26038 - Owens Corning II

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Environmental & Social Review Summary

Project Number

26038

Company Name

OWENS CORNING INDUSTRIES (INDIA) PRIVATE LIMITED

Date ESRS Disclosed

May 31, 2007

Country

India

Region

South Asia

Last Updated Date

Nov 30, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Aug 13, 2007
Signed : Aug 27, 2007
Invested : Feb 21, 2008

Sector

Glass and Glass Products (Including Glass and Mineral Wool)

Industry

Manufacturing

Department

Gbl Ind, Manufact, Agribus & Services

Project Description

Owens Corning (India) Ltd. (OCIL or the company), an existing IFC client, is the largest fiberglass manufacturer in India. The company has been expanding its manufacturing capacity from approximately 36,000 tons per annum (tpa) to 51,500 tpa at a cost of $39 million. The project comprises:

- rebuild, modernization & expansion of the existing glass melter,
- installation of additional downstream equipment to pull increased volumes of glass fiber, and
- energy and efficiency improvements.

Overview of IFC's Scope of Review

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

- consent to Operate from Maharashtra Pollution Control Board (MPCB);
- application for capacity expansion submitted to MPCB;
- recent annual environment statement filed with MPCB;
- recent monitoring reports for stack emissions, treated effluent, ambient air quality, ambient noise, workplace air quality, workplace noise and drinking water quality;
- recent annual return filed with Inspector of Factories;
- ISO 14001 and OHSAS 18001 EHS system manual;
- recent Annual Monitoring Report submitted to IFC; and
- Human Resource Manual.

The appraisal team also interviewed OCIL’s corporate and plant level operations, environment, occupational health, safety and human resources professionals. The appraisal included a site visit to the company’s existing plant at Taloja (near Mumbai) in the state of Maharashtra, India.

The following potential environment, health and safety and social aspects of the project were analyzed:

- environment and social assessment and corporate environmental, social, and health and safety management systems;
- community consultation, disclosure and engagement;
- labor and working conditions including management of occupational health and safety;
- pollution prevention and abatement (including management of resources like energy, water, hazardous and other materials;
- management of emissions, discharges, hazardous and other wastes);and
- management of impacts on ambient conditions.

E & S Project Categorization and Applicable Standard

The project is proposed in the existing plant premises at Taloja within Maharashtra Industrial Development Corporation (MIDC) industrial area and no land acquisition is involved. There are no resident communities in the immediate vicinity of the plant. The key social, environmental, health and safety impacts associated with the project will include:

- emissions to air and water;
- management of hazardous materials and wastes;
- labor working conditions, employee occupational health and safety during construction and operation.

In view of the project location, adverse impacts on environmentally sensitive areas are unlikely. The nature of operations is such that it is possible to readily design and implement engineering and management measures to mitigate adverse impact. Given that mitigation measures can be readily designed and any adverse impacts:

- are moderately diverse; are not likely to be irreversible;
- most likely will be limited to project site; and
- not likely to impact environmentally sensitive areas, the project has been classified as a Category B project.

Environmental and Social Mitigation Measures

The company already has adopted policies & practices that very significantly compliant in all material respects with host country Regulations, OC group standards and IFC’s standards. In tune with its philosophy of continuous improvement, the company has presented plans to address these impacts to ensure that the proposed project will, upon implementation of the specific agreed measures, comply with the environmental and social requirements - the host country laws and regulations and the IFC environment and social policies, IFC performance Standards (PS) and the World Bank Group (WBG)/IFC environmental, health and safety guidelines. The information about how these potential impacts will be addressed by the sponsor/company is summarized in the paragraphs that follow.

- PS1: Social and Environmental Assessment And Management Systems:

The company’s management proactively addresses environmental, social, occupational health and safety (EHS) aspects of their operations. The company has implemented a certified environment, occupational health and safety management system (EHSMS) based on ISO 14001 and OHSAS 18001 standards, which is well implemented on the ground. Under the EHSMS, well defined organizational structure and processes are in place and qualified professionals have been appointed to oversee EHS aspects associated with the company’s operations.

The company has a hazard and operability (HAZOP) process in place for existing critical operations and Project Safety and Environmental Plan (PSEP) process, which includes design safety review of projects. Based on the HAZOP and other hazard/risk identification processes, remedial measures have been developed and integrated into the business operating system. The company has prepared an emergency preparedness and response plan, which will be linked to the MIDC/local Disaster Management Authority emergency/disaster management plans.

In addition to the EHSMS, towards continual improvement and implementation of industry best practices, the company has adopted Owens Corning’s global:

- environmental score card process to benchmark its operations against other group companies on 22 environmental parameters including resource conservation, emissions and discharges;
- tools for assessment and improvement of safety management system effectiveness; and
- self directed team process, which has housekeeping and safety as two of the five foundations, with quality, cost and people being the other three.

The company has implemented a “six sigma” process including in the EHS domain area. Further, OCIL also has a dedicated function for continual improvement. The company has carried out social and environmental assessments for the project and will implement mitigation measures, which are adequate. The company has a comprehensive employee and contract worker training process in place including reward and recognition process for commitment to safety for Contractors. The self directed culture (SBL- Safety box side leader concept), ensures commitment and responsibility towards safety as a line responsibility. Further, safety performance is included as a metric in incentive plans for all employees. All employee and contractor participation is ensured through events like safety week celebrations.

- PS2: Labor and Working Conditions:

The company has documented Human Resource (HR) policies and procedures, which are communicated to all employees through the intranet. These include policies on:

- business conducts;
- shift schedules;
- leaves and public holidays;
- compensation;
- performance management and employee development;
- diversity;
- recruitment and selection;
- induction and placement;
- classification of grades;
- separation and superannuation; and
- employee benefits.

Further, the company adheres to the Owens Corning Code of Business Conduct which, among other aspects, articulates policies on:

- Environmental Health & Safety;
- Product Stewardship; Equal Opportunity;
- Non-Harassment;
- Non-employment of child labor and forced labor including application of these standards to suppliers and contractors;
- Reporting Business Code of Conduct Issues;
- Corrective Action; and
- Compliance with all applicable laws, rules and company policies.

Conditions of employment and wages and benefits are communicated to employees in the appointment letter. The company adheres to model standing order (conditions of work), which the company will display prominently at the Taloja plant.

No retrenchment is proposed under the project and the project is expected to create additional direct and indirect employment. While the company has a mandatory employee communication program in place, the company will review IFC Performance Standard 2 (PS2) provisions and upgrade:

- the employee grievance mechanism; and
- its disciplinary procedure, to make it consistent with IFC’s PS2 provisions.

The company employs security personnel that are outsourced. While OCIL has procedures in place to undertake background checks of security personnel, it is in the process of preparing detailed documented security procedures. OCIL will ensure that the security personnel procedures are consistent with IFC Performance Standard provisions.

The company manages occupational health and safety through a management system certified to OHSAS 18001 standards. Safety is embedded in the corporate culture. The company’s mission, HR policies and performance appraisal system, lay due emphasis on occupational health and safety. The company’s organization and responsibility structure for managing occupational health and safety is adequate. Industrial Hygiene studies are undertaken by the company and workplace air quality/condition monitoring is undertaken. The use of personal protective equipment (PPE) is appropriate and based on the nature and risk of employee exposure to hazardous conditions. The company will, within a timeframe agreed with IFC, develop an action plan, for implementing engineering measures to maintain workplace air quality within recommended threshold values, as per IFC’s occupational health and safety guidelines. An annual health surveillance program is in place, which covers all employees. The company has processes in place to ensure that labor contractors meet national labor laws. Further, the company has a vendor audit and development process in place to ensure that vendors comply with national labor laws, and will also audit vendors/contractors on safety aspects.

- PS3: Pollution prevention and abatement:

OCIL manages environmental aspects and impacts through its environment management system, which is certified to ISO 14001 standards. The company has identified key environmental aspects and potential significant impacts of the project and addressed these in the project design. The company has assessed, and is managing, impacts arising out of pre-construction and construction phases. OCIL will, in the EHSMS, include procedures for management of EHS impacts due to decommissioning of equipment/facilities. The company has a dedicated continuous improvement team, which has identified opportunities for improving energy efficiency of the operations. Excess oxygen in flue gas is controlled and the company has also shifted from use of calcium carbonate as feedstock, to calcium oxide.

Towards water conservation, the company has installed rainwater harvesting; reuses nearly 40% of the treated wastewater on premises; under the project will install a reverse osmosis and ultra-filtration plant to recycle or reuse 100% of the treated wastewater. Further, glass fiber waste is being processed by the company and sold to vitrified tile makers.

The primary source of electrical energy is grid electricity with standby diesel generator (DG) sets. Direct energy is also consumed in the furnaces and boilers, which have low sulphur heavy stock (LSHS), Light Diesel Oil (LDO) and propane as the primary fuel. The company proposes to shift to natural gas as its primary fuel and will phase-out use of liquid fuel within one year.

The company has a monthly monitoring program for:

- emissions to air;
- ambient air quality; and
- ambient noise levels.

The emissions to air from DG set, furnaces and boilers meet both host country and IFC’s emission norms. The company is also considering implementing oxy-fuel burners to further reduce NOx emissions. Around the plant boundary, at some locations in ambient air, while particulate matter exceeds IFC’s norms, SO2 and NOx levels remain within host country and IFC limits. The company will identify causes for high particulate matter in ambient air and implement remedial measures, where relevant and applicable.

Ambient noise levels are within IFC requirements. Material impact on ambient air quality, ambient noise levels and ambient water conditions is not expected due to the project. The company uses R22 in air-conditioning/HVAC units. The company will ensure that the refrigerant used in chillers/air conditioning system and gases in fire extinguishers comply with the Ozone Depleting Substances Rules set by the GOI under Montreal Protocol requirements.

Water is sourced from Maharashtra Industrial Development Corporation (MIDC) supply and water consumption is expected to fill on account of the project from the present 840 m3/day to less than 200 m3/day due to recycling of treated effluent. The Plant has an effluent treatment plant (ETP) comprised of equalization cum neutralization, flash mixers, flocculator, primary settling, lamella, aerobic treatment, sludge thickeners, filter press, chlorination, pressure sand filter and activated carbon filter. Treated effluent is partially used in the process and in irrigation on the company premises. The balance of treated effluent is then sent to a CETP (common effluent treatment plant). The company intends to become a zero discharge facility under the project with:

- stream segregation;
- addition of ultra filtration and RO or other combination.

The RO rejects are proposed to be sent to the CETP but the company will evaluate the possibility of evaporation of RO rejects, with disposal of solids in a secured land fill. Sewage is treated through septic tank and soak pit. Emissions and discharges from existing and proposed facilities will continue to meet IFC and host country norms. The company generates hazardous wastes including waste oil, ETP sludge, insulation waste and including other wastes like process glass waste. The ETP sludge, insulation waste and process glass waste are being disposed of in a secured land fill. Management of hazardous materials, hazardous wastes and other wastes is consistent with IFC guidelines on Hazardous Materials Management.

Stakeholder Engagement

OCIL, actively participates in Owens Corning Limited’s global employee volunteering program. OCIL volunteer teams and individuals have been recognized by OCL for outstanding volunteering work. OCIL’s volunteering program targets support to institutions offering health services. The company’s EHS team undertakes safety awareness enhancement programs for students from nearby schools. The company currently does not have a formal community engagement process. The company will, within a timeframe to be agreed with IFC, develop and implement a community engagement process consistent with IFC’s performance standard requirements, which will eventually be embedded in the EHS Management System.

The company will publicly disclose this ESRS at:

Taloja Manufactures Association
Plot No-21
Opposite Deepak Fertilizer
Taloja MIDC
Dist -Raigad

Time: 10.00 am - 5.00 pm

All inquiries and comments about the project may be directed to:

Mr. Satish Kulkarni, Managing Director
Owens Corning (India) Ltd.
Alpha Building
7th Floor, Hiranandani Gardens
Powai, Mumbai 400 076
India

Telephone: +91 22 66681700
Fax: +91 22 66681701

Client Documentation

File Name	Actions
Final OCIL II ESAP May 31 2007.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).

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.

Projects

Environmental & Social Review Summary

Project Description

Overview of IFC's Scope of Review

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

Stakeholder Engagement

Client Documentation

Similar Projects

Projects

Environmental & Social Review Summary

Project Description

Overview of IFC's Scope of Review

E & S Project Categorization and Applicable Standard

Identified Applicable Performance Standards

Environmental and Social Categorization and Rationale

Environmental and Social Mitigation Measures

Environmental and Social Mitigation Measures

Stakeholder Engagement

Stakeholder Engagement

Press-Release

Related SII

Client Documentation

Similar Projects

Information on E&S Complaints and Grievance Mechanisms

Disclaimer