Key environmental and social issues are listed below. In addition, specific information is presented on the way SAV will address these impacts to ensure that the 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 Environmental and Social Performance Standards and the World Bank Group (WBG) environmental, health and safety guidelines. The information about how these potential impacts will be addressed by SAV is summarized in the paragraphs that follow. Further information is provided in the attached Environmental and Social Action Plan (ESAP), which has been agreed upon by IFC and SAV, and which will address any compliance gaps with IFC Performance Standards.
- Environmental, Health and Safety, and Social Assessment and Management Systems
- Integrated management system for social and environmental affairs, quality, and occupational health and safety management:
SAV has some elements of a comprehensive management system and was recently certified for SQF2000, and the company agrees that it needs to upgrade their management system to formalize and include social and environmental affairs, quality, and occupational health and safety issues associated with farming, crop financing, transport, and processing operations. SAV will develop an integrated management system at all their operations, based upon internationally recognized management systems (e.g. ISO 9001-2000, ISO 14000, and OHSAS 18000). The company will design the system to comply with Peruvian regulations and IFC policies and performance standards. SAV will need to appoint a qualified professional to the managerial position of environment and social affairs, responsible for environmental and social performance in all operations. SAV has developed a basic environmental management plan (PAMA) which will be updated to include all IFC guidelines and performance standards.
- Labor and Working Conditions
The company is committed to recruiting workers mainly from nearby communities. SAV’s agricultural workers work up to 60 hours a week during the high season, which is standard for the sector and in accordance with local labor regulations.
Currently workers are not unionized, but are allowed to form or join worker’s organizations and to bargain collectively. SAV ensures that child labor and forced labor is not used directly or through contractors. SAV procures artichoke, asparagus, and peppers from about 120 independent producers (approximately 1,800 has). These producers are supervised periodically by SAV’s technicians for production quality, but not for labor and OH&S aspects.
- Occupational health and safety:
An OH&S risk analysis by external experts is conducted every year. All employees are provided with training and personal protective equipment (PPE) relevant to their assignment. There are 4 fire and earthquake drills a year and 3 brigades have been created (fire, first aid, and evacuation). The company is proactive in preventing accidents, injury, and disease by minimizing causes of hazards. The company will update its OH&S policy for the plant and fields in accordance to international recognized standards (i.e. OSHAS 18001) and IFC OH&S guidelines and present an Action Plan detailing activities and budget. It should include an Emergency and Contingency Plan.
- Contractors and supply chain:
The company will develop more rigorous reporting requirements in order to ensure that contractors in all their operations and that suppliers are in compliance with:
- workers legal benefits;
- wages paid on time,
- safety regulations, and
- ILO Conventions 138 on Minimum Age, and 182 on Worst Forms of Child Labor.
- Evaluation and monitoring of work stations: ambient noise, temperature, and ergonomy:
SAV will be required to evaluate and monitor working stations for noise levels, submit a report to IFC, and implement mitigation actions if so required. Further, SAV will evaluate exposure to temperature, and conduct a study on ergonomy for the workforce in the processing lines, and submit the report to IFC. Mitigation actions will be implemented by SAV if so required.
- Catering service operations for employees:
SAV subsidizes quality meals for the workforce, and the dining areas are clean and comfortable. The field appraisal indicated a need for housekeeping improvement in the kitchen area. SAV will present and implement plan for IFC approval that will include:
- periodic health assessment for all cooks and support personnel working in the kitchen,
- use of protective garments to cover head and mouth,
- training on proper methods for washing and grease removal of plates, cutlery, and glassware, using antibacterial detergent, and
- adequate storage and handling of raw ingredients.
- Pollution Prevention and Abatement
Field operations include common practices for asparagus, pepper, and artichoke field production. For crop nutrients, chemical fertilizers and composted manure are applied. Only EPA and EurepGAP registered pesticides are in use, according to appropriate standard procedures for application. The company operates two processing plants, one in Viru and the second in Chincha. Main sources of emissions to the environment and the risk of environmental contamination come from the processing plants. These include process liquid effluents; and solid waste from the agricultural operations and processing. Pest and insects are typical to the crops grown in Peru by SAV. The main market failures to production are Prodiplosis longifila Gagné (Diptera: Cecidomyiidae) in asparagus, virus infection in pepper, soil nematodes, and Erwinia carotovora disease in artichokes. All these require collective action in Chavimochic as well as in Chincha, and SAV has taken a lead role at the “Producers Association” to coordinate technology acquisition for integrated pest and disease management.
- Air emissions:
SAV will conduct particulate stack emissions measurements for all operating boilers in all its operations, will compare projected levels to IFC General EHS Guidelines for ambient air concentrations, and will submit a report to IFC. If measurements exceed IFC limits, SAV will propose corrective measures, and agree with IFC a schedule to bring all emissions into compliance with IFC guideline requirements.
Effluents:
These include process liquid effluents; sanitary wastewater; solid wastes emanating from processing. No effluent treatment is currently implemented at SAV. Effluents are not used to irrigate SAV fields. Effluent data provided by the company indicates a high BOD (370 VS 50 mg/l), and total coliform bacteria (3,000,000 VS 400 per 100 ml). The company will present prior to disbursement a design plan for IFC’s approval to install an effluent treatment plant in Viru, and at the new plant to be constructed in Chincha, to ensure effluents are in compliance with Peruvian regulatory limits and IFC guidelines.
- Cleaner production audit at Viru to reduce water use and disposal:
SAV is concerned with appropriate natural resource use and intends to conduct a cleaner production audit to reduce water use. The study shall provide recommendations to reduce wastewater flows and will propose a plan to implement a water conservation program to reduce the impact on groundwater.
- Hazardous and non-hazardous waste management:
SAV has implemented a sanitary and industrial waste management plan, segregating all wastes for either disposal in a landfill or sale to legally authorized recycling groups.
- Pesticide use and management:
SAV relies on high technology inputs in their field facilities, including agrochemical use. The use of these products is well managed and controlled, and there is appropriate use of personal protective equipment, as well as appropriate levels of training on agrochemical management. Attempts to use integrated pest management is evident. The company has elements of an integrated pest management system (IPM), and some on disease management in place. In order to protect the environment, SAV will further upgrade this system through research and technology acquisition to formalize and create guidelines and procedures.
- Community Health, Safety and Security
In general, SAV’s operations pose little or no risks to local communities. Hazardous materials are handled well at the plant, their use is controlled, and no emergencies affecting the neighboring communities are expected. SAV coordinates with local fire fight units and civil defense (Defensa Civil) to respond to emergencies at the plant. In accordance with the ESAP, the company will put in place an Emergency and Contingency Plan as part of the OH&S Policy update.
- Security forces:
The company has its own non-armed workers in charge of controlling access to the plants and farms, and also does outsourcing of non-armed guards from a security firm (Total Security S.A). All guards receive training on emergency and security procedures and on how to respond commensurate with the risk or security issue at hand.
- Land Acquisition and Involuntary Resettlement
SAV follows the Peruvian law for all land acquisitions, and all transactions are done on a willing seller-willing buyer basis.
- Biodiversity Conservation and Sustainable Natural Resource Management
- Natural or critical habitat or endangered species:
There are no legally protected areas in the vicinity of any of SAV operations. SAV operations do not involve modification, conversion, or degradation of any critical habitats.
- Sustainable Water Resource Use:
SAV processing plant at Viru depends on groundwater sources extraction for water supply. The wells are currently at 50m depth. To ensure the sustainability of the water supply, the company will install remote control computer-based groundwater level monitoring tools in all wells to track future trends in groundwater availability.
- Sustainable agricultural practices and environmental assessment of suppliers:
SAV has a wide range of well written confidential guidelines on sustainable agricultural practices, and is strengthening their EurepGAP certifications. Their goal is to ensure similar world-class practices, which include environmental and social aspects, are applied to all suppliers. SAV will report to IFC on implementation of this plan as part of its regular annual reporting. SAV will collect and submit baseline data of their contracted suppliers. The assessment will be done once a year to obtain data on:
- contamination of soil and groundwater;
- integrated pest and disease control programs;
- detailed analysis of agrochemical use and management;
- use of PPE;
- storing and recycling of agrochemicals and packages;
- level of training on agrochemical use;
- triple washing of containers;
- improvements in occupational health and safety;
- improved quality assessment and monitoring of product; and
- waste management practices.
- Indigenous People:
The appraisal mission found no evidence of indigenous people in the area.
- Cultural Heritage:
The lands in Viru were handed to the company with 2 small pre-Inca archeological sites (huacas) already identified and delimited by the Peruvian National Institute of Culture (INC). SAV will limit transit of vehicles and farm machinery into these sites, and will implement a Chance Finds Procedure. In addition, the company will prepare an Archeological Survey and Protection Plan and will sign a letter of agreement with the INC to ensure that all existing or newly found archeological sites within their property will not be affected by business operations, in accordance to the attached ESAP.
