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.

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

If IFC’s investment proceeds, IFC will periodically review the the project’s ongoing compliance with the Performance Standards.

PS4 is not expected to be applicable, as Kaiima’s key impacts will be confined in growing areas.

PS5 is not expected to be applicable, as development of Kaiima’s site will not require involuntary economic or physical displacement.

PS6 is not expected to be applicable, as the process of selecting Kaiima’s sites will ensure that they will never require measures prescribed in PS6 for biodiversity conservation and sustainable management of living natural resources.

PS7 is not expected to be applicable, as Kaiima sites will always be chosen where there will be no local community members from peoples defined as indigenous under PS7.

PS8 is not expected to be applicable, as Kaiima sites will always be chosen in developed areas.

This is a category B project according to IFC’s Environmental and Social Sustainability Policy on the basis that the project will generate limited number of specific environmental and social (E&S) risks and impacts that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The project is designed to manage and reduce social and environmental risks and impacts in the Company’s operations in compliance with IFC Performance Standards, national regulations, and World Bank Group (WBG) General Environmental, Health and Safety (EHS) Guidelines. Potential E&S impacts will be addressed through the application of good international industry practice and implementation of an environmental, occupational health and safety (OHS) and social management system. Corrective measures required of the client are addressed in the attached Environmental and Social Action Plan (ESAP).

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.

Kaiima has developed a technology platform, combined with in-house breeding capabilities, for rapid non-GMO introduction of new traits into crops. The Company claims that its technology improves the productivity and tolerance of plants yielding bigger plants, higher plant yield potential and enhanced photosynthesis, among others.



IFCs financing, as part of the Company’s Series C fundraise, will allow the Company to accelerate the development of hybrid and non-hybrid seeds across more crop varieties and to begin testing and marketing these in additional geographies. The Company expects the funds to be allocated to R&D, local field testing and growing operations, and expanded marketing and distribution activities. The Company estimates that funds would be deployed up to 30% in Israel, 20% in China, and 40% in other developing countries, primarily in Central America and South Africa.



Kaiima plans to design a corporate Environmental and Social Management System (ESMS) which will be implemented in each subsidiary or joint venture operation. Kaiima will incorporate its corporate ESMS in its broader Management System for its overall operations, in order to comply with IFC Performance Standard 1 (PS1) requirements. As a condition of IFC’s investment, Kaiima will provide to IFC a specific E&S policy, operating policy requirements, standard operating procedure manuals, and other relevant documentation for its E&S program, including a monitoring/reporting framework, all to ensure compliance with national E&S requirements for each subsidiary or joint venture operation and with IFC Performance Standards, including WBG EHS General Guidelines.



Kaiima will ensure that its ESMS documentation is available in relevant local languages and communicated to all levels of its organization. Employees and contractors will be provided copies of all relevant ESMS documentation at the time of hiring and orientation. The Company will communicate the ESMS policies to all levels of its organization, and, employees and contractors will be provided copies of these policies at the time of hiring and orientation. When the ESMS design and implementation will be completed, the Companies will provide to IFC a letter from Kaiima’s senior management evidencing that the ESMS is fully operational. This will be verified by IFC through site supervision visits. Kaiima’s ESMS will provide for E&S risks and impacts in engagements with local farmers through any Kaiima subsidiary or joint venture to be identified, reviewed, and managed in compliance with applicable standards.



Kaiima will ensure that a qualified officer within each subsidiary or joint venture operation will be designated, who will be responsible for ensuring implementation of the ESMS tailored to the circumstances of the particular subsidiary or joint venture operation. Kaiima will provide IFC with a copy of its internal memorandum appointing an E&S resource person with managerial responsibilities (EHS Manager) at
each subsidiary or joint venture operation.



While local partners will be expected to take direct responsibility over issues relating to land and labor, Kaiima’s agreements with all local partners will contain E&S terms for all activities to comply with applicable standards (i.e. Performance Standards, local regulation and applicable requirements of the WBG EHS General Guidelines). Kaiima’s ESMS will include policies and procedures for monitoring compliance with those E&S terms, and to ensure that corrective action is taken whenever needed.



The Company will implement, as part of the ESMS, a process for periodic reporting and monitoring of subsidiary’ environmental and social information to senior management, to allow monitoring of progress. Regular reviews will be scheduled to monitor progress and any issues, and to feedback into developing any new targets as needed. This will ensure a proactive response and periodical realignment of Kaiima’s sustainability priorities, as needed.



If facilities are constructed in any subsidiary or joint venture operation under IFC’s investment, then Kaiima would be required to submit an E&S management plan to IFC for review and approval prior to construction, including a contractor’s OHS practice handbook.

Kaiima has about 56 direct employees. The Company is a non-discriminatory and equal opportunity employer. Kaiima has developed an initial set of human resources policies and procedures.



As per the attached ESAP, Kaiima will enhance its human resources (HR) policies and procedures, which will ensure full consistency with national labor laws, rules, and regulations and with all IFC Performance Standard 2 (PS2) requirements, both for Kaiima’s own employees and for contracted and subcontracted workers at each subsidiary or joint venture operation.



Kaiima’s enhanced HR policies and procedures will provide for facilities in all subsidiaries and joint venture operations to be supplied with appropriate fire safety equipment. They will also provide for each subsidiary and joint venture to develop and implement an emergency preparedness and response plan, which will include training of emergency teams and fire drills.



Kaiima will provide IFC a copy of its enhanced HR documentation once it is approved and signed off by Kaiima’s senior management.

Kaiima is planning for its joint venture operations and/or subsidiaries to develop field operations with contracted farmers to conduct productivity field testing of the varieties developed. These will use a wide range of inputs such as pesticides, and Kaiima will provide technical assistance in the selection and use of fertilizers and pesticides. Kaiima’s ESMS will include policies and procedures on resource efficiency and pollution prevention.



Kaiima will identify and eliminate the use of WHO Class 1a and 1b, and Class 2 chemical formulations in overall operations and report to IFC. Where applicable, the Company will favor integrated pest and disease management approaches. Kaiima will promote the use of adequate PPE based upon MSDS and/or ICSCs for the chemical materials used. The Company will also fully incorporate all pest and disease management procedures into the ESMS procedures manual. Kaiima will monitor the cholinesterase levels in workers applying pesticides and report annually in the AMR.

Kaiima recognizes the importance of community engagement. In 2012, Kaiima started collaborating with Diyur Hashachar, a community engagement project of special needs groups in Israel. Kaiima will explore further such opportunities.

Under IFC’s investment, Kaiima will develop and implement procedures for prior disclosure and community engagement for any new facility in any of its subsidiaries or joint venture operations, including procedures as needed for resolving any grievance from local community members.

Mr. Omri Rothman Moshav Sharona,
1523200, Israel mailto:omri@kaiima.com +972-49530148

An alternate address is:
Lower Galily Municipality Offices
Kadury, 14101
Israel

Broad Community Support is not applicable for this project

PS/Action Item	Due Date
PS1. Establish a Stand-Alone Environmental, Occupational Health and Social Management Unit
Kaiima will provide IFC with a copy of the internal memorandum appointing an environmental and social (E&S) resource person with managerial responsibilities (EHS Manager) for environmental, OHS and social issues. This person will report directly to Kaiima’s senior administrative manager.	Subscription/ Condition of first disbursement
PS1. Strengthen Kaiima’s Environmental and Social Management System (ESMS)
(a) Kaiima will enhance its corporate ESMS to comply with IFC Performance Standard (PS) 1 requirements to operate an ESMS. Kaiima will provide to IFC specific ESMS operating policy requirements, standard operating procedure manuals, E&S programs, and a monitoring/reporting framework for compliance with OHS and E&S national and IFC PS requirements, including WBG EHS Guidelines.	31-Jul-13
(b) Communicate ESMS policies to all levels of its organization, and, employees and contractors will be provided copies of these policies at the time of hiring and orientation.	31-Jan-14
(c) When ESMS design and implementation will be completed, the Company will provide to IFC a letter from Kaiima senior management evidencing that the ESMS is operational.	31-Dec-15
PS1. E&S Reporting and Monitoring to Senior Management
Provide IFC a copy of a management system procedure for monitoring and reporting E&S issues to senior management. This will ensure continuing EHS performance review and realignment of Kaiima’s sustainability priorities through adoption of Key Performance Indicators (KPIs) to mainstream OHS and E&S parameters, including Lost Time Incidence Frequency Rate (LTIFR - Number of injuries per million of hours worked) and Accident Free Days (Number of Days since last Lost Time Incident).	31-Oct-13
PS2. Revise Human Resources (HR) Policy
Provide IFC a copy of the approved and signed management system procedures implementing the enhanced Kaiima’s HR Policy that will ensure full compliance with national labor law, and all IFC PS2 requirements through suppliers and contractors, and will monitor its compliance.	30-Aug-13
PS3. Identify and Eliminate WHO Class 1a and 1b and Class 2 chemical formulations
(a) Kaiima will identify and eliminate the use of WHO Class 1a and 1b, and Class 2 chemical formulations in all internal and joint venture operations and report to IFC. Where applicable, Kaiima will favor integrated pest and disease management approaches. The Company will promote in all operations the use of adequate PPE based upon MSDS and/or ICSCs for the chemical materials used. Kaiima will also fully incorporate all pest and disease management procedures into the ESMS procedures manual.	31-Dec-13
(b) Kaiima will monitor the cholinesterase levels in workers applying pesticides at Kaiima overall internal and joint venture operations and report in the Annual Monitoring Report to IFC.	31-Dec-13