The State of Mato Grosso The Secretary for Family Agriculture of Mato Grosso (SEAF) MATO GROSSO SUSTAINABLE DEVELOPMENT OF FAMILY FARMING PROJECT (P175723) Negotiated Version ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) November 16, 2023 1|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN 1. The State of Mato Grosso (the Borrower) will implement the Mato Grosso Sustainable Development of Family Farming Project (the Project), with the involvement of the Secretariat for Family Agriculture (SEAF), with the assistance of Land Administration Unit of Mato Grosso (INTERMAT), the Mato Grosso State Secretariat for the Environment (SEMA), and the Mato Grosso General Comptroller of Justice (CGJ-MT), under the terms of their respective Cooperation Agreements, and the Fundação Uniselva acting as Procurement Agent, under the terms of the Procurement Agent Agreement, as set out in the Loan Agreement. The International Bank for Reconstruction and Development (the Bank) has agreed to provide financing for the Project, as set out in the referred agreement. 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 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 agreement. 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 SEAF, and the Bank agree to update the ESCP to reflect these changes through an exchange of letters signed between the Bank and the Secretary of SEAF. The Borrower shall promptly disclose the updated ESCP. 2|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – MATO GROSSO SUSTAINABLE DEVELOPMENT OF FAMILY FARMING PROJECT (P175723) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY MONITORING AND REPORTING A REGULAR REPORTING Semiannual Reports throughout Project SEAF-Project Management Prepare and submit to the Bank regular monitoring reports on the environmental, social, implementation, commencing after the Unit (PMU) health and safety (ESHS) performance of the Project, including but not limited to the Effective Date. implementation of the ESCP, status of preparation and implementation of E&S Submit each report to the Bank no later instruments required under the ESCP, stakeholder engagement activities, and than 45 days after the end of each functioning of the grievance mechanism(s). reporting period. B INCIDENTS AND ACCIDENTS Notify the Bank within 48 hours after SEAF-PMU Promptly notify the Bank of any incident or accident related to the Project which has, or learning of the incident or accident. In is likely to have, a significant adverse effect on the environment, the affected case of SEA/SH related incidents, communities, the public or workers, including, inter alia, cases of sexual exploitation and notify the Bank within 24 hours after abuse (SEA), sexual harassment (SH), and accidents that result in death, serious or learning of such incidents. multiple injury. Provide sufficient detail regarding the incident or accident, indicating immediate measures taken or that are planned to be taken to address it, and any Provide subsequent report to the Bank information provided by partner implementing agencies (as nominated in paragraph 1, within a timeframe acceptable to the above), Eligible POs, Eligible Beneficiaries, any contractor and supervising entity, as Bank. appropriate. Subsequently, as per the Bank’s request, prepare a report on the incident or accident and propose any measures to prevent its recurrence. C CONTRACTORS’ MONTHLY REPORTS Submit these monthly reports to the SEAF-PMU Require contractors, service providers and supervising firms to provide monthly Bank on a semiannual basis, through monitoring reports on ESHS performance in accordance with the metrics specified in the the reports required under action A respective bidding documents and contracts, and submit such reports to the Bank. above. ESS 1: ASSESSMENT AND MANAGEMENT OF ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS 1.1 ORGANIZATIONAL STRUCTURE – SEAF-PMU Assign the ESHS responsible SEAF Establish and maintain a PMU with a ESHS management team with qualified staff and management coordinator in the SEAF- resources to support management of ESHS risks, including, inter alia, one responsible PMU and hire the three specialized coordinator (from SEAF) and three specialists: i) one environmental specialist, ii) one specialists no later than 90 days after social risk management specialist, and iii) one communication specialist with previous the Effective Date. experience working with family farmers and traditional communities. Thereafter, maintain these positions throughout Project implementation. 3|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – MATO GROSSO SUSTAINABLE DEVELOPMENT OF FAMILY FARMING PROJECT (P175723) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY 1.2 ORGANIZATIONAL STRUCTURE – PARTNER ENTITIES Assign the focal points in the partner SEMA Require INTERMAT, SEMA and CGJ-MT to designate a focal point to supervise – under implementing agencies (as nominated INTERMAT the coordination of the ESHS management team in the PMU (SEAF) – the ESHS risk in paragraph 1, above) no later than 30 CGJ-MT management in each of the Project activities in which these entities collaborate. days after the Effective Date, and thereafter maintain these positions throughout Project implementation. 1.3 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK Adopt the ESMF (final version) no later SEAF-PMU Prepare, adopt, implement and cause the partner implementing agencies (as nominated than 30 days after the Effective Date, SEMA in paragraph 1, above) to adopt and implement, as relevant, the Environmental and and thereafter implement the ESMF INTERMAT Social Management Framework (ESMF) for the Project, consistent with the relevant throughout Project implementation. CGJ-MT ESSs. The ESMF shall include a detailed Exclusion List of activities that are ineligible to receive support under the Project. 1.4 ENVIRONMENTAL AND SOCIAL SCREENING AND MANAGEMENT MEASURES/PLANS SEAF-PMU (a) Carry out and cause the partner implementing agencies (as nominated in paragraph Carry out the screening and assessment SEMA 1, above), as the case may be, to carry out the screening and assessment of the E&S of risks and develop the risk INTERMAT risks and impacts of each Project activities in a manner proportionate to the level of management measures and plans prior CGJ-MT risk, as described in the ESMF and consistent with the ESSs. Any proposed Subproject to the approval of each subproject or or Project activities that are part of the Exclusion List shall be ineligible to receive respective Project activity, and support under the Project; thereafter implement these measures or plans throughout the (b) Implement and cause the partner implementing agencies (as nominated in paragraph implementation of each Subproject or 1, above), Eligible POs, and Eligible Beneficiaries, as the case may be, to implement respective Project activity. the E&S risk management measures or plans for each Subproject or other Project Activity pursuant to the screening and assessment carried out under (a) above. This includes the obligation to not carry out any activities that is part of the Exclusion List 1.5 MANAGEMENT OF CONTRACTORS Prior to the preparation of procurement SEAF/PMU Incorporate the relevant aspects of the E&S instruments and/or plans, the Exclusion List, documents. Supervise contractors and the Labor Management Procedures, into the ESHS specifications of the procurement throughout Project implementation. documents with contractors and terms of reference of consultancies. Thereafter ensure that the contractors and consultants comply with the ESHS specifications of their respective contracts. 1.6 TECHNICAL ASSISTANCE Throughout Project implementation. SEAF-PMU Ensure that the consultancies, studies, capacity building, training, and any other technical assistance activities under the Project are carried out in accordance with terms of reference reviewed and found acceptable to the Bank, that incorporate the relevant requirements of the ESSs, the ESMF, the Stakeholder Engagement Plan, and the 4|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – MATO GROSSO SUSTAINABLE DEVELOPMENT OF FAMILY FARMING PROJECT (P175723) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY Indigenous Peoples Planning Framework. Thereafter ensure that the outputs of such activities comply with the terms of reference. 1.7 CONTINGENT EMERGENCY RESPONSE FINANCING a) The adoption of the CERC-Manual SEAF-PMU (a) Ensure that the CERC Manual includes a description of the ESHS assessment and and, if applicable, the CERC-ESMF management arrangements for CERC activities including, if applicable, the CERC-ESMF Addendums, in form and substance Addendum for the implementation of Component 4 – Contingent Emergency acceptable to the Bank is a Response Financing, in accordance with the ESSs. withdrawal condition under Section III-B, item c, of Schedule 2 of the (b) Prepare, consult, adopt, and disclose any environmental and social (E&S) instruments Loan Agreement for the Project. which may be required for activities under Component 4 – Contingent Emergency Response Financing of the Project, in accordance with the CERC Manual and, if b) Submit the respective E&S applicable, CERC-ESMF Addendum and the ESSs, and thereafter implement the instruments for the Bank’s prior measures and actions required under said E&S instruments, within the timeframes review and approval, and include specified in said E&S instruments. them as part of bidding processes, and in any case, before the carrying out of the relevant Project activities for which the E&S instruments are required. Implement the E&S instruments in accordance with their terms, throughout Project implementation. ESS 2: LABOR AND WORKING CONDITIONS 2.1 LABOR MANAGEMENT PROCEDURES Adopt the LMP no later than 30 days SEAF-PMU Develop, adopt, implement and cause the partner implementing agencies (as nominated after the Project Effectiveness Date, SEMA in paragraph 1, above) to adopt and implement the Labor Management Procedures and thereafter implement the LMP INTERMAT (LMP) for the Project, including, inter alia, provisions on working conditions, throughout Project implementation. CGJ-MT management of workers relationships, occupational health and safety (including Fundação Uniselva personal protective equipment, and emergency preparedness and response), code of conduct (including relating to SEA and SH), prevention of all forms of forced labor and child labor, grievance arrangements for Project workers, and applicable requirements for contractors, subcontractors, and supervising firms. 2.2 GRIEVANCE MECHANISM FOR PROJECT WORKERS Establish the grievance mechanism SEAF-PMU Establish and operate a grievance mechanism for Project workers, as described in the LMP prior engaging Project workers, and and consistent with ESS2. thereafter maintain and operate it throughout Project implementation. ESS 3: RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT 5|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – MATO GROSSO SUSTAINABLE DEVELOPMENT OF FAMILY FARMING PROJECT (P175723) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY 3.1 PEST MANAGEMENT PLAN Same timeframe than action 1.3. SEAF-PMU Adopt, implement and cause the partner implementing agencies (as nominated in SEMA paragraph 1, above) to adopt and implement the elements of a Pest Management Plan INTERMAT as described in the final ESMF and consistent with ESS3. CGJ-MT 3.2 WASTE MANAGEMENT Same timeframe than action 1.3. SEAF-PMU Adopt, implement and cause the partner implementing agencies (as nominated in SEMA paragraph 1, above) to adopt and implement the elements of a Waste Management Plan INTERMAT as described in the final ESMF and consistent with ESS3. CGJ-MT 3.3 RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT Same timeframe than action 1.3. SEAF-PMU Incorporate resource efficiency and pollution prevention and management measures in SEMA the bidding documents as described in the final ESMF and consistent with ESS3. INTERMAT CGJ-MT ESS 4: COMMUNITY HEALTH AND SAFETY 4.1 COMMUNITY HEALTH AND SAFETY Same timeframe than action 2.1. SEAF-PMU Develop, adopt, implement and cause the partner implementing agencies (as nominated SEMA in paragraph 1, above) to adopt and implement the worker’s Code of Conduct as INTERMAT described in the LMP in all contracts with Eligible Commercial Family Farming Pos, CGJ-MT Eligible Emerging Family Farming PO, and relationships with Eligible Beneficiaries (Family farmers and Indigenous Peoples and Traditional Communities). ESS 5: LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT 5.1 VOLUNTARY LAND DONATIONS Same timeframe than action 1.3. SEAF-PMU Voluntary land donations shall only be acceptable only if: a) the potential donor or donors have been appropriately informed and consulted about the Project and the choices available to them; (b) potential donors are aware that refusal is an option, and have confirmed in writing their willingness to proceed with the donation; (c) the amount of land being donated is minor and will not reduce the donor’s remaining land area below that required to maintain the donor’s livelihood at current levels; (d) no household relocation is involved; (e) the donor is expected to benefit directly from the Project; and (f) for community or collective land, donation can only occur with the consent of individuals using or occupying the land voluntary basis; all as set out in the ESMF, in accordance with the requirements of ESS5, and subject to the prior approval of the Bank. ESS 6: BIODIVERSITY CONSERVATION AND SUSTAINABLE MANAGEMENT OF LIVING NATURAL RESOURCES 6.1 BIODIVERSITY RISKS AND IMPACTS No later than 30 days after the SEAF-PMU Effective Date and throughout Project SEMA implementation. INTERMAT CGJ-MT 6|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – MATO GROSSO SUSTAINABLE DEVELOPMENT OF FAMILY FARMING PROJECT (P175723) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY As part of the ESMF, assess the potential direct and indirect risks and impacts of the Project on habitats and biodiversity, particularly the risks of expansion of production areas and the use of chemical products harmful to pollinators and other biodiversity elements, and adopt measures to minimize these risks and impacts on habitats and biodiversity, as set out in the ESMF. ESS 7: INDIGENOUS PEOPLES/SUB-SAHARAN AFRICAN HISTORICALLY UNDERSERVED TRADITIONAL LOCAL COMMUNITIES 7.1 INDIGENOUS PEOPLES PLANNING FRAMEWORK (a) Adopt and implement the IPPF no SEAF-PMU Develop, adopt, implement and cause the partner implementing agencies (as nominated later than 30 days after the Effective SEMA in paragraph 1, above) to adopt and implement the Indigenous Peoples Planning Date, and thereafter implement the Framework (IPPF), consistent with ESS 7. IPPF throughout Project implementation. (b) Adopt any required IPP prior to the carrying out any activity that requires the preparation of such IPP, as set out in the IPFF. Once adopted, implement the respective IPP throughout Project implementation. ESS 8: CULTURAL HERITAGE 8.1 CULTURAL HERITAGE RISKS AND IMPACTS Same timeframe than action 1.3. SEAF-PMU As set out in the ESMF and consistent with both the country’s legislation and ESS8, SEMA develop, adopt, implement and cause the partner implementing agencies (as nominated INTERMAT in paragraph 1, above) to adopt and implement: CGJ-MT (a) the principles, rules, guidelines and procedures to identify – through prior research and consultation with Eligible Beneficiaries – natural areas with cultural heritage significance that might be located within the areas of intervention, the people who value such features and the people with authority to represent and negotiate regarding the location, protection and use of the cultural heritage; and (b) the principles, rules, guidelines and procedures to be followed by the implementing agencies, contractors and subcontractors if previously unknown cultural heritage is encountered during Project activities. ESS 9: FINANCIAL INTERMEDIARIES Not relevant for the Project. ESS 10: STAKEHOLDER ENGAGEMENT AND INFORMATION DISCLOSURE 7|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – MATO GROSSO SUSTAINABLE DEVELOPMENT OF FAMILY FARMING PROJECT (P175723) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY 10.1 STAKEHOLDER ENGAGEMENT PLAN PREPARATION AND IMPLEMENTATION Adopt and implement the SEP no later SEAF-PMU Adopt, implement and cause the partner implementing agencies (as nominated in than 30 days after the Effective Date, SEMA paragraph 1, above) to adopt and implement the Stakeholder Engagement Plan and thereafter implement the SEP INTERMAT prepared for the Project, consistent with ESS 10, which shall include, inter alia, measures throughout Project implementation CGJ-MT to provide stakeholders with timely, relevant, understandable and accessible information on the Project, and to consult with them in culturally appropriate manners, which is free of manipulation, interference, coercion, discrimination and intimidation. 10.2 PROJECT GRIEVANCE MECHANISM Adopt the grievance mechanism no SEAF-PMU Adopt, publicize, maintain, and operate the General State Ombudsman Office (including later than 30 days after the Effective SEMA the Sectoral Ombudsman Offices at SEAF, SEMA and INTERMAT) as the Project’s Date, and thereafter maintain and INTERMAT grievance mechanism, to receive and facilitate resolution of concerns and grievances in operated the grievance mechanism CGJ-MT relation to the Project, promptly and effectively, in a transparent manner that is throughout Project implementation. culturally appropriate and readily accessible to all Project-affected parties, at no cost and Semi-annual reports shall be sent to the without retribution, including concerns and grievances filed anonymously, as described Bank to provide details on the in the SEP and consistent with ESS10. functioning of the grievance mechanism as part of the Reports required under The grievance mechanism shall be equipped to receive, register, and facilitate the action A above. 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 Provide training on the Bank’s Environmental and Social Standards and Project’s E&S First session carried out no later than SEAF-PMU instruments for the ESHS Management Team in SEAF-PMU, the focal points in the 120 days after the Effective Date, and SEMA partner implementing agencies (as nominated in paragraph 1, above) and all Project thereafter in an annual basis (or INTERMAT workers providing technical guidance for the elaboration of CSA Family Business Plans. extraordinarily, as needed) throughout CGJ-MT Project implementation. 8|Page