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Alliance for Water Stewardship Assessment Report Prepared for Inghams Enterprises (NZ) Pty Ltd

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Alliance for Water Stewardship Assessment Report Prepared for Inghams Enterprises (NZ) Pty Ltd Alliance for Water Stewardship Assessment Report Prepared for Inghams Enterprises (NZ) Pty Ltd Prepared by: SGS SGS Ref.: PE-WAT-068 Version : 1 Date: 14th , 16th , 20 th and 28 th July 2020. This is a controlled document, which is subject to SGS document control procedures. It may not be reproduced in whole or in part without the express permission of SGS del Perú S.A.C.. REPORT DETAILS REFERENCE AWS -010 -INT -CAB -00 -05 -0020 -0053 CERTIFICATE No SGS20 20 _AWS00 11 (Provisional Certificate) REPORT TITLE ALLIANCE FOR WATER S TEWARDSHIP ASSESSMEN T REPORT DATE SUBMITTED: 31 st July 2020 CLIENT: Boram Keam Group Sustainability Manager 624 Waihekau Road, RD1, Waitoa 3380, New Zealand | PO Box 247, Te Aroha 3342, New Zealand M: +64 21 240 9878 [email protected] PREPARED BY: Ursula Antúnez de Mayolo Corzo – Lead Auditor SGS del Perú S.A.C. Av. Elmer Faucett 3348 Callao 1 - Perú [email protected] SIGNED: Ursula Antunez de Mayolo TECHNICAL Francesca Cerchia SIGNATORY STATUS FINAL NOTICE This document is issued by SGS under its General Conditions of Service accessible at http://www.sgs.com/terms_and_conditions.htm . Attention is drawn to the limitation of liability, indemnification and jurisdiction issues defined therein. Any holder of this document is advised that information contained hereon reflects SGS’s findings at the time of its intervention only and within the limits of Client’s instructions, if any. SGS’s sole responsibility is to its Client and this document does not exonerate parties to a transaction from exercising all their rights and obligations under the transaction documents. Any unauthorised alteration, forgery or falsification of the content or appearance of this document is unlawful and offenders may be prosecuted to the fullest extent of the law. Page 2 of 16 [ALLIANCE FOR WATER STEWARDSHIP ASSESSMENT July 31, 2020 REPORT ] Table of content REPORT DETAILS .................................................................................................................................................. 2 1 EXECUTIVE SUMMARY ................................................................................................................................. 4 2 SCOPE OF ASSESSMENT ............................................................................................................................. 5 3 DESCRIPTION OF CATCHMENT ................................................................................................................... 6 4 SUMMARY OF SHARED WATER CHALLENGES......................................................................................... 9 5 INDICATORS CHECKLIST ........................................................................................................................... 10 6 AUDIT FINDINGS .......................................................................................................................................... 11 7 SUMMARY .................................................................................................................................................... 15 8 OPPORTUNITIES FOR IMPROVEMENT ........................................... ¡ERROR! MARCADOR NO DEFINIDO. 9 CONCLUSIONS AND RECOMMANDATIONS ............................................................................................. 16 10 REFERENCES .................................................................................... ¡ERROR! MARCADOR NO DEFINIDO. Page 3 of 16 [ALLIANCE FOR WATER STEWARDSHIP ASSESSMENT July 31, 2020 REPORT ] 1 EXECUTIVE SUMMARY The scope of services covers the conformity assessment in compliance with the AWS International Water Stewardship Standard Standard Version 2-0 for Inghams Enterprises (NZ) Pty Ltd for their Te Aroha Primary Processing Plant, Waikato Region, New Zealand. The assessment has been completed in compliance with AWS Certification Requirements v 2.0 December 2019. As the audit was conducted during the COVID period, it was followed the “INTERIM POLICY NO. 1 ON REMOTE AUDITING - RECERTIFICATION AUDITS, EFFECTIVE JUNE 1, 2020”, where the requirements were fulfilled: • It was requested an authorization to AWS for a remote audit which was granted prior to the start of the audit. • Stakeholder were selected for virtual interviews which were 2 external stakeholders and 2 internal stakeholders. • The certificate to be issued will be “PROVISIONAL” pending the first opportunity for SGS to visit the site. Given the document review undertaken, and verification of evidence, SGS recommends that Inghams NZ is recertified to the AWS Core Certified status for a new 3-years cycle. As they closed successfully all the 7 gaps to version 2 identified at the 2019 audit, it is recommended the upgrade to the AWS International Water Stewardship Standard Standard Version 2. A total of three new observations to the V2-0 of the standard were identified during the course of the audit process. In relation to previous findings, there were only 2 observations which will remain open until next audit. The audit frequency is is recommended to continue to be annually. As the re-certification was conducted virtually, a site visit is planned to be conducted for the surveillance audit in 2021. Page 4 of 16 [ALLIANCE FOR WATER STEWARDSHIP ASSESSMENT July 31, 2020 REPORT ] 2 SCOPE OF ASSESSMENT The scope of services covers the conformity assessment in compliance with the AWS International Water Stewardship Standard Standard Version 2-0 for Inghams Enterprises (NZ) Pty Ltd for their Te Aroha Primary Processing Plant, Waikato Region, New Zealand. The assessment has been completed in compliance with AWS Certification Requirements v 2.0 December 2019. The AWS level assessed continues to be CORE. Ingham’s Te Aroha Processing Plant, located on Waihekau Road, Waitoa, is the single largest poultry primary processing plant in New Zealand. The site employs approximately 600 people, majority of whom are based in the three surrounding towns, namely Matamata, Morrinsville and Te Aroha. In addition, the plant’s activities support a significant number of local engineering and service industries. The scope of operation is “Food Processing”. The detailed activities of the company are: “Slaughter and further processing of Poultry and Poultry products including, chicken meat for human consumption, pet food and rendered bi products”. As the audit was conducted during the COVID period, it was followed the “INTERIM POLICY NO. 1 ON REMOTE AUDITING - RECERTIFICATION AUDITS, EFFECTIVE JUNE 1, 2020”, where the requirements were fulfilled: • It was requested an authorization to AWS for a remote audit which was granted prior to the start of the audit. • Stakeholder were selected for virtual interviews which were 2 external stakeholders and 2 internal stakeholders. • The certificate to be issued will be “PROVISIONAL” pending the first opportunity for SGS to visit the site. The remote audit was conducted virtually through the platform Teams and Zoom, over 3 days 14th, 16th, 20 th July 2020 which included interviews to the AWS representatives, external stakeholders and internal stakeholders. The 28th July 2020 was to review final evidence. Inghams NZ provided the requested supporting internal documentation and records as evidence. Also, they provided public information issued by the councils and environmental experts. SGS provided feedback on observations and findings raised through the virtual audit. Page 5 of 16 [ALLIANCE FOR WATER STEWARDSHIP ASSESSMENT July 31, 2020 REPORT ] 3 DESCRIPTION OF CATCHMENT Ingham’s Primary Processing Plant is located within the Waihou-Piako catchment zone, which is one of the eight catchment zones defined in the Waikato Region by the Waikato Regional Council. The map of the catchment zones and the location of Ingham’s site are provided in Figures 1 and 2. Figure 1: Eight catchment zones in the Waikato Region Page 6 of 16 [ALLIANCE FOR WATER STEWARDSHIP ASSESSMENT July 31, 2020 REPORT ] Figure 2: Ingham's site location in the Waihou-Piako catchment zone The Waikato Regional Council’s website provides the following information on the Waihou- Piako catchment (Waikato Regional Council, 2017). The Waihou Piako zone includes the catchments of the Miranda Coast up as far as Kaiaua, the Waitakaruru River, the Piako River, the Waihou River, the Kauaeranga River, the Thames streams and the Tararu Stream. It includes all of the land that drains into the Firth of Thames from Kaiaua in the west to Tararu in the east, the major portion of which is the Hauraki Plains and Thames Valley catchments. The zone has a number of values that are considered important to its community, as well as to the wider Waikato regional community. These include the Waihou River system, the native forests of the Coromandel and Kaimai and Mamaku ranges, the Kopuatai Peat Dome, which is home to a number of rare plants and animals, and the Firth of Thames foreshore, which provides important habitat for migratory and resident seabirds. Page 7 of 16 [ALLIANCE FOR WATER STEWARDSHIP ASSESSMENT July 31, 2020 REPORT ] The upper catchments of the Coromandel, Kaimai and Mamaku ranges remain in indigenous vegetation, much of it under the management of the Department of Conservation, while the upper catchment of the Hapuakohe Range in the west is mostly planted in exotic Radiata pine forest. Development has converted most of the catchment to pasture (predominantly dairy farming) and in the lower reaches this is heavily dependent on flood protection. The zone also has a number of elements that have special significance
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