The project has been categorized as B according to IFC’s Policy on Environmental and Social Sustainability (2012). The Project involves 2 unfunded risk sharing facilities in 2 trade finance facilities managed by 2 international partner banks in favor of Nitron Group so as to support their fertilizer trading activity. There are potential E&S risks due to the storage and shipping of fertilizers, related to: emergency response, pollution control and health and safety.

 Nitron states its commitment to E&S responsibility, as well as compliance with local regulations across all countries where it operates through its Corporate Social Responsibility (CSR) website: http://nitrongroup.com/csr/. Nitron’s core operations entail buying and shipping fertilizers directly to customers or to distributors across Latin America and Africa. Additionally, a minor activity by Nitron is to lease bulk storage space for its products to a third party to facilitate distribution activities.

Handling of solid bulk cargo entails considerable risks that are managed by Nitron by following all applicable regulations for its activities, described as follows. The International Maritime Organization (IMO) is the United Nations specialized agency with responsibility for the safety and security of shipping and the prevention of marine and atmospheric pollution by ships. Among the IMO regulations and guidance relating to the transport of solid bulk cargoes, the International Maritime Solid Bulk Cargoes (IMSBC) Code is mandatory under the International Convention for the Safety of Life at Sea (SOLAS). Additionally, The International Convention for the Prevention of Pollution from Ships, 1973/78 (MARPOL) will apply and includes regulations aimed at preventing and minimizing, both accidental and operational, pollution from ships, includes requirements for discharge of dry bulk cargo and residues and cargo hold wash water containing cargo residues.

Nitron ensures that every shipment follows the IMSBC Code, which facilitates the safe stowage and shipment of solid bulk cargoes by providing information of the risks associated with their shipment and the procedures to be adopted for carriage. Moreover, all shipping operations are contracted to specialized logistic brokers. Shipments are done using vessels that are certified and vetted to fulfill shipment requirements and applicable regulations. Nitron also relies on specialized third-party inspection companies that verify that transport from origin, loading on vessels, transport on bulk vessels, offloading at destination ports, bulk transport to clients are undertaken as per IMSBC Code, and internationally recognized practices and local requirements regarding safety, pollution control and emergency response, among other.  This independent certification is required at every step of the shipment process to ensure product quality, as well as safety of product storage and handling.

The GHG emissions associated with the Project are due to the shipping and transportation activities related to Nitron’s business.  However, owing to the bulk cargo movement by international shipping companies (together with other cargo), it is difficult to estimate the GHG emissions directly attributable to Nitron. The Company is committed to environmental protection through its Corporate Social Responsibility (CSR) statement and follows the relevant international codes applicable to its operations as described above.

In relation to its non-core storage activity, Nitron is renting bulk storage capacity for its fertilizers in a 5,500 m2 facility in the Villa Constitución Customs-Free T Zone (Zona Franca Santafesina), located in the town of Villa Constitución; Santa Fe Province in Argentina. In line with its CSR policy, Nitron has a contractual requirement with the supplier of storage space to comply with all applicable environmental regulations. Nitron is planning to store and distribute from this facility: monoamonic phosphate (MAP), diamonic phosphate (DAP), triple super phosphate (TSP), simple super phosphate (SSP), ammonium sulphate, Pothasium Chloride and Urea. None of these are characterized as hazardous. The expected annual volume to be traded is about 225,000 tons, which constitutes about 3% of Nitron’s annual trade.

For the operation of this facility, the owner (PTP Warrant), undertook an environmental and social impact assessment (ESIA) to obtain the required environmental license. The ESIA identified the following key impacts: vehicle traffic, emissions of particulate material during handling and storage of fertilizer, noise and accidental releases. Mitigation measures have been defined for these identified impacts and are included in the environmental management plan (EMP) for the facility which the operator is required by the environmental authority to implement.  The ESIA determined that any potential emissions of particulate material would be contained within the Customs-Free Zone.

 In regard to stakeholder engagement related to Nitron operations, the Company has a website with contact information. In accordance with the Environmental and Social Action Plan for the previous trade finance facility with the Company, Nitron agreed with IFC to enhance the external grievance mechanism associated with the storage facility referenced and to identify and engage with stakeholders associated with the storage facility so that risks and mitigation measures of its operations are being adequately disclosed to interested parties. In addition, the Company has agreed to ensure risks associated with the storage facility operation are understood by stakeholders and that they are aware this activity is on-going and expected to be finalized by the end of September, 2022. The actions, as defined above, are currently being implemented by the Company and no additional actions are deemed necessary for the renewal of the trade finance facility with the Company.

For external grievances, the Company can receive and address concerns from the community through its website as well as by telephone and email as per the contact details provided.

 Contact Person: Mr. Enzo Formato

Company Name: Nitron Group Corporation

Address: 35 Mason Street, Greenwich, CT 06830USA

Email: enzo@nitrongroup.com

Phone: +12033023455