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

 This is a Category B project according to IFC's Policy on Environment and Social Sustainability (2012). Based on the information reviewed by IFC, the proposed investment will have limited adverse E&S impacts that are few, site-specific, largely reversible, and readily addressed through existing mitigation measures captured in the individual project Environmental and Social Impact Assessments (“ESIA”) and following Good International Industry Practices (“GIIP”). 

Key potential E&S risk and issues related to the eligible CAPEX subprojects include (i) CoJ’s management systems and staffing to manage E&S risks and impacts associated with the development and operations of eligible CAPEX subprojects, in line with IFC PSs and national legislation;  (ii) standardization of E&S processes across the numerous CoJ departments and municipal entities to consistently apply E&S assessments, monitoring and review processes aligned with IFC PSs, national requirements and GIIP;  (iii) assurance of fair, safe and healthy working conditions for direct employees and contracted workers including Occupational Health and Safety (“OHS”), and gender considerations; and (iv) adequate community engagement activities and grievance management related to impacts emanating from the sub-projects.

 Environmental and Social Policies and Management Systems:

The CoJ has an Environmental Sustainability Strategy and Action Plan (“ESSAP”), last updated in June 2020 and reviewed every 5 years. The ESSAP provides an overarching framework and acts as the guideline to the numerous (i.e., 876) existent policies, to inform decision-making on environmental sustainability planning and execution across all operations of the City. The ESSAP does not replace any single or collective policy but rather brings together key relevant policies, including the Growth and Development Strategy (“GDS”), the Integrated Development Plan (“IDP”), and the Sustainability Agenda, and includes a Monitoring and Evaluation (“M&E”) framework.

The ESSAP also lists internal departmental and sector-specific E&S policies, reaffirms the CoJ commitment to becoming a resilient, livable, and sustainable city, and plans for 11 focus areas, namely: water resource management, biodiversity conservation, open space planning, water services, climate change, air quality management, energy demand, waste management, infrastructure planning, strategic coordination and E&S impact management and compliance monitoring. The ESSAP is also an important governance tool that addresses key E&S and sustainability issues. 

CoJ shall employ a reputable consultant with proven experience to develop an ESMS Manual aligned with IFC’s Performance Standards to consolidate, streamline, and guide the operational aspects of the ESSAP and other associated key policies and strategies, into a set of standardized processes and practices directly related to the E&S assessment and management of eligible CAPEX-related subprojects (ESAP #1).

Identification of Risks and Impacts & Management Programs:

The identification of risks and impacts at the eligible subproject level is largely driven by the completion of an ESIA or Basic Assessment, as required under the National Environmental Management Act (“NEMA”). As per NEMA, any project potentially having a significant impact on the environment is subject to assessment, and subsequent authorization.  CAPEX projects requiring the completion of an ESIA, or Basic Assessment are progressed as part of CoJ’s feasibility staged approval process. An Environmental and Social Management Plan (“ESMP”) is developed as part of the ESIA and submitted with the ESIA for review and approval to the competent authority. An Environmental Approval (“EA”) is provided by the authorizing authority with a set of conditions to be met by the applicant or any person acting on behalf of the applicant (e.g., contractors, sub-contractors, service providers, etc.). As per the requirements of NEMA, the implementation of the ESMP is monitored and audited by the competent authorities. In addition to project specific ESIAs and ESMPs, CoJ also implements energy, water, air quality and integrated waste management plans for projects, that are aligned with the requirements of IFC PS1.

While all eligible sub-projects have an ESMP as a part of the ESIA or Basic Assessment process, the City does not have an overarching ESMP to ensure consistency management and mitigation across eligible subprojects. CoJ shall employ a reputable consultant with proven experience to develop an overarching E&S Management Procedure to guide contractors, sub-contractors, and service providers on E&S requirements to be followed in line with local legislation and IFC PSs (ESAP #2).

CoJ generally constructs projects on land owned by the City, or within existing reserves/servitudes. The project will not finance CAPEX subprojects resulting in any degree of involuntary physical and/or economic displacement.

E&S Organization Capacity:

The CoJ is comprised of 13 municipal entities (e.g., City Power, Metrobus, Social Housing, etc.) and 23 administrative departments. Each municipal entity is responsible for obtaining any required permits and to monitor E&S compliance for the projects that fall under their mandate. Every entity has dedicated Safety, Health, Environment and Quality (“SHEQ”) officer/s who undertake the required compliance checks.

While each municipal entity includes their own SHEQ resources, the overall management of E&S risks and impacts fall under EISD. EISD provides the City with an E&S oversight role, including assessing the feasibility and compliance of eligible CAPEX subprojects through a committee review considering economic outcome and project impacts and risks (e.g., E&S sensitivities, development constraint areas, land acquisition requirements, etc.).

EISD is also tasked with ensuring legislative compliance and authorization of City projects, and developing Citywide policies and procedures, that are largely guided by national regulatory requirements. Where necessary, EISD is tasked with reducing and managing the ecological footprint in the delivery of basic services and ensuring that effective environmental policies, strategies, regulations, and standards are implemented in the supply of such services. Where required, the City can enforce regulatory and compliance requirements through the Environmental Management Inspectorate.

The ESSAP recommends for the CoJ to develop a resource plan which outlines the resources required to implement the ESSAP. As per ESAP 1, CoJ shall define the necessary resources required to implement the updated ESMS Manual, including: (i) management commitment; (ii) required resources; (iii) roles and responsibilities; and (iv) training and competency.  

Emergency Preparedness and Response:

As per the requirements of the Disaster Management Act, CoJ, as a component of the IDP, has developed a Disaster Management Plan to coordinate and facilitate disaster risk reduction and disaster response efforts to prevalent disaster risks and hazards within the City. As custodians of the Disaster Management Plan, the City’s Disaster Management Centre, are mandated to provide guidance and direction for the effective implementation of disaster management by all departments and entities in the City, increase awareness and knowledge of disaster risk reduction and management methods and opportunities, and contribute to community resilience.

Monitoring and Review:

The M&E framework within the ESSAP identifies indicators and responsibilities for collating and reporting on key performance indicators (“KPIs”). Factors such as scale, ease of collation and analysis, and frequency of data collation are considered in the development of separate and specific plans which arise from this ESSAP.  The EISD will conduct regular monitoring visits to the eligible subprojects and ensures compliance against a defined checklist. Targeted monitoring can also be undertaken in response to complaints received.

As per the requirements of NEMA, subproject proponents (including contractors and sub-contractors where relevant) are responsible for monitoring the implementation of the ESMP and reporting to the regulatory authority. The competent authority is also responsible for the annual auditing of subprojects to check on EA compliance. The City’s compliance officer is responsible for water, air quality and waste management monitoring and audits for projects.

 CoJ currently employ over 40,000 workers across their 23 administrative departments and 13 municipal entities. The majority of these workers (˜ 93%) are directly employed by the City on permanent contracts, while the balance includes those employed through the Extended Public Works Program (“EPWP”), interns, temporary workers, and apprentices. The male to female ratio of all workers is currently 54% to 46% respectively. The City currently has an average vacancy rate of 7% across all departments and entities.

Human resources (“HR”) within the City are managed through GHCM, who form a part of the Group Corporate and Shared Services (“GCSS”) directorate. GHCM also manages employee assessment, performance management, facilitation of legislated compensation and benefits, maintenance of relations with labor and trade unions, and employee safety, welfare, and health. Furthermore, GHCM ensures compliance with all legislative requirements including the Employment Equity Act, Skills Development Act, Labor Relations Act, and respective Collective Bargaining Agreements (“CBAs”). GHCM report to the director of the GCSS.

Human Resources Policies and Procedures:

The City has developed and implemented several GHCM Policy Frameworks which the various municipal entities are expected to adopt and refine. These policy frameworks, that are aligned with IFC PS2, cover a range of topics including remuneration, training and development, talent management, employment equity, anti-harassment, leave etc. The adoption of these frameworks contributes to standardized human capital environment across the City. Additionally, GHCM have developed and implemented a range of HR policies, procedures, and systems, including an overarching People Centric Strategy to manage their approach to labor and working conditions across departments and entities.

Labor and Working Conditions:

Labor and working conditions within CoJ are managed as per the requirements of South African labor legislation, including the Labor Relations Act, Basic Conditions of Employment Act, Employment Equity Act, and OHS Act. In addition, as supported by the Labor Relations Act, the existing sectoral CBA is considered superior to legislation and hence further defines labor and working conditions within the City. As per the requirements of the Basic Conditions of Employment Act, all workers are provided with a written contract upon commencement of employment, detailing prescribed employment details. 

The existing sectoral CBA, signed in 2015, defines basic and uniform labor and working conditions relating to government municipal workers. The CBA details housing allowances, severance pay, hours of work, leave, benefits, medical aid.

Where any aspect of labor and working conditions is not addressed through national legislation or bargaining processes, these are regulated through various conditions of services as defined by CoJ. These related to code of conduct, harassment, staff housing, working hours (non-standard and shift based working hours are defined in the existing CBAs), and overtime.

As per the requirements of the Skills Development Act and the Local Government Municipal System Act, CoJ have developed a Workplace Skills Plan, that details the implementation of a range of worker development and training activities, including subsidized education, competency and development initiatives, skills audits, and coaching.

Workers Organizations:

CoJ is aligned with the requirements of Section 18 and 23 of the South African Constitution, guaranteeing everyone the right to belong or form a trade union, of which collective bargaining and social dialogue are a cornerstone.

Currently, the majority of CoJ workers are unionized across the Independent Municipal and Allied Trade Union (“IMATU”) and South African Municipal Workers Union (“SAMWU”). The City is a member of the South African Local Government Association (“SALGA”), and engages and bargains with the respective unions under the auspices of South African Local Government Association bargaining council (“SALGBC”).

Currently, there is an existing sectoral CBA between SALGA and the respective trade unions, valid until June 2023, with several amendments and updates in force. As per the requirements of the CBA, CoJ have also established a Local Labor Forum (“LLF”) to further facilitate worker relations at the City level. The City and the LLF meet once per month.

Non-Discrimination and Equal Opportunity 

Non-discrimination and equal opportunity within CoJ is largely managed under the auspices of the Employment Equity Act, which seeks to ensure equal opportunity and fair treatment through the elimination of unfair discrimination. CoJ has defined annual KPIs relating to their gender, disability, transformation, and employment equity targets. GHCM is largely responsible for ensuring CoJ achieves their employment equity targets and has defined various interventions and support measures to assist the various City departments and entities to comply with the requirements of the Employment Equity Act. This includes the development of an Employment Equity and Skills Development forum, employment equity awareness campaigns, and sexual harassment workshops among others. 

Grievance Management:

The existing CBA defines the grievance mechanism available to municipal workers. The mechanism defines a process whereby a worker can submit a grievance to either their immediate superior, head of department, or the municipal manager. The mechanism further defines feedback and resolution timelines. In addition to the defined grievance processes, workers also have the option to submit labor related complaints to the Commission for Conciliation, Mediation and Arbitration (“CCMA”).

Occupational Health and Safety:

CoJ has defined an OHS policy aligned with the requirements of the OHS Act and PS2. The implementation and oversight of the policy requirements fall under the GCSS directorate. As per the requirements of the policy, CoJ is compelled to adopt and implement practical actions to safeguard workers against occupational accidents and diseases as well as ensuring the health and safety contractors employed by the City.

Key requirements of the policy include identification of project specific risks, nomination and training of health and safety reps for each project site (at a ratio of 1:50), incident reporting and investigation, provision of monthly OHS reports to an OHS committee, and monthly OHS audits conducted by the City. Where sites require 2 or more OHS reps, it is mandatory to establish an OHS committee.

OHS reps and committees, where present, are required to immediately report all incidents to the City’s OHS department, which are subsequently reported to the labor inspector within a prescribed period. In most instances, workers were compensated as per the requirements of the Compensation for Occupational Injuries and Diseases Act.

Workers Engaged by Third Parties:

The management of labor and OHS aspects of CAPEX-related contractors and subcontractors is done as per the requirements of the Municipal Finance Management Act, the Preferential Procurement Policy Framework Act, and Section 217 of the Constitution among others. The City has developed and implemented a Supply Chain Management policy defining the approach for procurement and management of third-party service providers.

As per the policy, all third-party service providers are required to comply with the Code of Conduct for Supply Chain Management Practitioners which includes the requirement to comply with relevant legislation and CoJ policies and procedures. In addition, the City is required to complete internal monitoring is service providers’ performance against the requirements of the policy and legislative requirements.

At an eligible sub-project level, all contractors are required to have an onsite safety officer, as well as a safety file detailing their appointment letter, a copy of the OHS Act, an OHS Management Plan, the company’s OHS Policy, a letter of good standing, and material safety data sheets for hazardous materials (if required).

 At an eligible sub-project level, stakeholder engagement is largely guided by the public participation requirements of NEMA when completing either an ESIA or Basic Assessment. This includes developing and maintaining a register of interested and affected parties (I&APs), public notices of participation, records of objections and comments relating to the project, and an opportunity for I&APs to comment on the draft and final reports. This legislated public participation process is aligned with IFC PS1 requirements. In addition to the requirements relating to public participation, the EIA and Basic Assessment Process also require the development and implementation of a project level grievance mechanism to allow for the receipt of project specific concerns and grievances.

In addition to the public participation requirements defined in NEMA, as per the requirements of the Municipal Systems Act, CoJ are required to promote conditions of community and stakeholder engagement and participation. This includes participation relating to the development of the IDP, performance reviews, budget determination, service provision etc.

As per the requirements of the Municipal Systems Act, CoJ has developed various mechanisms, processes, and procedures to allow for the receipt, processing and consideration of petitions and complaints lodged by members of the local community. In addition to these processes, stakeholders can also submit complaints via the Speakers Office, IDP Office, and to the CoJ Office of the Ombudsman whose primary role is to assess public complaints relating to CoJ departments and municipal entities.

 City of Johannesburg Metropolitan Municipality

2nd Floor Council Chamber Wing,

Metropolitan Centre

158 Civic Boulevard

Braamfontein,

Johannesburg