PUBLIC SUMMARY 1ST RSPO SURVEILLANCE ASSESSMENT

AUDIT DATE: 25th – 27th MAY 2015

FELDA GLOBAL VENTURES PLANTATIONS (MALAYSIA) SDN BHD, FELDA NITAR PALM OIL MILL COMPLEX CERTIFICATION UNIT

MERSING, JOHOR DARUL TAKZIM MALAYSIA

Prepared by:

Food, Agriculture and Forestry Section SIRIM QAS INTERNATIONAL SDN BHD

Building 4, SIRIM Complex, No. 1, Persiaran Dato’ Menteri, Section 2, P.O. Box 7035, 40700 Shah Alam, Selangor,

MALAYSIA Tel : 603-5544 6440 Fax : 603-5544 6763

Website: www.sirim-qas.com.my

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SIRIM QAS INTERNATIONAL SDN. BHD. Building 4, SIRIM Complex, No. 1 ,Persiaran Dato’

Menteri, Section 2, P.O. Box 7035, 40911 Shah Alam, Selangor, Malaysia.

File Ref. :EF 03060001

RSPO PRINCIPLES & CRITERIA MY-NI

ANNUAL SURVEILLANCE ASSESSMENT (ASA1) REPORT

CLIENT : FELDA GLOBAL VENTURES PLANTATIONS (MALAYSIA) SDN BHD, FELDA NITAR PALM OIL MILL COMPLEX CERTIFICATION UNIT CERTIFICATION UNIT (MILL AND SUPPLY BASE INCLUDING SMALLHOLDER (if applicable)

1) NITAR PALM OIL MILL 2) FELDA NITAR 1 3) FELDA NITAR 2 4) FGVPM NITAR TIMUR

AUDIT DATE : 25-27 MAY 2015

DURATION : 9 auditor days

STANDARD : RSPO P&C MYNI 2014 SCOPE OF REGISTRATION (specify sites, tonnages and/or approved processes and model(s) : PRODUCTION OF CRUDE PALM OIL AND PALM KERNEL USING MASS BALANCE MODEL

NO OF EMPLOYEES (Applicable to the scope of activities audited) : 471

The following attachments form part of this report:

Non-conformity Report(s) List of additional site(s)

√

Page 3 of 83

Table of contents

List of Abbreviations 4

1.0 Scope of Surveillance Assessment Report

1.1 Introduction…………………………………………………………………………………. 6

1.2 Location of Mill and Supply Base………………………………………………………… 7

1.3 Production Volume of All Certified Products……………………………………………. 7

1.4 Certification Details………………………………………………………………………… 9

1.5 Description of Fruit Supply Base…………………………………………………………. 9

1.6 Organisational Information / Contact Person(s)………………………………………… 10

2.0 Assessment Process

2.1 Certification Body…………………………………………………………………………... 10

2.2 Assessment Team Members……………………………………………………………… 11

2.3 Assessment Methodology and Programme……………………………………………... 12

3.0 Assessment Findings

3.1 Summary of Findings………………………………………………………………………. 13

3.2 Identified Non-conformities………………………………………………………………... 63

3.3 Status of Non-conformities Previously Identified……………………………………….. 63

3.4 Issues Raised by Stakeholders…………………………………………………………… 63

3.5 Noteworthy Positive and Negative Observation………………………………………… 63

4.0 Assessment Recommendation and Date of Closing Non-conformities………………………. 63

5.0 Date of Next Surveillance Assessment…………………………………………………………... 64

List of Appendix

Attachment 1 : Location map of FELDA Nitar Certification Unit………………………………. 65

Attachment 2 Location map of FELDA estates in the Nitar Certification Unit……………… 66

Attachment 3 Location map of FGVPM Nitar Timur…………..………………………………. 67

Attachment 4 Location map of FELDA Nitar 1…………………………………………………. 68

Attachment 5 Location map of FELDA Nitar 2…………………………………………………. 69

Attachment 6 : Assessment Programme………………………………………………………… 70

Attachment 7 : Detail of Non-conformities and Corrective Actions Taken…………………… 74

Attachment 8 : Verification Of Previous Audit Findings………………………………………… 80

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List of Abbreviations

BOD Biochemical Oxygen Demand

B.Sc. Bachelor of Science

CA Collective Agreement

CHRA Chemical Health Risk Assessment

COD Chemical Oxygen Demand

CPO Crude Palm Oil

CU Certification Units

DID Drainage and Irrigation Department, Malaysia

DOE Department of Environment

DOSH Department of Occupational Safety and Health

EAI Environmental Aspect Identification

EB Executive Board

EFB Empty Fruit Bunch

EIA Environmental Impact Assessment

EIE Environmental Impact Evaluation

EMP Environmental Management Plan

EPD Environmental Protection Department (Sabah)

EPF Employees Provident Fund

EQA Environmental Quality Act

ERT Endangered, Rare and Threatened Species

FFB Fresh Fruit Bunch

FMA Factory and Machinery Act

FSC Forest Stewardship Council

GAP Good Agricultural Practice

GPS Global Positioning System

Ha Hectares

HCV High Conservation Value

HIRARC Hazard Identification, Risk Assessment and Risk Control

IPM Integrated Pest Management

ISO International Organization for Standardization

JCC Joint Consultative Committee

MSDS Material Safety Data Sheet

MPOA Malaysian Palm Oil Association

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MPOB Malaysia Palm Oil Board

MYNI Malaysia National Interpretation

MYNI – WG Malaysia National Interpretation – Working Group

NADOOPOD Notification of Accident, Dangerous Occurrence, Occupational Poisoning and Occupational

Disease

NCR Non-Conformity Report

NGO Non-Governmental Organisation

OER Oil Extraction Rate

OG Oil & Grease

OSH Occupational Safety and Health

OSHA Occupational Safety and Health Act

OHSAS Occupational Health and Safety Assessment Series

Ph.D. Doctor of Philosophy

PIC Person-In-Charge

PK Palm Kernel

PMM Proposal of Mitigation Measure

PIR Public Information Request

POM Palm Oil Mill

POME Palm Oil Mill Effluent

PPE Personal Protective Equipment

PTW Permit To Work

QMS Quality Management System

RSPO Roundtable on Sustainable Palm Oil

SIA Social Impact Assessment

SOCSO Social Security Organization

SOP Standard Operating Procedure

UKAS United Kingdom Accreditation Services

USECHH Use and Standards of Exposure of Chemicals Hazardous to Health

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1.0 Scope of Surveillance Assessment Report

1.1 Introduction

The certification unit (CU) of Felda Global Ventures Plantations (Malaysia) Sdn Bhd, Nitar Palm

Oil Mill Complex (FGVPM-NCU), was assessed for certification against the RSPO Principles

and Criteria for Sustainable Palm Oil Production, including smallholder, Malaysia National

Interpretation Working Group (RSPO MYNI) and RSPO Supply Chain Certification System

(SCCS) Requirements. The smallholder schemes were assessed against the national guidance

for scheme smallholders.

The CU comprised the Nitar POM, FELDA Nitar 1, FELDA Nitar 2 and FGVPM Nitar Timur. This

certification assessment covered FELDA Nitar Palm Oil Mill and its supply bases, that is, two

smallholders’ schemes land owned by settlers and one estate like manner belonging to FELDA.

It did not include the third party FFB suppliers. The main assessment was conducted on 17th to

19th December 2012.

With the exception of some smallholders tending their own farm, the rest of them farm-out their land to FELDA who arranged it be managed by FELDA Technoplant Sdn Bhd (FTPSB). The plantation like estate is managed directly by FELDA Plantation Sdn Bhd (FPSB). These companies (FTPSB and FPSB) are managed by FELDA. FTPSB is formed to undertake the individual work that were supposed to be done by settlers (from planting to harvesting of FFB and maintenance of farm) but now done collectively in an estate like manner to capitalize on economies of scale to conform to Good Agricultural Practices. On the other hand, FPSB is formed to manage areas (that was not given to settlers) in a commercial manner belonging to FHB. The difference between settler’s scheme and FELDA Plantation is that each scheme has two managers. One FELDA Manager is primarily tasked to oversee the socio-economic aspect and welfare of the settlers whereas on the field operational support he is assisted by one FTPSB Manager. Unlike the smallholder schemes the estate is solely managed by a Plantation Manager of FPSB who oversees overall aspect of plantation management and welfare of his employees. There is a subsidiary company of FGVH, FELDA Agriculture Services Sdn Bhd (FASSB) whose

core business is research of palm oil seeds, producing and selling seedlings, rat baits and the

provision of foliar and soil analysis, whom FGV-NCU can call upon to assist on a need basis.

At FGVPM-NCU each settler was assigned to a particular settlement, and was given 10 acres (4.0 ha.) of land to cultivate oil palms. All of them planted oil palm trees as their first crop and continue to do so with replanting. At FPSB Nitar Timur its first crop too was oil palm. As a scheme participant, all settlers were required to reside at the settlement itself, and were allotted an additional 0.25 acres (0.10 ha) each in a planned village, where their home - built by FELDA - is located. About 20 houses made up a block and each block chose its own representatives who voice their concerns to their Scheme Development Committee (JKKR) and FELDA Management. All basic infrastructures, such as piped water, electricity, schools, clinics, and places of worship were provided either by FELDA or through government agencies. The costs of acquiring, developing and allocating the land were borne by loans made to FELDA settlers. These loans were to be repaid in monthly installments deducted from the settlers' income over a 15-year period. At Nitar CU, 881 of 884 settlers had made full settlement and 884 had already obtained their land title. Although settlers were supposed to focus on agricultural activities, they also were encourage

by the government to participate in non-farm activities, such as entrepreneurship in SAWARI

Program (food and craft industry) Agro-based industry, Business, Services and Related

activities, etc, as side income to help alleviate their financial needs.

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FGVPM-NCU commenced its operations in 1978 with a processing capacity of forty (40) metric

tonnes of FFBs per hour. The total combined land area of the three estates is 6,819.32 hectares

(Ha) of which 6,304.11 Ha had been planted with oil palm.

1.2 Location of Mill and Supply Base

FGVPM - NCU covers one palm oil mill and three oil palm estates, all located at Mersing, Johor,

Malaysia. The locations and area details of the mill and estates are shown in Table 1.

Table 1: Location Coordinates and Area of FGVPM - NCU (Mill and Estates)

Mill/Estate

Year of

establishm

ent

Area (Ha) GPS Location (Office)

Titled Planted Latitude Longitude

Nitar Palm Oil

Mill 1983 NA NA 2° 40.5' 04" N 103° 65' 15" E

FELDA Nitar

1 1979/1980 2,444.74 2,294.15 2° 23' 04" N 103° 42' 34" E

FELDA Nitar

2 1978/1979 2,115.07 2,115.07 2° 23' 33" N 103˚ 40’ 30’’E

FGVPM Nitar

Timur 1988/1989 2,259.51 1,894.89 2˚ 22’ 38’’N 103˚ 46’ 09’’ E

Total 6,819.32 6,304.11

The location map of the CU is shown as in Attachment 1, 2, 3, 4 and 5.

1.3 Production Volume of All Certified Products

Table 2: Actual plus projection of FFB contribution by each estates and other sources to Nitar POM of the last reporting period (June 2014 to May 2015)

Operating Unit FFB Contribution

MT %

Nitar Palm Oil Mill 0 0

FELDA Nitar 1 32,681 17

FELDA Nitar 2 23,915 13

FGVPM Nitar Timur 33,658 18

Outsiders (non-certified) 96,511 52

Total 186,765 100

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Table 3: Projected FFB Contribution by each Estate and other sources to Nitar POM for the next reporting period (June 2015 to May 2016)

Operating Unit FFB Contribution

MT %

FELDA Nitar 1 46,247 22%

FELDA Nitar 2 28,757 13%

FGVPM Nitar Timur 35,529 16%

Outsiders (non-certified) 106,800 49%

Total 217,333 100%

Table 4: Actual FFB received and CPO & PK dispatch by Nitar POM of the last reporting period (June 2014 – May 2015)

Total (MT)

FFB Received 186,765

FFB Processed 186,765

CPO Produced 17,924

PK Produced 5,415

Certified CPO sold as Mass Balance 0

Certified PK sold Mass Balance 4,343.92

CPO sold as non-certified 34,313.17

PK sold as non-certified 5,638.65

Table 5: Projected FFB received and CPO & PK dispatch by SKPOM for the next reporting (June 2015 – May 2016)

Total (MT)

FFB Received 217,333

FFB Processed 217,333

CPO Production 21,952

PK Production 6,632

Certified CPO to be sold as Mass Balance 0

Certified PK to be sold Mass Balance 5,378

CPO to be sold as non-certified 43,466

PK to be sold as non-certified 6,574

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1.4 Certification Details

Parent company : Felda Global Ventures Plantations (Malaysia) Sdn Bhd

RSPO Membership Number : 1-0013-04-000-00

Member since : 2010

Certificate Number : RSPO 0023

Date of previous assessment : 17th to 19th December 2012

Date of certification : 13th June 2014

1.5 Description of Fruit Supply Base

The planting profiles of all the directly managed supply bases are stated in Table 6 to Table 8.

Table 6: FELDA Nitar 1

Plot Year of Planting Planting Cycle

Maturity Status Planted Area (ha)

Percentage of Planted Area

01 2008 2nd generation Mature 978.78 43%

02 2008 2nd generation Mature 1,315.37 57%

Total 2,294.15 100%

Table 7: FELDA Nitar 2

Plot Year of Planting Planting Cycle

Maturity Status Planted Area (ha)

Percentage of Planted Area

01 2008 2nd generation Mature 1,060.26 50%

02 2009 2nd generation Mature 744.97 35%

1F 2008 2nd generation Mature 49.90 2%

2P 2012 2nd generation Mature 160.47 8%

2F 2012 2nd generation Mature 99.47 5%

Total 2,115.07 100%

Table 8: FGVPM Nitar Timur

Plot Year of Planting Planting Cycle

Maturity Status Planted Area (ha)

Percentage of Planted Area

PM98B 1988/1989 1st generation Mature 1,543.88 81%

PM00C 1991/1992 1st generation Mature 67.44 4%

PM08D 2008/2009 1st generation Mature 283.57 15%

Total 1,894.89 100%

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1.6 Organisational Information / Contact Person(s)

Felda Global Ventures Plantation (Malaysia) Sdn Bhd through its Headquarter in Kuala Lumpur

is responsible for overseeing Nitar CU and other management units. The correspondence

address and contact persons are as detailed below:

Address:

Felda Global Ventures Plantation (Malaysia) Sdn Bhd,

Tingkat 8, Balai FELDA,

Jalan Gurney 1,

54000 Kuala Lumpur,

Malaysia.

Contact person:

Norazam Abdul Hameed

Head, Plantations Sustainability & Quality Management

Phone: +603 2698 7772

Fax: +603 2691 1378

E-mail: norazam.h@feldaglobal.com

2.0 Assessment Process

2.1 Certification Body

SIRIM QAS International Sdn. Bhd. is the oldest and leading certification, inspection and testing

body in Malaysia. SIRIM QAS International provides a comprehensive range of certification,

inspection and testing services which are carried out in accordance with internationally

recognised standards. Attestation of this fact is the accreditation of the various certification and

testing services by leading national and international accreditation and recognition bodies such

as the Department of Standards Malaysia (STANDARDS MALAYSIA), the United Kingdom

Accreditation Services (UKAS), the International Automotive Task Force (IATF), and the

Secretariat of the United Nations Framework Convention for Climate Change (UNFCC). SIRIM

QAS International is a partner of IQNet, a network currently comprising of 36 leading certification

bodies in Europe, North and South America, East Asia and Australia.

SIRIM QAS International has vast experience in conducting assessment related to RSPO

assessment. We have certified more than a hundred palm oil mills and several estates to ISO

14001 & OHSAS 18001. We have also conducted pre assessment against RSPO Principle and

Criteria.

SIRIM QAS International was approved as a RSPO certification body on 21st March 2008.

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2.2 Assessment Team Members

The assessment team consisted of five assessors and one trainee assessor. The details of the

assessors and their qualification are detailed below:

Member of the Assessment Team

Role/area of RSPO requirements

Qualifications

Mohd Razman Salim Assessment Team Leader / Workers & community issues, HCV

Auditing various schemes i.e. OHSAS 18001,

RSPO P&C and MC&I

6 years’ experience in Forest Management,

HCVF and ecology

Successfully completed Lead Assessor Course for ISO 9001, ISO 14001, OHSAS 18001 and RSPO P&C

B.Sc.Forestry - Universiti Putra Malaysia

Zulkarnain Abdullah Assessor / Supply Chain

Seventeenth years working experience related to wood related product

Successfully completed Lead Assessor training for OHSAS 18001 in 2009

Successfully completed Lead Assessor training for ISO 9001 in 2009.

Successfully completed accredited Lead Assessor training for RSPO SC in 2014 and 2015 B. Sc. Forestry

Selvasingam T Kandiah

Assessor / Good

Agricultural Practices

(GAP), environmental

issues

B. Sc. (Hons) Agriculture – University of Agricultural Sciences, Hebbal, Banglore, India (1969-1973)

A Planter with Kumpulan Guthrie Berhad (1995-2002 – retired)

Inclusive of One year in Liberia and 2 years in Estate Department in Guthrie head quarters

Experience in Managing:

Nursery : Rubber and Cocoa

Immature Area : Cocoa Replant, Rubber Replant, Oil Palm Replant & Oil Palm New Clearing

Mature Area: Cocoa, Rubber & Oil Palm.

Jagathesan A/L Suppiah

Assessor,

environmental and safety

issues related to mill and

plantation

More than 25 years working experience in Manufacturing concerns at various Managerial position, Managing Operation, Quality Assurance & Regulatory Affairs and Quality & Process Control Disciplines.

Collected more than 50 auditor days in auditing ISO RSPO P&C and RSPO Supply Chain Schemes

Experience of carrying out audits on more than 700 companies around Malaysia for the past 15 years for various schemes i.e. ISO 9001, ISO 13485, ISO 14001, OSHAS 18001 and GMP/FDA regulations

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Successfully completed Lead Assessor training for :

i) ISO 9001, ii) ISO 14001 iii) OSHAS 18001 iv) RSPO P& C v) RSPO Supply Chain vi) ISO 13485 vii) Medical Device – Good Distribution

Process

Bachelor of Chemical Science & Minoring in Management (Hons)

Diploma in Statistical Process Control

2.3 Assessment Methodology and Programme

The surveillance assessment was guided by the sampling formula of 0.8 √y. Nonetheless, all

the estates were visited in this assessment but were assessed with different elements of the

standard. The mill is assessed in every assessment.

The assessment team carried out field and office assessments for conformance against the

RSPO-MY principles and criteria. The visits also covered HCV habitats, labour lines, storage

areas and other workplaces.

Common systems were identified and specific evidences were recorded for individual estates.

Interviews, particularly those with employees, local communities and suppliers were conducted

formally as well as informally, without the presence of company management personnel. In

addition to that, records as well as other related documentation were also reviewed.

It is important to note that the finding from this assessment is based on samples taken from the

organization activities, procedures, records etc. Statistically, there is always a possibility that

one or more problematic issues/areas will remain unidentified during the course of this audit.

The absence of non-compliance in any area or activity does not necessarily imply that no lapses

or non-compliance exist.

The assessment programme is in Attachment 6.

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3.0 Assessment Findings

3.1 Summary of Findings

The findings of the first Annual Surveillance Assessment were presented during the on-site closing meeting. There were twelve major and thirteen minor

nonconformity reports (NCR) being raised on the FGVPM - NCU compliance against the requirements of the RSPO MY-NI. The details of the NCR and the

corrective actions taken are as in Attachment 7.

The detailed findings of the assessment on the CU’s compliance with the requirements of the RPSO MYNI are as follows:

Principle 1: COMMITMENT TO TRANSPARENCY

Clause Indicators Comply

Yes/No Findings

C 1.1

Growers and millers

provide adequate

information to

relevant

stakeholders on

environmental,

social and legal

issues relevant to

RSPO Criteria, in

appropriate

languages and

forms to allow for

effective

participation in

decision making.

1.1.1 There shall be evidence that

growers and millers provide

adequate information upon

request for information on

(environmental, social and/or

legal) issues relevant to

RSPO Criteria to relevant

stakeholders for effective

participation in decision

making.

Yes

The CU has continued to implement communication procedure and maintain records on

requests for information and documents that were related to the RSPO Criteria as

described in the established procedures for estates. Settlers at FELDA Nitar 2 has

received all information/requirements with reference to RSPO titled “Surat Akuan” dated

14 April 2015. However, there was no request for information from government agencies

and stakeholders for Nitar POM, FELDA Nitar 2 and FGVPM Nitar Timur.

The estate also has established mechanism to channel such queries through regular

meetings with stakeholders.. Various issues and complaints were heard by the

management and decisions made for subsequent action

The following visits by the regulators verified :

i) DOSH visit monitoring Log maintained – last visit : 14th April, 2015 – to carry out periodic Boiler & machinery Inspection - recommendation has been taken into consideration.

ii) DOE visit monitoring Log maintained – last visit – 2nd March, 2015 – Inspection of Schedule Waste Management -mitigating actions taken for matters identified.

iii) Fire Department - Correspondence to obtain ‘Fire Cert’ – verified correspondence dated 20th January, 2015

iv) MPOB – Inspection visit d/d : 29th Oct, 2014 – Positive Recommendation

1.1.2 Records of requests for

information and responses

Yes

FELDA Nitar 2 has continued to maintain records of requests and responses for settlers

in “Buku Rekod Aduan Peneroka” while in FGVPM Nitar Timur they were maintained in a

“Buku Aduan”. However, both record only received complaints from settlers and workers.

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shall be maintained. Major

Compliance

C 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.

1.2.1 Land titles/user rights

(Criterion 2.2);

Yes

FGVPM-NCU has made publicly available the related management document as required

by this Criterion through a letter sent to stakeholders dated 7th September 2012. Land

titles of FGVPM Nitar Timur and FELDA Nitar 2 were kept in their office.

Occupational health and

safety plans (Criterion 4.7);

Yes Occupational Health & Safety Plan has been established eff : 1st Jan, 2015 – Indicators set in the plan are being monitored – verified the progress monitoring of the programs identified. Cross refer to C 4.7.

Plans and impact

assessments relating to

environmental and social

impacts (Criteria 5.1, 6.1, 7.1

and 7.8)

No

Environmental Impact Plan has been established and are currently being monitored –

latest performance monitoring carried out on 1st Feb, 2015.

The Environmental Impact Indicators have been established :

The following sampled for verification :

a) 100% compliance to DOE licensing Requirements b) BOD final Discharge ≤ 100 ppm c) No open burning d) Reduce Water Consumption ≤ 1.00 MT of water / MT of BTS processed. e) Reduce Electricity consumption ≤ 20 Kwh / MT of BTS processed.

Plans and impact assessments for social impacts were not made available to public at FGVPM Nitar Timur. Thus, a Minor NCR MRS 01 2015 was raised by auditor.

HCV documentation

summary (Criteria 5.2 and

7.3);

No

During audit, auditor did not found any evidence that Nitar POM, FGVPM Nitar Timur and

FELDA Nitar 2 have informed their stakeholders that all management documents

including HCV documentation summary, as required in Indicator 1.2.1 were made

available to public. Thus, a Minor NCR MRS 01 2015 was raised by auditor.

Pollution prevention and

reduction plans (Criterion

5.6);

Yes Pollution Prevention Plan has been incorporated in the Environmental Impact Plan - has

been established.

Details of complaints and

grievances (Criterion 6.3);

Yes

Details of complaints and grievances were recorded in the grievances book (Buku Aduan

Peneroka and Buku Aduan RSPO), suggestion box, verbally and through stakeholders

meeting between Nitar CU with internal (workers, staffs and settlers) and external

stakeholders (suppliers, contractors and third party FFB supplier) such Joint Committee

Consultation Meeting (JCC) as viewed and verified by auditor at FGVPM Nitar Timur,

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FELDA Nitar 2 and Nitar POM. The estate has maintained records of requests and

responses especially on repairs/maintenance of workers quarters. The complaints and

requests were recorded in “Buku Aduan & Rungutan” which stated date of complaint and

dates attended to and by whom.

Negotiation procedures

(Criterion 6.4);

Yes

Specific procedure titled ‘Prosedur Mengenalpasti Hak Perundingan dan Adat (ML-1A/L2-

PR12(0))’ and ‘Prosedur Penghitungan dan Pengagihan Pampasan (ML-1A/L2-PR13(0))’

were made available at the visited sites; Nitar POM, FGVPM Nitar Timur and FELDA Nitar

2.

Continual improvement plans

(Criterion 8.1);

No

CU has established continual improvement plans with regards to Environmental and

Occupational Safety & Health and the corresponding ‘Policies’ endorsed by the Top

management. The concerned policy on the followings are also available at the website. In

addition to the website, the policies were also displayed at various locations including the

main notice boards of the estates, mill offices and muster ground notice boards for

employees and visitors to view.

FELDA Nitar 2 and FGVPM Nitar Timur have established social continuous improvement

plans for 2015 titled ‘Penambahbaikan Berterusan Impak Sosial’. The estates also have

listed out their future plan for their staffs, workers and settlers community as explained in

Indicator 8.1. However, continual improvement plan for social was not available at Nitar

POM. Thus, a Minor NCR MRS 01 2015 was raised by auditor.

Public summary of

certification assessment

report;

Yes

Public summary of certification assessment report for Stage 2 was made publicly

available. The report could be assess through this link:

http://www.sirim-qas.com.my/attachments/article/364/PS%20-

%20Nitar%20Stage%202%20rev1.pdf

Human Rights Policy

(Criterion 6.13).

Yes

Human Rights Policy was made available and displayed at noticeboard at the Nitar POM,

FGVPM Nitar Timur and FELDA Nitar 2 with endorsement from President & CEO FGV

dated 1 June 2014.

C 1.3

Growers and millers

commit to ethical

conduct in all

1.3.1 There shall be a written policy

committing to a code of

ethical conduct and integrity

in all operations and

Yes

Code of ethical conduct and integrity was made available at the Nitar POM, FGVPM Nitar

Timur and FELDA Nitar 2. Briefing to all level of the workforce has been conducted during

morning musters by manager or assistant manager. The effectiveness of the briefing was

verified by auditor through interview with field workers during site visit.

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business operations

and transactions.

transactions, which shall be

documented and

communicated to all levels of

the workforce and operations.

Minor Compliance

Principle 2: COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

Clause Indicators Comply

Yes/No Findings

C 2.1

There is compliance

with all applicable

local, national and

ratified international

laws and

regulations.

2.1.1 Evidence of compliance with

relevant legal requirements

shall be available.

Major Compliance

No

Nitar POM, FGVPM Nitar Timur and FELDA Nitar 2 were complied with all applicable

local, national and ratified international laws and regulations. For Minimum Wage Order,

2012, all employees received minimum wages. Samples of the wages statement were

sampled and in compliance refer copies of the pay slip. The deduction for EPF and

SOCSO were made evident in the details of the pay slip. Children & Young (Employment)

Act, 1966, no employee below 18 years old are engaged in the employment of the mill.

Relevant licences and permits such as Foreign Workers Permits & Passports, MPOB

license, Energy Commission, Domestic Trade Ministry for diesel and Road tax for

Vehicles were valid.

To cite some:

i. MPOB licence No. 500913102000 was valid till 31 March 2016 in FELDA Nitar 2 and No. 558878002000 till 29 February 2016 in FGVPM Nitar Timur.

ii. Permit Diesel No. J005594 for 16,380 litres was valid until 29 February 2016

iii. Permit Potongan Daripada Gaji Pekerja effective from 15 September 2000

iv. Lesen Melencong atau Mengabstrak Air Sungai no. 07/A/Mg/010 was valid for 2015.

CU has continued to comply with legal requirements as per indicator. Guided by the

established procedure, the annual evaluation of compliance has been carried out

concurrently with the review of legal register updated by PSQM eff April, 2015. The list of

applicable legal and other requirement was made available during the assessment. The

following legal requirements sampled for review :

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a) Factories and Machinery Act 1967 (Notification, Certificate of Fitness and Inspection Regulation 1970, Steam Boiler & Unfired Pressure Vessel Regulation 1970, Safety Health and Welfare 1970, Noise Exposure Regulation 1989, Person In Charge Regulation 1970 etc.

b) Occupational Safety and Health Act 1994 (NADOOPOD Regulation 2004, Safety Health Committee Regulation 1996, USECHH Regulation 2004) etc.

c) Environment Quality Act 1974 (Prescribed Premise (CPO) Regulations 1977, Clean Air Regulation 1978, Scheduled Waste Regulation 2005 etc.

d) Fire Services ( Fire Service Act 1984 & Fire Certificate Regulation 2001)

e) Housing and Amenities (Worker’s Minimum Standard of Housing and Amenities Act 1990)

f) Labour, EPF and SOCSO (Employment Act 1955, Employee Provident Fund Act 1991, Employees Social Security Act 1969

CU has obtained and renewed license and permits as required by the law. Amongst the licences or permit viewed were :

a) MPOB license: 508430204000 (validity period 1/3/13 - 28/2/14)

b) DOE Licence/ Jadual Pematuhan : JPKKS/14/004801 for 45 MT/hr and method of land application ( validity : 1st July, 2014 to 30th June, 2015 ) – Submission of Quarterly Reports – the following reports dated 4th April, 2015, 7th Jan, 2015, 8th Oct, 2014, 7th July, 2014.

The following Parameters Monitored : pH, BOD, COD, TS, SS, O&Grease, Ammonical Nitrogen & Total Nitrogen.

c) The following Pressure vessel inspection carried out by DOSH d/d : 14th April, 2015

i) Licenses for Steam Boiler No 3 – Registration No – JH PMD 1334 – validity 14th July, 2015

ii) Air Compressor – Registration No – JH PMT 12780 – validity 14th July, 2015.

iii) Condensate Seperator – registration No – JH PMT 18555 – Validity 14th July, 2015

d) ‘Smoke Density Indicator’ – Calibration by Mesra Alam Sekitar Cal Cert : SST/SA/R/2015A/1167 Cal date : 20th Dec, 2014 Exp date : 20th June, 2014

The following Discrepancy noted :

Page 18 of 83

For the following use of highly toxic pesticides – records using Form I, II & III, as as

required by Pesticides Act 1974 ( Act 149) & Regulations, Rules and Order – Highly Toxic

Pesticides Regulations 1996 – Second Schedule. Was not being adhered to. Major NC

JS – 2015 -01 raised.

i. Noted at Nitar Timur - the use of Monocrotophos ( highly toxic pesticides) and periodic spraying with Paraquat ( highly toxic pesticides ) and its mixture.

ii. Noted at Nitar 2 - the periodic spraying with Paraquat ( highly toxic pesticides ) and its mixture.

2.1.2

A documented system, which

includes written information

on legal requirements shall

be maintained

Minor Compliance

Yes

Nitar POM, FGVPM Nitar Timur and FELDA Nitar 2 have identified, documented and

maintained their legal register with written information on legal requirements which related

to their operation in their legal register titled ‘Register of Legal and Other Requirements’

(FGVPMI/L4/QOSHE-2.1 Pind. 0). FELDA Global Ventures headquarters were

responsible to track changes and the information was disseminated to all its plantations.

The applicable laws identified and recorded in the legal register included Pesticides Act

1974 and Regulations, Environmental Quality Act and Regulations, 1974, Factories and

Machinery Act and Regulations, 1967, Occupational Safety and Health Act 1994,

Employment Act 1955, Aboriginal Peoples Act 1954, Industrial Relations Act 1967 and

Children and Young Persons (Employment) Act 1966. The acts and its regulations were

evaluated for compliance annually.

CU maintains a comprehensive Legal register of all applicable Act, Regulations and relevant sections of these Act. The latest legal register update by PSQM eff April, 2015.

2.1.3 A mechanism for ensuring

compliance shall be

implemented.

Minor Compliance

Yes

There was evidence of continued compliance to legal requirements which had been

evaluated on an annual basis The mechanism of ensuring implementation was by :

i. Periodic reporting from operating units to headquarters ii. On site visits, inspections and discussions with relevant personnel iii. Assessments and audits like Internal Audits, PA visits (only for FGVPM Nitar

Timur) and by RSPO Audits iv. Consultation with RSPO team & management.

Some of the records made available and sighted in FGVPM Nitar Timur were PA’s reports

on visits made on 12 April 2014, Internal RSPO Audit made on 14 March 2015, Agronomic

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Reports on 18 August 2014. While in FELDA Nitar 2, FELDA Techno Plant SB and Internal

RSPO audits made in March 2015.

Monitoring of the validity of licenses/permits/certificate of fitness (CF) and Compliance to

the Legal requirements and applicable acts through Mill Compliance Exercise –

i. Nitar POM - Assessment done by Asst Mill Manager : En. Mustafa & Approved by Mill

Manager : d/d : 02/05/2015 – Evidence verified.

ii. Nitar Timur - Assessment done by Mohd Sani bin Ahmad : En. Mustafa & Approved

by Mill Manager : d/d : 16/03/2015 – Evidence verified.

2.1.4 A system for tracking any

changes in the law shall be

implemented.

Minor Compliance

Yes

The organisation monitor tracking of changes of applicable laws is fall under the

responsibility of FELDA’s PSQM Department at HQ level When there is any applicable

changes, the department will directly update the legal register and communicate with the

operating units.

FELDA Global Ventures headquarters continued to be responsible for tracking changes

and the information was disseminated to all its plantations. When there is any applicable

change, the department will then update the legal register and communicate to the

operating units.

Changes to Law and regulation are monitored by the Plantation sustainable Quality

Management (PSQM ) dept The latest changes to the Acts, has been updated in the

Legal register – verified.

C 2.2

The right to use the

land is

demonstrated, and

is not legitimately

contested by local

people who can

demonstrate that

they have

legal,customary or

user rights

2.2.1 Documents showing legal

ownership or lease, history of

land tenure (confirmation

from community leaders

based on history of customary

land tenure, recognised

Native Customary Right

(NCR) land) and the actual

legal use of the land shall be

available.

Major Compliance

Yes

The assessor sighted that there were clear land ownership documents for FGVPM Nitar

Timur and the smallholders at FELDA Nitar 2. Auditor has verified land title for FGVPM

Nitar Timur. The land title was made available at estate office. So, previous Major NCR#

NAJ-1 was satisfactorily closed. Sample of land title at FGVPM Nitar Timur as listed below:

1. No. HSD 4231 Borang 11AK, 99 years leased until 5 January 2103, 93.75 ha,

Agriculture - Oil Palm

2. No. HSD 4229, Borang 11AK, 99 years leased until 5 January 2103, 887.41 ha,

Agriculture - Oil Palm

The total area of FGVPM Nitar Timur was reduced from 2,592.61 ha in 2012 to 2,259.51

ha in 2014 (reduced about 333.10 ha). The changes due to re-measurement conducted

by the plantation to get the actual area dated 24 January 2014.

Page 20 of 83

While at FELDA Nitar 2, each smallholder was given two separate grants with attached

terms and conditions, one for oil palm cultivation and the other for housing. There were a

total of 450 smallholder’s grants at FELDA Nitar 2. All 450 settlers at FELDA Nitar 2 have

been given the individual land title. Records sighted showed that the land titles for settlers

at FELDA Nitar 2 were presented to them by the Johor’s Chief Minister on 17th May 2012.

The settlers and FGVPM Nitar Timur plantation management complied with the terms of

the land titles including conditions for agricultural cultivation as stated in Form 5EK of

Kanun Tanah Negara.

2.2.2 There is evidence that

physical markers are located

and visibly maintained along

the legal boundaries

particularly adjacent to state

land, NCR land and reserves.

Minor Compliance

Yes

During site visit at FGVPM Nitar Timur and FELDA Nitar 2, auditor has verified that the

estates have maintained their boundary stones along the perimeter adjacent to Gunung

Arong Tambahan PRF, Mersing PRF and Felcra Melikai.

2.2.3 Where there are or have been

disputes, additional proof of

legal acquisition of title and

evidence that fair

compensation has been

made to previous owners and

occupants shall be available,

and that these have been

accepted with free, prior and

informed consent

(FGVPMIC).

Minor Compliance

Yes

Based on interview with settlers and Head of Orang Asli Kg. Tuba, there was no conflict raised on land disputes in the Nitar CU. Auditor also has checked through minutes meeting of Joint Consultative Committee (JCC) and Jawatan Kuasa Kemajuan Rancangan (JKKR), there was no conflict on land disputes in the Nitar CU minuted in the meeting minutes. Settlers at FELDA Nitar 2 and manager of FGVPM Nitar Timur have maintained boundary stones or marking to avoid any issue raised on land disputes.

2.2.4 There shall be an absence of

significant land conflict,

unless requirements for

acceptable conflict resolution

processes (see Criteria 6.3

and 6.4) are implemented and

Yes

There was no significant land conflict raised in the Nitar CU as explained in indicator 2.2.3.

Page 21 of 83

accepted by the parties

involved.

Major Compliance

2.2.5 For any conflict or dispute

over the land, the extent of the

disputed area shall be

mapped out in a participatory

way with involvement of

affected parties (including

neighbouring communities

and relevant authorities

where applicable).

Minor Compliance

Yes

Since there was no conflict or dispute over land ownership in the Nitar CU, this indicator

was not applicable to them.

2.2.6 To avoid escalation of

conflict, there shall be no

evidence that oil palm

operations have instigated

violence in maintaining peace

and order in their current and

planned operations.

Major Compliance

Yes

Auditor has verified through JCC and JKKR Meetings and interview with settlers and other

oil palm plantation companies that there was no violence action taken by Nitar POM,

FGVPM Nitar Timur and FELDA Nitar 2 to maintaining peace and order in their current

and planned operations. Nitar POM, FGVPM Nitar Timur and FELDA Nitar 2 only

employed watchmen in order to guard their workers, staffs and childrens life, their

belongings and company properties.

C 2.3

Use of the land for

oil palm does not

diminish the

legal,customary or

user rights of other

users

without their

free,prior and

informed consent.

2.3.1 Maps of an appropriate scale

showing the extent of

recognised legal, customary

or user rights (Criteria 2.2, 7.5

and 7.6) shall be developed

through participatory mapping

involving affected parties

(including neighbouring

communities where

applicable, and relevant

authorities).

Major Compliance

Yes

Since there was no conflict or dispute over land ownership in the Nitar CU, this indicator

was not applicable to them.

Page 22 of 83

2.3.2 Copies of negotiated

agreements detailing the

process of free, prior and

informed consent (FGVPMIC)

(Criteria 2.2, 7.5 and 7.6)

shall be available and shall

include:

a) Evidence that a plan has

been developed through

consultation and discussion

with all affected groups in the

communities, and that

information has been

provided to all affected

groups, including information

on the steps that shall be

taken to involve them in

decision making;

b) Evidence that the company

has respected communities’

decisions to give or withhold

their consent to the operation

at the time that this decision

was taken;

c) Evidence that the legal,

economic, environmental and

social implications for

permitting operations on their

land have been understood

and accepted by affected

communities, including the

implications for the legal

status of their land at the

expiry of the company’s title,

concession or lease on the

land.

Yes

Since there was no conflict or dispute over land ownership in the Nitar CU, this indicator

was not applicable to them.

Page 23 of 83

Minor Compliance

2.3.3 All relevant information shall

be available in appropriate

forms and languages,

including assessments of

impacts, proposed benefit

sharing, and legal

arrangements.

Minor Compliance

Yes

Since there was no conflict or dispute over land ownership in the Nitar CU, this indicator

was not applicable to them.

2.3.4 Evidence shall be available to

show that communities are

represented through

institutions or representatives

of their own choosing,

including legal counsel.

Major Compliance

Yes

Since there was no conflict or dispute over land ownership in the Nitar CU, this indicator

was not applicable to them.

Page 24 of 83

Principle 3: COMMITMENT TO LONG-TERM ECONOMIC AND FINANCIAL VIABILITY

Clause Indicators Comply

Yes/No Findings

C 3.1

There is an

implemented

management plan

that aims to

achieve long-term

economic and

financial viability.

3.1.1 A business or management

plan (minimum three years)

shall be documented that

includes, where appropriate,

a business case for scheme

smallholders.

Major Compliance

Yes

Nitar CU continued to be committed to long-term economic and financial viability. Budgets

for financial year 2015 and a projection budgets for 2016 to 2018 were available. The

Administrative and plantation budgets included capital and operating expenditures with

attention given to crop projection, cost of production, cost per tonne and per hectare

indicators to monitor the performance of each operating unit. The cost of production was

reviewed and compared against expenditure each year with projections in place for future

years. The crop projected per ha for years 2016, 2017 & 2018 for FELDA Nitar 2 were 23,

24 and 24 tonnes while in FGVPM Nitar Timur it were 20.41, 20.57, 20.49 tonnes.

3.1.2 An annual replanting

programme projected for a

minimum of five years (but

longer where necessary to

reflect the management of

fragile soils, see Criterion

4.3), with yearly review, shall

be available.

Minor Compliance

Yes

The second generation of Palms in FELDA Nitar 2 was only planted in 2008 and 2009

and would not be required to be replanted at the least till the year 2033. FELDA Global

Ventures Plantations Malaysia Sdn. Bhd headquarters which makes the final decision on

replanting had postponed the 2016 replanting scheduled in FGVPM Nitar Timur. The

replanting had been scheduled as follows:

YEAR Hectare (Ha)

2016 Nil

2017 299.49

2018 414.88

2019 232.57

2020 433.97

2021 494.18

Page 25 of 83

Principle 4: USE OF APPROPRIATE BEST PRACTICES BY GROWERS AND MILLERS

Clause Indicators Comply

Yes/No Findings

C 4.1

Operating

procedures are

appropriately

documented,consis

tently implemented

and monitored

4.1.1 Standard Operating

Procedures (SOPs) for

estates and mills shall be

documented.

Major Compliance

Yes

Both FELDA Nitar 2 and FGVPM Nitar Timur were continued to use documented SOPs

from FELDA Global Ventures. The agriculture manuals were:

i. Manual Ladang Sawit Lestari – Pengurusan Tapak Semaian Sawit ii. Manual Ladang Sawit Lestari – Pembangunan Tanam Semula Sawit iii. Manual Ladang Sawit Lestari – Sawit Pra Matang iv. Manual Ladang Sawit Lestari – Sawit Matang v. Manual Ladang Sawit Lestari – Pembajaan Sawit

The agriculture manuals provided guidance on Pre-Development Survey, Assessment

and planting, oil palm nursery, oil palm replanting practices, land clearing, establishment

and maintenance of legume covers, oil palm planting, upkeep of both mature and

immature areas, FFB harvesting and etc.

In addition manuals used were :

i. Manual Keselamatan, Kesihatan Pekerjaan dan Alam Sekitar ii. Manual Pengurusan Rancangan iii. Prosedur Kerja Selamat.

Agricultural upkeep in both FELDA Nitar 2 and FGVPM Nitar Timur were well implemented

as per the SOPs. The pruning of palms, stacking of cut fronds and recovery of loose fruits,

which had been raised as a non-conformance in the previous audit, had been improved

and managed well.

Nitar – POM

Mill Capacity – 45 mt/ hr

i) OER Target 2015 – 20.50% to date Average – 20.32% ii) KER Target 2015 – 6% to date Average – 5.95%

The POM is certified to

a) ISO 19001 : 2008, ISO 14001 : 2009, ISO 18001 : 2007, certification eff date – 3rd March, 2015 to 2nd March, 2018 by SIRIM QAS

83 SOPs revised effective 23rd Jan, 2015 in place governing Mill Quality System and

Safe operating practices are in place revised effective : 23rd Jan, 2015

Page 26 of 83

Sample the following Procedures / Practices :

i) Reception Station ii) Sterilization Operating Station iii) Kernel Recovery Station iv) Chemical Handling Procedure v) Effluent Treatment Operation vi) First Aid Procedure.

i) Safe operating Method on Pesticide Application has been established in Manual

Keselamatan dan Alam Sekitar – Safety Management & Handling of Dangerous

Chemicals d/d : 1 st July, 2009.

ii) Manual Ladang Sawit Lestari – Sawit Matang – MLSL ( Ed. 2 ) – e/d : 1st June, 2012

iii) Manual Ladang Sawit Lestari – Pembajaan Sawit – MLSL ( Ed. 2 ) – e/d : 1st June, 2012.

4.1.2 A mechanism to check

consistent implementation of

procedures shall be in place.

Minor Compliance

Yes

Some of the records made available and sighted were PA’s reports, Internal Audit reports,

Agronomic Reports and FELDA Agricultural Officer’s report.

i) QOSHE Audit carried out with 11 NCRs raised – cause investigation carried out, corrective action initiated and verified closed.

ii) Joint Consultative Council Meeting – verified minutes of 18th May, 2015 & 28th Jan, 2015

iii) RSPO internal Audit at Nitar Timur estate carried out on En. Azwan Muhammad of PQSM 4th March, 2015

iv) RSPO internal Audit at Nitar 2 estate carried out on En. Azwan Muhammad of PQSM 3rd March, 2015

4.1.3 Records of monitoring and

any actions taken shall be

maintained and available, as

appropriate.

Minor Compliance

No

Both FELDA Nitar 2 & FGVPM Nitar Timur continued to maintain and kept records of monitoring and the actions taken for a minimum of 12 month. Monthly Progress, Monthly Costing and Annual Reports on monitoring of all activities were made available. Other records sighted included Work Program Sheets, Record Kerja Integrasi Sawit for harvesting, weeding, etc, and Surat Pengeluaran Baja/racun, Bin cards, Report Account, rainfall data, etc.

i) RSPO internal Audit at Nitar Timur estate carried out on En. Azwan Muhammad of

PQSM 4th March, 2015

Page 27 of 83

ii) RSPO internal Audit at Nitar 2 estate carried out on En. Azwan Muhammad of PQSM 3rd March, 2015

However, the records of the follow-up action from the mentioned RSPO Internal Audits

are not available. Minor NCR JS – 2015 – 02 – raised.

4.1.4 The mill shall record the

origins of all third-party

sourced Fresh Fruit Bunches

(FFB).

Major Compliance

Yes Nitar POM received its third party crops from various sources mainly surrounding oil palm

plantation company and smallholders. The third parties have consistently contributed

around 50.33% of the mill input. The mill has a mechanism to records the origin and

quantity of all the crop from third parties starting from FFB chits until the production report.

C 4.2

Practices maintain

soil fertility at, or

where possible

improve soil fertility

to, a level that

ensures optimal

and sustained yield.

4.2.1 There shall be evidence that

good agriculture practices, as

contained in Standard

Operating Procedures

(SOPs), are followed to

manage soil fertility to a level

that ensures optimal and

sustained yield, where

possible.

Minor Compliance

Yes

Both FELDA Nitar 2 and FGVPM Nitar Timur continued to practise the maintenance of

long-term soil fertility by annual application of fertilisers based on periodic foliar and soil

anal?.ysis, biomass retention (pruned fronds left to decompose in the fields) and some

EFB application.

Fertiliser application, which was of paramount importance for maintenance of soil fertility,

was carried based on the recommendation made by FASSB agronomist. Annual Fertiliser

recommendations were made based on annual foliar sampling and soil sampling. The

main fertilisers recommended for 2015 were NK and FELDA ll and the rate of fertilisers

per palm recommended varied between 2.25 to 2.75 kg per palm per application. Fertiliser

application program was monitored using records like program sheets, “Surat

pengeluaran baja”, “Buku Kerja”, etc.

Self-managed settlers interviewed demonstrated understanding of the techniques

required to maintain soil fertility and that they are being implemented. They too had

applied fertilisers in their plot.

4.2.2 Records of fertiliser inputs

shall be maintained.

Minor Compliance

Yes

Records of programs and applications of fertilisers were made available to auditors.

Records sighted showed that actual applied in 2014 was in line with program. FELDA

Nitar 2 and FGVPM Nitar Timur had applied 1,629.60 tonnes and 1,348.60 tonnes of

fertilisers in 2014. The 2015 application was on going.

4.2.3 There shall be evidence of

periodic tissue and soil

sampling to monitor changes

in nutrient status.

Yes

From the Agronomist reports it was established that both FELDA Nitar 2 and FGVPM Nitar

Timur have continued to carry out periodic foliar and soil sampling to monitor changes in

nutrient status. Annual foliar sampling for the nutrients N, P, K, Mg, Ca & B had been

carried out and the results formed the basis for the fertiliser recommendations to maintain

Page 28 of 83

Minor Compliance and to improve soil fertility. The latest foliar sampling in FELDA Nitar 2 was carried out in

March 2015 and for FGVPM Nitar Timur it had been scheduled in June 2015. These

formed the basis for formulation of the fertiliser recommendation for 2016. Soil maps were

made available to the auditors. Analysis for soil T-N, Av-P, Ex-K, Ex-Ca and Ex-Mg was

carried along with foliar analysis annually.

4.2.4 A nutrient recycling strategy

shall be in place, and may

include use of Empty Fruit

Bunches (EFB), Palm Oil Mill

Effluent (POME), and palm

residues. Minor Compliance

Yes

Both FELDA Nitar 2 and FGVPM Nitar Timur have continued to apply EFB at a rate of 40

tonnes per ha. In 2014 FELDA Nitar 2 had applied 2,000 tonnes while FGVPM Nitar Timur

had applied 3,717 tonnes. In 2015, 988 tonnes had been applied in FGVPM Nitar Timur

while at FELDA Nitar 2 it had been scheduled to commence in June.

C 4.3

Practices minimize

and control erosion

and degradation of

soils.

4.3.1 Maps of any fragile/marginal

soils shall be available.

Major Compliance

Yes

There were no fragile/marginal soils in both FELDA Nitar 2 & FGVPM Nitar Timur

4.3.2 A management strategy shall

be in place for plantings on

slopes between 9 and 25

degrees unless specified

otherwise by the company’s

SOP. Minor Compliance

Yes

Both FELDA Nitar 2 & FGVPM Nitar Timur continued the strategy of terracing for slopes

between 6 and 25 degrees. This was as per FELDA’s policy “PolisI Perlindungan Tanah

Curam Dan Rezab Sungai” and as per Manual Ladang Sawit Lestari – Pembangunan

Tanam Semula Sawit chapter MLSL (Ed.2) – Sec.2 (11), Item 11.3.1. It was observed that

this policy was adhered to and areas that were undulating and hilly had been terraced. No

bare grounds were sighted in both FELDA Nitar 2 & FGVPM Nitar Timur during the visit.

4.3.3 A road maintenance

programme shall be in place.

Minor Compliance

Yes

During the field visit, it was noted road conditions were satisfactory and accessibility were made possible by regular maintenance guided by its road maintenance programmes. The program for use of back-hoe, rolling, resurfacing and grading had been supported by provisions in the budgets. Surface run off water from roads were well directed into fields and drains with well cambered roads, road sided drains and silt pits. On FELDA Nitar 2 roads works/maintenance were contracted out. In FGVPM Nitar Timur there were a rear mounted multi grader, a back hoe and a tractor drawn roller for such work. The back hoe was hired on contract.

4.3.4 Subsidence of peat soils shall

be minimised and monitored.

A documented water and

ground cover management

Yes

There were no peat soils in both FELDA Nitar 2 and FGVPM Nitar Timur

Page 29 of 83

programme shall be in place.

Major Compliance

4.3.5 Drainability assessments

where necessary will be

conducted prior to replanting

on peat to determine the long-

term viability of the necessary

drainage for oil palm growing.

Minor Compliance

Yes

There were no peat soils in both FELDA Nitar 2 and FGVPM Nitar Timur

4.3.6 A management strategy shall

be in place for other fragile

and problem soils (e.g.

podzols and acid sulphate

soils).

Minor Compliance

Yes

There were no other fragile and problem soils in both FELDA Nitar 2 and FGVPM Nitar

Timur.

C 4.4

Practices maintain

the quality and

availability of

surface and ground

water.

4.4.1 An implemented water

management plan shall be in

place.

Minor Compliance

Yes Both FELDA Nitar 2 and FGVPM Nitar Timur continued have in place the water

management plan ‘Pelan Pengurusan Air”. It covered action to be taken during droughts,

floods and during a fire. There were no rivers in FELDA Nitar 2 & FGVPM Nitar Timur.

4.4.2 Protection of water courses

and wetlands, including

maintaining and restoring

appropriate riparian and other

buffer zones (refer to national

best practice and national

guidelines) shall be

demonstrated

Major Compliance

Yes

During site visit and verification through topography map, there was no river flow in the

FELDA itar 2 and FGVPM Nitar Timur. So this indicator was not applicable to both estates.

4.4.3 Appropriate treatment of mill

effluent to required levels and

regular monitoring of

discharge quality, shall be in

compliance with national

regulations (Criteria 2.1 and

5.6).

Minor Compliance

Yes

Mill records of water monitoring for DOE submission in the ‘Borang Penyata Suku

Tahunan’. 1st quarter report until 3rd quarter reports were available for viewing. Nitar mill

DOE licence is for land application and the requirement is for the BOD to be less than

5000 mg/l. The latest quarter report from was sampled and reviewed.

Outgoing water into natural waterways is being closely monitored. Water sampling

analysis on quarterly basis as stipulated in the procedure. Parameters tested in the

analysis are as follows : pH, BOD,COD, Suspended Solids(SS), Ammonical Nitrogen

Page 30 of 83

(AN), Total Nitrogen and Oil & Grease. The BOD results was below than the stipulated

limit of 5000 mg/l.

4.4.4 Mill water use per tonne of

Fresh Fruit Bunches (FFB)

(see Criterion 5.6) shall be

monitored.

Minor Compliance

Yes

Monitoring of Water usage in mills being monitored. A general stable trend noted. The following sampled :

Month 2014 Jan 2015 Feb 2015 March 2015 April 2015

Consumption Water (Lit) / FFB Processed

1.07 1.18 1.04 1.03 0.92

C 4.5

Pests,

diseases,weeds

and invasive

introduced species

are effectively

managed using

appropriate

Integrated Pest

Management

techniques.

4.5.1 Implementation of Integrated

Pest Management (IPM)

plans shall be monitored.

Major Compliance

Yes

Both FELDA Nitar 2 and FGVPM Nitar Timur have carried out monthly detection and

observation of leaf eating pests, rat damage and diseases like Ganoderma. These

detection and observations were carried by staff. When damaged was observed, proper

census were then carried out.

Records showed that 10,000 and 1240 points of beneficial plants were planted in FELDA

Nitar 2 and FGVPM Nitar Timur in 2014. Large numbers of beneficial plants in the fields

and a well-established nursery of was sighted at FELDA Nitar 2. As indicated in record no

bagworm attack was sighted and the NCR STK 02 issued during the last audit remains

closed.

Barn owl boxes, 15 in FELDA Nitar 2 and 58 in FGVPM Nitar Timur had been established

and census records were sighted. The latest census showed that occupancy of the boxes

was almost a 100% in both FELDA Nitar 2 and FGVPM Nitar Timur.

4.5.2 Training of those involved in

IPM implementation shall be

demonstrated.

Minor Compliance

No

Training records for those involved in IPM implementation was not available in both

FELDA Nitar 2 and FGVPM Nitar Timur and as such the Minor NCR STK 01 2015 was

issued.

C 4.6

Pesticides are used

in ways that do not

endanger health or

the environment

4.6.1 Justification of all pesticides

used shall be demonstrated.

The use of selective products

that are specific to the target

pest, weed or disease and

which have minimal effect on

Yes

Justification of all pesticides used had been demonstrated. The use of selective products

that are specific to the target weed had been demonstrated in:

i. Doc. No. MLSL (Ed.2)-Sec 3 (5.0) in Manual Ladang Sawit Lestari –Sawit Pra Matang

ii. Doc. No. MLSL (Ed.2)-Sec 4 (2.0) Manual Ladang Sawit Lestari –Sawit Matang

Page 31 of 83

non-target species shall be

used where available.

Major Compliance

iii. Doc. No. MLSL (Ed.2)-Sec 2 (5.0) Manual Ladang Sawit Lestari –Pembangunan Taman Semula Sawit.

4.6.2 Records of pesticides use

(including active ingredients

used and their LD50, area

treated, amount of active

ingredients applied per ha

and number of applications)

shall be provided.

Major Compliance

Yes

Both FELDA Nitar 2 and FGVPM Nitar Timur had record to show where pesticides had

been used, the total quantity, and Ai/Ha. Pesticides are used only when justified and areas

used are recorded in Surat Pengeluaran Baja/racun, bin cards, program sheets and

progress reports.

4.6.3 Any use of pesticides shall be

minimised as part of a plan,

and in accordance with

Integrated Pest Management

(IPM) plans. There shall be no

prophylactic use of

pesticides, except in specific

situations identified in

industry’s Best Practice.

Major Compliance

Yes

There was no evidence to show that both FELDA Nitar 2 and FGVPM Nitar Timur had

carried any prophylactic spraying. Both units have now introduced strip spraying, instead

of circle and path, where possible thus reducing chemical used for spraying. In order to

reduce the use of rat baits to control rats, barn owls were encouraged. Barn owl boxes

had been sighted in the fields. FELDA Nitar 2 was also aggressively planting beneficial

palm as part of IPM.

4.6.4 Pesticides that are

categorised as World Health

Organisation Class 1A or 1B,

or that are listed by the

Stockholm or Rotterdam

Conventions, and paraquat,

are not used, except in

specific situations identified in

industry’s Best Practice. The

use of such pesticides shall

be minimised and/or

eliminated as part of a plan,

and shall only be used in

exceptional circumstances.

No

Chemical register reviewed in Nitar Timur and Nitar 2 estate, Pesticides 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 categorized as World Health Organization Type

1A or 1B, or are listed by the Stockholm or Rotterdam Conventions, growers are actively

seeking to identify alternatives, and this is documented.of class III and IV.

Pesticides used

No Name Class

1 Juru IV

2 Ecomax III

3 Garlon 250 III

4 Paraquat Ib

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Pesticides selected for use

are those officially registered

under the Pesticides Act 1974

(Act 149) and the relevant

provision (Section 53A); and

in accordance with USECHH

Regulations (2000).

Minor Compliance

The use of Paraquat a (class 1b chemical) noted, how this were in exceptional cases as

identified in industry’s best practices. Effort noted by the CU to reduce the use of Paraquat.

Policy to reduce the use of Paraquat endorsed by the CU’s President d/d : 1st June, 2014

noted

In FGVPM Nitar Timur the usage of paraquat had not been minimised. Records indicate

that 1530, 2320, 1640, 2575, 980 liters of paraquat had been used in 2011, 2012, 2013,

2014 and 2015 (until April) respectively. This issued had been raised as a Minor NCR in

2012 and as such the NCR was upgraded to Major NCR STK 02 2015.

4.6.5 Pesticides shall only be

handled, used or applied by

persons who have completed

the necessary training and

shall always be applied in

accordance with the product

label. Appropriate safety and

application equipment shall

be provided and used. All

precautions attached to the

products shall be properly

observed, applied, and

understood by workers (see

Criterion 4.7).

Major Compliance

Yes

Pesticides handlers, mixers and sprayers were adequately trained on the handling of the

pesticides (chemicals). Appropriate safety and application equipment is being provided

and used. Precautions attached to the pesticides are being explained to the workers.

Pesticide handling workers are trained based on the CU’s

Chemical Handling Procedure , Safe Pesticide spraying procedure and PPE handling

procedure.

4.6.6 Storage of all pesticides shall

be according to recognised

best practices. All pesticide

containers shall be properly

disposed of and not used for

other purposes (see Criterion

5.3). Pesticides shall be

stored in accordance to the

Occupational Safety and

Health Act 1994 (Act 514) and

Regulations and Orders,

Yes All pesticides were stored in accordance with the legal requirement as well as recommendation by manufacturer as per applicable MSDS. The stores are equipped with showers, wash area and a PPE storage area.

Adequate ‘Safety Signage’ have been placed in the store.

Triple rinsing activities was continually implemented for Empty Pesticide container. Triple rinsed container has to be pierced and stored prior disposing.

All information regarding the chemicals and its usage, hazards, trade and generic names were available in both English & in most cases, Bahasa Malaysia and understood by workers. The MSDS / SDMS for concerned pesticides used including were available in both English and in most cases, Bahasa Malaysia.

Page 33 of 83

Pesticides Act 1974 (Act 149)

and Regulations.

Major Compliance

Relevant information of the agrochemical used by estate workers, largely via morning

muster and the use of Safety Pictorial poster, were conveyed and understood by all

interviewed during the spraying activities and fertilizer application. It was also verified in

the training records that training in chemical handling especially to the sprayers, had been

conducted with the aim of disseminating the correct information and ensuring

understanding regarding the usage and hazards of the agrochemicals.

4.6.7 Application of pesticides shall

be by proven methods that

minimise risk and impacts.

Minor Compliance

Yes

Handling Agriculture Chemical – Standard and Safe Operating procedure. – described.

SOP for safe agrochemicals usage have been established, the safety aspects and the

precaution that needs to be practiced are incorporated in the respective SOPs, Safe

operating Method on Pesticide Application has been established in Manual Keselamatan

dan Alam Sekitar – Safety Management & Handling of Dangerous Chemicals d/d : 1st

July, 2009.

4.6.8 Pesticides shall be applied

aerially only where there is

documented justification.

Communities shall be

informed of impending aerial

pesticide applications with all

relevant information within

reasonable time prior to

application.

Major Compliance

Yes

Nitar Timur and Nitar 2 – There was no aerial pesticide application carried out

4.6.9 Evidence of continual training

to enhance knowledge and

skills of employees and

associated smallholders on

pesticide handling shall be

demonstrated or made

available. (see Criterion 4.8).

Minor Compliance

Yes a) Chemical hazards communication had been given through awareness and training

program to all workers involved in handling of dangerous chemicals. The objective was to ensure all workers involved have been adequately trained in understanding MSDS, safe working practices and the correct use of PPE. Those trained included sprayers, manure spreaders, laboratory personnel, boiler-man and store clerk. Field inspection and observation of spraying tasks confirmed chemicals being applied were in accordance with the product safety precautions. MSDS were made available at point of use – for example, at mill’s water each estate treatment plant, boiler chemical dosing area and chemical mixing area and at the chemical store.

b) Suitable PPE has been given to the workers appropriate for their daily routine task.

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The PPE includes safety boots, safety harness, helmets, goggles, ear plugs, rubber and cotton gloves, aprons and breathing masks (dusk mask and cartridge type respirator). Records of PPE issuance were maintained and were presented to assessor during the assessment. During the site tour, it was observed that signage (to remind workers to wear appropriate PPE) was posted at the appropriate places. Workers interviewed understood the reasons and importance why they were required to wear the PPE.

4.6.10 Proper disposal of waste

material, according to

procedures that are fully

understood by workers and

managers shall be

demonstrated (see Criterion

5.3).

Minor Compliance

Yes

Disposal of waste material related to Pesticide containers are being carried out as per

established procedures. Triple rinsing activities was continually implemented for Empty

Pesticide container. Triple rinsed container has to be pierced and stored prior disposing.

4.6.11 Specific annual medical

surveillance for pesticide

operators, and documented

action to treat related health

conditions, shall be

demonstrated.

Major Compliance

No Annual medical surveillance was carried out for workers for the Nitar POM by Poliklinik

Intan Dr. Zainudin Muid ( JKKP HQ/08/POC/00/468 ) .

At Nitar 2 Estate - The pesticide handling operators of the following contractors, who are carrying out pesticide spraying activities are not being subjected to medical surveillance. Major NCR – JS – 2015 -03, raised. i) Syarikat Azmi Usaha Jaya & Syatrikat Perniagaan Nur Utama Koperasi Peneroka – Peneroka Felda Nitar Satu berhad

4.6.12 No work with pesticides shall

be undertaken by pregnant

or breast-feeding women

Major Compliance

Yes There was no evidence of pregnant women sprayers being used in the CU.

C 4.7

An occupational

health and safety

plan is

documented,

effectively

communicated and

implemented.

4.7.1 An occupational health and

safety policy shall be in

place. An occupational health

and safety plan covering all

activities shall be

documented and

implemented, and its

effectiveness monitored.

Major Compliance

Yes Occupational health and safety Policy has been established endorsed by Dato Ir Jamlus

Hj. Aziz – rev 8 e/d : 1st Dec, 2014. The policy has been communicated to all levels of the

organization through briefings and also being displayed prominently in Bahasa Malaysia

and English on notice boards at mill and estate office and Muster Ground. Random

interviewed with employees showed that they generally understood the basic

requirements of the policy.

Occupational health and safety (OHS) management plan e/d : 1st Jan, 2015 for each operating unit had been established. The OHS management plan sighted addressed

Page 35 of 83

The occupational

health and safety

plan shall cover the

following:

issues related to hazards and risks, legal register and its requirements for compliance, OSH awareness and training program, accident and emergency procedures, treatment of illness/injury during the job, use of PPE, OSH Committee meetings, etc. Generally, the OSH plans were acceptable.

The OHS has been established with the following Indicators :

i) Achieving ‘0’ Accident

ii) No notices and fines from DOSH.

4.7.2 All operations where health

and safety is an issue shall be

risk assessed, and

procedures and actions shall

be documented and

implemented to address the

identified issues. All

precautions attached to

products shall be properly

observed and applied to the

workers.

Major Compliance

No

Risk Assessment has been carried out via ‘Hazard identification, Risk Assessment and

Risk Control’ matrix. The HIRARC has been revised on the 15th Dec, 2014. No significant

changes or additional risks noted. However, the following discrepancy noted.

At Nitar Timur Water treatment plant ( used for drinking ). The water treatment has not been risk assessed to determine the potential associated risks. No clear operating procedures, for the treatment plant has been established. Major NCR – JS – 2015 -04, raised.

4.7.3 All workers involved in the

operation shall be adequately

trained in safe working

practices (see Criterion 4.8).

Adequate and appropriate

protective equipment shall be

available to all workers at the

place of work to cover all

potentially hazardous

operations,such as pesticide

application, machine

operations, and land

preparation, harvesting and, if

it is used, burning.

Major Compliance

Yes c) Chemical hazards communication had been given through awareness and training

program to all workers involved in handling of dangerous chemicals. The objective was to ensure all workers involved have been adequately trained in understanding MSDS, safe working practices and the correct use of PPE. Those trained included sprayers, manure spreaders, laboratory personnel, boiler-man and store clerk. Field inspection and observation of spraying tasks confirmed chemicals being applied were in accordance with the product safety precautions. MSDS were made available at point of use – for example, at mill’s water each estate treatment plant, boiler chemical dosing area and chemical mixing area and at the chemical store.

d) Suitable PPE has been given to the workers appropriate for their daily routine task. The PPE includes safety boots, safety harness, helmets, goggles, ear plugs, rubber and cotton gloves, aprons and breathing masks (dusk mask and cartridge type respirator). Records of PPE issuance were maintained and were presented to assessor during the assessment. During the site tour, it was observed that signage (to remind workers to wear appropriate PPE) was posted at the appropriate places.

Page 36 of 83

Workers interviewed understood the reasons and importance why they were required to wear the PPE.

4.7.4 The responsible

person/persons shall be

identified. There shall be

records of regular meetings

between the responsible

person/s and workers.

Concerns of all parties about

health, safety and welfare

shall be discussed at these

meetings, and any issues

raised shall be recorded.

Major Compliance

Yes

Safety & Health Committee has been established, verified the QOHSE safety committee

org chart for 2015. Periodic Meeting related to Health and Safety are being carried out,

relevant records related to Health and Safety are being maintained.

The following Safety & Health Meeting minutes reviewed :

Meeting Index Date Status

01/2015 11th Feb, 2015 Satisfactory

06/2014 30th Dec, 2014 Satisfactory

05/2014 21st Oct, 2014 Satisfactory

4/2014 28th Oct, 2014 Satisfactory

3/2014 23rd June, 2014 Satisfactory

4.7.5 Accident and emergency

procedures shall exist and

instructions shall be clearly

understood by all workers.

Accident procedures shall be

available in the appropriate

language of the workforce.

Assigned operatives trained

in First Aid should be present

in both field and other

operations, and first aid

equipment shall be available

at worksites. Records of all

accidents shall be kept and

periodically reviewed.

Minor Compliance

No

Accident and Emergency procedures have been established and assigned operatives in

First Aid have been trained. The following training verified and the respective training

records verified. First Aid Training & CPR conducted by Management in FGVM Wilayah

Mersing on 22nd & 23rd April, 2015

No. Participant Station

1 Zainal bin Warnoh Chargeman Letrik Junior

2 Nordin bin Ithnni Kerani Pv40

3 Othman bin Yacob Pem. Juruanalisa makmal

4 Hamid bin Ibrahim Fitter Letrik

However the following discrepancy noted

At the Nitar POM the Emergency handling procedures and Emergency response plan related to the operation of the Biogas plant is yet to be established. Minor NCR – JS – 2015 -05, raised. At the Nitar 2 Estate - Unable to sight evidence of Trained First Aiders in the field operation. Minor NCR – JS – 2015 -06, raised. Accident statistics are maintained in the CU – Accidents are recorded, cause investigation carried out and corresponding mitigation action taken. The use of JKKP 6,

Page 37 of 83

7 & 9 Forms are used in a satisfactory manner. Submission of JKKP 8 form is carried out in a timely manner.

4.7.6 All workers shall be provided

with medical care, and

covered by accident

insurance.

Minor Compliance

Yes

SU has continued to provide a group insurance for all workers as required under the

Workmen Compensation Act 1992. Sighting of records and cross check with workers

showed that they were covered with valid insurance policy. Local Workers – covered by

SOCSO. Verified through ‘Jadual Caruman Bulanan’ Oct, Nov & Dec 2014 for Mill

Workers. Foreign Workers – covered by Workmen Compensation provided as per

Compensation Act 1952.

4.7.7 Occupational injuries shall be

recorded using Lost Time

Accident (LTA) metrics.

Minor Compliance

No

Monitoring and Maintaining Occupational injuries using Lost Time Accident (LTA) metrics

is still at the infant ( beginning )stage. At the Nitar POM & Nitar Timur Estate – the method

of using Lost Time Accident Metrics for recording Occupational Injuries has not been

implemented. Minor NCR – JS – 2015 -07, raised.

C 4.8

All staff, workers,

smallholders and

contract workers

are appropriately

trained.

4.8.1 A formal training programme

shall be in place that covers

all aspects of the RSPO

Principles and Criteria, and

that includes regular

assessments of training

needs and documentation of

the programme.

Major Compliance

Yes

Nitar POM, FGVPM Nitar Timur and FELDA Nitar 2 had conducted awareness training on

RSPO for stakeholders (such as contractors Antero and YPJ Plantations), their

executives, staff and all workers dated 3 March 2015. Issues relevant to RSPO criteria

was communicated to workers in both FELDA Nitar 2 and FGVPM Nitar Timur at roll calls

and through trainings.

A training need identification matrix has been established with target dates for the training

identified. The training program includes:

Foreign Workers Induction Training

Chemical Awareness

Environmental aspect impact

RSPO supply chain certification standard

Refresher Workshop

Chemical & Spraying Safety Training

Emergency Respond Plan Training

First Aid Training

Chemical Handling Training

Scheduled waste management

Harvesting Safety

HIRARD

Training has been conducted, the following sampled for review :

Page 38 of 83

Date Training Title Trainer(s) Participants

22 & 23 April,

2015

First Aid Training &

CPR

Management (

conducted in FGVM

Wilayah Mersing )

Selected Mill

Workers

24th May,

2015

QOSHE Safety

Training Management

QOHSE

members

12th March,

2015

Safe handling of

Chemicals Lab Supervisor

Lab

Operators

14th March,

2015

Explanation on

Safety Manual Management

Estate

Workers

14th march,

2015

Workers – Health &

Safety Management

Nitar Timur

Estate

Workers

Training ‘ Evaluation Monitoring’ records used to gauge the ‘Training. Post Mortem record

used to monitor the Fire Drill.

Based on interviews held with staff and workers at Nitar SU, it was evident that their

understanding and appreciation of Safety, Health & Environmental management of

identified areas were generally found insufficient, however it can be further enhanced

4.8.2 Records of training for each

employee shall be

maintained.

Minor Compliance

No Auditor had verified training record and attendance list for RSPO awareness training

where all staffs had attended the training. Training records with attendance lists were

made available to the auditors.

However the following discrepancy noted :

At Nitar 2 unable to sight records for the following Trainings carried out : i) Safe method of Handling Pesticides – Provided by supplier ‘Round- Up’ – 13th

March, 2015 ii) Fire hazard – Emergency handling – Provided by Felda Manager – February, 2015 . Minor NCR – JS – 2015 -08, raised.

Page 39 of 83

Principle 5: ENVIRONMENTAL RESPONSIBILITY AND CONSERVATION OF NATURAL RESOURCES AND BIODIVERSITY

Clause Indicators Comply

Yes/No Findings

C 5.1

Aspects of

plantation and mill

management,

including replanting,

that have

environmental

impacts are

identified, and plans

to mitigate the

negative impacts

and promote the

positive ones are

made, implemented

and monitored, to

demonstrate

continual

improvement.

5.1.1 An environmental impact

assessment (EIA) shall be

documented.

Major Compliance

Yes

CU has established its environmental aspects/impacts register associated with their

activities. Environmental aspect and impact (EAI) which covers form upstream activities

such as FFB reception until downstream processes was sighted during assessment.

Identification and evaluation of environmental impact was done for all activities and

processes related to the mill operation. Among the most significant environmental

receptors are the boiler stack emission which associated with air emission, palm oil mill

effluent (POME) discharge (water) and land contamination which related to managing the

schedule waste and also general waste. For the estate operation, all activities from

harvesting, pest and disease, upkeep programme until delivery to mill has been identified.

As for the Nitar POM, the last review was on 1st Feb, 2015.

5.1.2 Where the identification of

impacts requires changes in

current practices, in order to

mitigate negative effects, a

timetable for change shall be

developed and implemented

within a comprehensive

action plan. The action plan

shall identify the responsible

person/persons.

Minor Compliance

Yes Significant environmental aspect and impact was derived from the environmental impact evaluation (EIE) and captured in the ‘Pollution Identification Environmental improvement action Plan’. Those activities evaluated as significant were then monitored using the mitigation measure established for each significant activities. Sighted waste water management plan and waste management plan developed for CU. The management is periodically reviewed to assess the implementation and

effectiveness of the established program. For example the waste water management

program for Nitar Mill as been updated accordingly.

5.1.3 This plan shall incorporate a

monitoring protocol, adaptive

to operational changes, which

shall be implemented to

monitor the effectiveness of

the mitigation measures. The

plan shall be reviewed as a

minimum every two years to

reflect the results of

monitoring and where there

Yes

Pollution Identification Environmental improvement action plan’ to monitor the

effectiveness of the mitigation measures taken, are in place.

The following indexes are being monitored :

i) BOD final Discharge ≤ 100 ppm ii) Reduce Water Consumption ≤ 1.00 MT of water / MT of BTS processed. iii) Reduce Electricity consumption ≤ 20 Kwh / MT of BTS processed.

Y2014 Performance verified – 100% achieved.

Page 40 of 83

are operational changes that

may have positive and

negative environmental

impacts.

Minor Compliance

C 5.2

The status of rare,

threatened or

endangered

species other 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

operations

managed to best

ensure that they are

maintained and/or

enhanced.

5.2.1 Information shall be collated

in a High Conservation Value

(HCV) assessment that

includes both the planted

area itself and relevant wider

landscape-level

considerations (such as

wildlife corridors).

Major Compliance

Yes

The Sustainability Department, FGVPM had compiled information into a report titled “HCV

Assessment & Management Plan of FELDA Nitar Complex Certification Unit, FELDA

Wilayah Segamat” dated 26th September 2012, about the status of High Conservation

Value (HCV) for forest area that adjacent to the FGVPM-NCU land schemes. The forest

area were Gunung Arong Tamabahan and Mersing Forest Reserve. Both forests were

located outside of plantations area. Although the forest reserve located outside of

plantations area, Nitar CU still conducting HCV assessment in order to know any presence

of wildlife species inside or outside the CU. For HCV area within the CU, there were HCV1

(1.36 ha) and HCV4 (0.2 ha) for FGVPM Nitar Timur, HCV1 (6.7 ha) for FELDA Nitar 1,

and for FELDA Nitar 2, there were HCV1 (3.0 ha), HCV2 (0.8 ha), HCV4 (1.5 ha) and

HCV6 (0.6 ha). Total HCV area for Nitar CU was 14.16 ha.

There was evident of stakeholders’ communications in preparing the HCV Assessment

Report. Notification on the presence of the ERTs with Forestry Department (including 3

district forest office; Johor Timur at Mersing, Johor Tengah at Kluang and Johor Selatan

at Johor Bharu) and Wildlife Department was conducted on 3rd October 2012 and 20th

September 2012 respectively.

The results of the HCV assessment showed that there were evidence of freely roaming

ERTs between plantations, near border of the Forest Reserves, for example, pangolin

(Manis javanica), elephant (Elephas maximus) and malayan tiger (Panthera tigris).

Pangolin, elephant and malayan tiger were listed as totally protected in Wildlife

Conservation Act 2010 and listed as endangered species under IUCN Red List.

Also, there were more regular (almost monthly) communication with Wildlife department

during monitoring on wildlife activities, the latest being 10th December 2012 informing the

encroachment of elephant along the forest border.

5.2.2 Where rare, threatened or

endangered (RTE) species,

or HCVs, are present or are

No

FGVPM Nitar Timur had identified and maintained the presence of significant HCV which

is Gunung Arong Tambahan Forest Reserve and Mersing Forest Reserve that are

Page 41 of 83

affected by plantation or mill

operations, appropriate

measures that are expected

to maintain and/or enhance

them shall be implemented

through an action plan.

Major Compliance

adjacent to FGVPM Nitar Timur. While FELDA Nitar 2 had identified Mersing Forest

Reserve as their HCV.

From the assessment findings including consultations with related stakeholders a

Management Plan and Action Plan had been developed. The action plan, represented in

tabular format, contained general descriptions of HCV, action steps and monitoring

activities done on quarterly basis. FELDA Nitar CU Complex’s also showed their

commitment to the conservation of the wildlife habitat by erect signages prohibiting illegal

hunting of wildlife within the plantations.

However FGVPM Nitar Timur did not addressed elephant and HCV area (Gunung Arong

Tambahan Forest Reserve and Mersing Forest Reserve) in their action plan. While,

FELDA Nitar 2 also did not addressed elephant and HCV area; Mersing Forest Reserve.

Thus a Major NCR MRS 02 2015 was raised by auditor.

5.2.3 There shall be a programme

to regularly educate the

workforce about the status of

these RTE species, and

appropriate disciplinary

measures shall be instituted

in accordance with company

rules and national law if any

individual working for the

company is found to capture,

harm, collect or kill these

species.

Minor Compliance

No

In term of training programme on RTE, FELDA Nitar 2 has planned training on RTE for

2015. However, there was no evidence to show FGVPM Nitar Timur has a programme for

RTE training. For disciplinary measures, both estates did not have any method for any

individual working with FELDA or settlers if found to capture, harm, collect or kill the RTE

species. Thus a Minor NCR MRS 03 2015 was raised by auditor.

5.2.4 Where an action plan has

been created there shall be

ongoing monitoring:

The status of HCV and

RTE species that are

affected by plantation or

mill operations shall be

No

Auditor did not found any evidence of monitoring on status of HCV areas (Mersing and

Gunung Arong Tambahan Forest Reserves) and RTE species (elephant) at FGVPM Nitar

Timur. While, FELDA Nitar 2 has established HCV monitoring for RTE species (elephant).

However the monitoring plan did not included HCV area; Mersing Forest Reserve. Thus

a Minor NCR MRS 04 2015 was raised by auditor.

Page 42 of 83

documented and

reported;

Outcomes of monitoring

shall be fed back into the

action plan.

Minor Compliance

5.2.5 Where HCV set-asides with

existing rights of local

communities have been

identified, there shall be

evidence of a negotiated

agreement that optimally

safeguards both the HCVs

and these rights.

Minor Compliance

Yes

HCV area, Gunung Arong Tambahan Forest Reserve and Mersing Forest Reserve, are

located outside of FGVPM Nitar Timur. There was no conflict between Orang Asli Sg Tuba

and FGVPM Nitar Timur where the forest reserve was not within FGVPM Nitar Timur area.

The forest was under management of Johor Forestry Department and Wildlife Department

(PERHILITAN).

C 5.3

Waste is

reduced,recycled,

re-used and

disposed of in an

environmentally

and socially

responsible

manner.

5.3.1 All waste products and

sources of pollution shall be

identified and documented.

Major Compliance

Yes CU has documented identification of all waste product and sources of pollution. The environmental management plan were then established to mitigate applicable identified waste product and source of pollution.

The most significant environmental receptors for the estates and mill operations were:

Air – Source from boiler stack (smoke and particulate), vehicle & generator (smoke and gases), anaerobic processes (ETP, EFB dumping – biogas emission) ,

Water – Cleaning water/run-off/process station waters (hydrocyclone/claybath/sterilizer condensate/clarification waste) & boiler quenching water and blowdown.

Land – Scheduled waste, domestic waste and industrial/process waste.

5.3.2 All chemicals and their

containers shall be disposed

of responsibly.

Major Compliance

No

Disposal of Chemical containers can be further improved as stated below ( pls refer to

Minor NCR – JS – 2015 -09, raised )

5.3.3 A waste management and

disposal plan to avoid or

reduce pollution shall be

documented and

implemented

Minor Compliance

No For the identified waste and pollutants, there were SOP and guideline established as to guide the waste disposal activities and to reduce pollution on the routine operation. Domestic waste was totally removed to landfills managed by the estates.. Industrial @

mill process wastes had been disposed as follows; EFB were sent for mulching in the

field, while crop residue/biomass i.e. fibre and shell were used as fuel in the boiler.

Page 43 of 83

On the monitoring of water and effluent discharge, monthly and quarterly report for final

discharge were submitted in timely manner as stipulated in the written approval. Effluent

quality monitoring was also done on the monthly basis. Sample taken at final discharge

point was sent for analysis.

Result of analysis was found satisfactorily and below the stipulated limit.

On the scheduled waste management, the established SOP - Handling of Scheduled Waste. Schedule Waste were disposed through licensed Schedule Waste disposers. The storage, management and disposal of the following Schedule waste were reviewed, noted to be satisfactory

SW 305 – Spent Lubricant Oil

SW 306 – Spent Hydraulic Oil

SW 410 – Mixed Schedule waste.

A documented Waste management and disposal plan is in place to identify and reduce pollution has been established. However the following discrepancy noted. At the Nitar Timur Estate Workshop Store – Noted old tyres and containers containing unidentified contents. The disposal plans for these items have not been established. Minor NCR – JS – 2015 -09, raised.

C 5.4

Efficiency of fossil

fuel use and the

use of renewable

energy is

optimised.

5.4.1 A plan for improving

efficiency of the use of fossil

fuels and to optimise

renewable energy shall be in

place and monitored.

Minor Compliance

Yes The Diesel usage is being monitored. A Biogas plant has been constructed in Nitar POM

and is currently in the commission stage. Methane captured in the Biogas plant shall be

used to run electrical generator which will significantly reduce the use of Fossil fuel.

C 5.5

Use of fire for

preparing land or

replanting is

avoided,except in

specific situations

as identified in the

ASEAN guidelines

or other regional

best practice

5.5.1 There shall be no land

preparation by burning, other

than in specific situations as

identified in the ‘Guidelines

for the Implementation of the

ASEAN Policy on Zero

Burning’ 2003.

Major Compliance

Yes

The CU adhered to FGVs policy “Polisi Larangan Pembakaran Terbuka” which advocated

zero open burning and the policy of palm are felled, chipped, windrowed and left to

decompose as in the Manual Ladang Sawit Lestari – Pembangunan Tanam Semula

Sawit.

There was no evidence of open burning in all the replants visited on CU. No fire was used

for waste disposal . All domestic waste are being removed landfills located in the Estates

which is managed accordingly the signage at the landfill can be further improved by

including landfill starting date and completed date.

Page 44 of 83

5.5.2 Where fire has been used for

preparing land for replanting,

there shall be evidence of

prior approval of the

controlled burning as

specified in ‘Guidelines for

the Implementation of the

ASEAN Policy on Zero

Burning’ 2003.

Minor Compliance

Yes

The was no evidence that fire had been used to prepare land for replanting in both FELDA

Nitar 2 and FGVPM Nitar Timur. There was no evidence of open burning in all the replants

visited on CU. No fire was used for waste disposal

C 5.6

Preamble

Growers and

millers commit to

reporting on

operational

greenhouse gas

emissions.

However, it is

recognised that

these significant

emissions cannot

be monitored

completely or

measured

accurately with

current knowledge

and methodology. It

is also recognized

that it is not always

feasible or practical

to reduce or

minimise these

emissions.

5.6.1 An assessment of all

polluting activities shall be

conducted, including

gaseous

emissions, particulate/soot

emissions and effluent (see

Criterion 4.4).

Yes

‘Pollution Identification Environmental improvement action plan’ – is used to identify the

waste products and sources of pollution – is in place and is being reviewed accordingly

Page 45 of 83

Growers and

millers commit to

an implementation

period until the end

of December 2016

for promoting best

practices in

reporting to the

RSPO, and

thereafter to public

reporting.Growers

and millers make

this commitment

with the support of

all other

stakeholder groups

of the RSPO.

Plans to reduce

pollution and

emissions,

including

greenhouse

gases,are

developed,

implemented and

monitored.

5.6.2 Significant pollutants and

greenhouse gas (GHG)

emissions shall be identified,

and plans to reduce or

minimise them implemented.

Major Compliance

Yes

‘Pollution Identification Environmental improvement action plan’ – is used to identify the

waste products and sources of pollution – is in place and is being reviewed accordingly

Green House Gaseous – Potential sources are in the identification stage.

5.6.3 A monitoring system shall be

in place, with regular

reporting on progress for

these significant pollutants

No

Pollution Identification Environmental improvement action plan – although in place to

identify the waste products and sources of pollution, the following discrepancy was

noted :

Page 46 of 83

and emissions from estate

and mill operations, using

appropriate tools.

Minor Compliance

At the Nitar POM - Unable to sight and verify a monitoring mechanism for the identified significant pollutants and greenhouse gases, with regular reporting on progress for these significant pollutants and emissions from estate and mill operations, using appropriate tools. Minor NCR – JS – 2015 -09, raised.

Principle 6: RESPONSIBLE CONSIDERATION OF EMPLOYEES AND OF INDIVIDUALS AND COMMUNITIES BY GROWERS AND MILLERS

Clause Indicators Comply

Yes/No Findings

C 6.1

Aspects of

plantation and mill

management that

have social

impacts, including

replanting, 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

continual

improvement.

6.1.1 A social impact assessment

(SIA) including records of

meetings shall be

documented.

Major Compliance

No

The Social Impact Assessment (SIA) report titled ‘Laporan Penilaian Impak Sosial

Kompleks Nitar’ was conducted based on a questionnaire formulated by FELDA HQ. They

covered impacts of plantation and oil mill activities on internal (scheme participants,

workers/employees) and external (neighbouring) community infrastructures, livelihood,

cultural/religious values and other community values.

A briefing for and discussion with stakeholders was held on 14th September 2012 at Hotel

Seri Malaysia, Mersing as evidenced by the signed list of attendance. Only 8 stakeholders

turned up. From the above records, it was evident that the company had committed to be

transparent in its dealings with internal and external stakeholders.

In addition to the above, it was also seen there were regular communications (almost

monthly) with Wildlife Department Johor, the latest being on 10th December 2012 as

sighted in “Buku Rekod Serangan Gajah (PM98B)” and with the Johor State Forest

Department by FGVPM Nitar Timur on 6th November 2012.

There was also evidence that Scheme Managers had assisted in ensuring compliance to

RSPO P&C by providing adequate information to their scheme smallholders (settlers).

The participants were given copies of contract between FELDA and them, up-to-date

records of debts and repayments, charges and fees. Others include demonstration

training on the safe use of agro-chemical, information on integrated pest management,

health and safety plans, social and environmental impact / aspect assessments and plans,

pollution prevention programs, procedure for complaints and grievances and procedure

for calculating FFB prices, and for FFB grading.

Page 47 of 83

During this 3rd Surveillance Audit, the SIA report was only available at Nitar POM. The

report was not evident at FGVPM Nitar Timur and FELDA Nitar 2. Thus a Major NCR

MRS 05 2015 was raised by auditor.

6.1.2 There shall be evidence that

the assessment has been

done with the participation of

affected parties.

Major Compliance

No

During the assessment, it was observed that FGVPM-NCU had compiled a list of 32 local

stakeholders that may be relevant to its operation. The letters to stakeholders and the

records of request were examined in the scheme inspected. During this 3rd Surveillance

Audit, auditor cannot verify the participation of stakeholders in social assessment.

Evidence that the assessment had been done with the participation of affected parties

was not available at the FGVPM Nitar Timur and Nitar POM. Thus a Major NCR MRS 06

2015 was raised by auditor.

6.1.3 Plans for avoidance or

mitigation of negative impacts

and promotion of the positive

ones, and monitoring of

impacts identified, shall be

developed in consultation

with the affected parties,

documented and timetabled,

including responsibilities for

implementation.

Major Compliance

No

Social action plan was made available at FELDA Nitar 2. The action plan has addressed

issues that had been discussed during JCC Meeting with stakeholders. However, auditor

did not found social action plan at FGVPM Nitar Timur. While for Nitar POM, most of the

issues highlighted in the action plan were more on estate issues and less on mill issues

although the mill has reviewed their social action plan dated 1 April 2014. Thus a Major

NCR MRS 07 2015 was raised by auditor.

.

6.1.4 The plans shall be reviewed

as a minimum once every

two years and updated as

necessary, in those cases

where the review has

concluded that changes

should be made to current

practices. There shall be

evidence that the review

includes the participation of

affected parties

Minor Compliance

No

Nitar POM and FELDA Nitar 2 had reviewed their social action plan dated 1 April 2014.

However, FGPVM Nitar Timur did not reviewed their social action plan from Stage 2 Audit

in 2012 until Surveillance 1 Audit in 2015. Thus a Minor NCR MRS 08 2015 was raised

by auditor.

Page 48 of 83

6.1.5 Particular attention shall be

paid to the impacts of

smallholder schemes (where

the plantation includes such a

scheme).

Minor Compliance

Yes There were no smallholder schemes at the Nitar CU. However, there was third party FFB

supplier (no agreement) who send their FFB to Nitar POM. The CU had invited them to

JCC meeting and training on awareness on RSPO. The training also had explained on

the attention of impacts especially on social.

C 6.2

There are open and

transparent

methods for

communication and

consultation

between growers

and/or millers, local

communities and

other affected or

interested parties

6.2.1 Consultation and

communication procedures

shall be documented.

Major Compliance

Yes

There was available procedure of communication FGVPMI/L2/QOHSE-6.0 titled ‘Manual

Prosedur, Komunikasi, Penglibatan dan Rundingan’ (Communication, Participation and

Consultation). It included internal and external consultation.

6.2.2 A management official

responsible for these issues

shall be nominated.

Minor Compliance

Yes

A management official at the operating unit level had been assigned to be in charge on

communication and consultation with stakeholders was Mr Mohd Saari Ahmad dated 12

March 2015 for FGVPM Nitar Timur and Hishamuddin Jasmani for FELDA Nitar 2 since

2013. Wan Mohamad Shukri was nominated by management to responsible for any

issues related with Nitar POM.

6.2.3 A list of stakeholders,

records of all communication,

including confirmation of

receipt and that efforts are

made to ensure

understanding by affected

parties, and records of

actions taken in response to

input from stakeholders, shall

be maintained.

Minor Compliance

Yes

There was a list of stakeholders, internal and external, produced by the CU. There were

document to show consultations and communication between CU and stakeholders, for

example, Joint Consultative Committee (JCC), Minit Mesyuarat Jawatankuasa Wanita

(minutes of Gender Committee meetings) and Minit Mesyuarat JKKR (minutes of the

Scheme Development and Safety Committee meetings). All issues raised were given due

attention and actions had been taken to resolve the issues raised.

Nitar POM had updated their stakeholders in January 2015 with their new contractors

which were Powerview Eng SB (contractor), Antero Teknik SB (electrical supplier) and

YPJ Plantation (3rd party FFB supplier). The mill also had communicated with their

stakeholders (contractors Antero and YPJ Plantations) on 3 March 2015.

Page 49 of 83

While for FELDA Nitar 2, list of stakeholders was updated with addition of Orang Asli Sg.

Tuba, YPJ Holding, Mados Corp. Holding, D’Mart, Mersing District Forestry Department

and Wildlife Department (PERHILITAN). And there was evidence of communication

record to show that the Orang Asli Sg, Tuba had been consulted by management. The

management had communicated with Ranger from PERHILITAN on 5 May 2015 on the

issue of elephant attack.

Record list of stakeholders and record of all communication including actions taken were

made available at FGVPM Nitar Timur. Example of their stakeholders as listed below:

1. YPJ Oil Palm Estate 2. Felcra Sg Melikai 3. Sejati Teguh – contractor for road maintenance and piping 4. Abd Rasid Daud – contractor for transportation 5. Forest District Office Mersing 6. Orang Asli Sg. Tuba

C 6.3

There is a mutually

agreed and

documented

system for dealing

with complaints and

grievances, which

is implemented and

accepted by all

affected parties

6.3.1 The system, open to all

affected parties, shall resolve

disputes in an effective, timely

and appropriate manner,

ensuring anonymity of

complainants and

whistleblowers, where

requested.

Major Compliance

No

A procedure titled ‘Prosedur Menangani Aduan dan Rungutan’ was sighted at Nitar POM.

There was also additional procedure ‘Ekstrak Polisi & Prosedur Pemberian Maklumat

(FGVHB/GIA/WB (2015))’ that addressed on ensuring anonymity of complainants and

whistleblowers.

The system was open to everyone, external as well as internal (scheme participants,

workers/employees) communities. There was no evidence indicating the system was

limited to certain parties (e.g. workers/employees and scheme participants only).

However, the procedure especially on the protection of complainants and whistleblowers

was not available at FGVPM Nitar Timur and FELDA Nitar 2. Thus a Major NCR MRS 09

2015 was raised by auditor.

6.3.2 Documentation of both the

process by which a dispute

was resolved and the

outcome shall be available.

Major Compliance

Yes

Since the procedure and system has been put in place only recently there were hardly

any complaints recorded through the channels stated above. There was no disputes

issues occurred in FGVPM Nitar Timur and FELDA Nitar 2.

Nonetheless, the few complaints recorded were dealt with in a timely manner as the

records in the Complaint Book demonstrated. Detail of complaints or grievances (Buku

Aduan) were made available at FGVPM Nitar Timur.

Page 50 of 83

A foreign worker has made a complaint on pipe leakage at his quarters dated 10 May

2015. Management has fixed the piping dated 11 May 2015. While at FELDA Nitar 2,

settlers, Mahadi Mukri has made a complaint on Volunteer Oil Palm Seedlings (VOP) was

not sprayed and pruning was not finished dated 3 April 2015. The action had been taken

by management on the same day.

While, Nitar POM has prepared ‘Buku Aduan dan Permohonan’ for their stakeholders such as staffs, lorry driver, authorities and settlers. The complaints book was open to everybody. Example: On 3 April 2015, Rahmat Sobri Razali, mill workers has made a complaint on deduction of cooperative (KOGUNA) by FELDA’s Finance Department without permission. FELDA HQ has stopped the deduction started from 25 April 2015.

C 6.4

Any negotiations

concerning

compensation for

loss of legal,

customary or user

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.

6.4.1 A procedure for identifying

legal, customary or user

rights, and a procedure for

identifying people titled to

compensation, shall be in

place.

Major Compliance

Yes

There was a specific procedure in place for identifying legal and customary rights and for

identifying people titled ‘Prosedur Mengenalpasti Hak Perundingan dan Adat’ (ML-1A/L2-

PR12(0)) (Procedure for identifying legal, customary or user rights) and ‘Prosedur

Penghitungan dan Pengagihan Pampasan’ (ML-1A/L2-PR13(0)) (Procedure for

identifying people titled to compensation). Thus, previous NCR ZE04 was satisfactorily

closed.

6.4.2 A procedure for calculating

and distributing fair

compensation (monetary or

otherwise) shall be

established and

implemented, monitored and

evaluated in a participatory

way, and corrective actions

taken as a result of this

evaluation.

This procedure shall take into

account: gender differences

in the power to claim rights,

Yes

There was a specific procedure in place for calculating and distributing fair compensation

(monetary or otherwise) titled ‘Prosedur Penghitungan dan Pengagihan Pampasan (ML-

1A/L2-PR13(0))’ (Procedure for calculating and distributing fair compensation).

Page 51 of 83

ownership and access to

land; differences of

transmigrants and long-

established communities;

and differences in ethnic

groups’ proof of legal versus

communal ownership of land.

Minor Compliance

6.4.3 The process and outcome of

any negotiated agreements

and compensation claims

shall be documented, with

evidence of the participation

of affected parties, and made

publicly available.

Major Compliance

Yes

There was no issue raised on compensation for FGVPM Nitar Timur and FELDA Nitar 2.

C 6.5

Pay and conditions

for employees and

for contract workers

always meet at

least legal or

industry minimum

standards and are

sufficient to provide

decent living wages

6.5.1 Documentation of pay and

conditions shall be available.

Major Compliance

Yes

The agreement between the Tementi CU and the workers’ unions, namely Perjanjian

Bersama Di Antara FELDA Palm Industries Sdn Bhd dan Kesatuan Pekerja-pekerja

FELDA Palm Industries Sdn Bhd (Semenanjung) were signed between the staff unions

and the Company to adopt the pay and conditions for their staff.

Contracts of pay and conditions were documented and in compliance with the law. Pay

and conditions and contracts were verified through interview and record verification at

Nitar POM, FGVPM Nitar Timur dan FELDA Nitar 2. Sample of payslip of workers were

verified by auditor such as 5 foreign workers at FGVPM Nitar Timur from Bangladesh (AR

100763, BB 0587606 & BB 0190713) and Indonesia (AS 652689 & AR 663716) March

and April 2015. The wages for all foreign workers were above than minimum wages. Thus,

previous Major NCR ZE 04 was satisfactorily closed.

6.5.2 Labour laws, union

agreements or direct

contracts of employment

detailing payments and

conditions of employment

(e.g. working hours,

Yes

FGVPM Nitar Timur had kept work agreement of Indonesian (AS652689) and Bangladesh workers. While FELDA Nitar 2 had kept the work agreement of Indonesian and Indian foreign workers; Zainal Abidin (AR984001) and Indian worker (J7598778). Thus, previous NCR ZE 05 was satisfactorily closed.

Page 52 of 83

deductions, overtime,

sickness, holiday entitlement,

maternity leave, reasons for

dismissal, period of notice,

etc.)

shall be available in the

languages understood by the

workers or explained

carefully to them by a

management official.

Major Compliance

6.5.3 Growers and millers shall

provide adequate housing,

water supplies,

medical,educational and

welfare amenities to national

standards or above, 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).

Minor Compliance

Yes

During site visit at FGVPM Nitar Timur, the cabin was not used and has been replaced

with new quarters for foreign workers. While FELDA Nitar 2 has provided new quarters

for foreign workers and weekly monitoring has been conducted by Assistant Manager.

Nitar POM also has provided quarters for their workers. They have planned that the old

quarters will be upgraded this year. Thus, previous Minor NCR ZE 08 was satisfactorily

closed.

6.5.4 Growers and millers shall

make demonstrable efforts to

monitor and where able,

improve workers’ access to

adequate, sufficient and

affordable food.

Minor Compliance

Yes

D’Mart grocery shop was available at FELDA Nitar 2 for settlers and foreign workers.

Based on interview with settlers and foreign workers, goods prices at D’Mart was

affordable and they were satisfied with the services.

Page 53 of 83

C 6.6

The employer

respects the rights

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.

6.6.1 A published statement in

local languages recognising

freedom of association shall

be available.

Major Compliance

Yes

An official published statement titled ‘Polisi Kebebasan Menganggotai Khidmat Sukarela’

(Freedom of Association Policy) was available and maintained. It was endorsed by

President & CEO FGV on 1 June 2014. It was displayed at administration office notice

board at the Nitar POM, FGVPM Nitar Timur and FELDA Nitar 2. Interviews with FELDA

staffs, they were encouraged by management to become members of Kesatuan Pekerja-

pekerja FELDA (Staff Association).

6.6.2 Minutes of meetings with

main trade unions or workers

representatives shall be

documented.

Minor Compliance

Yes

Union meeting has been conducted by union’s Exco on 9 April 2015. However, minutes

meeting with main trade unions or workers representatives was not available at FGVPM

Nitar Timur. The meeting minute was declared as confidential by the Union’s President

and only send to Exco only. RSPO auditor also was not allowed to review the document

due to confidentiality.

C 6.7

Children are not

employed or

exploited.

6.7.1 There shall be documentary

evidence that minimum age

requirements are met.

Major Compliance

Yes

The statement policy on no employment of children below 17 years old was made

available and posted in public places. There was a clear evidence that the minimum age

requirement had been met. There was no record of persons under the age of eighteen,

the minimum working age under Malaysian Labor Laws (Am. Act A1238) being hired by

the CU. In the case of participants who used family labour to work their lot/land, child

labour was not used. This was confirmed through interviews with the participants as well

Page 54 of 83

as the Scheme Manager.

Nitar CU has continued to comply with policy statement titled 'Polisi Pekerja-pekerja

Kanak-kanak' (Policy on Employment of Children) prohibiting employment of children

below 17 years old. The assessment team had verified employment card and copies of

passports at Nitar POM, FGVPM Nitar Timur and FELDA Nitar have confirmed that there

were no records of persons under age of eighteen, the minimum working age under

Malaysian Labor Laws (Am. Act A238). Based on list of workers at FGVPM Nitar Timur

and FELDA Nitar 2, the youngest workers were 19 and 20 years old from Indonesia

(A6737440 & AT201976).

C 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.

6.8.1 A publicly available equal

opportunities policy including

identification of

relevant/affected groups in

the local environment shall

be documented.

Major Compliance

Yes

The policy of equal opportunities policy titled 'Polisi Kesetaraan Peluang' was displayed

at the Nitar POM, FGVPM Nitar Timur and FELDA Nitar 2 office noticeboard. The policy

stated clearly the equal rights to all employees irrespective of race, caste, nationality,

religion, gender, union member and disability. It was also explained to foreign workers

and found understood by them.

6.8.2 Evidence shall be provided

that employees and groups

including local communities,

women, and migrant workers

have not been discriminated

against.

Major Compliance

Yes

An interview with Indonesian, Bangladesh and Indian foreign workers at the FGVPM Nitar

Timur and FELDA Nitar 2, there was no evidence of discrimination. Workers were treated

equally and they also satisfied with the job opportunities.

6.8.3 It shall be demonstrated that

recruitment selection, hiring

and promotion where

relevant are based on skills,

capabilities, qualities, and

medical fitness necessary for

the jobs available.

Minor Compliance

Yes

Recruitment of new workers has been announced publicly at FELDA Nitar 2. The interview

was conducted on 21 August 2014. The selection was based on skills, capabilities,

qualities and medical fitness. Nitar POM also has established procedure on recruitment

of workers based on skills, capabilities, qualities and medical fitness – ‘Garis Panduan

Pengambilan Pekerja’ – Arahan Pengurusan Bil. 6 (2011). The mill has announced to

public by displaying the announcement at all FELDA’s mill and estates. The interview were

conducted on 11 June 2015.

C 6.9

There is no

harassment or

6.9.1 A policy to prevent sexual

and all other forms of

harassment and violence

Yes

Nitar POM, FGVPM Nitar Timur and FELDA Nitar 2 have maintained sexual harassment

policy titled 'Polisi gangguan seksual, keganasan serta hak kebebasan reproduksi (Policy

of sexual harassment, violence and reproductive rights)'. It was made available to

Page 55 of 83

abuse in the work

place, and

reproductive rights

are protected.

shall be implemented and

communicated to all levels of

the workforce.

Major Compliance

employees in language they understand i.e. written in Malay language. FGVPM Nitar

Timur, FELDA Nitar 2 and Nitar POM have communicated the policy to all level of

workforce during morning muster, Gerakan Pembangunan Wanita (GPW) and Kelab

Keluarga Dayabudi (KKD) on 16 March 2015.

6.9.2 A policy to protect the

reproductive rights of all,

especially of women, shall be

implemented and

communicated to all levels of

the workforce.

Major Compliance

Yes

FGVPM Nitar Timur, FELDA Nitar 2 and Nitar POM have communicated the policy to all

level of workforce during morning muster, Gerakan Pembangunan Wanita (GPW) and

Kelab Keluarga Dayabudi (KKD) on 16 March 2015.

6.9.3 A specific grievance

mechanism which respects

anonymity and protects

complainants where

requested shall be

established, implemented,

and communicated to all

levels of the workforce.

Minor Compliance

No

Nitar POM, FGVPM Nitar Timur and FELDA Nitar 2 have established specific procedure

on sexual harassment, implemented and communicated to all levels of the workforce on

grievance mechanism. There were an additional procedures available at Nitar POM –

‘Ekstrak Polisi & Prosedur Pemberian Maklumat (FGVHB/GIA/WB (2015)) in order to

protect complainants including ‘Prosedur Aduan Gangguan Seksual 2011’. However, the

additional procedures were not available at FGVPM Nitar Timur and FELDA Nitar 2. Thus

a Minor NCR MRS 10 2015 was raised by auditor.

C 6.10

Growers and

millers deal fairly

and transparently

with smallholders

and other local

businesses.

6.10.1 Current and past prices paid

for Fresh Fruit Bunches

(FFB) shall be publicly

available.

Minor Compliance

Yes

Daily current and past prices paid for FFB were displayed at the notice board at the Nitar

POM (entrance gate). Based on interviews held with settlers and third party FFB supplier

reveal that they were happy on their FFB prices paid by the mill. The prices offered by the

CU had followed the MPOB’s guidelines.

6.10.2 Evidence shall be available

that growers/millers have

explained FFB pricing, and

pricing mechanisms for FFB

and inputs/services shall be

documented (where these

are under the control of the

mill or plantation).

Major Compliance

Yes

The purchase of FFB was found to be conducted in a fair and transparent manner with

smallholders as evident from the statement on how FFB price was calculated, issuance

of monthly details on net weight and price per tonne for smallholders by FELDA Palm

Industries Sdn Bhd and written acknowledgement on the receiving of FFB from each

smallholder. FELDA Nitar 2 also has displayed the FFB price followed from MPOB rate at

the office notice board. Nitar POM has briefed their FFB calculation to settlers and 3rd

party FFB suppliers including contractors, suppliers. Based on interview with settlers at

FELDA Nitar 2, setters admit that manager and representative from MPOB has briefed

the FFB price to them.

Page 56 of 83

Price mechanism for FFB was stated in the FELDA Manual Procedure - 'FGVPMI/L2/19-

01 - Pembelian BTS'. Generally, FELDA was referring the FFB prices at the MPOB

website. (http://bepi.mpob.gov.my/index.php/statistics/price/daily.html).

6.10.3 Evidence shall be available

that all parties understand

the contractual agreements

they enter into, and that

contracts are fair, legal and

transparent.

Minor Compliance

Yes

An interviews with contractors i.e. Powerview Eng. Sdn Bhd (maintenance of turbine) and

Antero Teknik Sdn Bhd (supllier) at Nitar POM, the mill has offered a contract in 2015.

The agreement were understood and agreed by both parties. Both contractors agreed that

the contract are fair, legal and transparent.

While for third party FFB supplier such as YPJ Plantation, the company’s representatives

was understand and agreed that the contract was fair, legal and transparent. However,

auditor was not allowed to verify the agreement due to confidentiality.

6.10.4 Agreed payments shall be

made in a timely manner.

Minor Compliance

Yes

All payments were made in a timely manner. Payment to contractors were made by

cheque, which was issued before seventh of the month. Auditor has verified an invoice

issued dated 20 May 2015 to Antero Teknik Sdn Bhd. The payment was made by cheque,

Invoice No: 350787828.

C 6.11

Growers and

millers contribute to

local Sustainable

development where

appropriate.

6.11.1 Contributions to local

development that are based

on the results of consultation

with local communities shall

be demonstrated.

Minor Compliance

Yes

It was noted that the CU has initiated consultations with settlers. This was evident from

the records kept on SIA. There was no local communities lived nearby to the Nitar POM,

FGVPM Nitar Timur and FELDA Nitar 2. Nitar CU was surrounded by others FELDA’s

settlers communities.

Example of contributions to local development by Nitar CU as listed below:

FGVPM Nitar Timur

1. Provide bus for children to go to school without any charge 2. Provide vehicle for emergency cases to hospital for settlers

FELDA Nitar 2

1. Scheme on small and medium business development for settlers

6.11.2 Where there are scheme

smallholders, there shall be

evidence that efforts and/or

resources have been

Yes

There was third party FFB supplier at the Nitar CU. However, there was no scheme

smallholder at Nitar CU. However, the CU still invited third party supplier to JCC meeting

and training in order to improve their FFB quality, supply chain and awareness on RSPO.

Nitar POM also has transported their empty fruit bunch (EFB) and bunch ash to all settlers’

Page 57 of 83

allocated to improve

smallholder productivity.

Minor Compliance

plantation area. Example: Wahid Maafol (FELDA Nitar 2-settler) has requested 5 tonnes

of bunch ash from Nitar POM on 19 April 2015.

C 6.12

No forms of forced

or trafficked labour

are used.

6.12.1 There shall be evidence that

no forms of forced or

trafficked labour are used.

Major Compliance

Yes

Based on interview with foreign workers from Indonesia, India and Bangladesh, they had

informed that they were not forced to work at the FGVPM Nitar Timur and FELDA Nitar

2.

6.12.2 Where applicable, it shall be

demonstrated that no

contract substitution has

occurred.

Minor Compliance

Yes

Based on interview with foreign workers from Indonesia, India and Bangladesh, they were

informed that there was no evidence of contract substitution has occurred at the FGVPM

Nitar Timur and FELDA Nitar 2

6.12.3 Where temporary or foreign

workers are employed, a

special labour policy and

procedures shall be

established and

implemented.

Major Compliance

No

Policy of foreign workers labour policy was made available at the Nitar POM and FGVPM

Nitar Timur and FELDA Nitar 2. However, procedure on employment of foreign workers

was not available at FGVPM Nitar Timur and FELDA Nitar 2. Thus a Major NCR 11 2015

was raised by auditor.

C 6.13

Growers and

millers respect

human rights

6.13.1 A policy to respect human

rights shall be documented

and communicated to all

levels of the workforce and

operations (see Criteria 1.2

and 2.1).

Major Compliance

Yes

Policy on human rights was made available at the Nitar POM, FGVPM Nitar Timur and

FELDA Nitar 2. Briefing to all level of the workforce has been conducted during morning

musters by manager or assistant manager. The effectiveness of the briefing was verified

by auditor through interview with field workers during site visit.

6.13.2 As long as children of foreign

workers in Sabah and

Sarawak are ineligible to

attend government school,

the plantation companies

should engage in a process

to secure these children

access to education as a

moral obligation.

Minor Compliance

Yes

The audited sites were located at the Peninsular Malaysia. Due to these sites were not

in Sabah and Sarawak, this indicator was not applicable to the CU.

Page 58 of 83

Principle 7: RESPONSIBLE DEVELOPMENT OF NEW PLANTINGS FGVPM-NCU has no plan for any new planting and no new development of area was observed during the visit. Therefore, Principle 7 is not applicable. Principle 8: COMMITMENT TO CONTINUOUS IMPROVEMENT IN KEY AREAS OF ACTIVITY

Clause Indicators Comply

Yes/No Findings

C 8.1

Growers and millers

regularly monitor

and review their

activities, and

develop and

implement action

plans that allow

demonstrable

continual

improvement in key

operations.

8.1.1 The action plan for continual

improvement shall be

implemented, based on a

consideration of the main

social and environmental

impacts and opportunities of

the grower/mill, and shall

include a range of Indicators

covered by these Principles

and Criteria.

As a minimum, these shall

include, but are not

necessarily be limited to:

Major Compliance

a) Reduction in use of

pesticides(Criterion 4.6);

Yes

Both FELDA Nitar 2 and FGVPM Nitar Timur have now introduced strip spraying where

possible, instead of circle and path, thus reducing chemical used for spraying. A program

to introduce cattle in future was also sighted. In order to reduce the use of rat baits to

control rats, Barn Owls were encouraged. Barn Owl boxes had been sighted in the fields.

Page 59 of 83

b) Environmental impacts

(Criteria 4.3, 5.1 and 5.2);

Yes

An Aspect and Impact assessment has been carried out , latest performance monitoring

carried out on d/d : 1st Feb, 2015, identifying the significant Environmental Impacts.

Pollution Identification Environmental improvement action plan’ has been established

and is being monitored.

It consist of a general Time table with the identification of the necessary function

responsible.

c) Waste reduction (Criterion

5.3);

Yes

Waste products and source of pollution has been identified. ‘Pollution Identification

Environmental improvement action plan’ – is used to identify the waste products and

sources of pollution – is in place and is being reviewed accordingly.

d) Pollution and greenhouse gas

(GHG) emissions (Criteria 5.6

and 7.8);

No

‘Pollution Identification Environmental improvement action plan’ – is used to identify the

waste products and sources of pollution – is in place and is being reviewed accordingly.

Green House Gaseous – Potential sources are in the identification stage.

( pls refer to NCR JS – 2015 – 10 raised above)

e) Social impacts (Criterion 6.1);

No

As sighted in the social continual action plan, FELDA Nitar 2 and FGVPM Nitar Timur

have planned to provide a badminton court for their staffs and workers, maintenance of

workers quarters, tuition for staffs’ children without any fee (sponsored by FGVPM), labour

day program, Eid Fitri and Qurban celebrations.

While Nitar POM has implemented continual improvement plan such as upgrade of worker

quarters, build new quarters for staffs and maintenance of road condition for FFB

transporter. However, there was no social continual action plan available. Thus a Minor

NCR MRS 01 2015 was raised by auditor.

f) Encourage optimising the

yield of the supply base

Yes

Settlers were offered incentives cash payments and encouraged to apply EFB in the lots

to encourage them to increase FFB production while harvesters were paid production

incentives on a monthly basis.

Page 60 of 83

RSPO Supply Chain at the palm oil mill – Mass Balance Model –Module E

Item

No Requirement NOV 2014(PAGE 27 )

Findings STAGE 2 2015

Standard Nov 2014

E.1

E.1.1

Defination

To verify :

a) the volume of certified and uncertified FFB entering the mill

b) the volume sales of RSPO certified

The claim only the volume of oil palm products produced

from processing of the certified FFB as MB

Actual FFB received July 2014 to May 2015

FFB (Mt) %

RSPO Certified

FFB

72,025.59 49.67

Non-Certified FFB 72,991.90 50.33

TOTAL 145,017.49 100.00

Actual Volume despatch RSPO products July 2014 to May 2015

(Mt)

RSPO Certified

CPO

Nil

RSPO Certified PK 3,915.53

E 2

E..2.1

Explanation

Estimate total tonnage of CPO and PK potentially produce

in a year

Based on “Kilang Sawit Nitar Baget 2015”, approximation total tonnage potential to be

produced:

CPO – 15,500 Mt

PK – 4,500Mt

E 3

E 3.1

Documented procedures

Refer to NCR # Z9 01

Page 61 of 83

The site shall have written procedures and/or work

instructions to ensure the implementation of all the

elements specified in these requirements. This shall

include at minimum the following:

a) Complete and up to date procedures covering the

implementation of all the elements in these

requirements

b) The name of the person having overall responsibility

for and authority over the implementation of these

requirements and compliance with all applicable

requirements. This person shall be able to

demonstrate awareness of the facilities procedures for

the implementation of this standard.

The facility shall have documented procedures for

receiving and processing certified and non-certified FFBs.

E 3.2 The facility shall have documented procedures for

receiving and processing certified and non-certified FFBs.

Receiving of certified and non-certified FFB procedure is stated in the FGVPM-RSPO SCCS

dated 1/2/2015.

E.4

E.4.1

Purchasing and goods in

The site shall verify and document the volumes of certified

and non-certified FFBs received.

All certified FFB came from Nitar CU’s estates and non-certified FFB come from independent

FFB suppliers. All delivery documents of certified FFB were verified to ensure the certified status

of the FFB. Volumes of certified and non-certified FFBs received by the mill had been properly

recorded and monitored. Refer to table attached.

E 4.2 The site shall inform the CB immediately if there is a

projected overproduction.

There was no overproduction observed.

E.5

E.5.1

Record keeping

a) The site shall record and balance all receipts of RSPO

certified FFB and deliveries of RSPO certified CPO

and PK on a three-monthly basis.

b) All volumes of palm oil and palm kernel oil that are

delivered are deducted from the material accounting

system according to conversion ratios stated by

RSPO.

a) Nitar POM monitored their incoming and outgoing certified product in “Laporan Daily

Figures ISCC\RSPO (BTS, CPO, Kernel” on daily basis. This records contain information

about certified FFB received, process, CPO & PK production and todate balance stock.

b) Accounting records were found to be tally – based on “Laporan Tahunan CPO”.

c) All sales were from positive stock and no short sales observed.

Page 62 of 83

c) The site can only deliver Mass Balance sales from a

positive stock can include product ordered for delivery

within three months. However, a site is allowed to sell

short (i.e. product was sold before it is in stock).

E 5.2 In cases where a mill outsources activities to an

independent (not owned by the same organization) palm

kernel crush, the crush still falls under the responsibility of

the mill and does not need to be separately certified. The

mill has to ensure that the crush is covered through a

signed and enforceable agreement.

Not applicable – no out sources activity.

E.4

E.4.1

Sales and good out

The facility shall ensure that all sales invoices issued for

RSPO certified products delivered include the following

information:

a) The name and address of the buyer;

b) The date on which the invoice was issued;

c) A description of the product, including the applicable

supply chain model (Segregated or Mass Balance)

d) The quantity of the products delivered;

e) Reference to related transport documentation.

Product transaction happened only internaly within the upstream and downstream facilities of

FELDA Group. Hence, comercial invoice is not necessary. Relevant documents during

transportation are:

Delivery order

Weighbridge ticket

Borang MPOB

E.5

E.5.1

Training

The facility shall provide the training for all staff as

required to implement the requirements of the Supply

Chain Certification Systems.

Training was conducted on June 19-20, 2014 by unit SPO , PSQM department , FVGPM on the

RSPO Supply chain standard 2014, e-trace and procedure.

The taining was attended by 2 staff consist of lab assistant & QC.

E.6

E.6.1

Claims

The facility shall only make claims regarding the use of or

support of RSPO certified oil palm products that are in

compliance with the RSPO Rules for Communications and

Claims.

Refer to NCR # Z9 02

Page 63 of 83

3.2 Identified Non-conformities

Details of the non-conformities, corrective actions taken by FGVPM-NCU and assessors’

verification of the corrective actions taken are in Attachment 7. All nonconformities have been

closed out.

3.3 Status of Non-conformities Previously Identified

All previous nonconformities were verified for the corrective actions effectiveness. Corrective

action has been taken and verified by the assessor. Details of the verified nonconformities are

in Attachment 8.

3.4 Issues Raised by Stakeholders

There were various stakeholders interviewed during this assessment comprising of workers,

surrounding villagers and contractors. Generally, all of the stakeholders had given positive

feedback towards FGVPM-NCU.

3.5 Noteworthy Positive and Negative Observation

The level of awareness among the workers on the RSPO implementation was found to be

improving. They are able to explain not only the operating procedure related to their work but

also the impact of its deviation, the consequence for not following them and the importance in

achieving conformity to the RSPO requirements. The workers housing are kept clean and

conducive. It was noted at the line-sites that the CU has also made an effort to encourage the

reuse of old tyres as flower pots.

4.0 Assessment Recommendation and Date of Closing Non-conformities

No NCR recorded. Recommended to continue certification.

Minor NCR(s) recorded. Recommended to continue certification conditional upon

acceptance of corrective action plans within 1 month of the date of this audit.

Note: Minor NCRs raised in the audit which are not addressed in the subsequent

assessment shall be upgraded to major NCRs

Major NCR(s) recorded. Proposed corrective action and evidence of implementation

within 2 months of the date of this audit to be submitted to SIRIM QAS International

Verification on major NCRs is required:

On-site audit of the following areas is recommended within 2 months (if applicable)

On-site audit not required. Records of implementation of corrective action to be

submitted for verification

Page 64 of 83

Note: The major NCRs raised during surveillance audit shall be addressed within

60 days or certificate shall be suspended. Major NCRs which are not addressed

within a further 60 days shall result in the certificate being withdrawn.

IT IS CONFIRMED THAT ALL CORRECTIVE ACTIONS TAKEN ON MAJOR NON CONFORMITIES

HAVE BEEN SATISFACTORILY REVIEWED, ACCEPTED AND VERIFIED AND ALL CORRECTIVE

ACTIONS PLANS PROVIDED ON MINOR NON CONFORMITIES HAVE BEEN SATISFACTORILY

REVIEWED AND ACCEPTED. RECOMMENDED FOR CONTINUATION OF RSPO P & C

CERTIFICATION.

Audit Team Leader:

MOHD RAZMAN SALIM 14/08/2015

___________________

(Name) (Signature) (Date)

5.0 Date of Next Surveillance Visit

The next surveillance visit will be conducted within 12 months but not sooner than 9 months

after this audit.

Page 65 of 83

Attachment 1

Location map of Nitar Certification Unit, Kluang, Johor, Malaysia

FELDA Nitar Complex

Page 66 of 83

Attachment 2

Location Map of FELDA estates in the Nitar Certification Unit

FELDA Nitar Complex

Certification Unit

Page 67 of 83

Attachment 3

Location Map of FGVPM Nitar Timur

Page 68 of 83

Attachment 4

Location Map of FELDA Nitar 1

Page 69 of 83

Attachment 5

Location Map of FELA Nitar 2

Page 70 of 83

Attachment 6

Assessment Programme

Day 1: 25 May 2015 (Monday)

Time Activities / areas to be visited

9.00 – 9.30 am

Opening meeting at Nitar Palm Oil Mill Lead Auditor to introduce audit team member, brief on audit objectives, scope, methodology, criteria and programmes Organization Representative to brief on the following :

1) RSPO implementation at Nitar Certification Unit (i.e. mill & supply base) including changes 2) Time bound plan for Felda Global Ventures 3) Significant changes on organization activities, machinery, supply bases capacity etc. 4) No. of settlers (managed by Felda Techno Plant or self-farming by settlers)

Top mgmt

& Committee

Member

Razman

Jagathesan Selvasingam

9:30 – 1:00 pm

Felda Plantation Nitar Timur

Coverage of assessment:

P1, P2, P4, P5, P6, P8

Laws and regulations

Land titles user rights

Social Impact Assessment (SIA), management plan & implementation

Complaints and grievances

Consultation with relevant government agencies

Interview workers, GPW, local communities and stakeholders

Inspection of protected sites with HCV attributes

Forested area, plantation boundary, adjacent and neighbouring land use

Nitar Palm Oil Mill

Coverage of assessment:

P1, P2, P4, P5, P8

Laws and regulations

Occupational safety & health practice – witness activities at site

Environmental management – witness activities at site

Waste & chemical management

Interview with workers , safety committee and contractors

Facilities at workplace

Training and skill development programmes

Continuous improvement

FELDA Nitar 2

Coverage of assessment:

P1, P2, P3, P4, P7, P8

Laws and regulations

Commitment to long-term economic and financial viability

Good Agricultural Practice- witness activities at site (weeding/ spraying, etc)

EFB mulching, POME application

Nursery (if any)

Chemical store/fertilizer

Plantation on hilly/swampy area

IPM implementation, training and safe use of agro-chemicals.

New planting Continuous improvement

Guide(s) for

each assessor

Page 71 of 83

Riparian zone

Continuous improvement

1.00 – 2.00 pm Break

2.00 – 5.00 pm

Continue assessment

Guide(s) for each

assessor

Day 2: 26 May 2015 (Tuesday)

Activities /areas to be visited

Razman

Jagathesan

Selvasingam

8.00 – 1.00 pm

FELDA Nitar 2

Coverage of assessment:

P1, P2, P4, P5, P6, P8

Laws and regulations

Land titles user rights

Social Impact Assessment (SIA), management plan & implementation

Complaints and grievances

Consultation with relevant government agencies

Interview workers, GPW, local communities and stakeholders

Inspection of protected sites with HCV attributes

Forested area, plantation boundary, adjacent and neighbouring land use

Riparian zone

Felda Plantation Nitar Timur

Coverage of assessment:

P1, P2, P4, P5, P8

Laws and regulations

Occupational safety & health practice – witness activities at site

Environmental management – witness activities at site

Waste & chemical management

Interview with workers , safety committee and contractors

Facilities at workplace

Training and skill development programmes

Continuous improvement

Felda Plantation Nitar Timur

Coverage of assessment:

P1, P2, P3, P4, P7, P8

Laws and regulations

Commitment to long-term economic and financial viability

Good Agricultural Practice- witness activities at site (weeding/ spraying, etc)

EFB mulching, POME application

Chemical store/fertilizer

Plantation on hilly/swampy area

IPM implementation, training and safe use of agro-chemicals.

New planting

Continuous improvement

Guide(s) for each

assessor

Page 72 of 83

Continuous improvement

1.00 – 2.00 pm Break

2.00 – 5.00 pm

Continue assessment

Guide(s) for

each assessor

Day 3: 27 May 2015 (Wednesday)

Activities /areas to be visited

Razman

Jagathesan

Selvasingam

Zulkarnain

8.00 – 1.00 pm

Nitar Palm Oil Mill

Coverage of assessment:

P1, P2, P4, P5, P6, P8

Laws and regulations

Land titles user rights

Social Impact Assessment (SIA), management plan & implementation

Complaints and grievances

Consultation with relevant government agencies

Interview workers, GPW, local communities and stakeholders

Inspection of protected sites with HCV attributes

FELDA Nitar 2

Coverage of assessment:

P1, P2, P4, P5, P8

Laws and regulations

Occupational safety & health practice – witness activities at site

Environmental management – witness activities at site

Waste & chemical management

Interview with workers , safety committee and contractors

Training and skill development programmes

Felda Plantation Nitar

Timur

Coverage of assessment:

P1, P2, P3, P4, P7, P8

Laws and regulations

Commitment to long-term economic and financial viability

Good Agricultural Practice- witness activities at site (weeding/ spraying, etc)

Chemical store/fertilizer

Plantation on hilly/swampy area

Nitar Palm Oil Mill

RSPO Supply Chain

implementation including

the model used

General Chain of Custody System Requirements for the supply chain

Supply chain model

Conversion model

Training

Complaint

Management Review Meeting

Supply Chain Model (Moduler requirement)

Documented procedures

Purchasing and goods in

Outsourcing activity

Guide(s) for

each assessor

Page 73 of 83

Forested area, plantation boundary, adjacent and neighbouring land use

Riparian zone

Continuous improvement

Continuous improvement IPM implementation, training and safe use of agro-chemicals.

Sales and goods out

Processing

Records keeping

Registration

Claims

1.00–2.00 pm Break

2.00 – 4.00 pm

Continue assessment on unfinished area

Verification on outstanding issues

Audit Team discussion, preparation on audit findings and issuance of NCR (if any)

Guide(s) for

each assessor

4.00 – 6.00 pm

Closing meeting

Top management & Committee

member

Page 74 of 83

Attachment 7

Detail of Non-conformities and Corrective Actions Taken

P & C Indicator

Specification

Major/Minor

Detail Non-conformances Corrective Action Taken by the CU and

Verification by Assessors

Requirement

E 3.1

Major

NCR #: Z9 01 2015

The company’s procedure entitled “SOP Perkilangan untuk pematuhan system

pensijilan RSPO SCCS (Mass Balance)” does not address all elements as stated

in Module E to comply with RSPO Standard, 21 November 2014. The company

procedures was sighted and found some elements was not stated accordingly.

Management has revised their SOP dated 1 March 2015.

The procedure has addressed all elements related with

Module E to comply with RSPO Standard.

Status: Closed

Requirement

E 2.2

Major

NCR #: Z9 02 2015

The mill has dispatched 3,915.53 MT of RSPO certified PK MB for the period of July

2014 to May 2015. However, the mill has yet to register their transaction in the

RSPO IT platform at the time of physical shipment/delivery as required

by the rules set by RSPO. No e-trace record was made available during the audit.

Auditor has received e-trace record for dispatched of

certified PK MB from the CU.

Status: Closed

Indicator: 1.2.1

Minor

NCR #: MRS 01 2015

1. There was no evidence to show Nitar POM, FGVPM Nitar Timur and FELDA Nitar 2 had informed their stakeholders that all management documents as required in Indicator 1.2.1 were made available to public

2. HCV documentation summary was not available at FGVPM Nitar Timur and FELDA Nitar 2.

3. Continual improvement plan for social was not available at Nitar POM

iii.

Management will held management review meeting in

order to review and revise the related procedure. The CU

also will be prepare HCV documentation summary and

social continual improvement plan.

Status: The implementation and effectiveness of

corrective action will be verified during next audit.

Page 75 of 83

Indicator: 2.1.1

Major

NCR #: JS-2015-01

For the following use of highly toxic pesticides – records using Form I, II & III, as

required by Pesticides Act 1974 ( Act 149) & Regulations, Rules and Order –

Highly Toxic Pesticides Regulations 1996 – Second Schedule. The mechanism for

complying with the above stated sub sections of the concerned acts are not effective.

iv. i) Noted at Nitar Timur - the use of Monocrotophos (highly toxic pesticides) and periodic spraying with Paraquat (highly toxic pesticides) and its mixture.

v. ii) Noted at Nitar 2 - the periodic spraying with Paraquat (highly toxic pesticides) and its mixture.

Auditor has received Form I, II and III from FELDA Nitar

2 and FGVPM Nitar Timur for the use of Monocrotophos

and Paraquat.

Status: Closed

Indicator: 4.1.3

Minor

NCR #: JS-2015-02

The mechanism for taking appropriate mitigating actions and maintenance of

records for follow up activities resulting from the findings raised during the RSPO

internal audit is not effective. The follow – up evidence records from the following

RSPO internal Audit exercises are not available.

iii) RSPO internal Audit at Nitar Timur estate – 4th March, 2015 iv) RSPO internal Audit at Nitar 2 estate – 3rd March, 2015

PSQM will improve on the follow-up for findings raised

during internal audit. The CU need to give a respond for

findings raised within the allocated time frame.

Status: The implementation and effectiveness of

corrective action will be verified during next audit.

Indicator: 4.5.2

Minor

NCR #: STK 01 2015

In both FELDA Nitar 2 and Felda Nitar Timur there were no records to indicate that

this training was carried out.

Training on IPM will be conducted by management. And

attendance list will be kept in the training file.

Status: The implementation and effectiveness of

corrective action will be verified during next audit.

Indicator: 4.6.4

Major

NCR #: STK 02 2015

In Felda Nitar Timur records indicate that 1530, 2320, 1640, 2575, 980 liters had

been used in 2011, 2012, 2013, 2014 and 2015 (until April) respectively

*(Upgraded to Major NCR).

Management of FGVPM Nitar Timur has officially

informed through letter dated 12 June 2015 titled ‘Arahan

Pengurangan Penggunaan Racun Paraquat’ to their

staffs and workers to replace paraquat with other

pesticides or reduce usage of paraquat or applying

manual technique.

Status : Closed

Page 76 of 83

Indicator: 4.6.11

Major

NCR #: JS-2015-03

At Nitar 2 Estate - The pesticide handling operators of the following contractors, who

are carrying out pesticide spraying activities are not being subjected to medical

surveillance.

i) Syarikat Azmi Usaha Jaya & Syarikat Perniagaan Nur Utama ii) Koperasi Peneroka – Peneroka Felda Nitar Satu berhad

Auditor has received medical report for Syarikat Azmi

Usaha Jaya & Syarikat Perniagaan Nur Utama, Koperasi

Peneroka – Peneroka Felda Nitar Satu Berhad dated 14

& 15 July 2015 by registered OHD JKKP

HQ/08/DOC/00/488.

Status: Closed

Indicator: 4.7.2

Major

NCR #: JS-2015-04

At Nitar Timur Water treatment plant ( used for drinking )

i) The water treatment has not been risk assessed to determine the potential associated risks.

ii) No clear operating procedures, for the treatment plant has been established.

Auditor has received HIRARC for water treatment plant

and Manual Operasi Bekalan Air dated 1 June 2015 and

15 October 2011.

Status: Closed.

Indicator: 4.7.5

Minor

NCR #: JS-2015-05

At the Nitar POM the Emergency handling procedures and Emergency response

plan related to the operation of the Biogas plant is yet to be established.

Nitar POM will prepare Emergency Response Plan and

procedure for Biogas plant

Status: The implementation and effectiveness of

corrective action will be verified during next audit

Indicator: 4.7.5

Minor

NCR #: JS-2015-06

At the Nitar 2 - Unable to sight evidence of Trained First Aiders in the field operation.

Certificate for trained first aiders will be filed at the estate

office.

Status: The implementation and effectiveness of

corrective action will be verified during next audit

Indicator: 4.7.7

Minor

NCR #: JS-2015-07

At the Nitar POM & Nitar Timur Estate – the method of using Lost Time Accident

Metrics for recording Occupational Injuries has not been implemented.

Management will be using new method for recording

Occupational Injuries; Lost Time Accident Metrics.

Status: The implementation and effectiveness of

corrective action will be verified during next audit.

Page 77 of 83

Indicator: 4.8.2

Minor

NCR #: JS-2015-08

At Nitar 2 unable to sight records for the following Trainings carried out :

i) Safe method of Handling Pesticides – Provided by supplier ‘Round- Up’ – 13th March, 2015

ii) Fire hazard – Emergency handling – Provided by Felda Manager – February, 2015.

Management will be kept the trainings record in the

training file.

Status: The implementation and effectiveness of

corrective action will be verified during next audit.

Indicator 5.2.2

Major

NCR #: MRS 02 2015

1. Action plan for RTE species (elephant) and HCV area (Mersing Forest Reserve and Gunung Arong Tambahan Forest Reserve) was not available at FGVPM Nitar Timur.

2. FELDA Nitar 2 had reviewed their HCV action plan for 2015. However, the action plan did not addressed on RTE species (elephant) and HCV area (Mersing Forest Reserve)

Auditor has received action plan for RTE and HCV area

for FGVPM Nitar Timur and FELDA Nitar 2 for 2015.

Status: The implementation and effectiveness of

corrective action will be verified during next audit.

Indicator 5.2.3

Minor

NCR #: MRS 03 2015

1. Training programme on RTE species and appropriate disciplinary measures were not available at FGVPM Nitar Timur.

2. FELDA Nitar 2 had planned on RTE training for 2015. However, there was no appropriate disciplinary measures established by the estates.

Management will be carried out a training programme on

RTE species and establish an appropriate disciplinary

measures for both estates. The CU also will get an

advise from PERHILITAN for appropriate disciplinary

measures.

Status: The implementation and effectiveness of

corrective action will be verified during next audit.

Indicator 5.2.4

Minor

NCR #: MRS 04 2015

1. Auditor did not found any evidence of monitoring on status of HCV (Mersing Forest Reserve and Gunung Arong Tambahan Forest Reserve) and RTE species (elephant) at FGVPM Nitar Timur.

2. FELDA Nitar 2 has established HCV monitoring for RTE species (elephant). However the monitoring plan did not included HCV area; Mersing Forest Reserve.

Management will give a log book/ monitoring form to the

CU to monitor RTE species and HCV area.

Status: The implementation and effectiveness of

corrective action will be verified during next audit.

Page 78 of 83

Indicator 5.3.3

Minor

NCR #: JS-2015-09

At the Nitar Timur Estate Workshop Store – Noted old tyres and containers

containing unidentified contents. The disposal plan for these items have not been

established.

Management will develop waste disposal plan for old

tyres and containers.

Status: The implementation and effectiveness of

corrective action will be verified during next audit.

Indicator 5.6.3

Minor

NCR #: JS-2015-10

At the Nitar POM - Unable to sight and verify a monitoring mechanism for the

identified significant pollutants and greenhouse gases, with regular reporting on

progress for these significant pollutants and emissions from estate and mill

operations, using appropriate tools.

Management will prepare monitoring record for the

identified significant pollutants and using PalmGHG

calculator for reporting method.

Status: The implementation and effectiveness of

corrective action will be verified during next audit.

Indicator 6.1.1

Major

NCR #: MRS 05 2015

Social impact assessment (SIA) was not available at FGVPM Nitar Timur and

FELDA Nitar 2.

Auditor has received a Social impact assessement (SIA)

titled ‘Laporan Penilaian Impak Sosial Kompleks Nitar’

dated 24 Mei 2015 for FGVPM Nitar Timur and FELDA

Nitar 2.

Status : Closed

Indicator 6.1.2

Major

NCR #: MRS 06 2015

Auditor cannot verify participation of stakeholders (attendance list) for Social

Assessment Report entitled ‘Laporan Penilaian Impak Sosial Kompleks Nitar’ at the

FGVPM Nitar Timur and Nitar POM.

Auditor has received attendance list for Social

Assessment Report for FGVPM Nitar Timur and Nitar

POM.

Status: Closed

Indicator 6.1.3

Major

NCR #: MRS 07 2015

1. Social action plan was not available at FGVPM Nitar Timur 2. Most of issues highlighted in Social Action Plan (1 April 2014) for Nitar POM

were more on estate issues and less on mill

Auditor has received Social action plan 2015 for FGVPM

Nitar Timur and Nitar POM.

Status: Closed.

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Indicator 6.1.4

Minor

NCR #: MRS 08 2015

FGPVM Nitar Timur did not reviewed their social action plan from Stage 2 Audit in

2012 until Surveillance 1 Audit in 2015.

Management will reviewed its social action plan for 2015.

Status: The implementation and effectiveness of

corrective action will be verified during next audit.

Indicator 6.3.1

Major

NCR #: MRS 09 2015

FGVPM Nitar Timur and FELDA Nitar 2 has established a manual entitled ‘Manual

RSPO Kumpulan Felda: Rungutan, Keingkaran, Siasatan Insiden dan Tindakan

Pembetulan’. However, the procedure did not addressed on the protection of

complainants and whistleblowers

The CU have revised a ‘3.5 Prosedur Menangani Aduan

dan Rungutan – 7.0 Perlindungan dan Kerahsiaan’ and

revised a ‘Polisi & Prosedur Pemberian Maklumat – 5.0

Perlindungan’ dated 22 Mei 2015 and 24 February 2015

which have addressed on the protection of complainants

and whistleblowers.

Status: Closed.

Indicator 6.9.3

Minor

NCR #: MRS 10 2015

FGVPM Nitar Timur and FELDA Nitar 2 have established specific procedure on

sexual harassment (ML-1A/L2-PR10 (0)). However, the procedure did not

addressed on the protection of complainants and respects anonymity where

requested.

Management will review the procedure by address on

the protection of complainants and anonymity.

Status: The implementation and effectiveness of

corrective action will be verified during next audit.

Indicator 6.12.3

Major

NCR #: MRS 11 2015

Labour policy for foreign workers was made available at FGVPM Nitar Timur and

FELDA Nitar 2. However, procedure on employment of foreign workers was not

available.

Auditor has reviewed a procedure on employment of

foreign workers ‘Seksyen 3 – Kemasukan Pekerja Asing

Ke Ladang’ and ‘Seksyen 9 – Penempatan Pekerja

Ladang’ dated 1 April 2015.

Status : Closed

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Attachment 8

Verification of Previous Audit Findings

Indicator Specification Major/Minor

Detail Non-conformances Corrective Action Submitted Verification by Assessor

Indicator 2.1.1 (MM01)

Major 1. Pesticides were not stored in accordance to the Occupational Health and Safety Health Act 1994 and Pesticides Act 1974 as sighted at store belonging to Azmi Usaha Jaya Enterprise 2. CHRA had not been conducted for contractor workers (extended employees) of Ladang Jaya and Wira Bina Perdana at Nitar 2, Pkt 2and workers of Azmi Usaha Jaya Enterprise at Pkt 01as required by Use and Standards of Exposure of Chemicals Hazardous to Health Regulations 2000 3. Except at Nitar POM, functions and responsibility of OSH Committee were not made known to Committee members of the FGVPM NitarTImur and FELDA Nitar 2.

1. The store had been cleaned-up, materials segregated, rearranged and labeled accordingly. Training had also been conducted. 2. A CHRA was undertaken for FELDA Technoplant but not contractor. 3. Action plan to explain function and responsibility of OSH Committee had been submitted.

1. Materials segregated, rearranged and labelled accordingly. 2. CHRA for the Contractor Company and its employees had been carried out. 3. The functions and responsibility as per OSHA (Safety and Health Committee) Regulations 1996 had been made. The Action Plan together with supporting documents were verified. Status: Closed

Indicator 2.2.1 (NAJ-1)

Major Area/Location: FELDA Plantation Nitar Timur (Peringkat 3)

The legal ownership of the land including history of land tenure was not available at FELDA Plantation Nitar Timur (Peringkat 3)

Follow-up by FELDA Plantation Nitar Timur to FELDA HQ has been conducted on 11th January 2013, 4th February 2013, 21 February 2013 and 25 February 2013. However the legal ownership was not found. FELDA Plantation Nitar Timur has contacted the Mersing Land Department. However it was informed the progress was still in preparation of map for ownership. A letter dated 15 March 2013 from Mersing Land Department was evident.

The legal ownership for FELDA Nitar 1 and FELDA Plantation Nitar Timur (Peringkat 3) and terms of land title were made available at estate office.

Status: Closed

Indicator 4.1.1 (STK01)

Major Operating procedures not consistently implemented and monitored. 1. Palms were over pruned.

Training was carried out on GAP inclusive of

Agricultural upkeep in both FELDA Nitar 2 and FGVPM

Nitar Timur were well implemented as per the SOPs. The

pruning of palms, stacking of cut fronds and recovery of

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2. Oil Palm Loose fruits not collected. 3. Cut fronds not stacked. 4. Cut fronds not fully cut down

1. Pruning on 3 Jan. 2013 for Nitar 2 harvesters and on 17th January for Nitar Timur harvesters. 2. Loose fruit picking on 17th January for Nitar Timur. Addition 10 workers were allocated in Block 3 to collect all loose fruits. 3. Stacking of fronds on 17th January for Nitar Timur harvesters. Circle raking was carried out at Blok PM98B and PM08D to have the palm circles clear of fronds and debris.

loose fruits, which had been raised as a non-conformance

in the previous audit, had been improved and managed

well.

Status: Closed

Indicator 4.5.2 (STK02)

Minor There were no records of pest census available for year 2012 even though there were Bagworm attacks.

In 2013 Bagworm census had been carried out and programmed to carry out bi monthly census. Treatment would be carried if Bagworm attack is above threshold levels. Program to plant Beneficial Plants from Jan 2013 will be implemented.

Records of Bagworm census carried out for 2014 in Nitar Timur and FELDA Nitar 2 were verified. Status: Closed

Indicator 4.6.7 (STK03)

Minor Records, in Nitar Timur, indicate paraquart dichloride 13% used in 2011 was 1530 litres and in 2012 usage had increase by 51.63% to 2320 litres.

Wild Oil Palm Seedling or VOPs will be manually removed thus reducing amount of Paraquat to be used. Nitar timur has targeted to use only 1300 litres and 1040 litres in 2013 & 2014 respectively.

In FGVPM Nitar Timur the usage of paraquat had not been

minimised. Records indicate that 1530, 2320, 1640, 2575,

980 liters of paraquat had been used in 2011, 2012, 2013,

2014 and 2015 (until April) respectively. This issued had

been raised as a Minor NCR in 2012.

Status: Upgraded to Major NCR STK 02 2015.

Indicator 4.7.1 (MM02)

Major 1. The application of fertilizer by contract workers of Ladang Jaya standing on moving tractor at FELDA Nitar 2 Pkt2, Block 5B was not risk assessed. 2. The FELDA Nitar 2 and Nitar Timur had not conducted any emergency response drill to date

To conduct HIRADC and assessed the risk. Also informed workers of the risk assessed. To conduct Emergency drill and report the conduct of drill.

The updated HIRARC Register dated 15 December 2014 that include assessment for manual manuring by workers on moving vehicle and records of Emergency Drill Training including photographs had been sighted by assessor and found acceptable. Status: Closed.

Indicator 4.8.1 (MM03)

Major 1. The mill personnel had not been trained on the RSPO Supply Chain Certification Standard 2. Training of Environmental aspect and impact identification / assessment, Hazard Identification, Risk Assessment and Determining

To conduct the named training raised in the NCR.

Records of raining and training matrix were verified by assessor as explained in Indicator 4.8.1 and Indicator 4.8.2. Status: Closed.

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Control and Legal Awareness and Compliance not being fully implemented for operational staff and settlers at the estates and FGV Plantation Nitar Timur.. 3. RSPO Awareness training given was not fully understood by staff of FELDA (Proper, FTP and FGV Plantation) 4. RSPO Awareness training not given to contractors.

SCCS Indicator 5.2 (MM04)

Major The Nitar Palm Oil Mill has not established the required written procedures and/or work instructions for Module E – CPO Mill: Mass Balance

To established the required procedure for Module E – CPO Mill Mass Balance.

The assessor had sighted the newly established procedure and found acceptable. Status of NCR: Closed

Indicator 6.4.1 (ZE )

Major The procedure was not sighted in NitarTimur, Nitar 2 and KKS Nitar.

The required procedure had been developed by HQ.

There was a specific procedure in place for identifying

legal and customary rights and for identifying people titled

‘Prosedur Mengenalpasti Hak Perundingan dan Adat’ (ML-

1A/L2-PR12(0)) (Procedure for identifying legal,

customary or user rights) and ‘Prosedur Penghitungan dan

Pengagihan Pampasan’ (ML-1A/L2-PR13(0)) (Procedure

for identifying people titled to compensation) sighted at

Nitar POM, FELDA Nitar 1 and FGVPM Nitar Timur.

Status : Closed

Indicator 6.4.2 (ZE )

Minor The procedure was not sighted in NitarTimur, Nitar 2 and KKS Nitar.

The required procedure had been developed HQ.

There was a specific procedure in place for identifying

legal and customary rights and for identifying people titled

‘Prosedur Mengenalpasti Hak Perundingan dan Adat’ (ML-

1A/L2-PR12(0)) (Procedure for identifying legal,

customary or user rights) and ‘Prosedur Penghitungan dan

Pengagihan Pampasan’ (ML-1A/L2-PR13(0)) (Procedure

for identifying people titled to compensation) sighted at

Nitar POM, FELDA Nitar 1 and FGVPM Nitar Timur.

Status : Closed

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Indicator 6.4.3 (ZE )

Minor Records of the process and outcome of compensation claims were not available in Nitar Timur, Nitar 2 and KKS Nitar.

The process and outcome of any compensation claims had been documented.

There was no issue raised on compensation for FGVPM Nitar Timur and FELDA Nitar 2. Status : Closed

Indicator 6.5.1 (ZE )

Major Letter of job offer detailing payments and conditions of employment for local workers are available at FGVPM Nitar Timur, Nitar 2 and KKS Nitar but no records of contract of employment for foreign workers are sighted in FGVPM Nitar Timur and Nitar 2.

Nitar Timur and Nitar 2 to obtain records of employment for foreign workers.

Pay and conditions and contracts were verified through

interview and record verification at Nitar POM, FGVPM

Nitar Timur dan FELDA Nitar 2. Sample of payslip of

workers were verified by auditor such as 5 foreign workers

at FGVPM Nitar Timur from Bangladesh (AR 100763, BB

0587606 & BB 0190713) and Indonesia (AS 652689 & AR

663716) March and April 2015.

Status : Closed

Indicator 6.5.2 (ZE )

Minor Letter of job offer for local workers are available at FGVPM Nitar Timur , Nitar 2 and KKS Nitar but no records of contract of employment for foreign workers are sighted in FGVPM Nitar Timur and Nitar 2.

Nitar Timur and Nitar 2 to obtain records of employment for foreign workers. In the meantime, plans had been made to construct workers’ housing that meet the Workers’ Minimum Standard of Housing and Amenities Act 1990 (Act 446).

FGVPM Nitar Timur had kept work agreement of Indonesian (AS652689) and Bangladesh workers. While FELDA Nitar 2 had kept the work agreement of Indonesian and Indian foreign workers; Zainal Abidin (AR984001) and Indian worker (J7598778). Status : Closed

Indicator 6.5.3 (ZE )

Minor All local workers and most foreign workers in Nitar Timur are provided with houses and hostels, however some foreign workers are housed in two cabins while two hostel blocks are being built for them.

A letter had been sent to the Labour Department regarding the temporary use of the cabins.

During site visit at FGVPM Nitar Timur, the cabin was not used and has been replaced with new quarters for foreign workers. While FELDA Nitar 2 has provided new quarters for foreign workers and weekly monitoring has been conducted by Assistant Manager. Nitar POM also has provided quarters for their workers. They have planned that the old quarters will be upgraded this year. Status : Closed