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

This project involves the operation of leased facilities for the assembly of batteries, and the possible establishment of new facilities in the future. The key environmental and social issues in this project relate to the Company''s environmental and social management system, health and safety for workers, hazardous materials management, and emissions to air, water, and substrate. Upon implementation of the specific agreed measures, the project is expected to comply with IFC Performance Standards, and World Bank Group (WBG) Environmental, Health and Safety (EHS) guidelines.

Given the above, there are no major adverse environmental or social impacts expected to result from the Project, and it is possible to avoid or mitigate any limited adverse impacts that might result. Therefore, it has been classified as a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects.

PS4, PS5, PS6, PS7 and PS8 are not considered applicable given the nature of the project’s 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.

Fluidic has developed a set of environmental and social (E&S) policies and procedures for its facilities in the United States, and separate ones for the Company’s operations in Indonesia. In Indonesia, an Environmental and Social Impact Assessment was performed for Fluidic’s assembly facility. That assessment led Fluidic to improve its data tracking, water use, and management of solid waste and other emissions.



IFC’s review has focused mainly on Fluidic’s facility in Indonesia, considering that Fluidic’s other operations are in the United States and need to comply with relevant legislation in that country. In Indonesia, the Company has documented and implemented detailed policies and procedures for managing chemicals used in the assembly of its batteries, especially Hydroxide salts and Zinc Oxide. That documentation explains the risks of contact with Hydroxide salts; it prescribes safety equipment to be used at all times; and explains more generally the process of mixing the Company’s electrolyte recipe, with detailed photographic demonstrations, and measures for cleaning up where required.



Fluidic is working on an update of its E&S policies and procedures which will be completed prior to IFC’s investment. The Company’s updated E&S policies and procedures will help to differentiate Fluidic in the marketplace as a provider of environmentally and socially sustainable products. Fluidic’s updated E&S policies and procedures will include a vendor selection and approval procedure for vendors, to cover their E&S performance. They will also provide for Fluidic to maintain appropriate fire safety equipment, to check that equipment and refill fire extinguishers on a periodic basis, and to conduct fire drills on a regular basis, all in accordance with the WBG EHS Guidelines.

Fluidic’s updated E&S policies and procedures will specify that Fluidic will be responsible for compliance with applicable E&S standards by any contractors who perform core functions of Fluidic over a significant period of time. The Company will screen any such contractors to ensure that they are well-established companies with a sound track record in quality management and labor compliance. Fluidic will include E&S terms in its agreements with any such contractors to ensure that they will use documented procedures consistent with IFC Performance Standards. The terms will cover all relevant topics in E&S management. Fluidic will monitor compliance with those terms and require improvement in the event that non-compliance is identified.



For Fluidic’s overall operations, periodic reviews will be undertaken to monitor progress in E&S management and any issues identified will be addressed via new objectives/procedures as needed. E&S monitoring and reporting from all country operations will be consolidated into an annual report to be submitted to IFC. If at any time in the future the Company starts planning for new facilities under IFC’s investment, then it will d
evelop policies and procedures for siting and otherwise developing the new facilities in accordance with IFC’s requirements which will include agreement on the approach with IFC.



Fluidic’s policies and procedures will ensure that the Company manages all relevant functions covered in IFC’s PS2 through PS8 where applicable. Fluidic will always ensure that its E&S policies and procedures are made available as needed in relevant local languages and communicated to all levels of its organization. Workers employed by Fluidic and by any contractors who may perform core functions for Fluidic will be provided copies of all relevant E&S documentation at the time of hiring and orientation.

As of August 2013, Fluidic employs about 120 direct employees in Indonesia. Other country operations may be undertaken as market conditions warrant, but there is presently no specific launch date for any new operations.



Fluidic has established human resources policies and procedures for its respective operations in Indonesia and the United States. IFC’s review has focused mainly on Fluidic’s human resources in Indonesia, considering that in the United States, labor requirements align with those of PS2. The Company’s Indonesian policies and procedures cover all relevant issues necessary to comply with applicable Indonesian laws and regulations.



Fluidic’s human resources policies and procedures in Indonesia include ethical guidelines, and requirements for compliance with the U.S. Foreign Corrupt Practices Act of 1977, including appropriate accounting controls along with requirements for accurate record-keeping and book-keeping. They also include prohibition of various forms of harassment and discrimination, and provisions for health and safety.



Whenever Fluidic workers in Indonesia handle Hydroxide salts, they must wear safety goggles, latex gloves, and a chemical apron, and the mixing station must be in close proximity to an emergency eye station and shower. A spill response kit includes caustic neutralizer, absorbent dams, and personal protective equipment such as boots, gloves, and face shields. There is no record of any significant issue having yet arisen in Fluidic’s Indonesian operations.



Fluidic is working to add more formal workplace monitoring and incident recording in an ongoing update of its human resources policies and procedures in Indonesia, which will be completed prior to IFC’s investment. The Company’s updated policies and procedures will also provide for on-discrimination and equal opportunity. They will also provide written codification of existing Company practices to limit overtime hours, provide procedures for addressing worker grievances, and not to employ harmful child labor, with procedures to check ages at hiring.



Fluidic’s updated policies and procedures will also cover contracted workers and supply chain workers as defined by PS2. Fluidic will make commercially reasonable efforts to ensure that any contractors who perform core functions for Fluidic shall provide a safe and healthy work environment, including appropriate training, protective clothing and equipment, and that none are below the legal employment age. This will be done by inclusion of appropriate terms in contracts, and monitoring by Fluidic of compliance with those terms.

Fluidic’s E&S impact assessment for Indonesia identified risks in ambient air, ground water, waste water, as well as emissions associated with its two key chemical compounds, Hydroxide salts and Zinc Oxide. Fluidic periodically measures its relevant emissions associated with those risks. Results are documented in the form of certified lab findings, and demonstrate that Fluidic’s emissions are generally well below Indonesian requirements. WBG EHS Guidelines do not include limits for emissions of Hydroxide salts and Zinc Oxide. Under IFC’s investment, Fluidic will continue to measure all relevant emissions and comply with applicable local requirements and the WBG EHS Guidelines as required.



Fluidic captures, reuses, and recycles spent cells. Greenhouse gas emissions attributable to Fluidic’s operations in Indonesia are minimal, with the sum of Scope 1 and Scope 2 emissions estimated at about 1100 tonnes of CO2e per annum.



Fluidic has documented detailed procedures for responding to any spills. That documentation lists all the equipment to be maintained, and it explains measures to be taken, including for disposal of contaminated waste, with detailed photographic demonstrations. The key wastes generated by Fluidic are all materials contaminated with Hydroxide salts, due to their caustic properties.



Fluidic is working on an update of its E&S policies and procedures that will help to differentiate Fluidic in the marketplace as a provider of environmentally and socially sustainable products.



Fluidic’s updated E&S policies and procedures will cover safety training for employees of both Fluidic and any contractor who may perform core functions for Fluidic; management of ground water and waste water; and waste handling and disposal. They will provide for the installation and maintenance of all necessary equipment at its facilities to comply with applicable WBG EHS guidelines, including secondary containment structures around any and all tanks containing hazardous materials, such as electrolytes and diesel fuel.



Fluidic will ensure that its pollution and abatement activities comply with IFC Performance Standard 3 and with relevant parts of the World Bank Group’s EHS Guidelines. If any Fluidic activity is found not to comply with applicable requirements at any time, then the Company will develop a plan of prompt corrective action.

Fluidic recognizes the importance of community engagement and is committed to complying with IFC Performance Standards on disclosure and community engagement. As a condition of IFC’s investment, the Company will develop and implement procedures for prior disclosure and community engagement if any new facility is constructed, including procedures as needed for resolving any grievance from local community members.

Mr. Andrew Armstrong
(480) 966-0242
Fluidic Energy
8455 North 90th Street
Scottsdale, Arizona 85258
mailto:Contact@fluidicenergy.com
Website: fluidicenergy.com

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.