The proposed investment is a category B project according to IFC’s Policy on Environmental and Social (“E&S”) Sustainability, because the E&S risks related to Phoenix agriculture supply chain is expected to create limited adverse E&S risks and/or impacts. Should risks or impacts emerge, they would be limited in number, site-specific, largely reversible, likely to be minimized, avoided or mitigated by adhering to generally recognized performance standards, guidelines, or design criteria.

The potential environmental, social, occupational health and safety (“OHS”) risks and impacts associated with this project relate to Phoenix’s (i) E&S capacity to implement E&S management systems to manage supply chain risks and impacts; (ii) screening for potential child labor, forced labor and significant OHS risks in its supply chain; (iii) implementation of E&S requirements in purchasing decisions and contracts; and (iv) adoption of a monitoring and verification system for supply chain risks and impacts.

Phoenix has presented plans to address these potential environmental and social impacts. In addition, to ensure that upon the implementation of the specific agreed mitigation measures, the project is in line with the applicable national laws and regulations, IFC’s Performance Standards and World Bank Group (“WBG”)’s general and sector-specific Environmental, Health and Safety (“EHS”) Guidelines, identified gaps are described in the project’s Environmental and Social Review Summary (ESRS) and in its attached Environmental and Social Action Plan.Phoenix has presented plans to address these potential environmental and social impacts. In addition, to ensure that upon the implementation of the specific agreed mitigation measures, the project is in line with the applicable national laws and regulations, IFC’s Performance Standards and World Bank Group (“WBG”)’s general and sector-specific Environmental, Health and Safety (“EHS”) Guidelines, identified gaps are described in the project’s Environmental and Social Review Summary (ESRS) and in its attached Environmental and Social Action Plan.