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
If IFC’s investment proceeds, IFC will periodically review the the project’s ongoing compliance with the Performance Standards
IFC’s environmental and social due diligence indicates that the principal Performance Standards (PSs) to be applied to this investment are:

PS1: Social and Environmental Assessment and Management Systems and
PS2: Labor and Working Conditions.

PS3: Pollution Prevention and Abatement are not significant issues in this project, and are managed by measures under PS1.
PS4: Community health, safety and security issues are not expected to arise in this project.
PS5: Involuntary resettlement issues are not expected to arise in this project, as no site will be developed requiring resettlement.
PS6: Biodiversity conservation and natural habitat issues are not expected to arise in this project, as no site will be developed if it involves biodiversity conservation or natural habitat issues.
PS7: Indigenous peoples issues are not expected to arise in this project, as no site will be developed if it involves indigenous people issues.
PS8: Cultural heritage issues are not expected to arise in this project, as no site will be developed if it involves cultural heritage issues.

Nevertheless, a condition of IFC’s investment will be that Organica’s operations shall consider all relevant social and environmental risks and impacts, including issues covered in all IFC PSs.

The project involves research, development, design, operations, and management by Organica of wastewater treatment products and services. No major adverse environmental or social impacts are expected to result from the project, and it will be possible to avoid or mitigate any limited adverse impacts that might result. As a result, it has been classified as a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects.

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 key environmental and social (E&S) issues in this project are compliance with national, local, and IFC E&S standards on construction; management of waste and hazardous materials; fair, safe and healthy working conditions; and supply chain management. Upon implementation of the specific agreed measures, the project is expected to comply with IFC Performance Standards and IFC environmental, health and safety (EHS) guidelines. Following is a summary of the Company’s commitment to environmental and social management, and IFC’s requirements.

Organica has developed and implemented a set of safety policies and procedures. Under IFC’s investment, the Company will develop and implement an improved version of those policies and procedures, consistent with applicable IFC Performance Standards and IFC EHS Guidelines, for the purposes of managing Organica’s own employees as well as its key suppliers, vendors, and contractors.

Organica will screen potential concessions for significant E&S risks and impacts, and will generally avoid bidding on a concession where significant E&S risks or impacts may arise and could not be easily mitigated. Organica will normally not manage construction or rehabilitation of wastewater treatment facilities, but will do so on occasion.

Organica’s corporate E&S policies and procedures will ensure that at least a minimum – yet robust – approach to E&S performance is achieved across the Company’s operations, and will ensure that all E&S risks and impacts are appropriately managed. For each country in which Organica operates, it will tailor its corporate E&S policies and procedures to be consistent with local E&S standards. Organica will plan and implement annual training programs consistent with its E&S policies, and with E&S risks across all its operations.

Organica’s E&S policies and procedures will cover issues including health and safety management and training for Organica’s employees when working both in Organica’s own offices and elsewhere; hazardous materials management; waste management; emergency response planning and preparedness; E&S management of suppliers, vendors, and contractors; public disclosure and local community engagement regarding new or rehabilitated facilities, as needed; and E&S monitoring and reporting.

Organica will appoint at least one person at its headquarters and at least one person in each country in which it has substantial operations to be an environmental coordinator, who will be responsible for developing and/or implementing the Company’s E&S policies and procedures. The environmental coordinator at Organica’s headquarters will be responsible for the Company’s monitoring and reporting structure for environmental and social management.

For each wastewater treatment facility for which Organica manages construction or rehabilitation, responsibility for E&S management will be assigned at the operational level to a Company employee who will serve as the E&S coordinator, reporting to the Organica manager responsible for the overall concession.

The stepwise environmental licensing process applicable to wastewater treatment facilities may entail feasibility studies for preliminary licenses, followed by more detailed E&S impact assessments to obtain construction and operating licenses. The E&S coordinator will ensure that any required E&S feasibility study or E&S impact assessment is performed as appropriate to comply with applicable local standards and IFC Performance Standards. Construction or rehabilitation will begin only after any requisite environmental permits have been obtained.

Organica will be responsible for compliance with applicable E&S standards by its key suppliers, vendors, and contractors. It will screen potential key suppliers, vendors, and contractors to ensure that they are well-established companies with solid track records in quality management and labor compliance. Organica will ensure that those selected will use documented procedures consistent with IFC and local standards.

Organica will include E&S terms in its agreements with key contractors, vendors, and suppliers, particularly relating to construction or rehabilitation of wastewater treatment facilities. It will tailor those terms to the circumstances of each country in which it operates, and to be consistent with IFC and local E&S standards. The terms will cover such topics as health and safety training; health and safety management; hazardous materials management; waste management; and avoidance of forced labor or harmful child labor. Organica will monitor compliance with those terms and require improvement in the event that non-compliance is identified.

Under IFC’s investment, Organica will develop procedures for hazardous materials management and waste management that will ensure compliance with applicable limits under IFC’s EHS Guideline. Those procedures will cover inter alia chemicals management at Organica headquarters, chemicals management at each Organica wastewater treatment facility, management of sludge, and management of visual impacts, noise, and odors. They will ensure that appropriate emergency prevention and control equipment are installed at all concessions where Organica manages construction or rehabilitation, and that drinking water from all those concessions can meet applicable host country standards.

Organica’s policies and procedures will ensure that the Company manages all relevant functions covered in IFC’s PS2 through PS8. Periodic reviews will be scheduled to monitor progress and any issues, and to feed back into developing any new objectives as needed. E&S monitoring and reporting from all country operations will be consolidated into an annual report to IFC.

The Company has 45 regular full time employees at its headquarters, and 7 elsewhere. It expects to employ 15 indirect (contracted) workers in 2013 and 20 in 2014.

Organica has developed and implemented a set of HR policies and procedures. These include policies and procedures to promote the fair treatment, non-discrimination and equal opportunity of employees. The Company ensures that its employees are provided with appropriate personal protective equipment and health and safety training for the type of work in which they are engaged.

Under IFC’s investment, Organica will develop and implement an improved version of those policies and procedures, with a version tailored for each country in which it has substantial operations. The revised versions will incorporate inter alia policies and procedures to ensure that employees of key contractors, vendor, and suppliers are managed in compliance with IFC Performance Standards, and procedures on how any employee grievances will be managed.

The Company pays wages that are highly competitive, and will continue to do so. When new employees will be hired, they will be trained in Organica’s E&S policies and procedures. Policies and procedures for worker health and safety will be incorporated in Organica’s E&S management system as described in the section above on PS1.

Organica recognizes the importance of community engagement. Organica’s community engagement at each individual wastewater treatment facility where it provides products and/or services will be commensurate with its involvement at the facility.

Local community members potentially affected by Organica’s operations are normally customers of Organica’s clients, who perform their own community engagement. The Company will pay particular attention to community engagement at concessions where Organica manages construction or rehabilitation, where the Company will assume responsibility for ensuring that at least one sign is posted at the construction/rehabilitation site at least one week prior to the start of construction/rehabilitation, with contact information in case local community members have any concern.

Organica will ensure that a Company employee is available on an ongoing basis to respond to concerns on a timely basis. At any site where a substantial number of local community members express concerns, Organica will endeavor to organize a meeting to address those concerns, on a timely basis.

As a condition of IFC’s investment, the Company will develop written procedures for prior disclosure and community engagement for any facility for which it is managing construction or rehabilitation, including procedures as needed for resolving any grievance from local community members. Organica is committed to complying with IFC Performance Standards on disclosure and community engagement.

Mr. Ari Raivetz, CEO
Organica Water
Tűzoltó u. 59.1094 BudapestHungary
mailto:Ari.raivetz@organicawater.com
+36 (1) 455 8060

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.