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Stakeholder Engagement Plan (SEP)

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Stakeholder Engagement Plan (SEP) Stakeholder Engagement Plan (SEP) ASTARTA Agri-industrial holding Kyiv Contents Introduction 1. Purpose and scope of the document 2. Information about the Company. 2.1. Description of business model 2.2. Product development chains 3. Purpose and scope of the Project 4. Legislative requirements and standards for public consultation 4.1. Legal basis of Ukraine and international requirements for public consultation 4.2. International standards for public consultation used by financial institutions 4.3 Comparison of national regulations with EBRD and IFC recommendations 5. Stakeholder Analysis 5.1. Stakeholder identification 5.2. Evaluation of direct positive/negative impacts on stakeholders 5.3. Stakeholder map 5.4. Stakeholder expectations in project implementation areas 6. Stakeholder Engagement Program 6.1. Previous experience of stakeholder engagement and its results 6.2. Interaction of SEP with other policies and procedures of the Company 6.3. Forms of communication with stakeholders 6.4. Communication plan with stakeholders 7. Mechanism for implementation of an action plan to respond to stakeholder problems 8. Grievance management 8.1. Procedure for responding to unfounded grievance 9. Monitoring and reporting 10. Procedure for updating the document and making changes 10.1. Overview of a typical stakeholder engagement process for a new project/extension, reconstruction 11. Stakeholder Engagement Management Appendix A Grievance form and mechanism Appendix B Contact information for applications, responsible persons for stakeholder engagement in the regions Introduction The present Stakeholder Engagement Plan (SEP) was developed for increase in public knowledge as well as for stakeholders and improvement of procedures of the Company The offered actions of the project according to the legislation of Ukraine, the managements of state standard specifications and Construction Norms and Regulations, were also developed taking into account the previous corresponding experience of the best world practices. This document defines consultations with stakeholders and engagement process for agri-industrial holding Astarta. This document is called «Stakeholder Engagement plan” (SEP). The purpose of this SEP - to define and describe local requirements for consultations and disclosure of information, to define the key interested groups, to provide the table of strategy and time for exchange of information and consultations of these groups; to describe resources and responsibility for performance of SEP and a detail of reporting/documentation of consultations and disclosure of information on activity. This SEP is intended in order that all interested parties were defined, and are significantly consulted during development and implementation of the project.. Besides, this Stakeholder Engagement plan was prepared according to requirements to Executions of the EBRD, policy of the EBRD about public awareness (2008), and includes the following: • Local legal base of consulting activity and requirements to disclosure of information of the project, in particular, concerning those kinds of activity of public consultations which are directly necessary at local process of delivery of permissions; • Identification of potential interested parties which are mentioned or can be affected or can have interest in the project; • Reports of consultations; • The description of how some problems or complaints will be processed (The mechanism of consideration of complaints); • The action plan for further carrying out consultations during preparation, construction and operation of the project; • The plan for disclosure of information, including identification of places where the corresponding documentation of the project will be available locally, and in other countries, and also languages which will be used. SEP will be reconsidered and be updated on a regular basis. If activity is changed or the new kinds of activity connected with interested parties will be begun with interaction, then SEP will be updated. SEP will also be periodically reconsidered during implementation of the project and to be updated on a measure need. 1. Purpose and scope of the document Stakeholder engagement seeks to establish and maintain constructive engagement with stakeholders. This is an ongoing process. This process continues throughout the project cycle and includes a wide range of activities and approaches, from information sharing and consultation to active participation, negotiation and partnerships. The objectives of the Stakeholder Engagement Plan are to describe the company`s strategy and program for stakeholder engagement, considering the cultural characteristics required. The aim is to provide relevant and comprehensible information in a timely manner, as well as to provide stakeholders with an opportunity to express their views and concerns and to allow the company to take these points into account and make appropriate decisions. The purpose of this document consists in establishing the basis for constructive dialogue between agri-industrial holding Astarta and stakeholders. Stakeholder Engagement Plan includes the following elements: project conditions and legal requirements, stakeholder identification and analysis, stakeholder commitment planning - identifying communication channels that are appropriate for local needs grievance mechanism The above elements are described in the following chapters. 2.1. Information about the Company. Description of business model Brief description Astarta was founded in 1993. Vertically integrated agro-industrial holding, specializing in sugar production, agriculture, soybean processing and dairy farming. Astarta's production facilities are located in Poltava, Vinnytsia, Khmelnytsky, Chernihiv, Ternopil, Zhytomyr, Cherkasy and Kharkiv regions. In 2006, Astarta was the first Ukrainian company to successfully conduct IPO on the Warsaw Stock Exchange, attracting investors from Europe, the USA and Asia. In 2017 Canadian Fairfax fund has become one of the key shareholders of the company . Business model The Group has developed an effective business model which integrates four main business segments involving synergetic interconnection. Each business segment represents a consumer and supplier of materials from/to another business segment aimed at securing the required level of self-sufficiency. Sugar production and biomass plant Sugar production operations include eight sugar plants, which together can process more than 40 000 tons of sugar beets per day. The company actively conducts modernisation programs. ASTARTA has been implementing the Energy Efficiency Program to reduce not only natural gas and coal consumption but also the use of limestone and fresh water in sugar production. Molasses is partly used in our cattle farms, partly is being used in our biomass plant in Globyno. Sugar beet pulp is being used in our biomass plant in Globyno to produce energy and fertilisers for our farms.ASTARTA sugar plants are certified according to 32 international management systems: quality (ISO 9001), food safety management systems (ISO 22000 and FSSC 22000), environmental management system (ISO 14001), health and safety management system (ISO 45001) and energy management systems (ISO 50001). Sugar plants undergo social and environmental audits at the request of consumers to ensure conformity to international standards systems. Agriculture Our farms are located around the country’s best production areas in the oblasts of Poltava, Vinnytsya, Ternopil, Khmelnytsky, Kharkiv, Cherkasy, Chernihiv, and Zhytomyr. We mainly grow sugar beet – which is then processed at our own sugar plants, as well as grains and oilseeds. We aim to improve crop yields based on best technologies to improve economic efficiency while maintaining environmental sustainability. We put a significant and growing focus on organic farming which is being implemented in Poltava region today as part of the pilot project. Since 2015 the company has implemented a special program called “Grain of ASTARTA” to build more grain storage facilities. The company modernises existing storage capacities and constructs new modern grain elevators in Poltava, Khmelnytsky and Vinnytsya oblasts. Our total storage capacity now stands at up to 500 000 tons. As a part of ASTARTA there are two seed plants, which provide the needs of holding companies in high-yielding wheat and soybean seeds. Soybean processing ASTARTA put into operation the second largest integrated soybean processing plant in Ukraine in Globyno (Poltava region) in early 2014. The installed crushing capacity is 700 tons of soybeans per day or approximately 220 000 tons annually. Annual production capacity is up to 160 000 tons of feeding high-protein toasted meal, 40 000 tons of soybean oil, and 9 000 tons of granulated shell. The complex has equipment supplied by leading manufacturers and certified in accordance with international standards, as well as water purification and air cleaning systems. Globynsky soybean processing plant uses biogas supplied by biomass plant in Globyno. Soybean processing is an export oriented direction: most of the soya for processing is grown by agro-firms of the company, the rest of the raw materials are purchased from partners. Dairy cattle farming Dairy farming is an important socio-economic area of our work. ASTARTA is one of the largest industrial producers of milk in Ukraine, the total herd of cattle on the farms of the company totals 29 000 heads. Owing to long-term breeding work, investments in farm equipment
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