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
E&S Policies and Management System. Fruitist has developed a set of corporate policies that provide the foundation for its Environmental and Social Management System (ESMS) and cover environmental, social, labor, and occupational health and safety commitments. The Environmental and Social Policy sets out commitments to biodiversity protection, efficient use of resources, regulatory compliance, and stakeholder engagement. The Occupational Health and Safety Policy outlines the Company’s approach to hazard identification and prevention of work-related incidents. The Labor Policy defines principles on working conditions, including the promotion of a safe and respectful workplace. These policies are approved by senior management and are broadly consistent with IFC PSs requirements. In addition, the Company has implemented an ESMS aligned with ISO 14001 principles, supported by policies, procedures, standard operating protocols, and management plans applied across its facilities and farms. In addition, Fruitist maintains several international certifications and audit schemes, including water stewardship (AWS), agricultural production and traceability standards (GLOBAL G.A.P. and GRASP), and social and labor management certifications (SMETA and EFI).
Identification of E&S Risks and Impacts. The Company identifies and manages E&S risks and impacts associated with its operations through compliance with applicable national standards and E&S regulatory permits and requirements. As part of these requirements, Fruitist has developed environmental impact assessments which are submitted to competent authorities and include baseline characterization, identification and evaluation of impacts, and the definition of mitigation and environmental monitoring measures. In addition, the Company applies internal tools, including risk assessment and control matrices, legal compliance registers, and aspects and impacts matrices to identify, assess, and mitigate E&S risks across its operations.
The Project’s area of influence is defined within the environmental impact assessment instruments supporting the permitting process. However, the criteria used to delineate the area of influence do not reflect a systematic methodology to capture potential impacts on affected communities. To address this, and as per ESAP #1, Fruitist will review and confirm the Project’s social area of influence through an independent Social Impact Assessment (SIA) and integrate the SIA outcomes into its management plans and decision-making processes.
In addition, existing assessments focus on site-specific impacts and do not capture cumulative effects from the broader agricultural development. To address this, and as part of ESAP #2, Fruitist will conduct a Rapid Cumulative Impact Assessment (RCIA) to identify combined impacts and inform additional mitigation measures, as needed. The RCIA assessment will consider the findings of the additional hydrogeological analysis (ref. ESAP #8) and will be developed in line with IFC’s Good Practice Handbook Cumulative Impact Assessment and Management: Guidance for the Private Sector in Emerging Markets.
The Project involves the use of land under a combination of usufruct agreements with the San Pedro Community and areas acquired through an auction process conducted by the Regional Government of Lambayeque. While land tenure is formally documented and reflects voluntary agreements with the community, the current documentation does not assess these arrangements against potential impacts on land users or affected communities. Therefore, as per ESAP #3, Fruitist will undertake a gap analysis of the contractual arrangements with the Morrope Community against IFC PS5 requirements, and develop and implement corrective actions, as needed.
In line with national legislation, Fruitist conducts archaeological pre-assessments for all new farms and expansions, and the Company holds Certificates of Non-Existence of Archaeological Remains (CIRA) for existing planted fields. To ensure alignment with PS requirements and as part of ESAP # 4, Fruitist will develop a formal Chance Find Procedure for any future excavations, consistent with PS8 requirements.
Organizational capacity. Fruitist’s E&S organizational structure includes the Sustainability and HR departments, which coordinate across all levels of the organization. The Sustainability team covers environmental management, biodiversity, and community relations. The HR department oversees labor compliance and internal grievance mechanisms. The OHS team, embedded within the HR function, is responsible for managing occupational health and safety. Overall, organizational capacity is robust and commensurate with the Company’s operations.
Emergency Preparedness and Response (EPR). Fruitist has documented Emergency Preparedness and Response Plans (EPRPs) covering agricultural fields and packing operations. These plans address both natural and operational emergency scenarios such as seismic and extreme weather events, chemical spills, and toxic gas leaks. The EPRPs include defined roles and responsibilities and communication protocols, supported by trained emergency brigades and periodic drills. Environmental incidents are addressed through a dedicated procedure that establishes requirements for identification, reporting and response.
Management and monitoring programs. As part of its ESMS, Fruitist has implemented E&S management plans to address operational impacts related to water, energy, effluents, waste, biodiversity, and OHS aspects. Fruitist has also developed a Community Relations Plan and a Stakeholder Engagement Plan to manage social impacts. The implementation of these plans is supported by an integrated monitoring framework with defined environmental KPIs and OHS leading and lagging indicators, including semi-annual environmental monitoring reported to authorities, and regular internal and external audits and certifications. As part of ESAP #5, Fruitist will formalize and document its management and monitoring plans and integrate them into the ESMS.
PS2: Labor and Working Conditions
In Peru, Fruitist employs a large seasonal workforce, with approximately 16,000 workers engaged during the peak harvesting season and around 3,000 in the low season, of which about 42% are women in both periods. In addition, the Company maintains 94 full-time contracted staff dedicated to specific services such as cleaning, food services, health, and security.
Human Resources Policies and Procedures. Frutitst’s HR-related policies and procedures such as the Code of Ethics and Conduct, Labor Policy and Salary Policy are aligned with Peruvian legislation and PS2 requirements and address key labor and human rights principles, including the prohibition of child and forced labor and the protection of freedom of association. The Company follows national labor regulations, including those related to minimum wage, benefits, working hours, and the use of formal written contracts, copies of which are made available to each employee. The Company does not employ individuals under the age of 18, and the employees’ ages are verified and recorded during the recruitment process. While
Fruitist’s workers are not unionized, there is a workers’ committee in place to report unfair labor conditions or practices to the Company’s management, as needed.
Workers’ accommodation. Fruitist provides gender-separated accommodations to permanent staff (including technicians and other specialists) and to temporary workers recruited from other cities and regions of Peru. The accommodation facility (Lote Norte Camp) has a capacity of approximately 3,000 people and is situated 30 minutes from the Company's fields. Resident workers are provided with meals and have access to recreational areas and activities. Potable water for human consumption is produced on-site through a dedicated water treatment plant, and the Camp has a health post with permanent medical doctors and nurses. Camp operations are currently governed by the Company's internal procedures which cover rules of conduct for workers and visitors during their stay in camp facilities. Overall, the Camp’s conditions are aligned with IFC PSs requirements.
Worker’s Grievance Mechanism. Complaints and suggestions related to labor rights or labor non-conformities are handled by the HR team following a specific documented procedure. The workers’ grievance mechanism is accessible to workers, third-party contractors and suppliers through multiple channels (in person, website, email, phone number, labor committee representatives), which allow for anonymous submissions and are supported by formal investigation and review procedures.
Non-Discrimination and Equal Opportunity. Frutitst’s Code of Ethics and Conduct includes provisions on non-discrimination, equal opportunity and protection against harassment. The Company’s procedure for the Prevention and Response to Sexual Harassment in the Workplace establishes guidelines to address SEAH, in line with Peruvian law, including defined steps for handling reports, and mandatory prevention training for all personnel. However, a specific GBV/SEAH risk assessment to identify and understand risks across operations has not been conducted. Therefore, as per ESAP #6, Fruitist will (i) conduct a GBV/SEAH risk assessment covering agricultural and packaging operations, worker accommodation camps, and worker transportation arrangements; (ii) develop and implement a GBV/SEAH Action Plan based on the findings; (iii) enhance its Prevention and Response to Sexual Harassment in the Workplace procedure to incorporate a survivor-centered approach; and, (iv) strengthen the tracking and analysis of GBV/SEAH reports by introducing clear KPIs within the ESMS to identify trends and inform corrective actions.
Workers engaged by third parties. In Peru, Fruitist engages 94 contractors providing specialized services including cleaning, catering, health, and security. These engagements are governed by the Code of Ethics and Conduct for Suppliers - which is aligned with Fruitist’s own Code of Conduct and Ethics - and the Suppliers’ Health and Safety Procedure, which defines key OHS, labor and other obligations for suppliers and contractors. OHS requirements are embedded in the Company's contractor selection and procurement processes, and all contractor personnel are required to complete OHS induction and training prior to commencing work on site.
Occupational Health & Safety (OHS). Fruitist maintains an OHS management system based on HIRA (Hazard Identification and Risk Assessment) matrices to systematically identify hazards across all operations, assess their associated risks, and define mitigation measures. These assessments cover key occupational risks typical of the Company’s operations, including exposure to agrochemicals, solar radiation, biological hazards, and interactions with machinery and vehicles. Fruitist has established control measures such as the use of PPE, task-specific procedures, training programs, and health protection measures. In addition, Fruitist has formalized an occupational health surveillance framework through a Medical Surveillance Program and an Occupational Hygiene Monitoring Procedure.
Workers are transported daily to and from farms and facilities under a defined road safety framework that sets requirements for driver qualifications, vehicle maintenance, and safe driving practices. Further, all vehicles used are equipped with GPS tracking.
Fruitist registered a Lost Time Injury Frequency Rate (LTIFR) per 200,000 hours worked in 2025 of 0.31, which is lower than the 4.1 benchmark of the U.S Bureau of Labor Statistics for crop production. No fatalities were recorded over the last three years.
To assess the application of the mitigation hierarchy and further strengthen its OHS practices, as part of ESAP #7, Fruitist will conduct a technical and independent OHS risk assessment covering packing facilities (e.g., machinery safety, hazardous materials exposure), agricultural operations (e.g., heat stress, hydration, rest cycles), and worker transportation (e.g., journey duration, vehicle conditions, driver competency, and fatigue risks associated with cumulative travel time). Based on the findings, Fruitist will develop and implement an OHS improvement action plan, including a documented heat stress management protocol that covers monitoring of environmental conditions, mandatory work–rest cycles, and hydration measures.
PS3: Resource Efficiency and Pollution Prevention
Energy. Fruitist primarily sources electricity from the local power grid, complemented by on-site renewable energy generated through 126 solar panels installed at the Lote Norte Camp and selected operational facilities. In addition, the Company has an Energy Efficiency Plan (2024–2030), which sets a target to reduce energy consumption per ton of product by 5% by 2030.
GHG emissions. Fruitist has a GHG emissions inventory that quantifies Scope 1, Scope 2, and Scope 3 emissions associated with its operations. In 2024, Scope 1 emissions totaled 15,629.79 tCO2e, Scope 2 emissions 3,461.36 tCO2e, and Scope 3 emissions 12,959.54 tCO2e. In 2025, the Company approved its decarbonization strategy, which sets a GHG emissions reduction target of 3% per year.
Water. Fruitist’s operations in Peru are located within an arid, water-stressed area where the Company’s water needs are covered by regulated surface water transfers from the PEOT and groundwater abstraction through permitted wells. Fruitist monitors water use, applies irrigation systems with sensors and automated controls, including drip irrigation, and is transitioning to container-based cultivation to further increase water and fertilizer use efficiency. In addition, the Company is certified under AWS for water stewardship and SPRING for sustainable agricultural water management.
Fruitist is a founding member of the Valle Nuevo de Olmos Groundwater Users’ Association (Junta de Usuarios del Sector Hidraulico de Aguas Subterraneas Valle Nuevo de Olmos), a formal organization representing groundwater users within the area and operating under the jurisdiction of Peru’s water authorities. The Association coordinates groundwater management at the sector level, including the inventory of wells and compilation of extraction data, and has conducted hydrogeological studies and numerical groundwater flow modeling. These studies indicate increasing pressure on the Olmos–Tierras Nuevas aquifer due to agricultural expansion and suggest that the aquifer relies on recharge from surrounding systems. However, existing studies do not adequately quantify aquifer connectivity or groundwater transfer rates, nor do they clearly define sustainable extraction limits or fully assess the impacts of increased groundwater use. As part of ESAP #8 and building on existing data, the Company will conduct additional hydrogeological analysis to better understand groundwater flows between aquifers, key recharge areas, and potential impacts under different water use scenarios, including increased groundwater extraction. Based on this, the Company will reassess groundwater abstraction limits and establish additional operational controls to prevent aquifer depletion and adverse impacts on other users.
Pollution prevention. Wastewater from sanitary facilities is treated in two wastewater treatment plants located in the C5 and C6 lots and reused for irrigation of green areas. Industrial wastewater, generated from cultivation activities and associated with the use of agrochemicals, is managed by a licensed external company for treatment and final disposal at authorized facilities. There are no direct discharges of treated effluent into water bodies. Fruitist has a documented Solid Waste Minimization and Management Plan that establishes procedures for waste characterization, segregation, storage, collection, and final disposal, distinguishing between hazardous and non-hazardous waste.
Pesticide use and management. The Company implements an Integrated Pest Management (IPM) approach based on field monitoring that includes the use of pheromone and visual traps to inform pest control decisions. Control measures prioritize biological, mechanical, and physical methods, reducing reliance on chemical inputs. The IPM approach is integrated with broader agroecosystem management practices, including biodiversity enhancement, trap plants, biological corridors, and soil health improvement.
Pesticides used are authorized by Peru’s National Agricultural Health Service (SENASA) and Fruitist does not use pesticides classified under World Health Organization’s (WHO) as Class 1a (extremely hazardous) and 1b (highly hazardous). In line with PS3 and the EHS Guidelines for Perennial Crop Production and as part of ESAP #9, Fruitist will document existing IPM practices through written procedures and protocols, including a Pesticide Management Plan. This plan will include: (i) procedures for pesticide selection, procurement, transport, storage, handling, application, and final disposal in accordance with GIIP; (ii) criteria to ensure that only pesticides meeting international safety standards are used, including screening against WHO hazard classifications; (iii) measures for safe storage, including secondary containment, inventory management, and spill prevention; and (iv) a commitment not to purchase, store, use, or trade pesticides classified as WHO Class Ia or Ib, or other internationally restricted substances.
Management of hazardous materials. Hazardous materials used in Fruitist’s operations include phytosanitary products, fertilizers, fuels, ammonia used in refrigeration systems, compressed gases, and other chemical substances. Fruitist manages these materials within its OHS framework which requires proper labeling and identification, availability of safety data sheets (MSDS), use of appropriate personal protective equipment (PPE), and training and supervision.
PS4: Community Health, Safety and Security
Community Health and Safety. The Project is located within the PEOT project in Lambayeque, a large-scale agricultural area separated from population centers, with the nearest located in the Olmos district, approximately 15–25 km from the Project’s agricultural lots. Surrounding land uses are predominantly agricultural, with no residential communities in the immediate vicinity of the Project footprint. Access is provided via regional roads linking the irrigation scheme to Olmos town and surrounding districts, supporting workforce and logistics transportation.
Road Safety. Transport of goods and personnel is outsourced to third-party companies. The Company has integrated road safety considerations into its broader OHS framework, including a Road Safety Policy and related procedures, which cover vehicle inspections, defensive driving training, monitoring of drivers’ rest hours, internal rules on safe driving and transport of personnel, and incident monitoring. Contractors are also required to comply with established safety requirements, including vehicle documentation, insurance and technical inspections, among others. In addition, all vehicles are equipped with GPS trackers.
Security Personnel. Security services are delivered by an unarmed third-party contractor, at the plantations’ and camps’ gates. Fruitist has developed and implemented a Proportional Use of Force, Zero Tolerance to Retaliation and Human Rights Manual, and the security provider implements a Use of Force Procedure, both of which are largely in alignment with IFC PS4 requirements. The recruitment process for security staff and contractors involves identity verification, and all security staff receive training on the Company’s Code of Ethics and Conduct; GBV/SEAH prevention, and the Company’s security procedures.
PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources
Protection and Conservation of Biodiversity. Fruitist’s Olmos and Morrope operations are in the dry forest region of the non-endangered Sechura Desert ecoregion, in an area with historically dense algarroba forests that have been illegally eliminated in the last 30 years for charcoal production, leaving a sparse Natural Habitat landscape with a wide spectrum of degradation. The Project’s footprint does not overlap any Legally Protected or Internationally Recognized Areas.
The Project will involve the replacement of blueberry varieties in fields ranging from established to recently converted, with no further conversion currently planned. The Company has baselined (2018) and monitored the native flora and fauna of the operation to date for compliance with their environmental permits. Preliminary biodiversity values include the algarroba tree (Neltuma pallida) and Peruvian Plantcutter (Phytotoma raimondii). Preliminary screening indicates no likelihood of Critical Habitat.
As part of its environmental license, all natural (albeit degraded), habitat converted for the Morrope operation is currently being compensated through a dry forest restoration program. The program has already begun restoration in over ~150 ha and employs ~30 full-time workers dedicated to seed collection, seed propagation, planting and maintenance. Additionally, approximately 1200 ha of Fruitist property (~10%) is protected as set-asides. As per ESAP #10 and to demonstrate No Net Loss as required by PS6, the Company will develop a Biodiversity Management and Monitoring Plan to: i) quantify losses and gains to track regulatory compensation and achieve No Net Loss of Natural Habitat, ii) define management measures that include protection mechanisms for set-asides, and iii) strengthen the monitoring program through the inclusion of defined reference points and acoustic monitoring for bats.
Sustainable Management of Living Natural Resources. All of the current operations hold GLOBAL G.A.P. v6 certification and are transitioning to GLOBAL G.A.P. v7, which will be maintained going forward. The operations are also covered by AWS v2.0 certification, LEAF v16.1 certification, among several others, as well as USDA National Organic Program certification for certain areas of organic grape and blueberry production.
Supply Chain. Fruitist has a rigorous supplier evaluation process. The Company requires FSC certification for various wood products and sources coconut fiber, from Sri Lanka, which has a low deforestation risk profile.
