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Introduction

If sustainable development means development that meets the needs of the present without compromising the ability of future generations to meet their own needs, sustainability is simply fulfilling the social and economic requirements of present and future generations in harmony with the nature. Hence maintaining a good balance between meeting the needs for survival and well-being AND preserving the nature of the planet Earth becomes the ultimate delicate task.

Tian Siang Holding vows to conduct her business activities in a way that is in harmony with the environment for sustainable growth. As a responsible oil palm grower and palm oil miller, we are committed to good agricultural and milling practices for the production of oil palm and palm oil. Our commitment to the principles of Roundtable Sustainable Palm Oil provides a good avenue in pursuit of sustainable business operations.

Roundtable Sustainable Palm Oil or RSPO

RSPO is a non profit organization instituted to promote the production, procurement and use of sustainable palm oil. The Principles & Criteria and specific national indicators form the key drivers that stipulate all sustainable practices in the oil palm and palm oil industry.

There are 8 Principles, 39 Criteria and 123 Specific National Indicators entail all the essential guidelines and required in the production of sustainable oil palm products.

The eight principles are:

  1. Commitment to Transparency
  2. Compliance with Applicable Laws and Regulations
  3. Commitment to Long – Term Economic and Financial Viability
  4. Use of appropriate Best Practices by Growers and Millers
  5. Environmental Responsibility and Conservation of Natural Resources and Biodiversity
  6. Responsible Consideration of Employees and of Individuals and Communities by Growers and Millers
  7. Responsible Development of New Plantings
  8. Commitment to Continuous Improvement in Key Areas of Activity

RSPO Certification process requires that the business operations comply and conform to the P&C and indicators.

Tian Siang Holdings S/B ( TSHSB) and sustainable palm oil

As an aspiring RSPO member, TSHSB is working with great enthusiasm towards certification. Sustainable policies, environmental friendly projects and social enhancement programs are implemented in her business operations and corporate activities.

  1. RSPO Certification

    TSH has appointed SIRIM QAS International Sdn Bhd (SIRIM QAS) to conduct a pre-assessment or gap analysis for Malaysian National Interpretation (MY-NI) RSPO Principles and Criteria (2007) and RSPO Supply Chain Certification Standard (25 November 2011) at one of its operating units in Kinabatangan, Sandakan, Sabah. The main objective of the pre-assessment was to determine the readiness and preparing TSHSB for the main certification against the RSPO Principles & Criteria MY-NI.

    The pre assessment concluded that:

    • The operating unit has fulfilled some of the standard requirements BUT not fully as required for the main certification assessment.
    • The operating unit nevertheless, has the capability and capacity to fulfil all the requirements stated in the RSPO Principles & Criteria MY-NI and RSPO Supply Chain Certification Standard

  2. Projects-Environmental Friendly

    • Compost Project

      A fully operational Composting Plant is built in Tian Siang Oil Mill to convert the Empty Fruit Bunches or EFB and Palm Oil Mill Effluent or POME into organic compost which is a good soil conditioner. Working in complementary to chemical fertilizer, the organic compost helps to retain the soil fertility with reduced chemical fertilizer usage and at the same time avoid emission of methane gas from the POME other-wised. The later contributes positively in the mitigation of global warming due to methane emission which is a Green House Gas or GHG with global warming potential 21 times that of CO2.

    • Biogas Projects

      Methane gas emission has adverse global warming impacts due its high global warming penitential. POME from the milling process under the traditional treatment system fails to address the emission of the GHG. The Biogas Project employs an effective methodology whereby the biogas from the POME is captured and utilized as fuel for generation of renewable electricity. The avoidance of methane emission coupled with production of renewable power using the gas as fuel becomes a 2 pronged strategy in the mitigation of global warming.

      Biogas Projects have been successfully implemented both in TSOMPK and TSOMAK in 2010 and 2012 respectively.

    • Long EFB Fibre Project

      Conversion of Empty Fruit Bunches or EFB into long fibre has successfully exploited the commercial values of the biomass. In substituting the coconut fibre, it has found its niche market as raw material for the making of mattress.

      Using the renewable energy from the biogas plants, the long fibre plants have been implemented in both TSOMPK and TSOMAK.

  3. Good Agricultural Practices

    • Zero burning

      No open burning is allowed to take place in estate premised in tandem with group agricultural policy.

    • Soil fertility

      Consultant or professional personal shall be hired to conduct soil profile study, and the result will be taken as a benchmark on planning estate manuring program. Application of fertilizers at appropriate moments and in adequate doses is being practised.

    • Erosion

      No steep slope area is planted and vegetative growth is kept to protect soil surface from erosion. Reducing erosion by wind and water is effected through hedging and ditching. Maintain permanent soil covering (Legume Cover Crop) also vital in controlling soil erosion.

    • Peat soil

      Estate management is practising scheduled irrigation through water management plan, by monitoring of oil palm trees needs and soil water reserve status to avoid water loss by drainage. Water table is managed carefully by limiting heavy output of water through water management team.

    • Pest control

      Integrated Pest Management (IPM) is intensively practised by planting variety of beneficial plants that provide a good breeding site for predators. Barn Owl is mostly used to control rat population. If control on chemicals application is required, strict compliance to the Estate P&D Control procedure is observed.

    • Eco-system

      Estate operations believe that the `Eco-System’ is controlled both by external and internal factors. As a responsible oil palm producer, we strive to enhance environmental quality and natural resource base upon which the agricultural economy survives while sustaining the viability of the group operations. Our estate management shall work closely with WWF of Kinabatangan district wherever technical support is needed to upkeep a balanced and healthy eco habitat.

  4. Sustainable Policy

    The following sustainable quality policies are formulated to strategize oil palm cultivation and palm oil milling:

    • Social Policy
    • Gender Policy
    • Environment and Biodiversity Policy
    • Operational Safety and Health Policy

  5. Community and Social development

    • Care for plantation/estate community

      1. Workers quarter
        New houses are constructed to replace the old wooden structures. The housing scheme is to provide estate workers with modern amenities designed to meet Minimum Housing Act requirement. This long term plan shall be progressively implemented to resolve the sub standard housing conditions.

      2. Education of worker’s children
        Transport is a major issue for school going children in the estate. Subsidies are provided to alleviate the burden of the working parents for ferrying children to school.

      3. Enhancing medical care of estate workers and community
        The management commits to provide quality medical care to all the estate workers. In addition to the service of an Estate Clinic manned by a full time resident Medical Assistant (HA), Visiting Medical Officer (VMO) is hired to conduct visit to estates on monthly basis. Health promoting campaigns are regularly organized jointly through collaboration between the Estate Clinic and Government Agency to educate the workers and estate community on general health care, prevention of diseases and healthy life-style. Gotong-royong, educational talks by qualified medical personnel and blood donation campaign are among the events carried out.

    • Care for social and welfare of community

      1. Sponsorship for games and sports
        In the promotion of sports and games, sponsorship is dispensed in the form of cash donation to the sports institutions and financial supports direct to participating teams. TSHSB is becoming renowned for her contributions and support in promoting the Basketball game in the region.

      2. Donations to poor and needy
        Deserving needy families due to illness and misfortune reported in the dailies cautiously picked and cash donations are given to alleviate grieves. The philanthropic gestures aim to arouse general awareness to create a caring society.

      3. Family days and educational campaign
        Family day for employees promotes fellowship and fraternity among all employees. Educational talks organized during the occasion on health care, good parenting and blood donation campaign to the general public help to instil awareness for healthy life-style and promoting communal integration for peace and harmony.

3 Ps- Planet(Environment), People( Social) and Profit(Economic)

The ultimate objective of sustainable growth thus focuses on harmony in existence by the 3 Ps namely Planet, People and Profit so as to ensure that:

  • Planet –Environmentally-APPROPRIATE
  • People -Socially- BENEFICIAL
  • Profit – Economically-VIABLE