Environmental and Social Assessment and Management System - Policy
Tabreed has an integrated Quality, Environment, Health and Safety Management System (IMS) certified to the requirements of ISO 9001:2015, ISO 14001:2015, ISO 45001:2018 and ISO 50001:2018. The system is implemented at each project site during construction and O&M. Additionally, Tabreed has in place an Employee Policy Handbook, which lays down all policies and procedures related to human resource (HR) management and a Supplier Code of Conduct (SCC) that covers compliance with law, health, safety, environment, quality, labor & human rights, and ethical business conduct of suppliers and vendors. The IMS, the HR policies and procedures and the SCC together comprise Tabreed’s ESMS. The ESMS is currently aligned with the UAE’s national requirements and standards and needs to be modified to meet Indian national requirements, IFC PSs including Good International Industry Practice (GIIP) on some aspects as described in the subsequent sections. Accordingly, DCC will, as mentioned in ESAP # 1: (i) modify and adopt Tabreed’s existing ESMS for its India operations by incorporating Indian national requirements and IFC PSs and align with GIIP as per applicable and relevant parts of the World Bank Group (WBG) Environmental Health and Safety (EHS) Guidelines; and (ii) prior to undertaking projects in other countries outside India, further modify this ESMS to meet the national regulations of the respective countries and expand the scope of the upgraded ESMS to also cover those countries.
Under the IMS, Tabreed has developed its Health, Safety, Environment and Quality (HSEQ) Policy, which covers both on-roll employees and contract workers. The company will, as mentioned at ESAP # 1, modify the HSEQ Policy for its India operations to make it a Health, Safety, Environment, Social and Quality (HSESQ) Policy that is aligned and consistent with IFC PSs. The company will, through this HSESQ policy, commit to requiring all of its projects and all of its subsidiaries to implement the modified ESMS to comply with the provisions of IFC PSs on an ongoing basis.
Under the HSESQ policy, the company will, as mentioned at ESAP # 2, commit to: (a) assess, develop and implement/undertake and monitor projects in accordance with IFC PSs; and (b) completing an E&S risk screening based on a third party E&S due diligence (ESDD) with IFC PSs as the reference framework (including a consideration of climate change related risks) prior to bidding for/entering into a contract for any project.
Identification of Risks and Impacts
Aspects, impacts and risks of the company’s business activities have been assessed as part of IMS development. The IMS includes a risk management procedure requiring a HSE risk assessment which includes: generic risk assessment for all routine O&M activities; and a task risk assessment (TRA) for all maintenance related non-routine activities performed either by Tabreed staff or by contractors. The procedures provide templates for conducting the risk assessment along with criteria for classification of risk. Further, in the business development stage, a third party consultant is appointed to conduct a due diligence of the prospective customer and whether it has all the permits including those related to environment, safety and land title. DCC will, as mentioned at ESAP # 2, require that the ESDD be undertaken with IFC PSs as the reference standard. Further, as part of the IMS modification at ESAP # 1, the company will put in place a screening procedure to ensure adherence to IFC PSs in the projects it bids for/contracts.
In all cases where DCC’s equipment, facilities and operations are located within an existing real estate/commercial/retail building or premises, the company will undertake a third party ESDD, apply the screening procedure mentioned at ESAP # 2 and will proceed to bid/contract only if after application of the screening procedure DCC has obtained assurance that the project can be developed and implemented in accordance with the provisions of IFC PSs. In order to obtain this pre-bid/pre-contracting assurance, DCC will commission a qualified third party to undertake an ESDD with IFC PSs as the reference framework including: (a) carrying out a Life and Fire Safety (L&FS) risk assessment; (b) identifying risks that the project’s water use will cause water stress to third parties, including local communities; areas of known biodiversity value; and areas known to provide ecosystem services; (c) identifying whether any unchangeable aspect of the DC project design or specification conflicts with PS requirements; and (d) identifying whether there are significant ongoing disputes/litigation and conflicts related to E&S matters involving the real estate/commercial/retail building or premises. Further, in cases where the company is considering contracting with a greenfield retail/commercial development or a recent development, which is located in an urban area, the ESDD will additionally define the magnitude of any involuntary physical and economic displacement as per IFC’s PS5, where applicable.
In cases where DCC is considering bidding/contracting with an existing industrial establishment, in addition to L&FS, water stress, project design, disputes/conflicts/litigation, the company will also obtain assurance that there are no legacy site contamination issues, if the company’s equipment, facilities and operations will be located within the industrial establishment’s premises. In case of greenfield projects in peri-urban and rural areas, in addition to L&FS, water stress, project design, disputes/conflicts/litigation, the ESDD and E&S risk screening will also include: (a) screening of biodiversity risk, including critical habitat (CH) screening; (b) mapping the project area of influence to confirm, or otherwise, the presence of Indigenous Peoples; (c) defining the magnitude of involuntary physical and economic displacement as per IFC’s PS5, where applicable; and (d) screening for project effects, if any, on items of non-replicable cultural heritage and critical cultural heritage. Where the company is required to set up a centralized DC system in a city or municipality, DCC will design, build and operate the centralized DC system in accordance with IFC PSs.
Application of the screening procedure will lead to the following outcomes: (a) the acceptance of contracts in which the company’s environmental and social standards (including IFC’s PSs) can be met; and (b) the re-evaluation, renegotiation, or decision on rejection of contracts that cannot be implemented according to IFC PSs. In applying the screening procedure, the company will review: (a) the E&S impact assessment studies of the retail/commercial/industrial establishment project it proposes to contract with and significance of gaps with DCC’s policies and the IFC PSs requirements; (b) E&S mitigation, management and monitoring measures (or E&S Management Plan, ESMP) it is contractually required to implement against the requirements of DDC’s HSESQ policies, IFC PSs and GIIP as described in the WBG EHS Guidelines; and (c) will identify gaps and implement additional measures, within its contractual obligations, to meet the requirements of IFC PSs. In case the risks and impacts of the retail/commercial/industrial establishment project, that the DCC proposes to contract with, are significant, and gaps in mitigation measures with respect to the DCC’s policies (including IFC PSs requirements) are also significant, the company will re-evaluate, renegotiate, or take a decision on not bidding/rejection of the contract.
Management Programs
The IMS includes procedures for: aspect, impact and risk identification and significance determination; HSE risk assessment; energy management system framework; implementation of mitigation measures and operational controls based on the outcome of the aspect, impact and risk assessment process; compliance with regulatory requirements; setting objectives and targets; incident and accident handling, recording, reporting, investigation and analysis; emergency preparedness and response; responsibility and resource allocation; training and awareness; communication, participation and consultation; contractor management; monitoring, recording, reporting and documentation of environmental, health and safety performance; periodic third party and internal audits of each project site; and management review.
The IMS includes operation control procedures for: occupational health, hygiene and welfare; heat stress; noise control; job stress; vibration; manual handling; basic first aid and cardiopulmonary resuscitation; housekeeping; fire safety; permit to work; electrical safety; hazard communication; chemical safety; road safety management; lone workers; contrabands, drugs and alcohol; personal protective equipment; access control; working at heights; lifting operations; hand and power tools safety; compressed gas cylinders; lifting and mobile equipment; hot work operations; excavations; office safety; environmental management; waste reduction action plan; crisis management plan; project health, safety and environmental plan; and environmental management plan for projects). The company will, as part of the ESMS upgrade mentioned at ESAP # 1, develop and implement procedures for: identifying and assessing risks related to labor and working conditions of contractors’ workers for effective implementation of the labor and human rights policy in the SCC.
The procedures are implemented in each project through a project specific environmental management plan (EMP) and health, safety & environment plan (HSEP). For brownfield projects, the IMS requires that the company conduct a due diligence of health, safety and environmental management procedures of the customer. If the procedures are found to be at par with Tabreed’s IMS, the customer procedures are adopted; else Tabreed implements its own procedures under the IMS.
As indicated above, DCC’s typical projects are part of a larger development and do not require any land acquisition or cause involuntary resettlement. Further, a screening procedures will be put in place as part of the ESMS upgrade mentioned at ESAP # 1, to screen for significant land acquisition and involuntary resettlement related risks associated with the larger development for which the company will bid, as presented under PS1 section above. However, centralized DC system for municipalities may require land acquisition and cause involuntary resettlement (including that of landowners or informal settlers) for setting up the cooling facility and laying of the pipeline. As part of the ESMS mentioned at ESAP # 1, for centralized DC system for municipalities, where land has been recently acquired in anticipation or in preparation of the project, and any involuntary resettlement has occurred or will occur on account of DCC’s project, the company will undertake a land acquisition and involuntary resettlement review against IFC PS5 requirements and implement mitigation measures that meet the PS5 requirements. A land acquisition policy and procedure, consistent with IFC PS5, will be prepared and implemented as part of the ESMS upgrade under ESAP # 1.
Organizational Capacity and Competency
Tabreed has a HSEQ function that manages the health, safety and environment aspects of all of its projects. The HSEQ function reports to the Chief Operating Officer of Tabreed. There are in all ten dedicated HSEQ staff in the HSEQ function and five staff are trained lead auditors for ISO 14001 and 45001. During construction, a HSE Engineer is assigned to the site as a shared resource among projects. The HSE Engineer reports to the Project Manager at site and the Corporate HSEQ Head. During O&M, personnel on the-roll of Tabreed (in case of this project on the roll of DDC or Tabreed) is deployed in the project for plant operations and preventive maintenance. These employees are trained on HSE. All employees of Tabreed have key responsibility areas on HSE and are required to undertake activities adopting safe practices and managing pollution in an environmentally sound manner. The company will, as mentioned at ESAP # 3, put in place a HSE organization comprised of at least one corporate HSE expert with provision for appropriately expanding the team when the number of projects in DCC’s portfolio increases. Tabreed’s human resource team is comprised of 35 personnel and the company will also, when required, deploy dedicated staff for human resource management in its India operations.
At the corporate and at each site there is a safety committee comprised of company and contractor’s representatives. HSE training and awareness program are implemented for all employees and contract workers at corporate, other offices and at each project site. This includes induction training, daily tool box talk, mock drills, and refresher courses.
In the upgraded ESMS, the in-house HSE and Social team will be responsible for: application of the pre-bid/pre-contracting ESDD and screening procedure together with appropriate decision authorities in the company; oversight of implementation of the corporate ESMS, and consistent application of the company’s E&S policies across each of its projects, O&M and monitoring follow up on improvement actions; monitoring and reporting E&S performance to DCC’s Board, investors and lenders; corporation wide oversight of internal, external and corporate audits, corrective actions and management review processes; oversight of implementation of any corrective action plan or environment and social management plan at each project site /subsidiary companies based on the ESDD and third party audits; and overall oversight of effectiveness of ESMS implementation.
Monitoring and Review
DCC will adopt Tabreed’s monitoring and review procedures as part of its ESMS mentioned at ESAP # 1. Tabreed’s corporate HSEQ head receives a one-page templated monthly project dashboard on various HSE parameters during construction and O&M stages of projects. The dashboard includes: statistics on hazard and near miss report; hazard and incidents trend analyses; statistics on HSE efforts or leading indicators ; statistics on trainings, including training conducted for contractors. Further, immediate information on any major incident or emergency incident at site is given to Corporate HSEQ Head. In addition to these parameters, as part of upgrade of the ESMS mentioned at ESAP # 1, DCC will also monitor and report energy (electricity and fuel) source and consumption, greenhouse gas (GHG) emissions, water source and consumption, refrigerant type and consumption, quantity and type of solid and hazardous waste generated and disposed, incident frequency rate and severity rate, findings from internal, corporate and third party audits, and corrective actions implemented, compliance with labor laws particularly for contractors’ workers; employee and community grievances received and redressed; and security incidents.
The HSE Engineer at site during construction stage conducts daily monitoring of contractor activities to identify departure from safety procedures. During project development stage, at each stage a [corporate HSE Audit] is conducted. A project closeout report is prepared after completion of construction stage in which the contractor performance including HSEQ and results of project audits are presented among other details. Corporate HSE audits are conducted during O&M stage twice in a year. Plant audits are also conducted during maintenance activities. The Head HSEQ undertakes positive reinforcement activities such as operating from any one project site for an entire day observing the activities conducted at site to form a view on the HSE risks involved and adequacy of procedures established at site for management of such risks. DCC will also adopt these procedures as part of its ESMS mentioned at ESAP # 1.
Further, as part of the ESMS upgrade, the company will (i) undergo an annual third party audit (mentioned at ESAP # 1) covering ESMS and ESAP implementation including a review of the ESDD, the bid screening procedure and ESMP gap analysis undertaken during the year; and (ii) implement corrective actions based on the findings of this annual third party audit. The analysis of information from the internal and third party audits and evaluation program will feed into the annual management review process.