25740 - Sarten

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Environmental & Social Review Summary

Project Number

25740

Company Name

SARTEN AMBALAJ SANAYI VE TICARET ANONIM SIRKETI

Date ESRS Disclosed

Apr 30, 2007

Country

Turkiye

Region

Central Asia and Turkiye

Last Updated Date

Nov 30, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jun 14, 2007
Signed : Jun 15, 2007
Invested : Jun 28, 2007

Sector

Metal Can and Other Metal Container (Including Aluminum Beverage Cans)

Industry

Manufacturing

Department

Gbl Ind, Manufact, Agribus & Services

Project Description

Sarten Ambalaj Sanayi ve Ticaret A.S. is an established family-owned Turkish company specializing in manufacturing small and medium-sized (50 milliliters – 30 liters) tin cans. In addition, it makes a range of plastic containers of similar sizes, as well as tin and plastic covers for cans and jars. Sarten is Turkey’s largest supplier of:

- containers for food products,
- aerosol cans and
- oil cans.

Sarten client base includes prominent domestic and multinational companies, such as BP, Colgate-Palmolive, Mobil, Nestle, Shell, Unilever, and Danone.

Based in Istanbul, Sarten has eleven plants. The plant locations include the cities of Izmir and Adana, as well as the smaller Turkish towns of Corlu, Silivri, Gebze, Gemlik, Manisa, and Karacabey in Turkey. In addition, the company has facilities in Pleven (Bulgaria) and is establishing a facility in Bucharest (Romania), expected to start production around June 2007. The plants are located in proximity of the company’s main clients, which reflects Sarten’s strategy to follow the geographical expansion of its key customers in growing industries such as food, oil and manufacturing.
The project is to finance Sarten’s capital expenditures in Turkey, the building of a new production facility in Russia and the refinancing of its existing debt for a total cost of approximately $50 million.

Overview of IFC's Scope of Review

The review of this project consisted of appraising technical, environmental and social information submitted by the company including a review of:

- The quality Manual;
- The 2007 noise Map 2007 for the Silivri Plant and a compilation of noise measurements at all Turkish facilities;
- The list of raw material, Electricity, LPG and Natural gas used at all facilities in 2004/2005/2006;
- The exhaust gas emissions at Chimney at Silivri , Manisa, Izmir facilities, 2005;
- The analyses of waste water at the Turkish Facilities for 2007;
- The list of treatment facilities used for waste water and details of the collecting firms in Turkey;
- A schedule for analysis of in door air quality at all facilities;
- A schedule for the ISO14001 certification of all facilities;
- A compilation of all accidents for the Turkish facilities, 2006;
- A compilation on personnel at all plants, 2007 and statistics on employees wages, ages, gender and educational level;
- The list of awards received from 1997 to 2006 for community development;
- The Human resource and social, environmental and cultural responsibility policy;
- Sarten personnel regulations, 2003 update.

The appraisal team interviewed the corporate and site operations managers, and site EHS managers. Further, the appraisal included site visits to the Silivri, Gebze, Gemlik, Manisa, and Petpak facilities in Turkey with site visits in Bulgaria, Russia and Romania.

E & S Project Categorization and Applicable Standard

Applicable performance standards (PS):

- PS1: Social and Environmental Assessment and Management;
- PS2: Labor and Working Conditions;
- PS3: Pollution Prevention and Abatement; and
- PS4: Community Health, Safety and Security.

The relevant PSs have been provided to and discussed with the client as with the relevant IFC Environmental, Health and Safety (EHS) Guidelines: General EHS guidelines, draft August 2006; Metal, plastic and rubber products manufacturing, guidelines, draft March 2007.

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 which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.

Environmental, social, health and safety issues associated with this project include:

- Air emissions and effluent disposal;
- Site material storage and handling;
- Solid and hazardous waste management and disposal;
- Housekeeping and occupational health and safety;
- Corporate capacity in environmental management;
- Sustainable community relations and initiatives and
- Labor and working conditions.

Environmental and Social Mitigation Measures

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 of the host country laws and regulations and IFC environment and social Policies and Performance Standards. The information about how these potential impacts will be addressed by the sponsor/project is summarized in the paragraphs that follow.

- Environmental and Social Assessment & Management:

All existing facilities were developed following environmental impact assessment (EIA) in compliance with local legislation and operational permits were provided prior to the start of operations.

Sarten’s facilities are all certified IS09001 with the Silivri facility certified ISO 14001 since 2006. The Gemlik and the Gebze facilities are also operated along IS0 14001 standards, but not yet fully certified.

The Gemlik facility is regularly audited and inspected by British Petroleum (BP).

For the extensions planned in Romania and Bulgaria, and the new facility in Russia, Sarten will carry out an EIA as requested by local legislation and in compliance with PS 1. IFC will review the ESIA for both extensions and the new facility in Russia and request additional study /information as necessary, as indicated in the Environmental Action Plan (EAP).

Management System and Organization:

As part of the ISO 14001 certification of the Silivri plant, Sarten has developed an Environment Management System ( EMS) that will gradually be expanded in order to achieve ISO 14001 certification of all its facilities by the end of 2012.

Environmental, social and health and safety issues are currently managed separately at each facility. As part of the implementation of the EMS for the entire group, Sarten has nominated an Environment Officer, who will report directly to Sarten’s senior management group, so that continuous improvement and instances of non-compliance can be addressed. An environment and quality manager has also being designated at each facility.

Training:

Sarten established a training program structure and schedule for new and existing staff. The program includes an induction program on orientation, quality, OH&S, and fire safety. External training programs are made available upon request from a manager for one of his staff members.

Monitoring and Reporting:

Sarten is currently monitoring its Silivri facility in accordance with ISO 14001. The facilities that are yet to be 1S0 14001 certified are also regularly monitored by the local authorities, as per the operational permits. In addition, Sarten’s facilities are regularly audited by its major clients (domains that are audited on top of product quality include OH&S, HR practices, training, ISO 9001 compliance, product traceability, transport). At each facility, OH&S meetings are carried out every month.

Labor and working conditions:

At present, the company’s total work force is 1,885 people.

Human Resources Policy and Management:

Sarten has a Human Resources policy and personnel regulations which specify the terms of employment and working conditions at the company. These include procedures for selection, hiring, training, promotion, resignation, lay-off and firing. It also specifies wages and benefits, working hours and overtime, leave and holidays. The human resources function is a corporate function and is managed centrally by the human resources manager. At each facility, there is an HR manager. All policies, procedures and guidelines follow Turkish labor law.

A review of the HR policy, and of the personnel regulations as well as discussions on site with HR managers indicates that Sarten facilities meet all PS2 requirements, including establishing, maintaining and improving employee-management relations; promoting fair treatment, ensuring compliance with national labor and employment laws; promoting safe and healthy working conditions; and protecting and promoting the health of workers. The policy also establishes a mechanism allowing grievances to be articulated and addressed.

Worker’s Organizations:

Around 30% of Sarten staff belong the Turkey Metal Union Workers Association; a member of the European Workers Union. In Romania and Bulgaria, workers are represented by elected delegates.

Non-Discrimination and Equal Opportunity:

Sarten’s HR Policy and Manual does not include language ensuring non-discrimination and equal opportunity for workers.

Retrenchment:

While there area no current plans for retrenchment, Sarten group would apply Turkish regulations, should this occur. These request detailed justifications for the retrenchment, a retrenchment plan, public disclosure and compensation for retrenched workers. These regulations also include procedures designed to ensure that any retrenchment is carried out in a manner that is non-discriminatory, equitable and transparent.

Protecting the Work force:

In line with national laws, the company does not employ child labor and is not involved in forced labor. A doctor is available on all of Sarten’s facilities, in compliance with Turkish regulations for companies with more than 50 employees. Employees are provided with relevant personal protective equipment (PPE), and were observed to be wearing appropriate PPE during the site visits. Medical checks are undertaken on an annual basis for employees and they include occupational hearing loss tests.

Occupational Safety and Health:

At Sarten, company-wide environmental, health and safety procedures are in place and monthly OH&S meeting take place at all facilities. In addition, monthly fire drills are carried in house and OH&S training is carried out every 3 months These procedures will also be implemented at the extensions and for the new facility construction and operational phases. OH&S issues will be jointly managed by Sarten and the primary construction contractor and tender documents for construction will include reference to the EMS to be implemented during construction and will include specific environmental, health and safety (EHS) provisions. Sarten has also provided statistics on rates of injury and work related fatalities. No fatality has been encountered on any of the facilities since they were taken over by Sarten or since they opened under Sarten’s management. All employers are submitted to medical check twice a year in addition to an initial medical check prior to the start of employment. Sarten is also compliant with requirements from the Turkish Health Ministry, for air emissions and for the manufacturing of food containers.

There are currently no measurements of in-door air quality although solvent based paints, lacquers and resins are being used. Measurement of in door air quality will become compulsory in Turkey within the next 2 years and Sarten has agreed, as part of the action plan, to carry out such an audit, first at the Karacebey and Manisa facilities and gradually at all its facility, from 2007 to 2010 and will establish a schedule for implementing the audit recommendation in case of non compliance with IFC’s

- Pollution Prevention and Abatement:

Chemical Storage:

At all the facilities, paints and chemicals are stored in locked and well ventilated storage rooms, in compliance with the chemical products MSDS sheets, and empty chemical containers are send back to producers for refill. Sarten is also certified for transportation of hazardous chemical and is regularly inspected by the Turkish Standard Institute as well as by Bureau VERITAS, BVQ.

Resource Conservation:

Sarten’s facilities receive power from the local grid, and Sarten is currently studying the possibility of powering some of its plants via wind renewable energy. The R&D department of Sarten has also recently developed new tin can templates that lead to an 11 to 14% reduction of raw material. Wooden pallets for products delivery are recycled in house for re-use. At the Silivri plant, used water is recycled through a reverse osmose plant and re-used on site.

Water is obtained from municipal sources and all of Sarten’s processes are water free.

Air Emissions:

Emissions from stacks are measured annually and submitted to the local authorities. Review of the 2005 results of the Turkish facilities indicate full compliance with Turkish standards and compliance with IFC’s guidelines for Manufacturing of plastics, rubber and metal ( Draft march 2007), except for VOC level at one of the facilities. As part of the action plan, Sarten has agreed to provide IFC with a compilation of data for all its facilities and to design mitigation measures for parameters exceeding IFC’s guidelines. At the Silivri plant, an exhaust gas incinerator has recently been installed to better protect local communities close to the plant.

Waste:

Small quantities of hazardous waste are produced at Sarten’s facilities. They are stored on site, in specific containers and annually collected by licensed collectors for final disposal at Izaydas, a licensed hazardous waste treatment company. Similar procedures will be implemented on the facilities to be extended and in the new plant in Russia when such facilities become available and plans for adequate Hazardous Waste Management will be part of the EIA to be submitted to IFC. Non-hazardous wastes such as waste paper, card board and processing metal and plastic waste are recycled on site or collected by/sold to licensed vendors. Industrial waste water is sent to licensed treatment plants, sewage to municipal treatment plants. All plastic waste is recycled into the process; other solid waste is evacuated by the municipality to the local licensed landfill. Run off water is collected and send either to a licensed firm for treatment or to the municipal sewage system. Similar standards will be followed for the extensions and the new facility in Russia, details of which will be presented as part of the EIA, as necessary.

Fire and Safety:

Emergency response programs are implemented in all of Sarten’s facilities, including fire, earthquake and flooding emergencies. There is adequate fire fighting equipment onsite and it is properly maintained. Fire prevention and emergency response are included in all employee trainings. Sarten conducts monthly fire drills.

Community Health, Safety & Security:

To date and since its creation, the company has had no record of negative impact on the community.

At IFC’s request, Sarten has designated, at each of its facility, contact persons within the organization who will be responsible for receiving and responding to questions, concerns or complaints raised by nearby communities or other stakeholders. The contact details (phone number and email address) for these persons will be displayed prominently on the signage at facilities entrances.

Stakeholder Engagement

As part of its policy on social responsibility, Sarten has carried out a series of actions, mostly at its Silivri facility, the birth place of its founder. Actions include tree planting in urban areas and along the highways (6000 trees over the last 10 years and 1 of Sarten staff is an agricultural engineer, fully dedicated to this program), building a kindergarten, providing equipment for schools and providing night illumination of the ancient Sinan bridge that is one of the major cultural heritage of the city of Silivri. For such actions, Sarten has received several awards from the community. In Bulgaria, Sarten recently donated a set of beds to the local hospital. Sarten has agreed to further develop its community engagement process at all of its facilities, within a timeframe to be agreed with IFC.

Environmental documents will be made available at the following locations:

Sarten Silivri plant
Semizkumlar Kinali Mevkii 34947
Silivri, Istanbul
Turkey

Telephone: +90 212 711 71 50
Fax: +90 212 711 60 68
Website: www.sarten.com.tr

For more information please contact:

Mr. Adnan Aykol, Finance Manager
Barbaros Bulvari, No:38/7 80700 Balmumcu Istanbul
Turkey

Telephone: +90 212 275 7660
Fax: +90 212 272 34 17

Client Documentation

File Name	Actions
EAP final Sarten.pdf

**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:

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).

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Environmental & Social Review Summary

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Environmental and Social Mitigation Measures

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