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MQ III IBD Revisão 16.03.2015 GED/DOCUMENTOS/MODELOS E REFERENCIAS/2-SETOR DE INSPEÇÕES/2_2-RELATÓRIOS DE INSPEÇÃO/2_2_30_1_3_En – RSPO P&C Public Summary Report

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RSPO PRINCIPLES & CRITERIA PUBLIC SUMMARY REPORT

Agropalma group Mills

(CRAI/AGROPAR, AMAPALMA,

AGROPALMA and CPA)

Tailândia and Acará, Pará, Brazil

Lead Auditor: Álvaro Garcia

Certification. 22/07/2016

IBD CERTIFICAÇÕES LTDA

Rua Amando de Barros, 2275 CEP: 18.602-150 Botucatu – SP – Brasil

Tel / fax: +55 14 3811-9800

www.ibd.com.br – [email protected]

mailto:[email protected]

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Contents

1. Scope of the Certification Audit

1.1 Normative references

1.2 Company and Contact Details

1.3 RSPO Membership Details

1.4 Audit type

1.5 Location of the Palm Oil Mill

1.6 Palm Oil Mill Output and Approximate Tonnages Certified

1.7 General Description of Supply Base

1.7.1 Location of the Supply Base

1.7.2 Statistics of the Supply Base and Estimated Tonnes of FFB/year

1.7.3 Biodiversity (Conservation & HCV Area for the respective Supply Bases)

1.7.4 Calculation of the Number of Production Units (N) to Sample for the Mill

1.7.5 Calculation of the number of subcontractors to be sampled

1.8 Progress of associated Smallholders or Out-growers towards compliance

1.9 Location Map for this Certification Unit

2. Partial Certification

2.1 Management Organization

2.2 Time-bound plan

2.3 Progress made on the time-bound plan

2.4 Non-conformities

3. Audit Process

3.1 IBD - The Certification Body

3.2 Audit Team

3.3 Audit Methodology

3.3.1 Audit Agenda

3.3.2 List of stakeholders consulted prior to and during the audit.

3.3.3 Outline of how stakeholder consultation was managed.

3.3.4 Issues that arose during stakeholder consultation and company responses.

4. Audit Findings

4.1 Summary of findings

4.2 Non conformity register

4.2.1 Verification of previous assessment non-compliances

4.2.2 New non-compliances raised at this audit

4.2.3 Observations

4.3 Lead Auditor Recommendations for the RSPO Principles & Criteria certification.

4.4 Comments for next audit.

5. Formal signing of audit findings

5.1 Acknowledgment of internal responsibility by the Client

5.2 Signing by the Lead Auditor.

6. Major non-compliances follow-up actions

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1. SCOPE OF THE CERTIFICATION AUDIT

1.1 Normative references The Palm Oil Mill and the supply base was audited against the following documents: RSPO International Principles and Criteria (April, 2013 version) National Interpretation (approved version XX/20XX) RSPO Supply Chain Certification (November 2014 version) New Planting Procedures (September, 2009 version)

1.2 Company and Contact Details Company name Crai/Agropar, Amapalma, Agropalma and CPA mills (Agropalma Group)

Business address Alameda Santos, 466 – 10o andar, CEP: 01418-000, São Paulo, Brasil

Scope Production of palm oil and palm kernel.

Products Crude Palm Oil and Palm Kernel.

Contact person Tulio Dias

Telephone Tulio Dias Telephone +55 11 2505 6400, +55 (11) 9 7220 5465

E-mail [email protected]

Web site www.agropalma.com.br

Other certifications held DNV: ISO 9001, ISO 14001, OHSAS 18001, ISO 22000 and FSSC 22000. IBD Organic. Ecosocial. JAS organic. BioSuisse, USDA Organic.

1.3 RSPO Membership Details RSPO membership number 1-0003-04-000-00

Parent company as applicable

Agropalma Group

1.4 Audit type Date of previous audit 10/08 to 14/08/2015

Date of this audit 18/07 to 22/07/2016.

Main or ASA (1 to 4) Main audit (recertification)

Date of next surveillance audit

Within 9 – 12 from this audit.

1.5 Location of the Palm Oil Mill Palm Oil Mill (POM)

Location Address Mill Capacity GPS Reference

Name MT/Hour Longitude Latitude

Crai/Agropar Mill Road PA 150, KM74, Direito - Tailândia, PA – Brasil

72 48º47’47.85ºW 2º31’36.34”S

Amapalma Mill Road PA 150, KM74, Direito - Tailândia, PA – Brasil

60 48º47’49.86ºW 2º31’29.59”S

Agropalma Mill Road PA 150, KM74, Esquerdo - Tailândia, PA – Brasil

60 48º42’17.65ºW 2º32’34.06”S

CPA Mill Rodovia PA 150 Km 50, Esquerdo, Acará – PA - Brazil

24 48º35’11.78ºW 2º15’10.54”S

1.6 Palm Oil Mill Output and Approximate Tonnages Certified The 12 month output is the average over any 12 month period and the actual production for the 12 months from the date of certification will be included in the annual summary. These figures exclude any output product from non-certified suppliers. For the 12 month period ending June 2016 the mill received 677.279 mt of FFB.

The estimate for the last 12 months is applicable to Annual Surveillance Audits and is the Projection for the next 12 months from the previous audit.

The actual production for the last 12 months is the audited quantity since the last audit. The projection for the next 12 months is given by the company.

FFB received and processed by the mill for the 12 months prior to this audit: Mt RSPO Certified FFB: 677.279

Mt Conventional FFB: 0

Estimate for last 12 Months (MT)

IP (ASA audits).

Actual Production for last 12 months

(MT) IP

Projection for next 12 Months (MT)

IP

CPO PK

CPO PK

CPO PK

CRAI/AGROPAR

72.028 14.957 37.233 7.338 48.203 9.641

AMAPALMA

58.228 12.092 50.925 10.441 40.169 8.034

AGROPALMA

40.167 8.341 39.030 7.114 33.475 6.695

CPA

10.468 2.174 8.274 1.306 16.068 3.214

Notes: All four mills receive FFB from a RSPO certified supply base: Departments I, II, III, IV, V, VI, XV and XVI (owned plantations) as well as associated smallholders and outgrowers There is no possibility of weighing the PK as each mill has its own kernel crushing plant inside. PK is estimated considering PK=PKO÷0,45.


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1.7 General Description of Supply Base The supply base of FFB for the Agropalma Group comes from the eight Agricultural Sectors, as seen in the table below as well as from Associated Growers. FFB is delivered preferably from the closest Department and so all the supply base as below is included in the audit. - There are 43 associated growers are referred to as “Partners” and vary in size from 6ha to just over 2.000ha. The Company has commercial long term contracts with all of them. - There are 192 family farmers organized in 3 associations whereby there are up to 100 “smallholders”, each with 6-10ha planted. Management of the associations is by way of Board, commanded by a President. Each family farmer is responsible for manage his/her own plantation. They may also use work contracted out to Family Farmers Consortium that employs workers. It is noted that Agropalma provide agronomic support to all Associated Growers by way of 14 professionals and

all partners are visited at least once per week. All the Associated Growers must have an agreement to manage their oil palm in accordance with the agronomic advice given by Agropalma Group and in accordance with the applicable indicators of the National or Local Interpretation. The supply base of FFB for the CPA Mill comes preferably from the department VI, which is managed according organic certification rules. It is very important to register that CPA mill did not received last year non-organic FFB from department V (which is located just 10km from the mill). Actually, for the ten year period from 2005 up to 2014, CPA mill processed FBB from non-organic departments in 9 years; just in 2014 to 2016 CPA mill processed FFB only from department VI. The choice of which department is used to supply CPA mill is a company decision and it is based in market and internal logistic drivers. As management structure (human resources, infra-structure, health and safety in labour, quality control, environmental management, IPM management, top management, etc.) is the same to all 8 agriculture departments and 4 mills.

1.7.1 Location of the Supply Base

Oil Palm Plantation (OPP) Location Address

GPS Reference

Name Longitude Latitude

Departamento I Rodovia PA 150 Km 74, Direito. Tailândia/PA 48° 47’18” 2°31’41”

Departamento II Rodovia PA 150 Km 74, Esquerdo.

Tailândia/PA 48° 43’50” 2°32’57”

Departamento III Rodovia PA 150 Km 74, Direito. Tailândia/PA 48° 49’35” 2°34’47”

Departamento IV Rodovia PA 150 Km 94, Direito. Moju/PA 48° 54’15” 2°39’11”

Departamento V Rodovia PA 150 Km 65, Esquerdo.

Tailândia/PA 48° 43’37” 2°29’32”

Departamento VI Rodovia PA 150, Km 50, Acará/PA 48° 45’10” 2°15’03”

Departamento XV Rodovia PA 150 Km 74, Esquerdo.

Tailândia/PA 48° 34’36” 2°35’48”

Departamento XVI Rodovia PA 150 Km 74, Esquerdo.

Tailândia/PA 48° 38’44” 2°33’16”

Area Leased from Altino Moju 48°57'59,24" 2°30'35,7

4" 192 Family Farmers and 43

Integrated Outgrowers Tailândia, Moju and Tome-Açú Several Several

1.7.2 Statistics of the Supply Base and Estimated Tonnes of FFB produced per year

Name Area of Oil Palm (Ha) Estimated Tonnes FFB/Yr

Planting Years

Cycle (Years) Total Production

Departamento I 4.820 4.820 65.000

2013;2010;

1992

1991;1989;

1988

1987;1986;

1985

25

Departamento II 5.194 5.167 55.000

2013;2012;

20101999;1

994;199319

92;1991;19

84

25

Departamento III 6.570 6.570 135.000

1999;199;1

997

1996;1995;

1992

25

Departamento IV 4.954 4.954 93.000 2001; 2000;

1999; 1998 25

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Departamento V 6.177 5.958 120.000

2011;2010;

2007,

2004;2002;

2001

25

Departamento VI 4.107 2.989 50.000

2010, 2011,

2000, 2001,

1996, 1990,

1989

25

Departamento XV 4.149 4.149 65.000 2010;2009;

2008;2006 25

Departamento XVI 3.090 3.090 60.000 2010;2009;

2008;2007 25

Area Leased from Altino 505 505 7000

2010; 2005;

2004; 2003;

2000; 1999;

1998

25

Total own plantations 39.566 38.202 650.000

Family Farmers and Integrated

Outgrowers

8.601 8.011 140.000

2013;2012;

2011;

2010;2009;

200820097;

2006;2005

2004;2003;

2002;2001;

2000;19991

998;1986

25

Total 48.167 46.213 790.000

1.7.3 Biodiversity (Total Conservation & HCV Area for the respective Supply Bases)

Oil Palm Plantation Biodiversity.(Total Conservation & HCV Area) Hectares.

Name Conservation HCV Comments

Departamento I 5.500 5.500 ----

Departamento II 8.398 8.398 ----

Departamento III 4.711 4.711 ----

Departamento IV 5.958 5.958 ----

Departamento V 11.695 11.695 ----

Departamento VI 11.593 11.593 ----

Departamento XV 6.791 6.791 ----

Departamento XVI 8.578 8.578 ----

Area Leased From Altino 0 0

Area leased cover only palm plantation area.

Total Company Conservation Area 63.224 63.224 ----

Family Farmers and Integrated

Outgrowers 13.090* 13.090

Forest reserve of mister Altino is considered in this figure.

Total 76.314 76.314 ----

Considering then, the total Area of Oil Palm and the total Conservation Area, the total Certified Area corresponds to 124.481 ha.

1.7.4 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

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8 Departments plus Area Leased from Altino

2,4 Rounded up to 3 192 family farmers + 43 integrated outgrowers

Family Farmers – Total of 192 farmers; N = 12 famers Integrated outgrowers: From 10 to 50 ha – Total of 11 farmers N = 3 farmers From 51 to 500 ha – Total of 28 farmers N = 5 farmers Plus than 501 ha – Total of 4 farmers N = 2 famers

Explanation as to the selection of estates sampled

It Was considered the logistic, size, location and historical of audit to choose the areas to be audit. In addition, for family farmers and integrated outgrowers it was considered the region (Tailândia, Tomé-Açú and Moju), the category and size of the property (family farmers; from 10 to 50 há; from 51 to 500 há; and plus than 501 há).

The table below shows the oil palm plantations that were included in this audit, with the operations reviewed in the field, the number of sample sites within the plantation and the number of worker interviews. Comments are added as applicable.

Oil palm plantation. Operation No of sample

sites

No of Intervi

ews Comments.

Department V

Harvesting, Fertilization (POME), Road checking, Transportation of people,

Transportation of fruits, Food facilities, Riparian zone

2 3 ----

Department VI

Harvesting, Fertilization (POME), Road checking, Transportation of people,


4 7 ----

Department II Nursery area and storage are of

fertilizer 1 1 ----

Department IV

Harvesting, Road checking, Transportation of people,


3 3 ----

Department VII

Harvesting, Agrochemical Application, Road checking, Transportation of people,


2 7 ----

Integrated Farmer - ANTÔNIA MARIA

NOGUEIRA (up to 10 há)

Harvesting, Palm Production activities, Storage of inputs

1 5 ----

Smallholder Farmer - FRANCISCO

RODRIGUEZ DE SOUZA (up to 10 há)


1 1 ----

Smallholder Farmer - YASID ALMEIDA (up to

10 há)


1 1 ----

Smallholder Farmer - NILVALDO

CANTANHEDE (up to 10 há)


1 1 ----

Smallholder Farmer - FILOMENA FREITAS SILVA (up to 10 há)


1 1 ----

Smallholder Farmer - MARIA ELIZABETE DE SOUZA SILVA (up to 10

há)


1 1 ----

Smallholder Farmer - JOAO BATISTA DE SILVA (up to 10 há)


1 1 ----

Integrated Farmer - DOMINGOS OTAVIO F.

Harvesting, Palm Production activities, Storage of inputs,

2 1 ----

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DE LIMA (From 10 to 50 ha)

Transportation of people, Transportation of fruits, Food

facilities, Riparian zone

Integrated Farmer - KAZUHIKO ISHII (From

51 to 500 ha)




2 1 ----

Integrated Farmer - MASSAO OZAKI (From

51 to 500 ha)




2 1 ----

Integrated Farmer – HITOFUMI KIMURA (Up

than 501 ha)




2 3 ----

Integrated Farmer – ARNALDO SEYGO (Up

than 501 ha)




2 3 ----

Integrated Farmer – OSVALDO IKEDA (From

10 to 50 ha)




1 2 ----

Integrated Farmer – ANTONIA MARIA

NOGUEIRA SOARES (From 51 to 500 ha)




1 1 ----

Integrated Farmer – DIVINO HERALDO (From

51 to 500 ha)




3 9 ----

Integrated Farmer – MANOEL JOSÉ DOS

SANTOS (From 10 to 50 ha)




1 3 ----

Integrated Farmer – JOSÉ LINS DE OLIVEIRA (From 51 to 500 ha)




1 2 ----

Smallholder Farmer - MICHEL RODRIGUES

DIAS (up to 10 há)


1 1 ----

Smallholder Farmer - MANOEL RAMOS DE

OLIVEIRA (up to 10 há)


1 1 ----

Smallholder Farmer - IVANY MARIA

PATROCINIO (up to 10 há)


1 1 ----

Smallholder Farmer - EVALDO PORTILHO

BORGES (up to 10 há)


1 1 ----

Smallholder Farmer - LUCIVALDO

MAGALHÃES PORTILHO (up to 10 há)


1 1 ----

1.7.5 Calculation of the Number of Sub Contractors to be sampled.

N = 0.8√Y, where “Y” is the number of contractors, with the result always to be rounded “up” to the next whole integer. Where only a sample of the sub-contractors not previously assessed, or assessed earlier in the certification program, are to be preferred over those more recently assessed.

The table below shows the number of approved sub-contractors who may be contracted to be directly employed in the work of the certification unit. The number of sub-contractors actually contracted at the time of the audit is used to calculate the

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sample.

Number of sub-contractors.

Mill and workshops Farms

Approved: 33 Approved: 25

On site during audit: Y 30 On site during audit: Y 13

Number to audit: = 0.8√Y 5 Number to audit: = 0.8√Y 3

Names Activity Audited Names Activity Audited

PROSEGUR BRASIL S/A Security Yes GR S/A Restaurant Yes

Renascer Construções Maintaining

activities Yes

BEZERRA TRANSPORTES LTDA

Transport of rural workers

Yes

MC Construções Maintaining

activities Yes AWE Viação

Transport of rural workers

Yes

Novo Horizonte Construções

Maintaining activities

Yes ----- ----- -----

Abençoada Serviços Industriais

Maintaining activities

Yes ----- ----- -----

Explanation as to the selection of sub-contractors sampled:

The subcontractors present at company at the moment of the audit were audited. According to the audit team evaluation, there was no need to interview the other subcontractors not present at the moment of the audit.

1.8 Progress of associated Smallholders or Out-growers towards Compliance with relevant Standards - should be in accordance to the 3 year implementation plan

The Associated Growers (Family Farmers and Integrated Outgrowers) have been audited against the RSPO P&Cs since 2014 . During these two years, there were 45 integrated outgrower. However, after carrying out an LUCC assessment (according RSPO RaCP) Agropalma found two of its integrated outgrowers with liabilities and therefore decided to exclude them from the certification process until the situation is solved via a formal compensation process, that is already being carried out under RSPO RaCP.. It is important to register that Agropalma, did not exclude these two suppliers. They lost the certification status and consequently the premium price Agropalma pays to certified growers. However, Agropalma continue purchasing FFB from them and processing these fruits in its newest mill (Parapalma Mill), which will receive RSPO Mass Balance Certification.

1.9 Location Map for this Certification Unit Note: Individual maps of the group members are available but it is not practical to reproduce them here. Each area of oil palm is individually managed as an integral part of a farm holding and the adjacent crops are all agricultural.

Map showing the neighbouring towns.

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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 Organization Item Criteria (Yes/No Description (if applicable)

2.1.1 Is the operation conducting a partial certification?

No

2.2.2 Is any company of the group, member of the RSPO? Which one?

---

2.2.3

Is there a clear relationship between the companies, where one company has the majority ownership or the management control of others?

---

2.2.4 Is there a clear and achievable time-bound plan prepared and in place?

---

2.2.5 Does the plan include all subsidiaries? ---

2.2 Time-bound plan

Not applicable.

2.3 Progress made on the time-bound plan

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Not applicable.

2.4 Non-compliances on the partial certification rules

Not applicable.

3. AUDIT PROCESS

3.1 IBD - The Certification Body IBD takes pride in being the largest certifier in Latin America and the only Brazilian certifier of organic products with accreditation through IFOAM (international market), ISO Guide 65 (European market regulation CE 889/07), Demeter (international market), USDA/NOP (North-American market), COR (Canadian market) and INMETRO/MAPA (Brazilian market), making its certificate global. Located in Botucatu-SP, Brazil, IBD has been in operation since 1992. Initially focused exclusively on the certification of organic product, after 2004, IBD began including certification services in the social-environmental area through the EcoSocial, Integra, RSPO and UEBT (Union for Ethical BioTrade) programs. Today, IBD certifies over 5,000 producers, covering an area of approximately 520 thousand hectares in cultivation and 3 million hectares under wild harvest management, throughout 16 countries. For more information regarding IBD Certificações, access www.ibd.com.br. RSPO Membership No: 8-0090-08-000-00. RSPO accredited by ASI on November 4th, 2014, worldwide (accreditation code RSPO-ACC-020).

3.2 Audit Team Lead auditor Alvaro Garcia (AG)

Audit team

Alexandre Harkaly (AH)

Lisbeth Carranza (LC)

Ana Maria Uribe (AU)

Cuahtemoc Cedillo (CC)

3.3 Audit Methodology

3.3.1 Audit Agenda

Date Time Location Program Auditor(s)

18/07/16 08:00

am Agropalma Refinery Office –

Belém/PA Opening meeting of SCC Refinery Audit and

P&C Audit AG and AH

18/07/16 09:00

am Agropalma Refinery Office –

Belém/PA SCC Audit / Meeting with Marcelo Bastos and

Tulio Dias to evaluate Principles 2 and 6 AG / AH

18/07/16 12:00

pm Agropalma Refinery Office –

Belém/PA Lunch Time -----

18/07/16 01:00

pm Agropalma Refinery – Belém/PA

Auditoria SCC / Meeting Instituto Peabiru e Conservation International to evaluate

Principles 2, 5 and 6. AG / AH

18/07/16 05:00

pm Agropalma Refinery – Belém/PA Closing Meeting of SCC Refinery Audit AG

19/07/16 09:00

am Agropalma Central Office –

Tailândia/PA

Opening meeting of P&C Audit - Team Presentation, ISO requirements for

conducting the audit, audit plan, signing declaration of conflict of interest and

answering questions

AG, AH, LC, AU and CC

19/07/16 10:00

am Agropalma Central Office –

Tailândia/PA

Meeting with Túlio Dias / Cristiane Paiva / Raquel Melo / Heisner Caetano / Ricardo

Tinoco to evaluate Principles 1, 2, 3, 4, 5, 6 and 7

AG/ AH / CD / AU / LC

19/07/16 12:00

pm Agropalma Central Office –

Tailândia/PA Lunch Time


19/07/16 01:00

pm

Agropalma Central Office / Agrochemical storage area, PPE washing and packaging disposal

– Tailândia/PA

Meeting with Túlio Dias / Paulo Gaia / Raquel Melo / Heisner Caetano / Ricardo Tinoco / Kátia Desmondes / Alessandra Bortolanza/

Felipe Zonta / João Martins / Rogério Aguiar / Lenes Brito / Paulo Gaia/ Joelson Barros and Visit agrochemical storage area, IPE washing and packaging disposal to evaluate Principles

1, 2, 3, 4, 5, 6 and 7


19/07/16 05:00

pm Agropalma Central Office /

Tailândia/PA Closing Meeting of the day between company

and auditors AG/ AH / CD / AU /

LC

20/07/16 08:00

am

Own Agropalma Farms / Meeting with Stakeholders /

Integrated Agropalma Farmers

Visit Agropalma production area and partners, interview employees, visit the Stakeholders to

evaluate Principles 1, 2, 3, 4, 5, 6 and 7


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20/07/16 12:00




20/07/16 01:00

pm

CPA Mill / Own Agropalma Farms / Visit to Stakeholders / Integrated Agropalma Farmers

Visit CPA Mill / Agropalma production area and partners, interview employees, visit the Stakeholders to evaluate Principles 1, 2, 3, 4,

5, 6 and 7


20/07/16 05:00




LC

21/07/16 08:00

am

Agropalma Mill / CRA/Agropar Mill / Own Agropalma Farms / Integrated and Smallholders

Farmers / Meeting with Stakeholders

Visit Agropalma Mill / CRA/Agropar Mill / POME station / Laboratory / Agropalma production area and partners, interview

employees, visit the Stakeholders to evaluate Principles 1, 2, 3, 4, 5, 6 and 7


21/07/16 12:00




21/07/16 01:00

pm

Parapalma Mill / Amapalma Mill / Own Agropalma Farms /

Integrated and Smallholders Farmers / Meeting with

Stakeholders

Visit Parapalma Mill / Amapalma Mill / POME station / Laboratory / Nursery area /

Agropalma production area and partners, interview employees, visit the Stakeholders to

evaluate Principles 1, 2, 3, 4, 5, 6 and 7


21/07/16 05:00




LC

22/07/16 08:00

am

Agropalma Central Office / Tailândia/PA / Integrated and

Smallholders Farmers / Agropalma School / Ambulatory

/ Agropalma refectory

Visit Integrated and Smallholders Farmers / Agropalma School / Ambulatory / Agropalma refectory / Visit Production area of partners

and interview employees to evaluate Principles 1, 2, 3, 4, 5, 6 and 7


22/07/16 12:00




22/07/16 01:00


Tailândia/PA Meeting with Agropalma employees and

subcontractors AG/ AH / CD / AU /

LC

22/07/16 03:00


Tailândia/PA Meeting between auditors to prepare the

closing meeting AG/ AH / CD / AU /

LC

22/07/16 04:00


Tailândia/PA

Closing meeting - Presentation the audit results, ISO requirements for conducting the audit, questions of clarification and thanks


3.3.2 List of stakeholders consulted prior to and during the audit. Name Category

AGROPALMA ADMINISTRATIVE PERSONNEL

Túlio Dias Social And Environmental Coorporative Manager

João Martins Jr. Social And Environmental Analist

Leonardo Oliveira Safety Engineer

Alessandro Roberio Marinho Technical Of Safety

Joelson Barros Technical Of Environmental

Emmanuel Campos Neto Analyst Of Sig

Ricardo Tinoco Phytosanitary And Research Manager

Rafael Rodrigues Analyst Of Processes

José Miranda Fernandes Industrial Manager Of Crai/Agropar/Amapalma Mills

José Anderson Barbosa Production Coordinator Of Amapalma Mill

Alcimara Silva Coordinator Of Sig Related With Mills

Manuel Raimundo Rodrigues Almeida Administrative Coordinator Of Crai/Agropar Mill

Alessandra Dias Bortolanza Quality Control Manager Of All Mills

Marcos Nunes Agricultural Coordinator

Fabio José Sousa Gonçalves Rh Coordinator

Diógenes Pessoa Agricultural Manager Of Cpa

Ednaldo Sampaio Production Coordinator Of Cpa

Dayner Technical Of Agricultural Labor Safety At CPA

Manoel Malaquias Industrial Coordinator Of Cpa

Carmem Mendes Safety Engineer

Tarcio Costa Industrial Engineer

Solange Silva Support Coordinator

Juan Esquivel Vargas Maintenance Coordinator Of Agropalma Mill

João Alberto Farias Cruz Production Coordinator Of Agropalma Mill

João Martins De Assis Production Coordinator Of Parapalma Mill

Marcos Miranda Cardoso Technical Os Safety At Agropalma/Parapalma Mills

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José Almir Marques Processes Coordinator At Pome Of

Agropalma/Parapalma Mills

Cristiane Paiva Responsible Of Communication With Stakeholders

Marcelo Bastos Lawyer Agropalma

Sr. Pereira Lawyer Consultant

Katia Delmondes Sig Analyst

Felipe Zonta Quality Operational Coordinator Of Agricultural

Activities

Raquel Melo Agricultural Manager

Edwin Almeida Agricultural Coordinator

Antonio Jorge Brandao Agricultural Coordinator

Ailton Jose Da Silva Agrochemical Application Supervisor

Flavio Matias Supervisor Of Department Vii

Isaac Martins Environmental Engineer

Leia Furtado Medical Labor

Heisner Caetano Environmental Manager

Antonio Jorge Soares Agricultural Coordinator Responsible For Integrated

Farmers

Francisco Damião Agropalma Analyst Production Responsible For

Integrated Farmers

Zeno Martins Agricultural Manager Responsible For Integrated And

Smallholder Farmers

Ana Caroline Nogueira Agropalma Analyst Production Responsible For

Smallholder Farmers

Lenes Brito Agricultural Assistant involved with agrochemical

Marcella Araujo RH Department

AGROPALMA CONTRACTORS (MILL)

Walter Leal Lelis Security Of Prosecur Company

José De Jesus Worker Of Novo Horizonte Company At Maintance Of

Agropalma Mill

José De Jesus Worker Of MC Construção Company At Maintance Of

Agropalma Mill

Edilson Tomé De Araújo Worker Of Renascer Company At Maintance Of

Agropalma Mill

Idevaldo Dos Santos Evangelista Worker Of Abençoada Serviços Industriais Company At

Maintance Of Agropalma Mill

AGROPALMA CONTRACTORS (OWN FARMS)

Gilmar Coelho Araujo Bus Driver Of Awe Aviação

Edson Donizetti De Vasconcellos Manager Of GR (Food Services)

Laihire Nunces Manager Of Gr (Food Services)

Elaine Santos De Brito Manager Of GR (Food Services)

João Gustavo Bus Driver Of Bezerra Transportes

GROWERS AND GROWERS WORKERS CONSULTED AT FARMS

Francisco Edilson De Souza Martins Smallholder Farmer

Francisco Rodriguez De Souza Smallholder Farmer Of Agua Preta

Yasid Almeida Smallholder Farmer Of Agua Preta

Nilvaldo Cantanhede Smallholder Farmer Of Agua Preta

Filomemia Freitas Silva Smallholder Farmer Of Agua Preta

Maria Elizabete De Souza Silva Smallholder Farmer Of Vila São José

Joao Batista De Silva Smallholder Farmer Of Vila Israel

Domingo Otavio Furtado De Lima Integrated Farmer Of Moju

Kazuhiko Ishii Integrated Farmer Of Tailândia

Massao Ozaki Integrated Farmer Of Tailândia

Hitofumi Kimura Integrated Farmer Of Moju

Valdemir Oliveira Moreira Worker Of Hitofumi Kimura

Vladimir Oliveira Moreira Worker Of Hitofumi Kimura

Arnaldo Seygo Integrated Farmer Of Moju

Ivamar Sampaio Lima Worker Of Arnaldo Seygo

Wilson Araujo Da Silva E Silva Worker Of Arnaldo Seygo

Arnaldo Silva Worker Of Arnaldo Seygo

Oswaldo Ikeda Integrated Farmer Of Tomé-Açú

Jose Damasceno Worker Of Oswaldo Ikeda

Divino Heraldo Integrated Farmer Of Tailândia

Francisco Lira Adminstrative Worker Of Divino Heraldo

Daniel Jesus Costa Worker Of Divino Heraldo

Denis Alves Viana Worker Of Divino Heraldo

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Everaldo Damasceno Worker Of Divino Heraldo

Manoel Guimarães Dias Worker Of Divino Heraldo

Ronax Dos Santos Worker Of Divino Heraldo

Antonio Rodrigues Worker Of Divino Heraldo

Antonio Claudio De Oliveira Worker Of Divino Heraldo

Antonia Maria Nogueira Soares Integrated Farmer Of Tailândia

Antonio Ferreira Soares Family Of Antonia Maria Nogueira

Raimundo Evangelista Worker Of Antônia Maria Nogueira

Elieu Gloria Da Silva Worker Of Antônia Maria Nogueira

Raimundo Nonato De Costa Worker Of Antônia Maria Nogueira

José Lins De Oliveira Integrated Farmer Of Tailândia

Manoel José Dos Santos Integrated Farmer Of Tailândia

Maria Das Gracas Da Silva Macedo Worker Of Manoel José Dos Santos

Raimundo Nonato Macedo Dos Santos Worker Of Manoel José Dos Santos

Manoel Ramos De Oliveira Smallholder Farmer Of Projeto III (Lote 150)

Michel Rodrigues Dias Smallholder Farmer Of Projeto Iii (Lote 144)

Ivany Maria Patrocinio Smallholder Farmer Of Projeto Iii (Lote 138)

Evaldo Portilho Borges Smallholder Farmer Of Projeto I (Lote 33)

Lucivaldo Magalhães Portilho Smallholder Farmer Of Projeto Ii (Lote 83)

OWN FARMS PERSONNEL INTERVIEWED AT FARMS

Raimundo Alves Da Silva Bento Rural Worker (Harvesting) Of Department IV

Edivaldo Araujo Rural Worker (Harvesting) Of Department IV

Rafael Lucas De Souza Pombo Rural Worker (Harvesting) Of Department IV

Edilberto Jesus De Oliveira Rural Worker (Harvesting) Of Department V

Antonio Carlos Da Silva Rosa Rural Worker (Harvesting) Of Department V

Almir Lima Da Silva Rural Worker (Harvesting) Of Department V

Carlos Da Costa Santos Rural Worker (Harvesting) Of Department VI

Lucinaldo Rural Worker (Harvesting) Of Department VI

Railson Rural Worker (Harvesting) Of Department VI

Paulo Costa Rural Worker (Harvesting) Of Department VI

Manoel Araújo Agricultural Supervisor Of Department VI

Eden Luiz Agricultural Supervisor Of Department VI

Gabriel Cardoso Rural Worker (Harvesting) Of Department VI

Lucides Maciel Agrochemical Application Operator Of Department VII

Altom Jose Agrochemical Application Operator Of Department VII

Lucidel Maciel De Souza Tractor Operator Of Agrochemical Application At Dep.

II

Joao Batista Da Silva Rural Worker (Harvesting) Of Department VII

Luciedson Oliviera Do Rosario Rural Worker (Harvesting) Of Department VII

Antonio Edvan De Lima Soares Rural Worker (Harvesting) Of Department VII

Raimundo Valmir Santos Rural Worker (Harvesting) Of Department VII

Antonio Comes Fernandez Ferreira Rural Worker (Harvesting) Of Department VII

Jesse Da Silva Oliviera Washing Operator Of Ppe Used At Agrochemicals

Application

MILL WORKERS INTERVIEWED AT MILLS

Alex Santos Ribeiro Sterilization Activity Operator Of Crai/Agropar Mill

Jedilson Rodrigues Pantoja Pressing Activity Operator Of Crai/Agropar Mill

Josiel Castro Furtado Energy Generator Operator Of Crai/Agropar Mill

Genivaldo Pereira Boiler Operator Of Amapalma Mill

Suzana Mescoite Da Silva Responsible For Weighbridge And Billing At

CRAI/Agropar/Amapalma Mills

Daniel Costa Security Chief Of Crai/Agropar Mill

Sergio Botelho Santiago Auxiliary Laboratory Of Crai/Agropar/Amapalma Mills

Rildo Rocha Agricultural Analyst At Pome Of Amapalma

José Carlos Costa Da Silva Pump Operator At POME Of Amapalma

Jonas Furtado Technical Of Work Safety Agropalma Mill

Ridael Souza Brigadist And Worker Of Cpa Mill

Manoel Ferreira Weighbridge Operator Of Cpa Mill

José Ribamar Laboratory Assistance Of Cpa Mill

Alex Pantoja Boiler Operator Of Cpa Mill

Reginaldo Leão André Sterilizer Operator Of Cpa Mill

Dilvane Oliveira Neves Pulley Electrical Operator Of Cpa Mill

Rafael Pimentel Da Costa Industrial Welder Of CPA Mill

Luciete Cardoso Da Silva Cleaner Assistant Of CPA Mill

Dorivaldo Da Silva Rodrigues POME Operator Of CPA Mill

Amarildo Nunes De Oliva POME Operator Of CPA Mill

Antônio Dionata Operator And Brigadist Of Agropalma Mill

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Ivanilson Cardoso Laboratory Assistant Of Agropalma Mill

NON GOVERNMENT INSTITUTIONS, SINDICATES AND LOCAL COMMUNITY

João Meirelles Director Of Instituto Peabiru (Ngo Located In Belém-

Pa)

Thiara Fernandes Project Manager Of Instituto Peabiru (Ngo Located In

Belém-Pa)

Fernanda Martinelli Project Coordinator Of Conservation International (Ngo

Located In Belém-Pa)

Francisco Vagner Correia Leite Lead Community Of Vila Auí-açu

Manuel Evangelista Carneiro Da Silva President Of Sindicate Of Rural Workers Located At

Vila Dos Palmares

Manoel Maciel Vice-President Of Associação Vila Nova Esperança

Samuel Evangelista Dweller Of Vila Nova Esperança

Angelita Dweller Of Vila Esmeralda

Lucivaldo Magalhães Portilho President Of Associação De Desenvolvimento

Comunitário Da Soledade

Carlos Da Costa Santos Member Of Sindicate Of Rural Workers Of Palmares

Francisco Edilson De Souza Martins President Of Associação Do Assentamento Calmaria

3.3.3 Outline of how stakeholders consultation was managed. During the audit planning was verified the official list of stakeholders updated by Agropalma and considering its features the most relevant external stakeholders to be interviewed were chosen. In total, were indicated 82 stakeholders, among them representatives of local communities and associations, unions, representatives of family farmers, integrated outgrowers and NGOs and government agencies. As sampling method was used to calculate N = 0.8√Y and selected 8 stakeholders that should be interviewed. Among these, were selected the Instituto Peabiru and Conservation International that have action focused on social and environmental development and know the region for a long time. Both offices are in Belém / PA and on the 18th / July the auditor Alexandre Harkaly interviewed them. As a method of consultation, interviews were conducted without the presence of Agropalma employees and such matter that the interviewed had complete freedom to answer the questions presented respecting the confidentiality in case of filing a complaint. And for help the two auditors whom do not speak Portuguese was available two translators hired by IBD.

3.3.4 Issues that arose during stakeholder consultation and company responses. Subject raised Company response and

proposed action to be taken. Audit team findings

At all interviews was obtained good appointments and no non conformity was identified during the interviews.

Positive input. No corrective action required.

Compliance with legal requirements was found during the audit.

Representatives of Rural

Workers Sindicate stated that

he is very pleased with some of

the accomplishments between

workers members from the

Labour Union and AGROPALMA,

which include:

- Since 2015, all workers are

included in a health plan

- They obtained a carnet in

exchange of other products.

With this card, they can

purchase some products in

different stores and at lower

costs;

- Since 2016, there has been an

increase for working

opportunities and this has

benefited the community;

- There has been a continuous

growth in the community –

internal migration due to work

opportunities in AGROPALMA;



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- Workers are receiving an

stipend equivalent to the time

they invest in transportation to

their work facilities;

They are happy with the opportunities given by AGROPALMA. They see more development in the community due to the production of palm oil in the region;

During the audit at the integrated farmers and smallholders was noted that: - Land ownership titles were unable to have access to. The property of the land is inherited. - Workers were adequately trained to the activities developed; - The payments of workers are done timely, including insurance; - Storage of agrochemicals is organized; - The fertilization plan developed by AGROPALMA is evident as it has been delivered to the producer; - These products include a Schedule and adequate quantities of the agrochemical products to be applied; - There has been good communication (written and spoken) with AGROPALMA; - Agropalma has a very good scheme of visitation and

capacitation of the farmers; - Is very clear for all the prices payed for the FFB and has no problem of payment; - All farmers have contract signed with Agropalma;



In interviews with Instituto Peabiru and Conservation International it was possible to view the history of work in the areas of Agropalma and related to the cultivation of palm. Was mentioned about the work was done by Instituto Peabiru in preparing the EISA and follow-up in Vila dos Palmares to assess the impact of the activity Agropalma in the region. The reports were positive in the sense that there was a beneficial impact on the local community and partner farmers involved at palma production. There were no reports that characterize a potential Non Conformity caused by Agropalma. CI reported the work done in monitoring endangered animal species in the areas of protection and palm cultivation of Agropalma. Protection areas of Agropalma are used to study the local fauna and to be data basis to



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evaluate the impact of palm cultivation at fauna and obtain important indicators in order to show that compared with other crops, palm shown that is an important option. Was reported that there is an external pressure of hunting at Agropalma areas, but in fact the company shows concern and has a surveillance system to minimize these problems.

4. AUDIT FINDINGS

4.1 Summary of findings.

Principle 1: Commitment to Transparency. Summary for Principle 1:

Criterion 1.1: Oil Palm growers and millers provide adequate information to other stakeholders on environmental, social and legal issues relevant to RSPO criteria, in appropriate languages and forms to allow for effective participation decision making.

Findings: Comments: Compliance

Was verified the next evidences: - The Official List of stakeholders, updated, with contacts, function, address and contacts; - Use more intense this year witth up to two communications per week. It has been found 9 communications occurrence per month; - Procedure for Internal and External Communication (NPG 16- date: 19.07.2016, Revision 14); 4-Follow Up of Records of Stakeholders. - That has other documents to register any kind of complaint; It was found as described in 6.2.1 that the Follow Up of the Stakeholder Record is updated and shows communications confirmation and decisions as well as the dates of complaints, withdrawal period and date of resolution of problems and a short description of the resolutions where possible, ie not covered by confidentiality.

Through the program ALO AGROPALMA the employee can call the extension 8213 for complaints and make suggestions for improvements and the external public uses forms. They are printed and are in the entrances or even can call by telephone 08007090706. There is also an email for complaints and grievances, [email protected]. There is a procedure for complaints and grievances drawn up jointly with interested parties. Supplemented by procedures "Demand Stakeholders" which guarantees anonymity, if requested. The company web site provides guidance for how to obtain information in both English and Portuguese. Hiring and positions vacant are advertised. An email address is available for information and the procedures for hiring are with the Recruitment and Selection department. There is an internal newspaper and information papers that are sent to all workers on a monthly base.

YES

Criterion 1.2: Management documents are publicly available except where this is prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes.

Summary of the findings for 1.2:


A list of Public documents is shown in the web page of AGROPALMA and is available for consultation by request. Commercially sensitive documents are not available as verified by the audit team.

All the documents that are publicly available are listed on the web site. Not all documents are available in hard format as they are expensive to produce. They are available for review, as are all internal documents. From the Agropalma website: “Available documents, among others:

Title deed and other land related documents;

Occupational Health Medical Control Program,

Environment risk prevention programs, PAE, Technical Report of Working

Environment Conditions; ECP, ECR, EIS, Probe Diagnostics and other socio-

environmental studies;

YES


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Documents related to reviews of areas of high conservation value;

Integrated Management System Manual, Rules of Procedures and Operational Routines;

Claim Details Report; Long term Economic and Financial

Sustainability Plan; Negotiation and Land Acquisition

Procedures; Continuous Improvement Plan; RSPO certification reports; Respect for Human Rights Policy (still

being developed but integrated in Human resource policy);

Current and historical prices paid to FFB suppliers”.

Criterion 1.3 Growers and millers commit to ethical conduct in all business operations and transactions.



Was verified the manual delivered to the employee Cristiane Paiva, where reports: - Sub-1 Presentation item, "Companies of Agropalma Group must operate within the existing laws of the country and ethical principles." Among the laws there is the Anti-Corruption Law; In addition, the company has a financial statement audited by Ernst & Young company that is applied annually and the last was published on the date 03.31.2016 and was distributed to the shareholders. The document NPG 25 "Social Responsibility Policy (Ver. 02, 07/07/16) in item 5.3" Integrity and ethics in business "is mentioned the company's commitment to fully respect the anti-corruption law. All documents are published in Portuguese with easily understood by employees.

Agropalma has the Manual of Conduct for Employees September / 2015 that is distributed to all employees at the time of hiring and signs that this is in accordance with the same.

YES

Principle 2: Compliance with applicable laws and regulations. Summary of Principle 2:

Criterion 2.1: There is compliance with all applicable local, national and ratified international laws and regulations


Findings: Comments: Compliance Was verified that Agropalma has a huge number of Licences to work. CRAI/AGROPAR mill: - Environmental Operating License In 7771/2013 issued on 9/17/13 and valid until 09/16/17; - Habite-se CRAI / AGROPAR / AMAPALMA In 01-22032013120125 issued on 1/27/16 and valid until 27/01/17; - Regularity Certificate IBAMA No 2455572 issued on 03/06/16 and valid until 09/03/16; - Grant for water use in 1320/2014 issued 05/07/14 and valid until 06/05/18 for use 1040 m3 / day (There are other grants for this unit); - Business license No 27 issued on 1/14/16 and valid until 12/31/16; Agropalma mill: - Environmental Operating License In 6650/2012 issued on 24/10/12 and valid until 23/10/16;

Agropalma has the information management system called LegNET that manages all laws applicable to its activities. In this system there is also a tool to manage the validity of all their licenses for operation called GOR, which automatically informs the responsible manager on the expiration of licenses related to its manages. As an example, the list of all laws applicable to the environmental sector of the company was presented, totaling: ABNT (272 requirements), Federal (1809 requirements) and Pará State (188 requirements). According to the procedure NPG-020 responsible for LegNET system is Vanja Matos (OEG Coordinator system) that is located in Belem, PA;

YES

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- Grant for water use in 1420/2014 issued on 7/31/14 and valid until 30/07/18 for use 1804 m3 / day; (There are other grants for this unit); - Regularity Certificate IBAMA No 2456788 issued on 03/06/16 and valid until 09/03/16; - Habite-se 01-23032013120125 issued on 1/27/16 and valid until 27/01/17; - Business license No 26 issued on 1/14/16 and valid until 31/12/16; CPA mill: - Environmental Operating License In 6967/2012 issued on 19/10/12 and valid until 18/10/16; - Grant for water use in 1327/2014 issued on 5/12/14 and valid until 11/05/18 for use of 766.4 m3 / day (There are other grants for this unit); - Regularity Certificate IBAMA No 2456788 issued on 03/06/16 and valid until 09/03/16; - Habite-se 02-23032013120125 issued on 1/27/16 and valid until 27/01/17; - Business license 2016 issued on 26/01/16 and valid until 31/12/16; Plant Filial Agropalma 2 (Parapalma): - Environmental Operating License In

9491/2015 issued on 9/11/15 and valid until 09/10/19; - Grant for water use in 1420/2014 issued on 7/31/14 and valid until 07/30/18 for use 1804 m3 / day (There are other grants for this unit); - Regularity Certificate IBAMA No 2456709 issued on 03/06/16 and valid until 09/03/16; - Habite-se 03-072015110125 issued on 09/09/15 and valid until 09/09/16; - Business license No 26 valid until 31/12/16; Sanitary Landfill: - Environmental permit operation in 008/2016 issued on 02/03/16 and valid until 02/25/20; Fuelling station: - Environmental license operation in 9095/2015 issued on 6/26/15 and valid until 25/06/17; - Medical clinic: - Sanitary License issued by ANVISA In 244 valid until 12/31/2016;

Criterion 2.2: The right to use the land can be demonstrated and is not legitimately contested by local communities with demonstrable rights


Findings: Comments: Compliance Documentation file Lands Shopping. Map: Topographic Plant Of Land From Agropalma. This file has a map made by own staff indicates index all areas, numbered and registered, overlap with the boundaries of the Institute of Lands of Pará, ITERPA and on position with the third possession demand situation (conflict with person physical). The document is well-structured and consistent. Sampled findings of audit: - Item 20 - Comarca of Acara. Matricula 1294 CPA with 22547.2332 ha. Checked registration documents, certificate, registration with the approval of the Senate, and Governor Iterpa. Title Final ITERPA Register

The company retains all ownership lands documents and records in registry offices in a file. There is a conflict not with the community but with an individual called Jose Maria da Costa Tabarana. This conflict is related with legal aspects and is in judicial sphere that Agropalma is winning the action. There is no land conflicts with local communities.

YES

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002798,Title 093, April 18, 2000 issued by the county Acara. - Item 46 - (in the legend indicated wrongly as 40). District of Tomé Açu, 3508 Registration AGROPALMA with 3600 ha. Full verified certificate content of 23 December 2015 issued by the County Tomé Acu, Register 5201 where the new area was stipulated as of 3290.5748 ha. - Item 42 - County of Acara, Register 6685, Agropalma with 4356 ha. Final Title Visa Sale of Land. No. 98; October 3, 1962; sale by the State to two, Jose Elias Bicheret Nicholas and Hugo Sergio Bicheret Nicholas that according to the historical registry of Acara, and seen record now belongs to Agropalma on 11 November 2011. Registration in. 6685 open on 18 July 2000 and restored on 11 November 2011. Scripture in the Book 572, Sheet 033, May 22, 2006. The company leased an area with Altino Coelho Miranda farmer. The contract was signed between the landowner and Agropalma of January 13, 2014.

Criterion 2.3: Use of land for oil palm does not diminish the legal or customary rights of other users without their free, prior and informed consent.


Findings: Comments: Compliance Evidence: Map made by Peabiru Institute. Final Report, Diagnostics and development of environmental projects for Agropalma for the implementation of a Social Responsibility Program. Volume 6 Maps.

According to item 2.2.3 and findings in the company, there is no conflict of land with communities, the boundaries are well defined and the relationship with the communities that are stakeholders is good and with cooperation. Verified Financial Economic Sustainability Plan of Long Term, item 6 point C: The Agropalma Group acquires only legalized land with title deed and proven legal dominial chain. People with rights to receive are the legal owners of the land. Any pending or challenge exclude the possibility of acquisition. The Agropalma Group paid the market value, and the owner has the freedom to sell the land. Land trading agreements and results are recorded in the public deed of purchase and land sale, which can be accessed by any interested person. Visits are made by the Agropalma team previously at the area to evaluate if has any kind of problem. All documents generated use portuguese and clearly understood.

Company did a study commissioned to the Institute Peabiru which was made map of surrounding communities prepared by Peabiru with map Agropalma. It was shown on visits to Agropalma

surrounding communities and visiting the Peabiru Institute that there is no interference Agropalma at the interviewed associations, which are managed completely independently.

YES

Principle 3: Commitment to long-term economic and financial viability. Summary of Principle 3:

Criterion 3.1: There is an implemented management plan that aims to achieve long-term economic and financial viability.



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Evidenced Document: Plan for Economic Sustainability and Long-Term Financial is updated and approved by the board of the company. Valid for three years, was published in 2015. Topics: values, mission, integrated management policy, environment, health, safety, social responsibility, statements required by RSPO to comply with legislation, care and union membership, non-discrimination, free party affiliation, prohibits employees discriminate in any kind. The company count on plan of projections until 2046. renewal of culture is evident by 2016:

in the 5th CPA department CPA has 126.68 Organic 287,41ha

registration renewal is growing evidence 2017:

in the department I CRAI replanting 85 253,27 ha reolanting 86 62,70 ha replanting 87 457,27 ha

registration renewal is growing evidence 2018 In the department CRAI CPA 1574.21 In the farm Agropalma CPA 517.48

registration renewal is evident for the year

2019 Agropalma department II 1281.83 ha Agropar replanting 92 203.27 ha

renocavion record is evidence for 2020 AGROPAR replating 95 1239,56 ha..

The company establishes three (3) variables to replant:

• - Bunches measuring more than 11 meters high • - Low performance of 20TN / ha • - High incidence of diseases.

The company count on feasibility document where extraction rates, prices for FFB, international market prices, the trend in the international market, projected volume of production, labor costs are projected

YES

Principle 4: Use of appropriate best practices by growers and mills. Summary of Principle 4:

Criterion 4.1 Operating procedures are appropriately documented and consistently implemented and monitored.


Findings: Comments: Compliance In interview with Katia Delmondes (GIS Analyst) was verified the master list Agropalma containing all existing procedures and operational routines that are valid for

agricultural and industrial area of the complex and in the course of the audit were found then to demonstrate the actions taken, as indicated below. - NPG 16, Version 14, 07/19/2016 - Internal and External Communication Procedure.; - NPG 25, Version 14 02 07/07/2016 - Social Responsibility Guidelines; - NPE-GIND-009, Version 06, 08/06/16 - Traceability of products and raw materials.; - NPG-020, Version 12, 02/03/16 - Access to Legal Requirements and Other Requirements.; - RO-GAGR-002, Version 19, 01/09/15 - Court of CFF.; - RO-RO-GAGR-001, Version 19, 01/09/15 – Plant Cut.; - RO-GAGR-008, Version 03 - Supervision of Operational activities.; - RO-CQEX-019, Version 05, 10/07/14 - Packaging disposal.; - RO-CQEX-002, Version 09, 06/30/15 -

Agropalma has structured its controls so that the policy governing procedures (NPE) to be carried out and for each activity carried out there is a corresponding procedure and an

operational routine (RO) as verified in audits carried out in the agricultural and industrial area Agropalma. Agropalma has a management system called SeSuite that manages the actions taken to improve the quality indicators established for the agricultural and industrial sectors and that are linked to their own procedures. The control of agricultural quality has the function of daily monitor next to their sector the implementation of established procedures. In order to manage this information is generated daily assessment report. The industrial quality control is done on a daily basis in order to monitor the quality indicators related to the CPO and PKO in each extraction plant. As evidence of the operation of SeSuite system

YES

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Analysis of free fatty acids.; - RO-EXT-PAP-011, Version 00, 20/06/16 - Wastewater treatment plant.; - RO-EXT-AGR-012, Version 05, 06/21/16 - Pressing; As evidence was presented the report related to management performed by the agricultural sector generated on 15/07/16 which monitors indicators as, FFB forgotten, FFB not adduced, green FFB, swollen FFB, etc. Beyond this, are other reports generated to evaluate the quality of the delivered fruit, pruning and other agricultural activities. With these indicators is calculated agricultural efficiency that is monitored by the control of agricultural quality and is one of the indicators managed by SeSuite system. For the industrial sector was presented as evidence the report generated on 19/07/16 related to acidity, impurity, moisture, DOB peroxide of CPO and PKO produced in Amapalma mill. In addition, was presented the industry monitoring control related production indicators, referring to 18.07.16, as lost indication, quality, water consumption and effluent generation, etc.

As evidence, the following documents have been verified: - Monthly report related of May / 2016, entrance fruit in each mill (CRAI; AGROPAR; AMAPALMA; PARAPALMA, AGROPALMA); - Weighing guides for agricultural control generated in the balance of the above plans for the day 07/20/16; - Weighing control and apportionment of CFF for family farmers used;

was presented the record made on 10/11/14 to the agricultural sector with completion forecast until 03/11/16 related to indicator FFB loses on mature in the field and is verification process of the results obtained. For the industrial area, was presented the case record No 1090 launched on 27/08/15 in SeSuite regarding a complaint of Refinery about the quality of PKO and CPO sent. Improvement actions are recorded and made to perform in order to improve the oil quality. This occurrence remains open because there is an action to carry out forecast in August. Agropalma has a management system called BioSalq and is coordinated by Solange Gomes. This system manages the input of all FFB received by all Agropalma mill, so that you can view the information of all entries indicating the producer's name, delivery date, quantity, responsible for the delivery and the plot where the fruit was harvested.

Criterion 4.2: Practices maintain soil fertility at, or where possible improve soil fertility to, a level that ensures optimal and sustained yield


Findings: Comments: Compliance The company conducts training on the safe use of agrochemicals Company gives his personal com appropriate PPE for each work to be done Company makes doctors examine every 6 months the people in charge of handling agrochemicals Collection of waste from all areas of industry and presorting of it prior to take the specific area for recycling behaviors located at the base of Agropalma. Proper management of waste from its generation to delivery to the entity responsible for its final use. There is a landfill located on the farm Fazenda Agropalma, which complies with Brazilian law, has operating permit from the Ministry of Municipal Technology and the Environment (Setma). Agropalma list of records of fertilizer Inspecting. Evidence: Application of Mineral Fertilizer • Formula 10-04 // 01-17 • Day 06/16/16 The company count on soil sampling procedures developed by the company annually EMBRAPA. There are records of soil analysis. Example: • Soil analysis • AMAPALMA Sector 1

Agropalma as biomas source use: Empty bunches Palm Kernel Cake Fiber Rind Effluents for Fertigation

. Foliar analysis is performed annually to determine the specific dosage of fertilizer to use. Their recommendations are made based on the results of soil analysis - foliar by engineer Edwin Almeida.

YES

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• date 10702/2016 • in date 2/22/2016 • These analyzes are realized by the company EMBRAPA . Agropalma has standard procedures document specific of AGROPALMA for soil management in accordance with ecological requirements

Criterion 4.3: Practices minimise and control erosion and degradation of soils.


Findings: Comments: Compliance The company count on study realized by SCS (Geographic coordinate systems) where it indicates the soil type present inside plantation. The company realizes annual maintenance in its

ways. The company count on Cemarios documents for the Amazon area of endemism Belem, executivo Museu Paraense summary prepared by Emilio Goeldi , page 14, which indicates that these soils are flat and this information was verified in the field. The company count with a maintenance route plan of 2016 No 001/ 2015 Revised 00 Data 30710/2015

The Agropalma has record of soils type: Sandy soils: Located in preservation

area; Yellow soil with medium clay content; Hydromorphic soil located in riparian

zones;

Was identified of nonexistence of peat soils.

Yes

Criterion 4.4: Practices maintain the quality and availability of surface and ground water.


Findings: Comments: Compliance The Management Plan of Human Resources was developed through 2 internal documents: NPG029 Management Plan of Water Resources (Rev. 1 de 26/04/2016), and NPG033 called Management of the using of Water Resources (Rev. 00, 04/08/2015). The Pará State Government grants Permission No. 2186/2016 valid until January 4, 2020 that allows the water catchment of a polo (coordinates) that has profundity of 18m to the use of 1.5/h to 20h of pump. Total of 30m3/day. It was reviewed the permissions (grants) to human consumption, irrigation, industrial consumption and waste water.

Control of water use through control spreadsheets about de consuption to regulate an eficient use. The pumps have a hydrometer and must comply with the specifications of the grants. May 2016, NPE-GLOG-002 Identification_of_Environment_aspects_Logistical_Management, here these measures are all integrated, related with NPE to control what kind of pollution can appear and then they see what measures can be set. There is a Geografic Information System that contains the full information to construct it according to the information needs. The document that was showed to prove they use this System is the Solicitation of Permission (grant) to catch water to irrigate the plantations on the date September 9, 2008, submitted to Pará State Environment Secretary, to the Director of Water Resources, Sr. Manoel

When they ask for permission to the use of water, its introduced a study of capacity, tolerance, the study is called hydrogeological and its made by a qualified professional. On the levy and environment impacts evaluation spreadsheets are the impacts after the catchment of water and privy interests. The water reservatories are periodically analysed and they issue a document that comproves the cleaning of these reservatories. The water use is only analyzed by the local workers because of the company´s extension.

The care to not contaminate the water bodies have a proceeding called NPE. Which area has a NPE to control what king of pollution can appear and then they see what measures can be set. To the water courses and water bodies (including swamps), there are Areas of Permanent Protecton of water bodies and river banks), to the water bodies constructed by human hands, there are the NPE. A process of waste water treatment is installed and working. It was in evidence that this system works well and the person responsible for it is José Almir and it could be verified the existence of these registers.

YES

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Imbiriba. Process Mention: 2920922008. The map called Company Agropalma S.A. Farms Map, made by Arthur Wieczorek to the Management of Environment Responsibility, scale: 1:100,000 (no date), contains the information of lakes, lagoons, dams, rivers and “igarapés”; so the hydrologic system inside and around Agropalma´s geographic properties. Another information is also present are the limit of cities, ways, planted areas, farms, lots, legal reserves, infrastructure of farms and rural villages. The areas of riparian and buffer zones were liberated of the palm cultivation that existed before (around 5 years ago) and they let the natural vegetation to regenerate itself. The evidence was demonstrated in the images presentment of satellite that could be reviewed in the riparian areas covered by natural vegetation. The operating proceeding of standard protection of rivers and buffer zones are on NPE – GIAG – 002: Identification of Environment Aspects – Agricultural Plantation Management.

There are two SOP to check and supervise the waste water quality (DBO) called: NPG-018: Pollution Sources Management and Environment Quality Management, the other one is RO – GE – MAMB – 004: Liquid Effluents Management and Water Quality. The evidence that the legal parameters are being accomplished is in the Resolution of self-monitoring of CRA – filial – CRAI which its protocol number is: 016/9299. Directed to Mrs. Francisca Lúcia Porpino Teles (Environment Licensing Director) date: March 17, 2006. Criterion 4.5: Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate integrated Pest Management (IPM) techniques


Findings: Comments: Compliance Verified the evidences: • Procedure "Phytosanitary control NPE TGIR 001; • Procedure standard NPG-030 “Integrated management of pests and diseases” indicating the objectives, definitions and responsibilities; • Control of Rhyndchophorus Palmarum with code 001 GIFT RO; • Spreadsheets of plant elimination monitoring with the red ring disease related 2015 / a June 2016; • Spreadsheets of Rhynchophorus Palmarum in 2015 to June 2016; Operational Routine was verified "RO-ALMO-004" dated 04.06.2016. It includes the details ofthe elimination of pollutant materials. An exercise of traceability was carried out with Lenes Ferreira Brito (Agricultural Supervisor) who presented copies of training records and a description of how should be done the triple washing of empty pesticide containers. It was verified through interviews and the document "Courses Of Report By Employee" that Jailson Oliveira Meninea 18496

It was evidenced the existence of an integrated pest management plan (IPM) that contains the strategies for monitoring pests, biological control and general considerations on integrated pest management, with emphasis on: • Knowledge of the life cycle and ecology of the pest and its natural enemies; • Maintain regular cycles of planting surveillance for early detection of outbreaks of each plague and continue to review, especially those concerning the levels of parasitism and predation to plan and implement measures control at the appropriate time; • Establish the economic damage level / 0 incidence and action limits opportunity to development natural enemies to restore the natural balance; • The company is planting species that produce nectar to increase the playback natural enemies for the larvae biological control. A copy of a certificate of training was presented to an employee stating that it received the training course related to security in the application of pesticides / NR-31, issued by the CAT and delivered in February 2015. He was

YES

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(Agricultural Assistant) received the course management and pest control of "Rhynchophorus Palmario" TO-TGIR-001, held in 15/11 / 2012.

also presented the Attendance List training, including the Operational training routine RO-TGIR-001 held in 07/01/2016.

Criterion 4.6: Agrochemicals are used in such a way that does not endanger health or the environment. There is no prophylactic use, and where agrochemicals are used that are categorised as World Health Organisation Type 1A or 1B, or are listed by the Stockholm or Rotterdam Conventions, growers are actively seeking to identify alternatives, and this is documented.


Findings: Comments: Compliance Was observed that: Labor mechanized chemical is identified with the code GIAG RO 011 REVISED 07 DATE 30/03/2016. The application of agrochemicals is machined by means of tractors with capacity of 2000 lt. Access to treated areas is restricted for 24 hours after application with its own danger warning notice with product information applied. Verified Roundup day application on 07.21.2016 with allowed entry after 24 hours. Presented evidence of correct management of herbicide: - Day collection 19/05/2016 to 15/06/2016. Weight collected 180 kg of chemical waste packaging (laboratories ), 40 kg waste ink cans. - Day collection 04/08/2016 and 05/05/2016. Weight 180 kg collected contaminated plastic waste, 80 kg filter waste oils, terrace 2670 kg waste contaminated rags , EPI contaminated waste 420 kg , 80 kg of waste metal brake ,

570 kg waste rubber, waste tires 140 kg. Presented Training attendance list of correct application of Agrotoxico 31 NR 108 Instructor Training Course Gorge Hugo Pereira Santos realized on 05/07/2016. Verified in field the correct use and use of all PPE defined to pulverize of herbicide. Verified that Agropalma does not made aerial pulverizing. The emergency Clinic – AMBULATORIO AGROPALMA – was visited. It is located in the Villa Palma Sector and is very complete. It holds trained staff. Leila Capella Furtado 20854 was interviewed. She is the Coordinator for Doctors. She provided the document Medical Control and Occupational Health Program from the Health and Environment Social Program for Rural Workers (NR-31) 2015. This document includes the Business Policy on Medical and Occupational Health and Social Responsibilities. It also includes health and security management, work and social environment. A medical registry from a worker was examined: This worker received cholinesterase exams in 2012 since back then, the application of herbicide was done manually; currently, this process is mechanic and this exam is no longer performed.

Its evidenced trainings responsible personal for carrying out enforcement activities of agrochemical, SENAR instructors and themselves at different times of the year staff. The company count with warehouse where empty containers are stored. The containers have the triple washing process and are pricked before being collected by the company Environmental Clean city with registration No 1529012016. The company conducts training the person responsible for the application of Glyphosate staff. Collection of waste from all areas of industry and presorting of it prior to take the specific area for recycling behaviors located at the base of Agropalma.

YES

Criterion 4.7: An occupational health and safety plan is documented, effectively communicated and implemented



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Agropalma states in its "Integrated Management Policy" linked to GIS Manual (integrated management system) principles such as respect for health and safety of its employees and service providers. In order to manage this issue has the Plan of Environmental Risk Prevention (PPRA) applies its industrial units and agricultural area. Reference: PPRA for industrial areas (Sep / 15 to Aug / 16 and PPRA for agricultural areas (Sep / 15 to Aug / 16). And according to the interviews and visits to areas of Agropalma was found the use of all PPE and effective monitoring through routine inspections at the company's units by the work safety technician, and the use of PPE is one of the items evaluated. Reference: LTCAT issued by the company CELLI engineering for all Agropalma mills was done in Nov and Dec/14. In this study, was found for the activity of "boiler operation" there is loud noise in the workplace. As a result, is defined in the PPRA that for this activity should use the PPE required: hearing protective shell, jugular with helmet, safety glasses, safety boots, short jacket anti-flame protective easy dark lens

approach glove anti- calls, apron, hose and glove scrapes and safety glasses with filtering lenses. The document NR11-OPERADOR DE TRATOR DE RODAS FORMACAO dated 05-03 to 05-05-15 was taken into consideration, and which included the Crai/Agropar Training from Agropalma. Under course number 346; and carried out in Belém 2016. It includes: “CONVOCACAO DE TREINAMENTO DE NR11”. Describes the organizer, mandatory participants and optional participants. The call for all workers. The document AGROPALMA-MATRIZ GESTAO 2015/2017, ATA DE REUNIAO CIPATR-NR-31. 8a. Ordinary meeting of “Comissão Interna de Prevencao de Acidentes do Trabalho Rural”-CIPATR was taken into consideration. The list is integrated by representatives from employees which are elected and also representatives from the enterprise which are delegated. It was included the content of a meeting where accidents were reported by management level positions, pending items, areas of improvement on both positive and negative aspects. It was verified that there is an attendance sheet where they are registered as participants of said meeting. Verified that Supervisors receive a training to use first aid kits. The attendance sheet to the Training List, Instructora Dra. Leila Capella and nurse LiLian Sequeira, with duration of two hours. This training was carried out in the Medical Ambulatory at 4:00 pm. The attendance sheet was verified. All the accidents are registered in a format required by INSS. Another document available was the COMINICACAO DE ACCIDENTE DE TRABALHO No, CAT 2016.026.448-0/01 where they registry the name of the employer, employee, type of accident and information

In order to establish the risk for each activity is a study called Technical Report of Environmental Labor conditions (LTCAT) which measures the risks exposed in the workplace. With this information is established in the PPRA which measures should be taken to avoid exposure to risk by the employee. It was considered the quotes presented by the companies that participated in the bidding process and the PPEs registries, which detail the unit of each employee including the quantity of inputs given under the Validity Certificate, the delivery and return dates. Each of these certificates belongs to a technical sheet for each one of the materials which can be verified through internet. Any worker can be used by the worker unless they have the PPE certificate. The assurance engineers were the persons that attended the meeting with workers related with healthy and safety action. There are two commissions; rural and industrial and are formed by representatives. The emergency clinic was visited. This clinic is called AMBULATORIO AGROPALMA, and is located in Villa Palma Sector. This is a fully-

equipped clinic and it holds trained staff with different units and services. The guidance to staff in case of accident in the harvest is immediately call the coordinator and demand bus vehicle if it is not urgent. If it is urgent to call a faster car or call the ambulance. In the first aid equipment there stretcher and immobilizing equipment and sterile gloves for wounds parts of manipulation of the body. The registry of accidents established that the standard according to the ILO is under the range of 0-500 and stated as very good.

YES

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from the doctor and is signed by Dra. Leila Furtado. The Lost Time Accident document under number CAT 2016.208.790-0/01 was revised with information from the accident occurred and signed by Dr. Leila Furtado on 06.06.2016 at 14:30 hours. The format for the month of January 2016 was revised and it included the number of accidents, suspended persons and this is the document that feeds the “TASA DE GRAVIDADE (TG)” for 2016.

Criterion 4.8: All staff, workers, smallholders and contractors are appropriately trained


Findings: Comments: Compliance Verified the documents:

- NPG 011. Training Program Development and Personnel Competence. Revision 20, Date: 24.10.2014. Content: Types of training. Staff development stages, Consolidation Survey of Training Needs, Training Documentation, 11 attachments document templates. - Request Form Training and Training Needs Survey. Viewed the model and visa forms filled for example: of 19/07/2016, Technical Electromechanical, Executing Agency, IEPAM, costs, period. For this training were seen dossiers 2 students complete as IEPAM charts, Registration Statement on the course, curriculum, school newsletter. - Training List: - Annual Plan for Training 2016. 89 provided training, with several repetitions throughout the year. Organized by department, planned and budgeted budget implementation period. - Training Application of Pesticides NR 31 Training Course 108, 18 participants, 05-07 / 07/2016 - Training Application of Pesticides NR 31 Training Senar, 36 participants, 02-04 / 03/2016 - Training and Safety Training material that is including the Emergency Action Plan.

NPG 011 establishes the training program that

was developed specifically for the company and has the annual survey of the need for training. Producers partners receive the "Guidance to Palma Producer" and were trained in their content that addresses the RSPO.

YES

Principle 5: Environmental responsibility and conservation of natural resources and biodiversity. Summary of Principle 5:

Criterion 5.1: Aspects of plantation and mill management that have environmental impacts are identified, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continuous improvement


Findings: Comments: Compliance There are several environmental impact assessments:

- Environmental Impact conducted by “Elabore” in 2005 called Advice and Environmental Strategic Support for Agropalma Group. - Complete diagnostic assessment of

Environmental Impact conducted by “Elabore” in 2005 called Advice and Environmental Strategic Support for Agropalma Group mention the

participatory methods used and the communication actions that was made during the construction of this process. There is a procedure called Management of

YES

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biodiversity and environmental plan for Agropalma prepared by Conservation International established in 2008 called Diagnosis of Biodiversity and Creation Proposal for a PRNP Agropalma. The plan incorporates a monitoring protocol that is adaptable and is contained in the instrument called the Environmental Impact Assessment Matrix and it was evident that this is monitored periodically considering the environmental quality indicators measured (industrial emissions, fuel consumption, etc.) by sector environmental management. In addition, it was found that the SIG manages the identified indicators and the implementation of actions to improve them.

Environmental Aspects and Impacts (NPG-013, revised 06/09/2015 (number of revision 12)) which aims to define the aspects of management procedure and environmental impacts related to processes Agropalma Group. It applies to all processes related to the Integrated Management System of Agropalma Group. This procedure meets the requirements of ISO 14001: 2004 with respect to environmental policy and procedures for analysis of environmental aspects and impacts. Reference documents: Manual Integrated Agropalma Management; ISO 14001: 2004; NPG-010 audit; NPG 011 Training Program, Development and Personnel Competence; NPG-088 Improvement Management - Corrective and Preventive Actions; CONAMA Resolution No. 01/86.

Criterion 5.2: The status of rare, threatened or endangered species and high conservation value habitats, if any, that exist in the plantation or that could be affected by plantation or mill management, shall be identified and their conservation taken into account in management plans and operations.


Findings: Comments: Compliance Fauna and Flora Monitoramento of Complexo Agroindustrial Do not Agropalmas, Nov-Dec-2012 and Jan.2013 by Conservação International, 15.01.2014; Biannual Report made by CI that delivers the monitoring species. The hired employees are instructed not to hunt in the internal areas of the company and that, in the event, are caught hunting the appropriate administrative measures are directed. And, in addition, campaigns are made with the communities on the frontier to aware the importance of maintain the local fauna.

Since 2008 Agropalma has a tool for collaboration with Conservation International (CI), an international organization that produced the study that year called Diagnostico de Biodiversidade e Proposta de Criacao de uma RPPN para a Agropalma; from those jobs where species of flora and fauna (mammals and birds) rare, threatened or endangered species were identified, a scheme of periodic monitoring was established to assess the status of these species identified and their status depending on the conservation conditions of the areas where they are located and productive activities of the company. CI delivers periodic reports of the monitoring species On 18 January 2015 a new contract Private Instrument of Parceria e Outras Avencas not only to include monitoring of species but also expand the collaboration object to socio-productive sphere was signed. The instrument aims: do desenvolvimento do projeto de conservacao, producao e inclusao social da palma de dende como vetor de desenvolvimento sustentavel no centro de Endemismo em Belém.

YES

Criterion 5.3: Waste is reduced, recycled, re-used and disposed of in an environmentally and socially responsible manner.


Findings: Comments: Compliance There is a solid waste management plan (SWMP 30) which is in accordance with Law 12,305 / 2010 In this plan are identified all the solid waste generated in complex Agropalma, the sources, allocation and disposal. Verified RO-EXT-PAP-011 procedure, Ver. 00 of 06/20/16, effluent treatment plant and the sheet (7-SB15-172 BIB Oper July / 2016) which contains information quality of the effluent generated and it could be seen that pH is an important indicator of quality of the system is in the desired range of 7.0. There is an exclusive warehouse for receiving empty containers of agrochemicals that is closed and controlled by the warehouse supervisor. The procedure provides that, in order to receive new products, they must

In addition, it was found that other waste generated in industries, homes and agricultural areas are identified and monitored by the environmental department. Organic waste is burned part for power generation in industrial plants and part intended as an organic fertilizer for agricultural areas. Chemical waste (reagents laboratory, oils, pesticides), metals, plastics, glass, paper are segregated according to the degree of dangerousness and intended for sanitary land of the company or else for third company, responsible for making the collection and proper disposal. For Parapalma and Agropalma mills was built in 2015 a sewage treatment plant that receives all the effluent generated in both extractors and under an anaerobic treatment system controlled the effluent with better chemical and biological

YES

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provide empty containers previously. These containers are delivered to an institution called ACAP. AGROPALMA holds a work permit by 2021 according to the number 9822/2016, Item 4. Reference Document: Law 12.30572010. Additionally, was visited the quality laboratories of CPA, Amapalma / Crai / Agropar and Parapalma / Agropalma and found that the reagent bottles are properly stored, protected and intended for disposal by company also licensed to receive.

characteristics it is intended for fertigation at Agropalma farms.

Criterion 5.4: Efficiency of energy use and use of renewable energy is maximised.


Findings: Comments: Compliance To evidence management that is made of diesel

consumption in its activities, he was presented the spreadsheet to calculate the greenhouse gas emissions for agricultural activities (Spreadsheet 3_Field_Fuel_Use_2015) which informs 3,269,021.74 L of diesel consumption in group farms for a total of 671,096.68 tons of CFF produced, with a ratio of 4,871 l / ton of CFF. For industrial activity is reported in spreadsheet "planilha_4_Mill_Sheet_2015" total consumption of 907,592.58 liters of diesel, which is a ratio of 1,352 U / ton processed CFF.

Company has the internal management

programs called Sifrota and Siman for management of fossil fuel consumption in vehicles / tractors and generators industries respectively for all Agropalma group. These programs monitor fuel consumption and schedule the dates of the maintenance checks, as well as in case of high fuel consumption indicate the need for corrective review. These practices are very important to avoid increased fuel consumption and consequent generation of greenhouse gases. Currently, the company does not have a plan of fuel consumption targets at the expense of consumption expansion phase due to the increase of agricultural mechanization for harvesting and also the irrigation of effluent in the areas of production, which did not exist before. Regarding the generation of renewable energy the company documents the long hours of activity of power generation at each plant (except CPA that does not have), as well as the generation of biomass generated that is used to generate heat and power, as well as for allocation to agricultural land as fertilizer.

YES

Criterion 5.5: Use of fire for waste disposal and for preparing land for replanting is avoided except in specific situations, as identified in the ASEAN guidelines or other regional best practice


Findings: Comments: Compliance Operational routine Document RO GIA6 -0008, elabored by Denier Marques/Emmanuel Campos, approbed by Raquel Cristina do Amaral, Leonardo Olivera

No use of fire is allowed and this is also applicable to the associated growers, who are simply cultivating land for the replanting with oil palm.

YES

Criterion 5.6: Plans to reduce pollution and emissions, including greenhouse gases, are developed, implemented and monitored.


Findings: Comments: Compliance Was verified the document titled as "Pollution Sources Management And Monitoring Of Environmental Quality" (NPG-018 Revision 21 of 16/07/2015) which contains the Emissions Monitoring Program in Atmospheric units of Bethlehem and Thailand and meets the parameters that the law requires. This report is made every six months. It indicates the methodology of collection and laboratory analysis accredited for the activity. It was verified the document RO-GE-MAMB-005 (Air Pollutants Management and Air Quality, Revision 09 date 07/20/2015). Details the collection sites, the emission sources for both

Is counted also with a OPERATING ROUTINE SOURCES OF MONITORING AND EMISSIONS AND AIR QUALITY - CRA AND AFFILIATES (RO-GE-MAMB-005, Revision 09 of 07/20/2015). It contains the care of environmental aspects of the activity.

YES

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extraction plants, such as for vehicle fleet Agropalma, and atmospheric emissions treatment system. Was presented the record called ANALYTICAL TEST BULLETIN No. 1669 and 1670 the company responsible for the measurements identified as COMMERCIAL PROPOSAL MAGMA 0412/13. It was revised the report containing the methodologies employed, total suspended particulates, respirable particulate matter, sulfur dioxide, carbon monoxide, the samples were analyzed in February 2016.

Principle 6: Responsible consideration of employees and of individuals and communities affected by growers and mills. Summary of Principle 6:

Criterion 6.1: Aspects of plantation and mill management that have social impacts are identified in a participatory way, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continuous improvement


Findings: Comments: Compliance Diagnosis and Development of Socio-Environmental Projects for Agropalma for the implementation of a Social Responsibility Program. 7 volumes. 1- Presentation 2- Staff 3 Programs 4 Surrounding Areas 5. Proposals 6 Maps 7 Attachments This diagnosis had a part of evaluation for the RSPO criteria in Volume 7 Anexos- Monitoring Report Pre-Agropalma RSPO audit which lists a number of opportunities for improvement. Evidence of meetings held for this survey: 1. List of presence at field research -02/11/07 (Annex 7). 2- Report Year I - plentiful photographic record 2010 in the Annex, with people in work generated documents, lists, calendars, spreadsheets, calendars developed together. Social Project Plan of 2011. Social Project Plan of January 2016. This plan is being updated as Plan Social Projects which appears in the Schedule, developed by Agropalma consultation with stakeholders in the surroundings as unions. This is the schedule of social and environmental

projects developed by Peabiru Institute, which was being updated by the company over time. Health Plan costing R $ 3.8 million to the company. Newsletter Interaction January 2015 announcing the start of the health plan and availability. Regarding the plan of positions and salaries the significant improvement was to organize the company with new distribution and wages to

Evaluations were made by Peabiru Institute conducted the evaluation from 2007 to 2012. It was a great diagnosis with proposed action. The next year the implementation of the proposals, several projects were executed and therefore the long period. Evidence that impact assessments were made in a participatory manner is the abundant photographic record mentioned in item 6.1.1 at the Peabiru reports. Frequently, the company meets with employees and representatives to evaluate the improvements / corrections needed. The actions are performed as agreements. Examples of these improvements in the last year are: Health care, reforms in medical and refectory, food vouchers, monitoring and management of child labor and informal, new report family farm payments. Agropalma has a department dedicated exclusively to provide technical assistance to partner producers and beyond the service monitors the social and environmental indicators, with verification of activity costs, payment of labor charges, palm cultivation satisfaction and other issues that may arise. In all producers audited, has shown a very positive impact on a significant improvement in quality of life of the people involved, as well as the local economy.

YES

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search for better service. Through technical assistance reports and record books of visits (black book) routinely performed every producer can show the impacts caused.

6.2 There are open and transparent methods for communication and consultation between growers and/or mills, local communities and other affected or interested parties


Findings: Comments: Compliance 1-Bulletin integration, July / 16. 2 - Poster Hello Agropalma with all modes of communication. 3-Use more intense this year with a two communications per week. It has been found communications occurrence of 9 months. 4- NPG 16- date: 19.07.2016, Revision 14. 5 - Bulletin Boards Update 5-Report. Every week are updated if any new news. 6- Follow Up of Stakeholders Records. 7 - Standardized Document Internal Communications: Internal Communiqué no. 98/16, 07/15/2016. 8 - Open Doors Program, 04/2016 of 06/23/2016. Visit the NEPAM- Education Center College Amazon. It has been found Official of stakeholders, and updated with contacts, function and address.

Through the program ALO AGROPALMA the employee can call the extension 8213 for complaints and make suggestions for improvements and the external public uses forms. They are printed and are in the entrances or even can call by telephone 08007090706. There is also an email for complaints and grievances, [email protected]. Other Activities: give support to other areas for fundraising campaigns to communities and schools. Preparation of photo galleries for event registration, parties are organized Thursday, Thursday Musical, June Festival, carnival party, end of year prom. The parties may have the participation of relatives. Help publicize sporting events, such as bike ride, nature trails on Sunday, labor party, football, fitness classes at the gym. It was also noted as described in 6.2.1 that Follow Up of the Stakeholder Record is updated and shows communications confirmation and decisions as well as the dates of complaints, withdrawal period and date of resolution of problems and a short description of resolutions when possible, ie not covered by secrecy.

As the communication so the decision is communicated by the same vehicle. For anonymous communications response is put on display on bulletin boards.

YES

Criterion 6.3: There is a mutually agreed and documented system for dealing with complaints and grievances, which is implemented and accepted by all parties


Findings: Comments: Compliance Receiving procedure, treatment, response, negotiation, and Solving Complaints and Claims. February 03, 2011. Signed by the main stakeholders. Document analyzed: Follow Up of Records Stakeholders, with several records for 2016 issues addressed and resolved claims.

There is a procedure for complaints and grievances drawn up jointly with interested parties. Supplemented by procedures "Demand Stakeholders" which guarantees anonymity, if requested.

YES

Criterion 6.4: Any negotiations concerning compensation for loss of legal or customary rights are dealt with through a documented system that enables indigenous peoples, local communities and other stake holders to express their views through their own representative institutions


Findings: Comments: Compliance Plan for Economic Sustainability Financial Long Term, item 6 point C: The Agropalma Group acquires only legalized land with title deed and proven legal dominial chain. People with rights to receive are the legal owners of the land. Any pending or challenge exclude the possibility of acquisition. The Agropalma Group paid the market value, and the owner sells the land if he wants.

Land trading agreements and results are recorded in the public deed of purchase and sale of land, which can be accessed by any interested person. Visits are made, area measurements, environmental and social studies, the area deforestation history and if there is contested by other parties. Without restrictions is meeting with owners and concluded the purchase of the property.

YES


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Criterion 6.5: Pay and conditions for employees and for employees of contractors always meet at least legal or industry minimum standards and are sufficient to provide decent living wages.


Findings: Comments: Compliance All employees interviewed had confirmed the payment according with the law and previous agreement made with the company and considering their work contract. Viewed: For Agropalma agricultural part in Tailândia. Collective Bargaining Agreement 2016/2017 between the Rural Workers Union of Tailândia and the Federation of Workers in the State of Pará Agriculture and Agropalma S / A 18.07.2016. Company negotiates with the union directly. MR044001 / 2016. Viewed: for Agropalma Industrias: Collective Labor Agreement 2016/2017 between Union of Food Industry Workers in the State of Pará and T EDF AP and Industrias Union of Oil and Pará State Food Oils with the Workers in Food Industry oils and olive oils. 04/01/2016. According to interviews and sites visited, the accommodations placed at the disposal within the project areas meet the conditions of cleanliness, hygiene, structure and the company works to meet NR 31 which regulates all the infrastructure to employees in Brazilian territory. Water supply comes from pits made by the company and whose water quality is monitored according to the law every six months. Analyses Department views 4:05 The views were and are in order for potability. Reviews: Department .4: Lodge AUIAÇU 01 Well, look on. 000875; 000812. Department. 5, analysis on. CASAGRANDE 000,890. According to the company, and reported by the syndicated workers of Vila dos Palmares by Mr. Manoel Carneiro da Silva Evangelista food brought by employees for lunch is subsidized by

50% when the option is not to eat the food company. This is a recent achievement. The meals is made by leading and professional company. The food in the canteen is placed at the disposal with quality and quantity not controlled.

The paychecks are issued monthly on the listing of all discounts. Employees receive and are reported in the local language. If has questions may use the higher, the union, the media available and described. The documents are available in the HR department. Standardized contracts are signed by employees, with support orientation of the union and the company HR. Verified that all employees interviewed had signed documents. Permanent orientation is provided by the union and HR. legal requirement: DEL 5452, Art 442 and 443. The Agropalma Group provides adequate infrastructure and educational opportunities for its employees. Infrastructure of villages, health services, leisure options (clubs and social programs) and educational development programs (school, adult education). For Agropalma and Parapalma mills it was found that is provided mineral water in gallons for employees that is controlled by the company to ensure they are within the validity and protected against any external contamination. Bathrooms and frequency locations of officials promoted by the company are clean, adequate, organized and monitored.

YES

Criterion 6.6: The employer respects the right of all personnel to form and join trade unions of their choice and to bargain collectively. Where the right to freedom of association and collective bargaining are restricted under law, the employer facilitates parallel means of independent and free association and bargaining for all such personnel


Findings: Comments: Compliance Statement recorded in the Plan for Economic Sustainability and Long-Term Financial reporting the free recognition for association with local unions. In an interview with the Syndicated Workers of Vila dos Palmares it was found that there is no restriction by the company to its employees to join the syndicated or that have access to the company's structure. Verified register “Ata” of the meeting with the Union on 20.04.2016. With determination of level of payment to agricultural workers, salary,

The union meetings are recorded in minutes and the results of the negotiations are recorded in the union agreements.

YES

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attendance premium, discount power, reset salary level. Signatories: Union: Manuel Evangelista and Agropalma: Fabio Jose Sousa Gonçalves Collective Bargaining Agreement 2016/2016 between the Rural Workers Union of Tailândia and the Federation of Workers in the State of Pará Agriculture and Agropalma S / A 18.07.2016. Company negotiates with the union directly. MR044001 / 2016. Collective Labor Agreement 2016/2017 between: Union of Food Industry Workers in the State of Pará and T EDF AP and Industrias Union of Oil and Pará State Food Oils with Workers in Industry of Food oils and olive oils. 04/01/2016.

Criterion 6.7: Children are not employed or exploited. Work by children is acceptable on family farms, under adult supervision, and when not interfering with education programmes. Children are not exposed to hazardous working conditions.


Findings: Comments: Compliance Manual of Conduct, signed by each employee in item 7:34 mentions that work for children under 18 years may occur provided it is protected by specific contracts and or apprentices. Verified manual signed Francisco Mesquita da Silva Neto, July 31, 2006. Social Responsibility guidelines NPG-25 07.07.2016 item 5.2.1 sealing work under 16 or exposing workers between 16 and 18 to unhealthy situations, unsafe and dangerous including suppliers. Finding through interviews and visits at the premises of the lack of employees with no age compatible activity performed and non-compliance with legal requirements.

The Agropalma Group hires only 18 years as employees. Young people between ages 14 and 24 are hired as young apprentices in order to meet a legal requirement.

YES

Criterion 6.8: Any form of discrimination based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation, or age, is prohibited.


Findings: Comments: Compliance In all interviews in agricultural and industrial areas with men and women questions were asked regarding discrimination, abuse, harassment of all kinds and there was no report about any discriminatory practices. The Social Responsibility Guidelines determine in item 5.2.4 that "the selection process, hiring and promotion of employees are based on skills, abilities, health conditions and qualities required for available jobs."

In addition, the communication channel "Alo Agropalma" or through complaint records were not identified any claims in this regard.

YES

Criterion 6.9: A policy to prevent sexual harassment and all other forms of violence against women and to protect their reproductive rights is developed and applied.


Findings: Comments: Compliance In all interviews in agricultural and industrial areas with men and women questions were asked regarding discrimination, abuse, harassment of all kinds and there was no report about any discriminatory practices. Company has a CIRCULAR ADMINISTRATIVE DIEC No. 16_002 of 02/15/2016. Instructing about AUDIT COMMITTEE AND CONDUCT involving failure issues, equity and also relationship, misconduct, "... verbal and

The Manual of Conduct item 7.33 treat about harassment, moral and other types. The job layoff law for maternity leave for both men and for women and participation as "Citizen Company" warrants dismissal of 6 months and not 4 months to mothers with maternity leave.

YES

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physical abuse, improper points records and repeat occurrences." Through interviews with women working in the agricultural and industrial areas Agropalma was found that the rights to maternity leave are aware of them and that the company complies with the grant of six months license. Receiving procedure, treatment, response, negotiation, and Solving Complaints and Claims. February 03, 2011. Signed by the main stakeholders.

Criterion 6.10: Growers and mills deal fairly and transparently with smallholders and other local businesses.


Findings: Comments: Compliance All audited farmers reported: - Having knowledge about the amounts paid, reported knowing the dynamics of payment, they are informed about the international value set by Rotterdam and that the price paid is reported in routine visits by technicians Agropalma. - That they received all the necessary explanations, are satisfied with the conditions stated in the contract and understand that the business relationship is done transparently. - That payments are made on the dates established between them and Agropalma and there is no late registration.

Agropalma monthly releases for each producer the prices charged for the purchase of FFB, as provided in the contract signed, and for each delivery the producer is informed about the total received and is informed about the value to be received at the end of the month. Through the technical sector dedicated to monitoring partners farmers they are informed in advance about the conditions of the contract, payment method and price adopted by Agropalma to buy fruit and other details surrounding the activity.

YES

Criterion 6.11: Growers and mills contribute to local sustainable development wherever appropriate.


Findings: Comments: Compliance School Agropalma constantly involves parental involvement. School subsidized by Agropalma for the children of employees with complete structure to the second degree with computer room, library, laboratory, well-equipped rooms with TVs to display movies and technical presentations. Peabiru- reports done in a participatory manner. Environmental Monitoring Report to continue for several years. Diagnostic Survey Ecosocial. Done in a participatory manner as part of the Fair Trade

Ecosocial program. Agropalma has a dedicated sector only to provide technical assistance to partner farmers for guidance on appropriate practices without charging for this service to producers, and is offered the possibility of acquiring inputs for use in their activities and discount payments to be received with accessible values.

EcoSocial Survey diagnostic and Peabiru Reports indicate that education is a priority for the region. Agropalma school and adult education for sustainable development. They are concrete steps of investment in education. Still, the company provides the space and infrastructure to a municipal school operating in CPA farm.

YES

Criterion 6.12: No forms of forced or trafficked labour are used.


Findings: Comments: Compliance All employees Agropalma interviewed throughout the audit in agricultural and industrial areas not mentioned and complained of any such process. There is no practice of replacing contracts in Agropalma. This practice is not allowed by law and found through interviews to all company employees and unions the absence of such a practice.

It has been found that there is no practice of hiring temporary or migrant workers by the company. All are registered according law and are treated the same way.

YES

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Criterion 6.13: Growers and millers respect human rights.


Findings: Comments: Compliance NPG 25 "Guidelines on Social Responsibility (Ver. 02, 7/7/16). In item 5.2 "Respect for human rights, workers and communities affected by the business" the company informs that develops its activities in accordance with the Universal Declaration of Human Rights (UN, 1948) and the ILO Declaration on Fundamental Principles and Rights at Work (ILO, 1998). This update was widely publicized in all sectors of Agropalma complex through the publication of the Bulletin interaction No 159, published in July / 2016 which reports on the guidelines and company policy compliance.

During interviews with employees of the agricultural and industrial areas, it showed that Agropalma implements its policy related to human rights, offering decent working conditions, absence of discriminatory practices, absence of use child and slave labor, and payment of all labor rights to their employees. In addition, to the outsourced employees was noted in interview that subcontractors provide adequate conditions for work with transportation, food, water, etc. and Agropalma offers its infrastructure for their use, as well as supervise these companies to ensure that employees receive all their labor rights provided by law (salary above the minimum required by law, 13, holiday, INSS, FGTS and other additional depending on the activity performed.

YES

Principle 7: Responsible development of new plantings. Summary of the findings for principle 7:

Criterion 7.1: A comprehensive and participatory social and environmental impact assessment is undertaken prior to establishing new plantings or operations, or expanding existing ones, and the results incorporated into planning, management and operations



Was prepared executive assessment report environmental impacts (AISA), high conservation values (AVC), stock of carbon and balance emissions of greenhouse gases (GHG) by OrbisExceller company in December / 2015 by leading advisor Arthur Wieczorek (No HCVRN-ALS14003AW) for new plantations by the producers listed below, totaling 2,136 there suitable for palm planting : - Antônia Maria Nogueira; - Cérgio Eikawa; - José Wanderley Melo *; - Maria Rosângela;

- Miklo Nagal; - Márcio Hiramizu; - Mitsuharu Onuki; - Shigeru Hiramizu; Obs .: The producer José Wanderley Melo was excluded by Agropalma RSPO certified producers list. In items 5.1.7, 5.1.8 and 5.1.9 respectively is informed that 8 rural workers and leaders of communities located near these properties were interviewed, which are: Vila Manuel Geraldo, Fork, Nazareth / Aui-Acu, Vila Israel and Black Village. An example, is cited by communities affected the concern about the negative effect of the pollution impact, for example, on the water quality of the rivers and to the population of local fishes. As a mitigation measure, is indicated the need to implement actions to control erosion, adequate use of herbicides and fertilizers, and protection to APP's. In item 8.4 "Management and Monitoring High Conservation Values for" is presented the Table 8.4 that establishes for each stroke identified, the threats and actions to be taken to mitigate them, as well as a plan for monitoring.

It has been found in the study assessment of environmental impacts (AISA), high conservation values (AVC), stock of carbon and balance emissions of greenhouse gases (GHG) by OrbisExceller company in December / 2015, the existence of HVC1 and HVC4 in currently related farmers. For farmer José Wanderley Melo it was also confirmed the existence of AV3, but the same does not appear more in the RSPO certification. The possible negative impacts from the

activity are mentioned in item 8.3 "Results of consultations with key people" where reports for each stakeholder interviewed the potential negative impact on the activity and following reports what measures should be taken to mitigate them.

YES

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Criterion 7.2: Soil surveys and topographic information are used for site planning in the establishment of new plantings, and the results are incorporated into plans and operations



Was detected the existence, in prevalence, of the soil type Latossolo Amarelo, of Gleisolo (the river bank, associated with wetlands) and espodosolo (sandy soils) and the indication of the existing river system. There is also the soil map shown in Figure 6.6, with appropriate scale presentation of identified types of soils.

In the evaluation study of environmental impacts (AISA), high conservation values (AVC), stock of carbon and balance emissions of greenhouse gases (GHG) by OrbisExceller company in December / 2015 is shown in item 6.6 "Environmental Services" the evaluation of the types of soils in areas of interest for planting. Is informed on the study that will not have drainage and irrigation for planting new areas of palm by partner producers.

YES

Criterion 7.3: New plantings since November 2005 have not replaced primary forest or any area containing one or more high Conservation Values



It has been found through evaluation study of the analysis of environmental impacts (AISA), high conservation values (AVC), stock of carbon and balance emissions of greenhouse gases (GHG) by OrbisExceller company in December / 2015 in item 7.2 "Land Cover Change between 2006 -2015 in the areas of new developments." Table 7.2 shows what had on this producer in 2006 and 2015 Figure 7.7 - cover change map between 2006 and 2015 for this producer. As observation is reported in the study that was not made satellite imagery analysis for this producer due to the bad quality of the image. In this study it is indicated for the producer Cergio Eikawa is reported that there are 47.30 ha of HCV1, 9.65 ha of HCV4, and in areas of interest for palm plantation is not mentioned the existence of HCV. As evidence were presented: - Report "Peer Review Report" prepared by Daniel Arancibia issued on 12.20.15, and 9 criteria evaluated on this study for new planting all were approved, receiving a good grade or regular; - E-mail sent by Hanna Scrase (HCV ALS Quality Manager) to the leading adviser Arthur Wieczorek on 1/15/16 stating that the study of NPP is satisfactory; - Checked the website www.hcvnetwork.org/als/public-summaries that the study for new planting is satisfactory;

Agropalma has its track record of producers which consists record of information observed in the visit. Verification to the agricultural technician notebook Eledilson Carvalho Barros, technical assistance team (Agricultural Management III) was evidenced that on 02/05/16 he made a visit to the producer Cergio Eikawa from 07:00 pm to 09:30 hs and found that the new planting was carried out from the day 01/02/16 and finished 02/12/16;

Agropalma has plantation areas from 2005 to 2010 and for these areas in previous RSPO audits this issue was previously evaluated by the responsible auditors. After 2014, it was made new planting by producer Cergio Eikawa located in Tomé-Açu in the current year (02.01.2016) of 87 ha of palm. In item 8.4 "Management and Monitoring High Conservation Values for" is presented Table 8.4 that establishes for each HCV identified threats and actions to be taken to mitigate them.

YES

Criterion 7.4: Extensive plantings on steep terrain, and/or on marginal and fragile soils, are avoided.



Was presented the map performed by SCS (geographical coordinate system) using the software Datum SAD 69.

There is no record of types of fragile soil present in the areas of production of the company: • Sandy soils are situated in the protected

YES

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Verification Date 25/08/08 environmental liability management Arthur Wieczorek;

area, as well as hydromorphic soils. • Soils are generally latosol yellow with low clay content; Noted the absence of palm planting in areas with fragile soils.

Criterion 7.5: No new plantings are established on local peoples’ land without their free, prior and informed consent, dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their own representative institutions



In the evaluation study of environmental impacts (AISA), high conservation values (AVC), stock of

carbon and balance emissions of greenhouse gases (GHG) by OrbisExceller company in December / 2015 is not registered land tenure conflict. The properties of interest for new plantations are private and legal ownership recognized by the government.

----- YES

7.6 Local people are compensated for any agreed land acquisitions and relinquishment of rights, subject to their free, prior and informed consent and negotiated agreements.



The areas where the producers will be new plantations are private and not identified customary uses or rights to use the areas for other people or local community as ESIA study for new plantings in each property.

The areas where the producers will be made new plantations are private and is verified by the technical support industry to producers if the properties are of legal ownership, properly documented and if there is a history of ownership of the same conflict. In addition, it was found the land situation through the ESIA study for new plantings in each property.

YES

Criterion 7.7: Use of fire in the preparation of new plantings is avoided other than in specific situations as identified in the ASEAN guidelines or other regional best practices



In addition, the audits carried out in the visited partner producers has not found the use of fire as a practical preparation for planting. Verification to the agricultural technician notebook Eledilson Carvalho Barros, technical assistance team (Agricultural Management III) was evidenced that on 02/05/16 he made a visit to the producer Cergio Eikawa from 07:00 pm to 09:30 hs and found that the new planting held between 01/02/16 and 02/12/16 there was no record of evidence of use of fire to prepare the area.

The "Guidance to Palma Producer" published in 2014 sets on p. 12, item 7 "Responsible development of new plantings" that should not be made use of fire to prepare the area.

YES

Criterion 7.8: New plantation developments are designed to minimise net greenhouse gas emissions.



For Cergio Eikawa producer was estimated in Table 10.1 a total 1924 tCO2 to be generated on the basis of Land Cover Change by planting 105 ha of palm. In item 10.2 "balance of greenhouse gas emissions" is made an estimate of the total emission of greenhouse gases (GHGs), considering for a productive 25-year cycle of palm cultivation all farming practices to be carried out and energy consumption. Table 10.2 "GHG emissions (CO2e) for a production cycle of 25 years, considering agricultural and industrial data of Agropalma (Ref. 2014)" is

calculated the estimative of emissions for each activity performed, getting to the calculation 127.85 tCO2 / ha kidnapped, considering that planting will be done in pasture land.

In the evaluation study of environmental impacts (EISA), high conservation values (AVC), stock of carbon and balance emissions of greenhouse gases (GHG) by OrbisExceller company in December / 2015 is defined in item 10 "carbon stock and balance of greenhouse gases " what is the total carbon gas will be generated with the palm plantations in the areas of partner producers. It is established in item 2.5 "Adequacy of the areas of new developments to RSPO criteria" that one of the exclusion criteria for defining the areas to be planted is that has

high carbon stock. As consideration to make, Agropalma has a Strategic Plan published on its website the

YES

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And, considering the total of 8 farmers indicated is estimated to emission a total of 7.390 tCO2 in the end of the cycle production of 25 years.

plan to collect the emission of greenhouse gases generated in their POME plant.

Principle 8: Commitment to continual improvement in key areas of activity. Summary of the findings for principle 8:

Criterion 8.1: Growers and millers regularly monitor and review their activities and develop and implement action plans that allow demonstrable continual improvement in key operations

Summary of the findings for 8.1: Findings: Comments: Compliance

Verified Action Plan Continuous Improvement 2015.

Verified Continuous Improvement Action Plan 2016. Basically the items are repeated with the registered evolution year by year which facilitates the monitoring and effectiveness of the measures implemented. In all significant items reported there were improvements and consist in reducing the use of pesticides, the environmental impacts, waste generation, greenhouse gas emissions related to social impacts (accidents indicators).

The company carries out each year a new plan of continuous improvement.

YES

RSPO Supply Chain Certification

Supply Chain Module D – Identity Preserved Findings: Comments: Compliance

Description As evidence, the following documents have been verified: - Monthly fruit entrance report for May / 2016

in each AGROPALMA mill; In the document "Traceability of products and raw materials" (NPE-GIND-009, See 07 07.22.16) is established: Item 5.6 - The need of raw materials segregation, processing, storage and sale of products certified RSPO and uncertified. Reports that only for Agropalma and Parapalma mills may receive FFB not certified. For Parapalma mill the chosen module E Module - Balance Mass and Agropalma is IP, and in the case of fruit receipt not certified it will be classified as "conventional" and stored in a separate tank.

It was found that Agropalma receives only fruit from integrated farmers and from own areas certified RSPO and there was no fruit buying uncertified RSPO.

Agropalma has a management system called BioSalq and is coordinated by Solange Gomes. This system manages the input of all the fruit for all industrial plants complex Agropalma, so that is possible to visualize the information of all entries indicating the producer's name, delivery date, quantity, responsible for the delivery and the plot where the fruit was harvested. In addition, for each FFB deliveried is generated in each weighbridge of the mills a ticket with all source information of the fruit production and the system prevents there origin of fruit delivery not known and previously approved by the company management.

YES

Documented Procedures In the document "Traceability of products and raw materials" (. NPE-GIND-009, See 07 07.22.16) is established the procedures related to standard SCC RSPO as: - Item 5.1- Alessandra Dias Bortolanza responsible for the management of traceability; - Item 5.2 - Need to inform the IBD in case of increase up to 20% of the estimated production; - Item 5.3 - Each industry should record and

Reports that only for Agropalma and Parapalma mills may receive FFB not certified. For Agropalma mill the chosen module is the IP, and in the case of fruit receipt not certified it will be classified as "conventional" and stored in a separate tank. Informs that as a way to manage the balance between FFB RSPO and not certified will be used traceability sheet production process produced oils (Sigind);

YES

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keep the monthly balance of all amounts received from CFF RSPO certified and not certified; - Item 5.4 - Set the downgrading respecting sequence IP > SG> MB; - Item 5.6 - In all sales NF's must contain the data referred to in 5.6.1 of SCC standard, including the number of RSPO certified company; - Item 5.6 - Mentions the need for segregation of raw materials, processing, storage and sale of products certified RSPO and uncertified. - Item 5.6 - Reports that the generated documents related to product traceability IP RSPO and MB should be maintained for at least 5 years; - Item 8 - It is established the need to conduct training once a year for people involved in the event of updating this procedure or new employee hiring; Verified: - Monthly report for May / 2016 fruit entrance in all mills; Regarding the treatment of non-internal and external compliance and customer complaint the company has the NPG-031 document

(29/02/16, see 02) - Control and Treatment of Non-Conformance of Quality and Food Safety, which involves Refinery production process. The management review is defined NPG Procedure 001 (1.6.16, see. 20) Critical Analyze of SIG to evaluate the effectiveness of the integrated management system to meet the policy and purpose of the GIS.

Purchasing and goods in As evidence, the following documents have been verified: - Monthly fruit entrance report for May / 2016 in each AGROPALMA mill; In the document "Traceability of products and raw materials" (NPE-GIND-009, See 07 07.22.16) is established: Item 5.6 - The need of raw materials segregation, processing, storage and sale of products certified RSPO and uncertified. Reports that only for Agropalma and Parapalma mills may receiveFFB not certified. For Parapalma mill the chosen module C Module - Balance Mass and Agropalma is IP, and in the case of fruit receipt not certified it will be classified as "conventional" and stored in a separate tank.

It was found that Agropalma receives only fruit from integrated farmers and from own areas certified RSPO and there was no fruit buying uncertified RSPO. Agropalma has a management system called BioSalq and is coordinated by Solange Gomes. This system manages the input of all the fruit for all industrial plants complex Agropalma, so that is possible to visualize the information of all entries indicating the producer's name, delivery date, quantity, responsible for the delivery and the plot where the fruit was harvested. In addition, for each FFB deliveried is generated in each weighbridge of the mills a ticket with all source information of the fruit production and the system prevents there origin of fruit delivery not known and previously approved by the company management.

YES

Record keeping - Monthly report for May / 2016 fruit entrance

in all mills, that include the production of CPO and PKO for each mill;

In the document "Traceability of products and

raw materials" (. NPE-GIND-009, See 07 07.22.16) is established: - Item 5.3 - Each industry should record and keep the monthly balance of all amounts received from CFF RSPO certified and not certified;

YES

Processing Until now 100% of the fruit received by the mills were certified. From this audit, there will

In the document "Traceability of products and raw materials" (NPE-GIND-009, See 07

YES

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be Parapalma mill certified as MB and receive fruit not certified after Agropalma decided to took of two integrated farm that was certified.

07.22.16) is established: Item 5.6 - The need of raw materials segregation, processing, storage and sale of products certified RSPO and uncertified. Reports that only for Agropalma and Parapalma mills may receive FFB not certified. For Parapalma mill the chosen module C Module - Balance Mass and Agropalma is IP, and in the case of fruit receipt not certified it will be classified as "conventional" and stored in a separate tank.

Claims & Trademark use -------- There is no use of RSPO seal buy the Agropalma

mills. Only at the refinary of Belém. NA

4.2 Non conformity register.

This section gives an over view of new or revised non-conformities raised during this assessment and of action taken to close

out non-conformities raised during the previous assessments.

Major non-conformities raised during a main assessment will prevent the certification body from making a positive

certification decision for the concerned units/products.

The NC number is comprised of 2 parts to include the year in which the NC is raised as well as a sequential number.

4.2.1 Verification of previous assessment non-compliances

Non-compliance No first aid kits are available in workshops, field operation and mill.

Date raised 12.8.2015

Major or Minor Minor

Reference of standard 4.7.5

Correction at this audit

Full The guidance to staff in case of accident in the harvest is immediately call the coordinator and demand bus vehicle if it is not urgent. If it is urgent to call a faster car or call the ambulance. In the first aid equipment there stretcher and immobilizing equipment and sterile gloves for wounds parts of manipulation of the body. The emergency clinic was visited. This clinic is called AMBULATORIO AGROPALMA, and is located in Villa Palma Sector. This is a fully-equipped clinic and it holds trained staff with different units and services. Considering that has a huge number of employees, that has a transportation available in case of accident and that is a medical decision to avoid a complication of wrong use of First Aid the solution presented is considered correctly.

4.2.2 New non-compliances raised at this audit

NC number Not identified

Date raised ---

Major or Minor ---

Reference of standard ---

Standard requirement ---

Evidence of non-compliance ---

Date of closing: ---

4.2.3 Observations

Date raised ---

4.3 Lead Auditor Recommendations for the RSPO Principles & Criteria certification.

Grant/ Renewal/ Extension*

Maintenance*

Suspension

Refuse / Withdrawal

Certificate

* Grant / Renewal / Extension / Maintenance, in the case of open Minor nonconformities, assumes that the

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nonconformities will be cleared as agreed

OBS: The final decision whether the company will be granted with the RSPO P&C certification or not,

shall rely upon the certification body, after reviewing the audit documentation and taking in account

the lead auditor’s recommendation.

4.4 Comments for next audit.

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5. FORMAL SIGNING OF AUDIT FINDINGS

5.1 Acknowledgment of internal responsibility 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 IBD. That during the closing meeting all agenda items were covered by the lead auditor.

Name Carlos Alberto de Carvalho

Position Site Manager

Signature

5.2 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 are a true representation of

the actual findings of the audit team.

Name Alvaro Garcia

Position Lead Auditor

Signature

Date 22/07/2016

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6. Major non-compliances follow-up actions (exclusive use of IBD decision maker)

Verification of effectiveness by:

Follow-up on-site audit:

On-site review and evaluation of the introduction, implementation and effectiveness of non-compliance(s) correction and corresponding corrective actions.

Desktop audit:

Document assessment of root cause analysis and evidence of corrections and corrective actions submitted to the certification body.

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