This is a category B project according to IFC's Policy on Environment and Social Sustainability (2012). Based on information reviewed by IFC, the proposed project will have limited adverse environmental and social (E&S) impacts that are few, site-specific, largely reversible and readily addressed through existing mitigation measure.  Key E&S risks and impacts associated with the project include: i) the company’s E&S management and monitoring systems and organizational capacity and competency to assess and manage E&S risks and impacts from its operations ;; ii) consistent management of  labor and working conditions and   occupational health and safety iii) supply chain management related to lithium-ion battery manufacturing; iii) monitoring and management of contractor’s E&S performances v)  hazardous waste management including e-wastes and used batteries.                                                  

 Ather has a corporate EHS policy which covers issues including workplace safety, worker code of conduct, resource efficiency, pollution prevention, and emergency preparedness and response. The Company identifies and manages E&S risks and impacts associated with their business operations through an integrated E&S management system designed to comply with applicable national E&S legal requirements and standards.  The Company’s integrated E&S management system has been ISO 14001 and ISO 45001 certified in 2022.

Management Programs: However, the Company’s integrated ESMS need to be further strengthened to address stakeholder engagement, lithium-ion battery supply chain management, anti-harassment, freedom of association & collective bargaining. Ather hired E&S consultants to support them strengthen E&S management system in line with IFC’s Performance Standards (PSs). The Company will also use this new ESMS to identify the E&S risks and impacts from the construction of the proposed new manufacturing facility and develop site specific construction and operational management plans (ESAP#1).   

E&S Organization structure: Ather Energy’s EHS functions are organized under the leadership of the corporate Head of EHS and the lant Head- Hosur who report to the corporate Head of Manufacturing (Production). This team is currently supported by two EHS Leads. As Ather continue to expand the scope of their ESMS and production capacity they will hire additional E&S officers to support effective implementation of integrated ESMS in the new production facility (ESAP#2).    

Monitoring and Review: Ather’s EHS team monitor compliance with legal requirements including fire safety, water quality, accidents, and injuries, among others. Ather also organize frequent EHS trainings on these topics.

Emergency Preparedness and Response: The Company has a documented emergency preparedness and response plan to respond to accidental and emergency situations such as earthquake, flood, fire risks related to production facilities and the battery storage area.                                                  

 Human Resources Policies and Procedures: Ather Energy manage their labor and working conditions according to national and state regulations and corporate Human Resources (HR) practices covering everything from working hours and benefits to occupational health and safety and training.

Occupational Health and Safety: Ather Hazard Identification and Risk Assessment (HIRA) Committee members manage Occupational Health and Safety (OHS) risks through control measures based on a mitigation hierarchy that prioritizes elimination of risks through engineering and administrative controls. Personal Protective Equipment (PPE) such as safety boots and gloves are also provided where needed to enhance worker safety and workplace conditions.

Their ongoing initiative to update their Environmental and Social Management System (ESMS) will broaden and strengthen their labor and working conditions by including additional policies and procedures on workers’ organizations, grievance mechanism for workers, workers accommodations, workers engaged by third parties, and supply chains.

Ather’s HR policy contribute to diversity and inclusion in an open, collaborative, and multicultural workplace. With the construction of the proposed new assembly facilities, their total workforce will increase considerably from the current level of 1100, 14% of whom are women. Ather, have a strong focus on including and training women in their business activities. They are among the industry leaders in India with the highest number of women working in manufacturing facilities.

Workers engaged by 3rd Parties: Ather currently rely on third party contracted workers for many of their core business processes, including labor brokers for contracting assembly workers, transport companies for delivery of vehicle parts, sales partners, and construction contractors for their new facilities.  The Company routinely evaluate and monitor their contractors’ and suppliers’ technical capacity and compliance with applicable national labor regulations. However, Ather’s existing contractor management policies and procedures do not sufficiently integrate E&S risk management qualifications and performance into these evaluations. To address this limitation, Ather have agreed to develop and implement relevant policies and procedures to better assess and monitor contractors’ s E&S qualifications and performance (ESAP#3).     

Supply Chain: Ather generally purchase fabricated lithium-ion battery cells from suppliers in South Korea and China. Initial screening of the company’s most frequent suppliers did not identify any allegations of forced labor in these suppliers’ supply chains. However, Ather’s existing Vendor Audit Process need to be strengthened to assess and monitor E&S policies and performance of the lithium-ion battery suppliers. Ather have thus agreed to develop a Supplier Code of Conduct (SCOC) consistent with PS2 and includes contractual requirements to ensure suppliers abide by them and authorizes Ather to audit their compliance (ESAP#4).                                                   

 Resource efficiency:  The Ather assembly facility in Hosur has many design features that improve resource efficiency. The ridged ceiling provides better natural air flow, High Velocity Low Speed (HVLS) fans reduce the need for air conditioning, and skylights and LED bulbs further increase energy efficiency. Although Ather’s EV assembly activities do not create significant quantities of wastes or emissions, the company have adopted similar good practices to prevent or minimize pollution and wastes. For example: EV parts shipped by their suppliers arrive in reusable packing crates, the sewage treatment plant at Hosur recycles water for plants and flushing toilets, and Ather plan to increase the share of renewable energy in their current grid-based energy consumption by installing solar panels.  

Waste management: Ather solid wastes consist mostly of cardboard, plastics, wooden pallets, food scraps from their cafeteria, and some electronic materials. These materials are segregated in separate bins and storage yards before being processed by government authorized vendors for recycling or disposal.

End-of-life EV battery management: Ather complies with India’s end-of-life EV battery waste requirements Battery Waste Management Rules, dated August 2022 and continue to experiment with different options for battery reuse and recycling. For example, the company provide customers with an assured buyback of their product after three years. They have also implemented several pilot initiatives testing used batteries as energy storage alternatives to diesel burning generators. The established the collection system for end-of-life batteries through network of its dealerships and authorized warehouses and will further strengthen effectiveness of collection system by developing and implementation a end-of-life batteries management plan that will include good international industry practice options for their reuse, recycling and final disposal (ESAP#5).                                                  

 As the project financed facilities will be located within an existing industrial complex, no significant additional impacts are expected on the health, safety and security of nearest sensitive social receptors and communities.

Traffic management: Road and vehicle safety risks could increase in and around the proposed new assembly and sales facilities. However, Ather will mitigate these risks through their contractor management procedures for assessing and monitoring third party logistics and transportation contractors safe driving practices.

Ather also promote safe driving habits among their customers, and their design quality and engineering standards have ensured their product’s strong safety record in line with the various national safety standards.

Security personnel:  Security guards are and are likely to remain unarmed and continue to receive appropriate training on emergency response and community engagement.                                                  

 The proposed project is expected to have very limited impacts on surrounding communities, as the proposed two-wheel EV assembly facilities will be in existing industrial zones.  Ather’s principal means of stakeholder engagements are through popular social media platforms like LinkedIn and Instagram, and through their public Internet site (https://www.atherenergy.com/). The company maintains an active online public profile by sharing everything from news about product developments to job openings and memes about company culture. Ather’s LinkedIn profile alone has more than 323,000 followers. Ather stakeholders currently engage and share their questions and concerns with the company through each of these available channels.

In 2021 Ather hired sustainability impact rating & certification company Aspire Impact (https://aspireimpact.in/) to review and rate their corporate performance for 250+ metrics related to products, policies, people and the planet. The Aspire Impact report represents an independent third-party analysis of Ather E&S performance that is widely disclosed and publicised to Ather’s stakeholders. Ather’s ongoing ESMS update described above in the PS1 section will include additional policy commitments and programs for community engagement, Corporate Social Responsibility (CSR) and an external grievance mechanism.                                                  

 Company: Ather Energy Private Limited

Point of Contact: Tarun Mehta, Chief Executive Officer (CEO)

Telephone Number: +91-7676600900

Email: info@atherenergy.com

Mailing Address: Ather Energy Private Limited, 3rd Floor, Tower D, IBC Knowledge Park, #4/1, Bannerghatta Main Road, Bangalore, Karnataka, 560029, India

Website: www.atherenergy.com