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: 60
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
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Project Complaint Mechanism (PCM)
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