MAJ INVEST EQUITY SOUTHEAST ASIA II K/S · 6 MAJ INVEST EQUITY SOUTHEAST ASIA II K/S • CSR REPORT...

MAJ INVEST EQUITY SOUTHEAST ASIA II K/SCSR Report 2015

Maj Invest Equity Southeast Asia II K/S | Gammeltorv 18, 1457 København K | Tel. +45 33 38 73 00 | www.majinvest.com | CVR 36 44 49 83

2 MAJ INVEST EQUITY SOUTHEAST ASIA II K/S • CSR REPORT 2015

TABLE OF CONTENTS

INTRODUCTION 4

The Fund’s approach to CSR 4

CSR Reporting and implementation 4

RESULTS 5

CONCLUSION 6

APPENDIX 1

Berrybenka 7

Action Plan 9

APPENDIX 2

International standards 25

APPENDIX 3

Responsible Investment Policy for Maj Invest Southeast Asia II K/S 26

MAJ INVEST EQUITY SOUTHEAST ASIA II K/S • CSR REPORT 2015 3

The purpose of this report is to present the CSR status of the portfolio companies of Maj Invest Equity Southeast Asia

II K/S (SEA II or the Fund) during 2015. This is the first CSR Report of the Fund.

According to the Limited Partnership Agreement for Maj Invest Equity Southeast Asia II K/S, all investments must

be made in accordance with the Responsible Investment Policy of the Fund, see Appendix 3.

This policy is based on the internationally recognised principles of the UN Principles for Responsible Investment

(UN PRI) constituting the framework for the environmental, social and governance (ESG) requirements for the

Fund. Additionally, the Fund promotes the UN Global Compact principles with the addition of good corporate gov-

ernance and animal welfare.

THE FUND’S CSR APPROACH

The Fund’s CSR approach is based on the cooperation with joint owners of the Fund’s portfolio companies. As part

of the due diligence process prior to investing, the Fund assesses the CSR status of the company in target, and based

on the assessment a CSR Action Plan is developed in accordance with relevant local legislation and international

standards. Additionally, a CSR appendix is in most cases an integrated part of the shareholders’ agreement between

the Fund and the additional owners of the company.

The portfolio companies are required to complete the actions in accordance with the CSR Action Plan as decided

at the time of investment and during the investment period. The Fund’s representative on the company’s Board of

Directors monitors the efforts and results continuously. If necessary, the Fund may require that external special-

ists assist the company with the implementation of the CSR Action Plan.

The first priority is that the portfolio companies of SEA II are in compliance with all local legal and regulatory re-

quirements regarding CSR at any time. Further, the second priority is that the portfolio companies shall work to-

wards being in compliance with relevant international CSR standards, and that these international standards shall

be used as benchmarks.

CSR REPORTING AND IMPLEMENTATION

According to the Fund’s Responsible Investment Policy, an annual CSR Status Report shall be prepared by the di-

rectors of each portfolio company describing the current CSR status of the company. The 2015 CSR Report and Ac-

tion Plan is based on the CSR assessment carried out by the Sustainability Consultance PT. ERM Indonesia (ERM).

Introduction


ResultsThe Fund has invested in one company at year-end 2015, the Indonesian e-commerce company PT. Berrybenka (Ber-

rybenka or the company). It is the first time for Berrybenka to be assessed by a consultancy company on CSR, and

the e-commerce company has been very co-operative in its approach to the CSR assessment. The standards for the

assessment include a number of Indonesian regulations and the internationally recognised IFC Performance Stand-

ards (International Finance Corporation). The IFC Performance Standards are explained further in Appendix 2.

The audit carried out in September 2015 by ERM identified a number of key issues with a level of priority ranging

from low to high.

� 8 issues of low priority were identified during the assessment of which 2 were related to national legislation

and 6 to the IFC Performance Standards.

� 1 issue of medium priority was identified which was related to the IFC Performance Standards, and

� 10 issues of high priority were identified of which 4 were related to national legislation and 6 to the IFC Per-

formance Standards.

The areas in need of improvement are the management of environmental and social risks and impacts; resource

efficiency and pollution prevention as well as labour and working conditions. The issues with high priority con-

cern the establishment of an Environmental Management and Monitoring Programme, the formation of a Health

and Safety Committee, the handling of waste and the placement, the maintenance of fire extinguishers, an emer-

gency response plan, an update of the HR policy, the availability of a grievance mechanism and the identification

of potential hazards to workers and the provision of a first aid kit. All the identified issues are described in the Ac-

tion Plan Appendix 1, including a description of the assessment approach.

Due to the issues identified during the assessment, the overall CSR compliance of Berrybenka is medium.

A CSR overview of the Fund is shown in the table below:

Campany name Sector CSR focus areasLevel of overall

CSR compliance

PT. Berrybenka E-commerce

� Management of environmental and social risks

and impacts

� Resource efficiency and pollution prevention

� Labour and working conditions

Medium


CSR management and implementation is a moving target where companies on an ongoing basis have to revise

their policies and action plans in accordance with national and international standards. The Fund is committed

to working with the portfolio companies on a long-term basis to improve their CSR performance, but it is also im-

portant to acknowledge that immediate changes can be difficult to achieve in frontier markets where CSR is a rel-

atively new concept.

The table on the previous page shows a rating of the company on CSR issues based on the CSR audit. As the table in-

dicates Berrybenka is rated medium in terms of overall CSR compliance. As such, the CSR compliance of the port-

folio company of 2015 is considered satisfactory, but in 2016, Maj Invest will continue to work with the company to

implement relevant measures to improve their CSR policies and approach.

If you require any further information about the Fund’s CSR policy and implementation, please do not hesitate to

contact us.

Copenhagen, 16 March 2016

Kasper Svarrer Domingo Alonso Regitze Makwarth Olsen

Partner Partner Manager - Sustainability Manager

Maj Invest Holding A/S Maj Invest Vietnam Maj Invest Holding A/S

[email protected] Management Consultancy LLC [email protected]

Conclusion


COMPANY OVERVIEW

Berrybenka (the company) is a leading fashion e-commerce business based in Indonesia and was founded in 2012.

The company operates Berrybenka.com; an online shopping site renowned for fashion and beauty in Indonesia

with a concept similar to department stores. Berrybenka sells more than 1,000 local and international brands, in-

cluding the company’s in-house label.

To support its operation and production Berrybenka has a head office in Jakarta. The head office consists of ap-

proximately 180 employees and serves as a center for marketing, customer services and control of company opera-

tions. The head office occupies 3 floors located in Slipi Tower, West Jakarta, Indonesia. The company also utilises a

4,500m2 warehouse that employs approximately 120 workers responsible for quality assurance and control, pack-

aging and shipping. The warehouse is located in a complex in Serpong, Tangerang and is rented from a third party.

LEGAL FRAME AND INTERNATIONAL STANDARDS

The applicable standards for this assessment which have been adopted by ERM include:

Relevant Indonesian Legislation

� Indonesian Government Regulation No. 47 / 2012 on Corporate Environmental and Social Responsibility

� Republic of Indonesia Act No. 13/2003 on Labor

� Ministry of Environmental Regulation No. 13 Year 2010 regarding Environmental Management and Monito-

ring Program

� Republic of Indonesia Law No. 18 of 2008 on Waste Management

� Government Regulation No. 101 Year 2014 on Hazardous Waste Management

� Regulation of the Minister of Manpower and Transmigration No. PER.04 /MEN / 1980 on the Terms of Instal-

lation and Maintenance of Fire Extinguisher

� Ministry of Manpower Decree No. PER-04/MEN/1987 Regarding the Health and Safety Committee.

IFC Performance Standards 2012

No. Performance Standards Applicable Non-Applicable

1. PS 1: Assessment and Management of Environmen-

tal and Social Risks and Impacts

2. PS 2: Labor and Working Conditions

3. PS 3: Resource Efficiency and Pollution Prevention

4. PS 4: Community Health, Safety, and Security

5. PS 5: Land Acquisition and Involuntary Resettlement

6. PS 6: Biodiversity Conservation and Sustainable

Management of Living Natural Resources

7. PS 7: Indigenous Peoples

8. PS 8: Cultural Heritage

APPENDIX 1 Berrybenka


APPROACH

A high level desk based screening of available documentation on CSR (environmental, social and health & safety)

matters relating to the project was undertaken by ERM. This included reviewing Berrybenka’s company profile

and the 2015 – 2017 Human Resources Procedure which encompasses aspects of terms of employment, promotions

and career development, working hours, leave, grievance resolution, wages and bonus, health insurance and work-

ing dismissal.

Additionally, a one day site visit was conducted to the company head office and warehouse to undertake observa-

tions and interviews with key environment, safety and human resources personnel. Key personnel interviewed

during the site visit included:

� Putri C. Sari - Human Resource Manager. Responsible for handling all issues concerning workers and at the

present also in charge for public relations

� Lily Ismiyati – Operation Manager. Responsible for all operation and management of Berrybenka warehouse

� Workers in the warehouse

The assessment centred around four areas: assessment and management of environmental and social risks and

impacts; ressource efficiency and pollution prevention; labour and working conditions and corporate social re-

sponsibility.

ACTION PLAN

Based on the findings discovered during the assessment an Action Plan has been developed. The Action Plan in-

cluding a categorisation of urgency and a timeline is presented in the tables on the following pages.


Tab

le 1

: Ali

gnm

ent w

ith

th

e A

pp

lica

ble

Nat

ion

al R

egu

lati

ons

& R

ecom

men

dat

ion

Sco

pe/

Ref

eren

ceR

equ

irem

ent S

um

mar

yF

ind

ings

Su

mm

ary

Rec

omm

end

atio

n/A

ctio

n P

lan

Lev

el o

f pri

orit

yT

imel

ine

Ass

essm

ent a

nd

Ma

na

gem

ent o

f En

viro

nm

enta

l an

d S

ocia

l Ris

ks

an

d I

mp

act

s

Min

istr

y of

En

viro

n-

men

tal R

egu

lati

on N

o.

13 Y

ear

2010

reg

ard

ing

En

viro

nm

enta

l Man

-ag

emen

t an

d M

onit

or-

ing

Pro

gram

An

y bu

sin

ess

and

/or

acti

v-it

ies

that

do

not

hav

e si

g-n

ific

ant i

mp

acts

to t

he

en-

viro

nm

ent m

ust

hav

e an

E

nvi

ron

men

tal M

anag

e-m

ent a

nd

Mon

itor

ing

Pro

-gr

am.

Ber

rybe

nk

a is

un

awar

e of

an

y en

viro

nm

enta

l doc

um

ents

(s

uch

as

En

viro

nm

enta

l Man

-ag

emen

t an

d M

onit

orin

g P

ro-

gram

– U

KL

/UP

L)

that

th

e w

areh

ouse

or

the

own

er o

f th

e w

areh

ouse

com

plex

mig

ht

hav

e.

Ber

rybe

nk

a sh

all l

iais

e w

ith

th

e w

are-

hou

se c

ompl

ex m

anag

emen

t to

obta

in

envi

ron

men

tal d

ocu

men

ts a

nd

en

sure

th

at t

he

requ

irem

ents

sta

ted

in

th

e d

oc-

um

ents

are

met

by

the

war

ehou

se.

On

ce B

erry

ben

ka

has

obt

ain

ed p

erm

its

and

en

viro

nm

enta

l doc

um

ents

fro

m

the

war

ehou

se c

ompl

ex m

anag

emen

t,

Ber

rybe

nk

a sh

all c

ond

uct

man

agem

ent

pro

gram

s as

sta

ted

in

th

e p

erm

it a

nd

d

ocu

men

t.

Ber

rybe

nk

a sh

all a

lso

con

du

ct m

onit

or-

ing

and

mea

sure

men

t of t

he

man

age-

men

t pro

gram

s.

Hig

hT

o be

com

-m

ence

d i

m-

med

iate

ly

Min

istr

y of

Man

pow

er

Dec

ree

No.

PE

R-0

4/M

EN

/198

7 re

gard

ing

Hea

lth

an

d S

afet

y C

om-

mit

tee.

An

y w

ork

ing

com

pan

y or

pl

ace

wit

h 1

00 e

mpl

oyee

s or

mor

e m

ust

hav

e a

Hea

lth

an

d S

afet

y C

omm

itte

e.

Ber

rybe

nk

a em

ploy

s a

to-

tal o

f ap

pro

xim

atel

y 30

0 em

-pl

oyee

s (1

80 e

mpl

oyee

s in

th

e h

ead

off

ice

and

120

em

ploy

ees

in t

he

war

ehou

se).

How

ever

, B

erry

ben

ka

doe

s n

ot h

ave

a H

ealt

h a

nd

Saf

ety

Com

mit

tee

in p

lace

.

Ber

rybe

nk

a to

form

a H

ealt

h a

nd

Saf

ety

Com

mit

tee

both

in

th

e m

ain

off

ice

and

w

areh

ouse

. Th

e co

mm

itte

e is

a c

olla

bo-

rati

on b

etw

een

em

ploy

er a

nd

em

ploy

ee

to d

evel

op c

o-o

per

atio

n a

nd

eff

ecti

ve

par

tici

pat

ion

in

im

plem

enti

ng

hea

lth

an

d s

afet

y.

Hig

hT

o be

com

-m

ence

d i

m-

med

iate

ly

Sou

rce:

En

vir

onm

enta

l Res

ourc

es M

anag

emen

tC

SR

Ass

essm

ent I

nd

ones

ia -

ES

DD

AC

TIO

N P

LA

NMAJ INVEST EQUITY SOUTHEAST ASIA II K/S • CSR REPORT 2015 9

Sco

pe/

Ref

eren

ceR

equ

irem

ent S

um

mar

yF

ind

ings

Su

mm

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Rec

omm

end

atio

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ctio

n P

lan

Lev

el o

f pri

orit

yT

imel

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Res

ourc

e E

ffic

ien

cy a

nd

Pol

luti

on P

reve

nti

on

Rep

ubl

ic o

f In

don

esia

L

aw N

o 18

of 2

008

on

Was

te M

anag

emen

t

Eve

ryon

e w

ho

pro

du

ces

was

te s

hal

l red

uce

an

d h

an-

dle

was

te i

n a

way

th

at is

en

-vi

ron

men

tall

y so

un

d.

Was

te g

ener

ated

at B

erry

ben

-k

a’s

mai

n o

ffic

e an

d w

are-

hou

se is

gen

eral

ly d

omes

tic

non

-haz

ard

ous

was

te s

uch

as

food

pac

kag

ing,

food

scr

ap,

plas

tic,

an

d p

aper

.

Was

te g

ener

ated

at t

he

mai

n

offi

ce is

man

aged

an

d b

y th

e bu

ild

ing

man

agem

ent.

Wh

ile,

w

aste

gen

erat

ed a

t th

e w

are-

hou

se is

man

aged

by

a th

ird

p

arty

.

Ber

rybe

nk

a d

oes

not

seg

rega

te

thei

r w

aste

. Th

ere

is a

lso

no

reco

rd r

egar

din

g w

aste

gen

-er

atio

n. I

t was

als

o re

por

ted

th

at t

her

e ar

e so

me

haz

ard

ous

was

tes

such

as

use

d b

atte

r-ie

s an

d u

sed

lam

ps

dis

pos

ed

toge

ther

wit

h t

he

dom

esti

c w

aste

.

Th

ere

wer

e tw

o d

rum

s fo

un

d

outs

ide

the

war

ehou

se w

hic

h

con

tain

ed o

ld m

ater

ials

wh

ich

ar

e su

spec

ted

to b

e h

azar

d-

ous

was

te. T

he

site

cla

ims

that

th

ese

dru

ms

wer

e le

ft b

ehin

d

by t

he

pre

viou

s te

nan

t.

Ber

rybe

nk

a sh

all c

omp

ly w

ith

Law

No.

18

Yea

r 20

08 r

egar

din

g W

aste

Man

age-

men

t th

at s

tate

s th

at e

very

one

shal

l re-

du

ce a

nd

han

dle

was

te i

n a

way

th

at is

en

viro

nm

enta

lly

sou

nd

.

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rybe

nk

a sh

all s

egre

gate

th

eir

was

te

in a

ccor

dan

ce w

ith

th

e ty

pes

of w

aste

ge

ner

ated

. Ber

rybe

nk

a sh

all a

lso

mai

n-

tain

rec

ord

s of

was

te g

ener

atio

n.

Ber

rybe

nk

a sh

all e

nsu

re t

he

dis

pos

al o

f h

azar

dou

s w

aste

(su

ch a

s u

sed

bat

teri

es

and

lam

ps)

is i

n a

ccor

dan

ce w

ith

Gov

-er

nm

ent R

egu

lati

on N

o. 1

01 Y

ear

2014

.

Ber

rybe

nk

a sh

all e

nsu

re t

hat

th

e tw

o d

rum

s le

ft b

y th

e p

revi

ous

ten

ant a

re

not

kep

t an

y lo

nge

r on

th

e si

te.

Ber

rybe

nk

a sh

all e

nga

ge a

th

ird

par

ty

to d

isp

ose

the

dru

ms

and

en

sure

th

at

the

thir

d p

arty

hol

ds

a va

lid

per

mit

to

man

age

haz

ard

ous

was

te.

Hig

hT

o be

com

-m

ence

d i

m-

med

iate

ly

Gov

ern

men

t Reg

ula

-ti

on N

o. 1

01 Y

ear

2014

on

Haz

ard

ous

Was

te

Man

agem

ent

Eve

ry b

usi

nes

s an

d/o

r ac

tiv-

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s th

at g

ener

ate

haz

ard

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s w

aste

mu

st c

ond

uct

haz

-ar

dou

s w

aste

man

agem

ent.

Sou

rce:

En

vir

onm

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anag

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tC

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Ass

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ones

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Key

poi

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d

requ

irem

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mm

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man

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per

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ith

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man

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or a

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ran

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No.

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re-

gard

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uir

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of I

nst

allm

ent a

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of F

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tin

guis

her

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age

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equ

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to b

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ded

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ve t

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ex-

tin

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her

s w

ith

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ght o

f 1.

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also

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uir

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e d

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re e

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ish

ers

wer

e be

ing

use

d o

n b

oth

th

e m

ain

of

fice

an

d w

areh

ouse

. In

th

e m

ain

off

ice,

fir

e ex

tin

guis

her

s ar

e on

ly fo

un

d i

n t

he

hal

lway

. T

her

e ar

e n

o fi

re e

xti

ngu

ish

-er

s lo

cate

d i

nsi

de

the

offi

ce.

Ber

rybe

nk

a sh

all e

nsu

re c

ompl

ian

ce to

th

e M

inis

ter

of L

abor

an

d T

ran

smig

ra-

tion

Reg

ula

tion

No.

04

of 1

980

rega

rd-

ing

Req

uir

emen

ts o

f In

stal

men

t an

d

Mai

nte

nan

ce o

f Fir

e E

xti

ngu

ish

ers.

Hig

hT

o be

com

-m

ence

d i

m-

med

iate

ly

Sou

rce:

En

vir

onm

enta

l Res

ourc

es M

anag

emen

tC

SR

Ass

essm

ent I

nd

ones

ia -

ES

DD


Sco

pe/

Ref

eren

ceR

equ

irem

ent S

um

mar

yF

ind

ings

Su

mm

ary

Rec

omm

end

atio

n/A

ctio

n P

lan

Lev

el o

f pri

orit

yT

imel

ine

con

tain

ing

CO

2 ca

n b

e pl

aced

wit

h a

dis

tan

ce b

e-tw

een

th

e ba

se o

f fir

e ex

-ti

ngu

ish

ers

not

less

th

an 1

5 cm

fro

m t

he

floo

r. M

ain

te-

nan

ce o

f fir

e ex

tin

guis

her

s m

ust

be

con

du

cted

tw

ice

a ye

ar.

Sign

age

abov

e th

e fi

re e

xti

n-

guis

her

s ar

e n

ot p

rovi

ded

. F

ire

exti

ngu

ish

ers

are

lo-

cate

d i

n s

ever

al p

lace

s in

th

e w

areh

ouse

. Som

e fi

re e

xti

n-

guis

her

s w

ere

fou

nd

to b

e in

-ac

cess

ible

bec

ause

th

ey w

ere

bloc

ked

by

oth

er o

bjec

ts s

uch

as

sh

elve

s. S

ome

fire

ex

tin

-gu

ish

ers

wer

e al

so fo

un

d w

ith

n

o si

gnag

e ab

ove

them

.

Fir

e ex

tin

guis

her

s in

th

e m

ain

of

fice

an

d w

areh

ouse

are

m

oun

ted

too

hig

h o

n t

he

wal

l.

Th

ere

is a

lso

no

evid

ence

of

mai

nte

nan

ce.

Cor

por

ate

Soc

ial R

esp

onsi

bil

ity

Ind

ones

ian

Gov

ern

-m

ent R

egu

lati

on N

o. 4

7 /

2012

on

Cor

por

ate

En

-vi

ron

men

tal a

nd

Soc

ial

Res

pon

sibi

lity

Th

e re

gula

tion

on

Cor

po

-ra

te S

ocia

l Res

pon

sibi

l-it

y re

quir

es a

ll c

omp

anie

s to

en

gage

in

th

e n

atu

ral r

e-so

urc

es b

usi

nes

s to

con

du

ct

corp

orat

e so

cial

an

d e

nvi

-ro

nm

enta

l res

pon

sibi

lity

(C

SR)

acti

viti

es.

Con

sid

erin

g th

e sc

ale,

siz

e an

d n

atu

re o

f th

e co

mp

any,

th

ere

was

no

ind

icat

ion

of

com

mu

nit

ies

affe

cted

by

the

oper

atio

n o

f Ber

rybe

nk

a bo

th

in t

he

hea

d o

ffic

e an

d t

he

war

ehou

se.

Th

eref

ore

at p

re-

sen

t Ber

rybe

nk

a d

oes

not

hav

e a

soci

al i

nve

stm

ent p

rogr

am

or c

ond

uct

an

y C

SR a

ctiv

itie

s.

All

soc

ial a

ctiv

itie

s ar

e re

-la

ted

to it

s in

tern

al e

mpl

oyee

s in

th

e fo

rm o

f reg

ula

r ou

tin

gs

and

team

bu

ild

ing.

Th

e co

mp

any

has

com

plie

d w

ith

th

e re

-qu

irem

ent o

f In

don

esia

n R

egu

lati

on

No.

47 /

201

2 on

CSR

. H

owev

er, d

epen

d-

ing

on t

he

com

pan

y’s

abil

ity

and

ava

il-

abil

ity

of r

esou

rces

, CSR

act

ivit

ies

can

be

con

du

cted

to t

arge

ted

com

mu

nit

ies

such

as

sch

ool c

hil

dre

n, u

niv

ersi

ty s

tu-

den

ts, s

pec

ific

loca

l com

mu

nit

ies

or to

it

s co

re c

ust

omer

s.

Low

As

requ

ired

Sou

rce:

En

vir

onm

enta

l Res

ourc

es M

anag

emen

tC

SR

Ass

essm

ent I

nd

ones

ia -

ES

DD


Tab

le 2

: Ali

gnm

ent w

ith

th

e A

pp

lica

ble

IFC

Per

form

ance

Sta

nd

ard

s &

Rec

omm

end

atio

n

Sco

pe/

Ref

eren

ceR

equ

irem

ent S

um

mar

yF

ind

ings

Su

mm

ary

Rec

omm

end

atio

n/A

ctio

n P

lan

Lev

el o

f pri

orit

yT

imel

ine

Per

form

an

ce S

tan

da

rd 1

: Ass

essm

ent a

nd

Ma

na

gem

ent o

f En

viro

nm

enta

l an

d S

ocia

l Ris

ks

an

d I

mp

act

s

Par

a 6

on P

olic

yT

he

com

pan

y h

as a

n E

&S

pol

icy

wh

ich

at a

min

imu

m

stat

es:

�

Com

plia

nce

wit

h a

ppli

ca-

ble

law

s an

d r

egu

lati

ons;

�

Per

son

nel

to

ensu

re c

on-

form

ance

wit

h th

e p

olic

y;

and

�

En

do

rsem

ent

by

sen

ior

man

agem

ent.

Ber

rybe

nk

a d

oes

not

hav

e an

E

&S

pol

icy

suit

able

to t

he

na-

ture

an

d s

ize

of t

he

com

pan

y.

Con

sid

erin

g th

e sc

ale,

siz

e an

d n

atu

re o

f th

e co

mp

any,

th

ere

wer

e n

o in

dic

atio

n o

f co

mm

un

itie

s af

fect

ed b

y th

e op

erat

ion

of B

erry

ben

ka

both

in

th

e h

ead

off

ice

and

th

e w

areh

ouse

. O

bser

vati

on

fou

nd

th

ere

wer

e n

o co

mm

u-

nit

ies

livi

ng

adja

cen

t to

the

war

ehou

se a

s th

e lo

cati

on is

in

a c

ompl

ex d

evot

ed fo

r w

are-

hou

se a

ctiv

itie

s fr

om v

ario

us

com

pan

y.

Ber

rybe

nk

a sh

all d

evel

op a

n E

&S

pol

-ic

y th

at s

pec

ifie

s th

at t

he

com

pan

y w

ill

com

ply

wit

h a

ppl

icab

le E

&S

un

der

IF

C

PS

1. T

he

pol

icy

shou

ld a

lso

ind

icat

e p

erso

nn

el w

ith

in t

he

com

pan

y’s

orga

n-

izat

ion

to e

nsu

re c

onfo

rman

ce to

th

e p

olic

y. B

erry

ben

ka

mu

st c

omm

un

icat

e th

e p

olic

y to

all

leve

ls o

f its

org

aniz

a-ti

on.

Low

Wit

hin

th

e n

ext 3

m

onth

s

Par

a 7

– 12

on

Iden

tifi

-ca

tion

of R

isk

s an

d I

m-

pac

ts

Th

e co

mp

any

shou

ld h

ave

a w

ritt

en p

roce

ss o

r p

ro-

ced

ure

ou

tlin

ing

how

th

ey

wil

l ass

ess

the

envi

ron

-m

enta

l an

d s

ocia

l ris

ks

and

im

pac

ts i

n P

S1-8

, as

appl

i-ca

ble,

an

d i

n a

ccor

dan

ce

wit

h n

atio

nal

law

.

Ber

rybe

nk

a d

oes

not

hav

e a

wri

tten

pro

cess

or

pro

ced

ure

to

ass

ess

thei

r en

viro

nm

enta

l an

d s

ocia

l ris

ks

and

im

pac

ts.

(ris

ks

and

im

pac

t in

tern

al

wor

ker

and

com

pan

y as

sets

)

Ber

rybe

nk

a sh

all e

stab

lish

an

d m

ain

-ta

in a

pro

cess

or

pro

ced

ure

to id

enti

fy

and

ass

ess

thei

r en

viro

nm

enta

l an

d s

o-

cial

ris

ks

and

im

pac

ts.

Low

Wit

hin

th

e n

ext 3

m

onth

s

Sou

rce:

En

vir

onm

enta

l Res

ourc

es M

anag

emen

tC

SR

Ass

essm

ent I

nd

ones

ia -

ES

DD


Sco

pe/

Ref

eren

ceR

equ

irem

ent S

um

mar

yF

ind

ings

Su

mm

ary

Rec

omm

end

atio

n/A

ctio

n P

lan

Lev

el o

f pri

orit

yT

imel

ine

Per

form

an

ce S

tan

da

rd 1

: Ass

essm

ent a

nd

Ma

na

gem

ent o

f En

viro

nm

enta

l an

d S

ocia

l Ris

ks

an

d I

mp

act

s

Par

as 1

3 –

16 o

n M

an-

agem

ent

Pro

gram

sT

he

com

pan

y m

ay h

ave

som

e ro

uti

ne

on-g

oin

g E

&S

requ

irem

ents

(e.g

. mea

s-u

re p

aram

eter

s in

wat

er

outf

all o

nce

/mon

th, e

tc.)

and

on

e-of

f or

non

-rou

-ti

ne

requ

irem

ents

(e.g

. in

-st

all d

ust

col

lect

ion

sys

tem

) or

igin

atin

g fr

om p

erm

its,

le

gal a

rran

gem

ents

, pu

b-

lic

com

mit

men

ts, o

r m

iti-

gati

on m

easu

res.

Th

e m

an-

agem

ent p

rogr

am(s

) is

th

e w

ritt

en s

yste

m t

hat

en

sure

s th

at a

ll o

f th

ese

requ

ire-

men

ts a

re c

onsi

sten

tly

com

-pl

eted

on

tim

e.

Ber

rybe

nk

a d

oes

not

hav

e an

y E

&S

requ

irem

ents

ori

gin

atin

g fr

om p

erm

its

(su

ch a

s E

nvi

-ro

nm

enta

l Per

mit

) or

en

viro

n-

men

tal d

ocu

men

ts (s

uch

as

En

viro

nm

enta

l Man

agem

ent

and

Mon

itor

ing

Pro

gram

–

UK

L/U

PL

req

uir

ed u

nd

er n

a-ti

onal

legi

slat

ion

Min

istr

y of

E

nvi

ron

men

tal R

egu

lati

on N

o.

13 Y

ear

2010

reg

ard

ing

En

vi-

ron

men

tal M

anag

emen

t an

d

Mon

itor

ing

Pro

gram

du

e to

th

e si

te’s

un

awar

enes

s of

su

ch

requ

irem

ents

.T

his

is r

equ

ired

by

the

na-

tion

al r

egu

lati

on a

s st

ated

in

T

able

1 a

bove

.

Ber

rybe

nk

a sh

all o

btai

n t

he

rele

van

t p

erm

its

and

en

viro

nm

enta

l doc

um

ents

fr

om t

he

war

ehou

se c

ompl

ex m

anag

e-m

ent.

Th

en t

he

site

sh

all c

ond

uct

man

-ag

emen

t pro

gram

s as

sta

ted

in

th

e p

er-

mit

an

d d

ocu

men

t.

Hig

hT

o be

com

-m

ence

d i

m-

med

iate

ly

Par

as 1

7-19

on

Org

an-

izat

ion

al C

apac

ity

and

C

omp

eten

cy

Th

e co

mp

any

shou

ld d

efin

e an

d c

omm

un

icat

e re

spon

-si

bili

ties

an

d a

uth

orit

ies

for

the

impl

emen

tati

on o

f th

e E

SM

S. T

he

com

pan

y al

so

requ

ires

a w

ritt

en jo

b d

e-sc

rip

tion

for

E&

S re

spon

si-

bili

ties

an

d o

rgan

izat

ion

al

char

t in

clu

din

g E

&S

staf

f.

Ber

rybe

nk

a d

oes

not

hav

e w

ritt

en jo

b d

escr

ipti

ons

for

E&

S re

spon

sibi

liti

es o

r an

or-

gan

izat

ion

al c

har

t in

clu

din

g E

&S

staf

f.

Aft

er d

evel

opin

g th

e E

SM

S, B

erry

ben

ka

mu

st d

efin

e an

d c

omm

un

icat

e re

spon

-si

bili

ties

an

d a

uth

orit

ies

for

its

impl

e-m

enta

tion

.

Low

Wit

hin

th

e n

ext 3

m

onth

s

Sou

rce:

En

vir

onm

enta

l Res

ourc

es M

anag

emen

tC

SR

Ass

essm

ent I

nd

ones

ia -

ES

DD


Sco

pe/

Ref

eren

ceR

equ

irem

ent S

um

mar

yF

ind

ings

Su

mm

ary

Rec

omm

end

atio

n/A

ctio

n P

lan

Lev

el o

f pri

orit

yT

imel

ine

Ass

essm

ent a

nd

Ma

na

gem

ent o

f En

viro

nm

enta

l an

d S

ocia

l Ris

ks

an

d I

mp

act

s

Par

as 2

0 –

21 o

n E

mer

-ge

ncy

Pre

par

edn

ess

and

Res

pon

se

Wh

ere

the

pro

ject

in

volv

es

spec

ific

ally

iden

tifi

ed p

hys

-ic

al e

lem

ents

, asp

ects

an

d

faci

liti

es t

hat

are

like

ly to

ge

ner

ate

imp

acts

, th

e E

SM

S w

ill e

stab

lish

an

d m

ain

-ta

in a

n e

mer

gen

cy p

rep

ar-

edn

ess

and

res

pon

se s

ys-

tem

so

that

th

e cl

ien

t wil

l be

pre

par

ed to

res

pon

d to

ac

cid

enta

l an

d e

mer

gen

cy

situ

atio

n.

Bas

ed o

n o

bser

vati

ons

both

at

th

e h

ead

off

ice

and

war

e-h

ouse

, th

e bi

gges

t haz

ard

to

the

asse

ts o

f th

e co

mp

any

is

the

even

t of a

fir

e. A

t th

e p

re-

sen

t bot

h t

he

hea

d o

ffic

e an

d

war

ehou

se h

ave

not

est

ab-

lish

ed a

n e

mer

gen

cy p

rep

ar-

edn

ess

and

res

pon

se s

yste

m.

Bot

h lo

cati

ons

hav

e n

ot e

stab

-li

shed

fir

e es

cap

e ro

ute

s.

Ber

rybe

nk

a to

dev

elop

an

Em

erge

ncy

P

rep

ared

nes

s an

d R

esp

onse

Pla

n. B

er-

rybe

nk

a sh

all e

nsu

re t

hat

th

ere

are

re-

sou

rces

to i

mpl

emen

t th

e pl

an. T

he

plan

mu

st a

lso

be r

evie

wed

, up

dat

ed,

and

sta

ff t

rain

ed p

erio

dic

ally

.

Hig

hT

o be

com

-m

ence

d i

m-

med

iate

ly

Par

as 2

2 –

24 o

n M

oni-

tori

ng

and

Rev

iew

Th

e co

mp

any

shou

ld h

ave

wri

tten

pro

ced

ure

s on

h

ow t

hey

wil

l mon

itor

an

d

mea

sure

th

e m

anag

emen

t p

rogr

am to

kn

ow if

it is

w

ork

ing

and

als

o to

in

form

S

enio

r M

anag

emen

t.

Ber

rybe

nk

a d

oes

not

hav

e w

ritt

en p

roce

du

res

on h

ow

to m

onit

or a

nd

mea

sure

th

e m

anag

emen

t pro

gram

as

re-

quir

ed b

y th

e E

nvi

ron

men

tal

Man

agem

ent a

nd

Mon

itor

ing

Pro

gram

(U

KL

/UP

L).

Ber

rybe

nk

a sh

all o

btai

n t

he

UK

L/U

PL

d

ocu

men

t fro

m t

he

war

ehou

se c

ompl

ex

man

agem

ent.

Th

en t

he

site

sh

all m

on-

itor

an

d m

easu

re t

he

man

agem

ent p

ro-

gram

s as

sta

ted

in

th

e p

erm

it a

nd

doc

-u

men

t.

Hig

hT

o be

com

-m

ence

d i

m-

med

iate

ly

Par

as 2

5 –

36 S

take

-h

old

er E

nga

gem

ent

Stak

ehol

der

en

gage

men

t is

th

e ba

sis

for

buil

din

g st

ron

g re

lati

onsh

ips

that

ar

e es

sen

tial

for

the

suc-

cess

ful m

anag

emen

t of a

p

roje

ct’s

en

viro

nm

ent a

nd

so

cial

im

pac

ts.

Th

is m

ay

incl

ud

e st

akeh

old

er a

nal

-ys

is a

nd

pla

nn

ing,

dis

clo

-su

re a

nd

dis

sem

inat

ion

of

info

rmat

ion

, con

sult

atio

n

and

par

tici

pat

ion

, gri

ev-

ance

Con

sid

erin

g th

e sc

ale,

siz

e an

d n

atu

re o

f th

e co

mp

any,

th

ere

was

no

ind

icat

ion

of

com

mu

nit

ies

affe

cted

by

the

oper

atio

n o

f Ber

rybe

nk

a bo

th

in t

he

hea

d o

ffic

e an

d t

he

war

ehou

se.

Bas

ed o

n i

nte

rvie

ws

wit

h t

he

HR

man

ager

, to

dat

e B

erry

-be

nk

a d

oes

not

hav

e so

cial

in

-ve

stm

ent p

rogr

am

Dep

end

ing

on t

he

com

pan

y’s

abil

ity

and

ava

ilab

ilit

y of

res

ourc

es, C

SR a

c-ti

viti

es c

an b

e co

nd

uct

ed to

tar

gete

d

com

mu

nit

ies

such

as

sch

ool c

hil

dre

n,

un

iver

sity

stu

den

ts, s

pec

ific

loca

l com

-m

un

itie

s or

to it

s co

re c

ust

omer

s.

Low

As

requ

ired

Sou

rce:

En

vir

onm

enta

l Res

ourc

es M

anag

emen

tC

SR

Ass

essm

ent I

nd

ones

ia -

ES

DD


Sco

pe/

Ref

eren

ceR

equ

irem

ent S

um

mar

yF

ind

ings

Su

mm

ary

Rec

omm

end

atio

n/A

ctio

n P

lan

Lev

el o

f pri

orit

yT

imel

ine

mec

han

ism

s a

nd

on

goin

g re

por

tin

g to

Aff

ecte

d C

om-

mu

nit

ies.

Th

e n

atu

re, f

re-

quen

cy a

nd

leve

l of e

ffor

t w

ill b

e co

mm

ensu

rate

wit

h

the

pro

ject

’s r

isk

and

ad

-ve

rse

imp

acts

.

or c

ond

uct

CSR

act

ivit

ies.

All

soc

ial a

ctiv

itie

s co

nd

uct

ed

by B

erry

ben

ka

are

rela

ted

to

its

inte

rnal

em

ploy

ees

in t

he

form

of r

egu

lar

outi

ngs

an

d

team

bu

ild

ings

.

Per

form

ance

Sta

nd

ard

2: L

abor

an

d W

ork

ing

Con

dit

ion

s

Par

as 8

– 9

on

Hu

man

R

esou

rces

Pol

icie

s an

d

Pro

ced

ure

s

Th

e cl

ien

t/co

mp

any

wil

l ad

opt a

nd

im

plem

ent a

hu

-m

an r

esou

rces

pol

icy

ap-

pro

pri

ate

to it

s si

ze a

nd

w

ork

forc

e th

at s

ets

out i

ts

app

roac

h to

man

agin

g em

-pl

oyee

s co

nsi

sten

t wit

h t

he

requ

irem

ents

of t

his

Per

-fo

rman

ce S

tan

dar

d a

nd

na-

tion

al la

w.

Hu

man

res

ourc

es p

roce

du

re

for

the

year

of 2

015

– 20

17 h

as

been

est

abli

shed

to f

it w

ith

th

e si

ze a

nd

typ

e of

th

e co

m-

pan

y. T

he

pro

ced

ure

en

com

-p

asse

s as

pec

ts o

f ter

ms

of e

m-

ploy

men

t, p

rom

otio

ns

and

ca

reer

dev

elop

men

t, w

ork

ing

hou

rs, l

eave

, gri

evan

ce r

esol

u-

tion

, wag

es a

nd

bon

us,

hea

lth

in

sura

nce

an

d w

ork

ing

dis

-m

issa

l.

Eve

n t

hou

gh t

her

e ar

e n

o si

gnif

ican

t is-

sues

in

term

s of

wor

kin

g co

nd

itio

ns,

th

ere

are

a n

um

ber

of r

equ

irem

ents

un

-d

er t

he

nat

ion

al L

aw /

Nu

mbe

r 13

of

2003

on

Lab

or a

nd

Wor

kfo

rce

Man

age-

men

t w

hic

h a

re n

ot s

pec

ific

ally

men

-ti

oned

an

d t

her

efor

e n

eed

to b

e es

tab

-li

shed

wit

hin

th

e p

roce

du

re, n

amel

y:

�

Non

-Dis

crim

inat

ion

; an

d �

Fre

edom

for

wor

kers

to

form

a w

ork-

ers’

org

aniz

atio

n t

o fi

t th

e si

ze a

nd

sc

ale

of t

he

com

pan

y.

Th

e C

omp

any

to e

nsu

re t

he

Hu

man

Re-

sou

rces

Pol

icie

s ar

e re

adil

y an

d e

asil

y ac

cess

ible

to a

ll w

orke

rs.

Hig

hT

o b

e co

m-

men

ced

im

-m

edia

tely

Par

as 1

0 -1

2 on

Wor

k-in

g C

ond

itio

ns

and

T

erm

s of

Em

ploy

men

t.

Wh

ere

the

clie

nt i

s p

arty

to

a c

olle

ctiv

e ba

rgai

nin

g ag

reem

ent w

ith

a w

orke

r’s

orga

nis

atio

n, s

uch

agr

ee-

men

t wil

l be

resp

ecte

d.

Ber

rybe

nk

a im

plem

ent f

air

and

tra

nsp

aren

t em

ploy

ee r

e-cr

uit

men

t th

rou

gh a

ser

ies

of

test

s an

d i

nte

rvie

ws.

Em

ploy

-m

ent o

pp

ortu

nit

ies

No

sign

ific

ant i

ssu

es n

oted

, ass

um

ing

nat

ion

al la

w a

nd

in

tern

atio

nal

pra

c-ti

ces

is fo

llow

ed

--

Sou

rce:

En

vir

onm

enta

l Res

ourc

es M

anag

emen

tC

SR

Ass

essm

ent I

nd

ones

ia -

ES

DD


Sco

pe/

Ref

eren

ceR

equ

irem

ent S

um

mar

yF

ind

ings

Su

mm

ary

Rec

omm

end

atio

n/A

ctio

n P

lan

Lev

el o

f pri

orit

yT

imel

ine

Wh

ere

such

agr

eem

ents

do

not

ex

ist,

or

do

not

ad

dre

ss

wor

kin

g co

nd

itio

ns

and

te

rms

of e

mpl

oym

ent,

th

e cl

ien

t wil

l pro

vid

e re

spon

-si

ble

wor

kin

g co

nd

itio

ns

and

term

s of

em

ploy

men

t.

are

also

op

enly

in

form

ed

thro

ugh

var

iou

s so

cial

med

ia

such

as

jobs

db.

com

It is

un

der

stoo

d t

hat

up

to J

un

e 20

15 a

ll e

mpl

oyee

s of

Ber

ry-

ben

ka

wer

e p

erm

anen

t wor

k-er

s. A

ll w

orke

rs a

re p

rovi

ded

w

ith

a w

ritt

en a

nd

agr

eed

co

ntr

act d

ocu

men

t bet

wee

n

wor

ker

and

th

e co

mp

any.

Be-

yon

d J

un

e 20

15, B

erry

ben

ka

wil

l hir

e se

mi-

per

man

ent /

co

ntr

act w

orke

rs w

ith

a m

in-

imu

m c

ontr

act t

ime

of 6

m

onth

s bu

t th

is is

lim

ited

to

cust

omer

ser

vice

per

son

nel

.

All

wor

kers

are

pro

vid

ed w

ith

h

ealt

h i

nsu

ran

ce, a

t lea

st t

he

min

imu

m s

alar

y /

wag

es a

nd

d

ays

of le

ave

in c

ompl

ian

ce

wit

h I

nd

ones

ia la

w a

nd

reg

u-

lati

ons.

Sou

rce:

En

vir

onm

enta

l Res

ourc

es M

anag

emen

tC

SR

Ass

essm

ent I

nd

ones

ia -

ES

DD


Sco

pe/

Ref

eren

ceR

equ

irem

ent S

um

mar

yF

ind

ings

Su

mm

ary

Rec

omm

end

atio

n/A

ctio

n P

lan

Lev

el o

f pri

orit

yT

imel

ine

Par

as 1

3 &

14

on W

ork-

ers’

Org

aniz

atio

ns

In c

oun

trie

s w

her

e n

atio

nal

la

w r

ecog

nis

es w

orke

rs’

righ

ts to

form

an

d to

join

w

orke

rs’ o

rgan

isat

ion

s of

th

eir

choo

sin

g w

ith

out i

n-

terf

eren

ce a

nd

to b

arga

in

coll

ecti

vely

, th

e cl

ien

t wil

l co

mpl

y w

ith

nat

ion

al la

w.

Wor

kers

are

op

en to

ex

pre

ss

thei

r as

pir

atio

ns,

con

cern

s,

idea

s or

su

gges

tion

s d

irec

tly

to t

he

man

agem

ent.

Con

sid

erin

g th

e n

atu

re a

nd

sc

ale

of t

he

com

pan

y, a

t th

e p

rese

nt t

ime

the

wor

kers

do

not

hav

e th

e n

eed

to e

stab

lish

a

wor

kers

’ org

aniz

atio

n e

ven

th

ough

bas

ed o

n t

he

nu

mbe

r of

em

ploy

ees

and

un

der

th

e n

atio

nal

law

th

ey a

re e

ligi

ble

and

hav

e th

e ri

ght t

o fo

rm o

ne.

Th

e C

omp

any

to c

onti

nu

e to

pro

vid

e th

e fr

eed

om fo

r em

ploy

ees

to fo

rm a

w

orke

rs’ o

rgan

izat

ion

eve

n t

hou

gh a

t th

e cu

rren

t sta

ge t

he

wor

kers

are

not

co

nsi

der

ing

to fo

rm a

ny

wor

kers

’ or-

gan

izat

ion

.

Low

Lif

etim

e of

th

e co

mp

any

Par

as 1

5 –

17 o

n N

on-

Dis

crim

inat

ion

an

dE

qual

Op

por

tun

ity

Th

e cl

ien

t wil

l not

mak

e em

ploy

men

t dec

isio

ns

on

the

basi

s of

per

son

al c

har

-ac

teri

stic

s u

nre

late

d to

in

-h

eren

t job

req

uir

emen

ts.

Th

e cl

ien

t wil

l bas

e th

e em

-pl

oym

ent r

elat

ion

ship

on

th

e p

rin

cipl

e of

equ

al o

p-

por

tun

ity

and

fair

tre

at-

men

t, a

nd

wil

l not

dis

-cr

imin

ate

wit

h r

esp

ect t

o as

pec

ts o

f th

e em

ploy

men

t re

lati

onsh

ip, i

ncl

ud

ing

re-

cru

itm

ent a

nd

hir

ing,

com

-p

ensa

tion

(in

clu

din

g w

ages

an

d b

enef

its)

, wor

kin

g co

n-

dit

ion

s an

d te

rms

of e

m-

ploy

men

t, a

cces

s to

tra

in-

ing,

pro

mot

ion

, ter

min

atio

n

of e

mpl

oym

ent o

r re

tire

-m

ent,

an

d d

isci

plin

e.

No

ind

icat

ion

of d

iscr

imi-

nat

ion

or

an u

neq

ual

op

por

-tu

nit

y ob

serv

ed w

ith

in t

his

co

mp

any

rega

rdin

g ge

nd

er,

wor

ker

recr

uit

men

t, c

aree

r d

evel

opm

ent,

wor

kin

g ov

er-

tim

e or

ben

efit

s p

rovi

ded

.

Com

pan

y to

con

tin

ue

to e

nsu

re a

ll

wor

kers

are

in

form

ed o

n w

orke

r ri

ghts

to

in

clu

de

non

-dis

crim

inat

ion

, equ

al

opp

ortu

nit

y, c

aree

r d

evel

opm

ent a

nd

w

ork

ing

ben

efit

s.

Low

As

requ

ired

an

d a

t th

e ti

me

a n

ew

empl

oyee

jo

ins

the

com

pan

y.

Sou

rce:

En

vir

onm

enta

l Res

ourc

es M

anag

emen

tC

SR

Ass

essm

ent I

nd

ones

ia -

ES

DD


Sco

pe/

Ref

eren

ceR

equ

irem

ent S

um

mar

yF

ind

ings

Su

mm

ary

Rec

omm

end

atio

n/A

ctio

n P

lan

Lev

el o

f pri

orit

yT

imel

ine

Par

as 1

3 &

14

on W

ork-

ers’

Org

aniz

atio

ns

In c

oun

trie

s w

her

e n

atio

nal

la

w r

ecog

nis

es w

orke

rs’

righ

ts to

form

an

d to

join

w

orke

rs’ o

rgan

isat

ion

s of

th

eir

choo

sin

g w

ith

out i

n-

terf

eren

ce a

nd

to b

arga

in

coll

ecti

vely

, th

e cl

ien

t wil

l co

mpl

y w

ith

nat

ion

al la

w.

Wor

kers

are

op

en to

ex

pre

ss

thei

r as

pir

atio

ns,

con

cern

s,

idea

s or

su

gges

tion

s d

irec

tly

to t

he

man

agem

ent.

Con

sid

erin

g th

e n

atu

re a

nd

sc

ale

of t

he

com

pan

y, a

t th

e p

rese

nt t

ime

the

wor

kers

do

not

hav

e th

e n

eed

to e

stab

lish

a

wor

kers

’ org

aniz

atio

n e

ven

th

ough

bas

ed o

n t

he

nu

mbe

r of

em

ploy

ees

and

un

der

th

e n

atio

nal

law

th

ey a

re e

ligi

ble

and

hav

e th

e ri

ght t

o fo

rm o

ne.

Th

e C

omp

any

to c

onti

nu

e to

pro

vid

e th

e fr

eed

om fo

r em

ploy

ees

to fo

rm a

w

orke

rs’ o

rgan

izat

ion

eve

n t

hou

gh a

t th

e cu

rren

t sta

ge t

he

wor

kers

are

not

co

nsi

der

ing

to fo

rm a

ny

wor

kers

’ or-

gan

izat

ion

.

Low

Lif

etim

e of

th

e co

mp

any

Par

as 1

5 –

17 o

n N

on-

Dis

crim

inat

ion

an

dE

qual

Op

por

tun

ity

Th

e cl

ien

t wil

l not

mak

e em

ploy

men

t dec

isio

ns

on

the

basi

s of

per

son

al c

har

-ac

teri

stic

s u

nre

late

d to

in

-h

eren

t job

req

uir

emen

ts.

Th

e cl

ien

t wil

l bas

e th

e em

-pl

oym

ent r

elat

ion

ship

on

th

e p

rin

cipl

e of

equ

al o

p-

por

tun

ity

and

fair

tre

at-

men

t, a

nd

wil

l not

dis

-cr

imin

ate

wit

h r

esp

ect t

o as

pec

ts o

f th

e em

ploy

men

t re

lati

onsh

ip, i

ncl

ud

ing

re-

cru

itm

ent a

nd

hir

ing,

com

-p

ensa

tion

(in

clu

din

g w

ages

an

d b

enef

its)

, wor

kin

g co

n-

dit

ion

s an

d te

rms

of e

m-

ploy

men

t, a

cces

s to

tra

in-

ing,

pro

mot

ion

, ter

min

atio

n

of e

mpl

oym

ent o

r re

tire

-m

ent,

an

d d

isci

plin

e.

No

ind

icat

ion

of d

iscr

imi-

nat

ion

or

an u

neq

ual

op

por

-tu

nit

y ob

serv

ed w

ith

in t

his

co

mp

any

rega

rdin

g ge

nd

er,

wor

ker

recr

uit

men

t, c

aree

r d

evel

opm

ent,

wor

kin

g ov

er-

tim

e or

ben

efit

s p

rovi

ded

.

Com

pan

y to

con

tin

ue

to e

nsu

re a

ll

wor

kers

are

in

form

ed o

n w

orke

r ri

ghts

to

in

clu

de

non

-dis

crim

inat

ion

, equ

al

opp

ortu

nit

y, c

aree

r d

evel

opm

ent a

nd

w

ork

ing

ben

efit

s.

Low

As

requ

ired

an

d a

t th

e ti

me

a n

ew

empl

oyee

jo

ins

the

com

pan

y.

Sou

rce:

En

vir

onm

enta

l Res

ourc

es M

anag

emen

tC

SR

Ass

essm

ent I

nd

ones

ia -

ES

DD

Sco

pe/

Ref

eren

ceR

equ

irem

ent S

um

mar

yF

ind

ings

Su

mm

ary

Rec

omm

end

atio

n/A

ctio

n P

lan

Lev

el o

f pri

orit

yT

imel

ine

Par

as 1

8 –

19 o

n R

e-tr

ench

men

tP

rior

to i

mpl

emen

tin

g an

y co

llec

tive

dis

mis

sals

th

e cl

ien

t wil

l car

ry o

ut a

n

anal

ysis

of a

lter

nat

ives

to

retr

ench

men

t. A

ret

ren

ch-

men

t pla

n w

ill b

e d

evel

-op

ed a

nd

im

plem

ente

d to

re

du

ce t

he

adve

rse

imp

acts

of

ret

ren

chm

ent o

n w

ork-

ers.

It is

un

der

stoo

d t

hat

th

e co

m-

pan

y d

oes

not

im

plem

ent c

ol-

lect

ive

dis

mis

sals

of w

orke

r.

No

sign

ific

ant i

ssu

es n

oted

, ass

um

ing

nat

ion

al la

w a

nd

in

tern

atio

nal

pra

c-ti

ces

is fo

llow

ed.

--

Par

a 20

on

Gri

evan

ce

Mec

han

ism

Th

e cl

ien

t wil

l pro

vid

e a

grie

van

ce m

ech

anis

m fo

r w

orke

rs (a

nd

th

eir

orga

ni-

sati

ons,

wh

ere

they

ex

ist)

to

rais

e w

orkp

lace

con

cern

s.

Th

e cl

ien

t wil

l in

form

th

e w

orke

rs o

f th

e gr

ieva

nce

m

ech

anis

m a

t th

e ti

me

of

recr

uit

men

t an

d m

ake

it

easi

ly a

cces

sibl

e to

th

em.

A g

riev

ance

res

olu

tion

pro

-ce

du

re h

as b

een

est

abli

shed

w

ith

in t

he

Hu

man

Res

ourc

es

Pol

icie

s /

Pro

ced

ure

, alt

hou

gh

ther

e w

as n

o ev

iden

ce o

f pas

t gr

ieva

nce

s ra

ised

by

the

wor

k-er

s.

Bas

ed o

n i

nte

rvie

ws

wit

h

wor

kers

an

d H

R d

epar

tmen

ts

all w

orke

rs h

ave

an o

pen

an

d

easy

acc

ess

to t

he

man

age-

men

t to

rais

e gr

ieva

nce

s or

co

nce

rns

in fo

rmal

an

d n

on-

form

al c

han

nel

s. H

owev

er

not

all

wor

kers

are

aw

are

of

the

grie

van

ce r

esol

uti

on p

ro-

ced

ure

est

abli

shed

wit

hin

th

e h

um

an r

esou

rces

pol

icie

s /

pro

ced

ure

.

Com

pan

y to

en

sure

th

e gr

ieva

nce

pro

-ce

du

re is

dis

clos

ed to

all

wor

kers

an

d

easi

ly a

cces

sibl

e.

Com

pan

y to

doc

um

ent /

log

any

futu

re

grie

van

ces

may

ari

se f

rom

th

e w

orke

rs.

Med

ium

To

be c

om-

men

ced

im

-m

edia

tely

Sou

rce:

En

vir

onm

enta

l Res

ourc

es M

anag

emen

tC

SR

Ass

essm

ent I

nd

ones

ia -

ES

DD


Sco

pe/

Ref

eren

ceR

equ

irem

ent S

um

mar

yF

ind

ings

Su

mm

ary

Rec

omm

end

atio

n/A

ctio

n P

lan

Lev

el o

f pri

orit

yT

imel

ine

Par

a 20

on

Pro

tect

ing

the

wor

kfo

rce;

Ch

ild

L

abor

Th

e cl

ien

t wil

l not

em

ploy

ch

ild

ren

in

a m

ann

er t

hat

is

eco

nom

ical

ly e

xpl

oita

-ti

ve, o

r is

like

ly to

be

haz

-ar

dou

s or

to i

nte

rfer

e w

ith

th

e ch

ild

’s e

du

cati

on, o

r to

be

har

mfu

l to

the

chil

d’s

h

ealt

h o

r p

hys

ical

, men

tal,

sp

irit

ual

, mor

al, o

r so

cial

d

evel

opm

ent.

No

ind

icat

ion

of c

hil

d la

bor

obse

rved

at a

ny

leve

l of t

he

wor

kfo

rce

wit

hin

th

e co

m-

pan

y.

No

sign

ific

ant i

ssu

es n

oted

, ass

um

ing

nat

ion

al L

aw /

Act

Nu

mbe

r 13

of 2

003

on L

abor

an

d W

ork

forc

e M

anag

emen

t.

and

in

tern

atio

nal

pra

ctic

es I

FC

PS

2 on

L

abor

an

d W

ork

ing

Con

dit

ion

s is

fol-

low

ed.

--

Par

a 22

on

For

ced

La-

bor

Th

e cl

ien

t wil

l not

em

ploy

fo

rced

labo

ur,

wh

ich

con

-si

sts

of a

ny

wor

k or

ser

vice

n

ot v

olu

nta

rily

per

form

ed

that

is e

xact

ed f

rom

an

in

-d

ivid

ual

un

der

th

reat

of

forc

e or

pen

alty

.

No

ind

icat

ion

of f

orce

d la

bor

obse

rved

at a

ny

leve

l of t

he

wor

kfo

rce

wit

hin

th

e co

m-

pan

y.

No

sign

ific

ant i

ssu

es n

oted

, ass

um

ing

nat

ion

al L

aw /

Act

Nu

mbe

r 13

of 2

003

on L

abor

an

d W

ork

forc

e M

anag

emen

t an

d i

nte

rnat

ion

al p

ract

ices

IF

C P

S 2

on

Lab

or a

nd

Wor

kin

g C

ond

itio

ns

is fo

l-lo

wed

.

--

Par

a 23

on

Occ

up

a-ti

onal

Hea

lth

& S

afet

yT

he

clie

nt w

ill p

rovi

de

a sa

fe a

nd

hea

lth

y w

ork

en-

viro

nm

ent,

tak

ing

into

ac-

cou

nt i

nh

eren

t ris

k in

its

par

ticu

lar

sect

or a

nd

sp

e-ci

fic

haz

ard

s in

th

e cl

ien

t’s

wor

k ar

eas.

Ber

rybe

nk

a h

as n

ot t

aken

st

eps

to id

enti

fy p

oten

tial

haz

-ar

ds

to w

orke

rs a

nd

pre

ven

t ac

cid

ents

, in

jury

, an

d d

is-

ease

. Ber

rybe

nk

a al

so h

as n

ot

pro

vid

ed a

ny

occu

pat

ion

al

hea

lth

an

d s

afet

y tr

ain

ing

to

its

wor

kers

. Th

ere

is n

o d

oc-

um

enta

tion

on

occ

up

atio

nal

ac

cid

ents

, dis

ease

s, a

nd

in

ci-

den

ts.

Mor

eove

r, t

her

e is

no

emer

-ge

ncy

res

pon

se p

lan

in

bot

h

the

mai

n o

ffic

e an

d w

are-

hou

se, n

or e

vacu

atio

n r

oute

.

Ber

rybe

nk

a to

iden

tify

pot

enti

al h

az-

ard

s to

wor

kers

an

d p

reve

nt a

ccid

ents

, in

jury

, an

d d

isea

se.

Ber

rybe

nk

a to

dev

elop

an

em

erge

ncy

re

spon

se p

lan

, th

en i

mpl

emen

t it i

n t

he

dai

ly a

ctiv

itie

s bo

th i

n t

he

mai

n o

ffic

e an

d w

areh

ouse

.

Ber

rybe

nk

a to

pro

vid

e fi

rst a

id k

its

as a

m

ean

s of

qu

ick

reli

ef fo

r h

and

lin

g w

ork

rela

ted

min

or a

ccid

ents

bot

h a

t hea

d-

quar

ters

an

d i

n t

he

war

ehou

se.

Hig

hT

o be

com

-m

ence

d i

m-

med

iate

ly

Sou

rce:

En

vir

onm

enta

l Res

ourc

es M

anag

emen

tC

SR

Ass

essm

ent I

nd

ones

ia -

ES

DD


Sco

pe/

Ref

eren

ceR

equ

irem

ent S

um

mar

yF

ind

ings

Su

mm

ary

Rec

omm

end

atio

n/A

ctio

n P

lan

Lev

el o

f pri

orit

yT

imel

ine

It is

rep

orte

d t

hat

th

e bu

ild

ing

man

agem

ent w

her

e th

e m

ain

of

fice

is lo

cate

d h

as n

ever

con

-d

uct

ed a

ny

fire

dri

lls

nor

pro

-vi

ded

an

y in

form

atio

n r

egar

d-

ing

emer

gen

cy r

esp

onse

pla

n.

Th

ere

is a

lso

no

iden

tifi

ed

mu

ster

poi

nt.

Wat

er s

pri

nk

lers

an

d s

mok

e d

etec

tors

wer

e ob

serv

ed a

ll

over

th

e m

ain

off

ice

area

s.

How

ever

, th

ere

is n

o ev

iden

ce

of m

ain

ten

ance

.

Bot

h t

he

hea

d o

ffic

e an

d w

are-

hou

se w

ere

not

equ

ipp

ed w

ith

m

inim

um

fir

st a

id m

edic

atio

n

for

emer

gen

cy u

se /

pu

rpos

es.

Par

a 24

– 2

6 on

Wor

k-er

s E

nga

ged

by

Th

ird

P

arti

es

Wit

h r

esp

ect t

o co

ntr

acte

d

wor

kers

th

e cl

ien

t wil

l tak

e co

mm

erci

ally

rea

son

able

ef

fort

s to

asc

erta

in t

hat

th

e th

ird

par

ties

wh

o en

gage

th

ese

wor

kers

are

rep

uta

ble

and

legi

tim

ate

ente

rpri

ses

and

hav

e ap

pro

pri

ate

man

-ag

emen

t sys

tem

s to

op

erat

e in

a m

ann

er c

onsi

sten

t wit

h

the

requ

irem

ents

of t

his

P

erfo

rman

ce S

tan

dar

d (e

x-ce

pt f

or 1

8-19

an

d 2

7-29

).

Ber

rybe

nk

a u

ses

thir

d p

ar-

ties

to s

up

ply

its

secu

rity

sta

ff

in t

he

war

ehou

se a

rea,

bas

ed

on o

bser

vati

on a

nd

in

terv

iew

s th

ere

was

no

ind

icat

ion

of v

io-

lati

ons

to t

he

requ

irem

ents

of

PS2

Per

form

ance

Sta

nd

ard

.

No

spec

ific

rec

omm

end

atio

ns.

--

Sou

rce:

En

vir

onm

enta

l Res

ourc

es M

anag

emen

tC

SR

Ass

essm

ent I

nd

ones

ia -

ES

DD


Sco

pe/

Ref

eren

ceR

equ

irem

ent S

um

mar

yF

ind

ings

Su

mm

ary

Rec

omm

end

atio

n/A

ctio

n P

lan

Lev

el o

f pri

orit

yT

imel

ine

Par

a 27

– 2

9 on

Su

ppl

y C

hai

nW

ith

res

pec

t to

con

trac

ted

w

orke

rs t

he

clie

nt w

ill t

ake

com

mer

cial

ly r

easo

nab

le

effo

rts

to a

scer

tain

th

at t

he

thir

d p

arti

es w

ho

enga

ge

thes

e w

orke

rs a

re r

epu

tabl

e an

d le

giti

mat

e en

terp

rise

s an

d h

ave

app

rop

riat

e m

an-

agem

ent s

yste

ms

to o

per

ate

in a

man

ner

con

sist

ent w

ith

th

e re

quir

emen

ts o

f th

is

Per

form

ance

Sta

nd

ard

(ex-

cep

t for

18-

19 a

nd

27-

29).

Not

ap

plic

able

.-

--

Per

form

ance

Sta

nd

ard

3: R

esou

rce

Eff

icie

ncy

an

d P

ollu

tion

Pre

ven

tion

Par

as 4

-5 G

ener

al -

EH

S G

LN

ot a

ppl

icab

le

Par

as 6

on

Res

ourc

e E

f-fi

cien

cyN

ot a

ppl

icab

le

Par

as 7

-8 o

n G

reen

H

ouse

Gas

ses

Not

ap

plic

able

Par

a 9

on W

ater

Con

-su

mp

tion

Wh

en t

he

pro

ject

is a

pot

en-

tial

ly s

ign

ific

ant c

onsu

mer

of

wat

er, i

n a

dd

itio

n to

ap

-pl

yin

g th

e re

sou

rce

effi

-ci

ency

req

uir

emen

ts o

f th

is

Per

form

ance

Sta

nd

ard

, th

e cl

ien

t sh

all a

dop

t mea

sure

s th

at a

void

or

red

uce

wat

er

usa

ge s

o th

at t

he

pro

ject

’s

wat

er c

onsu

mp

tion

doe

s n

ot h

ave

sign

ific

ant a

dve

rse

imp

acts

up

on o

ther

s.

Wat

er is

use

d o

nly

for

toil

et

pu

rpos

es b

oth

in

th

e h

ead

of-

fice

an

d w

areh

ouse

.T

her

e w

ere

no

ind

icat

ion

s of

th

e u

se o

f lar

ge v

olu

mes

of

wat

er fo

r th

e co

mp

any

op-

erat

ion

al a

ctiv

itie

s (p

rod

-u

ct r

ecep

tion

, pac

kag

ing

and

sh

ipp

ing)

.

No

spec

ific

rec

omm

end

atio

n-

-

Sou

rce:

En

vir

onm

enta

l Res

ourc

es M

anag

emen

tC

SR

Ass

essm

ent I

nd

ones

ia -

ES

DD


Sco

pe/

Ref

eren

ceR

equ

irem

ent S

um

mar

yF

ind

ings

Su

mm

ary

Rec

omm

end

atio

n/A

ctio

n P

lan

Lev

el o

f pri

orit

yT

imel

ine

Par

as 1

0-1

1 on

Pol

lu-

tion

Pre

ven

tion

Par

a 12

on

Was

teT

he

com

pan

y sh

ould

ap

ply

an a

nal

ysis

an

d h

iera

rch

i-ca

l ap

pro

ach

of a

void

ance

, re

du

ctio

n, r

ecov

ery,

reu

se,

and

en

viro

nm

enta

lly

sou

nd

d

isp

osal

to t

he

man

age-

men

t of h

azar

dou

s an

d n

on-

haz

ard

ous

was

tes.

Was

te g

ener

ated

at B

erry

ben

-k

a’s

mai

n o

ffic

e an

d w

are-

hou

se is

gen

eral

ly d

omes

tic

non

-haz

ard

ous

was

te s

uch

as

food

pac

kag

ing,

food

scr

ap,

plas

tic,

an

d p

aper

.

Was

te g

ener

ated

at t

he

mai

n

offi

ce is

man

aged

an

d b

y th

e bu

ild

ing

man

agem

ent.

Wh

ile,

w

aste

gen

erat

ed a

t th

e w

are-

hou

se is

man

aged

by

a th

ird

p

arty

.

Ber

rybe

nk

a d

oes

not

seg

rega

te

thei

r w

aste

. Th

ere

is a

lso

no

reco

rd r

egar

din

g w

aste

gen

-er

atio

n. I

t was

als

o re

por

ted

th

at t

her

e ar

e so

me

haz

ard

-ou

s w

aste

su

ch a

s u

sed

bat

ter-

ies

and

use

d la

mp

s d

isp

osed

to

geth

er w

ith

th

e d

omes

tic

was

te.

Th

ere

wer

e tw

o d

rum

s fo

un

d

outs

ide

the

war

ehou

se w

hic

h

con

tain

ed o

ld m

ater

ials

wh

ich

ar

e su

spec

ted

to b

e h

azar

d-

ous

was

te. T

he

site

cla

ims

that

th

ese

dru

ms

wer

e le

ft b

ehin

d

by t

he

pre

viou

s te

nan

t.

Ber

rybe

nk

a sh

all s

egre

gate

th

eir

was

te

in a

ccor

dan

ce w

ith

th

e ty

pes

of w

aste

ge

ner

ated

. Ber

rybe

nk

a sh

all a

lso

mai

n-

tain

rec

ord

s of

was

te g

ener

atio

n.

Ber

rybe

nk

a sh

all e

nsu

re t

he

dis

pos

al

of h

azar

dou

s w

aste

(su

ch a

s u

sed

bat

-te

ries

an

d la

mp

s) is

in

acc

ord

ance

wit

h

Gov

ern

men

t Reg

ula

tion

No.

101

Yea

r 20

14 r

egar

din

g H

azar

dou

s W

aste

Man

-ag

emen

t.

Ber

rybe

nk

a sh

all e

nsu

re t

hat

th

e tw

o d

rum

s le

ft b

y th

e p

revi

ous

ten

ant a

re

not

kep

t an

y lo

nge

r on

th

e si

te.

Ber

rybe

nk

a sh

all e

nga

ge a

th

ird

par

ty

to d

isp

ose

the

dru

ms

and

en

sure

th

at

the

thir

d p

arty

hol

ds

a va

lid

per

mit

to

man

age

haz

ard

ous

was

te.

Hig

hT

o be

com

-m

ence

d i

m-

med

iate

ly

Sou

rce:

En

vir

onm

enta

l Res

ourc

es M

anag

emen

tC

SR

Ass

essm

ent I

nd

ones

ia -

ES

DD


Sco

pe/

Ref

eren

ceR

equ

irem

ent S

um

mar

yF

ind

ings

Su

mm

ary

Rec

omm

end

atio

n/A

ctio

n P

lan

Lev

el o

f pri

orit

yT

imel

ine

Par

a 13

on

Haz

ard

ous

Mat

eria

ls M

anag

emen

tT

he

clie

nt w

ill a

void

or,

w

hen

avo

idan

ce is

not

pos

-si

ble,

min

imis

e an

d c

ontr

ol

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APPENDIX 2International CSR Standards1. IFC PERFORMANCE STANDARDS

www.ifc.org

The IFC Performance Standards articulates IFC’s strategic commitment to sustainable development. The Perfor-

mance Standards are originally directed towards IFC’s clients, providing guidance on how to identify risks and

impacts as a way of doing business in a sustainable way. The Performance Standards may be and are widely used

by other (financial) institutions as a reference to managing environmental and social risks and impacts to enhance

development opportunities. The eigh Performance Standards are:

Performance Standard 1: Assessment and Management of Environmental and Social Risks and Impacts

Performance Standard 2: Labor and Working Conditions

Performance Standard 3: Resource Efficiency and Pollution Prevention

Performance Standard 4: Community Health, Safety, and Security

Performance Standard 5: Land Acquisition and Involuntary Resettlement

Performance Standard 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources

Performance Standard 7: Indigenous Peoples

Performance Standard 8: Cultural Heritage


Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.

Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.

Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.

Principle 4: We will promote acceptance and implementation of the Principles within the investment industry.

Principle 5: We will work together to enhance our effectiveness in implementing the Principles.

Principle 6: We will each report on our activities and progress towards implementing the Principles.

2. Commitment to responsible investment

The Fund is committed to work with portfolio companies to reduce ESG risks and contribute to sustainable devel-

opment, adding value to the portfolio companies and enhancing business opportunities. The Fund will support the

portfolio companies to continuously work towards achieving long term results within ESG factors, and the Fund

will encourage such activities to be anchored in the business plan.

The Fund promotes the UN Global Compact2 principles, with the addition of good corporate governance and ani-

mal welfare:

� Supporting and respecting the protection of internationally proclaimed human rights.

� Upholding the freedom of association and the effective recognition of the right to collective bargaining; the

elimination of all forms of forced and compulsory labour; the effective abolition of child labour; and the elimi-

nation of discrimination in respect of employment and occupation.

1. Scope

The Responsible Investment Policy is the framework for the environmental, social and governance (ESG) require-

ments for Maj Invest Equity Southeast Asia II (the Fund) managed by Maj Invest Equity (the Manager). The Fund

incorporates ESG criteria into the investment decision-making and ownership practices that directly influence

portfolio companies to enhance performance in these areas.

The Fund’s definition of responsible investment is aligned with that of UNPRI:

“Responsible investment is an approach to investment that explicitly acknowledges the relevance to the investor of

environmental, social and governance factors, and of the long-term health and stability of the market as a whole. It

recognises that the gen-eration of long-term sustainable returns is dependent on stable, well-functioning and well-

governed social, environmental and economic systems.” 1

The base of the work with responsible investment is the UN principles for responsible investment:

APPENDIX 3Responsible Investment Policy


1 www.unpri.org2 www.unglobalcompact.org

� Supporting a precautionary approach to environmental challenges; undertaking initiatives to promote gre-

ater environmental responsibility; and encouraging the development and diffusion of environmentally fri-

endly technologies.

� Securing good corporate governance, including anti-corruption, anti-fraud and transparency.

� Ensuring good animal welfare, including proper treatment of animals used in food production, for other com-

mercial purposes or for testing.

Exclusion list

The Fund will not invest in companies engaged in activities set out in IFC’s exclusion list and EDFI’s/IFU’s exclu-

sion list3.

3. Approach to working with ESG

The Fund requires portfolio companies to comply with national regulations and leg-islation in the country in which

they operate, and work towards implementing relevant international standards. The Fund will only invest in com-

panies if potential ESG risks are, or will be addressed in an appropriate way.

The international standards are based on UN, OECD, IFC and ILO conventions, declarations, agreements and prin-

ciples. Standards could include the IFC Performance Standards, the IFC EHS Guidelines or other credible, globally

or regionally recognised standards that encourage continual improvements. For portfolio companies in sectors for

which IFC EHS guidelines exist, these guidelines are the appropriate benchmark.

Risks, impacts and mitigation measures related to each investment are assessed, consid-ering factors such as the

sector, technology, location, host country regulations, climatic conditions and cultural issues. This process iden-

tifies the significant issues that are rele-vant for the portfolio companies, and an assessment is made of the extent

to which in-ternational standards shall be implemented.

An Action Plan with a reasonable time schedule to meet these standards and comply with the Fund’s responsible in-

vestment requirements is elaborated, as appropriate for each portfolio company. The Action Plan must be approved

by the Manager, and an integral part of the Action Plan is an annual Responsible Investment Status Report that shall

be submitted to the Manager, providing a clear status on ESG compliance. Such report must also include a notifi-

cation of the occurrence of any social, labour, health and safety, se-curity or environmental accident or circum-

stances and measures being taken to address them. Serious incidents must be reported to the Manager immediately.

The Fund monitors each portfolio company’s ESG activities through Board participa-tion, visits, annual reports

and dialogue, with reference to the agreed Action Plan and the Fund’s responsible investment principles adopted

from the UN Global Compact. If a portfolio company is in serious breach, the Manager will engage in dialog with

management and other shareholders and strongly encourage compliance. As a last resort the Fund can consider to

divest from the portfolio company.

4. Responsible Investment requirements for portfolio companies

To implement the Fund’s Responsible Investment Policy, the Fund requires portfolio companies to:

� Operate in compliance with relevant national regulations and legislation, and if this is not the case by the time

of the Fund’s investment, the company must commit to an Action Plan with mitigation measures.


3 www.ifc.org, or www.ifu.dk

� Work towards compliance with international standards for significant issues iden-tified during due diligence,

� Adopt a written responsible investment policy based on the Fund’s responsible investment principles adopted

from the UN Global Compact, and the Fund will strive to include this in the shareholders agreement.

� Appoint a person with overall responsibility for responsible investment, including the management of activi-

ties and resources and delegation of tasks with reference to the Action Plan

� Prepare an annual Responsible Investment Status Report that provides a status on sustainability issues, inclu-

ding the implementation of the action plan, for discus-sion and approval by their board of directors or similar

governance body. This report can be elaborated by a third party. A copy of the report must be sent to the Manager.

5. Management System

The Manager has assigned a senior manager as responsible for the formulation and implementation of the Fund’s

Responsible Investment Policy. Relevant staff of the Manager will contribute to this effort. In most cases, and for

medium and high risk portfolio companies, suitably qualified ESG experts will contribute to the due diligence

and development of an Action Plan, together with the monitoring and formulation of an annual Responsible In-

vestment Status Report.

6. Information and reporting to the Limited Partners

If an incident occurs in one of the Fund’s portfolio companies with serious breach of the Fund’s ESG requirements,

the Manager will inform the Limited Partners about the nature of the breach and planned mitigation measures.

Upon request from the Limited Partners, the Manager will make ESG information available to Limited Partners

and arrange that the Limited Partners can make a visit to overview the ESG initiatives the portfolio companies.

The Limited Partners will visit the portfolio company together with the Manager, and visits shall be scheduled in

accordance with the portfolio company.


MAJ INVEST EQUITY SOUTHEAST ASIA II K/S Gammeltorv 18DK-1457 Copenhagen KTel. +45 33 38 73 00www.majinvest.com

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