26098 - Standard Profil 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

26098

Company Name

STANDARD PROFIL OTOMOTIV SANAYII VE TICARET ANONIM SIRKETI

Date ESRS Disclosed

May 18, 2007

Country

Turkiye

Region

Central Asia and Turkiye

Last Updated Date

Nov 30, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jun 21, 2007
Signed : Jun 25, 2007
Invested : May 2, 2008

Sector

Motor Vehicle Parts

Industry

Manufacturing

Department

Regional Industry MAS MCT

Project Description

Standard Profil is the largest manufacturer in Turkey of automotive sealing systems, such as door and trunk seals, and window gaskets. These seals are manufactured by extrusion of a rubber profile, often supported by a core of metal or other material, and then cutting to size, molding to join and further shape ends of profiles, trimming and packaging. The Turkish plants also have rubber compounding and milling operations, while ready-prepared rubber is sent from Turkey to the Bulgarian operation.

The project entails addition of profile extrusion, molding and trimming capacity to meet increasing demand for Standard Profil’s products.

Overview of IFC's Scope of Review

IFC’s review included site inspection visits to both Standard Profil (SP) factories in Düzce, Turkey and the new factory in Stara Zagora, Bulgaria and review of environmental data provided to describe operations at the three factories. Discussions were held with relevant Standard Profil staff to establish how SP manages environmental, health and safety and Human Resources issues at the three sites. Standard Profil’s expansion plans were discussed to evaluate how the company’s environmental impacts may change with time.

E & S Project Categorization and Applicable Standard

While all Performance Standards are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards:

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

The expansion projects will be developed on land already owned by SP, which in both Turkey and Bulgaria is in established light industrial and commercial zones. Project impacts related to land acquisition, biodiversity, indigenous peoples and cultural heritage are not therefore expected.

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 - the host country laws and regulations, IFC’s Performance Standards on Social and Environmental Sustainability and applicable environmental, health and safety guidelines. The information about how these potential impacts will be addressed is summarized in the paragraphs that follow:

- Social and Environmental Management Systems:

Standard Profil has established social and environmental management systems at all three of its factory sites. “SP2”, the largest factory site in Düzce received ISO 14001 certification in 2002 and has since been recertified until 2008. The second but older Düzce site, “SP1” expects a certification audit in May 2008, while the Bulgarian site expects to receive ISO 14001 certification during 2008. All sites have comprehensive monitoring of work place conditions, ambient air quality and point source emissions to air and water, undertaken at least on an annual basis. In addition, a quality management system, certified to TS 16949 is present at all sites, and this governs certain environmental, occupational health and safety and human resources issues.

- Social and Environmental Assessment:

Assessment of the expansion project in Turkey and the new project in Bulgaria followed the requirements of the regulatory authorities in the two countries. In Turkey, basic project details were described to the local authorities who reviewed the information provided and determined that the expected impacts did not warrant a full Environmental Effects Evaluation. In Bulgaria, the proposed building and process machinery designs were discussed with the local authorities who reviewed the information provided and determined that the project did meet its environmental requirements. In both cases, local authorities are contacted when expansion of production is anticipated.

- Labor and Working Conditions:

Labor practices within Standard Profil meet the legal requirements of Turkey and Bulgaria respectively, and these in turn meet IFC’s requirements under Performance Standard 2. Key aspects of Standard Profil’s labor and human resources management are now discussed.

- Human Resources Policy:

Standard Profil does not have a formal and written HR policy; the policy is under development and will be produced in written form during 2007. However, the HR procedures that are in place, supported by written materials which are handed to all employees do amount to an HR policy which is appropriate to the company’s operations.

- Working Relationship:

In both countries, a formal contract of employment between the company and the employee, which is signed on the first day of an employee’s employment with copies retained by both sides, documents the employment relationship. These contracts include a job description and define the starting salary and rights and responsibilities of employer and employee. In Turkey every new employee is given a copy of the company rule book, which sets out rules of employment within the company and is designed for compliance with Turkish law. In Bulgaria, all new employees attend 1 week of induction training which includes the company’s HR-related rules.

- Working Conditions and Terms of Employment:

These are established with reference to legal requirements in Turkey and Bulgaria, and therefore differ slightly between the countries. In Turkey normal working hours are 45 per week, worked from 8am to 6pm five days/week for white collar staff, and 6 shifts of eight hours or blue collar staff. Bulgaria has a 40 hour work week, with white collar staff working from 8am to 5pm for five days/week, and blue collar staff having five shifts of eight hours. Annual leave is provided in Turkey at 14 days after one year of employment, 20 days after five years and 26 days after 15 years. Twenty days/year annual leave is provided in Bulgaria. In both countries, national holidays add to this figure. Overtime working by blue collar staff is recorded and paid at 150% of basic pay or 200% when shift working requires work on holidays.

Salaries are reviewed, 6 monthly for Turkish blue collar workers, and annually for Turkish white collar workers and in Bulgaria, and inflation rises plus a performance-related rise are awarded. Because of the performance-related element of salary review, salaries are not collectively negotiated. Entry-level salary in Turkey is around $300 equivalent monthly, broadly the national minimum wage, plus one month bonus for every three months’ work. In Bulgaria, the entry-level salary is at around $130/month exceeds the minimum wage, while the average salary for blue-collar employees at $260 / month is broadly equivalent to the national average salary.

- Workers’ Organizations:

Standard Profil does not have a formal relationship with a trades union in either country, but it does comply with national law in permitting a trade union. Some staff in Turkey are union members: in Bulgaria, staff have enquired about joining or organizing a union, and have been told by management that if they wish to form a union, then they can do so.

- Non-Discrimination and Equal Opportunity:

Standard Profil does not discriminate on the basis of personal characteristics unrelated to job requirements in selection of candidates for employment or in advancement within the company.

- Retrenchment:

Since the company is expanding production, no retrenchment is anticipated.

- Employee Grievance Mechanism:

Both the Turkish and Bulgarian operations are subject to an annual Employee Satisfaction Survey, undertaken by the company. This takes the form of a written questionnaire: this is distributed to all staff who are then asked to complete an return the survey to special boxes. This survey has typically had a response rate of 60-70%, and themes if any arising from the survey are taken up by plant management.

In addition to this formal feedback mechanism, all staff are encouraged to discuss grievances with supervisors or production managers, and a suggestion scheme operates to solicit suggestions and comments from the workforce.

- Protecting the Work Force:

SP’s youngest employee is 18 years old in Turkey and 19 years old in Bulgaria. In both countries, the minimum working age is 18, and SP does confirm ages of prospective employees by checking identify cards on offering employment.

- Occupational Health and Safety:

In Turkey, in 2006, SP recorded lost time accidents at a frequency of around 10 accidents per million man hours worked. In Bulgaria, which has simpler manufacturing operations, no accidents were recorded over around 500,000 man hours worked.
SP has comprehensive monitoring of workplace air temperature and quality and noise and these identify good working conditions. Of particular note, control of dust in the compounding areas at SP1 and SP2 is excellent.

SP has at both sites undertaken a safety risk assessment by workplace, and has identified necessary improvement items. This initiative will be supported by formalization of management of occupational health and safety issues. All three sites will achieve OHSAS 18001 certification of their occupational health and safety management systems by 2008.

- Emissions to Air:

Emissions to air occur both from utility systems and from process equipment.
At SP1 factory in Düzce, the main sources of emissions to air are the three oil-fired boilers which provide space-heating and process heating of two heated liquid bath heated-based extrusion lines. Measurement shows that SO2 emissions from these boilers exceeds IFC guidelines, though was compliant with Turkish requirements. Particulate emissions were not monitored, while NOx emissions were compliant with IFC and Turkish requirements. A fuel conversion project to natural gas firing is currently underway. When this project is complete, expected to be mid 2007, SO2 and particulate emissions will be substantially eliminated.

SP2 factory has three 2.2 MWe gas-fired engine-driven cogeneration systems. Emissions to air from these have been monitored and are compliant with IFC and local requirements.

Point source emissions from process plants, typically from gas-heated vulcanization tunnels used in the profile extrusion lines, and from silicone and flock coating cabins are measured. VOC emissions concentrations from silicone coating lines are within Turkish limits, and are not sufficiently large to require control for compliance with IFC guidelines. Particulate emissions are well controlled.

In Bulgaria, space heating is by small indirectly-fired gas heaters. These are too small to require measurement of emissions.
One profile extrusion line, moved from Düzce is currently undergoing commissioning, and represents the first point source of emissions to air from the project. Emissions will be measured, and action taken if high, but measurement of similar production systems in Turkey (see above) suggests that emissions control will not be necessary.

Greenhouse gas emissions arising from use of energy in the Turkish and Bulgarian factories amount to around 20,000 tonnes CO2 equivalent annually. In Düzce, the company has implemented a number of energy efficiency projects, concentrating on use of electronic variable speed drives of pumps and high efficiency process heating systems. Specific energy consumption ratios are tracked and show a year-on-year improvement.

- Effluent Treatment and Disposal:

SP1 factory in Düzce has a combined sanitary waste and process waste water treatment system, from which effluents meeting IFC and Turkish requirements for parameters monitored.

SP2 factory in Düzce has separate treatment of process and sanitary waste waters, and discharges from these treatment systems are combined before leaving site. Discharges, for parameters monitored, are compliant with IFC and Turkish requirements.

Neither site measures coliforms in discharged waste water and has undertaken to do this.

Sanitary waste water in the Bulgarian plant is treated in a package plant, but does not meet IFC standards for discharge of BOD, COD or TSS. The city of Stara Zagora, and the industrial/commercial estate where the factory is located are implementing an effluent collection and treatment project which is due for completion in early 2008. When complete, this system will accept and treat waste effluents from the factory.

- Solid Waste Management:

In both Düzce and Stara Zagora, solid wastes are collected and segregated by Standard Profil, and collected for recycling by authorized waste handling companies.

Stakeholder Engagement

The three factory sites are located at the edge of established industrial zones, and with industrial and commercial rather than residential neighbors. Community engagement has mainly comprised informal discussion with these neighbors about the status of the industrial developments.

Translations of this ESRS are available and may be viewed by contacting the following persons:

At Düzce:
Mr Kadir Muratoglu
Total Quality and HR Manager
Standard Profil
Konuralp Hammamalti Mevkii
81620 – Düzce, Turkiye.

At Stara Zagora:
Mr Koycho Koychev
12 Nicolai Petkov Street
Stara Zagora 6000,
Bulgaria.

**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

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

Similar Projects

Information on E&S Complaints and Grievance Mechanisms

Disclaimer