While all Performance Standards are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards

PS 1 - Assessment and Management of Environmental and Social Risks and Impacts
PS 2 - Labor and Working Conditions
PS 3 - Resource Efficiency and Pollution Prevention
PS 4 - Community Health, Safety and Security
PS 6 - Biodiversity Conservation and Sustainable Management of Living Natural Resources

This is a Category B project according to IFC's Policy on Environment and Social Sustainability (2012). Based on information reviewed by IFC, project actual and potential E&S impacts are mainly site specific, largely reversible and can readily be addressed through existing mitigation measures and good international industry practices (GIIP). The main E&S risks in the supply chain, especially on labor, OHS and biodiversity, can be managed by effective supply chain risk management systems at the Carrinho Agri (for local sourcing) and Manty (for imports). Other key E&S issues and risks associated with the project include adequacy of the E&S impact assessment (ESIAs) for the new finished goods storage warehouse; E&S management systems at Carrinho Group, Carrinho Industria, Carrinho Comercio and the Luanda Kitchen; management of labor and working conditions including grievance management, retrenchment, child and forced labor and OHS among direct and contracted workers in the above Carrinho Subsidiaries; management of fire and explosion risks at the CIC, transport safety management and security risk management; and stakeholder engagement.

IFC’s appraisal considered the environmental and social management planning process and documentation for the Project and gaps, if any, between these and IFC’s requirements. Where necessary, corrective measures, intended to close these gaps within a reasonable period of time, are summarized in the paragraphs that follow and (if applicable) in an agreed Environmental and Social Action Plan (ESAP). Through implementation of these measures, the Project is expected to be designed and operated in accordance with Performance Standards objectives.

PS 1: Assessment and Management of Environmental and Social Risks and Impacts

Environmental and Social Assessment and Management System:

Carrinho Group E&S risk management is guided by corporate policies covering Occupational Health and Safety (OHS), Environmental Sustainability, Quality and Food Safety and an OHS Manual that sets expectations for subsidiaries. In these policies, the Carrinho Group commits to meeting legal compliance requirements, achieving global standards in E&S (including IFC PS), quality and food safety risk management, sustaining effective stakeholder engagement and ensuring continual improvement. The policies suit this scale of operations and are aligned with IFC PS, however, the procedures still have gaps and will be addressed as highlighted below. Carrinho Industria, the food processing subsidiary, has adopted these policies, developed an integrated quality and food safety management system and obtained ISO 9001 (Quality Management System) and FSSC 22000 (Food Safety Management System) certifications. Carrinho Comercio’s E&S management system is still under development. To strengthen its ESMS and ensure consistency across subsidiaries, Carrinho Group will (i) develop and roll out across its subsidiaries a Group E&S impact assessment and monitoring procedure for all new projects and ongoing E&S performance monitoring in the Group, as well as Group-level guidelines on air quality management, hazardous materials management, road transport safety management, stakeholder engagement, security risk management and a GHG emissions reduction program aligned with IFC PS requirements; (ii) Carrinho Industria will develop and implement a wastewater and effluent management procedure and noise management and monitoring procedure, and update the integrated pest management procedure for implementation at the CIC in compliance with IFC PS; (iii) Carrinho Comercio will adopt and implement the CIC E&S procedures to cover their commercial operation including goods storage warehouse; and (iii) Luanda Kitchen will adopt and implement Group E&S policies and procedures as well as implement the quality and food safety management systems (including the integrated pest management procedures) of the operational LCC kitchen upon commissioning (ESAP #1).

Identification of Risks and Impacts:

Carrinho Group complies with relevant Angolan E&S national laws and permitting requirements in the E&S risk and impact identification and assessments. An Environmental and Social Impact Assessment (ESIA) for the Luanda Kitchen, currently under construction, was completed in 2023 and the Environmental and Social Management Plan ESMP) is being implemented in the ongoing construction phase. For operational E&S risk identification and assessments, Carrinho Industria relies on their quality, food safety and OHS risk management frameworks. However, the existent EHS risk management at the CIC and in the LCC kitchen is largely focused on indoor production lines and does not systematically cover material E&S topics relevant to their operations including ambient and point-source air emissions, effluents, fire and explosion, GBV/SEAH, spills and soil contamination, road transport and security; and there are no similar formal risk identification and assessment processes at Carrinho Comercio. In line with ESAP #1 above, the Carrinho Group E&S impact assessment and monitoring guidelines will be updated to standardize risk identification, assessment and monitoring across the three Carrinho Subsidiaries to cover the key E&S topics in line with IFC PS. In addition, the Company will (a) undertake ESIAs for the wheat mill extension and the new storage warehouse aligned with IFC PS requirements; and (b) conduct, at the CIC, a (i) process hazard analysis for wheat milling extension and grain handling, (ii) dust hazard analysis for combustible grain/flour dust; (iii) hazardous area classification for operational areas/activities with inherent combustible dust hazard, (iv) fire and explosion risk assessment (FERA) including consequence analysis commensurate with the major accident risk at the CIC. The risk assessments will be aligned with IFC PS requirements and good international industry practice (GIIP) (ESAP #2).

Management Programs:

Carrinho Industria implements operational programs and standard operating procedures (SOPs) at CIC including for Hazard Analysis and Critical Control Points (HACCP) assurance, equipment maintenance, food -safety, management of non-conformities, incident analysis, internal and external audits, waste and effluent management, and crisis management, among others. In addition, the main OHS management programs at the CIC include for Working at Height, Chemical Products, Confined Space, Machine Safety, Truck Loading and Unloading and a Permit to Work (PTW) system. At the Luanda Kitchen construction site, the construction ESMP is implemented as the primary risk management program. Carrinho Comercio will adopt and implement respective Group E&S and OHS management programs proportionate to their operations as required in ESAP #1 above. Similarly, Luanda Kitchen will adopt and implement the quality and food safety programs currently implemented at LCC kitchen including the Group E&S and OHS management procedures.

Organizational Capacity and Competency:

Carrinho Group Board of Directors has a Risk Committee that sets the corporate goals and reviews material E&S issues when raised. The Health and Safety Director and Industrial Quality Director are charged with developing the overall E&S, quality and food safety guidelines and overseeing their implementation across the Carrinho subsidiaries. Each of the three subsidiaries has a CEO with overall accountability for E&S performance. At the CIC, Carrinho Industria, Production Managers are accountable for E&S performance within their operational lines and are supported by health, safety, and environment (HSE) and quality managers and quality supervisors. The HSE and quality staff supervise implementation of HSE programs and conduct worker induction and training in accordance with the annual training calendars. Carrinho Comercio currently lacks dedicated E&S capacity. Carrinho Comercio will recruit a competent E&S officer to lead the implementation of E&S management system. Carrinho Group will recruit competent HSE and quality managers for the Luanda Kitchen who will be in place prior to commencement of operations (ESAP #3).

Emergency Preparedness and Response:

Carrinho Industria has developed a Crisis Management Plan for the CIC. The plan defines the crisis management team, identification of crises, crisis analysis, communication, simulation requirements and training requirement. The CIC has trained and certified firefighters and fire extinguishers are deployed and inspected regularly. To strengthen PS1 alignment, Carrinho Industria will update and implement the Crisis Management Plan to include: a detailed procedure for scenario-based emergency and crisis risk assessment; a detailed description of credible emergency scenarios relevant to its operations, including climate-induced crises (e.g., floods and heat stress), fire and explosion, medical emergencies. The updated plan will specify: a stepwise procedure for emergency and crisis planning, evacuation, communication and response; clear roles and responsibilities and an escalation protocol including protocol for internal notifications and external communications with emergency services, regulators, healthcare facilities and families of affected persons; detailed training requirements and periodicity; and detailed planning, monitoring and reporting requirements on mock drills. Carrinho Comercio and the Luanda Kitchen will develop and implement emergency preparedness and response plans (EPRPs) proportionate to the scope of their operations; including logistics and distribution activities and kitchen operations and integrate escalation arrangements into the Group Crisis Management Plan (ESAP #4).

Supply Chain:

The wheat flour mill and the finished goods storage warehouse are both linked to Carrinho Group’s agri-commodity supply chain. The wheat processed in the CIC wheat mills is imported; and soybean, sunflower and maize, which also form part of the raw materials for the foods products to be stored in the new goods storage warehouse, are sourced both locally from outgrower farmers and imported. Carrinho Group has a Responsible Sourcing Standard where the Carrinho Group commits to identify, assess and manage E&S risks in the agro-commodity supply chains. The Standard has framework requirements for direct suppliers and primary producers (called “origins”) to manage E&S risks in their supply chains and report to the Company. Further, Carrinho Group has a Supplier Code of Conduct that entails the Carrinho Group’s commitments to embedding E&S and human rights aspects into their sourcing processes.

Imports: Carrinho Industria, through Manty (a company related to Carrinho Group), imports wheat and rice from international markets through a shortlisted group of suppliers. Manty has developed a Supplier Selection and Evaluation Procedure, used for screening suppliers; and a Product Traceability Procedure that traces the product movements from supplier to customer. Neither of these procedures include requirements for the supply chain E&S risk assurance.

Local supply: Carrinho Agri operates an outgrower maize, rice and soybean production scheme and provides the commodities to Carrinho Industria for processing, contributing 50% of the agro-commodity supply needs. Carrinho Agri retains an outgrower contracts database of over 116,000 smallholder and about 64 large scale farmers spread across eight provinces in Angola; from which the required numbers are determined by seasonal needs. From IFC agri-commodity E&S risk screening, the regions/provinces in Angola where these maize farms are located have inherent risks related to unfair labor practices (child labor, forced labor), OHS, habitat conversion and encroachment into protected areas or areas with high biodiversity value. Carrinho Agri implements a digital agricultural management application embedded into the tablets and smartphones used by their staff. This application is designed to support new farm onboarding and farmer information documentation, recording of all inputs and agronomical support to farmers by the field teams, monitoring management of productivity up to each individual farm, and processing of primary requisitions by field teams. However, there are no supply chain mapping and supplier E&S risk assessment, monitoring and management processes and no formal traceability and verification system in place to monitor the E&S performance of the supply chain.

To adequately manage supply chain E&S risk assessment, OHS, labor and biodiversity related issues and mitigate related risks in compliance with PS1, PS2 and PS6 supply chain requirements, Carrinho Group will (i) update their supply chain management system (SCMS) which currently consists of a responsible sourcing standard and supplier code, to include a procedure for periodic monitoring and reporting of its supply chain E&S risks and initiatives to senior management consistent with IFC PS requirements; (ii) recruit competent E&S officers in each region to implement the management system; (iii) implement a supply chain E&S training program for its field staff to build in-house capacity and upskill them to support farmer capacity enhancement on E&S requirements; (iv) conduct supply chain mapping including supplier E&S risk assessment of current active contracted outgrower farmers and implement corrective actions, including exclusion of farms that breach national environmental and social (E&S) legislation and fit the SCMS exclusion criteria and are unable to comply (ESAP #5).

Monitoring and Review:

In practice, daily, weekly, monthly and annual audits are conducted at the CIC operations, mainly on quality, food safety and general OHS aspects. Once audit data is consolidated, the Group H&S and Industrial Quality Directors maintain an EHS Register comprising the materials business risks which are discussed at the Carrinho Board meetings. The Carrinho Group E&S risk E&S impact assessment and monitoring procedure to be developed per ESAP #1 will include a comprehensive set of EHS key performance indicators (KPIs) to be reported to track E&S performance, reporting frequency, measures for collection and collation of data on E&S metrics (e.g., greenhouse gas emissions, water and energy usage, OHS incidents, GBV/SEAH, grievances and other labor issues) and requirements for internal or external audits to check compliance and the effectiveness of the E&S management systems – including in the agro-commodity supply chain. Once the procedure is rolled out, Carrinho Industria will expand the scope of monitoring and audits to include core E&S aspects within and beyond the activities at the CIC. Similarly, Carrinho Comercio the Luanda Kitchen will include these E&S monitoring and reporting parameters in their ESMSs.


PS 2: Labor and Working Conditions

At the time of appraisal, Carrinho Group retained over 6,000 workers across different subsidiaries. Carrinho Industria employs about 1,300 male and 390 female workers while Carrinho Comercio employs about 1,000 male and 560 female workers. Contracted workers’ numbers vary with seasons and production changes.

Human Resources Policies and Procedures:

Carrinho’s Group has established and implements the Human Resource Policy, Recruitment and Selection Policy, Code of Ethics and Conduct, Human Rights Policy and Attendance Manual and Biometric Rules to manage human resources across all subsidiaries. These policies are applicable to all workers, including those employed by third parties and are aligned with Angolan law and IFC PS2 requirements.

Working Conditions and Terms of Employment:

Workers at Carrinho Group have signed contracts and receive monthly pay slips providing clear details on roles, income, overtime and statutory deductions. Workplace rules and working conditions are outlined in the Attendance Manual and Biometric Rules and are governed by national labour legislation and company requirements and consistent with PS2.

Non-discrimination and Equal Opportunity:

Discrimination is specifically discouraged in Carrinho’s Human Resource Policy and Code of Ethics and Conduct Policy. Recruitment, training, and remuneration follow national labour laws and internal company policies and overseen by internal management hierarchy. External recruitment, where used, complies with Carrinho’s values and policies.

Grievance Mechanism:

Carrinho Allegations and Whistleblower Protection Policy provide a mechanism to report activities and/or actions which may go against company policies. It is accessible to both internal and external parties. This policy covers all grievances, general or anonymous. Going forward, Carrinho Group will (a) develop a robust corporate grievance redress mechanism that complies with IFC PS2 and with clear provisions to (i) receive and register grievances from workers, including contractor and supply chain workers; (ii) screen and assess the grievances; (iii) provide, track, and document responses; (iv) provide feedback to concerned parties on grievance mechanism results; (v) monitor implementation and effectiveness of the mechanism through set KPIs; and, (vi) include separate channels for confidential and anonymous complaints and for receiving and managing grievances related to GBV/SEAH; and (b) roll out the mechanism and conduct sensitization sessions with all workers, including contractor and supply chain workers on the grievance mechanism (ESAP #6).

Workers’ Organization

About 500 workers at Carrinho Group are unionized, including 144 from Carrinho Industria. Carrinho Group has signed a Collective Bargaining Agreement in line with Angolan law and respect workers’ rights to form, join, and participate in workers’ organizations and to bargain collectively, consistent with national law.

Retrenchment:

Due to the seasonality of Carrinho Group’s operations, periodic workforce adjustments may occur across the different business units. Retrenchments are currently handled in accordance with Angolan labor laws. To strengthen compliance with IFC PS2, Carrinho Group will develop and implement a Retrenchment Policy that applies across subsidiaries and sets out a fair and transparent process for workforce reductions, including consultation and communication arrangements, objective and non-discriminatory selection criteria, timely provision of statutory severance benefits and access to workers’ grievance mechanism (ESAP #7).

Protecting the Workforce:

All employees and contractors are above 18 years old and are required to provide government-issued identification prior to engagement. This demonstrates the Group’s commitment to ensure that no child labour is present in its direct operations. Contracts are voluntary so there is no forced labor among the direct workers. However, for the supply chain workers, the supply chain E&S risk management system (SCMS) in ESAP #5 above will include clear requirements for supplier child labor and forced labor screening and periodic monitoring in compliance with IFC PS2 requirements.

Occupational Health and Safety:

The Project’s main OHS risks relate to machinery and workplace vehicle movement / mobile equipment; manual handling and ergonomics; and worker exposure to chemicals, dust, noise and heat. In addition, there are process safety risks which primarily relate to combustible dust explosion and fire. The Group OHS Manual sets the risk management approach, covering leadership commitment, behaviour-based safety, systematic risk assessment, operational controls (12 Safety Basics and LOTO), OHS training, contractor OHS management, incident investigation, and performance monitoring. At Group level and across subsidiaries, OHS risk assessments have been completed for high-risk operations. Direct workers and contractors receive training on these high-risk activities and existent operational control measures including use of personal protective equipment (PPE) and safe system of work as part of induction and periodic refresher OHS training. Some of the training courses provided include Permit-to-Work (PTW) and LOTO; working at height/fall protection; confined space entry; forklift/mobile equipment safety; chemical safety; fire and explosion awareness (combustible dust); first aid and emergency response; incident reporting and investigation.

The Permit-To-Work system is documented and applied to high-risk activities. Carrinho Industria conducts non-discriminatory worker health checks upon recruitment, and periodic health surveillance. The OHS requirements apply to both direct workers as well as contractors. Carrinho Group has an incident reporting and investigation system, and these are collated and overseen by the Health and Safety Director. The current (2025) Lost Time Injury Frequency Rate (LTIFR) at the Carrinho Group business is 1.4 which is aligned with the US Bureau of Labor Statistics benchmark for the grain and oilseed milling industry (1.1). The main incidents reported are cuts and bruises and vehicle collisions. However, CIC operations reported an LTIFR above this benchmark. No fatality has been reported in the business in the last three years. To strengthen OHS performance, Carrinho Industria will engage an external OHS expert to conduct formal review of the OHS incidents at the CIC and identify their root causes using internationally recognized tools and develop a comprehensive corrective action plan, to be implemented within the set timeframes (ESAP #8).

The CIC includes grain storage and handling systems where combustible dust can create explosion and fire risk. Carrinho Industria will address process safety controls for these high consequence hazards through the CIC fire and explosion risk assessment, dust hazard analysis and implement a risk-based mitigation program (ESAP #2) and the updated emergency preparedness and response arrangements for fire and explosion scenarios (ESAP #4)

Workers Engaged by Third Parties

Carrinho Group subsidiaries periodically engage contractors or outsources workers for various activities, including construction and equipment installation, provision of equipment maintenance services, logistics and transportation, security and access control, cleaning and waste management, canteen management and other administrative support work. Most of the contracted companies have own workers for their respective tasks, who are exposed to the same risks as Carrinho Group workers. Although Carrinho Group procedures, including OHS, HR, quality and food safety procedures are expected to cover third-party workers, there are no formal structures to enforce and monitor compliance, especially for seasonal and short-term contractors. Going forward, Carrinho Group will develop a Group Contractor’s HSE Management Procedure, including minimum requirements on labor and OHS. The procedure will also set minimum provisions to be embedded into contracts with third parties – including provisions related to fair terms of employment, non-discrimination and equal opportunity, freedom of association, prohibition of forced and child labor, occupational health and safety, access to fair grievance mechanisms, and reporting. Once developed, Carrinho Industria and Carrinho Comercio will update existing contracts to ensure that these requirements are formally incorporated into the contractual arrangements with the current active contractors and ensure the provisions are communicated clearly to the contractor workers in languages they can understand (ESAP #9).

Supply Chain

As noted under PS1, the contextual supply chain E&S risks indicate that the risks of child labor are high in the country and particularly higher in smallholder agricultural settings. At present, no confirmed cases of child labor or forced labor have been identified within Carrinho’s operations. However, seasonal labor demand and limited progression of minors into higher education in agri-commodities sourcing regions may increase vulnerability to child labor on commercial farms. While the Carrinho Group Supplier Code of Conduct prohibits unfair labor and OHS practices, the current supplier contracting arrangements do not provide for verification, monitoring, or audit of child and forced labor risks. To strengthen the oversight and prevention of child and forced labor risks in its supply chain and align with IFC PS2 requirements, Carrinho Group will ensure that the E&S screening and its supply chain management system to be implemented under ESAP #5 includes: key requirements for prevention and management of child and forced labor risks, including procedures for verification of age of workers, incorporation of age-appropriate based OHS risk assessments and subsequent requirements for minors working in the farms, expansion of limitations on minors to include all dangerous tasks beyond chemical exposure and mechanisms for development of appropriate remediation measures; mechanisms for review and sensitization on restriction of movement, coercion and indebtedness as additional indicators of forced labor and related remediation measures. The SCMS will also include clear requirements for supplier screening on child labor and forced labour, supply chain worker OHS and grievance management, minimum traceability requirements and periodic monitoring in compliance with IFC PS requirements.


PS 3: Resources Efficiency and Pollution Prevention

Resource Efficiency:

The main energy and water consumption areas by the three subsidiaries include – industrial processes at the CIC (Carrinho Industria), the Luanda Kitchen (when operational), and goods distribution and road transport (Carrinho Comercio). CIC was designed and installed with energy-efficient processing equipment. Carrinho Industria currently utilizes in-built energy consumption dashboards to monitor water and energy consumption in the food processing lines; however, there is no formal monitoring for other external consumption activities within the CIC (e.g. offices, outdoor lighting, security offices, construction yards, truck waiting areas). Fuel consumption across the fleet is not formally tracked. To effectively monitor and manage the consumption of energy and water at these operations, the Group E&S risk assessment and monitoring procedure to be developed per ESAP #1 above will include appropriate measures for monitoring energy consumption, vehicle fuel consumption, water sources and consumption by each of the above subsidiaries; and establish baselines and intensity metrics (e.g., kWh/ton product; m³ water/ton product; liters diesel/vehicle km or liters/ton km) and set time bound targets informed by applicable WBG EHS Guidelines.

Air Emissions:

The main sources of ambient emissions (mainly Particulate Matter -PM- and fugitive dust) from the Project include loading/unloading of raw materials and products at CIC and the LCC kitchen, vehicles/trucks and other moving equipment use; while occasional stack emission comes from back-up diesel generators at the CIC and the LCC kitchen– 1.5MW capacity at each location. The three subsidiaries do not monitor ambient or stack air emissions currently. To ensure the risks related to air emissions are adequately managed in these areas, Carrinho Group will include an adequate program for monitoring ambient emissions (mainly PM) and stack emissions from the CIC operations in the Group air quality management procedure (per ESAP #1) in line with the WBG General EHS Guidelines for ambient air quality and emissions management; and the three subsidiaries will adopt and implement this procedure for their operations.

Greenhouse Gas (GHG) Emissions:

The main GHG sources in the project are food processing operations at the CIC, LCC kitchen operations and the vehicle fleet. Currently, Carrinho Group does not estimate GHG emissions from their operations. The IFC- estimated annual GHG emissions from these operations is above 25,000tCO2e/yr. Carrinho Group will develop and implement a GHG emissions management and reduction program that sets a baseline, identifies feasible reduction measures, and establishes targets and reporting under ESAP #1 , which will be adopted and implemented by Carrinho Industria, Carrinho Comercio and Carrinho Investimento for their respective operations.

Ambient Noise:

Key CIC activities, particularly raw material offloading and associated vehicle movement, may generate periodic noise at the site boundary that could affect external receptors and the noise impacts may increase in future as the CIC capacity increases. The processing equipment is designed with noise-abating technologies, but noise monitoring is currently not undertaken. Therefore, under ESAP #1, Carrinho Industria will develop and implement a noise management and monitoring procedure that prioritizes noise control at source and defines (i) monitoring locations (including the site boundary and nearest sensitive receptors, as applicable), (ii) monitoring frequency covering representative operating conditions, including offloading peaks, and (iii) evaluation against the applicable limits in line with the relevant WBG General EHS Guidelines (Noise Level Guidelines), with corrective actions and periodic review as CIC throughput increases.


Wastes and Wastewater Management:

Various waste streams are produced from the operations of the three Carrinho subsidiaries, including e-waste, general paper and plastic wastes, hulls, waste grains and chaff from the CIC; waste food-related materials, used cooking oils, grease trap waste, cleaning detergents, and broken kitchen equipment in the LCC kitchen; and truck/equipment parts, oils/grease and other contaminated materials from the fleet operations. All three subsidiaries have waste management procedures, and the waste is segregated, collected and reused where possible, while unusable portions are processed by a licensed service provider. They keep records of waste and have manifest templates completed by the service providers. Solid cakes from grain processing are collected and valorized, mainly by selling to feed and fertilizer formulators. The solid waste management practice at the CIC, LCC kitchen and Carrinho Comercio’s distribution operations is generally aligned with IFC PS requirements based on current segregation practices, recordkeeping, and use of licensed service providers. Process wastewater - mainly effluents containing starches, sugars, proteins and suspended solids, are generated during food processing at the CIC; alongside wastewater from factory cleaning and sanitary facilities. These wastewaters are directed to an onsite wastewater treatment plant, treated and reused for plant irrigation and dust management. No effluent test results were shared with IFC. Going forward, due to the typically high biochemical and chemical oxygen demand (BOD and COD) resulting from organic wastes entering into the wastewater stream, and from the use of chemicals and detergents in various areas within the CIC processing lines, Carrinho Industria will develop and implement a wastewater and effluent management procedure in line with IFC PS, set effluent quality limits to meet Angolan law and Section 1.3 of the WBG General EHS Guidelines and to establish a schedule for effluent sampling and testing in compliance with these standards, per ESAP #1.


Hazardous Materials Management:

The main hazardous materials at CIC include – pest control chemicals, cleaning agents, lubricants and stored fuel. At the LCC kitchen (at the upcoming Luanda kitchen), hazardous materials consist of cleaning agents, cooking oils, greasy materials, pesticides and compressed gases. The main hazardous materials used in the transport operations are fuel, oils and grease. Carrinho Industria and LCC kitchen have established and implemented hazardous materials management procedures. At both sites (CIC and the kitchen), these materials are appropriately identified, labelled and stored in designated areas. Carrinho Comercio will develop and implement a hazardous materials management procedure that is fit for their road transport operations activities, per ESAP #1.

Pesticide Use and Management:

Pesticides are used at the CIC to prevent vermin attacks on the raw materials and finished products; and at the LCC kitchen to facilitate food safety and hygiene. Carrinho Industria and the LCC kitchen have integrated pest management (IPM) procedures and regulate the types of pesticides, equipment used and the application process. Currently, each contracted fumigation service provider is required to procure pesticides from their own sources but ensure they meet Angolan legal requirements, but there is no formal monitoring protocol. Carrinho Industria will update the IPM procedures to prohibit WHO Class Ia/Ib pesticides unless appropriate controls are demonstrated, and to discontinue products that do not meet these requirements; the same requirements will apply to the Luanda Kitchen upon commissioning, per ESAP #1.


PS 4: Community Health, Safety and Security

Community Health and Safety:

Fire and explosion risks: The CIC operated by Carrinho Industria includes over 12 grain storage silos with a total capacity of circa 120,000 tons; and back-up diesel storage tanks with a total capacity of 240m3. Given the proximity of the CIC to other industrial facilities and residential areas, these assets present potential fire and explosion hazards with possible off site consequences. Temperature and pressure at the grain silos are digitally monitored and controlled via automated pressure relief systems. There are fire suppression systems at the diesel storage areas and across the production areas; and at CIC there are procedures for explosive atmospheres (ATEX) including fire and explosion prevention procedures. As required under ESAP #2, Carrinho Industria will engage a competent process safety consultant to conduct a fire and explosion risk assessment for the CIC and develop a suitable fire and explosion risk management program to address any identified gaps. In addition, as required under ESAP #4, Carrinho Industria will update the Crisis Management Plan to cover credible emergency scenarios including emergency response arrangements, drills, notification to neighbouring facilities and residents and monitoring requirements informed by the outcomes of the ESAP #2 assessment.

Road transport: Carrinho Group’s logistics, distribution, and catering activities involve frequent road movements, creating community safety risks. There are over 300 Carrinho Group trucks on the road daily, across the country. Carrinho Industria oversees raw materials transportation to the CIC, Carrinho Comercio controls product transportation across the country and LCC controls food delivery to clients. Through the logistics subsidiary (LCC Logistics), Carrinho Group has developed vehicle and driver safety assurance programs, including vehicle inspection, maintenance procedures and checklists; and driver competency management and journey management measures. All Carrinho vehicles are tracked through In-Vehicle Management Systems. These assurance measures, together with measures to address the risks of GBV/SEAH related to transport workers and/or truck drivers who interact with local communities, will be integrated into a formal Group road transport management procedure (per ESAP #1) to be implemented by Carrinho Comercio and Carrinho Catering for the Luanda central kitchen. Complaints related to GBV/SEAH will be addressed through the external grievance redress mechanisms to be developed as part of the SEP. Additionally, Carrinho Group will develop and implement a GBV/SEAH training program for all road transport workers, including contracted transporters (ESAP #10).

Food Safety: The ISO-certified quality and food safety requirements are implemented and monitored at the CIC and the LCC kitchen. These same certification requirements will be applied in the new Luanda Kitchen upon commissioning.

Security Personnel:

Each Carrinho subsidiary independently contracts third-party security service providers. The contracts require unarmed security personnel covering two shifts over a 24-hour shift basis and the contract conditions are primarily focused on safeguarding of the assets. As part of ESAP #1, Carrinho subsidiaries will develop and implement security risk management procedures aligned with PS4. The procedures will address approach to security risk assessments, hiring and training processes, security code of conduct, access control and crowd management, security equipment provision, site monitoring and surveillance, incident investigation and reporting protocols.

PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources

Carrinho Industria imports wheat, rice, soybean and maize from international markets. Wheat for milling is imported from Europe and Latin America, whilst rice is imported from Asia. Carrinho Industria also purchases maize, rice, sunflower and soybean locally through an outgrower program run by Carrinho Agri. Angola is a region of contextual risk for natural habitat conversion, with a loss of 5% of Angola’s forest cover recorded over the five years from 2020 to 2025, according to Global Forest Watch.

As part of the SCMS update (ESAP#1), Carrinho Group SA will update its corporate environmental sustainability policy to include a commitment to “no conversion of natural habitats” in alignment with its Responsible Sourcing Standard and will promulgate an updated supplier code of conduct to align its supply chain performance requirements with PS6. The Group Responsible Sourcing Standard and supplier code will be adopted and implemented by all subsidiaries including Carrinho Industria and Carrinho Agri. Carrinho Group will commit to achieve 100% compliance of its supply chain by 2028. For the local supply chain, Carrinho will develop a procedure for the assessment of habitat conversion risk in the supply chain and exclude high risk areas from future sourcing if significant natural habitat conversion cannot be halted. Carrinho will undertake a gap analysis of its field-level capacity to implement these procedures at the farm level and develop a corrective action plan to close gaps identified (ESAP#11).

The Carrinho Agri outgrower program includes over 116,000 smallholder and about 64 large scale farmers spread across eight provinces in Angola. Carrinho will identify a relevant, independently verified sustainable management certification for their agricultural operations and develop a time-bound plan to achieve such certification (ESAP #12).

Stakeholder Engagement

Carrinho Group has an Internal and External Communication Policy which entails the Group’s commitments to establishing and implementing structured, transparent, and continuous stakeholder engagement mechanisms that support environmental and social risk management, community health and safety, and effective communication with affected stakeholders and authorities; in line with IFC PS. Carrinho Industria has a Communications Plan that relates to engagement with customers, regulators, suppliers and other private stakeholders. To ensure effective and consistent implementation of the Group Policy, the Company will develop a Stakeholder Engagement Plan (SEP) fit for the entire operations covering processing, distribution and catering operations, and aligned with IFC PS 1. The SEP will include a grievance mechanism for external grievance management to (i) receive and register external communications and grievances from the public; (ii) screen and assess the issues raised and determine how to address them; (iii) track and document responses; (iv) provide feedback to stakeholders on grievance mechanism results; (v) monitor implementation and effectiveness through KPIs; and, (vi) separate channels for confidential and anonymous complaints and for receiving and managing grievances related to GBV/SEAH. All the subsidiaries will adopt and implement this SEP within their respective operations. (ESAP #12).

Contact Person: Samuel Candundo
Company Name: Carrinho SA
Email: samuel.candundo@carrinho-sa.com
Phone: +244 937728574

Broad Community Support is not applicable for this project.

S.no	Description	Anticipated Completion Date
1	a) Carrinho Group will develop a Group E&S impact assessment and monitoring procedure to be the primary guide for all new projects and ongoing E&S performance monitoring in the Carrinho Group, as well as air quality management, hazardous materials management, road transport safety management, stakeholder engagement, security risk management and a GHG emissions reduction program aligned with IFC PS requirements, to be adopted and implemented by all the three subsidiaries; b) Carrinho Industria will develop a wastewater and effluent management procedure and noise management and monitoring procedure, and update the integrated pest management procedure for implementation at the CIC in compliance with IFC PS; c) Carrinho Comercio will adopt the CIC E&S procedures to cover the operation of the goods storage warehouse and adopt the Carrinho Group E&S procedures to fit their whole commercial operations; and d) Carrinho Investimento will ensure the new Luanda Kitchen will adopt and implement Group E&S policies and procedures as well as implement the quality and food safety management systems (including the integrated pest management procedures) of the operational LCC kitchen upon commissioning.	03/31/2027
2	Carrinho Group will conduct:a) An IFC aligned ESIAs for (i) the wheat milling extension at CIC and (ii) the new finished goods warehouse; and b) At the CIC, a (i) process hazard analysis for wheat milling extension and grain handling, (ii) dust hazard analysis for combustible grain/flour dust; (iii) hazardous area classification for operational areas/activities with inherent combustible dust hazard, (iv) fire and explosion risk assessment (FERA) including consequence analysis commensurate with the major accident risk at the CIC. The risk assessments will be aligned with IFC PS requirements and GIIP.	06/30/2027
3	Carrinho Comercio and Luanda Kitchen to appoint competent E&S / HSE personnel and quality personnel, respectively, for respective operations.	03/31/2027
4	a) Carrinho Industria to update and implement the Crisis Management Plan for CIC; and b) Carrinho Comercio and Luanda Kitchen operations to develop EPRPs proportionate to the scope of their operations.	03/31/2027
5	Carrinho Group to:a) update the supply chain management system (SCMS) to include a procedure for periodic monitoring and reporting of its supply chain E&S risks and initiatives to senior management consistent with IFC PS requirements; b) recruit competent E&S officers in each region to implement the management system; c) implement a supply chain E&S training program for field staff to build in-house capacity and upskill them to support farmer capacity enhancement on E&S requirements; andd) conduct supply chain mapping including supplier E&S risk assessment of current active contracted outgrower farmers and implement corrective actions, including exclusion of farms that breach national environmental and social (E&S) legislation and fit the SCMS exclusion criteria and are unable to comply.	12/31/2027
6	Carrinho Group to:a) Develop a more robust corporate grievance redress mechanism that complies with IFC PS 2 and with clear provisions to (i) receive and register grievances from the workers, including contractor and supply chain workers; (ii) screen and assess the grievances; (iii) provide, track, and document responses; (iv) provide feedback to concerned parties on grievance mechanism results; (v) monitor implementation and effectiveness of the mechanism through set KPIs; and, (vi) include separate channels for confidential and anonymous complaints and for receiving and managing grievances related to GBV/SEAH; and b) Roll out the mechanism and conduct sensitization sessions with all workers, including contractor and supply chain workers on the mechanism.	08/31/2027
7	Develop a Retrenchment Policy aligned with IFC PS2.	03/31/2027
8	Carrinho Industria to engage an external OHS expert to conduct formal review of the OHS incidents at the CIC using internationally recognized tools and develop a corrective action plan, to be implemented within the set timeframes.	03/31/2027
9	a) Carrinho Group to develop a Group Contractor HSE Management Procedure b) Carrinho Industria and Carrinho Comercio to update existing contracts to ensure that these requirements are formally incorporated into the contractual arrangements with the current active contractors and c) Carrinho Industria and Carrinho Comercio to ensure the provisions are communicated clearly to the contractor workers in languages they can understand.	03/31/2027
10	Carrinho Group to develop and implement a GBV/SEAH training program for all road transport workers, including contracted transporters.	12/31/2027
11	Carrinho Group will:a) Update its corporate environmental sustainability policy to include a commitment to “no conversion of natural habitats” in alignment with its Responsible Sourcing Standard and will promulgate an updated supplier code of conduct to align its supply chain performance requirements with PS6. The Group Responsible Sourcing Standard and supplier code will be cascaded to all subsidiaries including Carrinho Industria and Carrinho Agri for implementation. Carrinho Group will commit to achieve 100% compliance of its supply chain by 2028.b) For the local supply chain, (i) develop a procedure for the assessment of habitat conversion risk in the supply chain, ii) exclude high risk areas from future sourcing if significant natural habitat conversion cannot be halted. Carrinho will (ii) undertake a gap analysis of its field-level capacity to implement these procedures, and (iv) develop a corrective action plan to close gaps identified.c) Carry out an external audit of its supply chain system and compliance with its commitments on an annual basis.	12/31/2027
12	Carrinho will identify a relevant, independently verified sustainable management certification for their agricultural operations and develop a time-bound plan to achieve such certification.	06/30/2028
13	Develop and implement a Carrinho Group Stakeholder Engagement Plans (“SEP”). Carrinho Industria, Carrinho Comercio Luanda Kitchen to adopt and implement the SEP.	03/31/2027