Audit Report Surveillance Audit for PT. PP London Sumatera Indonesia Tbk. Dolok Mill and Its Supply Base FMS40044 RSPO Membership number: 1-0015-04-000-00 RSPO Member Name: PT PP London Sumatra Indonesia Tbk Audited Address: Dolok Mill: Desa Perkebunan Dolok, Kecamatan Limapuluh, Kabupaten Batubara, North Sumatera IDN Its supply bases: Dolok Estate: Kecamatan Limapuluh, Kabupaten Batubara, North Sumatera IDN Bah Lias Estate: Kecamatan Bandar, Kabupaten Simalungun, North Sumatera IDN Bah Bulian Estate: Kecamatan Raya Kahean, Kabupaten Simalungun, North Sumatera IDN Si Bulan Estate: Kecamatan Tebing Syahbandar, Kabupaten Serdang Bedagai, North Sumatera IDN Date of audit: 27/05/2016 COMMERCIAL- IN – CONFIDENCE I The contents of this report must not be disclosed to a third party without the agreement of the SAI Global Client
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Table of contents Executive Overview Abbreviations Used 1.0 1.1 1.2 1.3
Page 4 5
1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13
SCOPE OF THE ASSESSMENT Introduction Audit Objective Scope of Certification 1.3.1 Palm Oil Mill 1.3.2 Oil Palm Estate Location of Mill and Estates Description of Supply Base Date of Plantings Area of Plantation Approximate Tonnages Offered for Certification (CPO and PK) Other Certificates Held Organisational Information/Contact Person Time Bound Plan for Other Management Units Partial Certification Requirements Date of Issue of Certificate dan Date of Previous Assessment
7 7 7 8 8 8 16 16 17 18 22 22 22 23 24
2.0 2.1 2.2 2.3 2.4 2.5
AUDIT PROCESS Certification Body Audit Methodology Qualification of the Lead Auditor and Audit Team Members Stakeholder Consultation Date of Next Surveillance Visit
24 24 25 26 27
3.0 3.1 3.2 3.3
AUDIT FINDINGS Action taken on previous audit issues Claim and use of certification mark and or logo Description of audit findings 3.3.1 RSPO Principle and Criteria, Indonesian National Interpretation 3.3.2 Mill Supply Chain Requirements 3.3.2.1 Supply Chain Certification Standard 3.3.2.2 Supply Chain Certification System Recommendation Environmental and social risk for this scope of certification for planning of the surveillance audit Acknowledgement of Internal Responsibility and Formal Sign-off of Assessment Findings
3.4 3.5 3.6
27 27 28 28 160 160 170 171 171 172 Page
List of Tables 1 2 3 4 5 6 7
Mill and Estates GPS Locations included in certification assessment FFB Production of the supply base May 2016 – April 2017 Estate Age Profiles of Planted Palms 2016 Land use description of Dolok, Bah Lias, Bah Bulian and Si Bulan Estate in 2016 Estates and Area Planted 2016 FFB Production Trend 2011 – 2015 Total CPO and PK Production 2015 and Estimate Production of 2016
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8 9 10 11 12
Mill Production and Delivery of ALL Certified Products (CPO and PK), actual volume since date of last reporting period Estimated Production of Certified CPO and PK Certificates Held by Mill and Estates RSPO Certification Time Bound Plan List of internal and external stakeholder
20 21 22 22 26
List of Figures 1a-d2 Map of Mill and Estates Location
Page 9-15
List of Appendices A Audit Record B Previous nonconformities, corrective actions and status C Nonconformities, Corrective Actions and Observations Summary D Stakeholder’s issues and comment E Definition of, and action required with respect to audit findings
Page 173 180 196
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Executive Overview This is the first (1st) annual surveillance audit visit on 23 – 27 May 2016 against the Generic RSPO Principles and Criteria for Sustainable Palm Oil Production, May 2013 and RSPO Supply Chain Certification Standard, CPO Mill, Module D Identity Preserved, November 2014. PT PP London Sumatra Indonesia Tbk Dolok Mill operations is comprised 1 (one) Palm Oil Mill and 4 (four) FFB supply bases owned by PT PP London Sumatra Indonesia Tbk. There was no supply base from independent third party. Six (6) minor and sixteen (16) major non-conformances were issued during this audit.The organisation has followed up by submitting correction and corrective action plan. Follow up audit for verification on the correction and corrective action of the major and minor NCR issued was done on 25 August 2016. The issued findings in the 1st annual surveillance audit has been rectified and considered as closed. The audit concluded that PT PP London Sumatra Indonesia Tbk Dolok Mill and its supply bases operation were found complies with the requirements of the Generic RSPO Principles and Criteria for Sustainable Palm Oil Production, May 2013 and RSPO Supply Chain Certification Standard, CPO Mill, Module D Identity Preserved, November 2014. The estimate figures of production offered for certification 2016 are: Estimated tonnage of certified CPO produced Estimated tonnage of certified PK produced
39,970 MT 10,033 MT
Therefore PT PP London Sumatra Indonesia Tbk Dolok Mill and supply bases can continues to be certified as RSPO Identity Preserved Model CPO and PK producer.
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Abbreviations Used AK3U AMDAL AME BHL BKM BLE BLH BLRS BOD BPN COD CPO CSR DLE DO EFB EMS EWS FFB GAPKI GPS Ha HCV HGU GHG HIPERKES HO IDN IPM ISCC ISO ISPO Jamsostek Kepmen KTU LA LD Lonsum LSU LTI MCU MSDS MT NCR NGO OER OHS OHSAS P2K3
Occupational Health and Safety Expert (Ahli K3 Umum) Environmental Impact Analysis (Analisis Dampak Lingkungan) Area Manager Engineering Daily worker (Buruh Harian Lepas) Log book of group leader activity (Buku Kegiatan Mandor) Bah Lias Estate Environmental Agency (Badan Lingkungan Hidup) Bah Lias Research Biological Oxygen Demand National Land Agency (Badan Pertanahan Nasional) Chemical Oxygen Demand Crude Palm Oil Corporate Social Responsibility Dolok Estate Delivery Order Empty fruit bunch Environmental Management System Early Warning System Fresh Fruit Bunch Indonesian Palm Oil Association (Gabungan Pengusaha Kelapa Sawit Indonesia) Global Positioning System Hectare High Conservation Value Land Use Title (Hak Guna Usaha) Green House Gases Industrial Hygienist Head Office Indonesia Integrated Pest Management International Sustainability Carbon Certification International Standards Organisation Indonesia on Sustainable Palm Oil Man Power Social Assurance (Jaminan Sosial Tenaga Kerja) Degree of Man Power Ministry (Keputusan Menteri Tenaga Kerja) Head of Administration (Kepala Tata Usaha) Land Application Lethal Dosage London Sumatera Leaf Sampling Unit Loss Time Incident Medical Check-Up Material Safety Data Sheet Metric Ton Non Conformance Report Non-Government Organisation Oil Extraction Rate Occupational Health and Safety Occupational Health and Safety Assurance Services OHS Committee
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P&C PEL Permen/Permenaker Permentan PK PKB PKWT POM POME PP PPE PUK QC R&D RABQSA RKH RKL RPL RSPO SCCS SG SIA SIO SMK3 SPSI SOP UKL UPL Walhi WWF WWTP
Principle and Criteria Environmental Evaluation Presentation (Penyajian Evaluasi Lingkungan) Regulation of Man Power Ministry (Peraturan Menteri Tenaga Kerja) Regulation of Agricultural Ministry (Peraturan Menteri Pertanian) Palm Kernel Joint Working Agreement (Perjanjian Kerja Bersama) Contracted worker (Pekerja Waktu Tertentu) Palm Oil Mill Palm Oil Mill Effluent Government Regulation (Peraturan Pemerintah) Personal Protective Equipment Caretaker Unit (Pengurus Unit Kerja) Quality Control Research and Development Quality Society of Australia Daily Work Plan (Rencana Kerja Harian) Environmental Management Plan (Rencana Pengelolaan Lingkungan) Environmental Monitoring Plan (Rencana Pemantauan Lingkungan) Roundtable on Sustainable Palm Oil Supply Chain Certification System Segregation Social Impact Assessment Operator Lisence (Surai Ijin Operasi) Occupational Health and Safety Management System (Sistem Manajemen Kesehatan dan Keselamatan Kerja) Indonesian Worker Union (Serikat Pekerja Seluruh Indonesia) Standard Operational Procedure Environmental Management Effort (Upaya Pengelolaan Lingkungan) Environmental Monitoring Effort (Upaya Pemantauan Lingkungan) (Wahana Lingkungan Hidup Indonesia) World Wild Fund Waste Water Treatment Plant
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1.0 1.1
SCOPE OF THE ASSESSMENT
Introduction
SAI Global conducted an audit of PT PP London Sumatra Indonesia Tbk. Dolok Mill and Its Supply Base on 23/05/2016 to 27/05/2016 with Major Nonconformities identified. Follow up audit has been conducted on 25 August 2016 for verification of corrective action taken by the organisation. The purpose of this audit report is to summarise the degree of compliance with the relevant criteria, as defined on the cover page of this report, based on the evidence obtained during the audit of your organisation. SAI Global audits are carried out within the requirements of SAI Global procedures which also reflected the requirements and guidance provided in the international standards relating to audit practice such as ISO/IEC 17021, ISO 19011, RSPO Certification System, relevant RSPO Supply Chain Certification System and other normative criteria. SAI Global Auditors are assigned to audits according to industry, standard or technical competencies appropriate to the organisation being audited. Details of such experience and competency are maintained in our records. The audit team is detailed in the attached audit record. In addition to the information contained in this audit report, SAI Global maintains files for each client. These files contain details of organisation size and personnel as well as evidence collected during preliminary and subsequent audit activities (Documentation Review and Scope) relevant to the application for initial and continuing certification of your organisation. Details of your primary contact persons and their contact details and site addresses are also maintained. Please take care to advise us of any change that may affect the application/certification or may assist us to keep your contact information up to date, as required by SAI Global Terms and Conditions. Please note that this report is subject to independent review and approval. Should changes to the outcomes of this report be necessary as a result of the review, a revised report will be issued and will supersede this report. 1.2
Audit Objective
This is the 1st annual surveillance audit. The purpose of this audit was to determine continuing compliance of your organization’s management system with the audit criteria Generic RSPO Principles and Criteria for Sustainable Palm Oil Production, May 2013 and RSPO Supply Chain Certification Standard, CPO Mill, Module D IP, November 2014 and its effectiveness in achieving continual improvement and system objectives. It was also to verify the volume of certified and uncertified FFB entering the mill and volume sales of RSPO certified producers.
1.3
Scope of certification
The scope of certification is the CPO production from one (1) Palm Oil Mill and four (4) FFB supply base owned by PT. PP London Sumatera Indonesia Tbk.
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1.3.1 Palm Oil Mill Dolok Mill PT. PP London Sumatera Indonesia Tbk. Location: Desa Perkebunan Dolok, Kecamatan Limapuluh, Kabupaten Batubara, North Sumatera IDN GPS Location: East 99o25’49.18” North 3o9’53.68” Mill capacity: 45 MT FFB/hour 1.3.2 Oil Palm Estate 1.3.2.1 Dolok Estate PT. PP London Sumatera Indonesia Tbk. Location: Kecamatan Limapuluh, Kabupaten Batubara, North Sumatera IDN GPS Location: East 99o25’47.76” North 3o9’54.15” 1.3.2.2 Bah Lias Estate PT. PP London Sumatera Indonesia Tbk. Location: Kecamatan Bandar, Kabupaten Simalungun, North Sumatera IDN GPS Location: East 99o25’47.76” North 3o10’53.77” 1.3.2.3 Bah Bulian Estate PT. PP London Sumatera Indonesia Tbk. Location: Kecamatan Raya Kahean, Kabupaten Simalungun, North Sumatera IDN GPS Location: East 99o33’39.61” North 2o41’40.47” 1.3.2.4 Si Bulan Estate PT. PP London Sumatera Indonesia Tbk. Location: Kecamatan Tebing Syahbandar, Kabupaten Serdang Bedagai, North Sumatera IDN GPS Location: East 99o9’39.11” North 3o15’1.11” 1.4
Location of mill and estates Table 1: Mill and Estates GPS Locations MILL AND ESTATE
EASTING
NORTHING
Dolok Mill
99o25’49.18”
3o9’53.68”
Dolok Estate
99o25’47.76”
3o9’54.15”
Bah Lias Estate
99o25’47.76”
3o10’53.77”
Bah Bulian Estate
99o33’39.61”
2o41’40.47”
Si Bulan Estate
99o9’39.11”
3o15’1.11”
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Figure 1a Map of Mill and Estates Location Lima Puluh
Note : DLE – Dolok Estate. BLE – Bah Lias Estate Source: Lonsum, April 2014
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Figure 1b Map of Mill and Estates Location Serdang
Note: BBE – Bah Bulian Estate, SIE – Si Bulan Estate Source: Lonsum, April 2014
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Figure 1c Map of Dolok Estate
Source: Lonsum, April 2014
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Figure 1d Map of Dolok Estate – Sei Bejangkar Division
Source: Lonsum, April 2014
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Figure 1e Map of Bah Lias Estate
Source: Lonsum, April 2014
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Figure 1f Map of Bah Bulian Estate
Source: Lonsum, April 2014
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Figure 1e Map of Si Bulan Estate
Source: Lonsum, April 2014
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1.5
Description of supply base
The FFB sources are four (4) organisations owned by PT. PP London Sumatera Indonesia Tbk. No supply base from independent third party. The hectarage and FFB production of the plantation is shown on Table 2. Table 2: FFB Production of the supply base May 2016 – April 2017 ESTATE
PLANTED AREA (HA)
FFB (TON/YEAR)
Dolok Estate
2,997.08
50,398.39
Bah Lias Estate
3,653.56
71,699.50
Bah Bulian Estate
1,055.86
26,473.45
870.68
11,952.30
8,577.18
160,523.65
Si Bulan Estate Total Source: Lonsum, May 2016
1.6
Date of plantings Table 3: Estate Age Profiles of Planted Palms 2016 Year
1984 1989 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005*) 2006*) 2007*) 2008*) 2009*) 2010
Dolok Estate 0 0 105.52 172.58 286.65 0 80.79 0 500.61 208.39 239.94 115.70 305.48 159.45 0 28.44 392.79 0 0 244.85 48.13
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Bah Lias Estate 0 0 81.28 33.21 0 16.49 77.86 19.89 162.28 7.46 258.45 194.90 102.11 154.67 43.71 328.51 193.21 1,017.43 231.91 164.90 238.23
Bah Bulian Estate 0 0 0 0 0 0 0 0 0 84.26 28.46 88.76 74.15 0 0 321.58 0 0 458.65 0 0
Si Bulan Estate 0 0 0 26.06 0 0 0 74.69 7.83 114.46 108.20 136.88 35.79 0 0 0 0 0 0 0 0
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Total
0 0 186.80 231.85 286.65 16.49 158.65 94.58 670.72 414.57 635.05 536.24 517.53 314.12 43.71 678.53 586.00 1,017.43 690.56 409.75 286.36
% of Planted Area 0 0 2.18 2.70 3.34 0.19 1.85 1.10 7.82 4.83 7.40 6.25 6.03 3.66 0.51 7.91 6.83 11.86 8.05 4.78 3.34
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Year
2011*) 2012*) 2013*) Mature 2013*) 2014**) 2015**) Immature Total
Dolok Estate
Bah Lias Estate
107.76 0 0 2,997.08 0 0 0 0 2,997.08
Bah Bulian Estate
91.78 108.08 0 3,526.36 55.97 33.49 37.74 127.20 3,653.56
Si Bulan Estate
0 0 0 1,055.86 0 0 0 0 1,055.86
Total
0 0 0 503.91 0 68.54 298.23 366.77 870.68
199.54 108.08 0 8,083.21 55.97 102.03 335.97 493.97 8,577.18
% of Planted Area 2.33 1.26 0 94.24 0.65 1.19 3.92 5.76 100.00
Source: Lonsum, May 2016 Note: *) replanting **) conversion from rubber to oil palm
1.7
Area of plantation
The areas details for organisation owned estates are shown on Table 5. Review of estate boundary maps could be done. There is no new open area since November 2005. Planting year above 2005 was replanting. Table 4: Land use description of Dolok, Bah Lias, Bah Bulian and Si Bulan Estate in 2016 HECTARES
AREA
Mature area Immature area Total area planted Emplacement and Mill Other plantation (Rubber/Cocoa/Coco nut) Other area (enclave, water ponds, land with slope >30%)
Total leased area HCV Area (included in planted area
DOLOK
BAH LIAS
BAH BULIAN
SI BULAN
2,997.08
3,526.36
1,055.86
503.91
8,083.21
0
127.20
0
366.77
493.97
2,997.08
3,653.56
1,055.86
870.68
8,577.18
189.64
235.45
26.93
34.15
486.17
0
59.41
0
336.00
395.41
4.07
103.74
163.67
0
271.48
3,190.79
4,052.16
1,246.46
1,240.83
9,730.24
23.95
86.97
194.04
7.55
312.51
TOTAL
Source: Lonsum, May 2016
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Table 5: Estates and Area Planted 2016 ESTATE
MATURE (HA)
TOTAL (HA)
IMMATURE (HA)
DOLOK
2,997.08
0
2,997.08
BAH LIAS
3,526.36
127.20
3,653.56
BAH BULIAN
1,055.86
0
1,055.86
503.91
366.77
870.68
8,083.21
493.97
8,577.18
SI BULAN TOTAL Source: Lonsum, May 2016
1.8
Approximate tonnages offered for certification (CPO and PK)
Approximate tonnages offered for certification is estimated based on the organisation last three years actual FFB production of Dolok, Bah Lias, Bah Bulian and Si Bulan Estate as well as last year CPO and PK, OER and KER of Dolok Mill. The OER and KER of each supply bases were estimated based on laboratory analysis. Table 6: FFB Production Trend 2011 – 2015 Actual Production (MT) YEAR Dolok Estate
Bah Lias Estate
Bah Bulian Estate
Si Bulan Estate
Total
2011
60,800.97
74,751.97
25,955.59
14,746.34
161,523.28
2012
55,532.87
79,409.31
27,381.34
13,086.52
175,410,04
2013
57,000.13
76,528.40
26,756.24
12,451.38
172,736.15
2014
55,303.93
80,023.85
28,055.55
13,860.97
177,244.30
2015
54,365.36
75,115.72
27,878.72
12,851.09
170,210.89
Source: Lonsum, May 2016
Table 7: Total CPO and PK Production 2015 and Estimate Production of 2016
Supply Base
FFB Processed (MT)
CPO Production (MT)
OER (%)
PK Production (MT)
KER (%)
Actual production May 2015 – April 2016 Dolok Estate
54.943,95
13.400,74
3.531,64
Bah Lias Estate
72.991,49
17.802,50
4.691,69
Bah Bulian Estate
27.574,23
6.725,31
Si Bulan Estate
12.769,28
3.114,41
820,77
168.278,95
41.042,96
10.816,50
Total
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1.772,39
6.43
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Estimated production May 2016 – April 2017 Dolok Estate
50.398,39
12.549,20
3.149,90
Bah Lias Estate
71.699,50
17.853,18
4.481,22
Bah Bulian Estate
26.473,45
6.591,89
Si Bulan Estate
11.952,30
2.976,12
747,02
160.523,65
39.970,39
10.032,73
Total
24.90
1.654,59
6.25
Source: Lonsum, May 2016
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Table 8: Mill Production and Delivery of ALL Certified Products (CPO and PK), actual volume since date of last reporting period
FFB Production (ton) Month 2015 August September October November December 2016 January February March April Total
Dolok
Bah Lias
Bah Bulian
Si Bulan
Palm Oil (MT) Total
Bah Lias
Dolok
Bah Bulian
PK (MT) Si Bulan
Total
Dolok
Bah Lias
Bah Bulian
Si Bulan
Total
6,424 6,069 6,951 4,709 4,114
8,480 7,274 8,654 5,695 6,179
2,892 2,554 3,061 2,133 2,591
1,369 1,344 1,685 1,215 1,432
19,165 17,241 20,351 13,752 14,316
1,594 1,498 1,720 1,148 994
2,104 1,795 2,140 1,388 1,493
717 630 758 520 626
340 332 417 296 346
4,755 4,255 5,035 3,352 3,459
417 395 451 302 282
551 474 561 366 423
188 166 199 137 178
89 87 109 78 98
1,245 1,122 1,320 883 981
3,125 2,678 3,478 2,867 40,415
3,182 4,029 4,032 3,893 51,418
1,294 1,380 1,788 1,712 19,405
611 707 779 557 9,699
8,212 8,794 10,077 9,029 120,937
763 649 848 691 9,905
777 977 983 938 12,595
316 335 436 412 4,750
149 171 190 134 2,375
2,005 2,132 2,457 2,175 29,625
207 174 229 185 2,642
211 261 265 252 3,364
86 90 118 111 1,273
40 46 51 36 634
544 571 663 584 7,913
Source: Lonsum, May 2016
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Table 9: Estimated Production of Certified CPO and PK
FFB Production (ton) Month 2016 May June July August September October November December 2017 January February March April Total
Dolok
Bah Lias
Bah Bulian
Si Bulan
Palm Oil (MT) Total
Bah Lias
Dolok
Bah Bulian
PK (MT) Si Bulan
Total
Dolok
Bah Lias
Bah Bulian
Si Bulan
Total
3,825 5,993 4,119 4,819 6,210 4,755 4,744 5,167
5,714 6,927 9,645 8,734 7,780 5,576 5,437 7,280
1,386 2,775 1,395 1,983 2,865 2,775 3,336 3,304
779 1,265 1,230 1,186 1,515 996 971 1,296
11,704 16,960 16,389 16,722 18,370 14,102 14,488 17,047
952 1,492 1,026 1,200 1,546 1,184 1,181 1,287
1,423 1,725 2,402 2,175 1,937 1,388 1,354 1,813
345 691 347 494 713 691 831 823
194 315 306 295 377 248 242 323
2,914 4,223 4,081 4,164 4,573 3,511 3,608 4,246
239 375 257 301 388 297 297 323
357 433 603 546 486 348 340 455
87 173 87 124 179 173 208 207
49 79 77 74 95 62 61 81
732 1,060 1,024 1,045 1,148 880 906 1,066
2,474 2,394 3,164 2,732 50,396
2,843 4,111 4,125 3,526 71,698
1,433 1,523 1,902 1,797 26,474
689 646 734 646 11,953
7,439 8,674 9,925 8,701 160,521
616 596 788 680 12,548
708 1,024 1,027 878 17,854
357 379 473 448 6,592
171 161 183 161 2,976
1,852 2,160 2,471 2,167 39,970
155 150 198 171 3,151
178 257 258 220 4,481
90 95 119 112 1,654
43 40 46 40 747
466 542 621 543 10,033
Source: Lonsum, May 2016
The FFB only comes from Dolok, Bah Lias, Bah Bulian and Si Bulan Estate, therefore Dolok Mill used RSPO Supply Chain Identity Preserved Model – Module D. Based on the above figures, the estimated of certified CPO and PK offered in period May 2016 – April 2017 for 1st surveillance audit are: Estimated tonnage of certified CPO produced Estimated tonnage of certified PK produced
39,970 MT 10,033 MT
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1.9
Other certificates held Table 10: Certificates Held by Mill and Estates MILL/ESTATE
Dolok Mill, Dolok Estate, Bah Lias Estate, Bah Bulian Estate, Si Bulan Estate
OTHER CERTIFICATION HELD ISPO by PT SAI Global Indonesia FMS40035, valid through 8 May 2020
Source: Lonsum, May 2016
1.10
Organizational information/contact person
PT. PP London Sumatera Indonesia Tbk. Jl A. Yani No.2 Medan 20111 Phone : (+62-61) 4532300 Fax : (+62-61) 45504621 Contact person : Mr Muhammad Waras Head of Environmental and CSR Email :
[email protected] 1.11
Time bound plan for other management units
PT. PP London Sumatra Indonesia Tbk. is committed to RSPO certification of all its Management Units located in North Sumatera, South Sumatera and East Kalimantan. Time bound plan has been developed to achieve the RSPO certification for all its Management Units and Plasma by 2016. The time bound plan is realistic and challenging. The plan is detailed on Table 5. Table 11: RSPO Certification Time Bound Plan Name of Mill Turangie
Dolok
Gunung Malayu
Begerpang
Mill Address
Langkat, Sumatera Utara Batubara, Sumatera Utara
Asahan, Sumatera Utara Deli Serdang, Sumatera
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Name of Supply Base Plantation Turangie Pulo Rambong Bungara Dolok Sibulan Bah Bulian Bah Lias Gunung Malayu Sei Rumbiya Begerpang Sei Merah
Estate Address
Time Bound
Remarks
Langkat, Sumatera Utara
2014
Certified on 9 January 2015
Batubara, Sumatera Utara Serdang Bedagai, Sumatera Utara Simalungun, Sumatera Utara Asahan, Sumatera Utara Labuhanbatu, Sumatera Utara Deli Serdang, Sumatera Utara
2014
Certified on 19 August 2015
2014
Certified on 23 July 2015
2014
Certified on 10 August 2015
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Name of Mill
Mill Address
Utara Pahu Makmur Belani Elok
Arta Kencana Sei Lakitan
Gunung Bais Terawas
Kutai Barat, Kalimantan Timur Musi Rawas, Sumatera Selatan
Lahat, Sumatera Selatan Musi Rawas, Sumatera Selatan Musi Rawas, Sumatera Selatan Musi Rawas, Sumatera Selatan
Name of Supply Base Plantation Rambong Sialang Pahu Makmur Isuy Makmur Kedang Makmur Belani Elok Bukit Hijau Batu Cemerlang Ketapat Bening Sei Kepayang Arta Kencana Kencana Sari
Estate Address
Serdang Bedagai, Sumatera Utara Kutai Barat, Kalimantan Timur
Time Bound
2015
Remarks
Stage-1 audit in December 2014 Certified in September 2015
Musi Rawas, Sumatera Selatan
2014
Lahat, Sumatera Selatan
2015
Sei Lakitan Riam Indah Sei Gemang Gunung Bais
Musi Rawas, Sumatera Selatan
2015
Musi Rawas, Sumatera Selatan
2016
Stage-1 audit in October 2015 Stage-1 audit in December 2015 -
Eka Sari Region (Plasma)
Musi Rawas, Sumatera Selatan
2016
-
Source: Lonsum, May 2016
1.12
Partial Certification Requirements
The organisation conducted the site visit and reviewing regarding no replacement of primary forest or any area identified as containing High Conservation Values (HCVs) or required to maintain or enhance HCVs in accordance with RSPO criterion 7.3, land conflict, labour disputes and legal noncompliance to all management units which have not been certified to ensure that partial certification requirements were fulfilled. Site visit was conducted by the organisation for ensuring compliance against partial certification requirements according to RSPO Certification System clause 4.2.4: PT PP London Sumatra Indonesia Tbk: Terawas Indah Mill and their supply bases on 17 November 2015 PT PP London Sumatra Indonesia Tbk: Gunung Bais Mill and their supply bases on 18 November 2015 Based on the reviewing it was concluded that: There was no replacement of primary forest or any area identified as containing High Conservation Values (HCVs) or required to maintain or enhance HCVs in accordance with RSPO criterion 7.3. There were no land conflict and labour disputes There was no non-compliance with regulations.
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1.13
Date of issue of certificate and date of previous assessment
Date of issue of certificate: 19 August 2015 Date of previous audit: 21 – 24 April 2014
2.0 2.1
AUDIT PROCESS
Certification body
PT. SAI Global Indonesia Graha Iskandarsyah, 4th floor Jl. Iskandarsyah Raya No. 66 C Kebayoran Baru, Jakarta 12160, Indonesia Phone : +62 21 720 6186, 720 6460 Fax : +62 21 720 6207 Contact person : Ms Inge Triwulandari Technical Manager Email :
[email protected] SAI Global is one of the world’s leading business providers of independent assurance. SAI Global provides organisations around the world with information services and solutions for managing risk, achieving compliance and driving business improvement. We provide aggregated access services to Standards, Handbooks, Legislative and Property publications; we audit, certify and register your product, system or supply chain; we facilitate good governance and awareness of compliance, ethics and policy issues and provide training and improvement solutions to help individuals and organisations succeed. The SAI Global business is driven by two equally important client needs - the mandated need for organisations to conform to regulations, standards and legislation in all their locations, and the operational need for organisations to improve business processes and procedures as well as corporate culture. As we are a global company, we can meet these needs for any client - those operating within one country's borders and in one language or those operating across borders and in many languages. There are three business units/divisions within SAI Global namely the Information Services Division, the Compliance Division, and the Assurance Division. The Assurance Division helps organisations manage risk, achieve process or product certification and drive improvement by providing training, registration audits and supplier management programs that can improve business performance. We provide independent audits, assessments and certification of your products or business processes to ensure they comply with industry standards or customer specific requirements. We understand how compliance with those standards can improve the efficiency, economy and profitability of your operation. With auditing and assessment staff located around the world, our clients include large global corporations as well as single site organisations. 2.2
Audit methodology
The Surveillance Audit was performed on 23 – 27 May 2016 integrated with ISPO Peraturan Menteri Pertanian #19/Permentan/OT.140/3/2011. The audit programme was included in the body of report. The audit methodology for collection of objective evidences is site inspection,
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documentation and record review and interview with staffs, workers, and other stakeholders. Objective evidences from documentation/record review in one area may also be cross checked with other objective evidences in other areas and with the evidence of implementation on site during the audit. During the audit, particular attention has been paid to previous non-conformities. The previous major and minor non-conformities were checked for being closed. Assessments plan has included but not be limited to areas of potential environmental and social risk. Considering previous audit findings, the mill and supply base were audited during this surveillance audit. Audit has paid special attention on some potential risks in the following areas: - All environment aspects of P&C including reporting of environmental management, waste handling (Dolok Mill and Dolok, Bah Lias, Bah Bulian and Si Bulan Estate) - All social aspects of P&C including land conflict issue (if any), customary right, labour issue, organization contribution (CSR program, empowerment of local community) (Dolok Mill and Dolok, Bah Lias, Bah Bulian and Si Bulan Estate) - All HCV aspects of P&C including identification, management and monitoring HCV (Dolok Mill and Dolok, Bah Lias, Bah Bulian and Si Bulan Estate). Audit plan is available in Appendix A of this report on page 173. 2.3
Qualification of the lead auditor and audit team member
Ria Gloria – Lead Auditor and audited mill and estate operation, legal aspect and SC Ria Gloria graduated with Bachelor of Chemical Engineering from Bandung Institute of Technology in 1994. She has working experience as Environmental Consultant for many years. She has completed ISO 14001 (1995), ISO 9001 (2004), RSPO P&C (2009) lead auditor training courses, RSPO SCCS (2010), ISPO (2012) lead auditor training courses. Supply Chain (2016) lead auditor training courses. For the last 11 years she has been involved in quality (ISO 9001) and environmental (ISO 14001) management system audits for very broad industrial and in the palm oil sector since 2003 for several plantations and mills. She has received training for good agricultural practices including integrated pest management and high conservation value (2008-2009). Mujinius Jalaraya – Audit Team Member and audited HCV and Social Aspect Mujinius Jalaraya, Bachelor from Faculty of Forestry, Bogor Agricultural University (IPB) in 2008, Majoring in Forest Resources Conservation. He has a working experience in palm oil plantations as SHE Assistant at PT. Astra Agro Lestari Tbk in 2008 - 2012 and as Supervisor Sustainability at Teladan Prima Group in 2012 – 2014. He joined the SAI Global since April 2014 as Auditor ISO 9001: 2008, ISPO and RSPO. Various training has followed, such as : Supply Chain Lead Auditor Courses (2016), Lead Auditor ISO 9001: 2008 Training (2014), Auditor ISPO Training (2014), Lead Auditor RSPO Training (2014), HCV Assessor Training (2013), Internal Auditor ISO 14001: 2004 Training (2013 ), Training for Trainers (2013), Training OHS Expert/Ahli K3 Umum (2010), etc. He has much experience in application of quality management system, environmental and OHS management system in the company and much involved in audit of the management system. During work at SAI Global he has had experience for audit ISO 9001: 2008 in various industries and services, RSPO and ISPO audit for several oil palm plantation companies. Daniel Sitompul – Audit Team Member and audited OHS Aspect Daniel Sitompul graduated with Bachelor of Chemical Engineering degree from Indonesia Institute of Technology in 1995. He has working experience as Quality, Environment and Safety Consultant for many years. He has completed ISO 14001 (2007), OHSAS 18001 (2010), Ahli K3 Umum (2007), ISO 9001 (2009), RSPO PC Training (2013), Auditor SMK3 (2013) dan ISPO Auditor
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Training (2013). He has also completed the training form government regarding to Safety Management System (SMK3), PROPER and AMDAL (environment). For the last 5 years he has been involved in quality (ISO 9001), Safety (OHSAS 18001) and environmental (ISO 14001) management system consultancy and audits for very broad industrial and in the palm oil sector since 2013 for several plantations and mills. Fitria Rahmayanti – Audit Team Member and audited Environmental and OHS Aspect Fitria Rahmayanti owned bachelor degree majoring health nutrition from Gadjah Mada University. She has experience as nutritionist at hospital in Jakarta. She joined SAI Global Indonesia in 2012. She has followed the lead auditor training ISO 9001:2008 (2012), ISO 14001:2004 (2012), lead auditor training ISPO (2013) also registered in local government ministry of manpower AK3U. She is also the ISPO auditor who has obtained a certificate from the ISPO Commission, Ministry of Agriculture of Indonesia, in February 2013.
2.4
Stakeholder consultation
Stakeholder consultation was performed to internal and external stakeholders. Internal stakeholders included staffs and workers. External stakeholders were selected by considering that they have an interest in the organisation activities, directly border with organisation, area where the workers live. External stakeholders included NGO, government and civil societies. Letters were also sent to external stakeholders to invite for comment or individual / group discussion. Group and individual discussions with stakeholders (Table 12) were conducted during audit, to verify compliance against relevant criteria and indicator related to land status and conflict, environmental, social aspect and HCV. Surrounding village of estate and mill has been chosen to represent societies. Group and individual discussions were conducted for two sessions. First session was conducted especially for around stakeholder directly affected on estate and mill, i.e. Head of village, farmers. Second session was conducted especially for labour union, gender committee and selected workers. Group interview was conducted for workers with similar job while others were interviewed individually in the scope to verify compliance against relevant criteria and indicator related to infrastructure facility, labour, social aspect (discrimination and sexual harassment), environment and HCV. The result of stakeholder consultation used to justify fulfilment of some indicators, e.g. criterion 2.2 indicator major 3, minor 1 and minor 2, criterion 2.3 indicator major 1, criterion 6.5 indicator minor 1, criterion 6.6 indicator minor 1, criterion 6.7 indicator minor 1, criterion 6.8 indicator minor 1, criterion 6.9 indicator minor 1, 2 and 3, criterion 6.10 indicator minor 1 and 2, criterion 6.11 indicator minor 1, etc. The result of these consultations was provided in Appendix D on page 212. Table 12: List of internal and external stakeholders STAKEHOLDERS
METHOD OF CONSULTATION
Internal stakeholder (mill and estates) Head of SPSI Head of Gender Committee Workers
Individual discussion Group Discussion Group discussion for workers with similar role, otherwise individually interviewed
External Stakeholder (mill and estates) Head of Village: Doc ID: 3843 / Issue Date May, 2014
Group discussion
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- Dolok - Si Bulan - Bah Bulian Transmigration and Labour Department of Kab. Simalungun, Batubara and Serdang Bedagai Agriculture and Plantation Department of Kab. Simalungun, Batubara and Serdang Bedagai Environmental Agency of Kab. Simalungun, Batubara and Serdang Bedagai National Land Agency (BPN) of Kab. Simalungun, Batubara and Serdang Bedagai Sub District Head (Camat) of Lima Puluh, Bandar, Se Balai, Bosar Maligas District Police of Bandar GAPKI AMAN (Aliansi Masyarakat Adat Nusantara) WWF Indonesia Sawit Watch
2.5
An invitation letter to comment was sent An invitation letter to comment was sent An invitation letter to comment was sent An invitation letter to comment was sent An invitation letter to comment was sent An invitation letter to comment was sent An invitation letter to comment was sent An invitation letter to comment was sent An invitation letter to comment was sent An invitation letter to comment was sent
Date of next surveillance visit
The next surveillance visit will be conducted around May 2017 three months before datum month of the certification period.
3.0 3.1
AUDIT FINDINGS
Action taken on previous audits findings
All non-conformances (Major and Minor) from the previous audits have been followed up by taking corrective actions. Corrective actions have been implemented and verified. All corrective actions were considered as closed satisfactorily. However there was recurrence of NC in Supply Chain Clause D.2.2. 3.2
Claim and use of certification mark and or logo
CPO and PK were sold under Green Palm. The organisation did not register the transaction in eTrace (Refer to NCR 2016-20). During 2015 the organisation did not record and balance CPO and PK certificate sales for each mill, but overall record for PT PP London Sumatera and started recorded for each individual mill on 2016. The data is presented in Table 13a to d below. Table 13a: Green Palm CPO Certificate Sales 2015 – all PT PP London Sumatera DATE
VOLUME (MT)
6-May-15
10.346
8-May-15
200
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BUYER
REF
Fritolay (A Division of Pepsico)
11670
Kappus Seifen GmbH Riesa & Co Kg
11681
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DATE
VOLUME (MT)
8-May-15
25
11-May-15
BUYER
REF
Natra SA
11683
2.000
Beiersdorf AG
11689
12-May-15
2.775
Vandemoortele Group
11717
19-May-15
3.731
Procter & Gamble
11742
4-Jun-15
4.848
Fritolay (A Division of Pepsico)
11820
4-Jun-15
152
Fritolay (A Division of Pepsico)
11821
4-Jun-15
25
Farmo SPA
11828
5-Jun-15
1.400
AB Foods & Beverages (Thailand) Ltd.
11829
5-Jun-15
100
Daudruy Van Cauwenberghe Et Fils
11830
11-Jun-15
893
Van Delft Biscuits BV
11862
18-Jun-15
250
Advanced Liquid Feeds Ltd
11894
24-Jun-15
1.520
Sodexo
11931
24-Jun-15
10.978
Unilever Supply Chain Company AG
11968
24-Jun-15
1.500
Agro Supply A/S
11977
3-Jul-15
1.132
Frieslandcampina
12080
7-Jul-15
420
Advanced Liquid Feeds Ltd
12106
7-Jul-15
45
Advanced Liquid Feeds Ltd
12107
22-Jul-15
1.535
Conagra Foods Inc
12164
22-Jul-15 15-Sep-15
1.000 6.946
Conagra Foods Inc Fritolay (A Division of Pepsico)
12168 12472
15-Sep-15 15-Sep-15 15-Sep-15 15-Sep-15 16-Sep-15 28-Sep-15
3.054 125 619 570 25 500
Fritolay (A Division of Pepsico) Fritolay (A Division of Pepsico) Fritolay (A Division of Pepsico) Fritolay (A Division of Pepsico) Maymo Cosmetics S.A Lantmannen Unibake Sweden AB
12473 12474 12475 12476 12490 12579
30-Sep-15 30-Sep-15 2-Oct-15 6-Oct-15 6-Oct-15 6-Oct-15
200 3,800 450 1,000 1,000 550
Daudruy Van Cauwenberghe Et Fils Ulker Biskuvi Sanayl A.S Advanced Liquid Feeds Ltd Fiska Molle AS PT Brahma Binabakti Oy Karl Fazer AB
12603 12604 12631 12641 12644 12656
6-Oct-15 6-Oct-15 6-Oct-15 6-Oct-15 8-Oct-15 13-Oct-15
2,375 25 2,477 123 2,000 50
Oy Karl Fazer AB Nuova Ruggeri SRL Fritolay (A Division of Pepsico) Fritolay (A Division of Pepsico) Fritolay (A Division of Pepsico) Nove Alpi SRL
12661 12662 12663 12664 12667 12750
13-Oct-15 20-Oct-15 22-Oct-15 22-Oct-15
2,950 3,000 1,252 300
AB Mauri (UK) Limited Procter & Gamble Procter & Gamble Daudruy Van Cauwenberghe Et Fils
12753 12814 12828 12833
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VOLUME (MT)
DATE
BUYER
REF
22-Oct-15 3-Nov-15
2,700 2,000
Nevedi (Dutch Feed Industry Association) Procter & Gamble
12836 12939
3-Nov-15 3-Nov-15 4-Nov-15 4-Nov-15 4-Nov-15 19-Nov-15
25 75 74 68 3,360 1,000
Carecos Kosmetik GmbH Advanced Liquid Feeds Ltd Dulcesa S.L. Unipersonal Culinary Arts Specialties, Inc Fritolay (A Division of Pepsico) Daudruy Van Cauwenberghe Et Fils
12946 12948 12949 12951 12952 13107
30-Nov-15 2-Dec-15 2-Dec-15 2-Dec-15 10-Dec-15 10-Dec-15
900 100 1,200 25 3,675 2,000
PT Salim Ivomas Pratama Tbk (Refinery) Valio Ltd Kaka AB The Belgian Chocolate Group NV Mondelez Europe GmbH Kerry Foods Limited
13199 13252 13253 13254 13392 13407
10-Dec-15 10-Dec-15 10-Dec-15 11-Dec-15 15-Dec-15 15-Dec-15
938 200 1,862 331 5,000 4,028
Delhaize Group SA/NV Qualityfoodgroup Spa Colgate Palmolive Company Cadbury India Limited Mondelez Global LLC Mondelez Global LLC
13410 13412 13422 13435 13453 13456
15-Dec-15 15-Dec-15 15-Dec-15
4,191 100 709
Mondelez Global LLC Gala Kerzen GmbH Moi International (Aust) Pty Ltd
13458 13459 13460
TOTAL
112,827
Table 13b: Green Palm PKO Certificate Sales 2015 – all PT PP London Sumatera DATE
VOLUME (MT)
BUYER Unilever Supply Chain Company AG
REF
12507
24-Jun-15
5.000
22-Sep-15
887
30-Sep-15
500
Colgate Palmolive Company Unilever Supply Chain Company AG
2-Oct-15
495
KAO Corporation
12624
6-Oct-15
500
Fritolay (A Division of Pepsico)
12665
8-Oct-15
250
Saraya Co Ltd
12690
9-Oct-15
500
Givaudan Suisse SA
12709
12-Oct-15
760
Beiersdorf AG
12740
12-Oct-15
500
Beiersdorf AG
12742
9-Nov-15
25
Pagen AB
12998
9-Nov-15
25
Pagen AB
12999
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11976
12600
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12-Nov-15
510
18-Nov-15 18-Nov-15 TOTAL
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L'Oreal
13060
2.179
Colgate Palmolive Company
13071
704
Colgate Palmolive Company
13072
12,835
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3.3 Description of audit findings 3.3.1
RSPO Principle and Criteria
PRINCIPLES 1: COMMITMENT TO TRANSPARENCY NO 1.1 1.1.1
CRITERION / INDICATOR OBSERVATIONS & OBJECTIVE COMPLIANCE SUMMARY OF FINDINGS FOR EACH INDICATOR CHECKLIST EVIDENCE (YES/NO) Growers and millers provide adequate information to relevant stakeholders on environmental, social and legal issues relevant to RSPO Criteria, in appropriate languages and forms to allow for effective participation in decision making. There shall be evidence that growers and millers provide adequate information on (environmental, social and/or legal) issues relevant to RSPO Criteria to relevant stakeholders for effective participation in decision making. Specific Guidance: For 1.1.1: Evidence should be provided that information is received in appropriate form(s) and language(s) by relevant stakeholders. Information will include information on the RSPO mechanisms for stakeholder involvement, including information on their rights and responsibilities. a. Does the company maintain a list of YES List of stakeholder, last updated Organization has defined list of stakeholder and updated once a year, last updated stakeholders? (E.g. listed by category in May 21st, 2016 both in Si Bulan Estate, Bah Bulian Estate, Dolok Estate and (Minor NCR in May 21st, 2016 and stakeholders listed should be site Dolok Mill. Stakeholder information which was updated such as contact person, 2016-01 Communication procedure specific) name of institution, address and phone number. closed) (EMS-P05), date on 10 August b. What is the frequency of updating the Stakeholder verification has been performed by organization through visiting and 2009 stakeholder list? contacting stakeholders directly, if there is a change then immediately will be Public consultation and updated. It was sighted that stakeholder verification has been done and evidenced. interview with stakeholder in c. Is there evidence of stakeholder th th May 23 – 25 , 2016 verification? Information provided to public and stakeholder specified in social communication d.
What type of information is provided? (E.g. Environmental, social and legal)
e.
What is the frequency and level of access to this information?
f.
How and where is the information disseminated?
g.
Who is responsible for providing & updating information?
h.
Is there an SOP available to describe the process (of information
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Field observation and interview with employee
procedures -Communication procedure (EMS-P05), date on 10 August 2009. Information regarding environmental, social and legal was provide for stakeholder based on their needs since it relevant such as: Plan for social and environmental impact assessment, Occupational health and safety plan, Plan for the reduction and prevention of pollution, Company policy, Certificate/land use rights, HCV management plan, FF price, etc. Information was confidential and restricted for stakeholder such as: financial information. Documents available to the public and stakeholder can be provided to stakeholders according to their relevance through a written request to the organization. The information most frequently requested by stakeholders are information related to the management of occupational helath and safety (P2K3 report) - Disnakertrans,
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CRITERION / INDICATOR CHECKLIST sharing/dissemination)?
NO i.
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR environmental management report (wastewater, LB3) - BLH, employment report Disnakertrans, production data and area statements - BPS, etc.
Are stakeholders aware of the type of information available and the procedures for accessing the information?
Organisation has performed the stakeholder meeting on June and July 2014 to discuss regarding corporate social responsibility program and to enhance relationship between company and stakeholder. However Information provided to the public and stakeholder has not been disseminated to the stakeholder by organisation. Organization has assigned a responsible person for providing and updating information and stakeholder that was Humas/KTU. Responsibility and function was described in Humas/KTU job description. SOP to describe the process of information sharing/dissemination defined in social communication procedure EMS-P05 dated 10 August 2009. Consultation and communication with stakeholders conducted by collecting community leaders, village heads and local community or visiting the office/the village hall to meet with the village head, village officials and community. Stakeholders do not aware regarding the type of information available and the procedures for accessing the information. It was verified during public consultation and interview with stakeholder in May 23th 2016. Minor Non-conformance 2016-01 : -
1.1.2
No evidence that organisation has communicated to stakeholder related public information which available and defined in Communication procedure (EMSP05), date on 10 August 2009
(M) Records of requests for information and responses shall be maintained. Guidance: Growers and millers should have a Standard Operating Procedure (SOP) to respond constructively to stakeholders, including a specific timeframe to respond to requests for information. Growers and millers should respond constructively and promptly to requests for information from stakeholders. Growers and millers should ensure that sufficient objective evidence exists to demonstrate that the response is timely and appropriate. See Criterion 1.2 for requirements relating to publicly available documentation. See Criterion 6.2 on consultation. See Criterion 4.1 on SOPs.
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a.
CRITERION / INDICATOR CHECKLIST Does the company have an SOP to ensure constructive response to stakeholders?
b.
Who is the personnel in charge (PIC)?
c.
Does the SOP cover the elements under 1.1.1?
d.
Is there a clear time frame for response to request for information?
e. f.
NO
OBSERVATIONS & OBJECTIVE EVIDENCE Communication procedure (EMS-P05), date on 10 August 2009 Log Book: Notes of society and stakeholders aspirations and the information request record 2015 and 2016
SUMMARY OF FINDINGS FOR EACH INDICATOR Organization has defined the procedure to ensure constructive response to stakeholders in Procedure Communication EMS-P05 dated 10 August 2009. Procedure described the requests for information and the aspirations of stakeholders.
Are records of requests for information and responses maintained?
Public consultation with stakeholders and the local community May 23th – 25th, 2016
Requests for information can be submitted in writing to the organization, all the information and aspirations will be addressed by organization with consideration couple of things before information and aspiration was rejected or approved. Responses can be handled directly by Managers, but if necessary coordination and consideration of management, information passed on to the public. The initial response was given no later than one month after receipt of the request from stakeholders.
Are responses to requests for information timely and appropriate?
Field observation and interview with employee
PIC whos tasked associated with social communication are Estate manager with the daily implementing are Humas. This procedure already covers elements 1.1.1.
COMPLIANCE (YES/NO) YES
Clear time frame for response to request for information has been explain above; The initial response was given immediately after receipt of the request from stakeholders. Records of information requests and aspirations documented in the Log Book: Notes of society and stakeholders aspirations and the information request record. Records of requests for information and responses were well maintained by the document controller. Organization responses to requests for information can be demonstrated and archived properly. The responses to requests for information were timely and appropriate. Some example for information request and responses were verified during audit. 1.2 1.2.1
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. (M) Publicly available documents shall include, but are not necessarily limited to: • Land titles/user rights (Criterion 2.2); • Occupational health and safety plans (Criterion 4.7); • Plans and impact assessments relating to environmental and social impacts (Criteria 5.1, 6.1, 7.1 and 7.8); • HCV documentation (Criteria 5.2 and 7.3); • Pollution prevention and reduction plans (Criterion 5.6);
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NO • • • • •
CRITERION / INDICATOR OBSERVATIONS & OBJECTIVE CHECKLIST EVIDENCE Details of complaints and grievances (Criterion 6.3); Negotiation procedures (Criterion 6.4); Continual improvement plans (Criterion 8.1); Public summary of certification assessment report; Human Rights Policy (Criterion 6.13).
SUMMARY OF FINDINGS FOR EACH INDICATOR
COMPLIANCE (YES/NO)
Guidance: This concerns management documents relating to environmental, social and legal issues that are relevant to compliance with RSPO Criteria. Management documents will include monitoring reports. The auditors will comment on the adequacy of each of the documents listed in the public summary of the assessment report. Examples of commercially confidential information include financial data such as costs and income, and details relating to customers and/or suppliers. Data that affects personal privacy should also be confidential. Ongoing disputes (within or outside of a legal mechanism) can be considered as confidential information where disclosure could result in potential negative outcomes for all parties involved. However, affected stakeholders and those seeking resolution to conflict should have access to relevant information. Examples of information where disclosure could result in potential negative environmental or social outcomes include information on sites of rare species where disclosure could increase the risk of hunting or capture for trade, or sacred sites which a community wishes to maintain as private. Growers and millers should ensure that sufficient objective evidence exists to demonstrate that the level of measuring and monitoring of the management plan, and information, is appropriate and made available. For National Interpretation: Specific approaches to personal privacy safeguards, including any legal requirements, will be considered. a. How are the management documents Documents available to the public specified in the Procedure Communication EMSYES Communication procedure listed in (c) below made publicly available? P05 dated 10 August 2009. Documents available to the public and stakeholder can (EMS-P05), date on 10 August be provided to stakeholders according to their relevance through a written request 2009 b. Where are the documents placed? to the organization. List of information available in Indonesian and easily understood Record of report form receipts c. Is the information provided adequate? by stakeholder. 2015 and 2016 Note: At minimum, an information Documents available to the public placed in the respective sections within the Public consultation with summary of the document listed below organization. Such as land title right/ HGU certificate placed in KTU and other stakeholders and the local should be made available. th th community May 23 – 25 , Information provided adequate at minimum, an information summary of the Land titles/user rights (Criterion 2.2) 2016 document listed such as : Legal boundaries ,land use, Field observation and interview classification, total area, grant Land titles/user rights (Criterion 2.2) with employee title, permit validity , NCR rights, Legal boundaries ,land use, classification, total area, grant title, Occupational health and safety plans permit validity , NCR rights (Criterion 4.7); risk assessment and mitigation, Occupational health and safety plans (Criterion 4.7);
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NO
CRITERION / INDICATOR CHECKLIST emergency response plan, training, accident records Plans and impact assessments relating to environmental and social impacts (Criteria 5.1, 6.1, 7.1 and 7.8); main social and environmental impacts and mitigation measures, HCV documentation (Criteria 5.2 and 7.3); identification on HCV areas, maps, management and monitoring HCV Pollution prevention and reduction plans (Criterion 5.6); identification of pollutants, management and reduction measures Details of complaints and grievances (Criterion 6.3); nature of complaints, parties involved, status of case Negotiation procedures (Criterion 6.4); SOP, consultative, neutral, inclusiveness, timeframe, responsibility Continual improvement plans (Criterion 8.1); for all elements under 8.1, Public summary of certification assessment report; follow RSPO format Human Rights Policy (Criterion 6.13).
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OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR
Plans and impact assessments relating to environmental and social impacts (Criteria 5.1, 6.1, 7.1 and 7.8); -
for all elements under 8.1,
Public summary of certification assessment report; -
SOP, consultative, neutral, inclusiveness, timeframe, responsibility
Continual improvement plans (Criterion 8.1); -
nature of complaints, parties involved, status of case
Negotiation procedures (Criterion 6.4); -
identification of pollutants, management and reduction measures
Details of complaints and grievances (Criterion 6.3); -
identification on HCV areas, maps, management and monitoring HCV
Pollution prevention and reduction plans (Criterion 5.6); -
main social and environmental impacts and mitigation measures,
HCV documentation (Criteria 5.2 and 7.3); -
risk assessment and mitigation, emergency response plan, training, accident records
follow RSPO format
Human Rights Policy (Criterion 6.13). -
policy statement should comply to the requirements of 6.13
Monitoring plan associated with public documents already established and available. For example for environmental documents: the management of HCV, RKL-RPL was reported every six months to BLH, reports related to the management of K3 (occupational health and safety) are reported every three months to Disnakertrans, reports LB3 and liquid waste are reported every three months to BLH, etc.
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NO
d. e.
CRITERION / INDICATOR CHECKLIST policy statement should comply to the requirements of 6.13 Do the management documents contain monitoring plans and reports?
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR Update monitoring report publicly available. Evidence of delivery of the report in the form of receipts properly documented and archived in a file Receipt.
Are all monitoring reports publicly available?
1.31
Growers and millers commit to ethical conduct in all business operations and transactions. *1 New Criteria - Growers and millers commit to ethical conduct in all business operations and transactions.
1.3.1
There shall be a written policy committing to a code of ethical conduct and integrity in all operations and transactions, which shall be documented and communicated to all levels of the workforce and operations. Guidance: All levels of the operations will include contracted third parties (e.g those involved in security). The policy should include as a minimum: • A respect for fair conduct of business; • A prohibition of all forms of corruption, bribery and fraudulent use of funds and resources; • A proper disclosure of information in accordance with applicable regulations and accepted industry practices. The policy should be set within the framework of the UN Convention Against Corruption, in particular Article 12. a. Is there a written policy committing to a Written policy committing to a code of ethical conduct and integrity in all operations “Pedoman Kebijakan code of ethical conduct and integrity in all and transactions was available in “Kebijakan Sustainable Perusahaan” dated 12 Manajemen Berkelanjutan” operations and transactions? September 2014. (Sustainability Policy – Decree #001/DIR/IX/2014, dated 12 b. Does the policy include as a minimum: Ethic policy includes several aspects, such as: September 2014) A respect for fair conduct of - Social Responsibility business? Policy socialization record to A prohibition of all forms of corruption, - Salary employee, contractor and bribery and fraudulent use of funds stakeholders 2015 and 2016 - Infrastructure and accommodation and resources? Public consultation with A proper disclosure of information in - Labour union stakeholders and the local accordance with applicable - Age of worker community May 23th – 25th, regulations and accepted industry 2016 practices? - Indiscriminative treatment Field observation and interview c. Is the policy documented and - Protection against sexual harassment and violence communicated to all levels of the
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YES
Audit Report
CRITERION / INDICATOR CHECKLIST workforce and operations, including contracted third parties? How is it communicated?
NO
d.
OBSERVATIONS & OBJECTIVE EVIDENCE with employee
Are the documentation and communication done in the appropriate languages?
Note to auditor: The workforce should be interviewed to determine level of understanding of policy
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR -
Protection of reproductive rights
-
Receipts and provision of gifts, entertainment or assistance in job, corruption and fraud
-
Relation with supplier
-
Occupational health and safety, and environment
-
Employee cooperatives
-
Human rights
The policy was well documented; latest revision dated 12 September 2014 has been communicated to all levels of the workforce and operations, including contracted third parties through socialization both active through master morning and passive by signboard. Policy socialization to contractor/third parties performed at the time of going to do the job. Documentation of policy and communication was done in the appropriate languages and easily understood by stakeholders.
PRINCIPLES 2: COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS
2.1
CRITERION / INDICATOR OBSERVATIONS & OBJECTIVE CHECKLIST EVIDENCE There is compliance with all applicable local, national and ratified international laws and regulations.
2.1.1
(M) Evidence of compliance with relevant legal requirements shall be available.
NO
SUMMARY OF FINDINGS FOR EACH INDICATOR
COMPLIANCE (YES/NO)
Guidance: Implementing all legal requirements is an essential baseline requirement for all growers whatever their location or size. Relevant legislation includes, but is not limited to: regulations governing land tenure and land-use rights, labour, agricultural practices (e.g. chemical use), environment (e.g. wildlife laws, pollution, environmental management and forestry laws), storage, transportation and processing practices. It also includes laws made pursuant to a country’s obligations under international laws or conventions (e.g. the Convention on Biological Diversity (CBD), ILO core Conventions, UN Guiding Principles on Business and Human Rights). Furthermore, where countries have provisions to respect customary law, these will be taken into account. Key international laws and conventions are set out in Annex 1 Contradictions and inconsistencies should be identified and solutions suggested.
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NO
CRITERION / INDICATOR OBSERVATIONS & OBJECTIVE SUMMARY OF FINDINGS FOR EACH INDICATOR CHECKLIST EVIDENCE For National Interpretation: All relevant legislation will be identified, and any particularly important requirements identified. a. Is the complete list of legal requirements The relevant legal requirement or regulations for mill and estate have been Legal requirements procedure available? (Refer to relevant NIs or LIs for established and identified. Copies of the legal requirements were shown and (EMS-P02 dated 10 August list of legal requirements) maintained properly. The regulations were regarding to permit of machinery, 2009) safety committee, safety officer, medical insurance, monitoring of working Evaluation of compliance b. Does the company have copies of the environment, monitoring of environmental aspect, paramedic and first aid officer, procedure (EMS-P09 dated 10 legal requirements? clinic for workers, handling of hazardous materials including pesticides, firefighting August 2009) team and equipment, minimum payment, Labor Union, BPJS, Management of Form EMS f-02a- Register of Note to auditor: A due diligence on the protected areas, conservation of natural resources and ecosystems, etc. SPO Regulation update company/area or management unit on legal February 2016 List of legal requirements was sighted on Register of SPO Regulation and compliance should be conducted prior to field Form EMS IA-C6- Evaluation of Evaluation on Compliance of Regulation and Requirements – EMS IA-C6) update audit. Any non-compliance should be verified Compliance with Laws and 5 October 2015. The new environment regulation was identified, such as during the field audit. Regulations PermenLH 5/2014 waste water quality standard and PP 101/2014 hazardous Relevant legislation includes, but is not limited Hazardous waste manifest waste management. to: regulations governing land tenure and land Result of environmental use rights, labour, agricultural practices (e.g. The copies of legal regulation was sighted on soft copy also on hard copy include monitoring and measurement chemical use), environment (e.g. wildlife laws, the environment regulation. List and Evaluation of Safety pollution, environmental management and and Health Legal Requirement forestry laws), storage, transportation and Records of Implementation: processing practices. It also includes laws Major Non-Conformance 2016-02: o Notes of Meeting Safety made pursuant to a country’s obligations under Committee Register permit/number from several pesticides store and use have not been international laws or conventions (e.g. the o Quarterly Safety provided, e.g. Antracol, Sevin, Benlox 50WP, Decis 2.5EC, Santador 25EC, Convention on Biological Diversity (CBD), ILO Performance Report Lindomin 865AS, Starane 200EC, Starlon 480EC, Dithane M-45 80WP, core Conventions and UN Guiding Principles on o Measurement Report of Smart 486 AS, Manuver 400 WC, Metaprima 20 WG. Business and Human Rights. OHS Parameters Vibration parameter has not been tested at Dolok Mill as required by related o Valid permit of lifting regulation Permenaker 13/2011 equipment, machinery etc. Advance boiler that operated at Dolok mill has not been approved by local o Valid permit of boiler authority Disnaker. operator and lifting Paramedic officer at Si Bulan and Bah Bulian Estate has not been trained equipment operator, etc. for Hiperkes and Work Safety as required by related regulation. o Medical Surveillance Lifting equipment at Si Bulan Estate has not been retested periodically Reports where they must have been tested before 12 Januari 2016. o Slip of Accident Insurance All daily workers (PHL) at Si Bulan, Bah Bulian, Dolok Estate and Dolok Mill Payment have not been covered by medical and accident insurance. (BPJS
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COMPLIANCE (YES/NO) YES (Major NCR 2016-02 closed)
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CRITERION / INDICATOR CHECKLIST
NO
OBSERVATIONS & OBJECTIVE EVIDENCE
2.1.2
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR Kesehatan and BPJS Ketenagakerjaan). There was no evidence that logbook of hazardous waste and environment report (RKL RPL) was reported to BLH Serdang Bedagai Regent for Si Bulan Estate, BLH Simalungun Regent for Bah Lias estates, BLH Batubara Regent for Dolok Mill and estate for period 2015 and January – March 2016 as required by permit. Licence of hazardous waste temporary storage at Bah Bulian Estate No.188.45/102/Sekrt-2014 dated 6 February 2014 was not cover for ex chemical container, whether there was stored ex chemical container.
A documented system, which includes written information on legal requirements, shall be maintained. a.
Is there a document system which includes the following? - Personnel in charge to manage - Set of legal documents - Comprehensive list of international, national, sub-national and provincial laws which details the requirements of specific to the mill and estate operations. - Relevant sections within the law that is identified and linked to activities
b.
Are the documents available to all levels of management?
Legal requirements procedure (EMS-P02 dated 10 August 2009) Evaluation of compliance procedure (EMS-P09 dated 10 August 2009) Form EMS f-02a- Register of SPO regulation Form EMS IA-C6- Evaluation of Compliance with Laws and Regulations Licence of hazardous temporary storage Licence of waste water discharge License of surface water utilization (SIPPA) RKL RPL reports List and Evaluation of Safety and Health Legal Requirement
Established procedure described mechanism for updating latest laws and regulations and required regular access to regulatory bodies to update information of laws and regulations. Update and compliance review against change of law and regulation was conducted periodically by Legal, Environment and CSR Department use internet access and communicate with local and national department. Applicable laws and regulations were registered in Form f-02a. The evaluation of compliance was conducted together with the relevant functions between Legal, Environment and CSR team and representative from estates and mill. Evaluation result of compliance with laws and regulations was recorded in Form EMS IA-C6. The communication to relevant functions was conducted by dissemination from Legal, Environment, and CSR Department to respected persons at mill and estate. The new environment regulation was identified, such as PermenLH 5/2014 waste water quality standard and PP 101/2014 hazardous waste management. The PIC to manage the compliance with OHS regulations was Safety Officer. List of applicable OHS regulations included the resume of requirements were available and maintained. The copies of the regulations were distributed to related section according to their evaluation. The administrator/document control in charge at estates/mill were handled several Licenses and reports as obligation on local requirements, such as: License of hazardous waste temporary storage (TPS B3) from Head of Batubara Regent No.660/99.a/TPS-LB3/LH/II/2014 dated 27 February 2014 valid for 5 years (Dolok Mill and Estate), BLH Simalungun Regent
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YES
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CRITERION / INDICATOR CHECKLIST
NO
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR No.188.45/101/Sekrt-2014 dated 6 February 2014 valid for 3 years (Bah Lias Estate), BLH Simalungun Regent No.188.45/102/Sekrt-2014 dated 6 February 2014 valid for 3 years (Bah Bulian Estate), BLH Serdang Bedagai Regent No.18.32/660/51/2014 dated 17 February 2014 valid for 3 years (Si Bulan Estate), License of waste water discharge (IPLC) from Head of Batubara Regent No.660/0260/BLH/IV/2013 dated 18 April 2013 valid for 3 years, renewal licence was submitted to BLH Batubara Regent No.36/DLPOM/KLHBB/III/2016 dated 22 March 2016 Licence of surface water utilization (SIPPA) from Kantor Pelayanan Perizinan Terpadu Batubara Regent valid until August 2017 (Dolok Mill and Estate), Badan Pelayanan Perizinan Terpadu Simalungun Regent valid through 4 December 2017 (Bah Lias Estate), Badan Pelayanan Perizinan Terpadu dan Penanaman Modal Serdang Bedagai Regent valid through June March 2017 (Si Bulan Estate), Badan Pelayanan Perizinan Terpadu Simalungun valid through 23 March 2020 (Bah Bulian Estate). Environment monitoring and measurement reports (RKL/RPL)
2.1.3
A mechanism for ensuring compliance shall be implemented. a.
2.1.4
Is an internal audit for legal compliance conducted annually and documented?
Internal audit ISPO RSPO on 11 April 2016 at Bah Bulian Estate, 12 April 2016 at Si Bulan Estate, 13 April 2016 at Dolok Estate and Mill, 14 April 2016 at Bah Lias Estate
Internal audit for legal compliance are conducted periodically (once in year) internal audit against the requirement of ISPO and RSPO standards include the legal compliance evaluation. The last audit was held on 11– 14 April 2016.
YES
There are also OHS internal audit planned annually. The last audit was conducted on 4-8 April 2016 by approved OHS auditor. The audit checklist covered the implementation of the all applied regulations. Status of compliance with the applicable laws and regulations were evaluated, and evaluation of compliance result indicated that compliance status was justified with reference to the objective evidence of compliance.
A system for tracking any changes in the law shall be implemented. Specific Guidance: For 2.1.4: The systems used for tracking any changes in laws and regulations should be appropriate to the scale of the organisation. a. Is there a documented methodology (e.g.: Legal Requirements Procedure The documented procedure was defined that the Legal, Environment, and CSR personnel in charge (PIC), source of info, Department was conducted identification, verification and registered the all legal (EMS-P02)
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YES
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NO
CRITERION / INDICATOR CHECKLIST frequency of update) for tracking changes and communication of changes to relevant sections of the legislation?
OBSERVATIONS & OBJECTIVE EVIDENCE Evaluation of compliance procedure (EMS-P09 dated 10 August 2009)
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR and other requirements. The update frequency was conducted every year that last updated in October 2015. The method of updating regulation was conducted by internet, email and/or by direct visits to the government bodies. The new environment regulation was identified, such as PermenLH 5/2014 waste water quality standard and PP 101/2014 hazardous waste management. The evaluation of compliance was conducted together with the relevant functions between Legal, Environment, and CSR Department and representative from estate and mills. The communication to relevant functions was conducted by dissemination from Legal, Environment, and CSR Department to respected persons at mill and estate. The evaluation of compliance with OHS regulations was conducted by Safety Officer and reported to Mill and estate managers. Valid applicable OHS regulations were registered including detail requirement applied. Sources for information of changed regulations and laws were identified such as government office or via internet. Updating OHS law and regulations changes were well documented. The changes of applicable legal and other requirements have been reviewed and socialized to workers.
2.2 2.2.1
The right to use the land is demonstrated, and is not legitimately contested by local people who can demonstrate that they have legal, customary or user rights. (M) Documents showing legal ownership or lease, history of land tenure and the actual legal use of the land shall be available. Guidance Where there is a conflict on the condition of land use as per land title, growers should show evidence that necessary action has been taken to resolve the conflict with relevant parties. A mechanism should be in place to resolve any conflict (Criteria 6.3 and 6.4). Where operations overlap with other rights holders, companies should resolve the issue with the appropriate authorities, consistent with Criteria 6.3 and 6.4. For National Interpretation: Any legal, customary or user rights to land, or disputes, which are likely to be relevant, will be identified. a. Are there documents showing legal Documents that showing legal ownership of land tenure and the actual legal use YES Land use title permit: SK HGU ownership or lease of the land available? of the land was available in the form of concession and HGU license document. and HGU certificate. (e.g. land titles, lease documents) Legal Department of PT PP London Sumatra Indonesia Tbk keeps the original Degree of State Minister for HGU documents, while Estates keep the copies of HGU certificate. Licenses b. Are there documents showing history of Agrarian Affairs / Head of document were available at Estates audited. Following are Plantation Operation land tenure available? (e.g. legal National Land Agency Permit and HGU reviewed during this audit: documents showing land status change, Plantation Operation SIA and EIA reports, HCV assessment Permit/Surat Pendaftaran
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CRITERION / INDICATOR CHECKLIST reports)
NO c.
Are there documents showing the actual legal use of the land available?
d.
Are the documents complete?
OBSERVATIONS & OBJECTIVE EVIDENCE Usaha Perkebunan (SPUP)
Plantation Business Assessment (Penilaian Usaha Perkebunan (PUP))
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR Bah Lias Estate
Degree of State Minister for Agrarian Affairs / Head of National Land Agency #64/HGU/BPN/97 dated 10 July 1997. Area: 4,052.16 Ha. Located at Bandar Sub-district, Simalungun District, Province of North Sumatera. Plantation Operation Permit/Surat Pendaftaran Usaha Perkebunan (SPUP) #HK.350/511/Dj.Bun.5/VII/2001, dated 15 July 2001. Plantation Business Assessment (Penilaian Usaha Perkebunan (PUP)); Class I, based on the Decree #188.45/4420/2012
Dolok Estate
HGU: 1.
2.
3.
Decree of the National Land Agency, no. 86/HGU/BPN/2005, HGU certificate no.1 dated 26 January 1982 and Decree of the State Minister of Agrarian Affairs / Head of BPN, no. 63/HGU/BPN/1997, dated 16 July 1997: Covering an area of 1,597.07 ha, Location: Village Perkebunan Sei Bejangkar Decree of the National Land Agency, no. 90/HGU/BPN/2005, HGU certificate no.1 dated 26 January 1982 and Decree of the State Minister of Agrarian Affairs / Head of BPN, no. 61/HGU/BPN/1997, dated 2 July 1997: Covering an area of 661.99 ha, Location: Village Perkebunan Sei Bejangkar Decree of the National Land Agency, no. 55/HGU/BPN/2005, HGU certificate no.1 dated 7 August 1984, covering an area of 931.73 ha, Location: Sub-district Bosar Maligas, District Simalungun.
Total area Dolok Estate is an area of 3,190.79 ha Plantation Operation Permit/Surat Pendaftaran Usaha Perkebunan (SPUP) 1. Plantation Operation Permit/Surat Pendaftaran Usaha Perkebunan (SPUP) #HK.350/198/Dj.Bun.5/III/2001, dated 16 March 2001. Area: 661.99 Ha. Located at Lima Puluh Sub-distric, Asahan District. 2. Plantation Operation Permit/Surat Pendaftaran Usaha Perkebunan (SPUP) #HK.350/510/Dj.Bun.5/VII/2001, dated 5 July 2001. Area: 931.73 Ha. Located at Simalungun District. 3. Plantation Operation Permit/Surat Pendaftaran Usaha Perkebunan Doc ID: 3843 / Issue Date May, 2014
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NO
CRITERION / INDICATOR CHECKLIST
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR
(SPUP) #HK.350/512/Dj.Bun.5/VII/2001, dated 5 July 2001. Area: 1,597.07 Ha. Located at Tanjung Tiram Sub-distric, Asahan District. Plantation Business Assessment (Penilaian Usaha Perkebunan (PUP)); Class II, based on the Decree #525/038.1/F Building Permit (IMB) for mill and housing: 1. #503/IMB/BPP/055/VII/2010 2. #503/73/SIMB/2007 3. #503/05/SIMB/2011
Bah Bulian Estate
Decree letter of National Land Agency Head #54/HGU/BPN/97 and # 53/HGU/BPN/2005, dated 16 May 2005; Area: 1,246.46 Ha, located in Simalungun District, North Sumatra Province. HGU certificate #1/Panduman dated 7 August 1984. (SPUP) #175/Mentanhut/VII/2001. Area: 2,246.46 Ha. Located at Raya Kahaean Sub-distric, Simalungun District. Plantation Business Assessment (Penilaian Usaha Perkebunan (PUP)); Class II, based on the Decree #188.45/4419/2012
Si Bulan Estate 2.2.2
Decree letter of BPN #57/HGU/BPN/97 and # 49/HGU/BPN/2005, area: 1,240.83 Ha, location: Deli Serdang District, Province of North Sumatera. HGU certificate #2/97 dated 8 October 1997 Plantation Operation Permit/Surat Pendaftaran Usaha Perkebunan (SPUP) #350/190Bun.5/III//2001, dated 16 March 2001. Area: 1,240.83 Ha. Located at Tebing Tinggi Sub-distric, Deli Serdang District. Plantation Business Assessment (Penilaian Usaha Perkebunan (PUP)); Class I, based on the Decree of Serdang Bedagai District Head in December 2012.
Legal boundaries shall be clearly demarcated and visibly maintained. Specific Guidance: For 2.2.2: Plantation operations should cease on land planted beyond the legally determined area and there should be specific plans in place to address such issues for associated
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NO
CRITERION / INDICATOR CHECKLIST smallholders.
a.
Is there a legal map showing location of boundary markers?
b.
Is there physical presence of boundary markers?
c.
Is there an SOP for boundary demarcation and maintenance?
Note to auditor: Ground verification of boundary markers using GPS should be conducted. Priority should be on boundaries with other estates, community areas, protected area and rivers In the case of Associated Smallholders: d. Are there documents showing that the boundaries of associated smallholders have been recorded and verified by the mill? e.
In case of boundary breach, is there proof of a mitigation plan being implemented?
OBSERVATIONS & OBJECTIVE EVIDENCE
Map of legal boundary HGU Point over Base Map Monitoring of HGU pegs OP 2.1 Procedure of The HGU – Preparation, Survey and Mapping Field Observation to HGU pegs
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR
Legal map showing location of boundary markers is documented in “HGU Point over Base Map”. The map described pegs number. HGU pegs observed were:
YES (Minor NCR 2016-03 closed)
#06 Block 03113003 Division 03 Dolok Estate (03°08' 12.81'' N and 099°34'33.28'' E) #21 Block 98112006 Division II Dolok Estate (03°09' 18.08'' N and 099°25'59.28'' E) #04 Block 00111001 Divion I Si Bulan Estate (03°15' 14.41'' N and 099°10'36.35'' E) #18 Block 95211010 Division I Si Bulan Estate (03°15' 05.68'' N and 099°10'11.85'' E) #30 Division II Bah Bulian Estate (03°11' 22.72'' N and 098°58'18.52'' E) #01 Division II Bah Bulian Estate (03°12' 25.01'' N and 098°58'41.52'' E)
Legal boundaries are clearly demarcated and maintained. All pegs were in good condition and maintained. Plantation activity such as upkeep and harvesting were conducted inside the border. Procedure of boundary pegs maintenance has been established. Estates has program to maintenance boundary pegs annually such as availability, condition and position of pegs. A review to legal boundaries maintenance records at Dolok, Si Bulan dan Bah Bulian Estate and field observation to a number of legal boundaries demonstrated that the legal boundaries were well maintained by Estates.Last activities of maintenance were conducted:
22 April 2016 in Bah Bulian Estate 12 April 2016 in Si Bulan Estate 4 – 6 January 2016 in Dolok Estate
Major Non-conformance 2016-03
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Bah Bulian Estate
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NO
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR Based on legal pegs monitoring on 22 April 2016, two pegs were not found, #5 and #7 however there was corrective action to complete the legal pegs.
2.2.3
Where there are or have been disputes, additional proof of legal acquisition of title and evidence that fair compensation has been made to previous owners and occupants shall be available, and that these have been accepted with free, prior and informed consent (FPIC). a.
Are there, or have there been any land disputes?
Note to auditor: Due diligence should be conducted on the management to provide evidence that there has been no historical or current land dispute b.
c.
If there are or have been disputes, are there: Documents to proof legal acquisition? Records of FPIC process? If there has been acquisition involving compensation, are there: Records that Fair compensation has been provided and accepted by parties involved? Records that all affected parties are consulted and represented? Documents of negotiations/discussion available?
Note to auditor: There should be direct verification of above with the affected parties
Public consultation with stakeholders and the local community May 23th – 25th, 2016
No complaints associated with land disputes between the company and the surrounding community. This was also confirmed during the public consultation with stakeholders and the local community on May 23th, 2016. Concession area of PT. Lonsum Indonesia is a former concession of PT. Harrisons & Crossfield (H&C). In 1908, H&C established Harrison & Crossfiled Plantation Ltd. H&C bought Gunung Malayu Estate in 1926. At the 1928 H&C bought Tjong Ah Fie Plantation including Rambong Sialang, Egaharap, Bengambing, Tanjoeng Poteri, Bandar Teloe, Suka Radjin, Nagaga, Maligas, Bolok, Bah Lias, Bah Hilang and Mardjandi. Based on Legal entities of PT. PP London Sumatera Indonesia Tbk. #93/1962 concession area including:
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Asahan Rubber Estate Limited is a Gunung Melayu Estate. The Bah Lias Rubber Estate Limited is a Bah Lias Estate Central Sumatra Rubber Estate Limited is a Turangi, Bungara and Pulau Rambung Estate. Namoe Tonga Rubber Estate Limited is a Turangi Estate The Sialang Rubber Estate Limited is a Rambong Sialang Estate The Soengei Rampah Rubber and Coconut Plantations Company Limited is a Rambong Sialang Estate The Tandjung Rubber Company Limited is a Sungai Merah Estate Toerangie (Sumatra) Rubber and Produce Estate Limited is a Turangi Estate The United Langkat Plantation Company Limited is a Turangi, Bungara and Pulau Rambung Estae The United Serdang (Sumatera) Rubber Plan Limited is Bagerpang, Sungai Merah and Dolok Estate.
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N/A
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CRITERION / INDICATOR CHECKLIST
NO
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR Land acquisition was conducted prior RSPO FPIC was required.
2.2.4
2.2.5
(M) There shall be an absence of significant land conflict, unless requirements for acceptable conflict resolution processes (see Criteria 6.3 and 6.4) are implemented and accepted by the parties involved. a.
Does the company have cases of significant land conflict? (i.e. preventing the company from operating normally)
Public consultation with stakeholders and the local community May 23th, 2016
No complaints associated with land disputes between the company and the surrounding community. This was also confirmed during the public consultation with stakeholders and the local community on May 23th, 24th and 25th 2016.
b.
If the company has cases of conflict, are records of the following available? - Status of conflict - SOP/ mechanism for conflict resolution - Implementation of SOP/mechanism - Acceptance of the procedures by all parties - Records of conflict resolution
Pedoman Kebijakan Akuisisi Lahan dan Tanam Tumbuh February 2007”
However, the company also has implemented procedures for conflict resolution mechanism specified in “Pedoman Kebijakan Akuisisi Lahan dan Tanam Tumbuh February 2007”.
N/A
Procedure explaining the land compensation process from identification of landowners, Input data (soil mapping), Negotiating compensation (according to the agreement and witnessed by a competent witness), payment of compensation, Documentation
For any conflict or dispute over the land, the extent of the disputed area shall be mapped out in a participatory way with involvement of affected parties (including neighbouring communities where applicable). a.
Is there an SOP for participatory mapping of disputed area?
b.
Is a dispute map available?
c.
Is there documented evidence of involvement and acceptance by the affected parties?
Note to auditor: Actual ground verification showing the accuracy of the dispute map should be conducted
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Public consultation with stakeholders and the local community May 23th – 25th, 2016 SOC/PSM/9:02 Revision 03 on 1st September 2014 - Social Grievance Handling Procedures
No complaints associated with land disputes between the company and the surrounding community. This was also confirmed during the public consultation with stakeholders and the local community on May 23th, 2016. However, the company also has implemented procedures for conflict resolution mechanism between companies and land owners. . Procedure explaining the land compensation process from identification of landowners, Input data (soil mapping), Negotiating compensation (according to the agreement and witnessed by a competent witness), payment of compensation, Documentation
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N/A
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NO 2.2.6
CRITERION / INDICATOR OBSERVATIONS & OBJECTIVE COMPLIANCE SUMMARY OF FINDINGS FOR EACH INDICATOR CHECKLIST EVIDENCE (YES/NO) (M) To avoid escalation of conflict, there shall be no evidence that palm oil operations have instigated violence in maintaining peace and order in their current and planned operations. Specific Guidance: For 2.2.6: Company policy should prohibit the use of mercenaries and para-militaries in their operations. Company policy should prohibit extra-judicial intimidation and harassment by contracted security forces (see Criterion 6.13). a. Does the company have a policy to Company have a policy to circumvent instigated violence to maintain peace and YES “Pedoman Kebijakan circumvent instigated violence to maintain order in current and planned operations. It documented in “Pedoman Kebijakan Manajemen Berkelanjutan” peace and order in current and planned Manajemen Berkelanjutan” (Sustainability Policy – Decree #001/DIR/IX/2014, (Sustainability Policy – Decree operations? dated 12 September 2014). #001/DIR/IX/2014, dated 12 September 2014). b. Is there any evidence of: Organisation develops attitudes of compliance to the laws that applies in the - The use of confrontation and resolution of issues between the parties and avoids the violent means. Also Public consultation with intimidation by the company to Develop an attitude of equality and impartiality in the relationship between the stakeholders and the local th th maintain peace and order? company and related parties. community on May 23 – 25 , - Use of para-militaries and 2016 From the results of the public consultation and interview with stakeholders on May mercenaries in the plantation? 23th – 25th, 2016 also confirmed that no act of violence and militaristic ways adopted by the company in solving problems with public/stakeholders.
2.3
Use of the land for oil palm does not diminish the legal, customary or user rights of other users without their free, prior and informed consent.
2.3.1
(M) Maps of an appropriate scale showing the extent of recognised legal, customary or user rights (Criteria 2.2, 7.5 and 7.6) shall be developed through participatory mapping involving affected parties (including neighbouring communities where applicable, and relevant authorities). Guidance: All indicators will apply to current operations, but there are exceptions for long-established plantations which may not have records dating back to the time of the decision making, in particular for compliance with Indicators 2.3.1 and 2.3.2. Where there are legal or customary rights over land, the grower should demonstrate that these rights are understood and are not being threatened or reduced. This Criterion should be considered in conjunction with Criteria 6.4, 7.5 and 7.6. Where customary rights areas are unclear these should be established through participatory mapping exercises involving affected parties (including neighbouring communities and local authorities). This Criterion allows for sales and negotiated agreements to compensate other users for lost benefits and/or relinquished rights. Negotiated agreements should be non-coercive and entered into voluntarily, carried out prior to new investments or operations, and based on an open sharing of all relevant information. The representation of communities should be transparent and in open communication with other community members. Adequate time should be given for customary decision making and iterative negotiations allowed for, where requested. Negotiated agreements should be binding on all parties and enforceable in the courts. Establishing certainty in land negotiations is of long-term benefit for all parties. Companies should be especially careful where they are offered lands acquired from the State by its invoking the national interest (also known as ‘eminent domain’). Growers and millers should refer to the RSPO approved FPIC guidance (‘FPIC and the RSPO: A Guide for Companies’, October 2008)
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CRITERION / INDICATOR CHECKLIST
NO
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR
For National Interpretation: Any commonly encountered situations should be identified.
2.3.2
a.
Does the company have an SOP on FPIC?
b.
Is there evidence that the identification of legal, customary or user rights has been done through FPIC process?
c.
Is there evidence that the FPIC process has been implemented in accordance to the company SOP? Where is this evidence recorded? (E.g.: Documents, Minutes of meeting, Records, Agreements, Maps etc.)
d.
Is there a map of the extent of legal, customary or user rights? Is this map of appropriate scale (1: 10,000)?
e.
Was the map produced through participatory mapping with reference to SIA and HCV assessment?
f.
Does the map have a title, legend, source, scale and projections/georeference?
g.
Are the maps accepted by the relevant communities?
Map Picture of HGU PT PP Lonsum – Bah Bulian Estate, Si Bulan Estate and Dolok Estate Public consultation with stakeholders and the local community on May 23th – 25th, 2016
FPIC were not applicable because PT PP Lonsum Bah Bulian Estate, Si Bulan Estate and Dolok Estate has established in 1908. Concession area of PT. Lonsum Indonesia is a former concession of PT. Harrisons & Crossfield (H&C). In 1908, H&C established Harrison & Crossfiled Plantation Ltd. Based on Legal entities of PT. PP London Sumatera Indonesia #93/1962.
YES
Company already has a valid land ownership that were HGU with clear boundaries and markers HGU, also have a map of HGU and HGU boundary markers with the scale of 1: 10,000 issued by BPN complete with title, legend, source, and Georeferences. Installation of the concession boundary markers have also been communicated and coordinated with relevant communities bordering and with the agreement of both parties, it was confirmed during the public consultation and interview with stakeholder on May 23th – 25th, 2016. Maps of land title have accepted by the relevant communities.
Copies of negotiated agreements detailing the process of free, prior and informed consent (FPIC) (Criteria 2.2, 7.5 and 7.6) shall be available and shall include: a) Evidence that a plan has been developed through consultation and discussion with all affected groups in the communities, and that information has been provided to all affected groups, including information on the steps that shall be taken to involve them in decision making; b) Evidence that the company has respected communities’ decisions to give or withhold their consent to the operation at the time that this decision was taken; c) Evidence that the legal, economic, environmental and social implications for permitting operations on their land have been understood and accepted by affected communities, including the implications for the legal status of their land at the expiry of the company’s title, concession or lease on the land.
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NO a. b.
CRITERION / INDICATOR CHECKLIST Are copies of negotiated agreements with affected parties available? Is there evidence that the agreement is prepared through proper FPIC process?
SUMMARY OF FINDINGS FOR EACH INDICATOR FPIC were not applicable because PT PP Lonsum Bah Bulian Estate, Si Bulan Estate and Dolok Estate has established in 1908.
COMPLIANCE (YES/NO) N/A
However, the company also has implemented procedures for conflict resolution mechanism specified in “Pedoman Kebijakan Akuisisi Lahan dan Tanam Tumbuh February 2007”. Procedure explaining the land compensation process from identification of landowners, Input data (soil mapping), Negotiating compensation (according to the agreement and witnessed by a competent witness), payment of compensation, documentation.
Does the agreement contain the following: “Pedoman Kebijakan Akuisisi Lahan dan Tanam Tumbuh - An action plan developed through February 2007” consultation with affected parties, is inclusive and evidence that members of affected parties are well informed and involved in the decision making process - Evidence of options to give or withhold consent for development - Evidence that members of the affected communities understand and accept the implication involved in permitting/rejecting oil palm development on their land (E.g.: legal status, social, environmental, economic) - Evidence that the negotiated agreement was entered voluntarily without coercion by all parties - Evidence that adequate time was given for customary decision making and iterative negotiations - Clause which states that the negotiated agreement is legally binding All relevant information shall be available in appropriate forms and languages, including assessments of impacts, proposed benefit sharing, and legal arrangements. c.
2.3.3
OBSERVATIONS & OBJECTIVE EVIDENCE Public consultation with stakeholders and the local community on May 23th – 25th, 2016
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NO a.
CRITERION / INDICATOR CHECKLIST Is there evidence that all the information (maps, agreement, records, impact assessment, benefit sharing and legal arrangements) is available in appropriate forms and languages, understood and accessible to affected parties?
Note to auditor: this should be cross checked to a sample of the affected parties
2.3.4
OBSERVATIONS & OBJECTIVE EVIDENCE “Pedoman Kebijakan Akuisisi Lahan dan Tanam Tumbuh February 2007” Communication procedure (EMS-P05), date on 10 August 2009 Public consultation with stakeholders and the local community on May 23th – 25th, 2016
SUMMARY OF FINDINGS FOR EACH INDICATOR Procedure of social communication and complaints handling, ethic policy, social impact assessment report were available in appropriate forms and language (Indonesian language). The document can be provided to all parties by request. It was confirmed during public consultation with stakeholder in May 23 th – 25th, 2016 that all related parties understood the documents.
COMPLIANCE (YES/NO) YES
Company also has implemented procedures for conflict resolution mechanism specified in “Pedoman Kebijakan Akuisisi Lahan dan Tanam Tumbuh February 2007”. Procedure explaining the land compensation process from identification of landowners, Input data (soil mapping), Negotiating compensation (according to the agreement and witnessed by a competent witness), payment of compensation, documentation.
(M) Evidence shall be available to show that communities are represented through institutions or representatives of their own choosing, including legal counsel. Specific Guidance: For 2.3.4: Evidence should be available from the companies, communities or other relevant stakeholders. a. Who is the representative of the Communities are represented through institutions or representatives of their own Public consultation with community in the negotiation process? choosing. It was confirmed that Village communities have delegated their stakeholders and the local representatives to the Village Head. Village Head are selected through local community on May 23th – 25th, b. Is the representative accepted by the election and accepted by the community. 2016 community? c.
YES
Is the record of appointment to represent the community available and shared with other parties?
PRINCIPLES 3: COMMITMENT TO LONG-TERM ECONOMIC AND FINANCIAL VIABILITY NO 3.1 3.1.1
CRITERION / INDICATOR OBSERVATIONS & OBJECTIVE SUMMARY OF FINDINGS FOR EACH INDICATOR CHECKLIST EVIDENCE There is an implemented management plan that aims to achieve long-term economic and financial viability.
COMPLIANCE (YES/NO)
(M) A business or management plan (minimum three years) shall be documented that includes, where appropriate, a business case for scheme smallholders. Specific Guidance: For 3.1.1: The business or management plan should contain:
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NO • • • • • •
CRITERION / INDICATOR OBSERVATIONS & OBJECTIVE CHECKLIST EVIDENCE Attention to quality of planting materials; Crop projection = Fresh Fruit Bunches (FFB) yield trends; Mill extraction rates = Oil Extraction Rate (OER) trends; Cost of Production = cost per tonne of Crude Palm Oil (CPO) trends; Forecast prices; Financial indicators.
SUMMARY OF FINDINGS FOR EACH INDICATOR
COMPLIANCE (YES/NO)
Suggested calculation: trends in 3-year running mean over the last decade (FFB trends may need to allow for low yield during major replanting programmes). Guidance: Whilst it is recognised that long-term profitability is also affected by factors outside their direct control, top management should be able to demonstrate attention to economic and financial viability through long-term management planning. There should be longer term planning for plantations on peat, particularly in regards to subsidence and flooding issues (see Indicator 4.3.5). Consideration of smallholders should be inherent in all management planning where applicable (see also Criteria 6.10 and 6.11). For scheme smallholders the content will vary from that suggested (refer to RSPO Guidance On Scheme Smallholders, July 2009). Growers should have a system to improve practices in line with new information and techniques. For smallholder schemes, the scheme management should be expected to provide their members with information on significant improvements. This Criterion is not applicable to independent smallholders (refer to RSPO Guidance for Independent Smallholders under Group Certification, June 2010) a. Does the company have a documented The company has established long term management plan in document “Master YES Master plan year 2016-2020 business or management plan with a plan Year 2016-2020. The documented management plan has included: minimum planning period of 3 years? Land area statement (planting years, non-planted areas, i.e. infrastructure, b. Does it include the following: HCV area) with updated location maps. Maps have included title, legend, - Land area statement (planting source, scale and projection/georeferenced. years, non-planted areas, i.e. HCV, Crop projection = Fresh Fruit Bunches (FFB) yield trends conservation areas, fragile soils, Mill extraction rates = Oil Extraction Rate (OER) trends enclaves) with updated location Cost of Production = cost per tonne of Crude Palm Oil (CPO) trends maps. Maps should have title, Forecast prices legend, source, scale and Financial indicators – profitability forecast (income vs cost) projections/georeferenced Projected expansion (area, mill capacity, infrastructure, social amenities) - Plan for management of scheme General strategy and allocation for environmental and social management smallholders (where appropriate) The management plan is reviewed annually. - Quality of planting materials - Crop projection = Fresh Fruit There was no plantation on peat. Bunches (FFB) yield trends The organization has a system to improve practices in line with new information - Mill extraction rates = Oil Extraction and techniques. Legal, Environment, and CSR is in charge to improve practice in Rate (OER) trends line with new information and techniques. New information and techniques are Doc ID: 3843 / Issue Date May, 2014
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NO -
3.1.2
CRITERION / INDICATOR CHECKLIST Cost of Production = cost per tonne of Crude Palm Oil (CPO) trends Forecast prices Financial indicators – profitability forecast (income vs cost) Projected expansion (area, mill capacity, infrastructure, social amenities) General strategy and allocation for environmental and social management (refer to P5, P6 and P8)
c.
Is this management document subjected to an annual review?
d.
For plantations on peat, is there a long term viability plan – e.g. flooding, drainability assessments and subsidence issues? (see 4.3.5)
e.
Does the grower have a system to improve practices in line with new information and techniques? - Has the personnel in charge (PIC) been identified? - How is the information updated? - Is there a documented SOP which requires monitoring and updating information to improve practices? - Is new information communicated to workers and scheme smallholders (where appropriate)? How is it communicated?
OBSERVATIONS & OBJECTIVE EVIDENCE
SUMMARY OF FINDINGS FOR EACH INDICATOR
COMPLIANCE (YES/NO)
updated through internet or routine meeting.
An annual replanting programme projected for a minimum of five years (but longer where necessary to reflect the management of fragile soils, see Criterion 4.3), with yearly review, shall be available.
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NO a.
CRITERION / INDICATOR OBSERVATIONS & OBJECTIVE CHECKLIST EVIDENCE Is there an annual replanting programme Replanting program projected for a minimum of five years?
b.
Has it been documented?
c.
Is the progress of implementation documented?
d.
How does the programme take into consideration fragile soils such as peat? Is there a longer projection period (see C4.3)?
e.
SUMMARY OF FINDINGS FOR EACH INDICATOR Projected annual replanting programme was described in the “Replanting Program”. Detail Annual Replanting Programme for tne next 5 years is only for Bah Lias Estate. In the other Estates, replanting programme is not available yet until 2020. The oldest oil palm was planted in 1992 which the age is now around 20 years, normally replanting is necessary for the age around 30 years.
COMPLIANCE (YES/NO) YES
Replanting program of Bah Lias Estate Planting year 1984 1992 1993 1997 1999 2000
Is there evidence of a yearly review of the replanting programme?
2016 0 47.53 34.17 0 0 0
2017
2018 0 0 0 0 0 0
2.53 0 0 17.36 0 0
2019
2020 0 0 0 0 0 0
0 0 0 0 7.46 1.51
The replanting program is reviewed annually.
PRINCIPLES 4: USE OF APPROPRIATE BEST PRACTICES BY GROWERS AND MILLERS CRITERION / INDICATOR CHECKLIST
NO 4.1
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR
Operating procedures are appropriately documented, consistently implemented and monitored. (M) Standard Operating Procedures (SOPs) for estates and mills shall be documented.
4.1.1
Specific Guidance: For 4.1.1 and 4.1.4: SOP and documentation for mills should include relevant supply chain requirements (see RSPO Supply Chain Certification Standard, Nov 2011). For National Interpretation: National codes of practice or Best Management Practices (BMPs) will be referenced.
a.
Have the SOPs for mills and plantation been documented?
b.
Does the SOP cover key processes,
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Standard Operating Procedure Oil Palm-Development Procedures
The company has established the procedure (SOP) for plantation cultivation best practices include land clearing, seeding, planting, maintenance, harvesting and transporting of FFB. Generally Estate has already implementing best
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YES
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CRITERION / INDICATOR CHECKLIST harvesting, transportation, manuring, IPM, GAP, Supply Chain requirements for the mill, etc.?
NO
c.
Is a copy of the SOP available on site and is it documented in an appropriate language?
d.
Is there evidence that SOPs are implemented and understood by workers?
e.
Are the SOPs appropriate and adequately cover all estate and mill processes and activities?
f.
How are the SOPs made available at the point of use?
OBSERVATIONS & OBJECTIVE EVIDENCE POM Procedure
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR management farming practices SOP that has been set. Procedures have been established in March 2008 in Oil Palm Procedure document, that is:
OP-1 Nursery Preparation and Upkeep OP-2 Preparation, Planting, Replanting and Conversion from Rubber, Cocoa and Coconut OP-3 Immature Upkeep OP-3.1 Weeding Management for Immature Oil Palm OP-3.2 Pest and Disease (Integrated Pest Management) OP-3.3 Fertilizer Schedule for Development Oil Palm OP-4 Harvesting (Crop Potentials, Crop Forecasting, Harvesting Task, Harvesting Standard, Fruit Handling and Transportation) OP-5 Mature Upkeep (Weeding, Pest & Disease, pruning, Census & survey operation, Fertilizer Management, Empty bunch & POME application). OP-5.1 Weed Control in Oil Palm OP-5.2 Pest and Disease Management OP-5.4 Prunning OP-5.5 Fertilising OP-5.8 Waste Management Generally the procedures that currently existing was within the revision 05 that officially published on year 2015 (dated 26/10/2015). Herewith the procedures available at POM Dolok such as:
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Weigh Bridge Procedure (POM-WI/01) Loading ramp and FFB Shortage Procedure (POM-WI/02) IK Sterilization station Procedure (POM-WI/03) Threshing Procedure (POM-WI/04) Pressing Procedure (POM-WI/05) Clarification Procedure (POM-WI/06) Depericarping Procedure (POM-WI/07) Kernel Recovery Procedure (POM-WI/08) Boiler Procedure (POM-WI/09) Power Generation Procedure (POM-WI/10) Water Treatment Procedure (POM-WI/11)
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NO
CRITERION / INDICATOR CHECKLIST
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR
POM-SOP/12 – Effluent Treatment – LA Empty Fruit Bunch Handling Procedure (POM-WI/13) Workshop equipment Procedure (POM-WI/14) Electrical System Procedure (POM-WI/15) Quality Procedure (POM-WI/16) Dispatch COP and Kernel Procedure (POM-WI/17) Laboratory Equipment and Reagents Procedure (POM-WI/18.1) Care & Use of the analytical Balance Procedure (POM-WI/18.3) Low Producing of FFA oil Procedure (POM-WI/19) Composting Procedure (POM-WI/21) CSPO Supply Chain (EMS-P17)
Copy of the procedures was available on site and is it documented in Indonesian language. Procedures were distributed to Estate and Mill. Procedure has been disseminated periodically to all Estate and Mill employees through regular training and morning briefing. Interviews with the employees indicated satisfactory level of understanding and implementation in relation to their respective job function. Sample of estate operational implementation were taken in harvesting process in Block 00111001 Division 01 Si Bulan Estate, Block 08111011 and 05101101 Division 01 Bah Bulian Estate, Block 06112021 Division 02 and 03113003 Division 03 Dolok Estate, compos application in Block 06200032 Division 02 Dolok Estate. Mill operational implementation was conducted started from loading ramp to CPO dispatch including supporting process, e.g. maintenance and warehouse activities. It was observed that all of the activities were implemented according to procedure. A mechanism to check consistent implementation of procedures shall be in place. 4.1.2
Guidance: Mechanisms to check implementations could include documentation management systems and internal control procedures.
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NO a.
4.1.3
CRITERION / INDICATOR CHECKLIST Is there a master list of all SOPs?
b.
How does the company keep track of revisions?
c.
Is there mechanism for: Translation of SOP into work instructions in appropriate languages? Records of training for all levels? Internal control (e.g. audit and review, field inspection) procedure in place to monitor consistent implementation of SOPs? Trained and competent personnel assigned to carry out internal control activities? Implementation audits to be carried out regularly covering implementation of all the SOPs? Procedure to address noncompliance and corrective action for continuous improvement?
OBSERVATIONS & OBJECTIVE EVIDENCE Report of Operational Audit #OA-14-VIII-Plt.III-Est-015 Visiting Agent Report #KBD/VA/FULL 01-14 Report of Operational Audit #OA-14-VIII-Plt.III-Est-014 R&D – P&D Report #KTR/R&D – P&D/01-15
SUMMARY OF FINDINGS FOR EACH INDICATOR Master list of all SOPs and its revision history were available and well documented. Organization keeps track of revision of the SOPs in revision history in the cover of SOPs. SOP was provided in Indonesian language. SOPs training and dissemination to all of employee has been conducted.
COMPLIANCE (YES/NO) YES
The organization has well implemented internal control and monitoring processes that check and report on the implementation of the SOPs. These include independent checks of the Mill and Estates by the corporate internal audit. There were several internal audits, e.g. AMA visiting, VP Inspection, etc. Internal audit was conducted to check implemetation of the procedures and work instructions. Internal audit covered operational activities of plantations and mill including the maintenance of palm oil crop (upkeep, manuring, IPM), harvesting and other supporting activities such as administration, road infrastructure, FFB transport and mill process. AMA Visiting and VP Inspection in 2015 and 2016 were 1 October 2015, 25-26 January 2016, 28-29 March 2016 Corrective action of all non-conformities found has been follow up. The organisation has established procedure to address non-compliance and corrective action for continuous improvement
Records of monitoring and any actions taken shall be maintained and available, as appropriate. a.
Have the records been maintained on the following? Measurements or results of internal control and monitoring activities (refer 4.1.2) Records of corrective actions and improvement undertaken
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BKM (Buku Kegiatan Mandor Log book of group leader activity) Form pengancakan panen – Form of harvesting planning Form cek ancak panen – Checking of harvesting area Surat pengiriman buah sawit (SPBS) – FFB transportation from Estate to Mill Logsheet of every station in Mill
Record of monitoring and any action taken were maintained and available for Estate and Mill, e.g. : -
BKM (Buku Kegiatan Mandor - Log book of group leader activity).
-
Form pengancakan panen – Form of harvesting planning
-
Form cek ancak panen – Checking of harvesting area. The checking covered number of block, name of harvester.
-
Pemeriksaan mutu buah – Checking of FFB quality. The checking covered number of block, name of harvester, FFB lagged, brondol lagged, midrib set out, abnormal harvested, etc
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YES
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CRITERION / INDICATOR CHECKLIST
NO
OBSERVATIONS & OBJECTIVE EVIDENCE Calibration report Field observation to Estate and Mill
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR -
Surat pengiriman buah sawit (SPBS) – FFB transportation from Estate to Mill covered name of Estate, number of block, FFB lagged, brondolan lagged, etc.
-
Logsheet every station from loading ramp, sterilizer, threshing, press, clarification, boiler and effluent. Record daily activity of processs in each station and process performance in each station.
-
Calibration reports of measuring equipement, e.g. analytical balance, weigh bridge, oven, water bath, etc.
-
Control of Process work program and routin maintenance and equipment repair.
Records of corrective actions and improvement undertaken for all of the control and monitoring activity above has been maintained by the organization. 4.1.4
4.2
4.2.1
(M) The mill shall record the origins of all third-party sourced Fresh Fruit Bunches (FFB). a. Is there an SOP for third-party FFB N/A No FFB from the third party sourcing? b.
Is there a list of approved third-party FFB suppliers?
c.
Is there proof of observed implementation of SOP?
d.
Is there daily and summary records of volume and origins of third-party FFB received?
e.
Have these records been verified against the available document?
N/A
Practices maintain soil fertility at, or where possible improve soil fertility to, a level that ensures optimal and sustained yield. There shall be evidence that good agriculture practices, as contained in Standard Operating Procedures (SOPs), are followed to manage soil fertility to a level that ensures optimal and sustained yield, where possible. Guidance: Long-term fertility depends on maintaining the structure, organic matter content, nutrient status and microbiological health of the soil. Nutrient efficiency should take account of the age of plantations and soil conditions.
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CRITERION / INDICATOR CHECKLIST
NO
OBSERVATIONS & OBJECTIVE EVIDENCE
For National Interpretation: The range of appropriate techniques will be identified. a. Are there SOPs for Good Agricultural OP-3.3 Fertilizer Schedule Practices in managing soil fertility? for Development Oil Palm Procedure b. Is there evidence that the SOPs have Field observation of compost been implemented and monitored? application
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR
Organization has been defined the SOPs for Good Agricultural Practices in managing soil fertility which documented in OP-3.3 Fertilizer Schedule for Development Oil Palm. Manuring was performed manually with dosage stated in document “Fertiliser recommendation 2016”.Manuring activity was reported monthly.
YES
During the date of audit, there was no manuring activity, only compos application in Block 06200032 Division 02 Dolok Estate. Based on data on manuring recommendation and realisation 2015, it was noted that SOPs has been implemented and monitored. 4.2.2
Records of fertiliser inputs shall be maintained. a.
Is records of fertiliser inputs maintained?
b.
Is there records to proof that the fertiliser program is linked to the agronomic report?
c.
Is there records of fertilizer usage per tonne of FFB production (>in Summary Table, specific types of fertilizers)?
Manuring recommendation 2016 LUK (Estate Report)
Records of fertiliser inputs are well maintained in document “Fertiliser recommendation 2015 and 2016”. Fertiliser inputs recorded each semester. Record of manuring realisation in 2015 and 1st semester 2016 are: Si Bulan Estate Type of Fertiliser MOP (kg) RP (kg) Urea (kg) Super Dolomite (kg) Total FFB (ton) Fertilizer use (kg/ton FFB)
Realization 2015 54,256 141,064 156,000 64,892 404,426 12,851 31.47
Realization January – April 2016 37,186 28,428 60,933 0 126,547 2,654 47.68
Realization 2015
Realization January – April 2016
Bah Bulian Estate Type of Fertiliser
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YES
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CRITERION / INDICATOR CHECKLIST
NO
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR MOP (kg) RP (kg) Urea (kg) Super Dolomite (kg) Total FFB (ton) Fertilizer use (kg/ton FFB)
127,814 331,237 269,674 134,909 863,634 27,878 30,98
114,835 0 65,313 0 180,148 6,175 29,17
Realization 2015 148,723 503,936 420,112 161,243 1,234,014 54,365 22,70
Realization January – April 2016 0 0 0 0 0 12,148 0
Dolok Estate Type of Fertiliser MOP (kg) RP (kg) Urea (kg) Super Dolomite (kg) Total FFB (ton) Fertilizer use (kg/ton FFB)
There was no manuring application until April 2016 in Dolok Estate due since three months ago there was no rain. 4.2.3
There shall be evidence of periodic tissue and soil sampling to monitor changes in nutrient status. a.
Is there SOPs for tissue and soil sampling?
b.
Is there evidence of implementation of the SOPs, including availability of records?
c.
Is there records of tissue and soil analysis?
d.
Is the results of the study incorporated into the fertilizer program?
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Report of Leaf Sampling Unit Report of Soil Sampling Unit
Evidence of periodic leaf sampling analysis and soil sampling analysis in 2015: Estate Dolok Estate Bah Lias Estate Bah Bulian Estate Si Bulan Estate
Leaf sampling analysis (samples) 90 144 39 18
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Soil sampling analysis (samples) 184 560 72 36
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YES
Audit Report
NO 4.2.4
CRITERION / INDICATOR OBSERVATIONS & OBJECTIVE SUMMARY OF FINDINGS FOR EACH INDICATOR CHECKLIST EVIDENCE A nutrient recycling strategy shall be in place, and may include use of Empty Fruit Bunches (EFB), Palm Oil Mill Effluent (POME), and palm residues after replanting.
COMPLIANCE (YES/NO)
Guidance: The nutrient recycling strategy should include any use of biomass for by-products or energy production. a. Is there a nutrient recycling strategy in There was the nutrient recycling strategy performed by organisation, i.e. compost. Program and realisation of place? Compost only applied in Dolok Estate. The location, dosage and schedule of compost application application have been determined. b. Does the strategy include the following?
Clear objectives and time-bound targets Inventory of - EFB - POME - Fibre - Boiler ash - Kernel shell - Palm residues from replanting Biomass recycling program Implementation and monitoring records
YES
Compost application in Dolok Estate: Year 2015 2016 (January – April)
Recommendation (ton) 25,578 34,228
Realisation (ton) 24,295 7,931
Site visit in Block 06200032 Division 02 Dolok Estate has been done to observe the compost application in field.
Note to auditor: Ground verification required 4.3
Practices minimise and control erosion and degradation of soils. (M) Maps of any fragile soils shall be available.
4.3.1
Guidance: Plantations on peat should be managed at least to the standard set out in the ‘RSPO Manual on Best Management Practices (BMPs) for existing oil palm cultivation on peat’, June 2012 (especially water management, fire avoidance, fertiliser use, subsidence and vegetation cover). Techniques that minimise soil erosion are well known and should be adopted, where appropriate. These should include practices such as ground cover management, biomass recycling, terracing, and natural regeneration or restoration instead of replanting. For National Interpretation: National Interpretation (or an RSPO recognised parallel means) will refer to national guidance, and identify the best management practices and appropriate techniques for maintaining soil quality in local conditions, including guidance on soil types, and any appropriate performance thresholds such as maximum acceptable slope gradient for planting.
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NO a.
b.
4.3.2
CRITERION / INDICATOR CHECKLIST Is there soil maps showing presence of fragile soils and problem soils (refer to 4.3.6)? Are maps georeferenced and of appropriate scale (1:50,000)?
OBSERVATIONS & OBJECTIVE EVIDENCE Maps of soil type in Dolok Estate were available in scale 1 : 40,000 Maps of soil type in Sei Bejangkar Estate (part of Dolok Estate) were available in scale 1 : 50,000 Maps of soil type in Bah Bulian Estate were available in scale 1 : 35,000 Maps of soil type in Si Bulan Estate were available in scale 1 : 35,000 Field observation in Dolok, Bah Bulian and Si Bulan Estate
SUMMARY OF FINDINGS FOR EACH INDICATOR Based on the soil map and field observation there were no fragile soils in Dolok, Bah Bulian and Si Bulan Estate PT PP London Sumatra Indonesia Tbk.
COMPLIANCE (YES/NO) YES
A management strategy shall be in place for plantings on slopes above a certain limit (this needs to be soil and climate specific). a.
Is there a management strategy in place for plantings on slopes?
b.
Does the management strategy include the following? Identification of steep areas not suitable for planting Policy of planting on slopes - SOPs to minimise soil erosion based on local soil and climate conditions, e.g. ground cover management, biomass recycling, terracing, and natural regeneration or restoration instead of replanting
c.
OP-2 Preparation and Planting Procedure Field observation in Dolok, Bah Bulian and Si Bulan Estate
The organisation has defined the strategy for planting of slopes area in the procedure OP-2 Preparation and Planting Procedure. The procedure describes management strategy for minimising and controlling soil erosion. The organisation does not recommend plantings on slopes > 40% or > 22º. System for planting on slopes area was provided through terracing, growing of legume cover crops (LCC) and determining of planting space. Based on maps of soil in Dolok, Bah Bulian and Si Bulan Estate, there was no area with slopes > 30%.
Is there proof of records of field inspection on SOP implementation?
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YES
Audit Report
CRITERION / INDICATOR CHECKLIST
NO 4.3.3
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR
A road maintenance programme shall be in place. a.
Is there a road maintenance programme in place with supporting budget and resources?
b.
Is there road maintenance records?
Field observation in Dolok, Bah Bulian and Si Bulan Estate Yearly work program – road maintenance 2015 and 2016 Map of road harderning 2015
Road maintenance program has been established in Dolok, Bah Bulian and Si Bulan Estate. Road maintenance was conducted manually and mechanically using grader and compactor. Realisation of road maintenance was well recorded covering block maintained, distance of road maintained and diesel fuel consumption.
YES (Minor NCR 2016-04 closed)
Total road maintenance in January – April 2016 were: Estate
Realisation (meter)
Bah Bulian Estate
53,202
Dolok Estate
42,892
During field observation all main roads and collection roads were well maintained and passable for vehicle. Minor Non-conformance 2016-04:
Si Bulan Estate: Program and realisation of road maintenance 2015 and 2016 could not be shown
(M) Subsidence of peat soils shall be minimised and monitored. A documented water and ground cover management programme shall be in place. 4.3.4
Specific Guidance: For 4.3.4: For existing plantings on peat, the water table should be maintained at an average of 50cm (between 40 - 60cm) below ground surface measured with groundwater piezometer readings, or an average of 60cm (between 50 - 70cm) below ground surface as measured in water collection drains, through a network of appropriate water control structures e.g. weirs, sandbags, etc. in fields, and watergates at the discharge points of main drains (Criteria 4.4 and 7.4).
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NO a.
CRITERION / INDICATOR CHECKLIST Is there an SOP to provide guidance on subsidence management?
b.
Does the SOP make reference to the RSPO BMPs on peat?
c.
How is subsidence being monitored?
d.
Are there records of subsidence monitoring?
e.
How is subsidence being minimised?
f.
Is there a water management programme and evidence of implementation? For existing plantings on peat, the water table should be maintained at an average of 50cm (between 40 - 60cm) below ground surface measured with groundwater piezometer readings, or an average of 60cm (between 50 - 70cm) below ground surface as measured in water collection drains, through a network of appropriate water control structures e.g. weirs, sandbags, etc. in fields, and watergates at the discharge points of main drains (Criteria 4.4 and 7.4).
g.
Is there a ground cover management programme and is there evidence of implementation?
OBSERVATIONS & OBJECTIVE EVIDENCE Maps of soil type in Dolok Estate were available in scale 1 : 40,000 Maps of soil type in Sei Bejangkar Estate (part of Dolok Estate) were available in scale 1 : 50,000 Maps of soil type in Bah Bulian Estate were available in scale 1 : 35,000 Maps of soil type in Si Bulan Estate were available in scale 1 : 35,000 Field observation in Dolok, Bah Bulian and Si Bulan Estate
SUMMARY OF FINDINGS FOR EACH INDICATOR Based on Semi detail Soil Map and field observation at Dolok Estate, Bah Bulian Estate and Si Bulan Estate there are no peat soils in the plantation.
COMPLIANCE (YES/NO) Not Applicable
Drainability assessments shall be required prior to replanting on peat to determine the long-term viability of the necessary drainage for oil palm growing. 4.3.5
Specific Guidance: For 4.3.5: Where drainability assessments have identified areas unsuitable for oil palm replanting, plans should be in place for appropriate rehabilitation or alternative use of such areas. If the assessment indicates high risk of serious flooding and/or salt water intrusion within two crop cycles, growers and planters should consider ceasing replanting and implementing rehabilitation.
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NO a.
4.3.6
b.
Was a flood risk map provided as a result of the drainability assessment?
c.
If the drainability assessment shows that an area is unsuitable for replanting, are there alternative plans in place for rehabilitation and alternative use in accordance to the RSPO BMPs?
OBSERVATIONS & OBJECTIVE EVIDENCE Maps of soil type in Dolok Estate were available in scale 1 : 40,000 Maps of soil type in Sei Bejangkar Estate (part of Dolok Estate) were available in scale 1 : 50,000 Maps of soil type in Bah Bulian Estate were available in scale 1 : 35,000 Maps of soil type in Si Bulan Estate were available in scale 1 : 35,000 Field observation in Dolok, Bah Bulian and Si Bulan Estate
SUMMARY OF FINDINGS FOR EACH INDICATOR Based on Semi detail Soil Map and field observation at Dolok Estate, Bah Bulian Estate and Si Bulan Estate there are no peat soils in the plantation.
COMPLIANCE (YES/NO) Not Applicable
A management strategy shall be in place for other fragile and problem soils (e.g. sandy, low organic matter, acid sulphate soils). a.
4.4 4.4.1
CRITERION / INDICATOR CHECKLIST Was a drainability assessment conducted before replanting on peat?
Is there a management strategy in place for other fragile and problem soils?
Maps of soil type in Dolok Estate were available in scale 1 : 40,000 b. Does the management strategy include Maps of soil type in Sei SOPs for the management of other fragile Bejangkar Estate (part of Dolok and problem soils? Estate) were available in scale 1 c. Is inspection and implementation records : 50,000 available? Maps of soil type in Bah Bulian Estate were available in scale 1 : 35,000 Maps of soil type in Si Bulan Estate were available in scale 1 : 35,000 Field observation in Dolok, Bah Bulian and Si Bulan Estate Practices maintain the quality and availability of surface and ground water. An implemented water management plan shall be in place.
Doc ID: 3843 / Issue Date May, 2014
Based on Semi detail Soil Map and field observation at Dolok Estate, Bah Bulian Estate and Si Bulan Estate there are no other fragile and problem soils in the plantation.
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Not Applicable
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NO
CRITERION / INDICATOR CHECKLIST
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR
Specific Guidance: For 4.4.1: The water management plan will: • Take account of the efficiency of use and renewability of sources; • Ensure that the use and management of water by the operation does not result in adverse impacts on other users within the catchment area, including local communities and customary water users; • Aim to ensure local communities, workers and their families have access to adequate, clean water for drinking, cooking, bathing and cleaning purposes; • Avoid contamination of surface and ground water through run-off of soil, nutrients or chemicals, or as a result of inadequate disposal of waste including Palm Oil Mill Effluent (POME). Guidance: Growers and millers should address the effects of their use of water and the effects of their activities on local water resources. a. Is there a water management plan in The documented procedure defined the method of water management plan Water analysis measurement place for mill and plantation with identified include water source and distribution identification, volume of water utilization, for period 2015 by Sucofindo actions? parameter/standards of water utilization, identify the impacts include water Medan effluents/wastes and also the method to reduce and control. Records of water consumption b. Does the plan include the following? at mill and estates for period Identification of water sources The licence of water sources at Dolok Mill and Estates has been available from 2015 and 2016 (April) local government and valid. The records of retribution payment were sighted for Efficient use of water POM-WI-11 water treatment period 2015 and January – March 2016. The water was utilize for mill operations Renewability of water source process work instruction (include boilers, processes and domestics usage) that through the water Impacts on catchment area and Licence of surface water usage treatment plant (using physicals and chemicals method) and for estate operations local stakeholders (include housing, pesticides mixings and office operations). Access of clean drinking water all year round for stakeholders The monitoring of water volume utilization was conducted, records was also Avoidance of surface and ground sighted: water contamination Site Water usage 2015 Water usage (to April 2016) c. Have the identified actions in the plan been implemented?
Si Bulan Estate
Bah Bulian Estate Bah Lias Estate Dolok Estate Dolok Mill
31,818.35
5,505.26
-
-
44,623.57 11,648.56
49,546.00 3,809.94
219,867.00
70,622
YES (Minor NCR 2016-05 closed)
The organisation has program to reduce water consumption, e.g. arranging water distribution to staff housing, reusing water from PPE and hazardous waste cleaner
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NO
CRITERION / INDICATOR CHECKLIST
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR for spraying, reusing water from turbine for clarification, and flowmeter installation for all water utilization at mill. The measurement analysis for clean water was conducted periodically (twice a year) against the standard of Permenkes 492/2010 by third party laboratory (Sucofindo), last checked on semester II 2015. From the result shows that all parameter were conformed within the standard. Minor Non-Conformance 2016-05: Flowmeter on Bah Bulian Estate was broke since January 2015 and there was no record of water consumption for period 2015 and 2016.
(M) Protection of water courses and wetlands, including maintaining and restoring appropriate riparian and other buffer zones (refer to national best practice and national guidelines) shall be demonstrated. 4.4.2
Specific Guidance: For 4.4.2: Refer to the ‘RSPO Manual On Best Management Practices (BMP) for management and rehabilitation of natural vegetation associated with oil palm cultivation on peat’, July 2012. For National Interpretation: National Interpretation will refer to national guidelines or best practice and where appropriate include performance thresholds for requirements such as the size and location and methods of restoration of riparian strips or acceptable maximum run-off levels. a. Is there a map identifying water courses Organization has identified water courses and wetland in the plantation area. Map YES Management of riparian strips and wetlands? identifying water courses and wetlands documented in “Peta Areal Sempadan procedure (SOP-OP.13) Sungai” with scale 1: 25.000. b. Are the water courses and wetlands EMS-P16 HCV Management protected? There were identified water courses in PT PP London Sumatera Tbk – Dolok Mill and Monitoring Issued and it supply base, consist of : Field observation was c. Are the riparian and buffer zones conducted on Riparian zone in maintained and restored in existing Si Bulan Estate : Sibulan Estate, Bah Bulian plantation and replanting areas? Bahilang river, Gajah River, Besar River, Candu River and Delapan river with Estate, Dolok Estate and Bah d. Is there SOP for riparian and buffer zone total area 6.543 ha Lias Estate protection? Bah Bulian Estate : e. Has the SOP been implemented? Bah Bulian river, Pondok Teladan river and water spring in emplacement with total area 78.947 ha
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NO
CRITERION / INDICATOR CHECKLIST
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR Dolok Estate : Bendungan river, Dam Wakit river, Ketapang river, Nurayah River, Tiran river and water spring in emplacement with total area 23.108 ha Bah Lias Estate: Bah Bolon river, Habatu river, Manahul River, Panambean River, Bah Lias lake and Habatu lake with total area 50.64 ha The riparian and buffer zones above were well maintained and restored in existing plantation. The water courses was protected by company with the following ways : -
Establishment of conservation areas in riparian area to protect the river water of pollutants, such as chemicals (fertilizers and pesticides) Work on conservation areas remain to be implemented, but are prohibited from using pesticides. Kind of beneficial plants that need to be planted is Cassia cobanensis. On the river with a width of 15 meters, planted crops such as rubber wood or other wood plants. On the river with a width of less than 15 meters, planted with Land Cover Crop.
Riparian and buffer zones maintained and restored in existing plantation and replanting areas as described above. Policy of riparian buffer zone management at or before replanting was provided in related procedure (Management of riparian strips procedure SOP-OP.13 and EMS-P16 HCV Management and Monitoring Issued). Procedure mentioned that riparian buffer zone is planted with monoculture plants (woody trees) to minimize land claim, communicate management and protection of riparian zone to employee and around community and setting up sign of riparian protection as well as manually maintenance oil palm in the riparian area. During field observation shown that the procedure regarding riparian and buffer zone protection was well implemented. 4.4.3
Appropriate treatment of mill effluent to required levels and regular monitoring of discharge quality, especially Biochemical Oxygen Demand (BOD), shall be in compliance with national regulations (Criteria 2.1 and 5.6).
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CRITERION / INDICATOR CHECKLIST
NO
4.4.4
a.
Is the mill effluent treatment process in place?
b.
Is there a process in place for checking and monitoring water discharge quality, particularly BOD?
c.
Is the water discharge quality in compliance with national regulations?
d.
Does the mill have a license for treatment, discharge or land application of mill effluent, and is the mill in compliant with the requirements of the license?
OBSERVATIONS & OBJECTIVE EVIDENCE Waste water analysis measurement period 2015 and January – April 2016 License of waste water discharge (IPLC) from Head of Batubara Regent No.660/0260/BLH/IV/2013 dated 18 April 2013 valid for 3 years
SUMMARY OF FINDINGS FOR EACH INDICATOR Dolok Mill waste water (POME) was processed through a series of waste water treatment ponds: two acidification ponds, one anaerobic pond, and one facultative pond. POME is monitored monthly as required by permit. The results of POME monitoring were reviewed including measurement of BOD, COD, pH, N Total, TSS, oil and fat for January to December 2015 and January to April 2016.
COMPLIANCE (YES/NO) YES
The Environment Ministry Decree No. 28/2003 required that BOD of POME is less than 5.000 mg/litre, pH 6 – 9. The result of POME quality during this period was under 5.000 mg/litre (average 2.500 – 4.700) for BOD and pH average 7 – 7.5. There is sighted the license of waste water discharge from Head of Batubara Regent No. 660/0260/BLH/IV/2013 dated 18 April 2013 valid for 3 years. The renewal licence for waste water discharge has been submitted to BLH Batubara Regent based on mail No.36/DLPOM/KLH-BB/III/2016 dated 22 March 2016. Verification process from BLH has been done on 24 March 2016.
Mill water use per tonne of Fresh Fruit Bunches (FFB) (see Criterion 5.6) shall be monitored. a.
Are there procedures to measure mill water usage, and are the procedures implemented?
b.
Are there records of mill water use per tonne of Fresh Fruit Bunches (FFB)?
Water Treatment Procedure (POM-WI/11) Report of mill water use period 2014 and 2015
The documented procedure defined the method of water management plan include water source and distribution identification, volume of water utilization, identify the impacts include water effluents/wastes and also the method to reduce and control. Mill water use per tonne of FFB is monitored monthly. Result of monitoring of mill water use per tonne of FFB was sighted for 2015. It was noted that mill water use per tonne of FFB period January to December 2015 (1.29 m 3/ton FFB) was increased being compared with budget (1.25 m3/tonne FFB), for period January – April 2016 mill water used is 1.96 m3/tonne FFB was increased being compared with budget. The organisation has program to reduce water consumption, e.g. arranging water distribution to staff housing, reusing sterilizer condensate water for press station, flowmeter installation for all water utilization at mill, improve employee awareness regarding water consumption, and reusing water from cooling turbine for cleaning in clarification.
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YES
Audit Report
CRITERION / INDICATOR CHECKLIST
NO 4.5
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR
Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate Integrated Pest Management techniques. (M) Implementation of Integrated Pest Management (IPM) plans shall be monitored.
4.5.1
Guidance: Growers should apply recognised IPM techniques, incorporating cultural, biological, mechanical and physical methods to minimise the use of chemicals. Native species should be used in biological control where possible. a. Is there a documented IPM plan? Pest and Diseases management program of oil palm plantations have been OP-3.2 Pest and Disease prepared in the budget 2016. (Integrated Pest Management) b. Does the IPM plan include the following? Program census of caterpillar Identification of potential pests and The SOP describes integrated pest control (integrated pest management/IPM) leaf eater thresholds plan which combines various control techniques e.g. mechanical, biological, Program census of rat physical and chemical, applied early warning system (EWS) through periodically What are the techniques used census for pests. (cultural, biological, mechanical and Summary census of caterpillar leaf eater physical methods)? IPM program included: What are the native species used as Monitoring barn owl in nest box
part of the biological control method? Does it help in reducing the use of chemicals over a period of time? Prophylactic use of pesticides Minimization of pesticide use Review on the plans to suit the present condition such as replanting?
c.
Is there an SOP to implement the plan and monitor its effectiveness?
d.
Is there records of pest occurrence and control?
Visual observation (e.g. broken leafs or stems and fruit rotten) Conducting a census (to determine the distribution and level of attack). Control (manual, biological or chemical), e.g hand picking, light trap, planting of beneficial plant (nest of natural predator for caterpillars) Minimisation of pesticed use Census of evaluation (to see the effect of control)
IPM plan was well implemented and documented, e.g.:
Census of caterpillar is conducted monthly. Based on result of caterpillar census in 2015, there was no caterpillar attact therefore there was no pesticide use. Result of caterpillar census in Bah Bulian: Field number 99112001
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Area (Ha) 17.06
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Date 21.01.2016
Total sample
Oil palm attacked
14
1
Pupa
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YES
Audit Report
NO
CRITERION / INDICATOR CHECKLIST
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR 99112002
31.74
08112002
34.65
19.03.2016
14
0
-
20.01.2016
27
0
-
19.03.2016
27
0
-
18.01.2016
22
1
Larva
16.03.2016
21
0
-
Cencus of rat is conducted two monthly. To control rat, the organisation applied Tyto alba (owls) as predator of rat. Condition of Tyto alba is monitored periodically. Result of rat census in Dolok Estate Field number
Area (Ha)
Date
Total sample
Oil palm attacked
96111001
38.28
06112012
% attacked
11.01.2016
226
4
1.77
27.30
04.01.2016
197
2
1.02
00113004
39.60
09.02.2016
158
33
20.89
03114001
20.19
14.03.2016
118
4
0.03
Klerat was applied in field number 00113004 Result of nest box monitoring in Bah Lias Estate Monitoring date
Result Egg
Note
Child
Adult
January
64
2
20
6
Occupied 12
February
64
5
6
5
Occupied 4
March
64
6
3
2
Occupied 3
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Quantity of nest box
Census of Oryctes is conducted in immature oil palm. Application of
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CRITERION / INDICATOR CHECKLIST
NO
OBSERVATIONS & OBJECTIVE EVIDENCE
4.5.2
chemical is conducted every 2 weeks. The beneficial plant such as: Turnera subulata planted in the collection and the main road. Planting and upkeep of beneficial plants was sighted and during field observations, it was observed that beneficial plants were well maintained.
Training of those involved in IPM implementation shall be demonstrated. a.
4.6
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR
Is there records of training provided to those involved in the implementation of IPM?
List of participant attendance
Training of implementation of IPM has been conducted several times, e.g. 4 September 2014 in Si Bulan Estate 5 September 2014 in Dolok Estate 28 June 2014 in Bah Lias Estate 13 May 2016 in Bah Bulian Estate Participant of training was staff and non staff from Estate. List of participant attendance was sighted. Training material covered IPM technique and implementation.
YES
Pesticides are used in ways that do not endanger health or the environment. (M) Justification of all pesticides used shall be demonstrated. The use of selective products that are specific to the target pest, weed or disease and which have minimal effect on non-target species shall be used where available. Specific Guidance: For 4.6.1: Measures to avoid the development of resistance (such as pesticide rotations) should be applied. The justification should consider less harmful alternatives and IPM.
4.6.1 Guidance: The RSPO has identified some examples of alternatives to pesticide use, which include those listed in the ‘Research project on Integrated Weed Management Strategies for Oil Palm; CABI, April 2011’. Due to problems in the accuracy of measurement, monitoring of pesticide toxicity is not applicable to independent smallholders (refer to ‘Guidance for Independent Smallholders under Group Certification’, June 2010). a. Does the organization have a policy on YES Management of Hazardous and The organisation has established procedure on safe use of chemical. Procedure safe use of chemicals? described on safe use of chemical, selection, use and storage of pesticide. The Toxic Material and Waste procedure also described use of selective pesticides that are specific to target Procedure - EMSP-14 b. Does the organization have SOPs for use pests, weeds, or diseases. Each type of pesticide used have been defined Procedure OP 5.2.2 Guide to of selective products that are specific to specific target of pest, types of weeds, application doses per hectare which have safe use of pesticide, March Doc ID: 3843 / Issue Date May, 2014
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CRITERION / INDICATOR CHECKLIST target pests, weeds, or diseases and which have minimal effect on non-target species? i. Measures to avoid the development of resistance (such as pesticide rotation) should be applied. ii. Is there a list of all pesticide with target species and justification of use? iii. The justification should consider less harmful alternatives and IPM.
NO
c.
Is there evidence of implementation of SOP on the ground?
Doc ID: 3843 / Issue Date May, 2014
OBSERVATIONS & OBJECTIVE EVIDENCE 2008 Type of Agrochemical and active ingredient
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR minimal effect on non-target species and a broad plan of applications specified in the annual budget. To avoid development of resistance have been implemented by pesticides rotation. Less harmfull alternatives and IPM was applied by planting of beneficial plants, building nest box and census of caterpillar and rat. Pesticides used has license and registered in the Agriculture Department as mentioned in Pesticide Commission Book “Buku Komisi Pestisida”: Type of pesticides
Register number
Expired date of register number
Antracol
None
None
Dipel WP
RI 010101197517
6 July 2017
Klerat RM-B
RI 666/9 – 2008
25 September 2018
Lindomin 865 SL
RI 01030119898
23 June 2016
Marshal 5G
RI 010101196612
17 October 2017
Sevin
None
None
Elang 480 SL
RI 01030119941
9 January 2017
Gramoxone 276 SL
RI 01030119751
9 January 2017
Topzone 276 SL
RI 01030120072
17 October 2017
Starlon 665 EC
RI 01030120072
6 July 2017
Metsulindo 20 WP
RI 01030119991
23 June 2016
Benlox 50 WP
None
None
Decis 2.5 EC
None
None
Santador 25EC
None
None
Lindomin 865 AS
None
None
Starane 200EC
None
None
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CRITERION / INDICATOR CHECKLIST
NO
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR Starlon 480 EC
None
None
Dithane M-45 80WP
None
None
Othene 75 SP
RI 010101197420
9 January 2017
Topzone 276 SL
RI 01030120072
17 October 2017
Smart 486 AS
None
None
Starthane 75 WG
RI 010101200729
17 October 2017
Manuver 400 WC
None
None
Metaprima 20 WG
None
None
For pesticides with have no registration number were identified as major nonconformance NCR 2016-02. During audit it was evidence that procedure was implemented.
4.6.2
(M) Records of pesticides use (including active ingredients used and their LD50, area treated, amount of active ingredients applied per ha and number of applications) shall be provided. a.
Does the company have a pesticide application program?
b.
Is records of pesticides use available?
c.
Do the records detail the active ingredients used and their LD50, area treated, amount of active ingredients applied per ha and number of applications?
Annual budget Form of Herbicide use
The organization has defined pesticide application program in the annual budget. Record of pestiside use realisation was well recorded and reported in monthly Estate report. Records also covered active ingredients used and their LD50, area treated, amount of active ingredients applied per ha. Major Non-conformance 2016-06:
Doc ID: 3843 / Issue Date May, 2014
YES (Major NCR 2016-06 closed)
LD50 has not been provided for Antracol, Sevin, Benlox 50WP, Decis 2.5EC, Santador 25EC, Lindomin 865AS, Starane 200EC, Starlon 480EC, Dithane M-45 80WP, Smart 486 AS, Manuver 400 WC, Metaprima 20 WG. Dolok Estate Total active ingredient per ha from pesticide use has not been provided.
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NO
CRITERION / INDICATOR OBSERVATIONS & OBJECTIVE COMPLIANCE SUMMARY OF FINDINGS FOR EACH INDICATOR CHECKLIST EVIDENCE (YES/NO) (M) Any use of pesticides shall be minimised as part of a plan, and in accordance with Integrated Pest Management (IPM) plans. There shall be no prophylactic use of pesticides, except in specific situations identified in national Best Practice guidelines. Specific guidance for 4.6.3: Justification of the use of such pesticides will be included in the public summary report.
4.6.3
For National Interpretation: National Interpretation will consider: statutory requirements concerning pesticide use, lists of legally prohibited pesticides, pesticide residues that should be tested for and the appropriate levels of residues, and best management practices for pesticide use or sources of information on these. National Interpretation will develop best practice guidelines on the exceptional circumstances that would allow the use of pesticides categorised as World Health Organisation Class 1A or 1B, or those listed by the Stockholm or Rotterdam Conventions, and paraquat as well as how they will be used in ways that do not endanger health or the environment. a. Does the company have an IPM plan? YES OP-3.2 Pest and Disease IPM program included: (Integrated Pest Management) b. Has that plan been implemented? Visual observation (e.g. broken leafs or stems and fruit rotten) Program census of caterpillar Conducting a census (to determine the distribution and level of attack). c. Is the effectiveness of the IPM plan leaf eater Control (manual, biological or chemical), e.g hand picking, light trap, planting monitored? Program census of rat of beneficial plant (nest of natural predator for caterpillars) d. Are there records showing that the use of Summary census of caterpillar Minimisation of pesticed use leaf eater pesticides have been minimised in Census of evaluation (to see the effect of control) Monitoring barn owl in nest box accordance with Integrated Pest Management (IPM) plan? Form of Herbicide use e.
Has there been prophylactic use of pesticides? If so, justification must be provided in accordance to National Best Practices.
IPM plan was well implemented and documented, e.g.:
Census of caterpillar is conducted monthly. Based on result of caterpillar census in 2015, there was no caterpillar attact therefore there was no pesticide use. Cencus of rat is conducted two monthly. To control rat, the organisation applied Tyto alba (owls) as predator of rat. Condition of Tyto alba is monitored periodically. Census of Oryctes is conducted in immature oil palm. Application of chemical is conducted every 2 weeks.
The beneficial plant such as: Turnera subulata planted in the collection and the main road. Planting and upkeep of beneficial plants was sighted and during field observations, it was observed that beneficial plants were well maintained. The use of pesticides has been minimised as part of a plan, and in accordance with Integrated Pest Management (IPM) plans:
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NO
CRITERION / INDICATOR CHECKLIST
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR Si Bulan Estate Pesticide
2014
Benlox Decis 2.5 EC Marshal 5G Santador 25EC Lindomin 865 AS Metsulindo 20 WP Starane 200EC Starlon 480EC Elang 480 SL Dithane M-45 80WP Klerat RM-B
2015 0 2 102
2 18 255 65 716 69 3 18 997 0 0
182 144 0 12 436 0 0
January – April 2016 0 0 632 140 79 0 0 3 206 6 49
Bah Bulian Estate Pesticide Elang 480 SL Lindomin Starlon Gramoxone Metsulindo
2014 571.50 140.50 69 20 0
2015 379 82 95 0 17
January – April 2016 117.5 23.5 14 0 8
Dolok Estate Pesticide Elang 480 SL Lindomin Gramoxone Topzone Metsulindo
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2014 1,985 850 73 50 52.76
2015 2,137 685 0 0 108.36
January – April 2016 659.46 209.08 0 0 6.59
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NO
CRITERION / INDICATOR CHECKLIST
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR Decis 2.5 EC Othene 75 SP Starthane 75 WG Klerat RM-B Marshal 5G Smart 486 AS
737.90 46 0 693 902 36
5.25 40 0 110 59 0
0.45 67 10 70 32 0
It shown the company's commitment to always reduce pesticide usage and give priority to the prevention of mechanical, biological and integrated pest management. It was evidence that there was no prophylactic use of pesticides in Estates. Pesticide only used and apply for weeds and pest. 4.6.4
Pesticides that are categorised as World Health Organisation Class 1A or 1B, or that are listed by the Stockholm or Rotterdam Conventions, and paraquat, are not used, except in specific situations identified in national Best Practice guidelines. The use of such pesticides shall be minimised and eliminated as part of a plan, and shall only be used in exceptional circumstances. a. Does the company have a complete YES Management of Hazardous and Organization already has a list of pesticides that are included in WHO class 1A, listing of WHO class 1A, class 1B, and class 1B, and Stockholm or Rotterdam Conventions pesticide. Toxic Material and Waste Stockholm or Rotterdam Conventions Procedure - EMSP-14 The organisation has commitment to minimise and eliminate use of paraquat. pesticide? Procedure OP 5.2.2 Guide to The record of minimisation of paraquat use: safe use of pesticide, March b. Is there a policy, procedure or 2008 management plan committing to minimise Year Bah Bulian Si Bulan Dolok and eliminate use of these pesticides and Form of Herbicide use Budget Realisa- Budget Realisa- Budget Realisa Commitment from BOD SK paraquat? tion tion tion #038/MGT/S&P/IX/2013 c. Are there records of minimisation of regarding minimise and 2013 65 20 244 243.6 300 159 pesticides and paraquat use? eliminate use of paraquat to Area Manager Agronomy, d. Where there is the use of the above 2014 0 20 0 0 142 73 Estate Manager, R&D, Legal pesticides or paraquat, has justification in 2015 0 0 0 0 0 0 Department, GS and ECSR, line with national best practice guidelines HRD dan OAD (Operational been documented? 2016 0 0 0 0 0 0 Administration) e. Does physical verification of inventory in the chemical store agree back to the In 2015 and 2016, no paraquat use in all Estates. inventory records?
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NO 4.6.5
CRITERION / INDICATOR OBSERVATIONS & OBJECTIVE COMPLIANCE SUMMARY OF FINDINGS FOR EACH INDICATOR CHECKLIST EVIDENCE (YES/NO) (M) Pesticides shall only be handled, used or applied by persons who have completed the necessary training and shall always be applied in accordance with the product label. Appropriate safety and application equipment shall be provided and used. All precautions attached to the products shall be properly observed, applied, and understood by workers (see Criterion 4.7). a. Is there SOP for chemicals/pesticides YES Management of Hazardous and The organisation has established procedure on safe use of chemical. Procedure handling? described on safe use of chemical, selection, use and storage of chemicals. Toxic Material and Waste Procedure - EMSP-14 b. Is there a training plan and training Spraying workers have received usage of limited pesticide training. Training was Certificate of training records for workers who apply or handle delivered by Pesticide and Fertilizer Controlling Commission of Agriculture Interview result during public pesticides? Department Nort Sumatera Province on 6 February 2014 and 8 July 2014. consultation c. Is there evidence that training has been Field observation at warehouse Training covered handling of concentrate agrochemical and spraying method conducted in an appropriate language including pesticide hazard. Dolok Mill and Estate, Si Bulan understood by the workers? Estate, Bah Bulian Estate Pesticides are always applied in accordance with the product label and d. Are pesticides handled, used or applied procedure. only by persons who have completed the Pesticides storage was locked areas with limited access. The storage was necessary training? ventilated. MSDS and hazard symbol label were provided nearby of pesticides. e. Are the workers involved in chemical Emergency shower and eye washer were also provided to anticipate in case of an handling or application able to emergency of pesticides handling. The possible spill was managed. Secondary demonstrate understanding of the containment was provided around the pesticides storage area. Spill kit was also hazards and risks related to chemicals provided in the area. PPE for handling of pesticides were provided including used when interviewed? boots, apron, safety glass, respiratory mask and hand gloves. PPE used was appropriate according to recommendations in any risk assessments. PPE f. Are pesticides always applied in provided and used can be easily replaced if damaged. accordance with the product label? g.
Are MSDS for pesticides used readily available for easy reference?
h.
Is appropriate safety and application equipment provided and used?
i.
Is PPE used appropriate according to recommendations in any risk assessments done?
j.
Is appropriate PPE provided and used, and can it be easily replaced if damaged?
k.
Does the management checked the workers usage of appropriate PPEs?
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No spraying activities during this audit in all Estates. Personnel interviewed (sprayer workers) during public consultation can clearly explain the type of work including work methods and goals, materials used (pesticides) including the dosage and hazards and risks, personal protective equipment and first aid. All the workers used the personal protective equipment meet with the safety rules and work instruction such as: Appron, safety goggles, mask, hand gloves and safety shoes. All precautions attached to the products properly observed, applied, and understood by workers. Mandor as person in charge to check the workers usage of appropriate PPEs. PPE was replaced if damaged.
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NO 4.6.6
4.6.7
CRITERION / INDICATOR OBSERVATIONS & OBJECTIVE COMPLIANCE SUMMARY OF FINDINGS FOR EACH INDICATOR CHECKLIST EVIDENCE (YES/NO) (M) Storage of all pesticides shall be according to recognised best practices. All pesticide containers shall be properly disposed of and not used for other purposes (see Criterion 5.3). Specific guidance for 4.6.6: Recognised best practice includes: Storage of all pesticides as prescribed in the FAO International Code of Conduct on the distribution and use of pesticides and its guidelines, and supplemented by relevant industry guidelines in support of the International Code (see Annex 1). Pesticides were stored in the determined area separated from fertiliser and other YES Procedure OP 5.2.2 Guide to a. Has the SOP for pesticide storage been chemicals. Pesticides storage was provided in warehouse. Pesticides storage was safe use of pesticide, March documented and implemented? locked areas with limited access. The storage was ventilated through cross flow 2008 b. Are all pesticides stored according to ventilation. MSDS and hazard symbol label were provided nearby of pesticides. The training list of attendance recognised best practices? Emergency shower and eyewash were also provided to anticipate in case of an and training material Field observation at warehouse emergency of chemical handling. PPE for handling of chemicals were provided c. Is there evidence that empty pesticide including boots, apron, safety glass, respiratory mask and hand gloves. The Dolok Mill and Estate, Si Bulan containers are properly stored and possible spill was managed. Secondary containment was provided around the Estate, Bah Bulian Estate disposed off and not used for other pesticides storage area. Spill kit was also provided in the area. All empty purposes? pesticides containers were triple rinsed and collected in the temporary storage of d. Is there evidence observed in the field hazardous waste. Pesticides containers were transported by authorised that pesticide containers are transporter, CV. Amindy Barokah. Records of pesticides containers quantity were indiscriminately disposed (in dump site) evident. Liquid waste from pesticides was reused for the next spraying or used for other purposes, .e.g. as waste applications also there are several ex-containers “jerry can” that may re-use for containers, flower pots? field application. Application of pesticides shall be by proven methods that minimise risk and impacts. a. Is there work instruction for pesticide OP-5 Mature Upkeep application? (Weeding, Pest & Disease, pruning, Census & survey b. Is there training provided on work operation, Fertilizer instruction including risk and impacts of Management, Empty bunch & pesticide applications? POME application). OP-3.2 Pest and Disease (Integrated Pest Management) Procedure OP 5.2.2 Guide to safe use of pesticide, March 2008 Training and dissemination record
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Pesticide application was described in OP-5 Mature Upkeep (Weeding, Pest & Disease, pruning, Census & survey operation, Fertilizer Management, Empty bunch & POME application) and OP-3.2 Pest and Disease (Integrated Pest Management). Training and dissemination on work instruction including risk and impacts of pesticide applications has been performed by the organization regularly. Training and dissemination records were sighted. No spraying activities during this audit in all Estates. Personnel interviewed (sprayer workers) during public consultation can clearly explain the type of work including work methods and goals, materials used (pesticides) including the dosage and hazards and risks, personal protective equipment and first aid.
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YES
Audit Report
NO 4.6.8
4.6.9
CRITERION / INDICATOR OBSERVATIONS & OBJECTIVE COMPLIANCE SUMMARY OF FINDINGS FOR EACH INDICATOR CHECKLIST EVIDENCE (YES/NO) (M) Pesticides shall be applied aerially only where there is documented justification. Communities shall be informed of impending aerial pesticide applications with all relevant information within reasonable time prior to application. a. Has aerial spray been applied? If yes, is Not Applicable No pesticides applied aerially. Not Applicable there documented justification? b.
Is the impact and risk associated with aerial application documented and made available?
c.
Are the identified affected communities informed of impending aerial pesticide applications with all relevant information within reasonable time prior to application?
Maintenance of employee and associated smallholder knowledge and skills on pesticide handling shall be demonstrated; including provision of appropriate information materials (see Criterion 4.8). a.
b.
Has the company provided information materials on pesticide handling to all employees and associated smallholders (if any) (see Criterion 4.8)? Is there evidence of periodic training (in appropriate language) of employees and associated smallholders on pesticide handling?
Note: Interview with workers and smallholders on their knowledge and skills in pesticides handling.
4.6.10
Training and dissemination record Training certificate Interview result during public consultation
There was no smallholder associated with estate.
YES
The organisation has provided information materials on pesticide handling to all employees. Training and dissemination on work instruction including risk and impacts of pesticide applications has been performed by the organization regularly. Training and dissemination records were sighted. Spraying workers have received usage of limited pesticide training. Training was delivered by Pesticide and Fertilizer Controlling Commission of Agriculture Department Nort Sumatera Province on 6 February 2014 and 8 July 2014. Personnel interviewed (sprayer workers) during public consultation can clearly explain the type of work including work methods and goals, materials used (pesticides) including the dosage and hazards and risks, personal protective equipment and first aid.
Proper disposal of waste material, according to procedures that are fully understood by workers and managers shall be demonstrated (see Criterion 5.3).
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NO a.
4.6.11
4.6.12
CRITERION / INDICATOR CHECKLIST Is there an SOP for proper disposal of waste material?
b.
Is there training provided to workers and managers on proper waste disposal?
c.
Is there evidence of implementation of proper ways for waste disposal by the company?
OBSERVATIONS & OBJECTIVE EVIDENCE Procedure OP 5.2.2 Guide to safe use of pesticide, March 2008 Procedure OP 5.8 Waste Management, March 2008 The training list of attendance and training material Field observation at warehouse, hazardous temporary storage at Dolok Mill and Estate, Si Bulan Estate, Bah Bulian Estate
SUMMARY OF FINDINGS FOR EACH INDICATOR All empty pesticides containers were triple rinsed and collected in the temporary storage of hazardous waste. Pesticides containers were transported by authorised transporter, CV. Amindy Barokah. Records of pesticides containers quantity were evident. Liquid waste from pesticides was reused for the next spraying applications also there are several ex-containers “jerry can” that may re-use for field application.
COMPLIANCE (YES/NO) YES
Training/briefing regarding disposal of waste material has been conducted to all workers and staffs. Based on interview with workers, they understood the disposal of waste material.
(M) Specific annual medical surveillance for pesticide operators, and documented action to treat related health conditions, shall be demonstrated. a.
Is there an updated list of pesticide operators?
b.
Is there records of annual medical surveillance of pesticide operators?
c.
Is there medical and treatment records of all pesticide operators?
List of Pesticides Operator 2015 MCU Recapitulation Report on 13 May 2015 for operator pesticide Medical records from polyclinic
List of pesticides operator was shown and updated periodically. There were 20 operators listed.
YES
Specific health surveillance has been performed for all pesticide operators included cholinesterase, spirometry and audiometry and the MCU report was evident. The surveillance was planned to be conducted once in a year. Medical records were available at polyclinic. The recommended actions were recorded and reported to estate manager. Socialization of health surveillance results have also been conducted to the workers.
(M) No work with pesticides shall be undertaken by pregnant or breast-feeding women. a.
Is there a policy statement preventing pregnant and breast-feeding women from handling pesticides?
Internal Memorandum No. 89/DL/INT/VI/2011 dated 13 June 2011.
b.
Is there a lists of female workers handling pesticides available?
Lists of workers handling pesticides 2015/2016
c.
Does the company have a system to
Interviews with sprayer workers
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Organization has established the policy statement preventing pregnant and breast-feeding women from handling pesticides. Policies related to the prevention of pregnancy in the handling of pesticides listed in Internal Memorandum No. 89/DL/INT/VI/2011 dated 13 June 2011.
YES (Major NCR 2016-07 closed)
In a memorandum explained that companies should not hire pregnant women to work as sprayer or relating to the use of pesticides.
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CRITERION / INDICATOR CHECKLIST identify pregnant and breast-feeding women?
NO
d.
Is there evidence showing that pregnant and breast-feeding women are not allowed to handle pesticides?
OBSERVATIONS & OBJECTIVE EVIDENCE on 23 – 26 May, 2016
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR List of female workers handling pesticides was available and well documented. However company have no system to identify pregnant and breast-feeding women. Last pregnancy checkup for sprayers was done in 2014, there was no pregnancy check in 2016. Major Non-conformance 2016-07: The Company has not implemented consistently mechanism to ensure that no pregnant woman worker who worked as pesticide spray. Last pregnancy checkup was done in 2014; there was no pregnancy check in 2015 and 2016.
4.7
An occupational health and safety plan is documented, effectively communicated and implemented. (M) A health and safety policy shall be in place. A health and safety plan covering all activities shall be documented and implemented, and its effectiveness monitored.
4.7.1
Guidance: Growers and millers should ensure that the workplace, machinery, equipment, transport and processes under their control are safe and without undue risk to health. Growers and millers should ensure that the chemical, physical and biological substances and agents under their control are without undue risk to health when appropriate measures are taken. All indicators apply to all workers regardless of status. The health and safety plan should also reflect guidance in ILO Convention 184 (see Annex 1). a. Is there a health and safety policy in OHS policy is established and approved by President Director on 12 September YES Health and Safety Policy place? 2014 consisting commitment to mitigate the risks of safety and health including (Major NCR OHS Target and Plan 2016 Is it written in an appropriate o Notes of Meeting Safety prevention from injury and work related disease. The documented manual of OHS 2016-08 closed) language? Committee Jan-March 2016 was established on 15th of September 2013, there were also several documented o Risk Assessment register procedures to support the OHS management system, such as: OHS Has the policy been approved by communication and consultation, purchasing and contractor evaluation, authorized personnel and dated? 2016 emergency response, OHS monitoring and measurement, employees’ health o OHS Training Records 2016 Does the policy cover mitigation of monitoring, etc. o Safety Performance Report risks to workers health and safety at o Evaluation Records of An OHS plan was documented as part of internal system such as objective, target all workplace activities? Emergency Simulation Are the workers aware of and and program, management review, internal audit program, emergency simulation o Measurement Report of program, monitoring and measurement program. understand the policy? OHS Parameters b. Is there a health and safety plan in o Valid permit of lifting OHS implementation regarding to OHS plan has been reviewed and observed place? monthly and also been reviewed yearly in OHS management review meeting. Last equipment, machinery etc. Does the plan include targets for
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NO
CRITERION / INDICATOR CHECKLIST improving occupational health and safety? Does the plan reflect guidance provided in the ILO Convention 184 (see Annex 1)?
c.
Is there evidence of implementation of the plan?
d.
Is the effectiveness of the health and safety plan monitored?
e.
Is the health and safety plan made publicly available?
f.
Is there an action plan if targets are not achieved?
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OBSERVATIONS & OBJECTIVE EVIDENCE o Safety Working Permit Records Observations of OHS implementation on: o Si Bulan Estate: Polyclinic, warehouse and workshop. o Bah Bulian Estate: harvesting activities, workshop, warehouse and polyclinic o Dolok Estate: harvesting activities, composting activities, warehouse, polyclinic and workshop. o Dolok Mill: loading/unloading, production process including utilities, workshop, storage and laboratory.
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR review is attended by management level (group manager) and relevant managers and chiefs. Minute of meeting is sight consisting information of reviewing OHS management system performance including OHS plan. General implementation of OHS Plan and Target were described as below: Hazard identification and risk analysis within the scope of oil palm mill processes activities and agricultural estate activities has already conducted, as it was considered the stages of OHS risk control hierarchy such as elimination, substitution, engineering, administrative and PPE (Personnel Protective Equipment) in order to OHS risk precautions. Several mandatory PPE were available by the organization to the employees and visitors such as: helmet, safety shoes, ear plugs, ear muffs and respirators. There were also deployed several PPE symbols at the at risk areas. Several working tools and machineries that utilized at Mill and Estate were also equipped with safety devices, such as knives cover those are used by harvester and also pressure release valve at mill processing machineries. Emergency response equipment were available by the organization at mill and estates such as first aid boxes those kept by each trained harvester supervisors and several hydrants and fire extinguishers at the risky areas, centre clinic and ambulance units were also available for each Estate. Accident reports and records recapitulations were reported periodically by OHS committee (P2K3) to local government Ministry of Manpower, there were also separated log book of accident records at the clinic. Moving parts of machine/equipment generally has been covered. Safety sign was provided to make workers aware on this hazard and risk. Housekeeping at Mill and Estate (office estate, storage, and workshop) in general was well monitored. Access for workers to workplace in general also good e.g. stair was provided with hand rail and platform at height was provided with border to prevent fall risk. Vertical stair in general has been provided with cover as well. Several license certificates were sighted for personnel who has special competencies such as: (SIO) for steam boilers operators and pressurized vessels SIO), operators of lifting equipment, Certified welder at mill, medical doctor certified industrial Hygienist (HIPERKES)
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CRITERION / INDICATOR CHECKLIST
NO
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR Major Non-conformances 2016-08
4.7.2
4.7.3
Fire Fighting Tank at Si Bulan Estate has not been equipped by permanent pump. Hydrant pump with diesel energy source has not been provided yet at Dolok mill.
(M) All operations where health and safety is an issue shall be risk assessed, and procedures and actions shall be documented and implemented to address the identified issues. All precautions attached to products shall be properly observed and applied to the workers. a.
Have risk assessments been conducted for all operations where health and safety is an issue?
b.
Does the risk assessment cover all the organization’s processes and activities?
c.
If any accidents had occurred, were these included in the risk assessments with action plans to prevent further recurrence?
d.
Have the procedures and action plans been documented and implemented to address the identified issues?
e.
Have all precautions attached to products been properly observed and applied to the workers?
List of identification and evaluation of OHS aspects Risk Assessment procedure P03
Risk Assessment for all operations regarding to health and safety was available. The risk assessment covers all the organization’s processes and activities such as: spraying, fertilizing, weeding, road maintenance, harvesting, transportation, warehouse, workshop, infrastructure, policlinic, office etc. It also covered all the risk attached to the products. Related risk assessments were reviewed if any accident or any change of process/machineries been occurred and the latest review was on 9 May 2016. Several procedures related to the issues (generally accident) have been documented and implemented. Moving parts of machine/equipment generally has been covered. Safety sign was provided to make workers aware on this hazard and risk. Housekeeping at Mill and Estate (office estate, storage, and workshop) in general was well monitored. Access for workers to workplace in general also good e.g. stair was provided with hand rail and platform at height was provided with border to prevent fall risk. Vertical stair in general has been provided with cover as well. The procedure for critical activities P-22 was established. The procedure was covering OHS control for working in confined space (e.g. cleaning of storage tank), working at height and welding. Work permit system was established but not well implemented, see non-conformance below. Several controls such as providing PPE and administration control were applied to workers in some activities such as: mill maintenance process, spraying activities, handling of pesticides etc.
YES
(M) All workers involved in the operation shall be adequately trained in safe working practices (see Criterion 4.8). Adequate and appropriate protective equipment shall be available to all workers at the place of work to cover all potentially hazardous operations, such as pesticide application, machine operations, and land preparation, harvesting and, if it is used, burning.
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NO a.
b.
c.
d.
CRITERION / INDICATOR CHECKLIST Are all workers involved in the operation appropriately trained in safe working practices (see Criterion 4.8)? Are OSH training programs and training records available and conducted by qualified persons?
OBSERVATIONS & OBJECTIVE EVIDENCE List Attendance of WI SMK3 Socialization PPE Procedure P-02 PPE Distribution Records
SUMMARY OF FINDINGS FOR EACH INDICATOR Safe working practices socializations have been conducted to related workers as WI SMK3 socialization. Samples taken for this socialization were for: harvesting and pesticides warehouse workers. The socializations were conducted by Safety Officer who has been qualified as Safety Officer by the government. However there was no this socialization for Si Bulan and Bah Bulian estate.
COMPLIANCE (YES/NO) YES (Major NCR 2016-09 closed)
The procedure for management of PPE has been established. The PPE for each activity was defined, e.g. working at Mill, working at generator set, welder, working at laboratory, harvester, sprayer, fertilizer storage, chemical storage, etc.
Is adequate and appropriate protective equipment available to all workers at the place of work to cover all potentially hazardous operations, such as pesticide application, machine operations, and land preparation, harvesting and, if it is used, burning?
Observation during this audit generally concluded that PPE has been well provided and implemented. Workers in harvesting activities and harvesting activities named Ismanto, Ilhamnudin, Syaiful Bahri, Purwosantoso, Tarigan and Sawaludin were interview during this audit and they were understood the risk of their work and the purpose of using PPE. List of PPE was evident included: ear plug, helmet, ear muff, safety shoes, gloves, googles, mask, apron etc. The List of PPE distribution was evident. However the mask given to the workers at all estate and mill were not appropriate for it was only dust mask.
Is PPE provided to workers and replaced when damaged? Does the organization maintain a list of PPE distribution? Are workers observed wearing appropriate PPE?
Major Non-conformances 2016-09 Mask used by workers with high risk hazardous operation such as operator at pesticide warehouse at all estates and mill, were not appropriate for the masks were only dust mask instead of chemical mask. Safe Working Practices Training has not been conducted to the workers at Si Bulan and Bah Bulian Estate.
4.7.4
(M) The responsible person/persons shall be identified. There shall be records of regular meetings between the responsible person/s and workers. Concerns of all parties about health, safety and welfare shall be discussed at these meetings, and any issues raised shall be recorded. a.
b.
Has the company identified the responsible person/persons to implement OSH? Are meetings between the responsible persons and workers conducted on a
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Approval Letter of Safety Committee from local government Notes of Meeting Safety Committee (P2K3) January –
Si Bulan Estate
YES
The responsible person was identified as Chief of P2K3 (Ir. H. Novizar) and P2K3 secretary (Musiati). The safety committee (P2K3) structure was evident and been approved by local authority Pemkab Serdang Bedagai, North Sumatra. Notes of Regular Meeting of Safety Committee with workers were evident.
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CRITERION / INDICATOR CHECKLIST regular basis, or as required by law, if any?
NO
c.
Are minutes of meeting recording attendees and issues discussed available?
d.
Are concerns of all parties about health, safety and welfare discussed at these meetings?
Note to Auditor: Interviews with workers reflect compliance to a-d above.
OBSERVATIONS & OBJECTIVE EVIDENCE April 2016
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR Samples were reviewed for January - April 2016. The meeting was planned once in a month as required by Permenaker 04/1987. Several concerns were discussed such as: chemical handling, request for safety signs and first aid box. The actions were monitored for realisation and reported to management and local authority. Bah Bulian Estate The responsible person was identified as Chief of P2K3 (Ir. H. Novizar) and P2K3 secretary (Rini Utami). The safety committee (P2K3) structure was evident and been approved by local authority Pemkab Simalungun, North Sumatra. Notes of Regular Meeting of Safety Committee with workers were evident. Samples were reviewed for January - April 2016. The meeting was planned once in a month as required by Permenaker 04/1987. Several concerns were discussed such as: MCU, PPE and first aid box. The actions were monitored for realisation and reported to management and local authority. Dolok Mill and Estate The responsible person was identified as Chief of P2K3 (Eddy T. Bangun) and P2K3 secretary (Sahat Sihotang). The safety committee (P2K3) structure was evident and been approved by local authority Pemkab Batu Bara, North Sumatra. Notes of Regular Meeting of Safety Committee with workers were evident. Samples were reviewed for January - April 2016. The meeting was planned once in a month as required by Permenaker 04/1987. Several concerns were discussed such as: regulation for hydrant, safety work permit, request for safety signs and first aid box. The actions were monitored for realisation and reported to management and local authority. Bah Lias Estate The responsible person was identified as Chief of P2K3 (Ir. Aswin Indra Utama) and P2K3 secretary (Imran Taufik). The safety committee (P2K3) structure was evident and been approved by local authority Pemkab Simalungun, North Sumatra.
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CRITERION / INDICATOR CHECKLIST
NO
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR Notes of Regular Meeting of Safety Committee with workers were evident. Samples were reviewed for January - April 2016. The meeting was planned once in a month as required by Permenaker 04/1987. Several concerns were discussed such as: PPE, chemical handling and first aid box. The actions were monitored for realisation and reported to management and local authority.
4.7.5
Accident and emergency procedures shall exist and instructions shall be clearly understood by all workers. Accident procedures shall be available in the appropriate language of the workforce. Assigned operatives trained in First Aid should be present in both field and other operations, and first aid equipment shall be available at worksites. Records of all accidents shall be kept and periodically reviewed. a. Are there SOPs for accidents and Emergency respond procedure written in Bahasa Indonesia was evident and YES P-10 - Emergency procedure emergencies? covered reporting, responsibility of all members of ERP Team, handling of ERP P-12 - Incident investigation situation, mitigating of ERP situation, etc. Some situations were identified such as Do these cover all major potential procedure earthquake, flooding, fire, hazardous spillage, explosion etc. emergencies, such as, but not List attendance of procedure limited to fire, chemical spillage, and socialization Incident/accident investigation procedure written in Bahasa Indonesia was potential natural disasters specific Training Certificate of First Aid evident. Accidents happened were investigated such as last accident on 28 for the region, e.g. earthquakes, Officer November 2015 at Dolok estate. The accident has been reported to local volcanoes, etc.? goverment. The record of accident investigation was evident and maintained Are accidents investigated and properly. There was no accident reported at Si Bulan, Bah Bulian and Bah Lias action taken to prevent recurrence? esate during 2015 and 2016. Are accident records provided to the Emergency respond procedure has been socialized to workers during the local authority in accordance with simulation of emergency situation on 8 June 2015 for Si Bulan estate, 11 May local legal requirements, if any? 2016 for Bah Bulian estate, 28 February 2016 for Dolok estate and Mill and 9 Available in the appropriate March 2016 for Bah Lias esate. The list of attendance was available. From language of the workforce? workers interview in the field it was observed that the workers were clearly b. Are the instructions on emergency understood of what is required in the procedure. procedures clearly understood by all Trained First Aid operators were provided in the field area. First Aid trainings have workers? been conducted for all estate and the list attendance was evident. The First Aid c. Are assigned operators trained in First equipment were available at worksites such as harvesting area, spraying area, Aid present in both field and other mill etc. and were checked in accordance with local regulation Permenaker operations? 15/2008. d. Is there records of training of the first aiders? e.
Is first aid equipment available at
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CRITERION / INDICATOR CHECKLIST worksites? Is the equipment available during conduct of field manual work?
NO
4.7.6
e.
Are first aid kits adequately stocked and regularly checked in accordance with local legal requirements?
f.
Are records of all accidents kept and periodically reviewed for continuous improvement?
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR
All workers shall be provided with medical care, and covered by accident insurance. a.
Is there evidence that all workers are provided with medical care (refer to Criterion 6.5.3), and covered by accident insurance by the company? For contract workers, the contract between the company and the contractor shall be in compliance.
b.
For accidents that have occurred, is there evidence that the affected workers received appropriate medical treatment, and was able to claim and receive compensation under the insurance policy (if relevant)?
c.
Is there evidence that the insurance policies are valid?
Slip payment of medical care and accident insurance
All workers at Dolok Mill, Si Bulan, Bah Bulian, Dolok and Bah Lias Estate have been covered by medical care and accident insurance given by company and government. However the daily workers (PHL) were not included in government insurance (BPJS Naker and Kesehatan) even though they have insurance from the company. Slip payment for the government insurance were available for payment on 18 April 2016. The insurances were still valid as seen by the recent slip payment for all estates and mill.
YES
Occupational injuries shall be recorded using Lost Time Accident (LTA) metrics. Specific Guidance for 4.7.7: The National Interpretation will define the metrics for LTA. For countries where there are no national interpretations, the growers will determine their own metrics. 4.7.7
For National Interpretation: National Interpretation will define the metrics for LTA. All legal requirements together with any local or national guidance on safe working practice in agriculture will be identified and used. It will also be important to identify what constitutes a ‘hazardous’ operation in the local context.
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NO a.
CRITERION / INDICATOR CHECKLIST Are occupational injuries recorded using Lost Time Accident (LTA) metrics?
OBSERVATIONS & OBJECTIVE EVIDENCE Accident Reports and Investigation Frequency Rate and Severity Rate Calculation Table
SUMMARY OF FINDINGS FOR EACH INDICATOR Safety performance for both mill and estates was calculated using frequency rate and severity rate. During 2015 and 2016 there was no incidents occurred at Si Bulan, Bah Bulian and Bah Lias estate so the value for FR and SR was: FR=0; SR=0.
COMPLIANCE (YES/NO) YES
Dolok Estate During 2015 and 2016 there was one accident occurred and the value for FR and SR was: FR=5.66; SR=12.33.
4.8
All staff, workers, smallholders and contract workers are appropriately trained. (M) A formal training programme shall be in place that covers all aspects of the RSPO Principles and Criteria, and that includes regular assessments of training needs and documentation of the programme.
4.8.1
Guidance: Workers should be adequately trained on: the health and environmental risks of pesticide exposure; recognition of acute and long-term exposure symptoms including the most vulnerable groups (e.g. young workers, pregnant women); ways to minimise exposure to workers and their families; and international and national instruments or regulations that protect workers’ health. The training programme should include productivity and best management practice, and be appropriate to the scale of the organisation. Training should be given to all staff and workers by growers and millers to enable them to fulfil their jobs and responsibilities in accordance with documented procedures, and in compliance with the requirements of these Principles, Criteria, Indicators and Guidance. Contract workers should be selected for their ability to fulfil their jobs and responsibilities in accordance with documented procedures, and in compliance with the requirements of the RSPO Principles, Criteria, Indicators and Guidance. Growers and millers should demonstrate training activities for schemes smallholders who provide Fresh Fruit Bunches (FFB) on a contracted basis. Workers on smallholder plots also need adequate training and skills, and this can be achieved through extension activities of growers or millers that purchase fruit from them, by smallholders’ organisations, or through collaboration with other institutions and organisations (refer to ‘Guidance for Independent Smallholders under Group Certification’, June 2010, and ‘Guidance on Scheme Smallholders’, July 2009) For individual smallholder operations, training records should not be required for their workers, but anyone working on the farm should be adequately trained for the job they are doing (refer to ‘Guidance for Independent Smallholders under Group Certification’, June 2010, and ‘Guidance on Scheme Smallholders’, July 2009). For National Interpretation: Appropriate occupational training qualifications will be identified.
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NO a.
b.
CRITERION / INDICATOR CHECKLIST Does the company maintain a list of staff, workers, smallholders and contract workers whom training must be provided to? Is there a formal training programme in place that covers all aspects of the RSPO Principles and Criteria? Does the formal training program include: Regular assessment of training needs of all staff, workers, smallholders and contract workers; Training for workers on smallholder plots; Documentation of all the training assessment needs, formal training conducted and the list of participants attending these formal training; Does the training for workers cover, at minimum, to the following: o The health and environmental risks of pesticide exposure; o recognition of acute and long-term exposure symptoms including the most vulnerable groups (e.g. young workers, pregnant women); o ways to minimise exposure to workers and their families; o International and national instruments or regulations that protect workers’
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OBSERVATIONS & OBJECTIVE EVIDENCE Training Identification Matrix Training Programme 2015 and 2016 Training Records (List Attendance, evaluation etc.)
SUMMARY OF FINDINGS FOR EACH INDICATOR Training need identification matrix 2016 has been conducted and the records were evident. Training programme 2016 were sighted and established based on the training needs identification and covered all aspects of the RSPO criteria such as safety, environment, social, best practice, human rights, management program, HCV and ethical.
COMPLIANCE (YES/NO) YES
The lists of attendance and the training handouts for year 2016 were evident such as:
SOP Processing on 17 May 2016
Safety Management System and Safety Committee on 28 January 2016.
Hazardous Material Handling on 12 January 2016
Sustainability Training on 28 March 2016
First Aid Training on 14 April 2016
Emergency Response Training on 28 January 2016
PROPER (environmental audit) on 17 February 2016
For year 2015 several trainings have been conducted such as:
Boiler on 11 November 2015
HIRAC on November 2015
Working Site Inspection on 28 April 2015
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CRITERION / INDICATOR CHECKLIST health; and o Productivity and best management practice.
NO
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR
Note to auditor: To interview staff, workers, smallholders and contract workers to verify that the training has been conducted effectively. 4.8.2
Records of training for each employee shall be maintained. a.
Are training records maintained for each employee?
Training attendance list Employee training record
Evidence of training for key person were verified and sighted and the records were maintained for each employee such as for Safety officer. The system to record personal training was established-in this record; the training which has been completed by each person was recorded in employee training records such as hazardous substance handling training, boiler training, safety officer, pesticides training, etc.
YES
PRINCIPLES 5: ENVIRONMENTAL RESPONSIBILITY AND CONSERVATION OF NATURAL RESOURCES AND BIODIVERSITY NO 5.1
5.1.1
CRITERION / INDICATOR OBSERVATIONS & OBJECTIVE COMPLIANCE SUMMARY OF FINDINGS FOR EACH INDICATOR CHECKLIST EVIDENCE (YES/NO) Aspects of plantation and mill management, including replanting, that have environmental impacts are identified, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continual improvement. (M) An environmental impact assessment (EIA) shall be documented. Guidance: The EIA should cover the following activities, where they are undertaken: • Building new roads, processing mills or other infrastructure; • Putting in drainage or irrigation systems; • Replanting and/or expansion of planting areas; • Management of mill effluents (Criterion 4.4); • Clearing of remaining natural vegetation;
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NO •
CRITERION / INDICATOR OBSERVATIONS & OBJECTIVE CHECKLIST EVIDENCE Management of pests and diseased palms by controlled burning (Criteria 5.5 and 7.7).
SUMMARY OF FINDINGS FOR EACH INDICATOR
COMPLIANCE (YES/NO)
Impact assessment can be a non-restrictive format e.g. ISO 14001 EMS and/or EIA report incorporating elements spelt out in this Criterion and raised through stakeholder consultation. Environmental impacts should be identified on soil and water resources (Criteria 4.3 and 4.4), air quality, greenhouse gases (Criterion 5.6), biodiversity and ecosystems, and people’s amenity (Criterion 6.1), both on and off-site. Stakeholder consultation has a key role in identifying environmental impacts. The inclusion of consultation should result in improved processes to identify impacts and to develop any required mitigation measures. For smallholder schemes, the scheme management has the responsibility to undertake impact assessment and to plan and operate in accordance with the results (refer to ‘Guidance for Independent Smallholders under Group Certification’, June 2010, and ‘Guidance on Scheme Smallholders’, July 2009). For National Interpretation: National Interpretation will consider any national legal requirements together with any other issues that are not required by law but are nevertheless important, e.g. independent social and environmental impact assessment (SEIA) for replanting may be desirable under specific situations. a. Has an EIA been conducted according to Initial Environmental Impact Assessment Document (PEL) of Dolok Mill and YES Document DPLH of Bah Lias the scope of operation covering at Estates was approved by Ministry of Agricultural on 18th of April 1994, RKL RPL Estate from BLH Simalungun minimum the following: was approved by Ministry of Agriculture on 28 May 1994 covered Dolok Estate, Regent No.188.45/1287/SekrtBah Lias Estate, Bah Bulian Estate, and Sei Bejangkar Estate. There was revision 2015 dated 3 December 2015 Building new roads, processing mills of DELH for each estate and approved by Head of BLH in every Regent. The EIA or other infrastructure; Document DPLH of Dolok Mill has been conducted and documented according to local requirements and include and Estate Putting in drainage or irrigation systems; #660/216/BLH/IX/2011 dated 29 consultation with relevant stakeholders to identify impact and to develop any mitigation measures. The result of consultation and the mitigation measures were September 2011 from BLH Replanting and/or expansion of stated at DPLH. Batubara Regent planting areas; Document DPLH of Dolok Management of mill effluents Document of environmental impact assessment covered: Estate (Simalungun Regent (Criterion 4.4); Water resources division) No.1290/Sekrt-2015 Clearing of remaining natural Biological diversity dated 3 December 2015 from vegetation; BLH Simalungun Regent Air quality Management of pests and diseased Document DPLH of Si Bulan Environment quality palms by controlled burning (Criteria Estate #18.32/660/348-A/2011 Economic, social and culture 5.5 and 7.7). dated 29 September 2011 from Building new roads, processing mills or other infrastructure; b. Has the EIA been conducted and Kantor Lingkungan Hidup Putting in drainage or irrigation systems; documented according to local Serdang Bedagai Regent Replanting and/or expansion of planting areas; requirements? Document DPLH of Bah Bulian Management of mill effluents; c. Does the assessment include consultation Estate #1289/Sekrt-2015 dated Clearing of remaining natural vegetation; with relevant stakeholders to identify 3 December 2015 from BLH Management of pests and diseases palms by controlled burning; impacts and to develop any mitigation Simalungun Regent Doc ID: 3843 / Issue Date May, 2014
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NO
5.1.2
5.1.3
CRITERION / INDICATOR CHECKLIST measures?
OBSERVATIONS & OBJECTIVE EVIDENCE EMS-P01 – Environmental aspect identification and evaluation procedure Environmental aspect and impact identification (EMS-F01 updated 15 December 2015)
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR
Result of stakeholder consultation
Dolok Mill and Estates implemented procedure for identifying environmental aspect and evaluating its impact based on Environmental Management System ISO 14001:2004. The result of environmental aspect and impact identification and evaluation was documented. As required by the procedure, the information of environmental is reviewed and updated annually. Last review and update of environmental aspect and impact register was performed in 15 December 2015.
Where the identification of impacts requires changes in current practices, in order to mitigate negative effects, a timetable for change shall be developed and implemented within a comprehensive management plan. The management plan shall identify the responsible person/persons. a. Is there an environmental management Dolok Mill and Estates implemented procedure for identifying environmental EMS-P01 – Environmental plan in place? aspect and evaluating its impact based on Environmental Management System aspect identification and ISO 14001:2004. As required by the procedure, the information of environmental evaluation procedure b. Is the environmental management plan is reviewed and updated regularly. Last review and update of environmental Environmental aspect and documented to include the following: aspect and impact register was performed on 15 December 2015. impact identification (EMS-F01 Identification of responsible person(s); updated 15 December 2015) Dolok Mill and Estates has ensured that all activities with significant environmental Potential impacts from current Environmental management impacts were managed. Control measure were defined and implemented for practices; plan 2016 ensuring that negative environmental impact were prevented or mitigated. There Measures to mitigate negative were several types of control measures defined: engineering control, impacts; administrative control and PPE. There were environmental management plan year Timetable for change (where changes 2016, some program has been implemented such as water measurement in current practices are required). analysis, air ambient and emission measurement, updating environmental aspect c. Has the environmental management plan and impact identification. been implemented?
YES
This plan shall incorporate a monitoring protocol, adaptive to operational changes, which shall be implemented to monitor the effectiveness of the mitigation measures. The plan shall be reviewed as a minimum every two years to reflect the results of monitoring and where there are operational changes that may have positive and negative environmental impacts.
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NO a.
5.2
CRITERION / INDICATOR CHECKLIST Does the plan incorporate a monitoring protocol?
b.
Is the monitoring protocol adaptive to operational changes?
c.
Is the monitoring protocol implemented to monitor the effectiveness of the mitigation measures?
d.
Is the plan reviewed at a minimum every two years to reflect the results of monitoring and where there are operational changes that may have positive and negative environmental impacts?
OBSERVATIONS & OBJECTIVE EVIDENCE Environmental management plan 2016
SUMMARY OF FINDINGS FOR EACH INDICATOR Dolok Mill and Estates has identification the environmental aspect and impact assessment and reviewed regularly (last reviewed 15 December 2015). The plan was include monitoring that adaptive to operational changes and effective of the mitigation measures.
COMPLIANCE (YES/NO) YES
The status of rare, threatened or endangered species and other High Conservation Value habitats, if any, that exist in the plantation or that could be affected by plantation or mill management, shall be identified and operations managed to best ensure that they are maintained and/or enhanced. (M) Information shall be collated in a High Conservation Value (HCV) assessment that includes both the planted area itself and relevant wider landscape-level considerations (such as wildlife corridors). Specific Guidance: This information will cover: • Presence of protected areas that could be significantly affected by the grower or miller; • Conservation status (e.g. IUCN status), legal protection, population status and habitat requirements of rare, threatened, or endangered (RTE) species that could be significantly affected by the grower or miller; • Identification of HCV habitats, such as rare and threatened ecosystems, that could be significantly affected by the grower or miller;
5.2.1
Guidance: This information gathering should include checking available biological records and consultation with relevant government departments, research institutes and interested NGOs if appropriate. Depending on the biodiversity values that are present, and the level of available information, some additional field survey work may be required. Wherever HCV benefits can be realised outside of the management unit, collaboration and cooperation between other growers, governments and organisations should be considered. For National Interpretation: Appropriate sources of information can include government or international lists of threatened species (‘red data lists’), national wildlife protection legislation, authorities responsible for protected areas and species, or relevant NGOs. Note:
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NO
CRITERION / INDICATOR OBSERVATIONS & OBJECTIVE COMPLIANCE SUMMARY OF FINDINGS FOR EACH INDICATOR CHECKLIST EVIDENCE (YES/NO) Operators need to consider a variety of land management and tenure options to secure HCV management areas in ways that also secure local peoples’ rights and livelihoods. Some areas are best allocated to community management and secured through customary or legal tenures, in other cases co-management options can be considered. Where communities are asked to relinquish rights so that HCVs can be maintained or enhanced by the companies or State agencies, then great care needs to be taken to ensure that communities retain access to adequate land and resources to secure their basic needs; all such relinquishment of rights must be subjected to their free, prior, and informed consent (see Criteria 2.2 and 2.3). a. Has a High Conservation Value (HCV) Identification of any protected, rare, threatened or endangered species and HCV YES HCV assessment report PT PP assessment been conducted and cover the habitat has been performed by SAIL Consulting. The HCV assessment performed Lonsum SiBulan Estate, Bah following: in 24 – 26 May 2014 in Si Bulan Estate, 28 – 30 May 2014 in Bah Bulian Estate Bulian Estate, Bah Lias Estate and 13 – 15 June 2014 in Dolok Estate. Peer Review was conducted by Dr. Presence of protected areas that and Dolok Estate 2014 Jarwadi Budi Hernowo Independent Consultant on June 2014. could be significantly affected by the Public consultation report on grower or miller; HCV assessment been conducted and cover the following: May and June 2014 Conservation status (e.g. IUCN Presence of protected areas that could be significantly affected by the status), legal protection, population HCV Map with scale 1 : 30.000 grower or miller; status and habitat requirements of rare, threatened, or endangered Conservation status (e.g. IUCN status), legal protection, population status (RTE) species that could be and habitat requirements of rare, threatened, or endangered (RTE) species significantly affected by the grower or that could be significantly affected by the grower or miller. miller. Identification of HCV habitats, such as Identification of HCV habitats, such as rare and threatened ecosystems, that rare and threatened ecosystems, that could be significantly affected by the grower or miller. could be significantly affected by the HCV Asessment performed by a qualified HCV assessor approval RSPO grower or miller; registered 2012 and 2013, comprised of: b. Was the HCV assessment performed by a - Sutopo, S. Hut (ahli pengelolaan dan konservasi biodiversity) qualified HCV assessor? - Sulfan Ardiansyah, S. Hut (ahli hidrologi dan konservasi tanah) c. Was the HCV assessment performed in consultation with relevant stakeholders? - Gilang Prastya, S.Hut (ahli social budaya) d.
Does the HCV assessment include checking of available biological records?
e.
Does the HCV assessment include both the planted area itself and relevant wider landscape-level considerations (such as wildlife corridors)?
f.
Was the HCV assessment performed in accordance to the latest methodology
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-
M. Sayidina Ali, Amd (ahli GIS)
Public consultation was carried out at Dolok Masihul Sub-district on 26 May 2014 in SiBulan Estate, 20 May 2014 in Bah Bulian Estate and 15 June 2014 in Dolok Estate, participated by people representing the local community and local government. It had intended to get aspiration and responses from stakeholders related identification result of HCV and its management. HCV assessment were include checking of available biological records in and
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CRITERION / INDICATOR CHECKLIST available at global and national level?
NO g.
Are identified HCVs mapped?
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR around of PT PP Lonsum. Based on final report of HCV identification and analysis in PT. PP Lonsum – SiBulan Estate, Bah Bulian Estate, and Dolok Estate it was demonstrated that the HCV assessment include both the planted area itself and relevant wider landscape-level considerations, e.g. the location of wildlife sightings. Assessment performed in accordance to the latest methodology available at global and national level. The method used in accordance with scientific standards and Identification Guide HCVA in Indonesia version 2 in 2008 compiled by a Indonesia consortium of HCV toolkit revision. Stages of identification activities include: -
Review of the data and information that has been available
-
Early identification of HCV
-
Drafting of plans for field surveys
-
Secondary data collection
-
Field survey
-
Mapping and landscaping
-
Assessment aspect fauna
-
Assessment aspects of flora
-
Assessment aspects of social, economic and cultural
-
Analysis and Mapping
HCV identified was mapped in HCV Map with scale 1 : 30.000. (M) Where rare, threatened or endangered (RTE) species, or HCVs, are present or are affected by plantation or mill operations, appropriate measures that are expected to maintain and/or enhance them shall be implemented through a management plan. 5.2.2
Specific Guidance: These measures will include: • Ensuring that any legal requirements relating to the protection of the species or habitat are met; • Avoiding damage to and deterioration of HCV habitats such as by ensuring that HCV areas are connected, corridors are conserved, and buffer zones around HCV areas are created;
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•
CRITERION / INDICATOR OBSERVATIONS & OBJECTIVE COMPLIANCE SUMMARY OF FINDINGS FOR EACH INDICATOR CHECKLIST EVIDENCE (YES/NO) Controlling any illegal or inappropriate hunting, fishing or collecting activities, and developing responsible measures to resolve human-wildlife conflicts (e.g. incursions by elephants).
a.
Are HCVs and/or RTEs present?
b.
If HCVs and/or RTEs are present, has a management plan containing appropriate measures that are expected to maintain and/or enhance them been prepared? The measures should include the following: Ensuring that any legal requirements relating to the protection of the species or habitat are met; Avoiding damage to and deterioration of HCV habitats such as by ensuring that HCV areas are connected, corridors are conserved, and buffer zones around HCV areas are created; Controlling any illegal or inappropriate hunting, fishing or collecting activities, and developing responsible measures to resolve human-wildlife conflicts (e.g. incursions by elephants).
NO
c.
Are the measures contained in the management plan actively implemented to maintain and/or enhance HCV values?
d.
Are the HCV values and the presence of RTEs periodically monitored?
e.
Are the field inspections conducted regularly to ensure implementation of mitigation plan (especially along areas bordering natural area)?
HCV assessment report PT PP Lonsum Si Bulan Estate, Bah Bulian Estate, Bah Lias Estate and Dolok Estate 2014 Public consultation report on May and June 2014 HCV Map with scale 1 : 30.000 Management and monitoring plans of HCV 2015/2016 HCV and RTE species monitoring report 2015/2016
There were HCV identified in PT PP Lonsum:
YES (Major NCR 2016-10 closed)
Si Bulan Estate : HCV 4.1 (area or ecosystem which important as water supply and flood control for downstream community): riparian buffer zone of Bahilang river, Gajah River, Besar River, Candu River and Delapan river with total area 6.543 ha HCV 4.2 (Areas Important for the Prevention of Erosion and Sedimentation): Pulau Besar with total area 1.666 ha HCV 6 (area which have important function for traditional culture identity of local community): cemetery, with total area 0.429 ha. Bah Bulian Estate :
“Evaluasi Program Pengelolaan HCV” (Evaluation of HCV program and management) period 2015
HCV 4.1 (area or ecosystem which important as water supply and flood control for downstream community): riparian buffer zone of Bah Bulian river, Pondok Teladan river and water spring in emplacement with total area 78.947 ha
Field observation to HCV area
HCV 4.2 (Areas Important for the Prevention of Erosion and Sedimentation): forest vegetation in Pondok Teladan with total area 175.69 ha HCV 6 (area which have important function for traditional culture identity of local community): cemetery, with total area 0.542 ha. Dolok Estate : HCV 4.1 (area or ecosystem which important as water supply and flood control for downstream community): riparian buffer zone of Bendungan river, Dam Wakit river, Ketapang river, Nurayah River, Tiran river and water spring in emplacement with total area 23.108 ha HCV 6 (area which have important function for traditional culture identity of local community): cemetery in division I, II and III, with total area 0.844 ha. Bah Lias Estate:
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NO
CRITERION / INDICATOR CHECKLIST
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR HCV 4.1 (area or ecosystem which important as water supply and flood control for downstream community): riparian buffer zone of Bah Bolon river, Habatu river, Manahul River, Panambean River, Bah Lias lake and Habatu lake with total area 50.64 ha HCV 4.2 (Areas Important for the Prevention of Erosion and Sedimentation): Panambean, pondok tengah and Sugaran with total area 92.145 ha HCV 6 (area which have important function for traditional culture identity of local community): cemetery in Pondok Tengah, Manahul and Sugaran with total area 0.463 ha. Management plan was available containing appropriate measures that are expected to maintain and/or enhance them, includes: -
Maintenance of HCV marking, manual upkeep, NPK fertilization by drilling at the riparian
-
Replacement of warning sign
-
Monitoring of riparian
-
Erosion handling
-
Monitoring the presence of wildlife
-
Monitoring of illegal hunting
Management plans and monitoring of HCV was breakdown in Division HCV Management Program, each Division assistant was responsible for the program and its implementation. However the measures contained in the management plan was not actively implemented to maintain and/or enhance HCV values. HCV values and the presence of RTEs were not monitored periodically by organization. Monitoring the kinds of protected animals which include in category RTE (Rare, Threat and Endangered) and protected species was not monitored yet. Major Non-conformance 2016-10:
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NO
CRITERION / INDICATOR CHECKLIST
OBSERVATIONS & OBJECTIVE EVIDENCE
5.2.3
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR Management and moniroting of HCV which was defined in HCV assessment report document were not applied consistently There were no field monitoring data of protected species (animal and plants) and HCV patrol Boundary of riparian was not demarcation yet and marked
There shall be a programme to regularly educate the workforce about the status of these RTE species, and appropriate disciplinary measures shall be instigated in accordance with company rules and national law if any individual working for the company is found to capture, harm, collect or kill these species. a. Does the company have policies or rules Policies and regulations related to the protection of protected species and RTE YES “Pedoman Kebijakan to protect RTE species? species defined in “Pedoman Kebijakan Manajemen Berkelanjutan” (Minor NCR Manajemen Berkelanjutan” (Sustainability Policy – Decree #001/DIR/IX/2014, dated 12 September 2014). 2016-11 closed) (Sustainability Policy – Decree b. Is there a programme to regularly Organisation has also installed warning sign in to preserve, maintain, and protect #001/DIR/IX/2014, dated 12 educate the workforce about the status of the protected species and do do not hunt wild and those who practice hunting will September 2014). the RTE species? be penalized in accordance with Law #5 year 1990. Warning signs prohibition of HCV management plan c. Is there evidence or action taken to hunting also installed at strategic locations in and around of plantation area. program 2015/2016 implement the rules and programs? E.g. Company has not defined and implementing the programme to regularly educate Inspections conducted to check no Field observation to HCV area the workforce about the status of the RTE species. traps/snares put up within or nearby areas. Company has been establish the HCV management plan program 2015, such as : d. Have appropriate disciplinary measures - Monitoring the existence of protected species been imposed in accordance with - Monitoring the condition of warning sign company rules and national law, should any individual working for the company is - Replacement of damaged warning sign found to have captured, harmed, - Monitoring of illegal hunting collected or killed any RTE species? -
Maintenance of HCV boundary markers
-
Upkeep oil palm trees manually and forbidden to apply pesticides / herbicides in the river border/riparian area
-
Monitoring of river border/riparian area
-
Dissemination and awareness to all workers to conserve the HCV and protected species
Implementation of the management plan has not been performed well and
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NO
CRITERION / INDICATOR CHECKLIST
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR consistently in the field. Special officer has not been appointed by organisation to monitor the protected animal and HCV areas. Organization has a policies or rules to protect RTE species based on UU No.5 / 1990. Penalties under the UU No.5 / 1990 "person who deliberately capture, injure, kill, keep, possess, maintain, transport, and trade in protected animals alive or dead can shall be punished with imprisonment of 5 years and a maximum fine 100.000.000, - (one hundred million). Penalties were communicated directly to all employees and the local community during HCV socialization and through the HCV warnings sign boards. Minor Non-conformance 2016-11
5.2.4
There is no programs that regularly performed by the company to all employees regarding the protection of protected species in plantation area. Implementation of the management plan has not been performed well and consistently in the field. Also special officer has not been appointed by organisation to monitor the protected animal and HCV areas.
Where a management plan has been created there shall be ongoing monitoring: • The status of HCV and RTE species that are affected by plantation or mill operations shall be documented and reported; • Outcomes of monitoring shall be fed back into the management plan. a. Does the management plan contain Management plan of HCV has been established based on HCV assessment in RKL-RPL report 2015/2016 ongoing monitoring of status of HCV and 2014. Ongoing monitoring of the HCV management plan is performed regularly in HCV management plan RTE species that are affected by monthly basis. Division Assistant is the personnel in charge for conducting the program 2015/2016 plantation or mill operations? monitoring of HCV. Records of HCV monitoring were available and documented in RKL-RPL report. Field observation to HCV area b. Is the status documented and reported? HCV management and monitoring result were documented and reported to BLH, c. Are the outcomes of monitoring fed back Dinas Kehutanan and Perkebunan each semester in RKL-RPL report. into the management plan?
YES (Minor NCR 2016-12 closed)
Monitoring of management plan was conducted periodically twice in a year (January – June and July – December).
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NO
CRITERION / INDICATOR CHECKLIST
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR Minor Non-conformance 2016-12
HCV and RTE species that are affected by plantation or mill operations have not been monitored, documented and reported in monthly basis. A record was not available. Evaluation of the monitoring program has not been performed and has not given the feedback on HCV management plan.
Where HCV set-asides with existing rights of local communities have been identified, there shall be evidence of a negotiated agreement that optimally safeguards both the HCVs and these rights. 5.2.5
Specific Guidance: For 5.2.5: If a negotiated agreement cannot be reached, there should be evidence of sustained efforts to achieve such an agreement. These could include third party arbitration (see Criteria 2.3, 6.3 and 6.4). a. Is there HCV set-asides with existing Based on HCV map and public consultation with local communities there was no YES HCV assessment report PT PP rights of local communities? HCV set-asides with existing rights of local communities. Lonsum SiBulan Estate, Bah Bulian Estate, Bah Lias Estate b. Who are the affected communities? HCV 6 identified in the plantation areas are public cemeteries which were made and Dolok Estate 2014 by company for employees and the surrounding communities who need c. Is the identified HCV areas mapped? graveyard. Companies allow the surrounding communities who will bury their Public consultation report on d. Is there evidence of stakeholder citizens in this area. May and June 2014 consultation and negotiated agreement, HCV Map with scale 1 : 30.000 in accordance to FPIC principles, with local community to optimally safeguard Management and monitoring both the HCVs and rights of local plans of HCV 2015/2016 communities? HCV and RTE species e. If a negotiated agreement cannot be monitoring report 2015/2016 reached, is there evidence of sustained efforts to achieve an agreement? Refer to specific guidance for 5.2.5.
“Evaluasi Program Pengelolaan HCV” (Evaluation of HCV program and management) period 2015 Field observation to HCV area
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NO 5.3
5.3.1
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR
Waste is reduced, recycled, re-used and disposed of in an environmentally and socially responsible manner.
(M) All waste products and sources of pollution shall be identified and documented. a.
Is there a registry/list of waste products produced?
b.
Is there a registry/list of pollution sources?
OP 5.8 – Waste Management Procedure, March 2008 EMSP – 14 – Management of Hazardous and Toxic Material and Waste Procedure Environmental aspect and impact identification (EMS-F01 updated 15 December 2015)
Identification of waste and pollution sources from Dolok Mill and Estates activities was evident. The source of pollution, type and control method of waste was recorded at OP 5.8 – waste management procedure. The waste products from estate generally were domestics waste and also several hazardous waste from estate operations activities as detailed below (but not limited):
Ex-pesticides containers (bottles and jerry cans) Used battery from the heavy vehicles Plastics Medical waste (first aid usage) Polybag Rags and fertilizer containers Emissions from vehicles
While at the Mill it was several hazardous waste generated from the mill operations, in detailed below (but not limited):
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POME Palm shell Fibre Empty bunch Boiler ash Chemicals jerry can and bottles Gunny sacks from chemicals materials Sacks resulted from fertiliser materials Welding materials from workshop activities Lubricants from workshop materials Contaminated rags from workshop activities
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YES
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NO
OBSERVATIONS & OBJECTIVE EVIDENCE
5.3.2
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR Usage lamps Tires Usage batteries Usage oil filters Emissions from vehicles and other engines (generator, boilers
(M) All chemicals and their containers shall be disposed of responsibly. a.
Is there an inventory of chemicals and their containers that are used and kept on site?
b.
How are chemicals and their containers stored and disposed off? Is it in accordance to best practices? (as prescribed by manufacturers’ labels, local requirement, national or international best practice)
c.
Are collection and disposal records of chemicals and their containers maintained?
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OP 5.8 – Waste Management Procedure, March 2008 EMSP – 14 – Management of Hazardous and Toxic Material and Waste Procedure Record of hazardous and nonhazardous waste Hazardous waste manifests Observation to temporary storage of hazardous waste at mill and estates Permit of temporary storage of hazardous waste for Dolok Mill and Estate, Si Bulan Estate, Bah Bulian Estate, Bah Lias Estate Permit temporary collect of hazardous waste for CV Amindy Barokah from Governor North Sumatera No.188.44/452/KPTS/2014 dated 19 June 2014 valid for 5 years
The disposal methods were described on documented procedure OP 5.8 – Waste Management dated March 2008, detailed as follows: Waste category such as: 1. 2.
YES (Major NCR 2016-13 closed)
Hazardous waste Non-hazardous waste, separated for non-organics (economic and noneconomic value) and organics (economic and non-economics)
Disposed methods: 1. 2. 3. 4. 5.
TPA (organics and non-organics) TPS B3 managed by licensed vendors Reuse Send back to supplier/vendors Burnt as boiler fuel
All empty agrochemical containers were triple rinsed, the jerry can were reused to spraying activities, while bottles containers were stored in the designated area and categorized as hazardous waste (B3). Records of chemical containers quantity disposed were evident. Liquid waste from agrochemical was reused for the next spraying application. Several ex-chemicals materials containers that use at mills and estates operations such as laboratory chemicals ex-containers, boiler additive liquids, lubricants, workshop materials, use battery, medical waste, ex-agrochemical container, used filter, etc. were categorized as hazardous wastes that stored at hazardous waste temporary warehouse (TPS B3) that will be managed by licensed vendor: CV.
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COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR Amindy Barokah for transporter and collector. License of hazardous wastes temporary storage (TPS B3) available for: Dolok Mill and Estate Licence from Head of Batubara Regent No.660/99.a/TPS-LB3/LH/II/2014 dated 27 February 2014 valid for 5 years. The licence defined that the limit time was 180 days because produce (less than) < 50 kg/day. Bah Lias Estate Licence from Head of BLH Simalungun Regent No. 188.45/101/Sekrt-2014 dated 6 February 2014 valid for 3 years. Si Bulan Estate Licence from Head of Kantor Lingkungan Hidup Serdang Bedagai Regent No.18.32/660/51/2014 dated 17 February 2014 valid through 3 years. Bah Bulian Estate Licence from Head of BLH Simalungun Regent No.188.45/102/Sekrt-2014 dated 6 February 2014 valid for 3 years. Manifest of disposal were sighted for 10th July 2015 for Bah Lias Estate, 11th July 2015 for Dolok Mill and Estate, and 27th July 2015 for Si Bulan and Bah Bulian Estate. Others records sighted, such as “Laporan pengelolaan LB3” Period January - December 2015 and January – March 2016. Major Non-Conformance 2016-13:
Medical waste was stored at hazardous waste temporary storage at estates more than 180 days as stated by permit, the last transported on July 2015
A waste management and disposal plan to avoid or reduce pollution shall be documented and implemented. 5.3.3
Guidance: The waste management and disposal plan should include measures for: • Identifying and monitoring sources of waste and pollution.
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NO
CRITERION / INDICATOR OBSERVATIONS & OBJECTIVE COMPLIANCE SUMMARY OF FINDINGS FOR EACH INDICATOR CHECKLIST EVIDENCE (YES/NO) • Improving the efficiency of resource utilisation and recycling potential wastes as nutrients or converting them into value-added products (e.g. through animal feeding programmes). • Appropriate management and disposal of hazardous chemicals and their containers. Surplus chemical containers should be reused, recycled or disposed of in an environmentally and socially responsible way using best available practices (e.g. returned to the vendor or cleaned using a triple rinse method), such that there is no risk of contamination of water sources or risk to human health. The disposal instructions on the manufacturers’ labels should be adhered to. Use of open fire for waste disposal should be avoided. For National Interpretation: National Interpretation (or an RSPO recognised parallel means) should include, as appropriate: details of relevant national laws or policies, a list of waste types (hazardous, non-hazardous, domestic, etc.) which must be considered, any types of disposal which are not acceptable (e.g. untreated waste water may not be discharged directly into streams or rivers (see Criterion 4.4), existing best practice guidelines on recycling and re-use of nutrients, managing effluent ponds, increasing mill extraction efficiency and appropriate disposal of wastes. a. Is there a documented waste management OP 5.8 – Waste Management Procedure waste handling including hazardous waste handling has been YES and disposal plan to avoid or reduce established and implemented. The procedure required waste to be segregated Procedure, March 2008 pollution? from point of sources. In addition Mill and Estates also established waste register, EMSP – 14 – Management of which described wastes sources from each activity/location, its classification Hazardous and Toxic Material b. Does the waste management and disposal (organic, inorganic or hazardous), and its disposal, reusing or recycling. EFB was and Waste Procedure plan, at minimum, include measures for: used for fertiliser by composting in Dolok Estate. Fibre and Shell from Dolok Mill Environmental aspect and Identifying and monitoring sources of was used for boiler feed. Rest of shell was sent to the sister company. impact identification (EMS-F01 waste and pollution? updated 15 December 2015) It was observed that organic and inorganic waste was segregated at point of Improving the efficiency of resource Observation at mill and estates source. Mill and Estate including housing has provided waste bin for each type of utilisation and recycling potential of waste. Organic and inorganic wastes from Mill and Estates including housing wastes as nutrients or converting were disposed to landfill in the Estate area. Areas of organic and inorganic them into value-added products (e.g. wastes disposal was far from housing, in the flood-free area and not in swamp through animal feeding area and completed with warning sign not burning wastes. programmes)? Appropriate management and There are evident the measurement periodical report include air ambience quality; disposal of hazardous chemicals and emissions of vehicles and other engines (boilers, generators, etc.). There was no their containers? plan/programme on how to reduce the fuel usage and environmentally friendly but Reduction, re-use and recycle of Dolok Mill and Estates have been implemented some action to reduce the fuel waste? usage such as with use the fibre and shell for boiler feed. The last measurement c. Is there evidence that the plan has been implemented? d. Is there evidence that waste has not been disposed off using open fire?
was performed on 17 November 2015 by “Balai Keselamatan dan Kesehatan Kerja Medan”. Boiler emission in accordance to PermenLH 7/2007, generator emission in accordance to PermenLH 13/2009, vehicle emission in accordance to PermenLH 5/2006. Hazardous wastes generated by Mill and Estate are used oil, used oil filter, used battery, medical waste, jerry can ex-pesticide, jerry can ex-chemical, and used
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NO
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR lamp. Temporary storage of hazardous waste was available to collect hazardous waste prior to be transported by licensed vendor. Disposal of hazardous waste was completed with manifest. Manifest of disposal were sighted for 10th July 2015 for Bah Lias Estate, 11th July 2015 for Dolok Mill and Estate, and 27th July 2015 for Si Bulan and Bah Bulian Estate.
5.4
Efficiency of fossil fuel use and the use of renewable energy is optimised. A plan for improving efficiency of the use of fossil fuels and to optimise renewable energy shall be in place and monitored.
5.4.1
Guidance: Renewable energy use per tonne of Crude Palm Oil (CPO) or palm product in the mill should be monitored. Direct fossil fuel use per tonne of CPO or Fresh Fruit Bunches (FFB) should be monitored. Energy efficiency should be taken into account in the construction or upgrading of all operations. Growers and millers should assess the direct energy use of their operations, including fuel and electricity, and energy efficiency of their operations. This should include estimation of fuel use by on-site contract workers, including all transport and machinery operations. The feasibility of collecting and using biogas should be studied if possible. a. Is there a plan for improving efficiency of Dolok mill and estates has been develop the programme/plan on how to conduct YES Records of fossil fuel the use of fossil fuels and to optimise efficiency for utilization of fossil fuel by develop the standard to manage the consumption 2014 and 2015 renewable energy? consumption each of vehicles and electricity generator within litre per hours both Records of renewable energy for organization owned and contractors; the monitoring conducted by monthly and (fibre and shell) consumption b. Has the plan been implemented and is it reported to technical department. 2014 and 2015 monitored? Also it was developed the plan/programme regarding optimization of renewable c. Does the monitoring system encompass energy known as fibre and shell as boiler fuels at mills, monitoring also conducted the following : monthly by calculate the fibre and shell and utilize as boiler fuels whether during Renewable energy use/tCPO or palm the construction or upgrading of all operations. product; d.
Direct fossil fuel use/tCPO or tFFB; Estimated fuel use by on-site contract workers and transport and machinery operations; Electricity use in operations.
Was energy efficiency taken into account during the construction or upgrading of all
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There are monitoring records sighted regarding the utilization of fossils fuels and fibre shell that presented as below: Renewable Energy (Fibre and shell)
2014
2015
Tonnage
9,358.43
8,387.14
1,530.11
CPO (ton)
43,817.60
41,704.24
6,763.82
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NO e.
OBSERVATIONS & OBJECTIVE EVIDENCE
Ton shell/ton CPO
Has studies on the feasibility of collecting and using biogas been carried out?
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR 0.21
0,20
0,22
Fossil fuel was used for heavy equipment, diesel generator, FFB transportation, and contractor user. Unit Consumer
2014
2015
Si Bulan Estate
129,533
117,393
Bah Bulian Estate
102,600
89,592
Bah Lias Estate
403,886
279,670
Dolok Estate
169,102
168,644
Dolok Mill
167,401
159,519
From the data shown that fossil fuel consumption decrease from 2014 to 2015. So far there is a plan regarding feasibility of collecting and using biogas, however it still on management discussion. 5.5
Use of fire for preparing land or replanting is avoided, except in specific situations as identified in the ASEAN guidelines or other regional best practice. (M) There shall be no land preparation by burning, other than in specific situations as identified in the ‘Guidelines for the Implementation of the ASEAN Policy on Zero Burning’ 2003, or comparable guidelines in other regions.
5.5.1
Guidance: Fire should be used only where an assessment has demonstrated that it is the most effective and least environmentally damaging option for minimising the risk of severe pest and disease outbreaks, and exceptional levels of caution should be required for use of fire on peat. This should be subject to regulatory provisions under respective national environmental legislation. Extension/training programmes for associated smallholders may be necessary. a. Does the company have a zero burning Standard Operating Procedure policy or any statement on zero burning? OP 2.8 Land Preparation – Strategies and Parameters, b. Does the company have SOPs for land dated March 2008 preparation which mentions zero WI OP 2.12 Preparation and burning?
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The organisation has policy of zero burning which documented in procedure of land preparation – strategies and parameters no. OP 2.8 revises on March 2008: “The use any fire with any reason is strictly prohibited, such as activities in land preparation of new developments areas and replanting”. Realisation of land preparation for replanting activities was well documented and reported including
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YES
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NO c.
CRITERION / INDICATOR CHECKLIST Was land prepared using the burn method? If yes, was it based on the specific situations identified in the ‘Guidelines for the Implementation of the ASEAN Policy on Zero Burning’ 2003, or comparable guidelines in other regions?
d.
Has the policy been implemented throughout the operations?
e.
Is there training programmes for associated smallholders on zero burning where appropriate?
OBSERVATIONS & OBJECTIVE EVIDENCE Planting dated September 2013 Letter of intent to CV Surya Citra Mandiri No.011/OAD/ContLC/SIE/I/2015 and No.020/OAD/ContLC/SIE/IX/2015
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR activities of felling, uprooting, stacking, ploughing, making terrace, making road. The procedure of replanting mentioned that field assistant should do an inspection to ensure that the contractor does not doing burning for land preparation for replanting. Inspection report was evident. Last replanting was performed on 23 February – 8 July 2015 covered 196.51 Ha and 18 August – 20 November 2015 covered 108.83 Ha at Si Bulan Estate with CV Surya Citra Mandiri as contractor for felling clearing. No fire used for preparing land for replanting.
Where fire has been used for preparing land for replanting, there shall be evidence of prior approval of the controlled burning as specified in ‘Guidelines for the Implementation of the ASEAN Policy on Zero Burning’ 2003, or comparable guidelines in other regions. 5.5.2
For National Interpretation: National Interpretation will identify any specific situations where such use of fire may be acceptable, for example through reference to ‘Guidelines for the Implementation of the ASEAN Policy on Zero Burning’ 2003, or comparable guidelines in other regions. a. Where fire has been used for preparing Not Applicable Not Applicable N/A land for replanting, is there evidence of prior approval of the controlled burning as specified in ‘Guidelines for the Implementation of the ASEAN Policy on Zero Burning’ 2003, or comparable guidelines in other regions? b.
What was the justification for using fire?
Preamble 5.6
Growers and millers commit to reporting on operational greenhouse gas emissions. However, it is recognised that these significant emissions cannot be monitored completely or measured accurately with current knowledge and methodology. It is also recognised that it is not always feasible or practical to reduce or minimise these emissions. Growers and millers commit to an implementation period until the end of December 2016 for promoting best practices in reporting to the RSPO, and thereafter to public reporting. Growers and millers make this commitment with the support of all other stakeholder groups of the RSPO.
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CRITERION / INDICATOR CHECKLIST
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR
Plans to reduce pollution and emissions, including greenhouse gases, are developed, implemented and monitored. (M) An assessment of all polluting activities shall be conducted, including gaseous emissions, particulate/soot emissions and effluent (see Criterion 4.4).
5.6.1
Specific Guidance: Where practically feasible, operations should follow best management practices to measure and reduce emissions. Advice on this is available from the RSPO. a. Has an assessment of all polluting Identification of pollution and emission sources at Dolok Mill activities was evident. Environmental aspect and activities been conducted including The source of pollution, type of pollution and its control was documented, e.g. impact identification (EMS-F01 gaseous emissions, particulate/soot stack of boiler, electricity generator and heavy equipment, methane from WWTP, updated 15 December 2015) emissions and effluent (see Criterion composting, and fertiliser. 4.4)? The information of pollution and emission sources at Dolok mill and estates was b. Is there a documented list of all identified reviewed and updated on 15 December 2015. polluting activities? Monitoring of pollution and emission quality of sources identified has been programmed. Monitoring and measurement results for 1st and 2nd semester 2015 were sighted for boiler emission against Environment Ministry Decree #07/2007, diesel electricity generator against Environment Ministry Decree #Per13/Menlh/2009, vehicle and heavy equipment emission against Environment Ministry Decree #05/2006, odour emission against Environment Ministry Decree #50/Menlh/11/96, ambient noise against Environment Ministry Decree #48/Menlh/11/96, also ambient air quality against Government Regulation #41/1999.
YES
(M) Significant pollutants and greenhouse gas (GHG) emissions shall be identified, and plans to reduce or minimise them implemented. 5.6.2
Specific Guidance: For 5.6.2: Plans will include objectives, targets and timelines. These should be responsive to context and any changes should be justified. For 5.6.2 and 5.6.3: The treatment methodology for POME will be recorded. The source of greenhouse gas emission has identified on Environmental aspect Is there a documented list of all identified Environmental aspect and and impact identification, updated on 15 December 2015, as listed below: significant pollutants and GHG impact identification (EMS-F01 emissions? updated 15 December 2015) 1. Methane from POME and composting at mill 2. Fossil fuels emissions from vehicles and engines Are there plans to reduce or minimise the 3. Chemical fertilizer identified pollutants and GHG emissions? 4. Electricity usage Do the plans include objectives, targets
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YES (Major NCR 2016-14 closed)
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NO
Are the plans being implemented? Was there any changes? Is it justified?
Is the treatment methodology for POME recorded? (refer to C 4.4.3)
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR 5. Chemical spraying Dolok Mill waste water was processed through a series of waste water treatment ponds: two acidification ponds, one anaerobic pond, and one facultative pond. Process parameter monitoring and maintenance of the ponds were sighted. Quality of waste water effluent is monitored monthly in line with the requirements. The results of monitoring of waste water effluent were reviewed including measurement of BOD, COD, oil and fat, N total result of discharge effluent conforms to the limits for parameters. There was no GHG reduction plan as stated in non-conformance section in this report. Major Non-Conformance 2016-14: There were no plans to reduce or minimise the identified pollutant and GHG emission that include the objective, target, and timelines for reduction.
A monitoring system shall be in place, with regular reporting on progress for these significant pollutants and emissions from estate and mill operations, using appropriate tools. Specific Guidance: For 5.6.3 (GHG): For the implementation period until December 31st 2016, an RSPO-endorsed modified version of PalmGHG which only includes emissions from operations (including land use practices) can be used as a monitoring tool. 5.6.3
For 5.6.3: In addition, during the implementation period, growers will start to assess, monitor and report emissions arising from changes in carbon stocks within their operations, using the land use in November 2005 as the baseline. The implementation period for Indicator 5.6.3 is the same implementation period for Criterion 7.8. During the implementation period, reporting on GHG will be to a relevant RSPO working group (composed of all membership categories) which will use the information reported to review and fine tune the tools, emission factors and methodologies, and provide additional guidance for the process. Public reporting is desirable, but remains voluntary until the end of the implementation period. During the implementation period the RSPO working group will seek to continually improve PalmGHG, recognising the challenges associated with measuring GHG and carbon stock. PalmGHG or RSPO-endorsed equivalent will be used to assess, monitor and report GHG emissions. Parties seeking to use an alternative to PalmGHG will have to demonstrate its equivalence to the RSPO for endorsement. a. Is there a system in place to monitor The GHG emission calculation for Dolok Mill uses YES Email and calculation of GHG emission of pollutants including RSPO calculation Year PalmGHG V 2.1.1. As RSPO requirement. The reporting was conducted greenhouse gases from estate (plantation) assessment 2015 reporting date periodically to the RSPO interest (Ms. Melissa Chin). Reports was sighted that and mill operations? 4 May 2016 summarized as below: b. Is there regular reporting of the monitoring outcomes? How often and to whom is
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NO c.
Is the monitoring and reporting conducted using appropriate tools? What tool is being used to assess, monitor and report on GHG emissions?
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR Own Crop
Group
Out grower
Total field emissions (tCO₂e)
13,838.09
0
0
Total mill emissions (tCO₂e)
15,988.22
0
0
Please refer to specific guidance for GHG requirements.
PRINCIPLES 6: RESPONSIBLE CONSIDERATION OF EMPLOYEES AND INDIVIDUALS AND COMMUNITIES AFFECTED BY GROWERS AND MILLS NO 6.1
6.1.1
CRITERION / INDICATOR OBSERVATIONS & OBJECTIVE COMPLIANCE SUMMARY OF FINDINGS FOR EACH INDICATOR CHECKLIST EVIDENCE (YES/NO) Aspects of plantation and mill management that have social impacts, including replanting, are identified in a participatory way, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continual improvement. (M) A social impact assessment (SIA) including records of meetings shall be documented. Guidance: Identification of social impacts should be carried out by the grower with the participation of affected parties, including women and migrant workers as appropriate to the situation. The involvement of independent experts should be sought where this is considered necessary to ensure that all impacts (both positive and negative) are identified. Participation in this context means that affected parties are able to express their views through their own representative institutions, or freely chosen spokespersons, during the identification of impacts, reviewing findings and plans for mitigation, and monitoring the success of implemented plans. Potential social impacts may result from activities such as: building new roads, processing mills or other infrastructure; replanting with different crops or expansion of planting area; disposal of mill effluents; clearing of remaining natural vegetation; changes in employee numbers or employment terms; smallholder schemes. Plantation and mill management may have social impacts (positive or negative) on factors such as: • Access and use rights; • Economic livelihoods (e.g. paid employment) and working conditions; • Subsistence activities; • Cultural and religious values; • Health and education facilities; • Other community values, resulting from changes such as improved transport /communication or arrival of substantial migrant labour force. The review can be done (once every two years) internally or externally.
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NO
CRITERION / INDICATOR CHECKLIST
OBSERVATIONS & OBJECTIVE EVIDENCE
SUMMARY OF FINDINGS FOR EACH INDICATOR
COMPLIANCE (YES/NO)
For National Interpretation: As social impacts are particularly dependent on local social conditions, National Interpretation will identify the important issues, and methodologies for collecting data and using the results. This should include adequate consideration of the impacts on the customary or traditional rights of local communities and indigenous people, where these exist (Criteria 2.3 and 6.4). a. Has an SIA been conducted? When Social impact assessment has been conducted by the organisation in Bah Lias YES Sosial Impact Assessment was the last SIA conducted? Estate and Dolok Estate. Assessment was conducted by internal assessor (Major NCR Report PT. PP Lonsum – Bah through PRA (Participatory Rural Appraisal) and interview with people who get 2016-15 closed) Lias and Dolok Estate, 2015 b. Is the process in conducting the SIA direct impact of the presence of Bah Lias and Dolok Estate. Asessment was and the findings documented? conducted on 8th February 2015. c. Does the SIA cover all of the potential Social impact assessment (SIA) including records of meetings has been impact factors, including: documented in Laporan Sosial Assessment PT. PP Lonsum Dolok and Bah Lias. Access and use rights; Scope of assessment covered villages Dolok Estate: Bangun Sari, Binjai Baru, Economic livelihoods (e.g. paid Lalang, Mangkai lama, Nagori Nanggar Bayu, Nagori Talun Saragih, employment) and working Perkebunan Dolok, Sei Balai, Sei Bejangkar, Sei Muka, Siajam, Suka Ramai, conditions; Sumber Padi, Kelurahan Lima Puluh; Bah Lias Estate : Sugarang Bayu, Nagori Subsistence activities; Bandar Pulo, Lias Baru, Bandar Jawa, Panei Raya, Perdagangan III. Evidence Cultural and religious values; of participatory action from local communities was also sighted in related SIA Health and education facilities; documentation including photos. Some aspects were considered during Other community values, assessment such as: resulting from changes such as Access and use rights; improved transport Economic livelihoods and working conditions; /communication or arrival of substantial migrant labour force. Subsistence activities; Cultural and religious values; Health and education facilities; Other community values. Positive impacts on SIA were identified, such as: -
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Program CSR Work opportunities Road access Sources of livelihood General infrastructure (praying facility, sport facility, etc.) community economic drivers
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NO
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR Negative impacts on SIA was identified, such as: -
Air and water pollution Increasing crime rate Land conflict
Major Non-conformance 2016 - 15 : 6.1.2
Social Impact Asessment (SIA) di Si Bulan Estate, Bah Bulian Estate has not been done
(M) There shall be evidence that the assessment has been done with the participation of affected parties. a.
Does the assessment involve consultation with the affected parties? Who are the affected parties?
Sosial Impact Assessment Report PT. PP Lonsum – Bah Lias and Dolok Estate, 2015
b.
Is there record of how the participatory assessment has been conducted? Were the affected parties able to express their views through their own representative institutions, or freely chosen spokespersons, during the identification of impacts, review of findings and planning for mitigation?
Public consultation with stakeholder on May 23th – 25th, 2015
Social Impact assessment involve consultation with the affected parties in each villages around estate that was village head and public figure. However there was no sufficient evidence that all affected parties was involve in this assessment.
YES (Major NCR 2016-15 closed)
SIA method is done by PRA (Participatory Rural Appraisal) through participatory discussions and interviews with villagers to dig deeper into the information and the potential that has been identified during the PRA. Attendance list and photograph of social impact assessment were available. Assessment has been done with the participation such as head of villages and public figure. Major Non-conformance 2016-15 No evidence that the assessment has been done with the participation of affected parties Consultation management plans and monitoring the social impact to the community has not been communicated by organisation to affected communities.
6.1.3
(M) Plans for avoidance or mitigation of negative impacts and promotion of the positive ones, and monitoring of impacts identified, shall be developed in consultation with the affected parties, documented and timetabled, including responsibilities for implementation. a. Is there any documented record to Social Impact assessments involve consultation with the affected parties in each YES Sosial Impact Assessment outline the plan on mitigation, village around estate that was village head and public figure. However there was (Major NCR Report PT. PP Lonsum – Bah implementation and monitoring 2016-15 closed)
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CRITERION / INDICATOR CHECKLIST according to the SIA report?
NO b.
Have plans for avoidance or mitigation of negative impacts and promotion of the positive ones, and monitoring of impacts been developed?
c.
Have these plans been documented, with clear timetables? Is the timeline reasonable?
d.
6.1.4
6.1.5
Have the persons responsible for implementation of the plans been identified?
OBSERVATIONS & OBJECTIVE EVIDENCE Lias and Dolok Estate, 2015 Public consultation with stakeholder on May 23th – 25th, 2015
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR no sufficient evidence that all affected parties was involve in this assessment. SIA method is done by PRA (Participatory Rural Appraisal) through participatory discussions and interviews with villagers to dig deeper into the information and the potential that has been identified during the PRA. Attendance list and photograph of social impact assessment were available. Assessment has been done with the participation such as head of villages and public figure. Major Non-conformance 2016-15: No evidence that the assessment has been done with the participation of affected parties Consultation management plans and monitoring the social impact to the community has not been communicated by organisation to affected communities.
The plans shall be reviewed as a minimum once every two years and updated as necessary, in those cases where the review has concluded that changes should be made to current practices. There shall be evidence that the review includes the participation of affected parties. a. Is the plan reviewed every two years? Social Impact Asessment was conducted on 8th February 2015, organisation has YES Sosial Impact Assessment monitored the implementation and documented in CSR report. Plans for Report PT. PP Lonsum – Bah b. Has the plan been updated as avoidance or mitigation of negative impacts and promotion of the positive ones Lias and Dolok Estate, 2015 necessary (i.e. in cases where the reviewed once a year. review has concluded that changes CSR Report 2015/2016 should be made to current practices)? c.
Have the changes to the plan been implemented?
d.
Is there evidence that the review has been done with the participation of the affected parties?
e.
Has the process been recorded/documented?
Particular attention shall be paid to the impacts of smallholder schemes (where the plantation includes such a scheme). a. Are there schemed smallholders There was no smallholder scheme (plasma) in PT. PP Lonsum, Si Bulan, Bah Sosial Impact Assessment involved? Bulian, Bah Lias and Dolok Estate. Report PT. PP Lonsum – Bah Lias and Dolok Estate, 2015 b. Have they been considered and
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N/A
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CRITERION / INDICATOR CHECKLIST involved in the whole process of the SIA?
NO
c. 6.2
What are the main impacts affecting these smallholders?
OBSERVATIONS & OBJECTIVE EVIDENCE Public consultation with stakeholder on May 23th – 25th, 2015
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR
There are open and transparent methods for communication and consultation between growers and/or millers, local communities and other affected or interested parties. (M) Consultation and communication procedures shall be documented.
6.2.1
Guidance: Decisions that the growers or mills are planning to make should be made clear, so that local communities and other interested parties understand the purpose of the communication and/or consultation. Communication and consultation mechanisms should be designed in collaboration with local communities and other affected or interested parties. These should consider the use of appropriate existing local mechanisms and languages. Consideration should be given to the existence/formation of a multi-stakeholder forum. Communications should take into account differential access to information by women as compared to men, village leaders as compared to day labourers, new versus established community groups, and different ethnic groups. Consideration should be given to involving third parties, such as disinterested community groups, NGOs, or government (or a combination of these), to facilitate smallholder schemes and communities, and others as appropriate, in these communications. For National Interpretation: National Interpretation will consider issues such as appropriate levels of consultation and the types of organisation or individuals that should be included. a. Does the company maintain a list of Communication procedure (EMS- Company has maintained a list of local communities and other affected or local communities and other affected interested parties. List of local communities and other affected or interested P05), date on 10 August 2009 or interested parties? parties was well documented and updated once a year. Record of Minutes of socialization in documentation was well maintained by document controller. b. Is there SOP being developed by the October 23th 2014 to stakeholder company for communication and Procedure for communication and consultation with public was established by and attendance list consultation between the company organization. Stage of communication and consultation with public was Public consultation with and the local communities and other described in Communication procedure (EMS-P05), date on 10 August 2009. stakeholder in May 23th 2016 affected or interested parties? FPIC was not applicable in PT PT. PP London Sumatera due to the c. Is the FPIC approach incorporated in establishment of company since 1906. However FPIC approach was the SOP for communication and incorporated in the SOP for communication and consultation with the local consultation with the local communities and other affected or interested parties. communities and other affected or The existing Communication procedure (EMS-P05), date on 10 August 2009 interested parties? has been designed with consideration to the use of appropriate existing local d. Has the SOP been developed together mechanisms and languages. Consideration has been given to the with the local communities and other
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YES
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CRITERION / INDICATOR CHECKLIST affected or interested parties using appropriate existing local mechanisms and in languages understood by these parties?
NO
e.
f.
6.2.2
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR existence/formation of a multi-stakeholder forum. Dissemination of social communication procedure has been performed in October 23th 2014 to stakeholder. Minutes of socialization and attendance list was sighted.
Has the SOP been socialized with the local communities and other affected or interested parties taking into account the differential access to information by women as compared to men, village leaders as compared to day labourers, new versus established community groups, and different ethnic groups?
The existing communication and consultation mechanisms (Communication procedure (EMS-P05), date on 10 August 2009) take into account differential access to information by women as compared to men, village leaders as compared to day labourers, new versus established community groups, and different ethnic groups. Procedures were available in Indonesian and easily to understood and it was effective. It was verified during public consultation and interview with stakeholder in May 23th 2016.
Have interviews with affected parties been carried out to verify that the SOPs are effective?
A management official responsible for these issues shall be nominated. a.
Who in the company is appointed to be responsible for communication and consultation with the affected parties?
Communication procedure (EMSP05), date on 10 August 2009 Estate manager Job description
Estate manager and Humas have appointed as responsible person for these issues based on the procedure of Communication procedure (EMS-P05), date on 10 August 2009.
b.
Has the position been made official with clear and proper job description?
Described in Jobdesc Estate Manager one of the function was develop and maintain the good social relationship with community and third party include affected party.
c.
Have the affected parties been made aware and have access to the person in charge?
Afected parties have been aware and have access to the person in charge in accordance with Social Communication procedure.
YES
e. 6.2.3
A list of stakeholders, records of all communication, including confirmation of receipt and that efforts are made to ensure understanding by affected parties, and records of actions taken in response to input from stakeholders, shall be maintained. a.
Is the following maintained? List of stakeholders (local
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List Stakeholder update in 21st
A list of stakeholder was documented and updated once a year. The document was available covers internal stakeholder, government institution of District,
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YES
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NO
CRITERION / INDICATOR CHECKLIST communities and other affected or interested parties etc.); Records of all communication, including confirmation of receipt or endorsement; Evidence that efforts have been made to ensure understanding by affected parties; Record of actions taken in response to input from stakeholders.
OBSERVATIONS & OBJECTIVE EVIDENCE May 2016. Logbook communication and stakeholder aspiration 2015/2016 Public consultation with stakeholder in October 8th 2015
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR villages around Estate, labour union, FFB supplier, NGO (local, national and international) and general contractor/supplier. Last update was performed in January 2016. Record of list stakeholder can be demonstrated and well maintained. Records of all communication including confirmation of receipt or endorsement were well maintained, it documented in logbook of information request and community aspiration. Efforts were made to ensure understanding by affected parties was evident and documented in folder of information request and community aspiration as well as records of actions taken in response to input from stakeholders. Records of actions taken in response to input from stakeholders were evident, e.g. -
6.3
Letter No. 18.23/525/0941/2015 dated 10 February 2015 from Dinas Kehutanan dan Perkebunan Kab. Serdang Bedagai regarding request of “Laporan Perkembangan Usaha Perkebunan tahun 2014” follow up by organisation through letter No. 23/SI/OS/III/2015 dated 30 March 2015 and send the Laporan Perkembangan Usaha Perkebunan tahun 2014.
There is a mutually agreed and documented system for dealing with complaints and grievances, which is implemented and accepted by all affected parties. (M) The system, open to all affected parties, shall resolve disputes in an effective, timely and appropriate manner, ensuring anonymity of complainants and whistleblowers, where requested. Specific Guidance: For 6.3.1: The system should aim to reduce the risks of reprisal.
6.3.1
Guidance: See also to Criterion 1.2. Dispute resolution mechanisms should be established through open and consensual agreements with relevant affected parties. Complaints should be dealt with by mechanisms such as Joint Consultative Committees (JCC), with gender representation as necessary. Grievances may be internal (employees) or external. For scheme and independent smallholders, refer to ‘Guidance for Independent Smallholders under Group Certification’, June 2010, and ‘Guidance on Scheme Smallholders’, July 2009. Where a resolution is not found mutually, complaints can be brought to the attention of the RSPO Complaints System. Refer to helpful texts for guidance, such as the Human Rights Commission (HRC) endorsed ‘Guiding Principles on Business and Human Rights: Implementing the UN "Protect, Respect and Remedy" Framework’, 2011.
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NO a.
CRITERION / INDICATOR CHECKLIST Is there an system in place to deal with complaints and grievances for all affected parties?
b.
Who in the company is responsible to receive complaints and grievances?
c.
Is the existence of the system been made known and communicated to all parties?
d.
Is there evidence that the system is understood by all parties?
e.
Is training provided to the workers on the procedures/systems?
f.
Is the system effective to ensure that complaints or grievances are addressed or resolved in an effective, timely and appropriate manner?
g.
Does the mechanism or procedure provide a way for workers to report a grievance against a supervisor to someone other than the supervisor?
h.
How is a complaint or grievance investigated, addressed and resolved? Are complaints dealt with by mechanisms such as JCC?
i.
Is there a non-retaliation or nonreprisal policy that protects complainants or whistle-blowers?
j.
Is the privacy of parties protected?
k.
Where a resolution is not found mutually, is there a process for complaints to be brought to the RSPO
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OBSERVATIONS & OBJECTIVE EVIDENCE Communication procedure (EMSP05), date on 10 August 2009 Internal Memorandum of HR Director # 028/HRD/CIR/IV/2011, on 1 April 2011 and HR Policy on 25 May 2005 “Internal Complaint procedure”.
Job description of Estate Manager
Training and socialization record to all employee 2015/2016
Interview with employee in May 23th – 25th 2016 Public consultation with stakeholder in May 23th – 25th 2016
SUMMARY OF FINDINGS FOR EACH INDICATOR Organization has defined the system to deal with complaints and grievances for all affected parties which documented in Communication procedure (EMS-P05), date on 10 August 2009, Internal Memorandum of HR Director # 028/HRD/CIR/IV/2011, on 1 April 2011 and HR Policy on 25 May 2005 “Internal Complaint procedure”.
COMPLIANCE (YES/NO) YES
Person who responsible to receive complaints and grievances has assigned by organization that was Estate manager. It’s also described in Job description of Estate manager. The existence of the system has been communicated and made known to all parties. It has been disseminated to all parties through stakeholder meeting on July 2014 both in Dolok Estate, Bah Bulian Estate and Si Bulan Estate. Socialization and procedures training have been performed to all levels of employees through master morning and sign board in eah division. The system was effective to ensure that complaints or grievances are addressed or resolved in an effective, timely and appropriate manner. Evidence that the procedures have been implemented is the logbook of complaint. Records are routinely monitored monthly. Mechanism and procedure described a way for workers to report a grievance against a supervisor to someone other than the supervisor. The system was enable resolution of disputes in an effective and appropriate manner by way of classifying complaints into internal and external, appointed the person who responsible for handling complaints, including level of officials who make decisions for complaint resolution. Non-retaliation or non-reprisal policy that protects complainants or whistleblowers was described in sustainability policy PT PP Lonsum Tbk. Privacy of parties who submitted the compliant and aspirations were protected if necessary. Where a resolution is not found mutually by means of deliberations between two parties, the problem can be resolved through third-party mediation / authorities, be resolved through the applicable law or brought the RSPO Complaints System.
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CRITERION / INDICATOR CHECKLIST Complaints System?
NO
6.3.2
6.4
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR
(M) Documentation of both the process by which a dispute was resolved and the outcome shall be available. a.
Is the complaints or grievance resolution process documented?
b.
Are outcomes or decisions reported to the parties?
c.
Who has access to the documentation of the process and/or outcomes?
Logbook of Complaint 2015/2016 and record of responses and dealing Procedure of Social Complaint Handling - Internal Memorandum No. 028/HRD/CIR/IV/2011 dated 01 April 2011
Interview with employee in May 23th – 25th 2016
Public consultation with stakeholder in May 23th – 25th 2016
Complaints or grievance resolution process documented in the logbook of Complaint. Records are routinely monitored monthly however there were no complaints from stakeholder/parties since last audit untill this audit performed. From the result of interview with employee and external stakeholder, it was confrmed that they feel satisfied and have no complain to company, however they express some aspiration to company.
YES
Organisation has defined the procedure for complaints and grievance handling which documented in “Prosedur Penanganan Keluh Kesah” Internal Memorandum No. 028/HRD/CIR/IV/2011 dated 01 April 2011. Outcomes or decisions as response to follow up complain will be reported to affected parties as described in procedure. Affected parties have access to the documentation of the process and/or outcomes.
Any negotiations concerning compensation for loss of legal, customary or user rights are dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions. (M) A procedure for identifying legal, customary or user rights, and a procedure for identifying people entitled to compensation, shall be in place.
6.4.1
Guidance: This criterion should be considered in conjunction with Criteria 2.2 and 2.3, and the associated Guidance. a. Are procedures for identifying legal, Procedure for identifying legal, customary or user rights has been established “Pedoman Kebijakan Akuisisi customary or user rights in place? and available in “Pedoman Kebijakan Akuisisi Lahan dan Tanam Tumbuh Lahan dan Tanam Tumbuh February 2007”. The steps of the procedures to identification and calculation of February 2007” b. Are procedures for identifying people land compensation , consist of: entitled to compensation in place? Public consultation with 1. Identification of land owner stakeholder in May 23th – 25th c. Are those procedures jointly developed, agreed and accepted by 2. Measurement Minutes of stakeholder meeting local communities? in July 2014 and attendance list 3. Data input (mapping)
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YES
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CRITERION / INDICATOR CHECKLIST
NO
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR 4.
Negotiating compensation (according to the agreement and witnessed by a competent witness)
5.
Payment of compensation
6.
Data documentation.
Procedure for identifying people entitled to compensation has been established and available also in procedure of Identification and calculation of land compensation. The steps are as described above. Procedures was jointly developed, agreed and accepted by local communities It has been designed with consideration to the use of appropriate existing local mechanisms and languages. Consideration has been given to the existence/formation of a multi-stakeholder forum. The Procedure has disseminated to the stakeholder together with stakeholder meeting in July 2014. Minutes of socialization and attendance list was sighted.
6.4.2
A procedure for calculating and distributing fair compensation (monetary or otherwise) shall be established and implemented, monitored and evaluated in a participatory way, and corrective actions taken as a result of this evaluation. This procedure shall take into account: gender differences in the power to claim rights, ownership and access to land; differences of transmigrants and long-established communities; and differences in ethnic groups’ proof of legal versus communal ownership of land. Specific Guidance: For 6.4.2: Companies should make best efforts to ensure that equal opportunities have been provided to both female and male heads of households to hold land titles in smallholder schemes.
a.
Has a procedure for calculating and distributing fair compensation (monetary or otherwise) been established and implemented?
b.
Are the procedures jointly developed, agreed, accepted and clearly understood by affected parties?
c.
d.
Is the procedure monitored and evaluated in a participatory way? Have corrective actions been taken as a result of this evaluation? Does this procedure take into account
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“Pedoman Kebijakan Akuisisi Lahan dan Tanam Tumbuh February 2007”
Procedure for calculating and distributing fair compensation (monetary or otherwise) has been established and available in “Pedoman Kebijakan Akuisisi Lahan dan Tanam Tumbuh February 2007”.
Public consultation with stakeholder in May 23th – 25th
Procedures was jointly developed, agreed and accepted by local communities It has been designed with consideration to the use of appropriate existing local mechanisms and languages. Consideration has been given to the existence/formation of a multi-stakeholder forum.
Minutes of stakeholder meeting in July 2014 and attendance list
The procedure monitored and evaluated in a participatory way, procedures will be revised if there is a reasonable request from stakeholders. This procedure take into account of the gender differences in the power to claim rights, ownership and access to land, differences of transmigrants and longestablished communities, differences in ethnic groups’ proof of legal versus
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YES
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CRITERION / INDICATOR CHECKLIST the following: Gender differences in the power to claim rights; Ownership and access to land; Differences of transmigrants and long-established communities; Differences in ethnic groups’ proof of legal versus communal ownership of land.
NO
e.
6.4.3
6.5
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR communal ownership of land. There was no smallholder scheme in Dolok, Bah Lias, Bah Bulian and Si Bulan Estate.
Where there are schemed smallholders, is there effort to ensure equal opportunity has been provided to.
(M) The process and outcome of any negotiated agreements and compensation claims shall be documented, with evidence of the participation of affected parties, and made publicly available. a.
Is the process and outcome of negotiated agreements and compensation claims documented?
“Pedoman Kebijakan Akuisisi Lahan dan Tanam Tumbuh February 2007”
b.
Does this documentation include evidence of the participation of affected parties? Is there any approval/signed by effected parties?
Public consultation with stakeholder in May 23th – 25th
c.
Was consent obtained from all parties to make the documents publicly available?
The organisation did not acquire any new land after 2005. It was noted that there was no ongoing progress of new land acquisition during group discussion with village head and local NGO. All land acquisition process was done before 1962.
Pay and conditions for employees and for contract workers always meet at least legal or industry minimum standards and are sufficient to provide decent living wages. (M) Documentation of pay and conditions shall be available.
6.5.1
For National Interpretation: National Interpretation will define a Decent Living Wage. Where there is no National Interpretation, the legal minimum wage will be used.
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N/A
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NO a.
CRITERION / INDICATOR CHECKLIST What types of employment arrangements are there in the company? (E.g. contractual, outsourced, apprenticeships, direct hires, piecemeal basis, etc.)
b.
Is there documentation of pay and conditions for each employee?
c.
Is there a definition for living wage in the country? If not, how was the decision on wage for employees and contract workers made?
OBSERVATIONS & OBJECTIVE EVIDENCE Northern Sumatera Governor’s Decree Letter No. 188.44/11/KPTS/tahun 2015 Documentation of employees payroll 2015 Contract workers Job Agreement, for example No.BB/SPK/09/IX/2015
SUMMARY OF FINDINGS FOR EACH INDICATOR Documentation of employees’ pay rates was made by the organization. Workers were classified into daily worker (BHL – Buruh Harian Lepas), and permanent worker (MRP – Monthly Rate Person & DRP – Daily rate Person).
COMPLIANCE (YES/NO) YES
Evidence that the workers have received wage according regulation could be demonstrated. Minimum wages payment refers to latest Letter BKSPPS No. 46/BKS-PPS/2016 dated 22 Februari 2016 regarding Wannual wage incrememt member of BKS-PPS Sumatera Utara Province, minimum wage fixing 2016 as much as Rp. 2.178.625 + Rice accomodation (15 kg/pekerja + 9 Kg istri + 7 kg anak). Company release a memorandum No. 001/HRD/C-SAL/IV/2016 dated 11 April 2016 for employee minimum wage 2016. Minimum wage DRP employee fixing was Rp. 2.178.625 + Rice accomodation, Overtime = 1/73 x (Minimum wage + Rice accomodation), Minimum wage MRP employee defined based on lowest grade G with minimum work time 1 year Rp. 2.412.000, highest grade A with work time 5 year Rp. 4.078.000. Overtime was defined based on UU No. 13 tahun 2003. Rice accommodation value defined based on price standard which issued by BKS-PPS (Badan Kerjasama Perusahaan Perkebunan Sumatera). Wage of dailly worker (PHL) defined in Memorandum No. 001/HRD/C-PW/III/2016 dated 31 March 2016. Wage defined as amount Rp. 2.178.625 or Rp. 87.145/day. Based on verification of employee payroll in Si Bulan Estate, Bah Bulian Estate, Bah Lias Estate, Dolok Estate and Dolok Mill from January to December 2015 and January to April 2016, there was no employee paid below minimum wage and it has compliance with the regulation. Based on interview with worker it was noted that there was no worker wage deduction. Payments for workers were determined according to daily attendance register and over time shift. Daily attendance for workers was recorded and controlled manually by the each Assistant. Pay and conditions for employees and for contract workers always meet at least legal or industry minimum standards and are sufficient to provide decent living wages. Payment of contracted employees (BHL) was based on the volume of work multiplied by the unit price.
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NO 6.5.2
CRITERION / INDICATOR OBSERVATIONS & OBJECTIVE COMPLIANCE SUMMARY OF FINDINGS FOR EACH INDICATOR CHECKLIST EVIDENCE (YES/NO) (M) Labour laws, union agreements or direct contracts of employment detailing payments and conditions of employment (e.g. working hours, deductions, overtime, sickness, holiday entitlement, maternity leave, reasons for dismissal, period of notice, etc.) shall be available in the languages understood by the workers or explained carefully to them by a management official. a. Is the pay and conditions of Pay and conditions of employment clearly detailed in the employment or service YES PKB years 2015 – 2017 employment clearly detailed in the endorsed by the Director General contracts. Employees contract are available for permanent employees, contract employment or service contracts? labor agreement contains agreements include: working time, dependents, payroll of Industrial Relations Labor and (E.g. working hours, deductions, and consent of both parties. Working hours, deductions, overtime, sickness, Social Security with the decree overtime, sickness, holiday holiday entitlement, maternity leave, reasons for dismissal, period of notice, etc RI dated June 18th, 2015 SK entitlement, maternity leave, reasons described in PKB years 2015 - 2017 which have been agreed between the No.KEP.88/PHIJSKfor dismissal, period of notice, etc.) employees (represented by SPSI) and company and endorsed by BKSP-PPS PKKAD/PKB/VI/2015 tanggal 21 April 2015. b. Is the contract prepared in languages Contract workers understood by the workers, explained Verification has been done on contract Letter of Appointment on behalf Suhartini Contract No.BB/SPK/09/IX/2015 carefully to workers by management Playgroup Teacher No. 20/SI/DIV/IV/2016 and Irwansyah Harvester with TM Sitohang officials, and signed by both the No.19/SI/DIV/IV/2016. authorised signatory of the company Contract work by non-permanent employees performed in accordance with the and employee? employment contract agreement/SPK for example: SPK tanggal 25 April 2016 c. Does the pay and conditions a.n Rubiati umur 55 tahun. SPK for estate and mill was available in PKHL, for provided in labour laws, union example on behalf Hadi Purnomo Bah Bulian Estate Worker, PKHL No. agreements or direct contracts of 04/BBE/Cont-PKHL/XII/2013, Abdul Majid Nasution No. 01/BBE/Contemployment comply with: PKHL/XII/2013. The contract includes the amount of work, duration and value of The decent living wage as the wage contract. The contract was signed and agreed by both parties. provided in the National Contract was prepared in languages which understood by the workers, explained Interpretation for the country; or carefully to workers by management officials, and signed by both the authorised The local legal requirements in signatory of the company and employee. meeting the minimum wage; or The industry minimum standard Pay and conditions provided in labour laws, union agreements and direct for a similar position or work contracts of employment has been comply with: responsibilities • The decent living wage as provided in the National Interpretation for the d. Is the pay received by the employee country; or consistent with the terms of the • The local legal requirements in meeting the minimum wage; or contract and the law (relates to P2)? • The industry minimum standard for a similar position or work e. Have there been any cases recorded responsibilities of breach by the company, or complaint made by employees
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NO
CRITERION / INDICATOR CHECKLIST against the company on unjust pay and conditions?
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR Payment of salaries performed once a month in the beginning of each month (on dated 5th) for permanent employees. Total salaries paid are in accordance with the district minimum wage (based on BKS-PPS fixing wage upper than UMK). Pay received by the employee was consistent with the terms of the contract and the law. Since January – December 2015 and January – April 2016, there was no complaint made by employees against the company on unjust pay and conditions. Information was based on Complaint logbook 2015/2016.
6.5.3
Growers and millers shall provide adequate housing, water supplies, medical, educational and welfare amenities to national standards or above, where no such public facilities are available or accessible. a. Have growers and millers provided adequate housing and other basic necessities such as that listed below to national standards or above, where no such public facilities are available or accessible? adequate housing; adequate electricity; clean water supplies (availability of clear water all year round); medical services (distance to health care facility i.e. clinic, hospital); children education (distance to school and schooling attendance (%) of children under 12) welfare amenities.
Sucofindo Laboratory certificate analysis dated 15th September 2015 List of facility for employee Interview with employee in May 23th – 25th, 2016 Field observation in emplasement Si Bulan Estate, Bah Bulian Estate, Bah Lias Estate and Dolok Mill
The organization provided adequate medical, educational and welfare amenities to national standards. Public facilities were provided by the organisation with basic facilities and covered child care, kindergarten, building for prayers (Mesjid dan Gereja), sports facility (e.g. volley ball, badminton, futsal, and tennis), housing for workers and medical facilities (clinics). Housing for workers and medical facilities (clinics) were was provided by the organisation with basic facilities. Daftar sarana dan prasarana yang tersedia untuk karyawan terdokumentasi dalam peta sarana dan prasarana karyawan. The organization has provided adequate water supplies to national standards. Water analysis was conducted every semester based on Lampiran 2 Permenkes No. 416 tahun 1990. It has been done water analysis in the employee housing facility by Sucofindo Laboratory. For example on dated 15th September 2015 in Sibulan Estate Pondok II (certificate analysis No.07542/CLACAI) and Pondok Sibulan (certificate analysis No.07543/CLACAI), analysis in Dolok Estate in 1 st October 2015 certificate analysis No.09224/CLACAI in Sei Bejangkar, certificate analysis No.09223/CLACAI Sei Bejangkar Div 3, No.09223/CLACAI in Div 4. Company also procide medical services for all employees freely in Plantation Clinic with the facility such as Ambulance, medicine, medical equipment, etc. All employee also covered by health insurance (BPJS) which was paid by company eah month. Education facility also provided by company such as “Rumah Pintar” which
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SUMMARY OF FINDINGS FOR EACH INDICATOR provides some educational tools and equipment, educational book/library and etc. Company also provided school bus and school transportation. Elementary scool, Junior high School and Senior high school were available around company and company support and provide the transportation (school bus) for children school in SiBulan estate, Bah Lias Estate, Bah Bulian Estate, Dolok Estate and Mill.
6.5.4
Growers and millers shall make demonstrable efforts to monitor and improve workers’ access to adequate, sufficient and affordable food. a.
Have growers and millers made demonstrable efforts to monitor and improve workers’ access to adequate, sufficient and affordable food?
List of facility for employee Interview with employee in May 23th – 25th, 2016 Field observation in emplasement Si Bulan Estate, Bah Bulian Estate, Bah Lias Estate and Dolok Mill
The organization made demonstrable efforts to monitor and improve workers’ access to adequate, sufficient and affordable food. There are cooperatives that provide basic needs for employees “Koperasi Karyawan Perkasa PT PP Lonsum”.
YES
Based on interviews with managers and employee, it can be demonstrated that more than 90% of employees bought their basic necessities from the cooperative. In addition, the location of the plantation was on near of the national road, so there is no problem for the access to the market. Based on the interview with worker representative and labour union, it was conclude that there was no problem regarding access to adequate, sufficient and affordable food. Workers also have rice “catu beras” 15 kg for the employee, 9 kg for the spouse and 7.5 kg for each child, up to 3 children. Employees and their dependents (children and wife) are also provided health insurance (BPJS Kesehatan) by the company.
6.6
The employer respects the rights of all personnel to form and join trade unions of their choice and to bargain collectively. Where the right to freedom of association and collective bargaining are restricted under law, the employer facilitates parallel means of independent and free association and bargaining for all such personnel. (M) A published statement in local languages recognising freedom of association shall be available.
6.6.1
Guidance: The right of employees, including migrant and transmigrant workers and contract workers, to form associations and bargain collectively with their employer should be respected, in accordance with Conventions 87 and 98 of the International Labour Organisation (ILO). Labour laws and union agreements, or in their absence direct contracts of employment detailing payments and other conditions, should be available in the languages understood by the workers or explained carefully to them by a management official.
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For National Interpretation: National Interpretation will define migrant and transmigrant workers. ILO definitions and other international protocols, instruments and explanations should be used throughout. a. Has the company published a statement in local languages recognising the rights of employees to freedom of association? b. Are the employees, including migrant and transmigrant workers and contract workers, allowed to form associations and bargain collectively with their employer? c. Was the outcome, if any, from the collective bargaining process between the company and the association respected, implemented and adopted in full or partially by the company? d. Are there Labour laws and union agreements, or in their absence direct contracts of employment detailing payments and other conditions, made available in the languages understood by the workers or explained carefully to them by a management official?
Company Sustainability Policy dated 1 September 2014 Internal memorandum No. 006/HRD/CIR/I/2004 dated 7 January 2004 PUK-F Serikat Pekerja Perkebunan - SPSI PT PP Lonsum Tbk, North Sumatera (covered all estate in PT PP Lonsum Tbk in North Sumatera) Union workers officials ratified by the PUK F-SPSI SP.PP through Decree No. KEP.03/ORG/PC FSP.PP-SB/IX/2008 dated September 1st, 2006.
Freedom of association has been mentioned in Company Sustainability Policy dated 1 September 2014. Organizations understand that workers have the right to argued, associate and organize in a labour union. Company also issued internal memorandum No. 006/HRD/CIR/I/2004 dated 7 January 2004 regarding freedom to associate and organize in a labour union Organization committed to provides opportunities for workers to organize in unions and express an opinion. Commitment covered in the policy are: -
The organization recognizes workers' rights to express their opinions and organize freely and responsibly run in labour union organizations.
-
Organizational policies related to ensure workers' rights are discussed and decided by taking into consideration the union.
-
Ensured that the disclosure made by aspiration unions did not cause the collapse of a termination for union leaders and members.
-
Promoting the principle of dialogue to reach consensus in addressing the aspirations from labour union to the company.
Based on interview with labour union leader, the company has accommodated employee rights to argued, associate and organize in a labour union. Employees, including migrant and transmigrant workers and contract workers were allowed to form associations and bargain collectively with their employer. There were union workers represent estate and mill employee incorporated in the PUK-F Serikat Pekerja Perkebunan - SPSI PT PP Lonsum Tbk, North Sumatera (covered all estate in PT PP Lonsum Tbk in North Sumatera). The composition of union workers officials have been ratified by the PUK F-SPSI SP.PP North Sumatera through Decree No. KEP.03/ORG/PC FSP.PPSB/IX/2008 dated September 1st, 2006. Labour laws, union agreements which described in PKB (perjanjian kerja bersama) and direct contracts of employment detailing payments and other
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SUMMARY OF FINDINGS FOR EACH INDICATOR conditions was made available in the languages which understood by the workers and explained carefully to them by management official.
6.6.2
Minutes of meetings with main trade unions or workers representatives shall be documented. a. Are there documented minutes of meetings between the company and main trade unions or workers representatives?
Minutes of meetings Unions worker on June 25th, 2015 and June 19th, 2015
b. Are the minutes made readily available to employees upon request? 6.7
Minutes of meetings with main labour unions or workers representatives been documented, e.g. meeting on June 25th, 2015 meeting to discuss Eid Mubarak celebration, meeting on June 19th, 2015 to dissemination ATM cards provision to workers.
YES
Minutes of meeting were available, list of attendance was sighted. The minutes were made readily available to employees upon request.
Children are not employed or exploited. (M) There shall be documentary evidence that minimum age requirements are met.
6.7.1
Guidance: Growers and millers should clearly define the minimum working age, together with working hours. Only workers above the minimum school leaving age in the country or who are at least 15 years old may be employed. The minimum age of workers will not be less than stated under national regulations. Any hazardous work should not be done by those under 18, as per International Labour Organisation (ILO) Convention 138. Please refer to ‘Guidance for Independent Smallholders under Group Certification’, June 2010, and ‘Guidance on Scheme Smallholders’, July 2009for additional guidance on family farms. a. Is the minimum working age for Company sustainability Policy mentioned that the organization comitted not to YES Company Sustainability Policy workers together with working hours hire underage workers required by labour law that is at least 18 years. dated 1 September 2014 clearly defined in the company’s Companies ensure regulatory provisions governing the child labor were followed. List of employees which updated recruitment policy? List of employees which updated on April 2016 showed that no employee under on April 2016 b. Are workers employed above the the age of 18 years. During field observations demonstrated that there was no Interview with employee on May minimum school leaving age of the underage worker and no children were invited to work by their parents. This 23th – 25th 2016 in Si Bulan country or who are at least 15 years of complied with UU 13/2003 and with International Labour Organisation (ILO) Estate, Bah Bulian Estate, Bah age? Convention 138. Lias Estate, Dolok Estate and c. Is there evidence that the nature of Ground verification through interview with the employee on 23th – 25th 2016 Dolok Mill work for workers under 18 is in could be demonstrated and evident that there were no workers below the accordance with International Labour
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CRITERION / INDICATOR CHECKLIST Organisation (ILO) Convention 138?
OBSERVATIONS & OBJECTIVE EVIDENCE Field observation
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR minimum working age.
d. Does ground verification show evidence of employment of workers below the minimum working age? 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. (M) A publicly available equal opportunities policy including identification of relevant/affected groups in the local environment shall be documented.
6.8.1
Guidance: Examples of compliance can be appropriate documentation (e.g. job advertisements, job descriptions, appraisals, etc.), and/or information obtained via interviews with relevant stakeholders such as affected groups which may include women, local communities, foreign workers, and migrant workers, etc. Notwithstanding national legislation and regulation, medical conditions should not be used in a discriminatory way. The grievance procedures detailed in Criterion 6.3 apply. Positive discrimination to provide employment and benefits to specific communities is acceptable as part of negotiated agreements. a. Is there a company policy on nonEqual opportunities has been documented in Company sustainability policy YES Company Sustainability Policy discrimination and equal opportunities? dated 1 September 2014, the document was publicly available for employee and dated 1 September 2014 Does it at least cover the items stakeholder. Its cover race, caste, national origin, religion, disability, gender, List of employees which updated sexual orientation, union membership, political affiliation, or age. mentioned in the criteria (6.8)? on April 2016 b. Is the policy made publicly available for PT London Sumatera believe that every worker is entitled to equal treatment and Interview with employee on May the relevant stakeholders? not discriminate based on ethnicity, religion, race, sexual orientation and gender. 23th – 25th 2016 in Si Bulan PT London Sumatera committed to implementing anti-discrimination policy to all c. Is there evidence that the policy has Estate, Bah Bulian Estate, Bah employees. been implemented? Lias Estate, Dolok Estate and Policy has been communicated to all employees on January 2015 to office Dolok Mill wrokers, mill workers in July and August 2015, and estate workers in September Field observation and October 2015. Policy made was publicly available for the relevant stakeholders. Based on interview with stakeholders and employee in May 23th – 25th 2016 could be demonstrated that the policy has implemented well by organization.
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NO 6.8.2
OBSERVATIONS & OBJECTIVE EVIDENCE
(M) Evidence shall be provided that employees and groups including local communities, women, and migrant workers have not been discriminated against. a. Is there evidence that employees and groups including local communities, women, and migrant workers have not been discriminated against? b. Are the employees and groups including local communities, women, and migrant workers happy with the way the company is treating them? c. Are there complaints against the company on issues relating to discrimination?
Company sustainability Policy dated 1 September 2014 Logbook Complaint 2015/2016 Public consultation on May 23th – 25th 2016 Interview with employee on May 23th – 25th 2016 in Si Bulan Estate, Bah Bulian Estate, Bah Lias Estate, Dolok Estate and Dolok Mill
d. What is the nature of complaints employees and groups including local communities, women, and migrant workers have lodged against the company, if any? 6.8.3
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR
Based on public consultation on May 23, 24 and 25 th, 2016 with stakeholders and employee could be demonstrated that there was no discrimination against employees and groups including local communities, women, and migrant workers. However there was no migrant worker work to company.
YES
The employees and groups including local communities, women, and migrant workers were happy with the way the company treating them. There were no complaints against the company on issues relating to discrimination based on public consultation with stakeholders and employee. Based on Logbook Complaint 2015/2016 since January – December 2015 and ytd April 2016 there was no complaint employee and groups including local communities, women, and migrant workers have lodged against the company.
It shall be demonstrated that recruitment selection, hiring and promotion are based on skills, capabilities, qualities, and medical fitness necessary for the jobs available. a.
Does the company keep and maintain a record of their employees’ work credentials and medical history?
b.
Does the company explicitly state the indiscriminatory policy during the recruitment selection, hiring and promotion process?
Interview with employee on May 23th – 25th 2016 in Si Bulan Estate, Bah Bulian Estate, Bah Lias Estate, Dolok Estate and Dolok Mill
c.
Is the company’s indiscriminatory policy reviewed regularly?
Based on public consultation on May 23th – 25th 2016 and interview with employee it could be demonstrated that recruitment selection, hiring and promotion are based on skills, capabilities, qualities, and medical fitness necessary for the jobs available. Company was performed selection and recruitment employee based on “SOP Recruitment (SOP HRD 02)”. Company explicitly state the indiscriminatory policy during the recruitment selection, hiring and promotion process. Recruitment process also described in PKB (collective labor agreement) article III.
SOP Recruitment (SOP HRD 02)
Company’s indiscriminatory policy reviewed regularly, once a year.
PKB (collective labor agreement)
Company’s employees was recruited and promoted based on skills, capabilities,
d.
Are the company’s employees
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Public consultation on May 23th – 25th 2016
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6.9
6.9.1
CRITERION / INDICATOR CHECKLIST recruited and promoted based on skills, capabilities, qualities, and medical fitness necessary for the job? How is this evidenced?
OBSERVATIONS & OBJECTIVE EVIDENCE article III Employee promotion record Si Bulan Estate, Bah Bulian Estate and Dolok Estate
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR qualities, and medical fitness necessary for the job. Recording of recruitment begun from letter of application, personal data of employees, contract and medical history are stored in the file archive employees. From the record could be demonstrated that company has implemented well the procedure and the policy. Some evidence such as employee promotion in Si Bulan Estate, Bah Bulian Estate and Dolok Estate.
There is no harassment or abuse in the work place, and reproductive rights are protected. (M) A policy to prevent sexual and all other forms of harassment and violence shall be implemented and communicated to all levels of the workforce. Specific Guidance: For 6.9.1 and 6.9.2: These policies should include education for women and awareness of the workforce. There should be programmes provided for particular issues faced by women, such as violence and sexual harassment in the workplace. A gender committee specifically to address areas of concern to women will be used to comply with this Criterion. This committee, which should include representatives from all areas of work, will consider matters such as: training on women’s rights; counselling for women affected by violence; child care facilities to be provided by the growers and millers; women to be allowed to breastfeed up to nine months before resuming chemical spraying or usage tasks; and women to be given specific break times to enable effective breastfeeding. For 6.9.2: see Indicator 4.6.12. Guidance: There should be a clear policy developed in consultation with employees, contract workers and other relevant stakeholders, and the policy should be publicly available. Progress in implementing the policy should be regularly monitored, and the results of monitoring activities should be recorded. Notwithstanding national legislation and regulation, reproductive rights are respected. a. Does the company have the policy to Company sustainability Policy SK prohibit any form of sexual and all Direksi No.001/DIR/IX/2014 other forms of harassment and dated 1 September 2014 violence? Interview with employee on May b. Has this policy been documented, 23th – 25th 2016 in Si Bulan implemented and communicated Estate, Bah Bulian Estate, Bah clearly to all levels of the workforce? Lias Estate, Dolok Estate and Dolok Mill c. Is there a clear protocol for the company to deal/handle such Internal Memorandum HRD No. issues/complaints received from the 028/HRD/CIR/IV/2011 regarding workforce? gender and sexual harassment
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Company have the policy to prohibit any form of sexual and all other forms of harassment and violence which described in Company sustainability Policy Lampiran SK Direksi No. 001/DIR/IX/2014, dated 12 September 2014. Protection against sexual harassment and violence. PT PP Lonsum guarantee and protect the reproductive rights of employees, do not hire children under the age of 18 years and protecting employees on sexual harassment by the company. Company sustainability that described prevention of sexual and all other forms of harassment and violence has been implemented and communicated to all levels of the workforce through master morning and signboard which placed in each division.
YES (Major NCR 2016-17 closed)
Mitigation and complaint regarding gender and sexual harassment regulated and defined in Internal Memorandum HRD No. 028/HRD/CIR/IV/2011. Complaints of
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NO d.
e.
f.
6.9.2
CRITERION / INDICATOR CHECKLIST Is there a list of awareness programs or training provided to the workforce in relation to these issues?
OBSERVATIONS & OBJECTIVE EVIDENCE regulation
Has the company formed a Gender Committee to address areas of concern to women? Is there a list of the members sitting in the committee? What are the Terms of Reference of the committee? Does it include the handling of issues such as: training on women’s rights; counselling for women affected by violence; child care facilities to be provided by the growers and millers; women to be allowed to breastfeed up to nine months before resuming chemical spraying or usage tasks; and women to be given specific break times to enable effective breastfeeding.
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR gender issues can be submitted a written notification to the gender commission or the company management, gender committee will studying the complaints and mediate between the complainant with the company; for sexual harassment mediation performed between the perpetrators with the victim. Policy and regulation regarding sexual harassment and violence regularly reviewed once a year by central management office. Major Non-conformance 2016-17:
Company has not been formed gender committee to address areas of concern to women
Is the policy regularly reviewed?
(M) A policy to protect the reproductive rights of all, especially of women, shall be implemented and communicated to all levels of the workforce. a.
Is there a policy to protect the reproductive rights of all, especially of women?
b.
Has this policy been documented, implemented and communicated clearly to all levels of the workforce?
c.
How is this policy communicated to all
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Company sustainability Policy attachment SK Direksi No. 001/DIR/IX/2014, dated 1 September 2014 Interview with employee on May 23th – 25th 2016 in Si Bulan Estate, Bah Bulian Estate, Bah
Company has establish the policy to protect the reproductive rights of all, especially of women which described in Company sustainability Policy attachment SK Direksi No. 001/DIR/IX/2014, dated 12 September 2014. PT PP Lonsum guarantee and protect the reproductive rights of employees, do not hire children under the age of 18 years and protecting employees on sexual harassment by the company. Company sustainability Policy has described the protection of the reproductive
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CRITERION / INDICATOR CHECKLIST levels of the workforce?
NO
OBSERVATIONS & OBJECTIVE EVIDENCE Lias Estate, Dolok Estate and Dolok Mill Minutes of dissemination, signboard and photo documentation Field observation
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR rights of all, especially of women, been implemented and communicated to all levels of the workforce. Policy has been communicated to all employees through master morning. Protection the reproductive rights of women workers als described in PKB (collective labor agreement) article VIII and XIV. Article XIV regarding Social Security and Social Assistance explain that company provide daycare house for worker children/infants up to age 2 years with a maximum of 10 baby each caregiver/nanny. The company also provides sufficient time for women workers to breastfeed her child. Article VIII regarding menstruation, women workers in the menstrual period feel pain are not obliged to work on the first and second at the time of menstruation. Policy has been communicated to all levels of the workforce directly to employees by their respective assistants and through submission and awareness against female employees.
6.9.3
A specific grievance mechanism which respects anonymity and protects complainants where requested shall be established, implemented, and communicated to all levels of the workforce. a.
Does the company have a mechanism to handle employment grievances, that respects anonymity and protects complainants where requested?
b.
Does the mechanism provide a way for workers to report a grievance against a supervisor to someone other than that supervisor?
c.
Is the mechanism documented, implemented and communicated clearly to all levels of the workforce?
d.
Has the company identified personnel who will be responsible to receive and manage complaints received from the workforce?
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Prosedur Penanganan Keluh Kesah Memorandum No. 028/HRD/CIR/IV/2011 Logbook of complaint 2015/2016 Public consultation on May 23th – 25th 2016 and interview with employee Field observation
Company have a mechanism to handle employment grievances, that respects anonymity and protects complainants where requested which described in “Prosedur Penanganan Keluh Kesah Memorandum No. 028/HRD/CIR/IV/2011”. Organisation also establishes a mechanism for reporting by whistleblowers against deviations code of conduct (Code of Conduct) and the rules and other corporate policies delivered via email the internal audit division. The system was enable resolution of disputes in an effective and appropriate manner by way of classifying complaints into internal and external, appointed the person who responsible for handling complaints, including level of officials who make decisions for complaint resolution. The mechanism also provides a way for workers to report a grievance against a supervisor to someone other than that supervisor. Mechanism has been documented in procedure as explain above. It has been implemented and communicated clearly to all levels of the workforce. Evidence that the procedures have been implemented is the logbook of complaint. Records are routinely monitored monthly, no complaints during the period of
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f.
CRITERION / INDICATOR CHECKLIST Has the company received any reports or complaints of harassment or abuse? How was it addressed or resolved?
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR January 2015 to April 2016. Company has been identified personnel who will be responsible to receive and manage complaints received from the workforce. Each respective assistants and supervisors were responsible to receive and manage complaints received from the workforce.
Is the policy reviewed regularly?
Based on Logbook of complaint 2015/2016 there was no complaints during the period of January 2015 to April 2016. Policy regularly reviewed once a year by central management office. 6.10
Growers and millers deal fairly and transparently with smallholders and other local businesses. Current and past prices paid for Fresh Fruit Bunches (FFB) shall be publicly available.
6.10.1
Guidance: Transactions with smallholders should consider issues such as the role of middle men, transport and storage of FFB, quality and grading. The need to recycle the nutrients in FFB (see Criterion 4.2) should also be considered; where it is not practicable to recycle wastes to smallholders, compensation for the value of the nutrients exported can be made through the FFB price. Smallholders should have access to the grievance procedure under Criterion 6.3 if they consider that they are not receiving a fair price for FFB, whether or not middle men are involved. The need for a fair and transparent pricing mechanism is particularly important for outgrowers who are contractually obliged to sell all FFB to a particular mill. If mills require smallholders to change practices to meet the RSPO Principles and Criteria, consideration should be given to the costs of such changes, and the possibility of advance payments for FFB can be considered. a. How is the price of FFB determined? NA The FFB was procured from the organization’s own estate. Therefore there was NA no price of FFB received by Mill site. b. Is current and past prices paid for Fresh Fruit Bunches (FFB) publicly available? How? c.
Was there any complaints on FFB pricing?
d.
How was the complaint handled?
e.
What was the solution?
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NO 6.10.2
6.10.3
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR
(M) Evidence shall be available that growers/millers have explained FFB pricing, and pricing mechanisms for FFB and inputs/services shall be documented (where these are under the control of the mill or plantation). a.
What is the mode of recording/documenting transactions between millers with middlemen and/or smallholders?
b.
Is there evidence that growers/millers have explained FFB pricing and pricing mechanisms for FFB?
c.
Are there any inputs/services rendered by the millers to smallholders/middle men? Are these inputs/services having any influence to the pricing and pricing mechanisms for FFB?
d.
Have inputs/services been documented (where these are under the control of the mill or plantation)?
e.
Where it is not practicable to smallholders to recycle waste (i.e. EFB), is there compensation for the value of the nutrients of EFB given to the smallholders? Is this translated into the pricing factors of FFB?
NA
The FFB was procured from the organization’s own estate. Therefore there was no transaction and pricing mechanism of FFB between third party (i.e.: middlemen, smallholders) and the management of Mill.
Evidence shall be available that all parties understand the contractual agreements they enter into, and that contracts are fair, legal and transparent.
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NA
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CRITERION / INDICATOR CHECKLIST a. Is there a contractual agreement between the miller and smallholders/ middle men?
OBSERVATIONS & OBJECTIVE EVIDENCE Contract agreement PT PP London Sumatera with related contractors.
b. Do all parties understand the contractual agreements they have entered into?
SUMMARY OF FINDINGS FOR EACH INDICATOR The agreement/contract documents between contractor and organisation is sighted such as:
COMPLIANCE (YES/NO) YES
Si Bulan Estate CV. Surya Citra Mandiri, as land clearing contractor for replanting activities with contract 020/OAD/Cont-LC/SIE/IX/2015. Bah Bulian Estate
c. Are all contractual agreements fair, legal and transparent?
CV. Anugerah Citra Perkasa, as building contractor with contract: 38/EP/CONT/2014.
d. Who keeps the contractual agreements?
Dolok mill and Estate PT Kesuma Andalan Sinergi, as road maintenance contractor with contract 06/EP/CONT/2014. All contracts are acknowledged by all parties as part that contain of contract are well understood. The contract contains all relevant information such as payment method, work requirements, force majeure, contract period, cancellation of contract, etc. The contracts were kept by both parties. All the payments have been made were executed in line with the terms of payment stated in the related contract documents.
6.10.4
Agreed payments shall be made in a timely manner. a. How are all payments made to the smallholders/middle men?
Slip payment for several contractors
A review to several payment records demonstrated that the payments have been made according to the contract agreement.
b. What is the mode of recording/documenting transactions between millers with middlemen and/or smallholders?
All the payments have been made were executed in line with the terms of payment stated in the related contract documents.
c. Have agreed payments been made in a timely manner?
Si Bulan Estate
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Several samples were shown such as: Slip payment could be shown on 15 December 2015 with term of payment 30
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OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR days after receiving invoice. Bah Bulian Estate Slip payment could be shown on September 2014 with term of payment 30 days after receiving invoice. Dolok mill and Estate Slip payment could be shown on 10 October 2014 with term of payment 30 days after receiving invoice.
6.11
Growers and millers contribute to local sustainable development where appropriate. Contributions to local development that are based on the results of consultation with local communities shall be demonstrated.
6.11.1
Guidance: Contributions to local development should be based on the results of consultation with local communities. See also Criterion 6.2. Such consultation should be based on the principles of transparency, openness and participation, and should encourage communities to identify their own priorities and needs, including the different needs of men and women. Where candidates for employment are of equal merit, preference should always be given to members of local communities. Positive discrimination should not be recognised as conflicting with Criterion 6.8. Efforts should be made to identify independent smallholders in the supply base. Where sourcing of fruit is from identified independent smallholders, efforts should be made to contribute to the improvement of their farming practices. For National Interpretation: National Interpretation will consider specific parameters or thresholds such as use of local and national goods and services where possible, whether a certain percentage of the plantation’s profit/turnover should be used for social development projects, and minimum quotas for local employment. a. Have the local development needs and SIA Report PT PP Lonsum Tbk Local development needs and priorities has been identified by organization YES priorities been identified in consultation through consultation with local communities and social impact asessment. – Bah bulian and Dolok Estate with local communities? (refer also to C Consultation management plans and monitoring the social impact to the CSR program 2016 6.2) community has been communicated and disseminated to affected communities through stakeholder meeting on July 2014. Company sustainability Policy b. What are the contributions made to attachment SK Direksi No. local development? Are they in Contribution to local development described in the Corporate Social 001/DIR/IX/2014, dated 1 accordance with the results of Responsibility (CSR) programme. CSR program of 2016 was available. CSR September 2014 consultation? program consists of : Public consultation on May 23th – - Education program : Contribution and assistance to school teacher c. Are there efforts to improve or
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CRITERION / INDICATOR CHECKLIST maximise employment opportunities at the company for local communities?
OBSERVATIONS & OBJECTIVE EVIDENCE 25th 2016 and interview with employee Field observation
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR -
Cultural program : Contribution funding for the development of local wisdom Infrastructure program : Enhancement of village roads around the plantation, road drainage, and heavy equipment Public facility program : Contribution of building material for moaque, school, etc., providing clean water for community activities
The entire CSR program created was in accordance with the results of consultation Several records of CSR implementation were evident and could be demonstrated. Evidence of preference always been given to members of local communities where candidates for employment are of equal merit was described in Company sustainability Policy attachment SK Direksi No. 001/DIR/IX/2014, dated 1 September 2014. Based on interview with village head and public figure in Si Bulan Estate, Bah Bulian Estate, Bah Lias Estate, Dolok Estate and Dolok Mill generally there were satisfied with the plantation contribution to local communities. 6.11.2
Where there are scheme smallholders, there shall be evidence that efforts and/or resources have been allocated to improve smallholder productivity. a. Is there a complete registry of independent smallholders in the supply base?
Public consultation on May 23th – 25th 2016 and interview with employee
There is no scheme smallholder in PT. PP Lonsum Tbk, Si Bulan Estate, Bah Bulian Estate, Bah Lias Estate, and Dolok Estate. Efforts have been made to identify independent smallholders in the supply base.
b. Have efforts been made to improve the farming practices of independent smallholders? c. Where there are schemed smallholders, have efforts and/or resources been allocated to improve smallholder productivity? No forms of forced or trafficked labour are used. 6.121 *1 New Criteria - No forms of forced or trafficked labour are used.
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CRITERION / INDICATOR OBSERVATIONS & OBJECTIVE CHECKLIST EVIDENCE (M) There shall be evidence that no forms of forced or trafficked labour are used.
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR
Specific Guidance: For 6.12.1: Workers should enter into employment voluntarily and freely, without the threat of a penalty, and should have the freedom to terminate employment without penalty given reasonable notice or as per agreement.
6.12.1
Guidance Migrant workers should be legalised, and a separate employment agreement should be drawn up to meet immigration requirements for foreign workers and international standards. Any deductions made should not jeopardise a decent living wage. Passports should only be voluntarily surrendered. There should be evidence of due diligence in applying this to all sub-contract workers and suppliers. National guidance should be used on contract substitution. For National Interpretation: National Interpretation will define the following: temporary workers; migrant workers; special labour policy; contract substitution; and decent living wage. International Labour Organisation (ILO) definitions (ILO Convention 29 and 105) and other international protocols, instruments and explanations should be used throughout. See Criterion 6.5 for further guidance. a. What is the company’s policy on forced Company sustainability Policy Company’s policy on forced or trafficked labour was described in Company YES or trafficked labour? sustainability Policy attachment SK Direksi No. 001/DIR/IX/2014, dated 1 attachment SK Direksi No. September 2014. 001/DIR/IX/2014, dated 1 b. How does the company define forced September 2014 or trafficked labour? Based on public consultation and interview with several worker and worker union th Public consultation on May 23 – on May 23th – 25th 2016 it was evident that no forms of forced or trafficked labour c. What is the process of recruiting have been used. Workers/employee entered into organization voluntarily and 25th 2016 and interview with foreign/ migrant workers directly and/or freely, without the threat of a penalty and they have the freedom to terminate employee through licenced outsourcing agencies/ employment without penalty given reasonable notice or as per agreement. labour suppliers? PKB years 2015 - 2017 There were no migrant workers in PT PP Lonsum Tbk, Si Bulan Estate, Bah d. Who is the person responsible for Field observation Bulian Estate, Bah Lias Estate, Dolok Estate and Dolok Mill. It’s verified during selecting/ screening labour suppliers/ audit documentation list of employee, interview with employee and stakeholders. outsourcing agents? Person who responsible for selecting/screening labour suppliers was KTU e. Do the foreign workers have to pay a (Kepala Tata Usaha) under supervision fro Estate Managers. fee to the employment recruitment agency or labour suppliers in the Employees work based on contract labor agreement which contains agreements workers’ countries of origin? If yes, include: working time, dependents, payroll and consent of both parties. Working does it jeopardise decent living wage? hours, deductions, overtime, sickness, holiday entitlement, maternity leave, f. Are there restrictions on workers from leaving the mill or estate or their
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reasons for dismissal, period of notice, etc described in PKB years 2015 - 2017 which have been agreed between the employees (represented by SPSI) and WORK ITEM: © SAI Global Limited Copyright 2008 - ABN 67 050 611 642
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NO
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR company.
g. What is the process if a worker wants to terminate their employment before their contract expires? In this case, who pays for the return transportation? h. What are the penalties imposed if the workers were terminated or fired before their contract expires? i.
Who keeps the workers passports or identity documents?
j.
If workers do not keep their passports or identity documents, is this legally allowed?
k. What is the process for workers’ to hand over their passports or identity documents to the company? l.
6.12.2
Do workers have unrestricted access to their passports or identity documents? Describe how workers are able to access their documents?
Where applicable, it shall be demonstrated that no contract substitution has occurred. a. Is there evidence of contract substitution occurring? b. Are foreign workers asked to sign a contract upon arriving in the receiving country? If yes, is that contract identical to the one signed in the country of origin? c. Are workers given a copy of their
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Company sustainability Policy attachment SK Direksi No. 001/DIR/IX/2014, dated 1 September 2014 Public consultation on May 23th – 25th 2016 and interview with employee
Based on observation of several employee contract and public consultation with stakeholders on May 23h – 25th, 2016 and interview with employee could be demonstrated that there was no contract substitution occurred. There were no migrant workers in PT PP Lonsum – Si Bulan Estate, Bah Bulian Estate, Bah Lias, Dolok Estate and Dolok Mill. It’s verified during audit documentation list of employee, interview with employee and stakeholders. Employees work based on contract labor agreement which contains agreements include: working time, dependents, payroll and consent of both parties. Workers
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CRITERION / INDICATOR CHECKLIST employment contracts? If yes, is the contract identical to the one signed at the time of recruitment?
OBSERVATIONS & OBJECTIVE EVIDENCE PKB years 2015 - 2017 Field observation
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR was given a copy of their employment contracts and the contract was identical to the one signed at the time of recruitment.
(M) Where temporary or migrant workers are employed, a special labour policy and procedures shall be established and implemented.
6.12.3
Specific Guidance: For 6.12.3: The special labour policy should include: • Statement of the non-discriminatory practices; • No contract substitution; • Post-arrival orientation programme to focus especially on language, safety, labour laws, cultural practices etc.; • Decent living conditions to be provided. a. What is the company’s policy and Public consultation on May 23th – There were no migrant workers in PT PP Lonsum Tbk, – Si Bulan Estate, Bah procedures for temporary or Bulian Estate, Bah Lias, Dolok Estate and Dolok Mill. It’s verified during audit 25th 2016 and interview with foreign/migrant workers? Does the documentation list of employee, interview with employee and stakeholders. employee special labour policy include: Statement of the non-discriminatory Field observation practices? No contract substitution? Post-arrival orientation programme with emphasis on language, safety, labour laws, cultural practices etc.? The provision of decent living conditions? b. Have the policies and procedures been implemented?
6.132
Growers and millers respect human rights. *2 New Criteria - Growers and millers respect human rights. (M) A policy to respect human rights shall be documented and communicated to all levels of the workforce and operations (see Criteria 1.2 and 2.1).
6.13.1
Guidance: See also Criterion 6.3. All levels of operations will include contracted third parties (e.g those involved in security).
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COMPLIANCE (YES/NO)
Note: From the UN Guiding Principles on Business and Human Rights: “The responsibility of business enterprises to respect human rights refers to internationally recognised human rights – understood, at a minimum, as those expressed in the International Bill of Human Rights and the principles concerning fundamental rights set out in the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work” (“The corporate responsibility to respect human rights” in Guiding Principles on Business and Human Rights). The RSPO WG on Human Rights will provide a mechanism to identify, prevent, mitigate and address human rights issues and impacts. The resulting Guidance will identify the relevant issues on human rights to all RSPO Members. a. Is there a company policy on human Policy to respect human rights has been documented in Company sustainability YES Company sustainability Policy rights? Policy attachment SK Direksi No. 001/DIR/IX/2014, dated 1 September 2014. attachment SK Direksi No. Top management has commitment to respect human right refers to 001/DIR/IX/2014, dated 1 b. How is this communicated to all internationally recognised human rights set out in the International Labour September 2014 employees, including outsourced Organization’s Declaration on Fundamental Principles and Rights at Work. The workers, customers and suppliers? If Minutes of socialization on document has been communicated to all levels of the workforce and operations by training, how often is the training January 2015 to office wrokers, based on public consultation with labour union, worker and gender committee. conducted? mill workers in July and August The policy has been communicated to all employees, including outsourced 2015, estate workers in c. Who has the task of communicating workers, customers and suppliers by socialization/dissemination. Socialization September and October 2015 the policy internally and externally? was conduct regularly once a year. Dissemination of social communication Public consultation May 23th – d. Does the company have any procedure has been performed to stakeholder on stakeholder meeting in July 25th 2016 and interview with outstanding cases of human rights 2014. Socialization to all levels of employees performed through master employee violations? morning. Field observation During audit and based on verification on public consultation with stakeholders in May 23th – 25th 2016 and interview with employee could be demonstrated that there was no cases of human rights violations in PT PP Lonsum Tbk,– Si Bulan Estate, Bah Bulian Estate, Bah Lias, Dolok Estate and Dolok Mill.
PRINCIPLES 7: RESPONSIBLE DEVELOPMENT OF NEW PLANTINGS NO 7.1 7.1.1
CRITERION / INDICATOR OBSERVATIONS & OBJECTIVE COMPLIANCE SUMMARY OF FINDINGS FOR EACH INDICATOR CHECKLIST EVIDENCE (YES/NO) 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. (M) An independent social and environmental impact assessment (SEIA), undertaken through a participatory methodology including the relevant affected stakeholders, shall be
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CRITERION / INDICATOR CHECKLIST documented.
OBSERVATIONS & OBJECTIVE EVIDENCE
SUMMARY OF FINDINGS FOR EACH INDICATOR
COMPLIANCE (YES/NO)
Guidance: See also Criteria 5.1 and 6.1. The terms of reference should be defined and impact assessment should be carried out by accredited independent experts, in order to ensure an objective process. Both should not be done by the same body. A participatory methodology including external stakeholder groups is essential to the identification of impacts, particularly social impacts. Stakeholders such as local communities, government departments and NGOs should be involved through the use of interviews and meetings, and by reviewing findings and plans for mitigation. It is recognised that oil palm development can cause both positive and negative impacts. These developments can lead to some indirect/secondary impacts which are not under the control of individual growers and millers. To this end, growers and millers should seek to identify the indirect/secondary impacts within the SEIA, and where possible work with partners to explore mechanisms to mitigate the negative indirect impacts and enhance the positive impacts. The potential impacts of all major proposed activities should be assessed in a participatory way prior to development. The assessment should include, in no order of preference and as a minimum: • Assessment of the impacts of all major planned activities, including planting, mill operations, roads and other infrastructure; • Assessment, including stakeholder consultation, of High Conservation Values (see Criterion 7.3) that could be negatively affected; • Assessment of potential effects on adjacent natural ecosystems of planned developments, including whether development or expansion will increase pressure on nearby natural ecosystems; • Identification of watercourses and wetlands and assessment of potential effects on hydrology and land subsidence of planned developments. Measures should be planned and implemented to maintain the quantity, quality and access to water and land resources; • Baseline soil surveys and topographic information, including the identification of steep slopes, marginal and fragile soils, areas prone to erosion, degradation, subsidence, and flooding; • Analysis of type of land to be used (forest, degraded forest, cleared land); • Analysis of land ownership and user rights; • Analysis of current land use patterns; • Assessment of potential social impacts on surrounding communities of a plantation, including an analysis of potential effects on livelihoods, and differential effects on women versus men, ethnic communities, and migrant versus long-term residents; • Identification of activities which may generate significant GHG emissions. Plans and field operations should be developed and implemented to incorporate the results of the assessment. One potential outcome of the assessment process is that the development may not proceed because of the magnitude of potential impacts. For smallholder schemes, the scheme management should address this Criterion. For individual smallholders, this Criterion does not apply. Where there is no National Interpretation, for land areas greater than 500ha, a full independent assessment will be required. For land areas less than 500ha, an internal assessment using selected components of SEIA and HCV assessments can be used. Where such internal assessments identify significant environmentally or socially sensitive areas or issues, an independent assessment will be undertaken. For National Interpretation: National Interpretation will identify the relevant accreditations for independent experts.
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CRITERION / INDICATOR OBSERVATIONS & OBJECTIVE COMPLIANCE SUMMARY OF FINDINGS FOR EACH INDICATOR CHECKLIST EVIDENCE (YES/NO) National Interpretation will consider setting an appropriate threshold for the size of new plantings, below which an internal assessment is allowed, and above which an independent SEIA is required. This will list negative social impacts (e.g. displacement, loss of the livelihoods of local peoples, etc.) in the national context. a. Is there any new plantings or Planted areas for 2014-2015 were covered in DPLH. The area was conversion YES Document of DPLH of Si Bulan operations, or expanding existing ones from rubber plantation to oil palm plantation. As indicated in audit findings Estate #18.32/660/348-A/2011 by the company? What is the size of dated 29 September 2011 from indicator 5.1.1 Document of DPLH of Si Bulan Estate #18.32/660/348-A/2011 the new planting area? Kantor Lingkungan Hidup dated 29 September 2011 from Kantor Lingkungan Hidup Serdang Bedagai Serdang Bedagai Regent Regent. AMDAL was prepared by PT Sucofindo, Medan Branch. b. Has an independent social and environmental impact assessment (SEIA) been documented for the new plantings? c. Are the impact assessments prepared by accredited independent experts? d. Are all environmental and social impacts adequately identified? e. Is the SEIA undertaken based on the scope of operation? f. Is the SEIA undertaken in a participatory manner, including the relevant affected stakeholders?
PT PP London Sumatra Indonesia Tbk – Dolok Mill and its supply bases have implemented procedure for identifying environmental aspect and evaluating its impact based on Environmental Management System ISO 14001. The result of environmental aspect and impact identification and evaluation was documented. Last review and update of environmental aspect and impact register for Dolok Mill and its supply bases was performed on 15 December 2015. Social impact assessment result was documented in DPLH document (released in 2011) covering some impacts such as: working opportunities, income, local perception, social conflict. Action plan to address those issues were also established to address social issues such as : interview with local communities and workers, dust & noise pollution control, field survey for contagious disease, health sanitation, etc.
g. Does the SEIA assessment include and as a minimum: • Assessment of the impacts of all major planned activities, including planting, mill operations, roads and other infrastructure? • Assessment, including stakeholder consultation, of High Conservation Values (see Criterion 7.3) that could be negatively affected? • Assessment of potential effects on adjacent natural ecosystems of planned developments, including whether development or expansion
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•
•
• • • •
•
CRITERION / INDICATOR CHECKLIST will increase pressure on nearby natural ecosystems? Identification of watercourses and wetlands and assessment of potential effects on hydrology and land subsidence of planned developments. Measures should be planned and implemented to maintain the quantity, quality and access to water and land resources? Baseline soil surveys and topographic information, including the identification of steep slopes, marginal and fragile soils, areas prone to erosion, degradation, subsidence, and flooding? Analysis of type of land to be used (forest, degraded forest, cleared land)? Analysis of land ownership and user rights? Analysis of current land use patterns? Assessment of potential social impacts on surrounding communities of a plantation, including an analysis of potential effects on livelihoods, and differential effects on women versus men, ethnic communities, and migrant versus long-term residents? Identification of activities which may generate significant GHG emissions?
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SUMMARY OF FINDINGS FOR EACH INDICATOR
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CRITERION / INDICATOR CHECKLIST h. What were the main findings of the assessment? i.
7.1.2
7.1.3
7.2
7.2.1
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR
Were secondary impacts of oil palm development identified in the SEIA?
Appropriate management planning and operational procedures shall be developed and implemented to avoid or mitigate identified potential negative impacts. a.
Does the findings of the SEIA uncover any negative impacts? If yes, has a management plan and operational procedures been developed to mitigate the negative impacts?
b.
Has the management plan and operational procedures been implemented?
Document of DPLH of Si Bulan Estate #18.32/660/348-A/2011 dated 29 September 2011 from Kantor Lingkungan Hidup Serdang Bedagai Regent
The SEIA covered negative impacts. Management plan and operational procedures been developed to mitigate the negative impacts
YES
Where the development includes an outgrower scheme, the impacts of the scheme and the implications of the way it is managed shall be given particular attention. a.
Are any outgrowers involved in the new plantings?
b.
Has management prepared a plan for the outgrower scheme?
c.
Does the SEIA include an assessment of impacts and the implications of the way the outgrower scheme is managed?
NA
No schemed smallholders for this certification unit
NA
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. (M) Soil suitability maps or soil surveys adequate to establish the long-term suitability of land for oil palm cultivation shall be available and taken into account in plans and operations. Guidance: These activities can be linked to the Social and Environmental Impact Assessment (SEIA) (see Criterion 7.1) but need not be done by independent experts. Soil suitability maps or soil surveys should be appropriate to the scale of operation and should include information on soil types, topography, hydrology, rooting depth, moisture availability, stoniness and fertility to ensure long-term sustainability of the development. Soils requiring appropriate practices should be identified (see Criteria 4.3 and 7.4). This information should be used to plan planting programmes, etc. Measures should be planned to minimise erosion through appropriate use of heavy machinery, terracing on slopes, appropriate road construction,
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CRITERION / INDICATOR OBSERVATIONS & OBJECTIVE COMPLIANCE SUMMARY OF FINDINGS FOR EACH INDICATOR CHECKLIST EVIDENCE (YES/NO) rapid establishment of cover, protection of riverbanks, etc. Areas located within the plantation perimeters that are considered unsuitable for long-term oil palm cultivation will be delineated in plans and included in operations for conservation or rehabilitation as appropriate (see Criterion 7.4). Assessing soil suitability is also important for smallholders, particularly where there are significant numbers operating in a particular location. Information should be collected on soil suitability by companies planning to purchase Fresh Fruit Bunches (FFB) from potential developments of independent smallholders in a particular location. Companies should assess this information and provide information to independent smallholders on soil suitability, and/or in conjunction with relevant government/public institutions and other organisations (including NGOs) provide information in order to assist independent smallholders to grow oil palm sustainably. a. Are soil suitability/survey maps for the Topographic Map, Slope Class Results of land surveys were presented in several maps: Topographic Map, YES planted areas available or in place? Slope Class Maps and Map Soil Type and Slope Class Map scale 1: 35,000. Maps and Map Soil Type and Is the map adequate to establish Slope Class Map in Si Bulan Area of plantation has been located within the plantation perimeters that the long-term suitability of land for Estate scale 1: 35,000 considering area for conservation. oil palm cultivation? The organisation has no plan to purchase FFB from potential developments of Are the soil suitability maps or independent suppliers but not from independent supplier in particular location. soil surveys appropriate to the scale of operation? Does the soil suitability maps or soil surveys include information on soil types, topography, and hydrology, rooting depth, moisture availability, stoniness and fertility? Do the soil suitability maps or soil surveys identify soils requiring appropriate practices? b.
Are there any areas located within the plantation perimeters that are considered unsuitable for long-term oil palm cultivation? Are such areas delineated in the plans? Are there areas set aside for conservation? Or are there plans for rehabilitation as appropriate?
c.
Does the company plan to purchase
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CRITERION / INDICATOR CHECKLIST Fresh Fruit Bunches (FFB) from potential developments of independent suppliers in a particular location?
NO
d.
7.2.2
7.3
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR
If yes, the following information should be obtained: Is information on soil suitability collected and assessed? Has the company provided information on soil suitability to the independent smallholders in order to assist them to grow oil palm sustainably?
Topographic information adequate to guide the planning of drainage and irrigation systems, roads and other infrastructure shall be available and taken into account in plans and operations. a.
Does the area where plantings are done require drainage or irrigation?
b.
If yes, is there adequate topographic information to guide the planning of drainage and irrigation systems?
c.
Is the topographic information and best practices taken into consideration during the development of roads and infrastructure?
Topographic Map, Slope Class Maps and Map Soil Type and Slope Class Map in Si Bulan Estate scale 1: 35,000
Based on the above mentioned maps, there were no fragile soils present at Si Bulan Estates. Estates were developed based on land suitability.
YES
The topographic information and best practices was taken into consideration during the development of roads and infrastructure.
New plantings since November 2005 have not replaced primary forest or any area required to maintain or enhance one or more High Conservation Values. (M) There shall be evidence that no new plantings have replaced primary forest, or any area required to maintain or enhance one or more High Conservation Values (HCVs), since November 2005. New plantings shall be planned and managed to best ensure the HCVs identified are maintained and/or enhanced (see Criterion 5.2).
7.3.1
Specific Guidance: For 7.3.1: Evidence should include historical remote sensing imagery which demonstrates that there has been no conversion of primary forest or any area required to maintain or enhance one or more HCV. Satellite or aerial photographs, land use maps and vegetation maps should be used to inform the HCV assessment. Where land has been cleared since November 2005, and without a prior and adequate HCV assessment, it will be excluded from the RSPO certification programme until an adequate HCV compensation plan has been developed and accepted by the RSPO.
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CRITERION / INDICATOR OBSERVATIONS & OBJECTIVE COMPLIANCE SUMMARY OF FINDINGS FOR EACH INDICATOR CHECKLIST EVIDENCE (YES/NO) Guidance: This Criterion applies to forests and other vegetation types. This applies irrespective of any changes in land ownership or farm management that have taken place since November 2005. HCVs may be identified in restricted areas of a landholding, and in such cases new plantings can be planned to allow the HCVs to be maintained or enhanced. The HCV assessment process requires appropriate training and expertise, and will include consultation with local communities, particularly for identifying social HCVs. HCV assessments should be conducted according to the National Interpretation of the HCV criteria or according to the Global HCV Toolkit if a National Interpretation is not available (see Definitions). Developments should actively seek to utilise previously cleared and/or degraded land on mineral soil. Plantation development should not put indirect pressure on forests through the use of all available agricultural land in an area. Where landscape level HCV maps have been developed, these should be taken into account in project planning, whether or not such maps form part of government land use plans. In case of small areas located either in hydrologically sensitive landscapes or in HCV areas where conversion can jeopardise large areas or species, an independent assessment will be required. HCV areas can be very small. Once established, new developments should comply with Criterion 5.2. For National Interpretation: National Interpretation should refer to existing national definitions of HCVs (or where these do not exist refer to definitions in this document), or equivalent land-use/conservation plans or consider how growers and the audit team can identify High Conservation Values. This may involve collaboration with other bodies. a. Since November 2005, have any new Land clearing was in accordance with HCV identification, as indicated in YES HCV assessment report PT PP plantings replaced primary forest, or plantation maps. (Major NCR Lonsum Si Bulan Estate 2014 any area required to maintain or 2016-18 closed) Public consultation report on May HCV assessment performed in 24 – 26 May 2014 in Si Bulan Estate before enhance one or more High conversion from rubber plantation to oil palm plantation 2014 and 2015. and June 2014 Conservation Values (HCVs)? If yes, was an adequate HCV assessment There were HCV identified in Si Bulan Estate : HCV Map with scale 1 : 30.000 carried out prior to the clearing of the HCV 4.1 (area or ecosystem which important as water supply and flood land? control for downstream community): riparian buffer zone of Bahilang river, b. Where HCVs have been identified on Gajah River, Besar River, Candu River and Delapan river with total area the land that is intended for new 6.543 ha plantings, have new plantings been HCV 4.2 (Areas Important for the Prevention of Erosion and Sedimentation): planned and managed to best ensure Pulau Besar with total area 1.666 ha the HCVs identified are maintained and/or enhanced (see Criterion 5.2)? HCV 6 (area which have important function for traditional culture identity of c.
d.
Are there finalised HCV maps and areas endorsed/signed off by management showing type of HCV and area coverage (ha)?
local community): cemetery, with total area 0.429 ha. No NPP conduct for this conversion from rubber plantation to oil palm plantation.
Has the company comply with NPP procedures? i.e. NPP documents was
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NO
7.3.2
e.
Is CB verification of NPP documents include field verification? If not, field verification of HCV is required during certification audit.
f.
Where land has been cleared since November 2005, and without a prior and adequate HCV assessment, is there evidence that an adequate HCV compensation plan for the affected area has been developed and accepted by the RSPO?
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR Major Non-conformance 2016-18: HCV assessments did not include land use change analysis to determine changes to the vegetation since November 2005. There was conversion from rubber plantation to oil palm year 2014 – 2015 in Si Bulan Estate.
(M) A comprehensive HCV assessment, including stakeholder consultation, shall be conducted prior to any conversion or new planting. This shall include a land use change analysis to determine changes to the vegetation since November 2005. This analysis shall be used, with proxies, to indicate changes to HCV status. a. Is the prepared HCV assessment Identification of any protected, rare, threatened or endangered species and HCV YES HCV assessment report PT PP comprehensive? Was the assessment habitat has been performed by SAIL Consulting. The HCV assessment (Major NCR Lonsum SiBulan Estate, Bah prepared in consultation with the performed in 24 – 26 May 2014 in Si Bulan Estate. Peer Review was conducted 2016-18 closed) Bulian Estate, Bah Lias Estate affected stakeholders prior to any by Dr. Jarwadi Budi Hernowo Independent Consultant on June 2014. and Dolok Estate 2014 conversion or new planting? Public consultation report on May HCV assessment been conducted and cover the following: b. Do the HCV assessments include land and June 2014 Presence of protected areas that could be significantly affected by the use change analysis to determine grower or miller. HCV Map with scale 1 : 30.000 changes to the vegetation since November 2005? (This analysis shall Conservation status (e.g. IUCN status), legal protection, population status be used, with proxies, to indicate and habitat requirements of rare, threatened, or endangered (RTE) species changes to HCV status) that could be significantly affected by the grower or miller. Identification of HCV habitats, such as rare and threatened ecosystems, that could be significantly affected by the grower or miller. HCV Asessment performed by a qualified HCV assessor approval RSPO registered 2012 and 2013, comprised of: -
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Sutopo, S. Hut (ahli pengelolaan dan konservasi biodiversity)
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SUMMARY OF FINDINGS FOR EACH INDICATOR -
Sulfan Ardiansyah, S. Hut (ahli hidrologi dan konservasi tanah)
-
Gilang Prastya, S.Hut (ahli social budaya)
-
M. Sayidina Ali, Amd (ahli GIS)
Public consultation was carried out at Dolok Masihul Sub-district on 26 May 2014 in Si Bulan Estate, participated by people representing the local community and local government. It had intended to get aspiration and responses from stakeholders related identification result of HCV and its management. HCV assessment were include checking of available biological records in and around of PT PP Lonsum Si Bulan Estate. Based on final report of HCV identification and analysis in PT. PP Lonsum – Si Bulan Estate it was demonstrated that the HCV assessment include both the planted area itself and relevant wider landscape-level considerations, e.g. the location of wildlife sightings. Assessment performed in accordance to the latest methodology available at global and national level. The method used in accordance with scientific standards and Identification Guide HCVA in Indonesia version 2 in 2008 compiled by a Indonesia consortium of HCV toolkit revision. Stages of identification activities include:
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-
Review of the data and information that has been available
-
Early identification of HCV
-
Drafting of plans for field surveys
-
Secondary data collection
-
Field survey
-
Mapping and landscaping
-
Assessment aspect fauna
-
Assessment aspects of flora
-
Assessment aspects of social, economic and cultural
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SUMMARY OF FINDINGS FOR EACH INDICATOR -
Analysis and Mapping
HCV identified was mapped in HCV Map with scale 1 : 30.000. Major Non-conformance 2016-18: HCV assessments did not include land use change analysis to determine changes to the vegetation since November 2005. There was conversion from rubber plantation to oil palm year 2014 – 2015 in Si Bulan Estate. 7.3.3
Dates of land preparation and commencement shall be recorded. a. Are the dates of land preparation and commencement recorded?
7.3.4
NA
Land clearing in 2014 and 2015 was from rubber plantation with total area 68.54 Ha in 2014 and 305.34 Ha in 2015. Land clearing was conducted in January 2014 and 2015 by contractor CV. Surya Citra Mandiri. Land clearing activities covered uprooting, staking, terracing and making road. Result of land clearing was recorded in “Progress Land Clearing Si Bulan Estate 2014 and 2015”.
YES
(M) An action plan shall be developed that describes operational actions consequent to the findings of the HCV assessment, and that references the grower’s relevant operational procedures (see Criterion 5.2). Management plan was available containing appropriate measures that are YES a. Has the company developed an action HCV assessment report PT PP expected to maintain and/or enhance them, includes: Lonsum Si Bulan Estate plan that describes operational actions consequent to the findings of the HCV - Maintenance of HCV marking, manual upkeep, NPK fertilization by drilling assessment? at the riparian b. Does the action plan reference the grower’s relevant operational procedures (see Criterion 5.2)?
-
Replacement of warning sign
-
Monitoring of riparian
-
Erosion handling
-
Monitoring the presence of wildlife
-
Monitoring of illegal hunting
Management plans and monitoring of HCV was breakdown in Division HCV Management Program, each Division assistant was responsible for the program and its implementation. However the measures contained in the management Doc ID: 3843 / Issue Date May, 2014
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NO
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OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR plan was not actively implemented to maintain and/or enhance HCV values.
Areas required by affected communities to meet their basic needs, taking into account potential positive and negative changes in livelihood resulting from proposed operations, shall be identified in consultation with the communities and incorporated into HCV assessments and management plans (see Criterion 5.2). 7.3.5
Specific Guidance: For 7.3.5: The management plan will be adaptive to changes in HCV 5 and 6. Decisions will be made in consultation with the affected communities. a. Have areas required by affected DPLH establishment required mandatory dissemination to relevant stakeholder Document of DPLH of Si Bulan communities to meet their basic needs, including communities and regulatory body, about the activities covered in the Estate #18.32/660/348-A/2011 taking into account potential positive studies including potential positive and negative changes in livelihood resulting dated 29 September 2011 from and negative changes in livelihood from proposed operations. Kantor Lingkungan Hidup resulting from proposed operations, Serdang Bedagai Regent Areas converted from rubber plantation to oil palm plantation 2014 – 2015 have been identified in consultation with the HCV assessment report PT PP been incorporated into HCV assessments and management plans communities? Lonsum Si Bulan Estate
YES
b. Have these areas been incorporated into HCV assessments and management plans (see Criterion 5.2)? 7.4
Extensive planting on steep terrain, and/or marginal and fragile soils, including peat, is avoided. Maps identifying marginal and fragile soils, including excessive gradients and peat soils, shall be available and used to identify areas to be avoided.
7.4.1
Guidance: This activity should be integrated with the social and environmental impact assessment (SEIA) required by Criterion 7.1. Planting on extensive areas of peat soils and other fragile soils should be avoided (see Criterion 4.3). Adverse impacts may include hydrological risks or significantly increased risks (e.g. fire risk) in areas outside the plantation (see Criterion 5.5). For National Interpretation: National Interpretation will determine specific controls and thresholds, such as slope limits, listing soil types on which planting should be avoided (especially peat soils), the proportion of plantation area that can include marginal/fragile soils, and definitions of ‘extensive’, ‘marginal’, ‘fragile’, and ‘excessive’. Based on Map of Soil type Unit, there are no areas of marginal land/fragile soil in YES Topographic Map, Slope Class a. Are there maps identifying marginal Si Bulan Estate. Maps and Map Soil Type and and fragile soils, including excessive Slope Class Map in Si Bulan gradients and peat soils? Estate scale 1: 35,000 b. If peat is present, does the map show the extent, nature, and depth of peat?
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NO
CRITERION / INDICATOR CHECKLIST
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR
c. Are the maps used to identify areas that are inappropriate for planting? d. Have the maps been incorporated for use in the social and environmental impact assessment (SEIA)? e. Is there evidence that planting on extensive areas of peat soils and other fragile soils have been avoided? 7.4.2
(M) Where limited planting on fragile and marginal soils, including peat, is proposed, plans shall be developed and implemented to protect them without incurring adverse impacts. a. Are there plans to protect planted areas on fragile and marginal soils, including peat from adverse impacts? b. Does the plan take into consideration specific control and NI thresholds, including: Slope limits; List of soil types that need to be avoided, especially peat soil; Proportion of plantation areas that can include marginal / fragile soil.
OP-2 Procedure of Preparation, Planting, Replanting and Conversion from Rubber, Cocoa and Coconut
The organisation has management strategy for planting on slopes above certain limit such as terracing including conversion from rubber, cocoa and coconut. System for planting on slopes area was provided through terracing, levelling of terrace, planting legume cover crops and determining of planting space.
YES
Practices to control and minimize erosion have been applied by : Terracing Making the catchment where runoff water, called: “Tapak Kuda”. Making the catchment where runoff water, called “Rorak”. Planting legume cover crop.
c. Has the plan been implemented? 7.5
No new plantings are established on local peoples’ land where it can be demonstrated that there are legal, customary or user rights, without their free, prior and informed consent. This is dealt with through a documented system that enables these and other stakeholders to express their views through their own representative institutions. (M) Evidence shall be available that affected local peoples understand they have the right to say ‘no’ to operations planned on their lands before and during initial discussions, during the stage of information gathering and associated consultations, during negotiations, and up until an agreement with the grower/miller is signed and ratified by these local peoples.
7.5.1
Refer also to criteria 2.2, 2.3, 6.2, 6.4 and 7.6 for Indicators and Guidance on compliance. Guidance: This activity should be integrated with the Social and Environmental Impact Assessment (SEIA) required by Criterion 7.1.
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NO
CRITERION / INDICATOR OBSERVATIONS & OBJECTIVE COMPLIANCE SUMMARY OF FINDINGS FOR EACH INDICATOR CHECKLIST EVIDENCE (YES/NO) Where new plantings are considered to be acceptable, management plans and operations should maintain sacred sites. Agreements with indigenous peoples, local communities and other stakeholders should be made without coercion or other undue influence (see Guidance for Criterion 2.3). Relevant stakeholders include those affected by or concerned with the new plantings. Free, prior and informed consent (FPIC) is a guiding principle and should be applied to all RSPO members throughout the supply chain. Refer to RSPO approved FPIC guidance (‘FPIC and the RSPO; A Guide for Companies’, October 2008). Customary and user rights will be demonstrated through participatory user mapping as part of the FPIC process. Oil palms planted in 2014 – 2015 were conversion from rubber plantation and Document of DPLH of Si Bulan a. Does the new planting area include DPLH document was established conserning the change. DPLH establishment Estate #18.32/660/348-A/2011 ‘local people’s land’? required mandatory dissemination to relevant stakeholder including communities dated 29 September 2011 from b. If yes, has the community given their and regulatory body, about the activities covered in the studies. Since the DPLH Kantor Lingkungan Hidup consent? already approved, it was concluded that dissemination was already done by the Serdang Bedagai Regent organisation. c. Is there evidence to demonstrate that the consent/agreement has been given?
d. Has the community been given the opportunity to say ‘no’ to the proposed development? e. Are the principles of the FPIC process followed?
7.6
YES
Concession area of PT. Lonsum Indonesia is a former concession of PT. Harrisons & Crossfield (H&C). In 1908, H&C established Harrison & Crossfiled Plantation Ltd. H&C bought Gunung Malayu Estate in 1926. At the 1928 H&C bought Tjong Ah Fie Plantation including Rambong Sialang, Egaharap, Bengambing, Tanjoeng Poteri, Bandar Teloe, Suka Radjin, Nagaga, Maligas, Bolok, Bah Lias, Bah Hilang and Mardjandi. It was before FPIC endorsed as one of the principle under RSPO P & C 2007. From the interview with stakeholder it was known there was no land conflict at the time audit. The land planted between 2014 – 2015 periods was a conversion from rubber plantation.
Where it can be demonstrated that local peoples have legal, customary or user rights, they are compensated for any agreed land acquisitions and relinquishment of rights, subject to their free, prior and informed consent and negotiated agreements. (M) Documented identification and assessment of demonstrable legal, customary and user rights shall be available. Specific Guidance: For 7.6.1: This activity shall be integrated with the social and environmental impact assessment (SEIA) required by Criterion 7.1.
7.6.1 Guidance: Refer to Criteria 2.2, 2.3 and 6.4 and associated Guidance. This requirement includes indigenous peoples (see Annex 1). Refer to RSPO approved FPIC guidance (‘FPIC and the RSPO; A Guide for Companies’, October 2008)
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NO a.
7.6.2
CRITERION / INDICATOR CHECKLIST Does the SEIA include the identification and assessment of legal, customary and user rights of the area?
b.
Does the company have SOPs to identify and assess any legal, customary and user rights of the local peoples?
c.
Is there any known notification from the stakeholders claiming to have legal, customary and/or user rights on the land for the new planting area?
d.
Has the claim been identified and assess according to the protocol/SOP? Does the process follow and respect the FPIC principles?
e.
Has the process of identification and assessment been recorded/ documented and made publicly available?
OBSERVATIONS & OBJECTIVE EVIDENCE NA
SUMMARY OF FINDINGS FOR EACH INDICATOR PT PP Lonsum Si Bulan Estate has established in 1908. Concession area of PT. Lonsum Indonesia is a former concession of PT. Harrisons & Crossfield (H&C). In 1908, H&C established Harrison & Crossfiled Plantation Ltd. Therefore the indicator 7.6 Major 1 was considered as not applicable.
COMPLIANCE (YES/NO) NA
(M) A system for identifying people entitled to compensation shall be in place. a. Does the company have a system in place to identify people and/or community groups entitled to compensation? b. Is the system documented? c. Does the system follow and respect the FPIC principles?
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“Pedoman Kebijakan Akuisisi Lahan dan Tanam Tumbuh February 2007”
The company has implemented procedures for conflict resolution mechanism specified in “Pedoman Kebijakan Akuisisi Lahan dan Tanam Tumbuh February 2007”. Procedure explaining the land compensation process from identification of landowners, Input data (soil mapping), Negotiating compensation (according to the agreement and witnessed by a competent witness), payment of compensation, documentation. Procedure included FPIC for communication and consultation with the local communities and other affected or interested parties.
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YES
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NO 7.6.3
OBSERVATIONS & OBJECTIVE EVIDENCE
(M) A system for calculating and distributing fair compensation (monetary or otherwise) shall be in place. a. Does the company have a system in place to calculate and distribute fair compensation (monetary or otherwise)?
“Pedoman Kebijakan Akuisisi Lahan dan Tanam Tumbuh February 2007”
b. Is the system documented and publicly made available?
YES
Communities that have lost access and rights to land for plantation expansion shall be given opportunities to benefit from plantation development. a.
7.6.5
The company has implemented procedures for conflict resolution mechanism specified in “Pedoman Kebijakan Akuisisi Lahan dan Tanam Tumbuh February 2007”. Procedure explaining the land compensation process from identification of landowners, Input data (soil mapping), Negotiating compensation (according to the agreement and witnessed by a competent witness), payment of compensation, documentation. Procedure included FPIC for communication and consultation with the local communities and other affected or interested parties.
c. Does the system follow and respect the FPIC principles? 7.6.4
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR
Does the company provide communities that have lost access and rights to land for plantation expansion opportunities to benefit from plantation development?
NA
PT PP Lonsum Si Bulan Estate has established in 1908. Concession area of PT. Lonsum Indonesia is a former concession of PT. Harrisons & Crossfield (H&C). In 1908, H&C established Harrison & Crossfiled Plantation Ltd. Therefore the indicator 7.6 Minor 4 was considered as not applicable.
NA
The process and outcome of any compensation claims shall be documented and made publicly available. a.
Is the process and outcome of any compensation claims documented and made publicly available?
“Pedoman Kebijakan Akuisisi Lahan dan Tanam Tumbuh February 2007”
“Pedoman Kebijakan Akuisisi Lahan dan Tanam Tumbuh February 2007” has been notified to stakeholders even no possible land acquisition at current time.
YES
Evidence shall be available that the affected communities and rights holders have access to information and advice, that is independent of the project proponent, concerning the legal, economic, environmental and social implications of the proposed operations on their lands. 7.6.6
Specific Guidance: For 7.6.6: Growers and millers will confirm that the communities (or their representatives) gave consent to the initial planning phases of the operations prior to the new issuance of a concession or land title to the operator.
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NO
CRITERION / INDICATOR CHECKLIST a. Is there record to show that the community and rights holders have freedom to access information and independent advisor(s) concerning the legal, economic, environmental and social implications of the proposed operations on their lands? b. Is there evidence to show that the company has sought the community and the right holders’ consent to the initial planning phases of the operations prior to the new issuance of a concession or land title? c. Did the communities (or their representatives) give consent to the initial planning phases of the operations prior to the new issuance of a concession or land title?
OBSERVATIONS & OBJECTIVE EVIDENCE Communication procedure (EMSP05), date on 10 August 2009
SUMMARY OF FINDINGS FOR EACH INDICATOR Documents available to the public specified in the Procedure Communication EMS-P05 dated 10 August 2009. Documents available to the public and stakeholder can be provided to stakeholders according to their relevance through a written request to the organization. List of information available in Indonesian and easily understood by stakeholder. Documents available to the public placed in the respective sections within the organization. Such as land title right/ HGU certificate placed in KTU and other Information provided adequate at minimum, an information summary of the document listed such as :
Land titles/user rights (Criterion 2.2) -
identification on HCV areas, maps, management and monitoring HCV
Pollution prevention and reduction plans (Criterion 5.6); identification of pollutants, management and reduction measures
Details of complaints and grievances (Criterion 6.3); -
main social and environmental impacts and mitigation measures,
HCV documentation (Criteria 5.2 and 7.3);
risk assessment and mitigation, emergency response plan, training, accident records
Plans and impact assessments relating to environmental and social impacts (Criteria 5.1, 6.1, 7.1 and 7.8);
Legal boundaries ,land use, classification, total area, grant title, permit validity , NCR rights
Occupational health and safety plans (Criterion 4.7);
-
nature of complaints, parties involved, status of case
Negotiation procedures (Criterion 6.4); -
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COMPLIANCE (YES/NO) YES
SOP,
consultative,
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neutral,
inclusiveness,
timeframe,
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NO
CRITERION / INDICATOR CHECKLIST
OBSERVATIONS & OBJECTIVE EVIDENCE
SUMMARY OF FINDINGS FOR EACH INDICATOR
COMPLIANCE (YES/NO)
responsibility
Continual improvement plans (Criterion 8.1); -
Public summary of certification assessment report; -
follow RSPO format
Human Rights Policy (Criterion 6.13). -
7.7
for all elements under 8.1,
policy statement should comply to the requirements of 6.13
No use of fire in the preparation of new plantings other than in specific situations, as identified in the ASEAN guidelines or other regional best practice. (M) There shall be no land preparation by burning, other than in specific situations, as identified in the ‘Guidelines for the Implementation of the ASEAN Policy on Zero Burning’ 2003, or comparable guidelines in other regions. Specific Guidance: For 7.7.2: This activity shall be integrated with the social and environmental impact assessment (SEIA) required by Criterion 7.1.
7.7.1
Guidance: Fire should be used only where an assessment has demonstrated that it is the most effective and least environmentally damaging option for minimising the risk of severe pest and disease outbreaks, and exceptional levels of caution are required for use of fire on peat. This should be subject to regulatory provisions under respective national environmental legislation. Extension/training programmes for smallholders may be necessary. For National Interpretation: National Interpretation will identify any specific situations where such use of fire may be acceptable, for example through reference to ‘Guidelines for the Implementation of the ASEAN Policy on Zero Burning’ 2003, or comparable guidelines in other regions. Land preparation on period 2014 – 2015 during conversion from rubber YES OP-2 Procedure of Preparation, a. Is there evidence of land preparation plantation to oil palm plantation was zero burning. Planting, Replanting and by burning? Conversion from Rubber, Cocoa b. (The auditors shall conduct site and Coconut verification of the newly planted site which will include interviews with workers).
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NO
CRITERION / INDICATOR CHECKLIST
OBSERVATIONS & OBJECTIVE EVIDENCE
SUMMARY OF FINDINGS FOR EACH INDICATOR
COMPLIANCE (YES/NO)
c. Was land prepared using the burn method due to reasons or specific situations, as identified in the ‘Guidelines for the Implementation of the ASEAN Policy on Zero Burnings’ 2003, or comparable guidelines in other regions? d. If the burn method has been used for land preparation, has the company complied with the requirements of ‘Guidelines for the Implementation of the ASEAN Policy on Zero Burning’ 2003, or comparable guidelines in other regions? e. Is document showing proper justification for such activity available? 7.7.2
In exceptional cases where fire has to be used for preparing land for planting, there shall be evidence of prior approval of the controlled burning as specified in ‘Guidelines for the Implementation of the ASEAN Policy on Zero Burning’ 2003, or comparable guidelines in other regions. a. In exceptional cases where fire has to be used for preparing land for planting, is there evidence of prior approval of the controlled burning as specified in ‘Guidelines for the Implementation of the ASEAN Policy on Zero Burning’ 2003, or comparable guidelines in other regions?
Not Applicable
Not Applicable
N/A
b. Was the activity incorporated in the SEIA report? c. What were the mitigation measures? Was it implemented?
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NO
7.81
CRITERION / INDICATOR CHECKLIST Preamble *1 New Criteria - Preamble
OBSERVATIONS & OBJECTIVE EVIDENCE
SUMMARY OF FINDINGS FOR EACH INDICATOR
COMPLIANCE (YES/NO)
It is noted that oil palm and all other agricultural crops emit and sequester greenhouse gases (GHG). There has already been significant progress by the oil palm sector, especially in relation to reducing GHG emissions relating to operations. Acknowledging both the importance of GHGs, and the current difficulties of determining emissions, the following new Criterion is introduced to demonstrate RSPO’s commitment to establishing a credible basis for the Principles and Criteria on GHGs. Growers and millers commit to reporting on projected GHG emissions associated with new developments. However, it is recognised that these emissions cannot be projected with accuracy with current knowledge and methodology. Growers and millers commit to plan development in such a way to minimise net GHG emissions towards a goal of low carbon development (noting the recommendations agreed by consensus of the RSPO GHG WG2). Growers and millers commit to an implementation period for promoting best practices in reporting to the RSPO, and after December 31st 2016 to public reporting. Growers and millers make these commitments with the support of all other stakeholder groups of the RSPO. New plantation developments are designed to minimise net greenhouse gas emissions.
7.82 *2 New Criteria - New plantation developments are designed to minimise net greenhouse gas emissions. (M) The carbon stock of the proposed development area and major potential sources of emissions that may result directly from the development shall be identified and estimated. Specific Guidance: For 7.8.1: GHG identification and estimates can be integrated into existing processes such as HCV and soil assessments. The RSPO carbon assessment tool for new plantings will be available to identify and estimate the carbon stocks. It is acknowledged that there are other tools and methodologies currently in use; the RSPO working group will not exclude these, and will include these in the review process. The RSPO PalmGHG tool or an RSPO-endorsed equivalent will be used to estimate future GHG emissions from new developments using, amongst others, the data from the RSPO carbon assessment tool for new plantings. 7.8.1
Parties seeking to use an alternative tool for new plantings will have to demonstrate its equivalence to the RSPO for endorsement. Guidance This Criterion covers plantations, mill operations, roads and other infrastructure. It is recognised that there may be significant changes between the planned and final development area, hence the assessment may need to be updated before the time of implementation. Public reporting is desirable, but remains voluntary until the end of the implementation period. During the implementation period until December 31st 2016 (as specified in Criterion 5.6), reporting on GHG will be to a relevant RSPO working group (composed of all membership categories) which will use the information reported to review and fine tune the tools, emission factors and methodologies, and provide additional guidance on the process. During the implementation period the RSPO working group will seek to further develop and continually improve the RSPO carbon assessment tool for new plantings, recognising the challenges associated with estimating carbon stocks and projecting GHG emissions from new developments.
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NO
CRITERION / INDICATOR CHECKLIST
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR
Thereafter growers and millers will ensure that new plantation developments are designed to minimise net GHG emissions and commit to reporting publicly on this. Once established, new developments should report on-going operational, land use and land use change emissions under Criterion 5.6. For National Interpretation: National Interpretation will provide guidance within the national context for national requirements (e.g. high and low carbon stock lands or emission reduction requirements). Major Non-conformance 2016-19: YES a. Is there an assessment conducted to Identification and estimation of the carbon stock of the proposed development (Major NCR identify and estimate the carbon stock area and major potential sources of emissions from conversion from rubber 2016-19 closed) in the proposed development area and plantation to oil palm year 2014 – 2015 in Si Bilan Estate has not been provided. major potential sources of emissions that may result directly from the development? b. What are the tools and methodologies used to identify and estimate the carbon stock and potential sources of emission? c. Has the results of the carbon stock assessment been submitted and reported to RSPO according to RSPO procedures and timeline? There shall be a plan to minimise net GHG emissions which takes into account avoidance of land areas with high carbon stocks and/or sequestration options. 7.8.2
Specific Guidance: For 7.8.2: Growers are strongly encouraged to establish new plantings on mineral soils, in low carbon stock areas, and cultivated areas, which the current users are willing to develop into oil palm. Millers are encouraged to adopt low-emission management practices (e.g. better management of palm oil mill effluent (POME), efficient boilers etc.) in new developments. Growers and millers should plan to implement RSPO best management practices for the minimisation of emissions during the development of new plantations. Major Non-conformance 2016-19: a. Is there a plan to minimise net GHG Identification and estimation of the carbon stock of the proposed development emissions from new development? area and major potential sources of emissions from conversion from rubber b. Does this plan take into account plantation to oil palm year 2014 – 2015 in Si Bilan Estate has not been provided. avoidance of land areas with high carbon stocks, sequestration options and low-emission management
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YES (Major NCR 2016-19 closed)
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NO
CRITERION / INDICATOR CHECKLIST practices?
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR
PRINCIPLES 8: COMMITMENT TO CONTINUOUS IMPROVEMENT IN KEY AREAS OF ACTIVITY NO 8.1
8.1.1
CRITERION / INDICATOR CHECKLIST
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR
Growers and millers regularly monitor and review their activities, and develop and implement action plans that allow demonstrable continual improvement in key operations. (M) The action plan for continual improvement shall be implemented, based on a consideration of the main social and environmental impacts and opportunities of the grower/mill, and shall include a range of Indicators covered by these Principles and Criteria. As a minimum, these shall include, but are not necessarily be limited to: • Reduction in use of pesticides(Criterion 4.6); • Environmental impacts (Criteria 4.3, 5.1 and 5.2); • Waste reduction (Criterion 5.3); • Pollution and greenhouse gas (GHG) emissions (Criteria 5.6 and 7.8); • Social impacts (Criterion 6.1); • Optimising the yield of the supply base. Guidance: Growers should have a system to improve practices in line with new information and techniques, and a mechanism for disseminating this information throughout the workforce. For smallholders, there should be systematic guidance and training for continual improvement. For National Interpretation: National Interpretation will include specific minimum performance thresholds for key indicators (Criteria 4.2, 4.3, 4.4, and 4.5). Continual improvement plans have been raised as corrective actions plan from Field observation at mill and a. Is there an action plan for continual internal audit of ISPO, RSPO and OHS. estates improvement? The most recent ISPO RSPO Internal Audit was performed on 11 – 14 April 2016 Continual improvement project b. Describe the main components of the plan. and OHS Internal Audit was performed on 4 – 8 April 2016 for mill and all estate. 2015 Some findings have been closed and the other was on progress. Internal audit ISPO/RSPO c. Has the action plan been implemented? report d. Provide examples of continual Several continual improvement programme has been developed, such as: OHS internal audit report improvements that have been Reduction in use of pesticides implemented. o Reduction of paraquat use Environmental impacts: e. Are history records available to develop the
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YES
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NO
CRITERION / INDICATOR CHECKLIST action plan? f. Are records of implementation of the action plan available? g. Does the action plan include strategies for: • Reduction in use of pesticides (Criterion 4.6)? Is IPM widely implemented? • Environmental impacts (Criteria 4.3, 5.1 and 5.2)? • Waste reduction (Criterion 5.3)? • Pollution and greenhouse gas (GHG) emissions (Criteria 5.6 and 7.8)? • Social impacts (Criterion 6.1)? • Optimising the yield of the supply base?
OBSERVATIONS & OBJECTIVE EVIDENCE
COMPLIANCE (YES/NO)
SUMMARY OF FINDINGS FOR EACH INDICATOR
o Use composting method to reduce use of chemical fertilizer Waste reduction: o Reuse used water from pestiside container cleaning Pollution and GHG emission o Use of fibre and shells for boiler fuel Social: o Monitoring and managing the positive and negative impact from social impact assessment (SIA) o Improve and implementation the CSR program regularly o Review social impact assessment every two years to improve the social relationship with stakeholders and affected parties. Optimising the yield of the supply base: o Composting
h. Do growers have a system to improve practices in line with new information and techniques, and a mechanism for disseminating this information throughout the workforce?
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3.3.2
Mill Supply Chain Requirements The FFB source is four (4) organisation owned by PT. PP London Sumatera Indonesia Tbk. and no FFB from the third party. Therefore the Model selected is Identity Preserved and RSPO Supply Chain Module D was used as audit criteria. The detail of FFB processed in Dolok Mill is described in Table 7, Table 8 and Table 9 presented in this report.
3.3.2.1 Supply Chain Certification Standard PART A COMPANY DETAIL Company Name (covered by certification): PT. PP London Sumatera Indonesia Tbk. Dolok Mill and Its Supply Base
RSPO member name: PT PP London Sumatra Indonesia Tbk
RSPO member number: 1-0015-04-000-00
RSPO IT Platform Registration number: RSPO_PO1000002227 Site Address: Desa Perkebunan Dolok, Kecamatan Limapuluh, Kabupaten Batubara, North Sumatera IDN Management Representative: Muhammad Waras Site type: Palm Oil Mill Site capacity: 45 MT FFB/hour Certified palm product sold: Nil Certified palm product used: 119,227 MT App/Cert No: FMS40044
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SAI Global Auditor/Team: Ria Gloria
Audit Date: 26 May 2016
Activity/Audit No: WI-835265
Audit objectives To verify the volume of certified and uncertified FFB entering the mill and volume sales of RSPO certified producers, and the implementation of any processing controls (for example, if identity preserved is used)
Supply Chain Model:
Module D - CPO Mills (IP) Identity preserved
Pertinent record period:
August 2015 – April 2016
Estimated tonnage of certified palm product produced:
29,625 MT CPO and 7,913 MT PK
Estimated of tonnage of non certified palm product produced
-
String description:
Palm Oil Mill
Outsource activity(ies) (if any):
NA
Independent third party(ies) performing outsource activity(ies): name, address and Capability
NA
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PART B SUPPLY CHAIN CERTIFICATION STANDARD
Requirements
Audit Findings / Objective Evidence
STATUS ( NC / AOC / C )
CPO MILLS (IP) IDENTITY PRESERVED SUPPLY CHAIN MODELS – MODULAR REQUIREMENTS D.1 Definition A mill is deemed to be Identity Preserved (IP) if the FFB used by the mill are sourced from its own supply base certified to the RSPO Principles and Criteria (RSPO P&C). Certification for CPO mills is necessary to verify the volumes and sources of certified FFB entering the mill, the implementation of any processing controls (for example, if physical separation is used), and volume sales of RSPO certified products. A mill may be taking delivery of FFB from uncertified growers, in addition to those from its own certified land base. If a mill processes certified and uncertified FFB without physically separating the material then only Module E is applicable. D.2 Explanation D.2.1. The estimated tonnage of CPO and PK products that could potentially be produced by the certified mill must be recorded by the certification body (CB) in the public summary of the P&C certification report. This figure represents the total volume of certified palm oil product (CPO and PK) that the certified mill is allowed to deliver in a year. The actual tonnage produced shall then be recorded in each subsequent annual surveillance report. a. Has the estimated tonnage of CPO and PK products (that could potentially be produced by the certified mill) been recorded by the certification body (CB) in the public summary of the P&C certification report ?
Doc ID: 3843 / Issue Date May, 2014
The estimated tonnage of CPO and PK products has been recorded by the certification body (CB) in the public summary of the P&C certification report, e.g.:
C
Certification audit: 2014 Estimated CPO : 48,527 MT Estimated PK : 11,841 MT WORK ITEM: © SAI Global Limited Copyright 2008 - ABN 67 050 611 642
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STATUS ( NC / AOC / C )
ASA1: Estimated CPO : 39,970 MT Estimated PK : 10,033 MT b. Does the figure represent the total volume of certified palm oil product (CPO and PK) that the certified mill is allowed to deliver in a year ?
Yes, the figure does represent the total volume of certified palm oil product (CPO and PK) that the certified mill allowed to deliver in a year. The actual tonnage produced has been recorded in each subsequent annual surveillance report, i.e:
c. Does the actual tonnage produced have to then be recorded in each subsequent annual surveillance report ?
ASA1 2016: Actual CPO : 29,625 MT Actual PK : 7,913 MT
D.2.2. The mill must also meet all registration and reporting requirements for the appropriate supply chain through the RSPO supply chain managing organization (RSPO IT platform or book and claim). a. The mill must also meet all registration requirements for the appropriate supply chain through the RSPO supply chain managing organization (RSPO IT platform or book and claim)? b. The mill must also meet all reporting requirements for the appropriate supply chain Doc ID: 3843 / Issue Date May, 2014
The Mill has been registered in RSPO IT platform with register number RSPO_PO1000002227
C
Major Non-conformance 2016-20:
C
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Requirements through the RSPO supply chain managing organization (RSPO IT platform or book and claim)?
Audit Findings / Objective Evidence The mill was not met one of reporting requirements for the appropriate supply chain through the RSPO supply chain managing organization (RSPO IT platform or book and claim). The mill sold their certificate through GreenPalm; however the mill has not reported their transaction or removes the stock in RSPO IT Platform.
STATUS ( NC / AOC / C ) (Major NCR 201620 closed)
D.3 Documented Procedure
D.3.1. The site shall have written procedures and/or work instructions to ensure the implementation of all the elements specified in these requirements. This shall include at minimum the following: a) Complete and up to date procedures covering the implementation of all the elements in these requirements; b) The role of the person having overall responsibility for and authority over the implementation of these requirements and compliance with all applicable requirements. This person shall be able to demonstrate awareness of the site’s procedures for the implementation of this standard. a. Does the site have written procedures and/or work instructions in place to ensure the implementation of all elements specified in these requirements ?
Doc ID: 3843 / Issue Date May, 2014
The site has written procedure CSPO Supply Chain (EMS-P17) dated 10 April 2014.
C (Major NCR 201621 closed)
Major NCR 2016-21: The Mill has written procedure CSPO Supply Chain (EMS-P17) dated 10 April 2014, however the procedure did not mentioned the supply chain model used by the site. Although the management has published memorandum regarding supply chain model in each mill. Moreover the procedure does not completely covering the implementation of all elements in RSPO supply chain requirements, e.g. RSPO IT Platform (eTrace). WORK ITEM: © SAI Global Limited Copyright 2008 - ABN 67 050 611 642
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b. Are procedures / work instructions completely covering the implementation of all the elements in these requirements?
STATUS ( NC / AOC / C )
The person and mill staffs was unable to demonstrated awareness of the RSPO Supply Chain implementation as he has not trained yet regarding RSPO supply chain certification requirement.
The site has written procedure CSPO Supply Chain (EMS-P17) dated 10 April 2014.
C (Major NCR 201621 closed)
Major NCR 2016-21: The Mill has written procedure CSPO Supply Chain (EMS-P17) dated 10 April 2014, however the procedure did not mentioned the supply chain model used by the site. Although the management has published memorandum regarding supply chain model in each mill. Moreover the procedure does not completely covering the implementation of all elements in RSPO supply chain requirements, e.g. RSPO IT Platform (eTrace). The person and mill staffs was unable to demonstrated awareness of the RSPO Supply Chain implementation as he has not trained yet regarding RSPO supply chain certification requirement. c. Have the site had the role of the person having overall responsibility for and authority over the implementation of these requirements and compliance with all applicable requirements ?
Top Management has assigned personnel who having overall responsibility for and authority over the implementation of these requirements and compliance with all applicable requirements, who is Mr. Mugiyanto (as Sustainability Manager), Mr. Ilyas Supriyanto (as Sales Settlement Staff) and Padli Okmas (as Sustainability Staff) based on Memorandum #059/SUS/IME/05/2016 dated 23 May 2016.
C
d. Is the person able to demonstrate awareness of the site’s procedures for the implementation of
Major NCR 2016-21:
C
Doc ID: 3843 / Issue Date May, 2014
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this standard?
The Mill has written procedure CSPO Supply Chain (EMS-P17) dated 10 April 2014, however the procedure did not mentioned the supply chain model used by the site. Although the management has published memorandum regarding supply chain model in each mill. Moreover the procedure does not completely covering the implementation of all elements in RSPO supply chain requirements, e.g. RSPO IT Platform (eTrace). The person and mill staffs was unable to demonstrated awareness of the RSPO Supply Chain implementation as he has not trained yet regarding RSPO supply chain certification requirement.
STATUS ( NC / AOC / C ) (Major NCR 201621 closed)
D.3.2. The site shall have documented procedures for receiving and processing certified and non-certified FFBs. a. Has the site had documented procedures for receiving certified FFBs ?
Documented procedure for receiving certified FFBs is described in SOP Loading Ramp and FFB Sorting (POMWI/02).
C
b. Has the site had documented procedures for receiving non-certified FFBs?
Documented procedure for receiving non-certified FFBs is described in SOP Loading Ramp and FFB Sorting (POMWI/02).
C
c. Has the site had documented procedures for processing certified FFBs?
The organization has established documented procedure/work instruction to ensure the process of certified FFB, e.g.:
C
Doc ID: 3843 / Issue Date May, 2014
Weigh Bridge Procedure (POM-WI/01) Loading ramp and FFB Shortage Procedure (POM-WI/02) IK Sterilization station Procedure (POM-WI/03) Threshing Procedure (POM-WI/04) Pressing Procedure (POM-WI/05)
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d. Has the site had documented procedures for processing non-certified FFBs?
STATUS ( NC / AOC / C )
Clarification Procedure (POM-WI/06) Depericarping Procedure (POM-WI/07) Kernel Recovery Procedure (POM-WI/08) Boiler Procedure (POM-WI/09) Power Generation Procedure (POM-WI/10) Water Treatment Procedure (POM-WI/11) Dispatch COP and Kernel Procedure (POM-WI/17)
The site implement supply chain certification model IP therefore there is no processing of non-certified FFB.
NA
D.4 Purchasing and Goods In
D.4.1. The site shall verify and document the tonnage and sources of certified and the tonnage of non-certified FFBs received.
a. Is the site going to verify and document the tonnage of certified FFBs received ?
b. Is the site going to verify and document the sources of certified FFBs received ? Doc ID: 3843 / Issue Date May, 2014
FFB receiving was traceable to the supply base unit. During weighing on weighbridge the FFB sources is identified; whether received from own estate (block number and division). The site only receive FFB from own estate and will not receive FFB from other source. Weighing slip and receiving report issued clearly stated the weight off FFB received and its source. The documented Production Report has recapitulated FFB received from Dolok, Bah Lias, Bah Bulian and Si Bulan Estate. It was verified that the tonnage of FFB received were verified and documented.
C
FFB receiving was traceable to the supply base unit. During weighing on weighbridge the FFB sources is identified; whether
C
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STATUS ( NC / AOC / C )
received from own estate (block number and division) or from other source. The site only receive FFB from own estate and will not receive FFB from other source. Weighing slip and receiving report issued clearly stated the weight off FFB received and its source. The documented Production Report has recapitulated FFB received from Dolok, Bah Lias, Bah Bulian and Si Bulan Estate. It was verified that the tonnage of FFB received were verified and documented. c. Is the site going to verify and document the tonnage of non-certified FFBs received ?
The site implement supply chain certification model IP therefore there is no receiving of non-certified FFB.
NA
D.4.2. The site shall inform the CB immediately if there is a projected overproduction of certified tonnage. a. Is the site going to inform the CB immediately if Procedure CSPO Supply Chain (EMS-P17) dated 10 April there is a projected overproduction of certified 2014 chapter 3.20 has described mechanism to inform the CB tonnage ? immediately if there is a projected overproduction of certified tonnage.
C
D.5 Records Keeping
D.5.1. The site shall record and balance all receipts of RSPO certified FFB and deliveries of RSPO certified CPO and PK on a three-monthly basis. a. Is the site going to record and balance all receipts of RSPO certified FFB on a three-monthly basis ?
The mill has records and balanced all receipts of RSPO certified FFB in daily basis, recap it in monthly basis and summarized it in three-monthly basis.
C
b. Is the site going to record and balance all
The mill has records and balanced all receipts of RSPO
C
Doc ID: 3843 / Issue Date May, 2014
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Requirements deliveries of RSPO certified CPO and PK on a three-monthly basis ?
Audit Findings / Objective Evidence
STATUS ( NC / AOC / C )
certified FFB in daily basis, recap it in monthly basis and summarized it in three-monthly basis.
D.6 Processing
D.6.1. The site shall assure and verify through documented procedures and record keeping that the RSPO certified oil palm product is kept segregated from non-certified material including during transport and storage. a. Is the site going to assure and verify through documented procedures that the RSPO certified oil palm product is kept segregated from noncertified material including during transport and storage ?
The mill only processed FFB from the company’s own estate, Dolok Estate, Bah Lias Estate, Bah Bulian Estate and Si Bulan Estate. The Mill has three CPO storage tank and one Palm Kernel silo which is used only for Dolok Mill product. Transportation is performed by customer, the mill does not have any transportation unit to deliver oil palm product. Therefore, RSPO certified oil palm product is kept segregated from non-certified material until it handed over to the customer.
C
b. The site shall assure and verify through record keeping that the RSPO certified oil palm product is kept segregated from non-certified material including during transport and storage ?
Based on D.6.1.a, it was confirmed that the site has assured and verify through record keeping and implementation that RSPO certified oil palm product is kept segregated from noncertified material including during transport and storage.
C
D.6.2. The objective is for 100 % segregated material to be reached.
a. Is the objective for 100 % segregated material able to be reached ? Doc ID: 3843 / Issue Date May, 2014
The mill only processed FFB from the company’s own estate, Dolok Estate, Bah Lias Estate, Bah Bulian Estate and Si Bulan WORK ITEM: © SAI Global Limited Copyright 2008 - ABN 67 050 611 642
C
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STATUS ( NC / AOC / C )
Estate, therefore 100 % of segregated material can be reached.
Doc ID: 3843 / Issue Date May, 2014
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3.3.2.2 Supply Chain Certification System
Supply Chain Certification System
STATUS (YES/NO)
Have the client made aware that until they receive written confirmation of their RSPO Supply Chain certification registration and its expiry date that they are not certified and cannot make any claims concerning registration?
Yes
Have the client made aware what actions they may have to complete before certification can proceed?
Yes
Have the client made aware of the findings of the audit team including any deficiencies which may result in a negative certification decisions or which may require further actions to be completed before a certification decision can be taken?
Yes
Have the client made aware that when there is a projected overproduction, SAI Global shall decide whether an interim visit is required?
Yes
Have detail records been compiled of the closing meeting including:
Yes
a list of the participants in the meeting
records of certified FFB received on monthly basis
records of CSPO and certified PK produced
records of CSPO and certified PK sold (under GreenPalm and UTZ system) to each buyer
Have the client made aware that the findings of the audit team are tentative pending review and decision making by the duly designated representatives of the certification body?
Doc ID: 3843 / Issue Date May, 2014
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Yes
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3.4
Recommendation
The recommendation from this audit is approval as a producer of RSPO Certified Sustainable Palm Oil and Palm Kernel, Model: Identity Preserve. Audit recommendations are always subject to ratification by RSPO. This report was prepared by: Ria Gloria, Daniel Sitompul, Mujinius Jalaraya and Fitria Rahmayanti
3.5
Environmental and social risk for this scope of certification for planning of the surveillance audit
Dolok Mill Environmental risk: compliance with regulations, hazardous waste management, RKL RPL reporting Social risk: compliance with regulations OHS: prevention of hazard and risk, compliance with regulations Bah Lias Estate, Dolok Estate and Si Bulan Estate Environmental risk: compliance with regulations, hazardous waste management, RKL RPL reporting Social risk: compliance with regulations OHS: prevention of hazard and risk, compliance with regulations
Doc ID: 3843 / Issue Date May, 2014
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3.6
Acknowledgement of Internal Responsibility and Formal Sign-off of Assessment Findings
Please sign below to acknowledge receipt of the assessment visit described in this report and confirm the acceptance of the assessment report contents including assessment findings.
Date 03 October 2016 Signed for and on behalf of PT. SAI Global Indonesia
Ms. Inge Triwulandari Technical Manager Date 03 October 2016
Doc ID: 3843 / Issue Date May, 2014
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Appendix A – Audit Record
Date
Auditor
23.05.2016
Audit meetings plus functions/ processes/ areas/ *shifts audited:
# Shifts*
Times* From - To
Day 1 All
Travelling Jakarta – Kualanamu
All
Travelling Kualanamu – Si Bulan Estate
GA180
Si Bulan Estate Opening meeting
Ria, Eko
Daniel
Muji
Doc ID: 3843 / Issue Date May, 2014
Site visit and document review: RSPO Criteria: 2.2.1 and 2.2.2 Criteria: 4.1.1, 4.1.2, 4.1.3 Criteria: 4.2. 4.3, 4.5 all indicators Criteria: 4.6.1, 4.6.2, 4.6.3, 4.6.4, 4.6.5, 4.6.7, 4.6.8, 4.6.9 Criterion: 7.3 if applicable Criterion: 8.1 Nursery Kunjungan lapangan dan review dokumen: ISPO Kriteria: 1.1, 1.2, 1.3, 1.4, semua indicator, 1.8.1 Kriteria: Kriteria 2.1.1, 2.1.3, 2.1.4, 2.1.5, 2.1.6, 2.1.7 (tanpa 2.1.7.2), 2.1.8, 2.2.1 Kriteria 7 Site visit and document review: RSPO Criteria: 2.1 all indicators for OHS aspect Criterion: 4.6.11 Criteria: 4.7 all indicators Criterion: 4.8 all indicators Criterion: 6.10 Criterion: 8.1 Kunjungan lapangan dan review dokumen: ISPO Kriteria 1.6, 1.7 Kriteria 3.3 Kriteria 4.1, 4.2.5, 4.2.6 Kriteria 6.1 Kriteria 7 Site visit and document review: RSPO Criteria: 1.1; 1.2; 1.3 all indicators Criteria: 2.1.1 for social aspect and HCV Criteria: 2.2.3; 2.2.4; 2.2.5; 2.2.6; 2.3 all indicator Criterion: 4.4.2, 4.6.12 Criterion: 5.2 all indicators Criteria: 6.1, 6.2, 6.3, 6.4, 6.5, 6.6, 6.7, 6.8, 6.9, 6.11, 6.12, 6.13 Criterion: 8.1 Kunjungan lapangan dan review dokumen: ISPO © SAI Global Limited Copyright 2008 - ABN 67 050 611 642
10.00
10.30
10.30
10.30
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Date
Audit meetings plus functions/ processes/ areas/ *shifts audited:
Auditor
Fitri
All 24.05.2016
Kriteria 1.5, 1.9 Kriteria 3.4, 3.5, 3.7 Kriteria 4.2 (tanpa 4.2.5 dan 4.2.6), 4.3, 4.4, 4.5 Kriteria 5.1, 5.2 Kriteria 7 Interview with employees, labour union and committee gender Interview with Kepala Desa, Tokoh Masyarakat Site visit and document review: RSPO Criteria: 2.1 all indicators for environmental aspects Criterion: 4.4.1 Criterion: 4.6.6, 4.6.10 Criterion: 5.1, 5.3, 5.4, 5.5 and 5.6 all indicators Criterion: 8.1 Kunjungan lapangan dan review dokumen: ISPO Kriteria 2.1.2, 2.1.7.2 Kriteria 2.2.4, 2.2.5, 2.2.6, 2.2.7 Kriteria 3.1, 3.2, 3.6 Kriteria 7 Break
# Shifts*
Times* From - To
10.30
12.30
Day 2 All
Travelling to Bah Bulian
06.30
Bah Bulian Estate
Ria, Eko
Daniel
Site visit and document review: RSPO Criteria: 2.2.1 and 2.2.2 Criteria: 4.1.1, 4.1.2, 4.1.3 Criteria: 4.2. 4.3, 4.5 all indicators Criteria: 4.6.1, 4.6.2, 4.6.3, 4.6.4, 4.6.5, 4.6.7, 4.6.8, 4.6.9 Criterion: 7.3 if applicable Criterion: 8.1 Kunjungan lapangan dan review dokumen: ISPO Kriteria: 1.1, 1.2, 1.3, 1.4, semua indicator, 1.8.1 Kriteria: Kriteria 2.1.1, 2.1.3, 2.1.4, 2.1.5, 2.1.6, 2.1.7 (tanpa 2.1.7.2), 2.1.8, 2.2.1 Kriteria 7 Site visit and document review: RSPO Criteria: 2.1 all indicators for OHS aspect Criterion: 4.6.11 Criteria: 4.7 all indicators Criterion: 4.8 all indicators Criterion: 6.10 Criterion: 8.1
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09.00
09.00
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Date
Audit meetings plus functions/ processes/ areas/ *shifts audited:
Auditor
Muji
Fitri
All 25.05.2016
Kunjungan lapangan dan review dokumen: ISPO Kriteria 1.6, 1.7 Kriteria 3.3 Kriteria 4.1, 4.2.5, 4.2.6 Kriteria 6.1 Kriteria 7 Site visit and document review: RSPO Criteria: 1.1; 1.2; 1.3 all indicators Criteria: 2.1.1 for social aspect and HCV Criteria: 2.2.3; 2.2.4; 2.2.5; 2.2.6; 2.3 all indicator Criterion: 4.4.2, 4.6.12 Criterion: 5.2 all indicators Criteria: 6.1, 6.2, 6.3, 6.4, 6.5, 6.6, 6.7, 6.8, 6.9, 6.11, 6.12, 6.13 Criterion: 8.1 Kunjungan lapangan dan review dokumen: ISPO Kriteria 1.5, 1.9 Kriteria 3.4, 3.5, 3.7 Kriteria 4.2 (tanpa 4.2.5 dan 4.2.6), 4.3, 4.4, 4.5 Kriteria 5.1, 5.2 Kriteria 7 Interview with employees, labour union and committee gender Interview with Kepala Desa, Tokoh Masyarakat Site visit and document review: RSPO Criteria: 2.1 all indicators for environmental aspects Criterion: 4.4.1 Criterion: 4.6.6, 4.6.10 Criterion: 5.1, 5.3, 5.4, 5.5 and 5.6 all indicators Criterion: 8.1 Kunjungan lapangan dan review dokumen: ISPO Kriteria 2.1.2, 2.1.7.2 Kriteria 2.2.4, 2.2.5, 2.2.6, 2.2.7 Kriteria 3.1, 3.2, 3.6 Kriteria 7 Break
# Shifts*
Times* From - To
09.00
09.00
12.00
Day 3 Dolok Estate
Ria, Eko
Site visit: RSPO Criteria: 2.2.1 and 2.2.2 Criteria: 4.1.1, 4.1.2, 4.1.3 Criteria: 4.2. 4.3, 4.5 all indicators Criteria: 4.6.1, 4.6.2, 4.6.3, 4.6.4, 4.6.5, 4.6.7, 4.6.8, 4.6.9
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08.00
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Date
Audit meetings plus functions/ processes/ areas/ *shifts audited:
Auditor
Daniel
Muji
Fitri
Criterion: 7.3 if applicable Criterion: 8.1 Kunjungan lapangan: ISPO Kriteria: 1.1, 1.2, 1.3, 1.4, semua indicator, 1.8.1 Kriteria: Kriteria 2.1.1, 2.1.3, 2.1.4, 2.1.5, 2.1.6, 2.1.7 (tanpa 2.1.7.2), 2.1.8, 2.2.1 Kriteria 7 Site visit: RSPO Criteria: 2.1 all indicators for OHS aspect Criterion: 4.6.11 Criteria: 4.7 all indicators Criterion: 4.8 all indicators Criterion: 6.10 Criterion: 8.1 Kunjungan lapangan: ISPO Kriteria 1.6, 1.7 Kriteria 3.3 Kriteria 4.1, 4.2.5, 4.2.6 Kriteria 6.1 Kriteria 7 Site visit: RSPO Criteria: 1.1; 1.2; 1.3 all indicators Criteria: 2.1.1 for social aspect and HCV Criteria: 2.2.3; 2.2.4; 2.2.5; 2.2.6; 2.3 all indicator Criterion: 4.4.2, 4.6.12 Criterion: 5.2 all indicators Criteria: 6.1, 6.2, 6.3, 6.4, 6.5, 6.6, 6.7, 6.8, 6.9, 6.11, 6.12, 6.13 Criterion: 8.1 Kunjungan lapangan: ISPO Kriteria 1.5, 1.9 Kriteria 3.4, 3.5, 3.7 Kriteria 4.2 (tanpa 4.2.5 dan 4.2.6), 4.3, 4.4, 4.5 Kriteria 5.1, 5.2 Kriteria 7 Interview with employees, labour union and committee gender Interview with Kepala Desa, Tokoh Masyarakat Site visit: RSPO Criteria: 2.1 all indicators for environmental aspects Criterion: 4.4.1 Criterion: 4.6.6, 4.6.10 Criterion: 5.1, 5.3, 5.4, 5.5 and 5.6 all indicators Criterion: 8.1 Kunjungan lapangan: ISPO
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# Shifts*
Times* From - To
08.00
08.00
08.00
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Date
Audit meetings plus functions/ processes/ areas/ *shifts audited:
Auditor
# Shifts*
Times* From - To
Kriteria 2.1.2, 2.1.7.2 Kriteria 2.2.4, 2.2.5, 2.2.6, 2.2.7 Kriteria 3.1, 3.2, 3.6 Kriteria 7 All
Break
12.00
Dolok Mill
Ria
Daniel
Muji
Fitri
Site visit: RSPO Criteria: 4.1.1, 4.1.2, 4.1.3 Criterion: 8.1 Kunjungan lapangan: ISPO Kriteria: 1.8.2 Kriteria: 2.2.2, 2.2.3 Kriteria 7.1 Site visit: RSPO Criteria: 2.1 all indicators for OHS aspect Criteria: 4.7 all indicators Criterion: 4.8 all indicators Criterion: 8.1 Kunjungan lapangan ISPO Kriteria 1.6, 1.7 Kriteria 3.3 Kriteria 4.1, 4.2.5, 4.2.6 Kriteria 7 Site visit: RSPO Criteria: 1.1; 1.2; 1.3 all indicators Criteria: 2.1.1 for social aspect Criteria: 6.1, 6.2, 6.3, 6.4, 6.5, 6.6, 6.7, 6.8, 6.9, 6.11, 6.12, 6.13 Criterion: 8.1 Kunjungan lapangan: ISPO Kriteria 1.5, 1.9 Kriteria 3.4, 3.5, 3.7 Kriteria 4.2 (tanpa 4.2.5 dan 4.2.6), 4.3, 4.4, 4.5 Kriteria 5.1, 5.2 Kriteria 7 Document review and site visit: RSPO Criteria: 2.1 all indicators for environmental aspects Criterion: 4.4.1, 4.4.3, 4.4.4 Criterion: 5.1, 5.3, 5.4 and 5.6 all indicators Criterion: 8.1 Kaji dokumen dan kunjungan lapangan ISPO Kriteria 2.1.2, 2.1.7.2 Kriteria 2.2.4, 2.2.5, 2.2.6, 2.2.7 Kriteria 3.1, 3.2, 3.6 Kriteria 7
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14.00
14.00
14.00
14.00
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Date
Audit meetings plus functions/ processes/ areas/ *shifts audited:
Auditor
26.05.2016
# Shifts*
Times* From - To
Day 4 Dolok Estate and Dolok Mill
Ria, Eko
Daniel
Muji
Document review: RSPO SCC Partial certification requirements Criteria: 3.1. all indicators Criteria: 2.2.1 and 2.2.2 Criteria: 4.1.1, 4.1.2, 4.1.3 Criteria: 4.2. 4.3, 4.5 all indicators Criteria: 4.6.1, 4.6.2, 4.6.3, 4.6.4, 4.6.5, 4.6.7, 4.6.8, 4.6.9 Criterion: 7.3 if applicable Criterion: 8.1 Kajian dokumen: ISPO Kriteria: 1.1, 1.2, 1.3, 1.4, semua indicator, 1.8.1 Kriteria: Kriteria 2.1.1, 2.1.3, 2.1.4, 2.1.5, 2.1.6, 2.1.7 (tanpa 2.1.7.2), 2.1.8, 2.2.1 Kriteria 7 Document review: RSPO Criteria: 2.1 all indicators for OHS aspect Criterion: 4.6.11 Criteria: 4.7 all indicators Criterion: 4.8 all indicators Criterion: 6.10 Criterion: 8.1 Kajian dokumen: ISPO Kriteria 1.6, 1.7 Kriteria 3.3 Kriteria 4.1, 4.2.5, 4.2.6 Kriteria 6.1 Kriteria 7 Document review: RSPO Criteria: 1.1; 1.2; 1.3 all indicators Criteria: 2.1.1 for social aspect and HCV Criteria: 2.2.3; 2.2.4; 2.2.5; 2.2.6; 2.3 all indicator Criterion: 4.4.2, 4.6.12 Criterion: 5.2 all indicators Criteria: 6.1, 6.2, 6.3, 6.4, 6.5, 6.6, 6.7, 6.8, 6.9, 6.11, 6.12, 6.13 Criterion: 8.1 Kajian dokumen: ISPO Kriteria 1.5, 1.9 Kriteria 3.4, 3.5, 3.7 Kriteria 4.2 (tanpa 4.2.5 dan 4.2.6), 4.3, 4.4, 4.5 Kriteria 5.1, 5.2 Kriteria 7
QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
© SAI Global Indonesia Copyright 2009
08.00
08.00
Page 182 of 230
Audit Report
Date
Audit meetings plus functions/ processes/ areas/ *shifts audited:
Auditor
Fitri
27.05.2016
Document review: RSPO Criteria: 2.1 all indicators for environmental aspects Criterion: 4.4.1, 4.4.3, 4.4.4 Criterion: 4.6.6, 4.6.10 Criterion: 5.1, 5.3, 5.4, 5.5 and 5.6 all indicators Criterion: 8.1 Kajian dokumen: ISPO Kriteria 2.1.2, 2.1.7.2 Kriteria 2.2.4, 2.2.5, 2.2.6, 2.2.7 Kriteria 3.1, 3.2, 3.6 Kriteria 7
# Shifts*
Times* From - To
08.00
Day 5 Dolok Estate and Dolok Mill All
Audit continue
08.00
All
Auditor discussion
11.00
All
Break
12.00
All
Closing meeting
14.00
All
Travelling to Medan
15.30
28.05.2016
Day 6 All
Travelling Medan – Jakarta
QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
© SAI Global Indonesia Copyright 2009
GA183
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Audit Report
Appendix “B” – Previous Nonconformities and Opportunity for Improvement Summary
RSPO Principe and Criteria Major Non-conformance No
RSPO Indicator
1
2.1 indicator major 1
2
4.4 indicator major 1
3
4.6 indicator major 3
Details
Not all operators have obtained Dump Truck K3 licenses. This is not in accordance with Permenakertrans No.. 09/2010 on article 5, 11, 12, 13 (Bah Lias). Certificates of competence K3 electrical , e.g: Bahri Fadly can not be shown for the electrician. This is not in accordance witht Decree of the Director General of Industrial Relations and Labour Inspection No.Kep.311/BW/2002 and PUIL 2000 (Bah Lias) There is no clear boundary between the plantation area with Manahul riparian zone as HCV area at Division I Pondok Tengah (Bah Lias) Sprayer calibration was not recorded properly, to ensure the pesticide are given at the right doses per hectare, this is not in accordance with OP.5.1.1 Spraying Conventions and Calibration of Equipment, (Bah Lias). Certificate for workers who handle restricted pesticides such as paraquat were.not available, This is not in accordance with Kepmentan 949-1998 Article 5.(Dolok). The use of the hazardous symbol on the chemical warehouse does not conform PerMenLH 03 in 2008, for example symbol flammable, toxic, harmful and irritative (Bah
Doc ID: 3843 / Issue Date May, 2014
Correction
Root Cause
5th surveillance audit Complete SIO for all heavy Register of data of operator equipment and dump truck competence and its expire operator date has not been properly Complete competence certificate monitored for electricity OHS expert for welding operator
Corrective Action
Status
Verification during ASA1
Identify training needs for all related employees
Closed
Closed
Repair boundary of HCV
Lack of understanding regarind boundary of HCV
Disseminate boundary HCV to all employees
Closed
Closed
Closed
Reccurrence NCR 2014-07
Complete recording of sprayer calibration. Disseminate regarding restricted pesticide management and handling according with regulation. Complete chemical warehouse with symbol as required by regulation
Calibration record in mador book was not properly documented Lack of understanding regarding significance of restricted pesticed. Lack of understanding from warehouse operator
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Disseminate regarding restricted pesticide management and record the result of nozzle calibration Assign certified spraying operator group Disseminate using of hazard symbol to warehouse operator
Page 184 of 230
Audit Report No
RSPO Indicator
4
4.8 indicator major 1, 2
5
5.2 indicator major 2
6
5.3 indicator major 2
7
6.5 indicator major 2
1
2.1 indicator major 1
Details Lias). Training programs in 2013 and personnel training records are not available.
Correction
Root Cause
Corrective Action
Dedicated personnil to handle environment and OHS administration in Estate/Mill has not been assigned. Lack of understanding of employee conducting monitoring
Assign dedicated personnil/environment clerk to handle environment and OHS document in Estate/Mill Identify HCV training needs for employee conducting monitoring
Closed
Closed
Reccurrence NCR 2014-11 and NCR 201412 Closed
Conduct training regarding spill handling to warehouse operator Store drum of used oil in temporary storage of hazardous waste
Lack of understanding of warehouse and temporary storage of hazardous waste operator
Identify training needs for warehouse and temporary storage of hazardous waste operator
Closed
Closed
Provide working contract for Ponirah and Samini
Ponirah and Samini was replacement workers and the application was still in the process
Issue internal memorandum regarding implementation of daily worker
Closed
Closed
Closed
Closed
Complete documentation of training program and realisation year 2013
Program management and monitoring of HCV only general, no periodically program (monthly, semester) available (Dolok). There are toxic chemical spills on the floor at chemical warehouse, the operator has not been trained to deal with chemical spills. (Bah Lias). The former waste oil packaging (drums) placed outside the hazardous warehouse (Dolok mill). There was no working contract agreement for Part Time workers e.g: Ponirah and Samini sprayer workers at Pondok Tengah. This is not in accordance with Kepmenakertrans. 100/2004 related to the provision of casual labor agreement in Article 12 (point c and d) (Bah Lias).
Conduct managing and monitoring of HCV program periodically
There was no evidence of compliance with several legal requirements. Bah Lias Estate
Bah Lias Estate
Bah Lias Estate
Bah Lias Estate
Complete surface water abstraction with permit as required by regulation. Complete hazard symbol in medical waste bins in clinic. Complete hazard symbol in jerrycan of diesel fuel as required by PP 74/2001. Overtime can be done if any overtime permit letter and approved by both partiers (worker and organization). Overtime can be done if any overtime permit letter and approved by both partiers (worker and organization). a. Establish the work agreement for all daily temporary upkeep
Status of permit has not been properly updated in list of permit. Change of medical waste bins was conducted without being completed with hazard symbol. Lack of hazard symbol application. Misconduct recorded of overtime administration. a.Agreement of daily temporary worker was not be equipped properly. b. Some of main activities were mistakenly conducted by daily temporary worker. c. Daily temporary harvester
Monitor expired date of permit through list of permit. Handle medical waste inline with regulation. Use jerrycans of diesel fuel and other hazardous material inline with regulation. Ensure that all jerrycan of diesel fuel has been completed with hazard symbol. KTU will ensure the overtime must be completed with overtime letter. a. Distribute the format standard of agreement of daily temporary worker to all estate. KTU has responsible
Status
Verification during ASA1
Stage-2
Permit of surface water abstraction has not been provided as required by PP 42/2008 Management of water natural resource. 2 Medical waste bins in polyclinic have not been completed with hazard symbol as required by Per.MenLH 14/2013. Jerrycan of diesel fuel sent to site from workshop has not been completed with label and hazard symbol as required by PP 74/2001. Overtime letter that shown preparedness of worker to conducting overtime was not available in according to Transmigration and
Doc ID: 3843 / Issue Date May, 2014
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Page 185 of 230
Audit Report No
RSPO Indicator
Details
Correction
Labour Ministry Decision of Indonesian No. KEP.102/MEN/VI/2004 about over time and pay of overtime. It was found noncompliance between working agreement with Indonesian Laws No. 13/2003 about Employment as well as against Transmigration and Labour Ministry Decision of Indonesian No. KEP.102/MEN/VI/2004 about over time and pay of overtime, among others: a. There was no temporary worker contract/agreement of upkeep (pruning, wedding, manuring, spraying, and other upkeep activities). b. Based on Mandor-Foreman of Harvester Division I per 22 April 2014 and worker data base per March-April 2014, there was permanent main job (harvesting) was conducted by temporary worker. c. It was observed there were four harvester Division I which has been work more than 20 days per month for 3 month ago. Based on worker data base, they here been work since April and May 2012. However, their status has been as a daily/temporary worker. Dolok Estate There was no temporary worker contract/agreement of upkeep, including pruning, wedding, manuring, spraying, and other upkeep activities (Indonesian Laws No. 13/2003 about Employment as well as against Transmigration and Labour Ministry Decision of Indonesian No. KEP.102/MEN/VI/2004 about over time and pay of overtime) There was no test of road grader,
worker (pruning, wedding, manuring, spraying, other upkeep activities), b. Promote daily temporary worker to be permanent worker. Daily temporary worker is not done main activities. c. Promote harvester which still temporary worker to be permanent worker.
Doc ID: 3843 / Issue Date May, 2014
Dolok Estate Establish the work agreement for all daily temporary upkeep worker, Conduct heavy equipment testing collaborates with accredited laboratory. Bah Lias and Dolok Estate Adjust the procedure as required in Keppres No.32/1990. Dolok Mill Promote worker of Clarification, Laboratorium, Loading Ramp to be permanent worker.
Root Cause of Division 1 is in the stage of filling as a permanent worker. Dolok Estate Agreement of daily temporary worker was not be equipped properly. Heavy equipment testing has not been yet implemented. Bah Lias and Dolok Estate There was a lack of proper interpretation of Permen PU No.63/1993 when arrangement of procedure. Dolok Mill Apponitment of daily temporary worker still on the assessment process. Bah Lias Estate, Dolok Estate and Dolok Mill Organization has done training to fire brigade however it has not appropriated with related regulation. (Kepmenaker No 186/1999).
Bah Lias Estate, Dolok Estate and Dolok Mill Conduct fire prevention thechnic level I and II training.
Corrective Action
Status
Verification during ASA1
to ensure daily temporary worker agreement has been established. b. Ensure the permanent main activities not done by daily temporary worker. c. Workers who were not selected are not employed Dolok Estate Distribute the format standard of agreement of daily temporary worker to all estate. KTU has responsible to ensure daily temporary worker agreement has been established. Ensure the equipment testing will conducted as required in usage permit. Bah Lias and Dolok Estate Communicate the procedure to PIC Sustainability. Dolok Mill KTU has responsible to monitor recruitment process of daily temporary worker has been appropriated with related procedure. Bah Lias Estate, Dolok Estate and Dolok Mill Identify training annually appropriate competence matrix.
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Page 186 of 230
Audit Report No
RSPO Indicator
Details
Correction
Root Cause
Corrective Action
Status
Verification during ASA1
backhoe loader dan traktor from Disnaker in 2010. Bah Lias and Dolok Estate Determination of riparian zone in the related procedure was noncompliance with President Decision No.32/1990 about environmental management. In the related procedure was described regarding a. Width of the river is 5-10 meters, than the riparian zone is 5 meters b. Width of the river is 10-25 meters, than the riparian zone is 15 meters c. Width of the river more than 25 meters, than the riparian zone is 25 meters 2
2.1 indicator major 2
There was no evidence of effort made to comply with change in several regulations
Bah Lias Estate, Dolok Estate and Dolok Mill
Bah Lias Estate, Dolok Estate and Dolok Mill
1.
1.
Bah Lias Estate, Dolok Estate and Dolok Mill
3
4.6 indicator major 1
Several regulations have not been updated, registered and evaluated their compliance, e.g. Permentan 98/Permentan/OT.140/9/2013, Per.MenLH 14/2013, Permenperind No 23/MIND/PER/4/2013
There was no evidence that only registered and permitted agrochemical used.
4
4.6 indicator major 3
Copy of valid permit has not been provided for SMART 486 AS (7 August 2013).
4.
1.
1.
1.
2.
Register agrochemical use dan complete the permit of agrochemical use. Improve SAP entry system.
2.
Bah Lias Estate
1.
Doc ID: 3843 / Issue Date May, 2014
3.
Conduct training of restricted pesticide.
Agrochemical used was base on BLRS (Bah Lias Research Station) recommendation. Mistaken in SAP system. Agrochemical used was Smart SL not SMART 486 AS.
Estate 1.
Limitation of training participants from BLRS (Bah Lias Research
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Closed
Closed
Closed
Closed
Closed
Distribute list of agrochemical registered and permitted to all Estates and related department including Core SAP.
Bah Lias Estate and Dolok Estate 1.
Closed
Identify new regulation. More active in environment and sustainability forum. Add personnel in Sustainability Department. Routinely updating related regulation.
Dolok Estate and Bah Lias Estate
Bah Lias Estate and Dolok Estate
Training regarding agrochemical
1. 2.
Dolok Estate and Bah Lias Estate
Not all spraying operator has obtained training regarding agrochemical use.
Up date against related regulation has been done through website, information during meeting with other organisation and dissemination however there were also regulations which was rarely communicated by government.
Dolok Estate and Bah Lias Estate
Dolok Estate and Bah Lias Estate
Update and revise related regulation for OSH and environment.
Bah Lias Estate, Dolok Estate and Dolok Mill
Conduct training of restricted pesticide by
Page 187 of 230
Audit Report No
RSPO Indicator
Details
Correction
Root Cause
use was only attended by head of assistant.
Corrective Action
Station).
5
4.6 indicator major 4
Training regarding agrochemical use was only attended by three spraying operators from 6 spraying operator in Division 02group leader and head of assistant.
Agrochemical waste has not been handled according to procedure Bah Lias Estate
Waste from agrochemical container cleaning activity has not been handled according to procedure EMS P14. Cleaning water was drained to absorption pit. There was no sedimentation pit.
Bah Lias Estate
Bah Lias dan Dolok Estate
Handle agrochemical container according to procedure EMS P14.
Procedure has not implemented well.
Bah Lias Estate and Dolok Estate
Dolok Estate
Provide sedimentation pit and absorption pit.
Dolok Estate
6
4.7 indicator major 1
7
4.8 indicator major 1
Waste from agrochemical container cleaning activity has not been handled according to procedure EMS P14. Cleaning water was not reused as dilution in the next application. Cleaning water was directly drained to sedimentation pit. There was no absorption pit. Bah Lias Estate
Bah Lias Estate
Bah Lias Estate
Bah Lias Estate
Complete PPEs sprayer.
Spraying operator in Division 02 blok 02112010 did not use apron and safety gogle their Personal Protective Equipment (PPE).
Spayer undicipline to use PPE.
Dolok POM
Dolok POM
Dolok POM
Doc ID: 3843 / Issue Date May, 2014
Reassign training program covered criterion of competency standard
Training program which has established was not covered criterion of competency standard. Training program has been provided however it did not consider training needs for each working.
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Closed
Closed
Closed
Closed
Closed
Monitor the PPE usage of worker.
Dolok POM Competence standard for all employess has not been provided therefore it was not ensured that training program was established according to employees’ competence.
Closed
Agrochemical handle according to procedure and the procedure is properly understood by personnel in charge. Check implementation of EMS P14 through monitoring and internal audit checklist and quarterly improvement program achievement.
Objective evidence:
Verification during ASA1
considering the suitability of spraying operator in each Estate.
Dolok Estate
Status
Ensure the implementation of training as required with competency standard Revise matrix of training needs based on function and job description.
Page 188 of 230
Audit Report No 8
9
RSPO Indicator 4.8 indicator major 2
5.1 indicator major 2
Details
Correction
Root Cause
Dolok POM
Dolok POM
Dolok POM
Dolok POM
Assign Krani Kantor to control document and record of training
Training record for several employees has not been provided, e.g. boiler operator, laboratory analys.
Distribute evidence of training to each unit. Conduct refresh and awareness training in appropriated competency standard.
11
12
5.2 indicator major 1
Training which has done was not documented properly. Some of training record was not distributed to Unit.
Dolok Mill
Dolok Mill
Dolok Mill
Dolok Mill
DPLH required monitoring fire hazard quarterly. However there was no monitoring result of fire hazard.
Monitor fire hazard as required by DPLH. Report potential and identification of fire hazard into DPLH.
10
Corrective Action
Bah Lias Estate and Dolok Estate
On August 2008, Organization has been conducted reground checking HCV area internally in Bah Lias and Dolok by Senior Conservation Staff. Report of reground checking HCV was only contained map of HCV potential. It was no described HCV identification analyses.
Monitoring of fire hazard was not identified by person in charge of DPLH report therefore monitoring of fire hazard was not reported. No fire hazard (LKHL: Laporan Kebakaran Hutan dan Lahan)
Bah Lias Estate and Dolok Estate
Dolok Mill
Dolok Mill
Dolok Mill
Dolok Mill
1.
1.
1.
5.3 indicator major 2
Bah Lias Estate
Bah Lias Estate
Doc ID: 3843 / Issue Date May, 2014
There was no evidence that contaminated rags and gloves were disposed as hazardous
Identify and evaluate environmental aspect of laboratory activities
Handle contaminated rags and gloves as hazardous waste.
Environmental aspect and impact has been identified and evaluated however it did not cover laboratory area due the laboratory activities only related to BLRS (Bah Lias Research Station) and QCTL(Quality Control Test and Laboratory).
Bah Lias Estate and Dolok Mill
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Closed
Closed
Closed
Closed
Closed
Closed
Update environmental aspect and impact periodically.
Bah Lias Estate and Dolok Mill Lack of understanding of waste handling and
Closed
Assign PIC of Sustainability which has responsibility for environmental management (including HCV) in each Unit.Distribute the HCV assessment report to Unit.
5.3 indicator major 1
Waste and pollutions sources from laboratory activities have not been identified and documented.
Closed
Develop report of DPLH implementation according to matrix of environmental monitoring.
Bah Lias Estate and Dolok Estate Reidentify HCV was not yet completed.
Closed
Verification during ASA1 Closed
Fill form of LKHL although there was no incident.
Bah Lias Estate and Dolok Estate Conduct reidentifies HCV in appropriated with related procedure.
Status
Desiminate regarding waste handling and
Page 189 of 230
Audit Report No
RSPO Indicator
Details
waste. Final domestic waste disposal has not been completed with fence as required by procedure.
Dolok Mill
13
5.6 indicator major 2
Measurement result of emission of FFB transportation vehicles was provided in Book of Periodical Vehicle Inspection (KIR). However not all KIR stated measurement result of emission, e.g. BK 8707 CI, BK 9450 CI, BK 8429 CN, BK 8867 CP, BK 8431 CN, BK 8870 CP, BK 9849 CQ, BK 7709 DO, BK 9024 CA and BK 8798 CI.
Root Cause
Contruct fence at the final landill
pollution potential by worker.
Corrective Action
Status
Verification during ASA1
potential of pollution to workers.
Dolok Mill
Boiler ash was not kept in determined area therefore boiler ash entered into open drain although based on measurement result quality of water from open drain was still inline with regulation. Moreover boiler ash was kept nearby fiber cyclone therefore boiler ash was blowed by air from fiber cyclone and polluted the air.
Bah Lias Estate
Correction
Store boiler ash at the designated area to prevent pollute into open drainage and environment.
Bah Lias Estate and Dolok Estate
Bah Lias Estate and Dolok Estate
Bah Lias Estate and Dolok Estate
Conduct measurement of vehicle emission to vehicles.
Measurement result of emission was not stated in KIR (Book of Periodical Vehicle Inspection).
Closed
Closed
Closed
Closed
Assign transport staff to manage transportation and its document completeness. Measurement of vehicle emission was included to budget
Dolok Estate Measurement result of emission of FFB transportation vehicles was provided in Book of Periodical Vehicle Inspection (KIR). However not all KIR stated measurement result of emission, e.g. BK 8706 CI. 14
6.1 indicator major 1
Bah Lias Estate Presentation of Environmental Evaluation-Penyajian Evaluasi Lingkungan (PEL) of Dolok Group 1993, No # RC. 220/699/B/IV/94 was not described clearly scope of study as well as the impact of mill and estate activities. Organization has been conducting social mapping on 11 October 2013
Doc ID: 3843 / Issue Date May, 2014
Bah Lias Estate and Dolok Estate Conduct analyses of social mapping and monitoring of social impact to identify social impact from estate and mill.
Bah Lias Estate and Dolok Estate Positive and negative impact was not yet analyses in social mapping.
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Bah Lias Estate and Dolok Estate Distribute SIA report to all estate and mill to ensure negative and positive impact would be monitor properly.
Page 190 of 230
Audit Report No
RSPO Indicator
Details
Correction
Root Cause
Corrective Action
Status
Verification during ASA1
covering 6 villages around estate (Village of Sugarang Bayu, Perdagangan III, Lias Baru, Bandar Jawa, and Desa Nagori Bandar Pulo) however its result was only used to arrange CSR program 2014. Dolok Estate Presentation of Environmental Evaluation-Penyajian Evaluasi Lingkungan (PEL) of Dolok Group 1993, No # RC. 220/699/B/IV/94 was not described clearly scope of study as well as the impact of mill and estate activities. Organization has been also arranged Environmental Management document- Dokument Pengelolaan Lingkungan Hidup (DPLH), No # 660/216/BLH/IX/2011). DPLH is a document review of PEL, however study location was not covered social impact of community around Division I including Village of Talun Saragih, Nanggar Bayu, Penombean and Kubuan. On the 21-22 October 2013, organization has been conducted social mapping covering 13 Village around estate, however its result was only used to arrange CSR program 2014. 15
6.2 indicator major 1 and 6.3 indicator major 1
Bah Lias Estate
Doc ID: 3843 / Issue Date May, 2014
Meeting with stakeholder has been conducted on 18 September 2013 attended by 26 stakeholder (Village head, head of district-Camat, , District police, staff of Village and community leader), however it was only discussed limited issue including OSH implementation, environment management, integrated pest management system, protection of HCV area
Bah Lias Estate and Dolok Estate Communicate and discuss the related procedure with related parties.
Bah Lias Estate and Dolok Estate Related procedure has been communicated to village head, however it was not recorded.
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Bah Lias Estate and Dolok Estate Ensure that the meeting with stakeholder conducted to discuss mechanism of communication is recorded so that if any chage against communication method, organization can be revises related procedure.
Closed
Closed
Page 191 of 230
Audit Report No
RSPO Indicator
Details
Correction
Root Cause
Corrective Action
Status
Verification during ASA1
potential and protected wildlife and CSR program. Dolok Estate Meeting with stakeholder has been conducted on 24 April 2011 attended by 25 stakeholder (Village head, head of district-Camat, , District police, staff of Village, Community leader, Local NGOTopan, Indonesian Corruption Watch and Media – PWI), however it was only discussed limited issue including company profile, legality, environment and OHS management, protection of HCV area potential and protected wildlife and CSR program. 16
Certification System clause 4.2.4
There was no evidence that uncertified management unit complied with partial certification requirements regarding no replacement of primary forest or any area identified as containing High Conservation Values (HCVs), land conflicts, labour disputes and legal noncompliance.
1.
Provide internal audit result as evident of fulfilling of partial certification requirements
Development of internal audit report for all unit managements has not been finished at the time of stage-2 RSPO audit conduct.
Conduct internal audit once a year to ensure that partial certification requirement is fulfilled.
Closed
Closed
Discuss internal audit result in Management Review Meeting and BOD Meeting to get solution from issued found during internal audit.
Minor Non-conformance No
1
RSPO Indicator
2.1 indicator minor 2
Details
The last record of Form Evaluation of SPO Regulation (EMS IA-C6) in 2011 and not updated (Bah Lias).
Doc ID: 3843 / Issue Date May, 2014
Correction
Root Cause
5th surveillance audit Update form of evaluation of Last update of regulation has regulation (EMS IA-C6) not been delivered to Estate Manager
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Corrective Action
Include agenda of dissemination of form and EMS procedure in every sustainability workshop conducted annually
Status
Verification during certification audit
Closed
Closed
Page 192 of 230
Audit Report No
RSPO Indicator
2
4.5 indicator minor 2
3
4.6 indicator minor 2
4
4.7 indicator minor 4
5
4.7 indicator minor 6
6
4.7 indicator minor 8
7
5.2 indicator minor 2
8
5.3 indicator minor 1
Details
There is no early detection recording of rat attacks every month, but there was warehouse expenses of 50 kg @ 160 pieces klerat (active ingredient Brodifacum RMB) on 5 September 2013, and no further evaluation of klerat application. Tthis is not in accordance with OP.5.2.1 Overview of Pest and Disease Management During audit it was found that there were no records of specific medical check-up for. workers exposed to hazardous chemicals e.g: Ibu Samini (Bah Lias); Ibu Nilawati, Ibu Sumini, Ibu Suriani, Bapak Sadiran, Bapak Ucok (Dolok). Appointed personnels in P2K3 structure have not been completely received training related to SMK3, (Bah Lias) Mr. Sarwanto, Harvest Foreman at Division 2 who supervises 16 workers did not bring First aid kit, while there was not no first aid box available on site at kindergarten Cendana (Dolok); kindergarten Ulum (Bah Lias). Lost Time Accident records were not available on site. (Bah Lias). Lost Time Accident records were not available on site. (Bah Lias). Foreman that been appointed as HCV E.g Mr. Rudianto can not show evidence of competence of HCV training (Dolok). Hazardous waste stored at the polling station was not identified with hazardous waste characteristics associated symbol. This is not in accordance with the EMS-WI-8 page 2 and not in accordance with the
Doc ID: 3843 / Issue Date May, 2014
Correction
Root Cause
Corrective Action
Status
Justify using of klerat
Klerat was applied for trial area conducted by Balai Riset Lonsum
Area of trial did not included in audit scope
Closed
Verification during certification audit Closed
Complete MCU of employees who work with high risk, named samini, nilawati, sumini,suriani, sadiran & Ucok
Result of MCU has not been finished yet therefore has not been documented by Estate
Send result of MCU to Estate after the result issued
Closed
Closed
Conduct OHS training program especially for all P2K3 member
Several training program has been scheduled but not executed
Closed
closed
Complete all mandor and kindergarten with firs aid box.
Lack of understanding of mandor and clinic operator in distributing of fist aid equipment.
Issue circular letter to all Estate and Mill Manager that all P2K3 member has to train regarding OHS Involve mandor in routing activity of P2K3 monthly Make monitoring checklist of first aid box condition in each mandor, division and clinik
Closed
Closed
Complete data of lost time accident
Lack of understanding from operator regarding completeness of lost time accident
Dissemintation to responsible operator
Closed
Closed
Deliver training regarding HCV competence to Mt. Rudianto
HCV training needs has not been identified
Identify HCV training needs for all operator conducting montirong
Closed
Provide hazard symbol in each hazardous waste according to hazard characteristic in temporary storage of hazardous waste
Lack of understanding of temporary storage of hazardous waste operator
Identify training needs for temporary storage of hazardous waste operator Disseminate to all unit monthly
Closed
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Reccurrence NCR 2014-15
Page 193 of 230
Closed
Audit Report No
RSPO Indicator
9
6.1 indicator minor 1
10
6.2 indicator minor 2
11
6.5 indicator minor 2
Stage-2 1
4.2 indicator minor 2
Details
Decree of Kepala Bapedal No.5 tahun 1995 tentang Simbol dan Label B3 (Dolok mill & Estate No specific programs to handling social aspects with management methods and regular monitoring in the area with potential conflict. (All unit)
Records of local c o m m uni t y aspiration and responses or followup can not be shown, e.g: letter from police station to ask volley ball equipment. (Dolok) In the employment contract to third parties no clause outlining the contractor obligation to comply with the Labour Law 13/2003, such as the minimum age of workers, minimum wage, Social Security/ JAMSOSTEK, etc. (CV. Rimba Perkasa Abadi No. SPK No. 017/OAD/Cont- LC/BLE/III/2013 . (Bah Lias). and CV. Cipta Baja Raya No. SPK:05/EP/CONT/2013), . (Dolok) Rock Phosphat manuring has not been conducted according to recommendation of fertiliser application 2013 in several blocks. Dolok Estate
Doc ID: 3843 / Issue Date May, 2014
Correction
Root Cause
Corrective Action
Status
Develop “Rumah Pintar” as development center for social activity/CSR for each Estate Region Assign 2 tutor for “Rumah Pintar”to manage and report all activity in “Rumah Pintar” Include monitoring of social program in the job description of CDO Assign personnel to handle administration regarding CSR
Closed
Lack of understanding regarding requirement of regulation
Closed
Dolok Estate
Dolok Estate
Dolok Estate
Monitor social program/CSR. Assign dedicated personnel handling report of social program in each Estate and around Estate
Monitoring has not been fully conducted due limited personnel in unit who handling reporting social program/CSR
Complete form SPO01 (form of communication and information request) completed with response to all communication with community through letter or verbally Revise contract by adding requirement of regulation
Response to information request and communication was not documented
Conduct fertilising Rock Phosphate as required by recommendation.
Fertilising was not conducted due to fertilisers was not provided.
Based on Realization Report Fertilization Year 2013 Dolok Estate: Rock Phosphate fertilizer in block / field no. 99114011, 02114012 and 02114011, have not been conducted in accordance with
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Disseminate to PIC of contract development Include statement of comply with labour regulation in the contractual agreement with contractor.
Verification during certification audit
Reccurrence NCR 2014-20
Closed
Closed
Closed
Reccurrence NCR 2014-24
Closed
Since fertilising was not realised, in the next period fertilising is conducted soon as required by recommendation. Coordinate with procurement department to conduct purchase of fertiliser according to
Page 194 of 230
Audit Report No
RSPO Indicator
Details
Correction
Root Cause
the recommendation of fertilizer application in 2013. Based on Internal Memo from Bah Lias Research regarding Manuring 2013 on 31 August 2013: during implementation when fertiliser was not applied in 1st semester, and if fertiliser was provided, application is applied soon. And in implementation the dosage of fertiliser was combined with dosage of fertiliser 2nd semester. 2
4.4 indicator minor 1
Water management plan has not been consistently implemented.
Bah Lias Estate
Bah Lias Estate
3
4.5 indicator minor 1
Doc ID: 3843 / Issue Date May, 2014
There was no evidence that IPM training has been conducted.
Dolok Estate
Drum of used oil and used oil filter in workshop was located without containment and concrete. Spill of used oil potential pollutes to water source. There was a hole at secondary containment of diesel fuel tank in workshop. Diesel fuel spill potential pollutes to water sources.
Dolok Estate and Bah Lias Estate
Repair secondary containment around used oil store and clean contaminated soil. Repair oil trap
Complete used oil drum and used oil filter drum in workshop with pallet and secondary containment to prevent spill. Repair valve in secondary containment of diesel fuel.
Secondary containment of used oil store was not proper therefore used oil spill contaminated soil during use oil handling. Condition of oil trap was not proper and need repairing.
Verification during certification audit
Closed
Closed
Conduct monitoring to potential contamination and pollution. Using of all diesel fuel drum is completed with containment. Repair immediately when valve is broken.
Dolok Estate
Using of used oil drum used oil filter drum at the outside warhouse has not been completed with containment. Valve at secondary containment of diesel fuel in broken condition and has not been changed.
Dolok Estate and Bah Lias Estate
Dolok Estate and Bah Lias Estate
Dolok Estate and Bah Lias Estate
Conduct IPM training to IPM employees.
Status
defined recommendation. Conduct monthly meeting with BoD to discus obstacles, issues and progress in sustainability.
Bah Lias Estate
Bah Lias Estate Land around temporary storage of used oil was contaminated with used oil. Moreover secondary containment was not wide enough therefore the area was contaminated by used oil. Oil trap did not effectively catch oil from vehicle cleaning. Contaminated water was still drained to open drained. Dolok Estate
Corrective Action
IPM training was conducted only to mandor with asumption mandor will deliver the training material to IPM
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Closed
Closed
Conduct regular IPM training especially when personnel changes therefore the personnel
Page 195 of 230
Audit Report No
RSPO Indicator
Details
Correction
Root Cause
Corrective Action
employees. 4
5
6
Dolok Estate
Dolok Estate
Dolok Estate
Dolok Estate
5.2 indicator minor 2
Bah Lias Estate Organization has been appointed office officer as an officer to monitor any plans and activities of HCV management and monitoring program (Decision Letter of Estate Manager No # 87/BL/OP/IV/2014, date on 19 April 2014). These ”HCV Officers” have no particular background for HCV management. Evidence of competent/training record of HCV Officer was not available. Dolok Estate Organization has been appointed pest and disease supervisor-Mandor as an officer to monitor any plans and activities of HCV management and monitoring program (Decision Letter of Estate Manager No # No. # 275/DL/INT/XII/2012, date on 26 December 2012). These ”HCV Officers” have no particular background for HCV management. Evidence of competent/training record of HCV Officer was not available. Bah Lias Estate dan Dolok Estate Though the report of environment management and monitoring plan implementation has been arranged based on Presentation of
6.1 indicator minor 1
Doc ID: 3843 / Issue Date May, 2014
Conduct pregnant test to all women worker which work with pesticide.
Pregnant test for women worker which work with pesticide has not been done thoroughly and regularly.
Bah Lias Estate and Dolok Estate
Bah Lias Estate and Dolok Estate
Conduct HCV management training to HCV officer.
Bah Lias Estate and Dolok Estate Conduct social impact monitoring by third parties participation.
Competence understanding of HCV officer is still relying on the direct supervision of field staff.
Bah Lias Estate and Dolok Estate Social impact monitoring which done was available in social and environment
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Verification during certification audit
understand their working.
4.6 indicator minor 3
Based on list of worker per 21 April 2014, there was 28 totally women sprayer in the all Division. However, there was only several records (Division 2, there were 5 women sprayer and Division 1, there were 6 women sprayer) shown that there was no work with pesticides for pregnant women.
Status
Closed
Closed
Closed
Closed
Closed
Conduct monthly pregnant test
Estate
Closed
Conduct periodicly awareness training about management HCV.
Bah Lias Estate and Dolok Estate Optimizing Community Development Officer performance to conduct
Page 196 of 230
Audit Report No
RSPO Indicator
Details
Correction
Root Cause
Environmental Evaluation-Penyajian Evaluasi Lingkungan (PEL) and Environmental Management document- Dokument Pengelolaan Lingkungan Hidup (DPLH) however evidence of local community participation was not available. 7
8
6.3 indicator minor 1
6.5 indicator minor 1
aspect evaluation. Community Development officer only monitor social impact based on secondary data records of social contribution and record of complaint from stakeholder.
Bah Lias Estate During audit, it was found that the evidence of complaint handling from harvester Division II on 21 September 2013 about damage of septic tank installation was not available. Dolok Mill Though the document of housing repair evidence has available, however worker complaint was not recorded.
Bah Lias Estate and Dolok Mill
Bah Lias Estate There were 4 resource of clean water which distributed to worker housing, however evidence of water quality analyses was not available. Dolok Estate and Mill
Bah Lias Estate and Dolok Mill and Dolok Estate Conduct clean water testing as required related regulation collaborate with acrredited laboratory.
Corrective Action
Handling complaint from worker in appropriate with related mechanism.
There were 4 resource of clean water which distributed to worker housing, however evidence of water quality analyses was not available.
Bah Lias Estate and Dolok Mill
Bah Lias Estate and Dolok Mill and Dolok Estate Increase clean water testing budget to each mill and estate budget.
Closed
Closed
Bah Lias Estate Distribute standard agreement form and establish memo so that new contract agreement must covered the responsibile of contractor to comply against related labour regulation.
Closed
Closed
Closed
Closed
Bah Lias Estate Agreement with land clearing contractor was not specified that contractors abide by labour laws. For example: Agreement with CV Citra Mandiri, No # 008/INP/Lol/2014, date on 20 January 2014.
Bah Lias Estate Addendum contract by mentioning provisions the contractor must comply with the labor laws.
10
8.1 indicator minor 1
Dolok Mill
Dolok Mill
Dolok Mill
Dolok Mill
Doc ID: 3843 / Issue Date May, 2014
Closed
Bah Lias Estate and Dolok Mill and Dolok Estate There is a change of PIC for clean water monitoring from EngineringDepartment (2012) to HS Department (2013), than it was became responsibility Environment Department in 2014. It causes lost control of clean water monitoring budget. Bah Lias Estate Work agreement has mentioned that the contractor have responsible comply to OHS regulation, not yet specific to labour regulation
6.5 indicator minor 2
Corrective action taken
Closed
Communicate logook mechanism periodicly to all division.
9
There was no evidence that RSPO
Verification during certification audit
routinely social impact monitoring.
Bah Lias Estate and Dolok Mill Complaint from worker has been handling, however some of complaint handling were not recorded and documented.
Status
Corrective action taken
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Ensure that internal audit
Page 197 of 230
Audit Report No
RSPO Indicator
Details
internal audit was followed up.
Doc ID: 3843 / Issue Date May, 2014
Correction
evidence of internal audit has been provided however no evidence of verification of corrective action taken.
Root Cause
evidence of internal audit has been provided however no evidence of verification of corrective action taken.
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Corrective Action
Status
Verification during certification audit
findings has been followed up and well documented. Refreshment Training Internal Auditor
Page 198 of 230
Audit Report
Supply Chain Certification System No
SC Indicator
1
5.6, Module D 3rd paragraph, and D.7.1
Details
Correction
Root Cause
Corrective Action
Status
Verification during certification audit
Revise procedure of Supply Chain System CPO.
Closed
Closed
Stage -2 CPO and PK were sold under RSPO scheme in 2013 without being reported in RSPO IT System (eTrace). It was observed that based on sales invoices documents there was transaction of CPO and PK under RSPO scheme. However the transaction was not reported in RSPO IT System (eTrace).
Doc ID: 3843 / Issue Date May, 2014
1. 2.
Socialise sustainability Instruct the Management regarding Supply Chain Model B&C.
1. 2.
Lack of coordination regarding sales of CSPO. Supply Chain Model chosed by the organisation was B&C and sold the CSPO to Green Palm.
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1.
Page 199 of 230
Audit Report
Appendix “C” – Nonconformities and Opportunity for Improvement Summary RSPO Principe and Criteria
Organisation Name:
PT. PP London Sumatera
Date:
Audit team leader:
27/05/2016
Organisation’s acknowledgement of receipt of NCR
Location: Ria Gloria
Activity/Report ID:
Employee Name:
Mugiyanto
Section 1 N C R Nr .
Standard(s) & clause(s)
Details of non-conforming situation and Objective Evidence : Classification
Doc ID: 3843 / Issue Date May, 2014
Dolok Site, Sumatera Utara, Indonesia WI-835265
Section 2 SAI Verification (how and when)
Correction : (immediate fix)
Root Cause and Corrective Action :
License/Certificate No.:
FMS40044
Date NCR Accepted:
27/05/2016
Section 3
Section 4
SAI Global Response Review:
SAI Global Verification of Corrective Action for Effectiveness:
(action to prevent recurrence)
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Page 200 of 230
Audit Report Section 1 N C R Nr .
01
Standard(s) & clause(s)
RSPO Criterion 1.1. indicator minor 1
Details of non-conforming situation and Objective Evidence : Classification
Minor
Non-conforming situation: There is no evidence that the company has communicated to stakeholder the information which available to the public/stakeholders
Objective evidence: Kebun SiBulan, Bah Bulian, Dolok Estate and Dolok Mill No evidence that organisation has communicated to stakeholder related public information which available and defined in Communication procedure (EMS-P05), date on 10 August 2009
Section 2 SAI Verification (how and when)
Due Date: Next surveillanc e audit SAI Follow up Method: Onsite
Correction : (immediate fix)
Root Cause and Corrective Action :
Section 3
Section 4
SAI Global Response Review:
SAI Global Verification of Corrective Action for Effectiveness:
(action to prevent recurrence)
Conduct communication and dissemination with stakeholder regarding accessible information.
Root Cause:
Response:
Verification of Effectiveness:
Previous information was only published in annual Dissemination, however it is not periodically conducted and the evidence has not been properly documented.
Acceptable
Dissemination and communication regarding mechanism to deliver complaint to the organisation, procedure of complaint handling and external conflict and procedure of communication has been conducted to stakeholder (e.g. District Head, community, Policy Sectoral Head, Village Head, local NGO) in Dolok Estate, Bah Lias Estate, Bah Bulian Estate and Si Bulan Estate.
25/08/2016 Reviewer: Ria Gloria
Corrective Action: Other than dissemination and meetings, the company will conduct other forms of publications for company policy and communication procedure e.g. information boards and baliho that can be accessed easily by everyone.
Also communication was conducted through displaying complaint mechanism in strategic area, e.g. information board, village office, village meeting area. NCR 2016-01 closed Name Ria Gloria Date: 25/08/2016
Doc ID: 3843 / Issue Date May, 2014
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Page 201 of 230
Audit Report Section 1 N C R Nr .
02
Standard(s) & clause(s)
RSPO Criteria 2.1 indicator major 1
Details of non-conforming situation and Objective Evidence : Classification
Major
SAI Verification (how and when)
Non-conforming situation:
Due Date:
There was no documented evidence of compliance with several laws and regulations
27/07/2016
Objective evidence: 1. Register permit/number from several pesticides store and use have not been provided, e.g. Antracol, Sevin, Benlox 50WP, Decis 2.5EC, Santador 25EC, Lindomin 865AS, Starane 200EC, Starlon 480EC, Dithane M45 80WP, Smart 486 AS, Manuver 400 WC, Metaprima 20 WG. 2. Vibration parameter has not been tested at Dolok Mill as required by related regulation Permenaker 13/2011 3. Advance boiler that operated at Dolok mill has not been approved by local authority Disnaker. 4. Paramedic officer at Si Bulan and Bah Bulian Estate has not been trained for Hiperkes and Work Safety as required by related regulation.
Doc ID: 3843 / Issue Date May, 2014
Section 2
SAI Follow up Method: Onsite at Medan Office
Correction : (immediate fix)
Root Cause and Corrective Action :
Section 3
Section 4
SAI Global Response Review:
SAI Global Verification of Corrective Action for Effectiveness:
(action to prevent recurrence)
1.
2.
3.
4.
5.
6.
7.
8.
Coordinate with pesticide vendor and provide register number for the pesticides. Conduct vibration testing in Dolok Mill as required by regulation. Apply and arrange permit Boiler Advance from Disnaker Conduct Hiperkes and Work Safety training for paramedic officer. Perform test of lifting equipment as required by regulation and prior expired date. Register all daily workers (PHL) to BPJS and pay for medical and accident insurance. Send report of logbook of hazardous waste and environment report (RKL RPL) to BLHD. Coordinate with the related government regarding hazardous waste type permitted to be managed.
Root Cause:
Response:
Verification of Effectiveness:
1. Monitoring to register number of pesticides has not been properly conducted therefore some pesticides stocked in warehouse has not been completed with valid register number. 2. Vibration test has been scheduled annually, however it is not strictly required in AMDAL monitoring matrix 3. Issuance of Boiler Advance permit is still in process from government institution. 4. Hiperkes and Work Safety training was not conducted regularly, therefore it would affect the availability of trained officer if replacement (resignation) occurs. 5. Test of lifting equipment has been scheduled however the administration process takes too long to be finalised 6. Registration to BPJS is still in process for several employees.
Acceptable
1.
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25/08/2016 Reviewer:
The organisation has communicated with vendor to obtain the register number of pesticides and has documented. Register number of pesticides are:
Ria Gloria Pesticides
Register number
Expire date
Antracol
RI 0102011 97474
11.05.20 21
Sevin
RI. 0101011 97422
6.10.201 6
Benlox 50 WP
RI. 0102012 0052237
31.12.20 18
Decis 2.5EC
RI. 0101011 979387
4.01.201 8
Santador 25 EC
RI 0101012 0042138
2.02.202 0
Lindoimn 865AS
RI 0103011 989867
31.12.20 20
Starane 200EC
RI. 0103011 988854
15.04.20 19
Page 202 of 230
Audit Report Section 1 N C R Nr .
Standard(s) & clause(s)
Details of non-conforming situation and Objective Evidence : Classification
5.
6.
7.
8.
Doc ID: 3843 / Issue Date May, 2014
Section 2 SAI Verification (how and when)
Correction : (immediate fix)
Root Cause and Corrective Action :
Section 3
Section 4
SAI Global Response Review:
SAI Global Verification of Corrective Action for Effectiveness:
(action to prevent recurrence)
Lifting equipment at Si Bulan Estate has not been retested periodically where they must have been tested before 12 Januari 2016. All daily workers (PHL) at Si Bulan, Bah Bulian, Dolok Estate and Dolok Mill have not been covered by medical and accident insurance. (BPJS Kesehatan and BPJS Ketenagakerjaan). There was no evidence that logbook of hazardous waste and environment report (RKL RPL) was reported to BLH Serdang Bedagai Regent for Si Bulan Estate, BLH Simalungun Regent for Bah Lias estates, BLH Batubara Regent for Dolok Mill and estate for period 2015 and January – March 2016 as required by permit.
7.
Licence of hazardous waste temporary storage at Bah Bulian Estate No.188.45/102/Sekrt-2014 dated 6 February 2014 was not cover for ex chemical container, whether there was stored ex chemical container.
2.
8.
Previous PIC for report has been transferred to different unit, however the document handover to the new PIC has not been conducted properly Permit of temporary storage of hazardous waste has not covered waste identification inline with PP 101 2014. Permit was issued in February 2014 prior the regulation was issued.
Starlon 480EC
RI. 0103012 0072899
6.07.201 7
Dithane M-45 80WP
Stii in process
Smart 486 AS
RI. 0103011 9971313
25.09.20 18
Manuver 400WC
RI. 0101012 0041981
9.12.201 8
Metapri ma 20 WG
RI. 0103012 0031897
25.09.20 18
Corrective Action: 1.
Conduct periodic recapitulation of permit documentation of pesticides used and stocked. Inventory all parameters for environmental and safety monitoring required by AMDAL and government regulations, including all of its methods, frequency and specified test parameters to be monitored. Conduct regularly monitoring base on inventories of HSE requirement.
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2.
3.
Vibration has been tested in production area and office on 20 May 2016 by BLK3 Medan. Result was inline with regulation. Vibration test is scheduled twice a year. Arrangement of boiler permit has been approved by management on 26 May 2016. Payment was conducted by organisation on 23 August 2016 to CV Dian Sari Utama as PJK3 (Occupational Health and Safety Service Organisation). Permit for equipment in Dolok Mill including expired date has been documented in Fm. 1903.
Page 203 of 230
Audit Report Section 1 N C R Nr .
Standard(s) & clause(s)
Details of non-conforming situation and Objective Evidence : Classification
Section 2 SAI Verification (how and when)
Correction : (immediate fix)
Root Cause and Corrective Action :
Section 4
SAI Global Response Review:
SAI Global Verification of Corrective Action for Effectiveness:
(action to prevent recurrence)
3.
4.
5.
6.
7.
Doc ID: 3843 / Issue Date May, 2014
Section 3
Conduct the extension of permit for each equipment minimum 3 month prior to each permit expiration date. Conduct basic competency identification for all current and new paramedics annually and compose a new training program based on the identification Perform test of lifting equipment as per schedule. Register to BPJS immediately when there are new employees a. Construct and maintain a Balance score card system which includes environment reports parameters, with regular basis monitoring. b. Construct a centralized system for reporting (intranet) with reminder alerts for each reports, each unit will be responsible to submit its reports in time.
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4.
5.
6.
Letter form by PT Lanto Masa Anugerah (Occupational Health and Safety Service Organisation) on 22 August 2016 described that Hiperkes and Work Safety training to six paramedic officers (Dolok Estate (1), Bah Lias Estate (1), Sibulan Estate (2) and Bah Bulian Estate (2)) is conducted in September 2016. The organisation has developed training identification matrix. Request of test of lifting equipment was applied to General Service Department on 6 January 2016. Application was approved by management on 27 May 2016. Testing is conducted after payment and the payment has been conducted on 23 August 2016 to Disnaker. Permit for equipment in Dolok Mill including expired date has been documented in Fm. 1903. Daily workers (PHL) have been registered to BPJS for medical and accident insurance. Payment to BPJS was evident: a. on 19 August 2016 through BRI. b. on 15 August 2016 through BRI.
Page 204 of 230
Audit Report Section 1 N C R Nr .
Standard(s) & clause(s)
Details of non-conforming situation and Objective Evidence : Classification
Section 2 SAI Verification (how and when)
Correction : (immediate fix)
Root Cause and Corrective Action :
Section 3
Section 4
SAI Global Response Review:
SAI Global Verification of Corrective Action for Effectiveness:
(action to prevent recurrence)
8.
c. Implement one month policy regarding personnel transfers to ensure job description take over process were completed. Evaluate compliance with regulation regarding hazardous waste management periodically.
7.
Logbook of hazardous waste and RKL RPL report has been sent to government institution: a. Dolok POM on 19 August 2016 to BLH Kab. Batu Bara b. Dolok Estate on 6 June 2016 to BLH Kab Batu Bara c. Bah Lias Estate on 14 June 2016 to BLH Kab. Simalungun d. Si Bulan Estate on 18 July 2016 to BLH Kab. Serdang Bedagai On time reporting is one of targets stated in EMS F03 “Tujuan, sasaran dan program” in Estates and Mill.
8.
Doc ID: 3843 / Issue Date May, 2014
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Organisation sent letter to Badan Lingkungan Hidup Kab. Simalungun on 11 July 2016 #007/GSD/G/43/VII/2016 regarding Application on revision of hazardous waste storage permit in Bah Bulian Estate. Badan Lingkungan Hidup Kab. Simalungun replied that all types of hazardous wastes are still managed as required and apply extension of permit of hazardous waste soon. Permit is valid until 6 February 2017 and the organisation will extend the permit soon.
Page 205 of 230
Audit Report Section 1 N C R Nr .
Standard(s) & clause(s)
Details of non-conforming situation and Objective Evidence : Classification
Section 2 SAI Verification (how and when)
Correction : (immediate fix)
Root Cause and Corrective Action :
Section 3
Section 4
SAI Global Response Review:
SAI Global Verification of Corrective Action for Effectiveness:
(action to prevent recurrence)
NCR 2016-02 closed Name Ria Gloria Date: 25/08/2016 03
RSPO Criteria 2.2 indicator minor 2
Minor
Non-conforming situation:
Due Date:
Several legal pegs were not found.
Next surveillanc e audit
Construct two pegs for #5 and #7.
Root Cause:
Response:
Verification of Effectiveness:
Monitoring of legal pegs has not been properly conducted.
Acceptable
Pegs #5 and #7 has been constructed and provided in determined coordinate point.
25/08/2016 Corrective Action:
Objective evidence: Bah Bulian Estate: Based on legal pegs monitoring on 22 April 2016, two pegs were not found, #5 and #7 however there was corrective action to complete the legal pegs.
SAI Follow up Method: Onsite
Evaluate the result of legal pegs maintenance activity. When there are broken or lost pegs, it will be followed up soon.
Condition of pegs is monitored annually.
Reviewer: Ria Gloria
NCR 2016-03 closed Name Ria Gloria Date: 25/08/2016
Doc ID: 3843 / Issue Date May, 2014
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Page 206 of 230
Audit Report Section 1 N C R Nr .
04
Standard(s) & clause(s)
RSPO Criteria 4.3 indicator minor 3
Details of non-conforming situation and Objective Evidence : Classification
Minor
Section 2 SAI Verification (how and when)
Non-conforming situation:
Due Date:
Several program and realisation of road maintenance could not be shown.
Next surveillanc e audit
Objective evidence:
SAI Follow up Method: Onsite
Si Bulan Estate: Program and realisation of road maintenance 2015 and 2016 could not be shown
Correction : (immediate fix)
Root Cause and Corrective Action :
Section 3
Section 4
SAI Global Response Review:
SAI Global Verification of Corrective Action for Effectiveness:
(action to prevent recurrence)
Show program and realisation of road maintenance 2015 and 2016.
Root Cause:
Response:
Verification of Effectiveness:
Program and realisation of road maintenance has not been well documented.
Acceptable
Program and realisation of road maintenance 2015 and 2016 in Si Bulan Estate could be shown.
Corrective Action: Keep document of program and realisation of road maintenance properly.
25/08/2016 Reviewer: Ria Gloria
2015 Program: 29,248 m Actual: 29,248 m 2016 Program: 85,440 m Actual: 86,440 m Realisation of road maintenance was well recorded. NCR 2016 – 04 closed Name Ria Gloria Date: 25/08/2016
Doc ID: 3843 / Issue Date May, 2014
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Page 207 of 230
Audit Report Section 1 N C R Nr .
05
Standard(s) & clause(s)
RSPO Criteria 4.4 indicator minor 1
Details of non-conforming situation and Objective Evidence : Classification
Minor
Section 2 SAI Verification (how and when)
Non-conforming situation:
Due Date:
Water management plan was not consistency implemented
Next surveillanc e audit
Correction : (immediate fix)
Root Cause and Corrective Action :
Section 3
Section 4
SAI Global Response Review:
SAI Global Verification of Corrective Action for Effectiveness:
(action to prevent recurrence)
Repair flow meter and record water consumption.
Root Cause:
Response:
Verification of Effectiveness:
Request of flow meter repairing has been applied but has not been realised.
Acceptable
Flow meter has been repaired and installed in Bah Bulian Estate on 15 July 2016. Recording of water consumption was started to be recorded on 16 July 2016. Recording is conducted daily. Water management is one of objectives stated in EMS F03 “Tujuan, sasaran dan program” in Estates and Mill.
25/08/2016
Objective evidence: Flowmeter on Bah Bulian Estate was broke since January 2015 and there was no record of water consumption for period 2015 and 2016.
SAI Follow up Method: Onsite
Corrective Action: Ensure technical requirement of deep well water abstraction is fulfilled and implemented.
Reviewer: Ria Gloria
NCR 2016-05 closed Name Ria Gloria Date: 25/08/2016
Doc ID: 3843 / Issue Date May, 2014
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Page 208 of 230
Audit Report Section 1 N C R Nr .
06
Standard(s) & clause(s)
RSPO Criteria 4.6 indicator major 2
Details of non-conforming situation and Objective Evidence : Classification
Major
Section 2 SAI Verification (how and when)
Non-conforming situation:
Due Date:
Data of pesticide was not complete.
27/07/2016
Objective evidence: LD50 has not been provided for Antracol, Sevin, Benlox 50WP, Decis 2.5EC, Santador 25EC, Lindomin 865AS, Starane 200EC, Starlon 480EC, Dithane M-45 80WP, Smart 486 AS, Manuver 400 WC, Metaprima 20 WG.
SAI Follow up Method: Onsite at Medan Office
Correction : (immediate fix)
Root Cause and Corrective Action :
Section 3
Section 4
SAI Global Response Review:
SAI Global Verification of Corrective Action for Effectiveness:
(action to prevent recurrence)
Complete LD50 and calculate total active ingredient per ha.
Root Cause:
Response:
Verification of Effectiveness:
Data of LD50 and active ingredient has not been obtained from BLRS.
Acceptable
Data of LD50 of Antracol, Sevin, Benlox 50WP, Decis 2.5EC, Santador 25EC, Lindomin 865AS, Starane 200EC, Starlon 480EC, Dithane M-45 80WP, Smart 486 AS, Manuver 400 WC, Metaprima 20 WG has been provided.
Corrective Action: Evaluate the completeness of LD50 and active ingredient of pesticide used.
25/08/2016 Reviewer: Ria Gloria
Dolok Estate has calculated total active ingredient per ha of pesticides used. BLRS has list of pesticides brand, active ingredient, function, register number and LD50. The organisation has planning to include the list of SMIS Sustainability Management Information System. At least a year, list is reviewed.
Dolok Estate Total active ingredient per ha from pesticide use has not been provided.
NCR 2016-06 closed Name Ria Gloria Date: 25/08/2016
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Standard(s) & clause(s)
RSPO Criteria 4.6 indicator major 12
Details of non-conforming situation and Objective Evidence : Classification
Major
Section 2 SAI Verification (how and when)
Non-conforming situation:
Due Date:
The Company has not implemented consistently mechanism to ensure that no pregnant woman worker who worked as pesticide spray.
27/07/2016
Objective evidence: Bah Lias Estate and Dolok Estate
SAI Follow up Method: Onsite at Medan Office
Correction : (immediate fix)
Root Cause and Corrective Action :
Section 4
SAI Global Response Review:
SAI Global Verification of Corrective Action for Effectiveness:
(action to prevent recurrence)
Show evident of pregnancy check for sprayer worker.
Root Cause:
Response:
Verification of Effectiveness:
Pregnancy check has been conducted but not documented.
Acceptable
Pregnancy check of sprayer worker could be shown. Pregnancy check is one of committee gender program to ensure that pregnancy check is conducted.
Corrective Action: Evaluate the completeness of result of pregnancy check
25/08/2016 Reviewer: Ria Gloria
NCR 2016-07 closed Name Ria Gloria Date:
There was no pregnancy check in 2016. Last pregnancy checkup was done in 2014.
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Section 3
25/08/2016
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Standard(s) & clause(s)
RSPO Criteria 4.7 indicator major 1
Details of non-conforming situation and Objective Evidence : Classification
Major
Section 2 SAI Verification (how and when)
Non-conforming situation:
Due Date:
The organization has not assured that all the machineries and processes under their control are safe.
27/07/2016
Objective evidence: 1. Fire Fighting Tank at Si Bulan Estate has not been equipped by permanent pump. 2. Hydrant pump with diesel energy source has not been provided yet at Dolok mill.
SAI Follow up Method: Onsite at Medan Office
Correction : (immediate fix)
Root Cause and Corrective Action :
Section 3
Section 4
SAI Global Response Review:
SAI Global Verification of Corrective Action for Effectiveness:
(action to prevent recurrence)
1.
2.
Install permanent pump in fire fighting tank. Provide dedicated hydrant pump with diesel energy source.
Root Cause:
Response:
Verification of Effectiveness:
1. Technical requirement of emergency pump has not been identified. 2. Risk of energy usage from mill processes for hydrant pump utilisation has not been identified.
Acceptable
1.
Corrective Action: 1. Monitor completeness and suitability of emergency facility in Estates and Mill 2. Monitor availability proper emergency equipment.
25/08/2016 Reviewer: Ria Gloria
2.
Fire fighting tank in Si Bulan Estate has been completed with permanent pump on 18 June 2016. Request of hydrant pump with diesel energy source was applied on 20 November 2015 and has been approved. Supplier has visited the organisation to identify the needed on 12 August 2016. Installation of hydrant pump will be started after agreement with supplier is signed off.
NCR 2016-08 closed Name Ria Gloria Date: 25/08/2016
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Standard(s) & clause(s)
RSPO Criteria 4.7 indicator major 3
Details of non-conforming situation and Objective Evidence : Classification
Major
SAI Verification (how and when)
Non-conforming situation:
Due Date:
Several workers involved in the operation were not adequately trained in safe working practices and adequate and appropriate protective equipment were not available to all workers at the place of work to cover all potentially hazardous operations.
27/07/2016
Objective evidence 1. Mask used by workers with high risk hazardous operation such as operator at pesticide warehouse at all estates and mill, were not appropriate for the masks were only dust mask instead of chemical mask. 2. Safe Working Practices Training has not been conducted to the workers at Si Bulan and Bah Bulian Estate.
Doc ID: 3843 / Issue Date May, 2014
Section 2
SAI Follow up Method: Onsite at Medan Office
Correction : (immediate fix)
Root Cause and Corrective Action :
Section 3
Section 4
SAI Global Response Review:
SAI Global Verification of Corrective Action for Effectiveness:
(action to prevent recurrence)
1. Provide safety and health mask in accordance with work specification and regulation. 2. Conduct training of safe working practice.
Root Cause:
Response:
Verification of Effectiveness:
1. Mask provided has not been according to type of work specification. 2. Only dissemination of safe working practice not training conducted.
Acceptable
1.
25/08/2016 Reviewer: Ria Gloria
Corrective Action: 1. Evaluate the availability of PPE in accordance with specification, risk level and work risk. 2. Review training realisation in accordance with OHS program.
2.
Mask has been given to worker on 19 July in Bah Bulian Estate and 27 July 2016 in Dolok POM, Dolok Estate and Si Bulan Estate. Availability mask is monitored through stock card. Training regarding Safe Working Practice has been conducted on 13 July 2016 in Si Bulan and Bah Bulian Estate. Evaluation of training is conducted three months after training conduct.
NCR 2016-09 closed Name Ria Gloria Date: 25/08/2016
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Standard(s) & clause(s)
RSPO Criteria 5.2 indicator major 2
Details of non-conforming situation and Objective Evidence : Classification
Major
Section 2 SAI Verification (how and when)
Non-conforming situation:
Due Date:
Company has not performed monitoring of protected species which were identified (RTE species) and the HCV area by the measurable method.
27/07/2016
Objective evidence: SiBulan, Bah Bulian, Bah Lias dan Dolok Estate 1.
2.
There were no field monitoring data of protected species (animal and plants) and HCV patrol Boundary of riparian was not demarcation yet and marked Sibulan belum ada
SAI Follow up Method: Onsite at Medan Office
Correction : (immediate fix)
Root Cause and Corrective Action :
Section 3
Section 4
SAI Global Response Review:
SAI Global Verification of Corrective Action for Effectiveness:
(action to prevent recurrence)
1.
2.
Report field monitoring data of protected species (flora and fauna) and HCV patrol. Re-demarcate boundary of riparian.
Root Cause:
Response:
Verification of Effectiveness:
1. Monitoring result of protected species (flora and fauna) has not been well documented in report of implementation. 2. Previous demarcation was not maintained therefore some of them broken or loose.
Acceptable
1.
Corrective Action: Conduct and keep document of management and monitoring of protected species (flora and fauna) and HCV area properly.
25/08/2016 Reviewer: Ria Gloria
2.
Field monitoring data of protected species (flora and fauna) was attached in HCV Monitoring Report, in table 7 “Hasil pengamatan satwaliar di unit kebun” and table 8 “Hasil pengamatan flora di unit kebun”. Result of HCV patrol was attached in Chapter V point A and table 5. Boundary of riparian has been demarcated by using white or red paint at oil palm.
Monitoring of protected species (flora and fauna) and HCV area is conducted every six months. HCV monitoring was conducted on:
16 – 19 May 2016 in Bah Lias Estate 24 – 27 May 2016 in Bah Bulian Estate 9 – 12 May 2016 in Dolok Estate 30 May – 2 June 2016 in Si Bulan Estate
NCR 2016-10 closed Name Ria Gloria Date: 25/08/2016
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Standard(s) & clause(s)
RSPO Criteria 5.2 indicator minor 3
Details of non-conforming situation and Objective Evidence : Classification
Minor
Section 2 SAI Verification (how and when)
Non-conforming situation:
Due Date:
There is no programs that regularly performed by the company to all employees and community regarding the protection of protected species in plantation area.
Next surveillanc e audit
Objective evidence: Si Bulan, Bah Bulian, Bah Lias and Dolok Estate
SAI Follow up Method: Onsite
Correction : (immediate fix)
Root Cause and Corrective Action :
Section 3
Section 4
SAI Global Response Review:
SAI Global Verification of Corrective Action for Effectiveness:
(action to prevent recurrence)
Disseminate regarding biodiversity and its conservation to employees and communities.
Root Cause:
Response:
Verification of Effectiveness:
Dissemination has been conducted once at the first time of HCV was identified.
Acceptable
Dissemination to employees and communities regarding biodiversity and its conservation has been conducted:
Corrective Action: Program the dissemination of biodiversity and its conservation in EMS F03 “Tujuan, sasaran dan program”.
There was no evidence dissemination to employees and community regarding biodiversity and its conservation in Si Bulan Estate, Bah Bulian Estate, Bah Lias Estate dan Dolok Estate
25/08/2016 Reviewer: Ria Gloria
Dolok Estate on 23 June 2016 Bah Lias Estate on 7 June 2016 Bah Bulian Estate on 18 July 2016 Si Bulan Estate on 14 July 2016
Dissemination of biodiversity and its conservation is one of the targets in EMS F03 “Tujuan, sasaran dan program” in Estates. NCR 2016-11 closed Name Ria Gloria Date: 25/08/2016
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Standard(s) & clause(s)
RSPO Criteria 5.2 indicator minor 4
Details of non-conforming situation and Objective Evidence : Classification
Minor
Section 2 SAI Verification (how and when)
Non-conforming situation:
Due Date:
The results of the implementation of HCV management and monitoring has not given the feedback on next program management and monitoring of HCV
Next surveillanc e audit
Objective evidence: Si Bulan, Bah Bulian, Bah Lias and Dolok Estate There was no feedback defined in HCV management and monitoring report to the plan
SAI Follow up Method: Onsite
Correction : (immediate fix)
Root Cause and Corrective Action :
Section 3
Section 4
SAI Global Response Review:
SAI Global Verification of Corrective Action for Effectiveness:
(action to prevent recurrence)
Record the Feedback on next program management and monitoring of HCV.
Root Cause:
Response:
Verification of Effectiveness:
There is no standard reference for HCV management and monitoring report while other environmental report refer to Permen LH 45/2005
Acceptable
Several feedback of monitoring HCV were identified and have been recorded in the HCV Monitoring Report:
Monitoring plan is not adequately explained in HCV document’s such as matrix of management & Monitoring, and Monitoring plan does not cover monitoring parameter, frequency, methods, and reports.
Reviewer:
25/08/2016
Ria Gloria
Corrective Action: 1. Determine HCV report standards based on relevant references. 2. Construct an adequate matrix for HCV management and monitoring, that consist of (monitoring and management parameters, methods and outcome) based on HCV identification document 3. Implement management and monitoring based on the new matrix. 4. Conduct adequate reports based on the new matrix
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Condition of HCV information board is checked monthly and repairs if broken. Dissemination regarding HCV area to communities Monitoring to HCV area protection (e.g. hunting to protected animals, vandalism to HCV information board, poisoning of fish) is integrated with patrol and Estate monitoring activity. Etc.
Monitoring of HCV area is conducted every six months. NCR 2016-12 closed Name Ria Gloria Date: 25/08/2016
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Standard(s) & clause(s)
RSPO Criteria 5.3 indicator major 2
Details of non-conforming situation and Objective Evidence : Classification
Major
Section 2 SAI Verification (how and when)
Non-conforming situation:
Due Date:
Hazardous wastes were not disposed of responsibly
27/07/2016
Objective evidence:
SAI Follow up Method: Onsite at Medan Office
Medical waste was stored at hazardous waste temporary storage at estates more than 180 days as stated by permit, the last transported on July 2015.
Correction : (immediate fix)
Root Cause and Corrective Action :
Section 3
Section 4
SAI Global Response Review:
SAI Global Verification of Corrective Action for Effectiveness:
(action to prevent recurrence)
Coordinate with BLH regarding extension of medical waste keeping inline with schedule and transporter availability.
Root Cause:
Response:
Verification of Effectiveness:
Regulation regarding requirement of the third party of hazardous waste management was changed where the third party should be incorporated “PT” while in North Sumatera which has fulfilled the requirements only CV Amindy Barokah. They are still in process to change to “PT”
Acceptable
The organisation sent letter #001/GSD/G/43/VIII/2016 regarding request of extension of medical waste keeping to BLH Prop. Sumatera Utara on 25 August 2016 and has not been replied yet by BLH.
25/08/2016 Reviewer: Ria Gloria
NCR 2016-13 closed Name
14
RSPO Criteria 5.6 indicator major 2
Major
Non-conforming situation:
Due Date:
There was no plans to reduce or minimise the identified pollutant and GHG emission include the objective, target, and timelines for reduction
27/07/2016
Objective evidence: There were no plans to reduce or minimise the identified pollutant and GHG emission that include the objective, target, and timelines for reduction.
SAI Follow up Method: Onsite at Medan Office
Define the environment objective, target, program, and activity plan include how to reduce GHG emission.
Corrective Action:
Ria Gloria
Re-verify to permit and assignment of the third party of hazardous waste complying with regulation.
Date: 25/08/2016
Root Cause:
Response:
Verification of Effectiveness:
The mitigation program has been set up, the source of emission was in progress to identify and the research not yet done.
Acceptable
The organization has been develop objective, program, and activity plan to reduce GHG emission such as energy efficiency, water source conservation, air pollution control, water pollution control, etc.
25/08/2016 Reviewer:
Corrective Action: Monitoring regularly for implementation of objective, target, program, and activity plan to reduce GHG emission.
Ria Gloria NCR 2016-14 is closed Name Ria Gloria Date: 25/08/2016
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Standard(s) & clause(s)
RSPO Criteria 6.1 indicator major 1, 2, 3
Details of non-conforming situation and Objective Evidence : Classification
Major
SAI Verification (how and when)
Non-conforming situation:
Due Date:
There is no evidence Social Impact Assessment (SIA) has been done in Si Bulan Estate and Bah Bulian Estate
27/07/2016
Objective evidence: Si Bulan and Bah Bulian Estate 1.
2.
3.
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Section 2
Social Impact Assessment (SIA) di Si Bulan Estate, Bah Bulian Estate has not been done No evidence that the assessment has been done with the participation of affected parties Bah Bulian, Si Bulan Plans for avoidance or mitigation of negative impacts and promotion of the positive ones, and monitoring of impacts identified, has not been developed in consultation with the affected parties, documented and timetabled, including responsibilities for implementation
SAI Follow up Method: Onsite at Medan Office
Correction : (immediate fix)
Root Cause and Corrective Action :
Section 3
Section 4
SAI Global Response Review:
SAI Global Verification of Corrective Action for Effectiveness:
(action to prevent recurrence)
Provide report of Social Impact Assessment.
Root Cause:
Response:
Verification of Effectiveness:
PIC for Implementation of Social Impact Assessment has inadequate competencies and there is no standard reference for SIA.
Acceptable
Si Bulan Estate
25/08/2016 Reviewer:
Corrective Action: 1. Enhance SIA PIC competency by conducting training 2. Determine a basic standard for assessment and report 3. Implement the assessment and monitoring based on the determined standards
Ria Gloria
SIA was conducted by internal team of Sustainability Department of IndoAgri. Survey was conducted on 16 March 2015 covered village around estate. Stakeholder meeting was conducted on 25 February 2015 and attended by Koramil, NGO Topan, communities, Disnaker, etc. Some aspects were considered during assessment such as land identities, residence, economy, social cultural and public health. Negative impacts and positive were identified during assessment. Negative impact was identified, i.e. availability of security drain. Positive impacts were identified such as: increase the village economy, ease of road access, job opportunities. The community expectations are: social aid in religion, health and infrastructure sector, information regarding best practice agriculture and seeds aid, increasing of job opportunity and scholarship and salary aid for not permanent teacher.
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Standard(s) & clause(s)
Details of non-conforming situation and Objective Evidence : Classification
Section 2 SAI Verification (how and when)
Correction : (immediate fix)
Root Cause and Corrective Action :
Section 3
Section 4
SAI Global Response Review:
SAI Global Verification of Corrective Action for Effectiveness:
(action to prevent recurrence)
Plans for avoidance or mitigation of negative impacts are described in table 16 of SIA document “Social Management Plan”. Social management plan covered dissemination, communication and networking building with all stakeholder, community economy empowerment, increase the quality of community health and education, increase accessibility. Bah Bulian Estate SIA was conducted by internal team of Sustainability Department of IndoAgri. Survey was conducted on 12 April 2015 covered village around estate. Stakeholder meeting was conducted on 18 March 2015 and attended by Kapolsek Raya Kahean, anggota DPRD Kab. Simalungun, community leaders, etc. Some aspects were considered during assessment such as land identities, residence, economy, social cultural and public health. Negative impacts and positive were identified during assessment. Negative impact was identified, i.e. availability of security drain. Positive impacts were identified such as: increase the village economy, ease of road access, job opportunities and availability of business opportunity.
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Audit Report Section 1 N C R Nr .
Standard(s) & clause(s)
Details of non-conforming situation and Objective Evidence : Classification
Section 2 SAI Verification (how and when)
Correction : (immediate fix)
Root Cause and Corrective Action :
Section 3
Section 4
SAI Global Response Review:
SAI Global Verification of Corrective Action for Effectiveness:
(action to prevent recurrence)
The community expectations are: social aid in religion, health and infrastructure sector, information regarding best practice agriculture and seeds aid, increasing of job opportunity and scholarship and salary aid for not permanent teacher. Plans for avoidance or mitigation of negative impacts are described in table 16 of SIA document “Social Management Plan”. Social management plan covered dissemination, communication and networking building with all stakeholder, community economy empowerment, increase the quality of community health and education, increase accessibility. NCR 2016-15 closed Name Ria Gloria Date: 25/08/2016
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Standard(s) & clause(s)
RSPO Criteria 6.5 indicator major 2
Details of non-conforming situation and Objective Evidence : Classification
Major
SAI Verification (how and when)
Non-conforming situation:
Due Date:
Temporary employee (PHL) working in the company are not have a written employment contract between the company and the employee
27/07/2016
Objective evidence: Dolok Estate and Bah Lias Estate Observation and document verification as well as management interview, there were no available employment contract PHL in Dolok Mill and Bah Lias Estate
Doc ID: 3843 / Issue Date May, 2014
Section 2
SAI Follow up Method: Onsite at Medan Office
Correction : (immediate fix)
Root Cause and Corrective Action :
Section 3
Section 4
SAI Global Response Review:
SAI Global Verification of Corrective Action for Effectiveness:
(action to prevent recurrence)
Provide employment contract for PHL
Root Cause:
Response:
Verification of Effectiveness:
Employment contract for PHL has not been properly documented.
Acceptable 25/08/2016
Employment contract for PHL has been provided for Dolok Estate dan Bah Lias Estate. Contract was issued in August 2016.
Reviewer:
NCR 2016-16 closed
Corrective Action: Keep document of employment contract completely for all employees and make employment contract for new employee.
Ria Gloria Name Ria Gloria Date: 25/08/2016
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Standard(s) & clause(s)
RSPO Criteria 6.9 indicator major 1
Details of non-conforming situation and Objective Evidence : Classification
Major
Section 2 SAI Verification (how and when)
Non-conforming situation:
Due Date:
There is no evidence that sexual harassment prevention policy has been implemented consistently
27/07/2016
Objective evidence: SI Bulan Estate, Bah Bulian Estate, Bah Lias Estate, Dolok Estate and Dolok Mill There was no gender committee formed to address the sexual harassment and concern for the women rights
SAI Follow up Method: Onsite at Medan Office
Correction : (immediate fix)
Root Cause and Corrective Action :
Section 3
Section 4
SAI Global Response Review:
SAI Global Verification of Corrective Action for Effectiveness:
(action to prevent recurrence)
Establish Gender Committee in each Management Unit.
Root Cause:
Response:
Verification of Effectiveness:
Implementation of policy regarding sexual harassment prevention has not been handled by special organisational. Complaint regarding sexual harassment was directly reported to Unit Manager or Head of Assistant.
Acceptable
Gender Committee has been established:
Corrective Action: Review program of Gender Committee to ensure that policy regarding sexual harassment is well implemented.
25/08/2016 Reviewer: Ria Gloria
Si Bulan Estate on 20 July 2016 Dolok POM and Estate on 16 July 2016 Bah Lias Estate on 19 July 2016 Bah Bulian Estate on 16 July 2016
Program of Gender Committee has been developed. NCR 2016-17 closed Name Ria Gloria Date: 25/08/2016
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Standard(s) & clause(s)
RSPO Criteria 7.3 indicator major 1 and major 2
Details of non-conforming situation and Objective Evidence : Classification
Major
Non-conforming situation: HCV assessments did not include land use change analysis to determine changes to the vegetation since November 2005 Objective evidence: There was conversion from rubber plantation to oil palm year 2014 – 2015 in Si Bulan Estate.
Section 2 SAI Verification (how and when)
Due Date: 27/07/2016 SAI Follow up Method: Onsite at Medan Office
Correction : (immediate fix)
Root Cause and Corrective Action :
Section 3
Section 4
SAI Global Response Review:
SAI Global Verification of Corrective Action for Effectiveness:
(action to prevent recurrence)
Conduct land use change analysis for conversion area.
Root Cause:
Response:
Verification of Effectiveness:
Conversion area was not new land clearing area therefore land use change analysis has not been conducted.
Acceptable
Corrective Action:
Reviewer:
Evaluate and coordinate completeness of requirements of conversion area, e.g. land use change analysis and other documents.
Ria Gloria
Land use change is being analysed by Faculty of Forestry IPB through agreement #020/ENV/CONT/VII/2016 dated 1 July 2016 regarding Land Use Change Analysis (LUCA) and High Carbon Stock (HCS) in Si Bulan Estate. The analysis is performed within 3 months until 18 September 2016.
25/08/2016
NCR 2016-18 closed Name Ria Gloria Date: 25/08/2016
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Standard(s) & clause(s)
RSPO Criteria 7.8 indicator major 1 and 2
Details of non-conforming situation and Objective Evidence : Classification
Major
Non-conforming situation: New plantation developments have not been designed to minimise net greenhouse gas emissions. Objective evidence: Identification and estimation of the carbon stock of the proposed development area and major potential sources of emissions from conversion from rubber plantation to oil palm year 2014 – 2015 in Si Bilan Estate has not been provided.
Section 2 SAI Verification (how and when)
Due Date: 27/07/2016 SAI Follow up Method: Onsite at Medan Office
Correction : (immediate fix)
Root Cause and Corrective Action :
Section 3
Section 4
SAI Global Response Review:
SAI Global Verification of Corrective Action for Effectiveness:
(action to prevent recurrence)
Conduct carbon stock estimasion for conversion area.
Root Cause:
Response:
Verification of Effectiveness:
Conversion area was not new land clearing area therefore carbon stock estimation has not been conducted.
Acceptable
Corrective Action:
Reviewer:
Evaluate and coordinate completeness of requirements of conversion area, e.g. carbon stock estimation and other documents.
Ria Gloria
Land use change is being analysed by Faculty of Forestry IPB through agreement #020/ENV/CONT/VII/2016 dated 1 July 2016 regarding Land Use Change Analysis (LUCA) and High Carbon Stock (HCS) in Si Bulan Estate. The analysis is performed within 3 months until 18 September 2016.
25/08/2016
NCR 2016-18 closed Name Ria Gloria Date: 25/08/2016
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Audit Report
Mill Supply Chain Certification System
Organisation Name:
PT. PP London Sumatera
Date:
Audit team leader:
27/05/2016
Organisation’s acknowledgement of receipt of NCR
Location: Ria Gloria
Activity/Report ID:
Employee Name:
Mugiyanto
Section 1 N C R Nr .
20
Standard(s) & clause(s)
RSPO SCC Standard Clause D.2.2
Details of non-conforming situation and Objective Evidence : Classification
Major
Non-conforming situation: The mill was not met one of reporting requirements for the appropriate supply chain through the RSPO supply chain managing organization (RSPO IT platform or book and claim). Objective evidence: The mill sold their certificate through GreenPalm, however the mill has not reported their transaction or remove the stock in RSPO IT Platform.
Dolok Site, Sumatera Utara, Indonesia WI-835265
Section 2 SAI Verification (how and when)
Due Date: 27/07/2016 SAI Follow up Method: Onsite at Medan Office
Correction : (immediate fix)
Remove stock in RSPO IT Platform the number of sales through GreenPalm.
Root Cause and Corrective Action :
FMS40044
Date NCR Accepted:
27/05/2016
Section 3
Section 4
SAI Global Response Review:
SAI Global Verification of Corrective Action for Effectiveness:
(action to prevent recurrence)
Root Cause:
Response:
Verification of Effectiveness:
Previous transaction book and claim was still integrated with eTrace therefore stock removal was not needed. However after module RSPO SC eTrace was change, book and claim has not been integrated and the organisation did not conduct removal stock in eTrace.
Acceptable
Number of sale through GreenPalm has been removed from eTrace on 23 August 2015, 16,278 MT CPO. Volume available was 48,527 MT CPO.
25/08/2016 Reviewer: Ria Gloria
PIC for eTrace managing has been assigned and trained on 4 – 5 August 2016. NCR 2016-20 closed
Corrective Action: Remove stock in RSPO IT Platform the number of sales through GreenPalm consistently. Assign PIC dedicated for eTrace managing.
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License/Certificate No.:
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Standard(s) & clause(s)
RSPO SCC Standard Clause D.3.1
Details of non-conforming situation and Objective Evidence : Classification
Major
Non-conforming situation: The site did not have complete and updated written procedures and/or work instructions to ensure the implementation of all the elements specified in RSPO Supply Chain requirements. Objective evidence:
Doc ID: 3843 / Issue Date May, 2014
The Mill has written procedure CSPO Supply Chain (EMS-P17) dated 10 April 2014, however the procedure did not mentioned the supply chain model used by the site. Although the management has published memorandum regarding supply chain model in each mill. Moreover the procedure does not completely covering the implementation of all elements in RSPO supply chain requirements, e.g. RSPO IT Platform (eTrace). The person and mill staffs was unable to demonstrated awareness of the RSPO Supply Chain implementation as he has not trained yet regarding RSPO supply chain certification requirement.
Section 2 SAI Verification (how and when)
Due Date:
Correction : (immediate fix)
Section 4
SAI Global Response Review:
SAI Global Verification of Corrective Action for Effectiveness:
(action to prevent recurrence)
1.
27/07/2016 SAI Follow up Method: Onsite at Medan Office
Root Cause and Corrective Action :
Section 3
2.
Revise SOPP regarding RSPO SC by covering all elements in RSPO SC Conduct training RSPO SC to PIC RSPO SC
Root Cause:
Response:
Verification of Effectiveness:
1.
Acceptable
2.
There were changes in RSPO Supply Chain Certification System. There were no competent personnel for RSPO SC. Material of training and dissemination was delivered only based on internal SOP.
Corrective Action: 1.
2.
Revise SOPP when requirements are changed. Assign PIC for RSPO SC which involving across department, e.g. Sustainability, Operation and Commercial.
25/08/2016 Reviewer: Ria Gloria
Procedure EMS-P17 CSPO Supply Chain was revised on 5 August 2016. The procedure has described the supply chain model used by Dolok Mill and all elements in RSPO SC. Training of RSPO SC has been conducted on 4 – 5 August 2016 with trainer Mr. Asril Darussamin. Material delivered were RSPO SCCS, RSPO SC Standard, RSPO SC Model, RSPO SC Modul and eTrace management. Participants were come from Sustainability, Operation (mill employees) and Commercial.
NCR 2016-21 closed Name Ria Gloria Date: 25/08/2016
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Standard(s) & clause(s)
Supply Chain Certification System 5.3.7
Details of non-conforming situation and Objective Evidence : Classification
Major
Section 2 SAI Verification (how and when)
Non-conforming situation: Not all requirements of supply chain certification were fulfilled.
Due Date:
Objective evidence:
SAI Follow up Method: Onsite at Medan Office
Internal audit supply chain has not been conducted
27/07/2016
Correction : (immediate fix)
Root Cause and Corrective Action :
Section 3
Section 4
SAI Global Response Review:
SAI Global Verification of Corrective Action for Effectiveness:
(action to prevent recurrence)
Conduct internal audit of supply chain as required.
Root Cause:
Response:
Verification of Effectiveness:
Training of RSPO SC has not been conducted to assigned personnel. Previously, training and dissemination only conducted for SC SOP.
Acceptable
Internal audit of supply chain was conducted on 6 August 2016. Nonconformance of internal audit was issued and planned to be corrected in September and October 2016.
25/08/2016 Reviewer:
Corrective Action: Assign RSPO PIC and conduct internal audit of RSPO SC periodically.
Ria Gloria
Organisation has assigned “krani” and sustainability staff for RSPO PIC. Internal audit of RSPO SC is conducted once a year as a minimum. NCR 2016-22 closed Name Ria Gloria Date: 25/08/2016
Doc ID: 3843 / Issue Date May, 2014
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Appendix D – Stakeholder’s issues and comment Until the audit, there was no comment from National or International NGO and Government Institution. Generally, information gathered during consultation described in the table below. The organisation has responded. The organisation responses were accepted by auditor. Date 23 25 May 2016
Stakeholders
Interview Result
Company Response
Sei Balai subdistrict Head, Lima Puluh subdistrict Head, Nagori subdistrict Head, Bosar Maligas subdistrict Head
In generally, the view of stakeholders and the company's relationships with stakeholders and the community quite well and no significant problems
The company always maintain communication with the public and stakeholders, both formally and informally
The subdistrict and village begged the company to weed / grass cleaning policy with herbicides attention to the community of cattle breeders, be informed in advance and do not all of the grass were sprayed
Each Spraying activity will been carried out by the company always marked by boundaries area with spraying activities warning boards
The around subdistrict also propose to the community may be look after the cow in the plantation area and don’t be chased away.
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The sub-districts and villages around the state that some of the letters addressed to the company is not addressed and responded very long (> 3 months) The Request of assistance are also very long responded / followed up by the company The Sei Balai sub-district asked the company to be further enhanced CSR programs, especially in the field of sports, for the assistance given inadequate The sub-district and village requested that the communication between the company and Muspika increased again to establish a good relationship The Bosar Maligas sub-district begged to the company to provide assistance to district staff and veteran members in the district during the holidays / new year
Doc ID: 3843 / Issue Date May, 2014
Until now, the company do not prohibit neatherd except in immature areas, the company has also been expressed to the community that would conduct surveillance of livestock in order not to undermine and interfere with plantation crops. The Company has attempted to respond to every letter and incoming requests from the public although some of that letter was responded via the contact person (phone) Approval of assistance through the process and centralized mechanism in accordance with company procedures The company has attempted to contribute in the form of CSR for society including sports fields
The Company has conducted a variety of formal and informal agenda to establish communication with muspika and establish good relationships The company prefer the program that is developing self-reliance or community development rather than in the form of charity and prioritized to communities directly affected by operational activities
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Date
Stakeholders
Interview Result
Company Response
The Bosar Maligas sub-district appealed that the companies made the bridge at the site in the Bosar Maligas Village, behind the police station, because at the moment path there was only a footpath whereas previously there is the way. But when made the flooding of waterways prevent, vehicles can not pass through another road ( exit and entry ways of Gn Batu)
CSR programs that are tailored were appropriated with the company capability
The Bosar Maligas subdistrict appeal their fund of coordination for Bosar Maligas subdistrict to establish cooperation In the future, The Lima Puluh subdistrict hope the worker from the local area were preferred, because the POM is located in the district of the Lima Puluh subdistrict 23 25 May 2016
Village head around (Nanggar Bayu Village, Sei Balai Village, Plantations Dolok Village, T. Saragih Village)
The village appeal that if people who take brondolan 1 plastic should not be cracked down, It mean just given the coaching course and a letter of agreement
The village appeal that The company prioritize any assistance to The surrounding village and recruit manpower from the surrounding village
Please give the assistance if the villages asked for help heavy equipment for grading village way Nanggar Bayu village begged The village which direct contact with the company getting funding coordination / office use Sei Balai village requested that CSR funds reached the local village of Sei Balai Doc ID: 3843 / Issue Date May, 2014
The company prefer the program that is developing self-reliance or community development rather than in the form of charity and prioritized to communities directly affected by operational activities The company still give priority to local workers in every recruitment. It is stated in the company's commitment
For every act of theft can not be tolerated because it threatens the stability of the production company, however the company still provides an opportunity for the public to take the by-products such as oil sticks and mushrooms The Company still give priority to local workers in every recruitment. it is stated in the company's commitment, Any assistance given by the company was priority to people who are directly affected by operational activities Every assistance request can be communicated and delivered to the company in writing in accordance with the existing procedures in the company. The company prefer the program that is developing self-reliance or community development rather than in the form of charity or donation Lonsum CSR Program has been covering the area of the Sei Balai village as a target realization of the
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Date
23 May 2016
Stakeholders
Simalungun district labor offices
23 25 May 2016
The cooperative
23 25 May 2016
Sibulan Estate Workers Union, Bah Bulian Estate, Dolok / Bah Lias Estate
Doc ID: 3843 / Issue Date May, 2014
Interview Result
The Dolok Plantation Village begged the company to normalize the river and gave boundary river border / DAS clearly because It does not seem the river border area now - District labor offices requested that the company made a contract for all employess, either permanent or nonpermanent employees, to protect all workers - All workers should also be included in the Social Security to protect workers, based on labor contracts Administration of cooperatives in the Bah Bulian estate currently no handle and need personnel
The union asked the company to immediately inform when the employees bonus will be awarded. The union also appealed to the company in order to subsidize electricity to every worker approximately Rp. 20,000 / labor Religious activity in the estate will be enhanced as the event PHBI (celebration of the Islamic religion) Isra Mi'raj, maulid, 1 muharam, etc.
Company Response program, based on the CSR program data that has been given to the Sei Balai village, include road maintenance assistance, Eid gifts and renovation of educational facilities. Normalization or river dredging can not be done in riparian areas that were identified as areas of HCV. If taken would result in erosion and disruption of HCV areas. The Company has completed all contracts / agreements for each employee The Company has registered the employee in employment or health worker program (Jamsostek)
The Company is obliged to facilitate the formation of cooperative entity. The needs of the personnel are the authority of cooperative management and It can not be intervened by the company. Bonus for employees have been granted at the beginning of the month June 2016 The filing and additional requests of facilities and welfare carried out according to existing procedures and discussed with the parties concerned The Company still support these activities, The facilities of activity implementation are available, the company also provided a policy of "One Day Wages" in each year. One day wages is a contribution given the company's entertainment and activities. It amounted to a salary of employee one day all the employees there.
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Appendix E – Definition of, and action required with respect to audit findings: RSPO Principle and Criteria, Indonesian National Interpretation: Major Nonconformities occur when system is failing to meet a relevant compulsory indicator. Action required: This category of findings requires SAI Global to issue a formal NCR; to receive and approve client’s proposed correction and corrective action plans; and formally verify the effective implementation of planned corrections and corrective action. Correction and corrective action plan must be submitted to SAI Global for approval within 14 days of the audit. Follow-up action by SAI Global must ‘close out’ the NCR or reduce it to a lesser category within 90 days or less where specified. Certificate of conformance to the RSPO Criteria cannot be issued while any major nonconformity is outstanding. Major nonconformities raised during surveillance audit shall be addressed within 60 days, or the certificate will be suspended. Major nonconformities not addressed within a further 60 days will result in the certificate being withdrawn. Minor Nonconformities occur when system is failing to meet other indicators. Action required: This category of findings requires SAI Global to issue a formal NCR; to receive and approve client’s proposed correction and corrective action plans; and formally verify the effective implementation of planned corrections and corrective action. In this instance, a certificate may still be awarded providing the root cause of the problem is identified and an acceptable plan is put in place to achieve the outstanding requirements in an agreed time frame. Verification will be made at subsequent surveillance audits. Minor nonconformities will be raised to major if they are not addressed by the following surveillance audit. Opportunity for Improvement is a documented statement, which may identify areas for improvement, but shall not make specific recommendation(s). Client may develop and implement solutions in order to add value to operations and management systems. SAI Global is not required to follow-up on this category of audit finding.
RSPO Supply Chain Certification System: Major Nonconformities occur when system is failing to implement and/or maintain requirements of Supply Chain Certification System. Action required: This category of findings requires SAI Global to issue a formal NCR; to receive and approve client’s proposed correction and corrective action plans; and formally verify the effective implementation of planned corrections and corrective action. When non-conformances rose after the certification, RSPO shall be informed of these non-conformances within 7 days since non-conformance rose. A maximum of one month is given to the certified client to satisfactorily address the non-conformances. The effectiveness of the action taken for the non-conformances shall be assessed before closing o ut the non-conformances. Should the non-conformances not be addressed within the one month maximum time frame, a suspension or withdrawal of the certificate and a full re-audit may be necessary. Where objective evidence indicates that there has been a demonstrable breakdown in the supply chain caused by the certified client’s action or inactions, and that palm oil product that has been or is about to be shipped is falsely identified as RSPO certified product immediate action needs to be taken by SAI Global, and the RSPO Supply Chain certification shall be suspended until such time that it has been addressed. The RSPO shall be notified within 24 hours of this occurrence and further impacts on relevant supply chain certifications. Area of concern issued when there is an area of the system for which the client is required to investigate potential nonconformity. Action required: SAI Global may require client to formulate preventive action plan for approval prior to next planned audit/certification decision or alternatively may follow up client’s preventive action at the next planned audit. Lack of client attention to such issues implies that a preventive action system is not working effectively. Opportunity for Improvement is a documented statement, which may identify areas for improvement, but shall not make specific recommendation(s). Client may develop and implement solutions in order to add value to operations and management systems. SAI Global is not required to follow-up on this category of audit finding.
Doc ID: 3843 / Issue Date May, 2014
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