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

TianRen’s manufacturing facility is located in the center of 1,270 ha industrial park and there are no communities nearby. The expansion will be located within the Company’s existing property. The project activities consume limited amount of water and energy, there is no process wastewater discharge and greenhouse gas (“GHG”) emissions after expansion are less than 45,000 t/y CO2-equivalent. According to the toxicological data, the biopesticides manufactured are either trace or of low toxicity. The application of the biopesticides on forests and grasslands have little health impacts to poultry, mammals, and humans. Mitigation measures for the potential environmental and social impacts have been identified and are incorporated into an attached Environmental and Social Action Plan (“ESAP”).

The potential adverse E&S impacts of this project are therefore few in number, limited to the project site and may be readily mitigated. This is therefore a Category B project in accordance with IFC’s Environmental and Social Sustainability Policy.

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.

Land and Natural Environment: TianRen’s 48 ha manufacturing site is located in the center of a 1,270 ha industrial park and was established in 2002 in Ji’an City, Jiangxi Province, China. The adjacent plants to TianRen’s operations are chemical and electronics companies. The nearest community is more than 2 km away. The environmental impact assessments (“EIA”) for the expansion project confirms that there is no natural reserve area or protected species at or near the project site.



Corporate Environmental and Social Policy: TianRen has a corporate E&S policy that emphasizes the minimization of air emissions, liquid effluents, and solid waste generations through implementation of world-leading biochemical technologies and clean production processes. TianRen promotes the concept of “green pesticides”, the biopesticides, which are “environmentally harmless and residue-free”. The corporate E&S policy is covered during the new employee orientation and the induction program.



Identification of Risks and Impacts: TianRen has evaluated the potential E&S risks for the expansion project internally. For regulatory compliances, it also contracted external experts to conduct an EIA for the expansion project. The internal evaluation and the EIA predicted the cumulative impacts of the existing processes and expansion and that the project will meet all local regulatory requirements upon successful implementation of the proposed mitigation methods in the EIA and additional actions proposed by the internal review.



Corporate Environmental and Social Management and Organization: TianRen has EHS management programs for the fermentation and other processes, including EHS procedures for each operational position, air emissions and liquid effluents controls, hazardous material management, industrial solid waste management, and emergency response. TianRen’s environmental, health and safety “(EHS”) management system has been certified against ISO 14001 since 2010. Environmental management is handled by the EHS department. The EHS manager reports to the CEO assistant who is in charge of the overall plant operations. There are EHS coordinators at each manufacturing process who assist the EHS department in the daily management of operations. EHS training is included in the new employee training program and annual refresher courses are undertaken. The EHS training hours vary according to different positions. For particular positions with high EHS risks, the EHS department conducts monthly awareness training. TianRen has a robust supplier EHS auditing program, according to which 20% of suppliers are audited on-site by TianRen’s EHS department annually. TianRen only purchases from suppliers compliant with local EHS regulatory requirements.



Emergency Preparedness and Response: Fire hazard is the main operational risk at TianRen and the Company has strict management procedures to control this. There are fire and hazardous chemical sensors in high risk areas. The
firefighting equipment is maintained by each production unit, while the EHS department inspects the equipment weekly. There are two plant-wide emergency response (“ER”) drills each year for fire and chemical leaks. The fire department at the industrial park is located in proximity to the Company and thus can also provide rapid response. TianRen will contact the industry park management to propose joint ER drills and share ER information with nearby plants.



Monitoring and Review: TianRen has comprehensive EHS monitoring programs for emission/effluent parameter monitoring and EHS procedure implementation. The EHS department conducts daily performance inspections. EHS performance is reviewed during the weekly management meetings. The EHS department also prepares biannual EHS summary reports for the management team which includes current performance, proposed corrections and implementation of previous corrective plans.

Corporate Human Resources Policy and Management: TianRen has a corporate human resources (“HR”) policy that specifies the terms of employment and working conditions. These include procedures related to recruitment, probation, training, performance review, promotion, insurance, salary and compensation, resignation, lay-off and termination, vacation, other leave, and retirement. The company has HR policy training that is part of the new employee induction. As part of the expansion project, TianRen will issue the full copy of HR policy to each employee. The HR department also works as a grievance mechanism for employees. The HR manager is available to the employees for their grievances. Furthermore, the labor union is also in charge of the employee grievances. The mechanism and major grievances are documented by either HR or the labor union.



Working Conditions: All workers are on TianRen’s payroll and there is no contracting of labor. Under the employment terms that strictly follow the national labor law, workers are employed on fixed term contracts which are renewable subject to satisfactory performance and availability of work. All employees work for a standard 40-hour week, plus 5-hr overtime each week. Overtime work during holidays is compensated on the basis of 2 – 3 times of base salary. The average salary levels at TianRen are higher than the averages of the whole industrial park. All the employees also enjoy access to insurance and the pension fund as required by the labor law.



Workers’ Organization: A worker’s union with elected union leaders is set up at TianRen, as required by the All China Federation of Trade Unions (“ACFTU”). TianRen management is committed to keeping the union independent from management and allows collective bargaining.



Non-Discrimination and Equal Opportunity: The HR policy specifies non-discrimination and equal opportunity. No procedures and/or practices have been identified as discriminatory. All the hiring and promotion are merit-based. Where candidates have equal qualifications, preference of hiring is given to local residents, and females. Currently, 30% of TianRen employees are female.



Retrenchment: Retrenchment is not expected for this project. TianRen currently has 470 employees. The Company will hire approximately 100 new employees for the expansion project. An undetermined number of workers will be hired for construction through contractors.



Protecting the Work Force: TianRen complies with national law and does not hire workers below the age of 18 years. HR checks birth and school certificates during the hiring process. No forced labor practices are used by TianRen. As suggested by IFC, TianRen will include a labor audit in its annual auditing program of suppliers to ensure no child or forced labor is used in the supply of agricultural raw materials. TianRen has annual physical exams for its employees. TianRen will also conduct exit physical checks for employees working with hazardous mate
rials.



Occupational Health and Safety (OHS): TianRen has routine OHS training, including new employee training and annual refreshers. There have been no fatal or serious accidents in the Company’s operational history. Job hazard analysis is conducted and periodically reviewed for each position. TianRen management has agreed to improve its current OHS management to address the gap against the good international industry practices (“GIIP”). Thus TianRen will formalize the approach to the use of personal protective equipment based on job tasks and include within the EHS management system. As part of the project, all employees will be equipped with hard hats, working shoes, gloves, ear plugs/muffles, and full protective clothing wherever applicable. The monitored parameters for workplace air quality/noise levels meet the local regulatory requirements and GIIP. In accordance with the ESAP, TianRen will start monitoring all recordable accidents and ensure the incidences align with GIIP.

Raw Materials and Resource Efficiency: The major raw materials used at TianRen are rice husks, wheat bran and soybean powder. After the expansion, TianRen will consume approximately 7,000 MWh electricity per year; 18,000 tonnes of coal per year; and 75,000 m3 water per year. The resource consumption for this project is limited compared with the similar sales for chemical pesticides. After expansion the water and electricity efficiencies will be increased by 22% and 29%, respectively, due to larger production scale and new technology adoption.



Corporate EHS Performance Management and Compliances: TianRen has the necessary EHS performance procedures for different processes and operational positions. The EHS department manages the daily EHS performance and identifies outstanding EHS issues that need improvement. EHS department staff conduct daily inspections on EHS procedure implementation and for fire prevention purposes. In case of non-compliance, the process shift head is notified immediately to address deficiencies. Serious violations are reported to the weekly management meeting which decide on corrective actions and review implementation of previous corrective actions.



The manufacturing is based on batch processes. Limited water is used in the process except for cleaning. Wastewater is treated at the on-site wastewater treatment unit (“WWTU”). The liquid effluent quality meets both local regulatory requirements and the World Bank Group (“WBG”) EHS Guideline limits. The limited liquid effluent (120 m3/year) is used on-site for irrigation of the greenbelt and gardens. The air emissions also meet both local regulatory requirements and the WBG EHS Guidelines, with the exception of particulate matters (PM) from the product crushing and packing processes; this slightly exceed the WBG EHS Guideline limit. As part of the project TianRen will modify the emission scrubber to reduce PM emissions and ensure PM emissions meet the WBG EHS Guideline limit. TianRen will also start monitoring ambient air quality as part of the project.



Solid and Industrial Waste Management: The sanitary wastes are collected by municipal contractors for disposal. The raw material packing wastes are sent to the municipal contractors for recycling. Currently the off-specification products are disposed of in the on-site gardens. TianRen will modify the industrial waste management procedure as part of this investment. All industrial wastes, including WWTU sludge and off-specification products will be sent to a certified industrial waste management company for disposal.



Greenhouse Gases (GHG): After the expansion TianRen will generate approximately 44,300 tonnes of CO2-equivalent annually, mainly from electricity purchases and coal used in the boilers.



Pesticide Use and Management: TianRen has its own research and development department to develop bio-pesticides that are environmentally harmless and residue-free”. TianRen also has a technical supporting team to
assist major customers on how to apply the biopesticides with maximum effectiveness and minimum environmental impacts.

Community Health, Safety, and Security: There is no community near the TianRen plant site. The normal operations at TianRen have limited impacts to the communities outside of the industry park. All TianRen’s raw materials and products are transported by road tankers. There are less than 7 truck loads per week on average and road conditions are considered good and safe.



Before TianRen’s service team conducts biopesticide air application, it always works with the local public security bureau, public health bureau, and forest management office for purposes of information disclosure and consultation with local communities. To ensure public health and safety, TianRen only implements the air application after the disclosure/consultation and all the necessary approvals from various regulatory agencies. The preparation procedure is the same if the air application is conducted by TianRen customers.



Emergency Preparedness and Response: TianRen has ER plans available, and conducts routine drills for fire fighting and potential chemical leak. TianRen will contact the industry park management to propose joint ER drills and share ER information with nearby plants.



Security Personnel: The security personnel are TianRen’s own employees who conduct routine identification checks at the access gates, and security monitoring. For serious security issues, TianRen reports to the industry park police station.

Since there is no community nearby TianRen engages with the communities outside of the industry park on an ad-hoc basis. However, the TianRen administration office maintains a robust relationship with the sub-district office and reaches out to the nearby villages through the sub-district office. TianRen’s main community development goal is to support local farmer livelihoods. A public survey was conducted during the EIA preparation for the expansion project. As defined in the ESAP, TianRen will conduct a formal public consultation process to introduce the project and identify associated issues and concerns and mitigation measures if necessary.

TianRen will disclose this document in Chinese at the bulletin board outside of its main gate located at Economic Technology Development Zone of Jinggang Mountain, JiAn, Jiangxi province, China. For inquiries or concerns about the environmental and social impacts of this project please contact:

Ms. CHEN, Xiao Yan

Economic Technology Development Zone of Jinggang Mountain,
JiAn, Jiangxi province,
China 343100

Phone: +86-796-8413919
Fax: +86- 796-8402585

Company Website: http://www.jxTianRen.com/

Broad Community Support is not applicable for this project

Jiangxi TianRen (32961) Supervision Disclosure Snapshot – Version 2
Description	Anticipated Completion Date	Status	Comments	Completion Date
Conduct a formal public consultation process to identify stakeholder issues and concerns and mitigation measures if applicable.	31-Jan-2013	Completed	Completed	3/11/2013
Include a labor audit in the annual auditing program of suppliers to ensure no child or forced labor is used by suppliers of agricultural raw materials.	30-Sep-2013	Completed	Completed	8/11/2014
Formalize the approach to use of personal protective equipment (PPE) based on job tasks and include within the Environmental, Health and Safety Management System.	31-Mar-2013	Completed	Completed	5/14/2013
Monitor all recordable accidents and compile a procedure to implement corrective actions where necessary.	30-Dec-2014	Completed	Completed	5/11/2015
Modify the emission scrubber to reduce particulate matters (PM) emissions from crushing and packing process to ensure PM emission meet WBG EHS Guideline limit.	31-Dec-2013	Completed	Completed	3/21/2014
Develop and implement an ambient air quality monitoring program.	30-Sep-2013	Completed	Completed	8/11/2014
Dispose of all industrial wastes, including off-specification products, via a certified industrial waste management company for disposal.	30-Sep-2013	Completed	Completed	8/11/2014