TNS has presented plans to address these impacts to ensure that the proposed Ethiopian Coffee Initiative will, upon, implementation of the specific agreed measures outlined in the Environmental and Social Action Plan (ESAP), comply with the environmental and social legal and regulatory requirements of Ethiopia and IFC’s Performance Standards and EHS Guidelines. The information about how these impacts will be addressed by TNS is summarized in the paragraphs that follow:
PS 1: Social and Environmental Assessment and Management Systems
Assessment. TNS adopted, in November 2009, its Sustainability Guidelines, which outlined its sustainability objectives for coffee production and processing. These objectives encompass (i) the promotion of agronomic best practices; (ii) responsible social coffee production, including no forced and/or harmful child labor in its supported Cooperatives and its members, compliance of national labor and occupational health and safety (OHS) acts and regulations, especially as it relates to minimum wage, working hours, safety conditions and improvement of sustainable livelihoods; (iii) use of ecology friendly technology in relation to wet mills, especially as it relates to protection of surface and ground water, energy efficiency, wastewater treatment, organic waste management (coffee pulp and raw mucilage), soil erosion, re-vegetation of riparian areas, (iv) social aspects related to wet processing (freedom of association and collective bargaining, no forced and/or child labor, equality of treatment, non-discrimination and minimum wage, working hours, employee relationships and written contracts and OHS conditions).
Based on the above, TNS has already adopted some elements of an integrated management system, which covers quality-assurance, environmental management and occupational health and safety. TNS will further consolidate and implement this system through the preparation of procedures, the development of training curriculum and its delivery, and monitoring and reporting to ensure that its sustainability objectives and guidelines are effectively implemented at the sub-project level, as outlined in the Environmental and Social Action Plan (ESAP).
Site selection for the installation of wet mills is based on a number of criteria, which include the size needed (from 0.5 to 1.5ha depending of the processing capacity of the wet mills), accessibility for trucks and cooperatives members, moderate slope (between 10-15°), availability of gravity-fed water, and existence of a buffer zone of 30 meters to protect surface water streams and/or wetlands. Once three potential sites are identified that meet the above criteria, a site survey is undertaken by an independent local civil engineer and a water specialist for final site selection and site planning. As part of their due diligence, the two specialists are being guided by TNS’s Sustainability Guidelines and its wet mill construction manual. A Wet Mill Environmental and Social Compliance (WMESC) Report will be prepared for any new wet mills installation. TNS will provide for each of the 20 wet mills established in fiscal year 2009, the mitigation measures, responsible parties, and timetable for the rehabilitation of these sites, as outlined in the ESAP. The natural resources officer, attached at the District Agricultural Office in Jimma will also conduct regular site inspections to check technical adherence with the proposed mitigation plan.
Management Program and Organization. In accordance with its organizational chart adopted in 2008, TNS has established the position of Environmental, Social and Certification Manager in its Eastern African team. The manager’s responsibilities include the development and implementation of the Sustainability Guidelines and related manuals. The operational translation of these requirements will be further documented by the preparation of a WMESC Report, as prescribed in the ESAP, and the preparation of an Environmental and Social Management Plan (ESMP) for each wet mill. This manager is also responsible for training the Business Advisors (BAs) and Cooperatives on OHS related issues and the implementation of the ESMP.
Training. TNS is in the process of developing a training curriculum for Ethiopia that will promote agronomy best practices for cooperative farmers and will ensure the effective on-the-ground implementation of its existing Sustainability Guidelines and related manuals, which address site planning and the establishment of buffer zones with ecological sensitive ecosystems (surface water, wetlands), the promotion of efficient water and energy consumption, wastewater treatment, solid waste management, etc. for the installation of wet mills. In addition, by September 30, 2010, training curriculum on OHS measures at wet mills will be finalized and delivered to all TSN’s Business Advisors in Jimma supporting the selected Cooperatives. This curriculum will ensure the effective training of cooperative employees assigned to wet mill operation. The training curriculum, delivery schedule and cooperatives to be reached will be provided to IFC, as set forth in the ESAP. TSN will assign a qualified resource-person for the preparation and implementation of the ESMS and related training program.
Monitoring and Reporting. TNS will continue to develop and implement a comprehensive environmental monitoring and reporting procedure which will encompass 1) implementation of its corporate ESMS; 2) screening (WMESC report), implementation (Wet Mill Site Approval Report) and monitoring of mitigation measures at each wet mill; 3) positive environmental and ecosystem impacts of its agronomy best practices as implemented by cooperative farmers, as prescribed in the ESAP (note: since the agronomy training will only start in September 2010, there is no environmental and/or ecosystem impact reporting which will be available prior to June 2011). This monitoring and reporting procedure will assess the effectiveness of: the mitigation measures outlined in the WMESC reports of each wet mill, the processing performance benchmark, and the ecosystem performance indicators among coffee growers, , as outlined in the ESAP. The benchmarks will include quantitative indicators for water consumption and energy use per kilo of cherry, compliance with the requested buffer zone, soil erosion measures, and re-vegetation efforts. The ecosystem performance measures will include erosion control, biodiversity and forest conservation, and wildlife protection.
Community Engagement. In accordance with its due diligence process, TNS is working in cooperation with the Wereda (District) Agricultural Office, including its Natural Resources officer, the Wereda Cooperative Office and the Wereda Administration to ensure that all authorities are well informed on the project implementation status and supportive through its Field Extension Officers. In addition, downstream communities impacted by water abstraction will be consulted during the WMESC preparation process, as outlined in the ESAP.
Supply chain assessment. Under the Ethiopian Coffee Initiative, the coffee produced is primarily sourced from farmers registered at selected Cooperatives. As the initiative expands and the processing capacity at each wet mill increases, it is expected that farmers will seek to join Cooperative members, based on TNS’s technical assistance in increasing high quality Arabica yields through the agronomy best practices, easy access to sell their production, added-value through the wet mill processing (wet vs. existing dry process), and improved revenues from facilitating sale of specialty coffee to responsible buyers. As such, TNS will seek to expand the adoption of its Sustainability Guidelines to these new members.
PS 2: Labor and Working Conditions
Human Resource Policy and Management. TNS has an existing total workforce of 49 professionals (as of March 31, 2010) working for the CI in Ethiopia. More than 50% of the professional (BAs and assistants) are based in Jimma. TNS has opened satellite field offices in Limu and Bedele towns in the first quarter of 2010.
TNS has a Human Resource Policy. This Policy outlines in its Employee Handbook, TNS’s mission, company values (e.g. non-discrimination and equal treatment – note: a sexual harassment training course is provided to all new recruits), personal code of conduct and procedures for selection, hiring, training, promotion, resignation, retrenchment and firing. It specifies the terms of employment for different categories of appointments and employee’s working conditions (e.g., working hours, training, salary scale) and benefits (communication, transportation and living allowances, medical and life insurance, pension, leave). TNS assesses and reports on individual employee performance bi-annually. All policies, procedures and guidelines are made available to employees and comply with Ethiopian labor laws.
TNS’s Human Resources Manager manages the policy’s implementation and all HR related activities. TNS promotes staff recruitment based on merit without regard to gender, ethnicity, and religion. Since all employees are recruited on an annual contract basis, there is presently no elected union at TNS, nor a labor welfare committee. However, there is no restriction on freedom of association and there is a specific provision in the HR Policy for dispute settlement procedure. TNS has established its salary scale as a result of a wide-ranging salary survey among NGOs and Ethiopian institutions in late 2008. Remuneration level always exceeds the minimum wages, and the general employment conditions are well above Ethiopia’s standards.
CI’s selected cooperatives have 200 to 1,000 members. On average, there are five cooperative members who are recruited for the operation of the wet mill (manager, accountant, machine operator, warehouse storekeeper, guard). During the harvesting season (September to December), more than 40 casual laborers are recruited and paid on a daily basis, in accordance with the minimum salary as stipulated in the Ethiopian Labor Act. There is no reference to the recruitment process for these casual laborers in the cooperative by-laws. However, the TNS’s BAs assigned to wet mills ensure that the recruitment process is transparent. Training for Cooperative’s Executive Committee members is provided on this matter.
There is no forced and/or harmful child labor that is involved in the coffee production and/or in the wet mill processing under the CI. There are specific provisions in TNS’s Sustainability Guidelines to this effect. In order to ensure effective implementation of these guidelines, all BAs assigned at each wet mill are training the Cooperatives members and undertaking field monitoring among registered farmers.
Occupational Health and Safety (OHS). As outlined in its Sustainability Guidelines, TNS ensures that its workers and/or cooperative members are adequately trained with respect to OHS issues. A training session was provided prior to the 2009 harvest. TNS intends to further implement its OHS procedures and training to BAs and wet mill’s machine operator. Action steps in the ESAP will address OHS deficiencies identified during the field appraisal (cramped machinery platforms, no evidence of warning signs, exposed wiring, etc.) As per Performance Standard 2, the OHS requirement is applicable to TNS’s direct employees, cooperative’s employee and contractors.
TNS has adopted a HIV/AIDS Policy which foster a spirit of understanding and compassion for HIV-infected and affected staff, raise awareness on prevention by providing staff adequate educational and informational materials, does not require pre-employment HIV/AIDS testing as a condition of employment, and treats all medical information, including individual’s HIV status, with utmost confidentiality.
Ps 3: Pollution Prevention and Abatement
Pollution prevention, resource conservation and energy efficiency. As stipulated in its Sustainability Guidelines, TNS is aiming to promote best agronomy practices in coffee production and the use of best available technology in coffee processing.
Agronomy Best Practices. TNS will implement, starting in 2010, an agronomy program, which will promote best practices in the coffee plantations of its selected cooperatives. This program will include rejuvenation and pruning, nutrition and soil resources management (addition of lime where required, provision of organic fertilizer such as compost and composted manure, soil erosion and moistures techniques such as mulching), integrated pest/disease management and promotion of coffee varieties resistant to the main coffee tree diseases, integrated weed management, conservation of primary forests and related biodiversity through maintenance of shade system, environmental conservation and biodiversity. To support the implementation of this agronomy program, TNS cooperates with the Jimma’s Agricultural Research Center. Coffee certification is not directly promoted by TNS. The aim is to bring all coffee growers up to the minimum requirements of all certification programs to ease certification process, if it happens. Presently 9 out of the 20 cooperatives are certified organic, of which 3 are also certified Fairtrade.
Technology selection. TNS is promoting the Compact Ecological Wet Processing Unit in its selected cooperatives. This is the latest technological initiative for the wet process, based on the principle of reducing the water used during pulping and mechanizing the washing process through a mechanical remover called “DELVA”, consuming barely 1 liter of water per kilogram of dry parchment coffee. This technology reduces water use by 90% compared to traditional “ferment-and-wash method”. Another advantage of this process is the separation of pulp and mucilage, byproducts otherwise considered as waste, generating an immense opportunity for the coffee grower to be used as organic fertilizer and for mulch.
Construction phase. Potential pollution issues for the construction phase of the wet mills are those typically associated with construction sites and include, amongst others, increased water and soil erosion, landscape modification, discharge of contaminated (high silt loads / oil and grease) storm water, diesel and oil spills, and worker’s safety and health risks. In addition, there is the potential for nuisance impacts (e.g., noise and dust) in the surroundings. These impacts may be effectively managed with the implementation of proven engineering practices as outlined in the EMP for the construction phase, as stated in the ESAP. To ensure TNS’s existing cooperatives are in compliance with these guidelines, specific rehabilitation plan are required, as outlined in the ESAP. Action steps in the ESAP will address deficiencies in terms of site planning and layout and construction standards of the wet mill (compliance with the required 30 meters buffer zone with riparian areas, secured working space for the machine operators, alignment and lining of the waste water channels and lagoons, soil erosion around wet mills and drying areas due to absence of contour and vegetation cover, unstable soils for workers, fencing of the perimeter, where appropriate, presence of bunds around solid organic wastes and the evaporation lagoons, etc.).
Operational phase. The primary waste streams from the wet mills are process effluents from two sources, namely the pulping water and the soaking cum wash water. These effluents are characterized by high BOD, high total suspended solids and acidity, especially in the context of the low water usage from the wet mill. The wastewaters are being channeled into stabilization cum evaporation ponds/lagoons of 3x3x2m size. An overflow lagoon is also provided. Inoculation with effective microorganisms (known as “effective microbe” technique) is stimulating the breakdown rate and gets rid of the rotting smells. This is supported by bio-filtration with grasses (Vetiver and giant bamboo) which are available in project areas. Growing Vetiver around the ponds also act as natural barriers to prevent people falling into the ponds. The remaining organic wastes in the ponds are cleaned up after harvest and can be used as a soil fertilizer. Organic waste (coffee pulp accounts for 40% of the coffee cherry) is contained by earth bunds and Vetiver hedges to prevent seeping of acidic liquid into surrounding aquatic ecosystems. The resulting compost is being used by coffee growers as an organic fertilizer. Domestic sewage, generated from the latrines, is captured into a soak pit. There is no hazardous waste generated at the wet mill, aside from the small volume of used oils, which are being used for termite treatment on the eucalyptus poles used for the drying tables. No fumigation is required at the warehouse.
Water is being sourced from neighboring surface streams and/or springs. Energy is being provided by energy efficient petrol or diesel engines of 12 or 20 hp built into the wet mill. The diesel drum next to the mill will be provided with secondary containment structures for spill prevention. The diesel generators will be maintained on a regular schedule to ensure operation according to manufacturer’s specifications.
PS 4: Community Health, Safety and Security
During the operational phase, the key identified risk is fire, and TNS, therefore, shall recommend to Cooperatives the purchase at least one extinguisher. A fire response plan will be prepared by TNS’s Environmental Manager and training will be provided to the TNS’s BAs, mill manager, machine operators and warehouse keeper, as set forth in the ESAP.
Armed security personnel are assigned at each wet mill to prevent theft of parchment, equipment and materials. Security personnel are trained in the use of force for defensive purposes. A letter of recommendation is provided by the Local Administration (Department of Security and Local Police) for each guard. Thief risks for cooperatives exist since most of the purchase activities at multiple collection points are on cash-only basis. However, the amounts are judged minimal (max. $300 US). No incidents of armed robbery, either at cooperatives warehouses or at collection points have been registered.
PS6: Biodiversity Conservation and Sustainable Natural Resources Management
As part of the East Africa Coffee Initiative, TNS will implement an agronomy program reaching several of the Cooperatives and their members. The impact of this program is expected to prevent degradation of natural habitat from coffee production as the coffee farms supported by the project are already existing and classified either under semi-forest or garden type. In addition, this program will support maintenance of indigenous trees and afforestation where required.
