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; and- PS3 Pollution Prevention and Abatement. The Company’s operations generate limited air pollution and noise that could affect the community in an area with mixed residential, industrial and commercial use hence PS4 is not triggered. The operational sites were purchased through a willing buyer willing seller process hence issues covered by PS5 are not relevant to this project. The project comprises of two sites, one located in N’Djamena city center surrounded with commercial and light industrial activities as well as residential properties and the other located in an industrial zone hence issues covered by PS6, PS7 and PS8 are not relevant to this project.

The Project is categorized as B because the Company’s operation consists of printing operation using vegetable based ink with limited environmental and social (E&S) risks that are can be readily mitigated. The potential key Environmental and Social risks identified during appraisal include health and safety matters during construction and operation. More specifically sponsor's capacity to manage (i) occupational health and safety; (ii) life and fire safety risks and the plant and storage facilities; (iii) indoor air quality; and (iv) housekeeping and solid waste management.

Imprimerie Aubaine Graphic SA Chad has presented IFC with information on its current practices and policies that that seek to address environmental and social risks and impacts to ensure that the proposed project currently complies with or will upon implementation of specific additional agreed measures, comply with host country laws and regulations and the IFC Performance Standards on Social and Environment Sustainability and Environmental, Health and Safety Guidelines. Findings of the IFC’s review and conclusions are summarized in the paragraphs below. Additional measures to be undertaken by the Company are listed in the attached Environmental and Social Action Plan (ESAP). PS1: Social and Environmental Assessment and Management Systems: Printing operations are not required by law to undertake and environmental impact assessment. As this is a small printing operation IFC’s due diligence is sufficient and no environmental impact assessment is required as part of this investment. Environmental permits are not delivered by the environmental authorities but rather the manufacturer has to register its activity at the Chamber of Commerce. The Company does not have a formal process to identify, assess, monitor and report on the environmental and social impacts of its operation. However, the Company did commission a third party waste management company to assess its waste stream and as a result solid and liquid waste are managed by this third party company (further information is provided in PS3 below). From an organization point of view, Environment Health and Safety (EHS) and social management aspects are not well integrated into the organizational management systems. Furthermore, there is no employee is designated with responsibility for EHS matters. Training on health and safety has been undertaken by a few employees but implementation on the ground is inconsistent. Accident reporting is undertaken for the purpose of reporting to Social Security - the Caisse Nationale de Prevoyance Sociale (CNPS) but not as a risk management tool. As part of this investment the Company is required to put in place an environmental management system as well as designate and train a person responsible for EHS, monitoring and reporting. IFC will provide the Company with a reporting framework that the Company will need to submit on an annual basis. Senior management will systematically employ the monitoring data in order to improve EHS performance. The Company has committed to seek ISO 14001 certification in the next two years. PS 2: Labor and Working Conditions: The Company has 23 direct full time employees and during peak production it employs up to an additional 28 temporary workers. The Company has a Human Resources (HR) manager who keeps files on all employees which are under either a long term or a short term contract. The contracts include terms of reference, salary, holidays, work hours, overtime rate, medical test requirement, and reference to applicable national labor law. The Company has an HR procedure and Code of Conduct available to employees at the site and HR office; these documents were explained to some employees as approximately 10% do not speak or read French. The labor inspectorate undertakes an audit on a yearly basis and no corrective measures have been noted. The Company has a performance evaluation system which rates employees on various set parameters and the outcome determines promotion and salary increases. Salaries are paid at the end of each month; however, the Company offers employees and opportunity to take an advance on their salary of up to 50% on the 15th of each month. Wages offered by the Company are based on market rate; low skilled short term employees are paid at least minimum wage. The Company provides interest free loans to employees for various purposes such as vehicle purchase and weddings. The Company invest in its staff by sending them to undertake technical training with duration that vary from 6 weeks to 1 year. A copy of the identification card or birth certificate is required from potential employees prior to employment. Minimum employment age is 18 years old. The employees including HR manager are unionized and have an elected workers’ representative. Grievances are addressed through the workers’ representative and get communicated to managing Director during monthly meeting. Should grievances not be resolved between the employees and the Company, the employees can also have recourse to the work inspectorate for mediation purposes. This intervention has so far not been solicited. The Human Resources Policy will be strengthened by integrating all HR documentation, articulating a HR policy, and outlining the performance evaluation system, and terms and conditions for expatriate workers. Copy of the amended HR Policy should be communicated to all employees. The Company provides the necessary personal protective equipments (PPE) such as boots, masks (on a monthly basis) and gloves for certain tasks to its employees. During the site visit, IFC’s observed failure to wear masks. Noise appears to be at acceptable levels where normal conversation can be carried out. The Company does not have written OHS procedures. As part of the Annual Monitoring Report to IFC, the Company will complete an accident reporting form and systematically analyze the root cause of accident. There are first aid kits at the site and the military hospital is less than 300m away from the site and as such injured or sick employees are taken to the hospital. The Company has 3 trucks for transport of raw material. Drivers have valid drivers’ licenses. No significant accident has taken place so far. Health and safety issues were also observed at the construction site, contractor’s employees were not wearing safety boots or masks. There are no first aid kits at the site. The Company will require the contractor to ensure safety at work site and will have its EHS officer regularly visit the site. The Company will request that the contractor have a first aid kit available and there is an adequate emergency response system in place. There were no fire exit signs or no smoking signs at the facility; extinguishers should be visible with clear instruction in a language understood by most employees and a label with the date of the last inspection. Some employees were trained in the use of fire extinguishers and to respond to small fire. The Company will undertake a fire risk assessment at its existing facility, all paper storage locations, and the new proposed facility. The fire station is located within proximity to the printing operation, however no emergency response simulation have been undertaken. An Emergency response drill must be undertaken at least annually, as well as trained fire wardens and muster point designated. The Company will ensure that material safety data sheets are displayed for all products used and will put in place procedures to ensure that its chemical storage and handling methods are strengthened. Furthermore, the Company will begin monitoring of workplace indoor air quality and temperature; particularly for VOCs in areas of the plant where air circulation is lower (i.e. the offset room), enforce wearing of masks where necessary, and ensure compliance with IFC guidelines. Following such monitoring, any necessary corrective actions will be implemented in order to reduce or eliminate health risks that may impact the workforce. PS3: Pollution Prevention and Abatement: Water resources are provided by municipal networks at the existing printing operation, and from wells at the proposed new storage site. Permit is not required to drill well but the water quality must be tested using WHO standards and authorization obtained for use as potable water. Water is not an issue in N’Djamena city center, there are sufficient water supply and reserve. Monthly water consumption (process and drinking water) is approximately 16,100 cubic meters a month. Electricity is provided from the national grid, total monthly consumption is only 2,300 kWh. To secure energy supply the Company heavily relies on its diesel fuelled 84kVa outdoor generator. The Company will ensure that the generator maintenance is adequate so that its emissions are maintained in accordance with manufacturer’s specifications. Diesel usage is approximately 1,300 liters a month. The facility is quite dusty due to Country’s climatic conditions and the nature of operation. The Company has a cyclone that vacuums the dust and this help reduce particulate matters. This should be taken into account in designing the new storage facility. Housekeeping at the facility need significant improvement albeit part of the site is in construction. Chemicals used by the Company are mainly water and vegetable based printing inks, very small quantities of mild solvent based ink, paper glues, alcohol and photo development solutions. Other materials include waste oil from machine parts, oil, and diesel to operate the generator. Storage of chemicals and other raw material. Effluents generated at the at the facility are sanitary, and storm water which drain into municipal networks and process water from washing parts which drain into a cement pit lined with a plastic storage tank that is emptied monthly by a licensed third party contractor for further treatment. Liquid waste mainly consists of the washings from printing rolls. The total effluent discharge is around 40 liters per month. Solid waste consists of small metal and plastic ink containers, plastic wraps, cardboard, paper, plastic and printing film. All solid waste is disposed by a licensed third party contractor. Green House Gas emissions are not significant due to the nature and scale of this operation.

There have no previous engagement on E&S issues by the Company, however as part of this investment, the ESRS will be disclosed locally at the Company’s office. In terms of community development initiatives, the Company favors recruitment within the local community near its operation. The Company is frequently solicited from the community to provide free printing services (free banners, print materials) for various causes such as for “The Women Day” initiative, association of human rights, football clubs, and schools.

Environmental and Social documentation will be made available in French at the following location: Imprimerie Aubaine Graphic SA Chad Avenue Charles De Gaule B.P : 1180 N’Djamena, République du Tchad Contact Person : Mr. Mahamad Béchir Adoum Telephone number: 235-662-00495