RSPO PRINCIPLES & CRITERIA PUBLIC SUMMARY REPORT ANNUAL SURVEILLANCE ASSESSMENT 4

Transcription

1 RSPO PRINCIPLES & CRITERIA PUBLIC SUMMARY REPORT ANNUAL SURVEILLANCE ASSESSMENT 4 INDONESIA PT AGROWIRATAMA POM 2014 Report prepared by: Mahaswaran Maliyapan (Lead Assessor) Certification decision by: Gerben Stegeman (Certifier) Certifying Office 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, Klang, Selangor, Malaysia rspo@controlunion.com Control Union Certifications Control Union Certifications is a member of the Control Union World Group - an international inspection and certification body. CUC performs assessments and certification in many agricultural based fields such as FSC, RSPO, and Organic production, Sustainable Textile Production, Organic Exchange, GLOBALGAP, HACCP, BRC, GMP and GTP. CUC is accredited by the Dutch Council of Accreditation (RVA) on the European quality standard EN for the inspection and certification of CUC Organic program (according to the EU regulation 2092/91) and GLOBALGAP program. When requested a copy of the accreditation certificate can be obtained from CUC. Control Union (Malaysia) Sdn Bhd is a registered affiliate member of RSPO and is a private limited company owned by the Control Union World Group based in Malaysia. Control Union (Malaysia) Sdn Bhd is authorized to conduct and issue certification on behalf of RSPO and Control Union Certifications. Control Union (Malaysia) Sdn Bhd is a registered affiliate member of RSPO and is a private limited company owned by the Control Union World Group based in Malaysia. Control Union (Malaysia) Sdn Bhd is authorized to conduct and issue certification on behalf of RSPO and Control Union Certifications. RSPO Membership Number RSPO Approval Date 12/01/2006 Affiliate Membership RSPOPC-SUM-REPORT.F01 OCT2013 Page 1 of 39

2 Table of Contents PART 1: SCOPE OF THE CERTIFICATION ASSESSMENT AUDIT COMPANY AND CONTACT DETAILS RSPO MEMBERSHIP & CERTIFICATION DETAILS ANNUAL SURVEILLANCE ASSESSMENT DETAILS ASSESSMENT TYPE LOCATION OF THE PALM OIL MILL PALM OIL MILL OUTPUT AND APPROXIMATE TONNAGES CERTIFIED GENERAL DESCRIPTION OF SUPPLY BASE Statistics of the Supply Base and Estimated Tonnes of FFB produced per year Calculation of the Number of Production Units (N) to Sample for the Mill PROGRESS OF ASSOCIATED SMALLHOLDERS OR OUT-GROWERS, IF APPLICABLE TO THIS ASSESSMENT LOCATION MAP FOR THIS CERTIFICATION UNIT (SEE APPENDIX 1)... 7 PART 2: PARTIAL CERTIFICATION MANAGEMENT STRUCTURE NON-COMPLIANCE IDENTIFIED WITH 2.1 ABOVE SUMMARY OF THE TIME BOUND PLAN UN-CERTIFIED UNITS OR HOLDINGS SUMMARY OF THE FINDINGS FOR PARTIAL CERTIFICATION PARTIAL CERTIFICATION AUDIT AGENDA... 9 PART 3: AUDIT PROCESS ABOUT THE CERTIFICATION BODY AUDIT TEAM Qualifications of the Lead Auditor Qualifications of the Assessment Team AUDIT METHODOLOGY General Overview Assessment agenda for this Audit PART 4 ASSESSMENT FINDINGS LEAD ASSESSOR S SUMMARY AND RECOMMENDATION FOR CERTIFICATION SUMMARY OF THE FINDINGS BY PRINCIPLES AND CRITERIA Principle 1: Commitment to Transparency Principle 2: Compliance with Applicable Laws and Regulations Principle 3: Commitment to Long-Term Economic and Financial Viability Principle 4: Use of Appropriate Best Practices by Growers and Millers Principle 5: Environmental Responsibility and Conservation of Natural Resources and Biodiversity Principle 6: Responsible Consideration of Employees and of Individuals and Communities by Growers and Millers Principle 7: Responsible Development of New Plantings Principle 8: Commitment to Continuous Improvement in Key Areas of Activity : Summary findings for Scheme Smallholders (KKPA) KSBSAMB NON-CONFORMITY RAISED DURING THIS AUDIT AND ANY FROM THE PREVIOUS YEAR, IF APPLICABLE Non-Conformities Identified during this Audit Non-were raised during this audit Non-Conformity Identified during the last ASA, not applicable for MA Non-were raised during the last audit as this is the Main Assessment ISSUES THAT WERE RAISED DURING THE STAKEHOLDER CONSULTATION, IF ANY PART 5: RSPO SUPPLY CHAIN CERTIFICATION POM INCLUDED IN THE SCOPE OF THE AUDIT CONFIRMATION OF THE COMPANY S SUMMARY OF ANNUAL CERTIFIED VOLUME OF RSPO CERTIFIED PALM OIL AND PALM KERNEL OVER A SPECIFIED PERIOD SUMMARY REPORT INCLUDING A BRIEF DESCRIPTION OF THE SCOPE OF CERTIFICATION MONTHLY RECORDS OF CERTIFIED AND UNCERTIFIED FFB RECEIVED SINCE THE LAST AUDIT MONTHLY RECORDS OF CERTIFIED CPO AND PK PRODUCED SINCE THE LAST AUDIT RECORDS OF CERTIFIED CPO & PK SOLD UNDER UTZ ETRACE TO BUYERS SINCE THE LAST AUDIT, IF ANY NON-CONFORMITIES IDENTIFIED DURING THIS AUDIT DESCRIPTION OF THE ORGANIZATIONAL MANAGEMENT SYSTEMS RSPOPC-SUM-REPORT.F01 OCT2013 Page 2 of 39

3 5.9 FINAL CERTIFICATION DECISION BY CONTROL UNION FOR THE RSPO SCCS AUDIT OF THE POM PART 6: CERTIFIED ORGANISATION S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY DATE OF NEXT ASA DATE FOR CLOSURE OF NON-CONFORMITIES SIGNING BY THE CLIENT SIGNING BY THE LEAD AUDITOR SIGNING BY THE CERTIFIER PART 7: APPENDICIES APPENDIX 1: LOCATION MAP FOR THIS CERTIFICATION UNIT APPENDIX 2: LIST OF ABBREVIATIONS RSPOPC-SUM-REPORT.F01 OCT2013 Page 3 of 39

4 PART 1: SCOPE OF THE CERTIFICATION ASSESSMENT AUDIT 1.1 Company and Contact Details Company Name: PT. Agrowiratama Business Address: Spring Tower 06-61, Jl. K.L. Yos Sudarso Km 7,8, Tanjung Mulia, Medan 20241, Indonesia. Contact Person: Dr. Gan Lian Tiong Office Telephone: Web Site: - Other Certifications Held: ISCC, ISPO 1.2 RSPO Membership & Certification Details RSPO Membership Number: [old number: (O) dated 26th May 2008] Registered Client Name: PT. Agrowiratama Certificate Number: Old certificate No. C813182CU-RSPO New Certificate No. CU-RSPO Start Date Of Certificate: 17 th June 2010 End Date Of Certificate: 16 th June 2015 Date Of Original Certification: 17 th June 2010 Scope: Certification of the Palm Oil Mill and Supply Bases Type Of Certification: Single site Duration Of Certificate: 5 Years from date of certification 1.3 Annual Surveillance Assessment Details Dates Of This Audit: 14 th April 16 th April 2014 Audit Number: 4 [Four] 1.4 Assessment Type This is a RSPO Principles &Criteria Compliance assessment of the palm oil mill and its respective supply bases as listed in this report below. 1.5 Location of the Palm Oil Mill Name Mill Palm Oil Mill Capacity Location GPS Reference (POM) MT/Hour Address Longitude Latitude Jorong Aie Aji, Nagari Sungai Aua, PT Agrowiratama 45 Barat, Indonesia. Kecamatan Sungai Aua, Kabupaten E N Pasaman Barat, Propinsi Sumatera 1.6 Palm Oil Mill Output and Approximate Tonnages Certified Figures below are from: Only from certified supply bases (Y/N). YES Combining certified with uncertified supply bases (Y/N). NO If the Mill is receiving FFB from uncertified supply bases outside the audit scope, such uncertified sources is highlighted under the following sections as seen applicable: a. PART 1, Section 1.7 General Description of Supply Base, b. PART 2: Partial Certification, Section 2.4 Uncertified Units or Holdings, c. PART 5: RSPO Supply Chain Certification of this report RSPOPC-SUM-REPORT.F01 OCT2013 Page 4 of 39

5 Projected Production from the last 12 Months (MT) FFB CPO PK PKO PKE 203,416 48,820 12, Actual production MT FFB* CPO* PK* PKO** PKE** 204,550 49,152 13, Projected Production from the next 12 Months (MT) FFB CPO PK PKO** PKE** 191,932 47,983 11, Note : * Actual Production 17th June st March estimated production April th June 2014 ** PKO and PKE produced by PT Wira Inno Mas KCP Plant at another location which is RSPO SCCS certified. 1.7 General Description of Supply Base PT Agrowiratama palm oil mill and its supply base including the KKPA Scheme Smallholders were certified on 17th June The supply base comprises of PT Agrowiratama - Estate Sei Aur and scheme smallholders (KKPA) KSB I & KSB II, KSBSAMB and KSDBS which are fully managed by PT Agrowiratama. During this audit, the National Interpretation of RSPO P&C for Indonesia was used to assess the palm oil mill, estate and KKPA Scheme Smallholder. The mill processing capacity is 45 tons of FFB per hour Location of the Supply Base Oil Palm OPP Plantation Location GPS reference Area Summary (Ha) Name Address Longitude Latitude Total Mature Jorong Aie Aji, Nagari Sungai Aua Kecamatan Sumatera Barat, Indonesia. OPP PT.Agrowiratama Sungai Aua Kabupaten 01 - Estate Sei Aur Pasaman Barat Propinsi 99 o E 0 o N 5, , OPP 02 OPP 03 OPP 04 KSB I & KSB II (Koperasi Sawit Bersama) KSBSAMB (Koperasi Sawit Bosa Sungai Aua Manjunjung Bilang) KSDBS (Koperasi Sawit Datuk Bosa Sikilang) Jorong Aie Aji, Nagari Sungai Aua, Kecamatan Sungai Aua, Kabupaten Pasaman Barat, Propinsi Sumatera Barat, Indonesia Jorong Sungai Aua, Nagari Sungai Aua, Kecamatan Sungai Aua, Kabupaten Pasaman Barat, Propinsi Sumatera Barat, Indonesia Jorong Sikilang, Nagari Sungai Aua, Kecamatan Sungai Aua, Kabupaten Pasaman Barat, Propinsi Sumatera Barat, Indonesia 99 o E 0 o 11 24,86 N o E 0 o 09 44,92 N o E 0 o 08 42,02 N TOTAL 7, , RSPOPC-SUM-REPORT.F01 OCT2013 Page 5 of 39

6 Note : Reduction of Ha in Estate Sei Aur due to replanting area Statistics of the Supply Base and Estimated Tonnes of FFB produced per year FFB Estimate (mt)(budget Planting Years OPP Oil Palm Plantation Jun 14 May 15) OPP 01 OPP 02 OPP 03 OPP 04 Cycle (Years) PT.Agrowiratama - Estate Sei Aur 148, KSB I & KSB II (Koperasi Sawit Bersama) 13, KSBSAMB (Koperasi Sawit Bosa Sungai Aua Manjunjung Bilang) 14, KSDBS (Koperasi Sawit Datuk Bosa 14, Sikilang) TOTAL 191, Conservation and HCV Area (Ha) OPP Oil Palm Plantation Conservation Area (Ha) HCV Area (Ha) * HCV part of Conservation OPP 01 PT.Agrowiratama - Estate Sei Ha Aur TOTAL Ha * Indicate if HCV area is part of the Conservation Area. If the HCV area is part of the Conservation Area, then YES otherwise, No Percentage of Planted Oil Palm by different Age Ranges Planting Years by 5 year Ranges (March 2014) CU Code TOTAL P01 1, ( %) 1, ( %) 2, ( %) ( 2.36 %) ( 4.55 %) 5, ( 100 %) P ( %) ( %) ( 100 %) P ( 100 %) ( 100 %) P ( 100 %) ( 100 %) Total 1, ( %) 1, ( %) 3, ( %) 1, ( %) ( 3.61 %) 7, ( 100 %) Calculation of the Number of Production Units (N) to Sample for the Mill N = 0.8 Y, where Y is the number of units, with the result always to be rounded up to the next whole integer. Where only a sample of the supply base is assessed, units not previously assessed, or assessed earlier in the certification program, are to be preferred over those more recently assessed For the Mill, how many units make up the production base? Owned estates (Y) N = 0.8 Y Smallholders (Z) N = 0.8 Z Explanation as to the selection of estates sampled 1 estate and 1 KKPA were assessed. 1.8 Progress of associated Smallholders or Out-growers, if applicable to this assessment Progress of associated Smallholders or Out-growers towards Compliance with relevant Standards - should be in accordance to the 3 year implementation plan, if applicable to this assessment NA RSPOPC-SUM-REPORT.F01 OCT2013 Page 6 of 39

7 1.9 Location Map for this Certification Unit (See Appendix 1) PART 2: PARTIAL CERTIFICATION The rules for partial certification allow organizations that have a majority holding in and / or management control of more than one autonomous company growing oil palm to certify individual management units and / or subsidiary companies subject to certain rules. 2.1 Management Structure Section Criteria /No If If No Is the certified operation (POM and supply base as detailed above) a stand-alone operation and there are no other plantations or mills owned by the same company? No Section 2 is N/A Go to Is the certified operation part of a simple structure of Go to Go to operations owned by one company? Are there statements of the ultimate controlling shareholders and directors in the managing agency company/companies: a. Explaining the legal relationship and the management arrangements with the subsidiary companies and / or with any operating groups? - Go to Go to b. A statement of commitment to complying with the - Go to 2.4 Go to spirit of the RSPO for all companies and subsidiaries involved with the growing of oil palm and for the production of palm oil? Is there a time bound plan in place for all subsidiaries, Go to estates and palm oil mills? Is the parent company or one of its majority owned and / or managed subsidiaries a member of RSPO. 2.2 Non-compliance Identified with 2.1 Above Section Non-compliance findings NC raised Category There is no explanation as to the company s structure and therefore it Is not possible to conduct an effective audit against the rules for partial certification. - Major There is no statement of commitment to complying with the spirit of the RSPO for all companies within the company structure There is no time bound plan in place for the certification for all subsidiaries, estates and mills. - Major - Major No applicable membership of the RSPO. - Major 2.3 Summary of the Time Bound Plan Section Requirement Findings and any action required Compliance Does the plan include all subsidiaries, estates and, all subsidiaries were mills? certified in 2010 and Is the time bound plan challenging? Age of plantations. Location., all subsidiaries were Mill development. certified in 2010 and Infrastructure. Compliance with applicable law Have there been any changes since the last audit? New Plantings were carried as RSPOPC-SUM-REPORT.F01 OCT2013 Page 7 of 39

8 Are they justified? detailed in If there have been changes, what circumstances None. have occurred? Have there been any stakeholder comments? No comment was received Have there been any newly acquired subsidiaries? No new acquisition Have there been any isolated lapses in the implementation of the plan? None Has there been any systematic failure to proceed with the implementation of the plan? None General statement as to progress made since the last audit? The following plantations have under-gone the NPP process: 1. PT. Mulia Indah Sambas, West Kalimantan (NPP on 27 July July 2011, NPP Notification on 25 August September 2011). 2. PT. Multipersada Gatramegah, Central Kalimantan (NPP on 12 December December 2012, NPP Notification on 14 December January 2013). 3. PT. Globalindo Alam Perkasa (Alam Murni Estate), Central Kalimantan (NPP on 10 December December 2012, NPP Notification on 13 December January 2013). 4. PT. Agrowiratama Sambas (Stage II), West Kalimantan (NPP on 11 Dec Dec 2012, NPP Notification on 13 February 14 March 2013). 2.4 Un-Certified Units or Holdings NOTE: Companies may demonstrate compliance by clear evidence of a self-audit (i.e. an internal audit for all subsidiaries, estates and Palm Oil Mills) Section Requirement Findings and any action required Compliance Did the company conduct an internal audit? If so, has a positive assurance statement been produced? No replacement after dates defined in NIs Criterion 7.3 of: Primary forest. Any area identified as containing High Conservation Values (HCVs). Any area required to maintain or enhance HCVs in accordance with RSPO criterion 7.3. The company has been conducted internal audit and positive assurance statement and all the subsidiaries have been certified successfully. No replacement of primary forest was noted. Areas containing HCVs have been noted. These designated areas are maintained and enhanced according to the requirements of RSPO. The above mentioned [2.3.9] plantations have under-gone the NPP process. RSPOPC-SUM-REPORT.F01 OCT2013 Page 8 of 39

9 2.4.3 Any new plantings since January 1 st 2010 must comply with the RSPO New Plantings Procedure Any Land conflicts are being resolved through a mutually agreed process, e.g. RSPO Grievance procedure or Dispute Settlement Facility, in accordance with RSPO criteria 6.4, 7.5 and Any Labor disputes are being resolved through a mutually agreed process, in accordance with RSPO criterion Any Legal non-compliance is being resolved in accordance with the legal requirements, with reference to RSPO criteria 2.1 and 2.2. No new planting were noted during the audit. All previous planting had undergone the NPP notification. None noted. No stakeholder comments or complaints noted during this assessment. None noted. No stakeholder comments or complaints noted during this assessment. The company has met its legal requirements. See also audit findings under PART 4, criteria 2.1 and 2.2 below as well. 2.5 Summary of the findings for Partial Certification The audit team assessed compliance with the above requirements during this audit. Failure to address any noncompliance identified may lead to certification suspension. No failure or non-compliance against the partial certification requirement was noted during in this audit. 2.6 Partial Certification Audit Agenda Date Location Agenda NA PART 3: AUDIT PROCESS 3.1 About the Certification Body Control Union Certifications is a member of the Control Union World Group an international inspection and certification body. CUC performs Audits and certification in many agricultural based fields such as FSC, RSPO, and Organic production, Sustainable Textile Production, Organic Exchange, GLOBALGAP, HACCP, BRC, GMP and GTP. CUC is accredited by the Dutch Council of Accreditation (RVA) on the European quality standard EN for the inspection and certification of CUC Organic program (according to the EU regulation 2092/91) and EUREPGAP program. When requested a copy of the accreditation certificate can be obtained from CUC. Control Union (Malaysia) Sdn Bhd is a registered affiliate member of RSPO and is a private limited company owned by the Control Union World Group based in Malaysia. Control Union (Malaysia) Sdn Bhd is authorized to conduct and issue certification on behalf of RSPO and Control Union Certifications. 3.2 Audit Team Lead auditor: Team member 1: Team member 2: Team member 3: Mahaswaran Maliyapan Mr. Rizal Kassim Mr. Hasnop Mr. Mohd Jamalul Arif Hamin RSPOPC-SUM-REPORT.F01 OCT2013 Page 9 of 39

10 3.2.1 Qualifications of the Lead Auditor Requirement A minimum of post high school (post-secondary school) training in either agriculture/forestry, environmental science or social sciences; At least 5 years professional experience in area of work relevant to the assessment (e.g., palm oil management; agriculture/forestry; ecology; social science); Training in the practical application of the RSPO criteria, and RSPO certification systems; Successfully completion of an ISO 9000:19011 lead auditors course; Training in the practical application of RSPO certification systems. A supervised period of training in practical auditing against the RSPO criteria or similar sustainability standards, with a minimum of 15 days audit experience and at least 3 audits at different organizations. Qualifications Certified ISO 14001:2004 and OHSAS 18001:2007 Lead Auditor. More than 15 years of working experience in various industries. Fully trained in similar agriculture certification programmes such as RSPO, SCCS and RFS2. Involved in RSPO assessment since Member of CUC RSPO audit team. Involved in audits conducted in Malaysia and Indonesia. Completed ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 lead auditor course in June Involved in RSPO assessment since Member of CUC RSPO audit team. Involved in audits conducted in Malaysia and Indonesia. Involved in audits conducted in for many different companies in Malaysia and Indonesia. RSPO endorsed lead auditors course. Completed RSPO Lead Auditor training in Oct 2013 Signed code of conduct. General knowledge of: RSPO P&C standards. CUC organizational structure. CUC quality systems. Lead auditor role. Report writing. Stakeholder consultation. Certification decision process. RSPO SCCS program manual. CUC filing systems. Correct use of RSPO trademarks. History and objectives of RSPO. CV available. Completion of CUC RSPO lead auditor training Qualifications of the Assessment Team RSPO Requirement Team Member Name Qualifications Fluent in main local languages and English. Mr. Rizal Kassim Mr. Hasnop Mr. Mohd Jamalul Arif Hamin Fluent in Bahasa and English Fluent in Bahasa and English Fluent in Bahasa and English Field working experience in the palm oil sector, or a demonstrable equivalent. Mohd. Rizal Md. Kassim Mohd Jamalul Arif Hamin Forestry and wood base working knowledge and qualified QMS and OHSAS auditor. Currently active in SCCS and ISCC audits globally. Global GAP and agriculture auditing experience and RSPO is the prime auditing scope in CUC. RSPOPC-SUM-REPORT.F01 OCT2013 Page 10 of 39

11 Mr. Hasnop Agriculture and engineering background with many years experience in 2nd and 3rd party auditing of QMS, EMS, OHSAS and RSPO. well verse in local legal requirements. Good agricultural practices (GAP), integrated pest management (IPM), pesticide and fertilizer use. Health and Safety auditing on the farm and in processing facilities. (For example OHSAS or occupational. Health and safety assurance system). Workers welfare issues and social auditing experience. (For example with SA8000 or related social or ethical accountability codes). Environmental and ecological auditing. (For example experience with organic agriculture, ISO or environmental management systems). Mr. Rizal Kassim Experience as safety office in Manufacturing company Mr. Mohd Jamalul Arif Hamin Involve in RSPO auditing since Jan 2011 Mr. Hasnop RSPO certified auditor Mr. Mohd Jamalul Arif Hamin Involve in RSPO auditing since Jan 2011 Mr. Hasnop OHSAS certified auditor Mr. Mohd Jamalul Arif Hamin Involve in RSPO auditing since Jan 2011 Mr. Mohd Jamalul Arif Hamin Involve in RSPO auditing since Jan 2011 Mr. Hasnop EMS certified auditor Economic issues. Mr. Mohd Jamalul Arif Hamin Involve in RSPO auditing since Jan Audit Methodology General Overview The Audit was carried out in conformity with the procedures as laid down in the CUC Procedure Manual and the RSPO Program Manual for the auditors and Certifier. During the Audit the qualified CUC auditors used the RSPO standard as endorsed for the country in which the audit took place and recorded their findings. Workers and local communities were interviewed and evidence sought to confirm ongoing compliance to include: Chemical stores. Storage, MSDS leaflets, Herbicide mixing areas, PPE, Ventilation, Security. Field inspections. Herbicide application programs. Harvesting sites and efficiency. Fertilizing operations. SOP s. Soil maps. Land preparation. Ground cover. IPM. First aiders and boxes. Ground cover. Soil erosion. Field observations of all operations. Worker interviews. OSH. Sexual, religious, racial harassment. Pay and contracts. Child labor. First aid. Awareness. RSPOPC-SUM-REPORT.F01 OCT2013 Page 11 of 39

12 Re-planting sites. Zero burn. HCV s. Identification. Management plans. Environmental Impact Assessments. Implementation. Riparian zones. Width. Current and future management. Non maintenance regimes. Water management. Water courses. Water monitoring. Road maintenance. Run off. Social amenities. Social Impact Audits. Local communities. Contributions made. Employment opportunities. Social impacts. Complaints procedures. Workshops. Oil traps. Safe working environment. PPE. Diesel tanks. Environmental waste management. Line sites. Interviews with householders. Inspection of water discharge points. Water improvement plans. Waste disposal. Documentation review. The Palm Oil Mill audit verification included the following activities: Mill and workshop inspections. Documentation review & worker interviews. Mill. SOP s. Safe working environment. Gen sets. Walk ways. Signs. EFB. POME treatment. Emissions. Mass balance. Diesel tanks. PPE. Fire extinguishers. First aiders and boxes. Fuel and water usage. OSH. Training. Management structure. First aiders. Full document review. Completion of the checklist. Review and documentation of evidence. All aspects of RSPO P&C s applicable. Worker interviews. OSH. Sexual, religious, racial harassment. Pay and contracts. Compliance against the RSPO SCCS certification scheme. Verification: Verification of implementation was done through field observations, workshop and chemical store inspections, worker and community interviews and mill inspections as summarized above Assessment agenda for this Audit Date Auditor Location Main activities All Auditors Mahas PT. Agro [training room] Opening meeting Chaired by the audit team leader Introduction by team leader Presentation by respective managers Presentation of Palm Oil Mill source of FFB by respective managers 09.30am Supply Chain Certification Assessment of the POM (RSPO SCCS) 14/04/2014 [Monday] Jamal PT. Agro POM Mill inspection Workshops Stores POM application Document review 15/04/2014 [Tuesday] Hasnop Jamal Mahas Sei Aur Estate Field operations Worker interviews Housing Medical Schools Local communities Environmental Document & Field operations. Worker interviews Chemical stores Workshops RSPOPC-SUM-REPORT.F01 OCT2013 Page 12 of 39

13 16/04/2014 [Wednesday] Hasnop All auditors KKPA [KSBSAMB] PT. Agro [training room] Housing Medical Schools Local communities Environmental Preparation for closing meeting Additional field visits and meetings with managers as necessary Closing meeting Chaired by the audit team leader Welcome and introduction by the team leader Presentation of findings by the audit team Questions and answers Final summary by team leader End of assessment PART 4 ASSESSMENT FINDINGS 4.1 Lead Assessor s Summary and Recommendation for Certification The mill and supply bases visited (as per the above Tables 1.5 and 1.7.1) were assessed at field, office, facilities, stores and a document review was carried out in accordance to the RSPO principles and criteria. The subscribed RSPO management system s documentations seen with minor changes that due to internal and external influenced such as replanting SOP [peat soil treatment / long range replanting program]. Specific evidence was recorded for estate and mill. Interviews with Estate Managers, Mill Manager, members of workers union and committee took place in both formal and informal environments and worker interviews were conducted at the supply base and the mill. The management is highly committed in maintaining the RSPO system by adopting to continuous improvement programs. RSPO has helped the operating units in identifying needs based analysis prior to any CSR programme. Improvement was also sighted in PPE allocation, monthly / annual medical check, the workers quarters has improved with better facilities. The HCV program has created great awareness among all stakeholders as well among the employees. The management continually monitors the established KPI / objectives that significantly rule the achievement of company s corporate policy on RSPO. The establishment of Audit & Certification from HQ will perform audits on monthly basis which will be reported to Sustainability team head in HQ. Top management continuously establishes directions for the middle and upper management to execute in ways to sustain the RSPO management system. Every quarterly, a review for the performance of mill and its supply bases will be carried out with the President Director. It is therefore the recommendation of the lead assessor that: A certificate of compliance is issued. Signed: Name: Mahaswaran Maliyapan Date: 17/04/2014 RSPOPC-SUM-REPORT.F01 OCT2013 Page 13 of 39

14 4.2 Summary of the findings by Principles and Criteria Over the 5 year period of the life of the certificate, there will be 4 annual surveillance audits Identified Non-Conformities and noteworthy Positive and Negative Observations. The RSPO require that this report contain findings by each principle and some example criteria. Please see table below. Principle 1: Commitment to Transparency Criterion by Audit Summary Records of request and respond are maintain effectively by HUMAS, however each operating unit are made known of the process. Documents that are required to make publicly available are being managed well. Overall the application of principle 1 at all operating units found satisfactory. ASA The Humas team whom based in Medan navigates with mill and estates operating units. Sighted the Records of Information Request and Respond [001-SHE/03.01/1.4]. Since April 2013 to Mar 2014, there were 18 requests were made [8 for legal, 8 for environment, 1 for social and 1 for estate]. However the External Complaint & Grievances Book seen still not fills as no such events took place. Sighted the Records of Information Request and Respond [001- SHE/03.01/1.4] booklet adequately provided with information that were responded. Observed the most recent request was made by Bpk Ardisyah Putra from Baristand Padang on 09/04/2014 requesting permission to perform sampling for air monitoring, it was responded by Bpk Dimas. Policy MM-POD/01.01/6.3.0 (rev.3) dated 17/08/13 and AGR- POD/01.01/1.4.0 dated 07/08/13 indicate of documents related to operational activities to retained at least for 10 years, labour document for one year, legal documents until expiry, research document for 7 years and SCCS and ISCC for 10 years. ASA Company maintains SOP no. AGR-SOP/03.01/ with title Stakeholders Information Request refers also to POD no. AGR- POD/01.01/1.1.0 with title Company Confidential stating what are the document treated confidential such as financial and company strategy, intellectual property and others issue is think to give negative effect to company. Documents other than mentioned above are considered as publicly available upon request. These include legal, environment, social, OSH and continues improvement plan. Principle 2: Compliance with Applicable Laws and Regulations Criterion by Audit The company has a comprehensive system for ensuring all estates, KKPA and mill managers are up to date with the Summary applicable laws and they have an internal monitoring system to ensure compliance. The boundary stones are inspected in the fields confirmed that these have been maintained. ASA Sighted some legal documents, such as IUP (Plantation permit), HGU documents, AMDAL documents and some other mandatory permits are maintaining well at respective operating units. Observed the implementation of best practice in mill and estate operation such as waste water treatment, best agriculture practices, chemical handling and usage, company regulation, etc. Checklist and implementation of regulation and compliance RSPOPC-SUM-REPORT.F01 OCT2013 Page 14 of 39

15 analyses of legal and other regulation is available to evaluate the compliance. Public relation (HUMAS) department is responsible to update any new regulation and analyse the compliance. Sighted the SSP [Surat Storan Pajak] NPWP dated on 23/08/2013 being evidence of land title payment [Rp ] for the HGU [7.990 Ha] ref # Seen the List of Machine Correspondences matrix that overview of the list of machineries and the competence person s requirement. Sighted the competency record for Bpk. Rahmad Heriadi Hutabarat whom has valid licence of competence electrician ASA There aren t any disputes or conflicts with local community were evidence during this assessment. Unless if there is any, a mechanism to resolve the conflict or disputes shall be refer to Keluhan & Komplain external No. AGR-SOP/01.01/5.1 issued on 01 December 2007 and first revised on 01 March Negotiation and agreement by win-win solution for all parties is part of mechanism prior to the court way. ASA No land claim from community and no use of customary land. Principle 3: Commitment to Long-Term Economic and Financial Viability Criterion by Audit A documented operational plan and budget covered operational Summary strategies to meet the plan and budget have been prepared by the estates and mill. Replanting programme in the near future made available in proper records. ASA Master Copy Verifiers [AGR-RSPV/03.01/1.2] REV 10/02/2014. The plan starts from that consisted for estate, KKPA and the mill. The plan effectively describes of the FFB generation by respective sites as well the CPO production by the mill. Sighted the hectarage statement, replanting schedule and replanting layout in accordance to the programme. Sighted the recent 3 years of the actual against budgeted production expenditure for Sei Aur estate Budget 169, , , Actual 175, , , Also sighted the income trend of smallholders in Oct 13 Nov 13 Dec 13 KSB I , , KSB II 4, , , KSDBS 3, , , KSBSAMB 3, , , Estate has a replanting programme until years 2030 involved 6, Ha of matured area. For 2014, total as Ha was planned to be replanting. Until March 2014, Ha was completed chipping, pulverarate and stacking in the field. The progress is planned to be completed by Dec Monthly Management Report available to monitored the progress of the replanting as according to the programme. Yearly review will be conducted by HQ to this programme. RSPOPC-SUM-REPORT.F01 OCT2013 Page 15 of 39

16 Principle 4: Use of Appropriate Best Practices by Growers and Millers Criterion by Audit The company has established the relevant SOPs for all stages of operations in the estates and mill and there were sufficient Summary evidences that these have been implemented. Risk assessments are conducted and the necessary attention to OSH is given. Training is conducted for all workers and contractors. ASA GAP-group agriculture policy from Land clearing to harvesting established, maintained and updated. Nursery POD/01.01/2.1.1, Land Preparation POD/01.01/2.2.1, Land conservation POD/01.01/2.3.1, Thinning POD/01.01/2.4.1, Upkeep, POD/01.01/2.5.1, Pest and disease, POD/01.01/2.6.1, Manuring, POD/01.01/2.7.2, Harvesting policy, POD/01.01/2.8.3, Water analysis for Sikilang and Batang Alin River carried out once per year according to GAP Group guidelines. Analysis report for period available dated 20 Sept 2013 includes 4 points of sampling. Report reference no. 1292/BPKIMI/BRSIP/LAB/X/2013 by Industrial Standardization Department using parameters such as ph, BOD, COD, Dissolved oxygen, Phosphate, Nitrate, Ammonia, Arsenic, Cadmium, Chrome, Copper etc. The analysis report concluded as meeting the requirements. ASA Soil analysis carried out every year to determine soil fertility and recommendation of fertilizer by R&D Department from Pekan Baru. For 2013, 40 soils sample was taken for 2014 fertilizer recommendations. For leaf analysis, 57 samples taken and report of analysis available: 033/RDL-INT/LV/13 dated 06/05/13 for 27 samples 034/RDL-INT/LV/13 dated 06/05/13 for 4 samples 035/RDL-INT/LV/13 dated 06/05/13 for 26 samples Both sampling process will be conducted on annual basis include major elements such as N, P, K, Mg, Ca, and also minor elements such as Boron, Cu and Zinc. From the soil analysis report 2013, total mineral soil is Ha and vast area identified as Peat soil area( Ha) Breakdown for type of peat soil identified as: Peat cm Ha Peat cm Ha Peat , Ha Peat cm Ha Peat >500cm Ha From recommendations of R&D also, estate applied a Dried Decanter Solid (DDS) and Boiler Ash from palm oil mill to improve soil fertility in field. For peat soil management, estate was maintained 563 water gates to secure the water level in peat soils area. Water level is monitored by appointed staff and reported every month. Level of water is maintained in range 50 60cm based on company GAP policy. Peat soil subsidence monitoring also include in peat soil water management. Monitoring done every 6 month commenced on April RSPOPC-SUM-REPORT.F01 OCT2013 Page 16 of 39

17 ASA Soil map verification peat soil map" dated , Extent & distribution of various soil type, soil series updated. No fragile soil identified. Estate have very minimum of slopes area. Range in 0 6 degree of slopes all around the estate. Slope map available surveyed by external consultant, JH Agriculture Services latest on Road maintenance program , total meters done for grading 179,344 meters, compared to budget 2012 (297,910 meters). The 3 years planning from The priority of the maintenance will be done to the road areas that needed priority. From the soil analysis report 2013, vast area identified as Peat soil area ( Ha). For peat soil management, estate is maintaining a total of 563 water gates to secure the water level of soils. Water level is monitored by appointed staff and reported every month. Level of water is maintained in range 50 60cm based on company GAP policy. Peat soil subsidence monitoring also include in peat soil water management. Monitoring done every 6 month commenced on April No low organic soil and slope areas. The monitoring of water management is done weekly. Record monitoring of number of water weir. Condition of water, main rain collection drain and outlet. Flow and direction of flow and water level between cm. Monitoring record of March 2014 is verified. ASA Estate has 2 rivers, Batang Alin River and Sikilang River. Company policy is river width above 10m must maintained 100m buffer zone alongside the river. Buffer zone is maintained with proper management such as planting of jungle trees and no chemical activities allowed in this area. Area where previously planted oil palms removed to incorporate biodiversity enhancement plan and restore the riparian along the river was planted with forest trees. Restoration of Riparian zone along the river riparian has been given high priority for planting of forest trees such as Samanea saman, Swietenia macrophylla, Shorea sp, Terminalia cattapa, Durio Zibethinus, Mimusops elengi. Previous planted trees have grown about 3-4 meter and biodiversity enhancement is taking place along this river green belt area. 50 meter riparian zone is maintained without any chemical application. Appropriate signage also maintained at this area to give awareness to the workers and community. Estate also does the monitoring such as water sampling for Batang Alin and Sikilang River. Water analysis is carried out once per year based on Group GAP guidelines and be included in RKL/RPL report. Furthermore, various visitors come and do their research with collaborations of estate management such as water analysis report by University of Andalas on ASA IPM plan were documented in Group GAP guidelines, which includes beneficial planting and barn owl. Planning and realization of IPM programmes were monitored by mapping the beneficial plant to be planted with types of plant. The plans are monitored by daily completion of planting. IPM Monitoring and census carried out monthly basis for leaf eating caterpillar setora nittens and sethotosea asigna, barn owl census, termite census and rat census. RSPOPC-SUM-REPORT.F01 OCT2013 Page 17 of 39

18 Apart from normal routine maintenance of the barn owl boxes, monitoring of the owl population is carried out on monthly basis. Census record shows no serious attack. Trainings are given to all staff on IPM. Pesticide toxicity units monitored by each active ingredient and it are calculated based on LD 50(Mg/Kg), chemical usage, total a.i. Used, Ha planted, FFB produce, pesticide usage (L/Ha), L/ton and finally result shown in Pesticide toxicity units monitored (Kg/LD 50/FFB) by monthly and up to date. ASA Estate has a list of approved type of chemicals to use in field by R&D Department. Total 15 types of chemicals are used in PT. Agrowiratama estate. List of chemical available included type of chemicals (herbicide, fungicide and insecticide), commercial name, LD 50 (mg/kg), active ingredients, supplier name, license number and permit validity. Record of the pesticides usage included active ingredients, area treated, amount applied per ha and liter per ha. Record of Capture 100EC (a.i Cypermethrin) was shown high due to replanting programme in progress. Sample of pesticide record on March as Agrimec 18EC (a.i Abamectin) 0.60 liter, a.i used 0.11 kg, Ha planted Ha, FFB produce 13, and liter/ha. Pesticide usage is from recommendations of R&D Department. Agrochemicals waste is centralized at scheduled waste store at estate with permit number No /229/BUP-PASBAR/2014 on date 10 March 2014 according to the regulations. Then the waste will be collected by PT. Primanru Jaya (Permit no. 234) not exceed than 90 days waste is stored in estate. Record of inventory is well maintained by estate, last collecting made on 10 March 2014 as details below: - Oil drum 5 x 1000 liter - Used battery 10 units - Bulb lamp 29 units - Oil filter 93 units - Chemical containers - Workshop Rags Company used chemical type 1B Sime Ebor Baits (a.i Warfarin) for rat attacking in the field based on the census carried out every month. No using Paraquat in any operation. So far, only pesticide Warfarin 0.05% (class 1b) is using but company has commitment to reduce the usage through IPM practice in the field. Record shown the usage of this pesticide is still less due only will use if census of rat is higher and cannot be control by IPM practice. This chemical only is used when census result is exceeding the 5% limitations of attacks. However, sighted highly usage of Sime Ebor Baits from Jan kg and February 5, Kg. Justification of February application according to Group Agriculture Policy for Pest and Disease management, for palm oil tree above 3 meters area, baits must be applied every 6 months until the baits effects below than 20%. (refers to Group Agriculture Policy Pengendalian Tikus di Perkebunan Kelapa Sawit dated 18 April 2012). Annual medical checkup carried out by Laboratory Clinic RSPOPC-SUM-REPORT.F01 OCT2013 Page 18 of 39

19 Anugerah besides monthly checkup by internal estate clinic for all workers related to chemicals. Medical checkup for workers such as Chemical store operator, mandor/sprayer, mandor/weeder workers, mechanic, machine operator and gensets operator. On 15 March 2014, total 226 workers were sent for medical checkup involved blood test, urine, lungs and audiometric test. Sample of medical checkup report for Sprayers, Siti Kholipa and Ernawati is verified. Record of all agrochemical verified no pregnant or breast feeding woman was involved in chemical activity. Monthly health checks to all sprayers to ensure they are free said issue. ASA In the mill, the safety, healty and hygiene policy dated , revised The policy covers minimize the risk of accident, poor health, unsanitary working environment, identify, assessing and controlling the risk, provide information thought training, announcement, to ensure safe work practice, discuss OSH issues in work place, contractors/employees and visitors to obligate the rules and regulations of OSH in work place. As for the estate, Documented Occupational Safety & Health (OSH) policy and its implementation seen effectively communicated and implemented. Among the programs that associated with OHS includes OSH training, medical check-up, daily safety briefing, Hazard and risk analysis of work place, implementation of PPE usage and inspection, safety committee, safety meeting, internal safety audit where the subjects in this implementation. Responsible person for OSH in PT. Agrowiratama is headed by safety officer, Mr. Andi Roy Silalahi (certificate no. KEP.5120/M/DJPPK/II/2014. Sighted the insurance coverage for month of Jan and Feb All the employees covered by insurance. Jamsostek insurance coverage for all workers. i.e. number DD and DD Sighted the 2013 and 2014 medical report summary for 131 workers. The summary made to 3 types of sickness from 20 workers that needed further attention from panel doctors. Monthly Records of health examination for worker applying agrochemicals available, verified from Medical check-up record for individual worker for year It is conducted on monthly basis. Verified from medical check-up for employee Ms. Ernawati - sprayer leader, details of check-up are skin irritation, breath, nail, blood pressure, weight, with details result. Risk assessment for OSH available in HIRARC document for HIRARC included all activities in estate operations from planting, harvesting, pruning, transportation, weeding, chemical handled such as mixing and application, pest management, workshop works, scheduled waste management, administration etc. Last revision on January The revision also will be made if any accident happen, amendment from legal, changes to the operation activities and annual revision. HIRARC document contains as what the process, sample of activity, hazard identified, potential level, risk level and existing control measures (ECM). OSH training programme is divided into 4 category in estate: RSPOPC-SUM-REPORT.F01 OCT2013 Page 19 of 39

20 - Inspection team training - Fire Team Training - Emergency situation Training - OSH environment Training The most recent OSH training dated 29 March 2014 by safety officer, Mr. Roy to 14 personnel at workshop workers. Estate has 6 certified persons for first aid training. Certificate available and verified: - Sukrihadi 410/BK3-MDN/XII/ Nispan 416/BK3-MDN/XII/ Syafrizal - 420/BK3-MDN/XII/2008 As part of future programme in 2014, 2 persons from estate will be send for first aider training as additional to existing first aider. 20 minor accidents reported in period Jan March level accidents sighted on March for criminal case in work time. Accidents was reviewed and reported ASA Training calendar seen integrated of environment, social and OHS with training status well indicated. Since Mar 2013 to Mar 2014, there were 174 trainings were effectively carried out by estate and mill. Sighted the records of attendance for RSPO & ISPO awareness to workers, OHS and first aid training, HCV awareness for staff, understanding of SOPs and PODs, spraying techniques etc. Both in mill and estate, the training programme for all workers is based on Training Need Analysis assessment. TNA document is developed on 30 Dec 2013 for 2014 training programme. TNA is divided in each estate operation and type of working condition. Programme for 2014 sighted, divided by several training aspect such as Agronomist Training, Administration Training, HRD Training, OSH Training and General Training. Document is in matrix included type of training, trainer, level of workers, realization and planning date. In estate, record of training for each employee kept in the personal workers file. Files of workers name Ernawati (sprayer), Lia Martoya (sprayer) and Yuhendri (Store operator). Sighted the training attendance record for building contractor [CV Bukit Mas] and engineering works contractor [PT. Binajaya Mitra Persada] dated on 23/08/2013. The required PPE during the work assignment shall be managed by contractor. The number of workers required for the assignment closely monitor by the safety officer on daily basis. Additional workforce from contractor required another training session. In estate Agreement with CV. Bangkit Jaya Lestari was sighted for school renovation. Training record available. Principle 5: Environmental Responsibility and Conservation of Natural Resources and Biodiversity Criterion by Audit AMDAL is prepared for the entire complex that dated in RKL and RPL submission to the local authorities was in place and sighted as evidence. HCV assessment has also been done for the entire complex with sufficient inputs produced during the audit. Summary Waste management being controlled and monitored effectively in all the operating units and records are maintained by respective in chargers. The mill has documented fossil fuel usage and communicates the figures with HQ. RSPOPC-SUM-REPORT.F01 OCT2013 Page 20 of 39

21 ASA RKL-RPL for both covers effectively of the environmental and social aspect. Sighted the DPPL [Dokumen Pengelolaan dan Pemantauan Lingkungan] from Oct 2007 to Jan 2008, conducted by PT Bentang Cakrawala. Company was committed to environment aspect. Activity such as planting jungle tree species alongside the river, monitoring HCV, birds and protected animals is carried out by monthly. To date there are 608 jungle trees planted along Sikilang River and will be monitored once a year. ASA Identification of HCV conducted by consultant - Aksenta in April 2008 HCV areas total Ha. Area A Ha, Area B 597, 21 Ha. Type HCV 1, 3, 4 and 5. Mammal 8 Species, reptiles 9 species, birds 38 species. From all species monitored, 10 species of birds is protected, 1 mammal is protected (North Sumatran leaf monkey). Internal monitoring of protected animal done in every month. Meeting with the central management every year to review the HCV areas and habitats. In estate on every year there will be a stakeholders meeting on HCV and observed the latest meeting was held in August 2013 with attendance record along with HCV socialization with community. Signage of Forbidding any use of chemical in HCV area and riparian zones. No burning, illegal hunting. Sign boards are monitoring by check list every three months. Internal monitoring is done by audit and certifications together with Pak Junef Murtri S. - Staff Sustainability ASA In estate the waste identifications document be revised per semester. Total 22 checkpoints is identified to potential generate the waste. Source of waste includes pre-mix centre, fertilizer store, oil store etc. Waste management includes recycle programme in progress. Segregation of waste is carried out from housing, office until land fill site. Schedule also is followed by collector 2 days once strictly. Collaborations with third party to sell back recycle items to reduce the waste in estate. Schedule waste is collected by PT. Primanru Jaya. Refer to P4. ASA Electricity from Bio gas energy / power supply to workers started in April Biogas power being distributed on 24 hours and record is to be on monthly basis. Sighted a map on CDM supply, to workers living quarters and to school. Efficiency usage of Palm Methyl Ester (PME) for March 2014, Actual consumption is recorded monthly. Efficiency of energy consumption and records of energy usage per ton COP and PK from 2013 and up to March 2014 are updated and verified. In estate PME is replacing fossil fuels. Transportations: dump truck, mini tractors use Palm Methyl ester (PME). ASA Policy on No burning well implemented. Appropriate signages maintained surround the estate and mill. Condition to not use the fire well mention in SPK of replanting work. It is found and verified the procedure of emergency response to land burning (Penanganan Keadaan Darurat) No. OSH/01.01/2.4 dated July, 20th This procedure is about every actions need to be taken due its fire existence and also its organizational structure. Fire extinguisher well maintained sighted in proper places. ASA Sources of the emission well identified in the identification matrix dated on 02/01/2014. The category of emissions rage from noise, air, reusable, hazardous waste and domestic waste. The noise emission test carried out on 03/03/2014for sterilizer, engine RSPOPC-SUM-REPORT.F01 OCT2013 Page 21 of 39

22 room, kernel recovery process and biogas plant. The maximum reading was recorded at engine room [88.5dBA]. Sighted also the chimney test result for both boilers [1 & 3] dated on 07/11/2013 [ref: 1650/BPKIMI/BRSIP/LAB/XII/2013. Verified the latest 3 months record [Jan Mar 2014] for BoD reduction, Month inlet outlet Jan Feb Mar 142, As for noise reduction, the most significant area is engine room, hence tighten measure for PPE usage [ear muffler] being monitor. For the air pollution, the dust collector monitoring interval is on monthly basis. Sighted the fossil fuel usage reduction programs and below is the overview since Mar 14 Fossil fuel CDM Since the introduction of Aeroflow in 2008, the BOD level is within 300ppm [standard 5000]. The ph is being monitor on daily basis before proceeding for land application. Principle 6: Responsible Consideration of Employees and of Individuals and Communities by Growers and Millers Criterion by Audit Summary SIA conducted effectively covering the socio economy; culture and health of surrounding people who may be affected by plantation activities by company either from negative or positive impact. Policy for sexual harassment displayed and communicated. Violence towards women mentioned clearly in the group policy. CSR programs are well executed and budget against the plan sighted. ASA SIA was initially done by Aksenta from 20/04/ /04/2008. The assessment output categorized into social, economic and health. There is a plan available to mitigate the negative impacts. As for the estate, the RKL and RPL evidence the assessment done in accordance to local government s requirement that to be done in every 6 months. Noted there was no change in the operational scope. Estate has to provide monitoring report called RKL & RPL every semester as per Indonesian Laws and Regulations. This assessment is improvement from DPPL and covered environment such as pollutions, animals, sources of pollution, best agricultural practices, riparian zone management and land burning monitoring. From social aspects is cover about workers and smallholders such as labour conditions, water consumption, financial income and people perception, CSR and providing necessary infrastructure to local people. The monitoring of soil, HCV and conservation area, drinking water and water way status being included in report on 6 months interval. On operation side, assessment also includes herbicide and fertilizer applications, IPM, pest disease and weeds and biological RSPOPC-SUM-REPORT.F01 OCT2013 Page 22 of 39

23 control agents. This assessment also cover to safety requirement in mill and estate area such as providing workers with PPE, enforcement of SOP s, providing trainings and medical checkup for the workers. ASA AGR-SOP/03.01/ is available for Program Konsultasi Berkala Dengan Stakeholder. AGR-SOP/03.01/ established for Penyampaian Keluh Kesah Pekerja. Other than that, the AGR- SOP/03.01/3.9.0 developed for Keluhan & Komplain External. 151 list of stakeholders from the nearby villages. Government provincial and district level, Police, Army, Bank, In house worker union, suppliers, contractor & hospital. Last updated Jan 2014 approved by Humas Mr. Ibrahim. External Socialisation to the nearest villages done and sighted report Stakeholder Konsultasi Report dated Sighted some discussion within the villages and organization Ex: Explanation of CSR; Awareness of SOP; etc. Head of HUMAS (Public Relation), Mr. Ibrahim. ASA The SOP, AGR-SOP/01.01/5.1 dated on 01/03/2014 is related to the Complaint is in place along with the complaint flow chart to manage the complaints. Also sighted procedure no. AGR- SOP/01.01/6.1 dated on 1 January No disputes recorded. No complaint recorded for last 3 years. The established procedure of AGR-SOP/01.01/1.0 for Land Compensation sighted. ASA AGR-SOP/01.01/1.0 Ganti Rugi Lahan dated No compensation occurred. ASA Sighted the minimum wage instruction Upah Minimum Provinsi Sumatra Barat 2014 from the Governor [ref: ]. Rp. 1,490,000. All workers will receive monthly pay slip mentioned total wages of the workers. Pay slip and contract workers name Ernawati and Siti Kolipa was verified. Work term and conditions is agreed and documented into Perjanjjian Kerja Bersama between company and workers union.pkb for period is verified. Sighted the monthly salary record for Feb 2014, sampled for sterilizer operator, Bpk. Yuliasmi [ ] whom being deducted on insurance [accident, retirement, fatality &retirement] Rp 32, [2% from employee % from employer and for health insurance 0.5% from employee and 4.0% from the employer. The new salary paid in Feb 2014 along with the increment of Rp 140, and the overtime rate incurred. The company provides housing for both staff and workers. Facilities provided as: Mosque Electric subsidy till 900KwH Water Free School bus for children to go to school (Secondary school) 10 km ] with driver and attendant Polyclinic Kindergarten & Primary School is under the Yayasan Anwar Karim. Work agreement [for heavy equipment rental] No 001- HO/PT.AGR/P042/III/2013. Sighted: The contractor must provide insurance to their worker as per Indonesian law - Law UU 13 Environmental Law RSPOPC-SUM-REPORT.F01 OCT2013 Page 23 of 39

24 Safety & Health Law UU K3 ASA Policy no. MM-POD/01.01/1.3.3 title Kebebasan Berserikat dated on 15 April The policy is based on Indonesia regulation (UUD) 1945 item 28 & 28 E and Labour laws (Ketenagakerjaan No. 13 year 2003 item 104 says every workers have a rights to create or join a workers union. Estate management have implement monthly meeting with the workers union. Meeting between workers union with management held on monthly basis. Last meeting on 12 March Issue was raised such as delayed to pay the loan by management thru ATM machine. ASA Sighted the evidence of communication of the Policy for minimum age restriction dated signed by Director Mr.Lim Teong Kwee. Requirement of the staff and employee recruitment minimum age is 18 yrs. old. Randomly check of workers date of birth in records and not found any worker age below 18 in PT. Agrowiratama Sei Aur estate and in the mill. ASA Policy no. MM-POD/01.01/1.3.4 title Kesetaraan Kesempatan (equal opportunities) dated on 15 April 2008 is well implemented. Policy for equal opportunities sighted dated ; and a separate Discrimination policy dated Displayed and communicated. Signed by Director Mr. Lim Teong Kwee. Lowongan Kerja sighted include restriction through gender & perbedaan lainnya ; ASA Revised Sexual Harassment and Violence policy dated on 21/10/2013. Violence towards women mentioned in MM- POD/01.01/4.3.0 under Committee Gender procedure. Policy for protection of reproductive rights sighted dated Displayed and communicated. Gender committee established to implement the sexual harassment policy. Interviewed Gender Committee Head is Ms Ernawati and noticed that meetings and trainings conducted. Last minutes of meeting dated ; seen agenda on review of management plan 2014; Sexual Harassment and Violence case; Pregnancy & Breastfeeding. A SOP derived ref to AGR-SOP/01.01/5.4 under Committee Gender procedure; explaining procedures of sexual harassment & violence by identifying type of harassment & report to Gender committee within 24 hours & an investigation will be conducted by management team & if found guilty, discipline action will be taken. ASA Sighted the FFB price instruction from Pemerintah Provinsi Sumatera Barat [ref: 521.3/437.1/PPH.2/III-2014 dated on 28/03/2014. The listing indicates the palm from 3 years to 24 years [Rp 1.541,01 to Rp 1.873,40]. FFB prices are controlled by Authority of Sumatera Barat Province which will revise every month. Prices will communicate to Plasma farmers by circular on monthly. Ex: Latest circular from government dated on 28 March 2014 no. 525/K.688/2014. During mill visit, observed the price list display at main entrance [notice board at guard house]. Work agreement with PT Sejahtera No. 003/SPK/POM/XI/2013 for civil work for upgrading cooling pond; dated Work agreement is agreed both parties with term and condition is included into a contract. RSPOPC-SUM-REPORT.F01 OCT2013 Page 24 of 39

25 All the payment is made by financial Department in Central. Letter no. 001/SPK/POM/IV/2013 are acknowledgement from Financial Dept to mill as payment has been made. The payment amount is verified in estate s Annual Budget. Agreement sighted for 3 smallholders: 1). Ref: 001/KKPA-KSB1/I/2014, dated 02/01/2014 and represented by Bpk Nasran. 2). Ref: 002/KKPA-KSBSAMB/I/2014, dated on 02/01/2014 and represented by Bpk Ahmad Zirwan. 3). Ref: 001/KKPA-KSDBS/I/2014, dated 02/01/2014 and represented by Bpk Raspudin Aras. ASA The CSR program covers both the estate and mill. A list of breakdown seen along with the photograph evidences. Sighted the budgeted amount for CSR in year 2013 was Rp ,- and the realization was Rp ,-. As for 2014, it is budgeted for Rp ,-. In 2013, 28 CSR programme in infrastructure was done by the company. Samples as: Mosque renovation aid February 2013 Rp. 23, 000,000 Construction of religion education centre March ,200,000 Drainage construction at community field July 2013 Road maintenance for local community at Jorong Padang Timbalun April 2013 The budget for CSR is prepared by Head of Humas Plantations every years and be approved by estate director. CSR realization document on 2013 available and verified. Principle 7: Responsible Development of New Plantings Criterion by Audit Oil palm plantings are from the land purchased from the local Summary communities. These lands have been previously planted with other crops such as rubber, cash crops and shrub land. Hence there were no new plantings involving forest land. ASA Sighted the initial AMDAL covering the socio economy; culture and health of surrounding people who may be affected by plantation activities by company either from negative or positive impact. It is found that local authority has signed the letter as evidence. There is a smallholder development plan established at the time of assessment. ASA There is no new land surveyed for the growing of oil palm. However there are sufficient SOPs available for the soil and land type that being implemented at all operating units. A general soil map, slope classes map and elevation map, to provide a general recommendation for soil and water management practices to overcome soil limitations are available. ASA Maps are available to show that land clearing avoided identified HCVs. There was no forest areas converted since November The lands were on land purchased from the local communities land planted with rubber, cash crops and shrub land etc. ASA The company has prepared soil maps which include fragile soils, excessive gradients and peat soils. SOPs are in place to protect fragile and marginal soils. Terracing implemented above 6 as per the topographic map. Field inspection confirmed on the RSPOPC-SUM-REPORT.F01 OCT2013 Page 25 of 39

26 implementations. ASA SIAs and EIAs developed with participation form affected parties and include an analysis of both positive and negative impacts. ASA The company has a procedure to identify the people who may be entitled to receive compensation. ASA The company has a zero burning policy for preparing land for planting and has a procedure in place to respond to land burning on neighboring properties. Principle 8: Commitment to Continuous Improvement in Key Areas of Activity Criterion by Audit There are many improvement programs as mentioned in Summary respective principles published in their annual company presentation. Both mill and estates has sufficient records and documents to justify the achievements. ASA As part of improvement, many numbers of SOPs and PODs revised and effectively documented of the changes. The continuous improvement dated on 01/04/2014, divided into air quality measurement, waste water management, water usage in the mill, electricity usage for per ton of FFB, reduction in fossil fuel usage, reduction in chemical usage and POME. The chemical usage for water treatment plant and boiler. Sighted the monthly consumption for boiler -Nalco 3273, 22310, 2811 and Caustic Soda. As for water treatment plant, the use of Nalco 8173, Tawas/Alum and Salt Non Yodium : Summary findings for Scheme Smallholders (KKPA) KSBSAMB The assessment team conducted a thorough assessment of all the principles, criteria and indicators. Evidence was sought for conformity with the RSPO Indonesian NI of both systems and their implementation. The findings column reflects the findings in accordance with each criteria and indicator and the comments column includes some of the evidence found. (The full and complete checklist contains some confidential information and is an extensive document used for peer review and by the certification decision panel and certifier). Where non conformity was found, a summary of the non-conformity is included. Principle 1: Commitment to Transparency Criterion 1.1 Scheme Manager provide adequate information to other stakeholders on environmental, social and legal issues relevant to RSPO Criteria, in appropriate languages & forms to allow for effective participation on decision making. Documented both parties agreement between KKPA-KSBSAMB and PT. Agrowiratama (as scheme manager of the KKPA) is verified during the 4th annual surveillance audit. It is well implemented. The following both parties documentation were checked and verified during the 4th anuual surveillance audit: Document agreement no. 01/KSBSAMB/III/2004 and no. 036.Hm/AG/III/2004 dated on 11 March 2004; Legal permit established the KKPA-KSBSAMB no. 245/BH/KDK.32/XII/2003 dated on 29 December 2003; Criterion 1.2: Letter of the FFB price from the Ministry of Forestry and Agriculture no. 627/Kpts-II/98 dated on 11 September A document evident of land titlles for KKPA-KSBSAMB and applicable. The land of KKPA-KSBSAMB occupied total 500 Ha. It is accordance with the agreement. The letter of landtitles/smallholders by scheme manager (PT. Agrowiratama) to KKPA-KSBSAMB dated on 08 March SEIA (Analisa Dampak Sosial dan Lingkungan) for Smallholders is available. The survey was conducted by external consultant (AKSENTA) in April 20-26, Management documents are publicly available except where this is prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes. RSPOPC-SUM-REPORT.F01 OCT2013 Page 26 of 39

27 All legal permits are available publicly at the KKPA office, such as: land certificate (land title), Ijin Badan Hukum/ Akta Pendirian Perusahaan (article incorporation), DPPL (Social and Environmental Impact Assessment) incorporated in estate, TDP (Cooperative registration), Surat Ijin Usaha Perdagangan SIUP (Trading permit), Surat Ijin Tempat Usaha-SITU (Placing Operational Permit). The Work Agreement Contract Surat Perjanjian Kerjasama (Memorandum of Understanding) between KKPA KSBSAMB and PT. Agrowiratama was signed. Principle 2: Compliance with applicable laws and regulations The maps showing land allocation for KKPA (smallholders) is available per farmer group. The legal ownership of the land (land title certificates/sertifikat hak milik) from all individual farmer member are presented. Each farmer has 2 ha (average).e.d land title (land certificate) owned by Mr. Bosa (member of KKPA KSBSAMB). The land ownership is very clear. Sertifikat hak milik (SHM) from BPN (Badan Pertanahan Nasional). So far no claimed or contested land.interview with the farmers group so far there is no dispute. Not relevant to be verified as KKPA-KSBSAMB scheme applied.interview with scheme manager for KKPA-KSBSAMB that the lands acquired must be clear in the ownership as requirement before the MOU or agreement signed between company and KKPA. Land title is SHM (highest level), it is very clear in land ownership legal document.no indication customary land is available in KKPA plantation area. Principle 3: Commitment to long-term economic and financial viability. The scheme manager and cooperative prepared the budget for 3 years ( ), covering: productivity (ton/ha/year), cost of fertilizing (Rp/year), production estimate (ton/year), transportation cost and harvesting cost, those documents were approved by Leader of cooperative. Scheme Smallholders organization (cooperative) was involved in saving towards future replanting and for Corporate Social Responsibility (CSR) funds. Scheme smallholders received training from scheme managers in relating to the management plantation method to optimize continuous productivity, technical support, training and advice on best agriculture practices. Principle 4: Use of appropriate best practices by Scheme Manager Criterion 4.2 Practices maintain soil fertility at, or where possible improve soil fertility to, a level that ensures optimal and sustained yield. The fertilizer were supplied and managed by PT. Agrowiratama directly to smallholders as recommended by scheme managers. The record of type and volume of fertilizer application is available. Record of FFB production in smallholder s plantation maintained for last 5 years. Records are separated by each group, actual production and ton per hectare. Records showed increasing of production from Criterion 4.6 Agrochemicals are used in such a way that does not endanger health or the environment. There is no prophylactic use, and where agrochemicals are used that are categorized as World Health Organization Type 1A or 1B, or are listed by the Stockholm or Rotterdam Conventions, growers are actively seeking to identify alternatives, and this is documented The commitment management of mill and estate to implement permitted using agrochemicals regulated by The Minister of Agriculture is evident. Also using agrochemcals for Smallholders were registered. Its showing evidence on Daftar Penggunaan Bahan Kimia (Agrochemicals) Tahun 2014.There is one of agrochemicals for Rodentisida (Sime Ebor Baits 0.05 BB) with registration no. R is extremely dangerous. However, the comsumption is limited and well monitored controlling. Record of pesticide used is kept in estate office for smallholders and a monthly tabulation released for monthly comparison. It shown record of agrochemicals in March 2014, for HER META PRIMA 20 WDG a.i [Metsulfuron methyl 20%, LD 50 [mg/kg] 5000 Used 2.90 Kg/Ltr per Month > total a.i 0.58 per Month Planted area 500 Ha Pesticide [L/Ha] per Month Pesticide [L/Ton] per Month Pesticide Toxicity Unints [Kg/LD50/FFB] per Month RSPOPC-SUM-REPORT.F01 OCT2013 Page 27 of 39

28 The management of smallholders provided sufficiently working equipments concerning on safety. There list of safety equipments for smallholders workers on Pedoman Standard Alat Kerja dan APD Tahun 2014 Ref no. RGM I-HQ/100/IX/2013 dated on 21 September The management of smallholders well preparing to kept and disposed of pesticide containers accordance standard operation procedure (AGR-SOP/01.01/7.6 dated on 24 January 2008). Used agrochemical containers will be stored within 90 days before sent to waste collector company. The record of despacth used agrochemical is maintained and checked in place. No records available. There was no accident occured due to pesticide toxiciy for smallholder operators. The documented working instruction of pesticide spraying (IKA/22//AGR/2014) approved by management of PT. Agrowiratama dated on 02 January Total 66 workers (smallholder) were trained for limited pesticide in January 27, The training was done by Chief of K3 PT. Agrowiratama. Training record of limited pesticide for for Rodentisida (Sime Ebor Baits 0.05 BB) and MSDS Sime Ebor Baits 0.05 BB are available and checked in place. Principle 5: Environmental responsibility and conservation of natural resources and Biodiversity Criterion 5.1 Aspects of plantation and mill management that have environmental impacts are identified, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continuous improvement SIA (Social Impact Assessment) for Smallholders is available. The survey was conducted by external consultant (AKSENTA) in April 20-26, Environmental Impact Assessment (revision) documents (AMDAL document and RKL & RPL document) are available period and approved 25 January The environmental impact assessment and HIRA_OSH document covers scope for KKPA-KSBSAMB. Regular report on environmental management is presented. Letter of report submission to Envoronmental Dept officer (Badan Lingkungan Hidup) is available as evidence to report regularlyevery 6 month basis. Criterion 5.5 Use of fire for waste disposal and for preparing land for replanting is avoided except in specific situations, as identified in the ASEAN guidelines or other regional best practice Under scheme manager (PT. Agrowiratama) policy for zero burning on replanting. During this audit no replanting activity done. The management smallholders established a policy for zero burning for replanting. The policy was approved and signed by chief of KKPA-KSBSAMB dated on 27 September KKPA-KSBSAMB has fire fighting team and trained by scheme manager (PT Agrowiratama). The procedure (AGR-OSH/01.01/2.4, dated on 20 July 2012) trained to KKPA members by company.training was conducted in January 29, Record of emergency drill is available in place and checked. Fire extinguishers are provided in KKPA-KSBSAMB office. Estate (scheme manager) will support the complete equipmets if fire happened in KKPA-KSBSAMB area. Land preparation as company policy is Zero burning. For KKPA-KSBSAMB plantation area, replanting operation will be handled by scheme manager (PT Agrowiratama). Principle 6: Responsible consideration of employees and of individuals and communities affected by scheme smallholders Criterion 6.4 Any negotiations concerning compensation for loss of legal or customary rights are dealt with through a documented system that enables indigenous peoples, local communities and other stake holders to express their views through their own representative institutions No dispute was noted during this assessment. Criterion 6.6 The employer respects the right of all personnel to form and join trade unions of their choice and to bargain collectively. Where the right to freedom of association and collective bargaining are restricted under law, the employer facilitates parallel means of independent and free association and bargaining for all such personnel. The management established a policy of no restriction for workers and contractors to join unions for KKPA KSBSAMB (Koperasi Sawit Bosa Sungai Aua Manjunjung Bilang) that documented on Kebijakan Kebebasan Berserikat. The policy is approved and signed by Chief of KKPA-KSBSAMB dated on 12 March There are 34 persons as Member of KKPA-KSBSAMB involving joins to the union (PUK.SPPP-SPSI) since January Criterion 6.10 Scheme managers deal fairly and transparently with smallholders and other local businesses. Any complaints that received by smallholders from nucleus estate and other local business are not RSPOPC-SUM-REPORT.F01 OCT2013 Page 28 of 39

29 exist. However, there is complaint recorded on Saran-Saran Anggota dari KKPA. There have also feedback from third parties that recorded on Anjuran Instalasi Lain. The price of FFB is determined by local goverment (Pemerintah Provinsi Sumatera Barat Dinas Perkebunan) that documented on letter no /4371/PPH.2/III 2014 dated on 28 March The list of FFB prices base on planted years on table below Planted years Price of FFB (Rp) Planted years Price of FFB (Rp) 3 1, , , , , , , , , , , , There is document on the premium prices for FFB smallholders certified by letter of Estate Director no ref. ED/014/IV/2014, dated on 01 April These letter was communicated and socialized to all smallholders on April The management mill and estate will be paid for the FFB smallholders certified for Rp 3/Kg of FFB. Smallholder of KKPA-KSBSAMB organization chart is evident on Struktur Organisasi KSBSAMB dated on 06 July Berita Acara Rapat Anggta untuk Pemilihan Pengurus Koperasi Sawit Bosa Sungai Aua Manjunjung Bilang Nagari Sungai AUA Kec. Sungai AUA on July 06, Minute of meeting Rapat Anggota Koperasi KKPA-KSBSAMB is recorded on July 05, The evident is available of contract payment slip for KKPA (KSBSAMB) on March 2014; Payment of Jamsostek for KKPA on March 2014 is paid by Bank transfer (Pembayara Iuran Jamsostek Bulan Maret 2014). Payment slips of salary to smallholders (KKPA-KSBSAMB) on March 2014 for MS. Aldina (Up Keep), Salary is given amount Rp 1,492,000. According to Decree of governor Sumatera Barat No regarding Minimum payment of Sumatera Barat Province 2014 is, Rp. 1,490,000. She does member of jamsostek registered no since 09 November List employess of smallholder (KKPA KSBSAMB) 2014, Total of number KKPA KSBSAMB are 65 employees. The company did not conduct any credit of payment to smallholder. Instead, the credit is given internally to smallholders employees. There was evidence of road maintenance and transportation for smallholders FFB. The maintenance schedule of KKPA-KSBSAMB in January February 2014 for 2,490 Metres long for raod compacting works was done by road contractors (CV.Putra Hadia). These contractor has been evaluated and assessed to the competence criteria of contractor performance. The hand over letter of road compacting works is documented available on Berita Acara Pemeriksaan Hasil Kerja Kontraktor contract no. 005/KKPA-KSBSAMB/P011/II/2014. Records show the planting was done in 2005 (500 ha); next replanting is planned 25 years according to Agronomy Business Plan. Principle 7: Responsible development of new plantings Not applicable as no new planting has taken place. Principle 8: Commitment to continuous improvement in key areas of activity Criterion 8.1 Scheme Managers regularly monitor and review their activities and develop and implement action plans that allow demonstrable continuous improvement in key operations A continuous improvement plan has been incorporated in the annual budget which includes road improvement by grading compacting. 4.3 Non-conformity Raised During this Audit and Any from the Previous Year, if applicable This section gives an over view of new or revised non-conformities raised during this audit and of action taken to close out non-conformities raised during the previous audits, if applicable If a minor-non-conformity raised at the last audit, is not closed out, then this will be raised to Major status and the company given 60 days to close this out. RSPOPC-SUM-REPORT.F01 OCT2013 Page 29 of 39

30 The NC number is comprised of 2 parts to include the year in which the NC was raised as well as a sequential number Non-Conformities Identified during this Audit Non-were raised during this audit Non-Conformity Identified during the last ASA, not applicable for MA Non-were raised during the last audit as this is the Main Assessment Observations Raised During this Audit Non-were raised during this assessment. 4.4 Issues that were raised during the Stakeholder Consultation, if any Stakeholders were either informed by the client or by Control Union via the RSPO website. For Main Assessments, a 30 day Stakeholder consultation announcement is published on the RSPO website prior to the audit. The same announcement is circulated by the client prior to the audit For subsequent Annual Assessments, it is based on stakeholders reading the approved public summary reports available on the RSPO website, the client s procedures in receiving on-going feedback or if feedback was sent directly to Control Union prior to an audit or thorough RSPO complaints procedures. During each assessment, the audit team will review the company s implemented procedures in receiving feedback and will execute field visits and interviews. Not limited to the following questions, any feedback received is reviewed and summarized in this summary report for either Part 2 Partial Certification or Part 4 Assessment Findings above or noted below, if applicable: 1. Do you have any remarks on the RSPO standard? 2. What is your relation with the applicant? 3. Are there any plantation or mill management practices that affect you? 4. Do you consider any management is in conflict with the RSPO principles and criteria? 5. Do you have any suggestions for management? 6. Are you aware of any HCV in the plantations or in adjacent land? 7. Are you aware of any endangered or rare species? 8. Are there any adverse (or positive) effects on local communities? 9. Additional comments? 11. Do you have any comments about the assessment team and would you like to meet with them? 12. Do you have any comments for the client s management of any other plantations? Company response and Subject raised Audit team findings proposed action to be taken PART 5: RSPO SUPPLY CHAIN CERTIFICATION The palm mill mentioned in the scope of the audit was audited against the requirements of the following: RSPO Supply Chain Certification Systems. November 2011 RSPO Supply Chain Certification Standard. November POM Included In The Scope Of The Audit Name Mill Palm Oil Mill Capacity Location Supply Chain Model (POM) MT/Hour Address (IP or SG or MB) PT Agrowiratama 45 Jorong Aie Aji, Nagari Sungai Aua, Kecamatan Sungai Aua, Kabupaten Pasaman Barat, Propinsi Sumatera Barat, Indonesia. IP, SG, MB RSPOPC-SUM-REPORT.F01 OCT2013 Page 30 of 39

31 5.2 Confirmation Of The Company s Summary Of Annual Certified Volume Of RSPO Certified Palm Oil And Palm Kernel Over A Specified Period Product CU Code CPO (MT) PK (MT) Specified 12 month period POM 1 47,983 11,996 Forecasted volume from June 2014 June Summary Report Including A Brief Description Of The Scope Of Certification Based on the information from marketing, the Buyer will send Surat Kuasa Pengangkutan to the mill for necessey despatching. On despatch day, the appointed logistic driver will pass the D/O to the security guard which will let the security guard issu the Izin Masuk that to be sign by mill manager. Before the despatching, the security guard and despatch staff will inspect the vehicle by using Berita Acara Penimbanga and Berita Acara Pemeriksaan Kenderaan nrespectively that will permit to fill in the CPO. Later the despatch staff to take sample for laboratory inspection and perform the sealing. Finally the load to be weighted and ticket printed for reference. 5.4 Monthly Records of Certified and Uncertified FFB Received Since the Last Audit If this is the 1st Main Assessment, the figures used are from the last 12 months. If this is an Annual Surveillance Assessment, the figures used are since the last audit. No MONTH-YEAR Certified Supply Bases (MT) Uncertified Supply Bases (MT), if any Total (MT) 1 April , , May , , June , , July , , August , , September , , October , , November , , December , , January , , February , , March , , TOTAL 204, , Monthly Records of Certified CPO and PK Produced Since the Last Audit If this is the 1st Main Assessment, the figures used are from the last 12 months. If this is an Annual Surveillance Assessment, the figures used are since the last audit. No MONTH-YEAR Certified CPO (MT) Certified PK Total (MT) 1 April , , May , , June 013 4, , , July , , , August , , , September , , , October , , , November , , , December , , January , , , February , , March , , , TOTAL 48, , , RSPOPC-SUM-REPORT.F01 OCT2013 Page 31 of 39

32 5.6 Records of Certified CPO & PK Sold under UTZ etrace to Buyers since the Last Audit, if Any No Buyers Name UTZ etrace Trading No Certified CPO (MT) Sold 1 PT Wira Innomas TR-b3795da5-67aa PT Wira Innomas TR-cce04f87-54f PT Wira Innomas TR-f6dea424-4ad3 1, PT Wira Innomas TR-f0aeab96-2c95 1, PT Wira Innomas TR-9640b2eb-9ec Certified PK (MT) Sold 5.7 Non-Conformities Identified during this Audit Timeline for compliance: 1. All non-conformances observed during an audit shall be classified as major since all requirements for Supply Chain certification have to be met before granting certification. 2. For Main Assessments, all non-conformances shall be addressed satisfactorily by the operation before certification may be granted by the certification body. If non-conformances are not addressed within three (3) months of the audit, a full re-audit shall be required. The certification body shall assess the effectiveness of the corrective and/or preventive actions taken before closing out the non-conformances. 3. For Annual Surveillance Assessments, non-conformances raised after the certification are serious (i.e. must be considered as a major) and the integrity of the RSPO Supply Chain Certification is at risk. A maximum of one month is to be given to the certified client to satisfactorily address the non-conformance. The certification body shall assess the effectiveness of the corrective and/or or preventive actions taken. Should the nonconformance not be addressed within the one-month maximum timeframe, a suspension or withdrawal of the certificate and a full re-audit may be necessary. 4. If no non-conformances are observed at an audit or when the corrective action plan has satisfactorily addressed raised non-conformance(s), the client shall be recommended for (re-) certification. Non-were raised during this audit. 5.8 Description of the Organizational Management Systems Including organizations, management and operational systems to ensure compliance with the RSPO Supply Chain Certification Systems and Standards as detailed above The management continually improving the established RSPO Supply Chain standards since the main assessment. As part of continuous improvement, many trainings being planned in the mill. etrace data management is managed by HQ [Medan]. 5.9 Final Certification decision by Control Union for the RSPO SCCS Audit of the POM Recommendations made: Summary of noncompliances: Nil Certification status of client: The POM included in the scope of this audit demonstrated full compliance with the RSPO SCCS. With effect from the certification date given in the RSPOPC certificate, this POM mentioned in the scope of this report is considered to be certified in accordance with the RSPO SCCS. PART 6: CERTIFIED ORGANISATION S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY 6.1 Date of next ASA The provisional date for the next ASA is: Nov Date for Closure of Non-Conformities All major NCs to be closed by: No NC raised RSPOPC-SUM-REPORT.F01 OCT2013 Page 32 of 39

33 All minor NCs to be closed by: No NC raised 6.3 Signing by the Client I the undersigned, being the most senior relevant management representative of the operation seeking or holding certification, agree with the contents and audit findings as presented in this document. I also confirm: Acceptance of liability in execution of the instructions given. That this company was made aware that the findings of the audit team are tentative; pending review and decision making by the duly designated representatives of Control Union Certifications. That during the closing meeting all agenda items was covered by the Lead Auditor. Acknowledged by: Name: Position: Dr. Gan Lian Tiong. Head of Sustainability Date: 11 June, 2014 Signature 6.4 Signing by the Lead Auditor I the undersigned, being the Lead Auditor, confirm that this report is an accurate record of the findings and of the closing meeting. I further confirm that the summary of the findings as presented in this report are a true representation of the actual findings of the audit team. Acknowledged by: Name: Mahaswaran Maliyapan Position: Lead Auditor Date: 17/04/2014 Signature 6.5 Signing by the Certifier I the undersigned, being the Certifier, confirm that the information and conclusions included in this report have been prepared in good faith and that the certification decision has been based upon this information. Acknowledged by: Name: Position: Gerben Stegeman Certifier Date: Signature RSPOPC-SUM-REPORT.F01 OCT2013 Page 33 of 39

34 PART 7: APPENDICIES Appendix 1: Location Map for this Certification Unit From 1.9, the location map(s) Map 1: Map showing the location of estates (PT. Agrowiratama) in Indonesia.. RSPOPC-SUM-REPORT.F01 OCT2013 Page 34 of 39

35 Map 2 : Map showing the location of PT Agrowiratama in West Sumatra, Indonesia. Map 3 : Map showing the location of PT. Agrowiratama estate and palm oil mill with surrounding entities. RSPOPC-SUM-REPORT.F01 OCT2013 Page 35 of 39

36 RSPO Principles & Criteria Map 4: Map showing the location of Scheme Smallholder KSB Map 5 : Map showing the location of Scheme Smallholder KSBSAMB RSPOPC-SUM-REPORT.F01 OCT2013 Page 36 of 39