IFC requires that this document is made available through the World Bank InfoShop and to the locally affected community no less than 30 days prior to project consideration by the IFC Board of Directors. The Summary of Project Information (SPI) also provides details of where the ERS has been made available to the locally affected community. The SPI must be sent to World Bank InfoShop no less than 30 days prior to project consideration by the IFC Board of Directors.

This is a category B project according to IFC’s environmental review procedure because specific impacts may result that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project included an evaluation of technical and environmental information submitted by the sponsor including the business plan, and physical inspection of all existing operations and the site of the planned new hatchery. The following potential environmental, social, health and safety impacts of the project were addressed and appropriate actions considered: Site acquisition, cultural property and sensitive natural habitats; Environmental assessment of existing operations and facilities; Sustainability of raw material (feed, water) supply; Industrial hygiene, occupational safety and health; Emissions to the environment (e.g. air and water, solid waste and toxic/hazardous materials management) in existing operations; Quality and thoroughness of environmental and social data collection, storage, retrieval, and analyses Employment and the local economy. Environmental Management System (EMS) for existing and planned operations; and, Environmental, health and safety (EHS) performance of existing and planned operations.

The sponsor has presented plans to address these impacts to ensure that the proposed project will upon implementation of the specific agreed measures, comply with the environmental and social requirements - the host country laws and regulations and the World Bank/IFC environment and social policies and the environmental, health and safety guidelines. The information about how these potential impacts will be addressed by the sponsor/project is summarized in the paragraphs that follow. Site acquisition and development. The company occupies 11 sites located in Stavropol Krai, approximately 1,250 kilometers (km) southeast of Moscow. Four of the facilities are in mixed industrial/residential areas and seven in isolated agricultural areas with few neighbors. All of the existing operations have been in existence for more than 15 years and have no impacts on cultural property or sensitive natural habitats. There is no evidence that construction activities would involve removal/disturbance of asbestos, but, any renovation/removal would be managed in accordance with inspection findings. Additionally, Stavropolsky Broiler will provide copies to IFC of all current and subsequent construction and operation permits. Sustainability of raw material supply. Agriculture has been the dominant economic activity in this region for centuries. Following Perestroika, however, many jobs were lost as state-owned facilities were either closed or reduced operations. At full development, Stavropolsky Broiler ‘s operations are expected to strengthen this traditional economic activity and employment in the Stavropol region. Stavropolsky Broiler will endeavor to phase in the sourcing of feed from farms that engage in environmentally sustainable pest management, fertilizer, and soil preparation/harvesting practices. Stavropolsky Broiler will also address environmental implications and associated appropriate management actions when new geographic regions are to be sourced for feed and/or new suppliers are to be contracted. Occupational safety and health. Stavropolsky Broiler’s facilities include feed production, parent stock, brood farms, broiler farms, and processing plants. All are labor-intensive with highly varying degrees of exposure to dust, formalin, ammonia gas, and noise. With the exceptions of: a) noise in the feed mill, heavy equipment areas of the processing plants, and the boiler building at Kubansky Farm; b) detectable ammonia gas in the processing plants; and, c) the lack of sanitary toilets at farms, operations appear to generally meet occupational health and safety (OH&S) requirements of the EU or the World Bank Group. However, fire detection and suppression systems vary in application with minimal or missing equipment in some plants, adequate in others. Nearly all of the facilities have a fire truck equipped with appropriate equipment, and designated staff for operation. Stavropolsky Broiler will carry out a comprehensive occupational health and safety audit of all facilities, including fire protection, to identify site-specific requirements for improvements and will use this as the basis for development and implementation of a corporate-level safety program for all plants in its system. All plants will be upgraded to meet the applicable World Bank Group guidelines and/or standards within two calendar years. A safety coordinator will be appointed in each plant, and accident statistics will be monitored closely as the basis for strengthening training and accident prevention programs. Industrial hygiene. Stavropolsky Broiler will focus on reaching the highest international standards of industrial hygiene. This will include fecal coliform testing of the water supply to all of its processing plants, and the water in chilling tanks, where used. Testing for fecal coliforms will become an integral part of Stavropolsky Broiler’s quality control system and any deviations from internationally-recognized standards will be cause for immediate corrective action. Similarly, Stavropolsky Broiler will conduct periodic testing of its bone meal product to ensure that it is 100 per cent free of any pathogenic organisms. If any deviations are found, Stavropolsky Broiler will take immediate corrective action. Emissions to the environment in existing and planned operations. All process and agricultural wastewaters are collected, and discharged to on-site treatment facilities or treated to varying degrees and discharged to the local municipal sewer system. Upgrading of some systems is needed to meet World Bank Group guidelines. Bag filters and cyclones service the feed mill where the collected dusts are recycled back into the processes. All steam boilers are fired by natural gas with emissions within Russian standards. Stavropolsky Broiler is committed to upgrading these systems to meet/exceed World Bank Group environmental emissions/waste discharge standards within a five-year period. Employment and the local economy. Stavropolsky Broiler’s operations were acquired through purchase of the assets of several poultry operations in the Stavropol region. The investment program is designed to improve market share and international competitiveness. This approach should produce the best results for job security and opportunities for its workers. As job conditions improve, support industries will be encouraged to invest and retain workers to meet the demands of a stable work force. Due to the dispersed nature of Stavropolsky Broiler’s operations throughout Stavropol Krai, all areas will benefit to a greater degree than with a concentrated investment, stabilizing local economies and minimizing worker migration. Environmental Management System for existing and planned operations. Stavropolsky Broiler will adopt the goal of becoming a model in providing the highest levels of environmental protection and occupational safety and health conditions and will focus attention on bringing all facilities to international standards. To this end, Stavropolsky Broiler will develop and implement a comprehensive Environmental Management System (EMS), stating its mission with respect to environmental protection and management. Implementation of the EMS goals and verification to ensure adequate performance of all component facilities will be a principal aspect of IFC's project supervision. Stavropolsky Broiler will carry out all its activities with due concern and protection for the environment in a process of continuous improvement. Stavropolsky Broiler’s senior management will publicly endorse the policy and will adjust employee job descriptions and incentive programs to incorporate environmental and occupational health and safety responsibilities. The EMS will address all project activities including sustainable practices of grain suppliers’ environmental and safety performance. Stavropolsky Broiler will undertake an education campaign to communicate the objectives and requirements of the program to all employees and to members of the supplier network.

The following CAP provides further details of what the sponsor has agreed to carry out: Stavropolsky Broiler Corrective Action Plan (CAP) Make immediate improvements: a) to the wastewater system at Novoderevensky: b) provide hearing protection at Rydzvyanendky and Kubansky heavy machinery areas and enforce a ban on entry without hearing protection; c) provide warnings against working in freezers without positive door-closing prevention; and, d) prevent and correct, to the extent possible, wet floors in working areas; Retain a management-level professional to develop, monitor, analyze, report, and correct deviations in the environmental management system and the occupational health and safety policies; Correct any conditions which do not meet the occupational health and safety requirements of the Russian Federation and/or the World Bank Group; Develop and adopt a company-wide Environmental Policy and management systems for Environment procedures and Occupational Health and Safety; Bring all air emission, wastewater, and solid wastes into compliance with Russian Federation regulations and policies/guideline of the World Bank Group.

Based on its review of available information regarding potential environmental and social impacts and specific mitigation measures addressed in the attached corrective action plan, IFC concludes that the proposed project is being designed to meet Russian government regulatory requirements, as well as World Bank Group policies and environmental, social, and health and safety guidelines.

IFC will monitor compliance with Russian regulations and World Bank Group policies and guidelines and with the attached corrective action plan (CAP) during the life of the project. Stavropolsky Broiler will submit annual environmental monitoring reports (AMR) including status reports on completion of specific milestones described in the CAP. IFC will evaluate these monitoring reports and Stavropolsky Broiler's proposed remedial measures as needed to maintain compliance. Additionally, IFC will conduct periodic site reviews during project supervision.