Provision of a long-term loan of up to EUR 90 million to Johnson Matthey Plc (the "Company"), a speciality chemicals company, for the construction of an electric vehicles battery cathode material factory in Konin, Poland (the "project").
The project supports the company's investment plan to produce ultra-high energy battery materials in Konin, Poland, and to supply major customers in the battery electric vehicle supply chain.
ETI score: 70
The transition impact of the proposed project will be derived from the Green quality. The project is expected to result in major CO2 emission savings through energy efficiency gains of a green product (electric vehicle batteries) replacing conventional internal combustion engines.
JOHNSON MATTHEY PLC
Johnson Matthey Plc is listed on the London Stock Exchange and constitutes part of the FTSE 100 Index.
EBRD Finance Summary
Sources of additionality are related to the financing structure and/or the project's potential to enhance practices at the sector or country level.
Environmental and Social Summary
Categorised B (2014 ESP). The Environmental and Social Due Diligence (ESDD) concluded that the environmental and social (E&S) impacts associated with the Project are site specific, and readily identified and addressed through established mitigation measures.
The Bank Project is a new cathode materials plant in Konin, which is a greenfield development, within a brownfield setting using land used in the past by Huta Aluminium Konin. The Project has been subject to an EIA process undertaken in line with Polish requirements, which follow EU standards and an assessment has been made of contamination risks. It will meet the Bank's Performance Requirements (PR) through implementation of corporate management systems and adherence to EU and Polish environmental and labour laws.
An in-house ESDD was undertaken to review current operations and this included a site visit to the company's operations in Gliwice, the site of an ongoing new development of car catalytic converters, and interviews with EHS and HR management teams. An independent consultant is undertaking an additional review of the permit and other local regulatory requirements including the EIA.
The on-going ESDD concluded that the Company has a well-developed EHS and HR systems, and the capacity to fully implement the Bank's PRs. Environmental and occupational health and safety issues are managed through an integrated management system (IMS) which will be certified to ISO 14001 and 45001 standards at all operations. The necessary resources and capacities are in place to implement the IMS.
In terms of environmental procedures, the Company follows the requirements of Polish Regulatory Framework, which is complaint with EU Environmental Directives. The Company has undertaken EIAs for the various stages of investment and obtained relevant permits from Competent Authorities. The site in Gliwice is located within a large industrial zone, and a number of companies located in the vicinity share the same infrastructure, such as a storm-water system and access roads. The new car catalysts plant will be commissioned in 2020.
The Company is implementing EU waste directives and is also developing a circular economy strategy to ensure ongoing compliance. The Company is and will implemented a corporate HR polices which include systematic HR audits to address potential labour issues at all its operations in Poland.
The Bank will update the PSD based on the results of the ESDD and ESAP and include a Non-Technical Summary (NTS).
Technical Cooperation and Grant Financing
Company Contact Information
PSD last updated
08 Jan 2020
Further information regarding the EBRD’s approach to measuring transition impact is available here.
For business opportunities or procurement, contact the client company.
For business opportunities with EBRD (not related to procurement) contact:
Tel: +44 20 7338 7168
Specific enquiries can be made using the EBRD Enquiries form.
Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.
More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to firstname.lastname@example.org. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.
Access to Information Policy (AIP)
The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
Specific requests for information can be made using the EBRD Enquiries form.
Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email email@example.com to get guidance and more information on IPAM and how to submit a request.