Republic Serbia Ministry of Science, Technological Development, and Innovation Serbia Accelerating Innovation and Growth Entrepreneurship AI and BIO4 Original Financing (P170185) and Additional Financings (P174542 and P181485) ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) Negotiations version July, 2024 1|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN 1. The Republic of Serbia (the Borrower) is implementing the Serbia Accelerating Innovation and Growth Entrepreneurship Project (the Project), with the involvement of the Ministry of Science, Innovation and Technological Development (NITRA), the Science Fund (SF), and the Innovation Fund (IF), as set out in the Loan Agreements (Loan _____-YF and Loan ___ -YF) and Grant Agreement (Grant ____-YF). The International Bank for Reconstruction and Development (the Bank) has agreed to provide the original financing (P170185), Additional Financing I (P174542) and Additional Financing II (P181485) for the Project, as set out in the referred agreements. This ESCP supersedes previous versions of the ESCP for the Project and shall apply both to the original and the additional financings for Project referred to above. 2. The Borrower shall ensure that the Project is carried out in accordance with the Environmental and Social Standards (ESSs) and this Environmental and Social Commitment Plan (ESCP), in a manner acceptable to the World Bank. The ESCP is a part of the Loan Agreement. Unless otherwise defined in this ESCP, capitalized terms used in this ESCP have the meanings ascribed to them in the referred agreements. 3. Without limitation to the foregoing, this ESCP sets out material measures and actions that the Borrower shall carry out or cause to be carried out, including, as applicable, the timeframes of the actions and measures, institutional, staffing, training, monitoring, and reporting arrangements, and grievance management. The ESCP also sets out the environmental and social (E&S) instruments that shall be adopted and implemented under the Project, all of which shall be subject to prior consultation and disclosure, consistent with the ESS, and in form and substance, and in a manner acceptable to the Bank. Once adopted, said E&S instruments may be revised from time to time with prior written agreement by the Bank. 4. As agreed by the Bank and the Borrower, this ESCP will be revised from time to time if necessary, during Project implementation, to reflect adaptive management of Project changes and unforeseen circumstances or in response to Project performance. In such circumstances, the Borrower, through the Ministry of Science, Innovation and Technological Development, and the Bank agree to update the ESCP to reflect these changes through an exchange of letters signed between the Bank and the Borrower (Minister of Science Innovation, and Technological Development, Ministry of Science Innovation, and Technological Development). The Borrower shall promptly disclose the updated ESCP. 2|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Serbia Accelerating Innovation and Growth Entrepreneurship Project MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY MONITORING AND REPORTING A REGULAR REPORTING Prepare and submit to the Bank regular monitoring reports on Submit six-monthly reports to the NITRA, through the Project the environmental, social, health and safety (ESHS) Bank throughout Project Implementation Unit performance of the Project, including but not limited to the implementation. Submit each report (PIU) implementation of the ESCP, status of preparation and to the World Bank no later than 30 implementation of E&S instruments required under the ESCP, days after the end of each reporting stakeholder engagement activities, and functioning of the period. grievance mechanism(s). B INCIDENTS AND ACCIDENTS Promptly notify the Bank of any incident or accident related to Notify the Bank no later than 48 Science Fund (SF) the Project which has, or is likely to have, a significant adverse hours after learning of the incident effect on the environment, the affected communities, the or accident. Innovation Fund (IF) public or workers, including, inter alia, cases of sexual exploitation and abuse (SEA), sexual harassment (SH), and NITRA, through the PIU accidents that result in death, serious or multiple injury. Provide sufficient detail regarding the scope, severity, and possible causes of the incident or accident, indicating immediate measures taken or that are planned to be taken to address it, and any information provided by any contractor and/or supervising firm, as appropriate. Subsequently, at the Bank’s request, prepare a report on the Provide subsequent report to the incident or accident and propose any measures to address it Bank within a timeframe acceptable and prevent its recurrence. to the Bank 3|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Serbia Accelerating Innovation and Growth Entrepreneurship Project MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY C MONTHLY REPORTS Submit monthly reports to the Bank NITRA, through the PIU Require [SF, IF, Artificial Intelligence Institute, BIO4 Campus], as annexes to the reports to be contractors and supervising firms to provide monthly submitted under action A above. monitoring reports on the ESHS performance in accordance with the metrics specified in the respective bidding documents and contracts and submit such reports to the Bank. ESS 1: ASSESSMENT AND MANAGEMENT OF ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS 1.1 ORGANIZATIONAL STRUCTURE Maintain a PIU as set out in the Loan Maintain the existing PIU within NITRA with qualified staff and and Grant Agreements. NITRA resources to support management of ESHS risks and impacts of the Project, including hiring an experienced full time Hire one full time environmental environmental expert and an experienced full time social specialist and one full time social expert. specialist before the opening of any grants calls to be financed by the Additional Financing II and thereafter maintain these positions throughout Project implementation. 1.2 ENVIRONMENTAL AND SOCIAL INSTRUMENTS Implement the Environmental and Social Management Implement the updated ESMF, Framework (ESMF) for the Project, consistent with the relevant throughout Project implementation. NITRA, through the PIU ESSs. SF and IF Adopt and implement, Environmental Management Plans Adopt the ESMP prior to the carrying (ESMPs) or ESMP Checklists (ESMP-CL), and other relevant E&S out of the Project activity that instruments as required under the ESMF for the respective requires the adoption of such ESMP. Project activities, following E&S screening of respective Project Once adopted, implement the activities, all in accordance with the relevant Environmental respective ESMP throughout Project and Social Standards (ESSs). The proposed activities described implementation. in the exclusion lists set out in the ESMF shall be ineligible to receive financing under the Project. 4|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Serbia Accelerating Innovation and Growth Entrepreneurship Project MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY NITRA, through the PIU SF and IF 1.3 MANAGEMENT OF CONTRACTORS Ensure that the relevant aspects of this ESCP, including, inter As part of the preparation of NITRA, through the PIU, SF alia, the relevant E&S instruments, the Labor Management procurement documents and and IF Procedures, and code of conduct, are incorporated into the respective contracts ESHS specifications of the procurement documents and Supervise contractors throughout contracts with contractors and supervising firms. Thereafter, Project implementation ensure that the contractors and supervising firms comply and cause subcontractors to comply with the ESHS specifications of their respective contracts. 1.4 TECHNICAL ASSISTANCE Ensure that the consultancies, studies (including feasibility Throughout Project implementation. NITRA, through the PIU studies, if applicable), designs, capacity building, training, and SF and IF any other technical assistance (TA) activities under the Project (including, for BIO4 and AI Institute) are carried out in accordance with terms of reference acceptable to the Bank, that are consistent with the ESSs. Thereafter, ensure that the outputs of such activities, are consistent with the terms of reference. 5|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Serbia Accelerating Innovation and Growth Entrepreneurship Project ESS 2: LABOR AND WORKING CONDITIONS 2.1 LABOR MANAGEMENT PROCEDURES Implement the updated Labor Management Procedures (LMP) Implement the updated LMP NITRA, through the PIU for the Project, integrated into the updated ESMF including, throughout Project implementation. inter alia, on working conditions, management of workers relationships, occupational health and safety (including personal protective equipment, and emergency preparedness and response), code of conduct (including relating to SEA and SH), forced labor, child labor, grievance arrangements for Project workers, and applicable requirements for contractors, subcontractors, and supervising firms. 2.2 GRIEVANCE MECHANISM FOR PROJECT WORKERS Update the existing grievance NITRA, through the PIU mechanism prior to engaging new Update the existing grievance mechanism for project workers, Project workers under the Additional as described in the LMP and consistent with ESS2. Financing II and thereafter maintain and operate it throughout Project implementation. ESS 3: RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT 3.1 WASTE MANAGEMENT PLAN NITRA, through the PIU Implement waste management measures, under the Same timeframe as for the adoption ESMPs/ESMP Checklists, to manage hazardous and non- and implementation of the hazardous wastes, consistent with ESS3. ESMP/ESMP-CL under action 1.2 above in accordance with the ESMF. 3.2 RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND NITRA, through the PIU MANAGEMENT Same timeframe as for the adoption Incorporate and apply resource efficiency and pollution and implementation of the prevention and management measures, including ensuring ESMP/ESMP-CL under action 1.2 compliance with energy efficiency (EE) requirements in above in accordance with the ESMF. accordance with ESS3 and the World Bank Group Environmental, Health, and Safety (EHS) Guidelines, in the ESMPs/ESMP-CL to be prepared under action 1.2 above. 6|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Serbia Accelerating Innovation and Growth Entrepreneurship Project ESS 4: COMMUNITY HEALTH AND SAFETY 4.1 COMMUNITY HEALTH AND SAFETY Assess, manage, monitor, and report any direct and indirect Mitigation measures, including RHAs NITRA, through the PIU risks and impacts to the community resulting from Project and and ERPs shall be prepared and sub-project activities, including research activities and their incorporated in the ESMPs- ESMP- commercial use and include mitigation measures in the ESMPs CLs with the same timeframe as for to be prepared in accordance with the ESMF. the adoption and implementation of the ESMP/ESMP-CL in accordance Prepare Risk Hazard Assessment (RHAs) and Emergency with the ESMF under action 1.2 Response Plans (ERPs), for BIO4 activities financed under the above. Project, and for each research activities that will be carried out in any other laboratory and incorporate the RHAs and ERPs into the Environmental and Social Management Plans (ESMPs) in accordance with the Environmental and Social Management Framework (ESMF). Ensure that the risks and impacts of the project are assessed, managed, and monitored in a manner acceptable to the Bank. ]ESS 5: LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT 5.1 Not currently relevant for the Project. ESS 6: BIODIVERSITY CONSERVATION AND SUSTAINABLE MANAGEMENT OF LIVING NATURAL RESOURCES 6.1 BIODIVERSITY RISKS AND IMPACTS NITRA, through the PIU Assess and manage relevant aspects of this standard in Same timeframe as for the adoption accordance with the ESMF and consistent with ESS6. Include and implementation of the ESMPs relevant measures in the ESMPs and ESMP-CLs to be prepared and ESMP-CLs under action 1.2 under action 1.2 above. above. ESS 7: INDIGENOUS PEOPLES/SUB-SAHARAN AFRICAN HISTORICALLY UNDERSERVED TRADITIONAL LOCAL COMMUNITIES 7.1 Not relevant for the Project ESS 8: CULTURAL HERITAGE CULTURAL HERITAGE RISKS AND IMPACTS Same timeframe as for the adoption NITRA, through the PIU Assess and manage relevant aspects of this standard in and implementation of ESMPs accordance with the ESMF and consistent with ESS8. Include under action 1.2 above. relevant measures in the ESMPs and ESMP CLs. 7|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Serbia Accelerating Innovation and Growth Entrepreneurship Project CHANCE FINDS Same timeframe as for the adoption NITRA, through the PIU Describe and implement chance find procedures as part of the and implementation of ESMPs/ESMP-CLs under the Project. ESMPs/ESMP-CLs under action 1.2 above. ESS 9: FINANCIAL INTERMEDIARIES 9.1 Not relevant for the Project ESS 10: STAKEHOLDER ENGAGEMENT AND INFORMATION DISCLOSURE 10.1 STAKEHOLDER ENGAGEMENT PLAN PREPARATION AND IMPLEMENTATION Implement the updated Stakeholder Engagement Plan (SEP) Implement the updated SEP NITRA, through the PIU which incorporates aspects related to the activities financed throughout Project implementation. under the Second Additional Financing. The updated SEP for the Project, consistent with ESS10, includes measures to, inter alia, provide stakeholders with timely, relevant, understandable, and accessible information, and consult with them in a culturally appropriate manner, which is free of manipulation, interference, coercion, discrimination and intimidation. Ensure that all Project activities entail proactive involvement Before activities start and with stakeholders and affected communities, with particular throughout project implementation. focus on those in health sector and earmarked for commercialization support. 8|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Serbia Accelerating Innovation and Growth Entrepreneurship Project 10.2 PROJECT GRIEVANCE MECHANISM Update and publicize the existing grievance mechanism to Update and publicize the grievance NITRA, through the PIU incorporate the activities financed under the Second Additional mechanism no later than 30 days Financing. Thereafter, maintain, and operate the updated after the Effective Date of the grievance mechanism, which shall be equipped to receive and Additional Financing II, and facilitate resolution of concerns and grievances in relation to thereafter maintain and operate the the Project, promptly and effectively, in a transparent manner mechanism throughout Project that is culturally appropriate and readily accessible to all implementation. Project-affected parties, at no cost and without retribution, including concerns and grievances filed anonymously, in a manner consistent with ESS10. The grievance mechanism shall be equipped to receive, register, and facilitate the resolution of SEA/SH complaints, including through the referral of survivors to relevant gender- based violence service providers, all in a safe, confidential, and survivor-centered manner. CAPACITY SUPPORT CS1 Training for PIU staff Throughout Project implementation • specific aspects of environmental and social NITRA, through the PIU assessment Training for Grant recipients • emergency preparedness and response • community health and safety. CS2 Training for grant recipients, and other scientific research NITRA, through the PIU institutions on ESF 9|Page