STATE OF MATO GROSSO Secretariat of Finance - State of Mato Grosso PROGESTÃO MATO GROSSO: PUBLIC SECTOR EFFICIENCY AND MODERNIZATION PROJECT P178339 Draft ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) March 4, 2022 1|P a ge ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN 1. The Secretariat of Finance - State of Mato Grosso (SEFAZ) will implement the Progestão Mato Grosso: Public Sector Efficiency and Modernization Project (the Project), with the involvement of the State Secretariat for Planning, and the State Secretariats of Environment, Health, and Social Assistance as set out in the Loan Agreement. The International Bank for Reconstruction and Development (the World Bank) has agreed to provide financing for the Project, as set out in the referred agreement. 2. The Secretariat of Finance – State of Mato Grosso (SEFAZ) 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 SEFAZ 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 SEFAZ, 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 SEFAZ 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 [name position of designated official, e.g. minister, director] of SEFAZ. The SEFAZ shall promptly disclose the updated ESCP. 2|P a ge ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – PROGESTÃO MATO GROSSO PROJECT MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY/AUTHORITY MONITORING AND REPORTING A REGULAR REPORTING Submit six-monthly reports to the World SEFAZ Bank throughout Project implementation, Prepare and submit to the World Bank+ regular monitoring reports on commencing after the Effective Date. the environmental, social, health and safety (ESHS) performance of the Project, including stakeholder engagement activities, and functioning of Submit each report to the World Bank no the grievance mechanism. later than 30 days after the end of each reporting period. B INCIDENTS AND ACCIDENTS Notify the World Bank no later than 48 SEFAZ hours after learning of the incident or Promptly notify the World Bank of any incident or accident related to accident. the Project which has, or is likely to have, a significant adverse effect on the environment, the affected communities, the public or workers, Provide subsequent report to the World including, inter alia, cases of sexual exploitation and abuse (SEA), sexual Bank within a timeframe acceptable to the harassment (SH), and accidents that result in death, serious or multiple World Bank injury. Provide sufficient detail regarding the scope, severity, and possible causes of the incident or accident, indicating immediate measures taken or that are planned to be taken to address it, and any information provided by any contractor 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. ESS 1: ASSESSMENT AND MANAGEMENT OF ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS 1.1 ORGANIZATIONAL STRUCTURE The organizational structure shall be SEFAZ established within 30 days after the Project Establish and maintain a Project Management Unit with qualified staff Effective Date, and maintained throughout and resources to support management of E&S risks and impacts of the Project implementation, and key PMU roles Project. will include attention to E&S commitments in their TOR. 3|P a ge ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – PROGESTÃO MATO GROSSO PROJECT MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY/AUTHORITY 1.2 TECHNICAL ASSISTANCE The terms of reference shall be reviewed and approved by the Bank prior to their Ensure that the consultancies, studies, capacity building, training and any finalization throughout Project other technical assistance activities under the Project are carried out in implementation, and technical assistance accordance with terms of reference reviewed and found acceptable to activities shall be thereafter carried out in the Bank, that incorporate the relevant requirements of the ESSs. accordance with those terms of reference. ESS 2: LABOR AND WORKING CONDITIONS 2.1 LABOR MANAGEMENT PROCEDURES Throughout Project implementation. SEFAZ Incorporate in the contracts for consultants directly hired or engaged through third-parties to perform works related to core functions of the Project the relevant aspects of ESS 2: • The provision to all project workers of clear and understandable information and documentation on the terms and conditions of employment; • The respect of the principles of equal opportunity, fair treatment, no discrimination in all decisions related with recruitment, hiring, compensation and access to training of Project workers; • The respect of the worker’s rights to join workers’ organizations; • The principle of no tolerance with regards to moral and sexual harassment, intimidation and/or exploitation in the workplaces; • The principle of minimum age of employment set according to national legislation and the requirements of ESS 2; • The principle of no acceptance of any form of forced labor. 2.2 GRIEVANCE MECHANISM FOR PROJECT WORKERS Grievance mechanism operational prior to SEFAZ engaging Project workers and maintained Establish and operate a grievance mechanism where project workers throughout Project implementation. (direct and contracted works) can raise workplace concerns (including SEA/SH concerns and issues) without fear of retaliation and in accordance to the requirements of ESS 2. 4|P a ge ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – PROGESTÃO MATO GROSSO PROJECT MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY/AUTHORITY 2.3 OCCUPATIONAL HEALTH AND SAFETY (OHS) MEASURES Throughout Project implementation. SEFAZ Incorporate and follow international standards of occupational health and safety (OHS) in the workplace of all public servants and consultants directly hired or engaged through third-parties to perform works related to the Project ESS 3: RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT 3. RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND Throughout Project implementation. SEFAZ MANAGEMENT Consider best practices of recycle and recovery of E-Waste according to the requirements of the national legislation and ESS 3, as appropriate. ESS 4: COMMUNITY HEALTH AND SAFETY This standard is not currently relevant. ESS 5: LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT This standard is not currently relevant. ESS 6: BIODIVERSITY CONSERVATION AND SUSTAINABLE MANAGEMENT OF LIVING NATURAL RESOURCES BIODIVERSITY RISKS AND IMPACTS 6.1 Throughout Project implementation. SEFAZ Include of the applicable requirements of ESS6, as relevant. ESS 7: INDIGENOUS PEOPLES/SUB-SAHARAN AFRICAN HISTORICALLY UNDERSERVED TRADITIONAL LOCAL COMMUNITIES 5|P a ge ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – PROGESTÃO MATO GROSSO PROJECT MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY/AUTHORITY 7.1 INDIGENOUS PEOPLES PLANNING Throughout Project implementation. SEFAZ Carry out the Project in accordance with the applicable requirements of ESS7. Whenever relevant, the Terms of Reference to carry out Technical assistance activities must: • Assess opportunities and barriers to design and implement the Technical Assistance activity in a manner that will ensure that Indigenous peoples' concerns or preferences are addressed and that Indigenous Peoples would have fair and equitable access to project benefits; • Ensure that Indigenous Peoples will be consulted in a proportionate and culturally adequate manner in matters of their interest; • All appropriate measures necessary to achieve results consistent with the requirements set by ESS 7 are taken and followed during the implementation phase. 7.2 The Project’s Grievance Mechanism will be culturally appropriate and Throughout Project implementation. SEFAZ accessible to Indigenous Peoples. ESS 8: CULTURAL HERITAGE 8.1 CULTURAL HERITAGE RISKS AND IMPACTS Throughout Project implementation. SEFAZ Include of the applicable requirements of ESS8, as relevant. ESS 10: STAKEHOLDER ENGAGEMENT AND INFORMATION DISCLOSURE 10.1 STAKEHOLDER ENGAGEMENT PROCEDURES Throughout Project implementation. SEFAZ Adopt Stakeholder Engagement Procedures for the Project, consistent with ESS10, which shall include measures to, inter alia: (a) Identify the relevant stakeholders (affected parties and other interested parties) for each one of the Technical Assistance 6|P a ge ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – PROGESTÃO MATO GROSSO PROJECT MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY/AUTHORITY activities supported by the Project (and their potential environmental and social risks and impacts as well as downstream effects); (b) Provide stakeholders with timely, relevant, understandable and accessible information about the Technical Assistance activities they might be interested in or be affected by; and, (c) Consult – as necessary and in a proportionate way to the risks, impacts and downstream effects of the Technical Assistance activities – all potentially affected parties, in a culturally appropriate manner, which is free of manipulation, interference, coercion, discrimination and intimidation. 10.2 PROJECT GRIEVANCE MECHANISM Within 30 days after Project Effective Date SEFAZ and maintained throughout Project implementation. Rely on the State General Ombudsman Office as an accessible grievance mechanism, to receive and facilitate resolution of concerns and grievances in relation to the Project in a manner consistent with ESS10. Ensure that the GM can report on project-related grievances in the Projects’ semi-annual Progress Reports. CAPACITY SUPPORT CS1 Training in the Bank’s Environmental and Social Standards for civil No later than 30 days after the Project SEFAZ servants and consultants of the PMU working on the Project. This Effective Date training will be carried out in collaboration with the Bank and in agreement with the Project Management Unit (PMU). 7|P a ge