27783 - Bauducco NE

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

27783

Company Name

Pandurata Alimentos Ltda.

Date ESRS Disclosed

May 14, 2009

Country

Brazil

Region

Latin America and the Caribbean

Last Updated Date

Jun 3, 2021

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jun 19, 2009
Signed : Jun 22, 2009
Invested : Aug 19, 2009

Sector

Other Food

Industry

Agribusiness and Forestry

Department

Gbl Ind, Manufact, Agribus & Services

Project Description

Bauducco is one of the leading food producers in Brazil. It produces and distributes basic food, staples, cookies and biscuits, part of which directed to the bottom of the social pyramid. The Bauducco owns 5 state-of-the-art, high capacity, and modern production facilities, for all product lines which allow them to be among the most competitive companies in the market.

The Northeast region is one of the main biscuits markets in Brazil, where Bauducco has to compete with local players like M. Dias Branco and J. Macedo, which have plants in the region and have lower logistics costs. In order to be a competitive player in the market, Bauducco has decided to implement a plant in the region.

The Project entails a $50 million investment to implement an industrial plant and a distribution center in Rio Largo, state of Alagoas. In December 2010, Bauducco expects to initiate the operations of the distribution center and the wafer product line (productive capacity of 9,000 mt), which is Bauducco’s most demanded product in Northeast.

The Bauducco’s expansion project in Northeast of Brazil is in advanced negotiations with Alagoas State (AL) and the City of Rio Largo, to be built in the border of the Rio Largo urban area in an Industrial site. Rio largo is part of Maceio, AL metropolitan area that already has other industries like a sugar cane mill and a textile company. The new plant design is intended to be very similar to the existing Extrema factory with some improvements. It will be a state-of-the-art plant in terms of technology and Environmental Healthe and Safety (EHS)control. The plant will be built in stages and the first one will be a waffles production line with a distribution center.

Overview of IFC's Scope of Review

IFC’s review of this Category B project consisted of appraising Pandurata Alimentos Ltda.’s (Bauducco) own assessment of its environmental, occupational health and safety, labor and social development information as per:

- During IFC’s appraisal the following actions took place:

- Presentation by the company of the proposed investment;
- Presentation by the company on the Human Resources policy and actions and on Occupational Health and Safety issues;
- Presentation by the company of the Social assistance/responsibility area;
- Site visits to Guarullhos Plants (Argentina St and Endres St), Bom sucesso Plant, Extrema plant and Fernão Dias Distribution Centers to evaluate both social and environmental issues.
- The company submitted statistics on occupational health and safety issues, as well as on more general labor and social responsibility issues
- Meeting with the company’s quality assurance team.
- Presentation by the company of the Rio Largo, AL new factory and Distribution center project design and selected area in negotiation for construction of the plant.

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.
- PS5. Land Acquisition and Involuntary Resettlement

- PS6: Biodiversity Conservation and Sustainable Natural Resource Management – Does not apply as this project takes place in previously urban or industrial areas;.
- PS7: Indigenous Peoples - Does not apply as this project does not take place in indigenous people’s lands and does not affect Indigenous Peoples.
- PS8: Cultural Heritage - Does not apply as this project will be constructed in previously developed land and will not affect Cultural Heritage resources.

This is a Category B project. The client’s new industrial plant will be located in Rio Largo city rural area designated for industrial land use. Bauducco’s sector specific activities (dry food products) have moderate impacts on the environment and the community. Expected impacts and risks of this project include environmental noise emissions, wastewater releases, odors emissions, workplace noise exposure, exposure to accident with moving parts, workplace heat exposure and environmental impacts and Occupational Health and Safety (OHS) risks during the construction phase.

Environmental and Social Mitigation Measures

The issues, the potential impacts and how they will be addressed by the company are summarized below:

- PS 1: Social and Environmental Assessment and Management System

Following is the description of existing management elements of Bauducco’s Management Framework that will be applied at its new plant in Rio Largo, AL:

Social and Environmental Assessment

Prior to a new site construction and during the project design phase, Bauducco will be required by the Local Environmental Authorities to present an RCA –Enterprise Environmental Characterization Report – which will include a detailed description of the project, the local social and natural environment description, the impacts of the construction and operational phases and the controlling, mitigating and compensatory measures that will be taken to deal with these impacts.

In addition, during the project design phase, the Bauducco’s Engineering Unit review the project design to be consistent with local OHS legal requirements and existing Bauducco’s standards.

Management Program
Bauducco complies with local social and environmental regulations, they have an OHS Risk prevention plan, a workplace health and safety assessment and periodic monitoring systems. They have daily Health and Safety inspections and corrective plans. Bauducco also has all required licenses and permits and they treat and monitor their wastewater discharges. In addition, Bauducco already has the food safety management systems HACCP and GMP in their factories.

Organizational Capacity
The EHS structure is composed by one part time OHS Engineer, one Health and safety coordinator, one Environmental coordinator, one wastewatter operator for each facility and two EHS technicians in each plant. Bauducco is supporting the OHS technicians training on Environmental Management. They also have one nurse and one part time physician in each factory. Bauducco will hire a EHS manager that will be responsible to coordinate the Social and Environmental aspects of Bauducco’s operations and construction of new and existing sites.

Training
All operational workers of Bauducco have specific training on existing workplace risks, on required prevention measures, and on the results of the workplace monitoring assessments. Bauducco will design aformal annual EHS training program considering the specific nature of its operations and workers skills and needs.

Monitoring
Bauducco has an Occupational Health and Safety (OHS) monitoring system under the nationally required Workplace Risk Prevention Program (PPRA) and Occupational Health Monitoring Program (PCMSO). They have a periodic workplace noise monitoring, ergonomic assessment, Safety of Electrical Facilities assessment and daily OHS workplace inspections. All workers are subject to an admission, periodic and demission medical examination.

Bauducco monitors its wastewater discharges and solid wastes production, treatment and disposal. They also monitor the water, gas and energy consumption. They periodically monitore the gas/oxygen rate in the ovens of Bom Sucesso plant to optimize the gas consumption and plan to install some specific manometers to better monitor water consumption/reduction rates.

Reporting
Bauducco has a monthly OHS report that is shared with operational managers and discussed in the Accidents Prevention Internal Committee (CIPA). All accidents that result in lost work days are reported to the Public Welfare Authority.

- Bauducco reports twice a year its monthly wastewater, environmental noise and solid wastes production monitoring data to the Local State Environmental Authority, and annually reports to the Federal Authority (IBAMA) its wastewater, solid wastes, hazardous wastes production and disposal and air emissions releases.

- PS 2: Labor and Working Conditions

- Occupational Health & Safety –
The company has an Occupational Health and Safety department developing mandatory programs such as Environmental Risk Prevention Program (PPRA), Occupational Health Medical Control Program, Ergonomics program (PCMSO), Internal Commission for Accident Prevention (CIPA), Personal Protection Equipment (PPE). It is expected to have the same OHS programs in the new Rio Largo plants.

Bauducco has deployed Collective Protection Equipment (CPE) throughout existing facilities including such things as the isolation of noise sources with acoustic insulating materials; isolation of the heat sources with thermal insulating materials; guarding of moving parts of packing machinery and automatic shutoff devices and sensors that stop the machine automatically before an operator, or part of an operator, enters the danger zone. The Company plans to apply the same CPE standards to new machinery at the new Rio Largo plant.

Fire Safety and Training –
The Company has a well maintained structure of fire prevention, detection and response with smoke detectors in the industrial area, fire extinguishers and fire hoses (tested annually) at existing facilities. All Plants have fire prevention and fire fighting projects designs which are approved by the local fire authorities. A post construction and periodic inspection (AVCB) are required by the local fire authorities. The Company has a trained fire brigade in every plant, identified by a red cap and regularly trained in a special training site located at the Extrema plant. The Company plans to implement a similar fire safety and training program in the new Rio Largo plant.

Hazardous materials in existing facilities are stored in confined areas which will be remodeled to comply with Brazilian Fire Protection Standards and IFC requirements.

- Labor Conditions
In its existing facilities, the Company employs approximately 3032 permanent staff, 407 seasonal workers and 113 trainees for a total of about 3552 employees. Sixty percent of the workforce are women and forty percent are men. The Company has a program to hire disable people and a special training program. During the first phase of the Rio Largo project, which will be completed on 2011, about 256 new job positions will be created. When all phases of the Alagoas project are finished, the new plant will have approximately 863 workers divided into three shifts of work.

The Company respects the employee’s union’s collective bargaining agreements and the company minimum wage is $ 713.00 BRL, which is 8% above the agreed minimum wage. The minimum workers age is 14 years, but under a national part time training program in cooperation of technical schools. Underage workers are not allowed to handle or work with hazardous materials or activities. For other workers the minimum age is 18 years old. Bauducco hires unionized workers and unions representatives. There is no evidence that Bauducco restricts the freedom of workers to associate.

Bauducco has a human resources (HR) policy and follows Brazilian labor regulations, which are consistent with ILO standards (Brazil is a signatory to ILO conventions). The terms of employment, such as wages and benefits, hours of work, overtime arrangements and overtime compensation, annual and sick live, maternity, vacation or holiday are established by local labor regulations. Although Brazilian workers in general are familiar with the national terms of employment, the Company also informss them during the recruiting phase about the specific terms of the job position and additional benefits.

Bauducco has several internal grievance activities that provide different avenues for the expression and resolution of worker grievances. These activities include periodic open chats between managers and workers; private and direct access to HR analysts; and access to Union representatives in cases where workers want to remain anonymous or where they have not received acceptable feedback from the Company. Bauducco will develop and implement a formal internal grievance procedure at a corporate level in compliance with IFC’s Performance Standard 2 requirements that will be applicable to existing operations and the new plant in Alagoas.

The Company audits and ranks its suppliers according to technical issues and they have included social issues in the contracts, particularly on child labor and forced labor.

Bauducco will contractually require the construction contractors to have an OHS Management Plan that will encompasses: Risk Prevention Plan (PPRA); PCMSO (Occupational Health Medical Control Program); CIPA (Internal Commission for Accident Prevention); PPE (Personal Protection Equipment); Fall Prevention Program; Construction Workplace Conditions Program (NR18); Safety in handling; lifting of cargo and daily inspections

Bauducco will conduct monthly EHS inspections over the construction area to check contractors’ Occupational Health and Safety performance and compliance with national regulations.

- PS 3: Pollution Prevention and Abatement

- Solid and Liquid Waste
The existing plants generate various types of residues such as organic and food processing wastes as well as wastes directly related to production such as packaging, recyclables (mainly paper and cardboard, plastics, plastic drums, metal drums, pallets and production waste). The waste is properly stored and part of it is disposed of in landfills (sludge, green waste and food), part recycled (paper and cardboard packages and plastic packages) and part is used as animal feed. The Company will implement solid and liquid wastes management practices at its new plant in Rio Largo that are consistent with the management practices at existing facilities.

- Hazardous Wastes Handling and Storage
Hazardous solid wastes generated at the Company’s existing operations include sludge from effluent treatment plants which is disposed of in authorized landfills; smaller quantities of solid waste from the health clinics and light bulbs, which are respectively incinerated and collected by licensed companies. The Company will implement hazardous wastes management practices at the new plant in Rio Largo that are consistent with the management practices at existing facilities.

- Liquid effluents
The liquid effluents from existing plants are treated and discharged to public sanitary sewer systems. They are periodically monitored and meet local regulatory requirements and IFC Standards. All existing plants treat their effluents according to the local environmental regulations. The Company monitors treated effluents for biochemical oxygen demand (BOD), COD (Chemical Oxygen Demand) PH, Temperature, Oils and Grazes and Total Suspended Solids.

The liquid effluents from the new plant are expected to be discharged to the public sewage system and will have the same kind of treatment of the effluents from Extrema Plant which includes homogenization tanks, chemical treatment, flotation system, biological treatment, and membrane filtering system. In the case of being necessary to discharge them to a water body, the company will comply with local regulation, which requires that the effluents are in the same standard of the receptor water quality.

- Air Emissions
The main source of air emissions from Company operations are the ovens which are fired with natural gas and which therefore do not emit significant levels of hazardous air pollutants. The main issue associated with air emissions are nuisance odors. All oven stacks have filters to prevent odor emissions and there are no reports of community complaints at existing facilities. The same type of odor management technology will be applied to the new facility in Alagoas.

- Ambient Noise
The company monitors its noise emissions and has deployed noise control measures such as isolating the emissions sources. The Guarulhos Plant complies with local Standards of 70 dB(A) for a Predominant Industrial Area and Bom Sucesso Plant will make the necessary adjustments to fit Local and IFC Ambient Noise Guidelines. The Extrema Plant meets local and IFC guidelines and the new Alagoas Plant will include design specifications to comply with these requirements.

-Resources Conservation and energy efficiency
Bauducco is working on a cleaner production program that will allow them to have significant savings of water and energy consumption. The water from the water treatment plant in Extrema is reused in the boillers/steam system and they have burners’ optimization and maintenance measures to reduce natural gas consumption. The company will form a cleaner production working group at the corporate level to implement the program in all of its plants. The new Alagoas Plant will have a cleaner production plan consistent with the existing one.

- New Alagoas Plant Construction
Bauducco will contractually require from the construction contractors to have an Environmental Management Plan, following to local requirements, that will encompass: licensing; waste management; water usage and permit; wastewater treatment and control; erosion prevention and control; soil contamination prevention from lubricant and hydraulic oil spills; fugitive air emissions control; neighboring community impact and mitigation; and applicable mitigation measures designed in the RCA and the conditions of the Environmental License for construction.

Bauducco will conduct monthly EHS inspections over the construction area to check contractors’ environmental performance and compliance with national regulations and IFC requirements.

- PS 4: Community Health, Safety and Security

Buducco has received complaints from the community due to noise from the manufacturing facilities and from heavy traffic of trucks in the area of the Guarulhos plants. Bauducco has introduced noise reduction barriers, deployed a parking lot for the trucks and engaged with Guarulhos plants’ neighboring community. Bauducco will develop a standardized procedure for the prevention of noise related impacts and for addressing community concerns for all plants, including the new Alagoas plant during both the construction and operational phases.

- PS 5: Land Acquisition and Involuntary Resettlement

The property on which the new Alagoas facility will be built previously belonged to a local sugar mill and has been historically used to plant and harvest sugarcane. The plantation is managed and operated by the sugar mill, and there is no share cropping with local farmers at that area.
The sugar mill is currently reaching a negotiated settlement to turn the land over to the Government of the State of Alagoas to help settle an outstanding tax debt. The State of Alagoas in turn plans to donate the property to the Company as a fiscal incentive to promote economic development in the region. This type of arrangement is a common kind of incentive used by state governments in the less developed Northeast Region of Brazil to attract new projects and investments.

Neither of these voluntary land transactions will result in economic or physical displacement of persons.

Should the Company decide to acquire another property than the one described above, it will ensure that the negotiating and acquisition process complies with IFC’s PS 5 requirements.

Stakeholder Engagement

Bauducco engages with communities on an ongoing basis through the implementation of different social projects. These projects have strategic links with the company impacts and community needs.

This program includes proactive community engagement / communication activities such as contact and invitations to neighbors as already done at the Guarulhos plants, where neighbors were identified and contacted by the Social Assistance Unit. The program includes periodic contact and invitations for chats to help establish open channels of communication. The company will develop a formal procedure for addressing community complaints in all their plants, including with the new Rio Largo facility. Furthermore, the contractors under the construction phase will be required to have a communication and engagement plan with the local and affected community.

Bauducco has a Consumer Services Center (SAC) system in place that can be accessed through the internet: http://www.bauducco.com.br/bauducco.html, by phone via a toll free line at 0800 7011599, or by post: Caixa Postal 11039, CEP 05422-970. These contact options are widely announced through the Company’s consumer products. Most complaints that come through the SAC are related to product quality. The SAC is consistent with Brazilian consumers’ rights regulations. All claims are registered and a product replacement is offered. The defective products are analyzed and a monthly report of products claims is shared with managers and directors, who decide if any corrective action is needed.

Bauducco has a Social Investment Program that includes support for local organizations that assist poor children and mental disabled people. They actively support a Bakery Training Center at the organization to assist mentally disabled people (APAE) were they prepare and hire trainees for their social inclusion program. The Company will look for similar local opportunities for social responsibility investments in Rio Largo, AL.

Bauducco has an Open Factory program for the community interested in visiting its plants, mainly targeting school-age students.

**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

Local Access of Project Documentation

Press-Release

Related SII

Similar Projects

Information on E&S Complaints and Grievance Mechanisms

Disclaimer