RSPO PRINCIPLES & CRITERIA PUBLIC SUMMARY REPORT ANNUAL SURVEILLANCE ASSESSMENT 3 PKS MAJU ANEKA SAWIT 2014

Transcription

1 RSPO PRINCIPLES & CRITERIA PUBLIC SUMMARY REPORT ANNUAL SURVEILLANCE ASSESSMENT 3 Indonesia PKS MAJU ANEKA SAWIT 2014 Report prepared by: Mahaswaran (Lead Assessor) Certification decision by: Nurhadi (Certifier) Gerben Stegeman (revised version ) 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. RSPO Membership Number RSPO Approval Date 12/01/2006 Affiliate Membership RSPOPC-SUM-REPORT.F01 MAY 2014 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 Location of the Supply Base Statistics of the Supply Base and Estimated Tonnes of FFB produced per year Percentage of Planted Oil Palm by different Age Ranges 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)... 6 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 NON-CONFORMITY RAISED DURING THIS AUDIT AND ANY FROM THE PREVIOUS YEAR, IF APPLICABLE Non-Conformities Identified during this Audit None raised during this audit Non-Conformity Identified during the last ASA None raised during the last audit Observations Raised During this Audit None raised during the last audit ISSUES THAT WERE RAISED DURING THE STAKEHOLDER CONSULTATION, IF ANY RSPOPC-SUM-REPORT.F01 MAY 2014 Page 2 of 39

3 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 FFB, CPO AND PK SINCE THE LAST AUDIT RECORDS OF CERTIFIED CPO & PK SOLD UNDER GREEN PALM TO BUYERS SINCE THE LAST AUDIT, IF ANY RECORDS OF CERTIFIED CPO & PK SOLD UNDER UTZ E-TRACE TO BUYERS SINCE THE LAST AUDIT, IF ANY NON-CONFORMITIES IDENTIFIED DURING THIS AUDIT DESCRIPTION OF THE ORGANIZATIONAL MANAGEMENT SYSTEMS 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 MAY 2014 Page 3 of 39

4 PART 1: SCOPE OF THE CERTIFICATION ASSESSMENT AUDIT 1.1 Company and Contact Details Company Name: PT Maju Aneka Sawit, PT Globalindo Alam Perkasa dan PT Multipersada Gatramegah. Business Address: Spring Tower 04-42, Jl. K.L. Yos Sudarso, Tanjung Mulia, Medan Deli, Medan, Sumatera Utara 20241, Indonesia Contact Person: Dr. Gan Lian Tiong Office Telephone: Other Certifications Held: ISCC 1.2 RSPO Membership & Certification Details RSPO Membership Number: (PT MAS, PT GAP & PT MPG are subsidiaries of PT Agrowiratama) Registered Client Name: PT. Agrowiratama Certificate Number: CU-RSPO Start Date Of Certificate: June, 17 th 2011 End Date Of Certificate: June, 16 th 2016 Date Of Original Certification: June, 17 th 2011 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: May, 19 th - 24 th 2014 Audit Number: ASA 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 E S Maju Aneka Sawit POM Desa Tanah Putih, Kecamatan Telawang, Kabupaten Kotawaringin Timur, Propinsi Kalimantan Tengah,Indonesia 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 Projected Production from the last 12 Months (MT) Actual Production for this Audit Year 2014/2015 (MT) Projected 12 Months (MT) Forecast Certified in this Report FFB CPO PK FFB CPO PK FFB CPO PK RSPOPC-SUM-REPORT.F01 MAY 2014 Page 4 of 39

5 202,949 54,796 12, , , , , , , Note : System for IP, SG and MB mechanism is in place in Maju Aneka Sawit POM. 1.7 General Description of Supply Base PT Maju Aneka Sawit has a palm oil mill and its supply bases - Estate Tanah Mas, Kas Desa Tanah Putih, Kas Desa Penyang and supply base from PT Globalindo Alam Perkasa Estate Alam Sahara and PT. Multipersada Gatramegah - Estate I. The revised RSPO P&C 2013 (Generic) was used to assess the palm oil mill and estates. The area of oil palm planted is 14, ha. The mill processing capacity is 45 ton FFB per hour Location of the Supply Base Oil Palm Location GPS reference Area Summary (Ha) OPP Plantation Name Address Longitude Latitude Total Mature OPP1 Desa Tanah Putih, Tanah Mas Kecamatan Telawang, Estate E S Kabupaten Kotawaringin 6, , (PT. Maju Aneka Timur, Propinsi Kalimantan Sawit) Tengah, Indonesia OPP2 OPP3 OPP4 OPP5 Alam Sahara Estate (PT Globalindo Alam Perkasa) Estate I (PT Multipersada Gatramegah) Kas Desa Tanah Putih Kas Desa Penyang Desa Natai Baru, Kecamatan Mentaya Hilir Utara, Kabupaten Kotawaringin Timur, Propinsi Kalimantan Tengah, Indonesia Jalan Negara (Muara Teweh - Puruk Cahu) KM 32, Desa Karamuan, Kecamatan Lahei, Kabupaten Barito Utara, Propinsi Kalimantan Tengah, Indonesia Desa Tanah Putih, Kecamatan Telawang, Kabupaten Kotawaringin Timur, Propinsi Kalimantan Tengah, Indonesia Desa Penyang, Kecamatan Telawang, Kabupaten Kotawaringin Timur, Propinsi Kalimantan Tengah, Indonesia E E E ' 18.06" E ' 10.46" S S S 2 26' 44.74" S 2 31' 16.0" Statistics of the Supply Base and Estimated Tonnes of FFB produced per year 3, , , TOTAL 14, ,325.1 RSPOPC-SUM-REPORT.F01 MAY 2014 Page 5 of 39

6 OPP Oil Palm Plantation Estimated FFB/Year (MT) Planting Years Cycle (Years) OPP1 Tanah Mas Estate (PT. Maju Aneka Sawit) 164, OPP2 Alam Sahara Estate (PT Globalindo Alam Perkasa) 61, OPP3 Estate I (PT. Multipersada Gatramegah) 5, OPP4 Kas Desa Tanah Putih OPP5 Kas Desa Penyang TOTAL 231, Percentage of Planted Oil Palm by different Age Ranges OPP Planting Years by 5 year Ranges Total OPP1 5, (91.51%) (8.49%) 6, (100%) OPP2 2, (65.98%) 1, (34.02%) 3, (100%) OPP3 1, (32.45%) 2, (67.54%) 4, (100%) OPP (100%) (100%) OPP (100%) (100%) Total 9, , , (67.93%) (32.07%) (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 Tanah Mas Estate and Estate 1 have been choosen to be visited during the audit period and 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 They are under supervision of PT. Maju Aneka Sawit. They have same sources as estates and the management is supervised by PT. Maju Aneka Sawit. So that it can be assured that the smallholders comply with RSPO P&C Standard. 1.9 Location Map for this Certification Unit (See Appendix 1) RSPOPC-SUM-REPORT.F01 MAY 2014 Page 6 of 39

7 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 Yes/No If Yes 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? Is the certified operation part of a simple structure of 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? b. A statement of commitment to comply with the 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, estates and palm oil mills? Is the parent company or one of its majority owned and / or managed subsidiaries a member of RSPO. RSPOPC-SUM-REPORT.F01 MAY 2014 Page 7 of 39 No Section 2 is N/A Go to Yes Go to Go to Go to Go to Go to 2.4 Go to Yes Go to 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 - Major is not possible to conduct an effective audit against the rules for partial certification There is no statement of commitment to comply with the spirit of the - Major RSPO for all companies within the company structure There is no time bound plan in place for the certification for all - Major subsidiaries, estates and mills No applicable membership of the RSPO. - Major 2.3 Summary of the Time Bound Plan Section Requirement Findings and any action required Does the plan include all subsidiaries, estates and mills? No subsidiary under PT. Maju Aneka Sawit (All subsidiaries under PT. Agrowiratama are RSPO certified) Is the time bound plan challenging? Age of plantations. Location. Mill development. N/A. Yes

8 Infrastructure. Compliance with applicable law Have there been any changes since the last audit? N/A. Are they justified? If there have been changes, what circumstances N/A. have occurred? Have there been any stakeholder comments? N/A Have there been any newly acquired subsidiaries? No new acquisition Have there been any isolated lapses in the N/A. implementation of the plan? Has there been any systematic failure to proceed N/A. with the implementation of the plan? General statement as to progress made since the last audit? N/A. 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 Did the company conduct an internal audit? If so, N/A. has a positive assurance statement been produced? No replacement after dates defined in NI Criterion 7.3 of: N/A. p primary forest. A any area identified as containing High Conservation Values (HCV). A any area required to maintain or enhance HCVs in accordance with RSPO criterion Any new plantings since January 1 st 2010 must comply with the RSPO New Plantings Procedure. PT Agrowiratama Tahap I, PT Mulia Indah, PT Agrowiratama Tahap II in Sambas, West Kalimantan and PT Globalindo Alam Perkasa Estate Alam Murni, PT Multipersada Gatramegah in Central Kalimantan complied with the RSPO NPP (RSPO NPP for PT Agrowiratama Tahap I was done on 5 6 January 2011, PT Mulia Indah was done on July 2011, PT Globalindo Alam Perkasa Estate Alam Murni was done on December 2012, PT Agrowiratama Tahap II was done on December 2012 and PT Multipersada Gatramegah was done on December 2012) Any Land conflicts are being resolved through a N/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 N/A. mutually agreed process, in accordance with RSPO criterion Any Legal non-compliance is being resolved in N/A. RSPOPC-SUM-REPORT.F01 MAY 2014 Page 8 of 39

9 accordance with the legal requirements, with reference to RSPO criteria 2.1 and Summary of the findings for Partial Certification The audit team assessed compliance with the above requirements during this audit. Failure to address any non-compliance identified may lead to certification suspension. N/A 2.6 Partial Certification Audit Agenda Date Location Agenda N/A - 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. 3.2 Audit Team Lead auditor: Mahas Team member 1: Hangga Prihatmaja Team member 2: Mohd. Rizal Md. Kassim Team member 3: Muhd. Jamalul Arif Team member 4: Intan Kurniatiningsih I 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; Successful 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 Qualifications Post graduate qualification in agriculture with more than 5 years working experience in plantation. More than 5 years working experience in plantation. Involved in RSPO auditing since 2010 and fully trained under similar programs such as Global Gap, Organics, etc. Involved in RSPO assessment since November Member of CUC RSPO audit team. Involved in audits conducted in Malaysia and Indonesia. Completed ISO 9001:2008 lead auditor course in July Successfully completed RSPO Lead Auditor Course. Member of CUC RSPO audit team since November Involved in audits conducted in Malaysia and Indonesia since November 2010 in 10 different companies in Malaysia and Indonesia. SA8000 qualified. Post graduate qualification in agriculture with more than 5 years working experience in plantation. RSPOPC-SUM-REPORT.F01 MAY 2014 Page 9 of 39

10 experience and at least 3 audits at different organizations. RSPO endorsed lead auditors course. Completed RSPO Lead Auditor training in 2011 Signed code of conduct. Yes General knowledge of: RSPO P&C standards. Yes CUC organizational structure. Yes CUC quality systems. Yes Lead auditor role. Yes Report writing. Yes Stakeholder consultation. Yes Certification decision process. Yes RSPO SCCS program manual. Yes CUC filing systems. Yes Correct use of RSPO trademarks. Yes History and objectives of RSPO. Yes CV available. Yes Completion of CUC RSPO lead auditor training. Completed & Passed RSPO Lead Auditor training in Qualifications of the Assessment Team RSPO Requirement Team Member Name Qualifications Fluent in main local languages and English. Mahas Hangga Prihatmaja Mohd. Rizal Md. Kassim Muhd. Jamalul Arif Intan Kurniatiningsih Fluent in both English and Bahasa Malaysia Fluent in English and Bahasa Indonesia Fluent in both English and Bahasa Malaysia Fluent in both English and Bahasa Malaysia Fluent in English and Bahasa Indonesia Field working experience in the palm oil sector, or a demonstrable equivalent. Hangga Prihatmaja Mohd. Rizal Md. Kassim Muhd. Jamalul Arif Intan Kurniatiningsih Have worked more than 8 years in the palm oil industry, fully trained in RSPO auditing and well versed with occupational safety and health. More than 5 years working experience in forestry and manufacturing firm. Involved in FSC auditing since 2008 and fully trained in RSPO auditing. Undergraduate in plantation background. Involved in RSPO auditing since 2010 and experience in similar auditing field such as GMP B2 and Global Gap. Workers welfare issues and social auditing experience. Environmental and ecological auditing. Good agricultural practices (GAP), integrated pest management (IPM), pesticide and fertilizer use. Hangga Prihatmaja Mohd. Rizal Md. Kassim Muhd. Jamalul Arif Have worked more than 8 years in the palm oil industry, fully trained in RSPO auditing and well versed with occupational safety and health. More than 5 years working experience in forestry and manufacturing firm. Involved in FSC auditing since 2008 and fully trained in RSPO auditing. Undergraduate in plantation background. Involved in RSPO auditing since 2010 and RSPOPC-SUM-REPORT.F01 MAY 2014 Page 10 of 39

11 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). Intan Kurniatiningsih Hangga Prihatmaja Mohd. Rizal Md. Kassim Muhd. Jamalul Arif Intan Kurniatiningsih Hangga Prihatmaja Mohd. Rizal Md. Kassim Muhd. Jamalul Arif Intan Kurniatiningsih Hangga Prihatmaja Mohd. Rizal Md. Kassim Muhd. Jamalul Arif Intan Kurniatiningsih experience in similar auditing field such as GMP B2 and Global Gap. Workers welfare issues and social auditing experience. Environmental and ecological auditing. Have worked more than 8 years in the palm oil industry, fully trained in RSPO auditing and well versed with occupational safety and health. More than 5 years working experience in forestry and manufacturing firm. Involved in FSC auditing since 2008 and fully trained in RSPO auditing. Undergraduate in plantation background. Involved in RSPO auditing since 2010 and experience in similar auditing field such as GMP B2 and Global Gap. Workers welfare issues and social auditing experience. Environmental and ecological auditing. Have worked more than 8 years in the palm oil industry, fully trained in RSPO auditing and well versed with occupational safety and health. More than 5 years working experience in forestry and manufacturing firm. Involved in FSC auditing since 2008 and fully trained in RSPO auditing. Undergraduate in plantation background. Involved in RSPO auditing since 2010 and experience in similar auditing field such as GMP B2 and Global Gap. More than 7 years of auditing experience for agricultural standards such as RSPO, Organics, Textiles, Recycle, Global Gap and GMP. Have worked more than 8 years in the palm oil industry, fully trained in RSPO auditing and well versed with occupational safety and health. More than 5 years working experience in forestry and manufacturing firm. Involved in FSC auditing since 2008 and fully trained in RSPO auditing. Undergraduate in plantation background. Involved in RSPO auditing since 2010 and experience in similar auditing field such as GMP B2 and Global Gap. Workers welfare issues and social auditing experience. Environmental and ecological auditing. Economic issues. Hangga Prihatmaja Have worked more than 8 years in the palm oil industry, fully trained in RSPO auditing and well versed with occupational safety and health. RSPOPC-SUM-REPORT.F01 MAY 2014 Page 11 of 39

12 Mohd. Rizal Md. Kassim Muhd. Jamalul Arif Intan Kurniatiningsih More than 5 years working experience in forestry and manufacturing firm. Involved in FSC auditing since 2008 and fully trained in RSPO auditing. Undergraduate in plantation background. Involved in RSPO auditing since 2010 and experience in similar auditing field such as GMP B2 and Global Gap. Workers welfare issues and social auditing experience. Environmental and ecological auditing. 3.3 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. 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 RSPOPC-SUM-REPORT.F01 MAY 2014 Page 12 of 39

13 Date Location Main activities 22/05/2014 MAS POM 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 Tanah Mas Field operations. Estate / Estate Worker interviews 1 Chemical stores Workshops Housing Medical Schools Local communities Environmental MAS POM Supply Chain Certification Assessment of the POM (RSPO SCCS) Mill inspection Workshops Stores POM application Document review Field operations (as above) Tanah Mas Estate/Estate 1 Partial Certification Review with client representatives Field operations (as above) Field operations (as above) 24/05/2014 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 are as per the above table 1.5 and and were assessed in the field, office, facilities, store and document review which have been carried out in accordance to the RSPO principles and criteria. Common systems were identified and specific evidence was recorded for individual estate and mill. Interviews with Estate Managers, Mill Manager, committee and members of workers union took place in both formal and RSPOPC-SUM-REPORT.F01 MAY 2014 Page 13 of 39

14 informal environments and worker interviews were conducted in both estates and in the mill. There were no complaints received during the field assessments and during interviews with the external stakeholders. Up to the time of writing this report, there were neither feedbacks nor comments received from the other external stakeholders and community leaders. No non-compliance found during the audit. The mill is in full compliance against the RSPO Supply Chain Certification Systems requirements as described under PART 5 below. It is therefore the recommendation of the lead assessor that: Signed: A certificate of compliance is maintained. Name: Mahas Date: 24/05/ 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 Requests made by stakeholder were responded to and all these are well Audit documented. Relevant documents are made publicly available. The mill and Summary estates have demonstrated full compliance to Principal 1. ASA3 1.1 MAS POM and estates have procedures in place to handle Information Request from any interested parties with the implementation of POD no. MAS-POD/01.01/4.7 titled Permintaan Informasi Dan Kunjungan Stakeholders dated on 23 May Request and responses were handled by HUMAS department. Record of any information request was recap in logbook titled Record of Information Request and Response document no. MAS-SHC/02.01/1.1. From period May 2013 April 2014 record can be summarized as: - Legal 20 - Environment 1 - Social Nil - OSH Nil - Land disputes Nil - Others 2 Legal Land title, land user right and others. Environment ANDAL document, RKL/RPL Documents. Social Social activities record. OSH Safety and Health documentation. Land Disputes Measuring, negotiation and land claims. Others Stakeholders visit and etc. RSPOPC-SUM-REPORT.F01 MAY 2014 Page 14 of 39

15 Record of request sighted and included in logbook as above. Action taken for response to each request was maintained includes staff who receive the request, from which department, date of response, Information and document were given and signature of both parties. Sighted logbook document no. MAS-SHC/02.01/1.1 & MAS-SHC/02.03/1.1. Besides it was sighted that there was a request to carry out water sampling for inlet and outlet of palm oil mill drainage system on 26/03/14 by LABKESDA(Laboratory of district) was received by Mr. Benyamin (HUMAS). Records for all the above documents kept in retention for 2 years before being transferred to group document centre. (According to POD no. MAS- POD/01.01/1.4.0 & no. MM-POD/01.01/6.3.0) titled Period of Record keeping and Retention. ASA3 1.2 MAS and supply bases have procedures to handle Information Request from any interested parties with implementation of POD no. MAS-POD/01.01/4.7 titled Permintaan Informasi Dan Kunjungan Stakeholders dated on 23 May Records of any information request was recapped in logbook titled Record of Information Request and Response document no. MAS-SHC/02.01/1.1. From period May 2013 April 2014 record can be summarized as: - Legal 20 - Environment 1 - Social Nil - OSH Nil - Land disputes Nil - Others 2 ASA3 1.3 MAS POM and supply bases have all the document records and it is being in retention for 2 years before being transferred to group document center. (According to POD no. MAS-POD/01.01/1.4.0 & no. MM-POD/01.01/6.3.0) titled Period of Record keeping and Retention Besides MAS POM and Tanah Mas estate have policy titled Code of Ethics no. MAS-POD/01.01/1.2.8 & MM-POD/01.01/ dated on 02/05/2014 well implemented. The policy was developed based within the framework of the UN Convention Against Corruption, in particular Article 12. Contents of the policy include: - Respect of Human Right - Comply with the legal requirement - Commitment to Transparency codes - Respect for fair business ethics (Corruption) Policy was communicated to all staff and workers by displaying and socialization. Latest socialization dated on 8 May 2014 for all staff in POM and for estate workers held on 14 May 2014, trained by Mr. Iskandar (sustainability staff) & Mr. Rahmad Barus (Audit and Certifications Staff). The socialization was combined with several input such as: - SOP for complaint and grievances - POD for Code of Ethics - SOP for social disputes - POD for Human Rights RSPOPC-SUM-REPORT.F01 MAY 2014 Page 15 of 39

16 Principle 2: Compliance with Applicable Laws and Regulations Criterion by The mill and estates have demonstrated compliance to all applicable local, Audit national and international laws. Legal ownership of land and its land use is Summary clearly demonstrated through the respective land titles. Boundaries have been clearly demarcated. There have been no land disputes or claims involving the mill and estates. ASA3 2.1 In MAS and the estates it is sighted the permit for Palm Oil Industries (IUP) No /517/VIII/EKBANG/2005 dated on for the mill activities within the land areas as stated in the land title. Mill productivity is 45 ton FFB/hour. Also sighted the correspondence land title No. 41 and No. 46/HGU/BPN RI/2007 dated on on and for the land areas about ,77 Ha acknowledged as PT. Maju Aneka Sawit (MAS) and its supply base. Valid until Sighted the permit for Palm Oil Industries (IUP) No /492/VI/EKBANG/2006 dated on for the mill activities within the land areas of ±8.017,806 Ha. Mill productivity is 45 ton FFB/hour. Also sighted the correspondence land title No. 45 and No. 69/HGU/BPN RI/2007 dated on and for the land areas about 7.663,789 Ha acknowledged as PT. Maju Aneka Sawit (MAS) and its supply base. Valid until MAS has two land title by means that they are operating the palm oil activities within those total land areas. However for the second permit there are dispute of total areas between IUP and the land title. The dispute is solved by an official letter titled the Treaties Committee of Land Assessment B No. 89/PPTB/VIII/2006 dated on The treaties is stating the dispute solved by re-measuring the land areas and observed that the dispute was happening due to areas adjacent directly to the river must not be included in the land title and has to be enclaved. At MAS and Tanah Mas Estate it is also Sighted the document titled List Legal Correspondence Permit Humas consists of all applicable permits for Palm Oil industries. Updated three-monthly by PR departement, last updated on Period I year 2014 (January-March). Signed on Then sighted the document of Recap of the Analyzes of Regulations Applicable in Indonesia, updated per semester. Last update for July- December 2013 signed on Choosen the example to be analyzed is the Government Regulation No. 27 year 2012 about the Environmental Permit acknowledged on Another example sighted for the analyzes on Presidential Instruction No. 10 year 2011 about the Suspension of New Permit and the Action of Perfecting the Governance of Primary Natural Forest and Peat Areas. This analyzes is acknowledged on Continued by looking the document of the updated IUP, the company is on going proccess to obtain the updated IUP regarding the stating the mill capacity. Sighted the document No. 032/HM/MAS/IV/2014 about the Revision/Changing for Upgrading the Mill Production Capacity on the IUP for PT. Maju Aneka Sawit dated on This is an official letter from the company to the Regent of Kotawaringin Timur District for stating the mill capacity to 90 ton FFB/hour Now, the company is awaiting the finalization from the government. ASA3 2.2 Actually there are no changes in MAS POM areas. Besides the boundary RSPOPC-SUM-REPORT.F01 MAY 2014 Page 16 of 39

17 stones are clearly maintained. For Tanah Mas estate, the boundary stones are well maintained. It is sighted and verified during the field visit. So that there are no land conflicts anymore. However for the community land inside the estate areas, they are already solved. It can be seen through the Social impact assessment which was included in RKL-RPL document as above. All input from assessment was abstracted from several consultation activities with the community such as held on July, 3 rd 2013 by HUMAS Department involving surrounding stakeholders from local community, government body representatives, smallholders, neighboring plantation. Social consultation meeting was held on 03/07/2013 participated by stakeholders from : - Desa Sebabi - Desa Kenyala - Desa Hanjalipan - Desa Tangar - Desa Baampah. Besides the company has policy system MAS-SOP/01.01/5.1 & MAS- SOP/03.01/3.9.0 titled Keluhan & Komplain Eksternal dated on 2 May 2014 to resolve any dispute in effective, timely and appropriate manner. For internal complaint, SOP no. MAS-SOP/01.01/6.1 & MAS-SOP/03.01/ titled Keluhan & Komplain Internal. Finally the company has procedures to handle land compensation which is publicly available to all interested parties. Procedure no. MAS-SOP/01.01/1.3 titled Penanganan Permasalahan Lahan latest revision on 15 April Last revision made on section 1.16 additional signature required Kepala adat/suku to approve the original name of land. ASA3 2.3 For MAS there are no changes in the POM areas. For Tanah Mas estate it is sighted the maps of land enclaved goes to the community. Example: Mambo. S (Land claim agreement: 001/MAS- TM/03/2014) was signed by both parties on 13 March Details of land compensated: 4.57 Ha (Rp. 45,700,000). The compensation have been paid by the negotiation from Rp. 12 million/ha and finally agreed for Rp. 10 million/ha. The solving of problem is based on policy MAS-SOP/01.01/5.1 & MAS- SOP/03.01/3.9.0 titled Keluhan & Komplain Eksternal dated on May, 2 nd 2014 to resolve any dispute in effective, timely and appropriate manner. For internal complaint, SOP no. MAS-SOP/01.01/6.1 & MAS-SOP/03.01/ titled Keluhan & Komplain Internal. Besides, the company has procedures to handle land compensation which is publicly available to all interested parties. Procedure no. MAS-SOP/01.01/1.3 titled Penanganan Permasalahan Lahan latest revision on April, 15 th Last revision made on section 1.16 additional signature required Kepala adat/suku to approve the original name of land. For both MAS and Tanah Mas Estate that needs input from assessment was abstracted from several consultation activities with the community such as held on July, 3 rd 2013 by HUMAS Department involving surrounding RSPOPC-SUM-REPORT.F01 MAY 2014 Page 17 of 39

18 stakeholders from local community, government body representatives, smallholders, neighboring plantation. Principle 3: Commitment to Long-Term Economic and Financial Viability Criterion by The annual budget and 2 years projections for the mill and estates that details Summary Audit revenue and costs are available. ASA3 3.1 There is an annual working plan. It is documented in Master Copy Verifiers for RSPO P&C Compliance, ISPO P&C Compliance, and ISCC Requirements Economic for Estate and Palm Oil Mill Operations MAS-RSPV/02.01/1.2. It consists of aims and scope, economic policy, economic indicators, OER and KER improvement strategies, estate strategies, sustainability improvement plan, management review procedures, training plan, CPO quality, FFB tonne production, implementation and operation. The business management plan contains attention to quality of planting materials, FFB yield trend, OER trends, cost of production, forecast prices and income. The strategies to improve OER and KER performance are FFB quality by grading, controlling process, mill working improvement, trainings. The strategies used to reach high yields are seed management, yield for new plants, planting, plant maintenance. Yield improvement factors are estate access, harvesting organisations, aunditing and monitoring, collecting and transporting. Meanwhile, there is no annual replanting programmee so far because the age of plant is in the average of nine years. For ten years ahead, the cost is still covered by the production. Principle 4: Use of Appropriate Best Practices by Growers and Millers Criterion by The mill and estates have a complete set of SOP strictly adhered to and Audit continuously monitored. Soil fertility is being maintained in the fields and erosion prevention is constantly carried out. IPM is being implemented in all Summary the estates and the use of chemicals are in accordance with the regulations. There is a comprehensive OSH policy and is being implemented throughout the estate and mill. There are some inconsistencies with HIRARC and an observation was raised for this aspect. Trainings are being carried out as per the Annual Training Plan. ASA3 4.1 The mill has all its SOP in place and these SOP covers all mill operations from FFB reception right until mill effluent treatment. These SOP details the procedures to run each mill operations in an efficient and safe manner. These SOPs are implemented through maintenance and record keeping of forms and data for, FFB incoming records, boiler smoke density records, sterilizer temperature and time records, steam flow record, water usage records, chemical test records, process control, production report & CPO stock inventory, spare parts inventory records and so on. Estates have the Group Agricultural Policy, which contain all sub sections of the process from nursery, land clearing, land conservation, distance of planting, maintenance, pest control, fertilizer application and harvesting (MAS-POD/02.01/2.0). Random checked with : GAP Planting POD/01.01/2.2.1 Revision 1 dated 10/05/2013- covering plantation from land clearing. GAP Nursery - POD/01.01/2.1.1 Revision III dated 26 October 2013 GAP - Drainage POD/01.01/2.2.3 issued on 15 August GAP- Conservation Area POD/01.01/2.3.1 Revision I dated 02 Feb GAP Harvesting POD preparing before harvesting, cutting, harvested and Pruning RSPOPC-SUM-REPORT.F01 MAY 2014 Page 18 of 39

19 ASA3 4.2 Soil surveys and foliar sampling were carried out by JH Agricultural Services on an annual basis. Records of these were shown in the estate offices. Through these surveys and analysis, the optimum fertilizer to be used is recommended to cover the nutrient deficiencies that may exist for the palms. Application of EFB is also recommended to reduce the usage of inorganic fertilizers. Checks on the records of fertilizer application indicate the fertilizer application is done based on the recommendations. Soil maps such as the general soil map, slope classes map and elevation map are also available and presented. These maps are used to provide general recommendations for soil and water management practices and to identify solutions to overcome soil limitations. ASA3 4.3 Soil erosion is prevented through the following methods: The planting of cover crops such as Mucuna bracteata and Pueraria javanica. The areas being planted with these cover crops are recorded in the monthly record books and marked on maps. The presence of road maintenance program. These road maintenance program detail the type of road maintenance works to be carried out in each estate block and the cost involved in doing so. Budgets and actual expenditure for road maintenance works were presented. The application of EFB and frond stacking on slopes. These not only minimizes erosion but also enhances soil fertility. Control of soil erosion is in accordance with the guidance stipulated in the SOP. Soil maps and topography maps that clearly state the elevation and types of soil are also available in the estate offices. ASA3 4.4 Riparian zones are maintained along the main rivers and green conservation belt is visible in field inspection. A 50 meter zones were maintained on the left and right side of the river. Sign boards are available to demarcate the buffer zones. There are no bunds, weirs nor dams that have been constructed along waterways in the estates. Field visits to the estates confirmed this fact. For the mill, the FFB processing water analysis carried out every 6 months, with results are within the parameters. Rainfall data is collected and monitored on a daily basis. There are no water drainage into protected areas. Water management plans for the mill and estates were sighted. ASA3 4.5 IPM plan is documented as per the Good Agricultural Practices which includes beneficial planting and the use of biological control as opposed to chemical control of pests. Planning and realization of IPM program were monitored by mapping the beneficial plant to be planted with types of plant. The plans are monitored by daily completion of planting, expressed in meter of plants planted. The locations where barn owl cages are built are also mapped in each field and monitoring are carried out by census where it records the division, area size, block no, month erected, box no, development stages of the owls(eggs, immature, mature), box condition, condition around the box. The establishment of beneficial plants and barn owl breeding are measures taken in assisting the control of leaf pest and rat populations. Trainings are given to all staff on IPM. Pesticide toxicity units are monitored by each active ingredient and it is calculated based on LD 50(Mg/Kg), chemical usage, total Ai used, Ha planted, FFB produced, pesticide usage (L/Ha), L/ton and finally result shown in Pesticide toxicity units monitored (Kg/LD 50/FFB) in monthly basis and to date. ASA3 4.6 The company only use the agrochemicals approved by WHO and local authority. The chemicals used for the targeted species are proven by the records. All wastes are disposed through an agent named PT. Nazar where it RSPOPC-SUM-REPORT.F01 MAY 2014 Page 19 of 39

20 holds the valid permit. During the interview with the workers in fields, most of them are able to understand the content of SOP. During the inspection, the store are in proper condition complete with bund, good ventilation, sufficient spillage kits such as saw dust, rags, mop, bilingual [English/Bahasa]MSDS or CSDS in place at suitable locations. The list of pesticide used (approved by WHO) for estates has been updated on April 2014 and approved by estate managers. The company has stopped using paraquat since 01/01/2011. All other chemicals used and in stock are under class II and below. Only circle, spot and path spraying and confirmed no aerial application. Annual Medical Surveillance for 2013 was done for all the sprayers, manuring gang, storekeepers and mill laboratory workers. Medical surveillance records were shown in the mill and estate offices. There are no pregnant workers who were handling pesticides in the estates. CHRA for the mill and estates were conducted and all recommendations of the CHRA were adhered to. The quantity of active ingredient of pesticides and herbicides used are recorded and are kept for at least 5 years. ASA3 4.7 The mill and estates adhere to the Safety and Health Policy of the Musim Mas group. The mill and estate have conducted HIRARC for their operations. The risk assessment covers all existing activities in estate. The HIRARC includes identification of the hazards, its impact, risk analysis for probability and severity, recommended risk control and person in charge for implementing the recommended controls. Trainings for workers to ensure safe working practices for the handling of chemicals and pesticides are carried out periodically and documentation of these trainings are recorded with the training agenda, attendance lists and photographs. PPE issuance records for each worker were complete with the type of PPE issued, date and signature of the workers upon receipt of the PPE. These records were shown in the mill and both estates. PPE issued is in tandem with the HIRARC and company policy. Safety and health committee meetings were held once in 3 months. These meetings discussed workplace inspection, workers medical check-up, PPE usage and accident prevention, OSH policy, review of health hazards in selective operations, review of chemical health risk assessment (CHRA), annual medical surveillance as per CHRA, safety performance, training on safety and health, safety barriers, emergency and response plan. The personin-charge of OSH is the estate and mill manager. Estate has Safety Committee with representative from all levels of workers. There are workers who are trained in first aid by the doctor and Hospital Assistants in the estates. The mill and estates have first aiders present in the mill and field. First aid boxes were available and filled with the necessary medications. Records of accidents are maintained by the mill and estates. All workers are covered with JAMSOSTEK insurance and proof of payment and claims in the event of an accident was shown in the mill and estate office. ASA3 4.8 The mill and estates have a comprehensive annual training plan for its staffs and workers. The training plan for 2014 was presented. Trainings conducted were recorded in the various trainings record books and it was complete with attendance records, training materials and photographs of the training. The mill and estates conducted trainings, among others, for: The appropriate use of PPE First aid and fire drill RSPOPC-SUM-REPORT.F01 MAY 2014 Page 20 of 39

21 The implementation of SOP for operations such as harvesting, pruning and manuring Safe handling of chemicals and fuels Hazard identification, risk assessment and control (HIRARC) Principle 5: Environmental Responsibility and Conservation of Natural Resources and Biodiversity Criterion by Environmental Impact Assessment has been carried out by the mill and Audit estates. A comprehensive identification of all waste has been recorded and Summary scheduled disposal of waste has been carried out by an approved and registered collector. Monitoring and analysis of waste is carried out regularly. ASA3 5.1 At MAS and Tanah Mas estate it is sighted the environmental management (RKL/RPL) and its monitoring activities. Document No. 127 year 2009 dated on Updated per semester (Sighted Semester II July-December 2013). 1. Head of the Local Agency of Environment for Central Kalimantan Province under the official letter No.011/HM/MAS/II/2014 dated on Head of the Local Agency of Environment for Kotawaringin Timur District under the official letter No.012/HM/MAS/II/2014 dated on Head of the Local Agency of Social Workers and Transmigration for Kotawaringin Timur District under the official letter No.013/HM/MAS/II/2014 dated on Head of the Local Agency of Liasion, Communication, and Information for Kotawaringin Timur District under the official letter No.017/HM/MAS/II/2014 dated on Head of the Local Agency of Forestry for Kotawaringin Timur District under the official letter No.014/HM/MAS/II/2014 dated on Head of the Local Agency of Health for Kotawaringin Timur District under the official letter No.012/HM/MAS/II/2014 dated on Head of the Local Agency of General Workers for Kotawaringin Timur District under the official letter No.015/HM/MAS/II/2014 dated on Head of the Local Agency of Fisheries and Ocean for Kotawaringin Timur District under the official letter No.018/HM/MAS/II/2014 dated on Besides the company conducts wildlife monitoring assesment based on habitat type on monthly basis. Sighted the document for period March The document is already stating the classification of wildlife assessed under CITES, IUCN, and Government Regulation No. 7 year Besides sighted the social impact assessment and its monitoring and management plan. Then since a part of MAS areas are consisting of peat, the monitoring activities to prevent the negative impact is conducted. It can be seen by the weekly monitoring report dated on which is showing the peat water level. If the water level is not in line with the water level range (50-70 cm), it is an indication that the situation of peat is in problem. Then the direct activities to solve the problem is carried out. Besides annually the R&D department is doing a monitoring activities to see whether major changes or minor changes is happening. And the result of annual monitoring is incorporated into the report of 2013 Annual Agronomy Report for PT. MAS Estate Tanah Mas No. MEMO/187/R&D-KLMT/VI/2013-CH. ASA3 5.2 It is only applicable for estate. It is also known that the person incharge is Mr. RSPOPC-SUM-REPORT.F01 MAY 2014 Page 21 of 39

22 Iskandar Arief Hidayatsyah Ritonga for the environmental aspect. At the estates the HCV assessment has been carried out by third party organization named Aksenta on December And already classifying the species based on the status under CITES, IUCN, and Government Regulation No. 7 year Besides the company is conducting the Data Collecting of the Presence of Fauna and Flora to see the differences between before and after the plantation activities. Sighted the report for year Then the company is also doing a water quality monitoring in the river which are passing the estates areas. It is been carried out per three-monthly basis and concluded yearly. Last monitoring was on April, 22 nd -24 th Based on the monitoring report the results will be incorporated into a Monitoring and Management Plan for HCV. Through this document it can be seen that there are several activities to preserve the identified ERT s flora and fauna, such as socialization to the management, socialization to the community, identifying the owner of customary land within the land title, etc. ASA3 5.3 The waste collection are done together and they have only one documents kept in MAS POM. Sighted the document titled Identification of the Source of Waste from the Mill and Domestic. Last updated on Besides it is ruled in the working contract between MAS and the collector under the contract document No. 001/I/MAS-NAZAR/2014 dated on For all hazardus wastes are collected by an authorized collector named. PT. Nazar. Sighted the authorization from the Ministry of Environment No. 122 year 2010 dated on about the License of the Collection on Hazardous Waste. Sighted the last collection for MAS was on Collected were: 1. Used oil for 5 drums 2. Used metal drum for 21 drums. 3. Used smart plastic drum for 4 drums. 4. Used batteries N150 for 300 Amp. 5. Used batteries N100 for 400 Amp. 6. Used batteries N70 for 140 Amp. 7. Used batteries N50 for 450 Amp. 8. Used ally container for 468 pcs. 9. Used galoon container for 57 pcs. 10. Used agristick container for 20 pcs. 11. Used PPEs for 191,8 Kgs. 12. Used jeriken for 52 pcs. 13. Used centatin container for 36 pcs. 14. Used regent container for 1 pcs. ASA3 5.4 At MAS and estates, the recapitulation of energy and fuels are incorporating in one document belong to the MAS POM. It is sighted the document of Recap on Using of Fuel year 2013 signed on and year 2014 until April. For year 2013 the renewable energy used are EFB (0,53 ton/ton CPO), Fiber (0,46 ton/ton CPO), and Shell (0,07 ton/ton CPO). And year 2014 until April 2014 the renewable energy used are EFB (0,52 ton/ton CPO), Fiber (0,49 ton/ton CPO), and Shell (0,05 ton/ton CPO). Since January 2014 the company is using PME (Palm Methly Esther) to replace the usage of Diesel. The ratio in using the PME is 0,11 litres/ton CPO. RSPOPC-SUM-REPORT.F01 MAY 2014 Page 22 of 39

23 Depicting for Tanah Mas Estate: 1. Jan 2014: 311,61 litres 2. Feb 2014: 62 litres 3. Mar 2014: 290,57 litres 4. Apr 2014: 346,14 litres ASA3 5.5 It is applicable only for estate. Sighted the document of Biogas Plant. It can be evidenced that since the electricity for the whole units (POM and estates) are supplied from the electricity produced by the biogas plant. At year 2013 Biogas uses for engine are NM 3 and for flaring are NM 3. Since January until April 2014 Biogas uses for engine are NM 3 and for flaring are NM 3. At year 2013 the biogas used to generate the electricity are from 2 engines: 1. Engine 1: kwh 2. Engine 2: kwh Since January until April 2014 the biogas used to generate the electricity are from 2 engines: 1. Engine 1: kwh 2. Engine 2: kwh Then at year 2013 engine consumption of biogas are in average of 0,409 NM 3 /kwh, besides for since January-April 2014 the engine consumption of biogas are in average of 0,385 NM 3 /kwh. Besides, sighted the document for MAS POM of Recap on Using of Fuel year 2013 signed on and year 2014 until April. For year 2013 the fossil energy used is only Diesel (0,26 litre/ton CPO). Since January 2014 the using of Diesel is 0 litre due to usage of PME as a substitution. And it can be depicted that the diesel oil is stopped to be use since January However there are still small notifications regarding the using of diesel oil due to purchasing from the outside estate. At Tanah Mas Estates there are no replanting activities, so that no fire has been used. Besides the company has a policy of zero burning activities. However, there was fire incident in several areas during the year 2013 up to February Example, sighted the minute meeting of land burning which was happening on No. 002/PT.MAS-EST.TM/II/2014. According to the minute meeting the land burning was happening within the company s land Division H Block P62. The land burning was immediately reported to the police officer according to the police report document No. SK/07/II/2014/POS SEBABI dated on The subject liable for the land burning is still on investigation by the police. Sighted the procedure for emergency response on Preventing and Controlling the Land Burning No. MAS-SOP/01.01/9.6 dated on Through this procedure the steps taken by the company is appropriate. Another action to prevent the land burning is by installing the environmental warning board consisting of an information Prohibited to Open the Land by Burning. This board is installed in Block L56/57. Evidenced through a minute RSPOPC-SUM-REPORT.F01 MAY 2014 Page 23 of 39

24 meeting dated on Then the occurence of land burning is compiled on the report of the Analyzes the Land Burning Activities, updated six-monthly. Sighted the report for Semester II year This is a part of monitoring activities of land burning and the necessary steps to be taken. ASA3 5.6 At MAS and estates it is sighted the document titled Identification of the Source of Waste from the Mill and Domestic. Last updated on Then the company management has all polluting assessments, identification of significant pollutants and GHG emissions and all chemical cointainers are disposed responsibly (legal collector). Principle 6: Responsible Consideration of Employees and of Individuals and Communities by Growers and Millers Criterion by Environmental Impact Assessment has been carried out by the mill and Audit estates. A comprehensive identification of all waste has been recorded and Summary scheduled disposal of waste has been carried out by an approved and registered collector. Monitoring and analysis of waste is carried out regularly. ASA3 6.1 At MAS and estates there is company initial AMDAL established on 2 February 2009 (document no. MAS-AMD/02.01/1.3). Monitoring document of RKL & RPL was provided per semester to the Department of Environment Kabupaten Kotawaringin Timur as per legal requirement in Indonesia. Latest RKL-RPL document sighted dated on July December 2013 (evidence document sent: Letter no. 012/HH/MAS/II/2014) dated 12 February The document can be summarized as: Chapter 1: Initial Company identity, location and activities, activity description and environment improvement. Chapter 2: Implementation and Evaluation RKL & RPL aspects 1) Physic & Chemistry component 7 aspects 2) Biological component 1 aspect 3) Social, Economy & Culture 4 aspects 4) Community health component 3 aspects 5) Evaluation Trend Evaluation, Critical Level Evaluation and Compliance Evaluation. Chapter 3: Summary of Assessment. - Positive i) Improvement in job vacancy and community income ii) Improvement in community per family economic aspect. - Negative i) Perception of community land in the area will decrease from company plantation activities. Management action plan To provide sufficient information to community all activities is accordance to the law & regulation and controlled. Further, CSR aid is yearly review to benefit the stakeholders surround the company. ii) Potential of road accident from FFB truck movement Management action plan: Established OSH committee & management plan to mitigate and reduce the risk. Stakeholder social consultation meeting was held on July, 3 rd 2013 participated by stakeholders from : - Desa Sebabi RSPOPC-SUM-REPORT.F01 MAY 2014 Page 24 of 39

25 - Desa Kenyala - Desa Hanjalipan - Desa Tangar - Desa Baampah Then company has established Social Impact Assessment (SIA) prior to the participation of smallholders of Kas Desa Tanah Putih and Kas Desa Penyang on Management plan & monitoring every year was included in SIA report for MAS and its estate as above.. This initial SIA was developed in December 2009 by AKSENTA (document no. MAS-SIA/02.01/1.0) for whole operation units in PT. MAS. Monitoring of SIA was conducted every year were linked to the RKL-RPL documents. Latest monitoring plan for SIA sighted on period January December Besides the Social Impact Assessment was included in Environmental management and monitoring plan (RKL-RPL) document as above. All input from assessment was abstracted from several consultation activities with the community such as held on 3 July 2013 by HUMAS Department involving surround stakeholders from local community, government body representatives, smallholders, neighboring plantation. ASA3 6.2 At MAS and Tanah Mas estate there is procedure no. MAS-SOP/01.01/8.8 & MAS-SOP/03.01/ titled Program Konsultasi Berkala Dengan Stakeholder dated on June, 5 th 2013 well maintained and implemented in all operation units. Also the list of stakeholders available and updated in April Stakeholders list was maintained from type of stakeholders such as: - Neighboring traditional community 7 villages. - Government body Kabupaten KOTIM (Kota Waringin Timur) 9 statues - Workers Union 1 - NGO/Reporter 3 - Supplier 10 - Bank 1 - Contractors 3 - Hospitals 2 - School 2 All the input from assessment was abstracted from several consultation activities with the community such as held on July, 3 rd 2013 by HUMAS Department involving surround stakeholders from local community, government body representatives, smallholders such neighboring plantation. Dedicated staff for HUMAS is Mr. Benyamin. Job description sighted no. MM- SOP/01.01/ includes for consulting and communicating with local communities. ASA3 6.3 MAS POM and estates have policy system MAS-SOP/01.01/5.1 & MAS- SOP/03.01/3.9.0 titled Keluhan & Komplain Eksternal dated on May, 2 nd 2014 to resolve any dispute in effective, timely and appropriate manner. For internal complaint, SOP no. MAS-SOP/01.01/6.1 & MAS-SOP/03.01/ titled Keluhan & Komplain Internal. And procedure to handle land compensation is publicly available to all interested parties. Procedure no. MAS-SOP/01.01/1.3 titled Penanganan RSPOPC-SUM-REPORT.F01 MAY 2014 Page 25 of 39

26 Permasalahan Lahan latest revision on April, 15 th Last revision made on section 1.16 additional signature required Kepala adat/suku for approve the original name of land. Then at MAS POM and estates, all records of complaint and grievances was combined for all issue from external body. For internal, each units have their own complaint book. No complaint or grievances in period of this assessment recorded. Last complaint received was in May However for the internal complaint at MAS it is evidenced that there is no complaint received during this assessment period. Last complaint was in May Log book record no. MAS-C&G/02.01/1.1. Besides for Tanah Mas estate there are also no complaint received during this assessment period. Last complaint received on July ASA3 6.4 MAS and Tanah Mas estate has a procedure to handle land compensation which is publicly available to all interested parties. Procedure no. MAS- SOP/01.01/1.3 titled Penanganan Permasalahan Lahan latest revision on April, 15 th 2014 for revision made on section 1.16 additional signature required Kepala adat/suku for approve the original name of land. Also sighted and SOP for Ganti Rugi Lahan no. MAS-SOP/01.01/1.0. Then it is sighted the record of identification is maintained in file name Ganti Rugi Lahan. People who identified to pay compensation is recorded in each file includes all the details and document related to the compensation process. Record is kept by year as summarized below: 2014 (to date April 4 persons (19.1 Ha). Example as: Mambo. S (Land claim agreement: 001/MAS-TM/03/2014) was signed by both parties on 13 March Details of land compensated: 4.57 Ha (Rp. 45,700,000). Negotiation is from Rp. 12 million/ha and finally agreed for Rp. 10 million/ha. Besides, payment has be made by cash to the owner. Evidence of payment sighted on receipt no (Rp. 12,156,000) & A (Rp. 33,544,000) dated on March, 13 th ASA3 6.5 At MAS POM and Tanah Mas estate the pay rate for workers is determined by Regional Minimum Wages (UMK) & Minimum Wages of Regional Sector (UMSK) for year Decision letter no /953/2013 by Central Kalimantan Governor date on 20 January 2014 has approved minimum wages for 2014 is Rp. 1,908,525 for industrial sector. Sighted for MAS the evidence from workers payslip for April 2014, Samsul Arifin ( ) position as FFB receiving Station get Rp. 2,032,400 and fixed work incentive Rp. 120,000 and fixed family incentive Rp. 132,000total gross monthly income is Rp. 2,284,400 Then for Tanah Mas estate the workers payslip name: 1. Kispan ( ) as harvester get Rp. 2,045,525 + incentive total salary for April 2014, Rp. 3,967, Workers payslip name, Sri Maryuni (Female) as spraying mandor gets Rp. 2,138, incentive for April Contractor worker name, Suratmin payslip sighted on Feb 2014 basic salary Rp. 2,893,333. Contractor name CV. Pelita Indah. RSPOPC-SUM-REPORT.F01 MAY 2014 Page 26 of 39

27 Regarding the contract for MAS and Tanah Mas estate, the contract verified for workers. Workers understood contract. Contracts included the wages rate, leave, public holiday pay condition, sick leave, maternity leave, insurance, housing and etc. Sighted an evidence for MAS which is a contract of Samsul Arifin joined work on October, 8 th All details are available in the contract. And for Tanah Mas estate the workers contract sighted, Kispan dated on September, 28 th 2010 as harvesting Mandor. Details include working time and others term and regulation was included in contract. Also workers contract sighted, Sri Maryuni dated on October, 5 th 2009 as spraying Mandor. Details include working time and others term and regulation was included in contract. The MAS Tanah Mas estate provides electricity and treated water for all workers housing for free. Infrastructure provided including mosque, recreation place, kindergarten and crèche. Yayasan Anwar Karim primary school was provided for all children. Medical facility is available at Clinic and transportation for school children at Desa Tanah Putih high school daily provided for free. Furthermore regarding the sub contract in MAS, it is sighted the contract agreement between PT MAS & PT. Cipta Electric Kreasindo agreement no. 008/PKS MAS-CP/XII/2013 sighted. Also for Tanah Mas estate it is sighted contract agreement term and condition Section 5: Right and Condition to Contractor mentioned in issue no. 3: Contractor must abide with Labour Law of Indonesia includes in Safety & Health and Minimum wages (UMSK & UMK). Example: Contractor name CV. Asri Jaya Mandiri (agreement no. 002-HO/PT.MAS/II/2014). Sighted particularly for the contractor at Tanah Mas estate it is evidenced that the payment of fixing the lining tree work by contractor name, Sugianto sighted date on 29 March 2014 payment receipt evidence. Total payment is Rp. 15,118,500 after tax deduction (4.0 %) from agreed contract. The document is signed by both parties, PT.MAS and contractor. ASA3 6.6 MAS and Tanah Mas estate have a policy for freedom of association no MAS- POD/01.01/1.3.3 was displayed and communicated with all level or workers. For MAS there was a worker union meeting held on monthly basis. Last meeting between management and workers union held on May, 7 th Minutes of meeting evidence sighted issue discussed as: - Housing repaired issue Management takes an action immediately through the maintenance department. - Holiday for workers worked for 3 shift Management will revised the working day schedule at POM - Hand phone and airtime for biogas operator Management will provide hand phone and airtime for biogas operator. Internal workers union meeting held on 03/05/2014 bring the issue as above. Any issue from internal will bring up to meeting with the management. And for Tanah Mas estate the last workers union meeting was held on April, 24 th 2014 with minutes of meeting available. Meeting was attended by 18 personnel from management and 24 personnel from workers. No any RSPOPC-SUM-REPORT.F01 MAY 2014 Page 27 of 39

28 pending issue was sighted. Internal meeting held on April, 11 th ASA3 6.7 At MAS and estates, the policy of minimum age was well maintained and displayed. Also was sighted POD no. MAS-POD/01.01/1.2.7 Requirement of the staff and employee recruitment. Then random selected workers file verified no workers less than 18 years old was hired. ASA3 6.8 At MAS and estates there is policy of equal opportunities no. MAS- POD/01.01/1.3.4 titled Kesetaraan Kesempatan well maintained and displayed at mill and estates office. Socialization of policy is communicated by training to workers. Also sighted is the implementation of the policy above from salary level between male and women workers is at the equal level. Furthermore, workers position promotion is in accordance to the work performance. Interview with workers verified the policy is well implemented. ASA3 6.9 There is sexual harassment policy dated on October, 21 st 2013 has been communicated and publicly displayed in units office. Also they have a policy of Human Reproductive Protection dated on March, 13 th 2012 has been communicated and publicly displayed in units office. For the gender committee, it was combined for all units in PT. MAS. Sexual harassment policy was communicated during the meeting. Gender meeting was conducted every 3 month last meeting attended by total 17 representatives from each operating units on March, 15 th Gender committee is chaired by Mrs. Rika. Committee Gender activity program also available includes activity such as regularly meeting Every 3 month, Socialization gender committee to staff and workers every 3 month (issue bring up includes sexual harassment, violence, breastfeeding and reproductive protection), Socialization of reproductive disease and others. Socialization gender committee to housewife - annually through house to house visit was implemented by distributing Gender Committee flyers which contains information such as contact number, complaint procedure and issue that can be reported to gender committee. Then, grievance mechanism available accordance to SOP no. MAS- SOP/01.01/5.4 & MAS-SOP/03.01/ ASA At MAS the FFB price were displayed at weighbridge at entrance of the mill and was also displayed at scheme smallholders. Smallholders also can access to this prices at mill office since it was classified as publicly available document. Then the pricing mechanism is controlled by local Agricultural Department of Kalimantan Tengah Province on monthly basis. For May 2014, letter date on April, 24 th 2014 (no. 525/1930/PPH/Disbun) was tabulated to all smallholders. Price mechanism is based on palm oil ages from 3 till 22 years palm oil tree. FFB prices calculation as accordance with Agriculture ministry RI no: 17/Permentan/OT.140/2/2010. ASA MAS and Tanah Mas Estate have CSR program which is combined to all operating units in PT. MAS. CSR budget is developed every year with implementation recorded within 3 months period. Overview of last year CSR program (2013) as per below: RSPOPC-SUM-REPORT.F01 MAY 2014 Page 28 of 39

29 Jan-March 2013 Rp. 39,240,000. April-June Rp. 158,530,400 July-Sept 2013 Rp. 203,275,634 Oct-Dec 2013 Rp. 246,140,718 - E.g CSR program based on result of consultation with proposal letter from Desa Tanah Putih community date on July, 24 th 2013 Request for fish seed - Subsequently from proposal, sighted letter from estate office to HQ office date on August, 20 th 2013 (Ref. 046/GM-HM/VIII/2013) to proposed the fund total Rp. 6,325,000 - Letter dated on August, 22 nd 2013, to inform the respective stakeholder proposal acceptance by management as per request amount. - Stakeholder receives the CSR on September, 12 th Also PT. MAS with cooperation with the Department of Agriculture gives the free consultation to community to carry out the fish cages project. - The benefit is to improve the economical aspect of surrounding community. Other CSR program realization from period Jan-March 2014 are: - Educational aid to Yayasan Anwar Karim VI school - Religious festival support - Road maintenance for local community - Sport and recreation fund support - Maintenance of church at neighbor community villages. - Total Jan-March 2014, Rp. 123,057,264 ASA According to the Policy of Human Rights established on 2 May 2014 Policy no. MAS-POD/01.01/ & No. MM-POD/01.01/ section 2: MAS and Tanah Mas estate was committed for not using trafficking and forced labor and contract substitution in any Musim Mas Group. No chances of contract substitution. ASA According to the Policy of Human Rights established on 2 May 2014 Policy no. MAS-POD/01.01/ & No. MM-POD/01.01/ section 2: MAS and Tanah Mas estate was committed for not using trafficking and forced labor and contract substitution in any Musim Mas Group. Group also respects established workers union and collective bargained activity. Policy was communicated to all staff and workers by displaying and socialization. Latest socialization dated on 13 May 2014 for all staff in POM and for estate workers held on 14 May 2014, trained by Mr. Iskandar (sustainability staff) & Mr. Rahmad Barus (Audit and Certifications Staff) The socialization was combined with several input such: - SOP for complaint and grievances - POD for Code Ethic - SOP of social disputes - POD for Human Rights Principle 7: Responsible Development of New Plantings Criterion by Oil palm plantings are from the land purchased from the local communities. Audit Summary These lands have been previously planted with other crops such as rubber, cash crops and shrub land. ASA3 7.1 AMDAL and Dokumen Pengelolaan dan pemantauan Lingkungan DPPL is RSPOPC-SUM-REPORT.F01 MAY 2014 Page 29 of 39

30 made available. Reporting of every six month for both estates and mill through RKL/RPL. Latest UKL/UPL carried out for 2 nd semester of ASA3 7.2 Soil surveys carried out by JH Agriculture Services. The conclusion of the survey report is that the result of the survey reveals that the soils in PT MAS have no major limitation to oil palm growth. ASA3 7.3 There were no forest areas that have been converted since November The lands were on land purchased from the local communities land planted with rubber, cash crops and shrub land etc. The company has carried out HCV assessments internally and by Aksenta consultant before planting. HCV maps are available. For Kas Desa Tanah Putih and Penyang, HCV and SIA were carried out before land clearing of Kas Desa. These documents are available and sighted. Management plans and monitoring plans were developed based on the HCV consultants recommendations and these were inspected during the document review. The management plan of HCV updated every year and monitoring of HCV is conducted by monthly. Also refer to HCVs described in criterion 5.2. ASA3 7.4 As per JH Agriculture recommendation, there are no fragile soils. Terracing implemented above 6 as per the topographic map. Field inspection confirmed on the implementations. ASA3 7.5 AMDAL, Dokumen Pengelolaan dan pemantauan Lingkungan and Laporan Penilaian Dampak Sosial (social impact assessment) indicating positive and negative impact. ASA3 7.6 No customary right land identified. Procedure of negotiating includes land value, compare with company set value, and negotiating takes place between two parties, if agreed by both parties then negotiation done by Humas, & approved by GM Humas to identify the land title is under the claimant. Procedure of negotiating includes land valuation, company set values, and negotiation protocol between two parties. ASA3 7.7 Zero burning policy is in place and implemented. Principle 8: Commitment to Continuous Improvement in Key Areas of Activity Criterion by All the operating units are regularly monitoring and review their activities and Audit develop and implement action plans that allow demonstrable continual Summary improvement in key operations such as in minimizing use of certain pesticides, environmental impacts, maximizing recycling and minimizing waste or by-products generation, pollution prevention plans. ASA3 8.1 There is an improvement plan for PT. Maju Aneka Sawit for It consists of environment, economic, solar fuel reduction, B3 waste reduction, domestic waste management. It is made annually and reviewed quarterly. The programs are building sanitation for spraying workers, CDM projects, market building, minimizing solar and fuel use, using PME, B3 waste management, domestic waste management. Environmental impact analysis including COD, BOD, Dissolved Oxygen, Phospat, Nitrat, Ammonia and salinity Continous improvement plans are B3 waste reduction with collecting all waste and selling them to government legal collector, domestic waste reduction. All waste products and sources of pollution are well identified and documented. There is a system to identification, monitoring and reporting. RSPOPC-SUM-REPORT.F01 MAY 2014 Page 30 of 39

31 The documents are consisted of description and maps. It is signed by the staff audit and certifications Continous Improvement plans are Pollution and emissions are monitored and decreased by using Clean Development Mechanism. In the other hand, diesel usage is reduced by using palm methyl ester. The company management has all polluting assessments, identification of significant pollutants and GHG emissions and all chemical cointainers are disposed responsibly (legal collector). Also there is an improvement plan consisting of economic, social and environment. The improvement plan will be reviewed and reported every three months. Building fiber burning places. It is aimed for drying fiber. Dried fiber will make burning easier and without releasing carbon. 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. 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 None raised during this audit Non-Conformity Identified during the last ASA None raised during the last audit Observations Raised During this Audit None raised during the last audit. 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? RSPOPC-SUM-REPORT.F01 MAY 2014 Page 31 of 39

32 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? Subject raised Company response and Audit team findings proposed action to be taken Nil Nil Nil 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) Desa Tanah Putih, Kecamatan PKS Maju Aneka Telawang, Kabupaten Kotawaringin 45 Sawit Timur, Propinsi Kalimantan Tengah, IP Indonesia 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 62, , Forecasted volumes between July 2014 to June See also 1.6 above. 5.3 Summary Report Including A Brief Description Of The Scope Of Certification A full RSPO SCCS certification audit was used during this annual assessment and the findings support the certification based on supply chain model listed above. 5.4 Monthly Records of Certified FFB, CPO and PK Since the Last Audit If this is the 1 st 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 Certified CPO (MT) Certified PK (MT) (MT) 1 May , , June , , July , , August , , September , , October , , November , , , December , , , January , , February , , RSPOPC-SUM-REPORT.F01 MAY 2014 Page 32 of 39

33 11 March , , , April , , , TOTAL 206, , , Records of Certified CPO & PK Sold under Green Palm to Buyers since the Last Audit, if Any If this is the 1 st 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. The transactions were sighted form the clients registered Green Palm Account. Certified CPO No Buyers Name GreenPalm Trading No (MT) Sold Certified PK (MT) Sold 1 N/A N/A N/A N/A 5.6 Records of Certified CPO & PK Sold under UTZ e-trace to Buyers since the Last Audit, if Any If this is the 1 st 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. The transactions were sighted from the clients registered UTZ e-trace Account. No. Buyers Name UTZ e-trace Trading No Certified CPO (MT) Sold 1 PT. Musim Mas Batam TR-75084c40-3b20 2, PT. Musim Mas Batam TR f PT. Musim Mas Batam TR-8ec6574c-e450 2, PT. Musim Mas Batam TR-770eddf0-eda0 1, PT. Musim Mas Batam TR-3728c01e-2c8d 1, 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. None 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. PT Maju Aneka Sawit has a palm oil mill and its supply base - Estate Tanah Mas, Kas Desa Tanah Putih, Kas Desa Penyang and supply base from PT Globalindo Alam Perkasa Estate Alam Sahara and PT. Multipersada Gatramegah - Estate I. The mill and the supply bases are governed under one common management system, developed by Musim Mas Group and implemented in all their operations. RSPOPC-SUM-REPORT.F01 MAY 2014 Page 33 of 39

34 5.9 Final Certification decision by Control Union for the RSPO SCCS Audit of the POM Recommendations made: Yes Summary of noncompliances: None Found 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: April Date for Closure of Non-Conformities See sections above for details of NC s, if any All major NCs to be closed by: All minor NCs to be closed by: None Before next surveillance audit RSPOPC-SUM-REPORT.F01 MAY 2014 Page 34 of 39

35 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: 24/05/2014 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: Mahas Position: Lead Auditor Date: 24/05/2014 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: Nurhadi Position: Certifier Date: Acknowledged by (revised version): Name: Gerben Stegeman Signature RSPOPC-SUM-REPORT.F01 MAY 2014 Page 35 of 39

36 Position: Certifier Date: 11/09/2014 Signature PART 7: APPENDICIES Appendix 1: Location Map for this Certification Unit Map 1: Map showing the location of estates (PT. MAS, PT GAP & PT MPG) in Indonesia. Map 2 : Map showing the location of PT MAS, PT GAP& PT MPG in Central Kalimantan. RSPOPC-SUM-REPORT.F01 MAY 2014 Page 36 of 39

37 Map 3: Map showing the location of the estate, POM and neighbouring entities. RSPOPC-SUM-REPORT.F01 MAY 2014 Page 37 of 39