1. oilpalm.wildasia.org RSPO SCC Standard Group Certification (Part 3) RSPO LEAD AUDITOR SERIES SCCS M2c May 2013

2. Control of Certified Palm Oil products in Supply Chain

3. RSPO Supply Chain Certification Standard 2011 1. GROUP SCHEME Module G a.RSPO Membership b.Group membership Criteria

4. SCCS for Groups 1. System Requirements

5. Overview Relevant sections of the RSPO SCC System Section 4 - Accreditation Section 5 - Certification Process Modification to SCCS Report & Certificate

6. Group Scheme Certification The modified SCCS System defines the following elements;  Eligibility  Criteria for Operation  Certification Units  Risk Analysis  Audit Sampling & Surveillances  New Members  Audits  Certificates

7. Eligibility A Group needs to be a member of the RSPO (Supply Chain Associate or Ordinary Member) All members (individuals or companies) are independently owned Uses up to 500 mT of oil palm products per annum Members can be in different countries

8. Criteria for Operation All members have a contractual relationship with the Group All members are required to meet the SCCS requirements The Group manages an Internal Control System (ICS) which ensures members conformance to the SCCS The Group appoints a Group Manager

9. Criteria for Operation All members must adopt the supply chain systems at their facility levels only Only options for Segregated or Mass Balance systems can be used

10. Audit Procedures CB shall define in their documented auditing procedures a Risk Analysis System: determine level of sampling required level of stratification required Risk must consider: Homogeneity of the group (e.g., similar management system/processes) Types of products processed Relationship between Group-Group Members (independent vs biased)

11. Audit Sampling At least 25% of all samples chosen at random Lowest risk category defined shall follow the audit formula prescribed (see below) All members must be audited within the 5 year period

12. Compliance audits and renewals: The Group ICS and samples of members Minimum (low risk): rounded up (√ total no of members) Surveillance The Group ICS and samples of members Minimum (low risk): rounded up 0.6 x (√ total no of members) New Members All new members must be identified as a separate audit group At least 25% of sites selected randomly Audit Formula

13. Initial Assessment: Group with 50 members, categorized by CB as low risk Number of min audits = √ (50 + 1Group Manager) = √51 =7.14 = 8 Of these, 25% must be randomly selected (i.e., 2) i.e., total of 8 audits per annum including Group Manager Example 1: Audit Formula

14. Year 2 Assessment: Group with 50 members and 10 new members (all low risk) Number of min audits = 0.6 √ (50 + 1Group Manager) = 0.6√51 =0.6 X 7.14 = 4.28 = 5 Of these, 25% must be randomly selected (i.e., 1.75 or 2) and Number of min audits = √ 10 = 3.16 = 3 Of these, 25% must be randomly selected (i.e., 1) i.e., total of 8 audits for that year Example 2: Audit Formula

15. Audit Procedures CB shall define in their documented auditing procedures for Group or Member Failure. Failure results in corrective actions, suspension or expulsions from the Group. E.g., Group Failure: Failure to meet ICS requirements (administration, record-keeping, use of RSPO trademark) Failure to comply with requirements of the RSPO CB Failure of all above, by a number of group members

16. Audit Procedures Failure results in corrective actions, suspension or expulsions from the Group. E.g., Member Failure: Failure to meet RSPO SCCS requirement (administration, record-keeping, use of RSPO trademark) Serious or persistent failure to comply with requirements of the RSPO CB

17. Certification Certificate issued to Group Entity and members audited (audited or all members at time of audit) Certificate valid for 5 years with annual surveillance

18. SCCS for Groups 2. Standard Requirements

19. Overview Group Scheme is made up of independent organisations that agree to abide by the Group membership rules. The rules ensure that members comply to the RSPO SCCS requirements. Group Manager is responsible for managing members compliance, enforced through an internal control system (ICS). Group members must apply either SG or MB models at the facility level.

20. Membership requirements

21. Independent legal entity (org/idv) 500 mT of palm oil use per annum. If exceeds, to leave at anniversary of membership. Membership is voluntary but formally agrees to join the group. Agrees to meet RSPO SCCS requirements of given models. Use of RSPO Certificate Number & Unique Identifier on PO, Delivery Note, Sales Invoices and transport- documentation. Group Membership Requirements

22. Full authority to manage the group Defines the geographic scope of the group Payment of fees to the RSPO Conditions and requests for corrective actions are implemented Authority to remove members Define, manage and update Group Rules, Polices and ICS Group Manager Requirements

23. Sufficient resources to run and manage the group Documented system Mission & Objectives Policies & Procedures (operational management) Decision Making Rules of the Group Group Management structure Group Requirements

24. Understand requirements of the SCCS No conflict of interest Communicate in relevant language/English Competent to conduct Internal Audits, as per SCCS requirements Group Manager/Team Requirements

25. Documentation & monitoring of individual membership status, production processes and relevant aspects of SCCS Maximum number of members the system supports Clear policies/procedures for communication between Group Manager-Members. Group Management Requirements

26. Management Procedures

27. Documented roles/responsibilities for Group Manager Procedures for new members after certification audits Procedures for training/information (new and existing members) Procedure for annual internal audits (including new members) Procedure for updates to the group (including membership) Procedures for members that exceed 500 mT Procedures for members sanctions, corrective action requests, suspension, etc Membership

28. Procedures training/information (new and existing members) Stratification of group members annual internal audits (including new members) updates to the group (including membership) members that exceed 500 mT Use of RSPO logo/trademark Central database of movements in/out of RSPO products by member Procedures

29. Members supplied with copies or explained: RSPO SCCS Rules of Market Communication & Claims Certification Process Group Manager needs and rights for CB to access group member’s documentation/site SCCS Public Documentation Use of the SCC Certificate Number Obligations of Group membership Cost associated with the group membership Members

30. Group Record

31. All group records maintained for 5 years Central records include: List of names and addresses Full contact details Date of membership Sub-code assigned to follow group certificate number Details of all sites (including multi-sites) Membership date signed Date leaving the group (and why) Membership

32. Central records include: Summary of all RSPO products purchased.sold SC models used Projected use of oil palm (mT/annum) Gross quantity of RSPO certified products used (mT/annum) Uses of RSPO Logo and Trademark Palm Products

33. Central records include: Audits conducted prior to acceptance Annual monitoring records Corrective Action requests RSPO (member) procedure manual Compliance

34. SCCS for Groups Conclusion

35. Conclusion Group Certification is an option for small and medium enterprises or individuals. Their maximum use of palm oil does not exceed 500 mT per annum. Members are governed by the Group rules or internal control system. These rules ensure that members are compliant to the SCCS requirements.

36. Questions? E: advisory@wildasia.org W: oilpalm.wildasia.org