Kulim - Roundtable on Sustainable Palm Oil

RSPO Annual Communication of Progress
(Revised 1 August 2006)
1. Profile
Name of organization : <strong>Kulim</strong> (Malaysia) Berhad
Membership type
(Ordinary/Affiliate)
Report prepared by : Azmariah Muhamed email: azmariah@kulim.com.my
Report submitted by : Ong Kim Pin email: ongkimpin@kulim.com.my
Reporting Period
: _July 2005____________ to ___June 2006__________ (12-month period)
Date of Report : 10 Oct 2006
2. Details of Progress
Please provide a brief summary of progress achieved during this reporting period. The following items
may be useful to include in your progress report. Please submit your report based on the following
headings; you may leave blank, sections that are irrelevant to your organization:
A. Current efforts and progress in producing, procuring and/or utilizing sustainable palm oil
<strong>Kulim</strong> (M) Berhad (<strong>Kulim</strong>) had volunteered to test out the RSPO’s Principles and
Criteria (P&C) in RT3. Two estates and two mills were selected for the 2-year trial.
Apart from <strong>Kulim</strong>’s commitment to RSPO’s objectives on sustainability, Ladang
Sedenak which had been certified with ISO 14001 in October 2004, had successfully
been accredited with EMS ISO 14001:2004 in March 2006. Besides, <strong>Kulim</strong> is
continuously adopting environmentally sustainable practices such as zero burning,
planting leguminous cover crop, adopting integrated pest management (IPM) and
utilization of by-product such as bio-compost in all estates
B. Implementation and/or sponsorship of projects/initiatives that promote sustainable palm oil
<strong>Kulim</strong> (M) Berhad is one of the active members of RSPO Criteria Working Group
(CWG). Series of road show and awareness programmes on RSPO P&C had been
carried out for all estate and mill managers to raise their awareness on the current
palm oil industry progress in achieving sustainable palm oil production. Self-
Assessment Survey and RSPO Field Survey had been conducted in all estates and
mills in order to provide feedback to RSPO Secretariat as well as MPOA on the P&C
trial implementation. Moreover, <strong>Kulim</strong> has also extended the use of its by-product by
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constructing 3 more bio-compost plants to maximize the use of POME and EFB as
well as continuing its efforts in adopting good agriculture practices in plantation
management. In tandem, <strong>Kulim</strong>’s associated company, Asiagreen Environmental Sdn
Bhd had organized a seminar on “Available Technology to achieve ‘Zero’
Discharge/20ppm BOD Water Course Discharge of Treated POME” in Kuala Lumpur
on 3rd April 2006 as an initiative to promote sustainable palm oil.
C. Significant economic, social or environmental problems encountered in production, procurement
and/or use of sustainable palm oil and efforts made to mitigate or resolve them
The ever increasing crude oil fuel prices coupled with <strong>Kulim</strong>’s determination to
promote sustainable palm oil has led <strong>Kulim</strong> to introduce the use of bio-fuel which uses
up to 80% olein and 20% additive. The project currently on trial in few of <strong>Kulim</strong>’s
estates is progressing well. On the other hand, <strong>Kulim</strong> had entered into a joint venture
with Peter Cremer to produce 200,000 TPA bio-diesel from its 2 plants in Tanjung
Langsat, Johor and Jurong, Singapore. The production is expected to commence in
July 2007.
D. Outlook of planned activities to promote sustainable palm oil production, promotion and/or use in
the next reporting period
<strong>Kulim</strong> (M) Berhad is interested in testing out Criteria 5.1 and 6.1. <strong>Kulim</strong> is looking for
funds and expertise together with RSPO Secretariat to start these projects.
Meanwhile, <strong>Kulim</strong> is in the process of preparing documentation for possible RSPO
auditing for estates and mills which are involved in P&C trial implementation. Another
two estates and one mill under <strong>Kulim</strong>’s management are in the process of MS ISO
14001: 2004 certification by the end of 2006.
E. Recent publications of environmental / social / sustainability reports or annual reports relating to the
objectives and tasks of RSPO
1. <strong>Kulim</strong> Annual Report 2005 (released June 2006)
2. “Benefits of Compost to the Estate Environment”, a paper presented in the seminar
on “Available Technology to achieve ‘Zero’ Discharge/20ppm BOD Water Course
Discharge of Treated POME” organized by Asiagreen Environmental Sdn Bhd. on 3
April 2006.
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F. Recognition and awards for excellence in promoting sustainable palm oil
One of <strong>Kulim</strong>’s operating units, Ulu Tiram Central Laboratory (UTCL) which provides
chemical analysis to all estates and mills had been accredited with MS ISO/IEC 17025
(competency of testing and calibration laboratories) in October 2005. Another <strong>Kulim</strong>’s
subsidiary, Natural Oleochemicals Sdn. Bhd, had obtained Halal certificate of
authentication from Jabatan Kemajuan Islam Malaysia (JAKIM) and MS ISO
18001:1999 in September and December 2005 respectively.
G. Suggestions on how the RSPO can play an active role in enhancing your organization’s
sustainability performance, particularly in relation to promoting sustainable palm oil
RSPO could help in sourcing and funding some of the core expertise such as
sociologists, botanists, zoologists and extension specialists in designing project
proposals together with producers especially for Criteria 5.1, 6.1 and 7.3. We hope to
produce a set of template for RSPO P&C implementation.
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