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RSPO SCC StandardCPO Mills & Multi Sites(Part 2)

RSPO LEAD AUDITOR SERIES

SCCS M2b May 2013

RSPO Supply Chain Certification

Standard

2011

1. CPO Millsa.SG Module b.MB Module

2. MULTI-SITE CERTIFICATIONa.System Requirementsb.Standard Requirements

SCC StandardSCC Standard1. CPO Mills1. CPO Mills

CPO Mills

• CPO SCCS will be determined during a P&C Audit. The

following needs to be verified:• Volumes of FFB inputs and volumes of RSPO sales

outputs• Estimated production of CPO/PK and recorded in

certificate. Certified volume cannot exceed this.

Subsequent ASA will update actual figures.• Mill meets registration & reporting requirements as per

UTZ or Greenpalm and e-Trace.

D – SG CPO Mill

SEGREGATION

Documented systems in place to control mixing

Segregation ensures receipt, processing and storage maintains RSPO products is physically separated

Source of Certified Material is identified & verified

Outgoing documentation identifies Certified product, e.g.,CPO SG Certificate XXXXXX

• Procedures for receiving and processing certified and non-certified FFBs.

Documented Procedures

• Verify & document volumes of certified and non-certified FFB received.

• Inform CB immediately if there is an overproduction.

Purchasing and Goods In

• Records and reports for at least 5 years• Record and balance all receipts of RSPO certified FFB

and deliveries of CPO, PKO and palm kernel meal on a three-monthly basis.

• Trade names shall be indicated on relevant documents (e.g., purchase and sales contracts): • [Product Name]/SG or Segregated

Record Keeping

• Sales invoices or relevant documents (e.g. delivery notes, shipping documents, etc) includes sufficient information on RSPO certified palm oil products delivered.• Names/Contacts of buyer• Date invoice issued• Certified product description (MB/SG)• Quantities delivered• Reference to Transportation information

Sales of Goods Out

• 100-95% of source is identifiable to only certified segregated source.

• Demonstrate (inc. procedures & record keeping) segregation:• Prevents physical mixing (isolated)• Transport and Storage

Processing

• Mill may outsource to an independent PK crushing mill and does not need to be independently certified. But:• Crusher conforms to SG requirements;• Crusher is included in an enforceable agreement.

Processing

E – MB CPO Mill

MASS BALANCE

Accounting System in place to monitor Certified volumes received and Certified products processed only.

Facilities utilizes certified and non-certified materials in the process. There is no segregation.

Source of Certified Material is identified & verified

Outgoing documentation identifies Certified product, e.g.,CPO MB Certificate XXXXXX

Any physical sales of certified products are deducted from the Accounting System only.

• Procedures for receiving and processing certified and non-certified FFBs.

Documented Procedures

• Verify & document volumes of certified and non-certified FFB received.

• Inform CB immediately if there is an overproduction.

Purchasing and Goods In

• All volumes of products delivered shall be deducted from material accounting system based on the RSPO conversion ratio.

• Facility can only deliver MB sales from positive stock and is allowed to short sell.

Record Keeping

• Records and reports for at least 5 years• Record and balance all receipts of RSPO certified FFB

and deliveries of CPO, PKO and palm kernel meal on a three-monthly basis.

• Trade names shall be indicated on relevant documents (e.g., purchase and sales contracts): • [Product Name]/MB or Mass Balance

Record Keeping

• Mill may outsource to an independent PK crushing mill and does not need to be independently certified. But:• Crusher conforms to SG requirements;• Crusher is included in an enforceable agreement.

Processing

• Sales invoices or relevant documents (e.g. delivery notes, shipping documents, etc) includes sufficient information on RSPO certified palm oil products delivered.• Names/Contacts of buyer• Date invoice issued• Certified product description (MB/SG)• Quantities delivered• Reference to Transportation information

Sales of Goods Out

MB Suppy Chain Yield Scheme

New

SCC StandardSCC Standard2. Multi-site 2. Multi-site CertificationCertification

RSPO Certificate issued to Central Office

Central Office manages SCCS requirements

ICS defines how SCCS will ensure compliance

Internal Audits at least 1/annum

System Requirements

Multi-site Certification

The SCCS System defines the following elements;

Eligibility Criteria for Operation Certification Units Audit Sampling

Eligibility

• All operations owned by same company• Centralised Office (CO) shall defined rules for

eligibility of all participating sites• Multi-site audits can be across borders, as

long as SCCS controlled by CO

Criteria for Operation

• SCC System managed centrally (CO)• All facilities included = contract to CO• CO manages a ICS• CO elects a Management Rep• CO is audited annually

Criteria for Operation

• Operations grouped into sets• Milling, Refining, Transport & Distribution, Processing,

Production, Blending, Outsourcing (tanks, etc)

Certification

• Certificate issued to CO and relevant

companies/operations listed• Certificate valid for 5 years with annual

surveillance

Audit Principles• Audits will consider Sets of facilities with

common management systems• Audit rigor will be determined by an audit risk

assessment

Initial Assessment•CO + 0.8 x [Each Sets] where each Set = rounded up (√ total no of sites)

Surveillance•CO + 0.6 x [Each Sets] where each Set = rounded up (√ total no of sites)

Re-Certification•CO + 0.8 x [Each Sets] where each Set = rounded up (√ total no of sites)

Audit Formula

Initial Assessment:

1 CO = once per year

4 mills = 0.8 x √ 4 = 1.6 = 2

10 refineries = 0.8 x √ 10 = 2.5 = 3

27 manufacturers = 0.8 x √ 27 = 4.2 = 4

i.e., total of 10 audits per annum

Example 1: Audit Formula

Standard Requirements

Multi-site Certification

The SCCS Standard defines the following elements;

Scope Responsibilities Training Record Keeping Internal Audits Claims

• The Central Office needs to define:• Geographic area, the number & identify of facilities• Supply Chain model used and types of operations

covered by the model

Note: MB accounting can only be done at the facility level

Scope

• Operational units are part of the Central Office (CO)• CO to justify any sets or groupings of facilities• RSPO SCCS system:

• Covered by an internal ICS• CO administers the ICS• CO defines a management rep to oversee

compliance• CO defines a corrective action procedure where non

compliance is detected• CO has the authority to remove participating sites

from the RSPO SCCS scope (inc. RSPO CB findings)

Responsibilities

• ICS shall define training scope, requirements and implementation

Training

• CO maintains all records and reporting• ICS defines which common management documents

are applicable for all units• ICS defines which specific documents are required to

demonstrate compliance• ICS/CO maintains documents for min. 5 years

Record Keeping

• CO at least one internal audit of each site• (ICS) non conformance results in an issued corrective

action request• Actions taken to close non conformance shall be made

available• Outcomes of internal audit programme shall be

reviewed by top management at least annually

Internal Audits

• ICS shall be responsible for ensuring all use by represented sites comply to the rules for market communication & claims.

Claims

SCC StandardSCC StandardConclusionConclusion

Conclusion

• CPO Mills must adopt either SG or MB supply

chain models. Their certification requirement

is currently included within the scope of the

Mill’s RSPO production certificate.• Multi-site certification is applicable generally

for large multinational companies, operating

many facilities.

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