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The project has been screened B/1.
The Bank will provide financing to develop some of Lesaffre’s yeast operations
in the region, both via past and future acquisitions as well as upgrade and
development at its existing subsidiaries in Kurgan and Uzlovaya in Russia and
Krivoi Rog in Ukraine. Given that this project involves the existing
facilities an environmental audit has been required. Environmental issues
associated with the development of the facilities can be readily identified,
assessed and mitigated, therefore the project also required an environmental
analysis.
Key environmental issues and mitigation
The environmental
investigations demonstrate that the project will have limited impacts on the
environment all of which can be readily identified, assessed and mitigated.
Key environmental issues associated with yeast manufacturing include the
generation of significant quantities of waste water and the usage of a large
amounts of energy for heating and processing purposes. The Company is well
aware of the environmental, health and safety issues associated with its
activities and has developed a range of solutions to address those issues.
Discussions have been held with the local authorities to agree with the
operational parameters for the facilities and to obtain the required permits
for operation.
Prior to the purchase, technical experts from the Company assessed the current
status and reviewed improvements required to bring the facilities in to line
with the Company's standards and local requirements. These investigations
included consideration of key environmental issues and an assessment of
investments required to ensure that there will be no negative impacts on the
environment. As part of this assessment the Company also looked for
opportunities to improve the performance of the facilities to, for example,
reduce the amount of energy utilised by the Company so minimising potential
impacts.
Environmental action plan
The proposed environmental
investments and schedule have been presented by the Company to the Bank and
will be part of their Agreements, to ensure over time compliance with EU
environmental, health and safety standards.
Monitoring and reporting
The Company will monitor the
environmental impact of its operations in accordance with national
authorities’ requirements. The Bank will monitor the Company's compliance with
the applicable environmental requirements during the lifetime of the Project
by reviewing annual environmental status of implementation of environmental
mitigation and improvement measures. The Bank’s representatives will also
conduct periodic site supervision visits when deemed appropriate.
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