SCCS M2a May 2013
RSPO LEAD AUDITOR SERIES
RSPO SCC Standard
Core Requirements
(Part 1)
oilpalm.wildasia.org
Control of
Certified
Palm Oil
products in
Supply Chain
RSPO Supply Chain
Certification Standard
1. CERTIFICATION
OVERVIEW
2. BOOK & CLAIM
a. Overview & Guidelines
2011
3. GENERAL REQURIEMENTS
a. General for all facilities (inc.
CPO mills)
4. MODULAR REQUIREMENTS
a. SG and
b. MB
SCC Standard
1. Certification
Overview
SCS Objective
To physically manage
sustainable palm oil products; or
specifically administrate all
purchases and sales of certified
products
6
SCS Coverage
Trade of batches of crude palm
oil (CPO) or palm kernal oil
(PKO) and its derivatives,
products
6
Unit of Certification
“All operators who take legal ownership &
physically handle (including receipt into
storage tanks) RSPO certified sustainable oil
palm products”
This applies up and including the end product
manufacturer:
– First operator: Palm Oil Mill (BC, SG or MB only)
– Last Operator: End Product Manufacturer
Facility or parent company are RSPO members
RSPO member
Trademark & claims
controlled by RSPO rules
RSPO member
CPO mill SC during P&C audit
CPO Mill adopts SG/MB
models
RSPO member
SCCS certifies individual facilities
Non-conformances
• All non-conformances are considered
Major
• Where non-conformances are not
closed out within (3) months of the
audit, a full re-audit is required
For NC after certification…1 month to close.
Awarding Certification
CB submits to
RSPO and
updates E-trace
RSPO to upload
certificate on RSPO
website and E-trace
system within 1
working week
SCC Standard
2. Book & Claim
Objective
To broker direct payments
between supporters of
sustainable palm oil and CSPO
producers
6
Physical trade of palm oil
products continues …
CPO Mill is RSPO
Certified
Adopts Book & Claim
as its SCCS
certification model
Certified CPO (PKO)
registered into
Greenpalm Web
Database
Greenpalm Trademark is only
used in any market claims
Green Palm member
purchases GP certificates
from CPO Mill
General Requirements
• Must be a member of Greenpalm
• Only RSPO certified producers can sell
certificates (growers or smallholders)
• Supporters/End users can buy certificates
and claim to support sustainable palm oil.
Rules governed by RSPO/Greenpalm
• Sales transacted directly or off-market.
Buyers
•
•
•
•
1 GP certificate is equivalent to1 mt CPO
Sales no less than 25 GP certificates
Buyers cannot resell certificates
Greenpalm logo and claims must be approved
before use
• Olechemical derivatives, commonly used by home
care products, are guided by conversions
determined by the 2012 RSPO Rules for Home and
Personal Care Derivatives.
SCC Standard
3. General
Requirements
General Requirements
Consist of the following elements;
 5.2 Documented procedures
 5.3 Purchasing and goods in
 5.4 Outsourcing activities
 5.5 Sales & goods out
 5.6 Registration
 5.7 Training
 5.8 Claims
• Procedures for Implementation
• Records and reports to demonstrate
compliance
• Person-in-charge named & demonstrate
awareness of facility procedures
5.2 Documented Procedures
• Documentation purchases from suppliers indicate
IP/MB/MB
• E.g., purchase orders, contracts, material
specifications
• Checks by facility
• RSPO certified in origin
• SCC Certificates Valid
• Confirmation of trade (e.g., Shipping Announcement
and Shipping Confirmations in e-Trace)
• Mechanism/procedures for handling non-conformity
material/documents.
5.3 Purchasing and goods in
• Third-parties can be included in Facility's SCC
certification. (e.g., subcontractors for storage, transport)
• IF:
• Maintains legal ownership
• Enforced agreement facility-third parties (allow
unrestricted access of CBs)
• Documented control procedures
• Facility maintains names/contact details of all
contractors and inform CB of any updates
5.4 Outsourcing activities
• 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 or seller
• Loading/delivery date
• Certified product description (IP/MB/SG)
• Quantities delivered
• Transportation information
• SCCS Certificate Reference Number
5.5 Sales of Goods Out
• Registration in RSPO IT System:
• Legal/physical ownership of certified product
• All supply chain actors, up to final refinery
• MUST
• CPO and PKO Mills
• Refineries (note: final refinery confirms receipt of shipments
only)
• EXCLUDES
• Traders but not handling physical material (traceability
number must be included in shipment documentation)
• Operators after final refinery (retailers/end product
manufacturer)
5.6 Registration
• Defined training plan for implementation of the SCCS
requirements.
• Training to all staff to implement the SCCS
requirements.
• Training plan subject to review and updates.
• Maintain relevant training records.
5.7 Training
• Facility shall only make claims regarding use or support
of CSPO in compliance with RSPO Rules for Market
Claims.
5.8 Claims
Outsourcing services covered
by facility certification
Defined Person-in-Charge for
SCCS
Certificate
Number indicated
on outgoing
documents
Facility checks validity of
RSPO Certificates delivered
E-Trace updated when RSPO
product delivered by CPO mill
or arrives at final
manufacturer
SCC Standard
4. Modular
Requirements
Modular Requirements
• Facility must comply with General Requirements and at
least one of the modules.
• Several modules can be implemented simultaneously.
• CPO Mills must apply either SG or MB
• Modules:
•
•
•
•
•
•
•
A Identity Preserved
B Segregation
C Mass Balance
D CPO Mills (Segregation)
E CPO Mills (MB)
F Multi Site Certification
G Group Scheme NEW 2013
Covered in this section
SEGREGATION
A/B – IP & SG
Segregation ensures receipt,
processing and storage
maintains RSPO products is
physically separated
Source of Certified
Material is
identified
Outgoing
documentation
identifies Certified
product
Product has minimum 95%
RSPO certified product
• Follows same or less strict model of supplier (IP > SG >
MB > Uncertified)
Processing
• 100-95% of source is identifiable to:
• (a) a single mill and supply base (IP)
• (b) certified segregated material (SG)
• Demonstrate (inc. procedures & record keeping)
segregation:
• Prevents physical mixing (isolated)
• Transport and Storage
(note: handling non conformities or diversion of new crop
to mill due to mill shutdowns)
Processing
95% rule
• Objective is for 100% CSPO product
• Allows for minor contamination up to 5%
• Residual oils/products in storage tanks,
transport facilities
• Tanks/pipes/valves need to have
procedures to handle different SCCS
systems (SG vs MB)
• Records and reports for at least 5 years
• Documented proof that supply is traceable:
• (a) IP: to a single palm oil mill and supply
• (b) SG: certified segregated material
• Trade names shall be indicated on relevant documents
(e.g., purchase and sales contracts):
• [Product Name]/IP or Identity Preserved
• [Product Name]/IP or Segreagated
Record Keeping
SG Suppy Chain Yield Scheme
CPO
100 %
1,000 mt
PFAD
5%
50 mt
Refined Palm
94 %
940 mt
OLEIN
80 %
752 mt
Double Frac Olein (Super
Olein)
65 %
489 mt
Estimated only (+/- 2%)
Losses
1%
10 mt
STEARIN
20 %
188 mt
Palm Mid
Fraction
35 %
263 mt
Palm Mid Stearin
65 %
122 mt
Double Frac
Stearin
35 %
66 mt
MASS BALANCE
C - MB
Mixed
sources of
FFB (certified
and noncertified)
MB products are purchased
MB Yield Scheme used to
determine how much MB
products can be sold
Facility maintains an account
of volume of certified material
received and processed
Product has minimum 95%
RSPO certified product
• Follows same or less strict model of supplier (IP > SG >
MB > Uncertified)
Processing
• Records and reports for at least 5 years.
• Trade names shall be indicated on relevant documents
(e.g., purchase and sales contracts):
• [Product Name]/MB or Mass Balance
Record Keeping
• Quantity of physical RSPO mass balance material
inputs and outputs (volume or weight) at the physical
site are monitored on a real-time basis.
• Accounting of material ensures:
• Delivery of MB sales from positive stock
• Allows for short selling (sales ahead of actual
receipt)
• MB volume starts from date it enters the accounting
system and is deducted when it is allocated to outputs
supplied by the organisation.
• MB claims on outputs matches inputs as per yield
scheme.
Mass Balancing System
MB Suppy Chain Yield Scheme
• SG palm and palm kernel products can be used to
support a MB claim, without a physical/chemical link
between the SG product and the derivative sold as MB.
• However…SG palm oil products cannot be used to
offset mass balance claims on palm kernel products or
vice versa.
Mass Balancing Scheme
Palm Kernel MB Yield Scheme
100 mt palm kernels
45 mt palm kernel oil
15.8 mt PKO stearin
+
29.2 mt PKO olein
Companies that purchase segregated palm kernel
products can either:
• Apply segregated claim to all subsequent derivatives
…..OR
• Use it to offset sales of equal volumes of MB palm
kernel derivatives(not necessarily derived from the
segregated product acquired)
PK Mass Balancing Scheme
PK MB/SG Yield Scheme
Model
Yield Scheme
MB
100 mt PK --> 45 mt PKO -->
15.8 mt PKO Stearin + 29.2 PKO Olein
SG-a
Apply segregated claim to all derivatives
SG-b
Offset equal volumes of MB PK-derivatives
with SG PK-products
Example: Harmonisation
Refinery receives an order for 1,600 mt of CSPO MB Olein.
2,000 mt RBDPO is required to produce 1,6000 mt of Oleine.
It has in the RSPO account 5,000 mt MB CPO and 3,000 mt CPO in physical
stock.
Following should occur:
1. Physical stock is refined to produce 1,600 mt MB Oleine.
2. 2,000 mt is deducted from the RSPO account
3. 400 mt of Stearin is added to the RSPO account.
Sales can be affected anytime in the future
Example: Harmonisation
Refinery purchases 1,000 mt of
Refinery purchases 1,000 mt of MB PK.
CSPO MB.
Options for sales:
Options for sales:
1. MB 450 mt PKO; or
1. MB 1,000 mt Refined Palm Oil
2. MB 158 mt PKO Stearin and 292 mt
(RBDPO); or
PKO Olein
2. MB 800 mt Oleine and MB 200 mt
Stearin; or
3. MB 520 mt Double Frac Olein or
280 mt Palm Mid Fraction etc
PFAD, offset MB with equal volumes of SG
products
All other derivatives, offset MB with equal volumes
of SG products
Example: Combined
1. 50 mt of SG + 10 mt of MB = 60 mt MB
2. 10 mt of non CSPO + 10 mt of SG = 10 mt MB
3. 10 mt of MB + 13 mt MB = 23 mt MB
4. 20 mt of MB + 10 mt of non CSPO = 20 mt of MB
Example: Substitution
1. 1,000 mt SG/IP CPO = 1,000 mt MB of any fractions
2. 1,000 mt SG/IP PKO = 1,000 mt MB of any fractions
(e.g., PFAD, etc)
BUT cannot buy SG CPO for MB PK fractions or vice versa
SCC Standard
Conclusion
Conclusion
• The SCCS certificate covers all operators who legally
own or physically handle RSPO certified products.
• SCCS requirements focus on handling, accounting
and communication of use of certified products.
• Three supply chain models are covered:
• Book & Claim
• Segregated and Identity Preserve
• Mass Balance
Questions?
E: advisory@wildasia.org
W: oilpalm.wildasia.org