26688 - SnowmanII

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Environmental & Social Review Summary

Project Number

26688

Company Name

SNOWMAN LOGISTICS LIMITED

Date ESRS Disclosed

Aug 14, 2009

Country

India

Region

South Asia

Last Updated Date

Jun 3, 2021

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Dec 14, 2009
Signed : Dec 17, 2009
Invested : Mar 10, 2010

Sector

Storage (Including Agricultural Products)

Industry

Infrastructure

Department

Gbl Infrastructure & Natural Resources

Project Description

Snowman Frozen Foods Ltd ( “Snowman” or “SFFL” or the “Company”) is a cold chain logistics service provider based in Bangalore. It commenced operations in 1997. SFFL’s services include primary transportation, storage, inventory management, documentation and distribution of frozen and chilled foods. The Company currently has 16 cold storage facilities with a total capacity of over 10,000 pallets spread across the country and operates about 75 owned and contracted refrigerated trucks (reefers) in its transportation division. Snowman has the capability of providing cold chain services to the entire spectrum of products including processed foods, fast foods, seafood, meats, ice creams apart from fruits and vegetables. Typically, the Company either builds its own facility on land obtained under a long term lease from a landowner on a willing seller/buyer basis or leases existing warehouses for a long term and undertakes appropriate retrofitting to convert it into a cold storage facility.

The project comprises a corporate investment of up to INR 250 million (apprx. US$ 5 million) to part finance the capital expenditure plan of the Company including the expansion of its cold storage facilities and of its refrigerated transport facilities.

Overview of IFC's Scope of Review

Review of this project consisted of appraising technical, environmental and social information submitted by the project Company including a review of existing management system documentation and its implementation at two of the Company’s operating sites. Documents reviewed included policies, operating procedures, reports, monitoring records, certificates and copies of permits. The appraisal team interviewed the corporate and site operations managers and the Corporate Human Resources (HR) Manager. The Snowman Frozen Food cold storage facilities at Ballabhgarh (Haryana) and Neelamangala (near Bangalore, Karnataka) were visited as examples of the company’s operations.

E & S Project Categorization and Applicable Standard

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 System;
PS2 – Labor and Working Conditions;
PS3 – Pollution Prevention and Abatement; and
PS4 - Community health, safety and security

All land and facilities required for the Project are limited in scale and often located in the periphery of towns and cities. Further, these are either purchased or leased on a willing seller/buyer basis. Hence, land acquisition and involuntary resettlement (PS5); impacts on biodiversity, natural habitats, forests, or protected or sensitive areas (PS6) or on Indigenous People (PS7) or cultural property (PS8) are not expected on account of the Project.

Environmental and Social Mitigation Measures

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 and Performance Standards, 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/Project is summarized in the paragraphs that follow. Further information is provided in the attached documentation.

PS1: Social and Environmental Assessment and Management Systems

The Company is in the process of adopting a systems approach to managing social and environmental aspects associated with its operations/business. SFFL has implemented a food safety management system (FSMS) certified to ISO 22000 at 10 of its 16 existing sites. While one more of the facility is undergoing the certification process, the balance five facilities will not be covered under the FSMS since they are either very small or being phased out. The Company is planning to make the FSMS compliant with EU Food Safety Standards also. The FSMS addresses certain environmental, occupational health and safety (EHS) aspects however it is to a very limited extent. Overall EHS has not been managed under a structured management system. The Company will put in place a corporation wide Environment Management System (EMS) certified to ISO 14001 standards including for design, construction, operation and decommissioning of its facilities and for transportation operations. Permit/consent validity and renewal is monitored by corporate office though overall responsibility for obtaining such permit/consents and ensuring compliance rests with the branch managers. The Company needs to obtain authorization under hazardous waste management rules.

The Company assesses potential social, environmental, occupational health and safety (SEHS) aspects and impacts of its operations in the context of applying for and obtaining regulatory consents/permits/authorizations. To a limited extent SEHS aspects and impacts have been assessed in a structured manner as part of the ISO 22000 process. While SFFL’s projects and operations may have limited impacts, there is a need to further strengthen the SEHS impact assessment process. The Company will undertake a comprehensive assessment of SEHS aspect-impacts associated with its projects and operations: as part of the ISO 14001 implementation process; and during implementation of the upgraded HR policies and procedures. The Company has developed a draft emergency response plan: which is required to be finalized and displayed; emergency response committees and team need to be put in place; and training of all employees on emergency preparedness and response needs to be completed. Presently, the Company does not have procedures for: obtaining assurance on facility compliance with statutory EHS requirements; internal and external audit of EHS performance; reporting to senior management and to external stakeholders on EHS aspects/performance; and management review and corrective action. Moreover, the Company proposes to increase the fleet of trucks through an outsourcing/contracting model and will need to further strengthen its processes to ensure adherence of contractors to statutory and SFFL’s Policy requirements. The above strengthening/improvements will be undertaken by SFFL: as part of the ISO 14001 certified management system; through further suitable upgrade of the ISO 22000 certified FSMS; and upgrading of the HR Policies and procedures.

PS2: Labor and Working Conditions

SFFL currently engages 510 persons in its operations of which about 185 are employees and 325 are contract workers. The Company usually engages persons from nearby villages as contract workers. Contract workers include loader/unloader, delivery persons, drivers, security, maintenance, housekeeping and catering services, among others, at the cold storage sites. The approximate average number of workers (staff and contractor) at each cold storage facility is 25, with 10 employees and 15 contract workers including security. While contract workers are paid in cash at the facility, the Company has procedures in place to ensure due payment by contractors. SFFL manages its labor relations in accordance with relevant Indian regulations. The Company however needs to display relevant provisions/abstracts of applicable labor laws including on contract labor, minimum wages, standing orders and other applicable labor laws, prominently at its facilities. The Company has procedures in place to ensure compliance with minimum age requirements. However, the Company needs to upgrade labor policies, procedures and practices to ensure compliance with statutory requirements pertaining to overtime, wages, appropriate documentation, records, registers and wage slips. SFFL will ensure that appropriate amenities and facilities for contract workers are provided at each of its cold storage warehouse. The Company has a Human Resources Policy Manual applicable to its employees, which addresses personnel management (e.g. induction, probation, disciplinary action); working rules (e.g. leave, holidays); salary, appraisal and training; travel and relocation; compliance (e.g. conflict of interest, grievances); and employee welfare (e.g. safety, medical allowance). The Company adheres to equal opportunity and non discrimination principles and will also articulate it as part of the HR policy. To make the HR Policies and procedures consistent with statutory requirements and Performance Standard 2 provisions, the Company will upgrade its policies and procedures pertaining to: leaves; employee grievance redress; and disciplinary action.

Occupational health, safety and hygiene standards have been defined and are generally adhered to. First aid training to employees and first aid kits are being provided as part of the ISO 22000 FSMS. The Company has an annual health check up program in place for employees and contract workers. All employees, contract workers and drivers are covered under group personal accident insurance. MSDS of chemicals used for pest control are available and will be prominently displayed including details of hazards from exposure and antidotes in the event of exposure. Accident registers are maintained at each cold storage facility. However, procedures for accident/ incident reporting, investigation and corrective action including accident/incident monitoring at corporate level needs to be put in place. Employees and contract workers are provided appropriate personnel protective equipment. However, for DG set/chiller/compressor operators and maintenance personnel, ear muffs need to be provided and its use ensured by the Company. Long distance reefers have two drivers. Drivers have been provided a mobile phone, cash card for fuel and there is a vehicle emergency response plan. However, provision of TREM cards and training on emergency response, defensive driving needs to be provided. The Company has a process in place to undertake background check of drivers. SFFL needs to further strengthen the OHS procedures particularly through: training of all staff on OHS; provision and use of step ladders; defensive/safe driving procedures and training of drivers in defensive driving; awareness on healthy practices including HIV/AIDS prevention; emergency response at cold storage facility and during transport; and implementation of best practice for worker maximum exposure to low temperature (-18 deg. C) conditions.

PS3: Pollution Prevention and Abatement

SFFL will manage environmental aspects and impacts through its ISO 14001 certified environment management system. Towards energy conservation, the Company has installed capacitor banks and multi compressor arrays for effective use of compression/refrigeration capacity. Moreover, the Company will implement a rainwater harvesting program at all of its facilities. Primary source of energy at SFFL’s facilities is usually grid electricity though diesel generator (DG) sets as 100% backup power are also provided. The Company will, as part of the EMS, include procedures to ensure that DG set and vehicle fleet maintenance as also their respective emissions conform to good international industry practices (GIIP). Water is used primarily for domestic purposes at site and during summer months, for augmenting the cooling process. Borewell water is used at all sites for process use. For drinking purposes either bottled water or reverse osmosis (RO) treated borewell water is used. Domestic sewage (the only effluent) is treated through septic tank and soak pits. The Company has procedures to monitor energy consumption and will put in place appropriate equipment and/or procedures as required to also monitor: water consumption; and greenhouse gas emissions on account of its operations. The Company will undertake acoustic treatment of high noise generating equipment in accordance with statutory requirements.

Trucks are serviced by third party service providers. The company stores one day diesel on site. Chemicals on SFFL sites are typically limited to cleaning products, which are closely managed via the ISO 22000 system in relation to potential food contamination. Hazardous waste generated on SFFL sites includes waste oil and chemical drums/containers. The Company will manage hazardous materials and other wastes in accordance with good industry practices and IFC guidelines. In particular: the Company will implement a program to: (a) segregate and store all hazardous material appropriately under secondary containment; (b) identify all hazardous wastes generated as per host country rules on hazardous waste handling and management; (c) label, segregate and store all hazardous wastes under secondary containment; (d) dispose hazardous wastes through authorized entities only; and (e) maintain records of hazardous and other wastes generated and disposed.

Any expired products are returned to the customer to dispose of or are mixed with lime and collected by the municipal garbage authorities. However, certain wastes (paper, food waste or other) were being burnt in open pits, which the Company has ceased. SFFL will undertake a contamination assessment at sites where this was practiced and implement a remediation plan, if required. Material impact on ambient air quality, ambient noise levels, water quality and availability is not expected on account if the Project.

PS4: Community Health, Safety and Security

SFFL’s facilities are generally located in the periphery of towns and cities and usually have some communities resident in their vicinity. In busy seasons, 5-6 large trucks/reefers and 6-7 smaller vehicles are expected at each facility daily, hence traffic impacts are limited. Driver training, awareness and control features will be put in place/strengthened to minimize risks to safety of communities from vehicles plying to and from SFFL’s facilities. The Company will, as part of the EMS, put in place procedures to mitigate risk of uncontrolled release of hazardous materials, including risk to communities from hazardous material transport and an offsite emergency response plan. Mostly local persons/villagers are engaged as contract workers at SFFL’s facilities. The Project is not expected to exacerbate community exposure to disease either due to changes in land/hydrologic or other terrestrial/air quality/hydrologic regimes or due to influx of large pool of migrant laborers. The Company will implement a program on HIV and STI awareness for all its employees, contract workers and drivers.

Security guards are provided via Third Party contractors. Two guards are normally on each site per shift and are armed at large sized facilities. The Company will develop and implement procedures for ensuring that: past records of security personnel employed is screened; security personnel have clear objectives and permissible actions laid out; security personnel are trained in avoidance of human rights violations, use of fire arms and handling various situations with clear procedures; security incidents are recorded, investigated and corrective action implemented; bonafide complaints against security personnel are investigated/disciplinary actions implemented; and there is a grievance mechanism for aggrieved members of community or employees, in the event of a violation of the code for security personnel.

Stakeholder Engagement

SFFL’s facilities are generally located in the periphery of towns/cities and have some communities resident in their vicinity. However, impact of the Company’s operations on neighboring communities is limited. The Company’s engagement with neighboring communities is informal and not under a structured community engagement process. While local branch officials interact with members and elected representatives of neighboring communities, these interactions are seldom formal and often there is no documentation of these interactions. The interactions pertain to employment of local youth and corporate social responsibility activities expected from the Company. Contact details of branch officials are available with representatives of the neighboring communities and also at the facility gate. The Company engages worker from nearby villages in its operations, who also enable engagement with nearby communities. While the branch officials are accessible to representatives of the neighboring communities, the Company will put in place a structured community engagement and grievance redress procedure. On occasions, SFFL supports efforts like storing polio vaccines for the UNICEF polio vaccination campaigns in the local area.

For enquiries and comments about the Project please contact:

Name: Ravi Kannan, CEO,
Address: No.424, 6th Cross,
4th C Main, OMBR layout,
Banaswadi, Bangalore 560043

Telehone: 91-80-40250400:
Fax: 91-80-25451531
E-Mail: rkannan@snowman.in

A Summary report on management of social and environmental risks and impacts will be disclosed on the Company’s website http://www.snowman.in and also at the following location from 10.00 AM to 5.00 PM.

Name & address of Bank: INDUSIND BANK LIMITED, Du Parc Trinity, Ist Floor West Wing, No. 17, M G Road, Bangalore – 560 001.

Bank Contact Persons’ names:
Mr. Santanu Banerjee, Chief Manager/Ms. Aruna Chakravarthy, Manager.
Bank Telephone Numbers with STD Code:080 – 2559 2318/19/31/27

Client Documentation

File Name	Actions
Environment and Social Action Plan August 14 2009.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.

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