RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

RSPO PRINCIPLES & CRITERIA PUBLIC SUMMARY REPORT ANNUAL SURVEILLANCE ASSESSMENT 2

Malaysia JERAM PADANG PALM OIL MILL Kuala Lumpur-Kepong Berhad 2014

Report prepared by: Mahaswaran Maliyapan (Lead Assessor) Certification decision by: Gerben Stegeman (Certifier) Certifying Office Control Union () Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100 Klang, Selangor, Malaysia [email protected] Tel: +603 -3377 1600 / 1 700

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

RSPOPC-SUM-REPORT.F01 MAY 2014 Page 1 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

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 ...... 6 1.7.3 Conservation and HCV Area (Ha) ...... 6 1.7.4 Percentage of Planted Oil Palm by different Age Ranges .. Error! Bookmark not defined. 1.7.5 Calculation of the Number of Production Units (N) to Sample for the Mill ...... 7 1.8 PROGRESS OF ASSOCIATED SMALLHOLDERS OR OUT -GROWERS , IF APPLICABLE TO THIS ASSESSMENT ...... 7 1.9 LOCATION MAP FOR THIS CERTIFICATION UNIT (S EE APPENDIX 1) ...... 7 PART 2: PARTIAL CERTIFICATION ...... 7

2.1 MANAGEMENT STRUCTURE ...... 7 2.2 NON -COMPLIANCE IDENTIFIED WITH 2.1 ABOVE ...... 8 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 ...... 12 2.6 PARTIAL CERTIFICATION AUDIT AGENDA ...... 12 PART 3: AUDIT PROCESS...... 13

3.1 ABOUT THE CERTIFICATION BODY ...... 13 3.2 AUDIT TEAM ...... 13 3.2.1 Qualifications of the Lead Auditor ...... 13 3.2.2 Qualifications of the Assessment Team ...... 14 3.3 AUDIT METHODOLOGY ...... 15 3.3.1 General Overview ...... 15 3.3.2 Assessment agenda for this Audit ...... Error! Bookmark not defined. PART 4 ASSESSMENT FINDINGS ...... 17

4.1 LEAD ASSESSOR ’S SUMMARY AND RECOMMENDATION FOR CERTIFICATION ...... 17 4.2 SUMMARY OF THE FINDINGS BY PRINCIPLES AND CRITERIA ...... 18 Principle 1: Commitment to Transparency ...... 18 Principle 2: Compliance with Applicable Laws and Regulations ...... 19 Principle 3: Commitment to Long-Term Economic and Financial Viability ...... 20 Principle 4: Use of Appropriate Best Practices by Growers and Millers ...... 21 Principle 5: Environmental Responsibility and Conservation of Natural Resources and Biodiversity ...... 29 Principle 6: Responsible Consideration of Employees and of Individuals and Communities by Growers and Millers ...... 32 Principle 7: Responsible Development of New Plantings ...... 38 Principle 8: Commitment to Continuous Improvement in Key Areas of Activity ...... 38 4.3 SAMPLE CRITERIA APPLIED DURING ANNUAL SURVEILLANCES ONLY & NOT APPLICABLE FOR THE MAIN ASSESSMENT ...... ERROR ! BOOKMARK NOT DEFINED . RSPOPC-SUM-REPORT.F01 MAY 2014 Page 2 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

4.4 NON -CONFORMITY RAISED DURING THIS AUDIT AND ANY FROM THE PREVIOUS YEAR , IF APPLICABLE ...... 39 4.4.1 Non-Conformities Identified during this Audit ...... 39 Non-were raised during this audit. or ...... Error! Bookmark not defined. 4.4.2 Non-Conformity Identified during the last ASA, not applicable for MA ...... 49 Non-were raised during the last audit as this is the Main Assessment. or ...... Error! Bookmark not defined. THE FOLLOWING NC’ S WERE RAISED DURING THE LAST AUDIT AND THE STATUS WAS REVIEWED AS INDICATED BELOW. 49 4.4.2 Observations Raised During this Audit ...... Error! Bookmark not defined. 4.5 ISSUES THAT WERE RAISED DURING THE STAKEHOLDER CONSULTATION , IF ANY ...... 52 PART 5: RSPO SUPPLY CHAIN CERTIFICATION ...... 53

5.1 POM INCLUDED IN THE SCOPE OF THE AUDIT ...... ERROR ! BOOKMARK NOT DEFINED . 5.2 CONFIRMATION OF THE COMPANY ’S SUMMARY OF ANNUAL CERTIFIED VOLUME OF RSPO CERTIFIED PALM OIL AND PALM KERNEL OVER A SPECIFIED PERIOD ...... ERROR ! BOOKMARK NOT DEFINED . 5.3 SUMMARY REPORT INCLUDING A BRIEF DESCRIPTION OF THE SCOPE OF CERTIFICATION ...... 53 5.4 MONTHLY RECORDS OF CERTIFIED AND UNCERTIFIED FFB RECEIVED SINCE THE LAST AUDIT ...... 53 5.5 MONTHLY RECORDS OF CERTIFIED CPO AND PK PRODUCED SINCE THE LAST AUDIT ...... 54 5.6 RECORDS OF CERTIFIED CPO & PK SOLD UNDER GREEN PLAM TO BUYERS SINCE THE LAST AUDIT , IF ANY ...... 54 5.7 RECORDS OF CERTIFIED CPO & PK SOLD UNDER UTZ ETRACE TO BUYERS SINCE THE LAST AUDIT , IF ANY ...... 54 5.8 NON -CONFORMITIES IDENTIFIED DURING THIS AUDIT ...... 54 5.9 DESCRIPTION OF THE ORGANIZATIONAL MANAGEMENT SYSTEMS ...... 58 5.10 FINAL CERTIFICATION DECISION BY CONTROL UNION FOR THE RSPO SCCS AUDIT OF THE POM ...... 58 PART 6: CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY ...... 58

6.1 DATE OF NEXT ASA ...... 58 6.2 DATE FOR CLOSURE OF NON -CONFORMITIES ...... 58 6.3 SIGNING BY THE CLIENT ...... 59 6.4 SIGNING BY THE LEAD AUDITOR ...... 59 6.5 SIGNING BY THE CERTIFIER ...... 59 PART 7: APPENDICIES ...... ERROR! BOOKMARK NOT DEFINED.

APPENDIX 1: LOCATION MAP FOR THIS CERTIFICATION UNIT ...... 60 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 .

RSPOPC-SUM-REPORT.F01 MAY 2014 Page 3 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

PART 1: SCOPE OF THE CERTIFICATION ASSESSMENT AUDIT

1.1 Company and Contact Details Company Name: Kuala Lumpur Kepong Berhad. Business Address: 1, Jalan S. P. Seenivasagam, 30000 Ipoh, Perak. Contact Person: Mr. Sin Chuan Eng Office Telephone: +6089-887240 E-Mail: [email protected] Web Site: www.klk.com.my Other Certifications Held: ISCC

1.2 RSPO Membership & Certification Details RSPO Membership Number: 1-0014-04-000-00 Registered Client Name: Kuala Lumpur Kepong Berhad Certificate Number: CU-RSPO-817884 Start Date Of Certificate: 25/ 9/2012 End Date Of Certificate: 24/9/2017 Date Of Original Certification: 25/9/2012 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: 3Oth June – 02 nd July 201 4 Audit Number: ASA 2

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

1.5 Location of the Palm Oil Mill Name Mill Location GPS Reference Palm Oil Mill Capacity (POM) MT/Hour Address Longitude Latitude

Jeram Padang Palm KM 12, Jalan Jelai-Rompin, 72100 55 2° 44' 6.4" N 102° 24' 30.6" E Oil Mill , , Malaysia.

1.6 Palm Oil Mill Output and Approximate Tonnages Certified Figures below are from: • Only from certified supply bases (Y/N). YES • Combining certified with uncertified supply bases (Y/N). NO • If the Mill is receiving FFB from uncertified supply bases outside the audit scope, such uncertified sources is highlighted under the following sections as seen applicable: a. PART 1, Section 1.7 – General Description of Supply Base, b. PART 2: Partial Certification, Section 2.4 – Uncertified Units or Holdings, c. PART 5: RSPO Supply Chain Certification of this report

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

Projected Production from the Actual Production for this Audit Year Projected 12 Months (MT) last 12 Months (MT) 2013 (MT) Forecast Certified in this Report May’13 to Apr’14 May’13 to Apr’14 May’14 to Apr’15 FFB CPO PK FFB CPO PK FFB CPO PK 258,416 56,837 11,325 230,552.5 49,467.56 11,896.37 291,809 55,713 13,309

1.7 General Description of Supply Base There is no change in the supply base. The sampled supply bases were assessed on the RSPO implementation and records maintenance. Random interviews were conducted by auditors at respective sites as to ensure the intended scope of RSPO reached the stakeholders. RSPO P&C 2013, Generic guideline was used during this assessment.

1.7.1 Location of the Supply Base Oil Palm Area Summary Location GPS reference OPP Plantation (Ha) Name Address Longitude Latitude Total Mature KM 7, Jalan Rompon-Jelai, Batang Jelai 73500 Rompin, Negeri N 02° 42’ E 102° 28’ 1454 1387 OPP 1 Estate Sembilan, Malaysia. KM 4, Jalan Simpang Gunong Durian-Bahau, 72400 Pertanian N 03° 4’ E 102° 16’ 681 390 OPP 2 Simpang Durian, Negeri Estate Sembilan, Malaysia. KM 12, Jalan Jelai-Rompin, Jeram Padang 72109 Bahau, Negeri N02° 43’ E102° 24’ 2114 1453 OPP 3 Estate Sembilan, Malaysia. KM 4, Jalan Sg Gadut- OPP 4 Kombok Estate , 71209 Rantau, N 02° 37’ E 101° 59’ 1660 1660 Negeri Sembilan, Malaysia. OPP 5 KM 17, Jalan Karak-Mancis, Renjok Estate 28600 Karak, , N03° 18’ E102° 04’ 258 258 Malaysia. KM 18, Jalan Karak- OPP 6 Sungei Kawang Temerloh, 28500 Lanchang, N 03° 47’ E 102° 14’ 1302 1255 Estate Pahang, Malaysia. KM 22, Jalan Karak-Mancis, OPP 7 Tuan Estate 28600 Karak, Pahang, N 03° 16' E 102° 05’ 1354 897 Malaysia. KM24, Jalan - Ulu , 71409 Pedas, N 02° 38’ E 102° 03’ 922 825 OPP 8 Estate Negeri Sembilan, Malaysia. KM 18, Jalan Bahau- Air Hitam Temerloh, Bandar Sri N 02° 56’ E 102° 24’ 2603 2118 OPP 9 Estate Jempol, 72109 Negeri Sembilan. K/B 506, KM1, Tenang E 102 ̊ 49' N 2 ̊ 30' OPP 10 Voules Estates Station, Jalan Segamat, 1269 1262 85009 Segamat, Johor. TOTAL 13,617 11,505

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

1.7.2 Statistics of the Supply Base and Estimated Tonnes of FFB produced per year Estimated Cycle OPP Oil Palm Plantation Planting Years FFB/Year (MT) (Years) OPP 1 Batang Jelai Estate 34,875 1994-2012 25 OPP 2 Gunong Pertanian Estate 7,204 1984 -2014 30 OPP 3 Jeram Padang Estate 39,231 1991-2008 25 OPP 4 Kombok Estate 42,500 1992-2010 25 OPP 5 Renjok Estate 6,468 2000-2002 25 OPP 6 Sungei Kawang Estate 33,000 1998-2011 25 OPP 7 Tuan Estate 25,000 1998-2010 25 OPP 8 Ulu Pedas Estate 20,972 1987-2014 25 OPP 9 Air Hitam Estate 50,295 1990-2008 25 OPP 10 Voules Estates 32,264 1998-2010 25 291,809 - -

1.7.3 Conservation and HCV Area (Ha) * HCV part of OPP Oil Palm Plantation Conservation Area (Ha) HCV Area (Ha) Conservation OPP 1 Batang Jelai Estate 0 0 No OPP 2 Gunong Pertanian Estate 1.14 0 No OPP 3 Jeram Padang Estate 5 0 No OPP 4 Kombok Estate 3 0.5 No OPP 5 Renjok Estate 85 0 No OPP 6 Sungei Kawang Estate 4 0 No OPP 7 Tuan Estate 6 0 No OPP 8 Ulu Pedas Estate 10 0 No OPP 9 Air Hitam Estate 1.1 0 No OPP 10 Voules Estates 20 0 No TOTAL 135.24 0.5 - * Indicate if HCV area is part of the Conservation Area. If the HCV area is part of the Conservation Area, then “YES” otherwise, “No”

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

1.7.4 Percentage of Planted Oil Palm by different Age Ranges Planting Years by 5 year Ranges OPP 1981-1995 1996-2000 2001 -2005 2006 – 2010 2011 – 2015 Total OPP 1 0 49 38 7 6 100 OPP 2 27.8 2.8 0 7.2 62.2 100 OPP 3 0 60 26 12 2 100 OPP 4 19 37 25 19 0 100 OPP 5 0 64 36 0 0 100 OPP 6 0 36.94 49.77 9.68 3.61 100 OPP 7 0 61.2 37.3 1.5 0 100 OPP 8 14 24 26 27 9 100 OPP 9 0 21.04 46.74 16.11 16.20 100 OPP 10 0 45.17 43.19 11.65 0 100

1.7.5 Calculation of the Number of Production Units (N) to Sample for the Mill N = 0.8 √Y, where “Y” is the number of units, with the result always to be rounded “up” to the next whole integer. Where only a sample of the supply base is assessed, units not previously assessed, or assessed earlier in the certification program, are to be preferred over those more recently assessed For the Mill, how many units make up the production base? Owned estates (Y) N = 0.8 √Y Smallholders (Z) N = 0.8 √Z 10 4 0 NA Explanation as to the selection of estates sampled 4 estates were sampled.

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 Not Applicable

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? RSPOPC-SUM-REPORT.F01 MAY 2014 Page 7 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

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 2.3.1 Does the plan New inclusion of supply base and mill has been updated in Yes include all below time bound plan. subsidiaries, estates and mills?

2.3.2 Is the time bound Existing time bound plan has been included with new supply Yes plan challenging? base and mill.  Age of plantations.  Location.  Mill development.  Infrastructure.  Compliance with applicable law. 2.3.3 Have there been The time bound plan reviewed by CUC and changes such as new Yes any changes since inclusion is updated and accepted. the last audit? Are they justified? 2.3.4 If there have been New inclusion of mill and supply base. No changes on the Yes changes, what targeted time line. circumstances have occurred? 2.3.5 Have there been • Recent stakeholder comment on acquired land in Papua Yes any stakeholder New Guinea on the credibility on land obtained has been RSPOPC-SUM-REPORT.F01 MAY 2014 Page 8 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

comments? raised by OCEAN-Program Officer Collingwood Bay Community Representative, Mr. Adelbert Gangai has sent comments to KLK on a letter dated 5 th December 2013 and kept RSPO & other parties in copy. Currently, KLK has leased a piece of a land to park all the machineries temporarily. As of 09 December 2013, this matter is being handled with RSPO and currently KLK is in progress to reply to RSPO. Wild Asia had been appointed since April 2013 to undertake SEIA assessment and subsequently 1 st meeting at Wanigela district on 25 th Nov 2013 and community and representative attended was recorded. Pending official assessment report. • On PT Menteng Jaya Sawit Perdana IUP for 7,400Ha approval no: 525.26/153/II/EKBANG/2007 dated on 13 February 2007 and Izin Lokasi (IL) is renewed and documented no: 188.45/359/HUK-BPN/2013 dated: 1st August 2013 which includes an approval clause 1a that this IL will remain in force until land swap process is finalised. 2.3.6 Have there been No new acquisition other than Papua New Guinea. Yes any newly acquired subsidiaries? 2.3.7 Have there been No lapses. Yes any isolated lapses in implementation of the plan? 2.3.8 Has there been any No. Yes systematic failure to proceed with the implementation of the plan? 2.3.9 General statement The target to certify all the units within year 2015 remain same. Yes as to progress made since the last audit? 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 The internal control points have included all the requirements to Yes conduct an internal validate the compliance against uncertified units or holdings as audit? If so, has a per partial requirements and assurance statement has been positive assurance generated by KLK has a list of subsidiaries inspected and dated statement been 30 th Nov 2013. produced? 2.4.2 No replacement The company has conducted HCV assessment by Jump Yes after dates defined Consulting in January – February 2012 for all subsidiaries where in NIs Criterion 7.3 the assessment report confirms that there was no replacement of: of primary forest or containing HCV. The new mills and newly • Primary forest. acquired land are still under consultant preliminary report. • Any area identified as containing High Conservation Values (HCVs). • Any area required RSPOPC-SUM-REPORT.F01 MAY 2014 Page 9 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

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

2.4.3 Any new plantings PT Anugerah Surya Mandiri has undergone NPP and published in Yes since January 1 st RSPO website on 1 st April 2013. 2010 must comply with the RSPO New Plantings Procedure. 2.4.4 Any Land conflicts For PT Karya Makmur Abadi, a total land of 4,745.13Ha has been Yes are being resolved compensated. PT Adei Plantation land conflicts around 2,544Ha through a mutually are still in progress of negotiation. 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 None noted.no stakeholder comments or complaints received Yes are being resolved through a mutually agreed process, in accordance with RSPO criterion 6.3. 2.4.6 Any Legal non- None noted. No stakeholder comments or complaints received. 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 Current Supply Bases (estates, Targeted RSPO Palm Oil Mill Country Certification Status plantations, associations) Certification Year as per this Audit • Pelam Estate Serdang, Kedah. • Batu Lintang Estate Batu Lintang 2013 Certified Malaysia • Subur Estate • Buntar Estate • Landak Estate • Kekayaan Estate Paloh, Johor. • Voules Estate Kekayaan Oct 2011 Certified Malaysia • Sg Penggeli Estate • New Pogoh Estate • Fraser Estate RSPOPC-SUM-REPORT.F01 MAY 2014 Page 10 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

• Paloh Estate • Sg Bekok Estate • Ban Heng Estate • See Sun Estate

Paloh, Johor. Supply base consisting of Paloh 2015 Pending Malaysia smallholders • Ayer Hitam Estate • Batang Jelai Estate • Jeram Padang Estate Bahau, Negeri • Kombok Estate Jeram Padang Sembilan. • Ulu Pedas Estate Sept 2012 Certified Malaysia • Sg Pertanian Estate • Sg Kawang Estate • Renjok Estate • Tuan Estate • Changkat Asa Estate Tanjung Tanjung Malim, • Kerling Estate 2013 Certified Malim Perak. Malaysia • Sg Gapi Estate Sungai Buloh, Tuan Mee Selangor. • Tuan Mee Estate 2013 Certified Malaysia • Kerilla Estate Kuala Krai, • Pasir Gajah Estate Kuala Kelantan. By 2013 Pending • Sg Sokor Estate Malaysia

100% independent Tawau, Sabah. smallholders, not to be Mill 1 N/A N/A Malaysia included in the scope of the certification • Pang Burong Estate Tawau, Sabah. • Sri Kunak Estate Mill 2 March 2009 Certified Malaysia • Tundong Estate • Ringlet Estate • Jatika Estate Tawau, Sabah. • Sigalong Estate Pinang March 2009 Certified Malaysia • Pangeran Estate • Pinang Estate • Tungku Estate Lahad Datu, Lungmanis • Bukit Tabin Estate July 2010 Certified Sabah. Malaysia • Lungmanis Estate Lahad Datu, • Rimmer Estate Rimmer July 2010 Certified Sabah. Malaysia • Sg. Sibalukan Kinabatangan, • Bornion Estate Bornion July 2010 Certified Sabah. Malaysia • Segar Usaha Estate • Lekir Estate • Changkat Chermin Estate • Raja Hitam Estate Changkat Manjung, Perak. • Glenealy Estate 2013 Certified Chermin Malaysia • Serapoh Estate • Kuala Kangsar Estate • Allagar Estate

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

• Kebun Malindomas Perkebunan, Berau, Kaltim. Berau 1 • Kebun Hutan Hijau Mas, By 2014 Pending Indonesia • Kebun Jabontara Ekakarsa Steelindo Audited on 30/9- Belitung, • Kebun Steelindo Wahana Wahana By 2013 04/10/2013. Indonesia Perkasa Perkasa Pending. • Kebun Parit Sembada Parit Belitung, • Kebun Alam Karya By 2014 Pending Sembada Indonesia Sejahtera Riau, Sumatera, Mandau • Kebun Mandau Oct 2012 Certified Indonesia Approved by RSPO, Riau, Sumatera, Nilo 1 • Kebun Nilo Timur By 2013 pending certificate Indonesia issuance. Approved by RSPO, Riau, Sumatera, NIlo 2 • Kebun Nilo Barat By 2013 pending certificate Indonesia issuance. Tapung Riau, Sumatera, • Kebun Sekarbumi By 2013 Certified. Kanan Indonesia Alamlestari • Kebun Basilam Langkat, • Kebun Gohor Lama Gohor Lama Sumatera Utara. By 2014 Pending • Kebun Tanjung Beringin Indonesia (New inclusion) Kebun Padang Brahrang Kebun Bukit Lawang Padang Sumatera Utara. Kebun Tanjung Keliling By 2014 Pending Brahrang Indonesia Kebun Bekiun Kebun Maryke (New Inclusion) Kebun Karya Makmur Abadi Kalimantan MAP March Kebun MAP Tengah. By 2015 Pending 2013 Kebun Menteng Jaya Sawit Indonesia Perdana 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. Overall findings are satisfactory and a minor non-compliance raised has been closed with an assurance statement. The 6 estates which have been excluded from time bound plan previously is included now with a target date. Out of the two mills in Kalimantan Timur, a new palm oil mill named Berau 2 POM is yet to commission. Stabat POM in Medan & KMA POM in Sampit has not commissioned and will be included in the time bound plan once ready. The company has also made decision to include Paloh Mill into certification by year 2015. Mill 1 which consists of 100% of independent smallholders will be shut down within 3 years from 2012. For final c onclusion, please refer to table 3.1.

2.6 Partial Certification Audit Agenda Date Location Agenda 01/07/2014 Jeram Padang POM Documentation review

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

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.

3.2 Audit Team Lead auditor: Mahaswaran Maliyapan Team member 1: Selvanathan Grapragasem Team member 2: Muhd. Jamalul Arif Team member 3: Atiqah [ Trainee Auditor ]

3.2.1 Qualifications of the Lead Auditor Requirement Qualifications A minimum of post high school (post-secondary Certified ISO 14001:2004 and OHSAS 18001:2007 Lead school) training in either agriculture/forestry, Auditor. environmental science or social sciences; At least 5 years professional experience in area of More th an 15 years of wor king experi ence in various work relevant to the assessment (e.g., palm oil industries . Fully trained in similar agriculture certification management; agriculture/forestry; ecology; social programmes such as RSPO, SCCS and RFS2. science); Training in the practical application of the RSPO Invol ved in RSPO assessme nt since 20 12 . Member of CUC criteria, and RSPO certification systems; RSPO audit team. Involved in audits conducted in Mal ay sia and Indones ia. Successfully completion of an ISO 9000:19011 lead Co mpleted ISO 90 01:2008, ISO 14001:2004 and OHSAS auditors course; 18001:2007 lead auditor course in June 2007. Training in the practical application of RSPO Invol ved in RSPO assessme nt since 20 12 . Member of CUC certification systems. RSPO audit team. Involved in audits conducted in Mal ay sia and Indones ia. A supervised period of training in practical auditing Invol ved in aud its condu cted in for many different against the RSPO criteria or similar sustainability companies in Malaysia and Indonesia. standards, with a minimum of 15 days audit experience and at least 3 audits at different organizations. RSPO endorsed lead auditors course. Co mpleted RSPO Lead Aud it or tr aining in Oct 2013 Signed code of conduct. Yes General knowledge of: Yes • RSPO P&C standards. Yes • CUC organizational structure. Yes • CUC quality systems. Yes • Lead auditor role. Yes • Report writing. Yes • Stakeholder consultation. Yes RSPOPC-SUM-REPORT.F01 MAY 2014 Page 13 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

• Certification decision process. Yes • RSPO SCCS program manual. Yes • CUC filing systems. Yes • Correct use of RSPO trademarks. Yes • History and objectives of RSPO. Yes • CV available. Yes Completion of CUC RSPO lead auditor training. Yes

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

Fluent in main local Selvanathan Grapragasem Fluent in both English and Bahasa Malaysia languages and English. Muhd. Jamalul Arif Fluent in both English and Bahasa Malaysia Atiqah Fluent in Bahasa and English

Field working Selvanathan Grapragasem SA 8000 advanced auditor, QMS, EMS & OHSAS experience in the palm Lead Auditor, Working experience in oil palm oil sector, or a plantation. demonstrable Muhd. Jamalul Arif Involved in RSPO auditing since November 2010. equivalent. Auditing experience in GMP and Globalgap. Atiqah [ Trainee Auditor ] Graduated on geo-science.

Good agricultural Selvanathan Grapragasem SA 8000 advanced auditor, QMS, EMS & OHSAS practices (GAP), Lead Auditor, Working experience in oil palm integrated pest plantation. management (IPM), Muhd. Jamalul Arif Involved in RSPO auditing since November 2010. pesticide and fertilizer Auditing experience in GMP and Globalgap. use. Atiqah [ Trainee Auditor ] Attended In-house GAP trainings.

Health and Safety Selvanathan Grapragasem SA 8000 advanced auditor, QMS, EMS & OHSAS auditing on the farm Lead Auditor, Working experience in oil palm and in processing plantation. facilities. (For example Muhd. Jamalul Arif Involved in RSPO auditing since November 2010. OHSAS 18001 or Auditing experience in GMP and Globalgap. occupational. Health Attended ISO 9001 awareness trainings. and safety assurance Atiqah [ Trainee Auditor ] system).

Workers welfare issues Selvanathan Grapragasem SA 8000 advanced auditor, QMS, EMS & OHSAS and social auditing Lead Auditor, Working experience in oil palm experience. (For plantation. example with SA8000 or Muhd. Jamalul Arif Involved in RSPO auditing since November 2010. related social or ethical Auditing experience in GMP and Globalgap. accountability codes). Atiqah [ Trainee Auditor ] Nil

Environmental and Selvanathan Grapragasem SA 8000 advanced auditor, QMS, EMS & OHSAS ecological auditing. (For Lead Auditor, Working experience in oil palm example experience plantation. with organic agriculture, Muhd. Jamalul Arif Involved in RSPO auditing since November 2010. ISO 14001 or Auditing experience in GMP and Globalgap. RSPOPC-SUM-REPORT.F01 MAY 2014 Page 14 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

environmental Atiqah [ Trainee Auditor ] Nil management systems).

Economic issues. Mahaswaran Quality, environment and OHSAS Lead auditor. Working experience in various industries. Auditing since 2007. Involve in RSPO Audit since 2012. Selvanathan SA 8000 advanced auditor, QMS, EMS & OHSAS Lead Auditor, Working experience in oil palm plantation. 3.3 Audit Methodology 3.3.1 General Overview The Audit was carried out in conformity with the procedures as laid down in the CUC Procedure Manual and the RSPO Program Manual for the auditors and Certifier. During the Audit the qualified CUC auditors used the RSPO standard as endorsed for the country in which the audit took place and recorded their findings. Workers and local communities were interviewed and evidence sought to confirm ongoing compliance to include: • Chemical stores. Storage, MSDS leaflets, Herbicide mixing areas, PPE, Ventilation, Security. • Field inspections. Herbicide application programs. Harvesting sites and efficiency. Fertilizing operations. SOP’s. Soil maps. Land preparation. Ground cover. IPM. First aiders and boxes. Ground cover. Soil erosion. Field observations of all operations. • Worker interviews. OSH. Sexual, religious, racial harassment. Pay and contracts. Child labor. First aid. Awareness. • 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.

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

3.3.2 Assessment agenda for this Audit Date Location Auditors Main activities 08.30 Opening meeting Chaired by the audit team leader Jeram • Introduction by team leader Padang POM Mahas • Presentation by respective managers Office • Presentation of Palm Oil Mill source of FFB by respective Managers • Re view the status of previous non -conformities Supply Chain Certification Assessment of the POM (RSPO SCCS)

Mill inspection 30/06/2014 • Workshops [Mon] • Stores • POM application Mahas • Document review Jeram Jamal Padang POM Selva Field operations Atiqah • Worker interviews • Housing • Medical • Schools • Local communities • Environmental Field operations. • Worker interviews

• Chemical stores Jeram Mahas • Workshops Padang Selva • Housing Estate • Medical • Schools • Local communities 01/07/2014 • Environmental [Tue] Field operations. • Worker interviews

• Jamal Chemical stores • Batang Jelai Atiqah Workshops • Estate Housing • Medical • Schools • Local communities • Environmental

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

Field operations. • Worker interviews

• Chemical stores Mahas • Air Hitam Workshops Selva Estate • Housing • Medical • Schools • Local communities 02/07/2014 • Environmental [Wed] Field operations. • Worker interviews

• Jamal Chemical stores • Kombok Atiqah Workshops • Estate Housing • Medical • Schools • Local communities • Environmental Auditor’s preparation for closing meeting. Additional field visits and meetings with managers if necessary. Closing meeting to be chaired by the audit team leader Jeram • Welcome and introduction by the team leader 03/07/2014 All Padang POM • Presentation of findings by the audit team [Thr] auditors Office • Questions and answers • Final summary by team leader

End of assessment

PART 4 ASSESSMENT FINDINGS

4.1 Lead Assessor’s Summary and Recommendation for Certification The mill and supply bases visited (as per the above Tables 1.5 and 1.7.1) were assessed at field, office, facilities, stores and a document review was carried out in accordance to the RSPO principles and criteria. The audited RSPO management system’s documentations seen with minor changes that due to internal and external influenced factors that in relation to scope of certification. Specific evidence was recorded for estates and mill. Interviews with Estate Managers, Mill Manager, members of workers union and committee took place in both formal and informal environments and 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. Under partial certification rules, there is a time-bound plan established. For further clarification on Partial Certification, see PART 2 above. The management continually monitoring the established KPI / objectives that significantly rules the achievement of company’s corporate policy on RSPO. The mill is fully verified for RSPO SCCS system verification and it is found to be in full compliance. See PART 5 below. It is therefore the recommendation of the lead assessor that: • A certificate of compliance is maintained. Signed:

Name: Mahaswaran Maliyapan Date: 01/08/2014

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

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

Principle 1: Commitment to Transparency Criterion by Requests made by stakeholder were responded to and all these are well Audit Summary documented. Adequate information available for confidential information that being listed as publicly available. 1 Minor NCs issued. ASA 2 1.1 There are policies that are available at the mill where it’s being placed at the mill office and notice board around the mill. It includes the sexual harassment and violence policy, right to freedom, environmental, child employment, quality, PPE, equal employment opportunities etc. SOP for stakeholder request for information is available in SOP 1, rev 2 dated 1/3/13. Here, requests are recorded and being provided in appropriate languages and forms, once completed, stakeholders shall then acknowledge the completed action and response.

SOP for consultation & meeting, and complaint & grievance are available too. Stakeholder meeting on 17/6/14, Mr Rah Rah, Tok Batin Kg Orang Asli, request information from the management on when rat baiting is going to be done. This is to ensure the safety of children in their village. Mr Nathan from management tells them that later, any rat baiting activity will be tell earlier from management. In that meeting too, Mr Murugayah ask on how chemical container being dispose. Mr Nathan reply by giving information on how they dispose the chemical container.

Most of the request is regarding house repair. The latest request is on 6/6/14 by Mr Chandran. He asks for repair on toilet. Request is being attended promptly on 6/6/14 by replacing the necessary damage. Copy of original land title is available at the office. Jeram Padang POM is a plot in lot 1130 with 57790 m². The grant number is 169204. Category for this land is industrial. ASA 2 1.2 There are policies that are available at the mill where it’s being placed at the mill office and notice board around the mill. It includes the sexual harassment and violence policy, right to freedom, environmental, child employment, quality, PPE, equal employment opportunities etc. Copy of original land title is available at the office.

Jeram Padang POM is a plot in lot 1130 with 57790 m². The grant number is 169204. Category for this land is industrial. OSHA manual is available in order to comply the requirements such as Occupational Safety and Health Act 1994, Factories and Machinery Act 1967, Pesticides Act 1974, Scheduled Waste Disposal, Code of Practice on Prevention and Eradication of Sexual Harassment in the Workplace, and Principles and Criteria of RSPO relating with Occupational Safety and Health.

Records on HIRARC are available and the latest assessment is done on 20/6/2014. OHS programs for 2014 are available. Latest training is on 27/6/14

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

which is the training on basic occupational first aid. EIA is available and last update is on 25/6/2014. The EIA objective is to mitigate all polluting activities. Pollution prevention plan is available and last update on 25/6/2014. For FFB intake process, hazards stated are air pollution and noise. For steriliser process, hazards are water pollution and noise.

The mitigation measures are to do training on SOP and noise monitoring. SOP regarding stakeholder engagement/negotiation is available. Latest revision is on 1/3/2013. Continuous improvement plan for 2014 is available. The improvement includes  To improve labor quarters  To improve staff quarters  To improve staff / labor quarters security  To improve the scrap iron wall  To promote health awareness among workers.

Public summary of certification assessment report is accessible in the RSPO website. ASA 2 1.3 A Minor Non-Conformity issued against criterion 1.3.1: There is no written policy on 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. Principle 2: C ompliance with Applicable Laws and Regulations Criterion by The mill and estates have demonstrated compliance to all applicable local, Audit national and international laws with the exception of the implementation of the USECHH 2000 Regulations and the Scheduled Wastes Regulations 2005. Summary 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 estate. ASA 2 2.1 In the mill, a list of applicable laws and regulations are available. The matrix of List and Summary of Applicable Laws and Regulations contains information regarding document, regulatory authority, requirements, current status and remarks. Person in charge is Mr Arif. There are also lists of permits / license available and the person in charge for all permits and license is Mr Kannaki. It includes softener vessel NS PMT 2090, Vacuum Dearator Vessel NS PMT 2091, Diesel, DOE, etc.

Sighted license from MPOB where their license due date is on 30/9/2014. There is SOP for legal compliance in SOP 2, rev 2/0 date 1/3/2013. All applicable permits were maintained & monitored. Copy of original land title is available at the office. Jeram Padang POM is a plot located in the Jeram Padang estate land in lot 1130 with 57790 m². The grant number is 169204. Category for land use is commercial / industrial.

Estates maintains a list of laws applicable, among sighted were: -OSHA and regulations 1994 (Act 514) -Factories and Machinery Act with regulations (Act 139) -Pesticides Act and Regulations (Act 149) -Poison Act and Regulations 1952 (Act 366) -Kementerian Perdagangan. -MPOB

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

-Road Transport Act 1987 (Act 333) -Employees Social Security Act and Regulations (Act 4) -Food Act and Regulations (Act 281) -Industrial Relations Act and Regulations (Act 177) - Trade Union Act and Regulations -Employees Provident Fund Act 1991 -Human Rights Commission of Malaysian Act. -Wetlands and climate Change 1999 The UN Convention on Biological Diversity -Stockholm Convention On Persistent Organic Pollutants (2001)

Evidence of method to update the applicable is through website. OSH and regulations 1994 (Act 514) has been updated through website of Department of Occupation Safety and Health Malaysia. The implementation of relevant laws were made through Management and communicated to concerned parties.

List of laws available included name of laws, regulatory authority/summary, and license/permit/certificate and current status. To carry out periodic review and evaluation on the Laws & regulations list to ensure that any new/addition as well as changes and amendment are captured and update, through the following manner. 1) Enquiring the laws books publisher 2) Communication with law/enforcement officers ASA 2 2.2 In Air Hitam estate, 4 land titles, Land title no. 71052 lot163, 10494 lot80, 11481 lot84, 4137 lot163. The total of area is 2640ha. Verify from boundary stone survey map, they mark the Boundary stone into the map for boundary stone point. The record for monitoring the boundary stone is available. There no land dispute or conflict. There no land conflict, Land title is starting from the 1908. SIA issue 01-04-2012 includes Flow, Hazards, Level of negative social impact and Mitigation measures. ASA 2 2.3 There is no customary right in entire Jeram Padang Complex. Principle 3: Commitment to Long-Term Economic and Financial Viability Criterion by The annual budget and 10 years projections for the mill and estate that Audit Summary details revenue and costs are available. Replanting programme for the estates for the next five years is also available. ASA 2 3.1 In the mill, documented production estimation for crop is available for year 2013 and 2014. From October 2013 up to September 2014, estimated production of FFB in m tonnes is 258,066. Kernel production in m tonnes estimated amounts is 13,421. CPO estimated production in tonnes is 56,776. There are details expenditure estimates for financial year 2013/2014. It includes capital expenditure and indirect cost. In Batang Jelai, there is no scheme smallholder. Total area in the area statement is 1454Ha. Matured area is 1387Ha, no immature, 67Ha in course of replanting and 4Ha for nurseries. This estate with both rubber and oil palm plantings. Sighted the crop projection for financial year ending – 9/2014, with yield per hectare 25.14MT. Replanting calendar sighted for 5 years, 2010- 2015. There is no replanting or conversion from rubber to oil palm until 2015. The oldest palm captured is 90A/70Ha and the youngest matured palm is 2007A/86Ha. In Air Hitam estate, sighted it is fully matured area – 2118 Ha and the current RSPOPC-SUM-REPORT.F01 MAY 2014 Page 20 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

yield per hectare is 24 MT. For the KLK there is a KLK Sustainability Department to oversee all the RSPO implementation and continuous RSPO plan. Annual financial plan 2013/2014 “Financial Year Estimate 2013/2014” sighted. Data verified from Ladang Ayer Hitam Crop, Capital & Revenue Expenditure Estimates” for year ending 30 th Sept 2014. Year Crop Production 2014/15 51, 017 2015/16 52, 803 2016/17 54, 331 Estate has a 5 years future replanting programme record that shown programme from 2014 – 2019. Programme can be summarized as below:

Financial year Field Total Ha Proposed Ha 2014/15 1990A 27 27 1991A 102 102 1993C 21 21 2015/16 1994A 35 35 1994C 23 23 1995A 59 8 2016/17 1993A 57 57 1995B 48 48 2017/18 1994B 135 135 2018/19 1995C 32 32 1995D 28 28

Last conversion of land from rubber to oil palm on 2008 on field. i. Field no. PM2007A - 86 Ha areas. ii. Land title sighted no. 10494 there is no condition for this land therefore no conversion land use needed. Kombok estate consisted of 3 divisions as mentioned below with rubber and oil palm planted. Total area for oil palm in the area statement is 1660HA with all matured palms. Replanting calendar sighted for 2014/15 FY to 2018/19 FY. Sighted a memo dated on 06/02/14 from the Estate Snr Manager to GM sighting on future replanting program and proposal for Kombok Estate. MD 94A/28 KAA – This field was AAR trial area, very high percentage of Ganoderma infection, 16.75% of palms were lost due to Ganoderma [current stand per ha = 110]. The yield cannot sustain and has dropped to 18.55MT in last FY. The proposed replanting is in 2015/16 [OP to OP]. MD 92B/58 AA – High percentage of Ganoderma infection at 11.12%, current stands per ha at 109. Monitoring is required for this field and expected for replanting after 2015.  Home division [704HA]  Ulu Sawah [675HA]  [281HA]  Sighted the crop projection for 2013 to 2023 for all the 3 divisions.  2014: 44426MT  2015: 44496MT  2016: 46356MT  2017: 47878MT Principle 4: Use of Appropriate Best Practices by Growers and Millers Criterion by The mill and estate have a complete set of SOPs which is being strictly Summary Audit adhered to and continuously monitored. Soil fertility is maintained along with

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

soil erosion prevention that continuously carried out. IPM implemented in all the estate and the use of chemicals are in accordance with the regulations. There is a comprehensive OSH policy implemented throughout the estate and mill. Trainings are being carried out as per the Annual Training Plan. A Minor NC issued. ASA 2 4.1 In the mill, SOP on the storage and Issue of security seal, lubricant store, diesel used, laboratory, Boiler, engine room, reception station of FFB (Rev 2012). Based on the SOP mill also has develop safe operation procedure. Palm Oil Mill has 2 types Manual Standard of Procedure (SOP) & Safety Operation Procedure (SaOP) document was maintained and well implemented. Standard Operation Procedure includes: 1. Weighbridge 2. Loading Ramp 3. Sterilizer Station 4. Hoisting & Threshing Station 5. Empty bunch Hopper 6. Press & digester Station 7. Clarification Station 8. Depericarper Station 9. Nut & Kernel Station 10. Boiler Station 11. Engine Room 12. Raw Water Treatment Plant 13. Effluent Treatment Plan For Supply chain requirement has been sighted in the SOP of No outside crop for Jeram Padang POM. Sustainability date on the 01.03.2013.SOP consist information as follow. SOP Receiving material. Processing material, Despatching material. The mechanism to ensure that of implementation sighted thru internal audit. The purpose of the internal audit is to verify records and procedure against specific requirement and relevant standards requirements. Each new worker is mandatory to have SOP & SaOP Training in initial before started to work. Internal inspection in field is carried out by OSH Committee together with the Safety Meeting. Record of the internal audit has been sighted. Internal audit has divided into 3 type of internal audit. 1. -OSH audit – 20/06/2014 2. -RSPO audit. 3. -Internal audit department audit. This 3 type of audit is to ensure that estate and mill comply with the company policy. In estates, sighted the GAP policy no GP/AGRIC/OP, 01-01-2007. GAP manual is covering operations from land clearing, replanting, harvesting, up keeping, Roads & Drains. Estate has furnished SOP for all stage of operations and in accordance with RSPO requirements issue no. 5 dated 01-01-2014. The Sop is covering operations from land clearing, safety of spray equipment for spray operation, workshop workers, water treatment plant, chemical handlers, replanting, harvesting, buffalo handling, fertilizer applications, up keeping, Roads & Drains ETC. For the replanting show on the Group policy No: GP/AGRIC/OP7, issue 21 June 2005. SOP is kept and will be updated periodically. Document issuance sighted for Master list of document dated on 01-01-2014. Record of the internal audit has been sighted. Internal audit has been conducted on the 14-15 of April

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

2014.There were several non-conformities have been raised. ASA 2 4.2 Sighted the SOP 4.0 dated on 01/03/2013 for "Soil Erosion & Fertility and Road Maintenance". The GAP starts from the survey by Agronomist with recommendation for fertilizer application. The Agronomist and Estate Manager to review the applied practices periodically [at minimum half yearly]. Yield improvement stated in "Oil Palm Manuring Recommendations for 2013/2014". 1). Sighted the fertilizer application records for Jan'14 - June'14. 2). For June '14 sampled: Field HA Fertilizer Rate[KG] Bags Date type 99A/118 153 Ammonia 1.75 360 26-28/06 Chloride 96F 80 Ammonia 2.00 130 30/06 Chloride 97B 47 Ammonia 1.75 132 24 -25/06 Chloride Sighted the AAR "Oil Palm Manuring Recommendations for 2013/2014" - LYA/Advisory/2013/JeramPadang/report, 14/06/13. Analysis and recommendation was carrying out by Apply Agriculture Resources (AAR), a subsidiary laboratory under KLK’s Group. Leaf analysis will carry out on annual basis whereby soil analysis is depending on the agronomist decision. Normally soil sampling conducted every 2 -3 years. Leaf analysis results and nutrients levels documented in the AAR report. Result shows that some samples shown deficiency symptoms in K element consist of 8 samples is low and 19 samples is very low noted in field no. 1PM94A1, 1PM95H3, 1PM97B1, 1PM99A1, 2PM95G1 & 2PM96E1. This result will reflect their manuring program at the noted field. Sighted fertilizer type MOP was recommended as increase from 1.75 kg/palm to 2.00 kg/palm compare with others normal field. Details of leaf and soil analysis conclude that estate nutritional status based on the 3 Years means was still below optimum hence moderately high to high rate of fertiliser will be recommendation. Company has a program for application of POM by products such as EFB, Decanter Cake and ECOMAT. Empty fruit bunch in the field to replace potassium, moisture retention and as supplement from inorganic fertilizer. For 2013/2014 programme, sighted field no. 95H/168 – 168 MT EFB was being applied in the field until June 2014. Field no. 97B/47, 99A/153 & 99B/51 – Applied 219 MT of Eco mat. ASA 2 4.3 SOP 4.0 (01-03-2014): Soil erosion & fertility and road maintenance documented. Soil type has been carried out by Agronomist and sighted the report dated on 17-18/06/2013. • Ulu Sawah estate : soil series is Munchong • Main division : soil series is Malacca • Mantin estate : soil series is Rengam Soil map (AAR/17/2012), for all 3 divisions has been established. Sighted the last GPS mapping 10/2000-Jm, Kha. In the matured field, sighted the establishment of Nephrolepis in the inter-rows and maintaining proper frond stacking. In Batang Jelai, in view of the low annual rainfall with consecutive dry months coupled with large proportion of marginal soils, soil moisture conservation practices should be given emphasis to improve the soil moisture level. As such RSPOPC-SUM-REPORT.F01 MAY 2014 Page 23 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

appropriate moisture conservation measures includes wider spread of pruned fronds across exposed bare soils, maintaining ground vegetation on the interrows and possibly EFB mulching. Generally there are 6 type of Soil in the estate area.as follow 1. Durian 2. Malacca 3. Malacca/Durian associate 4. Terrace alluvium 5. Local alluvium 6. Unclassified. Soil map (AAR/04/07/2012) identified what the soil types in the estate develop by AAR Laboratory. No fragile soil available in the estate. No fragile soil in the estate. Slightly slopes area in field no. 1PM1990B which is not exceeding the 25 degrees slopes as according to the company SOP. Road maintenance program for 2013/14 available for all field areas and line sites. Completed maintenance work on field no. PM93A (March), PM94A (April) & PM96F (March & April). Road maintenance is carrying out on annual basis. ASA 2 4.4 In the mill, water management plan has been sighted in the SOP 5.Date on 01/03/2013. Mill water is coming from Muar & Temarong River that near to the mill area. Water is treated and used for processing operation. (Latest water analysis date on 29/04/14 using parameters as pH, COD, BOD, TN, AN, TS & SS by TQCC Laboratory). Waste water is treated in six (6) POME aerobic & anaerobic pond system reserved and is applied as land application to Jeram Padang Estate to maintain the soil fertility. (Latest water analysis date on 01/03/14 parameter used as maximum BOD as per DOE limit 50 ppm) – 3 ppm. Domestic water also was using treated river water. Latest analysis result date on 05/03/14 includes parameters as Iron, Fluoride, Magnesium, pH, Turbidity, Aluminium, Free chlorine & E – Coli. Monitoring of the water usage per FFB is recorded in the water treatment record for May – 1.01 and March – 1.04. In Jeram Padang estate, there is a SOP established [SOP -5.0] dated on 01/03/2013. Water management plan is includes Gazette river bank/Water catchment pond and Water for consumption. Gazette river bank is managed accordance to SOP 11.0 HCV management plan which is 1. to set aside and surround a 20m riparian zone, 2. to erect proper signboard at strategic point along the boundary to riparian zone to prevent illegal activities, 3. to paint in red & white band on frond bordering the riparian zone. 4. Spraying of agrochemicals and manuring activities is not allowed 5. To ensure no bund/weirs/dams that spans the entire main river. 6. To perform monitoring of river water quality. Water for consumption consist of: 1. To ensure water pump house facility is maintained. 2. To ensure correct dosage of water treatment chemicals. 3. To perform periodic monitoring of the treated and untreated water quality. (water sampling program) 4. To ensure adequate capacity of water reservoir including that for emergency use. Water analysis result sighted dated on 14/04/14 for two sampling points as: Parameters Water Catchment (Point no. 6) Sg. Muar (Point no. 8) Coliform 500 Not detected

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

E - coli 14 Not detected *exceed the law requirement <100 - River water Parameters Point no. 9 (Incoming) Point no. 10 (Outgoing) DO 95 94 BOD 2 3 COD 11 13 SS 8 26 pH 7.7 7.5 Remarks Clean Clean

ASA 2 4.5 Implementation of IPM is based on the SOP no 7.0 integrated pest management Date on 01.04.12.That contain information regarding on the implementation of IPM, including Spraying, Trunk injection Rat baiting. There is no IPM plan available as the estate not infected with any pest but with very little / rare rat attacks. However the barn owl census record well maintained. Herbicide application records seen for circle spraying. Seen records for Jan - Mar2014 in field PM95A/76, PM98/135 and PM03A/114, Glyphosate, Ally, with details of man-day, labour cost, hectare treated, labour cost per ha, a.i.. (lit), material cost and total cost, with status. IPM programme includes maintaining the barn owl and planting beneficial plant such as Turnera and Antigonon. Rat attacks are monitored by Rat census conducted when attack was sighted at the FFB. Latest census for March 2014 – Not exceed the 5 % outbreak. SOP 7.0 titled “Integrated Pest Management” was clearly implemented in the field. Total 158 units of barn owl was maintained in the field with occupancy rate is 78%. In any case of outbreak, Ebor (warfarin) baits will used as last application method. Training on SOP for Semi mechanical manuring gang, Pest & disease, sprayers & RSPO document on 25/06/14 attended by 10 workers. Attendance list was verified. ASA 2 4.6 Annual agrochemicals recommendation from AA (Applied agricultural resources SND. BHD) for 2013/2014. SOP 2: Safe use of agrochemicals, 01-02- 2012, mentioning on justification of agrochemicals used and Register of chemical hazardous to health. Herbicide application records seen for circle spraying. Seen records for Jan – June 2014 in field Glyphosate, Ally, RSPOPC-SUM-REPORT.F01 MAY 2014 Page 25 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

Cypermethrine with details of man-day, labour cost, hectare treated, labour cost per ha, a.i.. (lit), material cost and total cost, with status. Records of pesticides use (including active ingredients used and their LD50, area treated, amount of active ingredients applied per ha and number of applications. Major pest identified is the rhinoceros beetle and pesticide use to control is Cyper H20. Pest only detected at immature field (23 Ha) in small quantity. Record shown that record of usage is only depends on the outbreak of census. Class 1 chemical is used according to the law and census conducted. Estate was well implemented beneficial plant to control the population. Record of Monocrotophos updated on May 2014 as below: Date Field Litre a.i/ha 03/05 1995A 4 0.75 05/05 2005A 4 0.74 Application of any chemical products in the field is under controlled and only can be carried out by qualified workers which have attended certain training. Estate has 7 sprayers who are specialized in handling the chemical. Training attend by sprayers include date on 16/04/2014 title “SOP Training for Cypermethrine Sprayer” attended by Minah (sprayer), Date on 06/01/2014 title “SOP Training for New Sprayers” attended by 11 personals. All attendance lists are verified. Storage of chemical is in appreciating manners, well ventilated. Powder is above the liquid. All sprayers are provided with proper PPE such as mask, apron, gloves and rubber boot. Mixing of the chemicals was done by one Mandor at mixing area provided by under control and secure environment. Spraying was using the proper equipment (knapsack) and well maintained. All chemical activities are accordance to the company procedure and good agriculture practices. In the mill, waste management was included in EIA and Pollution Prevention Plan documents. Waste includes scheduled waste (SW) as: 1. SW410 – Used gloves & rags 2. SW409 – Chemical containers 3. SW322 – Hexane 4. SW306 – Hydraulic oil 5. SW305 – Lubricant oil. License collector is Lung Seng Chemicals Sdn Bhd. In estates sighted, SW 305, SW 306 and SW 410 are the schedule wastes that sighted in the Inventory List [Peraturan 11 - Jadual Kelima]. Sighted for Mac 2014 records, SW 305 [680L]. Sighted the consignment note for approved collector, A and C technology. [Ref 001350] dated on 29/05/2014 for SW 410. SW collected by OLST Petro-chemical Sdn Bhd. Record of inventory available includes used oil, used rags & contaminated filter. Last collected on 20/06/14. Annual medical surveillance has been conducted as per recommended by the CHRA Report. For last year, 11 workers were sent to medical surveillance includes workers from lab attendance, foreman, kernel plant operator, store operator & kernel plant operator. On 13/06/2014, 7 workers were sent for medical surveillance as identified from the CHRA assessment. Report still under progress. Medical surveillance is carried out by Clinic Raja & Surgery. Last year MS checked; Oslesa a/p Ganapathy – chemical exposure with Sodium hydroxide 1% is found fitted to work and allowed to still same job but using PPE. Records clearly shows of no pregnant or breast-feeding women

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

assigned for pesticides works. ASA 2 4.7 In the mill, sighted that occupational Safety & Health policy date on 10.01.2005 which was approved by group plantation director. OSH plan has been develop for 2014. That consist as follow: Month Program July Safety meeting Engine room SOP August Workshop Training Sept Eco mat SOP Oct Safety meeting Nov Effluent treatment plan Mill OSH visit Dec Oil room SOP Management review Every plan have person in charge to make sure the implementation. Objective for 2014 is to improve safety awareness among workers and create safe working environment for RSPO compliance. Target for 2014, safety knowledgeable workers by end of year 2014. Action plans includes: Having a safety assembly at every first day of the month to increase workers safety awareness. Provide necessary training such First aid Training, Machinery SOP training & health care seminar. To place additional safety signboard in mill. All station in the mill was conducted hazard identification, risk analysis and risk control measure taken. Latest HIRARC revised on 20/06/2014 conducted by Arif Afifi – Engineering assistant. All workers were trained according to their work station. Sample training for Taufik & Murugan (Nut Cracking Station) training title SOP of Nut Cracking Station on 26/06/14 by S. Mathi. PPE issuance records / logbook sighted for safety shoes, goggle, safety helmet, and respirator mask and nitrile glove. Safety shoes are provided to all workers every 6 month once. Verified from PPE receiving record, Mr. M. Sanggali Veeran (fireman) received PPE such helmet, ear plug, safety shoes, safety goggle and jacket. Last received on 24/06/14. HIRARC is consist of hazard identification (type of work activity, hazard & effect) Risk analysis (Existing risk control, likelihood, severity & risk) & Risk Control (Recommended control measures & PIC). Mill Manager Mr S. Teyagarajan is person who is responsible for the monitoring and implementation of the safety requirement. Safety and health committee meeting has been conducted every month. Last conducted meeting is on the 20/06/2014. There is several issue has been raised as additional spotlight at water treatment plant and permanent ladder at shell conveyor station. All the issue was take action by management. Emergency procedure is sighted in the emergency response plan. Complete with emergency contact number .Emergency procedure. Training for first aider is available. Last conducted first aid training is on the 27.06.2014.That attended by 18 people. There is a record maintained for mini First Aid Kit to workers on-site, distribution list dated on 01/04/2014. Sighted Workmen compensation for foreign workers (SPPA) ref no. (JTK0683507). The policy No. LWX/93021448/13/01IPO validity date on 01/02/14 – 31/12/2015 for Karthik Ghanamoorthy. 29 workers are included in the group insurance for foreign workers in the mill. RSPOPC-SUM-REPORT.F01 MAY 2014 Page 27 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

Local workers are covered by SOCSO. Sighted deduction on every payslip of local workers. All accidents is handled according to the national OSH department (JKKP) includes reporting any accident case, investigation and calculate of LTA. JKKP 8 (I & II)/(IV) for 2013 summarized as 2 cases reported includes total man day lost is 178 Days. In estates, have a year plan for OSH programme 2014 consists of training programme from January – Dec 2014. Also includes for health department visit to talk about disease and blood test for workers. Training was done until June 2014 includes: 1. Harvester Training – 21/01/14 2. Safety First Training – 12/02/14 3. Sprayer Training – 16/04/14 4. Manuring Training – 14/05/14 5. Safety work at workshop – 11/06/14 Objective for OSH for 2014 is includes: 1. To reduce the accident case by 50% and motorcycle accident to 0% 2. To conduct refreshment training for all type of works. 3. To provide proper transport for workers to enter to field. 4. Increase the signage at the street. 5. 100% to comply OSHA regulation (NADOPOD, USECHH & JKKP) OSH committee in estate level is head by manager, Mr. Nathan and PIC is the secretary, Mr. Elangovan. Committee is participated by 4 representative from employer and 4 personnel from workers. Meeting will be held in every 3 months. OSH meeting is the medium to workers and employer can discuss about OSH issue to take further action by management, if any. Latest meeting held on 10/04/2014 attended by 15 personals. Estate has a qualified HA in estate area Mr. Elangovan A/L Govindasamy (reg. no Q 1917) – Grade 01. Latest first aid training on 20/05/2013. Training programme in 2014 has first aid training planned on Sept 2014. Estate workers are covered by two type of insurance: SOCSO –For local workers. Each local worker is entitled to contribute to SOCSO based on checked pays lip. Foreign workers – Group insurance consist of 20 workers from India, Nepal, Indonesia & Bangladesh by AXA insurance the policy No. LWX/93021448/13/01IPO validity date on 01/02/14 – 31/12/2015. JKKP 8 (I & II)/(IV) for 2013 summarized as 5 cases reported includes total man day lost is 47 Days. No accidents record till June 2013. A Minor Non-Conformity: There need immediate attention on fire fighting equipments and the existing HIRADC to be review as for adequacy. Basically the awareness on safety and schedule waste among workers need to be enhancing further. Some of the nonconformities that was observed during the mill visit: 1). Shovel driver allowed the lorry driver to be on the lifting compartment. 2). Schedule and non-schedule waste mixed. 3). Improper maintenance of first aid equipments. 4). Oily floor found next to workshop. 5). Improper maintenance of de-oiling storage ASA 2 4.8 Record of training for each worker was kept as attendance list record for all workers. Have personal training record to monitor the effectiveness of the training to the workers. File workers name; Baiya Lal (JH98A) have attended 3 training which is PPE & RSPO Training, RSPO Training on ERT and 7 policies.

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

Sighted "Annual Training Program for Year 2013/2014", at which on every month an average of 1 training planned for all level of workers. The training calendar consisted with best management practices, environment, social and safety aspects. Among the trainings listed was the SOP training for harvesters, training on manuring application, training for contractors, training for tractor drivers, etc. In Batang Jelai Estate, sighted the training records for Safety procedure for workshop dated on 18/06/2014 were attended by 5 workers and SOP for harvesters. Trainings are well covered of both local and foreign workers and Safety procedure for manuring dated on 15/05/2014 conducted by competent senior staff to all workers. Principle 5: Environmental Responsibility and Conservation of Natural Resources and Biodiversity Criterion by Environmental Impact Assessment has been carried out by the mill and Audit estates. A comprehensive identification of all waste has been recorded and disposal of scheduled waste has been carried out by an approved and Summary registered collector. Monitoring and analysis of waste is carried out regularly. Landfills were filled with non-biodegradable wastes such as plastics and an observation was raised for this matter. 1 Major and 1 Minor NCs issued. ASA 2 5.1 Environment Impact Assessment is developed based on SOP 10.0 issue/rev 2.0 dated on 01/03/2013 consist of identification - To identify all activities or aspects of the palm oil mill those have impact to the environment. To obtain a site plan indicating that area where activities pertaining to POM and sensitive area in estate. Annually review the EIA during Management Review Meeting [19/06/14] and re-evaluate if any new activities in POM, changes of legislation and environmental issue raise by stakeholder. Assessment is covered all operation activities in the mill from receiving the FFB until despatching CPO & PK out from mill compound. EIA review carried out and required mitigation measures identified in the risk assessment.

The recent review done on 25/06/2014 by the mill assistants. Since previous audit, neither extension nor renovations conducted done in the mill. However as at on audit date, there is a plan in the mill for removing / dismantling 1 unit of steriliser. In estates, the recent EIA is dated on 01/04/2014 with the pollution prevention plan attached. Mitigation measures include trainings for workers whom expose to jobs that have impact to environment. Trainings sighted for premixing & collection of sump, monitoring water quality and schedule waste management. Timeline for this action is set as on-going process and the estate manager is fully responsible in delegating the required jobs. No changes in operation activities. Negative impact were identified above has been taken sufficient mitigation measures action plan. The ERP team also will react for others emergency case as well such a flood and chemical spillage. The mitigation measure is reviewed annually or when necessary to monitor the effectiveness. In Kombok estate, HCV assessment is carried out based on SOP 11.0 – High Conservation Value (HCV) & Conservation Area Management. From the assessment carried out on and the assessment done by using HCV Tool Kit by WWF version October 2009. As for Home division HCV assessment carried out on 11/06/2013, there is a gazetted river bank of Sungai Simin in field PM01A/20 was categorized as conservation area. A 20M riparian zone was set on each side of the river bank. In this division there is no HCV area identified. Also found an old local cemetery in field PM 07C/16 and this area remain

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

unplanted and no estate activities are carrying out. An interview with stakeholder evidenced for this and this being categorized as CV instead of HCV. As for Ulu Sawah estate, HCV assessment carried out on 22/05/2013. In this division there is no HCV area identified. The management has decided the water catchment pond will be categorized as conserve value. As for Mantin estate, HCV assessment carried out on 11/06/2013. In this division there is HCV 3 area identified. Sighted there is a hot spring at PM02C was marked under HCV category 3 and water catchment pond categorized as CV. ASA 2 5.2 In Batang Jelai Estate, HCV assessment is carried out based on SOP 11.0 – High Conservation Value (HCV) & Conservation Area Management. From the assessment carried out on 01/04/2014 identified only HCV 4 in the estate area. Assessment using HCV Tool Kit by WWF version October 2009. The estate has water catchment ponds in PM07A/86 in Palong Division and 2002b in Main Division. Measures to maintain the ERT done by management with restricted of hunting in the identified area. Appropriate signages were sighted during site visit. There is on-going biodiversity concerning [mammals, birds, reptiles] education to the workforce sighted. Observed records of training for stakeholders and sprayers. The SOP- 11 available for HCV management. Surrounding neighbours [government, NGO's and local communities] always invited for the stakeholder meetings, which the venue used to discuss and review of the HCV issues. Sighted the recent updated stakeholder list and the minutes well documented. There is on-going biodiversity concerning [mammals, birds, reptiles] education to the workforce sighted. Observed records of training for stakeholders and sprayers. ASA 2 5.3 Mill have document titled “Identification of All Waste Products and Operational Plan to Reduce Pollution” was well documented. The plan objective is to maximize recycling and minimize the pollution. List of waste is updated by annually basis. Waste list is separated by scheduled waste & and common waste as below: Scheduled Waste - Spent lubricating oil - Spent oil filter - Spent batteries - Empty chemical containers By Product Waste - EFB, cake and POME effluent - recycle to estate as added product - Blake smoke / dust - frequent furnace cleaning - Fibre and shell - use as boiler fuel - Boiler ash - Scrap irons - Household rubbish Laboratory chemical containers The entire empty chemical containers that used in laboratory are collected back by supplier [Lung Seng Chemicals Sdn. Bhd.]. Record of collector available e.g dated on 18/02/14 for 21pcs (200 liters drums). Raw water treatment chemicals sent to the supplier back. Spent lubricating oil [SW 305], Spent hydraulic oil [SW 306] and Cotton rags [SW 410] - (scheduled waste). Sources from vehicles, machinery and workshop is mitigate action taken was the waste will be dispose with the correct way which is collected by DOE approved collector Lung Seng Chemicals Sdn. Bhd. (License no. 002081).

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

Mill have document titled “Identification of All Waste Products and Operational Plan to Reduce Pollution” [01/02/14] was well documented. The waste management plan objective is to maximize recycling and minimize the pollution. List of waste is updated by annually basis. Operational Plan contains details such as waste products / sources of pollutions / mitigation measures / Target & Person Responsible. Sources from mill wastewater. Waste water is treated using ponding system before discharging into cascaded pits for land application, monthly testing and monitoring of effluent samples and new installation of belt press to remove solid. POMS generated recycle biomass that being sent to Tuan Mee for field mulching and land application. Data from May 2014 a per: Type Mar'14 Apr'14 May'14 EFB 3002MT 2648MT 1517MT Decanter Cake 730MT 674MT 400MT POME for land irrigation 12400M3 12000M3 12000M3 SOP 10 established in 01/03/2013. EIA reviewed and updated on 01/06/2014 for all the activities. The source of waste well identified in the "Environmental Impacts Assessment & Pollution Prevention Plan" dated on 05/05/14. Among the identified sources are office, workshop, water treatment, chemical store, etc. In Ayer Hitam estate, the file available in SOP12 for the latest month which is in 29/06/2014. Used oil [SW 305], used rags [SW 410], used oil filter [SW 410]. The schedule waste being dispose with the correct way which is collected by OLST Petro-Chemical SDN. BHD. "Environmental Impacts Assessment & Pollution Prevention Plan" dated on 01/06/14 identifies the ways to avoid or reduce pollution. ASA 2 5.4 Mill has sufficient plans to reduce the usage of the fossil fuel that included in the 2013/2014 budget. Monitoring of energy usage per tonne of FFB processed was monitored by SOP 12.0 Waste Management & Energy Use issue/revision 2/0 dated on 01/03/2013. Data sighted for period Oct 2013 – March 2014 on genset usage. Month Diesel usage[L] FFB processed [MT] Litre/MT Jan'14 1466 16930.71 0.090 Feb'14 1467 15839.63 0.093 Mar'14 1679 17229.94 0.097 Apr’14 2817 16659.96 0.169 May’14 1003 9045.59 0.111

In Kombok estate, the fossil fuel usage is clearly mentioned in the by SOP 12.0 dated on 01/03/2013 titled “Energy Usage”. Record from Jan till Jun 14 sighted as below: Month Diesel usage[Lt] FFB Transported [MT] Litre/MT Feb 5651 3320 1.70 Mar 5492 3351 1.63 Apr 5738 3136 1.83 May 5221 3200 1.63 Jun 5056 2777 1.82

In Batang Jelai estate the fossil fuel usage is clearly mentioned in the by SOP 12.0 dated on 01/03/2013 titled “Energy Usage”. Record from Jan till May 14 sighted as below: RSPOPC-SUM-REPORT.F01 MAY 2014 Page 31 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

Month Diesel usage[Lt] FFB Transported [MT] Litre/MT Feb 3717 2099 1.77 Mar 3413 2147 1.59 Apr 3350 2174 1.54 May 3169 2188 1.45

ASA 2 5.5 No land burning preparation in KLK Group Company. Policy of Zero burning well implemented. KLK Group was maintained “Group Agriculture Oil Palm” and covered for land preparing Policy no. GP/AGRIC/OP7: Replanting section title: Palm Chipping and Pulverizing. In the Policy No. GP/AGRIC/OP 4: Pest & Disease – 2, titled “Ganoderma Treatment in Oil Palm” as well implemented same method to disposed effected palm tree. The tree will be felled, chipping and landfill. If there would be any replanting process, the old palm to be felled, chipped and pulverised and been remained in the field for self-composed. Replanting work progress is monitored in document “Replanting Work Program”. Sighted no fire activity involved during the progress. ASA 2 5.6 Mill have document titled “Identification of All Waste Products and Operational Plan to Reduce Pollution” well documented. List of waste is updated and the operational plan contains details such as waste products, sources of pollutions, mitigation measures, target, person responsible and status. A Major Non-Conformity: Significant of pollutant and GHG emission not been identified. Plans to reduce or minimize the GHG emissions that include objectives, targets and timelines not available. A Minor Non-Conformity: Since there is no plans to reduce or minimize the GHG emissions therefore the monitoring system not auditable. Principle 6: Responsible Consideration of Employees and of Individuals and Communities by Growers and Millers Criterion by The mill and estate have conducted the social impact assessment. The Audit relevant policies are in place and are fully implemented across the board. Communication and consultation as well complaints and grievances Summary procedure are well communicated and adhered to. There are evidences of workers not been discriminated against in any way and all are being paid their fair wages. 1 Major and 5 Minor NCs issued. ASA 2 6.1 In the mill, SIA assessment procedure sighted dated 1.4.2013 for SOP 13 issue 2/0. Conducted SIA by means of questionnaire and meeting dated 26.6.2014; meeting and minutes sighted for discussion on topic of Overtime not more than 4 hours / day - [+] Safety is ensured as no fatigue - [+] Time for family - [-] Not enough money, about RM 100 less from previous time 3 questionnaires sighted done by Plant operator, Lab Assistant, Sample Boy, and Dayshift Mandore which was used as Social Impact Assessment Questionnaire. A documented social impact assessment given was conducted as per the procedure SOP 13 as stated above. 155 workers registered as employee of Jeram Padang Mill. Stakeholder of the mill nearly 250 over people excluding external stakeholder. 20 out of 30 participant of survey sighted replied [66.6.%] In estates, the SIA assessment procedure sighted dated 1.4.2013 for SOP 13 issue 2/0. Conducted SIA by meeting dated May 2014 and minutes sighted

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

for discussion on by mans of survey form cattles encroach to workers quarters and application of compound fertilizer [heavy smell]. 173 workers registered as employee of Kombok Estate. Stakeholder of the mill nearly 45 over people excluding external stakeholder. 12 out of 16 participant of survey sighted replied [75%]. Assessment done with affected parties evident. Smallholder schemes not applicable A Major Non-Conformity issued against criterion 6. In Lekir Estate, a documented social impact assessment given was not conducted as per the procedure SOP 13. Assessment done with affected parties not evident. A timetable with responsibilities for mitigation and monitoring reviewed and updated as necessary not evident as well. A Minor Non-Conformity: against 6.1.4, plans shall be reviewed as a minimum once every two years and updated as necessary, however the plans not reviewed or updated nor interval for review or updating stated. ASA 2 6.2 SOP 1.0 Stakeholder Engagement dated 1.3.2013 rev 2 is shown as a documented consultation and communication procedure. PIC personnel available. Assistant Mill Manager Mr. Arif Afifi Ahmad is responsible for RSPO issues. But not nominated nor stated in the job roles and responsibilities of the said personnel. List of stakeholder updated on 28.5.2014. 71 stakeholder, government official, traders, supplier, community etc - Mr Lee, the canteen owner of the Jeram Padang Mill is sighted listed as stakeholder. - Apart from Ex: Police, Sundry shop Owner, Hospital PIC are in list. In estate, PIC personnel available. Manager Mr Tan Poh Thean [Senior Assistant] is responsible for RSPO issues. Nominated dated 31.12.2014 stated the communication & consultation as part of his responsibilities. List of stakeholder updated on 1.4.2014. 45 stakeholders listed. - Mr Mathyalakan, the Indian Village Head is sighted listed as stakeholder. Apart from Ex: Police, Sundry shop Owner, Hospital PIC are in list.

A Minor Non-Conformity: against 6.2.2, PIC personnel available. Assistant Manager Mr. Arif Afifi Ahmad is responsible for RSPO issues. But not nominated nor stated in the job roles and responsibilities of the said personnel. ASA 2 6.3 SOP 1.0 Stakeholder Engagement dated 1.3.2013 rev 2 shows Complaints & Grievance at Para 3 the process of complaints & grievance. In Jeram Padang POM. There were 7 complain registered; usually on housing repairs. Last registered dated 6.6.2014; complaining on leakage in washroom. Action taken dated 8.6.2014. No complaints from Union member related to work registered in this procedure. No grievances recorded as per this audit period

In Kombok Estate, no complain registered as per this audit period. Many complain were verbally received and corrected on house repair / electrical repairs. [Registered under “Repair books”; 30 entry noted. 1 grievance recorded as per this audit period. Dated 12.8.2013. By Mr Nadesan who complaint / grieved about an incident in which he was nearly got slapped. ASA 2 6.4 No negotiations concerning compensation for loss of legal or customary rights are as per this assessment period. ASA 2 6.5 Sampled and interviewed in the mill, 1. Sterilizer – Hamid Khairuni [ Local] 2. Grader – Shantana Kumar [Foreign - Indian] RSPOPC-SUM-REPORT.F01 MAY 2014 Page 33 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

3. Female – Cleaner – Norashikin [ Local ] Pay wages & slip evident; employee understood the salary itinerary. Minimum pay of RM 34.62 as per the government regulation sighted and verified. Sighted for: Hamid in May 2014 [RM 1409.05 from Basic, Daily OT and Rest day OT]; deduction for Union, EPF, Socso, [RM 392.15] Net: RM 1016.90. Shantana Kumar in Aug 2013 [RM 1975.48 from Basic, Daily OT and Rest day OT & PH]; deduction for TNB & Temple, Union [RM 178.45] Net: RM 1797.03. Overtime doesn’t exceed the national labor law requirement. o Rest day do not complies i. Aug 2013 Mr Shantanakumar worked without rest day after 6 day of work from 1st – 25th [ MC on 14th Aug] ii. May 2014 Mr Shantanakumar worked without rest day after 6 day of work from 5th – 31st [ MC on 8th May] o Public holiday complies

Interviewed Ms Kannagi [ 2nd Clerk] and Pn Zalina [office attendance]

In Kombok Estate, Sampled and interviewed 1. Samsiah – Indonesian - Loader 2. Subramaniam - Local – Sprayer Pay wages & slip evident; employee understood the salary itinerary. Minimum pay of RM 34.62 as per the government regulation sighted and verified. Samsiah in May 2014 [RM 1769.51 from Basic, Price Bonus RM 5.50, Productivity Incentives and Rest day OT]; deduction for Utility [RM 6.00] Net: RM 1163.51

Subramaniam in May 2014 [RM 878.26 from Basic RM 34.62,& PH]; deduction for Absent 1 day, Unpaid leave 3 days, TNB & Temple, KWSP, Union [RM 184.25] Net:: RM 694.01.

Contract verified; local staffs, foreigner has their own agreement. Workers understood contract. Terms & condition evident. Sampled and interviewed 1. Sprayer – Subramaniam [ Local] - Ref 0196J dated 2.5.1992 2. Harvester – Samsiah [Foreign - Indonesian] - Ref 0757 A dated 8.2.2013 sighted rest day, PH, Annual Leave, Sick Leave, Hospitalization, resignation etc

Maternity pay sighted for Ms Manjula Gunalan; child born on 28.3.2014; 30 days before / after confinement is evident. Evident of maternity pay for December & January sighted. Date of confinement 25.3.2014 – 25.6.2014, she was working as Creche Ayah [light duty]. Maternity payment evident [RM 902 & RM 1075.60].

Domestic Waste – Landfill Sanitation-ok TNB electric subsidized and free water provided. E-Coli and Chlorine was tested dated 12.2.2014 ref LC/Lab/0751/14[A]. Water drinkable and no un- authorize extension of quarters allowed.

Nearest town is Bahau, Negeri Sembilan; which 12 km away. Simple groceries shop is available in line site. Few merchant [vegetable / fish/ meat] seen

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

coming for business.

A Minor Non-Conformity: against 6.5.2 Mill: o Rest day do not complies iii. Aug 2013 Mr. Shantanakumar worked without rest day after 6 day of work from 1st – 25th [ MC on 14th Aug] & on May 2014 Mr. Shantanakumar worked without rest day after 6 day of work from 5th – 31st [ MC on 8th May] Estate: o Rest day do not complies iv. May 2014 Ms .Samsiah worked without rest day after 6 day of work from 12th – 31st ASA 2 6.6 The policy of freedom association statement mentioned clearly in policy of “The Right of Freeedom Association of Employees”. Policy publicly displayed in office and at line-site. No workers union established for foreign workers according to the local law and regulations. However workers have several associations such as JKKK, Mosque Committee and company has conducted meeting with Social meeting and women committee meeting regularly (every 3 month). All workers are member of trade union, NUPW including foreigner workers. No record of disputes or complaint with management recorded for past 2 years. Further, workers have several platforms to raise any issue at OSH meeting and Gender Committee meeting. Minutes of meeting available. ASA 2 6.7 The company has created and implementation of minimum age, it was stated in policy of “Child employees”. According interview with workers and staff and document review, it confirmed that no workers below 18 year old working in all operation units. The youngest/latest worker in the mill is Ms Ratha Sugumaran (birth on date 28.3.1994; started 24.6.2014 - when he starts work in 19 years 9 months old). The youngest/latest worker in estate is Mr Vijiyan Ramasamy [Local] (birth on date 31.3.1990; started 20.7.2011 - when he starts work in 20 years 8 months old). Interviewed Ms Zalina– Office Attendant [Payroll]. ASA 2 6.8 Policy of equal opportunities publicly displayed in office and at line-site. Understanding of the policy is found moderate by the interviewed with the local or foreigner workers. According interview with workers, the company has implemented equal opportunities to all workers, including migrant workers.No advertisement sighted. Recruitment selection, hiring and promotion are based on skills, capabilities, qualities, and medical fitness necessary for the jobs available. In the mill, rReferred to List of Employees & Birth date - Total 111 [ Staff -18, Worker -93 ] - Male 84- ; Female- 9 - Local-48 Indonesia - 22; Indian -23 - Malay - 23; Chinese - 0; Indian - 25

In the Kombok estate, referred to List of Employees & Birth date - Total 324 [ Staff -14, Worker -310 ] - Male 260- ; Female- 50 - Local- 100, Indonesia - 127; Bangladesh -42, Indian-41 - Malay - 15; Chinese - 0; Indian - 85 ASA 2 6.9 A policy on sexual harassment and violence in the workplace; including for reproductive rights. In the mill, no confinement period worker as per this audit period. Ms Zalina [ 5 month old pregnancy]. She was sighted to be doing

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

office work [sitting long hours]. In Kombok estate, maternity pay sighted for Ms Manjula Gunalan; child born on 28.3.2014; 30 days before / after confinement is evident. Evident of maternity pay for December & January sighted. Date of confinement 25.3.2014 – 25.6.2014, she was working as Creche Ayah [light duty]. A grievance mechanism in flow chart “Handling of sexual harassment”, if any allegation received, chairman of women’s committee to inform OC manager of complaint and investigating will be conducted and finding submited to Manager. Sighted in the mill, the company conduct regularly meeting [last meeting on 25.6.2014] with women committee [8 members], minutes meeting available. Ms Kannagi – Gender Committee Secretary interviewed. The main issue of sexual harassment, violent, breastfeeding and pregnant lady advises were covered. Monthly Maternity Risk Assessment used to monitor hazardous work towards pregnant lady. In Estate, sighted the company conduct regularly meeting [last meeting on 2.4.2014] with women committee [10 members], minutes meeting available. Ms Norfarah Mohd Salleh – Gender Committee Chairman interviewed. The main issue of sexual harassment, violent, breastfeeding and pregnant lady advises were cover. A Minor Non-Conformity issued against criterion 6.9.2: Jeram Padang POM : A policy on reproductive rights in the workplace dated 1.1.2013available. 1. Ms. Zalina [5 month old pregnancy]. - She were sighted to be doing office work [sitting long hours]; no risk assessment carried out for works that will affect the pregnant lady to ensure that works given during her pregnancy term will not harm her pregnancy Kombok Estate : Maternity pay sighted for Ms. Manjula Gunalan; child born on 28.3.2014; 30 days before / after confinement is evident. - Evident of maternity pay for December & January sighted. Date of confinement 25.3.2014 – 25.6.2014, she was working as Creche Ayah [ light duty] no risk assessment carried out for works that will affect the pregnant lady to ensure that works given during her pregnancy term will not harm her pregnancy. ASA 2 6.10 Collecting FFB from own estate within the KLK Group. However if necessary; The price for FFB supplier is vary and decided by the HQ. There are matrix on the FFB pricing that include supplier, FFB tonnage delivered/MT, OER%, Ker%, processing charges/MT, transport charges/MT, MPOB cess, and terms effective. According to MAPA circular No.11/2014, dated 21/4/2014 the oil palm wage rates for May 2014 is RM 2834.50/tonne. Price bonus is RM 5.50/full day. Wages rates are RM 34.62 per day worked. There is SOP regarding FFB pricing mechanism last update 1/3/2013. The pricing for every supplier are being decided by HQ. In mill, sighted the contract between company and a contractor are available. The latest contract is between Jeram Padang POM and Messr Sin Chuan Aik Transport; for CPO Transporting dated 1.5.2014, contract No 10-2013/2014. Documents are kept in the mill office. RSPOPC-SUM-REPORT.F01 MAY 2014 Page 36 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

The document review of payment to supplier is confirmed that all payments have been made in a timely manner. Ex: Invoice # 061452 dated 31.5.2014; and paid as per Payment Voucher Cheque Remittance Advise # 061452 dated 17.6.2914 for RM 26610.04. Verified as W46 seen posted in General Ledger Expenditure for April 2014. In Kombok estate, sighted contract between company and a contractor is available. Sighted contract, the documents are kept in estate office. Ex: FFB Transporting Contract No - between the Estate and Messr Vijayakumar to carry out FFB transporting work in the estate. This contract will expire on 1.10.2016. Documents are kept in the mill office. ASA 2 6.11 In the POM, sighted the record of CSR in ending Sept 2013 is stated : RM 47658.49 is spent on Amneties and Welfare - Sports allocation– RM 22473.45/= - CSR for RM 7392 i. Community Service – RM 4530 ii. Education - Subsidy school bus - RM 1632

Oct 2013 – Sept 2014 budget stated, RM 44796 is budgeted on Amnesties and Welfare - Sports allocation– RM 4000/= - Capital Expenditure i. 1 block of staff quarters – RM 170000 - CSR for RM 12986 i. School bus RM 7700 ii. Community Hall RM 2000 iii. Public Fund RM 2500, etc

In the estate sighted, record of CSR in ending Sept 2013 is stated : RM 97697 is spent on Amneties and Welfare i. Creche Ayya – RM 19198/= ii. Sports allocation– RM 24237/= iii. Subsidy school bus for workers children RM 27@ RM 12369

Oct 2013 – Sept 2014 budget stated , RM 85738 is budgeted on Amneties and Welfare a. Sports allocation– RM 6600/= b. CSR for RM 3000 iv. Donation to Police Sundry Donation to Local Communities

ASA 2 6.12 Interviewing the workers and stakeholders revealed that there is no forced or labor trafficking involved. Temporary worker not employed. Sighted labour policy and labour contract is general with local employees. No contract substitution. Post-arrival orientation programme. Decent living conditions to be provided. Statement of the non-discriminatory practices. ASA 2 6.13 In countries and communities where KLK operates, social issues are part of a broader set of complex socioeconomic and security concerns and being apply to many aspects of their business. The management of human rights issues in KLK is based on the totality of their efforts and not on a single activity. Their corporate policies, management processes, community investment programs and participation in voluntary initiatives are complementary and are intended to work together and reinforce their commitment to respecting human rights.

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

A Minor Non-Conformity issued against criterion 6.13.1: However a policy to respect human rights not documented and communicated to all levels of the workforce and operations. Principle 7: Responsible Development of New Plantings Criterion by Summary There were no new plantings carried out. Audit ASA 2 Summary There were no new plantings involving forest land. ASA 2 7.1 Neither new planting nor extension of existing one documented and seen during this audit. Replanting program in place for period of 2015 - 2021. Based on the Group Policy - Oil Palm dated 17 July 2010, there is no SOP established for new planting. The management claimed there is no oil palm extension in Malaysia. There is no out grower scheme associated with this estate. ASA 2 7.2 New planting not applicable however AAR prepared the annual soil & leaf sampling and topographic informations for current estates. Topographic information for the existing estate sighted along with latest GPS Survey. ASA 2 7.3 No primary forest sighted within this estate perimeter. The estate neighbor to industrial park and residential estate. No HCV area identified and the matured youngest palm is 2008. As there is no new planting applicable, therefore formal HCV assessment not evidence. No new planting programme applicable. As there is no new planting applicable, therefore formal HCV, EIA and SIA assessment not evidence. ASA 2 7.4 AAR report on "Oil Palm Manuring Recommendations 2013/14 sighted with estate's geographical condition. No peat land and due to no hilly and sloping areas, therefore terraincing not applicable. The annual AAR report will be used as guideline for existing estate mature palm management and for replanting. ASA 2 7.5 As there is no new planting applicable, therefore formal HCV, EIA and SIA assessment not evidence. ASA 2 7.6 Neither new planting nor extension of existing one documented and seen during this audit. Replanting program in place for period of 2015 - 2021. As there is no new planting applicable, therefore formal HCV, EIA and SIA assessment not evidence. No negotiations concerning compensation for loss of legal or customary rights are as per this assessment period. Based on the land title, it leases for 99 years, therefore no compensation issues involved. Since the RSPO certification date, there isn't any issues raised by stakeholders during stakeholder meetings. Based on the land title, it leases for 99 years, therefore no compensation issues involved. Neither new planting nor extension of existing one documented and seen during this audit, therefore no evidence available for communication to communities. ASA 2 7.7 KLK has stated on zero burning in the SOP-09 dated on 01/01/2011. The upcoming replanting schedule to be in 2015. During field visit not observed any open burning in the operating units. Apart from the policy, Guidelines for the implementation of the ASEAN policy on zero burning used for reference. KLK has stated on zero burning in the SOP-09 dated on 01/01/2011. ASA 2 7.8 Neither new planting nor extension of existing one documented and seen during this audit. Principle 8: Commitment to Continuous Improvement in Key Areas of Activity Criterion by Sighted continuous monitoring, review of activities and development are Audit implemented along with action plans that allow demonstrable continual Summary improvement in key operations such as in minimizing use of certain pesticides, environmental impacts, maximizing recycling and minimizing waste or by-products generation, pollution prevention plans.

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

ASA 2 8.1 As in the mill, the steam generation process, only using shell during start-up boiler and fibre throughout processing period. If at all pressure drops significantly below 220psi, then some shell added to rise up the pressure. Continues Emission Monitoring System [CEMS] in place directly linked to DOE every day. Stack emission sampling done twice annually in accordance to DOE requirement. The recycling includes such as EFB for mulching, Scrap iron, Land application, Fibre, boiler ash etc. All recycling of effluent is done at de-oiling tank which is in a contained bund complete with skimmer and pump. As for Clarification, Purification and Separation process, the sludge produced are discharge to de-oiling tank and cooling pond and then it pumps to effluent treatment plant by way of open ponding system before discharging points. BOD recorded below 100ppm as per DOE regulation. As for Depericarpering and Kernel recovery, the mitigations measures are enforcing the operators to wear ear plugs at all time.

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 2 major and 8 minor Non-Conformities Identified.

NON CONFORMITY REPORT NC number: 01/2014 Client name: KLK JERAM PADANG COMPLEX Date raised: 03/07/2014 Major or Minor: Major Raised by: Mahaswaran Maliyapan Aspect of standard: Criterion: 5.6.2 - Significant pollutants and greenhouse gas (GHG) emissions shall be identified, and plans to reduce or minimise them implemented. Evidence of non-conformity: Significant of pollutant and GHG emission not been identified. Plans to reduce or minimize the GHG emissions that include objectives, targets and timelines not available. Auditors signature:

Date: 03/07/2014 Proposed corrective action / improvement action by company: An immediate meeting was organized after the audit’s closing meeting among all staff that involved in the GHG assessment, a review was conducted and assignment delivered on.

Timeline for conformance: 60 days Review of corrective /improvement action: Sighted the “REDUCING/MINIMISING GREENHOUSE GAS (GHG) RSPOPC-SUM-REPORT.F01 MAY 2014 Page 39 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

EMISSIONS PLAN” which dated on 15/07/2014. The effectiveness of the monitoring activities will be verified in next assessment.

Assessors signature:

Date: 30/07/2014

NON CONFORMITY REPORT NC number: 02/2014 Client name: KLK JERAM PADANG COMPLEX Date raised: 03/07/2014 Major or Minor: Major Raised by: Mahaswaran Maliyapan Aspect of standard: Criterion: 6.1.3 Plans for avoidance or mitigation of negative impacts and promotion of the positive ones, and monitoring of impacts identified, shall be developed in consultation with the affected parties, documented and timetabled, including responsibilities for implementation. Evidence of non-conformity: A timetable with responsibilities for mitigation not available.

Auditors signature:

Date: 03/07/2014 Proposed corrective action / improvement action by company: A quick brainstorming session on existing SIA was conducted by the sustainability team for the entire management team.

Timeline for conformance: 60 days

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

Review of corrective /improvement action: Sighted the samples of SIA checklist and the reviewed and an updated version of SIA that seen timetable with responsibilities for mitigation. Therefore this NC is closed.

Assessors signature:

Date: 30/07/2014

NON CONFORMITY REPORT NC number: 03/2014 Client name: KLK JERAM PADANG COMPLEX Date raised: 03/07/2014 Major or Minor: Minor Raised by: Mahaswaran Maliyapan Aspect of standard: Criterion: 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: Jeram Padang POM : A policy on reproductive rights in the workplace dated 1.1.2013available. 2. Ms. Zalina [5 month old pregnancy]. - She were sighted to be doing office work [sitting long hours]; no risk assessment carried out for works that will affect the pregnant lady to ensure that works given during her pregnancy term will not harm her pregnancy Kombok Estate : Maternity pay sighted for Ms. Manjula Gunalan; child born on 28.3.2014; 30 days before / after confinement is evident. - Evident of maternity pay for December & January sighted. Date of confinement 25.3.2014 – 25.6.2014, she was working as Creche Ayah [ light duty] no risk assessment carried out for works that will affect the RSPOPC-SUM-REPORT.F01 MAY 2014 Page 41 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

pregnant lady to ensure that works given during her pregnancy term will not harm her pregnancy

Auditors signature:

Date: 03/07/2014 Proposed corrective action / improvement action by company.

Timeline for conformance: 60 days Review of corrective /improvement action:

Assessors signature:

Date:

NON CONFORMITY REPORT NC number: 04/2014 Client name: KLK JERAM PADANG COMPLEX Date raised: 03/07/2014 Major or Minor: Minor Raised by: Mahaswaran Maliyapan Aspect of standard: Criterion: 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: The management is in progress of implementing / developing all the necessary Human rights policy. However at the period of audit, it is noted that the Human Rights policy is not publically available yet. Auditors signature:

Date: 03/07/2014 Proposed corrective action / improvement action by company.

Timeline for conformance: next surveillance

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

Review of corrective /improvement action:

Assessors signature:

Date:

NON CONFORMITY REPORT NC number: 05/2014 Client name: KLK JERAM PADANG COMPLEX Date raised: 03/07/2014 Major or Minor: Minor Raised by: Mahaswaran Maliyapan Aspect of standard: Criterion: 4.7 and 5.3 Accident and emergency procedures should exist and instructions should be clearly understood by all workers. Evidence of non-conformity: There need immediate attention on fire fighting equipments and the existing HIRADC to be review as for adequacy. Basically the awareness on safety and schedule waste among workers need to be enhance further. Some of the nonconformities that was observed: 1). Shovel driver allowed the lorry driver to be on the lifting compartment. 2). Schedule and non-schedule waste mixed. 3). Improper maintenance of first aid equipments. 4). Oily floor found next to workshop. 5). Improper maintenance of de-oiling storage

Auditors signature:

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

Date: 03/07/2014 Proposed corrective action / improvement action by company.

Timeline for conformance: next surveillance Review of corrective /improvement action:

Assessors signature:

Date:

NON CONFORMITY REPORT NC number: 06/2014 Client name: KLK JERAM PADANG COMPLEX Date raised: 03/07/2014 Major or Minor: Minor Raised by: Mahaswaran Maliyapan Aspect of standard: Criterion: 6.1.4 The plans shall be reviewed as a minimum once every two years and updated as necessary, in those cases where the review has concluded that changes should be made to current practices. There shall be evidence that the review includes the participation of affected parties. Evidence of non-conformity: The plans not reviewed or updated nor interval for review or updating stated

Auditors signature:

Date: 03/07/2014 Proposed corrective action / improvement action by company.

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

Timeline for conformance: next surveillance Review of corrective /improvement action:

Assessors signature:

Date:

NON CONFORMITY REPORT NC number: 07/2014 Client name: KLK JERAM PADANG COMPLEX Date raised: 03/07/2014 Major or Minor: Minor Raised by: Mahaswaran Maliyapan Aspect of standard: Criterion: 6.2.2 A management official responsible for these issues shall be nominated. Evidence of non-conformity: PIC personnel available. Assistant Manager Mr. Arif Afifi Ahmad is responsible for RSPO issues. But not nominated nor stated in the job roles and responsibilities of the said personnel.

Auditors signature:

Date: 03/07/2014 Proposed corrective action / improvement action by company.

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

Timeline for conformance: next surveillance Review of corrective /improvement action:

Assessors signature:

Date:

NON CONFORMITY REPORT NC number: 08/2014 Client name: KLK JERAM PADANG COMPLEX Date raised: 03/07/2014 Major or Minor: Minor Raised by: Mahaswaran Maliyapan Aspect of standard: Criterion: 6.5.2 Labour laws, union agreements or direct contracts of employment detailing payments and conditions of employment. Evidence of non-conformity: Mill: o Rest day do not complies v. Aug 2013 Mr. Shantanakumar worked without rest day after 6 day of work from 1 st – 25 th [ MC on 14 th Aug] & on May 2014 Mr. Shantanakumar worked without rest day after 6 day of work from 5th – 31 st [ MC on 8 th May] Estate: o Rest day do not complies

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

vi. May 2014 Ms .Samsiah worked without rest day after 6 day of work from 12 th – 31 st

Auditors signature:

Date: 03/07/2014 Proposed corrective action / improvement action by company.

Timeline for conformance: next surveillance Review of corrective /improvement action:

Assessors signature:

Date:

NON CONFORMITY REPORT NC number: 09/2014 Client name: KLK JERAM PADANG COMPLEX Date raised: 03/07/2014 Major or Minor: Minor Raised by: Mahaswaran Maliyapan Aspect of standard: Criterion: 5.6.3 - A monitoring system shall be in place, with regular reporting on progress for these significant pollutants and emissions from estate and mill operations, using appropriate tools. Evidence of non-conformity: Since there is no plans to reduce or minimize the GHG emissions therefore the monitoring system not auditable. Auditors signature:

Date: 03/07/2014 Proposed corrective action / improvement action by company.

RSPOPC-SUM-REPORT.F01 MAY 2014 Page 47 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

Timeline for conformance: next surveillance Review of corrective /improvement action:

Assessors signature:

Date:

NON CONFORMITY REPORT NC number: 10/2014 Client name: KLK JERAM PADANG COMPLEX Date raised: 03/07/2014 Major or Minor: Minor Raised by: Mahaswaran Maliyapan Aspect of standard: Criterion: 6.13.1 - A policy to respect human rights shall be documented and communicated to all levels of the workforce and operations. Evidence of non-conformity: A policy to respect human rights not documented and communicated to all levels of the workforce and operations. Auditors signature:

Date: 03/07/2014 Proposed corrective action / improvement action by company.

RSPOPC-SUM-REPORT.F01 MAY 2014 Page 48 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

Timeline for conformance: next surveillance Review of corrective /improvement action:

Assessors signature:

Date:

4.3.2 Non-Conformity Identified during the last ASA, not applicable for MA Non-Conformities Identified for previous audit. [3 Minor NCs]

NON CONFORMITY REPORT NC number: 2013-01 Client name: KLK Jeram Padang Date raised: 18/07/2013 Major or Minor: Minor Raised by: Simon Aspect of standard: - Criterion 5.2.2 Identification and assessment of HCV habitats and protected areas within landholdings; and attempt assessments of HCV habitats and protected areas surrounding landholdings. Evidence of non-conformity: -

HCV assessment records and its management plan by Jeram Padang Complex needs further enforcement as seen the management plan for HCV not well defined the HCV habitats and protected areas within landholdings

RSPOPC-SUM-REPORT.F01 MAY 2014 Page 49 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

as well the survey form only limited to 2 types of animal and any sign of foreign birds, which sounds too subjective. They used their own knowledge instead of use Malaysia National Interpretation of the international HCV Toolkit to prepare a report on the findings.

Auditors signature:

Date: 18 -07- 2013 Proposed corrective action / improvement action by company. A HCV assessment was conducted by our internal team in the Jeram Padang Complex by using appropriate checklist and HCV Toolkit was used as a guideline.

Timeline for conformance: Will be verified during ASA 2. Review of corrective / improvement action: HCV assessment sighted with checklist, stakeholder interview and photographic evidences was verified by Lead Auditor. The assessment carry out is evident and therefore this minor non-compliance is closed . Assessors signature:

Date: 23/06/2014

NON CONFORMITY REPORT NC number: 2013-02 Client name: KLK Jeram Padang Date raised: 18/07/2013 Major or Minor: Minor Raised by: Simon Aspect of standard: - Criterion 5.3.2 Having identified wastes and pollutants, an operational plan should be developed and implemented, to avoid or reduce pollution. Evidence of non-conformity: - All waste is identified but not all waste is disposed of in the prescribed way. For example an amount of waste going to landfill is unclear. Some of the visited estates have evidence of inappropriate waste disposal control at landfill. The landfill consisted waste that according to the procedures shall not be disposed of in the landfill. Monitoring is more prioritize for scheduled wastes and lacking in pollution prevention control measure at landfill.

Auditors signature:

RSPOPC-SUM-REPORT.F01 MAY 2014 Page 50 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

Date: 18 -07- 2013 Proposed corrective action / improvement action by company. A training session on managing domestic waste was held among all level of workers and participated by their dependents. A checklist was developed as to monitor and control the waste disposal.

Timeline for conformance: Will be verified during ASA 2. Review of corrective / improvement action: Training records and check list on land fill management verified by Lead Auditor. The assessment carry out is evident and therefore this minor non-compliance is closed .

Assessors signature:

Date: 23/06/2014

NON CONFORMITY REPORT NC number: 2013-03 Client name: KLK Jeram Padang Date raised: 18/07/2013 Major or Minor: Minor Raised by: Simon Aspect of standard: - Criterion 8.1.1 The action plan for continual improvement should be based on a consideration of the main social and environmental impacts and opportunities of the grower/mill, and should include a range of indicators covered by these principles and criteria. As a minimum, these must include, but not necessarily be limited to: • Reduction in use of certain chemicals (criterion 4.6). • Environmental impacts (criterion 5.1). • Waste reduction (criterion 5.3). • Pollution and emissions (criterion 5.6). • Social impacts (6.1).

RSPOPC-SUM-REPORT.F01 MAY 2014 Page 51 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

Evidence of non-conformity: - The continual improvement plan available but it is not able to link with input from SIA and EIA.

Auditors signature:

Date: 18 -07- 2013 Proposed corrective action / improvement action by company. A session of brain storming was held among all executive level as to analyses the linkages of SIA and EIA to the CIP. A review and amendment done accordingly.

Timeline for conformance: Will be verified during ASA 2. Review of corrective / improvement action: The recent CIP verified by Lead Auditor. The assessment carry out is evident and therefore this minor non- compliance is closed .

Assessors signature:

Date: 23/06/2014

4.3.3 Observations Identified during this audit No observation found in this audit.

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?

RSPOPC-SUM-REPORT.F01 MAY 2014 Page 52 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

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 refer to PART 2 and PART 4 refer to PART 2 and PART 4 refer to PART 2 and PART 4

PART 5: RSPO SUPPLY CHAIN CERTIFICATION The palm mill mentioned in the scope of the audit was audited against the requirements of the following: RSPO Supply Chain Certification Systems. November 2011 RSPO Supply Chain Certification Standard. November 2011

5.1 POM Included In The Scope Of The Audit Name Mill Location Supply Chain Model Palm Oil Mill Capacity (POM) MT/Hour Address (IP or SG or MB) Jeram Padang Palm oil KM 12-Jalan Jelai-Rompin 72100 55 IP mill Bahau, Negeri Sembilan

5.2 Confirmation Of The Company’s Summary Of Annual Certified Volume Of RSPO Certified Palm Oil And Palm Kernel Over A Specified Period Product CPO (MT) PK (MT) Specified 12 month period CU Code POM 1 49,467.56 11,896.37 May 2013 to April 2014. See also 1.6 above.

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.

5.4 Monthly Records of Certified and Uncertified FFB Received Since the Last Audit If this is the 1 st Main Assessment, the figures used are from the last 12 months. If this is an Annual Surveillance Assessment, the figures used are since the last audit. No MONTH-YEAR Certified Supply Bases (MT) Uncertified Supply Bases (MT), if any Total (MT) 1 May 20 13 7300.21 - 7300.21 2 June 2013 16191.64 - 16191.64 3 July 2013 21844.93 - 21844.93 4 Aug 2013 23253.69 - 23253.69 5 Sept 2013 24944.00 - 24944.00 6 Oct 2013 26626.15 - 26626.15 7 Nov 2013 24084.26 - 24084.26 8 Dec 2013 19647.36 - 19647.36 9 Jan 2 014 16930.71 - 16930.71 10 Feb 2014 15839.63 - 15839.63 11 Mar 2014 17229.94 - 17229.94 12 Apr 2014 16659.96 - 16659.96 TOTAL 230552.5 230552.5

RSPOPC-SUM-REPORT.F01 MAY 2014 Page 53 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

5.5 Monthly Records of Certified CPO and PK Produced Since the Last Audit If this is the 1 st Main Assessment, the figures used are from the last 12 months. If this is an Annual Surveillance Assessment, the figures used are since the last audit. No MONTH-YEAR Certified CPO (MT) Certified PK Total (MT) 1 May 2013 1534.096 341.567 1875.663 2 June 2013 3432.085 784.244 4216.329 3 July 2013 4530.229 1016.696 5546.925 4 Aug 2013 4786.689 1210.783 5997.472 5 Sept 2013 5226.756 1246.264 6473.02 6 Oct 2013 5673.22 1352.608 7025.828 7 Nov 2013 5227.905 1310.196 6538.101 8 Dec 2013 4284.161 1072.967 5357.128 9 Jan 2014 3809.138 931.853 4740.991 10 Feb 2014 3627.866 843.475 4471.341 11 Mar 2014 3690.778 949.208 4639.986 12 Apr 2014 3644.639 836.51 4481.149 TOTAL 49467.56 11896.37 61363.93

5.6 Records of Certified CPO & PK Sold under Green Palm to Buyers since the Last Audit, if Any If this is the 1 st Main Assessment, the figures used are from the last 12 months. If this is an Annual Surveillance Assessment, the figures used are since the last audit. The transactions were sighted form the clients registered Green Palm Account. Certified CPO Certified PK No Buyers Name Green Palm Trading No (MT) Sold (MT) Sold 1 - - -

5.7 Records of Certified CPO & PK Sold under UTZ eTrace to Buyers since the Last Audit, if Any If this is the 1 st Main Assessment, the figures used are from the last 12 months. If this is an Annual Surveillance Assessment, the figures used are since the last audit. The transactions were sighted form the clients registered UTZ eTrace Account. Certified CPO Certified PK No Buyers Name UTZ eTrace Trading No (MT) Sold (MT) Sold

Transaction ID Buyer Product Program Volume*

TR-94623197-6d67 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-1b6100d5-363d Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-bcd9671d-f616 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-926edc0c-2781 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-9f39355f-0e65 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-87927686-7261 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-9ebe177f-588d Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-c1145498-3753 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-4ee43804-0ab7 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-dbc3a7a5-db61 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000 RSPOPC-SUM-REPORT.F01 MAY 2014 Page 54 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

TR-322de38b-642f Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-a33b7fd6-a810 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-7ef0b27d-7377 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-94d9ab02-e42b Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-f103af32-8edc Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-5b516925-bab9 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-89f062f8-2c6f Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-5fe09d8b-c803 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-c4cd8e67-276c Cargill Palm Products Sdn Bhd CPO Mass Balance 994.12

TR-12220c6f-4046 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-9ecfe9aa-6b0f Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-ec4e3a02-71ca Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-516cff12-1a73 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-25532b92-5109 Cargill Palm Products Sdn Bhd CPO Mass Balance 750.06

TR-4e39332c-da94 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-1a65250c-bf3e Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-edef7d55-a9b5 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-cf85c479-2252 Cargill Palm Products Sdn Bhd CPO Mass Balance 1,008.53

TR-6c9be386-f313 Cargill Palm Products Sdn Bhd CPO Segregation 495.79

TR-a1ffec87-683f Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-4e342dd4-d83d Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,500

TR-a4244a91-4999 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-cc53963a-e743 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-8db3dc41-6922 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-52ef903b-c1f9 Cargill Palm Products Sdn Bhd CPO Segregation 497.96

TR-412e3c61-f1ab Cargill Palm Products Sdn Bhd CPO Mass Balance 401.05

TR-4b81dfc3-8fc5 Cargill Palm Products Sdn Bhd CPO Segregation 1,007.05

TR-2546fd06-de15 Cargill Palm Products Sdn Bhd CPO Segregation 503.12

TR-0bf0cfd7-4395 Cargill Palm Products Sdn Bhd CPO Segregation 500

TR-daad359e-0b6e Kuala Lumpur Kepong Berhad / KLK Oleo CPO Segregation 130

TR-5723de30-7316 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 500

TR-8758af78-c263 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 500

TR-88ef6494-2990 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 500

TR-25dab09c-de99 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 500

TR-b66e9f7d-0747 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-14946d0f-63c7 Palmaju Edible Oil Sdn Bhd CPO Segregation 49.79

TR-250a6f69-f5af Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-6408d151-6e60 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-7ff8dd53-c1a1 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-02b0143f-bf70 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000 RSPOPC-SUM-REPORT.F01 MAY 2014 Page 55 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

TR-80c23c19-be7b Palmaju Edible Oil Sdn Bhd CPO Segregation 470

TR-88415619-c7cd Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-e211b054-4a31 Cargill Palm Products Sdn Bhd CPO Segregation 198.34

TR-cd1ef6ba-8de9 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-9db1dbbf-93ee Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-3f6922aa-d409 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-d5490eaf-5522 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 2,000

TR-5c700226-6e5a Cargill Palm Products Sdn Bhd CPO Segregation 199.92

TR-2a3f3cc3-2985 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 500

TR-b2283980-a2f9 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-eb161ee0-8cd0 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 500

TR-03df5ce0-bd3d Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-db7a929d-b553 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 500

TR-2b4b57d7-0097 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 500

TR-4ffc310a-5e81 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-943c1d6f-246c Intercontinental Specialty Fats Sdn Bhd CPO Segregation 500

TR-de147186-d689 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 500

TR-c7d64c10-2029 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 500

TR-6487c7bc-0c69 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,500

TR-3617bb15-2712 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 500

TR-f8e983a7-fc43 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 500

TR-029cf7f7-78cf Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-d0640fab-2993 Cargill Palm Products Sdn Bhd CPO Mass Balance 505.94

TR-ff042412-8619 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 500

TR-5181ef25-1dbe Intercontinental Specialty Fats Sdn Bhd CPO Segregation 500

TR-447dab1d-e42f Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-36b2f27a-76f9 Cargill Palm Products Sdn Bhd CPO Segregation 499.5

TR-1097a125-e003 Cargill Palm Products Sdn Bhd CPO Segregation 1,009.23

TR-5c1bdd2e-8901 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-fd5d1241-4fb1 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-78955d24-7a97 Cargill Palm Products Sdn Bhd CPO Mass Balance 495.88

TR-024a127c-8f05 Cargill Palm Products Sdn Bhd CPO Mass Balance 500

TR-fccfb4d4-19fb Cargill Palm Products Sdn Bhd CPO Mass Balance 497.76

TR-2c815010-d19d Cargill Palm Products Sdn Bhd CPO Mass Balance 1,000

TR-f12aa567-c85c Cargill Palm Products Sdn Bhd CPO Mass Balance 497.33

TR-1399c00c-f0ec Cargill Palm Products Sdn Bhd CPO Mass Balance 497.15

TR-045b5e7b-597d Cargill Palm Products Sdn Bhd CPO Mass Balance 501.97

TR-71d415c2-1e83 Cargill Palm Products Sdn Bhd CPO Mass Balance 500

TR-5a07e575-50ab Cargill Palm Products Sdn Bhd CPO Mass Balance 500

TR-e75eeff1-952f Cargill Palm Products Sdn Bhd CPO Mass Balance 500 RSPOPC-SUM-REPORT.F01 MAY 2014 Page 56 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

TR-c8c85620-734e Cargill Palm Products Sdn Bhd CPO Mass Balance 1,000

TR-3e8b0799-0d9a Cargill Palm Products Sdn Bhd CPO Mass Balance 500

TR-a400d273-32a9 Cargill Palm Products Sdn Bhd CPO Mass Balance 500

TR-32d9beb2-2f14 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-d7e3ac85-394f Cargill Palm Products Sdn Bhd CPO Mass Balance 500

TR-3cae72c2-67f1 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 500

TR-511235d2-20d3 Cargill Palm Products Sdn Bhd CPO Segregation 503.13

TR-fd237e96-ccc0 Cargill Palm Products Sdn Bhd CPO Mass Balance 497.26

TR-7214bf28-4eec Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-ec5368bc-b80b Intercontinental Specialty Fats Sdn Bhd CPO Segregation 500

TR-13ec1837-d41a Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-865cd4e9-f7d8 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 500

TR-3b253d75-225a Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-f495bd55-83a9 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-3b5be386-a042 Intercontinental Specialty Fats Sdn Bhd CPO Segregation 1,000

TR-b75c7956-7e6c Intercontinental Specialty Fats Sdn Bhd CPO Segregation 500

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. Non-were raised during this audit. NC Number: NA Date: Reference to standard: Standard requirement: Evidence of non-compliance:

RSPOPC-SUM-REPORT.F01 MAY 2014 Page 57 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

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 Rimmer palm oil mill and its supply base is Rimmer and Silabukan estate was audited against RSPO SCCS. The mill processing capacity is 60 ton FFB per hour with throughput of 38 to 48 ton. The mill is capable of handling SG supply chain model. However, downgrading to a lesser supply chain model is done by internal system where linking of both FFB purchasing and weigh bridge were carried out automatically. 5.10 Final Certification decision by Control Union for the RSPO SCCS Audit of the POM Recommendations made: Yes Summary of non- None Found 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: June 2015

6.2 Date for Closure of N on-Conformities See sections above for details of NC’s, if any • All major NCs to be closed by: 60 days from the issuance date • All minor NCs to be closed by: Before next surveillance audit

RSPOPC-SUM-REPORT.F01 MAY 2014 Page 58 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

6.3 Signing by the Client I the undersigned, being the most senior relevant management representative of the operation seeking or holding certification, agree with the contents and audit findings as presented in this document . I also confirm: • Acceptance of liability in execution of the instructions given. • That this company was made aware that the findings of the audit team are tentative; pending review and decision making by the duly designated representatives of Control Union Certifications. • That during the closing meeting all agenda items was covered by the Lead Auditor.

Acknowledged by: Name: Sin Chuan Eng Position: Head of Sustainability Date: 02/08/2014 Signature

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

Date: 01/08/2014 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: Gerben Stegeman Position: Certifier

Date: 20-09- 2014 Signature

RSPOPC-SUM-REPORT.F01 MAY 2014 Page 59 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

PART 7: APPENDICIES

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

Kok Foh Estate

Chong Weng Chan Kok Foh Estate Estate

RSPOPC-SUM-REPORT.F01 MAY 2014 Page 60 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

Kg. Batu Peti (Asli)

Small Holders

Ladang Bukit Tinggi

Small Holders

Ladang Yayasan Negeri

Small Holders

Small Holder (Orang Kaya)

Felcra Lakal

Felcra Lakal Small Holder (Rantau Genting)

Pasoh Permanent Forest Reserve

Small Holder (En. Zainal)

Small Holder (En. Arip)

RSPOPC-SUM-REPORT.F01 MAY 2014 Page 61 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

Kampong Temeris Ladang Sialang

Sains

Felda Kepis Negeri Sembilan Cement Industries Hutan Rezab NSCI Jeram Padang Selatan

Felda Kepis Ldg Ikatan Aktif

NSCI Felda Bukit Rokan Felda Bukit Rokan

Sabai Estate

Cheng Kong Hon (Small Holder)

S.Letchumanan (Small Holder) Tuan Estate

Ng Kin Onn (Small Holder)

Lai Kam Sion (Small Holder) Yang Mook Sui (Small Holder)

RSPOPC-SUM-REPORT.F01 MAY 2014 Page 62 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

Chong Sow San Kg. Sri Telemong (Small Holder)

Onn Swee Art Work

Ming Kee Bird Nest

Telemong Forest Reserve

Kg. Sungai Perdak Telemong Forest Reserve

Telemong Forest Reserve

RSPOPC-SUM-REPORT.F01 MAY 2014 Page 63 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

Hutan Simpan Kemasul

Kg. Jerakan Taman Murni Kg. Kuala Kaung Kg. Sempadan Lanch ang Estate

Hutan Simpanan Kemasul

Sg. Pertang Estate

Hutan Simpan Kemasul

To Hutan Simpan Kemasul

Rubber Small Holder

Kampung Nyatoh

Taman Ladang Seremban Bunga Sejati

Kampung Ulu Rantau Oil Palm Kampung Batu Sebelas Small Holders

Kampung Ribu Kampung Baru India Kombok

Oil Palm Small Holders Oil Palm Small Holders

Ladang Ulu Kanchong

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RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

Ladang Ladang Saba Renjuk

Ladang Renjuk Kemasul Forest Reserve Kemasul Forest Weng Hup Reserve

Green Line Sang Lee Estate

Sang Lee Estate

Sang Lee Estate

Kg. Air Panas

Kg. Sepri

Kg. Baru

Kg. Bt Dua

Kg. Bt Dua

Sek Keb Pedas

Kg. Pinggiran Pedas Taman Pinggiran Pedas

Institutes Latihan Perindustrian Pedas

RSPOPC-SUM-REPORT.F01 MAY 2014 Page 65 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700

RSPO Principles & Criteria Annual Surveillance Assessment Report Report Number CU817884

Appendix 2: List of Abbreviations BRC British Retail Consortium BOD Biochemical oxygen demand CHRA Chemical Health Risk Assessment CoC Chain of Custody COD Chemical oxygen demand CPO Crude Palm Oil CSR Corporate Social R esponsibility CU Control Union CUC Control Union Certifications DOE Department of Environment DOSH Department of Safety and Health EFB Empty Fruit Bunch EIA Environment Impact Assessment ERT Endangered Rare or Threatened species EU European Union FFB Fresh Fruit Bunch FSC Forest Stewardship Council FSC COC Forest Stewardship Council Chain of Custody FSC FM Forest Stewardship Council Forest Management GGL Green Gold Label GMP Good Manufacturing Practice GOTS Global Organic Textile Standard GTP Good Trading Practice GPS Global Positioning System HACCP Hazard Analysis and Critical Control Point HIRARC Hazard Identification, Risk Assessment and Risk Control HCV High Conservation Value HCVF High Conservation Value Forest IPM Integrated Pest Management JAS Japanese Agricultural Standard LTI Lost Time Injury MDC MDC Publishers Sdn Bhd ( Company Name) MSDS Material Safety Data Sheet NC Non Conformity OE Organic Exchange OSH Occupational Safety and Health OSHAS Occupational Safety and Hea lth Assessment Scheme P&C Principle and Criteria PEFC Programme for the Endorsement of Forest Certification PK Palm Kernel POME Palm Oil Mill Effluent PPE Personal Protective Equipment RSPO Roundtable on Sustainable Palm Oil RSPO NI Roundtable on Sustainable Palm Oil National Interpretation SA8000 Social Accountability 8000 Sdn Bhd Sendirian Berhad SIA Social Impact Assessment SOCSO Social Security Organization SOP Standard Operating Procedure USDA/NOP United States Department of Agriculture – National Organic Program MT Metric Tones WHO World Health Organization

RSPOPC-SUM-REPORT.F01 MAY 2014 Page 66 of 66 Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia. Tel: +603-3377 1600 / 1700