc. Custodian of accreditation & certification

related to management of Protected areas & Biodiversity conservation.

During tenure of office, Certification achieved included ISO9001 (2004), ISO14001(2004),

OHSAS1800 (2007)

Intimate knowledge of sustainable forestry management and regulatory requirements

enhanced a clear perspective & understanding of how palm oil industry should be managed

sustainably.

Highly conversant & knowledgeable on Sarawak Forests Ordinances, Wildlife Protection

Ordinance, Land Code, Native/NCR land laws; easily can relate and apply to governance and

implementation of MSPO Principles & guidelines.

BQAS Certification (M) SB




MSPO MS 2530-3:2013

August, 2019


As MD of BQAS responsible for the formulation & implementation of Quality Manual, Policies &

Procedures as required for Accreditation as Certified Body by Department of Standards

Malaysia (DSM) under ISO/IEC 17021-1.

Top management accountability & responsibility to ensure BQAS conformance & compliance

on operations, implementation & administration of MSPO MS2530:2013 as required by the owner

of the Standard (MPOCC).

B. Duke Ladin Auditor in Training

Qualifications

Bemidji State University, Bemidji, Minnesota, USA in 1999

Bachelor of Arts (Hons) in Management, Open University Malaysia [OUM] 2016

Successfully completed MSPO Auditor Course in February 2019

Working Career & Experience

Oil Palm Planter [MPOB License 4528 2700 1000 since 2009]

Contractor – Construction Company [2014-2017]

Project Manager [2007-2013]

Relevant MSPO Related Credentials:

As an Oil Palm Planter, highly conversant and experienced in operating Oil Palm Smallholding

Company

Practical experience in Palm oil Business & Business management practices.

3. AUDIT METHODOLOGY

This certification assessment is a SAMPLING process where management systems effectiveness &

efficiency are confirmed via an audit trail that the Auditor established to make an accurate

conclusion.

Information gathering

Data collection

Interviews

Observation of process & activities

Review of documentations & records

Site visits

Field inspections

Assessment method Paper

Assessing past implementations from records, reports of the

management system

Practice

Assessing current implementation from observing current

practices

People

Assessing future maintenance from interviewing personnel on

understanding & assessing competencies

Stage 1: Audit Findings Classification




MSPO MS 2530-3:2013

August, 2019


Term Meaning / Description

Acceptable Fulfill requirement of audited standard

Acceptable with findings

noted

Demonstrate conformity. There are, however, improvement

opportunity identified that will benefit the organization

Not acceptable Demonstrate absence or total breakdown of system to meet standard

requirement

Stage 2: Audit Findings Classification

Term Meaning Description

YES Compliance Fulfill requirement of audited standard

OFI Opportunity for improvements Demonstrate conformity. There are, however,

improvement opportunity identified that will

benefit the organization

NO (minor NC) Minor non conformity Non-compliance to standard requirements or

company’s SOP; or are issues that when

combined, jeopardized the functioning of the

system

NO (major NC) Major non conformity Demonstrate absence or total breakdown of

system to meet standard requirement, or a

number of minor NC against a clause of standard

requirements / at a particular area. Of last

assessment that are not effectively addressed will

be classified as major NC.

4. AUDIT PLAN

AUDIT SITES:

For both Stage 1 & Stage 2 the Audit Team performed assessments at:

Sare Plantation Sdn Bhd main office [documentations]

Plantation site office/field Audits

STAGE 1 AUDIT PROGRAM:

Date 17 to 18 04 2019 No of Auditors 2 No of Mandays 4

Day 1 Documentation Audit at Sare Plantation Office/Opening Meeting

Day 2 Plantation Site & Field Audit/ Stakeholders Consultation & interviews

Closing Meeting & Stage 1 Audit Report presentation




MSPO MS 2530-3:2013

August, 2019


Audit Parameters:

Basic information about the entity

Management system: scope & documentation

Evaluation of location/site specific conditions

Review understanding regarding requirements of the MSPO Standards (key performance,

processes, objectives)

Related statutory & regulatory aspects & compliance

Land status/legality

MSPO policies, procedures

Management Manual

Management Plan

Resources management (water/non-renewable energy use)

Determine preparedness for Stage 2 Audit

Fertilizers/Chemical/Schedule waste stores

Estate Office & Workers Quarters, Signages

Boundary Markers, Geo-coordinates, Buffer Zone, Riparian Reserves

Stakeholders interviews

STAGE 2 AUDIT PROGRAM:

Date 10th to 12th June 2019 No of Auditors 2 No of Mandays 6

Day 1 Documentation Audit at Sare Plantation Office/Opening Meeting

Day 2 Plantation Office Site & Field Audit/ Stakeholders Consultation & interviews

Day 4 Documentation Audit at Sare Plantation Office/Closing Meeting/Audit Report

Audit Parameters:

Evaluate implementation, including effectiveness of the management system

Information & evidence about conformity to all requirements

Performance monitoring, measuring, reporting

Reviewing against key performance objectives & targets

Performance as regards legal compliance

Operational control of the client’s process

Internal auditing & Management review

Management responsibilities for policies

Links between the normative requirements, policy

Competence of personnel

Customer specific requirements

Harvesting / collection of loose fruits / logistics & traceability of FFB

Use of PPE / Safety & Health training program

Revisit other points/areas of buffer zone, Riparian reserves, boundaries

Implementation of Policies & procedures at all stores (fertilizer, chemical, schedule waste

store)

Improvements to workers quarters – health & safety

Infrastructure / roads & drainage / natural water management

Continuous improvement plan & implementation

Implementation of Best practices

Implementation of environmental management plan

Stakeholders & workers interview




MSPO MS 2530-3:2013

August, 2019


5. AUDIT PROCESS

The Audit Process for both Stage 1 & 2 Assessments was programmed similarly as follows:

No Process Description / Activities

1 Public Notification Written notice to inform public on MSPO Audit is posted at

Plantation Office 1 month before Audit dates

↓

2 Audit Plan Auditee received 2 weeks before Audit dates

↓

3 Audit Day 1

Main Office, Sarikei

a. Opening Meeting

Participants:

Audit Team & Auditee Management

Agenda:

Audit Plan, Objectives, Assessment Method

b. Documentation Review

Management Systems, Policies, Procedures, MSPO Principles

1 to 6 documents etc.

↓

4 Audit Day 2

Sare Plantation Site / Office Audit

Stakeholders interviews, MSPO knowledge of Estate staffs,

Checks & verifications on Boundary, Buffer Zone, Riparian

Zone, Waste/scheduled waste management, Water

management, Water courses, Staff/workers housing &

amenities, Harvesting, Use of PPE, Stores, Workshop

Note:

For Stage 1 Audit, Day 2 include Closing Meeting and Stage

1 Audit Report Presentation

↓

5 Audit Day 3

[for Stage 2 only]

Main Office, Sarikei

a. Documentation Review [continuation from Day 1]

Management Systems, Policies, Procedures, MSPO Principles

1 to 6 documents etc.

b. Closing meeting

Participants:

Audit Team & Auditee Management

Agenda:

Report / Checklists: review, discuss & decide corrective &

forward action to be taken with Auditee




MSPO MS 2530-3:2013

August, 2019


6. STAGE 1 AUDIT MSPO MS2530-3:2013

MSPO Stage 1 Audit Report Reference No.: SP/AU/ST1/04/19

Standard(s): MS 2530-1 MS 2530-2 MS 2530-3 MS 2530-4

Other Standards and/or

Edition:

NIL

Organization:

Address:

City, State, Zip:

Country:


NO 45, 1ST FLOOR, JALAN MASJID LAMA, 96100, SARIKEI, SARAWAK

Organization Representative: MR WONG HUA TING

Stage 1 Audit Date: 17 04 2019 – 18 04 2019

Stage 2 Scheduled Date: To be decided

BQAS Audit Team:

Name Role

Wilfred Landong Lead Auditor


ACKNOWLEDGEMENT & DECLARATION

BQAS LEAD AUDITOR

WILFRED LANDONG

18 04 2019

COMPANY REPRESENTATIVE

MR WONG HUA TING

18 04 2019

This acknowledges the BQAS audit team’s visits to this location and the organizations receipt of the report. Distribution of this

report consists of the organization named above and parties names per contractual agreement. Additional distribution must be

authorized by the organization.

1. INFORMATION ABOUT THIS ORGANISATION

ORGANIZATION SARE PLANTATION SDN BHD

1 Site or Remote Location Site

2 Facility covered under this Audit Oil Palm Plantation

3 Primary Function of the Site Plantation/Organized Smallholders

4 Address NO 45, 1ST FLOOR, JALAN MASJID LAMA, 96100, SARIKEI, SARAWAK

5 Headcount Staffs 12 General Workers 26

6 Planned / Recommended Stage 2 Audit Mandays

7 FFB Production 2017: 12,972.55MT 2018: 12,319.68MT

SCOPE Lists the Scope of Registration for each applicable Standards

MPOB Registration No NO 5390 1100 2000

Scope of Registration MENJUAL DAN MENGALIH FFB#




MSPO MS 2530-3:2013

August, 2019


2. MANAGEMENT SYSTEM READINESS (GENERAL)

Was the review of the client’s status and

understanding regarding requirements of

the standard/ specification, in particular

with respect to the identification of key

performance or significant aspects,

processes, objectives and operation of the

management system was found to be

adequate?

Acceptable

Acceptable with findings noted

Unacceptable – recommend audit (Stage 2) to be delayed

Comments/Justification/Evidence:

Documentation in respect of MSPO General Principles 1-6 all in-order

& organized. MSPO training done on 06 03 19 & 21 03 19

The Top-Level Management System

Manual detailing justification for exclusions,

inclusion of or reference to documented

procedures for the management system,

and providing a description of the

interaction between processes?

Acceptable




Documented evidence Manual (Best Management Practices):

Circle Weeding, Drainage Water Management, Nutrient

Management, Planting, Road System, Census, Disease Control, Fresh

fruit bunch delivery, Harvesting, Rat control. Document approval 01

03 19.

Need to write Executive Summary & referenced to Best Practices

Manual

The policy is defined and appropriate to

the purpose of the organization?

Acceptable




Policies documented:

MSPO, Sexual Harassment, Good Social Practices, Environmental

Policy, Occupational health & Safety, Quality Policy. Signed by MD

on 01 04 19

In dual language

Transparency is identified to ensure

management of stakeholders are meet

with MSPO requirement.

Acceptable




Stakeholders meeting conducted on 28 03 19

No minutes of Meeting available

Transparency is identified in complying

with traceability system.

Acceptable




Transparency identified in the Traceability procedure

Dated 09 03 19

Process for identification of legal and other

requirements.

Acceptable




Legal register established. All Federal Laws noted.

Sarawak Ordinances – no record kept, except NREB Act.

Process for internal and external

communication.

Acceptable







MSPO MS 2530-3:2013

August, 2019


Communication procedures documented dated 08 03 19 for both

internal & external communication.

The outputs from management reviews

are consistent with the commitment to

continual improvement.

Acceptable




Management review meeting conducted on 03 03 19

Social / Continuous Improvement plan dated 11 03 19 documented

arising from Management review meeting

Internal audits planned and performed?

Records are available?

Acceptable




Internal Audit on MSPO Principles 1 – 6 conducted. IA Report doc

SPSB-MSPO-IA-19-01dated 02 03 19

21 NC recorded. Closed out on 06 03 19

Is a translator required? Yes No

2.1 SUPLEMENT FOR MS 2530-2, MS 2530-3 & MS 2530-4 (POLICIES)

Review the information listed below to determine readiness of the organization for the stage 2 audit.

MSPO Policy

Acceptable




Policy documented dated 01 03 2019

Safety and Health Policy

Acceptable





Sexual Harrassment Policy Acceptable





Good Social Practice

Policy

Acceptable





Environmental Policy Acceptable








MSPO MS 2530-3:2013

August, 2019


B) PROCEDURES

Training Procedure

Acceptable




Training program schedule done.

Training Procedure not fully documented

Internal Audit Procedure

Acceptable




IA conducted.

IA procedure not fully documented

Complaint and grievance Procedure

Acceptable




Noted Complaint & Grievance form

Procedure not fully documented

Communication Procedure

Acceptable




Procedure documented dated 08 03 19 covering Internal & External

Communication

Emergency and Incident procedure

Acceptable




Noted procedure: RISIKO SENGATAN & GIGITAN dated 01 03 19.

E & I procedure not fully documented

Traceability SOP

Acceptable




SOP documented on 09 03 19. Done & noted




MSPO MS 2530-3:2013

August, 2019


Site Management SOP

Acceptable




Following site management SOP documented:

Chemical & Fertilizer Handling, Site Office Management, Harvesting &

Pruning, Lorry. Farm Tractor Handling, PENUNGGANG MOTOSIKAL DI

LADANG, Spraying, Cutting, GENSET, Chemical. Doc dated 01 03 19. Doc

no SPSB-MSPO-SOP-19-001

Chemical Handling SOP

Acceptable




Chemical Handling SOP doc no SPSB-MSPO-SOP-19-011 dated 01 03 19

Scheduled Waste Handling SOP

Acceptable




SOP dated 02 02 19 doc no: SPSB-MSPO-E-19-01 noted

C) DOCUMENTS

List of Stakeholder

Acceptable




Complete lists of stakeholders documented in the file SARE MSPO - Social.

File no 1. Ref. V1/2019.

Land ownership

Acceptable




SARE Plantation is renting the plantation land from Robin Anak Remang for

in total of 402.35 hectares. Refer to Land Development Agreement dated

27th January 2008 between Robin Anak Remang and SARE Plantation Sdn

Bhd.

Customary Right document

Acceptable


Not applicable to the occupied land


Not applicable




MSPO MS 2530-3:2013

August, 2019


Boundary mapping of the land

Acceptable




Boundary Map sighted.

Google Map not available. Soft copies not available for both Boundary

and Google Map

HIRARC

Acceptable




The listing of HIRARC tables and matrix can be found in file SARE MSPO -

Safety and Health. File No.1, V1/2019. Refer to HIRARC on Palm census

dated 1st March 2019.

Training Programme

Acceptable




Training program documented. Executive Staff and Workers Annual

Training Programme Schedule for the year 2019 - 2020 on SOP and policies

will start on the month of May, 2019. Refer to the company file: SARE MSPO

- Safety and Health no 1, V1/2019.

Environmental Policy and

Management Plan

Acceptable




Ref: SPSB/MSPO/P/19/003 dated on 17th April, 2019 signed by the MD, that

the plantation is committed to adhere to their environmental policy.

Management plans are sighted and included in each section of

environment management documents example [Document titled

Managing Air pollution, company ref no: SPSB-MSPO-E-19-05 dated 1st

February, 2019]

Non-renewable energy estimation

Acceptable




Record stated that in 2018 the plantation the amount spent on fuel and oil

was RM 197,193.30.

Waste Identification

Acceptable




Waste identification documentation is based on First Schedule of the

Environmental Quality (Scheduled Wastes) Regulations 2005. The

documents are to be found in the soft copy of the company files under

the folder ‘part 5’ with the sub-folder titled Department of Environment.




MSPO MS 2530-3:2013

August, 2019


Water Management Plan

Acceptable




Water management plans are documented in SARE MSPO -

Environmental. File No.1, V1/2019 in 3 documents titled Sustainable Water

Management Plan, Proposed of Water Mitigation Plan and file with ref no

SPSB-MSPO-E-19-07 - Managing Water Pollution, dated 1st of February,

2019.

Business Management Plan

Acceptable




Documentation on SARE plantation Sdn Bhd business management plan

can be found in a company file with a ref no: SPSB/MSPO/BP/19/01

Product Pricing Mechanism

Acceptable




Product pricing mechanism is extracted from MANIS OIL SB receipt

statement with ref no MO/SAREP/1901-02 to SARE plantation Sdn Bhd on

the 1st to 31st January 2019.

Calculation for FFB:

Total FFB Delivered - FFB rejected=Net FFB received.

Oil Extraction Rate (OER)= 20%

Kernel Extraction Rate (KER)= 4%

Calculation of price:

MPOB avg. price for CPKO/CPO/PK - MPOB Cess - Fixed Distribution Cost -

Sarawak CPO Sales Tax - Sarawak CPKO Sales Tax= Mill Price

(OER + KER = Gross price FFB) - Processing Fees = Net price FFB

(Nett amount FFB X Nett Price FFB) + Volume incentive + Transport subsidy

= Nett total Price amount

* Processing fees = Rm 50

* Volume incentive = RM 5 per MT

* transport subsidy = RM 5 per MT

Contractor Agreement

Acceptable




No contractor engaged.

Soil and Topographic Information

Acceptable




Documentation incomplete




MSPO MS 2530-3:2013

August, 2019


Social and environmental impact

assessment

- Environmental Impact Assessment

- Social Impact Assessment –

- HCV Assessment

Acceptable




SIA Plan documented.Dated 11 03 19 Doc No: SARE-MSPO-09-1

Legal Assessment of Customary land

Acceptable


Not Applicable


Legal documentation of NCR sighted and verified

Compensation claim of customary

land

Acceptable


Not Applicable



Compensation vide rental agreement sighted & verified

Job Description

(Except for independant smallholder)

Acceptable Not Acceptable


Job description doc for Estate Manager, Admin Executive, Foreman,

Storekeeper, Office Clerk/Document Controller, FFB Grader, Security

Assistant: SARE/MSPO-05-1 dated 09 03 19

Payslip

(Except for independant smallholder)



Noted pay-slip of Estate workers / staffs. All above prescribed minimum

wage

Sales and Delivery record of FFB

(for independant smallholder only)



FFB delivery SOP doc SPSSB-MSPO-BMP-19-009 dated 01 03 19.

FFB sold to MANIS Palm Oil Mill.

Price Mechanism following MBOP Prices.

Pricing Mix:

Total FFB less Reject = Nett FFB – MPOB Cess – Fixed Distribution Cost –

Sarawak CPO Sales Tax / CPKO Sales Tax = Gross Price – less processing

cost = NETT FFB PRICE

Plus: Volume Incentive @RM5.00 per MT

Plus: Transport Subsidy @RM5

OER @20%, KER @4%

Ref: 1st – 31 01 19 doc.

NETT: Volume 976.06MT: @ RM369,555.84

All records in order and in compliance

Other records: Nil




MSPO MS 2530-3:2013

August, 2019


4. STAGE 1 FINDINGS

LISTS OF FINDINGS STAGE 1 AUDIT 17 & 18 04 2019

1. Management system manual; Need to write Executive Summary & referenced to Best

Practices Manual

2. Stakeholders meeting conducted on 28 03 19. No minutes of Meeting available

3. Legal register established. All Federal Laws noted. Sarawak Ordinances – no record kept,

except NREB Act.

4. Training Procedure not fully documented

5. Internal Audit procedure not fully documented

6. Emergency & Incident procedure not fully documented

7. Google Map not available. Soft copies not available for both Boundary and Google Map

8. Soil & Topographic information: documentation incomplete

THE FINDINGS AS DISCUSSED ARE SUITABLE

Action will be taken by Date: 15 05 19

Management

Representative

[Managing Director}

Name:

Wong Hua Ting

Signature:

Lead Auditor Name:

Wilfred Landong

Signature:

5. STAGE 1 AUDIT RESULTS

Further special technical competencies needed? Yes, please specify:

No

List any further information necessary for planning the Stage 2 audit: Nil

Based upon review of the above, please state your Ready for Stage 2 as scheduled

Ready for Stage 2 with concerns

Not ready for Stage 2

OVERALL ASSESSMENT OF STAGE 1

Based on overall Audit results, SARE PLANTATION is ready to be assessed under STAGE 2. This is

conditional to all action to be taken in STAGE 1 Corrective Action Report is completed & closed by or

before STAGE 2 Audit Date.

WILFRED LANDONG

LEAD AUDITOR

18TH APRIL 2019




MSPO MS 2530-3:2013

August, 2019


Notes

The stage 1 audit was based on collecting the necessary information regarding:

the scope of the management system, processes and location(s)

reviewing the organization’s status and understanding regarding the requirements of the

standard

the identification of objectives, processes and operations of the management

The above stated recommendation regarding the organization’s readiness for registration or

upgrade is limited to this information collected and was not based on a full audit of the

management system.

The information in this report should assist the organization in determining any action(s) needed prior

to the stage 2 audit and whether to proceed with the stage 2 audit as currently scheduled.

6.1 REPORT SUMMARY: FINDINGS/ACTION TAKEN / CLOSURE

6.1.1 SUMMARY OF FINDINGS

There were 8 Findings in Stage 1 Audit classified as AWF (acceptable with findings noted).

8 corrective action reports [CAR] were raised on these findings and presented to Auditee for action [at

end of Stage 1 Audit] with timeline of 2 months from 18 04 2019 to respond.

6.1.2 ACTION TAKEN BY AUDITEE

Auditee responded with documentations & photo evidence [where appropriate] on corrective action

taken; last submission of response by Auditee received on 15 05 2019.

6.1.3 CLOSURE OF CAR BY LEAD AUDITOR

The corrective action report (CAR) for these findings were closed out by Lead Auditor on 28 05 2019; upon

satisfactory confirmation and verification that all corrective action taken were in line with MSPO

requirements & MS2530-3:2013 Standards




MSPO MS 2530-3:2013

August, 2019


7.0. STAGE 2 AUDIT [ASSESSMENT] MSPO MS2530-3:2013

7.1 BASIC INFORMATION

A. CERTIFICATION BODY

Name BQAS Certification (M) Sdn Bhd

Audit Dates: From 10 June 2019 To 12 June 2019

Audit Duration: 6 man-days

Audit Team: Name Role

Wilfred Landong Lead Auditor


B. CERTIFIED ENTITY

Company Name: Sare Plantation Sdn Bhd Registration No 783210-M

Address: No 45, 1st Floor, Jalan Masjid Lama, 96100 Sarikei, Sarawak.

Site Name: Sare Plantation Sdn Bhd (located 15 km from Sarikei Town)

Address: Ulu Sungai Sentebu, Sentebu 3 km, Jalan Sare, 96100, Sarikei, Sarawak

Management Contact details:

Name Job Title Mobile Telephone Email

Wong Hua Ting Managing Director 013 814 0319 084 655 088 [email protected]

Su Si Chieng Executive 016 851 0098 084 655 088 [email protected]

No of Employees Local 12 Foreign 26 Total 38

MPOB License No: 5390 1100 2000 Expiry Date: 30 04 2020

Scope of Activity: Menjual & Mengalih FFB#

Date of Establishment 02 08 2007 Geo-Coordinates N2°04’26.0” E111°27’47.3”

Certified Area: 402.35

HA

Planted Area 382.38HA Conserved Area 19.97 HA

FFB Production (actual)

2018

12,319.68 MT FFB Production (estimate) 2019 11,425.40 MT

Sources of FFB Own estate Main FFB purchaser Manis Oil Sdn Bhd

No of Planting Blocks 39 blocks No of Palm trees 49,373 trees

Palm

Species

Golden Hope 500, Felda Yam

Gambae

Age Range of Palm

Trees

6 to 12 years

Land Status: Ownership ☐ Own Land ☒ Rented ☐ Joint Venture

Other Sustainability Certification: Nil






MSPO MS 2530-3:2013

August, 2019


7.2 STAGE 2: MAIN ASSESSMENT REPORT 10 to 12 June 2019

Principle 1: MANAGEMENT COMMITMENT & RESPONSIBILITY

Criterion 4.1. 1: Malaysian Sustainable Palm Oil (MSPO) Policy

Indicator Requirement Compliance Findings

4.1.1.1 A policy for the implementation of

MSPO shall be established.

☒ Yes

☐ No

☐ OFI

Sare Plantation have documented the

following policies: File Ref:

SPSB/MSPO/19/001 – 007: in dual language:

Doc dated 01 04 19

1. MSPO Policy

2. Sexual Harassment Policy

3. Good Social Practices Policy

4. Environmental Policy

5. Occupational Health & Safety

Policy

6. Quality Policy

7. Zero Burning Policy

Adequate number of policies to implement

MSPO

4.1.1.2 The policy shall also emphasize

commitment to continual

improvement.

☒ Yes

☐ No

☐ OFI

Quote last paragraph of MSPO Policy…

[“We would continue to strive for

improvement in every aspect of the

principle of MSPO and committed in

controlling, improving the operation of the

plantation for generations to come.”

This demonstrated commitment to

continual improvement”.]

All the other policies also stated

“commitment to continual improvement”.

Criterion4.1. 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.

☐ Yes

☐ No

☒ OFI

Sare Plantation documented in the SOP

that internal audit will be held annually.

An IA was held on 18 02 19 (with Report

given on the same day). Doc ref:

SPSB/MSPO/IA/19/01 (Audit checklist).

Internal Audit Report Doc

SARE/MSPO/IA/05.

Objective of the internal audit was to assess

SP preparatory readiness for MSPO

Certification Audit. Principles 1 to 6 of the

MS2530-3:2013 was audited. 19 non-

compliance items were recorded (mainly

on site audit criteria).

Audit included documentation review and

Site Assessment.

Noted in the Audit Report that most of

required action had been taken.

However, no corrective action report (CAR)

was raised to document closure of action

taken.




MSPO MS 2530-3:2013

August, 2019


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.

☐ Yes

☐ No

☒ OFI

Internal Audit Procedure is re-documented

as Doc ref: SPSB/MSPO/SOP/19-013: Arahan

Kerja Audit Dalaman dated 28 04 2019.

Review the document with the following

contents:

Objective

Rujukan

Definisi

Carta Aliran Kerja

Lampiran

Audit results held for IA done on 18/02/19

was well documented and evaluated;

corrective actions taken mainly on 16 03

2019 and the rest 01 04 2019 respectively.



taken

4.1.2.3 Report shall be made available to

the management for their review.

☒ Yes

☐ No

☐ OFI

In all the standard Operating Procedure of

Sare Plantation, it is documented that the

final part of the process ends with the

Managing Director review. SOP files are also

kept and maintained at the MD office

Criterion 4.1. 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.

☒ Yes

☐ No

☒ OFI

SP file Management Review No 1 V1/2019 is

maintained and kept at the Managing

Director’s office.

It is stated in Doc No: SARE/MSPO/03/1

dated 01/03/19 under 3.1.2 requirements

that Management review shall be done:

After internal audit

Before 3rd party audit

At least once a year.

Doc No SARE/MSPO/03/01 also contain

guidelines on Scope, Requirements,

Procedures, Records to ensure changes,

improvements, modification is taken for

more effective implementation of MSPO.

Criterion 4.1.4: 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 of the company.

☒ Yes

☐ No

☐ OFI

Action plan on continuous improvement in

this respect are documented in the Social

Improvement/Impact Plan dated 11 03 19

Doc No SARE/MSPO/09/LA & Environmental

Monitoring Plan Doc SPSB/MSPO/E/19/02.

Included in SIA are aspects and impacts on

job opportunities for locals, employment &

living conditions in the estate, Public &

workforce health & safety &

communications.

In the EMP following factors are being

monitored:




MSPO MS 2530-3:2013

August, 2019


Water quality & domestic waste &

hydrocarbon management

Soil & peat erosion

Labor line inspection

Flora & fauna

Electricity consumption & water

usage

Landfills & dumpsites

4.1.4.2 The company shall establish a

system to improve practices in line

with new information and

techniques or new industry

standards and technology, where

applicable, that are available and

feasible for adoption.

☒ Yes

☐ No

☐ OFI

SP has implemented use of solar energy at

plantation sites. In respect of water

management the following techniques are

implemented:

Silt pits – reduce water flow speed

& act as reservoir

Foothill drains – break for surface

water & minimize water loggings

and flooding of ravine & areas

surrounded by hill locks

Bunds & trenches – reduce surface

run of at concave slopes

Proper stacking of fronds to

minimize soil erosion

3 An action plan to provide the

necessary resources including

training, to implement the new

techniques or new industry

standard or technology (where

applicable) shall be established.

☐ Yes

☐ No

☐ OFI

SP had established & scheduled the Training

Plan for 2019 & 2020 for its staff on:

Harvesting techniques

Control of tirathaba bunch moth

Water & termite management

Fertilizer management

Integrated pest management

HIRARC

Chemical mixing & spraying

3R (reuse, reduce & recycle

Wildlife identification &

conservation

Electrical safety

Principle 2: TRANSPARENCY

Criterion 4.2. 1: Transparency of information and documents relevant to MSPO requirements


4.2.1.1 The management shall

communicate the information

requested by the relevant

stakeholders in the appropriate

languages and forms, except those

limited by commercial confidentiality

or disclosure that could result in

negative environmental or social

outcomes.

☒ Yes

☐ No

☐ OFI

In the folder MSPO/Standard Operating

Procedures/File No 1 included are the

following which have been viewed and

signed by the Sare Plantation Sdn Bhd MD

and communicated to stakeholders:

1. Pengurusan Sisa Buangan Terjadual

SPSB-MSPO-SOP-19-016 signed on

28/04/2019 also mentioned in Waste

Management SPSB-MSPO-E-19-01

dated 01/02/2019

2. Emergency & Incident Procedures


28/04/2019




MSPO MS 2530-3:2013

August, 2019


3. Complaint and Grievance Procedures


28/04/2019

4. Audit Dalaman SPSB-MSPO-SOP-19-013

signed on 28/04/2019

5. Training Development and

Management Procedure SPSB-MSPO-

SOP-19-012 signed on 28/04/2019

6. Penunggang Motosikal di dalam

ladang SPSB-MSPO-SOP-19-009 signed

on 01/03/2019

7. Chemical and Fertilizer Store SPSB-

MSPO-SOP-19-011 signed on

01/03/2019

8. Site Office SPSB-MSPO-SOP-19-010


9. Manuring SPSB-MSPO-SOP-19-008


10. Lorry/ Farm tractor FFB SPSB-MSPO-SOP-

19-007 signed on 01/03/2019

11. Harvesting and Pruning SPSB-MSPO-

SOP-19-006 signed on 01/03/2019

12. Genset SPSB-MSPO-BMP-19-005 signed

on 0/03/2019

13. Grass cutting or pruning SPSB-MSPO-

SOP-19-004 signed on 01/03/2019

14. Chemical spraying SPSB-MSPO-SOP-19-

003 signed on 01/03/2019

15. Chemical Mixing-Pesticide SPSB-MSPO-

SOP-19-002 signed on 01/03/2019

16. Risiko Sengatan dan Gigitan: SPSB-

MSPO-SOP-19-001 signed on

01/03/2019

17. Legal and Others Requirement Register

SARE/MSPO-04-1 signed on 10/03/2019

18. Communication Procedure

SARE/MSPO-06-1 signed on 08/03/2019

19. Traceability Procedure SARE/MSPO/07-

1 signed on 09/03/2019

20. Quality Manual SPSB-QM signed on

01/05/2019

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.

☐ Yes

☐ No

☒ OFI

Complain and Grievances form is available

at site office and complain/grievances

being lodged are filed in the folder

Complain and Grievances SARE/MSPO-08.

The latest complain/grievance recorded

was on 15/03/2019.

Lists of Publicly Available Documents that

has been approved and signed by the

Managing Director can be found in the

folder SARE/MSPO/Social/File no 1.

Lists of Publicly Available Documents

needed to be referenced and dated.

Criterion 4.2. 2: Transparency method of communication and consultation

4.2.2.1 Procedures shall be established for

consultation and communication

with the relevant stakeholders.

☒ Yes

☐ No

☐ OFI

Procedures for consultation and

communication has been establish since

08/03/2019 and can be found in the folder

MSPO/Standard Operating Procedure/File




MSPO MS 2530-3:2013

August, 2019


No 1 with the reference no SARE/MSPO/06-

01.

The procedures have been communicated

to the internal and external stakeholders at

the stakeholders meeting dated

28/03/2019. The minutes of the meeting can

be viewed in the folder SARE/MSPO-03

Management Review with reference no

SPSB/MSPO/MOM/01-19.

4.2.2.2 A management official should be

nominated to be responsible for

issues related to Indicator 1 at each

operating unit.

☒ Yes

☐ No

☐ OFI

Officials have been nominated and

assigned in all levels at the Main Office, Site

Office and estate.

Appointments of personnel in charge are

viewed in the folder title Appointment

Letters.

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.

☐ Yes

☐ No

☒ OFI

List of the stakeholders are well

documented in SARE/MSPO/Social/File no

1. Complain and Grievances are recorded

in the complaint and grievance folder with

the earliest lodged was on 05/02/2019 and

the latest was on 15/03/2019.

However, there are no records of

undertaking in resolving the issues stated in

the complaint and grievance forms.

Criterion 4.2.3: Traceability

4.2.3.1 The management shall establish,

implement and maintain a standard

operating procedure to comply with

the requirements for traceability of

the relevant product(s).

☒ Yes

☐ No

☐ OFI

The procedure for traceability is

documented in the Standard Operating

Procedure folder with reference no

SARE/MSPO/07-01 dated 09/03/2019.

Production of FFB and sales are recorded

monthly using the official mill receipts as

base for calculations.

4.2.3.2 The management shall conduct

regular inspections on compliance

with the established traceability

system.

☒ Yes

☐ No

☐ OFI

Top management conducted inspection on

daily basis with reports from site supervisor

and site office clerk.

4.2.3.3 The management should identify and

assign suitable employees to

implement and maintain the

traceability system.

☒ Yes

☐ No

☐ OFI

The management has appointed an admin

executive (Mr Wong Chung Ying) and to be

assisted by site office clerk to implement

and maintain the system.

4.2.3.4 Records of sales, delivery or

transportation of FFB shall be

maintained.

☐ Yes

☐ No

☐ OFI

Records that are kept and maintained:

Weighbridge ticket

Manis Oil Invoice

Saratok palm mill invoice

Mill Official Receipt/payment

voucher

FFB payment certificate




MSPO MS 2530-3:2013

August, 2019


Principle 3: COMPLIANCE TO LEGAL REQUIREMENTS

Criterion 4.3.1: Regulatory requirements


4.3.1.1 All operations are in compliance with

the applicable local, state, national

and ratified international laws and

regulations.

☒ Yes

☐ No

☐ OFI

SP keep and maintained a library of all the

relevant state, national & international laws &

regulations.

Assessment was done to verify compliance to

these laws and regulation both on

documentation and site/field audits.

Field operations audit was done on

compliance to

Sarawak Natural Resources &

Environment Ordinance 1958

(amended 2015)

Sarawak Forest Ordinance

(amended 2015)

Sarawak Wildlife Protection

Ordinance (amended 2015)

Department of Environment

Regulations – on water management,

pollution & schedule waste

treatment.

MPOB Act 1998; Regulations 2005

Labor Law/Regulations on

Employment of workers

Field audits on 12 06 verified all relevant

regulations were observed.

4.3.1.2 The management shall list all laws

applicable to their operations in a

legal requirement register.

☒ Yes

☐ No

☐ OFI

SP kept and maintained soft & hard copies of

all applicable laws; 23 ordinances, regulations

(state, national, international) available in the

MD office.

All pertinent laws & regulations in respect of

palm oil plantation business are made

available. Legal Requirement Register file is

referenced as SARE/MSPO/22/1/V1/2019.

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.

☒ Yes

☐ No

☐ OFI

SP has a document and record control

procedure to ensure all necessary & relevant

amendments are updated. The Executive of

SP is assigned this task.

4.3.1.4 The management should assign a

person responsible to monitor

compliance and to track and

update the changes in regulatory

requirements.

☒ Yes

☐ No

☐ OFI

SP appointed Su Si Chieng vide letter

MSPO/APT/III/2019 dated 01 02 19 as

Document Controller.

Criterion 4.3.2: Land use rights

4.3.2.1 The management shall ensure that

their oil palm cultivation activities do

not diminish the land use rights of

other users.

☒ Yes

☐ No

☐ OFI

There are Iban longhouses adjacent or

surrounding the Estate; Rh Celestine, Rh Buni,

Rh Udin, Rh Sli, Rh Dara, Rh Minggu.




MSPO MS 2530-3:2013

August, 2019


Tr. Celestine & Tr. Buni were interviewed

during Stage 1 & 2 Audit regarding their

relationship with SP Management. The

following feedbacks were recorded:

surrounding communities were given

unrestricted access to use plantation

roads

SP accord priority to them as

contractors/employees

SP assist by donating funds for annual

festivities (Christmas & Gawai Dayak)

Dialogues with villagers during field Audits

also verified rights of other users are not

affected negatively.

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.

☒ Yes

☐ No

☐ OFI

Plantation land (402.35 HA) is categorized as

Native Customary Rights land (NCR) owned

by Robin anak Remang (a local villager).

To legalize the rights to use the land, Sare

Plantation entered into a Land Development

Agreement on 27 January 2008, with the

Landowner (Robin) with major terms as

follows:

Terms – rental

Tenure – 50 years

Two payments a year

The land development agreement is sighted

and verified.

4.3.2.3 Legal perimeter boundary markers

should be clearly demarcated and

visibly maintained on the ground

where practicable.

☒ Yes

☐ No

☐ OFI

All the parcel of land had been perimeter

surveyed. Site/field audit were conducted on

both Stage 1 & 2. Verified and sighted

boundary markers (red/white pole, mounted

with concrete base on ground) clearly visible

and based on GPS readings were placed

appropriately at correct boundary points.

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).

☒ Yes

☐ No

☐ OFI

No evidence of any previous disputes noted

No land acquisitions in establishing the

Plantation. SP do not own the land. Land is

rented.

Land development agreement is legally

enforceable.

Witness to signing of the Agreement is the

Penghulu of the Sare Area (site of the

Plantation)

Criterion 4.3.3: 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.

☒ Yes

☐ No

☐ OFI

The land development agreement contain

clauses (clauses 4, 5, 6, 7) which states clearly

land status, land rights, land use and no other

encumbrances were noted.

None of the clauses in the agreement

indicate any threat to landowner.




MSPO MS 2530-3:2013

August, 2019


4.3.3.2 Maps of an appropriate scale showing

extent of recognized customary rights shall

be made available.

☒ Yes

☐ No

☐ OFI

Plantation Map is documented and copy

made available for Audit Report submission

4.3.3.3 Negotiation and FPIC shall be recorded

and copies of negotiated agreements

should be made available.

☐ Yes

☐ No

☐ OFI

The landowner (Mr Robin ak Remang) was

interviewed during Stage 1 Audit; he

confirmed fair dealings and FPIC was duly

obtained before signing the Agreement.

Negotiated Agreement was viewed and

verified.

Principle 4: SOCIAL RESPONSIBILITY, HEALTH, SAFETY & EMPLOYMENT CONDITIONS

Criterion 4.4.1: 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.

☐ Yes

☐ No

☒ OFI

Social impacts and plans are documented in

the file reference no SARE/MSPO-09-1a in the

folder MSPO/Social/ File no 1. It was reviewed

and signed by the top management on

11/03/2019.

However, there are no dates provided as to the

implementation of the plans or action to be

taken to mitigate some of the issues stated in

the plans.

Criterion 4.4.2: Complaints and grievances

4.4.2.1 A system for dealing with complaints

and grievances shall be established and

documented.

☒ Yes

☐ No

☐ OFI

The SOP for complaints and grievances are

viewed in the folder MSPO/Standard Operating

Procedures/File no 1 with reference no SPSB-

MSPO-SOP-19-014 dated on 28/04/2019.

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.

☒ Yes

☐ No

☐ OFI

The ability for the system to resolves disputes

can be seen in its work flow documented in file

SPSB-MSPO-SOP-19-014 dated 28/04/2019.

4.4.2.3 A complaint form should be made

available at the premises, where

employees and affected stakeholders

can make a complaint.

☒ Yes

☐ No

☐ OFI

Complaints and Grievance form can be

obtained freely at the main office and site

office. Entries have been made using the

available form with the earliest on 05/02/2019.

4.4.2.4 Employees and the surrounding

communities should be made aware

that complaints or suggestions can be

made any time.

☒ Yes

☐ No

☐ OFI

Both internal and external stakeholders have

been made aware of the procedures through

the first stakeholders meeting dated

28/03/2019. A type of suggestion/complaints

box also being installed beside the front door

of the site office. Also, interviews with the

stakeholders verified their awareness of the

system.




MSPO MS 2530-3:2013

August, 2019


4.4.2.5 Complaints and resolutions for the last 24

months shall be documented and made

available to affected stakeholders upon

request.

☐ Yes

☐ No

☒ OFI

Complaints has been made through the

complaints and grievances form with the

earliest entry at 05/02/2019.

However, the undertaking and the date to

resolve the issues have not been adequately

recorded.

Criterion 4.4.3: Commitment to contribute to local sustainable development

4.4.3.1 Growers should contribute to local

development in consultation with the

local communities.

☒ Yes

☐ No

☐ OFI

Sare Plantation Sdn Bhd contribute significantly

to the welfare and development of the local

communities. These are verified through

interview conducted with the local

communities representative Tuai Rumah

Celestine Kiai.

Criterion 4.4.4: Employees safety and health

4.4.4.1 An occupational safety and health

policy and plan shall be documented,

effectively communicated and

implemented.

☒ Yes

☐ No

☐ OFI

SPSB commitment to its Occupational Safety

and Health (OSH) policies was documented in

SPSB/MSPO/P/19/004 dated 01/04/2019

located in the folder SARE/MSPO-01/Policies.

Mr Tiong Wu Kai was a person in charge of OSH

with letter of appointment

SPSB/MSPO/APL/11/2019 dated 01/02/2019.

The OSH policy and plan was first come to view

during the stakeholders meeting dated

23/03/2019.

Internally, the awareness of the staff and

workers of OSH policy were strengthen through

various training programs started on

29/04/2019. The latest training was on

03/05/2019 for Basic First Aid Training for

Executive among others.

Safety and health posters and procedures are

prominently displayed at the main office and

site office.

4.4.4.2 The occupational safety and health

plan shall cover the following:

☐ Yes

☐ No

☐ OFI

In the folder SARE/MSPO-10/Employees Safety

and Health the following OSH procedures and

regulations are found, written in Bahasa

Malaysia:

Menuai

Meracun

Pemandu kenderaan

Stor bahan kimia dan baja

Bengkel dan bilik genset

Kawasan Ofis dan kediaman

Penggunaan mesin memotong berantai

Peraturan-peraturan, syarat syarat dan

terma terma sebagai pemandu/operator

kenderaan dan mesin

Surat pegakuan pemahaman dari wakil

pekerja bertarikh 01/03/2019




MSPO MS 2530-3:2013

August, 2019


A. A safety and health policy, which is

communicated and implemented.

☒ Yes

☐ No

☐ OFI

The OSH policy and plan was first come to view

during the stakeholders meeting dated

23/03/2019.

Internally, the awareness of the staff and

workers of OSH policy were strengthen through

various training programs started on

29/04/2019. The latest training was on

03/05/2019 for Basic First Aid Training for

Executive among others.

Safety and health posters and procedures are

prominently display at the main office and site

office.

B. b) The risks of all operations shall be

assessed and documented

☒ Yes

☐ No

☐ OFI

Hazard Identification, Risk Assessment and Risk

Control (HIRARC) is adequately documented in

the folder SARE/MSPO-10/Employees Safety

and Health.

C. An awareness and training programme

which includes the following

requirements for employees exposed to

pesticides:

☒ Yes

☐ No

☐ OFI

Related training programs to pesticides was

conducted on 29/04/2019 which include:

PPE usage

SOP for Chemical Mixing

SOP for Chemical Spraying (herbicide)

SOP for Chemical Spaying (Pest and

Disease)

The above training programs were

documented in Executive Staff and Workers

Annual Training Programme Schedule for the

Year 2019 - 2020 in the folder SARE/MSPO-

12/Training.

Signboards and posters for chemical handling

are sighted prominently at the chemical stores

and site office.

C.1 All employees involved shall be

adequately trained on safe working

practices; and

☒ Yes

☐ No

☐ OFI

OSH training is on-going, in which the first

training was on 29/04/2019 and the latest was

on 03/05/2019. The following training programs

have being conducted to the staff and

workers:

Safety and Health (PPE)

HIRARC awareness

SOP for Chemical Mixing

SOP for Chemical Spraying (Herbicide)

SOP for Chemical Spraying (Pest &

Disease)

SOP for Harvesting and Pruning

SOP for Knapsack sprayer

SOP for cut or prune with parang or knife

SOP for preventing insect/animal bites

and stings

SOP for Genset

SOP for Lorry or Farm Tractor (Transport

FFB)

SOP for other transportation

SOP for Safety in the Office

SOP for Chemical and Fertilizer Store

SOP for Security

Fire Control and Emergency training for

labour line, field worker and executive




MSPO MS 2530-3:2013

August, 2019


Emergency Response training for natural

disaster

Safety and Health awareness at labour

line/ quarter

Attendance sheets and various pictures of staff

and workers OSH training were sighted in the

same folder as verification of their participation

in the training programs.

C.2 All precautions attached to products

shall be properly observed and applied.

☒ Yes

☐ No

☐ OFI

Safety Data Sheets (SDS) are available on

site/estate, located conveniently at one of the

stores.

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).

☒ Yes

☐ No

☐ OFI

Personal Protective Equipment (PPE) is being

provided at the Estate and kept at the General

storage. Workers and staffs are made aware of

the risks and appropriate PPE to be used

according to HIRARC as of their training stated

in Executive Staff and Workers Annual Training

Programme Schedule for the Year 2019 - 2020

in the folder SARE/MSPO-12/Training.

Records of PPE issuance also available in the

folder titled Receipt for Personal Protective

Equipment with file Ref. No SPSB-MSPO-SHC-F-

002 dated 10/02/2019.

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

Labelling) Regulation 1997 and

Occupational Safety Health (Use and

Standard of Exposure of Chemical

Hazardous to Health) Regulation 2000.

☒ Yes

☐ No

☐ OFI

SOP for handling of chemicals can be viewed

at the folder SARE/MSPO-17/Estate Operations-

Standard Operating Procedure (SOP).

Available SOP in the folder for chemical

handling are:

Chemical and Fertilizer Store Ref. SPSB-

MSPO-SOP-19-011

Chemical Spraying Ref. SPSB-MSPO-SOP-

19-003

Chemical Mixing Ref. SPSB-MSPO-SOP-19-

002

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.

☒ Yes

☐ No

☐ OFI

Mr Tiong Wu Kai was appointed person in

charge of OSH with letter of appointment

SPSB/MSPO/APL/11/2019 dated 01/02/2019.

National regulations and compliance checklists

are available at the main office for his perusal

under the folder SARE/MSPO-22/Legal

Requirement Register.

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

☐ Yes

☐ No

☒ OFI

Two-way communication between the

management and employees are recorded

using Complaint and Grievances Form and

Workplace Inspection Form.

However, there are inadequate records of

remedial actions taken although there are

suggestion/comments written in the forms.




MSPO MS 2530-3:2013

August, 2019


H. Accident and emergency procedures

shall exist and instructions shall be clearly

understood by all employees.

☒ Yes

☐ No

☐ OFI

SOP for accident and emergency are clearly

written in the folder SARE/MSPO-17/Estate

Operation-Standard Operating Procedure

under the file Ref. SPSB-MSPO-SOP-19-015.

Further awareness was highlighted by the

training provided as stated in Executive Staff

and Workers Annual Training Programme

Schedule for the Year 2019 - 2020 in the folder

SARE/MSPO-12/Training.

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.

☒ Yes

☐ No

☐ OFI

First Aid Kits were available at the site office

and workers’ quarters. Basic First Aid Training

was conducted to all staff and workers on

03/05/2019 as stated in Executive Staff and

Workers Annual Training Programme Schedule

for the Year 2019 - 2020 in the folder


J. Records shall be kept of all accidents

and be reviewed periodically at

quarterly intervals.

☒ Yes

☐ No

☐ OFI

There are no records of any accident so far.

Therefore, it is unavailable at the moment.

Criterion 4.4.5: 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.

☒ Yes

☐ No

☐ OFI

The policy for good social practices Ref.

SPSB/MSPO/P/19/002 was reviewed and

approved/signed by the Managing Director on

the 1/04/2019.

The policy is written in dual language (English

and Bahasa Malaysia) and prominently

displayed at the main and site office boards.

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.

☒ Yes

☐ No

☐ OFI

There is no evidence of gender, racial or

religious discrimination based on observation

and interviews.

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.

☒ Yes

☐ No

☐ OFI

Viewed Record of monthly payslips and wages

indicated that SPSB paid its workers have met

the legal and industry minimum requirements.

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.

☒ Yes

☐ No

☐ OFI

There are no contractors being used in the

plantation.

4.4.5.5 The management shall establish records

that provide an accurate account of all

employees (including seasonal workers

and subcontracted workers on the

☒ Yes

☐ No

☐ OFI

Viewed records of employees are well

documented and contain all the mentioned

details.




MSPO MS 2530-3:2013

August, 2019


premises). The records should contain full

names, gender, date of birth, date of

entry, a job description, wage and the

period of employment.

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.

☒ Yes

☐ No

☐ OFI

Details of employment contract is found to be

fair with a copy of the agreement is given to

the employee.

4.4.5.7 The management shall establish a time

recording system that makes working

hours and overtime transparent for both

employees and employer.

☒ Yes

☐ No

☐ OFI

Site manager or supervisor/group leader will

monitor the works and sign a worker’s time

card after the work is done on that day.

Overtime (if any) and type of work are also

recorded. The card is kept by the worker until

the end of the month to be collected by the

management for wages or commission

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.

☒ Yes

☐ No

☐ OFI

The workers working hours at Sare plantation is

tend to be flexible in which the workers set their

own breaks and daily working hours. However,

cumulative working hours weekly does not

exceed legal regulations. Any overtime is well

recorded in the time card.

4.4.5.9 Wages and overtime payment

documented on the pay slips shall be in

line with legal regulations and collective

agreements.

☒ Yes

☐ No

☐ OFI

Viewed wages and overtimes payment are

clearly stated in the payslips.

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.

☒ Yes

☐ No

☐ OFI

Free medical care is offered to the workers and

staff at Klinik Wong located at the same

commercial building of the SPSB main office, at

Sarikei Town.

There is no written contract available between

the clinic and SPSB as the clinic is owned by

the relative of the Managing Director.

Verification is through the workers’ interview.

4.4.5.11 In cases where on-site living quarters are

provided, these quarters shall be

habitable and have basic amenities

and facilities in compliance with the

Workers' Minimum Standards Housing

and Amenities Act 1990 (Act 446) or any

other applicable legislation.

☒ Yes

☐ No

☐ OFI

On site visit have found that the on-site living

quarters have being provided with basic

amenities and facilities in compliance with the

Workers’ Minimum Standards Housing and

Amenities Act 1990.

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.

☒ Yes

☐ No

☐ OFI

The policy and guidelines for prevention sexual

harassment and violence can be sighted in the

folder SARE/MSPO-01/Policies with Ref.

SPSB/MSPO/P/19/001 dated and signed by the

managing Director on 01/04/2019.

The policy and guidelines are written in dual

language (English and Bahasa Malaysia) and




MSPO MS 2530-3:2013

August, 2019


prominently display at the main office and site

office boards.

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.

☐ Yes

☐ No

☐ OFI

The Good Social Practices policy incorporated

the right of workers to freedom of association

and effective recognition of the right to

collective bargaining.

The policy Ref. SPSB/MSPO/P/19/002 was

formulated and signed by the Managing

director on the 01/04/2019.

It was prominently display at the main office

and site office boards.

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.

☒ Yes

☐ No

☐ OFI

No underage/children and young person is

found to have work for SPSB, complying with

the minimum age legislation.

Criterion 4.4.6: Training and competency

4.4.6.1 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.

☒ Yes

☐ No

☐ OFI

The Executive Staff & Workers Annual Training

Programme Schedule for the Year 2019-2020

which is SPSB training programme is

adequately documented in the folder


Attendances of each training program are

recorded properly in the file Ref. SPSB-MSPO-F-

10

4.4.6.2 Training needs of individual employees

shall be identified prior to the planning

and implementation of the training

program in order to provide the specific

skill and competency required to all

employees based on their job

description.

8

☐ Yes

☐ No

☒ OFI

Viewed Training Need Analysis was found to be

lacking that required a more comprehensive

documentation and should be appropriately

referenced.

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.

☒ Yes

☐ No

☐ OFI

The current training plan is incorporated in

Executive Staff & Workers Annual Training

Programme Schedule for the Year 2019-2020.

Training programme will be reviewed after the

above schedule reached its end date.




MSPO MS 2530-3:2013

August, 2019


Principle 5: ENVIRONMENT, NATURAL RESOURCES, BIODIVERSITY & ECOSYSTEM SERVICES

Criterion 4.5.1: 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.

☒ Yes

☐ No

☐ OFI

Environmental Policy & Management Plan is

documented vide SPSB/MSPO/P/19/003

dated 01 04 19. Policy is documented in

dual language (Bahasa & English)

& displayed at SP main office and at site

office.

The EMP contained references and citation

from NRE Act 2015, DOE regulations

(national) & Forest & Wildlife Protection

Ordinance (Sarawak).

Stakeholders briefing was conducted on 11

03 19 attended by SP employees and

stakeholders. Minutes of meeting verified

and noted that briefing on all policies and

SOP was done by SP Management and

MSPO Consultant.

4.5.1.2. The environmental management plan

shall cover the following:

☒ Yes

☐ No

☐ OFI

A. An environmental policy and objectives ☒ Yes

☐ No

☐ OFI

Policy Statement

SP is committed to producing FFB in

compliance and without compromising on

environmental issues.

Policy objectives

Fulfill environmental compliance

obligations

Prevent pollution from estate

activities

Continual improvement of

environmental management

system

Protecting biodiversity and

ecosystem

Compliance to all safety and

health regulations

Doc ref: SPSB/MSPO/P/19/003 dated 01 04

19

B. The aspects and impacts analysis of all

operations.

☒ Yes

☐ No

☐ OFI

Aspect Impact Assessment is documented

vide doc SPSB/MSPO/E/19/02 dated 01 02

19.

Process Unit were

1. Dumpsite

Analysis done on generation of

leachate & liquid that drains or

leaches from the dumpsite.

Recommendation from findings

was to organize awareness briefing

on environmental pollution & waste




MSPO MS 2530-3:2013

August, 2019


minimization to staff and

contractors

2. General – on electricity

consumption & water usage.

Recommendation is to maintain

current practice

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.

☒ Yes

☐ No

☐ OFI

SP documented the following contents in its

EMP

Sustainable water management

plan

Water mitigation plan

Environmental management

system – on Managing Air, Water &

Soil Pollution

Environmental monitoring plan

These environmental improvements plan

are reviewed at least twice annually by SP

management.

Ref doc: SPSB/MSPO/E/19/01 – 07 dated 01

02 19

4.5.1.4 A programme to promote the positive

impacts should be included in the

continual improvement plan.

☒ Yes

☐ No

☐ OFI

This is scheduled annually; doc ref: SPSB

Training Program 2019-2020 MSPO 04/06/TP.

For 2019, 6 programs on SOP & Safety &

Health as part of continual improvement

plan was conducted between 29 04 19 – 16

05 19.

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.

☐ Yes

☐ No

☐ OFI

This is scheduled annually; doc ref: SPSB

Training Program 2019-2020 MSPO 04/06/TP

For 2019 training was conducted on:

3R (reduce, reuse, recycle) on 16 05

19

No Hunting / HCV (high

conservation value) awareness 04

05 19

Environmental awareness training

03 05 19

Chemical & Fertilizer handling

usage

SOP for Knapsack sprayer training

on 0 04 19.

Training Program is planned all year round

by SP management.

4.5.1.6 Management shall organize regular

meetings with employees where their

concerns about environmental quality

are discussed.

☒ Yes

☐ No

☐ OFI

Noted in the Training & Meeting calendar

document 03 03 19, Management meet

with employees is held monthly; with Estate

Manager Monday morning muster is

scheduled weekly. This is the avenue for SP

management to discuss environmental

issues with their staffs & workers.




MSPO MS 2530-3:2013

August, 2019


Criterion 4.5.2: 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.

☐ Yes

☐ No

☒ OFI

Based on record SP usage of fossil fuel for

2018 RM197,193 / 98,596.6 liters.

Consumption is monitored monthly.

Records of 2019 is also viewed and at time

of Audit records of up to date [May]

consumption is being updated

4.5.2.2 The oil palm premises shall estimate the

direct usage of non-renewable

energy for their operations, including

fossil fuel, and electricity to determine

energy efficiency of their operations. This

shall include fuel use by contractors,

including all transport and machinery

operations.

☐ Yes

☐ No

☒ OFI

Noted and verified the following estimates

on fossil fuel [diesel & petrol] for:

2019: 99,000 liters

2020: 97,000 liters

Installation and use of additional solar

energy panel expected to reduce usage of

fossil fuel

4.5.2.3 The use of renewable energy should be

applied where possible.

☒ Yes

☐ No

☐ OFI

SP is using solar energy to provide power

supply to site office and workers quarters

Criterion 4.5.3: Waste management and disposal

4.5.3.1 waste products and sources of pollution

shall be identified and documented.

☒ Yes

☐ No

☐ OFI

SP has established procedure doc ref:

SPSB/MSPO/E/19/01 dated 01 02 19 on

Scheduled Waste Handling & Waste

Management Process.

Documented guidelines on identification

follow categorization of ‘classification of

waste listed under environmental quality

(scheduled wastes) regulations 2005”.

Reference code SW101 – 110, SW204 – 206,

SW301 – 312, SW424 - 426

Field/Site Audits at Schedule waste store

during Stage 1 & 2 verified and confirmed

SW management in the estate is compliant

with procedure.

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:

SPSB/MSPO/E/19/01 dated 01 02 19 is the

waste management plan document

A Identifying and monitoring sources of

waste and pollution

☒ Yes

☐ No

☐ OFI

SPSB/MSPO/E/19/01 dated 01 02 19

This management document provides the

guidelines on identifying and monitoring

sources of waste & pollution.

B. Improving the efficiency of resource

utilization and recycling of potential

wastes as nutrients or converting them

into value-added by-products.

☒ Yes

☐ No

☐ OFI

SP had been practicing using empty fruit

bunch as organic fertilizer.

This practice is sighted during Stage 1 & 2

Site Audit




MSPO MS 2530-3:2013

August, 2019


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.

☒ Yes

☐ No

☐ OFI

SPSB/MSPO/E/19/01 dated 01 02 19 is the

SOP document on Scheduled Waste

Handling & Waste Management Process.

Detailed in the SOP are the necessary

process to be undertaken on storage, safe

handling and disposal.

4.5.3.4 Empty pesticide containers shall be

punctured and disposed in an

environmentally and socially responsible

way, such that there is no risk of

contamination of water sources or to

human health. The disposal instructions

on manufacturer’s labels should be

adhered to. Reference should be made

to the national programme on recycling

of used HDPE pesticide containers.

☒ Yes

☐ No

☐ OFI

This is verified during both Stages of Field

Audit at the Scheduled Waste Store. Noted

and confirmed that empty pesticide

containers are punctured. Spillage tray is

placed appropriately to trap any possible

spillage.

Scheduled waste collection and disposal is

done monthly by Contractors licensed with

the local council.

4.5.3.5 Domestic waste should be disposed as

such to minimize the risk of

contamination of the environment and

watercourses.

☒ Yes

☐ No

☐ OFI

This is verified during both Stages of

Field/Site Audit. Dustbins are appropriately

located at Workers Quarters & Estate Office

to keep domestic waste. These are

disposed of on at least a weekly basis to a

local council dumpsite approximately 3 km

from the estate.

Criterion 4.5.4: 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.

☒ Yes

☐ No

☐ OFI

This assessment is done vide the

Environmental Management System (EMS)

doc ref: SPSB/MSPO/E/19/05-07 dated 01 02

19 on

Managing Water, Air, Soil pollutions

Waste management

Records of the assessment is kept and

monitored.

4.5.4.2 An action plan to reduce identified

significant pollutants and emissions shall

be established and implemented.

☒ Yes

☐ No

☐ OFI

This Action Plan is documented vide

Environmental Monitoring Plan doc ref

EMP/MSPO/19-01 dated 02 02 19.

Criterion 4.5.5: Natural water resources

4.5.5.1. 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:

☐ Yes

☐ No

☐ OFI

This is documented in the Sustainable Water

Management Plan doc ref:

SWMP/MSPO/19-01 dated 03 02 19.

A Assessment of water usage and sources

of supply.

☒ Yes

☐ No

☐ OFI

Water sources are mainly from

drains and streams in the plantation

Collection of rain water is also

another source

The plan also spelt out techniques of

assessing water usage in the chapter




MSPO MS 2530-3:2013

August, 2019


on “Soil & Water Conservation in Oil

Palm field-inland estate”

B Monitoring of outgoing water which may

have negative impacts into the natural

waterways at a frequency that reflects

the estate’s current activities.

☒ Yes

☐ No

☐ OFI

The plan also spelt out techniques of

monitoring outgoing water.

The chapter on Water Mitigation Plan also

mentioned Estate Manager will inspect all

water outgoing areas/outlet on a weekly

basis.

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.).

☒ Yes

☐ No

☐ OFI

This is document in the Water Management

Plan. In practice it is observed during field

audit following measures are taken to

optimize water usage:

Collection of rainwater using

storage tanks

Foothill drains – break for surface

water

Proper stacking of fronds – minimize

soil erosion and surface run off

D Protection of water courses and

wetlands, including maintaining and

restoring appropriate riparian buffer

zones at or before planting or

replanting, along all natural waterways

within the estate.

☒ Yes

☐ No

☐ OFI

Riparian zone/reserves are created along

drains and streams and buffer zone are

created along land boundaries. No

planting, no weeding, no manuring, no

spraying of pesticides and weedicides are

observed in these zones. Approximately 19

HA are set aside and undisturbed.

E Where natural vegetation in riparian

areas has been removed, a plan with a

timetable for restoration shall be

established and implemented.

☒ Yes

☐ No

☐ OFI

Noted and observes as OFI during the 1

Stage Audit the riparian areas in the vicinity

of the Estate office part of the natural

vegetation had been removed. SP had

undertaken immediate measures to restore

the natural vegetation in the affected area.

Additionally, fast growing beneficial plants

(non-invasive species are planted).

F Where bore well is being use for water

supply, the level of the ground water

table should be measured at least

annually.

☒ Yes

☐ No

☐ OFI

No evidence of occurrence of bore well

during the field audits. Estate Manager

confirmed that other natural water sources

are sufficient to meet estate needs.

4.5.5.2 No construction of bunds, weirs and

dams across main rivers or waterways

passing through an estate.

☒ Yes

☐ No

☐ OFI

Main rivers and waterways mostly occur

outside the boundary of the estate. Noted

during field/site audit that although streams

occur in the in estate, there is no

construction of bunds across any

waterways.

4.5.5.3 Water harvesting practices should be

implemented (e.g. water from road-side

drains can be directed and stored in

☒ Yes

☐ No

☐ OFI

Field Audit noted that Water harvesting

practices include:

Rainwater harvesting using storage

tanks




MSPO MS 2530-3:2013

August, 2019


conservation terraces and various

natural receptacles).

Constructions of bunds

Temporary soil block to reduce

intensity and retain water in drains

Blocking of sub drain

Criterion 4.5.6: Status of rare, threatened, or endangered species and high biodiversity value area

4.5.6.1. Information shall be collated that

includes both the planted area itself and

relevant wider landscape-level

considerations (such as wildlife

corridors). This information should cover:

A Identification of high biodiversity value

habitats, such as rare and threatened

ecosystems, that could be significantly

affected by the grower(s) activities.

☒ Yes

☐ No

☐ OFI

SP had plans to conduct assessment of high

biodiversity value habitats within and

outside the estate. Field audit conducted

during the assessment found no evidence

HBVH; no peat dome occurred in and

outside of the area

B Conservation status (e.g. The

International Union on Conservation of

Nature and Natural Resources (IUCN)

status on legal protection, population

status and habitat requirements of rare,

threatened, or endangered species),

that could be significantly affected by

the grower(s) activities.

☒ Yes

☐ No

☐ OFI

Interviews with the workers of the estate

and also field / site audit found no

evidence of any occurrence of rare and

endangered species (Lead Auditor is a

Wildlife Expert).

Wild animals found are ground squirrels and

some tracks of wild boars.

4.5.6.2. If rare, threatened or endangered

species, or high biodiversity value, are

present, appropriate measures for

management planning and operations

should include:

☐ Yes

☐ No

☐ OFI

A Ensuring that any legal requirements

relating to the protection of the species

are met.

☒ Yes

☐ No

☐ OFI

Wildlife Posters are displayed on Estate

Office notice. Sarawak Wildlife Protection

Ordinance is available at SP office.

B Discouraging any illegal or inappropriate

hunting, fishing or collecting activities

and developing responsible measures to

resolve human-wildlife conflicts.

☒ Yes

☐ No

☐ OFI

Field / Site Audit noted Signages / warnings:

No fishing

No hunting

No open burning

No trapping

Evidence of adequate measures taken by

SP.

4.5.6.3 A management plan to comply with

Indicator 1 shall be established and

effectively implemented, if required.

☒ Yes

☐ No

☐ OFI

Management Plan of SP is referenced to

document SPSB/MSPO/MP/19/01.

Item 8 of the Management Plan specified

Conservation requirements of the Sarawak

Wildlife Protection Ordinance should there

be any occurrence of endangered species.

Criterion 4.5.7: Zero burning practices




MSPO MS 2530-3:2013

August, 2019


4.5.7.1 Use of fire for waste disposal and for

preparing land for oil palm cultivation or

replanting shall be avoided except in

specific situations, as identified in

regional best practice.

☒ Yes

☐ No

☐ OFI

SP has documented Zero Burning Policy.

Doc ref: SPSB/MSPO/P/19/007 dated 01 04

19

Field / Site observation confirmed and verify

this Policy is well observed and estate

workers are in full compliance of this Policy.

4.5.7.2 A special approval from the relevant

authorities shall be sought in areas

where the previous crop is highly

diseased and where there is a significant

risk of disease spread or continuation

into the next crop.

☒ Yes

☐ No

☐ OFI

SP is well aware of the requirements of this

compliance criteria under both the

Sarawak NREB and DOE (national authority)

Up to now SP reported no occurrence of

diseased crops.

4.5.7.3 Where controlled burning is allowed, it

shall be carried out as prescribed by the

Environmental Quality (Declared

Activities) (Open Burning) Order 2003 or

other applicable laws.

☒ Yes

☐ No

☐ OFI




4.5.7.4 Previous crops should be felled or

mowed down, chipped and shredded,

windrowed or pulverized or ploughed

and mulched.

☒ Yes

☐ No

☐ OFI




Principle 6: BEST PRACTICES

Criterion 4.6.1: Site management


4.6.1.1 Standard operating procedures shall

be appropriately documented and

consistently implemented and

monitored.

☒ Yes

☐ No

☐ OFI

Standard operating procedures are

appropriately documented and can be

found in the folder SARE/MSPO-17/Estate

operation-Standard Operating Procedure.

Monitoring of the SOP implementation is done

through regular workplace inspection by the

management and any finding is recorded

using Workplace Inspection Form.

4.6.1.2 Where oil palm is grown within

permitted levels on sloping land,

appropriate soil conservation

measures shall be implemented to

prevent both soil erosion as well as

siltation of drains and waterways.

Measures shall be put in place to

prevent contamination of surface and

groundwater through runoff of either

soil, nutrients or chemicals.

☒ Yes

☐ No

☐ OFI

Base on the contour map and site visit, the

plantation is mostly (approximately 99%)

sitting on a flat land, so there is no terracing of

sloping land that may cause serious soil

erosion.

An excavator is used to regularly clean up

drains and waterways from any siltation

occurred.

4.6.1.3 A visual identification or reference

system shall be established for each

field.

☒ Yes

☐ No

☐ OFI

Field Audit verified SP had emplaced Block

Markers in all 39 planting blocks with following

information

Block no

Hectarages

No of palm trees

Species planted

Criterion 4.6.2: Economic and financial viability plan




MSPO MS 2530-3:2013

August, 2019


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.

☒ Yes

☐ No

☐ OFI

Business plan is formulated and documented

with a Ref. SPSB/MSPO/BP/19/01, signed by

the Managing Director on 01/03/2019.

As written in the business plan, 2016 - 2018

Profit and Loss account and Cash flow

statement indicate that SPSB have the ability

to financially sustain the plantation for years

to come.

4.6.2.2 Where applicable, an annual replanting

programme shall be established. Long

term replanting programme should be

established and review annually, where

applicable every 3-5 years.

☒ Yes

☐ No

☐ OFI

SPSB was incorporated in 2007 and gradually

plant the area of 402.35 with palm oil trees

with the oldest plantation blocks are 12 years

old and the newest blocks are 6 years old.

Replanting programme is not applicable to

the plantation currently.

4.6.2.3 The business or management plan may

contain:

☐ Yes

☐ No

☒ OFI

SPSB business plan Ref. SPSB/MSPO/BP/19/01

include:

Executive Summary

Vision and Mission

Business Strategy

Market analysis

Company profile

Product profile

Management and Organization profile

Funding plan

Financial statements

A Attention to quality of planting materials

and FFB.

☒ Yes

☐ No

☐ OFI

SPSB is committed to the quality of their FFB as

mentioned in company’s Quality Policy Ref.

SPSB/MSPO/P/19/006 viewed in the folder

SARE/MSPO-01/Policies dated and signed by

the Managing Director on 01/04/2019.

Also, noted that SPSB has won Anugerah

Industri Sawit an award by MPOB for below

500 hectares category in 2013 subsequently

to 2018.

B Crop projection: site yield potential, age

profile, FFB yield trends.

☒ Yes

☐ No

☐ OFI

The business plan contained complete

information on crop projections

C Cost of production: cost per ton of FFB. ☒ Yes

☐ No

☐ OFI

Using simple formula of: (Gross profit - total

expenses - tax = Net Income after Tax)/ Total

FFB yield in MT = Cost per ton of FFB.

Using the data acquired from the Business

plan Ref. SPSB/MSPO/BP/19/01, in 2018 the

cost per ton of FFB was Rm 1,908,159.26/

12,319.68 MT = Rm 154.90 per ton

.

D Price forecast ☒ Yes

☐ No

☐ OFI

Price forecast for the year 2019 and 2020 are

expected to be around Rm 360 MT on

average.




MSPO MS 2530-3:2013

August, 2019


E Financial indicators: cost benefit,

discounted cash flow, return on

investment.

☒ Yes

☐ No

☐ OFI

As in 2016 Return on Investment (ROI) was

62%, in 2017 was 217% and 2018 was 90%. It

was assumed according to the financial plan

that the initial working capital for the year

was Rm1 million. The high FFB price that

reached as high as Rm 668 MT contributed to

the high ROI in 2017 and early 2018.

4.6.2.4 The management plan shall be

effectively implemented and the

achievement of the goals and

objectives shall be regularly monitored,

periodically reviewed and documented.

☒ Yes

☐ No

☐ OFI

The business plan can be monitored

periodically through series of yield and

financial data that may be acquired from

pricing mechanism and monthly FFB

production. Noted and verified compliance.

Criterion 4.6.3: Transparent and fair price dealing

4.6.3.1 Pricing mechanisms for the products

and other services shall be documented

and effectively implemented.

☒ Yes

☐ No

☐ OFI

Pricing mechanism is adequately

documented in Mill receipts and is kept as

sales record.

4.6.3.2 All contracts shall be fair, legal and

transparent and agreed payments shall

be made in timely manner.

☒ Yes

☐ No

☐ OFI

Noted and verified contract agreement with

landowner had been implemented with

mutual benefits to both parties.

Criterion 4.6.4: Contractor

4.6.4.1 Where contractors are engaged, they

shall understand the MSPO requirements

and shall provide the required

documentation and information.

☐ Yes

☐ No

☐ OFI

Not applicable as no contractors being used.

4.6.4.2 The management shall provide

evidence of agreed contracts with the

contractor.

☐ Yes

☐ No

☐ OFI


4.6.4.3 The management shall accept MSPO

approved auditors to verify assessments

through a physical inspection if required.

☐ Yes

☐ No

☐ OFI


4.6.4.4 The management shall be responsible

for the observance of the control points

applicable to the tasks performed by

the contractor, by checking and signing

the assessment of the contractor for

each task and season contracted.

☐ Yes

☐ No

☐ OFI





MSPO MS 2530-3:2013

August, 2019


7.3 SUMMARY OF FINDINGS

Principle 1: Management Commitment and Responsibility

Criterion 2: Internal audit


1 Internal audit shall be planned and

conducted regularly to determine the

strong and weak points and potential

area for further improvement.

1

☐ Yes

☐ No

☒ OFI

Sare Plantation documented in the SOP that

internal audit will be held annually.

An IA was held on 18 02 19 (with Report given

on the same day). Doc ref:

SPSB/MSPO/IA/19/01 (Audit checklist).

Internal Audit Report Doc SARE/MSPO/IA/05.

Objective of the internal audit was to assess

SP preparatory readiness for MSPO

Certification Audit. Principles 1 to 6 of the

MS2530-3:2013 was audited. 19 non-

compliance items were recorded (mainly on

site audit criteria).

Audit included documentation review and

Site Assessment.

Noted in the Audit Report that most of

required action had been taken.

However no corrective action report (CAR)


taken.

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.

☐ Yes

☐ No

☒ OFI

Internal Audit Procedure is re-documented

as Doc ref: SPSB/MSPO/SOP/19-013: Arahan

Kerja Audit Dalaman dated 28 04 2019.

Review the document with the following

contents:

Objective

Rujukan

Definisi

Carta Aliran Kerja

Lampiran

Audit results held for IA done on 18/02/19 was

well documented and evaluated; corrective

actions taken mainly on 16 03 2019 and the

rest 01 04 2019 respectively.



taken

Principle 2: Transparency

Criterion 1: Transparency of information and documents relevant to MSPO requirements


2 Management documents shall be

publicly available, except where this is

prevented by commercial

confidentiality or where disclosure of

☐ Yes

☐ No

☒ OFI

Complain and Grievances form is available

at site office and complain/grievances being

lodged are filed in the folder Complain and

Grievances SARE/MSPO-08. The latest




MSPO MS 2530-3:2013

August, 2019


information would result in negative

environmental or social outcomes.

complain/grievance recorded was on

15/03/2019.

Lists of Publicly Available Documents that has

been approved and signed by the

Managing Director can be found in the

folder SARE/MSPO/Social/File no 1.

Lists of Publicly Available Documents needed

to be referenced and dated.

Criterion 2: Transparency method of communication and consultation

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.

☐ Yes

☐ No

☒ OFI

List of the stakeholders are documented in

SARE/MSPO/Social/File no 1.

Complain and Grievances are recorded in

the complaint and grievance folder with the

earliest lodged was on 05/02/2019 and the

latest was on 15/03/2019.

However, there are no records of

undertaking in resolving the issues stated in

the complaint and grievance forms.

Principle 4: Social Responsibility, Health, Safety and Employment Condition

Criterion 1: Social impact assessment (SIA)


1 Social impacts should be identified and

plans are implemented to mitigate the

negative impacts and promote the

positive ones.

☐ Yes

☐ No

☒ OFI

Social impacts and plans are documented

in the file reference no SARE/MSPO-09-1a in

the folder MSPO/Social/ File no 1. It was

reviewed and signed by the top

management on 11/03/2019.

However, there are no date provided as to

the implementation of the plans or action to

be taken to mitigate some of the issues

stated in the plans.

Criterion 2: Complaints and grievances

5 Complaints and resolutions for the last 24

months shall be documented and made

available to affected stakeholders upon

request.

☐ Yes

☐ No

☒ OFI

Complaints has been made through the

complaints and grievances form with the

earliest entry at 05/02/2019.

However, the undertaking and the date to

resolve the issues have not been

adequately recorded.

Criterion 4: Employees safety and health

K. 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

☐ Yes

☐ No

☒ OFI

Two-way communication between the

management and employees are recorded

using Complaint and Grievances Form and

Workplace Inspection Form.

However, there are inadequate records of

remedial actions taken although there are

suggestion/comments written in the forms.

Criterion 6: Training and competency




MSPO MS 2530-3:2013

August, 2019


2 Training needs of individual employees

shall be identified prior to the planning

and implementation of the training

program in order to provide the specific

skill and competency required to all

employees based on their job

description.

☐ Yes

☐ No

☒ OFI

Viewed Training Need Analysis was found to

be lacking that required a more

comprehensive documentation and should

be appropriately referenced.

7.4 CONCLUSION BY LEAD AUDITOR; 12 06 2019: [end day of Stage 2 Assessment]

No of “NO”: Non-Conformance Nil

No of “OFI”: Opportunity for

Improvement

8

Report Summary & Recommendations

Sare Plantation preparation for Certification improved tremendously from Stage 1 to Stage 2. This is

especially evident during the field audits whereby interviews were held with stakeholders. Workers

interviewed during Stage 2 were noted to have better understanding of MSPO principles and requirements.

Overall, although Sare Plantation had opted to get certified under MSPO MS2530-3:2013 only recently,

their investment & commitment to achieve compliance to all Principles & criteria is commendable. SP had

demonstrated that it had generally satisfied the requirement of certification under this MSPO Standards.

It is therefore recommended that subject to closure of all OFI and approval of the Final Audit Report, Sare

Plantation Sdn Bhd be certified under MSPO MS2530-3:2013.

Lead Auditor: Acknowledged by Auditee Name Job Title

Wilfred S Landong Sare Plantation Sdn Bhd Wong Hua Ting Managing Director

Signature/Date:

12 06 2019 Signature/Date: 12 06 19




MSPO MS 2530-3:2013

August, 2019


7.5 CORRECTIVE ACTION REPORTS [CAR]

The following Corrective Action Reports were raised on 12 06 19

1. CORRECTIVE ACTION REPORT (NC/OFI) No. 1 of 8 Date: 12 06 2019

1 FINDINGS To be completed by Lead Auditor

Standards

MSPO MS2530-3:2013 Reference

SP/AU/ST2/06/19

Process, Area

Principle

:

1 Criterion

:

2 Indicator 1 Management Commitment & Responsibility.

Noted in the Audit Report that most of required action had been taken.

However, no corrective action report (CAR) was raised to document closure of action taken.

2 CLASSIFICATION To be completed by Lead Auditor

Major Non-conformity Minor-nonconformity

Opportunity for Improvement (OFI) ☒

Type of follow up

Document review (off-site audit and may be charged)

On site audit (effort required will be charged)

Date

12 06 2019 Remarks: (if any)

3 CONFIRMATION To be completed by Company

Finding + classification is correct Yes No

Comments: (if any)

4 ROOT CAUSE(S) of NC / OFI To be completed by Company

Remarks:

CAR is not issued and printed out

5 CORRECTIVE ACTIONS TAKEN To be completed by Company

Remarks:

CAR raised and closed on 24 06 2019. CAR submitted and enclosed.

Date 24 06 2019 Name/Job of Management Rep Wong Hua Ting

Managing Director

Signature:

6 CLOSURE of NC / OFI To be completed by Lead Auditor

Remarks / Evidence:

Viewed and noted CAR documented & closed out.

Corrective Actions taken to close this NC or OFI has been implemented and found acceptable

Yes No

Confirmed by:

Wilfred S Landong

Lead Auditor

Date:25 07 19




MSPO MS 2530-3:2013

August, 2019




Standards


SP/AU/ST2/06/19

Process, Area

Principle

:

1 Criterion

:

2 Indicator 2 Management Commitment & Responsibility.

Audit results held for IA done on 18/02/19 was well documented and evaluated; corrective actions taken mainly

on 16 03 2019 and the rest 01 04 2019 respectively.

However, no corrective action report (CAR) was raised to document closure of action taken




Type of follow up



Date




Comments: (if any


Remarks:

CAR is not issued and printed out


Remarks:

CAR raised and closed out on 24 06 2019. CAR submitted and enclosed as evidence.


Managing Director

Signature:


Remarks / Evidence:

Viewed and noted CAR documented & closed out vide evidence submitted.


Yes No

Confirmed by:

Wilfred S Landong

Lead Auditor

Date:25 07 19




MSPO MS 2530-3:2013

August, 2019




Standards


SP/AU/ST2/06/19

Process, Area

Principle

:

2 Criterion

:

1 Indicator 2 Transparency of information and documents

relevant to MSPO requirements.

Lists of Publicly Available Documents that has been approved and signed by the Managing Director can be

found in the folder SARE/MSPO/Social/File no 1.

Lists of Publicly Available Documents needed to be referenced and dated.




Type of follow up



Date




Comments: (if any)


Remarks:

No document No in Publicly available documents


Remarks:

Publicly available doc with doc no SPSB/MSPO/PAD/10/01 REV 00 DATED 22 06 2019 was created.


Managing Director

Signature:


Remarks / Evidence:

Noted and verified evidence submitted by SP


Yes No

Confirmed by:

Wilfred S Landong

Lead Auditor

Date:25 07 19




MSPO MS 2530-3:2013

August, 2019




Standards


SP/AU/ST2/06/19

Process, Area

Principle

:

2 Criterion

:

1 Indicator 3 Transparency of information and documents

relevant to MSPO requirements.

Complain and Grievances are recorded in the complaint and grievance folder with the earliest lodged was on

05/02/2019 and the latest was on 15/03/2019.

However, there are no records of undertaking in resolving the issues stated in the complaint and grievance

forms.




Type of follow up



Date




Comments: (if any)


Remarks:

The grievance and complaint already resolved but not documented


Remarks:

Grievance & complaint about no PPE had been addressed and closed on 10 02 2019 as per receipt for PPE doc

no SPSB/MSPO/SHC/F/002

Grievance & complaint about lack of training had been addressed & closed on 30 04 2019 according to training

record and photos. Evidence enclosed with this submission


Managing Director

Signature:


Remarks / Evidence:

Evidence all verified, noted, received. All action on closures taken


Yes No

Confirmed by:

Wilfred S Landong

Lead Auditor

Date:25 07 2019




MSPO MS 2530-3:2013

August, 2019




Standards


SP/AU/ST2/06/19

Process, Area

Principle

:

4 Criterion

:

1 Indicator 1 Social Impact Assessment.

Social impacts and plans are documented in the file reference no SARE/MSPO-09-1a in the folder MSPO/Social/

File no 1. It was reviewed and signed by the top management on 11/03/2019.

However, there are no date provided as to the implementation of the plans or action to be taken to mitigate

some of the issues stated in the plans.




Type of follow up



Date




Comments: (if any)


Remarks:

No implementation/monitoring timeline in Social Improvement plan


Remarks:

Social improvement plan with doc no SARE/MSPO/09/1a Rev 01 dated 24 06 19 has been established


Managing Director

Signature:


Remarks / Evidence:

Received, noted & verified doc no SARE/MSPO/09/1a Rev 01 dated 24 06 19. OFI can be closed out


Yes No

Confirmed by:

Wilfred S Landong

Lead Auditor

Date:25 07 19




MSPO MS 2530-3:2013

August, 2019




Standards


SP/AU/ST2/06/19

Process, Area

Principle

:

4 Criterion

:

2 Indicator 5 Complaints & Grievances

Complaints has been made through the complaints and grievances form with the earliest entry at 05/02/2019.

However, the undertaking and the date to resolve the issues have not been adequately recorded.




Type of follow up



Date




Comments: (if any)


Remarks:

Grievance & complaint already resolved but not documented


Remarks:






Managing Director

Signature:


Remarks / Evidence:



Yes No

Confirmed by:

Wilfred S Landong

Lead Auditor

Date:25 07 19




MSPO MS 2530-3:2013

August, 2019




Standards


SP/AU/ST2/06/19

Process, Area

Principle

:

4 Criterion

:

4 Indicator 2G Employee safety & Health

Two-way communication between the management and employees are recorded using Complaint and

Grievances Form and Workplace Inspection Form.

However, there are inadequate records of remedial actions taken although there are suggestion/comments

written in the forms.




Type of follow up



Date




Comments: (if any)


Remarks:

Grievance & complaint already resolved but not documented


Remarks:






Managing Director

Signature:


Remarks / Evidence:



Yes No

Confirmed by:

Wilfred S Landong

Lead Auditor

Date:25 07 2019




MSPO MS 2530-3:2013

August, 2019




Standards


SP/AU/ST2/06/19

Process, Area

Principle

:

4 Criterion

:

6 Indicator 2 Training & Competency

Viewed Training Need Analysis was found to be lacking that required a more comprehensive documentation

and should be appropriately referenced.




Type of follow up



Date




Comments: (if any)


Remarks:

Incomplete training need analysis and no doc no on annual training program


Remarks:

TNA dated 01 03 2019 been printed and approved by MD

Annual Training Program doc no SPSB/MSPO/ATP/001 Rev 00 dated 01 03 2019 had been issued and approved

by MD


Managing Director

Signature:


Remarks / Evidence:

Noted, verified and received documented evidence 0n 15 07 19. This OFI can be closed


Yes No

Confirmed by:

Wilfred S Landong

Lead Auditor

Date:25 07 19

Note: All Corrective Action Reports above were closed out on 25 07 2019.




MSPO MS 2530-3:2013

August, 2019


8.0. LEAD AUDITOR CONCLUSION & RECOMMENDATION

Based on the Findings/Action taken by Auditee/Closures above, Sare Plantation Sdn Bhd had been

able to demonstrate generally its compliance to and with requirements of the MSPO MS2530-3:2013

Standard for Oil Palm Plantations & Organized Smallholders.

Therefore, it is recommended that the Initial Certification of Sare Plantation Sdn Bhd be approved.

Signed for & On Behalf of

BQAS Certification (M) Sdn Bhd

Wilfred S Landong

LEAD AUDITOR

Dated: 20 07 2019

9. ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY & CONFIRMATION OF AUDIT FINDINGS

This is to acknowledge and confirm the Audit Visits/Assessments described in this Report and the

Acceptance of the Contents and Findings in the said Audit Report.

Signed for & On Behalf of

Sare Plantation Sdn Bhd

Wong Hua Ting

MANAGING DIRECTOR

Dated: 08 08 2019

10. CERTIFICATION RECOMMENDATION / DECISION [CERTIFIER]

I/the undersigned, being the Certifier, confirm that I have examined thoroughly all contents of the

Report in its’ entirety, including the incorporation of Peer Review comments/report and other related

reports [where applicable and relevant].

I confirm that, to the best of my knowledge the information and conclusions included in this report

have been prepared in compliance with the Standards requirements; and done in good faith and

that the certification decision had been based upon this information.

I, hereby confirm that, Sare Plantation Sdn Bhd be certified and awarded the Certificate under the

Standard MSPO2530-3:2013 [Part 3: Standard for Oil Palm Plantations & Organized Smallholders]

CERTIFIER

MAXWELL S LANDONG

Dated: 25 08 2019

11. DATE OF 1ST YEAR SURVEILLANCE AUDIT AUGUST, 2020




MSPO MS 2530-3:2013

August, 2019

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