Fundação Getulio Vargas (FGV) BR Amazon Sustainable Landscapes: Xingu Project (P504126) ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) DRAFT Appraisal August 22, 2024 1 ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN 1. The Ministry of Environment and Climate Change (MMA) will implement, through the Fundação Getúlio Vargas (FGV), the BR Amazon Sustainable Landscapes; Xingu Project (the Project), with the involvement of the Chico Mendes Institute for Biodiversity Conservation (ICMBio), the Brazilian Forest Service (SFB), the Pará Secretariat of Environment and Sustainable Development (SEMAS), and the Institute for Forestry Development (IDEFLOR-Bio) as set out in the Grant Agreement (the Agreement). The International Bank for Reconstruction and Development (the Bank) acting as the administrator of the Global Environment Facility, has agreed to provide financing for the Project, as set out in the Agreement. 2. The Recipient 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 Agreement. Unless otherwise defined in this ESCP, capitalized terms used in this ESCP have the meanings ascribed to them in the Agreement. 3. Without limitation to the foregoing, this ESCP sets out material measures and actions that the Recipient shall carry out or cause to be carried out, including, as applicable, their respective timeframes; institutional, staffing, training, monitoring and reporting arrangements; and grievance management. The ESCP also sets out the environmental and social (E&S) documents that shall be prepared or updated, consulted, disclosed and implemented under the Project, consistent with the ESSs, in form and substance acceptable to the Bank. Said E&S documents may be revised from time to time with prior written agreement by the Bank. As provided for under the referred Agreement, the Recipient shall ensure that there are sufficient funds available to cover the costs of implementing the ESCP. 4. As agreed by the Bank and the Recipient, this ESCP will be revised from time to time, if necessary, to reflect adaptive management of Project changes or unforeseen circumstances or in response to Project performance. In such circumstances, the Bank and the Recipient agree to update the ESCP to reflect these changes through an exchange of letters signed between the Bank and the Recipient’s Representative specified in the Agreement of Fundação Getúlio Vargas. The Recipient shall promptly disclose the updated ESCP. 5. The subsection on “Indicators for Implementation Readiness” below identifies the actions and measures to be monitored to assess Project readiness to begin implementation in accordance with this ESCP. Nevertheless, all actions and measures in this ESCP shall be implemented as set out in the “Timeframe” column below irrespective of whether they are listed in the referred subsection. 2 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY IMPLEMENTATION ARRANGEMENTS AND CAPACITY SUPPORT A ORGANIZATIONAL STRUCTURE a.1. Establish a PEU as a condition FGV-PEU of Project Effectiveness. a. Establish and maintain a Project Executing Unit (PEU) with qualified staff and resources to support management of environmental, social, health and safety (E&S) risks and impacts of the a.2. Hire or appoint the Project including: an environmental specialist and a social specialist. Other specialists may be environment and social specialist included as necessary during Project implementation. no later than 30 days from Project Effectiveness and thereafter b. Include in the inter-institutional agreements with executing partners (MMA, ICMBio, SFB, SEMAS maintain the PEU and these and IDEFLOR-Bio) the commitment to manage E&S risks and impacts of Project activities. positions throughout Project implementation. b. As a condition of Project Effectiveness. B CAPACITY BUILDING PLAN/MEASURES FGV-PEU a. Prepare and submit to the Bank Prepare and implement the following capacity building measures: an E&S Risk Management training plan by 120 days after Project a. Prepare an E&S Risk Management training plan for periodic capacity-building of Project staff, Effectiveness. addressing E&S requirements as set out in the Project's ESF documents to be prepared according to this ESCP requirements. b. Conduct periodical training sessions as defined in the E&S Risk b. Provide periodical training sessions for PEU staff and executing partners on ESF standards Management Training Plan. relevant for the Project and specific issues, such as SEA/SH and code of conduct, grievance redress mechanisms, community health and safety. MONITORING AND REPORTING C REGULAR REPORTING Submit semestral reports to the FGV-PEU Bank throughout Project Prepare and submit to the Bank regular monitoring reports on the environmental, social, health and implementation, commencing after safety (H&S) performance of the Project. The reports shall include: the Effective Date. Submit each report to the Bank no later than 45 • Status of preparation and implementation of E&S documents required under the ESCP. days after the end of each reporting period. • Summary of E&S compliance of Project activities within the reported period. • Summary of stakeholder engagement activities carried out as per the Stakeholder Engagement Plan. 3 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY • Complaints submitted to the grievance mechanism(s), the grievance log, progress made in resolving them and lessons learned. • Number and status of resolution of incidents and accidents reported under action D below. D INCIDENTS AND ACCIDENTS a. Notify the Bank no later than 48 FGV-PEU hours after learning of the incident a. Notify the Bank of any incident or accident relating to the Project which has, or is likely to or accident. Provide available have, a significant adverse effect on the environment, the affected communities, the public details upon request. or workers, including those resulting in death or significant injury to workers or the public; acts of violence, discrimination or protest; unforeseen impacts to cultural heritage or b. Provide review report and biodiversity resources; pollution of the environment; dam failure; forced or child labor; Corrective Action Plan to the Bank displacement without due process (forced eviction); allegations of sexual exploitation or no later than 10 days following the abuse (SEA), or sexual harassment (SH); or disease outbreaks. Provide available details of submission of the initial notice, the incident or accident to the Bank upon request. unless a different timeframe is agreed to in writing by the Bank. b.Arrange for an appropriate review of the incident or accident to establish its immediate, underlying and root causes. Prepare, agree with the Bank, and implement a Corrective Action Plan that sets out the measures and actions to be taken to address the incident or accident and prevent its recurrence. ESS 1: ASSESSMENT AND MANAGEMENT OF ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS 1.1 ENVIRONMENTAL AND SOCIAL ASSESSMENTS AND/OR PLANS a. Prepare the ESMF and obtain the FGV-PEU Bank’s no-objection to the ESMF no a. Prepare an Environmental and Social Management Framework (ESMF) for the Project, in a later than 30 days after Project manner consistent with the relevant ESSs. Effectiveness, and thereafter implement the ESMF throughout b. Adopt, implement, and cause all partner implementing agencies to adopt and implement Project implementation. the ESMF. b. Throughout Project implementation. 1.2 TECHNICAL ASSISTANCE Throughout Project FGV-PEU implementation. Carry out the consultancies, studies, technical assistance on forestry and bioeconomy, capacity building, training, and any other technical assistance activities under the Project in accordance with terms of reference acceptable to the Bank, that are consistent with the ESSs. Thereafter prepare and finalize the outputs of such activities in compliance with the terms of reference. ESS 2: LABOR AND WORKING CONDITIONS 2.1 LABOR MANAGEMENT PROCEDURES a. Same timeframe as for action FGV-PEU 1.1 above. 4 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY a. Incorporate in the ESMF, adopt, implement, and cause all partner implementing agencies to adopt and implement, the following measures for the proper management of the working b. Throughout Project conditions of Project workers: implementation. (i) Comply with the Brazilian labor regulations on 1) terms and conditions of employment, 2) protection of the work force (banning child and forced labor), 3) occupational health and safety, and iv) grievance mechanisms for raising concerns/grievances related with working places and conditions without reprisal; (ii) Adopt all measures needed to either require that primary suppiers take measures to remedy promptly and appropriately cases whenever child labor or forced labor inadvertently happen or to replace them in line with ESS 2 requirements; (iii) Adopt and cause all contractors and subcontractors to adopt and implement the SEA/SH Prevention Plan (that will be described in the Project Operation Manual and reproduced in all bidding documents), setting standards of behavior and establishing responsibilities and procedures for responding to SEA/SH substantiated allegations; (iv) Ensure that 1) OHS procedures are fully applied to community workers, and 2) register evidence that their works are provided on a voluntary basis, do not involve children under the legal age and do not resemble forced labor; and (v) Report to the Bank on all incidents and accidents that may cause harm to the health and safety of project workers (and beneficiary community members) or expose them to any form of discrimination, harassment and abuse, and take measures to prevent their recurrence. b. State and replicate all these requirements in all bidding documents for hiring contractors. 2.2 GRIEVANCE MECHANISM FOR PROJECT WORKERS Establish the grievance mechanism FGV-PEU prior to engaging Project workers Establish and operate a grievance mechanism where Project workers can raise concerns about and thereafter maintain and working conditions and terms (including SEA/SH and Gender-Based Violence issues) in a manner operate it throughout Project consistent with ESS 2. implementation. ESS 3: RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT 3.1 WASTE MANAGEMENT Same timeframe as for action 1.1 FGV-PEU above. Evaluate waste management risks related to hazardous and non-hazardous waste generated by project activities and incorporate related waste management measures consistent with ESS3 in the ESMF to be prepared under action 1.1 above, to reduce pollution and contamination risks related to the Project. 3.2 PEST MANAGEMENT Same timeframe as for action 1.1 FGV-PEU above. Incorporate in the ESMF to be prepared under action 1.1 above the pest management options acceptable under the ecological sustainability principles of the Project and consistent with the requirements of ESS 3. 5 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY 3.3 RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT Same timeframe as for action 1.1 FGV-PEU above. Incorporate resource efficiency and pollution prevention and management measures in the ESMF to be prepared under action 1.1 above. ESS 4: COMMUNITY HEALTH AND SAFETY 4.1 COMMUNITY HEALTH AND SAFETY Same timeframe as for action 1.1 FGV-PEU above. Assess and manage specific risks and impacts to the community arising from Project activities, including, inter alia, behavior of Project workers, risks of labor influx, response to emergency situations, and include mitigation measures in the ESMF to be prepared under action 1.1 above. 4.2 SEA AND SH RISKS FGV-PEU Submit the SEA/SH Action Prepare and implement a SEA/SH Action Procedure as part of the ESMF to identify and implement Procedure to the World Bank for SEA/SH measures, including mapping of services for victims of SEA/SH in the Project intervention review and no-objection no later areas, codes of conduct for Project workers, and procedures to receive, register, and facilitate the than 30 days after Project resolution of SEA/SH complaints, including through the grievance mechanism and the referral to Effectiveness, and thereafter service providers, all in a safe and confidential manner. implement the SEA/SH Action Procedure throughout Project implementation. ESS 5: LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT 5.1 PROCESS FRAMEWORK Submit the updated PF to the Bank FGV-PEU for review and no-objection no Update, disclose, adopt, and implement the existing Process Framework (PF) for the Project in a later than 30 days after Project manner consistent with ESS 5 and the provisions of the Brazilian National System of Protected Areas Effectiveness, and thereafter (SNUC – Law 9.985 of 18 July 2000). implement the PF throughout Project implementation. ESS 6: BIODIVERSITY CONSERVATION AND SUSTAINABLE MANAGEMENT OF LIVING NATURAL RESOURCES 6.1 BIODIVERSITY RISKS AND IMPACTS Same timeframe as for action 1.1 FGV-PEU above. Incorporate as part of the ESMF to be prepared under action 1.1 above, biodiversity conservation and sustainable use measures consistent with ESS 6, including those related to the sustainable use of natural resources (timber, non-timber, aquatic), agroforestry and other production and nature- based income-generation activities under Components 1 and 2. ESS 7: INDIGENOUS PEOPLES/SUB-SAHARAN AFRICAN HISTORICALLY UNDERSERVED TRADITIONAL LOCAL COMMUNITIES 6 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY 7.1 INDIGENOUS PEOPLES FRAMEWORK AND PLANS a. Submit the IPPF to the FGV-PEU Bank for review and no- a. Update, publicly disclose, adopt, and implement the existing Indigenous Peoples Planning objection no later than 30 Framework (IPPF) for the Project, in a manner consistent with ESS 7 and the applicable Brazilian days after Project regulations. Effectiveness, and thereafter implement the b. Prepare and implement an Indigenous Peoples Plan (IPP) for activities under the Project to be IPPF throughout Project conducted at the Juruna do Km 17 Indigenous Area in a manner consistent with the IPPF and the implementation. requirements of ESS 7. b. The IPP shall be developed and submitted for Bank review and no-objection prior to the initiation of these activities and implemented throughout their implementation. ESS 8: CULTURAL HERITAGE 8.1 CULTURAL HERITAGE RISKS AND IMPACTS Same timeframe as for action 1.1 FGV-PEU above. Incorporate measures to prevent impacts on cultural heritage consistent with ESS 8 in the ESMF to be prepared under action 1.1 above. 8.2 CHANCE FINDS Same timeframe as for action 1.1 FGV-PEIU above. Describe and implement the chance finds procedures as part of the ESMF of the Project, to be prepared under action 1.1 above. Measures should be consistent with ESS 8 and national legislation requirements to protect and report chance finds that might occur as a result of the implementation of Project activities. ESS 9: FINANCIAL INTERMEDIARIES This standard is not relevant. ESS 10: STAKEHOLDER ENGAGEMENT AND INFORMATION DISCLOSURE 10.1 STAKEHOLDER ENGAGEMENT PLAN Finalize, disclose, and adopt the FGV-PEU SEP no later than 30 days after Finalize, adopt, and implement a Stakeholder Engagement Plan (SEP) for the Project, in a manner Project Effectiveness, and consistent with ESS10, which shall include measures to, inter alia, provide stakeholders with timely, thereafter implement the SEP relevant, understandable, and accessible information, and consult with them in a culturally throughout Project appropriate manner, which is free of manipulation, interference, coercion, discrimination and implementation. intimidation. 7 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY 10.2 PROJECT GRIEVANCE MECHANISM a. Same timeframe as for action FGV-PEU a. Establish, maintain, and operate an accessible grievance mechanism to receive and facilitate 10.1 resolution of concerns and grievances in relation to the Project (as well as SEA/SH complaints, including through the referral of survivors to relevant gender-based violence service providers, all in b. Throughout Project a safe, confidential, and survivor-centered manner), in a manner consistent with ESS10. implementation. b. Publicize SAR’s Ombudsman Office contact information through all communication materials c. Same timeframe as action C. about the Project. c. Report to the Bank on the handling of concerns and grievances raised in relation to the project, including a specific section on the handling of concerns and complaints raised by Indigenous Peoples and other vulnerable social groups. INDICATORS FOR IMPLEMENTATION READINESS The following actions are indicators for implementation readiness: Section A (a and b) 1.1 2.1 3.1 3.2 3.3 4.2 5.1 6.1 7.1 a 10.1 10.2 8