IFC’s environmental and social review reveals that the investment will have impacts that must be managed in a manner consistent with the following IFC Performance Standards (PSs) on Social and Environmental Sustainability: PS1: Social and Environmental Assessment and Management Systems PS2: Labor and Working Conditions PS3: Pollution Prevention and Abatement PS4: Community Health, Safety and Security The following PSs were screened for but not found relevant for the project: PS5 (Land Acquisition and Involuntary Resettlement) as the building and the adjacent area had been abandoned for a considerable time and were acquired for accommodation of new office premises consistent with national legal requirements from private owners and a legal entity through a willing seller/willing buyer market transactions; PS6 (Biodiversity Conservation and Sustainable Natural Resource Management) because the Project has no impact on biodiversity; PS7 (Indigenous People) and PS8 (Cultural Heritage) since the current project is carried out in a developed urban area with no prior cultural asset history and there are no indigenous people.

This is a category B project according to the IFC’s environmental and social review procedure. The Project’s limited environmental and social adverse impacts can be avoided or mitigated by adhering to national laws and regulations, generally recognized performance standards and guidelines. Key EHS and social impacts/issues of the project include: - EHS and food quality management system capacity to address current and future risks; - Labor and working conditions, including occupational health and fire safety; - Refrigerants used; - Staff safety due to a location within a seismic active region.

Tajero has presented plans to address environmental and social ( E&S) impacts to ensure that the proposed Project will, upon implementation of the specific agreed measures included in the Environmental and Social Action Plan (the “ESAP”) attached to this summary, comply with the environmental and social requirements of host country laws and regulations; IFC’s Performance Standards and relevant elements of the World Bank Group (WBG) Environmental Health and Safety Guidelines. The information about how these potential impacts will be addressed by the Group is summarized in the paragraphs that follow. PS1: Social and Environmental Assessment and Management Systems National legislation includes requirements for new projects with potential negative E&S impacts to carry out environmental impact assessment (EIA) studies and develop mitigation measures followed by approval and issue of operating permits. Tajero strictly adhered to national legal requirements applicable to its chocolate production launched recently. Mitigation measures have been implemented including fire safety, rehabilitation of a runoff collection and discharge system, installation of abatement equipment to keep air emissions within local limits. Documentation has been reviewed by relevant authorities; and operational approvals have been received prior to commissioning of facilities. E&S approvals and permits will also be required for the newly acquired building being repaired for future office premises. To ensure compliance with legal regulations Tajero will conduct studies appropriate to the scale of potential adverse impacts and submit copies of relevant approvals and permits to IFC. The current EHS management system includes major elements to control current E&S aspects; in this respect, Tajero intends to improve its management system through development of the EHS organizational structure covering core businesses of the Group including sausage and chocolate production and food product storage and distribution. Roles and responsibilities will be assigned to line managers or appointed specialists and coordinated by a representative of Tajero management who, apart from other responsibilities, will govern EHS issues to ensure compliance with national legislation and IFC’s performance standards. To ensure food products quality, the Group has been establishing the food safety management system based on ISO 22000/ HACCP (Hazard Analysis and Critical Control Points) principles. As of now, Tajero has developed the initial food safety plans for sausage and chocolate operations, as first priority actions. Going further, the Group commissioned a local consultant for development and gradual implementation of the food safety management system the scope of which will include chocolate operations, at first, and then sausage production. The draft program for implementation of the food safety management system including training of key staff and schedule of implementation has been developed. Reporting on Tajero EHS performance to IFC will be carried out within the context of the Annual Monitoring Report. PS2: Labor and Working Conditions Since IFC’s first project with Tajero, the Company has developed an official human recourses policy compliance with Performance Standard 2, defined employees’ rights and labor protections, including right /freedom for professional associations, trade unions; use of non-discrimination on grounds of employee gender, race, age, ethnic and religious association, or nationality in employment; prohibition of child and forced labor. The policy is applicable to all businesses of the Group. Tajero employs about 380 permanent staff and 100 trade agents. Temporary workers are used to meet seasonal customer demands. Tajero provides sufficient support facilities for employees’ work including changing and wash rooms, onsite canteen. Also, Tajero undertakes measures to attract and retain professionals through careful selection of new employees from students and compensation of their further education and training. Tajero adheres to national labor laws and maintains written contracts with permanent and temporary staff where general working conditions including salary, working time, annual leave and obligatory medical insurance are documented. Internal regulations supplement conditions of contracts and set up essential terms of employment including employees’ and management’s rights and responsibilities, hours of work, wages, and leave for illness. The Group has developed a formal grievance procedure consistent with IFC’s Performance Standard 2. Tajero has reported zero workplace safety-related incidents throughout the last three years. Occupational health and safety (OHS) risks associated with food processing and product storage and distribution are limited to heavy physical labor at loading-unloading operations, exposure to high temperatures, noise and workplace dust concentrations during food processing and possible exposure to cleaning chemicals. Most food processing operations are automated with no access to production facilities. Processing facilities are equipped with safety features including thermal insulation and guarding of moving parts. OHS training and personal protective equipment is given to staff depending on specific OHS conditions. Availability of medical certificates for personnel contacting with food processing is obligatory; medical services are provided by local clinics. Additionally, Tajero arranged and maintains regular on-site medical examination of drivers and first-aid to facilitate prevention of vehicle collisions and workplace incidents. The Group contracts a competent consultant to control life and fire safety (L&FS) aspects regularly; facilities are equipped with fire extinguishers. The L&FS system has been enhanced through fire-resistant coating of warehouse ceilings, the construction of a detached firewater tank, installation of a firewater pump and fire hoses sufficient to cover warehouse and office areas. It is supported by staff training, L&FS system maintenance and inspections of relevant authorities. Safety of personnel during seismic activities is a key issue for the project as it is situated in the active seismic zone. The Group will ensure that structural elements of the building being repaired for new offices are made in accordance with regulations for the constriction in active seismic zones; automatic firefighting system is designed and installed; and an evacuation plan is developed. PS3: Pollution Prevention and Abatement Heat and power for processing and building services are sourced from the public grid. Water is supplied from the municipal mains. Direct air emissions are limited to sugar powder releases and are kept within local limits through bag filter installed on sugar grinding machine. Wastewaters are minor in volume and discharged to the municipal treatment system. Tajero will monitor liquid effluents from sausage production and if necessary will develop treatment such that effluents meet World Bank Group/ IFC guidelines for liquid effluents. The Group has been developing a waste management plan for core businesses including the chocolate and sausage production, lorry park and car repair workshops and warehouses with the aim of minimizing waste generation and environmentally sound waste disposal. In this respect Tajero has consulted relevant authorities for contracting of specialized contractors for waste recycling and landfills. As of now, special areas are arranged for temporary segregated storage of wastes. Application and storage of chemicals used for premises cleaning is maintained in accordance with national regulations and controlled by operational personnel and supervisory authorities. Pest control is undertaken through agreements with competent authorities. Refrigeration systems are based on R 404 and R22. Tajero has defined maintenance and inspection schedules with the intent to minimize leakage of these refrigerants which are greenhouse gases, and in the case of R22 also an ozone depleting substance. The Group has been developing a phase-out plan with the aim of having R22 replaced. No new refrigeration systems based upon R22 will be installed. Tajero has agreed to use reasonable effort to assure the cocoa supplies used in the chocolate production are sourced from sustainable suppliers, and report on this in the Annual Monitoring Reports. Estimated greenhouse gas emissions from operation of refrigeration equipment, consumption of electricity and fuel average 1400 tonnes per annum carbon dioxide equivalent. PS4: Community Health, Safety and Security Tajero is aware of risks to community health and safety that can occur due to food hygiene shortcomings, and the consequential risk to company reputation. To address the potential issue the Group has implemented following actions. Standard food safety measures used for food processing include separation of dirty and clean zones; staff hygiene (clothes, shoes, gloves and hair coverage); equipment and premises cleaning. Raw materials purchased for chocolate and sausage production have food safety certificates confirming product quality and compliance with typical microbiological standards. Since IFC’s first project, Tajero has developed and maintains monitoring and recording of warehouses indoor conditions (temperature and humidity) for products’ storage to ensure food quality. Also, initial food safety plans that, inter alia, included staff training, regular on-site sampling tests of raw materials, processing equipment maintenance and cleaning were developed and implemented for sausage and chocolate operations. Going forward, Tajero, as mentioned above, is developing a program for implementation of the food safety management system based on HACCP/ ISO 22000 principles. It will cover, among other actions, quality control of raw materials and incoming potable water, staff hygiene and training, customer complaints mechanism. Tajero does not use contracted guards; its own unarmed staff selected after multilevel interviews and probation period provides access control to Tajero’s facilities. Personnel are trained onsite in appropriate conduct toward workers and local communities in line with Tajero’s safeguard regulations and local laws.

The Group discloses general information on its business activities and plans through its web site HYPERLINK "http://www.tajero.tj/index.htm"http://www.tajero.tj/index.htm , marketing and promotion actions and advertising. Additionally, Tajero will disclosure locally information related to the proposed IFC investment. Disclosure will be based on IFC’s findings on the project E&S aspects and will be done in an appropriate manner through local newspapers and Tajero website.

For more information about the project and local access of documentation, please contact: Mr. Gaibullozoda Abdurakhmon Director General Tel: +992 37 234 26 76/77; +992 44 601 11 22/33 Fax: +992 37 234 26 78 Website: HYPERLINK "http://www.tajero.tj/index.htm"http://www.tajero.tj/index.htm Address: 3 Kushteppa site, Jamoat Rossiya, Rudaki district, Dushanbe, 735103, Tajikistan