While all Performance Standards are applicable to this investment, IFCs 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. If IFCs investment proceeds, IFC will periodically review the the project’s ongoing compliance with the Performance Standards

PS 1 – Assessment and Management of Environmental and Social Risks and Impacts
PS 2 - Labor and working conditions
PS 3 - Resource Efficiency and Pollution Prevention
PS 4 – Community Health, Safety and Security
If IFC’s investment proceeds, IFC will periodically review the the project’s ongoing compliance with the Performance Standards
In India, the proposed expansion will be done on JISL’s existing own premises. In some cases, additional land is purchased in the vicinity of existing operations, on willing-buyer willing-seller basis at market value. In Turkey too, the proposed expansion will be carried out within the existing premises of the company. As such, PS5: Land Acquisition and Involuntary Resettlement, does not apply. The project sites are in well developed industrial areas, where there are no impacts on biodiversity, indigenous peoples, or culturally sensitive sites. Hence, issues related to PS6: Biodiversity Conservation and Sustainable Natural Resource Management, PS7: Indigenous Peoples and PS8: Cultural Heritage are not applicable for the project.

This is a Category B project according to IFC’s Environmental and Social Sustainability Policy because a limited number of specific environmental and social impacts may result that can be avoided or mitigated by adhering to generally recognized performance standards and guidelines.

Key E&S issues related to this project include: adequate social and environmental assessment of the impacts of the Project during both construction and operations; implementation of social, environmental, health and safety management systems; assurance of fair, safe and healthy working conditions during construction and operations; utilization of equipment and operational practices that maximize conservation of energy, water and process materials including recycling and reuse initiatives; management of air emissions, wastewater treatment and discharge, and solid and other waste disposal; the impacts of operations on local ambient environment; and impacts on transport infrastructure during construction and operations.

IFC's appraisal considered the environmental and social management planning process and documentation for the project and gaps, if any, between these and IFCs requirements. Where necessary, corrective measures, intended to close these gaps within a reasonable period of time, are summarized in the paragraphs that follow and (if applicable) in an agreed Environmental and Social Action Plan (ESAP). Through the implementation of these measures, the project is expected to be designed and operated in accordance with Performance Standards objectives. The Company has presented plans to address these impacts to ensure that the proposed Project will, upon implementation of the specific agreed measures, comply with the environmental and social requirements including: the host country laws and regulations; IFC’s Performance Standards; and the World Bank Group (WBG) Environmental, Health and Safety (EHS) guidelines. The information about how these potential impacts will be addressed by the Company is summarized in the paragraphs that follow.

IFC’s assessment considered the Company’s management of its EHS performance in the establishment and operation of its facilities; compliance with national and local permit requirements; and the Company’s engagement with local communities as well as its suppliers, regarding EHS performance and corporate social responsibility (CSR).

- Environmental & Social Assessment and Management Systems. JISL’s management proactively addresses EHS aspects associated with its operations. JISL has articulated quality, health and safety, environmental and social accountability policies covering all its facilities worldwide. As a corporate policy, JISL is implementing across all its facilities EHS management system (EHSMS) certified to ISO 14001 and OHSAS 18001 standards, with IFC’s Performance Standards and WBG EHS guidelines are duly embedded in the EHSMS as applicable requirements. Food processing facilities are certified to standards such as ISO 22000:2005, HACCP and Food Safety standards, British Retailer Consortium standards, Codex Alimentarius, Kosher standards etc. All of JISL’s owned agricultural sites (farms and plantations) are EUREPGAP certified; and its tissue culture lab is ISO 9001 certified, and central laboratory operations have certification from National Accreditation Board for Laboratories (NABL), India.

Jain Turkey facility has quality management system certified compliant with ISO9001 by Swiss TS. In line with corporate policy and guideline, Jain Turkey has received certification for its EHSMS against ISO 14001 and OHSAS 18001 standards in January 2012.

- Organization. The Company has fulltime team of qualified professionals for oversight of EHS aspects at corporate level as well at the individual facilities / production units. The teams at individual facilities report to the corporate team on EHS issues.

- Monitoring & Reporting. JISL has implemented procedures to monitor and ensure that facility emissions and discharges; ambient air quality and noise levels; management of hazardous materials, hazardous wastes and other wastes are in accordance with both host country requirements and WBG EHS guidelines. For this purpose, JISL’s has an elaborate monitoring and reporting program covering all its facilities. Accordingly, JISL corporate team receives daily reports related to raw materials, production, downtime, scrap, energy consumption etc. from all the facilities. This information is then compiled for Group-wide benchmarking. Going forward, JISL shall include safety related parameters such as “lost time accidents” and “near misses” in this reporting program. JISL reports its sustainability related activities and performance through its annual report as well as through the Sustainability Reports as per Global Reporting Initiative (GRI) standards.

- Managing Supply Chain for Agribusiness Operations. Mangoes are the main raw materials for the fruit processing operations of JISL. Little over 10% of the total requirement is met through the captive mango production from JISL’s own plantations in Jalgaon, which are EurepGAP certified. The balance raw material is purchased in trading markets. Other fruits such as pomegranate, berries etc. are also sourced from the open trading markets. For the onion processing operation, approximately 40-45% of the total requirement is met through contract farming, while the rest is met through purchases in open markets across India. JISL’s contract onion farming covers 4200 acres of land and 1700 contract farmers. The Company''s contract farming program includes provision of technical and financial support to farmers. Through the extension officers, company also verifies that there is no child labor in the supply chain. Company also verifies these aspects through implementation of JAINGAP.

JISL does not use pesticides under WHO hazard class Ia, Ib and II in its own farms / premises as well as in its contract farming operations. JISL is implementing an Integrated Pest Management (IPM) and Integrated Vector Management (IVM) program in its contract farming operations as also on its own farms, to reduce reliance on synthetic pesticides. For this, JISL has been implementing several farmer training and awareness activities to encourage farmers, to adopt IPM and IVM techniques, which includes printing and distribution of booklets, training programs and counseling with the help of extension officers.

To promote efficient agronomic techniques in the farming sector, JISL has undertaken several initiatives including: development and provision of high yield seeds; method and result demonstration for farmers; technical assistance on introduction of drip irrigation and watershed development; periodic meetings with farmers to discuss techniques to improve yield per hectare, dissemination of information booklets and training on good agricultural practices.

With the assistance from IFC’s advisory services during 2009-2011, JISL implemented a pilot project to develop “JAIN GAP” standard for farmers in the JISL supply chain. The JAIN GAP standard is a modified/simplified version of GLOBALGAP as a means to bring some measure of food safety and good agricultural practices (GAP) to the JISL supply base while minimizing the costs of compliance to both farmers and the Company. As a part of this Project, JAIN GAP standard was developed comprising of 74 compliance criteria of the total 256 GLOBALGAP criteria. As a part of internal capacity building, JISL’s 79 extension officers were trained on the JAIN GAP standard while internal company auditors were trained to measure farm level compliance to the standard; 4162 JAIN farmers were trained on GAP practices. As a result, 1340 farmers comply to the JAIN GAP standard, with 5573 acres of land certified under the JAIN GAP system. The Company is now scaling up the standard to the rest of its direct farm suppliers.

JISL has developed, implemented and communicated to the contract farmers, a formalized grievance redress process with the help of extension officers, for receiving and responding to contract farmers grievances.

JISL currently has a global workforce of more than 9000, of which nearly 1525 are agriculture and irrigation Scientists, engineers, technologists and technicians. In India JISL has more than 7800 regular employees and 1500 temporary workers during peak season. Jain Turkey employs a total of approx. 85 staff, of which 13-14 staff works at commercial office in Istanbul, 47 employees at the facility in Adana and the balance 25 are the sales staff spread across the country.

- Human Resource Policy, Management and Training

JISL has articulated HR policies and procedures for its operations which are consistent with respective national labor laws and IFC’s PS2 requirements. The Company has HR professionals deputed at each of its facilities, who are responsible for implementing JISL’s HR policies to employees and labor. Working conditions are communicated to employees and labor through their appointment letters, and in the orientation program.

For its India operations, JISL manages labor working conditions under the government’s Model Standing Orders. The Model Standing Orders are consistent with PS 2 provisions and are displayed in the local language at plant premises. Elaborate HR policies and procedures are in place for Jain Turkey facility as per local HR laws, which are very close to those in the EU.

In India, JISL has constituted a joint works council, comprised of both management (50%) and worker representatives (50%), to receive and redress worker concerns. The council meets every 6 months to review and address any grievances and/or issues of concern for the workers. Owing to their small number, no workers’ union is present at Jain Turkey. However, the Company does not prevent formation of such a union and respects workers’ freedom of association

JISL facilities have elaborate training calendar, which also includes EHS issues. EHS induction training is mandatory for all new employees as well as regular safety training programs for its staff and workers - including contract labor entering the company facility. Doctors/paramedical staff and ambulances are available at all of its facilities.

- Occupational Health and Safety. JISL management has initiated a concerted effort to create awareness on OHS and improve the safety standards across all its facilities – but especially in India. External safety audits are regularly conducted and action plans developed for further improvements. The Company has put in place safety committees comprised of both worker and management representatives, which meet on a quarterly basis to develop and implement corrective action plans. The Company is making efforts to ensure proper usage of PPE among all its employees – which include management directives, training sessions, close monitoring by shop floor supervisors, random checks by senior management and a fine plus departmental award system, among others. In terms of housekeeping work areas are clearly demarcated, with work instructions and safety signage displayed throughout the plants.

- Contractors. As part of its EHSMS, JISL through contractual conditions, makes it mandatory for its contractors to adhere to JISL’s EHS procedures and requirements, including those related to child and forced labor. JISL periodically monitors and internally reports the EHS performance of its contractors on issues, such as workplace safety, use of PPE and safety training of contractors’ labor.

IFC’s assessment considered the Company’s operations with regard to resources consumption (water, energy, fuel), efforts to optimize resource inputs, waste minimization and management practices as well as the storage, handling hazardous materials used in the construction and operations of facilities.

- Pollution Prevention and Resource Conservation. The main business driver of the Company, MIS, promotes water conservation (and subsequently energy conservation due to reduced water pumping requirements). In addition, the Company assembles and markets solar heating and lighting systems contributing to overall energy conservation. At its facilities in Jalgaon, JISL has implemented various energy efficiency and resource conservation measures, such as: use of solar water heating and lighting systems; generation and use of biogas from domestic sewage and process effluents; use of treated effluent in irrigation on premises. It has recently Commissioned 1.68MW waste to electricity project at its energy park which is registered for Renewable Energy Certificate (REC) as per the norms of Central Electricity Commission of India. The same project is also under validation process for carbon credits under Cleadn Development Mechanism. Water footprint assessments were conducted for two products, dehydrated onions and micro-irrigation systems (MIS), produced by Jain Irrigation Systems Ltd. (JISL) in Maharashtra, India.

As per the estimates by JISL, with drip irrigation average water saving is 3,750 cu.m per Ha while that for sprinkler irrigation is 1,900 cu.m. Associated power savings due to drip irrigation amount to 550 KW/year/ha for closely spaced crops and 460 KW/year/ha for widely spaced crops, while it is 230 KW/year/ha for sprinkler irrigation. Based on JISL’s sales for 2010-11, estimated total water savings achieved by JISL’s MIS during 2010-11 amounts to 1659 million m3, which consequently also resulted in electrical energy saving of the order of 239 million kWh.

Through several internal programs (such as afforestation, biogas, solar, vermicomposting and electric vehicles) as well as through its EcoSaver products which are used externally (drip irrigation, sprinkler systems, solar water heaters and photovoltaic systems) JISL has reported in its sustainability report that it has achieved 248000 T CO2e reductions and thus has a net positive carbon balance of nearly 6400 T CO2e.

- Energy Supply and Air Quality. Electricity is sourced from the grid for all the JISL facilities, and diesel generator sets for backup power are provided wherever required. The diesel is stored in secured tanks with adequate containment to prevent spillage of diesel at the time of loading / unloading.

For its food processing operations in Jalgaon, JISL has dual fuel (coal and biomass – primarily bagasse) fired boiler of higher capacity. This energy-efficient boiler is equipped with bag filters and the air emissions meet host country and WBG’s parameters.

In Turkey, small backup generator is provided for emergency use, only to operate the hydrant system. Oil-free transformers and compressors with variable frequency drives have also been provided at the Jain Turkey facility. Utilities areas is very well designed and developed with high safety standards.

- Refrigerants, Fugitive Emissions. The refrigerant gases in refrigeration systems and chillers are in accordance with host country regulations on ozone depleting gases. Jain Turkey has installed air cooled chillers (with R134a refrigerant, which is an alternative to ozone depleting refrigerants) for producing cooling water for the process.

JISL uses Aluminum Phosphide and Methyl Bromide for export containers fumigation purposes only. While the Company has outsourced fumigation to licensed pest control agencies, documented procedures have been developed to ensure that such agencies carry out fumigation in accordance with international good practices, to mitigate risk of occupational exposure to these fumigants. The fumigation process is carried out strictly according to the procedure in the presence of authorized senior staff from JISL.

- Water Supply and Effluent. JISL sources water from its own tube wells or from the municipal/industrial sources from the areas where they operate. At JISL’s facilities in Jalgaon, there are separate effluent treatment plants (ETPs) for plastics and food divisions and the treated wastewater is used for irrigation in JISL’s own fields nearby. The treated wastewater meets host country and IFC requirements. The capacities of the ETPs are adequate to accommodate the additional wastewater generated after the capacity expansion.

For Jain Turkey, water is provided by industrial area authority, which also monitors the quality of water. Water used for domestic purposes is treated in Company’s own reverse osmosis (RO) based water treatment system. No process wastewater is generated in Turkey facility, as the manufacturing process is entirely dry. Domestic wastewater is discharged to the sewage system of industrial area for further treatment.

- Solid and Hazardous Waste. At Jain Turkey facility, no solid waste is generated from the process, as the process rejects and scrap is ground, granulated and reused. Other domestic and office solid wastes such as paper, glass, plastic and cartons etc. are collected by the industrial area authority for further disposal. Hazardous and non-hazardous waste is separately collected. Hazardous waste disposal plans have been developed to ensure safe storage and proper disposal through licensed contractors.

For JISL’ s operations in India, Hazardous ETP sludge and other notified hazardous wastes are disposed through authorized entities in a secure landfill or for regeneration or recycling. General scrap and other non hazardous wastes are segregated and sold to recyclers.

- Carbon Footprint. As per the 2009 sustainability report published by JISL, JISL has estimated its carbon footprint of its activities in Jalgaon such as plastics park, Jain Hills (residential and office facilities), Jain Valley (food park), Anubhuti school and Wakod village. The protocol used for the estimation was internationally accepted GHG Protocol developed by World Resource Institute and World Business Council for Sustainable Development. JISL emitted nearly 180,000 tons of carbon dioxide equivalent (CO2e) comprising of direct, indirect and off-site (due to travel, transport etc.) emissions.

IFC’s assessment considered the Company’s operations with regard to the impacts of the construction and operations of facilities, including: movement of vehicles to and from construction sites, explosion risk due to on-site storage of gas and diesel, containment of dust, noise and other nuisance factors; and use of security forces.

The Company has put in place procedures to: assess potential community impacts of its projects and operations; mitigate identified risks and impacts including risk of uncontrolled release of hazardous materials from its operations or in hazardous material transport – which include for instance, process chemicals, fuels, fumigation chemicals etc. JISL has also prepared and implemented an onsite and offsite Disaster and Emergency Management Plan.

The Company employs armed security guards who are JISL’s full-time employees. JISL implements procedures for checking the past records of security personnel and the security personnel have clear objectives and permissible actions laid out founded on the respect for human rights. Further, JISL has trained its armed security personnel in avoidance of human rights violations and the use of fire arms to comply with IFC’s PS4.

On the basis of the above information, and by implementing the Environmental and Social Action Plan it is concluded that the Project has been designed and will be operated in compliance with IFC’s PS and relevant environmental, health and safety guidelines.

The Company has a procedure for external communication. As part of its EHSMS and in accordance with IFC Performance Standards, JISL has procedures for engaging with community on EHS aspects as well as those related to its core businesses.

Community can share its grievances with the Company through direct communication as well as through Company website. There is an extensive procedure and system in place to address the grievances of contract farmers from the nearby community. This includes sharing the grievances with the JISL’s extension officers followed by progressively escalating it all the way up to the Chairman in case the issue is not addressed satisfactorily.

JISL’s corporate philosophy is doing business with a social conscience. Based on this philosophy, JISL has an active corporate social responsibility (CSR) program in place, comprising various components such as rural development, education, health, Jain Sports Academy, community events and Climate change. The company publicly discloses its environment and CSR related activities through its annual report, sustainability report and through its website http://www.jains.com.

The Company will disclose this ESRS together with the status report on ESAP compliance for the prior IFC investments at its website: http://www.jains.com, as well as locally at the following addresses:

Jain Field, National Highway No. 6,At post- BambhoriTaluk- Dharangaon, District-JalgaonMaharashtra 425001, India
Tel :  +91 - 257 - 225 8011
Fax : +91 - 257 - 225 8111

Sabanci OSB, Ataturk Bulv., No:4801350 Adana, Turkey
Tel: +90 212 269 8585Fax: +90 212 269 7666

All inquiries and comments may be directed to:

Mr. Manoj Lodha, President, Finance Jain Irrigation Systems Ltd.7, Kumtha Street, Ballard Estate,Mumbai – 400 001 India
Telephone: +91 22 22610011Fax: +91 22 22621177

Broad Community Support is not applicable for this project

Current client performance is aligned with applicable Performance Standards and EHS Guideline requirements. No ESAP is required.