The company leases premises for the operations, as such PS5: Land Acquisition and Involuntary Resettlement is considered to be not applicable.

No direct primary production of living natural resources is involved in the sub-projects and there is no material risk of significant conversion of natural and/or critical habitats and thus PS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources is also considered not to be applicable. Also, the type of risks and impacts envisaged in PS7 (Indigenous Peoples) and PS8 (Cultural Heritage) are also not considered applicable.

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

 This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability (2012) as the potential adverse E&S risks and impacts of this project are considered few in number, and potentially readily mitigated allied with implementation of good international industry practice. The key environmental & social (E&S) issues and risks associated with this project include: the company’s E&S management capacity (including identification and management of the operations, and establishing new operations (e.g. new fulfilment centres), labor and working conditions, occupational health and safety (OHS), and stakeholder engagement.                                                  

 Environmental and Social Assessment and Management System. The company has not yet developed a full documented E&S management system (ESMS) that systematically organizes the approach and IFC PS requirements with respect to E&S management. Therefore, as part of ESAP #1, the company will be required to develop an ESMS to be applied to its operations and provide sufficient management capacity and training for its implementation.

The ESMS will incorporate the following elements: (i) policy; (ii) identification of risks and impacts; (iii) management programs; (iv) organizational capacity and competency; (v) emergency preparedness and response; (vi) stakeholder engagement; and (vii) monitoring and review.

Organizational Capacity and Competency. The company has not yet nominated official roles for E&S management.  Within the ESMS to be developed per ESAP #1, the company will establish its E&S organization and will formalize the E&S organizational structure. This will include specific personnel, including management representative(s). Sufficient management support and human and financial resources will be provided on an ongoing basis to achieve effective and continuous E&S performance. 

Emergency Preparedness and Response. Currently the company has not yet developed formal plans and procedures relating to emergency preparedness and response.  As part of ESAP #2, the company will develop emergency response plans in place, and will provide equipment and facilities for emergency response (including firefighting), including procedures for incident investigation. This should include fire drills, and that the fire safety systems are checked (and tested) on a regular basis appropriately by qualified parties.

Monitoring and Review. There are not currently existing processes for monitoring and review of the operations with regular reports to the senior management on EHS aspects. As part of ESAP #1 these should be developed and formally incorporated into the ESMS to monitor and measure the effectiveness of the management programs, as well as compliance with any related legal and/or contractual obligations and regulatory requirements.                                                    

 Working Conditions and Management of Worker Relationship. As of December 2021, the company employs a total of 921 employees across its operations in the Philippines of which 708 are male and 213 are female.

Human Resources Policies and Procedures. The company has developed some HR policies and procedures relating to its own operations and workforce; and is committed to creating a safe and inclusive workplace culture.  There is a need for the company to update its existing HR policies and procedures and develop processes in line with local legislation and IFC PS2 requirements  as captured under ESAP #3.

Workers’ Organization. According to the company management, the company respects the freedom of association and does not prevent its employees from forming the trade unions; but has reported that currently there are no unionized employees as initiatives are being developed to underpin good employer/employee relationship, including an employee-initiated Employee Welfare Committee . The Philippines have ratified ILO conventions relation to freedom of association and collective bargaining. 

Grievance Mechanism. The company has not yet developed a formal internal grievance mechanism.  As captured under ESAP #3, the company will develop and implement a formal internal grievance mechanism, which will also allow for anonymous complaints to be raised and addressed, whose scope will be extended to third party workers (and be communicated to workers).  The HR policy documents will also incorporate a formal anti-harassment policy.

Occupational Health and Safety. The company has not formalized policies and procedures to cover safety programs, including those for contractors for operation of fulfilment centers and distribution.  Therefore, as part of ESAP #1, under the ESMS there will be a need to develop occupational health & safety procedures for the operations including (i) identification of potential hazards to workers; (ii) provision of preventive and protective measures, including modification, substitution, or elimination of hazardous conditions or substances; (iii) training of workers; (iv) documentation and reporting of occupational accidents, diseases, and incidents.

Workers Engaged by Third Parties. The company uses contractors for the operations, including for distribution.  As part of ESAP #1, contractor E&S management procedures will be incorporated into the ESMS, including the oversight of labor and working conditions for workers.                                                  

Resource Efficiency. The company is not a significant user of energy and water use currently, or generator of wastewater. However, this aspect should be considered under the ESMS, per ESAP#1

GHG Emissions. The company is not a significant user of energy or emitter of GHG emissions, and total annual GHG emission is expected to be below 25.000 tonne carbon dioxide equivalent per year.

Solid Waste Management. The company is not currently a significant generator of waste with limited waste being produced from its operations, however, should be considered under the ESMS per ESAP#1.

Hazardous Materials. During the operations there are limited hazardous materials present and used by the company, such as cleaning and maintenance chemicals, however, this aspect should be considered under the ESMS per ESAP#1.                                                   

 Community Health and Safety. The company uses third party logistics companies for distribution.  Under ESAP #1 the company will develop procedures for third party logistics providers, including vehicle and driver safety, driver requirements and route planning.  Given the nature of the fulfilment centres, the main community health & safety issues are expected to be in relation to road transport and as such are captured above. 

Security. The company uses third party security providers for sites that it operates who are expected to adhere to the requirements in the service agreement.  The company will review and formalize requirements for third-party security considered, which will be captured under the ESMS per ESAP#1.  The company reports that there have been no known past instances of conflict with workers and neighbourhood community members involving company security personnel.