MY02238-3 Surveillance 01 Evaluation against RSPO MYNI Requirement of Baturong Palm Oil Mill & Estates, IOI Corporation Bhd Page 1 OILPALM PLANTATION MANAGEMENT SURVEILLANCE REPORT Project Nr: MY002238-3 Certificate Nr: SGS-RSPO/PM-00600 Validity Period: 08/10/2010 – 07/10/2015 Report Ref #: MY002238-3 Surveillance 01 Evaluation Client: IOI Corporation Bhd RSPO membership #: 010-04(O) Web Page: http://www.ioigroup.com/business/busi_plantoverview.cfm Address: Head office: Level 8, Two IOI Square IOI Resort, 62502 Putrajaya Malaysia. Tel: +603-2093 2140 Contact: 1. Mr. Too Heng Liew (Head of Sustainability, Malaysia / Indonesia) 2. Mr. Tee Ke Hoi (General Manager, Lahad Datu Region) Country: Malaysia Plantation Unit being Evaluated IOI Corporation Berhad - Baturong Baturong Palm Oil Mill, Lahad Datu Sabah Total Plantation Area 8,993.93 hectares Company Contact Person: 1. Mr. Too Heng Liew (Head of Sustainability, Malaysia / Indonesia) 2. Mr. Tee Ke Hoi (General Manager, Lahad Datu Region) Address: 1. Locked Bag 228, 43650 Bandar Baru Bangi, Selangor Darul Ehsan, Malaysia. 2. MDLD 5123, 3KM Jalan Segama, Lock Bag No. 15 91109 Lahad Datu, Sabah, Malaysia Tel: 1. Tel/Fax: 03-8947888 2. Tel/Fax: 089-845418 Fax As above Email: 1) [email protected]2) [email protected]
Transcript
MY02238-3
Surveillance 01 Evaluation against RSPO MYNI Requirement of
Baturong Palm Oil Mill & Estates, IOI Corporation Bhd
Table 1: Source and status of FFB (July 2010 – June 2011 )..............................................................................9
Table 2: Current status of individual estate planted areas (in hectares)...........................................................9
Table 3: Rainfall data for the period July 2010 – June 2011 ( mm )............................................................... 10
Table 4: Fresh Fruit Bunch production (MT) from July 2009 to Sept 2011.....................................................11
Table 5: Crude Palm Oil production (MT) from July 2009 to Sept 2011..........................................................11
Table 6: Palm Kernel production (MT) from Nov 2009 to Sept 2011...............................................................11
Table 7: Total crop processed, CPO output and PK Output (in MT)...............................................................12
Table 8: Mean Financial Year OER and KER.....................................................................................................12
List of maps
Map 1: Overview and Location of BOM-PMU.....................................................................................................8
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List of Abbreviations
BOM-PMU
BR1
BR2
BR3
CAR
Baturong Oil Mill Plantation Management Unit
Baturong 1 Estate
Baturong 2 Estate
Baturong 3 Estate
Corrective Action Request
CHRA Chemical Health Risk Assessment
CHRA Chemical Health Risk Assessment
CPO Crude Palm Oil
DID Department of Drainage and Irrigation, Malaysia
DOE Department of Environment, Malaysia
EFB Empty Fruit Bunch
EIA Environment Impact Assessment
EMS Environmental Management System
EPD Environment Protection Department
EQA Environmental Quality Act
ERT Endangered, Rare and Threatened species
ESA Environmentally Sensitive Area
FFA Free Fatty Acid
FFB Fresh Fruit Bunch
FR Forest Reserve
GM General Manager
ha Hectare
HCV High Conservation Value
HDPE High Density Polyethylene
IPM Integrated Pest Management
ISO International Organisation for Standardisation
IUCN International Union for Conservation of Nature and Natural Resources
JCC Joint Consultative Committee
K
KER
Potassium
Kernel Extraction Rate
kW Kilo Watt
m
m3
Meter
metre cube
Mg Magnesium
mm Millimeter
MSGAP-OP Malaysian Standard Good Agriculture Practices-Oil Palm
mt Metric tonne
MYNI Malaysia National Interpretation
N Nitrogen
NGO Non Governmental Organisation
OER Oil Extraction Rate
OSH Occupational Safety & Health
P Phosphate
P & C Principles and Criteria
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Surveillance 01 Evaluation for RSPO MYNI Requirement of
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PK Palm Kernel
POME Palm Oil Mill Effluent
POM-PMU Palm Oil Mill – Plantation Management Unit
PPE
R&D
Personal Protective Equipment
Research and Development Department
RHB Rashid Hussain Berhad
RSPO Roundtable on Sustainable Palm Oil
SaOP Safe Operating Procedures
Sdn Bhd Sendirian Berhad
SEIA Social and Environment Impact Assessment
Sg Sungai
SGS Societe Generale de Surveillance
SOP Standard Operating Procedures
SPC Senior Plantation Controller
StOP Standard Operating Procedures
USECHH Use and Standards of Exposure of Chemicals Hazardous to Health
UMS University Malaysia Sabah
WHO World Health Organisation
yr Year
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Annual Surveillance 01 Report
1.0 Scope of the surveillance
1.1 Certification unit background
This IOI oil plantation in the Kunak-Lahad Datu Region of Sabah, Malaysia is a result of acquisition of
agricultural areas from other companies. IOI began their venture into Sabah by acquiring agricultural
land some planted with cocoa in Sabah which was subsequently cleared and replanted with oil palm .
There has been no new establishment of oil palm plantation within the unit apart from replanting.
Baturong Oil Mill Plantation Management Unit (BOM-PMU) consist of 4 estates namely Baturong 1,
Baturong 2, Baturong 3 and Cantawan and a 30 tonne mill identified as Baturong Oil Mill.
The main assessment of IOI Corporation’s Baturong Oil Mill Plantation Management Unit (BOM- PMU) was conducted by SGS (Malaysia) Sdn Bhd on the 28th September 2009 – 1st October 2009. The primary objective of the exercise was to evaluate current documentation and field practices in sustainable oil palm management of the plantation unit against the Roundtable on Sustainable Palm Oil Principles & Criteria Malaysia National Interpretation, 2008 (RSPO P&C – MYNI). A CAR closeout visit was undertaken on 9th November, 2009 to further verify documentation and seek further clarification on issues raised during the field audit. The main assessment resulted in the issuance 2 Major Corrective Action Requests (CAR), 21 Minor Corrective Action Requests (CAR) and of 6 observations. During the CAR close out visit on the 9th
November 2009, 8 Minor CARs
were closed. The 2 Major CARs were technically closed but the certification body monitored implementation over a period of five months to be absolutely sure of the unit’s performance because of the gravity of the Major CARs. At the end of April 2010, a document review was undertaken to ensure that no infringements had occur in relation to the Major CAR. With no outstanding Major CARs, IOI Baturong Oil Mill was recommended for the certification against the RSPO P&C MYNI requirements and upon approval by RSPO, received the RSPO certificate on the 08 Oct 2010.
The validity of this certificate is over a period of 5 years (08th Oct 2010 – 07
th Oct 2015) subject to
annual surveillance.
This is the evaluation report for the first annual surveillance for BOM-PMU.
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1.2 Organization Chart
Baturong Group Members
General Manager
Mr. Tee Ke Hoi
Baturong Mill MillEngineer In-
ChargeMr. Bruno a/k
Bungkong
Baturong 1 Estate Manager
Mr. Radakarishnana/l Narayanan Nair
Baturong 2 Estate Manager
Mr. Manza Alex
Baturong 3 Estate Act. Manager
Mr. KathiravanSubramaniam
Cantawan Estate Asst. In-Charge
Mr. Maurice Ignatius Sundangit
Senior Mill Manager
Mr. R. Arasu
1.3 Location
The BOM-PMU comprises of four directly managed estates namely Baturong 1(BR1), Baturong 2(BR2), Baturong 3( BR3) and Cantawan Estate and a 30 tonne per hour mill identified as Baturong Oil Mill. The estates supplying the mill are located within the state of Sabah. The Baturong Oil Mill, Baturong 1, 2 and 3 estates are located in the district of Kunak whereas Cantawan estate is located in Lahad Datu district. The location of the estates is presented in Map 1.
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Map 1: Overview and Location of BOM-PMU
1.4 Mill
The Baturong Oil Mill has a processing capacity of 30 tonne per hour. During the July 2010/ June 2011 financial year it processed 185,007.17MT FFB with al Crude Palm Oil (CPO) and Palm Kernel (PK) output of 36,538.884MT and 9 ,197 .140MT respec t ive l y. The mill receives Fresh Fruit Bunches (FFB) from the supply base estates as presented in Table 1 below.
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Table 1: Source and status of FFB (July 2010 – June 2011)
Estate Total Area ( ha ) FFB ( MT )
Baturong 1 2992.87 57,525.41
Baturong 2 2,483.06 55,310.74
Baturong 3 2,066 47,323.53
Cantawan Estate 1,452 24,847.49
Total 8,993.93 185,007.17
1.5 Area Statement
The hectare statement for all estates is presented in Table 2. The total planted area for the four
directly managed estates is 8,306 ha.
Table 2: Current status of individual estate planted areas (in hectares)
BR 1 BR 2 BR3 Cantawan Total
Mature Area
>25 years old
16-25 years
old
2,270 2,350 1,858 1,307 7,785
6-15 years old 0 0 0 0 0
3-5 years old 250 0 0 0 250
Immature Area
< 3 years old ) 271 0 0 0 271
Total planted
area
2,791 2,350 1,858 1,307 8,306
Non-planted
Area
201.87 133.06 208 145 6,879.3
Total 2,992.87 2,483.06 2,066 1,452 8,993.93
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1.6 Rainfall data
The rainfall data is presented in Table 3.
Table 3: Rainfall data for the period July 2010 – June 2011 (mm)
BR 1 BR 2 BR 3 Cantawan
J 192 190.2 169 255
A 213 165 207 198
S 64 88 52 191
O 139 146 101 194
N 219 171 181 168
D 219 118 181 168
J 241 319 265 340
F 178 190 189 357
M 318 201 185 589
A 178 298 287 357
M 375 290 329 324
J 243 113 108 259
Total 2579 2289.2 2254 3408
1.7 Production records
In the July 2010/June 2011 financial year, Baturong Oil Mill processed 185,007.17MT FFB resulting in
a production of 36,538.884 MT CPO and 9,197.140 MT of palm kernel.
During surveillance 01, for the period July 2011-Sept 2011, the mill processed 51,965.91MT FFB
resulting in a production of 10,422.052 MT CPO and 2,598.850 MT of PK.
FFB production Record
The total Fresh Fruit Bunch (FFB) production recorded for the last financial year for all four estates
(July2010/June2011) was 185,007.17 MT. See Table 4 below for FFB production for all estates.
Table 4: Fresh Fruit Bunch production (MT) from July 2009 to Sept 2011
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2009/2010 2010/2011 2011/2012 ( till Sept
2011)
BR 1 66,137.35 57,525.41 16,129.70
BR 2 63,488.29 55,310.74 15,901.49
BR3 58,640.18 47,323.53 14,307.03
Cantawan 23,343.16 24,847.49 5,627.69
Total 211,608.98 185,007.17 51,965.91
Total Crude Palm Oil (CPO) and Palm Kernel (PK) production over the same period are shown in
Table 5 and 6 respectively.
CPO production Record
Table 5: Crude Palm Oil production (MT) from Jul 2009 to Sept 2011
2009/2010 2010/2011 2011/2012 ( till Sept
2011)
BR 1 13,377.517 10,954.037 3,145.423
BR 2 13,845.676 11,166.623 3,235.596
BR3 12,551.122 9,483.634 2,906.905
Cantawan 4842.934 4,934.59 1,134.128
Total 44,617.249 36,538.884 10,422.052
PK production Record
Table 6: Palm Kernel production (MT) from Nov 2009 to Sept 2011
2009/2010 2010/2011 2011/2012 ( till Sept
2011)
BR 1 3,258.037 2,859.132 806.129
BR 2 3,123.556 2,749.296 795.743
BR3 2,890.347 2,353.829 715.170
Cantawan 1,147.110 1,234.883 281.808
Total 10,419.05 9,197.14 2,598.85
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The following table shows the total crop processed, CPO output and PK Output by Baturong Oil Mill
for the respective financial year.
Total Crop processed
Table 7: Total crop processed, CPO output and PK Output ( in MT )
2009/2010 2010/2011 2011/2012 (till Sept 2011
)
FFB Processed 211,608.98 185,007.17 51,965.91
CPO out put 44,617.249 36,538.884 10,422.052
PK Output 10,419.050 9,197.140 2,598.850
The respective financial year mean (average ) oil extraction rates (OER) and kernel extraction rates
are presented in the Table 8 below.
Table 8: Mean Financial Year OER and KER
2009/2010 2010/2011 2011/2012 ( till Sept
2011)
Mean Financial Year
Oil Extraction Rate
21.08 19.74 20.05
Mean Financial Year
Kernel Extraction
Rate
4.92 4.97 5.00
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1.8 Certification details
The BOM-PMU has been assessed and certified as meeting the requirements of RSPO Principles
and Criteria (2007) for Sustainable Palm Oil Production as specified in the Malaysian National
Interpretation (MYNI) (2008). The validity of the certificate (SGS-RSPO/PM-00600) is from 08th Oct
2010 – 07th Oct 2015.
1.9 Description of fruit supply base
Baturong Oil Mill receives FFB from estates within the Unit, namely, Baturong 1, Baturong 2, Baturong
3 and Cantawan Estate. For the purposes of surveillance, the production details from July 2009 to
September 2011 are presented in Table 1 above.
1.10 Time bound plan progress by parent company
The progress on the time bound plan for IOI Corporation Bhd is presented in Appendix 1. As
tabulated, to date, at least five-certification unit has been certified and a few others have undergone
assessment for certification. SGS is of the opinion that IOI has made a good progress and without
any immediate undesirable circumstances, the plan is considered within reach.
TBP is revised to extend 2 units to 2012 instead of 2011. Reasons:
- Preparation of certified unit for other sustainability certification, e.g ISCC
In Appendix 2, the latest development in the IOI Sarawak land issue is updated. IOI was suspended
by RSPO pending a resolution to the land issue in Sarawak.
1.11 Associated smallholders and outgrowers progress towards compliance with relevant
standards
There are no associated smallholders and outgrowers under this unit.
1.12 Contact person
Name 1. Mr. Too Heng Liew (Head of Sustainability, Malaysia / Indonesia) 2. Mr. Tee Ke Hoi (General Manager, Lahad Datu Region
Designation As above
1. Locked Bag 228, 43650 Bandar Baru Bangi, Selangor Darul Ehsan, Malaysia. 2. MDLD 5123 3KM Jalan Segama, Lock Bag No. 15 91109 Lahad Datu, Sabah.
Surveillance 01 Evaluation for RSPO MYNI Requirement of
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2.0 Surveillance evaluation process
2.1 Team members
Evaluation Team
Main audit
Brief CV
Lead Auditor Kishokumar Jeyaraj, has post graduate degree in Forestry and landuse. Is an expert in natural resources management planning, mapping and stakeholder consultation. Has been involved in certification and verification of forestry, environmental and oil palm industries for more than 15 years.
Certification Manager Salahudin Yaacob, MPhil. Salahudin Yaacob has post graduate degree in Environment and Natural Resources management currently head Natural Resources certification programme in SGS Malaysia. Trained as a botanist, the team leader has gathered more than 10 years of auditing especially in the forestry sector. As a lead auditor in forest management and chain of custody of forest products, he is well versed in certification process and management of certification scheme. Undergone formal auditing training under RSPO and involved in at least 20 assessment against RSPO P&C in Malaysia, Indonesia, Thailand and Colombia
Auditor Oi Soo Chin is a graduate in Forestry discipline and undergone lead auditor training under ISO 14000. She has been involved in certification and verification for more than 4 years both in Malaysia and Indonesia.
Auditor Tunku Mohammed Nazim Yaacob is a graduate in Ecology with more than 30 years experience in ecology and wildlife management. Tunku is a trained ISO 14000 lead auditor and expert in landuse and management planning. Has gathered many years experience of auditing in forest management and other natural resources sector at national and international levels. Has attended RSPO Lead Auditor Training Course and conducted a number of RSPO audits in Malaysia and Indonesia.
Evaluation Team
Surv 01
Brief CV
Lead Auditor James S H Ong, B. Agr. Sc is an agronomist by training. He has years experience in the agriculture sector in Malaysia having worked as Assistant Plantation Manager in a number of estates in Malaysia. He is well versed with agrochemical and fertiliser applications. Has undergone ISO and RSPO Lead Auditor training and has been involved in a number of audits on oil palm plantations
Auditor Rick Gregory, M.Sc., has worked in Malaysia for nearly 20 years in the environmental sector. Trained as a forester, he has experience with certification schemes in forestry, including Forest Management Units and chain of custody, and has been involved in several oil palm plantation assessments against RSPO P&C.
2.2 Surveillance 01 Evaluation schedule
Date Visit Notes
4 Oct 2011 Audit travel from Kuala Lumpur to Tawau and thereafter by 4-Wheel Drive Pick-up to Baturong Palm Oil Mill Opening meeting
Briefing by IOI
Scheduling
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Briefing by IOI on response to 2009 Main assessment and close CAR visit Assessment
Document review
Document review
Visit to Baturong Oil Mill
Wastewater treatment,
Historical waste
5 Oct 2011 Visit to: Cantawan Estate
Baturong 1 Estate
Document review
Chemical spray & sprayed
area
Erosion control
‘Weir’ & bridge
Harvesting
Buffer zone
Line site etc
Interview with workers
6 Oct 2011 Visit to:
- Baturong 3
- Baturong 2
Document Review
Chemical spray
EFB applied area
Linesite , contractor linesite &
Creche
Chemical storage, workshop,
recycle & scheduled waste
area
Riparian zone
Conservation Area
Interview with workers
7 Oct 2011 Finalising Report
Closing Meeting
Closing meeting at Baturong
Palm Oil Mill
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3.0 Surveillance findings
The surveillance findings are presented as an addition to the original assessment findings. This is
intentionally done to provide background information for the closure or maintenance of CARs and
Observation raised in the main assessment. New observations and CARs are also raised at the
indicator levels and presented in the same table. It should be noted that similar to the main
assessment, while the non conformance raised refer to the MYNI indicators, findings made during
surveillance is summarized and presented only at Criteria level.
For further clarity of the findings made and issues raised in this surveillance report, reference to the
Criterion 1.1 Oil palm growers and millers provide adequate information to other stakeholders on environmental, social and legal issues relevant to RSPO Criteria, in appropriate languages & forms to allow for effective participation on decision making.
MA2009
Documented procedures exist for stakeholder information request at the corporate
and estate levels. Records of requests and responses were viewed at the estate level. Website provides adequate information on their plantation undertakings, corporate social responsibilities and commitments to sustainability. Information can be viewed at the following site,
Stakeholder lists for all individual estates and mill is available on site. There is a mechanism to ensure that documents are publicly available, as stipulated in the individual estate management plans. The mechanism for information request available at two different levels namely estate and corporate level. The mechanism for information request is clearly outlined in the estates’ Social Management Plan.
Response to request for information at the HQ level is found to be weak (Observation 001). The routing of the call requesting for information was time consuming and no identified person was available to answer the request for information. The company has a Corporate Communication Manager, Ms. Karen Liew contactable through [email protected].
SA2011
Third party information request procedure has been revised by IOI Corporation Berhad. The procedure has been included inside each estate and mill Social Impact Assessment and Management Action Plan
Stakeholder requests are made either by checking the IOI website or writing a letter to the estate or making a call to the estate office. A flowchart designates how IOI will address the issue by meeting with the Social Liaison Officer or Estate Manager. The appropriate personnel will handle the complaint or request and the stakeholder informed of the outcome within 5 working days.
(Observation 01 – Closed)
Criterion 1.2 Management documents are publicly available, except where this is prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes.
Criterion 2.1 There is compliance with all applicable local, national and ratified international laws and regulations.
MA2008 Register of legal documents is available and copy of laws immediately relevant to estate and mill operations were on hand at the unit offices.
There is evidence of compliance with legal requirements pertaining to:
- Estate and mill operations
- Occupational health and safety
- Environmental management
- Land titles
Hard copies of laws, licences and permits were viewed at each estate office. Standard Operating Procedures for both mill and estate are guided by legal requirements. Reference to relevant legal requirements is made for all operational activities. The documented system is being further improved to incorporate more estate specific legal requirements.
However it was observed during the assessment that under aged dependants of foreign workers helping parents in the field without going through an apprenticeship or legally equivalent program. Also, workers whose residency status is currently being formalised are not insured under the workers’ compensation act or equivalent alternative scheme (Major CAR-01).
A revisit was conducted where it was observed that the company has documented
a policy statement for no child labour dated 5th
November 2009 endorsed by the Group Plantation Director. Effort to implement the policy is substantiated with the following documents/actions:
i. Letter pertaining to HUMANA special class for children age between 13-17 years old (12/04/2010).
ii. Memo to contractors pertaining to prohibition of underage workers
(01/10/2009)
iii. Memo workers contractors pertaining to prohibition of underage workers
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(01/10/2009)
iv. Letter to workers pertaining to religious classes for young person between 13-17 years old (12/4/2010).
v. Underage person control checklist (November - December 2009, January - April 2010)
vi. Mandore record book (January - April 2010)
vii. New registration workers checklist (December 2009, January - April 2010)
viii. Staff Monitoring record book (November 2009, January 2010 and March 2010)
ix. Assistant monitoring record book (November 2009, January 2010, March and April 2010)
x. Tractor driver record book (October 2009, December 2009, March and April
2010)
It was also observed that all illegal workers which are in the process of being legalised will be insured. RHB Insurance has agreed to incorporate Automatic Addition & Deletion of Workers Clause under the Foreign Worker Compensation Scheme policy and IOI has to provide monthly declarations to the insurance company. Once the workers are legalised, they are required to be insured under Jerneh Insurance. Documented evidence includes the following:
i. Insurance policy issued till the end of April, 2010.
ii. List of automatic addition of new workers pending legalisation till the end of
April,2010
iii. Verification of name lists provided by estate with RHB the insurer till the end of April, 2010.
Monitoring of implementation of no child labour policy and insurance of workers yet to be legalised was undertaken by the certification body until end of April, 2010.
With the above actions taken and no evidence of underage labour observed on site,
Major CAR-001 is closed.
The operating unit has yet to undertake monitoring of legal compliance because the system is just being developed (Minor CAR-02).
SA2011 The BOM- PMU has copies of the relevant applicable local, national and ratified international laws and regulations.
The ‘Sustainability Team:
1) tracks the change in the law,
2) assess current practices and submit suggestions for changes to senior company management.
The person responsible for monitoring the changes and communicating it to the group remains the ‘Sustainability Team’ who carry out internal audit for each estate
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and mill Each estate updates the list of relevant laws and regulations that are required to maintain various legal permits. For example, list of licenses and permits for Baturong 1 Estate were viewed and found to have been renewed. Updated list of all permits; records of payments; copies of permits with expiration dates were highlighted.
As for the workers, under the Govt 5P programme, all workers without passport have been registered with the programme to get them legalised. There were 92 workers involved of which 54 Indonesians and 38 Filipinos in the legalisation program.
(Minor CAR 02 – Closed)
Criterion 2.2 The right to use the land can be demonstrated, and is not legitimately contested by local communities with demonstrable rights.
MA2009 Evidence of legal ownership of the land is maintained in individual estates’ offices.
The land titles for the estates allow cultivation of oil palm, cocoa &/or and agricultural crop of economic value. (E.g. Baturong 1&2: 245352578, district of Kunak, locality of Tinkayu, 5618 ha).
Overall, it was verified that the estates occupation and operation comply with the terms of the land title. All estates have their boundary marked with boundary markers. IOI has a special mapping team with accurate GPS equipment for boundary verification. The boundary markers however have not been approved by land authorities.
The unit does not have any land disputes recorded. But a system to resolve land disputes is documented in ‘Grievance Procedure for Land Owner Issues’ which is detailed in the social management plan for estates and mill.
SA2011 No change in legal land ownership. The estate boundaries are clearly demarcated on the ground. The company maintained series of maps for each estate identifying each field / block.
Legal ownership intact and no record of new infringement or land claims by local communities.
Criterion 2.3 Use of the land for oil palm does not diminish the legal rights, or customary rights, of other users, without their free, prior and informed consent.
MA2009 Currently, there are no claims on legal or customary rights exist for the estate. Customary use of land for community purposes (places of worship, burial grounds, and archaeological site) has not been diminished.
Currently, there was no disputes with local communities exist. The unit has a system for mapping land disputes if any arises.
SA2011 Customary use of land for community purposes have been identified either on maps
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(places of worship, burial grounds, and archaeological site) and maintained.
Criterion 3.1 There is an implemented management plan that aims to achieve long-term economic and financial viability.
MA2009 Planning documents covering the next 5 years describing the planting material, crop project and yield trends, mill extraction rate, and budgeted production costs are available for each estate and mill. The budget also projects income from crop based on area planted and age, using generic yield potential tables for the planting material and the environmental category of the site. All plans are also reviewed annually.
The unit does not have a clear and systematic basis for determining budgetary allocations for soc ia l , environmental /biodiversity conservation and occupat iona l health and safety have no clear basis (Observation-002).
SA2011 Annual budget projection was available for the mill and each estate. Budget prepared are based on the estimate of crop production. Budget allocation was made for supervision, labour, upkeep & cultivation, collection etc.
RSPO budget has been allocated inside estates and mill annual budget. The RSPO budget was divided into 4 categories:
a. GC 40 – Environmental/Biodiversity
b. GC 41 - Social
c. GC 42 - Occupational Safety and Health
d. GC 43 - Training and Promotion
Replanting programme is reviewed annually. Report showing the replanting schedule for each estate is available.
Criterion 4.1 Operating procedures are appropriately documented and
consistently implemented and monitored
MA2009 Standard operating procedures for both mill and estate (StOPs) exist. This does not cover all estates activities for example waste disposal (Observation-003). Standard operating procedures (StOP) have been drafted for the major activities related to crop production, oil extraction, optimal use of equipment and safe working practices on the estates and at the mill. However, StOPs for environmental activities such as: the final disposal of management, application of POME to land in flat beds and implementation of IPM are examples where
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the StOPs give objectives for the tasks, but not adequate guidance on how the tasks are to be undertaken to achieve those objectives. (See 4.1.2 below on insufficient monitoring of the StOPs themselves.)
Records of completion are maintained for work assigned. Lapses by individual workers in following StOPs when noted by supervisors are noted and instructions given.
However, there is insufficient records of monitoring and weak mechanism to undertake such monitoring of StOPs (Minor CAR-003). Currently, monitoring is opportunistic rather than systematic. The monitoring is important as part of system to evaluate:
• the effectiveness of the StOPs themselves. This has allowed weak
or insufficient StOPs to continue to be used in the field. There is no monitoring that would give effective notice to higher management levels that the StOPs concerned need to be reviewed and put through cycles for continued improvement. (See 4.1.1 above for examples); and
• how consistently workers comply with the StOPs – examples of poor compliance includes selective spraying along riverine areas, and trends in work performance
SA2011 StOPS were reviewed and revised in July 2011.Some of the StOPs reviewed were as follows:
- Manual Fertilizer Application for Immature and Mature area.
Land Preparation for New Planting and Replanting
Planting Leguminous Cover Plant
Weeding
Inspecting and Maintaining Oil Traps
Road Maintenance
Pruning
(Minor 03 – Closed)
Procedures were documented at group level and then translated into StOPs for individual estates where needed. Procedures exist for most operations both in the estates and mills in the form of written documents. The StOPs covering elements mentioned in RSPO Criteria 4.2-4.8 are sufficient to ensure consistent implementation. The StOPs reflect best industry practices as detailed in IOI’s agricultural policy document.
Regular Training on StOPs of all field operations have been carried out regularly e.g. StOP for herbicide spraying. Training record was referred.
Evidence of proper circle and path spray as well as selective spraying in the field can be observed in each estate during the surveillance audit.
Records of monitoring of actions taken available and maintained. Results of monitoring are used to revise StOP.
SOP for landfill/ waste disposal is now available. The SOP signage has been erected at each landfill of the estates. (Observation 03 – Closed)
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Criterion 4.2 Practices maintain soil fertility at, or where possible improve soil
fertility to a level that ensures optimal and sustained yield.
MA2009 Fertilizer inputs are monitored through annual fertilizer application. This practice appears to be consistently implemented over all the estates visited, and has resulted in acceptable crop yields.
A programme is in place that takes annual nutrient samples from both leaf tissue and soil. These are used to assess the nutrient state of the palms and their soils, a n d used to guide subsequent fertiliser needs.
EFB, boiler ash and POME are applied and records monitoring the amounts applied and areas applied to, are available. Because of topography, EFB has been selectively applied to the flat areas where vehicle access is possible. Some of these areas were poorly drained, allowing the wet EFB to support breeding flies (Minor CAR-004). Since such low lying areas already have a relatively high soil organic content and the flies cause a nuisance to neighbouring housing areas, placing EFB in such areas could be considered an exercise to reduce costs for the disposal of a waste material rather than beneficial use of EFB as a soil conditioner in areas where it is more needed. Also the accelerated break down of EFB in wet areas would NOTsupport carbon sequestration. Instruction has now been given to avoid application of EFB to wet areas.
Observed during the re-visit that monitoring activities at EFB Mulching and Frond Mulching areas have started and actions have been recorded. The application of EFB in unsuitable sites (wet areas) has been discontinued (Minor CAR-004 is closed).
Zero-burning policy applies to the whole of unit. Monitoring for compliance with the policy is made on a continuous basis. Use of fire to sterilise fields at replanting is no longer done. Currently, old palms are felled, chipped and then buried in a trench between the new planting row
SA2011 The IOI R&D takes both foliar and soil samples for analysis, and then prepares the fertiliser recommendation in the agronomic report. The application of the fertiliser in the field is monitored through daily costing book, monthly and annually through the accounts. Fertiliser applied in each field are recorded and reported in ‘Summary of Fertiliser Requirement’ for each estate Palms along riparian has been being surveyed and counted (July 2011) to reflect actual palms stand of the block/field to improve correct amount of fertiliser sent to the block/field for the application of fertiliser. EFB application in the field is quantified and map where application is place is available. They are mainly applied on the slope areas. Map and records showing area of application is available.
Criterion 4.3 Practices minimise and control erosion and degradation of soils.
MA2009 Individual estates have ‘Soil Erosion Prevention Plans’ in their ‘Environmental and
Impact Assessment and Management Action Plans, 2007-2012.’
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Although documents for practices exist, application of erosion controls are not consistent throughout the estates. Soil loss in some blocks indicates weaknesses in:
1. Identifying slopes where terraces would have been appropriate
2. Identifying and monitoring areas with continuous high potential for soil erosion problems
3. The maintenance of non-competitive ground cover
4. The effective maintenance of top bunds to control erosion on terraces
5. The provision of StOPs to systematically monitor for erosion loss from fields and provide documented guidelines for mitigating response
6. The maintenance and restoration of riparian areas.
Evidences of historical erosion control were observed through terracing. Current practices include frond stacking, silt trapping, cover crop establishment and tolerance of soft weeds in the inter-rows. Inconsistent stacking of frond heaps along contours has resulted in poor erosion control on slopes (Minor CAR-005).
The documents required for road maintenance are available. Each estate has a programme, budget and timetable for implementation of work. Roads were observed in good condition and effective for crop evacuation. Surface run offs from the road were diverted back to fields so that the soil are retained.
Numerous practices are undertaken to protect erodible soils. These include:
• leguminous cover crop applied in new planting areas;
• once the leguminous cover crop begins to die back, soft weeds and ferns
are tolerated in inter-rows, and competing woody plants removed; conservation terraces where constructed at the time of planting with stop bunds;
• fronds are stacked on the lip of terraces, but contour stacking is not consistently implemented on other slopes;
• road design generally minimises water run-off and soil erosion, with wash- out drains returning nutrients and soil mass back to pits in the fields; and
• the banks of some waterways are vegetated to help retain soils.
Inconsistent field practices have lead to chronic soil and nutrient loss by erosion. Activities include:
• Poor planning for slope conservation through use of terraces on slopes > 15°.
• No stop bunds to control run-off water diverted onto terraces and currently eroding the terraces, Erosion along stream banks with siltation down-stream could have been minimised if riparian vegetation had been effectively managed.
• Inconsistent terraces, ‘Stop bunds’, and ineffective maintenance and restoration of riparian areas (Minor CAR-006).
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SA2011 Good ground cover exists in the inter-rows and in replanting areas in in terrace or non-terrace areas in Baturong 1 and Baturong 3 Estates. . Palm fronds are placed in alternative rows to prevent soil erosion in non-terrace areas. (Minor CAR 05 - Closed)
In Baturong 1 , maps and location of road maintenance are available. Documented evidence of payment for road maintenance work were viewed.
Road maintenance carried out at Baturong 3 Estate with side drains and silt traps on steep roads.
But in Cantawan, evidence of gully erosion was forming along the road in Field 93H due to water –runoff from the road. (Minor CAR 24 – Raised)
Some areas are not planted with palms due to steep slopes. These are mainly in areas with slopes greater than 25°. In Baturong 1 Estate, an area of 2-3 ha in Block 92D was left to be vegetated naturally due to its steepness.
At Baturong 3, steep slope areas (i.e. Block 93 I, Division 4) are planted with sentang trees as a natural cover. Based on slope report, most of the land is between 0-25 degrees. Evidence stop bunds, silt pit, side drain diversion in estate field with hilly area. (Minor CAR 06 – Closed)
New terraces are being constructed in Baturong 1 Estate during the replanting phase. These terraces are constructed according to the Slope SOP to accommodate future mechanisation of harvesting. Cover crops are well established to prevent soil erosion.
There are also evidences on hilly fields in Cantawan and BR 3 that roadside slope are bare due to herbicide spray or freshly cut that exposes soil to possible erosion. (Minor CAR 25 – Raised )
There is no peat soil in this plantation Unit.
Criterion 4.4 Practices maintain the quality and availability of surface and
ground water
MA2009 An outline for an Environmental Risk Assessment (ERA) and Environmental Management Plan (EMP) is available for each estate. The documents identify planning actions for waterways from > 40 m to < 3 m width. The banks of some waterways – mostly major rivers subject to periodic flooding, have been identified, left free of palms and allowed to retain permanent vegetative cover. It is also noted that natural waterways are included in maps of the estates.
On the estates, management and staff are aware of company requirements to avoid spraying and applying fertiliser along stream banks and a programme to mark riverine buffer has begun.
Although there is an on-going programme for the protection of water courses, the procedures for the following activities are found to be inconsistently implemented :
• Demarcation of riparian buffers in the field,
• Erection of notices reminding field staff of the proscriptions in the reserves,
• The clearance along river banks during replanting, the planting of
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ground cover and establishment of new crop.
• Implementation of estate levels plans for the establishment of riparian buffer zones at or before the next replanting.
Hence a Minor CAR-007 is raised.
During the revisit, it was observed the weaknesses pointed out above have been taken into consideration and the programme implementation has been modified accordingly. Banks planted with oil palm during replanting would be re-established as buffer zones immediately. The implementation of buffer zone establishment and management must be audited during the next surveillance visit. (Minor CAR-07 is closed).
It was observed at the time of main assessment that weirs are being used in Cantawan Estate. It is understood that these are temporary measures, necessary to evacuate crop after flood damage to bridges (Observation 04).
Outgoing water into natural waterways are being monitored for water quality. Sample points are mapped and a schedule for sampling has been drawn up. The capacity to undertake water quality monitoring is being addressed.
Rainfall is being monitored and records are kept. Meters to monitor water abstraction and supply to the mill have been installed and water usage is being monitored.
Appropriate mitigating measures will be implemented following consultation
with relevant stakeholders. Documents concerning a water management plan
viewed. No water drainage into protected areas.
Aspects of water management are also covered under the Water Management Plan for Baturong unit, focusing principally on meeting legal requirements. This document covers: conserving sources for abstraction; managing riparian areas; contamination by estate and mill activities; monitoring ground and surface water quality, and consumption of water. The results from monitoring water quality are kept, but not used to monitor trends. No threshold levels have been set for management to response
Documented water management plan viewed but this does not capture the full aspects of water management in both mill and estates, and monitoring data not used to improve management (Minor CAR-008).
SA2011 Buffer zones are generally well established along riparian areas.
Riparian reserves are well preserved with good vegetative cover and maintained to avoid any soil erosion.
Riparian reserves in both Baturong 1 and 3 Estates are well marked with red-white boundary trees or post and maintained. In Baturong 1 (Block 2008G) along sections adjacent to Sg. Tingkayu, no new palms have been planted after the last harvest to protect the river boundary vegetation (approx. 20-25 m wide). Appropriate signage stating that no spraying is allowed is evident and vegetation dominates the reserve area with more trees closer to the river bank. On Sungai Patah Hati, the riparian area
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is being supplemented by planting of fig trees to stabilize the soil and provide a food source for wildlife. However, an observation was made at Baturong 3, Division 3, Block 93B where the marked boundary palms were circle-sprayed. The boundary palms were clearly marked for protection and next to a water source. ( Observation 07 – Raised) After making field observations of the spraying in the buffer zone, auditors found evidence of management action already taken to mitigate the issue. A warning letter dated July 9, 2011 was signed by the responsible parties to recognize that each employee received proper training but failed to stop spraying in buffer zone areas. The letter was signed by the mandore and 8 sprayers to acknowledge the reason for the warning letter. ( Observation 07 – Closed ) Water sampling is carried out regularly according to schedule. Monitoring is done according to a SOP and chemical analysis according to standard protocols. Water quality monitoring records were viewed and selected sampling points visited in the field. Water usage for the mill and estates were viewed to as evidence as part of the Unit water management plan. In BR 3, monitoring of water usage to line site was initiated in Sept 2011. For Sept usage volume of 1,834.40m3 was recorded with an average usage per day 61.15m3.per household. In BR 2 , water quality of the streams are monitored every 6 months along Stream A & B. 400 gallon ( 1,820 litres ) tanks were purchased and distributed to each household ( 162 tanks were distributed on 24/3/2011). Piping works are in progress and the water treatment plant site along Stream A has been identified. Water sent from the mill for domestic use has been monitored since June 2011. Water usage recorded are as follows: June :13,600m3, July: 17,600m3 ,Aug: 20,000m3,Sept : 23,280 m3
(Minor CAR-08 – Closed)
During the visit to the water treatment plant, flow meter recorder, Latif , at the plant at the mill do not have proper record book to record the reading. (Observation 08- Raised )
There are no significant protected areas bordering the estates. However, in Baturong 3, a small protected area of 15 ha is surrounded by the estate that serves as the main water catchment area for the entire estate.
There is no drainage from plantation water sources into the catchment area that is designated as a HCV4 forest.
During the surveillance audit it was confirmed that in Cantawan estate, the weir was in fact a low-water crossing bridge ( Irish –bridge ) that is used to access the other side without damaging the base of the stream. The management realising the possibility of the ‘weir’ acting like a bund during extreme drought has since demolished the ‘weir’ and a wooden bridge is being built as an alternative. (Observation 04 – Closed)
Rainfall data for all the estate is available
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Criterion 4.5 Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate Integrated Pest Management (IPM) techniques.
MA2009 Elements of biological and other non-chemical control are being practiced in the estates. These include plans, maps and StOPs for: planting host plants for the predators of crop pests; tolerance of soft weeds in the inter-row and not spraying in riverine buffer areas, etc.
In all the estates evaluated, elements of implementation of IPM have been observed. Pest and weed infestation is recorded as minimal in these estates. The biological control being promoted and the use include barn owls for rat control, planting of beneficial predator and parasitoid host plants e.g. Tunera subulata, Cassia cobannensis, Antigonon leptopus, Averrhoa carambola.
Monitoring for bagworm occurrence and planting of beneficial plants in such area are being carried out. Rat poisons were used in new planting areas, but replaced with non-chemical controls once the young palms are established.
The extent of implementation of the various activities of the IPM is being monitored. The estates have procedures to monitor for the presence and location of pests and the current severity of their effects.
It was however noted that supervising staff responsible for the census for crop damage have not fully understood the StOP. After applying rat bait, old rat damage to fruit continued to be counted together with any signs of recent damage. Rat
damage to crop was thus over-estimated, resulting in excessive use of rat bait. This excessive application was not noted, indicating a failure to monitor the effect of chemical application for IPM. It is therefore deduced that though the guidelines on IPM in place and implementation is in progress, however there is inconsistency in evaluating the need for these actions. E.g. Control of rats.(Minor CAR-09).
Records are maintained of types and dosage of pesticides used, the blocks where they have been applied, and the dates of application. Pesticide usage is monitored and records show the usage as units per ha. The practice appears to be consistent in the areas sampled.
SA2011 The estates carry out daily rat damage surveys through the use of forms IC1 and IC2 (Daily Infield Grading Report) that record both old and new/fresh rat damage percentages. Rat baiting programs are activated when the 5% rat damage threshold is reached. Both rat baiting and rat trapping techniques are used. The IC forms separate out old and new/fresh rat damage to avoid overestimating rat damage. At the mill FFB collection ramp, a FFB Quality Report will record the rat damage. This daily recording accounts for both old and new/fresh rat damage from all FFB delivered from each estate. The information will be transferred to the Daily Infield Grading Report to pinpoint harvesting blocks that are affected by rat damage.
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An example of the report: Baturong 01; Block No. 1 on Oct. 3, 2011 -- 326 bunches (3 unripe, 323 ready) - 12 bunches with new rat damage = 3.7% -- 17 bunches with old rat damage = 5.2% Based on chemical use trends and stock card records at the estates, rat baiting is not carried out indiscriminately. Each rat baiting program is a result of daily records of rat damage that target specific harvesting blocks to conduct a campaign according to StOP protocols. Baturong 1 Estate: Monitoring of rodenticide used is recorded in the : Summary of Chemical Use . E.g for Brodifacoum (rat bait) the trends (kgs) are monitored. Year 06-07 = 2000 kg 07-08 = 20 kg 08-09 = 150 kg 09-10 = 430 kg 10-11 = 155 kg The Stock Book -Card record shows that for the current fiscal year starting July 2011, 80 kg of rat baits Broadifacoum has been allocated out and remaining 120 kg balance stock. In Cantawan estate, baits were used without reaching the threshold level as according to SOP. In Block 94K ,baits were applied but no census records were documented. (Minor CAR – 09 maintained) In BR2 and BR3, no baiting were done for last few years and census were done to monitoring the IPM situation.
In BR3: Monitoring of the pesticide used in total quantity ai /ha are being monitored and recorded.
Criterion 4.6 Agrochemicals are used in a way that does not endanger health or the environment. There is no prophylactic use of pesticides, except in specific situations identified in national Best Practice guidelines. Where agrochemicals are used that are categorised as World Health Organisation Type 1A or 1B, or are listed by the Stockholm or Rotterdam Conventions, growers are actively seeking to identify alternatives, and this is documented.
MA2009 There is written justification for the chemicals used. This identifies the objective for
control and the appropriate chemicals to be used. All chemicals used are registered and its usage been assessed in the CHRA document.
In the sites sampled during the main assessment, there was a consistent approach to the storage and control of chemicals. StOPs covered storage, as well as the
cleaning, storage of waste items and final disposal of containers and spills.
As a part of training, mill and plantation management officials at the operating unit
level explain to the workers the nature and hazards of the chemicals being
used. In general workers applying manure and spraying are aware of work risks,
the need to follow safety protocols – PPE, washing, etc., a n d make an effort to
comply with prescribed StOPs.
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However, it was observed that knowledge among workers on chemical risks is not
consistent. There is no systematic methods for ensuring workers have internalised
information on risks, and no mechanism to provide on-going support for
awareness and learning. Understanding of hazards among workers is not
consistent (Observation -05).
Medical examinations carried out with records available for screening for pesticides operators as per CHRA. Present medical check up includes pregnancy test for all female sprayers. Records of purchase of pregnancy kit available. However, at the time of main assessment Minor CAR-010 is issued based on the fact that there was no mechanism to confirm for early stage pregnancy of female workers.
At the time of revisit, the medical checkup conducted on workers includes pregnancy test for all female sprayers (Minor CAR-010 is closed).
The company’s commitment to reduce Type 1A chemicals is stated in their StOP.
It was observed that all chemicals used in the estates follows WHO
classification system. Paraquat is used in immature areas only when weed
infestation is serious. The use of rat bait which is a WHO Type 1A chemical is
restricted to very heavy rat infestation in the IPM, and follows StOP. There is a
decrease in most of the agrochemicals used in the estates (e.g. Cantawan
estate: Paraquat dichloride usage for year 2003/2004: 309 litres, 2004/2005:
204 litres, 2005/2006: 287 litres and records show that no Paraquat has been
used from 2007 to 2009) and the same applies for Type 1A chemical
2005/2006: 379, 2006/2007: 34 kg and no records of usage from 2008 to 2009).
Chemical mixing and application is thoroughly supervised. The mixing is done
by estate supervisory management staff and transported to the field for
application. Sprayers are not allowed to mix chemicals in the field. The sprayers
are briefed on safety and spraying techniques before beginning any task and are
appropriately protected and are knowledgeable of emergency response
procedures. Knapsack sprayers are used with appropriate nozzle size to
ensure effective ground level spraying.
Proper storage that clearly identifies chemicals based on WHO classification were observed in all the estates. The storage area has proper containment and tools for handling possible spillage. Systematic approach is being used in all subject areas associated with pesticide storage and handling from preparation for use, transport, application and handling to disposal of storage vessels.
SA2011 All agrochemicals used are on the official registered as required by the Malaysian Pesticides Act 149 (1974)
Chemical storage is observed to be satisfactorily stored according to the Malaysian Occupational Safety and Health and pesticide regulatory requirements
According to interview with sprayers, the workers participate in an annual medical checkups.
Awareness level among women workers was high in regard to policy against working
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during pregnancy.
• General awareness among field workers regarding chemical use
• Regular training carried out for hazardous chemical use activities
• The training has been included inside safety and health program which is will be carried out yearly
(Observation 5 – Closed )
Evidence of use patterns of Brodifacoum (active ingredient for rat baiting) since 2007 at Baturong 1 . Refer to Criterion 4.5 In Cantawan Estate the following worker was checked on their medical: Worker : Nurianti Jalante Operation: Sprayer Clinic : Klinik Mansor Sdn Bhd Medical check-up done : 10/5/2011. Recorded 14/5/11 in Occupational Medical Surveillance Programme Record Book Similarly, in BR3: Sprayers in Blk 93E Sarifah, Nurhayati, Juharna, Surianti and Indar medical surveillance were also checked. They had their medical done.the similar clinic, Klinik Mansor Sdn Bhd during the month of May 2011. Records are available in Medical Surveillance 2011 Baturong Estate 3 & Estate file : Safety and Health.B26-Medical surveillance by OHD
Many workers that were medically inspected by OHD Mansor Klinik Sdn Bhd have the same height , weight, BMI and blood pressure.
( Observation – 09 raised )
Criterion 4.7 An occupational health and safety plan is documented, effectively communicated and implemented.
MA2009 An OSH plan is available in all estates and mill. Minutes of Safety Committee meetings are available. Information concerning the safe use of machinery is posted
at workstations together with StOPs for the workstations and warnings of hazards. For
the most part, safe working practice is the norm, with workers making use of the
appropriate PPE and requirements for safe working practices.
However a Minor CAR-011 is issued due to the following three general areas of concern:
• Operational risks assessments are incomplete, but there does not seem to be a systematic review mechanism to identify potential gaps.
• Inadequate training in safe working conditions or provision of suitable information to supplement on-going training needs. Accident and emergency procedures may be not clearly
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understood by all workers.
• Inadequate and inconsistent use of equipment by estate workers. This includes both PPE as well as one of the tractors which was not maintained in a safe and road worthy condition. The first aid equipment is also not consistently maintained.
Accidents records are available and periodically reviewed. Safety performance is
monitored through Lost Time Accident and the information is displayed for the benefit
of t h e e m p l o y e e s . All w o r k e r s , i n c l u d i n g n o n -nationals a w a i t i n g
i m m i g r a t i o n approval, have been insured. (See 2.2.1)
SA2011 The estates comply with the requirement to develop a health and safety plan with periodic review of risk assessment and training programs. At Baturong 1, a new Safety and Health Risk Assessment review with more detailed information on each risk associated with each activity was conducted in January 2011 to update the plan from 2007. A Safety and Health Training Program for 2011 showed a list of trainings for each month of the year (e.g. workshop, chem. Store, PPE, harvesters, buffer zone training, medical awareness, sprayer, chemical handling, FFB loaders, fire drill and first aid instruction, and estate security). The program included dates of completion; names and signatures of training attendees and the program will be reviewed each year at the estate level.
According to OSHA, a health and safety meeting is required every 3 months. At Baturong 1, the last two meetings were conducted on 28-3-2011 and 28-07-2011. Examples of issues discussed included the lack of wearing PPE; wearing helmets when on motorbikes; a request for replacement of sickle covers to PVC type for longer use over the nylon cover; and health matters in line site.
During the inspection of PPE usage, it was found that one harvester in Baturong 1 Estate (Block 92B) wore a light, toy-like safety helmet that was not issued by the estate. The helmet was brought from Indonesia and is not sufficient protection to prevent injuries.
In Cantawan Estate, PPE goggles were also not used by CDA sprayer in 94E Inspection of First Aid Kits showed that maintenance of supplies was recorded and up to date. However, the record book to register accidents or injuries was not up to date.For example, in Baturong 3 Estate, a check of the Mandore Ishaf Alif’s First Aid Kit for Harvester Division 3 only showed injury entries from June 2009 to September 2009.
( Minor CAR 11- Maintained )
Local workers and staff are covered under SOCSO whereas foreign workers are covered under the Foreign Worker Compensation insurance ( RHB Insurance ) as per the Workmen Compensation Act 1952, which includes repatriation expenses and personal accident coverage (accidental death, permanent total disablement, temporary disablement and medical expenses).
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Criterion 4.8 All staff, workers, smallholders and contractors are appropriately trained
MA2009 A summary of training needs analysis register for each employee was provided. The training needs analysis covers all training activities (e.g. harvesters, sprayers, first aid, fire fighting, etc training) given to workers.
However, it was observed that training needs assessment has not been undertaken to ensure that all elements of required training for all levels of employees have been taken into consideration. The contractors have been inadequately trained and monitoring of fulfilment of safety requirements in the process of undertaking the contract is inconsistent (Minor CAR-012).
During the re-visit, a summary of training needs analysis register for each employee
was provided. The training needs analysis covers all training activities (e.g.
harvesters, sprayers, first aid, fire fighting, etc training) given to workers. Similarly,
training needs for contractors have been analysed and a commitment to undertake
adequate training for contractors have been given. As such minor CAR-012 is
closed.
SA2011 A Safety and Health Training Program for 2011 showed a list of trainings for each month of the year (e.g. workshop, chemical store, PPE, harvesters, buffer zone training, medical awareness, sprayer, chemical handling, FFB loaders, fire drill and first aid instruction, and estate security). The program included dates of completion; names and signatures of training attendees and the program will be reviewed each year at the estate level.
Criterion 5.1 Aspects of plantation and mill management that have environmental impacts are identified, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continuous improvement.
MA2009 The ‘Environmental Impact Assessment and Management Action Plans’ for each estate provides a list of aspects and impacts, given as a list of contents, for which a response is planned. This has been dated June 2009 and a commitment to an annual review has been recorded.
However, the identification of aspect and impacts is incomplete and there were
no guidelines for reviewing the current gaps (Minor CAR-013).
At the time of re-visit, a special Existing Environmental Issues Management Plan was developed to identify all environmental aspects and impacts minimising the gaps
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eventhough the implementation is y e t p r o ve n (See M in o r C AR 1 4 ). Written commitment is made to review ‘Environmental Impact Assessment and Management Action Plans’ annually (Minor CAR-013 is closed).
‘Environmental Impact Assessment and Management Action Plans’ provides plans
for action however the environmental improvement plan to mitigate the negative
impacts and promote positive impacts was incomplete (Minor CAR-014). A ‘Special
Existing Environmental Issues Management’ was developed immediately after the
audit identifying most aspects resulting from every day operation and future plans
that have been identified however its implementation and effectiveness is yet to be
ascertained.
SA2011 To supplement and fill the gaps from the main environmental assessment impact and management action plane, each estate now has available a Special Existing Environmental Issues Management Plan. These plans are reviewed each year and serve as a review process for management to maintain continued improvement
The Special Existing Environmental Issues Management Plans was available for each estate contains action plans and time bound deadlines for implementation, with updated remarks by managers to verify completion. These plans keep a record of action to mitigate negative impacts and encourage the implementation of activities for overall environmental improvements.
For example, the BR1, plan was reviewed on September 22, 2011 and the following actions are documented:
-- Patrolling on estates to prevent illegal activities in HCVs
-- Devise a program for EFB application to avoid leachates and to distribute evenly.
( Minor CAR –14 closed )
Criterion 5.2 The status of rare, threatened or endangered species (ERTs) and high conservation value habitats, if any, that exist in the plantation or that could be affected by plantation or mill management, shall be identified and their conservation taken into account in management plans and operations
MA2009 As described in many sections of this report, oil palm plantation in the Baturong
certification Unit were established in 1980s and now there was no natural areas
among the surrounding landholdings. All the land in the vicinity is either oil palm
plantation, other agricultural area or settlements.
HCV assessment on the plantation has been conducted (dated 24th
September
2009) where report for each estate is available. A local population of
crocodile and their habitat has been identified adjacent to the estate.
Management plan for identified HCV habitat has been viewed and evidence shown
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that there has been consultation with stakeholders. Co-management of archeological site is yet to be considered. Management plan for identified HCV habitat has been developed however it lacks specific and time bound planning actions supported by budget allocation (Minor CAR-015).
There has been inadequate consultation with expert stakeholders for the conservation management of threatened species for example for co-management of crocodile habitat (Minor CAR-016).
At the time of revisit, it was verified that the management plan has been revised to include time bound management activities/actions with budget allocation (Minor CAR-015 is closed). Communication regarding co-management of archaeological site with Department of Sabah Museum has been initiated.
The estate management has consulted with wildlife authorities on suitable measures for the specie conservation. The measures recommended by the authorities have been implemented. In addition, an important archaeological site has been identified and fenced off from the estate, and management given over to the appropriate authority.The company has undertaken consultation with expert stakeholders (e.g. Sabah Wildlife Department) and a specific management plan has been developed to manage the population of crocodiles and habitat (Minor CAR-016 is closed)..
Sign posts have been erected through out the estates to discourage all forms of
hunting. As mentioned earlier, consultation has been made with wildlife authorities concerning the crocodiles. The management has made effort to carry out wildlife cencus within the estate where preliminary results shows the presence of rat-eating Elaphe flavolineata –important for IMP, were noted in the fields.
SA2011 HCV habitats are identified and well marked for protection on estates. The following examples were observed during the surveillance: At Baturong 1 Estate, a one-acre site within the plantation (Block 92 A and B) is designated as an HCV 6 protected area. The Tapak Terbuka Tingkayu (Open Archaeological Site) is now a gazetted property under the management of the Sabah Museum. IOI provides access to the site for university research teams and protects the site with secure fencing. At Baturong 3 Estate, a conservation area of 15 ha is designated as an HCV 5 protected area as a water catchment forest. The entire area has never been planted with palms under IOI management and sentang trees are planted as a natural border. The catchment provides the main water supply for the estate.
A biodiversity study was conducted for the conservation area at Baturong 3 Estate. It identified a number of species, including snakes, wild boar and hornbills. Title: Observation Study at Baturong 3 High Conservation Value Forest, 10-11 August 2009. Management plans for HCVs identified include maintaining protection and limited access. No hunting or collection is allowed. There are no spraying or chemical use activities in the water catchment zone.
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However, it was noted that spraying continues to be conducted at the archaeological site in Baturong 1 Estate. This requires management to ensure that Sabah Museum and/or university researchers are not working in the area during spraying periods to avoid possible chemical contamination
5.2.3 Hunting is prohibited in all plantation areas and there are sufficient signboards to dissuade this activity.
Criterion 5.3 Waste is reduced, recycled, re-used and disposed of in an environmentally and socially responsible manner.
MA2009
The ‘Environmental Management and Monitoring Plan’, lists most of the activities at
the mill and estates that have the potential to generate wastes products and become source of pollution. However, only partial listing of waste products and its sources of pollution has been made ignoring the historical waste (e.g fibre, ash and scrap at the mill) (Minor CAR-017).
During the revisit, it was observed that a comprehensive listing of waste products and sources pollution has been made to include historical waste, fibre ash and scrap at the mill was presented and found to be adequate (Minor CAR-017 is closed).
For the sources of pollution identified in 5.3.1, there are plans and management objectives for treatment at the estate and mill levels. The sources of pollution currently identified do not all have an operational plan developed (see 5.3.1 above). The principle calls for waste to be disposed in an environmentally responsible manner. Plans respond by requiring that waste be separated, only decomposable waste being put into the land fill and other (non-decomposable) waste being recycled. Where this waste cannot be recycled, it is ‘abandoned’ at the landfill site. There is a false assumption that all non-organic waste is recyclable and that no further planning is needed for its disposal even when no markets exists to receive the separated wastes.
It was observed that historical mill wastes stored outside the mill compound are releasing leachates without treatment into the surrounding ground and waterways (Minor CAR-018).
Palm fronds and bunch stalks are retained in the field; EFB, other fibres as well as mineral ash returned to fields subject to transport constraints; de-watered POME returned to the fields in bags for slow nutrient release.
SA2011 The Unit EIA and Management Action Plan were viewed.
There is now a periodic review of environmental pollution impacts with management recommendations for further action. All sources of wastes and pollution are identified with mitigation and monitoring plans for negative impacts.
The Special Existing Environmental Action Plans prepared by each estate identify the gaps existing in the original plan and provide a mechanism for review, implementation and monitoring.
At Baturong 3 Estate, a second review of environmental pollution impacts was
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conducted on August 2, 2011. The review cited continuous improvement for recycling 20 litre chemical containers.
In May 2011, containers (141 pieces at RM0.10/kg) were sold to New Gates Industry (formerly known as MS Smart). A letter from Baturong 3 management was seen requesting the disposal of empty pesticide containers. In addition, a letter (July 2008) from the Department of Environment in Kota Kinabalu was seen that officially gave permission for MS Smart to transport pesticide containers.
The historical waste(old fibre and shell dumpsite) at the Baturong Mill has been disposed of properly by using it as renewable energy in the boiler to prevent build up of waste materials near the mill site as well as a source of leacheate.
The other pollutants under the Special Existing Environmental Issue Management Plan are identified and plan to avoid or reduce its pollution.
(Minor CAR – 18 closed)
At BR3 and Mill, Schedule Waste Oil Drums were re-used as recycle bins. ( Observation 10 - Raised )
Criterion 5.4 Efficiency of energy use and use of renewable energy is maximised.
MA2009
Fibre and shell fed to the boiler is regulated automatically by sliding plates at the feed mouth, controlled by steam pressure sensors. Compared to manual regulation, this reduces the periods sub-stoichiometric burn, resulting in relatively efficient use of renewable fuel.
The standard method to determine the amount of renewable energy used is through mass balance. An estimate of renewable fuel consumed for energy production is made by estimating the amount of fibre and shell as a standard proportion of the FFB received at the weigh bridge, less any fibre and shell exported from the mill through the weighbridge. Such estimates of fuel used do not take into account spillage and other losses from handling and storage of fibre and shell, but represent a static baseline indicator of the amount of renewable fuel consumed.
The current method using estimates of fuel input does not measure the efficiency of energy use and conversion to steam pressure. Without actual measures of the mass of renewable fuel used, it is not possible to measure changes in efficiency of energy and thus effectively monitor operational performance and trends. Efforts has been made to estimate the renewable energy used in the boiler but this estimation is not sufficient to allow monitoring of energy used and determine trends (Minor CAR-019).
All other energy consumption at the mill and in the estates is from non-renewable sources. Detail records of fuel usage are available both at the estates and mill.
SA2011 Boiler efficiency has been calculated by Baturong Oil Mill. The record was maintained on daily basis. The calculation was made using actual data such as total fibre, shell as well as total usage of water. This can be refer from the Boiler Efficiency Record
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under the Boiler Fuel Monitoring records
( Minor CAR – 19 Closed )
Flow meter to read actual usage of water has been installed and water usage records maintained on daily basis. ( refer to Criterion 4.4 )
Criterion 5.5 Use of fire for waste disposal and for preparing land for replanting is avoided except in specific situations, as identified in the ASEAN guidelines or other regional best practice.
MA2009 No open burning policy in place and observed implemented in the operations.
Previous crop felled was chipped and either windrowed with leguminous plants cover or buried prior to replanting. No evidence of burning wastes that originates from estate and mill.
SA2011 There was no evidence of open burning of domestic waste and during replanting as the company has a strict open burning policy. The standard procedure for chipping of old trunk prior to planting was observed being practiced in all areas visited during the surveillance visit.
Criterion 5.6 Plans to reduce pollution and emissions, including greenhouse gases, are developed, implemented and monitored.
MA2009 The ‘Environmental Impact Assessment and Management Action Plans’ provides plans for action for those potentially polluting activities that have been identified. Also see 5.4.1 for efficient fuel use at the mill.
Effort made to attenuate carbon from crop by-products (see 5.3.3). This is related to
5.1.2. The concern is that there is no documented plan to monitor the effectiveness of management efforts for activities which produce un-regulated sources of pollution. This includes: waste disposal, management of historical wastes from the mill, etc. (See Minor CAR-014 and 018).
The ‘Environmental Impact Assessment and Management Action Plans’ and Special Existing Environmental Issues Management Plan provides a list of aspects and impacts, given as a list of contents, for which a response is planned. Annual plans available at estate and mill level for pollution mitigating activities. No guidelines to review pollution prevention plans (See Minor CAR-013).
There are no peat land within Batu Rong estates
SA2011 Refer to 5.1
Annual ‘Special Existing Environmental Issues Management Plan’ has been documented and identifies sources of pollution. Environmental management and monitoring plan are reviewed annually for all estates and mill.
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Criterion 6.1 Aspects of plantation and mill management, including replanting, that have social impacts are identified in a participatory way, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continuous improvement.
MA2009
Social Impact Assessment (SIA) exists for each estate and was undertaken with the participation of identified stakeholders. It is seen as an active document where a reasonable amount of consideration has been given to mitigate social impacts for employees and communities affected by the plantations and mill.
The SIA’s social action plan is seen to resolve social issues adequately, in terms of clearly outlining the responsibilities for mitigation and monitoring. There is evidence that the company has engaged with identified stakeholders in a participatory manner.
The following records were viewed:
i. Records of all meetings
ii. Maps delineating locations of stakeholders, and
iii. Social economic profiling
The SIA has been undertaken with the participation of affected stakeholders and
there is no evidence of biasness in selecting stakeholder representatives. Records of meetings and dialogs with stakeholders were made available.
Timetable with responsibilities for mitigation and monitoring of social aspects as stipulated in the estates and mill social management plans is available. However, implementation of timetable is yet to be monitored and effectiveness determined (Minor CAR-020).
SA2011 Social Impact Assessment and Management Action Plans (Sept 2009 – 2014.) are available for each estate The Social Impact Assessment and Management Action Plans are reviewed and updated at the estate level. The plans provide records of meetings with affected stakeholders and timetables for action to be taken. The reviews document the outcome of these actions.
For example, Baturong 3 Estate, the main review was prepared in August 2009 with subsequent reviews in August 2010 and 2011.
Another example, a review of social impacts revealed that workers were concerned about the prices of goods at the sundry store. The action taken by the estate was to appoint the Social Liaison Officer to conduct a price check on a 6-month monitoring basis. A price list was then displayed with any differences to be reported to management. The latest Employee Consultative Committee (ECC) was held on 15 July 2011. List of attendance available. The other meetings were held on 12 Apr 2011 and 12 Jan 2011.
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(Minor CAR 20 – Closed)
Criterion 6.2 There are open and transparent methods for communication and consultation between
growers and/or mills, local communities and other affected or interested parties.
MA2009 Documented consultation and communication procedures exist and are covered in the estate’s Social Management Plan. Example of communications procedures viewed are as follows:
i) Grievance reporting flowchart
ii) Stakeholder request procedure (corporate and estate level)
iii) Grievance procedure for land owner issues
However a minor issue is that there is no clear evidence to indicate that consultation and communication procedures were designed in collaboration with relevant stakeholders.
All estates and mill have appointed a social liaison officer responsible for managing and monitoring social issues. The responsibilities of the Social Liaison Officer in the unit cover the following:
• Welfare and social needs of stakeholders (i.e. workers, suppliers, smallholders Kampong etc directly related to estate).
• Periodic visits to linesite and social amenities to ensure that buildings are in good order (through Hospital Assistant).
• Periodic visits to neighbouring stakeholders on a reactive manner to ensure that social issues are being taken care of (to have consultation to ensure that communication chain is available and maintained).
• Identification o f s o c i a l i s s u e s a f f e c t i n g s t a k e h o l d e r s a n d n e i g h b o u r i n g community/ies and to decide upon mitigation plans to solve social issues after consultation with the manager.
• Maintenance and monitoring of grievance issues and facilitate feedback mechanism to ensure that a line of communication is available.
• Monitoring of crèche and daycare centre to ensure that children are being well taken care of and adequately educated.
• To stakeholder’s requests and ensure that requests are followed up with a response.
• Grievance issues (encompassing social, work, repairs, etc.) and ensuring that proper follow up is conducted (this is to be documented).
• Safety and health aspect of linesite / estate / workers etc.
• Other social issues arising / ad hoc social issues (this is situation
dependent).
A comprehensive list of stakeholders exists, listing all government agencies, non- governmental organizations, village representatives and employees. Records of communication with stakeholders and actions taken were made available.
SA2011 There is recorded evidence of consultation with local communities with the village heads whereby the managers attempt to impart information on company decisions/policy.
The unit has documentation and communication procedures in the social impact
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assessment and management action plan. The procedures include grievance mechanism, information request, land dispute mechanism etc. It was also observed that record of communication with stakeholders exist and the unit is open and receptive to stakeholder’s request.
There is a social liaison officer for each estate ensuring that the social management plan is implemented and monitored. Baturong do not source or buy FFB from other sources.
Criterion 6.3 There is a mutually agreed and documented system for dealing with complaints and grievances, which is implemented and accepted by all parties.
MA2009 The dispute resolution process and outcome is guided by a mutually agreed documented process for dispute and conflict resolution. All employees through their representative have been briefed on the procedures involved. External stakeholders are also aware about the grievance mechanism.
Documented evidence of grievances which have been resolved and the outcome accepted by the workers (signature of workers obtained for every grievance resolved) were made available. The records of grievances appeared in a structured manner and viewed as adequate.
The records indicate that all disputes raised were resolved appropriately within the time frame accepted by parties. The mechanism for resolving disputes is enhanced by the following:
1. Estate Consultative Committee (ECC) which has representation from different level of workers who are elected by the workers.
2. There is grievance report book at all estates and the mill
3. For field workers: Report to mandore supervisor Assistant manager Manager
4. For staff: Report to manager
5. Report to Social Liaison Officer/Gender Representative
For other stakeholders, e.g. the local communities, the following is observed:
1. Community representatives write-in to the company (applicable to other stakeholders as well);
2. Community representatives meet the manager at the estate (applicable to other stakeholders as well);
3. The Social Liaison Officer visits the community representatives
4. The company holds meetings with community representatives
5. Local community invites company representatives to their village committee meetings whenever necessary. There is evidence that company representatives, e.g. estate managers have actively participated in these meetings.
In Cantawan estate, only one ECC meeting has been undertaken at the time of audit.
The system for dealing with complaints and grievances is open to all affected parties and interviews with workers and stakeholders indicate that no discrimination has taken place. The system is open to any affected parties (see 6.3.2) through:
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i. Employees Consultative Committee (ECC).
ii. Gender representation (at least a designated gender representative).
iii. Designated grievance book which is endorsed by the complainants when action has been taken to resolve a grievance.
iv. Other internal mechanisms and external mechanisms are as per 6.3.2.
SA2011 Grievance / Request Book records were viewed request and grievances were recorded since 2008 till 22/6/2011
Documentation of grievances is adequately maintained. Based on discussion and evidence gathered during the surveillance visit, it could be concluded that the system is fair and open to all affected parties.
Criterion 6.4 Any negotiations concerning compensation for loss of legal or customary rights are dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions.
MA2009 The procedures for identifying legal and customary rights and for identifying
people entitled to compensation are in place. These procedures are available for
all units in IOI. A procedure for calculating and distributing fair compensation is
available at the unit level. This is a guidance document for all IOI operating
units. There is a procedure in documenting outcome of compensation claims
which also includes public consultation.
However, to date, there are no reported cases of dispute with any parties which have resulted in payment of compensation ever occurred within Batu Rong Unit.
SA2011 The procedures for identifying legal and customary rights and for identifying people entitled to compensation are maintained. The company continue to provide necessities to the communities living nearby and maintain good rapport with the community leaders. There were no records on issues of compensation or complaints from the communities.
Criterion 6.5 Pay and conditions for employees and for employees of contractors always meet at least legal or industry minimum standards and are sufficient to provide decent living wages.
MA2009 Documentation of pay and conditions is found to be adequate. The documentation is as follows:
i) There is documentation of salary in the form of pay slips and payment records for contract workers and company workers detailing the basic pay, deductions, overtime, bonuses, allowance etc.
ii) There is documentation of legalisation of migrant workers.
iii) A separate employment agreement is drawn up for foreign workers at all estates and the mill, outlining their pay and conditions.
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Employment contract for foreign workers available. There are terms of reference for signed contracts between employers and employees stipulating the position, working hours, type of work, location of work, workers’ responsibility, wages, allowances, holidays, rest days, annual leave, fringe benefits, levy deductions (for foreign workers), dismissal, etc.
The appointment letter of staff contain the following elements:
• Job description
• Work location
• Salary
• Increment and bonus
• Duration of employment
• Public holidays (12 days per annum, including four (4) compulsory
holidays, i.e. Labour Day, Agong’s Birthday, National Day and State Governor’s Birthday.
• Annual leave
• Medical benefit, i.e. free medical attention.
• Group insurance coverage
• Employees Provident Fund (EPF)
• Notice of Termination
• Transfers
• Other employment
• Confidentiality
The offer letter (Surat Tawaran Kerja) for migrant workers contains the following:
• Job description
• Contract duration and hours
• Work location
• Employee responsibility
• Wage calculation (80% basic piece rate and 20% statutory benefits, i.e. public holiday, sick leave, sick pay, overtime, annual leave and rest days).
• Overtime
• Leave: public holidays, sick leave, hospitalisation, annual leave and rest days. All of the leave days are included in the salary and will be paid accordingly.
• Facilities: housing, transportation, medical treatment at estate clinic, insurance,
• Deduction of levy to the Malaysian Government
• Legal working age: 18-50 years
• Termination of work permit
Evidence found for incomplete information provided for documentation on pay and
conditions for some individual foreign workers (employment contract)
(Observation-06).
Field observation and interview with workers revealed that housing and other facilities for workers was observed to be inadequate. (e.g. unreliable supply of electricity, poor standard of maintenance for sanitary facilities, poor public cleansing, roof leaks, untreated water supply) (Minor CAR-021).
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SA2011 Housing and facility improvements for workers include the construction of an updated concrete drainage system at the line site. Construction of new housing for workers quarters was also observed.
In addition, retention ponds for sewage and septic tanks are inspected each month.
Treated water is supplied to BR1 estate from the mill. In BR3 and Cantawan, water treatment plants has been constructed to supply water tothe staff and workers. The water treatment plant of Baturong 2 is ready and piping is being established. Started operation 4
th Oct 2011. Water source: natural pond. Record of use started: 23m3.
Electricity is provided from 3 a.m to 6 a.m for morning preparation and again from 2 p.m to 12 midnight for afternoon and evening use during off-working hours.
Recycling waste is organized at the line site by a designated line sweeper to segregate trash. A material storage building is located at the line site to keep the area clean until recyclables are transported. Regular garbage pickup occurs 2-3 times per week.
Building inspection (Building Safety Inspection Checklist ) was done on 19th Aug
2011 to identify items needed to be repaired or replaced. Request for items are in the store 24/9/11. They are waiting for Baturong repairman/ electrician to install.
(Minor CAR 21 – Closed )
Employment contract of foreign workers were checked and it was confirmed that it
is similar to the other IOI production units. A detail of employment contract has
been included inside worker employment contract. The detail includes salary, public
holidays, personal details etc.
Circular to inform workers regarding change of the contract agreement details such
as their salary rate, has been displayed in notice board.
(Observation 06 - Closed).
Criterion 6.6 The employer respects the right of all personnel to form and join trade unions of their choice and to bargain collectively. Where the right to freedom of association and collective bargaining are restricted under law, the employer facilitates parallel means of independent and free association and bargaining for all such personnel..
MA2009 Minutes of meetings of the Employees Consultative Committee (ECC) are available at the estates and mills. The ECC represents the avenue for collective bargaining for all workers including foreigners. At the time of audit, only one Employees Consultative Committee (ECC) meeting was held in Cantawan Estate.
A valid freedom of association policy is available in all local languages including Tagalog and Bahasa Indonesia. In the context of foreign labour in Sabah, the company is limited by Malaysian Immigration Policy which states that foreign workers are prohibited from engaging in any kind of trade union.
SA2011 The ECC meetings where the foreign workers are members where grievances can be aired and discussed are maintained.
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Published statement in local languages that recognizes freedom of association is available.
The valid freedom of association policy is available in all local languages including Tagalog and Bahasa Indonesia is maintained, besides in English and Bahasa Malaysia.
Criterion 6.7 Children are not employed or exploited. Work by children is acceptable on family farms, under adult supervision, and when not interfering with education programmes. Children are not exposed to hazardous working conditions.
MA2009 A major CAR-01 was issued during the main assessment after findings shows occurrence of under age in the plantation. Allowing minors to accompany working parents in the field without any form of training or company’s supervision. No alternative educational or vocational programme for children who have finish their Humana schooling and have chosen to stay back with their parents instead of returning to country of origin to further their education. The presence of minors working in the field with their parents and being exposed to hazardous working conditions (Major CAR-022).
At the time of re-visit, the following were observed:
1. Policy statement for no child labour dated 5th
November 2009 endorsed by the Group
Plantation Director was provided.
2. Internal letter/memo by General Manager distributed to all estate managers and assistant in charge pertaining to prohibition of young person in work place and minimum age requirement for recruitment of workers. Date: 07/10/2009. Attached
with the memo are 2 SOP guidelines for implementation of the above issue. The SOP
provided are as below;
i. Prosedur mengambil pekerja baru
ii. Prosedur bagi mencegah pekerja bawah umur 18 tahun.
3. Documented evidence to prevent minors from working in the fields and the hiring of under aged persons:
a. Letter pertaining to HUMANA special class for children age between 13-17 years old
(12/04/2010).
b. Memo to contractors pertaining to prohibition of underage workers (01/10/2009)
c. Memo workers contractors pertaining to prohibition of underage workers (01/10/2009)
d. Letter to workers pertaining to religious classes for young person between 13 -17 years old (12/4/2010).
e. Underage person control checklist (November - December 2009, January - April
2010)
f. Mandore record book (January - April 2010)
g. New registration workers checklist (December 2009, January - April 2010)
h. Staff Monitoring record book (November 2009, January 2010 and March 2010)
i. Assistant monitoring record book (November 2009, January 2010, March and April
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2010)
j. Tractor driver record book (October 2009, December 2009, March and April 2010)
Field visit shows no incidents of under age working in the mill and plantation. The Manager has taken reasonable steps to ensure that parents comply to the company policy (Major CAR-022 is closed).
SA2011 The minimum age of 18 years old in the policy statement is maintained.
A young worker, En Imran was observed working in the field and his employment record was checked and found to be 20 years old.:
Employee records show that employment age requirement is met. Ground observation during surveillance visit also does not show evidence to suggest employment of underage workers.
The workers are also protected and insured under the RHB Foreign workers compensation Scheme policy number D10WFWC8612143KL (1Oct 2011-30Sept 2012) & D09WFWC8610177KL( 1 Oct 2011-30Sept 2012)
Criterion 6.8 Any form of discrimination based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation, or age, is prohibited.
MA2009 There is a publicly available equal opportunities policy which states that the company is an equal opportunity employer, whereby the company does not practice discrimination based on race, caste, national, origin, disability, gender, sexual orientation, union membership, political affiliation, or age.
There was no evidences to show that foreign workers are being discriminated in any forms.
SA2011 There is a publicly available equal opportunities policy which states that the company is an equal opportunity employer, whereby the company does not practice discrimination based on race, caste, national, origin, disability, gender, sexual orientation, union membership, political affiliation, or age, except for positive discrimination.
The BOM-PMU complies with the Sabah Labour Ordinance.
As observed during the main assessment, documented policy on equal opportunities is available and communicated to all employees.
There is no evidence of discrimination when a cross section of employees was interviewed. A functioning grievance mechanism is in place. The ECC also looks into allegation of discrimination if reported.
Criterion 6.9 A policy to prevent sexual harassment and all other forms of violence against women and to protect their reproductive rights is developed and applied.
MA2009 A policy on sexual harassment exists. A mechanism for recording harassment is also available. No evidence or practices that contradict this policy were observed. Discussion with the workers shows that the company provide fair and just treatment to women. Grievance mechanism for sexual harassment is in place. A documented sexual harassment grievance mechanism exists.
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There is also a Gender Representative (usually female) appointed for each estate and mill, whose duties include attending to grievances pertaining to gender issues, especially sexual harassment. The Gender Representative is also in-charge of communicating the Policy on the Prevention and Eradication of Sexual Harassment in the Workplace to the workers and staff.
SA2011 In the complaint /Grievance. No sexual harassment complaints were filed between 27/7/09 – 18/6/11
Request book is also used for social request.
As noted during the main assessment, policy on sexual harassment exists and communicated to all employees.
The Gender Representative (usually female) appointed for each estate and mill, whose duties include attending to grievances pertaining to gender issues, especially sexual harassment is maintained.
Criterion 6.10 Growers and mills deal fairly and transparently with smallholders and other local businesses.
MA2009 The Batu Rong oil mill is not sourcing FFB from outside suppliers including smallholders. All contractual agreements are legal and appear to be fair and transparent. Interviews with suppliers and contractors at the estates reveal that all payments are made in a timely manner
MA2011 Not applicable as Baturong does not deal with smallholders and outgrowers.
Criterion 6.11 Growers and millers contribute to local sustainable development wherever appropriate.
MA2009 The social impact assessment has included local communities and neighbouring stakeholders. A plan of action has been drawn out to contribute to local activities. The unit as a whole has donated money for local school activities.
The estates and mill have demonstrated a budget to accommodate ad-hoc requests for donations.
1. There is evidence that preference for employment is given to members of local communities for all positions, especially in the mill and offices. Anecdotal evidence indicates that locals shy away from field work/manual labour.
2. There is evidence of Corporate Social Responsibility (CSR) such as contribution to:
• Education foundation (Tan Sri Dato’ Lee Shin Cheng Foundation)
& scholarships (e.g. the annual Yayasan’s Young Achievers’ Awards Programme),
• Student adoption programme (Tan Sri Dato’ Lee Shin Cheng Foundation) Assistance in kind to communities and employees for the utilisation of company infrastructure such as schools.
• Granting access to adjacent communities to utilise the estate roads.
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• Improved telecommunication
SA2011 POM-PMU continues to contribute to local development. Contribution to local communities is specified in the social impact assessment and management actions plan.
Some of the community contribution to local sustainable development are as follows:
1) 17/09/11 Police Kunak. For their Persatuan Keluaga Polis( family day ) programme
2) 31/7/11 Persatuan Jururawat Sabah ( Nurses Association Sabah )
3) 13/7/11 Persatuan ibubapa guru SK Madai ( Parent-Teacher Association Madai School )
4) Baturong Sports day, Israk Miraj, Bua Puasa.( Religious festival )
5) Humana School support. Monthly contribution RM2, 000. Workers kids attend this school until they are 15 years old.
Criterion 7.1 A comprehensive and participatory independent social and environmental impact assessment is undertaken prior to establishing new plantings or operations, or expanding existing ones, and the results incorporated into planning, management and operations.
MA2009 Oil palm plantation within Batu Rong has been established in 1980s. There are no new plantings within the unit. Nevertheless, following the regulatory compliance, IOI has conducted and prepared an Environmental Impact Assessment for replanting of oil palm for Baturong 1 Estate dated August 2008. The report has been approved by the Environment Protection Department of Sabah was viewed and found to be adequate
SA2011 There are no new plantings. The company is only involved in re-planting programme after felling of old palms and there is no plan for expansion.
For replanting, the POM-PMU has undertaken an independent EIA for replanting in the estates and submitted to the Environmental Protection Department of Sabah.
E.g of the report by Chemsain Konsultant Sdn Bhd
Environmental Monitoring & Compliance Audit Report for replanting of Oil Palm Plantation at Baturong 1 Estate, Lahad Datu district.
2nd Report of year 2011,
Our Ref: CKMO411/373-2/11
Date of Monitoring / Audit : 12th Oct 2011
Period Covered : Jul – Oct 2011
Criterion 7.2 Soil surveys and topographic information are used for site planning in the establishment of
new plantings, and the results are incorporated into plans and operations.
MA2009 Pls see 7.1.
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SA2011 Please see 7.1.
Criterion 7.3 New plantings since November 2005, have not replaced primary forest or any area required to maintain or enhance one or more High Conservation Values.
MA2009 Pls see 7.1
SA2011 Please see 7.1.
Criterion 7.4 Extensive planting (to be determined by SEIA) on steep terrain, and/or on marginal and fragile soils, is avoided.
MA2009 Pls see 7.1
SA2011 Please see 7.1.
Criterion 7.5 No new plantings are established on local peoples’ land without their free, prior and informed consent, dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions.
MA2009 Pls see 7.1.
SA2011 Please see 7.1.
Criterion 7.6 Local people are compensated for any agreed land acquisitions and relinquishment of rights, subject to their free, prior and informed consent and negotiated agreement.
MA2009 Pls see 7.1.
SA2011 Please see 7.1.
Criterion 7.7 Use of fire in the preparation of new plantings is avoided other than in specific cases as identified in the ASEAN Guidance or other regional best practice.
Criterion 8.1 Growers and millers regularly monitor and review their activities and develop and implement action plans that allow demonstrable continuous improvement in key operations.
MA2009 As part of their effort to make continuous improvement in key areas, it is noted that action has been taken to minimise the use of pesticide in the estates.
The alternative treatments employed have been shown to be a practical alternative. However, rat bait still required for areas with young palms and there are evidences to show that non-pesticide alternatives are used when the palm reached mature stage.
As described, there is a written justification for the use of all pesticides. These are used in IPM system in conjunction with non-chemical management methods.
The ‘Environmental Impact Assessment and Management Action Plans’ provides a list of aspects and impacts, given as a list of contents, for which a response is planned. The estates p l a n for mitigating a c t i o n s w h e r e t h e y m a y c r e a t e environmental impacts from their activities, a nd record that money spent and work accomplished. But these are not necessarily indicators that the impacts have been adequately mitigated.
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The major concern is that:
• There is no mechanism to review that the indicators used to assess
management performance for their effectiveness to mitigate environmental impacts are suitable or need to be improved.
• No time bound targets for plan objectives, or identification of where current performance targets can be improved.
These concerns are reflected in minor CAR-03 and 014.
Policy and plans at unit (estates and mill) level are in place to minimise wastes. Wastes from domestic source and the work place, is separated and stored in separate containers pending collection. Where possible, the separated wastes are used for beneficial purposes. Almost all crop wastes are returned to the land. Efforts made for recycling and minimizing waste.
Although waste is separated at source, there is still a problem with finding a party willing to take the waste for a beneficial purpose. There is a concern that the mechanism has not been provided for that would review current inconsistencies and conflicts with unit level instructions and actual practices at the estate level for the final disposal of wastes until they degrade to become stable end products.
There are planning documents unit level, that examine mill and estate activities, and identify the areas where pollution prevention plans are required. However, items that could potentially cause pollution but which have been omitted from the list have not been planned for In time it is expected that the more obvious omissions will be identified, but unless gap identification is undertaken as a systematic review exercise, resultant damage to biological targets in downstream waterways as well as human targets in the estates and local communities could go un-noticed . See 5.1.1, 5.3.1, 5.6.1
The concern is that there is no mechanism at the estate level to review for gaps in guidance for the pollution prevention planning
There is a commitment to review social impacts and social management plan on an annual basis. Mechanism exists to capture expenditure, but this does not necessarily capture the quality and effectiveness of performance (social and environment). The budget does not reflect the details of expenditure in terms of social and environmental sustainability.
Inadequate indicators exist to monitor the effectiveness of social and environmental management (pls see minor CAR-023).
SA2011 IOI as a plantation group has demonstrated commitment to continuous improvement. As an established public listed plantation company, IOI continue to monitor its production performance. The R&D division promotes and improves crop production though its recommendations.
BOM-PMU is committed to the reduction of pesticide usage through their continued IPM programme.
The development of the Special Existing Environmental Issues Management Plan
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and its annual review is the BOM-PMU commitment to continuos improvement for the mitigation of environmental impacts.
The unit continue to maximize recycling of wastes. Recycling programme and records of waste are documented.
Budget for social, environmental and safety and health is now available inside estates and mill accounts. For example :
a) In Cantawan 2011/2012 budget, RM40, 319 has been allocated under the code GC 40 for the following programmes : waste disposal, IPM, streams, water analysis, riparian HCV, Erosion. For social improvement GC 41 Social : Linesite clearing, stakeholder meetings, RM 7,340 is allocated.
b) In BR 3 , environment GC 40 Budget RM22,132 Social RM 16,745
c) In BR2 , environment budget GC 40 RM45,045, Social: RM16,200
( Minor CAR – 23 closed )
At Baturong 3 Estate, each worker’s house has a direct water supply and is provided with a supplemental water tank for rainwater catchment. This provides an extra supply of water for washing and other non-cooking uses. In addition, there are plans to build a brick water container at each house to avoid using plastic containers for water supply.
There are also plans to replace open drains with PVC pipes pending a management decision on cost factors.
3.1 Summary of findings during surveillance assessment
A total of 2 Major Corrective Action Requests (CARs), 21 Minor CARs and 6 observations were raised
in the 2009 main certification audit. During the CAR close out visit on the 9th November 2009, 8 Minor
CARs were closed. The 2 Major CARs were closed after a document review was undertaken at the
end of April 2010.
During this first surveillance, there were 13 Minor CARs and 6 Observations outstanding from the
main audit.
At the close of this first surveillance audit, a total of 2 new Minor CARs, 2 Minor CARs maintained and
4 observations have been raised.
The first annual surveillance (2009) has recorded no major CARs. In view of this finding, it is
recommended that this unit remain certified.
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4.0 Chain of Custody
Baturong Oil Mill only processes FFB from their own estate within the Unit. Till date, as Baturong Oil
Mill does not deal or source FFB from smallholders or out growers.
Fresh Fruit Bunches (FFB) produced by the estates are transported to and processed at Baturong Oil
Mill. The mill with a capacity of 30 metric tonne FFB per hour received and processed raw materials
(FFB) from the supplying estates as described in this report.
From the plantation, the FFB were delivered by trucks and tractors where details on the delivery
documents allow traceability of the fruits to a group of harvesting block in each district or sector.
Records of FFB deliveries and input into the processing line are well maintained by the company.
Similarly, records of CPO and palm kernel output are also maintained on daily basis.
Although the BOM-PMU has established standard operating procedures for the different operations
within the mill day-to- day operation, no chain of custody procedure has been established for the
supply chain.The mill (and the plantation) currently does not have a document standard operation
procedures (StOPs) that identify the critical control points (CCPs) and described the method used in
identifying, segregating and recording at each point identified. The document also need to identify the
person in charge (or the management representative) responsible for the implementation and
maintenance of the whole system and ensuring its integrity.
5.0 Maintenance of certification
During the surveillance evaluation, it is assessed if there is continuing compliance with the requirements
of the MYNI. Any areas of non-conformance are raised as one of two types of Corrective Action Request
(CAR):
.01 Major CARs - which must be addressed and closed out urgently with an agreed short time frame since the organisation is already a certified organisation. Failure to close out within the agreed time frame can lead to suspension of the certificate.
.02 Minor CARs - which must be addressed within an agreed time frame, and will normally be checked at the next surveillance visit
The full record of CARs raised over the certification period is listed under section below. The table below provides a progressive summary of findings for each surveillance.
SURVEILLANCE 1
Issues that were hard to assess Baturong demonstrated that they have the intentions of complying with the requirement of RSPO P& C (MYNI) during the audit.
Issues of importance relating to environmental monitoring, chemical use, IPM as well as health and safety aspect of workers were addressed.
Number of CARs closed 11 Outstanding CARs were closed.
Nr of CARs remaining open 2 Outstanding CARs from previous evaluations were not closed.
New CARs raised 0 New Major CARs and 2 Minor CARs were raised.
Certification Decision The management of the oil palm mill and estates of Baturong remains certified as:
The management system is capable of ensuring that all of the requirements of the applicable standard(s) are met over the whole certification unit covered by the scope of the evaluation; and
The certificate holder has demonstrated, subject to the specified corrective actions, that the described system of management is being implemented consistently over the whole certification unit covered by the scope of the certificate.
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SURVEILLANCE 2
Issues that were hard to assess
Number of CARs closed
Nr of CARs remaining open
New CARs raised
Certification Decision .
5.1 Status of non conformities in 2009 and new non conformities raised in 2011
Presented below is the tabulated form of non conformities closed during the surveillance. To
present a comprehensive record of non conformities that can be track over time, the con
conformities raised during the 2009 surveillance are also presented in the same table.
List of Corrective Action Requests
CAR # MYNI Indicator
CAR Detail
Minor
02
2.1.3 Date
Recorded>
1 October
2009
Due Date>
Surv 01 Date
Closed> 04 Oct 2011
Non-Conformance:
No clear and documented mechanism to ensure that laws are implemented
Objective Evidence:
The operating unit has yet to undertake monitoring of legal compliance because the system is just being developed
Close-out evidence:
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CAR # MYNI Indicator
CAR Detail
The POM- PMU has copies of the relevant applicable local, national and ratified international laws and regulations.
The ‘Sustainability Team: 1) tracks the change in the law, 2) assess current practices and submit suggestions for changes to senior company management. The person responsible for monitoring the changes and communicating it to the group remains the ‘Sustainability Team’ who carry out internal audit for each estate and mill
Each estate updates the list of relevant laws and regulations that are required to maintain various legal permits. For example , list of licenses and permits for Baturong 1 Estate were viewed and found to have been renewed. Updated list of all permits; records of payments; copies of permits with expiration dates highlighted and in compliance with current dates.
As for the workers, under the Govt 5P programme, all workers without passport have been registered with the programme to get them legalised. There were 92 workers involved of which 54 Indonesians and 38 Filipinos.
Minor CAR 02 - Closed
Minor 03
4.1.2 Date Recorded>
1 Oct 2009
Due Date>
Surv 01 Date
Closed> 5 Oct 2011
Non-Conformance:
Monitoring of implementation of StOP is weak, resulting in inappropriate field practices. e.g. Selective spraying.
Objective Evidence:
Insufficient records of monitoring and weak mechanism to undertake such monitoring of StOPs
Close-out evidence:
StOPS were reviewed and revised in July 2011.Some of the StOPs reviewed were as follows:
- Manual Fertilizer Application for Immature and Mature area.
Land Preparation for New Planting and Replanting
Planting Leguminious Cover Plant
Weeding
Inspecting and Maintaining Oil Traps
Road Maintenance
Pruning
Minor 03 - Closed
Minor 05
4.3.2 Date Recorded>
Due
Date>
Date Closed>
Non-Conformance:
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CAR # MYNI Indicator
CAR Detail
Inconsistent maintenance of non competitive ground cover in mature areas.
Objective Evidence:
Evidences of historical erosion control were observed through terracing. Current practices include frond stacking, silt trapping, cover crop establishment and tolerance of soft weeds in the inter-rows. Inconsistent stacking of frond heaps along contours has resulted in poor erosion control on slopes
Close-out evidence:
Good ground cover exists in the interrows and in replanting areas in in terrace or non-terrace areas in Baturong 1 and Baturong 3 Estates. . Palm fronds are placed in alternative rows to prevent soil erosion in non-terrace areas. Minor CAR 05 - Closed
Minor
06
4.3.5 Date Recorded>
1 Oct 2009
Due Date>
Surv 01 Date
Closed> 5,6 Oct 2011
Non-Conformance:
Inconsistent construction conservation terraces for slopes >15° No construction of stop bunds to retain water within the terrace. Ineffective maintenance and restoration of riparian areas.
Objective Evidence:
Inconsistent field practices have lead to chronic soil and nutrient loss by erosion. Activities include:
• Poor planning for slope conservation through use of terraces on slopes > 15°.
• No stop bunds to control run-off water diverted onto terraces and currently eroding the terraces,
Erosion along stream banks with siltation down-stream could have been minimised if riparian vegetation had been effectively managed.
• Inconsistent terraces, ‘Stop bunds’, and ineffective maintenance and restoration of riparian areas
Close-out evidence:
Some areas are not planted with palms due to steep slopes. These are mainly in areas with slopes greater than 25°. In Baturong 1 Estate, an area of 2-3 ha in Block 92D was left to be vegetated naturally due to its steepness.
At Baturong 3, steep slope areas (i.e. Block 93 I, Division 4) are planted with sentang trees as a natural cover. Based on Slope report. most of the land is between 0-25 degrees. Evidence stop bunds, silt pit, side drain diversion in estate field with hilly area. Minor CAR 006 - Closed
Minor
08
4.4.7 Date Recorded>
1 Oct 2009
Due Date>
Surv 01 Date
Closed> 4 Oct 2011
Non-Conformance:
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CAR # MYNI Indicator
CAR Detail
No evidence of water management plans
Objective Evidence:
Documented water management plan viewed but this does not capture the full aspects of water management in both mill and estates, and monitoring data not used to improve management.
Close-out evidence:
. Documented evidence of a water management plan for the Baturong Group established in Sept 2009 .
Mill has installed flowmeters and meter readings recorded and monitored.
Estates has started recording for monitoring of water usage
( Minor CAR – 08 closed)
Minor
09
4.5.2 Date Recorded>
1 Oct 2009
Due Date>
Surv 02 Date
Closed>
Non-Conformance:
No monitoring extent of IPM implementation for major pests.
Objective Evidence:
Monitoring of chemical use incomplete to support IPM.
There is inconsistency in evaluating the need for pest control actions. e.g. Control of rats.
Close-out evidence:
i) Cantawan : Rat baits were applied even though the census did not show the 5% threshold level in Field 93F.
ii) Field 94K was baited but census record for the field was not available.
( Minor CAR – 09 maintained )
Minor
11
4.7.1 Date Recorded>
1 Oct 2009
Due Date>
Surv 02 Date
Closed>
Non-Conformance:
Incomplete evidence and records of documented Occupational Safety Health (OSH) plan which is in compliance with OSH Act 1994 and Factory and Machinery Act 1967 (Act139).
Objective Evidence:
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CAR # MYNI Indicator
CAR Detail
Operational risks assessment is incomplete and awaiting gap filling exercise after next review.
• Inconsistent training for appropriate working practices.
• Inadequate and inconsistent use of PPE by estate workers – e.g. equipping mandores/supervisors
• Minutes for Health and Safety Committee meetings
viewed, did not discuss workers’ concerns on health and safety.
• Inconsistent maintenance of first aid equipment.
Not all workers are covered by accident insurance. See 2.1.1.
Close-out evidence:
Most PPE worn by workers is consistent, except a) the inappropriate safety helmet for harvesters b) Sprayer in Cantawan without goggles/ PPE Field 94E
First Aid Kits records not all up to date
( Minor CAR- 11 maintained )
Minor
14
5.1.2 Date Recorded>
1 Oct 2009
Due Date>
Surv 01 Date
Closed> 4 Oct 2011
Non-Conformance:
No environmental improvement plan to mitigate the negative impacts and
promote the positive ones, is developed, implemented and monitored
Objective Evidence:
Incomplete environmental improvement plan to mitigate the negative impacts and promote positive impacts.
Close-out evidence:
Special Existing Environmental Issue Mgmt Plan available at each estate. The was develop periodically to fill any gaps exist in Environmental Impact Assessment and Management Action Plan
( Minor CAR –14 closed )
Minor 18
5.3.2 Date Recorded>
1 Oct 2009
Due Date>
Surv 01 Date
Closed> 4 Oct 2011
Non-Conformance:
The operational plan did not identify wastes and pollutants should be
included to avoid or reduce pollution.
Objective Evidence:
Not all sources of pollution/waste have operational plans being implemented
Close-out evidence:
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CAR # MYNI Indicator
CAR Detail
Historical waste (old fibre and shell dumpsite) at mill site being reduced by using in the boiler.
Other Pollutants under the Special Existing Environmental Issue Management Plan are identified and plan to avoid or reduce its pollution
(Minor CAR – 18 closed)
Minor 019
5.4.1 Date Recorded>
1 Oct 2009
Due Date>
Surv 01 Date
Closed> 4 Oct 2011
Non-Conformance:
No monitoring of renewable energy use per tonne of CPO or palm product in
the mill.
Objective Evidence:
Efforts have been made to estimate the renewable energy used in the boiler but
this estimation is not sufficient to allow monitoring of energy used and determine
trends.
Close-out evidence:
Documented evidence available in the Boiler Fuel Monitoring records
( Minor CAR – 19 Closed )
Minor 20
6.1.3 Date Recorded>
1 Oct 2009
Due Date>
Surv 01 Date
Closed> 4 Oct 2011
Non-Conformance:
No timetable with responsibilities for mitigation and monitoring is reviewed and updated as necessary.
Objective Evidence:
Absence of mechanism for monitoring the success of implemented plans.
Close-out evidence:
Social Impact Assessment and Management Action Plans has been prepared. Records of meeting with affected stakeholder is available inside the plan
Timetable with responsibilities for mitigation and monitoring of social impacts stipulated in the estates and mill Social Impact Assessment and Management Action Plans
Minor CAR – 20 closed
Minor 21
6.5.3 Date Recorded>
1 Oct 2009
Due Date>
Surv 01 Date
Closed> 6 Oct 2011
Non-Conformance:
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CAR # MYNI Indicator
CAR Detail
Growers and millers should provide adequate housing, water supplies, medical, educational and welfare amenities in accordance with Workers’ Minimum Standard of Housing and Amenities Act 1990 (Act 446) or above, where no such public facilities are available or accessible (not applicable to smallholders).
Objective Evidence:
Housing and other facilities for workers was observed to be inadequate. (e.g. unreliable supply of electricity, poor standard of maintenance for sanitary facilities, poor public cleansing, roof leaks, untreated water supply).
Close-out evidence:
. Construction of new housing for workers quarters observed
All line site facilities include electricity, water and waste collection schedule
Treated water supplied to domestic use
Upgrading of drains in progress
(Minor CAR – 21 closed )
Minor 23
8.1.6 Date Recorded>
1 Oct 2009
Due Date>
Surv 01 Date
Closed> 5 Oct 2011
Non-Conformance:
A mechanism to capture the performance and expenditure in social and environmental aspects.
Objective Evidence:
Mechanism exists to capture expenditure, but this does not necessarily capture the quality and effectiveness of performance (social and environment). The budget does not reflect the details of expenditure in terms of social and environmental sustainability
Close-out evidence:
Budget and details for social, environmental and safety and health is now available inside estates and mill yearly budget accounts.
Allocation of RSPO budget inside annual budget is available and can be demonstrated through 5 years business plan.
( Minor CAR – 23 closed )
Minor 24
Criterion 4.3 Date Recorded>
5 Oct 2011
Due Date>
Surv 02 Date
Closed>
Non-Conformance:
Evidences of incomplete practices that minimise and control erosion and degradation of soils.
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CAR # MYNI Indicator
CAR Detail
Objective Evidence:
Gully erosion forming in Cantawan 93H due to water runoff from the road
(Minor CAR 24 - Raised )
Close-out evidence:
.
Minor 25
4.3.3 Date Recorded>
5 Oct 2011
Due Date>
Surv 02 Date
Closed>
Non-Conformance:
Presence of road maintenance programme
Objective Evidence:
Memo on Reviewed StOP ( Jul 2011 ) for road maintenance states that herbicide spraying to be strictly prohibited on roadside slopes. Freshly cut slopes are also to be vegetated. There are evidences on hilly fields in Cantawan and BR 3 that roadside slope are bare due to herbicide spray or freshly cut that exposes soil to possible erosion.
( Minor CAR 25 - Raised)
Close-out evidence:
Date Recorded>
Due
Date>
Date Closed>
Non-Conformance:
Objective Evidence:
Close-out evidence:
Date Recorded>
Due
Date>
Date Closed>
Non-Conformance:
Objective Evidence:
Objective Evidence:
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CAR # MYNI Indicator
CAR Detail
Close-out evidence:
List of Observations
OBS # Indicator Observation Detail
01 1.1.1 Records of requests and responses must be maintained
Date Recorded
> 1 Oct 2009 Date Closed> 4 Oct 2011
Observation:
. Third party information request is time consuming and initially unsuccessful
Follow-up evidence:
Stakeholder communication protocol in place to discuss issues with Social Liaison Officer or Estate Manager
Flowchart for Stakeholder request procedure at Corporate and Estate level available
( Observation – 01 closed )
02 3.1.1 Annual budget with a minimum 2 years of projection.
Date Recorded
> 1 Oct 2009 Date Closed> 4 Oct 2011
Observation:
The unit does not have a clear and systematic basis for determining budgetary allocations for social, environmental/biodiversity conservation and occupational health and safety have no clear basis.
Follow-up evidence:
RSPO budget has been allocated inside estates and mill annual budget. The budget was divided into 4 category:
a. GC 40 - Environmental
b. GC 41 - Social
c. GC 42 - Occupational Safety and Health
d. GC 43 - Training and Promotion
(Observation – 02 closed )
03 4.1.1 Documented Standard Operating Procedures (SOP) for estates and mills
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OBS # Indicator Observation Detail
Date Recorded
> 1 Oct 2009 Date Closed> 5 Oct 2011
Observation:
Standard operating procedures for both mill and estate (StOPs) exist, gaps in StOP still need to be identified and filled in next review..
Follow-up evidence:
SOP for landfill is available. The SOP has been erected on each landfill of estates and mill. Refer field evidence.
As an addition, StOP for both mill and estates has been reviewed on July 2011. Revision of StOP will be carried when gaps have been identified. Seven StOPs has been reviewed.
- Manual Fertilizer Application for Immature and Mature area.
Land Preparation for New Planting and Replanting
Planting Leguminious Cover Plant
Weeding
Inspecting and Maintaining Oil Traps
Road Maintenance
Pruning
(Observation – 03 closed)
04 4.4.2 No construction of bunds/weirs/dams across the main rivers or
waterways passing through an estate.
Date Recorded
> 1 Oct 2009 Date Closed> 5 Oct 2011
Observation:
Currently temporary weirs are used in place of permanent bridges. e.g. Cantawan estate.
A compulsory visit must be undertaken during the next surveillance.
Follow-up evidence:
During the surveillance audit it was confirmed that in Cantawan estate, the weir was in fact a low-water crossing bridge ( Irish –bridge ) that is used to access the other side without damaging the base of the stream. The management realising the possibility of the ‘weir’ acting like a bund during extreme drought has since demolished the ‘weir’ and a wooden bridge is being built as an alternative.
( Observation 04 – Closed)
05 4.6.4 All information regarding the chemicals and its usage, hazards, trade and generic names must be available in language understood by workers or explained carefully to them by a plantation management official at operating
unit level.
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OBS # Indicator Observation Detail
Date Recorded
> 1 Oct 2009 Date Closed> 6 Oct 2011
Observation:
Understanding of hazards among workers is not consistent.
Follow-up evidence:
General awareness among field workers regarding chemical use
Regular training carried out for hazardous chemical use activities
The training has been included inside safety and health program which is will be carried out yearly
( Observation 05 - Closed)
06 6.5.2 Labour laws, union agreements or direct contracts of employment detailing
payments and conditions of employment (e.g. working hours, deductions,
overtime, sickness, holiday entitlement, maternity leave, reasons for
dismissal, period of notice, etc) are available in the language understood by
the workers or explained carefully to them by a plantation management
official in the operating unit.
Date Recorded
> 1 Oct 2009 Date Closed> 5 Oct 2011
Observation:
Evidence found for incomplete information provided for documentation on pay and conditions for individual foreign worker.(employment contract).
Follow-up evidence:
Employment contract of foreign workers were checked and it was
confirmed that it is similar to the other IOI production units. Details of
employment contract have been included inside worker employment
contract. The details include salary, public holidays, personal details etc.
Circular to inform workers regarding change of the contract agreement
details such as their salary rate, has been displayed in notice board.
(Observation 06 - Closed).
07 4.4.1 Protection of water courses and wetlands, including maintaining and restoring
appropriate riparian buffer zones at or before replanting along all natural
waterways within the estate.
Date Recorded
> 6 Oct 2011 Date Closed>
Observation:
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OBS # Indicator Observation Detail
Evidence of spraying on boundary palms next to water source in riparian reserve at Baturong 3
(New Observation raised – 07)
Follow-up evidence:
08 4.4.5 Monitoring of water usage in mills (tonnage water use/tonne FFB
processed).
Date Recorded
> 4 Oct 2011 Date Closed>
Observation:
Flow meter recorder, Mr Latif , at the water treatment plant at the mill do not have proper record book to record the reading.
( Observation 08 - Raised )
Follow-up evidence:
OBS # Indicator Observation Detail
09 4.6.5 Annual medical surveillance as per CHRA for plantation pesticide operators
Date Recorded>
6 Oct 2011
Due Date>
Date
Closed>
Observation:
Many workers that were medically inspected by OHD Mansor Klinik Sdn Bhd have same height, weight, BMI and blood pressure.
( Observation 09 - Raised)
Follow-up evidence:
10 5.3.2 Date Recorded>
4,6 Oct 2011
Due Date>
Date
Closed>
Observations:
Having identified wastes and pollutants, an operational plan should be developed and implemented, to avoid or reduce pollution.
Objective Evidence:
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OBS # Indicator Observation Detail
BR 3 & Mill recycle bin . Scheduled Waste Oil drum used as recycle bin at linesite
( Observation 10 - Raised )
Follow-up evidence:
5.2 Certified organisations acknowledgement of internal responsibility
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It is acknowledged that the assessments cited in this surveillance report have been carried out as
stipulated and we confirm the acceptance of the assessment report contents including
assessment findings.
Sign on behalf of:
Mr. Too Heng Liew
Head of Sustainability (Malaysia/Indonesia)
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__ IOI Corp. Bhd. Membership on RSPO being suspended due to Sarawak project
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* Certified Oil Mill
** Completed the Audit
*** In Preparation
NAME OF THE PLANTATION MANAGEMENT UNIT:
Estates Size (ha) Location Other Information
Pamol Sabah Oil Mill, Sabah (Audited in May 2008).
Meliau Estate. 2,998 Sandakan, Sabah
Bayok Estate. 2,210 Sandakan, Sabah
Tindakon Estate. 1,579 Sandakan, Sabah
Rungus Estate. 2,560 Sandakan, Sabah
Nangoh Estate. 1,834 Sandakan, Sabah
Ulu Estate. 2,331 Sandakan, Sabah
Sugut Estate (certification under IJM)
713 Sandakan, Sabah 100% Crop sent to IJM Plantation Oil Mill.
Sakilan Oil Mill, Sabah (Audited in November 2008).
Sakilan Estate. 2,142 Sandakan, Sabah
Linbar 1 Estate. 2,458 Sandakan, Sabah
Linbar 2 Estate. 1,842 Sandakan, Sabah
Pamol Kluang Oil Mill, Peninsular (Audited in April 2009).
Pamol Barat Estate. 2,213 Kluang, Johor
Mamor Estate. 1,902 Kluang, Johor
Pamol Timur Estate. 2,167 Kluang, Johor
Swee Lam Estate. 1,234 Kluang, Johor
Unijaya Estate. 1,194 Kluang, Johor
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Kahang Estate. 2,271 Kluang, Johor
Gomali Oil Mill, Peninsular (Audited in August 2009).
Bukit Serampang. 2,725 Tangkak, Johor
Gomali. 3,595 Segamat, Johor
Sagil. 2,518 Tangkak, Johor
Paya Lang 1,476 Segamat, Johor
Tambang. 2,020 Segamat, Johor
Reagent Estate. 2,313 Tampin, N. Sembilan
Kuala Jelai. 678 K. Pilah, N. Sembilan
Bukit Dinding. 1,660 Bentong, Peninsular
Bahau. 3,028 K. Pilah, N. Sembilan
Bertam Estate 734 Malacca.
Jasin Lalang 2305 Malacca
Baturong Oil Mill, Sabah (Audited in September 2009).
Baturong 1 2,822 Lahad Datu, Sabah
Baturong 2 2,351 Lahad Datu, Sabah
Baturong 3 1,858 Lahad Datu, Sabah
Cantawan 1,452 Lahad Datu, Sabah
Bukit Leelau Oil Mill, Peninsular (Certified in December 2009).
Bukit Leelau Estate. 2,096 Pekan, Pahang
Merkassar Estate 1,216 Pekan Rompin, Pahang
Merchong.Estate 1,952 Pekan, Pahang
Detas Estate. 2,301 Pekan, Pahang
Mayvin Oil Mill, Sabah. (plan to be certified in Aug 2010).
Mayvin 1. Mayvin 1. Mayvin 1.
Mayvin 2 / 3. Mayvin 2 / 3. Mayvin 2 / 3.
Mayvin 5. Mayvin 5. Mayvin 5.
Mayvin 6. Mayvin 6. Mayvin 6.
Tangkulap Tangkulap Tangkulap
Pukin Oil Mill, Peninsular (plan to be certified in Dec 2010)
Leepang A Estate. 2,404 Rompin, Pahang
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Laukin A Estate. 1,620 Rompin, Pahang
Shahzan IOI. 3,204 Rompin, Pahang
Segamat Estate. 1,946 Segamat, Johor
Pukin Estate. 2,437 Pekan Rompin, Pahang
Ladang Sabah Oil Mill (plan to be certified in Jun 2012)
Luangmanis 2505 Sandakan, Sabah Terusan Baru / Mayvin 4 2118 Sandakan, Sabah
Moynod. 2804 Sandakan, Sabah
Laukin. 1998 Sandakan, Sabah
Sg. Sapi. 1220 Sandakan, Sabah
Labuk 1646 Sandakan, Sabah
Bimbingan 1. 1795 Sandakan, Sabah
Bimbingan 2 1735 Sandakan, Sabah
Syarimo Oil Mill, Sabah. (plan to be certified in Jan 2012).
Syarimo 1 Syarimo 1 Syarimo 1
Syarimo 2 Syarimo 2 Syarimo 2
Syarimo 3 Syarimo 3 Syarimo 3
Syarimo 4 Syarimo 4 Syarimo 4
Syarimo 5 Syarimo 5 Syarimo 5
Syarimo 6 Syarimo 6 Syarimo 6
Syarimo 7 Syarimo 7 Syarimo 7
Syarimo 8 Syarimo 8 Syarimo 8
Syarimo 9 Syarimo 9 Syarimo 9
Leepang Oil Mill, Sabah (plan to be certified in Feb 2012).
Permodalan 1. 2,131 Lahad Datu, Sabah
Permodalan 2. 1,829 Lahad Datu, Sabah
Permodalan 3. 2,437 Lahad Datu, Sabah
Permodalan 4. 1,760 Lahad Datu, Sabah
Leepang 1. 2,229 Lahad Datu, Sabah
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Leepang 5. 1,658 Lahad Datu, Sabah
Morisem 5. 1,798 Lahad Datu, Sabah
Morisem B Oil Mill, Sabah (plan to be certified Jul 2012).
Tas 1,168 Lahad Datu, Sabah
Halusah. 760 Lahad Datu, Sabah
Morisem 1 1,919 Lahad Datu, Sabah
Morisem 2 1,892 Lahad Datu, Sabah
Morisem 3. 1,886 Lahad Datu, Sabah
Morisem 4. 1,909 Lahad Datu, Sabah
Leepang 2. 2,003 Lahad Datu, Sabah
Leepang 3. 1,846 Lahad Datu, Sabah
Leepang 4 1,388 Lahad Datu, Sabah
Rinwood Pelita, Miri (to be audited by certification unit concerned)
Sejap Estate Total 5,000 ha Planted 1,863
ha
Baram, Sarawak 100% crop sent to Boustead & Rimbunan Hijau, oil mills, which do not belongs to IOI.
Tegai Estate Total 4,040 ha Planted 1,694
ha
Baram, Sarawak 100% crop sent to Boustead & Rimbunan Hijau oil mills, which do not belongs to IOI.
Harita Group, Indonesia
PT Kalimantan Prima Agro Mandiri (PT KPAM)
20,000 Kalimantan, Indonesia Company is focusing on PT SKS (5000 hectares) and PT. BNS (5000 hectares) to complete planting by the end of 2009. Planting started in January 2009 (PT SKS) and March 2009 (PT BNS). As that of August 2009, 3310 hectares were cleared for planting in PT BNS, while in PT SKS 1913.87 hectares were cleared. Both operating units had cleared total about 5200 hectares and planted about 3300 hectares until August 2009. The rest of the land, P.T. KPAM, PTBSS, and PT KSL cultivation permits are yet to receive from the Government at the time of audit. PT SKS and PT BNS the tentative scheduled for RSPO audit around December 2012 and by then IOI will build up oil mill there in 2012 when 2009 planting gets matured.
PT Berkat Nabati Sejahtera (PT BNS)
13,500 Kalimantan, Indonesia
PT Sukses Karya Sawit (PT SKS)
13,500 Kalimantan, Indonesia
PT Bumi Sawit Sejahtera (PT BSS)
11,000 Kalimantan, Indonesia
PT Ketapang Sawit Lestari (PT KSL)
24,500 Kalimantan, Indonesia
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Appendix 2
Latest development in the IOI Sarawak land issue
Latest Progress Statement from the RSPO on IOI Corporation Berhad matter ( as of 3rd May 2012 )
Case 1 - Dispute With The Long Teran Community In Sarawak, Malaysia:
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Case 2 - Dispute In Ketapang District, Kalimantan, Indonesia:
This case was also mentioned in the website as above:
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