32927 - QDJason Electric

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Environmental & Social Review Summary

Project Number

32927

Company Name

QINGDAO JASON ELECTRIC CO.,LTD.

Date ESRS Disclosed

Apr 9, 2013

Country

China

Region

East Asia and the Pacific

Last Updated Date

Jul 28, 2017

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : May 21, 2013
Signed : May 31, 2013
Invested : Jul 31, 2013

Sector

Computer & Electronic Products(Computers & Peripherals, Communications Equip., Elec. Watches & Similar Elec. Products. Integrated Circuits & the application of Miniturization Technologies characterize this sector.)

Industry

Health, Education and Life Sciences

Department

Equity Portfolio Management

Project Description

QD Jason is a developer and manufacturer of technology and application products for deep ultraviolet (DUV) LEDs. The Company is currently headquartered and has manufacturing facilities in the Laoshan District of Qingdao City, Shandong Province. QD Jason focuses on emitters outside the visible spectrum, the deep ultra violet spectrum. At these wavelengths, the ultraviolet LED is especially suitable for disrupting the replication of DNA and other reproductive molecules in harmful bacteria, which have significant potential in applications such as air and water purification, medical equipment sterilization. The total project cost is approximately $10 million and consists of capital expenditures related to expansion, marketing and sales, and continued R&D. IFC is considering an equity investment of USD 6 million.

Overview of IFC's Scope of Review

The scope of review of Qingdao Jason Electric Co (“QD Jason” or “the Company”) compliance with IFC’s Performance Standards and local environmental, social and occupational health and safety standards comprised; (1) assessment of effectiveness of the Company’s environmental and social management system and; (2) its ability to ensure and monitor compliance with regulatory requirements and IFC’s Performance Standards in its operations. The review relied on documents and reports made available by QD Jason, and interviews conducted by IFC staff during their site visits to the Company's corporate offices and system integration/ manufacturing facilities in Qingdao, China. During the visit IFC staff conducted interviews with key management personnel and various support staff.

E & S Project Categorization and Applicable Standard

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.

PS 4: Community Health, Safety and Security - No evidence of potential for adverse impact to community health safety or security was observed or has been reported on the Company's operations.

PS 5: Land Acquisition and Involuntary Resettlement - Not applicable since the Company’s corporate offices and manufacturing facility is located in a rented/leased property in a commercial use building.

PS 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources - There are no negative impacts to biodiversity or conservation from the Company’s operations.

PS 7: Indigenous Peoples - No Indigenous People are known to have been in the area or affected by the project.

PS 8: Cultural Heritage - No evidence of the presence or impact to issues associated with Cultural Heritage.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because it may create a limited number of specific environmental and social impacts that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines, or design criteria. E&S issues associated with the Company’s current manufacturing/assembly operations are similar to those for fabrication of small microelectronics, confined to a small physical footprint, and presents limited material hazards to workers or environment. QD Jason's management team is actively engaged in the Company's day to day operations and is keen to ensure that the Company continues its operations in compliance with local regulatory requirements as well as in consistency with IFC Performance Standards and applicable environmental, health and safety guidelines.

Environmental and Social Mitigation Measures

QD Jason does not yet have a formal management system, however the Company’s management program includes operational policies and procedures that are implemented by supervisors who report to management on a regular basis. Policies and procedures comply with applicable local regulatory requirements including those for human resources and labor, occupational health and safety, and environmental compliance. The Company also complies with numerous client certification systems that are required by the Company's global clients. The management system includes effective training, documentation of monitoring results, mechanisms for correcting problems and investigating accidents or non compliance, and ensuring that appropriate adjustments to procedures are made to prevent reoccurrence. The Company’s training, monitoring and reporting framework, and its implementation complies with applicable national regulations, and is consistent with IFC Performance Standard 1 requirements.

Human resources are managed at the corporate level which has oversight of facilities and operations. Training of staff is done on a routine basis in compliance with local workplace regulations. The department of human resources is responsible to ensure that all employees are adequately trained to perform their work safely. Consistent with regulatory requirements, QD Jason has emergency prevention and control plans which specifies responsibilities, ensures appropriate training is provided, response equipment and materials are in place, and details a set of procedures to be followed to minimize the harm of any potential accident. Supervisors monitor that standards are met and any reportable incidents are recorded, and follow up action taken when required. The training, monitoring and reporting framework is documented and consistent with Chinese requirements, and good international industry practice.

As the Company continues to grow rapidly, QD Jason will develop and implement an integrated management system which includes environmental and social performance management, and consistent with internationally acceptable management frameworks, such as ISO for example. Additionally, the Company will either hire or designate an individual on the board of the Company to ensure compliance, including its subcontractors, with group policies, procedures and regulatory requirements, and ensure consistency with good international industry practice for ESHS performance, including IFC Performance Standards and applicable World Bank Group (WBG) EHS Guidelines.

QD Jason currently employs 78 people as full time staff. Sub contractors are hired on an as needed basis, with the exception of service providers for janitorial, food and security services who have longer term contracts. Labor practices and working conditions, including occupational health and safety, comply with local regulatory requirements and are largely consistent with IFC policies and applicable sector guidelines.

QD Jason has a Human Resources policy that is consistent with local and national regulatory requirements. The policy is included in employment contracts, and addresses working conditions, terms of employment, and wages and benefits. This information is provided in the form of an employee handbook at the time of induction. Employment relationships recognize the principals of non-discrimination and equal opportunity. Although the work force at QD Jason is not unionized, employees have the right to freedom of association and have the opportunity to represent to the management any issues or grievances that they may have. The minimum employment age at QD Jason is 17 years which complies with regulatory requirements. QD Jason ensures that child labor or forced labor is not employed directly or by subcontractors through verification of relevant documents. Subcontractors are expected to comply with all local labor requirements specified in contractual arrangements. For its manufacturing operations, employees typically work on 8-hour shifts, and can work up to seven days a week with adequate provision for leave and rest. Wages are paid on a monthly basis and calculated based on hours worked, inclusive of any overtime.

Occupational health and safety at QD Jason facilities are managed by designated health and safety staff. Facilities are audited twice a year by regulatory agencies to monitor compliance with labor regulations. There is a plan for accident prevention and worker safety consistent with local regulatory requirements. All employees in the Company have to undergo a full training program at induction and subsequently worker health and safety relevant to their job activity. QD Jason also regularly monitors its workplace air quality against relevant internationally used standards for exposure to industrial chemicals and vapor. Workplace air quality and noise is monitored annually and is within acceptable limits. Facilities and associated infrastructure are largely well maintained. Fire drills and emergency procedures drills are routinely held at the manufacturing facilities. As part of continual improvement, the Company will review its emergency and safety signage, handling of hazardous materials including corrosives and gases, and effectiveness of internal training and emergency response. The OHS performance of QD Jason is in compliance with regulatory requirements, and consistent with requirements of IFC PS2 on Labor and Working Conditions.

Stakeholder Engagement

No local communities have been significantly affected by QD Jason’s ongoing operations. The Company has not been the subject of any public complaints or litigation related to its environmental or social performance. In China, dialogue and communication with affected communities including public consultation and disclosure of environmental and social impact assessment occurs through procedures established by Chinese government regulations. As a result, no formal information dissemination activities have been undertaken by the Company so far. Notwithstanding, as part of its environmental and social management program, QD Jason will establish methods for communicating environmental and social aspects to external interested parties and maintain procedures for receiving, documenting and responding to concerns from any external interested parties relating to the project. Specific procedures will be developed to incorporate community engagement, including clear procedure on disclosure and consultation with potentially affected communities.

For more information see the company’s website at http://www.qdjason.com/ or contact:

Guohua Zhang
Qingdao Jason Electric Co. Ltd
5# Building No.177, Zhuzhou Road, Laoshan District
Qingdao, China
Tel: +86-532-8870-5925

A Chinese-language copy of the Environmental and Social Review Summary (ESRS) will be posted on the Company’s web site (http://www.qdjason.com/) and made available at the main entrance of the facility listed below. An announcement informing the public of its availability for review and comment will also be placed in a local newspaper.

Qingdao Jason Electric Co. Ltd
5# Building No.177, Zhuzhou Road, Laoshan District
Qingdao, China
Tel: +86-532-8870-5925

Broad Community Support

Environmental & Social Action Plan

**Information on IFC's Policy and Performance Standards on Environmental and Social Sustainability can be found at www.ifc.org/sustainability

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Environmental and Social Review Summary (ESRS) is prepared by IFC to disclose its findings and recommendations related to environmental and social considerations regarding potential investments. Its purpose is to enhance the transparency of IFC's activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this ESRS is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein.
It is distributed in advance of IFC Board of Directors' consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following ESRS is disclosed in accordance with IFC's Access to Information Policy (AIP).

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Projects

Environmental & Social Review Summary

Project Description

Overview of IFC's Scope of Review

E & S Project Categorization and Applicable Standard

Identified Applicable Performance Standards

Environmental and Social Categorization and Rationale

Environmental and Social Mitigation Measures

Environmental and Social Mitigation Measures

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

Stakeholder Engagement

Stakeholder Engagement

Local Access of Project Documentation

Broad Community Support

IFC's Determination of BCS

Environmental & Social Action Plan

Environmental & Social Action Plan

Press-Release

Related SII

Similar Projects

Information on E&S Complaints and Grievance Mechanisms

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