25765 - Bauducco I

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Environmental & Social Review Summary

Project Number

25765

Company Name

Pandurata Alimentos Ltda.

Date ESRS Disclosed

Apr 10, 2007

Country

Brazil

Region

Latin America and the Caribbean

Last Updated Date

Jun 3, 2021

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jun 22, 2007
Signed : Jun 27, 2007
Invested : Jan 3, 2008

Sector

Other Food

Industry

Agribusiness and Forestry

Department

Gbl Ind, Manufact, Agribus & Services

Project Description

The company has an investment program for 2007-2010 to expand its production and logistics capacity. The investment program includes:

- the expansion of its Extrema (state of Minas Gerais) and three of its Guarulhos (state of Sao Paulo) plants;
- the construction of a new distribution center and administrative offices in Guarulhos;
- the construction of a new plant, and
- incremental working capital.

Overview of IFC's Scope of Review

IFC’s review of this Category B project consisted of appraising Pandurata Alimentos Ltda.’s (or the company) own assessment of its environmental, occupational health and safety, labor and social development information as per:

- Prior to IFC’s appraisal following:

- Preparation of a preliminary environmental and social questionnaire (AIS) answering to IFC’s main points for concern, which guided the client in the organization presentation and documents to be submitted during appraisal mission.

- During IFC’s appraisal the following actions took place:

- Presentation by the company of the proposed investment;
- Presentation by the company on the Human Resources policy and actions and on Occupational Health and Safety issues;
- Presentation by the company of the Social assistance/responsibility area;
- Site visits to all plants by IFC’s environmental specialist to evaluate both social and environmental issues. Photographs of all plants were taken.
- The company submitted statistics on occupational health and safety issues, as well as on more general labor and social responsibility issues
- Meeting with the company’s suppliers procurement and quality assurance team.

E & S Project Categorization and Applicable Standard

- PS1. Social and Environmental Assessment and Management Systems
- PS2. Labor and Working Conditions.
- PS3. Pollution Prevention and Abatement.
- PS4. Community Health, Safety and Security.
- PS5. Land Acquisition and Involuntary Resettlement

Applicable guidelines:

- General Environmental Guidelines (July 1998)
- General Occupational Health and Safety Guidelines (June 24, 2003)
- Guidelines for the Food and Beverage Processing (July 1, 1998)
- Life and Fire Safety Guidelines (December 2002)
- Hazardous Materials Management Guidelines (December 2001)
- Good Practice Note on Managing Retrenchment (August 2005)
- Good Practice Note on Non-discrimination and Equal Opportunity (January 2006)

Environmental and Social Mitigation Measures

The company has presented plans to address social and environmental issues identified during IFC’s appraisal to ensure that the proposed investment will, upon implementation of the specific agreed measures, comply with the IFC’s environmental and social requirements, the host country laws and regulations and IFC’s Performance Standards and environmental, health and safety guidelines. The issues, the potential impacts and how they will be addressed by the company are summarized below:

- PS 1: Social and Environmental Assessment and Management System

- The client does not yet have a formal Environmental and Social Management System (ESMS), to manage its environmental and social risks. The company has committed to develop and implement an ESMS according to IFC standards.

- Disadvantaged or vulnerable groups were identified in the area of influence as neighboring communities in the area of influence of the company’s facilities. There have been complaints of the noise from the facilities and heavy traffic of trucks in the area. Although these complaints have been dealt with by the company in the past by introducing noise reduction technologies and by installing a parking lot for the trucks, there is no standardized way for the community to get in touch with the company should new complaints arise. IFC will request that the company develops a standardized procedure for addressing community grievances.

- The company engages with communities on an ongoing basis through its Social Policy and Social Responsibility Unit and through the implementation of different social projects. The company, however, would benefit from a more systematic planning, monitoring and evaluation of results, which would enhance and help them evaluate the impact of their actions. IFC will help the company to strengthen its SPR Unit and their corporate social responsibility actions.

- The company already audits and ranks its suppliers according to technical issues. IFC has recommended and will help the company to enhance their suppliers auditing system, by ranking suppliers for best practice on social and environmental issues (particularly on child labor, slave labor and biodiversity conservation issues).

- PS 2: Labor and Working Conditions

- Occupational Health & Safety – The company already has an Occupational Health and Safety department developing mandatory programs such as PPRA (Environmental Risk Prevention Program), PCMSO (Occupational Health Medical Control Program), Ergonomics program, CIPA (Internal Commission for Accident Prevention), IPE (Individual Protection Equipment). No actions are required.

- Fire Safety and training – The company already has a well maintained structure of fire prevention, detection and fighting with smoke detectors (but not sprinklers) in the Industrial area, fire extinguishers and fire hoses (tested annually). The company also has a trained fire brigade in every plant, identified by a red cap and regularly trained in a special training site located at Extrema plant. No actions are required.

The company’s Human Resources area is properly structured. However, a few issues will be monitored closely in order to ensure compliance with IFC’s performance standards:

- IFC will request the write up of the company’s Human Resources policy, including clear internal grievance and disciplinary mechanisms, and the dissemination of this policy to all staff. IFC recommends that the company carries out periodical internal climate surveys.
- IFC will request that the company follows the Non-discrimination and Equal Opportunities Guidance Note. IFC will monitor the efforts of the company to comply with the disabled people’s quota as established by Brazilian law.
- IFC will request the company to follow the Retrenchment Good Practice Note should it decide to close down any of its factories, and submits to the IFC a Retrenchment Plan at the appropriate time.
- IFC will request that the company trains and ensures that third party employees are using IPE (Individual Protection Equipment) when inside the company’s premises.

- PS 3: Pollution Prevention and Abatement

- Solid and Liquid Waste

The plants generate various types of residues such as green and food wastes and wastes directly related to production such as packaging, recyclables (mainly paper and cardboard, plastics, plastic drums, metal drums, pallets and production waste). The waste is properly stored and part of it is disposed of in landfills (sludge, green waste and food), part recycled (paper and cardboard packages and plastic packages) and part is used as animal feed. No additional actions are required.

- Hazardous Material Handling and Storage
The hazardous solid waste is composed by the sludge from effluent treatment station which is disposed of in landfills, the solid waste from the health clinic which is incinerated and light bulbs, which are collected by a licensed company. No additional actions are required.

- Liquid Effluents

All plants treat their effluents according to the local environmental regulations. The BOD (biochemical oxygen demand), a parameter which indicates the amount of putrescible organic matter present in water, used as a measure of the degree of water pollution, is required by the Minas Gerais’state law to be controlled in the Extrema plant, with which the Company complies. In the São Paulo state, CETESB (the local environmental authority), doesn’t require a BOD control prior to discharge into the sewage system. Since the discharge does not interfere in the collection or treatment systems, given the small volume discharged per day (110 m3/day), and based on IFC guidelines, IFC will not require further treatment of the liquid effluents discharged in Guarulhos (Endres/Argentina and Bonsucesso) and Ipiranga.

- Air Emissions

IFC will not to require an annual measurement of the PM (Particulate Matter), SO2 and NOx, since the company will comply with the following requirements:

- As the less efficient source burns at a rate of 3.7 million BTU/hour, PM compliance may be demonstrated by maintaining the opacity below 20%. Opacity should be measured once a month, if possible at full capacity, prior to maintenance.
- Manufacturers’ performance guarantees will be obtained to demonstrate that the emissions guidelines for NOx are met.
- The Natural gas composition provided by Comgas (the local supplier of natural gas) is 89% methane, 6% Ethane, 1,8% Propane, 1,0% C4+, 1,5% CO2 and 0,7% N2. Since there is no sulfur in the natural gas used, there are no sulfur dioxide emissions (reference: http://www.comgas.com.br/conheca_gasnatural/conheca/composicao.asp?prn-true).

- Ambient Noise

The company is facing some minor problems with the noise outside the Endres/Argentina plant and has hired a specialized company to monitor and deal with ambient noise issues. IFC will monitor these developments to verify that they are in compliance with its guidelines.

- PS 4: Community Health, Safety and Security

The company reported that it has received complaints regarding disturbances resulting from the noise from the facilities or heavy traffic of trucks in the area of the plants. IFC will request that the company develops a standardized procedure for addressing such issues, as already outlined in PS 1.

- PS 5: Land Acquisition and Involuntary Resettlement

- Should the company decide to acquire land from households nearby any of its facilities, IFC will require that the company ensures that market value will be paid for them and that a “willing buyer willing seller” approach will be pursued.
- When the company decides to buy the land for the establishment of the new factory, it should follow PS 5 on land acquisition and manage risk through the ESMS.

Stakeholder Engagement

- The client has ongoing engagement with local communities through the Social Assistance and Responsibility unit. IFC will request that the Company develops a standardized procedure for addressing such issues.

- A SAC (Consumer Services Center) system is already in place and can be accessed through the internet: http://www.bauducco.com.br/bauducco.html or by phone on 0800 7011599 or by post:

Caixa Postal 11039,
CEP 05422-970.

Most complaints that come through the SAC are related to product quality.

- During the disclosure process of the Investment Program, the client will disseminate this Environmental and Social Review Summary and the Summary of the Proposed Investment at easy access locations nearby each of their units, at local points of interest and widely circulated newspapers. During the 30 day consultation, the client will take into consideration any inputs from communities or civil society entities.

The person responsible for all inquiries is:

Roberto Francisco
Financial Manager
Pandurata Alimentos Ltda.
robertof@bauducco.com.br
Phone: +55-11-2142-9438

**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).

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.

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