Roundtable on Sustainable Palm Oil Supply Chain Certification Report

Transcription

1 Roundtable on Sustainable Palm Oil Supply Chain Certification Report Report no.: SCCS-ASA Assessment against RSPO Supply Chain Certification Systems, November 2011 Wilmar International Indonesia PT Wilmar Nabati Indonesia Gresik- East Java Date of assessment : January, Report prepared by : Hendra Fachrurozy (RSPO Lead Auditor) Certification decision by: Muhammad B. Asana (Head of Certification Body PT TUV Rheinland Indonesia) Certification Body : PT TUV Rheinland Indonesia Menara Karya 10 th Floor, Jl. H.R Rasuna Said Block X-5 Kav.1-2, Jakarta Indonesia, Tel: Fax:

2 TABLE OF CONTENTS 1.0 SCOPE OF SUPPLY CHAIN CERTIFICATION ASSESSMENT Executive Summary and Scope of Audit Certification Details Organisational Information / Contact Person Actual received and sold volumes Summary of Previous Assessment ASSESSMENT PROCESS Certification Body Qualifications of Lead Assessor and Assessment Team Assessment Methodology & Agenda ASSESSMENT FINDINGS Description of Supply Chain Management System Status of Previously Identified Non-conformities Identified Non-conformances against RSPO SCCS Requirements, Corrective Actions Taken and Auditors Conclusions Conclusion and Approval for RSPO Supply Chain Certification CERTIFIED ORGANISATION S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY Date of Next Surveillance Visit Acknowledgements of Internal Responsibility and Formal Sign-Off by Client APPENDICES Appendix 1: Details of Supply Chain Certification Certificate Appendix 2: List of Abbreviations Appendix 3 : Observations and Opportunities for Improvement Appendix 4 : List of supplier and buyer Appendix 5 : List of Certified Customer... 24

3 Page 3 of SCOPE OF SUPPLY CHAIN CERTIFICATION ASSESSMENT 1.1 Executive Summary and Scope of Audit PT Wilmar Nabati Indonesia is foreign investment company under Wilmar International group, which is engaged in the processing of palm oil and its derivatives in the form of edible oil and non edible oil (Oleochemical) products. As refinery and fractionation mill PT Wilmar Nabati Indonesia produces i.e.: Edible oil products such as Crude Palm Kernel Oil, Refined Palm Oil, Fatty Acid Distillate, Refined Palm Olein, Refined Palm Stearine, Crude Kernel Olein and Crude Kernel Stearin most used for the food industry. The company produced cooking oil under the brand name Sania and Fortune. Non Edible Oil product (Oleochemicals) Fatty products such as acid, glycerine, soap methyl ester and Noodles are used in various industries and biodiesel is used as fuel. The operations of PT Wimar Nabati Indonesia were assessed against the RSPO Supply Chain Certification Systems (SCCS) document (November 2011). The scope of the Supply Chain Certification System assessment covers the implementation of the Mass Balance supply chain model for all edible oils and non-edible oils produced by PT Wilmar Nabati Indonesia. This is not a multi-site certification. The volume of palm oil product was producted by PT Wilmar Nabati Indonesia Gresik in year 2014 and projection of product sold for year Product Type Production for year 2014 Projection of product sold for year 2015 PK Crushing 329, ,000 Refinery & Fractionation 1,768, ,800,000 Refinery & Specially fat 115, ,000 CPKO Fractionation 101, ,000 Fatty Acids 817, ,000 Glycerine 55, ,000 Soap Noodle 97, ,000 Bio Diesel 789, ,000 ME Fractionation 222, ,000 Fatty Alcohol 100, ,000 MES 14, ,000 The annual surveillance audit was carried out on January 12, 2015 and a total of 4 (four) non-conformities were found during assessment. 1.2 Certification Details The details of RSPO Supply Chain certification of PT Wilmar Nabati Indonesia are as per the table below Table 1: RSPO Supply Chain Certification details of PT Wilmar Nabati Indonesia RSPO Membership no.: on behalf Wilmar International Limited RSPO Supply Chain Certificate no.: Date of RSPO Supply Chain certificate & validity: to Refer to Appendix 1 for further details of the RSPO Supply Chain certificate.

4 Page 4 of Organisational Information / Contact Person Contacts details of the company are as follows : Company Name: Address: PT Wilmar Nabati Indonesia Head Office : Multivision Tower 15 rd floor, Jl. Kuningan Mulia Kav. 9B Jakarta Selatan, Indonesia Plant : Jl. Kapten Darmo Sugondo No. 56, Indro Village, Kebomas Subdistrict, Gresik District, East Java Contact Person: Purnomo Adi N Telephone / Fax: / purnomo.adi@wilmar.co.id 1.4 Actual received and sold volumes. Table 2 : Records of Material Received/ Purchased year 2014 Supplier RSPO Certificate Number Product UTZ Number Volume (MT) Status / Model SC PT Wilmar Nabati Indonesia *) PK PO , MB (Bagendang) Total 30, Note : *). Transaction product not sales but transfer Table 3 : Records of Palm Oil Product Sold year 2014 Buyer PT Kievit Indonesia Wilmar Gavilon - Natural Oleochemicals Sdn Bhd Wilmar Europe Holdings BV Note : - RSPO Certificate Number C829955CU-RSPO SCCS RSPO SC 0043 C813306CU-RSPO SCCS Product UTZ Number Volume (MT) Status / Model SC RHPKOL - 3, MB TRHPKS Sania Ultrachoco DK , FAL FAL CPKO DC DK MB Total 7, MB 1.5 Summary of Previous Assessment On the last year audit certification of PT Wilmar Nabati Indonesian there are 4 (four) findings related to the fulfillment of the RSPO SCCS requirement November Existing condition still 11 types of products within the scope of certification as specified in annex supply chain certificate issued on 9 April 2013.

5 Page 5 of ASSESSMENT PROCESS 2.1 Certification Body PT TUV Rheinland Indonesia is member of Group TÜV Rheinland Group, a global leader in independent testing and assessment services. The TÜV Rheinland Group was established in 1872 with offices located in over 490 locations in 62 countries on all five continents. PT TUV Rheinland Indonesia offers certification for a wide range of management systems according to established international standards including ISO 9001, ISO 14001, OHSAS 18001, SA 8000, RSPO (RSPO-ACC-013 dated on June 06, 2014), ISPO (LS-P&K-005-ISPO dated on May 10, 2012), SFM (mandatory and voluntory), as well as CDM Validations and Verifications. PT TUV Rheinland Indonesia s office is located in Jakarta, Indonesia. 2.2 Qualifications of Lead Assessor and Assessment Team Name Position Qualifications / Experience Hendra Fachrurozy Riki Harpan Lead Auditor Auditor (Trainee) Education: Bachelors Degree in Forestry - Bogor Agriculture Institute. Indonesia, (1995 to 2000). Trainings attended: ISO 9001:2008 lead auditor course - Neville Clark (2011); ISO 14001:2004 lead auditor course TUV Rheinland Indonesia (2011); SMK3 auditor course Department of Manpower and Transmigration of The Republic of Indonesia (2009); Sustainable Forest Management (SFM) - Forest Stewardship Council (FSC) system training; Chain of Custody training for FSC System; Sustainable Forest Management (SFM) Forestry Education and Training Centre (2010); Timber Legality of Verification Forestry Education and Training Cetre (2010); RSPO Lead Auditor Course Pro Forest & Wild Asia (2011); SCCS RSPO by David Ogg Consulting (September 2012). Working experience: Experienced as Junior Consultant at PT Surveyor Indonesia (2002 s/d 2010), assesor for SFM mandatory (PHPL & PHTL), assessor for industry performance assessment (IPHHK)-mandatory, auditor for Timber Legality of Verfication and CoC, auditor for SMK3, auditor for QMS and EMS and auditor for ISPO, RSPO & SCCS at TUV Rheinland Indonesia. Education: Bachelors Degree in Germany language education Jakarta State University. Indonesia, (2001 to 2008). And Magister Management Budi Luhur University, Indonesia (2010 not passed) Trainings attended: Training for Auditor CoC PEFC-IFCC from Indonesian Forestry Certification Cooperation (IFCC), Training for Timber Legality Verification (VLK) Auditor Mandatory from Ministry of Forestry, The Introduction of ISO 9001:2008 Workshop with AJA Academy, FSC/PEFC-Chain of Custody Standard with Jobst Dustersiek (Lead Auditor QM/FSC/PEFC System LGA InterCert GmbH, International Sustainability & Carbon Certification (ISCC) Sales Training with Dr. Rüdiger

6 Page 6 of 24 Name Position Qualifications / Experience Meier Product responsible for sustainable Biomass and FSC TÜV Rheinland Cert GmbH, The Awareness Training for Health, Safety and Environmental Management Systems, Awareness Training Roundtable on Sustainable Palm Oil (RSPO) with Mrs. Dian S. Soeminta (Lead Auditor RSPO of TÜV Rheinland Indonesia), Pelatihan Pengenalan SNI ISO/IEC 17021:2008 from National Standardization Agency of Indonesia (BSNI), Training for Quality Management Systems (QMS) Auditor/Lead Auditor, RSPO SCCS Trainee. Working experience: Technical Support Assistance acting as Document controller for Quality Management System (QMS), Forestry Certification and Agriculture Certification Department ( ). VLO Auditor, VLK Trainee Auditor, CoC FSC Auditor, CoC PEFC-IFCC Auditor, V-Legal Inspector and Facilitator Expert Panel I (preassessment) for Sustainable Forest Management (PHTL) & Chain of Custody (CoC) LEI certification, RSPO SCCS Trainee auditor (2012-now). 2.3 Assessment Methodology & Agenda The supply chain certification 2 nd surveillance audit was conducted on January 12, 2015 as per audit plan below. The assessment was carried out in accordance with TUV Rheinland Indonesia s RSPO audit procedure as well as the RSPO Supply Chain Certification Systems document. An on-site assessment was conducted and the assessment team carried out field and document assessments of compliance to RSPO Supply Chain Certification System requirements. The company proposed the correction and corrective action for all identified non conformities raised to the certification body 15 days after the closing meeting. Verification of closure of non-conformances was conducted through document checked 4 weeks after the closing meeting of the 2 nd surveillance audit. The 2 nd surveillance audit agenda is as explained below : Date Location/ Main sites Main activities January 12, 2015 Gresik plant Opening Meeting Company Profile and previous audit findings presentation; Verification for prveious audit finding Clarification for system changes. Document verification such as mass balance records, receipt material records, dispatch product records, training records, etc Refinery tour : - Dispatch product - Product processing - Procurement - Outsourching control Lunch and break - PPIC office - Sales document - Weighbridge - Receipt material

7 Page 7 of ASSESSMENT FINDINGS 3.1 Description of Supply Chain Management System PT Wilmar Nabati Indonesia (WINA) is a company under Wilmar International Group, located in Gresik wich has two main activities i.e, refinery and fractionation palm oil and palm kernel. The mill was commissioned in August 8, 2008 with a production capacity of 600 tonnes/day. In December 2009, the company increased their capacity to 2500 tonnes per day and developed a new Oleo Plant with production capacity 400 ton per day which produces Fatty Acid and Glycerine. In January 2010, the company established new finishing plant for Soap Noodle product with production capacity of 100 ton per day of beading products, 50 tonnes per day of fatty acids and 64 tonnes per day of glycerine. In year 2010 Palm Kernel Crushing Plant was commissioned with total capacity 500 tons per day and biodiesel plant with production capacity 2,000 tons per day. PT WINA Gresik material uses CPO and palm kernel which are supplied by palm oil mills under Wilmar Group and purchases from other suppliers from non Wilmar Palm Oil Mills. During 2 nd surveillance audit it was verified that the mill has been produced edible and non-edible oils as explained in section 1.1 above to supply for several buyers such as Natural Oleochemicals Sdn. Bhd, PT Kieivit Indonesia, Wilmar Gavilon and Wilmar Europe Holding BV and has been purchased/transfer certified material (Palm Kernel (PK)) from certified supplier i.e. PT Wilmar Nabati Indonesia (Begendang). All production process was conducted internally; company has outsourcing process for material transportation and final product transport. The company has been implementing quality management system ISO 9001:2008 and has been providing complete standard operation manual and standard operation procedure for all strategic operation units for daily operation activities as seen on document M-WINA/QMS/001and other standard operation procedure documents. There are found some non conformtities regarding company s implementation SCC system according RSPO SCC standard November 2011 Module C (Mass Balance). The following is a description of the company s supply chain management system according to the RSPO SCCS requirements, including status of compliance of the company and their outsourced third parties to RSPO SCCS requirements: Section 1: 5. General Chain of Custody System Requirements for the Supply Chain 5.1 Applicability of the General Chain of Custody System Requirements for the supply chain Findings: Management PT Wilmar Nabati Indonesia still has commitment to implement RSPO SCCS. The company s supply chain management system still integrated with the implementation of quality management systems at ISO 9001:2008. No changes on company s supply chain model since last year audit i.e. Mass Balance system ( Module C) due to the nature of incoming material from company s supplier are Mass Balance and company s production facilities are not sufficient enough to implement others supply chain model. Beside revised their quality manual to include all RSPO SCCS requirements, some standard operation procedure have been revised to fullfil RSPO SCCS requirement and as part of company s improvement from previous audit findings and 2 nd surveillance audit findings. During 2 nd surveillance audit it was indicated company was not fully sufficient to demonstate their implementation to SCCS system and relevant requirement. Several non conformites were raised through NCRs stated on section 5.2 and 5.4 below. PT Wilmar Nabati Indonesia (Gresik) is RSPO member under Wimar International Ltd with membership number Compliance status : Non Compliance (see NCR stated below in section 5.2 and 5.6) 5.2 Documented procedures

8 Page 8 of 24 Findings: The company has created the documented procedure such as flow process, standard operational procedure and also work instruction to fulfil the requirements of RSPO SCCS systems, some of the documentation are 1. Incoming raw material process In the process of incoming raw material the company has established the flow process incoming raw material (FP/WINA-SHP ) that described the process from receiving of the certified raw material to the storage tank. For more detail process the company has created the procedure a. Palm Kernel Discharging From Ship (SOP/WINA-SHP ) b. Oil Discharging From Ship (SOP/WINA-SHP ) 2. Production process In the production process the company has created the documentation for each scope of RSPO SCCS, for example: a. Edible products - Flow process PK Crushing Plant 1 (FP/WINA-PROD ) - Start UP Plant (SOP/WINA-PROD ) - Oil Filtering (SOP/WINA-PROD ) - PKM Storage (SOP/WINA-PROD ) - Flow process for Refinery 1 (FP/WINA-PROD ) - Flow process for Fractionation 4 (FP/WINA-PROD ) - Crystallization process phase for Refinery and Fractionation (SOP/WINA-PROD ) b. Oleo products - Flow Process Biodiesel (FP/WINA-PROD ) - Transesterification, Washing and Drying for Biodiesel (SOP/WINA-PROD ) - Flow Process Glycerine Water Treat (FP/WINA-PROD ) - Flow Process Glycerine Water Evap (FP/WINA-PROD ) - Flow Process Glycerine Bleaching (FP/WINA-PROD ) - Glycerine Distilllation (SOP/WINA-PROD ) 3. Finished products outgoing process In the outgoing process the company created the flow process outgoing cargo (FP/WINA-SHP ) that described the outgoing products process using vehicle or ship, the example procedures are: a. Local Loading Document Arrangement By Truck or Isotank (SOP/WINA-LOG ) b. Weighing Local Products Procedure (SOP/WINA-WBG ) c. Delivery Material By Trucking (SOP/WINA-TKF ) d. Palm Kernel Expeller Loading To Ship Procedure (SOP/WINA-SHP ) 4. E-trace registration The procedure of registration to RSPO IT System (e-trace) (SOP/WINA-PPC ) that described the transaction of selling RSPO SCCS products in e-trace. 5. Mass balance and treaceability The procedure of Mass Balance and Treaceability for RSPO SCCS (SOP/WINA-PPC ) that described the treaceability and mass balance counting for certified products. 6. Training Training procedure (SOP/WINA-PGA ) In the incoming raw material process, the company use outsourcing for the carriage of Palm Kernel with using truck from vissel to weighing until the PK storage location and in the finished goods the company also using outsourcing for handling the shipment of certified material to another country, however the company has no procedure for outsourcing process to ensure that the process is already fulfil with RSPO SCCS requirements. It was raised as non-conformity (NCR No of 04). The name of the person having overall responsibility for and authority over the implementation of these requirements and compliance with all applicable requirements was change from Mr. Zaki to Mr. Purnomo Adi Nugrohoh. Top management assigned Mr. Purnomo as RSPO SCCS management representative through decree letter no. 002/PGA-WINA/SK/IX/2014 dated September 1, 2014 signed by Executive Director Mr. Taufik Tamin, similar jobdescription explain on the letter for SCC implementation. During the audit time, Mr. Purnomo has good knowledge and able to demonstrate awareness of the facility s procedures.

9 Page 9 of 24 Compliance status: Non Compliance NCR No of 04 The company has not procedure for outsourcing process to ensure that the process is already fullfill with RSPO SCCS requirements a 5.3. Purchasing and goods in Findings: PT WINA Gresik has a mechanism to receiving material. Logistic section received incoming material schedule from marketing as a basis to make local shipping schedule, information about local shipping schedule will be distributed to Quality Assurance, Weigh Bridge, PPIC and other relevant section Operation jetty receive information incoming vessel from trading and logistic including RSPO certified product or non-certified product. After the ship berthing well at jetty. Loading master and surveyor checks the load port seal, Loading master will fulfill the checklist for discharging material (both palm kernel and CPO) using form F-WINA/SHP/031 where ensure too that RSPO certified product has available MB code/mark on bill of landing, packing list, etc and jetty operator will make seal & material opening report (F- WINA/SHP/032) for certified product the document has availabled MB code/mark (wet stamp). Jetty personnel will check the completeness of all documents and all documents will be transfer to QA section (for product checking) and PPIC (for the next process). Loading master instruct QA to take sample from each ship hatch/barge after ship crew already open it for quality checking. Discharging can be done after getting aproval from QA or Management. During discharing loading master make sure that there is no much material of bag fall to the sea. Crup palm oil will be discharging and transfer to storage tank though piping while for palm kernel there are 2 (two) discharging methods (SOP/WINA-SHP Rev.04 about Palm Kernel Discharging from Ship where as guidance for ascertaining that unloading cargo from ship or barge will not contaminate and spilt out) i.e.: 1. By truck, PK will be loaded to truck, perfoming weighing and send to Silo. Weighbridge will make WB ticket with stamp RSPO-MB for certified material and send to Logistic including Jetty section. Then logistic section will make Shipment Dischage Detail which has stamped RSPO-MB (for certified material) to be sent to all relevant departement. 2. By Coveyor, PK from vessel discharge to Hopper conveyor and sending to SILO, after finish, Jetty opeartor will be inform to Weigh bridge for weighing and the result will be reported to Logistic including jetty. Then logistic section will make Shipment Dischage Detail which has stamped RSPO-MB (for certified material) to be sent to all relevant departement. Weighing process for CPO product will be monitored by flow meter and WB section will make report to be sent to Logistic and Jetty section. PPIC section has recorded all incoming material data both certified and non-certified and make the material balance records. Period of January to December 2014 that all receipt certified material from PT Wilmar Nabati Indonesia (Bagendang) only i.e Palm Kernel (PK). PT Wilmar Nabati Indonesia (Gresik) same as PT Wilmar Nabati Indonesia (Bagendang) but different location only so that the status of transaction no sales however transfer. All transactions are transfer status so that purchase document or purchase agreement and announce and confirm trade in RSPO IT (etrace) not available. Based on table 2, volume of receipt certified material are 30, MT for Palm Kernel (PK) and the results of verification that there are information of certified status and supply chain model ( MB ) on the bill of lading (B/L) and manifest and quantity of receipt material has appropriated between statement letter of the unloading of palm kernel with shipment discharging detail. The company has mechanism to ensure validity of the Supply Chain Certification of suppliers through six monthly supplier evaluation and will be checked via the list of RSPO Supply Chain Certified facilities on the RSPO website has procedure for handling non-conformance product integrated with their quality management system ISO 9001, has been established mechanism to inform CB immediately if there is a projected overproduction and has assigned a person to be responsible to check and ensure both qualty and quantity of the certified material is as per purchase documents.

10 Page 10 of 24 List of supplier per December 31, 2014 are PT Sinar Alam Permai (Kumai), PT Wilmar Nabati Indonesia (Bagendang), PT Mustika Sembuluh (POM 1), PT Kerry Sawit Indonesia (POM 1), PT Sarana Titian Permata and PT Bumi Sawit Kencana. Period of January to December 2014, there is not handling non-conforming material/product/document in receipt material or dispatch product process. Compliance status : Full Compliance 5.4 Outsourcing Activities Findings: PT WINA Gresik is producing Edible and Non Edible Oil from supplied CPO and PK, all production process are available on company s facility. Company using outsourcing proces for material and finished good transportation. Such as road tanker for palm kernel from Jetty to Silo and for finsihed good product delivery to local customer or for export. However the company has no documented control system with explicit procedures for the outsourced process which are shared with the relevant contractor. In the list of Transporter for outsourcing process dated February 5, 2014, there are 8 identified road tanker companys as company s subcontractors. And during the 2 nd surveillance audit the company has only 4 companies listed in the list of Transforter dated January 9, The companies are : No Transporter Name MKL (export shipment) 1 PT Antar Benua Cahaya 2 PT Cipta Prima Mandiri Address Jl. Kalianget No. 118, tanjung perak surabaya Jl. Rajawali No 64B Surabaya Trucking (delivery raw material to storage) 3 PT Muara Lintas 4 PT Hacaca Setia Abadi Jl. KH Kholil No. 18 Gresik Jl. Raya Tambak Langon 25 Surabaya No. Telp / Contact Person Niken abcsub@indosat.net.id/ csadm.abc@gmail.com/ abcsby@gmail.com Tyas Wara tyas@ciptaprima.com/ mkt-sub@ciptaprima.com Rikhe Suryabuanalintas@yahoo.co.id Adhi Budi_lukito@hacaca.com/ adhi.hsacargo@gmail.com During the changes of the outsourcing companies, the company has not informed to certification body about the names and contact details of any new or changes of the contractor used for the processing or production of RSPO certified materials. It was raised as Non-Conformity (NCR No of 04). From 4 outsourcing companies, only 2 companies who have formal contract that signed by both parties,, there are a. Contract No. 004/LOG-WINA-GSK/I/2014 between PT Antar Benua Cahaya and PT WILMAR GROUP dated January 20, 2014 valid until 12 months. b. Contract No. 005/SPKJPB/WINA-HAS/VI/2014 between PT Hacaca Setia Abadi and PT Wilmar Nabati Indonesia dated January 12, 2015 valid until one year. The other two companies has no formal contract that signed by both parties rather than Letter of commitment dated January 8, 2014 signed by PT Muara Lintas Surya and January 12, 2015 signed by PT Cipta Prima Mandiri. It is raised as Non-Conformity (NCR No of 04). Compliance status: Non Compliance

11 NCR No of 04 Page 11 of 24 The company did not informed the certification body about the names and contact details of any new or changes of the contractor used for the processing or production. NCR No of 04 The company has no formal contract which is signed by both parties for PT Muara Lintas Surya and PT Cipta Prima Mandiri. 5.5 Sales and goods out Findings : The sales and goods out mechanism of the company are described in their procedure of sales of palm oil. Logistic section received product delivery schedule and copy of sales order from marketing as basic information to make Shipping Instruction. For Shipping agent as shipping transporter. For local destination, logistoc section making local shipping schedule to be informed to QA, WB, PPIC and other relevant section. Afer product loading finished, there will be weighing product at Weigh bridge section, while for export though vessel weighing using flow meter. After finish weighing, road tanker will bring WB ticket and the copy of WB ticket will be sent to logistic section. Logistic make Post Good Issue base on quantity received by customer. Several records issued for outgoing product depend on the transfer method used such as : - Vessel : Shipping Instruction (SI); Bill of lading (B/L); Certificate of Analysis (F-WINA/QA/011); Shipment Loading Detail (SLD). - Truck : Sales Order (SO); Delivery Order (DO), Certificate of Analisys (F-WINA/QA/011), Weight Bridge Ticket, delivery Note (F-WINA/WH/204) and F-WINA/TXT/ Container or ISO Tank : Packing list, Bill of Lading (B/L), Certificate of Analysis (F-WINA/QA/011); Weighbridge Ticket. For the recording data of the outgoing products, the company use Bill of Lading for Export and Delivery Notes for local. Below is a summary of the sales and goods out No Buyer Seller 1 Wilmar Gavilon PTY LTD (New Zealand Branch 393 Ellerslie Panmure Highway MT Wellington, Auckland NZ) 2 Wilmar Gavilon PTY LTD (New Zealand Branch 393 Ellerslie Panmure Highway MT Wellington, Auckland NZ) 3 Wilmar Gavilon PTY LTD (New Zealand Branch 393 Ellerslie Panmure Highway MT Wellington, Auckland NZ) 4 Wilmar Gavilon PTY LTD (New Zealand Branch 393 Ellerslie Panmure Highway MT Wellington, Auckland NZ) 5 Wilmar Gavilon PTY LTD (New Zealand PT. Wilmar Nabati Indonesia (Gresik) Jl. Kapten Darmo Sugondo No. 56 Gresik PT. Wilmar Nabati Indonesia (Gresik) Jl. Kapten Darmo Sugondo No. 56 Gresik PT. Wilmar Nabati Indonesia (Gresik) Jl. Kapten Darmo Sugondo No. 56 Gresik PT. Wilmar Nabati Indonesia (Gresik) Jl. Kapten Darmo Sugondo No. 56 Gresik PT. Wilmar Nabati Indonesia (Gresik) Jl. Delivery Date Document Date Product Description Sania Ultra Choco (Texturized Refined Hydrognated Palm Kernel Stearin) Sania Ultra Choco (Texturized Refined Hydrognated Palm Kernel Stearin) Sania Ultra Choco (Texturized Refined Hydrognated Palm Kernel Stearin) Sania Ultra Choco (Texturized Refined Hydrognated Palm Kernel Stearin) Sania Ultra Choco (Textur- Supply chain model Quantity Trans. Doc Cert. number RSPO-MB Kg B/L Not infomed RSPO-MB Kg B/L Not infomed RSPO-MB Kg B/L Not infomed RSPO-MB Kg B/L Not infomed RSPO-MB Kg B/L Not infomed

12 Page 12 of 24 Branch 393 Ellerslie Panmure Highway MT Wellington, Auckland NZ) 6 Wilmar Gavilon PTY LTD (New Zealand Branch 393 Ellerslie Panmure Highway MT Wellington, Auckland NZ) 7 Wilmar Edible Oils (Vondelingenweg 540 (harbor no. 3269) 3196 KK Vondelingenplaat- Rotterdam The Netherlands 8 PT Kievit Indonesia Jl. Merpati 1, Mangunsari Sidomukti Salatiga 9 MT GoldenGate Park V10/14 10 Natural Oleochemicals SDn BHd (PLO 428, Jalan Besi Satu, Pasir Gudang, Johor, Malaysia) 11 Natural Oleochemicals SDn BHd (PLO 428, Jalan Besi Satu, Pasir Gudang, Johor, Malaysia) Kapten Darmo Sugondo No. 56 Gresik PT. Wilmar Nabati Indonesia (Gresik) Jl. Kapten Darmo Sugondo No. 56 Gresik PT. Wilmar Nabati Indonesia (Gresik) Jl. Kapten Darmo Sugondo No. 56 Gresik PT. Wilmar Nabati Indonesia (Gresik) Jl. Kapten Darmo Sugondo No. 56 Gresik PT. Wilmar Nabati Indonesia (Gresik) Jl. Kapten Darmo Sugondo No. 56 Gresik PT. Wilmar Nabati Indonesia (Gresik) Jl. Kapten Darmo Sugondo No. 56 Gresik PT. Wilmar Nabati Indonesia (Gresik) Jl. Kapten Darmo Sugondo No. 56 Gresik ized Refined Hydrognated Palm Kernel Stearin) Sania Ultra Choco (Texturized Refined Hydrognated Palm Kernel Stearin) & Lauryl Myristyl Alcohol (WFR FAL 1214) Refined Hydro Palm Kernel Olein IV Palm Kernel Fatty Acid (Wilfarin DK & & Palm Kernel Fatty Acid (Wilfarin DK-1218) & Caprylic Capric Acid Blend (Wilfarin CC-0810) RSPO-MB Kg B/L Not infomed RSPO-MB 1.000MT B/L RSPO-MB Kg DN RSPO-MB 600MT B/L RSPO-MB 1.500MT & 1.000MT B/L RSPO-MB 200Kg B/L Not infomed From the sales and goods out data, it was observed no selection supply chain certification model refered to sales document such as B/L or Delivery Notes for products Distilled Caprylic capric Acid (DC-0810) and Sania Ultra Choco (Texturized Refined Hy-drognated Palm Kernel Stearin). It was raised as Non- Conformity (NCR No of 04) Compliance status: Not Compliance NCR No of 04 The company not informed the supply chain certification reference number in the B/L or Delivery Notes for products Distilled Caprylic capric Acid (DC-0810) and Sania Ultra Choco (Texturized Refined Hydrognated Palm Kernel Stearin) 5.6 Registration Findings: PT WINA Gresik is producing Edible and Non Edible Oil from supplied CPO and PK, during 2 nd surveillance audit company has established SOP for registration every transaction to RSPO IT System as required by RSPO-SCC standard and the control of IT system is trading section in Singapore. Company has online system for daily product reporting.

13 Page 13 of 24 Auditee has registered in etrace with ID number : PO but all transaction buy material and sell product year 2014 with certified status not available in etrace because software is not compatible or under construction to the PK product so next audit will verificated for compliance it. Compliance status: Compliance with observation. 5.7 Training Findings: PT WINA Gresik has training procedure (SOP/WINA-PGA ) and Matrix Training in 2014, which the training for RSPO SCCS has been conducted internally on February 3, 2014 trained by internal training Mr. Purnomo that also acting as MR for RSPO SCCS systems. The training records such as training form (F- WINA/PGA/014); training attendance list form (F-WINA/PGA/015), training material and also traning evaluation records. Training plan year 2015 has available where one of training is updating/refreshing of RSPO SCCS and it will carry out in June Compliance status: Full Compliance 5.8 Claims Findings: The company has an SOP for making claims certified product according RSPO communication and claims. However company not claim the product diretly, only require in relevant certified product, due company only produce intermediate product not finsihed good consumer product. Compliance status: Full Compliance Section 3: Modular Requirements: Module C Mass Balance C.1. Processing Findings: There are no changes on company s production process system since company decided to implement mass balance for their certified edible and non edible oil. There is no specific requirement to separate production process for certified and non certified product. The mill control they production process though daily production report. PPIC department has responsibility to control the process. During surveillance audit selected sample for certified product i.e. DO no can be proved that the certified product can be traced back to only certified material. The company has mechanism for all product defined as certified as seen on the Table 2 include on the ceritification scope. This is company s improvement compare with last year audit. From verified record during 2 nd surveillance audit that year 2014, the company only product certified RHPKOL product sold to PT Kievit Indonesia. The material used to produce RHPKOL is Palm Kernel. The process palm kernel become RHPKOL are palm kernel will be converted into Palm Kernel Oil (PKO) in Palm Kernel Mill with conversion factor 0.45, the waste of PKO mill is PKE (Palm Kernel Expeler) this product always used as material for animal feeding. From PKO will be converted become RHPKOL/CPKOL (Certified Palm Kernel Olein) through fractination process with conversion factor 0.65 by product from fractionation process is CPKS (Certified Palm Kernel Sterin).

14 Page 14 of 24 The organization has established a mechanism for control and maintenance of the data and document used in production process following WINA Gresik Quality Manual M-WINA/QMS/001 and Standard Operation Manual, in which the retention time for all records and reports already defined for at least for five (5) years. The storage and maintainance of documents is the responsibility of the respective departments. The refinery has record and balance all receipts of RSPO certified material and non certified material and deliveries of RSPO certified product on daily basis; All volumes of product that are delivered are deducted from the material accounting system according to actual daily conversion ratios. Compliance status: Full Compliance C.2. Record keeping Findings: The company has established a mechanism for control and maintenance of the data and document used in production process as stated on the WINA Quality Manual and records control procedure, the retention time for all records and reports for certified material and product has been defined for at least for five (5) years. The storage and maintainance of documents is the responsibility of the respective departments. According to quality manual company will clearly indicate the supply chain model used with trade names in relevant documents, e.g. purchase and sales contracts with *product name*/mb or Mass Balance. During 2 nd surveillance audit it was found inconsistent implementation of document and has been raised as non conformities and explained on section 5.2 and 5.4 above. Compliance status: Full Compliance C.3. Mass Balance Findings: PT WINA Gresik has establish a mechanism to ensure that the quantity of physical CSPO and CSPK RSPO mass balance material inputs and outputs (volume or weight) at the physical site are monitored on a realtime basis. All volumes of palm oil that are delivered are deducted from the material accounting system according to actual daily conversion ratios. Officer from PPIC section has been assign to monitor daily report regarding Internal material accounting system will be complies with the RSPO requirement such as can only deliver Mass Balance sales from a positive stock. The company will inform CB if facing condition to make sell short. The implementation of certified product accounting system has been implemented by PT WINA Gresik where input, process and output has true and connecting. According to company s mass balance records, for year 2014 company only produced certified CPKO Fractionated product ie. CPKOL/RPKOL/HPKOL/RHKOL and CPKS/RPKS/HPKS/RHPKS. Incoming certified PK come from certified suppliers (PT Wilmar Nabati Indonesia (Bagendang) are 30, ton. All material used to produced CPKOL/RPKOL/HPKOL and CPKS/RPKS/HPKS. Conversion factor from PK to PKO is 0,45; from PKO to CPKOL is 0.65 and from PKO to CPKOS is Total CPKOL/RPKOL/HPKOL and CPKS/RPKS/HPKS product in year 2014 is 3,000 ton such as 1,950 ton and 1,050 ton and the certified product was sold amount of 3, ton (CPKOL/RPKOL/HPKOL/RHPKOL) and ton (CPKS/RPKS/HPKS/RHPKS). It was proved that company s material balance can show delivered product sales from a positive stock for year Compliance status: Full Compliance 3.2 Status of Previously Identified Non-conformities

15 Page 15 of 24 During the previous audit, a total of 6 (six) major non-conformities against the RSPO SCCS year 2011 were identified. The company is given a timeframe to close all major non-conformities within 30 days and at time of first submission of this report to the certification body. NCR No of 06 : Company has no clear mechanism for several activities related certified material and certified product such as : - Recieving incoming certified material from vessel into company s material storage through conveyor/road tanker to ensure that the products are verified as being RSPO certified - Outgoing certified product through road tanker Verification results : It was sight during surveillance audit that procedure for incoming certified material from vessel into company s material storage through conveyor/road tanker (SOP-WINA/LOG/001) jo procedure for local discharging document arrangement (SOP/WINA-SHP Rev.02), procedur for palm kernel discharging from ship (SOP/WINA-SHP Rev.04) and procedure for local loading document arrangement by truck or isotank (SOP/WINA-LOG Rev.01) as guidance to implement handling or verification receipt certified material (from vessel into company s material storage through conveyor/truck) and dispatch certified product (through road tanker/truck). Auditor Conclusions : Closed NCR No of 06 : There is no clear statement about material category on company s purchasing document agreed with their supplier whether it is IP/SG/MB. Verification results : The company has provided the plan of receipt material and dispatch product during one month include status of material (RSPO-MB). On the purchasing document (sales order) has cleared statement about material category or supply chain model which has agreed with their buyer. Auditor Conclusions : Closed. NCR No of 06 : The company has outsourced activites such as transportation for certified material and certified product however company has no formal contract as required by RSPO SCCS Verification results : The company has provided contract document with transporter companies. There is sample of contract provided between WINA Gresik and PT Sarana Berkat Agus Transport where it has been signed by both PT WINA Gresik and transporter company. Auditor Conclusions : Closed. NCR No of 06 : Company has no record the names and contact details of all contractors used for transportation of RSPO certified product, e.g. PT Sarana Berkat Anugrah; PT Antar Cahaya Benua.

16 Page 16 of 24 Verification results : The company has provided list of outsourcing companies for transporter where it has included information about outsourcing name, address, telephone number, Person in Charge and address. The information of outsourcing name and contact details on behalf PT Sarana Berkat Anugrah and PT Antar Cahaya has involved. Auditor Conclusions : Closed. NCR No of 06 : The company s relevant sales documents issued for RSPO certified oil palm products delivered, e.g. delivery notes, certificate of analisys, sales order documents is not include information about applicable supply chain Mass Balance Weightbridge ticket for outgoing product did not consistently inform about buyer s address such as document no. NI , NI etc Verification results : The company has provided sales document (delivery notes, certificate of analysis and sales order document) for RSPO certified product including sypply chain model (RSPO MB) and weighbridge ticket no. NI and NI have added information i.e buyer s address. Auditor Conclusions : Closed. NCR No of 06 : The company has not been conducted training to implement the requirement of the SCCS to relevant worker dealing with certified material and certified product Verification results : The company has carried out training on February 3, 2014 and provide training evindence i.e. list of attendance. According to the training evidence, there are 14 training participants from Quality Assurance department, Jetty Operator, Weighbridge operator, PPIC staff, Logistc staff dan document controller Auditor Conclusions : Closed. 3.3 Identified Non-conformances against RSPO SCCS Requirements, Corrective Actions Taken and Auditors Conclusions NCR No of 04 The company has not procedure for outsourcing process to ensure that the process is already fullfill with RSPO SCCS requirements a Corrections : The company create new procedure regarding outsourcing activities Corrective Action :

17 Page 17 of 24 The company ensure all activities according RSPO SCCS requirement has procedure Verification result: The company has provides new standard operation procedure i.e outsourced program (QP/WINA-QA Rev.00 issued on January 27, 2015). The procedure has explained regarding mechanism to ensure the independent party complies with the intent and requirement of the RSPO Supply Chain Standard and mechanism of selection the transporter service third party. Auditor Conclusions: Closed NCR No of 04 The company not informed the certification body about the names and contact details of any new or changes of the contractor used for the processing or production Correction : Create or add information in outsoursed program that company will inform to CB if there is new or changes third parties/subcontractors. Corrective Action : The company will ensure if there are new or changes of third party/contractor used shall inform to the CB. Verification result : The company provide oursourced program (QP/WINA-QA Rev.0), the SOP explain logistics department is responsible to choose and monitor transporter but reporting of transporter service third party (new or changes) to CB according to RSPO SCCS requirement becomes responsibility of Management System Department. Auditor Conclusions: Closed NCR No of 04 The company still not have formal contract signed by both parties for PT Muara Lintas Surya and PT Cipta Prima Mandiri Corrections : Provide a contract between facility and oursource company (Transportation) and letter of commitment on behalf PT Muara Lintas Surya and PT Cipta Prima Mandiri. Corrective Action : Ensure that every contract made meet the RSPO-SCCS requirement Verification result: Company provide contract document with transporter companies and letter of commitment. The contract and letter of commitment has included RSPO-SCCS requirement such as will not relinquish legal ownership of the product during outsoursed process, will give certification body have access to the outsourcing contractor or operation if an audit is necessary, will comply to RSPO-MB requirement system. The contract has been signed by both WINA Gresik and outsourcing company such as, transporter (PT Muara Lintas Surya and PT Cipta Prima Mandiri). Auditor Conclusions: Closed NCR No of 04 The company has not informed the supply chain certification reference number in the B/L or Delivery Notes for products Distilled Caprylic capric Acid (DC-0810) and Sania Ultra Choco (Texturized Refined Hydrog-

18 Page 18 of 24 nated Palm Kernel Stearin) Correction : Provide certificate number on bill of lading document or delivery note or packing list for Distilled Caprylic capric Acid (DC-0810) and Sania Ultra Choco (Texturized Refined Hydrognated Palm Kernel Stearin) product Corrective Action : Ensure all document regarding delivery certified product must be comply RSPO SCCS requirement such as certificate number Verification result : Company provide evidence i.e. bill of lading no.tmssubtpp44929 and OOLU which has informed certificate number on behalf PT Wilmar Nabati Indonesia ( ). Auditor Conclusions: Closed 3.4 Conclusion and Approval for RSPO Supply Chain Certification The audit team has confirmed through the audit process that PT Wilmar Nabati Indonesia (WINA) Gresik has established and maintains an effective system to ensure compliance with the RSPO Supply Chain Certification System requirements (dated November 2011). It is also confirmed that the company s system to records annual volume of certified product sold for defined period will not exceeded the certified annual tonnages as claimed in the organization s RSPO certificate no. PT TUV Rheinland Indonesia recommends the maintaintenance PT Wilmar Nabati Indonesia - Gresik for certification of compliance to the RSPO Supply Chain Certification System requirements, after elimination of the major non conformities. The found non-conformities see section 3.3 above all non-conformities were eliminated and corrected.

19 Page 19 of CERTIFIED ORGANISATION S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY 4.1 Date of Next Surveillance Visit The next surveillance visit is planned for January Acknowledgements of Internal Responsibility and Formal Sign-Off by Client It is acknowledged that the assessment visit was carried out as described in this report and we accept the assessment findings and report content. Signed on behalf of PT Wilmar Nabati Indonesia Signed on behalf of PT TUV Rheinland Indonesia Purnomo Adi N Head of Management System Hendra Fachrurozy Lead Auditor

20 Page 20 of 24 APPENDICES Appendix 1: Details of Supply Chain Certification Certificate

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23 Page 23 of 24 Appendix 2: List of Abbreviations B/O CPO CSPO CPKO CPKOL CPKS FIFO MB P&C PKE PKO SCCS SI SO SLP SDD WB WINA Bill of Lading Crude Palm Oil Certified Sustainable Palm Oil Certified Palm Kernel Oil Crtified Palm Kernel Olein Certified Palm Kernel Sterin First In First Out Mass Balance Principles & Criteria Pal Kernel Expleler Palm Kernel Oil Supply Chain Certification System Shipping Instruction Sales Order Shipment Loading Detail (SLD); Shipment Discharging Detail (SDD) Weight Bridge Wilmar Nabati Indonesia Appendix 3 : Observations and Opportunities for Improvement No. Observations / Opportunities for Improvement 1 - Appendix 4 : List of supplier and buyer No. Nama Supplier Alamat No. Telp PT.Sinar Alam Permai - Kumai PT. Wilmar Nabati Indonesia - Bagendang PT. Mustika Sembuluh POM 1 PT. Kerry Sawit Indonesia POM 1 Jl. Pelabuhan Panglima Utar, Tanjung Kalaf, Kelurahan Kumai Hulu, Kecamatan Kumai, Kabupaten Kotawaringin Barat, Kalimantan Tengah, Indonesia Jl. HM. Arsyad KM 20, Desa Bapanggang Raya, Kecamatan Mentawa Baru, Kotawaringin Timur, Kalimantan Tengah, Indonesia Jl. Jendral Sudirman KM 62, Desa Pondok Damar, Kecamatan Mentaya Hilir Utara, Kabupaten Kotawaringin Timur, Kalimantan Tengah, Indonesia Jl. Jendral Sudirman KM 62 Sampit-Pangkalan Bun, Desa Sembuluh 1, Kecamatan Danau Sembuluh, Kabupaten Seruyan, Kalimantan Tengah, Indonesia / Contact Person Andreas Pradipta Hasyim Asari Novriandi Pardede Imung Putro Certificate No Supply chain model Mass balance Mass balance Mass balance Expiry Date 18 Februari Februari 2018 Mass balance 10- Aug Juni 2016

24 Page 24 of No. Nama Supplier Alamat No. Telp PT. Sarana Titian Permata PT. Bumi Sawit Kencana Kecamatan Seruyan Hilir, Kabupaten Seruyan, Kalimantan Tengah, Indonesia Jl. Sarpatim KM 34, Desa Tangar, Kecamatan Mentaya Hulu, Kabupaten Kotawaringin Timur, Kalimantan Tengah, Indonesia Contact Person Natalia Nensy Certificate No. Dewi Anggraeni MUTU- RSPO/022 SGS- RSPO/PM- MY13/01300 Supply chain model Mass balance Expiry Date Mass balance 29- Nov Oktober 2018 Appendix 5 : List of Certified Customer No. Nama customer Alamat Contact Person Certificate No. Supply chain model Expiry Date 1 FrieslandCampina PT.Kievit Indonesia Jl. Merpati No.1 Salatiga 50721, Indonesia Arif Mohtar C829955CU- RSPO SCCS SG/MB 14-Nov-18 2 Natural Oleochemicals SDN BDH PLO 428, jalan besi satu,81700 pasir gudang, Johor Malaysia Nagarathanam RSPO SC 0043 SG/MB 9-Sep-18 3 Wilmar Gavilon 60 Fulcrum Street, Richlands, Queensland, 4077 PO Box 106, Sumner Park BC, Queensland, 4074 Michael Fury Wilmar Europe Holdings BV Delftseplein 27G, 3013 AA Rotterdam, The Netherlands Gan Siow Pei C813306CU- RSPO SCCS SG/MB 22-Sep-17