Lorax Capital Partners (LCP) commissioned Environics to carry out an Environmental and Social Due Diligence (ESDD) assessment for their potential investment in an Egyptian group of companies specialized in cosmetics manufacturing and packaging materials, operating through three facilities: (2 for manufacturing cosmetics, and one for manufacturing packaging materials), located in the First Industrial Zone, Gamasa, Dakahlia Governorate.
Environics carried out the ESDD which aimed at assessing the Environmental and Social (E&S) performance of the facilities, in accordance with the Egyptian national environmental and social regulations, as well as the relevant international standards, as follows:
National environmental and social legislations, which also cover occupational health & safety:
IFC Performance Standards (PS) on Environmental and Social Sustainability, 2012
EBRD Environmental and Social Policy Guidelines and Performance Requirements (PR), 2014
The ESDD comprised the following activities:
Document Review: A review of relevant documents and information provided before the site visit, as well as review of additional information collected during the visit or obtained after;
Site Reconnaissance: Site walk through and meetings and interviews with relevant personnel to discuss the environmental and social issues, as well as additional data collection;
Assessment: Assessing the compliance of the 3 facilities with the aforementioned standards, identifying gaps to achieve compliance and recommending proper actions;
Reporting: Preparing a due diligence findings report, including the study limitations, description of the facilities‟ components, utilities, and manufacturing processes, the environmental settings, the identified findings and gaps, as well as an Environmental and Social Action Plan (ESAP) describing the actions to be implemented to achieve compliance with the Reference Framework, and suggesting responsibility allocation for each action to close the gap within a reasonable timeline.