Environmental & Social Due Diligence & ESMS

Environmental & Social Due Diligence & ESMS

Animal Nutrition Manufacturing Company, Cambodia


SLP Environmental Co., Ltd was appointed by the Target Company on behalf of an International Financial Institution (IFI) to perform environmental and social due diligence (ESDD) on an Animal Feed Mill located in Cambodia. The Target Company is seeking a loan from the IFI, and as part of the transaction process was required to appoint an external expert to undertake an environmental and social compliance audit (ESCA) of the Facility against the Lenders environmental and social (E&S) safeguards requirements. SLP conducted the ESDD, developed the Targets’ Environmental and Social Management System (ESMS) and provided training on its implementation, monitoring and ongoing evaluation to senior managers. 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 over one hundred due diligence assignments across multiple business sectors and ASEAN jurisdictions.