SUSTAINABILITY MANAGEMENT REVIEW MEETING (SMRM/01/2022)

VENUE: MEETING ROOM, BAYU ESTATE

DATE: 15/07/2022
TIME: 09.00 A.M TO 12.00 P.M
NO NAME ABBREVIATION DESIGNATION
1 UNANG ANAK BANKONG UB MANAGER
2 MUHAMMAD SARIFFUDDIN BIN MOKHTAR MSM ASSISTANT MANAGER
3 YEW KA HOW YKH ASSISTANT MANAGER
4 MOHAMMAD ABDUL RASID BIN MAT PANDI MAR AAO
5 RICHIE DATHOO ANAK NINGKAN RDN PROTÉGÉ
6 NUR FARAH SYAZWANI BINTI MELAWI NFS STORE CLERK
7 LUNGIE ANAK UMPOH LU CHECKROLL CLERK
8 DAGANG ANAK KONYING DK FIELD SUPERVISOR
9 EMPERA ANAK BUNSU EB FIELD SUPERVISOR
10 KENNEDY ANAK LEBON KL FIELD SUPERVISOR
11 MOHD ALIAS BIN ABDULLAH MAA FIELD SUPERVISOR
12 UNDAK ANAK SUNGGAN US FOREMEN
13 MISCHIAU ANAK LANSANG ML KOPERAL

NO ITEM REMARK PIC GUIDE

1.0 OPENING REMARK
1.1 Welcoming remark by the Chairman.

1.2 Meeting objectives are to: To state meeting objective to review

To review performance and implementation of overall sustainability management performance and implementation of
system i.e. RSPO & MSPO requirements. overall sustainability management
system i.e. RSPO & MSPO requirements
…
2.0 MATTERS ARISING FROM PREVIOUS MEETING
2.1 Previous management review meeting was done on 3.11.2021. Chairman updated Refer to previous meeting minutes -
that all 14 finding during internal audit was successfully closed. follow-up action from previous
All action plans were implemented and monitored by management. management review.
Members are to discuss and
acknowledge all action taken. Any non-
close issue shall be discussed further.
CHANGES IN REGULATIONS, STANDARDS, POLICIES & PROCEDURES IN RELATION TO SUSTAINABILITY MANAGEMENT
3.0
SYSTEM
3.1 Review on LORR To review OU’s Legal Register (LORR)
 When was LORR last updated
 LORR review last updated in July 2022 and done by management. and by who?
 New update(s): Minimum Wages Order 2022 which the minimum wages rate  List down all newly added
regulations
(RM1500) payable to an employee who works in a place of employment with
 Any additional resources/
effect from 1st May 2022 for an employer who employs five or more employees matters arising required
and who carries out a professional activity classified under the Malaysia
Standard Classification of Occupations (MASCO) as published officially by the
Ministry of Human Resources.
- Monthly: RM1500, Hourly: RM7.21, Daily: 6 days per week – RM57.69

3.2 Review on Sustainability Related Policies & Procedures To review on Sustainability related
SDP has released a new policy on 5 th May 2022 titled SDP Group Drug and Alcohol policies and procedures
Policy. The policy outlined company’s commitment on prohibition of any illegal  Any new/ updated policies &
substances and alcohol in our premises. The policy applies to all SDP employees, SOPs during period of review?
List down the respective SOPs
contractors, and visitors.
accordingly.
 Have the new / updated SOPs
SDP Group Health Safety and Environment Policy was issued on 5 th May 2022 being briefed to the relevant
 outlining company commitment to the implementation of HSE in our businesses. employees?
 Any challenges in
Various SOPs were released in 2022 e.g. Waste Management Procedure for implementation & resources?
Upstream Malaysia May 2022, Incident, Accident and Non Compliance  Any area for improvement?
Management Procedure 1st June 2022, Sustainable Supply Chain and Traceability
Procedure for Upstream Malaysia May 2022.

All employees have been briefed with the details of the above new Policy and
Procedures during Morning Musters.

3.3 Review on New Plantings/ Land Conversion/ Land Acquisition / Replanting (LRRP) To review plans on New Plantings/ Land
(if applicable) Conversion/ Land Acquisition /
 Replanting program for FY2022 with 174.47Ha. Replanting activity is expected Replanting (LRRP)
to complete by end of August 2022. Social Impact Assessment for affected  Review on past 6 months and
upcoming planning
stakeholder e.g. Employee was conducted on 6 th June 2022 by Assistant
 Resources required for
Manager Bayu estate. relevant assessments (SEIA,
 Next Replanting program is scheduled in FY 2024. etc.) & Departments involved
(land management, GSD, etc.)
No New Plantings/ Land Conversion/ Land Acquisition recorded in 2022 or planned
in 2023.

3.4 Review on any Plan for Changes in Mill’s Supply Chain Model / Crop Diversion / To review plans on supply chain model
OCP Suppliers (if applicable) changes, crop diversion or OCP suppliers
 Review on past 6 months and
Estate management was advised by Mill Management in May 2022 to use correct upcoming planning
 Resources required for any
MSPO certificate number MSPO 00123 and validity period. This is due to internal
relevant assessments (RSG,
audit NCR raised by group sustainability to Mill Management on supply chain and etc.) & departments involved
traceability. (Upstream, GSD, etc.)

4.0 REVIEW ON OPERATION PERFORMANCE & PRODUCT CONFORMITY

4.1 To review monthly crop production. To highlight OU’s overall performance
(budget vs actual to-date) i.e. overall
yield & OER recorded for the year.
Item YTD Actual FY2022 (7 YTD Budget FY2022 (7
Month) Month)
Yield Per hectare 9.62 12.93
Crop production 15641.64 mt 20637.12 mt
 Harvester Productivity 1.48 1.32

4.2 To review monthly cost for operation direct cost per crop production. To summarise issues in relation to OU’s
performance (e.g. estate on harvesting
Cost Item Remark period, mill on throughput, etc.)
YTD Actual FY YTD budget FY
2022 (7 Month) 2022 (7 Month)
Harvesting 75.15 63.84 - Payment on
(Cost/FFB) Overtime for
harvester.
- additional cost
due to assisting
badang and loose
fruit collection.
- working on 2
Sunday
harvesting for
every month.

Transport 49.67 43.53 - High cost due to

(Cost/FFB) major repair for 1
unit tractor
- 2 Sunday cost
for internal
transport.
- Increasing of
rate/mt for
Contract FFB
Transport due to
increasing of
diesel price
Manuring 162.70 96.55 Timing variance
(Cost/FFB) in application
from the program
Upkeep 299.40 388.02 Expenditure
(Cost/Mature Ha) below the budget
Road And Bridges 196.59 164.42 Expenditure
 (Cost/Mature Ha) overspent due to
preparation for
mechanization
area (Path
repair)

5.0 REVIEW ON MANAGEMENT PLANS

5.1 Meeting discussed and reviewed all management plans and their relevant actions’ To review all Management Plans &
status and plans for upcoming year’s as follows: Action Plans developed including but
not limited to;
5.1.1 Safety & Health Management Plan Review i. Safety & Health Management Plan
 Review all plans and activities
All activities e.g. Training, inspection, meeting, investigation, disposal, reporting, during period of review
etc. under ESH is managed under one plan.  Action plans status
 Develop new/ update plan for
following year
Starting May 2022 HIRARC review for all activities is conducted with the input from
staff and workers. Completed in June 2022.

70% of all planned program and training is completed. To perform Fire drill, First
Aid Training in August-September 2022.

5.1.2 Environmental Management Plan Review ii. Environmental Management

EMP details out the management of river reserve, IPM, CSA and PPP. Plan
o Chemical/ Pesticide Use
All monitoring, review and maintenance of the above is as per plan. Records are o IPM
o GHG Reduction Plan (e.g.
maintained at the main office e.g. Training record, Patrolling Record, EAI, EIE etc.
Renewable Energy, Diesel Use,
Electric Use, Biogas, Compost, Solar,
Signages and physical implementation of the above are closely monitored etc)
according to legal requirement and company SOP. o EAI/EIE
 Review all plans and activities
New chemicals are introduced in 2022 i.e. Supresate and Kenlon during period of review
All new chemicals are due to be assessed by CHRA assessor. Estate management  Action plans status
has communicated with RSQM on this matter. Assessment is expected to be  Develop new/ update plan for
completed in September 2022. following year

5.1.3 Waste Management Plan Review iii. Waste Management Plan

 Review all plans and activities
 All wastes listed as scheduled wastes are monitored in eSWIS system. Last disposal during period of review
was in November 2021. Approval for scheduled wastes storage extension was  Action plans status
obtained from DOE on 26th May 2022, valid until 31st December 2022.  Develop new/ update plan for
following year
Domestic wastes are disposed at internal landfill. In August 2022, RSQM has
distributed a new WPI monthly check list and sample of waste management plan.
Septic tank maintenance was last conducted in March 2022 for block G. Next
maintenance is scheduled in March 2023.

Industrial wastes i.e. scrap metal was last disposed in 2021. No plan to dispose in
2022.

5.1.4 Water Management Plan Review iv. Water Management Plan

WMP is divided into 3 plans i.e. action to reduce water usage, contingency plan Review all plans and activities
during water shortage, and management of waste water. during period of review
 Action plans status
Develop new/ update plan for following
Rainwater collection is planned to be implemented at workshop, store, workers For action MSM
year
quarters area, and nursery. The plan is to install large containers at the areas by
December 2022. To date, 43 units were installed at workers quarters and 2 units at
nursery. Pending for workshop and store.

Contingency plan for water shortage is to get water from other sources i.e. LAKU
and Damai Estate. No changes from previous year.

Water sump is constructed to manage wastes water from chemical mixing area.
Pump is installed to recycle wastes water.

5.1.5 HCV & Biodiversity Management Plan Review v. HCV & Biodiversity
HCV listed for Bayu Estate are river reserve, stream, and CSA. Management Plan
 Review all plans and activities
Signages and regular patrolling are practiced and recorded in file. No new HCV during period of review
 Action plans status
identified.
 Develop new/ update plan for
following year

5.1.6 Social Action & Management Plan Review vi. Social Action & Management
Social action plan covers the improvement plan for stakeholder e.g. infrastructure, Plan
living condition, grievances etc.  Review all plans and activities
during period of review
  Action plans status
In 2022, replanting impacts to stakeholders are not required due to the area of  Develop new/ update plan for
replanting within our estate area only. Not effected other nearest stakeholder. following year

6 units of workers’ housing is currently under construction, expected to complete

by December 2022. Awaiting confirmation from region office for next year’s plan.

CAPEX is approved for water tank and petrol storage at workers quarters for FY
2022. Awaiting PO from region.

Tiling at estate Surau for women prayers area is under construction. Expected to
complete in November 2022. Tiling for workers quarters at living room is
completed for 20 units as per plan. For next year, budget for 20 more units is
allocated.

6.0 RESULTS FROM SYSTEM AUDITS & ASSESSMENTS

6.1 INTERNAL RSPO & MSPO AUDIT

6.1.1 Internal RSPO & MSPO Audit was conducted on 27/05/2022 by Group Sustainability To summarise & analyse all NCs raised
Department. Please refer Appendix 1 on detailed NCR audit plan. & status of closure
Summary of NCs status and analysis is as below:

Type No of NCs Status (Closed/ Open)

Major 6 5/6 closed, 1/6 open

Minor 5 Closed
 OFI 2 Closed

Total No. of Reminders/Notes: 2

Area Total No. of NCs Percentage from Overall

(Major + Minor) NCs
Environment, Safety & 5 45%
Health
HR & Social 3 27%
Contractors 0 0

SOPs and Plans 2 18%

Supply Chain 0 0

Others 1 10%

6.2 EXTERNAL RSPO & MSPO AUDIT

6.2.1 Previous external RSPO & MSPO Audit was conducted 30/11/2021 (RSPO & MSPO To summarise & analyse all NCRs raised
P&C Audit - Recertification) & status of closure

Summary of NCs status raised at Bayu Estate and analysis is as below:  Any issues/NC recur from
previous year’s audit to be
highlighted.
RSPO
RSPO external audit finding in 2021 by SIRIM for SOU Rajawali: 1 major, 3 minor
MSPO external audit finding in 2021 by SIRIM for SOU Rajawali:

Type No of NCR Status

RSPO (Bayu Estate only)
Major 0 -
Minor 2 Closed
 OFI 0 -
MSPO (Bayu Estate only)
Major
Minor
OFI

RSPO

Recurring
from
Area NCR/Issues Status To-Date Previous
Year
(Yes/No)
Environment, PPE Usage Standardization of No
Safety & Health Workers were PPE checklists (daily)
observed not and reporting.
using PPE as per
SOPs.

HR & Social - - -
Contractors Salary payment Monthly pay slip No
for contractor checking by estate
workers is later management
than 7th every
month
SOPs and Plans - - -
Supply Chain - - -
Others - - -
 6.3 OTHER ASSESSMENTS
6.3.1 OU ILO verification is done on monthly basis. Cross SOU ILO verification is done on Review on other assessments conducted
a quarterly basis. during period of review e.g. ILO
assessments, RSPO verification audits,
contractor assessment, etc. (where
RSPO verification audit by RSPO appointed external auditors was conducted in June
applicable)
2022. No closing meeting held with estate management.
 To summarise all findings’ and
status of closure.
 To highlight any challenges &
concerns.

7.0 STAKEHOLDER FEEDBACK AND COMPLAINTS

7.1 Stakeholder Listing Review on Stakeholder List as at current
Stakeholder list remains as previous year. No changes. status.
 Addition or deletion to be
recorded
.
7.2 Issues from Stakeholder Meeting To summarise outcomes from the last
Last stakeholder meeting was conducted on 04th November 2021 at Rajawali Stakeholder Engagement Meeting
Community Hall. No complaint raised on Bayu Estate.

7.3 Complaints from Internal Stakeholders To summarise all complaints/

To date, complaints received through OPP : For action UB grievances from following sources:
- SUARAKAMI & ULULA
(Workers Helpline)
Total Status
- Oil Palm Pal (OPP)
Complaint Total Received Completed In Progress - Social Dialogues
received through 158 158 Nil - Gender Committee
OPP (Jan 22 – Jul
22)

To date, complaints received through Social Dialogue (SD) :

Total Status
Complaint Total Received Completed In Progress
received through 15 11 4
SD (Jan 22 – Jul
 22)

To date, complaints received through Gender Committee (GC):

Total Status
Complaint Total Received Completed In Progress
received through - - -
GC (Jan 22 – Jul
22)

7.4 Complaints from External Stakeholders To summarise complaints received from

No issues raised by stakeholders. external stakeholders’ (sources include
Union Meetings, customers’ complaints
on product qualities, stakeholder
meeting minutes, RSPO Complaints,
etc.)

8.0 RESOURCES FOR SYSTEM IMPLEMENTATION

8.1 Manpower Status Review on total manpower required
 Total of manpower to date
FOREIGN WORKERS-CHECKROLL MALAYSIAN-CHECKROLL  Breakdown of employees

GENE GENE
FIELD FIELD TOTAL
HARVES IMMAT RAL HARVES IMMAT RAL
WOR WOR
TER URE WORK TER URE WORK
KER KER
ER ER
54 11 22 48 0 7 14 17 173

Harvester Requirement : 70
Current Available Harvester : 53
Shortage of Harvester : 17

8.2 Training For action MSM Review on training evaluation, need and
 70% of all planned programs and training is completed. To perform Fire drill, First plan
Aid Training in August-September 2022.  To review current status of
training plan against actual,
th th
Training for driver is planned to be conducted on 17 to 18 August 2022 titled evaluate effectiveness and
Offensive and Defensive driving course. competency level, and decide
next plan for action. Check
Trainings e.g. induction, safety, policy, SOP etc. are to be conducted (as and when how far the team to complete
required). the planned training
 To review the need for
All trainings are to be evaluated based on the standard format distributed by RSQM developing the competency of
starting from May 2022. current/ new workforce –
suitability of training matrix

8.3 System & Infrastructure Review on system and infrastructure

6 units of workers’ housing is currently under construction, expected to complete e.g.
by December 2022. Awaiting confirmation from region office for next year’s plan.  Any upgrade/ repair of
facilities required/ done
during period of review?
WPI is conducted on a monthly basis to ensure all infrastructure are well
 To review the maintenance of
maintained and in safe condition. Weekly housing inspection is done by PIOA and infrastructure and work
recorded accordingly. environment related to
buildings, equipment’s and
services in order to achieve
product conformities.

9.0 CONTINUAL IMPROVEMENT PLAN

9.1 Mizou Terrance Fertilizer Applicator is introduced in May 2022 to mechanize To summarize recommendations
fertilizer application in the estate. discussed during the meeting
 To discuss areas which need
All action plans discussed are the continual improvement plan by the company. improvement and to record
into organization’s continual
improvement plan
 To review current status of
continual improvement plan
and update where necessary

10.0 CONCLUSION/ MEETING OUTPUTS

10.1 In summary, below are the decisions and actions required:
Improvement of management system
and effectiveness
1. Mizou Terrance Fertilizer
Applicator has been in
operationalised in May 2022
to mechanize fertilizer
application in the estate.
To conclude meetings and highlight
outputs of the meeting :
Resources needed for effective 1. Improvement required for
system effectiveness
implementation of the system
2. Resources required
1. Construction of workers
housing to complete by
December 2022
2. Training for drivers (Offensive
& Defensive) planned in
August 2022

11.0 CLOSING REMARK

11.1 Next meeting to be scheduled in August 2023

Prepared by: Approved by:

……………………………. …………………………….
(MUHAMMAD SARIFFUDDIN MOKHTAR) (UNANG ANAK BANKONG)