Associated Smallholder Supply Chain Procedure

ASSOCIATEDSMALLHOLDERSUPPLYCHAINPROCEDURE

AssociatedSmallholderSupplyChainProcedureContentsPurpose..................................................................................................................................................2

Scope......................................................................................................................................................2

References..............................................................................................................................................2

Definitions..............................................................................................................................................2

Responsibility.........................................................................................................................................3

Requirements.........................................................................................................................................4

Acceptingnewsmallholders..................................................................................................................4

Maintainingcertifiedsmallholders........................................................................................................6

Suspensionorexclusioncriteria.............................................................................................................7

Sanctions..............................................................................................................................................14

Numberorpercentageofsuppliersassessedand/orengaged............................................................15


PurposeThe following procedure iswritten to guide howNBPOL accepts new smallholders andworkswith existingsmallholderstomaintaintheintegrityofourRSPOsegregatedsupplychain.Thisprocedureistobeadoptedas proof of Operational Control in compliance to the Integrated Management System and maintain ourcertifiedsustainablesegregatedsupplychaintradingstatus.

ScopeThisprocedureisapplicabletoallNBPOLOperatingUnitswithinPapuaNewGuineaandtheSolomonIslands.

References1. RSPO Principles and Criteria for Sustainable Palm Oil Production. Papua New Guinea National

Interpretation.26July2017.2. RSPOSupplyChainCertificationStandard.FororganizationsholdingorseekingRSPOcertification.14

June2017.1. RSPOManagementSystemRequirementsandGuidanceforGroupCertificationofFFBProduction7

March20162. RSPONewPlantingProcedure,20thNovember20153. IntegratedManagementSystem,25/02/16,NewBritainPalmOilLtd.

Definitions1. AccreditedLicensingScheme(ALS)-an initiativeof theHCVResourceNetworkwhichprovidequality

controlservicetoallnewplantingHCVassessmentsfortheRSPO

2. CertificationBody: Anyorganizationaccreditedby theAccreditationServices International to issueRSPOcertificatestooilpalmproducersagainstauditedproofofcomplianceagainstRSPOstandards.

3. Familyfarm-afarmoperatedandmostlyownedbyafamily,forthegrowingofoilpalm,sometimesalongwithsubsistenceproductionofothercrops,andwherethefamilyprovidesthemajorityofthelabourused.Suchfarmsprovidetheprincipalsourceof income,andtheplantedareaofoilpalm isbelow50hectares in size.Workbychildren isacceptableon family farms,underadult supervision;when not interferingwith education programmes;when children are part of the family andwhentheyarenotexposedtohazardousworkingconditions.

4. FreshFruitBunches(FFB)-Bunchesofpalmfruitsasharvestedfromoilpalmplantations/farms.

5. Grower-Thepersonorentitythatownsand/ormanagesanoilpalmdevelopment

6. IdentityPreserved(IP)-TheIdentityPreserved(IP)supplychainmodelassuresthattheRSPOcertifiedoilpalmproductdeliveredtotheenduserisuniquelyidentifiabletoasingleRSPOcertifiedmillanditscertifiedsupplybase.

7. InternalControlSystem-Adocumentedsetofproceduresandprocesses thatdefineshowasupplychain certification systemworks, ensures that records aremaintained, records internal audits andexplainsresponsibilities.Itdefineswhichstandardsareapplicableandensuresthatnon-compliancesaredealtwithaccordingtoasetofproceduresandsanctions.

8. Landpreparation-Anyactionthatprepareslandforoilpalmcultivationandassociateddevelopmentincluding the clearance or degradation of any existing vegetation, alteration of topography anddrainageorpreparationofsoils.

9. MassBalance (MB)- Supply chainmodel that allows certified claims to be transferred fromoneoilpalmproducttoanothereitherthroughphysicalblendingoradministrativelyunderstrictlycontrolledcircumstances.

10. Newplanting-Plannedorproposedplantingonlandnotpreviouslycultivatedwithoilpalmoronoilpalmwhichhasbeenabandonedforover3years.

11. Segregated (SG)- The Segregated (SG) supply chain model assures that RSPO certifiedoil palmproductsdeliveredtotheendusercomeonlyfromRSPOcertifiedsources.


12. Smallholders:Farmersgrowingoilpalm,sometimesalongwithsubsistenceproductionofothercrops,where the family provides the majority of labour and the farm provides the principal source ofincomeandwheretheplantedareaofoilpalmisusuallybelow50hectaresinsize.

a. Scheme Smallholders – Smallholders that may be structurally bound by contract, creditagreementorbyplanningtoaparticularmill,buttheassociationisnotnecessarilylimitedtosuch linkages. Other terms commonly used for scheme Smallholders include associatedand/orplasmaSmallholders.

b. Independent Smallholders – Smallholders that are not bound by any contract, creditagreementorplanningtoaparticularmill.

c. Associated Smallholders-“Papua New Guinea: The Task Force Steering Group notes thatsmallholders in PapuaNewGuinea (PNG) are not easily accommodated by the distinctionbetween ‘scheme’ and ‘independent’. Whereas most smallholders in PNG are legallyindependent,bycircumstancemostselltoparticularmillsandmaygetmanagementadvicefrom themills towhich they are linked. They also pay a levy, required by law, to receiveassistancefromstatutoryresearchanddevelopmentandextensionservices.ThePapuaNewGuineaNationalInterpretationWorkingGroupnotesthatPNG’ssmallholdersmeetsomeofthecharacteristicsofschemesmallholdersasheredefinedbutthegrouphas ‘unanimouslyaffirmedthatPNG’ssmallholdersarefundamentallyindependent.’Thegroupassertsthat‘athirddefinitionwilleventuallyberequiredforPNG’.”1

13. Supplybase-thesumtotalofsuppliersprovidingFFBtooneormoreMill.AmillanditssupplybaseisthebasicunitofcertifyingFFB.

14. Supply chain-The seriesofprocesses/steps throughwhichagricultural rawmaterialspass from theprimaryproducer through to theendproductmanufacturer (i.e. palmoil growing,milling, storage,transport,refining,manufacture,endproductetc).

15. Supply chain certification system- Downstream processors or users of RSPO certified oil palmproductscanclaimtheuseof(orsupportof)RSPOcertifiedoilpalmproductswhentheyadheretotheRSPOSupplyChainCertificationSystemsandwherethisisindependentlyverifiedbyanaccreditedcertificationbody.

ResponsibilityGroupHeadofSustainability

• Assurealltoplevelmanagementarefullyawareofandabletocomplywiththerequirementsposedbythisprocedure

GeneralManager

• providetheapprovalforplanningandbudgetingarerequiredbysmallholderestates• approvebudgetforadditionalcostsofcarryingoutthestudies,peerreviewsandverificationbythe

CertificationBodiesandtheRSPOasrequiredbythisprocedure.

SmallholderAffairsManager

• communicate all RSPO new planting requirements to prospective new smallholders and existingsmallholders

• carryoutauditsofcompliancetoallsmallholdersinconjunctionwiththeSustainabilityManager• liaisewiththeSustainabilityManagertoensureallpreliminaryassessments, reportsarecarriedout

andverifiedaspertheRSPOrequirements

1RSPOPrinciplesandCriteriaforSustainablePalmOilProductionGuidanceonSchemeSmallholders:PreparedbytheTaskForceonSmallholdersDated:2ndJuly2009


• communicateandupdateOPIConallRSPOrequirements

SustainabilityManager

• communicateallRSPOrequirementstorelevantNBPOLstaff• providetrainingandsupporttotheSmallholderAffairsDepartmentonRSPOcompliance• carry out audits of compliance of the Smallholder Affairs Internal Control Systems and audits to

ensureRSPOcomplianceofsmallholdersupplybase• liaisewiththeGroupSustainabilityManagertocoordinateandscheduletheindependentassessorsto

dorequiredassessmentsatrespectivesites.• providetechnicalsupporttofacilitateimplementationofnewplantingrequirements• reviewandapproveallnewplantingproceduredocumentationtosubmittoRSPO

GroupSustainabilityManager

• supportsiteSustainabilityManagersbyensuringtherequiredindependentassessorsarecontractedandprovidedtorespectivesitesforindependentassessments

• approveandsubmitallNPPdocumentationtoCBandRSPOforverificationandposting• liaisewithRSPOonanyadditionalrequirementsasnecessarytoproceed

RequirementsThe following requirements guide hownew associated smallholder (hereafter referred to as “smallholders”canenter intoour supply chain,howexisting smallholdersaremaintainedwithinour supplychainandhownon-compliant members are removed from our supply chain. This document provides guidance for theinternalcontrolsystemtobeimplementedbyeachOperatingUnit.Forconceptualpurposeseachsmallholderistobeconsideredanindependentestateofitsownwhichcanonlybeacceptedintooursupplybase/supplychainoncedeemedcomplianttoourstandards.Onceasmallholderhasbeenapprovedtoenteroursupplychain, it is issueauniqueblocknumberandadded to the listof supplierswhichareauditedaspartofourinternalauditprogramandauditedbytheCertificationBody. Theblocknumberprovidesareferenceforallongoingagronomicand financial informationpertaining to that grower. All smallholders supplying certifiedFFB, ie/every block number, must possess documentation proving it has passed initial screening, inputs(ie/tools, fertilizer issues), financial information (payments and outstanding loans) and non-conformanceswhere applicable. Smallholders that are deemed non-compliant are sanctioned and their FFB is no longeraccepted into our supply chain. Sanctioned growers may re-enter our supply chain if they are provencompliantbyaCertificationBody.

AcceptingnewsmallholdersAlloftheNBPOLOperatingUnitsmusthaveaStandardOperatingProcedureforacceptingnewsmallholdersinto our supply base and supply chain. The StandardOperating Proceduremust contain the key elementsdescribedinthisProcedure.Sinceallexistingsmallholdersarealreadypartofour100%RSPOcertifiedsupplychain,anynewsmallholderswillrequireanewplanting.Onlysmallholdersthathavepassedthroughthenewplanting procedure are approved to enter our supply base and subject to the rules of this supply chainprocedure.ThenewplantingprocedureissuedbyRSPOnowappliesfullytoallsmallholders.WhileNBPOLstillutilizesthePlantingApprovalFormandtheClanLandUseAgreementthesearenownecessarilyprecededbythepreliminarystudiesrequiredbytheRSPO’sNewPlantingProcedure.Thismeansthat’sthatallpreliminarystudies, peer reviews and reporting requirements to the RSPO have to be fulfilled for each new plantingregardless of size and before any land preparation has begun. The latter is especially important as allprocedural documentation can be audited retrospectively against proof of new developments as detected;e.g.bysatelliteimageryanalysis.

The followingdiagramsummarizes theoverallprocess requirementsandresponsibilities, furtherguidance isavailableinthenewplantingprocedureissuedbyRSPO:

Figure1:Diagramofprocessrequiredforeachnewplanting


It is recognized that itwillnotbepossible tocomplywithall requirements foreach individual smallholders.Therefore it is required that a minimum of 100 hectares of potential smallholders are assessed anddocumentedtogether.Itisessentialthatthesesmallholdersaresituatedrelativelyclosetooneanother,e.g.withinonewatershed,sothattheycanbegroupedwithinoneassessment.Thefollowingtablesummarizestheinchronologicalordertheassessmentstobecarriedoutandtheresponsibility:

Table1:Summaryofassessmentsrequiredtobeconductedforeachnewplanting

Assessment Objective Typeofverification Responsibility

Preliminaryassessment Decidewhethertoproceedornotbasedonaccessibility,slopeandcurrentlandcoverusingvegetationasaproxyforHCSandHCV.

Internal SmallholderAffairs,Sustainability

Soilsuitabilitystudy Ensurenofragile,peatorothersoilsnotsuitable

Internal Sustainability,TechnicalServiceDepartment

Landusechangeanalysis ToestablishlandcoverandlandusechangeasofNovember2015

Internal Sustainability,TechnicalServiceDepartment

HighCarbonStockAssessment

Toestimatethecarbonstockofthelandcoverontheproposednewdevelopmentarea

External Sustainability

HighConservationValueAssessment

IdentifyandmanagetomaintainorenhanceHCVswithinproposednewdevelopment

External ALS,

Sustainability

SiteSpecificSocialEnvironmentalImpactAssessment

Identifyandmanagesocialimpactoftheproposednewdevelopment

Internal Sustainability

GreenhouseGasAssessment ModelthepossibleemissionsofdevelopmentoptionstakingHCVandHCSintoconsideration

External RSPO,Sustainability

1•Definitionofproposednewoilpalmdevelopment•Responsibility:SmallholderAffairs

2•StakeholderengagementandFPICprocessinitiated•Responsibility:SmallholderAffairs,Sustainability

3•Conductassessments:SEIA,HCVassessment,LUCanalysis,soilsuitabilityandtopographicsurveyandGHGassessment•Responsibility:Sustainability

4•Developmentofmanagementplans•Responsibility:SmallholderAffairs,Sustainability

5•ReportingandverificationofNPPreport•Responsibility:GrowerandCertificationBody

6•Publicnotificationandcommentperiod•Responsibility:Grower,CertificationBodyandRSPOSecretariat

7•Resolutionandcompletion•Responsibility:Commenter,GrowerandRSPOSecretariat

•Finalinspections(CLUA,PAF)andissuanceofseedlings,toolsetc


Allof theseassessmentswillhavetobesubmittedtoaCertificationBody (CB) to theRSPOtopostontheirNew Planting s Notification website for a period of 30 days prior to the start of the new planting. Thedocumentationissummarizedtocontainthefollowing:

• NPPnotificationstatement• Summaryofassessmentreports(SEIA,HCV,soilandtopography,LUC,GHG)• Summaryofmanagementplans

TheexactformatofthedocumentationisoutlinedintheRSPONewPlantingProcedure(Annex1)andmustbeaccompaniedbyastatementofverificationfromtheCBaswellasalltheexternalassessorsutilizedincarryingoutandproducingthebaseassessments.

NBPOLrecognizesthecomplexityofthisprocessandtheeffectitwillhaveonallowingnewsmallholdersintoour supply chains. Because of the importance ofmaintaining our integrity as a 100% certified sustainableproducer it is of utmost importance that the complexities of this requirement is duly communicated to allrelevantstakeholders.SpecialemphasisandresourcesarenecessarytocommunicatekeymessagestoOPIC,GrowersAssociationsandthesmallholdersthemselvestodistilthisinapalatableformat.

Administration

Once a new smallholder has been approved it is important that adequate technical support is provided toensurethatplantingsarewithintheapprovedareasandconductedaspertheagronomicstandardsrequired.Eachnewsmallholder is issuedauniqueblocknumberagainstwhichagronomicandfinancial information iskept.ThisincludesbankaccountdetailstoissuepaymentsforFFB.OnceablocknumberhasbeenapprovedtheSmallholderAffairsManagercanissueinstructionsforseedlingsandotherinputs(ie/tools,fertilizer)tobedeliveredtothesmallholder. TheseedlingsareplantedundersupervisionoftheSmallholderAffairsstafftoensure they are planted within the approved area. All inputs are provided as interest free loans to berecoveredataratenomorethan50%ofthesubsequentFFBsales.DuringthisprocessthesmallholdersareprovidedthetechnicalsupporttocomplywithRSPOstandards.

MaintainingcertifiedsmallholdersOnce a smallholder has entered into our certified supply base they are required to comply with RSPOstandards as relevant. As per the guidance provided by the RSPOManagement System Requirements andGuidance forGroupCertificationofFFBProduction (March2016), the smallholdersare included inourownP&C certificate. As such these growers are subject to our standards as well as both internal and externalaudits. Operating Units are required to provide the technical support which will ensure compliance to ourstandardsandhaveaprocedureforinternalauditsandnon-conformances.

SelectionandTrainingofAuditors

SustainabilityDepartmentpersonnelaretrainedasauditorstoenableeffective,impartialauditstobecarriedoutonalldepartmentsandactivitiesinthescopeoftheSustainabilityManagementSystemonaregularbasis.Auditorsmayincludepeoplewithknowledgeofprocessesandlegalrequirementswhilstconductingaudits.

Internal Auditorsmay be permanent employees of NBPOL, employees of other companieswithin the SimeDarbyGroup,orexternalindividualsorcompaniesappointedfromtimetotimeforinternalauditsofgeneralorspecificpurposes.

TheSMidentifiestheneedforaudittraining,conducts internaltrainingandwherepossiblecooperateswiththe TrainingDepartment to arrange training by an appropriate external training organization. At least twoauditorsarerequiredtobequalifiedforSustainabilityManagementSystemsauditing.Theseauditorsprovidecanadditionalon-the-jobtrainingforothermembersoftheSustainabilityTeam.

PlanningofIntegratedAuditSchedules

Auditsarenormallyplannedonthebasisofdepartmentstoenableallproceduresandcontrolsapplicabletothatdepartment tobecheckedduringeachaudit. Eachoperating location isauditedeverysixmonthsasaminimum.


Additionalauditsmaybescheduledforareasofhighenvironmentalriskorhighincidenceofnonconformance.Thesechanges toaudit frequencyareat thediscretionof theSustainabilityManagerwhoconsultswith therespectiveDepartmentManagerstoagreewhentoincrease,ordecrease,auditfrequency.

The SustainabilityManager shall compile an annual schedule of audits on the Internal Audit Schedule andprovidescopiestoallDepartmentManagers.AnnualAuditschedulemustbecompiledandissuedtwomonthspriortothestartoftheyearlyauditschedule.

AuditChecklists

AuditChecklistsarepreparedinadvanceoftheAudittoallowtheauditortopreparefortheaudit.Standardchecklistsarepreparedforstandardlocations.However,sitespecific;ortopicspecificchecklistsmayalsobepreparedasandwhenrequired.AnauditchecklistforsmallholdersisprovidedinAnnex3oftheseGuidelines.

PerformanceandReportingofAudits

TheSustainabilityManagerselectseitherasingleauditororteamofauditorstoconducttheinternalaudit.Amemberoftheteamisappointedtobeleadauditor.Theleadauditorisresponsiblefordirectingtheworkofthe team members, agreeing the scope of the audit with the manager of the department being audited,resolving any dispute or uncertainty in audit findings and conclusions, coordinating the findings andrecommendations of the audit team and reporting the audit results to the Department Manager andSustainabilityManager.

Auditorsconducttheauditsbyanappropriatecombinationof:• interviewingkeypersonnel• examiningdocumentation,includingproceduresandrecords• observingphysicaloperations

TheinternalauditmonitorscompliancewiththerequirementsofISOandlegalandregulatoryrequirements.Priorityinauditsisgiventocheckinglegalcomplianceandtheeffectivenessofcorrectiveactiononpreviousnonconformance. Beforeeachaudit theSustainabilityManagerensures that theauditorsareawareof thelegalrequirementsoftheactivitytobeaudited.

It is essential to record factual data and information as evidence of an effective audit and to enable thedepartmentpersonneltolocateandunderstandproblemsforcorrectiveaction.

The findings of audits are recorded on a Quality Improvement Plan. A copy of each completed record isprovidedfortherespectiveDepartmentManager.

Theauditidentifiesandrecordsallareasof:• Majornonconformancewithcriteria• Minornonconformancewithcriteria• Observationsforimprovementduetoweaknessesincontrols

ActualandpotentialnonconformanceisreportedandcorrectedusingtheQIPworksheet.Ifanonconformanceisdiscoveredduringtheaudit,theleadauditorraisesaNonconformanceandCorrectiveActionRecord.

VerificationofCorrectiveAction

Followingeachaudit it is theresponsibilityoftherespectiveDepartmentManagertodecideand implementappropriatecorrectiveandpreventiveactionand timeframes inagreementwith theSustainabilityManager.The Sustainability Manager monitors the progress of corrective and preventive action and signs off whencompleted.

SuspensionorexclusioncriteriaCriteria for thesuspensionorexclusionof smallholdershavebeen taken fromtheNational Interpretationofthe RSPO Principles and Criteria provided by the PNG National Interpretation Task Force. The NationalInterpretation has been prepared by the PNGNI Task Forcewhich has been assembledwith representationfrom the Palm Oil Industry, Smallholders, the Government of PNG, NGOs and the Financial Sector. IndevelopingthisNational Interpretation, theTaskForcewasveryconsciousofnotdiminishing inanywaythehighstandardssetforpalmoilproductionbythegenericPrinciplesandCriteriaandbelievesthatinsomeareasthis document is even more stringent. The Task Force has, however, been very conscious of the unique


structure of the Industry in PNG and has taken great care to recognise the geographical and infrastructurelimitations that result in geographically associated Smallholders often effectively having only one possiblecustomer.

As adeveloping countrywith longestablishedandveryeffective customarymechanisms for recognising theright to use the land, a government that is still developing its ability tomaintain “western” land ownershipsystemsand literacy levelsthatare lowerthanmoredevelopedcountries,PNGhaspresentedachallengetotheTaskForce.WebelievethatwehaveestablishedarobustapproachtodemonstratingcomplianceutilisingthemosteffectiveofcustomaryandlegislatedrequirementsandhaveverifiedthisapproachthroughextensiveconsultationwithSmallholdersandlocalpeoples.

InrecognitionofspecificcompliancerequirementsthatSmallholdersmustaddress,thisNationalInterpretationmakes clear the obligations on Smallholders for those indicators that are directly applicable to them andprovidesguidancetothemforverificationofcompliance.WherenoguidanceforSmallholdersisprovided,therequirementsapplytoproducercompaniesonly.

ThePNGOilPalmIndustryCorporation(OPIC)isalevyfundedagencyofthePNGGovernmentresponsibleforarangeofindustrysupportactivitiesincludingprovidingadvice,disseminatinginformationandeducatingsmall-holdersregardingoilpalmproductionmethods.

ThefollowinglistcomprisesallofthekeyCriteriatowhichsmallholdersmustbecompliant.ThosethatareinredtextareCriticalandmustbecompliedwith.NotethatGuidanceasprovidedintheNationalInterpretationhasbeenleftoutofthisdocumentforpurposesofbrevitybutshouldbeusedbytheManagerasrequired.

No. PRINCIPLESANDCRITERIA INDICATORS/GUIDANCE

PRINCIPLE1:COMMITMENTTOTRANSPARENCY

1.2 Managementdocumentsarepubliclyavailable,exceptwherethisispreventedbycommercialconfidentialityorwheredisclosureofinformationwouldresultinnegativeenvironmentalorsocialoutcomes.

AssociatedSmallholderRequirement:

OilPalmIndustryCorporation(OPIC)toholdrelevantdocumentsandmakeavailabletointerestedpartiesonrequest.

1.3 Growersandmillerscommittoethicalconductinallbusinessoperationsandtransactions.


OilPalmIndustryCorporation(OPIC)requiredtohaveawrittenpolicycommittingtoacodeofethicalconductandintegrityinalloperationsandtransactions


PRINCIPLE2:COMPLIANCEWITHAPPLICABLELAWSANDREGULATIONS

2.1 Thereiscompliancewithallapplicablelocal,nationalandratifiedinternationallawsandregulations.


2.1.1 AssociatedSmallholdersaretocomplywithallapplicablePNGlegalrequirements.

2.1.2 DoesnotapplytoindividualassociatedSmallholdershoweverOPICtoprovideinformationaspartoftheirextensionactivities.

2.1.3 OPICandCompaniestomonitorcomplianceduringextensionactivities.Blockinspectionreportstoprovideevidenceofcompliance.

2.1.4 OPICtodisseminateinformationonlegalchangestoassociatedSmallholders.CompanySmallholderdepartmentstodisseminatethisinformationinlocationswhereOPICisnot




represented.

2.2 Therighttousethelandisdemonstrated,andisnotlegitimatelycontestedbylocalpeoplewhocandemonstratethattheyhavelegal,customaryoruserrights.


2.2.1 ForassociatedSmallholders,evidenceofthe“Righttousetheland”willbedemonstratedbycompliancewiththefollowing:

a)LandtitleorleaseORuncontestedoccupancywhere

• boundarieshavebeendefinedbyaregisteredsurveyorandportionnumbersallocatedbytheSurveyorGeneralorboundarieshavebeendefinedbytraditionalmeansandagreedbetweenneighborswithcommonboundariesandotherinterestedparties;AND

• thereisnosignificantdisputeovertenure(see2.2.4);

2.2.2 ForSmallholderallotments,boundariesmaybeidentifiedbytraditionalmeansprovidedthatboundarylocationsareagreedbyallneighbouringpartiesthatsharecommonboundaries.

2.2.3 ForSmallholderland,agreementofresolutionofdisputesshallbedemonstratedbyappropriatedocumentationorbydemonstratedagreementofinterestedparties.

2.2.1 Thereshallbeanabsenceofsignificantlandconflict,unlessrequirementsforacceptableconflictresolutionprocesses(seeCriteria6.3and6.4)areimplementedandacceptedbythepartiesinvolved.[Major]

2.2.5 Foranyconflictordisputeovertheland,theextentofthedisputedareashallbemappedoutinaparticipatorywaywithinvolvementofaffectedparties(includingneighboringcommunitieswhereapplicable).[Minor]

2.2.6 To avoid escalation of conflict, there shall be noevidence that palm oil operations have instigatedviolenceinmaintainingpeaceandorderintheircurrentandplannedoperations.[Major]

2.3 Useofthelandforoilpalmdoesnotdiminishthelegal,customaryoruser

Indicators:

2.3.1 Mapsofanappropriatescaleshowingtheextentof




rightsofotheruserswithouttheirfree,priorandinformedconsent.

recognisedlegal,customaryoruserrights(Criteria2.2,7.5and7.6)shallbedevelopedthroughparticipatorymappinginvolvingaffectedparties(includingneighbouringcommunitieswhereapplicable,andrelevantauthorities).[Major]


PRINCIPLE4:USEOFAPPROPRIATEBESTPRACTICESBYGROWERSANDMILLERS

4.1 Operatingproceduresareappropriatelydocumented,consistently

implementedandmonitored.


4.1.2 OPICandCompaniestomaintainproductionrecordsandfielddayattendancerecordsasevidenceofimprovedperformance.

4.2 Practicesmaintainsoilfertilityat,orwherepossibleimprovesoilfertilityto,alevelthatensuresoptimalandsustainedyield.


4.2.1AssociatedSmallholderstoimplementgoodagriculturepracticesascommunicatedthroughextensionservicesdeliveredbyOPICandCompanySmallholderdepartments.

4.2.2OPICand/orCompanySmallholderDepartmentstomaintainrecordsoffertiliserdistribution.

4.2.3OilPalmResearchAssociation(OPRA)totaketissuesamplesfromrepresentativeAssociatedSmallholdersannually

.

4.4 Practicesmaintainthequalityandavailabilityofsurfaceandgroundwater.


4.4.2Smallholdersmustprotectwatercoursesandwetlandsbynotpollutingwithrubbishorotherwaste.

4.5 Pests,diseases,weedsandinvasiveintroducedspeciesareeffectivelymanagedusingappropriateIntegratedPestManagementtechniques.


4.5.1CompaniestomanageIPMprogramforAssociatedSmallholders.

4.5.2CompaniestomanageIPMforAssociatedSmallholders

4.6 Pesticidesareusedinwaysthatdonotendangerhealthortheenvironment


4.6.2CompanytomaintainrecordsofherbicideissuetoAssociatedSmallholders.

4.6.3CompanytomanageIPMforAssociatedSmallholders.

4.6.4AppliestoassociatedSmallholders.

4.6.5AssociatedSmallholdersusingand/orstoringpesticidesmustdemonstrateknowledgeofthecorrecthandling,storage,applicationanddisposalrequirements.

4.6.1 StorageofallpesticidesshallbeaccordingtoSafetyDataSheetrequirementsandrecognisedbestpractices.




Usedherbicidecontainersmay,aftertriplerinsing,beusedfortransportingpre-mixedherbicidetosprayingoperationsintheplantation.Attheendoftheirusefullives,theyshallbeproperlydisposedofandnotusedforotherpurposes(seeCriterion5.3).[Major]

4.6.2 Applicationofpesticidesshallbebyprovenmethodsthatminimiseriskandimpacts.[Minor]

4.6.9 MaintenanceofemployeeandassociatedSmallholderknowledgeandskillsonpesticidehandlingshallbedemonstrated,includingprovisionofappropriateinformationmaterials(seeCriterion4.8).[Minor]

4.6.10 Properdisposalofwastematerial,accordingtoproceduresthatarefullyunderstoodbyworkersandmanagersshallbedemonstrated(seeCriterion5.3).[Minor]

4.6.11 Specificannualmedicalsurveillanceforpesticideoperators, and documented action to treatrelated health conditions, shall bedemonstrated.[Major]

4.6.12 Noworkwithpesticidesshallbeundertakenbypregnantorbreast-feedingwomen.[Major]

4.7 Anoccupationalhealthandsafetyplanisdocumented,effectivelycommunicatedandimplemented.


4.7.2OPICand/orCompanySmallholderDepartmentstoprovideadviceandtrainingonidentificationandcontrolofrisksthroughextensionactivities.

4.8 All staff, workers, Smallholdersand contract workers areappropriatelytrained.


4.8.1OPICandCompanySmallholderdepartmentstoprovideadviceandongoingsupporttoassociatedSmallholdersthroughfielddaysandvisitstoSmallholderblocks.


PRINCIPLE5:ENVIRONMENTALRESPONSIBILITYANDCONSERVATIONOFNATURALRESOURCESANDBIODIVERSITY

5.1 Aspectsofplantationandmillmanagement,includingreplanting,thathaveenvironmentalimpactsareidentified,andplanstomitigatethenegativeimpactsandpromotethepositiveonesaremade,implementedandmonitored,todemonstratecontinualimprovement.


5.1.2Improvementssuggestedatthepre-plantinginspectionshouldbenotedontheinspectionform.

5.1.3EnvironmentalmanagementimprovementssuggestedbyOPICand/orCompanySmallholderDepartmentsduringroutineblockinspectionsshallbeimplementedaspracticable.

5.2 Thestatusofrare,threatenedorendangeredspeciesandotherHighConservationValuehabitats,ifany,


5.2.3OPICandCompanySmallholderdepartmentstoprovide




thatexistintheplantationorthatcouldbeaffectedbyplantationormillmanagement,shallbeidentifiedandoperationsmanagedtobestensurethattheyaremaintainedand/orenhanced.

adviceandsupporttoassociatedSmallholdersthroughfielddaysandvisitstoSmallholderblocksaspartoftheirroutineextensionactivities.

5.3 Wasteisreduced,recycled,re-usedanddisposedofinanenvironmentallyandsociallyresponsiblemanner.

Indicators:


5.3.2AllchemicalsandtheircontainersshallbedisposedofinaccordancewiththerequirementsoftheapplicableSafetyDataSheet.Ataminimum,containersshallbetriplerinsedwithcleanwaterandpuncturedtopreventre-useforliquidstorage.Wheretriplerinsingisdemonstratedtoeliminatearisktosafetyortheenvironment,re-usemaybepermittedforcarryingpre-mixtothefield,cuttingdownandusingaswastebinsandevenusingnon-pesticidecontainersfornon-potablewaterstorage.[Major]

5.3.3Smallholdersmustdemonstrateplannedwastemanagementanddisposalbydisposingofwasteproductsinadesignatedwastepit.

5.5 Useoffireforpreparinglandorreplantingisavoided,exceptinspecificsituationsasidentifiedintheASEANguidelinesorotherregionalbestpractice.


5.5.1 Thereshallbenolandpreparationbyburning.[Major]

5.5.2 Fireshallnotbeusedforpreparinglandforreplanting.(Major)


PRINCIPLE6:RESPONSIBLECONSIDERATIONOFEMPLOYEESANDOFINDIVIDUALSANDCOMMUNITIESAFFECTEDBYGROWERSANDMILLERS

6.7 Childrenarenotemployedorexploited.

Indicators:

6.7.1Thereshallbedocumentaryevidencethatminimumagerequirementsaremet.[Major]

6.9 Thereisnoharassmentorabuseintheworkplace,andreproductiverightsareprotected.


6.9.1AssociatedSmallholdersmustbeabletoverballyexplainthattheyunderstandandobservethisrequirement.

6.9.2AssociatedSmallholdersmustbeabletoverballyexplainthattheyunderstandandobservethisrequirement

6.10 GrowersandmillersdealfairlyandtransparentlywithSmallholdersandotherlocalbusinesses.


6.10.3AssociatedSmallholdersmustbeabletoverballyexplainthattheyunderstandandobservetheirobligationsandtheobligationsoftheCompanytowhomtheyaresellingtheirfruit.

6.11 Growersandmillerscontributetolocal AssociatedSmallholderRequirement:




sustainabledevelopmentwhereappropriate.

6.11.2AssociatedSmallholdershouldparticipateinFielddaysandotherextensionactivitiesdeliveredbyOPICandCompanySmallholderdepartments.CompaniesshallmaintainrecordsofSmallholderproductivity.

6.12 Noformsofforcedortraffickedlabourareused.


6.12.1AssociatedSmallholdersmustbeabletoverballyexplainthattheyunderstandandobservethisrequirement.


PRINCIPLE7:RESPONSIBLEDEVELOPMENTOFNEWPLANTINGS

7.2 Soilsurveysandtopographicinformationareusedforsiteplanningintheestablishmentofnewplantings,andtheresultsareincorporatedintoplansandoperations.

Indicators:

7.2.1 Soilsuitabilitymapsorsoilsurveysadequatetoestablishthelong-termsuitabilityoflandforoilpalmcultivationshallbeavailableandtakenintoaccountinplansandoperations.[Major]

7.2.2 Topographicinformationadequatetoguidetheplanningofdrainageandirrigationsystems,roadsandotherinfrastructureshallbeavailableandtakenintoaccountinplansandoperations.[Minor]

7.3 NewplantingssinceNovember2005havenotreplacedprimaryforestoranyarearequiredtomaintainorenhanceoneormoreHighConservationValues.

Indicators:

7.3.1 Thereshallbeevidencethatnonewplantingshavereplacedprimaryforest,oranyarearequiredtomaintainorenhanceoneormoreHighConservationValues(HCVs),sinceNovember2005.NewplantingsshallbeplannedandmanagedtobestensuretheHCVsidentifiedaremaintainedand/orenhanced(seeCriterion5.2).[Major]

7.3.2 AcomprehensiveHCVassessment,includingstakeholderconsultation,shallbeconductedpriortoanyconversionornewplanting.ThisshallincludealandusechangeanalysistodeterminechangestothevegetationsinceNovember2005.Thisanalysisshallbeused,withproxies,toindicatechangestoHCVstatus.[Major]

7.4 Extensiveplantingonsteepterrain,and/ormarginalandfragilesoils,includingpeat,isavoided.

Indicators:

7.4.1 Mapsidentifyingmarginalandfragilesoils,includingexcessivegradientsandpeatsoils,shallbeavailableandusedtoidentifyareastobeavoided.[Minor]

7.4.2 Where limited planting on fragile and marginal soils,including peat, is proposed, plans shall be developedand implemented to protect them without incurringadverseimpacts.[Major]

7.6 Whereitcanbedemonstratedthatlocalpeopleshavelegal,

Indicators:




customaryoruserrights,theyarecompensatedforanyagreedlandacquisitionsandrelinquishmentof

rights,subjecttotheirfree,priorandinformedconsentandnegotiatedagreements.

7.6.1 Documentedidentificationandassessmentofdemonstrablelegal,customaryanduserrightsshallbeavailable.[Major]

7.6.2 AsystemforidentifyingpeoplewhoaretherightfulcustomaryownerswithinthePNGlegalsystem,shallbeinplace.[Major]

7.6.3 Asystemforcalculatinganddistributingfairpayment(monetaryorotherwise)shallbeestablishedandimplemented,monitoredshallbeinplace.Thissystemshalltakeintoaccount:genderdifferencesinthepowertoclaimrights,localcommunitycustomaryownershipofland,accesstolandforcustomarypurposesandtherequirementsofthePNGGovernment’s“ValuerGeneral’sGuide”.TheprocedureshouldrecognisedifferentmechanismsforagreementontherighttousethelandrangingfromoutrightpurchasetoleasesandCLUAsofvaryingdurations.Paymentsmayincludearoyaltycomponentbasedonproductionandthemeansofdistributionmustalsobedefined[Major]

7.7 Nouseoffireinthepreparationofnewplantingsotherthaninspecificsituations,asidentifiedintheASEANguidelinesorotherregionalbestpractice.


7.7.1AssociatedSmallholdersmustbeabletoverballyexplainthattheyunderstandandobservethisrequirement

7.7.2AssociatedSmallholdersmustbeabletoverballyexplainthattheyunderstandandobservethisrequirementforassociatedSmallholdersmaybenecessary.

7.8 Newplantationdevelopmentsaredesignedtominimisenetgreenhousegasemissions.

Indicators:

7.8.1 Thecarbonstockoftheproposeddevelopmentareaandmajor potential sources of emissions that may resultdirectly from the development shall be identified andestimated.[Major]

7.8.2 ThereshallbeaplantominimisenetGHGemissionswhichtakesintoaccountavoidanceoflandareaswithhighcarbonstocksand/orsequestrationoptions.[Minor]

SanctionsIf a smallholder is found non-compliant to a critical criteria then they are to be sanctioned. Thismeanstheircropisnotpurchaseduntiltheycanprovetobecompliant.Ifasmallholderdevelopsanewplantingwithoutfollowingthedueprocesstheircropissanctionedforthreeyears.


Numberorpercentageofsuppliersassessedand/orengagedInordertomaintainoursegregatedRSPOcertifiedsupplychainallsmallholdersmustbeassessed.Inordertomaintaintheirvalidityinthegrouptheinternalauditsystemmustassesssampleofallofthesmallholders.Thesampleiscalculatedutilizingthefollowingformulas:

Numberof

groupmembers=y

Minimum(baseline)

=0.8√y

Level1-Lowrisk

=(0.8√y)x(1)

Level2-Mediumrisk

=(0.8√y)x(1.2)

Level3-Highrisk

=(0.8√y)x(1.4)

TherisklevelisdeterminedbytheSustainabilityManagerandtheSmallholderAffairsManager.Thesmallholders may be stratified as per Divisions so as to minimize auditing where variable risk isperceived.Thefollowingcriteriaisutilizedtoassessrisklevel.

LowriskDivisionsarethosewheretheDivisionisrelativelyhomogeneousi.e.geographicallyaswellassocioeconomically,andwheretherearenocurrentreplantingactivities,nocurrentexpansion,nonewmembers,theDivisionanditsmanagerarewellestablishedand,forsubsequentassessments,havenohistoryofnon-conformities.

MediumriskDivisionsarethosewherethereissomehomogeneitybutitisnotuniformacrosstheGroup.ThereisnoreplantingandorexpansionbuttheDivisionmanagementhasahistoryofnon-conformities.

High risk Divisions are those where there is considerable heterogeneity in the Division (e.g.geographicallyor jurisdictionally separated, verydifferent terrain,different levelsofexperienceofoil palm cultivation, very diverse sizes of plantation, different socioeconomic situations amongstmembers, etc.), where there is recent expansion or replanting, and/or where the Groupmanagementhasrecentlyundergonechanges.


Annex1PlantingApprovalForm

OILPALMNEWPLANTINGAPPROVALFORM

1. RegistrationofInterest

CircleYesorNo

1.1 HastheapplicantapproachedSHAtoregisterhis/herinterest?

Yes No

1.2 Hastheapplicantbeenadvisednottocommenceclearinguntiltheareahasbeeninspectedandapproved?

Yes No

2. LandOwnership

CircleYesorNo

2.1 DoestheapplicanthaveaClanLandUsageAgreement(CLUA)forthisblock?

Yes* No

2.2 CLUA/LandTitleNo.

*Evidenceneedstobeprovidedasproofoflandownershipforthisblock.AcopyoftheCLUAshouldbeattachedtothisform.

Pleasecircleoneofthefollowing;

New/Additional/NBPOLAdvance/OtherfundingSource

3. RoadNetwork

Tickoneonly

NameofRoad

3.1 Noexistingtrackorroadconnectingthisblock n/a

3.2 Track,nongraveled,newareawithnoexistingblocks n/a

3.3 NongraveledroadnowusedforsmallholderFFB

APPLICANT’SDETAILS

DIVISION AREA/VILLAGE

SECTION

APPLICANT’SNAME BLOCKNo.

DATEINSPECTED INSPECTING

OFFICER GPSCoordinates

AlongRoad


collectionandtransport3.4 GraveledroadnowusedforsmallholderFFBcollection

andtransport

3.5 OroExpansionincompleteroad(exPNGIF)withexistingblocks

NOTE:Iftheapplicanthasresponded“No”toquestion2.1orifeitherquestions3.1or3.2are ticked,pleaseadvise theapplicant that theyareNOTELIGIBLE FORNEWPLANTINGunderthenewplantingandexplainwhy. Ifthe inspectingofficer isattheblocksitetheofficer should requestpermission togatheradditionaldataand ifpermission is grantedtheofficerwillcompletethesketchmap.STOPtheapprovalprocesshere.Dateandsignsection11.

Otherwisecontinuefillingtheform.


Sketchofproposedblock

Usingthegridbelowprovideasmuchdetailonthemainfeaturesoftheapplicantsblock.Eachsquareisequivalentto0.1haor10mx10m.

Slopedarea

RiverorCreek

Road Forest XXX

XXXGardens

^^^

^^^

Existing

Palms

hh

hh

Regrowth ***

***

PoisonedPalms

N


4.Topography

NatureofTerrain

Area(ha)

%oftotalarea

PlantingGuidelines

4.1 Flat

4.2Sloping Slopebetween5oand15o[risingbetween0.5mand2mverticallyforevery7.5mhorizontally]

Liningofrowstobelaidouttominimizeerosionfromrunoffonceblockisapprovedforplanting

Slopebetween15oand25o[rising2mverticallyforevery7.5mhorizontally]

Benchestobecut,inspectedandcover

cropestablishedpriortoplanting.Rowsdesignedtominimizerunofferosion.

4.3Gullied Slopebetween15oand25o[risingbetween2mand2.5mverticallyforevery7.5mhorizontally]

Benchestobecut,inspectedandcover

cropestablishedpriortoplantingRowsdesignedtominimizerunofferosion.

Slopemorethan25o[risingmorethan2.5mverticallyforevery7.5mhorizontally]

NOTALLOWEDTOBEPLANTED

4.4 Steep Slopemorethan25o[risingmorethan2.5mverticallyforevery7.5mhorizontally]


5.Vegetation

Area(ha)

%oftotalarea

PlantingGuidelines

5.1 PrimaryForest

AreaeitherhasneverbeenloggedorhasnotbeenloggedafterNovember2005(RSPOP&C)orthereareatleast5treesperhectaremeasuringgreaterthan50cmdbhandnograssesunderneaththecanopyfor50metresfromtheforestedge.


5.2 RegeneratingForest

Areamayhavebeenselectivelylogged,hasadenseundergrowthoftrees,



analmostcontinuouscanopyandwouldnotbeusedforanyotherpurposeandisregeneratingbacktoprimaryforest.

5.3 ImpactedForest

Areamayhavebeenloggedbutwillinthefutureregenerate.Tobe“impacted”theareamayhaveloggedstumps,rottinglogs,disturbedlogdumpsitesetc,andwithoutoilpalmdevelopmentwouldnotbeusedforanyotherpurposeandwillregenerate.


5.4 Impactedandnon-regenerating

Areais“otherthanforest”e.g.grassland,temporarygardens,mayhavebeenlogged,isnotregeneratingandwillnotregenerateinthefuture.

Allowedtobeplanted,subjecttosection7requirements

6.BufferZones

CircleYesorNo PlantingGuidelines

6.1 Arethereanypermanentstreamsand/orriversonthisorsurroundingblocks?

Yes*

No

6.2 Areanyofthestreamsorriversonthisblockessentialforcommunityfordrinkingwater?

Yes No If“yes”,aminimumbufferof50metersoneachsideofthewatercourseisrequired

6.3 ArethereanyClassIstreams[bedwidthisgreaterthan5m]onthisblock


6.4 ArethereanyClassIIstreams[bedwidthisgreaterthan1mandlessthan5m]onthisblock?


6.5 Arethereanycoastalshorelines,lakesorswampsonthisblock?

Yes No If“yes”,aminimumbufferof100metersisrequired


6.6

Arethereanyprotectedareas,wildlifemanagementareasorareasofculturalsignificancewithinorincloseproximity(100m)totheproposedplantingarea?

Yes

No

If“yes”aminimumbufferof100metresisrequired

*Streamsand/orriversshouldbeclearlyindicatedonthesketchpads

7.FoodGardens

CircleYesorNo

7.1 Doestheapplicantusethisblockforfoodgardens?

Yes No

7.2 Hasthesmallholderagreednottocreatenewgardensinforestedareasorcriticalhabitats?

Yes No

Iftheapplicanthasresponded“No”toquestion7.2,pleaseadvisetheapplicantthattheyareNOTELIGIBLEFORINFILLPLANTINGundertheSADPandSTOPtheapprovalprocesshere.Dateandsignsection11.

7.3 If7.1is“yes”complete7.3,otherwiseskipto8.

7.3a Doestheapplicanthaveanotherblockwhichcouldbeusedforfoodgardensofasimilarsize?

Yes No

7.3b Doestheapplicanthaveotherfoodgardensthatalreadyprovidefortheentirehouseholdsconsumptionneeds?

Yes No

Iftheapplicanthasresponded“No”toquestions7.3aand7.3b,pleaseadvisetheapplicantthattheyareNOTELIGIBLEFORINFILLPLANTINGundertheSADPandSTOPtheapprovalprocesshere.Dateandsignsection11.

7.4 IfyouansweredyestoQuestion7.3brieflydescribethisotherblockandwhereitislocated,andprovideevidenceasproofoflandownershipofthisblock


8.Biodiversity

CircleYesorNo

8.1 ArethereanythreatenedspeciesaslistedontheDECprovidedlistwhichcouldbeconsideredunderthreatfromthedevelopmentofthisapplicant’slandforoilpalm?

Yes No

8.2 IfyouansweredyestoQuestion8.1brieflydescribebelowthethreatenedspecies

Iftheansweris“Yes”toquestion8.1,pleaseadvisetheapplicantthattheyareNOTELIGIBLEFORINFILLPLANTINGundertheSADPandSTOPtheapprovalprocesshere.Dateandsignsection11.9.Roadworks CircleYesorNo

9.1 Isthisblocklocatedonaroadthatisingoodconditionandtrafficableinallseasons

Yes No

9.2 If9.1is“Yes”skiptosection10.If9.1is“No”,hasaroadworkstenderbeenissuedfortheroadunderSADP

Yes No

9.3 If9.2is“Yes”skiptosection10.If9.2is“No”,advisetheapplicantthattheapprovaltoproceedwithclearingtheinspectedblockwillnotbegivenunlessaroadworks.SHAofficersshouldskiptosection11andsignanddatethesection.Section11willneedtobesignedanddatedagainbytheEnvironmentofficeroncethefullscreeningprocessiscompletedatalaterdate.

10.Readiness

CircleYesorNo

10.1 Hastheapplicantagreedtopoisonallcoconutpalmswithintheplantableareainordertopreventganodermainfectionofoilpalms?

Yes No

10.2 HastheapplicantattendedanOPICgrowerworkshopandbeeninformedofthepositiveandnegativeimpactsofgrowingoilpalm?

Yes* No

*Evidenceneedstobeprovidedasproofofattendance


11.Approvaltoproceedwithclearingoftheblock

11.1HastheapplicantbeenapprovedtoclearandplanttheproposedblockbytherelevantSmallholderAffairsDepartment?

Yes No

11.2Hastheapplicantbeengrantedpermissiontoparticipateinnewplantingandproceedwithclearingtheinspectedblock?

Yes No

11.3IfYesin11.1and11.2,thetotalaretobeclearedis(hectares)

11.4 Iftheanswerto11.1is“yes”,sketchtheapprovedplantablearea,otherwiseskipto12.

Usingthegridbelowshadeintheapprovedplantablearea.Eachsquareisequivalentto0.1ha

or10mx10m.

N


SignaturesofProjectofficers

11.4SignatureofSHADevelopmentOfficer______________________________________

Date______________________________

11.5SignatureofOPICLandsOfficer_____________________________________

Date______________________________

11.6SignatureofSustainabilityDept.EnvironmentOfficer_____________________________________

Date_______________________________

11.7SignatureofHeadofSmallholderAffairs______________________________________

Date_______________________________

12.ClearingoftheBlock

12.1 Buffers

CircleYesorNo

12.1.1 Hastheapplicantretainedtherequiredbufferzoneswithinandaroundtheblockarea?

Yes No

12.1.2 Hastherebeenminimaldisturbance/damagetothebufferzonesduetotheclearingoftheblock?

Yes No

12.2 Ganoderma

CircleYesorNo

12.2.1 Hastheapplicantpoisonedallcoconutpalmswithintheplantableareainordertopreventganodermainfectionofoilpalms?

Yes No

12.3 Drainage

CircleYesorNo

12.3.1 Haveadequatedrainagechannelsbeenproperlyconstructedandlinedasappropriate?

Yes No


13. APPROVALTOPROCEEDWITHPLANTING

13.1Hastheapplicantbeengrantedpermissiontoproceedwithplanting

Yes No

13.2IfYesin13.1,thetotalareatobeplantedtooilpalmis(hectares)

13.3SIGNATUREOFSHADEVELOPMENTOFFICER……………………………………………………………………DATE:…../…./20…

13.4SIGNATUREOFOPICLANDSOFFICER……………………………………………………………………DATE:…../…./20…

13.5SIGNATUREOFHEADOFSMALLHOLDERAFFAIRS…………………………………………………………………….DATE:…./…./20…


Annex2ClanLandUseAgreement

CLANLANDUSEAGREEMENT(CLUA)TONEWBRITAINPALMOILLIMITED(NBPOL)ANDTHEOILPALMINDUSTRYCORPORATION.

Wetheundersigned,beingrepresentativeofthe............................................................Clanherebyacknowledge

that.....................................................................................................has/have1therightundernativelawandcustom

fortheperiodof.......................years/forthewholeofhis/her1lifetimetousethelandknown

as.......................................................andwhichhasbeenallocatedtheVillageOilPalmBlockNo....................of

the.................................................VillageOilPalmarea(andwhichismoreparticularlydescribedintheplanatthebackpage)forthepurposeofplantingoilpalmandwiththerighttoreceivetheproceedsofcrops,treesandpalmsgrown,livestockgrazedand/orbusinessonthedescribedlandprovidedthefollowingconditionsarecompliedwith.

(a)Theoccupantactuallyplantsatleast2haofoilpalm

(b)TheoccupantatalltimesmaintainsandappliesfertilisertotheseplantingstothestandardrequiredbyOPICandNBPOL.

(c)TheoccupantharvestregularlyandsellstheFFBinhis/herownnameandblocknumbertoHigaturu/NBPOL.

Iftheseconditionsarenotcompliedwith,wereservetherighttoreallocatethelandtoanotherclanmemberorpersonwhowillalsobeboundbetheseconditionsorfailingthatweagreethatNBPOLwillhavetherighttonominateacontractortoworktheblockuntilsuchtimeasanyandalloutstandingdebttoNBPOLisrepaidinfull.WefurtheragreethatduringthecurrencyoftheperiodwhiledebtforinputremainsinthefavourofNBPOLnomemberwillinterfereinanywaywhichwillaffectthesmoothrunningofthedevelopment.

Wecertifythatallmembersofthesaidclanagreetothisagreementandthatwearepersonsauthorisedbytheclantosignontheclans’behalf.

………………………………… ……………………………………. ……………………………………..

FullNameofClanLeader1 FullNameofClanLeader2 FullNameofClanLeader3

………………………………………… ……………………………………….. …………………………………………………..

Signature/MarkofClanLeader1 Signature/MarkofClanLeader2 Signature/MarkofClanLeader3

______________________ _______________________ ___________________________


FullNameofWitness1 FullNameofWitness2 FullNameofWitness3

……………………………………….. …………………………………………… ……………………………………………………

SignatureofWitness1 SignatureofWitness2 SignatureofWitness3

____/____/______ ____/____/_______ ____/____/_______

Date/Signed DateSigned DateSigned


Annex3InternalAuditForm

RSPO SAN Documentation ObjectiveEvidence Status

4.1.2 1.14 Amechanismtocheckconsistentimplementationofproceduresisinplace.

LastauditReportandQIPcopyonhand

4.1.3 1.6 Recordsformonitoringandactiontakenaremaintained

CorrectiveactionstakenonQIP,observationsclosedout,signedoffbyblockowner

RSPO SAN Legal ObjectiveEvidence Status

2.1.1 1.1 Evidenceofcompliancewithrelevantlegalrequirementsshallbeavailable.

Validleasetitle/CLUAavailable,orthetransmissionrecieptifintheprocessofchangingthenameonthetitle/CLUA.

2.3.1 1.1 ThereisaPlantationmapwhichindicatesboundaries,roads,infrastructure,productionplots,naturalecosystemsandabuttinglanduses

Amapoftheblock,eitherasketchmap,oronefromSHA,showingallfacilitiesi.e.housingarea,gardens,watersource,wastepits,ablutionareas,chemicalshedetc..

6.3.1 4.9 Thesystem,opentoallaffectedparties,shallresolvedisputesinaneffective,timelyandappropriatemanner,ensuringanonymityofcomplainantsandwhistleblowers,whererequested.[Major]

Nounresolved/pendingdisputesorgrievancestodowiththeblock.

5.1.1 1.4 Anenvironmentalimpactassessment(EIA)shallbedocumented.[Major]

CompliancetoallparametersasdocumentedwithinthePAF(inNewPlantingandReplantareas)

RSPO SAN Training ObjectiveEvidence Status

4.8.1 1.8 Aformaltrainingprogrammeshallbein-placethatcoversallaspectsoftheRSPOPrinciplesandCriteria,andthatincludesregularassessmentsoftrainingneedsanddocumentationoftheprogramme.

BlockownershaveattendedrelevanttrainingprogrammesrunbyNBPOL/OPRA/OPICaspertheirtrainingcalendars.ThisincludesFieldDays.

4.8.1 1.8 Aformaltrainingprogrammeshallbein-placethatcoversallaspectsoftheRSPOPrinciplesandCriteria,andthatincludesregularassessmentsoftrainingneedsanddocumentationoftheprogramme.

TraininghasbeenconductedbytheAreaSHASupervisorontheblockatleastonceayear.Confirmwithgrowerforattendance.

RSPO SAN Environmental ObjectiveEvidence Status

4.4.1 1.7 Animplementedwatermanagementplanshallbeinplace

Accesstocleanwaterfordrinking,cooking,washing,bathingetc..

4.1.1 1.7 Animplementedwatermanagementplanshallbeinplace

Nosignsofblatantdisregardtowastemanagementwhichmayhaveanimpactondownstreamusers.i.e.washingoutofchemicalcontainers,fertilizerbagsintowatercoursesetc.

5.3.3 3.37 Awastemanagementanddisposalplantoavoidorreducepollutionshallbedocumentedandimplemented.

Wastepitsforallwasteproducts,maintainedandsegregated.


4.4.2 3.18 Protectionofwatercoursesandwetlands,includingmaintainingandrestoringappropriateriparianandotherbufferzones(refertonationalbestpracticesandnationalguidelines)shallbedemonstrated.

Bufferzonesestablishedforrivers,streams,watercoursesontheblock.

4.3.2 3.8 Amanagementstrategyshallbeinplaceforplantingsonslopesaboveacertainlimit(thisneedstobesoilandclimatespecific)

Erosioncontrolpracticesareimplementedwhenplantingonslopes:terracingandfrondstackingtopreventrun-off,signsofgoodcovercrop

5.2.3 2.4 ThereshallbeaprogrammetoregularlyeducatetheworkforceaboutthestatusoftheseRTEspecies,andappropriatedisciplinarymeasuresshallbeinstigatedinaccordancewithcompanyrulesandnationallawifanyindividualworkingforthecompanyisfoundtocapture,harm,collectorkillthesespecies

NohuntingorkillingofRTEspecies,norshouldtheybekeptincaptivityontheblock.(RefertoRTEposterinbooklet)

5.2.2 2.11 Whererare,threatenedorendangered(RTE)species,orHCVs,arepresentoraffectedbyplantationormilloperations,appropriatemeasuresthatareexpectedtomaintainand/orenhancethemshallbeimplementedthroughamanagementplan.

Nocaptiveanimalsarekeptonfarms,exceptfornon-commercialpurposes.

5.5.1 3.9 Thereshallbenolandpreparationbyburning,otherthaninspecificsituationsasidentifiedinthe'GuidelinesfortheImplementationoftheASEANPolicyonZeroBurning'2003,orcomparableguidelinesinotherregions.

Zeroburningonblocks.

RSPO SAN PesticidesUse(ifdoingownSpraying) ObjectiveEvidence Status

4.6.2 3.25 Recordsofpesticideuseshallbeprovided RecordsofpesticideusagerecordedinSHbooklet

4.6.6 3.30 Storageofallpesticiesshallbeaccordingtorecognizedbestpractices.Allpesticidecontainersshallbeproperlydisposedofandnotusedforotherpurposes.

Pesticidesarestoredinalockedshed,withsignageputuptowarnofdangersandsafetyaspects.i.e.dangerousmaterialstorage,needtoweargloveswhenhandlingetc.

4.6.6 3.30 Storageofallpesticiesshallbeaccordingtorecognizedbestpractices.Allpesticidecontainersshallbeproperlydisposedofandnotusedforotherpurposes.

Pesticidecontainersarenotre-used/recycledforotherpurposes.i.e.storingdrinkingwater,fuelstorageetc..

4.6.10 3.33 Properdisposalofwastematerial,accordingtoproceduresthatareunderstoodbyworkersandmanagersshallbedemonstrated

Allpesticidescontainers/wastesaretriplepunchedanddisposedofinpesticidepit


4.6.5 1.8 Pesticidesshouldonlybehandled,usedorappliedbypersonswhohavecompletedthenecessarytrainingandshallalwaysbeappliedinaccordancewiththeproductlabel.Appropriatesafetyandapplicationequipmentshallbeprovidedandused.Allprecautionsattachedtotheproductsshallbeproperlyobserved,appliedandunderstoodbyworkers.

Pesticide/chemicalhandlershaveattendedChemicalHandler'sTrainingandhaveavalidcertificateonhand.

4.6.5 4.15 Pesticidesshouldonlybehandled,usedorappliedbypersonswhohavecompletedthenecessarytrainingandshallalwaysbeappliedinaccordancewiththeproductlabel.Appropriatesafetyandapplicationequipmentshallbeprovidedandused.Allprecautionsattachedtotheproductsshallbeproperlyobserved,appliedandunderstoodbyworkers.

AppropriatePPE(asperPPEguidelines)isbeingused

4.7.5 4.38 Accidentandemergencyprocedureshouldexistandbetestedat6monthsintervals.Instructionshouldbeclearlyunderstoodbyallworkers.Proceduresshouldbeavailableintheappropriatelanguageoftheworkforce.

SprayerhasreadandunderstandsemergencymeasuresinMSDSinbooklet.

4.6.11 4.36 Specificannualmedicalsurveillanceforpesticideoperators,anddocumentedactiontotreathealthrelatedconditions,shallbedemonstrated.

Allpesticidehandlersmustundergomedicalchecksevery6months.

4.7.2 4.17 Alloperationswherehealthandsafetyisanissuehavebeenriskassessedandproceduresandactionsaredocumentedandimplementedtoadresstheinfieldissues.Allprecautionattachedtoproductsshouldbeproperlyobservedandappliedtoworkers.

AllPPEusedbysprayermustbewashedseparately.Sprayermustalsowashdownwithsoapafterhandlingpesticides.

4.6.7 3.32 Applicationofpesticidesshallbebyprovenmethodsthatminimizeriskandimpacts.

Signsputuptoalert/warnneighbours,passersby,thatsprayingistakingplace.

4.6.12 4.18 Noworkwithpesticidesshallbeundertakenbypregnantorbreastfeedingwomen.

Nopesticidehandlingforpregnantorbreastfeedingwomen.

RSPO SAN BestManagementPractices ObjectiveEvidence Status

4.2.2 1.10 Recordsoffertilizerinputsshallbemaintained

Recordsofallfertilizerapplicationsarerecordedinbooklet.

4.6.3 3.26 Anyuseofpesticideshallbeminimisedaspartofaplan,andinaccordancewithIntegratedPestManagement(IPM)plans.Theroutineprophylacticuseofpesticidesisprohibitedunlessthereisalegalrequirementtodoso.

Weedinghasbeendone,withgoodcovercropgrowing.

4.2.1 1.7 Thereshallbeevidencethatgoodagriculturepractices,ascontainedinStandardOperatingProcedures(SOPs),arefollowedtomanagesoilfertilitytoalevelthatensuresoptimal

Slashingbetweenpalmshasbeendone.


andsustainedyield,wherepossible.

4.2.1 1.10 Thereshallbeevidencethatgoodagriculturepractices,ascontainedinStandardOperatingProcedures(SOPs),arefollowedtomanagesoilfertilitytoalevelthatensuresoptimalandsustainedyield,wherepossible.

Harvestingisbeingdoneasperschedule.Checkbooklet.


Frondstackingdonearoundpalmtreestominimiserunoff.

6.10.4 1.10 Agreedpaymentsshallbemadeinatimelymanner

Growersloginbookletfilledoutaccordingtoblockactivities.


GrowersFFBWeightSummarychartinbookletfilledout.

4.5.1 3.25 ImplementationofIntegratedPestManagement(IPM)plansshallbemonitored.

Seeifgrowerhasgoodunderstandingofrecognising,monitoringandmanagementofpests,asperOPRAtrainingsandinspections.

RSPO SAN Health&HygienePractices ObjectiveEvidence Status

6.7.1 4.6 Thereshallbedocumentaryevidencethatminimumagerequirementsaremet

Allschool-agedchildrenshouldbeinschoolduringschoolhours,andnotbefoundworkingontheblock.


Allrubbishandwastedisposedofinthewastepit.Norubbishleftlyingaroundthehousingarea.


Toiletsandwashingareasarenotsituatednearwatersourcesorlivingareaswhereitposesasafetyhazard

4.7.2 3.33 Chemicalcontainersarenotfoundinthecompound

NoemptyChemicalcontainersfound/beingreusedinthehousingarea.

Associated Smallholder Supply Chain Procedure

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