The key E&S risks considered during appraisal were: (i) Zalar Agri’s EHS management system and technical capacity for its effective implementation, monitoring and performance to date in terms of EHS and social management; (ii) water and energy use and efficiency; (iii) solid and liquid waste management, and wastewater treatment; (iv) pesticides and fertilizer management; (v) labor and working conditions of both permanent and seasonal workers; (vi) life and fire safety; and (vii) certification to sustainable management practices. Land acquisition and impacts to biodiversity were also considered as part of the due diligence process.

The project is categorized as category B according to IFC’s 2012 Policy on Environmental and Social Sustainability because it has limited adverse environmental or social risks or impacts that are few in number, generally site-specific, largely reversible and readily addressed through the application of good international industry practice (GIIP); and, specific mitigation measures. In this case, completion of the actions in the IFC Environmental and Social Action Plan (ESAP) will ensure the Project is in line with the applicable national laws and regulations, IFC’s Performance Standards and World Bank Group (“WBG”) general and sectorspecific Environmental, Health and Safety (“EHS”) Guidelines. Gaps and mitigation measures are described in the following paragraphs and in the attached Environmental and Social Action Plan.