RSPO Annual Communication of Progress

Transcription

1 RSPO Annual Communication of Progress 1. Profile Guidance: The following information, notably the operational structure, will help report users to adequately understand (and respond to) the context of your report. Give a brief description of operating companies and locations, subsidiaries, joint ventures, most important products and/or brands, estimated palm oil production or trade volume. This will only need to be supplied once, unless profile information has changed during the reporting period (e.g. through mergers or acquisitions). Name of the organisation: Membership type (tick one only): Ordinary KULIM (MALAYSIA) BERHAD Affiliate Membership category (tick one only): Oil palm growers Palm oil processors and traders Consumer goods manufacturers Retailers Banks and investors Environmental/nature conservation organisations(ngos) Operational structure of the organisation: Social/development organisations (NGOs) Kulim (Malaysia) Berhad founded in 1933, starting humbly with the incorporation of Kulim Rubber Plantation LTD. (KRPL) in United Kingdom on 4 July Began its operation in 1947 with a 190 hectare rubber plantation in the state of Johor. Kulim (Malaysia) Berhad is a Malaysia-Based PLC focussing on four (4) core business operations that is Oil palm plantations, Oleochemicals, Food and Restaurants and Intrapreneur ventures. Plantations and Support Operations Our operations covering unique geographical footprint of ha in Malaysia, ha in Papua New Guinea (PNG) and ha of Solomon Islands (SI). Our Malaysian operations are managed by the Group s 100% subsidiary, EPA Management Sdn Bhd (EPAM) with corporate office in Ulu Tiram. Oleochemicals 1

2 The Group s involvement in oleochemicals began in 1994 through a 91.38% subsidiary, Natural Oleochemicals Sdn Bhd ( NatOleo ), a company established in 1991, strategically located in one of the important palm oil hub of the country Pasir Gudang, Johor. Foods and Restaurants In Foods and Restaurants, our 61% subsidiary, QSR Brands Berhad ( QSR ) is currently the leading, fully integrated quick service restaurants enterprise in Malaysia, Singapore, Brunei and Cambodia. Intrepreneur Ventures Kulim began its intrapreneurship initiative in Kulim disposed of, via EPA, a 10% equity interest in Edaran Badang Sdn Bhd, a company involved in trading agricultural machineries, to an employee. In 2008 Our IV division is spearheaded by our 77% subsidiary, Sindora Berhad ( Sindora ) and complemented by Kulim s own intrapreneur companies. The Plantation division recorded a total FFB and CPO production of 1.46 million tonnes and 431 thousands tonnes in 2008, a modest increase of 2% and 11% respectively against The increase was contributed by both the Malaysian and overseas operations, with the former inclusive of the first time contribution from Sindora s plantations. Proportionately, Malaysian estates produced 41% of total Group FFB (2007: 37%); PNG estates produced 52% (2007: 53%) of total Group FFB whilst SI estates contributed 7% of total Group FFB versus 5% in Group Sustainability Commitment The Group s sustainability programmes had thus been initially driven top-down upon obtaining the official approval, encouragement and pledge of support from the Group s Board of Directors and top management. In 2007, Kulim established a Sustainable Palm Oil ( SPO ) team and was given a departmental status, headed by the Group s Director of Sustainability. The 2

3 operating units sustainability activities are coordinated by the team along with the site specific manager whom reports to respective Regional Coordinator who reports the progress to Plantation Operations Director. The sustainability has its own agenda discussion in the Company Management Council Meeting. Responsible Contact(s) Primary contact for questions, feedback: Name: Salasah Elias Senior representative, authorising commitments: Person submitting progress report: Financial contact for membership fee: Address: Kulim (Malaysia) Berhad, c/o Ulu Tiram Estate, Ulu Tiram, K.B 705, Johor Bahru, Johor Telephone: / Ahamad Mohamad, Managing Director, Kulim (Malaysia) Berhad SALASAH ELIAS SALASAH ELIAS Reporting Period: Sept 2009 Aug 2010 Date of Report: August 2010 Guidance: The standard reporting period is 12 months or less. The date of submitting the report should not be longer than 3 months after the end of the reporting period. 2. Details of Progress A. Analysis and Strategy for Sustainable Palm Oil 1. High-level strategic view of the organisation's relation to sustainable palm oil and related longer term objective. Our sustainability has become an integral part of our business, within the plantation division, the 8 Principles and 39 Criteria of RSPO has been our overall management framework applied over the past years. 3

4 Our sustainability agenda aims at developing and building sustainable palm oil businesses that are premised on trust and efficiency as well as addressing longer term challenges that the industry is facing. We affirmed that this shall be a continuing commitment. As the first Malaysian palm oil producer to achieve certification of 100% of the estates and mills, we have demonstrated our on-going commitment to meet the needs of consistently sustainable operating model. Our aim is to create long term value for our customers, investors and society as a whole. We established in 2009, a Sustainability and Quality Council in order to further embed sustainability within our business. The Council is responsible for developing strategies and action plans for sustainability engagement. It works closely with various departments in developing strategies and managing stakeholders relations. 2. Time bound plan with milestones/targets. Kulim as managing agent for JCorp plantation launched the RSPO Certification program for Johor Corporation Plantations in February 2009 with a Briefing and Awareness session held on 25 February Kulim Plantations successfully completed the 1 st Surveillance Audit from January 2010 with 2 (two) minor Non-Conformances. Correction Action Plan (CAP) forwarded to BSI on 3 February The Smallholder Certification Program start-off in February 2010, the program is a collaboration of MPOB/Kulim and started off with Sedenak Palm oil Mill and Sindora Palm Oil Mill, it sees 2013 as the completion target date. Sustainability Report 2 for completed and circulated in June 2010 Sustainability Report; it was supported with 3 rd party Assurance reporting by Bureau Veritas. In progress with HCV improvement plan All estates are to identify and demarcate their Buffer zone area with white & blue peg stand. Buffer zone mapping is required to be updated twice yearly. Engagement with Wildlife Conservation Society continues with Human-Elephant Conflict (HEC) evaluation at recently acquired Ladang Sg Tawing and Birds & bet Survey at 3 identified locations.. 3. Targets for the next reporting period. Establish an Integrate management of the existing ISO certification program and RSPO management system targeting at combined internal auditing program for both. Commence combined internal auditing to all operating units. Progress with HCV improvement plan and long term management plans for Kulim. Progress with awareness and capacity building to smallholder under the planned extension program. Progress with existing NGOs engagement i.e Tree Pledge for WildAsia Natural Corridor 4

5 program, Kulim Wildlife Defender team and Human/Wildlife Conflict management with Wildlife Conservation Society (WCS) Program. Development and Embarkation of Kulim Wildlife Defender as registered NGOs. CDM Projects launched at all three mills. Inclusion of Ladang Sg. Tawing into RSPO certification under Tereh Complex. 4. Statement from the organisation's senior representative. As a social and environmentally responsible corporate citizen, Kulim (Malaysia) Berhad embraces the principles of sustainable development, has and will continue to work towards demonstrating sustainability throughout our operations. Kulim over the years has developed a strategy which focuses on delivering high quality, sustainable palm oil. We believed that People, Planet and Profit are intertwined, sustain each other and have to be represented in the group overall strategy. It governs on how we create sustainable value for our stakeholders to meet our goals and deliver sustainable value and returns that expected upon us. Guidance: Depending on the member organisation s profile or specific keywords provided by the organisation, it needs to consider and report how it will contribute to the RSPO mission. The objective translates into operational, time-bound deliverables on the longer term (3 to 5 years, with annual review) and the short term (one year, with annual updates). Justify any changes from last year. A sufficiently senior decision-maker confirms the commitments made. B. Progress made in producing, procuring and/or utilizing sustainable palm oil Guidance: Provide a report or update in relation to: the time-bound plan, applicable requirements ( citing relevant principles and criteria, Chain of Custody/Trade and Traceability rules, Communication and Claims rules, Code of Conduct where possible); and efforts in engaging key stakeholders (interest groups, business relations, etc). Information provided should be objective and verifiable, where possible quantified (volumes, hectarage, numbers of smallholders/labour/communities, etc). Empty Pesticides Containers Recycling Program in collaboration of Kulim, Malaysian Croplife and Public Health Association and Department of Agriculture (Malaysia). We are invited to sit in the State level Recycle Committee since Kulim through its subsidiary EPA Management Sdn Bhd assisted Johor Corporation owned plantations in achieving RSPO certification, program began in February The Pre-Audit was conducted by British Standards International Singapore Pte Ltd (BSI) from 6-15 October 2009 whilst Compliance Audit was conducted from 7 17 December 2009 by the same Auditor. Receiving two (2) major non- 5

6 conformances, JCORP is currently addressing the corrective action to these NCs and hopefully targeted at closing the NCs by September As part of our RSPO commitment, Kulim has set target to certify 100% of FFB to be certified latest by In 2009, Kulim collaborates with Malaysia Palm Oil Board (MPOB) to start-off the smallholder s certification program. MPOB through this program has identified 9 RSPO certified palm oil mills in Malaysia from which our two (2) of our certified mills i.e Sedenak and Sindora Palm oil mill were selected to join the program. The program intends to instil the GAP Good Agriculture Practices among the smallholders thus enable them to improve the quality of FFB produced hence improve their income. Fund for the program will be provided by MPOB through their RSPO fund. Kulim is assisting MPOB on the smallholder engagements and extension program by providing advisory and training to the smallholders. The 1 st smallholders engagements session for Sedenak Palm Oil Mill was conducted in February 2010 and for Sindora Palm Oil mill was conducted in Kluang. The program currently limited to 400 smallholders per palm oil mill and certification is targeted at the end of Kulim is proud to be the 1 st plantations in the world to initiate a comprehensive reporting on our sustainability activities. Our 1 st report was a winner of the ACCA Malaysia Sustainability Reporting Awars (MaSRA) 2009, Kulim was awarded as Winner for the Best First Time Reporter and Commendation for Reporting on Strategy and Governance. The 2 nd Sustainability Report 2009 was completed and circulated to all stakeholders in June 2010, the report been registered for Malaysian Sustainability Reporting Awards (MASRA) Our conservation strategies were supported by collaboration and engagements with the experts in the respective field and guided along by the High Conservation Value assessment report undertaken in We are a corporate member of Malaysian Nature Society, continued to be a partners to Wildlife Conservation Society and Wild Asia on their Natural Corridor Initiative (NCI). We are deepening our partnership with Wildlife Conservation Society for our jointly effort to protect and conserve the natural the habitat at area adjacent the Endau-Rompin National Park and Labis Forest Reserve. We have teamed up with WCS to establish the Kulim Wildlife Defenders (KWD) and Kulim Wildlife Defenders Junior (KWD J) programmes. The Company has been commissioned through the initiation of Kulim Wildlife Defender Patrol Unit which supports the WCS/Johor Wildlife Tiger conservation project along with few other projects on Human/Wildlife Conflict which already in a pipe line. We participated in all static and long range patrols conducted by the department on 29 November and 13, 19, 26 & 27 December 2009, and in April and May of Our Head of Security attended the Train the Trainer programme in Thailand aimed specially at wildlife protection followed by two (2) other personnel being trained in The programme has since been rolled out to managers, security guards and workers. On the other hand, the KWD and KWD J is intended to ensure the long term commitment of these initiatives. KWD J programmes includes outreach to young people and children in the areas affected. So far 691 children have joined the programme with Teachers for Tigers has been set up to increase the outreach alongside with other interesting activities such as nature photography, art & craft surrounding wildlife. The engagements with Wildlife Conservation Society (WCS) were also extended to the Human-Elephant Conflict assessment at Ladang Sg. Tawing and the recent Birds and Bats Survey which currently taking place at 3 selected locations. 6

7 Our Panel Aduan Wanita (PAW) was re-branded and now known as Women Onwards (WoW) is part of the larger strategy to reach out to all levels of employees. The WoW has a full support from the management and the activities are fully funded by the company. Awareness programs were extended to all operating units in order to reach to female community in the company and to make them aware of WOW functions and how WoW can be useful to them. This is the first step in getting the female community to realise that there is a channel for them to air any issues they might have and to highlight any changes they wish to institute. We have conducted few motivational programs for the ladies of the company. Kulim International Women s Day was celebrated on 13 March 2010 themed Memperkasa Hak-hak Wanita (Empowering Women) prior to a series of motivational and spiritual enhancement programs conducted at all complexes starting from June ending in October One key aim of the committee if to develop and equip the ladies with entrepreneurship skill, particularly among the women s employee by introducing to them skill trainings that can provide them with additional income for them as well as the household. 7

8 C. Challenges 1. Significant economic, social or environmental obstacles encountered in production, procurement and/or use of sustainable palm oil and efforts made to mitigate or resolve them. (2009) The program surprised us as to the scope and effort required to accomplish the overall implementation. As mentioned influencing and engaging the traders and smallholders to adopt RSPO is challenging and currently are working on ways to approach this matter. (2010) 2009 a year which Greenhouse Gas emissions took centre stage. At the Copenhagen summit, Malaysian Prime Minister made a commitment for reduction of 40% by 2020, within the industry reduction in GHG is a focal area to be addressed and this challenge us to be fully committed in playing our part in meeting the national and global reduction target. 2. Suggestions on how the RSPO can assist your organisation s sustainability performance. It is our hope to see the traceability process within the supply-chain would be improved and problems on the premium to be sorted out. The fact the premium paid is for the extra effort put in by the producer to ensure that the produce as RSPO, is to be appreciated. With the recent pressure on RSPO to comply with ever more stringent P&C and standards including EU Renewable Energy Directives, improvement and effort on this should benefit all RSPO members. 3. Suggestions on how your organisation can assist RSPO s overall progress. Our active representation in the roundtable of sustainable palm oil (RSPO) EB and MYNIWG and the adoption of the RSPO principles and Criteria denote our continue support to this cause. We have and will commit to made available of current representation to also assist the National interpretation Working group of any program undertaking (s). Guidance: RSPO encourages openness about problems encountered as a way to provide a balanced and credible picture of performance and to invite solutions or views from other stakeholders. 8