Environmental and Social Due Diligence for Project Finance | SLP Cambodia
Environmental & Social Due Diligence and ESMS for Animal Feed Manufacturing in Cambodia
SLP Environmental conducted environmental and social due diligence (ESDD) and developed an Environmental and Social Management System (ESMS) for an animal nutrition manufacturer in Cambodia seeking a loan from an international financial institution. The assessment reviewed the company’s compliance with the lender’s environmental and social safeguards and applicable Cambodian requirements, identifying risks and preparing a prioritised Corrective Action Plan (CAP). SLP also prepared the ESMS manual and provided online training to senior facility managers in its implementation, monitoring and ongoing evaluation.
The assignments Safeguards Requirements comprised of:
- ADB Safeguard Policy Statement (2009);
- WBG Environmental, Health and Safety (EHS) General Guidelines;
- EBRD Sub-sectoral Environmental and Social Guideline: Animal Feed Processing;
- Applicable national laws and regulations pertaining to environment, health, safety, social and labour;
- International Conventions and Treaties ratified by Cambodia; and
- Relevant ILO Core Labour Standards.
The primary objectives of the ESDD assignment were to:
- Assess the Company’s conformance status with respect to E&S Safeguards Requirements, identify any gaps and assign an appropriate risk rating;
- Recommend appropriate corrective actions (CA’s) for medium and high risk findings to bridge gaps and align Company performance with SR;
- Set timelines for implementation of CA’s based on assigned priority and specify appropriate Completion Indicator to verify gap closure;
- Prepare an Environmental and Social Compliance Audit Report including a bespoke Corrective Actions Plan (CAP),
- Assess the capacity and resources of the Company to implement the CAP requirements; and
- Prepare the Target Company’s Environmental and Social Management System (ESMS) Manual and provide training in its implementation and ongoing monitoring and evaluation.
SLP specialises in performing ESDD on behalf of project lenders/ investors and project developers and has completed multiple and complex due diligence assignments across multiple business sectors and ASEAN jurisdictions.