Environmental & Social Review Summary
Project Number
31195
Company Name
PROTEAK UNO, S.A.B. DE C.V.
Date ESRS Disclosed
Feb 13, 2012
Country
Mexico
Region
Latin America and the Caribbean
Last Updated Date
Jun 12, 2021
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Mar 16, 2012
Signed : Jul 9, 2012
Invested : May 8, 2013
Sector
Plantation Forests
Industry
Agribusiness and Forestry
Department
Gbl Ind, Manufact, Agribus & Services
Project Description
Proteak Uno S.A.P.I.B de C.V. (“Proteak” or the “Company”) is a mid-sized publicly-traded Mexican company engaged in development of teak forest plantations and primary processing facilities in Mexico, Central America and Colombia. The Company has planted or acquired approximately 8,000 hectares of plantations in Mexico, Costa Rica and Colombia and also conserves some 3,000 hectares of natural forest in areas within and adjacent to its plantation holdings. All of the Companies’ forest assets are managed in material compliance with applicable forestry codes, environmental and labor regulations, and IFC’s Performance Standards on Environmental and Social Sustainability. In addition, all Company plantations are managed in conformance with the Forest Stewardship Council’s (“FSC”) Principles & Criteria for sustainable forest management and plantations older than five years have been certified by the Rainforest Alliance’s SmartWood Program. The Company has a valid FSC Chain of Custody (“CoC”) certification for its operations, including sawmills, indicating that the Company is able to track the legality and sustainability of its wood supply.
Overview of IFC's Scope of Review
During appraisal, IFC assessed Proteak’s forestry and wood processing practices against IFC’s Performance Standards, local regulatory requirements and applicable requirements of the World Bank Group’s General and sector-specific Environmental, Health and Safety (EHS) Guidelines (Forest Harvesting Operations and Sawmilling and Wood Based Products, 2007). IFC reviewed the environment and social risks and impacts associated with the proposed project through site visits to Company plantations, nurseries, and wood milling facilities in Mexico, Costa Rica and Colombia. The team conducted interviews with field staff, contractors, and consultants at each location and reviewed Company policies, procedures and actual practices. For some plantations which were being acquired during appraisal prior management practices and FSC audits were reviewed and documentation of labor and occupational health and safety (OHS) practices examined to the extent possible. The appraisal relied largely on documents and reports made available by the Company and publicly disclosed audits of forest and financial performance, including:
- Environmental permitting and licensing documentation;
- Spatial and cartographic information about plantations and natural forest assets;
- National Forest Management Policies;
- Company Forest Management Practices and Procedure Specifications;
- FSC Assessment and Surveillance Reports (SW-FM-002110; SW-FM/COC-000098; SW-FM/COC-004221);
- Contract agreements with principle contractors and suppliers; and
- Workplace safety procedures and accident reports.
Through this review process, an assessment was made of the effectiveness of the Company’s environmental and social management system and its ability to ensure and monitor compliance with regulatory requirements and IFC’s Performance Standards.
- Environmental permitting and licensing documentation;
- Spatial and cartographic information about plantations and natural forest assets;
- National Forest Management Policies;
- Company Forest Management Practices and Procedure Specifications;
- FSC Assessment and Surveillance Reports (SW-FM-002110; SW-FM/COC-000098; SW-FM/COC-004221);
- Contract agreements with principle contractors and suppliers; and
- Workplace safety procedures and accident reports.
Through this review process, an assessment was made of the effectiveness of the Company’s environmental and social management system and its ability to ensure and monitor compliance with regulatory requirements and IFC’s Performance Standards.
