Investing in transparent enterprises in Armenia

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The EBRD is assisting a glass manufacturer in protecting its workers and the environment.

To support the growth of Armenian small and medium-sized businesses in a sustainable and responsible way, the EBRD doesn’t just provide financing to creditworthy businesses – it also helps them improve their transparency and corporate governance.

Environmental and social risk analysis

One example of such a business is Saranist, one of Armenia’s leading glass bottle and jar manufacturers. The EBRD has been helping the company to carry out an environmental and social analysis and to put in place measures to ensure that it can address potential labour and environmental risks linked to its business.

Thanks to technical cooperation funded by the EBRD’s Early Transition Countries(ETC) Fund, independent auditors inspected every production phase, from the quartz sand quarries providing the raw material to the glass factory, as well as interviewing Saranist’s employees.

The audit assessed compliance with laws and regulations on environmental protection in areas such as pollution, waste and use of natural resources, as well as social matters, including employee benefits, health and safety and public grievance procedures.

Responsible management

As a result, the company was able to include environmental and social protection measures into its policies and management system and to ensure that there is public dialogue on environmental and social concerns relating to its operations.

Moreover, to strengthen the company’s accountability, the ETC Fund also funded Saranist’s financial due diligence and helped it improve its reporting system.

Saranist’s commitment to improving its transparency has secured the EBRD’s support through two loans for a total of US$ 6.5 million. These loans are helping Saranist to expand and diversify its glass production and increase export potential.

And, in line with the company’s strengthened environmental efforts, a new, energy efficient furnace, being installed thanks to the loan proceeds, will improve the glass quality while reducing production waste.

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