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
If IFC’s investment proceeds, IFC will periodically review the the project’s ongoing compliance with the Performance Standards
No potential risks and/or impacts associated with PS5 to 8 are expected in this project due to the nature of the land obtained for opening of new stores. All stores are located in established residential areas. Besides, land in Belarus is obtained only through long-term lease from the state. As a result of these transactions, the company didn’t displace people or economic activities previously. The same will apply to this project.

This proposed repeat project is being developed in accordance with national regulatory requirements by an experienced sponsor committed to good environmental and social management. With no material changes to earlier identified E&S impacts, which are all readily mitigated environmental issues under Performance Standards 1 through 4, this is a Category B project.

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.

Policy:

The Group’s operational activity is guided by applicable laws and regulations of Belarus. To maintain continuous compliance with local E&S requirements, Rubliovskiy has developed and implements a number of operational procedures in the field of waste management, hazardous materials management, food safety, occupational health and safety, and fire safety. These documents were reviewed as part of the existing investment and found to be consistent with the principles of the Performance Standards and the requirements of the WBG EHS General Guidelines.Identification of Risks and Impacts:

Land acquisition for new premises construction in Belarus is possible through long-term lease from the state only and is strictly regulated. New land plots with designated zoning are offered through bidding procedures, carried out solely by the state authorities. Local authorities are responsible for initial assessment of the land plots before offering them for bidding, including environmental and social screening. Based on the results of the screening specific requirements could be applied on future land developer (e.g. in case the land is contaminated by the past activities, etc.). Belarusian regulation prohibits development of agricultural land in use or protected forestry. Local authorities are also responsible for organizing consultations with stakeholders potentially affected by the new development. Project developers are responsible for carrying out environmental and social impact assessment (ESIA) study of the proposed development and for designing environmental management plans for the construction phase. The ESIA outcomes are reviewed for E&S compliance with Belarusian law by the state responsible agencies. Their positive opinion is required to commence the construction. The Group’s engineering arm is responsible for the design and construction of all new developments. The ESIAs for new projects are carried out by the design contractors as part of their design assignment and supervised by an environmental specialist of the Developer-group. Management Programs:

Compliance with environmental management plans for construction is contractually required in the construction contracts. These plans typically include proper stormwater management, dust control, and waste management practices. Environmental management responsibility during construction is borne by a construction contractor with oversight from the Rubliovskiy’s project manager, who is in charge of monitoring the contractor’s compliance with the contractual responsibilities and local regulations. Operational environmental, health and safety risks and impacts of Rubliovskiy’s operations are limited. To provide continuous management of the health and safety matters, the company employs the designated full time OHS, fire protection and power engineers.In addition to the regulatory requirements, the Group’s E&S Management system covers requirements to conform to appropriate IFC’s P
Ss. The latter mainly relates to labor and working conditions, where in addition to the existing trade union structure the Group has implemented alternative means for workers to express their grievances and have interests represented. Presently, the Group labor terms are consistent with PS2, with several areas of best practice that exceed IFC’s requirements.Similarly, the Group has increased emphasis on life and fire safety matters. A knowledgeable fire safety engineer is responsible for ensuring an appropriate level of life and fire safety through regular checks of the stores, training of personnel, and implementation of the improvement program agreed with IFC. Operational efficiency of installed L&FS systems is regularly checked by the third-party contractors. In addition to local regulatory requirements, the Group is successfully implementing energy efficiency program for its retail chain.

At present, the entire Group employs approximately 7,000 people, including almost 4,000 people working in the Group’s retail chain. The retail stores range in size from 183 workers to 25. All employees in the group are covered by the same human resource policies.Workers’ Organizations:

There was no evidence of discouragement of the development of worker organizations. There is a trade union activity in two legal entities of the Group only– the Belintraproduct company, which operates 60 stores, and newly acquired Nevel company, but this does not appear to be a result of any restrictions on freedom of association. Grievance Mechanism:

For the rest of its workers, the Group has implemented alternative means for workers to express grievances and have their interests represented: RTL has elaborated its procedure on receiving grievances and expanded it to all employees in the holding company. Presently the procedure envisages a formal response from management within a defined time period; and provides for a defined time and place where workers can gather to discuss labor-related matters. Workers are also eligible to select a representative to communicate and discuss labor-related matters with senior management. Thus, all labor-related requirements agreed in the ESAP under the first project have been successfully met.Occupational Health and Safety:

Health and safety conditions are strictly regulated by national legislation. In 2014, the Group had 1 lost time accident in the stores, which represents creditable OHS performance. There were 4 traffic accidents though, and the company is taking measures to minimize the risk of traffic accidents in future.

Pollution prevention:

Stores are located in or close to established residential areas and are connected to electricity, central heating (except for the 3 stores that are equipped with gas-fired boilers for water and space heating), municipal water supply and sewage utilities. If required to comply with the sewage authority’s acceptance criteria, RTL’s stores are installing fat traps to pre-treat wastewater from in-house cooking facilities before its discharge to the municipal sewage network.Solid Waste Management:

Several types of solid waste, mainly packaging materials, damaged goods and expired food products are generated in the stores. Paper, cardboard and plastic packaging materials are collected and sold for recycling. Damaged goods are collected and disposed of by an authorized waste management company. Used fluorescent lamps are collected separately and removed from stores by the licensed company. Energy efficiency:

In 2014 specific electricity consumption was 770 kWh per /m2 of trade area, which is above published global data (such as that from EnergyStar), which reports average values of electrical consumption in supermarkets of 544 kWh/m2. To reduce energy consumption, Rubliovskiy is replacing built-in cold equipment with central remote cold supply, and luminescent lamps with LED lighting. For the latter energy savings for 9 months of 2015 reached 1,100, 000 kWh. Other energy conservation measures will include installation of motion sensors for lighting control; reduced time of using light for store-signs at night; use of thermal night blinds for commercial refrigerators.



Hazardous materials:

In 2015 the company fully converted from R-22 to ozone-safe R 404A Freon.

Infrastructure and Equipment Design and Safety:

RTL’s management acknowledges Life and Fire Safety (L&FS) of store visitors and personnel as one of the key E&S priorities. RTL has developed a corporate L&FS Policy and engages a knowledgeable fire safety representative. Detection, alarm devices, fire hose reels and fire extinguishers are available in all shops. The larger supermarkets are equipped with a sprinkler system. Rubliovskiy is conducting regular recorded "check-list type" inspections of the stores, and keeps a trace of any abnormal situation such as housekeeping problems, unusual occupancy, excessive storage, inaccessible fire exits. Starting from 2014, all new stores of Rubliovskiy are designed and equipped to ensure that (i) exit doors are always accessible in case of emergency without the intervention of staff in case of an accident; and (ii) proper compartmentation is secured between public area and back of the house in case of emergency.



For existing stores, the Group will continue to take measures to ensure that all emergency exits are immediately accessible in case of emergency; and doors between public areas and back of the house are kept closed. At the moment, 60% of company’s portfolio stores (built or acquired before 2014) are equipped with exit doors that will open automatically upon fire detection, in line with good international practice. Remaining stores will be re-equipped by July 2016.



Community exposure to disease:

Currently, Rubliovskiy offers cooked food in its 38 stores, including semi-(37) and fully-cooked food (36), fresh bread (20), and confectionary (5). In 2014, the company closely worked with IFC’s advisory team to jumpstart food safety improvements and provide initial food safety training for the company’s staff, from senior management to operational line workers. A food safety department was created in 2014, and a food safety management system was established at three pilot stores to continuously control foodborne illness risks. Qualified food safety specialists are providing direct control of food safety practices in individual stores through audits, corrective action plans and training of new staff.  At the company’s level, a number of procedures were developed starting from selection of raw food suppliers to interaction with various company’s departments. In 2015, the cooperation with IFC’s advisory continues during the development of corrective action plans for each store.  Food safety management plan for 2016 contains improvement measures for specific stores, as well as establishing HACCP educational center in one of the stores.

Members of the public can express their concerns and grievances, also about RTL’s environmental and social performance, through an established grievance mechanism - the “Book of Suggestion and Complaints”, which is held in each store. These comments are studied and acted upon by RTL’s senior management. In addition, concerns and grievances can be received through the Rubliovskiy’s web-site http://www.rublevski.by

The ESIAs for new stores will be available:
http://www.rublevski.by

For further enquires about the project, please contact: mailto:v.razumov@rublevski.by+375 17 284 -67-88

Broad Community Support is not applicable for this project