While all Performance Standards are applicable to this investment, IFC’s Environmental and Social (E&S) 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; and -PS3: Pollution Prevention and Abatement. Issues relating to Community Health and Safety (PS4), Biodiversity and Natural Resource Management (PS6), Indigenous Peoples (PS7), Cultural Heritage (PS8) have not been identified during IFC due diligence process and are not expected as the NOSA Sarl plant is located in an industrial zone with very small number of people/resident nearby. Land Acquisition and Involuntary Resettlement (PS5) has been reviewed and deemed not applicable since it’s through willing seller willing buyer.

This is a category B project as the key environmental and social impacts from this soap manufacturing activity are related to air emissions, liquid effluents, waste disposal, fire, and employee exposure to noise and dust. These impacts are limited can be mitigated and/or avoided through specific mitigation measures in adherence to generally recognized performance standards, guidelines as well as the development of an environmental and social Action Plan.

NOSA Sarl has presented information on its current practices and information that address its E&S risk and potential impacts. In addition, it has agreed to undertake the additional measures necessary to bridge the gap between its current practices and requirements of host country laws and regulation, as well as IFC’s Performance Standards on Social and Environmental Sustainability. These specific measures are outlined below and more specifically within the Environmental and Social Action Plan attached. PS1: Social and Environmental Assessment and Management Systems NOSA Sarl has a designated person responsible for environmental issues amongst other responsibilities and there is a separate committee in charge of Occupational Health and Safety (OHS). There are some established procedures on chemical storage, handling and disposal, however, the company has not established a systematic process to evaluate environmental and social risk. The person responsible for environmental issues is also responsible for other functions within the Company; on the environmental front this person mainly manages waste water and housekeeping issues. The Company has provided IFC with a monitoring report on its environmental, occupational health and safety activities during 2008. The report included quantitative data relating to effluent discharge, list as well as description of incidents, spills, and training activities. Accidents are reported to the head of Human Resources. The committee on Occupational Health and Safety keeps a report of all accidents including root cause analysis. A copy of this report is sent to Social Security Services. The Company has agreed to develop an environmental and social management system (ESMS) that will take into account the governing environmental regulations, OHS regulations and IFC Performance Standards. The ESMS should include the Company’s: (1) policy and procedures on environmental and social risk assessment and mitigation, (2) description of the management program (including OHS and emergency response system) and the role of environmental health and safety officer as well as other authorities in implementing the management program, (3) have a process to identify training needs of the employees responsible for implemented the management program, (4) monitoring system to measure the performance of the management program (5) internal reporting of the performance of the management program including follow up actions, and (6) community engagement. PS2: Labor and Working Conditions The Company has 120 employees of which 18.5 % are women. It doesn’t have a formal Human Resource (HR) Policy, however the company follows national labor laws and the “National Collective Convention of Manufacturing Companies in Cameroon” (NCCMCC) which are set of rules of engagement and labor practices agreed between the unions of workers and the unions of employers. A copy of the NCCMCC can be found within each department in the Company. Employment verifications are undertaken and a minimum age of 18 is required to be employed with the Company. At the time of employment, each employee is provided with a work contract that includes information on wages, benefits, working hours, holidays, and maternity leave as well as copy of the NOSA Sarl internal operational rules “Règlement Intérieur” which also includes disciplinary actions. The Company minimum salary is CFA 42, 250 whilst the minimum wage in Cameroon is CFA 28,216. In conformity with the Camaroonian Labor Regulations all NOSA Sarl employees are registered with the Social Security Services (la Caisse Nationale de Prévoyance Sociale) in order to have benefits such as pension, accident protection, and family allowance. Since January 2009 the Company provides its employees with medical insurance benefits whereby 80% of the cost are assumed by the insurance company. Onsite housing is provided to security guards and it includes sanitary facilities and potable drinking water. Employees can express their grievances through 8 workers representatives elected by the workers. Workers representatives are provided with a registry for workers to log their grievances. These registries are the basis of monthly meetings between worker representative and HR and are used to devise corrective actions to worker grievances. The employees are free to join unions but to date HR is not aware of any employees who have joined a union. Unions are free to solicit NOSA Sarl employees. During the last site visit, IFC environmental specialist noted that (1) workers were not wearing adequate PPE such as ear plugs in noisy areas, hard hats, appropriate shoes; (2) housekeeping and general signage needed some improvement; (3) fire extinguishers have been recently inspected. In 2008, OHS training provided by staff from the Labor Ministry was undertaken by the members of the OHS committee who then in turn regularly train the employees. As indicated above, the Company does have a system to track accidents and undertakes root cause analysis of each accident. In order to meet PS2 requirements the company has agreed to join its various documentation on human resources into an integrated human resource policy. PS3: Pollution Prevention and Abatement Effluent Management The construction of the effluent treatment plant has begun but it’s not yet completed. The requirement of the effluent plant include a mechanical plant to control Biological Oxygen Demand (BOD), Chemical Oxygen Demand (COD), oil and grease, pH, neutralization, and sedimentation. Currently after treatment the effluent is discharged into a soak away. The Company monitors its effluent discharge and has provided the results to IFC as part of the annual monitoring report; IFC noted exceedance in COD. Energy and Water Use and Consumption Source of energy include local grid as well as 410 kVA Generator which is used 502 hours a year. The estimated energy use per ton of production is 903 kWh. Sources of water used by the company include (1) municipality which is mainly used for drinking purpose and (2) wells which is used for the production. The estimated water use per ton of production is 600 liters. Hazardous Waste Material During IFC site visit by an environmental specialist, it was noted that all hazardous chemicals were stored adequately within a secondary containment. Solid Waste Management Solid waste mainly consist of fugitive material and soap which will be recycled back into the production process; packing and paper waste is disposed of by local authorities. Waste not accepted by local authorities is disposed of by locally licensed companies in compliance with local law

The local community is relatively small due to the location of the Company within an industrial area. No complaints have been received so far from the community.

This ESRS will be translated in French and made available locally at the following locations: Municipal office: Mairie d'arrondissement de Yaounde 6eme, Biyem Assi, Rond-Point, Yaounde, Cameroun Company's office: Nosa Sarl, Lieu dit Simbock, Ayala, Axe lourd Yaounde-Douala, BP 5524 Yaounde Cameroun Availability of this document at these locations will be advertised in a local newspaper.