Sime Darby Summary Report

PUBLIC SUMMARY REPORT
INITIAL RSPO CERTIFICATION ASSESSMENT
SIME DARBY PLANTATION Sdn Bhd
Management Unit SOU1

Kedah, Darulaman, Malaysia
Report Author
Charlie Ross Revised July 2010

[email protected]
Tel: +61 417609026
BSi Group Singapore Pte Ltd (Co. Reg. 1995 02096N)

3 Lim Teck Kim Road #1002
Singapore Technologies Building
SINGAPORE 088934
Tel +65 6270 0777
Fax +65 6270 2777
www.bsiasia.com
Soon Leong Chia: [email protected]
BSi Management Systems Malaysia Sdn Bhd (Co.Reg. 804473 A)

Suite 19.05 Level 19 Wisma Goldhill
65, Jalan Raja Chulan
50200 Kuala Lumpur
MALAYSIA
Tel +03 2032 2252 (Hunting Line)
Fax +03 2032 2253
Teo Chin Siong: [email protected]
ii
TABLE of CONTENTS
Page No
SUMMARY ...........................................................................
...................................................................................
. 1
ABBREVIATIONS USED ................................................................
............................................................................. 1
1.0
SCOPE OF CERTIFICATION ASSESSMENT .................................................

.................................................... 17
1.1
National Interpretation Used ......................................................
.............................................................. 1
1.2
Certification Scope ...............................................................
..................................................................... 1
1.3
Location and Maps .................................................................
................................................................... 1
1.4
Description of Supply Base ........................................................
................................................................ 1
1.5
Date of Plantings and Cycle .......................................................
................................................................ 6
1.6
Other Certifications Held .........................................................
................................................................. 6
1.7
Organisational Information/Contact Person .........................................
.................................................... 6
1.8
Time Bound Plan for Other Management Units ........................................
................................................ 6
1.9
Area of Plantation ................................................................
..................................................................... 7
1.10
Approximate Tonnages Certified ....................................................
........................................................... 7
1.11
Date Certificate Issued and Scope of Certificate ..................................
...................................................... 7
2.0
ASSESSMENT PROCESS ................................................................

.............................................................. 79
2.1
Certification Body ................................................................
..................................................................... 7
2.2
Assessment Methodology, Programme, Site Visits ....................................
................................................ 7
2.3
Qualifications of Lead Assessor and Assessment Team ...............................
.............................................. 8
2.4
Stakeholder Consultation and List of Stakeholders Contacted .......................
........................................... 8
2.5
Date of Next Surveillance Visit ...................................................
............................................................... 9
3.0
ASSESSMENT FINDINGS ...............................................................

............................................................. 922
3.1
Summary of Findings ...............................................................
.................................................................. 9
3.2 Detailed Identified Nonconformities,
Corrective Actions and Auditor Conclusions ........................................

.............................................. 20
3.3
Noteworthy Positive Components ....................................................
...................................................... 21
3.4 Issues Raised by Stakeholder and Findings
with Respect to Each Issue ........................................................

........................................................ 21
3.5
Acknowledgement of Internal Responsibility ........................................
.................................................. 22
3.6 Formal Sign
off of Assessment Findings ........................................................
.......................................... 22
LIST of TABLES
1
2
3
4
5
Mill GPS Location .................................................................

...................................................................................
.......... 1
Mill Supply Base ..................................................................
...................................................................................
........... 6
Age Profile of Planted Palms ......................................................
...................................................................................
.... 6
Estates and Areas Planted .........................................................
...................................................................................
.... 7
Approximate Tonnages Certified ....................................................
..................................................................................
7
LIST of FIGURES
1
2
3
4
5
SOU1 Location Map .................................................................

...................................................................................
...... 2
Sungai Dingin Estate Layout .......................................................
...................................................................................
.... 3
Padang Buluh Estate Layout ........................................................
...................................................................................
.. 4
Jentayu Estate Layout .............................................................
...................................................................................
....... 5
Pesticides Usage Toxicity Units 20042008 .........................................
........................................................................... 13
LIST of PLATES
1
2
3
4
5
Riparian Buffer Strip Established at Replanting ...................................

........................................................................... 12
Beneficial Plants along Estate Road ...............................................
................................................................................. 1
3
A Well Designed Pesticide Mixing Area .............................................
............................................................................. 13
Gunung Inas Forest Reserve Bordering Sg Dingin Estate .............................
................................................................... 16
Padang Buluh Estate Worker Linesite ...............................................
.............................................................................. 21
LIST of APPENDICES
A
B
C
D
Sime Darby Time Bound Plan

SOU1 RSPO Certificate Details
Certification Assessment Program
List of Stakeholders Contacted
Public Summary Report RSPO Certification Assessment Management Unit SOU1
SUMMARY
Sime Darby Plantation Sdn Bhd owns and operates 61
palm oil mills for processing the crop from its 208 oil
palm estates located in Malaysia and Indonesia, as well
as the fruit that it purchases from outside suppliers.
The Initial Certification Assessment was conducted

between 21 and 24 July 2009, but the submission of this
Report to RSPO was delayed until May 2010 when the
RSPO Executive Board agreed to the resolution of issues
at Sime Darby properties in Indonesia that affected
Partial Certification compliance requirements.
BSi Group Singapore Pte Ltd (BSi) has conducted an

assessment of Sime Darby Plantation Sdn Bhd
Management Unit SOU1 (SOU1) operations comprising
One (1) mill, supply base, support services and
infrastructure. BSi concludes that SOU1 operations
comply with the requirements of RSPO Principles &
Criteria: 2007 and MYNI Indicators and Guidance : 2008.
BSi recommends, subject to the resolution of claims

made regarding land tenure and loss of HCVs at
properties in Indonesia, SOU1 be approved as a producer
of RSPO certified sustainable palm oil.
Page 1
SOU
SPKS
Strategic Operating Unit

Serikat Petani Kelapa Sawit (Oil Palm
Smallholders Association)
TQEM Total Quality Environmental Management
TSS
Total Suspended Solids
1.0 SCOPE OF CERTIFICATION ASSESSMENT

1.1 National Interpretation Used
The operations of the mill and its supply base of FFB
were assessed against the Malaysian National
Interpretation (MYNI : 2008) of the RSPO Principles and
Criteria : 2007.
1.2 Certification Scope

The scope of certification is the production from the
Sungai Dingin Palm Oil Mill that is sourced from 7
company owned Estates at SOU1.
1.3 Location and Maps
ABBREVIATIONS
AMESU All Malayan Estates Staff Union
BOD Biological Oxygen Demand
CAR
Corrective Action Request
CDA Controlled Droplet Application
CHRA Chemical Health Risk Assessment
CPO Crude Palm Oil
DOE Department of Environment
DOSH Department of Occupational Safety & Health
EFB
Empty Fruit Bunch
EMS Environmental Management System
ERP
Emergency Response Plan
FFB
Fresh Fruit Bunch
HCV High Conservation Value
HIRAC Hazard Identification Risk Assessment Control
IPM
Integrated Pest Management
LTA
Lost Time Accident
MAPA Malayan Agricultural Producers Association
MPOA Malaysian Plantation Owners Association
MPOB Malaysian Palm Oil Board
MSDS Material Safety Data Sheet
MYNI Malaysian National Interpretation
NUPW National Union of Plantation Workers
OHSAS Occupational Health & Safety Assurance System
OSH Occupational Safety & Health
PK
Palm Kernel
POME Palm Oil Mill Effluent
PPE
Personal Protective Equipment
QMS Quality Management System
R&D Research and Development
SEIA Social and Environmental Impact Assessment
SIA
Social Impact Assessment
SOP
Standard Operating Procedure
Prepared by BSi Group Singapore Pte Ltd
The SOU1 Mill and Estates are located in Kedah,

Darulaman, Malaysia (Figure 1). Additional maps
showing details of Sungai Dingin, Padang Buluh and
Jentayu Estates are included (Figures 2, 3 and 4). The
GPS location of the Mill is shown in Table 1.
Table 1: Mill GPS Location
MILL
LONGITUDE
LATITUDE
Sungai Dingin
100 400 E
5 240 N
1.4 Description of Supply Base

The majority (986%) of the Sungai Dingin Mill supply
base is sourced from the SOU1 Estates and the
remainder (14%) is from adjacent Sime Darby Estates
(SOU2 and SOU3).
RSPO Certification Assessments have been carried out

for the SOU2 and SOU3 Estates, but Initial Certifications
have not yet been approved.
The FFB production from SOU1 Estates and adjacent

Sime Darby Estates for the 01 July 2008 30 June 2009
reporting period is listed in Table 2.
for Sime Darby Plantation Sdn Bhd

Page 2
Figure 1: SOU1 Location Map


Page 3
Figure 2: Sg Dingin Estate Layout

Page 4
Figure 3: Padang Buluh Estate Layout


Page 5
Figure 4: Jentayu Estate Layout


Table 2: Mill Supply Base
Source / Estate
FFB (t)
Padang Buluh
Sungai Dingin
Bukit Selarong
Anak Kulim
Bukit Hijau
Sungai Dingin Special
Jentayu
Total SOU1 Estates
72,461
60,782
38,938
20,191
34,913
17,514
25,810
270,609
Adjacent Sime Darby

Estates*
SOU 2 Holyrood
SOU 2 Sg Kerian
SOU 2 Somme
SOU 2 Tali Ayer
SOU 3 Changkat Salak
SOU 3 Kamuning
SOU 3 Kalumpong
Total Adjacent
987
1,404
83
12
77
1,145
246
3,954
OVERALL TOTAL
274,563
* The FFB production from the adjacent Sime Darby

Estates is included in the Initial RSPO Certificate for
SOU1.
1.5 Date of Plantings and Cycle

The company owned Estates were developed in the
1940s initially to rubber. Oil palms were first planted in
the 1980s and are in the 2nd cycle. The age profile of the
palms is shown in Table 3.
Table 3: Age Profile of Palms
AGE (years)
% of PLANTED AREA
21 30
110
11 20
282
4 10
570
0 3
38
1.6 Other Certifications Held

SOU1 holds no other Certifications.
Page 6
1.7 Organisational Information / Contact Person

Sime Darby Plantation Sdn Bhd
Ladang Bukit Selarong
09400 Padang Serai
Kedah Darulaman MALAYSIA
Contact Person:
Phone:
Fax:
Email:
Mr S Manokaram
SOU Chairman/Estate Manager
+6044035233
+6044033135
[email protected]
1.8 Time Bound Plan for Other Management Units

Sime Darby Time Bound Plan (updated November 2009)
is included as Appendix A. During the year, Sime Darby
realigned three of the Management Units in Malaysia for
strategic operating reasons. This reduced the total
number of management units from 61 to 58.
In August 2009, Sime Darby and Kulim (Malaysia) Berhad
reached agreement on the acquisition and disposal of
one estate. Sime Darby acquired Sungai Simpang Kiri
Estate from Kulim and at the same time disposed of
Sungai Tawing Estate to Kulim. The Sungai Simpang Kiri
Estate was certified by BSi in January 2009 when it was
part of the Kulim Group.
In August 2009, Sime Darby disbanded SOU24a after the
transfer of Sungai Tawing Estate to Kulim, realignment
of Cenas Estate with SOU24 and closure of Sungai
Tawing Mill. Sime Darby also disbanded SOU30a in
September 2009 after realignment of Jeleta Bumi Estate
with SOU28 and closure of Jeleta Bumi Mill.
Sime Darby has varied the previous Time Bound Plan by
concentrating initially on achieving certification for all of
the management units in Malaysia, followed by those in
Indonesia. This enabled Sime Darby to bring forward the
certifications of Management Units. By 30 June 2009,
certification assessments had been completed for 67%
of the Management Units, compared to the projected
45% in the 2008 Time Bound Plan.
BSi considers that the variation of the Time Bound Plan
was reasonable to focus the training and
implementation resources on the operations within a
single jurisdiction. BSi recommends acceptance of the
Time Bound Plan variation.
Sime Darby has advised BSi that no new land tenure
issues have surfaced at any of its properties since the
Initial Certification Assessment of SOU1. During 2009
progress was made on dialogue between Sime Darbys
Management Unit PT MAS in West Kalimantan and the
organisation SPKS that represents schemed smallholder
interests. Sime Darby has agreed with SPKS for the local
Dayak Leader (Adat Regional Head) to participate in
meetings as mediator. Sime Darby met with Sawit
Watch representatives at RT7 for discussions on land
issues localised to one estate in West Kalimantan.

Sime Darby has advised BSi that there are no labour

conflicts at any of its oil palm operations.
Sime Darby notified BSi that during 2009 it had engaged
consultants who completed HCV Assessments at all of its
operations in Indonesia that it acquired in November
2007 and where new development had been carried out
since November 2005. The assessment indicated that
land with HCV present had been cleared and developed
to oil palm at Sukamandang and Pemanting SOUs in
West Kalimantan. In May 2010, the RSPO notified Sime
Darby that the RSPO Executive Board had reached
agreement on Sime Darbys HCV offset for the affected
area.
BSi considers that Sime Darby meets the RSPO
requirements for Partial Certification.
1.9 Area of Plantation

The areas of planted palms at SOU1 Estates are listed in
Table 4.
Table 4: Estates and Area Planted
Estate
Mature (ha)
Immature (ha)
Padang Buluh
Sungai Dingin
3,403
131
3,082
Bukit Selarong
4,139
279
Anak Kulim
1,235
Bukit Hijau
2,278
Sg Dingin Special
1,021
Jentayu
1,955
268
TOTAL
17,113
678
1.10 Approximate Tonnages Certified

The approximate tonnages certified on the basis of 01
July 2008 30 June 2009 production are detailed in
Table 5.
Table 5: Approximate Tonnages Certified
MILL
CPO
PK
Sungai Dingin
67,492
14,870
1.11 Date Certificate Issued and Scope of Certificate

The scope of the Certificate is for the production from
the Sungai Dingin Palm Oil Mill and the supply base from
the seven SOU1 Estates. Certificate details are included
as Appendix B.
Page 7
The Certificate issue date will be the date of the RSPO

approval of this Assessment Report.
2.0 ASSESSMENT PROCESS
2.1 Certification Body
BSI Group Singapore Pte Ltd
3 Lim Teck Kim Road #1002
Singapore Technologies Building
Singapore 088934
Product Manager: Mr Soon Leong Chia
Phone: +65 6270 0777 Ext 115
Fax: +65 6270 2777
Email: [email protected]
BSi is a leading global provider of management systems
assessment and certification, with more than 70,000
certified locations and clients in over 100 countries. BSi
Standards is the UKs National Standards Body. BSi
provides independent, third party certification of
management systems. BSi has a Regional Office in
Singapore and an Office in Kuala Lumpur.
2.2 Assessment Methodology, Programme, Site Visits
BSi conducted a Stage I Certification Assessment 12 to
15 May 2009 against the RSPO MYNI : 2008. The scope
of the Stage I Assessment included Sungai Dingin Mill,
Sungai Dingin and Padang Buluh Estates and support
infrastructure and focussed on field inspections and a
review of management systems and documentation.
The Stage I Assessment identified a number of
nonconformities. SOU1 prepared a Corrective Action
Plan and has implemented corrective actions since May
2009.
BSi conducted the Stage II Certification Assessment 21 to
24 July 2009. The Certification Assessment Program is
included as Appendix C.
The approach was to audit the Mill together with two
Estates chosen from its supply base, such that a range of
environmental and social factors were covered. These
factors included consideration of topography, soils, age
of palms and proximity to local communities and areas
with HCVs. Sungai Dingin Estate was selected for the
audit as it contained the Mill and the system for land
application of treated POME. Padang Buluh Estate was
selected as it contained a lowlying area that is subject to
flooding. The BSi Technical Specialist Ecology visited Sg
Dingin, Anak Kulim and Jentayu Estates that border
Forest Reserves. The audit also checked the
implementation of corrective actions since the May 2009
Stage I audit.
The methodology for collection of objective evidence
included physical site inspections, observation of tasks
and processes, interview of staff, workers and their
families and external stakeholders, review of
documentation and monitoring data. Checklists and
questionnaires were used to guide the collection of
information.

The assessment was based on random samples and

therefore nonconformities may exist which have not
been identified.
Mr Allan Thomas, BSi Lead Auditor EMS, QMS and
OHSAS has reviewed this report for conformance with
RSPO Certification System requirements and technical
content.
Mr Soon Leong Chia, BSi Product Manager RSPO, has
reviewed this report for conformance with BSi
Procedures and the RSPO Certification System
requirements.
2.3 Qualifications of the Lead Assessor and

Assessment Team
BSi Group Singapore holds copies of educational
qualifications, certificates and audit logs for each of the
audit team members. BSi has evaluated the
qualifications and experience of each audit team
member and has registered the following designations
for conducting RSPO Assessments.
Charlie Ross Lead Assessor
B.App.Sc. M.Sc (Env.Studies)
o
Lead Auditor EMS RABQSA Cert N 14370
Iman Nawireja Social Assessor
B.Ag.Sc. M.Sc. (Comm)
Jarwadi Hernowo Technical Specialist, Ecology
and Impact Assessment B.Sc. M.Sc (Ecology)

Robyn Ross Social Assessor
Betsy Sunga Interviewer/Assistant
Charlie Ross is an independent environmental auditor

who has extensive fieldwork experience in conducting
environmental and social assessments of oil palm
projects over the past 18 years in Indonesia, Malaysia,
Nigeria, Papua New Guinea and Solomon Islands. He has
participated in fieldwork for HCV assessments since
2004. He has completed lead auditor training in ISO
9001 Quality Management Systems, lead auditor training
in OSHAS 18001 Occupational Health and Safety
Assurance Systems, auditor training in Environmental
Management, SA8000 Social Accountability and RSPO
P&C. He has been involved in the RSPO process since
RT1 and has conducted Certification audits of oil palm
plantation companies against the RSPO P&C in
Indonesia, Malaysia and PNG.
Iman Nawireja graduated with a Bachelor of Agricultural

Science from the University of Bogor in 1997 and a
Masters Degree in Communications from the University
of Indonesia in 2002. He is a Lecturer in social statistics
at the University of Bogor and has more than 10 years
experience in conducting social impact assessments of
agriculture, mining and forestry projects. He has
assisted with field studies on the effect of resource
development projects on farmer and community
incomes, health status and household division of labour.
He has completed Lead Auditor training in ISO 14001
Environmental Management Systems. He has assisted in
conducting environmental and social assessments of oil
Page 8
palm projects during the past 7 years. He has assisted

with conducting Certification audits of oil palm
plantation companies against the RSPO P&C in Indonesia
and in Malaysia.
Jarwadi Hernowo graduated with a BSc in Forest Ecology

from the University of Bogor in 1985 and an MSc in
Wildlife Ecology from the Faculty of Forestry Science,
Georg August Universitat, Geottingen, Germany in 1995.
Jarwadi is a lecturer in ecology at the University of Bogor
with more than 20 years experience in forest ecology
and has carried out research on the habitats, distribution
and population of wildlife. He has extensive fieldwork
experience in the assessment of flora and fauna
biodiversity and HCVs. He has assisted in conducting
independent environmental assessments of oil palm
projects during the past 7 years. He has assisted with
conducting Certification audits of oil palm plantation
companies against the RSPO P&C in Indonesia and in
Malaysia.
Robyn Ross has a background in company administration

and supporting women with mental health and physical
disabilities by assisting them to develop skills for living
independently in the community. She has assisted with
fieldwork in conducting environmental and social
assessments of oil palm projects over the past 7 years in
Indonesia and Nigeria. She has completed auditor
training in SA8000 Social Accountability. She has
assisted with conducting Certification audits of oil palm
plantation companies against the RSPO P&C in
Indonesia, Malaysia and Papua New Guinea.
Betsy Sunga is a Teacher with Borneo Child Aid Society

and is fluent in Bahasa Malaysia, Sabahan and English.
She assisted Robyn Ross during interview of female
staff/workers and families.
2.4 Stakeholder Consultation and List of
Stakeholders Contacted
Stakeholder consultation involved internal and external
stakeholders. External stakeholders were notified by
placing a copy of the Stakeholder Notification letter on
the RSPO, Sime Darby and BSi websites. Letters were
written to individual stakeholders and meetings were
arranged to discuss SOU1 environmental and social
performance.
During the stakeholder notification period, BSi did not

receive any responses in writing from stakeholders.
Meetings were held with stakeholders to seek their
views on the performance of the company with respect
to the RSPO requirements and aspects where they
considered that improvements could be made.
Stakeholders included those immediately linked with the
operation of the company such as employees,
smallholders and contractors, as well as organisations
that may have an interest in SOU operations or adjacent
areas.

Stakeholder consultation took place in the form of

meetings and interviews. The interviewer explained the
purpose of the audit at the outset followed by an
evaluation of the relationship between the stakeholder
and the company before discussions proceeded. The
interviewer recorded comments made by stakeholders
and these have been incorporated into the assessment
findings.
Structured interviews with male and female staff and

workers were held in private at the workplace in the mill
and the estates. Fieldworkers were interviewed
informally in small groups in the field. Separate visits
were made to each of the nine local communities to
meet with the village head, religious leader, and
residents. In addition, the wives of workers and staff
were interviewed in informal group meetings at their
housing. Company officials were not present at any of
the stakeholder consultations.
A list of Stakeholders contacted/interviewed is included

as Appendix D.
2.5 Date of Next Surveillance Visit

The next surveillance visit is planned before the first
anniversary of the RSPO approval of the Initial
Certification.
3.0 ASSESSMENT FINDINGS
3.1 Summary of Findings
As outlined in Section 2.2, objective evidence was
obtained separately for each of the RSPO Indicators for
the Mill and the relevant Estate. The results for each
indicator from each of these operational areas have
been aggregated to provide an assessment of overall
conformance of the Companys operations with each
Criterion. A statement is provided for each Indicator to
support the findings of the assessment team.
Two (2) Nonconformities were raised against Minor
Compliance Indicators. Eleven (11) Observations /
Opportunities for improvement were identified. Where
a nonconformity/observation is assigned, reference is
made at the end of the text of the Indicator to which it
refers. Details of the Nonconformities are given in
Section 3.2 (Page 19).
SOU1 has prepared a Corrective Action Plan that was
reviewed and accepted by BSi. Progress on
implementation of corrective action will be checked
during the Surveillance Audit scheduled to be carried out
within twelve months of SOU1 receiving initial RSPO
Certification.
BSi has conducted an assessment of the SOU1
operations comprising 1 mill, 7 oil palm estates, support
services and infrastructure. BSi concludes that SOU1
operations comply with the requirements of RSPO

Page 9
Principles & Criteria: 2007 and MYNI Indicators and

Guidance : 2008.
BSi recommends, subject to the resolution of claims
made regarding land tenure and loss of HCVs at
properties in Indonesia, SOU1 be approved as a
producer of RSPO certified sustainable palm oil.
Criterion 1.1: Oil palm growers and millers provide

adequate information to other stakeholders on
environmental, social and legal issues relevant to RSPO
Criteria, in appropriate languages & forms to allow for
effective participation in decision making.
The Mill and Estates have implemented a system for
receiving and responding to written communications,
including requests for information. The Estates keep
files of requests for information and responses, such as
on operating statistics and requests from MPOB. The
Mill maintains files with records of requests for
information and responses, for example, MPOB Brief
Survey on Biogas Utilisation received 9 April 2009 and
responded same day by fax. (1.1.1)
Criterion 1.2: Management documents are publicly

available, except where this is prevented by commercial
confidentiality or where disclosure of information
would result in negative environmental or social
outcomes.
The Estates hold copies of each of the management
documents listed under Criterion 1.2 and these are
publicly available upon request. The Estates hold copies
of Freehold Land Titles as detailed for Indicator 2.2.1.
(1.2.1)
A copy of the Health and Safety Policy signed by Top
Management April 2008 is displayed on notice boards
and is available to the public.
The Mill and Estates have an OSH Programme
documented for the calendar year JanuaryDecember
2009 and are in the process of implementing an OSHAS
18001 Management system with the aim of achieving
certification by the end of 2009. (1.2.2)
The Estates and Mill have identified environmental
aspects and impacts (April 2009) using a risk assessment
process and a register is available. In addition, an
Environmental Improvement Plan has been prepared for
addressing the significant impacts. Sime Darby TQEM
team carried out an SIA in May 2009 and a report is
available that includes a Social Action Plan for
Management of Social Impacts. (1.2.3)
The Mill has an Environmental Management Plan for
200809 that includes pollution prevention actions for
management of palm byproducts and effluents.
The Estates have prepared a Pollution Prevention Plan
that takes into account the findings from the Stage I
Assessment for control of Point Source Pollutants.
(1.2.4)
The Estates and the Mill have implemented a log book
system for recording verbal and written complaints.
Records are also available for complaints raised at
quarterly OSH Meetings. (1.2.5)

Negotiation Procedures are documented in the form of a

flow chart in Appendix 5 of the Sustainable Plantations
Management System Manual issued April 2008. A copy
of the procedures is held on site. (1.2.6)
Improvements have been approved in the capital budget
and are planned during the next financial year
(2009/10). The Continuous Improvement Plan is made
up of the Pollution Prevention Plan, Water Conservation
Plan, Waste Management Plan and the Social Action
Plan. (1.2.7)
Criterion 2.1 There is compliance with all applicable

local, national and ratified international laws and
regulations.
Legal compliance can be demonstrated from audit
reports, such as the Sime Darby Group Assurance
Department Audit carried out in November 2008, and
reference to documents and records held on site. The
Mill and Estates maintain copies of all Permits and
Licences on file. Inspection of a sample of permits, such
as for compressors, showed these were current. The
most recent DOSH visit for Padang Buluh Estate was 28
January 2009 with four items to be actioned and for Sg
Dingin Estate on 23 February 2009. The action items
identified have been rectified, for example, a guard
cover for the water pressure jet for vehicle washdown at
Sungai Dingin. On 27 April 2009 DOSH carried out the
Mill annual inspection of sterilisers, overhead crane and
water treatment. The most recent DOE visit was 14 May
2009 for audit of compliance and collection of effluent
samples. DOE did not identify any corrective action
items required to be carried out.
Mill effluent samples are tested monthly at Sime Darby
Research Laboratory and review of the results confirmed
compliance with land application limits for the previous
twelve months.
Boiler emissions were tested 24 June 2009 and were in
compliance with regulation 25 of the Malaysian
Environmental Quality (Clean Air) Regulations, 1978.
Smoke density meters were serviced and calibrated by
Sumber Sari Sdn Bhd 20 June 2009 and were operational
at the time of the Certification assessment. Continuous
monitoring of boiler smoke emissions confirmed
compliance with regulatory requirements.
Noise levels have been measured at the mill and mapped
to show areas >85dbA, where safety signs have been
posted and wearing of hearing protection is mandatory.
The mill supplies staff and workers with hearing
protection that is required to be worn within the mill
area.
The majority of housing is supplied with treated water
direct from the Government supply to individual houses.
Water from the Government supply is tested twice
annually last tested 21 January 2009 and was within
compliance with Drinking Water Standard described in
the Twentyfifth Schedule, Regulation 394(1), Food
Regulations 1985. The water supply to Sg Dingin Estate
housing is obtained from a spring. Water was sampled
and tested by Government Health Department 23 March
2009 at the Sg Dingin supply source and after treatment.
The results confirmed suitability of the water for
drinking and absence of pesticides residues.
Page 10
Electricity is supplied to housing from the Government

supply.
SOU1 has an extension of overtime hours for the Mill
approved in a letter from Labour Department 29 January
2009 extension for the period 01022009 31012010.
Inspection of pay records confirmed compliance with the
Employment Act in relation to pay rates and overtime.
Sime Darby Head Office arranges the recruitment of
foreign workers. Checks of a sample of records held at
SOU1 confirmed work permits were held for foreign
workers.
Padang Buluh main division housing was constructed in
the 1990s and meets the government standard. There is
an approved budget to replace substandard housing at
Jerai Division with 24 houses being built during 2009/10.
Sg Dingin housing is scheduled to be replaced in 2009/10
and Labour Department Officers visited on 14 May 2009
to discuss and approve details of the Housing
Replacement Plans.
Tractor drivers within the Estates are required to
complete a defensive driver training course. The Estates
have carried out spot checks to ensure FFB contractors
have current drivers licenses. The Estates and Mill hold
copies of motor vehicle registration for those vehicles
that use public roads. The Mill holds copies of Operators
Certificates, such as for the boiler operator Certificate
No PK35/95 issued 29 May 1995 at IPOH, PERAK , on file.
(2.1.1)
Observation 01 refer Section 3.2 Page 20 for details
The Mill and Estates have implemented a legal
requirements system developed by Standards and
Compliance Unit of Sime Darby TQEM Department. This
includes a list of legislation, summary of legal
requirements, licences and expiry dates. In addition, the
Estates hold hard copies of relevant legislations, such as
the Employment Act. (2.1.2)
Implementation of legal requirements is checked by
internal audits and enforced by Corrective Action Plans.
Sime Darby TQEM Mill Advisory and Plantation Advisory,
Synergy and Transformation Department and the Safety
and Health Unit conduct audits of the operations, which
include applicable legal requirements. Sime Darby
Group Corporate Assurance conducts annual Internal
Audits that include assessment of legal requirements
and implementation of Policies. The Plantation Advisor
checks legal compliance aspects at the Estates. For
example at Padang Buluh Estate the most recent Audit
visit was 2628 April 2009 and there were no legal
compliance issues raised. The most recent Mill Advisory
visit was 67 January 2009. An OSH assessment was
carried out 17 April 2009. (2.1.3)
TQEM Standards and Compliance Unit provide legal
updates on all applicable legislation throughout Sime
Darby. In addition, MAPA, MPOA, AMESU, NUPW and
Sime Darby Regional Office provide legal updates on
changes to labour laws and worker pay and conditions.
The most recent MAPA Circular was dated 19 June 2009.
(2.1.4)
Criterion 2.2 The right to use the land can be

demonstrated and is not legitimately contested by local
communities with demonstrable rights.

All of SOU1 land is on freehold title and copies of the

titles are available on site. A sample of the titles was
sighted during the audit, for example, Padang Buluh
Estate, Hakmilik G11790 Lot 2399 Mukim Sidam Kiri
issued 9 April 1991; Sg Dingin Estate, Hakmilik GRN240
Lot 592 Mukim Sedim, District of Kulim issued 1 June
1967. (2.2.1)
Following the merger of the three plantation companies
to form Sime Darby, the company name is being
changed on all Land Titles. Sime Darby Land
Management Department advised 20 April 2009 that the
Land Title transfer is in process. The Estates operations
are consistent with the terms of the land title for
agriculture. (2.2.2)
The Estates have maps showing the locations of
boundary stones, which are marked with a post painted
red and white. Inspection of a sample of boundary
stones at Sungai Dingin and Padang Buluh Estates
confirmed these were clearly marked with a red and
white post. (2.2.3)
At the time of the Certification Assessment, the available
information indicated there were no current or recent
land disputes. All of the oil palm operations are on
Freehold Title, which has not been disputed. Interview
of local community leaders and enquiry with the
Department of Land and Survey confirmed there are
currently no land disputes at SOU1. (2.2.4)
Criterion 2.3 Use of the land for oil palm does not
diminish the legal rights, or customary rights, of other
users without their free, prior and informed consent.
All of the Estates operations are on Freehold land. The
SOU does not restrict access through the Estates except
for trucks transporting FFB, which are required to obtain
permission. The estates are dissected by public roads
that provide unrestricted access. (2.3.1)
All of the Estates operations are on Freehold land. There
are no disputes. (2.3.2)
All of the Estate operations are on Freehold land and
there are no negotiated agreements. (2.3.3)
Criterion 3.1: There is an implemented management

plan that aims to achieve longterm economic and
financial viability.
The Mill and Estates have an annual operating and capex
budget, prepared May 2009, that is projected for five
years (2009/10 to 2013/14) in relation to production and
performance indicators. For example, the Mill
performance indicators include oil extraction rate, kernel
extraction rate, free fatty acids, Mill throughput,
utilisation and FFB processed. The mill has high capacity
(80t/h) and processed 310,464t of FFB in 2008/09.
(3.1.1)
The Estates have a replanting programme projected for
ten years that was reviewed (Padang Buluh 9 May 2009)
and (Sg Dingin 28 March 2009). (3.1.2)
Page 11
Criterion 4.1: Operating procedures are appropriately

documented and consistently implemented and
monitored.
The estates are implementing the Sime Darby Plantation
Quality Management System that integrates elements of
Quality, Environment and OSH. SOPs are documented in
the Estate Quality Management System Manual issued
November 2008. The Estate SOPs have been translated
into Bahasa Malaysia and cover operations from
replanting through to upkeep and harvesting. The
Estates SOPs, including pictorials illustrating techniques,
were displayed on notice boards at Sungai Dingin and
Padang Buluh Muster areas.
Millspecific SOPs are documented as Pictorial Work
Instructions in Bahasa Malaysia for each work station.
Inspection of the Mill confirmed the Work Instructions
(issued April 2009) were displayed at each work station.
At the Maintenance Workshop for example, Work
Instructions were displayed for general tools and
equipment, such as the electric arc welder. (4.1.1)
The Estates carry out checks on the implementation of
SOPs during daily field inspections. Where deviation
from an SOP is found, corrections are made immediately
by verbal instructions passed to the Mandore and field
workers. In addition, the Estate Manager carries out
weekly inspections. Formal records of monitoring SOP
implementation are available from Plantation Advisor
internal audit reports of the Estates. Each Estate
Manager is required to respond to the findings of audit
reports and records are available of the corrective
actions.
An Agricultural Audit is carried out approximately 6
monthly by the Plantation Advisor and the Sime Darby
TQEM Team. At Padang Buluh Estate, the most recent
audit by Plantation Advisor was 2729 April 2009 and
TQEM 29 April 2009; Sg Dingin Plantation Advisor audit
1618 March 2009 and Sime Darby TQEM 27 April 2009.
Reports are held for at least 5 years then archived.
The Mill Operators record operating parameters on log
sheets for each work station, together with any
abnormal conditions and equipment breakdowns. In
addition, the Shift Supervisor notifies the Maintenance
Workshop of any repairs required. The Mill Engineer
monitors operations by carrying out physical inspections
and review of log sheets. Inspection of the Mill indicated
log sheets were being completed correctly. Internal
audits by the Mill Advisor provide additional checks of
SOP implementation. For example, records showed the
most recent Mill Advisory visit was carried out 67
January 2009. (4.1.2)
Criterion 4.2: Practices maintain soil fertility at, or

where possible improve soil fertility to, a level that
ensures optimal and sustained yield.
Sime Darby Agronomy Section of R&D Department
makes annual recommendations for fertiliser
application. The Estate Managers check that fertiliser
application matches the recommendation. The fertiliser
recommendation includes details of the type and
quantity to be applied to each oil palm block. (4.2.1)

Sime Darby Agronomy Section of R&D Department

carries out annual visual inspection of the palms and leaf
sampling to monitor palm nutrient status and the most
recent fertiliser recommendation reports were available
for Padang Buluh 17 December 2008 and Sg Dingin 23
January 2009. The Sime Darby Agronomy Section of R&D
Department has recently revised the policy for soil
sampling, which is scheduled to be carried out in the
second half of 2009. The Estates hold a summary of the
foliar sampling results on file and R&D Department
keeps a copy of detailed records. (4.2.2)
The Estates maintain records of the quantity of EFB
received from the Mill and applied to each block on a
daily basis. R&D Department carries out monitoring of
the palms that receive applications of EFB and treated
POME and uses results from the foliar sampling and FFB
yield to advise on the annual fertiliser requirement.
(4.2.3)
Criterion 4.3: Practices minimise and control erosion

and degradation of soils.
Soil conservation practices are documented in the Sime
Darby Agricultural Manual. The Estates hold copies of
soils maps, which show the dominant soil types are
(Padang Buluh Laterite); (Sg Dingin Laterite 40% of
Estate area and Alluvial 30% of Estate area and the
remainder is a mixture of minor soil types). All of the
land at Padang Buluh is flat. Sg Dingin is flat to
undulating with terraces on 30% of the area.
Approximately 10% of Sg Dingin Estate is low lying and
subject to seasonal flooding. Techniques for minimising
soil erosion at the Estates include maintenance of
groundcover vegetation, Ushaped stacking of pruned
fronds, and water conservation pits at roadside drains.
Field inspection confirmed that the soil conservation
practices generally were consistently implemented.
(4.3.1)
The Estates minimise the occurrence of bare soil by
restricting the use of herbicides to the spraying of palm
circles and for selective weeding. Inspection indicated
relatively uniform groundcovers of vegetation consisting
of leguminous cover crop in the immature and young
palms and soft grasses in the older palms. (4.3.2)
A nonconformity was assigned this Minor Compliance
Indicator CR01 refer Section 3.2 Page 20 for details
The Estates have an annual budget for road maintenance
and use a grader to maintain the road camber and drains
for management of rainfall runoff. The Estates have a
readily available source of laterite for resurfacing roads.
Inspection confirmed roads were well maintained with a
durable laterite surface. (4.3.3)
There are no peat soils at SOU1. (4.3.4)
The soil maps of the Estates show there are no fragile or
problem soils at any SOU1 Estates. (4.3.5)
Criterion 4.4: Practices maintain the quality and

availability of surface and groundwater
Page 12
During the original development for rubber, the land

was cleared and planted to the edge of streams. The
Estates have commenced a programme for re
instatement of buffer zones during replanting along
streams, such as Sg Jerong and Sg Dingin (Plate 1). The
Estates have prepared maps showing the locations of
buffer zones for future reinstatement during replanting.
Field inspections confirmed the buffer zones have been
marked to show the palms for future removal. At these
riparian areas herbicide spraying and fertiliser
application have been ceased and the palm circles are
maintained by manual weeding and raking. (4.4.1)
Plate 1: Riparian Buffer Strip Established at Replanting
There are no manmade structures across any

waterways in the Estates. (4.4.2)
The Mill and Estates have recently (2009) commenced a
programme to sample outgoing water into the main
natural waterways. The 4 June 2009 results at Padang
Buluh show Class 1 water quality in relation to pH, BOD,
TSS, Ammonia and Phosphorous.
The Mill has implemented monthly sampling of water
quality upstream and downstream of the Mill with the
most recent water sampling 23 June 2009 showing Class
1 water quality. (4.4.3)
The Estates measure daily rainfall and records have been
maintained for more than thirty years. Rainfall
information is used for crop forecasting and timing of
fertiliser applications. (4.4.4)
The Mill measures water usage and reports monthly
against a target to Sime Darby Head Office. Water usage
has exceeded 15 t/t FFB during the past twelve months
due to the requirement for the boiler grate cooling
system. The boiler grate cooling fan failed and a
replacement is being shipped from Germany. In the
interim, it is necessary to use raw water for cooling the
boiler grate and this has increased water consumption.
(4.4.5)
The Estates are mostly bordered by oil palm. Where
forest reserves occur along the boundaries of Sg Dingin,
Jentayu and Anak Kulim Estates, the forest reserves
occur on hillsides above the Estates and drainage occurs
from these protected areas into the Estates. There is no
drainage from the Estates into protected areas. (4.4.6)

The Estates have prepared Water Management Plans

that focus on water conservation practices in the field
and include, for example, roadside turnout drains that
discharge into conservation pits. At sloping areas,
pruned palm fronds are stacked along the contour to
reduce surface runoff and allow more infiltration of
water. Rainwater harvesting has been installed at the
roof catchments of workshops and is planned for the
fertiliser stores and worker housing.
The Mill has a Water Management Plan that describes
the sources, treatment and uses of water. The Mill has
implemented recycling 20% of water from treated POME
for hydrocyclone dilution water and for floor cleaning.
(4.4.7)
Criterion 4.5: Pests, diseases, weeds and invasive

introduced species are effectively managed using
appropriate Integrated Pest Management (IPM)
techniques.
IPM is documented in the Sime Darby Agricultural
Reference Manual Section 15. IPM involves inspection
and monitoring of field conditions prior to any treatment
using chemicals for weed and pest control. (4.5.1)
The major palm pest is rats that are controlled using
Barn Owls and, when necessary, baiting. Beneficial
plants (Turnera subulata, Cassia cobanensis and
Antigonon leptopus) have been established along 20% of
the Estate roadsides for control of bagworm (Plate 2).
Following the establishment of beneficial plants,
chemical treatment has not been required at Padang
Buluh since May 2006. At Sg Dingin Estate chemicals
have not been necessary for control of bagworm. (4.5.2)
Plate 2: Beneficial Plants along Estate Road
Padang Buluh and Sg Dingin Estates hold records for

each field where pesticides, such as rat baits, have been
applied, with records available from the Stores Cost
Book since 2004. (4.5.3)
The Estates have calculated pesticide usage for the past
5 years. The results (Figure 5) show the usage increased
sharply during 2007 due to a program to control woody
plants using Ally and then the usage decreased in
2008. (4.5.4)
Page 13
Figure 5: Pesticide Usage Toxicity Units 20042008
Criterion 4.6: Agrochemicals are used in a way that

does not endanger health or the environment. There is
no prophylactic use of pesticides, except in specific
situations identified in national Best Practice
guidelines. Where agrochemicals are used that are
categorised as World Health Organisation Type 1A or
1B, or are listed by the Stockholm or Rotterdam
Conventions, growers are actively seeing to identify
alternatives and this is documented.
The quantity of chemical and treatment required is
documented in Section 165 of the Agricultural
Reference Manual. The selection of the type and
quantity of chemical to apply is based on inspection of
field conditions prior to spraying. At SOU1, woody
plants are controlled by manual weeding. Herbicides are
used for spraying the circle at the base of palms. The
quantities of chemicals to be measured for premixing
into 20 Litre containers are displayed as a Work
Instruction (April 2009) at the Pesticide Store (Plate 3).
(4.6.1)
Plate 3: A Well Designed Pesticide Mixing Area
Sime Darby Central Purchasing Department controls

purchase of pesticides. Inspection of chemical stores
confirmed that only pesticides registered by the
Pesticides Board are held. For example at Sungai Dingin,
only four chemicals were stored. (4.6.2)
Inspection confirmed the Pesticides Store meets
regulatory requirements with respect to spill
containment, security, ventilation, separation and
labeling of chemicals. Containers of premixed
chemicals, such as any remaining unused spraymix are
stored in a secure, locked enclosure adjacent to the
Pesticide Store. (4.6.3)

Inspection of the chemical store and chemical mixing

area showed chemical labels are in Bahasa Malaysia.
MSDSs were displayed at the chemical store in both
English and Bahasa Malaysia. (4.6.4)
CHRA medical surveillance has been carried out by a
DOSH registered doctor on 20 June 2009 for 10 pesticide
operators at Padang Buluh Estate and at Sg Dingin Estate
on 18 May 2009 for 12 pesticide operators and 14 July
2009 for 8 pesticide operators. The medical reports
findings concluded all pesticide operators were fit for
duty. (4.6.5)
The Hospital Assistant confirmed that the Sime Darby
policy has been implemented and female pesticide
operators are transferred to other duties when pregnant
or breastfeeding. Interview of female pesticide
operators confirmed that if they wished to continue
working when pregnant they were transferred to other
duties and were not permitted to return to work as
pesticide operators until they had ceased breastfeeding.
(4.6.6)
At Padang Buluh, Methamidophos has been used for
treatment of Bagworm infestation but only on the basis
of pest census information and a permit from Agriculture
Department. World Health Organisation Type 1A and
Type 1B chemicals have not been used at Padang Buluh
since May 2006. Inspection of the Chemical store and
stock records confirmed no World Health Organisation
Type 1A or Type 1B chemicals are held. Chemical
treatment for Bagworm has not been necessary at Sg
Dingin. Paraquat usage ceased at SOU1 in June 2007.
(4.6.7)
Aerial spraying is not carried out at SOU1. (4.6.8)
Buyers have not requested CPO testing for chemical
residues. (4.6.9)
Records (Stores Cost Book) are held for each field where
pesticides have been used with records available for
more than five years. (4.6.10)
Criterion 4.7: An occupational health and safety plan is

and
documented,
effectively
communicated
implemented.
(a) The Mill and Estates have a Safety and Health Policy
that was approved by Sime Darby Top Management
in April 2008. Inspection showed the Policy was
prominently displayed on notice boards at offices
and muster areas. The Policy is communicated to
staff, workers and contractors during regular
awareness sessions, such as morning muster at the
Estates and at preshift meetings at the Mill.
Inspections of workplaces at the Mill, Padang Buluh
Estate and Sungai Dingin Estate, interviews of
workers, observation of tasks and review of audit
reports, indicated safety is a priority and the Policy is
being implemented.
(b) Risk assessments (HIRAC) have been carried out for
the field tasks at the Estates as well as the
maintenance workshop and office. The Mill risk
assessment covers the tasks and hazards at each
Page 14
work station from Reception through to Product

Despatch. HIRAC was carried out at Padang Buluh
Estate November 2008 and revised June 2009; Sg
Dingin Estate February 2009 and updated 23 June
2009; and the Mill February 2009.
(c) The Mill has an OSH Training Programme January
December 2009 that includes toolbox briefings on
safety related to work stations.
The Mill operates a permit to work system for Mill
maintenance workers and contractors, which
requires safety briefings prior to commencement of
any work.
The Estates have prepared an Annual Training
Programme July 2009June 2010 covering elements
ranging from safety regulations through to safe
driving techniques, work practices and reporting of
incidents.
In relation to transport, all drivers (tractors, trucks
and motorcycles) are required to be licensed and to
undergo training in defensive driving. SOU1 has
installed speed humps throughout the estates and
near intersections to control speed. Road safety
rules (wearing of helmets, seatbelts and speed
limits) are displayed on notice boards at the
entrance to the estates and at muster areas. The
Estates monitor and enforce adherence to road
safety rules by staff, workers, contractors and their
families.
In relation to the use of pesticides, the Training
Programme includes a schedule for PPE, spraying
methods, spray equipment maintenance and triple
rinsing and safe disposal of used containers.
i. Inspection of training records showed that pesticide
operators have received training in the safe use of
pesticides. Sg Dingin carried out training for 29
pesticide operators 23 June 2009 on use of PPE.
Training at Padang Buluh Estate for pesticide
operators was carried out 01 July 2009 in safety
procedures for chemical mixing.
ii. Inspection of spraying operations in the field showed
that pesticide operators were aware of the
precautions associated with each of the products
being used and that they were working safely.
(d) Inspection of Stores issue records and observation of
tasks confirmed appropriate PPE is supplied to
workers and was being worn correctly.
i. Appropriate PPE is supplied to field workers and
staff. Pesticide operators are supplied with boots,
apron, gloves, respirator, helmet and safety
spectacles. Records are held of PPE issues made to
individuals since January 2003 (Padang Buluh); June
2006 (Sg Dingin). The Mill supplies all workers with
safety shoes, helmet, safety vest and hearing
protection plus other relevant PPE specific to
workstations.
(e) The Hospital Assistant is the person responsible for
coordinating safety at Padang Buluh Estate. The
Senior Assistant Manager is the OSH Coordinator at
Sg Dingin Estate. The Senior Assistant Manager is
the person responsible for safety coordination at the
Mill.
(f) Safety Committee Meetings are held quarterly with
the most recent (Padang Buluh Estate 8 May 2009

with 27 attendees including signatures); (Sg Dingin

Estate 29 April 2009 with 10 attendees including
signatures.) The outcomes of meetings are
communicated to workers by the Assistant Manager
at Muster Briefing, as well as by worker
representatives. The Mill holds monthly safety
committee meetings with the most recent 29 June
2009 attended by 17 persons.
(g) The ERP for the Estates was revised in May 2009
with updated emergency contacts. Interview of
Mandores indicated they understood the action to
be taken in case of an emergency, such as an
accident in the field. The Mill ERP was revised 15
June 2009 for fire, accident, CPO/effluent spills, and
emergency contacts were updated. All Visitors to
the Mill and Estates are required to undergo a safety
briefing that includes emergency response
procedure. Inspections of work places confirmed
emergency exits and assembly areas were clearly
marked. The Mill carried out a fire drill in April 2009
and the Safety Coordinator prepared a report on
areas that required improving.
h) First aid training was conducted at Padang Buluh on
8 May 2009 for 27 OSH Committee Members. Sg
Dingin Estate carried out first aid training and
Cardiopulmonary Resuscitation on 20 May 2009 for
31 staff and field supervisors.
i) Inspection of Padang Buluh and Sg Dingin Estates
confirmed firstaidkits are issued to Workshops,
Mandores, Main Office and Security Offices. The Mill
has firstaid equipment located at 8 workstations.
Inspection confirmed the first aid kits had recently
been restocked. (4.7.1)
All accidents are investigated and reported immediately
to the Sime Darby Regional Safety Officer. Summaries of
accidents are reported monthly to Sime Darby OSH
Department and to DOSH. Accidents are discussed and
reviewed at monthly SOU meetings. At Padang Buluh,
the last accident occurred 5 March 2009 and there were
3 LTAs in the 2008/2009 reporting period and a total of
28 lost days. Sg Dingin Estate has records for 2 years
that show 5 accidents and 54 lost days in 2007/08 and 2
accidents with 11 lost days in 2008/09.
The Mill recorded 6 lost time accidents in 200809 with a
total of 176 lost days. The large number of lost days
recorded at the Mill in 2008/09 was due to two serious
accidents that occurred during construction of a new
boiler. Commencing in January 2009, the Mill has
implemented a Permit to Work system and a LockOut
TagOut system in order to reduce the frequency of
accidents. The Permit to Work applies to all work
associated with confined spaces, electrical, mechanical
valves, conveyors, height > 2m and hot work. Permits
are issued daily for all new work as well as for ongoing
work. The LockOutTagOut system applies to all
electrical, confined spaces and mechanical valve work.
(4.7.2)
Malaysian staff and
Insurance. Foreign
Insurance Berhad,
FW011956, Padang
workers are covered by SOCSO

workers are covered by RHB
Sg Dingin Estate: Policy No:
Buluh Estate: Policy Number:
Page 15
FW011985 Sg Dingin Mill: Policy number FW011975,

with expiry for all Policies 30 June 2010. (4.7.3)
Criterion 4.8: All staff, workers, smallholders and

contractors are appropriately trained.
Sime Darby Head Office prepares a formal training
programme for Executives and Staff. The Mill has
prepared a Training Plan (January 2009) for each
workstation that lists the topic and schedule. The Mill
maintains records of training for individuals, including
the results of competency assessment at completion of
training. For example electrical training for chargeman
and wireman was carried out 7 July 2009 for 5
employees of Sg Dingin Mill and 12 from neighbouring
Sime Darby Mills.
The majority of training at the Estates is informal on
thejob instruction that is based upon the need
identified for particular tasks. For example, if an
Assistant identifies the need for instruction for an aspect
of harvesting during field inspection, then he will deliver
the training onthespot to correct the situation. SOU1
has an overall Training Plan 2009/10 for the Estates,
which details a schedule for skills training for the various
field tasks. The Estates maintain records in a diary of the
awareness training topic conducted during muster
briefings. (4.8.1)
Criterion 5.1: Aspects of plantation and mill

management, including replanting, that have
environmental impacts are identified, and plans to
mitigate the negative impacts and promote the positive
ones are made, implemented and monitored, to
demonstrate continuous improvement.
Sg Dingin and Padang Buluh Estates have identified
significant impacts using a risk assessment process that
was completed 1 April 2009. The risk assessment process
considered the positive and negative impacts and was
facilitated by Sime Darby TQEM staff. For the impacts
that were assessed as having a risk greater than a pre
determined risk score, an Environmental Improvement
Plan was prepared.
The Mill also has identified environmental aspects and
impacts using a risk assessment process and a register
(28 November 2008) is available. The initial assessments
will be due for review in November 2009 and April 2010
at the Mill and Estates respectively. (5.1.1)
The Mill has prepared an Environmental Management
Plan. Improvements are identified in the 2009/10 capex
budget, for example installation of an additional
sterilizer condensate oil recovery tank. The Estates have
prepared improvement plans based on the results of the
risk assessment and the Stage I RSPO Assessment.
Examples are the upgrading of chemical storage and
mixing areas, vehicle washdown bay for control of
sediment (point source pollutants). Inspections
confirmed that the Mill and Estates have made
significant improvements since the Stage I Assessment
with respect to control of point source pollutants.
(5.1.2)
Criterion 5.2: The status of rare, threatened or

endangered species and high conservation value

habitats if any, that exist in the plantation or that could

be affected by plantation or mill management, shall be
identified and their conservation taken into account in
management plans and operations.
All of the arable land within the Estates has been cleared
for agriculture during the early years of development.
Sime Darby TQEM Department carried out a Biodiversity
Assessment of the SOU1 Estates in May 2009. HCV was
assessed using the guidance of the International HCV
Toolkit. HCV 4 was identified at riparian areas and
unplanted reserves. HCV 6 includes a graveyard at
Padang Buluh Estate and places of worship. The TQEM
Ecologist has met with Forestry Department Officers
who have identified the possible presence of tigers at
the Gunung Inas and Sungkup Para Forest Reserves that
border the Estates. The Sime Darby TQEM Team
assigned HCV 1 to these forest reserves.
Sg Dingin Estate shares a boundary with Gunung Inas
Forest Reserve along a length of approximately 20km
(Plate 4). Inspection showed this is a loggedover forest
with Dipterocarp species present, such as Shorea spp.
Interview with the Forest Department Ranger indicated
the possible presence of tigers, with the most recent
sighting by local people in 2007. During the inspection
of Sg Dingin Estate, the BSi Technical Expert Ecology
heard the call of the Great Argus (Argusianus argus).
Plate 4: Gunung Inas Forest Reserve

Bordering Sg Dingin Estate
Anak Kulim Estate adjoins the Gunung Bongsu Forest

Reserve along a length of approximately 1km. This
forest consists of secondary regrowth and planted
species of Pine Pinus insularis. The BSi Technical Expert
Ecology recorded only species common to disturbed
habitat, such as Bulbul and Tailor birds at the Gunung
Bongsu Forest Reserve.
Jentayu Estate adjoins the Sungkup Para Forest Reserve
along a length of approximately 10km. This forest is
undisturbed with the dominant species Dipterocarp,
such as Shorea spp, Dipterocarpus spp and Hopea spp.
In 2008, the Jentayu Estate Manager observed the tracks
of a tiger at oil palm adjacent to this Forest Reserve. The
Forestry Department has planted an area of 16ha of the
Jentayu Estate land with indigenous and other tree
species. (5.2.1)
Illegal logging at the Gunung Inas Forest Reserve is
causing sedimentation of a Sg Dingin tributary. Other
threats include the taking of fauna by intruders.
Page 16
Sime Darby TQEM Ecologists have prepared a

Management Plan for the conservation of HCV habitats
that is considered appropriate. The Plan focuses on the
protection of the Forest Reserves bordering the Estates
from intrusion by outsiders by preventing access through
the Estates. The SOU presently has an informal
relationship with the Department of Forestry and
contact generally is limited to the Estate notifying the
Department when it becomes aware of situations of
illegal intrusion into the Forest Reserve. The
Management Plan also includes protection and
enhancement of riparian buffer zones within the Estates.
(5.2.2)
The Estates have installed signs at the main entrance
roads prohibiting hunting, fishing and gathering. In
addition, awareness has been conducted for staff and
workers on the protection of fauna and flora. Interviews
of workers confirmed understanding of the rules
prohibiting hunting and fishing. (5.2.3)
Criterion 5.3: Waste is reduced, recycled, reused and

disposed of in an environmentally and socially
responsible manner.
Wastes and sources of pollution are identified in the
Environmental Aspects and Impacts Registers for the Mill
and the Estates. For example, the Aspects and Impacts
Register considers the impacts of emissions to air,
discharges of liquid effluents and disposal of solid
wastes. In addition to the Aspects and Impacts Register,
the Mill and Estates have prepared a Waste
Management Plan. (5.3.1)
The Waste Management Plan lists each type of waste
generated, the storage and disposal method and the
person responsible for implementation. Palm by
products are the largest quantity of waste generated and
these are recycled to the field where practical. Fibre and
nut shell are used as fuel in the mill boiler and EFB is
recycled to the field as mulch.
Inspection of the mill confirmed that appropriate
bunkers had been constructed for temporary storage of
solid wastes such as EFB, fibre and boiler ash. The Mill
had installed drain covers to prevent spilled solids such
as boiler ash from entering the monsoon drain system.
The Mill and Estates have constructed appropriate
Scheduled Waste Stores that are secure and include spill
containment. Inspection showed the scheduled waste
stores were well maintained, with labeling of all stored
materials, such as spent lubricating oils and used
chemical containers, and the inventory was kept up to
date. SOU1 has engaged the DOE licensed contractors
TexCycle Sdn Bhd (DOE licence No 000500) and Aliran
Segar Sdn Bhd (DOE licence No 000395) for collection
and disposal of scheduled wastes. (5.3.2)
Observations 7 & 8 refer Section 3.2 Page 21 for details
Inspection confirmed that EFB and POME are recycled to

palms. Pruned fronds are stacked along palm rows.
(5.3.3)
Criterion 5.4: Efficiency of energy use and use of

renewable energy is maximised.
The Mill monitors energy usage and reports information
on renewable and nonrenewable energy monthly to
Top Management. The Mill is implementing an energy
optimisation plan that is based on maximising the use of
renewable fuel for electricity generation. For example,
the steam turbine supplied 94% of electricity used at the
Mill during peak crop in June 2009. (5.4.1)
The Mill and Estates monitor and report diesel fuel
usage monthly to Top Management. Trend information
showed diesel fuel supplied 6% of electricity at the Mill
during peak crop and up to 20% during low crop. The
electricity supply for housing at the Estates is obtained
from the Government network. (5.4.2)
Criterion 5.5: Use of fire for waste disposal and for

preparing land for replanting is avoided except in
specific situation, as identified in the ASEAN guidelines
or other regional best practice.
The company has a zero burning policy, which is
displayed on signboards at the entrances to the Estates
and the Mill. (5.5.1)
Inspection of a replanted area at Padang Buluh Estate
confirmed the previous crop had been chipped and
placed at the palm interrow for mulch. There are no
recently replanted areas at Sg Dingin Estate. (5.5.2)
The areas inspected at the Mill, Estates and housing did
not find any evidence of fire being used for waste
disposal at the SOU. (5.5.3)
Criterion 5.6: Plans to reduce pollution and emissions,

including greenhouse gases, are developed,
implemented and monitored.
As outlined at Criterion 5.1, the Mill has an
Environmental Management Plan for 200910 that
includes pollution prevention actions related to waste
management. Initially, the Mill and Estates have focused
on pollution prevention from point sources.
Improvements have been implemented, such as the
installation of sediment and oil traps on drains. The next
stage of pollution prevention is aimed at waste
reduction. An example at the mill is the installation of
an additional steriliser condensate oil recovery tank.
Installation of this equipment should reduce oil loss to
mill effluent. Sime Darby is presently evaluating the
performance of biogas collection from mill effluent
treatment at one of its mills and cogeneration of
electricity. Depending upon the results of the
evaluation, Sime Darby will consider implementation of
biogas recovery at Sungai Dingin Mill for emission
reduction. The Estates have prepared a Pollution
Prevention Plan (May 2009) for control of point source
pollutants from workshops, pesticide storage and mixing
areas and waste disposal. (5.6.1)
The Mill and Estates Pollution Prevention Plans are
reviewed annually as part of the budget process.
(5.6.2)
There are no peat soils at SOU1. (5.6.3)
Page 17
Criterion 6.1: Aspects of plantation and mill

management, including replanting, that have social
impacts are identified in a participatory way, and plans
to mitigate the negative impacts and promote the
positive ones are made, implemented and monitored,
to demonstrate continuous improvement.
TQEM carried out an SIA in May 2009 that involved
interviews of stakeholders including Estate and Mill staff
and workers, representatives of local kampungs,
government officers, school teachers and police,
contractors, suppliers and neighbouring small farmers.
The SIA includes a summary of issues raised, attendance
records and notes of the meetings. (6.1.1)
An attendance list was recorded including signatures for
each of the SIA meetings, for example at Sungai Dingin,
44 persons were interviewed in meetings on 5 May
2009. When interviewed by BSi Assessors, staff,
workers, kampung Leaders, religious leaders and local
residents confirmed they were consulted during the SIA
preparation process. (6.1.2)
SOU1 has prepared a Management Plan on Social Impact
Assessment (May 2009) in consultation with the Mill and
Estate Managers. The Plan includes a description of
each issue raised by stakeholders, proposed mitigation
measure, status of implementation, person responsible
and target completion date. For example, the Kg Sg
Dingin Imam suggested that the Mill should provide
transport for all workers to attend Friday prayers at the
Mosque. The Mill and Estates have responded by
making transport available on request. (6.1.3)
Criterion 6.2: There are open and transparent methods

for communication and consultation between growers
and/or millers, local communities and other affected or
interested parties.
Sime Darby has documented procedures for internal and
external communications. For example, the External
Communication Procedure is documented in the form of
a flow chart in appendix 5 of the Sime Darby Plantation
Estate Quality Management System. Copies of the
Procedure were available at the Mill and both of the
Estates assessed. When interviewed, staff were found to
be familiar with the communication procedures and the
system for recording details. Interviews of Community
Leaders indicated there is a close relationship and good
twoway communication with the Estates, except in
relation to Ulu Mahang that is farthest from the Estate
Office. (6.2.1)
Managers and Assistants are responsible for
communications related to their operating areas.
Interviews of Community Leaders and Local Stakeholders
indicated they are comfortable with approaching
Managers to raise issues. (6.2.2)
The Mill and Estates have prepared a list of stakeholders
(April 2009) for suppliers, contractors, government
departments,
and
local
kampung
heads.
Communications with Estate stakeholders are recorded
in a book, together with details of actions taken. (6.2.3)

Criterion 6.3: There is a mutually agreed and

documented system for dealing with complaints and
grievances, which is implemented and accepted by all
parties.
Sime Darby has a documented Grievance Procedure in
the form of a Flow Chart Appendix 5 of the Sustainable
Plantations Management System Manual. The Mill and
Estates have implemented a Log Book system for
recording complaints from Staff and Workers, the action
taken and the date the issue was resolved. Inspection of
the log books showed that entries mainly related to
requests for minor repairs to houses and these were
usually attended to within a week. (6.3.1)
Interviews of local leaders indicated there have been no
recent disputes that have required negotiation or
settlement through a formal process. To date, local
stakeholders have raised complaints directly with SOU1
Management and have resolved issues through
discussion. Staff and workers generally raise issues
directly with their Supervisor and they are either
resolved or referred to a Manager. (6.3.2)
Sime Darby Policy is to make the dispute resolution
system available to any affected parties. (6.3.3)
Criterion 6.4: Any negotiations concerning

compensation for loss of legal or customary rights are
dealt with through a documented system that enables
indigenous peoples, local communities and other
stakeholders to express their views through their own
representative institutions.
Sime Darby has implemented a procedure for handling
land disputes, including boundary and squatter issues.
The SOU1 operations all are on Freehold Land and there
has not been any land dispute or acquisition of
Customary Land. (6.4.1)
The land dispute procedure refers the compensation
assessment to the Corporate Land Management and
Legal Department of Sime Darby who assess and advise
on compensation. (6.4.2)
SOU1 maintains detailed records of issues related to the
land titles. (6.4.3)
Criterion 6.5: Pay and conditions for employees and for

employees of contractors always meet at least legal or
industry minimum standards and are sufficient to
provide decent living wages.
Pay and conditions are documented in MAPA/AMESU
Agreement 2006 and MAPA/NUPW Field and Other
General Employees and Fringe Benefits Agreement 2007.
Copies of the Agreements were available on site. (6.5.1)
Interview of female staff and workers confirmed their
awareness of Policies and entitlements, such as annual
leave, sick leave and maternity leave. Staff and workers
had signed a Letter of Appointment and understood
Terms and Conditions and pay slips. Workers
interviewed stated that correct remuneration was
received for any overtime hours worked. (6.5.2)
Page 18
The Mill linesite was built in 2005 and the houses have
three bedrooms. Padang Buluh Linesite was constructed
in the early 1990s and houses have only two bedrooms.
There is an approved budget to replace substandard
housing, with 24 houses being built during 2009/10.
There is an approved budget to refurbish Sg Dingin
Estate housing with some houses already completed.
Commencement of refurbishing of the remainder will
begin in 2009/10.
The Mill supplies electricity to the Mill housing with
monthly usage above RM20 charged to individual
residents. Electricity to the Estates housing is from the
Government supply with usage above RM20 charged to
residents.
Water supplies to Mill and Estates housing is from the
Government supply. The exception is Sg Dingin domestic
water supply, which is sourced from a spring and stored
in tanks in the ceiling of individual houses. The
Government Health Department tested the Sg Dingin
water supply on 23 March 2009 at the source and after
treatment at housing. The results confirmed the
suitability of water for drinking.
Each Estate operates a medical clinic staffed by an
experienced and trained Hospital Assistant and female
Nurse. Interviews of female staff, workers and residents
confirmed there were no issues associated with the
operation of the clinics. Inspections of the clinics
confirmed that adequate stocks of medicines were
available and that medical treatment is available at the
company clinic to all staff, workers and their families at
no cost. If referral is given by the Hospital Assistant for
specialist treatment at the Government Clinic/Hospital,
SOU1 provides transport to the sick employee or
dependant, and makes reimbursement for all costs,
including transport where this is arranged by the
employee. The Visiting Medical Officer attends SOU1
Clinics weekly and records of visits are held at the Clinics.
Primary and Secondary schools are located at Mahang
approximately 5 km distance from Sg Dingin Mill housing
compound. Padang Buluh Estate has a Government run
Tamil School on site with primary and secondary schools
located 4km and 16km distance, respectively. Public
transport is available for children to access schooling and
SOU1 subsidises transport costs. (6.5.3)
A nonconformity was assigned this Minor Compliance
Indicator CR02 refer Section 3.2 Page 20 for details
Criterion 6.6: The employer respects the right of all

personnel to form and join trade unions of their choice
and to bargain collectively. Where the right to freedom
of association and collective bargaining are restricted
under law, the employer facilitates parallel means of
independent and free association and bargaining for all
such personnel.
Sou1 holds copies of Minutes of Meetings with NUPW
Kedah Branch Representatives. The NUPW became
established within the Mill during 2008. The most recent
meeting between SOU1 and the Union was 6 February
2009. In addition to formal meetings with the Union,
issues are discussed at quarterly OSH Meetings and
recorded in the minutes. For example, OSH Meeting at
Sg Dingin Estate 29 April 2009 discussed one worker
issue. (6.6.1)

Sime Darby has a statement on Freedom of Association

that is documented in the Social Policy approved by Top
Management April 2008. Copies of the Social Policy were
displayed on notice boards at offices and muster areas.
Interview of staff and workers confirmed they were free
to join a Union if they so wish. The NUPW Kedah Branch
also confirmed workers were allowed to join the
Workers Union. (6.6.2)
Criterion 6.7: Children are not employed or exploited.

Work by children is acceptable on family farms, under
adult supervision, and when not interfering with
education programmes. Children are not exposed to
hazardous working conditions.
The minimum working age is 18 under the Labour
Ordinance. At the time of hire the Mill and Estates check
the age of applicants from ID Card for local hires and
Passports of foreign workers. Foreign workers are
recruited centrally by Head Office and after processing
of documentation through Department of Immigration
are allocated to the Estates. Inspection of personnel
records confirmed there are no underage workers.
During the site inspections, children and underage
workers were not observed at any workplace. (6.7.1)
Criterion 6.8: Any form of discrimination based on race,

caste, national origin, religion, disability, gender, sexual
orientation, union membership, political affiliation or
age, is prohibited.
A statement on Equal Opportunities is included in the
Sime Darby Social Policy approved by Top Management
April 2008. Copies of the Policy are displayed on Notice
Boards at the Offices and Muster areas at the Mill and
Estates. (6.8.1)
Inspection of a sample of pay records and Interview of
staff and workers confirmed there is no discrimination.
(6.8.2)
Criterion 6.9: A Policy to prevent sexual harassment

and all other forms of violence against women and to
protect their reproductive rights is developed and
applied.
A statement to prevent sexual harassment and violence
is documented in the Sime Darby Social Policy approved
by Top Management April 2008. Interview of female
Staff and Workers confirmed their knowledge of the
Policy and they stated there were no issues of concern.
A Gender Committee has been formed and the first
meetings were held: Mill 8 May 2009 with 14 Attendees;
Padang Buluh 8 May 2009 with 12 Attendees; and Sg
Dingin Estate 8 June 2009 with 9 attendees. (6.9.1)
The Social NGO Tenaganita has facilitated preparation of
Sime Darbys Grievance Procedure. The Gender Policy
Manual, which includes the grievance mechanism has
been distributed to the Mill and Estates at SOU1.
Interview of female staff and workers indicated they
were aware of the Procedure for raising any issues of
concern. (6.9.2)
Page 19
Criterion 6.10: Growers and mills deal fairly and

transparently with smallholders and other local
businesses.
SOU1 does not process any crop from smallholders or
outside suppliers. (6.10.1)
SOU1 does not process any crop from smallholders or
outside suppliers. (6.10.2)
Interviews of Contractors and Suppliers confirmed that
they understand contractual agreements. A number of
Suppliers of equipment and materials have worked with
the company for more than 20 years and indicated they
had a good relationship and were treated fairly. (6.10.3)
Interviews of contractors indicated that payments are
made in a timely manner and they did not have any
complaints. (6.10.4)
Criterion 6.11: Growers and millers contribute to local

sustainable development wherever appropriate.
Infrastructure and Government Services are well
developed and readily accessible in the area. There are
13 Tamil and 4 Malay primary schools located on the
Estates of SOU1. The majority of the students are from
neighbouring communities. SOU1 makes contributions
to local schools for sports days and places of worship for
religious festivals. If residents from surrounding
Kampungs attend company Clinics they will be treated
and only charged for the medicines supplied. (6.11.1)
Principle 7: Responsible Development of New Plantings
SOU1 has not carried out any new oil palm developments
and there are no plans for expansion of plantings.
Principle 7 is not applicable to this Assessment.
Criterion 8.1: Growers and millers regularly monitor

and review their activities and develop and implement
action plans that allow demonstrable continuous
improvement in key operations.
The SOU has implemented IPM techniques to reduce
chemicals usage. World Health Organisation Type 1A
and Type 1B chemicals have never been used at Sg
Dingin Estate and have not been applied at Padang
Buluh Estate since May 2006. At Padang Buluh chemical
treatment of Bagworm infestation has been made only
on the basis of pest census information and a permit
from Agriculture Department. Paraquat usage ceased at
the SOU in June 2007. (8.1.1)
The Mill and Estates have documented Environmental
Management Plans and significant improvements are
being implemented. The Mill has constructed a system
to collect all drainage from the EFB stockpile area and
transfer to the effluent treatment ponds. The Estates
inspected are making progress on the reinstatement of
riparian buffer zones before replanting and have ceased
application of chemicals at the demarcated areas.
(8.1.2)
An Operational Plan has been documented that lists
each type of waste generated, storage and disposal
method, for example, recycling, placement in a landfill or

consignment to a schedule waste contractor. Recycling

of palm byproducts is well implemented and records
are available of the quantities applied to the Estates.
The Mill and Estates have recently implemented
segregation and recycling of schedule wastes to licenced
contractors. (8.1.3)
The Mill and Estates have implemented systems for the
collection and treatment of drainage from workshops
and chemical usage areas to minimize the discharge of
point source pollutants. (8.1.4)
SOU1 has prepared a Management Plan for addressing
the social issues raised during the Social Impact
Assessment. The Local community representatives
commented that they appreciated being consulted on
the social assessment conducted by the TQEM Team.
Although local communities did not identify any major
issues, SOU1 plans to hold subsequent meetings to build
on the already good relations. (8.1.5)
The Sime Darby Management Review process shares
information on best practices for performance
improvement. TQEM has requested SOUs to record
information on expenditure related to social and
environmental aspects. (8.1.6)
3.2 Detailed Identified Nonconformities,
Corrective Actions and Auditor Conclusions

Two (2) Nonconformities were assigned to Minor
Compliance Indicators 4.3.2 and 6.5.3
SOU1 has prepared a Corrective Action Plan for
addressing the identified Nonconformities. The Audit
Team has reviewed and accepted SOU1 Corrective
Action Plan.
SOU1 has made a commitment to implement corrective
action for addressing the Minor Nonconformities
immediately following the Certification Assessment. The
effectiveness of corrective action will be checked at the
Surveillance Assessment that will be scheduled within
twelve months of RSPO approval of the Initial
Certification.
CR01: 4.3.2 Avoid or minimise bare or exposed soils
within estates
A Nonconformity was assigned as field inspection
showed that there is some overspraying with CDA
sprayers as the technique differed from the work
instruction. This resulted in enlarged palm circles, and
reduction of groundcover vegetation.
addressing the identified nonconformity that involves:
Training CDA (controlled droplet application) sprayers to
spray correctly to ensure palm circle size is consistent
with the work instruction. Training is to be conducted by
staff and executives in the place of work followed by
close supervision during spraying operation.
Page 20
CR02: 6.5.3 Growers and millers provide adequate
housing, water supplies, medical, educational and
welfare amenities in accordance with Workers
Minimum Standard of Housing and Amenities Act
1990 (Act 446) or above, where no such public facilities
are available or accessible (not applicable to
smallholders).
A Nonconformity was assigned as inspection of a sample
of houses at Sg Dingin Estate and interview of residents
indicated that requests for repairs at the houses yet to be
refurbished are not being carried out, such as missing
handles/locks and broken hinges on entry doors, a
leaking toilet cistern and a leaking water storage tank in
ceiling.
addressing the identified nonconformity as follows:
The houses will be inspected and all repairs will be
carried out and completed by 24 August 2009.
Progress toward resolution of the issue will be followed
up by BSi Assessors at the Surveillance Assessment.
Observations/Opportunities for Improvement

Eleven
(11)
Observations/Opportunities
for
Improvement were identified. The progress with the
Observations/Opportunities for Improvement will be
checked at the Surveillance Assessment visit scheduled
in 2010.
01 (2.1.1) DOE has requested ambient air quality and
boundary noise levels be tested following
completion of upgrading of the Mill capacity.
02 (4.3.1) The terraces that were constructed for the
2000 replanting at Sg Dingin Main Division did not
have a backslope for water storage and control of
rainfall runoff. Small erosion gullies have formed at
points of runoff concentration on the outer faces of
several of the terraces inspected. Improvement of
control measures, such as greater attention to
selective placement of pruned fronds, is required to
prevent erosion.
03 (4.4.1) At selected locations along stream banks
such as Sg Jerong, where presently only grasses and
shrubs are growing, there is an opportunity to
commence the reinstatement of the buffer zone by
planting of native tree species.
04 (4.6.5) Sungai Dingin has scheduled the remaining
15 pesticide operators to have CHRA health checks
during August 2009.
05 (5.2.2) Protection of the Forest Reserves could be
strengthened by a closer relationship with Forestry
Department, removing former logging roads that
provide access into the Forest Reserves and
implementing regular patrols and reporting on any
illegal activities.
Progress toward resolution of the issue will be followed

up by BSi Assessors at the Surveillance Assessment.

Page 21
06 (5.2.3) Specialist input should be sought from

Department of Forestry on conducting awareness for
staff, workers and local communities on protecting
the forest reserves and avoiding humanwildlife
conflict.
07 (5.3.2) The Mill has installed covers on the monsoon
drains to prevent fibre and ash from entering the
drains and plans to replace the existing grates with
covers around the remainder of the Press Station
building.
08 (5.3.2) Sg Dingin landfill location in an abandoned
laterite quarry is appropriate but operational
management could be improved by restricting the
dumping of materials to a small section of the landfill
to facilitate progressive covering of the discarded
refuse.
09 (6.1.1) The information contained in the SIA could
be improved by providing more detail on the social
setting of the local communities adjacent to the
Estates, such as the history of the Kampungs. This
information could be obtained when visiting and
interviewing Kampung Leaders and residents.
10 (6.2.1) Ulu Mahang representatives commented
they are not included in company activities and
would like to have a closer relationship.
11 (6.5.2) Interview of Foreign workers indicated that
some did not understand full details of Terms and
Conditions of their Contracts. For example, the
recent Labour Department changes to the term of
labour contracts. Periodic awareness sessions would
be helpful to improve and reinforce understanding.
3.3 Noteworthy Positive Components

The Mill effluent treatment plant is well managed
with consistent achievement of target BOD
<100mg/L. The Mill recycles 20% of water from
treated POME for hydrocyclone dilution water and
floor cleaning. This reduces the amount of raw
water required for Mill operation.
Inspection of housing showed residents take pride in
the linesite appearance as indicated by extensive
flower gardens. Residents stated Management
encouraged them to cultivate small vegetable
gardens adjacent to the house. In addition, the
company has implemented a Green Book Project
that involves allocation of 500 square metres to each
household for food gardens. The company also gives
1 fruit tree to each household. Not only does this
beautify the linesite and provide shade to housing,
most importantly, it is of great benefit in reducing
workers daily living costs.

Plate 5: Padang Buluh Estate Worker Linesite
The issue raised by residents during the SIA process

of bats in the ceilings of some houses has been
addressed with ceilings cleaned and access points
sealed. Residents stated they are very happy this
issue has been addressed.
3.4 Issues Raised by Stakeholders and Findings
with Respect to Each Issue
The majority of stakeholders had positive comments

about SOU1. For the situations where stakeholders
raised issues, the companys response is stated below.
Internal Stakeholder Issues
Mill workers stated the toilets were located near the
Office and not at the Mill building.
Company Response: Budget approved 2009/10 for new
changing room, showers and toilets.
Residents at Sg Dingin Mill housing stated there was no

Surau within close proximity.
Company Response: Mill proposes to budget for
construction of a Surau 2010/11
Mill housing residents stated there was no Crche or

playground that families could access.
Company Response: Mill will carry out a survey to
ascertain the number of children of eligible residents. A
Playground will be developed.
External Stakeholder Issues
Local Communities
Local communities did not raise any issues of concern. A
considerable number of local residents work in the Mill
and the Estates and generally have a close relationship
with the Company.
Government
The Department of Forestry confirmed they had a good
relationship with the Estates but needed further support
to prevent illegal logging.

The Department of Labour, Department of Environment

and Department of Occupational Safety and Health did
not raise any issues of concern.
NGOs and Others
World Wildlife Fund for Nature (WWF) Malaysia (Kuala
Lumpur Branch) indicated the possible presence of
Endangered, Rare or Threatened habitat at Forest
Reserves adjacent to the Estates.
Company Response: Although there have been no recent
sightings to confirm Endangered, Rare or Threatened
species, the Estates are working with the Department of
Forestry by monitoring and restricting outsiders access
and activities at the Estates that share a border with
Forest Reserves.
Page 22
3.6 Formal Signoff of Assessment Findings
Signed for on behalf of

Sime Darby Plantation Sdn Bhd (SOU1)
........................................................
Sime Darby Plantation Sdn Bhd (SOU1)
Mr Manokaram a/l Subramaniam
SOU1 Chairman
Manager Bukit Selarong/Kuala Ketil Estates
Date:
2009
3.5 Acknowledgement of Internal Responsibility
Signed for on behalf of

BSi Group Singapore Pte Ltd
SOU1 acknowledges and confirms acceptance of the

Assessment Report contents, including assessment
findings. SOU1 accepts the responsibility for addressing
the opportunities for improvement detailed in the
Assessment Report.
........................................................
Mr Charlie Ross
Lead Auditor
Date:
27 May 2010

Appendix A
Sime Darby Time Bound Plan

RSPO PUBLIC SUMMARY REPORT
SIME DARBY TIME BOUND PLAN
SIME DARBY TIME BOUND PLAN
for SIME DARBY PLANTATION Sdn Bhd

Appendix B
SOU1 RSPO Certificate Details

SOU1 RSPO CERTIFICATE DETAILS
Sime Darby Plantation Sdn Bhd

Ladang Bukit Selarong
09400 Padang Serai
KEDAH DARULAMAN MALAYSIA
Certificate Number :
Certificate Issue Date:
SPO 550179
(RSPO Approval Date)
Website: http://plantation.simedarby.com
Standards: RSPO Principles & Criteria : 2007; Malaysia National Interpretation :

2008
SOU1 RSPO CERTIFICATE DETAILS

SOU 1 Sungai Dingin Palm Oil Mill and Supply Base
Location
Kilang Kelapa Sawit Sungai Dingin, 19700, Karangan, Kedah

Darulaman, Malaysia
Address
PO Box 202, 09700 Karangan, Kedah Darulaman, Malaysia
GPS Location
5 240 N 100 400 E
CPO Tonnage Total
67,492
PK Tonnage Total
14,870
Estate FFB Tonnage
FFB Tonnage supplied by other Sime

Darby Estates
Padang Buluh: 72,461; Sungai Dingin: 60,782;

Bukit Selarong: 38,938; Anak Kulim: 20,191; Bukit Hijau: 34,913;
Sg Dingin Special: 17,514; and Jentayu: 25,810
Holyrood Estate (SOU2): 987; Sg Kerian Estate (SOU2): 1,404;
Somme Estate (SOU2): 83; Tali Ayer Estate (SOU2): 12; Changkat
Salak Estate (SOU3): 77; Kamuning Estate (SOU3): 1,145;
Kalumpong Estate (SOU3): 246
CPO Tonnage Claimed
67,492
PK Tonnage Claimed
14,870
The Tonnage Claimed is the total production from SOU1 Estates and adjacent Sime Dar
by Estates and is
based upon the Reporting Period 01 July 2008 30 June 2009

Appendix C
Certification Assessment Program

SOU1 ASSESSMENT PROGRAM
CERTIFICATION ASSESSMENT PROGRAM
TEAM: CR: Charlie Ross; RR: Robyn Ross; JH: Jarwadi Hernowo; IN: Iman Nawirej
a; BS: Betsy Sunga
DATE
Tuesday
21 July
SUNGAI
DINGIN
MILL
Wednesday
22 July
PADANG
BULUH
ESTATE
TIME
AM
PM
AM
PM
Thursday
23 July
SUNGAI
DINGIN
ESTATE
AM
PM
Friday
24 July
AM
1400
ACTIVITY
RR/
BS
JH IN
Opening Meeting
Interview Male Workers
Interview Contractors/External Stakeholders
Inspect Gunung Bongsu Forest Reserve & Anak Kulim Estate Buffer Zones
Mill Documentation
Interview Female Office Staff/Workers & Review Pay Documentation
Physical Inspection Mill/Effluent Ponds/Stores/Workshop
Inspect Mill Housing and Interview Families
Visit Mill Housing and Interview Male Foreign Workers (Fauna Protection)
Visit Local Communities
Review SIA
Review HCV Assessment and Monitoring Plans
Physical Inspection Estate/Interview Male Fieldworkers
Physical Inspection Stores, Workshop, Landfill
Interview Female Fieldworkers
Interview Female Office Staff/Workers Review Pay Documentation
Visit Division Clinic and Interview Staff
Inspect Sungkup Para Forest Reserve and Jentayu Estate Buffer Zones
Estate Documentation
Inspect Housing and Interview Residents
Inspect Forest Reserve
Physical Inspection Estate/Interview Male Fieldworkers
Physical Inspection Stores, Workshop, Land Application, Landfill
Interview Female Fieldworkers
Interview Female Office Staff/Workers Review Pay Documentation
Visit Division Clinic and Interview Staff
Inspect Gunung Inas Forest Reserve & Sg Dingin Estate Riparian Buffer Zones
Estate Documentation
Inspect Housing and Interview Residents
Interview Foreign Workers at Estate Housing (Fauna Protection)
Collect any outstanding data/information/clarification
Preparation of IAV Report and Closing
Closing Meeting

CR

Appendix D
List of Stakeholders Contacted

LIST OF STAKEHOLDERS CONTACTED
STAKEHOLDERS CONTACTED
Internal Stakeholders
Internal Stakeholders
6 Female Mill Staff/Workers

20+ Mill Housing Residents
2 Female Office Staff/Workers (Padang Buluh Estate)
5 Female Pesticide Sprayers (Padang Buluh Estate)
Health Assistant and Female Assistant (Padang Buluh Estate)
6 Residents Padang Buluh Estate Housing
10 Female Pesticide Sprayers (Sg Dingin Estate)

Health Assistant Sg Dingin Estate Clinic
5 Female Office Staff/Workers (Sg Dingin Estate)
4 Residents Sg Dingin Estate Housing
Contractors & Consultants
Local Communities
Transport Contractors
Mill Construction Contractors
Labour Supply Contractor
General Materials Suppliers
Government Departments
Elementary School Teacher
Labour Department
Forestry Department
Department of Environment
Department of Occupational Safety and Health
Department of Land and Survey
Kampung Sungai Dingin Residents

Kampung Sri Bongsu Residents
Kampung Jalan Baru Residents
Kampung Tanah Licin Residents
Kampung Jurung Residents
Kampung Ulu Mahang Residents
Kampung Sg Pasir Dalam Residents
Kampung Sri Aman Residents
FELDA
NGOs and Others
World Wildlife Fund for Nature (WWF) Malaysia (Kuala
Lumpur Office)
Malaysian Nature Society
Tenaganita
NUPW Kulim Branch
NUPW (SOU1 Worker Representatives)

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PUBLIC SUMMARY REPORT

INITIAL RSPO CERTIFICATION ASSESSMENT

SIME DARBY PLANTATION Sdn Bhd

Management Unit SOU1

Charlie Ross Revised July 2010

BSi Group Singapore Pte Ltd (Co. Reg. 1995 02096N)

BSi Management Systems Malaysia Sdn Bhd (Co.Reg. 804473 A)

SCOPE OF CERTIFICATION ASSESSMENT .................................................

ASSESSMENT PROCESS ................................................................

ASSESSMENT FINDINGS ...............................................................

Corrective Actions and Auditor Conclusions ........................................

with Respect to Each Issue ........................................................

Mill GPS Location .................................................................

SOU1 Location Map .................................................................

Riparian Buffer Strip Established at Replanting ...................................

Sime Darby Time Bound Plan

The Initial Certification Assessment was conducted

BSi Group Singapore Pte Ltd (BSi) has conducted an

BSi recommends, subject to the resolution of claims

Strategic Operating Unit

1.0 SCOPE OF CERTIFICATION ASSESSMENT

1.2 Certification Scope

1.3 Location and Maps

Prepared by BSi Group Singapore Pte Ltd

The SOU1 Mill and Estates are located in Kedah,

Table 1: Mill GPS Location

1.4 Description of Supply Base

RSPO Certification Assessments have been carried out

The FFB production from SOU1 Estates and adjacent

for Sime Darby Plantation Sdn Bhd

Figure 1: SOU1 Location Map

for Sime Darby Plantation Sdn Bhd

Figure 2: Sg Dingin Estate Layout

Prepared by BSi Group Singapore Pte Ltd

for Sime Darby Plantation Sdn Bhd

Figure 3: Padang Buluh Estate Layout

for Sime Darby Plantation Sdn Bhd

Figure 4: Jentayu Estate Layout

for Sime Darby Plantation Sdn Bhd

Table 2: Mill Supply Base

Adjacent Sime Darby

* The FFB production from the adjacent Sime Darby

1.5 Date of Plantings and Cycle

Table 3: Age Profile of Palms

1.6 Other Certifications Held

Prepared by BSi Group Singapore Pte Ltd

1.7 Organisational Information / Contact Person

1.8 Time Bound Plan for Other Management Units

for Sime Darby Plantation Sdn Bhd

Sime Darby has advised BSi that there are no labour

1.9 Area of Plantation

Table 4: Estates and Area Planted

1.10 Approximate Tonnages Certified

1.11 Date Certificate Issued and Scope of Certificate

Prepared by BSi Group Singapore Pte Ltd

The Certificate issue date will be the date of the RSPO

for Sime Darby Plantation Sdn Bhd

The assessment was based on random samples and