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. [Further information is provided in the attached documentation.]
Corporate environmental, social, and health and safety management systems:
The company is sensitive to environmental, social development and occupational health and safety (ESHS) aspects of its operations. The sponsor’s coffee plantations are certified under Utz Kapeh standards. Utz Kapeh is a worldwide certification program for responsible coffee production and sourcing. Further, the company proposes to incorporate potential noise, traffic, congestion, other potential community impacts and fire safety aspects into its site selection, and facility design and operations systems. ABC will implement a companywide certifiable hygiene and food safety management system based on HACCP standards, within a time frame to be agreed with IFC. Further, ABC proposes to obtain a “Codex Alimentarius”certification for its Liquid Coffee Concentrate operations. The Codex Alimentarius (developed by FAO and WHO), or the food code, is the global reference point for consumers, food producers and processors, national food control agencies and the international food trade.
National and local government permitting requirements:
ABC has a system to obtain all regulatory approvals including those under Shops and Commercial Establishment Act, Factories Act, Water Act, Air Act, Environment Act and Plantation Workers Act, where relevant and applicable. The company’s curing and roasting operations and the sponsor’s coffee plantations generate and handle hazardous wastes such as used oil, oil soaked rags, oil and pesticide drums, barrels and car buoys, which are regulated under national laws. The company will need to obtain an authorization for handling these hazardous wastes under the Hazardous Waste Management and Handling Rules 1989 as amended up to 2003. The company will undertake necessary measures to ensure that all its facilities remain compliant with applicable environmental, occupational health and safety regulations of GOI.
Source of power and energy, including fuel storage if applicable:
The principal source of power at ABC’s cafes is grid electricity but a 40 KVA package diesel generator (DG) set is usually provided as backup power. Diesel fuel, at these locations, is stored in drums near the DG. The company’s curing works at Hassan has 2 x 40 KVA DG, one of which is a package type unit and 3 x 125 KVA DG. Diesel is stored in drums in the DG room. There are two DG sets at the Chikmagalur curing works of 180 and 125 KVA respectively. Diesel fuel at Chikmagalur facility is stored in 125- and 40-litre day tanks in the DG room and bulk storage is in a 12 kilolitre (KL) underground tank. Site management confirmed that the underground storage tank has secondary containment, in the event of a leak or spill. The company will, across all its operations, provide appropriate secondary containment in diesel storage areas, restrict access to fuel storage areas and provide fire prevention, detection and control facilities in fuel storage areas.
Air emissions from existing and new sources in construction and operation:
The principal point source of air emissions at ABC’s facilities are the standby DG sets, in addition to roasters, dryers and boilers in the curing works. The primary source of fugitive emission is the hulling and husk handling operation in the curing works. DG sets, roasters and boilers are equipped with stacks and the hulling and husk handling areas with de-dusting units. The company is currently not monitoring air emissions, but will undertake benchmark monitoring to demonstrate compliance with World Bank Group (WBG) norms and institute a program, in consultation with IFC, to periodically monitor the same. Where required, ABC will undertake programs to ensure that emissions from the DG sets, boilers, roaster, dryer and vents remain compliant with WBG and host country norms.
Ambient air quality and noise impacts on nearby receptors in construction and operation:
The company is not currently monitoring ambient air quality at the curing works. ABC will undertake benchmark monitoring of ambient air quality and noise levels to demonstrate compliance with National Ambient Air Quality standards and WBG requirements and, where required, ABC will undertake appropriate programs to meet WBG requirements. In accordance with regulatory requirements, the company will provide appropriate acoustic treatment to the DG set room to ensure a 25 dB(A) insertion loss in noise levels within the room and at 0.5 m outside the room. The company also will institute a program, in consultation with IFC, for periodic monitoring of ambient air quality and noise levels at the curing works, to demonstrate compliance with host country and WBG norms.
Source and volumes of water consumed including efforts to minimize water use:
ABC’s café operations meet their water requirement from municipal sources. Customers are usually offered a choice of bottled mineral or municipal water after filtration and UV treatment. Curing facilities draw groundwater to meet their water requirement. The company does not currently meter the daily withdrawal of groundwater but will install meters in future to enable monitoring of water usage. In plantations and curing works, piped spring water is directly supplied as drinking water. The company will install meters to monitor water consumption; undertake benchmark testing of drinking water and, if necessary, install facilities to ensure drinking water meets appropriate standards for potability; and explore the feasibility of installing rainwater harvesting facilities at the curing works and plantations.
Recycling and treatment of process effluent and domestic waste water:
The principal source of process effluent at ABC’s cafes is wash water used for cleaning, washing and other domestic purposes. The company has initiated a program with Johnson Diversy to minimize use of detergents, particularly phosphate containing detergents, in washing and cleaning. Sewage from cafes is discharged to the municipal sewerage system. In the plantations and curing works, the principal effluent is domestic sewage from laborers’ quarters, workers’ toilets and wash areas. Sewage at these locations is discharged via septic tanks and soak pits. At the Curing works, the company will ensure complete segregation of domestic effluent and storm water streams, and ensure that fuel oil, used oil/lubricant spillage or other spills do not flow into the domestic effluent/storm water effluent streams. ABC will undertake benchmark testing of treated domestic sewage to demonstrate compliance with WBG and host country norms.
Hazardous materials management:
ABC uses several hazardous materials including fuel oil, pesticides and lubricants, particularly in the curing facilities and sponsor-owned coffee plantations. Storage, handling and management of hazardous materials requires improvement. ABC will adopt improved material handling practices, make available personal protective equipment (PPE) to all workers handling hazardous materials, enforce use of PPE provided, increase training of employees and contract labor handling hazardous materials and provide washing stations in material handling areas. In addition, the company will ensure that all necessary antidotes for accidental exposure are available and readily accessible. Moreover, ABC will post information on antidotes, their availability and location in relevant areas.
Minimization, recycling and disposal of solid and hazardous wastes:
During the site visit to ABC’s various facilities, it was noticed that management of hazardous waste and other solid wastes requires improvement. ABC will carry out appropriate categorization, segregation and storage of solid wastes in appropriately marked areas/bins and dispose them in accordance with relevant regulations. Further, the company will categorize, handle and store hazardous waste in accordance with the Hazardous Waste Management and Handling Rules; store hazardous wastes only in earmarked areas with appropriate containment; and dispose them only through authorized contractors, in a manner approved by the regulatory authorities. The company also will explore the feasibility of vermi-composting of kitchen waste generated in the cafes.
Fire and life safety and emergency response:
ABC’s curing facilities have fire extinguishers but the checking and refilling is not current. Fire detection, prevention and control system in cafes require improvement. The company will, in consultation with IFC and within a timeframe to be agreed with IFC, commission a Fire and Life Safety Audit and develop an action plan for prevention, detection and control of fire incidents based on the findings of the above audit.
Occupational health and safety in operation and construction. The key occupational health and safety issues that were noted during the site visit and that ABC will address include:
- annual monitoring of the work place environment, particularly in the hulling and husk handling section of curing facilities as per Schedule II of the Factories Act;
- monitoring of work place noise levels, identification of opportunities for reducing noise levels at the work place particularly the curing works, conducting hearing benchmark testing for all employees exposed to high levels of noise, and enforcement of use of PPE, including hearing protection;
- undertaking measures for improved ventilation, including installation of de-dusting units in hulling, husk handling and roasting units at curing works;
- improved illumination in curing works, particularly areas where night shift operations are undertaken;
- annual general health monitoring through a targeted health monitoring program for employees exposed to hazardous conditions. The company will ensure that contractors implement a health surveillance program for contract labor as well;
- maintaining a register of incidents and accidents;
- enforcing use of relevant PPE, improving signage, conducting periodic health and safety audits to identify opportunities for improvement together with education and training;
- training of employees and contract labor in various aspects of occupational health and safety;
- awareness building on sexual harassment and display of Supreme Court definition of sexual harassment and the recourse available to harassed employees, at appropriate locations;
- arranging for the visit of a women’s doctor at least once a month for women employees working in curing units; and
- implementing an emergency response plan and communicating its contents to all relevant stakeholders.
Coffee Plantation workers welfare, occupational health and safety:
The sponsor’s plantations employ on average 1 laborer for every 4 acres, and an additional 1.5 laborers per 4 acres in peak season (November to March). Each laborer is provided accommodation on the plantations (one room plus kitchen, bathroom and toilet). The company provides wages as per regulations, along with Employee State Insurance coverage, free electricity and free medical care. Plantation management provides fuel wood to labor from dead wood available in the plantations. Plantation management will improve ventilation and chimneys, in workers quarters to minimize indoor air pollution. Management currently provides gloves, masks and ear defenders to labor for spraying of pesticides and will provide appropriate work overalls and other PPE to these workers so as to minimize risk of ingestion, inhalation and dermal contact with pesticides.
Fair trade labeling:
The company procures coffee fruits from ~10,000 growers, of which nearly 80% of its total requirement comes from approximately 1000 growers. The company communicates the prevalent commodity prices for coffee (London and New York markets) to its procurement agents daily, who procure coffee on behalf of ABC at these prices. ABC proposes to explore the feasibility of obtaining a ‘fair trade’ label, initially for its export operations but eventually across all its operations.
Pest Management in warehouse and coffee plantation:
The company uses several pesticides in its warehouses and plantations. Jute bags, in which green coffee beans are collected and stored, are fumigated with methyl bromide, an ozone-depleting substance whose use is gradually being phased out under the Montreal Protocol. Use of methyl bromide is, however, permitted in India until 2015. All pesticides are stored in a separate room that is locked and access is restricted. Appropriate signage is provided outside the room and emergency contact numbers are provided. Material Safety Data Sheets (MSDSs) for pesticides in use are available in plantations, but antidotes were not readily available. Handling, storage and disposal of empty pesticide containers requires improvement. The sponsor will adopt integrated pest management practices, not use any of the banned pesticides and pesticides specified under international conventions, avoid using pesticides containing chlorinated hydro-carbons and phase out the use of pesticides restricted under WBG guidelines. The sponsor will use ultra low volume application methods, dispose off containers and bags as per MSDS instructions, provide appropriate training to labor handling pesticide together with all necessary PPE including gloves, mask, shoes, full sleeve aprons, trousers and ear defenders and enforce use of PPE.
Public Consultation and Disclosure:
The company will develop a process for consulting local stakeholders and embed the same in the decision process for setting up of its cafes particularly for those in the vicinity of residential areas.
Corporate social responsibility efforts, including HIV/AIDS awareness:
The company, under its speciality coffee initiative, has disseminated good practices in coffee cultivation to some of its outgrowers. IFC will work with the company and develop a program to build the capacity of 50 of its major out growers on Utz Kapeh standards and practices. The company will explore the feasibility of promoting a HIV/AIDS awareness program. IFC will make available details of its program on HIV/AIDS to the company.
