27129 - Wings TAS II

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Environmental & Social Review Summary

Project Number

27129

Company Name

TIRTA ALAM SEGAR, PT

Date ESRS Disclosed

Apr 14, 2008

Country

Indonesia

Region

East Asia and the Pacific

Last Updated Date

Nov 30, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jun 18, 2008
Signed : Jun 24, 2008
Invested : Sep 16, 2008

Sector

Soft Drink

Industry

Agribusiness and Forestry

Department

Gbl Ind, Manufact, Agribus & Services

Project Description

This project involves the addition of a new processing line to the P.T. Tirta Alam Segar (TAS) ready-to-drink plant in Jakarta. The expansion is occurring within the existing building, which is located in an industrial estate. TAS is an existing client of IFC, and a member of the Wings Group in Indonesia, which has a variety of holdings in the food processing and chemical manufacturing sectors.

Overview of IFC's Scope of Review

The review of this project consisted of a desk review of technical, environmental and social information submitted by P.T. Tirta Alam Segar (TAS) in response to IFC’s Environmental and Social Appraisal Questionnaire and interviews with company representatives. As this is an existing client, the review was informed by the results of recent site visits (September 2006) and subsequent monitoring reports. The existing investment has an Environmental and Social Risk Rating of B2. A field visit was not considered necessary for this expansion project.

IFC and P.T. TAS have agreed to a set of actions to ensure the company’s continued compliance with IFC’s Performance Standards and World Bank/IFC Guidelines.

E & S Project Categorization and Applicable Standard

While all Performance Standards (PS) 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; and
- PS4: Community Health and Safety.

This ESRS assesses the project against the above Performance Standards. The project was not assessed against PS5 on Land Acquisition and Involuntary Resettlement, PS6 Biodiversity Conservation and Sustainable Natural Resource Management, PS7 on Indigenous People and PS8 on Cultural Heritage as no new land is required for the project, natural resources are not harvested from biodiverse areas or sensitive supplies and the project does not impact on either Indigenous Peoples or known Cultural Heritage.

In addition, the following Guidelines are applicable to this project:

- Environmental, Health and Safety General Guidelines, dated April 30, 2007; and
- Environmental, Health and Safety Guidelines for Food and Beverage Processing, dated April 30, 2007.

This is a Category B project under IFC’s Policy on Social and Environmental Sustainability because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines, design criteria, local regulations and industry certification schemes. Environmental, social, health and safety issues which may be associated with this type of project, and which were reviewed during appraisal, included: management systems for environmental, health and safety (EHS), and life and fire safety issues; compliance with local and WB/IFC requirements for air emissions, wastewater discharges, indoor air quality, noise and waste management; energy, water and other material use and efficiency; labor issues and community engagement. This is an expansion of an existing IFC project which was previously assessed in 2006 as Category B. This existing investment has submitted an AMR in a timely fashion and is categorized as ESRR B-2 Average.

Environmental and Social Mitigation Measures

The sponsor has presented information which indicates that the proposed project will comply with IFC’s environmental and social requirements, including host country laws and regulations and IFC’s Policy and Performance Standards on Social and Environmental Sustainability, and the applicable environmental, health and safety guidelines. The information about how any potential impacts will be addressed by the sponsor/project is summarized in the paragraphs that follow.

- Social and Environmental Assessment and Management Systems

Environmental and Social Assessment:

Environmental and social risks arising from PT TAS’ operations and relevant legal requirements were reviewed by the company and the responsible local government departments. The design and operation of the facilities have incorporated systems and procedures to prevent environmental and health and safety impacts.

Management Program:

As is the case throughout the Wings Group operations, TAS has procedures in place to manage environmental, health and safety, labor, and life and health and safety issues and is preparing for certification of its integrated food safety, quality, EHS and health and safety management system to ISO 22000 (which incorporates HACCP). Further incorporation of environmental measures in the system will enable additional certification to ISO 14001. The integration of these management systems, which share a common approach, provides a comprehensive framework for management of these elements, which fully meets IFC’s PS1 requirements.

Organization:

The company has assigned responsibility for EHS and fire safety matters to responsible staff. Supervisors conduct daily briefings and performance reviews with staff after each shift and report results and issues to Managers. Managers hold weekly meetings to review issues and identify improvements.

Training:

The company provides induction and job-specific training for all employees, including training on environmental, health and safety and fire safety issues. Ongoing awareness raising initiatives are undertaken as well as regular refresher training based on job functions.

Monitoring and Reporting:

TAS has monitoring systems and reporting requirements as part of its EHS management system, both within the company and the Wing Group. The establishment of integrated systems under ISO 22000 will further formalize monitoring and reporting.

- Labor and Working Conditions

Human Resource Policy and Management:

As part of this expansion, the company will increase its workforce by approximately 200 employees. Compensation, working hours and workplace conditions comply with Indonesian labor standards and requirements. The company provides additional financial compensation based on performance as well as amenity and cultural facilities for staff.

PT TAS provides all staff with a staff manual, known as the Company Regulations, outlining the company’s human resource policies, compensation and benefits provided sick leave and holiday allocation, insurance, etc. The manual also includes information on channels for internal communication and raising documented conditions and terms of employment and benefits in compliance with national law and PS2. All staff sign their acceptance of the staff manual. Internal communication and grievance channels include daily briefings between supervisors and workers, weekly meetings between managers, participation of worker’s representative in management meetings, an internal e-mail and staff suggestion boxes. The staff manual also outlines the company’s commitment to non-discrimination and equal opportunity. However, many of the employees are local women. PT TAS, as in all Wings companies, is very attentive to worker needs and makes significant efforts to ensure a pleasant working environment is maintained.

The company does not engage any child or forced labor. The company complies with local labor laws and related PS2 requirements to protect the workforce. All employees are over the age of 18. TAS does not have plans for the retrenchment of workers, and is on the contrary expanding employment by about 50% as part of this expansion. Staff turnover is expected to be about 10% annually, which is consistent with local and industry averages, and with other Wings’ facilities. Inputs for drinks production include only water, sugar and flavorings, and TAS is unaware of any supply chain issues for these materials.

Occupational Health and Safety:

TAS implements procedures to provide a safe, healthy and hygienic work environment and to prevent accidents, injury or disease. The establishment of integrated systems under ISO 22000 will formalize and improve health and safety as well as fire prevention and response measures and performance. Job applicants receive health checks before employment and workers are checked annually. Both internal and ambient noise levels comply with local and WB/IFC standards and the company has not experienced any fatal or serious accidents. The company provides health insurance to workers and their families. The insurance is arranged through a private supplier. Under this policy, the workers and their families have free, unlimited access to a group of local clinics. In addition, there is an on-site clinic. In the case of work accidents, Wings will take the employee to a hospital and pay for all emergency care expenses.

- Pollution Prevention and Abatement

Pollution Prevention, Resource Conservation and Energy Efficiency:

Measures to prevent, minimize and mitigate environmental impacts are covered by the company’s existing procedures and the establishment of an integrated system under ISO 22000 which is now nearing completion will further formalize and improve existing procedures. Electricity is sourced from the local grid, supported by small backup diesel gensets when needed. The boilers, which provide steam for the pasteurization process, are also powered by diesel fuel. Point source and ambient air quality monitoring complies with local and IFC requirements. Water is supplied by the local industrial estate and monitored by the company to ensure it meets local and IFC requirements. Greenhouse gases emitted annually by the Project are expected to be in quantities well below the IFC reporting threshold of 100,000 tons of CO2 equivalents.

Process wastewater treatment is handled by the industrial estate, and is treated to meet national and IFC requirements. Sanitary waste from the site is treated in a septic system. All solid wastes are sold to third parties or disposed in approved municipal facilities. Neither hazardous nor plastic wastes are generated. Unprinted plastic materials will be recycled within the production process and printed plastic wastes will be chopped, ground and sold to recyclers/third parties for reuse. Solid wastes are collected for disposal by licensed contractors.

- Community Health, Safety and Security

Community Health and Safety:

TAS implements appropriate fire and life safety measures to minimize the impacts of its operations. Company activities do no result in impacts beyond the project site and pose no dangers to neighboring communities.

Emergency Preparedness and Response:

The company implements emergency preparedness and response procedures, including fire response and measures. Arrangements are established with local fire authorities and annual inspections are undertaken by authorities responsible for fire safety issues. The existing facility is equipped with fire safety equipment and a sprinkler system. TAS had 14 safety training classes in 2006 for 365 employees, and carried out 3 fire drills that year.

Security Personnel Requirements:

Professionally managed and trained security personnel are hired to guard the company’s facilities. Contracts include requirements to meet national laws and to provide appropriate training.

Stakeholder Engagement

The company regularly engages with local community leaders to discuss issues or opportunities, such as the need to increase the workforce for the expansion project. The plant is located in an industrial estate and is not directly adjacent to the community itself. The company supports several community projects including the development of a local school and religious facilities. While no complaints have been received, a grievance mechanism for receiving and addressing grievances raised by the local community has been established.

**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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