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Screening categories and rationale for classification
A retail development such as this project has some environmental impacts which
can be readily identified and prevented through adequate mitigation measures.
For the above reasons, the EBRD has classified the project B/0 and required an
Environmental Analysis of the project. In accordance with the disclosure
requirements in EBRD’s Environmental Policy for B-level projects, an
environmental review summary for the project was available at Kaufland
Polska’s headquarters for public review and comment and a notice hereto was
given t by the Sponsor through a Polish newspaper Gazeta Wyboecza Komunikaty
on December 7th 2004.
Information reviewed during the environmental appraisal
The environmental due diligence has been based on the completed Environmental
Questionnaire and follow-up information gathering and analysis through
communication with the Sponsor.
Environmental Impacts and mitigation measures
Potential environmental issues associated with construction of discount
hypermarkets are as follows:
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corporate environmental policy
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environmental due diligence procedures for site selection
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safety of construction materials
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environmental, health and safety issues associated with construction
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environmental and life and fire safety issues associated with the operation of
the retailers.
The due diligence showed that the Sponsor is capable of addressing the above
issues. The Sponsor is required to ensure each store will meet the relevant
Polish and EU environmental, health and safety standards and requirements as
well as to submit an annual environmental, health and safety report to the
Bank. The Company undertakes environmental impact assessments (EIAs) as
required under Polish regulations for such developments.
Labour Issues
The company is required to observe applicable Polish laws and standards on
employment, as well as standards consistent with the Conventions of the
International Labour Organisation relating to the employment of children and
young people, discrimination at work, and forced labour.
Following various investigations of the Polish National Labour Inspectorate
(NLI) in the retail sector, including Kaufland Polska, the EBRD engaged an
independent expert on labour rights, with whom the Bank carried out a
monitoring visit in June 2005. The monitoring process also included meetings
with the Polish National Labour Inspectorate (NLI) and trade unions. The
Company has declared that it now complies with the requirements set out by the
NLI and has revised it s operations and management programmes.
The Company reports that since the Bank’s monitoring visit in 2005, it has
revised its policies and it has implemented, among others:
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New company procedures for the recording and verification of working hours,
overtime and remuneration throughout the company
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Provision of training for store managers on labour law, work time issues and
people management skills
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Changes to standard contracts in line with recommendations of Polish labour
authorities
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Adoption of a new employee communication policy
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A reduction in the number of employees engaged through agencies and an
increase in those directly employed.
The Bank has been in contact with both NLI and Kaufland Polska management in
relation to the actions taken by the Company, and results of NLI inspections
undertaken in first half of 2006 indicate that there are only minor non
compliance issues.
Monitoring
The Bank will continue to evaluate the project’s compliance with the
applicable environmental, health, safety and labour requirements during the
lifetime of the project by reviewing annual environmental reports (AER) and
any relevant information prepared for the project covering the status of
implementation of environmental and labour mitigation measures as well as
visits to the project. The first annual report for 2005 has been received by
the Bank, and this has summarised the Company’s operations and compliance with
national and international standards. The Bank is in contact with the Company
following the report in order to clarify some issues and further strengthen
the reporting process.
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