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Palmeras del Ecuador S.A.

Shushufindi, Km. 16, Via Limon Cocha, Ecuador

Pedro Roberto Cerrate Morales

19/01/2018

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Contents.

1. Certified company details

1.1 Company contacts
1.2 Facilities included in the scope of the audit
1.3 Contact details of each the management representative

2. Summary of the report and Scope of the audit

2.1 The version of the RSPO supply chain certification systems that the operation
was audited against
2.2 Summary report including a brief description of the scope of certification
2.3 Description of the scope of the audit including the supply chain model(s) used
2.4 Multi Sites. Justification and explanation of the sampling formulae used
2.5 Description of the organizational management systems.

3. RSPO Certified volumes

3.1 For the mill
3.2 For the refinery, manufacturer, etc.

4. RSPO Rules on Market Communications and Claims

5. Certificate

6. Background to the report

6.1 IBD - The Certification Body
6.2 Audit Team
6.3 Audit Agenda
6.4 The certification decision management team
6.5 Previous Assessments

7. Closing meeting

8. Non compliance register

9. Lead Auditor Recommendations for the RSPO Supply Chain Certification.

10.Comments for next audit.

11. Formal sign off of audit findings

12. Major non-compliances follow-up actions

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1. CERTIFIED COMPANY DETAILS.

1.1. Company contacts.
Company name Palmeras del Ecuadro S.A.
Principle Contact person Patricia Tobar
Shushufindi, Km. 16, Via Limon Cocha, Ecuador
Business address

Office telephone ----

Mobile telephone +593 99 902 1104
Fax -----
e-mail ptobar@danec.com
Web site www.danec.com
RSPO membership number 2-0143-10-000-00 Date of approval March 22nd 2010
RSPO membership type (inform Ordinary member / Affiliate member / Supply Chain Associate member)
IBD accreditation as an RSPO certification Body
Certificate number RSPO-ACC-020 Date of accreditation November 4th, 2014
1.2. Facilities included in the scope of the audit.
Name of facility: Location address: Supply chain model:
Palmeras del Ecuador S.A. Shushufindi, Km. 16, Via Limon Cocha, Ecuador MB
1.3. Contact details of each the management representative responsible for overseeing the
certification process for each facility if different to that shown in table 1 above.
Name of facility Contact name Office phone e-mail
Palmeras del Ecuardo S.A. Patricia Tobar ptobar@danec.com

2. SUMMARY OF THE REPORT AND SCOPE OF THE AUDIT.

2.1. The version of the RSPO supply chain certification systems that the operation was audited against:
RSPO Supply Chain Certification Systems and RSPO Supply Chain Certification Standard. (Select November 2014
or June 2017).

2.2. Summary report including a brief description of the scope of certification.

The mill produces CPO and CPKO. Danec is an Palm Oil Processors and/or Traders for the RSPO
since March 10, 2010 under membership number 2-0143-10-000-00
2.3. Description of the scope of the audit including the supply chain model(s) used.
Name of facility: Scope and supply chain model.
Palmeras del Ecuador S.A. Production and sales of Palm Kernel Oil, Module C – Mass Balance (MB)

2.4. Multi Sites. Justification and explanation of the sampling formulae used.
N/A
2.5. Description of the organizational management systems.
Including organizations, management and operational systems to ensure compliance with the RSPO Supply
Chain Certification Systems and Standards as detailed above.

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There is an integrated mill where Palm Kernel Oil and Palm Crude Oil are produce. The mill will work under Mass
Balance model.

The mill Processed PK, and produced CPKO:

Palm Kernel 2016 CPKO 2016

5,168.77 TM 1,919.64 TM

Palm Kernel 2017 CPKO 2017

6,529.43 TM 2,231.44 TM

List of Documents:
Code Document Date
SCP01000 Procedimiento para 2014-08-05
la elaboración de
documentos
(Procedure for the
preparation of
documents)
SCP02000 Procedimiento para 2014-07-28
el control de
documentos, datos
y codificación
(Procedure for the
control of
documents, data
and coding)
SCP06000 Procedimiento de 2017-02-16
auditorías de
calidad (Quality
audit procedure)
SCP07000 Procedimiento de 2017-12-18
Atención de PQR
de los grupos de
interés
identificados (PQR
Attention
Procedure of the
identified interest
groups)
SCP07I01 Instructivo de 2017-12-18
consulta y
comunicación con
las partes
interesadas
(Instructions for
consultation and
communication
with interested
parties)
SCP08000 Procedimiento de 2015-12-28
acciones curativas,
correctivas y
preventivas
(Procedure of
curative, corrective
and preventive
actions)
SCP10000 Procedimiento de 2015-11-30
tratamiento de
quejas de clientes:
quejas de
producto, quejas
de servicio
(Procedure for
handling customer
complaints:
product
complaints, service
complaints)

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SCP20000 Procedimiento de 2015-10-23

identificación y
trazabilidad
(Identification and
traceability
procedure)
SCP22000 Procedimiento de 2017-12-13
Cadena de
Suministro RSPO
(RSPO Supply
Chain Procedure)
AQP04000 Procedimiento de 2017-06-09
compra de fruta de
palma aceitera
(Purchase
procedure for oil
palm fruit)
CMP01000 Procedimiento de 2014-09-09
venta de productos
y recaudación
(Procedures for the
sale of products
and collection)
GDP04000 Procedimiento para 2015-10-23
la revisión del
sistema de calidad
(Procedure for
quality system
review)
PTP01000 Procedimiento 2015-10-06
recepción,
almacenamiento y
entrega de
producto
terminado
(Procedure
reception, storage
and delivery of
finished product)
2.6 Nonconformances, corrective actions, and the date of closure of NCs.
N/A
3. RSPO CERTIFIED VOLUMES.
3.1. For the mill
Volume produced over the specified period:
Facility CPO mt PKO mt Specified 12 month period
N/A Palmeras del Ecuador S.A. has not ye
made sales of certified pal oil

Volume sold to each buyer over the specified period:

Name of buyer CPO mt PKO mt Specified 12 month period
N/A Palmeras del Ecuador S.A. has not ye
made sales of certified pal oil

3.2. For the refinery, manufacturer, etc.

Raw material purchased/received:
RSPO certificate eTrace
Supplier Product name/code Volume (mt)
number number
N/A

Palm oil products sold:

RSPO certificate eTrace
Buyer Product name/code Volume (mt)
number number
N/A

4. RSPO RULES ON MARKET COMMUNICATIONS AND CLAIMS

Findings: Comments: Compliance

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Claims & Trademark use

N/A The RSPO Mark is not used. The company Yes
will use the Brand, Communications and
Claims Handling Guide, if applicable

5. CERTIFICATE
Name of Client Palmeras del Ecuador S.A.
Date of first certification 14/08/2018
Certificate number CRSPO9719-03
Certificate start date 14/08/2018
Certificate end date 13/08/2023
Issued by IBD CERTIFICAÇÕES LTDA
Address Rua Amando de Barros, 2275 - CEP: 18.602.150 –
Botucatu – SP – Brazil
Telephone 0055 14 3811-9800
Email ibd@ibd.com.br
Website www.ibd.com.br
Scope
Production and sales of Palm Kernel Oil
Type of certification Single site: Yes Multi site: Yes
Name of facilities included in the scope of the certificate
Name Location
Palmeras del Ecuador S.A. Shushufindi, Km. 16, Via Limon Cocha, Ecuador

6. BACKGROUND TO THE REPORT.

6.1. 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 17065 (European market regulation CE 889/07), Demeter
(international market), USDA/NOP (North-American market), and SISORG (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
Fair Trade, RSPO, SAN, UTZ, 4C and UEBT 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, in more
than 20 countries.

For more information regarding IBD, 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).

6.2. Audit Team

Lead auditor Pedro Roberto Cerrate Morales
Audit team
6.3. Audit Agenda
Date Time Location Program* Auditor(s)
19/01 08:30 Oficinas Opening meeting PC

19/01 09:00 Oficina Revisión de la documentacióon de la PC

cadena de Custodia del Modelo MB

19/01 11:00 Oficina Entrevistas al personal y recorrido por PC

refineria

19/01 14:00 Almuerzo

19/01 15:10 Oficina Revisión Documental y preparación PC

reunión cierre

19/01 16:00 Oficina Closing meeting PC

*Including items inspected and people consulted.

6.4. The certification decision management team.
Name Position

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Leonardo Gomes RSPO Manager

6.5. Previous Assessments (if applicable):

Summary of previous certification assessments and conclusion, with recommendations or non-conformances.
N/A
7. CLOSING MEETING.
The purpose of the closing meeting is to allow the audit team to present their findings to the client, to agree dates
for the completion of any corrective action required, and to establish any subsequent follow up action. The meeting
is chaired by the audit team leader and wherever possible involve the same people who were present at the opening
meeting.
Participants of the closing meeting:
Name Position
Antonio Alcidiez Investigation and development
Marcelo Rodriguez Production
Patricio Beltran Mill
Chiaki takatsu Quality manager
Patricia Tobar Manager of Integrated Management Systems
Certified status at this time.
It is very important for the client to understand that until they receive written confirmation of their RSPO Supply Chain
certification registration from the IBD certifier (see 2c below) and its expiry date that they are not certified and cannot
make any claims concerning certification.

Actions that a need to be completed prior before certification can proceed.

a. If any non-compliance was noted, then a certification decision is not possible until the client has taken steps to
close out the non-compliances noted in the certification checklist. See also 6 below.
b. If full compliance was noted during the audit, the next step is for the checklist and public summary plus any
associated documentation, to be sent to the IBD RSPO SCC Certifier by the lead auditor. The certifier will review
the documents and may refer back to either the lead auditor or to the client for further information or clarification.
c. Once the certifier is satisfied, a positive certification will be made and a certificate is awarded and sent to the
client. The RSPO is also notified within 10 days of the issuing of the certificate.
Audit findings.
The findings of the RSPO checklist and the certification report were presented to the client.
Details of any further information supplied by the client at this stage:
No further information was given.
Confidentiality.
IBD auditors will not discuss or reveal any of the confidential information seen during the audit to any third party. Any
public summary of the main assessment will be approved by the client prior to publication.
Non-compliance.
The client is made aware that:
 All non-compliance observed during an audit shall be classified as ‘major’ since all requirements for Supply Chain
certification have to be met before granting certification.
 All non- compliances shall be addressed satisfactorily by the client before certification may be granted. If non-
compliances are not addressed within three (3) months of the audit, a full re-audit shall be required.
 IBD shall assess the effectiveness of the corrective and/or preventive actions taken before closing out the non-
compliance.
 Non- compliances raised after the certification are serious (i.e. must be considered as a major) and the integrity
of the RSPO Supply Chain Certification is at risk. . A maximum of one month is to be given to the certified client to
satisfactorily address the non- compliance. Should the non- compliance not be addressed within the one month
maximum timeframe, a suspension or withdrawal of the certificate and a full re-audit may be necessary.
 Where objective evidence indicates that there has been a demonstrable breakdown in the supply chain caused by
the certified client’s actions or inactions, and that oil palm products have been or are about to be shipped which
are falsely identified as RSPO certified product then immediate action will be taken by IBD, and the RSPO Supply
Chain certification should be suspended until such time that it has been addressed.
 If certification is suspended or removed, for example on the basis of lack of effective corrective actions, the client
shall inform their supply chain customers immediately. If certification is granted subsequently then this can be
communicated to the customer group.

8. NON COMPLIANCE REGISTER.

Verification of previous assessment non-compliances
Non-compliance N/A
Date raised
Reference of standard
Correction at this audit Full
Partial
Not Corrected

New non-compliances raised at this audit

NC number N/A
Date raised

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Reference of standard
Standard requirement
Evidence of non-
compliance
Date of closing

9. LEAD AUDITOR RECOMMENDATIONS FOR THE RSPO SUPPLY CHAIN CERTIFICATION.

Grant/ Renewal/ Extension*
Maintenance*
Suspension
Refuse / Withdrawal Certificate

Justification for the No non compliances were found during the presente audit. The auditor
recommendation: recommends the certification

OBS: The final decision whether the company will be granted with the RSPO Supply Chain Certification
or not, shall rely upon the certification body, after reviewing the audit documentation and taking in
account the lead auditor’s recommendation.
* Grant / Renewal / Extension / Maintenance, in the case of open nonconformities, assuming that the nonconformities
will be cleared as agreed within one month from IBD decision.

10. COMMENTS FOR NEXT AUDIT.

N/A

11. FORMAL SIGN OFF OF AUDIT FINDINGS.

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 document

I also confirm:
 Acceptance of liability in execution of the instructions given in the document and at the closing meeting.
 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 the formal record of the closing meeting is accurate and that all agenda items were covered by the lead
auditor.
 I understand the implications of non-compliance.
Name Patricia Tobar
Position Gerente de Sistemas Integrados de Gestión
Signature

Signed 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.
Name Pedro Roberto Cerrate Morales
Position Lead Auditor
Signature

Date 24 de abril de 2018

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12. 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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