27660 - Tantalizers PLC

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Environmental & Social Review Summary

Project Number

27660

Company Name

TANTALIZERS PLC

Date ESRS Disclosed

Apr 17, 2009

Country

Nigeria

Region

Africa

Last Updated Date

Jun 3, 2021

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Sep 15, 2009
Signed : Feb 9, 2010
Invested : Nov 12, 2010

Sector

Other Food

Industry

Agribusiness and Forestry

Department

Regional Industry - MAS Africa

Project Description

Tantalizers PLC (“Tantalizers” or “the Company”), the second largest fast operator in Nigeria, established its first outlet in Festac, Lagos in 1997. The company has now grown to 47 outlets. There are two more outlets serving a hospital and school, which brings thetotal number of outlets to 49. The outlets are spread across the main urban cities of Nigeria; Lagos, Ibadan, Abuja, Port Harcourt, and Abeokuta. The company has also expanded its product offering and now offers a variety of chicken and meat products, pastries and ice-creams, as well as local dishes. The company also intends to upgrade some of its existing shops to international standards for ambience, safety, and environmental management The company will also upgrade its IT system to provide real time reports on sales; and additional transport will be needed to cater for the increased number of outlets. Each outlet employs 45 people working two shifts of 9 hours each, and 70% of the employees are women.

In addition to the development of new outlets, the company will also purchase new kitchen equipment and renovate its existing outlets. This expansion and renovation phase will enable the company to increase its production capacity in addition to expanding its product range to further cater to local tastes.

Overview of IFC's Scope of Review

The scope of the project review against IFC’s Performance Standards included assessment of the sponsor’s environmental and social management capacity and review of the following documentation:

- Draft employee Handbook,
- Standard Operating Procedure for Production of 2kg Fried rice,
- Standard Operating Procedre for Cleaning,
- Cleaning Operational Guidelines, and
- Response to an IFC questionnaire on environmental, social, safety and personnel issues.

The project appraisal team accompanied by the Operations Director, Quality Manager and Maintenance Manager (only for the first two outlets), visited the following sites;

- Festac 1; the head office plus hub and spoke,
- Festac 3; spoke outlet,
- Omole; outlet (new hub),
- Gbagada; Franchise outlet, and
- Ilupeju; pseudo outlet, i.e. semi hub and semi spoke

Whilst on the sites, the team met and engaged with representatives of outlet management teams.

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 & Management Systems
- PS2: Labor and Working Conditions
- PS3: Pollution Prevention and Abatement
- PS4: Community Health, Safety and Security

Tantalizers outlets are located in urban areas where land ownership is better defined and title deeds are available. Land purchases are on a willing seller/willing buyer basis. Thus Performance Standard 5: Land Acquisition and Involuntary Resettlement does not apply. The outlets are located in highly developed urban areas where issues association with PS6: - Biodiversity Conservation & Sustainable Natural Resource Management – do not arise. There are no Indigenous Peoples in the outlet areas and there are no Cultural Heritage issues recorded so far. Thus PS 7 and PS 8 do not apply either.

Environmental Health & Safety (EHS) Guidelines that are expected to be applicable to this investment include:

The General EHS Guidelines (April 2007), and
Tourism and Hospitality Development

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects. The main issues for this project are management systems for environment and social performance, effluent discharge, and food safety. These specific environmental and social impacts are generally limited to the project sites and are few in number. These impacts can be addressed through generally recognized technology and procedures as is outlined below.

Environmental and Social Mitigation Measures

PS1: Social and Environmental Assessment and Management Systems:

Social and Environmental Assessment:
The Lagos State Town and Country Planning Regulations of 1986 requires that any developer intending to carry-out any proposed development on any land in the State shall apply to the appropriate Town Planning Authority for approval of the building plan of the proposed development. The requirement further stipulates that a developer shall at the time of submitting his application for a development permit submit a detailed Environmental Impact Analysis (EIA) Report. Tantalizers do produce EIAs as required by the regulations. The Company has not, however, had a systematic way to implement the outcomes of the EIA process. Tantalizers will systematically review all past EIAs to ensure that all actions required by them have either been fulfilled or put into a comprehensive Action Plan with time-bound targets for their completion. In future developments, Tantalizers will ensure that the environmental and social consultants will use both local Nigerian requirements and the Performance Standards in the assessment of the project. The consultants will produce project-specific, time-bound environmental and social action plans.

Organizational Capacity:
Tantalizers do have an understanding of the Environmental and Social (E & S) issues arising from their operations. E & S responsibility is currently under three portfolios; Quality, Maintenance and Marketing, which looks after community relations. As part of the evolution of their management system, Tantalizers will identify one manager to be responsible for E&S issues, including ensuring good E&S assessment of projects – and action plans associated with those assessments, following up to ensure that the action plans are implemented, carrying out monitoring and evaluation of its outlets, and reporting to senior management on the performance of the Company. Community relations will likely remain the responsibility of Marketing and Performance Standard 2 issues on labour will remain with Human Resources. Individual outlet managers will have responsibility for the E&S performance of their individual operation written into their job descriptions.

Management System:
There is no E & S management system in place currently. Tantalizers will, however, develop, in the short run, a Health, Safety and Environment (‘HSE’) Handbook to guide operations both at individual outlets, but in other areas of operations. Along with the development of the E&S Action Plans, and the assigning of responsibility for E&S performance, the Company will have an initial management system. With the medium-term development of a Hazard Analysis and Critical Control Point (‘HACCP’) program to ensure food safety, described below, the Company will have an effective management system that will address its core risks.

Training:
At present no specific training is offered on E & S issues to the responsible personnel. In-house hygiene and safety training is administered by the Quality Manager. As part of the short-term roll-out of the EHS Handbook and the medium term develop of a HACCP program, training will be provided to both managers and staff.

Monitoring:
At present the monitoring program centers on potable water: Samples are collected and tested for quality on a monthly basis to check conformity with World Health Organisation (WHO) standard for potable water supply. With the development of a HACCP program, monitoring of important control points with the food storage and preparation chain will be monitored as a key principle in the HACCP program.

Reporting:
Tantalizers is developing recordkeeping procedures for both the environmental and the health and safety parts of its operations. This recordkeeping is required by state regulations, but will also be part of its EHS Handbook and HACCP system. The designated E&S officer will report on a quarterly basis to senior management, particularly as part of the HACCP program.

PS2: Labor and Working Conditions:

Human Resource Policy and Management:
Tantalizers does not have a Human Resource Policy, but instead has drafted a comprehensive Staff Handbook that is still to be approved and adopted as an official document of the company. Tantalizers will adopt this document as an official company document. Tantalizers undertakes in the Handbook to provide employees with readily understandable information regarding their rights under national labour and employment law, in keeping with Performance Standard 2. The draft covers broad topics such as terms and conditions of employment; general conduct, code of ethics and communication policy; health and safety at work; discipline and grievance procedure; and staff training and development. The Handbook contains commitments on non-discrimination and equal opportunity, establishment of a grievance procedure for workers, staff training and development, communication and avoidance of child/forced labour. Commitment to effective communication is reflected by Tantalizers “open door” philosophy referred to in the draft Handbook. According to the draft Handbook, it is the responsibility of all Supervising Managers to ensure that employees who report to them are aware of and understand corporate policies and all other topics relevant to their areas.

Non Discrimination:
Tantalizers currently employs 2,240 people all of which are local Nigerians. Seventy percent of these employees are women whilst 30% are men. This predominance of women appears to be related to cultural self-selection out of cooking jobs by men. The hiring procedures are spelt out in the draft Handbook and do not evidence any discrimination.

Workers’ Organization:
The draft Handbook does not contain information on workers’ organizations and collective bargaining, but staff members are free to join unions of their choice. Currently, none of Tantalizers employees are unionized. Membership in trade unions is entirely voluntary in Nigeria.

Worker Health and Safety:
In the Handbook, Tantalizers requires that on-the-job accidents and illnesses be reported by the Head of Department/Outlet Manager to the Human Resources (HR) Department. This reporting will be part of the EHS recordkeeping syste.

PS3: Pollution Prevention and Abatement:

Tantalizers demonstrates an understanding of all of their waste streams and the final disposal methods. The main broad waste streams from the outlets are solid waste; whose bulk components include packaging material, paper, empty cans, plastic and glass bottles, and food waste; and liquid waste, which includes sewage and kitchen effluent waste, used oil from generators and storm-water runoff.

Domestic Waste:
At current sites, domestic refuse are carted and cleared regularly by Government-appointed waste management companies. This same model would also be in use at the proposed expansion sites as Tantalizers is legally bound to use these operators. The waste is carted off site on a daily basis at night or early in the morning before outlets open for business and deposited at government landfills, one of which is Iojota in Lagos State. The Lagos State Waste Management Agency (LAWAMA) is the contractor responsible for carting Tantalizers solid waste. There is minimal sorting of waste at sites. The company will review further opportunities for recycling of waste.

Sewage is stored in underground reinforced concrete tanks and, once full, the tanks are evacuated into mobile tanks by private contractors and treated at government approved sewage treatment facilities. These operators are government-licensed to carry out these activities. It however must be understood, that these contractors are little more than transporters of the sewage from locations to approved treatment sites and final treatment is the responsibility of state government. The evacuated sewage for Festac area outlets is transported to either Mile II close to Frestac or Iddo for further treatment. Mile II and Iddo are Lagos state sewage treatment facilities.

Effluent waste from the kitchen passes through fat traps into the underground concrete tank. The cake that forms in the fat traps is evacuated into bin liners and collected together with the rest of the solid waste for final disposal at state landfill as noted above.

Energy:
The sites are designed to be self sufficient in energy and water provision. This is because there is limited public supply of energy and no public supply of potable water. Electricity at all the outlets is generated from diesel generators and each outlet has a dedicated generator as well as a standby generator. These generators are below the level at which, according to IFC General Health and Safety Guidelines, air emission must be tracked. At all sites the generators are housed in a specifically sound proof standard designed structure to reduce noise levels. Maintenance of these generators is out-sourced to vendors, and this maintenance is tracked to ensure operation according to manufacturer guidelines. Fuel for the generators is stored in over-head tanks at individual outlets and in all cases no bund walls are constructed to contain spills should they happen. The company will install bund walls as part of the supplement action plan for this project. Consumption of fuel is recorded and documented as part of operational costs. This currently amounts to 168,822 liters per month.

Potable Water Supply:
Potable water is provided via boreholes through to a water treatment plant, pump fed to overhead tanks, and gravity fed to receptacles and sanitary outlets. Samples are collected and tested monthly by a qualified laboratory. Testing is based on conformity with Nigerian Industrial Standard for Drinking Water Quality: Feb 2007. Two sets of results were provided during appraisal: Omole and Ilupeju for the month of November 2008. The laboratory noted that the Omole sample should be treated with respect to pH, aerobic mesophilic bacteria and yeast/moulds. The Company is treating the water accordingly. Further, Tantalizers reported that an incident occurred where water was found to be contaminated at the Apapa outlet. In this case, water is then bought from registered public water vendors and is subjected to testing for quality. Tantalizers is working on a plan to have their own internal laboratory for chemical and biological analyses. As potable water is important to a HACCP program, more frequent testing will assist in ensuring food safety.

The water treatment is outsourced, and Tantalizers water treatment plants are covered by an annual maintenance contract (renewable yearly) to ensure optimal quality and operations.

From time to time the properties are fumigated for pests and this is contracted out. Only biodegradable pesticides are used and the Quality Assurance Manager oversees all fumigation activities. Specifically organophosphates DVVP and cypermenthrin, derating brodifacum and phosphodezinc are currently used at outlets.

PS4: Community Health, Safety and Security:

Risks: The main identified hazards from Tantalizers operations include food poisoning, fire, robberies, and vehicle accidents during transportation of goods and food staffs. Discussion with the insurance brokers indicated that cash robberies carry the biggest risk. Only one fire incident claim has been handled by the insurers as a result of a fire at the Head Office none operational side. Further, when the fire incident took place, the Federal Fire Service could not respond because of a lack of water and malfunctioning equipment.

Emergency Preparedness and Response: At current sites, only the following are provided for as part of the emergency preparedness plan:

- Fire extinguishers (dry powder and CO2) conspicuously displayed with little or no signage and directions on use.
- Fire suppression and fighting equipments are covered by annual maintenance contracts to ensure optimal performance.
- Fire and burglar alarm systems installed since 2008.

These measures, however, do not adequately address the risks associated with fires, and an independent Life & Fire Safety audit and action plan is needed for all sites.

Food safety:
To date no claims have arisen as a result of food safety issues, andTantalizers records show no such incident. The Quality Manager has prepared and implemented a HACCP flow chart with critical control points. But Tantalizers has not yet instituted a full HACCP program. Tantalizers will implement a HACCP and ISO 9000 certification as part of the project.

Security Personnel:
Tantalizers employ four outsourced security companies. The security personnel are not armed as per Nigerian law, but are there to raise alarm and call the police as and when necessary. Internally, Tantalizers has a Security Manager whose role is to oversee the operations of the security companies contracted. As already noted, cash robberies are the biggest exposure for Tantalizers and to mitigate against this, Tantalizers has engaged a fifth security company. This more specialized security company has installed cash point monitoring equipment at eight outlets, which allows for the cash to be evacuated according to set times and limits. The security company has also installed alarm response systems with panic buttons allowing them to react through their armed reaction teams. The responsibility of security personnel training lies with the security companies.

Stakeholder Engagement

Tantalizers engages with the communities in which they operate through the marketing department and through the Community Social Responsibility (CSR), Tantalizers has a give back program and through this program, roads, traffic lights and street lights have been fixed in some places around the outlets. Tantalizers also fixed vehicles and tires for the fire station after the fire service had failed to respond to a fire emergency at Tantalizers’ Festac head office.

Tantalizers could enhance this important work they are doing by having a community engagement policy document that is communicated to the authorities and the public at large. Further, all community engagement programs should be documented. They should also be communicating with their custumers their management of food safety and environmental practices. Tantalizers will have in its outlets information about how they management these aspects of their operations.

Client Documentation

File Name	Actions
Tantalizers ESAP Description .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.
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