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 proposed direct investment will be an E&S Category B project according to IFC’s Policy on Environmental and Social Sustainability as the potential E&S risks associated with the proposed investment program are site-specific, reversible and may readily be mitigated. All of IFC’s existing and planned investments with Ṣișecam to date have been categorized B.

The most significant E&S issues in Ṣișecam''s glass making and chemicals portfolio relate to control of emissions to air and water, and labor and working conditions including occupational health and safety. The company will implement a corporate level environmental, social and occupational health and safety (ESOHS) system to ensure environmental and social (E&S) risks and impacts are effectively mitigated

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.

Environmental and Social Assessment and Management System, Policy and Identification of Risk and Impacts and Management Programs: The Ṣișecam group has a documented corporate environmental policy; however, there is no corporate level environmental management system (EMS) in place. All Turkish plants and several factories outside Turkey have certified ISO 14001 (Environmental Management) based environmental management systems, (EMS) and all Turkish plants as well as all chemical plants have OHSAS 18001 certified occupational health and safety management systems (OHSMS). There is a corporate target to certify all plants according to OHSAS 18001 by the end of 2014.



Ṣișecam plants currently manage their environmental impacts so as to be compliant with host country laws/regulations, except where IFC or other international financial institutions (IFI) are providing financing. In these cases Ṣișecam ensures compliance with IFI requirements, Identification and management of plant-specific EHS risks and impacts is achieved via implementation of each plant’s environmental and OHS management systems. The identified impacts and risks are mitigated through a plant level action plan. Sisecam has agreed to develop a corporate level EMS which will be designed to bring about material compliance with IFC Performance Standards over the life of the Bond.



The existing greenfield and proposed new investments are all located in dedicated industrial zones on sites that have been or will be acquired on a willing buyer-willing seller basis. Going forward, the Group will ensure that its process of environmental and social assessment of greenfield projects screens against issues contemplated by these Performance Standards and, if such issues are identified, mitigation measures, will be developed."



Organizational Capacity and Competency: Ṣișecam has nominated a Corporate Environmental Manager who reports to Ṣișecam’s General Manager through the President Research and Technological Development.



The Environmental Manager is responsible for representing the company to interested parties on environmental issues. Each plant has one or more environmental officer, usually an environmental engineer. The environmental officers report to the plant manager and are a part of the Environment, Technical & Quality Department (ETQ). Each main business product group (flat glass, tableware and packaging), excluding chemicals, has an Environmental, Technical Standards and Quality Manager. ETQ Managers do not report directly to the Corporate Environmental Manager.



Ṣișecam has two OHS engineers at the corporate level who report to the corporate Industrial Relations Director. In addition, each facility has its own OHS engineers. The number of plant level safety staff differs depending on the risks; however there are 30 OHS engineers in total. In addition to OHS engineers, all plants have full time and/or temporary doctors on call. In the chemical business, environmental team
s also support OHS staff. OHS staff members at plants report to Plant Industrial Relations/HR Managers and have dotted line reporting to the Group Industrial/ Human Resources (HR) Directors.



There are two directorates at the Group level dealing with labor and working conditions; (i) Human Resources Directorate (HRD); and (ii) Industrial Relations Directorate (IRD). HRD handles recruitment, performance evaluation, salary, career planning, organizational capability, personnel development and training, whereas IRD is responsible for collective bargaining, OHS and relations with employee organizations. In addition to the Group level HR organization, each business group also has its own Directors responsible for both HR and Industrial Relations, to whom HR managers report.



Emergency Preparedness and Response: Ṣișecam has a corporate level emergency planning unit which develops and reviews emergency plans including life and fire safety, business contingency, emergency response for disasters and accidental release of chemicals. Emergency drills and exercises are conducted periodically at each plant. Turkish plants performed drills with a well recognized Turkish voluntary emergency search and rescue team in 2012. Ṣișecam has a plan to conduct drills with the same team in Russia in 2013 and in other non-Turkish facilities through 2015.



Monitoring and Reviewing: The Ṣișecam Group has a system in place to monitor and review key performance indicators (KPIs), where plants provide data including air emissions results, noise levels, waste amounts, waste water quality, external grievances, fines incurred and incident rates. The data are reviewed by the Corporate Environmental and OHS departments. Plant level OHS data are reported to the Group every six months. Environmental data are used to generate reports and/or to provide analysis as and when needed. As a part of Sisecam’s Annual Report, Environmental and Occupational Health and Safety Performance is communicated to the shareholders and interested parties. Sisecam’s corporate level EMS will include periodical reporting and reviewing of environmental performance by the senior management as well.



External Communications and Grievance Mechanism and Ongoing Reporting to Affected Communities: Environmental related news, information on waste recycling, energy efficiency and greenhouse gas emissions are shared through Ṣișecam’s internet page (http://www.sisecam.com) as a part of Annual Activity Reports. The same internet page is used for interested parties to raise and register any concerns or questions.

Working Conditions and Management of Worker Relationship: The Ṣișecam Group employs approximately 19,000 people, of which some 15% are women and around 6,000 are employed outside of Turkey.



Ṣișecam has developed a corporate HR policy and procedures that have been rolled out in Turkey and at some of the Group’s international operations to date. These corporate standards will be extended to the rest of the Group’s plants, e.g., in Bulgaria and Russia, by 2015.



The Group has policies in place against discrimination on the basis of personal beliefs or other characteristics unrelated to a person’s ability to perform his/her duties, and there is no prohibition or discouragement of freedom of association. There has been a documented formal grievance system in place at the corporate level since 2009 through which any employee may raise and register concerns on ethical as well as HR or other labor issues. The system has been updated several times and there have been no major complaints through the internal grievance mechanism related to HR and/or harassment in the last three years.



In Turkey Ṣișecam’s employees are represented by five unions (Kristal Is, Cimse Is, Seluloz Is, Petrol Is, Metal Is). In Russia and Bulgaria, employees are represented by unions as well. There was a strike in Turkey in 2012, which ended when the parties reached a negotiated agreement on all issues related to working conditions.



Although Ṣișecam has been in an expansion mode for the past several years, the Group will develop retrenchment plans should any significant retrenchment become necessary in future.



Protecting the Work Force: Factories and mine facilities connected to Ṣișecam do not use child or forced labor in any of its facilities. 

Occupational Health and Safety: Ṣișecam plants have documented and certified systems for occupational health, safety, based on OHSAS 18001 requirements.



Ṣișecam has Group level incident frequency rate targets and OHS management is promoted by periodic benchmarking and recognition of best practice at plants within the Group. Although Ṣișecam’s overall incident frequency rate has improved in the recent years, there were 17 lost time incidents (LTIs) per million hours worked at the end of 2012. Ṣișecam expects to reduce this figure by implementing OHSAS 18001-based occupational health and safety management systems as well as increasing awareness through conditional safety improvements and initiating behavioral safety programs.



Workers Engaged by Third Parties: There are approximately 3,000 contract workers for security, catering services, cleaning jobs and in warehouses. The Bulgaria plant has more contractors compared to other Ṣișecam facilities as a result of flexible working arrangements in national law

Resource Efficiency: Ṣișecam has conducted energy efficiency audits on all Turkish plants and identified more than 100 improvement areas. A plan has been developed to implement energy efficiency related actions including waste heat recovery, cogeneration, installation of high efficiency motors, variables speed drives etc. It is planned to extend energy efficiency management audits to plants in other countries in 2013/2014, with implementation investments to follow.



Greenhouse Gases (GHGs): Direct emissions of greenhouse gases arise from combustion of fuel used within the manufacturing process and from calcining of limestone in both soda ash and glass manufacturing, while indirect emissions are associated with electricity purchase. Coal is used in steam boilers at SSL Bosnia, one of the Group’s oldest chemical plants, which was acquired several years ago and where efficiency upgrades are ongoing. Fuel used in the other businesses is natural gas. Annual GHG emissions for operations in Bulgaria, Turkey and Bosnia in 2012 were estimated to be around 5.75 million tonnes of CO2 equivalent. Sisecam will include more complete GHG emissions in its annual reporting to IFC.



Waste Management: In line with its existing ISO 14001 based EMS, wastes are segregated, recycled and disposed in accordance to host country environmental legislation requirements.



Hazardous Materials Management: Although the raw materials used in glass production are mostly natural and non-hazardous, there are significant hazardous chemicals in Ṣișecam’s chemical business. Hazardous materials used across the entire Group’s operations include ammonia; printing paints, cutting liquids and lubricant oils. In addition to these materials, some solvents and chemicals are used in mirror production. As a part of its EMS, each plant has hazardous materials management procedures. As a part of its Annual Monitoring Report, Ṣișecam will provide IFC information across Group operations on the amount of hazardous materials used and elimination or replacement of hazardous chemicals with non or less hazardous compounds at each site.



Emissions: The most significant point source air emissions arise from the Group’s glass furnaces. Particulate emissions range from 50 to 150 mg/Nm3, meeting host country legal requirements but in some cases exceeding WBG EHS Guideline limits for Glass Manufacturing (100 mg/Nm3). SOx emissions from gas-fired furnaces are not of concern. NOx emissions from glass furnaces generally range from 1,600 to 3,500 mg/Nm3, compliant with host country regulations but not with WBG EHS Guideline for Glass Manufacturing, with the exception of Ṣișecam’s Bulgarian plant, which has been designed to meet the much stricter host country NOx emission limit of 500 mg/Nm3 as well as a number of plants that have obtained finance from IFC other international finance institutions, in which case agreed emission limits are lower.



Ṣișecam has developed a NOx reduction design for new
end-fired regenerative furnaces estimated to reduce emissions by approximately 15%, and is planning to implement this technology at all new facilities/investments once monitoring demonstrates its efficacy. Glass furnaces have an approximate 10 years (changes depending on furnace type) renewal/upgrade period during which technical modifications cannot be readily made; hence any changes to be introduced can only be implemented gradually. However through this staged improvement program it is expected that furnace air emissions will be in material compliance with Performance Standards by the end of the Bond investment period.

There is much ongoing community engagement associated with Ṣișecam’s operations. The company publishes a newsletter every two months, including corporate information. Most of the employees come from the local area and because plants are mostly brownfield (i.e., have existed for some time), communities are generally aware of the manufacturing activities through this informal channel.
.Ṣișecam Group attaches highest importance to contribute cultural and educational activities and as well as sporting events. Ṣișecam Group provides theoretical and practical internships in its companies to high school and university students each year.
As part of its environmental, health and safety management systems, Şişecam plants have established communication procedures to openly share information with third parties and to address community concerns about the possible adverse impacts of their operations and control measures in place.Given the corporate nature of this investment and the large number of countries involved, there is no regulatory requirement of public consultation and the information will be first shared with the community through publishing this Environmental and Social Review Summary document.

This Environmental Review Summary will be available at Ṣișecam’s Head Office
For more information please contact:

Name : Mrs.Dilek Bolcan,(Corporate Environmental Manager) Address: Is Kuleleri Kule 3 34330 4. Levent Istanbul
Tel: +(90) 212 459 5595
Fax: + (90) 212 459 5495
e-mail: mailto:dbolcan@sisecam.com
http://www.sisecam.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.