8.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	8.0

* These investment figures are indicative

IFC expects the Project to generate positive climate mitigation effects by promoting agroforestry in the supply chain and provide access to market and technical assistance for farmer suppliers. At the market level, IFC expects the Project to increase the competitiveness of Brazil’s cocoa processing industry by supporting an innovative player focused on sustainability.

IFC is providing both financial and non-financial additionality. Financial additionality comes from the provision of IFC own account equity. Non-financial additionality comes from standard setting in terms of supporting the Company to implement good practice E&S standards and corporate governance standards, as well as knowledge, innovation and capacity building in upstream work and risk management.

 This is a Category B project according to IFC’s 2012 Policy on Environmental and Social Sustainability due to limited and site-specific E&S risks and impacts associated with the expansion of the processing capacity at three existing cocoa processing plants. These can be avoided or mitigated by adhering to Good International Industry Practices (GIIPs). The sourcing of cocoa beans in the states of Para and Bahia is considered of low risk as the producers are presently on areas of either recuperated former degraded pasture (converted in the 1980’) and consolidated agricultural areas. These are not regions of high risk for harmful child and forced labor. As per its risk screening platform for its cocoa beans sourcing, Gencau has and will continue to avoid any deforestation and habitat conversion and/or overlapping with Indigenous Peoples land and Quilombolas communities. Key E&S risks and issues for this investment are: (i) implementation effectiveness of Gencau E&S management System (ESMS) at its cocoa processing facilities and farms, including E&S policies, risk assessment studies, E&S management plans and SOPs during operational phase, E&S organizational capacity/competency; (ii) fair treatment and safe working conditions for employees and contractors, including implementation of HR policies and procedures aligned with PS2 requirements; (iii) emergency preparedness and response; (iv) resource efficiency and GHG emissions; management of air emissions, noise, solid/hazardous waste, and effluent; (v) community safety, traffic and use of security forces; (vi) stakeholder engagement, including community grievance mechanism.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.