The EBRD is considering acquiring a minority stake in Paşabahçe Cam Sanayii ve Ticaret A.Ş., the glassware subsidiary of Türkiye Şişe ve Cam Fabrikaları A.Ş. and one of the leading glassware producers in the world. The investment will be the first equity investment of EBRD in the Turkish glass industry.
The proceeds of the financing will be used by Şişecam towards its investment needs in 2014-2016 in the countries where the EBRD invests.
The project represents a good opportunity for the Bank to achieve strong transition impact in Turkey, particularly through supporting improvements in corporate governance and business conduct in relation to inclusion and gender equality.
1. Improvement of corporate governance standards
In collaboration with Pasabahce a corporate governance action plan is developed, which will improve the corporate governance standards of the company in line with the best practices.
2. Setting standards for business conduct in relation to inclusion and equal opportunities
Systemic inclusion impact in relation to gender will be achieved through the introduction of improved corporate standards and practices and the achievement of the FEM equal opportunities accreditation to increase the number of women accessing training and employment opportunities in the company. By promoting these new corporate standards through the company’s Sustainability and Annual Reports, the project will seek to create a demonstration effect across the glass and glassware sectors in Turkey, where gender gaps are large in relation to labour practices and employment.
Paşabahçe Cam Sanayii ve Ticaret A.Ş., incorporated in Turkey, is the largest glassware producer in Turkey and one of the largest in the world. The company is majority owned by Türkiye Şişe ve Cam Fabrikaları A.Ş.
Şişecam, which is incorporated in Turkey and operates in 13 countries, is one of the largest glass producers in the world. The Company is active in all key areas of glassmaking as well as production of glass chemicals.
Category B. environmental and social issues associated with financing of a glassware company can be assessed and mitigated based on an Environmental Social Due Diligence (ESDD). The Bank provided a corporate loan to the Sisecam Group in 2014, preceded by a comprehensive corporate ESDD undertaken by an independent consultant. Based on the ESDD a corporate Environmental and Social Action Plan (ESAP) was agreed with the Company that covered all key operations at the glassware and container glass divisions. As part of the current equity project of the glassware division, an update was undertaken of the ESDD by the Bank. This confirmed that the company has the institutional capacity to fully implement the Bank’s Performance Requirements and is on track within implementing existing ESAP. To date the Company has proved good reporting and has been implementing existing requirements at the various operations.
The glassware facilities are well managed with a good Environmental, Health and Safety (EHS) management system, mostly certified to ISO 14001 and OHSAS 18001 standards. There is an ongoing corporate program to ensure all sites are soon certified. The sites are compliant with national legislation and none of the sites are located in sensitive areas. As identified when the corporate loan was extended, a number of energy efficiency and environmental measures need to be considered at the facilities to attain best available technologies as defined by the Industrial Emission Directive (IED). These are mainly associated with NOx compliant best available technologies and dust reductions, which are currently not required in Turkey. Nevertheless, based on the agreed ESAP, the company is developing a program to implement best available technologies in the line with the EU Industrial Emission Directive at the existing facilities as part of an on-going modernization program over the next 4-10 years. The implementation of the ESAP will allow for future attainment of EU standards at all facilities as they are systematically upgraded.
An additional independent audit of the Group to be undertaken in 2015 and a corporate social responsibility report to be published by 2014. This will cover glassware, container as well as float decisions of the company. The Bank will continue to monitor the implementation of existing projects throughout the Group.
Technical Cooperation Funds from the EBRD Gender Advisory Services provided by the Shareholder Special Fund will be used for the promotion of gender equality in the company and industry.
Türkiye Şişe ve Cam Fabrikaları A.Ş.
İş Kuleleri, Kule 3, Kat: 23
34330 4. Levent, İstanbul TURKEY
Phone: +90 212 3505050
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