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
Impacts related to PS5, Land Acquisition and Involuntary Resettlement, PS7: Indigenous Peoples and PS8: Cultural Heritage were not found of direct relevance due the nature of the project: working capital finance used to purchase soybeans. Astarta’s ongoing operations will be done within the existing land plots and facilities which are located within consolidated industrial zoned areas and no conversion of natural/critical habitats will take place; there is no presence of indigenous peoples or cultural artifacts.

This is a category B project according to IFC’s Environmental and Social Sustainability Policy because IFC’s review of the project activities indicates that the associated E&S risks and impacts are few in number, generally site-specific and readily addressable through mitigation measures.

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

Astarta has completed the environmental impact assessment (EIA) studies, evaluated the E&S impacts from the soybean crushing plant in line with Ukrainian legislation and developed mitigation measures. The relevant authorities issued approvals for construction and operation of the plant which was commissioned in 2014. Also, Astarta has developed and implemented an E&S management plan which among other measures included establishment of the plant’s E&S management system, organizational chart and responsibilities, reporting to the head office, control over performance of the construction contractors, adjustment of wastewater and air emissions management and abatement, and public hearings with affected communities.



Environmental and Social Management System

The company has adopted and reviews its corporate integrated EHS policy and goals, management programs, organizational structure, procedures for internal audit, analysis, monitoring, reporting and review in line with the international standards ISO 14001, OHSAS 18001, FSSC 22000 and IFC’s PS. In 2011 the company included a commitment in the EHS Policy to adhere to the IFC’s PSs and WBG’s EHS Guidelines as applicable E&S requirements. Astarta has developed a program for implementation of the integrated EHS management system at the soybean crushing plan scheduled for certification in 2015.



The E&S responsibilities and authorities are defined and communicated throughout the headquarters, core business functions and individual facilities. In 2012 Astarta assigned a competent professional environmental manager on a corporate level. The head of the EHS and certification department controls over effectiveness of the EHS management system and E&S performance and reports directly to Astarta senior management for review and further actions for improvement, where applicable.



Occupational Health and Safety (OHS) matters are coordinated by a corporate OHS manager and plant-level managers at each individual operation.



The company’s social programs are driven by personnel designated for community engagement and communications.



The company has carried out training needs analysis and developed professional and EHS training programs to ensure up-to-date skills needed for specific work responsibilities.



Astarta and its operations including the soybean crushing plant submit annual reports on air emissions, wastewater tests and amount of generated wastes to authorities that supervise compliance with Ukrainian limits. Internal reporting about EHS issues is provided to the company management within the framework of EHS management systems implementation.



Emergency Preparedness and Response

The facilities are equipped with life and fire safety (L&FS) equipment commensurate with types of L&FS risks and hazards. Equipment includes fire extinguishers and detached fire water tanks and hydrants/hose-reels. L&FS drills are carried out by the state fire service j
ointly with the company staff. Emergency response plans are prepared at each Astarta individual operations in line with local laws. Also emergency response plans are developed for the soybean crashing in accordance with requirements of local legislation.

Human Resources Policy, Social Responsibility, Non-Discrimination and Equal Opportunity

Upon commissioning of the soybean crushing plant, Astarta created 150 permanent local jobs. The company developed and maintains a progressive human resource policy consistent with local labor laws and PS2. Discrimination in employment based on gender, race, age, ethnic and religious association, or nationality is prohibited by the policy. Astarta follows social responsibility principles being a member of United Nations Global Compact (UNGP) since 2008 and is committed to aligning its operations and strategies with principles in the areas of human rights, labor, environment and anti-corruption. Motivation schemes, performance evaluation programs, comprehensive training programs contribute to retaining of personnel in the company.



Working conditions and terms of employment

Working conditions at Astarta operations comply with national labor laws and IFC’s PS2. Ukrainian legislation prohibits employment of children below the age of 16 years; children below 18 years are not employed in dangerous, night or overtime work; forced labor is not employed. Astarta keeps written contracts with permanent and seasonal staff. Contracts with employees and corporate regulations set up comprehensive terms of employment, including hours of work, wages and benefits, leave for illness, maternity, vacation or holiday, employees’ rights for labor protection, including right /freedom for professional associations, trade unions. Astarta offers a social package to employees, including financial aid and social benefits.



Workers’ Organizations

About 80% of Astarta employees are members of trade unions; workers’ councils cooperate with management of individual operations where employees don’t belong to the trade unions. Collective agreements provide for additional terms and benefits for employees and their families.

Grievance Mechanism

Astarta has developed and implements a formal internal grievance process consistent with IFC’s PS2 which allows grievances to be presented without the risk of oppression. All employees are informed about the grievance procedure upon employment. Additionally, the corporate code of conduct actively encourages employees and managers to openly discuss and resolve internal concerns.



Occupational health and safety

OHS risks associated with operation of the soybean crushing plant were considered in project design documentation and identified within the framework of development of the integrated EHS management system. The plant is subject for workplace monitoring and workplace certification made by the licensed state agencies according to the national laws. Personnel exposed to risks exceeding national levels are provided by personal protective equipment and additional social benefits guaranteed by laws. Employees receive initial and regular specific OHS training and undergo periodic medical examination. Storage areas for hazardous and toxic materia
ls are locked in specially equipped zones with limited personnel access.



Incidents in relation to the company activities are recorded, investigated and reported; corrective actions are implemented to prevent re-occurrence. Lost time injury frequency rate is below the industry sector rate.

Water supply

Water for the soybean crushing plant is sourced from water wells within limits prescribed by the license for water use. Electricity and gas are supplied from the municipal grids. Beginning from May 2015, approximately 50% of gas used by the plant is generated by the Astarta’s biogas facility.



Air Emissions

Impacts from air emissions are mitigated by capturing dust in the aspiration system and cyclones. Solvent vapors from the oil extraction process are absorbed in a mineral oil scrubber, condensed and returned to the process.



Wastewater Treatment

Liquid effluents go through an on-site treatment facilities and to drainage fields. Wastewater discharged to the drainage fields comply with the WBG EHS Guidelines.



Solid Waste Management

Solid wastes are delivered to a local landfill; the granulated soya coat is used as animals feed and partially is burned in boiler of biogas facility. Types of wastes including hazardous wastes (luminescent lamps and chemicals from a laboratory) are segregated and removed from the site by licensed and authorized contractors for further recycling and disposal. Hexane solvent is unloaded to a specially designed station and stored in underground tanks designed for safe storage of flammable petroleum products. Permits for air emissions, wastewater and waste disposal are in place.

Community Health and Safety

The soybean crushing plant is located in the area of an abandoned tinned food manufacture in the industrial zone of the town of Globino and therefore community health and safety risks are unlikely. The nearest residential area are located 100 m from the site as prescribed by the local regulations. Monitoring data on ambient air and noise indicate compliance with the stringent Ukrainian thresholds. Response actions, should an emergency occur, are coordinated with appropriate authorities by Astarta local personnel responsible for emergency response. Evacuation plans were developed and communicated.



To ensure oil quality Astarta has been developing the food safety management system according to internationally recognized food safety standards consistent with the principles of Hazard Analysis Critical Control Points (HACCP), Food and Agriculture Organization (FAO)/World Health Organization (WHO) Codex Alimentarius, and ISO 22000.



Security Personnel

Security to Astarta’s offices and facilities is provided by a private security agency which is licensed and has staff trained according to the relevant national legal requirements. Moreover, security guards are trained to act in case of emergency and in aiding and do not carry fire arms.

In 2013 Astarta launched an international initiative for responsible production of soy through implementation of the Round Table on Responsible Soy Association (RTRS) principles aiming to sustainable use of natural resources for soybean growing. A plan for gradual implementation of RTRS principles covers measures for cultivation on areas which are not native forest, conservation of high conservation value areas, maintaining and safeguarding of biodiversity and ecosystem services, and other matters.

Communications with stakeholders are covered by the corporate standard “Management of external relation of Astarta” which includes identification of stakeholders and various ways of communications, handling and response to enquiries in line with PS1. Consultations and meetings with local authorities and small land owners to introduce Astarta plans and discuss land owner concerns are arranged by the company’s representatives. The company maintains this approach in the areas of its operations through regular community consultations and meetings. Disclosure of E&S information about new projects and developments is carried out by the company through publications in local newspapers and public consultations and as a part of the EIA process. Also EHS information available on Astarta-Visnik newspaper and local newspapers of the Agro firms. The company discloses general information on business activities, E&S performance and plans through its web sites: http://www.astartakiev.com/en/slaider-na-glavnoi/vysokaja-socialnaja-otvetstvennost.htm. “Hot line” is open for enquiries, questions and grievances astartakiev.com/en/gorjachaja-linija.htm

Since 2009 the company has been implementing a social partnership program and participating in various social projects for local communities in rural districts where Astarta operates.

Additionally, the company will disclose a summary of the IFC findings on environmental and social aspects of the Project locally in an appropriate manner.

For more information about the project and local access of documentation, please contact:

Mr. Viktor Gladky,
Chief Financial Officer,
LLC firm “Astarta-Kyiv”
Phone:380 44 593 11 05
Fax:380 44 593 11 32
Email: mailto:gladky@astarta.ua

Broad Community Support is not applicable for this project

Title	Anticipated completion Date
Develop a corrective action plan for improvement of sugar plants’ wastewater systems to prevent contamination of soil and groundwater, reduce areas occupied by sedimentation ponds and measures for remediation of areas used for wastewater treatment systems	12/30/2017
Perform studies to confirm that drug and pesticide residues in milk meet maximum residue limits (MRLs) for veterinary drugs and pesticides recommended by the World Health Organization (WHO) and Food and Agriculture Organization of the United Nations (FAO) and undertake corrective actions, if needed to comply with MRLs.	07/30/2016
Develop an Action Plan to achieve MRLs for veterinary drugs and pesticides in milk	07/30/2017