Performance Standard 3 is not triggered because there are no impacts associated with resource efficiency or pollution on either program and therefore with Performance Standard 3 on Resources Efficiency and Pollution Prevention. The infrastructure improvements will not significantly impact the use of resources, and greenhouse gas (“GHG”) emissions from the schools will be negligible. No issues or risks related to Performance Standard 5 on Land Acquisition and Involuntary Resettlement are expected for either program because its components do not include land use or land acquisition and there is no economic or physical displacement resulting from the programs’ implementation. The schools and ECD sites where the Education Program is implemented are property of and managed by the DBE or DSD. The use of living natural resources or natural areas are not the focus of this Project therefore no impacts associated PS6 on Biodiversity Conservation and Sustainable Management of Living Natural Resources. The appraisal did not identify indigenous people (from the two indigenous people groups officially recognized) as part of the programs’ stakeholders, including participants and beneficiaries, nor impacts or risks on cultural heritage; thus, there are no impacts identified with respect to PS7 Indigenous Peoples and PS8 Cultural Heritage. 

If IFC’s investment proceeds, IFC will periodically review the project’s ongoing compliance with the PSs.

   Policy 

Anglo American has corporate Environmental Social and Health and Safety (“ESHS”) policies in place, including the commitment to implement its Safety, Health & Environmental Management System (SHE Way Standard) in all its managed operations. The company’s corporate policies are largely aligned with IFC Performance Standards and include Anglo American’s Sustainable Mining Plan, Code of Conduct, Business Integrity Policy, Responsible Sourcing Standards for Suppliers Policy, Anglo American Safety Golden Rules, Anglo American Speak-Up, Anglo Fatal Risks Standards, and the Anglo American Social Way (https://socialway.angloamerican.com/en). The company has also contractually established compliance requirements of both the Education and Zimele Programs and its partners with Anglo American's ESHS corporate policies. 

 Environmental and Social Management System 

The company has an established corporate Environmental and Social Management System (“ESMS”) which is implemented at each BU. However, program specific ESMSs are yet to be developed for the Education and Zimele Programs to manage and mitigate ESHS risks specific to the programs and to promote compliance of the programs’ activities with Anglo American’s corporate ESHS policies and IFC’s PSs. In alignment with Anglo American’s corporate ESHS policies and IFC’s PSs, Anglo American will develop and begin to implement a streamlined ESMS tailored for the management of risks that are specific to the Education Program (ESAP #1). For the Zimele Program the ESMS will also include alignment of the excluded businesses list of the program with the relevant items of the IFC Exclusion List (ESAP # 5).  

Identification of Risks and Impacts 

Education Program. Strategic and operational risks associated with the program were identified by Anglo American in 2018 and a corresponding Workplace Risk Assessment & Control Matrix was developed. The potential risks identified in 2018 included: (i) risk on reputation and limited stakeholder support; (ii) lack of maintenance of infrastructure at the schools improved by the program; (iii) potential Human Rights violations; (iv) high incidence of social problems in certain schools (e.g., drug/alcohol abuse/ gangsterism); (v) ineffective management of contractors; and (vi) safety incidents related to infrastructure (e.g., building collapse, pit latrine fatality). The company will expand, update and assess the program’s ESHS risks and impacts process and develop action management plans and measures as part of the ESMS, as per ESAP #1, including risks specific to child abuse safety protection and Gender-based Violence and Sexual Harassment (“GBVSH”) associated with the behavior of workers hired by the program. 

Zimele Program. The Program Management Team maintains an overall Risk Register related to the goals of business development and job creation. However, ESHS risks assessment processes are yet to be developed. In order to minimize risk, the program has established the exclusion of the following businesses from financing by the program: (i) business financing existing debt; (ii) gambling equipment supplies for gambling facilities or hotel casinos or accommodation in which gambling facilities are or are planned to be located; (iii) production, manufacturing and sale of alcohol and tobacco and related products, where the production or service is the core business; (iv) production, manufacturing and sales of military requirements, support police or other law enforcement activities, where the production or service is the core business; (v) non-profit organizations including, non-profit companies (i.e., churches; public schools; charitable organizations), (vi) stokvels (a type of credit union) and clubs; and (vii) money raising / enrichment transactions where customers have own assets and contributions. As per ESAP #5, the company will supplement its existing exclusion list with IFC's exclusion list and address relevant ESHS risks as part of its ESMS. 

Management Programs, Monitoring & Review 

Education Program. Compliance with the company’s ESHS policies is contractually required for partners and contractors. The program performs comprehensive monitoring of the progress and outcomes of educational goals and a reporting structure is in place. As part of the ESMS for the program, the company will develop procedures to include monitoring, auditing and reporting of the partners and contractors in relation to occupational and community health & safety, labor conditions, and stakeholder engagement. 

Zimele Program. Similar to the Education Program, the delivery partners are contractually required to comply with the company’s corporate policies and ESHS requirements, as applicable. As part of the ESMS, the company will develop procedures (or alternatively, integrate within BUs procedures) to ensure adequate monitoring, auditing, and reporting of the partners and contractors in relation to labor conditions, community health & safety, and stakeholder engagement. 

Organizational Capacity and Competency 

The Education Program is overseen by a Steering Committee that provides strategic leadership and direction as well as governance and support. The Program Lead has the accountability of delivering the program and is supported by partners and contractors. The Zimele Program is overseen by BU-level Steering Committees that provide direction as well as governance and support. The Program Lead reports into Group Corporate Relations and has the accountability of delivering the program and is supported by delivery partners. Both programs have a well-developed organizational structure suited to deliver the programs’ respective development goals. The teams will strengthen existing capacity around E&S risk management and compliance with the company’s ESHS policies and IFC’s PSs per ESAP #1 and #5.

    The Education Program currently employs approximately 150 direct and indirect employees and the Zimele Program 160 direct and indirect employees, including partners and contractors. 

Workers' Organizations. The South African labor regulations protect the fundamental rights for collective bargaining, formulate industrial policy, and ensure employee participation in decision-making in the workplace. Currently, none of the programs’ direct or indirect employees are associated with a union, and to date there are no negotiated collective bargaining agreements in place. 

Non-discrimination & equal opportunities, and Prevention and Management of Harassment and Sexual Harassment. Anglo American has policies on Human Rights, equal opportunities, and inclusion & diversity. In addition, Anglo American has the internal policy called Group Policy on Bullying, Harassment and Victimization, applicable to all employees and contractors. As per ESAP #3 and #7, both programs will develop procedures, monitoring, related reporting, and auditing of compliance with Anglo American's labor policies and related legislation by partners and contractors. 

Worker Grievance Mechanism. Anglo American's corporate policies allow for the implementation of grievance management mechanisms to provide employees and contractors the opportunity to raise concerns and grievances related to non-conformities with the code of conduct, working conditions, and policies and procedures, confidentially and without retaliation.  Based on its policies and IFC PSs, both programs will develop employee grievance management procedures as per ESAP #3 and #7 to ensure adequate management of complaints from workers or related to the labor environment. 

Occupational Health and Safety and Workers Engaged by Third Parties.  The programs’ partners are required to comply with Anglo American's Occupational Health & Safety (“OHS”) policies as specified in the contractual arrangements. 

For the Education Program, in alignment with its ESHS policies and IFC's PSs, Anglo American will develop and begin to implement a program-specific workforce management plan and related procedures intended to align contractors with said standards when implementing their work, including: (i) OH&S measures; (ii) a specific code of conduct and related induction training for program workers that describe their expected behavior in the school environment and communities; and (iii) an internal grievance procedure through access to adequate channels (including those confidential, anonymous and specific for GBVSH complaints)  for all program workers (ESAP #3). 

For the Zimele Program, in alignment with its ESHS policies and IFC’s PSs, Anglo American will develop and begin to implement a program-specific workforce management plan intended to align contractors with said standards when implementing their work, including:  (i) a code of conduct and related induction training for program workers that describe the expected behavior with beneficiaries and other stakeholders; and (ii) a standardized/integrated internal grievance procedure for the program as a whole, including the access to adequate channels for GBVSH complaints at the workplace (ESAP #7).

 Management of COVID-19 Impacts. Under the South African Government National State of Disaster on COVID-19 the programs have implemented contingency actions and national directives in 2020, aiming at preventing, monitoring and mitigating COVID-19 cases, including awareness and protocols based on a risk categorization of level of exposure of workers. The Education Program adopted similar actions as the DBE prescribed and complied with related rules applicable to the education sector. This included various lockdowns, educating remotely and/or educating smaller groups. The Zimele Program adopted a remote approach and provided virtual training. 

    Education Program: In 2020, the company developed a guideline to assess ECD centers against a baseline list of potential risks on program employees, children and ECD practitioners. A detailed action plan on how these risks would be addressed is yet to be developed. In relation to the schools where infrastructure improvement is implemented, the program follows the DBE Norms and Standards. In alignment with its ESHS policies and IFC’s PSs, Anglo American will develop and begin to implement program-tailored procedures which are intended to assess, monitor and manage H&S risks of the program on stakeholders in the school environment and communities, including (i) procedures and measures intended to control, prevent and manage risks associated with behavior of program workers, including child-centered risks associated with safety and protection, in particular for child abuse; and exposure of educators and students to GBVSH, and inequalities on children with disabilities; (ii) specific H&S procedures designed to oversee infrastructure improvement design, implementation and works delivered, and external audits on safety assurance; hours to carry out work (outside school hours) and adequate awareness and engagement to local communities regarding the execution of works; and (iii) specific training on emergency prevention and response associated with infrastructure delivered to schools (ESAP #4). 

Zimele Program: The nature and structure of the program’s components and activities suggest low ESHS risk for beneficiaries and communities. Exposure of the beneficiaries to the program employees is limited to the coaching sessions or when administrative assistance is provided in the hub (most of them located in common areas at the BUs (mine site)). The enterprise and supplier development trainings are provided in public lecture rooms, generally in groups and lately online as a COVID-19 precaution. In alignment with its ESHS policies and IFC’s PSs, Anglo American will develop and begin to implement program-tailored procedures which are intended to (i) prevent, raise awareness, and address risks related to GBVSH on program's beneficiaries, with particular attention on youth development beneficiaries with ages between 19 and 25 years old; and (ii) monitor and prevent risks associated to harassment or reprisal on program beneficiaries that become mine suppliers in coordination with relevant BUs. The procedures will be connected with the external grievance mechanism described in ESAP item #6 (ESAP #8). 

Security Personnel. The nature of the programs is such that security personnel are not hired or required for the programs to be implemented and therefore was not considered further. Most of the activities take place in areas or locations that are not under the programs' control.