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| BERTIN LTDA |
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| Environmental & Social Review Summary |
This Environmental and Social Review Summary is prepared and distributed in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board of Director’s decision. Board dates are estimates only.
Any documentation which is attached to this Environmental and Social Review Summary has been prepared by the project sponsor and authorization has been given for public release. IFC has reviewed this documentation and considers that it is of adequate quality to be released to the public but does not endorse the content. |
| Project number | 23792 |
| Country | Brazil |
| Sector | Food & Beverages |
| Department | Agribusiness |
| Company name | BERTIN LTDA |
| Environmental category | A |
| Status | Active |
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| Date ESRS disclosed | November 24, 2006 |
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| Previous Events | Invested: September 11, 2007
Signed: June 5, 2007
Approved: March 8, 2007 |
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| View Summary of Proposed Investment (SPI), click here |
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| Overview | Category & Applicable Standards | Key Issues & Mitigation | Community Engagements | Availability of Full Documentation |
| Overview of IFC's scope of review |
IFC’s review of this Category A project consisted of appraising technical, environmental, occupational health and safety and social development information submitted by the project Sponsor including the review of documentation provided by the sponsor regarding its operations throughout Brazil and of a tannery, currently under construction, in China.
The following site visits were carried out by social and environmental specialists:
- Bertin’s facilities in Sao Paulo state (November 2004 and May 2006);
- Bertin’s Marabá slaughterhouse and suppliers; first public consultation (April 2006);
- Bertin’s plants and farms in Mato Grosso do Sul and Goiás (May-June 2006);
- Sacre 2 – Small Hydroelectric Unit (June 2006);
- Bertin’s tanneries and shoe factory in Pará; final public consultation (July 2006);
- Pre-disclosure consultation (predicted for 19 October, 2006);
As a result of the desk review and site visits a Corporate Action Plan (CAP) was prepared to address the various issues identified.
- Environmental and Social Impact Assessment (ESIA) of its Marabá slaughterhouse and its supply chain of cattle ranchers, and the corresponding Environmental and Social Action Plan (ESAP);
- Indigenous Peoples’ Development Plan (IPDP) for Sacre 2 hydroelectric plant;
- Public Consultation and Disclosure Plan (PCDP)Public Consultation and Disclosure Plan (PCDP). |
| Project description |
A $424 million 2005-2007 expansion and modernization investment program that includes:
- increasing slaughtering capacity by 82% by 2007, including doubling the capacity of Bertin’s slaughterhouse in Marabá;
- shifting production to value-added products in beef, leather and other by-products;
- leveraging Bertin’s brand name, logistics and client base to pursue selective acquisitions; and
- establishing an independent audit and traceability system for cattle procurement to ensure compliance with World Bank/IFC environmental and social standards as well as Brazilian federal and state regulations.
The investment program includes upgrades in information technology, cost accounting and management systems, research and development. The investment will be spread around several Brazilian states where Bertin operates. |
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| Identified applicable performance standards |
- PS1. Social and Environmental Assessment and Management Systems
- PS2. Labor and Working Conditions.
- PS3. Pollution Prevention and Abatement.
- PS4. Community Health, Safety and Security.
- PS5. Land Acquisition and Involuntary Resettlement
- PS6. Biodiversity Conservation and Natural Resources Management
- PS7. Indigenous Peoples
- PS8. Cultural Heritage |
| Environmental and social categorization and rationale |
| As a result of Bertin’s purchase of its slaughterhouse in Marabá, in the state of Pará (within the Legal Amazon as described by Brazilian legislation), it was found that the potential impacts of Bertin’s cattle suppliers could be significant, and unprecedented in terms of IFC finance in the Amazon region. Issues include an increase of waste due to the expansion of slaughterhouse capacity, and potential issues associated with Bertin’s suppliers in Marabá, including deforestation, slave labor, land title fraud and rural violence. |
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| Key environmental and social issues and mitigation |
The sponsor has presented plans to address these impacts to ensure that the proposed project will upon implementation of the specific agreed measures, comply with the environmental and social requirements - the host country laws and regulations and the World Bank/IFC environment and social policies and the environmental, health and safety guidelines. The information about how these potential impacts will be addressed by the sponsor/project is summarized in the paragraphs that follow.
- PS1. Social and Environmental Assessment and Management Systems:
Bertin’s capacity to undertake adequate environmental and social management of its operations throughout Brazil was reviewed. The company undertook an Environmental and Social Impact Assessment (ESIA) of its Marabá slaughterhouse and the corresponding supply chain. This resulted in a number of management actions that Bertin has committed to implement (see ESAP summary attached). Also, the company committed to strengthen its operational structure and to develop an Environmental and Social Management System as per the attached Corporate Action Plan (CAP). The Bertin loan will have positive development impact for the Marabá region, generating job opportunities, tax revenues, diversification of the State economy and making more dynamic the meat productive chain. The project will result in stricter requirements for the supply of cattle and it is also anticipated that increased economic activity will result in increased land prices over time. To ensure that socially vulnerable groups, particularly small farmers, will also benefit from the project, mitigation and voluntary measures will be put in place (see ESAP and TA proposal).
- PS2. Labor and Working Conditions:
Occupational health and safety and labor are an important consideration in Bertin’s industrial plants. Bertin’s OHS standards are high and fully compliant with Government requirements. In certain areas of Brazil where Bertin operates, such as in the state of Pará, the key concern is to ensure the non-practice of slave labor in the supply chain. The company is committed to revise its cattle purchasing procedure to avoid buying cattle from farmers in the “black list” for slave labor.
- PS3. Pollution Prevention and Abatement:
Slaughterhouses and tanneries produce air emissions and odors, as well as wastewater discharges that may contain high concentrations of organic material. Bertin’s air emissions are not significant, but the company has adequate means to check any deviation and bring them back to norm. Bertin is implementing an investment program that will enhance its wastewater treatment facilities to bring them up to IFC standards. Bertin’s investments also include the construction of sludge digestors to reduce waste load and produce biogas to supplement its energy requirements.
- PS4. Community Health, Safety and Security:
Community health issues involve biohazards and other emergencies, which are handled adequately by Bertin. Security is a matter of concern as Bertin and suppliers has to deal with the risk of occupations and invasions by landless peasant’s movements in several of its installations. Bertin has agreed to follow principles of proportionality in the use of security personnel, also encouraging its suppliers to improve their community security performance by not purchasing cattle from farmers convicted of agrarian conflict and human rights violations.
- PS5. Land Acquisition and Involuntary Resettlement:
Illegal land acquisition and land holding issues are endemic in various areas of Brazil, particularly in the state of Pará. Numerous farmers in Bertin’s supply chain have no legal title to land or have fraudulent documentation. Bertin’s own farm titles were desk reviewed by IFC lawyers and found to be in good order. Bertin’s new purchasing procedures will include a prohibition to buy cattle from farmers convicted of wrong-doing in relation to land acquisition and land holding.
- PS6. Biodiversity Conservation:
The state of Pará, where Bertin has a slaughterhouse and two tanneries, is in the Amazon area, where protection of biodiversity is a priority. As part of its new purchasing procedures, Bertin has agreed to implement a number of management actions to reduce the risk of further/past illegal deforestation by its cattle suppliers.
- PS7. Indigenous Peoples:
The ESIA mapped out a number of indigenous peoples’ reserves in the area of influence of their Marabá plant that are well established and protected, currently not affected by cattle grazing activities. Precautionary measures have been put in place, in the cattle purchasing procedure, to avoid future interference with indigenous communities from Bertin’s suppliers. Also, in the area of influence of a small hydroelectric unit owned by Bertin, Sacre 2, there is an indigenous reserve. No resettlement was needed to protect the reserve, but Bertin is preparing an Indigenous Peoples’ Development Plan for Sacre 2, as required by IFC.
- PS8. Cultural Heritage:
Also in Sacre 2 a number of archaeological artifacts were found. Bertin, in coordination with the corresponding Brazilian authorities, arranged its rescue, which was done satisfactorily. The artifacts were placed in a museum established in Campo Novo dos Parecis and Indians are predicted to benefit accordingly. |
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| Client's community engagement |
During the preparation of the ESIA the Sponsor undertook a broad consultation process, with local, state and national dimensions. Preliminary interviews with the most relevant non-governmental organizations, social movements and State Agencies were carried out at the outset, in order to present the project and hear initial impressions. In Marabá, the three main public consultation meetings took place - one at the outset of the ESIA works (in May 2006), to present the project and launch the sub-regional consultation process, one to discuss preliminary results of the ESIA and one to present and hear feedback on the final results of the study and proposed mitigation measures (in October 2006). The sub-regional consultations took place in the area of influence of the project in the Southeast of Pará (Eldorado dos Carajás, Paraupebas, São Domingos do Araguaia, Iupiranga) and in Belém. All of these meetings were disseminated in advance in the local media (radio and newspaper), aside from direct invitations having been sent to representatives of NGOs, social movements and State Agencies. A few hundred people participated in these meetings, summing up forty entity representations engaged in the consultation process, amongst governmental and non-governmental organizations. A full report of these activities is presented in the Sponsor’s ESIA.
The company will continue to engage with the community and non-governmental institutions more broadly, in an ongoing basis, using a range of communication tools, as described in the PCDP (Public Consultation and Disclosure Plan). This is a Category A project that requires independent verification of the monitoring reports.
Further information can be found in the Sponsor’s website: www.bertin.com.br or at the following address:
Bertin Ltda.
Av. Brigadeiro Faria Lima 2012, 5th Floor
01452, São Paulo, SP Brazil |
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| Availability of Full Documentation |
The complete set of Category A documentation is available from the World Bank Infoshop:
World Bank Infoshop
1818 H Street, N.W., Room J1-060
Washington, DC 20433 USA
Telephone: (202) 458-4500
Fax: (202) 522-1500
E-mail: pic@worldbank.org
Hours of Operation: 9:00am to 5:00pm (Monday through Friday)
The complete set of Category A documentation is also available locally at the following locations:
- Lins (SP) – Sede do Grupo Bertin
Bertin Ltda
Parque Industrial
Caixa Postal 211
16404-110
- Belém – Secretaria Executiva de Ciência, Tecnologia e Meio Ambiente
Travessa Lomas Valentinas, 2717, CEP: 66095-770. Belém-PA.
- Marabá – Secretaria Municipal de Meio Ambiente
Contato com Antônio Rosa
Av. Transamazônica 21 a 23, andar superior,
Cidade Nova, Marabá, PA, Cep 68501-001.
- Brasília – Escritório do Banco Mundial
Public Information Center
Contato com Vânia Amadeu
SCN. Qd. 2, Lt. A, Ed.
Corporate Financial Center, Cj. 303/304
Brasília, DF 70712-900
Telephone: (61) 3329 1000
Fax: (61) 3329 1010
- Marabá – Biblioteca da Universidade Federal do Pará
Campus Universitário, Folha 17, Quadra e Lote Especiais,
Campus II, UFPA, Cep 68501-970, Marabá, PA |
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| Information Disclosed |
This ESRS was ammended on March 2, 2007 to add the English and Portuguese Addenda.
This ESRS was ammended on December 5, 2006 to consolidate the Disclosure Package in English.
This ESRS was released on November 24, 2006. It was amended to include the English version of the ESAP on November 29, 2006. This file is available as an attachment.
The following complete set of Category A documentation regarding the BERTIN LTDA has been released locally and to the World Bank Infoshop:
For local disclosure (in Portuguese): (see attachment Pacote de Divulgacão below)
- Environmental and Social Review Summary;
- Full text of the Environmental and Social Impact Assessment (ESIA) for the Marabá slaughterhouse and its cattle supply;
- Environmental and Social Action Plan (ESAP) for the Marabá slaughterhouse;
- Corporate Action Plan (CAP);
- Pollution Prevention and Abatement Plan (PPAP);
- Indigenous Peoples Development Plan (IPDP) for the indigenous community neighboring the Sacre 2 hydroelectric plant;
- Public Consultation and Disclosure Plan (PCDP).
The disclosure documentation will also be published in Portuguese at the Bertin web site: www.bertin.com.br.
For InfoShop disclosure (in English): (see attachment Disclosure Package English below)
- Environmental and Social Review Summary (ESRS);
- Executive Summary of the ESIA/ ESAP for the Marabá slaughterhouse and its cattle supply;
- Corporate Action Plan (CAP);
- ESAP for the Marabá slaughterhouse and its cattle supply chain;
- Pollution Prevention and Abatement Plan (PPAP);
- Indigenous Peoples Development Plan (IPDP) for the indigenous community neighboring the Sacre 2 hydroelectric plant;
- Public Consultation and Disclosure Plan (PCDP).
Background information:
http://www.ifc.org/ifcext/disclosure.nsf/Content/Brazil_Bertin
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