MSPO Guidance Part 4 030316 Edited

LEMBAGA MINYAK SAWIT MALAYSIA
(MALAYSIAN PALM OIL BOARD)
MALAYSIAN SUSTAINABLE PALM OIL (MSPO)

GUIDELINES FOR AUDITING
MS 2530-4:2013 GENERAL PRINCIPLES FOR PALM OIL MILLS
MSPO Clauses Indicators Major / Minor Guidelines Supporting document

4.1 Management commitment & responsibilities
4.1.1 Malaysian 4.1.1.1 Policy for the implementation Major  A written statement to  MSPO Policy
Sustainable of MSPO shall be indicate commitment to statement.
Palm Oil established. implementation of MSPO,
(MSPO) Policy signed by CEO or Head of
Mill / Engineering
Department.
 A written policy statement on
the commitment towards
sustainable production of
palm oil. This policy shall be
communicated to all levels of
the workforce and
stakeholders.
 Interview of personnel and

stakeholders whether they
are aware of the MSPO
Policy and its implementation
at the site.
MSPO-PART 4 (R1) Page 1 of 47

4.1.1.2 The policy shall also Major  The policy shall indicate  List of social and
emphasize on the commitment towards environmental
commitment to continual continuous improvement in impact.
improvement with the milling operations.  List of training
objective of improving the provided.
milling operation.
 Records on
attendance of
awareness
programme, technical
talk on social
environment and new
technology.
 Minutes of JKKK or
JKKP meeting.

4.1.2 Internal audit 4.1.2.1 Internal audit shall be Major  Internal audit plans should  MSPO internal audit
planned and conducted be documented. procedures
regularly to determine the  Internal audit should be document.
strong and weak points and conducted to highlight strong  Internal audit
potential area for further and weak points in the report/results,
improvement. specific area that needs including non-
further improvement. conformities.
 Assessment of internal
documents:
 MSPO internal audit
procedures document.
 Internal audit
report/results, including
non-conformities, if any.
 Mechanism of follow-up
activities such as
verification of the actions
taken & the reporting of
verification results is to
be established.
 Evaluation of the
competency of internal
auditors.

4.1.2.2 The internal audit procedures Major  The findings made by the  Internal audit
and audit results shall be internal auditor shall be report/results,
documented and evaluated, documented. including non-
followed by the identification conformities.
of strengths and root causes
of nonconformities, in order to
implement the necessary
corrective action.
4.1.2.3 Reports shall be made Major  The decisions arising from  Internal audit report.
available to the management the internal audit shall be  Minutes of the
for their review. documented. meeting of
 Top management review management review.
comments shall be minuted.
4.1.3 Management 4.1.3.1 The management shall Major  Management review report  Management review
review periodically review the shall be documented. report.
continuous suitability,  Minutes of management  Minutes of
adequacy and effectiveness meetings shall be reviewed. management
of the requirements for meetings.
effective implementation of  Assessment of internal
MSPO and decide on any documents:  Internal audit report.
changes, improvement and  Agenda and minutes of  Results of corrective
modification. management review action plan.
meeting.  Improvement plan
 Internal audit report. and timeline for
 Results of corrective implementation.
action plan.
 Improvement plan and
timeline for
implementation.

4.1.4 Continual 4.1.4.1 The action plan for continual Major  Such action plan shall be  Action plan for
improvement improvement shall be based made available to the continual
on a consideration of the auditors. improvement.
main social and  To include the 3P’s;
environmental impact and
opportunities for the - People
company. - Planet
- Profit
4.1.4.2 The company should Major  Verify the system.  List of new
establish a system to improve - The system must be information and
practices in line with new able to establish the techniques.
information and techniques; validity or  Training programme
and for disseminating this practicability of the of new
information throughout the new practices before technology/technique
workforce. being adopted. s.
- Training matrix  Continuous
proposed to enable improvement plan.
understanding and
 Budget allocation and
adoption of improved
timeline.
practices.
 Assessment report
Assessment of internal
on effectiveness of
documents:
training programme.
 Continuous
improvement plan for
key social and
environmental impacts,
implementation and
monitoring.
 Verification of the
system in terms of the
appropriateness &
effectiveness.

 Budget allocation for
implementation of
social, environmental
activities/new
technologies and their
timeline.
 Training programme to
the relevant personnel
involved in the
implementation of new
technology/techniques.
Interview of personnel and
stakeholders regarding the
following:
 Good social practices of
the company
 Response of the
management towards
social and environmental
concerns of the
stakeholders.
 Improvement plans that
have benefitted the
stakeholders.
4.2 Transparency

4.2.1 Transparency 4.2.1.1 The management shall Major  Requests, responses and  Records of requests
of information communicate adequate release of information must and responses.
and documents information to other be recorded (refer to  Land titles/user
relevant to stakeholder on 4.2.2.3). rights.
MSPO environmental, social and  Assessment of internal  Safety and health
requirements legal issues relevant to documents. plans.
sustainable practices in the  Plans and impact
relevant languages and assessments relating
forms. to environmental and
social impact.
 Plans for pollution
prevention.
 Records of
complaints and
grievances.
 Plans for continuous
improvement.
4.2.1.2 The management Major  For public listed companies  Annual reports.
documents shall be publicly the annual reports are the  Press release (if any)
available, except where this accepted primary public  Home page (if any)
is prevented by commercial documents.
confidentiality or where
disclosure of information
would result in negative
environmental or social
outcomes.

4.2.2.1 Procedures shall be Major  SOP.  SOP.
established for consultation  E.g. Enquiry Register Book  Consultation and
and communication with the to record request for communication
relevant stakeholders. information from relevant procedures
stakeholders. document.
 Assessment of internal  Appointment letter for
documents. person responsible
 Verify records for for MSPO matters.
appropriateness &  Records of requests
effectiveness of the actions and responses
taken/ follow up actions  Records of
required (if any). consultation and
communication
Interview with personnel and  List of internal and
stakeholders: external
 Awareness of stakeholders.
consultation and
communication
procedures.
 Availability of
management response
with regards to their
requests / complaints (if
applicable).
4.2.2.2 The management shall Minor  Discretion of the companies.  Appointment letters.
nominate management  Appointment letters.
officials at the operating unit
responsible for issues
related to indicator 1.

4.2.2.3 A list of stakeholders, Major  Verify records.  List of stakeholders.
records of all consultation  Lists of stakeholders:  Records of
and communication and  Communities in the area / consultation and
records of action taken in neighborhood. communication.
response to input from  Employees.  Records of action
stakeholders shall be taken.
properly maintained.
4.2.3 Traceability 4.2.3.1 The management shall Major Own Estate; Own Estate;
commit itself to implement  Weighbridge ticket - estate,  SOP.
and maintain the field.
requirements for the  Weighbridge ticket –
traceability and shall - To include pre and estate, field.
establish a standard post traceability.  To include pre and
operation procedure for - Sales agreement post traceability.
traceability. /undertakings
 Sales agreement
between estates and
/undertakings
mills.
between estates and
mills.
External supplier;
 Weighbridge ticket – External supplier;
licensed supplier.
 SOP
- To include pre and
 Weighbridge ticket –
post traceability.
licensed supplier.
 To include pre and
post traceability.

4.2.3.2 The management shall Major  Internal check on a regular  SOP on traceability.
conduct regular inspections basis as per SOP on  Internal audit report.
on compliance with the traceability.  Visual inspection of
established traceability  Internal audit. traceability
system.
 Assessment of internal procedures / handling
documents. at site.
 Records of sales,
 Visual inspection:
delivery notes or
 Checking of fresh fruit transportation of
bunches for crude palm oil, palm
identification. kernel.
 Letter of appointment
Note: Individual oil mills can of personnel in
develop their own traceability charge of traceability.
system documentation.
4.2.3.3 The management shall Minor  An executive to hold  Appointment letters.

identified and assign suitable ownership to maintain the  Training records.
employees to implement and implementation traceability
maintain traceability system. system.
 Training of employees.
4.2.3.4 Records of storage, sales, Major  Verify documents.  Records of storage.

delivery or transportation of  Hard or soft copies are  Record of sales.
crude palm oil and palm accepted.
kernel shall be maintained.  Records of delivery
and transportation of
CPO & PK.

4.3 Compliance to legal requirements
4.3.1 Regulatory 4.3.1.1 All operations shall be in Major  Verify compliance.  List of ratified
requirements compliance with applicable international law and
 MPOB to list down the
local, state, national and ratified International Law and applicable
ratified international laws Regulations applicable. regulations.
and regulations.  Legal Requirements
 Interview of personnel and
site management: Register.
 Letter of appointment
 Awareness of the for personnel in
applicable laws and charge of monitoring
regulations. compliance.
 Compliance with the  Updated permits and
applicable laws and licenses.
regulations and on-going
efforts of compliance.  Mechanism to track
changes or new
Assessment of internal amendments in law.
documents.
Visual inspection:
 Ability of site
management to
demonstrate compliance
of the relevant laws (e.g.
concerning storage of
scheduled waste, bulk
fuel storage).

4.3.1.2 The management shall list Major  Verify the following:  List of applicable
all relevant laws related to - List of applicable laws and regulations.
their operations in a legal laws and  List of relevant
requirements register. regulations. licenses, certificate of
- List of relevant fitness, etc.
licenses, certificate
of fitness, etc.
- Check on expiry
date.
4.3.1.3 The legal requirements Major  Verify the register  Legal Requirement
register shall be updated as  Legal Requirement Register Register (LRR).
and when there are any new (LRR)
amendments or any new
regulations coming into
force.
4.3.1.4 The management should Minor  Executive or appointed  Appointment letter.
assign a person responsible personnel to hold ownership
to monitor compliance and to to maintain the regulatory
track update the changes in requirements.
regulatory requirements.

4.3.2 Land use rights 4.3.2.1 The management shall Major  Verify land ownership or land  Sabah Syarat-syarat
ensure that their oil palm use rights: Nyata.
milling activities do not - Sabah Syarat-syarat  Sarawak - Land title,
diminish the land use rights Nyata. Provisional Lease
of other users. (PL), License for
- Sarawak - Land title,
Provisional Lease Planted Forest (LPF)
(PL), License for are acceptable.
Planted Forest (LPF)  Land title and terms
are acceptable. and conditions.
Verification of land use rights by  Provisional Lease
means of official/legal (PL) / License for
documents. The following Planted Forest (LPF)
documents are accepted: (for Sarawak).
 Land title and terms and  Lease Agreement.
conditions.  Quit rent paid by the
 Provisional Lease (PL) / holding company (if
License for Planted applicable).
Forest (LPF) (for  Perimeter survey map
Sarawak). containing boundary
 Lease Agreement. markers.
 Quit rent paid by the  Records of disputes
holding company (if and resolution
applicable). process.
 Perimeter survey map  Records of
containing boundary agreements/legal
markers. documents between
 Records of disputes and the previous owners
resolution process. and occupants.
 Records of
agreements/legal
documents between the
previous owners and
occupants.

Visual inspection:
 Legal perimeter
boundary markers.
4.3.2.2 The management shall Major  Verify land ownership or land  Land ownership or
provide documents showing use rights. land use rights.
legal ownership or lease,
history of land tenure and
the actual legal use of the
land.
4.3.2.3 Legal parameter boundary Major  Refer to estate titled land (PL
markers should be clearly or LPF) as some Mills are
demarcated and visibly inside estate titled land.
maintained on the ground  Site verification and verify
where practicable. record.
4.2.3.4 Where there are, or haven Minor  Verify record.  Records of disputes
been disputes, documented and resolution
proof of legal acquisition of process.
land and fair compensation  Records of previous
that have been or are being immediate owners
made to previous owners and occupants.
and occupants; shall made  Records of legal
available and that these documents
should have been accepted agreement between
with free prior informed two parties.
consent (FPIC).

4.3.3 Customary 4.3.3.1 Where lands are Major  Assessment of internal  Provisional Lease
land rights encumbered by customary documents. (PL) and License for
rights, the company shall Planted Forest (LPF).
demonstrate that these  Records of Ex-gratia /
rights are understood and Goodwill Payment
are not being threatened or and Agreement.
reduced.
 Provisional Lease
(PL) and License for
Planted Forest (LPF).
 Records of ex-
gratia/goodwill
payment and legal
agreement between
affected parties.
 Records of
negotiated
agreements between
the affected parties.
 Official maps of
recognized native
customary rights land
from state Land and
Surveys Department
(if applicable).
4.3.3.2 Maps of an appropriate Major  An official map from Land  Official maps from
scale showing extent of Survey for recognized Land Survey.
recognized customary rights customary rights is made
shall be made available. available.
 Verify record.
4.3.3.3 Negotiation and FPIC shall Major  Verify record.  Records of
be recorded and copies of negotiated
the relevant agreements agreements.
should be made available.
4.4 Social responsibility, health, safety and employment condition

4.4.1 Social Impact 4.4.1.1 Social impacts should be Minor  Verify the assessment  Social Impact
Assessment identified and plans should report. Assessment (SIA)
(SIA) be implemented to mitigate report.
 Feedback from local
the negative impacts and community.  A timetable with
promote the positive ones.
 Social impact assessment responsibilities for
can be conducted internally. mitigating the
 Assessment of internal negative impact is
documents. reviewed and
updated.
Note:  Action taken in
Identification of social impact response to the
may be carried out internally in recommendation of
consultation with the affected the assessment
parties. report & feedback
Oil mill management may have a from local
social impact on factors such as: community.
- Access and use rights.
- Economic livelihood and
working conditions.
- Subsistence activities.
- Cultural and religious
values.
- Health and education
facilities.
- Other community values,
resulting from changes
in improvement of
transport/communication
/influx of migrant labour
force.

4.4.2 Complaints and 4.4.2.1 A system for dealing with Major  Complaints and grievances  Complaints and
grievances complaints and grievances procedure: grievances
shall be established and - Establish a system procedure.
documented. to filter out irrelevant  Complaint forms for
complaint (not employees and
related to MSPO). affected
- Establish a system stakeholders.
to deal with it.  Records of
 Assessment of internal complaints and
documents. records of actions
 Interviews with personnel taken.
and stakeholders:  Records that are kept
 Awareness of complaints for the last 24
and grievances months.
procedures and how to
make complaints.
Verify if the complaints and
grievances by the affected
parties are resolved in an
effective, timely and appropriate
manner.
4.4.2.2 The system shall be able to Major  Acknowledgement of the  Complaints and
resolve dispute in an decision by both parties. grievances
effective, timely and procedure.
appropriate manner, which is
accepted by all parties.
4.4.2.3 A complaint form should be Minor  Verify availability of  Complaint forms for
made available at the complaint forms. employees and
premises, where employees affected
and affected stakeholders stakeholders.
can make complaints.

4.4.2.4 Employees and surrounding Minor  Notice board to inform all  Complaint forms for
communities should be concerned about the employees and
made aware of its existence availability of complaints affected
and that complaints or form and the drop boxes. stakeholders.
suggestions may be made at
any time.
4.4.2.5 Complaints and solutions Major  Verify the document and  Records of
within the past 24 months check those not resolved in complaints and
shall be documented and be 24 months. records of actions
made available to affected taken.
stakeholders upon request.
4.4.3 Commitment to 4.4.3.1 Palm oil miller should Minor  Documented evidence of  Documented
contribute to contribute to local positive contribution to the evidence of positive
local development in consultation
sustainable community. contribution to the
with the local communities.
development  Joint activities carried out community.
Where the mill is an integral
part of plantation, such with estates are accepted.  Records of CSR
contribution to local activities.
 Assessment of internal
community development
may be regarded as a joint documents.  Records of meetings
effort by the mill and the with stakeholders and
plantation. identification of local
community
development needs.
4.4.4 Employees 4.4.4.1 An occupational safety and Major  Verify document and assess  An occupational
safety and health policy and plan which the implementation. safety and health
health is in line with Occupational policy and plan.
Safety and Health Act 1994
and Factories and
Machinery Act 1967 (Act
139) shall be documented,
effectively communicated
and implemented.

4.4.4.2 The occupational safety and Major  Occupational Safety
health plan should cover the and Health Policy.
following:  Records of OSH
a) A safety and health Committee Meetings,
a) Compliance with 4.4.4.1. agenda, minutes,
policy, which is
communicated and attendance list.
implemented.  Manuals or
procedures
b) The risk of all operations b) Verify risk assessment report concerning health
shall be assessed and e.g. HIRARC. and safety.
documented.
 Safety risk
c) An awareness and c) Verify training records: assessments and
training programme their controls
which includes the (periodically
following requirements reviewed).
for employees exposed  Annual training
to chemicals used at the programme on safety
palm oil mill: aspects e.g. First Aid
Training, records of
i. Safe working practice. training attendance.
i. All employees
involved are  PPE issuance and
adequately replacement record.
trained on safe  Accident and
working emergency response
practices; procedures.
ii. MSDS of chemicals used  Records of accidents
ii. All precautions (products refers to chemicals
attached to and investigations
used at palm oil mill). reports.
products should
be properly  Internal audit reports
observed and concerning safety
applied; aspects, possible
occurrence of non-
conformities, reports
on action plan and
implementation.

d) The management shall d) Visual observation and  Evidence of
provide the appropriate verification of records. qualification of
PPE at the place of work personnel in charge
to cover all potentially of safety and health.
hazardous operations as
identified in the risk
assessment and control
such as Hazard
Identification, Risk
Assessment and Risk
Control (HIRARC).
e) Verify SOP (Check on the

e) The management shall compliance to CHRA
establish Standard requirement and Chemical
Operating Procedure for Register requirement – this
handling of chemicals to should applies to both
ensure proper and safe estates and mills.
handling and storage in
accordance to
Occupational Safety
Health (Classification
Packaging and Labeling)
Regulation 1997
Occupational Safety
Health (Use and
Standard of Exposure of
Chemical Hazardous to
Health) Regulation 2000.

f) The management shall f) Responsible person(s) for
appoint responsible workers’ health, safety and
person(s) for workers’ social aspects.
safety and health. The
appointed person(s) of
trust shall have
knowledge and access
to latest national
regulations and
collective agreements.
g) The management shall g) Verify minutes of meetings.

conduct regular two-way (Follow estates guidelines)
communication with their
employees where issues
that affect their business
such as those related to
employees’ safety,
health and welfare are
discussed openly.
Records from such
meeting shall be kept
ant the concerns of
employees and any
remedial actions taken
shall be recorded.
h) Accident and emergency h) Verify documented

procedures shall exist procedures and random
and instructions shall be interview with employees.
clearly understood by all i. Emergency shower
employees. and eye wash to be
provided in the lab.

i) Employees trained in i) Verify training records and
First Aid shall be present check availability of First Aid
at all mill operations. equipment particularly in the
First Aid equipment workshop, lab, supervisor’s
should be available at office and the general office.
each worksite.
Visual inspection:
 First aid kits, emergency
equipment, personal
protective equipment
(PPE), Emergency
shower and eye wash to
be provided at the lab.
 Danger/warning
signages, safety
instructions,
MSDS/CSDS,
emergency actions
 Availability of PPE
storage facility
j) Records shall be kept of j) Verify records.

all accidents and be
reviewed periodically at  Review during OSH
quarterly intervals. Committee meeting
Visual inspection and

assessment of internal
documents:
 Occupational Safety and
Health Policy.

 Records of OSH
Committee Meetings,
agenda, minutes,
attendance list.
 Manuals or procedures
concerning health and
safety.
 Safety risk assessments
and their controls
(periodically reviewed).
 Annual training
programme on safety
aspects e.g. First Aid.
 Training, records of
training attendance.
 PPE issuance and
replacement record.
 Accident and emergency
response procedures.
 Records of accidents
and investigations
reports.
 Internal audit reports
concerning.
 safety aspects, possibly
occurred non
conformities, reports on
action plan and
implementation.
 Warning signs installed
in all areas with
assessed risks.

 Evidence of qualification
of personnel in charge of
safety and health.
Interview personnel regarding

the following:
 Knowledge of
occupational safety and
health policy and
implementation.
 Knowledge of job risks
and controls.
 Knowledge of accident
plans, emergency plans,
and use of emergency
equipments.
 Use of personal
protective equipment,
cleaning and storage.
 Knowledge of danger
and warning signs,
safety instructions and
emergency actions.
Visual inspection:
 First aid kits, emergency
equipment, personal
protective equipment
(PPE), emergency
shower and eye wash to
be provided at the lab.

 Danger/warning
signages, safety
instructions,
MSDS/CSDS,
emergency actions.
 Availability of PPE
storage facility.
4.4.5 Employment 4.4.5.1 The management shall Major  Verify policy signed by top  Policy on good social
conditions establish a policy on good management and practice.
social practice regarding communicated in any way.
human rights in respect of  Displayed at Mills’ general
industrial harmony. The notice board.
policy shall be signed by the
top management and
communicated to the
employees.
4.4.5.2 The management shall not Major  Random feedback from
engage in or support employees on any
discriminatory practices and discriminatory practices.
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 Management shall ensure Major  Check collective agreements  Collective
that employees’ pay and and verify compliance with agreements.
conditions meet legal or legal requirements on
industry minimum standards minimum wage.
as per 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 Management should ensure Minor  Letter confirming compliance  Records of
employees of contractors signed by the contactor. payments.
are paid based on legal or (including records of  Contractor’s
industry minimum standards payments) agreement.
according to the employment  Check the contractor’s
contract agreed between the agreement and compliance
contractor and his employee. to it.
4.4.5.5 The management shall Major  Verify records. (To adopt  Overview records of
establish records that MSPO part 3 guides) all employees.
provide an accurate  Refer to employee register.
overview 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 All employees shall be Major  Verify records.  Appointment letter for
provided with fair contracts local workers /
 Appointment letter for local workers registration
that have been signed by workers / workers
both employee and form.
registration form.
employer. A copy of  Employment contract
 Employment contract for for foreign workers.
employment contract shall
foreign workers.
be made available for each  Any document
 Any document related to related to
and every employee
employment is acceptable. employment is
indicated in the employment
records.  Employee register. acceptable.
 Employee register.
4.4.5.7 The management shall Major  Verify records.  Check roll records.
establish a time recording  Checkroll records.
system that makes working
hours and overtime  Display of working hours at
transparent for both the the Mill’s general notice
employees and employers. board.
4.4.5.8 The working hours and Major  Verify records.  Pre-approved

breaks of the individual  Leave entitlement can be overtime sheet.
worker indicated in the time taken as evidence of  Signed policy on
records shall comply with compliance. good social practices
legal regulations and e.g. People Policy,
collective agreements.  Pre-approved overtime
sheet. Employment & Labor
Overtime shall be mutually Policy, and Sexual
agreed upon and shall meet Harassment Policy.
the legal requirements Visual inspection and  Guidelines on
applicable. assessment of internal prevention of sexual
documents: harassment at the
workplace.

 Availability of signed policy  Employment contract
on good social practices e.g. for workers.
People Policy, Employment  Records of registered
& Labor Policy, Sexual employees for
Harassment Policy. compliance with
 Guidelines on prevention of minimum age for
sexual harassment at the employment.
workplace.  Records of
 Employment contract for CSR/social
workers. contributions.
 Records of registered  Complaint forms,
employees for compliance records of complaints
with minimum age for and actions taken to
employment. resolve them.
 Compliance to minimum
wage policy and records to
show no discrimination in
terms of payments of daily
wages to workers, records of
payments, pay slip available
and given to workers.
 Display of working hours at
office notice board.
 Temporary housing and
amenities acknowledged by
Jabatan Tenaga Kerja and
local authorities are
acceptable.
 Records of social
contributions.
 Availability of complaint
forms, records of complaints
and actions taken to resolve
them.

4.4.5.9 Wages and overtime Major  Verify records.  Check rolls records.
payment documented on the  Records from check roll the
pay slips shall be in line with source documents for pay
legal regulations and slip.
collective agreements.
4.4.5.10 Other forms of social Minor  Verify records.
benefits should be offered by  Interview employees.
the employer to employees,
their families or community
such as incentives for good
work performance, bonus
payment, support of
professional development,
medical care provisions and
improvement of social
surroundings.
4.4.5.11 In cases where on-site living Major  On-site verification.
quarters are provided, these  Interview.
quarters shall be habitable
and have basic amenities
and facilities.

4.4.5.12 The management shall Major  Verify policy.  Check rolls records.
establish a policy to prevent  Refer overall Check roll
all forms of sexual records.
harassment and violence at
the workplace.
4.4.5.13 The management shall Major  Check for compliance. 

respect the right of all Conduct random interview
employees to form and join with employees.
trade union and allow  Foreign workers to follow
workers’ own National and/or State
representative(s) to facilitate Immigration Act.
collective bargain in
accordance with applicable Interview with
laws and regulations. personnel/employees:
Employees shall be given  Knowledge of policies
freedom to join trade unions concerning good social
relevant to the industry or practices such as no
organize themselves for discrimination, no forced
collective bargaining. labour etc.
Employees shall have the  Knowledge of basic
right to organize and principles regarding equality
negotiate their work and non-discrimination.
conditions. Employees  Compliance with laws and
exercising this right should regulations with regards to
not be discriminated against employment, labour rights,
or suffer repercussions. immigrations requirements.
 Compliance with Collective
Agreements.
 Knowledge of employment
contracts and its contents.
Visual inspection:
 Workers housing and
amenities.

4.4.5.14 Children and young persons Major  Verify records and on-site  Employees register.
shall not be employed or inspection.
exploited. The minimum age
shall comply with local, state
and national legislation.
4.4.6 Training and 4.4.6.1 All employees and Major  Verify records.  Training programmes
competency contractors shall be and records such as
 Contractors shall mean attendance lists,
appropriately trained. A contract employees in this
training programme shall photos, trainer and
indicator. training contents.
include regular assessment
of training needs and Assessment of internal  Training needs
documentation, including documents: analysis/matrix for
records of training.  Training programmes and each operation/task.
records such as attendance
lists, photos, trainer and
training contents.
 Training needs
analysis/matrix for each
operation/task.
 Appropriateness of training
programme based on
workers’ competency.
 Note: Contractors are
contract employees.
4.4.6.2 Training needs of individual Major  Verify records:  Training needs
employees shall be identified - Training needs analysis. analysis.
prior to the planning and  Training records.
implementation of the - Training records.
training programmes in order
to provide the specific skill
and competency required to
all employees based on their
job description.

4.4.6.3 A continuous training Minor  Verify relevant records.  Training programme.
programme shall 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.
4.5 Environment, natural resources, biodiversity and ecosystem services

4.5.1 Environmental 4.5.1.1 An environmental policy and Major  Verify document and assess  Environmental
management management plan shall be in the implementation. management plan.
plan line with the relevant country Assessment of internal  Continual
and state environmental documents: improvement
laws shall be established,  Availability of signed programme.
effectively communicated environmental policy  Awareness and
and implemented. concerning management and training programme
protection of the environment on environmental
according to the applicable management and
laws. improvement plan,
 Environmental management minutes of meeting,
plan which was developed attendance list,
from results of aspect and photos.
impacts analysis, mitigation
and monitoring plan and
records of implementation
and timeline.
 Continual improvement
programme.

 Awareness and training
programme on
environmental management
and improvement plan,
minutes of meeting,
attendance list, photos.
Interview of personnel and

stakeholders regarding the
following:
 Knowledge of
environmental policy and
efforts to protect the
environment e.g
compliance to applicable
laws.
4.5.1.2 The environmental Major  Environmental policy
management plan shall and objectives.
cover the following:  Environmental
a) Compliance with existing
a) An environmental policy regulatory requirements. Aspect Impact
and objectives; assessment report.
b) The aspects and
b) Environmental Aspect
impacts analysis of all
Impact (EAI).
operations.
4.5.1.3 An environmental Major  Verify plan.  Environmental
improvement plan to mitigate improvement plan.
the negative impacts and to
promote the positive ones,
shall be developed,
implemented and monitored.

4.5.1.4 A programme to promote the Minor  Verify programme or action  Continual
positive impacts should be plan. improvement plan.
included in the continual
improvement plan.
4.5.1.5 An awareness and training Major  Verify records.  Records of training.

programme shall be  Records of training.
established and
implemented to ensure that
employees understand the
policy, objectives and
management plans and are
working towards achieving
objectives.
4.5.1.6 The management shall Major  Check for minutes of  Minutes of the
organize regular meetings meetings meeting.
with workers where
concerns of workers about
the environmental quality are
discussed.

4.5.2 Efficiency of 4.5.2.1 Consumption of non- Major  Non-renewable energy  Records of non-
energy use and renewable energy shall be consumption/usage (per renewable energy
use of optimized and closely tonne FFB) records and data consumption with
renewable monitored by establishing shall be documented. baseline values
energy baseline values and trends observed for 3-5
 Baseline value shall be
shall be observed within established based on the years.
appropriate timeframe. suitable timeframe decided  Energy optimization
There should be a plan to by management. plan.
assess the usage of non-
renewable energy including  Comparison to be made  Records of
fossil fuel, electricity in the based on per tonne FFB renewable energy
operations over the base processed. produced.
period.  Energy optimization plan
shall be made available.
documents:
 Availability of monitoring
records of consumption of
non-renewable energy with
baseline values observed for
3-5 years.
 Comparison to be made
based on per ton FFB
processed.
 Energy optimization plan
shall be made available.
 Documentation of renewable
energy produced.

Visual inspection of:
 Any application/new
techniques/technology using
renewable energy e.g use of
biodiesel in transport, use of
solar energy etc.
4.5.2.2 Palm oil millers shall Major  Per tonne FFB.  Records of non-
estimate the direct usage of  Contractor: Not applicable to renewable energy
non-renewable energy for palm oil mill consumption.
their operations, including
fossil fuel, and electricity to (some Mills engaged
determine energy efficiency Contractor(s) to “clear their
of their operations. FFB”, transport CPO to the
refinery etc).
4.5.2.3 The use of renewable Minor  Documentation of renewable  Records of
energy should be applied energy produced (kW.hr). renewable energy
where possible. produced (kW.hr).
4.5.3 Waste 4.5.3.1 All waste products and Major  Identify any waste product  Identification of all
management sources of pollution shall be and its waste products and
and disposal identified and documented. management/disposal. polluting activities
(e.g scheduled
&domestic wastes),
documents:
source of pollution
 Identification of all waste (e.g POME).
products and polluting
activities (e.g scheduled
&domestic wastes), source
of pollution (e.g POME).

 Procedures/management  Procedures/manage
plan developed from waste ment plan developed
identification according to from waste
their appropriateness and identification
effectiveness, monitoring of according to their
implementation plan. appropriateness and
 Records/documentation on effectiveness,
recycling programme. monitoring of
 Standard Operating implementation plan.
Procedure for handling of  Records/documentati
used chemicals in on on recycling
accordance with regulations. programme.
 Location map of rubbish  Standard Operating
pit/landfill. Procedure for
handling of used
chemicals in
Visual inspection of: accordance with
 Schedule & method of regulations.
domestic waste disposal.  Location map of
rubbish pit/landfill.
4.5.3.2 A waste management plan Major  Documentation of action  Waste management
shall be developed and plan. plan.
implemented, to avoid or  Reduce, reuse and recycle  Records of disposal.
reduce pollution. The waste to minimize waste.
management plan should
 Management of major waste
include measure for:
stream, ie. EFB, POME etc.
a) Identifying and which is important to be
monitoring sources of utilized and monitor its
waste and pollution. usage.
b) Improving the efficiency  Verify document on disposal
and recycling potential of of hazardous material.
mill by-products by
converting them into
value-added products.

4.5.3.3 The palm oil mill Major  Verify SOP.  SOP for handling of
management shall establish used chemicals.
Standard Operating
Procedure for handling of
used chemicals that are
classified under
Environmental Quality
Regulations (Scheduled
Waste) 2005, Environmental
Quality Act, 1974 to ensure
proper and safe handling,
storage and disposal.
Scheduled waste shall be
disposed as per
Environmental Quality Act
1974 (Scheduled Waste)
Regulations, 2005.
4.5.3.4 Domestic waste should be Minor  Onsite inspection and  Records of disposal.
disposed as such to verification.
minimize the risk of  Designated area.
contamination of the
environment and
watercourse.

4.5.4 Reduction of 4.5.4.1 An assessment of all Major  Identify other solid  Assessment report.
pollution and polluting activities shall be waste.
emission  Management plan.
conducted, including  Refers to DOE report.
including greenhouse gas emissions,  DOE reports.
greenhouse particulate and soot  Verify assessment report
gas emissions, scheduled (refer to MPOB for
wastes, solid wastes and calculations; excluding
effluent. CO2 from renewable
energy resources).
 The relevant GHG are
CO2 (derived from non-
renewable resources)
and CH4 only.
documents:
 Identification of all waste
products and polluting
activities (e.g. scheduled
&, domestic wastes),
source of pollution (e.g.
POME, black smoke).
 Procedures/managemen
t plan developed from
waste identification,
monitoring of
implementation of plan.
 Refer to 4.5.3.1, 4.5.3.2,
4.5.7
 Reports submitted to the
Department of
Environment (DOE).

 Verify assessment report 
(refer to MPOB for
calculations; excluding
CO2 from renewable
energy resources)
 The relevant GHG are
CO2 (derived from non-
renewable resources)
and CH4 only.
Visual inspection:
 Evidence of zero
burning.
4.5.4.2 An action plan to reduce Major  Verify the action plan.  Action plan.
identified significant
pollutants and emissions
shall be established and
implemented.
4.5.4.3 Palm oil mill effluent (POME) Major  Verify the compliance  Records of POME
shall be treated to ensure according to the conditions in treatment.
compliance with standards approved license.  Records of effluent.
as stipulated in the relevant  Latest national and/or state
Environmental Quality regulations on POME
(Prescribed Premises) discharge quality.
(Crude Palm Oil)
Regulations 1977. POME
discharge limits and method
should be in accordance
with the respective state and
national policies and
regulations.

4.5.5 Natural water 4.5.5.1 The management shall Major  Establishment of water  Water management
resources establish water management management plan. plan.
plans to maintain the quality  DOE reports.
and availability of natural
water resources (surface Assessment of internal
and ground water). The documents:
water management plan a) Verify the water usage:
may include:
a) Assessment of water  Recommended water to
usage and sources. FFB ratio 1.35 excluding
domestic usage (for the
b) Monitoring of outgoing standard mill).
water which may have
negative impacts into the Verify the incoming meter
natural waterways at a consumption for the mill
frequency that reflects and domestic usage only.
the mill’s current b) Verify record submitted to
activities. DOE (effluent)
c) Ways to optimize water c) Observation of water
and nutrient usage and wastage:
reduce wastage (e.g.  Efforts made to reduce,
having in place systems reuse and recycle
for re-use, night
application, maintenance
of equipment to reduce
leakage, collection of
rainwater, etc.).

4.5.5.2 Where open discharge of Major  Effort made to reduce, reuse  Action plan to reduce
POME into water course is and recycle the discharge of
practiced, mills should  Evidence or action plan on POME.
undertake to gradually effort made in reducing the
phase it out in accordance to discharge of treated POME
the applicable state or into water course
national regulations.
 Verify record submitted to
DOE (effluent)
4.6 Best Practices

4.6.1 Mill 4.6.1.1 Standard operating Major  Verify the SOP.  Standard operating
management procedures shall be procedures on best
appropriately documented documents: management
and consistently practices.
implemented and monitored.  Standard operating
procedures on best
management practices.
Visual inspection concerning:
 Oil mill operation.
4.6.1.2 All palm oil mills shall Major  Inspection of operation and  CoP / GMP audit
implement best practices. documentation. reports.

4.6.2 Economic and 4.6.2.1 A documented business or Major  Verify business and  Business and
financial management plan shall be management plan: management plan.
viability plan established to demonstrate i. Budget
attention to economic and
financial viability through ii. Book keeping
long-term management Assessment of internal
planning. documents:
 Business or management
plan which includes
operational plan for at least 2
years projection.
 Review of business plan for
the last 2 years’
performance.
4.6.3 Transparent 4.6.3.1 Pricing mechanisms for the Major  Documentation of the pricing  Monthly oil mill
and fair price products and other services mechanisms. account.
dealing shall be documented and Assessment of internal  Sales and purchase
effectively implemented documents: agreements.
 Monthly oil mill accounts.  Services contract.
 Sales and purchase
agreements and/or contract,  Pricing mechanism.
service contract, credit
terms.
 Evidence of timely payment.
 Documentation of pricing
mechanism.
 Methodology in promoting
transparency under this
indicator.

4.6.3.2 All contracts shall be fair, Major  Verify contract terms and its  Sales Contract.
legal and transparent and execution in accordance to  Purchase contract.
agreed payments shall be ethical standard:
made in timely manner.  Services contract.
- Sales contract.
- Purchase contract.
- Service contract.
4.6.4 Contractor 4.6.4.1 In case of the engagement Major  Awareness of MSPO  Contract agreement.
of contractors, they shall be requirements:  Work completion
made to understand the - Written communications. certificate.
MSPO requirements and
shall provide the required - Acceptance of the terms.  Payment report.
documentation and Assessment of internal
information. documents:
 Contract agreement shall
include a special clause on
MSPO compliance where
applicable to them.
 Work completion certificate
or evidence of progress
payment reports.
Interview of contractors
regarding the following:
 Awareness on MSPO and
requirements.
4.6.4.2 The management shall Major  Verify agreed contracts.  Contractor

provide evidence of agreed agreement.
contracts with the contractor.

4.6.4.3 The management shall Minor  Management to cooperate  Approved letter for
accept MSPO approved with appointed accredited the acceptance of
auditors to verify the MSPO auditors. MSPO auditor.
assessments through a
physical inspection, if
required.

ACKNOWLEDGEMENTS
Members of National Committee for MSPO
Malaysian Palm Oil Board

Felda Agricultural Services Sdn Bhd
Genting Plantations Berhad
IOI Corporation
KLK Oleo
Malayan Edible Oil Manufacturers’ Association
Malaysian Estate Owners Association
Malaysian Oil Palm Nurseries Association
Malaysian Palm Oil Association
Malaysian Palm Oil Council
Malaysian Timber Certification Council
National Association of Smallholders
Palm Oil Refiners Association of Malaysia
Sarawak Oil Palm Plantation Owners Association
Sime Darby Plantation Sdn Bhd
SIRIM Berhad
East Malaysia Planters’ Association
Palm Oil Millers Association
Tradewinds Plantation Berhad
United Plantations Berhad

Members of Technical Working Committee for MSPO
Malaysian Palm Oil Board

Applied Agricultural Research Sdn Bhd
Boustead Estate Agency Berhad
EPA Management Sdn Bhd
Felda Agricultural Services Sdn Bhd
Felda Holdings Berhad
Felda Palm Industries Sdn Bhd
Genting Plantations Berhad
IOI Corporation
Kulim Berhad
Malayan Edible Oil Manufacturers’ Association
Malaysian Biodiesel Association
Malaysian Estate Owners Association
Malaysian Oleochemical Manufacturers Group
Malaysian Palm Oil Association
Malaysian Palm Oil Council
Malaysian Oil Palm Nurseries Association
National Association of Smallholders
Palm Oil Refiners Association of Malaysia
Sarawak Oil Palm Plantation Owners Association
Sime Darby Plantation Sdn Bhd
SIRIM Berhad
East Malaysia Planters’ Association
Palm Oil Millers Association
United Plantations Berhad

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LEMBAGA MINYAK SAWIT MALAYSIA

(MALAYSIAN PALM OIL BOARD)

MALAYSIAN SUSTAINABLE PALM OIL (MSPO)

MS 2530-4:2013 GENERAL PRINCIPLES FOR PALM OIL MILLS

MSPO Clauses Indicators Major / Minor Guidelines Supporting document

 Interview of personnel and

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4.2.3.3 The management shall Minor  An executive to hold  Appointment letters.

4.2.3.4 Records of storage, sales, Major  Verify documents.  Records of storage.

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e) Verify SOP (Check on the

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g) The management shall g) Verify minutes of meetings.

h) Accident and emergency h) Verify documented

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j) Records shall be kept of j) Verify records.

Visual inspection and

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Interview personnel regarding

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4.4.5.8 The working hours and Major  Verify records.  Pre-approved

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4.4.5.13 The management shall Major  Check for compliance. 

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4.5 Environment, natural resources, biodiversity and ecosystem services

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Interview of personnel and

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4.5.1.5 An awareness and training Major  Verify records.  Records of training.

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4.6 Best Practices

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4.6.4.2 The management shall Major  Verify agreed contracts.  Contractor