sgs qualipalm oilpalm plantation management verification

Transcription

SGS QUALIPALM
(Associated Document)
Doc. Number:
Doc. Version date:
Page:
5 May 2007
1 of 59
OILPALM PLANTATION MANAGEMENT VERIFICATION REPORT
Report Nr:
MY01910-Carotino Assessment Report MA2009
Client:
CAROTINO SDN BHD (069046-T)
Report Date: 8 March 2010
RSPO membership #:
026-06(0)
Web Page:
www.carotino.com
Address:
Unit 30-08, Mail Box 238, Menara Landmark, No.12, Jalan Ngee Heng, 80000, Johor
Bahru, Johor
Telephone:
07-2231633
Country:
Malaysia
Plantation Company
Evaluated:
Carotino Sdn Bhd
Total Plantation Area
10,243.5 hectares
Company Contact
Person:
Mr Tan Ah Aia
Plantation Controller
Head office:
Mr Nadarajah Rethanam
Mill Manager
Mill:
Carotino Palm Oil Mill
Srijaya, 26030 Kuantan
Pahang
Address:
Unit 30-08, Mail Box 238, Menara Landmark, No.12,
Jalan Ngee Heng, 80000, Johor Bahru, Johor
Tel:
07-2231633
09-4813105
Fax
07-2241546
09-4813104
Email:
[email protected]
[email protected]
Evaluation dates:
Pre-assessment
2 – 5 Sept 2008
Main Assessment
11 – 15 May 2009
Surveillance 1
Surveillance 2
Surveillance 3
Assessment against RSPO MYNI Requirement
Carotino Sdn Bhd
Page 2 of 59
TABLE OF CONTENTS
1.
INTRODUCTION ..........................................................................................................................................5
2.
COMPANY BACKGROUND ........................................................................................................................6
2.1
Ownership ........................................................................................................................................................... 6
2.2
Organisational Structure...................................................................................................................................... 6
3.
Other oil plam plantations owned by the company and plan for certification under rspo p&c .........6
4.
PREPARATION FOR THE EVALUATION ..................................................................................................7
4.1
Schedule ............................................................................................................................................................. 7
4.2
Team ................................................................................................................................................................... 7
5.
THE EVALUATION ......................................................................................................................................8
5.1
Opening meeting ................................................................................................................................................. 8
5.2
Document review................................................................................................................................................. 8
5.3
Sampling and Evaluation Approach .................................................................................................................... 8
5.4
Field assessments............................................................................................................................................... 8
5.5
Summing up and closing meeting ..................................................................................................................... 10
6.
STAKEHOLDERS NOTIFICATION & CONSULTATION ..........................................................................10
7.
BACKGROUND INFORMATION OF CAROTINO CERTIFICATION UNIT ..............................................12
7.1
Introduction ...............................................................................................................................................12
7.2
Landscape view of the land use and HCV areas in the region around the estates. ............................................. 12
7.3
Land administration and settlement in the region................................................................................................. 14
7.4
Soil Suitability........................................................................................................................................................ 18
7.5
Rainfall .................................................................................................................................................................. 19
7.6
Topography, local site aspects and tracks of field inspection teams..................................................................... 20
8.
GENERAL FINDINGS OF FIELD EVALUATION ......................................................................................25
9.
EVALUATION RESULTS...........................................................................................................................31
9.1
Findings related to the general MYNI 2008 ....................................................................................................... 32
PRINCIPLE 1:
Commitment to transparency ...................................................................................................... 32
PRINCIPLE 2:
Compliance with applicable laws and regulation......................................................................... 33
PRINCIPLE 3:
Commitment to long term economic and financial viability.......................................................... 35
PRINCIPLE 4:
Use of appropriate best practices by growers and millers:.......................................................... 36
PRINCIPLE 5:
Environmental responsibility and conservation of natural resources and biodiversity ................. 42
PRINCIPLE 6:
Responsible consideration of employees and of individuals and communities affected by growers
and mills...................................................................................................................................... 47
PRINCIPLE 7:
Responsible development of new plantings ................................................................................ 53
PRINCIPLE 8:
Commitment to continuous improvement in key areas of activity................................................ 54
-----------------------------------------------------------------------------------------------------------------------------------------------------------------SGS (Malaysia) Sdn. Bhd
Unit 10-1 10th Floor Bangunan Malaysian Re, No 17 Lorong Dungun Damansara Heights
(Co. No. 10871-T)
50490 Kuala Lumpur Malaysia.
t +6 (03) 2095 9200 f +6(03) 2093 8202
www.sgs.com
Member of SGS Group (Société Générale de Surveillance)
Carotino Sdn Bhd
Page 3 of 59
10.
CHAIN OF CUSTODY ................................................................................................................................55
11.
SUMMARY OF CORRECTIVE ACTION REQUESTS (CARs) .................................................................57
12.
ASSESSMENT DECISION.........................................................................................................................58
13.
ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY AND FORMAL SIGN-OFF OF
ASSESSMENT FINDINGS....................................................................................................................................58
14.
RECORD OF STAKEHOLDER COMMENTS AND INTERVIEWS ...........................................................59
(Co. No. 10871-T)
t +6 (03) 2095 9200 f +6(03) 2093 8202
www.sgs.com
Carotino Sdn Bhd
Page 4 of 59
LIST OF ABBREVIATIONS
CAR
CHRA
CPO
DID
DOE
EFB
EIA
EMS
EQA
ERT
ESA
FFA
FFB
FR
Ha
HCV
HDPE
IPM
ISO
IUCN
JCC
JUPEM
K
kW
M
Mg
Mm
Mt
MYNI
N
NGO
OA
OER
OSH
P
P&C
PK
POME
PPE
PT
SOP
Sdn Bhd
SEIA
Sg
SGS
SOP
SPC
USECHH
WHO
yr
Corrective Action Request
Chemical Health Risk Assessment
Crude Palm Oil
Department of Drainage and Irrigation, Malaysia
Department of Environment, Malaysia
Empty Fruit Bunch
Environment Impact Assessment
Environmental Management System
Environmental Quality Act
Endangered, Rare and Threatened species
Environmentally Sensitive Area
Free Fatty Acids
Fresh Fruit Bunches
Forest Reserve
Hectare
High Conservation Value
High Density Polyethylene
Integrated Pest Management
International Organisation for Standardisation
International Union for Conservation of Nature and Natural Resources
Joint Consultative Committee
Jabatan Ukur dan Pemetaan Malaysia (Department of Survey and Mapping Malaysia)
Potassium
Kilowatt
Meter
Magnesium
Millimeter
Metric ton
Malaysia National Interpretation
Nitrogen
Non Governmental Organisation
Orang Asli (Indigenous People)
Oil Extraction Rate
Occupational Safety & Health
Phosphate
Principles and Criteria
Palm Kernel
Palm Oil Mill Effluent
Personal Protective Equipment
Pejabat Tanah (Coding for Pahang Land Office)
Standard Operating Procedures
Sendirian Berhad (Private Limited)
Social and Environment Impact Assessment
Sungai
Societe Generale de Surveillance
Standard Operating Procedures
Senior Plantation Controller
Use and Standards of Exposure of Chemicals Hazardous to Health
World Health Organisation
Year
(Co. No. 10871-T)
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Page 5 of 59
Carotino Sdn Bhd
INTRODUCTION
The purpose of the evaluation was to evaluate the operations of Carotino Sdn Bhd oil palm
mill and plantations located in Pahang, Malaysia, against the requirements of the
QUALIPALM Programme, the SGS Group’s verification programme for compliance to
RSPO P&C MYNI 2008 requirement.
1.
SCOPE OF VERIFICATION
The details of the Crude Palm Oil (CPO) mill and the oil palm plantations included in the
scope of this assessment are presented in Table 1.1 and Table 1.2 below.
Table 1.1: Summary of CPO and PK production by Carotino mill
MILL: CAROTINO PALM OIL MILL
Mill location
Capacity
FFB input
CPO output
PK output
Sri Jaya, Pahang
30 TPH
150,000 tonnes
30,300 tonnes
7,700 tonnes
Table 1.2: Summary of production area and annual production of Fresh Fruit Bunches (FFB) by Estates
NAME OF HOLDING
LOCATION
(Name of nearest
town)
PLANTATION AREA
Production
(ha)
Non
productive
(ha)
AVERAGE
ANNUAL
PRODUCTION
OF FFB
(METRIC TON)
Asia Oil Palm Estate
Sri Jaya, Pahang
2,113.3
27.5
40,000
Pahang Oil Palm
Estate
Sri Jaya, Pahang
2,013.6
127.1
30,500
Maran Estate
Sri Jaya, Pahang
1,977.1
163.7
28,400
Hwa Li Estate Div. 1 Keratong, along
Segamat-Kuantan
Highway.
2,088.7
73.2
50,000
Hwa Li Estate Div.2
1,528.7
130.5
48,000
9,721.4
522.1
196,900
Total
Along Bahau to
Segamat-Kuantan
Highway
(Co. No. 10871-T)
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Page 6 of 59
Carotino Sdn Bhd
The Carotino mill sourced FFB only from the above mentioned group estates belong to the JC
Chang Group. The estates produced surplus of FFB to the extent that significant portion of
fruits harvested by Hwa Li Divisions 1 and 2 estates are sold to other mills.
2.
2.1
COMPANY BACKGROUND
Ownership
Carotino oil mill and its supply base estates are owned and operated by JC Chang Group of
companies, a Malaysian base conglomerate specialised in oil palm plantation and refineries.
Legal ownership of the lands within the scope of this assessment is as follows:
• Hwa Li Division 1 – under 13 different PTs which are lands under the ownership of
Syarikat Keratong Sdn Bhd, a wholly owned company under JC Chang Group.
• Hwa Li Division 2 – a single title PT 2389 HSD 2850 owned by Carotino Sdn Bhd
• Maran Estates – under 6 titles belonging to Richley Corporation Sdn Bhd, which is under
Asia Oil Palm Sdn Bhd
• Asia Oil Palm Estate – under 6 land titles owned by Asia Oil Palm Sdn Bhd, a company
under JC Chang Group
• Pahang Oil Palm Estate – land belongs to Pahang Enterprise Sdn Bhd, a wholly owned
company under JC Chang Group.
2.2
Organisational Structure
Organisation and management structure of the Carotino mill and its certification unit are
shown in Appendix 1 and Appendix 2 attached to this report.
3.
OTHER OIL PLAM PLANTATIONS OWNED BY THE COMPANY AND PLAN FOR
CERTIFICATION UNDER RSPO P&C
The current verification exercise is undertaken only for Carotino Oil Mill and its supply base
from the Group’s estates in Peninsular Malaysia. JC Chang Group owns and operates 3 other
palm oil mills for processing FFB sourced from its 12 oil palm estates located in Lahad Datu,
Sabah, Malaysia.
The Carotino certification unit is the first to undergo assessment under the RSPO certification
programme. The company’s time bound plan for certification of other certification units is as
summarised in Table 3.1.
Table 3.1: JC Chang Group’s time bound plan for RSPO certification
PLANTATION MANAGEMENT UNITS UNDER JC CHANG GROUP OF
COMPANIES MANAGEMENT AND ITS PLAN FOR CERTIFICATION
Estates
Size (ha)
Location
Plan for
certification
Asia Mill & Estates
9,325
Melewar Mill & Estates
12,980
Lahad Datu, Sabah
Lahad Datu, Sabah
Mid 2010
End 2010
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Page 7 of 59
Carotino Sdn Bhd
Takon Mill & Estates
6,263
TOTAL
28,568
Tungku, Lahad
Datu, Sabah
Mid 2011
The certification plan developed by the company is quite challenging but the company has
made good progress to date where at least one unit is undergoing assessment. The group is
planning to bring its entire certification unit to certification by mid 2011. The company has
good infrastructure and resources as well as commitment from the top management in making
the plan a reality. SGS is in the opinion that the plan made is reasonable and achievable.
4.
4.1
PREPARATION FOR THE EVALUATION
Schedule
The Evaluation was preceded by a pre assessment of the certification unit carried out in
September 2008. A report outlining the weaknesses that needed to be addressed was
submitted to the company and the company has proactively engaged a consultant to assist
them in closing out the gaps.
Prior to the main assessment, communication with the management is made to prepare for the
logistics as well as to ensure that sufficient time to cover specific areas/critical activities that
were identified during the pre-assessment.
4.2
Team
The experience and qualification of the audit team members are as summarised in Table 4.1
below:
Table 4.1: Summary experience and qualification of the audit team member
Evaluation
Team
The team member background
Team Leader
Environment and
Social
Salahudin Yaacob has post graduate degree in Environment and Natural Resources management
currently head Natural Resources certification programme in SGS Malaysia. Trained as a botanist,
the team leader has gathered more than 10 years of auditing especially in the forestry sector. As a
lead auditor in forest management and chain of custody of forest products, he is well versed in
certification process and management of certification scheme. Also trained as lead auditor under
EMS and SA8000 system. Has participated in RSPO Lead Auditor Training Course and conducted
a number of RSPO audits in Malaysia.
Lead Auditor /
Plantation Expert
Tunku Nazim Tunku Yaacob is a graduate in Ecology with more than 30 years experience in
ecology, wildlife management and oil palm plantation management. Tunku is a trained ISO 14000
lead auditor and expert in ecology, biodiversity, landuse and management planning. Has gathered
many years experience of auditing in forest management, oil palm industry and other natural
resources sector at national and international levels. Has attended RSPO Lead Auditor Training
Course and conducted numerous oil palm plantation operations against RSPO requirement and
other certification/verification schemes in Malaysia and Indonesia.
Sociologist
Lim Hin Fui, PhD. Dr Lim is a sociologist by qualification and has been involved with social work
for more than 30 years. He has conducted many anthropological studies on local communities,
particularly Orang Asli in Peninsular Malaysia and other local groups in Sabah and Sarawak. Dr
Lim is an experienced auditor particularly in forest certification programmes having involved in
the certification for the last 7 years.
Auditor
Norashikin Rasikon, B.Sc. Holds a graduate degree in forestry and has been involved in
certification for the last two years. Trained under ISO system, chain of custody evaluation and
(Co. No. 10871-T)
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Page 8 of 59
Carotino Sdn Bhd
SA8000. Currently entrusted in preparing documents for certification systems and responsible for
maintaining records and reports in compliance to accreditation requirements under various
certification schemes. She is responsible for reviewing availability of relevant documentation in
compliance to the RSPO requirement as well as gathering information particularly on social
aspects.
5.
THE EVALUATION
The Evaluation was preceded by a pre-assessment carried out in September 2008. A total of
21 CARs were raised in the pre-assessment with 11 major non compliances to the MYNI.
Following RSPO standard procedures, public announcement and stakeholder consultation was
made at least 4 weeks prior to field assessment. At least 80 key stakeholders were identified
and contacted by SGS for their comments on the assessment to be carried out.
The steps for conducting main assessment are as outlined below.
5.1
Opening meeting
An opening meeting was held at Carotino Mill Sdn Bhd, Sri Jaya, Kuantan, Pahang on 11
May 2009. The scope of the evaluation was explained and schedules were determined.
Record was kept of all persons that attended this meeting.
5.2
Document review
A review of the main plantation management documentation was conducted to evaluate the
adequacy of coverage of the RSPO MYNI requirements. This involved examination of
policies, management plans, systems, procedures, work instructions and record controls.
5.3
Sampling and Evaluation Approach
Schedule for field visits were determined during the opening meeting after briefing given by
the Carotino management. Focus of the visit was to sample the implementation of
management practices and procedures.
5.4
Field assessments
Field assessments aimed to determine how closely activities in the field complied with
documented management systems and RSPO MYNI requirements. Interviews with staff,
operators and contractors were conducted to determine their familiarity with and their
application of policies, procedures and practices that are relevant to their activities. A
carefully selected sample of sites was visited to evaluate whether practices met the required
performance levels.
As part of effort to cover more areas, the verification team sometimes split and works
independently. The activities and areas visited on daily basis by the audit team are as
tabulated in the Table 5.1.
(Co. No. 10871-T)
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Page 9 of 59
Carotino Sdn Bhd
Table 5.1: Field audit schedule
Date
Area visited
Notes
11 May
2009
Opening meeting at Carotino
mill
Introduction of the audit team and explanation
on the main assessment.
Document review
Briefing on the estate and mill management
given by the managers. Document review.
Scheduling of the field audit.
12 May
13 May
Visit to Carotino mill at
Pahang Estate
Review of documentation.
Visit to Hwa Li 1 Estate
Areas covered include harvesting area,
chemical storage, chemical spraying,
replanting, waste management system,
boundary demarcation, workers
accommodation.
Meeting with District Forest
Office and JHEOA officers
in Kuala Rompin
Explanation on the audit and general discussion
on the Carotino’s management of the resource
and its association/ communication with
stakeholders. Issues pertaining to the operation
in the area which is bordering HS Lesong and
an Orang Asli Village (Kg Pasal).
Visit to Hwa Li 2 Estate
Visit to the Orang Asli village (Kg Pasal),
interview with workers representatives,
workshop, chemical storage and general
plantation operation such as harvesting and
manuring.
Visit to Asia Estate
Areas covered include clinic, local
communities, educational forest areas, riparian,
nursery, replanting, harvesting and waste
management.
Visit to Pahang Estate
Visit to the mill and observe implementation of
the raw material received, processing, CPO
production, waste management, health and
safety and record maintenance.
14 May
Maran Estate
Areas covered include local communities,
educational forest areas, riparian, nursery,
replanting, harvesting and waste management.
15 May
Closing meeting
Preliminary results of the assessment exercise
were presented to the Carotino’s management.
(Co. No. 10871-T)
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Page 10 of 59
Carotino Sdn Bhd
5.5
Summing up and closing meeting
At the conclusion of the field evaluation, preliminary findings were presented to company
management at a closing meeting held on 15 May 2009. Any areas of non-conformance with
the RSPO requirement were raised as one of two types of Corrective Action Request (CAR):
6.
Major CARs - which must be addressed and re-assessed before certification can proceed
Minor CARs - which do not preclude certification, but must be addressed by the
following surveillance, otherwise will be raised as a Major.
STAKEHOLDERS NOTIFICATION & CONSULTATION
A wide range of stakeholders were contacted 4 weeks before the planned evaluation to inform
them of the evaluation and ask for their views on relevant oil palm plantation management
issues. These included environmental and social interest groups, local government agencies
and authorities as well as workers’ unions.
During the assessment meetings and discussions were also held with relevant stakeholders
including worker’s union leaders, local community leaders, contractors as well as relevant
authorities.
Stakeholders that were contacted prior to the assessment are as listed in Table 6.1.
Table 6.1: List of stakeholders contacted
1. Contractors/vendors/suppliers
Sin Lean Hing Sdn
Bhd
Teck Guan Estate
Supply Sdn Bhd
Brite-Tech Corp Sdn
Bhd
Sabilah Holdings
Sdn Bhd
Cheong Tong Motor
Works Sdn Bhd
Triumphal Motor Co. Sdn Bhd
Sunlight Engineering Work
Sdn Bhd
Hiab Sdn Bhd
TCIM Sdn Bhd
Keletrikan Motor Tong Lim
Sin Tong Hup Engineering Sdn
Bhd
Tractor Malaysia Sdn Bhd
Kian huat Enginering Uniboon Trading Sdn Bhd
& Agriculture
Suburban Properties Sdn Bhd
Supplier
Kuantan Trading Oil Mill Sdn
CCM Fertilizers Sdn Bhd
Bhd
Kien Hin Saw Services
Indah Agro sdn Bhd
Syarikat Logam Jaya
Sri jaya Hardware
Kedai Loong Hin
Sdn Bhd
Yi Cheng Machinery Avery Malaysia Sdn Bhd
ELS Tyre Services Sdn
Bhd
Behn Meyer & Co
(Malaysia) Sdn Bhd
Union Harvest
Marketing Sdn Bhd
JC Siow Weighing
System Sdn Bhd
C H Liew Engineering
Services
Klinik Yeo Sdn Bhd
Klinik Medic & Surgeri
E-Plus Stationery and
Office Supply
Zonelite Electrical Sdn
Bhd
Lit Tat Engineering Sdn
Bhd
(Co. No. 10871-T)
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Page 11 of 59
Carotino Sdn Bhd
Applied Agricultural
Resources Sdn Bhd
Laj Kejuruteraan Sdn Bhd
Agromate (M) Sdn Bhd
Sri Jaya Limestone Sdn Bhd
My Crop Sdn Bhd
Iron Ore Mine 1,
Kuantan
Malaco Mining Sdn Bhd
Wong Ah Dek
Construction
Iron Ore Mine 2,
Kuantan
Mega Building and
Construction Works Sdn Bhd
Eng Lee Sing Sdn Bhd
2. Local Community Head
Ketua Kampong
Bakapor
Ketua Kampong Orang Asli Kg
Pasal
3. Authorities
Jabatan Alam Sekitar
– Kuantan, Pahang
Jabatan Kesihatan Daerah
Rompin
Lembaga Minyat sawit
Malaysia, Kuantan
Pejabat Tenaga Kerja
Pekan, Pahang
Hospital Segamat
Jabatan Imegresen,
Kuantan, Pahang
Pertubuhan Keselamatan
Sosial (Perkeso),
Segamat
Pejabat Perhilitan, Rompin
Jabatan Kesihatan
dan Keselamatan
Pekerja (DOSH),
Kuantan
Pejabat Hutan Daerah, Rompin
Pejabat Perdagangan Dalam
Negeri, Segamat
Pejabat Daerah Rompin
Pejabat Haiwan Rompin
Kumpulan Wang
Simpanan Pekerja,
Segamat
Suruhanjaya Tenaga,
Kuantan
Jabatan Bekalan Elektrik
dan Gas, Kuantan
4. Non governmental organisation
WWF Malaysia
Malaysian Nature Society
Consumer
Association of
Penang (CAP)
Malaysia Croplife & Public
Health Association
Environmental
Management and
Research (Ensearch)
Environmental
Protection Society
Centre for Orang
Asli Concern
(COAC)
Sahabat Alam Malaysia
Tenaganita
Wetlands International
(Malaysia)
Regional Environment
Awareness Cameron Highland
(REACH)
Incorporated Society of
Planters (ISP)
Malaysia Red Crescent
Society
World Conservation
Society (WCS)
Womens Aid
Organisation
National Consumers
Complainst Centre
All Women Action Society
(AWAM)
(Co. No. 10871-T)
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Page 12 of 59
Carotino Sdn Bhd
U
7.
7.1
BACKGROUND INFORMATION OF CAROTINO CERTIFICATION UNIT
Introduction
Carotino oil palm estates subjected to the evaluation could be clearly divided into two
distinguished blocks. First block comprised of Asia Oil Palm Estate (AOPE), Pahang Oil Palm
(POP) and Maran Estate are located north of Srijaya town. This area is surrounded by other oil
palm estates or natural areas such as forest reserve or stateland forest. Also in the vicinity are
mining areas that involve total land clearing and subsequent mining operation.
The second block is the Hwa Li 1 and Hwa Li2 which is located about 100 km south of the first
block. Hwa Li 2 is located at the tri-state boundary (Negeri Sembilan, Johor and Pahang) while
Hwa Li 1 is further east bordering Hutan Simpan Lesong within Rompin District.
This field inspection that took place between 11 – 15 May 2009 covers all estates and the
Carotino mill.
Table 7.1 tabulates age profiles of each estate being evaluated.
Table 7.1: Age Profiles of Each Estate in 2009
Age category (year)
AOP (ha)
POP (ha)
Maran(ha)
Hwa Li 1 (ha) Hwa Li2 (ha)
Total (ha)
< 2.5
0
695.3
576.7
0
0
1,272.0
2.5 - 5
268.0
200.3
365.6
0
0
833.9
6 – 10
0
783.9
0
1,462.0
0
2,245.9
11 - 20
1,690.8
193.5
122.3
171.3
1,528.7
3706.6
21 - 25
0
0
0
0
0
0
> 25
154.5
140.6
912.4
455.4
0
1,662.9
Total cultivated
2,113.3
2,013.6
1,977.1
2,088.6
1,528.7
9,721.3
*Total not cultivated
27.5
127.1
163.7
73.2
130.5
522.1
* Total not cultivated includes areas set aside as nursery, football field, building and others, TNB line and roads.
7.2
Landscape view of the land use and HCV areas in the region around the estates.
The purpose of taking a landscape view is to better understand how the palm oil production
unit receives and impacts the environmental resources, goods and services of the region and so
target issues for the field inspection. To approach sustainability, the expectation is that the
estates and mills use these resources efficiently and equitably, impose minimal constraints on
natural biological processes, and make efficient and equitable use of the capacity of the local
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Page 13 of 59
Carotino Sdn Bhd
environment to attenuate their wastes – gas emissions to the air, effluent discharged to water
and solid waste disposed to the ground. In addition, the estates and mills are expected to be of
some benefit to the local economy and society.
Map 1: Land use at the landscape level around the Carotino estates. (Source Dept. Agriculture.)
Map 1 above, illustrates the land-use pattern surrounding the Carotino oil palm estates in
southern Pahang at 2002. North is at the top and the grid is metric. Since 2002 relatively little
land-use change would have taken place at the landscape level. The five component estates in
this assessment are in two groups. Asia Oil Palm Estate (AOP), Pahang Oil Palm Estate (POP)
and Maran Estate (ME) are in the north and Hwa Li 1 (HL1) and Hwa Li 2 Estate (HL2) to the
south. The landscape issue of interest for this assessment can be viewed through ‘high
conservation values’ (HCV) which concern: biological diversity (HCV 1, 2 & 3), natural
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Page 14 of 59
resource quality and availability (HCV4), as well as the use of land for economic benefits
(HCV5). Cultural value (HCV6) need to be viewed at a larger scale. Issues of concern
include:
• The large contiguous area of oil palm and its effect on ecological imbalance and crop pest
management (HCV2, 3 & 5);
• ‘biological corridors’ between the forest blocks adjacent to AOP, POP and ME (HCV1,2 &
3);
• The isolated lowland forest to east (HCV2 & 3), and rubber areas (HCV5) usually
associated with small cultivators to the west of HL2; and
• The Lesong Forest Reserve on 3 sides of HL1, which borders with Endau-Rompin National
Parks and is recognised as an area of high biodiversity (HCV1, 2, 3 & 4).
7.3
Land administration and settlement in the region.
Map 2 and Map 3 below shows the locality of the estates with regards to administration
districts. All estates are outside local authority areas except for HL 2 Estate which is within the
Majlis Daerah Bera area, created in 2000. HL 2 would be expected to have consulted with
Majlis Daerah Bera on the issues of current management concern for the local authority.
POP, AOP and ME are in the Mukim of Ulu Lepar in Kuantan District, HL2 in Bera in Bera
District, and HL1 in Keratong, Rompin Distirct. In the 11 year period between the 1980 and
1991 census, the populations in these districts were all growing at rates that exceeded the state
and national averages (see Table 1 below). This was the period when oilpalm estate
development was at its peak and supporting local population growth in these rural areas. The
average annual population growth then for Ulu Lepar was 14.1% compared to 2.7% for the
state and 2.6% for the country at the same time. The other districts where the estates are
situated also saw population growth exceeding the state and national averages. In the period
that followed, 1991 to 2000, the average annual population growth rate had declined to 1.9%
for the state and 1.5% for the country, with local growth rates exceeding state and national
averages in Ulu Lepar and Keratong, but not Bera (Table 7.2).
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Map 2: Local authority areas. (Source: Dept. Statistics.)
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Map 3: Location of Catotino Estates in respect to the Districts ( Source; Department of Statistics)
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Table 7.2: Population census data of the districts between 1980 - 2000 (Source Statistics Dept.)
Distict
Kuantan
Mukim
Ulu
Lepar
Rompin
Keratong
Bera
Bera
Pahang
Malaysia
1980
3,055
Census dates
1991
2000
Average annual
growth
80-91
91-2000
14,399
17,028
14.1%
1.9%
49,376
63,778
8.8%
2.8%
17,247
32,444
36,035
5.7%
1.2%
768,801
1,036,724
1,229,104
2.7%
1.9%
13,136,109
17,566,982
20,139,132
2.6%
1.5%
18,750
Census figures suggest that extraordinary population growth rates in the past which were
stimulated by estate development are now relatively stable. From a landscape perspective, it
would not be expected to see a competing local community demand for land in these areas.
The trend for Bera suggests local population is beginning to move away. Bera has an annual
growth rate lower than the state and national average. Since we have to assume that births and
deaths in the Mukim follow the national average, this decline is thus due to out-migration.
Since availability of local labour is an essential component for sustainability, this implies that
the estates will either continue to depend on immigrant labour from foreign sources or have to
improve their attractiveness to secure available labour from local sources.
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7.4
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Soil Suitability.
Map 4: Regional soils and drainage.(Source: Dept. of Agric)
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Map 4 above, overlays the site of the estates on a reconnaissance level soil survey map of the
region. Most of the soils on the estates are described as sedentary soils on undulating plains,
with some riverine soils in the lowest parts of the estates. From the information derived from
map 4, the estates appear to be located on: Class 2 soils – soils with one or more moderate
limitation, and Class 3 soils - soils with one serious limitation. These limitations included:
nutrient imbalance, gradient, soil texture and drainage. To ensure sustainable production, all
these limitations have to be addressed through block design, field preparation and continuous
maintenance.
The 2 northern estates (AOPE & POPE) all drain eastwards into the Sg. Lepar. This river has
built up mineral sediments and drowned valleys along its length. Similar situation exists for
HL2 which drains westwards into the Sg. Segamat and HL1 drains into the Sg. Rompin. The
lower reaches of these rivers would receive impacts on improper management and operation
within the estates. The concern would be for potential target human and non-human
populations as well as wetland ecosystems. It should be noted that one of the environmental
services provided by river is their capacity to attenuate and break down waste chemicals and
organic compounds. The sustainability of this kind of environmental services, which is shared
with other stakeholders, would be compromised if the local capacity for attenuation is not
managed and utilized proportionately.
7.5
Rainfall
Figure 1: Regional rainfall from January to November with two months interval in
between (Source Nat. Env. Agency, Sing.)
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The estates receive an ‘east coast’ rainfall pattern with a peak at the end of the year. Average
monthly rainfall for the region exceeds a nominal monthly value for evapo-transpiration of
110mm. This year experienced a dry period in February. It is expected that there would be
sufficient rainfalls to support sustainable production.
7.6
Topography, local site aspects and tracks of field inspection teams.
The topography of the AOP and POP estates are roughly shown in Map 5 and Map 6. The
dotted line shows the track taken by the audit team during the assessment. In general, the area
is flat with minimal sloppy areas particularly at the southwest of AOP.
Map 5: Topography and aspects around the AOP area
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AOP has been developed on both sides of the Sg. Remi that flows eastward into Sg Lepar.
Elevation range is between 50 and 200m with patches of steep slopes on the southwest
boundary and low-lying alluvial areas in the middle along the Sg.Remi and the Sg. Lepar on
the eastern boundary. Together with POP, the estate surrounds and enclave area occupied by
local community stakeholders. To the north and west are FELDA estates. To the south west
and south is a buffer of stateland forest that separates the estate form the Berkelah Forest
Reserve. The area across the Sg. Lepar to the North West is also stateland forest. Both these
areas have been repeatedly logged. (See aspects on state below).
Map 6: Topography and aspects around the POP area
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The topography in and around POP is similar to AOP. Since the Sg. Lepar meanders, areas
along the eastern boundary would be expected to be at risk from back flooding from the river,
and inundation of the low-lying areas of the estate. There has been repeated logging in the state
land areas to the south which may have reduced water quality in the streams entering the estate
from the south. The state land to the northeast was once proposed by the Jab PERHILITAN
(Wildlife Department) as the Ulu Lepar Wildlife Reserve, and was once known to hold a local
population of Sumatran Rhinoceros (HCV1). Until recently, this area was given effective
protection by the State Forest Department, but has since been logged. Recent wildlife surveys
suggest the Rhinos may now be locally extinct. However, other threatened wildlife will still
survive in the area. To the south, there has been extensive mining activity. The streams from
these mining areas enter the estate and may carry suspended sediments and minerals where
without proper mitigation measures, the impacts could reach far downstream..
Map 7: Topography and aspects around Maran Estate
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General topography and landuse surrounding Maran Estate is show in Map 7. Maran Estate is
generally low-lying with streams from the south and west flowing through the estate to the
Sg.Lepar in the east. To the west are limestone hills protected within the Berkelah Forest
Reserve. Maran Estate does not share a boundary with the forest reserve, but is separated by a
narrow buffer of state land. To the north is mining activity on state land. Since streams flow
into the estate from this area of state land, there is the same concern for quality of
environmental controls at the mine. To the west, the state land forest in the flat area up to the
limestone hill has been cleared. The Sg. Berkapur, which flows through the estate, enters the
adjacent Ladang Sekilau, flowing past their housing areas and onto Kg. Paya Rambutan. To
the east, the estate boundary includes an ox-bow lake now separated from the Sg.Lepar. This
area has been identified by stakeholders as a significant wetlands area (HCV3).
Map 8: Topography and aspects around Hwa Li 1
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As shown in Map 8, Hwa Li 1 Estate is bordered by Ladang Suburban to the west, and
surrounded on the other 3 sides by the Lesong Forest Reserve. The parts of the reserve that are
adjacent to the estate have been gazetted as water catchments, which under current forestry
management practices, are not logged. Effectively, the estate is surrounded on 3 sides by an
HCV1 protected area. Flowing through the estate from east to west is the Sg. Jekatih that flows
into a neighbouring oil palm Suburban Estate. Main access to the estate is from the southwest
corner. This road passes through state land forest, but does not appear to pass through any area
of forest reserve.
Hwa Li 2 (Map 9) is located at the tri state boundary of Pahang, Negri Sembilan and Johor).
The western boundary of the estate is the Sg. Palong which also forms as State boundary
between Pahang and Negeri Sembilan.
Map 9: Aspects and topography around Hwa Li 2 Estate
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The river itself is outside the estate, and beyond estate management control. This separates the
estate from the FELDA Tanah Palong Lapan in Negri and Kg. Jeram Panjang to the south.
There is a land boundary along the south with FELDA Palong Timur. To the north is an Orang
Asli area of Kg.Pasal. The map of the Orang Asli area was provided by the JHEOA through
the State Forest Dept. It is drawn at a small scale and though this is show an overlap with parts
of the estate, this is understood to be a map artifact and there is no actual boundary dispute.
Since the FELDA settlers are a managed economic community, any impact to the local
community from the estate would be minimal. The nearest community that could be an
important stakeholder as far as the estate management is concern is the nearby Kg.Pasal, an
Orang Asli settlement. To the north east, there is a buffer of state land on a relatively steep
slope that separates the estate from the Bukit Kerisik Forest Reserve. Despite the slope of the
area, this is classed as ‘production’ forest. Streams from this area enter the estate.
8.
GENERAL FINDINGS OF FIELD EVALUATION
An overview is given here of the general findings from the field inspection. For details, see the
discussion on the findings described under each RSPO criteria below.
Information on risk aspects at the mill is posted on the mill’s notice board and staff and visitors
are provided with suitable PPE required. As part of guidance to workers to avoid dangerous
areas, pathways within the mill were marked. The heavy traffic areas for the capstan and crane
were marked on the ground. Fire extinguishers were provided at strategic locations within the
mill (Photo 1). Copies of SOPs are made available at each workstation with support
information depending on the risk, for example, CPR response to electrocution. Based on
records, staff at the mill have been provided with the awareness raising and training on various
aspects of OSH. Areas of high risk in term of noise is mapped accordingly (Photo 2)
Photo 2: Fire extinguishers are placed
at strategic locations.
Photo 1: map showing location of high risk areas within the mill
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The feeder ramp is ribbed to catch dirt, which
illustrates that though this is not a new mill, there
has been an on-going effort to improve product
quality with new facilities. Average OER of 20.6
% is acceptable considering the age of the mill.
Equipment selection is appropriate for the scale of
operations, and the operations and maintenance
practices were observed to be at or above industry
norms.
Fibre and shell were automatically fed to the
boiler, controlled by steam pressure sensors. This Photo 6:
3: EFB feeder ramp
regulates the amount of fuel consumed, thus
reduces the unnecessary burning that could generate excessive CO and CO2 emission (Photo 4).
Ideally, fibre fuel would be stored further away from the boilers, but with minimal back-flames
from reduction burning, fire risk may be low.
The mill is currently incinerating EFB (with approval from DOE) and exporting the ash to the
field. The incinerator appears to be working efficiently, with minimal nuisance of fly-ash.
However, unless the receiving estate can justify the use of ash, the exercise only serves to reduce
volume and transport costs for a waste product, while contributing to GHG.
Based on observation and statistical information of water quality monitoring, POME treatment
system in place was found effective in reducing suspended matter, COD and BOD (Photo 5).
Photo 7: Clear water at the final treatment pond
Photo 5:
4: Stack emission at the mill
At the time of field evaluation, a final treatment plant for the POME was being constructed.
This would use mechanical and biological filters on the effluent prior to land application. The
new facility was reported to be capable of reducing BOD to below 50 PPM.
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In the estates, some of the boundary marker stones have been recovered and areas where the
original planting crossed estate boundary and encroached into river reserves, have been
corrected. But this exercise has not been completed for all estates. At Hwa Li 1 which has a
common boundary with the Lesong Forest Reserve (Photo 6), the boundary has no official
boundary stones place by the Land Survey and Mapping Department (JUPEM).
It should also be noted that this particular
boundary is protected by both dry moat
and electric fence to control elephants
coming in from the surrounding forests.
Despite non-lethal attempts to control,
elephant damage has created some locally
significant production losses.
The
elephant is considered endangered, but not
critically so is not defined as an HCV1
species. It is reported that discussion has
been made with the Wildlife Department
on the option for translocating individual
problem elephants away from the Lesong
Photo 8: Clear demarcation of forest reserve boundary at Hwa FR area. This discussion should be shared
Li1 Estate
with other stakeholders with a general
interest in wildlife, or expertise in
elephants. This will avoid negative stakeholder response and better ensure a long-term solution
that creates the minimal negative impact on endangered species is reached.
Other aspects of Integrated Pest Management (IPM) are being addressed through field
monitoring programmes, promotion of beneficial plants for the predators of pests, provision of
nest boxes for barn owls, as well as supplementary spraying where considered necessary. In
common with most east coast estates, problems with leaf-eating pests are relatively minor. As
elephants are attracted to estates from the surrounding forests, so too are predators of leaf-eating
insects. But as the forest patches on the state land surrounding the estates are cleared, this
current benefit provided by the presence of natural forest may not be there for long. In the near
future, the estates may need to prepare to be more self-reliant for IPM controls by creating their
own habitat for predators of leaf and fruit pests.
Where there are large rivers flowing through or
along the boundary of the estates, these rivers
have been marked with notices to remind to staff
to avoid applying agrochemicals to the area
involved (Photo 7). Where replanting has been
recently undertaken, these areas are not planted.
Instead, natural vegetation is encouraged to
rehabilitate the riverine buffer.
Photo 9: Riverbuffer is identified for protection
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It was observed that there are river banks that have been damaged and subjected to erosion
where the estate management is actively rehabilitating through replanting with native riverine
vegetation primarily for stabilising the soils, as well as to attract wildlife (Photo 8). This attempt
at rehabilitating the river banks will serve multiple purposes and potentially contributing towards
a functional ‘biological corridor’ along rivers that cross the estate as well as providing potential
habitat space for the predators of crop pests.
Steeper areas are terraced and the estates build
‘smiling’ terraces to help divert silt eroded by runoff water back on to the terraces. But the amount
of ‘back cutting’ on the terraces may not be
sufficient for the erosion risk of the local soils in
the area as many of the terraces appear to have
reached their maximum capacity to trap
sediments. Semi-detailed soil mapping has been
done but this may need improvement so that it
could be used to differentiate the soil types for
their conservation management requirements. An
additional concern is that local steep areas have
been cleared and planted in ravines where future
Photo 10: Planting on riverbank with native species
soil conservation may prove challenging. Thus,
further improvement may need to be made to coordinate field information with planning as a tool
for guiding and supervising the contractors during replanting. It should be noted that as a general
rule, ground cover in replanting areas was well established. Noted also were remnants of natural
vegetation which provide a potential habitat service for birds that predate on rats.
It was also observed that old palm trunks and fronds
have been cleared from the replanted sites. To
avoid burning, the old palms are pushed over,
mechanically chipped and then buried to reduce risk
of breeding rhinoceros beetles (Photo 9).
In localised areas, low levels of erosion from slopes
and accumulation of sediments in stream beds is a
chronic problem (Photo 10). This needs to be
addressed with management techniques that suit
local soil conditions. At present, there is no
monitoring for the sources and rate of soil loss
t
Photo
11: Old palms are felled and the trunks are
chipped
and left to rot onsite
h
r
ough erosion.
It is not known which soil types and areas are
most at risk and which field practices
contribute to soil erosion, the associated
nutrient loss and eutrophication of streams.
Photo 12: Without proper measures, top soil will be eroded
down the slope
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In areas with significant slopes, fronds may not always be stacked along contours (Photo 11). It
is understood, that frond stacking direction is sometimes alternated as a response to soil erosion
control; however collapsing individual platforms, exposed roots bases and leaning palms suggest
that this approach may not be sufficient to control erosion.
Surface run-off water carries sediments and
nutrients into water reducing water quality. Water
quality is also impacted by leachates from improper
waste disposal (Photo 12).
Photo 13: Fronds were stacked along the contours
as part of measures to minimise erosion
Current waste disposal management does not have
an adequate set of SOPs for their construction, Photo 14: Improper disposal of boiler ash
operations and closure. Nor are there guidelines
for the selection of waste disposal sites. Waste management is a public health issues as well as
an environmental management issue.
The workers were observed to use adequate PPEs
appropriate to their general duties (Photo 13). In general,
workers appear to be comfortable with the equipment issued
and know how to use it. It was noted that some of the
goggles in use were prone to ‘fogging’ and the use of dust
masks may be of limited benefit to the sprayers. This
indicates there is still room for discussion among staff and
workers on opportunities for further improvement through
existing discussion mechanisms. For sprayers, their PPE is
washed and dried after use. Water is available in the mixing
area for emergency body wash. Following procedures,
chemical containers are rinsed as required and the empty
containers stored pending final disposal.
Photo 15: Sprayers were observed with
proper apron, glove, face mask and
rubber boots
In general, estate workers appeared to understand their SOPs
and are consistent in their practice. OSH requirements were
observed by the workers.
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In the more accessible areas, the field were well maintained with clean circles and weeds kept
under control. But some of the more remote areas showed signs of poor field supervision and a
lower quality of work. This can be taken as a symptom of the difficulties of constantly
maintaining sufficient workers and motivating those workers on hand to perform to a consistent
quality.
Lower standards for fertiliser application, delayed VOP control and maintenance of circles and
ineffective protection of eroding slopes are among the indicators that suggest maintaining
sufficient capacity among workers may be a future issue that could have an impact on
sustainability.
Photo 14: Mechanised harvester used in some estates
as part of effort to minimise demand of manpower
Photo 15: Drip irrigation system used was proven to
safe water and control fertiliser application in the
nursery
To address future sustainability of workers, the estates are looking towards mechanisation of
some of the operation. Mechanised collection of FFB for harvesting has been implemented to
increase the efficiency of the harvesting teams. Illustrated in the picture above is the machine
that can be used in on different soil conditions (Photo 14).
Carotino is conducting trials with new planting material. Though nursery practices could be
improved – lining and use of larger bags, clonal planting material offers the promise of improved
fruit and nut quality. The company use individual drip irrigation in the nursery to ensure optimal
water and nutrients feed for the individual seedlings as well as making savings on water use and
pumping effort (Photo 15).
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A summary of the impressions gained from the field visit are given below, with further details
given in the discussion on the individual criteria of the MYNI. The impression gained is that the
company has identified objectives and implemented work practices that indicate it wished to
move towards sustainability. There appears to be a willingness to take responsibility for their
environmental foot print, and develop their capacity to address the RSPO principles for
sustainability. The indicators that support this opinion include:
The estates and mill appear to have a history of effective management and field evidence
suggest they have not experienced periods of neglect that could cause chronic impact to
long term sustainability. Fields, even when old are productive, and missing points appear
to be in areas damaged by elephants or at risk of flooding. A ‘zero burning’ policy is in
place and being supported through management practices during replanting. IPM has been
accepted as a practice, with effort to reduce chemical use.
The mill, though not new, appears to perform efficiently, and comfortably meet
environmental and safety standards. It appears to be maintained by a well motivated and
competent team. Continuous investment in mill facilities has helped it move towards
compliance with standards expected by RSPO.
SOPs are documented, accessible and training provided. Training seems effective but it is
recognised that there are still local lapses in field performance. There are systematic
mechanisms to discuss OSH and work matters for each level of operations including
workers.
The company is making efforts to ensure future crop quality through current trials with
clonal material, and address efficient use of harvesters through mechanisation trials.
Water quality monitoring for major rivers is being done and riverine restoration is taking
place along those major rivers. Water management skills are adequate for local conditions.
And at replanting, areas along water courses and ravines have been conserved.
The areas identified as weaknesses where improvement is required include:
9.
Management of waste – domestic as well as wastes from processes. Currently some wastes
from estate operations are being stored, since there is no prescription for final disposal.
Soil erosion is not monitored and capacity building for prevention and remediation is still
required.
Further growth to monitor field performance and work quality is needed, and improve
understanding among workers for work quality at all levels of estate practice; but it is
understood that under the current employment model for limited-term foreign labour, this
may not be practical.
And in anticipation of less benign future conditions for IPM, capacity to monitor and
manage the ecological condition of the estates will need further investment.
EVALUATION RESULTS
Results of the evaluation are tabulated below. The findings made under each criterion are
discussed where non compliances raised are raised against individual indicator of the MYNI
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Carotino Sdn Bhd
2008. Classification of the non Compliance to the RSPO requirement is categorised as
tabulated in Table 9.1 below.
Table 9.1: Criterion of Non Compliance and Explanation
Level of Non Compliance
Minor CAR
Major CAR
9.1
Explanation
The management system applied complies with parts of the
requirement or the system was inconsistently implemented.
Improvements are required.
Minor non compliance to the stated requirement
Inconsistencies in documentation and implementation
Will not prohibit recommendation for certification
The management system failed to comply with the
requirement or the written policy, procedures etc were not
implemented.
Major non conformance resulting in breakdown of the
whole system
Major failure in documentation and implementation
Will prohibit recommendation for certification
Findings related to the general MYNI 2008
Summary of the assessment findings under each criteria were presented to the company
management at a closing meeting held on 15 May 2009. Tabulated below are detailed
findings that described the compliance and non compliances (raised as CAR) under each
criterion.
PPR
RIIN
NC
CIIPPLLEE 11::
C
Coom
mm
miittm
meenntt ttoo ttrraannssppaarreennccyy
Criterion 1.1
Oil palm growers and millers provide adequate information to other stakeholders on
environmental, social and legal issues relevant to RSPO Criteria, in appropriate
languages & forms to allow for effective participation on decision making.
Carotino Sdn Bhd has a website for promotion of its products. The website also contain brief
information about the company’s corporate structure, its policy and management objectives.
Summary of management plan available on website that include social and environmental
issues
“Guidelines on mechanism for information requests by stakeholders” have been
documented. Procedures for handling stakeholders are available. The company maintain a
(Co. No. 10871-T)
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Carotino Sdn Bhd
file on stakeholder comments/requests and has established a system to record the
comments/requests and actions taken to address it. The available stakeholder list contains
the name, address and contact number of individuals and agencies relevant to the mill and
estates operation.
Carotino mill located in Srijaya only sourcing FFB from own estates that currently being
evaluated. The mill does not purchase FFB from and does not deal with out-growers or
smallholders. In fact, some of the FFB generated by Hwa Li 2 estate are being sold to other
mill due to surplus at the Carotino mill.
Criterion 1.2
Management documents are publicly available, except where this is prevented by
commercial confidentiality or where disclosure of information would result in
negative environmental or social outcomes.
It was observed during the assessment that the company has clear land titles on all the land /
estates involved. Standard operation procedures are also available. Management plan
summarizing the company policies and good management practices are now publicly
available on the website (www.carotino.com). Policies, SOPs, work instructions etc are
pasted on notice boards at the estate and mill for workers and public view.
PPR
RIIN
NC
CIIPPLLEE 22::
C
Coom
mpplliiaannccee w
wiitthh aapppplliiccaabbllee llaaw
wss aanndd rreegguullaattiioonn
Criterion 2.1
There is compliance with all applicable local, national and ratified international laws
and regulations.
List and copies of legal documents and international treaties and agreements are available
Current valid licenses and permits are framed and displayed in the mill and estate offices
Complete list of legislation and regulation relevant to oil palm plantation management and
mill operation is available. At the time of assessment, it was observed that copies of relevant
legal documents are available. Mechanism to track changes in legal requirements has been
developed and the personnel responsible for monitoring compliance to laws & regulations
are formally identified in the guideline.
It was observed that the company have the necessary renewable permits pertaining to crop
production and milling which are displayed in the form of certificates in mill and estate
offices. Legal requirements for machinery maintenance and power generation have also
been complied with where records of inspection and communication with relevant
authorities are maintained.
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Criterion 2.2
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The right to use the land can be demonstrated, and is not legitimately contested by
local communities with demonstrable rights.
There are clear land tenureship documents for all estates under the group, as tabulated
below.
•
•
•
•
•
Hwa Li Division 1 – under 13 different titles (or PT numbers) which are lands under
the ownership of Syarikat Keratong Sdn Bhd, a wholly owned company under JC
Chang Group.
Hwa Li Division 2 – a single title PT 2389 HSD 2850 owned by Carotino Sdn Bhd
Maran Estates – under 6 titles belonging to Richley Corporation Sdn Bhd, which is
under Asia Oil Palm Sdn Bhd
Asia Oil Palm Estate – under 6 land titles owned by Asia Oil Palm Sdn Bhd, a
company under JC Chang Group
Pahang Oil Palm Estate – land belongs to Pahang Enterprise Sdn Bhd, a company
under JC Chang Group
Current activities on the land complied with legal landownership title where it was
specifically spelt out that the land is to be planted with oil palm.
The audit team observed adequate physical demarcation on the ground (i.e. boundary
markers) but apart from Hwa Li 2 and Maran Estate, other estates are without boundary
stones (Minor CAR-01). It was however observed that the estate boundaries are clearly
marked where drains were dug. Electric fencing was erected along boundaries bordering
natural areas such as Forest Reserve. Active communication in the forms of letters with the
land surveyor and land office were also observed showing commitment of the management
to formally survey and demarcate the estate boundaries.
Criterion 2.3
Use of the land for oil palm does not diminish the legal rights, or customary rights,
of other users, without their free, prior and informed consent.
All plantations were established long time ago (in 1960s/70s) and they did not diminish the
legal rights, or customary rights, of other users in the vicinity at the time of planting.
The lands planted were all alienated lands belong to a specific owner prior to planting. There
were no records to suggest that the use of the land for oil palm planting by Carotino
diminish the legal or customary rights of communities living in the vicinity of the estates.
Nevertheless, the surrounding communities are allowed access to plantation roads to
commute from one village to another or for their daily needs. The following communities
are within the vicinity of the Carotino estates:
•
Orang Asli in Kg Pasal (at the fringe of Hwa Li 2),
•
Kg Tomsel Anak Sungai Bekapor and Kg Ulu Sungai Bekapor (outside Maran
Estate)
•
Malay community (50 households in Kg. Mengapur at the fringe of Maran Estate)
Clear physical boundary demarcation with legal land title was observed during site visits.
There were no dispute/claims by the neighbours on the estate’s land.
(Co. No. 10871-T)
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Page 35 of 59
Carotino Sdn Bhd
PPR
RIIN
NC
CIIPPLLEE 33::
C
Coom
mm
miittm
meenntt ttoo lloonngg tteerrm
m eeccoonnoom
miicc aanndd ffiinnaanncciiaall vviiaabbiilliittyy
Criterion 3.1
There is an implemented management plan that aims to achieve long-term
economic and financial viability.
Annual budgets for the mill and estate operations are available. Budgets included limited
(less than 0.1%) allocations for social & environmental/ biodiversity conservation
programme. This relatively low percentage of allocation is due to accounting system used.
If budget for other activities (currently placed as other development expenditure) related to
social & environmental/biodiversity conservation is taken into consideration, the percentage
will be higher.
The annual plan in the form of annual budget determined by the Headquarters for each
estate is available. The budget include allocation for the operation, estimate on expenses for
harvesting, social programmes as well as possible environmental safeguards. The annual
plan combined with the maps indicating the boundary, planting blocks, topography,
drainage, access roads and infrastructures within the estate forms the plantation
management plan for the whole certification unit is available.
Crop production is monitored on a block by block basis for individual estates and a
feedback mechanism is in place to capture the crop production trends and used to support
plan for continuous improvement.
Through visits by the Plantation Controller and Plantation Adviser, the internal monitoring
was carried out where ‘plantation visiting report’ is produced. The report focused on
performance of the estate compare to target and make recommendation for improvement.
Replanting programme for all the estates is available as follows:
Estate
2007
2008
2009
2010
Maran
Asia
Hwa Li 1
Hwa Li 2
Pahang
Total
0
0
0
0
304.3
304.3
197.0
0
0
0
191.0
288.0
186.3
0
0
0
200.00
386.3
193.4
0
0
0
0
193.4
(Co. No. 10871-T)
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Carotino Sdn Bhd
PPR
RIIN
NC
CIIPPLLEE 44::
U
Ussee ooff aapppprroopprriiaattee bbeesstt pprraaccttiicceess bbyy ggrroow
weerrss aanndd m
miillleerrss::
Criterion 4.1
Operating procedures are appropriately documented and consistently implemented
and monitored
A set of SOP has been drafted with copies posted at work stations and muster areas. There is
a register of the SOPs and notes on their current status viewed in the “Policy File”. SOPs
were viewed in English and Bahasa Malaysia an example of which would be the “Panduan
dan Operasi Keselamatan untuk Mencegas Bateri”. It should be noted that the workforce
include nationals from Indonesia, and the Indian sub-continent. SOP are not comprehensive,
but where the work subject is concerned with the operation of machinery, powered
equipment, handling of agro-chemicals, use of PPE, issues concerning OSH, activities
regulated by laws, as well as every-day crop handling and estate maintenance, the SOPs
have been drafted. In addition, documented procedures also include numerous guidelines
(see 4.3.1) and works instructions for specific activities. These are considered to be
appropriate documentation for the present, with guidelines being sufficient to provide the
objectives for work tasks and the flexibility to be adapted for individual field conditions.
The current strength is that SOP is in place and being effectively transmitted (see 4.6.4, 4.8.1)
and practiced. The weaknesses relevant to operating procedures relates to a lack of a
systematic monitoring mechanism that is a part of a system for making continuous
improvement In general, systematic monitoring on the suitability of the SOP or guidelines
themselves is not in place to allow further improvements in the documentation system
(Minor CAR-02). Work quality itself is monitored within each working circle, with further
monitoring through the Agronomic and Plantation reports. These reports generally identify
remedial activities, when needed, for the activities observed.
Criterion 4.2
Practices maintain soil fertility at, or where possible improve soil fertility to a level
that ensures optimal and sustained yield.
The company practiced zero burning and applied EFB, boiler ash and POME into the field
and evidence of monitoring where it is applied. At the time of the assessment, the company
is putting in place a new treatment plant and piping system to allow POME field application
to irrigate wider areas.
Annual fertiliser recommendation is stated in the budget with the appropriate allocation.
Application progress is recorded by date and block and mentioned in the half-yearly review
Examples include: “Progress Report May 08 – Nov 08”.
Annual leaf sampling and sampling for soil nutrients have been undertaken with most recent
records viewed.
Currently, no POME is being applied to the field while new pipes are being laid to the fields
and further investment made to reduce BOD through POME treatment. EFB and ash
application are planned by blocks, and monitored by direct supervision of work. Ground
cover is established in replanting areas to protect soil nutrients from excessive leaching by
rain water run-off, and soft weeds are tolerated in the fields for the same beneficial effect.
There is Zero-burning policy in place and field observations indicate compliance is
consistent. The practice in replanting areas is to chip the palm stems, and bury them in the
fields to conserve organic matter and nutrients in situ while reducing risk of breeding
rhinoceros beetles.
(Co. No. 10871-T)
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Carotino Sdn Bhd
The company applied methods to minimise soil erosion and maintaining soil fertility (e.g.
‘smiling’ terraces and cover crop for replanting). Plantation Visit Report prepared by
Plantation Adviser providing recommendation on management improvement is available.
Criterion 4.3
Practices minimise and control erosion and degradation of soils.
Field observations generally indicate that soil mass is being effectively conserved by the
current management practices. Currently, blocks scheduled for new planting are surveyed
prior to work, slope inclination measured, areas requiring terraces mapped and areas
considered too steep for planting identified. SOPs are in place for terracing and other
practices to conserve soil mass from erosion. These include ‘smiling terraces’ where run-off
from roads is diverted back to the terraces, silt pits, etc.
There are steep areas exceeding 25o within the estates where old palms have been felled and
the area either been replanted or set aside without being planted. Such areas will probably
require management practices beyond those normally employed on less steeper slopes. The
company has developed a document ‘Guidelines on Managing Steep Areas Planted with Oil
Palms’ to guide management of such areas. These areas of high erosion risk are essentially
HCV4 areas and need conservation management. Maps that identify soil management classes
– soil types and slope classes were viewed for Hwa Li 1 and are reported for each estate. But
these maps have not been revised to identify the locations and measure the extent of fragile
soils.
To avoid bare ground, field practices include planting ground cover, and encouraging noncompetitive soft weeds.
An annual road maintenance programme is routinely prepared, and a five-year road
resurfacing programme in place that follows the replanting schedules where applicable.
There is no peat in any of the Carotino estates. All the estates are on dry undulating lowland
area.
Among the strengths is that ‘Best Management Practices’ mentioned in RSPO guidance for
fragile soils are all consistently applied with one exception – contour stacking. It is practiced,
but not for all slopes including slopes at risk of erosion along harvester paths. This
inconsistent practice suggest two possible weaknesses: the lack of a systematic and objective
approach to monitoring the occurrence and rate of soil erosion’; and a lack of a systematic
management decision making process that can evaluates between two apparently conflicting
objectives of soil conservation and the alignment of harvester paths.
(Co. No. 10871-T)
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Carotino Sdn Bhd
Criterion 4.4
Page 38 of 59
Practices maintain the quality and availability of surface and ground water
The major water courses including the main streams that flow through the estates are
managed and monitored for their conservation. A buffer zone on both banks has been
identified, mapped and marked in the field prior to replanting. SOPs for the management of
these areas prohibit the use of agrochemicals, with field workers trained appropriately. In
POPE, the buffer zones have in places been planted with native species including figs- Ficus
fistulosa, and Petai Jawa -Ipil-ipil. Areas in ravines with seasonal streams have also been
identified for supporting management. However, not all areas waiting replanting have had
their permanent streams identified and mapped for riparian conservation nor the smaller
streams occur in areas that have been replanted prior to the current SOP, have been
considered for remedial attention. (Minor CAR -03) The issue seems to be a lack of clear
working definition of a water course. Guidelines produced by state authorities are silent on
streams less than 3 m width, but smaller streams still need to be protected to support the
RSPO standard.
Impoundments have been constructed across streams arising within the estate, but there are no
dams or weirs across major waterways or waterways that pass through the estates.
Water quality sampling is made in major streams that pass through the estate.
Daily entries of rainfall are made into the “Rainfall Record” book and the summarised
monthly data since 2001 are available.
At the mill, water usage is monitored using calibrated meters after filtration. There is no
metering of the raw in-coming water. The amount of water consumed at the mill is reported
as tonnes per tonnes FFB processed. The mill also supplies the estate and domestic users at
the Pahang Oil Palm Estate (POPE).
Criterion 4.5
Pests, diseases, weeds and invasive introduced species are effectively managed
using appropriate Integrated Pest Management (IPM) techniques.
The “Guidelines on Integrated Pest and Disease Management of Oil Palm” is the primary
document for the IPM system. This covers subject areas that include: monitoring, chemical
controls, calibration of spraying equipment, management of leaf-eating caterpillars, rats,
ganoderma, management for barn owls, etc.
The extent of IPM implementation is monitored and the results recorded include: the census
on Barn Owl occupation of nests and breeding status; pesticide usage; progress for planting
species beneficial to the predators of pests; monitoring the use of pesticides; recording the
use of, and application sites for rat bait; monitoring pest damage to crop in the field.
Included in IPM resources is the use of non-lethal trenches and electric fences to dissuade
intrusion into the estate by elephants.
The field data collection for monitoring the
incidence and severity of pest events has been recently standardised using common data entry
forms.
A record is maintained of the amounts, dates and blocks where pesticides have been applied.
This includes the use of rat bait; Chlorpyrifos for termites, Cypermethrin for rhinoceros
beetles, Armitraz for red spider mites, etc.
Pesticide usage is reported in the “Monitoring of Pesticide Usage” in units per tonne FFB and
per tonne CPO produced. This is updated every 3 months. In the period July – September
08, the rate was 0.15 gm per tonne CPO and between January – March 09 the rate was 0.14
gm per tonne CPO. There are no small holders or growers that require IPM training.
The company demonstrates its strengths by pro-actively seeking opportunities to reduce the
(Co. No. 10871-T)
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Carotino Sdn Bhd
Page 39 of 59
use of chemicals – options to use biological controls to control rhinoceros beetles population.
A possible weakness could include the lack of data, analysis and mapping of sub-critical
incidences of pest damage to monitor and prepare for potential ‘hot spots’ for future pest
problems. Essentially the estates have a deterministic approach to IPM that substitutes the
prophylactic use of chemicals with biological or physical means, and reacting pest damage
exceeds critical thresholds. Another area of potential weakness involves stakeholder
consultation. Since the source of potential pests include neighbouring land, consultation with
the stakeholders to integrate local IPM effort concerned could be beneficial. Concerning the
low frequency but persistent intrusion by elephants, the Jabatan PERHILITAN -the agency
responsible for wildlife management, has been consulted but not NGOs who may have an
interest in wildlife conservation.
Criterion 4.6
Agrochemicals are used in a way that does not endanger health or the environment.
There is no prophylactic use of pesticides, except in specific situations identified the
national Best Practices guidelines. Where agrochemicals are used that are
categorised as World Health Organisation Type 1A or 1B, or are listed by the
Stockholm or Rotterdam Conventions, growers are actively seeking to identify
alternatives, and this is documented.
A written justification for agrochemical use can be seen in “Justification for: Weedicide
usage; insecticide/rodenticide usage”.
The chemicals listed for use by the estates are registered under the Pesticides Act 1974 and
are referred to in the Chemical Health Risk Assessment (CHRA) with the exception of
‘Pursuit 50A’. It was reported that ‘Pursuit 50A’ was not currently in use by the estates. The
miss-match of lists suggests that the inadequate implementation of the procedure for the
listing of chemicals and the identification of their risks. (Observation).
Storage of chemicals was observed to be consistently in compliance with the Occupation
Safety and Health Act 1974.
Information on the usage and hazards of chemicals was sourced from the suppliers and
translated into Bahasa Malaysia, and displayed at the workstation – chemical store. This
information has been explained to the workers concerned by the supervising staff for the
working level, and they in turn were trained by the estate management. A record for training
for the use of ‘Racun’ was viewed for 27/04/09 with a follow-up training exercise on
05/05/09. Attendance records and training materials were available.
The annual medical surveillance is carried out in compliance with “Guidelines on medical
surveillance” DOSH, with reports by the responsible medical officer is available.
No women are currently working as sprayers, and no WHO Type 1 chemicals are stored or
used by the estate. The last bottle in stock was a liter of ‘Cobra’ - a 1b chemical, which has
been returned to the supplier. No spraying from aircraft is practiced and there has been no
request yet for CPO testing by purchasers.
The current book that records pesticide use has entries that go back to 01/11/07. The record
identifies the active ingredients, blocks sprayed, amounts applied and any follow up
application.
The strength of the estates is that they have the will and resources to take a responsible
approach to the use of chemicals. The only possible weakness maybe that the system that
would begin with the register of aspects of estate activities and the potential effects and
impacts (see 5.1) is not well documented. This register should be related to a potential list of
(Co. No. 10871-T)
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Carotino Sdn Bhd
Page 40 of 59
chemicals that could be used and the CHRA for those chemicals and implications for OSH.
All these should be subjected to periodic reviews and updating.
Criterion 4.7
An occupational health and safety plan is documented effectively communicated and
implemented.
Health and Safety Policy and Prosedur Bekerja dengan Selamat are available. A health and
safety committee with membership from the management and workers is formed at the mill
and estate level.
Carotino Sdn Bhd has adequately documented the occupational health and safety plan, which
includes a health and safety policy, work procedures, training, and monitoring system. The
implementation of health and safety policy and procedures are considered adequate. Accident
records are adequately maintained.
It was evident that the mill has taken additional step to form an emergency response team.
Monthly accidents records are compiled and submitted to Jabatan Kesihatan & Keselamatan
Pekerjaan (JKKP) Pahang. Of the 70 mill workers, 35 are Malaysians and have SOCSO
while the 40 foreign workers are covered under Foreign Workers Compensation Scheme
Policy, as per the Workmen Compensation Act 1952 and Workmen’s Compensation
(Amendment) Act 1976, which includes repatriation expenses and personal accident coverage
(accidental death, permanent total disablement, temporary disablement and medical
expenses).
In all estates and mill site, sign boards on health and safety are displayed at appropriate places
such as main entrance, management office, workshop area, along main road and workers’
quarters.
Workers have been adequately trained in safe working practices and PPE supplied for all
workers, both in the estates and mills. There is a daily briefing by the assistant manager
during the morning muster call for workers prior to commencing work, during which workers
are reminded of OSH requirements and their PPE checked, to reduce consumption of water
and power; and raise awareness to workers on RSPO and matters related to their welfares
(such as levy increase, cleanliness). Besides, small groups based activity (for harvesters,
sprayers, manuring workers, drivers and general workers) discussions are also held from time
to time. Records on muster announcement are available. The workers are also tested on their
knowledge on RSPO, safety and health measures to be taken from time to time.
In Hwa Li1, Hwa Li 2, Pahang Oil Palm Estate and Asia Oil Palm Estate, discussion with
workers indicated that they have better understanding on RSPO, especially on health & safety
and cleanliness of the environment.
Field visits in the estates showed that workers wore PPE while performing tasks such as fruit
harvesting, spraying and manuring. In addition, all “mandors” are given first aid kit before
daily work commencement.
The estate management has also increased their annual budget on OSHA PPE. In Pahang Oil
Palm Estate, the budget allocated for this item increased from RM5, 000 (2007/2008) to
RM8, 000 (2008/2009).
The “Safety and Health Plan” (SHP) document was viewed. This includes a policy on the
health and safety which is filed together with other policies available for public viewing. A
safety and health risk assessment has been carried out and is documented. There is an
awareness and training programme which involves safe working practices, precautions related
to the equipment employed and the use of PPE. The workers do a health & safety self-----------------------------------------------------------------------------------------------------------------------------------------------------------------SGS (Malaysia) Sdn. Bhd
(Co. No. 10871-T)
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Carotino Sdn Bhd
evaluation after each training session. PPEs are issued to workers, but there is no evidence to
link the PPE issued to a hazard assessment for the activity (Observation).
The SHP identified the persons responsible for OSH in the estate and OSH meeting records
were viewed in the Jabatan Keselamatan dan Kesihatan Perkerja (JKKP) meeting file. The
SHP discusses accident and emergency procedures and these have been presented to staff in
training sessions. Workers are given training in the use of First Aid and First Aid boxes are
provided for each work station and to work supervisors in the field.
An accident investigation file is maintained with completed “Borang Permeriksaan
Kemalangan, - Laporan Kemalangan”. The JKKP have a form to record accident and
chemical poisoning. The LTA records are maintained with the current records going back to
Feb 2008. Data is summarized as: 1) fatality rate, 2) incident rate, 3) frequency rate, 4)
severity rate.
All workers are covered by insurance where the relevant insurance policy was observed
“Foreign workers compensation scheme policy. No: xxxxxxx). Local staffs are covered by
SOCSO where up to date receipt of payment is available. In addition, the local staffs are also
covered by insurance but the details of the insurance policy are maintained at the company’s
head quarters.
The current strength of the estates and mill is that they have the ability and the support from
the staff and workers to address OSH issues. With such support plus advises and monitoring
from the JKKP, the OSH application at all level could be strengthened and improved. The
weakness as noted in the observation above is that without a register of aspects of estate and
mill activities (see 5.1), there is no base line information on which to relate potential hazards,
assessment risks and criteria for suitable PPE.
Criterion 4.8
All staff, workers, smallholders and contractors are appropriately trained
The file on “Training programme” was viewed. This contains data on the types and dates of
training session given, with the individuals who attended and a self evaluation by each
individual on the new knowledge that they could internalize from each session. However,
there is no data kept for each worker on the training they have not received, nor is their data
from systematic monitoring of their working performance after training to ensure training has
been appropriate (Observation).
It was reported that Estate Hospital Assistants (EHA) were given training on chemical use
and the law by the doctor concerned with CHRA.
As in all work places, there are inevitably some minor lapses in operating procedures – un
attended and unsheathed harvesting knives, but as a rule, workers and staffs have accepted
training according to documented procedures. The weaknesses include: formal training
schedules that cannot be frequent enough to match the rate of movement of workers between
jobs, making workers reliant on supervisor/peer training in their working sections; the absence
of a systematic monitoring that evaluate worker’s performance after training, which evaluates
the effectiveness of both the training given and the need for remedial training .
Training programme and training records are available. However, the individual training
record that could lead to evaluation and monitoring of performance for the training need of
each worker is not properly maintained (Observation).
At the mill level, evidence on training program, assessment & records of training for
employees are kept for lab staff (CHRA), storekeeper (CHRA),engine drivers (CHRA),
(Co. No. 10871-T)
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Boilermen (CHRA), electrician (CHRA & welding, workshop staff (CHRA & OSHA), 2
supervisors & 38 workers (CHRA & OSHA, power point presentation).
RSPO training for all staff and workers was also conducted in early 2009. In this special
training, RSPO standards (i.e. Piawaian RSPO Ladang Pahang) was laminated and placed in
their residences. Record showed that the standards include the use of PPE, cleanliness,
hunting prohibition, no open burning, prohibition of illegal activities and other health and
safety measures to be observed.
Discussion with some of the workers showed that adequate training has been given to the
workers. In general, workers were able to explain what RSPO is and their role in achieving
RSPO requirements.
In all estates, training programme is planned and implemented as demonstrated by two
estates. In Hwa Li Oil Palm Estate Division 1, records showed that the annual training
program in 2009 comprises first aid training, internal training for tractor drivers on tractors
maintenance, in-house training for manuring gang, in-house training for harvesters, fire drill
training, and in-house training for herbicide sprayers. Attendance list signed by trainees and
trainer for each training is kept in file. The participants are tested verbally on their
understanding of the training. In Hwa Li Oil Palm Estate Division 2, plan is made for training
of drivers and manuring workers, spraying and harvesting workers, with details such as
month of training, target group, workers involved, subject matter and trainer. Attendance list
is documented.
Field discussion with seven Indonesian workers (2 harvesters, 3 sprayers and 2 manuring
workers) in Pahang Oil Palm Estate and Asia Oil Palm Estate said that they were given proper
training before task commencement. The supervisors explained and demonstrated to them the
best practices to ensure their health and safety while performing their tasks. They were
provided safety helmet, ear plug, goggle, mask, apron, gloves, sickle and chisel cover before
commencing the related relevant tasks.
The health and safety training for the workers has brought encouraging responses. According
to the hospital assistant (HA) in-charge of Asia Oil Palm Estate, Pahang Oil Palm Estate and
Maran Oil Palm Estate, with the implementation of RSPO requirements on PPE, the number
of injury caused by falling fruits and fronds has reduced in the last two years.
PPR
RIIN
NC
CIIPPLLEE 55::
EEnnvviirroonnm
meennttaall rreessppoonnssiibbiilliittyy aanndd ccoonnsseerrvvaattiioonn ooff nnaattuurraall rreessoouurrcceess
aanndd bbiiooddiivveerrssiittyy
Criterion 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
continuous improvement.
It is noted that all estates and the mills were established prior to the legal requirement of an
EIA. In 2008, the “Social and Environmental Impact Assessment” (SEIA) was prepared
which provided a generic list of potential effects from company activities and proposed some
mitigation measures.
Though this document can be used as the basis for identifying the general aspects for
developing an approach to taking environmental responsibility and conservation of natural
resources, it is too weak to support management needs. It does not present: a systematic risk
assessment of estate and mill activities; the systematic identification of the social,
environmental and biological aspects that could arise from these activities; an identification of
(Co. No. 10871-T)
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Carotino Sdn Bhd
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the effects and mapping of site of potential impacts; an identification and mapping of sitespecific pathways and targets; and schedule and methods for review and update.
The current SEIA does outline some actions for mitigating negative impacts – biodiversity,
waste, mitigation of pollution, continuous improvement, but because an absence of a system
aspects list, there is no mechanism to assess how comprehensive is the list for mitigating
activities. Also there is no record that the SEIA descriptive assessment and proposals for
mitigation were presented for stakeholder consultation and review. In summary, there is a
general lack of environmental improvement plan that were developed through stakeholder
consultation (Minor CAR-04).
Since there are no outstanding social issues concerning local community and workforce, or
on-site biodiversity concerned issues affecting HCV 1, 2 or 3 issues that would probably have
been raised through stakeholder consultation, the inadequacies of this document are
considered as technical rather than material that is why the issue raised is not considered as
major.
The strength is that there is a document that constitutes a first public statement on potential
aspects of the activities in the estates and mill. The weakness is that this document makes no
attempt to systematically review activities, identify aspects and site-specific impacts, sitespecific mitigation proposals, and present the documents for stakeholder review and
consultation.
Criterion 5.2
The status of rare, threatened or endangered species (ERTs) and high conservation
value habitats, if any, that exist in the plantation or that could be affected by
plantation or mill management, shall be identified and their conservation taken into
account in management plans and operations
A “Conservation Assessment of Carotino’s Peninsular Malaysia Estates Conservation Values
and recommendations” has been prepared that identifies habitat areas of significance within
the estates and makes recommendations for their conservation. This includes a timetable for
implementation of riverine buffers and suggests support for the conservation of lowland forest
and karst areas surrounding the estates. But the report does not give any maps to identify the
location and extent of potential HCV areas within the estate nor regard the estate as a
stakeholder which would also have its own HCV interests – HCV to support IPM (Minor
CAR-05).
There is a general prohibition on hunting and fishing within the estate. Information signs are
posted and the control practice is being effectively implemented.
Strengths include management of riverine buffers and recommendations for the restoration of
vegetation along the river banks. This should improve the capacity of the soil in the buffer
areas to attenuate agrochemicals in soil water before they can enter waterways as well as trap
sediment in surface run-off. Restoration of vegetation should also help reinforce the banks
against erosion from flood pulses. The field study undertaken on ERTs showed strengths in
bird species, but made comparatively little effort to assess the status of mammals, reptiles,
amphibians in the estate and immediate adjacent areas. Considering elephant are a threatened
species (IUCN En C2 a (ii)) and a crop pest at Hwa Li 1, mention would have been expected
of their status in the Lesong Forest Reserve, and discussion on the role of the estate in relation
to regional conservation management. The general weakness is that there is little information
and guidance for estate management action for ERTs management on the estate and the
immediate adjacent areas.
(Co. No. 10871-T)
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Carotino Sdn Bhd
Criterion 5.3
Waste is reduced, recycled, re-used and disposed of in an environmentally and
socially responsible manner.
The “Guidelines on Waste Management” state the objectives and outline procedures for waste
management on the estates. This includes wastes subject to regulated disposal as well as
wastes from domestic, and other non-regulated sources. While the current document provides
guidelines for the management of all scheduled wastes currently used by the estates (disposed
according to EQA 1974 (Scheduled Wastes) Regulations 2005), it does not make reference to
a comprehensive register of wastes nor identify their potential sources (see 5.1) (Minor CAR
-06). Among the omissions for waste products and sources, examples include: Green House
Gases (GHG); disposal of buffalo carcases; building demolition and construction, etc.
Operating procedures cover the management of wastes from agro-chemicals and their
containers and material recovery is practiced through waste separation and recycling. These
contribute towards the avoidance and reduction of pollution.
With the exception of Hwa Li 2 Estate, all estates are outside local authority waste
management areas. Hwa Li 2 is inside the controlled by Majlis Daerah Bera (Bera District
Council). Though there was no documentation to indicate the estates had consulted with local
authorities on requirements for waste management in a Majlis Daerah’s controlled area,
observations indicate that current practices for waste storage, collection and disposal are in
line with, or exceed practices in similar areas managed by the authorities.
Significant effort is made to capture waste from crop residues and put back for beneficial use.
This includes non-oil mill output: EFB either as fibre or as nutrients from incinerator ash
(reported to be in demand to reduce the use of EFB in areas at risk from rhinoceros beetle
damage); boiler ash; fibre and shell. Fronds are stacked and left to rot in the field. Empty
bunches and stalks are re-applied to the field. Biomass from replanting is buried in trenches in
the field which minimises the nutrient loss and eutrophication of local waterways as well as to
avoid pests. POME from the mill are applied in limited areas in the field while tertiary
treatment facilities are being built for further processing of POME and piping system are laid
to spread the field application to cover more areas.
The strength demonstrated is that the company can develop and consistently comply with
their SOP for managing identified wastes. The possible weakness is that without the baseline
information a register of aspects and impacts, not all the types and sources of waste have
been identified and their significance assessed (pls see 5.1).
Criterion 5.4
Efficiency of energy use and use of renewable energy is maximised.
Currently the major use of renewable energy is from the use of fibre as a fuel to generate
steam in the mill. At present, the amount of the fibre fuel used is estimated as proportion of
the measured crop received, minus the quantity of the fibre transported out and applied in the
field. The fibre used for fuel is fed automatically into the firing chamber of the boilers
according to the demand for steam pressure. Observations suggest the fuel feed controls are
well adjusted and thus use of fuel is efficient – no smell of fuel burning in reducing
conditions, no black smoke from the stacks or carbon deposits around doors and inspection
holes to the firing chamber. However, despite the impressive operating performance at this
30-year old mill, the mill operators have no mechanism to directly monitor the rate of
consumption of renewable energy and thus they have no baseline data from which they can
plot trends in energy use and thus ensure energy use is maximized. (Minor CAR-07)
(Co. No. 10871-T)
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Carotino Sdn Bhd
Page 45 of 59
A minor use of renewable energy is at the remote guard posts which have been provided with
solar panels to replace the small fossil fuel generators used previously.
Fossil fuel use is carefully monitored and daily records kept which summarise fuel use per
tonne of CPO. Currently the data available has not been used to identify trends. (See 5.6
below)
There is no mention of plans to use biodiesel for estate and mill operations, but it is reported
that a methane recovery facility is planned for POME treatment with use of the gas in the
mill.
The strength of the estates and mill are that they are manned by competent staff who can
maintain and operate their equipment efficiently. Cost control for fuel used has been a
traditional concern and efforts made to find ways to reduce fuel demand and thus expenditure.
The weakness here is that because renewable fuels have no direct cost, there has been no
directive to maximize efficiency and thus investigate options for metering. The challenge that
needs to be met is the incorporation of an effective and affordable mechanism to meter
renewable fuel use, and the models to use the data collected to improve the management of
fuel use.
Criterion 5.5
Use of fire for waste disposal and for preparing land for replanting is avoided except
in specific situations, as identified in the ASEAN Guidance or other regional best
practice.
The company has a zero burning policy which is promoted to the staff and workers.
Observations in the field indicate there is full compliance with the policy in areas being
replanted and for the disposal of estate wastes. It was however noted that the EFB
incinerators at the mill were still in use (with current approval from the DoE). These produce
ash which is reported to be in demand and use in those areas of the estate where EFB
application would increase the risk of rhinoceros beetle damage to the palms. As a product in
demand, the ash is considered in this assessment to be a by-product from incineration rather
than as waste whose volume is being reduced by incineration. If the demand for the ash were
no longer required or justifiable, incineration would be considered to be waste disposal.
In the field being replanted, old palms are pushed over, chipped and the biomass buried in
inter-row trenches. At present, the incidence of pests and disease in the fields being
replanted are considered to be acceptable, and the use of fire to clear the fields is not
required.
Full compliance indicates the company has the strengths to set policy goals and translate
these into field practices. There are no current weaknesses for this standard.
Criterion 5.6
Plans to reduce pollution and emissions, including greenhouse gases, are developed,
implemented and monitored.
There company has developed a ‘Guidelines on pollution mitigation plans for estates’ that
form as a guidance for the developing, implementing and monitoring of appropriate plans for
reducing pollution and emission in the estates. Subject areas covered include: diesel storage,
workshops, generators, tractors, used lubrication storage, chemical mixing, sewage leaks,
siltation of drains, etc. However, without a comprehensive baseline document on aspects and
impacts, it is not known if the mitigation measures discussed cover all potentially polluting
activities (see 5.1 above).
The first draft of the document plan was prepared for this year. No date has been set for an
(Co. No. 10871-T)
t +6 (03) 2095 9200 f +6(03) 2093 8202
www.sgs.com
Page 46 of 59
Carotino Sdn Bhd
annual review of the plan.
Though no specific mention is made for green house gases (GHG), there are in progress
activities that should mitigate its emission. These include the installation of facilities to
capture methane from POME treatment. Efficient fuel/air management of the boiler
minimises sub-stoichiometric combustion producing CO. The company use buffalo for fruit
evacuation in all the oil palm estates apart from Maran Estates, making a direct reduction in
demand for diesel fuel and associated emissions.
The company has recorded diesel consumption in each estate and mill. Record of diesel
consumption between July 08 – February 09 are as follows:
Estate
FFB
(MT)
production Total consumption Diesel consumption
(litre)
per ton production
AOP
29,756
123,845
4.16
POP
23,653
82,780
3.5
Maran
19,513
136,084
6.7
Hwa Li1
35,997
119,450
3.3
Hwa Li2
33,102
277,101
8.4
It should be noted that the presence and extent of replanting work will skew the annual ratio
of diesel consumed per tone CPO/FFB making comparisons between estates not useful.
However, it is interesting to note that Hwa Li1 and Hwa Li2 are located at least 3 hrs drive to
the Carotino mill. Hwa Li1 delivers most of the fruits to nearby mill while 80 % of Hwa Li2
fruits are delivered to Carotino mill.
Between the same periods, Carotino oil mill has received and processed a total of 98,584 MT
of FFB producing 20,321 MT of CPO. The process has consumed 76,741 liter of diesel.
As described in the earlier sections of this report, there are no peat soils within any of the
estates under this certification unit.
(Co. No. 10871-T)
t +6 (03) 2095 9200 f +6(03) 2093 8202
www.sgs.com
Carotino Sdn Bhd
Page 47 of 59
PPR
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Criterion 6.1
Aspects of plantation and mill management, including replanting, that have social
impacts are identified in a participatory way and plans to mitigate the negative
impacts and promote the positive ones are made, implemented and monitored, to
demonstrate continuous improvement.
Scoping note on SEIA is available that include some evidence of stakeholder consultation.
More comprehensive documentation that include maps and identification of communities
and neighbours need to be made available (Minor CAR-08).
The estates and mill set up Joint Consultative Committee (Jawatankuasa Perundingan
Bersama) and Gender Committee. In Hwa Li Oil Palm Estate Division 1, records showed
that the Joint Consultative Committee plans quarterly meetings in 2009. Attendance list
signed by all attendants is kept in the file. Meeting minutes in local language (Malay) dated
18 February 2009; include welfare, health and safety of workers, sexual harassment, use of
PPE and awareness on maintenance of clean and healthy environment. Similarly, the
Gender Committee in this estate also plans to have quarterly meeting. Records showed that
during the meeting of this committee on 16 February 2009, among the issues discussed are
sexual harassment, women’s welfare and activities to be carried out for 2009 proposed.
(Co. No. 10871-T)
t +6 (03) 2095 9200 f +6(03) 2093 8202
www.sgs.com
Carotino Sdn Bhd
Criterion 6.2
Page 48 of 59
There are open and transparent methods for communication and consultation
between growers and/or mills, local communities and other affected or interested
parties.
The company has a comprehensive list of stakeholder relevant to the mill and estate
operation. Complaints and grievances procedure is in place, i.e. via the establishment of
JCC, H& S Committee & Gender Committee. Records of consultation with stakeholders are
available.
Mechanisms for communication and consultation with employees and other stakeholders
have been established. These mechanisms include Joint Consultative Committee, Health &
Safety Committee, Gender Committee, Complaints and Grievance Procedure, Suggestion
Box. For committees, objectives, membership, selection of committee representative from
workers, frequency of meeting, agenda of meeting, refreshment after meeting and actions to
be taken on matters discussed. The mechanisms are implemented in all estates and mill.
Mechanism is also set up to communicate with other stakeholders living in the vicinity of all
estates. Available minutes of meeting showed that the JC Chang Group estates/mill, Sri
Jaya, Pahang organised communication with local stakeholders in the regions, namely Sri
Jaya Village head and his committee members, Ketua kampong of Kg. Mengapur, managers
of Kema Development Sdn Bhd Plantation/Mill, Bakti Juwita Sdn Bhd Iron Ore Mine,
Malaco Mining Sdn Bhd Copper Mine, Felda Lapar Utara Plantation. The meeting was
attended by 25 participants to discuss matters affecting each other and local communities
such as construction of alternative road and replacement of Sri Jaya bridge.
In Hwa Li Oil Palm Estate Division 1, there is no local community in the nearby area; the
management had consultation with other estates in the region (Suburban Properties Sdn
Bhd, Harn Len Corporation Bhd, Kuantan trading Co. Sdn Bhd) on 15 April 2009. Issues
related to RSPO certification and common access road and boundary sharing were
discussed. Feedbacks from these estates are kept in file entitled “Stakeholders –
Neighbouring Estate Mill”.
In Hwa Li Oil Palm Estate Division 2, meeting minutes of the Joint Consultative Committee
on 18 March 2009 showed that issues discussed include what is RSPO, use of suggestion
box, health & safety.
The four workers in Ladang PERKIM Pahang (150 acres), located between Pahang Oil
Palm Estate and Asia Oil Palm Estate, claimed that their source and quality of river water is
not affected by the estate operations.
According to the manager of Felda Lepar Utara 2, annexed to Asia Oil Palm Estate, the
manager of latter consulted him from time to time, particularly with regards to the RSPO
certification. He subsequently took steps to inform his 180 foreign workers (60%
Indonesian and 40% Bangladeshi) not to hunt or fish in Asia Oil Palm Estate.
In a letter dated 22 April 2009, the manager of Pahang Oil Palm Estate offered the Training
Centre (Department of Orang Asli Affairs) in Paya Bungor (a few km from Sri Jaya town)
employment opportunities for the Orang Asli.
(Co. No. 10871-T)
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Page 49 of 59
Carotino Sdn Bhd
Criterion 6.3
There is a mutually agreed and documented system for dealing with complaints and
grievances, which is implemented and accepted by all parties.
Complaints and Grievances Procedure and SOP on Mechanism for Complaints and
Grievances are available. Under this SOP, what is grievances, who are the complainants,
redress of grievance, freedom from retaliation, consolidation of grievance and grievance
procedure are outlined. The procedures and mechanisms are displayed on the office notice
boards.
Interview with workers and communities showed no major issues.
At estate level and mill level, a joint consultation committee was formed. In the minutes
dated 18 December 2008 and 6 May 2009, the chairman of the mill management (located in
Pahang Oil Palm estate) encouraged the staff to or Jawatankuasa Persidangan Bersama
Majikan dan Pekerja 2009-2010 to raise issues related to welfare, rate of pay and facilities
provided by the companies such as maternity payment, sick entitlement, vacation leave pay
(VLP), retirement benefits, Socso, EPF, yearly bonus, leave entitlement, workmen
compensation insurance and group personal insurance. Matters related to water and
electricity supply for household consumption were also discussed.
Workers are encouraged to make use of the other mechanisms outlined in Criterion 6.3 in
dealing with complaints and grievances.
Evidences on grievances and complaints are kept with details such as date, grievance,
complainant and action taken by all estates and mill.
Criterion 6.4
Any negotiations concerning compensation for loss of legal or customary rights are
dealt with through a documented system that enables indigenous peoples, local
communities and other stakeholders to express their views through their own
representative institutions.
SOP for Identifying Legal and Customary Rights and Identifying People Entitled to
Compensation is available. The SOP included identification procedure, calculating and
distributing fair compensation procedure and documentation on outcome of compensation.
No evidence on dispute on legal and customary rights. No claim on estate land.
There is no reported case of dispute with any parties which have resulted in payment of
compensation ever occurred. The individual estates recognised management by customary
users and provide material support for the maintenance and places of worship (Muslims,
Chinese and Hindu) located within the estate’s land.
In Hwa Li Oil Palm Estate Division 2, the Orang Asli community in Kg Pasal did not make
any claim on their customary rights within the estate area. The headman of this village said
that Hwa Li Oil Palm Estate Division 2’s management respects and recognises the
customary land of villagers in the nearby areas. Such discussion has yet to be properly
documented. Discussion note showed that the estate management had discussion with the
nearby Ladang Pertanian Kelapa Sawit (Pahang) Sdn Bhd on 23 February 2009 where
access road, water supply, deduction of levy and bridge and culvert in main access road was
discussed.
Similarly, Orang Asli at Kg. Tomsel Anak Sg. Bekapor and Kg. Ulu Sg. Bekapor, located
(Co. No. 10871-T)
t +6 (03) 2095 9200 f +6(03) 2093 8202
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Carotino Sdn Bhd
Page 50 of 59
about 5 km away from nearest boundary of Maran Oil Palm Estate, also did not make
compensation claim as their customary land is located outside Maran Oil Palm Estate.
Criterion 6.5
Pay and conditions for employees and for employees of contractors always meet at
least legal or industry minimum standards and are sufficient to provide decent
living wages.
Guidelines on Terms and Conditions of Employment for Estate Workers are available. The
guidelines include contract agreement, wages and other employment benefits, workers’
repatriation, workers’ passport. Employment agreement and related conditions is available.
There are terms of reference or signed contracts between employers and employees
stipulating the position, working hours, type of work, location of work, workers’
responsibility, wages, allowances, holidays, rest days, annual leave, fringe benefits, levy
deductions (for foreign workers), dismissal, etc.
Clear and transparent remuneration system is in place. Workers were issued with pay slips
every time salary payment is made where wage and deduction made is clearly printed. In the
estates, the wage rates of different categories of harvesting activities are available. The wage
rates may differ slightly between estates depending on the terrains and difficulty of task.
As for the foreign workers, personnel information is kept in appropriate file with details on
the rate of payment and benefits. For foreign workers, employment contract kept contain
details information on job title, minimum basic pay, shift allowance and average overtime
per month, yearly medical check-up, leave benefits and insurance.
In Hwa Li Oil Palm Estate Division 2, pay slips showed field workers received RM1, 200
(harvesting worker) and RM969 (general worker). Discussion with workers showed that
they are satisfied with the income received. In Pahang Oil Palm Estate, a harvester received
between RM600 and RM1, 200 a month, depending on the fruiting conditions. In this estate,
2 contract manuring workers revealed that they each receives about RM600-RM800 a
month while another 2 contract sprayers indicated that monthly income received is about
RM 600 each. Workers are generally happy with the salaries received.
Discussion with workers at the quarters in the estates showed that management provided
satisfactory housing, water supply, electricity supply and welfare amenities to all the
workers. Workers also have access to potable water (the company provides water tanks),
segregated sanitary and bathing facilities and electricity.
(Co. No. 10871-T)
t +6 (03) 2095 9200 f +6(03) 2093 8202
www.sgs.com
Carotino Sdn Bhd
Criterion 6.6
Page 51 of 59
The employer respects the right of all personnel to form and join trade unions of
their choice and to bargain collectively. Where the right to freedom of association
and collective bargaining are restricted under the law, the employer facilitates
parallel means of independent and free association and bargaining for all such
personnel.
The company does not provide restriction for Malaysian workers to form workers union.
Foreign workers are subjected terms and conditions of employment which restrict them
from having association.
In all estates and mill, a published statement in local language recognising freedom of
association was placed on the notice board of the management office. The statement reads
“Pekerja-pekerja bebas untuk mengikut atau menyertai mana-mana agensi berdaftar di
bawah undang-undang Malaysia. Kenyataan ini adalah sebagai tambahan kepada kontrak
pekerja yang sedia ada. Daripada Pihak Pengurusan”.
A total of 21 office staff is members of All Malaysian Estate Staff Union. Carotino allows
workers to join trade union. A clerical staff at the mill office said that she has been the
member of this trade union for the last 7 years. According to her, the company did not
forbid workers to be members of trade union.
Criterion 6.7
Children are not employed or exploited. Work by children is acceptable on family
farms, under adult supervision, and when not interfering with education
programmes. Children are not exposed to hazardous working conditions.
Carotino does not employ persons under 16 years old. Personal information of workers
showed that all workers are above 16 years old. There is no evidence of use of child labour
in mill and estate operation.
The mill and estates maintain a complete register of workers with the individual details
including date of birth. There was no evidence of under age (below 16 years) worker
operating in the estates. Records maintained to confirm ages of workers. Youngest
registered worker as 21 years old (foreign worker) and 39 year old (local Malaysian
worker). In Hwa Li Oil Palm Estate Division 2, record showed the youngest local worker is
21 years old. In Maran Oil Palm Estate, of the total 13 Malaysian workers employed, the
youngest is 24 years old while among the 170 foreign workers, the youngest is 20 years old.
Criterion 6.8
Any form of discrimination based on race, caste, national origin, religion, disability,
gender, sexual orientation, union membership, political affiliation, or age, is
prohibited.
Equal Opportunities Policy is documented and is translated into the Malay language (Polisi
Kesamaan Peluang) and placed on the notice boards of the management offices.
Observations indicated that the policy is put into practice. Discussion with one Orang Asli
(Jakun, aged 29, with 9 years working experience as a storekeeper in Hwa Li Oil Palm
Estate Division 1) showed that the management does not discriminate even though he is an
Orang Asli. He started working as a field worker in 2000 and was promoted to store keeper
in 2005, earning a monthly income of RM1, 500. Just like other workers, he also enjoyed
the benefit of housing, water and electricity supply, medical claims based on bills for all
family members. The monthly pay slip of another Orang Asli worker showed that every
month he receives RM860 as basic wages, RM210 transport allowance, RM10 fuel
allowance, RM150 remote allowance. Deduction was made for RM153 (EPF) and RM5.25
(SOCSO). Another discussion with two Indonesian workers indicated that they did not
experience any discrimination on wages, housing facilities and welfare compared to their
(Co. No. 10871-T)
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Carotino Sdn Bhd
Page 52 of 59
Malaysian counter parts.
In Hwa Li Oil Palm Estate Division 2, of the 139 foreign workers (135 Indonesian & 4
Indians), discussion with 4 Indonesian workers (3 males and 1 female) showed that the
management practises equal opportunities policy. Discussions with field workers in other
estates showed the foreign workers are not discriminated against.
Criterion 6.9
A policy to prevent sexual harassment and all other forms of violence against
women and to protect their reproductive rights is developed and applied.
Sexual Harassment Policy is in place and displayed. The policy was also written in the
Malay language and displayed on the notice boards. No evidence or practices that contradict
this policy were observed. Discussion with female staff shows that the company provide fair
and just treatment to women. Grievance mechanism for sexual harassment is in place, with
the formation of the Gender Committee.
A SOP on “Mechanism for the Prevention and Eradication of Sexual Harassment and
Violence in the Work Place” is also in place. The SOP includes preventing sexual
harassment in workplace, rationale, what is sexual harassment, forms of sexual harassment,
strategies to prevent sexual harassment, a clear sexual harassment policy, monitor the work
place regularly, take all complaints seriously, guidelines for handling complaints on sexual
harassment.
No cases of harassment against women. Discussion with female staff in Hwa Li Oil Palm
Estate Division 1, Hwa Li Oil Palm Estate Division 2 and Maran Oil Palm Estate showed
that there is no incidence of sexual harassment. The female staff expressed that they felt
comfortable and safe working in the estates.
Criterion 6.10
Growers and mills deal fairly and transparently with smallholders and other local
businesses.
Carotino palm oil mill only processes FFB sourced from own plantation as such the
company does not deal with smallholders and all operations within the estates are carried
out by the company.
Criterion 6.11
Growers and millers contribute to local sustainable development wherever
appropriate.
Records of annual educational subsidies. The estate and mill managements provide various
additional benefits to their staff, particularly in relation to their educational welfare. Free
transportation is made available for children to attend primary and secondary schools in the
nearby areas. A primary student receives RM200 a year and a secondary student RM300 a
year as educational subsidy. Records in Maran Oil Palm Estate showed that parents received
the cash from the management. For this estate, a total of RM4, 200 was spent between July
and December 2008.
There are evidences of contribution to the Orang Asli community during needs. The Orang
Asli in Kg. Pasal near to Hwa Li Oil Palm Estate Division 2 confirmed that the management
assists the villagers by transporting water to the village in time of water shortage. The
management also helped in minor village repairs when needs arise.
Contribution was extended to JKKK Sri Jaya for maintaining the access road. In a letter
dated 6 January 2009 by Jawatankuasa Kemajuan & Kelamatan Kampung Sri Jaya,
Carotino Sdn Bhd contributed RM80, 000 (from mill, Pahang Oil Palm Estate, Asia Oil
Palm Estate and Maran Oil Palm Estate) for the maintenance and management of the
(Co. No. 10871-T)
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Page 53 of 59
Carotino Sdn Bhd
temporary access road between Taman Emas and Multipurpose Hall, Sri Jaya. Records from
Maran Oil Palm Estate and Pahang Oil Palm Estate showed that a total of RM40, 000 was
paid by cheques to JKKK Sri Jaya.
Besides, Carotino Sdn Bhd also maintains the road leading Sri Jaya to the estates, thus also
benefiting smallholders using the road. Records showed that between July 2008 and March
2009, Maran Oil Palm Estate spent RM66, 777 on maintaining the main access road from
Sri Jaya to the estate.
PPR
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Criterion 7.1
A comprehensive and participatory independent social and environmental impact
assessment is undertaken prior to establishing new plantings or operations, or
expanding existing ones, and the results incorporated into planning, management
and operations.
This Principle is not applicable as all Carotino oil palm plantations in Pahang were all
planted since 1970s. The lands are either purchased from other companies or developed by
the Group in 1970s. Currently, the company only carried out limited replanting in some of
the estates. There are no new plantings within the certification unit and the company is only
involved in re-planting programme after felling of old palms and there is no plan for
expansion.
Criterion 7.2
Soil surveys and topographic information are used for site planning in the
establishment of new plantings, and the results are incorporated into plans
and operations.
Not applicable. All estates have been planted since 1960s/1970s.
Criterion 7.3
New plantings since November 2005 have not replaced primary forest or any area
required to maintain or enhance one or more High Conservation Values.
Not applicable
Criterion 7.4
Extensive planting (to be determined by SEIA) on steep terrain, and/or on marginal
and fragile soils, is avoided.
Not applicable
Criterion 7.5
No new plantings are established on local peoples’ land without their free, prior and
informed consent, dealt with through a documented system that enables
indigenous peoples, local communities and other stakeholders to express their
views through their own representative institutions..
Not applicable
Criterion 7.6
Local people are compensated for any agreed land acquisitions and relinquishment
of rights, subject to their free, prior and informed consent and negotiated
agreements.
Not applicable.
Criterion 7.7
Use of fire in the preparation of new plantings is avoided other than in specific
situations, as identified in the ASEAN Guidance or other regional best practice.
Not applicable
(Co. No. 10871-T)
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Carotino Sdn Bhd
Page 54 of 59
PPR
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Criterion 8.1
Growers and millers regularly monitor and review their activities and develop and
implement action plans that allow demonstrable continuous improvement in key
operations.
Pesticide use is carefully controlled and applied in response to monitoring. IPM methods
have been incorporated into operating practices with provision of nesting boxes for barn owls
and establishing plants beneficial to the predators of crop pests. However, in young planting
areas, poison rat bait is still applied to protect the palms at this vulnerable stage. No
information has been provided on investigation to seek alternative non-chemical mitigating
measures. To further reduce the need for application, the company is beginning trials on
biological control methods such as the use of Metarhizium fungus to control rhinoceros
beetles population and potentially reduce the use Cypermethrin.
It was noted in 4.6 that there is a miss-match between the chemical listed for potential use on
the estates and the CHRA. At present, the company does not have a programme to
systematically review chemical use for continuous improvement in CHRA, and biological and
environmental protection. But without a systematic review of the aspects and impacts
assessment of estate and mill activities to identify the activities where chemicals including
pesticides, and ensure all related documentation for social and biological plans are updated,
continuous improvements will be difficult to sustain.
There is a current version of “Social and Environmental Impact Assessment” (SEIA) but as
noted in 5.1, this is not considered complete and is in need of review in order to ensure a
comprehensive examination of aspects and impacts from estate and mill activities is made to
improve the adequacy of the current plan, and identify where gaps may still exist.
Efforts are in place to separate and, where possible, recycle materials from the scheduled and
non-scheduled waste streams (See 5.3). Agricultural by-products exported with the crop from
the estates to the mill are either used as renewable fuel for power generation or returned to the
field as fibre or ash. Effort is made in mill to maximise oil-extraction from mill by-product.
A pollution prevention plan is in place, (see 5.6). Investment is currently being made to
further reduce emissions –lower BOD, to water from POME and through investment in
facilities to capture methane -lower climate changing emissions to air.
Social impacts are mentioned in the current version of the SEIA, however, the findings and
recommendations of this document were not been presented for stakeholder review (See 6.1)
Scoping note on SEIA is available with some evidence of stakeholder consultation. However,
the documents currently available do not include detail maps that identify the communities
and neighbours need to be made available (Minor CAR-08) as part of system to initiate
improvement.
The company has demonstrated strength in the areas that deal with efficient crop production,
harvesting practices, field maintenance, mill operations as well as staff and worker
management and subjects that require legal compliance. The weakness, on the other hand are
in organising the management systems that can assess estate and mill activities for aspects and
impacts, collect and update the necessary data and synthesise this into information for making
management decisions. This includes data on: social issues, support for biodiversity and
reduction of impacts on the environment. The company lacks a system that would allow
adaptive management cycles that:
(Co. No. 10871-T)
t +6 (03) 2095 9200 f +6(03) 2093 8202
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Page 55 of 59
Carotino Sdn Bhd
•
can make systematic assessments of estate and mill activities for potential effects,
• screen those effects for impacts on society and the environment,
• set thresholds to identify significant impacts,
• identify the source, pathways and targets of those impacts so that mitigation measures
can be designed,
• set the indicators and methods to monitor for effective management,
• establish a systematic mechanism to evaluate monitoring records and revise mitigation
measures at regular intervals.
10.
CHAIN OF CUSTODY
Fresh Fruit Bunches (FFB) produced by the plantation are transported to and processed at
Carotino Oil Mill which is located within the Pahang Estate, Sri Jaya, Pahang. The mill with a
moderate capacity of 30 metric ton FFB per hour received and processed only raw materials
(FFB) from own estates as described in this report. In fact, based on over capacity, FFB
produced by Hwa Li 2 Estate are sent to other oil mill. Summary records of FFB production
from each estate since 2003 are as tabulated in Table 10.1 below.
Table 10.1: Summary records of FFB production (metric ton) from each estate since between
July to June every year since 2003
Estate
AOPE
POPE
Maran Estate
Hwa Li1
Hwa Li2
Total
2003-2004
19,487
24,334
19,530
46,119
109,478
2004-2005
27,640
25,755
21,228
26,510
46,022
147,355
2005-2006
31,533
29,689
29,103
32,632
48,110
171,067
2006-2007
25,709
29,531
29,877
31,551
44,973
161,641
2007-2008
39,157
33,013
26,843
49,629
53,555
202,197
From the plantation, the FFB were delivered by trucks where details on the delivery documents
allow traceability of the fruits to harvesting block in each estate. Records of FFB deliveries and
input into the processing line are well maintained by the company. Similarly, records of CPO
and palm kernel out put are also maintained on daily basis. Summary record of CPO and PK
output from the Carotino Oil is as presented in Table 10.2.
Table 10.2: Summary record of CPO and PK output from the Carotino Oil mill between Jul 08 –
March 09
Jul 08 Aug 08 Sept 08 Oct 08
Nov 08
Dec 08
Jan 09
Feb09
Mar 09
Total
FFB received 14,508 14,689.8 11,404.7 12,754.7 13,042.2 12,384.9 10,716.0 9,082.8 11,452.6 110,035.7
CPO
production
2,914.2 2,977.5 2,350.6 2,696.0
2,749.7
2,607.6
2,194.1 1,830.9 2,294.9
22,615.5
OER (%)
20.1
PK
845.9 829.8
20.3
20.6
21.1
21.1
21.1
20.5
20.2
20.0
20.6
645.1
705.0
799.1
746.1
659.1
559.4
709.7
6,499.2
(Co. No. 10871-T)
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Carotino Sdn Bhd
Page 56 of 59
As far as chain of custody is concern, the mill (and the plantation) currently does not have a
documented standard operation procedures (SOP) that identify the critical control points (CCPs)
and described the method used in identifying, segregating and recording at each point identified.
This is not a critical issue since the mill only sourced FFB from own estates which is subjected
to the evaluation. The SOP document helps in formalizing the system, cite the records and data
involved at each stage and identify the person in charge (or the management representative)
responsible for the implementation and maintenance of the whole system and ensuring its
integrity.
The mill now has four CPO storage tanks to store CPO produced. The company also maintains
clear records of incoming and outgoing through stock control. All CPO are dispatched to buyers
via truck / tanker with proper sales and delivery documents in place. Each truck / tanker was
properly sealed prior to leaving the mill. The seal number is recorded in the delivery document
together with the volume and the buyer’s name.
(Co. No. 10871-T)
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Carotino Sdn Bhd
11.
SUMMARY OF CORRECTIVE ACTION REQUESTS (CARS)
Follows are summary detail of CARs issued:
CAR #
Indicator
CAR Details
01
2.2.3
Physical demarcations on the ground (i.e. boundary markers) are adequate
but apart from some sections in Hwa Li2 and Maran, other areas are
without boundary stones.
02
4.1.2
Inadequate evidence of systematic monitoring of the SOPs to ensure
effectiveness of its implementation to generate continuous improvement.
03
4.4.1
Buffer zones are identified and demarcated along main rivers but minor
streams are not consistently marked.
04
5.1.2
Lack of environmental improvement plan that has been developed
through stakeholder consultation.
05
5.2.2
A “Conservation Assessment of Carotino’s Peninsular Malaysia Estates
Conservation Values and recommendations” has been prepared that
identifies habitat areas of significance within and surrounding the estates
and makes recommendations for their conservation. But the report does
not provide maps that identify the location and extent of potential HCV
within the estate that could possibly support the implementation of IPM.
06
5.3.1
Waste management plan does not identify ALL waste products and
sources of pollution suggesting that the document was not produced as a
result of full screening of the impact and aspect of the mill and estate
operation.
07
5.4.1
Efforts has been made to estimate the renewable energy used in the boiler
but this estimate is not sufficient to monitor the energy used and observe
trend.
08
8.1.5
Scoping note on SEIA is available with some evidence of stakeholder
consultation been conducted. More comprehensive documentation that
include maps and identification of communities and neighbours need to
be made available as part of tools for monitoring continuous
improvement on social elements.
Note: Major CAR, if any, will be identified with ‘M’.
(Co. No. 10871-T)
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Carotino Sdn Bhd
12.
Page 58 of 59
ASSESSMENT DECISION
The assessment has resulted in the issuance of 8 Minor Corrective Action Requests. Details
of the CAR and the objective evidence are as listed in Appendix 3.
With no outstanding Major CAR, the Carotino Sdn Bhd’s management of Carotino Palm
Oil Mill and its supply base estates in Pahang, Malaysia, is now recommended for the
certification against the RSPO P&C MYNI requirements. The issues highlighted as Minor
CARs must be adequately addressed and the adequacy of the actions taken need to be verified
during the first surveillance visit to be conducted within 12 months from the date of
assessment.
13.
ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY AND FORMAL
SIGN-OFF OF ASSESSMENT FINDINGS
It is acknowledged that the assessments cited in this report have been carried out as stipulated
and we confirm the acceptance of the assessment report contents including assessment
findings.
(Co. No. 10871-T)
t +6 (03) 2095 9200 f +6(03) 2093 8202
www.sgs.com
Page 59 of 59
Carotino Sdn Bhd
14.
RECORD OF STAKEHOLDER COMMENTS AND INTERVIEWS
As described in the earlier sections of this report, letters were sent to stakeholders as apart of
process for informing them on the assessment to be carried out as well as a mechanism to
solicit comments. During the assessment, discussion and consultation were held with a
number of agencies, communities, workers etc. Follows are the comments/issues received or
highlighted by the stakeholders and responds from the audit team:
Nr
1
2
3
4
Comment
Response
Main Evaluation
Hwal Li1 is bordering logged
The company has dug out trenches along its
over Hutan Simpan Lesong
boundary plus the electric fences to tackle the
which is rich in chengal and
elephant problem. This means that the boundary is
merbau. The area north of Hwa
clearly marked and no access from the estate into
Li1 estate is highly vulnerable
the forest. The estates also have a number of
and has been subjected to number security gates at the outer boundary to prevent
illegal logging cases. The estate
outsiders from entering the estate without purpose.
management cooperation in
ensuring that their property is not
being used as access point by the
illegal loggers.
Orang Asli villagers in Kg. Pasal
felt that Hwa Li Oil Plam Estate
Division 2 is very helpful to them
in time of needs.
The headman of Kg. Mengapor,
located near to Maran Oil Palm
Estate, requested the estate to
repair the main access road near
to the village to avoid flodding.
The manager of Felda Lepar
Utara 2 commented that the
manager of Asia Oil Palm Estate
had regularly visited and
discussed matters related to
RSPO, operation and workers.
The company should continue to have good
relationship with the nearby stakeholders.
The company took appropriate action and this was
appreciated by the villagers.
The sharing of experience on RSPO preparations
and seeking cooperation from other stakeholders
are important to encourage more estates going for
RSPO certification.
END OF REPORT
(Co. No. 10871-T)
t +6 (03) 2095 9200 f +6(03) 2093 8202
www.sgs.com

sgs qualipalm oilpalm plantation management verification

Transcription

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