Review of Environmental, Social, and Labor Issues Environmental Review:
1. Project Description: The proposed Project will allow Supervielle to finance long-term investments in SMEs with special focus on those in the province of Mendoza.
2. Environmental and Social Categorization and Rationale: This is a Category FI-2 according to the IIC´s Environmental and Social Sustainability Policy because of the medium-level risk of any current or future sub-projects.
3. Environmental and Social Risks and Impacts: The Project environmental and social impacts, and any occupational risks associated with Supervielle´s financing operations are wide-ranging due to the diverse activities of the Bank´s potential clients (wine, pharmaceutical, mining, oil and gas industries, etc.). Any environmental impacts may eventually result from the improper handling of hazardous materials (such as agrochemicals, fuels and lubricants), waste and liquid and gas effluents, which could also affect the environment by generating noise, vibrations, and visual impacts. Any potential impact on neighboring communities should also be considered, including any people resettlement, cultural heritage impact, health risks (due to eventual air pollution and water contamination), traffic accident risks, etc. The proper management of occupational risks associated with the construction and operational phases of each project facilities should also be considered.
4. Mitigation Measures/Environmental and Social Action Plan: The financing should also make sure that any of the IIC resources do not fund projects included in the IIC List of Excluded Activities, and that such projects comply with any local environmental, health, labor, safety and security legislation. Supervielle has adopted an Environmental and Social Risk Management (“ESRM”) methodology that is included in the bank´s credit review process. To this end, Supervielle has agreed to fund only projects that could prove to have an adequate management of any environmental and social impacts in order to ensure biodiversity protection, use of renewable resources, adequate waste management, human health protection, and alternative project designs to avoid any involuntary resettlements. Certain actions to be implemented by Supervielle have been identified as aimed to align their ESRM methodology and goals with IIC Policies. Such actions are included in the Environmental and Social Action Plan to be followed by Supervielle, including, among others, the implementation of a training plan for Bank employees, the development of an environmental, social, health and safety monitoring and control plan, and generating annual environmental, health and safety reports written by clients based on the ESRM methodology.