RSPO Supply Chain Certifications Supply Chain Model Upgrading Assessment Report Report Number CU826788

RSPO SUPPLY CHAIN CERTIFICATIONS PUBLIC SUMMARY REPORT ASA1 ASSESSMENT MALAYSIA

FELDA-JENGKA 3 2014 Report prepared by: Simon Selvaraj (Lead Assessor) Certification decision by: Hari Naveen Christopher (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.

RSPO Membership Number RSPO Approval Date Affiliate Membership

8-0025-06-000-00 12/01/2006 http://www.rspo.org/en/member/339

RSPOSCCS-SUM-REPORT.F01 OCT2013 Control Union (Malaysia) Sdn Bhd (163226-D) 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sungai Bertih, Teluk Gadong, 41100 Klang, Selangor, Malaysia Tel: +603 3377 1600 / 1700, Fax: +603 3377 1800, E-Mail: [email protected]

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Table of Contents

PART 1: CERTIFIED COMPANY DETAILS ......................................................................................4 1.1

Company Contact Details ..........................................................................................4

1.2

Facilities included in the Scope of the Audit .............................................................4

1.3

Contact Details of Respective Facilities ....................................................................4

PART 2: SUMMARY OF THE REPORT AND SCOPE OF THE AUDIT ...............................................5 2.1

RSPO SCCS Summary Report .....................................................................................5

2.2

Description of the Audit Scope ..................................................................................5

2.3

Multi Sites Only ..........................................................................................................5

2.4

Description of the Organizational Management Systems........................................5

PART 3: RSPO CERTIFIED PRODUCTS ..........................................................................................6 3.1

RSPO Certified Volumes.............................................. Error! Bookmark not defined.

3.2

RSPO eTRACE – See Annex 1 .....................................................................................6

PART 4: BACKGROUND TO THE REPORT ....................................................................................7 4.1

Certification Body ......................................................................................................7

4.2

The Lead Auditor ........................................................................................................7

4.3

The Certification Decision Management Team ........................................................7

4.4

Audit Agenda .............................................................................................................7

4.5

RSPO Supply Chain Requirements.............................................................................8

PART 5: CLOSING MEETING ........................................................................................................8 5.1

Certified Status at this Time ......................................................................................8

5.2

Actions that a need to be completed prior before certification can proceed .........8

5.3

Audit findings .............................................................................................................9

5.4

Details of any further information supplied by the client at this stage ...................9

5.5

Confidentiality............................................................................................................9

5.6

Non-Compliance.........................................................................................................9

PART 6: CONCLUSIONS OF THE AUDIT & CERTIFICATE DETAILS ............................................. 10 6.1

Final certification decision of Control Union ......................................................... 10

6.2

Certificate Details and Scope .................................................................................. 10

PART 7: FORMAL SIGN OFF OF AUDIT FINDINGS .................................................................... 12 7.1

Signing by the Client ............................................................................................... 12

7.2

Signing by the Lead Auditor.................................................................................... 12

7.3

Signing by the Certifier ........................................................................................... 12

RSPOSCCS-SUM-REPORT.F01 OCT2013 Control Union (Malaysia) Sdn Bhd (163226-D) 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sungai Bertih, Teluk Gadong, 41100 Klang, Selangor, Malaysia Tel: +603 3377 1600 / 1700, Fax: +603 3377 1800, E-Mail: [email protected]

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ANNEX 1: RSPO eTrace Registraiton Information ................................................................... 13 A1: Record of raw materials purchased / received ........................................................... 13 A2: Record of raw materials sold ....................................................................................... 13

RSPOSCCS-SUM-REPORT.F01 OCT2013 Control Union (Malaysia) Sdn Bhd (163226-D) 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sungai Bertih, Teluk Gadong, 41100 Klang, Selangor, Malaysia Tel: +603 3377 1600 / 1700, Fax: +603 3377 1800, E-Mail: [email protected]

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PART 1: CERTIFIED COMPANY DETAILS 1.1 Company Name:

Company Contact Details Felda Global Venture Berhad

Principle Contact Person: Business Address:

7th Floor, Balai Felda, Jalan Gurney 1, 54000 Kuala Lumpur, Malaysia Mr. Shafiq

Office Contact Number: Fax Contact Number:

+603-2698 7772 -

e-mail: Web site: RSPO Membership Number:

[email protected] www.fgv.com.my 1-0013-04-000-00 Date of Approval:

1.2 CU Code POM 1

Facilities included in the Scope of the Audit Name of facility Location address Jengka 3 Palm Oil Mill

CU Code REF1, REF2, etc. PRU1, PRU2, etc. FPU1, FPU2, etc. OTU1, OTU2, etc. TRD1, TRD2, etc. ICS

Felda Palm Industries Sdn. Bhd. Kilang Sawit Jengka 3, 26400 Bandar Jengka. Pahang. Malaysia.

Operational Units Refineries Processing units Final production units Outsourcing units Trading units Internal Control System

17 Oct 2004

Supply Chain Model SG Supply Chain Model IP (Identity Preserved) SG (Segregation) MB (Mass Balance)

1.3 Contact Details of Respective Facilities List out the contact details of each management representative responsible for overseeing the certification process for each facility if different to that shown in table 1 above CU Code Contact name Office phone e-mail Same as above

RSPOSCCS-SUM-REPORT.F01 OCT2013 Control Union (Malaysia) Sdn Bhd (163226-D) 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sungai Bertih, Teluk Gadong, 41100 Klang, Selangor, Malaysia Tel: +603 3377 1600 / 1700, Fax: +603 3377 1800, E-Mail: [email protected]

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PART 2: SUMMARY OF THE REPORT AND SCOPE OF THE AUDIT 2.1 RSPO SCCS Summary Report Summary report including a brief description of the scope of certification A full RSPO SCCS certification audit was used during this upgrading of supply chain model assessment and the findings support the certification based on supply chain model listed above. The SOPs are well developed which can be easily adopted when handling SG model.

2.2 Description of the Audit Scope Description of the scope of the audit including the supply chain model(s) used CU Code Scope and Supply Chain Model POM 1 Processing fresh fruits bunches of oil palm and processing to crude palm oil and palm kernel through SG model. 2.3 Multi Sites Only Justification and explanation of the sampling formulae used, applicable to Multi Sites Only N/A 2.4 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 In term of the system implementation, staff and stakeholders are generally well understood of the RSPO SCCS requirements and the implementation seen objectively achieved. The management has allocated sufficient resources to manage the system and sighted RSPO SCCS competence personals.

RSPOSCCS-SUM-REPORT.F01 OCT2013 Control Union (Malaysia) Sdn Bhd (163226-D) 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sungai Bertih, Teluk Gadong, 41100 Klang, Selangor, Malaysia Tel: +603 3377 1600 / 1700, Fax: +603 3377 1800, E-Mail: [email protected]

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PART 3: RSPO CERTIFIED PRODUCTS 3.1 RSPO ACTUAL CERTIFIED VOLUMES 2013/2014

Product CU Code

CPO (MT)

PKO (MT)

POM 1

29,068.62

7,997.27

Specified 12 month period Actual volumes between 01/09/2013 to 26/01/2014.

3.2 Monthly Records of Certified and Uncertified FFB Received Since the Last Audit No MONTH-YEAR Certified Supply Bases (MT) Uncertified Supply Bases (MT), if any 1 Sept 2013 32,127.72 899.43 2 Oct 2013 32,223.70 440.14 3 Nov 2013 29,230.04 449.91 4 Dec 2013 25,343.89 352.14 5 1- 26 Jan 2013 20,617.73 0 TOTAL 139,543.08 2,141.62

Total (MT) 33,027.15 32,663.84 29,679.95 25,696.03 20,617.73

141,684.70

3.3 Monthly Records of Certified CPO and PK Produced Since the Last Audit No MONTH-YEAR Certified CPO (MT) Certified PK (MT) 1 Sept 2013 6729.76 1,828.30 2 Oct 2013 6,732.80 1,834.88 3 Nov 2013 6,165.77 1,631.62 4 Dec 2013 5,263.80 1,472.86 5 1- 26 Jan 2013 4,176.49 1,229.61 TOTAL 29,068.62 7,997.27

3.4 RSPO FORECASTED CERTIFIED VOLUMES 2014

Product CU Code

CPO (MT)

PKO (MT)

POM 1

26,687

6,473

Specified 12 month period Forecasted volumes between 30/01/2014 to 13/12/2014.

From ASA1 report,  CPO forecast, 55,755 – 29,068 = 26,687 MT  PK forecase, 14,470 – 7,997 = 6,473 MT

3.1 RSPO eTRACE – See Annex 1 Only applicable to facilities after the Palm Oil Mill, such as refineries, manufacturers, etc that have PURCHASED and SOLD RSPO certified CPO and PKO and for the 12 month period

RSPOSCCS-SUM-REPORT.F01 OCT2013 Control Union (Malaysia) Sdn Bhd (163226-D) 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sungai Bertih, Teluk Gadong, 41100 Klang, Selangor, Malaysia Tel: +603 3377 1600 / 1700, Fax: +603 3377 1800, E-Mail: [email protected]

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PART 4: BACKGROUND TO THE REPORT 4.1 Certification Body Control Union Certifications is a member of the Control Union World Group - an international inspection and certification body. CU 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. CU is accredited by the Dutch Council of Accreditation (RVA) on the European quality standard EN 45011 for the inspection and certification of CU Organic program (according to the EU regulation 2092/91) and EUREPGAP program. When requested a copy of the accreditation certificate can be obtained from CU. 4.2 Name Simon Selvaraj

The Lead Auditor Qualifications Lead Auditor

4.3 The Certification Decision Management Team Name Qualifications Hari Naveen Christopher Certifier 4.4 Date 27 Jan 2014

Audit Agenda Location Jengka 3 Palm Oil Mill

Main activities 10.00am - Opening meeting. Introduction by team leader. Introduction of team members and assessment agenda.

RSPOSCCS-SUM-REPORT.F01 OCT2013 Control Union (Malaysia) Sdn Bhd (163226-D) 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sungai Bertih, Teluk Gadong, 41100 Klang, Selangor, Malaysia Tel: +603 3377 1600 / 1700, Fax: +603 3377 1800, E-Mail: [email protected]

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10.30am - Review of onsite operations. Document review. 15.00pm - Closing meeting. Chaired by the assessment team leader. The purpose of the closing meeting is to allow the audit team to present their findings to the auditee, to agree dates for the completion of any corrective action required, and to establish any subsequent follow up action. The meeting is chaired by the audit team leader and wherever possible involve the same people who were present at the opening meeting. At the closing meeting a representative of Top Management was available. The meeting agenda is given in the associated closing meeting document. Final summary by team leader. 4.5 RSPO Supply Chain Requirements The facility or facilities 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

PART 5: CLOSING MEETING The purpose of the closing meeting is to allow the audit team to present their findings to the client, to agree dates for the completion of any corrective action required, and to establish any subsequent follow up action. The meeting is chaired by the audit team leader and wherever possible involve the same people who were present at the opening meeting. Company name: Felda – Jengka 3 Date of closing meeting: 27 Jan 2014 Names and of attendees Name: Affiliation: Mr. Ismail Mr. Rizal

Mill Manager PSQM Department

5.1 Certified Status at this Time It is very important for the client to understand that until they receive written confirmation of their RSPO Supply Chain certification registration from the CUC certifier (see 6.2c below) and its expiry date that they are not certified and cannot make any claims concerning certification. 5.2

Actions that a need to be completed prior before certification can

proceed a) If any non-compliance was noted, then a certification decision is not possible until the client has taken steps to close out the non-compliances noted in the certification checklist. See also 6 below. RSPOSCCS-SUM-REPORT.F01 OCT2013 Control Union (Malaysia) Sdn Bhd (163226-D) 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sungai Bertih, Teluk Gadong, 41100 Klang, Selangor, Malaysia Tel: +603 3377 1600 / 1700, Fax: +603 3377 1800, E-Mail: [email protected]

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b) If full compliance was noted during the audit, the next step is for the checklist and public summary plus any associated documentation, to be sent to the CUC RSPO SCCS Certifier, by the lead auditor. The certifier will review the documents and may refer back to either the lead auditor or to the client for further information or clarification. c) Once the certifier is satisfied, a positive certification will be made and a certificate is awarded and sent to the client. The RSPO is also notified within 14 days of the issuing of the certificate. d) If any non-compliance was noted, then a certification decision is not possible until the client has taken steps to close out the non-compliances noted in the certification checklist. See also 6 below. e) If full compliance was noted during the audit, the next step is for the checklist and public summary plus any associated documentation, to be sent to the CUC RSPO SCCS Certifier, by the lead auditor. The certifier will review the documents and may refer back to either the lead auditor or to the client for further information or clarification. f) Once the certifier is satisfied, a positive certification will be made and a certificate is awarded and sent to the client. The RSPO is also notified within 14 days of the issuing of the certificate. 5.3 Audit findings The findings of the RSPO checklist and the certification report were presented to the client. 5.4 Details of any further information supplied by the client at this stage No further information was given. 5.5 Confidentiality CUC auditors will not discuss or reveal any of the confidential information seen during the audit to any third party. Any public summary of the main assessment will be approved by the client prior to publication. 5.6 Non-Compliance The client is made aware that:  All non-compliance observed during an audit shall be classified as ‘major’ since all requirements for Supply Chain certification have to be met before granting certification. 

Applicable to main assessment audits, all non-compliances shall be addressed satisfactorily by the client before certification may be granted. If non-compliances are not addressed within three (3) months of the audit, a full re-audit shall be required.



CUC shall assess the effectiveness of the corrective and/or preventive actions taken before closing out the non- compliance.



Non-compliances that are raised after the main certification are serious (i.e. must be considered as a major) and the integrity of the RSPO Supply Chain Certification is at risk.



For subsequent annual assessment audits, a maximum of one month is to be given to the certified client to satisfactorily address the non-compliance. Should the non-compliance not be addressed within the one month maximum timeframe, a suspension or withdrawal of the certificate and a full re-audit may be necessary.

RSPOSCCS-SUM-REPORT.F01 OCT2013 Control Union (Malaysia) Sdn Bhd (163226-D) 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sungai Bertih, Teluk Gadong, 41100 Klang, Selangor, Malaysia Tel: +603 3377 1600 / 1700, Fax: +603 3377 1800, E-Mail: [email protected]

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

Where objective evidence indicates that there has been a demonstrable breakdown in the supply chain caused by the certified client’s actions or inactions, and that oil palm products have been or are about to be shipped which are falsely identified as RSPO certified product then immediate action will be taken by CUC, and the RSPO Supply Chain certification should be suspended until such time that it has been addressed.



If certification is suspended or removed, for example on the basis of lack of effective corrective actions, the client shall inform their supply chain customers immediately. If certification is granted subsequently then this can be communicated to the customer group.

PART 6: CONCLUSIONS OF THE AUDIT & CERTIFICATE DETAILS 6.1 Final certification decision of Control Union Recommendations made Yes Summary of nonNone. compliances: Certification status of client:

All facilities included in the scope of this audit demonstrated full compliance with the RSPO SCCS. With effect from the certification date given below, this company and all facilities mentioned in the scope of this report are considered to be certified in accordance with the RSPO SCCS.

6.2 Certificate Details and Scope Name of Client: Felda Global Venture Berhad – Jengka 3 Client number: CU-826788-RSPO C826788CU-RSPO.01.2013 Certificate number: 13 December 2012 Start date of certificate: 12 December 2017 End date of certificate: 13 December 2012 Date of first certification: Scope Type of certification:

Processing fresh fruits bunches of oil palm and processing to crude palm oil and palm kernel through SG model. Single site: Yes Multi Site: Yes

RSPOSCCS-SUM-REPORT.F01 OCT2013 Control Union (Malaysia) Sdn Bhd (163226-D) 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sungai Bertih, Teluk Gadong, 41100 Klang, Selangor, Malaysia Tel: +603 3377 1600 / 1700, Fax: +603 3377 1800, E-Mail: [email protected]

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Duration of certificate:

5 Years from date of certification

RSPOSCCS-SUM-REPORT.F01 OCT2013 Control Union (Malaysia) Sdn Bhd (163226-D) 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sungai Bertih, Teluk Gadong, 41100 Klang, Selangor, Malaysia Tel: +603 3377 1600 / 1700, Fax: +603 3377 1800, E-Mail: [email protected]

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PART 7: FORMAL SIGN OFF OF AUDIT FINDINGS 7.1 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 document (RSPO SCCS Report and Checklist). I also confirm:  Acceptance of liability in execution of the instructions given in the document and at the closing meeting.  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 the formal record of the closing meeting is accurate and that all agenda items were covered by the lead auditor.  I understand the implications of non-compliance as laid out above. Acknowledged by: Name: Norazam Abdul Hameed Position: General Man ager PSQM

Date:

03/02/2014

Signature

7.2 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: Simon Selvaraj Position: Lead Auditor Date: 10/02/2014 Signature 7.3 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: Hari Naveen Christopher Name: Certifier Position: 14/02/2014 Date: Signature

RSPOSCCS-SUM-REPORT.F01 OCT2013 Control Union (Malaysia) Sdn Bhd (163226-D) 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sungai Bertih, Teluk Gadong, 41100 Klang, Selangor, Malaysia Tel: +603 3377 1600 / 1700, Fax: +603 3377 1800, E-Mail: [email protected]

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ANNEX 1: RSPO eTrace Registraiton Information A1: Record of raw materials purchased / received Only applicable to facilities after the Palm Oil Mill, such as refineries, manufacturers, etc that have PURCHASED RSPO certified CPO and PKO and for the 12 month period Supplier RSPO SCC cert no RSPO eTrace no: Product Volume Own CU-RSPO-826788. N/A FFB *139,543.08 Supply Base. *Volume from Sept 2013 – 26th Jan 2014 inclusive of uncertified supply base under MB model. A2: Record of raw materials sold Only applicable to facilities after the Palm Oil Mill, such as refineries, manufacturers, etc that have SOLD RSPO certified CPO and PKO and for the 12 month period Buyer RSPO SCC cert no RSPO eTrace no: Product Volume CU-RSPO SCCS-816902 Cargill RSPO_PO1000000177 CPO 771.64 CU-RSPO SCCS-818535 KCP -NA- (GreenPalm) PK 7,722.70 Semambu

RSPOSCCS-SUM-REPORT.F01 OCT2013 Control Union (Malaysia) Sdn Bhd (163226-D) 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sungai Bertih, Teluk Gadong, 41100 Klang, Selangor, Malaysia Tel: +603 3377 1600 / 1700, Fax: +603 3377 1800, E-Mail: [email protected]

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