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RSPO Principles & Criteria Main Assessment Report

Report Number CU818385

RSPOPC-SUM-REPORT.F01 OCT2013 of 33

Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia.

Tel: +603-3377 1600 / 1700

RSPO PRINCIPLES & CRITERIA PUBLIC SUMMARY REPORT

MAIN ASSESSMENT

Guatemala

EXTRACTORA DEL ATLANTICO S.A. Corporación Agro-Industrial del Caribe S.A.

2013

Report prepared by: Adriana Vargas Latorre (Lead Assessor)

Certification decision by: Nur Hadi (Certifier)

Certifying Office

Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa,

Off Jalan Sg Bertih, Teluk Gadong, 41100 Klang, Selangor, Malaysia [email protected]

Tel: +603-3377 1600 / 1700

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 45011 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 8-0025-06-000-00

RSPO Approval Date 12/01/2006

Affiliate Membership http://www.rspo.org/en/member/339

mailto:[email protected]

http://www.rspo.org/en/member/339





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Table of Contents

PART 1: SCOPE OF THE CERTIFICATION ASSESSMENT AUDIT .............................................................. 4

1.1 COMPANY AND CONTACT DETAILS ...................................................................................................... 4 1.2 RSPO MEMBERSHIP & CERTIFICATION DETAILS .................................................................................... 4 1.3 MAIN ASSESSMENT DETAILS ............................................................................................................. 4 1.4 ASSESSMENT TYPE ............................................................................................................................ 4 1.5 LOCATION OF THE PALM OIL MILL ....................................................................................................... 4 1.6 PALM OIL MILL OUTPUT AND APPROXIMATE TONNAGES CERTIFIED ........................................................... 4 1.7 GENERAL DESCRIPTION OF SUPPLY BASE .............................................................................................. 5

1.7.1 Location of the Supply Base ............................................................................................... 5 1.7.2 Statistics of the Supply Base and Estimated Tonnes of FFB produced per year ............... 5 1.7.3 Conservation and HCV Area (Ha) ....................................................................................... 5 1.7.4 Percentage of Planted Oil Palm by different Age Ranges ................................................ 5 1.7.5 Calculation of the Number of Production Units (N) to Sample for the Mill ..................... 5

1.8 PROGRESS OF ASSOCIATED SMALLHOLDERS OR OUT-GROWERS, IF APPLICABLE TO THIS ASSESSMENT ............. 5 1.9 LOCATION MAP FOR THIS CERTIFICATION UNIT (SEE APPENDIX 1) ........................................................... 5

PART 2: PARTIAL CERTIFICATION ........................................................................................................ 6

2.1 MANAGEMENT STRUCTURE ............................................................................................................... 6 2.2 NON-COMPLIANCE IDENTIFIED WITH 2.1 ABOVE ................................................................................... 6 2.3 SUMMARY OF THE TIME BOUND PLAN ................................................... ERROR! BOOKMARK NOT DEFINED. 2.4 UN-CERTIFIED UNITS OR HOLDINGS ...................................................... ERROR! BOOKMARK NOT DEFINED. 2.5 SUMMARY OF THE FINDINGS FOR PARTIAL CERTIFICATION ....................................................................... 9 2.6 PARTIAL CERTIFICATION AUDIT AGENDA .............................................................................................. 9

PART 3: AUDIT PROCESS...................................................................................................................... 9

3.1 ABOUT THE CERTIFICATION BODY ....................................................................................................... 9 3.2 AUDIT TEAM ................................................................................................................................. 10

3.2.1 Qualifications of the Lead Auditor ......................................................................................... 10 3.2.2 Qualifications of the Assessment Team ................................................................................. 11

3.3 AUDIT METHODOLOGY.................................................................................................................... 12 3.3.1 General Overview ............................................................................................................ 12 3.3.2 Assessment agenda for this Audit ....................................... Error! Bookmark not defined.

PART 4 ASSESSMENT FINDINGS ........................................................................................................ 14

4.1 LEAD ASSESSOR’S SUMMARY AND RECOMMENDATION FOR CERTIFICATION ............................................. 14 4.2 SUMMARY OF THE FINDINGS BY PRINCIPLES AND CRITERIA .................................................................... 15

Principle 1: Commitment to Transparency ..................................................................................... 15 Principle 2: Compliance with Applicable Laws and Regulations .................................................... 15 Principle 3: Commitment to Long-Term Economic and Financial Viability ..................................... 17 Principle 4: Use of Appropriate Best Practices by Growers and Millers ......................................... 17 Principle 5: Environmental Responsibility and Conservation of Natural Resources and Biodiversity ........................................................................................................................................................ 20 Principle 6: Responsible Consideration of Employees and of Individuals and Communities by Growers and Millers ............................................................................ Error! Bookmark not defined. Principle 7: Responsible Development of New Plantings ................................................................ 24 Principle 8: Commitment to Continuous Improvement in Key Areas of Activity ............................. 25

4.3 SAMPLE CRITERIA APPLIED DURING ANNUAL SURVEILLANCES ONLY & NOT APPLICABLE FOR THE MAIN

ASSESSMENT ............................................................................................... ERROR! BOOKMARK NOT DEFINED. 4.4 NON-CONFORMITY RAISED DURING THIS AUDIT AND ANY FROM THE PREVIOUS YEAR, IF APPLICABLE ......... 26

4.4.1 Non-Conformities Identified during this Audit ...................................................................... 26 4.4.2Non-were raised during the last audit as this is the Main Assessment. .. Error! Bookmark not defined. 4.4.2 Observations Raised During this Audit .................................................................................. 27





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4.5 ISSUES THAT WERE RAISED DURING THE STAKEHOLDER CONSULTATION, IF ANY ......................................... 28

PART 5: RSPO SUPPLY CHAIN CERTIFICATION ................................................................................... 29

5.1 POM INCLUDED IN THE SCOPE OF THE AUDIT ..................................................................................... 29 5.2 CONFIRMATION OF THE COMPANY’S SUMMARY OF ANNUAL CERTIFIED VOLUME OF RSPO CERTIFIED PALM

OIL AND PALM KERNEL OVER A SPECIFIED PERIOD ...................................................................................... 29 5.3 SUMMARY REPORT INCLUDING A BRIEF DESCRIPTION OF THE SCOPE OF CERTIFICATION ............................. 29 5.4 MONTHLY RECORDS OF CERTIFIED AND UNCERTIFIED FFB RECEIVED SINCE THE LAST AUDIT ........................ 30 5.5 MONTHLY RECORDS OF CERTIFIED CPO AND PK PRODUCED SINCE THE LAST AUDIT .... ERROR! BOOKMARK NOT

DEFINED. 5.6 RECORDS OF CERTIFIED CPO & PK SOLD UNDER GREENPLAM TO BUYERS SINCE THE LAST AUDIT, IF ANY....... 30 5.7 RECORDS OF CERTIFIED CPO & PK SOLD UNDER UTZ ETRACE TO BUYERS SINCE THE LAST AUDIT, IF ANY ...... 30 5.8 NON-CONFORMITIES IDENTIFIED DURING THIS AUDIT ............................................................................ 30 5.9 DESCRIPTION OF THE ORGANIZATIONAL MANAGEMENT SYSTEMS ............................................................ 31 5.10 FINAL CERTIFICATION DECISION BY CONTROL UNION FOR THE RSPO SCCS AUDIT OF THE POM .............. 31

PART 6: CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY ........... 32

6.1 DATE OF NEXT ASA ........................................................................................................................ 32 6.2 DATE FOR CLOSURE OF NON-CONFORMITIES ...................................................................................... 32 6.3 SIGNING BY THE CLIENT ................................................................................................................... 32 6.4 SIGNING BY THE LEAD AUDITOR ........................................................................................................ 32 6.5 SIGNING BY THE CERTIFIER ............................................................................................................... 32

PART 7: APPENDICIES ........................................................................................................................ 33

APPENDIX 1: LOCATION MAP FOR THIS CERTIFICATION UNIT .......................................................................... 33





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PART 1: SCOPE OF THE CERTIFICATION ASSESSMENT AUDIT

1.1 Company and Contact Details

Company Name: Corporacion Agro-Industrial del Caribe S.A.

Business Address: Km. 273.5 Carretera al Atlántico, Finca Dublín, Morales, Izabal, Guatemala

Contact Person: Pedro Cerrate/Jose Montenegro

Office Telephone: (502) 2207-3025/ (502) 5951-8644/ (502) 5696-8773

E-Mail: [email protected] / [email protected]

Web Site: www.agrocaribe.com / www.agroamerica.com

Other Certifications Held: BASC; Raintforest Alliance; Unilever;

1.2 RSPO Membership & Certification Details

RSPO Membership Number: 100690800000

Registered Client Name: CU818385

Certificate Number: TBD, pending RSPO Approval

Start Date Of Certificate: TBD, pending RSPO Approval

End Date Of Certificate: TBD, pending RSPO Approval

Date Of Original Certification: TBD, pending RSPO Approval

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 Main Surveillance Assessment Details

Dates Of This Audit: 26th

-30 November 2013

Audit Number: Main Audit

1.4 Assessment Type

This is a RSPO Principles &Criteria Compliance assessment of the palm oil mill and its respective supply bases as listed in this report below.

1.5 Location of the Palm Oil Mill

Name Palm Oil Mill

Mill Capacity

Location GPS Reference

(POM) MT/Hour Address Longitude Latitude

Extractora del Atlantico S.A.

60 MT/hour

Km. 276 Carretera al Atlantico, Camino Aldea Champona,

Guatemala 88°33´35.32917” W 15°34´58.65136” N

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 YYYY/YYYY (MT)

Projected 12 Months (MT) Forecast Certified in this Report

FFB CPO PK FFB CPO PK FFB CPO PKO

N.A. N.A. N.A. N.A. N.A. N.A. 52,870 4,100



http://www.agrocaribe.com/

http://www.agroamerica.com/





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246,969

1.7 General Description of Supply Base

Agrocaribe S.A. has an Extractora del Atlantico S.A. palm oil mill and its supply base is own Agrocaribe plantation. The area of oil palm planted is 8,968.54 hectares (mature and immature). The mill processing capacity is 60 ton FFB per hour. The mill receives FFB only from own plantations. The 2012 Guatemala Local Interpretation of RSPO P&C was used to assess the palm oil mill and estates.

1.7.1 Location of the Supply Base

OPP Oil Palm

Plantation Location GPS reference Area Summary (Ha)

Name Address Longitude Latitude Total Mature

OPP 1 Agrocaribe S.A. Morales, Izabal 88°33'54.27"W 15°33'54.72"N 10,142.55 7,989.49

TOTAL 10,142.55 7,989.49

1.7.2 Statistics of the Supply Base and Estimated Tonnes of FFB produced per year

OPP Oil Palm Plantation Estimated FFB/Year (MT) Planting Years Cycle (Years)

OPP 1 AgroCaribe 242,571.27 1999-2013 33-45

TOTAL 242,571.27

Only use data from 1.7.3 in the eTrace Summary

1.7.3 Conservation and HCV Area (Ha)

OPP Oil Palm Plantation Conservation Area (Ha) HCV Area (Ha) * HCV part of Conservation

OPP 1 AgroCaribe 45.04 45.04 Yes

TOTAL 45.04 45.04

* Indicate if HCV area is part of the Conservation Area. If the HCV area is part of the Conservation Area, then “YES” otherwise, “No”

1.7.4 Percentage of Planted Oil Palm by different Age Ranges

OPP Planting Years by 5 year Ranges

1999-2000 2001 -2005 2006 – 2010 2011 – 2013 Total

OPP 1 31% 40% 16% 12% 100%

1.7.5 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

1 1 N.A. -

Explanation as to the selection of estates sampled

Based on the sample formula N = 0.8√Y, the only one own plantation was visited.

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

N.A. There is no an associated smallholder or out grower declared in this audit. They work only with own plantation.

1.9 Location Map for this Certification Unit (See Appendix 1)





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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”

2.1.1 Is the certified operation (POM and supply base as detailed above) a stand-alone operation and there are no other plantations or mills owned by the same company?

No Section 2 is N/A

Go to 2.1.2

2.1.2 Is the certified operation part of a simple structure of operations owned by one company?

Yes Go to 2.1.5 Go to 2.1.3

2.1.3 Are there statements of the ultimate controlling shareholders and directors in the managing agency company/companies:

a. Explaining the legal relationship and the management arrangements with the subsidiary companies and / or with any operating groups?

- Go to 2.1.4

Go to 2.2.1

2.1.4 b. A statement of commitment to complying 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?

- Go to 2.4 Go to 2.2.2

2.1.5 Is there a time bound plan in place for all subsidiaries, estates and palm oil mills?

Yes Go to 2.3 2.2.3

2.1.6 Is the parent company or one of its majority owned and / or managed subsidiaries a member of RSPO.

Yes

2.2 Non-compliance Identified with 2.1 Above

Section Non-compliance findings NC raised Category

2.2.1 There is no explanation as to the company’s structure and therefore it Is not possible to conduct an effective audit against the rules for partial certification.

- Major

2.2.2 There is no statement of commitment to complying with the spirit of the RSPO for all companies within the company structure.

- Major

2.2.3 There is no time bound plan in place for the certification for all subsidiaries, estates and mills.

- Major

2.2.4 No applicable membership of the RSPO. - Major

2.3 Summary of the Time Bound Plan

Section Requirement Findings and any action required Compliance

2.3.1 Does the plan include all subsidiaries, estates and mills?

Yes, the plan includes subsidiaries belonging to the group, 1 mill AGROFRANCIA S.A and it own plantation as supply base. There is a forecast to have the mill and plantation certified in 2015. “ Compliance Partial Certification Program” record.

Yes

2.3.2 Is the time bound plan challenging? Age of

plantations. Location. Mill

The time bound plan is appropriate as Agrocaribe is being audited in the Main assessment on November 2013 and also Agrofrancia POM started operations on July 2012.

Yes





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development. Infrastructure. Compliance

with applicable law.

2.3.3 Have there been any changes since the last audit? Are they justified?

Since this is the first main audit for the entire group, therefore this will be evaluated next surveillance audit.

Yes

2.3.4 If there have been changes, what circumstances have occurred?

Since this is the first main audit for the entire group, therefore this will be evaluated next surveillance audit.

Yes

2.3.5 Have there been any stakeholder comments?

No comments from stakeholders received before and during the assessment.

Yes

2.3.6 Have there been any newly acquired subsidiaries?

No Yes

2.3.7 Have there been any isolated lapses in the implementation of the plan?

This is the Main Audit for this company. It will be evaluated in upcoming surveillance assessment.

Yes

2.3.8 Has there been any systematic failure to proceed with the implementation of the plan?

With the revised time bound plan, the actual implementation effectiveness will be reviewed within the next surveillance assessment of any unit from time to time.

Yes

2.3.9 General statement as to progress made since the last audit?

N.A. This is the Main Audit for Agrocaribe. Yes

2.4 Un-Certified Units or Holdings

NOTE: Companies may demonstrate compliance by clear evidence of a self-audit (i.e. an internal audit for all subsidiaries, estates and Palm Oil Mills)

Section Requirement Findings and any action required Compliance

2.4.1 Did the company conduct an internal audit? If so, has a positive assurance statement been produced?

Agrocaribe has conducted an internal audit on January and April 2013 for Agrofrancia including RSPO and Raintforest Alliance programs. Furthermore, insufficient records to demonstrate that the internal audit has took place for all requirements under RSPO P&C. This is raised as minor non-compliance

Yes Minor NC

2.4.2 No replacement after dates defined in NIs Criterion 7.3 of:

Primary forest.

Any area identified as containing High Conservation

Agrocaribe has done Historical Analysis of Land Use on 2011 for Agrofrancia. Using through orthophotos from 2002 for all estates, it analysis includes also affidavits by neighbours before a notary public declaring the use land and confirming that for more than 10 years the use of the land has been for agriculture activities as rubber, tomatoes, even palm oil and banana crops, also land dedicated to livestock. Environmental Impact Assessment Studies was conducted on November 2011 for Agrofrancia POM by local environmental company.

Yes





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Values (HCVs).

Any area required to maintain or enhance HCVs in accordance with RSPO criterion 7.3.

Historical Analysis of Land Use concluded primary forest has not been replaced from before 2005 and not HCV´s in place.

2.4.3 Any new plantings since January 1

st

2010 must comply with the RSPO New Plantings Procedure.

At present, Agrocaribe with the previous assessments done is in the process of carrying out all the necessary HCV and SEIA assessments to complement all the requirements for RSPO-P&C, which is set to take place on 2014. The processes are still in progress. The evaluation will be done by Bioterra consulting.

Yes

2.4.4 Any Land conflicts are being resolved through a mutually agreed process, e.g. RSPO Grievance procedure or Dispute Settlement Facility, in accordance with RSPO criteria 6.4, 7.5 and 7.6.

There is not land conflicts evidenced. Yes

2.4.5 Any Labor disputes are being resolved through a mutually agreed process, in accordance with RSPO criterion 6.3.

No labour disputes noted. Yes

2.4.6 Any Legal non-compliance is being resolved in accordance with the legal requirements, with reference to RSPO criteria 2.1 and 2.2.

No disputes in legal compliance noted. Yes

TIME BOUNDP PLAN FORECAST FOR RSPO CERTIFICATION OF ALL PALM OIL MILLS & SUPPLY BASES

Palm Oil Mill Country Supply Bases (estates,

plantations, associations) Targeted RSPO

Certification Year Current Certification

Status as per this Audit

Agrofrancia S.A. Guatemala Agrofrancia S.A. 2015 Pending

(Add more lines as required)





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With reference to time bound plan, the following issues were reviewed openly with the Control Union audit team during the assessment and which may be in conflict with the rules for partial certification, if applicable

Name of Mill or Plantation *Area of concern (See examples below)

N.A.

Include any known concerns, media reports and major issues both present and from the past covering, for example:

Replacement of primary forest or any area containing HCV’s since November 2005.

Evidence of non-compliance with the law

Legal issues

Compensation payments

Social relations

Burning

Labor disputes

2.5 Summary of the findings for Partial Certification

The audit team assessed compliance with the above requirements during this audit. Failure to address any non-compliance identified may lead to certification suspension.

Agrofrancia S.A. is a registered company on 2010 and holding to Agrocaribe S.A. POM Agrofrancia started activities on July 2012. The company has made the decision to include Agrofrancia Mill into certification by year 2015 from now to adhere to the rules of partial certification. Land conflicts, labour disputes and none legal non compliance were not noted. More investigation will be carried out during next surveillance audit to monitor the progress. The continued implementation of RSPO requirements are in place. Overall findings are satisfactory; however, there are still opportunities for improvement especially on internal audit procedures to ensure all requirements are evaluated. Concerning the potential overlook of the implementation of the RSPO internal audit procedure, a minor non-compliance is raised.

2.6 Partial Certification Audit Agenda

Date Location Agenda

26-11-2013 Agrocaribe S.A. Office- Izabal Partial Certification Review with client representatives

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 45011 for the inspection and certification of CUC Organic program (according to the EU regulation 2092/91) and EUREPGAP program. When requested a copy of the accreditation certificate can be obtained from CUC.

Control Union (Malaysia) Sdn Bhd is a registered affiliate member of RSPO and is a private limited company owned by the Control Union World Group based in Malaysia. Control Union (Malaysia) Sdn Bhd is authorized to conduct and issue certification on behalf of RSPO and Control Union Certifications.





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3.2 Audit Team

Lead auditor: Adriana Vargas

Team member 1: Judith Ramirez

Team member 2: Manolo de La Cruz

Team member 3: Luis Alberto Palacios

3.2.1 Qualifications of the Lead Auditor

Requirement Qualifications

A minimum of post high school (post-secondary school) training in either agriculture/forestry, environmental science or social sciences;

Agriculture Engineer 2006 with more than 3 years working experience in plantation Experience in audit RSPO, Global Gap, and Organic farming auditing.

At least 5 years professional experience in area of work relevant to the assessment (e.g., palm oil management; agriculture/forestry; ecology; social science);

More than 5 years working experience in plantation. Involved in RSPO auditing since 2007. Fully trained in similar agriculture certification program such as Global Gap, Starbucks, 4C, Organic farming auditing, and Phillip Morris International (GAP and ALP-Agriculture Labor Practices).

Training in the practical application of the RSPO criteria, and RSPO certification systems;

Involved in RSPO assessment since 2007. Member of CUC RSPO audit team. Involved in audits conducted in Colombia; Guatemala; Malaysia and Indonesia.

Successfully completion of an ISO 9000:19011 lead auditors course;

Successfully completed ISO 9001:2008 lead auditor course in May 2008.

Training in the practical application of RSPO certification systems.

Involved in RSPO assessment since 2007. Member of CUC RSPO audit team. Involved in audits conducted in Colombia; Guatemala; Malaysia and Indonesia

A supervised period of training in practical auditing against the RSPO criteria or similar sustainability standards, with a minimum of 15 days audit experience and at least 3 audits at different organizations.

Involved in RSPO assessment since 2007. Member of CUC RSPO audit team. Involved in audits conducted in Colombia; Guatemala; Malaysia and Indonesia in 6 different companies.

RSPO endorsed lead auditors course. No

Signed code of conduct. Yes, signed with CUC

General knowledge of:

RSPO P&C standards. Sound knowledge of the P&Cs, National and Local Interpretations.

CUC organizational structure. Yes, Sound knowledge and understanding on CUC Organizational Structure. Received training and worked as assistant certifier.

CUC quality systems. Yes, Sound knowledge and understanding on CUC quality systems. Received training and worked as assistant certifier.

Lead auditor role. Received training on ISO9001. Conducted audits as lead auditor for Quality Management System in programs as Globalgap-Opt2. Full experience in techniques of audit under ISO9011

Report writing. Extensive experience in report writing.

Stakeholder consultation. The process and need for this is fully understood.

Certification decision process. Full understanding.

RSPO SCCS program manual. Full understanding.

CUC filing systems. Full understanding.





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Correct use of RSPO trademarks. Full understanding.

History and objectives of RSPO. Full understanding.

CV available. Available in CUC system.

Completion of CUC RSPO lead auditor training. Completed & Passed CUC RSPO Lead Auditor training in 2013

3.2.2 Qualifications of the Assessment Team RSPO Requirement Team Member Name Qualifications

Fluent in main local languages and English.

Judith Ramirez Fluent in Spanish local language (Guatemalan citizen) and able to understand English.

Manolo de La Cruz Fluent in Spanish local language (Guatemalan citizen) and able to understand English.

Luis Alberto Palacios Fluent in Spanish local language (Guatemalan citizen) and able to understand English.

Field working experience in the palm oil sector, or a demonstrable equivalent.

Judith Ramirez Advised, implemented and carried out Internal audits to producers under sustainability requirements for Rainforest Alliance in bananas, coffee, flowers and oil palm crops.

Manolo de La Cruz Advisor in productive projects for coffee.

Good agricultural practices (GAP), integrated pest management (IPM), pesticide and fertilizer use.

Judith Ramirez Verifier for C.A.F.E. Practices Starbucks in coffee. Verifier for AAA Nespresso for coffee. Internal Audit for Raintforest Alliance in different companies.

Manolo de La Cruz Agronomist Engineer. Advisor of productive projects.

Health and Safety auditing on the farm and in processing facilities. (For example OHSAS 18001 or occupational. Health and safety assurance system).

Judith Ramirez Conducted audits socio-environment as lead auditor for Rainforest Alliance Certified in bananas, coffee, flowers and oil palm crops.

Manolo de La Cruz Experience in certifications of sustainability and organic production. Rainforest Alliance; UTZ; Starbucks and 4C.

Luis Alberto Palacios Experience as Human resources manager with competence on local and regional mandatory regulations. Involved as expert in integrated second party protocols audits by Campbell´s; Unilever; PriceSmart and Subway. Trainer of labor inspectors of the Work Ministry of Guatemala.

Workers welfare issues and social auditing experience. (For example with SA8000 or related social or ethical accountability codes).

Judith Ramirez Conducted audits socio-environment as lead auditor for Rainforest Alliance Certified in bananas, coffee, flowers and oil palm crops.


Luis Alberto Palacios Experience as Human resources manager with competence on local and regional mandatory





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regulations. Involved as expert in integrated second party protocols audits by Campbell´s; Unilever; PriceSmart and Subway. Trainer of labor inspectors of the Work Ministry of Guatemala.

Environmental and ecological auditing. (For example experience with organic agriculture, ISO 14001 or environmental management systems).

Judith Ramirez Environmental Engineer.2009. Advised, implemented and carried out Internal audits to producers under sustainability requirements for Rainforest Alliance in bananas, coffee, flowers and oil palm crops. Lead auditor for Rainforest Alliance certified. Verifier for C.A.F.E. Practices Starbucks in coffee. Verifier for AAA Nespresso for coffee. Assistant for Environmental Impact Studies.


Economic issues. Judith Ramirez Conducted audits socio-environment as lead auditor for Rainforest Alliance Certified in bananas, coffee, flowers and oil palm crops. Verifier for C.A.F.E. Practices Starbucks in coffee. Verifier for AAA Nespresso for coffee.

Manolo de La Cruz Experience in certifications of sustainability and organic production. Rainforest Alliance; UTZ; Starbucks and 4C. Advisor for productive projects with commercialization and financial issues.

Luis Alberto Palacios Experience as Human resources manager with competence on local and regional mandatory regulations. Involved as expert in integrated second party protocols audits by Campbell´s; Unilever; PriceSmart and Subway. Trainer of labor inspectors of the Work Ministry of Guatemala.

3.3 Audit Methodology

3.3.1 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.





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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.

3.3.2 Assessment agenda for this Audit

Date Location Main activities

25th

November 2013. Monday

Bogotá-Ciudad de Guatemala

Lead Auditor Travelling.

26th

November 2013 Tuesday

Agrocaribe S.A. Office

Izabal

7:00 All Auditors Travelling: Guatemala City to Izabal

2:00 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

3:00 Documents Review

Partial Certification Review with client representatives

27th November 2013 Wednesday

Agrocaribe Plantation

7:00 a.m. Field operations

Worker interviews

Chemical stores

Workshops

Environmental

Field

Stakeholder Interviews

Local communities

Medical

Schools

Housing





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28th

November 2013 Thursday

Extractora del Atlántico S.A.

POM

8:00 am Supply Chain Certification Assessment of the POM (RSPO SCCS)

Mill inspection

Workshops

Stores

POM application

Document review

Field operations

Worker interviews

Chemical stores

Workshops

Housing

Medical

29th

November 2013 Friday

Meeting Room 08.00am Additional field visits and meetings with managers as necessary Report writing- 15.00-18.00 Audit Findings Discussion - All Auditors

30 November 2013 Saturday

Meeting Room 9:00 Preparation for closing meeting 11:00 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

Agrocaribe S.A. is applying to the Main assessment for RSPO P&C and the verification for RSPO SCCS. The Extractora del Atlantico mill and it own supply base are located in Morales city, Izabal Department, Guatemala. The total mature area planted in oil palm is 7,989.49 hectares. The mill processing capacity is 60 ton FFB per hour. These units were assessed at field, office, facilities, store and document review, carried out in accordance to the 2012 Guatemala Local Interpretation of RSPO P&C. Specific evidence was recorded for estate and mill. Interviews with Estate Managers, Mill Manager,committees and workers from estate and the mill took place in both formal and informal environments. The subscribed RSPO management system’s documentations seen have been adjusted to the operation of the company and is conducted in proper manner to compliance with the RSPO requirements. The management is highly committed in maintaining the RSPO system by adopting to continuous improvement programs. The stakeholder´s meeting was conducted without the presence of the management staffs. During this meeting the feedback from stakeholders indicated no negative feedback and positive comments were received.





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Also, complaints were not received during the field assessment or any other external stakeholders or from the public announcement in the RSPO website. Agrocaribe S.A. has in its group to Agrofrancia S.A., this company has La Francia mill with its own plantation as supply base. Agrofrancia S.A. has been verified under partial certification rules. Under partial certification rules, a minor non-conformity was raised, see PART 2 above. See part 4.3.1 for non-conformance raised. The Extractora del Atlantico mill is fully verified for RSPO SCCS system verification and Non conformities were found. See part 5.7 for non-conformance raised.

It is therefore the recommendation of the lead assessor that:

Subject to closure of Major non-conformities, the certificate of compliance can be awarded. Signed: Name: Adriana Vargas L. Date: 27-05-2014

4.2 Summary of the findings by Principles and Criteria

Over the 5 year period of the life of the certificate, there will be 4 annual surveillance audits

Identified Non-Conformities and noteworthy Positive and Negative Observations.

The RSPO require that this report contain findings by each principle and some example criteria. Please see table below.

Principle 1: Commitment to Transparency

Criterion by Audit

Summary

The company has established a mechanism to provide information to any third part interested. Thus far, requesting has not been done by any third part. Documents are available upon public request in exception for confidential financial documentation. Records of requesting and it feedback will be kept by 3 years.

MA 1.1 Any information requesting for POM and state will be received and processed by the Human Resources Department. Thus far, the company has provided information through the stakeholder´s meeting. Copies of information processed are available. From January and October2013, 51 requesting for help to the community was evidenced with responses in adequately manner and timely. Requesting of information relevant to RSPO criteria has not been done by any third part. But is evidenced an effectively mechanism to manage this requesting. Also, the company considers information in kekchi language for indigenous community and workers. Records of requesting and it feedback will be kept by 3 years.

MA 1.2 Legal, environment, social, OSH and continues improvement plan documents are considered as publicly available upon request. Also, the company maintains a Agrocaribe´s Standard Operating Manual, which mention what document is confidential to company such as financial and company strategy, intellectual property and others issue is think to give negative effect to company.

Principle 2: Compliance with Applicable Laws and Regulations

Criterion by Audit Summary

The company has a comprehensive system for ensuring all estate and mill managers are up to date with the applicable laws and they have an internal monitoring system to ensure compliance.

MA 2.1 A documented system “Guatemalan law applicable according to the criteria of the





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RSPO standard for the cultivation of oil palm” is in place, and including written information on legal requirements applicable to RSPO. The laws in the system are monitored by a local lawyer who reviews, analyzes and reports on a monthly base any change in the legislation. Head office will analyse the applicability of the law on the operation and where applicable, the new regulation is approved by the director of the company for implementation in all operation units. The changes are included in the system and communicated to several people through a group email contact (mailing). Every chief department is responsible for implementation. The company evidenced compliance with relevant legal requirements during the audit. 1. Company registration Corporacion Agro-Industrial del Caribe S.A. No.

313726/753/240 4th June 2009. 2. Company registration Extractora del Caribe S.A. No. 313573/600/240. 3th June

2009. 3. 168 Land titles were evidenced 4. License storage oil and petroleum products no. DEP-0072 and DEP-0801. 14th

Sept2011 and 1st Feb2010 respectively by Ministry of Energy and Mines. 5. Approval of environmental Assesment No. 131-2013/DIGARN/UCA/JGRS on 13rd

March 2013 by Ministry of the Environment and Natural Resources of Guatemala to Agrocaribe Plantations.

6. Enviromental Assesment License No. 635-2013/DIGARN 8th March 2013 by Ministry of the Environment and Natural Resources of Guatemala for Agrocaribe Plantations to Extractora del Atlantico-POM

7. Interior Working Rule, Agro-Caribe: Granted by Ministry of Labour, No. 0001319, dictamen N. 13-2004, issued on January 9, 2004.

8. Interior Working Rule, Extractora del Atlántico POM, No. 0003273, dictamen N. 194-2006, issued on October 25, 2006.

9. Related to the labour, the company comply with the labour regulation. 10. Sanitary Licence for food production areas in Extractora del Atlántico POM and

Camps: Granted by Ministry of Health, Dirección de Area de Izabal, Licence N. 07-2013, Register N. 07-2013, issued on August 16, 2013.

11. Occupational health & safety program for year 2013 includes the activities of objective, purpose, period of training and person in charge.

Extractora del Atlántico S.A. POM is the first oil palm company certified under Business Alliance for Secure Commerce –BASC. The politics is focused to granted reasonable and appropriate business practices to prevent abuse of the legal structures of the company by asset launderers and financiers of terrorism. With this standard the company has established a mechanism to inform authorities about suspicious money laundering and terrorist financing activities in the sector. This politic also is adopted by Agrocaribe and it own plantation.

MA 2.2 The company keeps open communication with the community. Acts were evidenced N. 03-2023 and 04-2013, on February 2013, about meeting with local communities to consult about customary rights at Puerto Barrios and Morales municipalities, Izabal Deparment. Also the company evidenced the consultation on the background and use of the land before the project implementation on areas planted in 2005. Records of declarations made before a notary on use land and property by neighbors. Conflicts of land tenure in the region are not evidenced. Communities have not referenced any land legal problem with Agrocaribe during Stakeholders meeting. However, The company has complaint & grievance procedure to handle any disputes arises. The company keeps 168 Land tittles right available for 10,041.84 hectares from the 10,142.55. So, the company has not documents of land tittles for 100.71 hectares. Minor NC was raised. OBS. Growing areas have their boundaries defined by roads, live fences (trees). Some areas





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have barbed wires. Some areas need to improve the maintenance.

MA 2.3 The company keeps open communication with the community. Acts were evidenced N. 03-2023 and 04-2013, on February 2013, about meeting with local communities to consult about customary rights at Puerto Barrios and Morales municipalities, Izabal Department. As result of these meeting constumary rights were not identified. Communities have not referenced any land legal problem with Agrocaribe during Stakeholders meeting.

Principle 3: Commitment to Long-Term Economic and Financial Viability

Criterion by Audit

Summary

A documented operational plan and budget covered operational strategies to meet the plan and budget have been prepared for the estate and mill by the Agrocaribe Group. No replanting programme in the near future as the palms are relatively still young.

MA 3.1 An Agrocaribe Business Plan 2013 was evidenced. A detailed breakdowns of costing and estimated profits are filed and captured in Financial and Operating Summary with projections from 2013 till 2017 on yearly basis which has included direct and indirect cost with sub-description of each activity and requirement to sustain the business. For the POM this includes CPO production, Palm Kernel production, forecast price of CPO & PK, the OER (Oil Extraction Rate) and KER (Kernel Extraction Rate), profit and operational cost. The company has not planned for replanting as it is projected from year 2020 onwards.

Principle 4: Use of Appropriate Best Practices by Growers and Millers

Criterion by Audit

Summary

The mills and estates have a complete set of SOP and there was evidence that these have been implemented and continuously monitored. Soil fertility is being maintained in the fields and erosion prevention is constantly carried out. IPM is being implemented in all 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. Trainings are conducted for all workers and contractors as per the Annual Training Plan.

MA 4.1 SOP has been developed for all activities. 33 Standard operation procedure for the estate from receiving FFB up to harvesting and dispatch to Mill. The SOPs are coded from PA01 till PA33 and they are available and are regularly updated. Some procedures were checked during interviews: Pest and disease procedure; Fertilizer procedure; Harvesting procedure; Land conservation procedure, among others. There are standard operation procedures for Extractora del Atlantico-POM in each operation. The procedures are coded from P.A.1.1 till P.A. 8.2. The procedures are available in place and regularly updated. Some procedures were checked: Incoming FFB inspection procedure; Traceability check points for palm products and Laboratory procedure, sterilizer temperature and time records, steam flow record, water usage records, chemical test records, process control general sterilisation and threshing data, mill losses on FFB, boiler water control. Monitoring of the implementation is done through records of every activity. The field supervisor produce regularly reports for the Chief Agricola Department. On the mill the process is monitoring constantly, any deviation can interrupt the productive process. Records of mill procedures for its implementation have been checked to ensure that the process are effective.





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MA 4.2 The company has records, measurements and graphical analysis of production, from a physical-chemical soil fertility analysis, which serves as a baseline to show the balance of nutrients in the plantation. Annual leaf, soil and rachis sampling and analysis are done. In 2013 samplings were carried out and analysis conducted by CIA. U de Costa Rica. Based on the result, fertilizer Plan is developed and sent to the operating units. Checks on the records of fertilizer application 2013 indicate the fertilizer application is done based on the recommendations. Registration is carried out by the responsible sector and reports to District Manager. The availability Organic matter is a variable calculated in the soil analysis. And organic matter is a resource included in the fertilization plan. Nutrient recycling strategy is done by returning pruning leaves, rachis, and fiber and sludge palm plantations from the decomposition of organic matter so they can incorporate it into the soil. Also sub-products of the mill as bunches residues and ash are returned to the soil. Records of these returning are carried out. Records were available: Rachis: 13094.5 Tm; Fibre: 2407.9 Tm; Mud: 3312.9 Tm; Ash: 1518.3 Tm and Cuesco: 64.7 Tm.

MA 4.3 The existence of maps that fragile soils observed was verified. Most of the lands of productive units have slopes below 3-5%, making it a relatively flat ground; there is an area of 600ha with 5% slope where individual terraces have been implemented to prevent erosion soil. It was found with on-site visit. Soil erosion is prevented through the following methods: - The planting of cover crops such as Pueraria. - Application of mill sub-products, providing vegetative cover to prevent erosion

(from wind and water), and this practice ensures that the soil is always kept mulched.

- Annual operating plan for the maintenance of internal roads by engineering department is available. This Plan detail the type of road maintenance works to be carried out in each estate block and the cost involved in doing so.

MA 4.4 The water needs of the company are in the agrochemicals mixing in the plantation and the water use in mill process. The plantation does not have irrigation system, because the precipitation is 2800 mm/year in average in the zone. However, 4 meteorological stations were installed within the project area. Feature measuring various weather variables (wind speed and direction, temperature, rain gauge, solar radiation, luminosity, evapotranspiration). Riparian zones are maintained along the 2 rivers that cross the production units that have evidenced slope protection, reforestation on the banks of canals and riverbed. A more than 40 meter zones were maintained on the left and right side of the river. Sign boards are available to demarcate the buffer zones. Mill: A rational water management plan procedure documented was development to the mill. It includes a flow chart on usage of the water for boiler with intention to operate the boiler efficiently at optimum level. 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. On the mill a registration of water consumption was noted by MT of fresh fruit (1.2 M3 / 1,000 tonnes of fresh fruit), It was found that there are practices to minimize water consumption per ton of processed fruit (reuse, reverse osmosis water treatment)





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MA 4.5 IPM Plan managed by Production Chief. It is developed and implemented in the production unit. Technical staff daily monitors the situation and behavior of pests through a trapping system established production units (palm pests are ants, rats and Rhinchophorus palm and red ring disease) Census record shows no serious attack. New pest, also is monitored in case of appearance is recorder. No new pest found in the last 12 months. There is evidence that staff responsible for monitoring and implementation of Integrated Pest Management is constantly trained to develop properly, the literature used in the training, the list of participants and evaluation of knowledge are reviewed. Also, records of the qualifications of plant health technical assistants are available and show the personal is qualified to conduct the IPM. Monitoring of plant health plans are development for the same company as regional or national programs are not in the region. Pesticide toxicity units are monitored by each active ingredient and it is calculated based on LD 50(Mg/Kg), chemical usage, total a.i. 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.

MA 4.6 The company only uses the approved agrochemicals as per WHO and local authority. No uses of 1A or 1B were evidenced. All other chemicals used and in stock are under class II and below. The agrochemicals used are for the targeted species and proven by records where the agrochemicals being used and for the type species. Document of justification of agrochemical was demonstrated according to the monitoring system of pests and diseases and to establish indicators of economic thresholds. Only circle, spot and path spraying and confirmed no aerial application. The monitoring and control of agrochemical application showed that adequate records are maintained to demonstrate the use of pesticides, amount of area treated by Ha, the number of applications, the person who applied and the time when it was applied. Sprayers were trained how to properly applied the agrochemicals, even in Kekchi language. During the interview with the workers in fields, most of them are able to understand the content of SOP. Women no manipulate agrochemical. Annual Medical Surveillance for 2013 was done. Cholinesterase analysis Records for 38 workers available. Plan in place for the storage, handling, use and disposal of agrochemicals and containers. During the inspection, the store are in proper condition complete with bund, good ventilation, sufficient spillage kits such as saw dust, rags, mop, MSDS or CSDS in place at suitable locations.

MA 4.7 Agrocaribe has a policy established on occupational health and industrial safety, it is communicated through publications in different areas, also a video in Spanish and kekchi language. In the areas of production and the extraction was evident that plans at different levels of the organization are implemented, evidence of monitoring the implementation through records for both field and the mill was found. The company has a clinic into their installations. The clinic is responsible for attending any minor accidents or requirement on workers health. Also, workers are affiliated to social system. IGSS. Guatemalan Institute of Social Security. Insurance against accidents for all workers is done through a Collective Insurance Policy No. 11,309 APCL by local insurance company. Records of incidents and accidents and disability takes hours are carrying out by the clinic of the company. An industrial safety and occupational health committee was recently conformed and





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have defined rules of work. This committee is responsible for maintenance, developing and implementing action plans to prevent incidents and accidents as result of Labour risk assessment. The committee has a training program, documented and implemented on industry safety and occupational health for the mill and production units, the participation of workers was evidenced in the trainings records and during interviews. The training program includes OSH, SOP procedures, emergency, and fire extinguisher. Training programs developed for each processing stages, such as sterilizer, threshing, pressing, clarification, empty bunch treatment, kernel, water treatment boiler, workshop, warehouse, among others. First aid kits available in all work areas in the field (mobile first aid kits for every 7 workers are available) and in the mill. The clinic of the company has an ambulance. Using of PPE was evidenced in all areas of work where is required.

MA 4.8 For induction training a video is showed to the new employee covering all the activities and politics of the company, it is given in Spanish and kekchi language. Sighted the training calendar for 2013. The trainings being splits into OHS. The list also indicates on whom to attend the allocated trainings.

Principle 5: Environmental Responsibility and Conservation of Natural Resources and Biodiversity

Criterion by Audit

Summary

Environmental Impact Assessment has been carried out by the mill and estates dated in 2011. A comprehensive identification of all waste has been recorded and scheduled disposal of waste has been carried out by an approved and registered collector. Monitoring and analysis of waste is carried out regularly. Replanting programs are planning in the future more than 7 years and zero burning policy companywide. Mill has identified relevant waste from the operation and also was recognized source of the waste to reduce and further handling method to be taken. The mill has documented fossil fuel usage.

MA 5.1 1. Environmental Impact Assessment (EIA) was developed and implemented by the plantation since 2003. Document: “Agrocaribe Project´s Environmental Diagnosis” for states. 2. Environmental Impact Assessment (EIA) carried out in 2003 (Document: Extractora del Atlantico-POM Project´s Environmental Diagnosis), this process is specific to the Mill. 3. Environmental Impact Assessment (EIA) for the “La Inca” farm, made in 2011 (Document: The Inca Project´s Environmental Diagnosis). This EIA is carried out to La Inca farm because this production area is in the buffer zone of the Reserve Biotopo Manabique. Theses EIA are approved by the Guatemalan Environmental Authority and Agrocaribe got their respective environmental licenses. Activity report of the Implementation of Environmental Management and Monitoring Plan are regularly reported once per year for both estates and mill. These reports are reported to the Ministry of Environmental and natural resources of Guatemala. A series of monitoring plans and mitigation of impacts those are in line with national legal requirements and RSPO on the plantation and have been entered.

MA 5.2 High Conservation Value (HCV) Evaluation carried out on 2012 by consulting company. From characterization of ecosystems and species, the company identified wildlife and their status according to the IUCN, CITES and government regulation of Guatemala. Howler monkey /Mono aullador (alouata pigra), CITES I, endangered IUCN. Caracara (caracara cheriway), CITES II; Owl/ Lechuza (tylo alba), CITES II; Aurorita (glaucidium brasillianum), CITES II; and Mazacuata (boa constrictor), CITES II. HCV area is identified in the area called “La Florencia”. HCV #1: 1.2 Rare Threatened or Endangered species and 1.3 endemic species Areas on 45.02 hectares. Close to this particular area is not cultivated, neither other activities are done. This area is fully protected as there is not access for farm workers and there is absence of communities around this area that may affect them.





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Assessment based on national, regional and local data and satellital photos evidenced and confirm that there were no forest areas that have been converted since 2005. Actions were developed based on the HCV consultants’ recommendations and these were inspected during the document review, interviews with workers and observation on place. Regular review of the HCV monitoring is carried out by the Sustainability Department in site. Signage to create awareness of any illegal hunting, and logging tree, are placed around the HCV areas. Also educational campaigns to the workers and communities have been done. OBSERVATION: all actions realized to management HCV areas were evidenced, but results of these monitoring could be documented and also additional studies can be carried out to find other species in endanger as the HCV studies recommend. In addition, protected areas are identified within the area of influence of the company specifically in the area called “La Inca” belonging to Agrocaribe,: 1. Wildlife Refuge/ El Refugio de Vida Silvestre (RVS) is in the Punto de Manabique at a distance of 8.7 Km from la Inca area. 2 . Springs Reserve / La Reserva Protectora de Manantiales (RPM) is in the Cerro San Gil with an approximate distance of 7 Km from la Inca area. Nearest to this RVS was observed that there are La Media Luna and Quetzalito Populations, also livestock farms. The company are not affected these areas.

MA 5.3 The Solid and Hazardous Waste Management Plan has been developing. The identifying residues procedure is in place and followed, as result the following residues has been identified: offices, domestic house hold wastes, fields, workshop, agrochemical containers, storage areas, used oil, filter, clinical waste and so on. Also pollution sources are characterized and identified. Records of wastes and sub products generated from different areas. For instance, total of wastes generated from mill on 2013:

1. Rachuis, 13,094.5 MT, 2. Fibre, 2,407.7 MT, 3. Sludges, 3,312.9, MT 4. Ashes, 1,518.3 MT, 5. Stone, 64.7 MT

The mill and estates have procedures on how to handle wastes and their storage, these are in accordance to the Scheduled Wastes local regulations. Recycling plan is implemented. Shell and fibers are recycled in the mill. Domestic waste goes to landfill. EFB residues are being sent to the estates for mulching. Decanter solids and POME are also being applied in the field. At the moment wastes are disposed to the landfill at Puerto Barrios municipality. And the other side, solid waste disposal programme is including proper management for agrochemical containers. This is the main toxic residue produced on the state, however, It was evidenced that this residue is in small quantities. This waste has a processing before end disposal (triple washes, drilling empty containers and temporary storage). As Agrocaribe participate in a Program “clean up our fields” managed by AGREQUIMA company, MARN and MAGA, the final disposal is collected by the licensed collector AGREQUIMA. Training for sprayers and responsible on adequate manage of empty agrochemicals containers is given by Agrequima.

MA 5.4 The renewable energy sources in the mill are fiber and shell as biomass ( producing thermal energy and electricity energy) Bio Gas plant which uses methane gas captured from the effluent ponds to produce electricity energy. It is demonstrated that the mill is self-sufficient in its energy requirement with 100% of its operations run by electricity. Fossil fuel is not used. (0.07 MHW/MT FFB processed).





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On state: Sighted the monitoring of diesel oil used in a comparative for year 2013. (2.14 gallons/FFB).

MA 5.5 There is zero burn policy as in compliance for both RSPO P&C and RAS programs. Evidenced during the field visit no uses of fire for preparing the land. Sighted the operation procedure regarding the Handling the Emergency Situation.

MA 5.6 As part of result of the environmental Impact Assessments (EIA) made by the company, Environmental Monitoring plans were established. The company has implemented such plans which describe the activities identified pollutants and biotic factor that could be affected; this plan was approved by the national environmental authority to document and evaluate the traceability of gas emission, particulate matter and effluents generated by the states and milling process. Monitoring and evaluation emissions records were evidenced. A Mill Effluent Manual was established and an Industrial Wastewater Treatment System is implemented to avoid discharges surface and groundwater bodies.

Criterion by Audit

Summary

The company has conducted Social Impact Assessment effectively covering the socio economy; culture and health of surrounding people who may be affected by plantation activities by company also from negative or positive impact. The findings are acted upon by developing management and monitoring plans. Procedures for complains and grievances are in place. Housing and other facilities for workers are provided by the company and these are being upgraded via the continual improvement programme. The relevant policies are in place and are fully implemented across the board, displayed and communicated. The policies on minimum age workers, equal oppurtinities, sexual harrassment, and freedom to join workers’ union were stated clearly and document reviewed showed that these have been implemented.

MA 6.1 The social impact assessment was carried out on March 2012 by social third party organization. The positive and negative impacts were identified. The participation of stakeholders is adequate with 30 different communities. Social assessment found no significant impact to the environment. On other aspect, this has created more job opportunity.

There is a timetable with responsibilities for mitigation and monitoring, from January to December 2013, other timetable forecast 2014. They including participation of Human Resources Department, Social Responsibility Department, Plant Manager, etc.

No outgrowers supply FFB to the mill. POM is certified BASC where the company has to demonstrate that there is no link with criminal groups, money launderers or financiers of terrorism. Independent company is responsible for security on state and POM. Rules are clear on the requirements for work with Agrocaribe S.A.

MA 6.2 Procedures as following are sighted as Consultation and Communication and all operating units have updated their list of stakeholders. For external communication is clear for the community and company, the main channel of communication is through Human Resources manager and it team proactively visit the local communities and are in close touch with leaders. There is a plan for having meetings every 3 months. The last meeting was on October 2013. There is an iniciative of having “tours” within the camps, from people of the local communities to see in person the way of workers living, the facilities, etc. Communication channels include: periodical meetings, suggestions boxes, texting through cellular phones, bulleting boards, etc. There is a record available of the incoming requests and the response to them by the Company.

MA 6.3 Complaints and grievances were effectivley handled, as confirmed from the document review and feedback from the stakeholders meeting. There is a mutually agreed and documented system for dealing with complaints and grievances. There is a documented procedure called “Procedure for handling suggestions, complaints or Recognitions”, issued on January, 2013. There is a committee to manage





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the grievance received and is the responsible for give proper answer. Until today, there have been two committee meetings to resolve requesting from workers. At the state and mill complaint boxes are available for personal. Stakeholders send notifications to human resources Department.

MA 6.4 The Company had a meeting with indigenous and community to explaining and identify customary rights. Act No. 03-2023 and 04-2013, carried out on February 2013. As result of the meeting no customary rights were detected.

MA 6.5 The Recruitment Policies, PO-03, issued on May 31, 2012 is implemented. This policy states several subjects regarding hiring, according to local legislation. All the matters are related to Guatemalan Labor Code. Government agreement N. 359-2012, established the minimum wages are: Agricultural activities: Q71.40 daily. Non agricultural activities: Q71.40 daily. It was published at the “Diario de Centroamérica” (official newspaper). On December, 28, 2012 Through the internal work regulations, clauses relating to staff bonding are available. There are documented contracts signed by both parties detailing working and payment conditions. Payment records showed that the minimum wageis were paid. The company provides housing, electricity, water, medical facility, playground, community hall, ambulance, bus, etc. Not engage in forced labor practices were evidenced. A significant number of indigenous staff is hired, by interviews it was confirmed. There is a policy of publishing on a daily basis the amount of wages earned by any one of the workers at the bulletin board, posted in every camp. This is a practice established to provide information to the employees for any question or complaint.

MA 6.6 The working policy there is a paragraph regarding freedom of association. The internal work rules are published in posters, mostly on walls at dining rooms. In order to promote freedom of association, company has promoted the creation of one association and one cooperative. There is no other formal group, in a case for instance of labor inconformity. But there are documented cases in which a group of employees with a wage complaint. Company solved the matter by raising the wage. The complaint was delivered by a written note to the HR Manager, signed by 25 employees. Mill and estate workers are free to bargain collectively by forming groupings on their own to collectively bargain with the management of the mill or estates.

MA 6.7 The policy of minimum ages is clearly stated and the assessment audit confirmed that this is implemented. There are no children below ages of 18 working in the mill or estates and this was proven through document review and interviews.

MA 6.8 The policy of equal oppurtinities and non discrimination is clearly stated and the assessment audit confirmed that implementation took place through interviews and stakeholders meeting. There are several channels of communication such as the mail boxes, person to person to communicate to Managers in such a case. Training about policies, was given on February, 2013 It was evidenced same treatment to women, men and also between local workers and indigenous workers.

MA 6.9 The “Politics of violence against women and protect their rights” was worked on Sexual Harassment, Violence and Reproductive Rights has been displayed at all estates and mill. This policy has also been communicated to all staff and workers and this was evident through the training records. Also,





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workers that were interviewed are aware of this policy. The workers that were interviewed confirmed that there were no incidents of sexual harassment and violence in both the estates and mill. The policy includes the constitution of “a gender committee”, created to specifically address areas of concern to women. A specific grievance mechanism for workers to voice their grievances with regards harassment of a sexual or violent nature has been established.

MA 6.10 N.A. All of the FFB coming from estates owned by Company. No small holders or other local businesses are related.

MA 6.11 So far, Company has established three main categories or areas of influence to the development of communities: infrastructure, education, health. Contribution to local development is compiled in a sustainability balance formed by reports of each project done in every community. The file is called “Community Relations” and also another file called “Communicates”. For instance, a project for each area: INFRASTRUCTURE: “Agrocaribe inaugural seis mil metros de borda que beneficiarán a más de 250 familias en Puerto Barrios, Izabal” (6 km of material for protecting communities against river flood). Local newspaper, Prensa Libre, enterview with Mrs Natalia Dubon, community leader: investment of over US$120k for preventing river floods affecting local community. EDUCATION: “Agrocaribe y Extractora del Atlántico brindan apoyo a escuelas aledañas a las operaciones”. Donation of desks and blackboards to several schools of the communities: Tenedores, Sinaí, Buenos Aires; etc. HEALTH: “Agrocaribe construye rampas en el centro de salud de Champona INTA para facilitar el acceso a enfermos y discapacitados”. (Improvement of outpatient hospital for handicapted patients).

Principle 7: Responsible Development of New Plantings

Criterion by Audit

Summary

The company has planted since 2010 on-going planting till to-date. The planting after 2005 have not cleared any HCV or Primary Forest. However, the subsequent planting since 2010 have not followed the NPP requirement neither for on-going planting or prior to land clearing. A Major NC was raised. Evidences showed that the land was planted with bananas crops and livestock activities. The company clears the land without using fire.

MA 7.1 1. Environmental Impact Assessment (EIA) was developed and implemented by the plantation since 2003. Document: “Agrocaribe Project´s Environmental Diagnosis” for states. 2. Environmental Impact Assessment (EIA) for the “La Inca” farm, made in 2011 (Document: The Inca Project´s Environmental Diagnosis). This EIA is carried out to La Inca farm because this production area is in the buffer zone of the Reserve Biotopo Manabique. Theses EIA are approved by the Guatemalan Environmental Authority and Agrocaribe got their respective environmental licenses.

MA 7.2 It was observed the reference maps, land use and the physical-chemical soil fertility analysis. It was also confirmed that the engineering department of the company, makes supervision for design, identification and budget infrastructure (roads, canals, bridges)

MA 7.3 The company has planted since 2010 on-going planting till to-date. The planting after 2005 have not cleared any HCV or Primary Forest. However, the subsequent planting since 2010 have not followed the NPP requirement neither for on-going planting or prior to land clearing. Therefore, a Major NC is raised





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MA 7.4 Have maps, where the slopes of the production areas are observed, fragile and marginal soils, it was observed that have updated based on the areas through a set of maps. The ananlysis show has no major limitation to oil palm growth.

MA 7.5 The company keep a communication open with the community and local entities. 1. Environmental Impact Assessment (EIA) was developed and implemented by the plantation since 2003. Document: “Agrocaribe Project´s Environmental Diagnosis” for states. 2. Environmental Impact Assessment (EIA) for the “La Inca” farm, made in 2011 (Document: The Inca Project´s Environmental Diagnosis). This EIA is carried out to La Inca farm because this production area is in the buffer zone of the Reserve Biotopo Manabique. These assessments include Social and environmental impacts positives and negatives.

MA 7.6 No customary right land identified. Notarial declarations documented where it communities not declared customary rights. It was confirmed in the stakeholders meeting.

MA 7.7 Zero burning policy is in place and implemented.

Principle 8: Commitment to Continuous Improvement in Key Areas of Activity

Criterion by Audit

Summary

All the operating units are regularly monitoring and review their activities and develop and implement action plans that allow demonstrable continual 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. Both mill and estates has sufficient records and documents to justify the achievements.

MA 8.1 Agrocaribe is a company with a challenging corporate vision. Always evidenced it wish to be forward in the palm sector. All plans are focused to improve entire process. Indicators found: As for air pollution, regular maintenance of company own vehicles to reduce to emission of carbon, zero burning policy, banned on open burning among others. Recycling nutrients system using subproducts of mill. Organic matter applications in poor soils. Maintenance of cover crops in soil to minimize erosion and protect the soils Minimize environment impact with reduction of fossil fuel use per ton of FFB, Maintenance planting in riparian reserve areas to enhance environmental quality. Improvements to maximizing recycling and minimizing waste representative of all estates and POMs. Ex: The fiber and the shell are used in high efficiency boilers; oxidation ponds and drying, sludge waste produced along with fiber and shell are used for fertilization. The effort done by Agrocaribe for improve relationship with all it stakeholders, and open more spaces of participation is evident. Develop of communication media for reach out to stakeholders, even in keikchi language. The installations and capacity of workers quarters is evidenced in improvement continues. The project to produce electricity and provide it outside the company.





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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.

4.3.1 Non-Conformities Identified during this Audit

The following NC’s were raised for this audit.

NC number: P&C 2013-01

Client name: Extractora del Atlantico S.A. - Agrocaribe S.A.

Date raised: 29/11/2013

Major or Minor: Major

Raised by: Adriana Vargas Latorre

Aspect of standard: 7.3 New plantings since November 2005, have not replaced primary forest or any area required to maintain or

enhance one or more High Conservation Values.

Evidence of non-conformity: The company has planted since 2010 on-going planting till to-date. The planting after 2005 have not cleared any HCV or Primary Forest. However, the subsequent planting since 2010 have not followed the NPP requirement neither for on-going planting or prior to land clearing.

Evidence for settle: NPP was carried out. RSPO notification on the website ended on 26.05.2014. No comments received from any stakeholder.

Auditors Signature

Date 27/05/2014

NC number: PC 2013-02



Major or Minor: Minor

Raised by: Adriana Vargas Latorre

Aspect of standard: Partial Certification. 2.4.1 Did the company conduct an internal audit? If so, has a positive assurance statement been produced?

Evidence of non-conformity: Agrocaribe has conducted an internal audit on January and April 2013 for Agrofrancia including RSPO and Raintforest Alliance programs. Furthermore, insufficient records to demonstrate that the internal audit has took place for all requirements under RSPO P&C.

Assessors Signature

Date 29/11/2013





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NC number: P&C 2013-03



Major or Minor: Minor

Raised by: Adriana Vargas L.

Aspect of standard: 2.2.1 Documents showing legal ownership or lease, history of land tenure and the actual legal use of the land

Evidence of non-conformity: Conflicts of land tenure in the region are not evidenced. Communities have not referenced any land legal problem with Agrocaribe. However, the company can show land tittles for 10,041.84 hectares from the 10,142.55. So, the company has not documents of land tittles for 100.71 hectares.

Auditors Signature

Date 29/11/2013

4.3.3 Observations Raised During this Audit



Raised by: Manolo de La Cruz

Aspect of standard: 2.2.2 Evidence that legal boundaries are clearly demarcated and visibly maintained.

Growing areas have their boundaries defined by roads, live fences (trees). Some areas have barbed wires. Some areas need to improve the maintenance.

Auditors Signature

Date 29/11/2013



Raised by: Judith Ramirez

Aspect of standard: 5.2.2 Evidence that legal boundaries are clearly demarcated and visibly maintained.

All actions realized to management HCV areas were evidenced, but results of these monitoring could be documented and also additional studies can be carried out to find other species in endanger as the HCV studies recommend.

Auditors Signature

Date 29/11/2013





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Client name: Agrocaribe


Raised by: Luis Palacios

Aspect of standard: 6.5.3 Housing, water supplies, medical services through the EPS (Health care provider), education through public schools or SENA (National Apprenticeship Service), areas for recreation and social assistance through family compensation funds or the ICBF (Colombian Institute for Family Welfare), appropriate to the national standard, for workers living in plantations and palm oil mills.

There are 8 camping facilities, 3 among them are older and with a different architectural desing than the rest, such as DUBLIN area. A construction for the whole workers without separation walls between them. Those facilities need improvement, in comparisson to the newer camps.

Auditors Signature

Date 30/11/2013

4.4 Issues that were raised during the Stakeholder Consultation, if any

Stakeholders were either informed by the client or by Control Union via the RSPO website.

For Main Assessments, a 30 day Stakeholder consultation announcement is published on the RSPO website

prior to the audit. The same announcement is circulated by the client prior to the audit

For subsequent Annual Assessments, it is based on stakeholders reading the approved public summary

reports available on the RSPO website, the client’s procedures in receiving on-going feedback or if feedback

was sent directly to Control Union prior to an audit or thorough RSPO complaints procedures.

During each assessment, the audit team will review the company’s implemented procedures in receiving

feedback and will execute field visits and interviews. Not limited to the following questions, any feedback

received is reviewed and summarized in this summary report for either Part 2 – Partial Certification or Part 4 –

Assessment Findings above or noted below, if applicable:

1. Do you have any remarks on the RSPO standard?

2. What is your relation with the applicant?

3. Are there any plantation or mill management practices that affect you?

4. Do you consider any management is in conflict with the RSPO principles and criteria?

5. Do you have any suggestions for management?

6. Are you aware of any HCV in the plantations or in adjacent land?

7. Are you aware of any endangered or rare species?

8. Are there any adverse (or positive) effects on local communities?

9. Additional comments?

11. Do you have any comments about the assessment team and would you like to meet with them?

12. Do you have any comments for the client’s management of any other plantations?

Subject raised Company response and proposed action to be taken

Audit team findings

Nil Nil Nil





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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 2011

5.1 POM Included In The Scope Of The Audit

Name Palm Oil Mill

Mill Capacity

Location Supply Chain Model

(POM) MT/Hour Address (IP or SG or MB)

Extractora del Atlantico S.A.

60 MT/hour

Km. 276 Carretera al Atlantico, Camino Aldea Champona,

Guatemala IP

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 CPO (MT) PK (MT) Specified 12 month period

CU Code

POM 1 52,232 10,815 Actual volumes between 01/11/2013 to 31/10/2013. See also 1.6 above. Main Audit

5.3 Summary Report Including A Brief Description Of The Scope Of Certification

Extractora del Caribe S.A. Palm Oil Mill entity legally constituted and it supply bases Agrocaribe´s oil palm mature plantations extending to some 7,989.49 hectares. These units are included in the scope of certification. The supply base is not RSPO certified already, this is their first inspection. A full RSPO SCCS certification audit was used during this Main assessment and the findings support the certification based on IP supply chain model. OPP1: FFB from owned plantation is delivered directly to the POM. The yields of FFB of owns plantations producing in average 29.2 tonnes per ha and with an OER of 23. 05 %. POM1. The mill receives and processes FFB from own plantations. POM capacity is 60MT/h and produces CPO, PK and CPKO Owned FFB is identified at the weighbridge and is stored on the loading ramp. At the start of each day, FFB is processed by batch and the CSPO and CSPKO is stored in separate and identifiable tanks for these products. They count with 4 tanks for CPO and 2 tanks CPKO and 1 for CPO/CPKO when is needed. A fully computerized record system is used to record all inputs and outputs and printouts can be produced at any moment in time for any given period. Deliveries of CSPO and CSPKO are from the POM to the customers, some of them are local companies and other outside. (Cargill de Mexico; Cargill Americas; Fastelan; Unilever Honduras; Unilever Caribe; AAK and Colgate) For clients outside Guatemala, the CSPO and CSPKO is sold in the Free Trade Zone-ZOLIC (Zona Libre de Comercio-ZOLIC), where Extractora del Atlantico S.A. has in rent and with exclusive use a series of tanks . Also terrestrial transportation is used for countries close to Guatemala as Mexico and Honduras.





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5.4 Monthly Records of Certified FFB, CPO and PK Since the Last Audit

If this is the 1st

Main Assessment, the figures used are from the last 12 months. If this is an Annual Surveillance Assessment, the figures used are since the last audit.

No MONTH-YEAR Certified Supply Bases (MT) Certified CPO (MT) Certified PK (MT)

1 Nov-2012 23,746 4,887 860

2 Dic-2012 11,690 2,257 737

3 Ene-2013 13,974 2,925 557

4 Feb-2013 7,973 1,580 331

5 Mar-2013 7,994 1,628 490

6 Abr-2013 12,403 2,483 610

7 May-2013 20,843 4,608 867

8 Jun-2013 19,274 4,256 824

9 Jul-2013 32,781 7,107 1,134

10 Ago-2013 31,212 6,814 1,492

11 Sep-2013 29,278 6,350 1,475

12 Oct-2013 32,910 7,336 1,438

TOTAL 244,077 52,232 10,815

5.5 Records of Certified CPO & PK Sold under GreenPlam to Buyers since the Last Audit, if Any

If this is the 1st

Main Assessment, the figures used are from the last 12 months. If this is an Annual Surveillance Assessment, the figures used are since the last audit. The transactions were sighted form the clients registered GreenPlam Account.

No Buyers Name GreenPalm Trading No Certified CPO

(MT) Sold Certified PK (MT) Sold

1 N.A. Main Assesment

5.6 Records of Certified CPO & PK Sold under UTZ eTrace to Buyers since the Last Audit, if Any

If this is the 1st

Main Assessment, the figures used are from the last 12 months. If this is an Annual Surveillance Assessment, the figures used are since the last audit. The transactions were sighted form the clients registered UTZ eTrace Account.

No Buyers Name UTZ eTrace Trading No Certified CPO

(MT) Sold Certified PK (MT) Sold

1 N.A. Main Assesment

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.

The following NC’s were raised for this audit.





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NC Number: SCCS-2013-01

Date: 28th

November 2013

Reference to standard: 7.1

Standard requirement: The facility shall have a defined training plan, which is subject to on-going review and supported by training records.

Evidence of non-compliance: Although the company has training plan to cover various issues, it has not included aspects related to the management of FFB and CSPO under SCCS RSPO.

Closed NC


Date: 28th

November 2013


Standard requirement: The facility shall provide the training for all staff as required to implement the requirements of the Supply Chain Certification Systems.

Evidence of non-compliance: There is not training for all staff about requirements of the SCCS.

Closed NC


Date: 28th

November 2013


Standard requirement: The facility shall keep records of the training provided to staff in relation to implementation of these requirements..

Evidence of non-compliance: There are not records of training for all staff about requirements of the SCCS.

Closed NC

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.

Extractora del Atlantico S.A. is certified under BASC; Kosher; SQA Unilever; and Social & Bussines Responsability of UNILEVER standards. These systems complement RSPO SCCS. Only FFB from it owns plantations are received in the mill. They are applying to Preserved Identity supply chain model. The Infrastructure and Operative system demonstrated capability to manage this supply chain model.

5.9 Final Certification decision by Control Union for the RSPO SCCS Audit of the POM

Recommendations made: Yes

Summary of non-compliances:

As per above NC register and all has been addressed adequately and closed.

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.





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PART 6: CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

6.1 Date of next ASA

The provisional date for the next ASA is: April 2014

6.2 Date for Closure of Non-Conformities

See sections above for details of NC’s, if any

All major NCs to be closed by: 31/05/2014

All minor NCs to be closed by: Before next surveillance audit

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: Pedro Cerrate

Position: Certifications Manager

Date: 27/05/2014 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: Adriana Vargas

Position: Lead Auditor


6.5 Signing by the Certifier

I the undersigned, being the Certifier, confirm that the information and conclusions included in this report have been prepared in good faith and that the certification decision has been based upon this information.

Acknowledged by:

Name:

Position: Certifier






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PART 7: APPENDICIES

Appendix 1: Location Map for this Certification Unit

From 1.9, the location map(s)