State of Pernambuco Agronomic Institute of Pernambuco (IPA) Agroecology and Sustainable Rural Development in Pernambuco PE Agroecological (P500431) [Draft] ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) August, 2024 1|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN 1. The Government of Pernambuco (the Borrower) will implement the Agroecology and Sustainable Rural Development Project in Pernambuco - PE Agroecological Project (the Project), with the involvement of the Agronomic Institute of Pernambuco (Instituto Agronômico de Pernambuco - IPA), the Secretariat of Environment, Sustainability and Fernando de Noronha (Secretaria de Meio Ambiente, Sustentabilidade e de Fernando de Noronha - SEMAS), and the Secretariat of Planning, Management and Regional Development (Secretaria de Planejamento, Gestão e Desenvolvimento Regional - SEPLAG), as set out in the Loan Agreement. The International Bank for Reconstruction and Development (the World Bank) has agreed to provide the financing (P500431) 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 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 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 World Bank. Once adopted, said E&S instruments may be revised from time to time with prior written agreement by the World Bank. 4. As agreed by the World 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 Agronomic Institute of Pernambuco (IPA) and the World Bank agree to update the ESCP to reflect these changes through an exchange of letters signed between the World Bank and the Agronomic Institute of Pernambuco (IPA). The Borrower shall promptly disclose the updated ESCP. 2|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – PE Agroecological (P500431) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY MONITORING AND REPORTING A REGULAR REPORTING Submit six-monthly reports to the IPA/PMU Prepare and submit to the World Bank regular monitoring reports on the environmental, World Bank throughout Project social, health and safety (ESHS) performance of the Project, including but not limited to implementation, commencing after the the implementation of the ESCP, status of preparation and implementation of E&S Effective Date. Submit each report to instruments required under the ESCP, stakeholder engagement activities, and the World Bank no later than 45 days functioning of the grievance mechanism. after the end of each reporting period. B INCIDENTS AND ACCIDENTS Notify the World Bank no later than 48 IPA/PMU Promptly notify the World Bank of any incident or accident related to the Project which hours after learning of the incident or has, or is likely to have, a significant adverse effect on the environment, the affected accident, or at most 24 hours after communities, the public or workers, including, inter alia, cases of sexual exploitation and SEA/SH case. abuse (SEA), sexual harassment (SH), and accidents that result in death, serious or multiple injury. Provide sufficient detail regarding the scope, severity, and possible Provide subsequent report to the World causes of the incident or accident, indicating immediate measures taken or that are Bank within a timeframe acceptable to planned to be taken to address it, and any information provided by any contractor the World Bank. and/or supervising firm, as appropriate. Subsequently, at the World Bank’s request, prepare a report on the incident or accident and propose any measures to address it and prevent its recurrence. C CONTRACTORS’ MONTHLY REPORTS Submit the monthly reports to the IPA/PMU Require contractors and supervising firms to provide monthly monitoring reports on World Bank as annexes to the reports to ESHS performance in accordance with the metrics specified in the respective bidding be submitted under action A above. documents and contracts and submit such reports to the World Bank. ESS 1: ASSESSMENT AND MANAGEMENT OF ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS 1.1 ORGANIZATIONAL STRUCTURE Establish and maintain a PMU, as an IPA/PMU Additional Condition of Effectiveness, as Establish and maintain a Program Management Unit (PMU) within IPA, with qualified set out in the legal agreement and staff and resources to support management of ESHS risks and impacts of the Project, subsequently maintain these positions including, as a minimum, an environmental specialist and a social specialist. during the implementation of the Project. 1.2 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK (ESMF) Adopt the ESMF no later than 30 days IPA/PMU of the Effective Date and thereafter implement the ESMF throughout Project implementation. 3|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – PE Agroecological (P500431) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY Develop, consult, approve and implement an Environmental and Social Management Framework (ESMF) for the Project, including an environmental and social assessment, consistent with the relevant ESSs. Proposed activities described in the exclusion list established in the ESMF will be ineligible to receive funding under the Project. 1.3 ENVIRONMENTAL AND SOCIAL MANAGEMENT PLANS (ESMP) a) Ensure the inclusion of IPA/PMU environmental and social assessment SEMAS Ensure that approved business plans, subprojects, or other Project activities have an and mitigation measures prior to environmental and social assessment proportionate to the potential environmental and approval of business plans, subprojects social impacts of their activities, as well as mitigation measures in accordance with the and Project activities. requirements of the ESMP, as indicated in the ESMF. This includes the obligation of not b) Implement mitigation measures carrying out any activities that are part of the Exclusion List. throughout the execution of business plans, subprojects and Project activities. 1.4 MANAGEMENT OF CONTRACTORS As part of the preparation of IPA/PMU procurement documents and respective SEMAS Incorporate the relevant aspects of the ESCP, including, inter alia, the relevant E&S contracts. instruments and code of conduct, into the ESHS specifications of the procurement Supervise contractors throughout documents and contracts with contractors and supervising firms. Thereafter ensure that Project implementation. the contractors and supervising firms comply and cause subcontractors to comply with the ESHS specifications of their respective contracts. 1.5 TECHNICAL ASSISTANCE As part of the preparation of the IPA/PMU procurement documents and respective SEMAS Ensure that the consultancies, studies (including feasibility studies, if applicable), contracts and products, throughout the capacity building, training, and any other technical assistance activities under the Project implementation of the Project. are carried out in accordance with the terms of reference acceptable to the World Bank and consistent with the ESSs, ESMF, SEP and IPPF. Thereafter ensure that the outputs of such activities comply with the terms of reference. 1.5 CONTINGENT EMERGENCY RESPONSE FINANCING a) The adoption of the CERC Manual in IPA/PMU form and substance acceptable to the SEMAS a) Ensure that the CERC Manual includes a description of the ESHS assessment and World Bank is a withdrawal condition management arrangements for the implementation of the CERC component, in under Section [XX] of Schedule 2 of the accordance with the ESSs. [name of legal agreement] for the Project. 4|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – PE Agroecological (P500431) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY b) Adopt any environmental and social (E&S) instruments which may be required for b) Adopt any required E&S instrument activities under the CERC component of the Project, in accordance with the CERC Manual and include it as part of the respective and the ESSs, and thereafter implement the measures and actions required under said bidding process, if applicable, and in E&S instruments, within the timeframes specified in said E&S instruments. any case, before the carrying out of the relevant Project activities for which the E&S instrument is required. Implement the E&S instruments in accordance with their terms, throughout Project implementation. ESS 2: LABOR AND WORKING CONDITIONS 2.1 USE OF THE BORROWER'S LABOR STRUCTURE Ensure that labor management and working conditions of Project workers are carried Throughout the implementation of the IPA/PMU out in accordance with this ESCP and the Borrower’s labor framework, which includes, Project SEMAS but is not limited to, the relevant policy, legal and institutional framework of the country, including its national, state or municipal implementing institutions and applicable laws, regulations, rules and procedures. Promptly notify the Bank of any material change in the Borrower’s labor framework that may affect the Project, providing adequate details of such change, including potential risks and impacts to Project workers, and the immediate measures taken or planned to be taken to address such change and the resulting potential risks and impacts to Project workers, in accordance with ESS2. If, in the Bank’s opinion, such change adversely affects relevant labor aspects and working conditions of Project workers, the Borrower will agree to take measures and actions to address them in a manner acceptable to the Bank and will update the ESCP to reflect such agreed actions. Require contractors to: (i) adhere to the principles of non-discrimination, equal opportunities and equal pay for the same work; (ii) provide their workers with a grievance mechanism and inform them about the channels of government agencies responsible for enforcing labor laws and access to national grievance mechanisms; and, (iii) provide training to workers on Sexual Exploitation, Abuse and Sexual Harassment (SEA/SH) and socialize codes of conduct, including provisions on SEA/SH. 5|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – PE Agroecological (P500431) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY If community workers are hired, the Project will develop procedures to verify that the work: (i) is performed voluntarily, based on an individual or community agreement; (ii) remains within the limits of the legal working hours determined by the consolidation of labour laws; (iii) does not involve child labour; and, (iv) is aligned with occupational health and safety measures commensurate with the risks. 2.2 OCCUPATIONAL HEALTH AND SAFETY Develop the PGRSSO, PAE and PCMSO IPA/PMU Ensure that contractors develop and implement an Occupational Health and Safety Risk before the start of works and SEMAS Management Plan (Plano de Gerenciamento de Risco de Saúde e Segurança Ocupacional - implement throughout the duration of Contractors PGRSSO), an Emergency Response Plan (Plano de Atendimento de Emergência - PAE) and the Project. an Occupational Medical Control Program (Programa de Controle Médico Ocupacional - PCMSO), in accordance with the requirements of the Regulatory Standards of the Ministry of Labor (NR1, NR7) and in line with the requirements of standard NR18 (Construction) and all other applicable Regulatory Standards (NR 1 to NR 35). 2.3 GRIEVANCE MECHANISM FOR PROJECT WORKERS Establish a grievance mechanism prior IPA/PMU to engaging Project workers and SEMAS Establish and operate a grievance mechanism for Project workers, consistent with ESS2, thereafter maintain and operate it Contractors and require contractors and supervisory companies to also have this mechanism, throughout Project implementation. specifying this requirement in the respective bidding documents and contracts. Supervise contracts throughout Project implementation. ESS 3: RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT 3.1 WASTE MANAGEMENT PLAN IPA/PMU Same deadline for the adoption and SEMAS Adopt and implement a Waste Management Plan (WMP), to manage hazardous and implementation of the ESMP (action non-hazardous wastes, consistent with ESS3, and in accordance with the ESMF. 1.3). 3.2 RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT Same deadline for the adoption and IPA/PMU implementation of the ESMF (action SEMAS Incorporate resource efficiency and pollution prevention and management measures in 1.2) and ESMP (action 1.3). the ESMF and ESMP to be prepared under action 1.3 above. ESS 4: COMMUNITY HEALTH AND SAFETY 4.1 COMMUNITY HEALTH AND SAFETY 6|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – PE Agroecological (P500431) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY Assess and manage specific risks and impacts to the community arising from Project Same deadline for the adoption and IPA/PMU activities, including, inter alia, behavior of Project workers, response to emergency implementation of actions 1.2. and 1.3. SEMAS situations, and include mitigation measures in the ESMPs and business plans to be above. prepared in accordance with action 1.3 above and the ESMF. 4.3 SEA AND SH RISKS Same deadline for the adoption and IPA/PMU implementation of actions 1.2. and 1.3. SEMAS Adopt and implement SEA/SH prevention and response measures as part of the ESMF, above, and subsequently implement and procurement documents, which should be included and detailed as part of the throughout the implementation of the respective business plans and ESMP, to assess and manage SEA/SH risks. Project. ESS 5: LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT ESS 5 is currently not relevant. ESS 6: BIODIVERSITY CONSERVATION AND SUSTAINABLE MANAGEMENT OF LIVING NATURAL RESOURCES 6.1 BIODIVERSITY RISKS AND IMPACTS Same deadline for the adoption and IPA/PMU Adopt and implement appropriate measures to suppress vegetation, restore vegetation implementation of ESMF (action 1.2) SEMAS cover, pre-clearance survey and rescue flora and fauna, among others applicable to and ESMP (action 1.3) biodiversity risk management, as provided for in the ESMF and ESMP, in a manner consistent with ESS 6. ESS 7: INDIGENOUS PEOPLES/SUB-SAHARAN AFRICAN HISTORICALLY UNDERSERVED TRADITIONAL LOCAL COMMUNITIES 7.1 INDIGENOUS PEOPLES PLANNING FRAMEWORK Adopt the IPPF no later than 30 days IPA/PMU Adopt and implement an Indigenous Peoples Planning Framework (IPPF) for the Project, after the Effective Date and thereafter SEMAS consistent with ESS7. implement the IPPF throughout Project implementation. 7.2 INDIGENOUS PEOPLES PLAN IPA/PMU a) Component 1 - Assess potential risks and development opportunities for SEMAS indigenous peoples and incorporate mitigation measures into business plans to a) Before approving business plans. be developed in action 1.3, as established in the IPPF and in a manner consistent with ESS 7. b) Approve IPPs before starting implementation of subproject activities. 7|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – PE Agroecological (P500431) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY b) Component 2 - Develop Indigenous Peoples Plans (IPPs) with an assessment of potential risks and development opportunities for them, as well as mitigation and development measures, as established in the IPPF and in a manner consistent with ESS7. IPPs may be a separate instrument or form part of the ESMPs to be developed in action 1.3. ESS 8: CULTURAL HERITAGE 8.1 CHANCE FINDS Same deadline for the adoption and IPA/UGP Adopt and implement the chance finds procedures, as part of the ESMF and, implementation of actions 1.2. and 1.3. SEMAS subsequently, of the ESMPs of the Project. above. ESS 9: FINANCIAL INTERMEDIARIES ESS 9 is not relevant. ESS 10: STAKEHOLDER ENGAGEMENT AND INFORMATION DISCLOSURE 10.1 STAKEHOLDER ENGAGEMENT PLAN PREPARATION AND IMPLEMENTATION Adopt the SEP no later than 30 days IPA/UGP Finalize, consult, adopt and implement a Stakeholder Engagement Plan (SEP) for the after the Effective Date and thereafter SEMAS Project, consistent with ESS10, which shall include measures to, inter alia, provide implement the SEP throughout Project stakeholders with timely, relevant, understandable and accessible information, and implementation. consult with them in a culturally appropriate manner, which is free of manipulation, interference, coercion, discrimination and intimidation. 10.2 PROJECT GRIEVANCE MECHANISM IPA/PMU Establish the grievance mechanism SEMAS Establish, publicize, maintain, and operate an accessible grievance mechanism, to within 30 days after the Effective Date receive and facilitate resolution of concerns and grievances in relation to the Project, and thereafter maintain and operate promptly and effectively, in a transparent manner that is culturally appropriate and the mechanism throughout Project readily accessible to all Project-affected parties, at no cost and without retribution, implementation. 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 8|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – PE Agroecological (P500431) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY CS1 Provide environmental and social teams and other members of the PMU and staff of partner organizations (as relevant) with training on: Periodically, throughout the IPA/PMU • stakeholder mapping and engagement implementation of the Project, holding SEMAS • recording and responding to interactions and complaints the first session within 90 days after the • specific aspects of environmental and social risk assessment and management Effective Date. • emergency preparedness and response • community health and safety. CS2 Provide occupational health and safety training to Project workers, including on Periodically, throughout the IPA/PMU emergency prevention and preparedness and emergency response arrangements, and implementation of the Project, holding SEMAS measures to prevent sexual harassment, exploitation and abuse. the first session within 90 days after the Contractors Effective Date. 9|Page