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
PS 6 – Biodiversity Conservation and Sustainable Management of Living Natural Resources
If IFC’s investment proceeds, IFC will periodically review the the project’s ongoing compliance with the Performance Standards

This proposed investment is expected to have limited environmental and social impacts which are expected to be site-specific and none is expected to be significant. Those impacts can be avoided or mitigated by adhering to recognized performance standards, procedures, guidelines and design criteria, as described in the following sections. Thus, this is a Category B project in accordance with IFC’s Environmental and Social Sustainability Policy.

Based on the findings of the appraisal visit, key EHS issues associated with this investment include the following: (i) quality, environmental and safety management systems; (ii) supply chain management, including occurrence of harmful child /forced labor, significant OHS risks and biodiversity related issues; (iii) labor transparency; (iv) occupational health and safety; (v) food safety programs; (vi) organic and packaging waste; (vii) water consumption and waste water treatment; (viii) energy efficiency and air emissions; (ix) community grievance mechanism; (x) land acquisition; (xi) certification of the agricultural practices against a voluntary agro commodity standards.

The Company owns 40 ha land in Kvareli, 108 ha in Gurjaani, the Kakheti region. The works for selecting and purchasing additional 50 ha land are in progress. 108 ha (73%) of land was purchased from the government in 2008 and 40 ha was bought from 60 farmers between 2002- 05. Although the lands visited were designated for agricultural uses, no recent agricultural activity observed. As all land acquisition process has been – and will continue to be - on a willing buyer- willing seller basis, PS5 on Land Acquisition and Involuntary Resettlement does not apply for the project.
Presence of Indigenous People (PS7) and Cultural Heritage (PS8) do not apply to the project because there are no indigenous people or cultural heritage on project site. In the event that issues anticipated by these PSs arise, Tbilvino will promptly inform IFC and screening and assessment of these issues against Performance Standards requirements will be done through the proposed environmental and social corporate and plant-level management systems (ESMS).

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.

The main facility of Tbilvino is the production plant located in Tbilisi, including administrative and processing areas. Tbilvino has a big wine cellar, which can keep up to 3 million liters of wine in Tbilisi, 3.6 million liters in Kvareli and has also small wine cellar for so called Special reserve wines aged in French oak barrels in Tbilisi. As the company is in the process of establishing its own vineyards, all the grapes are sourced from more than 1,000 farmers in the Kakheti region - approximately 150 km from Tbilisi – to the facility built in 2012.



In order to establish its 300ha vineyard, the company intends to purchase app 150 ha lands from around 15 farmers on a willing seller-willing buyer basis; for the time being, the grape of Saperavi variety is sourced from approximately 550 farmers among 1,000. Tbilvino reported that the number of the suppliers might reach 1,200-1,300 farmers even after establishment of the Company’s own vineyards as the Tbilvino is growing fast and the company will need more grapes to procure. On the other hand, the company will increase its permanent employment by 35-40 and seasonal employment by 230-250 persons to implement this Project.



Identification of Risks and Impacts. Tbilvino has not a documented procedure for identification of risks and impacts for the past land acquisition. As set forth in the ESAP, Tbilvino will prepare an environmental and social risk assessment procedure covering all potential impacts from its wine cultivating activities including impacts on biodiversity, water use plan (extraction, storage and efficiency) and social impacts of potential economic displacement in acquisition of the 50 ha vineyard. The preparation of an Environmental Impact Assessment (EIA) study for the previous project, including the construction of a new production plant was not required under Georgian legal requirements. The Company has successfully obtained EIA exemption letter from Georgian environmental authorities. The Ministry of Agriculture’s Food Safety, Veterinary and Plant Protection National Bureau performs food safety audits once a year. The Company has a valid operational license obtained from the Ministry of Economy and Sustainable Development dated January 2013 for its operations in Khaketi.



Management Programs. Tbilvino has not prepared soil management, integrated pest management and water management programs yet. As set forth in ESAP, the Company will prepare and implement these plans. Both Tbilvino and the Government of Georgia’s degustation (tasting) committees regularly perform tests to evaluate the quality of the wine and each export party also undertakes this procedure. The company’s operations are ISO 9001:2008 and ISO 22000:2005 certified by a UK Certification company and each certification is valid until February 2016. The company has conducted a hazard analysis and developed a Hazard Analysis Critical Control Point (HACCP) plan in 2012. The management system integrates quality
and food safety requirements and consists of a Management System Manual, including the policies and procedures required by ISO 22000 and ISO 9001 supported by the HACCP Plan. As per the requirements of the previous IFC investment, the company is in the process of implementation of an integrated Environment, Health and Safety (EHS) Management System elements – in line with ISO 14001 and OHSAS 18001 - into its Quality Management System. This process will be completed in a timely manner as indicated in ESAP.



Organizational Capacity and Competency. The Executive Director of Tbilvino takes ultimate responsibility for the implementation of the Management Systems and ensures timely management review of all elements for continuous improvement and effectiveness of the system. The Company will assign or hire a full-time resource person who is responsible for the implementation of the integrated EHS management system mentioned above, the preparation of annual EHS management programs, including adoption and certification of Good Agricultural Practices (GAP) standards for the vineyards, training, monitoring and reporting on Key Performance Indicators, as indicated in attached ESAP.



In order to streamline the management of EHS matters, the Company nominated the logistics manager as well as chief engineer at the processing plant and make use external EHS consultants as necessary. As agreed in the ESAP, the chief engineer and logistics manager will receive in-depth training on management of environmental, occupational health and safety (EOHS) issues in company operations. Upon these training, they will undertake EHS awareness sessions with all Tbilvino staff to ensure that these are familiar with Tbilvino’s corporate EHS policies and management system.



Emergency Preparedness and Response. The Company will prepare an emergency plan for its vineyards including the risks of chemical spillage, accidents, transportation safety and first aid requirements as indicated in ESAP.



As per ESAP of previous investment, the Company has established fire detection and alarm system at the Tbilisi facility. The facility is donated with fire extinguishers and fire hoses at appropriate places. The number of fire extinguishers was increased and a fire alarm system is installed; as well as exit signs are installed, in keeping with good industry practice. Fire extinguishers and detection systems are also available at the Kvareli site. The Company has emergency response plans and organizes drills regularly. Fire drills are conducted once a year. The company will continue performing fire drills on a regular basis and provide reports to IFC as per the ESAP.



Related employees will be trained for chemicals, hand tools and machinery use and for other assessed risks as per attached ESAP.



Monitoring and Review. The Company has been monitoring and internally reporting some of the environmental and occupational health and safety data including use of water, electricity,
natural gas, OHS data at its plants in accordance with the requirements of ISO certification. Logs are kept in special forms. The findings are reported to the upper management and assessed for further action during meetings held regularly. Effluent discharges in Khaketi and Tbilisi facilities have been monitored in accordance with the requirements of the previous investment. However, it is observed during the site appraisal that monitoring of air emissions and occupational health and safety (OHS) statistics is not as effective and hence it is agreed that the Company will improve its monitoring program to include minor and near miss accidents and air emissions as indicated in the ESAP. Going forward, as per the requirements of the integrated management system, the Company will define EHS key performance indicators (KPIs) in order to monitor on a monthly/annual basis the following EHS parameters: a) Safety – Lost Time Incidence Frequency Rate (LTIFR), Accident Free Days; b) Sustainability – Carbon (kg/ton), Water Usage (kiloliters/ton) at processing and farm operations, Energy Usage (kWh/ton), wastewater monitoring effluents, noise, air emissions parameters from boiler, use of Crop Protection Products (CPPs) and fertilizers; c) Staff – Retention/turnover and training days. (ACTION)



Reporting of the EHS key performance indicators will be done internally as per the requirements of the integrated management system and externally to the national regulatory agencies. The Company will submit an Annual Monitoring Report on Environmental and Social Performance to IFC, in accordance with the IFC requirements.



Stakeholder Engagement. The Company will identify the range of stakeholders that may be interested in their actions and consider how external communications might facilitate a dialog with all stakeholders and following that, Tbilvino will develop and implement a Stakeholder Engagement Plan that is scaled to the project risks and impacts and development stage, and be tailored to the characteristics and interests of the Affected Communities in line with PS1.



External Communications and Grievance Mechanisms. There are no immediate households or neighbors in the 5km vicinity of the vineyards and new processing plant. Taking in to account that the scale and nature of the project, communities will not be affected from the project adversely. Nevertheless, Tbilvino will prepare a community grievance mechanism in compliance with requirements of IFC’s PS1 against any concerns complaints of public of transportation of grapes, use of chemicals etc. in Kvareli and Tbilisi facilities. Tbilvino will implement and maintain a procedure for external communications that includes methods to (i) receive and register external communications from the public; (ii) screen and assess the issues raised and determine how to address them; (iii) provide, track, and document responses, if any; and (iv) adjust the management program, as appropriate.

Working Conditions and Management of Worker Relationship.



Human Resources Policies and Procedures. Tbilvino manages its human resources in accordance with internal procedures that cover staff selection and career development aspects, including recruitment process, job descriptions, induction and safety trainings and working instructions. These are consistent with Georgian Labor Law. The company has a Human Resources Policy in line with PS2 requirements, explicitly mentioning freedom of association and non-discrimination.



Working Conditions and Terms of Employment. Currently Tbilvino employs 104 people, 58 of whom are women and 26 of them are administrative staff. At employment, each staff member is introduced to the Chief Engineer and receives primary instructions on safety measures and work process. They are also provided with their labor contracts and job instructions. Specific safety instructions are available for the workers at the bottling line, diesel generator, electric cars (in the winery) and security.



The employment contract includes a one month probation period and is renewed every 6 months for unqualified workers. More than 80% of workers’ contracts are renewed continuously for the last five years. Contracts specify working hours, annual leave days, remuneration, responsibilities and termination clauses. The company also hires seasonal workers based on daily contracts during the two month harvesting period at the Tbilvino Kakheti winery. Seasonal workers are generally same people from surrounding villages and hired in August-October period. Working conditions for these seasonal workers are in line with Georgian Labor Law and PS2 requirements. Working hours are defined as 9 am to 6 pm with a lunch break and workers are entitled to 24 days of paid annual vacation leave. Social areas in Khaketi facility are very modern equipped with showers, changing rooms, cafeteria etc. Employees are paid a fixed monthly salary and fixed bonus which in this case are GEL 310 and GEL 130 (approximately 180$ and 75$, tax included) respectively. All employees are insured by private health insurance company since 2012. The minimum age of employment is 18. There is no issue related to forced labor or child labor in Tbilvino direct operations. With the establishment of the 300 ha vineyard, approximately 250 seasonal workers will be hired for harvesting season. The company will ensure that working conditions of seasonal workers will be in line with PS2 requirements as indicated in ESAP.



Workers’ Organizations. There are no trade unions involved in the company’s operations. Freedom of association is respected and explicitly mentioned in the HR policy and each employee is free to join a worker organization. The company has introduced the selection of worker representative in the absence of union, to express their concerns and worker’ grievances regarding working conditions and terms of employment. In this respect, at least one workers representati
ve in each department has been elected every year since 2011. The Company will ensure that grievance mechanism will be also open to seasonal and contractual workers as per attached ESAP.



Non-Discrimination and Equal Opportunity. The Company is an equal opportunity employer and does not make employment decisions on the basis of personal characteristics unrelated to inherent job requirements. This is clearly stated in the HR Policy.



Retrenchment. There are no current plans for retrenchment, however if it becomes unavoidable, the company will implement a retrenchment plan in accordance with PS2.



Grievance Mechanism. The Company has an open door policy and an informal employees’ grievance mechanism. Employees can directly communicate their concerns to management representatives. The Company also has suggestion boxes to allow employees submit suggestions or complaints which could be anonymous. Aside from internal grievance mechanism, external worker protection mechanisms are ensured by Georgian labor laws. As explained in ESAP, Tbilvino will establish a formal and structured grievance mechanism procedure for both direct and seasonal and contracted workers. It will be ensured by the Company that all of the workers are aware of this procedure. This procedure will include steps to be taken by workers to manifest any concerns, engage in a mediation process, contact responsible persons, and provide timely feedback in compliance with IFC’s PS2 requirements.





Protecting the Work Force. Tbilvino does not employ any person under age of 18, nor forced labor.



Occupational Health and Safety. Vineyards. The Company will perform a OHS risk assessment for its vineyards operation and prepare and implement OHS (Occupational Health and Safety) procedures, supported by annual training plan, especially against chemical, machinery and hand tools risks for vineyard workers as per attached ESAP.). The Company will provide safe and healthy work environment for seasonal workers and will address OHS issues, including identification of potential hazards to workers, particularly those that may be life-threatening; provision of preventive and protective measures, including modification, substitution, or elimination of hazardous conditions or substances; training of workers; documentation and reporting of occupational accidents, diseases, and incidents; and emergency prevention, preparedness, and response arrangements as indicated in attached ESAP.



Plants. The Company has a procedure for the preventive and occasional maintenance of all equipment and the plant’ chief engineer is responsible for the application of this procedure together with the technical control. Daily checks are performed for generators, water supply, gas supply, heating and lighting systems. The preventive maintenance program accounts for high risk pressurized gas equipment, boilers and compressors systematically. The Company performs comprehensive OHS risk assessments (with specific fo
cus on confined space) and job safety analyses for all production and bottling lines and workplaces to further reduce the risk of accidents. The most recent analysis was conducted in October 2013.



As per the OHS risk assessment, a work permission system is developed for confined spaces entry, hot works, electrical works and work at height however, not used effectively. This work permit system will be incorporated into the Integrated EHS Management System and be implemented effectively as per the attached ESAP. Carbon dioxide asphyxiation is a significant risk in wineries especially during red wine fermentation process. Tbilvino follows safety instructions during testing fermentation progress; oxygen content and toxic gas measurement devices will be provided to the relevant employees before entering fermentation tanks and other confined spaces. The Company stated that OHS statistics are kept and accidents are recorded and no incidents were reported. Going forward, as set forth in the ESAP, the company will include reports of accidents having lost days, minor incident and near-miss in the OHS monitoring plan and related inspections within the Annual Monitoring Report to IFC. The identified risks will be documented and corrective actions will be taken to reduce them to an acceptable level.



Bottling is performed at the Tbilisi facility and the capacity is 3000 bottles per hour. The system is fully automated and machine guarding is in compliance with the international standards. Workers in charge of the bottling line are also provided with the instructions on the European Union Standards that regulates the safety rules for handling such equipment.



Several analyses are performed throughout the wine production process at both internal laboratory of Tbilvino and “Wine Laboratory” (former GTZ). The state of art internal laboratory is operated in line with GOST standards (Technical standards maintained by the Euro-Asian Council for Standardization, Metrology and Certification). Material Safety Data Sheets are readily available in the laboratory; however use of personal protective equipment (PPE) is to be improved as per the attached ESAP. Wine material is analyzed for the content of alcohol, residual sugar, tartar acid, volatile acid, volatile acidity, pH, iron content, dry extract, sulfur dioxide, microbiology. Also cork and other raw materials are analyzed before using. The stability of wine and the sterility of equipment are checked before bottling. Also during bottling process and at the storage stage, random checks are conducted. Laboratory calibration certificates are available and up-to-date. The capacity of the kitchen and social areas at Tbilisi and Kvareli facilities meet the current demand. There are 149 tanks in Tbilisi wine cellar and 117 tanks in Kvareli facility that are currently cleaned manually with water hoses and cleaning agents, such as NaOH and Citric Acid.



Training of personnel has been coordinated by Human Resources (
HR) department. HR department will assess training needs for processing and vineyard workers for good manufacturing and safe agricultural practices. All employees at Kvareli and Tbilisi plants are provided with induction and technical safety training program after being hired and receive job-specific safety training twice a year. During the previous IFC investment, 10% of total employees at each facility were given first aid training, and first aid equipment was made available in readily accessible places. This is in line with Georgian Law and international practices.



Supply Chain. Before this project, the Company did not own vineyards. As such, all grapes were sourced from more than 1,000 farmers in Kakheti Region. It is estimated that the number of the suppliers might reach 1,200-1,300 farmers even after establishment of the Company’s own vineyards as the Tbilvino is growing very fast and the company will need more grapes to procure.. There is a significant deficit of red grapes (especially on Saperavi variety) since harvest 2013, due to reopening of Russian market. The Company does not establish long-term contracts with farmers; instead, the grapes are selected according to their quality and then purchased. . As such, Tbilvino does not have management control and /or leverage over its suppliers. This being said, CuSO4 (copper sulfate) is used for stopping fungus in grapes. The company will provide Georgian translations of Material Safety Data Sheets to the supplier vineyards as per the attached ESAP. The company maintains a list of approved suppliers that has been evaluated according to the history of supplier in providing the services, price claimed for the product, quality, warranty conditions, terms of cooperation and post purchasing service provision.

Georgian agriculture industry is not listed in the US Department of Labor’s list of Goods produced by Child or Forced Labor. Nevertheless, it is mentioned in the country report that many children work on farms and may use dangerous tools, carry heavy loads and work for long hours. The management team reported that there is no child labor or forced labor used in its supply chain. Tbilvino will develop and implement, as set forth in the ESAP, a management procedure for its supply chain including updating of approved list of suppliers to account for environmental and life threatening occupational health and safety concerns.

Resource Efficiency. Water requirements for vineyards is planned to be provided from irrigation channels and wells depending on availability. The Company will make its best efforts to minimize water consumption for vineyards in order to comply with sector benchmark as indicated in the attached ESAP. It is estimated that wine production requires around 4.3 liters of water per 1 liter of wine, 2 liters of which is consumed at the primary facility in Kakheti and 2.3 liters is consumed at Tbilisi production facility. These figures are in line with industry average (ref- European Union Integrated Pollution Prevention and Control-EU IPPC). As mentioned in PS1, the company performs daily monitoring of several parameters and analyzes over-consumption of these resources and identifies efficiency improvement measures. In this regard, the Company has implemented resource efficiency measures, such as installing counters, reducing the diameter of the water pipes thus reducing the water consumption, changing compressors with more energy efficient ones. The company will continue cleaner production inspections to identify opportunities to further save energy and water such as installing water spray guns for the cleaning of the tanks in wine cellars. Tbilisi facility has two sets of 630 kW transformers; one is in use and the other is stand-by. Electricity and natural gas consumptions are 687 434 kWh and 37 865 m3 respectively. There is one 630 KW transformer in Kvareli and electricity and natural gas consumptions are 59.631 kWh and 6 972 m3.



Pollution Prevention. Tbilisi plant obtains the process and domestic water from city networks and daily water consumption is around 35 m3/day. There is no wastewater treatment plant at Tbilisi facilities and effluent goes to the central municipal waste water treatment plant.



At the Kvareli winery, Tbilvino gets water from own artesian well, from 130 meters depth. Water is taken into the tanks with total capacity of 75 000 liters, then passes through the cleaning ultraviolet sterilizer, and then is pumped for using. The Company will submit the permit of the artesian well to IFC as indicated in the attached ESAP. On the territory of Kvareli winery, according to the project, there are three independent wastewater systems -domestic network, process and storm water. Domestic waste water collected in the sump is taken by special vehicles exported (under contract) as appropriate. Process drains are treated in the on-site treatment plant. Storm water discharged outside the plant separately. A small wastewater treatment plant, including balancing tank, aerators and screening has been established in Kvareli plant in accordance with the previous IFC investment requirements. Following the site appraisal, the company submitted effluent measurements to IFC (G Natadze Scientific-Research Laboratory of Sanitary, Hygiene and Ecology, Tbilisi). According to the results pH, BOD5, COD, Total Phosphate, Total Nitrogen, Total Coliform are
6.67, 1.25, 2, 0, 0.58 mg/l and 800, respectively. The results show that the measurement levels are in line with WBG EHS Guidelines. Furthermore, analyses of total suspended solids (TSS) and oil & grease are missing and will be included in the monitoring plan as per the ESAP. The company will measure pollution parameters periodically and will submit these to IFC as part of the Annual Monitoring Report.



Air emissions. Air emission parameters; NOx and dry gas excess O2 content will be monitored for four natural gas boilers located in Tbilisi, which have capacities of 85, 78, 36 and 24 KW; respectively. Capacity of gas boiler in Kvareli is 65KW. The Company will provide measurements of NOx and dry gas excess O2 content for the five natural gas burned boilers in Tbilisi and Kvareli, as per the attached ESAP.



Solid and Hazardous Waste Management. Non-hazardous wastes, such as second hand card board, polyethylene packing materials, pallets, beaten bottles are stored on site and collected and recycled by licensed company as in Tbilisi as in Kvareli. Domestic solid waste is collected and disposed by the specialized companies both in Tbilisi and Kvareli. The Company will designate an appropriate area in Kvareli facility as a waste collection area for solid and hazardous wastes, as per the attached ESAP.



Cooling agents. Non-ozone depleting gases R405 and R410 are used for cooling purposes. The Company reported that for the future refrigeration purposes, non-ozone depleting gases will continue to be used.



Pesticide Use and Management. The Company will prepare an Integrated Pest Management plan and procedures for its vineyards as per the attached ESAP. For the processing plants, pest control is implemented periodically (monthly in 6 months in cold weather and once in 3 months in hot period) through special certified (TUV) drugs via spraying, by a specialized company.

Community Health and Safety. The Company will prepare an emergency plan for its vineyards which will include chemical spillage on soil as mentioned under PS1-Emergency Management. Chemical storage and use will be in an appropriate manner to prevent any accident.



Tbilisi plant is located at an industrial area in Tbilisi, at D. Saradjishvili Avenue and owns 14,545 m2 non-agricultural land parcel with a railway line. There are no households in the vicinity of the company and facilities are surrounded by other alcoholic drink plants. No complaints have ever been received so far. Kvareli plant is located in an agricultural area and there are no households in the vicinity of 5 km. The Company has unarmed security personnel and ensures that they are regularly trained and certified as per Georgian requirements. Both - Tbilisi and Kvareli - plants are monitored via CCTV (Closed Circuit Television) systems.



Community Grievance Mechanism. Tbilvino has an active grievance mechanism for customer complaints and regularly monitors the number and root cause of complaints and under the scope of the integrated management system. The Company has traceability practices and product recall procedures and regular monitoring of the number and root cause of complaints are performed under the scope of Good Manufacturing Practices (GMP). Complaints are generally related to bottling and special reserve sediment accumulation. The Company has a well- established traceability and recall mechanism that covers each step of the chain and includes situations where the previous manufactured product is reworked into new batches. The company’s wines have won prestigious wine competitions like Decanter (UK), IWSC (UK) and Mondial de Bruxelles.



In addition, as mentioned in PS1 of this ESRS, the Company will develop and implement a community grievance mechanism procedure publicly available so as to manage any complaints regarding the operations of Tbilvino (Kvareli, Tbilisi and vineyards).

Protection and Conservation of Biodiversity.- The Company owns land plots in Kakheti region. Kakheti, in the east, has always been the most important viticulture region, supplying around 75% of grapes for wine production, producing over 68% of wine by volume, and boasting the largest area of arable land. The Company reported that all lands purchased and planned to be purchased by the company have been designated to agricultural use for many years and have been used as vineyards in the past and are vacant. There has been no conversion of natural habitat or other areas of biodiversity significance for the lands. The Company will have necessary permits –if required- to abstract ground and surface waters and wider risks to ecosystem services / the availability of water for other users will be assessed and necessary actions will be taken as indicated in the attached ESAP.



Sustainable Management of Living Natural resources. The Company will commit to achieving certification under an appropriate voluntary sustainability standard that promotes good agricultural practices and which is recognized globally, regionally or nationally. These requirements are defined in the attached ESAP.



Supply chain. Kakheti, in the east, has always been the most important viticulture region in Georgia, supplying around 75% of grapes for wine production. Presently, the grape is cultivated by thousands of small farmers as well as modern wineries, such as Tbilvino, Teliani Valley, Telavis Marani, Kindzmarauli Marani, Badagoni and Mukhrani. The lands visited were composed of alluvial clay soils and have minimal erosion risk as the land is relatively flat. The Company reported that all lands purchased and planned to be purchased have been designated to agricultural use and have been used as vineyards in the past and are vacant. Therefore, this project does not contribute to significant conversion of natural and/ or critical habitats.

Given the limited potential for adverse social and environmental impacts arising from the project, community engagement is not required by the Georgian authorities for a facility like Tbilvino’s. The publication of this ESRS and associated ESAP, in local language, constitutes the client’s community engagement related to its project’s expansion plans. The company will identify additional opportunities to further engage with the communities in the vicinity of its premises.

Mr. George Margvelashvili
President
JSC TBILVINOTel: +995 32 65 4400Fax: +995 32 65 4020
Email: mailto:gmargvelashvili@tbilvino.com.ge,
http://www.tbilvino.ge
Address: Sarajishvili Ave. #2, Tbilisi, Georgia.

Broad Community Support is not applicable for this project

Tbilvino II(35109) Supervision Disclosure Snapshot – Version 2
Description	Anticipated Completion Date	Status	Comments	Completion Date
The Company will complete integration of Environment, Health and Safety (EHS) Management System elements – in line with ISO 14001 and OHSAS 18001 - into its Quality Management System	30-Jun-2015	Completed	Completed	6/1/2016
The Company will complete integration of Environment, Health and Safety (EHS) Management System elements – in line with ISO 14001 and OHSAS 18001 - into its Quality Management System	31-Dec-2015	Completed	Completed	6/15/2016
The Company will prepare an environmental and social risk assessment procedure including the risks for biodiversity and economic displacement at the project land for purchasing lands for vineyards.	30-Jun-2014	Completed	Completed	6/15/2016
The Company will prepare an environmental and social risk assessment procedure including the risks for biodiversity and economic displacement at the project land for purchasing lands for vineyards.	30-Sep-2014	Completed	Completed	12/25/2015
Tbilvino will prepare soil management, integrated pest management and water management programs for the vineyards	31-Dec-2014	Completed	Completed	6/15/2016
The Company will prepare an emergency plan for its vineyards including the risks of chemical spillage, accidents, transportation safety and first aid requirements	30-Jun-2015	Completed	Completed	6/15/2016
The Company will assign or hire a qualified person who is responsible for implementation of Good Agricultural Practices for vineyards	31-Dec-2014	Completed	Completed	6/15/2016
EHS coordinators – Chief Engineer and Logistics Manager – will receive in-depth training for managing environmental, occupational health and safety issues in Tbilvino	31-Dec-2014	Completed	Completed	12/31/2014
HR department will assess training needs for vineyard workers for safe agricultural practices.	31-Dec-2014	Completed	Completed	6/15/2016
Related employees will be trained for chemicals, tools and machinery use and for other assessed risks.	30-Jun-2015	Completed	Completed	6/15/2016
Monitoring program will be improved so as to include OHS statistics and air emissions for Tbilisi and Khaketi facilities	31-Mar-2015	Completed	Completed	3/31/2015
Pesticide use, water use and accidents in vineyards will be monitored regularly.	31-Mar-2015	Completed	Completed	3/31/2015
Tbilvino will develop and implement a Stakeholder Engagement Plan	30-Aug-2019	In progress	Due date revised as agreed with IFC Client
Tbilvino will prepare a community grievance mechanism in compliance with requirements of IFC’s PS1 against any concerns complaints of public of transportation of grapes, use of chemicals etc. in Kvareli and Tbilisi facilities	30-Jun-2015	Completed	Completed	6/15/2016
The company will ensure that working conditions of seasonal workers are in line with PS2	31-Aug-2014	Completed	Completed	6/15/2016
The Company will perform a risk assessment for vineyards and prepare and implement OHS (Occupational Health and Safety) procedures especially against chemical, machinery and hand tools risks for vineyard workers	30-Jun-2015	Completed	Completed	6/15/2016
Safe and healthy work environment will be ensured for seasonal workers. The issues will include identification of potential hazards to workers, particularly those that may be life-threatening, provision of preventive and protective measures, including modification, substitution, or elimination of hazardous conditions or substances, training of workers, documentation and reporting of occupational accidents, diseases and incidents and emergency prevention, preparedness, and response arrangements.	31-Aug-2015	Completed	Completed	8/31/2015
Minor incidents and accidents and near misses will be included in monitoring plan in written form, according to guidance provided in the AMR format	31-Mar-2015	Completed	Completed	3/31/2015
Work permission system for “hot work”, “work at height “, “electrical works” and “confined spaces” will be used effectively and be incorporated into the Integrated Management System.	30-Sep-2014	Completed	Completed	8/31/2016
The Company will increase use of PPEs and will install aeration facilities in Tbilisi laboratory.	31-Dec-2014	Completed	Completed	12/31/2014
Fire drills will be conducted on a regular basis and reports will be submitted to IFC	31-Mar-2015	Completed	Completed	3/31/2015
Tbilvino will establish a formal and structured grievance mechanism procedure for both direct and seasonal and contracted workers. It will be ensured by the Company that all of the workers are aware of this procedure. This procedure will include steps to be taken by workers to manifest any concerns, engage in a mediation process, contact responsible persons, and provide timely feedback in compliance with IFC’s PS2 requirements.	31-Aug-2014	Completed	Completed	6/15/2016
Tbilvino will establish a formal and structured grievance mechanism procedure for both direct and seasonal and contracted workers. It will be ensured by the Company that all of the workers are aware of this procedure. This procedure will include steps to be taken by workers to manifest any concerns, engage in a mediation process, contact responsible persons, and provide timely feedback in compliance with IFC’s PS2 requirements.	31-Mar-2015	Completed	Completed	3/31/2015
The Company will update its approved list of suppliers to account for environmental and occupational health and safety, child labor or forced labor concerns.	31-Aug-2014	Completed	Completed	6/15/2016
The Company will distribute MSDSs of pesticides to farmers in local language.	31-Aug-2014	Completed	Completed	6/15/2016
The Company will make best efforts to minimize water consumption for vineyards according to international best practices	31-Mar-2015	Completed	Completed	3/31/2015
The Company will include total suspended solids (TSS) and oil&grease measurements to its performed analyses for the effluents of Khaketi plant operations, including sanitary effluent discharge. If measurements exceed IFC limits, Tbilvino will propose corrective measures, and will agree with IFC a schedule to bring into compliance with IFC guideline requirements.	31-Aug-2014	Completed	Completed	8/31/2014
The Company will submit the permit of artesian well in Khaketi.	31-Aug-2014	Completed	Completed	8/24/2014
The Company will provide measurements of NOx and dry gas excess O2 content for natural gas burned boilers in Tbilisi and Kvareli facilities	31-Mar-2015	Completed	Completed	3/31/2015
The Company will designate a waste collection area for solid and hazardous wastes in Kvareli facility	31-Aug-2014	Completed	Completed	8/4/2014
Pesticide management plan and procedures will be developed for the vineyards.	30-Sep-2014	Completed	Completed	2/1/2016
The Company will have necessary permits to abstract ground and surface waters for vineyards.	30-Jun-2015	Completed	Completed	6/1/2016
Risks to ecosystem services / the availability of water for other users will be assessed and necessary actions will be taken	30-Jun-2015	Cancelled	Changed project circumstances mandated cancellation of this task
The Company will develop procedures and management practices that will allow farming practices to be certified under a credible voluntary standard in Georgia. (Global GAP etc).	28-Apr-2020	In progress	Due date revised as agreed with IFC Client
The Company will commit to certification of all production. The standard should include environmental, social and OHS performance measures, and be incorporated in the broader Corporate ESMS	27-Dec-2019	Cancelled	Changed project circumstances mandated cancellation of this task