IFC’s appraisal considered the environmental and social management planning process and documentation for the Project and gaps, if any, between these and IFC’s requirements. Where necessary, corrective measures, intended to close these gaps within a reasonable period of time, are summarized in the paragraphs that follow and (if applicable) in an agreed Environmental and Social Action Plan (ESAP). Through implementation of these measures, the Project is expected to be designed and operated in accordance with Performance Standards objectives.
PS1: Assessment and Management of Environmental and Social Risks and Impacts
RANSA has a corporate integrated management system (IMS) policy that covers quality, OHS, and environmental aspects and includes operational guidelines based on good practices in manufacturing, storage, distribution and transport, international commerce security, and airport special services. The IMS includes an Environmental Management System and a Security and Control Management System based on international standards such as ISO 9001:2015 (quality), ISO 14001:2015 (environment), ISO 45001:2018 (OHS), ISO 39001:2013 (road traffic safety), and the World Business Alliance for Secure Commerce (BASC). Based on the business requirements, RANSA maintains ISO certification on selected facilities.
RANSA has a corporate procedure to identify and assess environmental and OHS risks applicable to all activities, products, and services. The procedure includes the requirement to develop a risk matrix and to identify mitigation and control measures.
The company’s existing environmental, health, and safety (EHS) management programs are developed to different business operations commensurate to the level of risk of the operation. The programs are designed to comply with the local legislation and client’s requirements.
RANSA’s emergency planning and response plans (EPRP) are developed at the subsidiary level following a standard template. Each local EPRP is tailored to the potential emergency scenarios that can potentially occur, the business lines, and the risk inherent to the operations. As per ESAP # 1, RANSA will ensure the implementation and compliance of the EPRP standard template across the organization.
RANSA has a corporate compliance procedure that includes monitoring compliance of legal and EHS aspects as part of the IMS. RANSA performs internal audits to ensure compliance with the identified legal and E&S requirements.
As per ESAP # 1, RANSA will update its existing IMS in line with IFC PS1, including the procedures below: i) corporate E&S assurance plan; ii) updated environmental and OHS risk identification procedure to include social aspects; iii) E&S due diligence procedure that includes requirements to conduct E&S assessment in the merger and acquisition process; iv) fire safety programs for bulk storage products, including grains; v) corporate resource efficiency policy; vi) corporate traffic safety procedure; vii) corporate security management procedure; and viii) climate change risk assessment and mitigation plan.
RANSA’s EHS management is structured at the country level, reporting to the local operation manager. At the corporate level, the company’s OHS leader reports to the vice president of International Logistics, while the corporate Environmental, Social, and Governance (ESG) & Marketing leader and the corporate HR vice president report directly to the Chief Executive Officer. The Board oversees the company’s EHS performance with reports from the Audit Committee and Risk Assessment Committee. The country-level OHS team reports to the corporate team. As part of ESAP # 2, RANSA will assign an experienced E&S coordinator at the corporate level to manage the E&S aspects of the IMS and the corporate E&S assurance plan in all countries of operations and acquired operations.
PS2: Labor and Working Conditions
As of May 2023, RANSA has 8,250 employees across 35 cities in 8 Latin American countries. Of these employees, 83% are male, and 17% are female. In the upper management positions, 38% are women.
RANSA has a set of HR policies and procedures in Peru, its largest country of operation, that align with national labor regulations and IFC PS2 requirements, some of which apply at the corporate level. The company’s corporate policies include a code of ethics, a retrenchment policy, and a non-discrimination, diversity, and inclusion policy. These policies apply to every employee regardless of the country of operation. Each employee is given a written contract that outlines their working conditions and terms of employment. During onboarding, employees received an instruction booklet with the company’s policies and training to develop their duties. RANSA's HR corporate team oversees the compliance of labor contractors with applicable labor laws and contract clauses.
The HR policies in Peru include workers' freedom of association. Employees in Peru have two syndicates with which RANSA negotiates collective labor agreements periodically.
RANSA has established an ethics line for workers to report anonymous complaints regarding ethics code violations, including labor and sexual harassment.
As per ESAP item # 3, RANSA will update corporate-level HR policies and procedures to further align it with IFC PS2, applicable to all subsidiaries and acquired operations, including i) recognition of workers' right of association in all countries where it operates; ii) policies and procedures for third-parties workers' supervision; iii) prohibition of child and forced labor in all its operations, contractors, and supply chain; and iv) a comprehensive grievance mechanism accessible to direct and third-party workers including gender-based violence and harassment aspects and the possibility to interpose anonymous complaints.
RANSA follows a set of guidelines for ensuring OHS is aligned with PS2. These guidelines include Hazard Identification and Risk Assessment (HIRA), training for all personnel at their workstation, procedures for handling medical emergencies, and measures for investigating incidents and accidents. The OHS team collects monthly statistics on incidents from all sites. RANSA performs incident investigations and root cause analysis and implements corrective actions as needed to avoid recurrence.
PS3: Resource Efficiency and Pollution Prevention
RANSA’s operations primarily involve logistics and storage services, which do not generate significant amounts of waste and emissions. Electricity at each country of operation is sourced by the local grid, and energy backup systems are implemented in critical operations such as cold storage warehouses. RANSA has implemented resource efficiency initiatives to reduce energy consumption, including replacing conventional light bulbs with LED, designing new warehouses to allow natural light, and automatic shut-off controls for light. Additionally, RANSA is piloting the implementation of solar panels on warehouse roofs. Annual GHG emissions are likely to be above 25,000 tonnes of CO2 equivalent; hence, as per ESAP # 4, RANSA will develop a methodology to quantify its GHG emissions in line with internationally recognized standards..
RANSA’s operations are mostly located in urban areas. The main source of water supply is potable water from the municipal system. Wastewater is generated mostly from domestic wastewater, cleaning activities in warehouses, container cleaning, and truck repair shops. Domestic wastewater is discharged into the municipal sewage systems or stored and collected by authorized third-party contractors. In container cleaning and truck repair shops, water treatment plants are installed and operated by third-party contractors.
RANSA performs monitoring and reporting of emissions in each country of operation, per regulatory requirements in most cases. The company maintains a system to control adequate maintenance records of trucks to ensure units are in optimal working conditions which contributes to reducing emissions. The implementation of pollution prevention and control measures is commensurate to the nature of the activity and the level of risks and impacts. As per ESAP # 1, RANSA will ensure the implementation and compliance of corporate pollution prevention and control procedures across the organization.
RANSA has waste management procedures based on ISO 14001:2015 (environment) and local regulatory requirements in Peru. Waste is segregated in origination, temporarily stored in designated areas, and transported to the final destination. Third-party contractors are selected by RANSA following its contractor management procedures, ensuring that the transportation and final disposal is performed in compliance with national legislation. Data on the quantity, type, and final disposal of waste (hazardous and non-hazardous) is registered by RANSA. Hazardous materials are properly labeled and stored in designated areas.
As per ESAP item # 5, RANSA will enhance its corporate-level waste management procedure by conducting inspections of hazardous and non-hazardous final disposal sites to ensure compliance with safe and environmentally sound management practices vis-a-vis internal procedures, country regulations, and requirements set forth in the WBG General EHS Guidelines.
RANSA stores and transports hazardous materials only in Peru, in line with local and international standards, as required by BASC and ISO certification. The company has developed procedures to ensure safe storage and transportation of hazardous materials, including inspections, transport tracking, and spill prevention and control measures.
PS4: Community Health, Safety and Security
RANSA has safety traffic management procedures, which include the transportation of hazardous materials. The procedures focus on the mining operations in Peru and include an assessment of safety conditions in the route, the vehicle, and the driver, as well as spill prevention and control measures. As per ESAP item # 1, the company will develop a corporate traffic safety procedure, including E&S requirements applicable to owned and third-party fleet, in line with WBG EHS Guidelines and good international practices applicable to all subsidiaries.
RANSA operations are typically situated in industrial parks, which means that the local community is not expected to experience any negative effects on their health, safety, or security. To control traffic generated around RANSA facilities, the company has established measures to promote safe driving, monitor their fleet, and secure its cargo.
RANSA contracts specialized third-party unarmed security companies to protect its facilities and operations. For special services, such as the transportation of high-value cargo, the company contracts armed security guards. As part of ESAP # 1, RANSA will develop a corporate security management procedure in line with IFC PS4.
