Environmental and Social Due Diligence Assessment

Environmental and Social Due Diligence Assessment

Biogas Facility, Battambang, Cambodia

SLP Environmental was appointed by an international banking group to conduct and report a pre-investment Environmental and Social Due Diligence (ESDD) assessment for a biogas production facility located in Battambang Province, Western Cambodia. Our client was considering investing in an expansion of the Project and in accordance with their corporate due diligence and corporate social responsibility policies required an ESDD assessment to be conducted with the primary objective of identifying whether there were any potential adverse environmental or social impacts associated with the activities being undertaken at the facility that could have a material effect on the transaction.

The study was conducted and reported in accordance with the framework presented in ISO: 14015 (2001) – Environmental Management; Environmental Assessment of Sites and Organizations and was also benchmarked against the relevant International Finance Corporation (IFC) Performance Standards (2012), IFC Environmental Health and Safety General Guidelines (2007) for the Equator Principles (2013).

The scope of works comprised a detailed inspection of the facility and its environs, interviews with key informants and stakeholders, a review of the facilities records, desk study and research pertaining to the physical and biological environment, historic landuses, protected areas, socio- economic profile and the environmental and social legislative context. The scope of works also included an environmental impact assessment screening study.

The study included an assessment of the environmental sensitivity of the study site area and a qualitative risk assessment for each identified potentially vulnerable environmental receptor and an overall environmental risk rating for the study site. The report clearly identified the primary findings with respect to labour and working conditions, pollution prevention, occupational and community health and safety, biodiversity/conservation and environmental impacts.

The report provided clear and concise recommendations with respect to the corrective actions required to address the identified deficiencies in environmental and social management practices and mitigate the adverse environmental and social impacts of the Project activities.