Roundtable on Sustainable Palm Oil

Transcription

1 Roundtable on Sustainable Palm Oil Supply Chain Certification Report Report no.: SCC_ Assessment against RSPO Supply Chain Certification Systems Year 2011 FELDA IFFCO OIL PRODUCTS SDN. BHD. Lot 82 Jalan Besi 2, Pasir Gudang Industrial Estate, 81700, Pasir Gudang Johor Malaysia Date of assessment: March 18, 2013 Report prepared by: Dian S. Soeminta (RSPO Lead Auditor) Certification decision by: Manfred Herbert Lottig (COO TUV Rheinland Malaysia) Certification Body: TUV Rheinland Malaysia Sdn. Bhd. No , Jalan Perindustrian USJ 1/6, Taman Perindustrian USJ 1, Subang Jaya, Selangor Darul Ehsan, Malaysia. Tel: Fax:

2 TABLE OF CONTENTS 1.0 SCOPE OF SUPPLY CHAIN CERTIFICATION ASSESSMENT Executive Summary and Scope of Assessment Certification Details Organisational Information / Contact Person 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 Identified Non-conformances against RSPO SCCS Requirements, s 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 15 APPENDICES 16 Appendix 1: Details of Supply Chain Certification Certificate 16 Appendix 2: List of Abbreviations 17 Appendix 3: Observations and Opportunities for Improvement 17

3 Page 3 of SCOPE OF SUPPLY CHAIN CERTIFICATION ASSESSMENT 1.1 Executive Summary and Scope of Assessment The operations of FELDA IFFCO Oil Products Sdn. Bhd. were assessed against Module B and Module C of the RSPO Supply Chain Certification Systems (SCCS) document (November 2011). The scope of the Supply Chain Certification System assessment covers the implementation of the Segregation and Mass Balance supply chain model of FELDA IFFCO Oil Products Sdn. Bhd. This is not a multi-site certification. The assessment was carried out on March 18, 2013 and a total of 8 non-conformities were found. 1.2 Certification Details The details of RSPO certification of FELDA IFFCO Oil Products Sdn. Bhd. are as per the table below Table 1: Membership & RSPO Supply Chain Certification details of FELDA IFFCO Oil Products Sdn. Bhd. RSPO Membership no.: RSPO Supply Chain Certificate no.: Date of RSPO Supply Chain certificate & validity: 28/05/2013 Refer to Appendix 1 for further details of the RSPO Supply Chain certificate. 1.3 Organisational Information / Contact Person Contacts details of the company are as follows: Company Name: Address: Contact Person: Position: FELDA IFFCO Oil Products Sdn. Bhd. Lot 82 Jalan Besi 2, Pasir Gudang Industrial Estate, 81700, Pasir Gudang, Johor, Malaysia Mr. Zulkafli Bin Yasman Product Head Telephone: ZYasman@feldaiffco.com 1.4 Summary of Previous Assessment This is the company s first SCCS audit.

4 Page 4 of ASSESSMENT PROCESS 2.1 Certification Body TUV Rheinland Malaysia Sdn. Bhd. 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. TUV Rheinland Malaysia offers certification for a wide range of management systems according to established international standards including ISO 9001, ISO 14001, OHSAS 18001, SA 8000, as well as CDM Validations and Verifications. TUV Rheinland Malaysia s office is located in Subang Jaya, Malaysia. 2.2 Qualifications of Lead Assessor and Assessment Team Name Position Qualifications / Experience Dian Susanty Soeminta Carol Ng Lead Auditor Expert Education: Bachelors Degree in Forestry - Bogor Agriculture Institute. Indonesia, (1990 to 1995). Trainings attended: ISO 9001:2000 lead assessor course Neville Clark; ISO lead assessor course - PE International; OSHAS: 2007 training, Sustainable Forest Management (SFM) - Forest Stewardship Council (FSC) system training; Chain of Custody training for FSC System. RSPO lead Auditor training year 2010 by Pro Forest and Wild Asia. SCCS training by David Ogg Consulting. ISPO Lead Auditor training Working experience: Professional forester since 1995 to Lead Auditor for Forest Stewardship Council (FSC), Sustainable Forest Certification (SFC) and Chain of Custody (COC) Certification. Lead auditor for Environmental Management System (EMS) and Quality Management System (QMS) audits. Conducted sustainable forest management certification audits on FSC and Indonesian Ecolabel Institute (Lembaga Ecolabel Indonesia - LEI) standards for 20 companies, 50 COC FSC/LEI audits, and EMS and QMS audits at more than hundred companies for TUV Rheinland Indonesia. Instrumental in the preparation of TUV Rheinland Indonesia for Sustainable Forest Management Certification System and TUV Rheinland Malaysia for RSPO Certification. Member of Task Force for Indonesian National Interpretation (Guidance on scheme smallholder RSPO certification). Developed TUV Rheinland RSPO Gap Assessment Checklist and report template. Education: Bsc. Biotechnology & Bsc. Environmental Management - Monash University. Trainings attended: RSPO Malaysian National Interpretation Requirements and Certification SIRIM; Implementation of RSPO Principles & Criteria - QA Plus; RSPO Stepwise Support Programme; 2nd Biodiversity Seminar RSPO; Certification Body Biodiversity Forum & Workshop RSPO; Environmental Quality Act 1974 (DOE) and ISO9001:2008 QMS Conversion Requirements (TUV Rheinland). Working experience: Experience in implementing sustainable practices in Sime Darby plantations to comply with RSPO requirements, performing RSPO internal audits and implementing sustainability projects. Prepared training materials and conducted several RSPO requirements trainings and workshops to plantation management teams (2008).

5 Page 5 of Assessment Methodology & Agenda The supply chain certification assessment was conducted on March 18, 2013 as per the assessment program below. The assessment was carried out in accordance with TUV Rheinland Malaysia 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 not more 30 days after the closing meeting. Verification of closure of non-conformances was conducted through document check to all documents submitted. The certification assessment agenda is as explained below. Main Assessment Agenda: Date Location/ Main sites Main activities March 13, 2013 Pasir Gudang Opening Meeting Company Profile Presentation Document check for SCCS System Lunch and break Refinery, Fractionation Plant Tour Incoming material Hydrogenation Product Processing Finished Good Packing Sales Department Purchasing Department Sales and Export Document Purchasing document 3.0 ASSESSMENT FINDINGS Felda Iffco Oil Products Sdn. Bhd. is a joint venture company with 37.45% shares owned by Felda Palm Industries Sdn. Bhd., 37.45% owned by Felda Iffco Sdn. Bhd., 17.1 % owned by Mitsui and Co. Ltd and 8 % owned by Asahi Denka Kogyo K.k. The company was incorporated on 27 October 1975 under the name Felda Oil Products Sdn. Bhd. with Manufacturing License no dated 8 March 1977 for production of cooking oil for other oil derivatives. The company's name was changed to Felda Iffco Oil Products Sdn. Bhd. as per the approval certificate from the Companies Commission of Malaysia dated 24 December FELDA IFFCO Oil Products Sdn Bhd is mainly involved in refining and fractionating of palm oil leading to the production of its core products such as refined, bleached, deodorized (rbd) palm oil, rbd palm olein, palm mid fractions, rbd palm stearin, soft stearin and palm fatty acid distillate. The facility has received numerous accreditations such as ISO 9001:2008, HACCP, OSHAS and and Halal certifications. FIOP s day-to-day operation is run and managed by more than 101 employees and professionals. The company has received a new manufacturing license under new company name dated 25 January 2012, license no MPOB license for the company is valid until 31/12/2013. Company plan to produces certified products such as: - RBDPO (Refined Bleached Deodorized) - RBDPL (Refined Bleached Olein) - RBDPS (Refined Bleached Sterin) - RBDOL IV 63 (Refined Bleached Olein IV 63) - RBSST IV II (Refined Bleached Stearin IV II) - PMF IV 45 (Palm Mid Fraction IV 45)

6 Page 6 of Description of Supply Chain Management System The following is a description of the findings pertaining to 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: General Chain of Custody System Requirements for the Supply Chain 1. Applicability of the General Chain of Custody System Requirements for the supply chain The company has established supply chain management system integrated with the implementation of quality management systems at ISO 9001:2008 that has been certified by independent certification bodies. Considering the nature of incoming material, company decide to implement Segregation (SG) and Mass Balance system (Module B &C). To support implementation of RSPO supply chain, company has established their quality manual to include all RSPO SCCS requirements i.e. RSPO Manual/SM-001. Relevant procedure was established, e.g. -Purchasing and Incoming certified material (CPO and RBDPO) -Receiving certified material (CPO and RBDPO) -Certified product processing Certified product discharge -Training procedure -Non conforming product -etc. However some procedures are still not established as defined through NCRs stated on below section. FELDA IFFCO Oil Products Sdn. Bhd. is RSPO member with membership number Compliance status: Non Compliance See NCR on relevant issues below. 2. Documented procedures There is a set of existing standard operation procedures for incoming material CPO and RBDPO, product processing until product dispatch for each product, while incoming order procedure is handling by trading department in Felda Iffco head office Port Klang Kuala Lumpur. FELDA IFFCO Oil Products Sdn. Bhd. provides quality management system as a part of compliance to this standard as determined on document The mill has identified all processes needed. Their application, interaction and sequence are also determined. There are several existing standard operation procedures such as explained on FELDA IFFCO Oil Products Sdn. Bhd. manual of operation and procedures. The name of the person having overall responsibility for and authority over the implementation of these requirements and compliance with all applicable requirements has not been documented. This was raised as a non-conformity. Compliance status: Non Compliance NCR No of 08 The name of the person having overall responsibility for and authority over the implementation of these requirements and compliance with all applicable requirements has not been documented.

7 Page 7 of Purchasing and goods in FELDA IFFCO Oil Products Sdn. Bhd. plans to produce certified product such as of oils and fats with palm and lauric oil or its admixtures and fractions as main component in shortening, margarine, speciality oils and fats, ghee, cooking oils and bulk oils from certified CPO and RBDPO. Most of certified CPO will be come from SCCS certified palm oil mill under FELDA group, purchased from other certified mills, while certified RBDPO come from others certified processor outside FELDA group. Purchasing department is the section which is responsible to find certified material from certified supplier. According certified material purchasing procedure all purchased order for certified material will indicate claim of certified material to be purchase whether Identify Preserved, Segregation to be processed as certified product with claim Segregation (SG) while material with Mass Balance claim will be processed for certified product with Mass Balance claim.. The company has mechanism for receiving certified material. To know the quantity or volume of incoming certified material, the road tanker will stop in weigh bridge, the operator will check relevant document and issued weigh bridge. The document to be verified from certified sources are: Delivery note including wet stamp from the origin estate and will be inform certified code including selected SCC Model. All certified product will be transferred to assigned material storage tank, for Mass Balance material will be transfer to storage tank No. 101A, 101B and 101D and for certified segregated material will be transferred to storage tank 101C. The operator will indicate information regarding storage tank location on each weigh bridge ticket according to relevant claim. The company has established a mechanism for selection and evaluation of certified suppliers following their quality management system, however at the audit time the company has not established the list of certified suppliers including information about their certification status and SCC module usage. The company has no clear mechanism to check the validity of the Supply Chain Certification of suppliers and period to update supplier information. This was raised as a nonconformity. The company has no list of supplier that demonstrates that purchases are made to the material category agreed with their supplier certification scope (IP, SG, MB) FELDA IFFCO Oil Products Sdn. Bhd. has no mechanism in place for handling non-conforming material/documents or to take appropriate steps when the Supply Chain certification of a supplier is found to be invalid. The company has not defined non-conforming products for finished goods and actions taken for next step. This is raised as nonconformities. The company has been established mechanism to inform CB immediately if there is a projected overproduction. Compliance status: Non Conformance NCR of 08 The company has no clear mechanism to check the validity of the Supply Chain Certification of suppliers and period to update supplier information. NCR of 08 The company has no list of supplier that demonstrates that purchases are made to the material category agreed with their supplier certification scope (IP, SG, MB). NCR of 08 FELDA IFFCO Oil Products Sdn. Bhd. has no mechanism for handling non-conforming material/documents or to take appropriate steps when the Supply Chain certification of a supplier is found to be invalid. The company also has not defined non-conforming products for finished goods and actions to be taken for next step.

8 Page 8 of Outsourcing activities The facility currently outsources storage of a certain volume of products at Felda Johor Bulkers Sdn. Bhd. The products are stored in 9 tanks with total capacity of all tanks adding up to 12,300 MT. As explained by management, all tanks are cleaned and inspected by FELDA IFFCO Oil Products Sdn. Bhd. before transferring in new material and there will be no mixing of segregated and mass balance material in same tanks. Implementation will be confirmed during next surveillance audit. Transportation of palm olein 63, and palm mill fraction (PMF) 45 is also subcontracted. The tanks are inspected before filling and in case it is found to be not adequately clean, the tank will be rejected. Records of tank inspections are maintained by lab assistants or analysts. The company has a contract with their outsourced companies however the contract between FELDA IFFCO Oil Products Sdn. Bhd. and two existing outsourced companies (for bulking and transportation) had not included requirements as stated on RSPO SCCS part i.e. the company has to ensure that certification bodies have access to the outsourcing contractor or operation if an audit is deemed necessary. Compliance status: Non Compliance NCR of 08 The contract between FELDA IFFCO Oil Products Sdn. Bhd. and two existing outsourcing companies (for bulking and transportation) has not included statements regarding access for certification body to the outsourcing contractor or operation if an audit is deemed. 5. Sales and goods out The sales and goods out mechanism of the company are described in their procedure of sales of palm oil. There are two mechanisms for sales of out-going finished goods and products in FELDA IFFCO Oil Products Sdn. Bhd., i.e. by road tanker and vessel. Certified product from dedicated storage tank will be dispatched through dispatch pipe directly to the truck tank, while if the product will be transported using vessel, certified product from dedicated storage will be pumped using pipe line to bulker at Pasir Gudang Port then to the Vessel. Information for outgoing certified product will be recorded in several type of records depend on the transfer method used such as: - Vessel: Trade confirmation; Shipping Instruction (SI); tanker Bill of lading (B/L); Certificate of Analysis; Commercial invoice; Custom form No.02; Tanker Form No.02; Packing List; Survey Report (Certifying Suitability and Cleaning); certificate of weight/analysis. Specification of Poram - Road tanker: Commercial Invoice, Malaysian Palm Oil Board Format L.3 (MPOB Borang L.3) Weight Bridge Ticket and delivery Note. - Container or ISO Tank: Packing list, Bill of Lading (B/L), Certificate of Analysis (F-WINA/QA/011); Weighbridge Ticket. All product dispatched to buyer, every certified product delivered has information about: Reference Number, Date of issued, Delivery Order number, Contract Number, buyer name including the address of buyer, the quantity of the products delivered and Reference to related transport documentation. Information about the name and address of the seller has been attached on every delivery documents e.g. letter head and information inside documents, including information about loading/delivery date. The company has implemented this system for their regular products while the company will include certified product claim and SCC certificate number on each delivery document i.e. Mass Balance (MB) or Segregation (SG) as selected product module. However, the sales document currently states the RSPO membership number instead of the RSPO certificate number. Compliance status: Non-compliance NCR No of 08 The sales document states the RSPO membership number instead of the RSPO certificate number.

9 Page 9 of Registration FELDA IFFCO Oil Products Sdn. Bhd. is producing derivative product from CPO and RBDPO, during main assessment process company has established specific SOP for registration every transaction to RSPO E-Trace as required by RSPO-SCC standard. However, the company is not yet registered on the RSPO IT system and has yet to carry out any transactions on the system as they are not yet certified. Compliance to this requirement will be verified during the next surveillance audit. Compliance status: Compliance 7. Training The facility has a training programme for year 2013 which covers RSPO Awareness Training, but not on implementation of the SOPs. There is also no training done yet on the new RSPO IT system, etrace. This was raised as an observation. The facility has records of SCCS training provided for staff on 30 January 2013 (3 Sessions: 17 staff attended first session, 7 staff attended 2 session and 6 staff attended third session) and 31 January (17 staff attended one session). These sessions were RSPO Awareness trainings only. There was additional training conducted for 11 staff, 6 staff on 13 March 2013 and 5 on 14 March The personnel trained included the plant manager, operations staff at weighbridge and CPO reception, production staff at all main refinery processes, and finance and purchasing staff. The training covered training on the Supply Chain SOP dated January Compliance status: Compliance with observations 8. Claims The company has an SOP for making claims certified product according RSPO communication and claims. The SOP will only be implemented upon supply chain certification approval, therefore compliance will be verified during the next surveillance audit Compliance status: Not Applicable Section 2: Modular Requirements: Module B Segregation / Module C Mass Balance B.1 /C.1. Processing The mill receives certified and non-certified material, management decided to implement mass balance for their certified product. The mill has established a clear system and standard operation procedures including record system to ensure that the supply chain model implemented by the facility shall be the same as the model used by their supplier or a less strict system The mill also has mechanism to prove that the certified product can be traced back to only certified material. The organization has established a mechanism for control and maintenance of the data and documents used in production process i.e. Flow Process of RSPO Oil with document number RS002 this is the mechanism to produce certified product from certified CPO material, while process to produce certified product from RBDPO the mechanism will following document RS003-Process Flow of RSPO Oil. During the audit, it was sighted that company has not identified claimed product (SG/MB) in all

10 Page 10 of 17 daily production document/reports. This was raised as a non-conformity. The mill has record and balance all receipts of RSPO certified material and non certified material and deliveries of RSPO certified product on daily basis; All volumes of product that are delivered are deducted from the material accounting system according to actual daily conversion ratios. The material balance can show delivered product sales from a positive stock within the past three month. Since company define to implement segregation auditor found several potential areas that have risk of contamination between certified materials and non-certified. However company has not identify location/process (critical control point) stage which has potential mixing/contamination and provide information about the counter measure to control the mixing condition. This is raised as non conformity. Compliance status: Non Compliance. NCR No of 08 The company has not identified claim product (SG/MB) in all daily production document/reports NCR No of 08 The company has not identified the location/process (critical control point) stages which have potential for mixing/contamination and provide information about the counter measure to control the mixing condition. B.2 /C.2. Record keeping As stated on declaration 5 dated January 01, 2013 the company stated the retention time of records related SCCS RSPO implementation shall be at least five (5) years. The storage and maintenance of documents is the responsibility of the respective departments. The company has developed a procedure to trace the source of certified materials received, as defined in document name Process Flow of RSPO Oil document dated November 7th 2012 Doc No RS 002, and also developed related documentation to apply the procedure. This procedure and documentation will be applied after the company get SCCS certificate and produces certified product. The company will clearly indicate the supply chain model used with trade names in relevant documents, e.g. purchase and sales contracts with *product name*/ SG Segregation or MB Mass Balance. Compliance status: Full compliance C.3. Mass balancing system FELDA IFFCO Oil Products Sdn. Bhd. has establish a mechanism to ensure that the quantity of physical certified material RSPO mass balance material inputs and outputs (volume or weight) at the physical site are monitored on a real-time basis. All volumes of palm oil that are delivered are deducted from the material accounting system according to actual daily conversion ratios. A product manager has been assigned to monitor daily report regarding Internal material accounting system will be complies with the RSPO requirement such as can only deliver Mass Balance and Segregation sales from a positive stock. The company will inform CB if facing condition to make sell short. The implementation of certified product accounting system will be started after FELDA IFFCO Oil Products Sdn. Bhd. getting certified approval from RSPO CB. Compliance status: Full Compliance

11 Page 11 of Identified Non-conformances against RSPO SCCS Requirements, s Taken and Auditors Conclusions SCCS Non-conformance of 08: Clause The name of the person having overall responsibility for and authority over the implementation of these requirements and compliance with all applicable requirements has not documented. Correction Human Resource department issue appointment letter to Mr. Zulkafli as RSPO MR by 18/03/2013 Attached RSPO appointment letter.doc Management must immediately inform HR to issue appointment letter. Auditor Conclusions: Closed Date of closure: March 28, 2013 Verified Document: The company provided assignment letter no. (69) A/2/11/224 dated March 18, 2013 signed by Plant Manager. The letter decided to appointed the Product Head as Management Representative for establishing, documentation, implementing and maintain RSPO supply chain in FELDA IFFCO Oil Products Sdn. Bhd. The letter also determines all jobs description for RSPO SCCS Management Representative. SCCS Non-conformance of 08: Clause The company has no clear mechanism to check the validity of the Supply Chain Certification of suppliers and period to update supplier information. Correction MR revised RSPO document and include mechanism to check the validity of the supply chain certification of suppliers and period of update RSPO MANUAL SM001.doc Item No. 11 Review RSPO document With RSPO team member and update any changes. Auditor Conclusions: Closed Date of closure: March 28, 2013 Verified Document: The company provided a revised RSPO SCCS Manual version 02, dated March 11, 2013, in section 11 it has been stated regarding the company s mechanism to check validity of Supply Chain certification of suppliers. It is stated that the company will verify the validity of SCC of suppliers every six (6) month and check updates in the RSPO supplier list through RSPO website for current list of supply chain certified companies ( SCCS Non-conformance of 08: Clause The company has no list of suppliers that demonstrates that purchases are made to the material category agreed with their supplier certification scope (IP, SG, MB) Correction The company made a supplier list. Samples of RSPO supplier list was provided

12 Page 12 of 17 To frequently update RSPO supplier list Auditor Conclusions: Closed Date of closure: March 28, 2013 Verified Document: The company provide list of suppliers on document no RSPO-QC-01 rev. 00 dated March 25, The list include the following information about supplier s name; Certificate number, supplier s SCCS module, related certification body, validity of supplier s certificate and annual claim capacity. The list will be updated every six months, as stated on the list of supplier. SCCS Non-conformance of 08: Clause FELDA IFFCO Oil Products Sdn. Bhd. has no mechanism for handling non-conforming material/ documents or to take appropriate steps when the Supply Chain certification of a supplier is found to be invalid. The company also has not defined non-conforming products for finished goods and actions to be taken for next step. Correction MR included procedure for handling non-conforming materials/documents in RSPO MANUAL SM001.doc Attached RSPO MANUAL SM001.doc Item No. 9 Review RSPO document with RSPO team member and update any changes during management meeting Auditor Conclusions: Closed Date of closure: March 28, 2013 Verified Document: The company provide revised RSPO SCCS Manual version 02, dated march 11, 2013, in section 09. The manual has determined a mechanism for handling non-conforming material/documents. This mechanism has explained the steps when the Supply Chain certification of a supplier is found to be invalid. The company has been defined non-conforming product for finished goods and actions to be taken for next step in the new RSPO SCCS Manual. SCCS Non-conformance of 08: Clause The contract between FELDA IFFCO Oil Products Sdn. Bhd. and two existing outsourcing companies (for bulking and transportation) has not included statements regarding access for certification body to the outsourcing contractor or operation if an audit is deemed. Correction Action MR had include outsourcing activities in the RSPO manual SM001.doc the outsourcing activities as per no. 10 attached RSPO-addendum existing contract.pdf To review and revise contract on a yearly basis Auditor Conclusions: Closed Date of closure: March 28, 2013 Verified Document: The company provides addendum contract with their outsourced companies i.e. Felda Johor Bulkers Sdn. Bhd. and the transporter company. The addendum contract has included information about the

13 Page 13 of 17 relevant SCC requirement. SCCS Non-conformance of 08: Clause The sales document states the RSPO membership number instead of the RSPO certificate number. FIOP will use certification number in all docs once certified by TUV FIOP plan to use rubber stamp with RSPO certification number and train user how to use it. Auditor Conclusions: Closed Date of closure: March 28, 2013 Verified Document: The company provides revised RSPO SCCS Manual, there is now a statement that company will use certification number in all docs once certified by TUV Rheinland. SCCS Non-conformance of 08: Clause B.2.4 The company has not identified claimed product (SG/MB) in all daily production document/reports. Correction Information about selected Supply chain module is now recorded on daily production docs, such as: 1. Plant log sheet (Loc process for RSPO SG material form) 2. Tank stock (Quality Product tank form) FIOP will conduct a training how to used rubber stamp to stamp in all RSPO relevant logsheets Auditor Conclusions: Closed Date of closure: March 28, 2013 Verified Document: The company provided sample of daily production records that has included information about claimed products (SG/MB), such as Loc_process CCP RSPO SG materials form and Quality products Tank form. SCCS Non-conformance of 08: clause B.1.1/C.1.1. The company has not identified the location/process (critical control point) stages which have potential for mixing/contamination and provide information about the counter measure to control the mixing condition. Correction To provided document regarding identification about location/process of critical control point RSPO SG materials along company s production process. To review critical control point regarding mixing/contamination during management review conducted yearly Auditor Conclusions: Closed

14 Page 14 of 17 Date of closure: March 28, 2013 Verified Document: The company provide document of identification for all locations which has potential contamination between certified and non-certified material/product including information about counter measures to prevent contamination. There are 4 identified locations, such as - CPO and RBDPO Unloading Bay - Feed tank To Pre-treatment plant - Storage tank of CSRBDPO SG/CSRBDPLSG/CSRBDPS/CSRBDPL IV63 SG/CSRBDPMF IV45 SG/CSTFFH41 SG. - Blending Product of TFFH Conclusion and Approval for RSPO Supply Chain Certification The audit team has confirmed through the audit process that FELDA IFFCO Oil Products Sdn. Bhd. has established and maintains an effective system to ensure compliance with the RSPO Supply Chain Certification System requirements. TUV Rheinland Malaysia therefore approves the Supply Chain certification of this organization.

15 Page 15 of CERTIFIED ORGANISATION S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY 4.1 Date of Next Surveillance Visit The next surveillance visit is planned for March 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 FELDA IFFCO Oil Products Sdn Bhd. Signed on behalf of TUV Rheinland Indonesia. Zulkafli bin Yasman Product Head Date:.. Dian S. Soeminta Lead Auditor Date: April 02, 2013

16 Page 16 of 17 APPENDICES Appendix 1: Details of Supply Chain Certification Certificate Standard RSPO Supply Chain Certification Systems: November 2011 Certificate Registr. No Based on an audit according to the regulations stated in the RSPO Supply Chain Certification Systems: November 2011, and a signed contract, TUV Rheinland Malaysia Sdn. Bhd. herewith certifies that the facility(s) listed below are found to be in compliance with the RSPO Supply Chain Certification Systems, version: November This guarantees that the criteria for processing RSPO certified sustainable palm oil through one or more of the supply chain models as stated in the RSPO Supply Chain Certification Systems have been met. Certificate Holder Information Name: FELDA IFFCO Oil Products Sdn. Bhd. RSPO Member no.: Address of operation certified: Lot 82 Jalan Besi 2, Pasir Gudang Industrial Estate, 81700, Pasir Gudang, Johor, Malaysia Management Representative: Zulkafli Bin Yasman (Product Head) Contact no.: address: ZYasman@feldaiffco.com Scope & supply chain model assessed: Refining of crude palm oil and fractionation of refined, bleached and deodorized palm oil with the following supply chain option: Identity Preserved Segregation Mass Balance An audit was performed, Report No. SCC_ Proof has been furnished that the requirements according to RSPO Supply Chain Certification Systems: November 2011 are fulfilled. The due date for all future surveillance audits is 28 March. Validity: The certificate is valid from until Date of first RSPO Supply Chain certification:

17 Page 17 of 17 Appendix 2: List of Abbreviations CPO COC EMS FIOP FSC IP LEI MB MPOB P&C PKO PMF IV 45 QMS RBDPO RBDPL RBDPS RBDOL IV 63 RBSST IV II SCCS SG SFMC Crude Palm Oil Chain of Custody Environmental Management System FELDA IFFCO Oil Product Forest Stewardship Council Identify Preserve Mass Balance Malaysia Palm Oil Board Principles & Criteria Indonesian Ecolabel Institute (Lembaga Ecolabel Indonesia) Palm Kernel Oil Palm Mid Fraction IV 45 Quality Management System Refined Bleached Deodorized) (Refined Bleached Olein) (Refined Bleached Sterin) (Refined Bleached Olein IV 63) Refined Bleached Sterin IV II) Supply Chain Certification System Segregation Sustainable Forest Management Certification Appendix 3: Observations and Opportunities for Improvement No. Observations / Opportunities for Improvement 1 Training about E-Trace and SCCS requirement is not fully provided for all relevant SCCS PIC including outsourcing process. 2 The company has not defined the type of claim of incoming product (IP,SG or MB) on all documentation of incoming material