This Training Material is Belong to OSH ISIS Integrated Solution

MSPO Lead Auditor Training Module

MSPO SIA Basic Training Module

REFERENCE FROM SA 8000 STANDARD

MSPO Principle and Criteria

1). CHILD LABOUR

Since 1919, the year of its establishment, the International Labour Organization (ILO) has adopted more than ten conventions addressing problems related to child labour, among which the Minimum Age Convention 138 (1973) and the Worst Forms of Child Labour Convention 182 (1999) are the two cornerstones. In addition to the major international and national initiatives focusing on the prevention and elimination of child labour, there have been an increasing number of initiatives in the private sector. For instance, almost all the major codes of conduct developed since the early 1990s by multinational corporations contain an element stipulating a prohibition against child labour. Moreover, most of the existing external labour standards have clear policies against child labour.

Convention 138, adopted in 1973, consolidated the principles of previous conventions dating from the founding of the ILO that addressed child labour and remains a fundamental instrument on child labour. It applies to all sectors of economic activity and all types of work. The key requirement of Convention 138 is that national governments pursue a national policy designed to ensure the effective abolition of child labour and to increase progressively the minimum age for admission to employment to a level that enables “the fullest physical and mental development of young persons.”
Though Convention 138 (with Recommendation 146) allows some developing countries to set a minimum age for general employment at 14 and a minimum age for light work at 12, the goal is to urge member states to progressively increase the minimum age for general employment to 16.
Another important requirement is that a higher minimum age of at least 18 must be established for hazardous work, which is defined as work that by its nature or the circumstances in which it is carried out is likely to jeopardize the health, safety or morals of young persons. The Minimum Age (Non-Industrial Employment) Convention 33 (1932) also provides some specific guidelines related to hours of work for young workers and light work for child labour.

In June 1999, the ILO unanimously adopted its most recent instruments on child labour Convention 182 against the Worst Forms of Child Labour, and Recommendation 190. It is recognized that the abolition of the full range of child labour is a gradual process, and the ILO therefore decided to make the eradication of the worst forms of child labour a matter of top urgency.

Convention 182 allows for determination at the national level of what constitutes work likely to harm the health, safety or morals of a child. The Convention stipulates that the national authority should, after consultation with the employers and workers concerned, make such determinations. It also provides that consideration be given to Article 3 of Recommendation 190, as it provides further guidance on which types of work are likely to be harmful to children. As noted in Recommendation 190, particular attention should be given to:

1. Work that exposes children to physical, psychological or sexual abuse
2. Work underground, underwater, at dangerous heights or in confined spaces
3. Work with dangerous machinery, equipment and tools, or work which involves the manual handling or transport of heavy loads
4. Work in an unhealthy environment that may, for example, expose children to hazardous substances, agents or processes, or to temperatures, noise levels or vibrations damaging to their health
5. Work under particularly difficult conditions such as work for long hours or during the night, or work where the child is unreasonably confined to the premises of the organisation

As of January 2016, 168 countries had ratified Convention 138 and 180 countries had ratified Convention 182. This indicates national governments’ acceptance of and commitment to the eradication of child labour, particularly in its worst forms. By ratifying ILO conventions, national governments are generally obliged to:

1. Establish and/or revise national legislation to reflect the ILO principles
2. Establish appropriate specific regulations governing work/employment conditions
3. Establish appropriate penalties or other sanctions to ensure the effective enforcement of its provisions
Moreover, Convention 138 and Convention 182 are fundamental ILO conventions. According to the 1998 Declaration on Fundamental Principles and Rights at Work, which is also endorsed by the UN Guiding Principles, even the member States that have not yet ratified these Conventions should respect, promote and realize the principles. Thus, all Member States are committed to respecting the principle of abolishing child labour.

2). FORCED OR COMPULSORY LABOUR

Forced labour or compulsory labour is universally condemned, as evidenced by its prohibition in numerous international human rights instruments. The Universal Declaration of Human Rights, adopted in 1948, first proclaimed that “no-one shall be held in slavery or servitude” and the ILO has numerous conventions regarding forced or compulsory labour, including the following:

1. The Forced Labour Convention 29 (1930), which provides that national governments should take all necessary measures to prevent and suppress the use of forced or compulsory labour.
2. The Protection of Wage Convention 95 (1949), which provides that wages shall be paid regularly and as clarified by Convention 105, prohibits methods of payment which deprive workers of a genuine possibility of terminating their employment.
3. The Abolition of Forced Labour Convention 105 (1957), which requires national governments to take all necessary measures to prevent and suppress the use of forced or compulsory labour:
   1. as a means of political coercion or education or as a punishment for holding or expressing political views or views ideologically opposed to the established political, social or economic system
   2. as a method of mobilising and using labour for purposes of economic development
   3. as a means of labour discipline
   4. as a punishment for having participated in strikes
   5. as a means of racial, social, national or religious discrimination
4. The Private Employment Agencies Convention 181 (1997), which protects workers recruited by private employment agencies and stipulates that such agencies shall not “charge directly or indirectly, in whole or in part, any fees or costs to workers.”

The vast majority of ILO member states have ratified the two key conventions combating forced labour. As of January 2016, 175 countries ratified Convention 105, and 178 countries ratified Convention 29. These countries agreed to create new legislation or revise existing legislation to reflect the intent of ILO conventions and show governments’ commitment to eliminating forced labour in its numerous forms. Moreover, all member States are committed to respecting the forced labour principles by virtue of the 1998 Declaration on Fundamental Principles and Rights at Work, which is also endorsed by the UN Guiding Principles.

3). HEALTH AND SAFETY

Approximately 70 ILO Conventions and Recommendations address safety and health issues.7 The following are some of the ILO standards that are relevant to SA8000 implementation and auditing.

1. The Occupational Safety and Health Convention 155 (1981) and its accompanying Recommendation 164 outline the requirements for national OSH policies and the progressive application of preventive measures. The Convention and Recommendation also establish employers’ responsibility to provide a safe and healthy work environment.
2. The Occupational Health Services Convention 161 (1985) and its accompanying Recommendation 171 call for government establishment of occupational health services responsible for advising employers, workers and their representatives on maintaining a safe and healthy working environment through preventive measures. The Convention and Recommendation emphasize the importance of clear responsibilities within an organisation, best use of organisation resources, and cooperation between employers and workers.
3. The Convention Concerning Safety in the Use of Chemicals at Work 170 (1990) and its accompanying Recommendation 177 aim to protect workers against the health and safety impacts of chemical use in the workplace. The standard emphasizes the roles and responsibilities of authorities, suppliers and employers, as well as the duties and rights of workers in the safe handling, storage and use of chemicals.
4. The Prevention of Major Industrial Accidents Convention 174 (1993) and its accompanying Recommendation 181 seek to protect workers, the public and the environment from major industrial accidents. The Convention and Recommendation focus on the prevention and minimization of harm caused by major accidents involving hazardous substances.
5. A number of ILO standards deal with specific toxins and agents, such as the Asbestos Convention 162 (1986) and its accompanying Recommendation 172; White Lead (Painting) Convention 13 (1921); Radiation Protection Convention 115 (1960) and Recommendation 114; and Benzene Convention 136 (1971) and Recommendation 144 (1971).
6. Other ILO standards deal with specific risks or groups of people such as Occupational Cancer Convention 139 (1974) and Recommendation 147; Guarding of Machinery Convention 119 (1963) and Recommendation 118; Maximum Weight Convention 127 (1967) and Recommendation 128; Maternity Protection Convention (Revised) 183 (2000) and Recommendation 191; Medical Examination of Young Persons (Industry) Convention 77 (1946).

In addition to the ILO Conventions, all relevant regional, national, provincial and municipal legislation and regulations must be recognised and satisfied. Many authorities (regional, national, state and local) have departments to promulgate and oversee health and safety matters. Lastly, industry or sector standards, codes-of-conduct and customer-specific requirements must also be effectively addressed whenever they are applicable to a particular organisation. Regulations, standards and guidelines published by interested parties typically specify detailed requirements to be met, but can also provide useful guidance and resources to assist in meeting those requirements.

4). FREEDOM OF ASSOCIATION AND THE RIGHT TO COLLECTIVE BARGAINING

In 1944, the Constitution of the ILO was supplemented by the inclusion of the Declaration of Philadelphia concerning the aims and purposes of the ILO, which reaffirmed "the fundamental principles on which the Organisation is based and, in particular, that: freedom of expression and of association are essential to sustained progress.” In 1948 and 1949, respectively, the ILO adopted Convention 87 on Freedom of Association and Protection of the Right to Organize and Convention 98 on the Right to Organize and Collective Bargaining, which together constitute the basic international instruments governing freedom of association and are two of the eight fundamental ILO conventions. Therefore, all member States are committed to respecting the principle of freedom of association and collective bargaining through the 1998 Declaration on Fundamental Principles and Rights at Work, which is also endorsed by the UN Guiding Principles.

These rights are also enshrined in other human rights instruments, including the Universal Declaration of Human Rights (1948), the International Covenant on Economic, Social and Cultural Rights (1966) and International Covenant on Civil and Political Rights (1966).

The vast majority of ILO member states have ratified Conventions 87 and 98, demonstrating increasing recognition of freedom of association and collective bargaining as the lawful rights of workers. However, even within many ratifying states, there still exist direct and indirect restrictions on the exercise of these rights in practice.

Convention 87 states that national governments are to ensure the following key provisions for freedom of association:

1. Article 2: Workers and employers have the right to establish and join organisations of their own choosing without previous authorization.
2. Article 3.1: Workers and employers have the right to draw up their own rules, elect representatives in full freedom and organize their administration and activities and to formulate their own programmes.
3. Article 3.2 and 4: Public authorities must not interfere with any of these mentioned rights and cannot dissolve or suspend such organisations

Convention 98 on the Right to Organize and Collective Bargaining reiterates in Article 1 the protection of workers “against acts of anti-union discrimination in respect of their employment.” Thus, no employment can be made subject to the condition of not joining a union, nor can workers be dismissed or otherwise prejudiced against by reason of union activity. Article 2 prohibits interference with union activities, including the domination of such organisations by employers through financial or other means.

Supplements to these conventions were adopted in 1971 and 1981. The Workers’ Representatives Convention 135 further defines and protects the rights of workers’ representatives (Note: The worker representatives covered by this convention are NOT the same as the SA8000 worker representative. The SA8000 worker representatives do not have any role in collective bargaining or other union activities if they are not the union representatives as well.)

1. Article 1 protects workers’ representatives from unlawful dismissal based on their status or activities as a workers’ representative.
2. Article 2 affords workers’ representatives the means to be able to carry out their functions promptly and efficiently.
3. Article 3 defines workers’ representatives, depending on national law, as either:
   1. Trade union representatives designated or elected by trade unions or by members of such unions; or
   2. Freely elected workers’ representatives
4. Article 5 deals with the co-existence of non-trade union workers’ representatives and trade union representatives in the same workplace:
   “Where there exists in the same undertaking both trade union representatives and elected representatives, appropriate measures shall be taken, wherever necessary, to ensure that the existence of elected representatives is not used to undermine the position of the trade unions concerned or their representatives and to encourage co-operation on all relevant matters between the elected representatives and the trade unions concerned and their representatives.”

Convention 154 on Collective Bargaining further defines the scope, definition, application and promotion of collective bargaining rights. Article 3 provides parameters for national law to define and protect collective bargaining when non-trade union workers’ representatives are involved. These workers may, if national law allows, be permitted to engage in collective bargaining legitimately as long as they do not undermine the position of the workers’ organisations concerned (Note: these worker representatives have a different role than SA8000 worker representatives).

5). DISCRIMINATION

Among the ILO’s eight core fundamental conventions, two are related to workplace equality: Discrimination Convention 111 (1958) and Equal Remuneration Convention 100 (1951). These core conventions are fundamental to the rights of workers, irrespective of levels of economic development of individual member States. Convention 100 aims to eliminate wage discrimination between men and women through implementation of the principle of equal pay for work of equal value. Convention 111 prohibits discrimination on the basis of gender in employment and occupation. As of 2016, 171 countries had ratified Convention 100, and 172 countries had ratified Convention 111. There are 186 member countries to the ILO, so the high number of ratifications of these conventions indicates a common international stance against discrimination in the workplace. Additionally, they are fundamental conventions, all member States are committed to respecting the principles they enshrine under 1998 Declaration on Fundamental Principles and Rights at Work, which is also endorsed by the UN Guiding Principles.

Other international standards promoting workplace equality include:
1. Gender equality and women’s rights:
   1. UN Convention on the Elimination of All Forms of Discrimination Against Women
   2. ILO Workers with Family Responsibilities Convention 156 (1981) and Recommendation 165)
   3. ILO Maternity Protection Convention 183 (2000) and Recommendation 191
   4. ILO Migration for Employment Convention (Revised) 97 (1949)
   5. LO Night Work (Women) Convention (Revised) 89 (1948)
2. Rights of people with disabilities:
   1. ILO Vocational Rehabilitation and Employment - Disabled Persons Convention159 (1983)
   2. UN Convention on the Rights of Persons with Disabilities

Many countries have national legislation prohibiting discrimination based on race, sex, age, and other personal characteristics. National laws typically cover the following issues:

1. Equal opportunity in employment: An increasing number of countries outlaw gender-biased practices that compromise men or women’s opportunities for employment and advancement.
2. Equal pay for equal work: The principle of equal pay for equal work is central to the promotion of equality in workplaces. Wage discrepancies between men and women still exist in a vast majority of countries, a consequence of both direct wage discrimination and also women’s limited access to higher income jobs, such as positions in management. Currently, most labour legislation prohibits direct wage discrimination, yet only a few nations address the issue of unfair division of labour in their legal codes.
3. Maternity protection and promotion of family responsibilities: Many nations’ legal systems offer three basic protections for women workers: maternity leave, cash benefits payable during leave, and employment security. Not all workers, however, are eligible for such protections. In some countries maternity leave applies only to workers in the private and most countries have not yet extended the legal protection to migrant workers, part-time workers, or home workers. Moreover, only recently have some countries granted paternal leave.
4. Occupational health and safety: A number of national laws protect women from certain categories of work which might pose a danger to women’s health and safety. Korea and China, for example, require special protection for women engaged in hazardous work, night work, underground work, and work during pregnancy and/or while nursing. In general, despite legislated anti-discrimination measures in various countries, discrimination in the workplace persists. Enforcement mechanisms set up by national governments are often inadequate, particularly regarding the application of national laws in the private sector.

6). DISCIPLINARY PRACTICES

The ILO does not have a specific convention addressing workplace disciplinary practices. However, three United Nations agreements establish the international normative basis for the SA8000 Standard requirements on disciplinary practices: the Universal Declaration of Human Rights (1948), the International Covenant on Civil and Political Rights (1966), and the Declaration on the Protection of All Persons from Being Subjected to Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment (1975).

Aiming to protect both the dignity and the physical and mental health of any individual, these instruments explicitly forbid torture or cruel, inhuman or degrading treatment or punishment anytime by any authority, even in situations of public emergency.

The vast majority of the UN member states have ratified these treaties, indicating their commitment to abolish any practice that may compromise or damage an individual’s physical and mental well-being. Many countries have specific national legislation making abuse in the workplace a criminal offense.

7). WORKING HOURS

The ILO has published numerous conventions specifically addressing the issue of working hours, which apply to a variety of industrial undertakings and workplaces, including but not limited to Convention 1 (Hours of Work – Industry) and Recommendation 116 (Reduction of Hours of Work). According to these conventions and SA8000, the general rule is that workers cannot work more than eight hours a day, 5 or 6 days a week, for a maximum of 48 hours a week. Workers should be provided certain rest periods and overtime is permitted under certain circumstances.

Working hours are generally governed by national laws and regulations and vary considerably from one country to another. For example, China’s 1995 National Labour Law sets a maximum for overtime at three hours per day and 36 hours per month, while Vietnam’s Labour Act of 1994 sets a daily overtime limit of four hours and an annual limit of 200 hours. Many other countries’ national laws, including Italy, India, Indonesia, Pakistan, Thailand, Brazil, and Mexico include explicit limits on hours worked within a particular period.

The nine countries mentioned above also have differing specific requirements on voluntary overtime: Mexican law states that workers are not obligated to work overtime under normal circumstances; Italian and Chinese law require prior negotiation with trade unions or workers’ representatives; Brazilian law requires workers’ written agreement on overtime.

8). REMUNERATION

The Minimum Wage Fixing Convention 131 (1970) specifies in Article 3 (a) and (b) that the following two elements are taken into consideration by countries seeking to determine an appropriate minimum wage level to be enforced legally:

“The needs of workers and their families taking into account the general level of wages in the country, the cost of living, social security benefits, and the relative living standards of other social groups;
Economic factors, including the requirements of economic development, levels of productivity, and the desirability of attaining and maintaining a high level of employment.”

In most countries, these two considerations are at odds and may not be weighted equally in the determination of the legal minimum wage. To attract foreign investment and international buyers, countries may emphasize economic growth and development. Minimum wages are often set to compete with low cost suppliers in other countries and not to promote workers’ welfare. Therefore many countries have minimum wage levels that do not meet the basic needs of workers and their families. These wages also frequently do not reflect inflation and other factors that affect actual standards of living. Lack of enforcement of even these minimal rates of pay is common, forcing workers to work excessive overtime in order to earn enough to meet basic needs.

1. POLICIES

• MSPO Policy
• OSH Policy
• Good Social Practices Policy
• Sexual Harassment Policy
• Envronmental Policy

2. PROCEDURES / S.O.P

• Internal Audit
• Communication Procedure
• Complaint System
• Traceability SOP
• Training Procedure
• Best Practices / Site Management
• Chemical Handling SOP
• Accident and Emergency Procedure
• Scheduled Waste Handling SOP

3. DOCUMENTS

• Internal Audit Result
• Land Title
• free prior informed consent (FPIC)
• OSH Plan
• Risk Management (HIRARC)
• Waste Management Plan
• Energy Plan
• Pollution Assessment
• Water Management Plan
• Business Management Plan
• Pricing Mechamism/Contract
• Contractor Agreement

4. RECORDS

• List of Stakeholders
• Communication/Feedbac from stakeholders
• Sales and Delivery
• Legal Register
• Complaint Records
• Land Title
• free prior informed consent (FPIC)
• OSH Meeting/Communication
• Accident and Incident
• List of Employee
• Pay slips
• Job Description
• Training Program

5. REVIEW PROCESS

• Management Review
• Accident Record
• Long term replanting programme
• Business Management Goal and Objectives

6. APPOINTMENT OF PERSONNEL

• Responsible person to communicate with Stakeholders
• Traceability Officer
• Legal Officer
• Safety Officer
• Trained First Aider

7. CONTRACTOR ENGAGEMENT

• understand the MSPO requirements
• With Contract Agreement
• Employee of Contractor with employment contract
• be trained
• Fuel usage
• Job Description

8. NEW PLANTINGS DEVELOPMENT

• SEIA
• New plantings development Plan
• FPIC
• Customary Land Legal Assessment
• Customary Land Compensation

This Training Material is Belong to OSH ISIS Integrated Solution

Malaysian Sustainable Palm Oil (MSPO) Part 3: General principles for oil palm plantations and organised smallholders

Content

1 Scope

2 Normative references

3 Terms and definitions

4 Principles and criteria

• 4.1 Principle 1: Management commitment and responsibility

  • 4.1.1 Criterion 1: Malaysian Sustainable Palm Oil (MSPO) Policy

  • 4.1.2 Criterion 2: Internal audit

  • 4.1.3 Criterion 3: Management review

  • 4.1.4 Criterion 4: Continual improvement

• 4.2 Principle 2: Transparency

  • 4.2.1 Criterion 1: Transparency of information and documents relevant to MSPO requirement

  • 4.2.2 Criterion 2: Transparent method of communication and consultation

  • 4.2.3 Criterion 3: Traceability

• 4.3 Principle 3: Compliance to legal requirements

  • 4.3.1 Criterion 1: Regulatory requirements

  • 4.3.2 Criterion 2: Land use rights

  • 4.3.3 Criterion 3: Customary rights

• 4.4 Principle 4: Social responsibility, health, safety and employment condition

  • 4.4.1 Criterion 1: Social impact assessment (SIA)

  • 4.4.2 Criterion 2: Complaints and grievances

  • 4.4.3 Criterion 3: Commitment to contribute to local sustainable development

  • 4.4.4 Criterion 4: Employees safety and health

  • 4.4.5 Criterion 5: Employment conditions

  • 4.4.6 Criterion 6: Training and competency

• 4.5 Principle 5: Environment, natural resources, biodiversity and ecosystem services

  • 4.5.1 Criterion 1: Environmental management plan

  • 4.5.2 Criterion 2: Efficiency of energy use and use of renewable energy

  • 4.5.3 Criterion 3: Waste management and disposal

  • 4.5.4 Criterion 4: Reduction of pollution and emission

  • 4.5.5 Criterion 5: Natural water resources

  • 4.5.6 Criterion 6: Status of rare, threatened, or endangered species and high biodiversity value area

  • 4.5.7 Criterion 7: Zero burning practices

• 4.6 Principle 6: Best practices

  • 4.6.1 Criterion 1: Site management

  • 4.6.2 Criterion 2: Economic and financial viability plan

  • 4.6.3 Criterion 3: Transparent and fair price dealing

  • 4.6.4 Criterion 4: Contractor

• 4.7 Principle 7: Development of new plantings

  • 4.7.1 Criterion 1: High biodiversity value

  • 4.7.2 Criterion 2: Peat land

  • 4.7.3 Criterion 3: Social and Environmental Impact Assessment (SEIA)

  • 4.7.4 Criterion 4: Soil and topographic information

  • 4.7.5 Criterion 5: Planting on steep terrain, marginal and fragile soils

  • 4.7.6 Criterion 6: Customary land

This Training Material is Belong to OSH ISIS Integrated Solution

Principles and Criteria

Main

1 SCOPE

This Malaysian Standard provides general principles on the requirements for plantations and organised smallholders to establish, maintain and improve their operational practices within a management system framework, which enables the adoption of a systematic and integrated approach towards attaining sustainable production of palm oil.

This standard covers the key areas of operations, comprising plantation management systems, which involve activities ranging from the raising of seedlings in the nursery to field planting and to the production of Fresh Fruit Bunches (FFB).

The MSPO standard applies to all factors affecting palm oil production and its use can be monitored and influenced by the organisation. This standard is applicable with reference to the MPOB Codes of Practice and the Malaysian Standard Good Agricultural Practice (MS:GAP) and can be used with other management systems and implemented by all plantations dealing with oil palm oil cultivation and the production of FFB.

2. NORMATIVE REFERENCES

The following normative references are indispensable for the application of this standard. For dated references, only the edition cited applies. For undated references, the latest edition of the normative reference (including amendments) applies.

Code of Good Nursery Practice for Oil Palm nurseries, Malaysian Palm Oil Board

Code of Good Agricultural Practice for Oil Palm Estates and Smallholdings, Malaysian Palm Oil Board

Code of Good Practice for the Handling, Transport and Storage of Products from the Oil Palm, Malaysian Palm Oil Board

Guidelines for the Development of a Standard Operating Procedure for Oil Palm Cultivation on Peat, Malaysian Palm Oil Board

Kod Amalan Baik (GAP) Pekebun Kecil, Malaysian Palm Oil Board

3. TERMS AND DEFINITIONS

3.1 biodiversity

3.2 child

3.3 customary rights

3.4 environmental impact assessment (EIA)

3.5 environmentally sensitive areas (ESAs)

3.6 fragile soils

3.7 greenhouse gas (GHG)

3.8 high biodiversity value

1. primary forest.
2. Areas designated by law or by the relevant competent authority to serve the purpose of nature protection.
3. Areas for the protection of rare, threatened or endangered ecosystems or species recognized by international agreements or included in lists drawn up by intergovernmental organizations.

3.9 organised smallholders

3.10 peat soils

3.11 primary forest

3.12 social impact assessment (SIA)

3.13 social and environmental impact assessment (SEIA)

3.14 stakeholders

3.15 sustainable development

3.16 young person

This Training Material is Belong to OSH ISIS Integrated Solution

4. PRINCIPLES AND CRITERIA

4.1 Principle 1: Management commitment and responsibility

Main

4.1.1 Criterion 1: Malaysian Sustainable Palm Oil (MSPO) Policy

4.1.1.1 Indicator 1: A policy for the implementation of MSPO shall be established.

4.1.1.2 Indicator 2: The policy shall also emphasize commitment to continual improvement

4.1.2 Criterion 2: Internal audit

4.1.2.1 Indicator 1: Internal audit shall be planned and conducted regularly to determine the strong and weak points and potential area for further improvement.

4.1.2.2 Indicator 2: The internal audit procedures and audit results shall be documented and evaluated, followed by the identification of strengths and root causes of nonconformities, in order to implement the necessary corrective action.

4.1.2.3 Indicator 3: Report shall be made available to the management for their review.

4.1.3 Criterion 3: Management review

4.1.3.1 Indicator 1: The management shall periodically review the continuous suitability, adequacy and effectiveness of the requirements for effective implementation of MSPO and decide on any changes, improvement and modification.

4.1.4 Criterion 4: Continual improvement

4.1.4.1 Indicator 1: The action plan for continual improvement shall be based on consideration of the main social and environmental impact and opportunities of the company.

4.1.4.2 Indicator 2: The company shall establish a system to improve practices in line with new information and techniques or new industry standards and technology, where applicable, that are available and feasible for adoption.

4.1.4.3 Indicator 3: An action plan to provide the necessary resources including training, to implement the new techniques or new industry standard or technology (where applicable) shall be established.

Expectation to comply on Management Commitment

4.2 Principle 2: Transparency

Main

4.2.1 Criterion 1: Transparency of information and documents relevant to MSPO requirement

4.2.1.1 Indicator 1: The management shall communicate the information requested by the relevant stakeholders in the appropriate languages and forms, except those limited by commercial confidentiality or disclosure that could result in negative environmental or social outcomes

4.2.1.2 Indicator 2: Management documents shall be publicly available, except where this is prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes.

4.2.2 Criterion 2: Transparent method of communication and consultation

4.2.2.1 Indicator 1: Procedures shall be established for consultation and communication with the relevant stakeholders.

4.2.2.2 Indicator 2: A management official should be nominated to be responsible for issues related to Indicator 1 at each operating unit.

4.2.2.3 Indicator 3: List of stakeholders, records of all consultation and communication and records of action taken in response to input from stakeholders should be properly maintained.

4.2.3 Criterion 3: Traceability

4.2.3.1 Indicator 1: The management shall establish, implement and maintain a standard operating procedure to comply with the requirements for traceability of the relevant product(s).

4.2.3.2 Indicator 2: The management shall conduct regular inspections on compliance with the established traceability system.

4.2.3.3 Indicator 3: The management should identify and assign suitable employees to implement and maintain the traceability system.

4.2.3.4 Indicator 4: Records of sales, delivery or transportation of FFB shall be maintained.

Expectation to comply on Transparency

Main

4.3 Principle 3: Compliance to legal requirements

4.3.1 Criterion 1: Regulatory requirements

4.3.1.1 Indicator 1: All operations are in compliance with the applicable local, state, national and ratified international laws and regulations.

4.3.1.2 Indicator 2: The management shall list all laws applicable to their operations in a legal requirements register.

4.3.1.3 Indicator 3: The legal requirements register shall be updated as and when there are any new amendments or any new regulations coming into force.

4.3.1.4 Indicator 4: The management should assign a person responsible to monitor compliance and to track and update the changes in regulatory requirements.

4.3.2 Criterion 2: Land use rights

4.3.2.1 Indicator 1: The management shall ensure that their oil palm cultivation activities do not diminish the land use rights of other users.

4.3.2.2 Indicator 2: The management shall provide documents showing legal ownership or lease, history of land tenure and the actual use of the land.

4.3.2.3 Indicator 3: Legal perimeter boundary markers should be clearly demarcated and visibly maintained on the ground where practicable.

4.3.2.4 Indicator 4: Where there are, or have been, disputes, documented proof of legal acquisition of land title and fair compensation that have been or are being made to previous owners and occupants; shall be made available and that these should have been accepted with free prior informed consent (FPIC).

4.3.3 Criterion 3: Customary rights

4.3.3.1 Indicator 1: Where lands are encumbered by customary rights, the company shall demonstrate that these rights are understood and are not being threatened or reduced.

4.3.3.2 Indicator 2: Maps of an appropriate scale showing extent of recognized customary rights shall be made available.

4.3.3.3 Indicator 3: Negotiation and FPIC shall be recorded and copies of negotiated agreements should be made available

Expectation to comply on Legal Requirement

Main

Principle 4: Social responsibility, health, safety and employment condition

4.4.1 Criterion 1: Social impact assessment (SIA)

4.4.1.1 Indicator 1: Social impact should be identified and plans are implemented to mitigate the negative impacts and promote the positive ones.

4.4.2 Criterion 2: Complaints and grievances

4.4.2.1 Indicator 1: A system for dealing with complaints and grievances shall be established and documented.

4.4.2.2 Indicator 2: The system shall be able to resolve disputes in an effective, timely and appropriate manner that is accepted by all parties.

4.4.2.3 Indicator 3: A complaint form should be made available at the premises, where employees and affected stakeholders can make a complaint.

4.4.2.4 Indicator 4: Employees and the surrounding communities should be made aware that complaints or suggestions can be made any time.

4.4.2.5 Indicator 5: Complaints and resolutions for the last 24 months shall be documented and made available to affected stakeholders upon request.

4.4.3 Criterion 3: Commitment to contribute to local sustainable development

4.4.3.1 Indicator 1: Growers should contribute to local development in consultation with the local communities.

Expectation to comply on Social Aspects

4.4.4 Criterion 4: Employees safety and health

4.4.4.1 Indicator 1: An occupational safety and health policy and plan shall be documented, effectively communicated and implemented.

4.4.4.2 Indicator 2: The occupational safety and health plan shall cover the following:

1. A safety and health policy, which is communicated and implemented
2. The risks of all operations shall be assessed and documented
3. An awareness and training programme which includes the following requirements for employees exposed to pesticides:
1. all employees involved shall be adequately trained on safe working practices; and
2. all precautions attached to products shall be properly observed and applied.
4. The management shall provide the appropriate personal protective equipment ( PPE) at the place of work to cover all potentially hazardous operations as identified in the risk assessment and control such as Hazard Identification, Risk Assessment and Risk Control (HIRARC).
5. The management shall establish Standard Operating Procedure for handling of chemicals to ensure proper and safe handling and storage in accordance to Occupational Safety Health (Classification Packaging and Labeling) Regulation 1997 and Occupational Safety Health (Use and Standard of Exposure of Chemical Hazardous to Health) Regulation 2000.
6. The management shall appoint responsible person(s) for workers' safety and health. The appointed person(s) of trust must have knowledge and access to latest national regulations and collective agreements.
7. The management shall conduct regular two-way communication with their employees where issues affecting their business such as employee's health, safety and welfare are discussed openly. Records from such meetings are kept and the concerns of the employees and any remedial actions taken are recorded.
8. Accident and emergency procedures shall exist and instructions shall be clearly understood by all employees.
9. Employees trained in First Aid should be present at all field operations.
10. A First Aid Kit equipped with approved contents should be available at each worksite.
11. Records shall be kept of all accidents and be reviewed periodically at quarterly intervals.

Expectation to comply on Occupational Safety and Health

4.4.5 Criterion 5: Employment conditions

4.4.5.1 Indicator 1: The management shall establish policy on good social practices regarding human rights in respect of industrial harmony. The policy shall be signed by the top management and effectively communicated to the employees.

4.4.5.2 Indicator 2: The management shall not engage in or support discriminatory practices and shall provide equal opportunity and treatment regardless of race, colour, sex, religion, political opinion, nationality, social origin or any other distinguishing characteristics.

4.4.5.3 Indicator 3: Management shall ensure that employees’ pay and conditions meet legal or industry minimum standards and as per agreed Collective Agreements. The living wage should be sufficient to meet basic needs and provide some discretionary income based on minimum wage.

4.4.5.4 Indicator 4: Management should ensure employees of contractors are paid based on legal or industry minimum standards according to the employment contract agreed between the contractor and his employee.

4.4.5.5 Indicator 5: The management shall establish records that provide an accurate account of all employees (including seasonal workers and subcontracted workers on the premises). The records should contain full names, gender, date of birth, date of entry, a job description, wage and the period of employment.

4.4.5.6 Indicator 6: All employees shall be provided with fair contracts that have been signed by both employee and employer. A copy of employment contract is available for each and every employee indicated in the employment records.

4.4.5.7 Indicator 7: The management shall establish a time recording system that makes working hours and overtime transparent for both employees and employer.

4.4.5.8 Indicator 8: The working hours and breaks of each individual employee as indicated in the time records shall comply with legal regulations and collective agreements. Overtime shall be mutually agreed and shall always be compensated at the rate applicable and shall meet the applicable legal requirement.

4.4.5.9 Indicator 9: Wages and overtime payment documented on the pay slips shall be in line with legal regulations and collective agreements.

4.4.5.10 Indicator 10: Other forms of social benefits should be offered by the employer to employees, their families or the community such as incentives for good work performance, bonus payment, professional development, medical care and health provisions.

4.4.5.11 Indicator 11: In cases where on-site living quarters are provided, these quarters shall be habitable and have basic amenities and facilities in compliance with the Workers' Minimum Standards Housing and Amenities Act 1990 (Act 446) or any other applicable legislation.

4.4.5.12 Indicator 12: The management shall establish a policy and provide guidelines to prevent all forms of sexual harassment and violence at the workplace.

4.4.5.13 Indicator 13: The management shall respect the right of all employees to form or join trade union and allow workers own representative(s) to facilitate collective bargaining in accordance with applicable laws and regulations. Employees shall be given the freedom to join a trade union relevant to the industry or to organize themselves for collective bargaining. Employees shall have the right to organize and negotiate their work conditions. Employees exercising this right should not be discriminated against or suffer repercussions.

4.4.5.14 Indicator 14: Children and young persons shall not be employed or exploited. The minimum age shall comply with local, state and national legislation. Work by children and young persons is acceptable on family farms, under adult supervision, and when not interfering with their education. They shall not be exposed to hazardous working conditions.

Expectation to comply on Employment Condition

4.4.6 Criterion 6: Training and competency

4.4.6.1 Indicator 1: All employees, contractors and relevant smallholders are appropriately trained. A training programme (appropriate to the scale of the organization) that includes regular assessment of training needs and documentation, including records of training shall be kept.

4.4.6.2 Indicator 2: Training needs of individual employees shall be identified prior to the planning and implementation of the training programmes in order to provide the specific skill and competency required to all employees based on their job description.

4.4.6.3 Indicator 3: A continuous training programme should be planned and implemented to ensure that all employees are well trained in their job function and responsibility, in accordance to the documented training procedure

Expectation to comply on Training Program

Main

4.5 Principle 5: Environment, natural resources, biodiversity and ecosystem services

4.5.1 Criterion 1: Environmental management plan

4.5.1.1 Indicator 1: An environmental policy and management plan in compliance with the relevant country and state environmental laws shall be developed, effectively communicated and implemented.

4.5.1.2 Indicator 2: The environmental management plan shall cover the following:

1. An environmental policy and objectives.
2. The aspects and impacts analysis of all operations

4.5.1.3 Indicator 3: An environmental improvement plan to mitigate the negative impacts and to promote the positive ones, shall be developed, effectively implemented and monitored.

4.5.1.4 Indicator 4: A programme to promote the positive impacts should be included in the continual improvement plan.

4.5.1.5 Indicator 5: An awareness and training programme shall be established and implemented to ensure that all employees understand the policy and objectives of the environmental management and improvement plans and are working towards achieving the objectives.

4.5.1.6 Indicator 6: Management shall organize regular meetings with employees where their concerns about environmental quality are discussed.

Expectation to comply on Environmental Management Plan

4.5.2 Criterion 2: Efficiency of energy use and use of renewable energy

4.5.2.1 Indicator 1: Consumption of non-renewable energy shall be optimized and closely monitored by establishing baseline values and trends shall be observed within an appropriate timeframe. There should be a plan to assess the usage of non-renewable energy including fossil fuel, electricity and energy efficiency in the operations over the base period.

4.5.2.2 Indicator 2: The oil palm premises shall estimate the direct usage of non-renewable energy for their operations, including fossil fuel, and electricity to determine energy efficiency of their operations. This shall include fuel use by contractors, including all transport and machinery operations.

4.5.2.3 Indicator 3: The use of renewable energy should be applied where possible.

Expectation to comply on Energy Plan

4.5.3 Criterion 3: Waste management and disposal

4.5.3.1 Indicator 1: All waste products and sources of pollution shall be identified and documented.

4.5.3.2 Indicator 2: A waste management plan to avoid or reduce pollution shall be developed and implemented. The waste management plan should include measures for:

1. Identifying and monitoring sources of waste and pollution.
2. Improving the efficiency of resource utilization and recycling of potential wastes as nutrients or converting them into value-added by-products.

4.5.3.3 Indicator 3: The management shall establish Standard Operating Procedure for handling of used chemicals that are classified under Environment Quality Regulations (Scheduled Waste) 2005, Environmental Quality Act, 1974 to ensure proper and safe handling, storage and disposal.

4.5.3.4 Indicator 4: Empty pesticide containers shall be punctured and disposed in an environmentally and socially responsible way, such that there is no risk of contamination of water sources or to human health. The disposal instructions on manufacturer’s labels should be adhered to. Reference should be made to the national programme on recycling of used HDPE pesticide containers.

4.5.3.5 Indicator 5: Domestic waste should be disposed as such to minimize the risk of contamination of the environment and watercourses.

Expectation to comply on Waste Management Plan

4.5.4 Criterion 4: Reduction of pollution and emission

4.5.4.1 Indicator 1: An assessment of all polluting activities shall be conducted, including greenhouse gas emissions, scheduled wastes, solid wastes and effluent.

4.5.4.2 Indicator 2: An action plan to reduce identified significant pollutants and emissions shall be established and implemented.

Expectation to comply on Pollution Assessment

4.5.5 Criterion 5: Natural water resources

4.5.5.1 Indicator 1: The management shall establish a water management plan to maintain the quality and availability of natural water resources (surface and ground water). The water management plan may include:

1. Assessment of water usage and sources of supply.
2. Monitoring of outgoing water which may have negative impacts into the natural waterways at a frequency that reflects the estate’s current activities.
3. Ways to optimize water and nutrient usage to reduce wastage (e.g. having in place systems for re-use, night application, maintenance of equipment to reduce leakage, collection of rainwater, etc.).
4. Protection of water courses and wetlands, including maintaining and restoring appropriate riparian buffer zones at or before planting or replanting, along all natural waterways within the estate.
5. Where natural vegetation in riparian areas has been removed, a plan with a timetable for restoration shall be established and implemented
6. Where bore well is being use for water supply, the level of the ground water table should be measured at least annually.

4.5.5.2 Indicator 2: No construction of bunds, weirs and dams across main rivers or waterways passing through an estate.

4.5.5.3 Indicator 3: Water harvesting practices should be implemented (e.g. water from road-side drains can be directed and stored in conservation terraces and various natural receptacles).

Expectation to comply on Water Management Plan

4.5.6 Criterion 6: Status of rare, threatened, or endangered species and high biodiversity value area

4.5.6.1 Indicator 1: Information shall be collated that includes both the planted area itself and relevant wider landscape-level considerations (such as wildlife corridors). This information should cover:

1. Identification of high biodiversity value habitats, such as rare and threatened ecosystems, that could be significantly affected by the grower(s) activities.
2. Conservation status (e.g. The International Union on Conservation of Nature and Natural Resources (IUCN) status on legal protection, population status and habitat requirements of rare, threatened, or endangered species), that could be significantly affected by the grower(s) activities.

4.5.6.2 Indicator 2: If rare, threatened or endangered species, or high biodiversity value, are present, appropriate measures for management planning and operations should include:

1. Ensuring that any legal requirements relating to the protection of the species are met.
2. Discouraging any illegal or inappropriate hunting, fishing or collecting activities and developing responsible measures to resolve human-wildlife conflicts.

4.5.6.3 Indicator 3: A management plan to comply with Indicator 1 shall be established and effectively implemented, if required.

Expectation to comply on Biodiversity Assessment

4.5.7 Criterion 7: Zero burning practices

4.5.7.1 Indicator 1: Use of fire for waste disposal and for preparing land for oil palm cultication or replanting shall be avoided except in specific situations, as identified in regional best practice.

4.5.7.2 Indicator 2: A special approval from the relevant authorities shall be sought in areas where the previous crop is highly diseased and where there is a significant risk of disease spread or continuation into the next crop.

4.5.7.3 Indicator 3: Where controlled burning is allowed, it shall be carried out as prescribed by the Environmental Quality (Declared Activities) (Open Burning) Order 2003 or other applicable laws.

4.5.7.4 Indicator 4: Previous crops should be felled or mowed down, chipped and shredded, windrowed or pulverized or ploughed and mulched

Expectation to comply on Zero Burning Practices

Main

4.6 Principle 6: Best practices

4.6.1 Criterion 1: Site management

4.6.1.1 Indicator 1: Standard operating procedures shall be appropriately documented and consistently implemented and monitored.

4.6.1.2 Indicator 2: Where oil palm is grown within permitted levels on sloping land, appropriate soil conservation measures shall be implemented to prevent both soil erosion as well as siltation of drains and waterways. Measures shall be put in place to prevent contamination of surface and groundwater through runoff of either soil, nutrients or chemicals.

4.6.1.3 Indicator 3: A visual identification or reference system shall be established for each field.

Expectation to comply on Best Practices

4.6.2 Criterion 2: Economic and financial viability plan

4.6.2.1 Indicator 1: A documented business or management plan shall be established to demonstrate attention to economic and financial viability through long-term management planning.

4.6.2.2 Indicator 2: Where applicable, an annual replanting programme shall be established. Long term replanting programme should be established and review annually, where applicable every 3-5 years.

4.6.2.3 Indicator 3: The business or management plan may contain:

1. Attention to quality of planting materials and FFB.
2. Crop projection: site yield potential, age profile, FFB yield trends.
3. Cost of production: cost per tone of FFB.
4. Price forecast.
5. Financial indicators: cost benefit, discounted cash flow, return on investment.

4.6.2.4 Indicator 4: The management plan shall be effectively implemented and the achievement of the goals and objectives shall be regularly monitored, periodically reviewed and documented.

Expectation to comply on Business Management Plan

4.6.3 Criterion 3: Transparent and fair price dealing

4.6.3.1 Indicator 1: Pricing mechanisms for the products and other services shall be documented and effectively implemented.

4.6.3.2 Indicator 2: All contracts shall be fair, legal and transparent and agreed payments shall be made in timely manner.

Expectation to comply on Pricing Mechanism

4.6.4 Criterion 4: Contractor

4.6.4.1 Indicator 1: Where contractors are engaged, they shall understand the MSPO requirements and shall provide the required documentation and information.

4.6.4.2 Indicator 2: The management shall provide evidence of agreed contracts with the contractor.

4.6.4.3Indicator 3: The management shall accept MSPO approved auditors to verify assessments through a physical inspection if required.

4.6.4.4Indicator 4: The management shall be responsible for the observance of the control points applicable to the tasks performed by the contractor, by checking and signing the assessment of the contractor for each task and season contracted.

Expectation to comply on Contractor Management

Main

4.7 Principle 7: Development of new plantings

4.7.1 Criterion 1: High biodiversity value

4.7.1.1 Indicator 1: Oil palm shall not be planted on land with high biodiversity value unless it is carried out in compliance with the National and/or State Biodiversity Legislation.

4.7.1.2 Indicator 2: No conversion of Environmentally Sensitive Areas (ESAs) to oil palm as required under Peninsular Malaysia’s National Physical Plan (NPP) and the Sabah Forest Management Unit under the Sabah Forest Management License Agreement. For Sabah and Sarawak, new planting or replanting of an area 500ha or more requires an EIA. For areas below 500ha but above 100ha, a Proposal for Mitigation Measures (PMM) is required.

4.7.2 Criterion 2: Peat land

4.7.2.1 Indicator 1: New planting and replanting may be developed and implemented on peat land as per MPOB guidelines on peat land development or industry best practice.

4.7.3 Criterion 3: Social and Environmental Impact Assessment (SEIA)

4.7.3.1 Indicator 1: A comprehensive and participatory social and environmental impact assessment shall be conducted prior to establishing new plantings or operations.

4.7.3.2 Indicator 2: SEIAs shall include previous land use or history and involve independent consultation as per national and state regulations, via participatory methodology which includes external stakeholders.

4.7.3.3 Indicator 3: The results of the SEIA shall be incorporated into an appropriate management plan and operational procedures developed, implemented, monitored and reviewed.

4.7.3.4 Indicator 4: Where the development includes smallholder schemes of above 500ha in total or small estates, the impacts and implications of how each scheme or small estate is to be managed should be documented and a plan to manage the impacts developed, implemented, monitored and reviewed.

4.7.4 Criterion 4: Soil and topographic information

4.7.4.1 Indicator 1: Information on soil types shall be adequate to establish the long-term suitability of the land for oil palm cultivation.

4.7.4.1 Indicator 2: Topographic information shall be adequate to guide the planning of planting programmes, drainage and irrigation systems, roads and other infrastructure.

4.7.5 Criterion 5: Planting on steep terrain, marginal and fragile soils

4.7.5.1 Indicator 1: Extensive planting on steep terrain, marginal and fragile soils shall be avoided unless permitted by local, state and national laws.

4.7.5.2 Indicator 2: Where planting on fragile and marginal soils is proposed, plans shall be developed and implemented to protect them and to minimize adverse impacts (e.g. hydrological) or significantly increased risks (e.g. fire risk) in areas outside the plantation.

4.7.5.3 Indicator 3: Marginal and fragile soils, including excessive gradients and peat soils, shall be identified prior to conversion.

4.7.6 Criterion 6: Customary land

4.7.6.1 Indicator 1: No new plantings are established on recognised customary land without the owners’ free, prior and informed consent, dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions.

4.7.6.2 Indicator 2: Where new plantings on recognised customary lands are acceptable, management plans and operations should maintain sacred sites.

4.7.6.3Indicator 3: Where recognized customary or legally owned lands have been taken-over, the documentary proof of the transfer of rights and of payment or provision of agreed compensation shall be made available.

4.7.6.4Indicator 4: The owner of recognised customary land shall be compensated for any agreed land acquisitions and relinquishment of rights, subject to their free prior informed consent and negotiated agreement.

4.7.6.5 Indicator 5: Identification and assessment of legal and recognised customary rights shall be documented.

4.7.6.6 Indicator 6: A system for identifying people entitled to compensation and for calculating and distributing fair compensation shall be established and implemented.

4.7.6.7 Indicator 7: The process and outcome of any compensation claims shall be documented and made publicly available.

4.7.6.8 Indicator 8: Communities that have lost access and rights to land for plantation expansion should be given opportunities to benefit from the plantation development.

Expectation to comply on New Planting Development

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