(Incorporated in Malaysia)
SUSTAINABILITY STATEMENT
53 Our People (cont’d.)
• Human Resource Practices (cont’d.)
• Social Compliance
Social compliance refers to our responsibility to protect the health, safety, and rights of our people, the community and environment in which we operate, and the lives and communities of workers in our supply and distribution chains. Our increasingly marked practice of social compliance – including those of labor and human rights – is evident in our obtaining of the MSPO certification, which entails having in place grievance mechanisms and stakeholder engagements. Our operating units (OUs) continued to be certified under the MSPO and MSPO Supply Chain Certification Scheme (MSPO-SCCS) regime after the OUs were audited.
We strive to create a conducive environment for our stakeholders where they are safe and free to raise their grievances through our complaints and grievance mechanisms. Our stakeholder engagements are not restricted to stakeholder meetings alone, but also involves other formal and informal engagement processes where our operating units engage with stakeholders and act on the feedback they have received. Stakeholders are encouraged to report any illegal, unethical, or misconducts affecting them through allowing stakeholders to report misconduct without fear of retribution.
For FY2021, we have neither recorded any significant complaint nor received any fine pertaining to a breach in laws and regulations.
Interview with Mr. Andi, Loader
(Incorporated in Malaysia)
SUSTAINABILITY STATEMENT
Our Planet
• Waste and Effluent Management
Palm oil cultivators generate wastes in the form of lignocellulosic biomass, consisting of oil palm trunks (OPT), oil palm fronds (OPF), empty fruit bunches (EFB), decanter cake, palm kernel shells and palm oil mill effluent (POME).
Our management’s approach to wastes disposal is to minimise, recycle and recover energy from wastes generated. Presently, our non-hazardous production waste such as shells and fibres are used as a source of fuel for our biomass boilers for in- house energy generation in our mills or utilised as organic fertilisers to improve soil composition. We dispose our hazardous waste through licensed contractors in accordance with requirements by the Department of Environment (DoE).
All our operating units are registered on the DoE’s Electronic Scheduled Waste Information System (eSWIS), which is an online portal where we report the collection, transportation and disposal of our scheduled waste.
Types of Organic Wastes Mesocarp Fibre Palm Kernel Shell Empty Fruit Bunches Ratio of Wastes Repurpose to
FFB 0.15:1 0.05:1 0.23:1
Usage Reuse for combustion in boiler Reuse as organic mulch
in plantation
In FY2021, the Group generated 107.0 Metric Tonnes (MT) of non-hazardous waste, an increase of 35% due to the increased quantity of domestic waste across the group. Hazardous waste generated from agrochemicals recorded a 6% decrease to 4.2 MT, whereas petrol, oil and lubricant (POL) were slightly higher at 1.8 MT.
Table 4: Repurpose of Waste
1,720
5,493
1,800
4,190
1,780
4,450
1,810
4,170
Petrol, Oil and Lubricant Agrochemical
Total Hazardous Waste Generated (KG)
2021 2020 2019 2018 Diagram 14: Total hazardous waste generated
17.0
32.7
49.1 33.7
17.3 17.3
29.7 14.9
31.7 21.3
35.0 19.0
Gua Musang Estate and Palm Oil Mill Jemima Estate Keratong Estate, Division B Keratong Estate, Division A and Palm Oil Mill
Total Non-hazardous Wastes Generated (MT)
2021 2020 2019 Diagram 15: Total non-hazardous waste generated
sUsTAInABILITY sTATEMEnT
(COnT’d)
(Incorporated in Malaysia)
SUSTAINABILITY STATEMENT
55 Our Planet (cont’d.)
• Waste and Effluent Management (cont’d.) This year, we completed an upgrading project of our EFB handling yard in Keratong Estate Palm Oil Mill to provide further security against inadvertent contamination of the ground and ground water with EFB liquer.
POME has a very high Biochemical Oxygen Demand (BOD) and Chemical Oxygen Demand (COD), although it is a non-toxic waste, as no chemical is added during the oil extraction process. The Group treats the POME to reduce BOD and COD to a permissible level in accordance with local legal discharge requirements.
For FY2021, our total POME discharged by mills is 228,274m3, a 11% decrease from FY2020. We will continue to closely monitor the levels of our effluents to ensure we avoid any contamination of water sources.
• Water Management
Water is a critical input for oil palm production and the threat of climate change increases the intensity and frequency of natural disasters and water-related extreme events (unpredictable rainfall, flash floods and droughts). Resolving the challenges of the future requires a thorough re-evaluation of how water is managed on our estates, and how this can be repositioned in the broader context of overall water resources management and water security.
In line with our efforts to conserve water in our estates, we plant leguminous cover crops, wherever suitable during replanting to limit evaporative losses and conserve soil moisture. We also implement water conservation pits on terraces in line with recommended agronomic practice to maintain moisture for our palms.
In FY2021, we consumed a total of 283,674m3 of water for milling of FFB, a decrease of 6% as compared to our water consumption in FY2020.
POME discharged (m3/year) by mills FY2021 FY2020 FY2019 FY2018
Keratong 171,517 227,719 142,648 212,534
Gua Musang 56,757 29,681 12,276 13,647
Total 228,274 257,400 154,294 226,181
76,274 66,641 60,269
227,275 234,707 223,405
FY2019 FY2020 FY2021
Water Intake by Palm Oil Mills (m3/year)
Gua Musang Keratong 14.5
64.5
7.0
38.8
14.5
28.8
24.6
58.5
Keratong Gua Musang
Average POME Level (milligram/litre)
2021 2020 2019 2018 Diagram 16: Average POME level
Total: 301,348m3
Total: 303,549m3 Total: 283,674m3 Table 5: POME Discharged
Diagram 17: Water Intake
sUsTAInABILITY sTATEMEnT (COnT’d)
55
(Incorporated in Malaysia)
SUSTAINABILITY STATEMENT
Our Planet (cont’d.)
• Environmental Compliance
At Chin Teck, we ensure that we comply with all applicable environmental requirements where we operate, per the Environmental Quality Act 1974. Periodic self-assessments have been conducted in accordance with the DoE’s recommended approach of Guided Self Regulations. Our assessment involve analysis against criteria set out in the Environmental Mainstreaming Tools.
A few of our properties are sited close to forested areas but all our operating units have implemented monitoring and recording the status of rare, threatened or endangered species, as well as high biodiversity value areas. We collaborate with our employees and contractors and liaise with the Department of Wildlife and National Parks in this regard.
In compliance with the Clean Air Regulations 2014, we installed the Air Pollution Control System (APCS) and Continuous
Emission Monitoring System (CEMS) in our Gua Musang Estate Palm Oil Mill. The systems providers for our Keratong Estate Palm Oil Mill have been selected and the installation of the APCS and CEMS will be integrated with our palm oil mill upgrading plan in FY2022. Approvals have been sought and granted by the regulator for deferred operation of the APCS and CEMS.
In FY2021, there was no environmental-related breach observed.
Environmental Mainstreaming Tools:
• Environmental Policy
• Environmental Budgeting
• Environmental Monitoring Committee
• Environmental Facility
• Environmental Competency
• Environmental Reporting and Communication
• Environmental Transparency
APCS at Gua Musang Estate Palm Oil Mill