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

  This is a category B project, according to IFC’s Policy on Environmental and Social Sustainability.

Key E&S issues and risks associated with the proposed investment are expected to include:

-          the company's management systems to assess, manage and monitor E&S risks and impacts from its activities, as well as those related to the supply chains operations;

-          consistent management of labor and working conditions and occupational health and safety (OHS) policies and practices across the operation;

-          resource efficiency and management of waste,

-          impacts on nearby community health and safety and;

the company's stakeholder engagement activities related to E&S aspects.

  Policy

Tembici’s has developed corporate procedures which includes a code of conduct, OHS procedures, occupational risk management procedures, and waste management procedures but the company does not have an E&S policy. As per ESAP item #1, the company will develop an environmental and social management system (ESMS), in line with IFC PS requirements, that includes a corporate E&S policy defining the environmental and social objectives and specifying that the business activities to comply with the applicable laws and regulations of the countries where Tembici operates.

Identification of Risks and Impacts

Tembici does not have a procedure to identify and assess risk applicable to its operations. As part of the ESMS, (ESAP item #1), Tembici will develop a risk assessment procedure related to current Tembici’s operations and future expansions. The procedure will include the methodology for the assessment of E&S risks and impacts to be undertaken to comply with national regulations and IFC Performance Standards and facilitate the application of mitigation measures / a corrective actions plan, as applicable.

Tembici’s due diligence for merges and acquisitions (M&A) of other platforms  includes the review of financial, compliance, legal and human resources issues, among others. As part of the ESMS, (ESAP item #1) Tembici will enhance its M&A procedure to include E&S aspects (e.g., safety records, gender based violence (GBV), harassment, child protection, labor and working conditions) in the due diligence process, in line with the IFC’s PSs requirements. The head of strategy and corporate development will be responsible for the development and implementation of the procedure.

Operational Capacity and Competency

The company’s organizational capacity and competency is commeasured to the project’s level of risk.

Tembici has a dedicated ESG specialist, who is supported by a team, consisted of human resources (HR), safety, procurement, and strategy. ESG team      reports directly to the Chief Impact     Officer. Tembici is in the process of obtaining an international certification (B-corp label) which assesses ESG practices of the company, which is expected to be achieved within 2022.

Emergency Preparedness and Response

Tembici does not have an emergency preparedness and response plan but organize emergency drills at locations in Brazil. As part of the ESMS (ESAP item #1), the company will develop an emergency preparedness and response plan in line with the IFC’s PSs requirements and will be updated of country in line with its laws and regulation.                         

       Tembici has 1,040 workers, 980 directly employed and 61 employed by third party companies. Among the direct workers, 30% are women. 30% of the managerial and 29% of director positions are occupied by women. To increase the representation of women and other priority groups, Tembici has a Diversity and Inclusion (D&I) committee formed by volunteer employees engaged in the agenda. In addition, they have goals to increase D&I in the company's scorecard (ultimately affecting bonuses).

Human resources Policies and Procedures

Tembici does not have a HR policy but complies with labor laws and regulation of the host country. As per ESAP item #2. The company will develop a corporate HR policy in line with IFC’s PS2 requirements including a diversity and inclusion strategy.

Working Conditions and Terms of Employment

HR procedures covers extra working hours, salaries,  compensation, disciplinary measures against discrimination, anti-harassment (race, gender, ideas, sexual and moral, generally in line with IFC PSs.

Worker’s Organizations

Tembici’s workers are members of nine external unions in Brazil and has signed Collective Bargaining Agreement (CBA) in Brazil. According to Tembici’s management, host countries’ labor laws provide freedom of association for all workers, the right to bargain collectively, and the right to strike. Tembici prohibits all kind of discrimination practices including discrimination as a result of union affiliation.

Non-discrimination and equal opportunity

Tembici procedures, through its Code of Conduct, includes provision on non-discrimination and equal opportunities as well as against slavery, human trafficking, and harassment.

Labor Grievance Mechanism

Tembici has a grievance mechanism accessible to all workers, included those contracted by third party companies. The procedure defines the process to submit and received grievance, how they are classified and investigated in a timely manner. It describes the resolution process and the penalties applicable. The mechanism allows receiving anonymous grievances and is managed by an external specialized company.

Occupational Health and Safety

Tembici has a process to identify and mitigate occupational risks in line with Brazilian regulations and consistent with good international practices. Identified risks are mainly associated with the assembly of bicycles and includes risks such as use of chemicals used for cleaning and maintenance, and noise. Mitigation measures include monitoring of noise levels, the use of personal protective equipment, and training. As per ESAP item #3, the company will develop occupational risk assessment and mitigation plans for its offices and other facilities  including ergonomics, remote work, impacts of COVID-19 and psychosocial risk.

Workers engaged by third parties

Tembici does not have a policy on management of workers engaged by third party companies. The HR teams oversees the compliance of labor laws and regulations in workers engaged by third party companies. As part of the HR policies (ESAP item #2), the company will develop a policy on management workers engaged by third party companies.

Supply Chain

Tembici’s supply chain is mostly associated to acquiring bike parts that are than assembled in Tembici’s facility in Brazil. Currently bike parts are mostly sourced to the country through a Canadian company supplier. Tembici included in its procedures prohibition to suppliers to engage in child labor and forced labor practices. Tembici has implemented a questionnaire applicable to all suppliers to assess the compliance with its procedures. Suppliers are required to provide information on E&S practices, E&S responsibility, diversity, ethic, and anticorruption practices.                                            

 Tembici register its greenhouse gas (GHG) emissions related to its internal operations, offices, and assembly lines, as well as the GHG emissions avoided as a result of its business activities which allow earning carbon credits as part of external initiatives. GHG emissions  are  not expected to exceed 25.000 ton of CO2 equivalent per annum through the lifetime of the project.

Tembici has procedures for recovery and recycling of materials and parts resulting in 89% of waste is recycled. Batteries in electric bikes have a long life spam resulting in limited batteries wasted. At the end of life, batteries are collected by specialized companies to reuse and recycle batteries. Tembici has plans to reuse the batteries in its pickup points for energy storage.

The company has a      rainwater harvesting system in the warehouse located in Sao Paulo. Collected water is     reused for cleaning bikes.

                     Tembici does not have a procedure to assess E&S risks associated to its facilities that can potentially impacts the community. Moving forward, as part of the ESMS, (ESAP item #1), Tembici will develop a written risk assessment procedure to current Tembici’s operations and future expansions.

Security Personnel

Tembici has unarmed security personnel at pickup points but does not have a specific policy to manage security personnel. As per ESAP item #4, the company will develop a procedure to manage security forces, including a code of conduct, prohibition to use firearms, and providing training to security workers.

Stakeholder Engagement

Tembici has an external grievance mechanism but does not have a corporate procedure to engage with stakeholders. Tembici clients, including food delivery workers, and the community can access the external grievance mechanism accessible through its website https://www.tembici.com.br/ and social media.

In March 2021, community complaint related to crowding of sidewalk and annoyance produced by food delivery partners was submitted to the CAO office by residents of a building in Sao Paulo, Brazil. Tembici has signed an agreement with the claimant and has changed                the location of the support hub away from the building. The support hub offers reception to delivery couriers, so that they can use the bathroom, heat their food, drink water, and charge their cell phones. Tembici has implemented programs, to improve     its communication with delivery workers and the community, which includes: i) developing an E&S questionnaire with optimal criteria for site selection (e.g.: avoiding residential neighborhoods, building with street retreat to allow optimize circulation); ii) improving the external grievance mechanism channels; and iii) “girando ideias” program targeting discussions between food delivery workers on good practices and training. Moving forward, as part of the ESMS, (ESAP item #1), Tembici will develop an ongoing stakeholder engagement plan focused on the company expansion plan into new cities and countries.