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Environmental & Social Review Summary
Project Number
24424
Company Name
JOHN KEELLS HOLDINGS PLC
Date ESRS Disclosed
May 8, 2007
Country
Sri Lanka
Region
South Asia
Last Updated Date
Jun 3, 2021
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Jun 12, 2007
Signed : Feb 15, 2008
Invested : Apr 4, 2008
Sector
City and Business Hotel
Industry
Tourism, Retail and Property
Department
Regional Industry - MAS Asia & Pac
Project Description
John Keells Holdings Limited (JKH, the company or the Group) is a leading conglomerate in Sri Lanka, with diversified businesses in real estate development, hotels and leisure services, processed food & beverages, retail, transportation services, financial services and information technology sectors. IFC’s relationship with the company started in 1992 and included investments in a bank, a fund, a power plant and a container port project. The company seeks financing from IFC to expand its current and future activities in Sri Lanka and abroad.
Overview of IFC's Scope of Review
IFC’s appraisal consisted of:
- a review of documentation and discussions with JKH management regarding the Group’s activities in: real estate development; hotel and resort development and operations; food processing, distribution and retail operations; transportation services; IT and BPO services; and financial services and
-a physical inspection of a representative sample of the Group’s operations including: the Crescat City development; hotels and resorts in Sri Lanka and Maldives; the Lanka Marine Services bunkering facility in Colombo; the SAGT container terminal in Colombo; John Keells Supermarkets; and the Karawita tea factory.
- a review of documentation and discussions with JKH management regarding the Group’s activities in: real estate development; hotel and resort development and operations; food processing, distribution and retail operations; transportation services; IT and BPO services; and financial services and
-a physical inspection of a representative sample of the Group’s operations including: the Crescat City development; hotels and resorts in Sri Lanka and Maldives; the Lanka Marine Services bunkering facility in Colombo; the SAGT container terminal in Colombo; John Keells Supermarkets; and the Karawita tea factory.
E & S Project Categorization and Applicable Standard
The preliminary review of project information anticipated impacts related to the following Performance Standards (PS):
- PS1: Social and Environmental Assessment and Management Systems
- PS2: Labor and Working Conditions
- PS3: Pollution Prevention and Abatement
- PS 4: Community Health, Safety and Security
- PS 6: Biodiversity Conservation and Sustainable Natural Resource Management
The findings of the project review confirm the application of these performance standards and indicate that there are no impacts related to Involuntary Resettlement (PS5), Indigenous Peoples (PS7) or Cultural Heritage (PS8).
- PS1: Social and Environmental Assessment and Management Systems
- PS2: Labor and Working Conditions
- PS3: Pollution Prevention and Abatement
- PS 4: Community Health, Safety and Security
- PS 6: Biodiversity Conservation and Sustainable Natural Resource Management
The findings of the project review confirm the application of these performance standards and indicate that there are no impacts related to Involuntary Resettlement (PS5), Indigenous Peoples (PS7) or Cultural Heritage (PS8).
This is a category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.
The group has successfully integrated the application of efficient environmental, health, safety and quality management systems consistent with international standards (ISO) as well as IFC environmental and social performance standards into all of its core sector operations.
The group has successfully integrated the application of efficient environmental, health, safety and quality management systems consistent with international standards (ISO) as well as IFC environmental and social performance standards into all of its core sector operations.
Environmental and Social Mitigation Measures
The company has systems in place to address potentially adverse impacts to ensure that the activities financed by IFC will comply with host country laws and regulations and IFC’s performance standards on social and environmental sustainability, and the applicable World Bank Group environmental, health and safety guidelines. Information concerning how these potential impacts will be addressed by the company is summarized in the paragraphs that follow.
Social and Environmental Assessment and Management Systems:
IFC’s assessment considered the following:
- the company’s management of its environmental, health and safety performance in the establishment and operation of its facilities; - compliance with national and local permitting requirements; and
- the company’s engagement with local communities regarding environmental, health and safety performance and corporate social responsibility.
In 2004, the Group engaged an independent consultant to undertake an EHS audit across the entire JKH group to benchmark the Group with international standards including OHSAS 18001, ISO 14001, BS800 and other relevant standard procedures practiced by Fortune 500 Companies. The Audit was conducted across 51 business units in 20 sites and resulted in a revamping and rationalization of EHS management structures and practices across the Group. The Group has successfully integrated several efficient environmental, health, safety and quality management systems consistent with international standards (ISO) as well as IFC environmental and social performance standards among its core sector operations.
Environmental & Social Assessment:
The most significant environmental and social impacts associated with this investment relate to the Group’s real estate, hotel and resort development and operations. JKH acquired a controlling stake in the existing Crescat Boulevard and Residencies – an up-market shopping plaza and 25 storey/152 unit apartment tower – in 2003 along with a 500+ room luxury class hotel that has since been re-branded as the Cinnamon Grand. The Group is further developing this 11.5 acre site with: the construction of a 30 storey/195 unit apartment tower (The Monarch), which has been erected and is being outfitted for completion by June 2007; and a 35 storey/172 unit condominium tower (The Emperor) scheduled for completion in 2009.
The Sri Lankan Central Environmental Authority did not require detailed environmental impact assessments of either of the apartment tower developments. Rather, review of proposed tower projects was undertaken by the Environmental Consultative Committee of the Colombo Urban Development Authority. Permitting requirements included, during the construction phase, an Emergency Response Plan (Contingency Plan), a Traffic Impact Assessment, restrictions on noise, dust, solid and liquid waste. Additional permits were obtained from various departments of the Colombo Municipal Council, including Fire Services, Solid Waste Management, Water Supply and Drainage and Coast Conservation for the construction and operations of the towers.
Construction of the two towers is being undertaken by Singapore Piling and Civil Engineering PTE. Ltd. (Singapore Piling), an ISO 9000, ISO 14000 and OHSMS certified firm. Singapore Piling maintains rigorous standards of construction site health and safety through ISO compliant EHS management systems that are regularly audited by the company’s head office. Fire and emergency response drills are carried out on a monthly basis. Adequate systems are in place for controlling noise, dust, wastewater emissions, solid and hazardous waste (including waste lubricants). Access to the construction site is controlled around the clock by a locally contracted security service.
The Group’s other significant property development is the construction of a 100 room resort on the island of Alidhoo in the North Atoll of the Maldives. An EIA was prepared prior to the project’s implementation.
Management Systems:
JKH maintains a highly integrated management system based on ISO quality management standards and utilizing SAP to consolidate the reporting of each of its core sector companies. Each of the sector companies employs integrated EHS management systems, many of which are ISO certified.
In 2004, the Group engaged an independent consultant to undertake an EHS audit across the entire JKH group to benchmark the Group with international standards including OHSAS 18001, ISO 14001, BS8000 and other relevant standard procedures practiced by Fortune 500 Companies. The audit was conducted across 51 business units in 20 sites and resulted in a revamping and rationalization of EHS management structures and practices across the Group.
Examples of EHS systems in place within the business sectors include:
The Group’s two city hotels, Cinnamon Grand and Trans Asia, are certified compliant with ISO 14001 (Environmental management), ISO 22000 (Food safety) OSHAS 18001 (Occupational health and safety) and HACCP standards. As part of its upgrading and re-branding program, each of the Group’s “Cinnamon” resorts (Cinnamon Lodge Habarana, Bentota Beach and Alidhoo resorts) is expected to achieve this same suite of standards by 2009 (need milestone from Group). The resorts marketed under the “Chaaya” brand (Chaaya Village Habarana, Chaaya Lagoon Hakura, Dhonveli, Elaidhoo and Yala Village) is expected to achieve this same suite of standards by 2008. All Sri Lankan properties are inspected on an annual basis by the Central Environmental Authority (in Colombo) or the Municipal Council authorities (outside of Colombo) for compliance with national potable and wastewater quality standards.
The operations of the Group’s Lanka Marine Services (LMS), a 33,000 ton diesel and heavy fuel bunkering facility near the Port of Colombo, is inspected annually by SGS to qualify for certification by the Colombo Ports Authority for compliance with all applicable International Maritime Organization requirements, including the MARPOL convention, the International Ship and Port Facility Security Code, the Safety of Lives at Sea Convention (governing the operation of the three LMS vessels of 1200 MT, 750 MT and 600 MT, respectively). Fire fighting systems are NFPA compliant and regularly inspected by the Colombo Ports Authority Fire Brigade. The LMS EHS system, inclusive of its Emergency Response procedures, has been developed in consultation with Shell and BP, for which LMS provides storage and distribution services. Personnel training and periodic testing of the system is coordinated with the Sri Lankan Marine Pollution Prevention Authority. The Colombo Municipal Council inspects the storage facilities annually as does the Central Environmental Authority with regard to the management of solid waste, effluent discharge, noise and emissions from the pump house boilers.
The Group’s Food and Beverage operations – Ceylon Cold Stores and Keells Food Products Limited – which produce carbonated beverages, ice creams and processed meats, are certified ISO 9001 and HACCP compliant and apply Total Performance Maintenance systems including Kaizen and 5S to all operations.
Of the Group’s nine tea factories, which account for 2.5% of Sri Lanka’s approximately 300 million kg annual production, five are certified ISO 9001, ISO 22000 and HACCP compliant.
Of the Group’s Transportation services, Walkers Air Services (Airlines Division) and Mackinnons American Express Travels are certified ISO 9001/9002 compliant.
South Asia Gateways Terminal in the Port of Colombo, which handles over 1.4 million containers per year, maintains ISO systems for quality and environmental management and occupational health and safety standards.
In addition to its own internal EHS management and reporting, the Group’s hotels and resorts are audited on a regular basis by the tourism industry, including Thomas Cook and Kuoni. These audits are respected throughout the industry as assurance of the quality, safety and environmental responsibility of the operator.
Organization:
All business units maintain an EHS monitoring and management structure per ISO standards, inclusive of regular staff training and emphasis on continuous improvement of performance. All business units within a specific sector report on financial, environmental and social performance to an executive vice president responsible for that sector. Information is consolidated and highlights are presented to the Board by a designated Director for Corporate Social Responsibility in the form of an annual Sustainability Report. The Group retains Ernst & Young to audit and verify the content of the Sustainability Report.
Community Engagement:
The Group endeavors to ensure effective communication of its performance, principles and policies to all stakeholders – employees, customers, suppliers, investors, the Media and the public. Engagement with the public is undertaken through a corporate website as well as the Media. The Group website (www.keells.com/) provides timely and accurate information targeted to all Stakeholders. Media releases are issued and audio visual presentations are disseminated on the performance of the Group as well as significant achievements and developments in English, Sinhala and Tamil languages to reach a wide cross section of the Group’s Stakeholders.
Human resources and working conditions:
IFC’s assessment considered the company’s operations with regard to fair, safe and healthy working conditions in construction and operation of facilities. The Group employs more than 7,600 full time staff and another 1,700 contract staff in all its business units as of the end of 2006. In addition, Ceylon Cold Stores links together 200 distributors and 74,000 retailers in a commercial network that, by company estimates, generates more than 150,000 jobs.
Human Resource Policy and Management:
The JKH HR policy is consistent with the ILO declaration on fundamental principles and rights at work. The HR policy includes components related to: guidelines for recruitment, selection and continuity in service; standardized skill competencies; performance appraisal; career progression; professional development; rewards and recognition; and professional ethics.
The Group maintains a centralized HR management system under the supervision of a Group President. The HR policy is communicated comprehensively to employees during their induction. All information relevant to employees with regards to HR processes such as recruitment, selection and performance management is available on the Group-wide Intranet. The HR structure facilitates the constant upgrading of HR practices in the Group in line with the best practices of Fortune 500 companies. Salary and benefit packages for all employees are competitive and reviewed annually.
Worker’s Organizations:
The Group’s workforce is represented by six trade unions including the Ceylon Workers Congress and the Ceylon Mercantile Union. Collective bargaining agreements are maintained with each of these trade unions in the relevant industries governing working hours, leave, remuneration, dispute procedures, disciplinary procedures and benefits.
The Group maintains a Joint Consultative Process and Group-wide Problem Solving Mechanism that address and quickly resolve employee concerns at all levels without unnecessary escalation. A number of the Group’s companies are also members of the Employee Mediation Services Centre for the Settlement of Industrial Disputes and Employee Disputes under the auspices of the Employers Federation of Ceylon.
Retrenchment:
There is no retrenchment associated with IFC’s investment in the company.
Occupational Health & Safety
The Group follows all national and local statutes governing the protection of the workforce. High standards of workplace health and safety are maintained by each operating unit in accordance with ISO standards for monitoring, reporting, corrective action and continuous improvement.
All Group company operations that require the handling of potentially hazardous materials (e.g., fuel oil, laundry chemicals, water treatment and cooling tower chemicals) have relevant safety signage posted in the workplace as well as Material Safety Data Sheets.
The Group adheres to a strict policy against child labor and, as a signatory to the UN Global Compact, it upholds the principles governing the elimination of all forms of forced and compulsory labor and the effective abolition of child labor.
As noted above, high standards of workplace health and safety are maintained on the construction site of the Monarch and Emperor towers.
Pollution Prevention and Abatement:
IFC’s assessment considered the company’s operations with regard to efforts to optimize resource inputs, including energy efficiency and waste minimization practices as well as the storage, handling hazardous materials used in the construction and operations of facilities.
Pollution Prevention and Resource Conservation:
Sri Lanka’s Municipal Councils have the authority of regulating, permitting and monitoring water supply and drainage and solid waste management. The Central Environmental Authority has established the National Air Quality Standards (NAQS) and is the agency responsible for monitoring air emissions of industrial and semi-industrial units. The Sri Lankan NAQS and effluent standards are generally compatible with the World Bank Group standards.
Water Supply and Effluent:
Water supply for all existing JKH city hotels and retail facilities is sourced from the municipal water supply. The Colombo Municipal Council is responsible for maintaining the potable water supply to internationally acceptable (i.e., WHO) standards. No independent water testing or treatment is undertaken as part of the hotel or retail operations. The Group’s food processing operations maintain strict water quality standards and apply standard water treatment processes (e.g., carbon filtration and UV treatment followed by micro-filtration) to ensure quality. Hotel and resort operations outside of Colombo source potable water from their respective municipal supplies but apply standard water treatment processes to ensure quality. Water quality at these hotels is regularly monitored by in-house engineering staff. Water supply for Maldives resort operations follows standard desalinization, dosing and filtration procedures common throughout Maldives.
Energy Supply and Air Quality:
More than half of Sri Lanka’s energy supply is derived from hydropower and the majority of the balance is generated from oil-fired thermal power generation. The Group’s operating units rely exclusively on electricity supplied from the national grid. Many operating facilities (e.g., hotels, resorts, food processing units, tea factories) maintain back-up diesel generator sets but the national power supply is reliable. As such, operating logs indicate that these units are rarely utilized. The Central Environmental Authority, through its representation within the Municipal Councils, monitors emissions from all generators based on the performance results of routine test maintenance operations. A sample of records and permits maintained by a number of Group operating units (e.g., Cinnamon Grand, Trans Asia Hotel, Bentota Beach Hotel, Lanka Marine Services) indicates that the operating units fully comply with National Air Quality Standards.
Liquid Effluent:
All Group operating units within the jurisdiction of a Municipal Council typically discharge untreated wastewater and sanitary wastes directly to municipal sewer lines. The Colombo Municipal Council has recently imposed restrictions on waste water discharge by industrial and large scale commercial development. The Group’s Ceylon Cold Stores responded by constructing an 1100 m3 per day waste water treatment plant, and the Group’s Monarch and Emperor towers will include waste water treatment plants for each. Outside of the jurisdiction of Municipal Councils, operating units (e.g., tea factories) utilize self-contained septic systems.
Solid Waste:
The Group complies with all applicable statutory requirements for the handling and disposal of solid waste. Where appropriate, as in hotel and resort operations, solid waste is segregated, properly stored and removed by Municipal Authority contractors to sanitary landfills. Resort operations in Maldives dispose of non-biodegradable solid waste to the national landfill on Tilafushi Island near the capital island of Male.
Lanka Marine Services:
Lanka Marine Services (LMS) is a land-based marine bunkering facility that the Group purchased from the Sri Lanka Ports Authority in 2002. The site accommodates 12 tanks that have a combined capacity of 33,000 tons of Heavy Fuel Oil and Diesel. In addition, LMS clears, stocks and distributes barreled lubricants for most of the majors supplying Sri Lanka – Caltex, Exxon, Elf, BP, Shell and Castrol. Storage tanks are clustered in bunded areas on a base of bitumen and concrete that drain to oil separation sumps. All tanks have been refurbished since privatization by the internationally respected marine engineering firm Colombo Dockyards, an ISO 9000 company. (http://www.cdl.lk/company.php).
The facility’s firefighting system has also been upgraded since privatization.
LMS owns two double-hull tanker vessels of 750 and 1200 MT capacity, respectively, and charters a 600 MT double-hull vessel. Vessels are inspected on an annual basis for compliance with MARPOL safety standards by SGS. LMS EHS policy and practices have been developed in collaboration with Shell and BP inclusive of joint emergency response and spill containment drills that are conducted with the Sri Lankan Port Authority and the national Marine Pollution Prevention Authority:http://www.treasury.gov.lk/FPPFM/ped/pdfdoc/marinepollutionpreventionauthority/mppaar2002.pdf
The Colombo Municipal Council undertakes a public health inspection and systems audit of all storage facilities. The Central Environmental Authority issues an Environmental Protection license every three years based on annual inspections of solid waste management, effluent discharge, noise, boiler emissions and any proposed expansion or upgrading of facilities. LMS’ two tanker trucks are inspected and licensed by the Ceylon Petroleum Corporation for delivery of diesel and heavy fuel oil to smaller ports around the country.
Resource Conservation:
The Group has integrated efforts to conserve energy and reduce waste into all operations as part of its commitment to environmentally responsible performance, as reported through its annual Sustainability report. Through its adoption of ISO 14001 systems of environmental management, it monitors the environmental performance of all operations to ensure compliance with Central Environmental Authority standards.
For example, Ceylon Cold Stores commissioned an energy audit in 2004 that identified potential reductions of electrical and thermal energy by 10% in business operations. The Group’s tea factories have recently replaced metal fan blades of all leaf drying beds with lightweight carbon fibre blades resulting in significant savings in energy needed to drive the fans. The Group’s hotels and resort operations practice well established methods of resource and energy conservation through the utilization of compact fluorescent lighting, room key card activated lighting and air conditioning, voluntary limits on towel and linen laundering, use of “eco-friendly” laundry, kitchen and housekeeping cleaning agents, installation of heat pumps and solar panels for the production of hot water, phase out of chillers and refrigeration units utilizing ozone depleting substances, recycling of solid waste and use of treated wastewater for irrigation to conserve raw water. Jay Kay Marketing Services has replaced open island freezers at all Keells Supermarkets with closed freezers resulting in a 60% reduction in energy consumption. Keells Tours monitors vehicle emissions and carries out routine maintenance to ensure all vehicles meet National Air Quality Standards. John Keells Office Automation participates in the “Toshiba Go Green” program by recycling toner cartridges.
Community Health Safety and Security. IFC’s assessment considered the company’s operations with regard to the impacts of the construction and operations of facilities, including: movement of vehicles to and from construction sites, operation of construction equipment, containment of dust, noise and other nuisance factors; and control of public access to construction sites.
Crescat City Development:
The construction site at Crescat City (Monarch and Emperor Towers) is maintained to international standards by the EPC contractor, Singapore Pilings. The perimeter of the site is secure and access is strictly controlled around the clock by a locally contracted security service. Appropriate EHS controls are in place to protect pedestrians and traffic outside the perimeter of the site from falling debris and dust. The Crescat neighborhood is a high security zone where the residences of the President and the Prime Minister as well as a number of foreign embassies are located. Access to the area by construction vehicles is tightly controlled.
The Crescat development has been designed, built and outfitted in compliance with British Standards for fire precautions, fire detection, fire alarms and fire fighting as well as Sri Lankan fire regulations developed by the National Institute for Construction Training and Development.
Hotels, Resorts and Retail Outlets:
All Group properties, including the Boulevard shopping plaza at Crescat City as well as its hotels and resorts, are equipped with fire detection and fire fighting systems that are compliant with guidelines developed by the British Standards Institute. Each property has an emergency evacuation plan and drills are carried out on a biannual basis under the supervision of the local fire brigade. Resorts in the Maldives comply with national Life and Fire Safety requirements. All publicly accessible properties are monitored by locally contracted security service.
Food safety in all of the Group’s food processing, distribution and retailing operations is maintained in accordance with HACCP guidelines (see PS 1 for listing of HACCP-certified units).
All of the Groups retail outlets, including the 25 Keells Super Stores, as well as the restaurants in the Food Court of the Boulevard shopping plaza, are required to have a Life and Fire Safety inspection. John Keells Marketing Services retains a Life and Fire Safety Consultant to assess each new property acquired for development as a retail outlet.
Lanka Marine Services:
LMS maintains its own fire brigade to maintain and operate its NFPA-certified firefighting system. This team is backed-up by the Colombo Port Authority fire fighting service. Each of the LMS vessels meets the life and fire safety standards established by the International Maritime Organization’s Safety of Life at Sea convention as well as marine pollution prevention and control standards required by MARPOL. Twenty-four hour security of the LMS bunkering facility is maintained by a locally contracted security service. The same EHS and security controls are applied to the LMS ancillary operations in Galle and Trincomalee.
South Asia Gateway Terminal (SAGT):
The Port of Colombo is a high security zone to which access is tightly controlled from land and sea by the Sri Lanka’s armed forces. In addition, SAGT maintains its own security, employing 28 guards in two shifts. All containers entering and exiting the terminal by truck are mechanically scanned for radioactive materials as are a random sample of trans-shipped containers.
SAGT subscribes to the IMO’s International Ship and Port Facility Security Code, which requires monthly emergency response drills. SAGT collaborates with the Colombo Ports Authority to ensure adequate response to any accidents related to container ships in berth or on the terminal’s premises. SAGT is also fully geared and equipped to participate in the US Customs and Coastguard Mega Ports Initiative (MPI) and will begin scanning US bound and other transshipment containers when Customs are ready to commence.
Biodiversity Conservation and Sustainable Natural Resources Management. IFC’s assessment considered the direct impact of Group activities on biodiversity and natural resources is limited to its tourism services and resort operations, both in Sri Lanka and Maldives, and the outgrower activities that support its tea and food processing businesses.
The Group operates a 67 room resort at Yala in southern Sri Lanka adjacent to a national wild life park and provides support to park rangers in their visitor education and anti-poaching efforts. The CSR arm of the Group (John Keells Social Responsibility Foundation) is providing English language skills to park rangers to improve their communication efficiencies. It is also collaborating with the Central Environmental Authority and the Department of Architecture of the University of Moratuwa in developing a “Nature Field Center” in Rumassala, Galle, to sensitize visitors, particularly school children, about the natural resources and biodiversity of the area.
The outgrower programs of the Group’s companies promote sound agricultural practices that emphasize soil conservation and the judicious application of agro-chemicals.
Social and Environmental Assessment and Management Systems:
IFC’s assessment considered the following:
- the company’s management of its environmental, health and safety performance in the establishment and operation of its facilities; - compliance with national and local permitting requirements; and
- the company’s engagement with local communities regarding environmental, health and safety performance and corporate social responsibility.
In 2004, the Group engaged an independent consultant to undertake an EHS audit across the entire JKH group to benchmark the Group with international standards including OHSAS 18001, ISO 14001, BS800 and other relevant standard procedures practiced by Fortune 500 Companies. The Audit was conducted across 51 business units in 20 sites and resulted in a revamping and rationalization of EHS management structures and practices across the Group. The Group has successfully integrated several efficient environmental, health, safety and quality management systems consistent with international standards (ISO) as well as IFC environmental and social performance standards among its core sector operations.
Environmental & Social Assessment:
The most significant environmental and social impacts associated with this investment relate to the Group’s real estate, hotel and resort development and operations. JKH acquired a controlling stake in the existing Crescat Boulevard and Residencies – an up-market shopping plaza and 25 storey/152 unit apartment tower – in 2003 along with a 500+ room luxury class hotel that has since been re-branded as the Cinnamon Grand. The Group is further developing this 11.5 acre site with: the construction of a 30 storey/195 unit apartment tower (The Monarch), which has been erected and is being outfitted for completion by June 2007; and a 35 storey/172 unit condominium tower (The Emperor) scheduled for completion in 2009.
The Sri Lankan Central Environmental Authority did not require detailed environmental impact assessments of either of the apartment tower developments. Rather, review of proposed tower projects was undertaken by the Environmental Consultative Committee of the Colombo Urban Development Authority. Permitting requirements included, during the construction phase, an Emergency Response Plan (Contingency Plan), a Traffic Impact Assessment, restrictions on noise, dust, solid and liquid waste. Additional permits were obtained from various departments of the Colombo Municipal Council, including Fire Services, Solid Waste Management, Water Supply and Drainage and Coast Conservation for the construction and operations of the towers.
Construction of the two towers is being undertaken by Singapore Piling and Civil Engineering PTE. Ltd. (Singapore Piling), an ISO 9000, ISO 14000 and OHSMS certified firm. Singapore Piling maintains rigorous standards of construction site health and safety through ISO compliant EHS management systems that are regularly audited by the company’s head office. Fire and emergency response drills are carried out on a monthly basis. Adequate systems are in place for controlling noise, dust, wastewater emissions, solid and hazardous waste (including waste lubricants). Access to the construction site is controlled around the clock by a locally contracted security service.
The Group’s other significant property development is the construction of a 100 room resort on the island of Alidhoo in the North Atoll of the Maldives. An EIA was prepared prior to the project’s implementation.
Management Systems:
JKH maintains a highly integrated management system based on ISO quality management standards and utilizing SAP to consolidate the reporting of each of its core sector companies. Each of the sector companies employs integrated EHS management systems, many of which are ISO certified.
In 2004, the Group engaged an independent consultant to undertake an EHS audit across the entire JKH group to benchmark the Group with international standards including OHSAS 18001, ISO 14001, BS8000 and other relevant standard procedures practiced by Fortune 500 Companies. The audit was conducted across 51 business units in 20 sites and resulted in a revamping and rationalization of EHS management structures and practices across the Group.
Examples of EHS systems in place within the business sectors include:
The Group’s two city hotels, Cinnamon Grand and Trans Asia, are certified compliant with ISO 14001 (Environmental management), ISO 22000 (Food safety) OSHAS 18001 (Occupational health and safety) and HACCP standards. As part of its upgrading and re-branding program, each of the Group’s “Cinnamon” resorts (Cinnamon Lodge Habarana, Bentota Beach and Alidhoo resorts) is expected to achieve this same suite of standards by 2009 (need milestone from Group). The resorts marketed under the “Chaaya” brand (Chaaya Village Habarana, Chaaya Lagoon Hakura, Dhonveli, Elaidhoo and Yala Village) is expected to achieve this same suite of standards by 2008. All Sri Lankan properties are inspected on an annual basis by the Central Environmental Authority (in Colombo) or the Municipal Council authorities (outside of Colombo) for compliance with national potable and wastewater quality standards.
The operations of the Group’s Lanka Marine Services (LMS), a 33,000 ton diesel and heavy fuel bunkering facility near the Port of Colombo, is inspected annually by SGS to qualify for certification by the Colombo Ports Authority for compliance with all applicable International Maritime Organization requirements, including the MARPOL convention, the International Ship and Port Facility Security Code, the Safety of Lives at Sea Convention (governing the operation of the three LMS vessels of 1200 MT, 750 MT and 600 MT, respectively). Fire fighting systems are NFPA compliant and regularly inspected by the Colombo Ports Authority Fire Brigade. The LMS EHS system, inclusive of its Emergency Response procedures, has been developed in consultation with Shell and BP, for which LMS provides storage and distribution services. Personnel training and periodic testing of the system is coordinated with the Sri Lankan Marine Pollution Prevention Authority. The Colombo Municipal Council inspects the storage facilities annually as does the Central Environmental Authority with regard to the management of solid waste, effluent discharge, noise and emissions from the pump house boilers.
The Group’s Food and Beverage operations – Ceylon Cold Stores and Keells Food Products Limited – which produce carbonated beverages, ice creams and processed meats, are certified ISO 9001 and HACCP compliant and apply Total Performance Maintenance systems including Kaizen and 5S to all operations.
Of the Group’s nine tea factories, which account for 2.5% of Sri Lanka’s approximately 300 million kg annual production, five are certified ISO 9001, ISO 22000 and HACCP compliant.
Of the Group’s Transportation services, Walkers Air Services (Airlines Division) and Mackinnons American Express Travels are certified ISO 9001/9002 compliant.
South Asia Gateways Terminal in the Port of Colombo, which handles over 1.4 million containers per year, maintains ISO systems for quality and environmental management and occupational health and safety standards.
In addition to its own internal EHS management and reporting, the Group’s hotels and resorts are audited on a regular basis by the tourism industry, including Thomas Cook and Kuoni. These audits are respected throughout the industry as assurance of the quality, safety and environmental responsibility of the operator.
Organization:
All business units maintain an EHS monitoring and management structure per ISO standards, inclusive of regular staff training and emphasis on continuous improvement of performance. All business units within a specific sector report on financial, environmental and social performance to an executive vice president responsible for that sector. Information is consolidated and highlights are presented to the Board by a designated Director for Corporate Social Responsibility in the form of an annual Sustainability Report. The Group retains Ernst & Young to audit and verify the content of the Sustainability Report.
Community Engagement:
The Group endeavors to ensure effective communication of its performance, principles and policies to all stakeholders – employees, customers, suppliers, investors, the Media and the public. Engagement with the public is undertaken through a corporate website as well as the Media. The Group website (www.keells.com/) provides timely and accurate information targeted to all Stakeholders. Media releases are issued and audio visual presentations are disseminated on the performance of the Group as well as significant achievements and developments in English, Sinhala and Tamil languages to reach a wide cross section of the Group’s Stakeholders.
Human resources and working conditions:
IFC’s assessment considered the company’s operations with regard to fair, safe and healthy working conditions in construction and operation of facilities. The Group employs more than 7,600 full time staff and another 1,700 contract staff in all its business units as of the end of 2006. In addition, Ceylon Cold Stores links together 200 distributors and 74,000 retailers in a commercial network that, by company estimates, generates more than 150,000 jobs.
Human Resource Policy and Management:
The JKH HR policy is consistent with the ILO declaration on fundamental principles and rights at work. The HR policy includes components related to: guidelines for recruitment, selection and continuity in service; standardized skill competencies; performance appraisal; career progression; professional development; rewards and recognition; and professional ethics.
The Group maintains a centralized HR management system under the supervision of a Group President. The HR policy is communicated comprehensively to employees during their induction. All information relevant to employees with regards to HR processes such as recruitment, selection and performance management is available on the Group-wide Intranet. The HR structure facilitates the constant upgrading of HR practices in the Group in line with the best practices of Fortune 500 companies. Salary and benefit packages for all employees are competitive and reviewed annually.
Worker’s Organizations:
The Group’s workforce is represented by six trade unions including the Ceylon Workers Congress and the Ceylon Mercantile Union. Collective bargaining agreements are maintained with each of these trade unions in the relevant industries governing working hours, leave, remuneration, dispute procedures, disciplinary procedures and benefits.
The Group maintains a Joint Consultative Process and Group-wide Problem Solving Mechanism that address and quickly resolve employee concerns at all levels without unnecessary escalation. A number of the Group’s companies are also members of the Employee Mediation Services Centre for the Settlement of Industrial Disputes and Employee Disputes under the auspices of the Employers Federation of Ceylon.
Retrenchment:
There is no retrenchment associated with IFC’s investment in the company.
Occupational Health & Safety
The Group follows all national and local statutes governing the protection of the workforce. High standards of workplace health and safety are maintained by each operating unit in accordance with ISO standards for monitoring, reporting, corrective action and continuous improvement.
All Group company operations that require the handling of potentially hazardous materials (e.g., fuel oil, laundry chemicals, water treatment and cooling tower chemicals) have relevant safety signage posted in the workplace as well as Material Safety Data Sheets.
The Group adheres to a strict policy against child labor and, as a signatory to the UN Global Compact, it upholds the principles governing the elimination of all forms of forced and compulsory labor and the effective abolition of child labor.
As noted above, high standards of workplace health and safety are maintained on the construction site of the Monarch and Emperor towers.
Pollution Prevention and Abatement:
IFC’s assessment considered the company’s operations with regard to efforts to optimize resource inputs, including energy efficiency and waste minimization practices as well as the storage, handling hazardous materials used in the construction and operations of facilities.
Pollution Prevention and Resource Conservation:
Sri Lanka’s Municipal Councils have the authority of regulating, permitting and monitoring water supply and drainage and solid waste management. The Central Environmental Authority has established the National Air Quality Standards (NAQS) and is the agency responsible for monitoring air emissions of industrial and semi-industrial units. The Sri Lankan NAQS and effluent standards are generally compatible with the World Bank Group standards.
Water Supply and Effluent:
Water supply for all existing JKH city hotels and retail facilities is sourced from the municipal water supply. The Colombo Municipal Council is responsible for maintaining the potable water supply to internationally acceptable (i.e., WHO) standards. No independent water testing or treatment is undertaken as part of the hotel or retail operations. The Group’s food processing operations maintain strict water quality standards and apply standard water treatment processes (e.g., carbon filtration and UV treatment followed by micro-filtration) to ensure quality. Hotel and resort operations outside of Colombo source potable water from their respective municipal supplies but apply standard water treatment processes to ensure quality. Water quality at these hotels is regularly monitored by in-house engineering staff. Water supply for Maldives resort operations follows standard desalinization, dosing and filtration procedures common throughout Maldives.
Energy Supply and Air Quality:
More than half of Sri Lanka’s energy supply is derived from hydropower and the majority of the balance is generated from oil-fired thermal power generation. The Group’s operating units rely exclusively on electricity supplied from the national grid. Many operating facilities (e.g., hotels, resorts, food processing units, tea factories) maintain back-up diesel generator sets but the national power supply is reliable. As such, operating logs indicate that these units are rarely utilized. The Central Environmental Authority, through its representation within the Municipal Councils, monitors emissions from all generators based on the performance results of routine test maintenance operations. A sample of records and permits maintained by a number of Group operating units (e.g., Cinnamon Grand, Trans Asia Hotel, Bentota Beach Hotel, Lanka Marine Services) indicates that the operating units fully comply with National Air Quality Standards.
Liquid Effluent:
All Group operating units within the jurisdiction of a Municipal Council typically discharge untreated wastewater and sanitary wastes directly to municipal sewer lines. The Colombo Municipal Council has recently imposed restrictions on waste water discharge by industrial and large scale commercial development. The Group’s Ceylon Cold Stores responded by constructing an 1100 m3 per day waste water treatment plant, and the Group’s Monarch and Emperor towers will include waste water treatment plants for each. Outside of the jurisdiction of Municipal Councils, operating units (e.g., tea factories) utilize self-contained septic systems.
Solid Waste:
The Group complies with all applicable statutory requirements for the handling and disposal of solid waste. Where appropriate, as in hotel and resort operations, solid waste is segregated, properly stored and removed by Municipal Authority contractors to sanitary landfills. Resort operations in Maldives dispose of non-biodegradable solid waste to the national landfill on Tilafushi Island near the capital island of Male.
Lanka Marine Services:
Lanka Marine Services (LMS) is a land-based marine bunkering facility that the Group purchased from the Sri Lanka Ports Authority in 2002. The site accommodates 12 tanks that have a combined capacity of 33,000 tons of Heavy Fuel Oil and Diesel. In addition, LMS clears, stocks and distributes barreled lubricants for most of the majors supplying Sri Lanka – Caltex, Exxon, Elf, BP, Shell and Castrol. Storage tanks are clustered in bunded areas on a base of bitumen and concrete that drain to oil separation sumps. All tanks have been refurbished since privatization by the internationally respected marine engineering firm Colombo Dockyards, an ISO 9000 company. (http://www.cdl.lk/company.php).
The facility’s firefighting system has also been upgraded since privatization.
LMS owns two double-hull tanker vessels of 750 and 1200 MT capacity, respectively, and charters a 600 MT double-hull vessel. Vessels are inspected on an annual basis for compliance with MARPOL safety standards by SGS. LMS EHS policy and practices have been developed in collaboration with Shell and BP inclusive of joint emergency response and spill containment drills that are conducted with the Sri Lankan Port Authority and the national Marine Pollution Prevention Authority:http://www.treasury.gov.lk/FPPFM/ped/pdfdoc/marinepollutionpreventionauthority/mppaar2002.pdf
The Colombo Municipal Council undertakes a public health inspection and systems audit of all storage facilities. The Central Environmental Authority issues an Environmental Protection license every three years based on annual inspections of solid waste management, effluent discharge, noise, boiler emissions and any proposed expansion or upgrading of facilities. LMS’ two tanker trucks are inspected and licensed by the Ceylon Petroleum Corporation for delivery of diesel and heavy fuel oil to smaller ports around the country.
Resource Conservation:
The Group has integrated efforts to conserve energy and reduce waste into all operations as part of its commitment to environmentally responsible performance, as reported through its annual Sustainability report. Through its adoption of ISO 14001 systems of environmental management, it monitors the environmental performance of all operations to ensure compliance with Central Environmental Authority standards.
For example, Ceylon Cold Stores commissioned an energy audit in 2004 that identified potential reductions of electrical and thermal energy by 10% in business operations. The Group’s tea factories have recently replaced metal fan blades of all leaf drying beds with lightweight carbon fibre blades resulting in significant savings in energy needed to drive the fans. The Group’s hotels and resort operations practice well established methods of resource and energy conservation through the utilization of compact fluorescent lighting, room key card activated lighting and air conditioning, voluntary limits on towel and linen laundering, use of “eco-friendly” laundry, kitchen and housekeeping cleaning agents, installation of heat pumps and solar panels for the production of hot water, phase out of chillers and refrigeration units utilizing ozone depleting substances, recycling of solid waste and use of treated wastewater for irrigation to conserve raw water. Jay Kay Marketing Services has replaced open island freezers at all Keells Supermarkets with closed freezers resulting in a 60% reduction in energy consumption. Keells Tours monitors vehicle emissions and carries out routine maintenance to ensure all vehicles meet National Air Quality Standards. John Keells Office Automation participates in the “Toshiba Go Green” program by recycling toner cartridges.
Community Health Safety and Security. IFC’s assessment considered the company’s operations with regard to the impacts of the construction and operations of facilities, including: movement of vehicles to and from construction sites, operation of construction equipment, containment of dust, noise and other nuisance factors; and control of public access to construction sites.
Crescat City Development:
The construction site at Crescat City (Monarch and Emperor Towers) is maintained to international standards by the EPC contractor, Singapore Pilings. The perimeter of the site is secure and access is strictly controlled around the clock by a locally contracted security service. Appropriate EHS controls are in place to protect pedestrians and traffic outside the perimeter of the site from falling debris and dust. The Crescat neighborhood is a high security zone where the residences of the President and the Prime Minister as well as a number of foreign embassies are located. Access to the area by construction vehicles is tightly controlled.
The Crescat development has been designed, built and outfitted in compliance with British Standards for fire precautions, fire detection, fire alarms and fire fighting as well as Sri Lankan fire regulations developed by the National Institute for Construction Training and Development.
Hotels, Resorts and Retail Outlets:
All Group properties, including the Boulevard shopping plaza at Crescat City as well as its hotels and resorts, are equipped with fire detection and fire fighting systems that are compliant with guidelines developed by the British Standards Institute. Each property has an emergency evacuation plan and drills are carried out on a biannual basis under the supervision of the local fire brigade. Resorts in the Maldives comply with national Life and Fire Safety requirements. All publicly accessible properties are monitored by locally contracted security service.
Food safety in all of the Group’s food processing, distribution and retailing operations is maintained in accordance with HACCP guidelines (see PS 1 for listing of HACCP-certified units).
All of the Groups retail outlets, including the 25 Keells Super Stores, as well as the restaurants in the Food Court of the Boulevard shopping plaza, are required to have a Life and Fire Safety inspection. John Keells Marketing Services retains a Life and Fire Safety Consultant to assess each new property acquired for development as a retail outlet.
Lanka Marine Services:
LMS maintains its own fire brigade to maintain and operate its NFPA-certified firefighting system. This team is backed-up by the Colombo Port Authority fire fighting service. Each of the LMS vessels meets the life and fire safety standards established by the International Maritime Organization’s Safety of Life at Sea convention as well as marine pollution prevention and control standards required by MARPOL. Twenty-four hour security of the LMS bunkering facility is maintained by a locally contracted security service. The same EHS and security controls are applied to the LMS ancillary operations in Galle and Trincomalee.
South Asia Gateway Terminal (SAGT):
The Port of Colombo is a high security zone to which access is tightly controlled from land and sea by the Sri Lanka’s armed forces. In addition, SAGT maintains its own security, employing 28 guards in two shifts. All containers entering and exiting the terminal by truck are mechanically scanned for radioactive materials as are a random sample of trans-shipped containers.
SAGT subscribes to the IMO’s International Ship and Port Facility Security Code, which requires monthly emergency response drills. SAGT collaborates with the Colombo Ports Authority to ensure adequate response to any accidents related to container ships in berth or on the terminal’s premises. SAGT is also fully geared and equipped to participate in the US Customs and Coastguard Mega Ports Initiative (MPI) and will begin scanning US bound and other transshipment containers when Customs are ready to commence.
Biodiversity Conservation and Sustainable Natural Resources Management. IFC’s assessment considered the direct impact of Group activities on biodiversity and natural resources is limited to its tourism services and resort operations, both in Sri Lanka and Maldives, and the outgrower activities that support its tea and food processing businesses.
The Group operates a 67 room resort at Yala in southern Sri Lanka adjacent to a national wild life park and provides support to park rangers in their visitor education and anti-poaching efforts. The CSR arm of the Group (John Keells Social Responsibility Foundation) is providing English language skills to park rangers to improve their communication efficiencies. It is also collaborating with the Central Environmental Authority and the Department of Architecture of the University of Moratuwa in developing a “Nature Field Center” in Rumassala, Galle, to sensitize visitors, particularly school children, about the natural resources and biodiversity of the area.
The outgrower programs of the Group’s companies promote sound agricultural practices that emphasize soil conservation and the judicious application of agro-chemicals.
Stakeholder Engagement
A number of the Group companies maintain supply chain relationships with a network of small farmers that provide sustainable livelihoods for rural communities around the country.
Jay Kay Marketing contracts with more than 500 suppliers for a variety of specialized vegetables, fruit and confectionary items for the Group’s hotel operations and supermarkets. The vegetable collection centre at Thambuttegama deals with over 30 farming families. Jay Kay Marketing is collaborating with the Department of Agriculture to provide extension and post-harvesting technical assistance to farming cooperatives in Haputale, Kandy and Gampola.
Ceylon Cold Stores (CCS) maintains outgrower contracts with 200 farmers in Aludeniya for the production of ginger for CCS’ signature brand Elephant House Ginger Beer. CCS provides technical support to improve quality and productivity of cultivation practices as well as small enterprise training to enable farmers to expand into other markets. CCS is piloting an outgrower program for vanilla to capture a portion of the market that is dependent on imported vanilla extract. Building on its well established Elephant House Ice Cream brand, CCS has entered into value addition arrangements with a dairy cooperative in Kandy to ramp up production of ice cream, yogurt and flavored milk drinks. CCS provides support for quality control and marketing to the cooperative.
Keells Food Products provides credit and technical services to a small number of pig farmers as part of its processed meats operations, and works with its poultry suppliers to help them improve product processing and distribution.
John Keells Tea Smallholder Factories Limited has a smallholder base of 13,500 farmers to whom the company provides free extension services and quality-assured fertilizers from its nine factories around the country.
The Group’s new BPO initiative, InfoMate Limited, is working with two NGOs, to support the development of the capacity of rural communities to provide BPO services as an alternative method of income generation (www.horizonlanka.org).
The Group considers these supply chain relationships as strategic business partnerships and not strictly a demonstration of corporate social responsibility, thereby ensuring sustainability in the long term.
The John Keells Social Responsibility Foundation (JKSRF), founded in 2005, is the main channel through which the CSR activities of the Group are carried out, primarily, in the areas of Education, Health and Sanitation, Community Development, Environmental Protection and Arts & Culture (Please refer the Sustainability Report for 2004/2005 and the Annual Report for 2005/2006 that contains a synopsis of the Sustainability Report for that period which has been copied to the project file). Following the December 2004 Tsunami, JKH established the Tide Relief Initiative (TRI) to provide emergency relief and long-term reconstruction assistance to the more than 40,000 Sri Lankans directly affected by the disaster. (IFC was a primary partner in the relief activities matching the Group’s donations towards a wide range of projects). Since the closure of TRI in March 2006, JKSRF has taken over and/or initiated long-term projects which go beyond supporting relief and funding rehabilitation to support for housing and reconstruction health care, livelihood restoration and primary education.
For further information please contact:
Mr. Krishan Balendra, Executive Vice President
Head, Corporate Finance and Group Strategy
130 Glenie Street, Colombo 2, Sri Lanka
Telephone: +94 (0) 11 242 1101
Fax:: +94 (0) 11 230 6160
E-mail: krishan.jkh@keells.com
Jay Kay Marketing contracts with more than 500 suppliers for a variety of specialized vegetables, fruit and confectionary items for the Group’s hotel operations and supermarkets. The vegetable collection centre at Thambuttegama deals with over 30 farming families. Jay Kay Marketing is collaborating with the Department of Agriculture to provide extension and post-harvesting technical assistance to farming cooperatives in Haputale, Kandy and Gampola.
Ceylon Cold Stores (CCS) maintains outgrower contracts with 200 farmers in Aludeniya for the production of ginger for CCS’ signature brand Elephant House Ginger Beer. CCS provides technical support to improve quality and productivity of cultivation practices as well as small enterprise training to enable farmers to expand into other markets. CCS is piloting an outgrower program for vanilla to capture a portion of the market that is dependent on imported vanilla extract. Building on its well established Elephant House Ice Cream brand, CCS has entered into value addition arrangements with a dairy cooperative in Kandy to ramp up production of ice cream, yogurt and flavored milk drinks. CCS provides support for quality control and marketing to the cooperative.
Keells Food Products provides credit and technical services to a small number of pig farmers as part of its processed meats operations, and works with its poultry suppliers to help them improve product processing and distribution.
John Keells Tea Smallholder Factories Limited has a smallholder base of 13,500 farmers to whom the company provides free extension services and quality-assured fertilizers from its nine factories around the country.
The Group’s new BPO initiative, InfoMate Limited, is working with two NGOs, to support the development of the capacity of rural communities to provide BPO services as an alternative method of income generation (www.horizonlanka.org).
The Group considers these supply chain relationships as strategic business partnerships and not strictly a demonstration of corporate social responsibility, thereby ensuring sustainability in the long term.
The John Keells Social Responsibility Foundation (JKSRF), founded in 2005, is the main channel through which the CSR activities of the Group are carried out, primarily, in the areas of Education, Health and Sanitation, Community Development, Environmental Protection and Arts & Culture (Please refer the Sustainability Report for 2004/2005 and the Annual Report for 2005/2006 that contains a synopsis of the Sustainability Report for that period which has been copied to the project file). Following the December 2004 Tsunami, JKH established the Tide Relief Initiative (TRI) to provide emergency relief and long-term reconstruction assistance to the more than 40,000 Sri Lankans directly affected by the disaster. (IFC was a primary partner in the relief activities matching the Group’s donations towards a wide range of projects). Since the closure of TRI in March 2006, JKSRF has taken over and/or initiated long-term projects which go beyond supporting relief and funding rehabilitation to support for housing and reconstruction health care, livelihood restoration and primary education.
For further information please contact:
Mr. Krishan Balendra, Executive Vice President
Head, Corporate Finance and Group Strategy
130 Glenie Street, Colombo 2, Sri Lanka
Telephone: +94 (0) 11 242 1101
Fax:: +94 (0) 11 230 6160
E-mail: krishan.jkh@keells.com
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**Information on IFC's Policy and Performance Standards on Environmental and Social Sustainability can be found at www.ifc.org/sustainability
IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.
For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.
Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.
IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.
Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.
Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.
Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.
Complaints can be submitted by any of the following methods:
CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.
IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.
For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.
Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.
IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.
Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.
Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.
Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.
Complaints can be submitted by any of the following methods:
- Online form: available at https://www.cao-ombudsman.org/
- Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
- Voice mail: +1 202 458 1973
- Email: cao@worldbankgroup.org
- SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627
CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.
This Environmental and Social Review Summary (ESRS) is prepared by IFC to disclose its findings and recommendations related to environmental and social considerations regarding potential investments. Its purpose is to enhance the transparency of IFC's activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this ESRS is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein.
It is distributed in advance of IFC Board of Directors' consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following ESRS is disclosed in accordance with IFC's Access to Information Policy (AIP).
The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.
It is distributed in advance of IFC Board of Directors' consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following ESRS is disclosed in accordance with IFC's Access to Information Policy (AIP).
The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.