Roundtable on Sustainable Palm Oil

Transcription

1 Roundtable on Sustainable Palm Oil Supply Chain Certification Report Report no.: SCCS Assessment against RSPO Supply Chain Certification Systems, November 2014 Name of client : Ghana Oil Palm Development Company Ltd GOPDC Refinery Head Office & location of object : Refinery : Kwae near Kade, Kwaebibirem District, Eastern Region, Republic of Ghana Tema Tank Farm : Plot MS3, Main Harbour Road, Tema, Republic of Ghana Date of assessment : March 14-15, 2016 Report prepared by: Hendra Fachrurozy (RSPO SCCS Lead Auditor) Certification decision by: I Nyoman Susila (Head of Certification Body PT TUV Rheinland Indonesia) Certification Body: PT TUV Rheinland Indonesia Menara Karya 10 th Floor, Jl. H.R Rasuna Said Block X-5 Kav.1-2, Jakarta Indonesia, Tel: Fax:

2 TABLE OF CONTENTS 1.0 SCOPE OF SUPPLY CHAIN CERTIFICATION ASSESSMENT Executive Summary and Scope of Audit Certification Details Organisational Information / Contact Person Actual received and sold volumes Summary of Previous Assessment ASSESSMENT PROCESS Certification Body Qualifications of Lead Assessor and Assessment Team Assessment Methodology & Agenda ASSESSMENT FINDINGS Description of Supply Chain Management System Status of Previously Identified Non-conformities Identified Non-conformances against RSPO SCCS Requirements, Corrective Actions Taken and Auditors Conclusions Conclusion and Approval for RSPO Supply Chain Certification CERTIFIED ORGANISATION S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY Date of Next Surveillance Visit Acknowledgements of Internal Responsibility and Formal Sign-Off by Client APPENDICES Appendix 1: Details of Supply Chain Certification Certificate Appendix 2: List of Abbreviations Appendix 3 : Observations and Opportunities for Improvement Appendix 4 : List of supplier and buyer Appendix 5 : List of Certified Customer... 21

3 Page 3 of SCOPE OF SUPPLY CHAIN CERTIFICATION ASSESSMENT 1.1 Executive Summary and Scope of Audit Ghana Oil Palm Development Company Ltd (GOPDC Ltd) Refinery is foreign investment company under SIAT group, the refinery established to process of palm oil and their derivatives product. GOPDC refinery produce Palm Kernel Oil (PKO), pellet, RBD (Refine Bleaching Deodorant) Palm Oil, PFAD (Palm Fatty Acid Distillate), Olein, and Stearin where include of cooking oil under King brand. The operations of GOPDC Refinery (include of Tema Tank Farm) were assessed against the RSPO Supply Chain Certification Systems (SCCS) document (November 2014). The scope of the Supply Chain Certification System assessment covers purchasing and processing of RSPO Certified Sustainable Crude Palm Oil (CPO), Palm Kernel (PK) and Crude Palm Kernel Oil (PKO), sales of Crude Palm Kernel Oil (PKO), pellet, RBD Palm Oil, PFAD, RBD Palm Olein and RBD Palm Stearin and storage of all products using Mass Balance system. This is not a multi-site certification. Table 1. The volume of palm oil product was produced by GOPDC Refinery in year 2015 and projection of product sold for year 2016 (include by Tema Tank Farm). Product Type Production for year 2015 Projection of product sold for year 2016 Production for year 2015 as certified product Projection of certified product sold for year 2016 Crude Palm Kernel Oil (PKO) 2, , , Pellet 2, , , RBD Palm Oil 21, PFAD , RBD Palm Olein 15, , , RBD Palm Stearin 6, , , The main assessment was carried out on March 14-15, 2016 and a total of 1 (one) non-conformities were found during assessment. 1.2 Certification Details The details of RSPO Supply Chain certification of GOPDC Refinery are as per the table below Table 2. RSPO Supply Chain Certification details of GOPDC Refinery RSPO Membership no.: on behalf SIAT SA RSPO Supply Chain Certificate no.: Date of RSPO Supply Chain certificate & validity: until Refer to Appendix 1 for further details of the RSPO Supply Chain certificate. 1.3 Organizational Information / Contact Person Contacts details of the company are as follows:

4 Page 4 of 21 Company Name: Address: Ghana Oil Palm Development Company Limited Head Office : Kwae near Kade, Kwaebibirem District, Eastern Region, Ghana Refinery : Kwae near Kade, Kwaebibirem District, Eastern Region, Ghana Tema Tank Farm : Plot MS3, Main Harbour Road, Tema, Ghana Contact Person: Mr Gopi Kumar & Mr Florent Robert Telephone / Fax: +233 (0) / +233 (0) florent.robert@siat-group.com 1.4 Actual received and sold volumes. Table 3: Records of Certified Material Received/ Purchased year 2015 Supplier RSPO Certificate Number Product UTZ Number Volume (MT) Status / Model SC GOPDC POM* CPO PO , MB GOPDC POM* PK PO , MB Total 25, Note: *). Transaction product not sales but transfer Table 4: Records of Certified Palm Oil Product Sold year 2015 Buyer RSPO Certificate Number Product UTZ Number Volume (MT) Note: - Total - Status / Model SC 1.5 Summary of Previous Assessment This is main assessment so that there are not information s finding related to the fulfillment of the RSPO SCCS requirement November 2014.

5 Page 5 of ASSESSMENT PROCESS 2.1 Certification Body PT TUV Rheinland Indonesia is member of Group TÜV Rheinland Group, a global leader in independent testing and assessment services. The TÜV Rheinland Group was established in 1872 with offices located in over 490 locations in 62 countries on all five continents. PT TUV Rheinland Indonesia offers certification for a wide range of management systems according to established international standards including ISO 9001, ISO 14001, OHSAS 18001, SA 8000, RSPO (RSPO-ACC-013 dated on June 06, 2014), ISPO (LS-P&K-005-ISPO dated on May 10, 2012), SFM (mandatory and voluntary), as well as CDM Validations and Verifications. PT TUV Rheinland Indonesia s office is located in Jakarta, Indonesia. 2.2 Qualifications of Lead Assessor and Assessment Team Name Position Qualifications / Experience Hendra Fachrurozy Auditor Education: Bachelors Degree in Forestry - Bogor Agriculture Institute. Indonesia, (1995 to 2000). Trainings attended: ISO 9001:2008 lead auditor course - Neville Clark (2011); ISO 14001:2004 lead auditor course TUV Rheinland Indonesia (2011); SMK3 auditor course Department of Manpower and Transmigration of The Republic of Indonesia (2009); Sustainable Forest Management (SFM) - Forest Stewardship Council (FSC) system training; Chain of Custody training for FSC System; Sustainable Forest Management (SFM) Forestry Education and Training Centre (2010); Timber Legality of Verification Forestry Education and Training Centre (2010); RSPO Lead Auditor Course Pro Forest & Wild Asia (2011); SCCS RSPO by David Ogg Consulting (September 2012). Working experience: Experienced as Junior Consultant at PT Surveyor Indonesia (2002 s/d 2010), assessor for SFM mandatory (PHPL & PHTL), assessor for industry performance assessment (IPHHK)-mandatory, auditor for Timber Legality of Verification and CoC, auditor for SMK3, auditor for QMS and EMS and auditor for ISPO, RSPO & SCCS at TUV Rheinland Indonesia. 2.3 Assessment Methodology & Agenda The supply chain certification main assessment was conducted on March 14-15, 2016 as per audit plan below. The assessment was carried out in accordance with TUV Rheinland Indonesia s RSPO audit procedure as well as the RSPO Supply Chain Certification Systems document. An on-site assessment was conducted and the assessment team carried out field and document assessments of compliance to RSPO Supply Chain Certification System requirements. The company proposed the correction and corrective action for all identified non conformities raised to the certification body 15 days after the closing meeting. Verification of closure of non-conformances was conducted through document checked 4 weeks after the closing meeting of the main assessment. The main assessment agenda is as explained below:

6 Page 6 of 21 Date Location/ Main sites Main activities March 14, 2016 GOPDC Refinery Opening Meeting Company Profile and explain of audit plan; Document verification relate of documentation system, purchasing and good in, outsourcing activities, sales and good out, registration of transaction, training, record keeping, claims, complaints, management review, processing, mass balance system, conversion ratio and yield scheme. Lunch and break Refinery tour : - Dispatch product - Product processing - Sales document - Weighbridge - Receipt material March 15, 2016 Tema tank farm Travelling from GOPDC refinery to Tema tank farm Verification document Interview with Tema tank supervisor Visit field to storage tank Interview with diriver truck Closing meeting

7 Page 7 of ASSESSMENT FINDINGS 3.1 Description of Supply Chain Management System GOPDC refinery is a company under SIAT Group, located in Eastern Region Republic of Ghana which has main activities i.e., refinery palm oil and palm kernel. GOPDC produce RBD oil, PFAD, Olein, Stearin, PKO and PKC (pellet). GOPDC refinery material uses CPO and Palm Kernel (PK) which are supplied by palm oil mill under GOPDC too (transfer by pipes and integration of industry between mill and refinery) and purchases from other suppliers. Main assessment it was verified that the refinery has been produced refinery product as explained in section 1.1 above to supply for several buyers which claimed as non-certified as because company has been have own RSPO SCC certificate. All production process was conducted internally; company has outsourcing process for final product transport to buyers. The operations of GOPDC refinery were assessed against Module C (Mass Balance) of the RSPO Supply Chain model. The following is a description of the company s supply chain management system according to the RSPO SCCS requirements, including status of compliance of the company and their outsourced third parties to RSPO SCCS requirements: Section 1: 5. General Chain of Custody System Requirements for the Supply Chain 5.1 Applicability of the General Chain of Custody System Requirements for the supply chain Based on verification of document and field visit that the company has got legal ownership and physically handles oil palm product at location under their control include of Tema Tank Farm and transport activities from refinery to buyer and Tema to buyer. The scope of certification was not included processing aids. The company not selling RSPO certified product year 2015 and 2016 (till February) so that it has not been identified the status of buyers as trader or distributor or real buyer/manufacture in order of RSPO certified product transaction. The company has a procedure to identify buyer as trader and distributor as require of first selling transaction step. If any, there are potential buyer as trader and distributor so that they shall license from RSPO. GOPDC is RSPO member under SIAT SA with membership number Whereas, member ID on behalf GOPDC refinery on etrace is RSPO_PO since 14 May 2015 and category as refinery. Compliance status : Full Compliance 5.2 Supply Chain Model Management GOPDC still has commitment to implement RSPO SCCS with supply chain model is Mass Balance system ( Module C) due to the nature of incoming material from company s supplier are Mass Balance and company s production facilities are not sufficient enough to implement others supply chain model. GOPDC POM is CPO & PK certified supplier from GOPDC refinery with supply chain model is Mass Balance (MB). Whereas, other suppliers has not been implemented RSPO certification system. Compliance status : Full Compliance 5.3 Documented procedures

8 Page 8 of 21 The company has created the documented procedure such as flow process, standard operational procedure to fulfil the requirements of RSPO SCCS systems, some of the documentation are : 1. SOP of RSPO supply chain certification system responsibilities (revision 01) dated on 02 March 2016; 2. SOP internal audit of RSPO SCCS standard (revision 01) dated on 25 February 2016; 3. SOP management review (revision 02) dated on 25 February 2016; 4. SOP stakeholder complaint (revision 01) dated on 05 March 2016; 5. SOP approving RSPO certified suppliers and handling non-conforming products (revision 01) dated 04 March 2016); 6. SOP mass balance supply chain system (revision 02) dated on 14 March 2016; 7. SOP weighbridge (TS-MILL-SOP-001) dated on 25 February 2016; 8. SOP conversion rate testing and calculation (TS-MILL/SOP/012) dated on 14 March 2016; 9. Control of records procedure (FS-SOP-02) dated on 25 February However, two SOPs were not completed as appropriate with RSPO SCCS requirements are: 1). SOP mass balance supply chain system rev.02 on article 4.c has not covered the export transaction because invoice and waybill not include on export document and 2). SOP approving RSPO certified supplier and handling non-conforming product rev.01 on step 2 has not covered that the company will inform to CB if any new contractor used for the transporting of RSPO certified materials/products on the next audit. It was raised as non-conformity (NCR No of 01). The company keep record and document of purchase, process and sell by completely such as : 1. Incoming material : from internal is crude oil request form and quantity of CPO transferred to refinery and from external are waybill or weighbridge ticket from supplier and weighbridge ticket from GOPDC refinery. 2. Process: CPO stock monthly, PKO stock sheet monthly, refinery daily production report and refinery data collection sheet. 3. Sell: contract, purchase order, invoice, and waybill. Training/awareness training about RSPO SCCS has carried out on 8 March 2016 by third party (QSHE) company where training record and document was available. The name of the person having overall responsibility for and authority over the implementation of these requirements and compliance with all applicable requirements is Technical Director (TD). The management assigned Technical Director as RSPO SCCS management representative or overall responsibility for implementation of the SCCS through SOP of RSPO supply chain certification system responsibilities (revision 01) dated on 02 March 2016 signed by Chief Operational Officer. During the audit time, Mr. Gopi Kumar (Technical Director) has good knowledge and able to demonstrate awareness of the facility s procedures. Compliance status: Non Compliance NCR No of 04 There are two SOPs not complete as appropriate with RSPO SCCS requirement are : 1. SOP mass balance supply chain system rev.02 on article 4.c has not covered the export transaction because invoice and waybill not include on export document and 2. SOP approving RSPO certified supplier and handling non-conforming product rev.01 on step 2 has not covered that the company will inform to CB if any new contractor used for the transporting of RSPO certified materials/products on the next audit Purchasing and goods in GOPDC refinery has a mechanism to receiving material (RSPO certified and non-certified) i.e. SOP mass balance supply chain system (revision 02) dated 14 March 2016 point 2 and SOP approving RSPO certified suppliers and handling non-conforming products (revision 01) dated 04 March 2016 step 5. Based on SOP approving RSPO certified suppliers and handling non-conforming products (revision 01) dated 04 March 2016 step 1 that the contract mention are the status of RSPO certification of the supplier (in-

9 Page 9 of 21 clude of mass balance model). If raw material from GOPDC POM that there are mass balance model on crude oil request form. During audit, the company has documentation (draft/sample) of certified purchasing (external supplier) or certified transfer request (internal) with mass balance model. Based on SOP mass balance supply chain system (revision 02) dated on 14 March 2016 section 2.1.b that the company shall ensuring product are verified as being RSPO certified from external supplier with mechanism are : The weighbridge clerk is informed by the Technical Director of incoming RSPO certified material so he can do the appropriate checks On reception of RSPO certified products, the weighbridge clerk should collect a delivery note and supplier waybill and weighing ticket from the transporter. These documents are then given to the sales clerk for filing. The sales clerk and Technical Director verify that the supplier delivery note contains the following information appropriate with contract or purchase order before unloading of RSPO certified products is authorized are name of product including the applicable supply chain model, the quantity of the product delivered and the name of the seller The Technical Director confirm of the purchase announcement from client s shipping announcement on the RSPO IT platform If receive of material from internal that all certified status so that Technical Director ensuring information of certified on transfer request form available. Transfer material from internal source (GOPDC POM) not transaction on etrace. The company has mechanism to ensure the validity of the Supply Chain Certification of suppliers and will be checked via the list of RSPO Supply Chain Certified facilities on the RSPO website annually and mechanism of handling non-conforming material and/or documents, it has stated on SOP approving RSPO certified suppliers and handling non-conforming products step 1 and 6. List of supplier per December 31, 2015 are GOPDC POM as certified status (CPO & PK), Dekel Oil Mill, Abidjan as non-certified status (CPO), Obooma Farms as non-certified status (CPO), Unilever Ghana Ltd as non-certified status (CPO). There is no identified non-conforming material/product/document in receipt material or dispatch product process Period of January to December 2015, Compliance status : Full Compliance 5.5 Outsourcing Activities All production process is available on company s facility include of storage facilities on Tema Tank Farm. The company using outsourcing process for finished goods transportation and has ensured that all transport companies complies with the requirements of the RSPO SCC standard. The company using four transport company such as Vector Haulage & Engineering Co.Ltd, Home foods processing & cannery ltd, Y&K Investment Ltd and Makots Associates Company Ltd where contract/agreement document with fourth company which signed by both parties was available, i.e. : 1. Addendum to the haulage service agreement dated on 4 March 2016 between GOPDC with Vector Haulage & Engineering Co.Ltd (first contract/agreement on 15 February 2016). Vector has informed the list of vehicle with total of vehicle is 63 units. 2. Addendum to the haulage service agreement dated on 1 March 2016 between GOPDC with Home foods processing & cannery Ltd (first contract/agreement on 21 October 2015). 3. Addendum to the haulage service agreement dated on 1 March 2016 between GOPDC with Y&K Investment Ltd (first contract/agreement on 31 July 2015). Y&K Investment has informed the list of vehicle with total of vehicle is 10 units. 4. Addendum to the haulage service agreement dated on 1 March 2016 between GOPDC with Makots Associates Company Ltd (first contract/agreement on 15 June 2015). Makots has informed the list of vehicle with total of vehicle is 20 units.

10 Page 10 of 21 Contains of addendum are article 1 : the contractor agrees that in transporting RSPO certified product for and on behalf of GOPDC, shall follow the mass balance supply chain system and not mix RSPO certified product with any other product in the performance of the contract in accordance with the previsions stated in the RSPO SCC standard in particular clauses 5.5 (include of the certification body have access to the transportation company if an audit is deemed necessary) and thereby forming an integral part of the main contractor agreement. Moreover, The contractor agrees that: 1).in case of loss or destruction of RSPO certified product during the transportation of any such product the contractor shall inform GOPDC head of sales and marketing, 2). GOPDC may take action against any contractor in breach of one or more terms of the RSPO SCCS standard. GOPDC reserves the right to terminate and will not renew or initiate an agreement with the contractor. First agreement/contract has informed regarding to transport the said products to and from the designated locations (Kwae to Tema tank farm, Kwae to designated customers and Tema tank farm to designated location). Based on contract and result of verification that GOPDC Refinery has legal ownership of all input material to be included in transportation process, has communicated SOP of dispatch product and relevant contain of contract to driver from transportation company and transport company would be provided relevant access for certification body to their respective operations, systems and any and all information. Mechanism of inform to certification body regarding the names and contract details of any new contractor used for transport of RSPO certified product has not covered on SOP approving RSPO certified supplier and handling non-conforming product rev.01 on step 2. This is raised as non-conformity on indicator 5.3 above. Compliance status : Full Compliance 5.6 Sales and goods out Findings : The sales and goods out mechanism of the company are described in their procedure of mass balance article 4. During audit, there are not sales or good out with RSPO certified status but the company has provided draft/sample of delivery document with RSPO certified status and the procedure of mass balance article 4 has stated that invoice (one of delivery document) contains the following information : the name and address of the buyer, the name and address of the seller, the loading or delivery date, the date on which the document were issued, a description of the product (include of mass balance supply chain model), the quantity of the products delivered, RSPO supply chain certificate number and a unique identification number or weighbridge ticket number. All information has available on draft/sample of invoice to buyer. The current condition that all information required was available on delivery document (waybill or invoice or weighbridge ticket) except RSPO supply chain certificate number and mass balance supply chain model because the company has not got RSPO supply chain certificate as samples : WB ticket no , invoice no.ksls , waybill no.6977, date : 27 Feb 2016, type of product : olein, quantity : ton (25,140 kg), buyer : Home foods processing & cannery Co.Ltd with address : PO Box KIA Accra, seller : GOPDC Ltd Tema Tank Farm, plot MS3, Main Harbour Road, Tema, PO BOX M428-Accra,Ghana, Tell : +233 (0) , Fax : +233 (0) , info@gopdcltd.com and ltd.com, vehicle : GT 2429 W. WB ticket no , invoice no.ksls , waybill no.6950, date : 19 Feb 2016, type of product : olein, quantity : ton (25,990 kg), buyer : Y&K Investments Limited with address : PO Box 2624 Koforidua, seller : GOPDC Ltd Tema Tank Farm, plot MS3, Main Harbour Road, Tema, PO BOX M428-Accra,Ghana, Tell : +233 (0) , Fax : +233 (0) , info@gopdc-ltd.com and ltd.com, vehicle : ER WB ticket no , invoice no.ksls , waybill no.6949, date : 19 Feb 2016, type of product : olein, quantity : ton (11,600 kg), buyer : Y&K Investments Limited with address : PO Box 2624 Koforidua, seller : GOPDC Ltd Tema Tank Farm, plot MS3, Main Harbour Road, Tema, PO BOX M428-Accra,Ghana, Tell : +233 (0) , Fax : +233 (0) , info@gopdc-ltd.com and ltd.com, vehicle : GR Customer: B.Safienddine Ltd Lagos, Nigeria, product: Stearin, delivery date of 19 Dec 2015, source of product from Tema (8 truck on 10 Dec 2015: waybill no to and WB ticket no , 109, 111, 114, 119 (double because there are problem of machine), 121, 124) and Kwae (3 trucks). Declaration for customs use only no, /1 dated on 19 Dec 2015 amount of ton by land with transportation number GT8475 P, GR 8583 X and GE 5021 V and CoC no on 11 Dec 2015.

11 Page 11 of 21 The contract and from client/buyer are first information which used by GOPDC refinery for ensure RSPO certified or non-certified order. Product sent to Tema Tank Farm from GOPDC refinery (Kwae) not issued invoice but weighing ticket and waybill/delivery note only because that is transfer activity. Compliance status : Full Compliance 5.7 Registration of transactions GOPDC refinery has registered in etrace with ID number: PO because GOPDC is refinery, take legal ownership and physically handle RSPO certified product and are part of the supply chain of RSPO certified product. During audit that RSPO certified transaction not yet on etrace. 5.8 Training GOPDC Refinery has training plan in 2016 where one of training plan is RSPO SCCS training. Inside training plan has informed the name of personnel and their department such as technical director, sales clerk, operator, laboratory and mechanic, head of sales and marketing, commercial manager, tank farm supervisor, laboratory technical in Tema and Tema farm operator. The company has carried out RSPO SCCS training on 8 March 2016 at GOPDC management club house Kwae with trainer is Prince Atsu Tsamenyi & Frank Kwesi from QSHE (third party). Evidence of training such as training report, attendant list and summary of training evaluation and text book. Participant of training are 16 persons such as Junior Agronomist, Junior HSE/RSPO, commercial manager (in Tema), Marketing & Logistic Manager (In Tema), Supervisor in Tema, Technical Director, COO, Clerk, WB officer, Accounts, refinery supervisor, supervisor, QCO, ass.maintenance manager. Furthermore, event training above that the company has carried out awareness and socialization of RSPO SCCS to transport diver amount of 20 persons on 15 February 2016 at mill (reception hall), to laboratory amount of 11 persons on 3 March 2016 at GOPDC refinery laboratory, to filling plant operator amount of 11 persons on 28 February 2016 at filling plant, to refinery plant operator amount of 20 persons on 26 February 2016 at refinery plant, to production operator amount of 17 persons on 24 February 2016 at project office, to tema tank operator amount of 6 persons on 23 February 2016 at Tema tank farm and mill production operator amount of 39 persons on 8 January 2016 at mill assembly point. Based on interview with refinery operator, tema tank supervisor, technical director and head of sales and marketing that they are understand about procedure, their implementation, job description regarding RSPO SCCS implementation. 5.9 Record keeping The company has receipt record & report from supplier especially outside suppliers, dispatch product record and report, training record, contract of haulage service, etc with complete, accurate and accessible. Retention period of all organizational documents especially relevant of RSPO SCCS implementation is minimum of 3 years appropriate with control of records procedure (no.fs-sop-02 dated on 25 Feb 2016).

12 Page 12 of 21 The company has mass balance report in order of excel software/program for the record of the volume of RSPO certified material purchased and RSPO certified product dispatch monthly and three monthly bases Conversion factors Based on SOP mass balance supply chain system (version 02) date on 14 March 2016 and conversion rate testing and calculation SOP dated on 14 March 2016 that conversion rate are : FFB to CPO : 24% FFB to PK : 4% CPO to RBDO : 95% CPO to PFAD : 5% RBDO to Olein : 68% RBDO to Stearin : 32% PK to PKO : 45% PK to PKC/pellet : 55% All conversion rate above has appropriated with conversion rate on RSPO standard except RBDO to Olein and RBDO to Stearin because the company using justification base on experience period 2013 to 2016 (year 2013 : 66.36% (RBDO to Olein), year 2014 : 68.10% (RBDO to Olein), year 2015 : 71.15% (RBDO to Olein) and 2016 : 67.77% (RBDO to Olein)). Moreover, the company has explained that GOPDC s fractionation plant uses a very low membrane squeezing pressure (2.5-3 bars) which consequently yields us the 68% of palm olein and 32% of palm stearin and it has been designed and certified by Titraux (CMB) to run and produce the palm olein and stearin within the acceptable parameters pertaining to the extraction rates of the refined final products. The low squeezing pressure results in a good and low cloud point which conforms to the Ghana standards requirements and to the introduction or escape of palm stearin particles into the olein. The company has carried out tested regarding conversion rates for every 4 months. Last tested conversion FFB to CPO is 10 February 2016, 18 February 2016 and 10 March 2016 (24.11%, 23.83%, and 23.50%) on extraction rate determination report Claims During audit, the company has not claimed because this is main assessment. Based on SOP mass balance supply chain system that the only written claim GOPDC authorizes concerns the invoice of RSPO certified products sold on which the mass balance supply chain system and certificate number is mentioned. Any other allegation to GOPDC selling RSPO certified product will have to be approved by the GSM who will check conformity with the RSPO rule on communication and claim before authorizing Complaints

13 Page 13 of 21 GOPDC has established complaint handling mechanism, both handling complaint from client and other stakeholders. There is compliant format to be filled by complainer. The format will be reviewed by assigned Person In charge and need approval from (management director, head of directors and HSE). Until the audit time, there is no incoming complaint regarding refinery product and production process both from customers and other stakeholders Management review The company has SOP of management review (revision 02) dated on 25 February 2016 where it has stated in section of frequency and organization that the company will carry out management review once a year but if requested by the Direction an additional management review can be executed. SOP has covered regarding inputs on management review, documents made available and expected results at the end of the management meeting. Inputs of management review are state of progress of the achievement of objective and targets, process performance and product conformity, analysis of non-conformities and causes, change of corporate environmental/occupational health and safety-strategies, change of the company organization, review of the results of internal and external audits, review of discussions with external stakeholders/customer feedback, review of procedure manuals, status of preventive and corrective actions, follow-up of actions arising from the previous management review and recommendation for improvement. Whereas, the document made available to participants during the management review are the HSE internal audit report, the external audit reports, the procedure manuals and the report of the last management review. A meeting report will include the points discussed and conclude with the following decisions are the relevance, adequacy and effectiveness of the HSE and SC-management system, the progress of the implementation of the HSE policy, the achievement of objectives, the relevance adequacy and effectiveness of the actions put in place in response to the policy, the possible updating of the policy and HSE objectives, the possible improvements of the effectiveness of the management system (HSE and SC) and resource needs. Year 2016, the company has planned schedule of internal audit i.e. May 2016 at Refinery and September 2016 at Tema tank farm so that management review will carry out January or February Internal auditors are Helen Livingstone, Kwame Sarpong, Bashir Manu and Joseph Quaye at Refinery and Mariama Diallo and Gilbert Amenuvor at Tema tank farm. The company has carried out management review date on 19 February 2016 at management club house as chairperson are Gert Vandersmissen and Adgar Murray with scope of meeting are HSE performance, HACCP plan, food safety meeting minutes, quality trends for FFB and refined product, CCP monitoring form for sterilization, customer complaints forms, NCR database, food safety policy and food safety objective. Base on explain it that RSPO SCCS issues not include in management review year 2016 because RSPO SCCS has not been implemented so that internal audit as one of input of management review has not been carried out too. In the management review, there are update information regarding preparation of RSPO SCCS implementation are the members on the imminent SCC audit in March The RSPO SCCS was briefly presented to management. It was mentioned that GOPDC is currently implementing the mass balance SC model, which was explained. Section 3: Modular Requirements: Module C Mass Balance C.1. Definition

14 Page 14 of 21 The company commitment to implement mass balance supply chain model with prepare of SOPs and forms relate of RSPO supply chain. The company will monitor of receive raw material, processing and dispatch product of RSPO certified and RSPO non-certified on mass balance report by Technical Director (TD). In the refinery and tema tank farm has been mixed raw material or product between RSPO certified and RSPO non-certified. C.2. Supply chain requirements The company have mass balance report where it has consisted of reconciliation between the quantity of RSPO material bought and the quantity of RSPO material sold include control of purchases and sales of RSPO certified product and their derivatives and conversion rate each product. There is no separation between certified and non certified material along company s production process and product storage in Tema bulking. C.3. Processing The company using continuous process from FFB to their derivative. SOP mass balance supply chain system section 5 (mass balance calculation and control) has explained that GOPDC follows the fixed inventory period accounting system. The Technical Director fills in the mass balance calculation sheet on a daily basis and balanced it on a monthly basis. To fill in the sheet the Technical Director uses the information entered in ABS software. He verifies on a 3 month basis that the mass balance stock is positive. The Technical Director (TD) ensure that the quantity of physical RSPO mass balance material inputs and outputs are monitored and does not exceed between output to customer with input of received. During audit, the results of product each process was available on production report daily or monthly. Information of mass balance report and production report was appropriated regarding input, output and stock. C.4. Continuous accounting system Based on SOP mass balance supply chain system section 5 (mass balance calculation and control) has explained that GOPDC follows the fixed inventory period accounting system so that this is indicator not applicable. Compliance status: Not Applicable C.5. Fixed inventory periods

15 Page 15 of 21 Based on SOP mass balance supply chain system section 5 (mass balance calculation and control) has explained that GOPDC follows the fixed inventory period accounting system so that Technical Director verifies mass balance stock is positive till period of 3 months. During audit, the company has not been processed RSPO certified material so that stock and sell of product with certified status not available too. Based on condition it so there is no evidence that RSPO mass balance material inputs and outputs are balanced and does exceed 3 months and the company using overdraw data. Based on the production report and dispatch product report at refinery and receipt product report and dispatch report at Tema tank that the company dispatch or sell product to buyer on condition of positives stock and C.6. Conversion ratios Relate of explain indicator 5.10 that the company has stated conversion rate each product according set out by RSPO except RBDO to olein and RBDO to stearin because base on experience. During audit, all volume delivery is deducted from the material accounting system according conversion rate on the production report and dispatch report. Based on list of supplier period year 2015 that supplier has got RSPO certificate is GOPDC POM only with mass balance supply chain model. C.7. Yield scheme Relate of explain indicator 5.10 that the company has stated conversion rate each product according set out by RSPO except RBDO/RPO to olein and RBDO/RPO to stearin because base on experience. During audit, derivative products from CPO are RBDO/RPO, PFAD, olein and stearin. Whereas, from PK are PKO and palm kernel expeller or pellet. Based on list of supplier period year 2015 that supplier has got RSPO certificate is GOPDC POM only with mass balance supply chain model. 3.2 Status of Previously Identified Non-conformities This is main audit/assessment so that there is not information of previous non-conformity. 3.3 Identified Non-conformances against RSPO SCCS Requirements, Corrective Actions Taken and Auditors Conclusions 5.3 Documented procedures NCR No of 01 There are two SOPs not complete appropriate with RSPO SCCS requirement are :

16 Page 16 of SOP mass balance supply chain system rev.02 on article 4.c has not covered export transaction because invoice and waybill not include on export document and 2. SOP approving RSPO certified supplier and handling non-conforming product rev.01 on step 2 has not covered that the company will inform to CB if any new contractor used for the transporting of RSPO certified materials/products on the next audit. Corrections : SOP mass balance will revision be in cases where products are for export, the supply chain certificate number and mass balance supply chain model are mentioned in the commercial invoice that accompany the product to their final destination. SOP approving RSPO certified supplier and handling non-conforming product will revision be list of approved suppliers for RSPO product e.g. transporter will be communicated every year to the certification body. Corrective Action : The company wills ensuring all SOPs relate of RSPO supply chain according RSPO supply chain standard. Date of closed : 01 April 2016 Verification result: GOPDC Refinery has provided two revision of SOPs such as : SOP mass balance has revised on section 4.c be in cases where products are for export, the supply chain certificate number and mass balance supply chain model are mentioned in the commercial invoice that accompany the product to their final destination and section 4.d is mechanism of dispatch product from Tema tank farm are the Tema tank farm supervisor is informed to head of sales and marketing when products to be dispatched are RSPO certified. The supervisor then knows to enter the products dispatched as RSPO in the dispatch log sheet. He also verifies that the invoice is an RSPO invoice and checks that commercial invoice and packing list contain appropriate information in case of export (see 4.c). SOP approving RSPO certified supplier and handling non-conforming product has revised on step 2 that once the supplier has been approved by HSE, it is added on the approved supplier of RSPO certified product list (e.g. transporter) with contract detail. It will present to the certification body during surveillance audit every year. Auditor Conclusions: Closed 3.4 Conclusion and Approval for RSPO Supply Chain Certification The audit team has confirmed through the audit process that GOPDC Refinery has established and maintains an effective system to ensure compliance with the RSPO Supply Chain Certification System requirements (dated November 2014). PT TUV Rheinland Indonesia recommends GOPDC Refinery for certification of compliance to the RSPO Supply Chain Certification System requirements, after elimination of the major non conformities. The found nonconformities see section 3.4 above all non-conformities were eliminated and corrected.

17 Page 17 of CERTIFIED ORGANISATION S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY 4.1 Date of Next Surveillance Visit The next surveillance visit is planned for January Acknowledgements of Internal Responsibility and Formal Sign-Off by Client It is acknowledged that the assessment visit was carried out as described in this report and we accept the assessment findings and report content. Signed on behalf of GOPDC Refinery Signed on behalf of PT TUV Rheinland Indonesia Florent Robert Hendra Fachrurozy Group Sustainability Manager Lead Auditor Date: 11 April 2016 Date: 11 April 2015

18 Page 18 of 21 APPENDICES Appendix 1: Details of Supply Chain Certification Certificate

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20 Page 20 of 21 Appendix 2: List of Abbreviations B/O CPO CSPO CPKO MB PKE PKO RBDO SCCS WB Bill of Lading Crude Palm Oil Certified Sustainable Palm Oil Certified Palm Kernel Oil Mass Balance Palm Kernel Expeller Palm Kernel Oil Refine Bleaching Deodorant Oil Supply Chain Certification System Weight Bridge Appendix 3: Observations and Opportunities for Improvement No. Observations / Opportunities for Improvement 1. The company create the recapitulation of RSPO mass balance both of location (Kwae and Tema) and three monthly basis 2. The company conducting trial/simulation for RSPO SCCS implementation which refer to internal procedure 3. The company design keep records and documents mechanism especially receipt and dispatch activities Appendix 4: List of supplier and buyer No. Name of Supplier/buyer Address No. Tell Contact Person Certificate No. Supply chain model Expiry Date 1. GOPDC POM (as CPO & PK supplier) Kwae near Kade, Kwaebibirem District, Eastern Region, Ghana +233(0) Gopi Kumar MB 11 March Dekel Oil Mill (as CPO supplier) Obooma Farms (as CPO supplier) Unilever Ghana Ltd (as CPO supplier) B. Safieddine Ltd (as buyer) Delta Agro Ltd (as buyer) Unilever Ghana ltd (as buyer) Nutrifoods Ghana Ltd (as buyer) Ameen Sangari Industries (as buyer) Abidjan, Ghana Ghana Ghana Lagos, Nigeria Ghana Ghana Ghana Ghana

21 No Name of Supplier/buyer Home foods processing & cannery Co. Ltd (as buyer) Monapak Manufacturing Ltd (as buyer) Nestle Ghana Ltd (as buyer) Y&K investment Ltd (as buyer) Address No. Tell Contact Person Certificate No. Page 21 of 21 Supply chain model Ghana Ghana Ghana Ghana Expiry Date Appendix 5: List of Certified Customer No. Name of customer Address Contact Person Certificate No. Supply chain model Expiry Date