Provision of a USD 125 loan to Olam International Ltd in order to provide stable financing for the working capital needs of the company in Georgia, Egypt, Poland, Turkey and Ukraine (the "project countries").
The loan will be used to finance the sourcing, processing, storage and transportation of agricultural commodities such as nuts, grains, dairy and dried vegetables, across these countries.
The proposed project is expected to support Olam's expanding operations in the project countries by increasing the local sourcing of agricultural commodities and the export potential of these countries, further integrating them into the global economy.
Additionally, the project plans to address regional inclusion issues by assisting the company in developing and implementing capacity building programmes for suppliers and farmers in Turkey and Georgia, thus improving agricultural practices and quality standards.
OLAM INTERNATIONAL LIMITED
Olam International Ltd, established in Singapore, is one of the largest integrated commodity traders in the world. EBRD funds will be provided to Olam International, which will on-lend the loan proceeds to its subsidiaries in Georgia, Egypt, Poland, Turkey and Ukraine.
EBRD Finance Summary
Total Project Cost
Environmental and Social Summary
Environmental and social due diligence (ESDD) on this project was undertaken by staff from the Bank’s Environment and Sustainability Department and included interviews with CSR management and review of documentation provided. The findings of ESDD are that OLAM has a range of E&S policies and codes in place which are captured within the Olam Sustainability Standards Framework (OSSF). Achieving national environmental and social standards and regulations are basic minimum requirements for Olam facilities. Olam seeks to embed sustainability into all areas across its supply chain and the Company has made a commitment to have sustainable supply chains in place by the end of 2020; and the Company’s CEO has publically committed to ensuring that sustainability remains at the core of OLAMs expanding activities. E&S issues are managed by Olam by its Corporate Responsibility and Sustainability (CR&S – as termed by OLAM) function overseen by two management committees. Products and regions also have their own sustainability teams. The aim of the Company is to cascade responsibility for management of key CR&S issues throughout the Company, at all levels, whether dealing with farmer suppliers, plantations, concessions and farms, sourcing and trading, processing, logistics and offices.
Sustainability goals are set for each year and the Company reports publicly on how it has achieved compliance with the set targets. Each of the Company’s CSR managers are set sustainability KPIs, which marry with the Company’s overall targets for the year, and implementation of these targets is monitored by headquarters.
OLAM manages HR issues from both headquarters, at the level of individual units, and also within its policies and codes. While the Company does not have universally applicable HR policies, all employees and contractors are governed by the Olam Code of Conduct and International Labour Organization (ILO) compliant labour standards. The Code of Conduct includes a globally applicable Grievance Procedure which is available to anyone who wishes to raise a grievance with the Company.
Key environmental issues are dealt with in a number of different ways and managed through the Company’s policies and codes and varies depending on the nature of the business. Within the processing segment, for example, the Company utilises its “Environment Maturity Gap Tool” to assess against the key factors of management systems, leadership, compliance, continuous improvement, equipment and process design, people capability, and external stakeholders. The outcome of each gap analysis is used to develop a prioritised improvement programme for that facility. The Company is a signatory to numerous initiatives and partnerships focused on differing commodities, many of which include elements of pollution control within production and processing activities.
The Company implements a Health and Safety Policy and has a stated aim to achieve “zero harm” to workers within its operations. Key objectives of the H&S Policy are to promote consultation on matters affecting safety and health in the workplace, form safety committees to identify, assess and eliminate risks, implement a safety management programmes, establish measurable health and safety goals and targets and carry out conformance assessments using internal and external auditors.
Overall, Olam has the capacity to comply with national requirements and implement the Project in line with EBRD’s Performance Requirements. The EBRD will monitor ES performance in the project countries through annual reports provided by Olam.
The Bank is considering TC that would support primary producers who are suppliers to the Company, and to other companies in the market in Georgia and Turkey, in order to enhance the yields and quality of nuts and to acquire certifications on best agricultural practices.
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