This is a category B project according to IFC’s Policy on Social and Environmental Sustainability and in line with the previous Tajero projects. The project is expected to have limited site-specific potential adverse environmental and social impacts that are few in number, largely reversible and that can be readily addressed through mitigation measures.

The key E&S issues include: (i) the company’s management systems and capacity to monitor and manage E&S risks and impacts; (ii) labor and working conditions including occupational health and safety (OHS) practices and supply chain management; (iii) pollution prevention and waste management practices; and (iv) life and fire safety (L&FS) and transportation safety management.

Tajero has been an existing IFC client since 2011 and the E&S performance of at closure of two previous projects (SEF Tajero Choc #29630 in 2010 (https://disclosures.ifc.org/project-detail/ESRS/29630/sef-tajero-choc) and SEF Tajero II #31438 in 2011(https://disclosures.ifc.org/project-detail/ESRS/31438/sef-tajero-ii) was satisfactory and E&S performance of the investment, fully repaid in March 2023 (Tajero WrCap #40023 in 2017 (https://disclosures.ifc.org/project-detail/ESRS/40023/tajero-wrcap), has been satisfactory based on supervision to date.

IFC’s environmental, health and safety and social (E&S) review for this proposed investment is based on the information collected during regular supervision activities of existing investment and the updated information provided by the company. IFC's appraisal included video walkovers of the diaper production facility and vehicle fleet maintenance and refueling hub located in Dushanbe on February 17, 2023 and a video conference held with the company representatives and operational teams on February 16, 2023.

The company identifies and manages E&S risks and impacts associated with its Fast Moving Consumer Goods (FMCG) distribution and diaper production operations through a basic E&S Management System and in compliant with applicable national standards and E&S regulatory permits and requirements. The company’s quality management system is certified as per ISO 9001. The ESMS consist of operational procedures such as occupational health and safety (OHS), environmental health and safety (EHS), business risk management, life and fire safety monitoring and management.

Tajero has Business Charter and Code of Conduct which outlines employment rules including a worker grievance mechanism consistent with the national labor code. The production equipment is mostly automated. The company’s Occupational Health and Safety (OHS) procedures include risk assessment, training and monitoring of occupational injuries.

The company has an established system for sorting of waste streams collected by licensed waste management contractors. The video walkover of the diaper production facilities as well as fleet maintenance and refueling hub indicated good housekeeping practices, adequate drainage and waste segregation and storage as well as relevant personal protection equipment being worn by operators (mainly ear plugs/defenders, uniform, gloves, respirators). Storage warehouse uses forklift operations. Fleet maintenance and refueling facilities have hard surfaces throughout and drainage system with oil/water separator.

Fire safety floor plans and related training records are available for each facility. The key transportation management activities include vehicle safety checks, GPS tracking, driver training and medical checks.

Tajero is to further enhance its E&S management system and apply it to the recently launched diaper production operations. For this project, Tajero will be required to (i) develop, get management approval and make publicly available an overarching EHS and HR policies in line with the IFC Performance Standards; and (ii) develop a documented ESMS supported by a Risk Assessment Procedure and Standard Operational Procedures (SOPs) for transportation and traffic safety, occupational health and safety, waste management and internal and external grievance mechanisms.