This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability (2012). The key environmental & social (E&S) issues and risks associated with this project include: the company’s E&S management capacity including identification and management of the operations, and establishing new operations (e.g. new rented warehouses), labor and working conditions, occupational health and safety (OHS), and stakeholder engagement.

Environmental and Social Assessment and Management System. The company has started developing an E&S management system (ESMS) to systematically organize its approach to E&S management, including incorporation of relevant IFC Performance Standard requirements. Therefore, as part of ESAP #1, the company will be required to provide a copy of the developed ESMS to be applied to its operations and provide sufficient management capacity and training for its implementation.

The ESMS will incorporate the following elements: (i) policy; (ii) identification of risks and impacts; (iii) management programs; (iv) organizational capacity and competency; (v) emergency preparedness and response; (vi) stakeholder engagement; and (vii) monitoring and review. The ESMS should cover both the company’s own operations and as appropriate consider the operations of third parties (e.g. third party logistics providers including procedures for vehicle and driver safety, driver requirements and route planning) and suppliers. The ESMS will include occupational health & safety procedure (for the operations including (i) identification of potential hazards to workers; (ii) provision of preventive and protective measures, including modification, substitution, or elimination of hazardous conditions or substances; (iii) training of workers; (iv) documentation and reporting of occupational accidents, diseases, and incidents, including investigations), resource efficiency monitoring (including energy and water consumption monitoring), waste and hazardous materials management procedures and if required, security management (and management of third-party security providers).

Organizational Capacity and Competency. The company has formally nominated E&S roles. For the ESMS to be completed under ESAP #1, the company will incorporate the E&S roles and responsibilities and the E&S organizational structure.

Emergency Preparedness and Response. The company has developed a Disaster Emergency Plan and Business Community Plan, relating to emergency preparedness and response, and has certified first aiders. As part of ESAP #2, the company will be required that the fire safety systems and equipment to be checked (and tested) on a regular basis appropriately by qualified parties. In addition, the company will develop emergency response plans for new operations and will provide equipment and facilities for emergency response. This should include fire drills, and inspection and testing of fire safety systems and equipment.

Monitoring and Review. As part of ESAP #1 monitoring and review procedures will be developed and formally incorporated into the ESMS to monitor and measure the implementation and effectiveness of the management programs, as well as compliance with any related legal and/or contractual obligations and regulatory requirements.

Working Conditions and Management of Worker Relationship. As of July 2022, the company employs a total of around 520 employees across three sites in Indonesia with an approximate male to female ratio of 40:60.

Human Resources Policies and Procedures. The company has developed HR policies and procedures relating to its own operations and workforce; and is committed to creating a safe and inclusive workplace culture. This includes a Code of Conduct that requires non-discrimination and a Company Regulation that covers various aspects of employment, such as recruitment, leave, benefits, promotion, etc. which are communicated at the start of employment. The company will update its existing HR policies and procedures and develop processes in line IFC PS2 requirements as captured under ESAP #3.

Workers’ Organization. According to the company management, the company respects the freedom of association but has reported that currently there are no unionized employees. Indonesia has ratified ILO conventions relation to freedom of association and collective bargaining.

Grievance Mechanism. Whilst the company has a whistleblower hotline, the company has not yet developed a formal internal grievance mechanism. As captured under ESAP #3, the company will develop and implement a formal timebound internal grievance mechanism, which will also allow for anonymous complaints to be raised and addressed, where its contractors will have also access to raise grievances.

Occupational Health and Safety. The company has not formalized policies and procedures to cover safety programs as yet. Therefore, as part of ESAP #1, under the ESMS the company will develop occupational health & safety procedures for the operations including (i) identification of potential hazards to workers in the office and warehouse(s); (ii) provision of preventive and protective measures, including modification, substitution, or elimination of hazardous conditions or substances; (iii) training of workers; (iv) documentation and reporting of occupational accidents, diseases, and incidents (including incident investigation).

Workers Engaged by Third Parties. Currently, the company undertakes a rolling program of visits to suppliers and has developed a checklist that includes a review of E&S aspects relating to permits, labor & working conditions and environmental aspects. The company uses third parties for distribution. As part of ESAP #1, E&S management procedures for suppliers and third party logistics will be incorporated into the ESMS.

Resource Efficiency. The company is not a significant user of energy and water currently, or generator of wastewater. However, resource efficiency and pollution prevention aspect will be considered under the ESMS, under ESAP#1

GHG Emissions. The company is not a significant user of energy or emitter of GHG emissions, and total annual GHG emission is expected to be below 25,000 tonnes carbon dioxide equivalent per year.

Solid Waste Management. The company is not currently a significant generator of waste with limited waste being produced from its operations, however, waste management will be considered under the ESMS under ESAP#1.

Hazardous Materials. During the operations there are limited hazardous materials present and used by the company, such as cleaning and maintenance chemicals. Management of hazardous material, including its substitution, handling, storage and disposal, will be considered under the ESMS under ESAP#1.

Community Health and Safety. The company uses third party logistics companies for distribution. Under ESAP #1 the company will develop procedures for third party logistics providers, according to the leverage of the company, including vehicle and driver safety and driver requirements. Given the nature of the warehousing, the main community health & safety issues are expected to be in relation to road transport and as such are captured above.

Security. The company does not currently use third party security providers for sites that it operates. If this changes as the company grows, the company will review and formalize requirements for third-party security, which will be captured under the ESMS per ESAP#1.

Currently, the company does not have a formal mechanism for stakeholder engagement or external communications, although a website is available. The company, as part of ESAP #4, will develop and implement a stakeholder engagement and external communications mechanism which will describe the procedures to: (i) receive and register external communications (including any grievances from the interested parties); (ii) screen and assess the issues raised and determine how to address them; and (iii) provide, track, and document responses, if any. This procedure will include identification of stakeholder, and communication and engagement processes with them, beyond the grievances.                                                   

Contact Person: Iqbal Muslimin

Company Name: Evermos

Address: Jalan Sindang Sirna no 38, Bandung, Jawa Barat, Indonesia 40153

Email: iqbal@evermos.com

Phone: +6285640043274