New Planting Procedure - Summary of Integrated Management Plan

NPP Reference Number
Country of the NPP Submission:
RSPO Membership Number
Reference to the management
unit management planMX008

México1-0416-22-000-00

Industrias Oleopalma S.A. de C.V. NPP_Oleopalma_15_05_2023_ENG Assesments
and management plans summaryName(s) of estate(s) covered Industrias Oleopalma S.A. de C.V.
under this management plan:
Guidance Notes:
This summary management plan shall indicate at a minimum but not be limited to the following:● Key findings of the various assessments (e.g., potential minor environment and/or social risk requiring mitigation
actions; total conservation areas).
● Key mitigation and monitoring regime, covering both the environmental and social aspects.
● Evidence of FPIC and key agreements with local communities (if any).
● An action plan describing operational actions consequent to the findings of the various assessments, referencing
the grower’s relevant operational procedures.
● Designation of the management team and responsible person for the implementation.
1SEIA
Table 22 shows the impacts obtained through the participatory dialogue stage between the consulting team and therepresentatives communities’ attendants to the consultation process, there the different social aspects
acknowledged and showing greater significance among the actors and the communities are specified, whichconverge in the presence of impacts as focused on social, economic, and cultural conditions in the territory.
In addition, Table 23 shows the relationship and communication as an impact identified between the Balancan
council and the INDUSTRIAS OLEOPALMA S.A DE C.V., in relation to the establishment of new oil palm
plantations, to determine strategies between the parties in favor of the population.

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HCV areas and HCS forests

he identification and evaluation of the threats to the HCV areas was carried out considering the present effects on
the High Conservation Values identified due to the environmental conditions and the anthropic activities that takeplace there. These threats were identified considering the time scale in which they occur, finding present threats (inthe AOII) and potential ones that come from the proposed activities (new oil palm plantations) or from externalactivities.
All threats were identified and classified based on the results obtained from the characterization process of thestudy areas, as well as the findings of the stakeholder consultation. Likewise, the threats proposed by theevaluation team were compiled based on their experience in other evaluations related to the agricultural sector andspecific observations were included considering the field phase. For the above, the guide developed by theZoological Society of London was taken as a guide. (Zrust, y otros, 2013) for monitoring threats in areas with High
Conservation Values; The threats identified for each of the HCVs present are shown in the Table 34.

To guarantee the maintenance of the identified HCVs, a series of management recommendations are suggested
aimed at the protection, conservation and improvement of the significant and critical environmental and social
values present within the evaluated areas. These recommendations consider the environmental and social
characteristics of the study area, the results of the consultation with interested parties and the internal and external
threats identified for each HCV.
For HCV 1 and HCV 3 areas considered present in the context of the assessment due to the identification ofvegetation cover with the capacity to host significant concentrations of biological diversity, mainly RAP, endemic ormigratory species, as well as nationally threatened ecosystems. A buffer strip of 20 meters is proposed aroundthese areas, defined according to the guidelines of (Bentrup, 2008) whose main objective is to protect theconcentrations of biological diversity characteristic of these areas, favoring the flows of matter and energy with thesurfaces. surrounding natural resources, especially considering the current threats to this environmental value interms of loss of species and of the ecosystems and habitats in which they reside.
For the areas considered HCV 4, the proposed management corresponds to a water protection round of about
100-meter around the Usumacinta River, as well as the protection and conservation of tulares and bodies of waterassociated with this coverage. In said round of protection, management must be aimed at conserving the areas offorest cover that are within them and starting a reforestation process with native species in order to guarantee theprovision of associated ecosystem services.
Finally, for all HCV areas considered to be present in the Management Units, the delimitation of a 10m differentiatedmanagement strip is proposed as an additional management area to the previously mentioned buffer strips andwater protection rounds, in order to generate a transition zone between the cultivation of oil palm and themanagement and HCV areas, preventing activities related to the development of the crop from negatively impacting
the environmental and social values that are sought to be protected and improved.
The management and monitoring recommendations for these HCV areas are shown in Table 35.

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Stakeholder and local people engagement (FPIC process)Consultation to interested parties was oriented under the principles of transparency and respect for freeparticipation and opinion, so it was necessary for the interested parties to approve to take photographs, attendance
record (only for adults), and recording of opinions by BioAp SAS consulting team. In addition, from theimplementation of the participatory mapping it is identified that the communities have concerns regarding palm
crops and their possible effects on the ecosystems present in the area, therefore, they want that according to theresults of the studies apply actions to mitigate harmful effects on the environment, as well as this can contribute to
the improvement of payment conditions in labor in the area.
On the other hand, the commitment to the participants of the socialization and feedback of the results of the HCVand EISA studies as well as the actions proposed for continuous improvement is verified, this as part of theestablishment of a joint work agenda with the parties. interested

Table 19 presents the summary of the participants for the consultation process developed in the field phase, where
the number of participants, applied methodological tool and photographic record are specified. In total, theconsulting team had 84 participants in the activities carried out; among them: Communities of the area of influenceand government entities.

The consultation of interested parties was carried out with a large part of the social actors as established in theagreements defined during the previous approaches and call. However, the meeting with the representation of theEmiliano Zapata council could not take place due to the availability of time of the representatives of the entity;
Likewise, in Balancan only the Environmental Protection and Sustainable Development Department participated,
finding these two limitations. The foregoing considering the contingency due to the COVID-19 pandemic and theadministrative changes due to electoral processes that were taking place during the social field phase.

4Soil and Topography

Based on the soil chart of the United Mexican States Series II (Chart E15-9) (INEGI, 2002) one soil unit
corresponding to Vertisol pelico (Vp) was identified in the Management Units. Vertisol (V) is a type of soil
characteristic of temperate and warm climates, especially in areas with a marked dry season and a rainy season; Itis characterized by its massive structure and its high clay content that expands when wet, forming sliding surfaces
called facets, and because they are collapsible when dry, they can form cracks on the surface or at a certain depth.

They are very fertile soils, but their hardness makes tillage difficult, they have low susceptibility to erosion and highrisk of salinization (INEGI, 2002).
On the other hand, the topography of the land made it possible to identify that in both cases the gentle slope,
characterized by having inclinations between 0 and 5°, is the one that predominates, occupying 80.47% of the El
Llano MU and 76.60% of Las Mercedes MU; This is followed by the moderate slope, where the inclinations are
between 5 and 10° and which represents 18.90% of the El Llano MU and 22.29% of the Las Mercedes MU. The
other categories (steep and fairly steep slope) occupy less than 1% of the surface area of the MUs.
In accordance with the National Interpretation of the Principles and Criteria for the Production of Sustainable Palm
Oil in Mexico (Roundtable on Sustainable Palm Oil, 2020), it is indicated in Criteria 7.5, 7.6 and 7.7 that new oilpalm plantations should not be developed on steep slopes, on marginal and fragile soils or on peaty soils,
regardless of their depth. Annex 1 of this document includes the following definitions:-Fragile soil: A soil that is susceptible to degradation (reduction in fertility) when disturbed. A soil isparticularly fragile if degradation leads rapidly to an unacceptably low level of fertility or if the degradation isirreversible using economically viable management inputs.

-Marginal Soil: A soil that is unlikely to produce acceptable economic returns for the proposed crop based onreasonable projections of crop value and improvement costs. Degraded soils are not marginal soils if theirimprovement and the resulting productivity is profitable.

-Steep terrain: Surfaces with an inclination of more than 25° or as indicated in a National Interpretation
process.

Thus, and considering the identification and soil description for each study MU, no soil units are identified that canbe classified as marginal or fragile, peat soils or areas with steep slopes (>25°); however, in areas with a steepslope, the necessary measures must be adopted to ensure the preservation of the soil and prevent its erosion,
taking into account the previously mentioned guidelines and definitions within the framework of the RSPO.

5GHG

Once the information from the HCS and HCV studies is available, the New Development GHG Calculator
spreadsheet opens. It is worth mentioning that, when downloading the tool, RSPO gives the option of downloading
it in the desired language. For this study it was downloaded in the original version (English), it is important toconsider that regardless of the language in which the tool is downloaded, the information that must be filled out
remains the same. In this spreadsheet, 16 tabs are presented, of which only 8 must be filled out, in the same way inthe tool these tabs are in yellow, it is worth mentioning that for this study the peat tab was not filled out, since it did
not its presence was identified in the study areas.
All the information filled in these tabs are the expected values of performance and production for the newdevelopment. Additionally, the tab is provided where the summary of the results is presented, and describes:-

Field emissions and basins for small producers.

-

Field emissions and basins for use in large-scale operations.

-Emissions generated in the extraction plant.

-

Total emissions, tCO2e (field and extractor)

A step-by-step description of how the calculator was achieved is defined as follows.
I.

LUC emissions: In this diligence tab, the information on the areas that will be cleared for the establishmentof new plantations, as well as the estimated carbon stocks in the existing land cover. If carbon stocks wereestimated by indicators using the default values provided in the RSPO GHG Assessment Procedure, thenthe list of default values provided on the same tab can be selected. However, if measurements were carriedout at field scale, the soil cover type and the corresponding carbon reserves must be defined (filling thecells with yellow color).

II.

RFF Production: The data of the expected yield of tRFF / ha for the new development must be entered, it isimportant to highlight that the data of the planted area is entered automatically by the same tool. Therefore,
it is important to fill out the LUC tab, since the tool will automatically indicate the final expected yield per tonof fresh fruit bunch per year in the plantations for the new development.

III.

Infield Fuel: The expected annual consumption of fuel is indicated, which must include RFFs transportation
to the extraction plant, the transport of RFV and/or fertilizers to the field, transport of workers and materials
in the field, operation of machinery, such as fertilizer spreaders, fertilizer pumps and turners, andmaintenance of infrastructures such as roads and drains for the extractor's own cultivation. Fuel used forland clearing activities (in preparation for new planting) is excluded.

IV.

Fertilizers and N2O: The expected annual fertilizer consumption must be entered, for this data an averageof the annual use of fertilizers that are being applied in the plantations that the company already has can bemade. This sheet calculates the total CO2e produced from the manufacture, transport, and use of fertilizers.
The N2O produced from the application of fertilizers in the field of RFV, fertilizer and EEAP is alsocalculated. The tool provides a list of simple fertilizers, however, for compound fertilizers, each user mustfirst add it in the "User-defined fertilizers" sheet. Emissions from the manufacture of compound fertilizers
can be estimated using the "User Defined Fertilizers" sheet.

V.

seq conservation areas: In this tab it is necessary to enter the total conservation areas, considering theconservation areas established for each scenario and also the areas identified as HCV, once the total area
is obtained it is important that the Equation to determine the tC and thus enter it in the average Cseq, this isdone in order to be able to calculate the emissions of the entire conservation area (ha). The RSPO default
Cseq rate is provided in the same tab. The regional / national / local custom Cseq rate by providing
references for that rate may be used.

VI.

Extractor Data: If the new development does not include mill operations, it will not be necessary to enter
data on this sheet. However, for the company it does apply since it is projecting to send all the fruit that isgenerated from the new developments to its respective extraction plant, therefore, the projected data of thismust be indicated, in terms of CPO and PK production. (t/year), the estimate of methane production fromEEAP and the fuel consumption in the extraction plant as well as the consumption of electricity from thegrid.

The management plans proposed below are developed to meet the goals established by the RSPO about
generating an annual decrease in GHG emissions, which are produced both in plantations and in the mill.

6Acceptance of Management Plans
Jorge Esteban Coronel
Name of Person Responsible
Designation
Sustainability ManagerSignature

Date

July 11, 2023.