E&S Policies. Kirene adopted a set of policies documented in its ‘E&S Charter’. The policies commit the company to promote environmental protection, workers OHS protection, neighbouring community’s welfare, responsible supply chains, energy and resources efficiency, sound waste management, and fair recruitment and employee training. The food safety policy underscores Kirene’s engagement and strategy to control allergenic risks and cross-contamination in final products in order to reduce customer complaints related to foreign bodies in the product. The policies are operationalized through management plans and detailed procedures specifying roles and responsibilities at different functions to fulfil the company goals.
Identification of E&S Risks and Impacts. Kirene has implemented an E&S risk management procedure as part of its Integrated Management System. The company’s risk register includes information from the ‘Hazard Study’ and the E&S Impact Assessment (ESIA) submitted to local Authority as per regulatory requirements, from findings of internal/external inspections and audits, and from management or stakeholders’ reviews. Given that the new production lines are an expansion of existing processing capacity, the E&S risks are not expected to change significantly, except for the risk of water extraction.
The company’s assessment of groundwater availability and quality conducted in 2016 indicated that associated risks and impacts were high due to water vulnerability in the Diass region. A detailed water protection plan was developed with relevant recommendations to address the gaps; however, it has not been satisfactorily implemented to date, leaving critical recommendations unaddressed. Kirene will seek a suitably qualified consulting firm to conduct a specific risk assessment of impacts on groundwater resources due to water abstraction and wastewater discharge, as per agreed Terms of Reference (ESAP#1). The study shall include (i) detailed water balance (ii) audit of water consumption, (iii) evaluation of the ratio between water intake, net production and effluent discharge to assess Water Use Ratio (WUR), (iv) quantification of water consumption in the different processes of the plant, (v) evaluation and identification of opportunities and investments to optimize/reduce water use in an economic way and improve the WUR.
Kirene has further developed an E&S risk assessment procedure which is part of its IMS. Risks associated with operations and assets are assessed and tabulated in a risk register, and enhancements or mitigation measures are proposed accordingly. Kirene will ensure risks associated with the new project namely, the installation and operation of the solar panels and of the new production lines, are identified, assessed and documented in accordance with the existing risk management procedure (ESAP#2).
E&S Management Systems. As an existing IFC client, Kirene has rolled out an Integrated Management System (IMS) which includes an E&S Management System (ESMS) and a Food Safety Management System (FSMS) aligned with IFC PS1 requirements. The ESMS has been designed and continually upgraded in fulfilment of the previous projects’ E&S Action Plan (ESAP) as per investment agreements. It is operationalized through documented E&S policies, risks and impacts assessment and mitigation, organizational capacity and training, Environmental and Occupational Health and Safety (OHS) plans and procedures, emergency procedures, training programs, contractors’ requirements, E&S monitoring and reporting, and management review. The FSMS is designed and implemented with the support of external consultants and was certified in accordance with ISO22000 and HACCP (Hazard Analysis and Critical Control Points) requirements in December 2021. The FSMS includes documented policies, risk assessments, monitoring records and procedures for microbiological and physico-chemical controls to ensure the safety of foodstuffs throughout the supply chain. Kirene’s monitoring and reporting practices and engagement with different stakeholders is found at the company’s website https://kirene-groupe.com/impacts-et-engagements/politique-rse/. The IMS was found to be mature and compliant with IFC PS1 requirements.
E&S Management programs. Kirene has developed and implemented E&S management plans and standard operating procedures (SOPs), as part of its ESMS, as required under previous IFC’s investments. The plans are primarily related to the management of human resources, OHS, fire safety, food safety, waste, supply chain, air emissions, water and energy efficiency and emergency response. Staff are trained on procedures relevant to their areas of activities. Most of the plans were noted to be commensurate with the scale and E&S risks and impacts of the current operations. Going forward, Kirene will update its existing E&S management plans and implement additional SOPs, as may be deemed applicable, based on the findings of the additional risk assessment (ref. ESAP#1) to mitigate additional risks associated with the proposed investment (ESAP#3).
E&S Organizational Capacity. Kirene has an E&S team reporting to the Managing Director. Relevant E&S responsibilities are embedded at key positions with sufficient authority to implement the ESMS and FSMS. The plant manager is designated as the ultimate responsible for E&S compliance at the production site. His oversight extends to resource efficiency, water management, waste reduction, OHS, GHG emissions, wastewater management and sustainability reporting. The EHS Officer is tasked to operationalize E&S procedures and works in collaboration with the Audit and Certification Officer, both reporting to the Quality Health Safety and Environmental (QHSE) Manager. The corporate social responsibility (CSR) officer is in charge of stakeholders engagement and corporate social responsibility programs. The HR officer reporting to the plant manager oversees working conditions and labour compliance and training programs for employees and contractors. He coordinates staff E&S induction, OHS training, Food safety training as per ISO 22000 requirements and task-based training. The E&S team is adequately experienced to meet IFC PS requirements. Going forward, based on the findings of the additional water risk assessment (ref. ESAP#1) to ensure sustainable management of water resources, Kirene will hire and maintain a suitably qualified performance specialist for its overall operations who will also be responsible for the implementation of the water protection plan (ESAP#4).
Emergency Preparedness and Response. Kirene has documented an Emergency Preparedness and Response Plan (EPRP) as part of the Internal Operations Plan. The plan describes potential emergency scenarios at the plant and specifies responsibilities, measures and resources necessary. Scenarios anticipated include fire, explosion, accidental environmental release or spills, severe accidental injuries. Routine emergency drills are performed at the facility for effectiveness. The plan was validated by local authorities and was found to be in line with national law requirements. The production site emergency system was upgraded as part of the life & fire safety (L&FS) recommendations to comply with WBG EHS Guidelines. The system includes fire hydrants, automatic sprinklers, pumps, smoke and heat detection, fire extinguishers and fire alarm systems with dedicated water storage and emergency exits. Separate alarm systems have been installed for ammonia leak detection in the refrigeration system. The systems were noted to be adequately maintained and are audited annually by external experts.
E&S Monitoring and Review. As part of its ESMS, Kirene has adopted a structured EHS monitoring and reporting system on environmental, HR, OHS and social impacts of its operations. Monitoring parameters, frequencies and methodology are defined by the ESMS, and data is stored in a centralized database for periodic reporting. Key performance indicators (KPIs) are defined for workplace safety (including lost-time injuries frequency rates), water quality and consumption, energy efficiency, solid and hazardous waste, noise levels, OHS training, evaluation of service providers and implementation of corrective actions with respect to internal and external audits. An Annual E&S Monitoring Report (AMR) is submitted to IFC, benchmarking Kirene’s E&S performance to local requirements and applicable WBG EHS Guidelines (General and Sector specific for food and beverage processing). Data reviewed during this appraisal indicate that Kirene needs to improve its tracking of water use ratio (ref. ESAP #1). The EHS officer schedules E&S compliance inspections jointly with relevant section responsible, or with the plant manager. External inspectors from the Regional Division of the Environment and Classified Establishments of Thies (DREEC/THIES) conduct periodic external audits of the facility. The municipality fire department conducts fire safety technical inspections. FSMS audits are undertaken by external specialists per ISO 22000/HACCP certification requirements. Going forward, based on the findings of the additional risk assessments referred to under ESAP#1 and #2, the company will augment the E&S objectives and KPIs and incorporate them to the current E&S monitoring and reporting (ESAP#5).
Supply Chain risk assessment. Kirene’s E&S risk assessments highlighted the screening of labour practices in the supply chain as a key risk. The company subsequently developed and signed a ‘Supplier's Code of Conduct’ with raw milk and mangoes suppliers, explicitly prohibiting child and forced labor in their operations, consistent with PS2 requirements and mainstreamed it in purchase agreements. These agreements were initially signed with 8 commercial farms and 2 cooperatives in 2019-2020 but only pursued with 5 of the farms as of 2022.
A biodiversity screening was performed on the regions in which the cooperatives are located given that the company did no longer retain individual farmers locations. The screening found that cooperatives are in regions with high range rarity but there is no evidence of recent significant conversion. All the farms are located within modified habitats away from areas likely to support Key Biodiversity Areas (KBAs) values (wetlands, lakes, shorelines). However, one farm appears to be close but outside a Protected Area (PA) and another one overlaps a Key Biodiversity Area (KBA). Kirene shall (i) require the concerned farmer to confirm avoidance of overlap with Senegalese authorities; and (ii) integrate good practice requirements into their supply chain and supplier code of conduct that requires the screening and avoidance of farms that required conversion of natural habitat and/or overlap PAs or internationally recognized areas (ESAP#6). These suppliers were further trained by IFC Advisory team on Good Agricultural Practices (GAPs) under the IFC-Kirene Dairy Advisory program implemented in 2019-2020 and were sensitized on control procedures for raw milk hygiene, quality safety and the screening of labour practices. Enforcement of the Code is monitored by Kirene’s quality assurance technicians based at collection centers. Kirene’s UHT milk is based on a blend of powdered (70-80%) and raw milk (20-30%). Powdered milk is purchased from suppliers approved by Candia, an ISO 9000 and FSSC 22000 certified company, promoting environmental sustainability. For the larger portion of fruit juice produced based on concentrates, nectar and fruit concentrates are sourced from Dohler, a German based global producer, which maintains Fair Trade certification and promotes decent working conditions as per ILO Conventions. Mango pulp is supplied from Comafruit in Mali, which sources raw mangoes from traders and farmers committed to maintain Global Gap certification. Sugar is sourced from Cosumar, a Morocco based firm, that retains food safety certification (FSSC 22000) as well as environmental and safety systems certifications (ISO 14001 and ISO 45001). Packaging materials are purchased from company approved suppliers.
Kirene will enhance its supply chain management system by (i) requiring a legal representation of each major raw materials supplier by signing off on the Supplier Code of Conduct, (ii) developing contractual provisions and enforcing them by its supply chain team, through periodic audits (ESAP#7). For the solar project, Kirene will source solar panels via an energy supply contract with a French-based supplier (CVE). At the time of appraisal however, this arrangement was not yet finalized. To mitigate the global concern around forced labor in the solar equipment supply chain, Kirene will ensure that the solar PV supplier selected is signatory to the Solar Energy Industries Association’s Forced Labor Prevention Pledge and include specific contract language in the procurement of the solar equipment (ESAP#8).