PROJECT

Projects

Environmental & Social Review Summary

Project Number

45465

Company Name

SOUFFLET FINANCES

Date ESRS Disclosed

Aug 16, 2021

Country

Eastern Europe Subregion

Region

Europe

Last Updated Date

May 5, 2024

Environmental Category

B - Limited

Status

Active

Previous Events

Approved : Sep 28, 2021
Signed : Oct 6, 2021
Invested : Oct 20, 2021

Sector

Grain Processing (Milling, Starch, Flour, Malt)

Industry

Agribusiness and Forestry

Department

Regional Industry - MAS ECA

Project Description

Established over a century ago, the Soufflet Group (“Soufflet” or “Company”) is a well-diversified and vertically integrated agribusiness group in the wheat and barley value chains. It is France’s #1 grain originator and input distributor, one of France’s largest grain exporters, and the 2nd largest maltster in the world. The proposed investment is a Euro 50 million A-Loan (“the IFC Loan”) to Soufflet, a longstanding IFC client. This would be IFC’s 6th investment with Soufflet. IFC’s financing will support Soufflet’s working capital needs in focused countries in Eastern Europe and Central Asian (ECA) region, including Bulgaria, Kazakhstan, Poland, Romania and Ukraine (“the Project”). The Soufflet malting division operates malting plants in all five countries, with the latest addition being Bulgaria. The agro division operations involved in grain procurement are in Bulgaria, Poland, Romania and Ukraine, where it operates warehouses and silos. Soufflet supports farmers by funding their inputs either directly or through in-kind pre-financing by providing agricultural inputs (e.g. seeds, fertilizers, crop protection products). IFC proceeds will be used to fund working capital needs of specific Soufflet Group subsidiaries. The proceed scope does not include facility infrastructures in the Project’s countries. IFC’s financing during the outbreak of COVID-19 is counter cyclical and will be channelled towards Soufflet’s agro supply chain (farmers, SMEs, etc.) to increase food security via higher competition, productivity and availability of crops.

Overview of IFC's Scope of Review

IFC’s review of the proposed investment consisted of appraising environmental, occupational health and safety (EHS) and social (including Human Resources) information submitted by Soufflet on its (i) E&S performance and management systems; (ii) responses to the IFC’s E&S appraisal questionnaire, including corporate EHS/ Human Resources (HR) policies and procedures; (iii) EHS monitoring reports of its agro and malting operations; and (iv) information, documents, pictures and videos were also made available on the company’s operations and EHS/HR performance. Specifically, a virtual meeting was convened in May 2021 with the company’s financial and EHS functions.

It should be acknowledged that, given travel restrictions due to COVID-19, it was not possible to undertake a site visit. As part of IFC’s previous investments with Soufflet starting in 2011, all operations under this investment were visited, except for Bulgaria. Following the lifting of travel restrictions, IFC will visit Soufflet operations in Bulgaria as part of the regular portfolio monitoring activities to confirm the appraisal findings as identified in this Environmental and Social Review Summary (ESRS) and, as needed, will update the ESRS and the E&S Action Plan (ESAP), accordingly.

The company’s E&S performance is satisfactory and aligned with IFC Performance Standards since the previous investment (#38083) in 2016. This investment matured in October 2020.

IFC’s appraisal used the IFC’s Global Map of Environmental & Social Risk in Agro-commodity Production, the Integrated Biodiversity Assessment Tool (IBAT) for initial high-level biodiversity risk screening of the Soufflet grain supply chain, the Global Forest Change (GFC) for identifying natural habitat conversion in the sourcing areas, and IFC’s Gender-Based Violence (GBV) risk screening tool to screen for GBV risk in the five ECA countries and at the project level. Applicable WBG EHS Guidelines include the General and sector-specific (Food and Beverage Processing) ones.

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

Stakeholder Engagement

Broad Community Support

Environmental & Social Action Plan