RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818385

RSPO PRINCIPLES & CRITERIA PUBLIC SUMMARY REPORT ANNUAL SURVEILLANCE ASSESSMENT 2

Guatemala EXTRACTORA DEL ATLANTICO S.A. Corporación Agro-Industrial del Caribe S.A 2016

Report prepared by: Mr. Merclin Isaac Lopez P. (Lead Assessor) Certification decision by: Mr. Muhammad Haris Bin Abdullah (Certifier) Certifying Office Control Union (Malaysia) Sdn. Bhd. B-3-1, Prima Klang Avenue, Jalan Kota KS/1, 41100 Klang, Selangor, Malaysia [email protected] Tel: +603-3377 1600 / 1700

Control Union Certifications Control Union Certifications is a member of the Control Union World Group - an international inspection and certification body. CUC performs assessments and certification in many agricultural based fields such as FSC, RSPO, and Organic production, Sustainable Textile Production, Organic Exchange, GLOBALGAP, HACCP, BRC, GMP and GTP.

CUC is accredited by the Dutch Council of Accreditation (RVA) on the European quality standard EN 45011 for the inspection and certification of CUC Organic program (according to the EU regulation 2092/91) and GLOBALGAP program. When requested a copy of the accreditation certificate can be obtained from CUC.

Control Union (Malaysia) Sdn Bhd is a registered affiliate member of RSPO and is a private limited company owned by the Control Union World Group based in Malaysia. Control Union (Malaysia) Sdn Bhd is authorized to conduct and issue certification on behalf of RSPO and Control Union Certifications. RSPO Membership Number 8-0025-06-000-00 RSPO Approval Date 12/01/2006 Affiliate Membership http://www.rspo.org/en/member/339

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818385

Table of Contents PART 1: SCOPE OF THE CERTIFICATION ASSESSMENT AUDIT ...... 4

1.1 COMPANY AND CONTACT DETAILS ...... 4 1.2 RSPO MEMBERSHIP & CERTIFICATION DETAILS ...... 4 1.3 ANNUAL SURVEILLANCE ASSESSMENT DETAILS ...... 4 1.4 ASSESSMENT TYPE ...... 4 1.5 LOCATION OF THE PALM OIL MILL ...... 4 1.6 PALM OIL MILL OUTPUT AND APPROXIMATE TONNAGES CERTIFIED ...... 4 1.7 GENERAL DESCRIPTION OF SUPPLY BASE ...... 5 1.7.1 Location of the Supply Base ...... 5 1.7.2 Statistics of the Supply Base and Estimated Tonnes of FFB produced per year ...... 5 1.7.3 Conservation and HCV Area (Ha) ...... 5 1.7.4 Percentage of Planted Oil Palm by different Age Ranges ...... 5 1.7.5 Calculation of the Number of Production Units (N) to Sample for the Mill ...... 5 1.8 PROGRESS OF ASSOCIATED SMALLHOLDERS OR OUT-GROWERS, IF APPLICABLE TO THIS ASSESSMENT ...... 6 1.9 LOCATION MAP FOR THIS CERTIFICATION UNIT (SEE APPENDIX 1) ...... 6 PART 2: PARTIAL CERTIFICATION ...... 6

2.1 MANAGEMENT STRUCTURE ...... 6 2.2 NON-COMPLIANCE IDENTIFIED WITH 2.1 ABOVE ...... 6 2.3 SUMMARY OF THE TIME BOUND PLAN ...... ERROR! BOOKMARK NOT DEFINED. 2.4 UN-CERTIFIED UNITS OR HOLDINGS ...... ERROR! BOOKMARK NOT DEFINED. 2.5 SUMMARY OF THE FINDINGS FOR PARTIAL CERTIFICATION ...... 9 2.6 PARTIAL CERTIFICATION AUDIT AGENDA ...... 10 PART 3: AUDIT PROCESS...... 10

3.1 ABOUT THE CERTIFICATION BODY ...... 10 3.2 AUDIT TEAM ...... 10 3.2.1 Qualifications of the Lead Auditor ...... 10 3.2.2 Qualifications of the Assessment Team ...... Error! Bookmark not defined. 3.3 AUDIT METHODOLOGY...... 12 3.3.1 General Overview ...... 12 3.3.2 Assessment agenda for this Audit ...... 13 PART 4 ASSESSMENT FINDINGS ...... 16

4.1 LEAD ASSESSOR’S SUMMARY AND RECOMMENDATION FOR CERTIFICATION ...... 16 4.2 SUMMARY OF THE FINDINGS BY PRINCIPLES AND CRITERIA ...... 16 Principle 1: Commitment to Transparency ...... 17 Principle 2: Compliance with Applicable Laws and Regulations ...... 18 Principle 3: Commitment to Long-Term Economic and Financial Viability ...... 19 Principle 4: Use of Appropriate Best Practices by Growers and Millers ...... 19 Principle 5: Environmental Responsibility and Conservation of Natural Resources and Biodiversity ...... 25 Principle 6: Responsible Consideration of Employees and of Individuals and Communities by Growers and Millers ...... 28 Principle 7: Responsible Development of New Plantings ...... 31 Principle 8: Commitment to Continuous Improvement in Key Areas of Activity ...... 31 4.3 SAMPLE CRITERIA APPLIED DURING ANNUAL SURVEILLANCES ONLY & NOT APPLICABLE FOR THE MAIN ASSESSMENT ...... ERROR! BOOKMARK NOT DEFINED. 4.4 NON-CONFORMITY RAISED DURING THIS AUDIT AND ANY FROM THE PREVIOUS YEAR, IF APPLICABLE ...... 32 4.4.1 Non-Conformities Identified during this Audit ...... 32 4.4.2 Non-Conformity Identified during the last ASA, not applicable for MA ...... 35 THE FOLLOWING NC’S WERE RAISED DURING THE LAST AUDIT AND THE STATUS WAS REVIEWED AS INDICATED BELOW. 35 4.4.2 Observations Raised During this Audit ...... 41 RSPOPC-SUM-REPORT.F01 (3.0) January 2016 Page 2 of 48 Control Union (Malaysia) Sdn. Bhd. B-3-1, Prima Klang Avenue, Jalan Kota KS/1,41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818385

4.5 ISSUES THAT WERE RAISED DURING THE STAKEHOLDER CONSULTATION, IF ANY ...... 42 PART 5: RSPO SUPPLY CHAIN CERTIFICATION ...... 42

5.1 POM INCLUDED IN THE SCOPE OF THE AUDIT ...... 42 5.2 CONFIRMATION OF THE COMPANY’S SUMMARY OF ANNUAL CERTIFIED VOLUME OF RSPO CERTIFIED PALM OIL AND PALM KERNEL OVER A SPECIFIED PERIOD ...... 42 5.3 SUMMARY REPORT INCLUDING A BRIEF DESCRIPTION OF THE SCOPE OF CERTIFICATION ...... 43 5.4 MONTHLY RECORDS OF CERTIFIED AND UNCERTIFIED FFB RECEIVED SINCE THE LAST AUDIT ...... 43 5.5 MONTHLY RECORDS OF CERTIFIED CPO AND PK PRODUCED SINCE THE LAST AUDIT .... ERROR! BOOKMARK NOT DEFINED. 5.6 RECORDS OF CERTIFIED CPO & PK SOLD UNDER GREENPLAM TO BUYERS SINCE THE LAST AUDIT, IF ANY...... 44 5.7 RECORDS OF CERTIFIED CPO & PK SOLD UNDER UTZ ETRACE TO BUYERS SINCE THE LAST AUDIT, IF ANY ...... 44 5.8 NON-CONFORMITIES IDENTIFIED DURING THIS AUDIT ...... 44 5.9 DESCRIPTION OF THE ORGANIZATIONAL MANAGEMENT SYSTEMS ...... 45 5.10 FINAL CERTIFICATION DECISION BY CONTROL UNION FOR THE RSPO SCCS AUDIT OF THE POM ...... 45 PART 6: CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY ...... 45

6.1 DATE OF NEXT ASA ...... 45 6.2 DATE FOR CLOSURE OF NON-CONFORMITIES ...... 45 6.3 SIGNING BY THE CLIENT ...... 45 6.4 SIGNING BY THE LEAD AUDITOR ...... 46 6.5 SIGNING BY THE CERTIFIER ...... 46 PART 7: APPENDICIES ...... 47

APPENDIX 1: LOCATION MAP FOR THIS CERTIFICATION UNIT ...... 47 FOR MALAYSIA ONLY. DELETE IF THIS AUDIT WAS DONE IN ANOTHER COUNTRY ..... ERROR! BOOKMARK NOT DEFINED. APPENDIX 2: LIST OF ABBREVIATIONS ...... ERROR! BOOKMARK NOT DEFINED. FOR INDONESIA. DELETE IF THIS AUDIT WAS DONE IN ANOTHER COUNTRY ...... ERROR! BOOKMARK NOT DEFINED. APPENDIX 2: LIST OF ABBREVIATIONS ...... ERROR! BOOKMARK NOT DEFINED.

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818385

PART 1: SCOPE OF THE CERTIFICATION ASSESSMENT AUDIT

1.1 Company and Contact Details Company Name: Corporacion Agro-Industrial del Caribe S.A. Business Address: Km. 273.5 Carretera al Atlántico, Finca Dublín, Morales, Izabal, Guatemala Contact Person: Mr. Leonel Eduardo Orellana // Mr. Jose Montenegro Office Telephone: (502) 2207-3025/ (502) 5951-8644/ (502) 5696-8773 E-Mail: [email protected] / [email protected] Web Site: www.agrocaribe.com / www.agroamerica.com Other Certifications Held: BASC; Raintforest Alliance; Unilever.

1.2 RSPO Membership & Certification Details RSPO Membership Number: 1-0069-08-000-00 Registered Client Name: AGROCARIBE Certificate Number: CU-RSPO-818385 Start Date Of Certificate: 29 September 2014 End Date Of Certificate: 28 September 2019 Date Of Original Certification: 29 September 2014 Scope: Certification of the Palm Oil Mill and Supply Bases Type Of Certification: Single site Duration Of Certificate: 5 Years from date of certification

1.3 Annual Surveillance Assessment Details Dates Of This Audit: July 18th to 22nd / 2016 Audit Number: ASA2

1.4 Assessment Type This is a RSPO Principles &Criteria Compliance assessment of the palm oil mill and its respective supply bases as listed in this report below. Under standards:  The Guatemala NI (GTNI 2015) of the RSPO Principles and Criteria was approved by the RSPO Secretariat on 10th December 2015  RSPO P&C Certification Systems 2007.  RSPO Supply Chain Standard (2014).  RSPO Supply Chain Certification Systems (2014).

1.5 Location of the Palm Oil Mill Name Mill Location GPS Reference Palm Oil Mill Capacity (POM) MT/Hour Address Longitude Latitude Km. 276 Carretera al Atlantico, Extractora del 60 88°33´35.32917” 15°34´58.65136 Camino Aldea Champona, Atlantico S.A. MT/hour E ” N Guatemala

1.6 Palm Oil Mill Output and Approximate Tonnages Certified Figures below are from:  Only from certified supply bases (Y/N). YES  Combining certified with uncertified supply bases (Y/N). NO  If the Mill is receiving FFB from uncertified supply bases outside the audit scope, such uncertified sources is highlighted under the following sections as seen applicable: RSPOPC-SUM-REPORT.F01 (3.0) January 2016 Page 4 of 48 Control Union (Malaysia) Sdn. Bhd. B-3-1, Prima Klang Avenue, Jalan Kota KS/1,41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818385

a. PART 1, Section 1.7 – General Description of Supply Base, b. PART 2: Partial Certification, Section 2.4 – Uncertified Units or Holdings, c. PART 5: RSPO Supply Chain Certification of this report Projected Production from the Actual Production for this Audit Year Projected 12 Months (MT) last 12 Months (MT) 2015/2016 (MT) Forecast Volume in this Report FFB CPO PK FFB CPO PK FFB CPO PK 268,398 60,597 4,443 274,759 63,778 12,363 281,260 66,802 12,657 Note : refer to part 5.2 for e-trace certified volume

1.7 General Description of Supply Base Agrocaribe S.A. has an Extractora del Atlantico S.A. palm oil mill and its supply base is own Agrocaribe plantation. The area of oil palm planted is 8,968.54 hectares. The mill processing capacity is 60 ton FFB per hour. The mill receives FFB only from own plantations.

1.7.1 Location of the Supply Base Oil Palm Location GPS reference Area Summary (Ha) OPP Plantation Name Address Longitude Latitude Total Mature OPP 1 Agrocaribe S.A. Km 273.5 Carretera al 88°33' 54.27” 15°33' 54.72" 10,142.55 8,968.62 Atlantico,́ Finca Dublin W N Morales Izabal, Guatemala TOTAL 10,142.55 8,968.62

1.7.2 Statistics of the Supply Base and Estimated Tonnes of FFB produced per year OPP Oil Palm Plantation Estimated FFB/Year (MT) Planting Years Cycle (Years) OPP 1 AgroCaribe 281,260 1999-2013 33-45 TOTAL 281,260

Only use data from 1.7.3 in the eTrace Summary 1.7.3 Conservation and HCV Area (Ha) * HCV part of OPP Oil Palm Plantation Conservation Area (Ha) HCV Area (Ha) Conservation OPP 1 AgroCaribe 45.04 45.04 Yes TOTAL 45.04 45.04 * Indicate if HCV area is part of the Conservation Area. If the HCV area is part of the Conservation Area, then “YES” otherwise, “No”

1.7.4 Percentage of Planted Oil Palm by different Age Ranges Planting Years by 5 year Ranges OPP 1996-2000 2001 -2005 2006 – 2010 2011 – 2013 Total OPP 1 31% 40% 16% 12% 100% (2,780 ha) (3,587 ha) (1,435 ha) (1,166.62 ha) (8,968.62 ha)

1.7.5 Calculation of the Number of Production Units (N) to Sample for the Mill N = 0.8√Y, where “Y” is the number of units, with the result always to be rounded “up” to the next whole integer. Where only a sample of the supply base is assessed, units not previously assessed, or assessed earlier in the certification program, are to be preferred over those more recently assessed For the Mill, how many units make up the production base? Owned estates (Y) N = 0.8√Y Smallholders (Z) N = 0.8√Z 1 1 0

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818385

Explanation as to the selection of estates sampled Based on the sample formula N = 0.8√Y, the only one own plantation was visited

1.8 Progress of associated Smallholders or Out-growers, if applicable to this assessment Progress of associated Smallholders or Out-growers towards Compliance with relevant Standards - should be in accordance to the 3 year implementation plan, if applicable to this assessment N/A. Not Applicable. There is no an associated smallholder or out grower declared in this audit. They work only with own plantation.

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

PART 2: PARTIAL CERTIFICATION The rules for partial certification allow organizations that have a majority holding in and / or management control of more than one autonomous company growing oil palm to certify individual management units and / or subsidiary companies subject to certain rules.

2.1 Management Structure Section Criteria Yes/No If “Yes” If “No” 2.1.1 Is the certified operation (POM and supply base as No Section 2 is Go to 2.1.2 detailed above) a stand-alone operation and there are N/A no other plantations or mills owned by the same company? 2.1.2 Is the certified operation part of a simple structure of Yes Go to 2.1.5 Go to 2.1.3 operations owned by one company? 2.1.3 Are there statements of the ultimate controlling - Go to 2.1.4 Go to 2.2.1 shareholders and directors in the managing agency company/companies: a. Explaining the legal relationship and the management arrangements with the subsidiary companies and / or with any operating groups? 2.1.4 b. A statement of commitment to complying with the - Go to 2.4 Go to 2.2.2 spirit of the RSPO for all companies and subsidiaries involved with the growing of oil palm and for the production of palm oil? 2.1.5 Is there a time bound plan in place for all subsidiaries, Yes Go to 2.3 2.2.3 estates and palm oil mills? 2.1.6 Is the parent company or one of its majority owned and / Yes or managed subsidiaries a member of RSPO.

2.2 Non-compliance Identified with 2.1 Above Section Non-compliance findings NC raised Category 2.2.1 There is no explanation as to the company’s structure and therefore it - Major Is not possible to conduct an effective audit against the rules for partial certification. 2.2.2 There is no statement of commitment to complying with the spirit of - Major the RSPO for all companies within the company structure. 2.2.3 There is no time bound plan in place for the certification for all - Major subsidiaries, estates and mills. 2.2.4 No applicable membership of the RSPO. - Major

2.3 Summary of the Time Bound Plan Section Requirement Findings and any action required Compliance

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818385

2.3.1 Does the plan Yes, the plan includes subsidiaries belonging to the group, 1 mill Yes include all AGROFRANCIA S.A and it own plantation as supply base. subsidiaries, estates There is a forecast to have the mill and plantation certified in and mills? 2016. “ Compliance Partial Certification Program” record. 2.3.2 Is the time bound The time bound plan is appropriate, as Agrofrancia will have Yes plan challenging? RSPO initial audit in December 2016.  Age of plantations.  Location.  Mill development.  Infrastructure.  Compliance with applicable law. 2.3.3 Have there been The date for main audit is change of November 2015 to Yes any changes since December 2016; because the POM has a process of the last audit? Are Remediation and Compensation with RSPO and this moment they justified? they are not answer. 2.3.4 If there have been The date for main audit is change of November 2015 to Yes changes, what December 2016; because the POM has a process of circumstances have Remediation and Compensation with RSPO and this moment occurred? they are not answer. 2.3.5 Have there been There have been no comments from stakeholder Yes any stakeholder comments? 2.3.6 Have there been No Yes any newly acquired subsidiaries? 2.3.7 Have there been The plan is to developed smoothly Yes any isolated lapses in the implementation of the plan? 2.3.8 Has there been any The plan is to developed smoothly Yes systematic failure to proceed with the implementation of the plan? 2.3.9 General statement The advance of the project is adjusted to proposed timetable. Yes as to progress made The project to present for main audit only waiting approbation since the last audit? of RSPO (Remediation and compensation procedure). It has been contacted to Control Union to Agrofrancia initial audit in December 2016

2.4 Un-Certified Units or Holdings NOTE: Companies may demonstrate compliance by clear evidence of a self-audit (i.e. an internal audit for all subsidiaries, estates and Palm Oil Mills) Section Requirement Findings and any action required Compliance 2.4.1 Did the company Audit in P&C RSPO 2016 has made by ATF Consulter (Colombian Yes conduct an internal Company), checklist and the Report to General Management audit? If so, has a were evidenced. positive assurance statement been Agrocaribe has conducted an internal audit on february 2015 for

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818385

produced? Agrofrancia including RSPO and Raintforest Alliance programs. This audit was conducted by Mr. Pedro Cerrate (Agropalma). All RSPO Principles & Criteria are evaluated.

Is evidence that the quality coordinator of Agrofrancia has made the RSPO lead auditor course dictated by Proforest. 2.4.2 No replacement Agrocaribe has done Historical Analysis of Land Use on 2011 for Yes after dates defined Agrofrancia. in NIs Criterion 7.3 Using through orthophotos from 2002 for all estates, it analysis of: includes also affidavits by neighbours before a notary public  Primary declaring the use land and confirming that for more than 10 forest. years the use of the land has been for agriculture activities as  Any area rubber, tomatoes, even palm oil and banana crops, also land identified as dedicated to livestock. containing Local environmental company conducted environmental Impact High Assessment Studies on November 2011 for Agrofrancia POM. Conservation Values (HCVs). Historical Analysis of Land Use concluded primary forest has not  Any area been replaced from before 2005 and not HCV´s in place. required to maintain or enhance HCVs in accordance with RSPO criterion 7.3. 2.4.3 Any new plantings The Social and Environmental Impact Assessment conducted by Yes since January 1st BIOTERRA in February 2014 is evidenced. This assessment 2010 must comply includes all the requirements established for the new plantings, with the RSPO New the participation of the stakeholders and the ecological analysis Plantings Procedure. of the area where the new plantings are located.

The company has a New Plantings Procedure. The areas for the new plantings have been assessed to analyze possible HCV presence. The assessment conducted by BIOTERRA concluded that there are no HCV in the lands where the new plantings will be located. The organization has made the cartographic analysis to evaluate the change in land use - related to new plantings - indicating that it did not affect natural forests or environmentally sensitive areas. The areas of new plantings are transitions to other crops and areas for agricultural use. Evidence of the planting dates in the EISA document as well as in the Staff Records of the Agronomy Department. Although no HCVs have been identified in the areas of new plantings, strategies are established for the management of biodiversity in the margins of water sources and patches of fragmented forests in the surrounding areas of influence to crops, such as prohibiting hunting and illegal logging. In the EISA document there is evidence of the consultation with the communities regarding the positive and negative impacts caused by the new plantings. RSPOPC-SUM-REPORT.F01 (3.0) January 2016 Page 8 of 48 Control Union (Malaysia) Sdn. Bhd. B-3-1, Prima Klang Avenue, Jalan Kota KS/1,41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818385

2.4.4 Any Land conflicts There are not land conflicts evidenced. Yes are being resolved through a mutually agreed process, e.g. RSPO Grievance procedure or Dispute Settlement Facility, in accordance with RSPO criteria 6.4, 7.5 and 7.6. 2.4.5 Any Labor disputes Labour disputes are not evidenced Yes are being resolved through a mutually agreed process, in accordance with RSPO criterion 6.3. 2.4.6 Any Legal non- Disputes in legal compliance are not evidenced Yes compliance is being resolved in accordance with the legal requirements, with reference to RSPO criteria 2.1 and 2.2.

TIME BOUNDP PLAN FORECAST FOR RSPO CERTIFICATION OF ALL PALM OIL MILLS & SUPPLY BASES Supply Bases (estates, Targeted RSPO Current Certification Palm Oil Mill Country plantations, associations) Certification Year Status as per this Audit Agrofrancia S.A. Guatemala Agrofrancia S.A. 2016 Pending

With reference to time bound plan, the following issues were reviewed openly with the Control Union audit team during the assessment and which may be in conflict with the rules for partial certification, if applicable Name of Mill or Plantation *Area of concern (See examples below) N.A. Include any known concerns, media reports and major issues both present and from the past covering, for example:  Replacement of primary forest or any area containing HCV’s since November 2005.  Evidence of non-compliance with the law  Legal issues  Compensation payments  Social relations  Burning  Labor disputes

2.5 Summary of the findings for Partial Certification The audit team assessed compliance with the above requirements during this audit. Failure to address any non- compliance identified may lead to certification suspension. Agrofrancia S.A. is a registered company on 2010 and holding to Agrocaribe S.A. POM Agrofrancia started activities on July 2012. The company has made the decision to include Agrofrancia Mill into certification by year 2015 from now to RSPOPC-SUM-REPORT.F01 (3.0) January 2016 Page 9 of 48 Control Union (Malaysia) Sdn. Bhd. B-3-1, Prima Klang Avenue, Jalan Kota KS/1,41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818385

adhere to the rules of partial certification. Land conflicts, labour disputes and none legal non-compliance was not noted. The continued implementation of RSPO requirements is in place. Overall findings are satisfactory It is scheduled main audit in December 2016 to certification RSPO

2.6 Partial Certification Audit Agenda Date Location Agenda 22/07/2016 Agrocaribe S.A. Partial Certification review. Office Izabal

PART 3: AUDIT PROCESS

3.1 About the Certification Body Control Union Certifications is a member of the Control Union World Group – an international inspection and certification body. CUC performs Audits and certification in many agricultural based fields such as FSC, RSPO, and Organic production, Sustainable Textile Production, Organic Exchange, GLOBALGAP, HACCP, BRC, GMP and GTP.

CUC is accredited by the Dutch Council of Accreditation (RVA) on the European quality standard EN 45011 for the inspection and certification of CUC Organic program (according to the EU regulation 2092/91) and EUREPGAP program. When requested a copy of the accreditation certificate can be obtained from CUC.

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

3.2 Audit Team Lead auditor: Mr. Merclin Isaac López Poveda Team member 1: Mrs. Adriana Tenjo Fuentes Team member 2: Mr. Boris Villareal Morales

3.2.1 Qualifications of the Lead Auditor Requirement Qualifications A minimum of post high school (post-secondary Agronomic Engineer 2001 with more than 13 years school) training in either agriculture/forestry, working experience in plantation environmental science or social sciences; Experience in audit RSPO, Global Gap, Organic farming auditing. At least 5 years professional experience in area of More than 10 years working experience in plantation. work relevant to the assessment (e.g., palm oil Involved in RSPO auditing since 2013. management; agriculture/forestry; ecology; social science); Experience as auditor in various standards: Global Gap, SA8000, Rainforest Alliance, Organic production Standards for Colombia, Europe, Japan and the United States (USDA-NOP), RSPO (Roundtable on Sustainable Palm Oil), Bonsucro and Phillip Morris International (GAP and ALP-Agriculture Labor Practices). Training in the practical application of the RSPO Successfully completed RSPO Lead Auditor Training in criteria, and RSPO certification systems; February 2014. Successfully completed RSPO SCC Training Course in October 2014. Involved in RSPO assessment since 2013. Member of CUC RSPO audit team. Involved in audits conducted in Colombia. RSPOPC-SUM-REPORT.F01 (3.0) January 2016 Page 10 of 48 Control Union (Malaysia) Sdn. Bhd. B-3-1, Prima Klang Avenue, Jalan Kota KS/1,41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818385

Successfully completion of an ISO 9000:19011 lead Successfully completed ISO 9001:2008 lead auditor course auditors course; in June 2012. Training in the practical application of RSPO Successfully completed RSPO Lead Auditor Training in certification systems. February 2014. Successfully completed RSPO SCC Training Course in October 2014. Involved in RSPO assessment since 2013. Member of CUC RSPO audit team. Involved in audits conducted in Colombia. A supervised period of training in practical auditing Involved in RSPO assessment since 2013. Member of CUC against the RSPO criteria or similar sustainability RSPO audit team. Involved in audits conducted in standards, with a minimum of 15 days audit Colombia. experience and at least 3 audits at different organizations. RSPO endorsed lead auditors course. Successfully completed RSPO Lead Auditor Training in February 2014. Signed code of conduct. Signed with CUC General knowledge of:  RSPO P&C standards. Sound knowledge of the P&Cs and Local Interpretations.  CUC organizational structure. Sound understanding and has prepared training documents for others.  CUC quality systems. Sound understanding and has prepared training documents for others.  Lead auditor role. ISO 9001. Prepared an ISO 19011 training course and conducts internal training on auditing techniques.  Report writing. Extensive experience in report writing.  Stakeholder consultation. The process and need for this is fully understood.  Certification decision process. Full understanding.  RSPO SCCS program manual. Full understanding.  CUC filing systems. Full understanding.  Correct use of RSPO trademarks. Full understanding.  History and objectives of RSPO. Full understanding.  CV available. Upon request. Completion of CUC RSPO lead auditor training. Completed & Passed RSPO Lead Auditor training in 2015.

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

Fluent in main local Adriana Tenjo Fuentes Fluent in Spanish local language (Colombian languages and English. citizen) and able to understand English. Boris Villareal Morales Fluent in Spanish local language (Colombian citizen) and able to understand English.

Field working Adriana Tenjo Fuentes Social Specialist. experience in the palm Business administrator. oil sector, or a Experience under environmental management demonstrable System and implementing environmental RSPO equivalent. criteria in oil palm company. Knowledge in economics, labour and laws of Colombia. Boris Villareal Morales Colombian Biologist. Environmental Specialist.

Good agricultural Adriana Tenjo Fuentes Social Specialist.

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818385

practices (GAP), Business administrator. integrated pest Experience under environmental management management (IPM), System and implementing environmental RSPO pesticide and fertilizer criteria in oil palm company. use. Knowledge in economics, labour and laws of Colombia. Boris Villareal Morales Colombian Biologist. Environmental Specialist.

Health and Safety Adriana Tenjo Fuentes Social Specialist. auditing on the farm Business administrator. and in processing Experience under environmental management facilities. (For example System and implementing environmental RSPO OHSAS 18001 or criteria in oil palm company. occupational. Health Knowledge in economics, labour and laws of and safety assurance Colombia. system). Boris Villareal Morales Colombian Biologist. Environmental Specialist.

Workers welfare issues Adriana Tenjo Fuentes Social Specialist. and social auditing Business administrator. experience. (For Experience under environmental management example with SA8000 or System and implementing environmental RSPO related social or ethical criteria in oil palm company. accountability codes). Knowledge in economics, labour and laws of Colombia. Boris Villareal Morales Colombian Biologist. Environmental Specialist.

Environmental and Adriana Tenjo Fuentes Social Specialist. ecological auditing. (For Business administrator. example experience Experience under environmental management with organic agriculture, System and implementing environmental RSPO ISO 14001 or criteria in oil palm company. environmental Knowledge in economics, labour and laws of management systems). Colombia. Boris Villareal Morales Colombian Biologist. Environmental expert in wildlife conservation, with extended research in tropical rare and endangered species as birds, reptiles, apes as well as tropical flora. He is trained in integrated quality management systems evaluations such as ISO14000, BPM among others

Economic issues. Adriana Tenjo Fuentes Social Specialist. Business administrator. Experience under environmental management System and implementing environmental RSPO criteria in oil palm company. Knowledge in economics, labour and laws of Colombia. Boris Villareal Colombian Biologist. Environmental Specialist.

3.3 Audit Methodology 3.3.1 General Overview The Audit was carried out in conformity with the procedures as laid down in the CUC Procedure Manual and the RSPO Program Manual for the auditors and Certifier. During the Audit the qualified CUC auditors used the RSPO RSPOPC-SUM-REPORT.F01 (3.0) January 2016 Page 12 of 48 Control Union (Malaysia) Sdn. Bhd. B-3-1, Prima Klang Avenue, Jalan Kota KS/1,41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

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standard as endorsed for the country in which the audit took place and recorded their findings.

Workers and local communities were interviewed and evidence sought to confirm ongoing compliance to include:  Chemical stores. Storage, MSDS leaflets, Herbicide mixing areas, PPE, Ventilation, Security.  Field inspections. Herbicide application programs. Harvesting sites and efficiency. Fertilizing operations. SOP’s. Soil maps. Land preparation. Ground cover. IPM. First aiders and boxes. Ground cover. Soil erosion. Field observations of all operations.  Worker interviews. OSH. Sexual, religious, racial harassment. Pay and contracts. Child labor. First aid. Awareness.  Re-planting sites. Zero burn.  HCV’s. Identification. Management plans. Environmental Impact Assessments. Implementation.  Riparian zones. Width. Current and future management. Non maintenance regimes.  Water management. Water courses. Water monitoring.  Road maintenance. Run off.  Social amenities. Social Impact Audits.  Local communities. Contributions made. Employment opportunities. Social impacts. Complaints procedures.  Workshops. Oil traps. Safe working environment. PPE. Diesel tanks. Environmental waste management.  Line sites. Interviews with householders. Inspection of water discharge points. Water improvement plans. Waste disposal.  Documentation review.

The Palm Oil Mill audit verification included the following activities:  Mill and workshop inspections. Documentation review & worker interviews.  Mill. SOP’s. Safe working environment. Gen sets. Walk ways. Signs. EFB. POME treatment. Emissions. Mass balance. Diesel tanks. PPE. Fire extinguishers. First aiders and boxes. Fuel and water usage.  OSH. Training. Management structure. First aiders.  Full document review. Completion of the checklist. Review and documentation of evidence. All aspects of RSPO P&C’s applicable.  Worker interviews. OSH. Sexual, religious, racial harassment. Pay and contracts.  Compliance against the RSPO SCCS certification scheme.

Verification: Verification of implementation was done through field observations, workshop and chemical store inspections, worker and community interviews and mill inspections as summarized above.

3.3.2 Assessment agenda for this Audit Date Location Main activities 17th July Colombia / Travel day, from Colombia Country to Guatemala Country 2016 Guatemala (Sunday) 18th July POM Extractora del 06:00 – 9:00 Travelling From Guatemala City to Ibazal zone 2016 Atlántico (Monday) Kilometro 273.5 9:30 – 10:30: Opening Meeting carretera al Chaired by the audit team leader Atlántico, Finca  Introduction by team leader Dublín, Morales,  Presentation by respective managers Izabal Presentation of Palm Oil Mill source of FFB by respective managers

11:00 – 17:00: Supply Chain Certification Assessment of the POM (RSPO SCCS)

 Demonstration of legal entity [operational unit]

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 Roles and responsibility  Document & records [procedures/manual/SOP]  Internal audit procedure & records  Records of purchase - RSPO certified product Mr. Merclin López  Records of sales – RSPO certified products  Shipping & confirmation announcement  RSPO logos & claims

11:00 – 17:00: RSPO P&C Document Review Mill inspection  Workshops  Stores

 POM application

 Document review

Mill operations

 Worker interviews

 Housing

 Mr. Merclin López/ Medical Mrs. Adriana Tenjo/  Schools Mr. Boris Villarreal  Local communities  Environmental

12:00 -13:00: Lunch & Rest 19th July Finca Dublín, 08:00 – 12:00: Field Visit by Respective Auditors 2016 Morales, Izabal (Tuesday) 13:00 – 17:00pm RSPO P&C Document Review

 Best agricultural practices  Manuring, Spraying, Harvesting,  HCV / Conservation Area Mr. Merclin López/  Safety and Health Mrs. Adriana Tenjo/  Waste Management / Environment Mr. Boris Villarreal  Legal compliance / boundary  Chemical / Pesticide / Fertilizer Stores  Document review [EIA, SIA, CIP, Business Plan]  Complaint mechanism / Request & respond  Worker interviews / Human Rights / Transparency  Worker’s facilities (housing, pay, etc)  Stakeholder consultation if required

12:00pm – 13:00: Lunch & Rest 20th July 08:00 – 12:00: Field Visit by Respective Auditors 2016 Finca Dublín, Morales, Izabal 13:00 – 17:00 RSPO P&C Document Review (Wednesday)  Best agricultural practices  Manuring, Spraying, Harvesting,  HCV / Conservation Area All auditors  Safety and Health  Waste Management / Environment  Legal compliance / boundary RSPOPC-SUM-REPORT.F01 (3.0) January 2016 Page 14 of 48 Control Union (Malaysia) Sdn. Bhd. B-3-1, Prima Klang Avenue, Jalan Kota KS/1,41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

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 Chemical / Pesticide / Fertilizer Stores  Document review [EIA, SIA, CIP, Business Plan]  Complaint mechanism / Request & respond  Worker interviews / Human Rights / Transparency  Worker’s facilities (housing, pay, etc)  Stakeholder consultation if required

12:00 – 13:00: Lunch & Rest 21th July Finca Dublín, 08:00 – 12:00: Field Visit by Respective Auditors 2016 Morales, Izabal (Thursday) 13:00 – 17:00 RSPO P&C Document Review

 Best agricultural practices  Manuring, Spraying, Harvesting, All auditors  HCV / Conservation Area  Safety and Health  Waste Management / Environment  Legal compliance / boundary  Chemical / Pesticide / Fertilizer Stores  Document review [EIA, SIA, CIP, Business Plan]  Complaint mechanism / Request & respond  Worker interviews / Human Rights / Transparency  Worker’s facilities (housing, pay, etc)  Stakeholder consultation if required

12:00 – 13:00: Lunch & Rest 14:00 -16:00 : Stakeholders Consultation  Will lead by Mr. Merclin López

22th July POM Extractora del 07:00am – 09:00: Partial Certification Review with client 2016 Atlántico representatives (Friday)  Mr. Merclin López with client representatives

09:00 -11:00 Auditor Discussion 11:00 -12:00: Preparation for Closing Meeting Additional field visits and meetings with managers as necessary 13:00am -14:00: Closing Meeting Chaired by the audit team leader  Welcome and introduction by the team leader  Presentation of findings by the audit team  Questions and answers  Final summary by team leader End of Assessment 12:00pm – 13:00: Lunch & Rest 15:00 onwards: Travel to Guatemala City 23th July Guatemala / Travel day, from Guatemala Country to Colombia Country 2016 Colombia (Saturday)

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PART 4 ASSESSMENT FINDINGS

4.1 Lead Assessor’s Summary and Recommendation for Certification

The mill and supply bases visited (as per the above Tables 1.5 and 1.7.1) and were assessed at field, office, facilities, stores and a document review was carried out in accordance to the RSPO principles and criteria.

Specific evidence was recorded for estates and mill. Interviews with Estate Managers and supervisors, Mill Manager, financial manager, Agronomic director took place in both formal and informal environments Also, worker interviews were conducted at the supply base and the mill. The management is highly committed in maintaining the RSPO system by adopting to continuous improvement programs.

There was no complaint or feedback received during the audit or during the field assessment when interviewing with the external stakeholders. The partial certification rules are applicable.

There is a commitment from the management for continuous improvement. There is a Certification Department fully involved in supporting the management teams in fulfilling the requirements of the RSPO P&C, SCCS and internal control system whereby sustainability management systems are working correctly. Also, it has BASC certification.

The mill is fully verified for RSPO SCCS system verification and it is found to be in full compliance. See PART 5 below. Summary of Non-Conformance and Current Status Please provide summary with reference to the non-conformance annex table

The following NC’s were raised for this audit:

4.7.2. Major. Documentation of the hazard assessment matrix of health and safety for organization Agrocaribe was evidenced. However, there are evidenced within this matrix, some specific activities; including the Tractorista, Pastor and Field supervisor.

4.7.4. Major. Evidence of the Acts Book of the Hygiene and Safety Committee according to the Record No 05- 2014 with the stamp of the Labor and Social Prevision Ministry. In the book, there is evidence of regular meetings of the committee. There is no evidence that the Committee analyzes and prepares the action plans for the accidents. Also, there is no evidence of compliance of the commitments settled in the previous meetings.

4.7.7. Minor. Occupational injuries shall be recorded using Lost Time Accident (LTA) metrics was not evidenced.

It is therefore the recommendation of the lead assessor that:

 A certificate of compliance is maintained.

Signed:

Name: Merclin Isaac Lopez P. Date: 22 09 2016

4.2 Summary of the findings by Principles and Criteria

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 Over the 5 year period of the life of the certificate, there will be 4 annual surveillance audits  Identified Non-Conformities and noteworthy Positive and Negative Observations.  The RSPO require that this report contain findings by each principle and some example criteria. Please see table below.

Principle 1: Commitment to Transparency Criterion by The company has established a mechanism to provide information to any Audit third part interested. Thus far, requesting has not been done by any third part. Documents are available upon public request in exception for confidential financial documentation. Records of requesting and it feedback will be kept by 3 years. Summary

The code of ethical conduct and integrity in all operations and transactions of the company is documented and communicated to all levels of the workforce and operations.

ASA2 1.1 The document called Policy requests, complaints, claims and suggestions of our stakeholders (Revision: 2; Number: 24; Date: September 2015) was evidenced.

The specific timeframe to respond to requests for information is defined as two week and the responsible person is Corporative Manager.

A free telephone line (Guatemala number 23780188), e-mail and physical mailboxes are the measures taken by the company to receive requests. Records of requesting and it feedback will be kept by 3 years. ASA2 1.2 Legal, environment, social, OSH and continues improvement plan documents are considered as publicly available upon request. Also, the company maintains a Agrocaribe´s Standard Operating Manual, which mention what document is confidential to company such as financial and company strategy, intellectual property and others issue is think to give negative effect to company.

During the audit, there was evidence that the company has the relevant information and the required documents for each case. These are available:  Documentation of land occupancy (Land titles, deed, public records, freedom certificates and tradition certificates). 171 Land titles were evidenced.  Company registration Corporación Agro-Industrial del Caribe S.A. No. 313726/753/240 4th June 2009.  Company registration Extractora del Caribe S.A. No. 313573/600/240. 3th June 2009.  Health and Industrial Safety Plans for Company.  Sanitary License for food production areas in Extractora del Atlántico POM and Fields: Issued by the Ministry of Health, Directorate of the Izabal area, License N. 07-2013, Register N. 07-2013, issued on August 16, 2013.  Occupational health & safety program.  Impact assessments and environmental and social management plans (including permits, and environmental licenses required by law).  Pollution prevention plans.  Detailed data on Claims and Complaints (Forms and Procedures).  Continuous improvement plan.

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 Internal Labor Regulations, Agro-Caribe: Issued by Ministry of Labor.  Hiring policies and fruit and oil marketing policies with specific conditions.  Documents that enable traceability of inputs and outputs (bills, kardex, records)  Hiring manuals ASA2 1.3 Annexed to Internal Work Regulations (IWR) is documented “Code of integrity and ethical conduct”, which contains a written commitment of the company to integrity and ethical conduct in all its operations and transactions policy, which is delivered to the income (new contract) all employees of the organization.

This policy is communicated to all levels of the workforce and operations. Principle 2: Compliance with Applicable Laws and Regulations Criterion by The mill and estates comply with all applicable local, national and Audit Summary international laws. The company complied with relevant legal requirements during the audit. ASA2 2.1 The mill and estates have demonstrated compliance to all applicable local, national and international laws. Legal ownership of land and its land use is clearly demonstrated through the respective land titles. Boundaries have been clearly demarcated. There have been no land disputes or claims involving the mill and estates. No evidence of customary rights or conflicts on this matter. All applicable permits and licenses for the mill and estates are clearly displayed. Records of expiry of these permits and licenses are kept in the office and monitored to ensure that they are renewed well before the expiry dates to ensure no lapses in the compliance to Guatemala government laws and regulations.

The company has a document ““Guatemalan applicable law in accordance with the criteria of the RSPO standard for the cultivation of palm oil” date: November 2015, which contains a la list of the applicable regulations that is revised twice a year (each semester).

There is a legal compliance matrix and a law updates procedure. The digital file called Matrix legal requirements AGROCARIBE (Palm oil cultivation and POM), Version 2 were evidenced. It is detailed all applicable legal requirements and their level of compliance.

The updates of the changes in the law are known through the direct assistance of an external lawyer (hired consultant) by e-mail to the responsible of each area. Evidence of e-mail with update reports in the e-mail of Mrs. Maria Jose Interiano (Certifications and Environment Manager). ASA2 2.2 The company has demonstrated legal ownership of the land of 10142.55 hectares through 171 certificates issued by the Property General Registry (Guatemala) where the land of the farms, the location and the registry status are certified. All this documents are legal and signed by the notary and lawyer Ms. Eva Lorena Estrada Arana.

There were well-defined limits in every farm; these were defined by roads,

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fences with barbed wire and landforms (rivers and creeks). Also in the POM.

No conflicts regarding this subject were evidenced. No evidence of processes or dispute agreements regarding any existing conflict. Extractora del Atlántico S.A. POM is certified under standard: Business Alliance for Secure Commerce –BASC. The policy is focused on reasonable and appropriate business practices to prevent abuse of the legal structures of the company by asset launderers and terrorism financers. Also, it prohibits the involvement of mercenaries and para-militaries in their operations and prohibits extra-judicial intimidation and harassment by contracted security forces. ASA2 2.3 Acts N. 03-2023 and 04-2013 were evidenced, dated February 2013, regarding the meeting with local communities to consult about customary rights at Puerto Barrios and Morales municipalities, Izabal Department. No customary rights were identified as a result of the meetings.

No conflicts regarding this subject were evidenced. No evidence of processes or dispute agreements regarding any existing conflict. Principle 3: Commitment to Long-Term Economic and Financial Viability Criterion by An Agrocaribe Business Plan was evidenced. Audit Summary The company has not planned for replanting, as it is projected from the year 2020 onwards. ASA2 3.1 The Agrocaribe Business Plan was evidenced. This document was reviewed and signed by the General Manager, Mr. Jose Roberto Montenegro.

A detailed breakdown of costing and estimated profits are filed and captured in the Financial and Operating Summary with projections from 2013 until 2017 on yearly basis, which has included direct and indirect cost with sub- description of each activity and requirement to sustain the business. Regarding the POM this includes CPO production, Palm Kernel production, forecast price of CPO & PK, the OER (Oil Extraction Rate) and KER (Kernel Extraction Rate), profit and operational cost. The projections of the business plan are reviewed monthly at board meeting and are considered indicators like IRR, EBITDA, among others. Financial control of the entire project is conducted and the guidelines are provided for the execution.

The company has not planned for replanting, as it is projected from the year 2020 onwards. Principle 4: Use of Appropriate Best Practices by Growers and Millers Criterion by The mills and estate have a complete set of SOP and there was evidence that Audit these have been implemented and continuously monitored. Soil fertility is being maintained in the fields and erosion prevention is constantly carried out. Summary IPM is being implemented in all the estates and the use of chemicals are in accordance with the regulations.

There is evidence of an Industrial Safety and Occupational Health Policy included in the document named: Industrial Safety and Occupational Health

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Plan applicable for Corporación Agro- Industrial del Caribe.

Documentation of the hazard assessment matrix of health and safety for organization Agrocaribe was evidenced. However, there are evidenced within this matrix, some specific activities; including the Tractorista, Pastor and Field supervisor. A major NC was raised.

Evidence of the Acts Book of the Hygiene and Safety Committee according to the Record No 05-2014 with the stamp of the Labor and Social Prevision Ministry. In the book, there is evidence of regular meetings of the committee. There is no evidence that the Committee analyzes and prepares the action plans for the accidents. Also, there is no evidence of compliance of the commitments settled in the previous meetings. A major NC was raised. The company has procedures for accidents and emergencies. The training of all personnel is performed on these issues. Accident drills are performed with evacuation of people injured. First aid training for members of the emergency brigade is evidenced. Likewise, there is evidence of the process of worker’s induction and re induction trainings on topics such as first aid, safe working and other issues related to occupational health Occupational injuries shall be recorded using Lost Time Accident (LTA) metrics was not evidenced. A minor NC was raised. Trainings are conducted for all workers and contractors as per the Annual Training Plan. ASA2 4.1 The company has Standard Operating Procedures (SOPs) for the mil and the farms. These are identified with consecutive codes and are adjusted to the ISO 9000 methodology.

The procedures are available in place and regularly updated. Some procedures were checked: Incoming FFB inspection procedure; Traceability check points for palm products and Laboratory procedure, sterilizer temperature and time records, steam flow record, water usage records, chemical test records, process control general sterilization and threshing data, mill losses on FFB and also boiler water control.

The verification procedure of the implementation corresponds to the work of the field supervisors and mill supervisors that assess the work of the process. The monitoring of the procedure is done through the records of each activity. The field supervisor regularly presents reports to the Agricultural Department including the assessments and results. At the mill, supervisors constantly monitor the process and any deviation can interrupt the production process. ASA2 4.2 . There is evidence of document called INTEGRATED CROP MANAGEMENT, Code MIC-01 second edition, dated 01/11/2014. In this document, all agricultural practices that the company AGROCARIBE conducts are defined. Soil and leaf samplings, fertilization methodology, among others are established.

Fertilization records kept by farm fertilizer are observed and they contain detail information regarding the applied product, the name of the employee performing the work, the area, the applied dose, total amount, among other things. Registration of Fertilizer Application (2016) includes products: SAM, DAP, Kieserita, Si and NAM.

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There is evidence of a foliar sampling carried out during the current year. 391 leaf samples were taken and sent to the laboratory Costa Rica CATIE (Tropical Agricultural Research and Higher Education), sending dated 2016.

There is also evidence of the results of chemical analysis of soil 2014, with parameters evaluated: carbon, nitrogen, boron, sulfur, phosphorus, zinc, copper, iron, manganese, the carbon nitrogen ratio, and electrical conductivity.

The nutrient recycling strategy considers the return of pruning leaves, spine, fibers and the resulting sludge in the oxidation pools of the Palm Oil Mill (POM). ASA2 4.3 There are no peat soils. Soil maps have been developed for farms with areas showing location of production constraints such as strips of sand and high water table (floodplains). The maps are in the office of the Head of Agricultural Services and on the billboards of the visited farms.

Soil erosion is prevented through the following methods: - The planting of cover crops as Pueraria. - Implementation of the grain mill sub-products, providing ground cover to prevent erosion (from wind and water) and reducing the use of herbicides. These practices ensure that the soil is always kept covered.

There is a 2016 Budget approved by the Board for the maintenance of the internal roads and some externals as well. There is evidence of a road maintenance program with an approved budget by the General Management. Due to weather conditions, the work is concentrated in the period of lower rainfall (rain). Plan activities are divided into three categories: internal roads, external roads and entrance to the Palm Oil Mill (POM). Furthermore, it has the length of each road and the estimate of material required for maintenance. ASA2 4.4 The AGROCARIBE organization has a Water Management Plan that includes the efficient use of water for the labors of Palm Oil extraction. In installations for the plantations using appropriate treatment systems for domestic wastewater was evidenced. And mechanisms for the treatment of effluent washing of pesticide residues by "biological beds" or BIODEP. Similarly, the provision of potable water to all plantation workers and extraction plant evidenced by storage tanks has the proper environmental sanitation.

The physic-chemical analysis of industrial wastewater of POM, prepared in November 2015 by the company ECOQUIMSA, which has Accreditation COGUANOR NTG Standard ISO / IEC 17025, under the OGA-LE-051-13 record was evidenced. The data from the Biochemical Oxygen Demand BOD in the process output are 32.000 mg/L; in the facultative pond: 10,800 mg/L and at the exit of the Wastewater Treatment System Industry (in spanish:STARI) 10,400 mg/L.

The company has implemented a system of Fito depuration of effluents and sludge for the purpose of applies them as fertigation in nearby plantations. In the filter channels Phyto depuration, data DBO are: Filter #1: 4.900 mg / L, Filter #2: 1.550 mg / L, Filter #4: 1.200 mg / L Filter #5:

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15.560 mg / L. Points were taken at 1.5 km and 2.5 km from the filter 5 with values of 780 mg / L and 720 mg / L, this values that show a removal efficiency of 95.1% for BOD, in accordance with the provisions of the Government Decision 236/2006. The monitoring water consumption in the extraction plant is evidenced. The data is the following: 2014: 1,691 m3 / Tons RFF processed. 2015: 1,501 m3 / Tons RFF processed. 2016 (to date): 1,730 m3 / Tons RFF processed. ASA2 4.5 There is evidence of document called: Integrated Pest Management identified with code MIP 01, Revision 2, dated: 01/11/2014. In this document pests and crop diseases, its management plan and procedures to be performed in each case are described. It includes trapping measures for physical control, conservation of biological controls and nectar plants to feed parasitoids.

The agriculture department has dedicated staff, trained and specialized in the work of Integrated Pest Management. There is evidence of the training conducted by the agronomist of Tecnical services for pest monitoring equipment, trapping and chemical applications. For example: Mr. Pablo Caz, Mr. Mauricio Leal, Mr. Alfonso Ical, Mr. Domingo Truz and Mr. Rogelio Caal Ba.

Session Name: Tramp to Rhynchophorus palmarum Instructor: Engineer Carlos Chavez Number of Participants: 10. Date: July 28/ 2016.

Session Name: Cirugy (elimination of leaf) Instructor: Engineer Leonel Orellano Number of Participants: 10. Date: July 6/ 2016. ASA2 4.6 The products used are defined in the document Manual of Integrated Pest Management (code: MIP 01), where the following matters are established: its specific use for each case, monitoring thresholds for decision making and there is also the list of approved products for use AGROCARBE. In this list, product type (fertilizer, herbicide, fungicide, and insecticide), trade name, active ingredient, toxicity category and availability of technical fiche and MSDS are defined.

There is evidence of product application records with all of the parameters required by the RSPO standard and Rainforest Alliance (another scheme of certification of company)

Pesticide applications are only approved under serious situations such as pest population, incidence and severity of damage. This as a result of sampling and evaluation of action thresholds. This is detailed for each case in document: Manual of Integrated Pest Management (MIP 01).

The company no used pesticides that are categorized as World Health Organization Class 1A or 1B, or that are listed by the Stockholm or Rotterdam Conventions, and paraquat. There is evidence of the updated list of prohibited pesticides in compliance with all international agreements, the Rainforest Alliance and RSPO standard. RSPOPC-SUM-REPORT.F01 (3.0) January 2016 Page 22 of 48 Control Union (Malaysia) Sdn. Bhd. B-3-1, Prima Klang Avenue, Jalan Kota KS/1,41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

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The agriculture department has dedicated staff, trained and specialized in the work of Integrated Pest Management. There is evidence of the training conducted by the agronomist of Technical services for pest monitoring equipment, trapping and chemical applications. For example: Mr. Pablo Caz, Mr. Mauricio Leal, Mr. Alfonso Ical, Mr. Domingo Truz and Mr. Rogelio Caal Ba.

• Session Name: Tramp to Rhynchophorus palmarum Instructor: Engineer Carlos Chavez Number of Participants: 10. / Date: July 28/ 2016.

• Session Name: Cirugy (elimination of leaf) Instructor: Engineer Leonel Orellano Number of Participants: 10. / Date: July 6/ 2016

The organization has appropriate Warehouses for storing agrochemical products and storage facilities for containers used in plantations and administrative facilities. Moreover, there is evidence of delivery records of used packaging to Agrequima agrochemical company for proper disposal.

Pesticide applications products are performed with equipment such as knapsack, which allow this work on localized areas where cultivation is required phytosanitary management, minimizing the risks and impacts on the environment and the people who work in the production units. The use of Personal Protective Equipment (PPE) according to the pesticide label product used is evidenced.

No aerial applications are made. / There is a protocol to inform neighboring communities to the case in which it will perform an aerial application.

The employees that handle and that are in contact with Agrochemicals are trained frequently. Evidence of the knowledge and skills of this especial team. Training attendance control records and/or training of internal staff in charge of the storage, handling and application of pesticides in the production units.

It is evident during interviews to the staff in charge of storage, handling and/or application of pesticides (biological), the appropriation of knowledge. The use of Personal Protective Equipment (PPE) according to the pesticide label product used is evidenced.

It is evident during interviews to the staff in charge of storage, handling and/or application of pesticides (biological), the appropriation of knowledge. Empty containers of pesticide products (biological) are managed in specific areas.

Employees who are in direct contact with agrochemicals are submitted annually to cholinesterase examinations. Results in their resumes are evident and no reports are seen by outside medical acceptable range.

No evidence of pregnant and breastfeeding women handling and/or application of pesticides (biological). In interviews with personnel involved in the storage, handling and/or application of pesticides (biological), as well as agronomists, state that no pregnant or nursing women are in charge to carry RSPOPC-SUM-REPORT.F01 (3.0) January 2016 Page 23 of 48 Control Union (Malaysia) Sdn. Bhd. B-3-1, Prima Klang Avenue, Jalan Kota KS/1,41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

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out these tasks. ASA2 4.7 There is evidence of an Industrial Safety and Occupational Health Policy included in the document named: Industrial Safety and Occupational Health Plan applicable for Corporación Agro- Industrial del Caribe. This document contains the workplace health and safety policy, implemented and socialized through training sessions and posters at all the Company’s locations. Safety Policy and Health at Work is set in of Management System Safety and Health at Work (OHSMS); which is posted at the entrance of the plant and a corridor where you have easy access to workers.

Documentation of the hazard assessment matrix of health and safety for organization Agrocaribe was evidenced. However, there are evidenced within this matrix, some specific activities; including the Tractorista, Pastor and Field supervisor. A minor NC was raised.

The company has an epidemiological surveillance program for hearing conservation; noise survey was conducted on November 2015. This assessment of noise, to meet the levels to which employees are exposed, and to know the areas of higher incidence of noise. As a result we have that the extraction and boilers area has the highest noise levels, reaching 87 and 96 decibels of sound pressure. During audit, they were interviewed workers of all processes in the POM and the use of earplugs was evidenced. And workers know the result of the evaluation of noise and the risk to your health. Hygiene and safety measures were established, such as: • Specific training. • Audiometry annual evaluation of workers assigned to this task. • Provision of ear plugs, • Do not allow the person to stay more than 10 hours in the area. • Signalling risk in the area.

The audiometry examinations for all personnel exposed to high noise levels in the POM was evidenced. The action plan on the issue of EPP and training is made.

The training in safe work were evidenced, such as: Confined spaces (Worker: Mr. Estuardo Salguero Sanchez, date: 05/26/2016) Safe Handling of Agrochemicals (Mr. Juan Jose Olivero Choc Caal, date: 02/07/2016) Management, Additionally, the delivery of EPP is evident to workers, for example: Chemical Workers Area: Mr. Moises Rodriguez dated 27/06/2016 and Mr. Juan Jose Olivero Choc Call dated 27/06/2016.

Evidence of the Acts Book of the Hygiene and Safety Committee according to the Record No 05-2014 with the stamp of the Labor and Social Prevision Ministry. In the book, there is evidence of regular meetings of the committee. There is no evidence that the Committee analyzes and prepares the action plans for the accidents. Also, there is no evidence of compliance of the commitments settled in the previous meetings. A minor NC was raised.

The extinguishers in the different areas of POM, warehouses and field were evidenced. Revision is frequently performed of three months. Also, portable kits are evidenced in the POM and farms.

The company has procedures for accidents and emergencies. The training of RSPOPC-SUM-REPORT.F01 (3.0) January 2016 Page 24 of 48 Control Union (Malaysia) Sdn. Bhd. B-3-1, Prima Klang Avenue, Jalan Kota KS/1,41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

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all personnel is performed on these issues. Accident drills are performed with evacuation of people injured.

First aid training for members of the emergency brigade is evidenced. Likewise, there is evidence of the process of worker’s induction and re induction trainings on topics such as first aid, safe working and other issues related to occupational health.

There are first aid kits at different work locations, as well as portable kits are provided to field supervisors, evidenced through the Format of Fist Aid Kits Contents Records, internal document, tracking and follow-up is also done and included on the Format.

The organization has occupational health indicators established in the legislation. The accidents are recorded, documented and researched.

All workers shall be provided with medical care, and covered by accident insurance through the Instituto Guatemalteco de Seguro Social – IGSS. Evidence that the company has its employees affiliated to two types of insurance: the IGSS (Guatemalan Social Security Institute) and a life insurance of 30.000 quetzales that covers death and accidents, plus funeral aid insurance for all members of the solidarity association and cooperative.

Occupational injuries shall be recorded using Lost Time Accident (LTA) metrics was not evidenced. A NC was raised. ASA2 4.8 The company has documents that evidenced the conducted induction programs, a scheduling of the employees’ training according to the needs established by each area manager. A monthly training program is carried regularly with the proper execution monitoring and the presentation of an institutional video for the new personnel. The training in Internal Work Regulations (IWR) was performed on February 30/2016; Code of ethical conduct and integrity Date: 09-07-2016 and Policy to prevent sexual and all other forms of harassment, date: 24-06-2016 were evidenced; verification was performed to different people interviewed during the audit

A file in Excel where you can demonstrate the different trainings for each worker of the company is evidenced. Principle 5: Environmental Responsibility and Conservation of Natural Resources and Biodiversity Criterion by Evidence of the document Environmental Assessment of the Extractora Audit (POM) del Atlántico, performed by the consultant company Ambiente & Desarrollo in the year 2011. This study contains the impact assessments of the extraction process of the palm oil. Summary Evidence of the assessment of the High Conservation Value Areas conducted by the consultant company BIOTERRA. The study was based on a Rapid Ecological Assessment previously conducted by consultants Ambiente & Desarrollo for new plantations of the organization. ASA2 5.1 The organization has conducted an assessment of its environmental impacts, for plantations, the "Environmental Assessment of Agrocaribe project and the Atlantic Extractora" prepared by Environment & Development Company in 2012 was evidenced.

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The organization has made updates to these documents. the update is evidence Licenses Environmental Assessment 03117, 04645, 04646,02348, 01988 emitidida by the Ministry of Environment and Natural Resources - MARN of Guatemala. In documents the inclusion of local communities in identifying environmental impacts is evident.

The Environmental Management Plan is within the Environmental Assessment, which identifies those responsible for the implementation and goals to achieve. the implementation of mitigation measures of environmental impacts, focused on optimizing processes palm oil extraction and reducing the consumption of hazardous products in agricultural crop maintenance activities were evidenced during audit Annual report Environmental Monitoring 2015 prepared by the company Environment & Development presented to the national authority DIGARN (Department of Environmental Management and Natural Resources), for verification of compliance with legal permits to develop its consulting activities.

The updated and valid environmental licenses for Agrocaribe plantations and POM were evidenced ASA2 5.2 The assessment of areas of high conservation value for AGROCARIBE grounds and the Atlantic Extraction Plant, were prepared by an outside consulting company. They were found in the AVC 1.1 which refers to the presence of protected areas, in this case the INCA farm is located in the buffer zone of Punta Wildlife Refuge Manabi. In the evaluation, an area still has plant cover with an extension 40.5 has is located in Florence farm was identified, This remnant of Tropical Rainforest is home to rare species Endangered and Threatened (AVC 1.2) and Endemic Species Area (AVC 1.3). Some of these are: Mammals: Alouatta pigra (LEA_CONAP 1/CITES I/IUCN EN), Allouatta palliata (LEA_CONAP 2/CITES I), Lontra longicaudis (LEA_CONAP 2/CITES 1). Reptiles: Crocodylus acutus (LEA_CONAP 2- Endémica / IUCN VU CITES I), Crocodylus moreletii (LEA_CONAP 2- Endémica / CITES I), Agkistrodon bilineatus (LEA-CONAP 1. Peligros de Extinción) Iguana (CITES II) / Boa constrictor (CITES II). Birds: Ramphastos sulfuratus (CITES II), Caracara cheriway (CITES II), Flora: Vitex kuylenii (IUCN EN), Ficus cobusana (LEA_CONAP 2- Endémica), Cyathea spp (LEA_CONAP 2- Endémica

The organization has implemented management measures for species RAPs and areas of high conservation value. For HCV 1.1, the contact with the Foundation for Eco-development and Conservation FUNDAECO for the management of protected areas present in the area of influence of planting the INCA was evidenced. The implementation of management measures for sensitive species found in the HCV assessment are the Howler Monkey (Alouatta pigra and Alouatta palliata) was evident. At the present date, tracking and monitoring of populations living in the area of the Florencia Farm is evidenced.

Workers are adequately trained in HCV and RAP species, it is evident during audit field. Also, for example: Training with date May 19/2016 was evdenced.

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The monitoring is evidenced through the performed Rapid Ecological Assessment for the AGROCARIBE project by Ambiente y Desarrollo, date: April 2015. Species of Fauna & Flora present in the farms of plantations, with emphasis on the recognition of rare, threatened and endangered species that potentially can be seen in the plantations of the organization are identified.

No HCV 5 and 6 were evidenced. ASA2 5.3 The identification of the waste products of POM and Plantation are evidenced in the Environmental Assessment conducted by Ambiente & Desarrollo. The different types of waste and the different sources were set out.

Evidence of the proper disposal of chemical containers in the areas of cleaning plantation camps, with the respective triple washing and proper buffering. The organization has records of delivery of used packaging of the Agrequima company and Campo Limpio program. Also, the organization has carried out an analysis of the quality of water discharged after treatment performed in biological beds, demonstrating the proper use of mitigation measures pollution.

Solid Waste Integrated Management Program was evidenced. Waste from fats and used oils are delivered to MONTECRISTO, for Bio sanitary waste are disposal trouhth ECOTERMO; papel and Carton with RECIPA, supplier with national environmental permits for this activity. The common wastes are delivered to the Municipality, who recollects the waste and take it to the landfill Patieros. Agronomy department have the records of biomass (POM) that is incorporated to soil in the plantation as organic matter. ASA2 5.4 The electricity generation Project at the POM is continued in the BIOGAS plant through the capture of methane gas produced by the effluents of the extraction process. At the POM, a project has been implemented for the Cogeneration of Thermoelectric Energy with the steam of hot air generated in the boiler, which is supplied with the resulting biomass of the extraction process. Currently, the company has begun to implement a plan to reduce the use of non-renewable fuels through management strategies that allow continuous monitoring of fossil fuel consumption by mobile sources.

The records updates (2016 year): Biogás: 622 MWH and 429 MWH Turbina Dresser Rand: 3120 MWH.

Record for 2015 year: Biogás: 2868 MWH and 1593 MWH Turbina Dresser Rand: 6016.3 MWH (MWH = Mega watt/Hour) ASA2 5.5 Use of fire for preparing land for replanting was not evidenced. The used of fire is prohibited for Company. ASA2 5.6 The conducting a monitoring air quality developed in 2015 by the company ECOQUIMSA in the vicinity of the extraction plant and in the community of "Champona" village in the municipality of Morales, adjacent to the extraction plant was evidenced. The values of NOx, SOx and PM are in accordance with the regulations of the WHO (World Health Organization) and USEPA (U.S. Environmental Protection Agency). Methane gas emissions from System Wastewater Treatment, are used to RSPOPC-SUM-REPORT.F01 (3.0) January 2016 Page 27 of 48 Control Union (Malaysia) Sdn. Bhd. B-3-1, Prima Klang Avenue, Jalan Kota KS/1,41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

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generate biogas also by Fito-purification process sludge are generation mitigates emissions. In addition, the organization has a cogeneration system in POM to avoid vapor (hot air) emission to the atmosphere, thus contributing to mitigate the greenhouse effect and climate change. 5.6.2. The Identification of Greenhouse Gas - GHG evidenced in monitoring air emissions presented to the environmental authority.

Strategies to reduce and minimize emissions are evidenced by:

• Generation of renewable energy from biomass, • Reduced use of nitrogen fertilizers • The construction of biodigesters for the treatment of domestic sewage reducing emissions from in conventional septic tanks. The organization has conducted a study of Carbon Footprint developed by the company Green Development in 2015, with the objective of identifying net emissions of greenhouse gases generated in the agro-industrial activities through the use of PalmGHG calculator, tool developed by RSPO. Total emissions are 31,952.46 tons CO2, and carbon sequestration was: - 133.152 tons CO2, for a net CO2 emission of 101,199.54 tons. Emissions production Crude Palm Oil (PKO) is -1.03 T CO2 / T PKO. The use of biomass to generate electricity avoided CO2 51233.65 T

Principle 6: Responsible Consideration of Employees and of Individuals and Communities by Growers and Millers Criterion by The company has conducted Social Impact Assessment effectively covering Audit the socio economy; culture and health of surrounding people who may be affected by plantation activities by company also from negative or positive impact. The findings are acted upon by developing management and monitoring plans. Procedures for complains and grievances are in place. The company provides housing and other facilities for workers and these are being upgraded via the continual improvement program.

Summary Evidence of an Equity and Nondiscrimination Policy PO-13 dated May 31, 2012, which was socialized with workers through training lectures and videos of induction.

Forced or trafficked labor, sexual and all other forms of harassment, discrimination or child labor were no evidenced. The Company has a “Code of integrity and ethical conduct” that covers all issues. ASA2 6.1 Evidence of a Social Impact Study conducted in March 2012 and updated to March 2014 by the CENTRARSE company, which was sponsored and monitored by the WWF and Solidaridad NGOs.

Evidence of photographs and work with the stakeholders show that the Work Plan was defined in a participatory manner.

Evidence of photographs and work with the stakeholders show that the Work Plan was defined in a participatory manner. For example: President of Communitarian Councils for Development (COCODE in Spanish) Mr. Manuel Vicente Vásquez Vásquez, date: 24-02-2015. There is evidence of a list of the stakeholders and their relevant participation and attendance.

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The action plan for the current year 2016 was updated and the completion of the plan previously provided for the study of social impact was evaluated. It is stipulated that the lines of action where the company will work for the benefit of interested parties will be: education and infrastructure.

The plan is updated each year.

ASA2 6.2 The document called Policy requests, complaints, claims and suggestions of our stakeholders (Revision: 2; Number: 24; Date: September 2015) was evidenced.

The specific timeframe to respond to requests for information is defined as two week and the responsible person is Corporative Manager. A free telephone line (Guatemala number 23780188), e-mail and physical mailboxes are the measures taken by the company to receive requests. Also, Evidence of photographs and work with the stakeholders show that the Work Plan was defined in a participatory manner. For example: President of Communitarian Councils for Development (COCODE in Spanish) Mr. Manuel Vicente Vásquez Vásquez, date: 24-02-2015. There is evidence of a list of the stakeholders and their relevant participation and attendance.

It was established that the Human Resources Manager and the Corporate Social Responsibility manager are the ones in charge of all the communications matters with the stakeholders.

Evidence of a list of the company’s stakeholders. Evidence of communication records, letters and requests of the stakeholders; also information billboards for the employees in Spanish and Qeqchi Lenguage, guaranteeing the understanding of the missives. ASA2 6.3 In the document called: Policy requests, complaints, claims and suggestions of our stakeholders (Revision: 2; Number: 24; Date: September 2015) is stablishes the protocols to submit the claims. No dispute proceedings against the company. ASA2 6.4 Procedure for identifying and customary rights and rights of use was evidenced. Is a Internal document of AGROCARIBE company. This covers meetings with the stakeholders involved and there was evidence of the minutes of the meetings with local communities where participatory mapping was conducted and concluded that there are no such rights in the property. There is a procedure for calculating and distributing fair compensation in case of customary rights. There have been no cases. ASA2 6.5 The pay and working conditions are reflected in the agreements signed between Company and workers. There is evidence that all employees are hired directly by the company through indefinite term contracts or employment cards to guarantee the continuity of employment linkages. Evidence of employees’ payment supports of their wages and benefits according to the requirement of law in Guatemala, through pay slips. For example: Female Workers: Mrs. Yenni Anabella and Mrs. Dominga Choc Caal. // Men workers: Mr. Tot Rax, Mr. Juan José Olivero Choc Caal, and Mr. Moises Rodriguez.

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Evidence of the amounts payable to employees, which has policies such as an internal promotion policy PO-05 are exposed in billboard in the official language and language or mother tongue. There is support for all legal payments stipulated by the regulations of the country.

Evidence that the employees live in company facilities. These houses meet all requirements to ensure welfare for their workers. Also, the provision of hydrating beverages and balanced diet for workers in the plantations.

It was evidenced directly on the premises of the company there is an adequate and sufficient food provision to feed the workers on the plantation. ASA2 6.6 Evidence of the Labor Policy O-14 dated May 31, 2014, freedom of organization of any kind that employees want to integrate or associate. Also, in the internal work regulations (IWR) are said to "Limit or pressure in any way workers in the exercise of their right of association."

The internal work regulations (IWR) is showed in various worksites. Is public and delivered in book with all company policies to all workers.

There are two organizations of mutual help where the Agrocaribe workers can associate. These are Copepalma R.L. and Asoservicios (unions)

Also, regular meetings are held between the workers and their bosses where they can submit requests that would be revised and where their questions are answered. The workers can also submit these through their unions. ASA2 6.7 There is no evidence of minors hired by the company and the interviews conducted sustained this. It is assessed in the Hiring Policy PO03 within the regulations of paragraph C that the candidate’s file is available at the moment of the hiring, this integrated by: Identification Document (ID) as prove that they are over 18. ASA2 6.8 There is a policy of Social Responsibility published and socialized, where the rights of equal opportunities and non-discrimination are specified. During the field audit and interviews there wasn’t any evidence of discrimination. Evidence of an Equity and Nondiscrimination Policy PO-13 dated May 31, 2012, which was socialized with workers through training lectures and videos of induction.

Evidenced that employees and groups (local communities, women and migrant workers) have not been discriminated against.

For the selection of staff is taken into account: staff competencies, the job description and any written procedure: “Recruitment and Induction procedure” with date of issue of May 2016. ASA2 6.9 There is Sexual Harassment Procedure established and socialized with the personnel. Also, Policy Sexual Harassment, date: September 2015, was evidenced. This policy is communicated to all levels of the workforce, for example: The training in this policy for Mrs. Yenny Anabella Toto and Mrs. Dominga Choc Caal were evidenced.

The policy to protect the reproductive rights, date: September 2015, was evidenced. This policy is communicated to all levels of the workforce, for example: The

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training in this policy for Mrs. Yenny Anabella Toto and Mrs. Dominga Choc Caal were evidenced

There is a complaints mechanism through the Requests, Complaints, Claims and Suggestions Procedure. ASA2 6.10 No applicable. The smallholder scheme is not considered. ASA2 6.11 The document Social Impact Study conducted in March 2015 shows that one of the stakeholders was identified as local communities. There is also evidence of the action plan with these communities with an established and executed timetable for 2016.

The company has two lines of action: • Infrastructure. • Educational Inclusion (and Strengthening microenterprise)

The inclusive educations project which objective to contribute to the creation of local business. In Education the number of beneficiaries: 6 rural schools and 2 local teachers and more 400 students of educational institutions in the municipality of Ibazal.

It is evident that we have worked with local communities in a participatory manner with them. ASA2 6.12 In the company no forms of forced or trafficked labor are used. Makes no contract substitution. In interview and document review was evidenced. ASA2 6.13 Evidence of an Equity and Nondiscrimination Policy PO-13 dated May 31, 2012, which was socialized with workers through training lectures and videos of induction that included human rights subjects. In interview and document review was evidenced. Principle 7: Responsible Development of New Plantings Criterion by Not applicable to this client. // Developments of new plantings are not Summary Audit evidenced in certified supply base. ASA2 7.1 Not applicable to this client. ASA2 7.2 Not applicable to this client. ASA2 7.3 Not applicable to this client. ASA2 7.4 Not applicable to this client. ASA2 7.5 Not applicable to this client. ASA2 7.6 Not applicable to this client. ASA2 7.7 Not applicable to this client. ASA2 7.8 Not applicable to this client. Principle 8: Commitment to Continuous Improvement in Key Areas of Activity Criterion by All the operating units are regularly monitoring and review their activities and Audit develop and implement action plans that allow demonstrable continual improvement in key operations such as in minimizing use of certain Summary pesticides, environmental impacts, maximizing recycling and minimizing waste or by-products generation, pollution prevention plans. Both mill and estates has sufficient records and documents to justify the achievements. ASA2 8.1 All the operating units are regularly monitoring and review their activities and develop and implement action plans that allow demonstrable continual improvement in key operations such as environmental impacts, maximizing recycling and minimizing waste or by-products generation, pollution RSPOPC-SUM-REPORT.F01 (3.0) January 2016 Page 31 of 48 Control Union (Malaysia) Sdn. Bhd. B-3-1, Prima Klang Avenue, Jalan Kota KS/1,41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

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prevention plans.

There is evidence of a Plan for Continuous Improvement supported by the ISO Standard 9001, that includes the Environmental Management Plan with the following programs: • Efficient Energy Use • Efficient water use and water saving Program • Integrated Solid Waste Management Program • Particulate Material Reduction • Project for the Conservation of Biodiversity in the palm oil crops areas.

There is evidence of follow-ups for indicators: • Kilowatts (consumed energy) / tonnes of Fresh Fruit Bunch. • Cubic meters per tonnes of Fresh Fruit Bunch. • Fossil Fuel gallons / ton of Fresh Fruit Bunch • Kilowatt hours of renewable energy generated and consumed (CHP) • Productivity per hectare.

In the Agronomy area is evident the policy and the monitoring of reduction of the use pesticides and herbicides with category 1a and 1b. There is also evidence of the especial management of the areas where the soil presents sandy strips and therefore organic material is applied to improve its structure and chemical conditions.

In the social area, the company is making investments towards the housing improvement of their employees, the provision of hydrating beverages and balanced diet, among other corporate social responsibility projects

4.3 Non-conformity Raised During this Audit and Any from the Previous Year, if applicable This section gives an over view of new or revised non-conformities raised during this audit and of action taken to close out non-conformities raised during the previous audits, if applicable  If a minor-non-conformity raised at the last audit, is not closed out, then this will be raised to Major status and the company given 60 days to close this out.  The NC number is comprised of 2 parts to include the year in which the NC was raised as well as a sequential number.

4.3.1 Non-Conformities Identified during this Audit The following NC’s were raised for this audit.

NC number: 001 Client name: Corporacion Agro-Industrial del Caribe S.A. - AGROCARIBE Date raised: July 22nd /2016 Major or Minor: Major Site : Plantation Raised by: Mr. Merclin Isaac Lopez Deadline : September 21nd /2016 Aspect of standard: 4.7.2. All operations where health and safety is an issue shall be risk assessed, and procedures and actions shall be documented and implemented to address the identified issues. All precautions attached to products shall be properly observed and applied to the workers.

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Evidence of non-conformity: Documentation of the hazard assessment matrix of health and safety for organization Agrocaribe was evidenced. However, there are evidenced within this matrix, some specific activities; including the Tractorista, Pastor and Field supervisor.

Lead Assessor signature:

Date: July 22nd /2016 Root Cause Analysis and extent: (To be filled by Auditee) The matrix of health and safety for organization Agrocaribe was prepared by external staff and had not been revised so rigorously.

Corrective/Preventive Actions: (To be filled by Auditee) The matrix is updated and was trained personnel occupying those positions. The semi-annual review of this matrix is proposed to identify possible new activities. Evidence of Conformity:  The assessment matrix of health and safety for organization AGROCARIBE, version 2. Date: August 15/2016  Training records of workers in risks of their work, date: 18 august 2016. Review of evidences submitted to CUC:  The assessment matrix of health and safety for organization AGROCARIBE, version 2. Date: August 15/2016  Training records of workers in risks of their work, date: 18 august 2016. Tractorista: Six workers attend this training, for example: Mr. Sergio Neftali Martinez, Mr. Edwin Augusto Lara and Mr. Edgar Lopez Pastor: Nine workers attend this training, for example: Mr. Gilberto Cervantes, Mr. Raul Estuardo Teni and Carlos Coc Field supervisors: Nine workers attend this training, for example: Mr. Jaime Portela, Mr. Segio Berganza and Mr. Mario Ramos. Conclusion by CUC: This document demonstrated the updating and inclusion of activities that are not included in initial study. And training the personnel performing the work was evidenced. NC Status: Yes (CLOSED) No (OPEN) ON SITE VERIFICATION REQUIRED Yes No Lead Assessor signature: Date: September 21st/2016

NC number: 002 Client name: Corporacion Agro-Industrial del Caribe S.A. - AGROCARIBE Date raised: July 22nd /2016 Major or Minor: Major Site : Plantation Raised by: Mr. Merclin Isaac Lopez Deadline : September 21nd /2016 Aspect of standard: 4.7.4. The responsible person/persons shall be identified. There shall be records of regular meetings between the responsible person/s and workers. Concerns of all parties about health, safety and welfare shall be discussed at these meetings, and any issues raised shall be recorded..

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Evidence of non-conformity:

Evidence of the Acts Book of the Hygiene and Safety Committee according to the Record No 05-2014 with the stamp of the Labor and Social Prevision Ministry. In the book, there is evidence of regular meetings of the committee. There is no evidence that the Committee analyzes and prepares the action plans for the accidents. Also, there is no evidence of compliance of the commitments settled in the previous meetings.

Lead Assessor signature:

Date: July 22nd /2016 Root Cause Analysis and extent: (To be filled by Auditee) Lack of knowledge the functions of the committee against laws of the Guatemala country. Corrective/Preventive Actions: (To be filled by Auditee) The country's legislation was revised and functioning of the committee was set. Extraordinary meeting be held and the outstanding issues were verified. Evidence of Conformity: * Minutes of meeting of the Hygiene and Safety Committee date: August 16/2016. * Monthly report of accidents classified by cause. * The report of accidents as a percentage of the total population of employees. * Training schedule in topic: "safe work" Review of evidences submitted to CUC These documents demonstrate the committee is in compliance, which have been revised accidents and have taken measures to impact the safety at work actions. Conclusion by CUC: This document demonstrated NC Status: Yes (CLOSED) No (OPEN) ON SITE VERIFICATION REQUIRED Yes No Lead Assessor signature: Date: September 21st/2016

NC number: 003 Client name: Corporacion Agro-Industrial del Caribe S.A. - AGROCARIBE Date raised: July 22nd /2016 Major or Minor: Minor Site : Plantation Raised by: Mr. Merclin Isaac Lopez Deadline : July 22nd /2017 Aspect of standard: 4.7.7. Occupational injuries shall be recorded using Lost Time Accident (LTA) metrics.

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Evidence of non-conformity:

Occupational injuries shall be recorded using Lost Time Accident (LTA) metrics was not evidenced.

Lead Assessor signature:

Date: July 22nd /2016 Root Cause Analysis and extent: (To be filled by Auditee)

Corrective/Preventive Actions: (To be filled by Auditee)

Evidence of Conformity:

Review of evidences submitted to CUC:

Conclusion by CUC: NC Status: Yes (CLOSED) No (OPEN) ON SITE VERIFICATION REQUIRED Yes No Lead Assessor signature: Date:

4.3.2 The following NC’s were raised during the last audit and the status was reviewed as indicated below.

NC number: 2015-01 Client name: Corporación Agroindustrial del Caribe S.A. – AGROCARIBE Date raised: 20/05/2015 Major or Minor: Major (CLOSED) Raised by: Merclin Isaac López P. Aspect of standard: 7.8.1. The carbon stock of the proposed development area and major potential sources of emissions that may result directly from the development shall be identified and estimated Evidence of non-conformity: The organization has conducted analyzes of air quality of the surrounding areas to the Palm Oil Mill. However, at the time of the audit no assessments, monitoring and reporting of emissions resulting directly from boilers and other sources of greenhouse gases from the palm oil production process were evidenced. It is necessary for the company to analyze the changes in carbon stocks within their operations, using the tools approved by RSPO to calculate the carbon footprint of new plantings and the company in general.

Proposed corrective action / improvement action by company.

 Identification and estimation of the main potential sources of emissions and the carbon stock will be held.

Timeline for conformance: Before 18/08/2015

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818385

Review of corrective /improvement action:

The Final Report of the Quantification of the carbon footprint of 2014, conducted by the consulting firm Green Development, in June 2015 is evidenced.

It is estimated the total emission of greenhouse gases released into the atmosphere by all Agrocaribe organization activities related to the production of palm oil (Administrative, production and marketing). The unit analyzes estimated at 47.55 kg CO2 per ton of processed annual fruit and a total of 5094.48 tons of CO2 released into the atmosphere was measured.

The largest proportion are associated with emissions of primary range (94.30%), for the use of refrigerants and propane vehicles, followed by tertiary emissions representing 4.37% for exports and freight, and secondary emissions from consumption electricity with 1.37% of total emissions. Moreover, carbon fixation of 10,152.5 hectares planting fixed Agrocaribe an estimated 253812.5 tons of carbon dioxide, on the average fixation of 25 tons per hectare of carbon dioxide.

Agrocaribe sold to the national grid renewable power, consumption derived from biomass and biogas, 2014, the sale of electricity was 2,801,027 Kw / H, representing a reduction of 896.33 tons of carbon dioxide equivalent.

Signature:

Merclin Isaac Lopez P. Date: 01.06.2015

NC number: 2015-02 Client name: Corporación Agroindustrial del Caribe S.A. – AGROCARIBE Date raised: 21/05/2015 Major or Minor: Minor (CLOSED) Raised by: Merclin Isaac López P. Aspect of standard: 1.3.1 There shall be a written policy committing to a code of ethical conduct and integrity in all operations and transactions, which shall be documented and communicated to all levels of the workforce and operations. Evidence of non-conformity: There is no evidence. The company is in the process of creating the code of integrity and ethical conduct, which is currently in the approval phase by the senior managers and later it will enter the socialization phase. Review of corrective /improvement action: The documented “Code of integrity and ethical conduct”, which contains a written commitment of the company to integrity and ethical conduct in all its operations and transactions policy, which is delivered to the income (new contract) all employees of the organization.

This policy is communicated to all levels of the workforce and operations. All this is evident during interviews and document review.

This NC was closed during ASA. Signature:

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818385

Merclin Isaac Lopez P. Date: July 22nd /2016

NC number: 2015-03 Client name: Corporación Agroindustrial del Caribe S.A. – AGROCARIBE Date raised: 21/05/2015 Major or Minor: Minor (CLOSED) Raised by: Merclin Isaac López P. Aspect of standard: 2.1.3 A mechanism for ensuring compliance shall be implemented. Evidence of non-conformity: There is a legal compliance matrix and a law updates procedure. Nonetheless, there is no evidence of an implemented mechanism that guarantees that the company is complying with the regulations or with the established action plan. Review of corrective /improvement action: There is a legal compliance matrix and a law updates procedure. The digital file called Matrix legal requirements AGROCARIBE (Palm oil cultivation and POM), Version 2 were evidenced. It is detailed all applicable legal requirements and their level of compliance.

The updates of the changes in the law are known through the direct assistance of an external lawyer (hired consultant) by e-mail to the responsible of each area. Evidence of e-mail with update reports in the e-mail of Mrs. Maria Jose Interiano (Certifications and Environment Manager). This communication is monthly.

This NC was closed during ASA. Signature:

Merclin Isaac Lopez P. Date: July 19th /2016

NC number: 2015-04 Client name: Corporación Agroindustrial del Caribe S.A. – AGROCARIBE Date raised: 21/05/2015 Major or Minor: Minor (CLOSED) Raised by: Merclin Isaac López P. Aspect of standard: 4.7.3. All workers involved in the operation shall be adequately trained in safe working practices (see Criterion 4.8). Adequate and appropriate protective equipment shall be available to all workers at the place of work to cover all potentially hazardous operations, such as pesticide application, machine operations, and land preparation, harvesting and, if it is used, burning. Evidence of non-conformity: There is no evidence of specific training for hazardous jobs, such as: work at heights, confined spaces and work with risks of burning.

There is evidence of the delivery of personal protective equipment (PPE). However during the tour of the mill, a worker was evidenced without proper use of their PPE such as goggles and gloves in the Boiler. RSPOPC-SUM-REPORT.F01 (3.0) January 2016 Page 37 of 48 Control Union (Malaysia) Sdn. Bhd. B-3-1, Prima Klang Avenue, Jalan Kota KS/1,41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818385

Additionally, there was not a complete delivery of personal protective equipment for agrochemical applicators, missing supply rubber boots, head and neck protection. Review of corrective /improvement action: The company has conducted a training of retraining workers of the boiler on the use of protective equipment. The record training with worker signature was evidenced and this work site is again visited during this audit.

The delivery of EPP to workers were evidenced, for example: Chemical Workers Area: Mr. Moises Rodriguez dated 27/06/2016 and Mr. Juan Jose Olivero Choc Call, dated: 27/06/2016. Also, There is evidence of the delivery of personal protective equipment (PPE) to all workers, according to the risk of their work.

This NC was closed during ASA. Signature:

Merclin Isaac Lopez P. Date: July 19th /2016

NC number: 2015-05 Client name: Corporación Agroindustrial del Caribe S.A. – AGROCARIBE Date raised: 21/05/2015 Major or Minor: Minor (CLOSED) Raised by: Merclin Isaac López P. Aspect of standard: 4.8.1. A formal training programme shall be in place that covers all aspects of the RSPO Principles and Criteria, and that includes regular assessments of training needs and documentation of the programme. Evidence of non-conformity: The company has documents that evidenced the conducted induction programs, a scheduling of the employees’ training according to the needs established by each area manager. A monthly training program is carried regularly with the proper execution monitoring and the presentation of an institutional video for the new personnel. However, there is no evidence of induction and training procedures documented. Also, there was evidence of two construction employees of the POM and no evidence of neither their files, nor their induction process to the company, nor the risks that they are exposed to in their daily work. Review of corrective /improvement action: The company has documents that evidenced the conducted training to POM Supervisor about recruitment procedure (Mr. Maximo Zelaya), because personnel hired for civil works (wall reparation) did not meet the requirements. The workers were suspended while are complied with all legal and procedural training. The folders of recruitment, medical exams and training of workers: Mr. Manuel Mejia and Mr. Alfonso Blanco were evidenced.

This NC was closed during ASA. Signature:

Merclin Isaac Lopez P. Date: July 19th /2016

NC number: 2015-06

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818385

Client name: Corporación Agroindustrial del Caribe S.A. – AGROCARIBE Date raised: 21/05/2015 Major or Minor: Minor (CLOSED) Raised by: Merclin Isaac López P. Aspect of standard: 4.8.2. Records of training for each employee shall be maintained. Evidence of non-conformity: No evidence of traceability of training per worker. General listings records are kept of the trainings and socializations of different subjects but without control of the personnel that attended. Review of corrective /improvement action: A file in Excel where you can demonstrate the different trainings for each worker of the company is evidenced. This archive is managed by human resources department and is linked to the list of active workers to pay. All this is evident during interviews and document review.

This NC was closed during ASA. Signature:

Merclin Isaac Lopez P. Date: July 22th /2016

NC number: 2015-07 Client name: Corporación Agroindustrial del Caribe S.A. – AGROCARIBE Date raised: 21/05/2015 Major or Minor: Minor (CLOSED) Raised by: Merclin Isaac López P. Aspect of standard: 5.2.2. Where rare, threatened or endangered (RTE) species, or HCVs, are present or are affected by plantation or mill operations, appropriate measures that are expected to maintain and/or enhance them shall be implemented through a management plan. Evidence of non-conformity: In the HCV Study conducted by BIOTERRA in January 2014, no presences of the HCV on the company’s lands were identified. Nonetheless, in the Rapid Ecological Assessment previously conducted by consultants Ambiente & Desarrollo on January 2014 and in the Monitoring Studies of 2015, some categorized species were identified in Conservation Status as Threatened or Endangered by both international bodies IUCN, CITES, and also by the National Legislation in Guatemala CONAP.

At the time of the audit, the implementation of specific management measures to promote ecological dynamics of RAPs species identified as vulnerable state of conservation was not evidenced. (Eg, Cedrela odorata, Lontra longicaudis, Alouatta palliata) nor Management Plans for areas with high potential of being categorized as HCV in the areas of influence of the plantations. Review of corrective /improvement action: The organization has implemented management measures for species RAPs and areas of high conservation value. For HCV 1.1, the contact with the Foundation for Eco-development and Conservation FUNDAECO for the management of protected areas present in the area of influence of planting the INCA was evidenced. The implementation of management measures for sensitive species found in the HCV assessment are the Howler Monkey (Alouatta pigra and Alouatta palliata) was evident. At the present date, tracking and monitoring of populations living in the area of the Florencia Farm is evidenced.

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818385

This NC was closed during ASA. Signature:

Merclin Isaac Lopez P. Date: July 20th /2016

NC number: 2015-08 Client name: Corporación Agroindustrial del Caribe S.A. – AGROCARIBE Date raised: 21/05/2015 Major or Minor: Minor (CLOSED) Raised by: Merclin Isaac López P. Aspect of standard: 5.3.3. A waste management and disposal plan to avoid or reduce pollution shall be documented and implemented. Evidence of non-conformity: Evidence of Solid Waste Integrated Management Program. Waste from fats and used oils are delivered to Transport Montecristo, supplier with national environmental permits for this activity. The common wastes are delivered to the Municipality, who recollects the waste and take it to the landfill Patieros. However, during the tour of the mil, inappropriate storage facilities for solid waste were evidenced, without the proper signaling and protection to avoid environmental affectations. Moreover, the documents of the Management plans do not include the characterization of hazardous waste generated in the extraction processes and crop maintenance. Review of corrective /improvement action: Evidence of the proper disposal of chemical containers in the areas of cleaning plantation camps, with the respective triple washing and proper buffering. The organization has records of delivery of used packaging of the Agrequima company and Campo Limpio program. Also, the organization has carried out an analysis of the quality of water discharged after treatment performed in biological beds, demonstrating the proper use of mitigation measures pollution.

Solid Waste Integrated Management Program was evidenced. Waste from fats and used oils are delivered to MONTECRISTO, for Bio sanitary waste are disposal through ECOTERMO; papel and Carton with RECIPA, supplier with national environmental permits for this activity. The common wastes are delivered to the Municipality, who recollects the waste and take it to the landfill Patieros. Agronomy department have the records of biomass (POM) that is incorporated to soil in the plantation as organic matter.

This NC was closed during ASA. Signature:

Merclin Isaac Lopez P. Date: July 20th /2016

NC number: 2015-09 Client name: Corporación Agroindustrial del Caribe S.A. – AGROCARIBE Date raised: 21/05/2015 Major or Minor: Minor (CLOSED) Raised by: Merclin Isaac López P. RSPOPC-SUM-REPORT.F01 (3.0) January 2016 Page 40 of 48 Control Union (Malaysia) Sdn. Bhd. B-3-1, Prima Klang Avenue, Jalan Kota KS/1,41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818385

Aspect of standard: 6.8.3. It shall be demonstrated that recruitment selection; hiring and promotion are based on skills, capabilities, qualities, and medical fitness necessary for the jobs available. Evidence of non-conformity: No evidence of a clear procedure on how the activities of recruitment, hiring and promotion are made and that these are based on the skills and abilities of applicants. Review of corrective /improvement action: For the selection of staff is taken into account: staff competencies, the job description and any written procedure: “Recruitment and Induction procedure” with date of issue of May 2016. This NC was closed during ASA. Signature:

Merclin Isaac Lopez P. Date: July 20th /2016

NC number: 2015-010 Client name: Corporación Agroindustrial del Caribe S.A. – AGROCARIBE Date raised: 21/05/2015 Major or Minor: Minor (CLOSED) Raised by: Merclin Isaac López P. Aspect of standard: 6.9.2. A policy to protect the reproductive rights of all, especially of women, shall be implemented and communicated to all levels of the workforce. Evidence of non-conformity: A policy to protect the reproductive rights of all is not evidenced.

Review of corrective /improvement action: There is Sexual Harassment Procedure established and socialized with the personnel. Also, Policy Sexual Harassment, date: September 2015, was evidenced. This policy is communicated to all levels of the workforce, for example: The training in this policy for Mrs. Yenny Anabella Toto and Mrs. Dominga Choc Caal were evidenced.

The policy to protect the reproductive rights, date: September 2015, was evidenced. This policy is communicated to all levels of the workforce, for example: The training in this policy for Mrs. Yenny Anabella Toto and Mrs. Dominga Choc Caal were evidenced.

This NC was closed during ASA. Signature:

Merclin Isaac Lopez P. Date: July 22nd /2016

4.3.3 Observations Raised During this Audit

Client name: Nill Date raised:

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818385

Raised by:

Assessors Signature Date DD/MM/YYYY

4.4 Issues that were raised during the Stakeholder Consultation, if any Stakeholders were either informed by the client or by Control Union via the RSPO website.  For Main Assessments, a 30 day Stakeholder consultation announcement is published on the RSPO website prior to the audit. The same announcement is circulated by the client prior to the audit  For subsequent Annual Assessments, it is based on stakeholders reading the approved public summary reports available on the RSPO website, the client’s procedures in receiving on-going feedback or if feedback was sent directly to Control Union prior to an audit or thorough RSPO complaints procedures.

During each assessment, the audit team will review the company’s implemented procedures in receiving feedback and will execute field visits and interviews. Not limited to the following questions, any feedback received is reviewed and summarized in this summary report for either Part 2 – Partial Certification or Part 4 – Assessment Findings above or noted below, if applicable: 1. Do you have any remarks on the RSPO standard? 2. What is your relation with the applicant? 3. Are there any plantation or mill management practices that affect you? 4. Do you consider any management is in conflict with the RSPO principles and criteria? 5. Do you have any suggestions for management? 6. Are you aware of any HCV in the plantations or in adjacent land? 7. Are you aware of any endangered or rare species? 8. Are there any adverse (or positive) effects on local communities? 9. Additional comments? 11. Do you have any comments about the assessment team and would you like to meet with them? 12. Do you have any comments for the client’s management of any other plantations? Subject raised Company response and Audit team findings proposed action to be taken Nil Nil Nil

PART 5: RSPO SUPPLY CHAIN CERTIFICATION The palm mill mentioned in the scope of the audit was audited against the requirements of the following: RSPO Supply Chain Certification Systems. November 2014 RSPO Supply Chain Certification Standard. November 2014

5.1 POM Included In The Scope Of The Audit Name Mill Location Supply Chain Model Palm Oil Mill Capacity (POM) MT/Hour Address (IP or MB) Km. 276 Carretera al Atlantico, Extractora del 60 Camino Aldea Champona, IP Atlantico S.A. MT/hour Guatemala

5.2 Confirmation Of The Company’s Summary Of Annual Certified Volume Of RSPO Certified Palm Oil And Palm Kernel Over A Specified Period Product CPO (MT) PK (MT) Specified 12 month period CU Code

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818385

Actual volumes between 01/08/2015 to 01/08/2016. POM 1 66,802 12,657 See also 1.6 above. Note:please provide forecasted certified volume

5.3 Summary Report Including A Brief Description Of The Scope Of Certification A full RSPO SCCS certification audit was used during this annual assessment and the findings support the certification based on supply chain model listed above. Under standards: RSPO Supply Chain Standard (2014). RSPO Supply Chain Certification Systems (2014).

Corporación Agroindustrial del Caribe S.A - AGROCARIBE is a family company dedicated to the production and marketing of products derived from palm oil. The POM received the FFB of his own plantations and your process is based in Model IP.

5.4 Monthly Records of Certified and Uncertified FFB Received Since the Last Audit In case of Main Assessment, it shall be the last 12 month figure. Figure are actual FFB production on monthly basis No MONTH-YEAR Certified Supply Bases (MT) Uncertified Supply Bases (MT), if any Total (MT) 1 Jan-15 15.982 0 15.982 2 Feb-15 11.363 0 11.363 3 Mar-15 10.918 0 10.918 4 Apr-15 17.204 0 17.204 5 May-15 20.397 0 20.397 6 Jun-15 23.139 0 23.139 7 Jul-15 28.312 0 28.312 8 Ago-15 33.246 0 33.246 9 Sept-15 34.363 0 34.363 10 Oct-15 32.801 0 32.801 11 Nov-15 28.977 0 28.977 12 Dec-15 18.057 0 18.057 TOTAL 274,759 274,759

5.5 Monthly Records of Certified CPO and PK Since the Last Audit In case of Main Assessment, it shall be the last 12 month figure. Figure are actual CPO and PK production on monthly basis No MONTH-YEAR Certified CPO (MT) Certified PK (MT) 1 Jan-15 3.153 719 2 Feb-15 2.407 511 3 Mar-15 2.420 491 4 Apr-15 4.072 774 5 May-15 4.962 918 6 Jun-15 5.468 1.041 7 Jul-15 6.879 1.274 8 Ago-15 7.956 1.496 9 Sept-15 8.184 1.546 10 Oct-15 7.803 1.476 11 Nov-15 6.389 1.304 12 Dec-15 4.085 813 TOTAL 63,778 12,363

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5.6 Records of Certified CPO & PK Sold under GreenPlam to Buyers since the Last Audit, if Any In case of Main Assessment, it shall be the last 12 month figure. Figure are actual Certified CPO & PK Sold under GreenPlam to Buyers on monthly basis Certified CPO Certified PK No Buyers Name GreenPalm Trading No (MT) Sold (MT) Sold 1 Nill 2

5.7 Records of Certified CPO & PK Sold under UTZ eTrace to Buyers since the Last Audit, if Any In case of Main Assessment, it shall be the last 12 month figure. If this is an Annual Surveillance Assessment, the figures used are since the last audit. The transactions were sighted form the clients registered UTZ eTrace Account. Certified CPO Certified PK No Buyers Name UTZ eTrace Trading No (MT) Sold (MT) Sold 1 Pasternak Baum @ Co., Inc. TR-ad95ac4a-f0d4 4001.18 2 Pasternak Baum @ Co., Inc. TR-5a4c989e-b776 3.962,52 3 Pasternak Baum @ Co., Inc. TR-c362aeee-e7cb 3.003,65 4 Pasternak Baum @ Co., Inc. TR-06b4a2f5-99c4 3.002,40 5 Pasternak Baum @ Co., Inc. TR-19c4f536-dadf 3.004,16 6 Pasternak Baum @ Co., Inc. TR-220db866-e169 6.001,79 7 Pasternak Baum @ Co., Inc. TR-5f620c29-473e 1.999,53 8 CAI TRADING, LLC TR-c7113d0d-353e 2.000,39 9 CAI TRADING, LLC TR-c428034c-cbd1 401,52 10 CAI TRADING, LLC TR-92e89ba9-f231 420,00 11 CAI TRADING, LLC TR-82553786-2d20 405,53 12 CAI TRADING, LLC TR-859f3d13-46f1 1.080,37 13 Pasternak Baum @ Co., Inc. TR-035bb191-0e1b 500,00 14 Pasternak Baum @ Co., Inc. TR-8cd41caf-3cc5 501,40 15 Cargill de México, S.A. de C.V. TR-9ceb3da2-7a47 44,60 16 Cargill de México, S.A. de C.V. TR-5c92a40c-3e11 133,80 Note: this transactions are 2016, because in year 2015 the company no sale Certified products.

5.8 Non-Conformities Identified during this Audit Timeline for compliance: 1. All non-conformances observed during an audit shall be classified as ‘major’ since all requirements for Supply Chain certification have to be met before granting certification. 2. For Main Assessments, all non-conformances shall be addressed satisfactorily by the operation before certification may be granted by the certification body. If non-conformances are not addressed within three (3) months of the audit, a full re-audit shall be required. The certification body shall assess the effectiveness of the corrective and/or preventive actions taken before closing out the non-conformances. 3. For Annual Surveillance Assessments, non-conformances raised after the certification are serious (i.e. must be considered as a major) and the integrity of the RSPO Supply Chain Certification is at risk. A maximum of one month is to be given to the certified client to satisfactorily address the non-conformance. The certification body shall assess the effectiveness of the corrective and/or or preventive actions taken. Should the nonconformance not be addressed within the one-month maximum timeframe, a suspension or withdrawal of the certificate and a full re-audit may be necessary. 4. If no non-conformances are observed at an audit or when the corrective action plan has satisfactorily addressed raised non-conformance(s), the client shall be recommended for (re-) certification.

No NC was raised during this audit

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NC Number: None Date: Reference to standard: Standard requirement: Evidence of non-compliance:

5.9 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 Corporación Agroindustrial del Caribe S.A - AGROCARIBE. Is a family Company with a solid integrated management system, certified under Rainforest Alliance, Business Alliance for Secure Commerce BASC, KOSHER certification and certified Emissions Reduction, for the traceability of their products have Scale System and format excel allowing register receiving and delivery products maintaining control throughout the supply chain system.

Mrs. Maria Jose Interiano (Manager Certification and Environment) and Mrs. Cristina Samayoa Aycinena (Sales Manager) are the responsible for the maintenance and implementation of the RSPO Supply Chain Certifications System in all facilities.

5.10 Final Certification decision by Control Union for the RSPO SCCS Audit of the POM Recommendations made: Yes Summary of non- No NC was raised. compliances: Certification status of client: The POM included in the scope of this audit demonstrated full compliance with the RSPO SCCS.

With effect from the certification date given in the RSPOPC certificate, this POM mentioned in the scope of this report is considered to be certified in accordance with the RSPO SCCS.

PART 6: CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

6.1 Date of next ASA The provisional date for the next ASA is: May 2017

6.2 Date for Closure of Non-Conformities See sections above for details of NC’s, if any  All major NCs to be closed by: None  All minor NCs to be closed by: Before next surveillance audit

6.3 Signing by the Client I the undersigned, being the most senior relevant management representative of the operation seeking or holding certification, agree with the contents and audit findings as presented in this document .

I also confirm:  Acceptance of liability in execution of the instructions given.  That this company was made aware that the findings of the audit team are tentative; pending review and decision making by the duly designated representatives of Control Union Certifications. RSPOPC-SUM-REPORT.F01 (3.0) January 2016 Page 45 of 48 Control Union (Malaysia) Sdn. Bhd. B-3-1, Prima Klang Avenue, Jalan Kota KS/1,41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU818385

 That during the closing meeting all agenda items was covered by the Lead Auditor.

Acknowledged by: Name: Mr. Jose Roberto Montenegro Position: General Manager Date: 22/09/2016

6.4 Signing by the Lead Auditor I the undersigned, being the Lead Auditor, confirm that this report is an accurate record of the findings and of the closing meeting. I further confirm that the summary of the findings as presented in this report are a true representation of the actual findings of the audit team.

Acknowledged by: Name: Mr. Merclin Lopez Position: Lead Auditor

Date: 22/09/2016 Signature

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

Acknowledged by: Name: Mr. Muhammad Haris Abdullah Position: Certifier Date: 07/10/2016 Signature

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PART 7: APPENDICIES

Appendix 1: Location Map for this Certification Unit From 1.9, the location map(s)

Map #1. Localization of Agrocaribe in country Guatemal and Centroamerica region.

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Map #2. The localization of farms of the Plantation Agrocaribe.

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