Environmental and Social Due Diligence for Inter-Yedynstvo Holding - AVGroup

Environmental and Social Due Diligence for Inter-Yedynstvo Holding

Client: DCP, FMO

The assignment focused on assessing a potential investment in Ukraine involving five feed production enterprises, including feed mills and a premix plant, with a total production capacity of 600,000 tons per year. These assets, located across three regions, are equipped with state-of-the-art technology certified under various international standards. The objective of the project was to conduct an independent review and verification of compliance with IFC Performance Standards, identify gaps, recommend corrective measures, and assess operations in relation to human rights considerations and reputational risks in Ukraine. 

The assessment framework was based on IFC Performance Standards, the World Bank Group Environmental, Health and Safety (EHS) Guidelines, as well as applicable local, national, and international environmental and social legislation. 

Project Tasks:

01

Independent review of environmental and social aspects with a focus on core facilities (feed mills, premix plant, vehicle fleet), as well as key suppliers and off-takers in the value chain;

02

Assessment of compliance with IFC PS, Equator Principles, and EHS Guidelines, including benchmarking against international best practices;

03

Identification and analysis of contextual risks, including potential human rights and reputational impacts;

04

Review of management structures for environmental and social implications;

05

Evaluation of adequacy of existing projects, measures, budgets, and monitoring systems.

Results and Key Findings:

  1. Preliminary Report: A short early report summarizing key observations and identified issues immediately after site visits. 
  1. Comprehensive Report: A detailed document outlining the methodology, project description, verified data, site inspections, interviews, due diligence findings, and recommendations aligned with the agreed scope. 
  1. Compliance Matrix: A clear compliance table mapping requirements under IFC Performance Standards, Equator Principles, and EHS Guidelines, including an assessment of current compliance status, identified gaps (minor vs. major), and recommended corrective actions, consolidated into an Environmental and Social Action Plan (ESAP). 

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