RSPO P&C Annual Surveillance Assessment 2 PUBLIC SUMMARY
advertisement
TÜV NORD INTEGRA bvba Certification in agriculture and food Statiestraat 164 2600 Berchem – Antwerp Belgium Phone: + 32 3 287 37 60 Fax: +32 3 287 37 61 www.tuv-nord-integra.com info@tuv-nord-integra.com RSPO P&C Annual Surveillance Assessment 2 PUBLIC SUMMARY REPORT PT. TAPIAN NADENGGAN Langga Payung Mill and its Supply Bases Date of assessment: July 14-15, 2014 Number of ASA: (1 to 04): 2 Report prepared by: Anita Masduki, Lead Auditor Certification decision made by: TÜV NORD INTEGRA bvba Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 1/ 57 PT Tapian Nadenggan- July 14-15, 2014 Contents 1 Scope ............................................................................................................................................................. 4 1.1 Organisational information/Contact person ......................................................................................... 4 1.2 Certification details ............................................................................................................................. 4 1.3 Identity of certification unit .................................................................................................................. 4 1.4 Production volume.............................................................................................................................. 5 1.5 Description of fruit supply base........................................................................................................... 7 1.6 Date of planting and cycle ................................................................................................................ 11 1.7 1.6.1 Planting program for each estate ......................................................................................... 11 1.6.2 Replanting program for each estate ..................................................................................... 12 Time-bound plan .............................................................................................................................. 13 1.8 Progress of associated smallholders or outgrowers towards compliance with relevant standards should be in accordance to the 3 year implementation plan: N/A .................................................................. 16 1.9 2 3 Other certifications held .................................................................................................................... 16 Partial certification......................................................................................................................................... 17 2.1 General ............................................................................................................................................ 17 2.2 Requirements for time-bound plan.................................................................................................... 17 2.3 Requirements for uncertified management units and/or holdings ...................................................... 19 Assessment process ..................................................................................................................................... 20 3.1 Certification body ............................................................................................................................. 20 3.2 Qualifications of the assessment team ............................................................................................. 20 3.2.1 3.3 3.4 4 Assessment team members ................................................................................................ 24 Assessment methodology ................................................................................................................ 25 3.3.1 General overview................................................................................................................. 25 3.3.2 Assessment agenda ............................................................................................................ 26 Outline of how stakeholder consultation was managed..................................................................... 26 3.4.1 Summary ............................................................................................................................. 26 3.4.2 List of contacted stakeholders.............................................................................................. 27 Assessment findings ..................................................................................................................................... 28 4.1 Summary of findings by RSPO Principle and sample of the Criteria ................................................. 28 4.2 Sample criteria for inclusion in this report on an annual basis during the lifetime of the certificate ........... 45 4.3 Noteworthy positive components and identified non conformances ......................................................... 45 4.3.1 Details of noteworthy positive components .............................................................................. 45 4.3.2 Status of non-conformities previously identified. ...................................................................... 45 4.3.3 Detail of Non Conformities identified during this ASA ............................................................... 46 4.4 Issues raised by stakeholders ............................................................................................................... 50 5. RSPO P& C Group Certification .................................................................................................................... 52 6. RSPO Supply Chain Certification .................................................................................................................. 52 6.1 Findings by criteria .................................................................................................................................. 52 6.2 Noteworthy positive components and identified non conformances ......................................................... 56 6.2.1 Details of noteworthy positive components .............................................................................. 56 Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 2/ 57 PT Tapian Nadenggan- July 14-15, 2014 6.2.2 Detail of non conformity ........................................................................................................... 56 7. Certified organisation’s acknowledgement of internal responsibility............................................................... 56 7.1 Date of next surveillance visit .................................................................................................................. 56 7.2 Date of closing non-conformities ............................................................................................................. 56 7.3 Formal sign-off of assessment findings ................................................................................................... 56 Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 3/ 57 PT Tapian Nadenggan- July 14-15, 2014 1 Scope 1.1 Organisational information/Contact person Principle Contact Person Mr. Ismu Zulfikar Business address Head of Environment Department Group Name (If applicable) PT Tapian Nadenggan Office Number +6221-3181388 Mobile Telephone Number - Fax +6221-3181389 E-mail address ismu-zulfikar@smart-tbk.com Web site 1.2 Certification details RSPO membership number: 1-0019-05-000-00 Parent company as applicable: Sinar Mas Group Certificate number: 70603 Date of previous assessment July 15-19. 2013 Date of issue certificate 13.02.2015 Date of expiry certificate 16.09.2017 1.3 Identity of certification unit Palm oil mill and plantation owned by PT. TAPIAN NADENGGAN were assessed against RSPO Certification Systems (version 2007), RSPO P&C for Sustainable Palm Oil Production (version 2007), National Interpretation of RSPO Principle and Criteria for Sustainable Palm Oil Production - Republic of Indonesia (RSPO Indonesian National Interpretation INA-NIWG. ver. May 2008 Standard), as well as RSPO Supply Chain Standard for Mills (Module E: Mass Balance) ver. November 2011. Under this certification PT. TAPIAN NADENGGAN has one Langga Payung Mill (LPYM) and three supply bases, i.e. Langga Payung Estate (LPYE), Payabaung Estate (PYBE) and Normark Estate (NRME). The scope of this Annual Surveillance Assessment 2 was for Langga Payung Mill (LPYM) and two supply bases, i.e. Langga Payung Estate (LPYE) and Payabaung Estate (PYBE). The mill also purchases FFB from third party, but they are not included in this assessment. Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 4/ 57 PT Tapian Nadenggan- July 14-15, 2014 Name of Mill and Plantation Location Coordinates Langga Payung POM (LPYM) Huta Baru Nangka Village, Halongonan, Padang Lawas Utara, Sumatra Utara 1º 39' 16'' N 99º 53' 13'' E Langga (LPYE) Huta Baru Nangka Village, Halongonan, Padang Lawas Utara, Sumatra Utara 1º 38' 55'' N 99º 53' 22'' E Paya Baung Estate (PBNE) Huta Baringin Village, Simangambat, Padang Lawas Utara, Sumatra Utara 1º 37' 12'' N 99º 58' 31'' E Normark Estate (NRME) Normark Village, Kota Pinang, Labuhanbatu Selatan, Sumatra Utara 1º 50' 57'' N 99º 59' 53'' E 1.4 Payung Estate Production volume Name of Mill and Plantation Actual production from last 12 months (MT) (Jan-Dec 2013) FFB Langga Payung POM (LPYM) - CPO PK 30,627 8,156 Projected production for next 12 months(MT) (Jan-Dec 2014) Actual production (MT) Jan-Jun 2014 FFB CPO PK 11,506 3,055 FFB CPO - PK 40,881 10,901 Langga Payung Estate (LPYE) 60,446 - - 21,036 - - 82,025 - - Paya Baung Estate (PBNE) 48,481 - - 16,745 - - 54,451 - - Normark (NRME) 32,866 - - 15,009 - - 45,219 - - 8,156 52,790 181,695 40,881 10,901 TOTAL Estate 141,793 30,627 Int rspo pc cld clr asa sum e - v02–28/05/2014 11,506 3,055 p. 5/ 57 PT Tapian Nadenggan- July 14-15, 2014 Location Map of Langga Payung Mill and Supply Bases of PT Tapian Nadenggan Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 6/ 57 PT Tapian Nadenggan- July 14-15, 2014 1.5 Description of fruit supply base Name of Plantation Area (Ha) Actual FFB Production in 2013 (ton/year) FFB Projected Production in 2014 *) (ton/year) Total Planted Langga Payung Estate 5,308.53 4,961 60,446 82,025 Paya Baung Estate 2,651.09 2,507 48,481 54,451 Normark Estate 2,195.10 1,928 32,866 45,219 10,154.72 9,396 141,793 181,695 Actual FFB Purchased in 2013 (ton/year) FFB Projected Purchased in 2014 (ton/year) 65,456 75,000 Total FFB supplied to the mill 65,456 75,000 Grand total FFB supplied to the mill 207,249 262,144 Total FFB supplied to the mill Name of smallholder *) FFB Purchased from outgrower **) Area (Ha) Total Planted - - No existing smallholder scheme currently under the PT Tapian Nadenggan Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 7/ 57 PT Tapian Nadenggan- July 14-15, 2014 Map of Langga Payung Estate, Supply Bases of PT Tapian Nadenggan Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 8/ 57 PT Tapian Nadenggan- July 14-15, 2014 Map of Payabaung Estate, Supply Bases of PT Tapian Nadenggan Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 9/ 57 PT Tapian Nadenggan- July 14-15, 2014 Map of Normark Estate, Supply Bases of PT Tapian Nadenggan Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 10/ 57 PT Tapian Nadenggan- July 14-15, 2014 1.6 Date of planting and cycle 1.6.1 Planting program for each estate Year of planting Planted area (ha) in each estate Total planted area (ha) Langga Payung Estate (LPYE) Paya Baung Estate (PYBE) Normark Estate (NRME) 1978 - - - - 1985 613,79 255,44 - 869,23 1986 1.182,66 915,66 - 2098,32 1987 827,38 971,28 - 1.798,66 1990 - - - - 1997 - - - - 1998 - - - - 2000 - - 233,62 233,62 2003 - - - - 2004 - - 467,80 467,80 2005 - - 311,97 311,97 2006 173,59 - 332,47 506,06 2010 302,73 - 264,46 567,19 2011 681,31 - - 681,31 2012 275,49 - 226,36 501,85 2013 481,75 - - 481,75 2014 210,09 209,06 - 419,15 TOTAL 4.748,79 2.351,44 1.836,68 8.936,91 Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 11/ 57 PT Tapian Nadenggan- July 14-15, 2014 1.6.2 Replanting program for each estate Replanting area (ha) in each estate Langga Payung Estate (LPYE) Paya Baung Estate (PYBE) Normark Estate (NRME) Pernantian Estate (PRNE) Total area to be replanted (ha) 2014 210,09 209,06 - - 419.15 2015 730 262 - - 992 2016 639 304 - - 943 2017 954 523 - - 1,477 2018 401 389 - - 790 TOTAL 2,934.09 1,687.06 - - 4,621.15 Year of replanting Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 12/ 57 PT Tapian Nadenggan- July 14-15, 2014 1.7 Time-bound plan a. Time-bound plan for mill(s) Below is the time-bound plan for mill and for plantation(s) under the SMART Group Mill(s) No. Company SMART Tbk Sharehol Name of mill(s) ders Address Plantation(s) Annual Annual Production Production (ton) in (ton) in 2014 2014 CPO 1 2 Tapian Nadenggan Tapian Nadenggan 100% 100% Langga Payung Mill (LPYM) JakLuay Mill Huta BaruNangkaVil lage, Halongonan, Padang LawasUtara, Sumatra Utara East Kalimantan 40,881 30,773 Name of plantation(s) PK 10,901 6,994 Langga Payung Estate (LPYE Huta BaruNangk aVillage, Halongona n, Padang LawasUtar a, Sumatra Utara 82,025 Paya Baung Estate (PBNE) Huta BaringinVill age, Simangam bat, Padang LawasUtar a, Sumatra Utara 54,451 Normark Estate (NRME) NormarkVill age, Kota Pinang, Labuhanbat uSelatan, Sumatra Utara 45,219 Pantun Mas Estate JakLuay Estate Long Buluh Estate Int rspo pc cld clr asa sum e - v02–28/05/2014 Address Remark TimeAnnual bound for Production of FFB certificat ion (ton) in 2014 Kecamatan Kongbeng, Kabupaten Kutai Timur, Provinsi Kalimantan Timur Kecamatan Muara Wahau, Kabupaten Kutai Timur, Provinsi Kalimantan Timur Kecamatan Muara Wahau, Kabupaten Kutai Timur, Provinsi Kalimantan Timur 139,874. 25 2012 2014 104,217. 57 79,420.5 3 p. 13/ 57 Certified Recomme nded To be Certified PT Tapian Nadenggan- July 14-15, 2014 Bukit Subur Estate 3 Leidong West Indonesia 100% Leidong West Mill (LWSM) Kecamatan Kelapa, Kabupaten Bangka Barat, Provinsi Bangka Belitung 44,647 11,669 Satya Kisma Usaha 100% Sungai Bengkal Mill (SBNM) Desa Betung Bedarah Barat, Kecamatan Tebo Ilir, Kabupaten Tebo, Provinsi Jambi 32, 546 6,862 46,308.7 9 Leidong West Selatan Estate (LWSE) Kecamatan Kelapa, Kabupaten Bangka Barat, Provinsi Bangka Belitung 15,705 Leidong West Utara Estate (LWUE) Kecamatan Kelapa, Kabupaten Bangka Barat, Provinsi Bangka Belitung 15,374 Bukit Intan Estate (BINE) Kecamatan Kelapa, Kabupaten Bangka Barat, Provinsi Bangka Belitung Bukit Mas Estate (BMSE) 4 Kecamatan Kongbeng, Kabupaten Kutai Timur, Provinsi Kalimantan Timur Sungai Bengkal (SBNE) Muara Kilis(KILE) 2014 Certified 2014 Certified 104,604 67,259 Kecamatan Kelapa, Kabupaten Bangka Barat, Provinsi Bangka Belitung Desa Betung Bedarah Barat, Kecamatan Tebo Ilir, Kabupaten Tebo, Provinsi Jambi 49.855 14.606 Desa Muara Kilis, Kecamatan Tebo Ilir, Kabupaten Tebo, Provinsi Jambi Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 14/ 57 PT Tapian Nadenggan- July 14-15, 2014 5 Kresna Duta Agro 100% Muara Wahau Mill (MWHM) Desa Sukamaju,Kec amatan Kongbeng, Kabupaten Kutai timur, Provinsi Kalimantan Timur 50,047 10,406 Muara Wahau Estate (MWHE) Gunung Kombeng Estate (GKME) Gunung Kombeng Mill (GKMM) 6 Golden Agri Resources 100% TanjungKem biri Mill Belitung 56,644 15,448 Sungai Buaya Mill Lampung 66,928 16,421 Sungai Merah Mill Lampung 56,415 14,069 Pangkalan Panji Mill South Sumater a South Sumatera South Sumatera Bangka TanjungKembiri Estate; Tanjung Estate Rusa Sungai Estate; Buaya Desa Makmur Jaya, Kecamatan Kongbeng, Kabupaten Kutai timur, Provinsi Kalimantan Timur 2014 Certified 2015 Not Certified Belitung 2014 Certified Lampung 2014 Certified 2014 Certified Desa Sukamaju, Kecamatan Kongbeng, Kabupaten Kutai timur, Provinsi Kalimantan Timur 102,151 96,054 Mesuji Estate BumiSawit Mill Muara Kandis Mill Bukit Perak Mill East Kalimanta n Int rspo pc cld clr asa sum e - v02–28/05/2014 Sungai Merah Estate; Lampung Sawit Mas Sejahtera Estate South Sumat era South Sumatera South Sumatera Bangka 2014 East Kaliman tan 2014 BumiSawit Estate; MuaraKandis Estate; Muara Tawas Estate Bukit Perak Estate; Bukit PermataEs tate 2014 2014 p. 15/ 57 Certified Certified Certified Certified PT Tapian Nadenggan- July 14-15, 2014 1.8 Progress of associated smallholders or outgrowers towards compliance with relevant standards - should be in accordance to the 3 year implementation plan: N/A . 1.9 Other certifications held Type of Certificate ISO 9001:2008 SMK3 ISCC Langga Payung Mill Langga Payung Paya Baung Estate Estate Normark Estate Certificate No. QEC22921 by SAI Global, dated 21 July 2011, ended at 20 August 2014 - - - No. Reg. SMK3.2014.SK387, dated 14 May 2014, valid for 3 years until 14 May 2017 - - - EU-ISCC-Cert-DE10407781379, reg. 1775 by GUT Cert., dated 21 -112013, valid until 20-112014 - - - Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 16/ 57 PT Tapian Nadenggan- July 14-15, 2014 2 Partial certification 2.1 General Organisations that have a majority holding* in and / or management control of more than one autonomous company growing oil palm will be permitted to certify individual management units and/or subsidiary companies only if all the following are complied with the requirements mentioned below. *Majority shareholding: the largest shareholding. Where the largest shareholdings are equal (e.g. 50/50) this applies to the organisation that has management control Requirement The parent organisation or one of its majority owned and / or managed subsidiaries is member of RSPO. Finding/ Compliance PT Tapian Nadenggan is member of PT SMART Tbk, the parent company of 6 (six) palm oil mill companies and its supply bases. The RSPO membership for PT SMART Tbk is 1-0019-05-000-00. One of the policy of PT SMART Tbk policy is to certify all of mills and its supply bases for RSPO certification as mentioned in the time-bond plan. Compliance For groups with complex management structures the following are required: (a) A statement of the ultimate controlling shareholders and directors in the managing agency company/companies. (b) Ditto in respect of each of the operating groups. (c) Application for membership by the top asset owning company/companies. (d) Application for membership by the managing agency company/companies a. and b. PT SMART Tbk is the parent company of several palm oil mill and plantation companies. There are 6 (six) palm oil mill and plantation companies under the PT SMART Tbk. The President Director of PT SMART Tbk is fully in charge and has ultimate controll in the managing and operating all of the companies. He appointed Head of Sustainability Department to ensure all of its subsidiaries to get the RSPO certificate according to the time-bond plan which has been decided by the top management. c. and d. PT SMART Tbk has an RSPO membership since 2010 and received frst RSPO certifcation in 2011 for PT Tapian Nadenggan. If one of above mentioned requirements is non-compliant, this leads to a major non-conformity. The following requirements about a time bound plan (2.2) and requirements for uncertified management units and/ or holdings (2.3) are applicable, if the registered RSPO member is the holding company or one of its subsidiaries. 2.2 Requirements for time-bound plan Requirement Finding/ Compliance A challenging time-bound plan for certifying all its relevant entities (Relevant entities – including both the business units and parent company (s)’ commitment to RSPO, membership status and involvement with palm oil for each subsidiary) is available. The time-bound plan should contain a list of subsidiaries, estates and mills. The time-bound plan for all units containing a list of estates and mills within the PT SMART Tbk is available. The time bound-plan is appropriate (in particular, the time scale is sufficiently challenging, taking into account circumstances around each entity), taking into account comments received from stakeholders following the public consultation process. The time-bound for each particular estates and mills is sufficiently challenging as it’s scheduled that all mills / plantations will be certified by 2015. Int rspo pc cld clr asa sum e - v02–28/05/2014 Compliance Compliance p. 17/ 57 PT Tapian Nadenggan- July 14-15, 2014 Requirement Finding/ Compliance What is the progress of this plan since the last audit? (if the last audit was done by another CB, the time-bound plan shall be accepted at the moment of first acceptance and only check continued appropriateness shall be checked). During the last annual surveillance audit (ASA-1) there were 6 mills and its supply bases listed in the time-bound plan to be certified in 2013. At 5 of them, which are Tanjung Kembiri, Sungai Buaya, Sungai Merah, Leidong West and Muara Wahau Mill the certification audit has been performed in 2013 and the certification of all of them was approved in 2014. 1 of them, Gunung Kombeng Mill, was postponed and will be certified in 2015. The other units such as Jak Luay, Pangkalan Panji, Bumi Sawit, Muara Kandi, and Bukit Perak Mill the certification audit has been performed in 2014 and the company hope to get the approval as well in 2014. Compliance Are there any revision to the time-bound plan or to the circumstances of the company e.g. due to acquisitions/disposals, emergence/re-emergence of land disputes and/or labour conflicts? Yes, there is a revision for the time-bound plan as mentioned above. But none of them was caused due to acquisitions/disposals, emergence/re-emergence of land disputes and/or labour conflicts. Compliance If the previous question was answered with yes, the plan shall be reviewed for whether it is still appropriate, such that changes to the time-bound plan are permitted only where the organisation can demonstrate that they are justified. The requirements will also apply to any newly acquired subsidiary from the moment that the company is legally registered with the local notary or chamber of commerce (or equivalent). The previous time-bound plan was changed into a new one as mentioned above in 1.7. The scheduled certification for Gunung Kombeng Mill was postponed from 2013 to 2015. In 2013 as planned in the timebound plan, PT. Kresna Duta th Agro Indo - Gunung Kombeng Mill communicated on 15 March 2013 to their supply base (it concerns only smallholders represented by Sawit Bersama Cooperation) the intention to obtain RSPO certification. However, the Sawit Bersama Cooperation sent a letter dated 19th March 2013 in which they refused to go for RSPO Certification. They had 4 main objections: a. Fees for certification will be covered by smallholder not by KDA b. RSPO certification doesn’t give a guarantee for an increased FFB price c. Preparation and implementation of RSPO administratively will be complicated on an administrative level d. RSPO is not a mandatory regulation for smallholders st As the result of the above, on dated 31 January 2014 a revision of time bound plan for RSPO certification has been done, deciding the Gunung Komb has to be certified by 2015. Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 18/ 57 PT Tapian Nadenggan- July 14-15, 2014 Requirement Finding/ Compliance Compliance Where there are isolated lapses in implementation of a time-bound plan, a minor non-compliance is raised. Where there is evidence of systematic failure to proceed with implementation of the plan, a major noncompliance is raised. 2.3 Requirements for uncertified management units and/or holdings Requirement No replacement of primary forest or any area identified as containing High Conservation Values (HCVs) or required to maintain or enhance HCVs in accordance with RSPO criterion 7.3. Any new plantings since January 1st 2010 must comply with the RSPO New Plantings Procedure. Finding/ Compliance The company has prepared the report of High Conservation Values (HCV) prepared by RSPO Approved HCV Assessors in 2013 and Environmental Impact Assessment (EIA) authorized by East Kutai Regent with Decree No. 120/660.1/BUPKUTIM/V/2006 dated 8 May 2006. Based on the report, the identified HCV area are: HCV 1.1, HCV 1.3, HCV 4.1, HCV 5 and HCV 6, which together constitute a total HCV area of 721.45 hectares, taking form in riverbanks, protected species, customary forest and sacred cemetary ground. Based on HCVreport it was noted that no replacement of primary forest or any area identified as containing high conservation values (HCVs) in area Gunung Kombeng Estate. Based on the EIA report it was noted that all environmental impact has been identified and to be controlled accordingly. The two documents have been consulted with following relevant stakeholders: village heads, public figures, district government staffs, and cooperative during public consultation on 11 April 2013 Land conflicts, if any, are being resolved through a mutually agreed process, e.g. RSPO Grievance procedure or Dispute Settlement Facility, in accordance with RSPO criteria 6.4, 7.5. and 7.6. Based on the stakeholder’s communication of Environment Impact Assessment (EIA) and Social Impact Assessment (SIA) reports which held in January 2013, it was noted that the land acquisition and compensation has been performed properly through FPIC process and method. Auditor has checked and verified the SIA report and found that no land conflicts recorded. If any land conflicts, the SMART Group as the parent company has provided the Dispute Handling procedure. Labour disputes, if any, are being resolved through a mutually agreed process, in accordance with RSPO criterion 6.3. The company has performed the internal audit as well as the RSPO Assessment Summary Report against the RSPO PNC for PT Kresna Duta Agro 2014. Auditor has checked and verified the internal audit report report in accordance with RSPO criterion 6.3 and found that no labour disputes recorded. If any labour disputes, the SMART Group as the parent company has provided the Dispute Handling procedure . Legal non-compliance, if any, are they being resolved in accordance with the legal requirements, with reference to RSPO criteria 2.1 and 2.2. The company has performed the internal audit as well as the RSPO Assessment Summary Report against the RSPO PNC for PT Kresna Duta Agro in 2014. Auditor has checked and verified these internal and external audit report in accordance with RSPO criterion 2.1 and 2.2 and found that in general the company compliance to relevant legal requirement. Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 19/ 57 PT Tapian Nadenggan- July 14-15, 2014 Assessment of above mentioned requirements is based on the following approach: Positive assurance statement, which is based upon self-assessment (i.e. internal audit) by the organisation. This would require evidence of the self-assessment against each requirement. Targeted stakeholder consultation may be carried out by the certification body. If this has already been conducted by a certification body, other certification bodies may request the summary report through the organisation. If necessary, the certification body may decide on further stakeholder consultation or field inspection, assessing the risk of any non-compliance with the requirements. For the requirements mentioned in the section, the approach to defining major and minor non-compliance can be applied from the relevant national interpretation. For example, if a non-compliance against a ‘major indicator’ in a non-certified holding/management unit is identified, the current certification assessment cannot proceed to a successful conclusion until that is addressed. Failure to address any of the requirements may lead to certification suspension(s) (consistent with the RSPO Certification Systems document rules on non-compliance). 3 Assessment process 3.1 Certification body TÜV NORD INTEGRA is a certification and inspection body which operates in agriculture and horticulture and the food and feed processing industry. TÜV NORD INTEGRA offers all certification schemes with an added value in the agriculture and food industry, the legal systems as well as the private systems. TÜV NORD INTEGRA is active in Belgium but also in a large number of other countries all over the world. TÜV NORD INTEGRA is member of the internationally operating German inspection and certification organisation TÜV NORD. TÜV NORD INTEGRA is accredited by the Belgian accreditation body BELAC For the standard ISO 17020 for inspection organisations (Certificate Number 103-INSP). For the standard EN 45011 for product certification (Certificate Number 103-PROD). For the standard ISO 17021 for certification of quality systems (Certificate Number 103-QMS). 3.2 Qualifications of the assessment team Qualification of the lead auditor: Anita Masduki (AM) and Chaiyaporn Seekao (CS) Requirement Qualifications AM A minimum of post high school (post secondary school) training in either agriculture/forestry, environmental science or social sciences; Chemical Engineer, Bandung Institute of Technology-Indonesia, passed 1987 Diploma of Biological Treatment Management, Name of University etc. Hiroshima University-Japan, 19911992 Diploma of Environmental Management, Institute of Environmental Management and Assessment, LondonUnited Kingdom, 1999 Magister of Social Education, Ibnu Khaldun University, Bogor-Indonesia, Int rspo pc cld clr asa sum e - v02–28/05/2014 Compliance CS Yes - May, 2010-present, Ph.D candidate (Environmental Management) full Scholarship at The International Postgraduate Programs in Environmental Management (Hazardous Waste Management), Chulalongkorn University, THAILAND - April, 2006, hold Master of Science (Sustainable Land Use and Natural Resource Management) degree from Kasetsart University, THAILAND. - April, 2002, hold Bachelor of Science (Fisheries) degree from Kasetsart p. 20/ 57 PT Tapian Nadenggan- July 14-15, 2014 Requirement Qualifications AM 2007-200 Compliance CS University, THAILAND Candidate Doctoral Program of Education Management, Ibnu Khaldun University,Bogor-Indonesia, 2010present At least 5 years professional experience in area of work relevant to the assessment (e.g., palm oil management; agriculture/forestry; ecology; social science); 1992-1995: Assessment the environmental impact for several industries of pulp and paper, wood product, pharmacy, at Java, Sumatera, and Kalimantan 1996:Cleaner Production Division for GTZ-Germany and Environmental Impact Control Agency - Indonesia) and Swiss Contact; responsible for research and develop program to integrate cleaner production in the strategic planning of industrial development program, including identifying candidates for implementing cleaner production program in Indonesia. The project include of information dissemination, assist on pilot projects, develop guidance manual for cleaner production integration, develop cleaner production training workshops, deliver training for trainer, etc. This project based on social services provided by GTZ-Germany and Environmental Impact Control Agency of Indonesia as Awareness for Indonesian Cleaner Production Program. 1997- 1998:Global Climate Division of State Ministry of Environment, Jakarta and World Bank – Washington; responsible for preparing Investment Project Proposal for Ozone Depleting Substances Phaseout in Indonesia to be granted by Montreal Protocol Multilateral Fund through World Bank. This project focused on research in identifying industries as candidates for investment project. The project covered dissemination of information, assist on pilot projects, develop guidance manual for cleaner production integration, develop investment project proposal, delivered training, workshops for trainer, public training, etc. 1998-2011: Audit and consultancy experiences for more than 80 companies for ISO 9001, ISO 14001, OHSAS 18001, SA 8000, since 1996 up to 2011 in wide range of audit scope, such as estates, oil and gas, pulp and paper, electronic manufacturing, school and university, contractors, etc. Int rspo pc cld clr asa sum e - v02–28/05/2014 Yes October 2009 to present: work at TÜV NORD (Thailand) Ltd. and was responsible for several standards such as ISO9001:2008, GMP, HACCP,FAMI-QS, GLOBALG.A.P and RSPO Year 20082009: worked at Team Consulting Engineering and Management Co., Ltd., consultancy company, and was responsible for conducting the Environmental Impact Assessment (EIA) study which includes HCV, biodiversity social and health impact assessment for many mega-projects which were engaged by both domestically and internationally recognized companies. The area of my expertise on EIA study emphasizes on fishery and agriculture topics, Conduct public hearing/consultations for obtaining the comments and feedback from all stakeholders. Provide the client with appropriate consultation and environmental mitigation plan, to minimize the environmental, social and health impacts to nearby communities, Service the client with integrated consultancy based on environmental management, Audit and monitor at project sites during the construction and commissioning period, to ensure that all construction and commission process/activities meet with EIA mitigation measures. Year 20062008: worked Virbac (Thailand) Co.,Ltd , responsible for Act as GMP and HACCP coordinator (QMR) to coordinate with Department of Fisheries for GMP and HACCP certification, Create new products and improve quality of existing products in particular for shrimp, tilapia and pangasius to meet with customer requirement and regulation concerned, Visit and give the technical support/consultancy to suppliers, customers and fish/shrimp farmers in both domestically and internationally, for example. Year 2005-2006: worked at Food and Agriculture Organization of the United Nations (FAO) with responsible for p. 21/ 57 PT Tapian Nadenggan- July 14-15, 2014 Requirement Qualifications AM Compliance CS Closely coordinate with governmental sector, international organization, national organization, embassy, university and NGOs where has involved in providing tsunami relief to establish the tsunami assistance database, Involve to study and establish the short and long term plans to assist the tsunami victims in Thailand especially recovery their household, occupation and livelihood and Conduct the public hearing/consultations for obtaining the comments and any feedback from all stakeholders. Year 2002-2005: worked at Department of Fisheries, Ministry of Agriculture and Cooperatives Training in the practical application of the RSPO criteria, and RSPO certification systems; Successfully completion of an ISO 9000:19011 lead assessors course; Yes Certified RSPO Lead Auditor Training by Wild Asia, May 2011, Kuala Lumpur, Malaysia - RSPO Lead Auditor Course Organized by Stepwise Support Programme during April 12-16, 2010, Johor Bahru, Malaysia Workshop on Indonesia Sustainable Palm Oil, February 2012, Indonesia Palm Oil Community, Jakarta - HCV and its application in RSPO Organized by WildAsia during August 28-29, 2012 at Krabi, Thailand ISO 9001:2008 Series Auditor/Lead Auditor Training Course (Course No: A17086 Certificated by IRCA) Organized by Robere & Association (Thailand) Ltd. October 26-30, 2009, Bangkok, Thailand ISO 9001:2000 Advanced Lead Auditor Training Course, by SGS International Certification Services, 2002, Jakarta-Indonesia Yes Certified Auditor Training of Environmental Management System (ISO 14001:1996) EARA -RIET REDECON Jakarta Occupational Safety and Health Audit Scheme (OSHAS) 18001, SGSJakarta 2002 A supervised period of training in practical assessment against the RSPO criteria or similar sustainability standards, with a minimum of 15 days assessment experience and at least 3 assessments at different organisations. Having more than 15 days of audit in more than palm oil companies (Feb 2011 – June2012) 1. RSPO PNC Auditor for Main Audit of Mill and Estates London Sumatera Musi Banyuasin, Palembang-Indonesia, Feb. 21-25, 2011 (5 days) 2. RSPO PNC Auditor for Pre Audit-1 of Salim Ivomas Perkasa Mill and Estate, Riau-Indonesia, April 2528, 2011 (4 days) 3. RSPO Supply Chain Lead Auditor for Main Audit of Wilmar Group, 2 mills and 2 refineries, Sumatera and Kalimantan-Indonesia, May 23-25,June 13-17, 2011 (7 days) 4. RSPO PNC Auditor for Main Audit of Mill and Estates London Sumatera, Site North SumateraIndonesia, June 20-28, 2011 (9 days) Int rspo pc cld clr asa sum e - v02–28/05/2014 Yes Having more than 15 days of audit in more than palm oil companies (March 2010 – November 2012) 1. RSPO P&C auditor for pre-audit of Univanich’s mills and estates, Krabi, Thailand that organized by GIZ during March 15-17, 2010 (3 days) 2. RSPO P&C auditor for Main Audit of PT. PERKEBUNAN NUSANTARA IV (PERSERO), Medan, Indonesia during October 25-29, 2010 (5 days) 3. RSPO supply chain auditor for main audit of Lam Soon (Thailand) for 2 refinery in Trang and Samutprakarn, Thailand during March 13-17, 2012 (3 days) 4. RSPO supply chain auditor for stage 1 audit of Energy Absolute, Bangkok, Thailand on March 29, 2012 (1 day) p. 22/ 57 PT Tapian Nadenggan- July 14-15, 2014 Requirement Qualifications Compliance AM CS 5. RSPO PNC Auditor for Tapian Nadenggan-SMART Group, July 48, 2011 (5 days) 6. RSPO PNC Lead Auditor for Pre Audit of PT ANJA Agri Binanga Mill and Estates, Site ANJA Binanga & Tungkal Ulu, North Sumatera -Indonesia, Juli 18-20, 2011 (3 days) 7. RSPO PNC Lead Audit for Main Audit of Inti Indosawit Plasma Estates, Site ANJA Binanga and Tungkal Ulu-Indonesia, Sep 12-14, 2011 (3 days) 8. RSPO PNC Lead Auditor for Pre Audit -2 of Salim Ivomas Perkasa Mill and Estates, Riau-Indonesia, September 26-30, 2011 (5 days) 9. RSPO PNC Lead Auditor for Main Audit of PT ANJA Binanga Mill and Estates, Site ANJA Binanga & Tungkal Ulu, North Sumatera Indonesia, October 11-14, 2011 (4 days) 10. RSPO Supply Chain Lead Auditor for Main Audit of Dr. Oetker Foods Industry, Oerlinghosen-Germany, November 7-11, 2011 (5 days) 11. RSPO PNC Lead Auditor for Pre Audit of Austindo Nusantara Jaya Agri Mill and Estates, Site Binanga, North Sumatera -Indonesia, November 28-December 2, 2011 (5 days) 12. RSPO PNC Lead Auditor for Main Audit of Salim Ivomas Perkasa Mill and Estates, Riau-Indonesia, December 19-23, 2011 (5 days) 13. RSPO PNC Lead Auditor for Pre Audit of ATSA Thailand, Feb 8-9, 2012 (2 days) and June 2012 (6 days) 14. RSPO PNC Lead Auditor for Pre Audit of Perkebunan Nusantara !V Mill and Estates, North Sumatera Indonesia, Feb. 20- 24, and May 28-31, 2012 (10 days) 15. RSPO PNC Lead Auditor for Main Audit of Austindo Nusantara Jaya Agri Mill and Estates, Site Binanga, North Sumatera -Indonesia, March 5-9, 2012 (5 days) 16. RSPO Supply Chain Lead Auditor for pre audit of Lam Soon Thailand, March 13-15, 2012 (5 days) 17. RSPO Supply Chain Lead Auditor for Main Audit of Lam Soon Thailand, April 29-May 5, 2012 (6days) 18. RSPO PNC Lead Auditor for AnnualSurveillance Audit 1 of PT Aek Tarum Mill and Estates, South 5. RSPO P&C auditor for state 1 audit of Univanich’s mills and estate, Krabi, Thailand during April 6-7, 2012 (2 days) 6. RSPO supply chain auditor for main audit of Lam Soon (Thailand) for 2 refinery in Trang and Samutprakarn, Thailand during April 30-May 1-6, 2012 (5 days) 7. RSPO supply chain lead auditor for main audit of Energy Absolute, Bangkok, Thailand during May 14-16, 2012 (3 days) 8. RSPO P&C auditor for main audit of United Palm Oil Industry Public Company Limited (UPOIC), Krabi, Thailand during June 26-29, 2012. (5 days) 9. RSPO P&C lead auditor for main audit of Univanich, Krabi Thailand during October 8-12, 2012 10. RSPO supply chain lead auditor for state 1 audit of T S Oil Industry Co.,Ltd, Bangkok, Thailand on October 22, 2012 (1 day) 11. RSPO supply chain lead auditor for main audit of T S Oil Industry Co.,Ltd, Bangkok, Thailand during November 910, 2012 (2 days) 12. RSPO supply chain lead auditor for main audit of Thai Oleochemical, Rayong, Thailand during February 14-15, 2013 13. RSPO supply chain lead auditor for main audit of UPOIC, Krabi, Thailand during March 14-15, 2013 RSPO supply chain lead auditor for surveillance audit Lamsoon PCL, Samutprakarn, Thailand during May 2-3, 2013 14. RSPO supply chain lead auditor for main audit at Oleen Co.,Ltd, Thailand on June 17, 2013 15. RSPO supply chain lead auditor for main audit at Mars Petcare, Thailand on June 25, 2013 16. RSPO supply chain lead auditor for main audit at Bangchak PCL, Thailand on September 26, 2013 RSPO supply chain lead auditor for main audit at Dalian Talent, Thailand during December 24-25, 2013 Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 23/ 57 PT Tapian Nadenggan- July 14-15, 2014 Requirement Qualifications AM Compliance CS Sumatera -Indonesia, May, 2012 (5 days) 19. Lead Auditor for RSPO New Planting Procedure of First Resources Group, PT Borneo Persada Energy Jaya and Citra Agro Kencana, Indonesia, May, 2012 (4 days) 20. RSPO PNC Lead Auditor for Main Audit of ATSA Thailand, MayJune 2012 (6 days) 21. RSPO PNC Lead Auditor for Surveillance Audit of PT Sahabat Mewah Sejahtera Mill and Estates, Belitung Island -Indonesia, July, 2012 (6 days) 22. Lead Auditor for RSPO New Planting Procedure of First Resources Group, PT Borneo Surya Mining Jaya and Maha Katya Bersama, Indonesia, September, 2012 (4 days) 23. RSPO PNC Lead Auditor for Certification Audit of Perkebunan Nusantara IV Mill and Estates, North Sumatera -Indonesia, September 17-28, 2012 (10 days) 24. RSPO PNC Lead Auditor for Annual Surveillance Audit 2 of PT Aek Tarum Mill and Estates, South Sumatera -Indonesia, May, 2013 (5 days) 25. ISPO) Aneka Inti Persada Minamas Siak Pekanbaru, October 18-23, 2013 26. RSPO PNC Lead Auditor for PreAudit Salim Ivo Mas Sungai Dua Mill and Estate, Agustus 2731, 2013 (5 days) 27. RSPO PNC Lead Auditor for CertificationAudit Salim Ivo Mas Sungai Dua Mill and Estate, November 18-23, 2013 (5 days) 28. RSPO PNC Lead Auditor for Annual Surveillance Audit 2 of Lomsum Musi Banyuasin, March 10-14,2014 29. RSPO PNC Lead Auditor for Annual Surveillance Audit 3 of PT Aek Tarum Mill and Estates, South Sumatera -Indonesia, April 1418,2014 (5 days) 3.2.1 Assessment team members Requirement Field working experience in the palm oil sector, or demonstrable equivalent. Assessor Supijatno (SJ) Int rspo pc cld clr asa sum e - v02–28/05/2014 Qualification Compliance Yes Lecturer of Fac. Agric Bogor Agric. Indonesia University. Participated in different RSPO audits. Carried out different research studies in palm oil p. 24/ 57 PT Tapian Nadenggan- July 14-15, 2014 Requirement Assessor Qualification Compliance sector. Good Agricultural Practices (GAP), and Integrated Pest Management (IPM), pesticide and fertilizer use. Health and safety auditing on the farm and in processing facilities, for example OHSAS 18001 or Occupational, Health & Safety Assurance System. Worker welfare issues and social auditing experience, for example with SA8000 or related social or ethical accountability codes. Anita Masduki (AM) Performed 29 RSPO P&C audits since 2011 Yuda Budiutama (YB) Performed 12 RSPO P&C audits since 2012 Chaiyaporn Seekao (CS) Performed 16 RSPO P&C audits since 2012 Yuda Budiutama (YB) Bachelor degree from Forestry Faculty, Bogor Agricultural University. Supijatno (SJ) Lecturer of Fac. Agric Bogor Agric. Indonesia University. Division Plant Production Anita Masduki (AM) Training : Occupational Safety and Health Audit Scheme (OSHAS) 18001, Jakarta 2002; Audit experience as auditor OHSAS 18001 until now (without accreditation) for local companies Yes Faroby Falatehan (FF) Degree in Agriculture Social Economic Sciences from Bogor Agricultural University, Master of Planning and Public Policy, Faculty of Economics (2003 2005). Has been working as a lecturer in Agriculture Social Economy Department, Bogor Agricultural University. Involved in various social projects. Yes Yes Participated in more than 5 RSPO audits. Performed social impact assessments. Environmental and ecological auditing, for example experience with organic agriculture, ISO 14001 or Environmental Management Systems (EMS). Fluency in the main languages relevant to the location where the specific assessment is taking place, including the languages of any potentially affected parties such as local communities. Anita Masduki Diploma Environmental management and training of internal auditor training ISO14001. Between 1989 -2004 she worked as Study Team leader for Environmental Impacts Analysis. Since 1997 she is an ISO 14001 auditor Yuda Budiutama Worked from 2005- 2010 as Environmental officer at PT. Sucofindo (Persero), training on Environmental Impact Assessment (EIA) (2009) and Environmental Law Enforcement training (2007) Anita Masduki Indonesian nationality Yuda Budiutama Indonesian nationality Yes Yes 3.3 Assessment methodology 3.3.1 General overview The assessment was carried out following the TÜV NORD Integra RSPO P&C Certification Procedure. During the assessment the assessors used the RSPO standard as endorsed for the country in which the assessment took place and recorded their findings. Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 25/ 57 PT Tapian Nadenggan- July 14-15, 2014 3.3.2 Assessment agenda The audit schedule is as below. Table 3-1 Audit Schedule Date Place P&C Main Activities 14.07.2014 Langga Payung Office 08.00 – 08.30 Brief explanation from RSPO Team on General Information for RSPO, Confirmation Audit Schedule 08:30 - 12:00 Langga Verification for previous NC at Estate Payung Estate Principle 3: 3.1 Documentation and field audit according each Principle 4 : 4.1, 4.2, 4.3, 4.4, principle and criterion, as well as its indicator 4.5, 4.6, 4.7, 4.8 Principle 5 : 5.1, 5.2, 5.5 Principle 6 : 6.1, 6.2, 6.3, 6.5, 6.6, 6.7, 6.8, 6.10, 6.11 Principle 7 Principle 8 : 8.1 08:30 - 12:00 Langga Principle 3: 3.1 Verification for previous NC at Mill Payung Mill Principle 4 : 4.1, 4.6, 4.7, 4.8 Documentation and field audit according each Principle 5 : 5.3, 5.4, 5.6 principle and criterion, as well as its indicator Principle 6 : 6.5, 6.6, 6.7, 6.8, 6.10, 6.11 Principle 8 : 8.1 Supply Chain 12:00 - 13:00 Break and lunch 13:00-17:00 Stakeholder Principle 1: 1.1, 1.2, Public consultation with stakeholders of the Meeting Principle 5: 5.1, 5.2 company Principle 6: 6.1, 6.2, 6.3, 6.4, 6.10, 6.11 13:00-17:00 Langga Principle 1: 1.1, 1.2 Documentation audit according each principle Payung Office Principle 2: 2.1, 2.2., 2.3 and criterion, as well as its indicator 15.07.2014 Day Two at Payabaung Estate 08:00 - 15:00 Payabaung Principle 4: 4.1, 4.2, 4.3, 4.4, Documentation audit according each principle Estate 4.5, 4.6, and criterion, as well as its indicator Principle 5: 5.5, Principle 7, Principle 8: 8.1 08:00 - 15:00 Payabaung Principle 4: 4.7, 4.8 Documentation audit according each principle Estate Principle 5: 5.1, 5.2 and criterion, as well as its indicator Principle 6: 6.1, 6.2, 6.3, 6.5, 6.6, 7, 6.8, 6.10, 6.11 Principle 8: 8.1, 15:00 - 17:00 Langga Payung Office 17:00 - 19:00 Langga Payung Office Auditor AM, YB, SJ, FF YB, SJ, FF AM, FF AM, FF YB, SJ YB, SJ AM, FF Reporting AM, YB, SJ, FF Presentation of audit result AM, YB, SJ, FF Number of assessors participating: <3> Number of days spent for the assessment on site: <2> Total number of person days used for the assessment on site: <3,5> 3.4 Outline of how stakeholder consultation was managed 3.4.1 Summary As part of the document review, the audit team reviewed the list of local stakeholders provided by PT Tapian Nadenggan (PTTN). Based on the updated list of stakeholders for Langga Payung Mill and its supply base, the audit team arranged for a stakeholder meeting during the assessment on July 14, 2014. The audit team picked up the names from the stakeholder list and asked the company to invite them to the meeting. In general, they were invited to make any comments on several issues related to them, such as: Information about RSPO to the public and stakeholders Company approach to community development. Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 26/ 57 PT Tapian Nadenggan- July 14-15, 2014 Environmental protection. Biodiversity conservation. Opportunities for employment. Provision of housing, sanitation, amenities and educational support. Participation in decision making. complaints and grievance, land conflict (If any) Any other issue, both positive and negative that relevance to the assessment. 3.4.2 List of contacted stakeholders Public consultation meeting was held at Langga Payung Mill Office, and below is the list of stakeholders who were attending the meeting (seeTable 3-2) No 1. 2. 3. 4. 5. 6. 7. 8. 9. Table 3-2 List of stakeholders Statutory Bodies Forestry and Plantation Regional Agency of Labuhan Batu Selatan Head of Police of Kotapinang Sector Man Power Regional Agencyof Labuhan Batu Selatan Address Name in Contact List Rantau Prapat Village Rosihan Nur Kotapinang Village J. Panjaitan Kota Pinang Village Sutrisno Environmental Regional Agencyof Labuhan Batu Selatan Kotapinang Village Dodi Head of Kotapinang Village Kota Pinang Village Hasian Harahap, SE Head of Kotapinang Village Mampang Mampang Village Elnazri Nasution Head of Kotapinang Village Normark Normark Village Ponirin Head of Kotapinang Village Hadundung Hadundung Village Ruslan Rambe Community Representative of Kota Pinang Village Kota Pinang Village Humala Hafna, S.Pd Mampang Village Mahyuni Siregar Normark Village H. Muin Siregar Hadundung Village Aliono Abdi 10. Community Representative of Mampang Village 11. Community Representative of Normark Village 12. Community Representative of Hadundung Village 13. CV Resima (Building and Road Contractor Representative ) Mampang Village M. Romadon Nst 14. CV Sinar Kayangan (Building and Road Contractor Representative ) Normark Village Melly 15. CV Fatila Abadi (Building and Road Contractor Representative ) Hajoran Village Lahmudin Siregar 16. Yayasan Labuhan Batu Selatan Membangun (Non Goverment Organisation) Hadundung Village Int rspo pc cld clr asa sum e - v02–28/05/2014 Rudi Hartono p. 27/ 57 PT Tapian Nadenggan- July 14-15, 2014 4 Assessment findings 4.1 Summary of findings by RSPO Principle and sample of the Criteria The assessment team conducted a thorough assessment of each principle and some example criteria. Over the 5 year period of the life of the certificate, there will be 4 annual surveillance audits in which different criteria will be assessed. Evidences were sought for conformity with the RSPO NI of both systems and their implementation. The summary of the assessment can be seen below, where “Findings/Comments” column reflects the findings in accordance with each criteria and indicator or evidences that were, and when non conformity was found, a summary of the non-conformity can be found in 3.2.2. FINDINGS/COMMENTS COMPLIANCE Principle 1: Commitment to transparency Criterion 1.1 (C.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. PT Tapian Nadenggan (herein after written as PTTN) still maintain procedure for communicating with stakeholders as described in Standard Operating Procedure/SOP Komunikasi dan Konsultasi dengan Stakeholder No. PT.TN-LPYM/RSPO-SOP/03 dated on 01.07.2010.All the heads in the mill / estates are required to provide adequate information as required by the RSPO criteria. There was no specific form, but PTTN provide information and suggestion box placed in front of estate/ mill office and checked regularly every week. Stakeholder’s aspiration, especially for asking donation will be considerate to perform CSR program. Yes The mechanism to perform the CSR still remain through the SOP No. 014/SOP.CSR/05/2011, dated 1 July 2011. The requests and responses for information are recorded in the Buku Komunikasi Konsultasi dan Tanggapan. (1.1.1). The response(s) are within one week after the request had been received whether they are approved or not. (1.1.2). The records of requests / responses will be kept for 5 (five) years as stated in SOP Pengendalian dan Masa Simpan Dokumen No.PT.TN-LPYM/RSPO-SOP/04 dated on 01.07.2010(1.1.3). Auditor took sample of information request during January-June 2014 period and found that the company responded it accordingly. The sample of request such as: donations to local school, mosque, and road grading, training for smallholder and independent growers. Auditor noted that the company has followed up these requests respectively. Criterion 1.2 (C.1.2) Management documents are publicly available, except where these are prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes. All management documents on legal, environmental, health safety and social issues are publicly available upon request. The legal documents are : • Izin Lokasi (Site Permit), • Izin Usaha Perkebunan (Plantation Operation Permit) • HGU (Land Use Title) As mandatory regulation of Ministry of Environment and in accordance with environmental issue, PTTN has prepared Environmental and Social Impact Assessment (Analisis Dampak Lingkungan/AMDAL)and its Environmental Management and Monitoring Report (Laporan Upaya Kelola dan Pemantauan Lingkungan/UKL-UPL). Report UKL-UPL for Semester-2 2013 is available. PTTN also comply with the mandatory regulation from Ministry of Labour Affair and perform Occupational Health and Safety Management System (Sistem Manajemen Keselamatan Int rspo pc cld clr asa sum e - v02–28/05/2014 Yes p. 28/ 57 PT Tapian Nadenggan- July 14-15, 2014 dan Kesehatan Kerja/SMK3). Progress on the Health and Safety Program is reported regularly to the Ministry of Labor Affair of Republic of Indonesia (1.2.1). All the records are properly kept for the proper periods as stated in SOP Record Control (SOP Pengendalian dan Masa Simpan Dokumen) No.PT.TN-LPYM/RSPO-SOP/04 dated on 01.07. e.g., safety, health and environment and social records 5 years and legal records indefinitely (1.2.2), and are available on request. During the yearly public consultation with stakeholders as part of its CSR program this environmental and social information are discussed with them and minutes of meeting was available and reviewed Principle 2: Compliance with applicable laws and regulations Criterion 2.1 (C.2.1) There is compliance with all applicable local, national and ratified international laws and regulations PTTN keeps copies of all the legislations / regulations applicable to it from the applicable regulation list in SOP Regulation Compliance (SOP Evaluasi Pemenuhan Peraturan dan Persyaratan Lain, P. TN-LPYM/RSPO-SOP/06 dated on 01.07.2010. Evaluation is done regularly every six months by RSPO Officers in each unit which has to keep track of its (PTTN's) legal requirements and make sure that they are complied with. Since PTTN has SM-K3 certification by Ministry of Labor of Republic Indonesia, the RSPO Officer has to make sure that the responsible personnel - engineers, boiler men, electricians, have the necessary qualifications, and the equipments - boilers and diesel generators - have the necessary certifications and the permits are still valid. The evidence of evaluation is recorded in “Form evaluasi kepatuhan kepada Peraturan, Perundangan dan Persyaratan lainnya (02/ENVD-EK-LH/X/2010)”, the last evaluation was done on 12.01.2014. All the documents were checked and found to be in legal compliance. Yes Criterion 2.2 (C.2.2) The right to use the land can be demonstrated and is not legitimately contested by local communities with demonstrable rights. SMART Tbk took over the land from established company PT. Tapian Nadenggan in 1989, and not directly from the local community. The mill / estate managers have ensured proper registration of their HGU certificates in register. (2.2.1). Documents that showing legal ownership or lease had been verified, i.e. as listed below: Land Use Title Number (HGU) Location Issued Date Valid until Area (Ha) Payabaung Estate 23/HGU/DA/82 (BPN Decree No. 107/HGU/BPN/.2004 date 25 Oktober 2004, certificate HGU No. 1) Desa Batang Nadenggan, Kec. Sungai Kanan, Kab. Labuhan Batu 18/12/1992 31/12/2027 1.209,15 Payabaung and Langga Payung Estate 23/HGU/DA/82/A/68 (BPN Decree No. 108/HGU/BPN/.2004 tgl 25 Oktober 2004, Certificate HGU No. 1) Langga Payung Estate 14/HGU/1989 (BPN Decree No. 106/HGU/BPN/.2004 tgl 25 Oktober 2004, Certificate HGU No. 1) Desa Sihopuk Baru, sihopuk Lama, Situmbaga, Hutabaru Nangka, Siancimun, Rondaman, kec. Padang Bolak, Kab. Tapanuli Selatan, Prop.Sumatera Utara Desa Huta Baringin dan Desa Ujung Batu Julu, Kec. Barumun Tengah, Kab. Tapsel 24/12/1992 31/12/2037 1.765,47 30/08/1999 31/12/2024 4.985 Normak Estate 5/HGU/BPN/2005 (SK BPN No. 51/HGU/BPN/2005 tgl 15 Februari 2005, Certificate HGU No. 1)) Desa Perkebunan Normark, kec. Kota Pinang,Kab. Labuhan Batu Selatan 25/02/2005 31/12/2029 2195,10 Int rspo pc cld clr asa sum e - v02–28/05/2014 Yes p. 29/ 57 PT Tapian Nadenggan- July 14-15, 2014 PTTN still maintain procedures to assure the right to use land (Land Titles Use) and to resolve conflict through procedure (SOP) such as Procedure of How To Get Land Use Title (Prosedur Perizinan Dalam Rangka Mendapatkan HGU/Hak Guna Usaha) Procedure of Land Release (Prosedur Pembebasan / Ganti Rugi Lahan) and Procedure of Conflict Handling (Prosedur Penanganan Penanganan Konflik Eksternal Perusahaan).The company has received the Land UseTitle from local government. Currently, there are no claims on TAPIAN NADENGGAN COMPANY-Langga Payung Mill by anybody. 4.1.1 The boundaries of PTTN were easily identified as the boundaries are demarcated by T-0 pillars, their identification numbers corresponding with points in the maps in HGU (Land Use Title) (2.2.2). There is a mechanism to monitor the boundary stones periodically using the format of Boundary Stones Monitoring (Form Pemantauan Patok Batas). (Left) Boundary marker from BPN (National Land Agency) 5 Boundary stones were encountered along the legal boundaries of all the estates. The auditor observed that most of them were properly maintained. List and photograph of boundary stones were available. The legal status of boundary stones was approved by Badan Pertanahan Nasional (National Land Agency). The mechanism to monitor the boundary stones periodically is available and the monitoring activities is well recorded. Criterion 2.3 (C.2.3) Use of land for oil palm does not diminish the legal rights or customary rights of other users, without their free, prior and informed consent. During the discussion with the stakeholders in the public consultation on July 14, 2014, it was confirmed there was no customary right of other users. Yes Principle 3: Commitment to long-term economic and financial viability Criterion 3.1 (C.3.1) There is an implemented management plan that aims to achieve long term economic and financial viability. PTTN has long term projection (2015 – 2020) for its crop, including key performance data for its mill and estates as part of its long term economic planning under all corporate entities of SMART Tbk Group, including mill allocation, production of FFB (tonnage) FFB/ ha (yield); OER, by predicting inflation rate; exchange rate; interest rate; portion cash; dividend; non deductible expensive; working hours; turnover; % allowance for doubtful accounts, age of asset; price of FFB purchase. During the projection period the mill capacity is 60 ton FFB/ hour and there are no plans to increase the mill capacity or extend to increase planted area as seen in Profitability Report below. Indicator Mature plantation (Ha) Mill capacity (ton FFB/ hour) 2014 2015 2016 2017 2018 2019 2020 6,094 5,616 5,304 4,906 4,898 5,728 6,519 60 60 60 60 60 60 60 Yes Total FFB processed (ton) - LPYE 82,025 64,169 61,171 62,997 62,100 82,003 97,268 - PBNE 54,451 36,889 33,301 3,231 26,979 24,841 28,791 Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 30/ 57 PT Tapian Nadenggan- July 14-15, 2014 - NRME 45,219 - FFB purchased 72,461 45,183 47,060 48,631 49,310 48,457 45,839 72,461 72,461 72,461 72,461 72,461 72,461 Total CPO own production (ton) 40,881 39,042 37,686 37,280 36,346 40,344 44,667 Total PK own production (ton) 10,901 11,411 10,050 9,941 9,692 10,758 11,911 Sales CPO (Million Rp) 323,910 286,957 276,992 274,009 267,146 296,252 328,302 Sales PK (Million Rp) 43,106 38,188 36,862 36,465 35,552 39,461 43,690 PTTN also provide replanting program for its supply bases as shown in Table 5. During annual surveillance assessment the auditor verified and visited the replanting area. There was replanting program covering an area of 210.09 Ha in Langga Payung and 209.06Ha in Payabaung Estate. Principle 4: Use of appropriate best practices by growers and millers Criterion 4.1 (C.4.1) Operating Procedures are appropriately documented and consistently implemented and monitored PTTN still maintain Standard Operating Procedures with the best practices for its mill and estates operations. The mill has been certified to QMS ISO 9001 and HSE management SMK3 by the Ministry of Labor of Indonesia. Most of the Standard Operation Procedures are incorporated in the SM-K3 management The following procedures are applicable and implemented within sustainable palm oil: Major NC a. SOP for Oil Palm (containing aspects from nursery, land preparation, planting, upkeep, harvesting, waste management, HCV, emergency preparedness and response, and environmental monitoring). b. SOP for Palm Oil Mill (containing stages of process, boiler, power generation, water treatment, land application, electrical system, quality (incl. monitoring of CPO parameters), dispatch and laboratory). c. Manual and SOP for Environment Management System, Health & Safety and SPO (containing application of pesticides, use of PPE, emergency preparedness). However, not all the procedures established are adequate or properly implemented. It was found that quality inspection was conducted inconsistently after harvesting. It was found that the loose fruit were found scattered > 50 pieces in palm circles (piringan) and in harvesting point areas, while according to Working Instruction “Picking Loose Fruit and Harvesting Inspection” does not allow more than 0.25 kg/ha or 18 loose fruit/ha or equivalent 1 piece/palm circle . Minor NC is upgraded to Major NC since the reoccurance of this NC. See NCR No.1 Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 31/ 57 PT Tapian Nadenggan- July 14-15, 2014 Criterion 4.2 (C.4.2) Practices to maintain soil fertility at, or where possible improve soil fertility to, a level that ensures optimal and sustained yield Sinar Mas Agro Research Institute SMARTRI is an entity of SMART group which focuses on research. It has a laboratory to carry out and make annual fertilizer recommendations based on oil palm soil testing and analysis. Usually the soil analysis are performed on a three year base, while oil palm leaf analyses are performed on a yearly base. Reports of analysis have shown that the company complied with this policy, for example in Payabaung estate, last analysis for soil was on February 28, 2013 and for oil palm leaf on May 31, 2014, while in Langga Payung last analysis for soil was on December 6, 2013 and for oil palm leaf on May 31, 2014. Yes There were agronomic practices to improve and maintain soil fertility implemented in PTTN, such as SOP of No. SOP/SMART/MCAR/IX/TA-PPK dated on 01 September 2012 rev.00. This SOP was used as best practice reference of soil fertility management including the use of organic fertilizer, planting Legume Cover Crops, pruning and frond stacking and weeding. The application of POME as organic fertilizer in Langga Payung Estate is based on land application research by Lembaga Penelitian Universitas Sumatera Utara. The dosage of effluent application in Langga Payung Estate was 30 ton/ha. Criterion 4.3 (C.4.3) Practices to minimize and control erosion and degradation of soils PTTN has provided maps of fragile soils and established management strategy to minimize and control erosion and degradation of soils by planting Legume Cover Crops; terracing in unduly to steeping area, pruning and frond stacking and have a road maintenance program. PPTN also established procedure for land preparation for replanting. All managed soils are mineral soils. For example in Normark Estate the dominant mineral soil type is Typic Dystropepts with sandy clay loam texture with an area of 1,266.57 ha (57.7%) and percentage of humidity is medium level (60 – 80%). There are no peat soils in company’s planted areas. Criterion 4.4 (C.4.4) Practices maintain the quality and availability of surface and ground water PPTN has an implemented water management plan. Water management included monitoring of rainfall and all water usage and discharge. Water management system makes use of a river as the main water source for palm oil mill. The needs of the estates are obtained from rain water. For processing at the mill, the water is supplied from the water artificial reservoirs with length 150 meters, width of 76 meters, a depth of 5 meters which under normal operating conditions with no water supply (without rain) can last 2 months. Record of water using per ton FFB is available. Yes Yes For example records of water using in mill year 2013 as described below : - FFB processed = 239.140.250 kgs or 239,140 tons - mill capacity (throughout) = 58,19 ton FFB/hour - CPO produced = 52,260 tons CPO - kernel (PK) = 13,747 tons PK - OER (Oil Extarctions rate ) = 21,85 %, - KER (Kernel extraction rate) = 5,75 % - working hours of FFB processes = 4,109 hours - process water = 28,030 m3 - boiler feed water = 185,334 m3 - total water usage = 213,364 m3 3 - ratio of water used: 0.89 m /ton FFB processed Water management is also applicable in the mill. The company provided the water balance, indicated the amount of intake water, processed water, and waste water coming and outgoing to and from the mill.To avoid the contamination of river water, PPTN installed a HCV area along the river banks. There are several sign boards of HCV 4.1 to warn people for not hunting and fishing and to remind workers for not applying fertilizer and pesticides to its oil palms in the riparian zones – a 50 meter belt along the river banks, the palm inside the limit zone were marked with red Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 32/ 57 PT Tapian Nadenggan- July 14-15, 2014 cross - and no replanting of oil palm will be done along all river banks. The POME was applied into land instead of discharged into river. The average of regular monitoring result of BOD and pH in 2013 and 2014 were still within allowable range of the applicable national regulation i.e Decree of Environmental Ministry No. 28/2003, with maximum BOD of 5000 ppm and pH 6-9. The BOD data are submitted six-monthly in RKL/ RPL to the Regional Environmental Monitoring Agency (Badan Pengendali Dampak Lingkugan Daerah/BAPEDALDA). From the last Semester 2 (July-December 2013) data, the BOD range were between 3,896 up to 4,723 ppm and PH between 6.5 up to 7.8. PTTN has monitored rainfall data daily. The implementation for rainfall data is still in accordance with nursery activities. Spraying using mist blowing method for young palms in nursery areas during January – June 2014 was conducted consistently based on rainfall data as required by Working Instruction IK/SMART/MCAR/III/TA-BBT/07. Criterion 4.5 (C.4.5) Pests, diseases, weeds and invasively-introduced species are effectively managed using appropriate Integrated Pest Management (IPM) Techniques PTTN still maintain an Integrated Pest Management (IPM), practices incorporating cultural, biological, mechanical or physical methods, by : 1. Identification of pests, diseases and weeds before it become an outbreak of maximum level 2. Introducing of beneficial plants for hosts of pests. 3. Introduction Barn Owl (Tyto alba) 4. Planting Legume Cover Crops (LCC) 5. Frond stacking 6. Minimize use of agrochemicals. Yes Oil Palm Leaf Eater Control includes detection, census, examination, treatments, evaluation, monitoring and organisation. Planting beneficial plants, such as Bunga pukul delapan (Turnera subulata) and air mata pengantin (Antigonom leptosus) to harbor predators of the crop pests. . The beneficial plants usually are planted along both sides of the roads of immature area and mature area as well. The barn owl or Burung hantu (Tyto alba) is protected and encouraged as a natural predator of rats. Census of Tyto Alba is conducted monthly using PVC stick and lenses as ‘”periscope”. The use of pesticides is minimised by only implementing for severe infestation in selected area and not using blanket method. Rodenticides were not used in 2013 and 2014 in Langga Payung and Payabaung Estate. Monitoring of pesticide toxicity units records was available per estate’s division, for example: LD 50 for Glyfosat 480 SL and Metil Metsulfuron 20 WDG were calculated based on the total usage of both Glyphosate and Methyl Metsulfuron per hectare, multiplied by LD 50 for oral and dermal stated by the manufacturer, and multiplied by the active matter. For example, the list of pesticide usage in August 2014 is showed below. The table shows that the value of pesticide toxicity as indicated in pesticide unit column are very small. Pesticide Toxicity Data in August 2014 FFB production:12,089 Ton Product name Active Substance Herbicide Erkafuron Rolixone 278 SL Roll Up 480 SL Starane 250 EC Metsulfuron Methyl Paraquat dichloride Isoprophyl Amine Glyphosate Fluroxypyr LD 50 % Active Substance Amount of application (litre) Active Substance in total (litre) 5,000 0.6 3,495 2,097 90.9 0.42 59.15 24.84 5,000 0.41 323.60 132.7 2,000 0.3 71.25 21.3 Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 33/ 57 PT Tapian Nadenggan- July 14-15, 2014 Garlon Insecticide/ Acaricide Decis 25 EC Marshal 5G Fungicide Dethane Triclopyr 2,574 0.44 0 0 Deltamethrine Carbosulfane 416 185 0.025 0.9 1.52 856 0.038 710.5 Mancozeb 10,000 0.8 2.36 1.88 Criterion 4.6 (C.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 categorized as World Health Organisation Type 1A or 1B, or are listed by the Stockholm or Rotterdam Conventions, growers are actively seeking to identify alternatives, and this is documented. There is a list of pesticides used and pesticides stocks in the ”Balance Stock Agrochemical in Minor NC 2014”.The list was in accordance with the Regulations of Ministry of Agricultural (Peraturan Menteri Pertanian/Permentan No 1/2001), WHO and Rotterdam convention. This list is issued and distributed to Procurement Division. Only procurement division can buy and supply pesticides. PTTN still maintain a procedure on how to apply agrochemicals, according to the Regulation of the Ministry of Agriculture or Peraturan Menteri Pertanian No. 1/Permentan/OT.140/1/2007 regarding Daftar Bahan Aktif Pestisida Terbatas (List of Restricted Pesticides). All the agrochemicals used are registered and approved by Pusat Perizinan dan Investasi Sekertariat Jenderal Departemen Pertanian (The Investment and Permit Center Agriculture Department, Republic of Indonesia). The table below mentions the pesticides used in Langga Payung and Payabaung Estate. All these pesticides are still registered at the Department of Agriculture with validity dates varying from 2016 - 2019. List of restricted agrochemical and its validity as per August 2014 Product name Herbicide Erkafuron Rolixone 278 SL Active Substance Metsulfuron Methyl Starane 250 EC Paraquat dichloride Isoprophyl Amine Glyphosate Fluroxypyr Garlon Triclopyr Incecticide/ Acaricide Decis 25 EC Deltamethrine Marshal 5G Carbosulfane Roll Up 480 SL Permit from Ministry of Agriculture RI.2405/62011/T Validity 23.06.2016 23.06.2016 RI.2405/62011/T RI.01030120 042133 RI.01030119 88854 RI.01030119 79387 RI.01030119 96179 31.12.2018 15.04.2019 25.12.2018 04.01.2018 04.01.2018 Fungicide Dethane Mancozeb RI.01030120 042133 04.01.2018 Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 34/ 57 PT Tapian Nadenggan- July 14-15, 2014 PTTN has a policy that pregnant and breast-feeding women are prohibited from working with pesticides, and there are records of socialization of the policy to the female workers. No evidence that pregnant and breast-feeding women found working as pesticides applicator during the audit and last 6 months. The company actually has a policy to reduce the use of paraquat. But it was observed that the usage of Rolixone (Paraquat) in Payabaung Estate in 2012 was 572 litre and increased up to 772 litre in 2013, and the budgeted use of paraquat is 699 litre for 2014. A Minor nonconformity was raised due to the inconsistency to reduce the paraquat usage. (See NCR No. 2). Usage of agrochemicals was recorded in Data Penggunaan Bahan Kimia Beserta Dosis Pemakaian (Dosage of agrochemical usage). During 2014, the pesticides used in PTTN are the following : • Herbicides : Round Up 486 (active ingredient Isopropylamine salt of glyphosate); Lindomin 865 SL (active ingredient 2,4 D Dimethyl amine), Ally 20 WG (active ingredient Metsulfuron methyl); Glufo 150 SL (active ingredient Ammonium glufosinate). • Insecticides : Fenval 200 EC (fenvalerate); Waste material from agrochemicals including pesticides containers are properly disposed in accordance with Indonesian laws and regulations, Peraturan Pemerintah No 18/1999 tentang Pengelolaan Limbah B3 (Goverment Regulation regarding Hazardous and Toxic Waste Management). The procedure of SOP/PBNE/LBH Rev.00, dated 01.07.2011 about handling hazardous agrochemicals, provide MSDS, emergency facilities such as shower water and soap available if emergency situation happened still remains applicable. The company also maintains procedure SOP /PBE/LBH (Rev,00, 1 Juli 2010) to manage hazardous wastes, sand, and fabric cotton wastes.The procedure SOP/PBNE/LBH Rev.00, dated 01.07.2011 is also applicable for handling hazardous agrochemicals spillage. The procedure indicates that only trained persons for pesticide application technique are permitted and instructed for pesticides application in the field as stated in Working instruction regarding handling of hazardous agrochemicals spillage. Training and communication about the agrochemicals to the 43 agrochemical operators, was performed by the chemical supplier in February 6-7, 2014. There was evidence of regular medical check-ups for workers involved in handling hazardous chemicals. The auditors interview the agrochemical sprayers to find out whether they have any skin related disorders or rashes, breathing difficulties or nail abnormality which are classical symptoms of toxic reactions, and found there was no abnormal situation on this. Criterion 4.7 (C.4.7) An occupational health and safety plan is documented, effectively communicated and implemented. PTTN has established a safety, health and environment policy and certified Occupational Health Yes and Safety Management System or Sistem Manajemen Keselamatan dan Kesehatan Kerja/SMK3. The policy was under Letter of Management No. PTTN/LPYM/P2K3, dated on 03.01.2013.The organisation structure of Committee on Occupational Health and Safety or Panitia Pembina Keselamatan dan Kesehatan Kerja (P2K3), has been established and approved by the Ministry Office, as per Letter of Acknowledment No. 560/224/2014, dated on July 10,2014. Secretary of this Committee, Mr. Lambok Sihombing and his safety engineer, who daily monitors and inspects all facilities in the mill and estates,was responsible to communicate the health and safety policy and issues.There are regular meetings between the management and workers on health and safety issues. In 2014, this meeting was held on May 16. The minutes of the meeting were available and contained amongst others the discussion about some health and safety issues such as the implementation of safety procedures and PPEs as well as the effectiveness of emergency training and drill. All the permanent employees and contract workers are insured under Social Insurance for Labor or Jaminan Sosial Tenaga Kerja/JAMSOSTEK. The company pay the insurance monthly for all workers. Auditor checked and verified record of JAMSOSTEK payment installment and found it worked. All employees, especially those in high risk work, undergo an annual health examination with the results submitted to Dinas Tenaga Kerja – Balai Hiperkes Dan Keselamatan Kerja Provinsi Sumatera Utara (Department of Labor, Province of North Sumatra). Last medical checked up to all high risk worker was conducted during April 24 ~ 19 June 2014, including audiometric test and cholinesterase test, showed that result was good. PTTN provide 3 company clinics and 1 Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 35/ 57 PT Tapian Nadenggan- July 14-15, 2014 central clinic and there are 2 company physicians, nurses and midwives to serve the employees in mill and estates. The doctor visit the clinic twice a week, while during their absence, the nurses conduct daily operations and it is strongly recommended to prohibit the nurse to give prescription to the patients especially usage of antibiotic and prescription only medicine. Under SOP PTTM/LPYEM/PSM/25 Penanganan Pekerjaan Risiko Tinggi (High Risk Working Procedure) all high risks shall be prevented. All pesticide operators wereprovided with proper PPE, such as a mask, hand gloves, safety shoes, and body cover coat (apron). The company provides facilities for cleaning up after the spayer work and storage spaces for keeping PPE after use. Workers that work at noisy area are provided with ear muff and ear plug. The monitoring of noise levels are done at the mill every 6 months and the level is still below the allowable threshold of 85 dB. Noise levels, during June 2014, at the boiler station and the sterilization unit range between 76-84 dB. Usage of ear muff is a must to prevent hearing loss of mill workers exposed to noise. Notification of noise level and warning of the use of ear muff are available at site. All the operations have been risk assessed through HIRAC (hazard identification and risk assessment control) in accordance with Occupational Health and Safety Management System/OHSMS or Sistem Manajemen Keselamatan dan Kesehatan Kerja/SMK3. The risk assessment was updated yearly, and the last update was on January 17,2014. The P2K3 (Panitia Pembina Keselamatan dan Kesehatan Kerja/Occupational Safety and Health Commitee) team identified and analysed the risks for all routine and non-routine activities in Langga Payung POM, Langga Payung Estate, Paya Baung Estate and Normark Estate. The P2K3 team responsible to assured that all operationsequiped with necessary safety facility and equipment such as bund wall, spillage control pit, eye washer, fire extinguiher, sand, PPE, hydrants, First Aid (Pertolongan Pertama Pada Kecelakaan/ P3K) tool kits, (medical box) are available on worksites by regular checking in the mill and estates. PTTN has developed procedures for accidents and emergency preparedness, under SOPK3/01 dated on 03.01.2013. The effectiveness of this procedure is tested every year through emergency drill. Related SOP No. SPO/SMART/LH-18 for Hazardous Waste Handling and working instruction No. SMART/HESS-EHDP/SPDV/006/001 for Spillage Handling are available at relevant site. Workers in hazardous areas and high risk workers are provided training to minimize their risk in an annual training program on safety and health issues. The training includes training for First Aid (Pertolongan Pertama Pada Kecelakaan/ P3K), safety and health regulations and legislations of the Republic of Indonesia, and emergency drills. Workers trained in first aid are available in both estates and mill operations. Records of work accidents were compiled by the company physician every month, the records are kept 5 years and regularly submitted to DISNAKER, the Regional Labor Department, and JAMSOSTEK for insurance claims. The last training on safety and health was in December 2013, and there is a training program in 2014 as well. Auditor has reviewed and verified all training record and training program and found it was adequate and well managed Criterion 4.8 (C.4.8) All staff, workers, smallholders and contractors are appropriately trained. PTTN has developed a training procedure whichrequires the mill / estate managers to have identified the training needs in each section / department through SOP/SPO/SMART/LH/10Prosedur Pengembangan Karyawanand PTTN-LPYM/PSM/17 Prosedur Pengembangan Kompetensi SDM (Employee Training Procedure). These procedures aim to organize an annual training program which also covers contractors and smallholders (plasma smallholders). The training program in 2014 in all estates (LPYE,PYBE,NRME) and mill (LPYM) was established based on training needs. Training program was formulated on yearly basis. The training program includes spraying practices, Integrated Pest Management, Occupational Health and Safety, toxic and hazardous substances, toxic and hazardous waste management, and fire prevention and control, and is available for workers exposed to high risk area such chemical sprayer, noise, and HCV area. Realization of training during the year 2013 for the three estates and mill consists of: Int rspo pc cld clr asa sum e - v02–28/05/2014 Yes p. 36/ 57 PT Tapian Nadenggan- July 14-15, 2014 1. General Safety and Health Training (5 persons, dated July 24, 2013) 2. Use of limited pesticides/ IPM (15 persons, dated March 27, 2013) 4. Use of PPE (32 persons, Jan 2013 and November 7, 2013) 5. Safely Agrichemical Spraying (28 persons, May 2013) 6. HCV inspector (4 persons, Feb 2014) 6. Fire drill (43 persons, Dec 2013) For all trainings there was an evaluation by each supervisor to ensure whether the training was effective or not. Evidence of implementation of employee training is available in the format Laporan Dan Evaluasi Hasil Pelatihan Karyawan Kebun Dan Pabrik kelapa Sawit/PKS (Report and Training Evaluation for Estate and Mill Employee). Evaluation of the training identified the strengths or weaknesses as well the effectiveness of the training. Training records for the period 2013~2014 were available. The training also involved the third parties, such as the general contractor for building and road maintanance and outgrowers (FFB suppliers). This training includes the explanation of environmental aspects and impacts, the hazard identification and risk assessment control, and the operational control related to the environment and safety. It was noted that on July 24, 2013 there was a General Safety Training held by the company which involved the contractors. Principle 5: Environmental responsibility and conservation of natural resources and biodiversity Criterion 5.1 (C.5.1) Environment 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. PPTN has developed the Environmental and Social Impact Assessment (Analisis Dampak Lingkungan/AMDAL)and its Environmental Management and Monitoring Report (Laporan Upaya Kelola dan Pemantauan Lingkungan/UKL-UPL). Six-monthly reports of RKL/RPL are submitted to Regional Environmental Monitoring Agency (Badan Pengendali Dampak Lingkugan Daerah/BAPEDALDA). ReportUKL-UPL for Semester I 2013 (Jan-Jun 2013) submitted on July 2013 and report for Semester-2 2013 submitted on January 2014 are available. These documents identify the impact of the mill and estate activities on the environment. The company conducted an environmental impact assessment (AMDAL) of its mill and estates operations but this has not been revised because there has been no changes in its operations that could have differently affected the environmental and socio-economic issues. Any adverse impacts identified will be studied for mitigation. The company implemented a part of the environmental management system ISO 14001 (e.g. environmental aspect and impact assessment, environmental monitoring, regulation compliance evaluation, environmental training etc), but did not apply for this certification for its mill and estates, Yes Criterion 5.2 (C.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. PTTN had a HCV assessment done by an independent consultant, CV. Aksenta, which has Yes identified HCV areas that cover a total area of 785.40 ha. The HCV areas are recognized with HCV’s 1.1, 1.2 and 4.1. There is a mechanism on identification of HCV’s through standard operating procedure/ SOP: SOP/NP/SMART/IV/LH001 tgl 01 Juli 2010 rev.01 Identification and Management of HCV or Identifikasi dan Manajemen HCV/NKT and the result of HCV’s identification was recorded inthe List of Protected Species or Daftar Spesies yang Dilindungi. Some sites of spring water area were found and protected. The HCV areas were identified with sufficient signboards and monitored as required in SOP. Monthly HCV monitoring reports conducted by a trained officer, Mr. Sony included monitoring of HCV sign boards and protected species. There was a weekly patrol to avoid violation in HCV area at Langga Payung and Payabaung Estate which had been done as required by the above SOP (SOP/NP/SMART/IV/LH001 tgl 01 Juli 2010 rev. 01). Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 37/ 57 PT Tapian Nadenggan- July 14-15, 2014 During the assessment the auditor visited one of the HCV areas at Payabaung Estate, Division 3 and Langga Payung Estate, Division 1. At Payabaung Estate it was identified and reported such as Sempadan Sungai Sipogas, Sungai Sijabi-jabi, sungai Aek Napanas, Sungai Batang Galoga, Mata Air, Sungai Paya Baung. The species that were identified such as Cekakak Belukar bird, Elang Coklat bird, elang hitam bird, elang tikus bird, Kuntul Kerbau, Rangkok Paruh putih, Macan akar, Beruk (variety of monkey), and Bunga bangkai flower (Amorpophalus sp) Picture. The HCV area spring water was found in Langga Payung Estate 7 Criterion 5.3 (C.5.3) Waste is reduced, recycled, re-used and disposed of in an environmentally and socially responsible manner PTTN has identified all waste streams in the waste management plan. Procedures are developed to manage all wastes, such as: - PTTN-LPYM/PSM/11 Pengelolaan Limbah (Waste Handling) - SOP/SPO/SMART/LH/09 Pengelolaan Limbah B3 (Hazardous Waste Handling) - SOP/SPO/SMART/LH/18 Pengelolaan Tumpahan (Spillage Handling) - WI/SMART/HESS-EHDP/SPDV/006/001 Pengelolaan Tumpahan B3 dan LB3 (hazardous Spillage Handling) Yes The company has identified all waste and pollutions sources in the mill and estates and listed them as Waste Balance in the report of Environmental Management and Monitoring Report (Upaya Pengelolaan dan Pemantauan Lingkungan/UKL-UPL) which is submitted six-monthly to Badan Pengendali Dampak Lingkungan / Bapedal (Environmental Impact Control Agency).These records of actual waste in the mill and estates are documented properly (5.3.1). Suitable methods have been established to minimize the production of waste and to minimize their environmental impacts. EFB is used as mulch for young palms in the field near mill in Langga Payung Estate Division II, IV, V and VI with the dosage of 30 t/ha, liquid waste treated in Instalasi Pengolah Air Limbah /IPAL (waste water treatment) to reduce their BOD and COD, with their pH monitored to the requisite standards. Analyses of POME for BOD, COD and pH are done regularly to ensure the parameters meet the standards, and reported in Environmental Managemenet and Monitoring Report (UKL-UPL) Semester II 2013 (5.3.2). The result of monitoring showing compliance. POME is used as land application in the field near mill in Langga Payung Estate. The hazardous wastes were collected by a licensed contractor, CV Amindy Barokah, license No.266/AB-LH/RPLB3/J/2013 valid until 28.03.2018. The records of hazardous waste manifest were well maintained. PTTN has a plan to return the waste container to the vendor and the mutual agreement has been signed. (5.3.3). PTTN still maintain the waste storage for hazardous waste, having license/permit from local environmental agency or Bapedalda No. 503/004/LA/VII which is valid until 29.11.2015. This waste storage equipped with necessary safety facility and equipment such as bund wall, spillage control pit, eye washer, fire extinguiher, sand, PPE, and related SOP No. SPO/SMART/LH-18 for Hazardous Waste Handling and working instruction No. SMART/HESSEHDP/SPDV/006/001 for Spillage Handling. The auditor found that the management of hazardous waste and its records was adequate and well managed and reported in Environmental Managemenet and Monitoring Report (UKL-UPL). The waste included pesticide containers, batteries, and waste oil and used oil filters. Other wastes such as spent engine oil, spent hydraulic oil (waste oil) and contaminated oil filters(SW410) as to the SOP/SPO/SMART/LH/09 Pengelolaan Limbah B3 (Hazardous Waste Handling) are properly handled, stored, labeled, transported, and disposed by licensed contractors, CV Amindy Barokah. All record of waste water, air emission, and hazardous waste, reported in RKLRPL(Environmental Monitoring Report) every six month and submitted to the Environmental Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 38/ 57 PT Tapian Nadenggan- July 14-15, 2014 Agency of North Sumatera Province. Auditor team has reviewed the Environmental Monitoring Report periode of January-June 2013 (Semester 1) and July-Dec 2013 (Semester 2). Criterion 5.4 (C.5.4) Efficiency of energy use and use of renewable energy is maximized PTTN use fibres and shell as bio fuel to generate steam for its turbine, and use diesel oil for its generator. Electrical energy generated from turbine and generator is used for mill operation. The generator set is only used as backup to generate electricity when the main turbine is down. Regular maintenance of mill engines (e.g.: boiler, sterilizer, BPV, Steam separator, Motor Compressor, turbine) and motor vehicles also contribute to increase energy efficiency rate. Record of fibre and shell were recorded in the Laporan Penggunaan Fiber dan Cangkang (Monthly Report of Fiber and Shell Use). It was noted that there was an increase in the use of turbines (bio fuel) of 78% at the beginning of the year 2013 to 85% at the end of the year 2013. The use of diesel fuel for generators at the end of the year 2012 was 121.621,000 liters (or 0.86 ltr/ton FFB) and 57,810 liters (or 0.41 ltr/ton FFB) at the end of the year 2013, or saving around 52.47% as reported in Laporan Penggunaan Fiber dan Cangkang (Monthly Report of Fiber and Shell Use) and Analisis Efisiensi Pemakaian Bahan Bakar Fossil (Usage of Fossil Fuel Efficiency Analysis). Yes Criterion 5.5 (C.5.5) Use of fire for waste disposal and for preparing land for replanting is avoided except in specific situations, as identified in the ASEAN guidelines or other regional best practice The use of fire for any reason is strictly prohibited, such as activities in land preparation of new developments and replanting. PPTN has a zero burning policy, and established procedure SOP/SPO/SMART/LH/06 Persiapan Lahan Pra Tanam Tanpa Pembakaran (Land Clearing with Zero Burning Technique Procedure) According to this procedure the use of fire for any reason, such as activities in land preparation of new developments areas and replanting is strictly prohibited. Yes In case fire happens, there is procedure of handling of fire stated in PTTN/LPYEM/PSM/06 Kesiapsiagaan dan Tanggap Darurat (Emergency Preparedness Procedure). As part of fire prevention, there is a fire fighting training provided by Dinas Pemadam Kebakaran (Provincial firefighting authorities) to person in charge in P2K3 Team (Emergency Team) and record of the training was available. Last training dated on May 19,2014. Fire extinguishers were present in various locations on site and all of them were checked regularly. Emergency alarm for getting attention and help during emergency was available and auditor has checked that it works well. Criterion 5.6 Plans to reduce pollution and emissions, including greenhouse gases, are developed, implemented and monitored. PTTN has identified pollution and emission sources, which mainly come from boilers, generator sets and motor vehicles (5.6.1). Monitoring of their exhaust emissions is done regularly by an independent laboratory, and the results were six-monthly reported to the Environmental Department Agency in a form of RKL-RPL (Environment Management and Monitoring). Reports of UKL-UPL for Semester 1 and 2 2013 are available. Yes The parameters tested for boilers are SO2, NO.2, H2S, particulate, etc. as per the Ministry of Environment Indonesia regulation “Peraturan Menteri Lingkungan Hidup No. 07/2007”. The average of 2 (two) times measurements in 2013 showed that all parameters were under control. The results of measurement are also available in Report of UKL-UPL for Semester 1 and 2 year 2013. For genset emission was tested against KepmenLH No. Kep-13/MENLH/3/1995, regarding Sumber Emisi Tidak Bergerak (Static Emission). Since the palm oil mill is not one of the industries mentioned in the Environmental Ministry Decree (KepmenLH) No. 13/1995 section 2 article 1, thus it is not an obligatory to install smoke density monitoring and recorder control equipment. But the mill is obliged to monitor the emission parameters in accordance with the regulations twice a year as per Environmental Ministry Regulation (PermenLH) No. 7/2007 Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 39/ 57 PT Tapian Nadenggan- July 14-15, 2014 section 6b.In order to comply with this regulation, boilers are equipped with smoke density monitors and recorder control equipment. The mill also has a Ringleman Smoke Observation Chart as per license requirements where the average result in 2013 complied with the standards. For ambience air quality monitoring as per Government Regulation (Peraturan Pemerintah RI/PP RI) No. 41/1999, the result showed no parameters above standard The treated effluent, palm oil mill effluent (POME) is applied for land application according to procedure SOP SOP/SPO/SMART/LH/18aPengelolaan Limbah Cair (Wastewater Handling Procedure). The BOD levels from ponds were monitored monthly according to this procedure and reported in the form Monitoring Analisis Limbah B3 & Monitoring Limbah Cair Pabrik. The measurement of BOD level during Semester 1 and 2 period 2013 was around 1,740~4,310 ppm (the allowed level was 3000-5000 ppm). 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. PTTN has performed the Social Impact Assessment report which has beenconducted by PTTN itself in June 2013. This assessment was conducted according toprocedure SOP/SPO/SMART/LH/12 Social Impact Assessment (Pengelolaan Dampak Sosial). The assessment includes details of positive and negative social effects that may be caused by plantations and mills, and documents participation of affected parties and local communities.During the assessment the company conducted several consultation and communication with relevant stakeholders. All records of communication and public consultation are available and properly documented incorporated in the report. Yes As a consequence of the report, PTTN has also conducted monitoring social impact by his own and reported in the Social Impact Assessment Monitoring Report, issued in January 2014. This monitoring has been conducted under procedureSOP/SPO/SMART/LH/13 Management and Monitoring Social Impact (Pengelolaan dan Pemantauan Dampak Social). Result of SIA monitoring report was discussed with their stakeholders during stakeholder meeting conducted on April, 17, 2014 to get the feedback from stakeholders. 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 PTTN still maintains procedure and has an effective communication and consultation procedure with smallholders and its local communities, under procedure SOP/SPO/SMART/LH/19 Communication and Consultation (Komunikasi dan Konsultasil) andSOP/SOC/PSM/9.01 about Social Communication Procedure (Komunikasi Sosial). These documents wereused to provide adequate information to other stakeholders on environmental, social and legal issues relevant to RSPO, through the policyof Communication and Consultation with Community. Consultation with stakeholders is done at least yearly, and the last minutes of the meeting of April 2014 are available at Langga Payung Mill Office.The Estate Manager was responsible for communication with the respective parties on estate activities, while the Environment and CSR Department took overall responsibility for communication and consultation with stakeholders and to ensure that community programs are run effectively. A list of PTTN stakeholders including the local communities, NGOs, labour union, contractors and local government as well as an attendace list ofstakeholders were available, well maintained and updated. The auditor has checked the minutes of meeting of the last stakeholder meeting and found the detail of minutes of meeting containing agenda as mentioned in the related procedure, SOP/SPO/SMART/LH/19 Communication and Consultation (Komunikasi dan Konsultasil). Int rspo pc cld clr asa sum e - v02–28/05/2014 Yes p. 40/ 57 PT Tapian Nadenggan- July 14-15, 2014 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. PTTN still maintain a complaints, grievance and dispute procedure as stated in SOP PTTNLPYM/RSPO-SOP/02Penanganan Keluh Kesah dan Ketidakpuasan (Complaint and Dispute Handling Procedure). If there is any internal complaint or grievance, it shall be resolved according to the Mutual Working Agreement (Perjanjian Kerja Bersama). These procedures have been communicated to all stakeholders at each mill / estate and to all internal workers as well. It was noted that the responses from stakeholders have been positive. During public consultation with respective stakeholders, the audit team confirmed that there were no serious complaints, grievances nor disputes at the moment. Local communities and stakeholders obey and respect the company legal rights, reciprocated by the company’s respect for their traditional rights. Yes 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 stake-holders to express their views through their own representative institutions. PTTN still maintain procedure No. SOP/NP/SMART/XII/MCAR001 dated on 01.07.2010Pedoman Teknis Persiapan Lahan SMART (Land Preparation Procedure). In this procedure, the audit team studied the whole compensation mechanism, and found it satisfactory with no legal action being taken by any party. The mechanism has been communicated to the stakeholders during the stakeholder meeting. Checks on the records and interviews with the local communities during public consultation confirmed that there is no current claim on any land. Based on HCV studies and ANDAL report there are no customary rights of local community. An interview with the Chief of Local Community confirmed that they have no customary rights disputes Yes 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. All salary regulations shall refer to Law No 13 Year 2003, Undang-undang Tenaga Kerja or Yes Labour Law.To comply this Law, there is a term and condition about wage at Perjanjian Kerja Bersama/PKB (Mutual Agreement between Company and Labour Union) between Board of Estate Company Corporation Sumatera(Badan Kerjasama Perusahaan Perkebunan Sumatra/BKS-PPS) and Central of Agriculture and Estate Labour Union Indonesia (Pengurus Pusat Federasi Serikat Pekerja Pertanian dan Perkebunan Serikat Pekerja Seluruh Indonesia/PP.FSP.PP-SPSI). According to this agreements and North Sumatera Governor’s Decree No. 188/KPTS/Tahun 2013, about Minimum Wage in Padang Lawas Utara Regency year 2014, minimum wage in Padang Lawas Utara Regency is Rp 1.601.100. PTTN follows all the legislations on working days, working time, salary levels, regional minimum pay and employee insurance. The salary scales and conditions of work are described in detail for all the positions of employment. Employees are also provided with rice allowance, for head of family is 15 kg plus 9 kg for wife and 7.5 kg for each children (maximum 3 children).HRD staff inform the workers on before-hand of their salary adjustments if any. The policy about wages is also mentionedin agreements communicated with contractors. Auditor noted that the payment complied with the regional minimum salary for North Sumatra in January 2014. Minimum salary paid by PTTN is Rp 1.665.500. (6.5.1.and 6.5.4). There are some facilities from the Estate to its workers, such as housing, water supplies, educational and medical. All workers, if heads of families, are provided with a housing unit type G2 (48 m2), equipped with electricity and piped clean water for washing and bath, and the test analysis of potable water using reverse osmosis method fulfills the requirements of potable water standard by PerMenkes/416/1990. The water supply is effective in an hour each day for every division, meanwhile the power is from the government power plant (PLN). Smart management has a policy about subsidized of power, the subsidize is about Rp 3,5000 per month (Decree: No Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 41/ 57 PT Tapian Nadenggan- July 14-15, 2014 021/01/MD/HR-SK/02/14) since March, 1, 2014, There are other facilities for workers such as policlinic, baby day care, kindergarten, school bus and sport facilities. There are nearby state schools ( 1 kindergarten, 4 elementary schools, and 1 junior high school which have been donated by PTTN as part of its CSR program.Scholarships to students and teachers are offered, and also book aid and learning kits under the company CSR program. There are 3 company clinics in housing sites and one central clinic where sick employees / dependents get free treatment. The more serious cases are referred to the regional hospital. (6.5.3). According to discussion with some workers, the estate/mills give them some facililies, such as emplacement (home), electric (Rp 35.000 per month), water, free school bus for their kid and others All the permanent employees and contract workers are insured under Social Insurance for Labor or Jaminan Sosial Tenaga Kerja/JAMSOSTEK. The company pays the insurance monthly for all workers. The auditor checked and verified record of JAMSOSTEK payment installment and found it worked. 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. PTTN has an agreement with the workers and management staff to allow them to establish a labour union in accordance with national Law UU No. 13/ 2003, Undang-undang Tenaga Kerja or Labour Law. The Union and management of PTTN negotiate the Perjanjian Kerja Bersama or Mutual Working Agreement regularly. The company provided a facility such a room for meeting for Union Worker Since they have a regular meeting, usually quarterly in a year. . Yes 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 programs. Children are not exposed to hazardous working conditions. According to Indonesian national Law, Undang-undang RI No. 13 Tahun 2003, article 68, no one under 18 years old to be employed. To comply this law PTTN has a policy on child and female workers as stated in Management Policy No. 002/SE-HRDV/03/09 dated on 13.01.2009regardingProhibition for Child Worker (Larangan Mempekerjakan Anak di Bawah Umur. This policy has been communicated to all worker, suppliers, and contractors respectively (6.7.1). No one under 18 years of age is to be employed. Records of personal data of employees - age, marital status, position and rank, location of work, date of commencing employment - are kept. Checking the records of the last recruitment and interviews with employees confirmed that no one under 18 years old has been employed - in compliance with Indonesian national legislation UU RI No. 13 Tahun 2003, article 68 (6.7.2). Yes 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. PPTN still maintain policy based on Undang-Undang No. 13 tahun 2003 tentang Tenaga Kerja (Law No 13/2003 about Labour) about equal opportunities for each mill and plantation. The policy indicated that workers have same opportunities for promotions regardless race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliations or age. Records of employee’s recruitment and its contract agreement were available. It was noted that company accepted new employee based on their capabilities and qualifications. In procedure PTTN/LPYEM/PSM/L17a Rekrutmen dan Seleksi Karyawan (Recruitment and Selection of Employee) and through interview with workers in mill and plantations. it was confirmed that there was no discrimination on working opportunities, all workers were treated properly. Criterion 6.9 Int rspo pc cld clr asa sum e - v02–28/05/2014 Yes p. 42/ 57 PT Tapian Nadenggan- July 14-15, 2014 A policy to prevent sexual harassment and all other forms of violence against women and to protect their reproductive rights is developed and applied. PTTN still maintain a policy on prevention of sexual harassment and protection of reproductive rights of its female workers as stated in “Peraturan Perusahaan pasal 5 ayat 3, SE No.145/CEO1SE/04/2010 dated on 13 April 2010 Perihal Sosialisasi Masalah Sexual Harassment“. The policy is socialized to the workers and contractors regularly. There is a gender committee established to resolve if sexual harassment occurs. Interviews with female workers confirmed that they really understood the policy about sexual harassment and the reproductive rights. The policy on sexual harassment and reproductive rights of women are imposed on contractors by being included in their contractual agreements. Female employees are entitled to menstrual leave for 2 days a month, pregnant and childbirth leave for total 3 months for each instance and also allowed to breastfeed for up to 9 months at least 30 minutes a day as stated in Perjanjian Kerja Bersama (PKB) or Mutual Working Agreement in Article 13. In this agreement it stated that pregnant and breastfeeding women can’t manipulate agrochemicals/ pesticides. Checks in the field concluded no pregnant and breast-feeding women were working with agrochemicals. Interviews with female workers confirmed that they understood the policy. Yes Criterion 6.10 Growers and mills deal fairly and transparently with smallholders and other local businesses. PTTN committed to establish fair, legal and transparent agreements with its suppliers / contractors and independent smallholders/ outgrowers as stated in SOP PTTNLPYM/RSPO/08Pembelian TBS Luar (FFB Purchase Procedure). There are transactions and purchase contracts with contractors and local companies on sale and purchase of FFB, FFB transport and service, maintenance and repair of mill equipment. The price for FFB is determined by the Head of Regional Plantation Section, Agriculture Department of Province North Sumatra via a mechanism based on the CPO price, kernel price (index K) from all palm oil producers and palm oil estates in North Sumatra. Information of FFB Price is sent by SMART to the Mill Office. It is shown in information board in front of mill office. According to this information board, there are two kind of price, first is for certified FFB and second for non certified FFB, Price for certified FFB is Rp.1,650 and for non certified FFB is Rp 1,600. Yes Information of FFB price is available in front of the Mill Office. Interviews during public consultation, July 2014, with some contractors confirmed that they understood the terms of their contracts well and thought them fair, legal and transparent and found no grievance about the price. Auditor checked and verified the payment to the contarctor and found it was complied to the contract agreement. Criterion 6.11 Grower and mills contribute to local sustainable development wherever appropriate. 5.1.1 PTTN is committed to support sustainable development of the local communities through its Corporate Social Responsibility programs which are presented in its Stakeholder meeting, the last stakeholder meeting was conducted in June 2013. Identification of projects is based on community needs, the priorities of each mill / estates and the budget available. There are some contributions to community around the estate, such as: - Blood donor in February, 19, 2014 - Cataract operation for community at Desa Sihopuk Baru, November, 15, 2013 (joint with Tzu Chi Foundation) - Sunatan massal (Mass Circumcision), June, 23, 2013 - Check for mouth and teeth of student at Kecamatan Halongonan, November, 14, 2013 (joint with Tzu Chi Foundation) - Distribution of human main needs (rice, cooking oil, sugar, flour and others) in Ramadhan for community around estate, July, 2013 Criterion 7.1~7.7 Yes N/A Principle 7 is not applicable to this assessment, since no new planting. The last new planting was conducted in 1987 (or 27 years ago) Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 43/ 57 PT Tapian Nadenggan- July 14-15, 2014 Criterion 8.1 Growers and mills regularly monitor and review their activities and develop and implement action plans that allow demonstrable continuous improvement in key operations. PTTN is committed to a process of continuous improvement by adopting the RSPO P & C and getting certified ISCC, QMS ISO 9001, EMS ISO 14001, and OHSMS/SMK3 for Langga Payung POM and its Supply bases. The company can clearly demonstrate improvement in quality, environmental, safety and health aspects, as well as social aspects, for both activities mills and plantations which are recorded in the Master Plan for Continuous Improvement. There was a mechanism through internal audit that organisation regularly monitor and review their activities, develop and implement action plans that allow demonstrable continuous improvement in some activities, such as: POME application using piping system between flatbeds. The benefit of this improvement for the foreman of land application can control the POME discharged from flatbed to flatbed by connect and disconnect pipes without fear of leakage in the last flatbed. Modified wings on Empty Bunch Spreader. Benefit: to prevent EFB to enter between the tires while EBS is charging or while EBS is running; to prevent surface friction and saves EBS tires. Monitoring of environmental impacts conducted on a regular basis and in conjunction with continuous monitoring and reporting the results of environmental management that has been conducted and reported to the relevant agencies on a periodic basis according to existing regulations. The company also made efforts to reduce emissions by reducing fossil fuel consumption as well as for energy saving. Campaign for water, electrical, and energy saving to all employees was conducted by distribution of stickers, pamphlets, as well as direct communication. Company intense communication and socialization to the shareholders of the policies and programs - CSR programs created and run by the company and periodically ask for feedback from stakeholders in order to improve the quality and quantity of programs that are relevant to the needs of the community / stakeholders in the company's operation. Major NC An internal audit and management review is done at least yearly to evaluate the systems. Action plans to follow up the audit findings as well as the management recommendation have been developed accordingly for continual improvement. Unfortunately the company was failed to demontrate the plan for reducing usage of agrochemicals especially paraquat. It was found that the usage increased during 2013 and 2014. For this reason, auditor team raised a Major Non conformity. Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 44/ 57 PT Tapian Nadenggan- July 14-15, 2014 4.2 Sample criteria for inclusion in this report on an annual basis during the lifetime of the certificate Criterion Year 1 Time-bond 1.1 1.2 2.1 2.2 2.3 3.1 4.1 4.2 4.3 Year 2 Year 3 Year 4 Criterion Year 1 Year 2 Yes Yes Yes Yes Yes Yes Min Yes x 5.3 x 5.4 x 5.5 x 5.6 x 6.1 x 6.2 x 6.3 x 6.4 x 6.5 x 6.7 Maj Yes Yes Yes Yes Yes Yes Yes Min x x x x x x x x x 4.4 4.5 Yes x 6.8 4.6 Maj x 6.9 4.7 Min x 6.10 Yes Min x 6.11 Yes x x 7 N/A x x 8.1 Yes x 5.1 5.2 Year 4 x Yes Maj/Min 4.8 Year 3 Yes Yes Min Yes Yes x x x x 4.3 Noteworthy positive components and identified non conformances 4.3.1 Details of noteworthy positive components The strong management commitment and the system implementation is very good.It can be found at mill and all estates which have been certified for many standard schemes e.g. ISCC, ISO 9001 and OHSSMK3. They have well established documented procedures, work instructions and also relevant forms that are required by the different standard schemes, so all documents and records can be easily found and verified. The understanding on the relevant procedures and working instructions have been seen during the audit on-site. PTTN has its own SAP (the computerized system program). This program is a very useful tool for traceability purposes, especially handling with the quantity of certified FFB from their estates, as well as certified CPO that is sold out to the buyers. This system is also helpfull to make a summary of the certified FFB input and CPO and PK output throughout the year. 4.3.2 Status of non-conformities previously identified. This section gives an overview of actions taken to close out non-conformities raised during the previous audits. If a minor non-conformity raised at the last audit, is not closed out, then this will be raised to Major Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 45/ 57 PT Tapian Nadenggan- July 14-15, 2014 status and the company will be given 60 days to close this out. It was found that there was 1 (one) minor non-conformity from ASA-1 which re-occured during ASA-2, so the auditor raised it to a Major nonconformity. 4.3.3 Detail of Non Conformities identified during this ASA This section gives an overview of new or revised non-conformities raised during this audit AUDIT OUTCOME During this audit, 2 Non-Conformities MAJOR 1 Non-Conformities MINOR Overview of findings As per RSPO Indonesian National International <INA-NI.ver.May 2008 Standard> Criterion Status* #NC Criterion Status* #NC Criterion Status* #NC Criterion Status* 1.1 1.2 1.3 2.1 2.2 2.3 3.1 4.1 4.2 4.3 4.4 Yes Yes Yes Yes Yes Yes Yes Maj Yes Yes Yes - 4.5 - 4.6 - 4.7 - 4.8 - 5.1 - 5.2 - 5.3 1 5.4 - 5.5 - 5.6 Yes Maj/Min Yes Yes Yes Yes Yes Yes Yes Yes - - 6.1 2 6.2 - 6.3 - 6.4 - 6.5 - 6.6 - 6.7 - 6.8 - 6.9 6.10 6.11 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes - 7.1 - 7.2 - 7.3 - 7.4 - 7.5 - 7.6 - 7.7 - 7.8 - 8.1 N/A N/A N/A N/A N/A N/A N/A N/A Yes #NC 1 - *“Yes” Compliant; “Min” Minor Non-Conformity; “Maj” Major Non-Conformity; “NA” not applicable, “NI” not inspected (only in case of surveillance assessments); “#NC: Number of Non-Conformities found Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 46/ 57 PT Tapian Nadenggan- July 14-15, 2014 Details of Nonconformities Non Conformity Number 01 RSPO – Criterion :PNC 4.1 Major 1 Location Langga Payung Estate (LPYE) Description of Finding/Objective Evidence: Loose fruit were found scattered > 50 pieces in palm circles (piringan) and in harvesting point areas, while WI “Picking Loose Fruit and Harvesting Inspection” does not allow more than 0.25 kg/ha or 18 loose fruit/ha. Minor NC is upgraded to Major NC since the reoccurence of the NC. Classification Major Corrective action Minor Deadline for implementation September 14, 2014 1. Communicating the Work Instruction IK/SMART/MCAR/XIII/TA-PNN/01-Panen to harvester, production foreman, and assistant of division to ensure the application of this work instruction No Stages of labor Results Working tools 16. Collecting all fruits in palm circle (piringan), track of All fruits collect until clean and no looses in trees, palm Bucket, machete, harvest (pasar rintis) and trees. circle (piringan) and track of harvest (pasar rintis) sack Bring all FFB and fruits harvested to TPH All FFB and fruits harvested appointed and arranged in Rickshaw, sack 18 TPH 22 Put fruits in TPH with paded sack Fruits in TPH quote neatly stacked adjacent to the Splt sack and arrangement of FFB, covered with a split sack, so fruits bucket can be clean and easier to transport. 25 Production foreman (Mandor produksi) must ensure all No fruit is ripe or not looses fruits, there is no lag in the Harvest rack has been completed under the supervision trees, palm circle and track of harvest. inspection form All ripe fruit is harvested and brondolan quoted net Harvest harvested and fruits quoted. 26 Production foreman (mandor produksi) shall conduct a detailed inspection every day to harvest at least 1 inspection form harvester 27 and pen Asistant Division, Mandor 1 and (production foreman) Not good harvesting can be determine earlier, standard Mandor produksi ensure crop production according to deviation does not occur harvest. standards 2. Socialization and implementation of harvest inspection according to SOP /SMART/MCAR/XIII/TA-PNN, IK/SMART/MCAR/XIII/TAPNN/01-Panen, and FORM/XIII/TA-PNN/01-Panen/01 to all production foreman (mandor produksi), and assistant division. Review of corrective action The evidence of socialization was available, verified, and accepted. The effectiveness of the socialization to be checked in the next surveillance audit Closed: Yes No The implementation of the corrective action will be counter checked during the next annual surveillance audit. Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 47/ 57 PT Tapian Nadenggan- July 14-15, 2014 Lead Auditor or Auditor, Date Anita Masduki, 05.08.2014 Non Conformity Number 02 RSPO – Criterion: INA-NI.Ver.May 2008 Standard, PNC 4.6, Minor 1 Location Paya Baung Estate Description of Finding/Objective Evidence: PNC 4.6, Minor 1 Documentary evidence that use of Chemicals categorised as World Health Organisation Type 1A or 1B, or listed by the Stockholm or Rotterdam Conventions, and paraquat, is reduced and/or eliminated. It was observed that the usage of Rolixone (Paraquat) in Payabaung Estate in 2012 was 572 litre. But in 2013 the usage increased up to 772 litre, and the budget for 2014 is 699 litre. Classification Major Corrective action Minor Deadline for implementation Next Surveillance Audit Year 2012 2013 2014 until June and projection July until Dec 2015 Budget Materials (L) 799,86 799,86 699,42 618,27 Realization usage (L) 575,25 772 641,89 N/A Budget Ha (Ha) 2.622,73 2.622,73 2.341,72 2.069,46 Spray application palm circle (Ha) 1.449,23 2.759,50 2.339,49 1.988,74 - An increase in the paraquat usage in 2013 about almost 200 liters because spraying of palm circle, track harvest, and ferns (pakisan) were not completed in 2012. So, it was work carried over from 2012 to 2013. - Management has targeted the usage of paraquat for spraying of palm circle and track harvest can be reduced at least 5% each year - Reduction of paraquat usage was replaced with glyphosate. Review of corrective action The evidence of paraquat reducing program is acceptable. The effectiveness of corrective action and reduce of paraquat usage to be checked in the next surveillance audit Closed: Yes No The implementation of the corrective action will be counter checked during the annual surveillance audit. Lead Auditor or Auditor, Date Anita Masduki, 05.08.2014 Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 48/ 57 PT Tapian Nadenggan- July 14-15, 2014 Non Conformity Number 03 RSPO – Criterion: INA-NI.Ver.May 2008 Standard, PNC 4.6, Minor 1 Location Paya Baung Estate Description of Finding/Objective Evidence: PNC 8.1 There is no action plan to reduce paraquat. Classification Major Minor Corrective action Deadline for implementation September 14, 2014 Reaffirming SOP Weed Control on LAMP / VIII / TA / 04- Paraquat and Monitoring Pesticides, page 2 and 3 as follows, Paraquat used must follow the following requirements: - Paraquat is only used to control weeds groups of Pakisan (Ferns) - Rotation of spraying palm circl, track harvest and TPH which is using contact herbicides (paraquat) replaced with a systemic herbicide (glyphosate). These based on actual field besides weed vegetation of Pakisan(Ferns) - Calibration of spray equipment to ensure that the appropriate dose herbicide can be applied, before application must be calibration tool by checking nozzle and calibration performed every week, if the flowrate> 10% of the specification, the nozzles should be replaced and the calculation of the volume of spray per ha corresponding attachments VII / TA-PGM / 02. Monitoring is using with form: Tabel 1. Monitoring using pesticide form Year Estate Type of Pesticide Tradename of Pesticide Quantity (Ltr) Ha Application (Ha) Target of Gulma 2011 PBNE Paraquat Rolixon 824,25 2.737,95 Pakisan (Ferns) 2012 PBNE Paraquat Rolixon 575,25 1.449,23 Pakisan (Ferns) 2013 PBNE Paraquat Rolixon 772 2.759,50 Pakisan (Ferns) 2014 PBNE Paraquat Rolixon 641,89 2.339,49 Pakisan (Ferns) 2015 PBNE Paraquat Rolixon 618,27 2.069,46 Pakisan (Ferns) Review of corrective action The evidence of paraquat reducing program is acceptable. The effectiveness of corrective action and reduce of paraquat usage to be checked in the next surveillance audit Closed: Yes No The implementation of the corrective action will be counter checked during the annual surveillance audit. Lead Auditor or Auditor, Date Anita Masduki, 05.08.2014 Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 49/ 57 PT Tapian Nadenggan- July 14-15, 2014 4.4 Issues raised by stakeholders Stakeholder meeting or public consultation was held on Monday 14/07/2014, from 2:00 to 4:00 PM, followed by 15 (fifteen) stakeholders, such as press, Department of Forestry and Estate Crops, Khatulistiwa NGO, the United Labour, commission of women, Head of Subdistrict Holomoan and community. During the meeting there was no management from PT Tapian Nadenggan present, so that the stakeholders were free to talk and give their opinion and complaint if any. The management responded to these issues writtenly after the audit during report writing. The resume of the stakeholder meeting is summarized below. Appreciation received: 1. The company has given many assistance to the community in forms of CSR program such as cataract surgery, mass circumcision, scholarships, blood donation, road maintenance 2. The community can sell their FFB to the factory 3. Job vacancy to the local community 4. There is a Women’s Commission and this commission has a positive impact to the women workers, such as awareness about sexual violence. The women worker can be sure that no sexual violence will occur. Suggestions received: 1. CSR assistance to communities should be more open, fair, and based on suggestions from the community. 2. The distribution of CSR should be better. 3. The company should use the local contractor rather than the outsider 4. Associated with obtaining RSPO certification by the company, the company should purchase their FFB at a higher price. 5. For the future, the company can provide grazing land. There should be clear rules on livestock grazing and the company should facilitate for grass planting Complaints received: 1. There was an FFB theft case last year involved children and the company brought this case to the police without discussing it first with the community. 2. The company contructed a 4 meter wide thrench to deter FFB theft which caused some animals fell in the trench Conclusion of the consultation: The participants agreed PT Tapian Nadenggan to continue the RSPO certification. Company response and proposed action to be taken: PT Tapian Nadenggan will consider all suggestions and this will be discussed during next stakeholder meeting. Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 50/ 57 PT Tapian Nadenggan- July 14-15, 2014 AttendanceList of Public Consultation Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 51/ 57 PT Tapian Nadenggan- July 14-15, 2014 5. RSPO P& C Group Certification (Not Applicable) 6. RSPO Supply Chain Certification The palm mill mentioned in the scope of the audit was audited against the requirements of the following: RSPO Supply Chain Certification Systems. November 2011. RSPO Supply Chain Certification Standard. November 2011. Supply chain model for which the mill applies: Segregation Certification for CPO mills is necessary to verify the volumes of certified and uncertified FFB entering the mill, the implementation of any processing controls (for example, if segregation is used), and volume sales of RSPO certified producers. A mill may be taking delivery of FFB from uncertified growers, in addition to those from its own certified land base. If a mill processes certified and uncertified FFB without segregating the material then only Mass Balance is applicable. Mass Balance Certification for CPO mills is necessary to verify the volumes of certified and uncertified FFB entering the mill and volume sales of RSPO certified producers. A mill may be taking delivery of FFB from uncertified growers, in addition to those from its own certified land base. In that scenario, the mill can claim only the volume of oil palm products produced from processing of the certified FFB as MB. 6.1 Findings by criteria Criterion Compliance Comments 1 Documented procedures 1.1 The facility shall have written procedures and/or work instructions to ensure the implementation of all the elements specified in these requirements. This shall include at minimum the following: a) Complete and up to date procedures covering the implementation of all the elements in these requirements Yes The SOP PTTN-LPYM/SOP/01, Rev.00, dated 20 June 2013 Identifikasi dan Mampu Telusur (Identification and Traceability) is available on site. These procedures are supported by PPTN computerized SAP (Systems Application Programming) system which provides the inputting FFB received and processed quantity CPO and PK Production. This system will process both FFB from own estate as well as from outgrowers b) The name of the person having overall responsibility for and authority over the implementation of these requirements and compliance with all applicable requirements. This person shall be able to demonstrate awareness of the facilities procedures for the implementation of this standard. Yes The Mill Manager, Mr. Siswo Wardono, was appointed to be a person who is responsible over Supply Chain requirements implementation.He is responsible to monitor, to control and to record the incoming FFB until dispatched CPO. Krani Ior system officer is one who helps the mill manager, responsible to input all the data into the computerized system. 1.2 The facility shall have documented procedures for receiving and processing certified and non-certified FFBs. Yes Procedure for receiving and processing certified and non-certified FFBs is the same as SOP PTTN-LPYM/SOP/01, Rev.00, dated 20 June 2013, Identifikasi dan Mampu Telusur (Identification and Traceability). The weigh bridge officer is responsible for receiving of FFB from estates and outgrowers at the mill. Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 52/ 57 PT Tapian Nadenggan- July 14-15, 2014 Criterion Compliance Comments 2.1 The facility shall verify and document the volumes of certified and non-certified FFBs received. Yes The mill will receive both certified and non-certified FFBs using the weigh bridge weight. The operator will input the data into the computerized SAP system, and the data will be automatically saved. The system was designed for calculating the volumes of certified and non-certified FFBs received and processed, and CPO and/or PK despached to the buyer. By using this system the number of FFBs received as well as CPO and/or PK was automatically calculated in real time. 2.2 The facility shall inform the CB immediately if there is a projected overproduction. Yes 2.3 For facilities that are required to announce and confirm trades in the RSPO IT system (all facilities up to the final refinery and excl. traders) this shall include making Shipping Announcements and Shipping Confirmations in the RSPO IT system on the level of each shipment. Yes According to the SOP PTTN-LPYM/SOP/01, Rev.00, dated 20 June 2013, Identifikasi dan Mampu Telusur (Identification and Traceability) the Mill Manager will announce and confirm each certified product transaction through Shipping Announcements and Shipping Confirmations in the RSPO e-trace system. 3.1 The facility shall maintain accurate, complete, up-todate and accessible records and reports covering all aspects of these requirements. Yes As per SOP PTTN-LPYM/SOP/01, Rev.00, dated 20 June 2013, Identifikasi dan Mampu Telusur (Identification and Traceability) the records are maintained by the weighbridge officer daily, monthly, as well as quarterly (3 monthly). All production data are recorded in the SAP system. 3.2. Retention times for all records and reports shall be at least five (5) years. Yes As per SOP PTTN-PLYEM/PSM/23 regarding File RecordKeeping Guidance, the records will be kept for 10 years. 3.3 Supply chain actors who take legal ownership of and physically handle RSPO certified sustainable oil palm products and who are part of the supply chain of RSPO certified sustainable oil palm products before and up to the (final) refinery need to register their transaction in the RSPO IT system upon the moment of physical shipment. Actors who must register include mills and refineries. Actors who must not register include traders and all operators after the final refinery. Yes According to the SOP PTTN-LPYM/SOP/01, Rev.00, dated 20 June 2013, Identifikasi dan Mampu Telusur (Identification and Traceability) Mill Manager will announce and confirm each certified product transaction through Shipping Announcements and Shipping Confirmations in the RSPO e-trace system. Specific for Segregation N/A N/A 2 Purchasing and goods in PPTN has a mechanism to inform the CB about realization of production every beginning of the year. The information contains the real production versus projected production of the year before. The Mill Manager will be the responsible person to communicate this information to the CB. Once there is a projected overproduction the mill manager will inform the CB immediately via email to related CB’s contact person with carbon copied (cc.) to related auditor(s) and CB System Certification Manager. The projected overproduction notification will be attached with the evidence needed to prove the ability of PTTN to achieve an overproduction.This is stated in the SOP PTTN-LPYM/SOP/01, Rev.00, dated 20 June 2013, Identifikasi dan Mampu Telusur (Identification and Traceability). 3 Record keeping 3.4 The facility shall record and balance all receipts of RSPO certified FFB and deliveries of RSPO certified CPO, PKO and palm kernel meal on a three-monthly basis. 3.5. The following trade names should be used and specified in relevant documents, e.g. purchase and sales contracts, e.g. *product name*/SG or Segregated. The supply chain model used should be clearly indicated. Int rspo pc cld clr asa sum e - v02–28/05/2014 PPT apply the i. Mass Balance Supply Chain Scheme N/A N/A PPT apply ii. the Mass Balance Supply Chain Scheme p. 53/ 57 PT Tapian Nadenggan- July 14-15, 2014 Criterion Compliance Specific for Mass Balance Yes 3.6 a) The facility shall record and balance all receipts of RSPO certified FFB and deliveries of RSPO certified CPO, PKO and palm kernel meal on a three-monthly basis. b) All volumes of palm oil and palm kernel oil that are delivered are deducted from the material accounting system according to conversion ratios stated by RSPO. Comments As per SOP PTTN-PLYEM/PSM/23 regarding File Record Keeping Guidance, all Supply Chain Data is systematically kept by using working instruction SOC/DP/9.09-03, and the auditor noted that the threemonthly basis data can be easily shown. Krani or System Officer of Tapian Nadenggan as person in charge to maintain data, will save it as excel file, compile the data on a three-monthly basis. N/A N/A since there is no any transaction yet regarding Mass Balance Supply Chain 3.7. The following trade names should be used and specified in relevant documents, e.g. purchase and sales contracts, e.g. *product name*/MB or Mass Balance. The supply chain model used should be clearly indicated. Yes The blank format of sales contract or purchase order of certified product has been prepared. The label of *CPO/MB* and/or *PK/MB* were prepared in the blank format. Actual implementation could be verified if any transaction had been made. Will be verified in the next surveillance audit. 3.8. In cases where a mill outsources activities to an independent palm kernel crush, the crush still falls under the responsibility of the mill and does not need to be separately certified. The mill has to ensure that the crush is covered through a signed and enforceable agreement. N/A N/A since there is no mechanism available to outsources any mill activities to an independent one. Yes Eventhough there were no transactions of the CPO/PK certified product, the facility has prepared the template of invoice. The invoice format describes: c) The facility can only deliver Mass Balance sales from a positive stock. However, a facility is allowed to sell short. 4 Sales and good out 4.1. The facility shall ensure that all sales invoices issued for RSPO certified products delivered include the following information: a. Name and address of the buyer, a) The name and address of the buyer; b. The date on which the invoice was issued b) The date on which the invoice was issued; c. A description of the product, including the applicable supply chain model iii. (Mass Balance) c) A description of the product, including the applicable supply chain model (Segregated or Mass Balance) d. The quantity of the products delivered e. Reference to related transport documentation such as vehicles number, delivery order, contract/agreement letter, CPO quality test result. d) The quantity of the products delivered; e) Reference to related transport documentation. The auditor has checked the format of sales invoices issued for CSPO product to a specific buyer and found that all requirements above are compliance. 5. Processing (only for segregation) 5.1.The facility shall assure and verify through clear procedures and record keeping that the RSPO certified palm oil is kept segregated from non certified material including during transport and storage and be able to demonstrate that is has taken all reasonable measures to ensure that contamination is avoided. The objective is for 100 % segregated material to be reached. The systems should guarantee the minimum standard of 95 % segregated physical material*; up to 5 % contamination is allowed. (*The background of guaranteeing the minimum standard of 95% segregated physical material is due to physical intermixing of two product flows (certified and conventional oil) in processing, which is technically unavoidable. ) Int rspo pc cld clr asa sum e - v02–28/05/2014 N/A for Mass Balance N/A p. 54/ 57 PT Tapian Nadenggan- July 14-15, 2014 Criterion Compliance Comments Yes Procedure for training is incorporated in 5.2. The facility shall provide documented proof that the RSPO certified palm oil can be traced back to only certified segregated material. 5.3. In cases where a mill outsources activities to an independent palm kernel crush, the crush still falls under the responsibility of the mill and does not need to be separately certified. The mill has to ensure that: The crush operator conforms to these requirements for segregation The crush is covered through a signed and enforceable agreement 6 Training 6.1.The facility shall provide the training for all staff as required to implement the requirements of the Supply Chain Certification Systems SOP/SPO/SMART/LH/10Prosedur Pengembangan Karyawanand PTTN-LPYM/PSM/17 Prosedur Pengembangan Kompetensi SDM (Employee Training Procedure). Training regarding supply chain was conducted on April 2013 to all POM staffs and workers, such as weigh bridge operator, Krani I ( administration clerk), sales and also involved the contractor. The training included the socialization of the new procedure for Mass Balance Supply Chain Scheme as per SOP PTTN-LPYM/SOP/01, Rev.00, dated 20 June 2013, Identifikasi dan Mampu Telusur(Identification and Traceability) and the training record was kept well. 7 Claims 7.1. The facility shall only make claims regarding the use of or support of RSPO certified palm oil that are in compliance with the RSPO Rules for Communication and Claims. Yes A procedure/mechanism of claim as per RSPO Rules for communication and claims are stated in the procedure of supply chain SOPPTTN-LPYM/SOP/01, Rev.00, dated 20 June 2013, Identifikasi dan Mampu Telusur (Identification and Traceability). It was mentioned that the Sustainability Manager only makes claims regarding the use of or support of RSPO certified palm oil that are in compliance with the RSPO Rules for Communication and Claims. a) keep a record of all complaints made known to the facility Yes relating to a product’s compliance with requirements of the RSPO SCCS and make these records available to the certification body when requested Through the SOP PTTN-LPYM/SOP/01, Rev.00, dated 20 June 2013, Identifikasi dan Mampu;Telusur (Identification and Traceability), it was clearly mentioned that the facility will keep a record of all complaints relating to a product’s compliance with requirements of the RSPO SCCS and make these records available to the certification body. The facility will take appropriate action as well with respect to such complaints and any deficiencies found in products or services that affect compliance with the requirements for certification b) take appropriate action with respect to such complaints Yes and any deficiencies found in products or services that affect compliance with the requirements for certification; According to this procedure, the facility will take appropriate action as well with respect to such complaints and any deficiencies found in products or services that affect compliance with the requirements for certification c) document the actions taken. Since so far there is no complaint from the customer or related party yet, no document for action taken available 8 Complaints 8.1 The facility shall: Int rspo pc cld clr asa sum e - v02–28/05/2014 Yes p. 55/ 57 PT Tapian Nadenggan- July 14-15, 2014 6.2 Noteworthy positive components and identified non conformances 6.2.1 Details of noteworthy positive components 1. The strong management commitment and the system implementation is good 2. All documents and records can be easily verified 3. Mass Balance Supply Chain System was easily traceable 6.2.2 Detail of non conformity AUDIT OUTCOME During this audit 7. 0 Non-Conformities MAJOR Certified organisation’s acknowledgement of internal responsibility 7.1 Date of next surveillance visit The next surveillance audit is scheduled within 9-12 months from certification date. 7.2 Date of closing non-conformities All major NCs closed by Lead Auditor and Auditor, on 05.08.2014 All minor NCs to be closed by Next surveillance assessment 7.3 Formal sign-off of assessment findings Name of Client: PT Tapian Nadenggan Client number/RSPO membership: 1-0019-05-000-00 Certificate number: 70603 Certification Decision Date: 13.02.2015 Issued by TÜV Nord Integra Address Statiestraat 164, 2600 Berchem, Antwerp, Belgium Telephone +32 3 287 37 60 Fax +32 3 287 37 61 Email info@tuv-nord-integra.com Website www.tuv-nord-integra.com Scope CPO Manufacturing Name of Mill: Langga Payung Mill Scope (Summary of suppliers of FFB) 181,695 MT As budgeted in 2014 Annual certified volume CPO (as budgeted in 2014) Int rspo pc cld clr asa sum e - v02–28/05/2014 40,881 MT p. 56/ 57 PT Tapian Nadenggan- July 14-15, 2014 Annual certified volume PK (as budgeted in 2014) 10,901 MT Annual volume certification): - FFB Type of certification: Certifier (contact person) (in case of group Single site: Yes /No Group Certification: Yes/No Gerrit De Weerdt Signature: Int rspo pc cld clr asa sum e - v02–28/05/2014 p. 57/ 57
