35174 - MSC Shipmanagement Limited

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Environmental & Social Review Summary

Project Number

35174

Company Name

MSC SHIPMANAGEMENT LIMITED

Date ESRS Disclosed

Aug 6, 2014

Country

World Region

Region

Global

Last Updated Date

Feb 27, 2022

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Oct 14, 2014
Signed : Nov 24, 2014
Invested : Dec 2, 2014

Sector

Port and Harbor Operations

Industry

Infrastructure

Department

Infra-WBG Dir. Transport & Logis

Project Description

MSC, an existing IFC sponsor, is the world’s second largest container shipping company with 460 container vessels in operation at the end of June 2014. The company also owns material interests in 28 container terminals in 20 countries across 5 continents. IFC is considering a $150 million loan to MSC Cyprus - a wholly-owned MSC subsidiary responsible for the worldwide manning, technical servicing, and procurement of parts for MSC ships - to help improve the fuel efficiency of over 100 existing MSC vessels. This is expected to lead to significant GHG reductions for the MSC fleet. The necessary retrofitting works are expected to be performed in Chinese shipyards.

Overview of IFC's Scope of Review

IFC’s appraisal of this proposed investment involved review of Mediterranean Shipping Company S.A. (MSC) corporate sustainability policies; a greenhouse gas (GHG) reduction estimate for the project; Health, Safety & Environment (HSE) management certifications for the Chinese shipyards that will undertake project-related vessel renovations; and an example of an MSC HSE audit of a shipyard. Telephone conversations were also held with MSC technical and HSE staff members.

IFC currently has three projects in supervision where MSC is acting as a sponsor: (i) Asyaport in Turkey (project 32902, disclosed April 23, 2013); (ii) Brasil Terminal Portuario in Brazil (project 29505, disclosed October 15, 2010); and (iii) Togo LCT in Togo (project 29197, disclosed November 2, 2010). IFC supervision of these projects indicates that HSE performance has generally been satisfactory to date.

IFC’s appraisal considered HSE issues and plans for the project, and gaps between these plans and IFC requirements. Corrective measures intended to close these gaps within a reasonable period of time are summarized below and in the agreed Environmental and Social Action Plan (ESAP) disclosed in this review summary. Through the implementation of these management plans the project is expected to be designed and operated in accordance with IFC Performance Standards (PS) objectives.

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. 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 is a Category B project according to IFC’s Environmental & Social Review Procedure as the E&S impacts associated with the project are site-specific and can be managed using standard engineering and HSE techniques and protocols. As IFC use of proceeds will be directed to the retrofitting process, the key HSE issue associated with this proposed investment is shipyard HSE and Human Resources (HR) performance oversight for the duration of the planned works.

As the works will be occurring within existing operational shipyards, no community safety, resettlement, biodiversity, Indigenous Peoples or cultural heritage-related impacts are anticipated, hence PS 4-8 are not considered applicable.

Environmental and Social Mitigation Measures

Stakeholder Engagement

Due to the nature of this project, there are no affected communities and hence no stakeholder engagement activities required under IFC PS 1. MSC has an online external communications procedure available via its website to receive and respond to public comments or queries. The company has also published a report headed ‘MSC Sustainability Ambitions 2020’ which spells out its commitments, including quantitative targets, across a wide range of HSE, labor and ethics matters.

Broad Community Support

Environmental & Social Action Plan

MSC Green(35174) Supervision Disclosure Snapshot – Version 2
Description	Anticipated Completion Date	Status	Comments	Completion Date
MSC Cyprus will commission Health, Safety & Environment audits for each of the shipyards involved in the project against good international industry practice and monitor the implementation of key recommendations. The audits will incorporate a review of basic labor and working conditions, as per IFC PS 2 ‘management of contractors’.	31-Dec-2014	Completed	Completed	5/29/2014

**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.

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Environmental & Social Review Summary

Project Description

Overview of IFC's Scope of Review

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

Stakeholder Engagement

Broad Community Support

Environmental & Social Action Plan

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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

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Environmental & Social Action Plan

Environmental & Social Action Plan

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