Impacts related to the following Performance Standards were not identified during IFC’s review: PS5: Land Acquisition and Involuntary Resettlement is not applicable as the farmlands leased by the company which are either privately or State owned (for use in both crop production and the farms) are leased through willing lessor/willing lessee transactions. Land transactions can be summarized as follows: land availability is tied to each village with each hectare of land being valued by the Regional State at a maximum price of 35,000 Hryvna or UAH (approximately US$1,308). Agricultural land can only be leased whereas industrial land can be bought. This practice is set by Ukrainian law. The land for the new meat processing facility (5 ha), being industrial land, was bought from several owners 8 years ago. When the land is State owned, an amount of 8% of the maximum land value is paid as annual rent for the land, and when it is privately owned the rental price is currently negotiated up to 11% of the maximum land value (3,850 UAH). Current lease agreements for farmland run between 5-10 years, which the company is trying to extend to 7 – 12 years upon renewal (7 years now being the legal minimum); land used for the pig farms (and therefore built upon) is for up to a 49 years’ lease, which used to be the maximum length of time allowed under law. Lease agreements up to 99 years can now also be negotiated. Payment for the use of land for pig farms is required to be paid as a lump sum (i.e. the valued amount), up front at the time of signing the lease; PS7: Indigenous Peoples (IP’s) and PS8: Cultural Heritage do not apply as IPs are not present and the land used are consolidated agricultural areas and does not contain any cultural heritage.

This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability. The E&S risks and impacts associated with this project are limited, site-specific and can be readily addressed through generally accepted mitigation measures, as described in the disclosed ESAP agreed upon for the 2018 IFC investment.

Environmental and Social Risk and Impact Assessment and Management System (ESMS): The company has implemented a process for continuously identifying and managing the E&S risks of its existing and planned operations. An Environmental Impact Assessment (EIA) is required to be developed (known as OVNS in Ukrainian) and submitted to the local authorities to obtain an operating permit for each operation. All new Company’s facilities will be assessed by the competent authorities prior to the start of construction, as part of the permitting process. Farm #10 has been finalized and is operational since 2018. The company completed the required EIAs for Farm #11 (not part of the 2018 IFC investment) and of the rendering facility, including public consultations, and shared the documents with IFC for review (ESAP #1), which were found satisfactory. The preparation of the EIA study for the new meat processing facility, is scheduled to start in May 2020, will include cumulative risks and impacts as it will be adjacent to existing Nyva operations (i.e. concrete plant, wastewater treatment facility, meat processing facility and the feed mill). The preparation of an EIA in Ukraine is not only a requirement for greenfield projects, but also for existing brownfield operations every 5 years. The latest EIA updates were required for the feed mill and the meat processing facility which are now valid for 10 years. The reports showed that existing operations are in compliance with all regulatory requirements. The company uses qualified consulting companies that are licensed by the Ministry of Environment to conduct the EIAs. Subsequently, the E&S risk assessments and management plans are used to inform and update company policies, Manual of Procedures, yearly management programs, EHS training plans, and EHS monitoring and reporting requirements.

Policy. The company has established an overarching policy that defines its environmental, (including occupational health and safety) and social objectives and principles. It includes the commitment to comply with applicable Ukraine laws and regulations and be consistent with the principles of the Performance Standards and the applicable WBG General and sector specific EHS Guidelines. The company published the policy on their website (Link: http://niva-group.com).

Management Programs. The company has developed an Integrated environmental, health and safety (EHS) management system which incorporates a variety of procedures and practices that are operationalized by managers and staff throughout the organization. The slaughterhouse and meat processing and feed mill operations are certified to ISO 9001, 14001 and ISO 22000, incorporating a Hazard Analysis and Critical Control Point (HACCP) program. The proposed slaughtering and meat processing facility will also be certified for these ISO certifications. In 2019, the grain production was certified under the ISCC scheme (see PS 6 for further information).

Organizational Capacity and Competency. The cultivated lands (23,000 ha) are under the responsibility of the Chief Agronomist and good agricultural practices are implemented (such as safe application of pesticides, manure application, etc.) by his team of agronomists. They work alongside the Group-wide Environmental manager and Occupational Health and Safety (OHS) Manager. Group-wide Human Resources are managed by a manager and her team. The HR team includes a community liaison officer responsible for regularly visiting the communities as part of Nyva’s CSR programs and stakeholder engagements and grievance mechanism. Nyva’s CEO is also actively involved in public consultations and stakeholder engagements for the new operations. The maintenance of the ISO systems is the responsibility of the general manager at the meat processing facility. The company interfaces with regulators (including those responsible for environmental oversight) through the Group’s Environmental manager. Her duties include, among others, maintaining permits and licenses, overseeing the air emissions and wastewater monitoring program and ensuring proper waste collection and disposal. As part of the HACCP program, biosecurity measures are in place for the feed mill, slaughterhouse and meat processing plant. In addition, all pig farms have stringent biosecurity measures in place (see PS6 for more detail). Access to all operations are controlled by security guards and secured entry (i.e. authorized personnel only with key cards).

Training. The company provides training for those engaged in jobs that are related to food safety, environmental and occupational health, and safety hazards and risks. All employees receive an annual OHS training and there are specific trainings for high-risk jobs (e.g. electrical works, welding, working at height, crane operators, applying pesticides and working in the cold storage). Due to the nature of these jobs, the head of the relevant department, in cooperation with the Group-level OHS manager, also provides every 3 months a safety instruction as a refresher. The risks of these high-risk jobs are assessed by both workers, OHS manager and the plant’s managers in a collaborative process. Safe working procedures are then developed and documented. Specific examples of this practice are provided below in the PS2 section describing the company’s OHS management practices.

Emergency Preparedness and Response. Emergency Preparedness is required by the State Fire Security Department (under the auspices of the Ministry of Extraordinary Situations). The plans developed for all facilities were done in collaboration with this Department, reviews and clears by this same Department, and then adopted by the company. These plans are part of the Integrated EHS management system. Required permits also address possible sources of accidents that may lead to emergencies, e.g. those that pertain to the management of hazardous materials. Annually, the company holds quarterly evacuation drills for all its operations.

Monitoring and Review. The above EHS management programs incorporate performance indicators; for example, wastewater is treated to meet effluent standards (see PS3 below for more details) and occupational health and safety is judged against lost time incident frequency reporting (LTIFR) – see PS2 section below. Internal EHS audits are performed across all operations by the Group-level Environmental and OHS manager. Both managers and the Heads of Departments in all operations are part of the Safety Committee which holds monthly safety meetings. As per the certified management system requirements and the internal Integrated EHS management system, senior management receives periodic performance reviews on the effectiveness of those systems.

Annual key E&S performance indicators (KPIs) and targets applies for operations level management (ESAP #2). Plant-level Safety Committee, in cooperation with the HR department, reviewed management performance against these, on an annual basis. For the past three years, OHS performance indicators has been established which may lead to monthly bonus, if successfully met by management and staff. Such bonus may represent 20-30% above worker’ base salary. Between 80 – 90% of the workers receive this monthly OHS bonus.

Working Conditions and Management of Worker Relationship. There is a total of 1,367 employees of which 284 (21%) are women (who mostly work in the meat processing operation). They are all permanent employees and there are no part time or temporary workers. When a worker assigned to a specific workplace does not have sufficient work, he/she is re-assigned to another job within the organization. Also, to accommodate the seasonality of the farming operations, the company allows flexible working hours (as per Ukraine labor law for agricultural workers) so longer hours when needed are balanced with shorter hours when the work is less intense. There are no contracted workers.

The minimum age for full time employment in Ukraine is 18; although the law allows apprentices/ trainees to be hired at 16. During the summer, the company has approximately 20 trainees, who can only work 7 hours a day and are prohibited from undertaking hazardous work or working overtime or night shifts. These trainees are paid an above minimum wage salary that ranges between 50-70% of what a full-time employee performing the same job is paid. Proof of identification – and age – is required as part of the recruitment process. The current minimum wage in Ukraine for all workers is 4,723 UAH/month (US$203/month); however, the company’s minimum salary paid is approximately double of this amount.

As part of the commissioning of the rendering facility, the expansion of the meat processing operations and the planned pig farm #12, the company will be hiring 400 new employees over time. Given the competition among companies in the region, the new hires may come from other parts of Ukraine as it is already the case. For these employees, the company will be constructing a hostel where they can stay for free. The design of this hostel or dormitory was an ESAP item under the 2018 investment. IFC already validated that the design of this worker accommodation would meet the IFC/EBRD guidelines.

Workers’ Organization. Within the company there is an internal commission of employees, formed by employees who are elected every 3 years. This body provides a variety of functions including that of a social organization (that provides support to worker’s families with funds provided by the company for example) and does collective bargaining as required under the labor law for better wages and other benefits. Unlike a trade union, no dues are required to be paid to this commission. Company management stated that if the commission wanted to become part of a larger trade union, they would not prevent this from happening.

Human Resources (HR) Policies and Procedures. The company has adopted and implemented human resources policies and procedures that are either in compliance with or exceeding the requirements of Ukrainian labor law. As part of 2014 IFC investment, HR policies and procedures were enhanced, including the establishment of a Workers’ grievance mechanism – including the ability to internally record complaints anonymously – and this was communicated to the entire workforce in accordance with the requirements of this performance standard. When applicable, such mechanism is also available for contractors. During recent regulatory audits, the company’s labor practices demonstrated compliance to the requirements of Ukrainian labor law.

Working Conditions and Terms of Employment. General terms of employment are contained in a collective contract as part of the employment book, which is registered with the state, and that every worker receives from the company upon being hired. This document includes details on terms of employment such as pay and working conditions, as well as overall benefits. An individual’s specific job requirements are communicated during the interview process and are also contained in a written offer letter. The Ukrainian constitution contains provisions for non-discrimination in hiring and promotion which is included in the HR policy. Jobs are advertised based on the skills and experience required. Equal opportunity (regarding promotion) is achieved by internally posting the job requirements for new positions as well as advertising them externally. Bonuses are paid annually to all employees which is calculated individually based on company financial performance.

Gender and Gender Based Violence (GBV). Completing the Contextual Gender and GBV risk tool resulted in a medium risk for agribusiness in Ukraine. As part of the HR policy, any form of harassment is not tolerated, and this is communicated to all employees. Recently, the HR Department completed an employee survey that included questions about harassment within the company. The results are currently being analyzed and will be used as a first step to develop a Code of Conduct.

COVID-19 Measures. Nyva has introduced stringent COVID-19 contingency measures for all its operations, including limiting the number of workers during shift to ensure social distancing. All workers are screened 3 times a day. Commuting transport is still offered with limited people on the bus and meals are provided with all precautions (social distancing and full cleaning). So far, Nyva has not had any positive COVID cases. There will be no lay-offs and, in case of workers getting sick. They will be offered paid vacation. Management has daily call to discuss the status and department heads check in with their workers on their well-being.

Retrenchment. As the company has been expanding its operational footprint over the last years (by building new pig farms and upstream processing facilities), there has been no retrenchment; this trend will continue as the company will expand its operations in 2020. No retrenchment is considered due to the COVID-19 crisis. It was stated that if retrenchment was to be required, then the company would follow the provisions of Ukraine labor law which are aligned with PS2 requirements and include: at least two months' notice, one average monthly salary, compensation for unused vacation and their employment book. A written resolution (order) should be issued by the company's director or chairman, which contains certain information, such as the reasons and date of termination.

Grievance Mechanism. The company has a worker’s grievance mechanism, which includes the ability to receive and record complaints anonymously. It was reported that this mechanism is presented at the job interview as part of the rights and duties of employment. In addition, the State’s labor department can also receive complaints directly from employees, including those posted anonymously. They will then visit the company and review the issue. No grievances were lodged recently.

Occupational Health and Safety. Jobs that involve hazards and risks (e.g., welding, working at heights and in confined spaces, those working in grain elevators, those operating heavy farm equipment and applying pesticides, using vertical saws in the meat processing plant) are subject to written work instructions that describe the hazards and risks and the mitigation of those risks. Measures, based on the risk assessment, follow the mitigation hierarchy and include risk avoidance measures, such as safety devices and machine guarding on equipment in the processing facility, and mechanical loading of the boilers. Administrative controls include limiting the hours that individuals work on those jobs and making line supervisors and managers responsible for the behaviours of those who report to them. Engineering controls include preventative regular cleaning of the workplace to prevent dust build up, the maintenance of cranes and other equipment, and use of personnel protective equipment (PPEs, such as hard hats, boots, dust masks or respirators, safety glasses and/or full-face masks, gloves and coveralls, as appropriate). Those who conduct such work are trained and only upon completion of such, and the subsequent receipt of a worker’s card permitting them to undertake such work, can they carry out those tasks. Provision of EHS and the Permit to Work System training is the responsibility of the respective Heads of Department.

All workers undergo mandatory periodical medical examination specific for their job. When an accident occurs, an Accident Committee, including the State Authority, is formed to investigate the accident and mitigation measures are developed to address root-causes. These are communicated to all employees and employees doing a similar job are retrained. The company has not reported any lost time injuries (LTI) since 2017. Overall safety awareness is high, including strict use of PPEs, in the company and this was noted during the last IFC supervision visit in November 2019. Housekeeping has improved considerably. The safety awareness was improved through strengthening workplace organization, reviewing training effectiveness and holding daily safety talks. Furthermore, the introduction of the aforementioned OHS KPIs’ monthly bonuses to management and staff also helped. As these LTI rates appear to indicate a very safe working environment, the company will undertake a cross-audit of its overall reporting practices to ensure that all accidents, incidents and near misses are reported and fully recorded. Annual reporting of data from all operations will further allow for benchmarking and identification of areas where improvements shall be required.

The company only uses a limited number of contractors. For example, the new grain storage silos are constructed by a contractor and specialist repairs to equipment (cranes, combine harvesters, etc.) are carried out by outside service providers. Contracts with these service providers contain requirements on strict compliance with local labor and occupational health and safety regulatory requirements. Such companies are required to provide supporting evidences of current licenses and permits prior to the commencement of work. General awareness of hazards and risks (e.g., fire prevention and protection) and specific working instruction based on risk and job type are also reviewed with the contractors before work can commence. The company has strengthened its OHS monitoring program to ensure that contractors adhere to the contractual OHS requirements and the company’s OHS procedures (ESAP #4).

Fire Safety. Sufficient fire safety equipment is present to prevent and manage fire incidents. The company’s fire safety plan includes periodic fire and evacuation drills. A management system exists to ensure that corrective measures are implemented. This includes measures for prevention of dust explosions at the feed mill. The company conducts drills for all their operations as per its fire safety plan and the regulatory requirements. Drills are analyzed and corrective measures implemented accordingly.

The main environmental risks associated with the Nyva vertically integrated operations are related to solid waste management, wastewater management, air emissions and resource consumption. 

Resource Efficiency. Water for crop production: Crops are rain fed and do not require irrigation. Given that the region experiences between 500-700mm of rainfall per annum, this element of the vertically integrated production system is not a significant consumer of water. Water at pig farms and meat processing operations: Raw water needs for the pig farms are met from permitted groundwater sources. The State’s geological department conducts quarterly monitoring of these wells to ensure the extraction levels do not exceed the sustainable volume approved in the permits and to ensure water quality is not deteriorating. The farms can extract a maximum of 300 m3 of groundwater per day. On average, water consumption at pig farms are estimated at 159 m3 per day. Monthly consumption of water use for the pig farms and for the meat processing plant is reported to the authorities. The water consumption per pig reared is 1.47 m3/pig/180 days. Whereas on the higher end, it is still within the range of consumption reported in the literature on pork production the United States (i.e. an average of 7 liters/day throughout the entire life cycle of the pig). The annual water use in the slaughterhouse is 280 liter per head. For 2019 this resulted in 17,242,680 liters water use. Water meters are in place to monitor water use.  A competition is held among the pig farm managers to conserve water, where possible, and the results are compared periodically. The company will look for further opportunities to implement water conservation practices and report targets on an annual basis.

Energy. The meat processing operation uses steam generated by a recently installed biomass-boiler. This boiler also provides steam for use in the feed mill. The capacity of the boiler is 2.5 ton of steam/hour (which equates to 2MWth). Each farm (and the concrete (cement) plant and the area used to service agricultural machinery) is equipped with a smaller biomass boiler of 0.75MW capacity (approximately 1.2MWth) to produce hot air and water – to keep both employees and pigs warm in winter. As per environmental regulations, the use of each boiler is subject to an assessment prior to its use. This assessment takes into consideration the proximity of any communities; for biosecurity reasons, Nyva’s pig farms are located away from communities (at least 1.5km from the nearest settlement). Each boiler is equipped with a 100m3 capacity water tank. The size of these boilers precludes the need for point source air emissions monitoring under the General EH&S Guidelines (as less than 3MWth); however, every 3 months monitoring is undertaken to satisfy Ukraine regulations (under Ukraine Standard 201-97). Review of the last monitoring reports show that the company is in compliance with the requirements contained therein.

The meat processing operation has six cold storages and the refrigerant used in the meat processing operation is R407C and R404A, a non-ozone depleting substance. For the new meat processing plant, an ammonia refrigeration system will be installed. Risk and impacts of ammonia use will be included within the scope of the required EIA (see ESAP #1).

The biomass-boilers at the eleven pig farms and that in use at the construction site of pig farm #11 consumed a total of 10,567 tons of straw in 2019. The company is self-sufficient in straw production. The State issues an operating permit for the biomass-fired boilers. The company is in compliance with all operating air emissions parameters and limits. The grain dryers at the feed mill use natural gas as fuel source and the annual consumption for 2019 was 1,397,050 m3. Electricity consumption was 18,494,479 kwh for 2019.

Greenhouse Gas Emissions. Scope 1 greenhouse gas (GHG) emissions from the raising of pigs and combustion of the above amounts of straw (for the current 11 farms in operation), and the natural gas consumed in the meat processing facility and the feed mill equated to 16,252 tons of CO2 equivalent. Scope 2 emissions (from electricity consumption) added a further 5,363 tons. Given that the above estimated emissions do not exceed the 25,000 tCO2eq reporting threshold as defined in PS3, no further reporting is required.

Pollution Prevention. The farms utilize forced ventilation (mechanical) for odor and ammonia control at the pig housings. In the meat processing plant, the cooking and smoking of meats only occurs to a small proportion of the products. The process was not noted to be inherently odorous during the IFC visit. There have been no complaints from the local village situated about 250-300m at the closest point for the past 6 years. At the feed mills, all 10 elevators are equipped with dust aspiration systems. During the 2017 IFC appraisal, dust particles were noted around the unloading station at the elevators. The unloading station is an open dump pit which is covered when it is raining. The company stated that they measure dust emissions at fixed points and measurements do not exceed the regulatory limit of 50 mg/m3. However, there are nearby residents (approximately at 200m distance) that could experience nuisance due to dust releases. The company has not received yet any complaints via its community grievance mechanism. The company will report, on an annual basis, all dust measurements benchmarked against the Ukraine regulatory limit and WBG EHS guideline levels. Recent monitoring results for 2019 demonstrate compliance with both limits. Mitigation measures are taken if the limit is exceeded. As set forth in the ESAP (ESAP #5), the company will build a fixed roof and install ventilation at the pit level to prevent dust releases at the four unloading areas. The design was reviewed by IFC and found satisfactory. Due to the COVID-19 crisis, the construction of the roof has been postponed and is now expected to be completed by August 2020.

Wastewater Treatment. Wastewater from the meat processing plant is treated in an on-site WWT plant that also treats the sanitary wastewater (approximately 20% of the total treated volume) from the nearby community. Monitoring results reviewed indicated compliance with WBG EHS Guidelines for meat processing. The treatment plant commissioned in April 2017 was designed by an Austrian company and is working efficiently. Monitoring results regarding effluent quality has been recorded, quarterly and is annually reported to the authorities. Any exceedances to applicable indicative values have been readily addressed to ensure continuous compliance with WBG EHS Guidelines levels for wastewater. Wastewater from the pig farms is discharged to the closed manure storage at the farm. The slurry is discharged to the company’s own fields twice a year (70 tons/ha).

Integrated Pest Management. In principle, preventative measures are taken first before pesticides are used as per the company’s Integrated Pest Management (IPM) Plan. Only those crop protection products that are allowed to be used by law in Ukraine are utilized. The company cross-listed the chemicals that they use against the World Health Organization (WHO) Recommended Classification of Pesticides by Hazard (2009). Nyva, through its Chief Agronomist, provides specific training for handling and applying CPP to its staff. All products in use are Class III. Pest control is in place at the feed mill and at meat processing plant as part of the food safety management system.

Solid Waste Management. The amount of solid waste generated by all company’s operations is estimated as part of the EIA required by the State prior to the commissioning of the facilities. Data on the actual amounts generated are maintained and submitted to authorities to demonstrate compliance with these expected norms. Records (manifests) of final disposition of hazardous wastes (e.g. spent fluorescent tubes, plastic, paper, glass, protective clothing, lead acid batteries, oils and lubricants and used tires) are also maintained by the company; wastes are removed and transported by licensed contractors and are either recycled or disposed of in licensed landfills. Management of pig carcasses from farms (i.e. pigs that die prior to reaching the age to be slaughtered) are transported to the rendering facility by a dedicated vehicle. A washing and disinfection protocol is followed. The wastes from the meat processing plant follow a similar process of transport and washing protocol. With the planned rendering plant there will no longer the need for the third-party rendering plant. The planned plant will be using state of the art technology producing bone meal and fat. The plant will have a 2km sanitary protection (buffer) zone.

Hazardous Materials. Hazardous materials (e.g. cleaning chemicals) are kept under lock and key in central locations in each pig farm and at the feed mill. The company has completed an asbestos survey and now has an asbestos management program in place, including replacement of roofing plates at the flat storages and insulation materials. All asbestos materials will be replaced by 2020.

The company operates seven diesel fuelling stations in its operations with single walled above ground storage tanks of various volumes with a fuelling pump. At the feed mill and storage facilities, it was noted that the tanks were not fitted with a secondary containment and fuelling was done on uncovered ground. The company inspected all storage and fuelling locations and installed secondary containment holding 110% of the tank volume and a liquid tight floor for fuelling as well as provision of spill response materials and equipment (ESAP #6). To demonstrate completion, photographic evidence was provided.

Community Health and Safety. Adverse impacts on the health and safety of communities located nearby Nyva operations could result from practices associated with farming, such as inadvertent exposure to land application of manure (used as fertilizer), exposure to agrochemicals (e.g. pesticides), inappropriate operation of company trucks in populated areas or exposure to excess noise and/or inappropriate disposal of effluent to surface water bodies from the meat processing facility, and odor and ammonia releases. In addition, risk of possible outbreak of diseases in the pig population that could transfer to human populations could also occur.

Measures have been taken at the pig farms to minimize odor and ammonia releases. Odor nuisance was not noticeable during the site visit to the pig farm visited. Covered manure lagoons are built where they are least likely to cause annoyance to sensitive receptors, considering the distance to receptors and prevailing wind direction. The company ensures the good management practices currently implemented on existing farms land are extended to the new farm and lands acquired. For example, the application of manure to crop lands, for the summer and winter crops, is generally limited to areas close to pig farms. Furthermore, spreading is done during the day, and weekends and public holidays are avoided. Attention is paid to wind direction in relation to neighboring houses and weather forecast is taken into consideration (avoidance of rain after application to avoid leachate). As noted above, due to biosecurity reasons, the pig farms are located at least 1.5km from populated areas. Through their community liaison officer, the company informs in advance the local villages of the intention to apply the manure and/ors application of agrochemicals.

Trucks (for moving pigs and feed between operations and other agricultural raw materials to and from operations) are maintained by the company; the garage and chief mechanic are required to review and sign off on a vehicle after maintenance and before it can be used to ensure it is roadworthy. All truck drivers are tested every day for alcohol and blood pressure before being allowed to drive; they also undergo a comprehensive annual health examination. The company reports that there have been no accidents involving their trucks since 2014. The company should be cognizant of all impacts that may occur due to truck traffic moving through local villages (such as dust, vibration and noise) and ensure that all trucks are driven per local laws and that they are not overloaded. Being receptive to complaints stemming from truck traffic must be considered as part of the updated Stakeholder Engagement Plan (see below).

Separation of the public from company operations is achieved by maintaining a sanitary protection zone (SPZ) and their pig farms being surrounded by 2.7m high concrete walls as part of the biosecurity measures. The exception is farm 4, where the distance to the community is 900m. There are no inhabitants in this community and the company has received an exception permit from the government. The chance of inadvertent access to the farms (and exposure to any kind of transmissible disease) is further minimized as measures regarding limiting access to authorized personnel only by having on-site, unarmed security guards.

Nyva’s current operations are located in consolidated agricultural lands, and as such represent no adverse biodiversity impacts in those locations. This habitat mapping has been validated during the EIA study for each new farm and other operations (i.e. feed mill and rendering facility). In 2019, the company’s grain production (corn, canola and rape) was certified against the International Sustainability and Carbon Certification (ISCC) which ensures that i) Biomass is not produced on land with high conservation  value (HCV) areas and high carbon stock (HCS); ii) Good agricultural practices protecting soil, water and air are applied; iii) Human rights, labour and land rights are respected; iv) Sustainable material is traceable throughout international supply chains; and v) Greenhouse gas reduction targets are met (e.g. for European biofuels markets). ISCC is a globally leading certification system for sustainability, traceability and greenhouse gas emission savings. ISCC certifications are conducted by independent third-party Certification Bodies cooperating with ISCC. Review of the 2019 audit reported demonstrated compliance against the standard with no non-conformities.

In September 2016, a biosecurity audit was undertaken by representatives of the United States Department of Agriculture and the Association of Ukrainian Pig Breeders in relation to African Swine Fever (ASF). For over a year, the company had strict quarantine rules in place which was acknowledged during the audit. Some recommendations (i.e. clear brush and weeds in 10m zone around pig farm’ perimeter fence; cleaning protocol to focus on clean section before dirty section; farm management to meet routinely with village leaders on ASF and measures taken) were made which were implemented by the company. Management of carcasses from farms was improved as part of the IFC 2014 investment and noted in the 2016 biosecurity audit report.

The company places a strong emphasis on animal welfare management practices and views this an important part of meeting its food safety and product quality objectives. It designs, constructs, and operates its pig farms to achieve four underlying conditions of animal welfare: (i) ensuring appropriate and adequate water and nutrition to all pigs; (ii) detailed control and real-time modulation of living environment in the pig barns in relation to temperature, humidity, lighting, living area segregations, adequate space per pig; (iii) a stringent disinfection and inspection regime practiced at all farms to reduce the probability of pigs potentially catching diseases thereby contributing to their well-being; and (iv) ensuring that all frontline staff at farms are trained as per Standard Operating Procedures to interact with and handle all pigs with care and concern, and with keen attention to their emotional well-being. The company’s animal welfare improvements made since the IFC 2014 investment were reviewed during this latest appraisal. The assessment used European Union Animal Welfare Directives pertaining to matters of animal housing and other conditions. Overall, animal welfare at Nyva’s pig farms were judged to be of a high standard in line with the EU Animal Welfare Directive starting from pig farm # 9 (first EBRD finance) and the existing slaughterhouse. The company is committed to also meet the EU Animal Welfare Directive’s requirements for all planned farms and the new slaughterhouse and meat processing plant. The following measures are in place: group housing for sows and piglets; straw pellets on the floor; toys to play with; and smaller groups of pigs held for 2 hours in a holding area at the processing plant. For killing the pigs, CO2 is used instead of an electrical shock.

External Communications and Community Grievance Mechanism. Current means of community engagement with communities include consultations through the EIA process (therefore driven by regulation which includes a public disclosure element) and through engagement activities related to the company’s recently updated Stakeholder Engagement Plan (SEP) and community grievance mechanism. The SEP was updated after a complaint was lodged by the village Peremoha and the NGO “Stop Corruption” regarding the construction of pig farm #11 financed by EBRD which referred to 1) Nyva not following the EIA process and 2) not meeting the sanitary zone. During the IFC supervision visit in November 2019, Nyva admitted having started the construction of the pig farm before the EIA approval was granted. Regarding the second allegation, this was sufficiently addressed in the EIA and in place for the new farm. After the complaint, the construction of the pig farm #11 stopped until EIA approval was granted. All points of the complaint were sufficiently addressed by Nyva in the EIA. The EIA was approved by the regulators. An independent EIA review of pig farm #11 requested by IFC confirmed that the EIA did meet all regulatory requirements, including adhering to the sanitary zone. IFC requested Nyva to strengthen their stakeholder engagement to ensure that all stakeholders were involved in the consultation of the EIA process and not to start any construction before EIA approval was obtained for pig farm #12. This means that not only the communities in those municipality where the project is located are involved in the consultation, but also other communities in the project area of influence. For pig farm #11, the village Peremoha was not invited to the public consultation by the regulators as they belong to a different municipality.

Nyva has developed a Stakeholder Engagement Plan (SEP) covering both existing operations and new projects on an annual basis. Th 2020 SEP was reviewed by IFC and found satisfactory. The foresees in proactive communication on plan to expand the company’s operations in the local newspapers and informing all communities in the area of influence of the planned farm. Furthermore, they will ensure that all communities will be invited for the public consultation of the EIA study and not only the community located in the same municipality as the proposed farm. Reporting on the implementation of the updated SEP, and a synopsis of activities of ongoing reporting to affected communities, will be reported on an annual basis.

Contact name: Oleksandr Kucher

JV LLC Nyva Pereyaslavschyny

2 Pryvokzalna St.

v. Pereyaslavske

Pereyaslav-Khmelnitskiy district

Kyiv oblast, Ukraine