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RSPO Audit Report Audit Report 2nd Annual Surveillance Audit for PT. SUPRA MATRA ABADI Tanah Datar Mill and Its Supply Bases FMS40021 RSPO Membership number: 1-0022-06-000-00 RSPO Member name: PT. INTI INDOSAWIT SUBUR Audited Address: Tanah Datar Mill: Kebun Tanah Datar Village, Talawi District, Batubara Regency, North Sumatera IDN Its supply bases: Tanah Datar Estate: Kebun Tanah Datar and Petatal Village, Talawi District, Batubara Regency, North Sumatera IDN Bahilang Estate, PT. Nusa Pusaka Kencana Bahilang Village, Tebing Tinggi District, Serdang Berdagai Regency, North Sumatera IDN Date of audit: 4 - 7 March 2017 COMMERCIAL- IN – CONFIDENCE I The contents of this report must not be disclosed to a third party without the agreement of the SAI Global Client Doc ID: 3843 / Issue Date May 2014 © SAI Global Limited Copyright 2008 - ABN 67 050 611 642 Page 1 of 206 Audit Report Table of contents Page Executive Overview 4 Abbreviations Used 5 1.0 SCOPE OF THE ASSESSMENT 7 1.1 Introduction 7 1.2 Audit Objective 7 1.3 Scope of Certification 7 1.3.1 Palm Oil Mill 8 1.3.2 Oil Palm Estate 8 1.4 Location of Mill and Estates 8 1.5 Description of Supply Base 11 1.6 Date of Plantings 11 1.7 Area of Plantation 11 1.8 Approximate Tonnages Offered for Certification (CPO and PK) 12 1.9 Other Certificates Held 15 1.10 Organisational Information/Contact Person 15 1.11 Time Bound Plan for Other Management Units 15 1.12 Partial Certification Requirements 19 1.13 Date of Issue of Certificate 19 2.0 AUDIT PROCESS 19 2.1 Certification Body 19 2.2 Audit Methodology 20 2.3 Qualification of the Lead Auditor and Audit Team Members 20 2.4 Stakeholder Consultation 21 2.5 Date of Next Surveillance Visit 23 3.0 AUDIT FINDINGS 23 3.1 Action taken on previous audit issues 23 3.2 Claim and use of certification mark and or logo 23 3.3 Description of audit findings 24 3.3.1 RSPO Principle and Criteria, Indonesian National Interpretation 24 3.3.2 Mill Supply Chain Requirements 160 3.3.2.1 Supply Chain Certification Standard 162 3.3.2.2 Supply Chain Certification System 173 3.4 Recommendation 175 3.5 Environmental and social risk for this scope of certification for 175 planning of the surveillance audit 3.6 Acknowledgement of Internal Responsibility and Formal Sign-off of 175 Assessment Findings List of Tables Page 1 Mill and Estates GPS Locations 8 2 FFB Production of the Supply Base 11 3 Age Profile of Planted Palms 11 4 Land use Description in 2016 12 5 Estate and Area Planted 2016 12 6 Tanah Datar and Bahilang Estate FFB Production Trend 2011 – 13 2015 7 Tanah Datar Mill Total CPO and PK Production of 2015 and Estimate 13 Production of 2016 WORK ITEM: WI-646853 Doc ID: 3843 / Issue Date May, 2014 © SAI Global Limited Copyright 2008 - ABN 67 050 611 642 Page 2 of 206 Audit Report 8 Actual Tanah Datar Mill Production of CPO and PK 2015 14 9 Estimated Tanah Datar Mill Production of CPO and PK 2016 14 10 Certificates Held by Mill and Estates 15 11 RSPO Certification Time Bound Plan 16 12 List of internal and external stakeholder 22 13 Actual Tanah Datar Mill CPO and PK Delivered in 2015 23 List of Figures Page 1 Figure 1 Map of Tanah Datar Mill and Estate PT Supra Matra Abadi 9 Location 2 Figure 2 Map of Bahilang Estate PT. Nusa Pusaka Kencana 10 Location List of Appendices Page A Audit Record 196 B Previous nonconformities, corrective actions and status 200 C Nonconformities, Corrective Actions and Observations 201 Summary D Stakeholder’s issues and comment 204 E Definition of, and action required with respect to audit findings RSPO 207 PC F Definition of, and action required with respect to audit findings RSPO 208 SC WORK ITEM: WI-646853 Doc ID: 3843 / Issue Date May, 2014 © SAI Global Limited Copyright 2008 - ABN 67 050 611 642 Page 3 of 206 Audit Report Executive Overview This is the second (2nd) annual surveillance audit visit on 4 - 7 March 2017 against the RSPO Principles and Criteria for Sustainable Palm Oil Production, Indonesia National Interpretation 2017 and RSPO Supply Chain Certification Standard, CPO Mill, Module E Mass Balance, November 2014. PT. Supra Matra Abadi – Tanah Datar Mill operations is comprised one (1) Palm Oil Mill, one (1) FFB supply base owned by PT. Supra Matra Abadi and one (1) FFB supply base owned by PT. Nusa Pusaka Kencana. Four (4) Major and three (3) minor non-conformances were issued during this audit. One of NC’s was recurrence from last surveillance audit and it upgraded to Major NCR. Follow up audit has been conducted and Major NCRs were closed. The estimate figures of production offered based on this audit are: The Mill has calculated the net GHG emissions using The RSPO Palm GHG Calculator Version 3.0.1 and that data inputs are verified to be accurate. Capturing the information about summary of net GHG emissions, summary of field emissions and sinks, and summary of mill emissions and credits. Summary of net GHG emissions Emissions per Product tCO2e/tProduct Production t/yr CPO 0.5 FFB processed 112,120 PK 0.5 CPO Produced 21,600 Land use Description ha Extraction % OP planted area 1,957 OER 21,600 OP planted on peat 0 KER 6,081 Conservation (forested) 0 Conservation (non-forested) 9 Total 2,081 Summary of field emissions and sinks Own Crop Group 3rd Party Total tCO2 tCO2e/t tCO2 tCO2e tCO2 tCO2e/t tCO2 tCO2e/ e FFB e /tFFB e FFB e tFFB Emissions Land Conversion 19,328.56 0.59 0 0 0 0 *CO2 Emissions from Fertilizer 1,178.55 0.04 0 0 0 0 **N2O Emissions 2,170.73 0.07 0 0 0 0 Fuel Consumption 422.83 0.01 0 0 0 0 Peat Oxidation 0.00 0.00 0 0 0 0 Sinks Crop Sequestration -18,320.91 -0.56 0 0 0 0 Conservation 0.00 0.00 0 0 0 0 Sequestration Total 4,779.76 0.15 0 0 16,628.64 0 Summary of mill emissions and credits tCO2e tCo2e/tFFB WORK ITEM: WI-646853 Doc ID: 3843 / Issue Date May, 2014 © SAI Global Limited Copyright 2008 - ABN 67 050 611 642 Page 4 of 206 Audit Report Emissions POME 5,957.49 0.05 Fuel Consumption 11.36 0.00 Grid Electricity Utilization 58.71 0.00 Credits Export of Grid Electricity -180.81 0.00 Sales of PKS -13,475.00 -0.12 Sales of EFB 0.00 0.00 Total -7,628.26 -0.07 Palm Oil Mill Effluent (POME) Treatment: Divert to compost 0 % Divert to anaerobic digestion 100 % POME Diverted to Anaerobic Digestion: Divert to anaerobic pond 100 % Divert to methane capture (flaring) 0 % Divert to methane capture (electricity generation) 0 % WORK ITEM: WI-646853 Doc ID: 3843 / Issue Date May, 2014 © SAI Global Limited Copyright 2008 - ABN 67 050 611 642 Page 5 of 206 Audit Report Abbreviations Used AMDAL Environmental Impact Analysis (Analisis Dampak Lingkungan) BOD Biological Oxygen Demand BPN National Land Agency (Badan Pertanahan Nasional) CPO Crude Palm Oil CSR Corporate Social Responsibility EFB Empty Fruit Bunch FFB Fresh Fruit Bunch FRF Fractionation and Refinery Factory GPS Global Positioning System HCV High Conservation Value HGU Land Use Title (Hak Guna Usaha) HPH Forest Authority Concession (Hak Penguasaan Hutan) IPM Integrated Pest Management ISO International Standards Organisation ISPO Indonesia Sustainable Palm Oil KHT Permanent worker (Karyawan Harian Tetap) KCP Kenel Crushing Plant KTU Head of Administration (Kepala Tata Usaha) KUD Village Cooperation (Koperasi Unit Desa) kWH Kilo Watt Hour LCC Legume cover crops LUK Estate Unit Report (Laporan Unit Kebun) LUP Mill Unit Report (Laporan Unit Pabrik) MB Mass Balance MSDS Material Safety Data Sheet NGO Non-Government Organisation OHS Occupational Health and Safety P2K3 Safety Committee PEL Environmental Evaluation Manual (Pedoman Evaluasi Lingkungan) PHL Daily worker (Pekerja Harian Lepas) POM Palm Oil Mill PPE Personal Protective Equipment PK Palm Kernel PKB Collective Working Agreement (Perjanjian Kerja Bersama) PKOF Palm Kernel Oil Factory RABQSA Quality Society of Australia RKL Environmental Management Plan (Rencana Pengelolaan Lingkungan) RPL Environmental Monitoring Plan (Rencana Pemantauan Lingkungan) RSPO Roundtable on Sustainable Palm Oil SA Social Accountability SCCS Supply Chain Certification System SIA Social Impact Assessment SP Worker Union (Serikat Pekerja) SPSI Indonesian Worker Union (Serikat Pekerja Seluruh Indonesia) TLV Threshold Limit Value TPH Ton Per Hour Traksi Organization work unit who is responsible to provide heavy equipment, transportation equipment, and also maintaining road condition WWTP Waste Water Treatment Plant WORK ITEM: WI-646853 Doc ID: 3843 / Issue Date May, 2014 © SAI Global Limited Copyright 2008 - ABN 67 050 611 642 Page 6 of 206 Audit Report 1.0 SCOPE OF THE ASSESSMENT 1.1 Introduction SAI Global conducted audit of audit of PT Supra Matra Abadi, Tanah Datar Mill and Its Supply Bases on 4 - 7 March 2017 with Major and minor Nonconformities identified. The purpose of this audit report is to summarise the degree of compliance with the relevant criteria, as defined on the cover page of this report, based on the evidence obtained during the audit of your organisation. SAI Global audits are carried out within the requirements of SAI Global procedures that also reflect the requirements and guidance provided in the international standards relating to audit practice such as ISO/IEC 17021, ISO 19011, RSPO Certification System, relevant RSPO Supply Chain Certification System and other normative criteria.
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