MINISTRY OF FOOD, AGRICULTURE AND LIGHT INDUSTRY Government of Mongolia Virtual Cooperatives of Pastoral Livestock Communities, P174733 ENVIRONMENTAL and SOCIAL COMMITMENT PLAN (ESCP) March 2021 1|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN 1. MOFALI will implement the Virtual Cooperatives of Pastoral Livestock Communities Project (the Project). The Japan Social Development Fund has agreed to provide financing for the Project as RETF to be administered by WBG. 2. MOFALI will implement material measures and actions so that the Project is implemented in accordance with the Environmental and Social Standards (ESSs). This Environmental and Social Commitment Plan (ESCP) sets out material measures and actions, any specific documents or plans, as well as the timing for each of these. 3. MOFALI will also comply with the provisions of any other E&S documents required under the ESF and referred to in this ESCP, such as Environmental and Social Management Plans (ESMP), Resettlement Action Plans (RAP), Ethnic Minority Development Plans (EMDPs), and Stakeholder Engagement Plans (SEP), and the timelines specified in those E&S documents. 4. MOFALI is responsible for compliance with all requirements of the ESCP. 5. Implementation of the material measures and actions set out in this ESCP will be monitored and reported to the Bank by MOFALI as required by the ESCP and the conditions of the legal agreement, and the Bank will monitor and assess progress and completion of the material measures and actions throughout implementation of the Project. 6. As agreed by the Bank and MOFALI, this ESCP may be revised from time to time during Project implementation, to reflect adaptive management of Project changes and unforeseen circumstances or in response to assessment of Project performance conducted under the ESCP itself. In such circumstances, MOFALI will agree to the changes with the Bank and will update the ESCP to reflect such changes. Agreement on changes to the ESCP will be documented through the exchange of letters signed between the Bank and the MOFALI. The MOFALI will promptly disclose the updated ESCP. 7. Where Project changes, unforeseen circumstances, or Project performance result in changes to the risks and impacts during Project implementation, the MOFALI shall provide additional funds, if needed, to implement actions and measures to address such risks and impacts, which may include risks and impacts that are relevant to the Project, such as environmental, health, and safety impacts during small-scale civil works and operation of livestock and cashmere wool production facilities. 2|Page MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBILE ENTITY/AUTHORITY MONITORING AND REPORTING A REGULAR REPORTING Semi-annually throughout Project MOFALI/PIU implementation. Prepare and submit to the Bank regular monitoring reports on the environmental, social, health and safety (ESHS) performance of the Project, including but not limited to the implementation of the ESCP, status of preparation and implementation of E&S documents required under the ESCP, stakeholder engagement activities, functioning of the grievance mechanism(s). B INCIDENTS AND ACCIDENTS Notify the Bank within 48 hours after MOFALI/PIU learning of the incident or accident. Promptly notify the Bank of any incident or accident related to the Project which has, or is likely to have, a significant adverse effect on the Provide a subsequent report within a environment, the affected communities, the public or workers. Provide timeframe acceptable to the Bank as sufficient detail regarding the incident or accident, indicating immediate requested. measures taken or that are planned to be taken to address it, and any information provided by any contractor and supervising entity, as appropriate. Subsequently, as per the Bank’s request, prepare a report on the incident or accident and propose any measures to prevent its recurrence. ESS 1: ASSESSMENT AND MANAGEMENT OF ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS 1.1 ORGANIZATIONAL STRUCTURE Organization structure and qualified staff MOFALI maintained throughout Project MOFALI shall maintain a Project Management Unit in association with implementation. LCP Project Implementation Unit (PIU) with qualified staff and resources to support management of environmental and social risks and impacts of the Project, including an environmental and social specialist. 3|Page MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBILE ENTITY/AUTHORITY 1.2 ENVIRONMENTAL AND SOCIAL ASSESSMENT Throughout Project implementation. MOFALI/PIU Update, adopt, and implement, the Environmental and Social Management Framework that has been prepared for the Project, in a manner acceptable to the Bank. 1.3 MANAGEMENT TOOLS AND INSTRUMENTS A draft ESMF has been prepared before MOFALI/PIU Project appraisal. Screen any proposed subproject in accordance with the Environmental and Social Management Framework (ESMF) prepared for the Project, ESMF should apply throughout Project and, thereafter, draft, adopt, and implement the subproject implementation, and Environmental and Environmental and Social Management Plan (ESMP), as required, in a Social (E&S) risk screening forms should be manner acceptable to the Bank. sent to the Bank for records and spot- check. ESMPs should be submitted for the Bank approval before launching the bidding process for the respective subproject. Once approved, the ESMPs are carried out throughout Project implementation. 1.4 MANAGEMENT OF CONTRACTORS Prior to the preparation of procurement MOFALI/PIU documents. Incorporate the relevant aspects of the ESCP, including the relevant E&S documents and/or plans, and the Labor Management Procedures, into Supervise contractors throughout Project the ESHS specifications of the procurement documents with implementation. contractors. Thereafter ensure that the contractors comply with the ESHS specifications of their respective contracts. ESS 2: LABOR AND WORKING CONDITIONS 2.1 LABOR MANAGEMENT PROCEDURES A draft LMP has been prepared before MOFALI/PIU Project appraisal. Update, adopt, and implement the Labor Management Procedures (LMP) that have been developed for the Project, to guide management The LMP should be in place before of direct or contracted project workers, and potential locally sourced engaging project workers in Project construction workers. activities and thereafter implemented throughout Project implementation. 4|Page MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBILE ENTITY/AUTHORITY 2.2 GRIEVANCE MECHANISM FOR PROJECT WORKERS Grievance mechanism will be operational MOFALI/PIU prior engaging Project workers and will be Establish, maintain, and operate a grievance mechanism for Project maintained throughout Project workers, as described in the LMP and consistent with ESS2. implementation. GRM should be established locally for management of grievances from construction workers. 2.3 OCCUPATIONAL HEALTH AND SAFETY (OHS) MEASURES Throughout Project implementation. MOFALI/PIU Implement adequate occupational health and safety measures in line with the ESMF, the applicable requirements of ESS2, the ESHGs and other relevant GIIP. ESS 3: RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT 3.1 RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND Throughout Project implementation. MOFALI/PIU MANAGEMENT Adopt the environmental screening process as set out in the ESMF to identify the key ESS3 related issues associated with civil works and operation of livestock and cashmere wool production facilities. Implement the Environmental Code of Practice (ECOP) for small civil works and measures for resource efficiency and pollution management as set out in the ESMF. ESS 4: COMMUNITY HEALTH AND SAFETY 4.1 TRAFFIC AND ROAD SAFETY Throughout Project implementation. MOFALI/PIU Adopt and implement measures and actions to assess and manage traffic and road safety risks as required in the ESMF. 5|Page 4.2 COMMUNITY HEALTH AND SAFETY Throughout Project implementation. MOFALI/PIU Adopt and implement measures and action as set out in the ESMF to assess and manage specific risks and impacts to the community arising from Project activities, including measures to minimize the transmission of communicable diseases such as COVID19. ESS 5: LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT 5.1 Not relevant. ESS 6: BIODIVERSITY CONSERVATION AND SUSTAINABLE MANAGEMENT OF LIVING NATURAL RESOURCES 6.1 BIODIVERSITY RISKS AND IMPACTS Mitigation measures should be prepared MOFALI/PIU Exclude activities that may cause adverse impacts on critical habitats or prior to the implementation of subprojects natural habitats as ineligible for financing under the Project. Develop, involving biodiversity issues, and be adopt and implement necessary mitigation measures as part of undertaken throughout subproject subproject E&S Impact Assessment (ESIA) against any negative impacts implementation. on biodiversity, consistent with the latest national regulations and ESS6. 6.2 SUSTAINABLE MANAGEMENT OF LIVING NATURAL RESOURCES Throughout Project implementation. MOFALI/PIU Adopt and implement measures as set out in the ESMF to improve animal welfare and sustainability in the livestock sector, consistent with national regulations and GIIP, including the applicable ESHGs of the World Bank Group and IFC’s Good Practice Note on Improving Animal Welfare in Livestock Operations. ESS 7: INDIGENOUS PEOPLES/SUB-SAHARAN AFRICAN HISTORICALLY UNDERSERVED TRADITIONAL LOCAL COMMUNITIES 7.1 Develop project SEP that outlines engagement and information A draft SEP has been prepared before MOFALI/PIU disclosure activities to ethnic minorities in project region if there is any. appraisal. The SEP should be implemented throughout Project implementation. ESS 8: CULTURAL HERITAGE 8.1 CHANCE FINDS: Prepare, adopt, and implement the chance finds Throughout Project implementation. MOFALI/PIU procedure described in the ESMF developed for the Project. ESS 9: FINANCIAL INTERMEDIARIES 9.1 Not relevant. ESS 10: STAKEHOLDER ENGAGEMENT AND INFORMATION DISCLOSURE 6|Page 10.1 STAKEHOLDER ENGAGEMENT PLAN PREPARATION AND A draft SEP has been prepared before MOFALI/PIU IMPLEMENTATION appraisal. Adopt and implement Stakeholder Engagement Plan (SEP) and update it The SEP should be implemented as necessary. throughout Project implementation. 10.2 PROJECT GRIEVANCE MECHANISM The grievance mechanism should be MOFALI/PIU prepared by Project appraisal and be Prepare, adopt, maintain and operate a grievance mechanism for the operational throughout Project project, as described in the SEP. implementation. CAPACITY SUPPORT (TRAINING) CS1 Training to MOFALI, PIU and other entities participating in the project Throughout Project implementation. MOFALI/PIU implementation on: • World Bank’s Environmental and Social Framework (ESF); • Environmental and social management procedure per ESMF (throughout subproject screening, preparation, approval and implementation); • Resource efficiency and pollution management during construction work and the operation of livestock production and cashmere wool production facilities; • Animal welfare and sustainability in livestock sector; • Stakeholder mapping and engagement per SEP; • Labor management procedures. CS2 Training to all personnel involved in the implementation of Project Throughout Project implementation. MOFALI/PIU activities on: • WHO’s guidelines on COVID-19 infection prevention and control; • Risk communication and community engagement. 7|Page