The company is essentially a  B2B technology platform  for packaging materials. The main operations therefore are related to selling of packaging materials (manufactured by its on-boarded sellers) through its platform. The packaging materials are either directly shipped from the sellers to the client (through logistic service providers) or temporarily stored in warehouse spaces (parts of storage within third party warehouses) leased by the company. The company does not have any manufacturing facility of its own or other physical assets. 

Based on the above, no significant environmental impacts are expected from company’s operations, therefore, PS3 (Resource Efficiency and Pollution Prevention) is not applicable. Similarly, no impacts as envisaged under PS4 (Community, Health, Safety and Security). Considering the operations and activities proposed under the project, the kind of impacts envisaged under PS5 (Land Acquisition and Involuntary Resettlement), PS6 (Biodiversity Conservation and Sustainable Management of Living Natural Resources), PS7 (Indigenous Peoples) and PS8 (Cultural Heritage) are not applicable.

This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.  

Key environmental and social (E&S) risks and issues associated with the project include company’s capacity and systems to manage its social, environmental, health and safety aspects of its operations in compliance with legal requirements as well as IFC Performance Standards and World Bank Group (WBG) EHS guidelines; assurance of fair, safe and healthy working conditions for its workforce (both employees and third party workers); and ensuring compliance with IFC PSs requirements in the supply chain.

Identification of E&S Risks and Impacts:  Considering the company operations, E&S risks are limited to HR related impacts and supply chain risks. No environmental and social impact assessment (ESIA) is needed, however, the following sub-sections describe company’s policies and procedures (existing and proposed) to identify and manage identified risks and impacts.  

Policy: The company has a HR manual (discussed in PS2 below) which explains its HR policies. Currently the company does not have any supply chain policy requirements and areas of improvements are discussed under PS2.

Organizational Capacity: The company has a HR team headed by People Success Manager (reporting to the COO). The Director – Client Growth and their team is responsible for identifying, onboarding and managing manufacturers. The transport of materials is managed by the Director – Supply Chain and team.

Emergency Preparedness and Response:  The company’s office is located in a leased space in the commercial building which has the required fire safety systems (including fire hydrant and fire extinguishers). The emergency response is managed by the building management. 

Monitoring & Reporting: Regular reports are submitted to the relevant authorities on HR issues as per applicable legal requirements. The monitoring of manufacturers need to improve as per requirements of PS2 on supply chain as discussed later in this summary.

The company has a total workforce of 106 employees. Only a few (about 11) third party employees are involved in company’s operations for dispatch, delivery and quality control. 

HR policy, working conditions and terms of employment: The company has documented HR policies which mainly cover operational issues like appointment, performance appraisal, exit, timekeeping, payroll, information technology policies, leave policy, employee benefits, travel and expenses policy, disciplinary and grievance procedures. The policies are communicated during the induction process. All employees have a written appointment letter from the company explaining the working conditions and terms of employment. 

As per the ESAP, the company will align and document its policies in line with the PS2 requirements and document specific policies on various aspects covered under PS2 including non-discrimination, freedom of association, prevention of child and forced labor and retrenchment. The new policies will also be communicated to the employees. 

Non-discrimination: The company considers itself as an equal opportunity employer, however, as per the ESAP, the company will document a specific policy on non-discrimination.

Freedom of association and grievance mechanism: Currently there is no staff union at the company. However, the company does not restrict formation of employee unions and will document a policy as part of the HR manual on the same. 

The company has provisions to raise grievances through their supervision or HR department. The procedure provides timing of the resolution of grievances and escalation levels. The procedure allows to submit grievances at a higher level to maintain confidentiality. 

The company has a significant number of women staff members. Therefore, in line with the applicable regulatory requirements, the company has formulated and implemented a prevention of sexual harassment policy and constitute a specific committee to handle any sexual harassment related complaints.

Prevention of child labor and forced and bonded labor: Considering the operations and nature of the workforce, no child or forced and bonded labor is expected at the company’s operations. However, the company will include a specific policy in its HR manual. 

Occupational Health and Safety (OHS): Considering the type of operations, there are no significant OHS risks or impacts. Required fire safety systems are noted to be provided at the office. 

Third party workers: The company employs its contract employees through two different agencies. All these employees sign a written contract with the agency which explains various terms and conditions of their employment. The HR department of the company review required documentation to ensure that the wages, working hours and benefits are in line with the statutory requirements. 

Supply chain: As mentioned above, the company has about 2500 registered manufacturers, out of which the company has a service agreement with about 600. The active manufacturers are less as only some of the registered manufacturers regularly get orders. Currently the company conducts a physical inspection of the manufacturers before signing the service agreement and also conducts a quality inspection before first order/new product, however, these inspections do not focus on any E&S aspects. The company does not have any documented E&S requirements for its manufacturers.  

As per the requirements of PS2 and ESAP, the company will document and include E&S requirements (basic legal compliance, no child labor, no forced and bonded labor and no significant safety hazards) in the service agreement with the suppliers. Also, the company will include these requirements in the checklist for pre-screening and based on the risk and leverage/control, undertake ongoing monitoring of its suppliers for their compliance with respect to these requirements.

Transport of the packaging materials is mostly just-in-time from the manufacturer to the client. In the remaining cases, the materials are stored temporarily in the warehouse positions leased by the company and then transported to the client. The transport is mostly provided by reputed courier companies (like Fedex and Bluedart) or third party logistic service providers.

In terms of E&S disclosure, the publication of the ESRS and ESAP will be the company’s first disclosure of E&S information.                                                   

Considering the corporate nature of this investment, Bizongo will disclose this ESRS and the ESAP at the following address:

3 ^rd  floor, E-Wing, Tex Centre

Chandivali Farm Road 

Andheri(E), Mumbai, India.

Phone: +91 22 3809 4612

Any queries and/or comments about the project may be directed to:

Mr. Aniket Deb 

3 ^rd  floor, E-Wing, Tex Centre

Chandivali Farm Road 

Andheri(E), Mumbai, India.

Phone: +91 22 3809 4612

Email:   aniket@bizongo.in