There are no impacts of concern associated with the following Performance Standards: PS4: community Health, Safety and Security is not applicable to the project because the company's activities are limited to within the physical footprint of their food manufacturing facilities, and the facilities themselves do not present a risk to the neighboring communities through operations or associated actions such as security services, transportation or storage of hazardous materials etc. PS5: Land Acquisition and Involuntary Resettlement is not applicable since all facilities are owned or leased commercially through 'willing buyer-willing seller' arrangements. IFC is not aware of any disputes, outstanding legal challenges or legacy issues related to procurement of land or property; PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources is not applicable since the company’s activities do not impact biodiversity resources or negatively influence sustainable use of natural resources. The company procures ingredients and intermediate products from reputable local or foreign distributors. The company does not use or procure any products that are listed as threatened or endangered. PS7: Indigenous People – No indigenous people are known to have been in areas or affected by projects being considered for IFC financing; PS8: Cultural Heritage – The projects being considered for IFC financing are not located in areas of known historical or cultural significance.

Because IFC’s proposed corporate investment in the Company may be used to support future but, as yet, undefined projects in addition to the existing project, the principal Performance Standards (PS) to be applied to this investment are those listed above, a condition of IFC’s investment going forward will be that the company shall adopt IFC Performance Standards as part of the applicable legal and other requirements in all of its operations, and consider the issues identified in PS1 through PS8 when it is assessing any new business opportunities, acquisitions or mergers, or business models.

GBfoods Africa has an Environmental and Social Management System (ESMS) commensurate with its current scale of operations, which provides oversight of its corporate-wide practices, policies and procedures. As part of the integration plan, a combined environmental and social management system will be developed following the approach already taken by GBfoods with clearly defined lines of responsibility, monitoring and reporting functions, with Corporate ESG roles and responsibilities cascaded down into local country operations. The combined ESMS will provide consistent oversight of environmental, social and health and safety for all its operations, sub-contractors and supply chain, as well as have provisions for screening of new opportunities in expanding its business. The company will adopt IFC environmental and social Performance Standards as part of applicable requirements in its management system, and the company will either hire or designate a qualified individual in the senior management of the company to ensure compliance with group policies and procedures, IFC and regulatory requirements and to ensure consistency with good international industry practice for ESHS performance. The individual will ensure there is a program of continuous improvement that includes training, monitoring, and reporting, and equally, communicating environmental and social aspects to external interested parties relating to the project as described in ESAP Action #1.

Key stakeholders for the company are farmers, suppliers and distributors across various categories of farm products and commodities. The company procures products and ingredients from local communities, as well as from global reputable distributors on a need basis. The company does not have long term procurement contracts with the suppliers, and hence engagement with suppliers so far has been limited to food safety, quality and commercial terms only. As the company expands its operations, there is opportunity to include good international industry practices on environmental and social performance in their procurement policies and procedures. As described in the ESAP Action #1, the company will develop and implement a Supplier’s Code of Conduct as part of a registration process for its suppliers. For existing contracts, these will be added as contracts are renewed. The company will also develop and implement a supplier vetting and review process to ensure that registered suppliers comply with Company procurement policies and procedures as set forth in the Supplier's Code of Conduct, with special emphasis on elimination of labor risks such as child and forced labor, and are not engaged in prohibited activities.

The Human Resources department has responsibility for overseeing matters related to labor, working conditions and health and safety. The company provides training to all staff and sub-contractor personnel to ensure they have adequate training to perform their work. Training of staff is done on a routine basis in compliance with local workplace regulations. Supervisors monitor that standards are met and any reportable incidents are reported and follow up action taken when required. Outcomes of training, monitoring and reporting complies with applicable national regulations, and largely consistent with IFC PS1 requirements.

After integration of assets and operations under GBfoods Africa, the company will employ a total staff of approximately 750 people. The company has a human resources policy that is in compliance with local labor laws, and this policy is included in employment contracts, and addresses working conditions, terms of employment, and wages and benefits. Subcontractors, including housekeeping staff are required to comply with statutory labor requirements. GBfoods group has a formal human resources policy document and an employee handbook that includes terms of employment, rights and responsibilities of the employees, policies on grievance, non-discrimination, etc. The company is in compliance with national regulatory requirements, and has not been the subject of any violations of applicable labor laws, or labor strikes or disputes.

The company ensures that child labor or forced labor is not employed directly or by subcontractors through verification of relevant documents. Hiring practices and employment relationships recognize the principals of non-discrimination and equal opportunity, freedom of association and grievance redress. Employees are aware of their right to freedom of association and have the opportunity to collectively represent to the management any issues or grievances that they may have. All employees have the right to be part of a trade union or collectively organize, and may choose to do so at any time during their employment with the company. Wages paid are above prevailing minimum wage requirements, and working conditions are considered to be similar to others in the same business in the country of operation.

Occupational health and safety (OHS) risks to employees are similar to others in food and beverage manufacturing sector which are managed satisfactorily at the company's facilities, with areas of improvement identified for machine safety and use of personal protection equipment (PPE). Other OHS considerations include management of ergonomic impacts on labor from loading/unloading of some heavy material, physical hazards such as slip/trip/falls, electrical shocks, cuts and wounds; and chemical and biological hazards on account of material handling such as meat products, fruits and vegetables. Adequate personal protective equipment (PPE) such as shoes and gloves are provided to the workers as needed. The company has an incident reporting system where incidents are reported up to management as they happen, and follow up corrective action undertaken after review. Occupational health and safety (OHS) is managed by designated health and safety staff at each retail center. All employees in the company have to undergo a full training program at induction and subsequently on worker health and safety relevant to their job activity. Human Resources department maintains permanent records of participation to ensure compliance. Facilities are subject to annual audits by regulatory agencies to monitor compliance with labor regulations. The company has been in compliance with regulatory requirements for occupational health and safety requirements and has recorded no significant lost time incidents or fatalities in its operational history.  As agreed in ESAP Action #2, the company will review and update its existing HR policies and procedures to ensure formal documentation of its policies and procedures to ensure operational consistency with IFC Performance Standard 2 on Labor and Working Conditions.

Quality of treated wastewater discharged from company operations is compliant with WBG/IFC Guidelines for the Food and Beverage sector. As agreed in the ESAP Action #3, the company will review its energy and water usage with the objective of reduction in energy usage and fresh water consumption, encourage energy efficiency measures and water reuse, prioritizing implementation in locations where there is energy and water stress.

Solid waste from the company's facilities include both recyclable and non-recyclable materials that are sold to or disposed by licensed vendors. Limited quantities of hazardous wastes are also generated including spent machine oils and lubricants, chemicals and containers from laboratories which are also disposed as per local regulatory requirements.

The company will monitor and report on GHG emissions on an annual basis, and if emissions exceed 25,000 tons of carbon dioxide equivalents per year, the company will develop and implement measures to reduce or offset emissions.

Montse Carbo
Corporate Communication Director
GB Foods

E-Mail: mcarbo@thegbfoods.com
Web Address: http://www.thegbfoods.com